Pepperdine University Annual Report 2009

MESSAGE FROM THE CHAIR The somber subject matter of the 24-hour news cycle may be shaping the conversation in boardrooms, water coolers, and kitchen tables around the country, but not at Pepperdine. It’s not that our administrators, faculty, students, and staff are untouched by the harsh fiscal realities of our time; we have chosen not to focus on them alone.

“Soberness and restraint do not necessarily prevent the joyous expression of the human heart.”

—Winston Churchill, 1945

Our students, among the brightest in the world, show no symptoms of discouragement by the challenges they are inheriting. Instead, they seem to be stimulated by these demands and eager to develop solutions. Pepperdine provides the perfect environment for learning. By strengthening heart, soul, body, and mind, the University is preparing these students to develop real solutions to address very real problems.

Therefore, it has never been more important for the University to fortify and improve the educational framework that makes this possible. I commend President Benton and his leadership team for wisely, cautiously, yet shrewdly steering the University through very difficult waters over the past year. Their fiscal management of this crisis overshadows most institutions that now face a very uncertain future.

Through swift action, the leadership team stemmed losses quickly, managed cash flow by curtailing spending, and employed other cost-cutting measures, all while holding tuition down—no easy task.

I also commend and thank the faculty and staff for adapting to the challenges, often accepting a greater workload and taking on new responsibilities so that the student experience would not be diminished.

Pepperdine is built, tended to, and advanced by a community. That has never been so apparent as it was this last year.

With unemployment skyrocketing and the threat of inflation increasing, the end of the world financial crisis is not yet in sight. We anticipate fluctuations in enrollment levels of some of our programs as long as credit is tight, the job market is weak, and the state and federal budgets are overextended. However, the performance of the past year gives us confidence that the fiscal policies of this administration are sound and that the determination of the faculty and staff is sure. Through continued thoughtful management of our resources, Pepperdine is poised to achieve its most ambitious goals.

Most importantly, as you review this annual report, I hope you will enjoy learning more about the exciting and encouraging stories of our students and their accomplishments; for they are the inspiration to those of us who serve and support Pepperdine.

Ed Biggers

Chair, Board of Regents

www.pepperdine.edu/annualreports/2009

MESSAGE FROM THE PRESIDENT What a remarkable year 2009 has been. In fact, I haven’t experienced one quite like it since I’ve been at Pepperdine. Though it would be easy to fixate on the financial crisis that has gripped the nation and much of the world, it would be a mistake to race past all the goodness of the past year. The service, the scholarship, the many achievements flowing from our students, faculty, and alumni is astounding. By anyone’s measure, Pepperdine’s output is remarkable.

The story of Pepperdine’s successful year starts with a community that pulled together in the face of adversity. We learned to accomplish more with fewer resources. We reduced expenses significantly and redoubled our efforts to ensure that our current students could continue their education in spite of the economic hardship. One of our proudest moments came when we learned that of all eligible Seaver College undergraduate students, 96.6 percent enrolled to return.

The majority of our enrollment targets have been met and several have been exceeded. Demand for a Pepperdine education is as strong as ever. In fact, it has caught us a bit off guard. The record number of admitted students enrolled in our Malibu programs this last year strained our ability to house them all.

(It’s a challenge I am only too happy to accept.)

Though I suspect we have not seen the end of this crisis, I am confident that the measures we have taken have positioned us well to fend off the threats of the

next surge of this financial storm, if indeed it comes.

Pepperdine is prepared to venture far into the future because of the difficult decisions and the multitude of sacrifices that have been made this past year.

In the meantime, we have seen a surge of activity on and off campus. The Mullin Town Square project in Malibu was completed, adding new state-of-theart classrooms and beautiful lecture space. More importantly, it has added a real sense of community to the heart of our campus.

Our alumni continue to be active throughout the world as entrepreneurs, business leaders, and community volunteers. The Waves of Service initiative was launched to support and recognize the good that Pepperdine Waves are doing worldwide. Our alumni are networking with each other and are mentoring and hiring our students like never before.

