ANNUAL REPORT 2014

AMERICAN KENNEL CLUB

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Annua l Repor t 2014AMERICAN KENNEL CLUB Annua l Repor t 2014

ANNUAL MESSAGE from the Chairman & President

One hundred thirty years after our incorporation, the American Kennel Club continues to enhance our position as the

purebred dog’s stalwart supporter and now, more than ever, an innovator in our field. In 2014 we made notable gains

in our quest to create and deliver the best and brightest programs, products and services for an ever expanding,

increasingly international community of dog lovers. Central to our mission to advance the welfare of all dogs is our

goal to educate as many people as possible about responsible dog ownership. By expanding our programs and leveraging

new communication channels to extend our reach, 2014 was a year of great change and welcome growth.

Always seeking to provide new ways for people to enjoy bonding with their dogs, AKC introduced some exciting

events to our portfolio. A partnership with North America Diving Dogs brought the first ever dock-diving event to

AKC, adding another great reason to keep our dogs engaged and active right along with us. Four new therapy dog ti-

tles and an advanced AKC Canine Good Citizen program made way for greater community service with dogs, rein-

forcing their value to society. Our tried and true sports in the Conformation, Companion, and Performance realms

grew to 18,791 events in 2014, hosting nearly 3.2 million entries, proving that where there are engaged dog lovers,

AKC is there to serve them.

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AMERICAN KENNEL CLUB

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Annua l Repor t 2014AMERICAN KENNEL CLUB Annua l Repor t 2014

And now, more than ever, AKC has their hearts, minds, eyes and ears. In 2014, we saw our Facebook audience exceed

the two million mark, boasting ninety percent engagement among our fans. Our companion to AKC.org, Woofipedia,

topped one million followers. A favorite event of the New York City press, AKC’s annual Most Popular Breeds campaign,

achieved 1.6 billion media impressions. During the airing of the Super Bowl, viewers in the Raleigh area saw for the

first time an AKC/AKC Reunite public service announcement about disaster preparedness for pets. AKC Publications

furthered its outreach to the digital audience with the creation of e-books, while continuing to produce award-winning

work in AKC Family Dog and a highly anticipated 21st edition of The AKC New Complete Dog Book.

A new sponsorship agreement with Ameriprise brings corporate underwriting to the AKC Canine Good Citizen program,

our flagship training curriculum that celebrated its twenty-fifth anniversary in 2014. The evolving AKC CGC program

nears its million-dogs-served mark, thanks to our collaboration with AKC CGC Evaluators and AKC dog clubs

throughout the country.

Our affinity credit-card program, the AKC Visa Card, was transformed with the addition of a new issuer, Alliance Data

Comenity Bank. A long-awaited feature of the program allows AKC dog lovers to customize their cards with an image

of their own dog, adding one more reason to support AKC’s good works with every purchase.

In the past year, we’ve made great strides in teaching more people about the joys of owning a purebred dog and offering

more ways to enrich their lives with us. Evidence of our success was an increase in our 2014 registrations, one of the

key measurements of AKC’s impact among breeders and owners. Emboldened by our dedicated following of core

constituents and new fans—owners of 170 breeds, rescues, and mixes among them—AKC is more than just the only

not-for-profit dog registry in America. We’re America’s Kennel Club.

DENNIS B. SPRUNGPresident/CEO

ALAN KALTERChairman of the Board

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AMERICAN KENNEL CLUB

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2014 THE AMERICAN KENNEL CLUB

BOARD OF DIRECTORS

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Alan KalterCHAIRMAN

Dr. J. Charles GarvinVICE CHAIRMAN

Class of 2015

Robert A. Amen Dr. Carmen L. Battaglia Steven D. Gladstone

Class of 2016

Patricia M. Cruz William J. Feeney Thomas S. Powers

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James R. Dok Dr. J. Charles Garvin Ronald H. Menaker

Dennis B. SprungEX OFFICIO

Class of 2017

Harvey M. WoodingLee Arnold Carl C. Ashby, III Alan Kalter

Class of 2018

AMERICAN KENNEL CLUB

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Annua l Repor t 2014AMERICAN KENNEL CLUB Annua l Repor t 2014

2014: AKC YEAR IN REVIEW

January• During a well-attended AKC Communica-

tions press event in New York, it is announced

that the Labrador Retriever led 2013 individ-

ual dog registrations. Rounding out the top

five are the German Shepherd Dog,

Golden Retriever, Beagle, and Bulldog.

