SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 11-K

þ		ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

o		TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to                    

Commission file number 1-4448

A.

Full title of the plan and the address of the plan, if different from that of the issuer named below:

Baxter International Inc. and Subsidiaries
Incentive Investment Plan

B.

Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Baxter International Inc.
One Baxter Parkway
Deerfield, IL 60015
(847) 948-2000

 

 

Baxter International Inc.
and Subsidiaries
Incentive Investment Plan

Financial Statements and Supplemental Schedules
December 31, 2006 and 2005

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Index
December 31, 2006 and 2005

		Page(s)
Report of Independent Registered Public Accounting Firm			1
Financial Statements
Statements of Net Assets Available for Benefits as of December 31, 2006 and 2005			2
Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 2006 and 2005			3
Notes to Financial Statements			4 - 10
Supplemental Information
Schedule I:     Schedule of Assets (Held at End of Year) as of December 31, 2006			11 - 42
Schedule II:   Schedule of Reportable Transactions for the Year Ended December 31, 2006			43

Note:		Other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

Report of Independent Registered Public Accounting Firm

To the Participants and Administrative Committee of
the Baxter International Inc. and Subsidiaries Incentive Investment Plan

In our opinion, the accompanying statements of net assets available for benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Baxter International Inc. and Subsidiaries Incentive Investment Plan (the “Plan”) at December 31, 2006 and 2005, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America. 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 of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As further described in Note 2, the Plan adopted FASB Staff Position Nos. AAG INV-1 and SOP 94-4-1, “Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans,” as of December 31, 2006 and 2005.

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 at End of Year) and Schedule of Reportable Transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are 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. These supplemental schedules are the responsibility of the Plan’s management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP
Chicago, Illinois
June 25, 2007

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Statements of Net Assets Available for Benefits
December 31, 2006 and 2005

		2006				2005
Assets
Investments
Cash and cash equivalents		$	33,168,843			$	31,118,478
Common stock (including securities on loan of $17,081,644 in 2006 and $19,097,230 in 2005)			481,186,522				461,907,223
U.S. government and government agency issues			36,187,676				35,492,806
Corporate and other obligations (including securities on loan of $16,775,414 in 2006 and $11,742,965 in 2005)			42,547,956				38,886,788
Commingled funds			378,735,234				298,634,721
Registered investment companies			13,602,410				11,663,581
Participant loans			29,619,239				29,575,488
Synthetic guaranteed investment contracts (including securities on loan of $52,382,101 in 2006 and $93,799,223 in 2005)			612,875,198				621,691,044
Collateral held on loaned securities			87,326,904				126,971,898
Total investments at fair value			1,715,249,982				1,655,942,027
Receivables
Accrued interest and dividends			2,922,904				2,984,702
Due from brokers for securities sold			318,298				235,820
			3,241,202				3,220,522
Total assets			1,718,491,184				1,659,162,549
Liabilities
Accounts payable			2,826,722				2,747,092
Due to brokers for securities purchased			1,090,257				493,675
Collateral to be paid on loaned securities			87,326,904				126,971,898
Total liabilities			91,243,883				130,212,665
Net assets available for benefits, at fair value			1,627,247,301				1,528,949,884
Adjustment from fair value to contract value for fully benefit-responsive investment contracts			(27,502,635	)			(49,731,043	)
Net assets available for benefits		$	1,599,744,666			$	1,479,218,841

The accompanying notes are an integral part of these financial statements.

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2006 and 2005

		2006				2005
Additions to net assets attributed to
Investment income
Interest		$	36,837,148			$	35,005,489
Participant loan interest			1,943,886				1,619,102
Dividends			6,805,226				5,890,923
Net appreciation in fair value of investments			114,810,943				58,542,900
			160,397,203				101,058,414
Contributions
Sponsor			22,683,169				22,051,130
Participant			65,392,572				59,325,689
			88,075,741				81,376,819
Transfer from other plan			—				3,123,809
Total additions			248,472,944				185,559,042
Deductions from net assets attributed to
Benefits paid			123,741,653				116,792,825
Plan expenses			4,205,466				4,171,025
Total deductions			127,947,119				120,963,850
Net increase			120,525,825				64,595,192
Net assets available for benefits
Beginning of year			1,479,218,841				1,414,623,649
End of year		$	1,599,744,666			$	1,479,218,841

The accompanying notes are an integral part of these financial statements.

Baxter International Inc. and Subsidiaries
Incentive Investment Plan

1.		General Description of the Plan
		The following description of the Baxter International Inc. and Subsidiaries Incentive Investment Plan (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan agreement for more complete information.
		The Plan allows tax deferred contributions in compliance with Section 401(k) of the Internal Revenue Code. Eligible participants may make pre-tax contributions up to 20% of their eligible annual compensation within certain limitations. The Plan sponsor, Baxter International Inc. (“Baxter”), matches participant contributions up to a maximum of 3% of the employee’s compensation. Participant contributions and Plan sponsor matching contributions are fully vested and nonforfeitable at all times. Participants may borrow up to the lesser of $50,000 or 50% of their account balance. The loans are secured by the balance in the participant’s account and bear interest at variable rates as outlined in the Plan agreement.
		Participants or their beneficiaries may elect lump-sum benefit payments, or benefits may be paid in installments. Subject to certain provisions specified in the Plan agreement, employed participants may withdraw their pre-tax contributions and related earnings in cases of financial hardship.
		Upon enrollment in the Plan, a participant may direct contributions to any of eight investment options: Stable Income Fund, Baxter Common Stock Fund, Composite Fund, General Equity Fund, S&P 500 Flagship Fund, International EAFE Equity Index Fund, Small Cap Fund and the Self-Managed Fund. In addition, certain participants may maintain shares received in connection with Baxter’s 1996 spin-off of Allegiance Corporation (“Allegiance”), which were subsequently converted into common shares of Cardinal Health Inc. (“Cardinal”) upon Cardinal’s acquisition of Allegiance in 1999. These shares are maintained in the Cardinal Health Common Stock Fund. Additionally, certain participants maintain shares in Edwards Lifesciences Corporation. These shares were placed into the Edwards Lifesciences Common Stock Fund in connection with Baxter’s 2000 spinoff of its cardiovascular business. Participants are not able to make contributions to the Cardinal Health Common Stock Fund or the Edwards Lifesciences Common Stock Fund.
2.		Summary of Significant Accounting Policies
		New Accounting and Disclosure Standard The Plan adopted Financial Accounting Standards Board Staff Position Nos. AAG INV-1 and SOP 94-4-1, “Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans” (the “FSP”) for the plan year ending December 31, 2006. The FSP requires that the Statement of Net Assets Available for Benefits present the fair value of the investment contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared on a contract value basis for fully benefit-responsive investment contracts. As required, the FSP was applied retroactively to the Statement of Net Assets Available for Benefits as of December 31, 2005. The adoption of the FSP had no impact on net assets. See Synthetic Guaranteed Investment Contracts section below for further information.
		Basis of Accounting The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting. Accordingly, investment income is recognized when earned and expenses are recognized when incurred.

