The Thomas J. Watson Foundation

Return of Private Foundation OMB No 1545-0052 Form 990-PF or Section 4947( a)(1) Nonexempt Charitable Trust Treated Foundation 2012 Department of the Treasury as a Private Internal Revenue Service Note. The foundation may be able to use a copy of this return to satisfy state reporting requirements o For calendar year 2012 or tax year beginning 0 6 / 01 . 2012 , and ending 05/31.20: N Name of foundation A Employer identification number U THOMAS J WATSON FOUNDATION - PRIN P11340 13-6038151 v- Number and street ( or P 0 box number if mail is not delivered to street address) Room/suite B Telephone number (see instructions) CL' Cl- 10 S DEARBORN IL1-0117 212- 464- City or town , state, and ZIP code r F^• C If exemption application is • pending, check here 0' El CHICAGO , IL 60603 G Check all that apply: Initial return Initial return of a former public charity D 1 Foreign organizations , check here . ► El Final return Amended return 2 Foreign organizations meeting the q 85% test, check here and attach ► Address chan ge Name chan g e computation . H Check type of organization : X Section 501 ( c)(3) exempt private foundation E If private foundation status was terminated Section 4947 ( a)(1) nonexem pt charitable trust Other taxable p rivate foundation under section 5071b111 11A1, check here . ► I Fair market value of all assets at end Accounting method : Cash Accrual F If the foundation is in a 60-month termination q

of year (from Part ll, col. (c), line Other (specify) under section 5071b111IIBl,check here . ► 16) ► $ 88 202 077. (Part 1, column (d) must be on cash basis.) (dl Disbursements Analysis of Revenue and Expenses (The (a) Revenue and (b) Net investment (c) Adjusted net for charitable total of amounts in columns (b), (c), and (d) expenses per may not necessarily equal the amounts in income income purposes books column (a) (see instructions)) (cash basis only)

1 Contributions Ifts, grants, etc, received ( attach schedule) . if the foundation is not required to Check X 2 ► attach Sch B 3 Interest on savings and temporarycash investments 4 Dividends and interest from securities , . . 1 , 049 , 232. 1 , 040 , 840. 5a Gross rents ...... b Net rental income or (loss) y 6a Net gain or (loss) from sale of assets not on line 10 1 , 124 , 100. b Gross sales price for all U assets on line 6a 13,195,515 . w 7 Capital gain net income (from Part IV, line 2) . 1 , 124 , 100. cc 2 0 14 8 Net short-term capital gain ...... 9 Income modifications ...... 10 a Gross sales less returns and allowances b Less Cost of goods sold , °.-k c Gross profit or (loss) (attach schedule) ,

Ni 11 Other income ( attach schedule ) 629 823. 1 STMT 1' 12 Total . Add lines 1 throu gh 11 ...... 2 , 173 961

Qq 13 Compensation of officers, directors , trustees , etc. . 201 , 928 192 332. Q 14 Other employee salaries and wages . . . 695 , 465 f0 695 465. CL_ 15 Pension plans, employee benefits , • , , 215 , 220 [ON 215 220. ® d 16a Legal fees ( attach schedule ) . . ,STMT, 2 31 , 696 f0 31 , 696. X LLI b Accounting fees ( attach schedule) . . , Z c Other professional fees ( attach schi t V. 3 , 601 , 489 17 Interest ...... 121 18 Taxes (attach schedule) (see mstructlons)U 4 I'. 4 26 , 028 •5E 19 Depreciation (attach schedule) and depletion . 20 Occupancy ...... 167 , 249 167 249. 21 Travel , conferences, and meetings , , , , 182 , 369 TONE 182 369. 22 Printing and publications ...... 7 , 078 [ON 7 , 078. 23 Other expenses (attach schedule) $TNI2', 5 . 162 , 480 162 480. 2 24 Total operating and administrative expenses. C Add lines 13 through 23 ...... 2 , 291 , 123 637.234 f0 1 , 653 , 889. 25 Contributions , gifts, grants paid . . . . . 1 , 259 , 661 1 , 259 , 661. 7 0 2 , 913 , 550. 27 Subtract line 26 from line 12 a Excess of revenue over expenses and disbursements , -1 , 376 , 823. b Net investment income ( if negative, enter -0-) 1 , 52 c Adjusted net income (if neg ative, enter -0-11 . - .ISA For Paperwork Reduction Act Notice, see instructions. Form 990-PF (2012) 2E1410 1 000 BLD551 501G 04/14/2014 15:53:21 P11340000 2 C,Iy 14 - 11.6

Form 990-PF (2012) 13-6038151 Page 2 Attached schedules and amounts in the Beginning of year End of year Balance Sheets description column should be for end-of-year amounts only ( See instructi ons) (a) Book Value ( b) Book Value (c) Fair Market Value 1 Cash - non-interest-bearing ...... 12 , 343. 73 640. 73 , 640 2 Savings and temporary cash investments ...... 715 521. 2 , 968 , 344 . 2 , 968 , 344

3 Accounts receivable ► ------Less. allowance for doubtful accounts ► ------4 Pledges receivable ► ------Less. allowance for doubtful accounts ► ------5 Grants receivable ...... 6 Receivables due from officers , directors , trustees, and other disqualified persons ( attach schedule) ( see instructions) . , , 7 Other notes and loans receivable ( attach schedule) ► ------___,______Less allowance for doubtful accounts NONE ► ------to 8 Inventories for sale or use . , W 9 Prepaid expenses and deferred charges . . 10 a Investments - US and state government obligations ( attacSMul4 .. 10 750 322. 2 , 999 , 406. 3 , 000 , 000 b Investments - corporate stock ( attach schedule ) , $TW 7 33 275 135. 29 396 685. 68 , 282 , 372 c Investments - corporate bonds (attach schedule ). STMT 489 524. 8 , 609 964. 8 , 823 , 127 11 Investments - land, buildings, ► and equipment basis ------_ ------Less accumulated depreciation ► ( attach sch ed u l e ) ------12 Investments - mortgage loans ...... 13 Investments - other (attach schedule ) , , , , , , STMT ,9, 2. 4 , 098 , 460. 5 , 054 , 592 14 Land, buildings,and ► equipment. basis ------_ - Less accumulated depreciation ► ( attach sched u le ) ------) 2. 2 15 Other assets (describe ► SEE ATTACHED ------4 , 199 , 509. 16 Total assets ( to be completed by all filers - see the instructions Also, see page 1, item 1) .. 49 442 356. 48 146 501. 88 , 202 , 077 17 Accounts payable and accrued expenses ...... 18 Grants payable ...... 19 Deferred revenue ...... 20 Loans from officers, directors , trustees, and other disqualified persons 21 Mortgages and other notes payable ( attach schedule ) . . . . 22 Other liabilities describe ( ► ------

23 Total liabilities ( add lines 17 through 22) . NO Foundations that follow SFAS 117, check here ► and complete lines 24 through 26 and lines 30 and 31. N m 24 Unrestricted ......

cc 25 Temporarily restricted ...... CIO 26 Permanently restricted ...... Foundations that do not follow SFAS 117, check here and complete lines 27 through 31. Do- y 27 Capital stock, trust principal , or current funds . . . . . 49 442 356. 48 , 146 , 501 . 28 Paid-in or capital surplus, or land, bldg , and equipment fund CA 4 29 Retained earnings, accumulated income , endowment, or other funds m 30 Total net assets or fund balances (see instructions ). 49 442 356. 48 146 501. Z 31 Total liabilities and net assets/fund balances (see instructions ) ...... 49 442 356. 48 146 501. Anal sis of Changes in Net Assets or Fund Balances 1 Total net assets or fund balances at beginning of year - Part II, column ( a), line 30 ( must agree with end-of-year figure reported on prior year's return ) , , , , , , , , , , , , , , , , , , , , , , ,,, 1 49 442 356. 2 Enter amount from Part I, line 27a 2 -1 , 376 , 823. 3 Other increases not included in line 2 ( itemize) PRIOR PERIOD ADJUSTMENT 3 80 968. ►------4 Add lines 1 , 2, and 3 4 48 146 501. 5 5 Decreases not included in line 2 ( itemize) ► 6 Total net assets or fund balances at end of ear ( line 4 minus line 5) - Part II column ( b), line 30 6 48 146 501. Form 990-PF (2012)

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2E1420 1 000 BLD551 501G 04/14/2014 15:53:21 P11340000 15 13-6038151 Form 990-PF(2012) Page 3 FMI^ Capital Gains and Losses or Tax on Investment Income How (c) Date Date sold ( a) List and describe the kind ( s) of property sold (e g , real estate , acquued acquiredY, ( d) ( (mo ,day, yr ) 2-sto ry brick warehouse, or common stock, 200 shs. MLC Co ) D')-- urchasDoationn mo , da y r ) la PUBLICLY TRADED SECURITIES b c d e (f) Depreciation allowed ( g) Cost or other basis ( h) Gain or (loss) ( e) Gross sales price ( or allowable ) plus expense of sale ( e) plus ( f) minus (g) a 13 195 515. 12 071 408. 1 , 124 , 107. b c d e Com p lete onl y for assets showin g ain in column ( h) and owned b the foundation on 12 / 31/69 ( I) Gains ( Col (h) gain minus (j) Adjusted basis ( k) Excess of col ( i) col. (k), but not less than -0-) or (i) F.M V as of 12/31 / 69 as of 12 / 31/69 over col (j), if any Losses (from col (h)) a 1 , 124 , 107. b c d e If gain , also enter in Part I, line 7 2 Capital gain net income or (net capital loss) { If (loss ), enter -0- in Part I, line 7 } 2 1 , 124 , 107. 3 Net short-term capital gain or ( loss) as defined in sections 1222(5 ) and (6): If gain , also enter in Part I, line 8, column ( c) (see instructions ) If (loss ), enter -0- in 1 Part 1,line 8 ...... J 3 Qualification Under Section 4940(e ) for Reduced Tax on Net Investment Income (For optional use by domestic private foundations subject to the section 4940(a) tax on net investment income.)

If section 4940(d)(2) applies, leave this part blank.

Was the foundation liable for the section 4942 tax on the distributable amount of any year in the base period ? Yes © No If "Yes," the foundation does not qualify under section 4940 ( e). Do not complete this part. 1 Enter the a pp ro p riate amount in each column for each year; see the instructions before makin g an entries.

Base perriiodyears Adj usted quali fying (col ( b) divided by col (c)) 2011 2 , 810 , 135. 70 011 722. 0.040138 2010 2 , 631 , 316. 65 820 960. 0.039977 2009 2 , 466 , 436. 59 980 688. 0.041121 2008 3 , 656 151. 55 550 924. 0.065816 2007 3 , 584 , 023. 76 916 886. 0.046596

2 Total of line 1 , column (d) 2 0.233648 3 Average distribution ratio for the 5-year base period - divide the total on line 2 by 5 , or by the number of years the foundation has been in existence if less than 5 years ...... 3 0 . 046730

4 Enter the net value of noncharitable-use assets for 2012 from Part X, line 5 , , , , , , , , , , 4 78 , 022 , 660.

5 Multiply line 4 by line 3 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,, 5 3 , 645 , 999.

6 Enter 1 % of net investment income ( 1%of Part I, line 27b) , , , , , , , , , , , , , , , , , , , , 6 15 , 285.

7 Add lines 5 and 6 7 3 , 661 , 284.

8 Enter qualifying distributions from Part XII, line 4 , , , , , , 8 2 , 913 , 550. If line 8 is equal to or areater than line 7 . check the box in Part VI. line 1b . and complete that Dart usina a 1% tax rate . See the Part VI instructions. JSA Form 990-PF (2012) 2E1430 1 000 BLD551 501G 04/14/2014 15:53:21 P11340000 16 - fA

Form 990-PF (2012) 13-6038151 Page 4 UTM Excise Tax Based on Investment Income ( Section 4940 ( a), 4940 ( b), 4940 ( e), or 4948 - see instructions)

la Exempt operating foundations described in section 4940 ( d)(2), check here ► and enter " N/A" on line 1 . . . Date of ruling or determination letter ------(attach copy of letter if necessary - see instructions) b Domestic foundations that meet the section 4940 ( e) requirements in Part V, check 1 30 , 571. q here ► and enter 1% of Part I , line 27b , , , , , , , , , , , , , , , , , , , , , , , c All other domestic foundations enter 2 % of line 27b. Exempt foreign organizations enter 4% of Part I, line 12, col. M. 2 Tax under section 511 (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-) , , , 3 Add lines 1 and 2 ...... 0.571 4 Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only Others enter -0-) , , ,

5 Tax based on investment income. Subtract line 4 from line 3. If zero or less, enter -0...... 6 Credits/ Payments a 2012 estimated tax payments and 2011 overpayment credited to 2012 , , , , 6a 37 , 438 b Exempt foreign organizations - tax withheld at source ...... 6b NON] c Tax paid with application for extension of time to file (Form 8868) ...... 6c NON] d Backup withholding erroneously withheld ...... 6d 7 Total credits and payments Add lines 6a through 6d ...... 8 Enter any penalty for underpayment of estimated tax Check here ^ if Form 2220 is attached ...... 9 Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed ...... 1 10 Overpayment . If line 7 is more than the total of lines 5 and 8, enter the amount overpaid . . . . . _ 1 11 Enter the amount of line 10 to be Credited to 2013 estimated tax ► 6, 867 Refunded 0 Statements Reg arding Activities la During the tax year, did the foundation attempt to influence any national, state , or local legislation or did it participate Yes No or intervene in any political campaign? ...... 1a X b Did it spend more than $100 during the year ( either directly or indirectly ) for political purposes ( see Instructions for the definition ) ? ...... lb X If the answer is "Yes " to la or 1b, attach a detailed description of the activities and copies of any materials published or distributed by the foundation in connection with the activities. _- c Did the foundation file Form 1 120-POL for this year? ...... 1c X d Enter the amount ( if any) of tax on political expenditures ( section 4955 ) imposed during the year-

(1) On the foundation ► $ ( 2) On foundation managers. ► $ e Enter the reimbursement ( if any) paid by the foundation during the year for political expenditure tax imposed on

foundation managers ► $ 2 Has the foundation engaged in any activities that have not previously been reported to the IRS? ...... ' 2 X If 'Yes," attach a detailed description of the activities. 3 Has the foundation made any changes, not previously reported to the IRS , in its governing instrument, articles of incorporation, _ or bylaws , or other similar instruments? If "Yes," attach a conformed copy of the changes ...... 3 X 4a Did the foundation have unrelated business gross income of $1 , 000 or more during the year? ...... 4a X b If "Yes," has it filed a tax return on Form 990-T for this year7 ...... 4b 5 Was there a liquidation , termination , dissolution , or substantial contraction during the year? ...... 5 X If "Yes," attach the statement required by General Instruction T. 6 Are the requirements of section 508(e ) ( relating to sections 4941 through 4945 ) satisfied either: • By language in the governing instrument, or -^ • By state legislation that effectively amends the governing instrument so that no mandatory directions that conflict with the state law remain in the governing instrument? ...... 6 X 7 Did the foundation have at least $ 5,000 in assets at any time during the year? If ' Yes,"complete Part 11, col (c), and Part XV 7 X

8a Enter the states to which the foundation reports or with which it is registered ( see instructions) ►

b If the answer is "Yes" to line 7 , has the foundation furnished a copy of Form 990-PF to the Attorney General ( or designate) ___ _ of each state as required by General Instruction G?lf'No," attach explanation ...... 8b X 9 Is the foundation claiming status as a private operating foundation within the meaning of section 4942 (j)(3) or _ 4942 (1)(5) for calendar year 2012 or the taxable year beginning in 2012 ( see instructions for Part XIV ) 7 If "Yes,' complete Part XIV ...... 9 X 10 Did any persons become substantial contributors during the tax year? If "Yes," attach a schedule listing their names and addresses ...... 10 X Form 990-PF (2012)

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Form 990-PF (2012) 5 Statements Reg arding Activities (continued) 11 At any time during the year, did the foundation , directly or indirectly, own a controlled entity within the meaning of section 512lbl (13)? If "Yes," attach schedule ( see instructions ...... 11 X 12 Did the foundation make a distribution to a donor advised fund over which the foundation or a disqualified person had advisory privileges? If "Yes," attach statement ( see instructions ) ...... 12 X 13 Did the foundation comply with the public inspection requirements for its annual returns and exemption application? . . . . 13 X Website address WATSONFELLOWSHIP.ORG ►------14 The books are in care of CHASE BANK, NA ______Telephone no. ► __866) 888_5157_ -______Located at ► 10 S DEARBORN ST; IL1-0117 CHICAGO IL ZIP+4 ► 60603 q 15 Section 4947( a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041 - Check here ...... - . . . . . ► and enter the amount of tax-exempt interest received or accrued during the year ...... ► 15 16 At any time during calendar year 2012 , did the foundation have an interest in or a signature or other authority Yes No over a bank , securities , or other financial account in a foreign country? ...... 16 X See the instructions for exceptions and filing requirements for Form TD F 90-22 1 If "Yes," enter the name of the forei g n country ► Statements Reg arding Activities for Which Form 4720 May Be Req uired File Form 4720 if any item is checked in the "Yes" column, unless an exception applies. Yes No la During the year did the foundation (either directly or indirectly). (1) Engage in the sale or exchange, or leasing of property with a disqualified person? ...... q Yes No (2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from) a disqualified person? ...... Yes X No (3) Furnish goods, services, or facilities to (or accept them from) a disqualified person?...... Yes PX1 (4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person? ...... X Yes No (5) Transfer any income or assets to a disqualified person (or make any of either available for the benefit or use of a disqualified person)? ...... q Yes No (6) Agree to pay money or property to a government official? ( Exception . Check "No" if the foundation agreed to make a grant to or to employ the official for a period after termination of government service, if terminating within 90 days) ...... q Yes No b If any answer is "Yes" to la(1)-(6), did any of the acts fail to qualify under the exceptions described in Regulations section 53 4941(d)-3 or in a current notice regarding disaster assistance (see instructions)? ...... lb X

