TY 2010 Form 990PF

- TIN:

Form990-PF

Department of the Treasury
Internal Revenue Service

Return of Private Foundation

or Section 4947(a)(1) Nonexempt Charitable Trust
Treated as a Private Foundation

Note. The foundation may be able to use a copy of this return to satisfy state reporting requirements.

OMB No. 1545-0052

2010

For calendar year 2010, or tax year beginning 01-01-2010 , and ending 12-31-2010

Check all that apply:Initial returnInitial return of a former public charityFinal return

Amended returnAddress changeName change

Name of foundation
JOE AND ARLENE WATT FOUNDATION INC

Number and street (or P.O. box number if mail is not delivered to street address)PO BOX 6085 Room/suite

City or town, state, and ZIP code
SHERIDAN, WY82801

A Employer identification number

83-0330482

B Telephone number (see page 10 of the instructions)

(307) 672-1493

C If exemption application is pending, check here bullet

D 1. Foreign organizations, check here . bullet

H Check type of organization: Section 501(c)(3) exempt private foundation
Section 4947(a)(1) nonexempt charitable trustOther taxable private foundation 2. Foreign organizations meeting the 85% test,
check here and attach computation bullet

I Fair market value of all assets at end
of year (from Part II, col. (c),
line 16) bullet

$21,999,322J Accounting method: Cash Accrual
Other (specify)
(Part I, column (d) must be on cash basis.)

E If private foundation status was terminated
under section 507(b)(1)(A), check here bullet

F If the foundation is in a 60-month termination
under section 507(b)(1)(B), check here bullet

	Analysis of Revenue and Expenses (The total of amounts in columns (b), (c), and (d) may not necessarily equal the amounts in column (a) (see page 11 of the instructions).)	(a) Revenue and expenses per books		(b) Net investment income	(d) Disbursements for charitable purposes (cash basis only)


1	Contributions, gifts, grants, etc., received (attach schedule)
2	Check
3	Interest on savings and temporary cash investments
4	Dividends and interest from securities......	607,435		607,435
5a	Gross rents..............
b	Net rental income or (loss)
6a	Net gain or (loss) from sale of assets not on line 10		66,474
b	Gross sales price for all assets on line 6a 5,098,785
7	Capital gain net income (from Part IV, line 2)...			66,474
8	Net short-term capital gain.........
9	Income modifications...........
10a	Gross sales less returns and allowances
b	Less: Cost of goods sold....
c	Gross profit or (loss) (attach schedule).....
11	Other income (attach schedule).......		22,444	22,444
12	Total. Add lines 1 through 11........	696,353		696,353
13	Compensation of officers, directors, trustees, etc.
14	Other employee salaries and wages......
15	Pension plans, employee benefits.......
16a	Legal fees (attach schedule).........
b	Accounting fees (attach schedule).......		1,500	1,125	375
c	Other professional fees (attach schedule)....		81,515	81,515
17	Interest...............
18	Taxes (attach schedule) (see page 14 of the instructions)		7,477	265	12
19	Depreciation (attach schedule) and depletion...
20	Occupancy..............
21	Travel, conferences, and meetings.......
22	Printing and publications..........
23	Other expenses (attach schedule).......		110	55	55
24	Total operating and administrative expenses.
	Add lines 13 through 23..........	90,602		82,960	442
25	Contributions, gifts, grants paid........	923,500			923,500
26	Total expenses and disbursements. Add lines 24 and 25	1,014,102		82,960	923,942
27	Subtract line 26 from line 12:
a	Excess of revenue over expenses and disbursements	-317,749
b	Net investment income (if negative, enter -0-)			613,393
c	Adjusted net income (if negative, enter -0-)...

For Privacy Act and Paperwork Reduction Act Notice, see page 30 of the instructions.

Cat. No. 11289X Form 990-PF (2010)

Form 990-PF (2010)

Page 2

Part II		Balance Sheets	Beginning of year	End of year
Part II		Balance Sheets	(a) Book Value	(b) Book Value	(c) Fair Market Value
	1	Cash—non-interest-bearing...............
	2	Savings and temporary cash investments..........	231,712	409,661	409,661
	3	Accounts receivable
		Less: allowance for doubtful accounts
	4	Pledges receivable
		Less: allowance for doubtful accounts
	5	Grants receivable.................
	6	Receivables due from officers, directors, trustees, and other
		disqualified persons (attach schedule) (see page 15 of the
		instructions)....................
	7	Other notes and loans receivable (attach schedule)
		Less: allowance for doubtful accounts
	8	Inventories for sale or use...............
	9	Prepaid expenses and deferred charges...........
	10a	Investments—U.S. and state government obligations (attach schedule)	3,836,220	2,882,833	3,029,590
	b	Investments—corporate stock (attach schedule)........	10,400,413	10,504,433	13,401,106
	c	Investments—corporate bonds (attach schedule)........	4,447,775	4,839,953	5,048,955
	11	Investments—land, buildings, and equipment: basis
		Less: accumulated depreciation (attach schedule)
	12	Investments—mortgage loans..............
	13	Investments—other (attach schedule)...........	2	2	106,849
	14	Land, buildings, and equipment: basis
		Less: accumulated depreciation (attach schedule)
	15	Other assets (describe )	41,670	3,161	3,161
	16	Total assets (to be completed by all filers—see the
		instructions. Also, see page 1, item I)	18,957,792	18,640,043	21,999,322
	17	Accounts payable and accrued expenses..........
	18	Grants payable...................
	19	Deferred revenue..................
	20	Loans from officers, directors, trustees, and other disqualified persons
	21	Mortgages and other notes payable (attach schedule)......
	22	Other liabilities (describe )
	23	Total liabilities (add lines 17 through 22)..........		0
		Foundations that follow SFAS 117, check here
		and complete lines 24 through 26 and lines 30 and 31.
	24	Unrestricted....................
	25	Temporarily restricted................
	26	Permanently restricted................
		Foundations that do not follow SFAS 117, check here
		and complete lines 27 through 31.
	27	Capital stock, trust principal, or current funds.........	18,957,792	18,640,043
	28	Paid-in or capital surplus, or land, bldg., and equipment fund
	29	Retained earnings, accumulated income, endowment, or other funds
	30	Total net assets or fund balances (see page 17 of the
		instructions)....................	18,957,792	18,640,043
	31	Total liabilities and net assets/fund balances (see page 17 of
		the instructions)..................	18,957,792	18,640,043

Part III	Analysis of Changes in Net Assets or Fund Balances
1	Total net assets or fund balances at beginning of year—Part II, column (a), line 30 (must agree
	with end-of-year figure reported on prior year’s return)...............	1	18,957,792
2	Enter amount from Part I, line 27a......................	2	-317,749
3	Other increases not included in line 2 (itemize)	3
4	Add lines 1, 2, and 3..........................	4	18,640,043
5	Decreases not included in line 2 (itemize)	5
6	Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 30..	6	18,640,043

Form 990-PF (2010)

