working with people,
a n n u a l r e p o r t 2 0 0 4
the Ieee is the leading organization for the advancement of technology.
our global association consists of members who are engineers,
scientists and allied professionals, and their technical interests are
rooted in the electrical and computer sciences, and in engineering
and related disciplines.
the Ieee’s two predecessor societies –the american Institute of
electrical engineers and the Institute of radio engineers–were founded
in 1884 and 1912, respectively. the two organizations united in 1963 to
form the Ieee.
at year-end 2004, the 38 Ieee Societies and four Ieee technical
Councils provided an unmatched ability to embrace the breadth and
depth of existing technologies and to represent emerging and
converging areas of interest. also at year’s end, the cohesive Ieee
geographic organization encompassed 307 Sections, 1,446 Chapters,
1,333 Student Branches, and 345 Student Branch Chapters. together,
they facilitate local communications and activities among more than
365,000 members in about 150 countries.
table of contents
who we are 01 message from the president and the executive director 03 serving society 04
serving members 10 products and services 13 membership development 19 operations 20
awards, fellows and honors 21 2004 board of directors and management council 23
message from the treasurer 24 report of independent auditors 24 ﬁnancial statements 25
who we are
Society Memberships Financial Information 2000–2004
IEEE Aerospace and Electronic Systems Society 5,064 (US$000) 2000 2001 2002 2003 2004
IEEE Antennas and Propagation Society 8,050
IEEE Broadcast Technology Society 1,973 Total Assets $ 285,587 $ 285,867 $ 253,376 $ 254,871 $ 284,057
IEEE Circuits and Systems Society 12,119 Revenue 190,791 199,331 199,805 250,178 276,993
IEEE Communications Society 46,952 Net Assets 121,676 92,350 91,011 116,602 138,588
IEEE Components, Packaging, and Manufacturing Technology 3,127
IEEE Computational Intelligence Society 5,482 Membership Status
IEEE Computer Society 92,846
Honorary Members 24
IEEE Consumer Electronics Society 3,161
IEEE Control Systems Society 8,707
Senior Members 27,007
IEEE Dielectrics and Electrical Insulation Society 1,987
IEEE Education Society 3,071
IEEE Electromagnetic Compatibility Society 4,251
IEEE Electron Devices Society 11,494 Total Membership 365,483
IEEE Engineering in Medicine and Biology Society 7,848
IEEE Engineering Management Society 6,359 Members in Global Workforce
IEEE Geoscience and Remote Sensing Society 2,909
IEEE Industrial Electronics Society 3,676
IEEE Industry Applications Society 9,864
IEEE Information Theory Society 3,918
IEEE Instrumentation and Measurement Society 4,341
IEEE Lasers and Electro-Optics Society 8,024
IEEE Magnetics Society 2,817
IEEE Microwave Theory and Techniques Society 12,027
IEEE Nuclear and Plasma Sciences Society 2,866 ages of Members
IEEE Oceanic Engineering Society 1,588
IEEE Power Electronics Society 5,608 Under 30 25.7%
IEEE Power Engineering Society 21,364 30-39 20.3%
IEEE Product Safety Engineering Society (New) 472
IEEE Professional Communication Society 1,330
IEEE Reliability Society 2,038
70 and over 6.3%
IEEE Robotics and Automation Society 6,093
IEEE Signal Processing Society 15,715
IEEE Society on Social Implications of Technology 1,964
IEEE Solid-State Circuits Society 12,361 Female 8.8%
IEEE Systems, Man, and Cybernetics Society 3,890 Male 91.2%
IEEE Ultrasonics, Ferroelectrics, and Frequency Control Society 2,199
IEEE Vehicular Technology Society 4,345 Geographic Distribution
United States 60.5%
Note: About 36 percent of IEEE members belong to at least one Society; while 20 percent belong to India/China/Paciﬁc Rim 17.4%
two or more. Europe/Middle East/Africa 14.6%
Sources: Members in Global Workforce data from 2004 Member Satisfaction Survey; age and Latin America 3.3%
gender data are from IEEE Membership. All other membership data are from the Annual Statistics Note: Percentages total
of the IEEE – 2004. 99.9 percent due to rounding.
january FeBruary MarCh
Ieee Xplore® online content totals one Ieee is lead society for ﬁrst Ieee life Fellow leo Beranek receives
million documents international engineers Week u.S. national Medal of Science
arthur W. Winston takes oªce as 2004 alan Kay, Butler lampson, robert Ieee strengthens global standards
Ieee president taylor and Charles thacker receive presence with Itu radiocommunica-
nae’s Charles Stark Draper prize tions sector membership
Ieee life Fellow Frank S. Barnes Ieee Distributed Systems becomes
receives nae’s Bernard M. Ieee’s ﬁrst free online-only publication
Message from the President and the Executive Director
In 2004, the Ieee again demonstrated that we are an million. on 31 December, our 10-year plan to build Ieee
organization of people connecting with each other and reserves to 50 percent of our operating budget was achieved
working together to advance the practice of engineering in just three years. the increased emphasis on strategic
and the application of technology for the beneﬁt of planning begun in 2004 will help to continue building and
people everywhere. optimizing all areas of our operations.
our accomplishments spanned many areas, but shared throughout Ieee operations, our dedicated volunteers
one essential principle: the Ieee’s mission to facilitate the and staff again teamed to deliver outstanding results. We
global exchange of information and ideas. introduced or enhanced a variety of new products and
Because we serve a worldwide membership and we services, reflecting our goal of providing members and
believe in free, open scholarly exchange, one of our notable other people with easy access to useful Ieee information.
achievements during 2004 was our successful negotiations the Ieee enterprise online library, launched in 2004, has
with the u.S. treasury Department’s oªce of Foreign assets been received enthusiastically by the medium and smaller
Control (oFaC). after more than two years of working businesses to which it is geared. Ieee enterprise provides
with key oFaC oªcials, in april we obtained a ruling that instant desktop access to articles and papers from Ieee
exempted the Ieee’s peer review and editing processes from publications, with three different access levels and prices
oFaC regulations, thus ensuring that authors anywhere based on the business’s information needs. In addition,
could publish their research in our journals. this ruling the Ieee Member Digital library, which lets individual
enabled the Ieee to focus its resources on assessing members purchase a reasonably priced package of articles
unresolved membership issues. In october, we restored each month, enjoyed additional acceptance and growth.
electronic communications for members in countries under these products contributed to the use of Ieee Xplore®,
u.S. trade embargoes. Finally, in December, pressure from our online delivery platform, which grew another 18
the Ieee and other groups resulted in oFaC issuing general percent last year, with an average 4.3 million full-text pDF
licenses that freed up co-authorship and collaboration with documents downloaded each month.
authors in the oFaC-embargoed countries. a metric we established in 2003, which established the
Globalization, and the fact that technological progress strong link between Ieee technical literature and company
has no national boundaries, was further highlighted at our patents, again demonstrated persuasive results. according
2004 Ieee honors Ceremony. We presented the Ieee to Ieee-commissioned research, Ieee-published technical
Medal of honor to tadahiro Sekimoto, former chairman articles were cited in 39 percent of all patent citations in
of neC Corporation. We also honored 19 other notable 2003 in our ﬁelds of interest–more than three times that of
engineers and scientists and two corporations–together, other publishers.
a microcosm of our global organization. Ieee conferences also set a new record in 2004, with
the importance of thinking strategically and of thousands of members and other technical professionals
considering the multitude of continuing changes in how attending and networking at 335 events sponsored either
engineers think, communicate and work, received fresh, new entirely or in part by the Ieee.
emphasis. our Board of Directors increased its focus on this our growth in online services is reflected in more than
critical skill, which will help shape the future of the Ieee. 90 Ieee communities at year’s end. they are encouraging
Despite continued world tensions and sluggish global thousands of members to network asynchronously on a
economy, the Ieee’s international family grew in 2004. variety of technical, career development and related topics.
at year’s end, Ieee membership had increased 1.2 percent, Because our members and our interests are worldwide,
to 365,483. Student membership, which had declined the Ieee is committed to enabling people to connect with
in 2003 after a substantial dues increase, not only each other for the beneﬁt of global society. We will continue
rebounded, but also was the reason for much of the to build upon that tradition.
overall membership growth.
In the third year of our current ﬁnancial model, Ieee
operations ended 2004 favorable to budget by uS$11.4
million. Moreover, despite ongoing diªculties in the global Daniel J. Senese Arthur W. Winston
investment markets, net investment gains were uS$13.2 IEEE Executive Director 2004 IEEE President
Since the 18th century, when Dutch windmills helped to thanks to Ieee Member oyewole
launch the Industrial revolution, the netherlands has relied Funso-adebayo –and some help
on the wind to help provide energy. today, the rotterdam from the Ieee Foundation, the
harbor has several wind farms, or clusters of wind turbines. Ieee and hewlett-packard
like their predecessors, these turbines generate electricity Foundation –students at the
with great energy eªciency and without emitting greenhouse university of Ibadan now have a
gases. Courtesy of Siemens. 60-seat computer center.
From a Chance Meeting, a Computer Center West african nation of 137 million people. the nigerian
For Nigerian Engineering Students government is watching the project as a possible model for
training a better-educated national population of engineers.
helping others often begins in small, unexpected ways. hewlett-packard (hp) donated the computers,
In mid-2003, while Ieee Spectrum Senior associate editor peripherals and a diesel-power generator for the 60-seat
harry Goldstein was on assignment in nigeria, Ieee center, as well as the cost for the ﬁrst year of Internet
member oyewole Funso-adebayo asked him for help with access. the Ieee Foundation is funding two more years of
obtaining a laptop computer for a student. Goldstein Internet access and half of the center coordinator’s salary
learned that students at nigerian state universities typically for two years. In addition, Ieee Spectrum is paying the
do not have access to computers or the Internet to look up other half of the coordinator’s salary for this period, and
technical material, and those students who can afford it use the Ieee donated a three-year subscription to the Ieee/Iee
computers at commercial Internet cafés. electronic library (see page 14) of more than 1.1 million
Back home, Goldstein realized that while one laptop Ieee technical articles.
might be useful, a computer center for Funso-adebayo’s “We try to make sure our investments will foster an
alma mater, the university of Ibadan, would beneﬁt the activity the community can sustain,” said Gilles lambinet,
entire student body. he applied for and received grants of hp’s philanthropy Board for the Middle east and africa.
from the hewlett-packard Foundation and the Ieee “With the Ieee as a committed partner, we can achieve that
Foundation totaling more than uS$150,000 to create a goal of sustainability.”
state-of-the-art facility. It began operating in mid-2005
and is the only one of its kind at a state university in this
engineers Week Chair joe lillie of the In Dubai, united arab emirates, at a united nations brieﬁng on
Ieee (center) and honorary Chair alan hanan Ishaq (left) of Ieee Women in introducing more girls to engineering,
Boeckmann (rear) of Fluor Corporation engineering shows two young, panelists included (from right) Sylvia
celebrate with the winning team in the potential engineers the intricacies of thomas of the Ieee, Cream Wright of the
eWeek Future City Competition, from some problem-solving games. united nations Children’s Fund, and
riverview junior/Senior high School in paul hoeffel of the united nations.
oakmont, pennsylvania, uSa.
Helping to Lead Global Student teams from the u.S.–and for the ﬁrst time, japan
Engineering Recognition and egypt–participated in the Future Cities Competition, in
which 12- and 13-year-olds used real-world engineering skills
how can the global engineering profession increase to present their vision of a city of the future. In addition,
public awareness of engineering and engineers’ almost 8,500 area youngsters and their parents attended
contributions to society, as well as encourage diversity in the ZooM into engineering Family Festival at Washington’s
the engineering workforce? the ﬁrst international engineers national Building Museum.
