SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
[X] Annual report pursuant to Section 15 (d) of the Securities
Exchange Act of 1934 (No fee required)
For the fiscal years ended December 31, 2000 and 1999
OR
[ ] Transition report pursuant to SECTION 15 (d) of the Securities Exchange Act
of 1934 (No fee required)
For the transition period from __________ to ____________
Commission file number 33-59853
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
NORTHROP GRUMMAN SAVINGS AND INVESTMENT PLAN
B. Name of issuer of the securities held pursuant to the Plan and the
address of its principal executive office:
NORTHROP GRUMMAN CORPORATION
1840 Century Park East
Los Angeles, California 90067
1
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
NORTHROP GRUMMAN SAVINGS AND INVESTMENT PLAN
/s/ Gary W. McKenzie
_____________________________________
Dated: June 28, 2001 By Gary W. McKenzie
Vice President-Tax
2
NORTHROP GRUMMAN SAVINGS AND INVESTMENT PLAN
TABLE OF CONTENTS
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Page
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Plan Benefits as of
December 31, 2000 and 1999 2
Statement of Changes in Net Assets Available for Plan Benefits for the
Year Ended December 31, 2000 3
Notes to Financial Statements 4-10
SUPPLEMENTAL SCHEDULE -
Assets Held for Investment Purposes at December 31, 2000 11-39
3
INDEPENDENT AUDITORS' REPORT
To the Administrative Committee of the
Northrop Grumman Savings and Investment Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Northrop Grumman Savings and Investment Plan (the "Plan") as of
December 31, 2000 and 1999, and the related statement of changes in net assets
available for plan benefits for the year ended December 31, 2000. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for plan benefits as of December 31, 2000 and
1999, and the changes in net assets available for plan benefits for the year
ended December 31, 2000, in conformity with accounting principles generally
accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets held
for investment purposes at December 31, 2000, is presented for the purpose of
additional analysis and is not a required part of the basic financial statements
but is supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedule is the responsibility of the
Plan's management. Such supplemental schedule has been subjected to the auditing
procedures applied in our audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects when considered in relation
to the basic financial statements taken as a whole.
/s/ Deloitte & Touche LLP
--------------------------
Los Angeles, California
June 27, 2001
NORTHROP GRUMMAN SAVINGS AND INVESTMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 2000 AND 1999
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2000 1999
ASSETS:
Investments (Notes B, C, D, and E) $ 3,988,957,330 $ 4,002,157,293
Receivables:
Participant contribution 3,639,865 352,316
Employer contribution 1,370,709 178,265
Due from broker for securities sold 26,052,697 1,945,217
Dividends and interest receivable 4,894,710 4,233,263
---------------- ---------------
Total assets 4,024,915,311 4,008,866,354
---------------- ---------------
LIABILITIES:
Accrued expenses 3,282,800 3,554,439
Due to broker for securities purchased 59,459,797 20,388,536
---------------- ---------------
Total liabilities 62,742,597 23,942,975
---------------- ---------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $ 3,962,172,714 $ 3,984,923,379
================ ===============
See notes to financial statements.
-2-
NORTHROP GRUMMAN SAVINGS AND INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 2000
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INVESTMENT INCOME:
Net depreciation in fair value of investments (Notes B, C, and D) $ (35,106,079)
Plan interest in Northrop Grumman Stable Value Master Trust investment income 55,987,708
(Notes B, C, D, and E)
Interest 20,514,858
Dividends 52,073,059
----------------
Total investment income 93,469,546
Less investment expenses 4,634,645
----------------
Net investment income 88,834,901
----------------
CONTRIBUTIONS:
Participant 154,392,701
Employer 56,575,057
----------------
Total contributions 210,967,758
----------------
Total additions 299,802,659
----------------
DEDUCTIONS:
Benefits paid to participants 701,178,869
Administrative expenses 9,599,208
----------------
Total deductions 710,778,077
----------------
TRANSFER FROM OTHER PLANS (Note A) 388,224,753
----------------
NET DECREASE (22,750,665)
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
Beginning of year 3,984,923,379
----------------
End of year $ 3,962,172,714
================
See notes to financial statements.
-3-
NORTHROP GRUMMAN SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2000 AND 1999
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A. DESCRIPTION OF THE PLAN
The following description of the Northrop Grumman Savings and Investment
Plan (the "Plan") provides only general information. Participants should
refer to the Plan document for a more complete description of the Plan's
provisions.
General - The Northrop Grumman Savings and Investment Plan is a qualified
profit-sharing and employee stock ownership plan sponsored by Northrop
Grumman Corporation (the "Company"). It was established February 1, 1962,
and restated effective January 1, 1998, covering all hourly and salaried
employees who are at least 18 years old, citizens or residents of the
United States of America, and are not covered under another plan. It is
subject to the provisions of the Employee Retirement Income Security Act
of 1974 ("ERISA").
On September 1, 1999, the Northrop Grumman Commercial Aircraft Division
Salaried Savings and Investment Plan (the "Former Plan") was merged with
the Plan and the Former Plan participants became eligible for
participation in the Plan.
On December 18, 1999, participants in the Employee Salary Deferral Plan of
Logicon, Inc.; the Employees Profit Sharing Plan of Logicon, Inc.; the
Employees Profit Sharing Plan of Logicon Eagle Technology, Inc.; the
Logicon Syscon, Inc. Profit Sharing Plan; the INRI 401(k) and Profit
Sharing Plan; and the INRI Money Purchase Plan (collectively, the "Logicon
Plans"), became eligible for participation in the Plan. On July 28, 2000,
the Logicon Plans were merged with the Plan.
Contributions - Plan participants may contribute between 1 percent and 18
percent of eligible compensation in increments of 1 percent, on a
tax-deferred (before-tax) basis, an after tax-basis, or a combination
thereof. An active participant may change the percentage of his or her
contributions. Contributions are subject to certain limitations.
The Company's matching contributions are as follows:
Employee Contribution Company Match
First 2 percent of eligible compensation 100 %
Next 2 percent of eligible compensation 50 %
Next 4 percent of eligible compensation 25 %
Contribution over 8 percent 0 %
Participant Accounts - A separate account is maintained for each
participant. Each participant's account is credited with the participant's
contribution and allocations of (a) the Company's contribution, (b) Plan
earnings, and (c) administrative expenses. Allocations are based on
participant earnings on account balances, as defined in the Plan document.
The benefit to which a participant is entitled is the benefit that can be
provided from the participant's vested account.
Vesting - Plan participants are fully vested (100 percent) at all times in
the balance of their accounts (both employee and employer contributions),
none of which may be forfeited for any reason.
-4-
Investment Options - Upon enrollment in the Plan, each participant may
direct that his or her employee contributions and Company matching
contributions, in 1 percent increments, be invested in any of the
following eleven investment funds.
U.S. Equity Fund - The U.S. Equity Fund consists predominantly of
holdings in large- and medium-sized U.S. company stocks. The fund's
objectives are capital appreciation over the long term, along with
current income (dividends). The fund's stock investments are selected by
independent professional investment managers appointed by the Plan's
Investment Committee.
U.S. Fixed Income Fund - The Fixed Income Fund consists of holdings in
marketable, fixed-income securities rated within the three highest
investment grades (i.e., A or better) assigned by Moody's Investor
Services or Standard & Poor's Corporation, U.S. Treasury or federal
agency obligations, or cash-equivalent instruments. The fund is broadly
diversified and maintains an average maturity of 10 years. The
securities are selected by independent professional investment managers
appointed by the Plan's Investment Committee.
Northrop Grumman Stable Value Master Trust - The Northrop Grumman Stable
Value Master Trust (the "Master Trust," Note D) is diversified among
U.S. government securities and obligations of government agencies,
bonds, short-term investments, cash, and investment contracts issued by
insurance companies and banks. The Master Trust is managed by an
independent professional investment manager appointed by the Plan's
Investment Committee.
Northrop Grumman Fund - The Northrop Grumman Fund invests exclusively in
Northrop Grumman Corporation common stock.
Balanced Fund - The Balanced Fund is a fully diversified portfolio
consisting of fixed portions of five of the savings plan funds (Stable
Value Fund, U.S. Equity Fund, Fixed Income Fund, International Equity
Fund, and Small Cap Fund). The fund seeks to exceed the return of the
bond market and approach the return of the stock market, but with less
risk than an investment only in stocks.
International Equity Fund - The International Equity Fund consists of
stocks of a diversified group of companies in developed countries
outside the United States. The fund's objectives are capital
appreciation over the long term, along with current income (dividends).
Small Cap Fund - The Small Cap Fund consists of stocks of a diversified
group of small-capitalization U.S. companies. The stocks purchased by
the fund typically have a market capitalization similar to companies in
the Russell 2001 Index, which are companies with an average market
capitalization of $500 million. The fund's objective is capital
appreciation over the long term, rather than current income (dividends).
Equity Index Fund - The Equity Index Fund consists of a diversified
portfolio of stocks, as defined by an established market index. These
stocks are selected by independent professional investment managers
appointed by the Plan's Investment Committee. This fund is designed to
provide results that closely match those of the Standard & Poor's 500
Stock Index.
High Yield Bond Fund - The High Yield Bond Fund consists of
below-investment-grade securities (i.e., BBB or lower) assigned by
Moody's Investor Services or Standard & Poor's Corporation. The fund
seeks to exceed the return of the high-quality (investment grade) bond
market.
-5-
International Bond Fund - The International Bond Fund consists of
non-U.S. dollar denominated debt instruments rated within the three
highest investment grades (i.e., A or better) by Moody's Investor
Services or Standard & Poor's Corporation. The fund's objective is to
provide a higher level of income and capital appreciation than the
domestic fixed income market.
Emerging Market Fund - The Emerging Market Fund consists of a
diversified portfolio of stocks issued by companies based in developing
countries. The fund's objective is capital appreciation over the long
term.
Schwab Personal Choice Retirement Account - The Schwab Personal Choice
Retirement Account consists of mutual funds from over 300 mutual fund
companies.
Participants may change their investment options daily.
Contributions deposited into each investment fund buy a number of units in
each fund. The value of each participant's account within each fund
depends on two factors: (1) the number of units purchased to date, and (2)
the current value of each unit. Unit values are updated daily prior to any
plan transactions, including contributions, withdrawals, distributions,
and transfers.
Participant Notes Receivable - Participants may borrow from their fund
accounts a minimum of $1,000, up to a maximum equal to the lesser of
$50,000 or 50 percent of their account balance reduced by the highest
outstanding balance over the past 12 months. A participant may not have
more than two outstanding loans at any given time. Loans will be prorated
across all investment funds and are secured by the balance in the
participant's account. The interest rate is fixed on the first business
day of each month at the prime rate of the Plan's trustee plus 1 percent.
Repayments are made from payroll deductions (for active employees) or
personal check (for former employees or employees on a leave of absence).
The maximum loan period is five years, or ten years for a loan used to
acquire a dwelling that is to be the principal residence of the
participant. Loans may be prepaid in full; partial prepayments are not
permitted.
Payment of Benefits - On termination of service due to death, disability,
or retirement, a participant may receive a lump-sum payment of his or her
account balance. A participant may also delay his or her lump-sum payment
until the age of 70 1/2, if the account balance exceeds $5,000.
Distribution from the Northrop Grumman Fund will be paid in cash, stock,
or a combination of both, depending on the participant's election.
Withdrawals - A participant may withdraw all or a portion of his or her
after-tax contributions (plus earnings) at any time. In addition, a
participant may withdraw all or a portion of his or her Company matching
contribution (plus earnings) at any time. A participant may withdraw all
or a portion of his or her before-tax contributions for any reason after
reaching age 59 1/2, or prior to reaching age 59 1/2 in the case of
hardship (as described in the Plan document).
B. SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting - The financial statements of the Plan are prepared
under the accrual basis of accounting.
Use of Estimates - The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets, liabilities, and changes therein, and
disclosure of contingent assets and liabilities. Actual results could
differ from those estimates.
-6-
Investment Valuation and Income Recognition - In the accompanying
statement of net assets available for plan benefits as of December 31,
2000, the Plan's investments are stated at fair value, except for the
investments in insurance and investment contracts included in the Master
Trust, which are stated at contract value (see Note E). Quoted market
prices are used to determine the fair value of the investments. Notes
receivable from participants are valued at cost, which approximates fair
value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are recorded
on the ex-dividend date.
Broker commissions, transfer taxes, and other charges and expenses
incurred in connection with the purchase, sale, or other disposition of
securities or other investments held by the Master Trust are added to the
cost of such securities or other investments, or are deducted from the
proceeds of the sale or other disposition thereof, as appropriate. Taxes
(if any) on the assets of the funds, or on any gain resulting from the
sale or other disposition of such assets, or on the earnings of the funds,
are apportioned in such a manner as the trustee deems equitable among the
participants and former participants (if any) whose interests in the Plan
are affected, and the share of such taxes apportioned to each such person
is charged against his or her account in the Plan.
Payment of Benefits - Benefits are recorded when paid. As of December 31,
2000 and 1999, benefits payable in cash to participants were $104,046 and
$111,924, respectively.
New Accounting Pronouncements - In June 1998, the Financial Accounting
Standards Board issued Statement of Financial Accounting Standards
("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging
Activities," as amended by SFAS No. 138, "Accounting for Certain
Derivative Instruments and Certain Hedging Activities." SFAS No. 133
establishes accounting and reporting standards for derivative instruments
and for hedging activities. It requires that all derivatives, including
those embedded in other contracts, be recognized as either assets or
liabilities and that those financial instruments be measured at fair
value. The Plan is required to adopt SFAS No. 133, as amended, for the
plan year 2001. The Plan administrator has not yet quantified the impact
of adopting SFAS No. 133, as amended, on the Plan's 2001 financial
statements.
C. INVESTMENTS
The following presents investments that represent 5 percent or more of the
Plan's net assets, as of December 31, 2000 and 1999:
2000 1999
Northrop Grumman Corporation common stock, 4,078,898 $ 338,548,534 $ 257,038,643
and 4,754,472 shares, respectively
Plan Interest in the Northrop Grumman 873,708,082 950,455,786
Stable Value Master Trust
Charles Schwab Personal Choice Retirement Account 291,083,607 -
-7-
During 2000, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year) appreciated
in value by $20,881,629 as follows:
Common stock $ 15,998,945
Debt obligations 11,878,508
Mutual funds (62,983,532)
-------------
Net depreciation in fair value of investments (35,106,079)
Plan interest in Northrop Grumman Stable Value
Master Trust investment income 55,987,708
-------------
$ 20,881,629
============
D. INTEREST IN NORTHROP GRUMMAN STABLE VALUE MASTER TRUST
A portion of the Plan's investments is in the Master Trust, which was
established for the investment of the assets of the Plan and two other
Northrop Grumman Corporation sponsored savings plans. Each participating
savings plan has an undivided interest in the Master Trust. The assets of
the Master Trust are held by Primco Capital Management. At December 31,
2000 and 1999, the Plan's interest in the net assets of the Master Trust
were approximately 68 percent and 67 percent, respectively. Investment
income and administrative expenses relating to the Master Trust are
allocated among the participating plans based upon average monthly
balances invested by each plan.
Investments held in the Master Trust as of December 31, 2000 and 1999 were
as follows (in thousands):
2000 1999
Guaranteed and Synthetic Investment Contracts (at contract
value) $ 1,275,250 $ 1,379,667
Northrop Retirement Savings Temporary Investment Fund 14,627 33,264
----------- -----------
Total $ 1,289,877 $ 1,412,931
=========== ===========
Investment income of the Master Trust totaled $84,005,912 for the year
ended December 31, 2000.
E. INVESTMENT CONTRACTS WITH INSURANCE COMPANIES
All investment contracts held by the Master Trust are considered to be
fully benefit responsive and, therefore, are reported at contract value.
Contract value represents contributions made under the contract, plus
interest at the contract rate, less withdrawals and administrative
expenses.
The Master Trust holds wrapper contracts in order to manage the market
risk and return of certain securities held by the Master Trust. The
wrapper contracts generally modify the investment characteristics of
certain underlying securities similar to those of guaranteed investment
contracts. Each wrapper contract and its related underlying assets are
referred to as a Synthetic Investment Contract ("SIC") and are recorded at
contract value. The SICs held by the Master Trust had a contract value
totaling $1,264,054,000 and $1,324,045,000 at December 31, 2000 and 1999,
respectively. The fair value of the underlying assets related to the
wrapper contracts totaled $1,292,226,000 and $1,306,787,000 as of December
31, 2000 and 1999, respectively.
-8-
The fair value of the non-synthetic guaranteed investment contracts
totaled $10,987,000 and $57,491,000 at December 31, 2000 and 1999,
respectively.
The following information is disclosed for the investment contracts within
the Master Trust as of December 31, 2000 and 1999:
2000 1999
Average yield of assets on December 31 6.64 % 6.25 %
Average crediting interest rate of assets at December 31 6.64 % 6.25 %
Average duration 3.20 years 2.77 years
F. TRANSACTIONS WITH PARTIES-IN-INTEREST
In Plan management's opinion, fees paid during the year for services
rendered by parties-in-interest were based upon customary and reasonable
rates for such services.
G. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of the
Plan's termination, the interests of all participants in their accounts
are 100 percent vested and nonforfeitable.
H. INCOME TAXES
The Internal Revenue Service has determined and informed the Company by
letter dated April 25, 2000, that the Plan, as amended, and related trust
are designed in accordance with applicable sections of the Internal
Revenue Code (the "IRC"). The plan administrator and the Plan's counsel
believe that the Plan is currently being operated in compliance with the
applicable requirements of the IRC.
I. DESCRIPTION OF PLAN MERGERS
Effective September 1, 1999, plan assets of $248,055,395 of the Former
Plan were merged into the Plan. The transferred net assets have been
recognized in the accounts of the Plan at their balances as previously
carried in the accounts of the Former Plan.
Effective July 28, 2000, plan assets of $388,224,753 of the Logicon Plans
were merged into the Plan. The transferred net assets have been recognized
in the accounts of the Plan at their balances as previously carried in the
accounts of the Logicon Plans.
J. SUBSEQUENT EVENTS
On February 23, 2001, the Northrop Grumman Naval Systems Division -
Cleveland Facility Salaried Employees 401(k) Savings Plan and Northrop
Grumman Naval Systems Division - Cleveland Facility Hourly Employees
401(k) Savings Plan (collectively, the "Naval Plans") were merged with the
Plan and the Naval Plans participants became eligible for participation in
the Plan.
On April 12, 2001, the Northrop Grumman Electronic Sensors and Systems
Sector Savings and Investment Plan (the "ESSS Plan") was merged with the
Plan and the ESSS Plan participants became eligible for participation in
the Plan.
-9-
On June 16, 2001, participants in the Data Procurement Corporation, Inc.
401(k) Retirement Plan became eligible for participation in the Plan.
On June 22, 2001, the Employees' Profit Sharing Plan of Logicon
Geodynamics, Inc. (the "Geodynamics Plan") was merged with the Plan and
Geodynamics Plan participants became eligible for participation in the
Plan.
-10-
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2000
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(a) (b) (c) (d) (e)
Identity of Issuer, Borrower,
Lessor or Similar Party Description of Investment Cost Current Value
* Northrop Grumman Corporation Participation in the Northrop Grumman $ 797,246,147 $ 873,708,082
Stable Value Master Trust
* Northrop Grumman Corporation Common Stock 111,798,080 338,548,534