Page 3

Part IV

Capital Gains and Losses for Tax on Investment Income

(a) List and describe the kind(s) of property sold (e.g., real estate, 2-story brick warehouse; or common stock, 200 shs. MLC Co.)		(b) How acquired P—Purchase D—Donation	(c) Date acquired (mo., day, yr.)	(d) Date sold (mo., day, yr.)
1 a	1000 ALLSTATE CORPORATION	P	2009-03-27	2010-02-17
b	2417.05 FHLMC SER 3640 1.500% 03/15/	P	2010-08-25	2010-10-15
c	1218.39 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-03-20
d	500 ALLSTATE CORPORATION	P	2007-03-22	2010-02-17
e	1000 BANK OF NEW YORK MELLON CORP	P	2007-09-10	2010-10-19
	1000 DISNEY WALT CO HOLDINGS	P	2008-11-12	2010-02-01
	4073.4 FHLMC POOL M80946 5.000% 11/	P	2008-05-23	2010-12-15
	785.27 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-10-15
	700.05 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-08-15
	23.97 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-10-15
	703.33 FHLMC SERIES 3221 5.000% 09/1	P	2006-11-15	2010-12-15
	756.33 FNMA SER 2005-1 VK 5.000% 02/	P	2006-06-14	2010-08-25
	34.64 FNMA SERIES 2005-6 4.620% 04/2	P	2008-07-23	2010-02-25
	288.047 FRONTIER COMMUNICATIONS CORP	P	2008-01-09	2010-07-12
	538.048 HARBOR INTERNATIONAL FUND	P	2003-06-12	2010-08-12
	100000 MEDTRONIC INC 4.375% 09/15/10	P	2008-04-15	2010-09-15
	613.32 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-07-25
	1000 STAPLES INC	P	2003-07-10	2010-02-01
	75000 FED HOME LOAN BANK NOTE 2.000	P	2010-01-29	2010-05-05
	3.56 FHLMC SER 3640 1.500% 03/15/15	P	2010-08-25	2010-11-15
	1314.02 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-04-20
	500 ALLSTATE CORPORATION	P	2007-12-03	2010-02-17
	1305 BANK OF NEW YORK MELLON CORP	P	2009-02-12	2010-10-19
	83000 DUPONT EI NEMOUR 5.875% 01/15/	P	2008-12-10	2010-10-21
	4532.41 FHLMC POOL M80946 5.000% 11	P	2008-05-23	2010-04-15
	788.87 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-11-15
	702.96 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-09-15
	2761.78 FHLMC SERIES 2756 5.000% 07	P	2004-05-10	2010-10-15
	677.5 FHLMC SERIES 3221 5.000% 09/15	P	2006-11-15	2010-03-15
	762.65 FNMA SER 2005-1 VK 5.000% 02/	P	2006-06-14	2010-10-25
	1341.2 FNMA SERIES 2005-6 4.620% 04/	P	2008-07-23	2010-02-25
	600 GENERAL DYNAMICS CORPORATION	P	2003-06-12	2010-05-13
	800 HEWLETT PACKARD COMPANY	P	2002-07-10	2010-02-01
	50000 MERRILL LYNCH & CO 4.350% 11/2	P	2003-11-20	2010-11-24
	1448.34 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-04-25
	3750 STAPLES INC	P	2003-10-17	2010-09-13
	100000 FED HOME LOAN BANK NOTES 2.00	P	2010-05-10	2010-06-04
	2743.97 FHLMC SER 3640 1.500% 03/15/	P	2010-08-25	2010-11-15
	1690.33 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-08-20
	1000 ALLSTATE CORPORATION	P	2008-09-18	2010-02-17
	200 BECTON DICKINSON & COMPANY	P	2006-12-11	2010-07-29
	17000 DUPONT EI NEMOUR 5.875% 01/15/	P	2008-12-10	2010-10-21
	2317.55 FHLMC POOL M80946 5.000% 11	P	2008-05-23	2010-08-15
	767.52 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-05-15
	694.26 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-06-15
	33.96 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-11-15
	680.32 FHLMC SERIES 3221 5.000% 09/1	P	2006-11-15	2010-04-15
	765.83 FNMA SER 2005-1 VK 5.000% 02/	P	2006-06-14	2010-11-25
	679.98 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-02-25
	600 GENERAL DYNAMICS CORPORATION	P	2003-06-12	2010-04-05
	200 HEWLETT PACKARD COMPANY	P	2002-07-10	2010-12-17
	1600 MICROSOFT CORPORATION	P	2002-06-13	2010-06-09
	2546.35 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-10-25
	500 STATE STREET CORPORATION	P	2008-06-11	2010-05-13
	150000 FED HOME LOAN BANK NOTES 2.00	P	2009-07-22	2010-01-12
	2805.27 FHLMC SER 3640 1.500% 03/15/	P	2010-08-25	2010-09-15
	1873.92 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-10-20
	266.655 AMERICAN EUROPACIFIC GROWTH	P	2002-09-24	2010-08-12
	485 BECTON DICKINSON & COMPANY	P	2006-12-11	2010-02-01
	500 EMERSON ELECTRIC COMPANY	P	2002-12-24	2010-06-22
	1098.18 FHLMC POOL M80946 5.000% 11	P	2008-05-23	2010-05-15
	771.03 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-06-15
	679.96 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-01-15
	3912.4 FHLMC SERIES 2756 5.000% 07/	P	2004-05-10	2010-11-15
	697.51 FHLMC SERIES 3221 5.000% 09/1	P	2006-11-15	2010-10-15
	746.96 FNMA SER 2005-1 VK 5.000% 02/	P	2006-06-14	2010-05-25
	698.59 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-07-25
	1000 GENERAL ELECTRIC COMPANY	P	2002-06-13	2010-07-29
	400 HEWLETT PACKARD COMPANY	P	2002-08-22	2010-12-17
	200 MICROSOFT CORPORATION	P	2002-06-11	2010-06-09
	1203.32 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-05-25
	700 STATE STREET CORPORATION	P	2008-06-18	2010-05-13
	100000 FED HOME LOAN BANK NOTES 2.00	P	2009-12-08	2010-03-24
	239.941 FRONTIER COMMUNICATIONS CORP	P	2009-07-22	2010-07-12
	1964.38 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-11-20
	133.621 AMERICAN EUROPACIFIC GROWTH	P	2002-10-17	2010-08-12
	1000 BECTON DICKINSON & COMPANY	P	2007-03-22	2010-07-29
	500 EMERSON ELECTRIC COMPANY	P	2002-12-24	2010-04-05
	682.45 FHLMC POOL M80946 5.000% 11/	P	2008-05-23	2010-11-15
	778.12 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-08-15
	682.78 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-02-15
	2794.73 FHLMC SERIES 2756 5.000% 07	P	2004-05-10	2010-08-15
	700.41 FHLMC SERIES 3221 5.000% 09/1	P	2006-11-15	2010-11-15
	759.49 FNMA SER 2005-1 VK 5.000% 02/	P	2006-06-14	2010-09-25
	713.86 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-11-25
	100 GENERAL ELECTRIC COMPANY	P	2002-06-13	2010-07-29
	100000 HSBC FINANCE CORPORATION 4.62	P	2006-01-04	2010-09-15
	800 MICROSOFT CORPORATION	P	2002-06-13	2010-06-09
	2856.83 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-08-25
	333.163 T ROWE PRICE MID CAP GROWTH	P	2003-06-12	2010-11-29
	100000 FED HOME LOAN MTG CORP NOTES	P	2009-06-03	2010-03-03
	0.099 FRONTIER COMMUNICATIONS CORPOR	P	2009-07-22	2010-07-20
	1409.09 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-05-20
	10.458 AMERICAN EUROPACIFIC GROWTH F	P	2002-11-13	2010-08-12
	100000 CATERPILLAR FIN SERV CORP 4.3	P	2009-04-15	2010-06-01
	200000 FED FARM CREDIT BANK NOTES 6.	P	2008-09-02	2010-07-13
	1969.97 FHLMC POOL M80946 5.000% 11	P	2008-05-23	2010-06-15
	781.69 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-09-15
	697.14 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-07-15
	24.55 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-06-15
	683.16 FHLMC SERIES 3221 5.000% 09/1	P	2006-11-15	2010-05-15
	750.07 FNMA SER 2005-1 VK 5.000% 02/	P	2006-06-14	2010-06-25
	717.72 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-12-25
	1000 GENERAL ELECTRIC COMPANY	P	2002-06-13	2010-07-29
	500 ILLINOIS TOOL WORKS INC	P	2002-07-30	2010-06-22
	1000 MICROSOFT CORPORATION	P	2002-07-10	2010-06-09
	5611.86 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-09-25
	756.552 T ROWE PRICE MID CAP GROWTH	P	2003-06-20	2010-11-29
	50000 FED HOME LOAN MTG CORP NOTES .	P	2010-05-04	2010-10-29
	600 GENERAL DYNAMICS CORPORATION	P	2009-08-06	2010-05-13
	1782.55 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-09-20
	125 APPLE COMPUTER INC	P	2008-03-24	2010-05-20
	1000 CATERPILLAR INC	P	2008-01-28	2010-11-29
	50000 FED HOME LOAN BANK NOTES 2.200	P	2009-12-08	2010-12-29
	1223.49 FHLMC POOL M80946 5.000% 11	P	2008-05-23	2010-10-15
	753.61 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-01-15
	24.98 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-03-15
	2828.02 FHLMC SERIES 2756 5.000% 07	P	2004-05-10	2010-06-15
	694.61 FHLMC SERIES 3221 5.000% 09/1	P	2006-11-15	2010-09-15
	734.64 FNMA SER 2005-1 VK 5.000% 02/	P	2006-06-14	2010-01-25
	683.66 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-03-25
	1000 GENERAL ELECTRIC COMPANY	P	2002-06-13	2010-07-29
	800 JACOBS ENGINEERING GROUP INC	P	2008-02-12	2010-04-05
	645 MICROSOFT CORPORATION	P	2002-07-30	2010-06-09
	667.96 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-06-25
	649.415 T ROWE PRICE MID CAP GROWTH	P	2003-07-10	2010-11-29
	100000 FED NATL MTG ASSN NOTES 2.000	P	2010-05-05	2010-09-30
	300 GENZYME CORPORATION-GENERAL DIVI	P	2009-06-24	2010-03-31
	1503.54 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-06-20
