SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 11-K

(Mark One)

þ		Annual Report pursuant to Section 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2009

o		Transition Report pursuant to Section 15(d) of the Securities Exchange Act of 1934 for the transition period from                      to

Commission File Number 1-5627

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

ITT SALARIED INVESTMENT AND SAVINGS PLAN

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

ITT CORPORATION
1133 WESTCHESTER AVENUE, WHITE PLAINS, NY 10604

 

 

ITT SALARIED INVESTMENT AND SAVINGS PLAN

		Page
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			1
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits as of December 31, 2009 and 2008			2
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2009			3
Notes to Financial Statements as of December 31, 2009 and 2008, and for the Year Ended December 31, 2009			4 - 16
SUPPLEMENTAL SCHEDULE-
Form 5500, Schedule H, Part IV, Line 4i — Schedule of Assets (Held at End of Year) as of December 31, 2009			17 - 45
Exhibit 23 — Consent of Independent Registered Public Accounting Firm

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

These financial statements have been prepared from the ITT Salaried Investment and Savings Plan’s books and records after making all necessary adjustments thereto, and they represent the final statements for the period ended December 31, 2009.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Investment and Savings Plan Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

ITT SALARIED INVESTMENT AND SAVINGS PLAN

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees and Participants of the
ITT Salaried Investment and Savings Plan
White Plains, New York

We have audited the accompanying statements of net assets available for benefits of the ITT Salaried Investment and Savings Plan (the “Plan”) as of December 31, 2009 and 2008, and the related statement of changes in net assets available for benefits for the year ended December 31, 2009. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with 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. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2009 and 2008, and the changes in net assets available for benefits for the year ended December 31, 2009 in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic 2009 financial statements taken as a whole. The supplemental schedule of assets (held at end of year) as of December 31, 2009, is presented for the purpose of additional analysis and are not a required part of the basic 2009 financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This schedule is the responsibility of the Plan’s management. Such schedule has been subjected to the auditing procedures applied in our audit of the basic 2009 financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic 2009 financial statements taken as a whole.

/s/  Deloitte & Touche LLP

Stamford, CT

June 28, 2010

ITT SALARIED INVESTMENT AND SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
($ IN THOUSANDS)

		December 31,
		2009				2008
Assets:
Investments:
Cash and cash equivalents		$	30,736			$	21,972
Equities			745,664				670,162
Mutual funds			193,790				142,787
U.S. government securities			18,341				18,243
Corporate bonds			26,690				21,140
Guaranteed investment contracts			697,382				642,142
Common collective trusts			353,765				253,542
Brokerage account			8,383				5,389
Member loans			27,961				26,583
Total investments			2,102,712				1,801,960
Receivables:
Dividends			2,265				2,195
Interest			515				423
Unsettled security sales			293				439
Total receivables			3,073				3,057
Collateral held under securities lending agreement			—				82,313
Non-participant directed investments			12,601				—
Total assets			2,118,386				1,887,330
Liabilities:
Liability to return collateral held under securities lending agreement			—				92,702
Liability to plan sponsor			19,440				—
Accrued financial services expense			817				769
Accrued administrative expense			220				187
Unsettled security purchases			1,294				893
Total liabilities			21,771				94,551
NET ASSETS AVAILABLE FOR BENEFITS AT FAIR VALUE			2,096,615				1,792,779
Adjustment from fair value to contract value for fully benefit-responsive investment contracts			(4,727	)			44,833
NET ASSETS AVAILABLE FOR BENEFITS		$	2,091,888			$	1,837,612

The accompanying notes to financial statements are an integral part of the above statements.

ITT SALARIED INVESTMENT AND SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
($ IN THOUSANDS)

		Year ended
		December 31, 2009
Investment income:
Net appreciation in fair value of investments		$	218,753
Dividends			15,170
Interest			26,216
Total investment income			260,139
Contributions:
Participants			84,294
Employer			27,825
Total contributions			112,119
Asset rollovers			5,786
DEDUCTIONS:
Withdrawals and distributions			(117,901	)
Investment management and administrative expenses			(5,867	)
Total deductions			(123,768	)
INCREASE IN NET ASSETS			254,276
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year			1,837,612
End of year		$	2,091,888

The accompanying notes to financial statements are an integral part of the above statement.

ITT SALARIED INVESTMENT AND SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 2009 AND 2008, AND
FOR THE YEAR ENDED DECEMBER 31, 2009
($ IN THOUSANDS)

1. DESCRIPTION OF THE PLAN

The following description of the ITT Salaried Investment and Savings Plan (the “Plan”) is provided for general information purposes only. Eligible employees, referred to herein as Members (“Members”), should refer to the Plan document for more complete information about the Plan.

General—The Plan is a defined contribution plan generally covering all regular salaried U.S. employees of ITT Corporation (the “Company” or the “Plan Sponsor”). Employees are eligible to join the Plan on the first day of the calendar month following completion of one month of service. Part—time /temporary employees are eligible as of the first of the month following the completion of at least 1,000 hours of service in an anniversary year. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).

Contributions—

Employee—A Member may generally elect to contribute 2% to 25% of base salary. A Member may designate their contributions as Before-Tax Contributions, After-Tax Contributions, or any combination of the two. In 2009, a Member who is considered a Highly Compensated Employee (“HCE”) under the Plan may elect Plan contributions up to a maximum of 14% of base salary as either Before-Tax Contributions, After-Tax Contributions, or any combination. Member contributions are subject to the dollar limitation contained in Section 402(g) of the Internal Revenue Code (“IRC”). All salaried employees who first satisfy the eligibility requirements for participation in the Plan on or after January 1, 2006 and who have not elected a contribution rate, shall be deemed to have elected a 2% before-tax employee contribution rate, provided however, that at any time, such employee may elect to contribute at a different rate, including 0%, in accordance with the terms of the Plan.

Employer—An amount equal to 50% of a Member’s first 6% of base salary saved is matched by the Company. In addition, the Company contributes 1/2 of 1% of base salary to the Floor Company Contribution Account, as defined by the Plan, to each eligible Member. All Members have the ability to invest their Company contributions in any of the Plan’s investment options subject to the same limitations as the employee’s contributions.

Any contributions (employee and/or Company) directed by Members into the ITT Stock Fund, including future contributions to the Plan, are deposited into the Employee Stock Ownership account (“ESOP”). All dividends associated with the contributions held in the ESOP in the Plan are immediately 100% vested. In addition, Members can make an election regarding the payment of their ESOP dividends. Members can elect to have their ESOP dividends either reinvested in the ITT Stock Fund or paid to them in cash on a quarterly basis.

The Plan limits the amount that may be held in the ITT Stock Fund to 20% of a Member’s total account balance. Members who hold 20% or more of their total account balance in the ITT Stock Fund at the end of any calendar quarter, will not be permitted to designate any future contributions (employee and Company) to the ITT Stock Fund, or transfer balances into that Fund, for the following calendar quarter. Members who hold less than 20% of their total account balance in the ITT Stock Fund may designate up to 20% of their future contributions (employee and Company) to the ITT Stock Fund, and may transfer balances into that Fund, provided that the balance in the ITT Stock Fund does not exceed 20% of the Member’s total account balance after the transfer.

The Plan also limits the amount that may be held in the Schwab Personal Choice Retirement Account (“PCRA”) to 20% of a Member’s total account balance.