Organizations relying on a current notice regarding disaster assistance check here ...... ► c Did the foundation engage in a prior year in any of the acts described in la, other than excepted acts, that were not corrected before the first day of the tax year beginning in 20127 ...... 1c X 2 Taxes on failure to distribute income (section 4942) (does not apply for years the foundation was a private operating foundation defined in section 4942(j)(3) or 4942(j)(5)) a At the end of tax year 2012, did the foundation have any undistributed income (lines 6d and 6e, Part XIII) for tax year(s) beginning before 2012? ...... Yes q No ---2011-_- ,------,------,------If "Yes," list the years ► b Are there any years listed in 2a for which the foundation is not applying the provisions of section 4942(a)(2) (relating to incorrect valuation of assets) to the year's undistributed income? (If applying section 4942(a)(2) to all years listed, answer "No" and attach statement - see instructions.) ...... 2b X c If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here ► -_--2011______3a Did the foundation hold more than a 2% direct or indirect interest in any business enterprise at any time during the year? ...... q Yes No b If "Yes," did it have excess business holdings in 2012 as a result of (1) any purchase by the foundation or disqualified persons after May 26, 1969; (2) the lapse of the 5-year period (or longer period approved by the Commissioner under section 4943(c)(7)) to dispose of holdings acquired by gift or bequest; or (3) the lapse of the 10-, 15-, or 20-year first phase holding period? (Use Schedule C, Form 4720, to determine if the foundation had excess business holdings in 2012.) ...... 3 4a Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes? ...... 4a b Did the foundation make any investment in a prior year (but after December 31, 1969) that could jeopardize its __ charitable ouroose that had not been removed from ieooardv before the first day of the tax year beqinninq in 20127 • • 41b Form 990-PF (2012)

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Form 990-PF (2012) 13-6038151 Page 6 Statements Regarding Activities for Which Form 4720 May Be Required (continued) 5a During the year did the foundation pay or incur any amount to

(1) Carry on propaganda , or otherwise attempt to influence legislation ( section 4945 (e))? ...... El Yes No (2) Influence the outcome of any specific public election ( see section 4955 ), or to carry on, directly or indirectly, any voter registration drive? ...... Yes X No (3) Provide a grant to an individual for travel, study, or other similar purposes ?...... B Yes X No (4) Provide a grant to an organization other than a charitable , etc, organization described in section 509 ( a((1), (2), or ( 3), or section 4940 ( d)(2)? (see instructions ) ...... Yes DR] No (5) Provide for any purpose other than religious, charitable, scientific, literary, or educational purposes , or for the prevention of cruelty to children or animals? ...... 0 Yes a No b If any answer is "Yes" to 5a ( 1)-(5), did any of the transactions fail to qualify under the exceptions described in Regulations section 53 4945 or in a current notice regarding disaster assistance ( see instructions ) ? ...... 5b

Organizations relying on a current notice regarding disaster assistance check here ...... ► c If the answer is "Yes" to question 5a(4), does the foundation claim exemption from the tax because it maintained expenditure responsibility for the grant ? ...... Yes F1 No If "Yes," attach the statement required by Regulations section 53 4945-5(d) 6a Did the foundation , during the year, receive any funds, directly or indirectly , to pay premiums on a personal benefit contract? ...... El Yes No b Did the foundation , during the year, pay premiums, directly or indirectly, on a personal benefit contract? ...... 6b X If "Yes" to 6b, file Form 8870 7a At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction? Yes IF-viJ.I No b If "Yes," did the foundation receive an y p roceeds or have any net income attributable to the transaction? 7b Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, nnrd Cnntrnrtnrc 1 List all officers. directors. trustees. foundation manaaers and their compensation (see instructions). (b) Title, and average ( c) Compensation (d) Contributions to (e) Expense account, (a) Name and address hours per week ( If not paid , employee benefit plans other allowances devoted to p osition enter -0-) and deferred com p ensation DAVID MCKINNEY ADV COMM MEM C/O JPMORGAN CHASE BK, 270 PARK AVE NEW YORK , NY 100 40 10 , 000. - 0- - 0 - JPMORGAN CHASE_BANK,_NA ______TRUSTEE 10 S DEARBORN ST; IL1-0117 , CHICAGO , IL 60603 30 191 928. ------

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L Compensation of live Highest-paid employees (other than those included on tine 1 - see instructions). it none, enter "NONE." d) (b) Title, and average ( Contributionsto employee benefit (e) Expense account, (a) Name and address of each employee paid more than $ 50, 000 hours per week ( Compensation c) deferred other allowances devoted to position plans and compensation MICHELLE AMAR PROGRAM MANAGER CHICAGO , IL 60603 40 H 77 , 033. 20,274. NONE JENNIFER BETANCOURT ASSOC DIRECTOR CHICAGO , IL 60603 40 H 91 , 030. 17 , 210. CHRIS KASABACH------DIRECTOR CHICAGO , IL 60603 40 H 225 , 636 57 , 742. JENNIFER L LUDOVICI ASST DIRECTOR CHICAGO , IL 60603 40 H 102 521. 18 , 280. FRANK WOLF ------DIRECTOR CHICAGO , IL 60603 40 H 163 020. 23 , 112. Total number of other em p loyees paid over $ 50, 000 . ► NONE Form 990-Pi- (2012)

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2E 1460 1 000 BLD551 501G 04/14/2014 15:53:21 P11340000 19 - 13-6038151 Form 990-PF (2012) Page 7 Information About Officers, Directors, Trustees, Foundation Managers , Highly Paid Employees, and Contractors (continued) 3 Five hiahest-naid independent contractors for orofessional services ( see instructions ). If none - enter "NONE." (a) Name and address of each person paid more than $50,000 (b) Type of service (c) Compensation NONE ------NONE ------

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Total number of others receivin g over $50, 000 for p rofessional services . . ► NONE Summary of Direct Charitable Activities

List the foundation ' s four largest direct charitable activities during the tax year Include relevant statistical information such as the number of Expenses organizations and other beneficiaries served , conferences convened , research papers produced, etc 1NZ4------

2 ------

3 ------

4 ------

Summary of Program-Related Investments ( see instructions) Describe the two largest program-related investments made by the foundation during the tax year on lines 1 and 2 Amount 1NI4------

2 ------

All other program-related investments See instructions. 3NONE------

Total. Add lines 1 throu g h 3 . ► Form 990-PF (2012)

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2E1465 1 000 BLD551 501G 04/14/2014 15:53:21 P11340000 20 - Form 990-PF (2012) 13-6038151 Page 8 Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations, see instructions.) 1 Fair market value of assets not used ( or held for use) directly in carrying out charitable, etc, purposes: a Average monthly fair market value of securities ...... la 77 678 961. b Average of monthly cash balances , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 1b 1 , 531 , 861. c Fair market value of all other assets (see instructions ) ...... Ic NONE d Total ( add lines 1a , b, and c) , , , , , , , , , , , , , , , , , , , , , , , d 79 , 210 , 822. e Reduction claimed for blockage or other factors reported on lines la and 1c (attach detailed explanation) ,, , ,, , , , , , , , , , ,, , , , le 2 Acquisition indebtedness applicable to line 1 assets ...... 2 NONE 3 Subtract line 2 from line td ...... 3 79 , 210 , 822. 4 Cash deemed held for charitable activities . Enter 1 1 / 2% of line 3 (for greater amount, see instructions ) ...... _ . 4 1 , 188 , 162. 5 Net value of noncharitable -use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4 5 78 , 022 , 660. 6 Minimum investment return . Enter 5 % of line 5 6 3 , 901 , 133. Distributable Amount (see instructions) (Section 4942(j)(3) and (j)(5) private operating found ati o n s and certa i n foreig n organizations check here ► n and do not complete this part.) 1 Minimum investment return from Part X , line 6 ...... 2a Tax on investment income for 2012 from Part VI, line 5 , , , . , _ 12a 30,571. b Income tax for 2012 . (This does not include the tax from Part VI.) 2b c Add lines 2a and 2b ...... 2c 30.571 3 Distributable amount before adjustments . Subtract line 2c from line 1 ...... 70,562 4 Recoveries of amounts treated as qualifying distributions ...... NON 5 Add lines 3 and 4 ...... 70,562 6 Deduction from distributable amount ( see instructions) , , , , , , , , NON 7 Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII, line 1 ...... 1 7 70.562 Qualifying Distributions (see instructions)

1 Amounts paid (including administrative expenses) to accomplish charitable, etc., purposes: _ a Expenses, contributions, gifts, etc. -total from Part I, column (d), line 26 , , , , , , , , , , , , , , , , , la 2 , 913 , 550. b Program-related investments -total from Part IX-B lb 2 Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc., purposes...... 2 NUNS 3 Amounts set aside for specific charitable projects that satisfy the: a Suitability test (prior IRS approval required) , _ _ . .. _ 3a NONE b Cash distribution test (attach the required schedule) , , , , , , , , , , , , , , , , , , ,, , , , , , 3b NONE 4 Qualifying distributions. Add lines la through 3b. Enter here and on Part V, line 8, and Part XIII, line 4 , , , , , , 4 2 , 913 , 550. 5 Foundations that qualify under section 4940(e) for the reduced rate of tax on net investment income. Enter 1%of Part I, line 27b (see instructions) ...... 5 N /A 6 Adjusted qualifying distributions . Subtract line 5 from line 4 , , , , , , ,, , , ,, , , , , , , , , , , , 6 2 , 913 , 550. Note. The amount on line 6 will be used in Part V, column (b), in subsequent years when calculating whether the foundation qualifies for the section 4940(e) reduction of tax in those years. Form 990-PF (2012)

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2E 1470 1 000 BLD551 501G 04/14/2014 15:53:21 P11340000 21 - 13-6038151

Form 990-PF ( 2012) Page 9 Undistributed Income ( see instructions) (a) (b) (c) (d) Corpus Years prior to 2011 2011 2012 1 Distributable amount for 2012 from Part XI, line 7 ...... 3 , 870 562. 2 Undistributed income, if any, as of the end of 2012 a Enter amount for 2011 only ...... , 3 , 138 , 335. b Total for prior years 20 10 20,20 NO 3 Excess distributions carryover, if any, to 2012 a From 2007 NONE b From 2008 , , , NONE c From 2009 NONE d From 2010 , , . NONE e From 2011 NONE f Total of lines 3a through e , . . . , , , , . . . NON 4 Qualifying distributions for 2012 from Part XII, line4: ► $ 2,913,550. a Applied to 2011, but not more than line 2a 2 , 913 , 550 . b Applied to undistributed income of prior years (Election required - see instructions ) ...... c Treated as distributions out of corpus ( Election required - see instructions ) , , , , , , , .. NON d Applied to 2012 distributable amount . , , NONE e Remaining amount distributed out of corpus NON 5 Excess distributions carryover applied to 2012 . NON NONE (If an amount appears in column (d), the same amount must be shown in column (a) ) 6 Enter the net total of each column as indicated below: a Corpus Add lines 3f, 4c, and 4e . Subtract line 5 NON b Prior years' undistributed income . Subtract line 4b from line 2b ...... NON c Enter the amount of prior years ' undistributed income for which a notice of deficiency has been issued , or on which the section 4942 ( a) tax has been previously assessed ...... NO d Subtract line 6c from line 6b Taxable amount - see instructions , , NO e Undistributed income for 2011 Subtract line 4a from line 2a. Taxable amount - see instructions ...... 224 785.

f Undistributed income for 2012 . Subtract lines 4d and 5 from line 1. This amount must be distributed in 2013 ...... 3 , 870 , 562 . 7 Amounts treated as distributions out of corpus to satisfy requirements imposed by section 170(b)( 1)(F) or 4942 ( 8)(3) (see instructions) , NON 8 Excess distributions carryover from 2007 not applied on line 5 or line 7 ( see instructions) , NONE : 9 Excess distributions carryover to 2013. Subtract lines 7 and 8 from line 6a . , . , , NONE : 10 Analysis of line 9 a Excess from 2008 . . NONE b Excess from 2009 . . NONE c Excess from 2010 . . NONE d Excess from 2011 . . NONE e Excess from 2012 ... NONE Form 990-PF (2012)

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2E1480 1 000 BLD551 501G 04/14/2014 15:53:21 P11340000 22 - Form 990-PF (201 2) -6038151 Page 10 'M Private Operating Foundations (see instructions and Part VII-A, question 9) NOT APPLICABLE 1a If the foundation has received a ruling or determination letter that it is a private operating foundation, and the ruling is effective for 2012, enter the date of the ruling , _ _ . • • • • , , . • • ► b Check box to indicate whether the foundation is a private operating foundation described in section 4942(1)(3) or I I 4942(1)(5) Tax year Prior 3 years 2a Enter the lesser of the ad- (e) Total justed net income from Part ( a) 2012 (b) 2011 (c) 2010 (d) 2009 I or the minimum investment return from Part X for each year listed • • . . _ _ .

b 85% of line 2a . . . . .

C Qualifying distributions from Part XII, line 4 for each year listed .

d Amounts included in line 2c not used directly for active conduct of exempt activities . . . . . e Qualifying distributions made directly for active conduct of exempt activities Subtract line 2d from line 2c • • • • • • 3 Complete 3a, b, or c for the alternative test relied upon a Assets' alternative test - enter

(1) Value of all assets . (2) Value of assets qualifying under section 4942(1)(3)(B)(i). . . . . b Endowment' alternative test- enter 2/3 of minimum investment return shown in Part X, line 6 for each year listed • •

C Support' alternative test - enter

(1) Total support other than gross investment income (interest, dividends, rents, payments on securities loans (section 512(a)(5)), or royalties) • , • • , • (2) Support from general public and 5 or more exempt organizations as provided in section 4942 (i)(3)IB)(ni) ...... (3) Largest amount of support from an exempt organization • • • • • (4) Gross investment income . Supplementary Information (Complete this part only if the foundation had $5,000 or more in assets at any time during the year - see instructions.) 1 Information Regarding Foundation Managers: a List any managers of the foundation who have contributed more than 2% of the total contributions received by the foundation before the close of any tax year (but only if they have contributed more than $5,000). (See section 507(d)(2).) N/A b List any managers of the foundation who own 10% or more of the stock of a corporation (or an equally large portion of the ownership of a partnership or other entity) of which the foundation has a 10% or greater interest.

N/A 2 Information Regarding Contribution, Grant, Gift, Loan, Scholarship, etc., Programs: q organizations and not accept Check here ► if the foundation only makes contributions to preselected charitable does unsolicited requests for funds. If the foundation makes gifts, grants, etc. (see instructions) to individuals or organizations under other conditi o ns, co mpl ete items 2a, b, c, a nd d. a The name, address, and telephone number or e-mail of the person to whom applications should be addressed: SEE STATEMENT 10 b The form in which applications should be submitted and information and materials they should include: SEE ATTACHED STATEMENT FOR LINE 2

c Any submission deadlines: SEE ATTACHED STATEMENT FOR LINE 2

d Any restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other factors: SEE ATTACHED STATEMENT FOR LINE 2 iSA Form 990-PF (2012) 2E 1490 1 000 BLD551 501G 04/14/2014 15:53:21 P11340000 23 - 13-6038151 Form 990-PF (2012) Page 1 1 EWITIV-Supplementary Information (continued) 3 Grants and Contributions Paid Durina the Year or Aooroved for Future Payment If recipient is an individual, Foundationo Recipient show any relationship to of Purpose of grantor f Amount any foundation manager status contribution Name and address (home or business) or substant i al contributor recipient a Paid during the year

SEE ATTACHED NONE PUBLIC SCHOLARSHIPS 1,259,661.

Total ...... ► 3a 1 , 259 , 661. b Approved for future payment

Total t 3b Form 990-PF (2012)

JSA 2E1491 1 000 BLD551 501G 04/14/2014 15:53:21 P11340000 24 13-6038151 Form 990-PF (2012) Page 12 Analysis of Income-Producing Activities Enter g ross amounts unless otherwise indicated Unrela ted business income Excluded by section 512, 513 , or 514 (e) Related or exempt (a) (b) (c) (d ) function income 1 Pro 9 ram service revenue Business code Amount Exclusion code Amount ( See instructions a b c d e f 9 Fees and contracts from government agencies 2 Me mbership dues and assessments . . . . 3 Inte rest on savingsand temporarycash investments 4 Div idends and interest from securities , , , 14 1 049 232 . 5 Nett rental income or (loss ) from real estate: a Debt-financed property _ ...... , b Not debt-financed property ...... , 6 Net rental income or (loss ) from personal property 7 Ot h er investment income ...... 14 624 . 8 Gai nor (loss) from sales of assets other than invento ry 18 1 124 10 0 . 9 Net income or ( loss) from special events . , 10 Gro ss profit or (loss ) from sales of inventory . 11 0th er revenue. a b DEFERRED REVENUE 14 5. c d e 12 Su btotal Add columns ( b), (d), and (e) . . 2 173 961. 13 Total. Add line 12, columns (b), (d), and (e) ...... 13 2,173,961. (See worksheet in line 13 instructions to verify calculations ) Relationship of Activities to the Accomplishment of Exempt Purposes

Line No. Explain below how each activity for which income is reported in column (e) of Part XVI-A contributed importantly to the y accomplishment of the foundation's exempt purposes (other than by providing funds for such purposes). (See instructions.)