Charles Schwab Personal Choice Retirement Account 291,083,607 291,083,607
* State Street Bank & Trust Co Short Term Investment Fund 105,794,999 105,794,999
S&P 500 Flagship Series A Flagship S&P 500 Index Fund 87,984,464 86,314,206
* Northrop Grumman Corporation Participant Loans 51,565,112 51,565,112
SSGA CME9 Bond Market Index Fund Series A 47,983,255 50,231,126
Dresdner Rcm Midcap Fd Midcap Fund Class 1 61,662,526 42,772,513
Citigroup Inc Common Stock 28,211,543 42,753,763
Barclays Global Invs Fds Inc S&P 500 Stock Fund 45,129,416 42,056,706
Capital Guardian Tr Co Small Cap Daily Fund 41,603,412 40,840,389
JP Morgan Smart Index Fund Common Stock 43,628,848 38,243,801
Pfizer Inc Common Stock 16,789,454 37,316,350
General Elec Co Common Stock 18,643,131 32,942,650
Sit Mut Fds Inc International Growth Fund 39,672,690 30,134,994
Exxon Mobil Corp Common Stock 21,941,428 27,762,882
PIC Small Cap Inv Fund Debt Common Stock 20,939,668 27,444,463
Capital Guardian Non US Developed Market Equity 27,182,008 27,261,477
American Intl Group Inc Common Stock 14,338,824 26,221,272
Foreign Discover Rowe T Price Trust Fund 22,390,289 22,643,601
Cisco Sys Inc Common Stock 13,190,152 22,284,450
Schroder Intl Equity Fund Common Stock 17,189,203 18,678,493
Merck & CO Inc Common Stock 12,759,646 17,620,225
Viacom Inc Class B 14,139,555 17,002,835
SBA Communications Inc Common Stock 15,941,112 16,908,275
Federal Natl Mtg Assn Common Stock 11,249,379 16,135,500
Tyco Intl Ltd New Common Stock 7,713,490 15,939,600
Home Depot Inc Common Stock 9,886,016 15,730,206
Pharmacia Corp Common Stock 13,361,389 15,331,008
Johnson & Johnson Common Stock 12,502,699 15,192,038
Bank Amer Corp Common Stock 15,362,724 15,159,944
Amgen Inc Common Stock 7,335,020 14,788,744
Qwest Communications Intl Inc Common Stock 14,848,787 14,457,010
Wal Mart Stores Inc Common Stock 9,584,678 14,104,688
Philip Morris Cos Inc Common Stock 9,156,840 13,653,200
-11-
Lilly Eli & Co Common Stock $ 9,823,102 $ 12,851,931
Microsoft Corp Common Stock 15,149,887 12,669,838
Bank One Corp Common Stock 12,288,876 12,661,263
Alcoa Inc Common Stock 9,814,299 12,445,250
Procter & Gamble Co Common Stock 9,479,418 12,314,688
AT&T Corp Com Liberty Media Grp Class A 11,698,227 11,971,619
American Express Co Common Stock 11,132,014 11,855,513
EMC Corp Mass Common Stock 5,889,461 11,843,650
Verizon Communications Common Stock 11,315,749 11,556,319
American Home Products Corp Common Stock 9,629,981 11,464,420
International Business Machs Common Stock 11,036,623 11,347,500
Time Warner Inc Common Stock 9,443,816 11,341,304
Merrill Lynch & Co Inc Common Stock 6,826,348 11,257,756
USA Ed Inc Common Stock 4,777,602 11,131,600
Texas Instrs Inc Common Stock 9,043,742 11,107,069
Schering Plough Corp Common Stock 9,834,624 10,890,325
Schlumberger Ltd Common Stock 8,561,343 10,767,581
Medtronic Inc Common Stock 866,250 10,626,000
Hewlett Packard Co Common Stock 12,333,980 10,311,469
Nike Inc Class B 8,409,430 10,152,294
Applied Materials Inc Common Stock 6,580,427 10,016,581
Intel Corp Common Stock 8,128,690 9,831,250
Chevron Corp Common Stock 9,673,241 9,659,650
Anheuser Busch Cos Inc Common Stock 6,791,367 9,550,450
Alltrista Corp Common Stock 6,340,767 8,596,200
Genentech Inc Common Stock 4,426,791 8,516,750
Enron Corp Common Stock 4,328,942 8,196,125
Washington Fed Inc Common Stock 4,786,171 8,166,319
Household Intl Inc Common Stock 5,510,123 8,123,500
Texaco Inc Common Stock 6,696,954 8,076,250
Lowes Cos Inc USD0.50 5,400,599 8,023,350
Kimberly Clark Corp Common Stock 5,427,246 8,004,370
America Online Inc Del Common Stock 12,830,323 7,746,480
Abbott Labs Common Stock 6,234,608 7,682,188
FHLMC TBA Dec 30 Gold Single 7.5% 01 Dec 2099 7,397,690 7,525,090
Baker Hughes Inc Common Stock 3,946,034 7,465,456
Kohls Corp Common Stock 1,777,673 7,252,900
-12-
Kellogg Co Common Stock $ 8,510,166 $ 7,168,875
Goldman Sachs Group Inc Common Stock 5,873,357 7,122,038
Teradyne Inc Common Stock 5,080,112 7,114,750
United Technologies Corp Common Stock 4,059,774 6,997,625
XL Capital Ltd Shs A 2,862,509 6,990,000
United States Treasury Bonds 7.875% 15 Feb 2021 6,793,381 6,983,480
Conoco Inc Common Stock 5,261,337 6,872,714
Illinois Tool Wks Inc Common Stock 5,587,529 6,813,950
US Bancorp Del Common Stock 5,486,815 6,736,475
Forest Labs Inc Common Stock 3,370,474 6,643,750
Sun Microsystems Inc Common Stock 6,168,082 6,625,888
Bristol Myers Squibb Co Common Stock 5,845,123 6,506,500
United States Treasury Notes 6% 15 Aug 2009 6,195,725 6,437,531
Agilent Technologies Inc Common Stock 6,157,528 6,289,133
Union Pac Corp Common Stock 5,551,965 6,262,550
J P Morgan Chase & Co Common Stock 5,027,407 6,219,122
Morgan Stanley Dean Witter Common Stock 4,069,915 6,216,370
Colgate Palmolive Co Common Stock 2,742,681 6,183,890
Applera Corp Allied Biosys Common Stock 3,441,057 6,132,875
Unocal Corp Common Stock 5,122,045 6,097,150
Nextel Communications Inc Class A 10,697,101 6,095,925
Compaq Computer Corp Common Stock 10,500,616 6,013,980
Pepsico Inc Common Stock 5,426,165 5,967,325
Ford Mtr Co Del Com Par USD0.01 5,207,749 5,916,586
Target Corp Common Stock 5,875,494 5,888,850
Dell Computer Corp Common Stock 9,587,290 5,818,894
United States Treasury Notes 6.125% 15 Aug 2007 5,593,061 5,722,892
Williams COS Inc Common Stock 4,452,285 5,635,181
Campbell Soup Co Common Stock 5,749,853 5,591,938
Motorola Inc Common Stock 8,278,499 5,564,700
Bank New York Inc Common Stock 4,168,849 5,424,931
Applied Micro Circuits Corp Common Stock 3,499,715 5,418,384
Coca Cola Co Common Stock 4,808,061 5,265,000
Univision Communications Class A 4,592,207 5,240,000
Keycorp New Common Stock 4,866,615 5,210,800
Lockheed Martin Corp Common Stock 4,104,618 5,177,375
Costco Whsl Corp New Common Stock 4,377,758 5,155,931
-13-
Pimco Funds High Yield Fund Instl Cl $ 5,212,734 $ 5,022,370
Capital Guardian Emerging Market Equity 5,388,189 5,004,088
Worldcom Inc Common Stock 11,886,169 4,989,670
FNMA Pool 535095 8% 01 Dec 2014 4,948,758 4,954,059
McDonalds Corp Common Stock 5,239,768 4,950,400
Oracle Corp Common Stock 4,456,466 4,917,375
Guidant Corp Common Stock 3,280,815 4,859,769
First Union Corp Common Stock 6,716,341 4,789,313
General Mtrs Corp Common Stock 5,901,543 4,783,846
Omnicom Group Common Stock 2,148,933 4,765,313
United States Treasury Notes 5.75% 15 Aug 2010 4,653,835 4,700,145
AT&T Corp Common Stock 10,676,259 4,614,647
Arrow Electrs Inc Common Stock 3,558,956 4,508,438
GNMA Pool 780191 7.5% 15 Jul 2025 4,465,873 4,482,738
Wells Fargo & Co New Common Stock 3,208,041 4,471,706
Astrazeneca Plc Sponsored Adr 2,728,397 4,463,299
General Mls Inc Common Stock 3,445,765 4,442,881
Clear Channel Communications Common Stock 5,583,104 4,359,375
Corning Inc Common Stock 5,599,179 4,314,781
AES Corp Common Stock 1,535,620 4,291,563
Baxter Intl Inc Common Stock 2,265,729 4,221,338
Tiffany & Co New Common Stock 3,961,563 4,202,963
Checkfree Corp New Common Stock 4,356,286 4,202,900
Eaton Corp Common Stock 3,772,416 4,045,088
Veritas Software Corp Common Stock 4,817,885 3,994,348
Becton Dickinson & Co Common Stock 3,331,122 3,957,638
GNMA Pool 781176 7% 15 Dec 2028 3,661,514 3,872,342
VF Corp Common Stock 3,245,493 3,859,560
Halliburton Co Common Stock 3,630,334 3,831,625
Cablevision Sys Corp Class A 2,200,477 3,796,706
Parker Hannifin Corp Common Stock 2,992,404 3,750,625
JDS Uniphase Corp Common Stock 6,836,356 3,739,369
May Dept Stores Co Common Stock 3,601,236 3,736,775
Bell South Corp Common Stock 4,040,654 3,647,531
DLG Mtg Accep Corp 6.75% 19 Jun 2028 3,705,351 3,643,379
KLA Tencor Corp Common Stock 2,244,227 3,634,881
International Paper Co Common Stock 3,422,536 3,620,069
-14-
CNF Inc Common Stock $ 3,730,164 $ 3,560,456
FNMA Pool 323819 7.5% 01 Jun 2029 3,523,225 3,535,706
General Dynamics Corp Common Stock 2,603,819 3,510,000
Hartford Financial Svcs Group Common Stock 2,082,718 3,488,875
Dow Chem Co Common Stock 3,214,438 3,351,188
Clorox Co Common Stock 3,995,392 3,337,000
Fedex Corp Common Stock 3,682,083 3,332,664
Ingersoll Rand Co Common Stock 3,078,303 3,308,125
American Std Cos Inc Del Common Stock 2,533,005 3,289,144
Gillette Co Common Stock 3,516,707 3,211,513
Peoplessoft Inc Common Stock 1,776,341 3,209,281
Ambac Finl Group Inc Common Stock 1,872,470 3,207,188
Heinz H J Co Common Stock 2,721,843 3,206,775
Minnesota Mng & Mfg Co Common Stock 2,999,247 3,205,300
FNMA TBA Jan 30 Single Fam 7% 01 Dec 2099 3,105,963 3,144,898
Analog Devices Inc Common Stock 2,198,045 3,132,675
Lincoln Natl Corp In Common Stock 2,831,697 3,127,356
Golden West Finl Corp Del Common Stock 2,842,687 3,105,000
Wisconsin Energy Corp Common Stock 3,234,411 3,082,038
First Data Corp Common Stock 1,821,462 3,076,950
Comcast Corp Class A 2,764,772 3,068,625
Emerson Elec Co Common Stock 2,342,206 3,065,806
Sepracor Inc Common Stock 2,938,319 3,028,725
Merita Bk Ltd 7.15% 29 Dec 2049 2,999,640 3,004,410
Avnet Inc Common Stock 3,517,668 2,995,853
Boeing Co Common Stock 1,655,443 2,989,800
Flextronics International Common Stock 2,921,742 2,983,950
Quintiles Transnational Corp Common Stock 3,437,134 2,979,406