Investment Direction— Members may direct employee contributions and Company contributions, in any whole percentage, among any of twenty-four investment options, and the Members can change their future contributions and reallocate accumulated investments in 1% increments on a daily basis among the twenty-four funds, however, limited to a maximum of four fund reallocations or transfers in any calendar month A reallocation or a transfer shall be defined as a single reallocation or a single transfer, or as a series of reallocations and/or transfers taking place on a single business day. The twenty-four funds are as follows:

Stable Value Fund
Long Term Bond Fund
JPMCB SmartRetirement Income Fund
JPMCB SmartRetirement Fund 2010
JPMCB SmartRetirement Fund 2015
JPMCB SmartRetirement Fund 2020
JPMCB SmartRetirement Fund 2025
JPMCB SmartRetirement Fund 2030
JPMCB SmartRetirement Fund 2035
JPMCB SmartRetirement Fund 2040
JPMCB SmartRetirement Fund 2045
JPMCB SmartRetirement Fund 2050
Balanced Fund
Enhanced Equity Index Fund
Large Cap Core Plus Fund
Large Cap Value Fund
Large Cap Growth Fund
Global Equity Fund
International Equity Fund
Small Cap Core Fund
Small Cap Value Fund
Small Cap Growth Fund
ITT Stock Fund
Schwab Personal Choice Retirement Account

Member Accounts—Each Member’s account is credited with the Member’s contributions, Company contributions, plan earnings or losses, and withdrawals, net of administrative expenses and investment management fees. Allocations are based on Member account balances, as defined in the Plan document. The benefit to which a Member is entitled is the benefit that can be provided from the Member’s vested account.

Plan accounts are valued and reconciled between the trustee and record keeper daily. Members can initiate transactions by using the Plan’s web site or by speaking to a Plan representative at the ITT Benefits Center (“Benefits Center”).

A deferred Member is a Member who has terminated employment with the Company and has (i) elected to defer their account in the Plan, or (ii) not made any election prior to termination and, therefore, their account was automatically deferred in the Plan. A deferred Member is also the beneficiary of a deceased Member or deferred Member, or an alternate payee designated as such pursuant to a domestic relations order as qualified by the Plan.

Vesting—Members are immediately vested in their contributions and the Company floor contributions plus earnings thereon. Member’s interests in matching Company contributions vest according to the following schedule, except as noted previously with respect to dividends on ESOP shares which are 100% vested:

		Non-forfeitable
Years of Service		Percentage
Less than 1 year			0	%
1 but less than 2 years			20	%
2 but less than 3 years			40	%
3 but less than 4 years			60	%
4 but less than 5 years			80	%
5 or more years			100	%

Forfeitures—At December 31, 2009 and 2008, forfeited nonvested accounts totaled $798 and $729, respectively. During the year ended December 31, 2009, the forfeitures of $798 were used to reduce employer contributions to the Plan.

Member Loans—A Member may request a loan in any specified whole dollar amount which must be at least one thousand dollars but which may not exceed the lesser of 50% of the vested account balance or fifty thousand dollars, reduced by the Member’s highest outstanding loan balance under all plans of the Company, if any, during the prior one-year period. The interest rate charged by the Plan is based on the prime rate plus 1%, as published in the Wall Street Journal on the first business day of the month in which the loan is originated, and remains the same throughout the term of the loan. General purpose loan terms range from one to sixty months. If the loan is used in the purchase of a primary residence, the loan term can be for a period of up to one hundred-eighty months. Members may have up to two loans outstanding at the same time. Loans to Members at December 31, 2009 and 2008 were $27,961 and $26,583, respectively. The loans are secured by the balance in the Member’s account.

A terminated Member may continue to make periodic repayment on their loans after separation by contacting the Benefits Center. However, no new loans can be requested after termination of employment.

In 2009, it was determined that a number of outstanding loans were delinquent during 2008 and not defaulted in a timely manner. The Plan filed a Voluntary Correction Program application with the Internal Revenue Service (“IRS”) and received a Compliance Statement from the IRS in June 2009, through which the IRS accepted our Voluntary Correction Program.

Payment of Benefits—On termination of employment (including death, disability, or retirement), a Member or their surviving spouse beneficiary may elect to receive a lump-sum amount equal to the value of the Member’s vested interest in their account paid in cash or as a rollover to another qualified plan or an Individual Retirement Account (“IRA”), or periodic payments under one of two alternative installment options. In any case, a Member or their surviving spouse beneficiary whose vested account balance is more than five thousand dollars may elect to keep their account balance in the Plan until the year in which the Member reaches/would have reached age 70 ¹/2. Upon the death of a Member, with a non-spouse beneficiary, the distribution must be made within five years from the Member’s date of death in the form of a lump sum payment or annual fixed period installments, provided that the number of installments does not extend beyond five years from the date of the Member’s death. A non-spouse beneficiary who elects payment in the form of a lump sum, may elect that the payment be made as a rollover to a “special” IRA in accordance with the provisions of Section 402 (c)(11) of the IRC.

Direct Rollover of Certain Distributions — If a Member leaves the Company for any reason, the Member is entitled to receive a distribution of the total vested value of their account. The distribution can be in the form of a rollover as follows:

(1)		Elective Rollover — A Member may elect a rollover distribution paid directly to not more than two eligible retirement plans as specified by the Member.
(2)		Mandatory Rollover —

	(A)		If a Member’s account balance is greater than $1,000 but less than $5,001 and the Member fails to make an affirmative election to either receive the lump sum payment or have it directly rolled over to another qualified plan or an IRA within the election period, the account balance will be automatically rolled over to an IRA established in the Member’s name.
	(B)		If a Member’s account balance is $1,000 or less and the Member fails to make an affirmative election to either receive the lump sum payment or have it directly rolled over to another qualified plan or an IRA within the election period, the account balance will be automatically paid out to the Member.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting—The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain amounts have been reclassified to conform to current year presentation.

Use of Estimates, Risks and Uncertainties— The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Further, the Plan’s valuation methods may produce a fair value estimate that may not be indicative of net realizable value or reflective of future fair values. While the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to estimate fair value could result in a different measure of fair value at the measurement date which could materially affect the amounts reported in the financial statements.

Income Recognition— Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Expenses—The Plan pays for the administrative expenses of the Plan up to 0.25% of the market value of trust assets. In 2009, the plan accrued 0.125% of trust assets. These expenses are limited to services provided by unrelated vendors. The Company pays Plan administrative expenses which are not paid by the Plan. In addition to the administrative expense charge, an investment management fee is charged to each investment fund except for the ITT Stock Fund and the PCRA. In 2009, these investment management fees totaled $3,087 and are reflected as a component of Investment Management and Administrative expense on the Statement of Changes in Net Assets Available For Benefits.

Payment of Benefits—Benefit payments to Members are recorded upon distribution. Amounts allocated to accounts of persons who have elected to withdraw from the Plan but have not yet been paid were $5 and $177 at December 31, 2009 and 2008, respectively.

3. FAIR VALUE MEASUREMENT

The Plan’s investments are measured at fair value except for its benefit-responsive investment contracts which are stated at fair value and then adjusted to contract value (Note 8). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price).

