Michael Lasley

W H E R E t h e R I V E R F L O W S Annual Report 2006

THE MISSION OF PEPPERDINE UNIVERSITYPepperdine University is a Christian university committed to the highest standards of academic excellence and Christian values, where students are strengthened for lives of purpose, service, and leadership.

P e p p e r d i n e U n i v e r s i t y A n n u a l R e p o r t 2 0 0 6

Where the river flows there is life. —Ezekiel 47:9

W H E R E t H E R I V E R F L o W s

RU n s E E n B E A U t y E d w i n L . B i g g e r s , C h a i r, B o a rd o f R e g e n t s

arely can you stroll Pepperdine’s manicured campus in Malibu and not encounter sightseers taking pictures from various stunning vantage points. In fact, a widely read college guide named Pepperdine the “Most Beautiful College Campus in America” as voted by students across the country. Yet, to consider only this distinction is to miss what lies beneath the beauty of this place.

As chair of the Board of Regents, it has been my privilege to witness the remarkable achievements of our undergraduates at Seaver College. I have gained an insight into their character. I know of their acts of kindness, their scholarship, their exhibition of good sportsmanship, and their service to humanity. Only when you take in these heart-fi lled endeavors do you glimpse the true beauty of Pepperdine University.

Likewise, I have seen impressive work from our graduate programs. Over half of our student body pursues career growth and professional studies at the School of Law, the Graziadio School of Business and Management, the Graduate School of Education and Psychology (GSEP), and the School of Public Policy. Guiding intellect by faith, our talented professors and graduate students enrich their careers and their lives by dedicating themselves to dispute resolution programs within the School of Law, the Urban Initiative project at GSEP, or the service component of the Graziadio School’s MBA program. And that, too, is beautiful.

Pepperdine’s infl uence extends far beyond Southern California as students and alumni serve the world community in profound and selfl ess ways. Whether, as you will read in this report, in South Africa, Honduras, the Republic of Georgia, or Iran, you will fi nd students and faculty blending creativity, competency, and knowledge, with love for their fellow man. And it, too, is beautiful.

I am proud to be associated with a university that remains faithful to George Pepperdine’s vision. He believed that education did not simply exist for itself and said, “Education should include the right outlook on life, a realization of our responsibility to society, to our country, and to God…that young people be taught that their place in the world is to serve and to give.”

President Benton and his administrative team are deeply committed to that idea. Th ey understand that knowledge brings freedom; so, they work tirelessly to make certain that the highest standards of academic excellence are fully rendered in the classroom. Th ey also believe that with knowledge comes opportunity and responsibility. As stewards of Mr. Pepperdine’s vision and the resources provided by Pepperdine’s two benefactors—Blanche Seaver and George L. Graziadio—the administrative team seeks to use Pepperdine’s resources to improve the student experience today while building the university of tomorrow.

As you review this year’s annual report, I hope you will enjoy the beautiful pictures of our University campuses; but more importantly, I hope you will see the real beauty beyond our ocean vistas and acclaimed facilities. For I believe the brilliant light pouring forth from our community of scholars, students, staff , friends, and alumni is more spectacular than anything nature can off er on its own.

Edwin L. Biggers

Andrew K. Benton

he names of many of the world’s great rivers are familiar to us: Amazon, Nile, Zambezi, Th ames, and of course, our own mighty Mississippi. Th ese awesome forces of nature, stretching for many thousands of miles, are intriguing for their beauty and power, and they have played a pivotal role in human aff airs throughout history.

Th eir impact on the world has been signifi cant as they have gathered and harnessed their abundant gifts for a greater purpose—from generating electricity and irrigating farmlands to creating industries and providing millions with clean and dependable sources of drinking water. For centuries, commerce has depended upon these liquid superhighways to transport goods, raw materials, and food products; and along their fertile banks, vibrant cities have emerged providing housing and jobs to large populations.

Like the world’s great rivers, Pepperdine has been fed by many sources over its short 70-year history. Students, faculty members, and friends, drawn by the bold mission of our founder—George Pepperdine—have off ered their talents and professionalism, their bold ambitions and dreams, and have invested themselves in the formation of this University.

Pepperdine has gathered and harnessed these talents and gifts for a greater good—to bring positive change to a suff ering and needy world. We are already witnessing the results of this lofty ambition. While many members of our University family serve in quiet, understated ways in everyday life, others have made dramatic contributions to their communities and the world at large. You will read about some of their inspiring stories in this report.

You will also be introduced to three members of our community whose thoughtful essays represent very personal views of this University and its future. I believe you will see how each embodies that which is distinctive about Pepperdine; for each one, though personally formed by diff erent sources, shares a strong and unifi ed perspective of what Pepperdine is and what it is becoming.

Finally, you will be encouraged to learn that our enrollment continues to rise to historic levels while world-class scholars and teachers have come to help shape our very exciting future. Th ey sense, as I do, that the currents fl owing through Pepperdine are growing stronger and that the reach of the University is broadening. Th ey see great promise in the Pepperdine mission which acknowledges that academic excellence is inextricably linked to the pursuit of truth. While committed to the stringent study of science, history, the arts, literature, business, education, and the law, our scholars are free to consider and even imagine the possibilities hidden within the universe’s greatest truths and virtues.

As we consider the accomplishments of the past year and our future, let me close by thanking you for your expressed interest in Pepperdine University. Your gifts of love, encouragement, and fi nancial support have strengthened our University and now fl ow through the halls, classrooms, and lives of our students who are passing those gifts along to the betterment of our community and world.

TW H E R E t h e R I V E R F L o W s A n d re w K . B e n t o n , P re s i d e n t


A M e s s a g e f ro m D e a n J a m e s R . W i l b u r n

F o R s U C H A t I M E A s t H I s

f the past is prologue, then Pepperdine’s history, as it

anticipates its 75th anniversary just fi ve years from now,

demonstrates a rare understanding that destiny does not

anoint institutions that pursue greatness by imitating

others. To imitate is to choose the past, to be warmed

tepidly by the dying embers of someone else’s passion.

Greatness seeks out those who can gather up the deep

and unique spiritual resources of their own special

heritage, focus them through the prism of their particular

history, and cast their white-hot energy powerfully and in

unexpected ways against the unprecedented forces with

which their own age challenges them.

f the past is prologue, then Pepperdine’s history, as it

anticipates its 75I


From the beginning Pepperdine has chosen its own way, often using times of mutating crisis to make quantum advances. George Pepperdine, while yet a young man, gave away a substantial portion of his wealth to found a college just as the industrialized world was paralyzed by the most devastating depression in history. Two decades later Norvel Young left a successful ministry in his brotherhood’s largest congregation to become president of Pepperdine College. He did so against the counsel of close friends who were concerned that the little college in South Central Los Angeles was too troubled—both by finances and a conflicted mission—to survive.

There were other crises, but rising from each one Pepperdine emerged stronger than before. When the National Guard bivouacked on campus during the Watts riots of 1965, instead of closing its doors as some sophisticated business consultants might have counseled, Pepperdine chose to announce that it was moving to university status and launching a new graduate program for senior executives that would soon come to be imitated nationally. It added an outstanding law school and graduate programs in education and psychology, overseas campuses, and a new campus in Malibu, proclaimed eventually by others to be the most beautiful campus in America.

In retrospect, the little college had assets that others could not see. Through chaotic times it held to its Christian roots. And perhaps as significant as its steadfast faith, its chief executives have consistently been “homegrown,” nurtured in its unique atmosphere with a shared brotherhood experience that provided a kind of “corporate culture” that other organizations had reason to envy. President Benton, in his inaugural address, thoughtfully encapsulated how circumstances seemed to have perfectly matched each chapter of the school’s history with a timely style of leadership: an early foundation and maturity under Batsell Baxter and Hugh Tiner, rededication and new dreams with Norvel Young and Bill Banowsky, seeking excellence “with ageless convictions intact” under Howard White and David Davenport.

But beyond these ingredients, there has also been a boldness, with calculated risks that often led to destinations far loftier than what had been dreamed when the risks were taken. Goethe observed that when someone commits unreservedly, “Providence moves too.” All sorts of unexpected assistance appears that would never have been available before the bold course was chosen.

Among the things that Providence brought to Pepperdine in response to its boldness was a host of new friends. Typical of those whose names now adorn the schools and their buildings was Fritz Huntsinger, a German immigrant who founded an offshore drilling company in Ventura. When he was asked by Norvel Young and Bill Banowsky for a million-dollar gift, he replied that they were thinking too small and suggested that they ask him for two million instead. Bold plans have power in them.

Recently, a nation that has loved its universities and supported them generously has become convinced that higher education has tragically lost its way. Demands for an alternative have arisen from the cynical trivialization of sacred and permanent things, the making of all choices morally equivalent, the dilution of purpose by faithless utopian theory divorced from practice, and the substitution of cafeteria-style curricular design where students are left to their own devices in place of a prescribed conversation with the great books and holy scriptures. There is a growing hunger in the academic world for the brand of bold leadership that Pepperdine has demonstrated before in times of crisis. It is a world where Pepperdine has been fortunately situated—perhaps chosen—to lead.

Ours is a troubled world, but commitments made unreservedly have a way of providing a high ground that attracts Providential lightning as it were. There, purpose becomes incarnate in what the Greek New Testament calls kairos, “a fullness of time”—choosing a sacred Sinai or Golgotha, a cast-out remnant of homeless ones, a child in a manger, perhaps a university—to discharge energy to earth, for a new beginning with a new leader, matched to the times.

Sensing that Pepperdine faces an awesome choice of whether or not to surrender to such a larger purpose in this troubled time invites thoughts of Mordecai’s arresting question to Esther when her fellow Jews were in danger of extinction in Persia:

“ Who knows whether you have come to the kingdom for such a time as this?” (Esther 4:14)

Greatness seeks out those who

can gather up the deep and

unique spiritual resources of

their own special heritage…

Dean James Wilburn is the founding and current dean of the School of Public Policy. During his 35 years with Pepperdine, he has served as vice president of University Affairs, as provost, and chief operating officer.



D o n a l d M a rs h a l l

t H E R I V E R R U n s d E E P

fter more than 30 years teaching in large, public, research

universities, I came to Pepperdine in 2003 to teach in the

Great Books Program. While I don’t have the perspective

of those with many years of experience here, coming

from a very diff erent environment highlights a number

of distinctive features of Pepperdine by contrast. In my

view, many things set Pepperdine apart from what I have

known. Here, I present four key features that I believe are

foundational to Pepperdine’s past and critical to its future.

fter more than 30 years teaching in large, public, research

universities, I came to Pepperdine in 2003 to teach in the

A


First, I am struck by Pepperdine’s enduring commitment to the liberal arts. Research universities play a vital role in advancing knowledge and improving lives, but they have largely abandoned the liberal arts for a culture of specialized, advanced research. Th roughout my career, my academic and intellectual conscience kept feeling the tug of the liberal arts tradition. Research specializes in order to reduce complex issues to solvable problems. But liberal arts keep a wider context in view, and many questions about the meaning and purpose of our lives and existence can’t be made narrow and solvable. It is the asking of the questions, now and throughout our lives, that is essential to our humanity. Advanced research rightly focuses on the new, but it risks ignoring the fact that as individuals and as a culture, we did not create ourselves and we are not suffi cient to ourselves. Our heritage is our greatest resource as we move into the future, a source not just of answers, but of questions and of a perspective nothing else can provide.

