11-K
Table of Contents

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 11-K

 

 

 

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

For the year ended December 31, 2012

OR

 

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

For the transition period from                      to                     

Commission file number 1-4448

 

 

 

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

Baxter Healthcare of Puerto Rico Savings and Investment Plan

 

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

Baxter International Inc.

One Baxter Parkway

Deerfield, IL 60015

(224) 948-2000

 

 

 


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Financial Statements and Supplemental Schedule

December 31, 2012 and 2011


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Index

December 31, 2012 and 2011

 

 

     Page(s)  

Report of Independent Registered Public Accounting Firm

     1   

Financial Statements

  

Statements of Net Assets Available for Benefits as of December 31, 2012 and 2011

     2   

Statements of Changes in Net Assets Available for Benefits for the years ended December  31, 2012 and 2011

     3   

Notes to Financial Statements

     4-14   

Supplemental Information

  

Schedule H, Line 4i: Schedule of Assets (Held at End of Year) as of December 31, 2012

     16-39   


Table of Contents

Report of Independent Registered Public Accounting Firm

To the Participants and Administrative Committee of

  the Baxter Healthcare of Puerto Rico Savings and Investment Plan

Deerfield, Illinois

We have audited the accompanying statements of net assets available for benefits of the Baxter Healthcare of Puerto Rico Savings and Investment Plan (“the Plan”) as of December 31, 2012 and 2011, and the related statements of changes in net assets available for benefits for the years then ended. 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2012 and 2011, and the changes in net assets available for benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule H, Line 4i - Schedule of Assets (Held at End of Year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic 2012 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2012 financial statements taken as a whole.

 

/s/ Crowe Horwath LLP
Oak Brook, Illinois
June 26, 2013


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Statements of Net Assets Available for Benefits

December 31, 2012 and 2011 (in thousands)

 

 

     2012     2011  

Assets

    

Investments

    

Cash and cash equivalents

   $ 910      $ 1,072   

Common stock (including securities on loan of $36 in 2012 and $13 in 2011)

     9,953        8,323   

U.S. government and government agency issues (including securities on loan of $104 in 2012 and $64 in 2011)

     363        263   

Corporate and other obligations (including securities on loan of $97 in 2012 and $85 in 2011)

     517        483   

Commingled funds

     7,886        7,171   

Registered investment companies

     2,703        1,531   

Synthetic guaranteed investment contracts

     20,200        18,224   

Collateral held on loaned securities

     242        166   
  

 

 

   

 

 

 

Total investments at fair value

     42,774        37,233   
  

 

 

   

 

 

 

Receivables

    

Note receivables from participants

     3,807        3,568   

Sponsor contributions

     399        275   

Accrued interest and dividends

     58        49   

Due from brokers for securities sold

     16        —     
  

 

 

   

 

 

 

Total receivables

     4,280        3,892   
  

 

 

   

 

 

 

Total assets

     47,054        41,125   
  

 

 

   

 

 

 

Liabilities

    

Accounts payable

     362        277   

Collateral to be paid on loaned securities

     242        166   
  

 

 

   

 

 

 

Total liabilities

     604        443   
  

 

 

   

 

 

 

Net assets available for benefits, reflecting investments at fair value

     46,450        40,682   

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     (1,785     (1,480
  

 

 

   

 

 

 

Net assets available for benefits

   $ 44,665      $ 39,202   
  

 

 

   

 

 

 

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

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Statements of Changes in Net Assets Available for Benefits

For the Years Ended December 31, 2012 and 2011 (in thousands)

 

 

     2012      2011  

Additions (reductions) to net assets attributed to

     

Investment income

     

Net appreciation (depreciation) in fair value of investments

   $ 3,706       $ (524

Interest

     703         690   

Dividends

     285         227   
  

 

 

    

 

 

 

Net investment income

     4,694         393   
  

 

 

    

 

 

 

Participant loan interest

     148         160   

Contributions

     

Sponsor

     1,802         1,595   

Participant

     3,160         2,845   
  

 

 

    

 

 

 
     4,962         4,440   
  

 

 

    

 

 

 

Net additions

     9,804         4,993   
  

 

 

    

 

 

 

Deductions from net assets attributed to

     

Benefits paid

     3,951         3,215   

Plan expenses

     390         359   
  

 

 

    

 

 

 

Total deductions

     4,341         3,574   
  

 

 

    

 

 

 

Net increase

     5,463         1,419   

Net assets available for benefits

     

Beginning of year

     39,202         37,783   
  

 

 

    

 

 

 

End of year

   $ 44,665       $ 39,202   
  

 

 

    

 

 

 

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

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

1. General Description of the Plan

The following description of the Baxter Healthcare of Puerto Rico Savings and Investment Plan (the Plan) is provided for general information purposes only. Participants should refer to the Plan document and summary plan description for more complete information. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

