A LET T E R FRO M THE PRESIDENT

Dear Academy Member,

I never cease to feel pride when I see yet another excellent program at the Academy, whether its focus is retrospective, or educational, or both. What a wonderful and fulfilling year of programs, be it a reunion of the cast of DAMN YAN KE ES, say, or a talk by Oscar-winning writer Robert Towne or an exhibition of animation art from the former Soviet Union.

I'm also proud to be an Academy member every time I get a peek into the boxes and file drawers at our Center for Motion Picture Study, and I'm reminded of the millions of photographs, papers, films and other minutiae of movie history preserved there.

By now we should all be aware that the Academy works continuously at saving and preserving the history of the art form, and at honoring and remembering that history with programs in our theaters and exhibitions in our galleries. Why do we do it?

The answer is found in the people I see attending that Bob Towne lecture, or sitting in the Library doing research, or oohing at the stunning black-and-white George Hurrell photos on display in the Academy Gallery.

Many of them are Academy members. Even more aren't. But whether it's a student researching biographical material for a term paper, or a young director of photography learning lessons of light from Hurrell's images, or a veteran member of our Directors Branch basking in the inspired lunacy of a cartoon short, what they take away from these activities is precisely the point of all our preservation efforts. We preserve this history, this cultural heritage, and we make ourselves available to talk about it whenever possible, so that it will live on - not just in the boxes and file drawers - but in the hearts and minds of those who would carry it with them.

That's the thread that runs through this year's Annual Report. The preservation of the past to nurture the present to create the future. That's an exciting ride, and a lot of you came along for it last year. Take a look at the fun we had, and if you didn't ride with us last year, join us this. You'll enjoy it, and I promise you'll learn something, too.

Arthur Hiller President

.~c"c€:m:,' cf !.7:':ion Pict:.!re t.it:> a~d S~!:nccs l::':rciy. C:v::~;y r·:i:r;;, Calif.

Over the past decade, thousands of the production and biography clipping files containing rare, brittle and deteriorating material have been microfiched, and last year work began on filming the general subject clipping files, a herculean task that won't be completed before microfiche is obsolete and the whole process must start over with whatever is then state-of-the-art. The Academy Film Archive completed an active and ambitious year that, in addition to the Archive's primary areas of attention - the preservation and acquisition of Academy Award-winning and nominated films, and the preservation of all past Presentations - also saw the completion of a major preservation project (nine films), the staging of an international gathering of archivists, and the addition to the collection of hundreds of items pertaining to the careers of filmmakers such as John Frankenheimer, William Friedkin, Leon Shamroy, Pare Lorentz and John Whitney. For the first time in the Academy's history the Archive was able to retain copies of nominated films in all categories of the Academy Awards. So, along with , 55 other high-quality prints of features, shorts and documentaries Opposite: A November revealing a broad range of achievement in motion exhibition of Cecil B. DeMille pictures are now a permanent part of the memorabilia included this still from DeMille's 1923 version Academy's collection. of THE TEN COMMANDMENTS. Continuing its preservation of the Academy Awards shows, the Archive preserved the film elements for Above top: Another major collection was a gift from the the 21 st and 22nd presentations and created digital widow of composer , masters for the 21 st, 23rd and 24th shows from which includes North's bound kinescopes and for the 37th, 49th, 50th and 51 st conductor scores for over two shows from two-inch videotape. A digital master of dozen films, including DEATH OF A SALESMAN, plus scripts, corre­ the 67th ceremony was received from ABC. spondence, photographs and Everyone's heard of the nickelodeon, but few have recordings. North was nomi­ seen the kinetoscope reels which were such a nated for Oscars 15 times, and he was given an Academy sensation a hundred years ago. Through a Honorary Award in 1985 in collaboration with Ray Phillips, the Archive now has recognition of his creation of 45 rare kinetoscopes which were preserved this year. memorable music for a host of distinguished motion pictures. Over the course of the year, the Archive has Center: Celeste Holm was feted consolidated its film and video in a new insulated by the Academy at a December and air-conditioned storage facility in West Los Tribute in New York. Angeles. Academy collections which have been in BoHom: A costume sketch for storage for decades are now being examined Paramount's 1949 SAMSON AND and evaluated. DELILAH is part of the Gwen Wakeling Collection given to the Library by Hank Sterling.

3 p R E s E R v N G o u R p A s T

(1) In April, the Academy Film Archive co-hosted with UCLA and AFI the 1995 International Federation of Film Archives (FIAF) Congress, coordinating the seminars on d igital film restoration and multimedia held at Sony Studios, and assisting with set-up and coordina­ tion of various FIAF events and semi­ nars. Part of the Congress was the Directors Tribute to Film Preservation in the Samuel Goldwyn Theater. Directors (from left in photo) , , and ; as well as Peter Bogdanovich, Charles Burnett and Nora Ephron, participated in an eloquent and moving discussion of film preservation. (2) Library Director Linda Harris Mehr filled the Academy Little Theater In May with a talk on the early serial heroines - such as Kathlyn Williams In THE ADVENTURES OF KATHLYN - strong-minded, independent women who always prevailed over their adversaries. (3) Marine Major Harrold Weinberger, a combat cameraman from both world wars, joined , Gloria DeHaven, Edward Dmytryk and Robert Stack in reminiscing about 's role in World War II at the edition of "Films for the Fight" in May. Versions of "Films for the Fight" had previously been staged by the Academy in Deauville, France and . (4) One of the 2,400 one-sheet posters in the Margaret Herrick Library's collection of more than 15,000 which have now been catalogued on a computer database. The project was developed to provide better information to staff and researchers about the holdings, while at the same time aiding conservation by decreasing the need to handle individual items. Each database entry will include color reference images plus additional information.