Week (eWeek) worked to do just that in helping to extend the eWeek message globally, Ieee
February 2004, with the Ieee serving as lead society for Women in engineering led “Introduce a Girl to engineering
the precedent-setting celebration. Day” activities in India, egypt, the united arab emirates,
together with corporate sponsor Fluor Corporation, Colombia and Canada, as well as in the u.S.
Ieee-uSa–the Ieee organizational unit that serves the as a result of its efforts, Ieee-uSa received several
career and public policy interests of u.S. members– communications industry awards, including ﬁrst prize in the
coordinated, along with the eWeek Committee, an array of special event and observance category of the International
outreach programs and activities. they included a united public relations association Golden World awards.
nations brieﬁng on how to interest more girls to technology
careers, advertisements in uSa today and the International
herald tribune, and record-breaking participation in the
annual Future City Competition and other eWeek events in
(left) From left, Sony electronics executives jean Baronas, IEEE-SA Corporate Program Builds Momentum,
ed Barrett and james Williamson celebrate their organization
Global Program Reaches Milestone
receiving the Ieee Standards association Corporate award for
2004. Williamson is vice president of Sony electronics’ the Ieee Standards association (Ieee-Sa) Corporate
technology Standards oªce. program, which gives companies a direct voice in the
Ieee standards development process, made considerable
(right) 2004 Ieee-Sa leaders Donald heirman and james Carlo progress in 2004. Six corporate standards projects were
(left and right) congratulate Chuck adams of IBM on receiving approved, initiating work on standards covering electronic
the Ieee-Sa International award. adams was honored for his design automation, rechargeable batteries for cell phones,
contributions, including serving as chair of the Ieee-Sa Corporate and memory transport protocol to support both data
advisory Group. growth and data security requirements in the changing
microprocessor environment. In addition, the Ieee
livium™ standard for rechargeable batteries for mobile
computers was published in less than 18 months from
start to ﬁnish.
the Corporate program gained extra momentum from
the addition of six members of the Ieee-Sa Corporate
advisory Group (CaG), which decides the strategy, mission
and direction of the corporate program. CaG members
now include IBM, hewlett-packard, Intel, Motorola, Sony,
Siemens, panasonic, Mentor Graphics, nortel and lucent
technologies. at year’s end, the Corporate program
included 67 corporate members.
the ﬁrst IeC/Ieee International Standard, relating to
instrument buses, was published under a joint agreement
with the International electrotechnical Commission. this
new standard demonstrates how the public can beneﬁt
from a balanced approach to international standardization
that uses existing, market-relevant technical standards.
In addition, the International telecommunication
union (Itu) approved membership for the Ieee in its
radiocommunications sector. this enables the Ieee to
contribute directly to standards and other documents
developed by the Itu sector, while broadening the Ieee’s
presence as a provider of standards for international use.
Global IEEE Workshops
Promote University Accreditation
If university-level technical education is to produce
qualiﬁed graduates, then academic leaders everywhere
must pay more attention to accrediting their engineering
and science programs. the Ieee has consistently promoted
this message in accreditation workshops held around the
world since 1992.
at a workshop in november 2004 in Bangkok, the
Ieee brought together more than 50 academic, corporate
and government leaders from Southeast asian and
paciﬁc rim nations. attendees included representatives
from Chulalongkorn university in Bangkok, as well as
from tokyo Institute of technology in japan and Griªth (top) a classical thai dancer performs at
university in australia. an event during the workshop in Bangkok.
the Bangkok workshop, which was the ﬁrst of its kind
presented by the Ieee in this region, included presentations (Bottom) Ieee Senior Member akinori
about accreditation processes currently used around the nishihara, of the tokyo Institute of
world. In addition, speakers from different asia and paciﬁc technology, makes a point during the
countries discussed their extremely diverse geographic international accreditation workshop, the
region, which has education and accreditation systems that ﬁrst of its kind presented by the Ieee in
vary greatly between nations. this region.
the goals of the international accreditation workshops
are to educate the Ieee’s regional groups on the academic (Background) With its single, inverted-y
program criteria required for accreditation and to tower soaring 160 meters over Bangkok’s
encourage Ieee members to either get involved in their Chao phraya river, the asymmetrical, cable-
country’s establishment of an accreditation process or help stayed rama VIII Bridge is a dramatic part
to improve an existing process. It is estimated that half the of the skyline. an observation tower at the
top of the tower was designed to resemble
engineering schools in more than 75 countries with Ieee
a closed lotus flower.
members lack any accreditation process at all.
a workshop in latin america is planned for late 2005.
previous accreditation workshops have been held in
Bangalore, Buenos aires, San Salvador, Bratislava and
helsinki. they have greatly influenced current engineering
accreditation systems in peru, Mexico, Germany and austria.
last year, these eight new Milestones joined some 50
alternating Current electriﬁcation, Great Barrington,
Massachusetts, uSa. In 1886, William Stanley
demonstrated the ﬁrst practical system for providing
electrical illumination to oªces and stores on the
city’s Main Street.
DeCew Falls hydro-electric Development, hamilton,
ontario, Canada. a pioneering project in 1898,
DeCew Falls generated and transmitted electrical
energy at higher voltages and greater distances
than previously possible.
electrical Breeder reactor 1, Idaho Falls, Idaho, uSa.
In 1951, electricity was ﬁrst generated from the heat
(left) one of the foremost electrical engineers of his day, Moses produced by a sustained nuclear reaction providing
Farmer (1820-1893) helped to develop the Boston electric ﬁre steam to a turbine generator, ultimately launching the
alarm system. Dedicated in 1852, it was the ﬁrst municipal u.S. nuclear power industry.
system to use call boxes on the street. electric Fire alarm System, Boston. the ﬁrst municipal
electric ﬁre alarm system using call boxes to indicate
(right) the Fleming Valve is one of the most important historical
the location of a ﬁre began operating in 1852.
contributions to electronics. In 1904 in london, john ambrose
electronic Quartz Wristwatch, tokyo. after 10 years
Fleming used it to rectify high-frequency oscillations and thus
of research and development at a Seiko facility, the
detect wireless signals.
ﬁrst commercially available timepiece of its kind was
introduced in 1969.
IEEE Milestones Honor Fleming Valve, london. Developed in 1904 by john
Eight Historical Achievements ambrose Fleming at university College, london,
the device was a precursor to a new tube and to
Ieee members, eager to honor the signiﬁcant technological
applications that laid the foundation for electronics.
contributions that occurred in their respective geographic
lempel-Ziv Data Compression algorithm, haifa. the
or technical areas, last year enabled a record eight
data compression algorithm developed in 1977 by
new achievements to take their place among the Ieee
abraham lempel and jacob Ziv at the Israel Institute of
Milestones in electrical engineering and Computing.
technology enabled rapid, eªcient data transmission,
For more than 20 years, the Ieee Milestones program
which contributed to making the Internet a global
has recognized great achievements in electrical engineering
history, all of them proposed by members, Ieee Sections,
power System for rapid transit, Boston. Introduced
Societies and other organizational units, to the Ieee history
in 1889, the ﬁrst large-scale rapid transit system to
Committee. the Committee then evaluates the applications
use electric traction overcame major safety, reliability
and forwards its recommendations to the Ieee executive
and economic challenges, providing a model for other
Committee for approval.
cities’ mass transit systems.
aprIl M ay june
Four Ieee societies host international First IeC/Ieee International tadahiro Sekimoto receives
conference on the hydrogen economy Standard for instrument buses Ieee Medal of honor
Ieee publishes livium™ standard for Ieee enterprise online library is
mobile computer rechargeable batteries elena leah Glassman receives introduced for small businesses
Ieee presidents’ Scholarship
DeCew Falls hydro-electric Development Ieee Virtual Museum launches new
in Canada named Ieee Milestone exhibit on microelectronics
(left) elena leah Glassman, left, accepts the uS$10,000 Ieee presidents’
Scholarship from 2004 Ieee president-elect W. Cleon anderson.
(right) Bartosz nyczkowski was one of the team members from poznan
university of technology to win ﬁrst place in the 2004 Ieee Computer
Society International Design Competition.
Keystroke Software for Disabled Wins a radio frequency transceiver. users can send and receive
IEEE Presidents’ Scholarship digital signals through other local ICus and a command
center. the lifetch system combines enhanced GpS
Developing a computer program that enables people with technology with algorithms that accurately calculate a user’s
muscle diseases to use a computer helped elena leah position. Digital position messages and data from other
Glassman of Doylestown, pennsylvania, uSa, to win the sensors are sent periodically, eliminating the need for the
uS$10,000 Ieee presidents’ Scholarship. Glassman, who person, who may be injured, to call.
was 17 years old at the time, received the award at the 2004 a team from the politechnica university of Bucharest in
Intel International Science and engineering Fair (ISeF) in romania received second place and uS$10,000 for devising
portland, oregon, uSa. the eXpress! help system, an inexpensive mobile phone
people unable to manipulate a computer keyboard or add-on that can help the elderly, disabled and children get
mouse usually must use computer-assisted communications help faster by pinpointing their location. third place and
programs such as voice recognition. But Glassman uS$6,000 went to students from Iowa State university,
understood the diªculty when paralysis or a degenerative ames, uSa, for their Spatial Cue system, created to aid
disease such as amyotrophic lateral sclerosis–also called large-scale search and rescue operations.
lou Gehrig’s Disease –affects the person’s ability to speak. Microsoft Corporation provided most of the ﬁnancial
her software senses the signals, or wavelets, generated support for the competition, with additional funding from
in the brain when the user merely thinks about doing a the Ieee Foundation and the aBB Group.
task. the software then processes the signals and issues a
typing command to a keyboard interface –with more than
IEEE Virtual Museum Marks 2004
70 percent accuracy. Glassman is now studying electrical
engineering and computer science at the Massachusetts With New Exhibit, Awards
Institute of technology in Cambridge. a new exhibit that examines the world of microelectronics
the Ieee Foundation sponsors the annual presidents’ and how its innovations have profoundly affected the last
Scholarship, which is the largest presented in the Special 40 years of world history marked the third year of the Ieee
awards category at ISeF. Virtual Museum. launched in 2001 to introduce youngsters
ages 10 to 18 and their parents and teachers to the
Polish Students Win Computer Society technologies that engineers have created, the Museum relies
Competition with Wearable on expert historians and technologists–many of them Ieee
members–to develop the material for museum exhibits.
Communications Device “let’s Get Small: the Shrinking World of Microelectronics”
a team of students from poznan university of technology traces the history of the subject from early radios, television
in poland won ﬁrst place and uS$15,000 in the 2004 sets and room-size computers through the development
Ieee Computer Society International Design Competition of transistors, integrated chips and nanotechnology,
(CSIDC). the students’ entry, lifetch, is a lightweight, and encourages visitors to learn about people, historical
portable unit designed to help hikers and other outdoors events and technologies that offer historical context
enthusiasts obtain emergency help, particularly in areas and signiﬁcance.
beyond the reach of cellular communications. also last year, Scientiﬁc american honored the Ieee
this was the ﬁfth year of the CSIDC, which encourages Virtual Museum as one of 50 recipients of its 2004 Science
undergraduate engineering students to take on real-world and technology Web awards, describing it as “a beautifully
projects that are both useful and marketable. the 2004 designed Web site featuring a cornucopia of exhibits.”
theme, “Making the World a Safer place,” generated nearly harvard Business School’s Working Knowledge praised the
250 entries from 144 universities in 28 countries. Virtual Museum, noting “We’re suckers for good museums
the wearable Intelligent Communications unit (ICu) about technology… this collection focusing on technology
includes a Global positioning System (GpS) receiver and developments around electricity is fun and informative.”