In measuring plan assets at fair value, a fair value hierarchy is applied which categorizes and prioritizes the inputs used to estimate fair value into three levels. The fair value hierarchy is based on maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. Classification within the fair value hierarchy is based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are defined as follows:

	•		Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
	•		Level 2 inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices (in non-active markets or in active markets for similar assets or liabilities), inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
	•		Level 3 inputs are unobservable inputs for the assets or liabilities.

8

	•		Brokerage Account — Securities held in the PCRA Brokerage account are valued at the closing price reported on the major market on which the individual securities are traded at the measurement date. These securities are classified in Level 1 of the fair value hierarchy.
	•		Member loans — Loans to plan Members, all of which are secured by vested account balances of borrowing Members, are measured at fair value, which approximates their outstanding balances. Member loans are classified in Level 3 of the fair value hierarchy.

The following table sets forth by level within the fair value hierarchy a summary of the Plan’s investments measured at fair value on a recurring basis at December 31, 2009.

Fair Value Measurements at December 31, 2009

		Quoted Prices in
		Active Markets for				Significant Other				Significant
		Identical Assets				Observable Inputs				Unobservable Inputs
		(Level 1)				(Level 2)				(Level 3)				Total
Cash and cash equivalents		$	30,736											$	30,736
Equities			754,047												754,047
Mutual funds			193,790												193,790
U.S. government securities						$	18,341								18,341
Corporate bonds							26,690								26,690
Guaranteed investment contracts			17,370				678,893			$	1,119				697,382
Common collective trusts							353,765								353,765
Member loans											27,961				27,961
Participant directed investments			995,943				1,077,689				29,080				2,102,712
Non-participant directed investments			1,100				11,501								12,601
Total		$	997,043			$	1,089,190			$	29,080			$	2,115,313

Fair Value Measurements at December 31, 2008

		Quoted Prices in
		Active Markets for				Significant Other				Significant
		Identical Assets				Observable Inputs				Unobservable Inputs
		(Level 1)				(Level 2)				(Level 3)				Total
Cash and cash equivalents		$	21,972											$	21,972
Equities			675,551												675,551
Mutual funds			142,787												142,787
U.S. government securities						$	18,243								18,243
Corporate bonds							21,140								21,140
Guaranteed investment contracts			20,407				594,584			$	27,151				642,142
Common collective trusts							150,664				102,878				253,542
Member loans											26,583				26,583
Subtotal			860,717				784,631				156,612				1,801,960
Collateral held under securities lending agreement			36,834				42,726				2,753				82,313
Total		$	897,551			$	827,357			$	159,365			$	1,884,273

The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3):

		Guaranteed												Collateral held
		Investment				Common Collective								under securities
		Contracts				Trusts				Member Loans				lending agreement				Total
Beginning balance - January 1, 2008		$	46,221			$	124,204			$	25,389			$	—			$	195,814
Realized (losses)			(3,304	)			(232	)											(3,536	)
Unrealized (losses)			(2,200	)			(30,960	)							(765	)			(33,925	)
Purchases, sales, issuance, and settlements, net			(13,566	)			13,396				1,194				(163	)			861
Transfers in and/or out of Level 3							(3,530	)							3,681				151
Balance - December 31, 2008			27,151				102,878				26,583				2,753				159,365
Unrealized (losses)			(481	)														$	(481	)
Purchases, sales, issuance, and settlements, net											1,378								1,378
Transfers in and/or out of Level 3			(25,551	)			(102,878	)			—				(2,753	)			(131,182	)
Ending balance - December 31, 2009		$	1,119			$	—			$	27,961			$	—			$	29,080

The Plan reports transfers within the fair value hierarchy as of the beginning of the period. The 2009 transfers primarily reflect adoption of the NAV practical expedient described above.

4. INVESTMENTS

The following presents investments that represent 5 percent or more of the Plan’s net assets available for benefits:

		December 31,
		2009				2008
ITT Corporation Common Stock, 9,208,369 and 10,077,932 shares, respectively, at fair value		$	458,024			$	463,484
Pyramid Enhanced Intermediate Fixed Income Fund*		$	308,210			$	274,198
Pyramid Short Managed Maturing Fund*		$	117,026			$	104,351
American Global New Perspective Fund (Global Equity Fund), 5,497,803 and 5,340,014 shares, respectively, at fair value		$	140,964			$	100,819
Pyramid Intermediate Managed Maturing Fund*		$	115,088			$	99,756

During the year ended December 31, 2009, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated/(depreciated) in value by $218,753, as follows:

Equities		$	99,624
Mutual funds			45,822
U.S. government securities			(447	)
Corporate bonds			4,718
Common collective trusts			67,422
Other			1,614
Net appreciation in fair value of investments		$	218,753

5. SECURITIES LENDING

Through July 28, 2009, the Plan participated in a securities lending program through the trustee. Under this program, the Plan’s investment securities were loaned to investment bankers for a fee. On July 28, 2009, the Plan entered into a loan agreement with the Company for the purpose of unwinding the securities lending program and purchasing the collateral securities. The Plan repaid the collateral it held in return for the securities it had lent. As the value of the collateral held was less than the Plan’s obligation to return the collateral, the Plan entered into a loan agreement with the Company to fund the collateral deficiency.

Fee income from the securities lending program was $92 for the year ended December 31, 2009.

At December 31, 2008, $90,662 of the Plan’s securities were loaned through the securities lending program. The value of the collateral received for securities on loan at December 31, 2008 was $92,702. The fair value of invested collateral was $82,313 at December 31, 2008 . The net investment loss from the invested collateral was $10,389 and fee income from the securities lending program was $355 for the year ended December 31, 2008. The investment loss and fee income are recorded in net change in fair value of investments on the Statement of Changes in Net Assets Available for Benefits. As of July 28, 2009, no plan participant had realized a loss as a result of the collateral deficiency.

The assets acquired from the securities lending agreement are classified as “Non-participant directed investments”. Proceeds from the liquidation of these assets will be utilized to repay the liability to the Plan Sponsor.

Plan assets on loan under the securities lending agreement at December 31, 2008 were as follows:

Equities		$	29,018
U.S. government securities			49,516
Corporate bonds			12,128
Total		$	90,662

6. PLAN TRUSTEE

Fees paid by the Plan for trustee services provided by Wells Fargo Bank, NA amounted to $393 for the year ended December 31, 2009.

7. FEDERAL INCOME TAX STATUS

The IRS has determined and informed the Company by letter dated February 12, 2004 that the Plan and related trust are designed in accordance with applicable sections of the IRC. The Plan has been amended since receiving the determination letter. However, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC and the Plan and the related trust continue to be tax-exempt. Therefore, no provision for income taxes has been included in the Plan’s financial statements. The Plan is in the process of being amended and restated in preparation for a determination letter filing by January 31, 2011.

8. INVESTMENT CONTRACTS WITH INSURANCE AND OTHER FINANCIAL INSTITUTIONS

The Plan provides a self managed stable value investment option to Members that includes synthetic GICs which simulate the performance of a GIC through an issuer’s guarantee of a specific interest rate (the wrapper contract) and a portfolio of financial instruments that are owned by the Plan. The synthetic GIC includes underlying assets which are held in trust owned by the Plan and utilizes benefit-responsive wrapper contracts issued by Bank of America, N.A., Natixis Financial Products, Inc. (2008 only), JP Morgan Chase Bank and Monumental Life Insurance Co. The contracts provide that the Members execute plan transactions at contract value. Contract value represents contributions made to the fund, plus earnings, less Member withdrawals.