Baxter International Inc. and Subsidiaries
Incentive Investment Plan

Valuation of Investments
The valuation of Plan investments is determined as follows:
Cash and cash equivalents		Value based on cost which approximates fair value
Common stock:
Traded on national exchanges		Value based on composite pricing of all national closing sales prices on the valuation date
Traded on over-the-counter market		Value based on last reported sale price defaulting to bid quotations
U.S. government and government agency issues		Value based on the last reported sale price from a national security exchange on the valuation date
Corporate and other obligations		Value based on the last reported sale price from a national security exchange on the valuation date
Commingled funds		Value based on closing prices of the underlying securities on the valuation date
Registered investment companies		Value based on the last reported sale price from a national security exchange on the valuation date
Participant loans		Valued based on outstanding principal balance which approximates fair value
Synthetic guaranteed investment contracts		Value based on closing prices of the underlying securities on the valuation date
Collateral held on loaned securities		Value based on cost which approximates fair value

Income Recognition
Plan investment return includes dividend and interest income, gains and losses on sales of investments and unrealized appreciation or depreciation of investments. Purchases and sales of investments are recorded on a trade date basis. Dividends are recorded on the ex-dividend date.

Baxter International Inc. and Subsidiaries
Incentive Investment Plan

		The financial statements reflect the net appreciation or depreciation in the fair value of the Plan’s investments. This net appreciation or depreciation consists of realized gains and losses calculated as the difference between proceeds from a sales transaction and cost determined on a moving average basis, and unrealized gains and losses calculated as the change in the fair value between beginning of the year (or purchase date if later) and the end of the year.
		Synthetic Guaranteed Investment Contracts The Plan holds synthetic guaranteed investment contracts (“GICs”) as part of the Stable Income Fund. The synthetic GICs provide for a fixed return on principal over a specified time through fully benefit-responsive contracts issued by Aegon Institutional Markets and Bank of America NT & SA. The portfolio of assets underlying the synthetic GICS primarily includes U.S government and government agency issues, corporate and other bonds, and commingled trust funds.
		The fair value of the synthetic GICs equals the total of the fair value of the underlying assets plus the fair value of the wrapper contracts. The fair value of the wrapper contracts is computed using a replacement cost approach that incorporates a comparison of the current fee rate on similar wrapper contracts to the fee being paid by the Plan. Using this approach, the fair value of the wrapper contracts was zero at both December 31, 2006 and 2005.
		Fully benefit-responsive synthetic GICs are valued at contract value, rather than fair value, for determining the net assets available for benefits. Contract value represents contributions, plus earnings, less participant withdrawals and administrative expenses. The wrapper contracts used by the Plan are fully benefit-responsive because the wrapper contract issuers are contractually obligated to make up any shortfall in the event that the underlying asset portfolio has been liquidated and is inadequate to cover participant withdrawals and transfers at contract value. There are currently no reserves against contract values for credit risk of the contract issuers or any other risk. The contract value for the synthetic GICs was $585,372,563 and $571,960,001 at December 31, 2006 and 2005, respectively.
		The crediting interest rate, which is reset quarterly, can never fall below zero. The crediting rate formula smoothes the impact of interest rate changes on participant returns by amortizing any difference between market value and book value over a period of years equal to the duration of the portfolio benchmark. The average yield on the synthetic GICs was approximately 4.48% and 2.14% at December 31, 2006 and 2005, respectively. The average interest rate credited to participants on the synthetic GICs was approximately 4.73% and 4.49%, respectively, for the years ended December 31, 2006 and 2005. Credit ratings for both issuers of the synthetic GICs at December 31, 2006 and 2005 were AA.
		Events that lead to market value withdrawals that exceed 20 percent of the contract value would limit the ability of the Plan to transact at contract value with participants. These events include restructurings, early retirement plans, divestitures, bankruptcies or as the result of legal, tax or regulatory changes. The Plan sponsor believes that the occurrence of any such event is remote.
		The wrapper providers can only terminate at a value different than contract value under an event of default (that was not remedied) such as failure to follow the terms of the contract. If a wrapper provider would like to exit the contract for another reason, the Plan can maintain the contract through an extended termination process designed to ensure continued benefit-responsive treatment for withdrawals.

Baxter International Inc. and Subsidiaries
Incentive Investment Plan

		Payment of Benefits Benefits are recorded when paid.
		Other Due from or due to brokers for securities sold or purchased, respectively, represent the net cash value of security trades initiated but not yet settled at each respective year-end.
		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 amounts reported in the financial statements and related notes to the financial statements. Changes in such estimates may affect amounts reported in future periods.
		Risks and Uncertainties The Plan provides for various investment options which invest in any combination of registered investment companies, U.S. government and government agency issues, corporate and other obligations, common stock, commingled funds, synthetic guaranteed investment contracts and short-term investments. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefits and the Statements of Changes in Net Assets Available for Benefits. Individual participants’ accounts bear the risk of loss resulting from fluctuations in investment values.
3.		Eligibility Requirements
		Employees become eligible to participate in the Plan as of the first day of the month following the completion of thirty days of employment. Eligible employees are those who meet the following requirements:

	A.		U.S. employees of Baxter or its subsidiaries which have adopted the Plan;
	B.		U.S. employees not covered by a collective bargaining agreement unless the agreement provides for coverage under the Plan; and
	C.		U.S. employees who are not leased employees.

