PUBLIC DISCLOSURE COPY Form 990 Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private foundations) À¾µ» Do not enter social security numbers on this form as it may be made public. Open to Public I Department of the Treasury Internal Revenue Service I Go to www.irs.gov/Form990 for instructions and the latest information. Check if applicable: Inspection 07/01 , 2017, and ending A For the 2017 calendar year, or tax year beginning B OMB No. 1545-0047 Return of Organization Exempt From Income Tax 06/30 , C Name of organization 20 18 D Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Address change Doing business as Name change Number and street (or P.O. box if mail is not delivered to street address) Initial return UNIVERSITY GARDENS, UGB203 Final return/ terminated Amended return Application pending City or town, state or province, country, and ZIP or foreign postal code E Telephone number Room/suite (213 ) 821-1900 G Gross receipts $ 5,604,030,490. LOS ANGELES, CA 90089-8003 H(a) Is this a group return for Yes X No DOCTOR WANDA M. AUSTIN subordinates? UNIVERSITY GARDENS UGB203 LOS ANGELES, CA 90089-8003 Yes No H(b) Are all subordinates included? If "No," attach a list. (see instructions) X 501(c)(3) Tax-exempt status: I 501(c) ( ) (insert no.) 4947(a)(1) or 527 HTTP://WWW.USC.EDU J Website: H(c) Group exemption number CA K Form of organization: X Corporation Trust Association Other L Year of formation: 1895 M State of legal domicile: Summary Part I 1 Briefly describe the organization's mission or most significant activities: SEE SCHEDULE O F Name and address of principal officer: J Net Assets or Fund Balances Expenses Revenue Activities & Governance I 2 3 4 5 6 7a b 8 9 10 11 12 13 14 15 16 a b 17 18 19 Check this box I if the organization discontinued its operations or disposed of more than 25% of its net assets. 57. mmmmmmmmmmmmmmmmmmmmmmm 52. mmmmmmmmmmmmmmmmm 40,385. mmmmmmmmmmmmmmmmmmm m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm 29,976,233. -19,829,242. mmmmmmmmmmmmmmmmmmmmmmmm 937,415,378. 927,957,977. m m m m m m m m m m m m m m m m m m m m m m m m m 4,005,388,630. m m m m m m m m m m m m m m m m m m m m m m m m m 183,250,103. 4,391,940,489. 280,360,974. mmmmmmmmmmmmmmmmm 2,355,145. 2,677,065. m m m m m mm mm mm mm mm mm mm 5,128,409,256. 5,602,936,505. m m m m m m m m m m m m m m m 513,955,318. 561,828,959. m m m m m m m m m m m m m m m m m 2,562,722,181.0. 2,776,301,988.0. mmmmmmm 607,325. 643,214. m m m 65,801,667. mmmmmmmmmmmmmm I m m m m m m m m m m m m m m m m 1,599,945,822. 2,016,730,491. 4,677,230,646. 5,355,504,652. m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm 451,178,610. 247,431,853. 11572918422. 12195450741. m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m 3,148,520,752. m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm 8,424,397,670. 3,302,362,604. 8,893,088,137. Number of voting members of the governing body (Part VI, line 1a) 3 4 5 6 7a 7b Number of independent voting members of the governing body (Part VI, line 1b) Total number of individuals employed in calendar year 2017 (Part V, line 2a) Total number of volunteers (estimate if necessary) Total unrelated business revenue from Part VIII, column (C), line 12 Net unrelated business taxable income from Form 990-T, line 34 Prior Year Current Year Beginning of Current Year End of Year Contributions and grants (Part VIII, line 1h) Program service revenue (Part VIII, line 2g) Investment income (Part VIII, column (A), lines 3, 4, and 7d) Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) Total revenue - add lines 8 through 11 (must equal Part VIII, column (A), line 12) Grants and similar amounts paid (Part IX, column (A), lines 1-3) Benefits paid to or for members (Part IX, column (A), line 4) Salaries, other compensation, employee benefits (Part IX, column (A), lines 5-10) Professional fundraising fees (Part IX, column (A), line 11e) Total fundraising expenses (Part IX, column (D), line 25) Other expenses (Part IX, column (A), lines 11a-11d, 11f-24e) Total expenses. Add lines 13-17 (must equal Part IX, column (A), line 25) Revenue less expenses. Subtract line 18 from line 12 Total assets (Part X, line 16) 20 21 22 I I Total liabilities (Part X, line 26) Net assets or fund balances. Subtract line 21 from line 20 Part II Signature Block Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge. M M JAMES STATEN Sign Here Signature of officer Date SR VP FINANCE/CFO Type or print name and title Print/Type preparer's name Preparer's signature Firm's address I I For Paperwork Reduction Act Notice, see the separate instructions. JSA 7E1010 1.000 V 17-7.10 Check if self-employed PTIN P00641463 13-4008324 617-530-5000 X Yes No Form 990 (2017) I mmmmmmmmmmmmmmmmmmmm LLP 101 SEAPORT BLVD., SUITE 500 BOSTON, MA 02210 May the IRS discuss this return with the preparer shown above? (see instructions) 79590J 7377 Date 05/07/2019 Paid GWEN SPENCER Preparer PRICEWATERHOUSECOOPERS Firm's name Use Only Firm's EIN Phone no. PUBLIC DISCLOSURE COPY Form 8868 Application for Automatic Extension of Time To File an Exempt Organization Return (Rev. January 2017) Department of the Treasury Internal Revenue Service I I OMB No. 1545-1709 File a separate application for each return. Information about Form 8868 and its instructions is at www.irs.gov/form8868. Electronic filing (e-file). You can electronically file Form 8868 to request a 6-month automatic extension of time to file any of the forms listed below with the exception of Form 8870, Information Return for Transfers Associated W ith Certain Personal Benefit Contracts, for which an extension request must be sent to the IRS in paper format (see instructions). For more details on the electronic filing of this form, visit www.irs.gov/efile, click on Charities & Non-Profits, and click on e-file for Charities and Non-Profits. Automatic 6-Month Extension of Time. Only submit original (no copies needed). All corporations required to file an income tax return other than Form 990-T (including 1120-C filers), partnerships, REMICs, and trusts must use Form 7004 to request an extension of time to file income tax returns. Enter filer's identifying number, see instructions Type or print File by the due date for filing your return. See instructions. Name of exempt organization or other filer, see instructions. Employer identification number (EIN) or UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Number, street, and room or suite no. If a P.O. box, see instructions. Social security number (SSN) UNIVERSITY GARDENS, UGB203 City, town or post office, state, and ZIP code. For a foreign address, see instructions. LOS ANGELES, CA 90089-8003 Enter the Return Code for the return that this application is for (file a separate application for each return) Application Is For Return Code Form 990 or Form 990-EZ Form 990-BL Form 4720 (individual) Form 990-PF Form 990-T (sec. 401(a) or 408(a) trust) Form 990-T (trust other than above) % The books are in the care of I 01 02 03 04 05 06 mmmmmmmmmmmm Application Is For 0 1 Return Code Form 990-T (corporation) Form 1041-A Form 4720 (other than individual) Form 5227 Form 6069 Form 8870 07 08 09 10 11 12 ERIK BRINK, UNIV COMPTROLLER UNIV GARDENS UGB203 LOS ANGELES CA 90089 I I 213 821-1900 Telephone No. Fax No. If the organization does not have an office or place of business in the United States, check this box If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) . If this is for the whole group, check this box . If it is for part of the group, check this box and attach a list with the names and EINs of all members the extension is for. 05/15 , 20 19 , to file the exempt organization return 1 I request an automatic 6-month extension of time until for the organization named above. The extension is for the organization’s return for: % % mmmmmmI IX I calendar year 20 tax year beginning mmmmmmmmmmmmmmmI mmmmmmmI or 07/01 , 20 17 , and ending 06/30 , 20 18 . If the tax year entered in line 1 is for less than 12 months, check reason: Initial return Final return Change in accounting period 3 a If this application is for Forms 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax, less any nonrefundable credits. See instructions. 3a $ b If this application is for Forms 990-PF, 990-T, 4720, or 6069, enter any refundable credits and estimated tax payments made. Include any prior year overpayment allowed as a credit. 3b $ c Balance due. Subtract line 3b from line 3a. Include your payment with this form, if required, by using EFTPS (Electronic Federal Tax Payment System). See instructions. 3c $ 2 0. 0. 0. Caution. If you are going to make an electronic funds withdrawal (direct debit) with this Form 8868, see Form 8453-EO and Form 8879-EO for payment instructions. For Privacy Act and Paperwork Reduction Act Notice, see instructions. JSA 7F8054 1.000 V 17-7F Form 8868 (Rev. 1-2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Page Part III 1 Statement of Program Service Accomplishments Check if Schedule O contains a response or note to any line in this Part III Briefly describe the organization's mission: mmmmmmmmmmmmmmmmmmmmmmmm 2 X SEE SCHEDULE O 2 3 4 Did the organization undertake any significant program services during the year which were not listed on the X No prior Form 990 or 990-EZ? Yes If "Yes," describe these new services on Schedule O. Did the organization cease conducting, or make significant changes in how it conducts, any program X No services? Yes If "Yes," describe these changes on Schedule O. Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 4a (Code: ) (Expenses $ 2,099,653,372. including grants of $ 557,795,463. ) (Revenue $ 2,043,454,998. ) 1,378,902,158. ) 389,306,394. ) INSTRUCTION: 20,000 STUDENTS IN UNDERGRADUATE CLASSES: 27,500 STUDENTS IN GRADUATE AND PROFESSIONAL CLASSES: 5,218 BACHELOR DEGREES CONFERRED AND 10,164 ADVANCED DEGREES CONFERRED IN 2017-2018. 4b (Code: ) (Expenses $ 1,678,183,000. including grants of $ ) (Revenue $ HEALTH CARE SERVICES: THE DOCTORS OF USC ARE MORE THAN 500 PHYSICIANS AND SPECIALISTS WHO ARE FULL-TIME FACULTY MEMBERS OF THE KECK SCHOOL OF MEDICINE OF USC. USC PHYSICIANS PRACTICE AT KECK HOSPITAL OF USC, USC NORRIS CANCER HOSPITAL, USC VERDUGO HILLS HOSPITAL, DOHENY EYE INSTITUTE, HEALTH CARE CENTERS ON THE HEALTH SCIENCES CAMPUS AND IN DOWNTOWN LOS ANGELES, AND AT LOS ANGELES COUNTY & USC MEDICAL CENTER AND CHILDRENS HOSPITAL LOS ANGELES. 4c (Code: ) (Expenses $ 461,072,000. including grants of $ ) (Revenue $ AUXILIARY ENTERPRISES: APPROXIMATELY 40,000 STUDENTS AND 16,000 FACULTY AND STAFF ARE SERVED BY THE BOOKSTORE, DINING SERVICES, HOUSING, PARKING FACILITIES AND OTHER SERVICES THAT SUPPORT EDUCATIONAL ACTIVITIES. 4d Other program services (Describe in Schedule O.) 457,666,496. including grants of $ 4,033,496. (Expenses $ 4,696,574,868. 4e Total program service expenses JSA 7E1020 1.000 79590J 7377 I ) (Revenue $ 580,276,939. ) Form V 17-7.10 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part IV Page Yes 1 Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If "Yes," complete Schedule A Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)? Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If "Yes," complete Schedule C, Part I Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If "Yes," complete Schedule C, Part II Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes," complete Schedule C, Part III Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If "Yes," complete Schedule D, Part I Did the organization receive or hold a conservation easement, including easements to preserve open space, the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part II Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes," complete Schedule D, Part III Did the organization report an amount in Part X, line 21, for escrow or custodial account liability, serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If "Yes," complete Schedule D, Part IV Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If "Yes," complete Schedule D, Part V If the organization's answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable. Did the organization report an amount for land, buildings, and equipment in Part X, line 10? If "Yes," complete Schedule D, Part VI Did the organization report an amount for investments-other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VII Did the organization report an amount for investments-program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIII Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part IX mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmm 2 3 4 5 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 6 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 7 8 9 mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmm 10 11 a b c d 3 Checklist of Required Schedules mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmm mmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m mmmmmmmmmmm mmmmmmmmmmmmm e Did the organization report an amount for other liabilities in Part X, line 25? If "Yes," complete Schedule D, Part X f Did the organization's separate or consolidated financial statements for the tax year include a footnote that addresses the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes," complete Schedule D, Part X 1 2 X X X 3 4 X X 5 6 X X 7 8 X 9 X 10 X 11a X 11b X X 11c 11d 11e No X X 11f X 12a X 12 a Did the organization obtain separate, independent audited financial statements for the tax year? If "Yes," complete Schedule D, Parts XI and XII b Was the organization included in consolidated, independent audited financial statements for the tax year? If "Yes," and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional 13 Is the organization a school described in section 170(b)(1)(A)(ii)? If "Yes," complete Schedule E 14 a Did the organization maintain an office, employees, or agents outside of the United States? b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If "Yes," complete Schedule F, Parts I and IV 15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign organization? If "Yes," complete Schedule F, Parts II and IV 16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or other assistance to or for foreign individuals? If "Yes," complete Schedule F, Parts III and IV 17 Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If "Yes," complete Schedule G, Part I (see instructions) 18 Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If "Yes," complete Schedule G, Part II 19 Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If "Yes," complete Schedule G, Part III mmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm mmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 12b 13 14a X X X 14b X 15 X 17 X 18 X 19 Form JSA 7E1021 1.000 79590J 7377 V 17-7.10 X 16 X 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part IV 20 a b 21 22 23 Page mmmmmmmmmmmmm mmmmmm mmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmm Did the organization operate one or more hospital facilities? If "Yes," complete Schedule H If "Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return? Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic government on Part IX, column (A), line 1? If "Yes," complete Schedule I, Parts I and II Did the organization report more than $5,000 of grants or other assistance to or for domestic individuals on Part IX, column (A), line 2? If "Yes," complete Schedule I, Parts I and III Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the organization's current and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes," complete Schedule J Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If "Yes," answer lines 24b through 24d and complete Schedule K. If "No," go to line 25a Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax-exempt bonds? Did the organization act as an "on behalf of" issuer for bonds outstanding at any time during the year? Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If "Yes," complete Schedule L, Part I Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization's prior Forms 990 or 990-EZ? If "Yes," complete Schedule L, Part I Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? If "Yes," complete Schedule L, Part II Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If "Yes," complete Schedule L, Part III Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions): A current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part IV A family member of a current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part IV An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner? If "Yes," complete Schedule L, Part IV Did the organization receive more than $25,000 in non-cash contributions? If "Yes," complete Schedule M Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If "Yes," complete Schedule M Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N, Part I Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes," complete Schedule N, Part II Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If "Yes," complete Schedule R, Part I Was the organization related to any tax-exempt or taxable entity? If "Yes," complete Schedule R, Part II, III, or IV, and Part V, line 1 Did the organization have a controlled entity within the meaning of section 512(b)(13)? If "Yes" to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If "Yes," complete Schedule R, Part V, line 2 Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If "Yes," complete Schedule R, Part V, line 2 Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If "Yes," complete Schedule R, Part VI Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11b and 19? Note. All Form 990 filers are required to complete Schedule O. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 24 a b c d 25 a b mmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmm mmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 26 27 28 a b c 29 30 31 32 33 34 35 a b 36 37 Yes 20a 20b X X 21 X 22 X 23 X 24a 24b X X 24c 24d X X 25a X 25b X 26 mmmmmmmmmmmmmmm 27 X 28a X mmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmm mmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mmmmm mmmmmmmmmmmmmmmmmmmmmmmmmm JSA 7E1030 1.000 V 17-7.10 X 28b X 28c 29 X 30 X X 31 X 32 X 33 X 34 35a X X 35b X 36 X 37 X 38 Form 79590J 7377 No mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 38 4 Checklist of Required Schedules (continued) X 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part V Page mmmmmmmmmmmmmmmmmmmmm 60,924 mmmmmmmmmm 0. mmmmmmmmm X mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 40,385 mm X mmmmmmm X mmmmmmmmmmm X mmmmmmmm Yes 1a 1 a Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable 1b b Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable c Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? 2 a Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax 2a Statements, filed for the calendar year ending with or within the year covered by this return b If at least one is reported on line 2a, did the organization file all required federal employment tax returns? Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file (see instructions) 3 a Did the organization have unrelated business gross income of $1,000 or more during the year? b If "Yes," has it filed a Form 990-T for this year? If "No" to line 3b, provide an explanation in Schedule O 4 a At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)? ATTACHMENT 1 b If "Yes," enter the name of the foreign country: 5a b c 6a b 7 a b c d e f g h 8 9 a b 10 a b 5 Statements Regarding Other IRS Filings and Tax Compliance Check if Schedule O contains a response or note to any line in this Part V No 1c 2b 3a 3b mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm I mmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 5a 5b 5c X X 6a X m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm 7a 7b See instructions for filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? If "Yes" to line 5a or 5b, did the organization file Form 8886-T? Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible as charitable contributions? If "Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? Organizations that may receive deductible contributions under section 170(c). Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor? If "Yes," did the organization notify the donor of the value of the goods or services provided? Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282? 7d If "Yes," indicate the number of Forms 8282 filed during the year mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm mmmmm mm mmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmm mmmmmmmmmm mmmmmmmmmmmmmm mmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmm mmmmmmmmmmmmmmmmmm Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required? If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C? Sponsoring organizations maintaining donor advised funds. Did a donor advised fund maintained by the sponsoring organization have excess business holdings at any time during the year? Sponsoring organizations maintaining donor advised funds. Did the sponsoring organization make any taxable distributions under section 4966? Did the sponsoring organization make a distribution to a donor, donor advisor, or related person? Section 501(c)(7) organizations. Enter: 10a Initiation fees and capital contributions included on Part VIII, line 12 10b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities Section 501(c)(12) organizations. Enter: 11a a Gross income from members or shareholders b Gross income from other sources (Do not net amounts due or paid to other sources 11b against amounts due or received from them.) 12 a Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041? 12b b If "Yes," enter the amount of tax-exempt interest received or accrued during the year 13 Section 501(c)(29) qualified nonprofit health insurance issuers. a Is the organization licensed to issue qualified health plans in more than one state? Note. See the instructions for additional information the organization must report on Schedule O. b Enter the amount of reserves the organization is required to maintain by the states in which 13b the organization is licensed to issue qualified health plans 13c c Enter the amount of reserves on hand 11 mmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m m m m m m m m m m m m m m m m mm mm m m m m m m m m m m m mmmmmm 14 a Did the organization receive any payments for indoor tanning services during the tax year? b If "Yes," has it filed a Form 720 to report these payments? If "No," provide an explanation in Schedule O JSA 7E1040 1.000 79590J 7377 4a 6b X X 7c X 7e 7f 7g 7h X X 8 X 9a 9b X X 12a 13a 14a 14b Form V 17-7.10 X X 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Page 6 Governance, Management, and Disclosure For each "Yes" response to lines 2 through 7b below, and for a "No" Form 990 (2017) Part VI mmmmmmmmmmmmmmmmmmmmmmmm response to line 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions. Check if Schedule O contains a response or note to any line in this Part VI X Section A. Governing Body and Management 1a Enter the number of voting members of the governing body at the end of the tax year mmmmm Yes 1a No 57 If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O. mmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mm mmmmmm mmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 52 1b b Enter the number of voting members included in line 1a, above, who are independent 2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? 3 Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors, or trustees, or key employees to a management company or other person? 4 Did the organization make any significant changes to its governing documents since the prior Form 990 was filed? 5 Did the organization become aware during the year of a significant diversion of the organization's assets? 6 Did the organization have members or stockholders? 7a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? 8 Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following: a The governing body? b Each committee with authority to act on behalf of the governing body? 9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization's mailing address? If "Yes," provide the names and addresses in Schedule O mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmm X 2 X 3 4 5 6 X X X 7a X 7b X X X 8a 8b X 9 Section B. Policies (This Section B requests information about policies not required by the Internal Revenue Code.) mmmmmmmmmmmmmmmmmmmmmmmmmm mmm m mmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmm 10 a Did the organization have local chapters, branches, or affiliates? b If "Yes," did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? 11 a Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form? b Describe in Schedule O the process, if any, used by the organization to review this Form 990. 12 a Did the organization have a written conflict of interest policy? If "No," go to line 13 b Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? c Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes," describe in Schedule O how this was done 13 Did the organization have a written whistleblower policy? 14 Did the organization have a written document retention and destruction policy? 15 Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision? a The organization's CEO, Executive Director, or top management official b Other officers or key employees of the organization If "Yes" to line 15a or 15b, describe the process in Schedule O (see instructions). 16 a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? b If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization's exempt status with respect to such arrangements? mmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Section C. Disclosure mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmm ICA,OK,WA, Yes 10a X 10b 11a X X 12a X 12b X 12c 13 14 X X X 15a 15b X X 16a X 16b X No 17 18 List the states with which a copy of this Form 990 is required to be filed Section 6104 requires an organization to make its Forms 1023 (or 1024 if applicable), 990, and 990-T (Section 501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all that apply. X Upon request Own website Another's website Other (explain in Schedule O) 19 Describe in Schedule O whether (and if so, how) the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year. State the name, address, and telephone number of the person who possesses the organization's books and records: 20 ERIK BRINK, UNIV COMPTROLLER UNIV GARDENS UGB203 LOS ANGELES, CA 90089 JSA 7E1042 1.000 79590J 7377 213-821-1900 I Form V 17-7.10 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Page 7 Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors X Check if Schedule O contains a response or note to any line in this Part VII Form 990 (2017) Part VII mmmmmmmmmmmmmmmmmmmmmmmmmmmm Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees 1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization's tax year. % % % % % List all of the organization's current officers, directors, trustees (whether individuals or organizations), regardless of amount of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid. List all of the organization's current key employees, if any. See instructions for definition of "key employee." List the organization's five current highest compensated employees (other than an officer, director, trustee, or key employee) who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the organization and any related organizations. List all of the organization's former officers, key employees, and highest compensated employees who received more than $100,000 of reportable compensation from the organization and any related organizations. List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee of the organization, more than $10,000 of reportable compensation from the organization and any related organizations. List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest compensated employees; and former such persons. Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee. (C) (A) Name and Title Position (B) X Former X Highest compensated employee 1.00 .50 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. Key employee TRUSTEE/CHAIR (AS OF 5/31/18) (2) MIRIAM ADELSON TRUSTEE (3) MICHAEL E. ADLER TRUSTEE (4) WALLIS ANNENBERG TRUSTEE (5) WANDA M. AUSTIN TRUSTEE (6) THOMAS J. BARRACK JR. TRUSTEE (7) MARC R. BENIOFF TRUSTEE (8) DAVID C. BOHNETT TRUSTEE (9) CHARLES F. BOLDEN JR. TRUSTEE (AS OF 2/7/2018) (10) JOSEPH M. BOSKOVICH SR. TRUSTEE (11) ROBERT A. BRADWAY TRUSTEE (12) JEANIE M. BUSS TRUSTEE (13) CHARLES G. CALE TRUSTEE (14) RAMONA L. CAPPELLO TRUSTEE Officer (1) RICK J. CARUSO Institutional trustee Individual trustee or director (do not check more than one Average box, unless person is both an hours per week (list any officer and a director/trustee) hours for related organizations below dotted line) (D) (E) (F) Reportable compensation from the organization (W-2/1099-MISC) Reportable compensation from related organizations (W-2/1099-MISC) Estimated amount of other compensation from the organization and related organizations 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. Form JSA 7E1041 1.000 79590J 7377 V 17-7.10 0. 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part VII Page 8 Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (A) Name and title (B) (C) Average Position (do not check more than one box, unless person is both an officer and a director/trustee) hours per week (list any hours for Former Highest compensated employee 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. Key employee ( 15) ALAN I. CASDEN TRUSTEE ( 16) RONNIE C. CHAN TRUSTEE ( 17) YANG HO CHO TRUSTEE ( 18) CHRISTOPHER COX TRUSTEE ( 19) FRANK H. CRUZ TRUSTEE ( 20) DAVID H. DORNSIFE TRUSTEE ( 21) SUZANNE DWORAK-PECK TRUSTEE ( 22) MICHELE DEDEAUX ENGEMANN TRUSTEE ( 23) DANIEL J. EPSTEIN TRUSTEE ( 24) FRANK J. FERTITTA III TRUSTEE (UNTIL 6/14/2018) ( 25) STANLEY P. GOLD TRUSTEE Officer line) Institutional trustee below dotted Individual trustee or director related organizations (D) (E) Reportable Reportable compensation compensation from from related the organizations organization (W-2/1099-MISC) (W-2/1099-MISC) (F) Estimated amount of other compensation from the organization and related organizations X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. 0. 0. 0. 0. 2,526,515. 2,526,515. m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm I m m m m m m m m m m m m m m m m m m m m m m m m m m m m II I 1b c d 2 0. Sub-total 31,099,370. Total from continuation sheets to Part VII, Section A 31,099,370. Total (add lines 1b and 1c) Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 6039 3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual mmmmmmmmmmmmmmmmmmmmmmmmmm 3 X For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual 4 X Yes No 4 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person 5 Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. 5 (A) Name and business address (B) Description of services X (C) Compensation ATTACHMENT 2 2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization 678 I JSA 7E1055 1.000 79590J 7377 V 17-7.10 Form 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part VII Page 8 Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (A) Name and title (B) (C) Average Position (do not check more than one box, unless person is both an officer and a director/trustee) hours per week (list any hours for Former Highest compensated employee 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 .50 1.00 0. 1.00 0. 1.00 0. 1.00 0. Key employee ( 26) TAMARA HUGHES GUSTAVSON TRUSTEE ( 27) JANE HARMAN TRUSTEE ( 28) MING HSIEH TRUSTEE ( 29) SUZANNE NORA JOHNSON TRUSTEE ( 30) LYDIA H. KENNARD TRUSTEE ( 31) KENNETH R. KLEIN TRUSTEE ( 32) JOHN KUSMIERSKY TRUSTEE ( 33) JAIME L. LEE TRUSTEE (AS OF 5/31/2018) ( 34) KATHY LEVENTHAL TRUSTEE ( 35) MITCHELL LEW TRUSTEE (UNTIL 5/31/2018) ( 36) WILLIAM J. MCMORROW TRUSTEE Officer line) Institutional trustee below dotted Individual trustee or director related organizations (D) (E) Reportable Reportable compensation compensation from from related the organizations organization (W-2/1099-MISC) (W-2/1099-MISC) (F) Estimated amount of other compensation from the organization and related organizations X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm I m m m m m m m m m m m m m m m m m m m m m m m m m m m m II I 1b c d 2 Sub-total Total from continuation sheets to Part VII, Section A Total (add lines 1b and 1c) Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 6039 3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual mmmmmmmmmmmmmmmmmmmmmmmmmm 3 X For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual 4 X Yes No 4 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person 5 Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. 5 (A) Name and business address 2 (B) Description of services X (C) Compensation Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization I JSA 7E1055 1.000 79590J 7377 V 17-7.10 Form 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part VII Page 8 Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (A) Name and title (B) (C) Average Position (do not check more than one box, unless person is both an officer and a director/trustee) hours per week (list any hours for Former X Highest compensated employee 1.00 .50 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 50.00 1.50 1.00 0. 1.00 0. 1.00 0. 1.00 0. Key employee ( 37) JOHN MORK TRUSTEE/CHAIR (UNTIL 5/30/18) ( 38) OSCAR MUNOZ TRUSTEE (AS OF 3/25/2018) ( 39) ROD Y. NAKAMOTO TRUSTEE ( 40) CARMEN NAVA TRUSTEE ( 41) SHELLY L. NEMIROVSKY TRUSTEE ( 42) DOMINIC NG TRUSTEE ( 43) CHRYSOSTOMOS L. NIKIAS PRESIDENT/TRUSTEE ( 44) J. KRISTOFFER POPOVICH TRUSTEE ( 45) BLAKE QUINN TRUSTEE ( 46) EDWARD P. ROSKI JR. TRUSTEE ( 47) AMY A. ROSS TRUSTEE Officer line) Institutional trustee below dotted Individual trustee or director related organizations X (D) (E) Reportable Reportable compensation compensation from from related the organizations organization (W-2/1099-MISC) (W-2/1099-MISC) (F) Estimated amount of other compensation from the organization and related organizations 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. 1,706,942. 0. 857,016. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X X m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm I m m m m m m m m m m m m m m m m m m m m m m m m m m m m II I 1b c d 2 Sub-total Total from continuation sheets to Part VII, Section A Total (add lines 1b and 1c) Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 6039 3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual mmmmmmmmmmmmmmmmmmmmmmmmmm 3 X For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual 4 X Yes No 4 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person 5 Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. 5 (A) Name and business address 2 (B) Description of services X (C) Compensation Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization I JSA 7E1055 1.000 79590J 7377 V 17-7.10 Form 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part VII Page 8 Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (A) Name and title (B) (C) Average Position (do not check more than one box, unless person is both an officer and a director/trustee) hours per week (list any hours for Former Highest compensated employee 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. 1.00 0. Key employee ( 48) FREDERICK J. RYAN JR. TRUSTEE ( 49) LEONARD D. SCHAEFFER TRUSTEE ( 50) WILLIAM E.B. SIART TRUSTEE ( 51) JEFFREY H. SMULYAN TRUSTEE ( 52) STEVEN SPIELBERG TRUSTEE ( 53) HELIANE M. STEDEN TRUSTEE ( 54) MARK A. STEVENS TRUSTEE ( 55) RONALD D. SUGAR TRUSTEE ( 56) TRACY M. SYKES TRUSTEE ( 57) RATAN N. TATA TRUSTEE (UNTIL 5/31/2018) ( 58) DANIEL M. TSAI TRUSTEE Officer line) Institutional trustee below dotted Individual trustee or director related organizations (D) (E) Reportable Reportable compensation compensation from from related the organizations organization (W-2/1099-MISC) (W-2/1099-MISC) (F) Estimated amount of other compensation from the organization and related organizations X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm I m m m m m m m m m m m m m m m m m m m m m m m m m m m m II I 1b c d 2 Sub-total Total from continuation sheets to Part VII, Section A Total (add lines 1b and 1c) Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 6039 3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual mmmmmmmmmmmmmmmmmmmmmmmmmm 3 X For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual 4 X Yes No 4 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person 5 Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. 5 (A) Name and business address 2 (B) Description of services X (C) Compensation Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization I JSA 7E1055 1.000 79590J 7377 V 17-7.10 Form 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part VII Page 8 Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (A) Name and title (B) (C) Average Position (do not check more than one box, unless person is both an officer and a director/trustee) hours per week (list any hours for Former Highest compensated employee 1.00 0. 1.00 0. 50.00 .50 50.00 .50 50.00 1.25 50.00 .25 50.00 0. 50.00 .50 50.00 .75 50.00 .75 50.00 0. Key employee ( 59) RONALD N. TUTOR TRUSTEE ( 60) WENXUE WANG TRUSTEE ( 61) MICHAEL QUICK PROVOST/SR VP ACADEMIC AFFAIRS ( 62) TODD R. DICKEY SR VP, ADMINISTRATION ( 63) JAMES M. STATEN SR VP, FINANCE & CFO ( 64) ALBERT R. CHECCIO SR VP, UNIVERSITY ADVANCEMENT ( 65) THOMAS S. SAYLES SR VP, UNIV RELATIONS ( 66) THOMAS E. JACKIEWICZ SVP & CEO FOR KECK MEDICINE ( 67) CAROL MAUCH AMIR SVP & GEN COUNSEL/SECRETARY ( 68) JAMES G. ELLIS DEAN-MARSHALL SCHOOL OF BUS. ( 69) LISA ANN MAZZOCCO CHIEF INVESTMENT OFFICER Officer line) Institutional trustee below dotted Individual trustee or director related organizations (D) (E) Reportable Reportable compensation compensation from from related the organizations organization (W-2/1099-MISC) (W-2/1099-MISC) (F) Estimated amount of other compensation from the organization and related organizations X 0. 0. 0. X 0. 0. 0. X 917,798. 0. 37,655. X 833,976. 0. 39,646. X 1,800,032. 0. 157,605. X 1,078,358. 0. 293,138. X 533,402. 0. 38,816. X 2,322,895. 0. 42,215. X 754,162. 0. 59,411. X 653,720. 0. 47,703. X 1,105,960. 0. 123,798. m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm I m m m m m m m m m m m m m m m m m m m m m m m m m m m m II I 1b c d 2 Sub-total Total from continuation sheets to Part VII, Section A Total (add lines 1b and 1c) Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 6039 3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual mmmmmmmmmmmmmmmmmmmmmmmmmm 3 X For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual 4 X Yes No 4 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person 5 Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. 5 (A) Name and business address 2 (B) Description of services X (C) Compensation Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization I JSA 7E1055 1.000 79590J 7377 V 17-7.10 Form 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part VII Page 8 Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (A) Name and title (B) (C) Average Position (do not check more than one box, unless person is both an officer and a director/trustee) hours per week (list any hours for Former Highest compensated employee 50.00 0. 50.00 .75 50.00 .75 50.00 .50 40.00 0. 40.00 0. 40.00 0. 40.00 .50 40.00 0. 40.00 0. 40.00 0. Key employee ( 70) AMBER MILLER SEE SCHEDULE O FOR TITLE ( 71) LAURA MOSQUEDA SEE SCHEDULE O FOR TITLE ( 72) ROHIT VARMA, MD SEE SCHEDULE O FOR TITLE ( 73) YANNIS C. YORTSOS DEAN-VITERBI SCHOOL OF ENG. ( 74) CHARLES HELTON HEAD FOOTBALL COACH ( 75) VAUGHN A. STARNES, MD CHAIR & DIST PROF SURGERY ( 76) ANDY ENFIELD HEAD BASKETBALL COACH ( 77) INDERBIR SINGH GILL, MD PROF & CHAIR - UROLOGY ( 78) LOUIS A. VANDERMOLEN MD PROFESSOR OF CLINICAL MEDICINE ( 79) DANI BYRD SEE SCHEDULE O FOR TITLE ( 80) STEVE A. KAY SEE SCHEDULE O FOR TITLE Officer line) Institutional trustee below dotted Individual trustee or director related organizations (D) (E) Reportable Reportable compensation compensation from from related the organizations organization (W-2/1099-MISC) (W-2/1099-MISC) (F) Estimated amount of other compensation from the organization and related organizations X 582,856. 0. 60,354. X 524,352. 0. 40,308. X 1,423,257. 0. 48,210. X 521,880. 0. 56,917. X 3,111,485. 0. 107,450. X 2,773,169. 0. 58,999. X 2,732,358. 0. 56,790. X 2,594,021. 0. 113,943. X 2,165,844. 0. 48,286. X 356,363. 0. 108,528. X 777,494. 0. 82,633. m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm I m m m m m m m m m m m m m m m m m m m m m m m m m m m m II I 1b c d 2 Sub-total Total from continuation sheets to Part VII, Section A Total (add lines 1b and 1c) Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 6039 3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual mmmmmmmmmmmmmmmmmmmmmmmmmm 3 X For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual 4 X Yes No 4 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person 5 Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. 5 (A) Name and business address 2 (B) Description of services X (C) Compensation Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization I JSA 7E1055 1.000 79590J 7377 V 17-7.10 Form 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part VII Page 8 Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (A) Name and title (B) (C) Average Position (do not check more than one box, unless person is both an officer and a director/trustee) hours per week (list any hours for Former 30.00 0. Highest compensated employee Key employee ( 81) CARMEN A. PULIAFITO, MD SEE SCHEDULE O FOR TITLE Officer line) Institutional trustee below dotted Individual trustee or director related organizations X (D) (E) Reportable Reportable compensation compensation from from related the organizations organization (W-2/1099-MISC) (W-2/1099-MISC) 1,829,046. (F) Estimated amount of other compensation from the organization and related organizations 0. 47,094. m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm I m m m m m m m m m m m m m m m m m m m m m m m m m m m m II I 1b c d 2 Sub-total Total from continuation sheets to Part VII, Section A Total (add lines 1b and 1c) Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 6039 3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual mmmmmmmmmmmmmmmmmmmmmmmmmm 3 X For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual 4 X Yes No 4 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person 5 Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. 5 (A) Name and business address 2 (B) Description of services X (C) Compensation Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization I JSA 7E1055 1.000 79590J 7377 V 17-7.10 Form 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA Statement of Revenue Form 990 (2017) Part VIII Check if Schedule O contains a response or note to any line in this Part VIII Contributions, Gifts, Grants Program Service Revenue and Other Similar Amounts (A) Total revenue mmmmmmmm mmmmmmmmmm mmmmmmmmm mmmmmmmm mm m mmmmmmmmmmmmmmmmmmI Federated campaigns 1a b Membership dues 1b c Fundraising events 1c d Related organizations 1d e Government grants (contributions) 1e 356,342,918. f All other contributions, gifts, grants, 1f 570,495,639. 1a and similar amounts not included above g h 95-1642394 Page 9 mmmmmmmmmmmmmmmmmmmmmmmm (B) Related or exempt function revenue (C) Unrelated business revenue (D) Revenue excluded from tax under sections 512-514 1,119,420. Noncash contributions included in lines 1a-1f: $ 66,521,426. Total. Add lines 1a-1f 927,957,977. Business Code TUITION & FEES 900099 2,043,454,998. 2,043,454,998. b NET PATIENT SERVICE REVENUE 900099 1,378,902,158. 1,378,902,158. c AUXILIARY ENTERPRISES 900099 389,306,394. 372,897,454. d PROFESSIONAL SERVICES AGREEMENT 900099 138,699,957. 138,699,957. e SALES & SERVICE 900099 163,050,372. 125,523,769. f g All other program service revenue Total. Add lines 2a-2f 278,526,610. 278,526,610. 2a m m m m m m mm mm mm mm mm m m m m m m m I mmmmmmmmmmmmmmmmI m m m m m m m m m m m m m m m m m m m m m m m mm II mmmmmmmm mmm m mm m m m m m m m m m m m m m m m I Investment 3 income (including dividends, 4,391,940,489. 58,143,179. Income from investment of tax-exempt bond proceeds Royalties 6a Less: rental expenses c d Rental income or (loss) Net rental income or (loss) Gross amount from sales of assets other than inventory b (i) Real (ii) Personal (i) Securities (ii) Other 220,682,800. 1,534,995. -23,674,784. 81,817,963. 0. 3,558,750. 3,558,750. Gross rents b 7a 37,526,603. interest, and other similar amounts) 4 5 16,408,940. 0. Less: cost or other basis mmmm m m mm mm mm mm mm m m m m m m m m m m m m m m m and sales expenses Other Revenue c d 8a Gain or (loss) Net gain or (loss) 220,682,800. Gross income from fundraising events (not including $ 1,534,995. I 222,217,795. -284,526. 222,502,321. 1,119,420. of contributions reported on line 1c). See Part IV, line 18 b c 9a b c 10a b c mmmmmmmmmmm mmmmmmmmmm mmmmmmm I mmmmmmmmmmm mmmmmmmmmm mmmmmmm I mmmmmmmmm mmmmmmmmmmmmmmmmm I a 212,300. b Less: direct expenses Net income or (loss) from fundraising events 1,093,985. Gross income from gaming activities. See Part IV, line 19 -881,685. a b Less: direct expenses Net income or (loss) from gaming activities Gross sales of inventory, returns and allowances 0. less a b Less: cost of goods sold Net income or (loss) from sales of inventory Miscellaneous Revenue -881,685. 0. Business Code 11a b c mmmmmmmmmmmmm m m m mm mm mm mm mm mm mm mm mm mm mm mm mm I I d All other revenue e Total. Add lines 11a-11d Total revenue. See instructions. 12 JSA 7E1051 1.000 79590J 7377 0. 5,602,936,505. V 17-7.10 4,338,004,946. 29,976,233. 306,997,349. Form 990 (2017) PUBLIC DISCLOSURE COPY Form 990 (2017) UNIVERSITY OF SOUTHERN CALIFORNIA Part IX Statement of Functional Expenses 95-1642394 Page 10 Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A). Check if Schedule O contains a response or note to any line in this Part IX mmmmmmmmmmmmmmmmmmmmmmmm Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII. (A) Total expenses (B) Program service expenses (C) Management and general expenses (D) Fundraising expenses 1 Grants and other assistance to domestic organizations mmmm mmmmmmmmm and domestic governments. See Part IV, line 21 2 Grants and other assistance individuals. See Part IV, line 22 to domestic 3 Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 mmmmm mmmmmmmmm mmmmmmmmmm 4 Benefits paid to or for members 5 Compensation of current officers, directors, trustees, and key employees 1,674,913. 1,674,913. 556,120,550. 556,120,550. 4,033,496. 0. 4,033,496. 16,497,133. 7,334,059. 6,301,514. 2,861,560. 754,188. 442,155. 2,182,704,751. 1,988,444,136. 46,249. 160,555,955. 265,784. 33,704,660. 25,739,612. 33,562,459. 11,697,762. 3,938,855. 5,042,215. 1,790,073. 6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and mmmmmm mmmmmmmmmmmm persons described in section 4958(c)(3)(B) 7 Other salaries and wages 8 Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) mmmmmmmmmmmm mmmmmmmmmmmmmmmmmm m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmm m mmmmmmmmm mmmmmm m m m m m mm mm mm mm mm mm mm mm mm mm mm mmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmm 9 Other employee benefits Payroll taxes 10 Fees for services (non-employees): a Management 11 b Legal c Accounting d Lobbying e Professional fundraising services. See Part IV, line 17 f Investment management fees g Other. 208,359,755. 273,293,872. 94,692,289. 0. 14,422,360. 2,592,871. 423,124. 643,214. 15,427,534. 178,681,288. 234,689,198. 81,204,454. 14,422,360. 2,592,871. 423,124. 643,214. 15,427,534. (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O.) 12 Advertising and promotion 13 Office expenses 14 Information technology 15 Royalties 16 Occupancy 17 Travel 18 Payments of travel or entertainment expenses for any federal, state, or local public officials 19 Conferences, conventions, and meetings 20 Interest 21 Payments to affiliates 22 Depreciation, depletion, and amortization 23 Insurance 24 Other mmmm mmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmm mmmm mmmmmmmmmmmmmmmmmmm expenses. Itemize expenses not 0. 0. 1,130,060,198. 