The following investments are the underlying categories in the guaranteed investment contracts as of December 31, 2009 and 2008:

		2009				2008
Cash and cash equivalents		$	17,370			$	20,407
U.S. government securities			83,919				78,092
Corporate bonds			40,249				33,051
Investment contracts			5,572				5,136
Common collective trusts			540,324				478,305
Other			9,948				27,151
Total		$	697,382			$	642,142

The interest rates are reset quarterly based on market rates of other similar investments, the current yield of the underlying investments and the spread between the market value and contract value. The rate cannot be less than 2%. Certain events such as plan termination or a Plan merger initiated by the Company may limit the ability of the Plan to transact at contract value or may allow for the termination of the wrapper contract at less than current value. The Company does not believe that any events that may limit the ability of the Plan to transact at contract value are probable.

		2009				2008
Average yields:
Based on year-end average yield of investment (1)			3.29	%			6.83	%
Based on average yield credited to Members (2)			3.44	%			3.68	%

The Statement of Net Assets Available for Benefits presents investment contracts at fair value, as well as providing an additional line item showing an adjustment from fair value to contract value for fully benefit-responsive investment contracts. The Statement of Changes in Net Assets Available for Benefits is presented on a contract value basis.

9. EXEMPT PARTY-IN-INTEREST TRANSACTIONS

At December 31, 2009 and 2008, the Plan held 9,208,369 and 10,077,932 shares outstanding, respectively, of common stock of the Company, with a cost basis of $219,964 and $236,646, respectively. During the year ended December 31, 2009, the Plan recorded related dividend income of $7,827 and net appreciation of $33,363.

Certain administrative functions are performed by the officers and employees of the Company (who may also be Members in the Plan) at no cost to the Plan.

At December 31, 2009 and 2008, Wells Fargo Bank, NA maintained short-term investments of $48,888 and $44,336, respectively.

Fees paid by the Plan for the investment management services were $3,087 for the year-ended December 31, 2009.

In July of 2009, the Company entered into a loan agreement with the Plan for the purpose of unwinding the securities lending program and purchasing the collateral securities. The original loan amount was $30.4 million of which $19.4 million was outstanding at December 31, 2009.

These transactions are not deemed prohibited party-in-interest transactions, because they are covered by statutory or administrative exemptions from the IRC and ERISA’s rules on prohibited transactions.

10. PLAN TERMINATION

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, Members will become 100% vested in their accounts.

11. SUBSEQUENT EVENTS

Effective January 1, 2010, the Plan was amended to charge a $50 loan origination fee to the participant’s account for each loan that the participant receives. Prior to January 1, 2010, the loan origination fee was charged to the Plan’s administrative expense.

Effective January 1, 2010, the Plan was amended to increase the maximum contribution percentage for HCE from 14% to 18%.

12. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

The following is a reconciliation of net assets available for benefits reflected in the financial statements to the Plan’s Form 5500:

		As of
		December 31,
		2009				2008
Net assets available for benefits per the financial statements		$	2,091,888			$	1,837,612
Amounts allocated to withdrawing Members			(5	)			(177	)
Adjustment from fair value to contract value for fully benefit responsive investment contracts			4,727				(44,833	)
Net assets available for benefits per the Form 5500		$	2,096,610			$	1,792,602

		As of
		December 31, 2009
Increase in net assets per financial statements		$	254,276
Adjustment from fair value to contract value for fully benefit responsive investment contracts			49,560
Add: Amounts allocated to withdrawing Members at December 31, 2008			177
Less: Amounts allocated to withdrawing Members at December 31, 2009			(5	)
Net income per Form 5500		$	304,008

The following is a reconciliation of withdrawals and distributions to Members according to the financial statements to the Form 5500:

		Year Ended
		December 31, 2009
Withdrawals and distributions per the financial statements		$	117,901
Add: Amounts allocated to withdrawing Members at December 31, 2009			5
Less: Amounts allocated to withdrawing Members at December 31, 2008			(177	)
Less: Amounts deemed distributed for tax purposes in 2009			(2,147	)
Withdrawals and distributions per the Form 5500		$	115,582

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		Collateral Cash Held at Broker		Cash Equivalent		**			802,251
*		Wells Fargo Short Term Investment Fund		Money Market		**			1,543,720
		Broker Canadian Dollar		Cash — Invested in Canadian Dollar		**			(24	)
		JP Morgan Liquidity Fund		Money Market		**			720,607
*		Wells Fargo Short Term Investment Fund		Money Market		**			27,689,884
*		Wells Fargo Advantage Government		Money Market		**			19,654,245
		Broker — Australian Dollar		Cash — Invested in Australian Dollar		**			44,435
		Broker — Canadian Dollar		Cash — Invested in Canadian Dollar		**			(1,831	)
		Broker — Euro		Cash — Invested in Euro		**			(54,377	)
		Broker — Japanese Yen		Cash — Invested in Japanese Yen		**			30,936
		Broker — Pound Sterling		Cash — Invested in Pound Sterling		**			(7,558	)
		United States Dollars		Cash — US Dollars		**			(13,719	)
		AMERICAN HONDA FINANCE		Finance Comp. 0.68 February 5, 2010		**			625,570
		ARMT 2005-1 5A2		Collateralized Mortgage Obligation — Floater 0.56 January 25, 2010		**			19,079
		ARMT 2005-4 7A2		Collateralized Mortgage Obligation — Floater 0.46 January 25, 2010		**			25,352
		CSFB 2001-CK1 A3		Comm Pty — Securities 6.38 December 18, 2010		**			271,253
		CVS CAREMARK CORP		Cash Equivalent 0.56 March 1, 2010		**			450,374
		CWL 2003-5 MF1		Asset Backed Security — Home Equity Loans — 5.41 January 25, 2034		**			135,215
		CWL 2004-1 3A		Asset Backed Security — Home Equity Loans — 0.51 January 25, 2010		**			884
		CWL 2004-13 MV1		Asset Backed Security — Home Equity Loans — 0.73 January 25, 2010		**			62,689
		DEUTSCHE BANK NY		Cash Equivalent 0.85 March 18, 2010		**			498,729
		FANNIE MAE		Cash Equivalent 4.75 March 12, 2010		**			1,202,555
		FHR 2931 GA		Collateralized Mortgage Obligation — PAC 5.00 November 15, 2028		**			270,460
		FNR 2006-43 G		Collateralized Mortgage Obligation — Sequential 6.5 September 25, 2033		**			222,273
		FNR 2006-59 DA		Collateralized Mortgage Obligation — Sequential 6.5 December 25, 2033		**			193,634
		FNR 2006-63 AB		Collateralized Mortgage Obligation — Sequential 6.5 October 25, 2033		**			192,723
		FNR 2006-63 AE		Collateralized Mortgage Obligation — Sequential 6.5 October 25, 2033		**			196,227
		FNR 2006-78 BC		Collateralized Mortgage Obligation — Sequential 6.5 January 25, 2034		**			201,913
		GENERAL ELEC CAP CORP		Finance Comp. 0.34 February 16, 2010		**			576,386