4.		Administration of the Plan
		State Street Bank and Trust Company (the “Trustee”) serves as trustee and Citistreet LLC serves as recordkeeper for the Plan.
		The Administrative Committee administers the Plan. The Investment Committee has authority, responsibility and control over the management of the assets of the Plan. Members of both committees are appointed by the Board of Directors of Baxter and are employees of Baxter.
		Substantially all investment manager, trustee and administrative fees incurred in the administration of the Plan were paid from the assets of the Plan.

Baxter International Inc. and Subsidiaries
Incentive Investment Plan

5.		Investments
		Investments representing five percent or more of the Plan’s net assets available for benefits at December 31, 2006 and 2005 are summarized as follows:

		2006				2005
Baxter Common Stock, 3,054,026 shares and 3,387,837 shares at December 31, 2006 and 2005, respectively		$	141,676,250			$	127,552,068
S&P500 Flagship Fund			190,704,647				171,590,245
International EAFE Equity Index Fund			107,860,515				66,909,749

Investments as of December 31, 2006 and 2005 are segregated into various investment fund options as follows:

		2006				2005
Cash (available for investment)		$	2,319,204			$	2,277,049
Stable Income Fund			624,175,516				627,100,610
Baxter Common Stock Fund			143,768,460				134,101,457
Composite Fund			169,420,156				168,713,436
General Equity Fund			213,002,241				203,616,384
Cardinal Health Common Stock Fund			13,053,966				15,656,923
S&P500 Flagship Fund			191,119,118				171,590,245
International EAFE Equity Index Fund			108,219,284				67,137,153
Edwards Lifesciences Common Stock Fund			10,980,586				11,239,586
Small Cap Fund			79,995,302				60,019,682
Self-Managed Fund			42,250,006				37,942,116
Loan Fund			29,619,239				29,575,488
Collateral held on loaned securities			87,326,904				126,971,898
Total investments at fair value			1,715,249,982				1,655,942,027
Adjustment from fair value to contract value for Stable Income Fund			(27,502,635	)			(49,731,043	)
Total investments		$	1,687,747,347			$	1,606,210,984

The fund amounts above include $30,849,639 and $28,841,429 of cash and cash equivalents at December 31, 2006 and 2005, respectively, which are awaiting investment in their respective portfolios. These amounts are primarily maintained in the State Street Bank Short-Term Investment Fund.

Baxter International Inc. and Subsidiaries
Incentive Investment Plan

Net appreciation (depreciation) in fair value for each significant class of investment, which includes realized and unrealized gains and losses, is as follows:

		2006				2005
U.S. government and government agency issues		$	15,044			$	(472,779	)
Corporate and other obligations			244,970				(900,695	)
Baxter common stock			27,164,364				11,180,872
Other common stock			28,564,197				29,349,284
Registered investment companies			1,029,910				380,801
Commingled funds			57,792,458				19,005,417
		$	114,810,943			$	58,542,900

6.		Securities Lending Transactions
		The Plan participates in a securities lending program with the Trustee. The program allows the Trustee to loan securities, which are assets of the Plan, to approved brokers (the “Borrowers”). The Trustee requires the Borrowers, pursuant to a security loan agreement, to deliver collateral to secure each loan. The Plan bears the risk of loss with respect to any unfavorable change in fair value of the invested cash collateral. However, the Borrower bears the risk of loss related to the decrease in the fair value of the securities collateral and, therefore, would have to deliver additional securities to maintain the required collateral. In the event of default by the Borrower, the Trustee shall indemnify the Plan by purchasing replacement securities equal to the number of unreturned loaned securities or, if replacement securities are not able to be purchased, the Trustee shall credit the Plan for the market value of the unreturned securities. In each case, the Trustee would apply the proceeds from the collateral for such a loan to make the Plan whole.
		The collateral received pursuant to securities lending transactions is reflected on the Statements of Net Assets Available for Benefits as both an asset and a liability, and has no effect on the net assets available for benefits of the Plan.
		As of December 31, 2006 and 2005, the Plan had securities on loan with a market value of $86,239,159 and $124,639,418, respectively, with cash collateral received of $87,326,904 and $126,971,898, respectively. Cash collateral was invested in a short -term commingled investment fund as of December 31, 2006 and 2005.
		Non-cash collateral of $802,508 and $260,330 received for securities on loan at December 31, 2006 and 2005, respectively, consisted of U.S. government and government agency issues held by the Trustee on behalf of the Plan. A portion of the income generated upon investment of cash collateral is remitted to the Borrowers, and the remainder is allocated between the Plan and the Trustee in its capacity as a security agent. Securities lending income allocated to the Plan amounted to $239,526 and $143,310 for 2006 and 2005, respectively. Securities lending income is classified as interest income in the Statements of Changes in Net Assets Available for Benefits.

Baxter International Inc. and Subsidiaries
Incentive Investment Plan

7.		Plan Termination
		Although it has not expressed any intent to do so, the Plan sponsor has the right under the Plan to reduce, suspend or discontinue its contributions at any time and to terminate the Plan subject to the provisions of the ERISA. The termination of the Plan would not reduce the interest of any participating employee or their beneficiaries accrued under the Plan up to the date of such termination.
8.		Tax Status of the Plan
		The Internal Revenue Service has determined and informed the Plan sponsor by a letter dated July 19, 2006 that the Plan is designed in accordance with applicable sections of the Internal Revenue Code (the “IRC”). The Plan has been amended since the date of the determination letter. The Plan sponsor believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
9.		Related Parties
		At December 31, 2006 and 2005, the Plan held units of participation in certain common/collective trust funds and short-term investment funds of State Street Bank and Trust Company, the Plan trustee, shares of common stock of Baxter, the Plan sponsor, loans with participants, units of commingled funds and registered investment companies managed by Pacific Investment Management Company, an investment manager for the Plan, and shares of common stock and fixed income securities in various affiliates of Citistreet LLC, the recordkeeper. These transactions are allowable party-in-interest transactions under ERISA and the regulations promulgated thereunder.
10.		Plan Merger
		During 2001, Baxter acquired Sera-Tec Biologicals, L.P. The Sera-Tec Biologicals 401(k) Plan was merged into the Plan effective July 2005. As a result of this merger, total assets of approximately $3.1 million were transferred into the Plan.
11.		Plan Amendment
		During 2006, Baxter amended the Plan in response to changes made to its U.S. qualified defined benefit pension plan. Employees hired on or after January 1, 2007 will receive a higher level of company contributions (an additional non-matching 3% of the employee’s compensation) in the Plan but will not be eligible to participate in the pension plan. In addition, these employees will automatically have 3% of their annual salary contributed to the Plan if they do not enroll in the Plan within 60 days of their hire date. Employees hired prior to January 1, 2007 who were not fully vested in the pension plan as of December 31, 2006 were required to elect, by February 15, 2007, to either continue their participation in the pension plan and the Plan, or to cease earning additional service in the pension plan as of December 31, 2006 and participate in the higher level of company contributions in the Plan. There was no change to the plans for employees who were fully vested in the pension plan as of December 31, 2006.