NOT APPLICABLE

JsA Form 990-PF (2012)

2E 1492 1 000 BLD551 501G 04/14/2014 15:53:21 P11340000 25 - Form 990-PF (2012) 13-6038151 Page 13 Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations 1 Did the organization directly or indirectly engage in any of the following with any other organization described in section 501(c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations? a Transfers from the reporting foundation to a noncharitable exempt organization of: (1) Cash ...... 1a(1) X (2) Other assets ...... la(2) X b Other transactions: (1) Sales of assets to a noncharitable exempt organization ...... tb(1) X (2) Purchases of assets from a noncharitable exempt organization ...... 1b(2) X (3) Rental of facilities, equipment, or other assets ...... 1b 3 X (4) Reimbursement arrangements ...... 1b 4 X (5) Loans or loan guarantees ...... 1b 5 X (6) Performance of services or membership or fundraising solicitations ...... I b( 6 ) X c Sharing of facilities, equipment, mailing lists, other assets, or paid employees ...... Iii, X d If the answer to any of the above is "Yes," complete the following schedule Column (b) should always show the fair market value of the goods, other assets, or services given by the reporting foundation. If the foundation received less than fair market value in any transaction or sharing arrangement, show in column (d) the value of the goods, other assets, or services received. (a) Line no (b) Amount involved (c) Name of noncharitable exempt organization (d) Description of transfers, transactions, and sharing arrangements

2a Is the foundation directly or indirectly affiliated with, or related to, one or more tax-exempt organizations described in section 501(c) of the Code (other than section 501(c)(3)) or in section 527? ...... q Yes © No b If "Yes," comDlete the following schedule. (a) Name of organization (b) Type of organization (c) Description of relationship

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 taxpayer ) is based on all information of wh ich preparer has any knowledge Sign May the IRS discuss this return Here IA-4 04 / 14 / 2 Signature of offer or trustee Date

Print/Type preparer's name Preparer s signatu Paid

2E 1493 1 000 BLD551 THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151

FORM 990PF, PART I - OTHER INCOME ------

REVENUE AND NET EXPENSES INVESTMENT DESCRIPTION PER BOOKS INCOME

FEDERAL TAX REFUND 624. DEFERRED REVENUE 5. GRE II PRIVATE INVESTORS K-1 823. ------TOTALS 629. 823. ------

BLD551 501G 04/14/2014 15:53:21 P11340000 STATEMENT 1 29 THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151

FORM 990PF, PART I - LEGAL FEES ------

REVENUE AND NET ADJUSTED EXPENSES INVESTMENT NET CHARITABLE DESCRIPTION PER BOOKS INCOME INCOME PURPOSES ------

LEGAL FEES - PRINCIPAL (ALLOCA 26,981. 26,981. LEGAL FEES - INCOME (ALLOCABLE 4,715. 4,715. ------TOTALS 31,696. NONE NONE 31,696. ------

BLD551 501G 04/14/2014 15:53:21 P11340000 STATEMENT 2 - 30 THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151

FORM 990PF, PART I - OTHER PROFESSIONAL FEES ------

REVENUE AND NET EXPENSES INVESTMENT DESCRIPTION PER BOOKS INCOME

INVESTMENT MGMT FEES-SUBJECT T 601,489. 601,489. ------TOTALS 601,489. 601,489. ------

BLD551 501G 04 / 14/2014 15:53:21 P11340000 STATEMENT 3 - 31 THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151

FORM 990PF, PART I - TAXES ------

REVENUE AND NET EXPENSES INVESTMENT DESCRIPTION PER BOOKS INCOME

FOREIGN TAXES 21,770. 21,770. FOREIGN TAXES ON QUALIFIED FOR 3,649. 3,649. FOREIGN TAXES ON NONQUALIFIED 609. 609. ------TOTALS 26,028. 26,028. ------

BLD551 501G 04/14/2014 15:53:21 P11340000 STATEMENT 4 32 THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151

FORM 990PF, PART I - OTHER EXPENSES ------

REVENUE AND EXPENSES CHARITABLE DESCRIPTION PER BOOKS PURPOSES

NY AG FILINGS 4,500. 4,500. OFFICE EXPENSES 103,362. 103,362. STUDENT INSURANCE 18,814. 18,814. SELECTION COMMITTEE 35,804. 35,804.

------TOTALS 162,480. 162,480. ------

BLD551 501G 04/14/2014 15:53:21 P11340000 STATEMENT 5 33 THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151

FORM 990PF, PART II - U.S. AND STATE OBLIGATIONS ------

ENDING ENDING DESCRIPTION BOOK VALUE FMV

SEE ATTACHED 2,999,406. 3,000,000. ------TOTALS 2,999,406. 3,000,000. ------

BLD551 501G 04/14/2014 15:53:21 P11340000 STATEMENT 6 34 THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151

FORM 990PF, PART II - CORPORATE STOCK ------

ENDING ENDING DESCRIPTION BOOK VALUE FMV

SEE ATTACHED 29,396,685. 68,282,372. ------TOTALS 29,396,685. 68,282,372. ------

BLD551 501G 04/14/2014 15:53:21 P11340000 STATEMENT 7 35 THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151

FORM 990PF, PART II - CORPORATE BONDS ------

ENDING ENDING DESCRIPTION BOOK VALUE FMV

SEE ATTACHED 8,609,964. 8,823,127. ------TOTALS 8,609,964. 8,823,127. ------

BLD551 501G 04/14/2014 15:53:21 P11340000 STATEMENT 8 - 36 THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151

FORM 990PF, PART II - OTHER INVESTMENTS ------COST/ FMV ENDING ENDING DESCRIPTION C OR F BOOK VALUE FMV ------

SEE ATTACHED C 4,098,460. 5,054,592. ------TOTALS 4,098,460. 5,054,592. ------

BLD551 501G 04/14 / 2014 15:53 : 21 P11340000 STATEMENT 9 37 THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151 FORM 990PF, PART XV - LINES 2a - 2d ------

RECIPIENT NAME: JENNIFER LUDOVICI ADDRESS: 11 PARK PLACE, SUITE 1503 NEW YORK, NY 10007 RECIPIENT'S PHONE NUMBER: 215-245-8859 FORM, INFORMATION AND MATERIALS: SEE STATEMENT ATTACHED SUBMISSION DEADLINES: FIRST TUESDAY IN NOVEMBER THE SELECTION COMMITTEE'S NOMINEE INFORMATION SHOULD BE SUBMITTED TO RESTRICTIONS OR LIMITATIONS ON AWARDS: THE FOUNDATION BY THE FIRST TUESDAY OF NOVEMBER.

STATEMENT 10

XD576 2000 BLD551 501G 04/14/2014 15:53:21 P11340000 38 - SCHEDULE D Capital Gains and Losses 0MB No 1545-0 0 9 2 (Form 1041) ► Attach to Form 1041, Form 5227, or Form 990-T. separate Department of the Treasury ► Information about Schedule D (Form 1041 ) and its instructions is at 20012 Interna l Revenue Service www.irs.gov/form 1041. Name of estate or trust Employer identification number THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151 Note : Form 5227 filers need to complete only Parts I and 11. ' . a Short-Term Capital Gains and Losses - Assets Held One Year or Less f) Gain or (loss) for (a) Description of property (b) Date acquired (c) Date sold (e) Cost or other basis ( (d) Sales price the entire year (Example 100 shares 7% preferred of "Z" Co ) (mo , day, yr) (mo day, yr) (see instructions) Subtract (e) from (d) 1a

b Enter the short-term gain or (loss), if any, from Schedule D-1, line 1b , , , , , , , , , , , , , , , , , , , , . lb 28 , 350

2 Short-term capital gain or (loss) from Forms 4684, 6252, 6781, and 8824 , , , , , , , , , , , , , , , , 2

3 Net short-term gain or (loss) from partnerships, S corporations, and other estates or trusts 3 4 Short-term capital loss carryover. Enter the amount, if any, from line 9 of the 2011 Capital Loss Carryover Worksheet ...... ______5 Net short-term gain or (loss). Combine Iines la through 4' in column (f). Enter here and on Iine, 13, column (3) on the back 28 , 350 1 fl Lona-Term Capital Gains and Losses - Assets Held More Than One Year (f) Gain or ( loss) for (a) Description of property (b) Date acquired (c) Date sold (e) Cost or other basis (d) Sales price the entire year (Example 100 shares 7% preferred ofZ" Co (mo, day, yr) (mo , day, yr (see instructions) ► ► Subtract (e) from (d) 6a LONG-TERM CAPITAL GAIN DIVIDEND S 42 , 960

b Enter the long-term gain or (loss), if any, from Schedule D-1, line 6b , , , , , , , , , , , , , , , , , , , , , , 6b 1 , 052 797

7 Long-term capital gain or (loss) from Forms 2439, 4684, 6252, 6781, and 8824 , , , , , , , , , , , , 7

8 Net long-term gain or (loss) from partnerships, S corporations, and other estates or trusts , , , , , , , , , 8

9 Capital gain distributions,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,, 9

10 Gain from Form 4797, Part I , , , , , , , , , , , , , ,, , , , 10 11 Long-term capital loss carryover. Enter the amount, if any, from line 14 of the 2011 Capital Loss

Carryover Worksheet ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,, . jj... ( 12 Net long-term gain or (loss). Combine lines 6a through 11 in column (f). Enter here and on line 14a, column (3) on the back ...... ► 12 1 , 095 , 757 For Paperwork Reduction Act Notice, see the Instructions for Form 1041. Schedule D (Form 1041) 2012

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2F1210 2 000 BLD551 501G 04/14/2014 15:53:21 P11340000 39 - Schedule D (Form 1041) 2012 Page 2 11110ra"a 11 Summary of Parts I and II (1 ) Beneficiaries' (2) Estate's (3) Total Caution : Read the instructions before completing this part. (see instr.) or trust's 13 Net short-term gain or (loss) ...... 13 28 , 350. 14 Net long-term gain or ( loss): a Total for year ...... 14a 1 1 095 1 757. b Unrecaptured section 1250 gain (see line 18 of the wrksht.) ... 146 c 28% rate gain ...... 14c 15 15 Total net gain or ( loss). Combine lines 13 and 14a ...... ► 1 , 124 , 107. Note : If line 15, column (3), is a net gain, enter the gain on Form 1041, line 4 (or Form 990-T, Part 1, line 4a) If lines 14a and 15, column (2), are net gains, go to Part V, and do not complete Part IV. If line 15, column (3), is a net loss, complete Part IV and the Capital Loss Carryover Worksheet, as

Loss Limitation 16 Enter here and enter as a (loss) on Form 1041, line 4 (or Form 990-T, Part I, line 4c, if a trust), the smaller of: a The loss on line 15, column (3) or b $3,000 16 Note: If the loss on line 15, column (3), is more than $3,000, or if Form 1041, page 1, line 22 (or Form 990-T, line 34), is a loss, complete the Capital Loss Carryover Worksheet in the instructions to figure your capital loss carryover CMSW Tax Computation Using Maximum Capital Gains Rates Form 1041 filers. Complete this part only if both lines 14a and 15 in column (2) are gains, or an amount is entered in Part I or Part II and there is an entry on Form 1041, line 2b(2), and Form 1041, line 22, is more than zero. Caution: Skip this part and complete the Schedule D Tax Worksheet in the instructions if. • Either line 14b, col. (2) or line 14c, col. (2) is more than zero, or • Both Form 1041, line 2b(1), and Form 4952, line 4g are more than zero. Form 990-T trusts. Complete this part only if both lines 14a and 15 are gains, or qualified dividends are included in income in Part I of Form 990-T, and Form 990-T, line 34, is more than zero Skip this part and complete the Schedule D Tax Worksheet in the instructions if either line 14b, col. (2) or line 14c, col. (2) is more than zero. 17 Enter taxable income from Form 1041, line 22 (or Form 990-T, line 34) 18 Enter the smaller of line 14a or 15 in column (2) but not less than zero , , , , , , , , , , , , , , 18 19 Enter the estate's or trust's qualified dividends from Form 1041, line 2b(2) (or enter the qualified dividends included in income in Part I of Form 990-T) , , 19 20 Add lines 18 and 19 ,,,,,,,,,,,,,,,, 20 21 If the estate or trust is filing Form 4952, enter the amount from line 4g; otherwise enter -0- ► 21 22 Subtract line 21 from line 20. If zero or less, enter -0...... 22 23 Subtract line 22 from line 17. If zero or less, enter -0- , , , , , , , , , , , 23

24 Enter the smaller of the amount on line 17 or $2,400 ...... , , , , , , 24 25 Is the amount on line 23 equal to or more than the amount on line 24? B Yes. Skip lines 25 and 26; go to line 27 and check the "No" box. No. Enter the amount from line 23 , 25 26 Subtract line 25 from line 24 ...... 26 27 Are the amounts on lines 22 and 26 the same?

D Yes. Skip lines 27 thru 30, go to line 31 [ -] NO. Enter the smaller of line 17 or line 22 27

28 Enter the amount from line 26 (If line 26 is blank, enter -0-) . , , , , .. , 28

29 Subtract line 28 from line 27 , , , , , , , , , , , , , , „ - , X 29 1 30 Multiply line 29 by 15% (.15) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 30 31 Figure the tax on the amount on line 23. Use the 2012 Tax Rate Schedule for Estates and Trusts (see the Schedule G instructions in the instructions for Form 1041) ______1

32 Add lines 30 and 31 ...... 33 Figure the tax on the amount on line 17. Use the 2012 Tax Rate Schedule for Estates and Trusts (see the Schedule G instructions in the instructions for Form 1041) , , , , , 33 34 Tax on all taxable income . Enter the smaller of line 32 or line 33 here and on Form 1041, Schedule G, line 1a (or Form 990-T, line 36) ...... 34 1 Schedule D (Form 1041) 2012

JSA 2F1220 2000

BLD551 501G 04/14/2014 15:53:21 P11340000 40 - SCHEDULE D-1 Continuation Sheet for Schedule D OMB No 1545-0092 (Form 1041) (Form 1041) 101 Attach to Schedule D to list additional transactions for lines 1a and 6a. Department of the Treasury 2012 Internal Revenue Service Information about Schedule D (Form 1041 ) and its separate instructions is at www.irs.gov/form1041 Name of estate or trust Employer identification number

Short-Term Ca p ital Gains and Losses - Assets Held One Year or Less ( b) Date (a) Description of property ( Example ( c) Date sold (e) Cost or other basis (f) Gain or (loss) acquired (d) Sales pace 100 sh 7 % preferred of "Z" Co ) (mo , day, yr ( see instructions ) Subtract ( e) from (d) mo,day, r) ► la 270. COMPANHIA DE BEBIDAS ADR PFD 06 / 21 / 2012 5.00 5.00 300000. U S A TREAS BILLS 06 / 07 / 2012 06 / 28 / 2012 299 , 945-00 299 952.00 -7.00 300000. U S A TREAS BILLS 06 / 07 / 2012 07 / 30 / 2012 299 , 95 .00 299 952.00 942. AMPHENOL CORP NEW CL VAR 07 / 31 / 2012 55 590.00 37 549.00 18 041.00 531. AMPHENOL CORP NEW CL 10 / 04 / 2011 08 / 01 / 2012 31 333.00 21 047.00 10 286.00 775. AMPHENOL CORP NEW CL 10 / 04 / 2011 08 / 03 / 2012 45 790.00 30 719.00 1-5 , 071.00 434. C.H ROBINSON WORLDWID 04 / 25 / 201 2 08 / 20 / 2012 24 938.00 26 558.00 -1 1620 00 1518. C.H ROBINSON WORLDWI 04 / 25 / 2012 08 / 21 / 2012 87 , 39 .00 92 892.00 -5 501.00 10. CNOOC LTD SPONSORED AD 12 / 07 / 2011 08 / 28 / 2012 1 1898.00 1 , 951.00 -53.00 475. CISCO SYS INC 03 / 27 / 2012 08 / 31 / 2012 9 , 075.00 9 1970.00 -895.00 150. C.H ROBINSON WORLDWID 04 / 25 / 2012 09 / 06 / 2012 8 , 617.00 9 , 179.00 -562.00 521. C.H ROBINSON WORLDWID 04 / 25 / 2012 09 / 07 / 2012 29 , 91 .00 31 882.00 -1 969.00 147. C.H ROBINSON WORLDWID 04 / 25 / 2012 09 / 10 / 2012 8 , 441.00 8 , 996.00 -555.00 1134. C.H ROBINSON WORLDWI 04 / 25 / 201 2 09 11 2012 65 149.00 69 394.00 -4 1 245.00 679. C.H ROBINSON WORLDWID 04 / 25 / 2012 09 / 12 / 2012 39 018.00 41 551.00 :-2 , 533.00 275. C.H ROBINSON WORLDWID 04 / 25 / 201 2 09 / 13 / 2012 15 797.00 16 828.00 -1 1031 00 340. C.H ROBINSON WORLDWID 04 / 25 / 2012 09 / 14 / 2012 19 , 52 .00 20 806.00 -1 284.00 131. C.H ROBINSON WORLDWID 04 / 25 / 2012 09 / 19 / 2012 7 , 521.00 8 , 016.00 -495.00 2065. C.H ROBINSON WORLDWI 04 / 25 / 2012 09 / 20 / 2012 118 884.00 126 365.00 -7 , 481.00 1006. C.H ROBINSON WORLDWI 04 / 25 / 2012 09 / 21 / 2012 57 853.00 61 561.00 -3 , 708.00 115. BAIDU.COM-ADR VAR 11 / 05 / 2012 11 872.00 15 , 321. 00 -3 , 449.00 120. YUM BRANDS INC 07 / 27 / 201 2 01 / 14 / 2013 7 , 956.00 7 , 981.00 -25.00 50. GAP INC 03 27 2012 01/ 25 /20131 1 , 662.00 11 337.00 325.00 325. GAP INC 03 27 2012 02 / 12 / 2013 1 10 471.00 8 , 693.00 1 , 778.00