4 (5) The Collection, one of the richest acquired by the Margaret Herrick Library this year, contains correspondence, scripts, production records and photographs like this one from OLD GRINGO. (6) The Academy Gallery on the fourth floor of the Wilshire Boulevard head­ quarters building was remodeled during the past year and opened in June with a photographic display of the glamour photography of famed studio portraitist George Hurrell. Taken from the Margaret Herrick Library's holdings, many of the "rediscovered" photos in the show had not been displayed or published in more than 50 years. (7) Clark Gable by George Hurrell. (8) Two-time Oscar-winning animator Frederic Back, shown viewing a display that was part of the exhibition of Soviet Animation Art in the Academy Grand Lobby, was joined by Co Hoedeman, Bill Kroyer, Bill LiHlejohn and Ishu Patel at a February Academy Tribute to Animation that saluted the 25th anniversary of the International Tournee of Animation. (9) Cel from Frederic Back's 1987 Oscar-winning animated short, THE MAN WHO PLANTED TREES. (10) The Satyajit Ray Preservation Project, in collaboration with the Merchant Ivory and the David and Lucile Packard foundations, made 6 significant progress, with work completed on nine films. The newly­ restored print of PATHER PANCHALI was screened in April at the Samuel Goldwyn Theater. Among aHendees were Ismail Merchant and Academy Past President Robert Rehme (photo). Two projects to restore Best Picture winners OLIVER! (1968) and IN THE HEAT OF THE NIGHT (1967) are in the early planning stages.

5 6 7 T H ANN U A L A CAD E M Y A WAR D 5

If the Academy's preservation work points toward the past and its educational efforts toward the future, then the Academy Awards represent the present, and the link between the past and future. History is created every Oscar Night. The winning of an Oscar adds an appellation to a filmmaker' s name - "Academy Awa rd­ winner. .. " - that endures well beyond the winner's lifetime and grants the immortality of listing and record-keeping in libraries, books, Internet Web sites and the Academy's own archives. The 67th Academy Awards Presentation contributed tidbits to the banquet of history: eTom Hanks became only the second male performer in history to win back-to-back Oscars in the Best Actor category.

eThe fifth tie in Oscar history occurred when FRANZ KAFKA'S IT'S A WONDERFUL LIFE and TREVOR received the same number of votes for the Live Action Oscar, and both took home statuettes. As press interest in anything Oscar continues to grow (a record 1,346 press credentials were issued this year), independent movie marketers continue to tap into that interest to create controversy to publicize their films. This yea r they were particularly successful in generating publicity for a television movie, "The Last Seduction," which sued the Academy in a failed attempt to overturn the Academy's rule that television films don't qualify for Oscar consideration, and for a documentary, Hoop DREAMS , which was not nominated for Best Documentary Feature. The Hoop DREAMS brouhaha, though, became a catalyst for changes in the procedures for nominating documentary feature films. Late -night network talk-show personality David Letterman hosted the Shrine Auditorium Oscarcast, bringing with him immense press and viewer interest which contributed to a 32.5 rating for Producer Gil Cates' sixth show, as well as a 5% increase over the 1994 telecast and the highest rating for the Academy Awards since 1983.

6 FOR A C H EVE MEN T 5 N 1 994

Performance by an Actor in a Leading Role: Achievement in Music (Original Score): in FORREST GUMP THE LION KING (Hans Zimmer)

Performance by an Actor in a Supporting Role: Achievement in Music (Original Song) : in ED WOOD "Can You Feel the Love Tonight" from THE LION KING Performance by an Actress in a Leading Role: (Music by Elton John, Lyric by Tim Rice) Jessica Lange in BLUE SKY Best Picture: Performance by an Actress in a FORREST GUMP (Wendy Finerman, Steve Tisch Supporting Role : and Steve Starkey) Dianne Wiest in BULLETS OVER BROADWAY Best Animated Short Film: Achievement in Art Direction: BOB' S BIRTHDAY (Alison Snowden and THE MADNESS OF KING GEORGE (Art Direction: David Fine) Ken Adam; Set Decoration: Carolyn Scott) Best Live Action Short Film: Achievement in Cinematography: FRANZ KAFKA'S IT'S A WONDERFUL LIFE LEGENDS OF THE FALL (John Toll) (Peter Capaldi and Ruth Kenley-Letts) and On the Saturday of Oscar Achievement in Costume Design: TREVOR (Peggy Rajski and ) Weekend, Governors Ball Chair Alan Bergman THE ADVEN TURES OF PRISCILLA, QUEEN OF THE described the upcoming DESERT (Lizzy Gardiner and Tim Chappel) Achievement in Sound: party to tv press hungry SPEED (Gregg Landaker, Steve Maslow, for bites. Achievement in Directing: Bob Beemer and David R. B. MacMillan) FORREST GUMP () Achievement in Sound Effects Editing: Best Feature Documentary Film: SPEED (Stephen Hunter Flick) MAYA LIN: A STRONG CLEAR VISION (Freida Lee Mock and Terry Sanders) Achievement in Visual Effects: FORREST GUMP (Ken Ralston, , Best Short Subject Documentary Film: Stephen Rosenbaum and Allen Hall) A TIME FOR JU STICE (Charles Guggenheim) Achievement in Writing: Screenplay Based on Achievement in Film Editing : Material Previously Produced or Published: FORRE ST GUMP (Arthur Schmidt) FORREST GUMP (Eric Roth)

Best Foreign Language Film: Achievement in Writing: Screenplay Written BURNT BY THE SUN (Russia) Directly for the Screen: PULP FICTION (. Stories by Achievement in Makeup: Quentin Tarantino & Roger Avary.) ED WOOD (, and Yolanda Toussieng)

7 T H E 6 7 T H A N N u A L a

(1) Telecast Producer Gil Cates and Director Jeff Margolis shared a light moment during show rehearsals at the Shrine 2 Auditorium.

(2) David Letterman brought with him a huge audience to cheer his stint as Oscar show ringleader.

(3) A bemused Nigel Hawthorne, leading actor nominee for THE MADNESS OF KING GEORGE, on the arrivals line.