• More than 60 AKC Legislative Liaisons from

around the country gather in Raleigh for the

Government Relations department’s AKC

Legislative Conference.

• Dr. Joseph H. Kinnarney is named the first

American Veterinary Medical Association

liaison to the AKC.

• The Trap Falls Kennel Club, Northwest Obedience Club, and Black Hills Dog Training Club win AKC Community

Achievement Awards.

February• The town of Ridgewood, New Jersey, wins the first AKC Dog-Friendly Community Award.

• The annual Barkfest at Bonhams brunch and art auction preview benefits the AKC Humane Fund.

• The Dog Writers Association of America names AKC Family Dog Best All-Breed Magazine and AKC Gazette

Best Online Magazine. In the 25th-anniversary year of Canine Good Citizen, CGC Director Mary Burch is

inducted into the DWAA Hall of Fame.

• President Obama signs a farm bill addressing AKC concerns about regula-

tory changes to the Animal Welfare Act regarding the redefinition of re-

tailpet stores and licensing exemptions.

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• President Obama signs a farm bill addressing AKC concerns about

regulatory changes to the Animal Welfare Act regarding the redefinition

of retailpet stores and licensing exemptions.

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March• AKC Delegates elect James Dok (Gig Harbor Kennel Club), Dr. J. Charles

Garvin (Dalmatian Club of America), and Ronald Menaker (Rockford-

Freeport Illinois Kennel Club) to the AKC Board of Directors, Class of

2018. The Board re-elects Alan Kalter (American Bullmastiff Association)

Chairman of the Board and elects Dr. Garvin Vice Chairman.

• At Birmingham, England, three AKC/USA agility teams win their classes in

international competition at Crufts.

• Thirteen national champions are crowned at the AKC Companion Events

Extravaganza at Harrisburg, Pennsylvania. The event includes the AKC

National Agility Championship, AKC National Obedience Championship,

and the inaugural AKC Rally National Championship.

• AKC Government Relations launches Canine Legislative Support Fund

Educational Grants, designed to assist clubs and federations in educating

dog owners, the public, and elected officials at the federal, state, and

local levels.

April• AKC staff breaks ground on an ambitious project:

a complete redesign and overhaul of the AKC

website, slated for rollout in early 2015.

• AKC Pet Disaster Relief presents its first-ever

Disaster Relief Trailer, to Cleveland-Bradley

County (Tennessee). Purchased with assistance

from AKC clubs and AKC Reunite, the trailers are

temporary homes for at least 50 pets in the

aftermath of declared disasters.

• Diana Wilson and Guy Fisher join the AKC Execu-

tive Field Staff.

• The AKC Canine Health Foundation names five promising veterinary residents the 2014 class of

Clinician-Scientist Fellows.

• The Pioneer Valley Kennel Club and Tracy Sanderson (Greater Ocala Dog Club) win AKC Community

Achievement Awards.

• Alliance Data Systems Corporation signs a long-term agreement with the AKC to provide co-brand affinity

credit-card services.

• The Board of Directors establishes a Real Estate committee, chaired by Ronald Menaker.

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May• The German Shorthaired Pointer Club

of Reno hosts the all-breed AKC

Pointing Breed Gun Dog Champi-

onship, sponsored by Purina, Sport-

Dog, Cabela’s, Dog’s Unlimited,

Garmin/Tri-Tronics, and Eukanuba.

• Four new titles are added to the popular AKC Therapy Dog program;

Wirehaired Pointing Griffon GCh. Bear Hug Cee Barry Rockbridge, JH,

THDD, becomes the first AKC Distinguished Therapy Dog.

• AKC staff hosts “Canines at the Capitol” day on the capitol lawn

in Raleigh.

• MACH7 Prince Doggie, the most titled dog in AKC Canine Partners, earns his

seventh Master Agility Championship at Cuyahoga Valley Golden Retriever Club.

• The AKC recognizes dock diving titles earned by dogs competing in events

sanctioned by North America Diving Dogs.

• Gifts and grants from four AKC clubs and AKC Reunite help purchase an AKC

Disaster Relief Trailer for Cecil County, Maryland.

• Dog Show Scenes, an exhibition of paintings by Terry Chacon, opens at the AKC

Museum of the Dog.

June• As part of its Canine Athlete Initiative, the AKC Canine Health Foundation

funds a landmark clinical trial in the treatment of tendon injuries.