I hope you will find this annual report to be an honest appraisal of the past fiscal year. The challenges we faced and met are clearly presented, as are the measures we have taken to defend against other financial threats. But remember, the facts and figures presented in this report are only part of the story. The truest Pepperdine story emerges through the stories of students, faculty, and alumni. Let me encourage you to read and savor every word. Don’t race past the good that is being done around you.

Andy Benton President

“DON’T RACE PAST THE GOODNESS.”

OUR STORIES

WE ARE NOT IN A POSITION IN WHICH WE HAVE NOTHING TO WORK WITH. WE ALREADY HAVE CAPACITIES, TALENTS, DIRECTION, MISSIONS, CALLINGS.

Moving Beyond Office Walls The Return Journey Morgan Beach Explores a Way Home for the Internally Displaced of Azerbaijan

The Social Justice Collaborative Offers Students Lessons in Advocacy and Understanding

—Abraham Maslow

This year we celebrate members of the Pepperdine community who have embraced a higher calling in their lives.

To read more of their stories and watch their videos: www.pepperdine.edu/annualreports/2009

“When I think of home, I think of family.

But I will never have that back. It has all been destroyed,” says “S.,” an internally displaced Azerbaijani forced from her home in the contested Nagorno-Karabakh region 15 years ago.

Master of public policy student Morgan Beach is working to shine a spotlight on the precarious condition of Azerbaijani IDPs like S., and the stakes involved in finding them a permanent home.

“I was meant to work with people who needed their stories to be heard, who couldn’t do it themselves.”

Chris Hoff enrolled in the marriage and family therapy (MFT) program at the Graduate School of Education and Psychology envisioning a future in private practice, but working with the Social Justice Collaborative has changed his perspective.

“My idea of what an MFT can be and do has expanded,” he says. “My responsibility goes beyond the office walls—to advocating for the marginalized and underserved in my community.”

The student group promotes social responsibility and dialogue related to multicultural issues, social inequalities, and working in underserved communities. “It’s about being a curious observer and being there to listen, because everyone has a story, and we all want to tell it.”

www.pepperdine.edu/annualreports/2009

The Campaign for Sisterhood Alumnae Address Female Adolescent Violence

The Pursuit of Reconciliation Professor Roger Alford Spurs Dialogue on Law and Religion at the School of Law

Aaryn Pratt Has a Mission: A Foster-Free Future

Lauren Parsekian (‘09) and Molly Stroud (‘09) have taken to America’s schools to fight “girlagainst-girl” crime: manipulation, bullying, gossiping, and aggression.

Aaryn Pratt (MS ‘05) has achieved professional success, is a proud mother of two, and actively participates in her community. You’d never suspect that she spent a tumultuous childhood in foster care.

Determined to do something to help other foster children break the cycle, Pratt won a $50,000 grant to implement an e-learning platform to train volunteers to become Court Appointed Special Advocates (CASA). CASA advocates are sworn officers of the court, appointed to investigate and report on the best interests of foster children.

Pratt hopes the program will touch the lives of thousands of foster children. “I will always be working toward a foster-free future; it’s a lifelong commitment.”

As founders of the nonprofit Kind Campaign, they have traveled to schools across the country to promote positive relationships between girls and combat the breakdown of sisterhood.

Says Stroud, “Girls will not always be best friends; that is unrealistic. But we’re showing them the value of understanding and respect.”

“In discussing the relationship between Jews, Christians, and Muslims, we all know the issues that divide us, but there are many things that unite us,” says Roger P. Alford, professor of law and director of the Diane and Guilford Glazer Institute for Jewish Studies at Pepperdine.

These unifying factors take on critical importance in the study of religion and law, Alford’s area of expertise. With a master of divinity and juris doctorate, Alford had built a successful legal career and acquired a wealth of experience regarding world religions by the time he joined the Pepperdine law faculty in 2000.

“At Pepperdine, we are serious about our Christian tradition, and that affords us the opportunity to be serious about the faith of others; to respect and honor other traditions in a spirit of civility and good faith.”

THE YEAR IN REVIEW In a year at Pepperdine University, each moment highlights an element of what makes this place and this community so special: academic excellence, athletic achievement, meaningful service, world-class opportunities, and more. Here we pause to look back at a few of the memorable things that happened in 2009.