Second is the centrality of the Great Books Program to the liberal arts mission of the University. As a senior scholar at a research university, I would have been permitted to develop a Great Books course, but it would have run against the grain of the institution and been merely my idiosyncratic preference. At Pepperdine, liberal arts are at the heart of the University, and Great Books is at the heart of the liberal arts. In our courses, we conduct a shared inquiry into the challenging ideas expressed in major works of the Western tradition—and with the addition of a new course, of the Asian tradition as well. “Shared inquiry” means that the instructor does not approach these texts as an expert off ering students authoritative explanations. Instead, the instructor leads a structured discussion in which students working together form interpretations, explore and test ideas, and clarify their thinking. Our teachers—the instructor’s as much as the students’—are Homer, Plato, Augustine, Dante, Shakespeare, Jane Austen, Nietzsche, Simone Weil, and their peers. At Pepperdine, the Great Books Program is not my eccentric personal hobby, but rather a gathering of colleagues and students with whom I can share this commitment to liberal study. To be a part of the community of Great Books and through it to contribute to Pepperdine’s mission gives our individual work dignity and signifi cance.

Th ird, Pepperdine puts the right emphasis on teaching. Th e emphasis on advanced graduate training at research universities entirely fi ts their mission, but the result is that undergraduates, especially lower-division undergraduates, are left in the lurch. Fitful eff orts to redress the balance only underscore the problem. My increasing interest in getting back to undergraduates and especially to the foundational early years of college meshed well with Pepperdine’s emphasis on the student as the center of the educational enterprise. Th is is not to open a gap between research and teaching. Good teaching leads students toward the most penetrating insights currently available to us, and these insights are the fruit of research and scholarship. A good teacher has to know where educational formation is headed, and cannot really understand that goal without participating actively and continually in the advancement of knowledge.

Finally, but most importantly, Pepperdine is a Christian university. Large, public universities fi nd it diffi cult, if not impossible, to address religious belief. As young men and women enter college and begin to assume responsibility for their future lives, fundamental questions acquire real urgency. Secular universities have a strong tendency to regard such questions as outside the purview of focused research, leaving undergraduates without support as they face complex matters of deep concern to them. But in fact faith and reason are not opposed; they are deeply allied. Faith seeks understanding, according to Anselm’s still valid formula, and reason is God’s gift to human beings given because it leads them to Him. Torn from faith, reason is a plant without roots or fl owers. If it repudiates reason, faith degenerates into impassioned dogmatism. Historically, the liberal arts have their roots in Greek culture, but they survived because they found shelter in the Christian community of faith. Learning cannot fl ourish unless it is fed and nurtured by a tradition; and a tradition must be sheltered and kept living by a community loyal to it. A Christian community provides the most sustaining matrix for liberal study, and liberal study prepares individuals to cooperate intelligently to make eff ective in their own lives, and in their world, the purposes of God that their faith reveals to them.

But in fact faith and reason

are not opposed; they are

deeply allied. Faith seeks

understanding, according to

Anselm’s still valid formula, and

reason is God’s gift to human

beings given because it leads

them to Him.

Professor Donald Marshall is Fletcher Jones Chair of Great Books in the Humanities/Teacher Education Division of Seaver College. A graduate of Yale and Harvard, Don has taught for over 30 years in public research institutions.


C h r i s t i n e G r i m m

s a freshman at Seaver College, I was constantly

challenged by new ideas, experiences, and people.

Many concepts were easy to grasp. Others were not so

clear. In my first year, one concept that didn’t resonate

with me was the University’s motto, a reference to

George Pepperdine’s favorite New Testament scripture

that says: “Freely Ye Received, Freely Give.” Frankly, my

suitemates and I thought it was some kind of joke; it

seemed to us that a Pepperdine education was anything

but free.

s a freshman at Seaver College, I was constantly

challenged by new ideas, experiences, and people. A

t H E R I V E R G I V E s a s m u c h a s i t r e c e i v e s


Still, I understood that my education was of great value, and though I couldn’t articulate it then, I understood that I was changing. During my four years, experiences and relationships fundamentally challenged me—forcing me to make some very “grown up” decisions at a time when I could not comprehend their lasting imprints. Most of these transformational moments took place outside the classroom, and although the years have softened the details, special moments and people remain vivid in my memory: Dr. Michael Gose relentlessly pushed me to abandon my comfort zone and get involved in student government; then executive vice president Andy Benton coached me as student body president to approach high-stakes, emotional issues with professional objectivity; and Dr. Claudette Wilson modeled the behaviors of a Christian woman who was graceful and service-minded, while still influential and assertive.

Of course, many other staff and faculty freely contributed to my growth. I especially remember Dr. Dan Caldwell, Dr. Victoria Myers, Rich Dawson, and Sara Jackson. But as a current volunteer with the University, I realize that there must have been many more in the shadows—alumni, donors, and staff who added generously yet anonymously to my development. These people quietly, deliberately empowered me with new behaviors, all of which felt foreign and uncomfortable, but allowed me a level of impact and influence to truly make a difference.

PrePared to Make a differenceMy Pepperdine experience cannot be confined within four short

years because the relationships I built then live on. Upon graduation, I married a Seaver College alumnus, Bill Grimm, in Stauffer Chapel, with Dr. Michael Gose and my father, John DiBattista (MBA ’85, GSBM) performing the ceremony. Yet even with these personal connections, I did not stay consistently engaged with the University. For years Bill and I drifted far from Pepperdine, busy with two small children, my consulting business, and Bill’s printing company. It did not seem important or relevant for us to attend functions, engage with alumni, or give back to Pepperdine. In fact, we were not totally convinced that this needed to be a priority.

turning PointsSeveral years ago, Bill and I were visiting dear friends and

reminiscing about our fond college days when the conversation took a turn and revealed a disturbing trend. Each of us, once so engaged

with our alma mater, had disconnected from each other and the University. As I listened to my friends, I was sad and disturbed that we had fallen away from a place we all called “home.”

In the following months, I informally surveyed my extended circle of Pepperdine friends. I learned that while many had never given to the University, most would never consider doing so and saw no reason to attend Homecoming or campus events. I wondered how a school like Pepperdine, dedicated to solid Christian values and focused on building character, could have such a weak connection to the body that is the school’s dividend to society.

Around the same time, I heard now president Andy Benton, say “The University mission means nothing if it is not lived out in the lives of the alumni.” I approached Andy asking how alumni issues were prioritized in University strategy and how he planned to engage alums in a new and different way. His answer was clear.

engaged in a Life of PePPerdineWith his vision of a mutually engaged community of students,

alumni, faculty, staff, donors, and friends, I began to imagine a different Pepperdine. Pepperdine’s mission and contribution to its students and, by extension, the community at large is unique and incomparable. This being true, I believe that our relationship with stakeholders must also be unique.

I envision students learning and growing through interaction with faculty, alumni, and administration. I see each graduating student facing a multitude of opportunities as they are ushered into their adult life by a robust and supportive Pepperdine community.

I imagine a global web of alumni who find incredible value in maintaining social and professional connections to and through the University. I see them participating in continuous learning, serving and mentoring others, and nurturing meaningful relationships with Pepperdine people.

Students today are just beginning to learn what service and leadership actually mean. Only when they establish themselves as individuals, partners, parents, citizens, and leaders do they truly have the opportunity to practice and advance the mission set forth by George Pepperdine almost 70 years ago. What was his favorite scripture again? Freely you received. Freely give!

I imagine a global web of

alumni who find incredible

value in maintaining social and

professional connections to

and through the University.

Christine Grimm is a 1990 graduate of Seaver College and founder of the Pepperdine Ambassadors Council. She is the Principal Consultant of TES, Inc., a strategic consulting and executive development firm. She is currently working with Pepperdine to establish the Alumni Leadership Council.

A W E L L s P R I n G o F H o P E A n d P R o M I s E

he light of Pepperdine shines most brightly through

our students. Their passion, creativity, and

competency to address challenging problems

throughout the world gives us hope that there will be

a better tomorrow. Th e following stories represent

just a sampling of the good that is being done

through the lives of Pepperdine students. We believe

they provide the most accurate appraisal of the value

of our work.

he light of Pepperdine shines most brightly through

our students. Their passion, creativity, and T

S t u d e n t P ro f i l e s


H o p e G rows i n A f r i c a

South Africa. June and July 2006. Seaver College professor Robert Lloyd leads a class of 12 students in a summer program to examine crime, corruption, prostitution, HIV/AIDS, and other daunting challenges facing some of the world’s most impoverished citizens. Dr. Lloyd brought tremendous experience to the South African trip. He lived there for five years and had worked within several African nations over the past 18 years. Touring a well-run private Catholic school provided a stark contrast to the runaway abuses they saw in public AIDS clinics and prisons. That’s when a light went on. Megan Barnes and the other students saw education as the key and wanted to take some positive action that might have lasting impact. After meeting one Catholic school student in particular, a young girl who had lost her scholarship and would soon be heading back to the meanest of streets, Megan and her classmates met with the headmaster. They learned of the student’s dire financial condition and all pledged an equal amount to cover five years of the girl’s school tuition. Returning to California, Megan established a bank account in Malibu and has personally guaranteed all the pledges. She and her classmates remain committed to making the support of other South African students an ongoing Pepperdine project.

C h a n g i n g L i ve s T h ro u g h L aw

Honduras. April 2006. Working with community leaders and the Association for a More Just Society (AJS), School of Law student Matt Vandermyde studied complications in property laws that fuel poverty while generating social strife and violence. Matt’s study found that a number of factors, including lack of transparency, government noncompliance, and the politicization of property law, left Honduran families facing financial turmoil and the threat of physical violence. AJS held a press conference and presented the results of Matt’s findings. His passion for changing lives through law is not purely academic. As a member of the Church of Jesus Christ of Latter-Day Saints, Matt served a two-year mission in Argentina after his freshman year in college. There, he saw firsthand how the law can affect the everyday lives of people. Inspired by an American attorney working to change unjust laws in Chile and Argentina, Matt committed himself to the law and to a life of helping others. After serving as an editor of Pepperdine Law Review, he received an offer from the prestigious firm of Skadden, Arps, Slate, Meagher & Flom, where he intends to work upon graduation. After his experiences abroad, Matt returned to Malibu reinvigorated and committed to his studies and to serving needs of others through his work.

