© A.M.P.A.S.® ANNUAL REPORT I 9 8 6 1 9 8 7

On May 4, 1927, the articles of incorporation for the Academy of Motion Picture Arts and Sciences were filed with the California Secretary of State and the Academy came into formal existence. Though planning meetings had been taking place for several months before that, the first official meeting of the Academy was held on May 6, and by May I I the first roster of 230 members was printed. As forefathers run, this was a pretty impressive group. It included Wallace Beery, Francis X. Bushman, Lon Chaney, Ronald Colman, Michael Curtiz, C.B. and William DeMille, Douglas Fairbanks, Cedric Gibbons, John Gilbert, D.W. Griffith, Jean Hersholt, Carl Laemmle, Jesse Lasky, Harold Lloyd, Louis B. Mayer, Colleen Moore, Ramon Novarro, Mary Pickford, Norma Shearer, Gloria Swanson, Norma Talmadge, Irving Thalberg, Eric Von Stroheim, Raoul Walsh, Darryl Zanuck and a good many other legendary names. Their motives-or the motives of some among them at any rate-have been questioned. If you read the minutes of the early meetings though, or look over the transcriptions of speeches from the Academy's earliest public occasions, it's hard not to be impressed with the high ideals of our founders. They wanted an organization that would keep its members abreast of new technical develop­ ments affecting their art. They wanted a voice that could speak for the industry when the industry was maligned or misunderstood. And they wanted an organization that would help educate the wide pu blic about motion pictures, partly by endorsing the most distinguished achievements in the field each year. The Academy they formed is 60 years old now. For those of us who have inherited the organiza­ tion and the aims it set down for itself, a little reflection seems in order. I'd like to think that if those 230 original members could look over our shoulders as we go about our various activities this anniversary year, they'd be agreeably surprised at how closely the Academy that exists today resem bles the one they set out to create. It's not all that common after all for an organization to live up to its idealistic early hopes for itself. That we in the Academy have pretty much accomplished that strikes me as cause, not for smugness or complacency certainly, but perhaps for a pause and a small warm wave of good feel­ ing ... before we hitch up our belts, take a hard look ahead and set off into the seventh decade of Academy history.

Robert E. Wise

Acc;d;;m~' of ~-~:;:io n p;c~::. ~ (,it:; u~d Selene::::; li: r:::.ry. e S~~-: :· i ; : ~;:i3, C:::f. . --.- --'-"'-'-=1 Ten years after the formation of the Academy Many things have changed about the itself the organization began publishing, as a Directory over its half-century of existence, distinctly non-profit service to the commu­ but two things have not: its role as the indus­ nity, a roster of the film industry's acting tal­ try's casting bible and its camera operator, Ted ent. This year the Players Directory celebrated Fairfield. Mr. Fairfield stripped in the April, its 50th anniversary while it printed its 16 5th, 1937 edition, the May, 1987 edition and every 166th and 167th issues in history. edition in between. Though he's not a staff 1,200 performers were listed in the original member, he's been a formidably dedicated volume, compared to an average 17,000 in the part of the family and it seems appropriate to 50th year editions. The publication now pays salute him, as well as the Directory itself, on for itself. Each edition consists of four vol­ their 50th anniversaries. umes instead of one.

Ted Fairfield and first-year PO editor Patricia Citrano, ready to launch the second half-century.

2 Early in the 1986-87 year the Nicholl Fellowship Committee selected three recent graduates of California schools as the first recipients of a prize that will soon be estab­ lished as one of the most sought-after awards in American arts_ The Academy's Nicholl Fellowships provide living expenses to enable promising new screenwriters to spend a year focusing exclusively on their writing. Funded by Mrs. Gee Nicholl in memory of her husband Don, fellowships were awarded in the pilot year to Allison Anders of UCLA, Jeffrey Eugenides of Stanford and Dennis Clontz of UCLA. The three received the first installment of the prize at a ceremony at the 1986 Nicholl Fellows Dennis Clontz, Allison Anders and Academy on October I, 1986, and sp(mt the Jeffrey Eugenides; Nicholl Committee Chairman Julian remainder of the year working on new feature­ Blaustein Mrs. Gee Nicholl with 1986 Fellow length scripts. Jeff Eugenides The Nicholl program was expanded into eleven states for the 1987-88 year, and is expected to be available nationally by its third year. The Nicholl Committee is chaired by Julian Blaustein and includes Ben Benjamin, John Gay, Arthur Hiller, Fay Kanin, Jack Lemmon, Daniel Taradash and Robert Wise.