• Rhodesian Ridgeback GCh./DC Diamond’s Ariel of Le Crème, MC, LCX10, be-

comes the first dog in AKC Lure Coursing history to achieve the LCX10 title.

July• Acting on feedback from the dog fancy, the AKC Board of Di-

rectors adopts enhancements to the AKC National Owner-

Handled Series (NOHS).

• The Upper Potomac Valley Kennel Club wins an AKC Commu-

nity Achievement Award.

• The Coton de Tulear (Non-Sporting Group) and Wirehaired

Vizsla (Sporting Group) enter the AKC Stud Book.

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August• Rebecca Ann Gerevics (The Ohio State University) receives the 2014 AKC/American Veterinary Medical

Foundation Veterinary Scholarship.

• The AKC Humane Fund announces the winners of its Awards for Canine Excellence (ACE).

• AKC Pet Disaster Relief and the Orthopedic Foundation for Animals donate a disaster-relief trailer to Boone

County, Missouri.

• AKC Reunite pledges up to 20 Proscan-700 universal microchip scanners to Massachusetts shelters and

animal-control officers.

• Purina Pro Plan renews its sponsorship of the AKC Registered Handlers Programwith a three-year commitment.

• The AKC/USA World Agility Team win gold and bronze medals at the FCI Agility World Championship

in Luxembourg.

• AKC staff donates nearly three tons of food for families and pets in need during the AKC Pets and People

Food Drive.

• The AKC Facebook page exceeds 2.1 million fans; by year’s end, the number will top 2.5 million.

September • Hundreds of AKC-affiliated clubs and other dog organizations join the nationwide

celebration of Responsible Dog Ownership Days, sponsored by PetPartners, Inc.,

throughout the month. The flagship AKC RDO Day event is held at Raleigh’s

North Carolina State Fairgrounds.

• Susan M. Lilly is appointed CEO of the AKC Canine Health Foundation.

• AKC Pet Disaster Relief donates 16 microchip scanners to pet disaster trailers in

North Carolina.

• The AKC announces the names of seven “group finalist” honorees in its Breeder

of the Year program.

• The Morris Museum, of Morristown, New Jersey, installs The Dog Show: The Art of

Our Canine Companions, an exhibition featuring several impor-

tant paintings from the AKC collection.

• Several new staff-produced videos appear on the AKC

YouTube channel.

• The AKC is an affiliate sponsor for Capitol Hill Pet Night in

Washington, D.C.

• The AKC Canine Health Foundation launches an educational

and inspirational “Old Dogs Rule” campaign.

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October• The AKC announces the names of its 2014 Lifetime Achievement Award

honorees: Edd E. Bivin (Conformation), Robert J. Squires (Companion

Events), and Jeannie L. Wagner (Performance).

• During the worldwide Ebola scare, the AKC Canine Health Foundation

circulates “What You Need to Know About Ebola and Dogs” on social media.

• The Groupon Coupons blog features the AKC Humane Fund for its support

of pet-friendly domestic-violence shelters.

• The AKC Earthdog program celebrates its 20th anniversary this month.

• The Upper Potomac Valley Kennel Club wins an AKC Community

Achievement Award.

• The exhibition Dogs in Porcelain Sculpture opens at the AKC Museum of

the Dog.

• For the third consecutive month, the WOOFipedia website generates

more than a million unique views.

• AKC Publications signs a major advertising contract with Ceva

Animal Health.

November• AKC Pet Disaster Relief donates a disaster-

relief trailer to McClain County, Oklahoma.

• In collaboration with Barkleigh Productions,

the AKC offers Breed Grooming Certificate

Courses.

• New Jersey State Assemblyman David Russo

is named 2014 AKC Legislator of the Year for

his strong advocacy of responsible dog

ownership and the rights of dog owners.

• AKC-branded dog toys appear at Target stores

in time for the holiday shopping season;

WOOFipedia launches a Holiday Gift Pack.

December• A record entry competes at the 14th annual

AKC/Eukanuba National Championship in Orlando,

Florida. The show is held in conjunction with the AKC

Agility Invitational and the AKC Obedience Classic.

Other events include Juniors competition in conformation

and companion events, the AKC National Owner-Handled

Series Finals, a live-streamed AKC Breeder-2-Breeder seminar, the

Orlando show cluster, and specialties and FSS Open shows. For the first

time, a Best Veteran in Show award is offered.