M A t t V A n d E R M y d E a n d M E G A n B A R n E s

Matt Vandermyde

Megan Barnes

H e a l i n g B o d y W i t h S p i r i t

Iran. May 2006. When Haydeh fakhrabadi traveled to Iran, it was not for a customary family visit. The fourth-year Psy.D. student at the Pepperdine Graduate School of Education and Psychology was working on her dissertation. The subject: “The Religious Coping Methods Used by Parents of Pediatric Cancer Patients.” Haydeh has long had an interest in the field of religion and health. Her advisor, Dr. Edward Shafranske, a well-known expert on spirituality in therapy, urged her to contact the National Center for Medical Sciences in Iran. The academy invited her to attend a weeklong annual conference on the growing field of religion and science where she gleaned data from leading Iranian academics. A psychology intern at home, Haydeh worked at Childrens Hospital Los Angeles with families of children diagnosed with cancer. Her experience taught her that spiritual support can be critical given the lengthy procedures and uncertain outcomes families face. During her time there, Haydeh organized a one-day workshop for the healthy siblings of cancer victims. And whenever a pediatric patient was ready to go back to school, Haydeh would visit the classroom before the child arrived and give a presentation to prepare the other children in the class ahead of time. The effort would help the child returning to school to make a smoother transition to normal life.

S ow i n g S e e d s o f D e m o c ra c y

Republic of Georgia. May 2006. Some internships are less glamorous perhaps than working at a large TV station, or for a Fortune 100 firm in the Big Apple. In the Republic of Georgia, interning with the National Democratic Institute for International Affairs, Pepperdine School of Public Policy student keino McWhinney confronted a different set of challenges: resolving territorial integrity and keeping government officials accountable. Dealing with the multi-layered bureaucracy offered Keino a heightened appreciation for the degree of social complexity that accompanies the country’s vast potential. The reality there underscored for him the need for what Keino calls “thoughtful policy makers.” That’s where he comes in. Early on, Keino wanted to formulate solutions and apply standards to situations with little regard to cultural context. Local staff members within the democratization program provided the wise counsel Keino needed to see things from perspectives sometimes vastly different than his own. He says indelible marks of his Georgian experience will stay with him forever as he applies better-informed ideas to the task of process democracy. A Lipscomb University graduate, he has a great desire to become a responsible policy maker and a passion to effect positive change within his own community and the world he shares with others.

H A y d E H F A k H R A B A d I a n d k E I n o M c W H I n n E y

Haydeh Fakhrabadi

Keino McWhinney


L e a n i n g I n t o S h a r p C u r ve s

Malibu. May 2006. Leather jacketed, wearing biker boots and a helmet, and riding his motorcycle, erik Bleitz wends his way through Malibu Canyon from Calabasas to Pepperdine. As a student in the Graziadio School of Business and Management’s Full-time MBA Program, and as president of the school’s Graduate Business Society, his calendar doesn’t offer much time for scenic rides up the central coast. A political science graduate of California State University, Northridge, Erik takes his position as head of the business society seriously with the goal of strengthening the value and experience of Pepperdine’s highly regarded full-time program. Erik is a voting member on the program’s administrative committee, which includes faculty department chairs and others. He has offered input on curriculum, helped implement changes to new student orientation, and worked to integrate Dean Linda Livingstone’s concept of “value centered leadership” into the school experience. Among his areas of focus has been the Graziadio School’s participation in the annual Challenge for Charity, which celebrates service and giving back on the part of students from several prominent graduate business schools including Stanford University. Erik has also served as president of Net Impact’s Pepperdine chapter and is a volunteer tutor at the Children’s Lifesaving Foundation.

C o m p a ss i o n W i t h o u t B o rd e r s

Various Cities. 2003-2006. A heavily stamped passport offers an insight into Seaver College intercultural communication major christine Yi. The worn booklet has stamps from such faraway places as Guatemala, Myanmar, and Ukraine, to list a few. But rather than accounting for holidays or vacations she’s taken, her passport pinpoints the many places in the world where she has addressed the needs of others—people she calls “fellow brothers and sisters who are hurting and crying out for help.” As involved at Pepperdine as she has been during service trips abroad, Christine is a natural leader and has held numerous positions in student government and in Pi Beta Phi. She has also served as a Step Forward Day site leader, spiritual life advisor, and convocation special programs director. Conversationally fluent in Korean, Christine finds time to help in her parents’ Korean restaurant business in Los Angeles. She speaks openly about believing she is called, “as a woman of God to be Christ’s hands and feet on the earth,” and that God has used Pepperdine “to strengthen my life with convictions of purpose, service, and leadership.” Christine’s willingness to reach outside of herself motivates her involvement in academic, spiritual, and student life. In all of this she has made a lasting impact.

E R I k B L E I t z a n d C H R I s t I n E y I

Christine Yi

Erik Bleitz


t H E y E A R I n R E V I E W

Th ose who have been associated with Pepperdine

for many years have watched the progress of the

University with interest. Th e growth of our academic

programs, the success of our NCAA Division I

athletic teams, and the list of notable scholars and

lecturers who have come to share in the Pepperdine

mission are but a few examples of the great strides

made during the past year. Th e following list of

activities and achievements is in no way meant to be

an exhaustive list, but rather a snapshot of the many

good things happening throughout the University.


Pepperdine University

seminar focuses on screenwriting’s impact on culture Th e Pepperdine Voyage presented a one-day retreat for Pepperdine students, faculty, and staff titled “Th e Screenwriter: Creator and Cultural Leader” at Villa Graziadio. Participating were keynote speaker Randall Wallace, screenwriter of Braveheart, We Were Soldiers, and Pearl Harbor; along with industry professionals including producer Ken Wales (Christy, Revenge of the Pink Panther, East of Eden) and television writers Joan Johnson (Th e Wild Th ornberrys, Rugrats, Sue Th omas: F.B.Eye), Gary Johnson (Doc, Sue Th omas: F.B.Eye), and Th om Parham (JAG, Touched By An Angel). Business consultant and writer David Hutchens held a session on “Metaphors Th at Transform,” and Provost Darryl Tippens spoke on “Storytelling as a Divine Vocation.”

Bible Lectures serve Th ousands Pepperdine University presented the 63rd Annual Bible Lectures in May. Nearly 5,000 people traveled to Malibu to hear renowned speakers off er messages on the importance of faith in today’s world. Th is year, the lectures focused on the theme “Life Together: Th e Heart of Love and Fellowship in I John.” Th e program included over 300 classes, as well as breakfast, lunch, and dinner programs; morning praises; music and drama groups; and lectures. Classes explored such challenging and varied topics as marriage, premarital concerns, church worship, parenting, and Bible study.

Weisman Museum showcases california art club Paintings A new exhibition of plein air paintings of Malibu titled “On Location in Malibu 2006: Paintings by the California Art Club” earned wonderful reviews for Pepperdine’s Frederick R. Weisman Museum of Art.

Provost Publishes Book on Jesus in everyday LifePepperdine provost Darryl Tippens published a new book titled Pilgrim Heart: Th e Way of Jesus in Everyday Life. Th e work examines discipleship as a particular way of life, guided by a set of simple, but powerful, daily practices known to the earliest disciples and the saints through the ages. Dr. Tippens delved into such topics as friendship, confession, forgiveness, and discernment.

seaver College

seaver dean’s Lecture series features acclaimed scholars Th e Seaver Dean’s Distinguished Lecture Series included Dr. Neal Lane, former director of the National Science Foundation. He presented “America’s Future in Science and Technology—Some Storm Clouds on the Horizon” in Smothers Th eatre. Dr. Lane served as the assistant to the president for science and technology and director of the White House Offi ce of Science and Technology Policy from August 1998 to January 2001.

david Mccullough Headlines associates dinner Author David McCullough and Pepperdine president Andrew K. Benton addressed an audience of nearly 600 at the 30th annual Pepperdine Associates Dinner at the Beverly Hilton Hotel in Beverly Hills. Th e Pepperdine Associates, generous friends and supporters of the University, gathered at the elegant black-tie dinner to celebrate and honor Pepperdine University as “A Dream in the Making.”

Pepperdine Hosts World’s Most Prestigious guitar competition

“Th e Parkening,” the world’s preeminent international guitar competition with the largest cash award of any classical guitar competition, took place May 30 through June 2 on the Malibu campus. Guitarists from all over the world competed for the coveted Gold Medal and top cash prize of $25,000. Th e competition is named after and led by renown guitar virtuoso and current Distinguished Professor of Music at Pepperdine, Christopher Parkening.


Additionally, dr. os guinness, author of Unspeakable: Facing Up to Evil in an Age of Genocide and Terror, also participated in the lecture series. His presentation, titled “Can Freedom Last Forever? -—Th e Framers’ Forgotten Question and How We Are Doing Today,” was held on the Malibu campus. Born in China and educated in England, Dr. Guinness has served as the executive director of the Williamsburg Charter Foundation and one of the drafters of the Williamsburg Charter, as well as a guest scholar at the Woodrow Wilson Center for International Studies and at the Brookings Institution.

Professors review new scholarly Works Th e Center for Faith and Learning and Pepperdine University Libraries hosted a book review panel on Dr. Th omas Reilly’s Th e Taiping Heavenly Kingdom: Rebellion and the Blasphemy of Empire. Th e book was reviewed by Pepperdine’s Joel Fetzer, associate professor of political science, and Mike Sugimoto, assistant professor of Asian studies. Th eir reviews were followed by comments from Dr. Reilly. In another book review session, professors Joel Fetzer and Chris Soper of the Seaver College Social Science Division, and authors of Muslims and the State in Britain, France, and Germany, responded to reviews by Pepperdine professor Alexander Diener and USC professor of international relations Laurie Brand.

Heidelberg alumni gather in Malibu Heidelberg alumni (’85-’86) celebrated their 20-year reunion on the Malibu campus. Ten years previous, Heidelberg alumni (’85-’86) were the fi rst group to hold their reunion in Heidelberg. From June 30 to July 2, 2006, that group grew to 90 people as the alumni, their spouses, and their children reunited on Pepperdine’s Malibu campus for meals, activities, and memories.

christian scholar Lecture series Hosts dr. J. d. g. dunn Th e Second Annual Frank Pack Distinguished Christian Scholar Lecture Series and the Seaver Dean’s Distinguished Lecture Series hosted Dr. J. D. G. Dunn, Lightfoot Professor of Divinity Emeritus at Durham University in England. He presented a series of lectures titled “Jesus Remembered (Th e Making of Christianity).” Dr. Dunn is a New Testament scholar widely known for writings on the Holy Spirit, St. Paul, and Jesus.