1,051,326,606. 0. 0. 42,049,025. 37,877,734. 63,995,384. 60,094,370. 0. 0. 63,009,930. 0. 261,391,543. 1,920,652. 64,715,379. 14,018,213. 3,650,013. 3,057,638. 521,278. 843,376. 49,173,372. 13,815,119. 21,439. 238,617,543. 20,623,000. 1,920,652. 2,151,000. covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.) a COST OF GOODS SOLD SERVICES c SETTLEMENT 137,084,737. 69,353,133. 215,000,000. b UNIVERSITY 137,084,737. 69,353,133. 215,000,000. d e All other expenses 25 Total functional expenses. Add lines 1 through 24e 26 Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720) JSA 7E1052 1.000 79590J 7377 m Im m m m m m 5,355,504,652. 4,696,574,868. 593,128,117. 65,801,667. 0. Form V 17-7.10 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part X 1 2 3 4 5 Net Assets or Fund Balances Liabilities Assets 6 Page Balance Sheet Check if Schedule O contains a response or note to any line in this Part X mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmm Cash - non-interest-bearing Savings and temporary cash investments Pledges and grants receivable, net Accounts receivable, net Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L mmmmmmmmmmmmmmmmmmmmmmmmm Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions). Complete Part II of Schedule L m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm Notes and loans receivable, net Inventories for sale or use Prepaid expenses and deferred charges Land, buildings, and equipment: cost or 6727169986. 10a other basis. Complete Part VI of Schedule D 2583790203. 10b b Less: accumulated depreciation 11 Investments - publicly traded securities 12 Investments - other securities. See Part IV, line 11 13 Investments - program-related. See Part IV, line 11 14 Intangible assets 15 Other assets. See Part IV, line 11 16 Total assets. Add lines 1 through 15 (must equal line 34) 17 Accounts payable and accrued expenses 18 Grants payable 19 Deferred revenue 20 Tax-exempt bond liabilities 21 Escrow or custodial account liability. Complete Part IV of Schedule D 22 Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified persons. Complete Part II of Schedule L 23 Secured mortgages and notes payable to unrelated third parties 24 Unsecured notes and loans payable to unrelated third parties 25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D Total liabilities. Add lines 17 through 25 26 X and Organizations that follow SFAS 117 (ASC 958), check here complete lines 27 through 29, and lines 33 and 34. 7 8 9 10 a 27 28 29 (A) Beginning of year 0. 777,207,754. 628,632,992. 391,791,568. (B) End of year 1 2 3 4 0. 814,021,656. 570,185,428. 444,221,850. 8,553,152. 5 7,470,740. 0. 64,396,931. 19,811,865. 269,094,178. 6 7 8 9 0. 61,114,437. 21,883,068. 256,889,464. 3,977,373,091. 10c 4,143,379,783. 2,932,770,464. 11 3,166,078,983. 2,207,661,364. 12 2,395,739,727. 0. 13 0. 0. 14 0. 295,625,063. 15 314,465,605. 11572918422. 16 12195450741. 588,008,102. 17 758,227,001. 0. 18 0. 246,640,741. 19 261,893,736. 185,761,743. 20 183,154,803. 0. 21 0. mmmmmmmmmmmmmm mmmmmmm mmmmmmmmm 17,500,000. 22 17,500,000. 1,421,593,464. 23 1,421,839,869. 0. 24 0. m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm I mmmmmmmmmmmmmmmmmmmmmmmmmmmmm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm I mmmmmmmmmmmmmmmm mmmmmmmm mmmm m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm Unrestricted net assets Temporarily restricted net assets Permanently restricted net assets Capital stock or trust principal, or current funds Paid-in or capital surplus, or land, building, or equipment fund Retained earnings, endowment, accumulated income, or other funds Total net assets or fund balances Total liabilities and net assets/fund balances JSA 7E1053 1.000 79590J 7377 mmmmmmmmmmmmmmmmmmmmm mmmmmmmmmm mmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmm mmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmm Organizations that do not follow SFAS 117 (ASC 958), check here complete lines 30 through 34. 30 31 32 33 34 11 V 17-7.10 689,016,702. 25 659,747,195. 3,148,520,752. 26 3,302,362,604. 4,127,768,086. 27 4,113,028,836. 1,912,395,980. 28 2,128,686,567. 2,384,233,604. 29 2,651,372,734. and 30 31 32 8,424,397,670. 33 11572918422. 34 8,893,088,137. 12195450741. Form 990 (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Form 990 (2017) Part XI 1 2 3 4 5 6 7 8 9 10 Page m m m m m m m m m m m m5,602,936,505. mmmmmmmm X mmmmmmmmmmmmmmmmmmmmmmm 5,355,504,652. mmmmmmmmmmmmmmmmmmmmmmm 247,431,853. mmmmmmmmmmmmmmmmmmmmmmmmmm 8,424,397,670. mmmmm 219,468,244. mmmmmmmmmmmmmmmmmmmmmmmmmmmmm 0. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 0. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 0. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 1,790,370. mmmmmmmmmmmmmmmm 8,893,088,137. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Financial Statements and Reporting Check if Schedule O contains a response or note to any line in this Part XII m m m m m m m m m m m m m m m m m m m Total revenue (must equal Part VIII, column (A), line 12) Total expenses (must equal Part IX, column (A), line 25) Revenue less expenses. Subtract line 2 from line 1 Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) Net unrealized gains (losses) on investments Donated services and use of facilities Investment expenses Prior period adjustments Other changes in net assets or fund balances (explain in Schedule O) Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 33, column (B)) Part XII 1 2 3 4 5 6 7 8 9 10 Yes 1 12 Reconciliation of Net Assets Check if Schedule O contains a response or note to any line in this Part XI No X Accrual Accounting method used to prepare the Form 990: Cash Other If the organization changed its method of accounting from a prior year or checked "Other," explain in Schedule O. mmmmmmm 2a mmmmmmmmmmmmmm 2b X 2c X 3a X 2 a Were the organization's financial statements compiled or reviewed by an independent accountant? If "Yes," check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both: Separate basis Consolidated basis Both consolidated and separate basis b Were the organization's financial statements audited by an independent accountant? If "Yes," check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both: Separate basis X Consolidated basis Both consolidated and separate basis c If "Yes" to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant? If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O. 3 a As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? b If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 3b Form JSA 7E1054 1.000 79590J 7377 X V 17-7.10 X 990 (2017) PUBLIC DISCLOSURE COPY SCHEDULE A OMB No. 1545-0047 Public Charity Status and Public Support (Form 990 or 990-EZ) Complete if the organization is a section 501(c)(3) organization or a section 4947(a)(1) nonexempt charitable trust. Department of the Treasury Internal Revenue Service I I Attach to Form 990 or Form 990-EZ. Go to www.irs.gov/Form990 for instructions and the latest information. Name of the organization À¾µ» Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Reason for Public Charity Status (All organizations must complete this part.) See instructions. Part I The organization is not a private foundation because it is: (For lines 1 through 12, check only one box.) 1 A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i). 2 X A school described in section 170(b)(1)(A)(ii). (Attach Schedule E (Form 990 or 990-EZ).) 3 A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii). 4 A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state: 5 An organization operated for the benefit of a college or university owned or operated by a governmental unit described in section 170(b)(1)(A)(iv). (Complete Part II.) 6 A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v). 7 An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.) 8 A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.) 9 An agricultural research organization described in section 170(b)(1)(A)(ix) operated in conjunction with a land-grant college or university or a non-land-grant college of agriculture (see instructions). Enter the name, city, and state of the college or university: 10 An organization that normally receives: (1) more than 331/3 % of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions - subject to certain exceptions, and (2) no more than 331/3 %of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.) 11 An organization organized and operated exclusively to test for public safety. See section 509(a)(4). 12 An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box in lines 12a through 12d that describes the type of supporting organization and complete lines 12e, 12f, and 12g. Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must complete Part IV, Sections A and B. Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C. Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E. Type III non-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V. Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization. Enter the number of supported organizations Provide the following information about the supported organization(s). a b c d e mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm f g (i) Name of supported organization (ii) EIN (iii) Type of organization (described on lines 1-10 above (see instructions)) (iv) Is the organization listed in your governing document? Yes (v) Amount of monetary support (see instructions) (vi) Amount of other support (see instructions) No (A) (B) (C) (D) (E) Total For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. JSA 7E1210 1.000 79590J 7377 V 17-7.10 Schedule A (Form 990 or 990-EZ) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule A (Form 990 or 990-EZ) 2017 Page 2 Part II Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.) Section A. Public Support Calendar year (or fiscal year beginning in) 1 2 I Gifts, grants, contributions, and membership fees received. (Do not 1,029,935,649. include any "unusual grants.") mmmmmm (b) 2014 848,646,377. (c) 2015 898,061,389. (d) 2016 (e) 2017 937,415,378. (f) Total 927,957,977. 4,642,016,770. Tax revenues levied for the organization's benefit and either paid to or expended on its behalf mmmmmmm 3 The value of services or facilities furnished by a governmental unit to the organization without charge 4 Total. Add lines 1 through 3 5 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f) Public support. Subtract line 5 from line 4 6 (a) 2013 mmmmmmm mmmmmmm 0. 0. 1,029,935,649. 848,646,377. 898,061,389. 937,415,378. 927,957,977. 4,642,016,770. mmmmmmm 0. 4,642,016,770. Section B. Total Support m m m m m m m m m mIm Calendar year (or fiscal year beginning in) 7 8 (a) 2013 1,029,935,649. Amounts from line 4 Gross income from interest, dividends, payments received on securities loans, rents, royalties, and income from 50,425,076. similar sources mmmmmmmmmmmmm 9 10 (b) 2014 (c) 2015 (d) 2016 (e) 2017 848,646,377. 898,061,389. 937,415,378. 48,389,710. 50,753,408. 69,068,688. (f) Total 927,957,977. 4,642,016,770. 61,701,929. 280,338,811. Net income from unrelated business activities, whether or not the business is regularly carried on mmmmmmmmmm Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) mmmmmmmmmmm mm 0. 320,233. 101,404. 493,675. 202,411. 212,300. 1,330,023. 11 12 Total support. Add lines 7 through 10 13 First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here 4,923,685,604. mmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm I Section C. Computation of Public Support Percentage 94.28 mmmmmmmmm 93.88 mmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmm I X mmmmmmmmmmmmmmmmmmm I Gross receipts from related activities, etc. (see instructions) 12 15,391,689,800. 14 14 Public support percentage for 2017 (line 6, column (f) divided by line 11, column (f)) 15 15 Public support percentage from 2016 Schedule A, Part II, line 14 16a 33 1/3 % support test - 2017. If the organization did not check the box on line 13, and line 14 is 33 1/3 % or more, check this box and stop here. The organization qualifies as a publicly supported organization b 33 1/3 % support test - 2016. If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3 % or more, check this box and stop here. The organization qualifies as a publicly supported organization 17a 10%-facts-and-circumstances test - 2017. If the organization did not check a box on line 13, 16a, or 16b, and line 14 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported organization b 10%-facts-and-circumstances test - 2016. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported organization 18 Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see instructions % % mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm I mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm I mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm I Schedule A (Form 990 or 990-EZ) 2017 JSA 7E1220 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule A (Form 990 or 990-EZ) 2017 Page 3 Support Schedule for Organizations Described in Section 509(a)(2) (Complete only if you checked the box on line 10 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.) Section A. Public Support Part III Calendar year (or fiscal year beginning in) 1 I (a) 2013 (b) 2014 (c) 2015 (d) 2016 (e) 2017 (f) Total (a) 2013 (b) 2014 (c) 2015 (d) 2016 (e) 2017 (f) Total Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") 2 Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose 3 mmmmmm m Gross receipts from activities that are not an unrelated trade or business under section 513 4 Tax revenues levied for the organization’s benefit and either paid to or expended on its behalf 5 The value of services mmmmmmmm or facilities furnished by a governmental unit to the organization without charge 6 Total. Add lines 1 through 5 mmmmmmm mmmmmmm mmmm 7 a Amounts included on lines 1, 2, and 3 received from disqualified persons b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year mmmmmmmmmmm mmmmmmmmmmmmmmmmm Section B. Total Support m m m m m m m m m m Im 8 c Add lines 7a and 7b Public support. (Subtract line 7c from line 6.) Calendar year (or fiscal year beginning in) 9 Amounts from line 6 10 a Gross income from interest, dividends, payments received on securities loans, rents, royalties, and income from similar sources mmmmmmmmmmmmmmmmm b Unrelated business taxable income (less section 511 taxes) from businesses mmmmmm mmmmmmmmm acquired after June 30, 1975 c Add lines 10a and 10b 11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) mmmmmmmmmmmmmmmm 12 mmmmmmmmmmm mmmmmmmmmmmmmmmm 13 Total support. (Add lines 9, 10c, 11, 14 First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) and 12.) organization, check this box and stop here m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m mI m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm Section C. Computation of Public Support Percentage 15 Public support percentage for 2017 (line 8, column (f) divided by line 13, column (f)) 15 16 Public support percentage from 2016 Schedule A, Part III, line 15 16 Section D. Computation of Investment Income Percentage mmmmmmmmmm mmmmmmmmmmmmmmmmmmmm 17 Investment income percentage for 2017 (line 10c, column (f) divided by line 13, column (f)) 17 18 Investment income percentage from 2016 Schedule A, Part III, line 17 18 % % % % 19 a 33 1/3 % support tests - 2017. If the organization did not check the box on line 14, and line 15 is more than 33 1/3 %, and line 17 is not more than 33 1/3 %, check this box and stop here. The organization qualifies as a publicly supported organization mI I I b 33 1/3 % support tests - 2016. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3 %, and 20 line 18 is not more than 33 1/3 %, check this box and stop here. The organization qualifies as a publicly supported organization Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions JSA 7E1221 1.000 79590J 7377 Schedule A (Form 990 or 990-EZ) 2017 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule A (Form 990 or 990-EZ) 2017 Page 4 Supporting Organizations (Complete only if you checked a box in line 12 on Part I. If you checked 12a of Part I, complete Sections A and B. If you checked 12b of Part I, complete Sections A and C. If you checked 12c of Part I, complete Sections A, D, and E. If you checked 12d of Part I, complete Sections A and D, and complete Part V.) Section A. All Supporting Organizations Yes No Part IV 1 2 3a b c 4a b c 5a b c Are all of the organization's supported organizations listed by name in the organization's governing documents? If "No," describe in Part VI how the supported organizations are designated. If designated by class or purpose, describe the designation. If historic and continuing relationship, explain. 1 Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If "Yes," explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2). 2 Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If "Yes," answer (b) and (c) below. 3a Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If "Yes," describe in Part VI when and how the organization made the determination. 3b Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? If "Yes," explain in Part VI what controls the organization put in place to ensure such use. Was any supported organization not organized in the United States ("foreign supported organization")? If "Yes," and if you checked 12a or 12b in Part I, answer (b) and (c) below. Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If "Yes," describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations. 4b Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If "Yes," explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes. 4c Did the organization add, substitute, or remove any supported organizations during the tax year? If "Yes," answer (b) and (c) below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed; (ii) the reasons for each such action; (iii) the authority under the organization's organizing document authorizing such action; and (iv) how the action was accomplished (such as by amendment to the organizing document). 5a Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization's organizing document? Substitutions only. Was the substitution the result of an event beyond the organization's control? 3c 4a 5b 5c Did the organization provide support (whether in the form of grants or the provision of services or facilities) to 6 anyone other than (i) its supported organizations, (ii) individuals that are part of the charitable class benefited by one or more of its supported organizations, or (iii) other supporting organizations that also support or 7 8 9a b c 10 a b benefit one or more of the filing organization’s supported organizations? If "Yes," provide detail in Part VI. 6 Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (defined in section 4958(c)(3)(C)), a family member of a substantial contributor, or a 35% controlled entity with regard to a substantial contributor? If "Yes," complete Part I of Schedule L (Form 990 or 990-EZ). 7 Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If "Yes," complete Part I of Schedule L (Form 990 or 990-EZ). Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If "Yes," provide detail in Part VI. Did one or more disqualified persons (as defined in line 9a) hold a controlling interest in any entity in which the supporting organization had an interest? If "Yes," provide detail in Part VI. Did a disqualified person (as defined in line 9a) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If "Yes," provide detail in Part VI. Was the organization subject to the excess business holdings rules of section 4943 because of section 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If "Yes," answer 10b below. Did the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings.) JSA 8 9a 9b 9c 10a 10b Schedule A (Form 990 or 990-EZ) 2017 7E1229 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule A (Form 990 or 990-EZ) 2017 Part IV Page 5 Supporting Organizations (continued) Yes No 11 a b c Has the organization accepted a gift or contribution from any of the following persons? A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization? A family member of a person described in (a) above? A 35% controlled entity of a person described in (a) or (b) above? If “Yes” to a, b, or c, provide detail in Part VI. 11a 11b 11c Section B. Type I Supporting Organizations Yes No 1 2 Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization's directors or trustees at all times during the tax year? If "No," describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization's activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year. 1 Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If "Yes," explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised, or controlled the supporting organization. 2 Section C. Type II Supporting Organizations Yes No Were a majority of the organization's directors or trustees during the tax year also a majority of the directors or trustees of each of the organization's supported organization(s)? If "No," describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s). 1 1 Section D. All Type III Supporting Organizations Yes No 1 Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization's tax year, (i) a written notice describing the type and amount of support provided during the prior tax year, (ii) a copy of the Form 990 that was most recently filed as of the date of notification, and (iii) copies of the organization's governing documents in effect on the date of notification, to the extent not previously provided? 1 2 Were any of the organization's officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If "No," explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s). 2 3 By reason of the relationship described in (2), did the organization's supported organizations have a significant voice in the organization's investment policies and in directing the use of the organization's income or assets at all times during the tax year? If "Yes," describe in Part VI the role the organization's supported organizations played in this regard. 3 Section E. Type III Functionally Integrated Supporting Organizations 1 a b c 2 a b 3 a b Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions). The organization satisfied the Activities Test. Complete line 2 below. The organization is the parent of each of its supported organizations. Complete line 3 below. The organization supported a governmental entity. Describe in Part VI how you supported a government entity (see instructions). Yes No Activities Test. Answer (a) and (b) below. Did substantially all of the organization's activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If "Yes," then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities. 2a Did the activities described in (a) constitute activities that, but for the organization's involvement, one or more of the organization's supported organization(s) would have been engaged in? If "Yes," explain in Part VI the reasons for the organization's position that its supported organization(s) would have engaged in these activities but for the organization's involvement. 2b Parent of Supported Organizations. Answer (a) and (b) below. Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI. Did the organization exercise a substantial degree of direction over the policies, programs, and activities of each of its supported organizations? If "Yes," describe in Part VI the role played by the organization in this regard. 3a 3b Schedule A (Form 990 or 990-EZ) 2017 JSA 7E1230 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule A (Form 990 or 990-EZ) 2017 Part V Page 6 Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970 (explain in Part VI). See instructions. All other Type III non-functionally integrated supporting organizations must complete Sections A through E. (B) Current Year Section A - Adjusted Net Income (A) Prior Year (optional) 1 Net short-term capital gain 1 2 Recoveries of prior-year distributions 2 3 Other gross income (see instructions) 3 4 Add lines 1 through 3. 4 5 Depreciation and depletion 5 1 6 Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions) 7 Other expenses (see instructions) 8 Adjusted Net Income (subtract lines 5, 6, and 7 from line 4). 6 7 8 (A) Prior Year Section B - Minimum Asset Amount 1 Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year): a Average monthly value of securities b Average monthly cash balances c Fair market value of other non-exempt-use assets d Total (add lines 1a, 1b, and 1c) e Discount claimed for blockage or other factors (explain in detail in Part VI): 2 Acquisition indebtedness applicable to non-exempt-use assets 3 Subtract line 2 from line 1d. 4 Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions). 5 Net value of non-exempt-use assets (subtract line 4 from line 3) 6 Multiply line 5 by .035. 7 Recoveries of prior-year distributions 8 Minimum Asset Amount (add line 7 to line 6) (B) Current Year (optional) 1a 1b 1c 1d 2 3 4 5 6 7 8 Current Year Section C - Distributable Amount Adjusted net income for prior year (from Section A, line 8, Column A) 1 Enter 85% of line 1. 2 Minimum asset amount for prior year (from Section B, line 8, Column A) 3 Enter greater of line 2 or line 3. 4 Income tax imposed in prior year 5 6 Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions). 6 7 Check here if the current year is the organization's first as a non-functionally integrated Type III supporting organization (see instructions). 1 2 3 4 5 Schedule A (Form 990 or 990-EZ) 2017 JSA 7E1231 2.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule A (Form 990 or 990-EZ) 2017 Part V Page 7 Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations (continued) Section D - Distributions 1 Amounts paid to supported organizations to accomplish exempt purposes 2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity 3 Administrative expenses paid to accomplish exempt purposes of supported organizations 4 Amounts paid to acquire exempt-use assets 5 Qualified set-aside amounts (prior IRS approval required) 6 Other distributions (describe in Part VI). See instructions. 7 Total annual distributions. Add lines 1 through 6. 8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions. 9 Distributable amount for 2017 from Section C, line 6 10 Line 8 amount divided by Line 9 amount (i) Excess Distributions Section E - Distribution Allocations (see instructions) Current Year (ii) Underdistributions Pre-2017 (iii) Distributable Amount for 2017 Distributable amount for 2017 from Section C, line 6 Underdistributions, if any, for years prior to 2017 (reasonable cause required-explain in Part VI). See instructions. Excess distributions carryover, if any, to 2017 1 2 3 a b c d e f g h i j 4 a b c 5 6 7 8 a b c d e mmmmmmm mmmmmmm mmmmmmm mmmmmmm From 2013 From 2014 From 2015 From 2016 Total of lines 3a through e Applied to underdistributions of prior years Applied to 2017 distributable amount Carryover from 2012 not applied (see instructions) Remainder. Subtract lines 3g, 3h, and 3i from 3f. Distributions for 2017 from Section D, line 7: $ Applied to underdistributions of prior years Applied to 2017 distributable amount Remainder. Subtract lines 4a and 4b from 4. Remaining underdistributions for years prior to 2017, if any. Subtract lines 3g and 4a from line 2. For result greater than zero, explain in Part VI. See instructions. Remaining underdistributions for 2017. Subtract lines 3h and 4b from line 1. For result greater than zero, explain in Part VI. See instructions. Excess distributions carryover to 2018. Add lines 3j and 4c. Breakdown of line 7: Excess from 2013 Excess from 2014 Excess from 2015 Excess from 2016 Excess from 2017 mmmm mmmm mmmm mmmm mmmm Schedule A (Form 990 or 990-EZ) 2017 JSA 7E1232 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA Schedule A (Form 990 or 990-EZ) 2017 95-1642394 Page 8 Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; Part III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 1c, 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line 1e; Part V, Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions.) SCHEDULE A, PART II, LINE 10 Part VI OTHER INCOME REPRESENTS GROSS INCOME FROM FUNDRAISING EVENTS. Schedule A (Form 990 or 990-EZ) 2017 JSA 7E1225 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Political Campaign and Lobbying Activities SCHEDULE C OMB No. 1545-0047 (Form 990 or 990-EZ) Department of the Treasury Internal Revenue Service % % % % % % I À¾µ» For Organizations Exempt From Income Tax Under section 501(c) and section 527 I Complete if the organization is described below. Attach to Form 990 or Form 990-EZ. Go to www.irs.gov/Form990 for instructions and the latest information. I Open to Public Inspection If the organization answered "Yes," on Form 990, Part IV, line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C. Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B. Section 527 organizations: Complete Part I-A only. If the organization answered "Yes," on Form 990, Part IV, line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)): Complete Part II-A. Do not complete Part II-B. Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A. If the organization answered "Yes," on Form 990, Part IV, line 5 (Proxy Tax) (see separate instructions) or Form 990-EZ, Part V, line 35c (Proxy Tax) (see separate instructions), then Section 501(c)(4), (5), or (6) organizations: Complete Part III. Name of organization Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Complete if the organization is exempt under section 501(c) or is a section 527 organization. Part I-A 1 2 3 Provide a description of the organization's direct and indirect political campaign activities in Part IV. (see instructions for definition of "political campaign activities") Political campaign activity expenditures (see instructions) $ Volunteer hours for political campaign activities (see instructions) m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm Im Part I-B 1 2 3 4a b Complete if the organization is exempt under section 501(c)(3). mmmmmm I mm m m m m m m m m Im m m m m m m m mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Enter the amount of any excise tax incurred by the organization under section 4955 Enter the amount of any excise tax incurred by organization managers under section 4955 If the organization incurred a section 4955 tax, did it file Form 4720 for this year? Was a correction made? If "Yes," describe in Part IV. Part I-C $ $ Yes No Yes No Complete if the organization is exempt under section 501(c), except section 501(c)(3). 1 Enter the amount directly expended by the filing organization for section 527 exempt function activities $ 2 Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt function activities $ 3 Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b $ Did the filing organization file Form 1120-POL for this year? Yes No Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing organization made payments. For each organization listed, enter the amount paid from the filing organization's funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV. 4 5 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm I mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm I mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm I mmmmmmmmmmmmmmmmmmmmmmmmmmmm (a) Name (b) Address (c) EIN (d) Amount paid from filing organization's funds. If none, enter -0-. (e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-. (1) (2) (3) (4) (5) (6) For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. JSA 7E1264 1.000 79590J 7377 V 17-7.10 Schedule C (Form 990 or 990-EZ) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)). Schedule C (Form 990 or 990-EZ) 2017 Part II-A I Check I A Check B 1a b c d e f Page 2 if the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share of excess lobbying expenditures). if the filing organization checked box A and "limited control" provisions apply. Limits on Lobbying Expenditures (a) Filing (The term "expenditures" means amounts paid or incurred.) organization's totals mmmmm m m m m m m m m m m m m m m m m m m mm mm mm mm mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm (b) Affiliated group totals Total lobbying expenditures to influence public opinion (grass roots lobbying) Total lobbying expenditures to influence a legislative body (direct lobbying) Total lobbying expenditures (add lines 1a and 1b) Other exempt purpose expenditures Total exempt purpose expenditures (add lines 1c and 1d) Lobbying nontaxable amount. Enter the amount from the following table in both columns. If the amount on line 1e, column (a) or (b) is: The lobbying nontaxable amount is: g h i j Not over $500,000 20% of the amount on line 1e. Over $500,000 but not over $1,000,000 $100,000 plus 15% of the excess over $500,000. Over $1,000,000 but not over $1,500,000 $175,000 plus 10% of the excess over $1,000,000. Over $1,500,000 but not over $17,000,000 $225,000 plus 5% of the excess over $1,500,000. Over $17,000,000 $1,000,000. mmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Grassroots nontaxable amount (enter 25% of line 1f) Subtract line 1g from line 1a. If zero or less, enter -0Subtract line 1f from line 1c. If zero or less, enter -0If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting section 4911 tax for this year? Yes 4-Year Averaging Period Under section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the separate instructions for lines 2a through 2f.) No Lobbying Expenditures During 4-Year Averaging Period Calendar year (or fiscal year beginning in) (a) 2014 (b) 2015 (c) 2016 (d) 2017 (e) Total 2a Lobbying nontaxable amount b Lobbying ceiling amount (150% of line 2a, column (e)) c Total lobbying expenditures d Grassroots nontaxable amount e Grassroots ceiling amount (150% of line 2d, column (e)) f Grassroots lobbying expenditures Schedule C (Form 990 or 990-EZ) 2017 JSA 7E1265 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Page Schedule C (Form 990 or 990-EZ) 2017 Part II-B For each "Yes," response on lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity. 1 a b c d e f g h i j 2a b c d During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of: Volunteers? Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? Media advertisements? Mailings to members, legislators, or the public? Publications, or published or broadcast statements? Grants to other organizations for lobbying purposes? Direct contact with legislators, their staffs, government officials, or a legislative body? Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? Other activities? Total. Add lines 1c through 1i Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? If "Yes," enter the amount of any tax incurred under section 4912 If "Yes," enter the amount of any tax incurred by organization managers under section 4912 If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m mm mmmmmmmmmmmmmmmmmmmmmmmmmmm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mmmmmm mmmm m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mmm mmmmmmmmmmmmmmmmm m m m mm mm Part III-A (a) Yes (b) No X X X X X X X X X 805,102. X Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6). mmmmmmmmmmmmmmmmmmmmmmmmmmmm Dues, assessments and similar amounts from members 2 Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political expenses for w hich the section 527(f) tax was paid). Current year Carryover from last year Total Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? Taxable amount of lobbying and political expenditures (see instructions) a b c mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmm m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm Part IV Yes No 1 2 3 Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either (a) BOTH Part III-A, lines 1 and 2, are answered "No," OR (b) Part III-A, line 3, is answered "Yes." 1 5 805,102. mmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmm Part III-B 3 4 Amount Were substantially all (90% or more) dues received nondeductible by members? Did the organization make only in-house lobbying expenditures of $2,000 or less? Did the organization agree to carry over lobbying and political campaign activity expenditures from the prior year? 1 2 3 3 Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)). 1 2a 2b 2c 3 4 5 Supplemental Information Provide the descriptions required for Part I-A, line 1; Part I-B, line 4; Part I-C, line 5; Part II-A (affiliated group list); Part II-A, lines 1 and 2 (see instructions); and Part II-B, line 1. Also, complete this part for any additional information. SEE PAGE 4 JSA 7E1266 1.000 79590J 7377 Schedule C (Form 990 or 990-EZ) 2017 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule C (Form 990 or 990-EZ) 2017 Part IV Page 4 Supplemental Information (continued) SCHEDULE C, PART II-B, LINE 1(G)-(I) THE UNIVERSITY OF SOUTHERN CALIFORNIA'S LOBBYING EFFORTS INCLUDE, THROUGH THE USE OF PAID STAFF, THE PROMOTION OF HIGHER APPROPRIATIONS FOR STUDENT AID AND BASIC RESEARCH PROGRAMS AND EFFORTS TO GENERALLY FURTHER THE UNIVERSITY'S MISSION OF EDUCATION AND RESEARCH AT THE LOCAL, STATE AND FEDERAL LEVEL. THE UNIVERSITY ALSO PAYS DUES TO MEMBER ORGANIZATIONS WHICH MAY LOBBY ON ITS BEHALF. AMOUNTS ASSOCIATED WITH MEMBER DUES ARE NOT REPORTED IN PART II-B. Schedule C (Form 990 or 990-EZ) 2017 JSA 7E1500 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY SCHEDULE D (Form 990) Department of the Treasury Internal Revenue Service Name of the organization OMB No. 1545-0047 Supplemental Financial Statements I I Complete if the organization answered "Yes" on Form 990, Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b. À¾µ» Attach to Form 990. Go to www.irs.gov/Form990 for instructions and the latest information. Open to Public Inspection I Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Part I Complete if the organization answered "Yes" on Form 990, Part IV, line 6. (a) Donor advised funds mmmmmmmmmmm mm mmmmmmmmmm (b) Funds and other accounts 6. Total number at end of year 2,538,703. Aggregate value of contributions to (during year) 8,646,523. Aggregate value of grants from (during year) 27,344,668. Aggregate value at end of year Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization's property, subject to the organization's exclusive legal control? Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? 1 2 3 4 5 6 Part II 1 2 a b c d 3 mmmmmmmmmmm X Yes No mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm X Yes No Conservation Easements. Complete if the organization answered "Yes" on Form 990, Part IV, line 7. Purpose(s) of conservation easements held by the organization (check all that apply). Preservation of land for public use (e.g., recreation or education) Preservation of a historically important land area Protection of natural habitat Preservation of a certified historic structure Preservation of open space Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation Held at the End of the Tax Year easement on the last day of the tax year. 2a Total number of conservation easements 2b Total acreage restricted by conservation easements 2c Number of conservation easements on a certified historic structure included in (a) Number of conservation easements included in (c) acquired after 7/25/06, and not on a 2d historic structure listed in the National Register Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during the tax year Number of states where property subject to conservation easement is located Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and enforcement of the conservation easements it holds? Yes No mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmm mmmmm mmmmmmmmmmmmmmmmmmmmmmmm I 4 5 I mmmmmmmmmmmmmmmmmmmmmm 6 Staff and volunteer hours devoted to monitoring, inspecting, handling of violations, and enforcing conservation easements during the year 7 Amount of expenses incurred in monitoring, inspecting, handling of violations, and enforcing conservation easements during the year 8 Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? Yes In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describes the organization's accounting for conservation easements. I I 9 $ Part III 1a b 2 a b mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm No Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete if the organization answered "Yes" on Form 990, Part IV, line 8. If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIII, the text of the footnote to its financial statements that describes these items. If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items: (i) Revenue included on Form 990, Part VIII, line 1 $ 31,354,223. (ii) Assets included in Form 990, Part X $ If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under SFAS 116 (ASC 958) relating to these items: Revenue included on Form 990, Part VIII, line 1 $ Assets included in Form 990, Part X $ mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m II m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm II For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1268 2.000 79590J 7377 V 17-7.10 Schedule D (Form 990) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule D (Form 990) 2017 Part III Page 2 Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued) Using the organization's acquisition, accession, and other records, check any of the following that are a significant use of its collection items (check all that apply): X Public exhibition X Loan or exchange programs a d X Scholarly research X Other EDUCATION b e X Preservation for future generations c 4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose in Part XIII. 5 During the year, did the organization solicit or receive donations of art, historical treasures, or other similar X No assets to be sold to raise funds rather than to be maintained as part of the organization's collection? Yes 3 mmmmmm Part IV Escrow and Custodial Arrangements. Complete if the organization answered "Yes" on Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. 1 a Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not included on Form 990, Part X? b If "Yes," explain the arrangement in Part XIII and complete the following table: Amount c Beginning balance 1c d Additions during the year 1d e Distributions during the year 1e f Ending balance 1f 2 a Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability? b If "Yes," explain the arrangement in Part XIII. Check here if the explanation has been provided on Part XIII mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Part V (a) Current year (b) Prior year No 222,491,133. 20,612,409. 11,467,461. 231,636,081. X Yes No mmmmmmmmmm Endowment Funds. Complete if the organization answered “Yes” on Form 990, Part IV, line 10. mmmm mmmmmmmmmmm mmmmmmmmmmmmm mmmmmm mmmmmmmmmmm mmmmm mmmmmmmm X Yes (c) Two years back (d) Three years back (e) Four years back 4876143064. 4371419736. 4511866099. 4392817799. 3689898845. 1 a Beginning of year balance 179,791,712. 176,085,163. 164,261,117. 152,516,218. 158,946,757. b Contributions c Net investment earnings, gains, 450,633,689. 543,468,688. -107908309. 147,475,858. 710,037,195. and losses 47,999,221. 44,660,935. 41,057,640. 37,788,447. 34,447,250. d Grants or scholarships e Other expenditures for facilities 167,411,661. 161,668,858. 147,972,885. 135,988,210. 125,143,900. and programs 8,872,700. 8,500,730. 7,768,646. 7,167,119. 6,473,848. f Administrative expenses 5282284883. 4876143064. 4371419736. 4511866099. 4392817799. g End of year balance 2 Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as: 28.0000 % a Board designated or quasi-endowment 72.0000 % b Permanent endowment c Temporarily restricted endowment % The percentages on lines 2a, 2b, and 2c should equal 100%. 3 a Are there endowment funds not in the possession of the organization that are held and administered for the Yes No organization by: X 3a(i) (i) unrelated organizations 3a(ii) X (ii) related organizations 3b X b If "Yes" on line 3a(ii), are the related organizations listed as required on Schedule R? 4 Describe in Part XIII the intended uses of the organization's endowment funds. I I I mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm Part VI Land, Buildings, and Equipment. Complete if the organization answered "Yes" on Form 990, Part IV, line 11a. See Form 990, Part X, line 10. Description of property mmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmm mmmmmmmmmm mmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmm (a) Cost or other basis (investment) (b) Cost or other basis (other) (c) Accumulated depreciation 196,738,085. Land 5136914478. 1673962859. Buildings Leasehold improvements 677,721,775. 606,827,519. Equipment 715,795,648. 302,999,825. Other Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10c.) 1a b c d e m m m m m m mI JSA 7E1269 1.000 79590J 7377 V 17-7.10 (d) Book value 196,738,085. 3,462,951,619. 70,894,256. 412,795,823. 4,143,379,783. Schedule D (Form 990) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule D (Form 990) 2017 Part VII Page (a) Description of security or category (including name of security) (b) Book value mmmmmmmmmmmmmmmmm mmmmmmmmmmmmm (1) Financial derivatives (2) Closely-held equity interests (3) Other (A) ALTERNATIVE INVESTMENTS (B) HEDGE FUND (C) ALTERNATIVE INVESTMENTS (D) PRIVATE EQUITY (E) (F) (G) (H) 1,075,087,540. FMV 1,320,652,187. FMV I (a) Description of investment (1) (2) (3) (4) (5) (6) (7) (8) (9) Total. (Column (b) must equal Form 990, Part X, col. (B) line 13.) Part IX (c) Method of valuation: Cost or end-of-year market value 2,395,739,727. Investments - Program Related. Complete if the organization answered "Yes" on Form 990, Part IV, line 11c. See Form 990, Part X, line 13. Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.) Part VIII (b) Book value (c) Method of valuation: Cost or end-of-year market value I Other Assets. Complete if the organization answered "Yes" on Form 990, Part IV, line 11d. See Form 990, Part X, line 15. (a) Description (1) (2) (3) (4) (5) (6) (7) (8) (9) Total. (Column (b) must equal Form 990, Part X, col. (B) line 15.) Part X (b) Book value mmmmmmmmmmmmmmmmmmmmmmmmmm I Other Liabilities. Complete if the organization answered "Yes" on Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25. (a) Description of liability 1. 3 Investments - Other Securities. Complete if the organization answered "Yes" on Form 990, Part IV, line 11b. See Form 990, Part X, line 12. (1) Federal income taxes (2) ACTUARIAL LIABILITY FOR ANNUITIES PAYABLES (3) (4) SELF INSURANCE RESERVES (5) FEDERAL STUDENT LOAN FUNDS (6) ASSET RETIREMENT OBLIGATION (7) REFUNDABLE ADVANCES (8) CAPITAL LEASE OBLIGATION (9) OTHER LIABILITIES Total. (Column (b) must equal Form 990, Part X, col. (B) line 25.) (b) Book value I 108,842,487. 264,903,845. 64,319,074. 126,864,999. 15,973,692. 74,222,373. 4,620,725. 659,747,195. 