The Plan is a defined contribution plan which became effective on January 1, 1998. The Plan was created for the purpose of providing retirement benefits to employees of Baxter Healthcare S.A. (Puerto Rico Branch), and Baxter Sales and Distribution Corporation (collectively, the Sponsor or the Company), subsidiaries of Baxter International Inc. (Baxter) and to encourage and assist employees in adopting a regular savings program by means of payroll deductions through a plan that qualifies under the applicable laws of the Commonwealth of Puerto Rico and the United States Internal Revenue Code. Plan participants may authorize the Company to make payroll deductions under the Plan ranging from 1% to 50% of their pre-tax monthly compensation in both 2012 and 2011, limited to a maximum of $13,000 and $10,000 a year in 2012 and 2011, respectively. Newly hired employees are deemed to have elected to contribute 3% of compensation unless they make a contrary election. The Company matches a participant’s savings contributions at the rate of 50 cents for each dollar of a participant’s pre-tax contribution, up to a maximum of 6% of a participant’s compensation. The Company also contributes an additional non-matching 3% of compensation for employees that are not eligible to participate in the Company’s Puerto Rico defined benefit pension plan, which includes all new employees hired on or after January 1, 2008. The Company may make additional discretionary contributions in such amounts as the Company may determine. Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Company’s matching and discretionary contributions plus actual earnings thereon is based on years of service. The contributions vest in accordance with the following vesting schedule:

 

Years of Service

   Vesting %  

1

     20

2

     40

3

     60

4

     80

5 or more

     100

Employees are fully vested in the Company’s matching contributions account, regardless of years of service with the Company, upon attaining age 65, upon becoming disabled in accordance with the provisions of the Plan or upon dying while employed by the Company. The Company’s additional non-matching contribution becomes fully vested after three years of service. Forfeitures of nonvested accounts are used to reduce future Company contributions.

Participants may borrow from their vested accounts a minimum of $500 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. The loans are secured by the balance in the participant’s account and bear interest at the prime rate at the last day of the month prior to loan request, plus one percent. These loans are reported at their unpaid principal balance plus any accrued but unpaid interest, with no allowance for credit losses, as repayments of principal and interest are received through payroll deductions and the notes are collateralized by the participant’s account balances.

Plan participants can not request withdrawals from the Plan unless they are at least 59 1/2 years old or incur a financial hardship. On termination of service due to retirement or other reasons, a participant may elect to receive either a lump sum amount equal to their entire vested account balance or installment payments. In the case of a participant termination because of death or disability, the entire vested amount is paid to the person or persons legally entitled thereto.

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

Each participant’s account is credited with the participant’s contribution and an allocation of the Company’s contributions and Plan earnings, and is charged with his or her withdrawals and an allocation of Plan-related expenses. Allocations are based on participant earnings or account balances, as defined in the Plan document. The net income of the Plan is posted to the participant’s accounts on a daily basis. Each participant directs the investment of his or her account to any of the investment options available under the Plan.

Upon enrollment in the Plan, a participant may direct contributions into any of 17 investment options: Stable Income Fund, Baxter Common Stock Fund, Composite Fund, General Equity Fund, S&P 500 Flagship Fund, International EAFE Equity Index Fund, Small Cap Fund and ten different Target Retirement Funds. However, non-matching contributions may not be invested in the Baxter Common Stock Fund. In addition, certain participants maintain shares in Edwards Lifesciences Corporation. These shares were placed into the Edwards Lifesciences Common Stock Fund in connection with Baxter’s 2000 spin-off of its cardiovascular business. Participants are not able to make contributions or transfer existing account balances to the Edwards Lifesciences Common Stock Fund, but may make transfers out of these funds at any time.

 

2. Summary of Significant Accounting Policies

Basis of Accounting

The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting. Accordingly, investment income is recognized when earned and expenses are recognized when incurred.

Valuation of Investments and Collateral

The fair value of Plan investments and collateral is determined as follows:

 

Cash and cash equivalents    These largely consist of a short-term investment fund and a money market fund, the fair value of which is based on the net asset value. The investment objectives for these funds are to provide safety for principal, daily liquidity and a competitive yield by investing in high quality instruments.
Common stock    Value based on closing prices on the valuation date in an active market on national securities exchanges.
U.S. government and government agency issues    Value based on reputable pricing vendors that typically use pricing matrices or models.
Corporate and other obligations    Value based on reputable pricing vendors that typically use pricing matrices or models.

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

Commingled funds    Value based on net asset values reported by the fund managers as of the Plan’s financial statement dates and recent transaction prices. The investment objectives of these funds are to track the performances of the S&P 500 (S&P 500 Flagship Fund); Europe, Australasia and the Far East (EAFE) (International EAFE Equity Index Fund); or Russell 2000 (Small Cap Fund) indexes. The underlying investments vary, with some holding diversified portfolios of domestic stocks and government agency bonds, and others holding collective investment funds. Each fund provides for daily redemptions by the Plan at reported net asset values per share, with no advance notice requirement. Refer to Note 6 for amounts invested in each of these funds.
Registered investment companies    Value based on the last reported sale price from a national security exchange on the valuation date.
Synthetic guaranteed investment contracts    Value based on the fair value of the underlying securities in the contract on the valuation date plus the fair value of wrapper contracts, which is calculated using a replacement cost approach. The underlying securities are valued based upon the methodologies described above. See below for more information.
Collateral held on loaned securities    Value based upon the net asset value per unit of the short-term investment funds where the collateral is invested. Refer to Note 7 for more information on the securities lending program.
Collateral to be paid on loaned securities    Value based on the fair value of the underlying securities loaned on the valuation date, plus an incremental margin.