Professors coauthor text on national security Dan Caldwell, Distinguished Professor of Political Science, and Robert E. Williams, associate professor of political science, published Seeking Security in an Insecure World. Th e book off ers a thorough introduction to contemporary security studies, engaging students and general readers who wish to gain a better understanding of what security means today and how it can best be achieved.

study abroad Program continues to earn recognition Th e Institute of International Education ranked Pepperdine University No. 2 in the nation for the percentage of undergraduate students participating in study abroad programs. Th e ranking compares Pepperdine with other doctoral/research institutions such as Duke, Notre Dame, and Stanford. More than 60 percent of Pepperdine’s undergraduate students participate in some form of study abroad.

essay Wins “Personality Profi le” award Seaver Professor Paul J. Contino was awarded First Place in the category of “Personality Profi le” by the Catholic Press Association (2006 Magazine Award Winners) for his essay, “Th e Writer’s Life: Irony and Faith in the Work of Tobias Wolff .” Th e essay appeared in the October 21, 2005 issue of Commonweal magazine.

Pepperdine’s center for the arts showcases excellence Th e Dave Brubeck Quartet performed for a sold-out audience at Smothers Th eatre marking Brubeck’s eighth performance at the University. In another performance at Smothers, the Pepperdine University Fine Arts Division presented its annual Masterworks Concert featuring the Pepperdine choirs and orchestra. Milton Pullen, Pepperdine’s director of choirs, and Tony Cason, director of the University orchestra, conducted the concert. Th e Center for the Arts also presented Sing! Sing! Sing!, a tribute to Benny Goodman starring clarinet virtuoso and prolifi c recording artist Ken Peplowski.


conference examines character, calling, and careers A conference called “Comm Connection: Character, Calling, and Careers” was hosted by the Communication Division and featured several distinguished speakers including Jerry Mitchell, award-winning investigative reporter; Rick Schirmer, who led marketing and advertising eff orts for Th e Chronicles of Narnia; and Michael Warren, creator of television shows such as Family Matters, Step by Step, and Th e Nanny. Th e speakers addressed ethical and professional issues in media and faith considerations in the choice of media careers.

Graphic takes top Honors Pepperdine’s student newspaper, Graphic, was named a Pacemaker winner at the 2005 Associated Collegiate Press (ACP) Convention in Kansas City, Missouri. Th e honor for general excellence is recognized as the most prestigious honor for college newspapers and has been likened to the Pulitzer Prize for college newspapers. Th e Graphic, which is a member of the Pacemaker Hall of Fame, also won the award in 1998 and 2001 and placed as a fi nalist in 1999, 2002, and 2003.

fulbright scholars Two recent Seaver College graduates were among the talented individuals selected to receive Fulbright awards for international study in the 2006-07 academic year. Michael Engle (B ’06, SC) was awarded a Fulbright U.S. Student scholarship to study psychology in Nepal, where he will explore methodologies used in Tibetan monasteries to develop attentive skills in young children. Recipient of a Fulbright Teaching Assistantship, Molly Oster (B ’05, SC) will teach English as a second language in Germany.

Graziadio school of Business and Management

Professor Worley coauthors Book on organizational eff ectiveness Christopher G. Worley, an associate professor at the Graziadio School and former director of the master of science in organization development (MSOD) program, coauthored a new book on organizational eff ectiveness. Titled Built to Change: How to Achieve Sustained Organizational Eff ectiveness, the book underscores that designing the organization for change is “the ultimate competitive advantage in today’s business environment.”

High-Powered career tool Launched Th e Graziadio School implemented a customized job-fi nding solution, powered by eCampusRecruiter.com, geared to accommodate the growing career services needs of alumni, students, and corporate partners. Sponsored by the George and Reva Graziadio Foundation, Graziadio Talent Online (GTO) provides job seekers with access to career management resources to advance both personal and professional development, and is a resource for employers seeking talented business professionals.

dean’s executive Leadership series showcases top execs President of the Disney-ABC Television Group and cochair of Disney Media Networks Anne Sweeney spoke at the Graziadio School’s Dean’s Executive Leadership Series. Sweeney is the highest ranking female executive in Th e Walt Disney Company and was recently named the Most Powerful Woman in Entertainment by the Hollywood Reporter, one of the 50 Most Powerful Women in Business by Fortune, one of Th e World’s 100 Most Powerful Women by Forbes and one of the Top 50 Women to Watch by the Wall Street Journal. Also speaking in this year’s Dean’s Executive Leadership Series was J. D. Power III, founder of J. D. Power and Associates. Power has spent more than 40 years as a pio neer in advancing customer satisfaction, of which more than three decades has been dedicated to leading one of the most prestigious marketing in formation fi rms in the world. Also highlighting the series was Myrlie Evers-Williams, former chairman of the National Association for the Advancement of Colored People (NAACP) and widow of civil rights leader Medgar Evers. She spoke on a central theme of the Graziadio School: values-centered leadership; Evers-Williams also stressed the importance of maintaining values while striving for success in business.


executive MBa ranked among Best in nation The Pepperdine Graziadio School of Business and Management was among the top executive MBA programs as ranked by Financial Times and BusinessWeek.

Business students compete in Banking case study A team of students from the Graziadio School competed against students from the UCLA Anderson School and the USC Marshall School in the Southland’s inaugural investment banking case study competition. Sponsored and designed by the Association for Corporate Growth-Los Angeles (ACG-LA), the case study competition challenged students with a simulated real-world investment banking scenario written by the Los Angeles investment banking firm of Houlihan, Lokey, Howard & Zukin.

eMBa students support st. John’s Health center Executive MBA (EMBA) students Amina Rafiqzada, Nick Mitchell, Venky Kulkarni, Ajit Ahooja, and Shereen Youssef teamed up to represent the Graziadio School at the St. John’s Jimmy Stewart Relay Marathon at Los Angeles’ Griffith Park. For the past 24 years, more than 55,000 runners have sprinted through Griffith Park at the Saint John’s Jimmy Stewart Relay Marathon, benefiting Saint John’s Health Center.

students Win Big at MBa case competition A team of five full-time MBA students finished in the top three at the 2006 John Molson MBA International Case Competition. This year marked the 25th anniversary of the prestigious case competition where 36 teams of top MBA students from around the world met in Montreal, Canada, to compete for the Molson Cup.

Graduate school of Education and Psychology

gseP celebrates 35th anniversary The Pepperdine Graduate School of Education and Psychology (GSEP) hosted its 35th anniversary celebration at Casa del Mar Hotel in Santa Monica, California on March 11, 2006. To commemorate the milestone, a 35th Anniversary Scholarship Fund was announced and all tax-deductible gifts made to GSEP during the anniversary year will be awarded to students. Keynote speaker was Dr. Miroslav Volf, author of numerous books on diversity from a faith-based perspective. He is also the Henry B. Wright Professor of Systematic Theology at Yale Divinity School and director of the Yale Center for Faith and Culture.

gseP accreditations awarded The doctor of psychology (Psy.D.) program in clinical psychology was granted full reaccreditation from the American Psychological Association (APA). In related news, the California Commission on Teacher Credentialing (CCTC) granted

full approval of the standards document prepared by the Educational Leadership Academy: the master of science in administration and preliminary administrative services (Tier I) credential program; and the doctor of education in educational leadership, administration, and policy. This approval results in full accreditation by the CCTC for both programs. Lastly, GSEP’s Office of Professional Development received a five-year accreditation from the American Psychological Association (APA) which is the longest accreditation period awarded.

Professor david W. foy receives distinguished scientific achievement award David W. Foy, Ph.D., professor of psychology, received the 2006 Distinguished Scientific Achievement in Psychology award from the California Psychological Association. In addition to his 14 years of service at GSEP, he also served as senior research consultant for the Veterans Administration’s National Center for the Study of Posttraumatic Stress Disorder, in Menlo Park, California, and Honolulu, Hawaii.

center for the family celebrates 10th anniversary The Center for the Family celebrated its 10th Anniversary and remains committed to promoting healthy relationships and strong families. Outreach activities include: marriage, parenting, and family presentations and seminars; services to equip young adults in developing healthy relationships; partnerships with churches and other organizations to provide resources for families; as well as linking churches and organizations to resources and speakers.

Professor reyna garcía-ramos Joins california association for Bilingual education Board Dr. Reyna García-Ramos was elected to serve as a member of the board of directors for the California Association for Bilingual Education. The nonprofit organization was incorporated in 1976 to promote bilingual education and quality educational experiences for all students in California.

doctoral student attends Prestigious conferences Michelle French, an organizational leadership doctoral student, attended the invitation-only Organizational Behavior Teaching Society Doctoral Institute at Nazareth College. French also gave a presentation developed in collaboration with GSEP faculty member Dr. Doug Leigh, at the Organizational Behavior Teaching Conference sponsored by the Doctoral Institute.

Professor edward shafranske Becomes aPa fellow Professor Edward Shafranske was recently named a Fellow of the Society of Clinical Psychology of the APA, which also released a video titled Addressing Issues of Spirituality and Religion in Psychotherapy. The video features Dr. Shafranske in its distinguished clinician training series.


school of Law

generous gift establishes Law school dean’s chair Duane and Kelly Roberts of Laguna Beach made a historic seven-fi gure gift to Pepperdine endowing the chair of the dean of the Pepperdine School of Law held by Kenneth W. Starr. Th e gift funded Pepperdine University’s fi rst dean’s chair. Ronald Phillips, vice chancellor and School of Law dean emeritus praised the Robertses for “their close identifi cation with law, government, politics, entrepreneurship, community service, and historic preservation—the very best of American ideals and values.” President Benton added, “In the life of any University there are always, within each generation, a few families that come to the forefront and truly change the face of the institution. Th e Robertses are such a family.”

straus institute once again named first in nation Th e Pepperdine School of Law Straus Institute for Dispute Resolution was named the nation’s No. 1 dispute resolution program by U.S. News & World Report. Th e Straus Institute has held the top ranking fi ve years out of the previous seven. Th omas J. Stipanowich, former president and CEO of the International Institute for Confl ict Prevention and Resolution, was appointed academic director of the Straus Institute.

Law Professor receives u.s. state department appointment Colleen Graff y, associate professor of law and academic director of Pepperdine’s Law Program in London, England, was sworn in as deputy assistant secretary of state for public diplomacy for Europe in Washington, D.C. She took a leave of absence from Pepperdine to work under secretary of state Condoleezza Rice at the State Department.

courtyard named for Longtime Benefactors Th e courtyard entrance to the McConnell Law Center at the School of Law offi cially became the Gerald and Joan Garner Plaza, a beautiful memorial to Gerald’s life and a symbol of the enduring friendship of Joan and the Garner family. Th e Garners became involved with Pepperdine when their son Craig enrolled at the School of Law in 1992. Since then, the entire family has partnered in the University’s progress through providing vital support to Pepperdine.