(left) at the 2004 Ieee region 10 Student Congress
in hong Kong, attendees gather between formal
sessions to exchange ideas and information. More
than 90 student leaders attended from Southeast
asian and paciﬁc rim nations.
(right) the lincoln Memorial in Washington, D.C. is a
ﬁtting background for Ieee-uSa 2003-04 engineering
and Diplomacy Fellows. From left, they are: emily
Sopensky, richard lamb, Donald Silversmith, Sajjad
Durrani, and Congressional Fellow joseph Czika, jr.
not pictured: 2004 Congressional Fellows Martin
Sokoloski, Steve Watkins and peter Winokur.
IEEE Resumes Publishing Processes, contact information. Individuals in embargoed countries
Electronic Member Communications who may have let their memberships lapse can reinstate
them using the Ieee Web site, and prospective members
After OFAC Negotiations also can now join the Ieee online.
after more than two years of working with the u.S. treasury
Department’s oªce of Foreign assets Control (oFaC), the IEEE-USA Supports Key Technology,
Ieee in 2004 resolved key issues concerning journals and
authors in the u.S.-embargoed countries including Cuba,
Iran and Sudan. Ieee-uSa, the Ieee unit that represents the public policy
the Ieee hosted a February meeting in Washington, and career interests of u.S. members as well as all u.S.
D.C. where oFaC oªcials discussed scholarly publishing engineers, carried out a range of communications and
with more than 30 not-for-proﬁt and commercial scholarly career services programs in 2004.
publishers. In april, oFaC ruled that the Ieee’s peer review Continuing to combat unemployment among u.S.
and copy editing processes come within the “information members, Ieee-uSa encouraged key u.S. Congressional
and informational materials” exemption under the oFaC committees to support hiring more u.S. citizens, and
regulations for Cuba, Iran and Sudan–thus resolving supported u.S. government funding of a study on how
Ieee publication issues and setting a model for the entire offshore outsourcing affects unemployment. the unit’s
scholarly publishing community. pressure from the Ieee annual salary survey, its most extensive yet, will help
and other groups resulted in oFaC issuing, in December, to enable launching a new salary service in 2005 as a
general licenses that removed the ﬁnal lingering concerns compensation planning tool for human resources and
about co-authorship with individuals in oFaC-embargoed engineering managers.
countries, and also about scholarly collaboration, a With the Consumer electronics association and
membership issue that transcends publication authorship netCaucus, Ieee-uSa successfully opposed an excessively
and could be seen to inhibit a broad range of activities broad bill to protect copyrighted works and technology with
normally associated with participating as a member of a signiﬁcant “non-infringing” uses.
professional society. Ieee-uSa ensured its members’ voices were heard
In october, the Ieee re-established electronic in Washington, D.C. at more than 150 formal meetings
subscriptions for members in Cuba, Iran and Sudan under with u.S. Congressional members and their staffs. In
the information and informational materials exemption. addition, the unit sponsored or cosponsored four major
Individuals in these countries again have online access to events in 2004 to highlight speciﬁc technology policy
their Ieee publications subscriptions and can electronically issues, including: globalization and its effects on offshore
change subscriptions, renew memberships and change outsourcing; how technology can address the healthcare
needs of the aging population; the ethical, market and agents for different skills and career goals, and a geographic
regulatory issues surrounding deregulated energy markets; radius search that locates all jobs within a particular area.
and how blackouts occur.
More Members Networking in
myIEEE Offers Members Online Communities
Personalized Information at year’s end, more than 12,000 Ieee members in 90
how can Ieee members get user-friendly, online separate online collaborative sites were interacting and
information tailored to their individual needs? and, where exchanging knowledge without concern for time zones and
can professionals interested in Ieee membership obtain a work schedules. Introduced in 2003 as a new collaborative
clear overview of the beneﬁts of belonging? In both cases, tool, the number of online communities grew by 15 percent
the myIeee membership portal is designed to do just that. last year. they cover a wide range of technical topics
launched in january 2005, the portal includes both including power and energy, embedded systems, and
a public site and a members-only area where members ethernet passive optical networks.
can view both their active memberships and a list of In addition to the many communities devoted to
relevant upcoming conferences. after the member has technical topics, others provide a means for members to
completed a technical interest proﬁle, a “Service advisor” discuss employment and professional development. the
tool recommends Ieee memberships and publications employment and Career Strategies Community, which
personalized to the proﬁle. also myIeee enables members is hosted by Ieee-uSa (see page 10), has over 1,800
to easily renew, add services and change their proﬁle from participants and is the largest and most active online
one location. It also permits browsing the current headlines community. In addition, at year-end 2004, about a dozen
from Ieee Spectrum, the Institute and StandardsWire. sites were helping members of various Ieee regions and
the publicly accessible area of the site provides news and societies to network and discuss common concerns, and
information about speciﬁc aspects of different membership four Spanish-language communities were serving
beneﬁts and includes links to other important Ieee areas, members in latin america.
including Ieee societies, Standards, the history Center
and ShopIeee. 294 Million E-mail Messages –
All Scanned for Viruses
IEEE Job Site Makes Impact
a record 294 million e-mail messages passed through the
On Online Job Market Ieee e-mail system in 2004–nearly 70 percent more than the
By emphasizing only opportunities for high-quality previous year. Moreover, the e-mail alias service stopped more
electrical engineering jobs, in 2004 the Ieee job Site than 9.5 million viruses from being delivered to Ieee members,
managed to capture signiﬁcant attention in the highly more than ﬁve times the infected messages stopped in 2003.
competitive online job market. With about 100,000 members using this service, it is blocking
at the end of its third full operating year, 32,000 Ieee approximately 10 attacks a month per user.
members had registered proﬁles on the site so they can the Ieee personal e-mail alias is a free beneﬁt of Ieee
automatically search through the hundreds of positions membership. the service provides an @ieee.org e-mail address,
available each month from over 1,000 employers posting and scans all incoming mail for viruses before forwarding
them. anyone who visits the Ieee job Site can view job messages to each member’s actual internet account.
postings, but only Ieee members can submit and maintain a special ﬁltering feature added in 2004 lets members
proﬁles and set up search criteria that will alert them of manage the unsolicited commercial e-mail (uCe) or spam
new positions matching their speciﬁcations. sent to their individual Ieee aliases. after the user selects
the fully automated employer posting process now his or her desired level of e-mail scanning, the feature
enables new positions to appear almost immediately at any then tags or blocks any messages considered to be uCe,
time of day and the system automatically notiﬁes registered depending on the user’s selections. tagged mail can be
members whose proﬁles match the position if they have set easily identiﬁed, permitting the recipient to delete or read
up a job search agent. other improved beneﬁts for members it. at year’s end, more than 15,000 members were using
using the site include improved navigation, an easier process this service, which in 2004 alone identiﬁed 30.4 million
for uploading resumes and proﬁles, multiple job-search messages as potential spam.
j u ly auGuSt SepteMBer
poznan university of technology team ISI journal Citation report again Ieee Fellow teck Seng low receives
wins Ieee Computer Society Student ranks Ieee journals highly, with Ieee Singapore’s national Science and
Design Competition publishing 18 of the top 20 journals technology Medal
in their ﬁelds
Fleming Valve dedicated in london as Ieee publishes black-box standard
Ieee Milestone for motor vehicles
new spam ﬁltering feature introduced
for members with Ieee personal
(left) the IBM poWer microprocessor is
at the core of everything from game consoles
to powerful supercomputers. Courtesy of
International Business Machines Corporation.
unauthorized use not permitted.
(Center) physicians can examine three-
dimensional images in real time for more
extensive, accurate and precise diagnoses
in abdominal, vascular and obstetrics
imaging. Courtesy of Siemens.
(right) During 2004 engineers Week,
a student works on his entry for a
Products and Services
Two Studies Reaªrm Value of IEEE Journals IEEE Xplore® Enhancements
In 2004, two separate studies continued to conﬁrm the Contribute to Record Usage
value of Ieee technical journals to engineers and scientists. ongoing improvements that make new content available
Because patent citation has become a strong indicator quickly and conveniently have enabled Ieee Xplore®,
of journal usefulness, the Ieee again commissioned an the online delivery platform for all Ieee intellectual
analysis of how often patents issued by the u.S. patent property, to reach new levels of usability and content.
oªce cite scientiﬁc literature –especially Ieee-published By year’s end, users had downloaded a record of more
content. ChI research, Inc., which conducted the than 52 million full-text pDF documents, which is 18
study for the Ieee, reported that in 2003, Ieee journal percent more than in 2003. In early 2004, the one-
titles accounted for 38 percent of all citations from the millionth document in Ieee Xplore® went online, and
patent holdings of the top 25 patenting companies by 31 December the database comprised approximately
and universities. this was more than three times the 1.1 million documents.
second most highly cited publisher. three separate enhancements to the Ieee Xplore®
the patent citation metric has joined another platform provided users with improved research tools.
established tool for measuring the value of Ieee In april 2004, Version 1.7 introduced a pilot of full-text
journals –the Institute of Scientiﬁc Information’s (ISI)
annual journal Citation report, which ranks the impact
of journals according to how frequently their content is
quoted or cited by other scientiﬁc publications in their
initial year of publication. according to the ISI’s 2003 study
released in late 2004, the Ieee publishes the top 18 of
the leading 20 journals in electrical engineering and the
top ﬁve in telecommunications. For the sixth consecutive
year, proceedings of the Ieee was the only electrical and
electronics engineering journal in the top ten. proceedings’
“cited half-life,” a gauge of a journal’s value over time, was
rated as more than 10 years.
Shanghai’s new trans-rapid railway offers a fast way to connect the ﬁnancial district of the metropolis with its new pudong International
airport 31.5 kilometers away. Introduced in mid-2004, the trains are expected to carry 10 million passengers a year in 2005 and about
26 million passengers by 2020. Courtesy of Siemens.
searches of all Ieee Xplore® documents, and in june, companies–automotive, power, chip manufacturing and
Version 1.8 launched Ieee enterprise, an alternative pharmaceuticals, among others.
product for small businesses. (See below.) In october, the Ieee Member Digital library was introduced in 2003
Version 1.9 introduced a new Crossref search function, as a members-only beneﬁt and provides access to
which hunts through 27 other publishers’ sites in 25 articles a month for the flat fee of uS$35 a month.
partnership with the Google search engine without the full array of Ieee online content is available
requiring the user to leave Ieee Xplore®. through Iel, which is used by large companies, as well as
also in 2004, development proceeded for the March governments and universities around the world. among
2005 release of Ieee Xplore® 2.0. the newly designed the new university consortia organized by the Ieee during
and architected document delivery system provides a 2004 are Spain, portugal and argentina. Students at the 99
foundation for future customization and personalization. universities in these three consortia have joined students at
other new features include multiple new search functions, more than 500 other universities in europe and hundreds
an improved single-article purchase process, and journal more in the paciﬁc rim and India in their ability to retrieve
home pages with full information on a title’s scope the more than 1.1 million documents in Iel.
and editorial contacts, sponsoring Ieee societies and
manuscript submissions. New Journals Emphasize
From Businesses of All Sizes to Individuals:
automation, bioinformatics, secure computing, and
Online Information Delivery for Everyone geoscience and remote sensing are addressed in four
With Ieee enterprise, the online collection of Ieee journals quarterly, peer-reviewed publications introduced in 2004:
and conference proceedings for small- and medium-sized IEEE Transactions on Automation Science and Engineering,
businesses, the Ieee now offers a range of cost-eªcient IEEE/ACM Transactions on Computational Biology and
solutions to meet almost any organization’s technical Bioinformatics, IEEE Transactions on Dependable and Secure
information needs. Computing, and IEEE Geoscience and Remote Sensing Letters.