 

 

 

 

SUPPLEMENTAL SCHEDULES

Baxter International Inc. and Subsidiaries Incentive Investment Plan
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) December 31, 2006		Schedule I

Identity of Issue

Description of Investment

Cost**

Current Value

Cash and Cash Equivalents:

*

SSGA MONEY MARKET FUND

Short-Term Investment Fund

$

7,366,161

*

State Street Bank + Trust Co

Short-Term Investment Fund

25,443,915

US Dollar

US Dollar

358,767

Cash and cash equivalents

$

33,168,843

Common Stock:

21ST CENTURY HLDG CO

Common Stock

18,881

3COM CORP

Common Stock

3,699

3DICON CORP

Common Stock

2,500

3M COMPANY

Common Stock

21,374

8X8 INC

Common Stock

2,340

ABB LTD SPONSORED ADR

Common Stock

17,980

ABBOTT LABORATORIES

Common Stock

157,877

ABIOMED INC

Common Stock

3,736

ABN AMRO HLDG N V SPONSORED ADR

Common Stock

1,602

ACACIA RES CORP AR COMBIMATRIX COM

Common Stock

791

ACADIA PHARMACEUTICALS INC

Common Stock

6,153

ACCLAIM ENTERTAINMENT INC

Common Stock

4

ACCO BRANDS CORP COM

Common Stock

185

ACERGY S A SPONSORED ADR

Common Stock

7,632

ACME PACKET INC COM

Common Stock

18,370

ACTIVIDENTITY CORP COM

Common Stock

253

ACTIVISION INC

Common Stock

5,172

ADAPTIVE BROADBAND CORP

Common Stock

30

ADC TELECOMMUNICATNS INC COM NEW

Common Stock

6,204

ADEPT TECHNOLOGY INC COM NEW

Common Stock

5,738

ADOBE SYS INC

Common Stock

5,675

ADVANCED MICRO DEVICES INC

Common Stock

196,683

ADVANCED MICRO DEVICES

Common Stock

1,815,454

1,357,450

ADVANCED PHOTONIX INC CL A

Common Stock

13,662

ADVANTAGE ENERGY INCOME

Common Stock

3,175

ADVENT/CLAYMORE ENHANCED GROWTH & INCOME FD

Common Stock

5,437

AES CORP

Common Stock

813,564

1,100,461

AETNA INC

Common Stock

584,569

890,516

AFFYMETRIX INC

Common Stock

2,306

AFLAC INC

Common Stock

31,128

AGERE SYS INC COM

Common Stock

4,582

AK STEEL HLDG CORP

Common Stock

13,148

AKAMAI TECHNOLOGIES

Common Stock

1,045,763

1,116,478

AKAMAI TECHNOLOGIES INC

Common Stock

25,657

AKSYS LTD

Common Stock

161

ALCATEL LUCENT SPON ADR

Common Stock

67,545

ALCOA INC

Common Stock

16,205

ALCON INC

Common Stock

2,516,561

3,363,859

ALJ REGL HLDGS INC

Common Stock

300

ALKERMES INC

Common Stock

6,685

ALLEGHENY TECH INC

Common Stock

22,942

ALLIANCE FIBER OPTIC PRODUCTS INC

Common Stock

4,080

ALLIANCE PHARMACEUTICAL CORP COM

Common Stock

138

ALLIED CAPITAL CORP

Common Stock

6,536

ALLIED WASTE INSDS COM

Common Stock

6,145

ALLOS THERAPEUTICS INC

Common Stock

31,882

ALMADEN MINERALS LTD

Common Stock

4,500

ALMOST FAMILY INC

Common Stock

12,050

ALON USA ENERGY INC COM

Common Stock

9,208

ALTAIR NANOTECH INC

Common Stock

2,761

ALTEON INC

Common Stock

5,475

ALTRIA GROUP

Common Stock

3,325,582

3,793,841

ALTRIA GROUP INC

Common Stock

136,928

ALVARION LTD

Common Stock

3,360

AMAZON.COM INC

Common Stock

1,342

AMDOCS LTD ORD

Common Stock

7,750

AMER INTL GROUP INC

Common Stock

4,443

AMERICA MOVIL SAB DE CV

Common Stock

1,781,491

2,378,321

AMERICA MOVIL SERIES L ADR

Common Stock

16,597

AMERICAN CAPITAL STRATEGIES

Common Stock

12,572

Baxter International Inc. and Subsidiaries Incentive Investment Plan
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)		Schedule I
December 31, 2006