Allergan Inc Common Stock 2,718,480 2,972,144
Dover Corp Common Stock 2,087,401 2,965,119
Providian Finl Corp Common Stock 2,326,911 2,932,500
Avon Prods Inc Common Stock 2,436,693 2,872,500
Federal Natl Mtg Assn 7.25% 15 Jan 2010 2,675,402 2,866,882
United States Treasury Notes 5.25% 15 May 2004 2,821,055 2,859,804
TXU Corp Common Stock 2,551,065 2,858,156
Safeway Inc Common Stock 2,271,302 2,856,250
Brocade Communications Sys Inc Common Stock 2,716,742 2,846,188
-15-
United States Treasury Bd Strp Prn 0.01% 15 Nov 2004 $ 2,716,730 $ 2,842,132
Berkshire Hathaway Inc Del Class A 1,843,460 2,769,000
Fleetboston Finl Corp Common Stock 2,445,021 2,749,575
Cinergy Corp Common Stock 1,864,049 2,729,213
Entergy Corp Common Stock 1,919,421 2,716,463
Transocean Sedco Forex Inc Common Stock 2,450,482 2,686,400
Federal Natl Mtg Assn 6.625% 15 Oct 2007 2,550,687 2,676,808
Grainger WW Inc Common Stock 2,948,582 2,657,200
General Mtrs Corp Common Stock 3,717,606 2,631,200
Capital One Finl Corp Common Stock 2,030,554 2,625,919
Caterpillar Inc Common Stock 2,250,318 2,616,381
Fed Hm Ln PC C41473 7.5% 01 Aug 2030 2,552,412 2,609,429
FFTW Fds Inc Intl Hedged Portfolio 2,921,176 2,599,516
Wells Fargo Bk N A San Francisco 7.8% 15 Jun 2010 2,475,000 2,585,014
Countrywide Cr Inds Inc Common Stock 1,569,628 2,577,825
Palm Inc Common Stock 3,608,892 2,542,463
HCA Healthcare Co Common Stock 1,893,937 2,521,773
PNC Finl Svcs Group Inc Common Stock 1,635,638 2,513,350
Sony Corp Common Stock 1,554,485 2,511,000
United States Treasury Notes 6.75% 15 May 2005 2,408,750 2,503,479
Cigna Corp Common Stock 1,450,707 2,500,470
Federal Home Ln Mtg Corp Common Stock 1,832,659 2,493,275
Solectron Corp Common Stock 1,301,887 2,474,700
Eastman Kodak Co Common Stock 2,921,489 2,425,500
PMI Group Inc Common Stock 1,529,704 2,382,600
Conagra Inc Common Stock 1,816,791 2,379,000
United States Treasury Bonds 6.625% 15 Feb 2027 2,243,943 2,375,755
Air Products & Chemicals Inc Common Stock 2,036,614 2,369,800
PMC Sierra Inc Common Stock 3,245,569 2,366,613
Packaging Corp Amer Common Stock 1,672,384 2,365,538
Phillips Pete Co Common Stock 2,267,487 2,331,875
Interpublic Group Cos Inc Common Stock 778,938 2,319,656
Germany Federal Rep OF 5% 19 Aug 2005 2,152,862 2,295,523
LB UBS Coml Mtg TR 6.51% 15 Nov 2010 2,260,107 2,260,107
Rohm & Haas Co Common Stock 2,151,420 2,258,638
Black & Decker Corp Common Stock 2,162,614 2,252,950
Nisource Inc Common Stock 1,503,724 2,250,900
-16-
Genuine Parts Co Common Stock $ 1,781,743 $ 2,225,938
Tenet Healthcare Corp Common Stock 1,169,354 2,212,988
Indymac Bancorp Inc Common Stock 1,928,889 2,212,500
Royal Dutch Pete Co Common Stock 1,956,823 2,204,475
Fed Hm Ln PC G01135 8% 01 Sep 2030 2,132,105 2,166,494
Carnival Corp Common Stock 1,954,694 2,138,388
NCR Corp New Common Stock 1,986,053 2,122,200
Hasbro Inc Common Stock 3,384,437 2,119,688
Amerada Hess Corp Common Stock 1,764,034 2,118,813
Rational Software Corp Common Stock 2,048,716 2,118,200
Medimmune Inc Common Stock 2,404,071 2,112,556
Deere & Co Common Stock 2,009,971 2,100,503
Delphi Automotive Sys Corp Common Stock 2,938,562 2,091,375
Walgreen Co Common Stock 2,074,245 2,090,625
GNMA I TBA Jan 30 Single Fam 8% 15 Dec 2099 2,046,250 2,052,500
Tennessee Gas Pipeline Co 7% 15 Oct 2028 1,946,252 2,049,938
Raytheon Co Class B 1,655,502 2,034,594
Kennametal Inc Common Stock 2,293,639 2,032,925
FHLMC TBA Jan 30 Gold Single 7.5% 01 Dec 2099 2,008,125 2,030,620
Federal Natl Mtg Assn 6.625% 15 Nov 2010 1,928,883 2,030,531
FNMA TBA Jan 30 Single Fam 7.5% 01 Dec 2099 2,007,500 2,029,380
Bowater Inc Common Stock 1,386,173 2,023,863
Waters Corp Common Stock 1,684,685 2,020,700
Fluor Corp New Common Stock 1,466,420 2,020,119
Summit Bancorp Common Stock 1,549,706 2,020,119
Occidental Pete Corp Common Stock 1,853,616 2,012,750
Conseco Inc 8.75% 09 Feb 2004 2,723,529 1,989,250
Progress Energy Inc Common Stock 1,360,589 1,967,500
Honeywell Intl Inc Common Stock 2,029,738 1,944,544
Gannett Inc Common Stock 2,049,608 1,942,325
Ameren Corp Common Stock 1,817,231 1,940,494
Dynegy Inc New Class A 1,247,941 1,934,156
Global Marine Inc Common Stock 1,491,607 1,929,500
Autodesk Incorporated Common Stock 3,016,208 1,926,031
MBIA Inc Common Stock 1,472,947 1,919,838
Whirlpool Corp Common Stock 1,661,896 1,907,500
Financing Corp Cpn Fico Strips 0.01% 30 May 2005 1,751,358 1,904,263
-17-
United States Treasury Bonds 5.25% 15 Feb 2029 $ 1,646,574 $ 1,901,570
Coca Cola Enterprises Inc Common Stock 1,834,795 1,900,000
American Gen Corp Common Stock 1,709,790 1,898,950
Cincinnati Finl Corp Common Stock 1,738,938 1,875,263
Centaur Funding Prefered Shares 1,800,380 1,871,438
PPG Inds Inc Common Stock 2,255,073 1,861,763
Novellus Sys Inc Common Stock 2,419,990 1,861,563
Perkinelmer Inc Common Stock 1,670,412 1,858,500
NTL Inc Common Stock 5,223,212 1,857,694
Devon Energy Corporation New Common Stock 1,640,757 1,853,488
Ing Cap Fdg TR III 8.439% 31 Dec 2049 1,800,000 1,836,720
United States Treasury Notes 5.875% 15 Nov 2004 1,819,548 1,826,440
Disney Walt Co Common Stock 2,298,694 1,817,275
Axa Sa 8.6% 15 Dec 2030 1,789,884 1,815,643
Fox Entmt Group Inc Class A 2,395,131 1,814,313
Immunex Corp New Common Stock 1,730,533 1,807,813
Delta Air Lines Inc 7.379% 18 May 2010 1,750,000 1,804,320
Nabors Industries Inc Common Stock 1,279,518 1,804,075
United States Treasury Notes 6% 15 Aug 2009 1,765,696 1,800,103
Cooper Inds Inc Common Stock 1,531,484 1,796,156
St Paul Cos Inc Common Stock 1,757,602 1,786,881
Siebel Sys Inc Common Stock 2,183,786 1,771,775
Quaker Oats Co Common Stock 1,248,854 1,762,488
Federal Home Ln Mtg Corp 7% 15 Jul 2005 1,702,064 1,752,448
JP Morgan Instl Fds International Bond Fund 1,697,494 1,749,326
TMP Worldwide Inc Common Stock 2,094,983 1,743,500
Abitibi Consolidated Inc 8.55% 01 Aug 2010 1,721,222 1,740,215
* Northrop Grumman Corporation Cash Account 1,724,659 1,725,811
Greenpoint Finl Corp Common Stock 952,375 1,719,375
Symbol Technologies Inc Common Stock 2,004,555 1,713,600
AFLAC Inc Common Stock 1,401,266 1,696,406
Duke Energy Field Svcs LLC 7.875% 16 Aug 2010 1,587,452 1,690,505
Goodrich BF Co Common Stock 1,619,836 1,684,163
Archer Daniels Midland Co Common Stock 1,447,545 1,680,000
Harley Davidson Inc Common Stock 1,851,981 1,677,450
Weatherford Intl Inc New Common Stock 612,951 1,676,194
Donnelley R R & Sons Co Common Stock 1,441,179 1,647,000
-18-
Internationsl Rectifier Corp Common Stock $ 2,409,577 $ 1,644,000
Qualcomm Inc Common Stock 546,387 1,643,750
Equity Office Pptys Tr Common Stock 1,451,602 1,631,250
Radioshack Corp Common Stock 1,572,395 1,631,156
Electronic Data Sys Corp New Common Stock 1,528,113 1,617,000
Pinnacle West Cap Corp Common Stock 1,121,788 1,595,438
Cadence Design Sys Inc Common Stock 1,144,597 1,584,000
Thermo Electron Corp Common Stock 1,554,969 1,576,750
Weyerhaeuser Co Common Stock 1,449,117 1,573,250
Loews Corp Common Stock 1,437,849 1,553,438
Northeart Untils Common Stock 861,316 1,539,875
DTE Energy Co Common Stock 1,210,099 1,530,244
Mercury Interactive Corp Common Stock 1,322,943 1,525,225
Fiserv Inc Common Stock 1,773,043 1,522,744
Millennium Pharmeceuticals Common Stock 1,322,619 1,522,125
Valero Energy Corp Common Stock 1,309,594 1,520,969
RF Micro Devices Inc Common Stock 2,006,359 1,517,294
Peregrine Sys Inc Common Stock 1,445,873 1,512,850
Pitney Bowes Common Stock 1,368,040 1,510,500
Fed Hm Ln PC C00921 7.5% 01 Feb 2030 1,461,586 1,508,476
Southwest Airls Co Common Stock 1,278,559 1,502,144
United States Treasury Notes 5.75% 15 Nov 2005 1,452,846 1,487,030
Emulex Corp Common Stock 1,193,950 1,470,850
United Parcel Svc Inc Class B 1,520,076 1,470,313
Amr Corp Del Common Stock 786,012 1,457,775
Jefferson Pilot Corp Common Stock 1,278,106 1,457,625
Convergys Corp Common Stock 1,479,564 1,454,531
United States Treasury Bonds 7.25% 15 May 2016 1,344,245 1,452,669
MBNA Corp Common Stock 1,284,305 1,451,644
Harrahs Entmt Inc Common Stock 1,335,269 1,450,625
Financing Corp Cpn Fico Strips 0.01% 06 Jun 2003 1,232,512 1,440,793
IDEC Pharmaceuticals Corp Common Stock 1,408,325 1,440,675
Vodafone Group PLC New Sponsored Adr 1,563,053 1,432,500
Finisar Corp Common Stock 1,354,671 1,426,800
Xerox Corp Common Stock 3,462,659 1,425,425
Starbucks Corp Common Stock 1,421,011 1,420,425
Nortel Networks Corp Common Stock 3,250,973 1,417,163
-19-
Masco Corp Common Stock $ 1,156,021 $ 1,412,813
National Comm Bancorp Common Stock 1,092,521 1,403,325
Juniper Networks Inc Common Stock 1,036,843 1,399,294
FNMA Pool 498091 6.5% 01 May 2029 1,354,884 1,393,292
GNMA Pool 354686 7.5% 15 Nov 2023 1,401,329 1,391,734
GNMA Pool 496920 7% 15 Apr 2029 1,386,105 1,369,060
Bjs Whsl Club Inc Common Stock 1,160,875 1,366,150
IVAX Corp Common Stock 1,450,369 1,359,650
Federal Natl Mtg Assn 7.25% 15 Jan 2010 1,295,885 1,351,995
TJX Cos Inc New Common Stock 1,102,129 1,351,425
Altera Corp Common Stock 1,712,020 1,344,569
Government Natl Mtg Assn 1% 16 Jul 2028 1,352,191 1,341,284
United States Treasury Notes 5.75% 15 Aug 2010 1,299,747 1,338,258