(4) Arriving at the Shrine Auditorium, Rita Wilson, Tom Hanks and Gary Sinise were 4 crowd favorites. Tom's smile broadened considerably after he won his second-in-a­ row leading actor Oscar for FORREST GUMP.

(5) Surrounded by Oscars, Oscarcast Producer Gil Cates and Fashion Coordinator Fred Hayman talked with television press following the February showing of Oscar fashions at the Academy.

(6) 's "in recognition of his place as one of the cinema's master visual artists" was presented by .

(7) Dianne Wiest won her second Oscar for Performance by an Actress in a Supporting Role for her work in BULLETS OVER BROADWAY.

8 A c A D E M y A w A R D 5

(8) Robert Zemeckis received his pscar for directing FORREST GUMP from his mentor and last year's winner, Steven Spielberg.

(9) Martin Landau's Oscar for his supporting performance in ED WOOD was presented by last year's supporting actress winner Anna Paquin. 10 (10) Eric Roth's screenplay for FORREST GUMP, based on the novel by , gave him an Oscar for his first nomination.

(11) Jessica Lange won an Oscar for her leading role in BLUE SKY, her first after five nominations in that category. It will join the 1982 award for her supporting role 11 in TOOTSIE.

(12) Nikita Mikhalkov, director of the Oscar­ winning foreign language film, Russia's BURNT BY THE SUN, during his acceptance speech joyously tossed to his shoulder his eight-year-old daughter Nadia, who played a character of the same name in the film.

(13) Among a forest of Oscars taken home by best picture FORREST GUMP were three for its producers, Steve Starkey, left, Wendy Finerman and Steve Tisch.

(14) Arnold Schwarzenegger presented the Irving G. Thalberg Memorial Award to Clint Eastwood in "recognition of a consistently high quality of motion picture production."

Center: The 67th Academy Awards Presentation audience was welcomed by Academy President Arthur Hiller.