AMERICAN ELECTRIC POWER

Common Stock

618,523

710,076

AMERICAN INTL GROUP

Common Stock

6,622,032

7,304,488

AMERICAN ORIENTAL BIOENGINEERING INC

Common Stock

21,123

AMERICAN SAFETY INS

Common Stock

18,550

AMERICAN SCIENCE & ENGR INC

Common Stock

11,902

AMERISOURCEBERGEN CORP

Common Stock

918,043

878,424

AMGEN INC

Common Stock

112,302

AMPCO PITTSBURGH CORP

Common Stock

21,981

ANALOG DEVICES INC

Common Stock

4,930

ANDREA ELECTRONICS CORP FRMLY ANDREA RADIO CORP

Common Stock

105

ANHEUSER BUSCH COMPANIES INC

Common Stock

2,952

ANTIGENICS INC DEL

Common Stock

229

AON

Common Stock

117,406

1,300,733

APACHE

Common Stock

889,874

885,999

APOLLO GROUP INC

Common Stock

2,338

APPLE COMPUTER INC

Common Stock

144,313

APPLE INC

Common Stock

3,430,277

6,061,106

APPLERA CORP. - APPLIED BIOSYS GROUP

Common Stock

7,338

APPLIED DIGITAL SOLUTIONS INC COM

Common Stock

42,359

APPLIED MATERIALS INC

Common Stock

14,944

APPLIED MICRO CIRCUITS CORP CDT

Common Stock

1,691

APT SATELLITE HOLDING LTD

Common Stock

930

AQUA AMERICA INC

Common Stock

2,301

ARCELOR MITTAL

Common Stock

1,196,197

1,207,028

ARCHER DANIELS MIDLAND

Common Stock

26,318

ARENA PHARMACEUTICALS INC

Common Stock

775

ARES CAP CORP COM

Common Stock

6,022

ARIBA INC COM NEW

Common Stock

1,285

ARIES MARITIME TRANSPORT LIMITED SHS

Common Stock

4,585

ARKANSAS BEST CORP

Common Stock

10,800

ARMOR HLDGS INC DEL

Common Stock

2,742

AROTECH CORP COM NEW

Common Stock

433

ARRHYTHMIA RESEARCH TECHNOLOGY INC

Common Stock

14,679

ASTA FUNDING INC

Common Stock

15,220

ASTRAZENECA PLC- SPONS ADR

Common Stock

2,410

AT&T INC

Common Stock

1,226,543

1,675,646

AT&T INC COM

Common Stock

53,518

ATARI INC

Common Stock

2,736

ATHEROGENICS INC

Common Stock

3,964

ATSI COMMUNICATIONS INC COM NEW

Common Stock

31

AUDIOCODES LTD

Common Stock

1,874

AUTODESK INC

Common Stock

1,416

AUTOMATIC DATA PROCESSING INC

Common Stock

14,775

AUTOZONE INC NEV

Common Stock

13,058

AVANEX CORP

Common Stock

1,890

AVANIR PHARMACEUTICALS

Common Stock

2,749

AVI BIOPHARMA INC

Common Stock

954

AVIS BUDGET GROUP INC

Common Stock

1,518

B & G FOODS INC

Common Stock

6,006

BACK YD BURGERS INC

Common Stock

8,925

BACKWEB TECHNOLOGIES LTD

Common Stock

779

*

BANK AMERICA CORP

Common Stock

4,798,300

5,605,919

BANK NEW YORK INC

Common Stock

9,477

*

BANK OF AMERICA CORP

Common Stock

110,080

BARCLAYS BK PLC

Common Stock

1,364

BARR LABS INC

Common Stock

11,227

*

BAXTER INTERNATIONAL

Common Stock

141,676,250

BAYER AG

Common Stock

11,910

BEA SYSTEMS INC

Common Stock

126

BEACON PWR CORP COM

Common Stock

15,840

BEMA GOLD CORP

Common Stock

47,250

BERKSHIRE HATHAWAY INC

Common Stock

54,990

BERKSHRE HATHAWAY INC

Common Stock

1,191,469

1,628,010

BEST BUY INC

Common Stock

54,502

BG GROUP PLC

Common Stock

6,844

BHP BILLITON LTD

Common Stock

75,525

BIOCRYST PHARMACEUTICALS INC

Common Stock

23,120

BIOGEN IDEC INC

Common Stock

27,546

BIOMERICA INC

Common Stock

5,600

BIOMET INC

Common Stock

3,095

BIOMIRA INC

Common Stock

1,140

BIOPURE CORP

Common Stock

144

BJ SERVICES CO COM

Common Stock

1,410

BJ SVCS CO

Common Stock

659,123

595,997

BLACK & DECKER CORP

Common Stock

926,911

907,481

BLACK BOX CORP

Common Stock

2,100

Baxter International Inc. and Subsidiaries Incentive Investment Plan
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) December 31, 2006		Schedule I