	150 APPLE COMPUTER INC	P	2008-03-24	2010-04-05
	300 CATERPILLAR INC	P	2008-03-24	2010-11-29
	35000 FED HOME LOAN BANK NOTES 4.160	P	2009-03-03	2010-03-12
	175.38 FHLMC POOL M80946 5.000% 11/	P	2008-05-23	2010-07-15
	757.07 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-02-15
	2878.62 FHLMC SERIES 2756 5.000% 07	P	2004-05-10	2010-03-15
	24.11 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-09-15
	686 FHLMC SERIES 3221 5.000% 09/15/1	P	2006-11-15	2010-06-15
	737.7 FNMA SER 2005-1 VK 5.000% 02/2	P	2006-06-14	2010-02-25
	687.36 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-04-25
	2000 GENZYME CORPORATION-GENERAL DIV	P	2007-08-30	2010-03-31
	1000 JACOBS ENGINEERING GROUP INC	P	2008-02-12	2010-02-01
	2376.103 MRGN STNLY INST MID CAP GRW	P	2006-06-21	2010-07-29
	1027.49 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-01-25
	1000 U S BANCORP DEL	P	2006-12-11	2010-06-22
	50000 FED NATL MTG ASSN NOTES 3.000%	P	2009-05-19	2010-03-15
	100 GENZYME CORPORATION-GENERAL DIVI	P	2009-09-18	2010-03-31
	1025.67 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-01-20
	125 APPLE COMPUTER INC	P	2008-03-24	2010-08-31
	50000 CONOCOPHILLIPS 8.750% 05/25/10	P	2008-04-11	2010-05-25
	100000 FED HOME LOAN BANK NOTES 5.50	P	2008-03-27	2010-02-26
	2563.54 FHLMC POOL M80946 5.000% 11	P	2008-05-23	2010-01-15
	774.55 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-07-15
	45.16 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-12-15
	2778.23 FHLMC SERIES 2756 5.000% 07	P	2004-05-10	2010-09-15
	671.89 FHLMC SERIES 3221 5.000% 09/1	P	2006-11-15	2010-01-15
	753.2 FNMA SER 2005-1 VK 5.000% 02/2	P	2006-06-14	2010-07-25
	710 FNMA SERIES 2006-78 AV 6.500% 05	P	2007-05-10	2010-10-25
	5591.31 GNMA SER 2008-56 6.000% 05/2	P	2008-08-21	2010-12-20
	200 JACOBS ENGINEERING GROUP INC	P	2008-03-24	2010-04-05
	1727.116 MRGN STNLY INST MID CAP GRW	P	2006-06-21	2010-11-29
	300 SCHLUMBERGER LIMITED	P	2003-10-17	2010-12-17
	2705.14 VANGUARD GNMA FUND 36	P	2005-11-29	2010-08-31
	5146.38 FHLMC SER 2573 4.500% 01/15/	P	2009-03-23	2010-03-15
	741.94 GNMA POOL 2009-61 5.500% 10	P	2010-06-08	2010-08-20
	1122.25 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-02-20
	150 APPLE COMPUTER INC	P	2008-04-11	2010-11-29
	500 COSTCO WHOLESALE CORPORATION	P	2002-12-11	2010-04-09
	50000 FED HOME LOAN BANK NOTES 6.000	P	2008-04-15	2010-08-09
	949.47 FHLMC POOL M80946 5.000% 11/	P	2008-05-23	2010-02-15
	711.79 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-12-15
	5202.7 FHLMC SERIES 2756 5.000% 07/	P	2004-05-10	2010-12-15
	24.4 FHLMC SERIES 2756 5.000% 07/15	P	2004-05-10	2010-07-15
	674.69 FHLMC SERIES 3221 5.000% 09/1	P	2006-11-15	2010-02-15
	27.36 FNMA SERIES 2005-6 4.620% 04/2	P	2008-07-23	2010-03-25
	691.08 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-05-25
	5569.12 GNMA SER 2008-56 6.000% 05/2	P	2008-08-21	2010-10-20
	1000 JACOBS ENGINEERING GROUP INC	P	2008-09-18	2010-04-05
	940.911 MRGN STNLY INST MID CAP GRWT	P	2006-06-21	2010-02-01
	490 SMITH INTERNATIONAL INC	P	2007-09-21	2010-02-17
	800 VERIZON COMMUNICATIONS	P	2008-01-02	2010-06-22
	5667.74 FHLMC SER 2573 4.500% 01/15/	P	2009-03-23	2010-01-15
	755.64 GNMA POOL 2009-61 5.500% 10	P	2010-06-08	2010-12-20
	1597.3 GNMA SERIES 2009-93 3.500% 0	P	2009-12-09	2010-07-20
	2000 BANK AMERICA CORPORATION	P	2009-07-30	2010-12-17
	200 DANAHER CORPORATION	P	2003-07-10	2010-11-29
	150000 FED HOME LOAN MTG CORP NOTES	P	2009-01-29	2010-07-19
	2954.34 FHLMC POOL M80946 5.000% 11	P	2008-05-23	2010-09-15
	685.65 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-03-15
	24.84 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-04-15
	25.49 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-01-15
	691.73 FHLMC SERIES 3221 5.000% 09/1	P	2006-11-15	2010-08-15
	1059.22 FNMA SERIES 2005-6 4.620% 04	P	2008-07-23	2010-03-25
	702.37 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-08-25
	4868.38 GNMA SER 2008-56 6.000% 05/2	P	2008-08-21	2010-11-20
	1000 JOHNSON & JOHNSON	P	2002-06-13	2010-06-22
	150 PEPSICO INC	P	2004-05-12	2010-05-11
	1255 SMITH INTERNATIONAL INC	P	2008-12-30	2010-02-17
	LITIGATIONS PROCEEDS	P	2000-01-01	2010-07-01
	4415.17 FHLMC SER 2573 4.500% 01/15/	P	2009-03-23	2010-02-15
	748.76 GNMA POOL 2009-61 5.500% 10	P	2010-06-08	2010-10-20
	400 STATE STREET CORPORATION	P	2009-06-24	2010-05-13
	53 BANK OF NEW YORK MELLON CORP	P	2007-03-22	2010-10-19
	800 DANAHER CORPORATION	P	2003-07-10	2010-04-05
	100000 FED NATL MTG ASSN NOTES 4.000	P	2009-04-30	2010-08-20
	1292.05 FHLMC SER 2573 4.500% 01/15/	P	2009-03-23	2010-04-15
	688.5 FHLMC SER 3174 PX 5.000% 06/15	P	2006-09-22	2010-04-15
	2861.66 FHLMC SERIES 2756 5.000% 07	P	2004-05-10	2010-04-15
	2936.78 FHLMC SERIES 2756 5.000% 07	P	2004-05-10	2010-01-15
	688.86 FHLMC SERIES 3221 5.000% 09/1	P	2006-11-15	2010-07-15
	1931.27 FNMA SERIES 2005-6 4.620% 04	P	2008-07-23	2010-04-25
	706.18 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-09-25
	5918.71 GNMA SER 2008-56 6.000% 05/2	P	2008-08-21	2010-09-20
	500 JOHNSON & JOHNSON	P	2002-06-13	2010-06-22
	1839.18 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-02-25
	1255 SMITH INTERNATIONAL INC	P	2009-01-05	2010-02-17
	3.67 FHLMC SER 3640 1.500% 03/15/15	P	2010-08-25	2010-12-15
	752.19 GNMA POOL 2009-61 5.500% 10	P	2010-06-08	2010-11-20
	900 STATE STREET CORPORATION	P	2009-12-30	2010-05-13
	1500 BANK OF NEW YORK MELLON CORP	P	2007-03-22	2010-08-31
	1000 DANAHER CORPORATION	P	2004-04-05	2010-11-29
	100000 FED NATL MTG ASSN NOTES 5.400	P	2007-10-03	2010-03-09
	792.49 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-12-15
	705.89 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-10-15
	24.69 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-05-15
	25.34 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-02-15
	769.02 FNMA SER 2005-1 VK 5.000% 02/	P	2006-06-14	2010-12-25
	74771.55 FNMA SERIES 2005-6 4.620% 0	P	2008-07-23	2010-04-25
	694.83 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-06-25
	10746.15 GNMA SER 2008-56 6.000% 05/	P	2008-08-21	2010-08-20
	1000 MEDTRONIC INC	P	2002-06-13	2010-10-19
	2840.68 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-11-25
	1000 SMITH INTERNATIONAL INC	P	2009-01-26	2010-02-17
	2830.01 FHLMC SER 3640 1.500% 03/15/	P	2010-08-25	2010-12-15
	745.35 GNMA POOL 2009-61 5.500% 10	P	2010-06-08	2010-09-20
	500 AFLAC INC	P	2004-07-07	2010-11-29
	805 BANK OF NEW YORK MELLON CORP	P	2007-03-22	2010-06-22
	600 DEERE & COMPANY	P	2008-06-18	2010-11-29
	100000 FED NATL MTG ASSN NOTES 5.550	P	2008-12-30	2010-02-16
	760.52 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-03-15
	708.82 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-11-15
	2844.81 FHLMC SERIES 2756 5.000% 07	P	2004-05-10	2010-05-15
	2919.38 FHLMC SERIES 2756 5.000% 07	P	2004-05-10	2010-02-15
	740.77 FNMA SER 2005-1 VK 5.000% 02/	P	2006-06-14	2010-03-25
	44.8 FNMA SERIES 2005-6 4.620% 04/25	P	2008-07-23	2010-01-25
	676.31 FNMA SERIES 2006-78 AV 6.500%	P	2007-05-10	2010-01-25
	1393.66 GNMA SER 2008-56 6.000% 05/2	P	2008-08-21	2010-07-20
	1400 MEDTRONIC INC	P	2002-06-13	2010-10-19
	3246.02 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-12-25
	2500 SOUTHWESTERN ENERGY COMPANY	P	2009-09-02	2010-09-13
	3.14 FHLMC SER 3640 1.500% 03/15/15	P	2010-08-25	2010-10-15
	738.56 GNMA POOL 2009-61 5.500% 10	P	2010-06-08	2010-07-20
	250 AFLAC INC	P	2004-09-07	2010-11-29
	1642 BANK OF NEW YORK MELLON CORP	P	2007-08-30	2010-10-19
	500 DEERE & COMPANY	P	2008-06-18	2010-06-22
	5038.35 FHLMC POOL M80946 5.000% 11	P	2008-05-23	2010-03-15
	764.01 FHLMC SER 2825 5.500% 06/15/1	P	2005-08-02	2010-04-15
	691.38 FHLMC SER 3174 PX 5.000% 06/1	P	2006-09-22	2010-05-15
	24.26 FHLMC SERIES 2756 5.000% 07/1	P	2004-05-10	2010-08-15
	2811.34 FHLMC SERIES 2756 5.000% 07	P	2004-05-10	2010-07-15
	743.86 FNMA SER 2005-1 VK 5.000% 02/	P	2006-06-14	2010-04-25
	1734.38 FNMA SERIES 2005-6 4.620% 04	P	2008-07-23	2010-01-25
	72.012 FRONTIER COMMUNICATIONS CORPO	P	2008-01-02	2010-07-12
	2053.87 GNMA SERIES 2009-93 3.500%	P	2009-12-09	2010-12-20
	1000 MEDTRONIC INC	P	2002-07-30	2010-10-19
	155.69 RBSGC MTG PASS THRU CERTS	P	2008-02-15	2010-03-25
	250 STAPLES INC	P	2003-07-10	2010-09-13