Income Recognition

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

The financial statements reflect the net depreciation or appreciation in the fair value of the Plan’s investments. This net depreciation or appreciation consists of realized gains and losses calculated as the difference between proceeds from a sales transaction and cost determined on a moving average basis, and unrealized gains and losses calculated as the change in the fair value between beginning of the year (or purchase date if later) and the end of the year.

Synthetic Guaranteed Investment Contracts

The Plan holds synthetic guaranteed investment contracts (GICs) as part of the Stable Income Fund. The synthetic GICs provide for a fixed return on principal over a specified time through fully benefit-responsive contracts issued by Transamerica (formerly Aegon Institutional Markets) and Bank of America N.A. The portfolio of assets, overall of investment grade, underlying the synthetic GICs primarily includes cash and cash equivalents, U.S. government and government agency issues and corporate and other obligations.

 

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Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

The fair value of the synthetic GICs equals the total of the fair value of the underlying assets plus the fair value of the wrapper contracts. The fair value of the wrapper contracts is computed using a replacement cost approach that incorporates a comparison of the current fee rate on similar wrapper contracts to the fee being paid by the Plan. Using this approach, the fair value of the wrapper contracts were a loss of $26 thousand and a loss of $8 thousand at December 31, 2012 and 2011, respectively.

While Plan investments are presented at fair value in the Statement of Net Assets Available for Benefits, any material difference between the fair value of the Plan’s direct and indirect interests in fully benefit-responsive investment contracts and their contract value is presented as an adjustment line in the Statements of Net Assets Available for Benefits, because contract value is the relevant measurement attribute for that portion of the Plan’s net assets available for benefits. Contract value represents contributions, plus earnings, less participant withdrawals and administrative expenses. The wrapper contracts used by the Plan are fully benefit-responsive because the wrapper contract issuers are contractually obligated to make up any shortfall in the event that the underlying asset portfolio has been liquidated and is inadequate to cover participant withdrawals and transfers at contract value. There are currently no reserves against contract values for credit risk of the contract issuers or any other risk. The contract value for the synthetic GICs was $18.4 million and $16.7 million at December 31, 2012 and 2011, respectively.

The crediting interest rate, which is reset quarterly, can never fall below zero. The crediting rate formula smoothes the impact of interest rate changes on participant returns by amortizing any difference between market value and book value over a period of years equal to the duration of the portfolio benchmark. The average yield on the synthetic GICs was approximately 2.2% and 2.9% at December 31, 2012 and 2011, respectively. The average interest rate credited to participants on the synthetic GICs was approximately 3.4% and 3.7% for the years ended December 31, 2012 and 2011. The credit ratings for Transamerica were AA- at both December 31, 2012 and 2011, and the credit ratings for Bank of America N.A. were A at both December 31, 2012 and 2011, respectively.

Events that lead to market value withdrawals that exceed 20 percent of the contract value would limit the ability of the Plan to transact at contract value with participants. These events include restructurings, early retirement plans, divestitures, bankruptcies, or legal, tax or regulatory changes. The Plan sponsor believes that the occurrence of any such event is remote.

The wrapper providers can only terminate at a value different than contract value under an event of default (that was not remedied) such as failure to follow the terms of the contract. If a wrapper provider would like to exit the contract for another reason, the Plan can maintain the contract through an extended termination process designed to ensure continued benefit-responsive treatment for withdrawals.

Payment of Benefits and Fees

Benefits are recorded when paid. Loan origination fees associated with notes receivable from participants and the Plan’s record keeping and trustee fees are paid by the Plan and are reflected in the financial statements as Plan expenses. Investment management fees are charged to the Plan as a reduction of investment return and included in the investment income (loss) reported by the Plan. All other expenses of the Plan are paid by the Company.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and related notes to the financial statements. Changes in such estimates may affect amounts reported in future periods.

 

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Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

Other

Due from or due to brokers for securities sold or purchased, respectively, represent the net cash value of security trades initiated but not yet settled at each respective year-end.

Risks and Uncertainties

The Plan provides for various investment options which invest in any combination of registered investment companies, U.S. government and government agency issues, corporate and other obligations, common stock, commingled funds, synthetic guaranteed investment contracts and short-term investments. Investment securities are exposed to various risks, such as interest rate, market, liquidity and credit risks. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefits and the Statements of Changes in Net Assets Available for Benefits. Individual participants’ accounts bear the risk of loss resulting from fluctuations in investment values.

