l efile GRAPHIC print - DO NOT PROCESS As Filed Data - DLN:93491319010058 OMB No 1545-0052 Form 990-PF Return of Private Foundation Department of the Trea^un or Section 4947(a)(1) Trust Treated as Private Foundation Internal Rev enue Ser ice 2017 ► Do not enter social security numbers on this form as it may be made public. ► Information about Form 990-PF and its instructions is at www.irs.gov/form990pf. For calendar year 2017, or tax year beginning 01 -01-2017 , and ending 12-31-2017 Name of foundation THE KAVLI FOUNDATION 77-0560142 Number and street (or P 0 box number if mail is not delivered to street address) Room/suite B Telephone number (see instructions) 5715 MESMER AVENUE (424) 353-8800 City or town, state or province, country, and ZIP or foreign postal code LOS ANGELES, CA 90230 C If exemption application is pending, check here q G Check all that apply q Initial return q Initial return of a former public charity D 1. Foreign organizations, check here q ► q Final return q Amended return 2 Foreign organizations meeting the 85% test, check here and attach computation ► El El Address change El Name change E If private foundation status was terminated H Check typ e of org anization q Section 501(c)(3) exem p t p rivate foundation under section 507(b)(1)(A), check here ► q Section 4947(a)(1) nonexempt charitable trust q Other taxable private foundation I Fair market value of all assets at end J Accounting method q Cash 9 Accrual F If the foundation is in a 60-month termination q of year (from Part II, col (c), under section 507(b)(1)(B), check here q ► line 16)101$ 652,144,820 Other (specify) (Part I, column (d) must be on cash basis ) Analysis of Revenue and Expenses (The total ( a) Revenue and (d) Disbursements (b) Net investment (c) Adjusted net for charitable of amounts n columns (b), (c), and (d) may not necessarily expenses per income income purposes books basis equal the amounts n column (a) (see instructions) ) (cash s only) 1 Contributions, gifts, grants, etc , received (attach 7,627,453 schedule) q 2 Check ► if the foundation is not required to attach Sch B . 3 Interest on savings and temporary cash investments 4 Dividends and interest from securities . 476,545 8,828,377 5a Gross rents . 1,294,592 1,294,592 b Net rental income or (loss) 1,294,592 a> 6a Net gain or (loss) from sale of assets not on line 10 42,732,927 b Gross sales price for all assets on line 6a 108, 432, 611 7 Capital gain net income (from Part IV, line 2) . 62,182,203 8 Net short-term capital gain . 9 Income modifications . 10a Gross sales less returns and allowances b Less Cost of goods sold . c Gross profit or (loss) (attach schedule) . 11 Other income (attach schedule) . 0 1,528,880 12 Total . Add lines 1 through 11 . 52,131,517 73,834,052 13 Compensation of officers, directors, trustees, etc 1,110,227 75,500 1,081,356 14 Other employee salaries and wages . 2,258,782 50,720 1,944,014 0 15 Pension plans, employee benefits . 799,947 3,240 736,648 ^C 16a Legal fees (attach schedule) . JJ 122,471 0 123,491 R. b Accounting fees (attach schedule) . 30,314 829 46,800 X w c Other professional fees (attach schedule) . 345,470 162,560 132,094 17 Interest 18 Taxes (attach schedule) (see instructions) 1,872,178 556,050 169,934 19 Depreciation (attach schedule) and depletion . 376,790 143,941 20 Occupancy . 44,281 0 49,186 21 Travel, conferences, and meetings . 727,187 3,729 729,860 22 Printing and publications . 23 Other expenses (attach schedule) . 833,218 10,528,882 623,232 24 Total operating and administrative expenses. Add lines 13 through 23 . 8,520,865 11,525,451 5,636,615 25 Contributions, gifts, grants paid . 23,206,545 26,073,065 26 Total expenses and disbursements . Add lines 24 and 25 31,727,410 11,525,451 31,709,680 27 Subtract line 26 from line 12 a Excess of revenue over expenses and 20,404,107 disbursements b Net investment income (if negative, enter -0-) 62,308,601 c Adjusted net income (if negative, enter -0-) . For Paperwork Reduction Act Notice, see instructions . Cat No 11289X Form 990-PF (2017) Form 990-PF (2017) Page 2 Beginning of year End of year Balance Sheets Attached schedules and amounts in the description column ® should be for end-of-year amounts only (See instructions (a) Book Value (b) Book Value (c) Fair Market Value 1 Cash-non-interest-bearing . 