1b Total. Combine the amounts in column M. Enter here and on Schedule D, line 1b . For Paperwork Reduction Act Notice, see the Instructions for Form 1041 . Schedule D- 1 (Form 1041) 2012 JSA 2F 1221 2 000 BLD551 501G 04/14/2014 15:53:21 P11340000 41 SCHEDULE D-1 Continuation Sheet for Schedule D OMB No 1545-0092 (Form 1041) (Form 1041) Attach to Schedule D to list additional transactions for lines 1a Department of the Treasury 1 101 and 6a. 2012 Internal Revenue service Information about Schedule D (Form 1041) and its separate instructions is at www.irs.gov/form 1041 Name of estate or trust Employer identification number

lb Total . Combine the amounts in column (f). Enter here and on Schedule D, line 1b 28 350.00 For Paperwork Reduction Act Notice, see the Instructions for Form 1041 . Schedule D-1 (Form 1041) 2012 JSA 2F1221 2000 BLD551 501G 04/14/2014 15:53:21 P11340000 42 - ScheduleD-1 (Form 1041) 2012 2 Name of estate or trust as shown on Form 1041 Do not enter name and employer identification number if shown on the other side Employer identification number THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151 F01T1 Lana-Term Canital Gains and Lasses - Assets Held More Than One Year

( a) Description ( b) Date ( c) Date sold (e) Cost or other basis (f) Gain or (loss) of property ( Example (d) Sales price 100 sh 7% preferred of "Z" Co ) acquired (mo , day, yr ( see instructions ) Subtract (e) from (d) (mo , da y, r ) ► 6a . GLOBAL CROSSING LTD 06 / 13 / 2012 23.00 23.00 270. COMPANHIA DE BEBIDAS ADR PFD 06 / 05 / 2008 07 / 16 / 2012 9 , 89 .00 3 1 643.00 6 , 249.00 75. CERNER CORP 06 / 12 / 200 9 07 / 17 / 2012 5 , 840.00 2 , 212.00 3 1 628.00 215. HALLIBURTON CO 12 / 20 / 2005 07 / 17 / 2012 6 , 27 .00 61 923.00 -647.00 105. MCDONALDS CORP 12 / 20 / 2005 07 / 27 / 2012 9 , 34 .00 31 607.00 5 738.00 260000. BARC BREN EAFE 08 07 / 15 / 2011 08 / 01 / 2012 227 325.00 257 400.00 -30 075.00 325. MICROSOFT CORP VAR 08 / 03 / 2012 9 , 702.00 81 733.00 969.00 55. VARIAN MED SYS INC 07 / 31 / 2008 08 / 03 / 2012 3 1 049.00 3 1 317.00 -268.00 JPMCB SPECIAL EQUITIES F 08 / 10 / 2012 3 , 71 .00 3 , 717.00 55. PIONEER NAT RES CO VAR 08 / 10 / 2012 5 , 374.00 4 , 331.00 1 , 043.00 170. DU PONT E I DE NEMO 08 / 12 / 2011 08 / 17 / 2012 8 , 588.00 8 1109.00 479.00 681. BECTON DICKINSON & CO VAR 08 / 21 / 2012 51 858.00 45 992.00 5 866.00 464. BECTON DICKINSON & CO VAR 08 / 22 / 2012 35 255.00 31 334.00 3 921.00 94. BECTON DICKINSON & CO 10 / 21 / 2009 08 / 24 / 2012 7 , 141.00 6 , 347.00 794.00 800. BECTON DICKINSON & CO VAR 08 / 27 / 2012 60 822.00 54 016.00 6 806.00 213. BECTON DICKINSON & CO 10 / 07 / 2009 08 / 28 / 2012 16 , 18 .00 14 379.00 1 807.00 15. CNOOC LTD SPONSORED AD 06 / 21 / 2010 08 / 28 / 2012 2 , 846.00 2 , 682.00 164.00 115. BECTON DICKINSON & CO 10 / 07 / 2009 08 / 29 / 2012 8 , 737.00 7 , 763.00 974.00 15. CNOOC LTD SPONSORED AD 06 / 21 / 2010 08 / 29 / 2012 2 , 84 .00 2 1682 00 162.00 225. BECTON DICKINSON & CO 10 / 07 / 200 9 08 / 30 / 2012 17 091.00 15 189.00 1 1 902.00 144. AFLAC INC 12 / 17 / 2010 08 / 31 / 2012 6 , 653.00 8 , 061.00 -1 , 408.00 1065. BECTON DICKINSON & C VAR 08 / 31 / 2012 80 997.00 71 884.00 9 , 113.00 10. PRICELINE.COM INC 01 / 15 / 200 9 08 / 31 / 2012 6 041.00 687.00 5 , 354.00 81. AFLAC INC VAR 09 / 04 / 2012 3, 741.00 4 , 181.00 -440.00 1364. BECTON DICKINSON & C VAR 09 / 04 / 2012 103 769.00 92 057.00 11 712.00

6b Total . Combine the amounts in column (f). Enter here and on Schedule D, line 6b . Schedule D-1 (Form 1041) 2012

JSA

2F1222 2 000 BLD551 501G 04/14/2014 15:53:21 P11340000 43 - Schedule D-1 (Form 1041 ) 2012 Page Z Name of estate or trust as shown on Form 1041. Do not enter name and employer identification number if shown on the other side Employer identification number THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151 Long-Term Capital Gains and Losses - Assets Held More Than One Year

(a) Description of property (Example ( b) Date (c) Date sold (e) Cost or other basis (f) Gain or (loss) cquired (d) Sales price 100 sh 7% preferred of "Z" Co ) a ( mo, day, yr) (see instructions) Subtract ( e) from (d) ( mo, day, y r ) 6a 60 . NIKE INC VAR 09 / 14 / 2012 5 , 835.00 3 552.00 2 , 283.00 146. METTLER TOLEDO INTERN 03 / 30 / 2009 09 / 18 / 2012 25 413.00 7 , 295.00 18 118.00 61974.309 JPMORGAN SHORT D FUND 02 / 17 / 2010 09 / 19 / 2012 682 , 95 .00 676 759.00 6 198.00 254. METTLER TOLEDO INTERN 03 / 30 / 200 9 09 / 19 / 2012 44 231.00 12 692.00 31 539.00 265. TEXAS INSTRS INC 12 / 20 / 2005 09 / 28 / 2012 7 , 29 .00 8 1610.00 -1 317.00 105. DOVER CORP 11 / 05 / 2009 10 / 09 / 2012 6 , 07 .00 4 1186.00 1 885.00 VERITAS SOFTWARE CO 10 / 10 / 2012 11.00 11.00 TIME WARNER INC 10 / 17 / 2012 19.00 19.00 12498. CORNING INC 06 / 01 / 201 1 10 / 18 / 2012 171 476.00 248 437.00 -76 ,961:00 290000. GS MARKET PLUS GOL 10 / 22 / 12 10 / 10 / 201 1 10 / 22 / 2012 303 095.00 287 100.00 15 995.00 APPLE COMPUTER INC 10 / 23 / 2012 36.00 36.00 70. NIKE INC 03 / 07 / 2007 10 / 24 / 2012 6 , 49 .00 3 1652.00 2 838.00 370. MICROSOFT CORP VAR 10 / 26 / 2012 10 346.00 9 792.00 554.00 9082.652 JPMORGAN SHORT D FUND 02 / 17 / 201 0 11 / 06 / 2012 100 000.00 99 183.00 817.00 3053. TARGET CORP 06 / 06 / 2006 11 /07 /2012 192 335.00 144 989.00 47 346.00 396. TARGET CORP 06 / 06 / 2006 11 / 08 / 2012 24 940.00 18 806.00 6 , 134.00 110. NETEASE.COM INC VAR 11 / 16 / 2012 4 , 846.00 5 1276.00 -430.00 6215. TARGET CORP VAR 11 / 19 / 2012 391 720.00 293 096.00 98 624.00 6291. TARGET CORP 07 / 1 8 2006 11 / 20 / 2012 396 100.00 284 336.00 111 764.00 3316. TARGET CORP 07 / 18 / 2006 11 / 21 / 2012 209 , 08 .00 149 874.00 59 206.00 65. CATERPILLAR INC 11 / 29 / 201 0 11 / 26 / 2012 5 , 473.00 5 , 392.00 81.00 BANK OF AMERICA CORPORA 12 / 05 / 2012 10.00 10.00 60907.116 JPMORGAN SHORT D FUND 02 / 17 / 2010 12 / 21 / 2012 669 978.00 665 106.00 4 , 872.00 1286. MOHAWK INDS INC VAR 12 / 24 / 2012 116 043.00 100 288.00 15 755.00 1825. MOHAWK INDS INC VAR 12 / 26 / 2012 164 476.00 136 336.00 28 140.00

6b Total . Combine the amounts in column (f). Enter here and on Schedule D, line 6b .. . Schedule D-1 (Form 1041) 2012

JSA

2F1222 2000 BLD551 501G 04/14/2014 15:53:21 P11340000 44 Schedule D-1 (Form 1041 ) 2012 Page 1 Name of estate or trust as shown on Form 1041 Do not enter name and employer identification number if shown on the other side Employer identification number THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151 Long-Term Capital Gains and Losses - Assets Held More Than One Year (a) Description of property (Example (b) Date (c) Date sold ( e) Cost or other basis (f) Gain or (loss) (d) Sales price 100 sh 7% preferred of Z Co ) acquired ( m o, da y, yr) ( see instructions ) Subtract ( e) from (d) (mo , da y, r 6a 1238. MOHAWK INDS INC VAR 12 / 27 / 2012 111 384.00 76 , 666. 00 34 718.00 438. MOHAWK INDS INC 07 / 17 / 2002 12 / 28 / 2012 39 , 40 .00 21 167.00 18 238.00 2824. MOHAWK INDS INC 07 / 17 / 2002 12 / 31 / 2012 254 , 36 .00 136 472.00 117 891.00 DELL INC 01 / 16 / 2013 11.00 11.00 DELL INC 01 / 16 / 2013 9.00 9.00 60. ALLERGAN INC 04 / 12 / 2010 01 / 25 / 2013 6 , 390.00 3 , 799.00 2 , 591.00 5. INTERNATIONAL BUSINESS 01 / 11 / 200 7 01 / 25 / 2013 1 024.00 497.00 527.00 35. LAUDER ESTEE COS INC C 05 / 10 / 201 1 01 / 25 / 2013 2 200.00 1 , 793.00 407.00 10. SCHEIN HENRY INC 12 / 20 / 2005 01 / 25 / 2013 877.00 435.00 442.00 CENDANT CORP 01 / 29 / 2013 17.00 17.00 621. JPMCB SPECIAL EQUITIE 10 / 11 / 201 1 03 08 2013 14.00 14.00 17647. UNITS-JPMCB INTER F FD VAR 03 / 08 / 2013 10 476.00 10 476.00 30. DIAGEO PLC SPONSORED 02 / 24 / 2012 03 / 15 / 2013 3 , 640.00 2 , 841.00 799.00 375000. HSBC MARKET PLUS S 09 / 09 / 201 1 03 / 18 / 201 3 505 051.00 370 313.00 134, 738 00 9046.129 ABERDEEN ASIA PAC JAPAN 02 / 03 / 2010 03 / 27 / 2013 109 096.00 86 752.00 22 344.00 12155.513 DODGE & INTERNA FUND 09 / 07 / 200 7 03 / 27 / 2013 435 532.00 570 580.00 -135 , 048.00 5975.785 HIGHBRIDGE DYNAMI COMMODITIES 05 / 02 / 201 1 03 27 2013 83 123.00 133 081.00 -49 , 958.00 15859.714 JPMORGAN TR I M SEL 07 / 01 / 2010 03 / 27 / 2013 237 420.00 244 081.00 -6 1 661.00 137404.703 JPMORGAN SHORT BOND FUND VAR 03 / 27 / 2013 1 , 510 , 078.00 1 , 500 , 459.00 9 , 619.00 4924.901 MATTHEWS PACIFIC FUND 07 / 01 / 2010 03 / 27 / 2013 123 270.00 94 291.00 28 , 979:00 654. VANGUARD EMERGING MAR 09 / 28 / 2010 03 / 27 / 2013 27 715.00 29 , 395. 00 -1 , 680.00 156. DIRECTV 07 / 24 / 200 8 04 / 04 / 201 3 8 , 674.00 4 , 168.00 4 1 506.00 19063.881 ABERDEEN ASIA P JAPAN 02 / 03 / 2010 04 / 09 / 2013 227 432.00 182 823.00 44 609.00 6338.659 DODGE & INTERNATI FUND 09 / 07 / 2007 04 / 09 / 2013 227 051.00 297 537.00 -70 , 486.00 18922. CORNING INC VAR 04 / 24 / 2013 260 507.00 333 638.00 -73 , 131.00

6b Total. Combine the amounts in column (f). Enter here and on Schedule D, line 6b ...... Schedule D- 1 (Form 1041) 2012

JSA

2F1222 2000 BLD551 501G 04/14/2014 15:53:21 P11340000 45 Schedule D-1 (Form 1041) 2012 2 Name of estate or trust as shown on Form 1041 Do not enter name and employer identification number if shown on the other side Employer identification number THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151 fl Long-Term Capital Gains and Losses - Assets Held More Than One Year (a) Description ( b) Date (c) Date sold (e) Cost or other basis (f) Gain or (loss) of property ( Example (d) Sales price 100 sh 7 % preferred of "Z" Co ) acquired ( mo , day, yr (see instructions) Subtract ( e) from (d) (mo, da y, r ► 6a 956 . ADVANCED AUTO PARTS I 02 / 10 / 2011 04 / 25 / 2013 79 , 40 .00 62 104.00 17 304.00 587. ADVANCED AUTO PARTS I VAR 04 / 26 / 2013 48 724.00 38 106.00 10 618.00 1149. ADVANCED AUTO PARTS VAR 04 / 29 / 2013 95 516.00 73 587.00 21 929.00 537. ADVANCED AUTO PARTS I VAR 04 / 30 / 2013 44 646.00 33 770.00 10 876.00 71. SMA SOLAR TECHNOLOGY 02 / 04 / 2011 05 / 02 / 2013 1 , 760.00 . 6 1 997.00 -5 237.00 1108. FIRST SOLAR INC VAR 05 / 03 / 2013 52 072.00 137 523.00 -85 451.00 1785. MOHAWK INDS INC VAR 05 / 03 / 2013 206 , 41 .00 84 347.00 122 068.00 284. SMA SOLAR TECHNOLOGY 02 / 04 / 2011 05 / 03 / 2013 7 , 142.00 27 988.00 -20 , 846.00 2559. FIRST SOLAR INC VAR 05 / 06 / 2013 120 236.00 313 676.00 -193 , 440.00 717. MOHAWK INDS INC 07 / 16 / 2002 05 / 06 / 2013 82 , 50 .00 32 229.00 50 271.00 140. SMA SOLAR TECHNOLOGY 02 / 04 / 2011 05 / 06 / 2013 3 , 52 .00 13 797.00 -10 273.00 39. INTERNATIONAL BUSINESS VAR 05 / 07 / 2013 7 , 90 .00 31 851.00 4 058.00 1066. MOHAWK INDS INC 07 / 16 / 2002 05 / 07 / 2013 122 , 65 .00 47 916.00 74 741.00 290. SMA SOLAR TECHNOLOGY " 02 / 04 / 2011 05 / 07 / 2013 7 , 420.00 28 580.00 -21 , 160.00 1996. MOHAWK INDS INC 07 / 16 / 2002 05 / 08 / 2013 230 , 88 .00 89 719.00 141 163.00 37. SMA SOLAR TECHNOLOGY 02 / 04 / 201 1 05 / 08 / 2013 925.00 3 , 646.00 -2 1 721.00 1059. MOHAWK INDS INC 07 / 16 / 2002 05 / 09 / 2013 124 752.00 47 601.00 77 151.00 168. SMA SOLAR TECHNOLOGY 02 / 04 / 2011 05 / 09 / 2013 4 1 189.00 16 556.00 -12 , 367.00 549. MOHAWK INDS INC 07 / 16 / 2002 05 / 10 / 2013 64 , 86 .00 24 677.00 40 190.00 157. SMA SOLAR TECHNOLOGY 02 / 04 / 2011 05 / 10 / 2013 3 , 982.00 15 472.00 -11 , 490.00 1352. MOHAWK INDS INC 07 / 16 / 2002 05 / 13 / 2013 159 837.00 60 771.00 99 066.00 1441. MOHAWK INDS INC 07 / 16 / 2002 05 /14/ 2013 172 882.00 64 772.00 1-0-8 , 11-0-00 325000. GS BREN EAFE 05/15 04 / 27 / 2012 05 / 15 / 2013 388 095.00 321 750.00 66 345.00 247. MOHAWK INDS INC 07 / 16 / 2002 05 / 15 / 2013 29 501.00 11 102.00 18 399.00 10. PIONEER NAT RES CO 1 05 / 20 / 2010 1 05 / 17 / 2013 1 , 393.00 573.00 820.00