Investments underlying the Plan’s synthetic GICs include securities with contractual cash flows, such as asset-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities, including securities backed by subprime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate values, delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.

 

3. Eligibility Requirements

Employees become eligible to participate in the Plan as of the first day of the month following the completion of thirty days of employment. Eligible employees are those who meet the following requirements:

 

  A. Puerto Rico employees of the Puerto Rico Branch, or the Company, both subsidiaries of Baxter;

 

  B. Puerto Rico employees not covered by a collective bargaining agreement unless the agreement provides for coverage under the Plan; and

 

  C. Puerto Rico employees who are not leased employees.

 

4. Administration of the Plan

Banco Popular de Puerto Rico (the Trustee) and State Street Bank and Trust Company (the Custodian) serve as trustee and custodian, respectively, for the Plan. ING Institutional Plan Services, LLC serves as recordkeeper for the Plan.

The Administrative Committee administers the Plan. The Investment Committee has authority, responsibility and control over the management of the assets of the Plan. Members of both committees are appointed by the Board of Directors of Baxter and are employees of Baxter.

Substantially all investment manager, trustee and administrative fees incurred in the administration of the Plan were paid from the assets of the Plan.

 

5. Fair Value of Measurements

The fair value hierarchy under the accounting standard for fair value measurements consists of the following three levels:

 

   

Level 1 - Quoted prices in active markets that the Plan has the ability to access for identical assets or liabilities;

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

   

Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market; and

 

   

Level 3 - Valuations using significant inputs that are unobservable in the market and include the use of judgment by the Plan’s management about the assumptions market participants would use in pricing the asset or liability.

The following tables summarize the bases used to measure the Plan’s financial instruments and liabilities that are carried at fair value on a recurring basis.

 

           Basis of Fair Value Measurement  
(in thousands)    Balance at
December 31,
2012
   

Quoted Prices
in Active
Markets for
Identical
Assets

(Level 1)

    

Significant
Other
Observable
Inputs

(Level 2)

    

Significant
Unobservable
Inputs

(Level 3)

 

Assets

          

Cash and cash equivalents

   $ 910      $ —         $ 910       $ —     

Common stock:

          

Healthcare

     7,567        7,567         —           —     

Consumer products

     647        647         —           —     

Information technology

     727        727         —           —     

Financial services

     385        385         —           —     

Industrial services and materials

     377        377         —           —     

Energy

     179        179         —           —     

Other

     71        71         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total common stock

     9,953        9,953         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

U.S. government and government agency issues

     363        —           363         —     

Corporate and other obligations

     517        —           517         —     

Commingled funds

     7,886        —           7,886         —     

Registered investment companies:

          

Target retirement funds

     2,668        2,668         —           —     

Other

     35        35         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total registered investment companies

     2,703        2,703         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Synthetic guaranteed investment contracts:

          

Corporate and other obligations

     11,489        —           11,489         —     

U.S. government and government agency issues

     7,640        —           7,640         —     

Cash and cash equivalents

     1,097        —           1,097         —     

Wrapper contracts

     (26     —           —           (26
  

 

 

   

 

 

    

 

 

    

 

 

 

Total synthetic guaranteed investment contracts

     20,200        —           20,226         (26
  

 

 

   

 

 

    

 

 

    

 

 

 

Collateral held on loaned securities

     242        —           242         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total assets

   $ 42,774      $ 12,656       $ 30,144       $ (26
  

 

 

   

 

 

    

 

 

    

 

 

 

Liability

          

Collateral to be paid on loaned securities

   $ 242      $ 37       $ 205       $ —     
  

 

 

   

 

 

    

 

 

    

 

 

 

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

           Basis of Fair Value Measurement  
(in thousands)    Balance at
December 31,
2011
   

Quoted Prices
in Active
Markets for
Identical
Assets

(Level 1)

    

Significant
Other
Observable
Inputs

(Level 2)

    

Significant
Unobservable
Inputs

(Level 3)

 

Assets

          

Cash and cash equivalents

   $ 1,072      $ —         $ 1,072       $  —     

Common stock:

          

Healthcare

     4,498        4,498         —           —     

Consumer products

     1,246        1,246         —           —     

Information technology

     1,070        1,070         —           —     

Financial services

     487        487         —           —     

Industrial services and materials

     460        460         —           —     

Energy

     370        370         —           —     

Other

     192        192         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total common stock

     8,323        8,323         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

U.S. government and government agency issues

     263        —           263         —     

Corporate and other obligations

     483        —           483         —     

Commingled funds

     7,171        —           7,171         —     

Registered investment companies:

          —           —     

Target retirement funds

     1,501        1,501         —           —     

Other

     30        30         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total registered investment companies

     1,531        1,531         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Synthetic guaranteed investment contracts:

          

Corporate and other obligations

     6,309        —           6,309         —     

U.S. government and government agency issues

     11,351        —           11,351         —     

Cash and cash equivalents

     572        —           572         —     

Wrapper contracts

     (8     —           —           (8
  

 

 

   

 

 

    

 

 

    

 

 

 

Total synthetic guaranteed investment contracts

     18,224        —           18,232         (8
  

 

 

   

 

 

    

 

 

    

 

 

 

Collateral held on loaned securities

     166        —           166         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total assets

   $ 37,233      $ 9,854       $ 27,387       $ (8
  

 

 

   

 

 

    

 

 

    

 

 

 

Liability

          

Collateral to be paid on loaned securities

   $ 166      $ 14       $ 152       $ —     
  

 

 

   

 

 

    

 

 

    

 

 

 

There were no transfers from Level 1 to Level 2 investments in 2012 or 2011.