Jones Apparel Group Inc Common Stock 1,231,256 1,335,781
Maxim Integrated Prods Inc Common Stock 1,324,368 1,333,969
Universal Health Svcs Inc Class B 732,277 1,329,825
Cintas Corp Common Stock 1,238,934 1,329,688
Marriott Intl Inc New CL A 1,026,178 1,326,650
Federal Natl Mtg Assn 7.25% 15 May 2030 1,222,338 1,320,219
Starwood Hotels & Resorts Class B 931,290 1,293,675
American Electric Power Inc Common Stock 1,240,954 1,278,750
CMS Energy Corp Common Stock 1,116,139 1,273,838
Allegiance Telecom Inc Common Stock 1,628,019 1,273,594
USA Networks Inc Common Stock 1,292,037 1,263,438
K Mart Corp Common Stock 1,299,075 1,248,438
Kroger Co Common Stock 965,099 1,247,581
Cooper Cameron Corp Common Stock 1,150,959 1,241,975
Legg Mason Inc Common Stock 1,087,729 1,237,150
Federal Home Ln Mtg PC Gtd 3.5% 15 Jun 2007 1,174,695 1,235,563
Dana Corp Common Stock 1,902,236 1,234,188
Southtrust Corp Common Stock 909,037 1,228,763
Niagara Mohawk Hldgs Inc Common Stock 1,063,911 1,223,194
FNMA Pool 535039 8% 01 Nov 2029 1,207,937 1,216,274
Autonation Inc Del Common Stock 2,343,225 1,207,200
Mattel Inc Common Stock 1,108,402 1,207,184
Daily Eafe Sl Series A Series A 1,214,692 1,205,651
ITT Inds Inc Common Stock 1,043,268 1,201,250
-20-
Circuit City Stores Inc Common Stock $ 1,421,977 $ 1,196,000
SSGA CMK4 Russel Special Small Co Series A 1,292,536 1,191,747
Family Dlr Stores Inc Common Stock 1,167,042 1,189,781
Vitesse Semiconductor Corp Common Stock 1,116,600 1,189,219
Nordstrom Inc Common Stock 1,074,457 1,182,188
Federal Natl Mtg Assn 6.625% 15 Nov 2030 1,085,568 1,163,767
Wachovia Corp Common Stock 995,135 1,162,500
Johnson Ctls Inc Common Stock 1,199,840 1,159,600
Providian Home Equity Ln TR 1% 25 Jun 2025 1,157,608 1,157,608
Equity Residential Pptys Tr Sh Ben Int 1,057,733 1,150,500
Calpine Corp Common Stock 939,762 1,149,094
Federated Dept Stores Inc Del Common Stock 1,231,853 1,144,500
Bard C R Inc Common Stock 1,194,427 1,126,813
Gap Inc Common Stock 1,247,701 1,116,900
Praxair Inc Common Stock 1,124,324 1,109,375
United States Treasury Notes 6.5% 15 Aug 2005 1,093,684 1,104,920
United States Treasury Notes 6.875% 15 May 2006 1,082,848 1,103,354
Union Carbide Corp Common Stock 903,176 1,103,156
Vornado Rlty TR Common Stock 1,015,496 1,099,569
Tibco Software Inc Common Stock 1,016,357 1,092,975
Redback Networks Inc Common Stock 2,039,019 1,090,600
Micromuse Inc Common Stock 841,163 1,086,469
King Pharmaceuticals Inc Common Stock 776,950 1,080,269
Burlington Northn Santa Fe Common Stock 1,103,070 1,075,875
Eastman Chem Co Common Stock 1,005,505 1,072,500
FNMA Pool 402853 6.5% 01 Dec 2027 1,045,020 1,068,003
Bausch & Lomb Inc Common Stock 1,091,128 1,051,375
Dollar Gen Corp Common Stock 1,096,502 1,038,125
SDL Inc Common Stock 2,617,848 1,037,313
Cit Group Inc Class A 1,195,931 1,032,413
Newport Corp Common Stock 1,336,611 1,029,783
Quest Diagnostics Inc Common Stock 825,279 1,022,400
Charter Communications Inc Del Class A 881,019 1,020,938
Amazon.com Inc 4.75% 01 Feb 2009 1,841,065 1,020,000
GNMA I TBA Jan 30 Single Fam 7.5% 15 Dec 2099 1,013,125 1,017,190
Capital Desjardins Inc 7.37% 08 Aug 2005 1,015,550 1,010,790
Double Click Inc Common Stock 1,201,104 1,007,600
21
Inter Amerin Dev Bk 7.375% 15 Jan 2010 $ 938,542 $ 1,005,760
FNMA TBA Jan 30 Single Fam 7% 01 Dec 2099 997,266 1,001,560
Residential Asset Sec Mtg Pass 1% 25 Jan 2032 1,000,000 999,766
FNMA Pool 537273 8% 01 May 2030 961,403 994,927
Borg Warner Automotive Inc Common Stock 956,326 992,000
Citigroup Inc 7.25% 01 Oct 2010 954,488 991,884
Torchmark Inc Common Stock 619,808 991,688
FNMA TBA Jan 30 Single Fam 6.5% 01 Dec 2099 980,000 986,250
Lauder Estee Cos Inc Class A 956,469 985,781
Federal Natl Mtg Assn Remic 6% 25 Mar 2009 958,281 982,500
Deutsche Mtg & Assets Rec Corp 6.538% 15 Feb 2008 895,791 981,361
Du Pont E I De Nemours & Co Common Stock 857,614 971,081
FNMA TBA Jan 30 Single Fam 6% 01 Dec 2099 960,859 968,130
Internet Sec Sys Inc Common Stock 997,484 964,781
Valero Energy Corp New 8.75% 15 Jun 2030 913,222 960,210
Federal Natl Mtg Assn 6.625% 15 Oct 2007 938,934 960,103
Metromedia Fiber Network Inc Class A 2,709,700 954,788
Bea Sys Inc Common Stock 710,619 949,106
Telephone & Data Sys Inc Common Stock 969,318 945,000
Boise Cascade Corp Common Stock 856,120 941,500
M&T Bank Corp Common Stock 776,379 937,040
BJ Svcs Co Common Stock 771,034 929,813
Atmel Corp Common Stock 877,324 926,513
Owens ILL Inc Common Stock 3,633,709 924,788
Smith Intl Inc Common Stock 791,823 924,575
Royal Caribbean Cruises Ltd Shares 1,117,881 923,105
Lehman Brothers Holdgs Inc Common Stock 598,277 919,700
Sprint Corp PCS Com Series 1 2,238,700 919,688
Edison Intl Common Stock 936,422 918,750
Tesoro Pete Corp Common Stock 867,136 916,050
Energy East Corp 8.05% 15 Nov 2010 861,526 902,945
Engelhard Corp Common Stock 842,938 896,500
Ariba Inc Common Stock 992,449 895,538
GNMA Pool 781035 6.5% 15 May 2029 867,878 894,743
FNMA Pool 252256 7% 01 Feb 2029 897,449 880,958
Lubrizol Corp Common Stock 824,168 878,075
Sprint Corp PCS Com Series 1 1,534,078 876,769
-22-
Consolidated Edison Inc Common Stock $ 759,950 $ 866,250
Chubb Corp Common Stock 820,403 865,000
Inhale Therapeutic Sys Common Stock 767,363 863,550
Murphy Oil Corp Common Stock 807,420 858,213
Converse Technology Inc Common Stock 752,225 858,138
Residential Fdg Mtg Secs 6.5% 25 Sep 2014 846,140 855,825
Henry Schein Inc Common Stock 378,484 855,238
Echostar Communications Corp Class A 1,225,033 853,125
Gemstar TV Guide Intl Inc Common Stock 872,366 848,700
Federal Home Ln Mtg PC Gtd 3.5% 15 Nov 2007 802,222 848,575
Polycom Inc Common Stock 882,779 843,313
Radian Group Inc Common Stock 695,679 833,194
Williams Sonoma Inc Common Stock 1,472,606 830,000
Crown Castle Intl Corp Common Stock 757,037 828,113
Santa Fe International Corp Shares 886,650 824,006
Hibernia Corp Class A 815,512 822,375
Darden Restaurants Inc Common Stock 949,839 816,638
Massachusetts Mut Life Ins Co 7.5% 01 Mar 2024 916,978 816,186
Precision Castparts Corp Common Stock 406,167 816,013
Textron Inc Common Stock 774,647 809,100
John Hancock Financial Srvcs Common Stock 385,488 808,938
Esterline Technologies Corp Common Stock 467,300 808,500
Fed Hm Ln PC C28216 6.5% 01 Jul 2029 789,815 806,409
Vignette Corp Common Stock 793,193 806,400
Ecolab Inc Common Stock 793,262 798,969
Invesment Technology Group Common Stock 639,779 797,425
Gilead Sciences Inc Common Stock 810,125 796,200
General Elec Cap Corp Mtn 7.25% 03 May 2004 764,579 792,448
Unilever N V Common Stock 656,362 786,719
Ford Mtr Co Del 7.45% 16 Jul 2031 788,661 786,718
Merit Securities Corp 6.9562% 28 Apr 2027 803,052 783,976
Micron Technology Inc Common Stock 1,262,042 781,000
United States Treasury Bills 0.01% 26 Apr 2001 776,375 776,375
Authomatic Data Processing Inc Common Stock 635,949 772,413
Temple Inland Inc Common Stock 762,151 772,200
California Infras & Economic 6.38% 25 Sep 2008 730,105 770,921
Advanced Micro Devices Inc Common Stock 675,916 767,975
Sawtek Inc Common Stock $ 985,666 $ 766,713
-23-
Intersil Hldg Corp Class A 1,790,434 766,113
Level 3 Communications Inc Common Stock 1,380,782 757,969
Idacorp Inc Common Stock 505,221 750,656
Suntrust Bks Inc Common Stock 586,450 749,700
Arch Chemicals Inc Common Stock 999,834 748,163
Massey Energy Corp Common Stock 448,524 744,600
Pacificare Health Systems Common Stock 3,305,264 744,000
Federal Home Ln Mtg Corp 1% 15 Apr 2019 741,136 743,943
Banco Latino Americano De Expor 7.2% 28 May 2002 762,735 743,918
Verisign Inc Common Stock 1,740,200 741,875
Unitedhealth Group Inc Common Stock 697,936 736,500
Zions Bancorp Common Stock 647,616 730,519
United States Treasury Notes 6.75% 15 May 2005 703,001 724,411
Adelphia Communications Corp Class A 1,090,250 722,750
FNMA Pool 504076 6.5% 01 Jun 2029 693,953 721,411
Danaher Corp Common Stock 683,233 717,938
Invitrogen Corp Common Stock 416,273 716,913
Protein Design Labs Inc Common Stock 724,481 712,375
Synopsys Inc Common Stock 672,968 711,563
Lucent Technologies Inc Common Stock 795,568 704,511
Mellon Finl Corp Common Stock 720,673 703,381
Corn Products Intl Inc Common Stock 694,190 703,313
FNMA Pool 535315 7% 01 May 2015 680,940 702,552
Cendant Corp Common Stock 975,839 701,663
Credence Systems Corp Common Stock 1,322,603 699,200
General Elec Cap Corp Mtn 6.8% 01 Nov 2005 688,353 697,964
McLeodusa Inc Common Stock 694,163 697,775
Edwards A G Inc Common Stock 693,194 697,331
Firstplus Home Ln Owner Tr 6.61% 10 May 2020 699,827 695,625
Aon Corp Common Stock 612,053 695,275
UBS Pfd Fdg TRI 1% 29 Oct 2049 660,387 692,693
United States Treasury Bonds 7.875% 15 Feb 2021 594,555 687,150
Smurfit Stone Container Corp Common Stock 729,249 685,631
Bergen Brunswig Corp Class A 471,235 685,439
Alberto Culver Co Class B 439,237 680,719
FNMA Pool 535200 7% 01 Mar 2015 654,234 679,441
-24-
Fed Hm Ln PC E74599 6% 01 Jan 2014 $ 686,063 $ 677,499
Dole Food Inc Common Stock 555,498 671,375
Americredit Corp Common Stock 609,723 670,350
Anadarko Pete Corp Common Stock 355,483 668,152