9 SCIENTIFIC AND TECHNICAL AWARDS

TECHNICAL ACHIEVEMENT AWARDS puter equivalent of a 3D camera. This results in a (CERTIFICATES) computer database that can be manipulated and animated for use in motion pictures. To Audio Tracks, Inc. for the design and develop­ ment of the ADE (Advanced Date Encoding) To Mark R. Schneider, Herbert R. Jones, System which creates an encoded timecode track Christopher D. Conover and John R. B. Brown for and database during the initial transfer of the the development of the Polhemus 3 Space production sound "dailies." Digitizing System. The ADE System provides a method to bridge the This system can take 3D measurements from gap between conventional film picture editorial a static object in order to construct a computer and digital sound post production in order to database from a complex real-world object. facilitate subsequent editing. To Jack C. Smith, Michael Crichton and Emil To Colin Broad of CB Electronics for the design Safier for pioneering computerized motion picture and development of the EDL (Edit Decision List) budgeting and scheduling. Lister which creates an encoded timecode track The early work of these men demonstrated the and database during the initial transfer of the practicality of motion picture budgeting and production sound "dailies." scheduling software on small computers. The EDL Lister provides a method to bridge the To Stephen Greenfield and Chris Huntley of gap between conventional film picture editorial Screenplay Systems for development of the and digital sound post production in order to "Scriptor" software. facilitate subsequent editing. This software assists writers by automatically To B. Russell Hessey of Special Effects Spectacular, formatting their work into the industry-standard Inc. and Vincent T. Kelton for the hardware design screenplay page layouts. and George Jackman of De La Mare Engineering, Inc. for the pyrotechnic development which To Frieder Hochheim, Gary Swink, Dr. Joe Zhou together comprise the non-gun safety blank firing and Don Northrop for the development of the system. Kino Flo Portable, Flicker Free, High Output Fluorescent Lighting System for motion picture These "non-weapon" guns produce the effect of a set illumination. gunshot in motion pictures yet are extremely safe even when fired at very close ronge at performers. The Kino Flo system provides high-output, flicker­ These devices also have significant functional free, color-corrected fluorescent light to match advantages over conventional weapons by 3200K or daylight. This system incorporates synchronizing gunshots to bullet impacts. remote ballasting and makes available very flexible, compact, portable set lighting fixtures. To Emanuel Previnaire of Flying-Cam for his pio­ neering concept and for the development of To Clay Davis and John Carter of Todd AO, for mounting a motion picture camera on a remotely­ the pioneering effort of computer controlled list controlled miniature helicopter. management style ADR (Automated Dialogue Replacement.) In 7979, the Flying-Cam provided the first unmanned, free-flying, close-range aerial camera This development allows cue lists to be laid out in for motion picture photography. advance, entered quickly and modified if neces­ sary, saving time on the dialogue recording stage. To Jacques Sax of Sonosax for the design and development of the Sonosax SX-S portable To Stephen W. Potter, John B. Asman, Charles Pell audio mixer. and Richard Larson of LarTec Systems for the advancement and refinement of the computer The Sonosax SX-S is a light-weight, battery-pow­ controlled list management style ADR system via ered, audio mix panel which has achieved world­ the LarTec ADR System that has established itself wide acceptance in motion picture production. as a standard of the industry. To Dieter Sturm of Sturm's Special Effects Int'I for the This development allows cue lists to be laid out in creation and development of the Bio-Snow 2 Flake. advance, entered quickly and modified if neces­ Bio-Snow 2 Flake is a bio-degradable and envi­ sary, saving time on the dialogue recording stage. ronmentally safe product made for use in motion To Art Fritzen of the Fritzen Propeller picture special effects to simulate dress and Company as the designer and sole manufacturer falling snow. of the Eight-Bladed Ritter Fan Propellers. To David A. Addleman and Lloyd A. Addleman Since 7928, the Fritzen-designed propellers incor­ for the development of the Cyberware 3030 porate a vortex spoiler to break up the sonic 3D Color Digitizer. "boom" created by the propeller's high-speed tip The Cyberware 3030 3D Color digitizer uses laser and create a "quiet" wind machine for use in and video technology to capture the shape and motion pictures. color of an object in three dimensions-the com- To Dr. Mike Boudry of the Computer Film Company for of film editing. Shots can be stored, recalled, his pioneering work in the field of film input scanning. manipulated and played back instantaneously, allowing the film editor unprecedented creative Film input scanning systems are utilized to convert freedom and the ability to realize a film more fully motion picture sequences into digitol data which is than before. used for post-production manipulation, enhance­ ment, compositing, and visual effects with a quality To Paul Bamborough for the concept; Nick Pollack level previously unmatched by conventional opti­ and Arthur Wright for the hardware development; Opposite page: co/s. and Neil Harris and Duncan Maclean for the (1) FORREST GUMP'S Robert software development of The lightworks Editor for Zemeckis congratulated his film SCIENTIFIC AND ENGINEERING AWARDS motion picture editing. editor, Arthur Schmidt, at the (PLAQUES) Nominees Luncheon at The The Lightworks Editor is a digital, non-linear, 24 Beverly Hilton. Two weeks later To George Sauve, Bill Bishop, Arpag Dadourian, frame-per-second editing machine using com­ they both took home the gold. Ray Feeney and Richard Patterson for the pression algorithms, that has revolutionized the art Cinefusion software implementation of the of film editing. Shots can be stored, recalled, (2) Oprah Winfrey presented Ultimatte Blue Screen Compositing Technology. manipulated and played back instantaneously, the Humanitarian allowing the film editor unprecedented creative Award to . This computer-based im plementation of the freedom and the ability to realize a film more fully UltimaHe Cinefusion process uses intelligent maHe than before. (3) Elton John and Tim Rice felt decision algorithms and a powerful graphical the love Oscar Night when it interface to create an intuitive blue screen maHe To James Ketcham of JSK Engineering for the turned out their original song, extraction tool. concept and design of the MC21 1 "Can You Feel the Love Tonight" microprocessor-based motion controller for To lincoln Hu and Michael MacKenzie of from THE LION KING, had made synch ronizing sprocketed film with time-code Industrial light & Magic and Glenn Kennel and Oscar voters amorous. based machines. Mike Davis of Eastman for their (4) Debbie Allen's sixth telecast joint development work on a linear array The MC211 is a smart controller which can drive featured African-themed chore­ CCD (Charge Coupled Device) fi lm input different makes of film machines at several com­ ography to accompany Hilton scanning system. mon frame rates, synchronize them to a variety of BaHle and Lebo M's perfor­ references and is able to interface with time code To Ray Feeney, Will McCown and Bill Bishop of mance of "Circle of Life" from machines and other microprocessors. It has RFX, Inc., and les Dittert of Pacific Data Images THE LION KING. appropriate controls for dialogue replacement, for their development work with area array CCD sound effects recording and rerecording. (5) No, it wasn't an unreceptive (Charge Coupled Device) film input scanning system. audience. Scientific and Technical Awards presenter Jamie To Gary Demos and Dan Cameron of ACADEMY AWARDS OF MERIT (OSCARS) Lee Curtis showed the audience Information International; David DiFrancesco and To the Eastman Kodak Company for the develop­ a Technical Achievement Award Gary Starkweather of Pixar; and Scott Squires of ment of the Eastman EXR Color Intermediate winner, the Non-Gun Safety Industrial light & Magic for their pioneering work Film 5244. Blank Firing System. in the field of film input scanning. The improved color reproduction, tone reproduc­ (6) The Non-Gun Safety Blank Film input scanning systems are utilized to convert tion, and image structure of this film allow seamless Firing System is shown in action motion picture sequences into digital data which is transition among titles, special eHects, and original at the Sci-Tech demonstrations. used for post-production manipulation, enhance­ photography. Release prints made from duplicate ment, compositing, and visual eHects with a quality negatives, using this product, are virtually indistin­ level previously unmatched by conventional opticals. guishable from prints made from original negatives. To lain Neil for the optical design; AI Saiki for the To Petro Vlahos and Pa ul Vlahos for the concep­ mechanical design and Panavision International, tion and development of the Ultimatte Electronic l .P. for the development of the Panavision 11 : 1 Blue Screen Compositing Process for Primo Zoom lens for motion picture photography. motion pictures. This lens incorporates both optical performance This process is not just an improvement over the and mechanical design of unprecedented sophisti­ optical approach, it is a replacement approach cation. It has met the original design parameters with major advances. In particular, it is able to requiring that footage exposed with this zoom lens provide solutions for black gloss, impure and be intercuHable with film exposed with any of the uneven backing lighting, noise, and difficult object Primo prime lens series. characterizations such as hair, motion blur, trans­ To William J. Warner and Eric C. Peters for the parency, arbitrary colors, and shadows. concept; Michael E. Phillips and Tom A . Ohanian for the system design; and Patrick D. O 'Connor MEDAL OF COMMENDATION and Joe H. Rice for the engineering of the Avid To John A. Bonner in appreciation for outstanding Film Composer for motion picture editing. service and dedication in upholding the high The Avid Film Composer is a digital, non-linear, standards of the Academy of Motion Picture Arts 24 frame-per-second editing machine using com­ and Sciences. pression algorithms, that has revolutionized the art

11 N u R T u R N G o u R F u T u R E "More than 60 of this town's Hlost important, famous, creative and interesting filmmakers spent time at the Academy last year to pass along some of what they know."