Ally McBeal star addresses symposium Th e Beverly Hills Bar Association, in conjunction with Pepperdine Law Review, presented a symposium titled “Balancing Career and Family” at the School of Law. Th e program addressed legal and social issues that working parents face and featured 20 nationally recognized specialists in law, medicine, psychology, sociology, education, and aging. Calista Flockhart, a single parent and star of the long-running television show Ally McBeal, delivered the keynote address.

alumnus endows center for entrepreneurship and Law Th e School of Law announced a major gift naming the Geoff rey H. Palmer Center for Entrepreneurship and the Law. Th rough a certifi cate program consisting of tailored coursework, seminars, conferences, and externships, the Palmer Center gives students opportunities to apply their legal education as entrepreneurs or attorneys for entrepreneurs. Th e center provides students with an enriched legal education preparing them for demanding roles in the high-tech environment

as lawyers, business consultants, and venture capitalists. Geoff rey Palmer graduated from Pepperdine University School of Law in 1975, and was honored by the school as the 2005 Distinguished Alumnus. Founder and CEO of G. H. Palmer Associates, a diversifi ed real estate development fi rm, he has consistently demonstrated both entrepreneurial and keen legal skills throughout his distinguished career.

supreme court chief Justice addresses studentsPepperdine School of Law students will long remember March 8, 2006, when they participated in a private audience with the 17th chief justice of the United States, John Roberts. Th e meeting took place in advance of the chief justice’s fi rst public appearance following his installation. Th e highest ranking justice in the nation met with the Pepperdine students at the Ronald Reagan Presidential Library in Simi Valley, California, before addressing a public audience.


scholars convene to examine rookie Year of the roberts court Th e School of Law presented a major symposium featuring the nation’s leading constitutional scholars who examined the U.S. Supreme Court’s recent term. Panelists included Akhil Reed Amar, a 2006 visiting professor of law at Pepperdine; Erwin Chemerinsky of Duke Law School; Elizabeth Garrett of USC Law School; and host conveners of the program, School of Law professor Douglas Kmiec and dean Kenneth W. Starr. “Th e Rookie Year of the Roberts Court & A Look Ahead” was held at the school’s Odell McConnell Law Center and the program was taped for a nationwide audience by C-SPAN for the network’s America & the Courts series.

school of Public Policy

dean and Professor contribute to Book on Business ethics Dean James R. Wilburn and professor Gordon Lloyd contributed to a book published by Scrivener Press titled Business and Religion: Confl icts and Trends in Business Ethics. Dean Wilburn’s chapter is titled “Capitalism Beyond the End of History: Missing Elements in Teaching Business Ethics.” Professor Lloyd’s chapter is “Th e Archbishop of Canterbury: On the Facts and Values of Religion and Globalization.”

school of Public Policy examines us-taiwan relations Th e School of Public Policy hosted a discussion on current United States-Taiwan Relations. Panelists included the following distinguished political science professors: UCLA’s Richard Baum, Pepperdine’s Robert Kaufman and Bruce Herschensohn, and USC’s Stanley Rosen. Th e panelists discussed how the traditionally good relationship between the United States and Taiwan might change in view of China’s strengthening economic and military power.

Professor James Q. Wilson speaks on crime rates Professor James Q. Wilson’s lecture “Exposing the Truth: Crime Rates in the U.S. versus Europe” was held in the Drescher Graduate

Campus auditorium. Professor Wilson discussed why crime rates in America are, for most off enses, lower than they are in many European nations. Th e School of Public Policy’s Charles and Rosemary Licata Lecture Series proudly hosted Professor Wilson, the University’s Ronald Reagan Professor of Public Policy.

Th eodore J. forstmann scholarship announced Th e School of Public Policy announced a $1 million scholarship gift from Th eodore J. Forstmann, a longtime friend of the school. Th e scholarship was established to embrace Forstmann’s long-standing commitment to education and his personal interests in the social and spiritual benefi ts of free markets and traditional values.

Michael novak speaks on religion and democracy Th e School of Public Policy’s Davenport Institute presented professor Michael Novak who spoke on “Religion and Democracy: Th e Case of Islam” as part of the Charles and Rosemary Licata Lecture Series. Professor Novak is the George Frederick Jewett Scholar in Religion, Philosophy, and Public Policy at the American Enterprise Institute and has been a John M. Olin Distinguished Visiting Professor at the School of Public Policy. Th is was the concluding lecture on the “Prospects for Democracy in the Middle East” series, presented by the Davenport Institute.

Bruce Herschensohn appears in Frontline special Bruce Herschensohn, senior fellow in the Davenport Institute at Pepperdine’s School of Public Policy, was featured as an expert in a fi lm titled Th e Tank Man, presented by Frontline, on PBS. Th e fi lm investigates the mystery of the man who stopped the tanks in Beijing, 1989, and explores the haunting memories of his actions.

Professor angela Hawken is Lead economist on Major study Angela Hawken, assistant professor at the Pepperdine School of Public Policy, worked as the lead economist on a newly released UCLA study that reports that California taxpayers save nearly $2.50 for every dollar invested in nonviolent drug off enders eligible for substance abuse treatment under the state’s Substance Abuse and Crime Prevention Act of 2000 (SACPA), or Proposition 36.


distinguished Lecture series features tim ransdell The School of Public Policy’s Distinguished Lecture Series hosted Tim Ransdell, executive director of the California Institute for Federal Policy Research, who spoke on “The State and Federal Fiscal Relationship: Balance of Payment.” A native Californian, Tim Ransdell has worked in Washington, D.C., in congressional and federal affairs for more than 20 years.

Go WAVEs

Waves earn all-sports trophy The National Association of Collegiate Directors of Athletics awarded Pepperdine University the inaugural Division I-AAA Athletics Directors Association All-Sports Trophy in the 2004-05 Sports Academy Directors’ Cup. In being honored, Pepperdine was the top-ranked Division I-AAA (non-football) school in the nation.

Water Polo coach Joins sports elite Terry Schroeder was honored with the 2006 NCAA Silver Anniversary Award acknowledging his achievements as an athlete, coach, and upstanding citizen. Regarded as one of the world’s outstanding water polo players, Schroeder is the heart of Pepperdine’s program. The Silver Anniversary Award is given to only six recipients per year, recognizing former student-athletes who complete successful collegiate careers and excel in their chosen professions. Previous honorees include Senator Jack Kemp, Jack Nicklaus, Joan Benoit Samuelson, and Kareem Abdul-Jabbar.

Baseball Wins 17th Wcc title Waves baseball claimed its 17th West Coast Conference (WCC) Championship and earned the conference’s automatic berth to the NCAA Championships. Pepperdine was named the No. 1 seed of the Malibu Regional.

Women’s golf finishes Third in nation Women’s Golf finished No. 3 in the NCAA Championships and Coach Laurie Gibbs was selected as WCC Coach of the Year.

scholar-athletes achieve Highest standards Pepperdine volleyball middle blocker Andy Hein and setter Jonathan Winder were named American Volleyball Coaches Association All-Americans. Freshmen Chase d’Arnaud and Brett Hunter were named Freshman All-Americans by Collegiate Baseball Newspaper. The selections mark the fourth straight year at least one Waves player has earned the honor. Nick Kliebert (baseball) was named West Coast Conference Scholar-Athlete of the Year. Seaver College graduate Ricky P. Steelman (’03) was named a scholar in the prestigious Jack Kent Cooke Foundation Graduate Scholarship Program. Steelman was one of 77 recipients chosen after a nationwide selection process that drew 1,100 nominees. A total of 78 Pepperdine scholar-athletes were named to the 2006 WCC Commissioner’s Honor Roll for their work in the classroom during the 2005-06 academic year. Seven scholar-athletes earned Gold Honors.

donors enrich Pepperdine athletics Bob and Denise Beaman received recognition for their assistance to Pepperdine Athletics at the Waves Club Dinner. In addition, Hank and Dee Stickney and John and Lewana Pirozzi received the Al Duer Award for their significant gifts to Pepperdine Athletics at the Waves Club Dinner.

Men’s tennis Wins ncaa championship The men’s tennis team highlighted the 2005-06 athletics season claiming its first NCAA national championship with a victory over previously undefeated Georgia. Head coach Adam Steinberg’s squad concluded the year with a 36-2 overall record and Steinberg was named National Coach of the Year. Overall, the baseball team, women’s basketball, men’s golf, women’s golf, women’s soccer, men’s and women’s tennis and women’s volleyball teams all competed at the NCAA Championships.

Seaver College welcomed Paul Begin (Seaver ’99) home to its International Studies and Languages Division. Since graduating from Seaver College, Paul went on to earn a Ph.D. from the University of Virginia. His research interests include fi lm theory and Hispanic studies.

Th e Natural Science Division at Seaver College added several outstanding members to its already strong cadre of scientists. Joseph fritsch, with his Ph.D. from the University of Minnesota, Twin Cities, comes to Pepperdine with a wealth of experience, most notably from Pfi zer Global Research and Development.

After joining Pepperdine as a visiting professor in 2004, rodney Honeycutt, Ph.D., was welcomed by the Natural Science Division as a permanent faculty member this year. Considered a leader in the fi eld of genetics, Rodney brings with him an impressive record of research. Among his many posts that have positioned him as a national authority in his fi eld, Rodney has served as a program director for the National Science Foundation.

Also in Natural Science this year are two visiting professors—Zohair isshak and ana tontcheva. Before coming to Pepperdine, Ana, a graduate of UCLA whose fi eld of study is organic chemistry, was a scientist both in design and research at Dow Chemical and in absorbent technology at Kimberly-Clark Corporation. Professor Isshak, who comes to us from Vanderbilt University as a senior lecturer in mathematics, does research in the history of mathematics, but his self-stated passion is for teaching students.

Th e Communication Division also added several distinguished members to its faculty this year. kara gould earned her Ph.D. from the University of Utah and maintains research interests in media production practices, media history, and production pedagogy.

Like Kara, Johny garner also is an expert in the fi eld of communications. Johny’s interest lies with personal and organizational communication theory. Johny earned his Ph.D. from Texas A&M University where he studied communication theory.

Michael Lasley comes to Seaver College as a visiting professor in the Humanities and Teacher Education Division from Syracuse University. His research interests focus on diversity in higher education, popular culture, and the agrarian American South.

epperdine University’s mission—to develop students for lives of purpose and hearts for service—is supported by many dedicated staff members and volunteers. But very few people have as much infl uence on the lives of our students as do Pepperdine’s faculty. For this reason, the provost, deans, and department chairs meticulously survey the landscape of higher education each year in search of those unique individuals who are both greatly admired by their peers in the academy and who are committed to Pepperdine’s mission. Additionally, the University seeks those who are equipped and gifted to create and contribute to the world’s body of knowledge through excellence in research. It is a rare individual who possesses each of these characteristics, but the University mounts an ambitious eff ort each year to fi nd and attract such people.

Th is year, 22 new faculty members joined the Pepperdine family of scholars and teachers. Many have come from the fi nest institutions in America with the desire to participate in the transformative educational enterprise that is Pepperdine University.

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Also joining the Humanities and Teacher Education Division as a visiting professor is Leslie kreiner-Wilson who received her Ph.D. from Claremont Graduate University. Leslie brings her unique interests in popular culture, Americana, and American fi lm.

An accomplished pianist and professor of music, Louise Lofquist comes to Pepperdine’s Fine Arts Division as a visiting professor. She received her D.M.A. from USC in the fi eld of keyboard collaborative arts. Her research interests include music history, European history, and modern languages.