285,641 2,208,645 2,208,645 2 Savings and temporary cash investments . 32,518,154 17,988,883 17,988,883 3 Accounts receivable ► 62,436 Less allowance for doubtful accounts ► 955 62,436 62,436 4 Pledges receivable ► 16,298,910 Less allowance for doubtful accounts ► 153,762,034 16,298,910 16,298,910 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 ► ,A 8 Inventories for sale or use . N 9 Prepaid expenses and deferred charges . 74,836 91,664 91,664 Q 10a Investments-U S and state government obligations (attach schedule) b Investments-corporate stock (attach schedule) . 36,640,834 0 0 c Investments-corporate bonds (attach schedule) . 797,243 0 0 11 Investments-land, buildings, and equipment basis ► 21,232,461 Less accumulated depreciation (attach schedule) ► 906,581 8,969,821 20,325,880 20,325,880 12 Investments-mortgage loans . 13 Investments-other (attach schedule) . 371,600,828 ^J 577,865,528 577,865,528 14 Land, buildings, and equipment basis ► 17,267,001 Less accumulated depreciation (attach schedule) ► 495,386 12,717,806 16,771,615 16,771,615 15 Other assets (describe ► ) ^J 441,987 J 531,259 531,259 16 Total assets (to be completed by all filers-see the instructions Also, see page 1, item I) 617,810,139 652,144,820 652,144,820 17 Accounts payable and accrued expenses . 433,789 871,989 18 Grants payable . 58,280,853 55,394,295 o 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 ► ) 1?j 1,469,317 9J 2,733,651 23 Total liabilities (add lines 17 through 22) . 60,183,959 58,999,935 Foundations that follow SFAS 117, check here a> and complete lines 24 through 26 and lines 30 and 31. U 24 Unrestricted . 557,626,180 593,144,885 25 Temporarily restricted 26 Permanently restricted . q Foundations that do not follow SFAS 117 , check here ► and complete lines 27 through 31. 27 Capital stock, trust principal, or current funds 28 Paid-in or capital surplus, or land, bldg , and equipment fund 29 Retained earnings, accumulated income, endowment, or other funds d Z 30 Total net assets or fund balances (see instructions) . 557,626,180 593,144,885 31 Total liabilities and net assets / fund balances (see instructions) 617,810,139 652,144,820 Analysis 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 ) . 1 557 , 626,180 2 Enter amount from Part I, line 27a . 2 20,404,107 3 15, 114,598 3 Other increases not included in line 2 ( itemize ) ► 4 Add lines 1 , 2, and 3 . I 4 593 , 144,885 5 Decreases not included in line 2 (itemize) ► 6 Total net assets or fund balances at end of year (line 4 minus line 5)-Part II, column (b), line 30 593,144,885 Form 990-PF (2017) Form 990-PF (2017) Page 3 Capital Gains and Losses for Tax on Investment Income How acquired List and describe the kind(s) of property sold (e g , real estate, Date acquired Date sold P-Purchase 2-story brick warehouse, or common stock, 200 shs MLC Co (mo , day, yr) (mo , day, yr ) D-Donation 1 a CAPITAL GAINS - PARTNERSHIP b GAIN ON SALE OF SECURITIES C d e ( e) (f) (g) (h) Depreciation allowed Cost or other basis Gain or (loss) Gross sales price (or allowable) plus expense of sale (e) plus (f) minus (g) a 19,449,276 b 108,432,611 42,732,927 C d e Complete only for assets showing gain in column (h) and owned by the foundation on 12/31/69 (I) (j) (k) Gains (Col (h) gain minus ( i ) Adjusted basis Excess of col (i) col (k), but not less than -0-) or F M V as of 12/31/69 as of 12/31/69 over col (3), if any Losses (from col (h)) a 19,449,276 b 42,732,927 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 62,182,203 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 Part I, line 8 . i 3 Ei^ 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? q Yes W No If "Yes," the foundation does not qualify under section 4940(e) Do not complete this part 1 Enter the appropriate amount in each column for each year, see instructions before making any entries Base period years Calendar Distributdon ratio Adjusted qualifying distributions Net value of noncha) stable-use assets year (or tax year beginning in) (col (b) divided by col (c)) 2016 28,392,286 518,675,608 0 054740 2015 17,947,516 278,535,286 0 064435 2014 12,293,995 227,339,124 0 054078 2013 8,500,626 185,110,543 0 045922 2012 9,511,150 161,875,789 0 058756 2 Total of line 1, column (d) .