FNMA Pool 323887 6% 01 Dec 2013 648,298 667,948
RTI Intl Metals Inc Common Stock 637,351 666,963
Schweitzer Mauduit Intl Inc Common Stock 545,950 664,505
Fleetboston Finl Corp 7.25% 15 Sep 2005 644,252 663,279
Webb Del Corp Common Stock 417,576 661,050
Metris Cos Inc Common Stock 761,680 660,444
American Pwr Conversion Corp Common Stock 633,243 658,350
Litton Inds Inc Common Stock 377,540 657,041
Medicis Pharmaceutical Corp Class A 581,378 656,288
Moodys Corp Common Stock 660,935 649,894
Xilinx Inc Common Stock 845,840 645,750
Wellpoint Health Networks Inc Common Stock 545,251 645,400
Human Genome Sciences Inc Common Stock 461,406 644,606
GPU Inc Common Stock 475,935 644,219
News Amer Hldgs Inc 10.125% 15 Oct 2012 683,040 640,302
Comed Transitional Fdg Tr 5.63% 25 Jun 2009 654,682 639,084
Washington Fed Inc Common Stock 469,943 637,000
Old Rep Intl Corp Common Stock 485,628 636,800
PG&E Corp Common Stock 815,133 636,000
Bisys Group Inc Common Stock 428,926 635,925
Cabot Corp Common Stock 466,199 635,638
Harman Intl Inds Inc New Common Stock 458,397 635,100
Openwave Sys Inc Common Stock 708,133 632,775
Gardner Denver Inc Common Stock 457,420 630,480
Limited Inc Common Stock 801,782 627,900
Affiliated Computer Services Inc Class A 484,466 625,081
First American Corp Common Stock 322,801 624,625
Intuit Common Stock 733,794 623,113
St Jude Med Inc Common Stock 359,088 620,519
NVR Inc Common Stock 355,400 618,000
Laboratory Corp Amer Hldgs Common Stock 495,055 616,000
Helmerich & Payne Inc Common Stock 414,404 614,250
Transwitch Corp Common Stock 486,073 612,306
-25-
Manugistics Group Inc Common Stock $ 300,516 $ 604,200
Federal Natl Mtg Assn Remic 1% 25 Feb 2009 608,216 603,202
Triquint Semiconductor Inc Common Stock 419,808 602,888
Bio Rad Laboratories Inc Class A 452,975 601,020
Lifepoint Hosps Inc Common Stock 441,759 596,488
Public Storage Common Stock 564,485 595,656
Charter One Finl Inc Common Stock 444,840 594,248
Michael Foods Inc Common Stock 421,907 593,463
Paychex Inc Common Stock 537,143 593,225
Invacare Corp Common Stock 427,911 589,100
Pacific Centy Finl Corp Common Stock 519,265 588,994
WPS Res Corp Common Stock 473,329 585,319
Cytec Inds Inc Common Stock 381,733 583,088
Bell Atlantic Finl Svcs Inc 7.6% 15 Mar 2007 563,582 582,351
Dime Bancorp Inc Common Stock 377,040 579,425
Dillards Inc Class A 573,730 578,813
G E Cap Mtg Svcs Inc 7.6875% 25 Jan 2009 576,825 577,535
Peco Energy Trans TR 6.13% 01 Mar 2009 546,543 574,925
Kellwood Co Common Stock 579,714 572,488
Interstate Bakeries Corp Common Stock 565,520 569,531
Webbmethods Inc Common Stock 447,081 569,200
Sandisk Corp Common Stock 877,800 568,875
West America Bancorporation Common Stock 379,254 567,600
FPL Group Inc Common Stock 350,971 552,475
Varco Intl Inc Del Common Stock 459,131 552,472
Anaren Microwave Inc Common Stock 445,920 550,938
Amsouth Bancorporation Common Stock 476,150 550,525
Federal Natl Mtg Assn Remic 1% 25 Aug 2022 549,114 545,703
Storage Technology Corp Common Stock 563,661 544,500
Federal Natl Mtg Assn Gtd 7.1563% 25 Dec 2023 547,263 544,167
Partnerre Ltd Common Stock 335,416 536,800
United States Treasury Bonds 6.12% 15 Aug 2029 500,106 532,953
New Jersey Economic Dev Auth 7.425% 15 Feb 2029 500,000 530,400
Block Drug Inc Class A 432,504 529,826
United States Treasury Notes 5.5% 28 Feb 2003 520,654 528,854
Tetra Tech Inc New Common Stock 335,168 527,372
Household Fin Corp 8% 09 May 2005 500,741 524,325
-26-
Protective Life Corp Common Stock $ 469,467 $ 522,450
Union Oil Co CA 7.35% 15 Jun 2009 509,400 520,285
Abgenix Inc Common Stock 508,825 519,750
Government Natl Mtg 1% 17 Feb 2029 515,190 519,696
Federal Natl Mtg Assn 5.75% 15 Apr 2003 508,080 516,045
Harleysville Group Inc Common Stock 331,962 514,800
General Mtrs Accep Corp 7.5% 15 Jul 2005 494,530 509,236
Sungard Data Sys Inc Common Stock 405,606 508,950
Crompton Corp Common Stock 568,430 504,420
Public Svc Co NM Common Stock 314,785 504,075
Wellman Inc Common Stock 593,437 502,850
Steris Corp Common Stock 337,890 501,488
Everest Reinsurance Group Ltd Shares 357,317 501,375
First USA Cr Card Master Tr 1% 15 Oct 2003 504,824 500,950
Penn Engr & Mfg Corp Common Stock 421,746 497,025
Brinker Intl Inc Common Stock 287,873 494,325
Community Health Sys Inc New Common Stock 293,979 490,000
Professional Detailing Inc Common Stock 173,863 486,522
Cox Radio Inc Class A 505,708 485,094
Granite Constr Inc Common Stock 365,199 480,363
El Paso Energy Corp Del Common Stock 256,658 479,888
Beckman Coulter Inc Common Stock 337,749 478,088
Green Tree Finl Corp 7.35% 15 May 2027 469,486 476,463
Regal Beloit Corp Common Stock 491,136 470,856
Briggs & Stratton Corp Common Stock 395,452 470,375
Diamond Cluster Intl Inc Common Stock 548,258 469,700
Empire Dist Elec Co Common Stock 420,878 468,363
Pactiv Corp Common Stock 337,845 467,775
Bob Evans Farms Inc Common Stock 381,496 466,744
Misc Indl Direct Inc Class A 413,300 466,013
Southwestern Energy Co Common Stock 431,626 465,838
Federal Natl Mtg Assn Gtd 0% 25 May 2022 349,750 464,701
Ucar Intl Inc Common Stock 709,138 460,200
BankNorth Group Inc New Common Stock 405,290 454,575
Prudential Ins Co Amer 6.875% 15 Apr 2003 446,342 454,181
Petroleum Geo Svcs A/S 6.625% 30 Mar 2008 497,905 453,580
Summit Pptys Inc Common Stock 407,775 452,400
-27-
FMC Corp Common Stock $ 379,695 $ 451,631
Scotts Co Class A 410,492 450,638
Hilton Hotels Corp Common Stock 427,218 450,450
Ralcorp Hldgs Inc New Common Stock 424,026 450,313
Alliant Corp Common Stock 395,309 449,438
Nicor Inc Common Stock 358,912 449,150
Norwest Asset Secs Corp 6.75% 25 Dec 2014 427,688 446,450
Macrovision Corp Common Stock 304,425 444,094
Arden Realty Inc Common Stock 429,224 442,200
Rayonier Inc Common Stock 463,626 441,919
3M Employee St Ownership Plan 5.62% 15 Jul 2009 454,035 441,218
National Oilwell Inc Common Stock 409,602 441,038
FNMA Pool 444397 6.5% 01 Nov 2028 430,723 440,917
LB Coml Conduit Mtg TR 6.78% 15 Apr 2009 413,872 438,600
TD Waterhouse Group Inc Common Stock 556,427 438,575
Cardinal Health Inc Common Stock 325,326 438,350
Sun Life CDA US Cakp TR I 8.526% 29 May 2049 500,000 437,115
Regis Corp Minnesota Common Stock 441,385 436,450
United States Treasury Notes 5.75% 15 Aug 2010 413,645 434,908
Anixter Intl Inc Common Stock 466,231 434,663
Texas Inds Inc Common Stock 476,060 432,000
Nationslink Fdg Corp 6.001% 20 Nov 2007 435,952 431,682
FNMA Pool 494652 6.5% 01 May 2029 421,935 431,646
Albany Molecular Rech Inc Common Stock 238,986 431,375
Phelps Dodge Corp Common Stock 377,503 429,756
Horage Mann Educators Corp Common Stock 348,648 429,638
California Infra & Economic 6.42% 26 Dec 2009 444,104 429,314
Reliant Energy Inc Common Stock 416,189 428,794
KB Home Common Stock 275,658 427,831
EOP Oper Ltd Partnership 7.375% 15 Nov 2003 419,588 426,800
Knight Ridder Inc Common Stock 376,241 426,563
Fuller H B Co Common Stock 462,905 426,094
Avalonbay Cmtys Inc Common Stock 333,990 426,063
GBC Bancorp Calif Common Stock 277,931 425,963
Lamar Advertising Co Class A 440,288 424,531
Newcourt CR Group Inc 6.875% 16 Feb 2005 408,233 423,765
Hutchinson Technology Inc Common Stock 528,578 423,500
-28-
Alexander & Baldwin Inc Common Stock $ 409,794 $ 422,625
Avista Corp Common Stock 410,874 420,250
Mirant Corp Common Stock 372,630 419,025
Genuity Inc Class A 909,700 418,669
Alza Corp Common Stock 208,288 416,500
Globespan Semiconductor Inc Common Stock 481,537 415,250
Xcel Energy Inc Common Stock 387,143 412,688
Biovail Corp Common Stock 354,358 411,704
Andrx Corp Common Stock 485,134 410,913
California Infrastructure Dev 6.42% 25 Sep 2008 384,497 408,702
On Semiconductor Corp Common Stock 1,146,338 408,450
Federal Natl Mtg Assn Gtd 0% 25 Jun 2008 384,119 407,703
Toro Co Common Stock 389,341 407,231
Federal Home Ln Mtg PC Gtd 6% 15 May 2008 382,032 406,918
Cima Labs Inc Common Stock 260,515 403,388
International Game Technology Common Stock 383,896 403,200
Longs Drug Stores Copr Common Stock 417,180 402,888
AAR Corp Common Stock 489,018 402,738
Federal Natl Mtg Assn Remic 1% 25 Sep 2007 408,267 402,229
Franklin Pk Fin Inc 1% 15 May 2007 399,960 399,438
Moog Inc Class A 421,476 397,300
Myriad Genetics Inc Common Stock 361,640 397,200
Gtech Hldgs Corp Common Stock 313,346 396,856
Norwest Asset Secs Corp 6.75% 25 Aug 2029 387,438 396,748
New York Times Co Class A 372,662 396,619
Oneida Ltd Common Stock 388,836 396,309
Fed Hm Ln PC C27874 7% 01 Jun 2029 388,342 393,710
Global Crossing Ltd Shares 632,090 392,163
Andrew Corp Common Stock 429,340 389,325
R G S Energy Group Inc Common Stock 310,204 389,250
Parexel Intl Corp Common Stock 355,816 388,169
Federal Home Ln Mtg Corp 1% 15 Jan 2025 383,072 384,143
JLG Inds Inc Common Stock 385,921 382,500
Compass Bancshares Inc Common Stock 336,666 382,000
Oshkosh Truck Corp Common Stock 209,385 380,600
Interface Inc Class A 322,280 379,644
Raytheon Co 6.15% 01 Nov 2008 392,807 377,126
-29-
New Jersey Res Corp Common Stock $ 330,101 $ 376,275
Pentair Inc Common Stock 496,454 374,906
Ford Mtr Cr Mtn BE 7.75% 15 Feb 2007 365,629 374,096