2. Liability for uncertain tax positions. In Part XIII, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC 740). Check here if the text of the footnote has been provided in Part XIII JSA 7E1270 1.000 Schedule D (Form 990) 2017 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule D (Form 990) 2017 Part XI 1 2 a b c d e 3 4 a b c 5 mmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm Total revenue, gains, and other support per audited financial statements Amounts included on line 1 but not on Form 990, Part VIII, line 12: Net unrealized gains (losses) on investments Donated services and use of facilities Recoveries of prior year grants Other (Describe in Part XIII.) Add lines 2a through 2d Subtract line 2e from line 1 Amounts included on Form 990, Part VIII, line 12, but not on line 1: Investment expenses not included on Form 990, Part VIII, line 7b Other (Describe in Part XIII.) Add lines 4a and 4b Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) Part XII 1 2 a b c d e 3 4 a b c 5 Page 1 2a 2b 2c 2d 2e 3 4a 4b 4c 5 Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered "Yes" on Form 990, Part IV, line 12a. mmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm Total expenses and losses per audited financial statements Amounts included on line 1 but not on Form 990, Part IX, line 25: Donated services and use of facilities Prior year adjustments Other losses Other (Describe in Part XIII.) Add lines 2a through 2d Subtract line 2e from line 1 Amounts included on Form 990, Part IX, line 25, but not on line 1: Investment expenses not included on Form 990, Part VIII, line 7b Other (Describe in Part XIII.) Add lines 4a and 4b Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) Part XIII 4 Reconciliation of Revenue per Audited Financial Statements With Revenue per Return. Complete if the organization answered "Yes" on Form 990, Part IV, line 12a. 1 2a 2b 2c 2d 2e 3 4a 4b 4c 5 Supplemental Information. Provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part IV, lines 1b and 2b; Part V, line 4; Part X, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information. SEE PAGE 5 JSA Schedule D (Form 990) 2017 7E1271 1.000 79590J 7377 V 17-7.10 Part XIII PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA Supplemental Information (continued) Schedule D (Form 990) 2017 95-1642394 Page 5 SCHEDULE D, PART III, LINE 4 THE UNIVERSITY OF SOUTHERN CALIFORNIA RETAINS MULTIPLE COLLECTIONS OF ART, HISTORICAL TREASURES AND OTHER SIMILAR ASSETS SUCH AS BOOKS, SCRIPTS, FILMS AND PHOTOGRAPHY. THESE COLLECTIONS ARE PROTECTED AND PRESERVED FOR EDUCATION, RESEARCH AND PUBLIC EXHIBITION PURPOSES. SCHEDULE D, PART IV, LINE 1B THE UNIVERSITY ACTS AS THE FISCAL AGENT FOR FUNDS RELATED TO UNIVERSITY SPONSORED AND/OR AFFILIATED PROGRAMS. THE UNIVERSITY DOES NOT OWN THE FUNDS ASSOCIATED WITH THESE PROGRAMS. SCHEDULE D, PART V, LINE 4 THE INTENT OF THE UNIVERSITY'S ENDOWMENT FUNDS IS TO GENERATE THE REVENUES NECESSARY TO SUPPORT THE UNIVERSITY'S EXEMPT PURPOSES, INCLUDING EDUCATION, RESEARCH AND SCHOLARSHIPS. SCHEDULE D, PART X, LINE 2 THE UNIVERSITY OF SOUTHERN CALIFORNIA DOES NOT HAVE A FIN 48 FOOTNOTE AS ANY UNCERTAIN TAX POSITIONS WERE DEEMED IMMATERIAL. Schedule D (Form 990) 2017 JSA 7E1226 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY SCHEDULE E (Form 990 or 990-EZ) I I Schools Complete if the organization answered "Yes" on Form 990, Part IV, line 13, or Form 990-EZ, Part VI, line 48. Attach to Form 990 or Form 990-EZ. Go to www.irs.gov/Form990 for the latest information. Department of the Treasury Internal Revenue Service Name of the organization I OMB No. 1545-0047 À¾µ» Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA Part I 95-1642394 YES Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws, other governing instrument, or in a resolution of its governing body? Does the organization include a statement of its racially nondiscriminatory policy toward students in all its brochures, catalogues, and other written communications with the public dealing with student admissions, programs, and scholarships? Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media during the period of solicitation for students, or during the registration period if it has no solicitation program, in a way that makes the policy known to all parts of the general community it serves? If "Yes," please describe. If "No," please explain. If you need more space, use Part II 1 2 3 mmmmmmmmmmmmmmmmmmmmm 1 X mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 2 X mmmmmmmmmmmmmmmmmmmmmmmmmm 3 X 4a X 4b X 4c 4d X X NO SEE SUPPLEMENTAL PAGE 4 Does the organization maintain the following? a Records indicating the racial composition of the student body, faculty, and administrative staff? b Records documenting that scholarships and other financial assistance are awarded on a racially nondiscriminatory basis? c Copies of all catalogues, brochures, announcements, and other written communications to the public dealing with student admissions, programs, and scholarships? d Copies of all material used by the organization or on its behalf to solicit contributions? mmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm If you answered "No" to any of the above, please explain. If you need more space, use Part II. 5 Does the organization discriminate by race in any way with respect to: a Students' rights or privileges? 5a X b Admissions policies? 5b X c Employment of faculty or administrative staff? 5c X d Scholarships or other financial assistance? 5d X e Educational policies? 5e X 5f X g Athletic programs? 5g X h Other extracurricular activities? If you answered "Yes" to any of the above, please explain. If you need more space, use Part II. 5h X f Use of facilities? mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmm 6 a Does the organization receive any financial aid or assistance from a governmental agency? b Has the organization's right to such aid ever been revoked or suspended? If you answered "Yes" on either line 6a or line 6b, explain on Part II. 7 Does the organization certify that it has complied with the applicable requirements of sections 4.01 through 4.05 of Rev. Proc. 75-50, 1975-2 C.B. 587, covering racial nondiscrimination? If "No," explain on Part II mmmmmm For Paperwork Reduction Act Notice, see the Instructions for Form 990 or Form 990-EZ. JSA 7E1273 1.000 79590J 7377 V 17-7.10 6a 6b X 7 X X Schedule E (Form 990 or 990-EZ) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule E (Form 990 or 990-EZ) (2017) Part II Page 2 Supplemental Information. Provide the explanations required by Part I, lines 3, 4d, 5h, 6b, and 7, as applicable. Also provide any other additional information (see instructions). SCHEDULE E - EXPLANATION FOR LINE 3 NON-DISCRIMINATION POLICY THE UNIVERSITY OF SOUTHERN CALIFORNIA IS AN EQUAL OPPORTUNITY EMPLOYER AND EDUCATOR. PROUDLY PLURALISTIC AND FIRMLY COMMITTED TO PROVIDING EQUAL OPPORTUNITY FOR OUTSTANDING MEN AND WOMEN OF EVERY RACE, CREED AND BACKGROUND, THE UNIVERSITY STRIVES TO BUILD A COMMUNITY IN WHICH EACH PERSON RESPECTS THE RIGHTS OF OTHER PEOPLE TO LIVE, WORK AND LEARN IN PEACE AND DIGNITY, TO BE PROUD OF WHO AND WHAT THEY ARE, AND TO HAVE EQUAL OPPORTUNITY TO REALIZE THEIR FULL POTENTIAL AS INDIVIDUALS AND MEMBERS OF SOCIETY. TO THIS END, THE UNIVERSITY PLACES GREAT EMPHASIS ON THOSE VALUES AND VIRTUES THAT BIND US TOGETHER AS HUMAN BEINGS AND MEMBERS OF THE TROJAN FAMILY. THE UNIVERSITY ENTHUSIASTICALLY SUPPORTS THIS POLICY IN ITS ENTIRETY, AND EXPECTS THAT EVERY PERSON ASSOCIATED WITH THE UNIVERSITY WILL GIVE CONTINUING SUPPORT TO ITS IMPLEMENTATION. THE UNIVERSITY IS COMMITTED TO COMPLYING WITH ALL APPLICABLE LAWS AND GOVERNMENTAL REGULATIONS AT EVERY LEVEL OF GOVERNMENT WHICH PROHIBIT DISCRIMINATION AGAINST, OR WHICH MANDATE THAT SPECIAL CONSIDERATION BE GIVEN TO STUDENTS AND APPLICANTS FOR ADMISSION, OR FACULTY, STAFF AND APPLICANTS FOR EMPLOYMENT ON THE BASIS OF ANY PROTECTED CATEGORY, INCLUDING RACE, COLOR, NATIONAL ORIGIN, ANCESTRY, RELIGION, GENDER, SEXUAL ORIENTATION, AGE, PHYSICAL DISABILITY, MENTAL DISABILITY, MARITAL STATUS, VETERAN STATUS, GENETIC INFORMATION, OR ANY OTHER CHARACTERISTIC WHICH MAY FROM TIME TO TIME BE SPECIFIED IN SUCH LAWS AND REGULATIONS. GENDER INCLUDES BOTH THE ACTUAL SEX OF AN INDIVIDUAL AND THAT PERSON'S GENDER IDENTITY, APPEARANCE OR BEHAVIOR, WHETHER OR NOT THAT IDENTITY, APPEARANCE OR BEHAVIOR IS TRADITIONALLY ASSOCIATED WITH THAT PERSON'S SEX Schedule E (Form 990 or 990-EZ) (2017) JSA 7E1501 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule E (Form 990 or 990-EZ) (2017) Part II Page 2 Supplemental Information. Provide the explanations required by Part I, lines 3, 4d, 5h, 6b, and 7, as applicable. Also provide any other additional information (see instructions). AT BIRTH. THIS POLICY APPLIES TO ALL OF THE UNIVERSITY'S EDUCATIONAL PROGRAMS AND ACTIVITIES INCLUDING ADMISSIONS, AND ALL PERSONNEL ACTIVITIES INCLUDING BUT NOT LIMITED TO RECRUITING, HIRING, PROMOTION, DEMOTION, COMPENSATION, BENEFITS, TRANSFERS, LAYOFFS, RETURN FROM LAYOFF, PROVISION OF LEAVES, TRAINING, EDUCATION, TUITION ASSISTANCE AND OTHER PROGRAMS. IN ADDITION, AN OTHERWISE QUALIFIED INDIVIDUAL MUST NOT BE DISCRIMINATED AGAINST IN, OR EXCLUDED FROM, ADMISSIONS, PARTICIPATION IN EDUCATIONAL PROGRAMS AND ACTIVITIES, OR EMPLOYMENT SOLELY DUE TO HIS OR HER DISABILITY. THE UNIVERSITY SEEKS COMPLIANCE WITH ALL STATUTES PROHIBITING DISCRIMINATION IN EDUCATION, INCLUDING TITLE VI AND TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, TITLE IX OF THE EDUCATION AMENDMENTS OF 1972, SECTION 504 OF THE REHABILITATION ACT OF 1973, THE AGE DISCRIMINATION ACT OF 1975, AND THE AMERICANS WITH DISABILITIES ACT OF 1990 WHICH RESPECTIVELY PROHIBIT DISCRIMINATION. THIS GOOD FAITH EFFORT TO COMPLY IS MADE EVEN WHEN SUCH LAWS AND REGULATIONS CONFLICT WITH EACH OTHER. THE UNIVERSITY WILL MAKE REASONABLE ACCOMMODATIONS FOR QUALIFIED INDIVIDUALS WITH KNOWN DISABILITIES UNLESS DOING SO WOULD RESULT IN UNDUE HARDSHIP. IN GENERAL, THE UNIVERSITY DOES NOT SOLICIT OUTSIDE OF ITS WEBSITE AND ADMISSIONS MATERIALS. THE UNIVERSITY'S NON-DISCRIMINATION POLICY IS ON THE UNIVERSITY'S WEBSITE, IN THE FACULTY HANDBOOK, IN SCAMPUS (THE STUDENT HANDBOOK), AND ALSO IN THE UNIVERSITY COURSE CATALOGUE. IN ADDITION, IT IS COMMUNICATED TO ALL STUDENTS DURING ORIENTATION, TO ALL NEW EMPLOYEES WITHIN 60 DAYS OF HIRE, AND TO ALL EMPLOYEES EVERY 2 YEARS Schedule E (Form 990 or 990-EZ) (2017) JSA 7E1501 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule E (Form 990 or 990-EZ) (2017) Part II Page 2 Supplemental Information. Provide the explanations required by Part I, lines 3, 4d, 5h, 6b, and 7, as applicable. Also provide any other additional information (see instructions). AS PART OF THE UNIVERSITY'S HARASSMENT AND DISCRIMINATION PREVENTION TRAINING. SCHEDULE E - EXPLANATION FOR LINE 6A THE UNIVERSITY OF SOUTHERN CALIFORNIA RECEIVES FUNDING FROM VARIOUS FEDERAL AND STATE GOVERNMENTAL AGENCIES IN SUPPORT OF THE UNIVERSITY'S EDUCATIONAL MISSION. Schedule E (Form 990 or 990-EZ) (2017) JSA 7E1501 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY SCHEDULE F Department of the Treasury Internal Revenue Service OMB No. 1545-0047 Statement of Activities Outside the United States I (Form 990) À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 14b, 15, or 16. Attach to Form 990. Go to www.irs.gov/Form990 for instructions and the latest information. I I Name of the organization Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Part I General Information on Activities Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 14b. 1 For grantmakers. Does the organization maintain records to substantiate the amount of its grants and other assistance, the grantees' eligibility for the grants or assistance, and the selection criteria used to award the grants or assistance? mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm X Yes No 2 For grantmakers. Describe in Part V the organization's procedures for monitoring the use of its grants and other assistance outside the United States. 3 Activities per Region. (The following Part I, line 3 table can be duplicated if additional space is needed.) (a) Region (b) Number of offices in the region (c) Number of employees, agents, and independent contractors in the region (d) Activities conducted in the region (by type) (such as, fundraising, program services, investments, grants to recipients located in the region) (e) If activity listed in (d) is a program service, describe specific type of service(s) in the region (f) Total expenditures for and investments in the region (1) CENTRAL AMERICA/CARIBBEAN 0. 8. PROGRAM SERVICES INSTRUCT,EXCUR,TRAVEL 187,613. (2) EAST ASIA AND THE PACIFIC 5. 65. PROGRAM SERVICES INSTRUCT,EXCUR,TRAVEL 1,812,883. (3) EUROPE 1. 61. PROGRAM SERVICES INSTRUCT,EXCUR,TRAVEL 3,189,506. (4) MIDDLE EAST AND NORTH AFRICA 0. 6. PROGRAM SERVICES INSTRUCT,EXCUR,TRAVEL 298,758. (5) NORTH AMERICA 1. 13. PROGRAM SERVICES INSTRUCT,EXCUR,TRAVEL 277,152. (6) RUSSIA/INDEPENDENT STATES 0. 0. PROGRAM SERVICES INSTRUCT,EXCUR,TRAVEL 91,434. (7) SOUTH AMERICA 1. 2. PROGRAM SERVICES INSTRUCT,EXCUR,TRAVEL 109,414. (8) SOUTH ASIA 1. 1. PROGRAM SERVICES INSTRUCT,EXCUR,TRAVEL 184,608. (9) SUB-SAHARAN AFRICA 0. 2. PROGRAM SERVICES INSTRUCT,EXCUR,TRAVEL 83,843. (10) CENTRAL AMERICA/CARIBBEAN 0. 0. PROGRAM SERVICES RESEARCH 5,699. (11) EAST ASIA AND THE PACIFIC 0. 0. PROGRAM SERVICES RESEARCH 177,117. (12) EUROPE 0. 0. PROGRAM SERVICES RESEARCH 107,464. (13) MIDDLE EAST AND NORTH AFRICA 0. 0. PROGRAM SERVICES RESEARCH 60,570. (14) NORTH AMERICA 0. 0. PROGRAM SERVICES RESEARCH 13,057. (15) RUSSIA/INDEPENDENT STATES 0. 0. PROGRAM SERVICES RESEARCH 52,726. (16) SOUTH AMERICA 0. 0. PROGRAM SERVICES RESEARCH 25,622. (17) SOUTH ASIA 3 a Sub-total b Total from continuation sheets to Part I c Totals (add lines 3a and 3b) 0. 0. PROGRAM SERVICES RESEARCH 9. 158. 6,684,600. 172. 924,605,687. mmmmmmmmmmm mmmmmmm 9. 330. For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1274 1.000 79590J 7377 V 17-7.10 7,134. 931,290,287. Schedule F (Form 990) 2017 PUBLIC DISCLOSURE COPY SCHEDULE F Department of the Treasury Internal Revenue Service OMB No. 1545-0047 Statement of Activities Outside the United States I (Form 990) À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 14b, 15, or 16. Attach to Form 990. Go to www.irs.gov/Form990 for instructions and the latest information. I I Name of the organization Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Part I General Information on Activities Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 14b. 1 For grantmakers. Does the organization maintain records to substantiate the amount of its grants and other assistance, the grantees' eligibility for the grants or assistance, and the selection criteria used to award the grants or assistance? mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm X Yes No 2 For grantmakers. Describe in Part V the organization's procedures for monitoring the use of its grants and other assistance outside the United States. 3 Activities per Region. (The following Part I, line 3 table can be duplicated if additional space is needed.) (a) Region (b) Number of offices in the region (c) Number of employees, agents, and independent contractors in the region (d) Activities conducted in the region (by type) (such as, fundraising, program services, investments, grants to recipients located in the region) (e) If activity listed in (d) is a program service, describe specific type of service(s) in the region (f) Total expenditures for and investments in the region (1) SUB-SAHARAN AFRICA 0. 0. PROGRAM SERVICES RESEARCH (2) EAST ASIA AND THE PACIFIC 0. 19. PROGRAM SERVICES STUDENT ABROAD 419,073. (3) EUROPE 0. 9. PROGRAM SERVICES STUDENT ABROAD 384,416. (4) NORTH AMERICA 0. 3. PROGRAM SERVICES STUDENT ABROAD 50,264. (5) SOUTH AMERICA 0. 0. PROGRAM SERVICES STUDENT ABROAD 2,012. (6) SOUTH ASIA 0. 0. PROGRAM SERVICES STUDENT ABROAD 3,000. (7) SUB-SAHARAN AFRICA 0. 1. PROGRAM SERVICES STUDENT ABROAD 500. (8) CENTRAL AMERICA/CARIBBEAN 0. 1. PROGRAM SERVICES RECRUITMENT 157,778. (9) EAST ASIA AND THE PACIFIC 0. 23. PROGRAM SERVICES RECRUITMENT 1,916,432. (10) EUROPE 0. 1. PROGRAM SERVICES RECRUITMENT 239,765. (11) NORTH AMERICA 0. 1. PROGRAM SERVICES RECRUITMENT 4,387. (12) RUSSIA/INDEPENDENT STATES 0. 0. PROGRAM SERVICES RECRUITMENT 14,826. (13) SOUTH AMERICA 0. 1. PROGRAM SERVICES RECRUITMENT 130,899. (14) SUB-SAHARAN AFRICA 0. 1. PROGRAM SERVICES RECRUITMENT 182,943. (15) CENTRAL AMERICA/CARIBBEAN 0. 0. PROGRAM SERVICES GLOBALIZATION 111. (16) EAST ASIA AND THE PACIFIC 0. 0. PROGRAM SERVICES GLOBALIZATION 151,004. (17) EUROPE 3 a Sub-total b Total from continuation sheets to Part I c Totals (add lines 3a and 3b) 0. 0. PROGRAM SERVICES GLOBALIZATION 54,190. mmmmmmmmmmm mmmmmmm For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1274 1.000 79590J 7377 V 17-7.10 62,174. Schedule F (Form 990) 2017 PUBLIC DISCLOSURE COPY SCHEDULE F Department of the Treasury Internal Revenue Service OMB No. 1545-0047 Statement of Activities Outside the United States I (Form 990) À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 14b, 15, or 16. Attach to Form 990. Go to www.irs.gov/Form990 for instructions and the latest information. I I Name of the organization Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Part I General Information on Activities Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 14b. 1 For grantmakers. Does the organization maintain records to substantiate the amount of its grants and other assistance, the grantees' eligibility for the grants or assistance, and the selection criteria used to award the grants or assistance? mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm X Yes No 2 For grantmakers. Describe in Part V the organization's procedures for monitoring the use of its grants and other assistance outside the United States. 3 Activities per Region. (The following Part I, line 3 table can be duplicated if additional space is needed.) (a) Region (b) Number of offices in the region (c) Number of employees, agents, and independent contractors in the region (d) Activities conducted in the region (by type) (such as, fundraising, program services, investments, grants to recipients located in the region) (e) If activity listed in (d) is a program service, describe specific type of service(s) in the region (f) Total expenditures for and investments in the region (1) NORTH AMERICA 0. 0. PROGRAM SERVICES GLOBALIZATION (2) CENTRAL AMERICA/CARIBBEAN 0. 0. PROGRAM SERVICES PREVNT MED & GLOBAL ME 12,264. (3) EAST ASIA AND THE PACIFIC 0. 0. PROGRAM SERVICES PREVNT MED & GLOBAL ME 62,895. (4) EUROPE 0. 0. PROGRAM SERVICES PREVNT MED & GLOBAL ME 56,015. (5) NORTH AMERICA 0. 0. PROGRAM SERVICES PREVNT MED & GLOBAL ME 6,732. (6) SOUTH ASIA 0. 0. PROGRAM SERVICES PREVNT MED & GLOBAL ME 7,010. (7) SUB-SAHARAN AFRICA 0. 0. PROGRAM SERVICES PREVNT MED & GLOBAL ME 56,190. (8) EAST ASIA AND THE PACIFIC 0. 78. PROGRAM SERVICES INTL EXP LEARNING 2,932,636. (9) EUROPE 0. 22. PROGRAM SERVICES INTL EXP LEARNING 541,589. (10) MIDDLE EAST AND NORTH AFRICA 0. 1. PROGRAM SERVICES INTL EXP LEARNING 160,797. (11) SOUTH AMERICA 0. 11. PROGRAM SERVICES INTL EXP LEARNING 605,932. (12) EAST ASIA AND THE PACIFIC 0. 0. GRANTMAKING 1,245,978. (13) EUROPE 0. 0. GRANTMAKING 1,663,309. (14) MIDDLE EAST AND NORTH AFRICA 0. 0. GRANTMAKING 46,209. (15) NORTH AMERICA 0. 0. GRANTMAKING 1,042,734. (16) SUB-SAHARAN AFRICA 0. 0. GRANTMAKING 35,265. (17) CENTRAL AMERICA/CARIBBEAN 3 a Sub-total b Total from continuation sheets to Part I c Totals (add lines 3a and 3b) 0. 0. INVESTMENTS 805,462,455. mmmmmmmmmmm mmmmmmm For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1274 1.000 79590J 7377 V 17-7.10 1,289. Schedule F (Form 990) 2017 PUBLIC DISCLOSURE COPY SCHEDULE F Department of the Treasury Internal Revenue Service OMB No. 1545-0047 Statement of Activities Outside the United States I (Form 990) À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 14b, 15, or 16. Attach to Form 990. Go to www.irs.gov/Form990 for instructions and the latest information. I I Name of the organization Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Part I General Information on Activities Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 14b. For grantmakers. Does the organization maintain records to substantiate the amount of its grants and other assistance, the grantees' eligibility for the grants or assistance, and the selection criteria used to award the grants or assistance? 1 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm X Yes 2 For grantmakers. Describe in Part V the organization's procedures for monitoring the use of its grants and other assistance outside the United States. 3 Activities per Region. (The following Part I, line 3 table can be duplicated if additional space is needed.) (a) Region (b) Number of offices in the region (c) Number of employees, agents, and independent contractors in the region (d) Activities conducted in the region (by type) (such as, fundraising, program services, investments, grants to recipients located in the region) (e) If activity listed in (d) is a program service, describe specific type of service(s) in the region No (f) Total expenditures for and investments in the region (1) EAST ASIA AND THE PACIFIC 0. 0. INVESTMENTS 6,296,025. (2) EUROPE 0. 0. INVESTMENTS 100,596,589. (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) 3a b c mmmmmmmmmmm mmmmmmm Sub-total Total from continuation sheets to Part I Totals (add lines 3a and 3b) For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1274 1.000 79590J 7377 V 17-7.10 Schedule F (Form 990) 2017 UNIVERSITY OF SOUTHERN CALIFORNIA PUBLIC DISCLOSURE COPY 95-1642394 Schedule F (Form 990) 2017 Part II (a) Name of organization 1 Page Grants and Other Assistance to Organizations or Entities Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 15, for any recipient who received more than $5,000. Part II can be duplicated if additional space is needed. (b) IRS code section and EIN (if applicable) (c) Region (d) Purpose of grant (e) Amount of cash grant (1) NORTH AMERICA RSCH SUBAWRD 26,241. (2) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 7,036. (3) MIDDLE EAST/NORTH AFRICA RSCH SUBAWRD 31,850. (4) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 114,657. (5) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 65,266. (6) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 58,609. (7) EAST ASIA/PACIFIC RSCH SUBAWRD 517,508. (8) NORTH AMERICA RSCH SUBAWRD 171,542. (9) EAST ASIA/PACIFIC RSCH SUBAWRD 92,018. (10) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 39,015. (11) MIDDLE EAST/NORTH AFRICA RSCH SUBAWRD 14,359. (12) EAST ASIA/PACIFIC RSCH SUBAWRD 77,578. (13) SUB-SAHARAN AFRICA RSCH SUBAWRD 9,734. (14) NORTH AMERICA RSCH SUBAWRD 30,237. (15) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 14,064. (16) NORTH AMERICA RSCH SUBAWRD 110,070. 2 3 (f) Manner of cash disbursement (g) Amount of noncash assistance (h) Description of noncash assistance 2 (i) Method of valuation (book, FMV, appraisal, other) Enter total number of recipient organizations listed above that are recognized as charities by the foreign country, recognized as tax-exempt by the IRS, or for which the grantee or counsel has provided a section 501(c)(3) equivalency letter Enter total number of other organizations or entities m m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm II JSA 7E1275 1.000 79590J 7377 V 17-7.10 Schedule F (Form 990) 2017 UNIVERSITY OF SOUTHERN CALIFORNIA PUBLIC DISCLOSURE COPY 95-1642394 Schedule F (Form 990) 2017 Part II (a) Name of organization 1 Page Grants and Other Assistance to Organizations or Entities Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 15, for any recipient who received more than $5,000. Part II can be duplicated if additional space is needed. (b) IRS code section and EIN (if applicable) (c) Region (d) Purpose of grant (e) Amount of cash grant (1) NORTH AMERICA RSCH SUBAWRD 146,440. (2) NORTH AMERICA RSCH SUBAWRD 431,390. (3) EAST ASIA/PACIFIC RSCH SUBAWRD 10,800. (4) EAST ASIA/PACIFIC RSCH SUBAWRD 56,751. (5) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 78,339. (6) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 283,296. (7) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 162,138. (8) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 188,750. (9) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 434,037. (10) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 184,950. (11) NORTH AMERICA RSCH SUBAWRD 19,263. (12) EAST ASIA/PACIFIC RSCH SUBAWRD 171,139. (13) NORTH AMERICA RSCH SUBAWRD 31,990. (14) NORTH AMERICA RSCH SUBAWRD 118,855. (15) NORTH AMERICA RSCH SUBAWRD 13,922. (16) EAST ASIA/PACIFIC RSCH SUBAWRD 273,500. 2 3 (f) Manner of cash disbursement (g) Amount of noncash assistance (h) Description of noncash assistance 2 (i) Method of valuation (book, FMV, appraisal, other) Enter total number of recipient organizations listed above that are recognized as charities by the foreign country, recognized as tax-exempt by the IRS, or for which the grantee or counsel has provided a section 501(c)(3) equivalency letter Enter total number of other organizations or entities m m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm II JSA 7E1275 1.000 79590J 7377 V 17-7.10 Schedule F (Form 990) 2017 UNIVERSITY OF SOUTHERN CALIFORNIA PUBLIC DISCLOSURE COPY 95-1642394 Schedule F (Form 990) 2017 Part II (a) Name of organization 1 Page Grants and Other Assistance to Organizations or Entities Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 15, for any recipient who received more than $5,000. Part II can be duplicated if additional space is needed. (b) IRS code section and EIN (if applicable) (c) Region (d) Purpose of grant (e) Amount of cash grant (1) EAST ASIA/PACIFIC RSCH SUBAWRD 12,500. (2) EUROPE/ICELAND/GREENLAND RSCH SUBAWRD 29,050. (f) Manner of cash disbursement (g) Amount of noncash assistance (h) Description of noncash assistance 2 (i) Method of valuation (book, FMV, appraisal, other) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) 2 3 Enter total number of recipient organizations listed above that are recognized as charities by the foreign country, recognized as tax-exempt by the IRS, or for which the grantee or counsel has provided a section 501(c)(3) equivalency letter Enter total number of other organizations or entities m m m m m m m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm II JSA 7E1275 1.000 79590J 7377 V 17-7.10 34. Schedule F (Form 990) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule F (Form 990) 2017 Part III Page Grants and Other Assistance to Individuals Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 16. Part III can be duplicated if additional space is needed. (a) Type of grant or assistance (b) Region (c) Number of recipients (d) Amount of cash grant (e) Manner of cash disbursement (f) Amount of noncash assistance (g) Description of noncash assistance 3 (h) Method of valuation (book, FMV, appraisal, other) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) Schedule F (Form 990) 2017 JSA 7E1276 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule F (Form 990) 2017 Part IV 1 Page Was the organization a U.S. transferor of property to a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation (see Instructions for Form 926) X Yes No Did the organization have an interest in a foreign trust during the tax year? If "Yes," the organization may be required to separately file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, and/or Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner (see Instructions for Forms 3520 and 3520-A; don't file with Form 990) X Yes No Did the organization have an ownership interest in a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations (see Instructions for Form 5471) X Yes No Was the organization a direct or indirect shareholder of a passive foreign investment company or a qualified electing fund during the tax year? If "Yes," the organization may be required to file Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund (see Instructions for Form 8621) X Yes No Did the organization have an ownership interest in a foreign partnership during the tax year? If "Yes," the organization may be required to file Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships (see Instructions for Form 8865) X Yes No Did the organization have any operations in or related to any boycotting countries during the tax year? If "Yes," the organization may be required to separately file Form 5713, International Boycott Report (see Instructions for Form 5713; don't file with Form 990) X Yes No mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 2 mmmmm 3 mmmmmmmmmmmmmmmmmmmmm 4 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 5 mmmmmmmmmmmmmmmmmmmmmmmmm 6 4 Foreign Forms mmmmmmmmmmmmmmmmmmmmmmmmm Schedule F (Form 990) 2017 JSA 7E1277 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule F (Form 990) 2017 Part V Page 5 Supplemental Information Provide the information required by Part I, line 2 (monitoring of funds); Part I, line 3, column (f) (accounting method; amounts of investments vs. expenditures per region); Part II, line 1 (accounting method); Part III (accounting method); and Part III, column (c) (estimated number of recipients), as applicable. Also complete this part to provide any additional information (see instructions). SCHEDULE F, PART I, LINE 2 THE UNIVERSITY WIRES ITS OFFICE EXPENSES ON A MONTHLY BASIS. THE MONTHLY EXPENSES CONSIST OF FIXED COSTS: PAYROLL, RENT, OCCUPANCY COSTS (SUCH AS PHONE/INTERNET/FAX, CLEANING, ELECTRICITY), CONSULTANTS SUCH AS ACCOUNTANTS, BANK FEES AND NON-FIXED, SUCH AS SUPPLIES, TRAVEL, MEALS AND ENTERTAINMENT AND SOME MISCELLANEOUS COSTS. THE OFFICES SEND THEIR EXPENSE REPORTS INCLUDING BACKUP (INVOICES/RECEIPTS) TO THE UNIVERSITY ALONG WITH MONTHLY BANK STATEMENTS. ALL EXPENDITURES DOMESTIC AND INTERNATIONAL MUST COMPLY WITH OUR EXPENDITURE MANUAL AND THE UNIVERSITY'S SENIOR BUSINESS OFFICERS ARE RESPONSIBLE FOR COMPLYING WITH THESE POLICIES AND REGULATIONS. EXPENDITURES RELATED TO RESEARCH GRANTS ARE CONTINUALLY MONITORED BY PRINCIPAL INVESTIGATORS ASSOCIATED WITH THAT AWARD. SCHEDULE F, PART I, LINE 3, COLUMN (F) AND SCHEDULE F, PART II, LINE 1 EXPENSES REPORTED IN SCHEDULE F, PART I, LINE 3, COLUMN (F) AND SCHEDULE F, PART II, LINE 1 ARE DERIVED FROM USC'S BOOKS AND RECORDS, WHICH ARE MAINTAINED ON THE ACCRUAL BASIS OF ACCOUNTING. Schedule F (Form 990) 2017 JSA 7E1502 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY SCHEDULE G (Form 990 or 990-EZ) Supplemental Information Regarding Fundraising or Gaming Activities Complete if the organization answered "Yes" on Form 990, Part IV, line 17, 18, or 19, or if the organization entered more than $15,000 on Form 990-EZ, line 6a. Department of the Treasury Internal Revenue Service Name of the organization I I Attach to Form 990 or Form 990-EZ. OMB No. 1545-0047 À¾µ» Open to Public Inspection Go to www.irs.gov/Form990 for the latest instructions. Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Fundraising Activities. Complete if the organization answered "Yes" on Form 990, Part IV, line 17. Part I Form 990-EZ filers are not required to complete this part. 1 a b c d Indicate whether the organization raised funds through any Mail solicitations e Internet and email solicitations f X Phone solicitations g In-person solicitations of the following activities. Check all that apply. Solicitation of non-government grants Solicitation of government grants Special fundraising events 2 a Did the organization have a written or oral agreement with any individual (including officers, directors, trustees, X Yes or key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services? No b If "Yes," list the 10 highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is to be compensated at least $5,000 by the organization. (i) Name and address of individual or entity (fundraiser) (ii) Activity (iii) Did fundraiser have custody or control of contributions? Yes 1 RUFFALO CODY/NOEL LEVITZ PHONE SOLICIT. (iv) Gross receipts from activity (v) Amount paid to (or retained by) fundraiser listed in col. (i) (vi) Amount paid to (or retained by) organization No X 612,936. 643,214. -30,278. 2 3 4 5 6 7 8 9 10 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmI 612,936. 643,214. -30,278. Total 3 List all states in which the organization is registered or licensed to solicit contributions or has been notified it is exempt from registration or licensing. AR,CA,CO,CT,FL,GA,IN, IA,KS,KY,LA,MD,MA,MI,MN,MS,NH,NJ,NM,NY,NC,OH, OR,PA,SC,SD,TN,VT,VA,WA,WI, For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. JSA 7E1281 1.000 79590J 7377 V 17-7.10 Schedule G (Form 990 or 990-EZ) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule G (Form 990 or 990-EZ) 2017 Part II Page 2 Fundraising Events. Complete if the organization answered "Yes" on Form 990, Part IV, line 18, or reported more than $15,000 of fundraising event contributions and gross income on Form 990-EZ, lines 1 and 6b. List events with gross receipts greater than $5,000. (a) Event #1 (b) Event #2 ALUMNI AWARDS Revenue (event type) mmmmmmmmmmmm mmmmmmmmm mmmmmmmmmmmmmmmmm mmmmmmmmmmmmmm mmmmmmmmmmmm mmmmmmmmmm mmmmmmmmm mmmmmmmmmmmm mmmmmmmm (c) Other events SCRIPTER AWARD (event type) 1. (total number) (d) Total events (add col. (a) through col. (c)) 1 Gross receipts 808,065. 382,005. 141,650. 1,331,720. 2 Less: Contributions 3 Gross income (line 1 minus line 2) 643,415. 356,855. 119,150. 1,119,420. 164,650. 25,150. 22,500. 212,300. 5,956. 13,355. 1,736. 21,047. 62,770. 123,602. 15,548. 201,920. 7 Food and beverages 214,952. 50,627. 159,449. 425,028. 8 Entertainment 114,865. 645. 166,357. 281,867. 9 Other direct expenses 116,667. 9,982. 37,474. 164,123. 4 Cash prizes Direct Expenses 5 Noncash prizes 6 Rent/facility costs 10 Direct expense summary. Add lines 4 through 9 in column (d) 11 Net income summary. Subtract line 10 from line 3, column (d) Direct Expenses Revenue Part III mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm I I 1,093,985. -881,685. Gaming. Complete if the organization answered "Yes" on Form 990, Part IV, line 19, or reported more than $15,000 on Form 990-EZ, line 6a. (b) Pull tabs/instant bingo/progressive bingo (a) Bingo mmmmmmmmmmmm mmmmmmmmmmmmmm mmmmmmmmmmm mmmmmmmmmm mmmmmmmm mmmmmmmmmmmm (d) Total gaming (add col. (a) through col. (c)) (c) Other gaming 1 Gross revenue 2 Cash prizes 3 Noncash prizes 4 Rent/facility costs 5 Other direct expenses 6 Volunteer labor Yes % Yes No No 7 Direct expense summary. Add lines 2 through 5 in column (d) % % Yes No mmmmmmmmmmmmmmmmmmmmmI mmmmmmmmmmmmmmmmmI 8 Net gaming income summary. Subtract line 7 from line 1, column (d) 9 Enter the state(s) in which the organization conducts gaming activities: a Is the organization licensed to conduct gaming activities in each of these states? b If "No," explain: mmmmmmmmmmmmmmmmm Yes No mmmm Yes No 10 a Were any of the organization's gaming licenses revoked, suspended, or terminated during the tax year? b If "Yes," explain: Schedule G (Form 990 or 990-EZ) 2017 JSA 7E1282 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule G (Form 990 or 990-EZ) 2017 mmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Does the organization conduct gaming activities with nonmembers? Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity formed to administer charitable gaming? 13 Indicate the percentage of gaming activity conducted in: a The organization's facility 13a b An outside facility 13b 14 Enter the name and address of the person who prepares the organization's gaming/special events books and records: 11 12 Name Yes No % % I Does the organization have a contract with a third party from whom the organization receives gaming revenue? b If "Yes," enter the amount of gaming revenue received by the organization $ and the amount of gaming revenue retained by the third party $ . c If "Yes," enter name and address of the third party: 15 a mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm I I Yes No I Address I Gaming manager information: 16 Name I Gaming manager compensation Description of services provided Director/officer 17 3 No I Address Name Page Yes I I $ Employee Independent contractor Mandatory distributions: Is the organization required under state law to make charitable distributions from the gaming proceeds to retain the state gaming license? b Enter the amount of distributions required under state law to be distributed to other exempt organizations or spent in the organization's own exempt activities during the tax year $ a Part IV mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm I Supplemental Information. Provide the explanation required by Part I, line 2b, columns (iii) and (v), and Yes No Part III, lines 9, 9b, 10b, 15b, 15c, 16, and 17b, as applicable. Also provide any additional information (see instructions). Schedule G (Form 990 or 990-EZ) 2017 JSA 7E1503 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY OMB No. 1545-0047 Hospitals SCHEDULE H (Form 990) I Department of the Treasury Internal Revenue Service Name of the organization À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, question 20. Attach to Form 990. Go to www.irs.gov/Form990 for instructions and the latest information. I I Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA Financial Assistance and Certain Other Community Benefits at Cost Part I 95-1642394 mmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 1a Did the organization have a financial assistance policy during the tax year? If "No," skip to question 6a b If "Yes," was it a written policy? 2 If the organization had multiple hospital facilities, indicate which of the following best describes application of the financial assistance policy to its various hospital facilities during the tax year. X Applied uniformly to all hospital facilities Applied uniformly to most hospital facilities Generally tailored to individual hospital facilities Yes No 1a X 1b X Answer the following based on the financial assistance eligibility criteria that applied to the largest number of the organization's patients during the tax year. 3 a Did the organization use Federal Poverty Guidelines (FPG) as a factor in determining eligibility for providing free care? If "Yes," indicate which of the following was the FPG family income limit for eligibility for free care: 100% 150% X 200% Other b Did the organization use FPG as a factor in determining eligibility for providing discounted care? If "Yes," indicate which of the following was the family income limit for eligibility for discounted care: 200% 250% 300% X 3a X % 350% 400% Other mmmmmmmmmmmmm 3b X % c If the organization used factors other than FPG in determining eligibility, describe in Part VI the criteria used for determining eligibility for free or discounted care. Include in the description whether the organization used an asset test or other threshold, regardless of income, as a factor in determining eligibility for free or discounted care. Did the organization's financial assistance policy that applied to the largest number of its patients during the tax year provide for free or discounted care to the "medically indigent"? mmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 4 5a Did the organization budget amounts for free or discounted care provided under its financial assistance policy during the tax year? b If "Yes," did the organization's financial assistance expenses exceed the budgeted amount? c If "Yes" to line 5b, as a result of budget considerations, was the organization unable to provide free or discounted care to a patient who was eligible for free or discounted care? 6a Did the organization prepare a community benefit report during the tax year? b If "Yes," did the organization make it available to the public? Complete the following table using the worksheets provided in the Schedule H instructions. Do not submit these worksheets with the Schedule H. 7 Financial Assistance and Certain Other Community Benefits at Cost Financial Assistance and Means-Tested Government Programs (a) Number of activities or programs (optional) (b) Persons served (optional) (c) Total community benefit expense a Financial Assistance at cost mmmm mmmmmmmm mm mmmmmmmm 2,771,162. (from Worksheet 1) b Medicaid (from Worksheet 3, column a) (d) Direct offsetting revenue (e) Net community benefit expense 4 5a 5b X X X 5c 6a 6b X X X (f) Percent of total expense 2,771,162. .05 265,366,375. 256,209,269. 9,157,106. .17 268,137,537. 256,209,269. 11,928,268. .22 896,758. .02 c Costs of other means-tested d government programs (from Worksheet 3, column b) Total Financial Assistance and Means-Tested Government Programs Other Benefits e f Community health improvement services and community benefit operations (from Worksheet 4) m mmmm mmmmmmmm Health professions education (from Worksheet 5) g 896,758. 55,575,508. 19,153,972. 36,421,536. .68 168,346,039. 307,744,050. 113,062,966. 307,744,050. 55,283,073. 1.03 423,503. 532,985,858. 801,123,395. 439,960,988. 696,170,257. 423,503. 93,024,870. 104,953,138. .01 1.74 1.96 Subsidized health services (from Worksheet 6) h Research (from Worksheet 7) i Cash and in-kind contributions for community benefit (from Worksheet 8) j Total. Other Benefits mmmmmmmm m m mm mm k Total. Add lines 7d and 7j For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1284 1.000 79590J 7377 Schedule H (Form 990) 2017 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 2 Community Building Activities Complete this table if the organization conducted any community building activities during the tax year, and describe in Part VI how its community building activities promoted the health of the communities it serves. Part II (a) Number of activities or programs (optional) (b) Persons served (optional) (c) Total community building expense (d) Direct offsetting revenue (e) Net community building expense (f) Percent of total expense 1 Physical improvements and housing 2 Economic development 31,583. 31,583. 5,338. 5,338. 1,604. 1,604. 38,525. 38,525. 3 Community support 4 Environmental improvements 5 Leadership development and training for community members 6 Coalition building 7 Community health improvement advocacy 8 Workforce development 9 Other 10 Total Part III Bad Debt, Medicare, & Collection Practices Section A. Bad Debt Expense 1 Did the organization report bad debt expense in accordance with Healthcare Financial Management Association Statement No. 15? 2 Enter the amount of the organization's bad debt expense. Explain in Part VI the -8,437,086. methodology used by the organization to estimate this amount 2 3 Enter the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy. Explain in Part VI the methodology used by the organization to estimate this amount and the rationale, 3 if any, for including this portion of bad debt as community benefit mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmm Yes 1 No X mmmmmmmmmmmm Provide in Part VI the text of the footnote to the organization's financial statements that describes bad debt expense or the page number on which this footnote is contained in the attached financial statements. Section B. Medicare 343,350,790. 5 5 Enter total revenue received from Medicare (including DSH and IME) 434,196,146. 6 6 Enter Medicare allowable costs of care relating to payments on line 5 -90,845,356. 