• Gwen DeMilta and Carissa DeMilta Shimpeno (Alisaton Doberman Pinschers)

are recipients of the 2014 AKC Breeder of the Year Award; 15 individuals are

honored with AKC Breeder of the Year by Sport awards.

• AKC staff hosts the first in a series of Canine Good Citizen “meet-ups” in

New York City.

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AMERICAN KENNEL CLUB

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2014: OUR SPORT, BY THE NUMBERS

Conformation 4,584 AKC-sanctioned events; 1,610 all-breed dog shows with 1,356,066 entries; 2,494 specialty shows with

136,647 entries; 31 Open Shows with 780 entries; 449 4–6 Month Beginner Puppy competitions with 7,172 entries;

18,867 conformation championships, 6,231 Grand Championships, 200 Certificates of Merit, and 186 dual

championships earned

61 new judges approved for 69 breeds; 182 judges’ applications approved for 1,138 additional breeds; 243 total

judges’ applications processed

102 fully accredited AKC Registered Handlers; 25 handling clinics staged by Registered Handlers; 13 Educational

Seminars held by Registered Handlers; 4 $3,500 George Ward Memorial Scholarships awarded; 14 Conformation

Executive Field Representatives covering 88 percent of all-breed shows.

Companion and Performance Events2,268 obedience events with 136,453 entries and 10,411 titles earned; 97 Obedience Trial Champion (OTCH) titles

earned; 432 tracking trials with over 1,934 entries and 634 titles earned; 51 Champion Tracker titles earned; 3,533

agility events with over 1,235,000 entries and 51,043 titles earned; 3,028 Master Agility Champion (MACH) and 518

Preferred Agility Champion (PACH) titles earned; 2,294 rally events with 68,989 entries and 10,129 titles earned

227 Versatile Companion Dog titles awarded; 7,507 titles earned by AKC Canine Partners

5,680 AKC-approved licensed performance events with over 249,000 entries and 11,100 titles earned

2,442 titles awarded for accomplishments outside of the AKC competitive-event realms (AKC-associated events).

AKC Canine Good Citizen 42,988 CGC certifications, 10,067 S.T.A.R. Puppies, and 3,454 AKC Community Canines, for a total of 56,509 certifications.

AKC/Eukanuba National Championship 4,300 entries representing 179 AKC-recognized breeds; 1,276 Bred-by-Exhibitor entries; 95 Miscellaneous Class

dogs entered, representing 14 Miscellaneous breeds; 610 National Owner-Handled Series entries; 202 AKC National

Obedience Invitational entries; 598 AKC Agility Invitational entries; 124 conformation Junior Showmanship entries;

59 AKC National Juniors Agility Competition entries; 38 AKC National Juniors Obedience Competition entries.

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AMERICAN KENNEL CLUB

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FINANCIAL REPORTAMERICAN KENNEL CLUB 2014

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The following financial summaries have been extracted from the audited consolidated financial statements of the

American Kennel Club, Inc.

2014 was a successful, yet extremely challenging year for the organization. 2014’s consolidated total revenues of

$64.5 million was comparable to the $64.6 million in 2013. Dog and litter registrations of $27.0 were equal to 2013.

Total consolidated operating expenses of $58.8 million in 2014 were approximately $3.3 million (6%) higher than in

2013. This unfavorable variance was predominately due to increases in public relations, events and programs, along

with increases in payroll, rent and travel.

2013’s consolidated operating results yielded an operating surplus of $5.7 million vs. an operating surplus of

$9.1 million in the prior year. The consolidated gain on investments for 2014 totaled $1.2 million which was

significantly lower than 2013’s record breaking year of $14.3 million in 2013. The total unfunded status of pension

and post-retirement plans increased to $61.4 million from $37.6 million in the prior year.

The AKC Board’s Audit Committee meets regularly with senior management along with our external auditors to

ensure that we fulfill our responsibility for maintaining adequate accounting controls and the accuracy of the

consolidated financial statements.

A complete copy of the 2014 consolidated audited financial statements, including KPMG’s unqualified independent

auditors’ report, is available upon request.