(1) Robert Towne delivered A student or a young filmmaker could have gotten directing and casting, two "Lectures in the Lobby" the Marvin Borowsky Lecture the scoop directly from some amazing film cre­ about exhibitions then on display and several on Screenwriting. In 1974 ators last year simply by keeping his or her eyes on Academy Standards screenings that featured cast Towne won the Oscar for his the Academy Foundation's free events information and crew reunions from DAMN YANKEES, MARY CHINATOWN screenplay. That mailing list. And Academy members could have POPPINS and THEY SHOOT HORSES, DON'T THEY? film's evocative one sheet (2) basked in some heavy-duty nostalgia or listened to Annual lectures on animation, screenwriting and was designed and illustrated by Jim Pearsall. some of their closest friends, and gathered inspi­ were presented to capacity Goldwyn ration to carry into their own work as well. Theater crowds, and tributes to the British expatriate (3) Chuck Jones, creator of, They could have heard from actor Ray Walston, in Hollywood and the career of legendary among many marvelous directors Martha Coolidge and Ang Lee, produc­ showman Cecil B. DeMille rounded out the characters, Wile E. Coyote, tion designer Rick Carter, effects designer Peter season's schedule. presented the Marc Davis Ellenshaw, writer Robert Towne, actor-writer-direc­ An exhibition of Soviet Animation Art graced the Lecture on Animation. Harold tor Harold Ramis, casting specialist Mike Fenton, Grand Lobby while the Academy Gallery on the Ramis gave the Jack Oakie historian Marc Wanamaker, animator Chuck fourth floor closed for most of the spring for a Lecture on Comedy. Jones, the music-writing Sherman brothers, pro­ Hollywood glamour make-over that turned it into (4) ducer Ismail Merchant and even Bob Hope. Gwen an elegant exhibition space most appropriate for were presented in June for Verdon, George Lucas, Tab Hunter, Clint the display of its first exhibit, featuring the studio the 22nd time. Selected by Eastwood, Sidney Pollack, Martin Landau, Nora portrait photography of George Hurrell. Academy members from Ephron, , Robert Downey Jr., Steven Four tyro screenwriters received $25,000 grants in among 24 regional winners, Spielberg, Edward Dmytryk, Martin Scorsese, the 9th Annual Don and Gee Nicholl Fellowships six students received awards Robert Stack. More than 60 of this town's most in Screenwriting competition, and one of them, from presenter Kathy Bates. important, famous, creative and interesting film­ Mikhaila Max Adams of Sandy, Utah, has already They were, from left, Nancy makers spent time at the Academy last year to D. Kates, Stanford University, sold a screenplay, EXCESS BAGGAGE, to Columbia pass along some of what they know. documentary gold; Tania Pictures. Jeb Stuart, whose screenwriting credits Diez, National Film and It wasn't an everyday Academy sight, but the include THE FUGITIVE, was keynote speaker at the Television School of England, nearly 750 eleventh-graders from seven Los fellowship presentation dinner. For the 1995 Honorary Foreign Film Angeles Unified School District high schools pour­ competition, 3,691 entries were received from 50 Award; Jonathan Schell, New ing into the Samuel Goldwyn Theater were cer­ states and 23 countries. York University, alternative tainly willing partners in a new program co-spon­ The Grants Committee, chaired by director Delbert gold; Mitch McCabe, Harvard sored by the Academy, the Los Angeles Times' Mann, presented $100,000 in grants to 15 pro­ University, documentary sil­ Times in Education Program and the Los Angeles ver; David Riker, New York grams around the country, including $30,000 for Educational Partnership (Humanitas) . Over three University, dramatic gold the second year of a pilot program to fund intern­ medal winner; and Robert sessions the juniors screened films relevant to ships for graduate students at five film schools. Herrick Russ, University of topics in their American Literature and U. S. And Academy members again took the show on California, San Diego, ani­ History courses, and discussed the road through the Visiting Artists Program. mation gold. the ideas raised by the films Visiting campuses last year were Chuck Jones (to (5) "Conversations with with Times Film Critic Peter the American Museum of the Moving Image), Directors," the first program Rainer, writer-director Radha Robin Swicord and Nicholas Kazan (Cal Poly San of this fiscal year, was a look Bharadwaj, their teachers Luis Obispo), Bruce Broughton (Southeastern and classmates. Media Institute), Steve Bu rum (University Other more traditional of Las Vegas, Nevada), John Landis educational and retro- and Deborah Nadoolman (Yale spective programs University), Peter Bogdanovich during the past year (University of Minnesota) and Robert included seminars on Towne (University of Texas). back by diredors Arthur Hiller, Martha Coolidge, Bill Duke (photo), James Foley and Peter Bogdanovich in the Academy LiHle Theater. Later in the year, casting guru Joe Scully moderated a film casting seminar featuring Mike Fenton, Reuben Cannon, David Rubin and Elisabeth Leustig. The seminars both sold out, a situation Program Coordinator Mikel Kaufman has come to exped (though the week before she never quite believes it will happen).

2

(6) Robert Downey, Jr., Oscar­ nominated in 1992 for his 5 6 portrayal of the LiHle Tramp in CHAPLIN, was joined by Martin Landau, Norman Lloyd, Robert Boyle, Ernest Lehman and in remembering Chaplin, and AHred Hitchcock during "A Tribute to the British Expatriate in Hollywood."

(7) Producer Gale Anne Hurd, a member of the Nicholl Fellowship CommiHee, presented a fellowship at the November Nicholl dinner. This 7 year's Nicholl Fellows were Mikhaila Max Adams of Sandy, Utah; Steve Garvin of Los Angeles, and Charles Henrich and Glenn Levin of New York City.

(8) The Filmscapes Exhibition was a hands-on display of Art Diredor Rick Carter's work.