7 7 Subtract line 6 from line 5. This is the surplus (or shortfall) 8 Describe in Part VI the extent to which any shortfall reported in line 7 should be treated as community benefit. Also describe in Part VI the costing methodology or source used to determine the amount reported on line 6. Check the box that describes the method used: X Cost to charge ratio Cost accounting system Other Section C. Collection Practices 9a Did the organization have a written debt collection policy during the tax year? 9a 4 mmmmmmmmmm mmmmmmmmmm mmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmm X b If "Yes," did the organization's collection policy that applied to the largest number of its patients during the tax year contain provisions on the 9b X Management Companies and Joint Ventures (owned 10% or more by officers, directors, trustees, key employees, and physicians - see instructions) collection practices to be followed for patients who are known to qualify for financial assistance? Describe in Part VI Part IV (a) Name of entity 1 SEE PART VI 2 3 4 5 6 7 8 9 10 11 12 13 (b) Description of primary activity of entity AMBULATORY SURGICAL JSA 7E1285 1.000 79590J 7377 (c) Organization's profit % or stock ownership % (d) Officers, directors, trustees, or key employees' profit % or stock ownership % (e) Physicians' profit % or stock ownership % 20.00000 Schedule H (Form 990) 2017 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part V Page 3 Facility Information ER-other ER-24 hours Research facility Critical access hospital Teaching hospital Children's hospital KECK HOSPITAL OF USC 1500 SAN PABLO STREET LOS ANGELES CA 90089 WWW.KECKMEDICINE.ORG 930000459 2 USC NORRIS CANCER HOSPITAL 1441 EASTLAKE AVENUE LOS ANGELES CA 90089 WWW.CANCER.KECKMEDICINE.ORG 930000267 3 USC VERDUGO HILLS HOSPITAL 1812 VERDUGO BLVD GLENDALE CA 91208 WWW.USCVHH.ORG 930000173 General medical & surgical How many hospital facilities did the organization operate during 3 the tax year? Name, address, primary website address, and state license number (and if a group return, the name and EIN of the subordinate hospital organization that operates the hospital facility) Licensed hospital Section A. Hospital Facilities (list in order of size, from largest to smallest - see instructions) Other (describe) Facility reporting group 1 X X X X A X X X X A X X X B 4 5 6 7 8 9 10 JSA 7E1286 1.000 79590J 7377 Schedule H (Form 990) 2017 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part V Page 4 Facility Information (continued) Section B. Facility Policies and Practices (complete a separate Section B for each of the hospital facilities or facility reporting groups listed in Part V, Section A) Name of hospital facility or letter of facility reporting group A Line number of hospital facility, or line numbers of hospital facilities in a facility reporting group (from Part V, Section A): 1-2 Yes No Community Health Needs Assessment 1 Was the hospital facility first licensed, registered, or similarly recognized by a state as a hospital facility in the current tax year or the immediately preceding tax year? Was the hospital facility acquired or placed into service as a tax-exempt hospital in the current tax year or the immediately preceding tax year? If "Yes," provide details of the acquisition in Section C During the tax year or either of the two immediately preceding tax years, did the hospital facility conduct a community health needs assessment (CHNA)? If "No," skip to line 12 If "Yes," indicate what the CHNA report describes (check all that apply): X A definition of the community served by the hospital facility X Demographics of the community X Existing health care facilities and resources within the community that are available to respond to the health needs of the community X How data was obtained X The significant health needs of the community X Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups X The process for identifying and prioritizing community health needs and services to meet the community health needs X The process for consulting with persons representing the community's interests X The impact of any actions taken to address the significant health needs identified in the hospital facility's prior CHNA(s) Other (describe in Section C) Indicate the tax year the hospital facility last conducted a CHNA: 20 16 In conducting its most recent CHNA, did the hospital facility take into account input from persons who represent the broad interests of the community served by the hospital facility, including those with special knowledge of or expertise in public health? If "Yes," describe in Section C how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted Was the hospital facility's CHNA conducted with one or more other hospital facilities? If "Yes," list the other hospital facilities in Section C Was the hospital facility's CHNA conducted with one or more organizations other than hospital facilities? If "Yes," list the other organizations in Section C Did the hospital facility make its CHNA report widely available to the public? If "Yes," indicate how the CHNA report was made widely available (check all that apply): X Hospital facility's website (list url): KECKMEDICINE.ORG/COMMUNITY-BENEFIT Other website (list url): X Made a paper copy available for public inspection without charge at the hospital facility Other (describe in Section C) Did the hospital facility adopt an implementation strategy to meet the significant community health needs identified through its most recently conducted CHNA? If "No," skip to line 11 Indicate the tax year the hospital facility last adopted an implementation strategy: 20 16 Is the hospital facility's most recently adopted implementation strategy posted on a website? If "Yes," (list url): KECKMEDICINE.ORG/COMMUNITY-BENEFIT If "No," is the hospital facility's most recently adopted implementation strategy attached to this return? Describe in Section C how the hospital facility is addressing the significant needs identified in its most recently conducted CHNA and any such needs that are not being addressed together with the reasons why such needs are not being addressed. Did the organization incur an excise tax under section 4959 for the hospital facility's failure to conduct a CHNA as required by section 501(r)(3)? If "Yes" to line 12a, did the organization file Form 4720 to report the section 4959 excise tax? If "Yes" to line 12b, what is the total amount of section 4959 excise tax the organization reported on Form 4720 for all of its hospital facilities? $ mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmm 2 3 a b c d e f g h i j 4 5 6a b 7 a b c d 8 9 10 a b 11 12 a b c mmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mmmmmmmmmmmmmmmmmmmm mmmmmmmmmmm mmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmm JSA 7E1287 1.000 79590J 7377 1 X 2 X 3 X 5 X 6a X 6b 7 X 8 X 10 X X 10b 12a 12b X Schedule H (Form 990) 2017 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part V Page 4 Facility Information (continued) Section B. Facility Policies and Practices (complete a separate Section B for each of the hospital facilities or facility reporting groups listed in Part V, Section A) Name of hospital facility or letter of facility reporting group B Line number of hospital facility, or line numbers of hospital facilities in a facility reporting group (from Part V, Section A): 3 Yes No Community Health Needs Assessment 1 Was the hospital facility first licensed, registered, or similarly recognized by a state as a hospital facility in the current tax year or the immediately preceding tax year? Was the hospital facility acquired or placed into service as a tax-exempt hospital in the current tax year or the immediately preceding tax year? If "Yes," provide details of the acquisition in Section C During the tax year or either of the two immediately preceding tax years, did the hospital facility conduct a community health needs assessment (CHNA)? If "No," skip to line 12 If "Yes," indicate what the CHNA report describes (check all that apply): X A definition of the community served by the hospital facility X Demographics of the community X Existing health care facilities and resources within the community that are available to respond to the health needs of the community X How data was obtained X The significant health needs of the community X Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups X The process for identifying and prioritizing community health needs and services to meet the community health needs X The process for consulting with persons representing the community's interests X The impact of any actions taken to address the significant health needs identified in the hospital facility's prior CHNA(s) Other (describe in Section C) Indicate the tax year the hospital facility last conducted a CHNA: 20 16 In conducting its most recent CHNA, did the hospital facility take into account input from persons who represent the broad interests of the community served by the hospital facility, including those with special knowledge of or expertise in public health? If "Yes," describe in Section C how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted Was the hospital facility's CHNA conducted with one or more other hospital facilities? If "Yes," list the other hospital facilities in Section C Was the hospital facility's CHNA conducted with one or more organizations other than hospital facilities? If "Yes," list the other organizations in Section C Did the hospital facility make its CHNA report widely available to the public? If "Yes," indicate how the CHNA report was made widely available (check all that apply): X Hospital facility's website (list url): USCVHH.ORG/GIVING/COMMUNITY-BENEFIT Other website (list url): X Made a paper copy available for public inspection without charge at the hospital facility Other (describe in Section C) Did the hospital facility adopt an implementation strategy to meet the significant community health needs identified through its most recently conducted CHNA? If "No," skip to line 11 Indicate the tax year the hospital facility last adopted an implementation strategy: 20 16 Is the hospital facility's most recently adopted implementation strategy posted on a website? If "Yes," (list url): USCVHH.ORG/GIVING/COMMUNITY-BENEFIT If "No," is the hospital facility's most recently adopted implementation strategy attached to this return? Describe in Section C how the hospital facility is addressing the significant needs identified in its most recently conducted CHNA and any such needs that are not being addressed together with the reasons why such needs are not being addressed. Did the organization incur an excise tax under section 4959 for the hospital facility's failure to conduct a CHNA as required by section 501(r)(3)? If "Yes" to line 12a, did the organization file Form 4720 to report the section 4959 excise tax? If "Yes" to line 12b, what is the total amount of section 4959 excise tax the organization reported on Form 4720 for all of its hospital facilities? $ mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmm 2 3 a b c d e f g h i j 4 5 6a b 7 a b c d 8 9 10 a b 11 12 a b c mmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m m m m m m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mmmmmmmmmmmmmmmmmmmm mmmmmmmmmmm mmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmm JSA 7E1287 1.000 79590J 7377 1 X 2 X 3 X 5 X 6a X 6b 7 X 8 X 10 X X 10b 12a 12b X Schedule H (Form 990) 2017 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA Facility Information (continued) Schedule H (Form 990) 2017 Part V 95-1642394 Page 5 Financial Assistance Policy (FAP) Name of hospital facility or letter of facility reporting group A Yes Did the hospital facility have in place during the tax year a written financial assistance policy that: Explained eligibility criteria for financial assistance, and whether such assistance included free or discounted care? If "Yes," indicate the eligibility criteria explained in the FAP: 13 a b c d e f g h 14 15 a b c d e 16 a b c d Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 200.0000 % and FPG family income limit for eligibility for discounted care of 350.0000 % Income level other than FPG (describe in Section C) X Asset level Medical indigency X Insurance status X Underinsurance status Residency Other (describe in Section C) Explained the basis for calculating amounts charged to patients? Explained the method for applying for financial assistance? If "Yes," indicate how the hospital facility's FAP or FAP application form (including accompanying instructions) explained the method for applying for financial assistance (check all that apply): 13 X 14 15 X X 16 X No X mmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmm X Described the information the hospital facility may require an individual to provide as part of his or her application Described the supporting documentation the hospital facility may require an individual to submit as part of his or her application X Provided the contact information of hospital facility staff who can provide an individual with information about the FAP and FAP application process Provided the contact information of nonprofit organizations or government agencies that may be sources of assistance with FAP applications Other (describe in Section C) Was widely publicized within the community served by the hospital facility? If "Yes," indicate how the hospital facility publicized the policy (check all that apply): X The FAP was widely available on a website (list url): SEE SECTION C X The FAP application form was widely available on a website (list url): SEE SECTION C X A plain language summary of the FAP was widely available on a website (list url): SEE SECTION C X The FAP was available upon request and without charge (in public locations in the hospital facility and by mail) X mmmmmmmmmmmmmmmmmmm e X f X g X h X i X j X The FAP application form was available upon request and without charge (in public locations in the hospital facility and by mail) A plain language summary of the FAP was available upon request and without charge (in public locations in the hospital facility and by mail) Individuals were notified about the FAP by being offered a paper copy of the plain language summary of the FAP, by receiving a conspicuous written notice about the FAP on their billing statements, and via conspicuous public displays or other measures reasonably calculated to attract patients' attention Notified members of the community who are most likely to require financial assistance about availability of the FAP The FAP, FAP application form, and plain language summary of the FAP were translated into the primary language(s) spoken by LEP populations Other (describe in Section C) Schedule H (Form 990) 2017 JSA 7E1323 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA Facility Information (continued) Schedule H (Form 990) 2017 Part V 95-1642394 Page 5 Financial Assistance Policy (FAP) Name of hospital facility or letter of facility reporting group B Yes Did the hospital facility have in place during the tax year a written financial assistance policy that: Explained eligibility criteria for financial assistance, and whether such assistance included free or discounted care? If "Yes," indicate the eligibility criteria explained in the FAP: 13 a b c d e f g h 14 15 a b c d e 16 a b c d Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 200.0000 % and FPG family income limit for eligibility for discounted care of 350.0000 % Income level other than FPG (describe in Section C) X Asset level Medical indigency X Insurance status X Underinsurance status Residency Other (describe in Section C) Explained the basis for calculating amounts charged to patients? Explained the method for applying for financial assistance? If "Yes," indicate how the hospital facility's FAP or FAP application form (including accompanying instructions) explained the method for applying for financial assistance (check all that apply): 13 X 14 15 X X 16 X No X mmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmm X Described the information the hospital facility may require an individual to provide as part of his or her application Described the supporting documentation the hospital facility may require an individual to submit as part of his or her application X Provided the contact information of hospital facility staff who can provide an individual with information about the FAP and FAP application process Provided the contact information of nonprofit organizations or government agencies that may be sources of assistance with FAP applications Other (describe in Section C) Was widely publicized within the community served by the hospital facility? If "Yes," indicate how the hospital facility publicized the policy (check all that apply): X The FAP was widely available on a website (list url): SEE SECTION C X The FAP application form was widely available on a website (list url): SEE SECTION C X A plain language summary of the FAP was widely available on a website (list url): SEE SECTION C X The FAP was available upon request and without charge (in public locations in the hospital facility and by mail) X mmmmmmmmmmmmmmmmmmm e X f X g X h X i X j X The FAP application form was available upon request and without charge (in public locations in the hospital facility and by mail) A plain language summary of the FAP was available upon request and without charge (in public locations in the hospital facility and by mail) Individuals were notified about the FAP by being offered a paper copy of the plain language summary of the FAP, by receiving a conspicuous written notice about the FAP on their billing statements, and via conspicuous public displays or other measures reasonably calculated to attract patients' attention Notified members of the community who are most likely to require financial assistance about availability of the FAP The FAP, FAP application form, and plain language summary of the FAP were translated into the primary language(s) spoken by LEP populations Other (describe in Section C) Schedule H (Form 990) 2017 JSA 7E1323 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part V Page Billing and Collections Name of hospital facility or letter of facility reporting group A Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained all of the actions the hospital facility or other authorized party may take upon nonpayment? Check all of the following actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the individual's eligibility under the facility's FAP: 17 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 18 6 Facility Information (continued) Reporting to credit agency(ies) Selling an individual's debt to another party Deferring, denying, or requiring a payment before providing medically necessary care due to nonpayment of a previous bill for care covered under the hospital facility's FAP Actions that require a legal or judicial process d Other similar actions (describe in Section C) e X None of these actions or other similar actions were permitted f 19 Did the hospital facility or other authorized party perform any of the following actions during the tax year before making reasonable efforts to determine the individual's eligibility under the facility's FAP? If "Yes," check all actions in which the hospital facility or a third party engaged: Yes 17 No X a b c mmmmmmmmm X 19 Reporting to credit agency(ies) Selling an individual's debt to another party Deferring, denying, or requiring a payment before providing medically necessary care due to nonpayment of a previous bill for care covered under the hospital facility's FAP d Actions that require a legal or judicial process e Other similar actions (describe in Section C) 20 Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 19 (check all that apply): X Provided a written notice about upcoming ECAs (Extraordinary Collection Action) and a plain language summary of the a FAP at least 30 days before initiating those ECAs X Made a reasonable effort to orally notify individuals about the FAP and FAP application process b X Processed incomplete and complete FAP applications c X Made presumptive eligibility determinations d X Other (describe in Section C) e f None of these efforts were made Policy Relating to Emergency Medical Care a b c Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that required the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility's financial assistance policy? If "No," indicate why: 21 mmmmmmmmmm 21 X The hospital facility did not provide care for any emergency medical conditions The hospital facility's policy was not in writing The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Section C) Other (describe in Section C) a b c d Schedule H (Form 990) 2017 JSA 7E1324 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part V Page Billing and Collections Name of hospital facility or letter of facility reporting group B Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained all of the actions the hospital facility or other authorized party may take upon nonpayment? Check all of the following actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the individual's eligibility under the facility's FAP: 17 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 18 6 Facility Information (continued) Reporting to credit agency(ies) Selling an individual's debt to another party Deferring, denying, or requiring a payment before providing medically necessary care due to nonpayment of a previous bill for care covered under the hospital facility's FAP Actions that require a legal or judicial process d Other similar actions (describe in Section C) e X None of these actions or other similar actions were permitted f 19 Did the hospital facility or other authorized party perform any of the following actions during the tax year before making reasonable efforts to determine the individual's eligibility under the facility's FAP? If "Yes," check all actions in which the hospital facility or a third party engaged: Yes 17 No X a b c mmmmmmmmm X 19 Reporting to credit agency(ies) Selling an individual's debt to another party Deferring, denying, or requiring a payment before providing medically necessary care due to nonpayment of a previous bill for care covered under the hospital facility's FAP d Actions that require a legal or judicial process e Other similar actions (describe in Section C) 20 Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 19 (check all that apply): X Provided a written notice about upcoming ECAs (Extraordinary Collection Action) and a plain language summary of the a FAP at least 30 days before initiating those ECAs X Made a reasonable effort to orally notify individuals about the FAP and FAP application process b X Processed incomplete and complete FAP applications c X Made presumptive eligibility determinations d X Other (describe in Section C) e f None of these efforts were made Policy Relating to Emergency Medical Care a b c Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that required the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility's financial assistance policy? If "No," indicate why: 21 mmmmmmmmmm 21 X The hospital facility did not provide care for any emergency medical conditions The hospital facility's policy was not in writing The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Section C) Other (describe in Section C) a b c d Schedule H (Form 990) 2017 JSA 7E1324 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule H (Form 990) 2017 Part V Page 7 Facility Information (continued) Charges to Individuals Eligible for Assistance Under the FAP (FAP-Eligible Individuals) Name of hospital facility or letter of facility reporting group A Yes 22 Indicate how the hospital facility determined, during the tax year, the maximum amounts that can be charged to FAP-eligible individuals for emergency or other medically necessary care. a The hospital facility used a look-back method based on claims allowed by Medicare fee-for-service during a prior 12-month period b The hospital facility used a look-back method based on claims allowed by Medicare fee-for-service and all private health insurers that pay claims to the hospital facility during a prior 12-month period c The hospital facility used a look-back method based on claims allowed by Medicaid, either alone or in combination with Medicare fee-for-service and all private health insurers that pay claims to the hospital facility during a prior 12-month period d X The hospital facility used a prospective Medicare or Medicaid method 23 During the tax year, did the hospital facility charge any FAP-eligible individual to whom the hospital facility provided emergency or other medically necessary services more than the amounts generally billed to individuals who had insurance covering such care? If "Yes," explain in Section C. 24 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm During the tax year, did the hospital facility charge any FAP-eligible individual an amount equal to the gross charge for any service provided to that individual? If "Yes," explain in Section C. No 23 X 24 X Schedule H (Form 990) 2017 JSA 7E1332 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule H (Form 990) 2017 Part V Page 7 Facility Information (continued) Charges to Individuals Eligible for Assistance Under the FAP (FAP-Eligible Individuals) Name of hospital facility or letter of facility reporting group B Yes 22 Indicate how the hospital facility determined, during the tax year, the maximum amounts that can be charged to FAP-eligible individuals for emergency or other medically necessary care. a The hospital facility used a look-back method based on claims allowed by Medicare fee-for-service during a prior 12-month period b The hospital facility used a look-back method based on claims allowed by Medicare fee-for-service and all private health insurers that pay claims to the hospital facility during a prior 12-month period c The hospital facility used a look-back method based on claims allowed by Medicaid, either alone or in combination with Medicare fee-for-service and all private health insurers that pay claims to the hospital facility during a prior 12-month period d X The hospital facility used a prospective Medicare or Medicaid method 23 During the tax year, did the hospital facility charge any FAP-eligible individual to whom the hospital facility provided emergency or other medically necessary services more than the amounts generally billed to individuals who had insurance covering such care? If "Yes," explain in Section C. 24 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm During the tax year, did the hospital facility charge any FAP-eligible individual an amount equal to the gross charge for any service provided to that individual? If "Yes," explain in Section C. No 23 X 24 X Schedule H (Form 990) 2017 JSA 7E1332 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 8 Facility Information (continued) Part V Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16j, 18e, 19e, 20e, 21c, 21d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A ("A, 1," "A, 4," "B, 2," "B, 3," etc.) and name of hospital facility. A FACILITY REPORTING GROUP A KECK HOSPITAL OF USC & USC NORRIS CANCER HOSPITAL PART V, SECTION B, LINE 5: FIFTEEN TARGETED INTERVIEWS (DURING FEBRUARY & MARCH 2016) WERE USED TO GATHER INFORMATION AND OPINIONS FROM PERSONS WHO REPRESENT THE BROAD INTERESTS OF THE COMMUNITY SERVED BY THE HOSPITALS. INTERVIEWEES INCLUDED INDIVIDUALS WHO ARE LEADERS AND REPRESENTATIVES OF MEDICALLY UNDERSERVED, LOW-INCOME, MINORITY POPULATIONS, OR REGIONAL, STATE OR LOCAL HEALTH OR OTHER DEPARTMENTS OR AGENCIES THAT HAVE "CURRENT DATA OR OTHER INFORMATION RELEVANT TO THE HEALTH NEEDS OF THE COMMUNITY SERVED BY THE HOSPITAL FACILITIES." COMMUNITY INPUT WAS OBTAINED FROM REPRESENTATIVES FROM THE FOLLOWING ORGANIZATIONS: CLINICIA MONSENOR OSCAR A. ROMERO USC MRS T.H. CHAN DIVISION OCCUPATIONAL SCIENCE AND OCCUPATIONAL THERAPY SOUTHERN CALIFORNIA CLINICAL & TRANSLATIONAL SCIENCE INSTITUTE EAST LA COMMUNTY CORPORATION USC PRICE SCHOOL OF PUBLIC POLICY KECK HOSPITAL - USC NORRIS CANCER HOSPITAL CALIFORNIA DIVISION, AMERICAN CANCER SOCIETY LOS ANGELES COUNTY DEPARTMENT OF PUBLIC HEALTH LA COUNTY DEPARTMENT OF HEALTH SERVICES AMBULATORY CARE NETWORK Schedule H (Form 990) 2017 JSA 7E1331 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 8 Facility Information (continued) Part V Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16j, 18e, 19e, 20e, 21c, 21d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A ("A, 1," "A, 4," "B, 2," "B, 3," etc.) and name of hospital facility. USC DIVISION OF BIOKINESIOLOGY AND PHYSICAL THERAPY AT THE OSTROW SCHOOL OF DENTISTRY WESPARK CANCER SUPPORT CENTER PROYECTO PASTORAL DR. FRANCISCO BRAVO MEDICAL MAGNET HIGH SCHOOL USC HEALTH SCIENCES CAMPUS COMMUNITY PARTNERSHIPS IDREAM FOR RACIAL HEALTH EQUITY SECONDARY DATA WERE COLLECTED FROM A VARIETY OF SOURCES TO PRESENT LOS ANGELES COUNTY DEMOGRAPHIC PROFILE, SOCIAL AND ECONOMIC FACTORS, HEALTH ACCESS, MORTALITY, BIRTH CHARACTERISTICS, CHRONIC DISEASE, HEALTH BEHAVIORS, MENTAL HEALTH, SUBSTANCE ABUSE, AND PREVENTIVE PRACTICES. SOURCES OF DATA INCLUDE THE U.S. CENSUS AMERICAN COMMUNITY SURVEY, THE CALIFORNIA HEALTH INTERVIEW SURVEY, THE CALIFORNIA DEPARTMENT OF PUBLIC HEALTH, THE CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT, THE LOS ANGELES COUNTY HEALTH SURVEY, THE LOS ANGELES HOMELESS SERVICES AUTHORITY, THE UNIFORM DATA SYSTEM, THE NATIONAL CANCER INSTITUTE, THE CALIFORNIA DEPARTMENT OF EDUCATION, AND OTHERS. WHEN PERTINENT, THESE DATA SETS ARE PRESENTED IN THE CONTEXT OF CALIFORNIA STATE. PART V, SECTION B, LINE 6(A): THE CHNA WAS CONDUCTED FOR KECK HOSPITAL OF USC AND USC NORRIS CANCER HOSPITAL. Schedule H (Form 990) 2017 JSA 7E1331 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 8 Facility Information (continued) Part V Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16j, 18e, 19e, 20e, 21c, 21d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A ("A, 1," "A, 4," "B, 2," "B, 3," etc.) and name of hospital facility. PART V, SECTION B, LINE 11: THE IMPLEMENTATION STRATEGY ADOPTED BY EACH HOSPITAL ACTIVELY ADDRESSES THE HEALTH NEEDS THAT WERE IDENTIFIED IN THE CHNA AS "PRIORITY HEALTH NEEDS." THE NEEDS THAT WILL BE ADDRESSED BY KECK HOSPITAL OF USC THROUGH ITS COMMUNITY BENEFIT PROGRAMS AND ACTIVITIES ARE: - ACCESS TO CARE - CHRONIC DISEASES - OVERWEIGHT/OBESITY THE NEEDS THAT WILL BE ADDRESSED BY USC NORRIS CANCER HOSPITAL THROUGH ITS COMMUNITY BENEFIT PROGRAMS AND ACTIVITIES ARE: - CANCER - ACCESS TO CARE - CHRONIC DISEASES - OVERWEIGHT/OBESITY THE IMPLEMENTATION STRATEGIES ADOPTED BY KECK HOSPITAL OF USC AND NORRIS CANCER HOSPITAL ACTIVELY ADDRESS HEALTH NEEDS THAT WERE IDENTIFIED IN THE CHNA AS PRIORITY HEALTH NEEDS. KECK HOSPITAL OF USC AND NORRIS CANCER HOSPITAL PLAN TO MEET THE IDENTIFIED PRIORITY HEALTH NEEDS THROUGH A COMMITMENT OF RESOURCES WITH SPECIFIC PROGRAMS AND SERVICES. FOR EACH HEALTH NEED THE HOSPITAL PLANS TO ADDRESS, THE IMPLEMENTATION STRATEGY FOR EACH HOSPITAL DESCRIBES: ACTIONS THE HOSPITALS INTEND TO TAKE, Schedule H (Form 990) 2017 JSA 7E1331 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 8 Facility Information (continued) Part V Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16j, 18e, 19e, 20e, 21c, 21d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A ("A, 1," "A, 4," "B, 2," "B, 3," etc.) and name of hospital facility. INCLUDING PROGRAMS AND RESOURCES THEY PLAN TO COMMIT, PLANNED COLLABORATION BETWEEN THE HOSPITALS AND COMMUNITY ORGANIZATIONS, AND ANTICIPATED IMPACTS OF THESE ACTIONS. CERTAIN OTHER HEALTH NEEDS WERE IDENTIFIED BUT ARE NOT SPECIFICALLY ADDRESSED IN THE IMPLEMENTATION STRATEGY. THESE INCLUDE, FOR EXAMPLE: DENTAL HEALTH, MENTAL HEALTH, COMMUNITY SAFETY, STDS AND SUBSTANCE ABUSE. WHILE THE HOSPITALS ADDRESS THESE ISSUES ON A DAY TO DAY BASIS IN THE NORMAL COURSE OF OPERATIONS, THEY HAVE CHOSEN NOT TO FOCUS THESE IMPLEMENTATION PLANS ON THESE OTHER NEEDS BECAUSE THEY BELIEVE THEY CAN HAVE A GREATER IMPACT ON THE PRIORITY HEALTH NEEDS SELECTED. THESE OTHER HEALTH NEEDS ARE LESS ALIGNED WITH THE HOSPITALS' STRATEGIC INITIATIVES. PART V, SECTION B, LINE 16(A)-(C): WWW.KECKMEDICINE.ORG/FINANCIAL-ASSISTANCE-PROGRAM/ PART V, SECTION B, LINE 16(J): PLEASE REFER TO PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE IN PART VI. PART V, SECTION B, LINE 20(E): THE HOSPITALS NOTIFIED INDIVIDUALS OF THE FINANCIAL ASSISTANCE POLICY IN COMMUNICATIONS WITH THE INDIVIDUALS REGARDING THE INDIVIDUALS' BILLS. Schedule H (Form 990) 2017 JSA 7E1331 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 8 Facility Information (continued) Part V Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16j, 18e, 19e, 20e, 21c, 21d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A ("A, 1," "A, 4," "B, 2," "B, 3," etc.) and name of hospital facility. B FACILITY REPORTING GROUP B USC VERDUGO HILLS HOSPITAL PART V, SECTION B, LINE 5: TWO COMMUNITY FOCUS GROUPS HELD ON TUESDAY, APRIL 5 AND THURSDAY, APRIL 7, 2016 WERE ATTENDED BY 48 PEOPLE INCLUDING HEALTH CARE PROFESSIONALS, SOCIAL SERVICE PROVIDERS, CITY AND PUBLIC HEALTH OFFICIALS, MEMBERS FROM THE LOCAL POLICE DEPARTMENT AND OTHER COMMUNITY LEADERS. PARTICIPANTS WERE INVITED BY THE GLENDALE HOSPITAL COLLABORATIVE, LEVERAGING ITS EXTENSIVE NETWORKS AND RELATIONSHIPS WITHIN THE GREATER GLENDALE AREA AND THE GLENDALE HEALTHIER COMMUNITY COALITION. THESE STAKEHOLDERS REPRESENTED A BROAD RANGE OF GEOGRAPHIC, PUBLIC HEALTH, AND POPULATION INTEREST IN COMPLIANCE WITH THE ACA. THE GOAL OF THIS COMPONENT OF THE CHNA WAS TO IDENTIFY BROAD HEALTH OUTCOMES AND DRIVERS (WHICH, COMBINED ARE HEALTH NEEDS), AS WELL AS ASSETS AND GAPS IN RESOURCES, THROUGH THE PERCEPTIONS AND KNOWLEDGE OF VARIED AND MULTIPLE STAKEHOLDERS. THE CHNA INCLUDED THE COLLECTION OF OVER 300 DATA INDICATORS THAT HELPED ILLUSTRATE THE HEALTH STATES OF THE COMMUNITY. SECONDARY DATA WERE COLLECTED FROM A WIDE RANGE OF LOCAL, COUNTY, STATE, AND NATIONAL SOURCES TO PRESENT DEMOGRAPHICS, MORTALITY, MORBIDITY, HEALTH BEHAVIORS, CLINICAL CARE, SOCIAL AND ECONOMIC FACTORS, AND PHYSICAL ENVIRONMENT. THESE Schedule H (Form 990) 2017 JSA 7E1331 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 8 Facility Information (continued) Part V Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16j, 18e, 19e, 20e, 21c, 21d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A ("A, 1," "A, 4," "B, 2," "B, 3," etc.) and name of hospital facility. CATEGORIES ARE BASED ON THE MOBILIZING ACTION TOWARD COMMUNITY HEALTH (MATCH) FRAMEWORK, WHICH ILLUSTRATES THE INTERRELATIONSHIPS AMONG THE ELEMENTS OF HEALTH AND THEIR RELATIONSHIP TO EACH OTHER: SOCIAL AND ECONOMIC FACTORS, HEALTH BEHAVIORS, CLINICAL CARE, PHYSICAL, ENVIRONMENTAL, AND HEALTH OUTCOMES. COMMUNITY INPUT WAS OBTAINED FROM REPRESENTATIVES FROM THE FOLLOWING ORGANIZATIONS: GLENDALE FIRE DEPARTMENT YWCA OF GLENDALE FAMILY PROMISE OF THE VERDUGOS DIGNITY HEALTH GLENDALE MEMORIAL HOSPITAL GLENDALE ADVENTIST MEDICAL CENTER PLANNED PARENTHOOD, PASADENA & SAN GABRIEL VALLEY GLENDALE COMMUNITY COLLEGE COMMUNITY FOUNDATION OF THE VERDUGOS GLENDALE CHAMBER OF COMMERCE CITY OF GLENDALE ASCENSIA CALIFORNIA STATE UNIVERSITY, NORTHRIDGE DIDI HIRSCH MENTAL HEALTH SERVICES GLENDALE COMMUNITY FREE HEALTH CLINIC WELLNESS WORKS AMERICAN DIABETES ASSOCIATION Schedule H (Form 990) 2017 JSA 7E1331 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 8 Facility Information (continued) Part V Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16j, 18e, 19e, 20e, 21c, 21d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A ("A, 1," "A, 4," "B, 2," "B, 3," etc.) and name of hospital facility. PARTNERS IN CARE FOUNDATION HEALTHCARE MANAGEMENT SERVICES LOS ANGELES COUNTY DEPARTMENT OF PUBLIC HEALTH, SPA 1&2 ARMENIAN RELIEF SOCIETY, SEPAN CHAPTER BLUE SHIELD OF CALIFORNIA GLENDALE COMMUNITY SERVICES AND PARKS LOS ANGELES COUNTY DEPARTMENT OF PUBLIC HEALTH THE CAMPBELL CENTER AMERICAN CANCER SOCIETY BOY SCOUTS OF AMERICA VERDUGO HILLS COUNCIL AMERICAN RED CROSS - GLENDALE CHAPTER GLENDALE NEWS PRESS ARMENIAN AMERICAN MEDICAL SOCIETY PARTNERS IN CARE FOUNDATION PACIFIC CLINICS HEALTH SERVICES ADVISORY GROUP DOOR OF HOPE GLENDALE POLICE DEPARTMENT CITY OF GLENDALE YMCA OF THE FOOTHILLS GLENDALE COMMUNITIES INITIATIVE GLENDALE HEALTHY KIDS USC VERDUGO HILLS HOSPITAL YMCA Schedule H (Form 990) 2017 JSA 7E1331 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 8 Facility Information (continued) Part V Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16j, 18e, 19e, 20e, 21c, 21d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A ("A, 1," "A, 4," "B, 2," "B, 3," etc.) and name of hospital facility. PART V, SECTION B, LINE 6(A): VERDUGO HILLS HOSPITAL COLLABORATED WITH GLENDALE ADVENTIST MEDICAL CENTER AND GLENDALE MEMORIAL HOSPITAL AND HEALTH CENTER TO WORK WITH THE CENTER FOR NONPROFIT MANAGEMENT CONSULTING TEAM IN CONDUCTING THE COMMUNITY HEALTH NEEDS ASSESSMENT. PART V, SECTION B, LINE 11: THE SIGNIFICANT HEALTH NEEDS IDENTIFIED FROM THE CHNA WERE PRIORITIZED BY COMMUNITY STAKEHOLDERS THROUGH A STRUCTURED PROCESS USING DEFINED CRITERIA. THIS IMPLEMENTATION STRATEGY FOCUSES ON THE PRIORITY HEALTH NEEDS THAT WILL BE ADDRESSED BY USC VERDUGO HILLS HOSPITAL THROUGH ITS COMMUNITY BENEFIT PROGRAMS AND ACTIVITIES. THEY ARE: - ACCESS TO CARE - CANCER - DIABETES - MENTAL HEALTH - OVERWEIGHT/OBESITY THE IMPLEMENTATION STRATEGY ADOPTED BY USC VERDUGO HILLS HOSPITAL ACTIVELY ADDRESSES HEALTH NEEDS THAT WERE IDENTIFIED IN THE CHNA AS PRIORITY HEALTH NEEDS. USC VERDUGO HILLS HOSPITAL PLANS TO MEET THE IDENTIFIED PRIORITY HEALTH NEEDS THROUGH A COMMITMENT OF RESOURCES WITH SPECIFIC PROGRAMS AND SERVICES. FOR EACH HEALTH NEED THE HOSPITAL PLANS TO ADDRESS, THE IMPLEMENTATION STRATEGY DESCRIBES: ACTIONS THE HOSPITAL INTENDS TO TAKE, INCLUDING PROGRAMS AND RESOURCES IT PLANS TO COMMIT, Schedule H (Form 990) 2017 JSA 7E1331 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 8 Facility Information (continued) Part V Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16j, 18e, 19e, 20e, 21c, 21d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A ("A, 1," "A, 4," "B, 2," "B, 3," etc.) and name of hospital facility. PLANNED COLLABORATION BETWEEN THE HOSPITAL AND COMMUNITY ORGANIZATIONS, AND ANTICIPATED IMPACTS OF THESE ACTIONS. IN ADDITION TO THE SPECIFIC STRATEGIES FOR THE SELECTED PRIORITY HEALTH NEEDS, USC VERDUGO HILLS HOSPITAL WILL INVESTIGATE THE DEVELOPMENT OF A COMMUNITY GRANTS PROGRAM TO PROVIDE FINANCIAL AND IN-KIND SUPPORT TO COMMUNITY ORGANIZATIONS ADDRESSING THESE NEEDS. OTHER HEALTH NEEDS WERE IDENTIFIED BUT ARE NOT SPECIFICALLY ADDRESSED IN THE IMPLEMENTATION STRATEGY. THESE INCLUDE: CARDIOVASCULAR DISEASE, GERIATRIC SUPPORT,COMMUNICABLE/INFECTIOUS DISEASES, DENTAL CARE, HOMELESSNESS/HOUSING, POVERTY, PREVENTIVE WELLNESS, STDS, SUBSTANCE ABUSE, TRANSPORTATION, AND VIOLENCE/INJURY. WHILE THESE ISSUES ARE ADDRESSED ON A DAY-TO-DAY BASIS IN THE NORMAL COURSE OF OPERATIONS, THE HOSPITAL HAS CHOSEN NOT TO FOCUS THIS IMPLEMENTATION PLAN ON THESE OTHER NEEDS AS IT BELIEVES THAT IT CAN HAVE A GREATER IMPACT ON THE PRIORITY HEALTH NEEDS THAT WERE SELECTED. THESE OTHER HEALTH NEEDS ARE LESS ALIGNED WITH THE HOSPITAL'S STRATEGIC INITIATIVES. ADDITIONALLY, WHILE SOME OF THESE NEEDS ARE NOT BEING DIRECTLY ADDRESSED, IT SHOULD ALSO BE NOTED THAT HEALTH NEEDS CAN INFLUENCE ONE ANOTHER. FOR EXAMPLE, REDUCING WEIGHT AND IMPROVING NUTRITION AND PHYSICAL ACTIVITY HAVE BEEN SHOWN TO POSITIVELY INFLUENCE CARDIOVASCULAR DISEASE. PART V, SECTION B, LINE 16(A)-(C): HTTPS://USCVHH.ORG/PATIENTS-AND-VISITORS/FINANCIAL-INFORMATION Schedule H (Form 990) 2017 JSA 7E1331 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 8 Facility Information (continued) Part V Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16j, 18e, 19e, 20e, 21c, 21d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A ("A, 1," "A, 4," "B, 2," "B, 3," etc.) and name of hospital facility. PART V, SECTION B, LINE 16(J): PLEASE REFER TO PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE IN PART VI. PART V, SECTION B, LINE 20(E): THE HOSPITALS NOTIFIED INDIVIDUALS OF THE FINANCIAL ASSISTANCE POLICY IN COMMUNICATIONS WITH THE INDIVIDUALS REGARDING THE INDIVIDUALS' BILLS. Schedule H (Form 990) 2017 JSA 7E1331 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Page 9 Facility Information (continued) Part V Section D. Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, from largest to smallest) How many non-hospital health care facilities did the organization operate during the tax year? Name and address 1 1 Type of Facility (describe) USC ENGEMANN STUDENT HEALTH CENTER (UPC) 1031 WEST 34TH STREET LOS ANGELES CA 90089-3261 OUTPATIENT CLINIC 2 3 4 5 6 7 8 9 10 Schedule H (Form 990) 2017 JSA 7E1325 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. PART I, LINE 3C: THE DISCOUNT AMOUNT IS BASED ON FAMILY INCOME COMPARED TO THE FEDERAL POVERTY LEVEL ("FPL") FOR THE CURRENT YEAR. PATIENTS WITH FAMILY INCOME UNDER 200% FPL WILL BE ELIGIBLE FOR FREE CARE FOR THE DATES OF SERVICES FOR WHICH AN APPLICATION IS COMPLETED. PATIENTS WITH FAMILY INCOME BETWEEN UNINSURED OR UNDER-INSURED FOR CARE AT A SLIDING SCALE DISCOUNT. 201% AND 350% FPL WILL BE ELIGIBLE UNINSURED PATIENTS WHOSE FAMILY INCOME EXCEEDS 350% OF THE FPL WILL RECEIVE THE COMPACT DISCOUNTED RATE. IF IT IS DETERMINED THAT THE FAMILY INCOME IS ABOVE 400% OF THE FPL, THE HOSPITALS MAY STILL CONSIDER THE PATIENT ELIGIBLE FOR FINANCIAL ASSISTANCE AND REQUIRE THE FOLLOWING INFORMATION BE PROVIDED: INDIVIDUAL OR FAMILY NET WORTH, INCLUDING ASSETS, BOTH LIQUID AND NON-LIQUID, LIABILITIES AND CLAIMS AGAINST ASSETS; EMPLOYMENT STATUS WILL BE CONSIDERED IN THE CONTEXT OF WHETHER THE LIKELIHOOD OF FUTURE EARNINGS WILL BE SUFFICIENT TO MEET THE COST OF PAYING FOR HEALTHCARE SERVICES WITHIN A REASONABLE PERIOD OF TIME; UNUSUAL EXPENSES OR LIABILITIES; AND ADDITIONAL INFORMATION AS REQUIRED FOR SPECIAL CIRCUMSTANCES. Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. PART I, LINE 7: THE AMOUNTS REPORTED IN PART I, LINE 7 FOLLOW THE FORM 990, SCHEDULE H INSTRUCTIONS BY ADDRESSING ALL PATIENT SEGMENTS. THE TOTAL PERCENTAGE OF FINANCIAL ASSISTANCE AND CERTAIN OTHER COMMUNITY BENEFITS AT COST ON LINE 7 WAS CALCULATED (USING A COST TO CHARGE RATIO) FOR FY18 ON A UNIVERSITY-WIDE BASIS AS REQUIRED PER THE FORM 990 INSTRUCTIONS. THE CALCULATION ON A HOSPITAL-ONLY BASIS WOULD RESULT IN A TOTAL PERCENTAGE OF 7.73%, CONSISTENT WITH PEER ORGANIZATIONS. PART II, LINE 8: ECONOMIC DEVELOPMENT: USC VERDUGO HILLS HOSPITAL ACTIVELY SUPPORTED ISSUES IMPACTING COMMUNITY HEALTH AND SAFETY BY PARTNERING WITH THE LA CAÑADA FLINTRIDGE CHAMBER OF COMMERCE, CRESCENTA VALLEY CHAMBER OF COMMERCE, THE GLENDALE CHAMBER OF COMMERCE,SUNLAND-TUJUNGA CHAMBER OF COMMERCE, THE MONTROSE VERDUGO CITY CHAMBER OF COMMERCE AND THE GLENDALE KIWANIS CLUB. COMMUNITY SUPPORT: Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. USC VERDUGO HILLS HOSPITAL COLLABORATED WITH A NUMBER OF COMMUNITY PARTNERS IN SUPPORT OF COMMUNITY HEALTH ORGANIZATIONS AND THE BUSINESS COMMUNITY. EFFORTS INCLUDED OUTREACH AND PLANNING TO SUPPORT COMMUNITY EFFORTS. EXAMPLES OF ORGANIZATIONAL PARTNERSHIP MEETINGS INCLUDED THE GLENDALE HEALTHY COMMUNITY COALITION AND GLENDALE HEALTHY KIDS. COALITION BUILDING AND ADVOCACY: HOSPITAL REPRESENTATIVES SERVE ON A NUMBER OF LOCAL, REGIONAL, AND STATE LEVEL ORGANIZATIONS AND COMMITTEES THAT ADDRESS HEALTH IMPROVEMENT AND SUPPORT PROFESSIONAL HEALTH ORGANIZATIONS. USC VERDUGO HILLS HOSPITAL ENGAGED IN ADVOCACY EFFORTS THAT SUPPORTED ACCESS TO HEALTH CARE. WORKFORCE DEVELOPMENT: KECK MEDICINE OF USC CONTINUED ITS EFFORTS TO ENGAGE STUDENTS FROM LOCAL LOS ANGELES SCHOOLS THAT TYPICALLY ENROLL UNDERSERVED STUDENTS. 83 STUDENTS FROM THE BRAVO MEDICAL MAGNET HIGH SCHOOL PARTICIPATED IN A JOB SHADOWING AND MENTORING PROGRAM. EACH SEMESTER, THREE CLASSES OF STUDENTS SPEND 7.5 HOURS A WEEK WORKING WITH STAFF IN A VARIETY OF ROLES Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. AND DEPARTMENTS. ESTABLISHED IN 1970, USC'S MED-COR PROGRAM, WHICH STANDS FOR MEDICAL COUNSELING ORGANIZING AND RECRUITING, WORKS WITH HIGH SCHOOL STUDENTS OF COLOR TO HELP PREPARE THEM FOR CAREERS IN THE HEALTH PROFESSIONS. 18 STUDENTS WERE PROVIDED STRUCTURED ACADEMIC ENRICHMENT IN THE AREAS OF MATHEMATICS, SCIENCE, AND ENGLISH, AS WELL AS ACADEMIC COUNSELING, SAT ASSISTANCE, AND SUMMER INTERNSHIPS AT LOCAL HOSPITALS. THE PROGRAM SERVES STUDENTS FROM FOUR LOCAL SCHOOLS: FRANCISCO BRAVO MEDICAL MAGNET HIGH SCHOOL, KING-DREW MEDICAL MAGNET HIGH SCHOOL, ORTHOPEDIC HOSPITAL MEDICAL MAGNET HIGH SCHOOL, AND VAN NUYS HIGH SCHOOL. AN INTERNSHIP EXPERIENCE ENGAGED 12TH GRADE PASADENA UNIFIED SCHOOL DISTRICT STUDENTS IN A SERIES OF LECTURES ABOUT HEALTH CARE. THE STUDENTS HEARD FROM HOSPITAL STAFF AND TOURED THE HOSPITAL. THEY VIEWED A SURGERY AND GOT TO SEE THE BEHIND THE SCENES WORK OF A NUMBER OF DEPARTMENTS, INCLUDING THE LABORATORY AND PHARMACY. Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. KECK MEDICINE AND KECK HOSPITAL WORKED WITH ALTAMED HEALTH SERVICES (A FEDERALLY QUALIFIED HEALTH CENTER) TO CO-SPONSOR AMERICORPS INTERNS. THE FOCUS IS TO PROMOTE HEALTH CAREER DEVELOPMENT IN LOCAL SCHOOLS AND JOB TRAINING. PART III, LINE 2: THE DETERMINATION OF CHARITY CARE GENERALLY SHOULD BE MADE AT THE TIME OF ADMISSION, OR SHORTLY THEREAFTER. HOWEVER, EVENTS AFTER DISCHARGE MAY CHANGE THE ABILITY OF THE PATIENT TO PAY. DESIGNATION AS CHARITY CARE WILL ONLY BE CONSIDERED AFTER ALL PAYMENT SOURCES HAVE BEEN EXHAUSTED. HOSPITAL CHARGES FOR PATIENT ACCOUNTS IDENTIFIED AS CHARITY CARE AT THE TIME OF ADMISSION OR SERVICE ARE NOT RECOGNIZED BY THE FACILITY AS NET REVENUES OR NET RECEIVABLES. IF PATIENT ACCOUNTS ARE IDENTIFIED AS CHARITY CARE SUBSEQUENT TO THE FACILITY RECOGNIZING THE CHARGES AS REVENUE, AN ADJUSTMENT IS REQUIRED TO CLASSIFY APPROPRIATELY THE REVENUE AND ANY BAD DEBT EXPENSE PREVIOUSLY RECORDED. PART III, LINE 4: Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. NET PATIENT SERVICE REVENUE IS REPORTED AT ESTIMATED NET REALIZABLE AMOUNTS FROM PATIENTS, THIRD PARTY PAYORS, GOVERNMENT PROGRAMS AND OTHERS IN THE PERIOD IN WHICH SERVICES ARE PROVIDED. THE MAJORITY OF THE HOSPITALS' SERVICES ARE RENDERED TO PATIENTS WITH COMMERCIAL OR MANAGED CARE INSURANCE, OR UNDER THE FEDERAL MEDICARE AND CALIFORNIA STATE MEDI-CAL PROGRAMS. REIMBURSEMENT FROM THESE VARIOUS PAYORS IS BASED ON A COMBINATION OF PROSPECTIVELY DETERMINED RATES, DISCOUNTS FROM CHARGES AND HISTORICAL COSTS. AMOUNTS RECEIVED UNDER THE MEDICARE PROGRAM ARE SUBJECT TO RETROACTIVE SETTLEMENTS BASED ON REVIEW AND FINAL DETERMINATION BY PROGRAM INTERMEDIARIES OR THEIR AGENTS. PROVISIONS FOR CONTRACTUAL ADJUSTMENTS AND RETROACTIVE SETTLEMENTS RELATED TO THOSE PAYERS ARE ACCRUED ON AN ESTIMATED BASIS IN THE PERIOD THE RELATED SERVICES ARE RENDERED AND ADJUSTED IN FUTURE PERIODS AS ADDITIONAL INFORMATION BECOMES KNOWN OR AS FINAL SETTLEMENTS ARE DETERMINED. HEALTHCARE SERVICES REVENUES ALSO INCLUDE THE REVENUES ASSOCIATED WITH THE PROFESSIONAL SERVICES AGREEMENT WITH THE COUNTY OF LOS ANGELES. THE ALLOWANCES FOR DOUBTFUL ACCOUNTS ARE BASED UPON MANAGEMENT'S Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING HISTORICAL BUSINESS AND ECONOMIC CONDITIONS. PERIODICALLY THROUGHOUT THE YEAR MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS BASED UPON HISTORICAL WRITE-OFF EXPERIENCE. THE RESULTS OF THIS REVIEW ARE THEN USED TO MAKE ANY MODIFICATIONS TO THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. PART III, LINE 8: THE MEDICARE SHORTFALL OF ($90,845,356) REPORTED IN PART III, LINE 7 SHOULD BE TREATED AS A COMMUNITY BENEFIT BECAUSE THE RATES PAID BY MEDICARE DO NOT ACCURATELY REFLECT THE COST OF CARE PROVIDED BY THE HOSPITALS. ACCORDINGLY, THE HOSPITALS MUST SUBSIDIZE THE COST OF CARE PROVIDED TO MEDICARE BENEFICIARIES WITH OTHER REVENUES. THE COSTING METHODOLOGY USED TO CALCULATE MEDICARE ALLOWABLE COSTS OF CARE REPORTED ON PART III, LINE 6 WAS USING A COST-TO-CHARGE RATIO. Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. PART III, LINE 9B: AS PART OF THEIR MISSION, THE HOSPITALS PROVIDE SERVICES AND A BROAD ARRAY OF BENEFITS TO THE COMMUNITY. THE HOSPITALS' PATIENT ACCEPTANCE POLICY IS BASED ON THEIR MISSION STATEMENTS AND THEIR COMMUNITY SERVICES RESPONSIBILITIES. ACCORDINGLY, THE HOSPITALS ACCEPT PATIENTS IN IMMEDIATE NEED OF CARE, REGARDLESS OF THEIR ABILITY TO PAY. THE HOSPITALS DO NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE BASED ON ESTABLISHED POLICIES OF THE HOSPITALS. THESE POLICIES DEFINE CHARITY SERVICES AS THOSE SERVICES FOR WHICH NO PAYMENT IS DUE FOR ALL OR A PORTION OF THE PATIENT'S BILL. SEE ALSO SCHEDULE H, PART III, LINE 4. PART IV, LINE 1, COLUMN (A) NAME OF ENTITY: BEVERLY HILLS DOCTORS SURGERY CENTER LLC PART VI, LINE 2: NEEDS ASSESSMENT: Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. IN 2016, KECK HOSPITAL OF USC CONDUCTED A COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) AS REQUIRED BY STATE AND FEDERAL LAW. CALIFORNIA SENATE BILL 697 AND THE PATIENT PROTECTION AND AFFORDABLE CARE ACT AND IRS SECTION 501(R)(3) DIRECT TAX EXEMPT HOSPITALS TO CONDUCT A CHNA AND DEVELOP AN IMPLEMENTATION STRATEGY EVERY THREE YEARS. THIS CHNA WAS CARRIED OUT IN PARTNERSHIP WITH USC NORRIS CANCER HOSPITAL. THE CHNA INCORPORATED COMPONENTS OF PRIMARY DATA COLLECTION AND SECONDARY DATA ANALYSIS THAT FOCUS ON THE HEALTH AND SOCIAL NEEDS OF THE SERVICE AREA. SECONDARY DATA WERE COLLECTED FROM A VARIETY OF SOURCES. FIFTEEN TARGETED INTERVIEWS GATHERED INFORMATION AND OPINIONS FROM PERSONS WHO REPRESENTED THE BROAD INTERESTS OF THE COMMUNITY SERVED BY THE HOSPITAL. INTERVIEWEES INCLUDED INDIVIDUALS WHO ARE LEADERS AND REPRESENTATIVES OF MEDICALLY UNDERSERVED, LOW-INCOME, AND MINORITY POPULATIONS, OR REGIONAL, STATE, OR LOCAL HEALTH OR OTHER DEPARTMENTS OR AGENCIES THAT HAVE "CURRENT DATA OR OTHER INFORMATION RELEVANT TO THE HEALTH NEEDS OF THE COMMUNITY SERVED BY THE HOSPITAL FACILITY." INPUT WAS OBTAINED FROM LOS ANGELES COUNTY DEPARTMENT OF PUBLIC HEALTH OFFICIALS. Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. IN 2016, USC VERDUGO HILLS HOSPITAL CONDUCTED A COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) AS REQUIRED BY STATE AND FEDERAL LAW. CALIFORNIA SENATE BILL 697 AND THE PATIENT PROTECTION AND AFFORDABLE CARE ACT AND IRS SECTION 501(R)(3) DIRECT TAX EXEMPT HOSPITALS TO CONDUCT A CHNA AND DEVELOP AN IMPLEMENTATION STRATEGY EVERY THREE YEARS. THIS COMMUNITY HEALTH NEEDS ASSESSMENT WAS CARRIED OUT IN PARTNERSHIP WITH GLENDALE ADVENTIST MEDICAL CENTER AND GLENDALE MEMORIAL HOSPITAL AND HEALTH CENTER. THE CHNA INCORPORATED COMPONENTS OF PRIMARY DATA COLLECTION AND SECONDARY DATA ANALYSIS THAT FOCUS ON THE HEALTH AND SOCIAL NEEDS OF THE SERVICE AREA. SECONDARY DATA WERE COLLECTED FROM A WIDE RANGE OF LOCAL, COUNTY, AND STATE SOURCES. TWO FOCUS GROUPS WERE CONVENED TO OBTAIN INFORMATION AND OPINIONS FROM 48 PERSONS WHO REPRESENTED THE BROAD INTERESTS OF THE COMMUNITY SERVED BY THE HOSPITAL. PARTICIPANTS IN THE FOCUS GROUP INCLUDED INDIVIDUALS WHO ARE LEADERS AND REPRESENTATIVES OF MEDICALLY UNDERSERVED, LOW-INCOME, MINORITY, AND CHRONIC DISEASE POPULATIONS, OR REGIONAL, STATE, OR LOCAL HEALTH OR OTHER DEPARTMENTS OR AGENCIES THAT Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. HAVE CURRENT DATA OR OTHER INFORMATION RELEVANT TO THE HEALTH NEEDS OF THE COMMUNITY SERVED BY THE HOSPITAL FACILITY. PART VI, LINE 3: PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE: USC HOSPITALS SHALL POST NOTICES INFORMING THE PUBLIC OF THE FINANCIAL ASSISTANCE PROGRAM. THESE NOTICES WILL BE POSTED IN HIGH VOLUME INPATIENT AND OUTPATIENT AREAS OF THE HOSPITALS. NOTICES SHALL ALSO BE POSTED IN THE ADMITTING AND FINANCIAL SERVICES DEPARTMENTS. EACH HOSPITAL SHALL PROVIDE PATIENTS WITH A WRITTEN DOCUMENT THAT CONTAINS INFORMATION ABOUT AVAILABILITY OF THE HOSPITALS' DISCOUNT PAYMENT AND CHARITY CARE POLICIES, INCLUDING INFORMATION ABOUT ELIGIBILITY, AS WELL AS CONTACT INFORMATION FOR A HOSPITAL EMPLOYEE OR OFFICE FROM WHICH THE PERSON MAY OBTAIN FURTHER INFORMATION ABOUT THESE POLICIES. THE NOTICE SHALL ALSO BE PROVIDED TO PATIENTS WHO RECEIVE OUTPATIENT CARE AND WHO MAY BE BILLED FOR THE CARE, BUT WHO WERE NOT Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. ADMITTED. THE NOTICE SHALL BE PROVIDED IN ENGLISH, AND IN LANGUAGES OTHER THAN ENGLISH. THE LANGUAGES TO BE PROVIDED SHALL BE DETERMINED IN A MANNER SIMILAR TO THAT REQUIRED PURSUANT TO SECTION 12693.30 OF THE INSURANCE CODE (THRESHOLD LANGUAGES ARE SPANISH AND THOSE LANGUAGES SPOKEN BY 5% OF PATIENTS). DATA MAILERS SENT TO PATIENTS AS PART OF THE ROUTINE BILLING PROCESS WILL CONTAIN INFORMATION ABOUT THE FINANCIAL ASSISTANCE PROGRAM. WRITTEN CORRESPONDENCE TO THE PATIENT REQUIRED BY THIS ARTICLE SHALL ALSO BE IN THE LANGUAGE SPOKEN BY THE PATIENT, CONSISTENT WITH SECTION 12693.30 OF THE INSURANCE CODE AND APPLICABLE STATE AND FEDERAL LAW. AT USC VERDUGO HILLS HOSPITAL, THE FAIR PRICING POLICY IS DESCRIBED TO PATIENTS AND FAMILIES UPON REGISTRATION. THE POLICY IS POSTED AND FORMS ARE MAILED TO PATIENTS AT TIME OF INITIAL BILLING. THE HOSPITALS ALSO ASSIST PATIENTS WITH UNDERSTANDING AND LINKING THEM TO MEDI-CAL. Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. PART VI, LINE 4: COMMUNITY INFORMATION: KECK HOSPITAL OF USC KECK HOSPITAL OF USC IS LOCATED EAST OF DOWNTOWN LOS ANGELES ON USC'S HEALTH SCIENCES CAMPUS. THE HOSPITAL DRAWS PRIMARILY ADULT PATIENTS REGIONALLY FROM SOUTHERN CALIFORNIA, WITH A PRIMARY SERVICE AREA OF LOS ANGELES COUNTY, CALIFORNIA. USC NORRIS CANCER HOSPITAL IS ALSO LOCATED EAST OF DOWNTOWN LOS ANGELES ON USC'S HEALTH SCIENCES CAMPUS. THE HOSPITAL TREATS ADULT CANCER PATIENTS. WHILE THE HOSPITAL DRAWS PATIENTS REGIONALLY, STATEWIDE AND INTERNATIONALLY, ITS PRIMARY SERVICE AREA IS LOS ANGELES COUNTY, CALIFORNIA. THE POPULATION OF L.A. COUNTY IS 9,974,203. CHILDREN AND YOUTH (AGES 0-17) MAKE UP 23.6% OF THE POPULATION; 40.2% ARE 18-44 YEARS OF AGE; 24.7% ARE 45-64; AND 11.5% OF THE POPULATION ARE OLDER ADULTS, 65 YEARS Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. OF AGE AND OLDER. THE MAJORITY POPULATION RACE/ETHNICITY IN THE LOS ANGELES COUNTY IS HISPANIC OR LATINO (48.1%). THE POPULATION. WHITES MAKE UP 27.2% OF ASIANS COMPRISE 13.8% OF THE POPULATION, AND AFRICAN AMERICANS ARE 8% OF THE POPULATION. NATIVE AMERICANS, HAWAIIANS, AND OTHER RACES COMBINED TOTAL 2.8% OF THE POPULATION. IN LA COUNTY, SPANISH IS SPOKEN IN 39.4% OF THE HOMES, 43.2% OF THE RESIDENTS SPEAK ENGLISH ONLY, AND 10.8% SPEAK AN ASIAN LANGUAGE. EDUCATIONAL ATTAINMENT IS CONSIDERED A KEY DRIVER OF HEALTH STATUS, WITH LOW LEVELS OF EDUCATION LINKED TO POVERTY AND POOR HEALTH. IN THE COUNTY, 76.8% OF THE ADULT POPULATION, 25 YEARS AND OLDER, HAVE OBTAINED A HIGH SCHOOL DIPLOMA OR HIGHER EDUCATION. RATE OF 81.5%. THIS IS LOWER THAN THE STATE THE RATE OF POVERTY IN THE COUNTY IS 18.4%, WHICH IS HIGHER THAN THE STATE OVERALL(16.4%). POVERTY INCREASES FOR THE POPULATION AT OR BELOW 200% OF FPL AS 40.9% OF COUNTY RESIDENTS ARE AT 200% OF FPL. IN LOS ANGELES COUNTY, CHILDREN SUFFER WITH HIGHER RATES OF POVERTY THAN THE GENERAL POPULATION. IN THE SERVICE AREA, 26% OF CHILDREN, UNDER AGE 18 YEARS, ARE LIVING IN POVERTY. AMONG FAMILIES Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. WHERE THERE IS A FEMALE HEAD OF HOUSEHOLD AND CHILDREN UNDER 18 YEARS OLD, 38.9% IN THE COUNTY LIVE IN POVERTY. USC VERDUGO HILLS HOSPITAL USC VERDUGO HILLS HOSPITAL IS LOCATED AT 1812 VERDUGO BOULEVARD, GLENDALE, CALIFORNIA 91208. THE HOSPITAL SERVES THE COMMUNITIES OF ALTADENA, EAGLE ROCK, GLENDALE, HIGHLAND PARK, LA CAÑADA FLINTRIDGE, LA CRESCENTA, MONTROSE, PASADENA, SUNLAND, SYLMAR, TUJUNGA, AND VERDUGO CITY. THE POPULATION OF THE SERVICE AREA IS 555,265. CHILDREN AND YOUTH (AGES 0-17) MAKE UP 20.8% OF THE POPULATION; 36.5% ARE 18-44 YEARS OF AGE; 27.9% ARE 45-64; AND 14.8% OF THE POPULATION ARE OLDER ADULTS, 65 YEARS OF AGE AND OLDER. THE RACIAL/ETHNIC COMPOSITION OF THE AREA IS HIGHLY DIVERSE AND GEOGRAPHICALLY CONCENTRATED. OVER HALF OF THE POPULATION (54%) IN THE CITY OF GLENDALE IS FOREIGN BORN, WITH LARGE CONCENTRATIONS OF ARMENIAN AND MEXICAN IMMIGRANTS. OVERALL, 61% OF HOUSEHOLDS IN THE SERVICE AREA DO NOT SPEAK ENGLISH AT HOME: 44% OF HOUSEHOLDS IN THE Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. GLENDALE ZIP CODES REPORTED SPEAKING AN INDO-EUROPEAN LANGUAGE AT HOME, WHILE 57% TO 63% OF HOUSEHOLDS IN HIGHLAND PARK AND SYLMAR REPORTED SPEAKING SPANISH AT HOME. EDUCATIONAL ATTAINMENT IS CONSIDERED A KEY DRIVER OF HEALTH STATUS WITH LOW LEVELS OF EDUCATION LINKED TO POVERTY AND POOR HEALTH. IN THE SERVICE AREA, 84.5% OF THE ADULT POPULATION, 25 YEARS AND OLDER, HAVE OBTAINED A HIGH SCHOOL DIPLOMA OR HIGHER EDUCATION. THE STATE RATE OF 81.5%. THIS IS HIGHER THAN THE UNEMPLOYMENT RATE IN THE SERVICE AREA WAS 7.5%. HOWEVER, IN SOME LOCATIONS, (HIGHLAND PARK AND AREAS OF GLENDALE) (ZIP CODES 91204 AND 91205), THE UNEMPLOYMENT RATES WERE UP TO 9.5%. OVERALL, A LOWER PERCENTAGE OF FAMILIES IN THE SERVICE AREA LIVE BELOW POVERTY (11%) THAN IN THE COUNTY OVERALL(15%), AND 8% OF FAMILIES WITH CHILDREN LIVE BELOW POVERTY IN THE SERVICE AREA. PART VI, LINE 5: PROMOTION OF COMMUNITY HEALTH GRANTS, CASH CONTRIBUTIONS AND SPONSORSHIPS TO COMMUNITY NONPROFIT ORGANIZATIONS AND CHARITY EVENTS WERE MADE TO: Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. -DORR INSTITUTE FOR ARTHRITIS: OPERATION WALK -PROYECTO PASTORAL -USC NORRIS COMPREHENSIVE CANCER CENTER -ADDITIONAL SUPPORT AND IN-KIND DONATIONS TO COMMUNITY PARTNERS, INCLUDING CHARITY EVENTS AND EVENT SPONSORSHIPS. COMMUNITY HEALTH IMPROVEMENT SERVICES: KECK HOSPITAL OF USC COMMUNITY HEALTH EDUCATION HEALTH EDUCATION CLASSES AND EVENTS WERE MADE AVAILABLE TO THE PUBLIC AT NO COST. COMMUNITY HEALTH EDUCATION TARGETED THE COMMUNITY AT LARGE, POPULATIONS WITH, OR AT RISK OF, CHRONIC DISEASE, AND POPULATIONS WITH HEALTH DISPARITIES. EXAMPLES OF COMMUNITY HEALTH EDUCATION ACTIVITIES INCLUDED: - IN PARTNERSHIP WITH THE AMERICAN HEART & STROKE ASSOCIATION, KECK HOSPITAL SPONSORED A TEACHING GARDEN AT HOLLENBECK MIDDLE SCHOOL AND Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. LINCOLN HIGH SCHOOL FOR THE PURPOSE OF TEACHING STUDENTS ABOUT HEALTHY EATING, NUTRITION AND HEALTH AND GENERAL HEALTH PROMOTION PRINCIPLES. -KECK HOSPITAL OF USC HOSTED EDUCATION SEMINARS AND WORKSHOPS ON A VARIETY OF TOPICS OPEN TO THE PUBLIC AND PROVIDED HEALTH EDUCATION INFORMATIONAL MATERIALS. - PUBLIC HEALTH EDUCATION IN THE MEDIA AND COMMUNITY HEALTH AWARENESS EVENTS TO ENCOURAGE HEALTHY BEHAVIORS AND PREVENT CHRONIC AND COMMUNICABLE DISEASES. - THE COMMUNITY WAS SERVED BY A NUMBER OF SUPPORT GROUPS, OPEN TO THE PUBLIC AND OFFERED FREE OF CHARGE, WHICH INCLUDED: -BARIATRIC SUPPORT GROUP -CAREGIVER SUPPORT GROUP -DEEP BRAIN STIMULATION SUPPORT GROUP -MINDFULNESS SUPPORT GROUP Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. -PARKINSON'S SUPPORT GROUP -PULMONARY HYPERTENSION SUPPORT GROUP -STROKE SUPPORT GROUP -TRANSPLANT RECIPIENT AND CAREGIVER SUPPORT -VENTRICULAR ASSIST DEVICE (VAD) SUPPORT GROUP - THE HOSPITAL SUPPORTED A WEEKLY FARMERS MARKET AT HAZARD PARK IN EAST LOS ANGELES. PROFITS FROM THE MARKET PROVIDED FUNDING FOR FRESH FRUITS AND VEGETABLES FOR THE LOCAL COMMUNITY. ADDITIONALLY, A WEEKLY FARMER'S MARKET WAS HELD ON THE CAMPUS OF THE KECK SCHOOL OF MEDICINE LOCATED IN BOYLE HEIGHTS, PROVIDING FRESH FRUITS AND VEGETABLES TO LOCAL FAMILIES. - THE 21ST PROYECTO PASTORAL WOMEN'S HEALTH CONFERENCE WAS HELD AT THE DOLORES MISSION IN BOYLE HEIGHTS. KECK MEDICINE OF USC WAS A SPONSOR OF THIS YEAR'S EVENT. OVER 400 WOMEN ATTENDED WORKSHOPS AND LECTURES THAT FOCUSED ON HEALTH, WELLNESS, AND PERSONAL EMPOWERMENT. BLOOD PRESSURE SCREENINGS WERE PROVIDED TO 200 ATTENDEES. Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. - SIDEWALK EDUCATION EVENTS AT LAC+USC AND UNION STATION PROVIDED DISEASE PREVENTION EDUCATION TO 300 PARTICIPANTS. - THE 23RD PARKINSON'S UPDATE EDUCATIONAL SYMPOSIUM REACHED 350 PERSONS WITH PARKINSON'S DISEASE, THEIR FAMILIES AND CAREGIVERS WITH DISEASE-SPECIFIC INTERNATIONAL. -THE ANNUAL CARNIVAL OF LOVE ON SKID ROW PROVIDED SERVICES FOR 250 HOMELESS LOS ANGELES RESIDENTS. KECK MEDICINE OF USC PARTICIPATED AND DISTRIBUTED HYGIENE KITS, SUNSCREEN, HEALTH EDUCATION MATERIALS, AND BLOOD PRESSURE SCREENING FOR 66 PERSONS. -THE HOSPITAL HELD A STROKE SEMINAR AT THE DOWNTOWN WOMEN'S CENTER SERVING WOMEN EXPERIENCING HOMELESSNESS AND FORMERLY HOMELESS WOMEN. 100 WOMEN LEARNED ABOUT STROKE RISK FACTORS AND SYMPTOMS AND RECEIVED EDUCATIONAL MATERIALS. COMMUNITY BASED CLINICAL SERVICES - THE ROXANNA TODD HODGES STROKE CLINIC OFFERED SCREENING EVENTS IN THE COMMUNITY THAT PROVIDED BLOOD PRESSURE SCREENING FOR 82 PERSONS. IN ADDITION TO THE Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. SCREENINGS, HEALTH EDUCATION WAS PROVIDED ON STROKE PREVENTION. COMMUNITY BASED CLINICAL SERVICES -THE ROXANA TODD HODGES STROKE CLINIC OFFERED SCREENING EVENTS IN THE COMMUNITY THAT PROVIDED BLOOD PRESSURE SCREENING FOR 82 PERSONS. IN ADDITION TO THE SCREENINGS, HEALTH EDUCATION WAS PROVIDED ON STROKE PREVENTION. -KECK MEDICINE OF USC SUPPORTED THE HEALTH PAVILION AT THE 2018 LOS ANGELES TIMES FESTIVAL OF BOOKS, ATTRACTING TENS OF THOUSANDS OF GUESTS FOR A WEEKEND OF SCREENINGS AND HEALTH-RELATED ACTIVITIES. -LA MARATHON - THE HOSPITALS AND DOCTORS OF USC PROVIDED MEDICAL SUPPORT AND SUPPLIES FOR THE RUNNERS IN THE LA MARATHON. HEALTH CARE SUPPORT SERVICES Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. - TAXI VOUCHERS WERE MADE AVAILABLE TO PATIENTS AND FAMILIES FOR WHOM ACCESSING TRANSPORTATION IS A BARRIER TO OBTAINING CARE. - KECK MEDICINE OF USC PROVIDED ACCESS TO AN ELECTRONIC HEALTH LIBRARY AVAILABLE TO THE PUBLIC ON ITS WEBSITE. THE SITE PROVIDED INFORMATION ON HEALTH CONDITIONS, WELLNESS, AND PREVENTION. TELEMEDICINE -KECK HOSPITAL OF USC PROVIDED TELE-STROKE CONSULTATIONS TO SEVERAL CALIFORNIA EMERGENCY DEPARTMENTS. THIS ENABLED PATIENTS TO ACCESS CRITICAL SPECIALTY SERVICES, REGARDLESS OF THEIR ABILITY TO PAY. USC NORRIS CANCER HOSPITAL COMMUNITY HEALTH EDUCATION HEALTH EDUCATION CLASSES AND EVENTS WERE MADE AVAILABLE TO THE PUBLIC AT NO COST. COMMUNITY HEALTH EDUCATION TARGETED THE COMMUNITY AT LARGE, POPULATIONS WITH, OR AT RISK OF, CHRONIC DISEASE, AND POPULATIONS WITH Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. HEALTH DISPARITIES. EXAMPLES OF COMMUNITY HEALTH EDUCATION ACTIVITIES INCLUDED: - USC NORRIS CANCER HOSPITAL HOSTED EDUCATION SEMINARS AND WORKSHOPS ON A VARIETY OF TOPICS OPEN TO THE PUBLIC AND PROVIDED HEALTH EDUCATION INFORMATIONAL MATERIALS. - PUBLIC HEALTH EDUCATION IN THE MEDIA AND COMMUNITY HEALTH AWARENESS EVENTS TO ENCOURAGE HEALTHY BEHAVIORS AND PREVENT CANCER. - THE COMMUNITY WAS SERVED BY A NUMBER OF SUPPORT GROUPS, OPEN TO THE PUBLIC AND OFFERED FREE OF CHARGE, WHICH INCLUDED: -ADOLESCENT AND YOUNG ADULT CANCER SUPPORT GROUP FOR PARENTS AND CAREGIVERS. -BLADDER CANCER SUPPORT GROUP -CAREGIVER SUPPORT GROUP -LUNG CANCER SUPPORT GROUP Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. -MINDFULNESS SUPPORT GROUP -PROSTATE CANCER SUPPORT GROUP - LOOK GOOD FEEL BETTER IS AN AMERICAN CANCER SOCIETY-AFFILIATED PROGRAM OPEN TO ALL WOMEN WITH CANCER WHO ARE UNDERGOING CHEMOTHERAPY, RADIATION, OR OTHER FORMS OF TREATMENT. - THE HOSPITAL SUPPORTED A WEEKLY FARMERS MARKET AT HAZARD PARK IN EAST LOS ANGELES. PROFITS FROM THE MARKET PROVIDED FOR FRESH FRUITS AND VEGETABLES FOR LOCAL COMMUNITY. ADDITIONALLY, A WEEKLY FARMER'S MARKET WAS HELD ON THE CAMPUS OF THE KECK SCHOOL OF MEDICINE LOCATED IN BOYLE HEIGHTS, PROVIDING FRESH FRUITS AND VEGETABLES TO LOCAL FAMILIES. - THE 21ST PROYECTO PASTORAL WOMEN'S HEALTH CONFERENCE WAS HELD AT THE DOLORES MISSION IN BOYLE HEIGHTS. KECK MEDICINE OF USC WAS A SPONSOR OF THIS YEAR'S EVENT. OVER 400 WOMEN ATTENDED WORKSHOPS AND LECTURES THAT FOCUSED ON HEALTH, WELLNESS, AND PERSONAL EMPOWERMENT. BLOOD PRESSURE SCREENINGS WERE PROVIDED TO 200 ATTENDEES. Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. - SIDEWALK EDUCATION EVENTS AT LAC+USC AND UNION STATION PROVIDED DISEASE PREVENTION EDUCATION TO 300 PARTICIPANTS. - THE ANNUAL CARNIVAL OF LOVE ON SKID ROW PROVIDED SERVICES FOR 250 HOMELESS LOS ANGELES RESIDENTS. KECK MEDICINE OF USC PARTICIPATED AND DISTRIBUTED HYGIENE KITS, SUNSCREEN, HEALTH EDUCATION MATERIALS, AND BLOOD PRESSURE SCREENING FOR 66 PERSONS. - OVER 160 PERSONS WITH CANCER ENGAGED IN YOGA CLASSES TO INCREASE RELAXATION AND FLEXIBILITY. - CANCER SURVIVORS SHARED THEIR PERSONAL STORIES THROUGH THEIR WRITTEN WORK AS PERT OF OUR SURVIVORS AUTHOR SERIES. ARTIST AND AUTHOR, STEWART LIFF, SPOKE ABOUT HIS CAREER AS AN AWARD-WINNING VISUAL MANAGEMENT EXPERT. AS A STAGE III COLORECTAL CANCER SURVIVOR, STEWART SHARED HIS COMPELLING PERSONAL STORY AND UNIQUE INSIGHTS INTO HOW WE CAN BEST ADAPT, PRESEVERE, AND MOVE FORWARD AFTER CANCER AND OTHER LIFE CHALLENGES BY Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. FOSTERING CONNECTEDNESS AND BUILDING A PERSONAL TEAM OF CHAMPIONS. -WE PROVIDED CANCER SURVIVORS WITH OPPORTUNITIES TO EXPRESS THEIR CANCER JOURNEY THROUGH ART. WE WELCOME JEAN RICHARDSON, ARTIST AND CANCER SURVIVOR. SHE SHARED HER LIFE JOURNEY AND HOW ART PLAYS AN IMPORTANT ROLE IN THE SURVIVORSHIP. THE SURVIVOR ART SERIES OCCURRED THREE TIMES IN THE YEAR. COMMUNITY BASED CLINICAL SERVICES - THE ROXANNA TODD HODGES STROKE CLINIC OFFERED SCREENING EVENTS IN THE COMMUNITY THAT PROVIDED BLOOD PRESSURE SCREENING FOR 82 PERSONS. IN ADDITION TO THE SCREENINGS, HEALTH EDUCATION INFORMATION ON STROKE PREVENTION WAS PROVIDED. -KECK MEDICINE OF USC SUPPORTED THE HEALTH PAVILION AT THE 2018 LOS ANGELES TIMES FESTIVAL OF BOOKS, ATTRACTING TENS OF THOUSANDS OF GUESTS FOR A WEEKEND OF SCREENINGS AND HEALTH-RELATED ACTIVITIES. Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. - LA MARATHON - THE HOSPITALS AND DOCTORS OF USC PROVIDED MEDICAL SUPPORT AND SUPPLIES FOR THE RUNNERS IN THE LA MARATHON. HEALTH CARE SUPPORT SERVICES - TAXI VOUCHERS WERE MADE AVAILABLE TO PATIENTS AND FAMILIES FOR WHOM ACCESSING TRANSPORTATION IS A BARRIER TO OBTAINING CARE. - KECK MEDICINE OF USC PROVIDED ACCESS TO AN ELECTRONIC HEALTH LIBRARY AVAILABLE TO THE PUBLIC ON ITS WEBSITE. THE SITE PROVIDED INFORMATION ON HEALTH CONDITIONS, WELLNESS, AND PREVENTION. - CANCERHELP IS A COMPUTER-BASED CANCER EDUCATION PROGRAM FROM THE NATIONAL CANCER INSTITUTE. THIS PROGRAM IS AVAILABLE TO PATIENTS, STAFF AND THE PUBLIC. Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. - THE PATIENT EDUCATION AND COMMUNITY OUTREACH CENTER (PEOC) AND JENNIFER DIAMOND CANCER RESOURCE LIBRARY IS A STATE-OF-THE-ART FACILITY WITH PRINT AND ELECTRONIC CANCER EDUCATION AND RESOURCE MATERIALS DEVOTED TO PATIENTS, THEIR FAMILIES AND COMMUNITY MEMBERS SEEKING INFORMATION ON CANCER. THE CENTER ALSO PROVIDED OUTREACH ACTIVITIES AND CONDUCTED INFORMATIONAL PROGRAMS. USC VERDUGO HILLS HOSPITAL COMMUNITY HEALTH EDUCATION HEALTH EDUCATION SEMINARS THE HOSPITAL MADE HEALTH EDUCATION SESSIONS AVAILABLE TO THE PUBLIC. SESSIONS ADDRESSED DISEASE PREVENTION AND HEALTH AND WELLNESS, CANCER PREVENTION AND TREATMENT, ART THERAPY, SUICIDE PREVENTION, HEART HEALTH, WEIGHT LOSS, NUTRITION AND WELLBEING, MEN'S HEALTH AND WOMEN'S HEALTH, MENINGITIS, MENTAL HEALTH, BONE AND JOINT HEALTH, BRAIN HEALTH, STROKE AWARENESS AND HEALTHY AGING. IN FY18, HEALTH EDUCATION SEMINARS REACHED Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. OVER 2,440 PERSONS. COMMUNITY CPR CLASSES AVAILABLE TO THE COMMUNITY INCLUDED: HANDS-ONLY CPR, INFANT CPR, CPR RENEWAL AND CPR INSTRUCTOR TRAINING; 520 PERSONS WERE REACHED. BEGINNINGS EARLY PREGNANCY CLASS AS PART OF THE HOSPITAL'S FAMILY EDUCATION PROGRAM, CLASSES ADDRESSED PREGNANCY-RELATED HEALTH TOPICS INCLUDING NUTRITION, COMMON DISCOMFORTS OF PREGNANCY, RELAXATION TECHNIQUES, AND BABY'S DEVELOPMENT IN THE WOMB. CLASSES WERE OFFERED MONTHLY AND WERE OPEN TO THE PUBLIC; 24 PERSONS PARTICIPATED. A DECISION TO DELIVER AT THE HOSPITAL WAS NOT REQUIRED TO PARTICIPATE. NEW MOTHERS FORUM SUPPORT GROUP WEEKLY DISCUSSION GROUPS WERE OPEN TO THE PUBLIC AND HELPED NEW MOTHERS EASE THROUGH THE ADJUSTMENTS OF MOTHERHOOD. THE SUPPORT GROUP WAS FACILITATED BY A FAMILY EDUCATION PROGRAM INSTRUCTOR; 266 INDIVIDUAL Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. ENCOUNTERS WERE PROVIDED. BREASTFEEDING SUPPORT GROUP AND WORKSHOPS SUPPORT GROUPS AND WORKSHOPS OFFERED BREAST-FEEDING ADVICE AND SUPPORT TO NEW MOTHERS. THE SUPPORT GROUPS WERE FACILITATED BY A LACTATION SPECIALIST. OPEN AND FREE TO THE PUBLIC, BABIES IN ARMS WERE WELCOMED. A TOTAL OF 617 ENCOUNTERS WERE PROVIDED. COMMUNITY SUPPORT GROUPS HEALTH AND WELLNESS SUPPORT GROUPS ENCOMPASSING A VARIETY OF HEALTH AND QUALITY OF LIFE ISSUES MET REGULARLY AT THE HOSPITAL. HEALTH FAIRS AND HEALTH AWARENESS EVENTS THE HOSPITAL PARTICIPATED IN COMMUNITY EVENTS, PROVIDED FIRST AID, AND HOSTED EDUCATIONAL BOOTHS, PROVIDING THE PUBLIC WITH INFORMATION ON RISK PREVENTION AND DISEASE MANAGEMENT. USC VERDUGO HILLS HOSPITAL HOSTED ITS ANNUAL HEALTH AND WELLBEING FAIR AND PARTICIPATED IN THE ST. DOMINIC CHURCH HEALTH MINISTRY HEALTH FAIR, GLENDALE EDUCATIONAL FOUNDATION KIDS Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. FITNESS CHALLENGE, JPL SAFETY FAIR, MONTROSE CHAMBER OF COMMERCE OKTOBERFEST, GOLDEN FUTURES SENIOR EXPO, LA CANADA ELEMENTARY NUTRITION WEEK, CRESCENTA VALLEY HOMETOWN COUNTRY FAIR, AND YMCA FIESTA DAYS RUN. AT THESE EVENTS, THE HOSPITAL PROVIDED HEALTH EDUCATION, RESOURCE INFORMATION AND REFERRALS TO HEALTH AND COMMUNITY SERVICES. IN ADDITION, THEY PROVIDED STROKE SCREENINGS FOR 60 PERSONS, BLOOD PRESSURE SCREENING FOR 240 PERSONS, CHOLESTEROL AND GLUCOSE SCREENINGS FOR 180 PERSONS AND VISION SCREENINGS FOR 180 PERSONS. BALANCE AND SPEECH SCREENINGS WERE ALSO PROVIDED FOR 70 PERSONS. COMMUNITY BASED CLINICAL SERVICES LA CAÑADA UNIFIED SCHOOL DISTRICT TB TESTS USC VERDUGO HILLS HOSPITAL ADMINISTERED FREE TB SCREENINGS TO LA CAÑADA UNIFIED SCHOOL DISTRICT (LCUSD) PARENT VOLUNTEERS. THIS COMMUNITY PROGRAM PROVIDED TB TESTS TO 328 PERSONS. INFLUENZA IMMUNIZATION CLINIC USC VERDUGO HILLS HOSPITAL OFFERED FREE FLU VACCINES IN THE COMMUNITY; Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. 200 VACCINES WERE ADMINISTERED. MAMMOGRAM SCREENINGS USC VERDUGO HILLS HOSPITAL PROVIDED 24 LOW-COST MAMMOGRAM SCREENINGS FOR WOMEN IN LA CAÑADA FLINTRIDGE, GLENDALE, AND MONTROSE. HEALTH CARE SUPPORT SERVICES TRANSPORTATION SERVICES TRANSPORTATION IS A DOCUMENTED BARRIER TO ACCESSING HEALTH CARE SERVICES. THE HOSPITAL PAID FOR TAXI VOUCHERS, AMBULANCE SERVICES, AND VAN TRANSPORTATION FOR LOW-INCOME PATIENTS AND FAMILIES WHO COULD NOT AFFORD TRANSPORTATION TO OBTAIN NEEDED HEALTH CARE SERVICES. PART VI, LINE 6 AFFILIATED HEALTH CARE SYSTEM: THE ORGANIZATION SPONSORS NUMEROUS OUTREACH PROGRAMS THROUGHOUT THE LOCAL COMMUNITY, INCLUDING HEALTH FAIRS, FREE HEALTH SCREENINGS AND FLU SHOTS, EDUCATIONAL BOOTHS, AND SPEAKER SERIES THAT ARE FREE AND OPEN TO THE PUBLIC. IN ADDITION, THE PHYSICIAN Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule H (Form 990) 2017 Part VI Page 10 Supplemental Information Provide the following information. 1 Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b. 2 Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs reported in Part V, Section B. 3 Patient education of eligibility for assistance. Describe how the organization informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the organization's financial assistance policy. 4 Community information. Describe the community the organization serves, taking into account the geographic area and demographic constituents it serves. 5 Promotion of community health. Provide any other information important to describing how the organization's hospital facilities or other health care facilities further its exempt purpose by promoting the health of the community (e.g., open medical staff, community board, use of surplus funds, etc.). 6 Affiliated health care system. If the organization is part of an affiliated health care system, describe the respective roles of the organization and its affiliates in promoting the health of the communities served. 7 State filing of community benefit report. If applicable, identify all states with which the organization, or a related organization, files a community benefit report. FACULTY OF THE KECK SCHOOL OF MEDICINE PROVIDE HEALTH CARE SERVICES TO INDIGENT PATIENTS OF THE COUNTY OF LOS ANGELES THROUGH A CONTRACTUAL RELATIONSHIP WITH THE COUNTY. THESE PATIENTS ARE OFFERED ACCESS TO A WIDE VARIETY OF TREATMENTS THROUGH CLINICAL TRIALS THAT THEY NORMALLY WOULD NOT HAVE ACCESS TO ABSENT THE RELATIONSHIP BETWEEN THE COUNTY AND USC. PART VI, LINE 7: STATE FILING OF COMMUNITY BENEFIT REPORT: A COMMUNITY BENEFIT REPORT FOR EACH HOSPITAL IS FILED IN CALIFORNIA. Schedule H (Form 990) 2017 JSA 7E1327 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY (Form 990) Department of the Treasury Internal Revenue Service I I Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA General Information on Grants and Assistance Part I 2 À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 21 or 22. Attach to Form 990. Go to www.irs.gov/Form990 for the latest information. Name of the organization 1 OMB No. 1545-0047 Grants and Other Assistance to Organizations, Governments, and Individuals in the United States SCHEDULE I 95-1642394 Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees’ eligibility for the grants or assistance, and X Yes the selection criteria used to award the grants or assistance? Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Part II No Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" on Form 990, Part IV, line 21, for any recipient that received more than $5,000. Part II can be duplicated if additional space is needed. 1 (a) Name and address of organization or government (b) EIN (c) IRC section (if applicable) (d) Amount of cash grant (e) Amount of noncash assistance (f) Method of valuation (book, FMV, appraisal, other) (g) Description of noncash assistance (h) Purpose of grant or assistance (1) AMERICAN HEART ASSOCIATION 727 GREENVILLE AVE., DALLAS, TX 75231 13-5613797 501(C)(3) 150,000. GENERAL SUPPORT 95-4607337 501(C)(3) 20,000. GENERAL SUPPORT 95-4302067 501(C)(3) 1,141,160. GENERAL SUPPORT 95-3218396 501(C)(3) 28,500. GENERAL SUPPORT 95-3213958 501(C)(3) 39,158. GENERAL SUPPORT 91-2144336 501(C)(3) 21,400. GENERAL SUPPORT 95-4785834 501(C)(3) 22,600. GENERAL SUPPORT 95-3775859 501(C)(3) 7,400. GENERAL SUPPORT 95-3881333 501(C)(3) 30,400. GENERAL SUPPORT 01-0780689 501(C)(3) 27,550. GENERAL SUPPORT 04-3262046 501(C)(3) 14,800. GENERAL SUPPORT 26-1856754 501(C)(3) (2) 24TH STREET THEATRE 1117 W. 24TH ST., LOS ANGELES, CA 90007 (3) COMMUNITY PARTNERS 1000 N. ALAMEDA ST., LOS ANGELES, CA 90012 (4) COMMUNITY SERVICES UNLIMITED PO BOX 62696, LOS ANGELES, CA 90062 (5) PROYECTO PASTORAL 135 N MISSION RD, LOS ANGELES, CA 90033 (6) REDEEMER COMMUNITY PARTNERSHIP 1438 W JEFFERSON BLVD LOS ANGELES, CA 90007 (7) THE JESTER & PHARLEY PHUND PO BOX 817, PALOS VERDES ESTATES, CA 90274 (8) UNITED UNIVERSITY CHURCH 817 W. 34TH ST., LOS ANGELES, CA 90089 (9) CLINICA MSR. OSCAR A. ROMERO 123 S. ALVARADO ST., LOS ANGELES, CA 90057 (10) HOLLENBECK POLICE ACTIVITIES LEAGUE 126 N. ST. LOUIS ST., LOS ANGELES, CA 90033 (11) JUMPSTART FOR YOUNG CHILDREN INC. 1625 W. OLYMPIC BLVD, LOS ANGELES, CA 90015 (12) FRANCISCO HOMES P.O. BOX 7190 LOS ANGELES, CA 90007 2 3 mmmmmmmmmmmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m II 7,300. GENERAL SUPPORT Enter total number of section 501(c)(3) and government organizations listed in the line 1 table Enter total number of other organizations listed in the line 1 table For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1288 1.000 79590J 7377 V 17-7.10 Schedule I (Form 990) (2017) PUBLIC DISCLOSURE COPY (Form 990) Department of the Treasury Internal Revenue Service I I Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA General Information on Grants and Assistance Part I 2 À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 21 or 22. Attach to Form 990. Go to www.irs.gov/Form990 for the latest information. Name of the organization 1 OMB No. 1545-0047 Grants and Other Assistance to Organizations, Governments, and Individuals in the United States SCHEDULE I 95-1642394 Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees’ eligibility for the grants or assistance, and X Yes the selection criteria used to award the grants or assistance? Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Part II No Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" on Form 990, Part IV, line 21, for any recipient that received more than $5,000. Part II can be duplicated if additional space is needed. 1 (a) Name and address of organization or government (b) EIN (c) IRC section (if applicable) (d) Amount of cash grant (e) Amount of noncash assistance (f) Method of valuation (book, FMV, appraisal, other) (g) Description of noncash assistance (h) Purpose of grant or assistance (1) LIVING ADVANTAGE, INC. 2734 RAYMOND AVE. LOS ANGELES, CA 90007 95-4447561 501(C)(3) 31,300. GENERAL SUPPORT 27-3388731 501(C)(3) 21,000. GENERAL SUPPORT 13-3408731 501(C)(3) 12,200. GENERAL SUPPORT 51-0192025 501(C)(3) 23,750. GENERAL SUPPORT 95-4302067 501(C)(3) 23,200. GENERAL SUPPORT 13-1632524 501(C)(3) 10,000. GENERAL SUPPORT 46-3958585 501(C)(3) 43,195. GENERAL SUPPORT (2) LOS ANGELES METROPOLITAN DEBATE LEAGUE 350 S. GRAND AVENUE, 50TH FLOOR (3) NFTE GREATER LOS ANGELES 350 S. BIXEL ST., SUITE 280 (4) PACIFIC ASIAN CONSORTIUM IN EMPLOYMENT 1055 WILSHIRE BLVD.,SUITE 900A (5) TXT : TEENS EXPLORING TECHNOLOGY 3655 S. GRAND AVE # 220 (6) AMERICAN LUNG ASSOCIATION 55 W. WACKER DRIVE CHICAGO, IL 60601 (7) GLENDALE FIRE FOUNDATION 372 WEST ARDEN AVENUE GLENDALE, CA 91203 (8) (9) (10) (11) (12) 2 3 mmmmmmmmmmmmmmmmmmmmmmmmmmmmm m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m II Enter total number of section 501(c)(3) and government organizations listed in the line 1 table Enter total number of other organizations listed in the line 1 table For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1288 1.000 79590J 7377 V 17-7.10 19. Schedule I (Form 990) (2017) PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule I (Form 990) (2017) Part III Page 2 Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" on Form 990, Part IV, line 22. Part III can be duplicated if additional space is needed. (a) Type of grant or assistance 1 STUDENT FINANCIAL AID (b) Number of recipients 23,233. (c) Amount of cash grant (d) Amount of non-cash assistance 556,120,550. (e) Method of valuation (book, (f) Description of non-cash assistance FMV, appraisal, other) N/A N/A 2 3 4 5 6 7 Supplemental Information. Provide the information required in Part I, line 2, Part III, column (b); and any other additional information. SCHEDULE I Part IV PART I, LINE 2 USC NEIGHBORHOOD OUTREACH FUNDS ARE DISTRIBUTED THROUGH A COMPETITIVE GRANT MAKING PROCESS. A GRANT REVIEW COMMITTEE COMPRISED OF UNIVERSITY FACULTY, AND STAFF VOLUNTEERS REVIEWS ALL GRANTS, AND PROVIDES FUNDING RECOMMENDATIONS BASED ON A SET OF CRITERIA. ALL FINAL GRANT AWARD DECISIONS ARE MADE BY CIVIC ENGAGEMENT. USC NEIGHBORHOOD OUTREACH MONITORS THE GRANT AWARDS THROUGH AN INTERIM REPORT SIX MONTHS INTO THE PROJECT, AND A FINAL CUMULATIVE REPORT AT THE END OF THE PROJECT. WE CONDUCT AD HOC SITE VISITS TO OBSERVE THE PROGRAM AND REVIEW EDUCATION Schedule I (Form 990) (2017) JSA 7E1504 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule I (Form 990) (2017) Part III Page 2 Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" on Form 990, Part IV, line 22. Part III can be duplicated if additional space is needed. (a) Type of grant or assistance (b) Number of recipients (c) Amount of cash grant (d) Amount of non-cash assistance (e) Method of valuation (book, (f) Description of non-cash assistance FMV, appraisal, other) 1 2 3 4 5 6 7 Supplemental Information. Provide the information required in Part I, line 2, Part III, column (b); and any other additional information. CONSORTIUM OF CENTRAL LA (ECCLA) ACCOUNTING RECORDS. Part IV THE UNIVERSITY OF SOUTHERN CALIFORNIA ADMINISTERS ONE OF THE NATION'S LARGEST FINANCIAL AID PROGRAMS THROUGH ITS FINANCIAL AID OFFICE, AWARDING $556 MILLION IN AID TO OVER TWO-THIRDS OF OUR UNDERGRADUATE STUDENTS. WE WILL MEET THE FULL USC-DETERMINED FINANCIAL NEED OF ALL ADMITTED UNDERGRADUATE STUDENTS WHO MEET ALL FEDERAL, STATE, AND UNIVERSITY ELIGIBILITY REQUIREMENTS AND DEADLINES. STUDENTS AND THEIR PARENTS ARE REQUIRED TO SUBMIT ALL APPLICATIONS AND SUPPORT DOCUMENTS, MEETING ALL DEADLINES, IN ORDER TO MAKE THEIR CLAIM FOR FINANCIAL ASSISTANCE AND TO Schedule I (Form 990) (2017) JSA 7E1504 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule I (Form 990) (2017) Part III Page 2 Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" on Form 990, Part IV, line 22. Part III can be duplicated if additional space is needed. (a) Type of grant or assistance (b) Number of recipients (c) Amount of cash grant (d) Amount of non-cash assistance (e) Method of valuation (book, (f) Description of non-cash assistance FMV, appraisal, other) 1 2 3 4 5 6 7 Supplemental Information. Provide the information required in Part I, line 2, Part III, column (b); and any other additional information. BE CONSIDERED FOR FINANCIAL AID. Part IV PART II THE UNIVERSITY OF SOUTHERN CALIFORNIA ALSO ADMINISTERS SUB-AWARDS FOR RESEARCH TO OTHER ORGANIZATIONS IN CONNECTION WITH RESEARCH GRANTS AWARDED TO THE UNIVERSITY. THE UNIVERSITY OF SOUTHERN CALIFORNIA DOES NOT REPORT THESE SUB-AWARDS AS GRANTS ON FORM 990, SCHEDULE I SINCE THE RECIPIENT ORGANIZATIONS PERFORM RESEARCH SERVICES FOR THE UNIVERSITY. Schedule I (Form 990) (2017) JSA 7E1504 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule I (Form 990) (2017) Part III Page 2 Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" on Form 990, Part IV, line 22. Part III can be duplicated if additional space is needed. (a) Type of grant or assistance (b) Number of recipients (c) Amount of cash grant (d) Amount of non-cash assistance (e) Method of valuation (book, (f) Description of non-cash assistance FMV, appraisal, other) 1 2 3 4 5 6 7 Supplemental Information. Provide the information required in Part I, line 2, Part III, column (b); and any other additional information. PART III, COLUMN(C) Part IV THE CASH GRANT IS REFLECTED ON STUDENT ACCOUNTS. Schedule I (Form 990) (2017) JSA 7E1504 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY OMB No. 1545-0047 Compensation Information SCHEDULE J (Form 990) Department of the Treasury Internal Revenue Service Name of the organization À¾µ» For certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees Complete if the organization answered "Yes" on Form 990, Part IV, line 23. Attach to Form 990. Go to www.irs.gov/Form990 for instructions and the latest information. I I I Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA Part I Questions Regarding Compensation 95-1642394 Yes No 1a Check the appropriate box(es) if the organization provided any of the following to or for a person listed on Form 990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items. X First-class or charter travel X Travel for companions Tax indemnification and gross-up payments Discretionary spending account X X X Housing allowance or residence for personal use Payments for business use of personal residence Health or social club dues or initiation fees Personal services (such as, maid, chauffeur, chef) b If any of the boxes on line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If "No," complete Part III to explain 2 Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all directors, trustees, and officers, including the CEO/Executive Director, regarding the items checked on line 1a? mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm X Compensation committee X Independent compensation consultant X Form 990 of other organizations X X During the year, did any person listed on Form 990, Part VII, Section A, line 1a, with respect to the filing organization or a related organization: a Receive a severance payment or change-of-control payment? b Participate in, or receive payment from, a supplemental nonqualified retirement plan? c Participate in, or receive payment from, an equity-based compensation arrangement? If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III. 5 a b 6 a b 8 9 X 4a 4b 4c X X W ritten employment contract Compensation survey or study Approval by the board or compensation committee mmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmm mmmmmmmmmmmmmmm 7 2 Indicate which, if any, of the following the filing organization used to establish the compensation of the organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III. 3 4 X 1b Only section 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9. For persons listed on Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the revenues of: The organization? Any related organization? If "Yes" on line 5a or 5b, describe in Part III. For persons listed on Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the net earnings of: The organization? Any related organization? If "Yes" on line 6a or 6b, describe in Part III. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 5a 5b X X mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 6a 6b X X For persons listed on Form 990, Part VII, Section A, line 1a, did the organization provide any nonfixed payments not described on lines 5 and 6? If "Yes," describe in Part III Were any amounts reported on Form 990, Part VII, paid or accrued pursuant to a contract that was subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe in Part III If "Yes" on line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? mmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1290 1.000 79590J 7377 X V 17-7.10 7 X 8 X 9 X Schedule J (Form 990) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule J (Form 990) 2017 Part II Page 2 Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed. For each individual whose compensation must be reported on Schedule J, report compensation from the organization on row (i) and from related organizations, described in the instructions, on row (ii). Do not list any individuals that aren't listed on Form 990, Part VII. Note: The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual. (B) Breakdown of W-2 and/or 1099-MISC compensation (A) Name and Title (i) Base compensation CHRYSOSTOMOS L. NIKIAS (i) PRESIDENT/TRUSTEE (ii) 1 MICHAEL QUICK (i) PROVOST/SR VP ACADEMIC AFFAIRS (ii) 2 TODD R. DICKEY (i) SR VP, ADMINISTRATION (ii) 3 JAMES M. STATEN (i) SR VP, FINANCE & CFO (ii) 4 ALBERT R. CHECCIO (i) SR VP, UNIVERSITY ADVANCEMENT (ii) 5 THOMAS S. SAYLES (i) SR VP, UNIV RELATIONS (ii) 6 THOMAS E. JACKIEWICZ (i) SVP & CEO FOR KECK MEDICINE (ii) 7 CAROL MAUCH AMIR (i) SVP & GEN COUNSEL/SECRETARY (ii) 8 JAMES G. ELLIS (i) DEAN-MARSHALL SCHOOL OF BUS. (ii) 9 LISA ANN MAZZOCCO (i) CHIEF INVESTMENT OFFICER (ii) 10 AMBER MILLER (i) SEE SCHEDULE O FOR TITLE (ii) 11 LAURA MOSQUEDA (i) SEE SCHEDULE O FOR TITLE (ii) 12 ROHIT VARMA, MD (i) SEE SCHEDULE O FOR TITLE (ii) 13 YANNIS C. YORTSOS (i) DEAN-VITERBI SCHOOL OF ENG. (ii) 14 CHARLES HELTON (i) HEAD FOOTBALL COACH (ii) 15 VAUGHN A. STARNES, MD (i) CHAIR & DIST PROF SURGERY (ii) 16 (ii) Bonus & incentive compensation 1,467,330. 0. 682,471. 0. 642,740. 0. 1,322,160. 0. 569,097. 0. 391,245. 0. 1,503,947. 0. 572,776. 0. 547,895. 0. 658,895. 0. 469,828. 0. 450,546. 0. 1,160,529. 0. 397,830. 0. 2,358,120. 0. 2,525,919. 0. 0. 0. 100,000. 0. 100,000. 0. 200,000. 0. 300,000. 0. 100,000. 0. 450,000. 0. 100,000. 0. 70,000. 0. 337,657. 0. 45,000. 0. 50,000. 0. 125,000. 0. 100,000. 0. 450,500. 0. 0. 0. (iii) Other reportable compensation 239,612. 0. 135,327. 0. 91,236. 0. 277,872. 0. 209,261. 0. 42,157. 0. 368,948. 0. 81,386. 0. 35,825. 0. 109,408. 0. 68,028. 0. 23,806. 0. 137,728. 0. 24,050. 0. 302,865. 0. 247,250. 0. (C) Retirement and other deferred compensation 697,270. 0. 27,000. 0. 27,000. 0. 127,000. 0. 277,000. 0. 27,000. 0. 27,000. 0. 27,000. 0. 27,000. 0. 97,400. 0. 27,000. 0. 27,000. 0. 27,000. 0. 27,000. 0. 27,000. 0. 27,000. 0. (D) Nontaxable benefits 159,746. 0. 10,655. 0. 12,646. 0. 30,605. 0. 16,138. 0. 11,816. 0. 15,215. 0. 32,411. 0. 20,703. 0. 26,398. 0. 33,354. 0. 13,308. 0. 21,210. 0. 29,917. 0. 80,450. 0. 31,999. 0. (E) Total of columns (B)(i)-(D) 2,563,958. 0. 955,453. 0. 873,622. 0. 1,957,637. 0. 1,371,496. 0. 572,218. 0. 2,365,110. 0. 813,573. 0. 701,423. 0. 1,229,758. 0. 643,210. 0. 564,660. 0. 1,471,467. 0. 578,797. 0. 3,218,935. 0. 2,832,168. 0. (F) Compensation in column (B) reported as deferred on prior Form 990 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 242,400. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. Schedule J (Form 990) 2017 JSA 7E1291 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule J (Form 990) 2017 Part II Page 2 Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed. For each individual whose compensation must be reported on Schedule J, report compensation from the organization on row (i) and from related organizations, described in the instructions, on row (ii). Do not list any individuals that aren't listed on Form 990, Part VII. Note: The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual. (B) Breakdown of W-2 and/or 1099-MISC compensation (A) Name and Title (i) Base compensation ANDY ENFIELD (i) HEAD BASKETBALL COACH (ii) 1 INDERBIR SINGH GILL, MD (i) PROF & CHAIR - UROLOGY (ii) 2 LOUIS A. VANDERMOLEN MD (i) PROFESSOR OF CLINICAL MEDICINE (ii) 3 DANI BYRD (i) SEE SCHEDULE O FOR TITLE (ii) 4 STEVE A. KAY (i) SEE SCHEDULE O FOR TITLE (ii) 5 CARMEN A. PULIAFITO, MD (i) 6 SEE SCHEDULE O FOR TITLE (ii) 7 (ii) 8 (ii) 9 (ii) 10 (ii) 11 (ii) 12 (ii) 13 (ii) 14 (ii) 15 (ii) 16 (ii) (ii) Bonus & incentive compensation 2,394,517. 0. 2,147,566. 0. 1,992,508. 0. 329,441. 0. 678,814. 0. 623,831. 0. 75,000. 0. 0. 0. 0. 0. 0. 0. 0. 0. 124,000. 0. (iii) Other reportable compensation 262,841. 0. 446,455. 0. 173,336. 0. 26,922. 0. 98,680. 0. 1,081,215. 0. (C) Retirement and other deferred compensation 27,000. 0. 27,000. 0. 27,000. 0. 27,000. 0. 27,000. 0. 27,000. 0. (D) Nontaxable benefits 29,790. 0. 86,943. 0. 21,286. 0. 81,528. 0. 55,633. 0. 20,094. 0. (E) Total of columns (B)(i)-(D) 2,789,148. 0. 2,707,964. 0. 2,214,130. 0. 464,891. 0. 860,127. 0. 1,876,140. 0. (F) Compensation in column (B) reported as deferred on prior Form 990 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. (i) (i) (i) (i) (i) (i) (i) (i) (i) (i) Schedule J (Form 990) 2017 JSA 7E1291 1.000 79590J 7377 V 17-7.10 UNIVERSITY OF SOUTHERN CALIFORNIA PUBLIC DISCLOSURE COPY Schedule J (Form 990) 2017 95-1642394 Page 3 Part III Supplemental Information Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. SCHEDULE J, PART I, LINE 1A AND LINE 1B: FIRST-CLASS TRAVEL: THE UNIVERSITY OF SOUTHERN CALIFORNIA REQUIRES THAT ECONOMY-CLASS (COACH) TRAVEL BE UTILIZED FOR UNIVERSITY BUSINESS. FIRST AND BUSINESS CLASS AIR TRAVEL IS ONLY ALLOWED WHEN THERE IS ADVANCE WRITTEN APPROVAL, WHEN IT IS NECESSARY FOR MEDICAL REASONS, OR WHEN COACH CLASS IS UNAVAILABLE. THERE IS NO VALUE INCLUDED IN THE INDIVIDUAL'S FORM W-2 AS TAXABLE INCOME AS ONLY BUSINESS TRAVEL EXPENSES ARE PAID. THE INDIVIDUALS LISTED IN FORM 990, PART VII WHO FLEW FIRST CLASS DURING CALENDAR YEAR 2017 INCLUDED FIVE OFFICERS, FIVE KEY EMPLOYEES, THREE HIGHEST COMPENSATED EMPLOYEES AND ONE FORMER KEY EMPLOYEE. CHARTER TRAVEL: THE UNIVERSITY OF SOUTHERN CALIFORNIA UTILIZES CHARTER TRAVEL ON OCCASION FOR ATHLETIC TEAM EVENTS AND OTHER UNIVERSITY BUSINESS FOR CERTAIN INDIVIDUALS AS PART OF THEIR OFFICIAL RESPONSIBILITIES TO THE UNIVERSITY OF SOUTHERN CALIFORNIA. THERE IS NO VALUE INCLUDED IN THE INDIVIDUAL'S FORM W-2 AS TAXABLE INCOME AS ONLY BUSINESS TRAVEL EXPENSES ARE PAID. Schedule J (Form 990) 2017 JSA 7E1505 1.000 79590J 7377 V 17-7.10 UNIVERSITY OF SOUTHERN CALIFORNIA PUBLIC DISCLOSURE COPY Schedule J (Form 990) 2017 95-1642394 Page 3 Part III Supplemental Information Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. THE INDIVIDUALS LISTED IN FORM 990, PART VII WHO UTILIZED CHARTER TRAVEL DURING CALENDAR YEAR 2017 INCLUDED TWO OFFICERS, FOUR TRUSTEES, AND ONE HIGHEST COMPENSATED EMPLOYEE. TRAVEL FOR COMPANIONS: THE UNIVERSITY OF SOUTHERN CALIFORNIA PAYS FOR COMPANION TRAVEL WHEN THERE IS A BUSINESS PURPOSE. THE AMOUNT IS NOT REPORTED ON THE EMPLOYEE'S FORM W-2 AS TAXABLE INCOME AS ONLY BUSINESS TRAVEL EXPENSES ARE PAID. TO THE EXTENT THERE IS NO BUSINESS PURPOSE, THE EMPLOYEES ARE REQUIRED TO REIMBURSE THE UNIVERSITY FOR COMPANION TRAVEL OR THE VALUE OF THE COMPANION TRAVEL WILL BE INCLUDED AS TAXABLE COMPENSATION TO THE EMPLOYEE. THE INDIVIDUALS LISTED IN FORM 990, PART VII WHO WERE PROVIDED WITH COMPANION TRAVEL FOR BUSINESS PURPOSES DURING CALENDAR YEAR 2017 INCLUDED ONE OFFICER, FOUR TRUSTEES, ONE KEY EMPLOYEE AND THREE HIGHEST COMPENSATED EMPLOYEES. Schedule J (Form 990) 2017 JSA 7E1505 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA Schedule J (Form 990) 2017 95-1642394 Page 3 Part III Supplemental Information Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. ONE OFFICER RECEIVED TAXABLE COMPANION TRAVEL FOR NON-BUSINESS PURPOSES DURING CALENDAR YEAR 2017. THE VALUE OF THIS AMOUNT IS INCLUDED IN SCHEDULE J, PART II, COLUMN B(III). RESIDENCE FOR PERSONAL USE: LODGING PROVIDED IN THE PRESIDENT'S HOME (A UNIVERSITY BUILDING) TO THE PRESIDENT IS NOT REPORTED ON FORM W-2 AS TAXABLE INCOME AS THE PRESIDENT IS REQUIRED TO ACCEPT SUCH LODGING AS A CONDITION OF EMPLOYMENT FOR THE CONVENIENCE OF THE UNIVERSITY. THE RENTAL VALUE OF THE PORTION OF THE PRESIDENT'S HOME THAT IS USED FOR PERSONAL PURPOSES IS INCLUDED AS A NONTAXABLE BENEFIT TO THE PRESIDENT AND IS REPORTED ON SCHEDULE J, PART II, COLUMN (D). HEALTH OR SOCIAL CLUB DUES OR INITIATION FEES: PAYMENT TO OR REIMBURSEMENT FOR AN INDIVIDUAL'S MEMBERSHIP IN, OR DUES TO, A PRIVATE CLUB FOR BUSINESS PURPOSES IS MADE AVAILABLE IN CERTAIN EMPLOYMENT CONTRACTS OR IS OTHERWISE APPROVED BY THE APPLICABLE SENIOR Schedule J (Form 990) 2017 JSA 7E1505 1.000 79590J 7377 V 17-7.10 UNIVERSITY OF SOUTHERN CALIFORNIA PUBLIC DISCLOSURE COPY Schedule J (Form 990) 2017 95-1642394 Page 3 Part III Supplemental Information Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. VICE PRESIDENT OR THE PRESIDENT. THE VALUE OF MEMBERSHIPS PROVIDED FOR BUSINESS PURPOSES IS NOT INCLUDED IN AN INDIVIDUAL'S FORM W-2 AS TAXABLE INCOME. ANY PERSONAL USE OF THESE MEMBERSHIPS IS PAID FOR BY THE INDIVIDUAL. THE INDIVIDUALS LISTED IN FORM 990, PART VII WHO WERE PROVIDED WITH MEMBERSHIP IN, OR DUES TO, A PRIVATE CLUB DURING CALENDAR YEAR 2017 INCLUDED EIGHT OFFICERS, THREE KEY EMPLOYEES, ONE HIGHEST COMPENSATED EMPLOYEE, AND TWO FORMER KEY EMPLOYEES. PERSONAL SERVICES: CERTAIN INDIVIDUALS RECEIVED PERSONAL SERVICES, INCLUDING FINANCIAL PLANNING. SUCH SERVICES ARE MADE AVAILABLE IN EMPLOYMENT CONTRACTS AND THE VALUE OF THE SERVICES, IF USED, WAS INCLUDED IN THE INDIVIDUAL'S FORM W-2 AS TAXABLE INCOME AND IS REPORTED ON SCHEDULE J, PART II, COLUMN (B)(III). THE LISTED INDIVIDUALS WHO RECEIVED SUCH BENEFIT DURING CALENDAR YEAR Schedule J (Form 990) 2017 JSA 7E1505 1.000 79590J 7377 V 17-7.10 UNIVERSITY OF SOUTHERN CALIFORNIA PUBLIC DISCLOSURE COPY Schedule J (Form 990) 2017 95-1642394 Page 3 Part III Supplemental Information Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. 2017 INCLUDED SIX OFFICERS AND ONE HIGHEST COMPENSATED EMPLOYEE. ONE OFFICER RECEIVED THE SERVICES OF A CAR AND DRIVER. SUCH SERVICES WERE APPROVED AS PART OF HIS EMPLOYMENT CONTRACT, AND THE VALUE OF TAXABLE SERVICES WAS INCLUDED IN HIS FORM W-2 AS TAXABLE INCOME AND IS REPORTED ON SCHEDULE J, PART II, COLUMN (B)(III). SCHEDULE J, PART I, LINE 4A: CARMEN PULIAFITO, MD RECEIVED $875,000 IN CONNECTION WITH HIS RESIGNATION OF HIS TENURED FACULTY POSITION AND SEPARATION FROM THE UNIVERSITY. THIS AMOUNT IS INCLUDED IN SCHEDULE J, PART II, COLUMN B(III). SCHEDULE J, PART I, LINE 4B: CHRYSOSTOMOS L. NIKIAS: DURING CALENDAR YEAR 2017, DR. CHRYSOSTOMOS L. NIKIAS PARTICIPATED IN TWO "DEFINED CONTRIBUTION" NON-QUALIFIED RETIREMENT PLANS, BOTH OF WHICH WERE SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. UNDER THE FIRST PLAN, AN AMOUNT EQUAL TO 25% OF DR. NIKIAS' BASE SALARY WAS CREDITED BY THE UNIVERSITY TO THE PLAN. UNDER THE SECOND PLAN, AN AMOUNT EQUAL TO Schedule J (Form 990) 2017 JSA 7E1505 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA Schedule J (Form 990) 2017 95-1642394 Page 3 Part III Supplemental Information Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. $200,000 WAS CREDITED BY THE UNIVERSITY. BOTH OF THESE AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (C). LISA ANN MAZZOCCO: THE CHIEF INVESTMENT OFFICER IS ELIGIBLE TO RECEIVE AN ANNUAL AWARD BASED ON A PERCENTAGE OF A PREDESIGNATED TARGET PERFORMANCE. FIFTY PERCENT OF EACH ANNUAL INCENTIVE AWARD IS DEFERRED AND PAID AT THE END OF A TWO-YEAR DEFERRAL PERIOD SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. THE PLAN IS REVIEWED ANNUALLY BY THE EXECUTIVE COMMITTEE. AN ACCRUAL OF $70,400 HAS BEEN INCLUDED AS DEFERRED COMPENSATION IN SCHEDULE J, PART II, COLUMN (C) FOR CALENDAR YEAR 2017. ALBERT R. CHECCIO: DURING CALENDAR YEAR 2017, THE SR VP/UNIVERSITY ADVANCEMENT PARTICIPATED IN TWO SUCCESSIVE RETENTION PROGRAMS. A PAYMENT IN THE TOTAL AMOUNT OF $1,000,000 (ACCRUED AT $250,000 PER YEAR) IS SCHEDULED TO VEST AND BE PAYABLE ON JUNE 30, 2018. THIS PLAN IS SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE, CONTINGENT UPON CONTINUED EMPLOYMENT AND PERFORMANCE METRICS. Schedule J (Form 990) 2017 JSA 7E1505 1.000 79590J 7377 V 17-7.10 UNIVERSITY OF SOUTHERN CALIFORNIA PUBLIC DISCLOSURE COPY Schedule J (Form 990) 2017 95-1642394 Page 3 Part III Supplemental Information Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. A PAYMENT OF $500,000 (ACCRUING AT $250,000 PER YEAR) IS SCHEDULED TO VEST AND BE PAYABLE ON JUNE 30, 2020. THIS PLAN IS SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE, CONTINGENT UPON CONTINUED EMPLOYMENT AND PERFORMANCE METRICS. AN ACCRUAL OF $250,000, IN CONNECTION WITH THE FIRST RETENTION PROGRAM, HAS BEEN INCLUDED IN SCHEDULE J, PART II, COLUMN (C). JAMES M. STATEN: DURING CALENDAR YEAR 2017, SR VP FINANCE/CFO, PARTICIPATED IN A RETENTION PROGRAM. A PAYMENT OF $500,000 (ACCRUING AT $100,000 PER YEAR) IS SCHEDULED TO VEST AND BE PAYABLE IN 2021 SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. AN ACCRUAL OF $100,000 HAS BEEN INCLUDED IN SCHEDULE J, PART II, COLUMN (C). OTHER: IN 1994 USC CREATED A 457(F) SUPPLEMENTAL RETIREMENT PLAN TO PROVIDE MAKE-UP BENEFITS TO EMPLOYEES WHOSE COMPENSATION EXCEEDS THE EARNINGS LIMITATION FOR CONTRIBUTIONS TO THE USC DEFINED CONTRIBUTION RETIREMENT PLAN. AS OF JANUARY 1, 2005, THE PLAN WAS FROZEN AND PARTICIPANTS, WITH Schedule J (Form 990) 2017 JSA 7E1505 1.000 79590J 7377 V 17-7.10 UNIVERSITY OF SOUTHERN CALIFORNIA PUBLIC DISCLOSURE COPY Schedule J (Form 990) 2017 95-1642394 Page 3 Part III Supplemental Information Provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. RESPECT TO FUTURE MAKE-UP BENEFITS, WERE NO LONGER PERMITTED TO DEFER THESE BENEFITS. SCHEDULE J, PART I, LINE 7: CERTAIN INDIVIDUALS LISTED IN SCHEDULE J, PART II RECEIVED A MERIT BASED BONUS AND THE AMOUNT OF SUCH BONUSES ARE SHOWN ON SCHEDULE J, PART II, COLUMN (B)(II). SEE ALSO LINE 4(B) DISCLOSURE FOR LISA ANN MAZZOCCO. SCHEDULE J, PART I, LINE 8 THE KECK SCHOOL OF MEDICINE DEAN IS SERVING UNDER HER INITIAL CONTRACT WITH THE UNIVERSITY. Schedule J (Form 990) 2017 JSA 7E1505 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY TAX-EXEMPT BOND ISSUE SET 1 SCHEDULE K (Form 990) I À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 24a. Provide descriptions, explanations, and any additional information in Part VI. Attach to Form 990. Go to www.irs.gov/Form990 for instructions and the latest information. I I Department of the Treasury Internal Revenue Service OMB No. 1545-0047 Supplemental Information on Tax-Exempt Bonds Name of the organization Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA Part I Bond Issues (a) Issuer name 95-1642394 (b) Issuer EIN (c) CUSIP # (d) Date issued (e) Issue price (f) Description of purpose (g) Defeased Yes No (h) On behalf of issuer Yes No (i) Pooled financing Yes No A CEFA - SERIES 2009C 52-1705592 130178TF3 07/09/2009 91,457,316. REFINANCING SERIES 1998A AND 1999 X X X B CEFA - SERIES 2012A 52-1705592 130178R81 08/29/2012 52,904,681. REFINANCING SERIES 2003A&C X X X C CEFA - SERIES 2015A 52-1705592 1301786D3 07/07/2015 53,127,773. REFINANCING SERIES 2005A X X X D Part II Proceeds mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmm mmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm 1 2 3 4 5 6 7 8 9 10 11 12 13 Amount of bonds retired Amount of bonds legally defeased Total proceeds of issue Gross proceeds in reserve funds Capitalized interest from proceeds Proceeds in refunding escrows Issuance costs from proceeds Credit enhancement from proceeds Working capital expenditures from proceeds Capital expenditures from proceeds Other spent proceeds Other unspent proceeds Year of substantial completion 14 15 16 17 Were the bonds issued as part of a current refunding issue? Were the bonds issued as part of an advance refunding issue? Has the final allocation of proceeds been made? Does the organization maintain adequate books and records to support the final allocation of proceeds? Part III A B C D 5,491,390. 5,908,043. 2,935,535. 91,457,316. 52,904,681. 53,127,773. 734,160. 574,965. 496,785. 90,723,156. 52,392,716. 52,630,988. Yes No Yes X X No Yes X X X X X X X X X No Yes No X Private Business Use A 1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? 2 Are there any lease arrangements that may result in private business use of bond-financed property? mmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1295 1.000 79590J 7377 V 17-7.10 Yes B No Yes C No Yes D No X X X X Yes No Schedule K (Form 990) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule K (Form 990) 2017 Part III Page Private Business Use (Continued) 2 TAX-EXEMPT BOND ISSUE SET 1 A 3 a Are there any management or service contracts that may result in private business use of bond-financed property? mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mm mmmmmmI mmmmmmmm m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m mIm mmmmmmmmmmmmmm mmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Yes B No Yes C No Yes X X D No Yes No b If "Yes" to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? X c Are there any research agreements that may result in private business use of bond-financed property? X X d If "Yes" to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? X X 4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government 5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government Total of lines 4 and 5 Does the bond issue meet the private security or payment test? 6 7 % % % .1000 % % % % .1000 % X .0200 % .0200 % X % % X X 8 a Has there been a sale or disposition of any of the bond-financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued? b If "Yes" to line 8a, enter the percentage of bond-financed property sold or disposed of % c If "Yes" to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? 