The 1987 Student Film Daughter;' and Loyola Awards were presented Marymount's William on June 7 at ceremonies Mitchell took the Exper­ hosted by Directors imental prize with a branch Governor Gilbert remarkable 70mm time­ Cates. It was a year lapse study. marked by exceptional James M. Spione .of strength in the Docu­ SUNY Purchase was one mentary category: Stan­ of two 1987 winners in ford's Lynn Mueller and the Narrative category, Tina DeFeliciantonio with CBN University's won separate major British student filmmaker Mark Herman was hon­ Antonio Zarro taking ored for his beautifully-crafted comedy "See You at awards in that category, Wembley, Frankie Walsh:' Herman, right, shared the first prize with his 56- and USC's Izak Ben-Meir stage with Student Film Awards host Gil Cates and minute "Bird in a Cage:' took a third one. the director of the U.K:s National Film and Television Debra Winger and The Rhode Island School, Colin Young, center. Timothy Hutton served The Hutton family kept the 14th pre­ School of Design captured its second as presenters for the evening, and saw to it that sentation ceremonies loose and lively. straight Animation award with Karen the Class of '87 avoided the sins of solemnity McCoy Fremuth's "Husband of the Rat's and self-importance. Academy Governor William Littlejohn at the exhibition The John Harkrider Exhibition occupied the Grand Lobby honoring Paramount Pictures on its 75th year. Other in February and March . The sketch for SHOWTlME major shows at the Academy this year included a display above was one of I 2 0 Harkrider production and costume on film preservation and a photographic and poster exhibit design sketches in a collection donated to the Margaret accompanying the Academy's Tribute to Carlos Saura. Herrick Library by Robert Parucha.

An extraordinary collection of original Amsel illustrations were exhibited at the Academy prior to being sold at auction in New York.

The year's special programming began with the July 28 Tribute to Carlos Saura, presented in cooperation with the UCLA Film, Television and Radio Archives. Saura, above, was present together with collaborators Ana Torrent and The Bowery Boys Meet the Woolf Man. Huntz Hall Fernando Rey. and Gabriel Dell joined Edward Albee at the Academy's Lincoln Center celebration of the 50th anniversary of the classic motion picture DEAD END. Sidney Kingsley, Sidney Lumet, Betty Comden and Brendan Gill also par­ titipated in the February event, attended by a large con­ tingent of the Academy's New York membership.

Ana Torrent

The Museum of Modern Art's film department marked the Academy's 60th year with a 14-picture series of prints from the AMPAS Film Archive. Back at home, the Academy celebrated its own birthday with four evenings of champagne receptions and screenings of mint-condition prints of Best Picture winners. Fernando Rey Robert Wise, Lauren Bacall, Roddy McDowell and Fay Kanin were among the notables at December's Tribute to Nunnally Johnson. The evening included a selection of clips from Johnson's remarkable body of work, as well as reminiscences by Bacall, David Brown, Jerome Hellman and George Roy Hill. Alistair Cooke, above, provided a witty, affectionate keynote for the tribute.

Film editor Eric Sears with Academy sound branch Gover­ nor Tex Rudloff, right, at the Academy Seminar in Post­ Other 19 86-87 Visiting Artists Critic Leonard Maltin hosted Academy Governor Karl production. Hosted by Rudloff, the three-evening series included writer-director Tim Hunter to Malden in an unusual6-part version of the Visiting Artists also drew on the contributions of editors Carol Littleton Portland's Northwest Film and Video program at La Jolla's Visual Arts Foundation in which and Michael Economou, sound editors Cecilia Hall and Center, composer-songwriter Paul Oscar winners discussed the pictures they had been hon­ George Watters II, music editor Dan Carlin and composer Williams to Moorpark College, writer ored for. The series also included Robert Wise, Charlton Patrick Williams. Edward Anhalt to Arizona State Uni­ Heston, Linda Hunt, Louise Fletcher and Walter Murch. versity, film editor Rudi Fehr to both Hillsdale College (M ichigan) and Hofstra University, and cinematog­ The Academy's four Annual Lectures continued to provide raphers Andrew Laszlo to the University entertaining, illuminating evenings. Film historian Rudy of Richmond and Vi/mos Zsigmond to Behlmer, left, met with Robert Wise, George Stevens, Jr. the University of Arizona. and Academy Governor Robert Rehme at a reception pre­ ceding the George Stevens Lecture on Directing. Behlmer provided remarks prior to a screening of GUNGA DIN. The George Pal Lecture abandoned its usual format for a screening of a feature-length film-"The Fantasy Film Worlds of George Pal" -on the lecture's namesake. A pair of writers-directors-and-occasionally-actors, Paul Mazursky, below left, and John Sayles, below, contributed memorable 1986 editions of, respectively, the Jack Oakie Lecture on Comedy and the Marvin Borowsky Lecture on Screen writing. The Academy Library added a wide range of new materials to its collections in the 1986-87 year, including a distinguished addi­ tion to its holdings of the career papers of American directors. The Sam Peckinpah Col­ lection, donated by Mr. Peckinpah's daughter Kristin, is a remarkably complete gathering of scripts, photographs, production files and correspondence on the director's career. The collection also includes a unique series of tape recordings that it was Peckinpah's habit to make as he worked through the creative pro­ cess on his films. Among the year's other important acquisi­ tions were the Leah Rhodes Collection of cos­ tume sketches and photographs, and Rudolph Valentino's personal copies of oversized origi­ nal MONSIEUR BEAUCAIRE stills. Tom Tarr donated a unique collection of original Technicolor® film frames from the 1930's and 40'S. Robert Wolders contributed Merle Oberon's annotated script of WUTHERING Sam Peckinpah on location with THE WILD BUNCH. HEIGHTS, as weli as other scripts, corres­ pondence and stills on Miss Oberon, and Pat Callahan Bruder gave an extensive collection documenting Gene Kelly's career. MGM /UA presented the Academy with the United Artists Photograph Collection, a rich lode encompassing 306 titles that UA released between 1950 and 1980. The library'S stills archive also received important gifts this year from Sid Avery and from Turner Entertainment. Irene Rich and Mrs. Ray Milland made generous contributions to the archives.