6b Total . Combine the amounts in column Enter here and on Schedule D, line 6b . Schedule D-1 (Form 1041) 2012

JSA

2F1222 2000 BLD551 501G 04/14/2014 15:53:21 P11340000 46 Schedule D-1 (Form 1041) 2012 2 Name of estate or trust as shown on Form 1041 Do not enter name and employer identification number if shown on the other side Employer identification number THOMAS J WATSON FOUNDATION - PRIN P11340000 13-6038151 Long-Term Capital Gains and Losses - Assets Held More Than One Year (a) Description Example (b) Date ( c) Date sold (e) Cost or other basis (f) Gain or (loss) of property ( (d) Sales price 100 sh 7 % preferred of 'Z' Co) acqu i red (mo, day, yr) ( see instructions) Subtract (e) from (d) (mo,da y, r) 6a 10. SCHEIN HENRY INC 12 / 20 / 2005 05 / 17 / 2013 955.00 435.00 520.00 354000. GS BREN SPX 05/30/ 05 / 11 / 2012 05 / 30 / 2013 397 , 54 .00 350 460.00 47 082.00

6b Total . Combine the amounts in column (f). Enter here and on Schedule D, line 6b .. . 11, 052 , 797 . 00 Schedule D- 1 (Form 1041) 2012

JSA

2F1222 2000 BLD551 501G 04/14/2014 15:53:21 P11340000 47 ACCT 501G P11340000 JPMORGAN CHASE BANK, NA PAGE 62 PREP IS3 ADMN SR2 INV JS8 TAX TRANSACTION DETAIL RUN 04/14/2014 03 42 40 PM

TAX EDIT CODE/DATE TRANSACTIONS TAXABLE INCOME PRINCIPAL NUMBER ------

102 CHARITABLE DEDUCTION - CURRENT INCOME (CONTINUED) THOMAS OLIVE WATSON FDN FOR FOLLETT BRADLEY SCHOLARSHIP EXPENSE TR TRAN#=13020276058750 TR CD=135 REG= PORT=PRIN I ???? ( CA0 05 / 29/13)

09/05/12 TRFD BY WIRE TO BANK OF AMERICA -21349 00 -21349 00 1209000008 N A FAO PRESIDENT & FELLOWS OF *-CHANGED** 01/25/13 CAO HARVARD COLLEGE REPRESENTS 2012-13 TUITION FOR NATHAN BETCHER PER INV # HU 14638 DTD 08/30/2012 TR TRAN#=12090176218420 TR CD=543 REG= PORT=PRIN

12/13/12 PAID WHEATON COLLEGE, NORTON, -3293 64 -3293 64 1212000019 MA REPRESENTS 2012 - 2013 STIPEND **CHANGED** 01/16/13 CAO FOR MS IRAIMI MERCADO TREASURERS CHECK NO 2606804 TR TRAN#=12120176663370 TR CD=543 REG= PORT=INC

12/13/12 PAID SWARTHMORE COLLEGE, SWARTHMORE -1617 24 -1617.24 1212000020 SWARTHMORE, PA REPRESENTS **CHANGED** 01/16/13 CAO 2012 - 2013 STIPEND FOR MS ESTELLA BAKER TREASURERS CHECK NO 2606805 TR TRAN#=12120176663380 TR CD=543 REG= PORT=INC

12/13/12 PAID AMHERST COLLEGE, AMHERST, -1498 92 -1498 92 1212000021 MA REPRESENTS 2012-2013 STIPEND **CHANGED** 01/16/13 CAO FOR MS ELLEN RICHMOND TREASURERS CHECK NO 2606806 TR TRAN#=12120176663390 TR CD=543 REG= PORT=INC

12/13/12 PAID VASSAR COLLEGE, POUGHKEEPSKIE, -600 00 -600 00 1212000022 NY REPRESENTS 2012 - 2013 STIPEND **CHANGED** 01/16/13 CAO FOR MR CHENG PENG TREASURERS CHECK NO. 2606807 TR TRAN#=12120176663400 TR CD=543 REG= PORT=INC

04/05/13 PAID WHEATON COLLEGE, NORTON, -4864.80 -4864 80 1304000013 MA REPRESENTS 2012 - 2013 STIPEND **CHANGED** 04/09/13 CAO FOR MR ADAM GOLDBERG TREASURERS CHECK NO 2732275 TR TRAN#=13040176436950 TR CD=543 REG=O PORT=INC

04/05/13 PAID HAMILTON COLLEGE, CLINTON, -3887 04 -3887.04 1304000014 NY REPRESENTS 2012 - 2013 STIPEND **CHANGED** 04/09/13 CAO FOR MS SPENCER GULBRONSON TREASURERS CHECK NO 2732276 TR TRAN#=13040176436960 TR CD=543 REG=O PORT=PAIN

04/05/13 PAID COLORADO COLLEGE, COLORADO, -2782 80 -2782 80 1304000015 SPRINGS, CO REPRESENTS 2012-2013 **CHANGED** 04/09/13 CAO STIPEND FOR MS JAMIE DRILLETTE - TREASURERS CHECK NO. 2732277 TR TRAN#=13040176436970 TR CD=543 REG=O PORT=INC

04/05/13 PAID BOWDOIN COLLEGE, BRUNSWICK, -1810.56 -1810 56 1304000016 ME REPRESENTS 2012-2013 STIPEND **CHANGED** 04/09/13 CAO FOR TEONA WILLIAMS TREASURERS CHECK NO. 2732278 TR TRAN#=13040176436980 TR CD=543 REG=O PORT=INC

04/05/13 PAID WHITMAN COLLEGE, WALLA -1680.00 -1680.00 1304000017 WALLA, WA REPRESENTS 2012 - 2013 **CHANGED** 04/09/13 CAO STIPEND FOR MR. ZACHARY DUFFY TREASURERS CHECK NO: 2732279 TR TRAN#=13040176436990 TR CD=543 REG=O PORT=INC

04/05/13 PAID AMHERST COLLEGE, AMHERST, -480.00 -480.00 1304000018 MA REPRESENTS 2012-2013 STIPEND **CHANGED** 04/09/13 CAO FOR MS ELLEN RICHMOND TREASURERS CHECK NO 2732280 TR TRAN#=13040176437000 TR CD=543 REG=O PORT=INC

05/08/13 PAID BARD COLLEGE, 3088 20 -3088.20 1305000018 ANNANDALE-ON-HUDSON, NY REPRESENTS **CHANGED** 05/29/13 CAO 2012- 2013 STIPEND FOR MS. DANIELA ANDERSON TREASURERS CHECK NO 2769445 TR TRAN#=13050176439330 TR CD=543 REG=O PORT=INC

05/08 /13 PAID CALIFORNIA INSTITUTE OF -2039 . 64 -2039.64 1305000019 TECHNOLOGY - SOUTH PASADENA CA **CHANGED** 05 /29/13 CAO REPRESENTS 2012 - 2013 STIPEND FOR MR. PETER BUHLER TREASURERS CHECK NO: 2769446 TR TRAN#=13050176439340 TR CD=543 REG=O PORT=INC

05/14/13 PAID EARLHAM COLLEGE, RICHMOND, -60000 00 -60000.00 1305000024 IN REPRESENTS 2013-2014 STIPEND *-CHANGED** 05/29/13 CAO FOR LILY CUTLER - $35K AND WILMER ACCT 501G P11340000 JPMORGAN CHASE BANK, NA PAGE 63 PREP•IS3 ADMN SR2 INV JS8 TAX TRANSACTION DETAIL RUN 04/14/2014 03 42 40 PM

TAX EDIT CODE/DATE TRANSACTIONS TAXABLE INCOME PRINCIPAL NUMBER ------

102 CHARITABLE DEDUCTION - CURRENT INCOME (CONTINUED) CHAVARRIA - $25K TREASURERS CHECK NO 2773627 TR TRAN#=13050176661650 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID WILLIAMS COLLEGE, -50000.00 -50000.00 1305000025 WILLIAMSTOWN, MA REPRESENTS **CHANGED** 05/29/13 CAO 2013 - 2014 STIPEND FOR EMMANUEL WHYTE - $25K AND ABDULLAH AWAD - $25K TREASURERS CHECK NO. 2773628 TR TRAN#=13050176661660 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID SCRIPPS COLLEGE, CLAREMONT, -50000 00 -50000 00 1305000026 CA REPRESENTS 2013 -2014 STIPEND **CHANGED** 05/29/13 CAO FOR MELISSA MARGOLIS - $25K AND PRISCILLA GUTTO BASSETT - $25K TREASURERS CHECK NO 2773629 TR TRAN#=13050176661670 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID SWARTHMORE COLLEGE, SWARTHMORE -50000 00 -50000.00 1305000027 SWARTHMORE, PA REPRESENTS **CHANGED** 05/29/13 CAO 2013 - 2014 STIPEND FOR JAVIER PEREZ - $25K AND MINH-DUYEN NGUYEN - $25K TREASURERS CHECK NO: 2773630 TR TRAN#=13050176661680 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID UNION COLLEGE, SCHNECTADY, -50000 00 -50000 00 1305000028 NY REPRESENTS 2013-2014 STIPEND **CHANGED** 05/29/13 CAO FOR JOSHUA ANDERSON - $25K AND SHILPA DARIVEMULA - $25K TREASURERS CHECK NO 2773631 TR TRAN#=13050176661690 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID AMHERST COLLEGE, AMHERST, -50000 00 -50000 00 1305000029 MA REPRESENTS 2013-2014 STIPEND **CHANGED** 05/29/13 CAO FOR KERI LAMBERT - $25K AND LINDSAY STERN - $25K TREASURERS CHECK NO 2773632 TR TRAN#=13050176661700 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID CARLETON COLLEGE, NORTHFIELD, -50000 00 -50000.00 1305000030 MN REPRESENTS 2013-2014 STIPEND **CHANGED** 05/29/13 CAO STIPEND FOR ROBIN WONSLEY - $25K AND CHARLIE BENTLEY - $25K TREASURERS CHECK NO 2773633 TR TRAN#=13050176661710 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID COLGATE UNIVERSITY, HAMILTON, -50000.00 -50000.00 1305000031 NY REPRESENTS 2013-2014 STIPEND **CHANGED** 05/29/13 CAO FOR SRIKAR GULLAPALLI - $25K AND REBEKAH WARD - $25K TREASURERS CHECK NO. 2773634 TR TRAN#=13050176661720 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID COLLEGE OF THE ATLANTIC, BAR -50000 00 -50000 00 1305000032 HARBOUR, ME REPRESENTS 2013 - *•CHANGED** 05/29/13 CAO 2014 STIPEND FOR LISA BJERKE - $25K AND GRAHAM REEDER - $25K TREASURERS CHECK NO 2773635 TR TRAN#=13050176661730 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID MIDDLEBURY COLLEGE, -25000 00 -25000.00 1305000042 MIDDLEBURY, VT REPRESENTS **CHANGED** 05/29/13 CAO 2013 - 2014 STIPEND FOR BARBARA OFOSU-SOMUAH TREASURERS CHECK NO. 2773645 TR TRAN#=13050176661830 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID OBERLIN COLLEGE, OBERLIN, OH -25000.00 -25000.00 1305000043 REPRESENTS 2013 - 2014 STIPEND **CHANGED** 05/29/13 CAO FOR GAIL SCHWIETERMAN TREASURERS CHECK NO 2773646 TR TRAN#=13050176661840 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID PITZER COLLEGE, CLAREMONT, CA -25000 00 -25000.00 1305000044 REPRESENTS 2013 - 2014 STIPEND FOR **CHANGED** 05/29/13 CAO HALEY BROWN TREASURERS CHECK NO 2773647 TR TRAN#=13050176661850 TR CD=543 REG=O PORT=PAIN

05/14/13 PAID POMONA COLLEGE, CLAREMONT, -25000.00 -25000.00 1305000045 CA REPRESENTS 2013 - 2014 STIPEND "CHANGED** 05/29/13 CAO FOR EFE KABBA TREASURERS CHECK NO. 2773648 TR TRAN#=13050176661860 TR CD=543 REG=O PORT=PAIN ACCT 501G P11340000 JPMORGAN CHASE BANK, NA PAGE 64 PREP IS3 AOMN SR2 INV JS8 TAX TRANS ACTION DETAIL RUN 04/14/2014 03 42 40 PM

TAX EDIT CODE/DATE TRANSACTIONS TAXABLE INCOME PRINCIPAL NUMBER ------

102 CHARITABLE DEDUCTION - CURRENT INCOME ( CONTINUED) 05/14/13 PAID REED COLLEGE, PORTLAND, OR -25000 00 -25000 00 1305000046 REPRESENTS 2013 - 2014 STIPEND FOR **CHANGED** 05/29/13 CAO COLLIN PERKINSON TREASURERS CHECK NO 2773649 TR TRAN#=13050176661870 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID RHODES COLLEGE, MEMPHIS, TN -25000 00 -25000 00 1305000047 REPRESENTS 2013 - 2014 STIPEND FOR **CHANGED** 05/29/13 CAO SARAH BACOT TREASURERS CHECK NO 2773650 TR TRAN#=13050176661880 TR CD=543 REG=O PORT=PAIN

05/14/13 PAID RICE UNIVERSITY, HOUSTON, -25000 00 -25000 00 1305000048 TX REPRESENTS 2013 - 2014 STIPEND **CHANGED** 05/29/13 CAO JENNY WEN TREASURERS CHECK NO 2773651 TR TRAN#=13050176661890 TR CD=543 REG=O PORT=PAIN

05/14/13 PAID COLORADO COLLEGE, COLORADO, -25000 00 -25000 00 1305000049 SPRINGS, CO REPRESENTS 2013 - 2014 **CHANGED** 05/29/13 CAO STIPEND FOR SIRI UNDLIN TREASURERS CHECK NO 2773652 TR TRAN#=13050176661900 TR CD=543 REG=O PORT=PAIN

05/14/13 PAID BARD COLLEGE, -25000 00 -25000 00 1305000050 ANNANDALE-ON-HUDSON, NY REPRESENTS **CHANGED** 05/29/13 CAO 2013-2014 STIPEND FOR JOSE AGUSTIN SANCHEZ TREASURERS CHECK NO 2773653 TR TRAN#=13050176661910 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID BATES COLLEGE, LEWISTON, ME -25000 00 -25000.00 1305000051 REPRESENTS 2013-2014 STIPEND FOR **CHANGED** 05/29/13 CAO INGRID NORRMEN-SMITH TREASURERS CHECK NO 2773654 TR TRAN#=13050176661920 TR CD=543 REG=O PORT=PAIN

05/14/13 PAID BEREA COLLEGE, BEREA, KY -25000.00 -25000.00 1305000052 REPRESENTS 2013-2014 STIPEND CHANGED** 05/29/13 CAO FOR LOREAL BELL TREASURERS CHECK NO 2773655 TR TRAN#=13050176661930 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID BOWDOIN COLLEGE, BRUNSWICK, -25000 00 -25000 00 1305000053 ME REPRESENTS 2013-2014 STIPEND **CHANGED** 05/29/13 CAO FOR SAMUEL BRUCE TREASURERS CHECK NO: 2773656 TR TRAN#=13050176661940 TR CD=543 REG=O PORT=PAIN