(e) Gross sales price		(g) Cost or other basis plus expense of sale	(h) Gain or (loss) (e) plus (f) minus (g)
a	30,671	20,018	10,653
b	2,417	2,432	-15
c	1,218	1,262	-44
d	15,336	30,603	-15,267
e	26,488	39,480	-12,992
	29,414	20,618	8,796
	4,073	4,129	-56
	785	803	-18
	700	693	7
	24	24
	703	695	8
	756	734	22
	35	35
	2,071	3,093	-1,022
	28,000	16,437	11,563
	100,000	102,817	-2,817
	613	593	20
	23,340	12,913	10,427
	75,000	75,000
	4	4
	1,314	1,361	-47
	15,336	25,665	-10,329
	34,567	34,235	332
	95,582	83,000	12,582
	4,532	4,595	-63
	789	806	-17
	703	696	7
	2,762	2,764	-2
	678	670	8
	763	740	23
	1,341	1,355	-14
	44,244	22,017	22,227
	38,160	12,376	25,784
	50,000	49,875	125
	1,448	1,401	47
	73,085	63,525	9,560
	100,000	100,000
	2,744	2,761	-17
	1,690	1,751	-61
	30,671	42,840	-12,169
	13,485	14,590	-1,105
	19,577	17,000	2,577
	2,318	2,349	-31
	768	785	-17
	694	688	6
	34	34
	680	672	8
	766	743	23
	680	698	-18
	46,949	22,017	24,932
	8,354	3,094	5,260
	40,335	43,872	-3,537
	2,546	2,464	82
	21,143	34,031	-12,888
	150,000	150,000
	2,805	2,823	-18
	1,874	1,941	-67
	9,738	5,693	4,045
	36,581	35,381	1,200
	23,640	12,495	11,145
	1,098	1,113	-15
	771	788	-17
	680	673	7
	3,912	3,915	-3
	698	689	9
	747	725	22
	699	717	-18
	16,090	30,095	-14,005
	16,707	6,092	10,615
	5,042	5,274	-232
	1,203	1,164	39
	29,601	46,966	-17,365
	100,000	100,000
	1,725	1,894	-169
	1,964	2,034	-70
	4,880	3,000	1,880
	67,424	75,809	-8,385
	25,525	12,495	13,030
	682	692	-10
	778	795	-17
	683	676	7
	2,795	2,797	-2
	700	692	8
	759	737	22
	714	733	-19
	1,609	3,010	-1,401
	100,000	98,220	1,780
	20,168	21,936	-1,768
	2,857	2,764	93
	19,157	12,364	6,793
	100,000	100,180	-180
	1	1
	1,409	1,459	-50
	382	238	144
	100,000	101,027	-1,027
	200,000	207,228	-7,228
	1,970	1,997	-27
	782	799	-17
	697	690	7
	25	25
	683	675	8
	750	728	22
	718	737	-19
	16,090	30,095	-14,005
	22,775	16,295	6,480
	25,210	26,240	-1,030
	5,612	5,429	183
	43,502	28,000	15,502
	50,000	50,000
	44,244	33,978	10,266
	1,783	1,846	-63
	29,862	17,074	12,788
	82,882	67,224	15,658
	50,000	50,000
	1,223	1,240	-17
	754	770	-16
	25	25
	2,828	2,830	-2
	695	687	8
	735	713	22
	684	702	-18
	16,090	30,095	-14,005
	36,849	60,326	-23,477
	16,260	15,528	732
	668	646	22
	37,341	24,347	12,994
	100,000	100,000
	15,583	16,224	-641
	1,504	1,557	-53
	35,551	20,488	15,063
	24,865	22,793	2,072
	35,000	35,700	-700
	175	178	-3
	757	774	-17
	2,879	2,881	-2
	24	24
	686	678	8
	738	716	22
	687	706	-19
	103,884	123,295	-19,411
	38,021	75,408	-37,387
	70,000	57,621	12,379
	1,027	994	33
	23,760	34,120	-10,360
	50,000	49,986	14
	5,194	5,754	-560
	1,026	1,062	-36
	30,429	17,074	13,355
	50,000	55,846	-5,846
	100,000	104,512	-4,512
	2,564	2,599	-35
	775	792	-17
	45	45
	2,778	2,780	-2
	672	664	8
	753	731	22
	710	729	-19
	5,591	5,791	-200
	9,212	15,002	-5,790
	60,000	41,883	18,117
	24,267	7,418	16,849
	30,000	27,674	2,326
	5,146	5,188	-42
	742	811	-69
	1,122	1,162	-40
	46,928	22,253	24,675
	30,508	14,460	16,048
	50,000	53,039	-3,039
	949	963	-14
	712	705	7
	5,203	5,207	-4
	24	24
	675	667	8
	27	28	-1
	691	709	-18
	5,569	5,768	-199
	46,061	57,290	-11,229
	25,000	22,817	2,183
	16,162	36,407	-20,245
	23,392	34,274	-10,882
	5,668	5,714	-46
	756	826	-70
	1,597	1,654	-57
	24,941	27,992	-3,051
	8,614	3,362	5,252
	150,000	159,321	-9,321
	2,954	2,995	-41
	686	679	7
	25	25
	25	26	-1
	692	684	8
	1,059	1,070	-11
	702	721	-19
	4,868	5,042	-174
	59,738	57,415	2,323
	10,006	7,968	2,038
	41,394	27,906	13,488
	1,785		1,785
	4,415	4,451	-36
	749	818	-69
	16,915	18,384	-1,469
	1,404	2,323	-919
	64,511	26,892	37,619
	100,000	99,775	225
	1,292	1,303	-11
	689	682	7
	2,862	2,864	-2
	2,937	2,939	-2
	689	681	8
	1,931	1,951	-20
	706	725	-19
	5,919	6,130	-211
	29,869	28,708	1,161
	1,839	1,779	60
	41,394	34,296	7,098
	4	4
	752	822	-70
	38,058	39,654	-1,596
	36,227	65,751	-29,524
	43,069	23,659	19,410
	100,000	99,850	150
	792	810	-18
	706	699	7
	25	25
	25	25
	769	746	23
	74,772	75,519	-747
	695	713	-18
	10,746	11,129	-383
	33,385	44,400	-11,015
	2,841	2,748	93
	32,983	25,733	7,250
	2,830	2,848	-18
	745	815	-70
	25,886	20,710	5,176
	21,276	35,286	-14,010
	45,597	47,555	-1,958
	100,000	103,870	-3,870
	761	777	-16
	709	702	7
	2,845	2,847	-2
	2,919	2,922	-3
	741	719	22
	45	45
	676	694	-18
	1,394	1,443	-49
	46,739	62,160	-15,421
	3,246	3,140	106
	82,272	90,127	-7,855
	3	3
	739	807	-68
	12,943	10,118	2,825
	43,493	65,877	-22,384
	30,079	39,629	-9,550
	5,038	5,108	-70
	764	781	-17
	691	685	6
	24	24
	2,811	2,814	-3
	744	722	22
	1,734	1,752	-18
	518	797	-279
	2,054	2,127	-73
	33,385	39,450	-6,065
	156	151	5
	4,872	3,228	1,644