The Cri~icl!iI' Choicer

The Leah Rhodes collection-and the Academy exhibition celebrating the gift-was typified by this design for Ann As the Library's holdings Rutherford in THE ADVENTURES OF DON JUAN. become more extraordinary each year, so do its space requirements. The past fiscal year saw the Academy Officers and staff give vigorous atten­ tion to the need for a larger library/archival facility; look DeYoung Kim contributed a thousand for next year's Report to con­ one·sheets, primarily from the United tain important news on that Kingdom, to the Herrick' s extensive poster collection. front.

6 SENNHEISER SYSTEM Early in 1987 the Samuel Goldwyn Theater became the first motion picture theater in the world to be equipped with a Sennheiser infrared sound system. The process is an aid to the hearing impaired: all of the multi-track information of a soundtrack is combined and a balanced, monaural sound is "broadcast" to audience members wearing lightweight headsets available at the entrance desk. The headsets work anywhere in the auditorium, and do not interfere with those listening to a picture conventionally.

N.Y. DGA SCREENINGS Working to solve a longstanding problem for New York-area members, President Wise approached the Directors Guild of America about inviting Academy Members to its New York screenings, an overture that the Guild responded to very graciously. The Academy's own membership list in New York hasn't been lengthy enough to make membership screenings practical, but the DGA's neigh­ borly gesture is making it possible for eastern members to keep up with current releases on a year­ round basis.

FACELIFT FOR INDEX The Academy's Annual Index to Motion Picture Credits was handsomely redesigned for its 1986 volume, but at heart it remains the same indispensible yearly record of who accomplished what in theatrical motion pictures. For subscription information contact editor Byerly Woodward at the Academy.