Introduced in 2004, Ieee enterprise was designed to IEEE Transactions on Automation Science and Engineering
ﬁll the gap between the Ieee/Iee electronic library (Iel) covers new research on scientiﬁc methods and technologies
for large institutions and the Ieee Member Digital library that improve automation in all areas, such as pharmaceutical
for individual members. Ieee enterprise is a subscription testing and intelligent systems for health delivery, as well
service that permits downloads of fewer articles, at as manufacturing. Its sister publication is IEEE Transactions
lower prices, than larger collections. Ieee enterprise is on Robotics; both are published by the Ieee robotics and
available at three different price levels depending on the automation Society.
number of documents required. Since its launch, Ieee IEEE/ACM Transactions on Computational Biology and
enterprise has been well received by a wide variety of Bioinformatics publishes new research related to methods,
programs and databases that are central to bioinformatics
and computational biology. It is published by the Ieee
Computer Society, the association for Computing
Machinery, Ieee Computational Intelligence Society and
Ieee engineering in Medicine and Biology Society. the
co-sponsor is the Ieee Control Systems Society. Software accounts for a large share of the value
IEEE Transactions on Dependable and Secure Computing creation for new products –whether for cars, power
addresses research on systems and networks that are plants or cell phones. Courtesy of Siemens.
dependable and secure to the desired degree without
compromising performance. It is published by the Ieee
IEEE Transactions on Geoscience and Remote
Sensing covers science and engineering concepts and
techniques for sensing the earth, oceans, atmosphere
and space. the publisher is the Ieee Geoscience and
remote Sensing Society.
the Ieee’s ﬁrst online-only publication also was
introduced. IEEE Distributed Systems Online, which is
peer reviewed, is published monthly by the Ieee
also last year, two new periodicals were developed for
publication beginning in 2005: IEEE Journal of Display
Technology and IEEE Transactions on Industrial Informatics.
Four new tools designed to make authors’ work easier
were introduced; they include an electronic copyright form
and a graphics checker to validate electronic illustrations.
Most of the 123 Ieee journals and magazines are now
produced using Manuscript Central™, a Web-based system
tailored to Ieee needs that makes it easier for authors to
submit articles for consideration and for their colleagues
to participate in peer review of these articles.
IEEE Spectrum marked its 40th anniversary year with a complete
graphic design makeover. the award-winning publication also
added to its accolades with design and writing awards.
IEEE Spectrum Marks 40th Year Society (eDS), celebrated its 50th anniversary year
With New Design, Awards in San Francisco. More than 2,000 professionals
interested in microelectronics, molecular electronics,
While turning 40 can create a midlife crisis for some, IEEE optoelectronics and microelectromechanical system
Spectrum celebrated the start of its 40th year of publication technology attended. Speakers included richard e.
in 2004 with a complete design makeover and nine new Smalley, who discussed the need for a clean and
awards. the graphic redesign was introduced as part of sustainable major new energy source within the next
ongoing efforts to make Spectrum easy to navigate and few decades. Smalley received the 1996 nobel prize
more interesting to read. the IEEE Spectrum Web site also in chemistry for his discovery of carbon buckyballs.
received a design makeover. to help celebrate the 50th anniversary of IeDM,
one aspect of Spectrum that has not changed is its long each attendee received a DVD containing the IeDM
tradition of important industry recognition for design technical Digest Collection, which included conference
and writing. among the u.S.-based awards presented digests from 1955 through 2004.
to the Ieee’s flagship publication during 2004 were two
gold awards for writing –one from the Society of national the Ieee’s largest meeting, the optical Fiber
association publications and the other from the trade Communication Conference (oFC), met in
association and Business publications International, plus los angeles with more than 15,000 people attending.
three apex awards of excellence for magazine redesign, Cosponsors were the Ieee Communications Society,
e-mail newsletters and marketing materials. Ieee lasers and electro-optics Society and the optical
Society of america. Shortly after this meeting, plans
Thousands Attend a Record were announced to combine oFC with the national
335 IEEE Conferences Fiber optic engineers Conference (nFoeC) to create
the most comprehensive conference and trade show
thousands of Ieee members and other technical
exposition of its kind. nFoeC was formerly owned
professionals representing the breadth of Ieee ﬁelds of
and sponsored by telcordia technologies, Inc. the
interest attended a record 335 conferences last year around
ﬁrst event took place in March 2005 in anaheim,
the world where they heard presentations by foremost
experts, exchanged ideas and networked.
these are just a few of the 2004 conferences, all
the 2004 Ieee Consumer Communications and
sponsored entirely or in part by the Ieee:
networking Conference (CCnC) was co-located with
the Consumer electronics association’s International
the 2004 International electron Devices Meeting
Consumer electronics Show in las Vegas, uSa.
(IeDM), sponsored by the Ieee electron Devices
Sponsored by the Ieee Communications Society,
(left) Ieee president-elect W. Cleon anderson (left)
presents Ieee life Fellow tingye li with the Ieee
photonics award at the 2004 Ieee optical Fiber
Communications Conference. retired from at&t
labs, li was honored for his contributions to
optical ﬁber communications and laser science.
(right) William hederman (left) of the u.S. Federal
energy regulatory Commission chats with lester
lave of Carnegie Mellon university during the
“ethics and Changing energy Markets” conference
at the university of notre Dame, notre Dame,
CCnC enabled over 250 researchers, developers and
practitioners to attend both events. jed johnson of
Motorola told the CCnC audience that the “connected
home” is becoming a reality as consumers seek to
leverage the always-on capability of broadband Internet
services with devices both in the home and away.
over 100 people attended a conference in Washington,
D.C. to discuss “the hydrogen economy.” International
experts gave their views on hydrogen production, its
possible delivery infrastructure, and system interface
issues, as well as how hydrogen fuel might affect the
future delivery of electric energy. Four Ieee societies
organized the meeting: the Ieee power engineering
Society, the Ieee power electronics Society, the Ieee
Industry applications Society and the Ieee Society on
Social Implications of technology.
More than 250 people attended the ﬁrst Ieee hydrogen is one of the sustainable energies that engineers and
International Conference on Sensor and ad hoc other technologists are developing as a future alternative to fossil
Communications networks (SeCon) in fuels. In the engines of BMW Cleanenergy hydrogen vehicles, the
Santa Clara, California, uSa. Sponsored by the hydrogen generated from energy and water combusts with
Ieee Communications Society with technical oxygen and returns to water. Courtesy of BMW Group.
sponsorship by its technical Committee on Computer
Communications, the meeting included talks and
panel discussions on topics such as energy mobility,
communications architectures and research funding.
Keynote speaker john Strand, of oak ridge national
laboratory, oak ridge, tennessee, uSa, discussed
lessons and challenges in building a national
oCtoBer noVeMBer DeCeMBer
Ieee Xplore® introduces Crossref search Michael r. lightner elected 2005 Ieee Xplore® database reaches a
function Ieee president-elect record 1.1 million documents
Ieee Foundation and hewlett-packard Ieee Fellow Vijay Bhargava receives 2004 International electron Devices
grants fund computer center for royal Society of Canada’s Meeting in San Francisco marks its
university of Ibadan, nigeria thomas W. eadie Medal 50th anniversary year
Boston electric Fire alarm System and International accreditation workshop Daniel j. Senese retires after
alternating Current electriﬁcation are in Bangkok draws educators from more than nine years as Ieee
dedicated as Ieee Milestones asia and australia executive Director
In a highly visible public building like the Williamj. Clinton Center in little
rock, arkansas, uSa, security matters are paramount. the ﬁre alarm,
evacuation and security monitoring systems for the presidential library of
Bill Clinton, the 42nd president of the united States, reflect state-of-the-art
technology. Courtesy of Siemens.
2004 IEEE Membership Recovers, the way with a 6.7 percent increase, followed by region
With Notable Non-U.S. Growth 8 (europe, the Middle east and africa) with a 6.3 percent
Despite two ongoing impediments to growth –a at year’s end, members from outside the u.S. constituted
sluggish global economy and continuing engineering 39.5 percent of the total organization, up from 37.8 percent
unemployment –Ieee membership rebounded somewhat the previous year.
in 2004 to 365,483. this was a 1.2 percent increase over Ieee society memberships declined again in 2004,
2003, which was the ﬁrst year since 1996 that membership marking the third consecutive year of decreases. of the
had not grown. 38 Ieee societies operating last year, only four recorded
at year’s end, region 10, which comprises asia and the growth. they are the Ieee Geoscience and remote
paciﬁc rim, took the lead as the largest of the 10 Ieee Sensing Society (10.5 percent); Ieee Social Implications
regions with 63,548 members. Within this total, region 10 of technology Society (1.2 percent); Ieee robotics and
also had the largest population of student members, automation Society (.8 percent); and Ieee ultrasonics,
with 18,254. Ferroelectrics and Frequency Control (.8 percent).
last year’s membership increase was encouraging the percentage of female Ieee members again increased
because student membership, which had dropped slightly in 2004. although still underrepresented in the
signiﬁcantly in 2003 after a substantial dues hike, accounted overall membership population, women now comprise
for much of the 2004 overall membership growth. Student 8.8 percent of the total Ieee member roster.
membership grew in all but two of the Ieee’s 10 geographic three new Ieee Sections were formed last year, all in
regions in 2004, for an overall net increase of 7 percent. region 8. the Sections, which enable local communications
Growth of both higher grade Ieee memberships (non- and activities for local members, are in lebanon, Morocco
students, for example) and student memberships was and Qatar.
especially notable outside north america. region 10 led
(left) at the year-end 2004 Ieee Standards
association (Ieee-Sa) meeting, Ieee Fellow
and 2003 Ieee-Sa president Ben johnson
(left) congratulates Daniel Senese on his
retirement after more than nine years as
Ieee executive Director.
(Center) new ultrasound imaging
technology allows physicians to examine
three-dimensional pictures in real time for
better diagnoses. Courtesy of Siemens.
(right) IBM poWer5 is a highly advanced
microprocessor that is the “brain” of
powerful new computer systems. Courtesy of
International Business Machines Corporation.
unauthorized use not permitted.