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

The following table sets forth a summary of changes in the fair values of the Plan’s level 3 financial instruments.

 

(in thousands)    Wrapper
Contracts
 

Balance at December 31, 2010

   $ 38   

Unrealized losses (relating to assets held at end of year)

     (46
  

 

 

 

Balance at December 31, 2011

     (8
  

 

 

 

Unrealized losses (relating to assets held at end of year)

     (18
  

 

 

 

Balance at December 31, 2012

   $ (26
  

 

 

 

The unrealized losses from the wrapper contracts are excluded from the net appreciation (depreciation) reported for the Plan, but are instead reflected in the change in adjustment from fair value to contract value for fully benefit responsive contracts reported on the statements of net assets available for benefits.

See Valuation of Investments and Collateral in Note 2 above for a discussion of the methodologies used to determine the fair values of the Plan’s investments and collateral. These methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

 

6. Investments

Investments representing five percent or more of the Plan’s net assets available for benefits at December 31, 2012 and 2011 are summarized as follows:

 

(values in thousands, except per share)    2012      2011  

Baxter common stock, 104,186 shares and 115,534 shares at December 31, 2012 and 2011, respectively

   $ 6,945       $ 5,717   

State Street Global Advisors (SSgA) S&P 500 Flagship Fund

     4,414         4,005   

 

11


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Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

Investments as of December 31, 2012 and 2011 are segregated into various investment fund options as follows:

 

     2012     2011  

(in thousands)

    

Cash (available for investment)

   $ 129      $ 150   

Stable Income Fund

     20,874        18,995   

Baxter Common Stock Fund

     6,993        5,775   

Composite Fund

     1,984        1,693   

General Equity Fund

     1,908        1,703   

SSgA S&P 500 Flagship Fund

     4,414        4,008   

SSgA International EAFE Equity Index Fund

     1,841        1,712   

Edwards Lifesciences Common Stock Fund

     90        74   

SSgA Small Cap Fund

     1,631        1,457   

Target Retirement Funds

     2,668        1,500   

Collateral held on loaned securities

     242        166   
  

 

 

   

 

 

 

Total investments at fair value

     42,774        37,233   

Adjustment from fair value to contract value for Stable Income Fund

     (1,785     (1,480
  

 

 

   

 

 

 

Total investments

   $ 40,989      $ 35,753   
  

 

 

   

 

 

 

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

 

     2012      2011  

(in thousands)

     

Baxter common stock

   $ 1,916       $ (128

Other common stock

     397         (214

U.S. government and government agency issues

     —           2   

Corporate and other obligations

     43         30   

Commingled funds

     1,157         (185

Registered investment companies

     193         (51

Collateral held on loaned securities

     —           22   
  

 

 

    

 

 

 
   $ 3,706       $ (524
  

 

 

    

 

 

 

 

7. Securities Lending Transactions

The Plan participates in a securities lending program with the Custodian. The program allows the Custodian to loan securities, which are assets of the Plan, to approved brokers (the Borrowers).

The Custodian requires the Borrowers, pursuant to a security loan agreement, to deliver collateral to secure each loan in an amount that is at least equal to the fair value of the securities loaned. The Plan bears the risk of loss with respect to any unfavorable change in fair value of the invested cash collateral. However, the Borrower bears the risk of loss related to the decrease in the fair value of the non-cash collateral and, therefore, would have to deliver additional securities to maintain the required collateral. In the event of default by the Borrower, the Custodian shall indemnify the Plan by purchasing replacement securities equal to the number of unreturned loaned securities, or, if replacement securities are not able to be purchased, the Custodian shall credit the Plan for the market value of the unreturned securities. In each case, the Custodian would apply the proceeds from the collateral for such a loan to make the Plan whole.

The fair value of the investment of cash collateral received pursuant to securities lending transactions is reflected on the Statements of Net Assets Available for Benefits as an asset and the obligation to return the amount received is reflected as a liability.