13 T H E BUS N E 5 5 o F THE A CAD E M Y

, STUDIO The first ne~ AcadelllY branch BUSINE S~ ONLY in 42 years was ok'd in February when the Board of Governors voted the roughly 130 visual effects mem­ who publish the Academy Players Directory ­ bers a branch of their own. The last was brought up to the physical and aes­ increase in the number of branches was in thetic standards found in the rest of the 1953, when the Administrators Branch was building. In the Players Directory, space­ created. It lasted for 17 years until it was saver shelves have replaced old shelving to absorbed into the Executives Branch in 1970. maximize storage space and computers The Short Films Branch of the Academy got have been installed at each workstation in a longer name last year when the Board of preparation for a transition to computer­ Governors changed the name to the Short ized production of the Directory. Films and Feature Animation Branch. Some The Annual Index to Motion Picture Credits, 150 animators who rarely work on short which released its 18th edition this year, animated films are members of the branch. also is moving in the direction of comput­ Deborah Cahn joined the Academy staff in erized access to the information it contains. This pharaoh-on-the-phone January in the newly-created position of set still of Yul Brynner Index Editor Byerly Woodward has been was included in the office manager and has consolidated the exploring software and equipment that will DeMille exhibition. kitchen, garage, maintenance, building soon enable sh ipment of an expanded ver­ operation, meeting set-up and shared sion of the Index as a computer disk. equipment functions into an efficient and Along the way, Woodward and Bill Gates, effective operation. the Academy's administrator of informa­ The last of the Academy'S office spaces to tion systems, have become the in-house undergo remodeling over the past five Internet access maestros, a nd have years was completed in June, when the 4th been responsible for the Academy ' s floor - housing the Academy Gallery, the launch into cyberspace . Our add ress? Special Events department and the staff http://www.ampas.o rg/ ampas/

The 1994-95 Board of Governors: (from left, front row) Fay Kanin, Sid Ganis, Arthur Hiller, Alan Bergman, Arthur Hamilton. (Second row) Frank Urioste, Norman Jewison, Jerry Wunderlich, Robert Daly, Richard Zanuck, June Foray, , Saul Bass, Don Hall, Conrad L. Hall. (Third row) , Haskell Wexler, Carl Bell, Roger Mayer, Jonathan Erland, Hal Kanter, Gregory Peck, Frank Pierson. Not shown: John A. Bonner, Robert F. Boyle, Bruce Broughton, Martha Coolidge, Allen Daviau, Cheryl Boone Isaacs, Kathleen Kennedy, Howard W. Koch, Frank Mancuso, Roddy McDowall, Donald C. Rogers, Tom Rolf, Arthur Schmidt, Albert Wolsky.

14 COM M T TEE 5

ACTORS BRANCH EXECUTIVE COMMITIEE GRANTS COMMITIEE Roddy McDowoll, Chair Delbert Mann, Chair ART DIRECTORS BRANCH EXECUTM INVESTMENT COMMITIEE COMMITTEE Arthur Hamilton, Chair Robert F. Boyle, Chair LONG-RANGE PLANNING COMMITIEE AWARDS RULES COMMITIEE Fay Kanin, Chair Allen Daviau, Chair MAKEUP AWARDS RULES COMMITIEE 67TH AWARDS GOVERNORS BALL COMMITIEE Leonard Engelman, Chair Alan Bergman, Chair MEMBERSHIP SCREENING COMMITIEES 67TH AWARDS PUBLIC RELATIONS COORDINATING COMMITIEE LOS ANGELES Marvin Levy, Chair David Chasman, Chair 67TH AWARDS REVIEW COMMITIEE LONDON Norman Jewison, Chair Charles Schneer, Chair CENTER OVERSIGHT COMMITIEE NEW YORK Saul Bass, Chair Arthur Manson, Chair CINEMATOGRAPHERS BRANCH EXECUTIVE MUSIC BRANCH EXECUTIVE COMMITIEE COMMITIEE Arthur Hamilton, Chair Haskell Wexler, Chair NICHOLL ENDOWMENT COMMITIEE COSTUME DESIGN AWARD RULES COMMITIEE Julian Blaustein, Chair Albert Wolsky, Chair PRODUCERS BRANCH EXECUTIVE DIRECTORS BRANCH EXECUTIVE COMMITIEE COMMITIEE Norman Jewison, Chair Richard D. Zanuck, Chair DOCUMENTARY AWAADS EXECUTM COMMITTEE PUBLIC RELATIONS BRANCH Walter Shenson, Chair EXECUTIVE COMMITIEE Cheryl Boone Isaacs, Chair EXECUTIVES BRANCH EXECUTIVE COMMITIEE Frank G. Mancuso, Chair SCIENTIFIC AND TECHNICAL AWARDS COMMITIEE FILM EDITORS BRANCH EXECUTIVE COMMITIEE Margaret O'Brien was thrilled in John A. Bonner, Chair February to get back the Tom Rolf, Chair long-missing miniature Oscar she SHORT FILMS AND FEATURE ANIMATION FINANCE COMMITIEE had been presented in 1944 as BRANCH EXECUTIVE COMMITIEE "outstanding child actress" of that Arthur Hamilton, Chair Carl Bell , Chair year. Two baseball memorabilia collectors had bought it at a swap FOREIGN LANGUAGE FILM AWARD SOUND BRANCH EXECUTIVE COMMITIEE meet and gave it back to her EXECUTIVE COMMITIEE Donald C. Rogers, Chair upon learning that it had been Fay Kanin, Chair stolen some 40 years earlier. STUDENT ACADEMY AWARDS GENERAL MEMBERSHIP COMMITIEE EXECUTIVE COMMITIEE Alan Bergman, Chair June Foray, Chair SUBCOMMITIEE ON AGENTS THEATER STANDARDS COMMITIEE Martha Luttrell, Chair John A. Bonner, Chair SUBCOMMITIEE ON CASTING VISUAL EFFECTS AWARD RULES COMMITIEE DIRECTORS Jonathan Erland, Chair Mike Fenton, Chair WRITERS BRANCH EXECUTIVE COMMITIEE SUBCOMMITIEE ON STUNT Fay Kanin, Chair COORDINATORS David Ellis, Chair

15 REP 0 R T o F NDEPENDENT Ace 0 U N TAN T 5 Combined Financial Statements

Price UUterhouse LLP •

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

In o ur 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, in all material respects, the financial position of the Academy of Motion Picture Arts and Sciences and the Academy Foundation at June 30, 1995 and 1994, and the results of their operations a nd the changes in their financial position for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibili­ ty of the Academy' s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing stan­ dards which require that we plan and perform the audit to obtain reasonable assurance about whether the finan­ cia l statements are free of material misstatement. An audit includes examining, on a test basis, evidence support­ ing the amounts and disclosures in the financial statements, assessing the accounting principles used and signifi­ cant estimates made by management, and evaluating the overall financial statement presentation. We believe that our a udits provide a reasonable basis for the opinion expressed above.