Daniel Senese Retires accounts grew to more than 489,000–from some 423,000
the previous year. Web accounts enable members and
on 31 December, Daniel j. Senese retired after more than
other subscribers to access Ieee publications online and to
nine years as Ieee executive Director. as chief staff oªcer,
update their membership or customer proﬁle in real time.
he was responsible for the operations of the Ieee and its
at year’s end, about one-third of Ieee members were
employees. throughout his tenure, Senese emphasized
using the Ieee’s e-mail alias service, which includes both
the importance of “doing business electronically,” and he
virus-scanning of all messages passing through Ieee
oversaw the creation of an array of electronic services and
servers and a spam-ﬁltering feature. additional details can
products. these include online tools to enable members
be found in “294 Million e-mail Messages–all Scanned for
to manage their memberships, and a spectrum of other
Viruses” on page 11.
electronic offerings such as an expanding line of electronic
Continuing system improvements enabled a record 69
libraries to meet the needs of smaller companies and
percent of all Ieee members to renew their memberships
individuals, as well as large organizations. he also
online during the 2004 renewal period. this represents
directed the development of the Ieee Data Center, which
193,191 members who renewed between September 2004,
now supports a myriad of electronic services for the Ieee’s
when the renewal period began, and month-end March
2005. In addition, online applications were used by almost
27,293 prospective members–some 56 percent of the
New Records for IEEE Systems, Usage 48,311 individuals who applied for new membership or
last year, tens of thousands of Ieee members and other reinstatement through month-end March 2005.
users seeking to satisfy their information needs helped to also at year’s end, the Ieee Web site included 100,000
set several new records for the organization’s electronic pages and the number of individual visits averaged more
systems. For example, total e-mail traªc increased 70 than 425,000 a month.
percent –from 208 million messages in 2003 to 294 million
in 2004. at the same time, the number of Ieee Web
Awards, Fellows and Honors
tadahiro Sekimoto receives Ieee’s highest honor
2004 Ieee president arthur W. Winston (left) presented the Ieee Medal of honor to tadahiro
Sekimoto of the Institute for International Socio-economic Studies, tokyo, at the annual honors
Ceremony. W. Cleon anderson, 2004 Ieee president-elect, is at the right. also an Ieee life Fellow,
Dr. Sekimoto was honored for his contributions to digital satellite communications, promotion of
information technology research and development, and his technical and corporate leadership in
computers and communications.
In addition to the Medal of honor, president Winston also presented 11 other Medals,
two Service awards, and one leadership and two Corporate Innovation recognitions at the
honors Ceremony in Kansas City, Missouri, uSa.
IEEE Medal of Honor IEEE Richard W. Hamming Medal IEEE Simon Ramo Medal
tadahiro Sekimoto jack Keil Wolf Boris e. Chertok (deceased)
Institute for International university of California russian academy of Sciences
Socio-economic Studies San Diego, California, uSa Moscow
tokyo Sponsor: at&t labs
Sponsor: Ieee Foundation nikolai n. Sheremetevsky (deceased)
IEEE Jack S. Kilby Signal Processing Medal all-russia Institute for electromechanics
IEEE Edison Medal thomas W. parks Moscow
Federico Capasso Cornell university Sponsor: trW Foundation
harvard university Ithaca, new york, uSa
Cambridge, Massachusetts, uSa IEEE John von Neumann Medal
Sponsors: Ieee Foundation and Ieee edison james h. McClellan Barbara h. liskov
Medal Fund Georgia Institute of technology Massachusetts Institute of technology
atlanta, Georgia, uSa Cambridge, Massachusetts, uSa
IEEE James H. Mulligan Jr. Education Medal Sponsor: texas Instruments, Incorporated Sponsor: IBM
paul r. Gray
university of California IEEE Jun-ichi Nishizawa Medal IEEE Richard M. Emberson Award
Berkeley, California, uSa Frederick h. Dill Kenneth r. laker
Sponsors: the Mathworks, Inc., national hitachi Global Storage technologies university of pennsylvania
Instruments Foundation, pearson prentice San jose, California, uSa philadelphia, pennsylvania, uSa
hall, and Xilinx, Inc. Sponsors: Semiconductor research Sponsor: Ieee technical activities Board
Foundation and the Federation of electric
IEEE Medal for Engineering Excellence power Companies, japan IEEE Haraden Pratt Award
richard l. Doughty (retired) jerry r. yeargan
e. I. dupont de nemours & Co., Inc. IEEE Robert N. Noyce Medal university of arkansas
Wilmington, Delaware, uSa Craig r. Barrett Fayetteville, arkansas, uSa
Intel Corporation Sponsor: Ieee Foundation
h. landis Floyd, II Chandler, arizona, uSa
e. I. dupont de nemours & Co., Inc., Sponsor: Intel Foundation IEEE Corporate Innovation Recognition
Wilmington, Delaware, uSa hewlett-packard Company
IEEE Dennis J. Picard Medal for Radar
thomas e. neal Technologies and Applications QualCoMM, Incorporated
neal associates, ltd. David atlas Sponsor: Ieee
Guilford, Connecticut, uSa naSa Goddard Space Flight Center
Sponsor: Siemens aG Greenbelt, Maryland, uSa IEEE Ernst Weber Engineering
Sponsor: raytheon Company Leadership Recognition
IEEE Founders Medal pasquale pistorio
Mildred S. Dresselhaus StMicroelectronics, n.V.
Massachusetts Institute of technology Geneva
Cambridge, Massachusetts, uSa Sponsor: Ieee
Sponsor: Ieee Foundation
2004 Class of IEEE Fellows
In 2004, 260 Ieee Senior Members were elected to Ieee Fellow. this distinction is the highest membership grade any Ieee
member can achieve and is awarded each year to no more than 0.1 percent of the voting membership as of 31 December of
the preceding year. the grade of Ieee Fellow recognizes a member’s professional distinction for accomplishments in any of the
Ieee ﬁelds of interest that have contributed signiﬁcantly to advancing or applying engineering, science and technology.
Ieee life Fellow leo Beranek (left) received the u.S. national Ieee Fellow Vijay K. Bhargava (left) received the royal Society of
Medal of Science from president George W. Bush. Beranek was Canada’s 2004 thomas W. eadie Medal for his contributions to
honored for his contributions to the ﬁeld of acoustical research. wireless communications.
Ieee Fellow teck-Seng low (left) was presented with the nae presented its 2004 Bernard M. Gordon prize to Ieee
Singapore’s national Science and technology Medal, the life Fellow Frank S. Barnes (left) for pioneering the International
nation’s highest such award, from Singapore’s Minister of telecommunications program to produce leaders who bridge
education, tharman Shamugaratnam. engineering, social sciences and public policy. With him are 2004
Gordon prize Committee Chair alice agogino and nae Chair
George M.C. Fisher.
(From left) Ieee Members Charles p. thacker and alan C. Kay, Sir Stephen Gomersall (left), the united Kingdom’s ambassador
and Ieee Computer Society aªliate member Butler W. lampson to japan, presented Ieee life Fellow tsuneo nakahara with the
shared the national academy of engineering (nae) Charles Stark medal signifying his title of honorary Commander of the Most
Draper prize, along with robert W. taylor, for conceiving and excellent order of the British empire. the honor cited nakahara
developing the ﬁrst practical networked personal computers. for creating high-tech links between the u.K. and japan.
Congratulating them are 2004 Draper prize Committee Chair
aaron Cohen and nae president William a. Wulf.
2004 Board of Directors and Management Council
2004 IEEE Board of Directors
Front Row Third Row
james M. tien, Vice president, educational activities; john William o. Kennedy, Director & Delegate, region 7; john
W. Steadman, president, Ieee-uSa; ralph W. Wyndrum, jr., W. estey, Director & Delegate, Division VII; james D. Isaak,
Vice president, technical activities; Mohamed e. el-hawary, Director & Delegate, Division VIII; Gene F. hoffnagle,
Secretary; W. Cleon anderson, president-elect; arthur W. Director & Delegate, Division V; harold l. Flescher, Director
Winston, president; Michael S. adler, past president; Marc & Delegate, Division IV; William B. harrison, Director &
t. apter, Vice president, regional activities; Michael r. Delegate, region 3; john a. reagan, Director & Delegate,
lightner, Vice president, publication Services & products; Division IX; john W. Meredith, Director & Delegate, region 5;
pedro a. ray, treasurer; james t. Carlo, president, Ieee Francisco r. Martinez, Director & Delegate, region 9
Standards association Missing from photo: richard l. Doyle, Director & Delegate,
roger K. Sullivan, Director & Delegate, region 1; Moshe
Kam, Director & Delegate, region 2; jung u. Seo, Director
IEEE Management Council
& Delegate, region 10; theodore W. hissey, jr., Director Daniel j. Senese, Executive Director
emeritus; roberto Boisson de Marca, Director & Delegate, Chris j. Brantley, Professional Activities
Division III; evelyn h. hirt, Director & Delegate, region 6; Donald r. Curtis, Human Resources
lewis M. terman, Director & Delegate, Division I; anthony Durniak, Publications Activities
phillip t. Krein, Director & Delegate, Division II; eric herz, judith l. Gorman, Standards Activities
Director emeritus; enrique h. ruspini, Director & Delegate, Cecelia jankowski, Regional Activities
Division X; anthony C. Davies, Director & Delegate, Matthew S. loeb, Corporate Strategy and Communications
region 8; Burton j. loupee, Director & Delegate, region 4; richard D. Schwartz, Business Administration
Daniel j. Senese, executive Director Barbara Coburn Stoler, Educational Activities
Mary C. Ward-Callan, Technical Activities
Sally a. Waselik, Information Technology
Message From the Treasurer
I am pleased to present the audited ﬁnancial reports of the Ieee. offset by a reduction of uS$6.0 million net investment
these reports indicate that the overall ﬁnancial health of the income, total net investment income was uS$13.2 million in
organization continues to be strong. 2004 versus uS$19.2 million in 2003.
the Institute’s Statement of Financial position showed total
assets of uS$284.1 million on 31 December 2004. this is an the operational surplus in 2004 was uS$8.8 million. the
11.5% increase from 2003, while the Institute’s total liabilities surplus was further enhanced by the net investment gains
increased by 5.2% over the same time. overall, the Institute’s net of uS$13.2 million for 2004. the total net surplus including
assets (“reserves”) grew to uS$138.6 million from the restated operations and investment gains in 2004 was uS$22.0 million
2003 year-end balance of uS$116.6 million. the Ieee received an unqualiﬁed or clean opinion from ernst
In 2004, the Institute had revenues of uS$277.0 million, & young, l.l.p. in the report of Independent auditors. the
an increase of uS$26.8 million from 2003 as shown by the independent auditors meet with the Ieee audit Committee to
Statement of activities. the increase in revenue was primarily discuss the scope and results of their audit, their review on the
due to the following: adequacy of internal accounting controls, and the quality of
Dues and assessments revenue increased uS$1.4 million, ﬁnancial reporting prior to issuing their opinion.
despite a drop in u.S. membership, which was offset by an the Ieee is tax exempt under Section 501(c)(3) of the Internal
increase in non-u.S. members. revenue Code. the Ieee Foundation is a separately incorporated
periodical subscriptions and other publication activities aªliate of the Ieee; accordingly, its audited ﬁnancial statements
revenue increased uS$15.0 million primarily due to sales of are not included in the accompanying documents.
electronic products, including Iel whose gross revenue grew I submit these reports with the certainty that the Ieee
uS$12.4 million. continues to be a ﬁnancially sound organization.
Conference revenue increased uS$16.3 million due to an
enhanced conference accrual process.
other revenue increased uS$0.08 million. pedro a. ray, 2004 Ieee treasurer
Report of Independent Auditors
the Board of Directors audit also includes examining, on a test basis, evidence supporting
the Institute of electrical and the amounts and disclosures in the ﬁnancial statements, assessing
electronics engineers, Inc. the accounting principles used and signiﬁcant estimates made
by management, and evaluating the overall ﬁnancial statement
We have audited the accompanying statements of ﬁnancial presentation. We believe that our audits provide a reasonable basis
position of the Institute of electrical and electronics engineers, for our opinion.