NEHGRANT The Margaret Herrick Library learned this year that the National Endowment for the Humanities has renewed its grant support of the ongoing project of converting its extraordinary "clippings" .." :t: files to microfilm. An earlier NEH grant had made it possible to transfer nearly half of the massive § collection into the safer, more compact form over the past three years, and the renewed funding of $85,800 for the 1987-1990 period should see the job nearly to completion. '"() o ::l :t: FILM ARCHIVE '"Z The Academy Film Archive continued during the 1986-87 year to solidify its place as one of the I--______~ r_ '" nation;s important centers of film preservation work. Film Curator Daniel Woodruff compiled the first full catalog of films preserved by the Academy (sometimes jointly with other institutions), a list which begins in 1947 and now encompasses over 2,700 titles. Films preserved in the year just past include GOING STRAIGHT (1916) with Norma Talmadge, PALACE OF THE ARABIAN KNIGHTS, a hand-colored 1905 Melies short, Will Rodgers' 1924 BIG MOMENTS FROM LIT­ TLE PICTURES and a World War I documentary. Alfred Hitchcock's origi­ nal ending for his film TOPAZ (1969) was dis­ covered in material in the Hitchcock Collection, and was subsequently restored to the film and released on laser disc by MCA Home Equity's 1921 HUSH was among the Film Archive's successful rescue efforts. The Video. picture featured Clara Kimball Young and Frank Glendon. Or perhaps Sean Penn. The Awards process started 3'12 hours earlier in 1987. In response to interest from Europe and from the networks in the U.S., the Academy traded its traditional 9:00 A.M. Nominations Announcements for a 5:30 (P.S.T.) start that allowed live coverage by the network morning shows. Reigning Best Supporting performers Anjelica Huston and Don Ameche joined President Wise in presenting the slates of 1986 Nominees. A fast five weeks later the majority of those An international contingent of broadcast and print jour­ so honored convened at The Beverly Hilton nalists turned out, with only perfunctory grumbling, for the pre-dawn Nominations Announcements. for the annual Nominees Luncheon, where Art Directors branch Governor their certificates of nomination were dis­ jerry Wunderlich, right, dis­ pensed along with pleas for them to polish cussed the 1986 nominations their acceptance speeches to diamond-like with fellow early riser Richard Kahn. Academy v.P. Kahn and brilliance and size. his coordinating committee At the Scientific or Technical Awards cere­ oversaw the smooth running of monies on March 22 twenty-four individuals both the announcements and the Nominees Luncheon. and two companies were recognized for the advances in sound recording, optical printing, special effects and in other technical areas on which the motion picture arts so absolutely depend. Cinematographers branch Governor Joseph E. Westheimer hosted the evening. Robert Wise, Anjelica Huston and Don Ameche intro­ duced the year's 164 nominees to the world.

Nominees David Lynch and james Woods collected certifi­ cates at the Academy's annual luncheon.

Thalberg Award presenter Richard At the Directors Lunch honoring the Foreign Language Dreyfuss with 59th Awards producer nominees: (front row) Irwin Kershner, France's jean­ Samuel Goldwyn,jr. jacques Beineix, Holland's Fons Rademakers, Czechoslo­ vakia's jerzy Menzel, Canada's Denys Arcand, Austria's Wolfgang Gluck, host George Schaefer. (back row) Arthur Hiller, George Sidney, Robert Ellis Miller, Martin RiU, Billy Wilder.

8 To produce the 59th Awards the Academy called on one of the most respected figures in contem­ porary Hollywood, an Academy Governor whose name evokes the glories of Hollywood past­ Samuel Goldwyn, Jr. Mr. Goldwyn, working with Director Marty Pasetta, writers Jeffrey Barron, Ernest Lehman, Jack Rose and Mel Shavelson and production designer Roy Christopher, put together an elegant, crisply-moving show that managed to underline the importance of the awards categories themselves as well as the winners of them.

Paul Hogan Dustin Hoffman Elizabeth Taylor Bette Midler

Roy Christopher provided the Oscarcast with a series of vibrant, imaginative settings.

Goldie Hawn; Chevy Chase

Winning is the eas y part. Then you have to meet the press. The " Room with a View" table was a thicket of Oscars at the post-Awards Governors Ball. Marlee Matlin Steven Spielberg's eloquent acceptance of the Irving Thalberg Award was one of the shoul s highlights.

"The Assault" director Fons Rademakers

"Platoon" writer/ director Oliver Stone was congratulated Documentary Short winner Vivienne Verdon-Roe by a radiant Elizabeth Taylor.

For Achievements During 1986 Best foreign language film: THE ASSAULT (A Fons Rademakers Production B. V. for Cannon Group Best performance by an actor in a leading role: Holland, The Netherlands) PAUL NEWMAN in The Color of Money Best achievement in makeup: THE FLY (Chris Walas and Best performance by an actor in a supporting role: Stephan Dupuis, Makeup) MICHAEL CAINE in Hannah and Her Sisters Best original score: 'ROUND MIDNIGHT(Herbie Best performance by an actress in a leading role: Hancock, Composer) MARLEE MATLIN in Children of a Lesser God Best original song: TAKE MY BREATH AWAY from Best performance by an actress in a supporting role: "Top Gun" (Music by Giorgio Moroder, Lyric by Tom DIANNE WIEST in Hanna and Her Sisters Whitlock) Best achievement in art direction: A ROOM WITH Best Picture: PLATOON (Arnold Kopelson, Producer) A VIEW (Art Direction: Gianni Quaranta and Brian Ackland-Snow; Set Decoration: Brian Savegar and Elio Best animated short film: A GREEK TRAGEDY (Linda Altramura) Van Tulden and Willem Thijssen, Producers) Best achievement in cinematography: THE MISSION Bestlive action shortfilm: PRECIOUS I MAGES (Chuck (Chris Menges, Director of Cinematography) Workman, Producer) Best achievement in costume design: A ROOM WITH Best achievement in sound: PLATOON Uohn K. A VIEW Uenny Beavan and John Bright, Costume Wilkinson, Richard Rogers, Charles "Bud" Grenzbach Designers) and Simon Kaye, Mixers) Best achievement in directing: PLATOON (Oliver Stone, Best achievement in sound effects editing: ALI ENS Director) (Don Sharpe, Supervising Sound Editor) Best achievement in documentary films-Feature (Tie) Best achievement in visual effects: ALIENS (Robert ARTIE SHAW: TIME IS ALL YOU'VE GOT (Brigitte Skotak, Stan Winston, John Richardson and Suzanne Berman, Producer) and DOWN AND OUT IN Benson) AMERICA Uoseph Feury and Milton Justice, Producers) Best screenplay written directly for the screen: Best achievement in documentary films-Short Subject HANNAH AND HER SISTERS (Woody Allen, Writer) WOMEN-FOR AMERICA, FOR THE WORLD Best screenplay based on material from another medium: (Vivienne Verdon-Roe, Producer) A ROOM WITH A VIEW (Ruth Prawer Jhabvala, Best achievement in film editing: PLATOON (Claire Writer) Simpson, Editor)