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		GOLDMAN SACHS GROUP INC		Cash Equivalent .35 March 29, 2010		**			575,264
		MEDL 2005-2G A		Asset Backed Security — Global Residential Mortgage — .31 February 22, 2010		**			156,942
		OHIO POWER COMPANY		Cash Equivalent — .46 April 5, 2010		**			350,393
		OOMLT 2003-4 A2		Asset Backed Security — Home Equity Loans — .87 January 25, 2010		**			32,583
		OOMLT 2005-4 A3		Asset Backed Security — Home Equity Loans — .49 January 25, 2010		**			77,271
		OOMLT 2007-4 2A1		Asset Backed Security — Home Equity Loans — .32 January 25, 2010		**			72,316
		PUB SVC ELEC & GAS		Cash Equivalent — 1.13 March 12, 2010		**			501,017
		RAMP 2005-EFC6 M1		Asset Backed Security — Home Equity Loans — 0.64 January 25, 2010		**			77,014
		RAMP 2006-EFC1 A2		Asset Backed Security — Home Equity Loans — 0.43 January 25, 2010		**			125,150
		THE MONY GROUP INC		Cash Equivalent — 8.35 March 15, 2010		**			347,400
		TREASURY BILL		Treasury Bill — January 14, 2010		**			84,999
		US DOLLAR		Cash January 4, 2010		**			(4,731,507	)
		US TREASURY N/B		Cash Equivalent — 2.62 May 31, 2010		**			6,022,106
		VIRGINIA ELEC & POWER CO		Cash Equivalent — 4.5 December 15, 2010		**			273,067
		WASI 2003-HE3 A		Asset Backed Security — Home Equity Line of Credit 0.48 January 25, 2010		**			22,558
		WFHET 2004-2 AI6		Asset Backed Security — Home Equity Line of Credit 5.0 May 25, 2034		**			286,996
		US Treasury Bill		Short Term US Treasury		**			682,946
		US Treasury Bill		US Government Security, Par — 2,325,000 Maturity 1/21/2010		**			2,324,550
		US Treasury Bond		US Government Security, Par — 3,000,000 Maturity 2/15/2019, Interest 8.8750%		**			4,190,625
		US Treasury Inflation-Index Bond		US Government Security, Par — 6,362,458.200 Maturity 01/15/2015		**			6,616,957
		US Treasury Bond		US Government Security, Par — 3,475,000.00 Maturity 11/15/2021, Interest 8.00%		**			4,731,974
		US Treasury Bond		US Government Security, Par — 1,850,000.00 Maturity 08/15/2022, Interest 7.250%		**			2,396,618
		US Treasury Note		US Government Security, Par — 385,000.000 Maturity 11/30/2012, Interest 3.375%		**			404,370

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		US TREASURY N/B		US Treasury 2.12 November 30, 2014		**			831,419
		US TREASURY N/B		US Treasury 1.38 November 15, 2012		**			12,686,598
		US TREASURY N/B		US Treasury 3.38 November 15, 2019		**			357,482
		US TREASURY N/B		US Treasury 3.0 September 30, 2016		**			6,566,412
		US TREASURY N/B		US Treasury 3.62 August 15, 2019		**			473,441
		US TREASURY N/B		US Treasury 4.25 May 15, 2039		**			235,881
		US TREASURY N/B		US Treasury 1.88 April 30, 2014		**			6,307,390
		US TREASURY N/B		US Treasury 4.0 August 15, 2018		**			694,340
		US TREASURY N/B		US Treasury 4.62 February 15, 2017		**			241,364
		US TREASURY N/B		US Treasury 5.38 February 15, 2031		**			131,643
		US TREASURY N/B		US Treasury 6.25 May 15, 2030		**			138,934
		US TREASURY N/B		US Treasury 6.12 November 15, 2027		**			39,568
		US TREASURY N/B		US Treasury 6.38 August 15, 2027		**			261,483
		US TREASURY N/B		US Treasury 7.25 May 15, 2016		**			773,204
		US TREASURY N/B		US Treasury 8.75 May 15, 2017		**			1,490,859
		FANNIE MAE		Federal National Mortgage Association 2.62 November 20, 2014		**			4,921,163
		FANNIE MAE		Federal National Mortgage Association 4.88 December 15, 2016		**			563,696
		FANNIE MAE		Federal National Mortgage Association 4.62 May 1, 2013		**			948,466
		FANNIE MAE		Federal National Mortgage Association 5.25 August 1, 2012		**			1,116,230
		FANNIE MAE		Federal National Mortgage Association 6.25 February 1, 2011		**			1,765,643
		FARMER MAC GTD TR 07-1		Federal Agricultural Mortgage Corporation 5.12 April 10, 2017		**			1,262,946
		FREDDIE MAC		Federal Home Loan Corporation 2.5 April 23, 2014		**			537,213
		FREDDIE MAC		Federal Home Loan Corporation 3.75 March 27, 2019		**			99,021
		FREDDIE MAC		Federal Home Loan Corporation 5.12 October 18, 2016		**			486,437
		GOLDMAN SACHS GROUP INC		Government Guaranteed 3.25 June 15, 2012		**			603,419
		TENN VALLEY AUTHORITY		Tennessee Valley Authority 5.25 September 15, 2039		**			286,799
		AFRICAN DEVELOPMENT BANK		Supranational 1.75 October 1, 2012		**			638,609
		EURASIAN DEVELOPMENT BAN		Supranational 7.38 September 29, 2014		**			105,760

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		FED REPUBLIC OF BRAZIL		Sovereign 6.0 January 17, 2017		**			470,546
		INTER-AMERICAN DEVEL BK		Supranational 1.75 October 22, 2012		**			1,293,685
		Altria Group Inc.		Corporate Bond, Par — 1,975,000 Maturity 11/10/2018, Interest 9.700%		**			2,441,430
		American Express Credit		Med Term Note Ser C 740,000		**			831,672
		Axis Capital Holdings		Corporate Bond, Par — 3,000,000 Maturity 12/01/2014, Interest 5.750%		**			3,019,770
		Bank of America Corp.		Corporate Bond, Par — 2,120,000.000 Maturity 12/01/2015, Interest 5.250%		**			2,133,250
		E.I. Dupont De Nemours		Interest — 5.250%, Par — 2,120,000.000, Maturity 12/15/2016		**			2,240,709
		EOG Resources, Inc.		Interest — 5.875%, Par — 2,180,000.000, Maturity 09/15/2017		**			2,373,944
		Home Depot		Interest — 5.400%, Par — 2,390,000, Maturity 03/01/2016		**			2,501,995
		John Deere Capital Corp.		Medium Term Note, Par — 2,345,000		**			2,461,964
		Ryder System, Inc.		Medium Term Note, Par — 1,325,000.000		**			1,392,894
		Time Warner		Corporate Bond, Par — 2,340,000 Maturity 11/15/2016, Interest 5.875%		**			2,526,049
		Wal-Mart Stores, Inc.		Corporate Bond, Maturity 02/15/2018, Interest 5.800%, Par — 2,050,000		**			2,274,994
		XTO Energy, Inc.		Corporate Bond, Maturity 12/15/2018, Interest 6.500%, Par — 2,180,000.000		**			2,491,086
		ALLSTATE LF GLB FN TRST		Corporate Bond 5.38 April 30, 2013		**			242,197
		ALTRIA GROUP INC		Corporate Bond 9.7 November 10, 2018		**			512,463
		AMER EXPRESS CREDIT CO		Corporate Bond 5.12 August 25, 2014		**			380,443
		AMERICAN EXPRESS CO		Corporate Bond 6.15 August 28, 2017		**			421,116
		ANADARKO PETROLEUM CORP		Corporate Bond 8.7 March 15, 2019		**			50,781
		ANGLO AMERICAN CAPITAL		Corporate Bond 9.38 April 8, 2019		**			206,692
		ANHEUSER-BUSCH INBEV WOR		Corporate Bond 6.88 November 15, 2019		**			174,401
		ANHEUSER-BUSCH INBEV WOR		Corporate Bond 7.75 January 15, 2019		**			108,588
		ANHEUSER-BUSCH INBEV WOR		Corporate Bond 7.2 January 15, 2014		**			227,635
		ARCELORMITTAL		Corporate Bond 9.85 June 1, 2019		**			318,895
		ARCELORMITTAL		Corporate Bond 6.12 June 1, 2018		**			207,388
		AT&T INC		Corporate Bond 6.7 November 15, 2013		**			414,935
		BAE SYSTEMS HOLDINGS INC		Corporate Bond 6.38 June 1, 2019		**			183,767
		BANK OF AMERICA CORP		Corporate Bond 6.5 August 1, 2016		**			468,752