Complete only for assets showing gain in column (h) and owned by the foundation on 12/31/69			(l) Gains (Col. (h) gain minus col. (k), but not less than -0-) or Losses (from col.(h))
(i) F.M.V. as of 12/31/69	(j) Adjusted basis as of 12/31/69	(k) Excess of col. (i) over col. (j), if any
a			10,653
b			-15
c			-44
d			-15,267
e			-12,992
			8,796
			-56
			-18
			7

			8
			22

			-1,022
			11,563
			-2,817
			20
			10,427


			-47
			-10,329
			332
			12,582
			-63
			-17
			7
			-2
			8
			23
			-14
			22,227
			25,784
			125
			47
			9,560

			-17
			-61
			-12,169
			-1,105
			2,577
			-31
			-17
			6

			8
			23
			-18
			24,932
			5,260
			-3,537
			82
			-12,888

			-18
			-67
			4,045
			1,200
			11,145
			-15
			-17
			7
			-3
			9
			22
			-18
			-14,005
			10,615
			-232
			39
			-17,365

			-169
			-70
			1,880
			-8,385
			13,030
			-10
			-17
			7
			-2
			8
			22
			-19
			-1,401
			1,780
			-1,768
			93
			6,793
			-180

			-50
			144
			-1,027
			-7,228
			-27
			-17
			7

			8
			22
			-19
			-14,005
			6,480
			-1,030
			183
			15,502

			10,266
			-63
			12,788
			15,658

			-17
			-16

			-2
			8
			22
			-18
			-14,005
			-23,477
			732
			22
			12,994

			-641
			-53
			15,063
			2,072
			-700
			-3
			-17
			-2

			8
			22
			-19
			-19,411
			-37,387
			12,379
			33
			-10,360
			14
			-560
			-36
			13,355
			-5,846
			-4,512
			-35
			-17

			-2
			8
			22
			-19
			-200
			-5,790
			18,117
			16,849
			2,326
			-42
			-69
			-40
			24,675
			16,048
			-3,039
			-14
			7
			-4

			8
			-1
			-18
			-199
			-11,229
			2,183
			-20,245
			-10,882
			-46
			-70
			-57
			-3,051
			5,252
			-9,321
			-41
			7

			-1
			8
			-11
			-19
			-174
			2,323
			2,038
			13,488
			1,785
			-36
			-69
			-1,469
			-919
			37,619
			225
			-11
			7
			-2
			-2
			8
			-20
			-19
			-211
			1,161
			60
			7,098

			-70
			-1,596
			-29,524
			19,410
			150
			-18
			7


			23
			-747
			-18
			-383
			-11,015
			93
			7,250
			-18
			-70
			5,176
			-14,010
			-1,958
			-3,870
			-16
			7
			-2
			-3
			22

			-18
			-49
			-15,421
			106
			-7,855

			-68
			2,825
			-22,384
			-9,550
			-70
			-17
			6

			-3
			22
			-18
			-279
			-73
			-6,065
			5
			1,644

2	Capital gain net income or (net capital loss)	If gain, also enter in Part I, line 7 If (loss), enter -0- in Part I, line 7	2	66,474
3	Net short-term capital gain or (loss) as defined in sections 1222(5) and (6):
	If gain, also enter in Part I, line 8, column (c) (see pages 13 and 17 of the instructions). If (loss), enter -0- in Part I, line 8 . . . . . . . . . . . . .		3	15,122

Part V

Qualification Under Section 4940(e) for Reduced Tax on Net Investment Income

(For optional use by domestic private foundations subject to the section 4940(a) tax on net investment income.)

If section 4940(d)(2) applies, leave this part blank.

Was the foundation liable for the section 4942 tax on the distributable amount of any year in the base period? Yes No

If “Yes,” the foundation does not qualify under section 4940(e). Do not complete this part.

1 Enter the appropriate amount in each column for each year; see page 18 of the instructions before making any entries.
(a) Base period years Calendar year (or tax year beginning in)	(b) Adjusted qualifying distributions	(c) Net value of noncharitable-use assets	(d) Distribution ratio (col. (b) divided by col. (c))
2009	1,004,260	18,744,903	0.053575
2008	851,939	21,409,879	0.039792
2007	1,033,969	23,493,297	0.044011
2006	798,279	21,737,645	0.036723
2005	775,628	21,072,357	0.036808

2	Total of line 1, column (d) ......................	2	0.210909
3	Average distribution ratio for the 5-year base period—divide the total on line 2 by 5, or by the number of years the foundation has been in existence if less than 5 years. . .	3	0.042182
4	Enter the net value of noncharitable-use assets for 2010 from Part X, line 5.....	4	20,558,064
5	Multiply line 4 by line 3.......................	5	867,180
6	Enter 1% of net investment income (1% of Part I, line 27b)...........	6	6,134
7	Add lines 5 and 6.........................	7	873,314
8	Enter qualifying distributions from Part XII, line 4..............	8	923,942
If line 8 is equal to or greater than line 7, check the box in Part VI, line 1b, and complete that part using a 1% tax rate. See the Part VI instructions on page 18.

Form 990-PF (2010)

Page 4

Part VI

Excise Tax Based on Investment Income (Section 4940(a), 4940(b), 4940(e), or 4948—see page 18 of the instructions)

1a	Exempt operating foundations described in section 4940(d)(2), check hereand enter “N/A” on line 1.
	Date of ruling or determination letter: (attach copy of letter if necessary–see instructions)
b	Domestic foundations that meet the section 4940(e) requirements in Part V, check	1	6,134
	hereand enter 1% of Part I, line 27b...................
c	All other domestic foundations enter 2% of line 27b. Exempt foreign organizations enter 4% of Part I, line 12, col. (b)
2	Tax under section 511 (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-)	2
3	Add lines 1 and 2............................	3	6,134
4	Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-).	4
5	Tax based on investment income. Subtract line 4 from line 3. If zero or less, enter -0- .....	5	6,134
6	Credits/Payments:

a	2010 estimated tax payments and 2009 overpayment credited to 2010	6a	9,910
b	Exempt foreign organizations—tax withheld at source.......	6b
c	Tax paid with application for extension of time to file (Form 8868)	6c
d	Backup withholding erroneously withheld ...........	6d

7	Total credits and payments. Add lines 6a through 6d..............		7	9,910
8	Enter any penalty for underpayment of estimated tax. Check hereif Form 2220 is attached.		8
9	Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed.......		9
10	Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid...		10	3,776
11	Enter the amount of line 10 to be: Credited to 2011 estimated tax3,776	Refunded	11

Part VII-A

Statements Regarding Activities

During the tax year, did the foundation attempt to influence any national, state, or local legislation or did

Yes

it participate or intervene in any political campaign? ....................

Did it spend more than $100 during the year (either directly or indirectly) for political purposes (see page 19 of

the instructions for definition)?.............................

If the answer is “Yes” to 1a or 1b, attach a detailed description of the activities and copies of any materials

published or distributed by the foundation in connection with the activities.

Did the foundation file Form 1120-POL for this year?.....................

Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year:

(1) On the foundation. bullet

$ (2) On foundation managers. bullet

Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed

on foundation managers. bullet

Has the foundation engaged in any activities that have not previously been reported to the IRS?.......

If “Yes,” attach a detailed description of the activities.

Has the foundation made any changes, not previously reported to the IRS, in its governing instrument, articles

of incorporation, or bylaws, or other similar instruments? If “Yes,” attach a conformed copy of the changes....

Did the foundation have unrelated business gross income of $1,000 or more during the year?........

If “Yes,” has it filed a tax return on Form 990-T for this year?...................

Was there a liquidation, termination, dissolution, or substantial contraction during the year?.........

If “Yes,” attach the statement required by General Instruction T.

Are the requirements of section 508(e) (relating to sections 4941 through 4945) satisfied either:

By language in the governing instrument, or

By state legislation that effectively amends the governing instrument so that no mandatory directions

that conflict with the state law remain in the governing instrument?................

Yes

Did the foundation have at least $5,000 in assets at any time during the year? If “Yes,” complete Part II, col. (c), and Part XV.

Yes

Enter the states to which the foundation reports or with which it is registered (see page 19 of the

instructions) bullet

If the answer is “Yes” to line 7, has the foundation furnished a copy of Form 990-PF to the Attorney

General (or designate) of each state as required by General Instruction G? If “No,” attach explanation .

Yes

Is the foundation claiming status as a private operating foundation within the meaning of section 4942(j)(3)

or 4942(j)(5) for calendar year 2010 or the taxable year beginning in 2010 (see instructions for Part XIV on

page 27)? If “Yes,” complete Part XIV...........................

Did any persons become substantial contributors during the tax year? If “Yes,” attach a schedule listing their names and addresses.

At any time during the year, did the foundation, directly or indirectly, own a controlled entity within the

meaning of section 512(b)(13)? If "Yes," attach schedule. (see page 20 of the instructions) .......

Did the foundation acquire a direct or indirect interest in any applicable insurance contract before August 17, 2008?

Did the foundation comply with the public inspection requirements for its annual returns and exemption application?

Yes

Website address bullet

N/A

The books are in care of bullet

FIRST INTERSTATE BANK FSG Telephone no. bullet

(307) 672-1493

Located at bullet

16 S MAIN STSHERIDANWY ZIP+4 bullet

82801

Section 4947(a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041 —Check here......... bullet

and enter the amount of tax-exempt interest received or accrued during the year ...... bullet

At any time during calendar year 2010, did the foundation have an interest in or a signature or other authority over

a bank, securities, or other financial account in a foreign country? .................

See page 20 of the instructions for exceptions and filing requirements for Form TD F 90-22.1. If "Yes", enter the name of the foreign country bullet

Form 990-PF (2010)

Page 5

Part VII-B

Statements Regarding Activities for Which Form 4720 May Be Required

File Form 4720 if any item is checked in the “Yes” column, unless an exception applies.