05/14/13 PAID HARVEY MUDD COLLEGE, -50000 00 -50000 00 1305000033 CLAREMONT, CA REPRESENTS 2013 - **CHANGED** 05/29/13 CAO 2014 STIPEND FOR HANNAH GROSHONG - $25K AND DUSTIN ZUBKE - $25K TREASURERS CHECK NO 2773636 TR TRAN#=13050176661740 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID BRYN MAWR COLLEGE, BRYN -35000.00 -35000.00 1305000034 MAWR, PA REPRESENTS 2013-2014 **CHANGED** 05/29/13 CAO STIPEND FOR SARAH AUBREY TREASURERS CHECK NO 2773637 TR TRAN#=13050176661750 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID UNIVERSITY OF THE SOUTH, -25000 00 -25000 00 1305000035 SEWANEE, TN REPRESENTS 2013 - -*CHANGED** 05/29/13 CAO 2014 STIPEND FOR DEANDRE ESPREE- CONAWAY TREASURERS CHECK NO: 2773638 TR TRAN#=13050176661760 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID WELLESLEY COLLEGE, WELLESLEY, -25000.00 -25000.00 1305000036 MA REPRESENTS 2013 - 2014 STIPEND **CHANGED** 05/29/13 CAO FOR ALICE CHOE TREASURERS CHECK NO 2773639 TR TRAN#=13050176661770 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID WHITMAN COLLEGE, WALLA -25000.00 -25000 00 1305000037 WALLA, WA REPRESENTS 2013 - 2014 **CHANGED** 05/29/13 CAO STIPEND FOR LIAN CASPI TREASURERS CHECK NO. 2773640 TR TRAN#=13050176661780 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID GRINNELL COLLEGE, GRINNELL, - 25000.00 -25000.00 1305000038 IA REPRESENTS 2013-2014 STIPEND **CHANGED** 05/29/13 CAO FOR NOAH MOST TREASURERS CHECK NO. 2773641 TR TRAN#=13050176661790 TR CD=543 REG=O PORT=PAIN ACCT 501G P11340000 JPMORGAN CHASE BANK, NA PAGE 65 PREP IS3 ADMN SR2 INV JSB TAX TRANSACTION DETAIL RUN 04/14/2014 03 42 40 PM

TAX EDIT CODE/DATE TRANSACTIONS TAXABLE INCOME PRINCIPAL NUMBER ------

102 CHARITABLE DEDUCTION - CURRENT INCOME ( CONTINUED) 05/14/13 PAID HAMILTON COLLEGE, CLINTON, -25000 00 -25000 00 1305000039 NY REPRESENTS 2013 - 2014 STIPEND **CHANGED** 05/29/13 CAO FOR LAUREN HOWE TREASURERS CHECK NO 2773642 TR TRAN#=13050176661800 TR CD=543 REG=O PORT=PRIN

05/14/13 PAID HENDRIX COLLEGE, CONWAY, -25000 00 -25000 00 1305000040 AR REPRESENTS 2013-2014 STIPEND **CHANGED** 05/29/13 CAO FOR MAIA YANG TREASURERS CHECK NO 2773643 TR TRAN#=13050176661810 TR CD=543 REG=O PORT=PAIN

05/14/13 PAID LAWRENCE UNIVERSITY, APPLETON -25000 00 -25000 00 1305000041 WI, REPRESENTS 2013 - 2014 STIPEND *-CHANGED** 05/29/13 CAO FOR DANIEL MILLER TREASURERS CHECK NO 2773644 TR TRAN#=13050176661820 TR CD=543 REG=O PORT=PRIM ------TOTAL CODE 102 - CHARITABLE DEDUCTION - CURRENT INCOME -1259660 84 -23755 80 -1235905 04 ------THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13 Account Summary

PRINCIPAL

Beginning Ending Change Estimated Current Asset Allocation Asset Allocation Market Value Market Value I n Value Annual Income Allocation

Equity 7,703,540.50 7,425,033.43 (278,507.07) 81,699.53 35% ncome Alternative Assets 5,020,219.02 5,054,592.02 34,373.00 14,201.59 24% Specially - Assets Cash & Fixed Income 9,877,713.96 9,196,172.10 (681,541.86) 317,566.81 40% Specialty Assets 2.00 2.00 0 00 1% Market Value $22,601 ,475.48 $21,675,799 .55 ($925,675.93 ) $413,467 .93 100% Altemsbva Assets INCOME

Beginning Ending Change Cash Position Market Value Market Value In Value

Cash Balance 11,174 99 9,260.31 ( 1,914.68) Accruals 5,84791 5,692.10 (155.81) Market Value $17,022 .90 $14,952.41 ($2,070.49)

J.P. Morgan Page 2 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Account Summary CONTINUED

PRINCIPAL INCOME

Current Year-to-Date Current Year-to-Date Portfolio Activity Period Value Value Period Value Value

Beginning Market Value 22,601,475.48 21 ,435,333.68 11,174.99 12,343.40 Additions 236,035.95 289,720 13 63,593 02 728,739 78 Withdrawals & Fees (1,161,873 07) (2,225,912 29) (92,439.04) (1,130,544.50) Securities Transferred In 66,123 27 -- -- Securities Transferred Out (67,685 67) -- -- Net Additions/Withdrawals ($925,837.12) ($1,937,754.56) ($28,846.02) ($401,804.72) Income 26,93 1 34 398, 721 63 Change In Investment Value 161 19 2,178,220.43 Ending Market Value $21 ,675,799.55 $21,675,799.55 $9,260.31 $9,260.31 Accruals -- -- 5,692.10 5,692.10 Market Value with Accruals -- -- $14,952 .41 $14,952.41

J. P. Morgan Page 3 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Account Summary CONTINUED

Current Year-to-Date Current Year-to-Date Tax Summary Period Value Value Period Value Value

Domestic Dividends/Distributions 20,620.63 392,276.73 LT Capital Gain Distributions 41,299 86 Interest Income 29 47 163 66 ST Realized Gain/Loss 47,033.09 Taxable Income $20,650.10 $392,440.39 LT Realized Gain/Loss 113,426.60 98,306.72 Realized Gain/Loss $113,426.60 $186,639.67 Tax-Exempt Income 6,281.24 6,281.24 Tax-Exempt Income $6,281.24 $6,281.24

To-Date Value

Unrealized Gain/Loss $1,513,615.19

Cost Summary Cost Equity 6,043,690.79 Cash & Fixed Income 8,983,009 64 Total $15,026,700.43

J.P. Morgan Page 4 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Equity Summary

Beginning Ending Change Current Asset Categories Asset Categories Market Value Market Value In Value Allocation US Large Cap Equity 4,112,545 04 4,232,171.59 119,626 55 20% US Mid Cap Equity 579,252.78 591,104.04 11,851.26 3% EAFE Equity 1,466,992.49 1,086,544 08 (380,448.41) 5% European Large Cap Equity 241,484 87 248,231.31 6,746.44 1% European Large Cap Equity Asia ex-Japan Equity 835,777 24 823,221.27 (12,555.97) 4% US Large Cap Equity Emerging Market Equity Emerging Market Equity 467,488.08 443,761 14 (23,726 94) 2% Total Value $7,703,540.50 $7,425,033.43 ($278,507.07) 35% US Mid Cap Equity

Current Asia ex-Japan Equity Market Value/Cost Period Value

Market Value 7,425,033.43 EAFE Tax Cost 6,043,690 79 Unrealized Gain/Loss 1,381,342.64 Equity as a percentage of your portfolio - 35 % Estimated Annual Income 81,699 53 Yield 1.10%

Equity Detail

Adjusted Tax Cost Unrealized Est. Annual Inc. P rice Quantity Value Original Cost Gain/Loss Accrued Div. Yield

US Large Cap Equity

CULLEN HIGH DIVIDEND EQ-I 15 52 45,285.039 702,823 81 578,071 19 124,752.62 16,891.31 240% 230001-40-6 CHDV X

J.P. Morgan Page 5 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Adjusted Tax Cost Unrealized Est Annual Inc. Price Quantity Value Original Cost Gain/Loss Accrued Div Yield

US Large Cap Equity

FMI LARGE CAP FUND 20.02 45,289 855 906,702.90 500,000.00 406,702.90 8,876 81 0.98% LARGE CAP FD 302933-20-5 FMIH X JPM LARGE CAP GROWTH FD - SEL 26.68 27,108.197 723,246 70 602,795.26 120,451.44 5,475.85 076% FUND 3118 4812C0-53-0 SEEG X

JPM US LARGE CAP CORE PLUS FD - SEL 25 .94 37,934 309 984,015.98 841,862 96 142,153.02 15,173.72 1.54% FUND 1002 4812A2-38-9 JLPS X MS MARKET PLUS SPX 10/01/14 102.11 228,000 000 232,799.40 225,150.00 7,649.40 77% CONTIN BARRIER- 0%CPN ,UNCAPPED INITIAL LEVEL-03/28/13 SPX:1569 19 6176 1 J- EP-0 SG REN SPX 06/11 /14 98.04 442,000.000 433,336.80 437,580 00 (4,243 20) 2 XLEV- 7 80%CAP- 15.6%MAXPYMT INITIAL LEVEL-05/24/13 SPX.1649.60 78423E-GX-6

UBS CONT BUFF EQ SPX 10/09/13 109.80 227,000.000 249,246.00 224 ,730 00 24,516.00 79.75% CONTIN BARRIER- 5%CPN 15% CAP INITIAL LEVEL- 09/21/12 SPX - 1460.15 902674-LN,8

Total US Large Cap Equity $4,232,171.59 $3,410,189.41 $821,982.18 $46,417.69 1.10%

JP. Morgan Page 6 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Adjusted Tax Cost Unrealized Est. Annual Inc. Price Quantity Value Original Cost Gain/Loss Accrued Div Yield

US Mid Cap Equity

JPM MID CAP VALUE FD - INSTL 32.42 18,232.697 591,104.04 483,526 52 107,577.52 10,520.26 1.78% FUND 758 339128-10-0 FLMV X

EAFE Equity

ARTISAN INTL VALUE FUND-INV 33.31 24,567 013 818,327.20 627,342 93 190,984.27 7,22270 088% 04314H-88-1 ARTK X

CS BREN EAFE 08/14/13 119.21 225,000.000 268,216.88 222,750.00 45,466.88 10%BUFFER-2 XLEV- 10 75%CAP 21.5%MAXRTRN INITIAL LEVEL-07/27/12:SX5E 2301.23 UKX.5627.21 TPX•726 44 22546T-WV-9

Total EAFE Equity $1,086,544 .08 $850,092.93 $236,451.15 $7,222.70 0.66%

European Large Cap Equity

DB MARKET PLUS SX5E 03/19/14 109.35 227,000 000 248,231.31 224,162.50 24,068.81 80% CONTIN BARRIER- 7.6%CPN ,UNCAPPED INITIAL LEVEL-09/14/12 SX5E:2594 56 2515A1-LR-0

J.P. Morgan Page 7 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1113 to 5/31/13

Adjusted Tax Cost Unrealized Est Annual Inc Price Quantity Value Original Cost Gain/Loss Accrued Div. Yield

Asia ex-Japan Equity

MATTHEWS PACIFIC TIGER FD-IS 2557 32,194.809 823,221.27 608,368.24 214,853 03 6,50335 079% 577130-83-4 MIPT X

Emerging Market Equity

VANGUARD FTSE EMERGING MARKETS ETF 41 54 10,683 000 443,761.14 467,351.19 (23,590.05) 11 ,035 53 2.49% 922042-85- 8 VWO

J.P. Morgan Page 8 of 32 e•

THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Alternative Assets Summary

Beginning Ending Change Current Asset Categories Asset Categories Estimated Value Estimated Value In Value Allocation Hedge Funds 3,367,599 86 3,387,324.22 19,724 36 16% Real Estate & Infrastructure 1,225,324.36 1,259,691 40 34,367.04 6% Hard Assets 427,294 80 407,576.40 (19,718 40) 2% Total Value $5,020,219.02 $5,054,592.02 $34,373.00 24% Hard Assets

Hedge Funds

^^,it G^7^6^tA

Real Estate & Infrastructure yl E

Alternative Assets as a percentage of your portfolio 24 % Alternative Assets Detail -

Estimated Price Quantity Value Cost

Hedge Funds

AVENUE INTERNATIONAL , LTD. - NEW 13,250.81 51 176 678,123 70 500,000 00 ISSUES INELIGIBLE NON-SELF DEALING 4/30/13 FIDUCIARY INVESTORS - LEAD SERIES N/O Client 053592-92-9

JP. Morgan Page 9 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Estimated Price Quantity Value Cost

Hedge Funds

BLACKSTONE PARTNERS OFFSHORE FUND 1,266.58 1,235770 1,565,201.57 1,250,000.00 LTD. CLASS H2 - NEW ISSUES 4/30/13 INELIGIBLE NON-SELF DEALING FIDUCIARY INVESTORS - LEAD SERIES N/O Client 092911-96-5 EATON VANCE GLOBAL MACRO-1 9 81 36,696.635 359,993 99 380,417.53 277923-72-8 EIGM X GOLDENTREE OFFSHORE LTD. (NON- 5,787.53 0.007 40.51 6 36 SELF DEALING FIDUCIARY INVESTORS - 4/30/13 NEW ISSUE INELIGIBLE) SP 1-4 SIDE POCKET N/O Client D98991-92-6 GOLDENTREE OFFSHORE LTD (NON-SELF 1,011.47 61 389 62,093.08 37,628 50 DEALING FIDUCIARY INVESTORS - NEW 4/30/13 ISSUE INELIGIBLE) SP 8-1 SIDE POCKET N/O Client G82981-99-7 GOLDENTREE OFFSHORE LTD. 1,25079 6.845 8,561 66 5,330.47 (NON-SELF DEALING FIDUCIARY 4/30/13 INVESTORS - NEW ISSUE INELIGIBLE) SP 1-5 SIDE POCKET N/O Client G82982-92-0 GOLDENTREE OFFSHORE LTD. 468 78 13.811 6,47431 10,709 59 (NON-SELF DEALING FIDUCIARY 4/30/13 INVESTORS - NEW ISSUE INELIGIBLE) SP 4-1 SIDE POCKET N/O Client G82982-94-6

J.P. Morgan Page 10 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Estimated Pri ce Quantity Value Cost

Hedge Funds

GOLDENTREE OFFSHORE LTD. 710.48 13 478 9,575.90 9,120.43 (NON-SELF DEALING FIDUCIARY 4/30/13 INVESTORS - NEW ISSUE INELIGIBLE) SP 6-1 SIDE POCKET N/O Client G82982-95-3

GOLDENTREE OFFSHORE LTD. (NON-SELF 1,175.72 4.231 4,974.49 2,869.23 DEALING FIDUCIARY INVESTORS - NEW 4/30/13 ISSUE INELIGIBLE) SP 7-1 SIDE POCKET N/O Client G82982-99-5

GOLDENTREE OFFSHORE LTD 1,17945 32.392 38,204.66 48,863.86 (NON-SELF-DEALING FIDUCIARY 4/30/13 INVESTORS-NEW ISSUES INELIGIBLE) CLASS SP 1-1 SIDE POCKET N/O Client 382891-96-8

GOLDENTREE OFFSHORE LTD 2,802.49 230 325 645,482 98 380,236.48 (NON-SELF DEALING FIDUCIARY 4/30/13 INVESTORS) CLASS G-R SERIES 51 N/O Client 387994-91-6

GOLDENTREE OFFSHORE LTD. 1,696.77 1.489 2,526.50 1,378.31 (NON-SELF DEALING FIDUCIARY 4/30/13 INVESTORS - NEW ISSUE INELIGIBLE) SP 1-3 SIDE POCKET N/O Client 387997-91-9

JP. Morgan Page 11 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT P11340000 For the Period 5/1/13 to 5/31/13

Estimated Price Quantity Value Cost

Hedge Funds

GOLDENTREE OFFSHORE LTD. 2,73053 0.714 1,94960 651 12 (NON-SELF DEALING FIDUCIARY 4/30/13 INVESTORS - NEW ISSUE INELIGIBLE) SP 2-1 SIDE POCKET N/O Client 387997-92-7

GOLDENTREE OFFSHORE LTD. 1,01509 4.060 4,121 27 3,204.95 (NON-SELF DEALING FIDUCIARY 4/30/13 INVESTORS - NEW ISSUE INELIGIBLE) SP 3-1 SIDE POCKET N/O Client 387997-96-8

Total Hedge Funds $3 ,387,324.22 $2,630 ,416.83

J.P. Morgan Page 12 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT . P11340000 For the Period 5/1/13 to 5/31/13

Quantity/Original Cost/Net Capital Called Net Distributions Estimated Est. Annual Inc. Commitment Amount Since Inception Since Inception Value Accrued Div. Yield

Real Estate & Infrastructure

BLACKSTONE REAL ESTATE CMBS OFFSHORE 478.58 500,000 00 790,417.07 FUND LTD. NON-SELF DEALING FIDUCIARY 4/30/13 INVESTORS - LEAD SERIES N/O Client 01290C-94-4

GRE II PRIVATE INVESTORS , LLC 475,045 66 500,000 00 469,274 33 FUDICIARY LEAD SERIES 3/29/13 N/O Client 389001-94-2

Total Real Estate & Infrastructure $1,000,000.00 $0.00 $1,259,691.40 $0.00

Amounts shown above under "Estimated Value" for private equity funds are estimates based on the latest fund values received from each underlying fund, which value may be as of a date (underlying fund value date) prior to the period covered by this statement. The values provided by the underlying fund have been adjusted for any cash flows between your account and such fund that have occurred subsequent to the underlying fund value date to derive the "Estimated Value". Therefore, such "Estimated Value" may not reflect the value of your interest shown on any fund's actual books and records as of the date of this statement. For additional information, please contact your J P Morgan representative. For private equity funds, Estimated Values are based on estimates provided by the underlying funds that are generally presented on a US GAAP basis, which records investments at fair value, or" marked-to- market" Most of these underlying funds also present their audited financial statements on a US GAAP basis (i.e., "marked-to-market"). However, some of these underlying funds present their audited financial statements using the Income Tax Basis of Accounting, which records investments "at cost" based on the accrual basis of accounting for Federal income taxes Where the underlying fund provides periodic estimates on a "marked-to-market" basis but reflects investments "at cost" in its audited financial statements, the marked-to-market Estimated Value shown herein for a private equity fund may be materially different from the value reflected on such fund's audited financial statements (which are also based on the audited financial statements of the underlying fund).