 

12


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Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

As of December 31, 2010, the Plan had securities on loan with a fair value of $5.2 million, with cash collateral received of $5.3 million, which was reflected at its fair value of $5.2 million. During 2010, $4.9 million was redeemed from the State Street Quality D Short-Term Investment Fund and held in a separate fund (Baxter International Savings Trust Separate Account) for liquidation due to an agreement between the Plan and the Trustee to terminate the securities lending program for the securities within the Stable Income Fund. As a result of the liquidation of this fund in 2011, a realized gain of $22 thousand is reflected in the 2011 Statement of Changes in Net Assets Available for Benefits. As of December 31, 2012 and 2011, the Plan had securities on loan with a fair market of $238 thousand and $162 thousand, respectively, with cash collateral received of $242 thousand and $166 thousand, respectively, which was invested in the State Street Quality D Short-Term Investment Fund. Investments underlying this fund primarily consisted of cash and cash equivalents and asset-backed securities as of both December 31, 2012 and 2011, and the net asset value of this fund was approximately $1.00 per unit. As of December 31, 2012 and 2011 the cash collateral received is reflected at its fair value of $242 thousand and $166 thousand in the 2012 and 2011 Statements of Net Assets Available for Benefits, respectively.

The Plan did not receive any non-cash collateral for securities on loan at December 31, 2012. Non-cash collateral of $24 thousand received for securities on loan at December 31, 2011, consisted of U.S. government and government agency issues held by the Custodian on behalf of the Plan. Non-cash collateral is not included with the collateral balance on the 2011 Statement of Net Assets Available for Benefits because it may not be sold or repledged. A portion of the income generated upon investment of cash collateral is remitted to the Borrowers, and the remainder is allocated between the Plan and the Custodian in its capacity as a security agent. Securities lending income allocated to the Plan amounted to $577 and $688 for 2012 and 2011, respectively. Securities lending income is classified as interest income in the Statements of Changes in Net Assets Available for Benefits.

 

8. Plan Termination

Although it has not expressed any intent to do so, the Plan sponsor has the right under the Plan to reduce, suspend or discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event the Plan terminates, the interest of each participating employee in the Plan shall become fully vested and such termination of the Plan would not reduce the interest of any participating employee or their beneficiaries accrued under the Plan up to the date of such termination.

 

9. Tax Status of the Plan

As of August 13, 2012, the Puerto Rico Treasury Department has determined and informed the Plan sponsor that the Plan and the related trust are designed in accordance with applicable sections entitling exemption from income taxes. The Plan sponsor has also obtained a favorable determination letter dated October 22, 2011, from the Internal Revenue Service (IRS) stating that the Plan is in compliance with IRS regulations.

 

10. Related Parties

Parties-in-interest are defined under Department of Labor regulations as any fiduciary of the Plan, any party rendering service to the Plan, the employer, and certain others.

At December 31, 2012 and 2011, the Plan held units of participation in certain shares of common stock of State Street Corporation, commingled funds and short-term investment funds of State Street Bank and Trust Company, the Plan’s Custodian; shares of common stock and bonds of Baxter, the Plan sponsor’s parent; loans with participants; units of registered investment companies managed by Pacific Investment Management Company, an investment manager for the Plan; shares of common stock, bonds, and interest rate wrapper contracts of Bank of America, issuer of the Plan’s fully benefit-responsive contracts; and interest rate wrapper

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

 

 

contracts of Transamerica, issuer of the Plan’s fully benefit-responsive contracts. These transactions are allowable party-in-interest transactions under ERISA and the regulations promulgated thereunder. Fees paid by the Plan for investment management, recordkeeping and consulting services, also qualify as party-in-interest transactions and are included in Plan expenses in the accompanying financial statements. The Company pays certain expenses for the administration of the Plan. These transactions are exempt from the party-in interest transaction prohibitions of ERISA.

 

14


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SUPPLEMENTAL SCHEDULE


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Cash and Cash Equivalents:         

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —         $ 910,239   
  

United States Dollar

   Cash      —           159   
           

 

 

 
  

Cash and cash equivalents

        —         $ 910,398   
           

 

 

 

**

   Common Stock:         
  

Abbott Laboratories

   Common Stock      —           16,437   
  

ACE Ltd

   Common Stock      —           14,941   
  

Adobe Systems

   Common Stock      —           11,939   
  

AES Corp

   Common Stock      —           13,132   
  

Agilent Technologies

   Common Stock      —           9,425   
  

Alexion Pharmaceuticals

   Common Stock      —           26,145   
  

Allergan Inc.

   Common Stock      —           26,466   
  

Amazon.com Inc.

   Common Stock      —           49,929   
  

American International Group

   Common Stock      —           15,340   
  

American Tower Corp

   Common Stock      —           38,236   
  

Analog Devices

   Common Stock      —           2,581   
  

AON PLC

   Common Stock      —           13,996   
  

Apple Inc.

   Common Stock      —           98,135   
  

Applied Materials Inc.

   Common Stock      —           9,141   
  

ARM Holdings Plc

   Common Stock      —           17,163   
  

Avago Technologies

   Common Stock      —           14,599   
  

Baidu Inc.

   Common Stock      —           16,347   

*

  

Bank of America Corp

   Common Stock      —           14,905   
  

Barrick Gold

   Common Stock      —           13,680   

*

  

Baxter International Inc.