Justice Thomas Elizabeth Lowery

For the second consecutive year, five students earned prestigious

Rodney Honeycutt Justice O’Connor

Fulbright Awards. The winners Kathryn Karlic

Justice Alito

The School of Law continued its long

tradition of hosting U.S. Supreme Court justices by hosting four of them— Roberts, Alito, O’Connor, and Thomas—in one academic year.

The Dean’s Executive Leadership Series at the Graziadio School of Business and Management featured a stellar all-female lineup, including General Motors vice president Elizabeth Lowery and Kathryn Karlic of GE Asset Management.

Scholar and author

Victor Davis Hanson served Ed Larson

Biologist Rodney Honeycutt and Pulitzer Prize-winner Ed Larson were named “University Professors,” Pepperdine’s highest distinction.

as the Spring 2009 William E. Simon Distinguished Visiting Professor at the School of Public Policy, exploring such topics as presidential rhetoric, policy changes, and the media at the podium and in the classroom.

Pepperdine University was named the No. 2 producer of Peace

Corps volunteers among all small colleges in California, and produced 18 Teach for America participants among its graduates.

were all women, and 2009 graduates of Seaver College. From left: liberal arts and education major Julie Presant; Spanish and German major Leslie Reed; English writing and rhetoric major Lindsey Banister; English literature major Lillian Kwok; and biology and biochemistry major Anjel Helms.

www.pepperdine.edu/annualreports/2009

The Boone Center for the Family hosted its first Family of Faith Network Conference, providing an opportunity to share ideas, applications, and strategies conducive to promoting healthy relationships, as well as a setting for the personal renewal and reflection that allows relationships to prosper.

Pepperdine athletics was in The School of Law’s

Straus Institute for Dispute Resolution was

ranked the No. 1 program

by U.S. News & World Report for the fifth consecutive year.

the spotlight across the conference and country, producing 10 AllAmerican athletes and 44 All-Conference athletes.

Seven teams advanced beyond the regular season into NCAA competition, led by No. 2-ranked men’s water polo.

The second triennial

Parkening International Guitar Competition

brought classical guitarists from around the world—including winner Emanuele Buono of Italy—to perform in Smothers Theatre.

On the heels of Pepperdine’s Great Communion service, author Leonard Allen presented “The Bicentennial of an American Christian Classic” as the featured lecturer of the 30th annual William M. Green Distinguished Christian Scholar Lecture Program.

The series brings to Pepperdine’s campus outstanding scholars from Churches of Christ.

To learn about these highlights and more, watch the Year in Review video: www.pepperdine.edu/annualreports/2009

Pepperdine celebrated the official opening of the University’s newest piece of property: 2011

Pennsylvania Avenue. Located just

blocks from the White House, the facility is the new, permanent home for the Washington, D.C. Internship Program.

MESSAGE FROM THE CHIEF FINANCIAL OFFICER

LAST YEAR’S REPORT NOTED THAT PEPPERDINE UNIVERSITY HAD BEEN THROUGH A CHALLENGING YEAR. We believed at that time that Pepperdine would face even more obstacles in fiscal 2009 as a result of the continuing economic downturn.

Unfortunately our prediction was correct. Fiscal 2009 proved to be one of the most fiscally challenging years that the University has faced in its history. While the difficulties were indeed great, the blessings of God on this institution and the resolve of our community were more than sufficient to overcome any economic hindrance.

It’s a fairly simple exercise to examine the University’s financial statements and quickly ascertain that we suffered a great financial loss in fiscal 2009.

Principally as a result of investment declines, the University’s net assets decreased nearly 17 percent, or $169 million, to total $853 million at fiscal year end. We were not alone in experiencing losses of this significance.

In the midst of the recent economic downturn, scores of colleges and universities suffered investment losses of such magnitude that some of this country’s most well-respected and best known institutions were forced to make immediate and potentially devastating cuts. Many of these institutions relied on endowment support to fund 30 percent or more of their operating budget. Fortunately this was not the case for Pepperdine University.