Inc. (the “Institute”) as of December 31, 2004 and 2003, and In our opinion, the ﬁnancial statements referred to above
the related statements of activities and cash flows for the years present fairly, in all material respects, the ﬁnancial position of the
then ended. these ﬁnancial statements are the responsibility of Institute of electrical and electronics engineers, Inc. at December
the Institute’s management. our responsibility is to express an 31, 2004 and 2003, and the changes in its net assets and its cash
opinion on these ﬁnancial statements based on our audits. flows for the years then ended in conformity with accounting
We conducted our audits in accordance with auditing standards principles generally accepted in the united States.
generally accepted in the united States. those standards require as discussed in note 3 to the ﬁnancial statements, the Institute
that we plan and perform the audit to obtain reasonable assurance restated its 2003 ﬁnancial statements to reflect assets, liabilities
about whether the ﬁnancial statements are free of material and net assets of sections whose accounts were not previously
misstatement. We were not engaged to perform an audit of the included in the Institute’s ﬁnancial statements.
Institute’s internal control over ﬁnancial reporting. our audits
included consideration of internal control over ﬁnancial reporting
as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Institute’s internal control over
ﬁnancial reporting. accordingly, we express no such opinion. an May 20, 2005, except for note 3, as to which the date is august 31, 2005
Statement of Financial Position
December 31, 2004 and 2003 2004 2003
Assets (As restated, Note 3)
Cash and cash equivalents $ 6,040,500 $ 6,076,200
Accounts receivable, less allowance for doubtful accounts of $1,385,300 in 2004 and $1,583,700 in 2003 44,237,800 41,134,400
Inventories, prepaid expenses and other assets 14,148,400 14,107,400
Investments 181,715,800 156,637,300
Total current assets 246,142,500 217,955,300
Prepaid pension and other assets 6,824,200 4,508,400
Long-term investments 191,400 191,400
Land, buildings and equipment, net of accumulated depreciation 30,898,900 32,215,900
Total assets $ 284,057,000 $ 254,871,000
Liabilities and net assets
Accounts payable and accrued expenses $ 21,738,400 $ 19,572,100
Deposits by IEEE Foundation and others 8,310,100 7,984,500
Trading liabilities 120,900 396,100
Current portion of debt obligations 810,000 775,000
Current portion of capital lease obligations 1,006,500 1,065,100
Dues and assessments 37,030,700 37,615,000
Subscriptions and other 65,097,200 58,656,400
Total current liabilities 134,113,800 126,064,200
Debt obligations, less current portion 9,813,800 10,759,100
Obligations under capital leases, less current portion 1,541,300 1,445,500
Unrestricted 137,656,700 115,256,900
Temporarily restricted 740,000 1,153,900
Permanently restricted 191,400 191,400
Total net assets 138,588,100 116,602,200
Total liabilities and net assets $ 284,057,000 $ 254,871,000
Statement of Activities
Year Ended December 31, 2004 Unrestricted Restricted Restricted Total
Dues and assessments $ 45,062,600 $ 45,062,600
Periodical subscriptions, other publication activities
and educational products and services 128,523,400 128,523,400
Conventions, conferences and other technical activities 80,609,200 80,609,200
Investment income, net 13,173,700 $ 26,800 13,200,500
Other income 9,597,100 9,597,100
Net assets released from restrictions 440,700 (440,700) –
277,406,700 (413,900) 276,992,800
Publishing 113,293,800 113,293,800
Educational activities 2,401,800 2,401,800
Conventions, conferences and other technical activities 73,947,900 73,947,900
Services for and support of sections and branches 9,186,000 9,186,000
Membership records and services 48,584,700 48,584,700
Total program services
247,414,200 – 247,414,200
General and administrative 7,592,700 7,592,700
Total expenses 255,006,900 – 255,006,900
Change in net assets 22,399,800 (413,900) 21,985,900
Net assets, beginning of year 115,256,900 1,153,900 $ 191,400 116,602,200
Net assets, end of year $ 137,656,700 $ 740,000 $ 191,400 $ 138,588,100
See accompanying notes.
Statement of Activities
Year Ended December 31, 2003 (As restated, Note 3) Unrestricted Restricted Restricted Total
Dues and assessments $ 43,687,300 $ 43,687,300
Periodical subscriptions, other publication activities
and educational products and services 112,608,100 $ 882,800 113,490,900
Conventions, conferences and other technical activities 63,997,900 309,100 64,307,000
Investment income, net 19,131,500 41,100 19,172,600
Other income 9,487,900 32,500 9,520,400
Net assets released from restrictions 1,218,900 (1,218,900) –
Total revenue 250,131,600 46,600 250,178,200
Publishing 103,621,000 103,621,000
Educational activities 2,333,900 2,333,900
Conventions, conferences and other technical activities 53,843,600 53,843,600
Services for and support of sections and branches 8,603,600 8,603,600
Membership records and services 50,404,000 50,404,000
Total program services 218,806,100 – 218,806,100
General and administrative 5,781,100 5,781,100
Total expenses 224,587,200 – 224,587,200
Change in net assets 25,544,400 46,600 25,591,000
Net assets, beginning of year:
As previously reported 74,932,900 1,107,300 $ 191,400 76,231,600
Adjustment - net assets of previously excluded sections 14,779,600 14,779,600
As adjusted 89,712,500 1,107,300 191,400 91,011,200
Net assets, end of year $ 115,256,900 $ 1,153,900 $ 191,400 $ 116,602,200
Statements of Cash Flows
Year Ended December 31, 2004 and 2003 2004 2003
Operating Activities (As restated, Note 3)
Change in net assets $ 21,985,900 $ 25,591,000
Adjustments to reconcile change in net assets to net cash provided by operating activities:
Depreciation and amortization expense 6,119,100 6,066,900
Loss on disposal of ﬁxed assets – 111,300
Net realized and unrealized gains from investments (10,212,200) (18,538,900)
Change in fair value of interest rate swaps (135,300) (457,900)
Change in assets and liabilities:
Increase in accounts receivable (3,103,400) (2,611,400)
Increase in inventories, prepaid expenses and other assets (2,356,800) (4,428,700)
(Increase) decrease in accounts payable and accrued expenses (1,355,200) 265,100
Proceeds from sale of investments held for IEEE Foundation and others 14,400 15,878,800
Increase (decrease) in deposits 311,200 (14,738,800)
Increase in deferred income 5,856,400 4,099,200
Net cash provided by operating activities 17,124,100 11,236,600
Proceeds from sale of investments 325,708,000 299,097,500
Purchase of land, buildings and equipment (3,878,100) (3,065,900)
Purchases of investments (340,849,500) (301,435,400)
Net cash used in investing activities (19,019,600) (5,403,800)
Change in cash overdraft 3,521,500 (2,209,900)
Payment of debt obligations (775,000) (2,441,100)
Payment of capital lease obligations (886,700) (1,293,300)
Net cash provided by (used in) ﬁnancing activities 1,859,800 (5,944,300)
Net decrease in cash and cash equivalents (35,700) (111,500)
Cash and cash equivalents at beginning of year 6,076,200 6,187,700
Cash and cash equivalents at end of year $ 6,040,500 $ 6,076,200
Interest paid $ 1,005,400 $ 1,154,100
Acquisition of equipment through capital lease obligation $ 923,900 $ 1,662,000
See accompanying notes. 26
Notes to Financial Statements
1. Organization and Nature of Operations the Institute’s share of revenue and expense from conferences is
recognized principally when ﬁnancial reports are submitted by societies
the objectives of the Institute of electrical and electronics engineers, and councils.
Inc. (the “Institute” or “Ieee”) are (a) scientiﬁc and educational, revenue from contributions is recorded at its fair value in the period
directed toward the advancement of the theory and practice of electrical received including unconditional promises to give and is classiﬁed
engineering, electronics engineering, computer engineering, computer based upon the existence or absence of donor-imposed restrictions.
sciences, and the allied branches of engineering and related arts and Contributions received by the Institute are primarily private and
sciences and (b) professional, directed toward the advancement of the governmental grants containing donor-imposed restrictions as to their
standing of the members of the profession it serves. use. these restrictions are usually fulﬁlled within a two-year period by
Implementation of the Institute’s objectives is primarily performed satisfying the respective restrictions.
through regions, sections, societies and councils and their ﬁnancial
results are incorporated in the accompanying Institute’s ﬁnancial Cash and Cash Equivalents
statements. these units were formed to serve the specialized technical Cash and cash equivalents include highly liquid short-term investments
interests of members and to coordinate these with the local activities purchased with maturities of three months or less from the date of
of the sections and the broader activities of the Institute. the societies acquisition.
and councils promote the technical interests of their members through
symposia, conferences and various publications. Investments
Investments, except special funds, are carried at fair value which is
2. Summary of Signiﬁcant Accounting Policies generally determined on the basis of quoted market prices (see note 4).
Special funds are managed by an international investment adviser and
Financial Statements management group of companies (the “Investment Manager”) and
resources are reported for accounting purposes into separate classes invested primarily in non-u.S. equity and debt securities. these are
of net assets based on the existence or absence of donor-imposed carried at the unit price computed by the Investment Manager based
restrictions. In the accompanying ﬁnancial statements, net assets that on the respective funds’ net assets.
have similar characteristics have been combined into similar categories realized gains and losses on sales of investments are determined
as follows: on an average cost basis.
permanently restricted –net assets subject to donor-imposed
stipulations that they be maintained permanently by the Institute. Such Inventories
assets primarily include the Institute’s permanent endowment funds. Inventories consist of periodicals published by the Institute and are
the principal of these endowments cannot be expended. the income stated at the lower of average cost or net realizable value.
earned can only be used as designated by the donor, and is then
recorded as temporarily restricted. Land, Buildings and Equipment
temporarily restricted –net assets whose use by the Institute is Depreciation is provided on a straight-line basis over the estimated
subject to donor-imposed stipulations that can be fulﬁlled by actions useful life of the asset. Buildings, furniture and equipment are
of the Institute pursuant to those stipulations or that expire by the depreciated over periods ranging from three to thirty-ﬁve years. assets
passage of time. these temporarily restricted net assets are designated under capital leases are depreciated over the shorter of the lease terms
principally for awards, medals and speciﬁc projects. or the useful lives of the assets. Building improvements are amortized
unrestricted–net assets that are not subject to donor-imposed over twenty years.
stipulations. unrestricted net assets may be designated for speciﬁc upon retirement or other disposition of ﬁxed assets, the cost and
purposes by action of the Board of Directors or may otherwise be related accumulated depreciation are removed from the accounts and
limited by contractual agreements with outside parties. unrestricted the resulting gains or losses, if any, are reflected in operations.
net assets can be utilized to carry out any of the purposes of the
Institute. Accounts Payable and Accrued Expenses
expenses are generally reported as decreases in unrestricted net Included in accounts payable and accrued expenses are cash
assets. expiration of donor-imposed stipulations that simultaneously overdrafts. at December 31, 2004 and 2003 these cash overdrafts
increase unrestricted net assets and decrease temporarily restricted net amounted to $4,241,700 and $720,200, respectively.
assets are reported as reclassiﬁcations. temporarily restricted revenues
received and expended during the same ﬁscal year are recorded as Use of Estimates
unrestricted revenues and expenses in the statement of activities. the preparation of ﬁnancial statements in conformity with
the ﬁnancial statements of the Institute should be read in accounting principles generally accepted in the united States requires
conjunction with the ﬁnancial statements of the Ieee Foundation, management to make estimates and assumptions that affect the
a related organization (see note 14). reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the ﬁnancial statements and the
Revenue Recognition reported amounts of revenues and expenses during the reporting
revenue from membership dues and yearly periodical subscriptions period. actual results could differ from those estimates.
is recognized ratably over the period to which it pertains. amounts
received in advance are included in deferred income. revenue and Reclassiﬁcations
expense from conferences are recorded on the accrual basis in the Certain reclassiﬁcations have been made to prior year balances in order
year the conferences are held, except for smaller conferences where to conform to the current year presentation.