)0 Dianne Wiest Herbie Hancock Bran Ferren

jennifer jones Simon presented the 1987 Cinematography Karl Malden with Honorary Award-winner Ralph Bellamy award to "The Mission'" s Chris Menges.

Other Awards To Richard Edlund, Gene Whiteman, David Grafton, Mark West, Jerry Jeffress and Bob Wilcox of Boss Film Corp. for Irving G. Thalberg Memorial Award: the design and development of a Zoom Aerial (ZAP) 65mm Steven Spielberg Optical Printer. Honorary Awards: Ralph Bellamy (For his unique artistry To William L. Fredrick and Hal Needham for the design and and his distinguished service to the profession of acting.) development of the Shotmaker Elite camera car and crane. E.M. (AI) Lewis (In appreciation for outstanding service Technical Achievement Award (Academy and dedication in upholding the high standards of the Certificate) Academy of Motion Picture Arts and Sciences.) (Medal of Commendation) To Lee Electric (Lighting) Limited for the design and development of an electronic, flicker-free, discharge lamp control system. Scientific or Technical Awards To Peter D. Parks of Oxford Scientific Films' Image Quest Scientific and Engineering Award (Academy Plaque): Division for the development of a live aero-compositor for To Bran Ferren, Charles Harrison and Kenneth Wisner of special effects phorography. Associates and Ferren for the concept and design of an To Matt Sweeney and Lucinda Stru b for the development advanced optical printer. of an automatic capsule gun for simulating bullet hits for To Richard Benjamin Grant and Ron Grant of Auricle motion picture special effects. Control Systems for their invention of the Film Composer's To Carl Holmes of Carl E. Holmes Company and ro Alex­ Time Processor. ander Bryce of The Burbank Studios for the development To Anthony D. Bruno and John L. Baptista of Metro­ of a mobile DC power supply unit for motion picture pro­ Goldwyn-Mayer Laborarories, Inc., and to Manfred G. duction photography. Michelson and Bruce W. Keller of Technical Film Systems, To Bran Ferren of Associates and Ferren for the develop­ Inc., for the design and engineering of a Continuous-Feed ment of a laser synchro-cue system for applications in the Printer. motion picture industry. To Robert Greenberg, Joel Hynek and Eugene Mamut of To John L. Baptista of Metro-Goldwyn-Mayer Labo­ R/Greenberg Associates, Inc., and to Dr. Alfred Thumim, ratories, Inc., for the development and installation of a Elan Lipshitz and Darryl A. Armour of the Oxberry Divi­ computerized silver recovery operation. sion of Richmark Camera Service, Inc., for the design and To David W. Samuelson for the development of programs development of the RGA/Oxberry Compu-Quad Special incorporated into a pocket computer for motion picture Effects Optical Printer. cinematographers, and to William B. Pollard for contribut­ To Professor Fritz Sennheiser of Sennheiser Electronic ing new algorithms on which the programs are based. Corp. for the invention of an interference tube directional To Hal Landaker and Alan Landaker of The Burbank Stu­ microphone. dios for the development of the Beat System low-frequency cue track for motion picture production sound recording.