Yes

During the year did the foundation (either directly or indirectly):

(1) Engage in the sale or exchange, or leasing of property with a disqualified person? YesNo

(2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from)

a disqualified person?.........................YesNo

(3) Furnish goods, services, or facilities to (or accept them from) a disqualified person? YesNo

(4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person? YesNo

(5) Transfer any income or assets to a disqualified person (or make any of either available

for the benefit or use of a disqualified person)?.................YesNo

(6) Agree to pay money or property to a government official? (Exception. Check “No”

if the foundation agreed to make a grant to or to employ the official for a period

after termination of government service, if terminating within 90 days.).........YesNo

If any answer is “Yes” to 1a(1)–(6), did any of the acts fail to qualify under the exceptions described in Regulations

section 53.4941(d)-3 or in a current notice regarding disaster assistance (see page 20 of the instructions)?...

Organizations relying on a current notice regarding disaster assistance check here......... bullet

Did the foundation engage in a prior year in any of the acts described in 1a, other than excepted acts,

that were not corrected before the first day of the tax year beginning in 2010?.............

Taxes on failure to distribute income (section 4942) (does not apply for years the foundation was a private

operating foundation defined in section 4942(j)(3) or 4942(j)(5)):

At the end of tax year 2010, did the foundation have any undistributed income (lines 6d

and 6e, Part XIII) for tax year(s) beginning before 2010?...............YesNo

If “Yes,” list the years bullet

20, 20, 20, 20

Are there any years listed in 2a for which the foundation is not applying the provisions of section 4942(a)(2)

(relating to incorrect valuation of assets) to the year’s undistributed income? (If applying section 4942(a)(2)

to all years listed, answer “No” and attach statement—see page 20 of the instructions.) .........

If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here.

20, 20, 20, 20

Did the foundation hold more than a 2% direct or indirect interest in any business

enterprise at any time during the year?.....................YesNo

If “Yes,” did it have excess business holdings in 2010 as a result of (1) any purchase by the foundation

or disqualified persons after May 26, 1969; (2) the lapse of the 5-year period (or longer period approved

by the Commissioner under section 4943(c)(7)) to dispose of holdings acquired by gift or bequest; or (3)

the lapse of the 10-, 15-, or 20-year first phase holding period? (Use Schedule C, Form 4720, to determine

if the foundation had excess business holdings in 2010.)....................

Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes?

Did the foundation make any investment in a prior year (but after December 31, 1969) that could jeopardize its

charitable purpose that had not been removed from jeopardy before the first day of the tax year beginning in 2010?

During the year did the foundation pay or incur any amount to:

(1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))? YesNo

(2) Influence the outcome of any specific public election (see section 4955); or to carry

on, directly or indirectly, any voter registration drive?...............YesNo

(3) Provide a grant to an individual for travel, study, or other similar purposes? YesNo

(4) Provide a grant to an organization other than a charitable, etc., organization described

in section 509(a)(1), (2), or (3), or section 4940(d)(2)? (see page 22 of the instructions)...YesNo

(5) Provide for any purpose other than religious, charitable, scientific, literary, or

educational purposes, or for the prevention of cruelty to children or animals?........YesNo

If any answer is “Yes” to 5a(1)–(5), did any of the transactions fail to qualify under the exceptions described in

Regulations section 53.4945 or in a current notice regarding disaster assistance (see page 22 of the instructions)?

Organizations relying on a current notice regarding disaster assistance check here......... bullet

If the answer is “Yes” to question 5a(4), does the foundation claim exemption from the

tax because it maintained expenditure responsibility for the grant?............YesNo

If “Yes,” attach the statement required by Regulations section 53.4945–5(d).

Did the foundation, during the year, receive any funds, directly or indirectly, to pay

premiums on a personal benefit contract?....................YesNo

Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract?....

If “Yes” to 6b, file Form 8870.

At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction? YesNo

If yes, did the foundation receive any proceeds or have any net income attributable to the transaction? ....

Form 990-PF (2010)

Page 6

Part VIII

Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees,
and Contractors

1 List all officers, directors, trustees, foundation managers and their compensation (see page 22 of the instructions).
(a) Name and address	(b) Title, and average hours per week devoted to position	(c) Compensation (If not paid, enter -0-)	(d) Contributions to employee benefit plans and deferred compensation	(e) Expense account, other allowances
JOHN M PRADERE	DIRECTOR 2.00	0	0	0
PO BOX 6085 SHERIDAN,WY82801	DIRECTOR 2.00	0	0	0
BOB EBERHART	PRESIDENT 2.00	0	0	0
PO BOX 6085 SHERIDAN,WY82801	PRESIDENT 2.00	0	0	0
KY DIXON	VICE PRES 2.00	0	0	0
PO BOX 6085 SHERIDAN,WY82801	VICE PRES 2.00	0	0	0
BOB FERRIL	SECRETARY 2.00	0	0	0
PO BOX 6085 SHERIDAN,WY82801	SECRETARY 2.00	0	0	0
GEORGE GLIGOREA	TREASURER 2.00	0	0	0
PO BOX 6085 SHERIDAN,WY82801	TREASURER 2.00	0	0	0
JACK PELISSIER	DIRECTOR 2.00	0	0	0
PO BOX 6085 SHERIDAN,WY82801	DIRECTOR 2.00	0	0	0

2 Compensation of five highest-paid employees (other than those included on line 1—see page 23 of the instructions). If none, enter “NONE.”
(a) Name and address of each employee paid more than $50,000	(b) Title, and average hours per week devoted to position	(c) Compensation	(d) Contributions to employee benefit plans and deferred compensation	(e) Expense account, other allowances
NONE









Total number of other employees paid over $50,000...................

3 Five highest-paid independent contractors for professional services (see page 23 of the instructions). If none, enter "NONE".
(a) Name and address of each person paid more than $50,000	(b) Type of service	(c) Compensation
FIRST INTERSTATE BANK	INVESTMENT MGMT	81,800
PO BOX 2007 SHERIDAN,WY82801	INVESTMENT MGMT	81,800

Total number of others receiving over $50,000 for professional services............. bullet

Part IX-A

Summary of Direct Charitable Activities

List the foundation’s four largest direct charitable activities during the tax year. Include relevant statistical information such as the number of organizations and other beneficiaries served, conferences convened, research papers produced, etc.		Expenses
1


2


3


4

Form 990-PF (2010)

Page 7

Part IX-B

Summary of Program-Related Investments (see page 23 of the instructions)

Describe the two largest program-related investments made by the foundation during the tax year on lines 1 and 2.		Amount
1	N/A
2


All other program-related investments. See page 24 of the instructions.
3

Total. Add lines 1 through 3........................... bullet

Part X

Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations,
see page 24 of the instructions.)

Fair market value of assets not used (or held for use) directly in carrying out charitable, etc.,

purposes:

Average monthly fair market value of securities...................

20,340,374

Average of monthly cash balances.......................

423,908

Fair market value of all other assets (see page 24 of the instructions)............

106,849

Total (add lines 1a, b, and c).........................

20,871,131

Reduction claimed for blockage or other factors reported on lines 1a and

1c (attach detailed explanation) ..............

Acquisition indebtedness applicable to line 1 assets..................

Subtract line 2 from line 1d..........................

20,871,131

Cash deemed held for charitable activities. Enter 1 1⁄2% of line 3 (for greater amount, see page 25

of the instructions) ............................

313,067

Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4

20,558,064

Minimum investment return. Enter 5% of line 5...................

1,027,903

Part XI

Distributable Amount (see page 25 of the instructions) (Section 4942(j)(3) and (j)(5) private operating foundations and certain foreign organizations check here bullet

and do not complete this part.)

Minimum investment return from Part X, line 6....................

1,027,903

Tax on investment income for 2010 from Part VI, line 5......

6,134

Income tax for 2010. (This does not include the tax from Part VI.)...

Add lines 2a and 2b............................

6,134

Distributable amount before adjustments. Subtract line 2c from line 1............

1,021,769

Recoveries of amounts treated as qualifying distributions................

Add lines 3 and 4.............................

1,021,769

Deduction from distributable amount (see page 25 of the instructions)...........

Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII,

line 1.................................

1,021,769

Part XII

Qualifying Distributions (see page 25 of the instructions)

Amounts paid (including administrative expenses) to accomplish charitable, etc., purposes:

Expenses, contributions, gifts, etc.—total from Part I, column (d), line 26 ..........

923,942

Program-related investments—total from Part IX-B..................

Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc.,

purposes................................

Amounts set aside for specific charitable projects that satisfy the:

Suitability test (prior IRS approval required)....................

Cash distribution test (attach the required schedule) .................

Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4

923,942

Foundations that qualify under section 4940(e) for the reduced rate of tax on net investment

income. Enter 1% of Part I, line 27b (see page 26 of the instructions)............

6,134

Adjusted qualifying distributions. Subtract line 5 from line 4...............

917,808

Note: The amount on line 6 will be used in Part V, column (b), in subsequent years when calculating whether the foundation qualifies for
the section 4940(e) reduction of tax in those years.