3. Adjustment to Opening Net Assets
In prior years, the accounts of sections were not included in the ﬁnancial statements of the Institute. as a result of the initiatives undertaken in ﬁscal 2004 to
strengthen the ﬁnancial oversight over geographic units, the Institute determined that the accounts of the sections should have been included in the Institute’s
In ﬁscal 2004, the Institute’s ﬁnancial statements for the year ended December 31, 2003, including net assets as of December 31, 2002, were restated to
include the ﬁnancial position and changes in the net assets and cash flows of these sections.
the net effect of these adjustments, which do not impact temporarily or permanently restricted net assets, was to increase the Institute’s net assets as follows:
As Previously Reported Adjustment As Restated
Statement of ﬁnancial position at December 31, 2003:
Total assets $ 247,540,400 $ 7,330,600 $ 254,871,000
Total liabilities 144,944,100 (6,675,300) 138,268,800
Net assets $ 102,596,300 $ 14,005,900 $ 116,602,200
Statement of activities for the year ended December 31, 2003:
Total revenue $ 246,536,100 $ 3,642,100 $ 250,178,200
Total expenses 220,171,400 4,415,800 224,587,200
Change in net assets 26,364,700 (773,700) 25,591,000
Net assets, beginning of year 76,231,600 14,779,600 91,011,200
Net assets, end of year $ 102,596,300 $ 14,005,900 $ 116,602,200
Statement of cash flows for the year ended December 31, 2003:
Net cash provided by (used in):
Operating activities $ 11,054,900 $ 181,700 $ 11,236,600
Investing activities (5,467,000) 63,200 (5,403,800)
Financing activities (5,944,300) – (5,944,300)
Net (decrease) increase in cash and cash equivalents (356,400) 244,900 (111,500)
Cash and cash equivalents at beginning of year 1,278,100 4,909,600 6,187,700
Cash and cash equivalents at end of year $ 921,700 $ 5,154,500 $ 6,076,200
Investments and trading liabilities at December 31, 2004 and 2003 consist of the following:
2004 Cost 2004 Fair Value 2003 Cost 2003 Fair Value
Investments (As restated, Note 3)
Due from brokers and accrued interest $ 39,400 $ 39,400 $ 11,200 $ 11,200
Money market and mutual funds 38,100,800 38,100,800 54,540,500 54,624,400
38,140,200 38,140,200 54,551,700 54,635,600
Equity securities 39,353,100 52,206,700 41,207,300 50,638,900
Money market and mutual funds 1,760,500 1,760,500 1,459,800 1,459,800
Due from brokers and accrued interest and fees 174,600 174,600 467,500 467,500
41,288,200 54,141,800 43,134,600 52,566,200
Fixed income investments:
Money market and mutual funds 67,118,300 68,258,600 25,239,300 25,974,100
Capital Guardian International (Non-U.S.) Equity Fund for Tax-Exempt Trusts 13,137,400 16,575,000 14,619,400 17,467,700
Emerging Markets Growth Fund 2,964,300 4,791,600 4,660,400 6,185,100
16,101,700 21,366,600 19,279,800 23,652,800
Total investments 162,648,400 181,907,200 142,205,400 156,828,700
Due to brokers and accrued fees (111,900) (111,900) (388,400) (388,400)
Fixed income investments:
Due to brokers and accrued fees (9,000) (9,000) (7,700) (7,700)
Total trading liabilities (120,900) (120,900) (396,100) (396,100)
Net investments $ 162,527,500 $ 181,786,300 $ 141,809,300 $ 156,432,600
5. Investment Income
net investment income (loss) for the years ended December 31, 2004 and 2003 consisted of the following:
2004 2003 (As restated, Note 3)
Interest and dividends $ 2,988,300 $ 633,700
Realized gains (losses), net 5,576,700 (2,793,100)
Change in net unrealized gains 4,635,500 21,332,000
$ 13,200,500 $ 19,172,600
6. Land, Buildings and Equipment
Fixed assets, carried at cost, and the related accumulated depreciation at December 31, 2004 and 2003 consist of the following:
2004 2004 2003 2003
Cost Accumulated Depreciation Cost Accumulated Depreciation
(As restated, Note 3)
Buildings $ 18,625,300 $ 8,440,300 $ 18,625,300 $ 7,913,100
Furniture and equipment 36,641,400 23,645,800 41,823,000 28,241,900
Building improvements 8,569,300 2,824,600 8,441,500 2,492,500
63,836,000 34,910,700 68,889,800 38,647,500
Land 1,973,600 – 1,973,600 –
Total $ 65,809,600 $ 34,910,700 $ 70,863,400 $ 38,647,500
Furniture and equipment included assets under capital leases of $6,354,700 and $7,018,100 as of December 31, 2004 and 2003, respectively.
7. Long-term Debt
Debt obligations at December 31, 2004 and 2003 consist of loans from proceeds of bonds issued by the new jersey economic Development authority (“njeDa”),
NJEDA 2001 Series A Bonds, average coupon of 4.55%, annual principal and sinking fund payments through April 1, 2014 (the
“Series A Bonds”); collateralized by irrevocable direct-pay letter of credit issued by Wachovia Bank, NA (“Wachovia Bank”). $ 6,910,000 $ 6,995,000
NJEDA 2001 Series B Bonds, average coupon of 4.34%, annual principal and sinking fund payments through April 1, 2014
(the “Series B Bonds”); collateralized by irrevocable direct-pay letter of credit issued by Wachovia Bank. 3,125,000 3,365,000
NJEDA 1994 Bonds, average coupon of 6.30%, annual principal and sinking fund payments through April 1, 2004 (the
“1994 Bonds”); collateralized by irrevocable direct-pay letter of credit issued by Wachovia Bank, fully paid on April 1, 2004. 450,000
Liability under swap agreements:
Series A Bonds 423,200 518,700
Series B Bonds 165,600 205,400
$ 10,623,800 $ 11,534,100
the Series a Bonds consist of variable rate bonds issued in the renovation of a 15,000 square-foot warehouse facility into a new computer
aggregate amount of $7,065,000 on May 10, 2001 for the purpose of center and related equipment purchases and installations. In conjunction
advance refunding a portion of the 1994 Bonds to take advantage of lower with the issuance of the Series B Bonds, the Institute entered into a
interest rates. the advance refunding resulted in the defeasance and legal swap agreement dated august 22, 2001 with Wachovia Bank whereby the
extinguishment of the callable portion of the 1994 Bonds due from 2005 to Institute’s interest rate obligation under the Series B Bonds is ﬁxed at 4.34%
2014 totaling $6,390,000. In conjunction with the issuance of the Series a per annum (the “Series B Swap”). the underlying notional amount of the
Bonds, the Institute entered into a swap agreement on april 24, 2001 Series B Swap amortizes through april 1, 2014 and matches the outstanding
with Wachovia Bank whereby the Institute’s interest rate obligation under balance of the Series B Bonds, which amounted to $3,125,000 and
the Series a Bonds is ﬁxed at 4.55% per annum (the “Series a Swap”). $3,365,000 as of December 31, 2004 and 2003, respectively. the estimated
the underlying notional amount of the Series a Swap amortizes through fair value of the Series B Swap reflects a liability of approximately $165,600
april 1, 2014 and matches the outstanding balance of the Series a Bonds, and $205,400 at December 31, 2004 and 2003, respectively. the Series B
which amounted to $6,910,000 and $6,995,000 as of December 31, 2004 Bonds are due on april 1, 2014, but are subject to mandatory annual sinking
and 2003, respectively. the estimated fair value of the Series a Swap reflects fund redemption on april 1 of each year in amounts ranging from $250,000 in
a liability of approximately $423,200 and $518,700 at December 31, 2004 2005 to $385,000 in 2014.
and 2003, respectively. the Series a Bonds are due on april 1, 2014, but are an irrevocable standby letter of Credit and reimbursement agreement
subject to mandatory annual sinking fund redemption on april 1 of each year with Wachovia Bank, dated May 1, 2001 and amended on September 1, 2001,
in amounts ranging from $560,000 in 2005 to $840,000 in 2014. collateralizes both Series a Bonds and Series B Bonds. the letter of credit
the Series B Bonds consist of variable rate bonds issued in the aggregate amounted to $10,186,300 at December 31, 2004.
amount of $3,810,000 on September 28, 2001 to permanently ﬁnance the
Future principal repayments required under the njeDa Bond agreements
2005 $ 1,204,600
as of December 31, 2004 are as follows:
2005 $ 810,000 2008 334,400
2006 845,000 2009 76,600
Less amount representing interest imputed at an average rate of 5.2% 575,300
Thereafter 5,600,000 Present value of minimum lease payments $ 2,547,800
8. Commitments and Contingencies
Interest expense on the debt obligations amounted to approximately
$569,600 for 2004 and $636,500 for 2003. the interest expense associated at December 31, 2004, minimum rental commitments under noncancelable
with the interest swap exposures resulted in net savings of $135,300 and operating leases for oªce space and computer equipment are as follows:
$207,900 in 2004 and 2003, respectively.
the Institute maintains a $25,000,000 credit facility consisting of 2005 $ 1,562,200
$13,750,000 with Wachovia Bank and $11,250,000 with the Bank of new york 2006 1,321,500
under a revolving credit agreement dated February 28, 2002, as amended.
the Institute is charged commitment fees, which amounted to $31,800
in 2004 and $47,500 in 2003, on the unused portion of the credit facility.
Interest expense resulting from the utilization of the credit facility during
2003 amounted to approximately $1,500. the credit facility was not utilized in Thereafter 2,021,100
2004. the Institute had no outstanding borrowings under the credit facility $ 7,596,300
at December 31, 2004 or 2003. the revolving credit agreement, as amended,
expires on october 31, 2005.
the Institute is required to maintain certain ﬁnancial ratios under the the leases for the oªce space are subject to escalation. total rent expense
amended and restated letter of Credit and reimbursement agreement with for noncancelable operating leases amounted to $2,920,700 and $3,340,900
Wachovia Bank and the revolving credit agreement with Wachovia Bank and in 2004 and 2003, respectively.
the Bank of new york. the Institute is in compliance with these ratios as of at December 31, 2004, the Institute had an irrevocable standby letter of
December 31, 2004. credit in the amount of $583,000 with Wachovia Bank, which serves as a
security deposit as required by the terms of its lease agreement with park
Obligations Under Capital Leases avenue Building Company, llC.
the approximate annual rental payments for obligations under capital leases the Institute is currently involved in certain litigation and claims arising in
follow: the ordinary course of business. the Institute’s management believes that
the amount of any liability arising out of these actions that may be sustained,
if any, beyond existing insurance liability coverages would not have a material
impact on the accompanying ﬁnancial statements.