Endowment support totaled $31 million for fiscal 2009, or approximately 12 percent of total expenses. Since the University’s endowment provides a comparatively low level of support for operations, declines in endowment value will not have as dramatic an impact on the University as other institutions that rely more heavily on endowment support to fund their operating activities. This is a time when comparatively high dependence on student tuition revenues actually provides the University with a competitive advantage. As such, we are indeed very fortunate to enjoy continued strong demand for the vast majority of our academic offerings.

PEPPERDINE UNIVERSITY UNIVERSITY Consolidated PEPPERDINE Statements of Financial Position Consolidated Statements of Financial At July 31, 2009 and 2008 Position At July 31, 2009 and 2008 (In thousands) (In thousands) 2008

2009 2009

ASSETS

ASSETS

Cash and cash equivalents .............................................................

receivables, less allowance for Cash and cashStudent equivalents ............................................................. doubtful accounts of $1,518 Student receivables, less allowance forand $1,012, respectively...............

Other accounts receivable .............................................................. doubtful accounts of $1,518 and $1,012, respectively...............

Student loans, less allowance for Other accounts loan receivable losses of.............................................................. $1,697 and $2,020, respectively .......................... receivable, Student loans,Contributions less allowance for net ......................................................... expenses, inventories and other assets .............................. loan losses Prepaid of $1,697 and $2,020, respectively ..........................

Investments ....................................................................................

ContributionsAssets receivable, net ......................................................... held as trustee or agent .......................................................

Prepaid expenses, inventories and other assets ..............................

Property, facilities and equipment, net...........................................

Total assets ......................................................................

Investments ....................................................................................

Assets held as trustee or agent .......................................................

LIABILITIES AND NET ASSETS Property, facilities and equipment, net...........................................

TotalLiabilities: assets ......................................................................

Accounts payable and accrued liabilities ...................................

Accrued salaries and wages .......................................................

LIABILITIES AND NET ASSETS Student deposits, advance payments and

$

$

Total liabilities and net assets ..........................................

44,650

$

3,617 5,791

3,617

39,193

$

4,070 5,730

39,193 4,070

5,791 27,244 25,853 5,717 27,244 658,995 25,853 104,987 5,717 334,502 $ 1,211,356 658,995

28,005 5,730 24,762 6,633 28,005 813,148 24,762 112,719 315,277 6,633 $ 1,349,537813,148

$

$

104,987 334,502 $ 1,211,356

deferred revenue.....................................................................

Liabilities: US government-funded student loans ........................................

Trust and obligations .....................................................

Accounts payable andagency accrued liabilities ...................................

Long-term obligations................................................................

Accrued salaries and wages .......................................................

Total liabilities.................................................................

Student deposits, advance payments and assets: deferred Net revenue.....................................................................

Unrestricted................................................................................

US government-funded student loans ........................................

Temporarily restricted................................................................

Trust and agency obligations .....................................................

Permanently restricted................................................................

Long-term obligations................................................................

Total net assets.................................................................

Total liabilities.................................................................

44,650

2008

$

36,703 3,067

9,859 14,126 67,794 36,703 226,734 3,067 358,283

9,859

358,283

22,737 2,985

10,136 13,838 $69,239 22,737 209,000 2,985 327,935

10,136

485,358 14,126 104,701 67,794 263,014 226,734 853,073 $ 1,211,356

112,719 315,277 $ 1,349,537

664,792 13,838 75,442 69,239 281,368 209,000 1,021,602

327,935

$ 1,349,537

Net assets: Unrestricted................................................................................

Temporarily restricted................................................................

Permanently restricted................................................................

Total net assets.................................................................

485,358 104,701 263,014 853,073

664,792 75,442 281,368 1,021,602

Total liabilities and net assets ..........................................

$ 1,211,356

$ 1,349,537

See accompanying notes to consolidated financial statements.

2

See accompanying notes to consolidated financial statements.

www.pepperdine.edu/annualreports/2009 2

PEPPERDINE UNIVERSITY Consolidated Statement of Activities For the Year Ended July 31, 2009 (In thousands)

REVENUES

Unrestricted

Student tuition and fees......................................... $ Less student aid................................................