Form 990-PF (2010)

Page 8

Part XIII

Undistributed Income (see page 26 of the instructions)

	(c) 2009	(d) 2010
1 Distributable amount for 2010 from Part XI, line 7		1,021,769
2 Undistributed income, if any, as of the end of 2010:
a Enter amount for 2009 only.......	896,755
b Total for prior years:20, 20, 20
3 Excess distributions carryover, if any, to 2010:
a From 2005.......
b From 2006.......
c From 2007.......
d From 2008.......
e From 2009.......
fTotal of lines 3a through e.........
4Qualifying distributions for 2010 from Part
XII, line 4: $ 923,942
a Applied to 2009, but not more than line 2a	896,755
b Applied to undistributed income of prior years (Election required—see page 26 of the instructions)
c Treated as distributions out of corpus (Election required—see page 26 of the instructions)...
d Applied to 2010 distributable amount.....		27,187
e Remaining amount distributed out of corpus
5 Excess distributions carryover applied to 2010.
(If an amount appears in column (d), the same amount must be shown in column (a).)
6Enter the net total of each column as indicated below:
a Corpus. Add lines 3f, 4c, and 4e. Subtract line 5
b Prior years’ undistributed income. Subtract line 4b from line 2b ...........
c Enter the amount of prior years’ undistributed income for which a notice of deficiency has been issued, or on which the section 4942(a) tax has been previously assessed......
d Subtract line 6c from line 6b. Taxable amount—see page 27 of the instructions ...
e Undistributed income for 2009. Subtract line 4a from line 2a. Taxable amount—see page 27 of the instructions ...........
f Undistributed income for 2010. Subtract lines 4d and 5 from line 1. This amount must be distributed in 2011 ..........		994,582
7 Amounts treated as distributions out of corpus to satisfy requirements imposed by section 170(b)(1)(F) or 4942(g)(3) (see page 27 of the instructions) ...........
8Excess distributions carryover from 2005 not applied on line 5 or line 7 (see page 27 of the instructions) .............
9Excess distributions carryover to 2011. Subtract lines 7 and 8 from line 6a ......
10 Analysis of line 9:
a Excess from 2006....
b Excess from 2007....
c Excess from 2008....
d Excess from 2009....
e Excess from 2010....

Form 990-PF (2010)

Page 9

Part XIV

Private Operating Foundations (see page 27 of the instructions and Part VII-A, question 9)

1a If the foundation has received a ruling or determination letter that it is a private operating
foundation, and the ruling is effective for 2010, enter the date of the ruling....... bullet

b Check box to indicate whether the organization is a private operating foundation described in section4942(j)(3) or4942(j)(5)

2a Enter the lesser of the adjusted net income from Part I or the minimum investment return from Part X for each year listed ..........	Tax year	Prior 3 years			(e) Total
	(a) 2010	(b) 2009	(c) 2008	(d) 2007	(e) Total

b 85% of line 2a .........
c Qualifying distributions from Part XII, line 4 for each year listed .....
d Amounts included in line 2c not used directly for active conduct of exempt activities ....
e Qualifying distributions made directly for active conduct of exempt activities. Subtract line 2d from line 2c ....
3 Complete 3a, b, or c for the alternative test relied upon:
a “Assets” alternative test—enter:
(1) Value of all assets ......
(2) Value of assets qualifying under section 4942(j)(3)(B)(i)
b “Endowment” alternative test— enter 2⁄3 of minimum investment return shown in Part X, line 6 for each year listed...
c “Support” alternative test—enter:
(1) Total support other than gross investment income (interest, dividends, rents, payments on securities loans (section 512(a)(5)), or royalties) ....
(2) Support from general public and 5 or more exempt organizations as provided in section 4942(j)(3)(B)(iii)....
(3) Largest amount of support from an exempt organization
(4) Gross investment income

Part XV

Supplementary Information (Complete this part only if the organization had $5,000 or more in
assets at any time during the year—see page 27 of the instructions.)

1Information Regarding Foundation Managers:

aList any managers of the foundation who have contributed more than 2% of the total contributions received by the foundation
before the close of any tax year (but only if they have contributed more than $5,000). (See section 507(d)(2).)

bList any managers of the foundation who own 10% or more of the stock of a corporation (or an equally large portion of the
ownership of a partnership or other entity) of which the foundation has a 10% or greater interest.

2Information Regarding Contribution, Grant, Gift, Loan, Scholarship, etc., Programs:

Check here bullet

if the foundation only makes contributions to preselected charitable organizations and does not accept
unsolicited requests for funds. If the foundation makes gifts, grants, etc. (see page 28 of the instructions) to individuals or organizations
under other conditions, complete items 2a, b, c, and d.

aThe name, address, and telephone number of the person to whom applications should be addressed:

JOE AND ARLENE WATT FOUNDATION
PO BOX 6085
SHERIDAN,WY82801
(307) 672-1493

bThe form in which applications should be submitted and information and materials they should include:

THE APPLICATION SHOULD BE IN WRITTEN FORM AND INCLUDE: 1. NAME, ADDRESS AND TAX ID NUMBER OF THE CHARITY, 2. DOCUMENTARY PROOF OF THE TAX EXEMPT STATUS OF THE CHARITY UNDER SECTION 501(C)(3) OF THE IRC OF 1954, OR AS AMENDED. 3. COPY OF THE MOST RECENT ANNUAL REPORT OF THE CHARITY IN THE FORM REQUIRED OF IT BY APPLICABLE SECTION OF THE INTERNAL REVENUE CODE. 4. DESCRIPTION OF THE CHARITABLE PURPOSE, OR PURPOSES, TO WHICH THE FUNDS FOR WHICH APPLICATION IS BEING MADE SHALL BE PUT.

cAny submission deadlines:

NONE

dAny restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other
factors:

NONE

Form 990-PF (2010)

Page 10

Part XV

Supplementary Information (continued)

3 Grants and Contributions Paid During the Year or Approved for Future Payment
Recipient	If recipient is an individual, show any relationship to any foundation manager or substantial contributor	Foundation status of recipient	Purpose of grant or contribution	Amount
Name and address (home or business)		Foundation status of recipient	Purpose of grant or contribution	Amount
aPaid during the year
ADVOCACY RESOURCE CENTER SHERIDAN,WY82801	NONE	EXEMPT ORG.	UNRESTRICTED	30,000
ALTERNATIVE ELDER LIVING INC SHERIDAN,WY82801	NONE	EXEMPT ORG.	BUILDING CAMPAIGN	500,000
SHERIDAN COUNTY YMCA SHERIDAN,WY82801	NONE	EXEMPT ORG.	EARLY CHILDHOOD DEVELOPMENT PROGRAM	125,000
SHERIDAN HERITAGE CENTER 1030 N MAIN ST SHERIDAN,WY82801	NONE	EXEMPT ORG.	UNRESTRICTED	50,000
SHERIDAN SENIOR CENTER SHERIDAN,WY82801	NONE	EXEMPT ORG.	UNRESTRICTED	100,000
THE FREE CLINIC OF SHERIDAN COUNTY SHERIDAN,WY82801	NONE	EXEMPT ORG.	UNRESTRICTED	56,000
TONGUE RIVER VALLEY COMMUNITY CENTER RANCHESTER,WY82839	NONE	EXEMPT ORG.	UNRESTRICTED	25,000
WYO THEATER 42 N MAIN SHERIDAN,WY82801	NONE	EXEMPT ORG.	UNRESTRICTED	37,500
Total ................................. 3a				923,500

bApproved for future payment

Total .................................. 3b

Form 990-PF (2010)

Page 11

Part XVI-A

Analysis of Income-Producing Activities

Enter gross amounts unless otherwise indicated.	Unrelated business income		Excluded by section 512, 513, or 514
1Program service revenue:	(a) Business code	(b) Amount	(c) Exclusion code	(d) Amount
a
b
c
d
e
f
gFees and contracts from government agencies
2 Membership dues and assessments....
3Interest on savings and temporary cash investments
4 Dividends and interest from securities....			14	607,435
5 Net rental income or (loss) from real estate:
aDebt-financed property......
bNot debt-financed property.....
6Net rental income or (loss) from personal property
7 Other investment income.....			15	22,444
8Gain or (loss) from sales of assets other than inventory			18	66,474
9 Net income or (loss) from special events:
10 Gross profit or (loss) from sales of inventory..
11 Other revenue: a
b
c
d
e
12 Subtotal. Add columns (b), (d), and (e)..				696,353

13Total. Add line 12, columns (b), (d), and (e)...................

13696,353

(See worksheet in line 13 instructions on page 28 to verify calculations.)

Part XVI-B

Relationship of Activities to the Accomplishment of Exempt Purposes

Line No.	Explain below how each activity for which income is reported in column (e) of Part XVI-A contributed importantly to the accomplishment of the organization’s exempt purposes (other than by providing funds for such purposes). (See page 28 of the instructions.)

Form 990-PF (2010)

Page 12

Part XVII

Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations

Did the organization directly or indirectly engage in any of the following with any other organization described in section

Yes

501(c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations?

Transfers from the reporting foundation to a noncharitable exempt organization of:

(1) Cash....................................

1a(1)

(2) Other assets.................................

1a(2)

Other transactions:

(1) Sales of assets to a noncharitable exempt organization....................