Seaver’s Social Sciences Division added Bryan t. Mc graw as a new member of the faculty. Bryan comes to us from Harvard University where he completed his Ph.D. in 2005. Prior to coming to Pepperdine, he served as an intelligence offi cer in the U.S. Army and held a postdoctoral fellowship at the Erasmus Institute at the University of Notre Dame.

cooker Perkins has joined Seaver College in the fi eld of sports medicine. She received her Ph.D. from Michigan State University where she also received an Excellence in Teaching citation. Cooker was a postdoctoral fellow in the fi eld of disease prevention research at Stanford University before coming to Pepperdine.

Th e Business Administration Division has welcomed elliot Mcgucken as a visiting professor. With his Ph.D. in physics from the University of North Carolina, Chapel Hill, Elliot has turned his attention to technology and business. He is especially interested in the fi eld of artistic entrepreneurship.

Paul gift, with his Ph.D. from UCLA, brings his research interests in antitrust law, industrial organization, law and economics, and econometrics. He is teaching economics at the Graziadio School.

nelson f. granados began this year as professor of information systems in the Graziadio School. His postgraduate work is from the University of Minnesota where he is completing his Ph.D. and where he has taught as a member of the faculty in the Carlson School of Management.

With his research interest in the fi eld of industrial organization and applied microeconomics, carl r. gwin comes to the Graziadio School as a professor of economics from Baylor University. Carl received his Ph.D. from Indiana University where he taught strategic pricing, microeconomics, and macroeconomics.

Registered as a professional petroleum engineer, Warren J. Hahn brings a wealth of practical experience to the Graziadio classroom. He has served as an economic consultant for BP America, ARCO Oil and Gas, and Vastar Resources. With his Ph.D. from the University of Texas at Austin, Warren is an expert in the decision sciences.

Finally, the Graziadio School welcomed kenneth ko to off er his expertise in the fi eld of decision sciences. With a signifi cant history of professional experience with companies such as PricewaterhouseCoopers, Ken brings his interest in product strategies in high technology industries to the classroom. With his Ph.D. from Stanford University, he teaches quantitative analysis, operations management, and statistical analysis.

Th e Graduate School of Education and Psychology (GSEP) welcomed Jeanmarie Hamilton Boone to its Education Division. Jeanmarie received her Ph.D. from Claremont Graduate University and specializes in curriculum development, construction and assessment for reading, and language arts in linguistically and culturally diverse student populations.

Th e School of Law continued its eff orts this year to bolster its faculty by adding two professors with national reputations in their fi eld. ed Larson comes to Pepperdine from the University of Georgia, where he served as chair of the history division. He received his J.D. from Harvard Law School and his Ph.D. from the University of Wisconsin. In 1998, Ed won the Pulitzer Prize in history for his book, Summer of the Gods: Th e Scopes Monkey Trial and America’s Continuing Debate Over Science and Religion.

Th omas stipanowich was named the director of the Straus Institute for Dispute Resolution. Considered one of the nation’s foremost authorities in the fi eld of dispute resolution, Tom brings to Pepperdine’s nationally ranked program a depth of practical and theoretical experience. He received his J.D. from the University of Illinois College of Law and has served as the president and CEO of the International Institute for Confl ict Prevention and Resolution.

Th e Pepperdine School of Public Policy added an economics professor to its faculty this year. James Prieger is a professor of economics coming to Pepperdine from the University of California, Davis. He received his Ph.D. from the University of California, Berkeley. His research interests include regulated product innovation and taxation of telecommunications.

A–Carl Gwin B–Warren Hahn C–Bryan Mc Graw D–Ed Larson E–Tom Stipanowich F–Paul Gift G–Michael Lasley H–Johny Garner I–Paul Begin J–Kara Gould K–Rodney Honeycutt L–Joe Fritsch M–Kenneth Ko N–Leslie Kreiner-Wilson O–Louise Lofquist P–Ana Tontcheva Q–Cooker Perkins R–Jeanmarie Hamilton Boone

(not pictured: Zohair Isshak, Elliot McGucken,

Nelson Granados, James Prieger)


S E n I o r A D m I n I S T r A T I o n

andreW k. BentonPresidentPresident Benton, himself a product of Christian higher education, has served Pepperdine as the chief executive offi cer since July 2000. Prior to this role, he held the position of executive vice president for over nine years. He serves on several boards including the American Council on Education and the California State Chamber of Commerce. In addition to his responsibilities as chief executive, President Benton, an avid Waves fan, attends many athletic events, teaches courses in law, and holds a weekly Bible study in his home.

cHarLes B. runneLsChancellor EmeritusCharles Runnels began his career with Pepperdine in 1967 by serving on a committee whose work resulted in the establishment of the Malibu campus in 1971. He served as vice chancellor from 1971 to 1984 at which time he became chancellor. During his tenure as chancellor, Dr. Runnels led two highly successful campaigns—“Wave of Excellence” and “Challenged to Lead.” On January 1, 2006, he assumed the role of Chancellor Emeritus, eliminating only a few administrative daily responsibilities. He continues to work closely with Pepperdine’s closest friends and leads the University Board.

garY a. HansonExecutive Vice President and Chief Operating Offi cerGary Hanson received his juris doctorate from the Pepperdine University School of Law in 1980. He has ably served as general counsel since 1984, and vice president and general counsel since 2000. In his new role as chief operating offi cer, Gary has a broad range of responsibilities for fi nancial planning, budgeting, risk management, legal and regulatory aff airs, construction and campus planning, and human resources.

On August 1, 2006, Andrew Benton announced several changes in the structure of his administrative team. Gary Hanson, longtime general counsel at Pepperdine, was named executive vice president and chief operating offi cer. Vice president for fi nance and administration, Jeff Pippin, was appointed to the newly created position of senior vice president for investments and chief investment offi cer. Keith Hinkle, Pepperdine’s associate vice chancellor for estate and gift planning, was added to the administrative team when he was named the University’s vice president for advancement and public aff airs, and chief development offi cer.


darrYL L. tiPPensProvostDarryl Tippens has been a literary scholar, instructor, and professor for over 27 years. As the chief academic offi cer for the University, he provides overall direction and management of the University’s academic programs in each of Pepperdine’s fi ve schools. During his fi ve years as provost, Darryl has strengthened the link between scholarship and faith and has been instrumental in raising the level of discourse around this subject.

nancY Magnusson durHaMSenior Vice President for Planning, Information, and TechnologyNancy Magnusson Durham began her career at Pepperdine in 1979 as an assistant professor of psychology at Seaver College. Since then she has served as the dean of the Graduate School of Education and Psychology for 12 years and the director of the London program. Today, she oversees the strategic planning process, institutional research, and the implementation of Pepperdine’s enterprise resource planning project, known on campus as “Connections to Community.”

cHarLes J. Jeff PiPPinSenior Vice President for Investments and Chief Investment Offi cerJeff Pippin is a CPA with extensive experience in fi nance with Arthur Andersen and Halliburton before coming to Pepperdine in 1981. He was appointed chief fi nancial offi cer in 1991 and vice president in 2000. In his new role, he will focus his full attention on Pepperdine’s investments. His work with the Investment Committee within our Board of Regents off ers a unique opportunity for growth and strengthening of our fi nancial future.

s. keitH HinkLeVice President for Advancement and Public Aff airs and Chief Development Offi cerAfter graduating from the Pepperdine University Law School in 1997 and working as a tax attorney for three years in Orange County, California, Keith Hinkle returned to Pepperdine in 2000 as the associate vice chancellor for estate and gift planning. In August 2006 Keith was named vice president for advancement and public aff airs. He will oversee alumni aff airs, the annual fund, major and leadership gifts, planned giving, and public aff airs.


JaMes r. WiLBurnDean, School of Public Policy

James Wilburn is the founding dean of the School of Public Policy, which was launched in 1996. He is the author of several books on American history, business management,

and leadership. Having served as cochair of the U.S. Committee to Assist Russian Reform, he is widely

considered an expert on the subject. Under Dean Wilburn’s leadership, the School of Public Policy provides students with additional exposure to current topics and policy thinkers through strategic alliances with neighboring policy centers such as graduate programs of the RAND Corporation, the Reason Public Policy Institute, the Ronald Reagan Presidential Library, and the Pacifi c Research Council.

kennetH W. starrDean, School of Law

Kenneth Starr has served as dean and professor of law at the School of Law since 2004. Just this year, he became the fi rst to hold the Duane and Kelly Roberts Dean’s Chair named after the fi rst benefactors to fully endow a dean’s chair at Pepperdine. In 2006,

California Lawyer magazine named Dean Starr as a recipient of the prestigious Attorney of the Year award for his pro bono work in a Virginia clemency

case. Since coming to Pepperdine, Dean Starr has strengthened the School of Law’s reputation and classroom experience by attracting nationally recognized scholars and professors from around the country who share the University’s mission of achieving academic excellence in the context of a Christian worldview.

W. daVid BairdDean, Seaver CollegeSince coming to Pepperdine in 1988, W. David Baird, the Howard White Professor of History, has served as the chair of the Humanities and Teacher Education Division and dean of Seaver College since 1998. In 1991, Baird served as a Fulbright Lecturer at the University of Canterbury in Christchurch, New Zealand. In 2004 Dr. Baird initiated the Seaver Honors program that links students with scholar-mentors who guide them through the rigorous application process for such prestigious awards as the Fulbright Scholarship, the Barry M. Goldwater Excellence in Education program, the Coro Fellows program, the Jack Kent Cooke Foundation, and the Rotary Foundation.

Linda a. LiVingstone

Dean, Graziadio School of Business and ManagementDean Livingstone came to Pepperdine in 2002 and has worked to strengthen the Graziadio School’s mission of developing values-centered leaders for contemporary business practice. She has encouraged the expansion of the business school’s global network by increasing academic partnerships with more than 25 universities worldwide. In an eff ort to promote a greater exchange between the corporate world and the classroom, Dr. Livingstone launched the Education to Business program which has provided Graziadio School students the opportunity to consult with major corporations including Starbucks, Coca-Cola, and Raytheon.

Margaret J. WeBerDean, Graduate School of Education and PsychologyMargaret Weber was named dean of the Graduate School of Education and Psychology (GSEP) in 2001. Dr. Weber has published work on the socialization of graduate students and faculty development. She is a strong advocate of the scholar-practitioner model of learning that emphasizes practical application as well as theory. In 2006 GSEP launched its Urban Initiatives program. Th is ambitious initiative is designed to prepare prospective educators and mental health workers to work eff ectively in urban communities, like Greater Los Angeles, that have unique challenges related to immigration, overpopulation, and poverty.

A C A D E m I C D E A n S

the challenge I present to our alumni, our

University leaders, and those in our community

of scholars is to make their own lasting

contribution, and to build now, to build this

University tall, and straight, and strong.