BLACKBAUD INC

Common Stock

7,347

BLACKROCK CORPORATE HIGH YIELD

Common Stock

2,680

BLOCK (H&R) INC

Common Stock

9,966

BO PLC

Common Stock

2,961,637

3,032,499

BOEING CO

Common Stock

6,384,780

7,635,533

BOEING CO

Common Stock

17,768

BOOKHAM INC COM

Common Stock

407

BORDERS GROUP MICHIGAN INC

Common Stock

898

BOSTON SCIENTIFIC

Common Stock

162,282

BOSTON SCIENTIFIC CORP

Common Stock

1,208,787

957,821

BP AMOCO PLC

Common Stock

10,065

BRADLEY PHARMACETLS INC CL A

Common Stock

1,235

BRAODCOM CORP

Common Stock

2,640,309

3,221,706

BRIGGS & STRATTON CORP

Common Stock

13,475

BRISTOL MYERS SQUIBB

Common Stock

31,222

BRITISH AWYS PLC ADR 2ND INSTALLMENT

Common Stock

13,735

BROADCOM CORP CL A

Common Stock

65,589

BROADWING CORP COM

Common Stock

54,889

BROCADE COMMUNICATIONS SYS INC

Common Stock

82

BORG WARNER

Common Stock

729,894

710,512

BROOKFIELD ASSET MGMT INC COM

Common Stock

4,834

BROOKFIELD HOMES CORP

Common Stock

74

BROOKLINE BANCORP INC DEL COM

Common Stock

7,652

BROWN FORMAN CORP CL B NON VTG

Common Stock

2,318

BRYN MAWR BK CORP

Common Stock

2,364

BSI2000 INC

Common Stock

15

BUILDERS FIRSTSOURCE INC COM

Common Stock

1,605

C S X CORP

Common Stock

12,134

CAL MAINE FOODS INC

Common Stock

8,580

CALAMOS CONV OPPORTU NITIES & INCOME FD

Common Stock

10,296

CALAMP CORP

Common Stock

106,563

CALLWAVE INC DEL

Common Stock

1,345

CALPINE CORP

Common Stock

4,777

CAMBRIDGE DISPLAY TECHNOLOGY INC

Common Stock

535

CAMECO CORP

Common Stock

2,023

CAMPBELL SOUP CO

Common Stock

100

CANETIC RES TR COM

Common Stock

7,773

CAPSTEAD MORTGAGE CORP

Common Stock

4,150

CAPSTONE TURBINE CORP

Common Stock

12,300

CARDIAC SCIENCE CORP

Common Stock

242

CARDINAL COMM INC

Common Stock

5

CARDINAL HEALTH INC

Common Stock

12,971,065

CARDIOTECH INTL INC

Common Stock

975

CARMAX INC

Common Stock

20,058

CARNIVAL CORP PAIRED & 1 TR SH BEN INT P&O PRINCESS SPL VTG TR

Common Stock

4,905

CASCADE BANCORP

Common Stock

25,196

CATERPILLAR INC

Common Stock

650,098

CBIZ INC COM

Common Stock

1,673

CBS CORP

Common Stock

2,715,097

3,310,557

CBS CORP NEW CL B

Common Stock

25,117

CDC CORPORATION

Common Stock

47,500

CECO ENVIRONMENTAL CORP

Common Stock

4,485

CELGENE CORP

Common Stock

21,229

CELL GENESYS INC

Common Stock

203

CELL THERAPEUTICS INC

Common Stock

525

CEMEX S A SPONS ADR NEW REP ORD

Common Stock

10,017

CENTERPLATE INC

Common Stock

7,600

CENTRAL FD CDA

Common Stock

20,548

CENVEO INC

Common Stock

16,960

CERADYNE INC

Common Stock

3,503

CERUS CORP

Common Stock

20,510

CHAPARRAL STL CO DEL COM

Common Stock

6,662

CHARTER COMM INC DEL CL A

Common Stock

4,896

CHESAPEAKE ENERGY CORPORATION OKLAHOMA

Common Stock

1,687,846

CHEVRON CORP

Common Stock

3,145,752

3,889,036

CHEVRONTEXACO CORP

Common Stock

73,640

CHICAGO MERCANTILE EXCHANGE

Common Stock

937,549

1,056,305

CHINA ENERGY SVGS TECHNOLOGY INC

Common Stock

80

CHINA FD INC

Common Stock

10,254

CHINA MOBILE LTD SPONS ADR

Common Stock

12,966

CHINA PETEROLEUM & CHEM CORP

Common Stock

17,046

CHINA PRECISION STL INC

Common Stock

11,287

CHINA YUCHAI INTERNATIONAL LTD

Common Stock

13,780

CHUBB CORP

Common Stock

1,770,113

2,109,268

CIENA CORP COM NEW DELAWARE

Common Stock

55

CIGNA

Common Stock

520,052

1,090,558

CINCINNATI FINL CORP

Common Stock

2,265

CIPHERGEN BIOSYSTEMS INC

Common Stock

74,760

Baxter International Inc. and Subsidiaries Incentive Investment Plan
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) December 31, 2006		Schedule I

CISCO SYS INC

Common Stock

413,202

CISCO SYSTEMS

Common Stock

896,117

1,186,602

CISCO SYSTEMS INC

Common Stock

3,578,786

4,120,744

*

CITIGROUP

Common Stock

5,789,609

6,644,987

*

CITIGROUP INC

Common Stock

127,332

CITIZENS COMMUNICATIONS CO

Common Stock

13,091

CLARENT CORP

Common Stock

2

CLOROX

Common Stock

1,235,012

1,392,618

CMGI INC

Common Stock

5,360

CNOOC LTD SPONSORED ADR

Common Stock

136

COACH INC

Common Stock

25,776

COASTAL FINL CP

Common Stock

10,807

COCA COLA BOTTLING CO

Common Stock

4,380

COCA COLA CO

Common Stock

11,123

COGENT INC

Common Stock

550

COGNIZANT TECHNOLOGY SOLUTIONS INC

Common Stock

25,000

COHEN & STEERS PREM INCOME RLTY FD INC

Common Stock

16,726

COLGATE-PALMOLIVE CO

Common Stock

3,262

COMCAST CORP

Common Stock

2,297,683

3,554,003

COMCAST CORP NEW

Common Stock

2,902,739

3,087,023

COMDISCO HLDG CO INC

Common Stock

250

COMMERCE GROUP INC MASS

Common Stock

2,975

COMMTOUCH SOFTWARE LTD

Common Stock

600

COMPANHIA SIDERURGICA NACIONAL

Common Stock

7,674

COMPANHIA VALE DO RIO DOCE SPONS ADR

Common Stock

1,190

COMPASS MINERALS INTL INC

Common Stock

15,464

COMPUCREDIT CORP

Common Stock

7,962

COMPUWARE CORP

Common Stock

8,330

CONAGRA FOODS INC

Common Stock

8,100

CONEXANT SYSTEMS, INC.