Los Angeles, Californ ia Septem ber 12, 1995

Com b ned Balance 5 h e e t

Assets June 30, 1995 1994

Cash $1,947,000 $1,257,100 Short-term investments 2,170,100 2,567,500 Accounts receivable, net 1,529,500 1,403,700 Prepaids and other assets 998,800 584,700 6,645,400 5,813,000

Long-term investments 24,517,100 19,301,700 Deferred rent expense, less accumulated amortization 770,100 801,700 Property, equipment and building improvements, less accumulated depreciation 15,991,300 16,241 ,100 Marga ret Herrick Library and Academy Film Archive collections, carried at no value

Total assets $47,923,900 $42,157,500

Liabilities and Equity

Accounts payable and accrued expenses $1 ,126,500 $2,018,000 Deferred income 1,559,200 3,007,800 Equity 45,238,200 37,131,700

Total liabilities and equity $47,923,900 $42, 157,500

The accompanying notes are an integral part of these combined financial statements. 16 Combined Statement o f Rev e n u e and E x pen 5 e 5 and C han 9 e 5 i n Equity

Year ended June 30, 1995 1994

Revenue - Academy Awards and related activities $18,499,300 $17,120,900 Playe rs Directory and other publications 1,107,600 1,168,700 Membership dues 1,097,500 1,065,900 Research library and other educational and cultural activities 459,400 565,000 Theater rentals 395,100 414,900 Investment and other income, net 3,747,900 510,900

25,306,800 20,846,300

Expenses - Academy Awards and related activities 7,962,100 6,868,300 Players Di rectory, membership, theater operations and public relations 2,050,500 2,432,300 Center for Motion Picture Study operations 2,593,800 2,373,900 Educational and cultural programs 944,600 906,500 General and administrative 4,864,600 4,403,500

18,415,600 16,984,500

Excess of revenue over expenses before endowment contributions 6,981,200 3,861,800

Center for Motion Picture Study endowment contributions 1,215,300 2,070,500

Excess of revenue over expenses 8,106,500 5,932,300

Equity at beginning of year 37,131,700 31,199,400

Equity at end of year $45,238,200 $37,131,700

The accompanying notes are an integral part of these combined financial statements.

Price Waterhouse partner Dan Lyle and manager Laura Hobart arrive at the Shrine with briefcases filled with the information a world is waiting to learn.

17 Com b ned Statement o f C han 9 e s

n F nan c a P 0 s t o n

Year ended June 30, 1995 1994 Cash was provided by: Excess of revenue over expenses $ 8,106,500 $ 5,932,300 Add items not affecting cash - Depreciation and amortization 838,900 873,900 Unrealized gain on investments (498,200) Increase in accounts receivable (125,800) (28,800) Increase in prepaids and other assets (414,100) (66,000) (Decrease) increase in accounts payable and accrued expenses (891,500) 1,318,300 (Decrease) increase in deferred income (1,448,600) 401 ,800

Cash provided by operations 5,567,200 8,431,500

Cash was used for: Purchases of investments, net 4,319,800 7,048,700 Additions to building improvements 75,900 1,256,900 Other additions to property and equipment 481,600 400,100

Cash used in investing activities 4,877,300 8,705,700

Net increase (decrease) in cash 689,900 (274,200)

Cash at beginning of year 1,257,100 1,531,300

Cash at end of year $ 1,947,000 $ 1,257,1 00

The accompanying notes are an integral part of these combined financial statements.

Not e s t 0 Com b ned F nan c a Statements

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLI CIES

Reporting entity

The accampanying cambined financial statements include the accounts of the Acodemy of Motion Picture Arts and Sciences (the Academy) and the Academy Foundation (the Foundation). All significant intercompany transactions have been eliminated, including donations by the Acodemy to the Foundotion's endowments (see Note 4). The Foundation, formed for the purpose of promoting and supporting educational ond culturol activities related to the motion picture industry, is related to the Academy in that the officers ond trustees of the Foundation are also members of the Acodemy's Board of Governors.

Recognition of revenue and expenses

Revenue and expenses ore recognized on the accrual basis. Domestic revenue from the annual Awards program is recognized upon broadcast and consists principally of license fees paid by Copitol Cities/ ABC, Inc. (ABC) for the exclusive worldwide television broodcast rights. Revenue from foreign exhibition is recognized based on gross receipts received from licensees and re ported to the Academy by ABC, net of distribution fees and expenses. The Academy has granted the Awards program broadcast rights to ABC through 2000. In the accompanying financial statements, revenue and expenses categorized as "Academy Awards and related activities" include the Awards program, Governors Ball , nominations screen­ ings and luncheon, and copyright/trademark protection .

Membership dues are paid on a ca lendar year basis and are recognized as income proportionately during the year; the portion of dues not yet recognized at June 30 is included in deferred income. Income from the sales of Pl ayers Directory listings is recognized when the respective issue is published. Amounts collected in advance of publishing are recorded as deferred income.

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 yet recognized as revenue is included in deferred income.

Investments

Investments at June 30, 1994 are recorded at cost (m arket value approximated $21,079,200), as it was management's policy to hold all securities until maturity. During fiscal 1995, the Academy changed its practices so as to maximize investment income. As a result, it occasionally becomes necessary to liquidate securities prior to their maturity dates. Effective June 30, 1995 investments are recorded at market value, and the resulting unrealized gain of $49B,200 is included in investment and other income. Investment income, along with realized gains and losses, amounted to $1,616,900 and $454,600 for the years ended June 30, 1995 and 1994, respectively.