Franklin Res Inc Common Stock 317,907 373,380
Radio One Inc Common Stock 466,125 370,700
Pogo Producing Co Common Stock 290,717 370,388
Powerwave Technologies Inc Common Stock 186,192 368,550
Phoenix Technology Ltd Common Stock 341,892 368,123
Viacom Inc 7.7% 30 Jul 2010 351,232 366,559
Dial Corp New Common Stock 397,134 366,300
Govt Natl Mtg Assn Gtd Remic 1% 16 Aug 2029 363,501 364,415
Quantum Corp Common Stock 423,803 363,431
Avanex Corp Common Stock 351,258 363,331
Ultramar Diamond Shamrock Common Stock 299,334 361,238
Regions Finl Corp Common Stock 326,789 360,525
Wal Mart Stores Inc 7.55% 15 Feb 2030 338,536 359,876
American Tower Corp Class A 403,304 359,813
Florida Pwr & Lt Co 6.875% 01 Dec 2005 349,508 358,677
Merrill Lynch & Co Inc 6% 17 Feb 2009 341,138 355,103
L 3 Communications Hldg Corp Common Stock 283,341 354,200
Liberty Property Common Stock 318,035 354,175
Structural Dynamics Resh Corp Common Stock 472,814 354,000
Iron Mtn Inc PA Common Stock 318,500 352,688
Allstate Corp 7.875% 01 May 2005 337,636 350,156
Hexcel Corp New Common Stock 548,413 348,563
Medarex Inc Common Stock 360,963 346,375
Iomega Corp Common Stock 404,798 344,751
Citicorp Mtg Secs Inc 1% 25 Sep 2014 336,002 344,550
Lennar Corp Common Stock 262,746 344,375
Boston Pptys Inc Common Stock 333,081 343,650
United States Treasury Bd Strp Prn 0.01% 15 Nov 2001 329,878 343,274
Unilever Capital 7.125% 01 Nov 2010 337,393 340,444
Target Corp 7.5% 15 Aug 2010 321,081 337,616
FNMA Pool 479193 6% 01 Jan 2029 344,079 337,168
Ruddick Corp Common Stock 427,899 336,263
CSG Sys Intl Inc Common Stock 337,283 333,256
Atlanta Downtown Dev Auth 6.875% 01 Feb 2021 321,687 332,795
-30-
Perrigo Co Common Stock $ 348,033 $ 329,594
FNMA Pool 534357 7.5% 01 May 2030 312,557 328,888
Exar Corp Common Stock 490,681 328,434
Stilwell Financial Inc Common Stock 352,486 327,331
Mueller Inds Inc Common Stock 327,163 327,113
Northern Trust Corp Common Stock 326,585 326,250
Associates Corp North America 5.8% 20 Apr 2004 315,589 324,393
Pepsi Bottling Hldgs Inc 5.625% 17 Feb 2009 310,067 324,238
Burlington Northn Santa Fe Corp 6.75% 15 Mar 2029 311,168 324,137
California Water Service Grp Common Stock 305,601 324,000
Keyspan Corp 8% 15 Nov 2030 309,793 322,962
Chesapeake Corp Common Stock 449,474 322,831
Wolverine Tube Inc Common Stock 423,646 321,332
American Natl Ins Co Common Stock 328,481 321,200
PNC Fdg Corp 7.5% 01 Nov 2009 308,413 320,370
FNMA Pool 503680 6.5% 01 Jun 2029 306,889 313,952
Student Ln Marketing Assn Mtn 9.4% 31 May 2002 324,668 313,404
Patterson Energy Inc Common Stock 271,688 312,900
Impath Inc Common Stock 274,478 312,550
Vanderbilt Mtg & Fin Inc 1% 07 Feb 2012 299,625 310,240
FNMA Pool 506543 6.5% 01 Jul 2029 302,912 309,883
Unilever Capital Corp 6.875% 01 Nov 2005 299,553 309,726
FNMA Pool 498065 6.5% 01 Jun 2029 301,727 308,671
Chase Manhattan Corp New 7.875% 15 Jun 2010 289,617 308,096
Noven Pharmaceuticals Inc Common Stock 195,988 306,475
FNMA Pool 503732 6.5% 01 Jul 2029 298,955 305,836
Kelly Svcs Inc Class A 355,136 304,763
Airborne Inc Common Stock 554,342 304,200
First Rep Bk San Francisco Common Stock 233,983 303,600
FNMA Pool 252497 6.5% 01 Jun 2029 296,335 303,155
Vanderbilt Mtg & Fin Inc 1% 07 Jun 2009 299,953 303,136
Eastgroup Pptys Inc Common Stock 297,872 302,063
Stride Rite Corp Common Stock 350,847 299,600
Federal Natl Mtg Assn Gtd 1% 25 Apr 2029 301,116 296,249
Bombadier Cap Inc Med Trm Nts 7.3% 15 Dec 2002 289,410 295,257
Deutsche Telekom Intl 8% 15 Jun 2010 295,695 294,541
Duke Weeks Rlty Corp Common Stock 282,005 293,924
-31-
Goldman Sachs Group Inc 6.65% 15 May 2009 $ 299,397 $ 292,257
Vodafone Airtouch PLC 7.75% 15 Feb 2010 283,546 291,648
Commercial Metals Co Common Stock 381,421 291,475
Abercrombie and Fitch Co Class A 285,452 290,000
FNMA Pool 303975 10% 01 Nov 2018 283,065 288,970
Continental Airls Pass Thru Tr 7.256% 15 Mar 2020 278,541 288,854
Ross Stores Inc Common Stock 249,662 286,875
Comcast Cable Communications 8.875% 01 May 2017 268,503 286,625
International Paper Co 8% 08 Jul 2003 274,439 285,302
Qlogic Corp Common Stock 326,745 284,900
Alaska Air Group Inc Common Stock 306,833 282,625
Cytyc Corp Common Stock 187,399 281,531
Arizona Pub Svc Co 7.625% 01 Aug 2005 268,709 279,326
Citigroup Cap II 7.75% 01 Dec 2036 305,895 279,168
Modine Mfg Co Common Stock 348,541 278,050
Salomon Bros Coml Mtg TR 6.592% 18 Oct 2010 277,200 277,200
California Inf & Economic Dev 6.48% 26 Dec 2009 274,656 277,057
Tycom Ltd Shares 407,070 275,213
Molecular Devices Corp Common Stock 205,818 273,750
Actuate Corp Common Stock 199,268 269,663
Manhattan Assocs Inc Common Stock 282,714 268,538
Post Pptys Inc Common Stock 302,771 266,694
Province Healthcare Co Common Stock 188,196 265,781
Tech Data Corp Common Stock 350,711 265,059
Federal Natl Mtg Assn 7% 15 Jul 2005 255,176 262,383
Extreme Networks Inc Common Stock 339,331 262,138
Maximus Inc Common Stock 174,450 262,031
Bowne & Co Inc Common Stock 344,742 260,894
Kimco Rlty Corp Common Stock 241,281 260,706
Cole Kenneth Prodtns Inc Class A 235,755 259,613
Alpha Inds Inc Common Stock 270,920 259,000
Lilly Eli & Co 6.77% 01 Jan 2036 243,924 257,478
Veritas DGC Inc Common Stock 214,440 255,170
AETNA Inc Common Stock 212,350 254,588
Southern Peru Ltd 7.9% 30 May 2007 283,617 253,019
Park Pl Entmt Corp 7.95% 01 Aug 2003 248,200 252,723
Celeritek Inc Common Stock 279,775 251,625
-32-
Verizon Global Fdg Corp 7.75% 01 Dec 2030 $ 243,031 $ 251,096
Wal Mart Stores Inc 6.875% 10 Aug 2009 232,603 250,459
Venator Group Inc Common Stock 231,830 249,550
Krispy Kreme Doughnuts Inc Common Stock 139,551 249,000
Federal Home Ln Mtg PC Gtd 9% 15 Jun 2020 243,202 245,488
Sanmina Corp Common Stock 268,605 245,200
Vodafone Airtouch PLC 7.625% 15 Feb 2005 244,019 244,019
Phillips Pete Co 8.5% 25 May 2005 233,515 243,416
Conmed Corp Common Stock 370,304 243,175
SBA Communications Corp Common Stock 270,048 242,269
Petroleum Geo Svcs A/S 7.5% 31 Mar 2007 250,097 241,398
Lockheed Martin Corp 8.2% 01 Dec 2009 219,232 241,179
Burlington Res Inc 7.375% 01 Mar 2029 238,181 240,334
United States Treasury Notes 5.625% 28 Feb 2001 238,296 239,887
GNMA Pool 405558 7.5% 15 Jan 2026 240,191 239,860
United States Treasury Bonds 6.125% 15 Aug 2029 227,770 239,285
C H Robinson Worldwide Common Stock 220,522 238,925
Federal Natl Mtg Assn 1% 18 Nov 2027 239,533 238,082
Proxim Inc Common Stock 185,025 236,500
Retek Inc Common Stock 255,034 236,438
Russell Corp Common Stock 397,227 236,194
Power One Inc Common Stock 247,088 235,875
E Trade Group Inc Common Stock 459,844 235,263
Federal Home Ln Mtg PC Gtd 1% 25 Oct 2023 236,894 235,094
Verizon Global Fdg Corp 7.25% 01 Dec 2010 229,558 234,816
United States Treasury Notes 7% 15 Jul 2006 224,867 234,015
Russell Frank Co 5.625% 15 Jan 2009 216,790 232,961
Heller Finl Inc 7.5% 23 Aug 2002 230,238 232,355
United States Treasury Notes 4.75% 15 Nov 2008 205,672 230,445
GMAC Coml Mtg Sec Inc 6.42% 15 Aug 2008 216,583 230,349
Quanta Services Inc Common Stock 231,776 230,141
Marshall & Ilsley Corp Common Stock 233,347 228,735
Whole Foods Mkt Inc Common Stock 157,246 226,163
Prologis TR Common Stock 208,628 224,725
Bright Horizons Family Solut Common Stock 239,725 224,675
Advent Software Inc Common Stock 212,658 224,350
Saxon Asset Secs TR 7.205% 25 Sep 2030 219,983 224,055
-33-
Green Tree Finl Corp 6.04% 01 Nov 2029 $ 221,977 $ 223,452
Akamai Technologies Common Stock 393,550 223,263
California Pizza Kitchen Inc Common Stock 175,819 223,175
Waste Mgmt Inc Del Common Stock 167,365 222,000
Worldcom Inc GA 6.4% 15 Aug 2005 212,515 221,430
Zale Corp New Common Stock 280,235 220,875
P F Changs China Bistro Inc Common Stock 204,922 220,063
Quantum Corp Common Stock 271,412 220,000
Mercury Gen Corp New Common Stock 188,591 219,375
Aeroflex Inc Common Stock 237,385 219,094
Sipex Corp Common Stock 411,574 217,831
Aspen Technology Inc Common Stock 295,751 216,125
Continental Airls Pass Thru Tr 6.545% 02 Feb 2019 209,224 214,993
Metlife Inc Common Stock 107,230 213,500
Varian Inc Common Stock 204,054 213,413
General Semiconductor Inc Common Stock 412,291 213,125
Input/Output Inc Common Stock 148,947 210,881
Morgan Stanley Dean Witter 7.75% 15 Jun 2005 205,167 210,450
Michael Stores Inc Common Stock 317,759 209,350
Signet Helco TR 1% 20 Jun 2004 208,967 208,617
Vodafone Airtouch PLC 7.875% 15 Feb 2030 204,272 208,598
Ontario Prov CDA 7% 04 Aug 2005 208,678 208,584
Read Rite Corp Common Stock 388,462 205,594
Arqule Inc Common Stock 170,683 204,800
Devry Inc Del Common Stock 176,319 203,850
Firstmerit Corp Common Stock 182,172 203,181
Telefonica Europe BV 7.35% 15 Sep 2005 199,922 202,052
Federal Natl Mtg Assn Remic 1% 25 Mar 2009 200,846 200,658
Bank America Corp 5.875% 15 Feb 2009 190,423 199,421
Burlington Northn Santa Fe Corp 6.375% 15 Dec 2005 207,388 198,490
Money Store TR 7% 15 Apr 2028 196,059 197,562
Advanta Mtg LN TR 6.33% 25 Aug 2019 194,523 197,375
Adaptec Inc Common Stock 433,419 196,800
Bell South Cap Fdg Corp 7.875% 15 Feb 2030 191,170 195,913