Net student tuition and fees .........................

244,774 (69,755) 175,019

Room and board....................................................

Private gifts and grants .........................................

Endowment support ..............................................

Government grants................................................

Sales and services .................................................

Other revenue .......................................................

Net assets released from restriction ......................

Total revenues .............................................

30,505 10,435 30,103 3,500 6,760 4,905 2,329 263,556

Temporarily Restricted $

– – –

Permanently Restricted $

– 2,794 183 – – (9) (2,329) 639

– – –

Total $

244,774 (69,755) 175,019

– 7,320 485 – – 178 – 7,983

30,505 20,549 30,771 3,500 6,760 5,074 – 272,178

– – – – – – – – –

– – – – – – – – –

81,248 46,762 44,923 14,383 19,740 49,897 1,833 7,243 266,029

639

7,983

6,149

(4,378)

(7,960)

EXPENSES Instruction and research ........................................

Academic support .................................................

Student services ....................................................

Public service........................................................

Auxiliary enterprises.............................................

Management and general ......................................

Membership development.....................................

Fundraising ...........................................................

Total expenses.............................................

Change in net assets before nonoperating revenues and expenses............................

81,248 46,762 44,923 14,383 19,740 49,897 1,833 7,243 266,029 (2,473)

NONOPERATING REVENUES AND EXPENSES Adjustment of actuarial liability ...........................

Investment income: Dividends .........................................................

Interest .............................................................

Other ................................................................

Net realized and unrealized losses from investments ......................................................

Appropriations from endowment ..........................

Other Total nonoperating revenues and expenses...........................................

Change in net assets before cumulative effect of change in accounting principle ....................

Cumulative effect of change in accounting principle ....................................

Change in net assets ....................................

Net assets at beginning of year....................

Net assets at end of year .............................. $

–

(3,582)

6,255 2,132 6,116

15 – –

14 8 –

6,284 2,140 6,116

(126,809) (26,832) (3,884)

(58) (107) (1,587)

(23,086) – 1,105

(149,953) (26,939) (4,366)

(143,022)

(5,319)

(26,337)

(174,678)

(145,495)

(4,680)

(18,354)

(168,529)

(33,939) (179,434)

33,939 29,259

– (18,354)

– (168,529)

664,792 485,358

$

75,442 104,701

$

281,368 263,014

See accompanying notes to consolidated financial statements.

3

$

1,021,602 853,073

During fiscal 2009, the University’s endowment funds declined $143 million, or 21 percent from one year ago, to total $530 million. Despite the decline in endowment value, the University’s endowment payout is projected to increase in fiscal 2010 as the University distributes endowment support based on a five-year moving average of endowment value multiplied by a 5 percent payout rate. While this payout methodology smooths out changes in the level of endowment support, without a significant recovery in endowment values in the near term, the overall level of endowment support is expected to decline in future years.

Despite suffering significant investment losses in fiscal 2009, Pepperdine University remains strong. In fact, the University is positioned to emerge from the current economic crisis a stronger and more resilient institution.

We reduced annual expenses by over $12 million, and have set these funds into reserves that can be used to shore up declines in future endowment support, fund additional student aid, make strategic investments in scholarship and instruction, or reduce student enrollments in future years.

We’re also examining opportunities to reduce expenses further to provide even more financial flexibility. We’ve improved our liquidity position through positive operating results and a modest increase in the outstanding balance of long-term debt. We continued to invest in property, plant, and equipment, ensuring that our students’ academic experience takes place in the highest quality facilities.

Investments in facilities have been funded through the use of existing reserve funds and gifts from friends and alumni. Significant renovations to many of the buildings and the Mullin Town Square on the lower campus in Malibu have been completed. These actions, among others, have been taken to provide an increased level of operating flexibility in the wake of possible continued economic turmoil.

The University’s long-term obligations increased modestly from one year ago and now total $227 million. During fiscal 2009, we issued $50 million in taxable fixed-rate debt that was used to retire all of the University’s variable-rate debt, completely eliminating exposure to potential interest-rate increases and the related liquidity constraints that such instruments require.