— President Andrew K. Benton Founder’s Day, 2006

The Pasadena Graduate Campus, the Irvine Graduate Campus, the School of Law, the Westlake Village Graduate Campus, the West L.A. Graduate Campus, and the School of Public Policy


A d V A n C E M E n t

I

S . K e i t h H i n k l e

V i c e P re s i d e n t fo r

A d va n c e m e n t a n d

P u b l i c A f fa i rs

am told that Helen Pepperdine once

commented that her late husband would

never have imagined what Pepperdine

University had become. But while Mr.

Pepperdine may not have foreseen the

exact nature of the success of his beloved

college, he did envision that Pepperdine

would become a bright beacon in a

world that needed light. He envisioned

its greatness before the fi rst brick was

laid on the original campus at 79th and

Vermont.


George Pepperdine had confidence in the institution because he believed faith and reason could be effective partners in the academic endeavor. He believed that a fine liberal arts education influenced by a Christian worldview was possible and sustainable.

He also believed in Los Angeles. He once called the City of Angels the “Heart of the World.” He understood that his college would have greater influence with its home base in Southern California and correctly predicted L.A.’s growth and its broad influence on the national and international stage.

Finally, Mr. Pepperdine believed that men and women, when presented with the Pepperdine dream, would be motivated to lend their support. In truth, many marvel at our history of success in obtaining gifts from generous people who had no connection to Pepperdine other than a strong affinity with our mission, our dreams and our goals.

George Pepperdine’s reasoning has proven to be sound. In just under 70 years, his little college has risen to the top of many lists. It now finds itself in the company of some of most prestigious American institutions of higher learning. Most impressive is that it has achieved its success while remaining true to its mission.

As an alumnus of the Pepperdine School of Law, I can share personal testimony that this University is changing lives for good. As the associate vice chancellor for estate and gift planning for six years, I witnessed, with awe and deep gratitude, the vast numbers of caring, generous people willing to invest in the mission and aspirations of the University.

On August 1, 2006 I accepted President Benton’s invitation to lead the advancement effort at Pepperdine. I am honored to stand alongside Pepperdine’s chief “friendraiser” of over

30 years—Chancellor Emeritus Charles Runnels. He, too, is a visionary who zealously pursues the Pepperdine dream every day. He clearly sees a bright future for the University. He understands how its history has shaped the moment of opportunity that is before us, and he continues to inspire me about our future.

I am privileged to lead one of the finest teams of advancement and public affairs professionals in higher education. Last year our team, along with our chancellor emeritus and president, recorded a record total of gifts and pledges. These gifts from alumni and friends helped us increase student grants and scholarships, improve student life, hire new faculty, upgrade facilities and equipment, and support our scholar-athletes. The generosity of our donors is a strong endorsement of our work—work that has such a tremendous impact on the students we serve.

Like our founder and our president, I place students at the heart of the academic enterprise and I understand that if those students are to benefit from the finest courses of literature, history, religion, art, the sciences, education, psychology, business, and law, then we must do all we can to help those who serve them, especially our dedicated faculty.

As we enter our 70th year, we are forever grateful for our friends who continue to enrich Pepperdine in so many ways. We pledge our steadfast commitment to the ideals of this great institution—academic excellence, faith, community, and service—and we promise to see that the beacon, which Mr. Pepperdine envisioned, remains lit for the good of the world.

Like our founder and

our president, I place

students at the heart of the

academic enterprise and

I understand that if those

students are to benefit

…then we must do all we

can to help those who

serve them, especially our

dedicated faculty.


Th e narrative account of Pepperdine’s success describes many selfl ess acts made on behalf of our students. Some sacrifi ces have come as large and generous gifts. Without them, Pepperdine would not have survived beyond its infancy.

Other sacrifi ces are more personal. My own life would be only a shadow of what it is today had my birth mother not made the painful, but life-altering, decision to provide for me by off ering me up for adoption. In accordance with her wishes, I was placed into a Christian home with loving parents who raised me to enjoy right relationships not only with mankind, but with God. Her personal sacrifi ce saved my life. My adopted parents were both alumni of George Pepperdine College, and placed great value upon a Christian education. Th ey too made great sacrifi ces so that I could receive the kind of education they had.

Th anks to their values and the strength of my own Pepperdine education, I pursued a rewarding career in public accounting, and later, banking. Th e opportunities before me were staggering. But the quiet, anonymous sacrifi ces of the people who cared for me during my life led me back to my alma mater in 2002. Th eir example of service above self led me to want to live as they had.

My personal story is but one small chapter of the Pepperdine narrative, but it opens my heart to the thousands of other private sacrifi ces that are made to help our students lead rich and rewarding lives. As chief fi nancial offi cer and a steward of the University’s resources, I think of these stories as I prepare this fi nancial report.

A Financial Progress Report

Th e University’s total assets now approach $1.2 billion, again exhibiting solid growth from last year. Th anks to continued positive operational and investment performance total assets increased $66 million during fi scal 2006. Th is growth was not fueled by taking on signifi cant levels of additional debt, but by generating capital from our own

operations and investment returns. Th e University’s net assets increased $51 million to a fi scal year-end record of $856 million, $636 million of which remains unrestricted.

Th e University’s investments and cash also increased $51 million during fi scal 2006 and remain a stable source of operational resources. During fi scal 2006, our endowment produced a 14 percent total return, which was well above the 11 percent average earned by endowments over $1 billion during 2006. We may be tempted to attribute our returns solely to our good stewardship, but there can be no doubt that our results also refl ect God’s blessing on this institution.

Supportive friends and alumni as well as favorable economic and business conditions have helped bolster our endowment. At the end of fi scal 2006, University investment funds functioning as endowment totaled $521 million and generated $25 million of operational support during fi scal 2006. Increasing our endowment through investment returns as well as new gifts from friends and alumni helped us expand fi nancial aid to our students and provide ongoing support for other University operations.

Th e University’s long-term obligations increased slightly from one year ago, totaling $210 million at the end of fi scal 2006. Th is increase was a result of refi nancing over $106 million of our debt, and realizing present-value interest savings of nearly $6 million. During the past several years, we have boldly used long-term obligations to further our strategic goals at opportune times. While we may issue additional debt should a warranted need arise, our intent is to increasingly turn to our friends and alumni rather than Wall Street to fund our capital-intensive aspirations—more and improved student housing; more and improved places for our students to gather; and reinvigorating many of the buildings on the Malibu campus that have provided nearly 25 years of service.

We continue to enroll approximately 8,000 students in our fi ve colleges and schools, and enjoy signifi cant student demand for most of our academic off erings. To illustrate,

Pa u l L a s i t e r

C h i e f F i n a n c i a l O f f i c e r

Rudyard Kipling wrote that we are “humble

because of knowledge and strong because

of sacrifi ce.” At Pepperdine, there is no

truer standard by which to measure

our strength. Th e purpose of an annual

report is primarily to present the fi nancial

health of an institution. In that regard,

Pepperdine has never been stronger.

But as you have seen in the previous

pages, a fi nancial standard alone does

not adequately express the source of our

strength.

s t R E n G t H t H R o U G H s A C R I F I C E

REVEnUEs

net student tuition and fees 62%

instruction and research 36%

academic support 12%student services 16%

public service 5%

auxiliary enterprises 8%

management and general 19%

membership development 1% fundraising 3%

room and board 10%

private gifts and grants 11%

endowment support 10%

government grants 1%sales and service 3% other revenue 3%

EXPEnsEs

net student tuition and fees 62%

instruction and research 36%

academic support 12%student services 16%

public service 5%

auxiliary enterprises 8%

management and general 19%

membership development 1% fundraising 3%

room and board 10%

private gifts and grants 11%

endowment support 10%

government grants 1%sales and service 3% other revenue 3%

2002 2003 2004 2005 2006

2002 2003 2004 2005 2006

2002 2003 2004 2005 2006

totAL AssEts (in 000s)

nEt AssEts (in 000s)

EndoWMEnt AssEts (in 000s)


Seaver College accepted just 28 percent of the approximately 8,000 student applications for admission it received for the Fall 2006 term. The number of students enrolled at the University is extremely important since our operating revenue is primarily student-related (items such as tuition, fee, and auxiliary revenue). During fiscal 2006, these items accounted for approximately 75 percent of the University’s total revenue.

While we are clearly dependent on student-related revenues, we have made progress in increasing other revenue sources, such as endowment support and private gifts and grants. During fiscal 2006, private gifts from friends and alumni who support our mission more than doubled to nearly $28 million. We fully appreciate the charge given to us to put their generous gifts to work in the best way possible to benefit our students.

Whether the source of revenue is from our students, endowment support, or gifts from friends and alumni, we know we must continue to increase our investment in our student’s academic and community experience. Accordingly, we make every effort to direct the University’s resources to improving academic, social, and spiritual programs. During fiscal 2006, the University’s instruction, research, academic support, and student service expenses increased by approximately $4 million, to total approximately $146 million. It is especially gratifying to note that 93 percent of each net tuition and fee dollar expended is directed to these mission-critical areas.

Pepperdine University continues to be blessed with financial strength and the ability to choose its path in the world of Christianity and academia. Our present challenge calls us to build from the strength we have garnered thus far and seize the opportunities God places before us all.

Paul L asiter Chief Financial Of f icer


This financial information is summarized from the July 31, 2006, Consolidated Financial Statements of Pepperdine University, which have been audited by our independent auditors. The statements were prepared in accordance with generally accepted accounting principles applicable to colleges and universities. A complete copy of the audited financial statements is available free of charge upon request from the Office of the Controller.

In the spirit of the recent Sarbanes-Oxley legislation (not yet required of nonprofit corporations) and consistent with our ongoing efforts to improve corporate governance, the Board of Regents has established an Audit Committee and approved its charter. Five independent members of the Board of Regents comprise the Audit Committee, which meets at least quarterly and is responsible for the selection and retention of the independent auditors, as well as the determination of their independence. The Audit Committee also reviews the University’s systems of internal control and oversees the auditing services function. Finally, the Audit Committee has established a system to receive and investigate confidential and anonymous communications concerning the processing and presentation of financial information.