9. Pension and Other Postretirement Beneﬁts
the Institute sponsors two qualiﬁed and one non-qualiﬁed pension plan and other postretirement beneﬁt plans for its employees. the following tables provide a
reconciliation of the changes in the plans’ beneﬁt obligations and fair value of assets over the two-year period ended December 31, 2004, and a statement of the
funded status as of December 31 of both years:
2004 Pension Beneﬁts 2003 Pension Beneﬁts 2004 Other Beneﬁts 2003 Other Beneﬁts
Reconciliation of beneﬁt obligation
Obligation at January 1 $ 58,781,500 $ 47,501,800 $ 2,519,700 $ 2,258,600
Service cost 3,918,300 3,302,500 83,600 85,000
Interest cost 3,382,500 3,125,200 147,000 144,400
Plan amendments – 508,000 – –
Actuarial loss (gain) 368,500 7,099,200 28,600 162,600
Beneﬁt payments (3,245,800) (2,755,200) (93,700) (130,800)
Obligation at December 31 $ 63,205,000 $ 58,781,500 $ 2,685,200 $ 2,519,800
Reconciliation of fair value of plan assets
Fair value of plan assets at January 1 $ 49,809,900 $ 38,879,100
Actual return on plan assets 5,902,500 7,939,500
Employer contributions 6,025,700 5,746,500 $ 93,700 $ 130,800
Beneﬁt payments (3,245,800) (2,755,200) (93,700) (130,800)
Fair value of plan assets at December 31 $ 58,492,300 $ 49,809,900 $ – $ –
Funded status at December 31 $ (4,712,700) $ (8,971,600) $ (2,685,200) $ (2,519,800)
Unrecognized transition (asset) obligation – – 457,600 503,400
Unrecognized prior service cost 1,153,500 1,310,300 255,600 288,800
Unrecognized loss (gain) 10,454,400 12,240,000 584,500 575,200
Net amount recognized - prepaid (accrued) beneﬁt cost $ 6,895,200 $ 4,578,700 $ (1,387,500) $ (1,152,400)
the accumulated beneﬁt obligation for all deﬁned beneﬁt pension plans was $49,691,400 at December 31, 2004 and $46,684,400 at December 31, 2003.
Information for beneﬁt plans with an accumulated beneﬁt obligation in excess of plan assets as of December 31 follows:
2004 Pension Beneﬁts 2003 Pension Beneﬁts 2004 Other Beneﬁts 2003 Other Beneﬁts
Projected beneﬁt obligation $ 113,400 $ 117,400 $ – $ –
Accumulated beneﬁt obligation $ 113,400 $ 117,400 $ – $ –
Fair value of plan assets $ – $ – $ – $ –
the following table provides the components of net periodic beneﬁt cost for the plans for 2004 and 2003:
2004 Pension Beneﬁts 2003 Pension Beneﬁts 2004 Other Beneﬁts 2003 Other Beneﬁts
Service cost $ 3,918,300 $ 3,302,500 $ 83,600 $ 85,000
Interest cost 3,382,500 3,125,200 147,000 144,300
Expected return on plan assets (4,155,400) (3,237,700) – –
Amortization of transition (asset) obligation – – 45,800 45,800
Amortization of prior service cost 156,800 162,500 33,200 33,200
Amortization of net loss 407,100 506,900 19,300 19,800
Net periodic beneﬁt cost $ 3,709,300 $ 3,859,400 $ 328,900 $ 328,100
the prior service costs are amortized on a straight-line basis over the average remaining service period of active participants. Gains and losses in excess of
10% of the greater of the beneﬁt obligation and the market-related value of assets are amortized over the average remaining service period of active participants.
the Institute has multiple non-contributory non-pension postretirement beneﬁt plans.
the assumptions used in the measurement of the Institute’s beneﬁt obligation are shown in the following table:
2004 Pension Beneﬁts 2003 Pension Beneﬁts 2004 Other Beneﬁts 2003 Other Beneﬁts
Weighted-average assumptions as of December 31:
Discount rate 5.75% 6.00% 5.75% 6.00%
Rate of compensation increase 3.50% 3.50% N/A N/A
the assumptions used in the measurement of the net periodic beneﬁt cost are shown in the following table:
2004 Pension Beneﬁts 2003 Pension Beneﬁts 2004 Other Beneﬁts 2003 Other Beneﬁts
Weighted-average assumptions as of December 31:
Discount rate 6.00% 6.50% 6.00% 6.50%
Expected return on plan assets 8.50% 8.50% N/A N/A
Rate of compensation increase 3.50% 3.50% N/A N/A
the healthcare plan beneﬁts are a flat dollar reimbursement to the retirees toward healthcare premiums. no increase in the reimbursement amount is assumed.
Ieee determines its assumptions for the expected rate of return on plan assets for its retirement plans based on ranges of anticipated rates of return for each
asset class. a weighted range of nominal rates is then determined based on target allocations for each asset class. Ieee considers the expected rate of return to
be a longer-term assessment of return expectations and does not anticipate changing this assumption annually unless there are signiﬁcant changes in economic
conditions. the expected rate of return for each plan is based upon its expected asset allocation. Market performance over a number of earlier years is evaluated
covering a wide range of economic conditions to determine whether there are sound reasons for projecting forward any past trends.
Ieee’s pension and postretirement plan asset allocation for the u.S. plans at the end of 2004 and 2003, and the target allocation for 2004 by asset category
based on asset fair values are as follows:
2004 Target Pension Assets at December 31 Postretirement Assets at December 31
Asset Allocation 2004 2003 2004 2003
Equity securities 65% 65% 64% N/A N/A
Debt securities 35% 27% 29% N/A N/A
Real estate – – – N/A N/A
Cash and cash equivalents – 8% 7% N/A N/A
Other investments – – – N/A N/A
Total 100% 100% 100% N/A N/A
third-party investment managers manage Ieee’s pension plan assets. maintain the funds’ ability to meet all required beneﬁt obligations. risk
assets are rebalanced, as the Company deems appropriate. Ieee’s is controlled through diversiﬁcation of asset types and investments in
investment strategy with respect to its pension asset is to maintain a domestic and international equities, ﬁxed income securities and cash.
diversiﬁed investment portfolio across several asset classes targeting an the target asset allocation is 65% equities and 35% debt securities.
annual rate of return of 8.50%, while ensuring that the accumulated beneﬁt the guidelines allow the managers to keep up to 5% in cash and cash
obligation is fully funded. to develop the expected long-term rate of return equivalents. Cash is higher at year end due to the annual pension
on assets assumption, the Company considered the historical returns and contribution. the contribution made at December 31, 2004 and 2003 was
the future expectations for returns for each asset class, as well as the target approximately $6 million and $5 million, respectively.
asset allocation of the pension portfolio.
Ieee’s pension and postretirement funds’ investment strategies are to Contributions
invest in a prudent manner for the exclusive purpose of providing beneﬁts under the IrS minimum funding regulations there is no 2005 required
to participants. the investment strategies are targeted to produce a total minimum contribution to the qualiﬁed deﬁned beneﬁt pension plans.
return that, when combined with Ieee’s contributions to the funds, will however, Ieee is considering a discretionary contribution to the qualiﬁed
pension plans within the next year. no amount has been determined net assets that were released from donor restrictions by incurring expenses
as of yet. satisfying the restricted purposes during ﬁscal 2004 and 2003 were as follows:
Ieee expects to contribute approximately $18,000 to its non-qualiﬁed 2004 2003
pension plan and approximately $156,000 to its other postretirement beneﬁt
plans during 2005. Grant funds held for speciﬁc purposes $ 422,200 $ 1,186,100
Funds held for awards, medals and
Expected Beneﬁt Payments other speciﬁc purposes 18,500 32,800
Pension Beneﬁts Other Beneﬁts $ 440,700 $ 1,218,900
2005 $ 2,328,100 $ 156,100
2006 2,573,400 155,300
2007 3,311,200 156,000 14. Related Parties
2008 4,232,500 159,700 IEEE Foundation, Incorporated
2009 4,142,800 162,800 the Institute transacts with the Ieee Foundation, Incorporated (the
2010 to 2014 27,019,700 877,000 “Foundation”), a related organization. the Foundation performs activities
in support of the scientiﬁc and educational functions and programs of the
Institute. the Institute contributed $536,000 and $518,000 in 2004 and 2003,
10. 401(k) Savings and Investment Plan respectively, to the Foundation. the Institute provides certain accounting and
administrative services to the Foundation. the Foundation paid $354,000
the Institute has a deﬁned contribution 401(k) Savings and Investment in 2004 and $342,000 in 2003 to the Institute for these support services.
plan for eligible employees. employees are eligible to participate in the plan the Institute solicits contributions on behalf of the Foundation through
after the start of the next pay period following thirty days of employment. its annual member renewal process. total contributions solicited were
under the plan, employees may generally contribute from 2% to 16% of $516,100 and $541,000 in 2004 and 2003, respectively. the Institute holds
their salary, however, not in excess of IrS limitations. the Institute provides on deposit $1,059,900 and $1,898,700 from the Foundation at December
a 100% matching contribution up to 4% of each employee’s salary. the 31, 2004 and 2003, respectively. these amounts are invested by the Institute
Institute contributed $1,998,600 and $2,129,800 to the plan in 2004 and on behalf of the Foundation. receivables due from the Foundation include
2003, respectively. grants receivable of $375,700 and $823,200 at December 31, 2004 and 2003,
respectively, and other receivables of $30,700 and $13,300 at December 31,
11. Tax Status 2004 and 2003, respectively. amounts due to the Foundation were $92,500
and $96,700 at December 31, 2004 and 2003, respectively.
the Institute is qualiﬁed under Section 501(c)(3) of the Internal revenue Summarized ﬁnancial data of the Foundation for 2004 and 2003 are
Code as an organization exempt from federal income taxes. as follows:
December 31, 2004 December 31, 2003
12. Financial Instruments and Risk Management Total assets $ 25,297,900 $ 23,830,300
Cash Total liabilities 594,300 979,900
the Institute maintains cash balances which, at times, are in excess of the Net assets 24,703,600 22,850,400
Federal Deposit Insurance Corporation insured amounts. the Institute
mitigates this risk by placing its cash in high quality ﬁnancial institutions. Revenues $ 4,050,400 $ 5,169,900
Expenses 2,197,200 2,461,200
a portion of the Institute’s revenues from periodical subscriptions, other IEEE - Industry Standards and Technology Organization
publication activities and educational products and services is sold by the Institute enters into transactions with the Ieee-Industry Standards
a company to end users. the amount due from the company for such and technology organization (“Ieee-ISto”), a related organization. the
sales accounts for approximately 58% and 56% of the Institute’s accounts Ieee-ISto is an organization operating for the development of industry
receivable at December 31, 2004 and 2003, respectively. standards. the Institute provides certain professional services and facilities
that are reimbursed by the Ieee-ISto. total combined revenues from these
Debt Obligations transactions were $215,700 and $225,900 for 2004 and 2003, respectively.
the fair value of the Institute’s debt obligations (including current receivables due from the Ieee-ISto at December 31, 2004 and 2003 are
installments) is estimated based on quoted market prices for similar debt $768,600 and $769,400, respectively. the Institute’s management believes
of the same remaining maturities. at December 31, 2004 and 2003, the that ISto intends to repay these receivables. however, due to ISto’s ﬁnancial
estimated fair value of the Institute’s debt was $11,911,800 and $13,480,700, condition and the extended time period it may take to receive such payment,
respectively. the Institute utilizes interest rate swap agreements to manage the Institute provided a full allowance for the amount due as of December 31,
the risk on interest rates associated with its debt obligations. 2004 and 2003.
Summarized ﬁnancial data of the Ieee-ISto for 2004 and 2003 are
13. Net Assets as follows:
December 31, 2004 December 31, 2003
temporarily restricted and permanently restricted net assets consist of
the following: Total assets $ 4,010,200 $ 2,755,200
December 31, 2004 December 31, 2003 Total liabilities 4,720,200 3,618,300
Temporarily Restricted: Net assets (710,000) (863,100)
Grant funds held for speciﬁc purposes $ 355,100 $ 777,300 Revenues $ 4,935,100 $ 4,168,500
Funds held for awards, medals and Expenses 4,782,000 4,564,300
other speciﬁc purposes 384,900 376,600
$ 740,000 $ 1,153,900
Endowment Principal $ 191,400 $ 191,400
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