JP. Morgan Page 13 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Estimated Price Quantity Value Cost

Hard Assets

POWERSHARES DB COMMODITY INDEX 25 86 6,240.000 161,366 40 171,042.77 TRACKING FUND 73935S-10-5 DBC

UBS PARTICIPATING GOLD NOTE 10/31/13 82.07 300,000 000 246,210.00 297,000 00 LNKD TO GOLDLNPM 85%BARRIER , 14.20%MAXRTN 10/19/12; INITIAL STRIKE: 1737 00 90261 J-LA-9

Total Hard Assets $407,576. 40 $468 ,042.77

JP. Morgan Page 14 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Cash & Fixed Income Summary

Beginning Ending Change Current Asset Categories Asset Categories Market Value Market Value Cash 950,825.98 373,045 46 (577,780.52) 2% US Fixed Income 8,390,432 32 8,320,737 12 (69,695.20) 36% Foreign Exchange & Non-USD Fixed Incom e 536,455 66 502,389.52 (34,066 14) 2% Total Value $9,877 ,713.96 $9, 196,172.10 Foreign Exchange & Non•USD Fixed Income Cash Current a s Market Value/Cost Period Value

Market Value 9,196,172 10 US Fixed Income Tax Cost 8,983,009 64 Unrealized Gain/Loss 213,162 46 Estimated Annual Income 317,566 81 Accrued Interest 5,692.10 Yield 3.45% Cash & Fixed Income as a percentage of your portfolio - 40 %

SUMMARY BY MATU RITY SUMMARY BY TYPE

Market % of Bond Market % of Bond Cash & Fixed Income Value Portfolio Cash & Fixed Income Value Portfolio 0-6 months' 9,196,172.10 100% Cash 373,045 46 4% International Bonds 1 ,711,987 78 18% Mutual Funds 7,111,138 86 78% ' The years indicate the number of years until the bond is scheduled to mature based on the statement end date Some bonds may be called, or paid in full, Total Value $9,196,172.10 100% before their stated maturity.

J.P. Morgan Page 15 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Note: ' This is the Annual Percentage Yield (APY) which is th e rate earned if balances remain on deposit for a full year with compounding, there is no change in the interest rate and all interest Is left in the account Cash & Fixed Income Detail

Adjusted Tax Cost Unrealized Est Annual Income Price Quantity Value Original Cost Gain/Loss Accrued Interest Yield

Cash

US DOLLAR PRINCIPAL 1 00 373,045.46 373,045.46 373,045 46 111.91 0.03%1 16.92

US Fixed Income

PAYDEN HIGH INCOME FUND 7 39 153,643.81 1,135,427.73 1,039,530.07 95,897.66 68,832 42 606% 704329-57-2

JPM STR INC OPP FD 11.95 143,262.58 1,711,987.78 1,679,187.87 32,799.91 61,746 17 361% FUND 3844 4,011.35 4812A4-35- 1 DOUBLELINE TOTAL RET BD-I 11.27 102,921.30 1,159,923.02 1,163,937.55 (4,014.53) 63,811 20 550% 258620-10-3

EATON VANCE FLOATING RATE-I 9 20 173,648.55 1,597,566.63 1,546,281.36 51,285.27 69,285 77 434% 277911-49-1 JPM SHORT DURATION BOND FD - SEL 10 94 207,979 25 2,275,292.94 2,233,819.92 41,473 02 32,028.80 1.41% FUND 3133 1,663.83 4812C 1.33-0 ISHARES BARCLAYS TIPS BOND FUND 116.73 3,77400 440,539 02 457,683 17 (17,144.15) 8,81229 200% 464287-17- 6

Total US Fixed Income $8,320,737.12 $8,120,439.94 $200,297.18 $304,516.65 3.66% $5,675.18

J.P. Morgan Page 16 of 32 THOMAS J WATSON FOUNDATION - PUN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Adjusted Tax Cost Unrealized Est. Annual Income Price Quantity Val ue Original Cost Gain/Loss Accrued Interest Yield

Foreign Exchange & Non-USD Fixed Income

DREYFUS EMG MKT DEBT LOC C-I 14.60 34,410 24 502,389 52 489,524 24 12,865 28 12,938.25 258% 261980-49-4

J.P. Morgan Page 17 of 32 THOMAS J WATSON FOUNDATION - PRIN ACCT. P11340000 For the Period 5/1/13 to 5/31/13

Specialty Assets Summary

Beginning Ending Change Current Asset Categories Estimated Value Estimated Value In Value Allocation Real Estate 2 00 2 00 0.00 1%

Specialty Assets Detail

Interest Percentage Estimated Estimated Type of Ownership Value Cost

Real Estate

11 Park Place SURFACE-REAL ESTATE 100.00% 1.00 1 00 Suite 1503 New York, NY 10007 LEASEHOLD INTEREST Bearer 997608-24- 9

1465 Post Road East, Office A SURFACE-REAL ESTATE 100.00% 1.00 1.00 Westport, CT 06880 LEASEHOLD INTEREST Bearer 997608-25-0

Total Real Estate $2.00 $2.00

J.P. Morgan Page 18 of 32 T.J. WATSON FND. EMPLOYEE BENEFITS ACCT P11340208 For the Period 5/1/13 to 5/31/13 Account Summary

PRINCIPAL

Beginning Ending Change Estimated Current Asset Allocation Market Value Market Value In Val ue Annual Income Allocation

Cash & Fixed Income 4,18002 4,18002 0.00 1 25 100% Market Value $4,180.02 $4,180.02 $0.00 $1.25 100%

PRINCIPAL

Current Year-to-Date Portfolio Activity Period Value Value

Beginning Market Value 4,180.02 2,054.01 Additions 8,258. 04 Withdrawals & Fees (6,132.03) Net Additions/Withdrawals $0.00 $2,126.01 Ending Market Value $4,180.02 $4,180.02

Cost Summary Cost Cash & Fixed Income 4,18002 Total $4,180.02

J.P. Morgan Page 2 of 5 T.J. WATSON FND. EMPLOYEE BENEFITS ACCT. P11340208 For the Period 5/1/13 to 5/31/13

Cash & Fixed Income Summary

Beginning Ending Change Current Asset Categories Market Value Market Value In Value Allocation Cash 4,180 02 4,180 02 0.00 100%

Current Market Value/Cost Period Value Market Value 4,180.02 Tax Cost 4,180 02 Estimated Annual Income 1 25 Yield 003%

SUMMARY BY MATURITY SUMMARY BY TYPE

Market % of Bond Market % of Bond Cash & Fixed Income Value Portfolio Cash & Fixed Income Value Portfolio 0-6 months' 4.18002 100% Cash 4,180.02 100%

The years indicate the number of years until the bond is scheduled to mature based on the statement end date Some bonds may be called, or paid in full, before their stated maturity

JP. Morgan Page 3 of 5 T.J. WATSON FND. EMPLOYEE BENEFITS ACCT. P11340208 For the Period 5/1113 to 5/31/13

Note ' This is the Annual Percentage Yield (APY) which is the rate earned if balances remain on deposit for a full year with compounding , there is no change in the interest rate and all interest is left in the account. Cash & Fixed Income Detail

Adjusted Tax Cost Unrealized Est Annual Income Price Quantity Value Original Cost Gain/Loss Accrued Interest Yield

Cash

US DOLLAR PRINCIPAL 1 00 4,180.02 4,18002 4,18002 1.25 003%1

J.P.Morgan Page 4 of 5 THOMAS J. WATSON FOUNDATION - RUANE ACCT . Q71482006 As of 5/31/13 Account Summary

Beginning Ending Change Estimated Current Asset Allocation Asset Allocation Market Value Market Value In Value Annual Income Allocation

Equity 57,734,945.73 60,152,302.33 2,417,356.60 300,142 64 91% Cash & Fixed Income 4,388,821 56 5,532,354 63 1,143 533 05 703.22 9% Market Value $62,123,767.31 $65,684,656.96 $3,560,889.65 $300 ,845.86 100%

Accruals 28,959 06 35,983 14 7,02408 Cash & Fixed Income Market Value with Accruals $62,152,726.37 $65,720,640 .10 $3,567,913.73

Equity

Cost Summary Cost Equity 22,875,224.05 Cash & Fixed Income 5,531,760.63

Total $28,406,984.68

J.P. Morgan Page 2 of 10 THOMAS J. WATSON FOUNDATION - RUANE ACCT. Q71482006 As of 5/31/13

Equity Summary

Beginning Ending Change Current Asset Categories Asset Categories Market Value Market Value In Value Allocation

US Large Cap Equity 38,919,060 87 39,102,335 21 183,274 34 58% Non-US Equity 18,789,312.25 21,021,967.09 2,232,654 84 32% Preferred Stocks 26,572 61 28,000.03 1,42742 1% Total Value $57,734 ,945.73 $60, 152,302 . 33 $2,417,356.60 91% Preferred Stocks

US Large Cap Equity Current Market Value/Cost Period Value Non-US Equity Market Value 60,152,302.33 Tax Cost 22,875,224 05 Unrealized Gain/Loss 37,277,078.28 Estimated Annual Income 300,142.64 Accrued Dividends 35,965.86 Yield 0.49% Equity as a percentage of your portfolio - 91 %

Note: •• Unrealized Gain/Loss is shown as "N/A" in cases where we do not have appropriate cost information for all tax lots comprising the position. Please contact your J.P. Morgan team for additional information. Equity Detail

J.P. Morgan Page 3 of 10 THOMAS J. WATSON FOUNDATION - RUANE ACCT. 071482006 As of5/3 1113

Adjusted Tax Cost Unrealized Est. Annual Inc. Pri ce Quantity Value Original Cost Gain/Loss Accrued Div. Yield

US Large Cap Equity

ADVANCED AUTO PARTS INC 81 52 22,228.000 1,812,026.56 942,986.17 869,040 39 5,334.72 029% 00751 Y-1 0-6 AAP

AMERICAN EXPRESS CO 75 71 22,000 000 1,665,620 00 575,198.88 1,090,421 12 20,240.00 1.22% 025816-10-9 AXP

BERKSHIRE HATHAWAY INC 171,300 00 36.000 6,166,800 00 1,167,527 33 4,999,272.67 CL A 084670-10-8 BRK A

BERKSHIRE HATHAWAY INC DEL CL B 114.07 899 000 102,548 93 44,687.41 57,861.52 084670-70-2 BRK B

COSTCO WHOLESALE CORP 10963 9,500.000 1,041,494.50 291,685.70 749,808.80 11,780.00 113% 22160K-1 0-5 COST

EMCOR GROUP INC 39 75 8,138 000 323,485.50 219,900 54 103,584 96 1,953 12 060% 29084 0- 1 0-0 E M E

FASTENAL CO 52 18 77,187.000 4,027,617.66 530,523 75 3,497,093 91 61,749.60 1.53% 311900-10-4 FAST

GOLDMAN SACHS GROUP INC 162.08 5,426 000 879,446.08 795,001 15 84,444.93 10,852.00 123% 38141 G-10-4 G S 2,71300 GOOGLE INC 871 22 1,583.000 1,379,138 09 761,042 66 618,095 43 CL A 38259P-50-8 GOOG IDEXX LABATORIES INC 82.44 21,743.000 1,792,492.92 508,563.33 1,283,929.59 45168D-10-4 IDXX

JACOBS ENGINEERING GROUP INC 57.01 6,993 000 398,670 93 272,117.93 126,553.00 469814-10-7 JEC MOHAWK INDUSTRIES INC 111 17 14,006 000 1,557,047 02 622,250.89 934,796.13 608190-10-4 MHK

J. P. Morgan Page 4 of 10 THOMAS J. WATSON FOUNDATION - RUANE ACCT. 071482006 As of 5/31/13

Adjusted Tax Cost Unrealized Est. Annual Inc. Price Quantity Val ue Original Cost Gain/Loss Accrued Div. Yield

US Large Cap Equity

0 REILLY AUTOMOTIVE INC NEW 108 85 5,975 000 650,378.75 486,494.72 163,884.03 COM 67103H-10-7 ORLY OMNICOM GROUP INC 62 13 13,100 000 813,903 00 328,165.29 485,737.71 20,960 00 2 58% 68 1 919- 1 0-6 OMC PERRIGO CO 115 84 6,362 000 736,974 08 351,180.60 385,793.48 2.29032 031% 714290-10-3 PRGO 572.58 PRAXAIR INC 114 33 6,718 000 768,068.94 555,976.31 212,092.63 16,123 20 2.10% 74005 P-10-4 PX PRECISION CASTPARTS CORP 213 92 11,333 000 2,424,355.36 769,092.65 1,655,262.71 1,359 96 0 06% 740189-10-5 PCP SIRONA DENTAL SYSTEMS INC 70 94 10,950 000 776,793 00 455,410.53 321,382 47 82966C- 1 0-3 S I RO TIFFANY & CO 77.78 7,942.000 617,728.76 475,924.73 141,804.03 10,801 12 175% 886547-10-8 TIF TJX COMPANIES INC 50 61 142,980 000 7,236,217 80 744,485 79 6,491,732.01 82,928 40 1.15% 872540-10-9 TJX 20,732.10 TRIMBLE NAVIGATION LTD 27.90 12,362.000 344,899 80 208,123 68 136,776.12 896239- 10-0 TRM B VISA INC CLASS A SHARES 178.14 4,925.000 877,339 50 380,598 75 496,740.75 6,501.00 0.74% 92826C-83-9 V 1,625.25 WALMART STORES INC 74.84 17,008 000 1,272,878.72 748,570.11 524,308.61 31,975.04 251% 931142-10-3 WMT 7,99376 WATERS CORP 96 71 7,731 000 747,665 01 585,698 48 161,966 53 941848-10-3 WAT

J.P.Morgan Page 5 of 10 THOMAS J. WATSON FOUNDATION - RUANE ACCT. 071482006 As of 5/31/13

Adjusted Tax Cost Unrealized Est Annual Inc Price Quantity Value Original Cost Gain/Loss Accrued Div. Yield

US Large Cap Equity WORLD FUEL SERVICE CORP 4073 16,910 000 688,744.30 584,054 61 104,689.69 2,536.50 037% 981475-10-6 INT

Total US Large Cap Equity $39,102,335.21 $13,405,261.99 $25,697,073.22 $287,384.98 0.74% $33,636.69

Non-US Equity

CANADIAN NATURAL RESOURCES LTD 29.77 3,630.000 108,065 10 50,779.83 57,285.27 1,79685 1 66% 136385-10-1 CNQ CRODA INTERNATIONAL PLC 37 34 15,590.000 582,154.64 390,970 96 191,183 68 ISIN GB0002335270 SEDOL 0233527 G25536-91-6 GBP EXOR RSP 31 88 270 000 8,608 .03 7,64771 960.32 ISIN IT0004436447 SEDOL B5YS5H6 609995-92-3 EUR EXOR SPA 31 89 3,490 000 111,312.01 121,548 90 (10,236 89) ISIN IT0001353140 SEDOL B06HZC1 609995-91-5 EUR EXOR SPA - RTS unpriced 4,644.000 N/A N/A " N/A N/A N/A (EXPRIES: 6/5/2013) ISIN IT0004919814 SEDOL B92NVW8 609995-93-1 EUR EXOR SPA unpriced 4,644.000 N/A N/A •` N/A N/A N/A (EXPRIES 5/6/2013) ISIN IT0004919822 SEDOL B96TZ20 609995-94-9 EUR

JP. Morgan Page 6 of 10 THOMAS J. WATSON FOUNDATION - RUANE ACCT . Q71482006 As of 5/31/13

Adjusted Tax Cost Unrealized Est. Annual Inc. Price Quantity Value Original Cost Gain/Loss Accrued Div. Yield

Non-US Equity

HISCOX 8.41 68 ,275.000 573 ,972 49 389 ,634 26 184,338 23 ISIN BMG4593F1124 SEDOL B94Y1F2 564814 -91-1 GBP IMI PLC 19.60 28 ,651.000 561,650 48 419,855 02 141,795.46 ISIN GB0004579636 SEDOL 0457963 450994-91 -8 GBP NOVOZYMES A/S-B SHARES 34.54 19,995.000 690,687.29 533,834.59 156,852.70 HELD BY EUROCLEAR SIN DKO060336014 SEDOL B798FW0 K7317J-92-7 NVZM F DKK PIRELLI & C SPA 11.59 128 ,848.000 1,493,698.66 1,465, 131.65 28,567.01 HELD BY EUROCLEAR SIN IT0000072725 SEDOL 4689803 D8905Q-91-7 EUR QINETIQ GROUP PLC 2.81 281,595.000 791,094.13 687,588.83 103,505 30 ISIN GBOOBOWMWD03 SEDOL BOWMWDO G7303P-91-6 GBP RITCHIE BROTHERS AUCTIONEERS INC 2070 22,369 000 463,038 30 389,520 10 73,518.20 10,960 81 237% 767744-10-5 RBA 2,329.17 ROLLS ROYCE GROUP PLC 18 27 181,000 000 3,306,689 72 1,677,260 86 1,629,428.86 SIN GB00B63H8491 SEDOL B63H849 G7630V-93-3 GBP ROLLS ROYCE GROUP C SHARES unpriced 21,539,000 000 N/A N/A N/A N/A N/A ENTITLEMENT (JULY 2013) SIN GBOOB9KGVK73 SEDOL B9KGVK7 21,539,000 Reserved Corp Action 485114-91-2 GBP