USX Marathon Group 9.375% 15 Feb 2012 190,397 195,580
Harrahs Oper Inc 7.5% 15 Jan 2009 188,342 195,394
Mentor Corp Minn Common Stock 181,875 195,000
-34-
Techne Corp Common Stock $ 203,724 $ 194,738
Sonus Networks Inc Common Stock 249,092 194,425
Fleetwood Enterprises Inc Common Stock 392,963 193,200
Raytheon Co 8.2% 01 Mar 2006 179,962 191,984
Felcor Lodging Tr Inc Common Stock 180,662 191,500
Elantec Semiconductor Inc Common Stock 299,519 191,475
Lockheed Martin Corp 7.25% 15 May 2006 192,835 190,981
Intl Bk for Recon & Dev 7% 27 Jan 2005 183,099 188,100
Electronic Arts Common Stock 176,394 187,550
Pericom Semiconductor Corp Common Stock 287,760 186,850
Aztar Corp Common Stock 147,822 185,006
Merrill Lynch & Co Inc 6% 17 Feb 2009 171,738 184,653
Time Warner Entmt Co L P 7.25% 01 Sep 2008 180,242 183,957
Federal Natl Mtg Assn 7.125% 15 Jun 2010 172,153 183,760
Rock Tenn Co Common Stock 295,076 183,706
Cognizant Technology Solutions Class A 154,515 181,563
Insight Enterprises Inc Common Stock 195,765 181,258
Sprint Cap Corp 6.9% 01 May 2019 211,445 180,475
Keyspan Corp 7.625% 15 Nov 2010 170,691 180,421
Zoll Med Corp Common Stock 186,971 178,819
Critical Path Inc Common Stock 290,306 178,350
Cit Group Inc 7.375% 15 Mar 2003 174,815 178,094
Northwest Airls Corp Class A 155,893 177,738
Telefonica Europe BV 7.75% 15 Sep 2010 174,381 177,205
Fed Hm Ln PC G10777 9% 01 Jun 2010 179,767 176,111
Alpharma Inc Class A 223,242 175,500
Scansource Inc Common Stock 194,934 175,500
Apache Corp Common Stock 112,546 175,156
Mapinfo Corp Common Stock 161,483 174,825
Rockwell Intl Corp New Common Stock 144,737 171,450
Albertsons Inc Common Stock 194,254 169,600
Verizon Global Fdg Corp 7.25% 01 Dec 2010 165,297 168,455
Digital Lightwave Inc Common Stock 372,440 164,775
Energy East Corp 7.75% 15 Nov 2003 159,704 164,299
99 Cents Only Stores Common Stock 269,431 164,250
Tollgrade Communications Common Stock 344,597 164,250
Virata Corp Common Stock 856,951 163,125
-35-
Residential Fdg Mtg Secs II 1% 20 Sep 2022 $ 161,350 $ 161,096
FMAC Ln Recievables Tr 6.404% 24 Dec 2028 160,508 160,508
Arvinmeritor Inc Common Stock 338,779 160,388
Martin Marietta Corp 6.5% 15 Apr 2003 156,726 160,043
Biosite Diagnostics Inc Common Stock 144,490 157,706
Getty Images Inc Common Stock 197,100 156,800
Visteon Corp Common Stock 201,457 156,400
Cheesecake Factory Common Stock 139,285 156,225
Art Technology Group Inc Common Stock 163,573 155,869
Caminus Corp Common Stock 225,016 153,450
Mitchell Energy & Dev Corp Class A 85,088 153,125
US West Cap Fdg Inc 6.375% 15 Jul 2008 148,131 152,757
Celgene Corp Common Stock 160,272 152,750
Associates Corp North America 6.95% 01 Nov 2018 147,872 151,835
Diversa Corp Common Stock 158,500 150,675
Lyondell Chemical Co Common Stock 179,483 150,063
Documentum Inc Common Stock 161,828 149,063
Ford Mtr Cr Co 5.75% 23 Feb 2004 149,363 146,108
Accredo Health Inc Common Stock 121,166 145,544
PPL Corp Common Stock 78,240 144,600
Playtex Prods Inc Common Stock 177,100 144,375
C&D Technologies Common Stock 186,511 142,519
Federal Home Ln Mtg Corp 1% 15 Feb 2023 141,576 142,169
Aurora Bioscience Corp Common Stock 336,226 141,469
Stanford Microdevices Inc Common Stock 122,357 136,800
Ryerson Tull Inc New Common Stock 259,589 135,094
Ann Taylor Stores Corp Common Stock 158,269 134,663
Chase Manhattan Corp New 7% 15 Nov 2009 127,364 133,988
Speechworks Intl Inc Common Stock 201,098 132,469
Compucredit Corp Common Stock 293,524 132,313
Millennium Chemicals Inc Common Stock 198,569 132,313
Carreker Corp Common Stock 64,600 132,050
Avocent Corp Common Stock 200,272 130,302
Radio One Inc Class A 142,931 129,319
Iona Technologies PLC Common Stock 135,926 127,300
Filenet Corp Common Stock 121,872 126,031
US Dept Veteran Affairs Remic 1% 15 Sep 2022 179,899 125,873
-36-
Broadwing Inc Common Stock $ 125,393 $ 123,188
Supertex Inc Common Stock 151,393 122,547
Telefonica Europe BV 7.75% 15 Sep 2010 119,575 121,512
Syngenta AG Common Stock 61,682 117,786
Mobile Mini Inc Common Stock 107,314 117,300
Ford Mtr Co Del 6.375% 01 Feb 2029 118,640 117,270
Benficial Home Equity Ln Tr 1% 28 Apr 2026 115,382 115,645
Cost Plus Inc Calif Common Stock 113,172 114,563
United States Treasury Bonds 7.875% 15 Feb 2021 115,397 114,525
American Finl Group Inc Ohio Common Stock 93,761 114,219
International Paper Co 8.125% 08 Jul 2005 112,807 114,209
CVS Corp Common Stock 101,489 113,881
Webtrends Corp Common Stock 115,988 112,856
Christopher & Banks Corp Common Stock 149,807 112,750
United States Treasury Notes 5.5% 31 May 2003 107,863 110,859
Conoco Inc 5.9% 15 Apr 2004 106,005 109,227
Reliance Stl & Alum Co Common Stock 88,210 107,663
JNI Corp Common Stock 276,866 106,631
Civic Bancorp Common Stock 105,747 105,840
Pulte Corp Common Stock 109,454 105,469
CEC Entmt Inc Common Stock 78,278 104,081
Actel Corp Common Stock 180,445 104,006
FNMA Pool 393419 7% 01 Aug 2012 102,899 103,769
General Mtrs Accep Corp 7.75% 19 Jan 2010 99,276 103,202
United States Treasury Notes 6.25% 31 Jul 2002 100,094 101,391
United States Treasury Notes 6.125% 31 Aug 2002 100,141 101,328
United Rentals Inc Common Stock 161,993 100,781
Education Mgmt Corp Common Stock 69,762 100,100
E Bay Inc Common Stock 108,199 99,000
Methode Electrs Inc Class A 227,885 98,631
FNMA Pool 252980 7% 01 Jan 2030 94,314 97,603
Spanish Broadcasting Sys Inc Class A 107,250 97,500
Central Vt Public Service Common Stock 115,248 95,672
Cognex Corp Common Stock 154,770 95,138
Merrill Lynch & Co Inc 1% 15 Jun 2021 96,543 94,098
Compuware Corp Common Stock 91,886 93,750
Lattice Semiconductor Corp Common Stock 145,801 91,875
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Jabil Circuit Inc Common Stock $ 131,318 $ 91,350
Business Objects S A Common Stock 139,014 90,600
Photon Dynamics Inc Common Stock 250,782 90,000
Hispanic Broadcasting Corp Common Stock 104,755 89,250
National Australia Bk Ltd 8.6% 19 May 2010 85,858 88,611
Cooper Tire & Rubr Co Common Stock 175,874 88,188
Sprint Corp Common Stock 169,569 85,313
Niku Corporation Common Stock 125,980 84,825
Morgan Guaranty Trust Co of NY 1% 31 Dec 2000 82,014 82,014
Aames Mortgage Trust 1% 15 Jun 2028 77,174 77,010
Harsco Corp Common Stock 62,400 74,063
Linens N Things Inc Common Stock 77,736 71,825
Barnes & Noble Inc Common Stock 69,373 71,550
Oak Technology Common Stock 208,470 71,238
Brush Ebgineered Matls Inc Common Stock 87,491 70,656
Curtiss Wright Corp Common Stock 40,214 69,750
Russ Berrie & Co Inc Common Stock 68,208 67,600
Vendee Mtg TR 0% 15 Feb 2026 69,210 66,784
Norfolk Southn Corp Common Stock 138,258 66,563
US Dept Veteran Affairs Remic 1% 15 Sep 2024 69,803 64,837
Schuler Homes Inc Common Stock 40,538 62,100
Merix Corp Common Stock 188,319 61,525
Bay View Cap Corp Del Common Stock 247,391 61,250
Dollar Tree Stores Inc Common Stock 67,056 61,250
Websense Inc Common Stock 81,935 60,900
Firepond Inc Common Stock 147,362 56,625
International Business Machs 5.375% 01 Feb 2009 53,757 55,503
Integrated Silicon Solution Common Stock 102,284 54,625
Silicon Storage Technology Inc Common Stock 75,137 51,975
Corvis Corp Common Stock 75,600 50,006
Mks Instrs Inc Common Stock 70,366 46,500
Parametric Technology Corp Common Stock 34,379 44,344
Boston Scientific Corp Common Stock 63,934 42,431
PC Connection Inc Common Stock 117,217 41,500
Concurrent Computer Corp Common Stock 104,697 38,163
Marsh & McLennan Cos Inc Common Stock 35,347 35,100
United States Treasury Notes 5.5% 28 Feb 2003 29,527 30,220
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US Dept Veterans Affairs GTD 1% 15 Jun 2026 $ 38,662 $ 30,015
Natural Microsystems Corp Common Stock 123,238 29,625
GNMA II POOL 080094 1% 20 Jul 2027 29,412 29,584
Aames Mortgage Trust Common Stock 27,857 27,857
Hershey Foods Corp Common Stock 18,649 25,750
Advanced Switching Comm Inc Common Stock 87,956 24,863
Aclara Biosciences Inc Common Stock 68,230 20,663
FNMA Pool 390375 7% 01 Jul 2012 20,051 20,220
US Dept Veteran Affairs Remic 1% 15 Jun 2024 20,193 19,867
Freemarkets Inc Common Stock 18,081 9,500
US Dept Veteran Affairs Remic 1% 15 Sep 2024 11,408 9,341
Ralston Purina Co Common Stock 5,065 5,225
United Therapeutics Corp Del Common Stock 9,564 2,950
Crescent Real Estate Equities Common Stock 1,978 2,225
Lincoln Elec Hldgs Inc Common Stock 1,846 1,963
Matrixone Inc Common Stock 3,814 1,819
Williams Communications Group Common Stock 1,165 1,175
--------------- ---------------
$ 3,469,527,919 $ 3,988,957,330
=============== ===============
* Party-in-Interest
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Exhibit 1
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INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement (No.
33-59853) of Northrop Grumman Corporation on Form S-8 of our report dated June
27, 2001, appearing in this annual report on Form 11-K of the Northrop Grumman
Savings and Investment Plan for the year ended December 31, 2000.
/s/ Deloitte & Touche LLP
--------------------------
Los Angeles, California
June 27, 2001
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