The offering generated unrestricted net additional liquidity of more than $17 million. The University’s long-term debt-to-total capitalization ratio totaled approximately 21 percent at the end of fiscal 2009.

FINANCIAL STATEMENT FOR 2009 Today approximately 7,750 students are enrolled at the University’s five colleges and schools. Maintaining an appropriate level of student enrollment continues to be of principal importance since approximately 76 percent of the University’s operating revenues come directly from tuition.

The University’s results from operations were positive overall for fiscal 2009, even though the stresses caused by financial market turmoil are readily apparent. Net tuition revenues increased $9 million to total $175 million, as a result of both increased tuition rates and levels of student enrollment.

The economic slowdown has had a negative impact on private gift and grant revenues, which declined 17 percent from fiscal 2008 levels and totaled $21 million

for fiscal 2009. It is vitally important to the future of the University that we sustain a higher level of private gift and grant revenues to both restore the value of our endowment and support current operations. We need the support of our friends and alumni at this time more than ever, since the need for additional student financial aid is likely to increase.

Management and general costs have declined from the prior year as we sought to reduce controllable costs in response to the economic crisis. Since every dollar expended by the University is funded principally by dollars provided from student-dependent sources, we are keenly aware that we must make every possible effort to reduce these costs wherever possible.

Even in the most difficult of times, God continues to bless this special place and the people who dedicate their lives to the service of our students. He has and we are confident that he will carry us securely into the future.

Paul B. Lasiter

Chief Financial Officer

(in 000’s)

(in 000’s)

(in 000’s) (in 000’s) (in 000’s)

(in 000’s) (in 000’s)

1,500,000

1,200,000

800,000 1,500,000 1,200,000

800,000 1,200,000

1,000,000

700,000 1,000,000 1,200,000 600,000

700,000 1,000,000 600,000

1,200,000 900,000

800,000

800,000 500,000 900,000

600,000

600,000

600,000 400,000 300,000

200,000 2004 2005 2006 2004 2007 2005 2008 2006 2009 2007 2008 2009

0

0

total assetsnet assets

400,000

600,000 300,000 400,000 200,000 300,000 200,000 100,000

2004 2005 2006 20072009 2008 2009 2004 2005 2007 2008 2009 20042006 2005 2006 2007 2008

0

0

0

endowment net total assets assets assets

500,000

800,000

400,000 600,000 300,000

400,000

200,000 100,000 0

200,000 2004 20052004 20062005 20072006 20082007 20092008 2009

0

endowment net assets assets

www.pepperdine.edu/annualreports/2009

BOARD OF REGENTS W. L. Fletcher III

Travis E. Reed

President (Retired) Hughes Missile Group

Co-Owner Park Centre Properties, LLC

President Reed Investment Corporation

James R. Porter, Vice Chair

Matthew K. Fong

Carol Richards

Principal Porter Capital Partners

President Strategic Advisory Group

B. Joseph Rokus

Susan F. Rice, Secretary

Linda M. Gage

Principal SFR Consulting

Chair Packaging Plus

Terry M. Giles

Charles B. Runnels

President and Owner Giles Enterprises

Chancellor Emeritus Pepperdine University

Jerve M. Jones

Michelle Hiepler

Rosa Mercado Spivey

Rosemary Raitt

Partner Law Offices of Hiepler & Hiepler

Physician

Richard M. Scaife Flora Laney Thornton

Glen A. Holden

William W. Stevens Chair of the Board (Retired) Triad Systems Corporation

William R. Waugh J. McDonald Williams

Stephen M. Stewart

Helen M. Young

Frederick L. Ricker, Assistant Secretary Vice President, Military Systems Space Systems Division Northrop Grumman Aerospace Systems

William S. Banowsky President Emeritus Pepperdine University

United States Ambassador (Retired) Managing Partner, The Holden Company

Andrew K. Benton

Gail E. Hopkins

President Pepperdine University

Orthopaedic Surgeon Hinsdale Orthopaedic Associates

Sheila K. Bost

John D. Katch

President Stewart Brothers Drilling Company

Augustus Tagliaferri

Robert R. Dockson Hari N. Harilela Jerry E. Hudson Robert G. Jackson Arthur G. Linkletter