Common Stock

2,244

CONOCOPHILLIPS

Common Stock

3,129,691

3,741,572

CONOCOPHILLIPS

Common Stock

146,778

CONSOL ENERGY INC

Common Stock

36

CONSULIER ENGINEERNG INC COM PAR $0.01

Common Stock

7,410

CONTANGO OIL & GAS INC COM NEW

Common Stock

14,304

CONTINENTAL AIRLS INC CL B

Common Stock

20,625

COOPER INDUSTRIES

Common Stock

244,914

303,392

CORAUTUS GENETICS INC COM

Common Stock

83

CORNING INC

Common Stock

1,150,966

1,251,746

CORNING INC

Common Stock

32,468

CORPORATE EXECUTIVE BRD CO

Common Stock

965

COSTCO WHOLESALE CORP

Common Stock

370

COTHERIX INC

Common Stock

1,349

COUNTRYWIDE FINANCIAL

Common Stock

126,834

125,664

COVAD COMMUNICATIONS GROUP INC

Common Stock

138

CREDIT SUISSE GROUP

Common Stock

2,750,779

3,087,856

CREE INC

Common Stock

3,464

CROWN CASTLE INTL

Common Stock

400,962

481,274

CRYOLIFE INC

Common Stock

6,120

CRYSTALLEX INTL CORP

Common Stock

15,837

CSX CORP

Common Stock

882,313

1,127,945

CUMBERLAND RES LTD

Common Stock

11,280

CVS CORP DEL

Common Stock

11,684

D R HORTON INC

Common Stock

7,947

DAIMLER CHRUSLER

Common Stock

750,706

933,195

DAIMLERCHRYSLER AG ORD

Common Stock

7,375

DANA CORP

Common Stock

1,390

DARDEN RESTAURANTS

Common Stock

4,017

DATALINK CORP

Common Stock

1,579

DECODE GENETICS INC

Common Stock

4,530

DEERE & CO

Common Stock

15,035

DEERFIELD TRIARC CAP CORP COM

Common Stock

10,429

DEFERAL HOME LOAN MTG

Common Stock

2,452,080

2,566,145

DELCATH SYSTEMS INC COM

Common Stock

14,800

DELL INC

Common Stock

11,667

DELPHI AUTOMOTIVE SYSTEMS

Common Stock

621

DELTA AIR LINES INC

Common Stock

4,623

DENDREON CORP

Common Stock

12,510

DHB INDUSTRIES INC

Common Stock

295

DIAMOND OFFSHORE DRILLING INC

Common Stock

8,007

DIGI INTL INC

Common Stock

896

DIGITAL LIGHTWAVE INC

Common Stock

646

DIOMED HLDGS INC COM NEW

Common Stock

370

DISCOVERY LAB INC

Common Stock

2,832

DISNEY WALT

Common Stock

1,057,873

1,423,668

DISNEY WALT CO DEL (HOLDING COMPANY)

Common Stock

151,987

DOLLAR GENERAL CORP

Common Stock

4,041

DOMINION RESOURCES INC

Common Stock

16,215

Baxter International Inc. and Subsidiaries Incentive Investment Plan
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) December 31, 2006		Schedule I

DONNELLEY R R & SONS

Common Stock

3,581

DORAL FINANCIAL CORP

Common Stock

2,870

DOT HILL SYS CORP

Common Stock

393

DOV PHARMACEUTICAL INC

Common Stock

270

DOW CHEMICAL CO

Common Stock

53,266

DRDGOLD LTD SPON ADR

Common Stock

5,400

DRIL QUIP INC

Common Stock

7,832

DU PONT E I DE NEMOURS & CO

Common Stock

38,968

DUKE ENERGY CORP NEW COM

Common Stock

59,944

DUKE REALTY CORP

Common Stock

8,180

DYNCORP INTL INC COM CL A

Common Stock

3,174

DYNEGY INC NEW CL A

Common Stock

19,005

E M C CORP MASS

Common Stock

29,436

E TRADE GROUP INC.