PePPerdine uniVersitYConsolidated Statements of Financial Position

at July 31, 2006 and 2005

2006 2005

ASSETS

Cash and cash equivalents $ 1,226 $ 19,578 Student receivables, less allowance for doubtful accounts of $1,068 and $966, respectively 3,954 3,646 Other accounts receivable 4,530 3,112 Student loans, less allowance for loan losses of $1,951 and $2,030, respectively 27,828 25,870 Contributions receivable, net 21,022 15,588 Prepaid expenses, inventories, and other assets 9,135 7,382 Investments 726,919 657,792 Assets held as trustee or agent 95,693 91,721 Property, facilities, and equipment, net 294,259 293,773 Total assets $ 1,184,566 $ 1,118,462

LIABILITIES AND NET ASSETS Liabilities: Accounts payable and accrued liabilities $ 21,215 $ 22,094 Accrued salaries and wages 3,877 3,689 Student deposits, advance payments, and deferred revenue 8,779 7,282 U.S. government funded student loans 14,837 14,893 Trust and agency obligations 70,666 63,602 Long-term obligations 209,563 202,724 Total liabilities 328,937 314,284

Net assets: Unrestricted 636,266 598,081 Temporarily restricted 68,482 64,268 Permanently restricted 150,881 141,829 Total net assets 855,629 804,178

Total liabilities and net assets $ 1,184,566 $ $1,118,462

In 000s


Temporarily Permanently Unrestricted Restricted Restricted Total Total

REVENUES Student tuition and fees $ 210,894 $ - $ - $ 210,894 $ 198,744 Less student aid (53,997) - - (53,997) (50,169) Net student tuition and fees 156,897 - - 156,897 148,575

Room and board 24,362 - - 24,362 22,970 Private gifts and grants 9,204 8,656 9,924 27,784 13,011 Endowment support 24,466 144 384 24,994 23,264 Government grants 2,690 - - 2,690 2,879 Sales and services 8,787 - - 8,787 8,722 Other revenue 5,648 1,872 95 7,615 8,609 Net assets released from restriction 7,185 (7,185) - - - Total revenues 239,239 3,487 10,403 253,129 228,030

EXPENSES Instruction and research 81,463 - - 81,463 80,661 Academic support 27,220 - - 27,220 27,772 Student services 36,913 - - 36,913 33,253 Public service 10,015 - - 10,015 9,806 Auxiliary enterprises 17,664 - - 17,664 17,558 Management and general 43,696 - - 43,696 40,608 Membership development 3,037 - - 3,037 1,971 Fundraising 6,053 - - 6,053 6,575 Total expenses 226,061 - - 226,061 218,204

Change in net assets before nonoperating revenues and expenses 13,178 3,487 10,403 27,068 9,826

NONOPERATING REVENUES AND EXPENSES Adjustment of actuarial liability - (493) 161 (332) 3,919 Investment income: Dividends 2,633 - - 2,633 2,646 Interest 3,199 418 314 3,931 4,242 Other 1,510 - (206) 1,304 229 Net realized and unrealized gains (losses) from investments 43,758 1,139 (2,441) 42,456 67,213 Appropriations from endowment (16,581) - - (16,581) (15,963) Other (5,554) (337) 821 (5,070) 1,682 Total nonoperating revenues and expenses 28,965 727 (1,351) 28,341 63,968

Change in net assets before cumulative effect of change in accounting principle 42,143 4,214 9,052 55,409 73,794 Cumulative effect of change in accounting principle (3,958) - - (3,958) - Change in net assets 38,185 4,214 9,052 51,451 73,794

Net assets at beginning of year 598,081 64,268 141,829 804,178 730,384 Net assets at end of year $ 636,266 $ 68,482 $ 150,881 $ 855,629 $ 804,128

2006 2005

In 000’s

PePPerdine uniVersitYConsolidated Statements of Activities

For the years ending July 31, 2006 and 2005


PEPPERdInE UnIVERsIty BoARd oF REGEnts

2006-2007

EDWIn L. BIGGErS

chairPresident (Retired) Hughes Missile Group

roBErT G. JACkSon

Vice chairPresident (Retired) Ford Motor Land Development

SuSAn F. rICE

secretaryPrincipal SFR Consulting

FrEDErICk L. rICkEr

assistant secretarySector Vice President Northrup Grumman Space Technology

WILLIAm S. BAnoWSky

President Emeritus Pepperdine University

AnDrEW k. BEnTon

President Pepperdine University

SHEILA k. BoST

Certified Family Life Education Primary Relationships Marriage & Family Intern, Private Practice

VIrGInIA B. BrAun

JAnICE r. BroWn

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

JoSE A. CoLLAzo

Chairman of the Board, President and Chief Executive Officer BT Infonet

JErry S. Cox

President Cox & Perkins Exploration, Inc.

W. L. FLETCHEr III

Owner Park Centre Properties, LLC

mATTHEW k. FonG

President Strategic Advisory Group

GEorGE ForEmAn

LInDA m. GAGE

TErry m. GILES

Owner Giles Enterprises

GLEn A. HoLDEn

United States Ambassador (Retired)

GAIL E. HopkInS

Orthopaedic Surgeon

JoHn D. kATCH

Regional Manager, Public Affairs (Retired) Southern California Edison Company

ArTHur G. LInkLETTEr

Chairman Linkletter Enterprises

EFF W. mArTIn

Managing Director (Retired) Goldman Sachs & Company

PEPPERdInE UnIVERsIty BoARds

The Board of Regents is the legal governing

body and chief policy board of the University.

Life Regents are recognized and honored for

their extraordinary service as past regents. The

University Board is a national advisory group that

provides additional guidance and leadership. The

University administration, working in tandem with

the governing and advisory boards, shapes the

direction of the University. The guidance provided

by these distinguished and committed men and

women is greatly valued.


mICHAEL T. okABAyASHI

Partner Ernst & Young

TImoTHy C. pHILLIpS

Chief Executive Officer Phillips and Company Securities, Inc.

JAmES r. porTEr

Principal Porter Capital Partners

roSEmAry rAITT

General Partner KVI Corporation and FKC

ruSSELL L. rAy, Jr.

Airline and Aerospace Companies Executive (Retired) Chairman, Executive Committee World Airways, Inc.

TrAVIS E. rEED

President Reed Investment Corporation

CAroL rICHArDS

B. JoSEpH rokuS

Chairman Packaging Plus

CHArLES B. runnELS

Chancellor Emeritus Pepperdine University

roSA mErCADo SpIVEy

Physician Los Angeles Unified School District

WILLIAm W. STEVEnS

Chairman of the Board (Retired) Triad Systems Corporation

STEpHEn m. STEWArT

President Stewart Brothers Drilling Company

WILLIAm H. SWAnSon

Chief Executive Officer and President Raytheon Company

AuGuSTuS TAGLIAFErrI

Chairman and President Financial Structures, Inc.

THomAS J. TrImBLE

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

roBErT L. WALkEr

Vice President for Development Texas A&M University

EDWArD V. yAnG

Chairman Cross Shore Acquisition Corporation

LIFE REGEnts

Joe R. BarnettLodwrick M. CookRobert R. DocksonGerald R. FordHari N. HarilelaJerry E. HudsonJerve M. JonesRichard M. ScaifeFlora Laney ThorntonAlton C. Watson William R. WaughJ. McDonald WilliamsHelen M. Young

UnIVERsIty BoARd

Pat Boone Chair Robert BarberaThomas J. Barrack, Jr.William BeazleyAndrew K. BentonA. Ronald BerrymanJohn S. BroomeViggo ButlerRod CampbellRobert M. DavidsonEdmond R. DavisK. Duane DenneyRobert E. DudleyMaureen Duffy-LewisMark W. DundeePaul G. FlynnShirley Reid FrahmHank FrazeeG. Louis Graziadio IIIBart M. Hackley, Jr.Mary HeckmannBruce HerschensohnThomas E. HigginsRobert W. P. HolstromWilliam T. HustonCarl J. LambertJohn T. LewisIan R. LindeMuriel LipseyJim LongSeiji MasudaGregory R. McClintock

Glen McDanielCarl MintonE. Chadwick MooneyVelma V. MorrisonWilliam S. MortensenAaron NorrisStephen E. OlsonTerry Hamilton QuimbyFrank E. RaabJohn RatzenbergerKelly RobertsCharles B. RunnelsRichard C. SeaverMargaret SheppardRichard L. StackWilliam StephensDorothy StrausTerralynn Walters SwiftCharles H. TaylorRobert A. VirtueLew O. WardEllen WeitmanLarry L. WestfallJeremy N. WhiteGary L. Wilcox

PEPPERdInE UnIVERsIty BoARd oF REGEnts

2006-2007

EDWIn L. BIGGErS

chairPresident (Retired) Hughes Missile Group

roBErT G. JACkSon

Vice chairPresident (Retired) Ford Motor Land Development

SuSAn F. rICE

secretaryPrincipal SFR Consulting

FrEDErICk L. rICkEr

assistant secretarySector Vice President Northrup Grumman Space Technology

WILLIAm S. BAnoWSky

President Emeritus Pepperdine University

AnDrEW k. BEnTon

President Pepperdine University

SHEILA k. BoST

Certified Family Life Education Primary Relationships Marriage & Family Intern, Private Practice

VIrGInIA B. BrAun

JAnICE r. BroWn

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

JoSE A. CoLLAzo

Chairman of the Board, President and Chief Executive Officer BT Infonet

JErry S. Cox

President Cox & Perkins Exploration, Inc.

W. L. FLETCHEr III

Owner Park Centre Properties, LLC

mATTHEW k. FonG

President Strategic Advisory Group

GEorGE ForEmAn

LInDA m. GAGE

TErry m. GILES

Owner Giles Enterprises

GLEn A. HoLDEn

United States Ambassador (Retired)

GAIL E. HopkInS

Orthopaedic Surgeon

JoHn D. kATCH

Regional Manager, Public Affairs (Retired) Southern California Edison Company

ArTHur G. LInkLETTEr

Chairman Linkletter Enterprises

EFF W. mArTIn

Managing Director (Retired) Goldman Sachs & Company


As A CHRIstIAn UnIVERsIty, PEPPERdInE AFFIRMs

Th at god is

Th at god is revealed uniquely in christ

Th at the educational process may not, with impunity, be divorced from the divine process

Th at the student, as a person of infi nite dignity, is the heart of the educational enterprise

Th at the quality of student life is a valid concern of the university

Th at truth, having nothing to fear from investigation, should be pursued relentlessly in every discipline

Th at spiritual commitment, tolerating no excuse for mediocrity, demands the highest standards of academic excellence

Th at freedom, whether spiritual, intellectual, or economic, is indivisible

Th at knowledge calls, ultimately, for a life of service.

© All rights reserved, 2006 by Pepperdine University

24255 Pacifi c Coast Highway, Malibu, California 90263

310.506.4000

www.pepperdine.edu

The 2006 Annual Report was produced by the Offi ce of Public Affairs.

KEITH HINKLE

Vice President for Advancement and Public Affairs

Editor/Writer

RICK GIBSON Associate Vice President for Public Affairs

Writers

JERRY DERLOSHON Director of Public Relations and News

MEGAN HUARD Writer/Editor, Public Relations and News

Copy Editor

VINCENT WAY Manager of Editorial Services, Public Relations and News

Art Direction and Design

KEITH LUNGWITZ Senior Art Director, University Communications

Photography

RON HALL University Photographer, University Communications

BRETT SIZEMORE Director of Creative Services, University Communications

Production Management

BRIAN KEARNS Production Manager, University Communications

Additional Editorial Assistance

MARCUS RILEY Assistant to Associate Vice President, Public Affairs

MOLLY DROBNICK Senior Public Relations Specialist, Public Relations and News

Documents

Michael Lasley