II 1986-87 Board of Governors: (Bottom row, from left) Charles M. Powell, Tex Rudloff, Robert E. Wise, Fay Kanin, Gene Allen, Richard Kahn. (Row 2) Academy Counsel Gyte Van Zyl, Ralph E. Winters, Robert Rehme,Jonas Rosenfield,Jr., Donn Cambern, Norman Corwin, Alan Bergman, Ernest Gold,James M. Roberts. (Row 3) Assistant to the Executive Director Daniel B. Ross, Hal Elias, Eve Newman,Jerry Wunderlich, Marvin E. Mirisch,June Foray, Ted Voigtlander, Richard D. Zanuck, Charles L. Campbell, John A. Bonner, William C. Littlejohn. (Row 4) Academy Controller Otto Spoerri, Frank G. Mancuso,Joseph Westheimer,John Mansbridge, Herb Jaffe, FranklinJ. Schaffner, Samuel Goldwyn, Jr., Karl Malden, Richard Crenna. (Missing from photo) John Addison, Gilbert Cates, William A. Fraker, Larry Gelbart,Jack Lemmon.

Actors Branch Executive Committee Library Committee Karl Maldell, Chairman Walter M /risch Richard Cremw, Co-chairman Makeup Award Rules Committee Art Directors Branch Executive Committee Robert Schiffer, Chairman Gen£' Allen, Chairman john Mansbridge, Co-chairman johll Mallsbridge, Co-chairman joseph Westheimer, Co-chairman Awards Policy Comminee on Rules Membership Screening Committee Robert Rehme, Chairman Rubert F Bilimofe, Chairman Gme Allen, Co-Chairman BethlYII Hand, Co-chairman Cinematographers Branch Executive Committee Music Branch Executive Committee joseph Westheimer, Chairman john Addison, Chairman WillIam A. Fraker, Co-Chairman Erncst Go/d. Co-chairman Costume Design Award Rules Commine Nicholl Fellowship Committee Elni s j ellssell j lilian Blaustein Directors Branch Executive Committee Producers Branch Executive Committee Gilbert Cates, Chairman Richard D. Zal111ck. Ch~lirman Frallklillj. Schaffller, Co-chairman Herb jaffe, C.o-chJirman Documentary Awards Comminee Public Relations Branch Executive Committee NormaN Corwill, Chairman RIchard Kalm, ChalrmJn Arthur H. Nadel, Co·chalrman jonas Rosell{ield,jr., Co-chalrm.lIl Executives Branch Executive Committee Public Relations Coordinating Committee Robert Rehme, Chairman Richard Kalm Marl.lill E. Mirisch, Co-chairman Scholarships and Grants Committee Film Editors Branch Executive Comminee DaHiel Ttlradash Dml11 Cambern, Chairman Scientific or Technical Awards Committee Ralph E. Willlers, Co-chalrnlan joseph Westheimer, Ch.lIfman Finance Committee john A. Bomler. Co-chJirman Tex Rudloff Short Films Branch Executive Committee Foreign Language Film Award Executive Comminee WII"am C. Littlelolm Rohert M. W Vogel, Chairman Sound Branch Executive Committee Rudi A. Fehr, Co-chairman Tex Rlldloff Nina Foell, Co-chairnlJll Student Film Awards Executive Committee General Membership and Review Comminee june rora)" Chalrnun Charles M. Powell, Chairman William Hurtz. Co-chJlrman Marvin E. Mnisch. Co-chairman Theater Sound Inspection Committee Sub-Comminee on Agents john A. Bonner, Chairman Lee G. Rosellhe'1!. Rlchardj. Stllmpf, Co-chairman Sub-Committee on Casting Directors Visual Effects Award Rules Committee jell",fer Shull joseph Wcsthetmer. Chairman Investment Committee Albertj. Wlntlock. Co-chalrJllan Marvinl-~. Mirisch Writers Branch Executive Committee Fay Kalil"

1 2 Executive Director Margaret Herrick Library James M. Roberts Linda Harris Mehr Administrator, Office of the Executive Director Special Collections Mary Lou Finnin Samuel Gill Assistant to the Executive Director Photographic Services Daniel B. Ross Robert Cushman Controller Academy Historian Otto C. Spoerri Patrick Stockstill Executive Administrator National Film Information Service Bruce Davis Kristine Krueger Program Coordinators Academy Players Directory Exhibitions Patricia L. Citrano, Editor Retrospectives Film Department Coordinator Douglas Edwards D.j. Ziegier Student Film Awards Film Curator Nicholl Fellowships Daniel Woodruff James M . Roberts with Dolores Rubin Richard Miller Legal Counsel Levin and Carlos Saura. Lectures and Seminars Doggett & Van Zyl Visiting Artists Public Relations Counsel Ric Robertson Ruder Finn & Rotman Annual Index to Motion Picture Credits Certified Public Accountants Byerly Woodward, Editor Price Waterhouse

Two notable milestones with respect 5000 T---~~--~-----r----~----~----r---~~--~-----r----~----~--~ to membership were reached in the sixtieth anl1iversary year. The number of the organization's Iivil1g members reached 5,000 for the first time in history, al1d the Academy invited its first filmmakers working 4000 +----i----~----+_--~~--_+----~----~--~----~--~~--~~--~ in the Soviet Ul1ion and the People's Republic of China to membership.