Property, equipment and building Improvements

Bu ildings, building improvements, 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 building improvements, and three to ten years for furniture and equipment.

Margaret Herrick Library and Academy Film Archive

In accordance with accounting practices followed by similar nonprofit organizations, items donated to the Margaret Herrick Library and Academy Film Archive are carried at no value on the balance sheet. 18 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Income taxes

The Academy and the Foundotion are nonprofit orgonizotions determined by the Internol Revenue Service ond the Colifornia Franchise Tax Board ta be exempt from federal and state income taxes.

2. PROPERTY, EQUIPMENT AND BUILDING IMPROVEMENTS

Praperty, equipment and building impravements camprise the fallawing at June 30: 1995 1994

Land $ 644,800 $ 644,800 Building 3,707,000 3,707,000 Building impravements - Center for Motion Picture Study 6,587,200 6,575,400 Samuel Goldwyn Theoter ond Acodemy Little Theoter 4,967,800 4,967,800 Academy headquorters remodeling 1,963,300 1,899,300 Furniture, fixtures and equipment 3,928,500 3,706,000 Work in progress 287,300 28,100

22,085,900 21 ,528,400

Less accumulated depreciotion 6,094,600 5,287,300

$ 15,991 ,300 $ 16,241 ,100

The Foundation entered into an ogreement with the City of Beverly Hills to lease property known as the Waterwarks which naw houses the Center far Matian Picture Study (the Center), including the Margaret Herrick Library and Academy Film Archive. Deferred rent expense, representing amounts which were contrac­ tually obligated to be paid in advance of the lease term, are being amortized over thirty years. Further, the agreement provided that the Foundation make sub­ stantial improvements to the property; amounts expended have been classified as building improvements.

3. DEFERRED INCOME

Deferred income, representing payments received , accrued or awarded prior to the performonce of services or the earning of income, comprises the following at June 30: 1995 1994

Players Directory $ 540,700 $ 532,200 Membership dues 544,200 530,700 Nicholl Endowment 409,200 408,100 Center endowment interest 1,468,200 Other 65,100 68,600

$ 1,559,200 $ 3,007,800

Deferred income reloting to the Center Endowment ot June 30, 1994, represented interest earned on endowment fund contributions (see Note 4).

Estoblished in 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, including interest earned ond registration fees recei ved, net of expenses incurred to dote in operating and promoting the program.

4. CENTER FOR MOTION PICTURE STUDY ENDOWMENT FUND

In 1989 the Foundation began a campaign to establish the Center for Motion Picture Study Endowment Fund (the Endowment). Contributions received are to remain in the Endowment in perpetuity. Effective July 1, 1994, income earned on Endowment contributions has become part of the Endowment; such amounts had previously been recorded as deferred income. Cumulotive interest eorned to thot dote of $1,468,200 hos olso been odded to the Endowment and is included in investment income for the year ended June 30, 1995. These omounts, along with any future contributions ond interest eorned, will become a permanent part of the corpus until such time as annual interest income is needed to help fund the operations of the Center. Donations are recorded as income in the period in which they are received . During the year ended June 30, 1995 the Academy contributed $2.0 million to the Endowment. Through June 30, 1995, the Foundation received restricted cash contributions to the Endowment of $12.3 million and interest of $2.1 million. In addition, the Foundation has received written and oral pledge commitments for future contributions approximating $3.3 million to date, including bequests and assi gnments of life insurance benefits.

5. RETIREMENT PLAN

The Academy maintains an insured noncontributory defined benefit plan covering all full-time employees over 21 years of age who have completed ane year of service. Pension benefits under the plan are based on years of credited service and salary levels. The Academy annually contributes amounts to on insurance company that is the plan trustee. Such amounts are actuarially determined to provide the pion with sufficient ossets to meet future benefit payment require­ ments . Plan assets are comprised primarily of fixed income and money market funds.

Net pension expense included the following components for the year ended June 30: 1995 1994

Service cost - benefits earned during the period $ 291 ,600 $ 317,800 Interest cost on proiected benefit obligation 226,300 200,400 Actual return on plan assets (267,800) (258,400) Net amortization ond deferral (15,600) 41 ,300

Net periodic pension expense $ 234,500 $ 301 , 100

The following table summarizes the funded stotus of the plan and the reloted amount recognized in the combined balance sheet os of June 30: 1995 1994 Actuarial present value of benefit obligations: Accumulated benefit obligation, including vested benefits of $2,227,600 ond $2,076,200 os of June 30, 1995 ond 1994, respectively $ 2,247,800 $ 2,092,100

Proiected benefit obligation $ 3,459,200 $ 3,210,800 Plan ossets ot foir value 3,978,100 3,515,300

Plan ossets in excess of proiected benefit obligation 518,900 304,500 Unrecognized net loss 738,700 315,800 Unrecognized prior service cost (579,100) (19,500) Unrecognized net asset ot July 1, 1994 and 1993 (184,700) (216,100)

Prepaid pension cost $ 493,800 $ 384,700

The 1995 ond 1994 actuarial computations assumed a discount rate of 7.5% at June 30, 1995, 6.5% at June 30, 1994 ond an expected long-term return on assets of 7.5%. Annual compensation level increases were estimated to be opproximotely 6.0% ond 5.5% for the years ended June 30,1995 and 1994, respec­ tively, based on the ages of current employees. Unrecognized prior service costs a re being amortized on a straight-line basis over 12.25 years, representing the 19 average remaining service period of employees expected to receive benefits under the plan. ADM N 5 T RAT o N

EXECUTIVE DIRECTOR Bruce Davis

ISTRATION DIRECTOR

AWARDS COORDINATOR Patrick E. Stockstill PROGRAM COORDINATOR: NICHOLL FELLOWSHIPS AND GRANTS Greg Beal PROGRAM CO,ORDI AND SEM SPECIAL , DOLBY