   Common Stock      —           6,945,039   
  

BB&T Corp

   Common Stock      —           12,432   
  

BCE Inc.

   Common Stock      —           14,143   
  

Biogen

   Common Stock      —           25,675   
  

Blackrock Inc.

   Common Stock      —           12,167   
  

Boeing Co

   Common Stock      —           25,399   
  

Borgwarner Inc.

   Common Stock      —           9,172   
  

BP PLC

   Common Stock      —           10,690   
  

Bristol Myers Squibb

   Common Stock      —           21,646   
  

Bunge Ltd

   Common Stock      —           13,382   
  

Burberry Group

   Common Stock      —           6,453   
  

Canadian Pacific Railway

   Common Stock      —           3,194   
  

Capital One

   Common Stock      —           15,671   
  

Capital One Financial Corp

   Common Stock      —           20,894   
  

Cardinal Health Inc.

   Common Stock      —           12,893   
  

Cardinal Health Inc.

   Common Stock      —           —     
  

Charles Schwab Corp

   Common Stock      —           14,351   
  

Chipotle Mexican Grill Inc.

   Common Stock      —           21,260   
  

Cisco Systems

   Common Stock      —           23,477   
  

Citigroup Inc.

   Common Stock      —           26,753   
  

Citigroup Inc.

   Common Stock      —           14,813   

 

16


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  Coach Inc.    Common Stock      —           22,699   
  Coca Cola Co    Common Stock      —           5,289   
  Comcast Corp    Common Stock      —           13,248   
  Concho Resources    Common Stock      —           21,554   
  Costco Wholesale Corp    Common Stock      —           37,658   
  Covidien Plc    Common Stock      —           14,824   
  Crown Castle Intl    Common Stock      —           19,825   
  Cummins Inc.    Common Stock      —           12,959   
  CVS Caremark Corp    Common Stock      —           13,685   
  Devon Energy Corp    Common Stock      —           13,230   
  Du Pont    Common Stock      —           13,516   
  Dunkin Brands Group    Common Stock      —           18,744   
  Ebay Inc.    Common Stock      —           19,400   
  Edwards Lifesciences Corp    Common Stock      —           89,110   
  EMC Corp    Common Stock      —           36,078   
  Encana Corp    Common Stock      —           9,342   
  EOG Resources Inc.    Common Stock      —           15,625   
  Estee Lauder Companies    Common Stock      —           28,291   
  Express Scripts Inc.    Common Stock      —           27,862   
  Exxon Mobil Corp    Common Stock      —           25,309   
  Facebook Inc.    Common Stock      —           19,579   
  Family Dollar Stores Inc.    Common Stock      —           9,426   
  Flextronics Ltd    Common Stock      —           13,734   
  Ford Motor Co    Common Stock      —           7,995   
  General Electric Co    Common Stock      —           13,748   
  General Electric Co    Common Stock      —           22,331   
  Gilead Sciences    Common Stock      —           6,439   
  Gilead Sciences    Common Stock      —           20,256   
  Goldman Sachs Group Inc.    Common Stock      —           27,630   
  Google Inc.    Common Stock      —           14,658   
  Google Inc.    Common Stock      —           63,830   
  Halliburton Co    Common Stock      —           14,749   
  Honeywell International Inc.    Common Stock      —           26,429   
  IBM    Common Stock      —           31,529   
  Illumina Inc.    Common Stock      —           3,494   
  Inditex Unspon    Common Stock      —           38,529   
  Intuit    Common Stock      —           17,366   
  Invesco Ltd    Common Stock      —           14,213   
  Johnson & Johnson    Common Stock      —           25,591   
  Johnson Controls Inc.    Common Stock      —           17,570   
  JP Morgan Chase & Co    Common Stock      —           23,376   
  Kansas City Southern    Common Stock      —           8,900   
  Life Technologies Corp    Common Stock      —           13,707   
  Linkedin Corp    Common Stock      —           26,732   
  Lowes    Common Stock      —           4,760   
  Lowes    Common Stock      —           10,365   
  Lululemon Athletica    Common Stock      —           22,427   
  Marathon Oil Corp    Common Stock      —           13,113   
  Marsh & Mclennan Cos    Common Stock      —           12,864   

 