Joseph V. Baffuto, Jr.CHIEF FINANCIAL OFFICER

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THE AMERICAN KENNEL CLUB, INCORPORATED

CONSOLIDATED BALANCE SHEETSDecember 31, 2014 and 2013 (In thousands)

Assets 2014 2013

Cash and cash equivalents $ 3,862 2,385

Accounts receivable, net of allowance for doubtful accounts

of $250 and $408 in 2014 and 2013, respectively 3,618 3,441

Investment receivable — 168

Investments 116,655 112,305

Prepaid expenses and other 4,536 5,622

Property and equipment, net 10,541 9,289

Total assets $ 139,212 133,210

Liabilities and Net Assets

Liabilities:

Accounts payable and accrued expenses $ 6,374 5,012

Deferred revenue 1,350 1,671

Deferred lease liability 2,540 3,527

Capital lease obligations 162 256

Postretirement benefit obligations other than pensions 27,945 22,844

Pension benefits obligation 33,456 14,827

Total liabilities 71,827 48,137

Contingencies

Net assets:

Unrestricted:

Operating 32,534 26,759

Investment in property and equipment 10,379 9,033

Board-designated for long-term purposes 83,827 84,780

Funded status of postretirement plans (61,401) (37,671)

Total unrestricted 65,339 82,901

Temporarily restricted 2,046 2,172

Total net assets 67,385 85,073

Total liabilities and net assets $ 139,212 133,210

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THE AMERICAN KENNEL CLUB, INCORPORATED

CONSOLIDATED STATEMENTS OF ACTIVITIESYears ended December 31, 2014 and 2013 (In thousands)

2014 2013

Changes in unrestricted net assets:Operating support and revenues:

Registration fees $ 27,054 27,069Recording and event fees 11,366 11,317Royalty and sponsorship income 3,956 6,530Fees and certified pedigrees 6,370 6,250Enrollment fees and microchip sales 4,981 5,026DNA and other product services 3,957 3,666Other income 3,538 2,300Publications 1,450 1,364Interest and dividends 1,208 536Net assets released from restrictions 698 621

Total operating support and revenues 64,578 64,679Operating expenses:

Payroll and related benefits 27,016 26,675Depreciation and amortization 5,774 5,914Professional and service fees 5,289 5,559Rent 3,315 2,493Communications and postage 2,651 2,672Forms and supplies 2,626 2,629Maintenance, rentals, and insurance 1,878 1,868Travel 1,923 1,728Public education 1,510 1,114Public relations, events, and programs 3,278 1,521Grants and contributions 1,264 1,141Printing, paper, and promotions 983 959Directors, delegates, and committees 822 654Other 512 582

Total operating expenses 58,841 55,509Increase in unrestricted net assets before nonoperating items 5,737 9,170

Realized and unrealized gain on investments 1,189 14,340Other (758) —Excess (Deficiency) of pension contribution over expense 754 (123)Net amount not yet recognized as a component of net periodic benefit cost (24,484) 24,603

(Decrease) increase in unrestricted net assets (17,562) 47,990Changes in temporarily restricted net assets:

Contributions and reclassification 572 635Net assets released from restrictions (698) (621)

(Decrease) increase in temporarily restricted net assets (126) 14(Decrease) increase in net assets (17,688) 48,004

Net assets at beginning of year 85,073 37,069Net assets at end of year $ 67,385 85,073

AMERICAN KENNEL CLUB

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OFFICERS AND STAFF

Board OfficersAlan KalterCHAIRMAN

Dr. J. Charles Garvin VICE CHAIRMAN

Executive OfficersDennis B. SprungPRESIDENT/CHIEF EXECUTIVE OFFICER

James P. CrowleyEXECUTIVE SECRETARY

Joseph V. Baffuto Jr.CHIEF FINANCIAL OFFICER

Vice PresidentsMichael BasoneTECHNOLOGY

Gina DiNardoASSISTANT EXECUTIVE SECRETARY

Mark DunnREGISTRATION & CUSTOMER DEVELOPMENT

Doug LjungrenSPORTS & EVENTS

Connie PearcyCHIEF INFORMATION OFFICER

Daphna StrausBUSINESS DEVELOPMENT

Christopher WalkerMARKETING AND COMMUNICATIONS

Assistant Vice PresidentsWilliam AdamsCOMPUTER OPERATIONS

Keith FrazierAUDIT AND CONTROL

Mari-Beth O’NeillSPORT SERVICES

Annual Report StaffBud BocconeEDITOR

Chris EspirituDESIGNER

Russell BiancaCREATIVE PRODUCTION DIRECTOR

Kate McCroary, David Woo, Robert YoungSTAFF PHOTOGRAPHERS

Cover art: “Terriers and Butterflies,” by Arthur Wardle, collection AKC Museum of the Dog, gift of Cynthia S. Wood

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