Common Stock

2,242

EAGLE BULK SHIPPING INC

Common Stock

5,309

EASTMAN KODAK CO

Common Stock

18,060

EATON VANCE LTD DURATION INCOME FD

Common Stock

13,898

EBAY INC

Common Stock

41,617

EDGE PETE CORP

Common Stock

1,824

EDWARDS LIFESCIENCES CORP

Common Stock

10,809,174

EL PASO CORP

Common Stock

746,754

1,011,716

EL PASO CORP

Common Stock

458

ELAN CORP PLC ADR

Common Stock

14,750

ELDORADO GOLD CORP

Common Stock

14,580

ELECTRONIC DATA SYSTEMS

Common Stock

1,081,713

1,239,650

EMBARQ CORP COM

Common Stock

3,416

EMCORE CORP

Common Stock

8,295

EMERSON ELECTRIC CO

Common Stock

26,454

EMULEX CORP COM NEW

Common Stock

2,244

ENBRIDGE INC

Common Stock

1,720

ENCORE WIRE CORP

Common Stock

1,805

ENCYSIVE PHARMACEUTICALS INC

Common Stock

4,715

ENDESA -SPONSORED ADR

Common Stock

12,700

ENERGY CONVERSION DEVICES INC

Common Stock

6,796

ENERPLUS RES FD TR UNIT SER G NEW

Common Stock

50,659

ENGLOBAL CORP COM

Common Stock

579

ENI SPA ADR

Common Stock

6,728

ENTERGY CORP

Common Stock

724,831

974,748

ENTERRA ENERGY

Common Stock

2,399

ENTRAVISION COMMUNICATIONS CORP

Common Stock

1,233

ENTREMED INC

Common Stock

656

ENVIRONMENTAL PWR CORP COM NEW

Common Stock

3,097

EON COMMUN CORP

Common Stock

864

EPICOR SOFTWARE CORP

Common Stock

6,755

EPIX PHARMACEUTICALS INC COM NEW

Common Stock

1,380

ESS TECHNOLOGY INC

Common Stock

309

EV3 INC

Common Stock

92,094

EVERGREEN INCOME ADVANTAGE FD COM SHS

Common Stock

3,735

EVERGREEN UTILS & HIGH INCOME FD

Common Stock

2,809

EXELIXIS INC

Common Stock

3,645

EXELON CORP

Common Stock

30,945

EXETER RESOURCE CORP

Common Stock

3,560

EXPEDIA INC DEL COM

Common Stock

11,035

EXPLORATION CO OF DEL INC

Common Stock

13,340

EXPRESS 1 EXPEDITED SOLUTIONS INC

Common Stock

1,905

EXPRESSJET HLDGS INC

Common Stock

8,100

EXXON MOBIL

Common Stock

3,157,229

4,211,790

EXXON MOBIL CORP

Common Stock

30,920

FEDERAL NATL MTG

Common Stock

2,639,381

3,211,490

FEDERATED DEPT STORE INC

Common Stock

12,774

FEDEX CORP

Common Stock

39,853

FINISAR CORP

Common Stock

14,535

FIRST AMERICAN CORP

Common Stock

2,034

FIRST TR MORNINGSTAR DIVID LEADERS INDEX FD SHS

Common Stock

7,056

FISERV INC

Common Stock

6,605

FLAGSTAR BANCORP INC

Common Stock

890

FLANDERS CORP

Common Stock

19,800

FLEXTRONICS INTERNATIONAL

Common Stock

2,164,100

2,177,248

FLORIDA ROCK INDS INC

Common Stock

86,100

FLUOR CORP NEW

Common Stock

1,012,249

982,944

FLUOR CORP NEW

Common Stock

14,768

FOOD TECHNOLOGY SVC INC

Common Stock

1,250

FORBES MEDI-TECH INC

Common Stock

6,326

FORD MTR CO DEL COM

Common Stock

5,708

FORDING CDN COAL TR UNIT

Common Stock

42,026

FOREST LABS INC CL A

Common Stock

6,629

FORTUNE BRANDS INC

Common Stock

635,397

699,355

FORTUNE BRANDS INC

Common Stock

8,112

Baxter International Inc. and Subsidiaries Incentive Investment Plan
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) December 31, 2006		Schedule I

FORTUNET INC

Common Stock

3,036

FOUNDATION COAL HLDGS INC

Common Stock

3,176

FOWARD INDS II

Common Stock

5,028

FPL GROUP INC

Common Stock

5,720

FRANKLIN RES

Common Stock

2,468,491

3,902,747

FRONTIER FINANCIAL CORP

Common Stock

1,754

FRONTLINE LTD

Common Stock

5,151

FUEL SYS SOLUTIONS INC COM

Common Stock

11,040

FUEL TECH INC COM

Common Stock

1,922

FUTUREMEDIA PLC-ADR

Common Stock

97

GAMESTOP CORP NEW CL A

Common Stock

17,360

GAP INC DEL

Common Stock

29,250

GARMIN LTD REG SHS

Common Stock

7,844

GASTAR EXPL LTD

Common Stock

2,150

GATEWAY INC

Common Stock

2,010

GEN VEC INC

Common Stock

2,400

GENCO SHIPPING & TRADING LIMITED SHS

Common Stock

27,940

GENENTECH INC

Common Stock

109,039

GENERAL CABLE CORP

Common Stock

6,119

GENERAL DYNAMICS CORP

Common Stock

18,587

GENERAL ELECTRIC CO

Common Stock

8,193,682

8,635,940

GENERAL ELECTRIC CO

Common Stock

242,584

GENERAL MILLS INC

Common Stock

51,840

GENERAL MOTORS CORP

Common Stock

44,114

GENEREX BIOTECHNOLOGY CORP

Common Stock

7,145

GENETECH INC

Common Stock

2,490,733

3,058,141

GENTA INC

Common Stock

1,170

GENWORTH FINANCIAL

Common Stock

2,555,822

2,747,832

GEOPHARMA INC

Common Stock

2,030

GEORESOURCES INC

Common Stock

1,733

GERDAU SA SPONS ADR

Common Stock

4,800

GETTY IMAGES INC

Common Stock

2,141

GIGAMEDIA LTD

Common Stock

29,310

GILEAD SCIENCES

Common Stock

2,773,145

3,562,319

GILEAD SCIENCES INC

Common Stock

36,750

GLOBAL HIGH INC DLR FD INC

Common Stock

13,990

GLOBAL SOURCES LTD

Common Stock

8,890

GLOBALSANTAFE CORPORATION

Common Stock

1,186,623

1,252,841

GOLDCORP INC NEW

Common Stock

77,812

GOLDMAN SACHS GROUP

Common Stock

2,318,880

3,717,840

GOLDMAN SACHS GROUP INC

Common Stock

19,479

GOODRICH CORP

Common Stock

7,044

GOOGLE INC

Common Stock

4,157,643

6,668,091

GOOGLE INC CL A

Common Stock

59,402

GRANT PRIDECO INC

Common Stock

1,988

GREY WOLF INC

Common Stock

343

GRUPO AEROPORTUARIO DEL SURESTE S A DE S V SPON ADR REPSTG SER B SHS

Common Stock

2,336

GSI GROUP INC CDA

Common Stock

1,938

GYMBOREE CORP

Common Stock

2,099

H & Q HEALTHCARE FD SH BEN INT

Common Stock

3,507

HALLIBURTON CO

Common Stock

2,898,415

3,731,827

HALLIBURTON CO HOLDING CO

Common Stock

44,819

HALOZYME THERAPEUTICS INC

Common Stock

231,115

HAMPSHIRE GROUP LTD

Common Stock

1,657

HANCOCK HOLDING CO

Common Stock

139,762

HANCOCK JOHN PFD EQUITY INCOME FD SH BEN INT

Common Stock

5,100

HANCOCK JOHN PFD INC ME FD III

Common Stock

2,241

HANSEN NATURAL CORP

Common Stock

5,726

HARKEN ENERGY CORP

Common Stock

510

HARLEY DAVIDSON INC WISC

Common Stock

7,047

HARRAH’S ENTERTAINMENT INC NFSC IS SPECIALIST IN THIS SECURITY

Common Stock

25,478

HARTFORD FINANCIAL

Common Stock

1,059,413

1,150,935

HARVEST ENERGY TR UNITS

Common Stock

14,633

HARVEST NAT RES INC COM

Common Stock

1,594

HAUPPAGUE DIGITAL

Common Stock

17,552

HEADWATERS INC

Common Stock

28,752

HECLA MINING CO

Common Stock

38,300

HELIX ENERGY SOLUTIONS GROUP INC

Common Stock

784

HENRY JACK & ASSOCIATES INC

Common Stock

3,980

HERCULES OFFSHORE INC COM

Common Stock

20,230

HERSHEY FOODS CORP

Common Stock

11,046

HERTZ GLOBAL HOLDINGS

Common Stock

662,956

758,463

HEWLETT PACKARD CO

Common Stock

3,856,728

4,487,180

HEWLETT-PACKARD CO

Common Stock

56,677

HEXCEL CORP COM NEW

Common Stock

8,705

HILTON HOTELS

Common Stock

1,415,128

1,680,575

HI-TECH PHARMACAL INC

Common Stock

5,172

HOLLIS-EDEN PHARMA INC

Common Stock

368