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		BANK OF AMERICA CORP		Corporate Bond 7.38 May 15, 2014		**			1,161,300
		BANK OF AMERICA CORP		Corporate Bond 5.65 May 1, 2018		**			266,507
		BARCLAYS BANK PLC		Corporate Bond 5.0 September 22, 2016		**			134,623
		BERKLEY (WR) CORPORATION		Corporate Bond 7.38 September 15, 2019		**			384,697
		BERKSHIRE HATHAWAY FIN		Corporate Bond 4.5 January 15, 2013		**			602,476
		BRITISH TELECOM PLC		Corporate Bond 5.95 January 15, 2018		**			647,149
		CANADIAN PACIFIC RR CO		Corporate Bond 7.25 May 15, 2019		**			211,975
		CAPITAL ONE BANK USA NA		Corporate Bond 8.8 July 15, 2019		**			306,783
		CAPITAL ONE FINANCIAL CO		Corporate Bond 6.75 September 15, 2017		**			71,236
		CATERPILLAR FIN SERV CRP		Corporate Bond 5.45 April 15, 2018		**			73,716
		CBS CORP		Corporate Bond 8.88 May 15, 2019		**			223,418
		CENOVUS ENERGY INC		Corporate Bond 4.5 September 15, 2014		**			606,171
		CISCO SYSTEMS INC		Corporate Bond 4.45 January 15, 2020		**			345,248
		CITIGROUP INC		Corporate Bond 5.5 October 15, 2014		**			539,359
		CITIGROUP INC		Corporate Bond 5.5 April 11, 2013		**			409,105
		CITIGROUP INC		Corporate Bond 6.12 November 21, 2017		**			167,439
		CITIGROUP INC		Corporate Bond 6.0 August 15, 2017		**			337,354
		COMCAST CORP		Corporate Bond 6.3 November 15, 2017		**			385,793
		CREDIT SUISSE NEW YORK		Corporate Bond 5.5 May 1, 2014		**			399,444
		CREDIT SUISSE NEW YORK		Corporate Bond 5.0 May 15, 2013		**			332,575
		CREDIT SUISSE USA INC		Corporate Bond 5.5 August 16, 2011		**			129,965
		DCP MIDSTREAM LLC		Corporate Bond 9.75 March 15, 2019		**			201,466
		DIAGEO CAPITAL PLC		Corporate Bond 5.2 January 30, 2013		**			251,211
		DTE ENERGY COMPANY		Corporate Bond 7.62 May 15, 2014		**			202,698
		DUKE ENERGY CORP		Corporate Bond 5.05 September 15, 2019		**			228,132
		EQT CORP		Corporate Bond 8.12 June 1, 2019		**			209,186
		GENERAL ELECTRIC CO		Corporate Bond 5.25 December 6, 2017		**			430,715
		GOLDMAN SACHS GROUP INC		Corporate Bond 6.0 May 1, 2014		**			154,528
		GOLDMAN SACHS GROUP INC		Corporate Bond 7.5 February 15, 2019		**			250,769
		GOLDMAN SACHS GROUP INC		Corporate Bond 5.95 January 18, 2018		**			514,384

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		HSBC FINANCE CORP		Corporate Bond 5.0 June 30, 2015		**			149,786
		HUTCHISON WHAM INT 09/16		Corporate Bond 4.62 September 11, 2015		**			204,624
		IBM CORP		Corporate Bond 7.62 October 15, 2018		**			315,497
		JOHN DEERE CAPITAL CORP		Corporate Bond 4.5 April 3, 2013		**			339,481
		KINDER MORGAN ENER PART		Corporate Bond 5.85 September 15, 2012		**			388,157
		KRAFT FOODS INC		Corporate Bond 6.0 February 11, 2013		**			394,467
		KROGER CO/THE		Corporate Bond 6.15 January 15, 2020		**			192,256
		MACQUARIE GROUP LTD		Corporate Bond 7.3 August 1, 2014		**			649,273
		MERRILL LYNCH & CO		Corporate Bond 6.05 August 15, 2012		**			169,584
		MET LIFE GLOB FUNDING I		Corporate Bond 5.12 April 10, 2013		**			331,986
		MIDAMERICAN ENERGY CO		Corporate Bond 5.95 July 15, 2017		**			132,367
		MORGAN STANLEY		Corporate Bond 5.62 September 23, 2019		**			465,293
		MORGAN STANLEY		Corporate Bond 6.0 May 13, 2014		**			574,097
		MORGAN STANLEY		Corporate Bond 5.45 January 9, 2017		**			82,940
		MORGAN STANLEY		Corporate Bond 5.62 January 9, 2012		**			108,220
		MORGAN STANLEY		Corporate Bond 5.3 March 1, 2013		**			321,499
		NATIONAL RURAL UTIL COOP		Corporate Bond 10.38 November 1, 2018		**			308,745
		NEVADA POWER CO		Coroprate Bond 7.12 March 15, 2019		**			193,362
		NEW CINGULAR WIRELESS SV		Corporate Bond 8.12 May 1, 2012		**			343,042
		NEW CINGULAR WIRELESS SV		Corporate Bond 7.88 March 1, 2011		**			137,581
		NEWS AMERICA INC		Corporate Bond 6.9 March 1, 2019		**			413,915
		NORTHERN TRUST COMPANY		Corporate Bond 6.5 August 15, 2018		**			347,259
		ONEOK PARTNERS LP		Corporate Bond 5.9 April 1, 2012		**			177,342
		ORACLE CORP		Corporate Bond 5.0 July 8, 2019		**			422,129
		PACIFICORP		Corporate Bond 5.65 July 15, 2018		**			87,993
		PFIZER INC		Corporate Bond 6.2 March 15, 2019		**			485,847
		PHILIP MORRIS INTL INC		Corporate Bond 4.88 May 16, 2013		**			504,331
		PLAINS ALL AMER PIPELINE		Corporate Bond 6.5 May 1, 2018		**			140,429
		PRICOA GLOBAL FUNDING 1		Corporate Bond 5.4 October 18, 2012		**			511,447
		PRINCIPAL FINANCIAL GROUP		Corporate Bond 8.88 May 15, 2019		**			244,620