9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2? mmmmmmmmmmmmm Part IV % X 2 a b c 3 4a b c d e % X Arbitrage A 1 % Has the issuer filed Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate? If "No" to line 1, did the following apply? Rebate not due yet? Exception to rebate? No rebate due? If “Yes” to line 2c, provide in Part VI the date the rebate computation was performed Is the bond issue a variable rate issue? Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue? Name of provider Term of hedge Was the hedge superintegrated? Was the hedge terminated? mmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm B No Yes C No X X X X X X X X Yes D No Yes No X X X X X X X X X X Schedule K (Form 990) 2017 JSA 7E1296 1.000 79590J 7377 Yes V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule K (Form 990) 2017 Part IV Page A 5a b c d 6 7 3 Arbitrage (Continued) mmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmm mmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Procedures To Undertake Corrective Action Yes B No Were gross proceeds invested in a guaranteed investment contract (GIC)? Name of provider Term of GIC Yes C No Yes D No X X X X X X Yes No Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? Were any gross proceeds invested beyond an available temporary period? Has the organization established written procedures to monitor requirements of section 148? Part V the X X A Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation isn't available under applicable regulations? Yes X B No Yes C No Yes D No Yes No mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Part VI X X X Supplemental Information. Provide additional information for responses to questions on Schedule K. See instructions Schedule K (Form 990) 2017 JSA 7E1328 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA Schedule K (Form 990) 2017 Part VI 95-1642394 Supplemental Information. Provide additional information for responses to questions on Schedule K (see instructions) (Continued) Page 4 PART IV, LINE 2(C) FOR CEFA-SERIES 2012A, NO FURTHER CALCULATIONS ARE NECESSARY AS ALL EARNINGS HAVE BEEN SPENT. JSA 7E1511 1.000 Schedule K (Form 990) 2017 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY SCHEDULE L (Form 990 or 990-EZ) I Department of the Treasury Internal Revenue Service OMB No. 1545-0047 Transactions With Interested Persons À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 25a, 25b, 26, 27, 28a, 28b, or 28c, or Form 990-EZ, Part V, line 38a or 40b. Attach to Form 990 or Form 990-EZ. Go to www.irs.gov/Form990 for instructions and the latest information. I Name of the organization I Open To Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Part I Excess Benefit Transactions (section 501(c)(3), section 501(c)(4), and 501(c)(29) organizations only). Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b. (a) Name of disqualified person 1 (b) Relationship between disqualified person and organization (d) (c) Description of transaction Corrected? Yes No (1) (2) (3) (4) (5) (6) Enter the amount of tax incurred by the organization managers or disqualified persons during the year under section 4958 Enter the amount of tax, if any, on line 2, above, reimbursed by the organization 2 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmI mmmmmmmmmmmmmmmI 3 Part II Loans to and/or From Interested Persons. Complete if the organization answered "Yes" on Form 990-EZ, Part V, line 38a or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22. (a) Name of interested person (b) Relationship with organization (c) Purpose of loan (d) Loan to or from the organization? To (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) THOMAS JACKIEWICZ EMPLOYEE HOUSING LOAN THOMAS JACKIEWICZ EMPLOYEE HOUSING LOAN STEVE KAY EMPLOYEE HOUSING LOAN STEVE KAY EMPLOYEE HOUSING LOAN AMBER MILLER EMPLOYEE HOUSING LOAN AMBER MILLER EMPLOYEE HOUSING LOAN CARMEN PULIAFITO, MD EMPLOYEE HOUSING LOAN MICHAEL QUICK EMPLOYEE HOUSING LOAN JAMES STATEN EMPLOYEE HOUSING LOAN (e) Original principal amount Part III EMPLOYEE HOUSING LOAN (f) Balance due From X X X X X X X X X X (g) In default? (h) Approved (i) Written by board or agreement? committee? Yes 700,000. 800,000. 500,000. 500,000. 500,000. 500,000. 800,000. 450,000. 1,000,000. 1,000,000. m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m mI JAMES STATEN Total $ $ 280,000. 724,193. 450,000. 481,473. 450,000. 477,209. 570,435. 90,000. 1,000,000. 800,000. $ 22,823,310. No Yes X X X X X X X X X X X X X X X X X X X X No Yes No X X X X X X X X X X Grants or Assistance Benefiting Interested Persons. Complete if the organization answered "Yes" on Form 990, Part IV, line 27. (a) Name of interested person (b) Relationship between interested (c) Amount of assistance person and the organization (d) Type of assistance (e) Purpose of assistance (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. JSA 7E1297 1.000 79590J 7377 V 17-7.10 Schedule L (Form 990 or 990-EZ) 2017 PUBLIC DISCLOSURE COPY SCHEDULE L (Form 990 or 990-EZ) I Department of the Treasury Internal Revenue Service OMB No. 1545-0047 Transactions With Interested Persons À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 25a, 25b, 26, 27, 28a, 28b, or 28c, or Form 990-EZ, Part V, line 38a or 40b. Attach to Form 990 or Form 990-EZ. Go to www.irs.gov/Form990 for instructions and the latest information. I Name of the organization I Open To Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Part I Excess Benefit Transactions (section 501(c)(3), section 501(c)(4), and 501(c)(29) organizations only). Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b. (a) Name of disqualified person 1 (b) Relationship between disqualified person and organization (d) (c) Description of transaction Corrected? Yes No (1) (2) (3) (4) (5) (6) 2 3 Enter the amount of tax incurred by the organization managers or disqualified persons during the year under section 4958 Enter the amount of tax, if any, on line 2, above, reimbursed by the organization mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmI mmmmmmmmmmmmmmmI Part II Loans to and/or From Interested Persons. Complete if the organization answered "Yes" on Form 990-EZ, Part V, line 38a or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22. (a) Name of interested person (b) Relationship with organization (c) Purpose of loan (d) Loan to or from the organization? To (1) TGM INVESTMENTS, LLC (2) (3) (4) (5) (6) (7) (8) (9) (10) Total $ $ TRUSTEE TRUSTEE LOAN X (e) Original principal amount (f) Balance due From (g) In default? (h) Approved (i) Written by board or agreement? committee? Yes 17,500,000. 17,500,000. No X Yes No Yes X X No m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m mI Part III $ Grants or Assistance Benefiting Interested Persons. Complete if the organization answered "Yes" on Form 990, Part IV, line 27. (a) Name of interested person (b) Relationship between interested (c) Amount of assistance person and the organization (d) Type of assistance (e) Purpose of assistance (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. JSA 7E1297 1.000 79590J 7377 V 17-7.10 Schedule L (Form 990 or 990-EZ) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule L (Form 990 or 990-EZ) 2017 Part IV Page 2 Business Transactions Involving Interested Persons. Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c. (a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of transaction (d) Description of transaction (e) Sharing of organization's revenues? Yes (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) No CHRISTOPHER B. ALLEN SON-IN-LAW OF TRUSTEE 157,870. USC EMPLOYEE X ADLEY CHAN SON OF TRUSTEE 106,814. USC EMPLOYEE X DIANA MEKEL SISTER-IN-LAW OF OFFICER 66,957. USC EMPLOYEE X NIKI C NIKIAS SPOUSE OF OFFICER 154,163. USC EMPLOYEE X CAROL PEDEN, MD SPOUSE OF OFFICER 268,384. USC EMPLOYEE X JANET PINE, MD SPOUSE OF KEY EMPLOYEE 150,400. USC EMPLOYEE X QUINN GROUP, INC. TRUSTEE IS OWNER 137,090. EQUIPMENT PURCHASE AND SERVICE X Part V Supplemental Information Provide additional information for responses to questions on Schedule L (see instructions). JSA 7E1507 1.000 Schedule L (Form 990 or 990-EZ) 2017 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY SCHEDULE M (Form 990) Department of the Treasury Internal Revenue Service Name of the organization II I 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 mmmmmmmmmm mmmmmm mmmmmm mmmmmm mmmmmmmmmmmmmmmm mmmmmm mmmmmmmmmm mmmmmmmm mmmmm mmm mmmmmmmmmm mmmmm Open to Public Inspection Employer identification number (a) Check if applicable 95-1642394 (b) Number of contributions or items contributed (c) Noncash contribution amounts reported on Form 990, Part VIII, line 1g Art - Works of art Art - Historical treasures Art - Fractional interests Books and publications Clothing and household goods Cars and other vehicles Boats and planes Intellectual property X 548. 64,573,598. Securities - Publicly traded Securities - Closely held stock Securities - Partnership, LLC, or trust interests Securities - Miscellaneous Qualified conservation contribution - Historic structures Qualified conservation contribution - Other X 3. 324,001. Real estate - Residential Real estate - Commercial Real estate - Other Collectibles Food inventory Drugs and medical supplies Taxidermy Historical artifacts Scientific specimens Archeological artifacts X 27. 1,623,827. Other ( EQUIPMENT ) Other ( ) Other ( ) Other ( ) Number of Forms 8283 received by the organization during the tax year for contributions for which the organization completed Form 8283, Part IV, Donee Acknowledgement I I I I À¾µ» Complete if the organizations answered "Yes" on Form 990, Part IV, lines 29 or 30. Attach to Form 990. Go to www.irs.gov/Form990 for the latest information. UNIVERSITY OF SOUTHERN CALIFORNIA Types of Property Part I 1 2 3 4 5 OMB No. 1545-0047 Noncash Contributions mmmmmmmmmmmmmm mmmmmmmm mmmmmm mmmmm mmmmmmmmm mmmmmmmmmmmmm mmmmmmmmmmm mmmm m m m m mm mm mm mm mm mm mm mm mm mmmmmmmm mmmmmmm mmmmmmmmmm (d) Method of determining noncash contribution amounts HIGH-LOW AVERAGE APPRAISED VALUE FMV 21. 29 Yes No 30a During the year, did the organization receive by contribution any property reported in Part I, lines 1 through 28, that it must hold for at least three years from the date of the initial contribution, and which isn't required to be used for exempt purposes for the entire holding period? b If "Yes," describe the arrangement in Part II. 31 Does the organization have a gift acceptance policy that requires the review of any nonstandard contributions? 32a Does the organization hire or use third parties or related organizations to solicit, process, or sell noncash contributions? b If "Yes," describe in Part II. 33 If the organization didn't report an amount in column (c) for a type of property for which column (a) is checked, describe in Part II. mmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm For Paperwork Reduction Act Notice, see the Instructions for Form 990. 31 X 32a X Schedule M (Form 990) (2017) JSA 7E1298 1.000 79590J 7377 X 30a V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA Schedule M (Form 990) (2017) Part II 95-1642394 Page 2 Supplemental Information. Provide the information required by Part I, lines 30b, 32b, and 33, and whether the organization is reporting in Part I, column (b), the number of contributions, the number of items received, or a combination of both. Also complete this part for any additional information. SCHEDULE M, PART I, COLUMN(B) THE ORGANIZATION IS REPORTING THE NUMBER OF ITEMS RECEIVED. SCHEDULE M, PART I, LINE 32(A) THE UNIVERSITY OF SOUTHERN CALIFORNIA UTILIZES BROKERAGE FIRMS TO SELL NON-CASH CONTRIBUTIONS THAT THE UNIVERSITY RECEIVES AS GIFTS AND THE PROCEEDS ARE REMITTED BACK TO THE UNIVERSITY. Schedule M (Form 990) (2017) JSA 7E1508 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Supplemental Information to Form 990 or 990-EZ SCHEDULE O (Form 990 or 990-EZ) Department of the Treasury Internal Revenue Service Name of the organization I OMB No. 1545-0047 À¾µ» Complete to provide information for responses to specific questions on Form 990 or 990-EZ or to provide any additional information. Attach to Form 990 or 990-EZ. I Information about Schedule O (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990. Open to Public Inspection Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 FORM 990, PART I, LINE 1 AND PART III, LINE 1 THE CENTRAL MISSION OF THE UNIVERSITY OF SOUTHERN CALIFORNIA IS THE DEVELOPMENT OF HUMAN BEINGS AND SOCIETY AS A WHOLE THROUGH THE CULTIVATION AND ENRICHMENT OF THE HUMAN MIND AND SPIRIT. THE PRINCIPAL MEANS BY WHICH OUR MISSION IS ACCOMPLISHED ARE TEACHING, RESEARCH, ARTISTIC CREATION, PROFESSIONAL PRACTICE, AND SELECTED FORMS OF PUBLIC SERVICE. OUR FIRST PRIORITY AS FACULTY AND STAFF IS THE EDUCATION OF OUR STUDENTS, FROM FRESHMEN TO POSTDOCTORALS, THROUGH A BROAD ARRAY OF ACADEMIC, PROFESSIONAL, EXTRACURRICULAR, AND ATHLETIC PROGRAMS OF THE FIRST RANK. THE INTEGRATION OF LIBERAL AND PROFESSIONAL LEARNING IS ONE OF USC'S SPECIAL STRENGTHS. WE STRIVE CONSTANTLY FOR EXCELLENCE IN TEACHING KNOWLEDGE AND SKILLS TO OUR STUDENTS, WHILE AT THE SAME TIME HELPING THEM TO ACQUIRE WISDOM AND INSIGHT, LOVE OF TRUTH AND BEAUTY, MORAL DISCERNMENT, UNDERSTANDING OF SELF, AND RESPECT AND APPRECIATION FOR OTHERS. RESEARCH OF THE HIGHEST QUALITY BY OUR FACULTY AND STUDENTS IS FUNDAMENTAL TO OUR MISSION. USC IS ONE OF A VERY SMALL NUMBER OF PREMIER ACADEMIC INSTITUTIONS IN WHICH RESEARCH AND TEACHING ARE INEXTRICABLY INTERTWINED, AND ON WHICH THE NATION DEPENDS FOR A STEADY STREAM OF NEW KNOWLEDGE, ART, AND TECHNOLOGY. OUR FACULTY ARE NOT SIMPLY TEACHERS OF THE WORKS OF OTHERS, BUT ACTIVE CONTRIBUTORS TO WHAT IS TAUGHT, THOUGHT, For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. JSA 7E1227 7E1227 1.0001.000 79590J 7377 V 17-7.10 Schedule O (Form 990 or 990-EZ) (2017) PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 AND PRACTICED THROUGHOUT THE WORLD. USC IS PLURALISTIC, WELCOMING OUTSTANDING MEN AND WOMEN OF EVERY RACE, CREED, AND BACKGROUND. WE ARE A GLOBAL INSTITUTION IN A GLOBAL CENTER, ATTRACTING MORE INTERNATIONAL STUDENTS OVER THE YEARS THAN ANY OTHER AMERICAN UNIVERSITY. AND WE ARE PRIVATE, UNFETTERED BY POLITICAL CONTROL, STRONGLY COMMITTED TO ACADEMIC FREEDOM, AND PROUD OF OUR ENTREPRENEURIAL HERITAGE. AN EXTRAORDINARY CLOSENESS AND WILLINGNESS TO HELP ONE ANOTHER ARE EVIDENT AMONG USC STUDENTS, ALUMNI, FACULTY, AND STAFF; INDEED, FOR THOSE WITHIN ITS COMPASS THE TROJAN FAMILY IS A GENUINELY SUPPORTIVE COMMUNITY. ALUMNI, TRUSTEES, VOLUNTEERS, AND FRIENDS OF USC ARE ESSENTIAL TO THIS FAMILY TRADITION, PROVIDING GENEROUS FINANCIAL SUPPORT, PARTICIPATING IN UNIVERSITY GOVERNANCE, AND ASSISTING STUDENTS AT EVERY TURN. IN OUR SURROUNDING NEIGHBORHOODS AND AROUND THE GLOBE, USC PROVIDES PUBLIC LEADERSHIP AND PUBLIC SERVICE IN SUCH DIVERSE FIELDS AS HEALTH CARE, ECONOMIC DEVELOPMENT, SOCIAL WELFARE, SCIENTIFIC RESEARCH, PUBLIC POLICY, AND THE ARTS. WE ALSO SERVE THE PUBLIC INTEREST BY BEING THE LARGEST PRIVATE EMPLOYER IN THE CITY OF LOS ANGELES, AS WELL AS THE CITY'S LARGEST EXPORT INDUSTRY IN THE PRIVATE SECTOR. USC HAS PLAYED A MAJOR ROLE IN THE DEVELOPMENT OF SOUTHERN CALIFORNIA FOR MORE THAN A CENTURY AND PLAYS AN INCREASINGLY IMPORTANT ROLE IN THE Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 DEVELOPMENT OF THE NATION AND THE WORLD. THESE ROLES FOR MANY CENTURIES TO COME. WE EXPECT TO CONTINUE TO PLAY THUS OUR PLANNING, COMMITMENTS AND FISCAL POLICIES ARE DIRECTED TOWARD BUILDING QUALITY AND EXCELLENCE IN THE LONG TERM. FORM 990, PART I, LINE 6 THE UNIVERSITY OF SOUTHERN CALIFORNIA HAS MANY VOLUNTEERS INCLUDING TRUSTEES, BUT DOES NOT FORMALLY TRACK THIS POPULATION. FORM 990, PART III, LINE 4D OTHER PROGRAM SERVICES SPONSORED RESEARCH: THE MAJOR RESEARCH IS IN MEDICINE, ENGINEERING AND THE SCIENCES. THE INSTITUTION HAS 692 CONTRACTS/GRANTS AWARDED BY THE FEDERAL GOVERNMENT AND 803 AWARDED IN 2017-2018 BY PRIVATE CORPORATIONS, FOUNDATIONS, OTHER UNIVERSITIES, OR STATE AND LOCAL GOVERNMENTS FOR BASIC RESEARCH. FORM 990, PART VI, LINE 1 THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES IS CHAIRED BY THE CHAIRMAN OF THE BOARD AND CONSISTS OF NO LESS THAN SEVEN AND NO MORE THAN SEVENTEEN VOTING MEMBERS OF THE BOARD. THE COMMITTEE IS ELECTED EACH YEAR BY THE BOARD OF TRUSTEES. WHEN THE BOARD IS NOT IN SESSION, THE EXECUTIVE COMMITTEE HAS ALL OF THE POWER AND AUTHORITY OF THE BOARD, EXCEPT THAT THE EXECUTIVE COMMITTEE IS NOT EMPOWERED TO: (I) FILL VACANCIES ON THE BOARD OR ON ANY COMMITTEE THAT HAS THE AUTHORITY OF THE BOARD; (II) FIX THE COMPENSATION OF THE BOARD MEMBERS FOR THEIR SERVICE AS MEMBERS OF THE BOARD OR ANY COMMITTEE; (III) AMEND OR REPEAL THE Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 UNIVERSITY'S BYLAWS OR ADOPT NEW BYLAWS; (IV) AMEND OR REPEAL ANY RESOLUTION OF THE BOARD WHICH BY ITS EXPRESS TERMS CANNOT BE SO AMENDED OR REPEALED; (V) APPOINT COMMITTEES OF THE BOARD OR THE MEMBERS THEREOF; (VI) AUTHORIZE THE EXPENDITURE OF CORPORATE FUNDS TO SUPPORT A NOMINEE FOR BOARD MEMBERSHIP AFTER THERE ARE MORE PEOPLE NOMINATED FOR BOARD MEMBERSHIP THAN CAN BE ELECTED; OR (VII) APPROVE ANY SELF-DEALING TRANSACTION EXCEPT AS PROVIDED BY LAW. FORM 990, PART VI, LINE 2 OFFICERS, TRUSTEES AND KEY EMPLOYEES SIT ON THE BOARD OF THE MAY DEWRIGHT TRUST: JAMES M. STATEN ROHIT VARMA, MD (UNTIL 10/5/2017) JOHN MORK LAURA MOSQUEDA (FROM 10/6/2017) RICK J. CARUSO USC TRUSTEE THOMAS J. BARRACK, JR. AND USC TRUSTEE FRANK J. FERTITTA III HAVE A BUSINESS RELATIONSHIP. USC TRUSTEE WANDA M. AUSTIN, USC TRUSTEE ROBERT A. BRADWAY AND USC TRUSTEE RONALD D. SUGAR HAVE A BUSINESS RELATIONSHIP. USC TRUSTEE WANDA M. AUSTIN AND USC TRUSTEE RONALD D. SUGAR HAVE A BUSINESS RELATIONSHIP. Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 USC TRUSTEE MARK A. STEVENS AND USC TRUSTEE DANIEL J. EPSTEIN HAVE A BUSINESS RELATIONSHIP. USC TRUSTEE RONALD D. SUGAR AND USC TRUSTEE LEONARD D. SCHAEFFER HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, LINE 4 BYLAWS WERE AMENDED ON MAY 31, 2018 TO INCREASE THE NUMBER OF MEMBERS OF THE EXECUTIVE COMMITTEE TO INCLUDE THE CHAIRMAN OF THE AUDIT AND COMPLIANCE COMMITTEE. FORM 990, PART VI, LINE 11(B) THE UNIVERSITY OF SOUTHERN CALIFORNIA'S FORM 990 IS REVIEWED AT SEVERAL LEVELS. THE UNIVERSITY ENGAGES AN EXTERNAL PUBLIC ACCOUNTING FIRM TO ASSIST IN THE PREPARATION AND REVIEW OF ITS FORM 990 AND TO SIGN AS PAID PREPARER. AMONG THOSE WHO CONDUCT THE REVIEW OF THE FINAL FORM 990 AT THE UNIVERSITY INCLUDE MANAGEMENT, EXTERNAL COUNSEL, AND THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF TRUSTEES. THE REVIEW OF FORM 990 IS CONDUCTED PRIOR TO IT BEING FILED AND A FINAL COPY OF THE FORM 990 IS PROVIDED TO EACH MEMBER OF THE BOARD OF TRUSTEES BEFORE IT IS FILED. FORM 990, PART VI, LINE 12 THE UNIVERSITY HAS A CONFLICT OF INTEREST IN PROFESSIONAL AND BUSINESS PRACTICES POLICY AND PROCEDURE WHICH COVERS ALL COVERED EMPLOYEES AND THEIR CLOSE RELATIONS. A "COVERED EMPLOYEE" MEANS ALL FACULTY MEMBERS (INCLUDING PART-TIME AND VISITING FACULTY), STAFF AND OTHER EMPLOYEES Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 (SUCH AS POSTDOCTORAL SCHOLARS), AND STUDENTS (INCLUDING POSTDOCTORAL FELLOWS AND GRADUATE STUDENTS) EMPLOYED OR OTHERWISE ENGAGED BY THE UNIVERSITY. THE POLICY CONTINUES TO APPLY TO COVERED EMPLOYEES WHILE ON SABBATICAL OR OTHER LEAVES OR ON VACATION, WHILE VISITING OTHER INSTITUTIONS, AND WHILE CONSULTING WITH EXTERNAL ENTITIES. A "CLOSE RELATION" MEANS SPOUSES, DOMESTIC PARTNERS, AND PARENTS, CHILDREN, SIBLINGS, AND EACH OF THEIR RESPECTIVE SPOUSES OR DOMESTIC PARTNERS. EACH COVERED EMPLOYEE OWES PROFESSIONAL LOYALTY TO THE UNIVERSITY AND MUST BE ALERT TO THE POSSIBILITY THAT OUTSIDE OBLIGATIONS, FINANCIAL INTERESTS, EMPLOYMENT, AND CERTAIN FAMILY OR INTIMATE RELATIONSHIPS CAN AFFECT THAT COMMITMENT. THEREFORE, ALL COVERED EMPLOYEES ARE RESPONSIBLE FOR DETERMINING WHETHER THEY, OR THEIR CLOSE RELATIONS, HAVE A CONFLICT OF INTEREST OR COMMITMENT COVERED BY THIS POLICY. BECAUSE NO POLICY CAN ANTICIPATE THE FULL RANGE OF OUTSIDE RELATIONSHIPS AND ACTIVITIES THAT MAY GIVE RISE TO CONFLICTS OF INTEREST OR COMMITMENT, COVERED EMPLOYEES MUST DISCLOSE ANY OUTSIDE RELATIONSHIP OR ACTIVITY THAT MAY GIVE THE APPEARANCE OF A CONFLICT AS SOON AS FEASIBLE AFTER DISCOVERY OF THE CONFLICT. THE UNIVERSITY MUST DETERMINE WHETHER A CONFLICT OF INTEREST AND/OR COMMITMENT IS MANAGEABLE BEFORE A COVERED EMPLOYEE IS ALLOWED TO UNDERTAKE THE ACTIVITY GIVING RISE TO THE CONFLICT. THE COVERED EMPLOYEE MUST COMPLY WITH ALL MEASURES PUT IN PLACE TO MANAGE, REDUCE, OR ELIMINATE CONFLICTS OF INTEREST. THIS INCLUDES ANY REQUIREMENT THAT THE Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 COVERED EMPLOYEE PROVIDE A FOLLOW-UP DISCLOSURE AT A REASONABLE TIME INTERVAL TO PROVIDE AN UPDATE ON THE STATUS OF THE CONFLICT OF INTEREST OR COMMITMENT, AND HIS OR HER COMPLIANCE WITH THE MEASURES PUT IN PLACE TO MANAGE THE CONFLICT. ALL DISCLOSURES AS WELL AS DECISIONS ON HOW TO MANAGE THE CONFLICT SHOULD BE DOCUMENTED AND MAINTAINED BY THE PERSON OR COMMITTEE TO WHOM DISCLOSURE IS MADE, AS PROVIDED FOR IN THE POLICY. THE POLICY DOES NOT PRECLUDE THE SENIOR VICE PRESIDENT, PROVOST, OR DEAN, AS APPROPRIATE, FROM REQUIRING A COVERED EMPLOYEE TO PROVIDE ADDITIONAL CONFLICT OF INTEREST OR COMMITMENT INFORMATION OR TO DO SO ON A MORE FREQUENT BASIS (E.G., BI-ANNUALLY). IF A COVERED EMPLOYEE HAS ANY QUESTIONS ABOUT WHETHER AN OUTSIDE ACTIVITY MUST BE DISCLOSED, THE COVERED EMPLOYEE SHOULD CONSULT WITH HIS OR HER SUPERVISOR OR CONTACT THE OFFICE OF COMPLIANCE FOR GUIDANCE. SUPERVISORS WHO BECOME AWARE THAT COVERED EMPLOYEES UNDER THEIR SUPERVISION HAVE CONFLICTS OF INTEREST OR COMMITMENT COVERED BY THIS POLICY ARE OBLIGATED TO ENSURE THAT THE CONFLICT IS APPROPRIATELY DISCLOSED. IN ADDITION TO THE PROCEDURES SET FORTH IN THE UNIVERSITY'S CONFLICT OF INTEREST IN PROFESSIONAL AND BUSINESS PRACTICES POLICY, USC'S PROCUREMENT SERVICES DEPARTMENT MAY IDENTIFY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST OR COMMITMENT IN THE COURSE OF PERFORMING ITS DUTIES. IN THE EVENT THAT PROCUREMENT SERVICES IDENTIFIES AN ACTUAL OR POTENTIAL Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 CONFLICT OF INTEREST OR COMMITMENT, IT REQUIRES THE COVERED EMPLOYEE TO MAKE A DISCLOSURE UNDER THE CONFLICT OF INTEREST IN PROFESSIONAL AND BUSINESS PRACTICES POLICY, AND VERIFIES THAT ALL ACTUAL CONFLICTS ARE MANAGED BEFORE PROCEEDING. DEPENDING UPON THE CONFLICT, PROCUREMENT SERVICES MAY ALSO REFER THE ISSUE TO THE SENIOR VICE PRESIDENT FOR ADMINISTRATION OR HIS OR HER DESIGNEE, FOR RESOLUTION. PURCHASING SERVICES MAY SUSPEND ANY FURTHER ACTION ON THE REQUEST THAT INITIATED THE DISCLOSURE UNTIL SUCH TIME AS THE CONFLICT IS MANAGED. IN ADDITION TO THE PROCEDURES SET FORTH ABOVE, A UNIVERSITY FACULTY MEMBER OR NON-FACULTY EMPLOYEE IS REQUIRED TO OBTAIN THE PRIOR WRITTEN APPROVAL FROM THE PROVOST AND SENIOR VICE PRESIDENT FOR ACADEMIC AFFAIRS OR SENIOR VICE PRESIDENT FOR ADMINISTRATION BEFORE HE OR SHE MAY ENDORSE OR AUTHORIZE ENDORSEMENT OF ANY PRODUCT OR SERVICE ON BEHALF OF THE UNIVERSITY. FAILURE TO DISCLOSE AND MANAGE ACTUAL OR POTENTIAL CONFLICTS OF INTEREST UNDER THIS POLICY, INCLUDING THE EXPECTATIONS DETAILED ABOVE ABOUT WHAT AN INDIVIDUAL SHOULD OR SHOULD NOT DO, MAY BE CAUSE FOR DISCIPLINARY ACTION, WHICH MAY RESULT IN DISCIPLINE, UP THROUGH AND INCLUDING TERMINATION. FOR FACULTY, SUCH ACTION SHALL OBSERVE ALL PROVISIONS OF THE POLICIES PUBLISHED IN THE FACULTY HANDBOOK. ANY DISCIPLINARY ACTION AGAINST A FACULTY MEMBER OR NON-FACULTY EMPLOYEE UNDER THIS POLICY MUST TAKE INTO ACCOUNT THE SCALE OF THE OFFENSE, THE INDIVIDUAL'S INTENT, AND THE DEGREE OF WRONGDOING. Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 THE UNIVERSITY MAINTAINS A CONFLICT OF INTEREST POLICY FOR MEMBERS OF THE BOARD OF TRUSTEES. IN GENERAL, THE POLICY REQUIRES THAT A TRUSTEE MUST AVOID USING HIS OR HER POSITION FOR PERSONAL GAIN OR ADVANTAGE, OR TO OBTAIN A FAVORED STATUS FOR ANY SPECIAL GROUP, BUSINESS, OR FAMILY ENTITY WITH WHICH THE TRUSTEE IS AFFILIATED. MEMBERS OF THE BOARD OF TRUSTEES. THE POLICY APPLIES TO ALL VOTING A TRUSTEE WILL CONTINUE TO BE SUBJECT TO THE POLICY FOR FIVE YEARS AFTER LEAVING THE BOARD. IF A TRUSTEE BECOMES AWARE OF A FINANCIAL INTEREST THAT MAY BE MATERIAL, HE OR SHE IS REQUIRED TO IMMEDIATELY DISCLOSE THAT FINANCIAL INTEREST TO THE CHAIRMAN OF THE BOARD. SUCH DISCLOSURE IS IN ADDITION TO THE REQUIRED ANNUAL DISCLOSURES. - AFTER CONDUCTING A REASONABLE INVESTIGATION UNDER THE CIRCUMSTANCES, WHICH SHOULD INCLUDE AN ANALYSIS OF COMPARABLE ARRANGEMENTS OR TRANSACTIONS OR THE RECEIPT OF AN OPINION FROM AN EXPERT IN THE RELEVANT FIELD, THE BOARD SHOULD DETERMINE IN GOOD FAITH WHETHER USC COULD OBTAIN A MORE ADVANTAGEOUS FINANCIAL ARRANGEMENT OR TRANSACTION WITH REASONABLE EFFORTS FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. - IN ADDITION, THE BOARD SHOULD DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED MEMBERS, WITH KNOWLEDGE OF THE MATERIAL FACTS CONCERNING THE FINANCIAL ARRANGEMENT OR TRANSACTION AND THE TRUSTEE'S FINANCIAL INTEREST IN THE ARRANGEMENT OR TRANSACTION, WHETHER THE ARRANGEMENT OR Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 TRANSACTION IS IN USC'S BEST INTEREST, FOR ITS OWN BENEFIT AND IS FAIR AND REASONABLE TO USC. THE BOARD SHOULD MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE ARRANGEMENT OR TRANSACTION IN CONFORMITY WITH SUCH DETERMINATION. - SHOULD THE BOARD APPROVE THE FINANCIAL ARRANGEMENT OR TRANSACTION IN QUESTION, THE TRUSTEE WHO HAS A CONFLICT OF INTEREST WILL BE REQUIRED TO ACT IN GOOD FAITH AND WITH FAIRNESS, AND TO REFRAIN FROM EXERTING UNDUE PRESSURE OR INFLUENCE. IN THE BOARD'S DISCRETION, IT MAY ALSO REQUIRE SUCH TRUSTEE TO BE SUBJECT TO THE OVERSIGHT OF A DISINTERESTED TRUSTEE. THIS POLICY HAS BEEN APPROVED BY THE BOARD. FORM 990, PART VI, LINE 15 THE COMPENSATION OF THE UNIVERSITY'S PRESIDENT, OFFICERS AND KEY EMPLOYEES IS DETERMINED ANNUALLY USING THE SAFE HARBOR PROCESS DESCRIBED IN TREASURY REGULATION SECTION 53.4958-6. NAMELY, A COMMITTEE OF THE UNIVERSITY'S BOARD OF TRUSTEES TAKES THE FOLLOWING THREE STEPS: (1) IT ENSURES THAT NO MEMBER OF THE COMMITTEE HAS A CONFLICT OF INTEREST WITH RESPECT TO THE COMPENSATION ARRANGEMENT BEING REVIEWED, (2) IT LOOKS TO COMPARABILITY DATA AND SPECIALIZED COMPENSATION REPORTS (AND IN SOME CASES OPINIONS) PREPARED FOR THE UNIVERSITY BY COMPENSATION CONSULTANTS WITH RESPECT TO SIMILARLY QUALIFIED INDIVIDUALS IN COMPARABLE POSITIONS AT SIMILARLY SITUATED UNIVERSITIES, AND (3) IT MAINTAINS A CONTEMPORANEOUS RECORD OF ITS DELIBERATIONS AND DECISIONS. FORM 990, PART VI, LINE 19 THE UNIVERSITY MAKES ITS BYLAWS, FINANCIAL STATEMENTS/ANNUAL REPORT, Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 CONFLICT OF INTEREST IN PROFESSIONAL AND BUSINESS PRACTICES, AND CONFLICT OF INTEREST IN RESEARCH POLICIES AVAILABLE TO THE GENERAL PUBLIC ON THE ORGANIZATION'S WEBSITE. FORM 990, PART VII, SECTION A THE TITLE FOR AMBER MILLER IS DEAN, USC DORNSIFE COLLEGE OF LETTERS, ARTS AND SCIENCES. THE TITLE FOR LAURA MOSQUEDA IS KECK SCHOOL OF MEDICINE INTERIM DEAN (UNTIL 4/30/18) AND KECK SCHOOL OF MEDICINE DEAN (AS OF 5/01/18). THE TITLE FOR ROHIT VARMA, MD IS KECK SCHOOL OF MEDICINE DEAN (UNTIL 10/05/17). THE TITLE FOR DANI BYRD IS FORMER INTERIM DEAN, USC DORNSIFE COLLEGE OF LETTERS, ARTS AND SCIENCES. THE TITLE FOR STEVE A. KAY IS FORMER VISITING PROFESSOR OF NEUROLOGY. THE TITLE FOR CARMEN A. PULIAFITO, MD IS FORMER KECK SCHOOL OF MEDICINE DEAN FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS PRESENT VALUE ADJUSTMENT TO TRUST LIABILITY: $1,790,370 Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY Schedule O (Form 990 or 990-EZ) 2017 Page Name of the organization 2 Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 ATTACHMENT 1 FORM 990, PART V, LINE 4B - FOREIGN COUNTRIES SPAIN FRANCE UNITED KINGDOM HONG KONG CHINA KOREA, REPUBLIC OF (SOUTH) MEXICO TAIWAN ATTACHMENT 2 990, PART VII- COMPENSATION OF THE FIVE HIGHEST PAID IND. CONTRACTORS DESCRIPTION OF SERVICES NAME AND ADDRESS COMPENSATION DPR CONSTRUCTION, A GENERAL PARTNERSHIP 4665 MACARTHUR, CT #100 NEWPORT BEACH, CA 92660 CONSTRUCTION SVCS 108,181,744. HATHAWAY DINWIDDIE CONSTRUCTION COMPANY 275 BATTERY STREET, SUITE 300 SAN FRANCISCO, CA 94111 CONSTRUCTION SVCS 90,936,800. 2U, INC. 1150 S. OLIVE STREET, SUITE 2050 LOS ANGELES, CA 90015 ONLINE EDUCATION SVC 80,181,744. CONTEMPORARY SERVICES CORPORATION 17101 SUPERIOR STREET NORTHRIDGE, CA 91325-1961 CROWD MGMT& SECURITY 13,393,659. HAMILTON HEALTHCARE CONSTRUCTION 202 MERCURY CIRCLE POMONA, PA 19107 CONSTRUCTION SVCS 10,676,667. Schedule O (Form 990 or 990-EZ) 2017 JSA 7E1228 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA SCHEDULE R (Form 990) I 95-1642394 OMB No. 1545-0047 Related Organizations and Unrelated Partnerships À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37. I Department of the Treasury Internal Revenue Service Name of the organization I Attach to Form 990. Open to Public Inspection Go to www.irs.gov/Form990 for instructions and the latest information. Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA Part I 95-1642394 Identification of Disregarded Entities. Complete if the organization answered "Yes" on Form 990, Part IV, line 33. (a) Name, address, and EIN (if applicable) of disregarded entity (b) Primary activity 20-2108058 (1) USC GATEWAY, LLC UNIVERSITY GARDENS - UGB203 LOS ANGELES, CA 90089 80-0912056 (2) USC VERDUGO HILLS HOSPITAL, LLC UNIVERSITY GARDENS - UGB205 LOS ANGELES, CA 90089 (c) Legal domicile (state or foreign country) (d) Total income (e) End-of-year assets (f) Direct controlling entity PROPERTY MGMT CA 0. USC ACUTE CARE 0. USC CA (3) (4) (5) (6) Part II Identification of Related Tax-Exempt Organizations. Complete if the organization answered "Yes" on Form 990, Part IV, line 34, because it had one or more related tax-exempt organizations during the tax year. (a) Name, address, and EIN of related organization (b) Primary activity (c) Legal domicile (state or foreign country) (d) Exempt Code section (e) Public charity status (if section 501(c)(3)) (f) Direct controlling entity (g) Section 512(b)(13) controlled entity? Yes (1) AE MANN INSTIT. FOR BIOMEDICAL ENGINEER. C/O USC UGB203 (2) C/O USC UGB203 (3) (5) (7) LOS ANGELES, CA 90089 PACIFIC-12 CONFERENCE 1350 TREAT BOULEVARD 501(C)(3) 12A N/A EDUC. MEDIA CA 501(C)(3) 12A USC X USC SUPPORT CA 501(C)(3) 12A USC X LOS ANGELES, CA 90089 USC SUPPORT CA 501(C)(3) 12A USC X MANAGED CARE CA 501(C)(3) 10 USC X EDUC. MEDIA CA 501(C)(3) 7 USC X USC SUPPORT CA 501(C)(3) 12A N/A 95-4540991 LOS ANGELES, CA 90033 95-4474965 LOS ANGELES, CA 90089 94-1459048 WALNUT CREEK, CA 94597 For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1307 1.000 79590J 7377 X 95-6034304 SURVIVORS OF SHOAH VISUAL HISTORY FDN. C/O USC, 650 W. 35TH ST. DE 95-3168340 USC CARE MEDICAL GROUP, INC. 1510 SAN PABLO ST., SUITE 649 (6) LOS ANGELES, CA 90089 DAVID X. MARKS FOUNDATION C/O USC UGB203 BIOMEDICAL 95-4843260 LORD FOUNDATION OF CALIFORNIA C/O USC UGB203 (4) LOS ANGELES, CA 90089 ICT PRODUCTIONS, INC. No 95-4684347 V 17-7.10 X Schedule R (Form 990) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA SCHEDULE R (Form 990) I 95-1642394 OMB No. 1545-0047 Related Organizations and Unrelated Partnerships À¾µ» Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37. I Department of the Treasury Internal Revenue Service Name of the organization I Attach to Form 990. Open to Public Inspection Go to www.irs.gov/Form990 for instructions and the latest information. Employer identification number UNIVERSITY OF SOUTHERN CALIFORNIA Part I 95-1642394 Identification of Disregarded Entities. Complete if the organization answered "Yes" on Form 990, Part IV, line 33. (a) Name, address, and EIN (if applicable) of disregarded entity (b) Primary activity (c) Legal domicile (state or foreign country) (d) Total income (e) End-of-year assets (f) Direct controlling entity (1) (2) (3) (4) (5) (6) Part II Identification of Related Tax-Exempt Organizations. Complete if the organization answered "Yes" on Form 990, Part IV, line 34, because it had one or more related tax-exempt organizations during the tax year. (a) Name, address, and EIN of related organization (b) Primary activity (c) Legal domicile (state or foreign country) (d) Exempt Code section (e) Public charity status (if section 501(c)(3)) (f) Direct controlling entity (g) Section 512(b)(13) controlled entity? Yes (1) CLASSICAL PUBLIC RADIO NETWORK, LLC 7409 SOUTH ALTON COURT (2) (3) PHILADELPHIA, PA 19102 CO 501(C)(3) 12A USC USC SUPPORT PA 501(C)(3) 12D N/A USC SUPPORT CA 501(C)(3) 12A USC USC SUPPORT TX 501(C)(3) 12 N/A X X 95-3247823 GLENDALE, CA 91208 NAT'L HLTHCRE RESEARCH & EDUC FINANCE CO 1445 ROSS AVENUE, STE 3800 EDUC. MEDIA 77-6216147 USC VERDUGO HILLS HOSPITAL FOUNDATION 1812 VERDUGO BLVD (4) CENTENNIAL, CO 80112 THE ASC TRUST AT USC C/O R. FOX, 1500 MARKET STREET No 84-1474681 X 31-1707979 DALLAS, TX 75202 X (5) (6) (7) For Paperwork Reduction Act Notice, see the Instructions for Form 990. JSA 7E1307 1.000 79590J 7377 V 17-7.10 Schedule R (Form 990) 2017 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule R (Form 990) 2017 Part III Page 2 Identification of Related Organizations Taxable as a Partnership. Complete if the organization answered "Yes" on Form 990, Part IV, line 34, because it had one or more related organizations treated as a partnership during the tax year. (a) Name, address, and EIN of related organization (b) Primary activity (c) Legal domicile (state or foreign country) (d) Direct controlling entity (e) Predominant income (related, unrelated, excluded from tax under sections 512 - 514) (f) Share of total income (g) Share of end-ofyear assets (h) Disproportionate allocations? (i) Code V - UBI amount in box 20 of Schedule K-1 (Form 1065) Yes No (j) General or managing partner? (k) Percentage ownership Yes No (1) USC/SCA SURGICAL HOLDINGS, LLC 1510 SAN PABLO ST. LOS ANGELES HOLDING COMPANY CA USC RELATED 0. X 51.0000 INVESTMENTS NH USC RELATED 1,911,474. 50,910,967. 0. X 88.8500 INVESTMENTS MA USC RELATED 3,324,052. 30,733,367. 0. X 100.0000 INVESTMENTS CA USC RELATED 39,455. 1,972,115. 0. X 99.0000 (2) LAZARD EMERGING MARKETS INST. 20 TRAFALGAR SQ., STE 449 NASH (3) WELLINGTON TRUST COMPANY, NA C 200 CONGRESS STREET BOSTON, MA (4) LARDAS HOLDINGS, LLC 47-264055 863 BUNGALOW DRIVE EL SEGUNDO, (5) (6) (7) Part IV Identification of Related Organizations Taxable as a Corporation or Trust. Complete if the organization answered "Yes" on Form 990, Part IV, line 34, because it had one or more related organizations treated as a corporation or trust during the tax year. (a) Name, address, and EIN of related organization (b) Primary activity (c) Legal domicile (state or foreign country) (d) Direct controlling entity (e) Type of entity (C corp, S corp, or trust) (f) Share of total income (g) (h) (i) Share of Percentage Section 512(b)(13) end-of-year assets ownership controlled entity? Yes No (1) MAY ROBERTS DEWRIGHT TRUST 95-6284845 UNIVERSITY GARDENS - UGB203 LOS ANGELES, CA 90089-8003 (2) INTEGRATED DIGITAL ASSET CORPORATION USC SUPPORT CA USC T 906,063. 8,169,595. 100.0000 X 3RD PARTY CON CA USC C 0. 0. 100.0000 X USC T X USC T X 95-4680904 UNIVERSITY GARDENS - UGB203 LOS ANGELES, CA 90089-8003 (3) CHARITABLE REMAINDER TRUST (237) SEE PART VII FOR COLUMN (C) SEE PART VII, CA 90089 FUNDRAISING (4) POOLED INCOME FUND (1) FUNDRAISING CA (5) (6) (7) JSA 7E1308 1.000 79590J 7377 Schedule R (Form 990) 2017 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule R (Form 990) 2017 Part V Page 3 Transactions With Related Organizations. Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36. Note: Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule. Yes No a b c d e During the tax year, did the organization engage in any of the following transactions with one or more related organizations listed in Parts II-IV? Receipt of (i) interest, (ii) annuities, (iii) royalties, or (iv) rent from a controlled entity Gift, grant, or capital contribution to related organization(s) Gift, grant, or capital contribution from related organization(s) Loans or loan guarantees to or for related organization(s) Loans or loan guarantees by related organization(s) 1a 1b 1c 1d 1e f g h i j Dividends from related organization(s) Sale of assets to related organization(s) Purchase of assets from related organization(s) Exchange of assets with related organization(s) Lease of facilities, equipment, or other assets to related organization(s) 1f 1g 1h 1i 1j X X X X X k l m n o Lease of facilities, equipment, or other assets from related organization(s) Performance of services or membership or fundraising solicitations for related organization(s) Performance of services or membership or fundraising solicitations by related organization(s) Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) Sharing of paid employees with related organization(s) 1k 1l 1m 1n 1o X X X X X 1p 1q X X 1 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm p Reimbursement paid to related organization(s) for expenses q Reimbursement paid by related organization(s) for expenses X X X X X X 1r r Other transfer of cash or property to related organization(s) X s Other transfer of cash or property from related organization(s) 1s 2 If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds. (a) Name of related organization (b) Transaction type (a-s) (c) Amount involved (d) Method of determining amount involved (1) LORD FOUNDATION OF CALIFORNIA S 13,376,952. FMV (2) LORD FOUNDATION OF CALIFORNIA C 2,200,000. FMV (3) USC CARE MEDICAL GROUP, INC. Q 331,295,301. FMV (4) MAY ROBERTS DEWRIGHT TRUST S 1,673,393. FMV (5) MAY ROBERTS DEWRIGHT TRUST C 835,918. FMV (6) DAVID X. MARKS FOUNDATION C 1,534,000. FMV Schedule R (Form 990) 2017 JSA 7E1309 2.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule R (Form 990) 2017 Part V Page Transactions With Related Organizations. Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36. Note: Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule. Yes No a b c d e During the tax year, did the organization engage in any of the following transactions with one or more related organizations listed in Parts II-IV? Receipt of (i) interest, (ii) annuities, (iii) royalties, or (iv) rent from a controlled entity Gift, grant, or capital contribution to related organization(s) Gift, grant, or capital contribution from related organization(s) Loans or loan guarantees to or for related organization(s) Loans or loan guarantees by related organization(s) 1a 1b 1c 1d 1e f g h i j Dividends from related organization(s) Sale of assets to related organization(s) Purchase of assets from related organization(s) Exchange of assets with related organization(s) Lease of facilities, equipment, or other assets to related organization(s) 1f 1g 1h 1i 1j k l m n o Lease of facilities, equipment, or other assets from related organization(s) Performance of services or membership or fundraising solicitations for related organization(s) Performance of services or membership or fundraising solicitations by related organization(s) Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) Sharing of paid employees with related organization(s) 1k 1l 1m 1n 1o 1 3 mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm m mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm p Reimbursement paid to related organization(s) for expenses q Reimbursement paid by related organization(s) for expenses 1p 1q 1r r Other transfer of cash or property to related organization(s) s Other transfer of cash or property from related organization(s) 1s 2 If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds. (a) Name of related organization (b) Transaction type (a-s) (c) Amount involved (d) Method of determining amount involved (1) LAZARD EMERGING MARKETS INST. TRUST P 464,258. FMV (2) LAZARD EMERGING MARKETS INST. TRUST R 1,188,638. FMV (3) LAZARD EMERGING MARKETS INST. TRUST S 1,709,370. FMV (4) WELLINGTON TRST CO CTF REAL TOTAL RTRN PORTFO P 137,445. FMV (5) WELLINGTON TRST CO CTF REAL TOTAL RTRN PORTFO R 429,413. FMV (6) CLASSICAL PUBLIC RADIO LLC C 402,269. BOOK Schedule R (Form 990) 2017 JSA 7E1309 2.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule R (Form 990) 2017 Part VI Page 4 Unrelated Organizations Taxable as a Partnership. Complete if the organization answered "Yes" on Form 990, Part IV, line 37. Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships. (a) Name, address, and EIN of entity (b) Primary activity (c) Legal domicile (state or foreign country) (d) Predominant income (related, unrelated, excluded from tax under sections 512-514) (e) Are all partners section 501(c)(3) organizations? Yes No (f) Share of total income (g) Share of end-of-year assets (h) Disproportionate allocations? Yes No (i) Code V - UBI amount in box 20 of Schedule K-1 (Form 1065) (j) General or managing partner? Yes (k) Percentage ownership No (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) JSA Schedule R (Form 990) 2017 7E1310 1.000 79590J 7377 V 17-7.10 PUBLIC DISCLOSURE COPY UNIVERSITY OF SOUTHERN CALIFORNIA 95-1642394 Schedule R (Form 990) 2017 Part VII Page 5 Supplemental Information Provide additional information for responses to questions on Schedule R. See instructions. PART IV, LINE 4, COLUMN (C) THE LEGAL DOMICILES OF THE CHARITABLE REMAINDER TRUSTS INCLUDE: CA, CO, FL, HI, IL, IN, NV, NY, NC, PA, AND WA. Schedule R (Form 990) 2017 7E1510 1.000 79590J 7377 V 17-7.10 Report of Independent Auditors To the Board of Trustees of the University of Southern California We have audited the accompanying consolidated financial statements of the University of Southern California and its subsidiaries (collectively “The University”), which comprise the consolidated balance sheets as of June 30, 2018 and 2017, and the related consolidated statements of activities and cash flows for the years then ended. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on the consolidated financial statements based on our audits. We conducted our audits in 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 consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the University’s preparation and fair presentation of the consolidated 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 University’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 consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the University of Southern California and its subsidiaries as of June 30, 2018 and 2017, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The “2018-2019 Budget” is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the consolidated financial statements, and accordingly, we do not express an opinion or provide any assurance on it. PricewaterhouseCoopers LLP Los Angeles, CA November 21, 2018 10 / 2018 FINANCIAL REPORT University of Southern California Consolidated Balance Sheets in thousands June 30 2018 June 30 2017 $818,978 $783,505 461,051 406,630 Assets 1 Cash and cash equivalents 2 Accounts receivable, net 3 Notes receivable, net 4 Pledges receivable, net 5 Investments 6 Inventories, prepaid expenses and other assets 68,585 72,950 570,186 628,633 6,231,311 5,770,926 278,831 288,969 4,174,090 4,009,596 $12,603,032 $11,961,209 9 Accounts payable $273,631 $308,480 10 Accrued liabilities 750,430 564,341 7 Property, plant and equipment, net 8 Total Assets Liabilities 11 Refundable advances 15,974 18,190 12 Deposits and deferred revenue 261,894 246,641 13 Actuarial liability for annuities payable 108,842 124,277 14 Federal student loan funds 15 Asset retirement obligations 16 Capital lease obligations 17 Bonds and notes payable 18 Other liabilities 19 Total Liabilities 64,319 65,649 126,865 121,085 74,222 72,606 1,652,388 1,656,279 4,936 3,443 3,333,501 3,180,991 Net Assets 20 Without donor restrictions 4,331,141 4,151,215 21 With donor restrictions 4,938,390 4,629,003 22 Total Net Assets 9,269,531 8,780,218 $12,603,032 $11,961,209 23 Total Liabilities and Net Assets The accompanying notes are an integral part of this statement. University of Southern California 2018 FINANCIAL REPORT / 11 Consolidated Statements of Activities in thousands Year Ended June 30, 2018 Without Donor Restrictions With Donor Restrictions Total Net Assets Operating Revenues: 1 Student tuition and fees 2 Less financial aid $2,043,455 $2,043,455 (556,121) (556,121) 3 Net student tuition and fees 1,487,334 1,487,334 4 Health care services 1,726,724 1,726,724 5 Contracts and grants 515,956 515,956 6 Auxiliary enterprises 375,898 375,898 7 Sales and services 163,052 163,052 8 Contributions 292,758 292,758 9 Other 10 Allocation of endowment spending 11 Total Revenues 12 Net assets released from restrictions 13 Total Revenues and Reclassifications 138,208 138,208 236,896 236,896 4,936,826 4,936,826 155,927 ($155,927) 5,092,753 (155,927) 4,936,826 Expenses: 14 Salaries and benefits 2,808,353 2,808,353 15 Operating expenses 1,693,235 1,693,235 261,462 261,462 16 Depreciation 17 Interest on indebtedness 18 Expenses before Settlement 65,725 65,725 4,828,775 4,828,775 19 Increase (decrease) in Net Assets from Operating Activities before Settlement 263,978 20 Settlement (refer to Note 15) 215,000 (155,927) 108,051 215,000 48,978 (155,927) (106,949) 22 Allocation of endowment spending to operations (97,462) (139,434) (236,896) 23 Changes in funding status of defined benefit plan 23,433 24 Investment and endowment income 67,665 21 Increase (decrease) in Net Assets from Operating Activities Non-operating 25 Net appreciation in fair value of investments 26 Contributions 23,433 737 68,402 124,229 336,557 460,786 13,083 265,664 278,747 1,790 1,790 465,314 596,262 27 Present value adjustment to annuities payable 28 Loss on bond refunding 29 Increase in Net Assets from Non-operating Activities 30 Total increase in Net Assets 31 Beginning Net Assets 32 Ending Net Assets The accompanying notes are an integral part of this statement. 12 / 2018 FINANCIAL REPORT University of Southern California 130,948 179,926 309,387 489,313 4,151,215 4,629,003 8,780,218 $4,331,141 $4,938,390 $9,269,531 Consolidated Statements of Activities in thousands Year Ended June 30, 2017 Without Donor Restrictions With Donor Restrictions Total Net Assets Operating Revenues: 1 Student tuition and fees 2 Less financial aid $1,899,584 $1,899,584 (510,550) (510,550) 3 Net student tuition and fees 1,389,034 1,389,034 4 Health care services 1,552,230 1,552,230 5 Contracts and grants 475,185 475,185 6 Auxiliary enterprises 346,401 346,401 7 Sales and services 158,140 158,140 8 Contributions 281,084 281,084 9 Other 10 Allocation of endowment spending 11 Total Revenues 12 Net assets released from restrictions 13 Total Revenues and Reclassifications 113,652 113,652 227,920 227,920 4,543,646 4,543,646 141,320 ($141,320) 4,684,966 (141,320) 4,543,646 Expenses: 14 Salaries and benefits 2,532,294 2,532,294 15 Operating expenses 1,486,579 1,486,579 16 Depreciation 245,411 245,411 17 Interest on indebtedness 68,009 68,009 4,332,293 4,332,293 18 Total Expenses 19 Increase (decrease) in Net Assets from Operating Activities 352,673 (141,320) 211,353 20 Allocation of endowment spending to operations (91,670) (136,250) (227,920) 21 Changes in funding status of defined benefit plan (38,376) Non-operating 22 Investment and endowment income (38,376) 81,913 2,170 84,083 23 Net appreciation in fair value of investments 162,141 418,767 580,908 24 Contributions 22,547 306,378 328,925 25 Present value adjustment to annuities payable (3,896) 26 Loss on bond refunding (37,281) 27 Increase in Net Assets from Non-operating Activities 99,274 28 Total increase in Net Assets (3,896) (37,281) 587,169 686,443 451,947 445,849 897,796 29 Beginning Net Assets 3,699,268 4,183,154 7,882,422 30 Ending Net Assets $4,151,215 $4,629,003 $8,780,218 The accompanying notes are an integral part of this statement. University of Southern California 2018 FINANCIAL REPORT / 13 Consolidated Statements of Cash Flows in thousands Year Ended June 30, 2018 Year Ended June 30, 2017 $489,313 $897,796 261,462 245,411 Cash Flows from Operating Activities 1 Change in Net Assets Adjustments to reconcile change in net assets to net cash provided by operating activities: 2 Depreciation and amortization 3 Loss on the disposal/sale of plant assets 4 In-kind receipt of property, plant and equipment 1,160 6,560 (1,624) (3,205) 5 Maturities and present value adjustment to annuities payable (1,663) 3,685 6 Increase in accounts receivable (54,421) (22,916) 7 Increase in pledges receivable (64,109) (82,942) 8 Increase in inventories, prepaid expenses and other assets (46,188) (10,848) 9 (Decrease) increase in accounts payable (34,017) 10 Increase (decrease) in accrued liabilities 262,358 28,391 (44,529) 11 Decrease in refundable advances (2,216) (1,663) 12 Increase in deposits and deferred revenue 15,253 46,016 13 Increase (decrease) in other liabilities 14 Contributions restricted for property, plant and equipment and permanent investment 1,493 (242,161) (703) (244,298) 15 Net realized gain on sale of investments (228,398) (128,978) 16 Net unrealized (appreciation) in investments (232,402) (452,088) 17 Net Cash provided by Operating Activities 123,840 235,689 Cash Flows from Investing Activities 18 Proceeds from note collections 19 Notes issued 20 Proceeds from sale and maturity of investments 21 Purchase of investments 22 Purchase of property, plant and equipment 23 Net Cash used in Investing Activities 16,372 14,584 (10,251) (11,436) 4,471,561 5,476,450 (4,495,337) (5,327,902) (420,545) (690,526) (438,200) (538,830) Cash Flows from Financing Activities Contributions restricted for permanent investment: 24 Endowment 223,520 244,180 25 Plant 139,252 117,402 26 Trusts and other 27 Repayments of capital lease obligation 28 Repayment of long-term debt 29 Proceeds from issuance of long-term debt 1,947 1,616 (1,400) 830 (54,389) (673,930) 1,124,900 30 Decrease in federal student loan funds (1,330) (3,222) 31 Investment (loss) on annuities payable (6,667) (17,414) 32 Payment on annuities payable (11,315) (11,269) 33 Increase to annuities payable resulting from new contributions 34 Net Cash provided by Financing Activities 35 Net increase in Cash and Cash Equivalents 36 Cash and Cash Equivalents at beginning of year 37 Cash and Cash Equivalents at end of year The accompanying notes are an integral part of this statement. 