Since the Academy is not an organi­ zation that lists growth as one of its aims, no hats were tossed skyward 3000 +----i----~----+_--~~--_+----~----~~~----~~~~~ when the J ,000 mark was achieved. The various branch committees which oversee membership con­ tinue to hold distinguished achieve­ ment as the sale criteriol1 for membership, and the sharp rise on 2000 +---~~--~----_+----~----~----~~~~ the accompanying graph owes more to an expanded industry than a relaxed set of standards.

The one notable area of Academy 1000 +----t"7l""--+----+_--H outreach in recent years has been toward foreign filmmakers. The addition of Russia's Elem Klimov and Chil1a' s Xie Jin to the Directors ACTORS DIRECTORS Branch roster meant that Academy PRODUCERS WRITERS members now live and work in six­ TECHNICIANS SPECIAL teen nations in addition to the U.S. 1927 '37 '47 '57 '67 '77 '87

Research: Mary Phillips Academy of Motion Picture Arts and Sciences and the Academy Fo undation

1880 Century Park East Century City West Los Angeles , CA 90067

Price Waterhouse

September 4, 19 87

To the Board of Governors of the Academy of Motion Picture Arts and Sciences and the Board of Trustees of the Academy Foundation

In our opinion, the accompanying combined balance sheet and the related combined statements of revenue and expenses and changes in equity and of changes in financial position present fairly the financial position of the Academy of Motion Picture Arts and Sciences and the Academy Foundation at June 30, 1987 and 1986, and the results of their operations and the changes in their financial position for the years then ended, in conformity with generally accepted accounting principles consistently applied. Our examinations of these statements were made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

June 30, ASSETS 19 87 1986

Cash, including savings and interest-bearing checking accounts $ I,S84,IOO $ 849,900 Short-term investments, at cost 7,3 0 S,000 S,277,600 Accounts receivable, less allowance for doubtful accounts of $ 1 4,700 and $ 1 7,200 616,600 63 1,000 Prepaid expenses 162,300 102,800

9,668,000 6,861,300 Property and equipment, at cost less accumulated depreciation 3,421 ,800 3,S 2 3,600 Margaret Herrick Library collections, carried at no value

$ 13,089,800 $ 10,384,900

LIABILITIES AND EQUITY

Accounts payable and accrued expenses $ 278,400 $ 7 8 S,3 00 Deferred income Nicholl Endowment 61 S,200 14S,300 Other 899,200 87S,800 1,792,800 1,806,400 Equity 11,297,000 8,S78,SOO $ 13,089,800 $ 10,384,900

See accompanying notes to combined financial statements. ~ Academy of Motion Picture Arts and Sciences and the Academy Foundation

~~L~andWpuMe.1and~t/z, W~

Year ended] une 30, I987 I986 Awards program: Revenue $ 7,7 I 4,400 $ 6,802,300 Direct and indirect expenses 4,348,200 3,760,000 3,3 66,200 3,04203 00 Operations other than the awards program: Revenue- Membership dues 740,000 7 24,400 Players directory and other publications 940,000 897,700 Theater rentals 322,5 00 333,300 Interest income 559,800 443,700 Educational and cultural activities 188,400 220,100 Grant income and cash contributions 4 1,5 00 40 ,3 00 2,792,200 2,659,500 Direct and indirect expenses- Research library and other educational and cultural programs 1,833,200 1,8 I 7,300 Theater, players directory, membership and other operations 1,606,700 1,5 21 ,100

3,439,900 3,338,400 (647,700) (678,900)

Excess of revenue over expenses 2,7 I 8,500 2,36 3,400 Equity: At beginning of year 8,578,5 00 6,21 5,100 At end of year $ 11,297,000 $ 8,578,500

Year ended] une 30, I987 I986 Cash was provided by: Excess of revenue over expenses $ 2,7 I 8,500 $ 2,36 3,400 Add items not affecting cash- Depreciation 211,800 207,800 Decrease (increase) in accounts receivable 14,400 (109,200) (Increase) in prepaid expenses (59,5 00) (22,200) (Decrease) in accounts payable and accrued expenses (5 06,900) (12,200) Increase in deferred income 493,300 144,700 Cash provided by operations 2,87 1,600 2,572,3 00 Cash was used for: Additions to property and equipment 110,000 137,200 Increase in cash balance 2,761 ,600 2,435,100 Cash and short-term investments: At beginning of year 6, 127,500 3,692,400 At end of year $ 8,889,100 $ 6, 127,500