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		PRUDENTIAL FINANCIAL INC		Corporate Bond 7.38 June 15, 2019		**			253,000
		ROCHE HLDGS INC		Corporate Bond 6.0 March 1, 2019		**			190,205
		ROYAL BK OF SCOTLAND PLC		Corporate Bond 4.88 August 28, 2014		**			304,071
		ROYAL BK SCOTLND GRP PLC		Corporate Bond 6.4 October 21, 2019		**			211,939
		STANDARD CHARTERED PLC		Corporate Bond 5.5 November 18, 2014		**			558,925
		SUNCOR ENERGY INC		Corporate Bond 6.1 June 1, 2018		**			237,185
		SVENSKA HANDELSBANKEN AB		Corporate Bond 4.88 June 10, 2014		**			604,148
		TELECOM ITALIA CAPITAL		Corporate Bond 5.25 November 15, 2013		**			1,185,519
		TELEFONICA EMISIONES SAU		Corporate Bond 5.86 February 4, 2013		**			530,099
		TIME WARNER CABLE INC		Corporate Bond 7.5 April 1, 2014		**			720,121
		TRANSOCEAN INC		Corporate Bond 5.25 March 15, 2013		**			222,855
		TYCO/TYCO INTL FIN SA		Corporate Bond 7.0 December 15, 2019		**			198,255
		UBS AG STAMFORD CT		Corporate Bond 5.75 April 25, 2018		**			200,568
		UBS AG STAMFORD CT		Corporate Bond 5.88 December 20, 2017		**			519,891
		VERIZON COMMUNICATIONS		Corporate Bond 6.35 April 1, 2019		**			201,439
		VERIZON COMMUNICATIONS		Corporate Bond 5.25 April 15, 2013		**			441,067
		VERIZON COMMUNICATIONS		Corporate Bond 4.35 February 15, 2013		**			148,744
		VERIZON COMMUNICATIONS		Corporate Bond 5.35 February 15, 2011		**			201,961
		VIACOM INC		Corporate Bond 6.25 April 30, 2016		**			187,051
		VIRGINIA ELEC & POWER CO		Corporate Bond 5.1 November 30, 2012		**			309,010
		WACHOVIA CORP		Corporate Bond 5.25 August 1, 2014		**			422,854
		WAL-MART STORES INC		Corporate Bond 5.8 February 15, 2018		**			101,850
*		WELLS FARGO & COMPANY		Corporate Bond 3.75 October 1, 2014		**			513,279
		WESTPAC BANKING CORP		Corporate Bond 4.88 November 19, 2019		**			183,648
		WESTPAC BANKING CORP		Corporate Bond 4.2 Feburary 27, 2015		**			273,199
		WPP FINANCE (UK)		Corporate Bond 8.0 September 15, 2014		**			383,069
		XEROX CORPORATION		Corporate Bond 4.25 February 15, 2015		**			343,695
		XSTRATA FINANCE CANADA		Corporate Bond 5.8 November 15, 2016		**			149,693
		XTO ENERGY INC		Corporate Bond 4.62 June 15, 2013		**			591,204
		DISCOVER BANK		Corporate High Yield 8.7 November 18, 2019		**			270,557

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		LEHMAN BROS CAP TR VII		Corporate High Yield 5.86 May 31, 2012		**			33
		RASC 2002-KS4 AIIB		Asset Backed Security — Home Equity Loans 0.73 January 25, 2010		**			3,753
		RASC 2004-KS12 M1		Asset Backed Security — Home Equity Loans 0.76 January 25, 2010		**			106,855
		ARMT 2005-5 6A21		Collateralized Mortgage Obligation — Floater .46 January 25, 2010		**			74,346
		BOAMS 2004-5 3A2		Whole Loan 15 year 4.75 June 25, 2019		**			290,260
		CSFB 2004-AR8 2A1		Non Agency 5Y Hybrid ARM 3.65 September 25, 2034		**			163,784
		FG A29420		Federal Home Loan Mortgage Corporation 30 Year 6.0 April 1, 2034		**			168,385
		FG G02186		Federal Home Loan Mortgage Corporation Gold 30 Year 5.0 June 1, 2035		**			1,076,221
		FG G03150		Federal Home Loan Mortgage Corporation Gold 30 Year 5.5 February 1, 2037		**			1,571,598
		FG G03269		Federal Home Loan Mortgage Corporation Gold 30 Year 5.5 November 1, 2036		**			530,898
		FG G04222		Federal Home Loan Mortgage Corporation Gold 30 Year 5.5 January 1, 2037		**			974,224
		FG J10982		Federal Home Loan Mortgage Corporation 15 Year 4.5 September 1, 2024		**			764,546
		FGLMC 4.5 1/10		Federal Home Loan Mortgage Corporation Gold 30 Year 4.5 September 1, 2038		**			997,500
		FGLMC 5 1/10		Federal Home Loan Mortgage Corporation Gold 30 Year 5.0 February 1, 2039		**			1,537,968
		FGLMC 6 1/10		Federal Home Loan Mortgage Corporation Gold 30 Year 6.0 July 1, 2039		**			1,113,328
		FGLMC 6.5 1/10		Federal Home Loan Mortgage Corporation Gold 30 Year 6.5 July 1, 2039		**			321,094
		FH 1B3170		Federal National Mortgage Association 7Y Hybrid ARM 5.6 December 1, 2011		**			699,875
		FH 1G1999		Federal Home Loan Mortgage Corporation 7Y Hybrid ARM 5.41 July 1, 2014		**			35,641
		FH 1G2061		Federal Home Loan Mortgage Corporation 7Y Hybrid ARM 5.46 July 1, 2014		**			59,353
		FH 1J0453		Federal Home Loan Mortgage Corporation 7Y Hybrid ARM 5.54 June 1, 2014		**			30,057
		FH 1J1749		Federal Home Loan Mortgage Corporation 7Y Hybrid ARM 5.52 June 1, 2014		**			346,736
		FH 782758		Federal National Mortgage Association 7Y Hybrid ARM 5.75 November 1, 2013		**			421,844
		FHR 2475 F		Collateralized Mortgage Obligation — Floater 1.23 January 15, 2010		**			385,776
		FHR 2766 SW		Collateralized Mortgage Obligation — INV IO 6.97 January 15, 2010		**			15,378
		FHR 3036 NS		Collateralized Mortgage Obligation — INV IO 6.97 January 15, 2010		**			30,112