14 / 2018 FINANCIAL REPORT University of Southern California 4,210 2,677 349,833 729,765 35,473 426,624 783,505 356,881 $818,978 $783,505 Notes to Consolidated Fınancial Statements Note 1 Measure of Operations: Significant Accounting Policies Followed by the University of Southern California are Set Forth Below: The university’s measure of operations as presented in the consolidated statements of activities includes revenue from tuition (net of certain scholarships and fellowships) and fees, grants and contracts, health care services, contributions for operating programs, the allocation of endowment spending for operations and other revenues. Operating expenses are reported on the consolidated statement of activities by natural classification. General: The University of Southern California (“university”) is a not-for-profit (“NFP”), major private research university. The university is generally exempt from federal income taxes under the provisions of Internal Revenue Code Section 501(c)(3). The university is also generally exempt from payment of California state income, gift, estate and inheritance taxes. Basis of Presentation: The consolidated financial statements have been prepared on the accrual basis of accounting, in accordance with accounting principles generally accepted in the United States of America and with the provisions of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958, Not-for-Profit Entities, which requires the university to classify its net assets into two categories according to donorimposed restrictions: net assets without donor-imposed restrictions and net assets with donor-imposed restrictions. All material transactions between the university and its subsidiaries have been eliminated. Net Assets Without and With Donor Restrictions: Net assets without donor restrictions are the part of net assets of a notfor-profit entity that are not subject to donor-imposed restrictions. A donor-imposed restriction is a donor stipulation that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: a) the nature of the not-for-profit entity, b) the environment in which it operates and c) the purposes specified in its articles of incorporation or bylaws or comparable documents. This classification includes all revenues, gains and expenses not restricted by donors. The university reports all expenditures in this class of net assets, since the use of restricted contributions in accordance with donors’ stipulations results in the release of the restriction. The part of net assets of a not-for-profit entity that is subject to donorimposed restrictions include contributions for which donor-imposed restrictions have not been met (primarily future capital projects), endowment appreciation, charitable remainder unitrusts, pooled income funds, gift annuities and pledges receivable are included in with donor restrictions net assets. The university’s non-operating activity within the consolidated statement of activities includes, investment returns and other activities related to endowment, long-term benefit plan obligation funding changes, student loan net assets and contributions related to land, buildings and equipment that are not part of the university’s operating activities. Other Accounting Policies: Cash and cash equivalents consist of U.S. Treasury bills, certificates of deposit, money market funds and all other short-term investments available for current operations with original maturities of 90 days or less at the time of purchase. Investments are stated at fair value. Net appreciation (depreciation) in the fair value of investments, which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments, is shown in the consolidated statement of activities. Realized gains and losses upon the sale of investments are calculated using the specific identification method and trade date. Alternative investment holdings and certain other limited partnership interests are invested in both publicly traded and privately owned securities. The fair values of private investments are based on estimates and assumptions of the general partners or partnership valuation committees in the absence of readily determinable market values. Such valuations generally reflect discounts for illiquidity and consider variables such as financial performance of investments, recent sales prices of investments and other pertinent information. The university applies the provision of FASB ASC 820, Fair Value Measurements, which defines fair value 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. University of Southern California 2018 FINANCIAL REPORT / 15 Notes to Consolidated Fınancial Statements Note 1 (continued) Inventories are valued at the lower of cost (first in, first out) or market. The following describes the hierarchy of inputs used to measure fair value and the primary valuation methodologies used by the university for financial instruments measured at fair value on a recurring basis. The three levels of inputs are as follows: Property, plant and equipment, including collections of works of art and historical treasures, are stated at cost or fair value at the date of contribution, plus the estimated value of any associated legal retirement obligations, less accumulated depreciation, computed on a straightline basis over the estimated useful or component lives of the assets (equipment and library books useful lives ranging from 4 to 10 years and buildings component lives ranging from 5 to 50 years). Equipment is removed from the records at the time of disposal. The university follows the policy of recording contributions of long-lived assets directly in without donor restrictions when the purpose or time restriction is met instead of recognizing the contribution over the useful life of the asset. • Level I - Quoted prices in active markets for identical assets or liabilities. • Level II - Inputs other than Level I that are observable, either directly or indirectly, 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 same term of the assets or liabilities. • Level III - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level III investments are valued by the university based upon valuation information received from the relevant entity which may include last trade information, third-party appraisals of real estate or valuations prepared by custodians for assets held in trusts by other trustees where the university is named as a beneficiary. The university may also utilize industry standard valuation techniques, including discounted cash flow models. Significant increases or decreases in these inputs in isolation may result in a significantly lower or higher fair value measurement, respectively. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The university applies the authoritative guidance contained in FASB ASC 820-10, Fair Value Measurements and Disclosures, for estimating the fair value of investments in investment funds that have calculated Net Asset Value (NAV) per share in accordance with FASB ASC 94610, Financial Services-Investment Companies (formerly the American Institute of Certified Public Accountants Audit and Accounting Guide, Investment Companies). According to this guidance, in circumstances in which NAV per share of an investment is not determinative of fair value, a reporting entity is permitted to estimate the fair value of an investment in an investment fund using the NAV per share of the investment (or its equivalent) without further adjustment, if the NAV per share of the investment is determined in accordance with FASB ASC 946-10 as of the reporting entity’s measurement date. Accordingly, the university uses the NAV as reported by the money managers as a practical expedient to determine the fair value of investments in investment funds which (a) do not have a readily determinable fair value and (b) either have the attributes of an investment fund or prepare their financial statements consistent with the measurement principles of an investment fund. At June 30, 2018 and 2017, the fair value of all such investments in investment funds has been determined by using NAV as a practical expedient, adjusted for capital calls, distributions and significant known valuation changes, if any, of its related portfolio. 16 / 2018 FINANCIAL REPORT University of Southern California The university’s split interest agreements with donors consist primarily of gift annuities, unitrusts, pooled income funds and life estates. For irrevocable agreements, assets contributed are included in the university’s investments and stated at fair value. Contribution revenue is recognized at the date each trust is established after recording liabilities for the actuarially determined present value of the estimated future payments to be made to the beneficiaries. The actuarial liability is discounted at an appropriate risk-adjusted rate at the inception of each agreement and the applicable actuarial mortality tables. Discount rates on split interest agreements range from 2.7% to 7.5%. The liabilities are adjusted during the terms of the trusts for changes in the fair value of the assets, accretion of discounts and other changes in the estimates of future benefits. The valuation follows generally accepted actuarial methods and is based on the requirements of FASB ASC 958. Included in the university’s investments are split interest agreements. The 2012 Individual Annuity Mortality Basic Table (without margin) for Males and Females with Projection Scale G2 for Males and Females were used in the valuations. For split interest agreements related to the state of Washington, the university holds a Certificate of Exemption issued by the state of Washington’s Office of Insurance Commissioner to issue charitable gift annuities. The university has been in compliance with Revised Code of Washington 48.38.010(6) throughout the time period covered by the financial statements. The university has recorded conditional asset retirement obligations associated with the legally required removal and disposal of certain hazardous materials, primarily asbestos, present in its facilities. When an asset retirement obligation is identified, the university records the fair value of the obligation as a liability. The fair value of the obligation is also capitalized as property, plant and equipment and then amortized over the estimated remaining useful life of the associated asset. The fair value of the conditional asset retirement obligations is estimated using a probability weighted, discounted cash flow model. The present value of future estimated cash flows is calculated using the credit adjusted interest rate applicable to the university in order to determine the fair value of Notes to Consolidated Fınancial Statements Note 1 (continued) the conditional asset retirement obligations. For the years ended June 30, 2018 and 2017, the university recognized accretion expense related to conditional asset retirement obligations of approximately $6,237,000 and $5,973,000, respectively. For the years ended June 30, 2018 and 2017, the university settled asset retirement obligations of approximately $1,000,000 and $800,000, respectively. As of June 30, 2018 and 2017, included in the consolidated balance sheets are asset retirement obligations of $126,865,000 and $121,085,000, respectively. Student tuition and fees are recorded as revenues during the year the related academic services are rendered. Student tuition and fees received in advance of services to be rendered are recorded as deferred revenue. Sponsored research agreements recognize contracts and grants revenue as it is earned through expenditure in accordance with the agreement. Any funding received in advance of expenditure is recorded as a refundable advance. Departmental net assets include contributions to the university and its various schools and departments. The university has determined that any donor-imposed restrictions of contributions for current or developing programs and activities are generally met within the operating cycle of the university and therefore, the university’s policy is to record these net assets as without donor restrictions. Internally designated net assets are those which have been appropriated by the Board of Trustees or designated by management. The university receives federal reimbursement for a portion of the costs of its facilities and equipment used in organized sponsored research. The federal Office of Management and Budget establishes principles for determining such reimbursable costs and requires conformity of the lives and methods used for federal cost reimbursement accounting and financial reporting purposes. The university’s policies and procedures are in conformity with these principles. Contributions from donors, including contributions receivable (unconditional promises to give), are recorded as revenues in the year received. Non cash contributions are valued using quoted market prices, market prices for similar assets, independent appraisals or appraisals performed by university management. Contributions receivable are reported at their discounted value using credit-adjusted borrowing rates and an allowance for amounts estimated to be uncollectible is provided. Donor-restricted contributions, which are received and either spent or deemed spent within the same year, are reported as revenue without donor restrictions. Contributions of long-lived assets with no donor-imposed time restrictions are reported as without donor restrictions revenue in the year received. Contributions restricted to the acquisition or construction of long-lived assets or subject to other time or purpose restrictions are reported as with donor restrictions revenue. The donor-restricted net assets resulting from these contributions are released to without donorrestricted net assets when the donor-imposed restrictions are fulfilled or the assets are placed in service. Contributions received for endowment investment are held in perpetuity and recorded as with donor restrictions revenue. Health care services revenues include the net patient service revenues associated with Keck Hospital of USC, USC Norris Cancer Hospital, USC Verdugo Hills Hospital and USC Care Medical Group, Inc. Net patient service revenue is reported as estimated net realizable amounts from patients, third-party payors, government programs and others in the period in which services are provided. The majority of the health care services are rendered to patients with commercial or managed care insurance or under the federal Medicare and California Medi-Cal programs. Reimbursement from these various payors is based on a combination of prospectively determined rates, discounts from charges and historical costs. Amounts received under the Medicare program are subject to retroactive settlements based on review and final determination by program intermediaries or their agents. Provisions for contractual adjustments and retroactive settlements related to those payors are accrued on an estimated basis in the period the related services are rendered and adjusted in future periods as additional information becomes known or final settlements are determined. Health care services revenues also include the revenues associated with the professional services agreement with the County of Los Angeles. Allowance for doubtful accounts is based upon management’s assessment of historical and expected net collections considering historical business and economic conditions. Periodically throughout the year, management assesses the adequacy of the allowance for doubtful accounts based upon historical write-off experience. The results of this review are then used to make any modifications to the allowance for doubtful accounts. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Certain reclassifications have been made to prior years’ financial statements for comparative purposes. University of Southern California 2018 FINANCIAL REPORT / 17 Notes to Consolidated Fınancial Statements Note 1 (continued) Recent Accounting Pronouncements: In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive standard for revenue recognition across all industries and supersedes most existing revenue recognition guidance. In addition, ASU 2014-09 requires new and enhanced disclosures. ASU 2014-09 will become effective for annual reporting periods beginning after December 15, 2017. The university is currently evaluating the effect of adoption to the financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires recognition of rights and obligations arising from lease contracts, including existing and new arrangements, as assets and liabilities on the balance sheet. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018. The university is currently evaluating the effect of adoption to the financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The standard addresses the classification of certain transactions within the statement of cash flows, including cash payments for debt repayment or debt extinguishment costs, contingent considerations payments made after a business combination, and distribution received from equity method investments. The ASU is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The university is currently evaluating the effect of adoption to the financial statements. The new standard also affirms the FASB’s intent to retain that NFP “portfolio-wide” fair value option under its new investment recognition and measurement rules that will take effect in fiscal years beginning after December 15, 2018. NFPs that early-adopt the consolidation guidance should apply the new guidance retrospective to earlier periods affected by that adoption. The university is evaluating the impact that the standard will have on the consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU 2017-17, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that an employer report the service cost component of pension costs in the same line item as employee compensation costs within operating income. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, and will not be eligible for capitalization. The ASU is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The university is currently evaluating the effect of adoption to the financial statements. In June 2018, the FASB issued ASU 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. The standard is intended to clarify and improve the scope and the accounting guidance for contributions received and made. The ASU is effective for fiscal years beginning after June 15, 2018, including interim periods within that annual period. Early adoption is permitted. The university is currently evaluating the effect of adoption to the financial statements. In January 2017, the FASB issued ASU 2017-02, Clarifying When a Not-for-Profit Entity that is a General Partner or a Limited Partner Should Consolidate a For Profit Limited Partnership or Similar Entity, In August 2018, the FASB issued ASU 2018-13, Fair Value which amends the consolidation guidance for NFP entities in ASC 958810. The issued final guidance clarifies the model used by NFP entities to evaluate the consolidation of investments in limited partnerships (and limited liability companies that are similar to limited partnerships). Under the new guidance, NFP investors in a limited partnership or a similar entity will continue to apply a presumption that the general partner has control and should consolidate the investments unless substantive kickout or participation rights held by any limited partners overcome that presumption. If the general partner does not have control, the limited partners have to evaluate whether they have control. If a limited partner has control, the consolidation is required unless the investment is part of a portfolio for which the NFP “portfolio-wide” fair value option has been elected. In that situation, the limited partner can instead report its interest at fair value, mirroring an exception that already exists for NFP general partners. nonpublic entities to report transfers in and out of Level 3 of the fair value hierarchy, as well as purchases and issue of Level 3 assets and liabilities, instead of the requirement to provide a reconciliation of opening and closing balances. Under the new guidance, for investments in certain entities that calculate net asset value, the requirement to disclose the estimate of period of time over which the underlying assets might be liquidated is replaced by the disclosure of that time period if the investee has announced the timing publicly. The ASU is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The university is currently evaluating the effect of adoption to the financial statements. 18 / 2018 FINANCIAL REPORT University of Southern California Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which requires Notes to Consolidated Fınancial Statements Note 2 Liquidity and Availability: USC’s financial assets available within one year of the balance sheet date for general expenditure are as follows (in thousands): Total assets at year end Year Ended June 30, 2018 Year Ended June 30, 2017 $12,603,032 $11,961,209 Less: Notes receivable due in more than one year Pledges receivable due in more than one year (11,562) (14,501) (454,270) (509,162) Donor-restricted endowment funds (4,060,117) (3,725,821) Board-designated endowment funds (1,484,150) (1,404,699) Annuities and living trusts (168,332) (149,323) Inventories, prepaid expenses and other assets (100,622) (218,417) (4,174,090) (4,009,596) Property, plant and equipment Financial assets available at year end for current use $2,149,889 $1,929,690 The university’s endowment funds consist of donor-restricted and board-designated endowment funds. Income from donor-restricted endowments is restricted for specific purposes and therefore, is not available for general expenditure. As described in Note 7, for fiscal year 2018 and 2017, the Board of Trustees approved current distribution of 100% of the prior year’s payout, within a minimum of 4% and a maximum of 6% of the average market value for the previous 12 calendar quarters. Under the provision of the spending rule, for fiscal year 2018 and 2017, the Board of Trustees approved an endowment pool payout of $28.87 a share, for a total spending rule allocation of $233,765,000 and $224,725,000. As described in Note 6, the university also has unfunded commitments on alternative investments totaling $656,181,000 and $522,228,000 for fiscal year 2018 and 2017. As part of the university’s liquidity management, it has a policy to structure its financial assets to be available as its general expenditures, liabilities and other obligations come due. In addition, the university invests cash in excess of daily requirements in short-term investments. To help manage unanticipated liquidity needs, the university has committed lines of credit in the amount of $500,000,000, which it could draw upon. Additionally, the university has a board-designated endowment of $1,484,150,000 as of June 30, 2018. Although the university does not intend to spend from its board-designated endowment funds other than amounts appropriated for general expenditures as part of its annual budget approval and appropriation process, amounts from its board-designated endowment could be made available if necessary. However, both the board-designated endowment fund and donor-restricted endowments contain investments with lock-up provisions that reduce the total investments that could be made available (see Note 6 for disclosures about investments). Note 3 Accounts Receivable: Accounts receivable are summarized as follows at June 30 (in thousands): 2018 2017 U.S. Government $37,938 $39,909 Student and other, net of allowance for doubtful accounts of $12,505 (2018), $12,000 (2017) 187,992 152,193 Patient care, net allowance for doubtful accounts of $13,999 (2018), $10,125 (2017) 235,121 214,528 $461,051 $406,630 Total University of Southern California 2018 FINANCIAL REPORT / 19 Notes to Consolidated Fınancial Statements Note 4 Loans and Notes Receivable: The university is required to disclose the nature of credit risk inherent in the portfolio of financing receivables, its analysis and assessment in arriving at the allowance for credit losses (doubtful accounts) and the changes and reasons for those changes in the allowance for credit losses. Long-term financing receivables as of June 30, 2018, consist of the following (in thousands): June 30, 2018 Financing Receivables, Gross Perkins loans $45,734 University student loans 11,547 Other student loans 14,272 Total student loans 71,553 Faculty and other loans 33,532 Total Allowance for Doubtful Accounts $105,085 Net $45,734 ($2,968) 8,579 14,272 (2,968) 68,585 ($2,968) $102,117 33,532 Long-term financing receivables as of June 30, 2017, consist of the following (in thousands): June 30, 2017 Financing Receivables, Gross Perkins loans $47,350 University student loans 15,761 Other student loans 14,271 Total student loans 77,382 Faculty and other loans Total Allowance for Doubtful Accounts ($4,432) 11,329 (4,432) 72,950 ($4,432) $106,132 14,271 33,182 $110,564 Net $47,350 33,182 Management regularly assesses the adequacy of the allowance for credit losses by performing ongoing evaluations of the student loan portfolio, including such factors as the differing economic risks associated with each loan category, the financial condition of specific borrowers, the economic environment in which the borrowers operate, the level of delinquent loans, the value of any collateral and where applicable, the existence of any guarantees or indemnifications. The university’s Perkins loans represent the amounts due from current and former students under the Federal Perkins Loan Program. Loans disbursed under the Federal Perkins Loan Program are able to be assigned to the federal government in certain non-repayment situations. In these situations, the federal portion of the loan balance is guaranteed. Included in other student loans are loans related to the Federal Health Professional Student Loan Program and Loans for Disadvantaged Students. Factors also considered by management when performing its assessment of the adequacy of the allowance, in addition to general economic conditions and the other factors described above include, but are not limited to a detailed review of the aging of the student loan receivable detail and a review of the default rate by loan category in comparison to prior years. The level of the allowance is adjusted based on the results of management’s analysis. It is the university’s policy to write off a loan only when it is deemed to be uncollectible. 20 / 2018 FINANCIAL REPORT University of Southern California Notes to Consolidated Fınancial Statements Note 4 (continued) The following table illustrates the aging analysis of receivables as of June 30, 2018 (in thousands): Perkins loans 1-60 Days Past Due 61-90 Days Past Due > 91 Days Past Due Current Total Financing Receivables $45,734 $1,164 $210 $6,865 $37,495 University student loans 277 14 5,940 5,316 11,547 Other student loans 417 8 308 13,539 14,272 Total student loans 1,858 232 13,113 56,350 71,553 33,532 33,532 $13,113 $89,882 $105,085 Faculty and other loans Total $1,858 $232 The following table illustrates the aging analysis of receivables as of June 30, 2017 (in thousands): Perkins loans 1-60 Days Past Due 61-90 Days Past Due > 91 Days Past Due Current Total Financing Receivables $1,174 $333 $6,719 $39,124 $47,350 University student loans 297 39 8,633 6,792 15,761 Other student loans 878 5 338 13,050 14,271 Total student loans 2,349 377 15,690 58,966 77,382 33,182 33,182 $2,349 $377 $15,690 $92,148 $110,564 Faculty and other loans Total Considering the other factors already discussed herein, management considers the allowance for credit losses to be prudent and reasonable. Furthermore, the university’s allowance is general in nature and is available to absorb losses from any loan category. Management believes that the allowance for credit losses at June 30, 2018 and 2017, is adequate to absorb credit losses inherent in the portfolio as of these dates. As part of the program to attract and retain exemplary faculty and senior staff, the university provides home mortgage financing assistance. Notes receivable amounting to $33,532,000 and $33,182,000 were outstanding as of June 30, 2018 and 2017, respectively, and are collateralized by deeds of trust. No allowance for doubtful accounts has been recorded against these loans based on their collateralization and prior collection history. At June 30, 2018, there were no amounts past due under the faculty and staff loan program. Determination of the fair value of notes receivable, which are primarily federally sponsored student loans with U.S. government-mandated interest rates and repayment terms, and subject to significant restrictions as to their transfer or disposition, could not be made without incurring excessive costs. University of Southern California 2018 FINANCIAL REPORT / 21 Notes to Consolidated Fınancial Statements Note 5 Pledges Receivable: Unconditional promises are included in the consolidated financial statements as pledges receivable and revenue of the appropriate net asset category. Pledges are recorded after discounting using rates ranging from 1% to 6% in order to derive the present value of the future cash flows. Unconditional promises are expected to be realized in the following periods (in thousands): Less than one year 2018 2017 $115,916 $119,471 One to five years 362,714 372,118 More than five years 242,007 279,057 Less: discount (94,478) (117,951) Less: allowance (55,973) Total $570,186 (24,062) $628,633 Pledges receivable at June 30 have the following restrictions (in thousands): Endowment for departmental programs and activities Endowment for scholarship Building construction Departmental programs and activities Total 2018 2017 $254,888 $316,789 28,492 27,487 144,507 125,398 142,299 158,959 $570,186 $628,633 Conditional pledges for the university, which depend on the occurrence of specified future and uncertain events, at June 30, 2018 and 2017, was $345,517,000 and $392,958,000, respectively. The majority of these conditional pledges are related to construction of the Ellison Institute for Transformative Medicine, as well as the renovation of the Los Angeles Memorial Coliseum. Note 6 Investments: Investments consist of the following at June 30 (in thousands): 2018 2017 $2,291,991 $2,129,926 1,114,134 1,014,546 Hedge funds 1,107,682 1,056,032 Private capital 1,360,698 1,226,246 Real estate and other 207,078 198,056 Assets held by other trustees 149,728 146,120 $6,231,311 $5,770,926 Equities Fixed income securities Alternative investments: Total 22 / 2018 FINANCIAL REPORT University of Southern California Notes to Consolidated Fınancial Statements Note 6 (continued) The following table summarized the levels of financial instruments carried at fair value as defined by ASC 820 valuation hierarchy defined previously, for the year ended June 30, 2018 (in thousands): Level I Level II Level III NAV Total $2,081,176 $738 $94,416 $115,661 $2,291,991 324,488 757,909 31,737 1,107,682 1,107,682 1,360,698 1,360,698 170,833 207,078 $2,754,874 $6,231,311 Investments: Equities Fixed income securities 1,114,134 Hedge funds Private capital Real estate and other 36,245 Assets held by other trustees Total 149,728 $2,405,664 $758,647 149,728 $312,126 The following table summarized the levels of financial instruments carried at fair value as defined by ASC 820 valuation hierarchy defined previously, for the year ended June 30, 2017 (in thousands): Level I Level II Level III NAV Total $1,935,088 $699 $83,402 $110,737 $2,129,926 315,350 669,907 29,289 1,056,032 1,056,032 1,226,246 1,226,246 154,456 198,056 $2,547,471 $5,770,926 Investments: Equities Fixed income securities 1,014,546 Hedge funds Private capital Real estate and other 43,600 Assets held by other trustees 146,120 Total $2,250,438 $670,606 146,120 $302,411 The following table summarized the university’s Level III reconciliation of investments for the year ended June 30, 2018 (in thousands): Beginning Balance Purchases Sales and Maturities Realized Gain Unrealized Gain/(Loss) Transfers In Transfers Out Ending Balance Investments: Equities $83,402 $11,014 Fixed income securities 29,289 $41,104 ($38,324) Real estate and other 43,600 34 $41,138 Assets held by other trustees Total $276 (608) (6,674) (820) 200 ($44,998) ($544) $14,214 146,120 $302,411 $94,416 31,737 ($95) 36,245 ($95) $312,126 3,608 149,728 $0 The following table summarized the university’s Level III reconciliation of investments for the year ended June 30, 2017 (in thousands): Beginning Balance Purchases Sales and Maturities 9,471 $49,242 (30,306) 37,545 8,883 (2,891) Realized Gain Unrealized Gain/(Loss) Transfers In Transfers Out Ending Balance Investments: Equities Fixed income securities Real estate and other Assets held by other trustees Total $73,602 ($7) $9,807 $481 99 (309) (184) 149,718 272 (4,895) (578) 2,263 $270,336 $58,397 ($38,099) ($406) $11,985 $83,402 $302 29,289 660 ($104) 43,600 (660) 146,120 $962 ($764) $302,411 University of Southern California 2018 FINANCIAL REPORT / 23 Notes to Consolidated Fınancial Statements Note 6 (continued) The university uses the NAV to determine the fair value of all the underlying investments which (a) do not have a readily determinable fair value and (b) prepare their financial statements consistent with the measurement principles of an investment company or have the attributes of an investment company. The following table lists investments by major category for the years ending June 30, 2018 (in thousands): At June 30, 2018 Fair Value Determined Using NAV Unfunded Commitments $15,736 $17,042 1,107,683 U.S. and Non-U.S. Investments in Upstream, Midstream and Downstream Natural Resources Investments Private Capital Partnerships Category of Investment Investment Strategy Distressed Obligation Partnerships U.S. and Non-U.S. Distressed Debt Securities Hedge Funds U.S. and Non-U.S. Investments in Relative Value, Event Driven, Long/Short and Directional Strategies Natural Resources Partnerships Redemption Restrictions and Terms Remaining Life Redemption Terms Approximately 2 Years Redemptions are not permitted during the life of the fund. Not Applicable 58,868 99.9% of NAV has an openended life and 0.1% of NAV will be liquidated on an undetermined basis. Ranges between bimonthly redemption with 75 days notice, monthly redemption with 90 days notice, quarterly redemption with up to 120 days notice, semiannual redemption with 60 to 90 days notice, annual redemption with up to 120 days notice, biannual redemption with 90 days notice and 5-year lockup with 90 days notice. 1% of NAV is lockedup for 1 month, 17% of NAV is locked-up for 3 months, 52% of NAV is locked-up for 1 year and 30% of NAV is locked-up for more than 1 year. 501,549 191,668 Approximately 4 Years Redemptions are not permitted during the life of the fund. Not Applicable U.S. and Non-U.S. Private Equity and Venture Capital Investments 843,413 216,373 Approximately 3 Years Redemptions are not permitted during the life of the fund. Not Applicable Private Real Estate Partnerships U.S. and Non-U.S. Real Estate 170,718 172,230 Approximately 4 Years Redemptions are not permitted during the life of the fund. Not Applicable Equity Funds U.S. and Non-U.S. Equity Securities 115,661 Not Applicable Open Ended Minimum monthly None Other Funds U.S. and Non-U.S. Investments in Securities Other than Equity and Fixed Income 114 Not Applicable Open Ended Monthly None $2,754,874 $656,181 Total 24 / 2018 FINANCIAL REPORT University of Southern California Notes to Consolidated Fınancial Statements Note 6 (continued) The following table lists investments by major category for the year ended June 30, 2017 (in thousands): At June 30, 2017 Category of Investment Investment Strategy Distressed Obligation Partnerships U.S. and Non-U.S. Distressed Debt Securities Hedge Funds U.S. and Non-U.S. Investments in Relative Value, Event Driven, Long/Short and Directional Strategies Natural Resources Partnerships Fair Value Determined Using NAV Unfunded Commitments $25,405 Redemption Restrictions and Terms Remaining Life Redemption Terms $21,601 Approximately 2 Years Redemptions are not permitted during the life of the fund. Not Applicable 1,056,032 26,700 99.8% of NAV has an openended life and 0.2% of NAV will be liquidated on an undetermined basis. Ranges between bimonthly redemption with 75 days notice, monthly redemption with 90 days notice, quarterly redemption with up to 120 days notice, semiannual redemption with 60 to 90 days notice, annual redemption with up to 120 days notice, biannual redemption with 90 days notice and 5-year lockup with 90 days notice. 17% of NAV is locked-up for 3 months, 46% of NAV is locked-up for 1 year and 37% of NAV is locked-up for more than 1 year. U.S. and Non-U.S. Investments in Upstream, Midstream and Downstream Natural Resources Investments 447,091 228,951 Approximately 4 Years Redemptions are not permitted during the life of the fund. Not Applicable Private Capital Partnerships U.S. and Non-U.S. Private Equity and Venture Capital Investments 753,750 159,195 Approximately 3 Years Redemptions are not permitted during the life of the fund. Not Applicable Private Real Estate Partnerships U.S. and Non-U.S. Real Estate 154,342 85,781 Approximately 3 Years Redemptions are not permitted during the life of the fund. Not Applicable Equity Funds U.S. and Non-U.S. Equity Securities 110,737 Not Applicable Open Ended Minimum monthly None Other Funds U.S. and Non-U.S. Investments in Securities Other than Equity and Fixed Income 114 Not Applicable Open Ended Monthly None $2,547,471 $522,228 Total University of Southern California 2018 FINANCIAL REPORT / 25 Notes to Consolidated Fınancial Statements Note 7 Endowment: Endowment net assets are subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and only the income and realized gains be utilized for current and future needs. Long-term investment net assets (board-designated endowment funds) have been established from restricted contributions whose restrictions have been met and unrestricted contributions which have been designated by the Board of Trustees or management for the same purpose as endowment. The university also has a beneficial interest in the net income earned from assets which are held and managed by other trustees. Donor-restricted and board-designated endowment funds are summarized as follows for the year ended June 30, 2018 (in thousands): Pooled Non-pooled Total Board-Designated Endowment Funds Donor-Restricted Endowment Total $1,409,305 $3,933,331 $5,342,636 74,845 126,786 201,631 $1,484,150 $4,060,117 $5,544,267 Donor-restricted and board-designated endowment funds are summarized as follows for the year ended June 30, 2017 (in thousands): Pooled Non-pooled Total Board-Designated Endowment Funds Donor-Restricted Endowment Total $1,335,689 $3,603,416 $4,939,105 69,010 122,405 191,415 $1,404,699 $3,725,821 $5,130,520 Pooled investments represent donor-restricted and board-designated endowment funds which have been commingled in a unitized pool (unit value basis) for purposes of investment. At June 30, 2018 and 2017, the pool is comprised of cash and cash equivalents (0.63%) and (0.43%), equities (54.29%) and (53.89%), fixed income securities (12.06%) and (12.03%), alternative investments (29.94%) and (30.64%) and real estate and other investments (3.08%) and (3.01%), respectively. Access to or liquidation from the pool is on the basis of the market value per unit on the preceding monthly valuation date. The unit value at June 30, 2018 and 2017, was $676.51 and $647.73, respectively. The Board of Trustees has interpreted the Uniform Prudent Management of Institutional Funds Act (“UPMIFA”) as requiring the preservation of the original contribution as of the contribution date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the university classifies as donor-restricted funds (a) the original value of contributions donated to the endowment, (b) the original value of subsequent contributions to the endowment and (c) accumulations to the endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. In accordance with UPMIFA, the university considers various factors in making a determination to appropriate or accumulate endowment funds including: duration and preservation of the fund, economic conditions, effects of inflation or deflation, expected return on the funds and other economic resources of the university. Endowment net asset composition by type of funds as of June 30, 2018 (in thousands): Without Donor Restrictions Donor-restricted endowment funds With Donor Restrictions Total $4,060,117 $4,060,117 $5,544,267 Board-designated endowment funds $1,484,150 Total $1,484,150 $4,060,117 1,484,150 Without Donor Restrictions With Donor Restrictions Total $3,725,821 $3,725,821 $3,725,821 $5,130,520 Endowment net asset composition by type of funds as of June 30, 2017 (in thousands): Donor-restricted endowment funds Board-designated endowment funds $1,404,699 Total $1,404,699 26 / 2018 FINANCIAL REPORT University of Southern California 1,404,699 Notes to Consolidated Fınancial Statements Note 7 (continued) Changes in endowment net assets for the year ended June 30, 2018 (in thousands): Endowment net assets at July 1, 2017 Total investment return Contributions and transfers Appropriation of endowment assets for expenditure Endowment net assets at June 30, 2018 Without Donor Restrictions With Donor Restrictions Total $1,404,699 $3,725,821 $5,130,520 156,808 314,605 471,413 20,105 159,125 179,230 (97,462) (139,434) (236,896) $1,484,150 $4,060,117 $5,544,267 Without Donor Restrictions With Donor Restrictions Total $1,307,422 $3,301,292 $4,608,714 185,961 388,500 574,461 Changes in endowment net assets for the year ended June 30, 2017 (in thousands): Endowment net assets at July 1, 2016 Total investment return Contributions and transfers Appropriation of endowment assets for expenditure Endowment net assets at June 30, 2017 The portion of perpetual endowment funds that is required to be retained permanently either by explicit donor stipulation or by UPMIFA (in thousands): Restricted for faculty support Restricted for program support Total endowment assets with donor restrictions 172,279 175,265 (136,250) (227,920) $1,404,699 Endowments classified with donor restrictions are to be utilized for the following purposes: Restricted for scholarship support 2,986 (91,670) 2018 2017 $945,638 $872,922 955,824 896,990 2,158,655 1,955,909 $4,060,117 $3,725,821 From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the value of the initial and subsequent donor contribution amounts (deficit). When donorrestricted endowment fund deficits exist, they are classified as a reduction of donor-restricted net assets. Deficits of this nature exist in various donor-restricted endowment funds, which together have an original value of $26,978,000 and a current value of $26,743,000 with a deficiency of $235,000 and an original value of $53,815,000 and a current fair value of $52,066,000 and a deficiency of $1,749,000 as of June 30, 2018 and 2017, respectively. These deficits resulted from unfavorable market fluctuations that occurred shortly after the investment of newly established endowments and authorized appropriation that was deemed prudent. The university has adopted endowment investment and spending policies that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing $3,725,821 $5,130,520 power of endowment assets. Under these policies, the return objective for the endowment assets, measured over a full market cycle, shall be to maximize the return against a blended index, based on the endowment’s target allocation applied to the appropriate individual benchmarks. The university expects its endowment funds over time to provide an average rate of return of approximately 8% annually. Actual returns in any given year may vary from this amount. To achieve its long-term rate of return objectives, the university relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized gains) and current yield (interest and dividends). The university targets a diversified asset allocation that places greater emphasis on equity-based investments to achieve its long-term objectives within prudent risk constraints. The university utilizes a spending rule for its pooled endowment. The spending rule determines the endowment income and realized gains to be distributed currently for spending with the provision that any amounts remaining after the distribution be transferred and reinvested in the endowment pool as board-designated as endowment. For the 2018 fiscal year, the Board of Trustees approved current distribution of 100% of the prior year’s payout, within a minimum of 4% and a maximum of 6% of the average market value for the previous 12 calendar quarters. Under the provisions of the spending rule, $28.87 was distributed to each time-weighted unit for a total spending rule allocation of $233,765,000. Investment income amounting to $4.51 per time-weighted unit was earned, totaling $36,517,000, and $197,249,000 was appropriated for current operations from cumulative gains of pooled investments. Endowment pool earnings allocated for spending in fiscal year 2018 represent 4.38% of the market value of the endowment pool at June 30, 2018. University of Southern California 2018 FINANCIAL REPORT / 27 Notes to Consolidated Fınancial Statements Note 7 (continued) Note 10 For the 2017 fiscal year, the Board of Trustees approved current distribution of 104% of the prior year’s payout, within a minimum of 4% and a maximum of 6% of the average market value for the previous 12 calendar quarters. Under the provisions of the spending rule, $28.87 was distributed to each time-weighted unit for a total spending rule allocation of $224,725,000. Investment income amounting to $3.91 per time-weighted unit was earned, totaling $30,450,000 and $194,275,000 was appropriated for current operations from cumulative gains of pooled investments. Endowment pool earnings allocated for spending in fiscal year 2017 represent 4.55% of the market value of the endowment pool at June 30, 2017. Leases: The university is the lessee of various equipment and space under noncancelable operating and capital leases. Operating lease rental expense for the years