See accompanying notes to combined financial statements. Academ y of Motion Picture Arts and Sciences and the Academy Foundation

NOTE 1-Summary of significant accounting policies: Reporling entity The accompanying combined financial statements include the accounts of the Academy of Motion Picture Arts and Sciences (the Academy) and the Academy Foundation (the Foundation). All significant intercompany transactions have been eliminated. The Foundation, formed for the purpose of promoting and supporting educational and cultural activities related to the motion PIC­ ture industry, is related to the Academy in that the officers and trustees of the Foundation are also members of the Academy's Board of Governors. Recognition of revenue and expenses Revenue and expenses are recognized on the accrual basis. Grants received subJect to restricted use are recognized as revenue to the extent that expenses have been incurred for the purpose specified by the grantor; the portion of such grants not recognized as revenue is included in deferred Income. Properly and equipment The building, furniture and equipment are carried at cost less accumulated depreciation. Maintenance and repairs are expensed as incurred. Depreciation expense is computed using the straight-line method over the useful lives of the assets, thirty years for the building and ten years for the furniture and equipment. Margaret Herrick Library collections In accordance with accounting practices followed by similar nonprofit organizations, items donated to the Margaret Herrick Library collections are carried at no value on the balance sheet. Indirect expenses For financial reporting purposes, indirect or general and administrative expenses are allocated to the awards program and to operations other than the awards program based on their proportionate share of total direct costs. Indirect expenses approxi­ mated $2,152,300 and $1,889,900 for the years ended June 30,1987 and '986, respectively. Income taxes The Academy and the Foundation are nonprofit organizations determined by the Internal Revenue Service and the California Franchise Tax Board to be exempt from federal and state income taxes. NOTE 2-Awards program: Revenue from the awards program consists principally of license fees paid b)' Capital Cities/ ABC, Inc. (ABC) for the exclusive worldwide television broadcast rights. The Academy has granted the awards program broadcast rights to ABC through '990. NOTE 3-ProperlY and equipment: Property and equipment comprise the following at June 30:

Land $ 644,800 $ 644,800 Building 3,603,400 3,59803 00 Theater fixtures and equipment 875,500 850 ,800 Office and library furniture and equipment 692,100 622,100 5,81 5,800 5,7 16 ,000 Less accumulated depreciation (20394,000) (2, I 92,400) $ $

NOTE 4-Deferred income: Deferred income, representing payments received or awarded prior to the performance of services or the earning of income, comprises the following at June 30:

198 7 Nicholl Endowment $ 61 5,200 $ 145,300 Other: Membership dues $ 4 '0,600 $ 353,900 Players directory 377,400 399,600 Restricted grants 57,100 83,100 Theater operations 54,100 39,200 $ 899,200

Established in fiscal 1986, the Nicholl Endowment has been funded by grants from Gee Nicholl to the Foundation for the purpose of providing financial support to new screenwriters. Deferred income relating to the Nicholl Endowment represents the balance of the fund net of interest earned and expenses incurred to date in developing and promoting the program. Included in the cash balance at June 30, 1987 and 1986 is $630,200 and $1 5 I ,800, respectively, of Nicholl Endowment restricted funds. Included in restricted grants is $4,400 and $330300 at June 30, 1987 and 1986, respectively, from the National Endowment for the Humanities which was awarded to the Foundation in May 1984. The purpose of the grant is to enable the Foundation to microfilm historical library materials. Payments are made to the Foundation as expenses are incurred. Of the grant income recognized during the years ended June 30, 1987 and 1986, approximately $16,500 and $17,800, respec­ tively, represented unrestricted cash grants received. NOTE 5-Retirement Plan: The Academy maintains an insured noncontributory retirement plan covering all full-time employees over 24 years of age. The cost of the plan, which has been funded currently, approximated $1 5 5,800 and $137,700 for the years ended June 30, 1987 and 1986, respectively. Unfunded past service costs are being amortized over twenty years and the assumed rate of return used to determine the acruarial value of accumulated benefits is 7.5%. All contributions under the plan are made to an insurance com­ pany which is the plan trustee. The actuarial present value of accumulated plan benefits and the vested portion thereof at the most recent actuarial valuation date, July I, '986, were $1,012,800 and $993,800, respectively. Net assets of the plan as of that date totaled approximately $1.4 million.

16 DOLBY STEREO