The American Chemical Society (ACS) ended 2009 with favorable operating results, despite the severe global economic recession. As noted in the accompanying financial summary, total revenues increased 0.3 percent from $498 million in 2008 to $500 million in 2009, while total expenses decreased 1.9 percent compared to 2008. The Society’s $20 million net contribution was primarily attributable to solid performance from its Information Services units (CAS and ACS Publications). In addition, contingency plan actions and expense mitigation initiatives were implemented in early 2009 to reduce expenses and offset the impact of the global recession on Society revenues. These actions included a strategic reduction-in-force, changes in postretirement benefit plans, and a hiring freeze in programmatic and administrative units.

The Society’s financial position strengthened considerably in 2009 with net assets increasing from $519 million at yearend 2008 to $688 million at December 31, 2009. The increase in net assets can be attributed to three factors - the net from operations, investment gains, and a net reduction in postretirement benefit plan liabilities. The investment gains and to some extent, the net reduction in the postretirement benefit plan liabilities were tied to the favorable capital market returns realized in 2009.

ACS continued to serve its members and the scientific enterprise worldwide during 2009. Accomplishments include record additions to the Chemical Abstracts Service (CAS) databases, with CAS adding its 50 millionth new substance since it started in 1957. The Publications division launched two new journals with publication to begin in 2010 - The Journal of Physical Chemistry Letters and ACS Chemical Neuroscience. In addition, the Journal of Chemical Education will be added to the portfolio of official ACS journals in 2010, the result of a publishing partnership with the Division of Chemical Education.

Despite the cost reductions achieved in 2009, the Society maintained a significant investment in technology and new product development. This ongoing commitment will ensure that the Society continues to meet the diverse needs of its many constituents including ACS members, customers, technical divisions and local sections.

A copy of the Society’s audited financial statements for the year ended December 31, 2009, together with the independent auditor’s report thereon, and Management’s Statement of Responsibility, can be located at http://portal.acs.org/portal/PublicWebSite/about/aboutacs/financial/CNBP_024242.

As part of the Society’s move to greater transparency, ACS executive compensation information is publicly available on our Web site, www.acs.org. To access this information:

• From the ACS home page, click on About Us. Scroll down and click on the link to ACS Financial Information.
• On the ACS Financial Information page, scroll down to ACS IRS Form 990 and click on 2008 IRS Form.
• When ACS IRS Form 990 downloads, a box listing all of the pages will appear on the left hand side of the page. Scroll down to 990 Sch. J Compensation Info. ACS Executive salaries and other compensation are outlined in the following four pages (Schedule J) of the document.

For a further explanation of executive compesation, visit http://www.acs.org/executivecomp.