ended June 30, 2018 and 2017, was approximately $37,539,000 and $34,154,000, respectively. Space leases contain customary escalation clauses, which are included in annual aggregate minimum rentals. Future aggregate minimum rental payments as of June 30, 2018, under operating and capital leases are as follows (in thousands): Future minimum rental payments: Operating Capital 2019 $42,735 $1,600 Note 8 2020 45,366 1,642 Property, Plant and Equipment: 2021 43,031 1,685 2022 41,378 1,730 2023 33,840 1,775 Thereafter 201,371 666,293 Property, plant and equipment consisted of the following at June 30 (in thousands): 2018 2017 Land and improvements $196,738 $196,890 Buildings and improvements 5,170,770 4,659,505 65,822 65,822 Buildings under capital leases Equipment 679,578 655,391 Library books and collections 399,399 378,402 Construction-in-progress Less: Accumulated depreciation Total 250,575 415,925 6,762,882 6,371,935 2,588,792 2,362,339 $4,174,090 $4,009,596 Note 9 Student Financial Aid: Financial aid is awarded to students based on need and merit. Financial aid does not include payments made to students for services rendered to the university. Financial aid for the year ended June 30, 2018, consists of the following (in thousands): Undergraduate Graduate Total $302,203 $166,884 $469,087 Endowed scholarships 28,938 15,980 44,918 External financial aid 27,132 14,984 42,116 $358,273 $197,848 $556,121 Institutional scholarships Total Financial aid for the year ended June 30, 2017, consists of the following (in thousands): Undergraduate Graduate Total $278,894 $154,894 $433,788 Endowed scholarships 24,177 13,428 37,605 External financial aid 25,176 13,981 39,157 $328,247 $182,303 $510,550 Institutional scholarships Total 28 / 2018 FINANCIAL REPORT University of Southern California 407,721 Total 674,725 (600,503 ) Less: Interest on capital leases $407,721 $74,222 The university entered into a lease agreement with the Los Angeles Memorial Coliseum Commission (LAMCC) to assume the operations of the Los Angeles Memorial Coliseum and Los Angeles Memorial Sports Arena. The lease agreement with the LAMCC expires in 2033, or in 2054, if all options are exercised, at which time a second lease agreement with the California Science Center (CSC), an institution of the state of California, commences. The lease with the CSC expires in 2111, assuming all options are exercised. Under the terms of both lease agreements, the university is required to make certain capital improvements. The present value of the future minimum lease payments as of June 30, 2018 and 2017, is $74,222,000 and $72,606,000, respectively. Notes to Consolidated Fınancial Statements Note 11 Bonds and notes payable (in thousands): Interest % Maturity 2018 2017 5.25 2025 $82,305 $82,305 California Educational Facilities Authority Revenue Bonds and Notes: Series 2009C Premium Series 2012A 4,271 41,595 5.00 2024 41,595 5,401 6,415 5.00 2026 42,960 42,960 7,232 8,216 4,585 4,585 Premium Series 2015A 3,661 Premium University of Southern California Bonds: Series 1998 Taxable 6.26 2019 Discount Series 2011 Taxable 5.25 2112 300,000 3.028 2040 722,580 3.841 2048 402,320 Discount Series 2016 Taxable (2,505) Discount Series 2017 Taxable (7) (5) (3,395) Discount 300,000 (2,532) 722,580 (3,554) 402,320 (1,799) (1,740) California Infrastructure Revenue Bonds USC (USC – Soto Street Health Sciences): Series 2010 (Soto) 3.25-5.00 2018-2032 Premium Notes Payable 5.00 2018-2020 Less: current portion of long-term debt Total 28,220 29,620 1,674 1,804 17,500 17,500 1,652,388 1,656,279 6,055 1,400 $1,646,333 $1,654,879 Principal payment requirements relating to bonds and notes payable, after giving effect to refunding, for the next five fiscal years are approximately: 2019 $6,055,000; 2020 $19,040,000; 2021 $1,620,000; 2022 $1,700,000; 2023 $1,755,000, thereafter $1,611,895,000. Interest payments for fiscal year 2018 and 2017 were $63,405,000 and $56,759,000, respectively. The university has a revolving line of credit with a bank with a maturity date of November 30, 2020. The credit agreement was amended on April 12, 2017, to increase the revolving line of credit to $500,000,000, with all other terms and conditions, including the applicable rate and maturity, remaining substantially the same. The line of credit accrues interest based on LIBOR and contains a fee on the unused portion of the line of credit. During fiscal years ending June 30, 2018 and 2017, the university did not draw down on the line of credit. The line of credit contains certain restrictive covenants which include a minimum credit rating of “A” and “A2” from Standard and Poor’s and Moody’s, respectively, as well as a minimum total net assets of $5,500,000,000. USC was in compliance with these covenants during fiscal years ending June 30, 2018 and 2017. University of Southern California 2018 FINANCIAL REPORT / 29 Notes to Consolidated Fınancial Statements Note 12 Retirement Benefits: Retirement benefits for eligible university employees are provided through the Teachers Insurance and Annuity Association, The Vanguard Group, AIG Sun America, Fidelity Investments and Prudential Financial. Under these defined contribution plans, the university and plan participants make contributions to purchase individual, fixed or variable annuities equivalent to retirement benefits earned or to participate in a variety of mutual funds. Under the USC Retirement Savings Program, the university makes a 5% non-elective contribution to all eligible employees and also matches dollar for dollar the first 5% of the employees’ contributions. Newly hired employees on or after January 1, 2012, will have the university non-elective contribution subject to a four year vesting schedule. Benefits commence upon termination or retirement and preretirement survivor death benefits are also provided. Charges to operating activities expenses for the university’s share of costs were approximately $169,505,000 and $155,398,000 during the years ended June 30, 2018 and 2017, respectively. Retirement benefits for employees of USC Verdugo Hills Hospital and University Physician Associates are provided by a defined contribution 401(k) plan through Fidelity Investments. Until August 2011, the Keck and Norris hospital employees covered under a collective bargaining agreement with California Nurses Association were also covered under this 401(k) plan. Until January 2017, the National Union of Healthcare Workers (“NUHW”) employees at Keck and Norris hospitals were also covered under this 401(k) plan. Under the 401(k) defined contribution plan, participants make contributions to purchase a variety of mutual funds. Effective January 2018, the university contribution to the 401(k) plan is made on a paycheck-by-paycheck basis. Prior to this, the university made its contribution in a lump sum following the end of the calendar year and matched 100% of the participants’ contributions up to 4% of eligible earnings, providing the participant was employed on the last day of the calendar year. In addition, the university made a 1% retiree medical benefit contribution to all NUHW participants who were both employed on the last day of the calendar year and worked 1,500 hours in that calendar year. The university contribution is subject to a five year vesting schedule, although previously credited years prior to the Tenet and Verdugo acquisitions have been carried over. Benefits commence at age 59 1/2, termination of employment or retirement. Pre-retirement survivor death benefits are also provided. Charges to operating activities expenses for the university’s share of costs were approximately $33,000 and $1,701,000 during the years ended June 30, 2018 and 2017, respectively. 30 / 2018 FINANCIAL REPORT University of Southern California Retirement benefits for non exempt university employees are provided through a noncontributory defined benefit pension plan, the USC Support Staff Retirement Plan (“Plan”). The following table sets forth the Plan’s funded status at June 30 (in thousands): Changes in Projected Benefit Obligation Benefit obligation at end of prior year 2018 2017 $251,857 $272,262 Interest cost 9,862 10,155 Actuarial gain (12,939) (13,584 ) Benefits paid (19,243) (16,976 ) $229,537 $251,857 $190,974 $173,003 Change in Plan Assets Fair value of plan assets at end of prior year Actual return on plan assets Employer contribution Benefits paid 16,110 24,947 21,000 10,000 (19,243) (16,976 ) $208,841 $190,974 Accumulated benefit obligation at end of year $229,537 $251,857 Projected benefit obligation at end of year (229,537) (251,857 ) Fair value of plan assets at end of year 208,840 190,974 ($20,697) ($60,883 ) Reconciliation of Funded Status Funded status Components of Net Periodic Benefit Cost Interest cost $9,862 Expected return on plan assets (11,513) Amortization of net loss Total benefit cost $10,155 (11,762 ) 5,898 8,965 $4,247 $7,358 Amounts recognized in the Statement of Financial Position Accrued liabilities ($20,697) ($60,883 ) Amounts not yet recognized as components of Net Periodic Benefit Cost Net loss $61,384 $84,818 Changes in the net reduction to Without Donor Restrictions Net gain Amortization of net loss Total benefit cost ($17,535) ($26,769 ) (5,898) (8,965 ) ($23,433) ($35,734 ) Notes to Consolidated Fınancial Statements Note 12 (continued) Plan Assets The estimated net loss/(gain) and prior service cost for the Plan that will be recognized as components of net periodic benefit cost over the next fiscal year are $3,922,000 and $0, respectively. In managing the Plan assets, the university’s objective is to be a responsible fiduciary while minimizing financial risk. Plan assets include a diversified mix of fixed income securities and equity securities across a range of sectors and levels of capitalization to maximize the long−term return for a prudent level of risk. In addition to producing a reasonable return, the investment strategy seeks to minimize the volatility in the university’s expense and cash flow. The target allocation for pension benefit plan assets is 50% equity securities and 50% fixed income securities. The Plan was amended to freeze benefit accruals for all remaining active union participants, effective December 23, 2009, and to provide full vesting for those participants. No special accounting for curtailments, settlements or termination benefits was required during the years ended June 30, 2018 and 2017. As described in Note 1, the university uses a hierarchy to report invested assets, including the invested assets of the Plan. Following is a description of the valuation methodologies used for assets measured at fair value. Weighted-average assumptions used to determine net periodic benefit cost for year ended June 30: 2018 2017 Discount rate 4.00% 3.80% Expected return on plan assets 6.20% 7.00% Rate of compensation increase N/A N/A Weighted-average assumption used to determine net year-end benefit obligations at June 30: Discount rate Rate of compensation increase 2018 2017 4.40% 4.00% N/A N/A Fair Value The Plan’s interest in collective trusts is valued based on the net asset value information reported by the investment advisor. The fund is valued at the normal close of trading on the New York Stock Exchange every day the exchange is open (a “Business Day”). Equity securities are valued at the official closing price of, or the last reported sales price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or at the last available bid price. In cases where equity securities are traded on more than one exchange, the securities are valued on the exchange or market determined to be the most representative market, which may be either a securities exchange or the over-the-counter market. Short-term investments are carried at fair value. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. University of Southern California 2018 FINANCIAL REPORT / 31 Notes to Consolidated Fınancial Statements Note 12 (continued) At June 30, 2018, a summary of fair value measurements by level for Plan investments measured at fair value on a recurring basis is as follows (in thousands): Level I Level II Level III NAV Total Collective Trust Funds: Short-term investment fund $3,647 Equity securities Fixed income securities Total $3,647 99,114 99,114 106,080 106,080 $208,841 $208,841 At June 30, 2017, a summary of fair value measurements by level for investments measured at fair value on a recurring basis is as follows (in thousands): Level I Level II Level III NAV Total Collective Trust Funds: Short-term investment fund $2,062 $2,062 Equity securities 145,125 145,125 Fixed income securities Total 43,787 43,787 $190,974 $190,974 Allocation of Assets The year-end asset allocation, which approximates the weighted-average allocation for the Plan assets as of June 30 and in comparison to target percentages for each asset category, is as follows: Asset Category Actual at June 30, 2018 Short-term investment fund Equity securities Fixed income securities Total Target at June 30, 2018 Actual at June 30, 2017 Target at June 30, 2017 1.7% 0.0% 1.1% 0.0% 47.5% 50.0% 76.0% 75.0% 50.8% 50.0% 22.9% 25.0% 100.0% 100.0% 100.0% 100.0% The portfolio is evaluated annually or when the actual allocation percentages are plus or minus 2% of the stated target allocation percentages. Changes in policy may be indicated as a result of changing market conditions or anticipated changes in the pension plan’s needs. Prohibited transactions include investment transactions prohibited by the Employee Retirement Income Security Act of 1974 and speculative investments including commodities or unregistered stock without specific prior approval by the university’s Investment Committee. Estimated Future Benefit Payments 2021 12,317 Contributions 2022 12,849 No contribution to the Plan is required to be made during the fiscal year ending June 30, 2019. At this time, it is anticipated that the university will make discretionary contributions to the pension plan during the next fiscal year, although the total amount of such contributions has not yet been determined. 32 / 2018 FINANCIAL REPORT University of Southern California The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): Fiscal Year Ending June 30 2019 $11,207 2020 11,740 2023 13,249 2024-2028 69,424 Notes to Consolidated Fınancial Statements Note 13 Net Assets: The university’s net assets as of June 30, 2018, includes the following (in thousands): Year Ended June 30, 2018 Nature of Specific Net Assets Designated Without Donor Restrictions $1,252,267 Donor-restricted Pledges Unexpended endowment income Donor-restricted endowment funds Debt service funds Invested in plant Total Total Net Assets $1,252,267 $139,755 139,755 570,186 570,186 295,792 Annuity and living trusts Board-designated endowment funds With Donor Restrictions 295,792 168,332 168,332 4,060,117 4,060,117 1,484,150 1,484,150 121,413 121,413 1,177,519 1,177,519 $4,331,141 $4,938,390 $9,269,531 The university’s net assets as of June 30, 2017, includes the following (in thousands): Year Ended June 30, 2017 Nature of Specific Net Assets Designated Without Donor Restrictions $1,223,092 Donor-restricted Pledges Unexpended endowment income Donor-restricted endowment funds Debt service funds Invested in plant Total Total Net Assets $1,223,092 $125,226 125,226 628,633 628,633 266,144 Annuity and living trusts Board-designated endowment funds With Donor Restrictions 266,144 149,323 149,323 3,725,821 3,725,821 1,404,699 1,404,699 106,380 106,380 1,150,900 1,150,900 $4,151,215 $4,629,003 $8,780,218 University of Southern California 2018 FINANCIAL REPORT / 33 Notes to Consolidated Fınancial Statements Note 14 Functional Expenses: Expenses are presented below by functional classification in accordance with the overall service mission of the university. Each functional classification displays all expenses related to the underlying operations by natural classification. Depreciation expense is allocated based on square footage occupancy. Interest expense on external debt is allocated to the functional categories which have benefited from the proceeds of the external debt. Plant operations and maintenance represents space related costs which are allocated to the functional categories directly and/or based on the square footage occupancy. For the year ended June 30, 2018, functional expense consists of the following (in thousands): Academic, Health Care and Student Services Support Services Fundraising Activities Year Ended June 30, 2018 Compensation $1,850,553 $321,320 $35,970 $2,207,843 Fringe benefits 480,922 107,207 12,381 600,510 1,086,780 390,897 14,336 1,492,013 Cost of goods sold 87,895 49,188 Travel 51,256 12,041 Operating expenses Settlement 137,083 842 215,000 64,139 215,000 Allocations: Depreciation Interest Plant operations and maintenance Total 180,797 78,514 22,332 43,393 170,212 (173,139) $3,930,747 2,151 261,462 65,725 2,927 $1,044,421 $68,607 $5,043,775 Academic, Health Care and Student Services Support Services Fundraising Activities Year Ended June 30, 2017 Compensation $1,698,766 $309,213 $32,920 $2,040,899 Fringe benefits 388,758 92,508 10,129 491,395 Operating expenses 964,585 334,092 14,954 1,313,631 Cost of goods sold 63,389 49,436 Travel 47,999 11,314 810 60,123 175,132 70,106 173 245,411 17,448 50,561 For the year ended June 30, 2017, functional expense consists of the following (in thousands): 112,825 Allocations: Depreciation Interest Plant operations and maintenance Total 34 / 2018 FINANCIAL REPORT University of Southern California 162,641 $3,518,718 (162,894) $754,336 68,009 253 $59,239 $4,332,293 Notes to Consolidated Fınancial Statements Note 15 Note 16 Commitments and Contingencies Grants and Contracts: Contractual commitments for educational plant amounted to approximately $132,631,000 and $142,456,000 at June 30, 2018 and 2017, respectively. It is expected that the resources to satisfy these commitments will be provided from certain unexpended plant net assets, anticipated contributions and/or debt proceeds. Executed contracts, grants, subcontracts and cooperative agreements for future sponsored research activity which are not reflected in the consolidated financial statements at June 30 are summarized as follows (in thousands): During the year ended June 30, 2007, the university entered into an agreement with the County of Los Angeles to provide professional services at Los Angeles County+USC Medical Center. Under the terms of the agreement, the contract automatically renews on an annual basis unless either party gives four years’ notice of the termination. To date, no such notice has been provided by either party. The university is contingently liable as guarantor on certain obligations relating to equipment loans, student and parent loans and various campus organizations. In the normal course of its activities, the university has been a party in various legal actions. Historically, the university has not experienced material losses from such actions. In the opinion of university management, after consultation with legal counsel, the liability, if any, for the aforementioned matters will not have a material effect on the university’s financial position. During the year ended June 30, 2018, the university was named in lawsuits in state and federal court in connection with alleged misconduct by a physician who was previously employed by the university and practiced at the university student health center; this individual was alleged to have engaged in inappropriate conduct and made inappropriate statements to patients. The university has been named in both federal and state court civil lawsuits. On October 9, 2018, the university and the federal plaintiffs reached an agreement in principle for a federal class action settlement of $215 million, plus attorneys’ fees not to exceed $25 million. The settlement will ultimately need to be approved by the court. For the year ended June 30, 2018, the university has recorded a liability for the federal class action settlement of $215 million. While the university expects that a significant portion of the settlement will be covered by insurance, no insurance reimbursements for settlements have been received to date. Amounts of future insurance reimbursements are unknown as of June 30, 2018, and as a result no insurance recovery accruals have been recorded in the 2018 financial statements. The outcome of the state court lawsuits is unknown at June 30, 2018, and therefore, no accruals for future costs have been recorded in the 2018 consolidated financial statements. It is possible that additional individuals may file similar actions. The outcome of the pending and potential litigation is unknown as of June 30, 2018, but the university recognizes that the ultimate outcome may have a material impact on the university’s financial position. Current sponsored awards Executed grants and contracts for future periods Total 2018 2017 $764,272 $756,757 1,192,476 800,997 $1,956,748 $1,557,754 Note 17 Related parties Members of the Board of Trustees and senior management may, from time to time, be associated, either directly or indirectly, with companies doing business with the university. For senior management, the university requires annual disclosure of significant financial interest in entities doing business with the university. These annual disclosures cover both senior management and their immediate family members. When such relationships exist, measures are taken to appropriately manage the actual or perceived conflict in the best interests of the university. The university has a written conflict of interest policy that requires, among other things, that no member of the Board of Trustees can participate in any decision in which he or she or an immediate family member has a material financial interest. Each trustee is required to certify compliance with the conflict of interest policy on an annual basis and indicate whether the university does business with an entity in which a trustee has a material financial interest. When such relationships exist, measures are taken to mitigate any actual or perceived conflict, including requiring the recusal of the conflicted trustee and that such transactions be conducted at arm’s length, for good and sufficient consideration, based on terms that are fair and reasonable to and for the benefit of the university, and in accordance with applicable conflict of interest laws. Note 18 Subsequent events The university has performed an evaluation of subsequent events through November 21, 2018, which is the date the financial statements were issued. University of Southern California 2018 FINANCIAL REPORT / 35 Tbispage intentionally left blank 2018?2019 Budget 2019 Summary of Budgeted Operating Revenues and Expenses 2018-19 Budget / in thousands Undesignated Budget Education and General Health Care Services 2017-18 Budget 2018-19 Budget Percent Change $1,948,137 $2,071,740 6.3% 2017-18 Budget 2018-19 Budget Percent Change Revenues Tuition and Fees Less Student Aid (462,386) 4.1% ($52) Net Tuition and Fees 1,485,751 1,590,259 7.0% (52) 92,828 95,668 3.1% Endowment Income Investment Income Gifts (481,481) 3,500 9,600 +100.0% 40,836 47,085 15.3% 3.9% $145 149 2.8% Contracts and Grants - Direct Recovery of Indirect Costs: Contracts and Grants 136,906 142,213 Endowments/Gifts 22,051 23,491 Auxiliary Enterprises 386,285 384,237 Sales and Service and Other Sources Total Revenues 6.5% (0.5%) 181,913 193,414 6.3% 1,790,941 1,917,989 7.1% $2,350,070 $2,485,967 5.8% $1,791,086 $1,918,086 7.1% $443,275 $469,429 5.9% $269,775 $295,363 9.5% 648,910 689,905 6.3% 531,542 589,775 11.0% Expenses Compensation: Faculty Salaries Other Salaries and Wages Employee Benefits 297,800 315,258 5.9% 212,687 243,332 14.4% Total Compensation 1,389,985 1,474,592 6.1% 1,014,004 1,128,470 11.3% Current Expense 576,287 625,083 8.5% 643,632 617,677 Capital Financing 126,437 123,460 (2.4%) 15,134 21,362 41.2% 85,062 87,864 3.3% 63,685 93,317 46.5% Equipment/Library 33,483 33,063 (1.3%) 4,752 4,252 (10.5%) Utilities/Telephone 62,656 67,324 7.5% 9,724 11,522 18.5% Off-campus Facilities 20,964 20,185 (3.7%) 3,241 3,922 21.0% Travel 29,538 29,722 0.6% Rentals and Leases 25,658 24,674 (3.8%) $2,350,070 $2,485,967 Professional Services Total Expenses 36 / 2018 FINANCIAL REPORT University of Southern California 5.8% (4.0%) 2,617 3,374 28.9% 34,297 34,190 (0.3%) $1,791,086 $1,918,086 7.1% Designated Budget Total Budget 2017-18 Budget 2018-19 Budget Percent Change 2017-18 Budget 2018-19 Budget Percent Change $1,948,137 $2,071,740 6.3% ($87,064) ($91,914) 5.6% (549,450) (573,447) (87,064) (91,914) 5.6% 1,398,687 1,498,293 4.4% 7.1% 69,090 71,080 2.9% 161,918 166,748 3.0% 3,645 9,749 +100.0% 302,272 345,247 14.2% 343,108 392,332 14.3% 500,171 540,404 8.0% 500,171 540,404 8.0% 136,906 142,213 3.9% 22,051 23,491 386,285 384,237 6.5% (0.5%) 1,972,854 2,111,403 7.0% $4,925,625 $5,268,870 7.0% $784,469 $864,817 10.2% $103,430 $101,554 (1.8%) $816,480 $866,346 6.1% 214,389 225,620 5.2% 1,394,841 1,505,300 7.9% 86,885 88,170 1.5% 597,372 646,760 8.3% 404,704 415,344 2.6% 2,808,693 3,018,406 7.5% 263,987 327,230 24.0% 1,483,906 1,569,990 5.8% 750 760 1.3% 142,321 145,582 2.3% 35,558 36,616 3.0% 184,305 217,797 18.2% 17,750 18,511 4.3% 55,985 55,826 (0.3%) 72,380 78,846 8.9% 5.5% 24,452 27,243 11.4% 48,657 51,350 32,414 32,607 0.6% 64,569 65,703 1.8% 4,854 6,506 34.0% 64,809 65,370 0.9% $784,469 $864,817 10.2% $4,925,625 $5,268,870 7.0% University of Southern California 2018 FINANCIAL REPORT / 37 2019 Colleges, Schools, Centers and Institutes Individual Revenue Center Summary / 2018-19 Budget / in thousands USC Annenberg School for Communication and Journalism USC School of Architecture USC Bovard College Undesignated Designated Undesignated Designated Undesignated Direct $67,199 $15,063 $20,881 $2,133 Center 85,380 15,063 27,317 2,133 UG Student Aid Fund (15,019) Designated USC School of Cinematic Arts Undesignated Designated $31,869 $59,520 $13,332 33,428 79,969 13,332 Revenues Facilities Improvement Fund Indirect Participation Academic Initiatives (5,001) (748) (16,971) (3,162) (1,435) (811) (3,478) (5,220) (2,952) (3,142) (7,166) (6,916) (2,952) (3,142) (8,136) 150 365 1,546 508 Provost’s Initiatives Graduate Programs Total Revenues 97 $61,979 $15,063 $17,929 $2,133 $28,727 $52,354 $13,332 $46,741 $15,063 $12,360 $2,133 $13,332 Expenses Direct Indirect Allocated Central Costs Facilities Based Total Expenses $23,692 $34,294 15,238 5,569 5,035 18,060 14,103 4,779 5,002 15,281 1,135 790 33 2,779 $28,727 $52,354 $61,979 $15,063 USC Leonard Davis School of Gerontology $17,929 $2,133 USC Dornsife College of Letters, Arts and Sciences USC School of Dramatic Arts $13,332 USC Suzanne Dworak-Peck School of Social Work Undesignated Designated Undesignated Designated Undesignated Designated Undesignated Designated Direct $22,496 $10,695 $333,888 $112,743 $13,572 $836 $153,072 $8,071 Center 26,142 10,695 495,057 112,743 20,003 836 158,031 8,071 UG Student Aid Fund (2,687) Revenues Facilities Improvement Fund (141,345) (5,603) (88) (959) (19,824) (828) (4,871) (85) (7,942) (1,385) (8,423) Participation (2,417) (47,829) (1,906) (9,061) Academic Initiatives 1,000 19,475 406 212 115 1,332 20,200 Indirect Provost’s Initiatives Graduate Programs Total Revenues 113 525 $22,411 $10,695 $325,946 $112,743 $12,187 $836 $144,649 $8,071 $17,339 $10,695 $205,634 $112,743 $8,310 $836 $131,776 $8,071 Expenses Direct Indirect Allocated Central Costs Facilities Based Total Expenses 5,072 120,312 3,877 12,873 4,141 103,319 2,983 12,249 931 16,993 894 $22,411 38 / 2018 FINANCIAL REPORT University of Southern California $10,695 $325,946 $112,743 $12,187 624 $836 $144,649 $8,071 USC Gould School of Law Graduate Programs USC Institute for Creative Technologies USC Jimmy Iovine and Andre Young Academy Undesignated Designated Undesignated Designated Undesignated Designated Undesignated Designated Direct $53,404 $6,569 $47,129 $251 $4,716 $30,022 $11,346 $468 Center 57,895 6,569 47,129 251 4,716 30,022 13,046 468 Revenues UG Student Aid Fund Facilities Improvement Fund Indirect (1,032) (1,377) (3,459) (323) (1,526) Participation (6,526) Academic Initiatives 2,500 Provost’s Initiatives 2,500 (40,906) 17,000 Graduate Programs Total Revenues 134 (711) (472) (711) 300 (57,906) 306 $51,878 $6,569 $6,223 $251 $4,850 $30,022 $10,635 $468 $38,791 $6,569 $6,223 $251 $3,390 $30,022 $10,066 $468 Expenses Direct Indirect Allocated Central Costs Facilities Based Total Expenses 13,087 1,460 569 11,771 1,460 538 1,316 $51,878 31 $6,569 USC Glorya Kaufman School of Dance $6,223 $251 USC Marshall School of Business $4,850 $30,022 USC Sol Price School of Public Policy $10,635 $468 USC Roski School of Art and Design Undesignated Designated Undesignated Designated Undesignated Designated Undesignated Designated Direct $6,255 $44 $217,248 $23,913 $59,078 $27,549 $12,527 $363 Center 9,473 44 276,641 23,913 67,769 27,549 17,846 363 Revenues UG Student Aid Fund Facilities Improvement Fund Indirect Participation (2,835) (47,022) (5,846) (383) (12,371) (2,845) (693) (873) (25,323) (4,947) (1,541) (888) (26,536) (5,981) (1,581) Academic Initiatives Provost’s Initiatives 50 15 40 265 Graduate Programs Total Revenues (4,626) 1,213 719 $5,382 $44 $191,925 $23,913 $54,131 $27,549 $10,986 $363 $4,790 $44 $142,056 $23,913 $41,706 $27,549 $8,041 $363 Expenses Direct Indirect Allocated Central Costs Facilities Based Total Expenses 592 49,869 12,425 2,945 579 47,186 11,538 2,533 13 2,683 887 $5,382 $44 $191,925 $23,913 $54,131 412 $27,549 $10,986 $363 University of Southern California 2018 FINANCIAL REPORT / 39 2019 Colleges, Schools, Centers and Institutes Individual Revenue Center Summary / 2018-19 Budget / in thousands USC Rossier School of Education USC Thornton School of Music USC Viterbi School of Engineering Academic Programs USC Viterbi School of Engineering Information Sciences Institute Undesignated Designated Undesignated Designated Undesignated Designated Undesignated Designated Direct $72,519 $18,295 $34,331 $1,643 $202,098 $93,210 $8,276 $89,145 Center 75,621 18,295 47,024 1,643 240,795 93,210 8,276 89,145 Revenues UG Student Aid Fund Facilities Improvement Fund Indirect Participation (534) (10,722) (27,609) (11,088) (2,568) (1,971) (3,893) (896) 1,890 994 (5,203) (4,436) (24,377) (870) 3,500 7,000 564 Academic Initiatives Provost’s Initiatives Graduate Programs Total Revenues 1,310 40 19,267 1,300 $68,626 $18,295 $33,435 $1,643 $203,988 $93,210 $9,270 $89,145 $58,147 $18,295 $24,064 $1,643 $144,950 $93,210 $5,634 $89,145 Expenses Direct Indirect Allocated Central Costs Facilities Based Total Expenses 10,479 9,371 59,038 3,636 9,738 8,021 49,800 3,636 741 1,350 9,238 $68,626 $18,295 Total Colleges, Schools, Centers and Institutes Undesignated Designated Direct $1,431,424 $454,345 Center 1,791,558 454,345 UG Student Aid Fund (289,065) Revenues Facilities Improvement Fund Indirect Participation Academic Initiatives (71,069) (113,913) (159,940) 52,350 Provost’s Initiatives 3,317 Graduate Programs (9,640) Total Revenues $1,317,511 $454,345 $968,004 $454,345 Expenses Direct Indirect Allocated Central Costs Facilities Based Total Expenses 349,507 308,657 40,850 $1,317,511 40 / 2018 FINANCIAL REPORT University of Southern California $454,345 $33,435 $1,643 $203,988 $93,210 $9,270 $89,145 2019 Health Sciences Schools and Health Care Services Individual Revenue Center Summary / 2018-19 Budget / in thousands Keck School of Medicine of USC Herman Ostrow School of Dentistry of USC USC School of Pharmacy Total Health Sciences Schools Undesignated Designated Undesignated Designated Undesignated Designated Undesignated Designated Direct $231,529 $296,411 $128,417 $19,693 $92,497 $10,089 $452,443 $326,193 Center 239,410 296,411 137,380 19,693 95,409 10,089 472,199 326,193 Revenues UG Student Aid Fund Facilities Improvement Fund Indirect (3,389) (3,138) (4,492) 7,056 Participation (15,083) Academic Initiatives 16,000 (6,904) (377) (5,825) (2,535) (12,852) (10,678) (2,816) (6,438) (12,179) (4,816) (32,078) 16,000 Provost’s Initiatives Graduate Programs Total Revenues 6,139 1,501 9,640 2,000 $238,585 $296,411 $117,739 $19,693 $89,681 $10,089 $446,005 $326,193 $162,146 $296,411 $88,283 $19,693 $75,482 $10,089 $325,911 $326,193 Expenses Direct Indirect Allocated Central Costs Facilities Based Total Expenses 76,439 29,456 14,199 120,094 60,318 24,124 12,114 96,556 16,121 5,332 2,085 $238,585 $296,411 $117,739 Keck Medicine of USC Undesignated Designated $19,693 Senior Care Undesignated Designated $89,681 23,538 $10,089 $446,005 $326,193 Total Health Care Services Undesignated Designated Revenues Direct $1,915,501 $2,585 $1,918,086 Center 1,915,501 2,585 1,918,086 $1,915,501 $2,585 $1,918,086 $1,907,223 $2,585 $1,909,808 UG Student Aid Fund Facilities Improvement Fund Indirect Participation Academic Initiatives Provost’s Initiatives Graduate Programs Total Revenues Expenses Direct Indirect 8,278 8,278 Allocated Central Costs 5,565 5,565 Facilities Based 2,713 Total Expenses $1,915,501 2,713 $2,585 $1,918,086 University of Southern California 2018 FINANCIAL REPORT / 41 2019 Auxiliaries and Athletics Individual Revenue Center Summary / 2018-19 Budget / in thousands Animal Resources Undesignated Designated Bookstores Undesignated Designated Los Angeles Memorial Coliseum Undesignated Designated Hospitality Undesignated Designated Revenues Direct $70 $30,156 $19,040 $57,461 Center 70 30,156 19,040 57,461 UG Student Aid Fund Facilities Improvement Fund Indirect 50 Participation Academic Initiatives Provost’s Initiatives 50 Graduate Programs Total Revenues $70 $30,156 $19,040 $57,511 $27,415 $19,040 $53,190 Expenses Direct Indirect ($2,491) 2,561 2,741 Allocated Central Costs 1,056 1,742 1,939 Facilities Based 1,505 999 2,382 Total Expenses $70 $30,156 Housing Undesignated Designated 4,321 $19,040 Intercollegiate Athletics $57,511 USC Hotel Undesignated Designated Undesignated Designated USC Student Health Undesignated Revenues Direct $89,356 $88,971 $11,498 $15,729 $77,648 Center 89,356 88,971 11,498 15,729 77,648 $89,356 $88,971 $11,498 $15,729 $77,648 $64,600 $73,948 $11,498 $15,075 $72,917 24,756 15,023 654 4,731 18,633 11,437 639 3,912 6,123 3,586 15 819 $89,356 $88,971 $15,729 $77,648 UG Student Aid Fund Facilities Improvement Fund Indirect Participation Academic Initiatives Provost’s Initiatives Graduate Programs Total Revenues Expenses Direct Indirect Allocated Central Costs Facilities Based Total Expenses 42 / 2018 FINANCIAL REPORT University of Southern California $11,498 Designated Transportation Undesignated Designated USC Radio Total Auxiliaries and Athletics USC Village Undesignated Designated Undesignated Designated Undesignated Designated Revenues Direct $25,085 $14,091 $1,443 $6,790 $424,397 $12,941 Center 25,085 14,091 1,443 6,790 424,397 12,941 UG Student Aid Fund Facilities Improvement Fund Indirect 50 Participation Academic Initiatives 50 Provost’s Initiatives Graduate Programs Total Revenues $25,085 $14,091 $1,443 $6,790 $424,447 $12,941 $13,497 $12,973 $1,443 $6,242 $356,406 $12,941 11,588 1,118 548 68,041 Allocated Central Costs 8,987 1,118 548 Facilities Based 2,601 Expenses Direct Indirect Total Expenses $25,085 50,011 18,030 $14,091 $1,443 $6,790 $424,447 $12,941 University of Southern California 2018 FINANCIAL REPORT / 43 2019 Classifıcation by Center 2018-19 Budget / in thousands Colleges, Schools, Centers and Institutes Health Sciences Schools Health Care Services Undesignated Designated Undesignated Designated Undesignated Direct $1,431,424 $454,345 $452,443 $326,193 $1,918,086 Center 1,791,558 454,345 472,199 326,193 1,918,086 UG Student Aid Fund (289,065) Designated Revenues Facilities Improvement Fund Indirect Participation (6,904) (71,069) (12,852) (113,913) (6,438) (159,940) (32,078) Academic Initiatives 52,350 16,000 Provost’s Initiatives 3,317 Graduate Programs Total Revenues (9,640) 9,640 $1,317,511 $454,345 $446,005 $326,193 $1,918,086 $968,004 $454,345 $325,911 $326,193 $1,909,808 Expenses Direct Indirect Allocated Central Costs Facilities Based Total Expenses 349,507 120,094 8,278 308,657 96,556 5,565 40,850 23,538 $1,317,511 $454,345 Auxiliaries and Athletics $446,005 2,713 $326,193 Total Revenue Centers $1,918,086 Administrative Centers Undesignated Designated Undesignated Designated Undesignated Designated Direct $424,397 $12,941 $4,226,350 $793,479 $151,130 $71,338 Center 424,397 12,941 4,606,240 793,479 Revenues UG Student Aid Fund Facilities Improvement Fund Indirect 50 (295,969) 295,969 (83,921) 83,921 71,338 (120,301) (192,018) Participation 68,350 Academic Initiatives Provost’s Initiatives (228,760) 3,367 50 Graduate Programs Total Revenues $424,447 $12,941 $4,106,049 $793,479 $151,130 $71,338 $356,406 $12,941 $3,560,129 $793,479 $697,050 $71,338 Expenses Direct Indirect 68,041 545,920 (545,920) Allocated Central Costs 50,011 460,789 (460,789) Facilities Based 18,030 85,131 Total Expenses 44 / 2018 FINANCIAL REPORT University of Southern California $424,447 $12,941 $4,106,049 (85,131) $793,479 $151,130 $71,338 Provost Funding Undesignated Total University Designated Undesignated Designated Grand Total Revenues Direct $26,573 $4,404,053 $864,817 $5,268,870 Center 26,573 4,404,053 864,817 5,268,870 $146,874 $4,404,053 $864,817 $5,268,870 $146,874 $4,404,053 $864,817 $5,268,870 $146,874 $4,404,053 $864,817 $5,268,870 UG Student Aid Fund Facilities Improvement Fund Indirect 120,301 Participation 192,018 Academic Initiatives (68,350) Provost’s Initiatives (3,367) Graduate Programs Total Revenues Expenses Direct Indirect Allocated Central Costs Facilities Based Total Expenses Definitions: Direct Revenues and Direct Expenses in Revenue Centers include all categories displayed in the Summary of Budgeted Operating Revenues and Expenses. Center Revenues are directly generated by the center less any financial aid paid from center funds. The Undergraduate Student Aid is centrally administered and charged to academic centers on a predetermined percent of undergraduate tuition. For fiscal year 2018-2019, the rate is 30.0%. Indirect Revenues are the sum of Participation, Academic Initiatives, Provost’s Initiatives and Graduate Programs. Participation is a tax on gross tuition revenue, recovery of indirect costs, sales and service and other sources. For fiscal year 2018-2019, the rate ranges from 9.4% to 10.0%. Academic Initiatives funding is for specific activities for a limited time period. Provost’s Initiatives funding is allocated from centrally controlled funds to support university priorities. Graduate Programs funding is provided to schools in support of graduate education. All PhD tuition is centralized and allocated to various schools based on academic priorities. Indirect Expenses are the sum of Allocated Central Costs and Facilities Based Indirects and equal the net budgets of administrative centers (see Individual Administrative Centers 2018-2019 Budget by Presidential and Senior Vice Presidential Responsibility Area). Allocated Central Costs are central administrative costs that benefit the university as a whole and are allocated to revenue centers. Facilities Based Indirects are space related costs that can be linked directly to a center’s occupancy. University of Southern California 2018 FINANCIAL REPORT / 45 2019 Individual Administrative Centers by Presidential and Senior Vice Presidential Responsibility Area 2018-19 Budget / in thousands Net Operating Budget Employee Benefits Budget President Net Operating Budget Senior Vice President, Finance and CFO President’s Office $4,384 Total $4,384 — Budget and Treasury $5,166 Campus Development 4,440 Comptroller Corporate Expense 9,497 Facilities Management Services Academic Affairs $6,778 Financial and Business Services 18,321 19,211 Information Technology Services 66,373 Faculty Affairs $464 Faculty Sabbaticals Global Initiatives Office of Research 16,500 3,462 18,012 Student Affairs 13,207 University Libraries USC Stevens Center for Innovation Total 2,057 Senior Vice President’s Office 5,067 $265,109 $618,464 10,573 Provost’s Office University Art Galleries 614,579 103,115 Major Maintenance and Renovation Total $3,885 51,073 Provost and Senior Vice President for Academic Affairs Enrollment Services Employee Benefits Budget 36 USC Alumni Association 42,377 4,171 $118,541 Senior Vice President, University Advancement Senior Vice President’s Office 750 Total $35,421 2,264 $37,685 — $17,000 Senior Vice President, University Relations Senior Vice President, Administration Audit Services $2,013 USC Center for Work and Family Life Compliance General Counsel 20,120 Tram, Campus Cruiser and Rideshare University Real Estate Total $13,639 — 4,406 48,890 Senior Vice President’s Office $13,639 Total $1,183 Department of Public Safety Human Resources University Relations 3,696 26,828 ($678,100 ) Employee Benefit Recoveries Total Administrative Centers $545,920 Undergraduate Student Aid Fund $295,969 — 14,436 7,412 10,927 189 Facilities Improvement Fund 9,098 $106,562 46 / 2018 FINANCIAL REPORT University of Southern California $42,636 Grand Total 83,921 $925,810 — Role and Mission of the University of Southern California The central mission of the University of Southern California is the development of human beings and society as a whole through the cultivation and enrichment of the human mind and spirit. The principal means by which our mission is accomplished are teaching, research, artistic creation, professional practice and selected forms of public service. Our first priority as faculty and staff is the education of our students, from freshmen to postdoctorals, through a broad array of academic, professional, extracurricular and athletic programs of the first rank. The integration of liberal and professional learning is one of USC’s special strengths. We strive constantly for excellence in teaching knowledge and skills to our students, while at the same time helping them to acquire wisdom and insight, love of truth and beauty, moral discernment, understanding of self, and respect and appreciation for others. Research of the highest quality by our faculty and students is fundamental to our mission. USC is one of a very small number of premier academic institutions in which research and teaching are inextricably intertwined, and on which the nation depends for a steady stream of new knowledge, art and technology. Our faculty are not simply teachers of the works of others, but active contributors to what is taught, thought and practiced throughout the world. USC is pluralistic, welcoming outstanding men and women of every race, creed and background. We are a global institution in a global center, attracting more international students over the years than any other American university. And we are private, unfettered by political control, strongly committed to academic freedom, and proud of our entrepreneurial heritage. An extraordinary closeness and willingness to help one another are evident among USC students, alumni, faculty, and staff; indeed, for those within its compass the Trojan Family is a genuinely supportive community. Alumni, trustees, volunteers and friends of USC are essential to this family tradition, providing generous financial support, participating in university governance, and assisting students at every turn. In our surrounding neighborhoods and around the globe, USC provides public leadership and public service in such diverse fields as health care, economic development, social welfare, scientific research, public policy and the arts. We also serve the public interest by being the largest private employer in the city of Los Angeles, as well as the city’s largest export industry in the private sector. USC has played a major role in the development of Southern California for more than a century, and plays an increasingly important role in the development of the nation and the world. We expect to continue to play these roles for many centuries to come. Thus our planning, commitments and fiscal policies are directed toward building quality and excellence in the long term. University of Southern California 2018 FINANCIAL REPORT / 47 University of Southern California Leadership Board of Trustees Voting Members Miriam Adelson Michael E. Adler Wallis Annenberg Stephanie A. Argyros Wanda M. Austin Interim President Thomas J. Barrack Jr. Marc Benioff David C. Bohnett Charles F. Bolden Jr. Joseph M. Boskovich Sr. Robert A. Bradway Jeanie Buss Charles G. Cale Ramona L. Cappello Rick J. Caruso Chairman Alan I. Casden Ronnie C. Chan Yang Ho Cho Christopher Cox Frank H. Cruz David H. Dornsife Suzanne Dworak-Peck Michele Dedeaux Engemann Daniel J. Epstein Stanley P. Gold Tamara Hughes Gustavson Jane Harman Ming Hsieh Lydia H. Kennard Kenneth R. Klein John Kusmiersky Jamie L. Lee Kathy Leventhal William J. McMorrow John Mork Oscar Munoz Rod Y. Nakamoto Carmen Nava Shelly Nemirovsky Dominic Ng Suzanne Nora Johnson J. Kris Popovich Blake Quinn Edward P. Roski Jr. Amy A. Ross Frederick J. Ryan Jr. Leonard D. Schaeffer William E. B. Siart Jeffrey H. Smulyan Steven Spielberg Heliane M. Steden Mark A. Stevens Ronald D. Sugar Tracy M. Sykes Daniel M. Tsai Ronald N. Tutor Wenxue Wang Life Trustees Malcolm R. Currie Gavin S. Herbert B. Wayne Hughes Sr. Ray R. Irani Glorya Kaufman John F. King Daniel D. Lane William Lyon Claude Mann Kathleen L. McCarthy Jerry W. Neely C. L. Max Nikias Joan A. Payden Frank Price Bruce M. Ramer Lorna Y. Reed William J. Schoen Robert H. Smith Richard J. Stegemeier Ratan N. Tata Peter V. Ueberroth Andrew J. Viterbi Willis B. Wood Jr. Lloyd Silberstein Vice President and Executive Director, Capital Construction and Facilities Management Honorary Trustees Helene Galen Dallas Price-Van Breda Erik Brink Associate Senior Vice President, University Comptroller Officers and Executives Academic Deans Wanda M. Austin Interim President Anthony Bailey USC Bovard College Michael Quick Provost and Senior Vice President for Academic Affairs Willow Bay USC Annenberg School for Communication and Journalism Carol Mauch Amir Senior Vice President, Legal Affairs and Professionalism David Bridel USC School of Dramatic Arts Albert R. Checcio Senior Vice President, University Advancement David W. Wright Interim Senior Vice President, Administration Thomas E. Jackiewicz Senior Vice President and Chief Executive Officer for Keck Medicine of USC Lisa Mazzocco Chief Investment Officer David Brown Interim Senior Vice President, University Relations James M. Staten Senior Vice President, Finance, and Chief Financial Officer Lynn Swann Athletic Director Dennis Cornell Chief of Staff Anthony Bailey Vice President for Global and Strategic Initiatives Ainsley Carry Vice President, Student Affairs Martha Escutia Vice President, Government Relations Randolph W. Hall Vice President, Research Katharine Harrington Vice President, Admissions and Planning Tracey L. Vranich Vice President, Advancement Douglas Shook Vice Provost for Information Technology Services and Chief Information Officer John D. Clapp (Interim) USC Suzanne Dworak-Peck School of Social Work Pinchas Cohen USC Leonard Davis School of Gerontology Milton S. F. Curry USC School of Architecture Robert A. Cutietta USC Thornton School of Music USC Glorya Kaufman School of Dance Elizabeth M. Daley USC School of Cinematic Arts James G. Ellis USC Marshall School of Business Karen Symms Gallagher USC Rossier School of Education Andrew T. Guzman USC Gould School of Law William W. Holder USC Leventhal School of Accounting Jack H. Knott USC Sol Price School of Public Policy Haven Lin-Kirk USC Roski School of Art and Design Amber Miller USC Dornsife College of Letters, Arts and Sciences Laura A. Mosqueda Keck School of Medicine of USC Erica Muhl USC Jimmy Iovine and Andre Young Academy Vassilios Papadopoulos USC School of Pharmacy Brenda K. Maceo Vice President, Public Relations and Marketing Catherine Quinlan USC Libraries Earl C. Paysinger Vice President, Civic Engagement Avishai Sadan Herman Ostrow School of Dentistry of USC Michael Blanton Vice President, Professionalism and Ethics Yannis C. Yortsos USC Viterbi School of Engineering Produced by the Office of the University Comptroller, 2018 Design: Rick Simner Design Printing: The Pace Group For information and additional copies of this report please contact: University of Southern California Office of the University Comptroller University Park, UGB 205 Los Angeles, CA 90089-8006 (213) 821-1900 about.usc.edu