UNIVERSITY BOARD

Thomas E. Higgins Robert W. P. Holstrom William T. Huston M. Lawrence Lallande Carl J. Lambert Stephen Lehman Deanne Lewis Ian R. Linde Jim Long Seiji Masuda Gregory R. McClintock Warren Merrill Carl Minton E. Chadwick Mooney Velma V. Morrison William S. Mortensen Kenneth Mosbey

William Ahmanson, Jr.

Aaron Norris

Thomas J. Trimble

Robert Barbera

Stephen E. Olson

Thomas J. Barrack, Jr.

John D. Ratzenberger

Nabil Barsoum

Kelly Roberts

William W. Beazley

Charles B. Runnels

Paul F. Bennett

Paul Saber

Andrew K. Benton

Margaret Sheppard

A. Ronald Berryman

Eric Small Richard L. Stack

Charles L. Branch

President and Owner WorldTravelService

Sr. Vice President/General Counsel and Corporate Secretary (Retired) Southwest Gas Corporation

Eff W. Martin

Robert L. Walker

Managing Director (Retired) Goldman Sachs & Company

Senior Executive for Development Texas A&M University Hagler Center

Virginia B. Braun

Lodwrick M. Cook

Bruce Herschensohn

Pat Boone, Chair

District Manager (Retired) Southern California Edison Company

Professor of Neurosurgery Wake Forest University Baptist Medical Center

Joe R. Barnett

Mary Heckmann

Chair and President Financial Structures, Inc.

Licensed Marriage and Family Therapist Private Practice Certified Family Life Educator

Dennis Lewis

LIFE REGENTS

Michael T. Okabayashi

Marylyn M. Warren

Circuit Court Judge United States Court of Appeals for the D.C. Circuit

Partner Ernst & Young

Senior Vice President (Retired) eHarmony.com

Viggo Butler Rod Campbell

William G. Stephens

Danny Phillips

Edward V. Yang

Robert M. Davidson

Dorothy B. Straus

Jose A. Collazo

Investments/Ranching

Edmond R. Davis

Terralynn Walters Swift

Vice Chair and President Form I-9 Compliance, LLC

Timothy C. Phillips

Chair and President U.S. and Europe Business Group iSoftstone, Inc.

K. Duane Denney

Charles H. Taylor

Robert E. “Bob” Dudley

George Thomas

Maureen Duffy-Lewis

Robert A. Virtue

Russell L. Ray, Jr.

Mark W. Dundee

Ellen Weitman

Executive (Retired) Airline and Aerospace Companies

David G. Elmore

Larry L. Westfall

Hank Frazee

Jeremy N. White

G. Louis Graziadio III

Gary L. Wilcox

Bart M. Hackley, Jr.

Griffith J. Williams

Janice R. Brown

Jerry S. Cox President Cox & Perkins Exploration, Inc.

Chief Executive Officer Phillips and Company

PA0909053

Edwin Biggers, Chair

as a Christian university Pepperdine affirms: that God is that God is revealed uniquely in Christ that the educational process may not, with impunity, be divorced from the divine process t hat the student, as a person of infinite dignity, is the heart of the educational enterprise Pepperdine University is a Christian university committed to the highest standards of academic excellence and Christian values, where students are strengthened for lives of purpose,

that the quality of student life is a valid concern of the University that truth, having nothing to fear from investigation, should be pursued relentlessly in every discipline

service, and leadership. that spiritual commitment, tolerating no excuse for mediocrity, demands the highest standards of academic excellence that freedom, whether spiritual, intellectual, or economic, is indivisible that knowledge calls, ultimately, for a life of service

Pepperdine is affiliated with Churches of Christ, of which the University’s founder, George Pepperdine, was a lifelong member.

Š All rights reserved, 2009 by Pepperdine University 24255 Pacific Coast Highway Malibu, California 90263 310.506.4000 WWW.PEPPERDINE.EDU