J.P.Morgan Page 7 of 10 THOMAS J. WATSON FOUNDATION - RUANE ACCT . 071482006 As of 5/31/13

Adjusted Tax Cost Unrealized Est. Annual Inc. Price Quantity Value Original Cost Gain/Loss Accrued Div Yield

Non-US Equity

VALEANT PHARMACEUTICALS INTE 91.12 135,327 000 12,330,996.24 3,310,342 10 9,020,654 14 91911 K-10-2 VRX

Total Non-US Equity $21,021,967.09 $9 ,444,114.81 $11 ,577,852 .28 $12 ,757.66 0.06% $2,329.17

Preferred Stocks

IFI-ISTITUTO FINANZIARIO IND 31.67 884 .000 28,000.03 25,847 25 2,15278 ISIN IT0001353157 SEDOL 5733107 T56970-91-5 EUR

J.P. Morgan Page 8 of 10 THOMAS J. WATSON FOUNDATION - RUANE ACCT. Q71482006 As of 5/31/13

Cash & Fixed Income Summary

Beginning Ending Change Current Asset Categories Asset Categories Market Value Market Value In Value Allocation

Cash 1, 388,881 .58 2,532,35463 1,143,47305 4% Short Term 2,999 ,940.00 3,000,000 00 60 00 5% Total Value $4,388,821.58 $5,532,354.63 $1 , 143,533.05 9%

Short Term Current Market Value/Cost Period Value Market Value 5,532,354.63

Tax Cost 5,531,760 63 Cash A^4J Unrealized Gain/Loss 594 00 Estimated Annual Income 703 22 Accrued Interest 17.28 Yield 0.01 %

Cash & Fixed Income as a percentage of your portfolio - 9 % SUMMARY BY MATURITY SUMMARY BY TYPE

Market % of Bond Market % of Bond Cash & Fixed Income Value Portfolio Cash & Fixed Income Value Portfolio 0-6 months' 5,532,354 63 100% Cash 2,532,354.63 45% Govt and Agency Bonds 3,000,000.00 55%

' The years indicate the number of years until the bond is scheduled to mature Total Value $5,532,354.63 100% based on the statement end date. Some bonds may be called, or paid in full, before their stated maturity.

J.P. Morgan Page 9 of 10 THOMAS J. WATSON FOUNDATION - RUANE ACCT 071482006 As of 5/31/13

Note, ' This is the Annual Percentage Yield (APY) which is the rate earned if balances remain on deposit for a full year with compounding , there is no change in the interest rate and all interest is left in the account Cash & Fixed Income Detail

Adjusted Tax Cost Unrealized Est Annual Income Price Quantity Value Original Cost Gain/Loss Accrued Interest Yield

Cash

US DOLLAR PRINCIPAL 1 00 2,391,374.25 2,391,374.25 2,391,374 25 239.13 0.01%1 US DOLLAR INCOME 1 00 140,980.38 140,980.38 140,980 38 14.09 0 01 % 1 17.28

Total Cash $2,532,354.63 $2,532,354 .63 $0.00 $253.22 0.01 % $17.28

Short Term

US TREAS BILL 06/06/13 100 00 3,000,000.00 3,000,000 00 2 ,999,406 00 594 00 45000 002% 912796-AJ-8 NR /NR

J.P. Morgan Page 10 of 10 THE THOMAS 1 WATSON FD - ASHFIELD ACCT . A56656001 For the Period 5/1/13 to 5/31/13 Account Summary

Beginning Ending Change Estimated Current Asset Allocation Market Value Market Value In Value Annual Income Allocation

Equity 692,779.33 713 061.48 20,282.15 7,372 93 100% Market Value $692,779 .33 $713,061.48 $20,282.15 $7,372.93 100% Accruals 539.91 641 04 101.13 Market Value with Accruals $693,319 .24 $713 ,702.52 $20,383.28

Current Year-to-Date Portfolio Activity Period Value Value

Beginning Market Value 692,779.33 589,011.11 Contributions 9.38 Withdrawals & Fees (91 25) (9,101 69) Net Contributions/Withdrawals ($91.25) ($9,092.31) Income & Distributions 929.22 7,392 53 Change In Investment Value 19,444.18 125 750.15 Ending Market Value $713 ,061.48 $713 ,061.48 Accruals 641 04 641.04 Market Value with Accruals $713,702.52 $713,702.52

JP. Morgan Page 2 of 14 THE THOMAS J WATSON FD - ASHFIELD ACCT . A56656001 For the Period 5/1/13 to 5/31/13

Account Summary CONTINUED

Current Year-to-Date Current Year-to-Date Tax Summary Period Value Value Period Value Value

Domestic Dividends/Di stri buti ons 452. 55 6,002.27 ST Reali zed Gain/Loss 1,955.78 (3,733 56) Foreign Dividends 476.37 1,387 04 LT Real ized Gai n/Loss 5,396.93 41,594 87 Interest Income 0.30 3 22 Realized Gain/Loss $7,352.71 $37,861.31 Taxable Income $929.22 $7,392.53

To-Date Value Unrealized Gain/Loss $227,266.03

Cost Summary Cost Equity 485,795.45

Total $485,795.45

JP. Morgan Page 3 of 14 THE THOMAS J WATSON FD - ASHFIELD ACCT. A56656001 For the Period 5/1113 to 5/31113

Equity Summary

Beginning Ending Change Current Asset Categories Market Value Market Value In Value Allocation US Large Cap Equity 692 ,779 33 713, 061 48 20 , 282 15 100%

Current Market Value/Cost Period Value Market Value 713,061 48 Tax Cost 485,795.45 Unrealized Gain/Loss 227,266.03 Estimated Annual Income 7,372.93 Accrued Dividends 641 04 Yield 1.03%

JP. Morgan Page 4 of 14 THE THOMAS J WATSON FD - ASHFIELD ACCT. A56656001 For the Period 5/1/13 to 5/31/13

Note, P indicates position adjusted for Pending Trade Activity This is the Annual Percentage Yield (APY) which is the rate earned if balances remain on deposit for a full year with compounding, th ere is no change in the interest rate and all interest is left in the account. Equity Detail

Adjusted Tax Cost Unrealized Est Annual Inc Price Quantity Value Original Cost Gain/Loss Accrued Div Yield

US Large Cap Equity

ACCENTURE PLC-CL A 82 11 140.000 11,495 40 4,011 00 7,484.40 226 80 197% G 11 5 1 C- 1 0- 1 ACN

ALLERGAN INC 99.49 65.000 6,466.85 4,11568 2,351.17 13 00 020% 018490-10-2 AGN 3.25 AMAZON COM INC 269 .20 35.000 9,422 00 6,12354 3,29846 023135-10-6 AMZN

P AMERIPRISE FINANCIAL INC 8152 145.000 11,82040 7,793.05 4,027.35 30160 2.55% 03076C-1 0-6 AMP

ANADARKO PETROLEUM CORP 87.47 125.000 10,933.75 7,740.50 3,193 25 45.00 041% 0325 11-1 0-7 AP C

ANALOG DEVICES INC 45.93 235 000 10,793.55 9,31439 1,479 16 319 60 296% 032654-10-5 ADI 79.90

ANHEUSER BUSCH INBEV SA/NV 91.92 150 000 13,788 00 11, 598.69 2 ,189.31 277.35 201% SPONS ADR 03524A-10-8 BUD

APPLE INC . 449.74 80 000 35,978.80 7,62991 28,348 89 976.00 2.71 % 037833-10-0 AAPL

ARM HOLDINGS PLC 43.88 235 000 10,311.80 6,60659 3,70521 43 00 042% SPONS ADR 042068-10-6 ARMH

JP. Morgan Page 5 of 14 THE THOMAS J WATSON FD - ASHFIELD ACCT . A56656001 For the Period 5/1113 to 5/31/13

Adjusted Tax Cost Unrealized Est Annual Inc Price Quantity Value Original Cost Gain/Loss Accrued Div. Yield

US Large Cap Equity

ASML HOLDING N.V. 81 .27 92.000 7,47684 7,066.07 41077 54 00 072% N07059-21 -0 ASML

P BLACKROCK INC 279 20 38.000 10,609 60 9,366.63 1,242.97 255 36 241% 09247X-10-1 BLK

BORG -WARNER INC 81 07 180.000 14,592 60 7,517.30 7,07530 099724-10-6 BWA

BROADCOM CORP 35.91 290 000 10,413 90 10,960 24 (54634) 127.60 1.23% CL A 31.90 111320-10-7 BR C M

CAMERON INTERNATIONAL CORPORATION 6087 230.000 14,000 10 8,441.83 5,558.27 13342B -10-5 CAM

CELGENE CORPORATION 123 65 125.000 15,456.25 7,72470 7,731 55 151020-10-4 CELG

CERNER CORP 98.16 95 000 9,325 .20 2,80203 6,52317 156782-10-4 CERN

CHEVRON CORP 122.75 75 000 9,206.25 7,238.60 1,967.65 300 00 326% 166764-10-0 CVX 75 00 COGNIZANT TECHNOLOGY SOLUTIONS CORP 64 65 135.000 8,72775 3,444.02 5,283.73 CL A 192446-10-2 CTSH

COST OF PENDING PURCHASES 1. 00 ( 18,934.130) (18, 934.1 3) (18,934 13) DANAHER CORP 61.82 200 000 12,364 00 5,87037 6,493.63 2000 016% 235851-10-2 DHR

DEERE & CO 87 11 145.000 12,630 95 11,479.21 1,151.74 295.80 2.34% 244199-10-5 DE

JP. Morgan Page 6 of 14 THE THOMAS J WATSON FD - ASHFIELD ACCT. A56656001 For the Period 5/1/13 to 5/31/13

Adjusted Tax Cost Unrealized Est. Annual Inc. Price Quantity Value Original Cost Gain/Loss Accrued Div Yield

US Large Cap Equity

DIAGEO P L C 118 26 115 .000 13,599 90 9 ,401 76 4,198.14 325.22 2.39% SPONS ADR NEW 25243Q-20-5 DEO

DOLLAR GENERAL CORP 52 80 190 000 10,032 00 9,597.60 43440 256677-10-5 DG

E M C CORP MASS 24.76 565.000 13,989.40 11,979 34 2,01006 226.00 1.62% 268648-10-2 EMC

EBAY INC 54 10 320.000 17,312.00 9,75925 7,552.75 278642-10-3 EBAY

EOUINIX INC 202.64 85 000 17,224 40 8,042.85 9,181 55 29444U-50-2 EQIX

EXPRESS SCRIPTS HOLDING 62.12 160 000 9,93920 5,688.87 4,25033 COMPANY 30219G-10-8 ESRX

FLOWSERVE CORP 168.13 65 000 10,928 45 8 ,278.48 2,64997 109 20 1 00% 34354 P-10-5 FLS

FLUOR CORP 63.21 160.000 10,113 60 9,66441 449 19 102 40 101% 343412-1 0-2 FL R 25 60

P GOLDMAN SACHS GROUP INC 162 08 70.000 11,345 60 10,632 64 712,96 140 00 1.23% 38 141 G-1 0-4 GS 22 50 GOOGLE INC 871.22 30 000 26,136.54 15 ,566 58 10, 569.96 CL A 38259P-50-8 GOOG

HAIN CELESTIAL GROUP INC 6662 120.000 7,994 40 6,91778 1,076 62 4052 17-1 0-0 HAIN

HENRY SCHEIN INC 96.29 150 000 14,443 50 6,525.00 7,91850 806407-10-2 HSIC

JP. Morgan Page 7 of 14 THE THOMAS J WATSON FD - ASHFIELD ACCT . A56656001 For the Period 5/1113 to 5/31/13

Adjusted Tax Cost Unrealized Est Annual Inc Price Quantity Value Original Cost Gain/Loss Accrued Div. Yield

US Large Cap Equity

INTERNATIONAL BUSINESS MACHINES CORP 208 02 51 000 10,609 02 4,936 94 5 ,672.08 193 80 1.83% 459200- 10-1 IBM 48 45 P LULULEMON ATHLETICA INC WA 77 81 90.000 7,002.90 5,723 62 1,279.28 550021-1 0-9 LULU MICHAEL KORS HOLDINGS LTD 62.82 255.000 16,019.10 10,356.22 5,66288 G60754-1 0- 1 KO RS MONSANTO CO 100 64 140 000 14,089 60 12,511 67 1,577.93 210 00 1.49% 61166W-10-1 MON P OCWEN FINANCIAL CORP 42.78 260.000 11,122 80 10,913.56 20924 675746-30-9 OCN PIONEER NATURAL RESOURCES CO 138 68 85 .000 11,787.80 4,867 56 6,920.24 6 80 006% 723787-10-7 PXD PRECISION CASTPARTS CORP 213 92 40.000 8,556.80 6,58016 1,976.64 4.80 0.06% 740 1 89- 1 0-5 PCP PRICELINE.COM INC 803.93 15.000 12,058 95 1,030.61 11,028 34 741503-40-3 PCLN PROCEEDS FROM PENDING SALES 1. 00 17,147.260 17,147.26 17,147.26 QUALCOMM INC 6348 310 000 19,678.80 19,277 64 401.16 434.00 2.21% 747525-10-3 QCOM RALPH LAUREN CORPORATION 175.09 55.000 9.62995 5,192.15 4,43780 88.00 091% 751212-10-1 RL ROCKWELL AUTOMATION INC 8802 160 000 14,083.20 13,213 78 869.42 332 80 2.36% 773903- 1 0-9 RO K 8320 SCHLUMBERGER LTD 7303 180.000 13,145 40 12,362 89 782 51 225.00 171% 806857-10-8 SLB

J.P. Morgan Page 8 of 14 C-

THE THOMAS J WATSON FD - ASHFIELD ACCT . A56656001 For the Period 5/1/13 to 5131113

Adjusted Tax Cost Unrealized Est Annual Inc Price Quantity Value Original Cost Gain/Loss Accrued Div Yield

US Large Cap Equity

STARBUCKS CORP 63.14 120.000 7,576.80 6,958.90 617.90 100 80 1.33% 855244-10-9 SBUX

THE ESTEE LAUDER COMPANIES INC 67.78 215.000 14,572 70 10,843 50 3,72920 154.80 106% CL A 3870 518439-10-4 EL

THERMO FISHER SCIENTIFIC INC 88.30 150 000 13,245 00 7,85756 5,38744 9000 068% 883556 -10-2 TMO

TRIMBLE NAVIGATION LTD 27.90 500 000 13,950.00 14,410.51 (460 51) 896239 -10-0 TRMB

UNION PACIFIC CORP 154 62 105.000 16,235.10 6,633.63 9,601 47 289.80 179% 907818 -10-8 UNP 72.45 UNITED TECHNOLOGIES CORP 94.90 160.000 15,184.00 12,012.70 3,171 30 342.40 2.26% 913017-10-9 UTX 85.60 P URBAN OUTFITTERS INC 41 93 315 000 13,207.95 12,235 06 972.89 917047-10-2 URBN

P US BANCORP DEL 35 06 0.00 2,22% 902973-30-4 USB

US DOLLAR 1 00 8,025.170 8,025.17 8,025.17 2.40 0.03% 0 24 V F CORP 183 86 40 .000 7,354.40 6,513.20 841 .20 139 20 1.89% 918204-10-8 VFC

VALEANT PHARMACEUTICALS INTE 91 .12 105.000 9,567.60 6,888.52 2,67908 91911 K-10-2 VRX

VARIAN MEDICAL SYSTEMS INC 67.01 133.000 8,912.33 7,401.11 1,51122 92220 P-1 0-5 VAR

WALGREEN CO 47.76 270.000 12,895.20 9,678.91 3,21629 297.00 2 30% 931422-10-9 WAG 7425

JP. Morgan Page 9 of 14 THE THOMAS J WATSON FD - ASHFIELD ACCT. A56656001 For the Period 5/1/13 to 5/31/13

Adjusted Tax Cost Unrealized Est. Annual Inc Price Quantity Value Original Cost Gain/Loss Accrued Div. Yield

US Large Cap Equity

WALT DISNEY CO 63 08 140.000 8,831.20 6,02678 2,80442 105.00 1 19% 254687-10-6 DIS

WILLIAMS SONOMA INC 53.96 160 000 8,63360 6,231.06 2,402.54 198.40 2.30% 969904-10-1 WSM

Total US Large Cap Equity $713,061.48 $485,795.45 $227,266.03 $7,372.93 1.03% $641.04

JP. Morgan Page 10 of 14