1b(1)

(2) Purchases of assets from a noncharitable exempt organization..................

1b(2)

(3) Rental of facilities, equipment, or other assets.......................

1b(3)

(4) Reimbursement arrangements............................

1b(4)

(5) Loans or loan guarantees..............................

1b(5)

(6) Performance of services or membership or fundraising solicitations................

1b(6)

Sharing of facilities, equipment, mailing lists, other assets, or paid employees..............

If the answer to any of the above is “Yes,” complete the following schedule. Column (b) should always show the fair market value
of the goods, other assets, or services given by the reporting foundation. If the foundation received less than fair market value
in any transaction or sharing arrangement, show in column (d) the value of the goods, other assets, or services received.

(a) Line No.	(b) Amount involved	(c) Name of noncharitable exempt organization	(d) Description of transfers, transactions, and sharing arrangements

Is the foundation directly or indirectly affiliated with, or related to, one or more tax-exempt organizations
described in section 501(c) of the Code (other than section 501(c)(3)) or in section 527?...........YesNo

If “Yes,” complete the following schedule.

(a) Name of organization	(b) Type of organization	(c) Description of relationship

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer or fiduciary) is based on all information of which preparer has any knowledge.

	Signature of officer or trustee	Date	Title

Preparer's Signature	Date	Check if self- employed	PTIN
Firm's name Firm's address		Firm's EIN
		Phone no.

Form 990-PF (2010)

Additional Data

Software ID:
Software Version:

Form 990PF - Special Condition Description:

Special Condition Description

Name of Bond	End of Year Book Value	End of Year Fair Market Value
BEGINNING OF YEAR
6753.118-VANGUARD GNMA FUND 36	69,951	72,528
50000-GOLDMAN SACHS GROUP INC 6.875	52,308	50,081
100000-CREDIT SUISSE FB USA INC	110,704	104,777
200000-TOYOTA MOTOR CREDIT CORP	203,292	205,817
75000-CHEVRON CORP 3	75,745	77,390
100000-TRAVELERS COS INC	101,173	106,064
100000-BB&T CORPORATION 3.850% 07/2	104,500	104,029
100000-GOLDMAN SACHS GROUP INC.	100,927	106,736
100000-WELLS FARGO COMPANY	99,694	105,825
200000-MARSH & MCLENNAN COS INC	202,478	209,009
100000-GOLDMAN SACHS GROUP INC	101,264	107,354
100000-LEGGETT & PLATT INC 4.700% 0	105,531	105,692
100000-BANK OF AMERICA CORP 4.900%	104,951	104,261
100000-NUCOR CORP 5.000% 06/01/13	100,000	107,969
200000-ELECTRONIC DATA SYSTEMS	216,034	222,928
100000-FIRST DATA CORPORATION	94,787	83,800
100000-ROYAL BANK OF SCOTLAND PLC 3.	101,122	101,016
65000-APACHE CORP 6.000% 09/15/13	72,598	72,988
100000-BROWN-FORMAN CORPORATION	101,564	108,837
100000-DELL INC CORP	101,855	110,428
150000-GLAXOSMITHKLINE	140,679	161,731
100000-NORFOLK SOUTHERN CORP	98,587	110,239
250000-AMERICAN GENERAL FINANCE	250,000	213,204
100000-CODELCO INC 4.750% 10/15/14	105,977	106,826
250000-AMGEN INC	247,557	274,727
50000-MERCK & CO. INC 4	46,970	55,060
100000-KIMBERLY-CLARK CORP	94,737	110,826
100000-MEDTRONIC INC	92,907	110,693
100000-BARCLAYS BANK PLC 4.000% 06/	100,000	100,538
100000-HARTFORD FINANCIAL GROUP	95,276	103,770
50000-LILLY ELI & CO 5.200% 03/15/	53,925	55,422
100000-TARGET CORPORATION	99,170	112,068
150000-GEORGIA POWER COMPANY	149,676	169,399
100000-NUCOR CORPORATION	103,735	112,683
200000-DANAHER CORP	204,412	226,353
346533.24-MASTER ASSET SECURITIZATIO	337,870	349,399
72696.09-RBSGC MTG PASS THRU CERTS	70,333	71,156
7716.049-OPPENHEIMER INTERNATIONAL B	50,000	50,617
3725.782-TEMPLETON GLOBAL BOND FUND	50,000	50,522
50000-TULSA OK IND AUTH REV 3.090%	50,000	50,795
100000-WY CMNTY DEV AUTH HSG REV	102,664	106,028
75000-UNIV OF WY FDN REV TAXABLE	75,000	79,370

Name of Stock	End of Year Book Value	End of Year Fair Market Value
BEGINNING OF YEAR
1500-AT&T INC 6.375% 02/15/2056 SER	37,500	39,915
2000-NATL CITY CAP TR III PFD 6.625%	50,600	49,720
4300-ABBOTT LABORATORIES	179,320	206,013
5625-ADOBE SYSTEMS	159,908	173,137
3000-AFLAC INC	121,538	169,290
2000-AIR PRODUCTS & CHEMICALS	108,805	181,900
2200-APACHE CORPORATION	233,882	262,306
850-APPLE COMPUTER INC	97,349	274,176
7500-BANK AMERICA CORPORATION	117,504	100,050
2488-BERKSHIRE HATHAWAY INC - CL B	196,851	199,314
4000-BEST BUY INC	167,153	137,160
2600-CATERPILLAR INC	119,540	243,516
3000-CHEVRON CORP	155,436	273,750
8500-CISCO SYSTEMS INC	127,282	171,955
28000-CITIGROUP INC	122,201	132,440
2500-COCA COLA COMPANY	110,406	164,425
3000-COSTCO WHOLESALE CORPORATION	99,455	216,630
2500-DANAHER CORPORATION	72,280	117,925
1900-DEERE & COMPANY	107,275	157,795
5000-DISNEY WALT CO HOLDINGS	109,046	187,550
4000-DU PONT E I DE NEMOURS & COMPAN	191,539	199,520
11000-EMC CORPORATION	136,532	251,900
3200-EMERSON ELECTRIC COMPANY	103,182	182,944
4300-EXELON CORPORATION	205,521	179,052
2800-EXXON MOBIL CORPORATION	123,679	204,736
2000-FLUOR CORPORATION	102,817	132,520
11500-GENERAL ELECTRIC COMPANY	211,115	210,335
350-GOOGLE INC	169,842	207,890
3600-HEWLETT PACKARD COMPANY	86,552	151,560
3500-ILLINOIS TOOL WORKS INC	116,800	186,900
11000-INTEL CORPORATION	233,896	231,330
1213-INTERNATIONAL BUSINESS MACHINES	117,193	178,020
3500-JOHNSON & JOHNSON	198,108	216,475
5000-JP MORGAN CHASE & COMPANY	211,773	212,100
6500-KRAFT FOODS INC	197,973	204,815
3200-MCDONALDS CORPORATION	188,380	245,632
5000-MDU RESOURCES GROUP INC	87,897	101,350
5700-MERCK & CO INC	211,271	205,428
4100-METLIFE INC	206,055	182,204
4000-NEXTERA ENERTY INC	201,784	207,960
3200-NORTHERN TRUST CORPORATION	173,330	177,312
7000-ORACLE CORPORATION	78,267	219,100
4000-PEABODY ENERGY CORPORATION	130,585	255,920
3000-PEPSICO INC	161,443	195,990
3200-PROCTER & GAMBLE COMPANY	179,726	205,856
3671-QUALCOMM INC	147,017	181,678
3000-SCHLUMBERGER LIMITED	112,513	250,500
4600-TARGET CORPORATION	221,748	276,598
5500-U S BANCORP DEL	163,841	148,335
2000-UNITED TECHNOLOGIES CORPORATION	69,325	157,440
3500-VERIZON COMMUNICATIONS	121,983	125,230
3000-WAL-MART STORES INC	167,995	161,790
2000-BHP BILLITON LIMITED ADR	143,216	185,840
4250-TEVA PHARMACEUTICAL INDUSTRIES	206,419	221,553
103349.576-LKCM SMALL CAP EQ INSTITU	197,486	222,412
101210.172-MORGAN STANLEY INST MID C	253,181	369,608
9608.612-OPPENHEIMER MAIN ST SMALL C	193,597	206,105
5891.259-T ROWE PRICE MID CAP GROWTH	263,653	344,815
13588.491-T ROWE PRICE MID CAP VALUE	302,295	322,183
13704.09-AMERICAN EUROPACIFIC GROWTH	458,762	566,390
9563.644-HARBOR INTERNATIONAL FUND	395,811	579,079
13218.587-EATON VANCE PARAMETRIC TAX	567,000	675,734

Description	Beginning of Year - Book Value	End of Year - Book Value	End of Year - Fair Market Value
ACCRUED DIVIDENDS AND INTEREST	839	1,595	1,595
ROYALTIES RECEIVABLE	2,142	1,566	1,566
PENDING TRADE PROCEEDS	38,689

Category	Amount	Net Investment Income	Disbursements for Charitable Purposes
SECRETARY OF STATE	25	13	12
EXCISE TAXES	7,200
FOREIGN TAXES ON DIVIDENDS	252	252