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		FHR 3349 MY		Collateralized Mortgage Obligation — Sequential 5.5 July 15, 2037		**			1,238,581
		FHS 237 S22		Collateralized Mortgage Obligation — INV IO 6.92 January 15, 2010		**			188,624
		FHS 237 S23		Collateralized Mortgage Obligation — INV IO 6.87 January 15, 2010		**			75,373
		FHS 240 S22		Collateralized Mortgage Obligation — INV IO 6.92 January 15, 2010		**			249,072
		FN 254766		Federal National Mortgage Association 30 Year 5.0 June 1, 2032		**			243,657
		FN 709705		Federal National Mortgage Association 30 Year 5.0 April 1, 2032		**			209,905
		FN 713985		Federal National Mortgage Association 30 Year 5.0 November 1, 2032		**			350,352
		FN 745327		Federal National Mortgage Association 30 Year 5.0 February 1, 2035		**			1,059,825
		FN 831679		Federal National Mortgage Association 30 Year 6.5 February 1, 2036		**			211,910
		FN 888890		Federal National Mortgage Association 30 Year 6.5 March 1, 2036		**			193,267
		FN 889072		Federal National Mortgage Association 30 Year 6.5 December 1, 2036		**			1,958,702
		FN 889307		Federal National Mortgage Association 30 Year 5.0 October 1, 2032		**			729,517
		FN 908854		Federal National Mortgage Association 30 Year 6.5 August 1, 2036		**			228,606
		FN 930796		Federal National Mortgage Association 30 Year 5.0 April 1, 2033		**			510,361
		FN 931636		Federal National Mortgage Association 30 Year 4.5 March 1, 2039		**			840,658
		FN 960569		Federal National Mortgage Association 30 Year 5.5 September 1, 2037		**			1,684,660
		FN 962871		Federal Naitonal Mortgage Association 15 Year 4.5 January 1, 2023		**			141,447
		FN 981359		Federal National Mortgage Association 15 Year 4.5 December 1, 2022		**			63,504
		FN AC6082		Federal National Mortgage Association 15 Year 4.5 July 1, 2024		**			510,105
		FNCI 4 1/10		Federal National Mortgage Association 15 Year 4.0 August 1. 2023		**			714,105
		FNCI 5 1/10		Federal National Mortgage Association 15 Year 5.0 January 1, 2024		**			418,000
		FNCI 5.5 1/10		Federal National Mortgage Association 15 Year 5.5 May 1, 2024		**			1,231,988
		FNCI 6 1/10		Federal National Mortgage Association 15 Year 6.0 June 1, 2024		**			341,350
		FNCL 4.5 1/10		Federal National Mortgage Association 30 Year 4.5 September 1, 2038		**			2,974,412
		FNCL 6 1/10		Federal National Mortgage Association 30 Year 6.0 July 1, 2039		**			1,276,170
		FNCL 6.5 1/10		Federal National Mortgage Association 30 Year 6.5 July 1, 2039		**			641,492
		FNR 2002-81 SJ		Collateralized Mortgage Obligation — INV IO 7.27 January 25, 2010		**			29,996
		FNW 2003-W6 1A41		Collateralized Mortgage Obligation — Sequential 5.4 October 25, 2042		**			292,266
		GN 713334		Government National Mortgage Association 30 Year 4.5 April 1, 2039		**			287,168
		GNSF 4.5 1/10		Government National Mortgage Association 30 Year 4.5 February 1, 2038		**			1,570,981

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		GNSF 5 1/10		Government National Mortgage Association 30 Year 4.0 February 1, 2039		**			740,362
		GNSF 5.5 1/10		Government National Mortgage Association 30 Year 5.5 June 1, 2039		**			1,372,225
		GNSF 6 1/10		Government National Mortgage Association 30 Year 6.0 July 1, 2039		**			950,906
		WAMU 2005-AR1 A2A1		Collateralized Mortgage Obligation — Floater .57 January 25, 2010		**			64,528
		WAMU 2005-AR15 A1A1		Collateralized Mortgage Obligation — Floater .49 January 25, 2010		**			139,418
		WAMU 2005-AR2 2A21		Collateralized Mortgage Obligation — Floater .45 January 25, 2010		**			41,851
		WFMBS 2003-2 A6		Collateralized Mortgage Obligation — PAC 5.25 February 25, 2018		**			53,367
		BANK OF SCOTLAND PLC		Covered Bond 5.25 February 21, 2017		**			459,827
		BSCMS 2004-PWR6 A4		Commercial Mortgage Backed Security 4.52 December 11, 2011		**			298,372
		GECMC 2002-1A A3		Commercial Mortgage Backed Security 6.27 April 10, 2012		**			793,050
		LBUBS 2006-C4 A4		Commercial Mortgage Backed Security 5.88 May 15, 2016		**			251,552
		MSDWC 2002-TOP7 A2		Commercial Mortgage Backed Security 5.98 May 15, 2012		**			1,401,570
		MSDWC 2003-HQ2 A2		Commercial Mortgage Backed Security 4.92 February 12, 2013		**			305,812
		Bank of America Corp. 10% Preferred		Preferred Stock		**			484,900
		3M Company		Common Stock		**			791,979
		Abbott Laboratories		Common Stock		**			1,923,664
		Accenture LTD		Common Stock		**			323,700
		Ace Limited		Common Stock		**			579,600
		Adobe Sys. Inc.		Common Stock		**			937,890
		Adtran Inc		Common Stock		**			228,883
		Advanced Micro Devices, Inc.		Common Stock		**			858,616
		Advantest Corporation JPY50		Common Stock		**			170,503
		AES Corporation		Common Stock		**			45,254
		Aetna Inc.-New		Common Stock		**			1,400,189
		AFLAC		Common Stock		**			346,875
		Agilent Technologies Inc		Common Stock		**			127,387
		Agrium, Inc.		Common Stock		**			131,046
		AK Steel Holding Corp. COM		Common Stock		**			501,725
		Akami Technologies		Common Stock		**			1,210,774
		Akzo Nobel Eur 2.0		Common Stock		**			126,487

ITT CORPORATION SALARIED INVESTMENT AND SAVINGS PLAN		EIN: 13-5158950
SCHEDULE H, PART IV, LEVEL 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)		PN: 100
AS OF DECEMBER 31, 2009

		(b) Identity of Issuer, Borrower,		(c ) Description of Investment, including Maturity Date,				(e) Current
(a)		Lesser or Similar Party		Rate of Interest, Collateral, and Par or Maturity Value		(d) Cost		Value
		Alcon Inc		Common Stock		**			854,620
		Align Technology Inc		Common Stock		**			411,642
		Allegheny Energy		Common Stock		**			100,964
		Allergan Inc		Common Stock		**			302,448
		Allscripts-Misys Healthcare Solutions, Inc.		Common Stock		**			56,644
		Allstate Corp.		Common Stock		**			129,172
		Altria Group Inc		Common Stock		**			1,073,761
		Amazon.com Inc		Common Stock		**			1,780,910
		Amdocs Limited		Common Stock		**			122,679
		American Electric Power Inc		Common Stock		**			351,379
		American Express Company		Common Stock		**			976,532
		American Medical Systems Holdings Inc		Common Stock		**			268,131
		American Tower Systems Corporation Class A		Common Stock		**			311,112
		Ameriprise Financial Inc		Common Stock		**			714,288
		Ameristar Casinos Inc		Common Stock		**			237,969
		Amgen Inc		Common Stock		**			2,400,831
		Amphenol Corp Class A		Common Stock		**			594,521
		Amylin Pharmaceuticals Inc		Common Stock		**			280,607
		Anglo American PLC USD 0.54		Common Stock		**			118,203
		Anheuser Busch Inbev SA, Bruxell NPV		Common Stock		**			348,812
		Anheuser Busch Inbev SA, Strip VVPR		Common Stock		**			9
		AOL, Inc.		Common Stock		**			142,637
		Aon Corporation		Common Stock		**			245,376
		Apache Corp.		Common Stock		**			1,836,426
		Apollo Group Inc		Common Stock		**			424,060
		Apple Inc		Common Stock		**			3,519,674
		Applied Material Inc		Common Stock		**			284,376
		Archer Daniels Midland Co.		Common Stock		**			1,214,828
		Assurant Inc		Common Stock		**			106,128
		AT&T		Common Stock		**			5,476,221