17


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Mastercard Inc.    Common Stock      —           59,606   
   McDonalds Corp    Common Stock      —           11,489   
   McKesson Corp    Common Stock      —           17,243   
   Metlife Inc.    Common Stock      —           5,837   
   Microsoft Corp    Common Stock      —           8,653   
   Microsoft Corp    Common Stock      —           14,428   
   Mondelez International    Common Stock      —           16,692   
   Monsanto Co    Common Stock      —           19,795   
   Monsanto Co    Common Stock      —           38,929   
   Morgan Stanley    Common Stock      —           19,111   
   Mosaic Co    Common Stock      —           709   
   National Oilwell    Common Stock      —           7,832   
   Newmont Mining    Common Stock      —           6,572   
   Nike Inc.    Common Stock      —           37,814   
   Novartis AG    Common Stock      —           14,111   
   Novartis AG    Common Stock      —           24,852   
   Novo Nordisk    Common Stock      —           28,542   
   Occidental Petroleum Corp    Common Stock      —           9,690   
   Owens Illinois Inc.    Common Stock      —           7,778   
   Owens Illinois Inc.    Common Stock      —           10,682   
   Panera Bread Co    Common Stock      —           8,834   
   Perrigo Co    Common Stock      —           12,764   
   Pfizer Inc.    Common Stock      —           12,941   
   Pfizer Inc.    Common Stock      —           30,514   
   Precision Castparts Corp    Common Stock      —           45,935   
   Priceline.com Inc.    Common Stock      —           24,475   
   Procter & Gamble Co    Common Stock      —           11,308   
   Qualcomm Inc.    Common Stock      —           15,420   
   Rackspace Hosting    Common Stock      —           15,863   
   Ralph Lauren Corp    Common Stock      —           27,329   
   Red Hat Inc.    Common Stock      —           23,951   
   Republic Service Enterprise    Common Stock      —           11,864   
   Roper Industries    Common Stock      —           12,011   
   Salesforce.com Inc.    Common Stock      —           32,610   
   Sanofi    Common Stock      —           14,300   
   Schlumberger Ltd    Common Stock      —           16,544   
   Shire Plc    Common Stock      —           30,656   
   Southwest Airlines Co    Common Stock      —           12,350   
   Southwestern Energy Co    Common Stock      —           10,690   
   Splunk Inc.    Common Stock      —           8,098   
   Stanley Black & Decker    Common Stock      —           12,460   

*

   State Street Corp    Common Stock      —           15,660   
   Sysco Corp    Common Stock      —           7,692   
   Tencent Holdings Ltd    Common Stock      —           8,836   
   Teradata Corp    Common Stock      —           8,519   
   Texas Instruments Inc.    Common Stock      —           15,499   
   Texas Instruments Inc.    Common Stock      —           27,821   
   Thermo Fisher Scientific    Common Stock      —           11,582   
   Time Warner Inc.    Common Stock      —           10,662   

 

18


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  Time Warner Inc.    Common Stock      —           33,454   
  TJX Companies    Common Stock      —           31,384   
  Union Pacific Corp    Common Stock      —           28,923   
  United Technologies Corp    Common Stock      —           27,050   
  UnitedHealth Group    Common Stock      —           14,333   
  UnitedHealth Group    Common Stock      —           17,086   
  UnitedHealth Group    Common Stock      —           19,325   
  Vertex Pharmaceuticals Inc.    Common Stock      —           22,714   
  Viacom Inc.    Common Stock      —           22,325   
  Visa Inc.    Common Stock      —           28,985   
  VMWare Inc.    Common Stock      —           27,405   
  Vodafone Inc.    Common Stock      —           24,054   
  Walt Disney    Common Stock      —           22,780   
  Weatherford Int Ltd    Common Stock      —           10,777   
  WellPoint Inc.    Common Stock      —           11,291   
  Wells Fargo & Co    Common Stock      —           13,462   
  Whole Foods Mkt Inc.    Common Stock      —           30,222   
  Workday Inc.    Common Stock      —           5,587   
  Youku.com Inc.    Common Stock      —           3,289   
  Yum! Brands Inc.    Common Stock      —           25,780   
          

 

 

 
 

Common Stock

        —         $ 9,953,408   
          

 

 

 

**

 

U.S. Government and Government Agency Issues:

     
  Bonos Y Oblig Del Estado    5.85% 31 Jan 2022      —           5,043   
  Bonos Y Oblig Del Estado    5.5% 30 Apr 2021      —           8,372   
  Fannie Mae    6.625% 15 Nov 2030      —           17,074   
  Fed HM LN Pool A58677    5.5% 01 Mar 2037      —           4,805   
  Fed HM LN Pool C09004    3.5% 01 Jul 2042      —           12,555   
  Fed HM LN Pool C48827    6.0% 01 Mar 2031      —           124   
  Fed HM LN Pool C91370    4.5% 01 May 2031      —           5,451   
  Fed HM LN Pool G12334    5.0% 01 Sep 2021      —           1,676   
  FNMA Pool 256398    6.0% 01 Sep 2021      —           357   
  FNMA Pool 581043    6.0% 01 May 2016      —           151   
  FNMA Pool 615005    6.0% 01 Dec 2016      —           212   
  FNMA Pool 694448    5.5% 01 Apr 2033      —           3,041   
  FNMA Pool 725690    6.0% 01 Aug 2034      —           2,293   
  FNMA Pool 748115    6.0% 01 Oct 2033      —           946   
  FNMA Pool 815316    5.5% 01 May 2035      —           3,904   
  FNMA Pool 822979    5.5% 01 Apr 2035      —           3,550   
  FNMA Pool 885504    6.0% 01 Jun 2021      —           1,646   
  FNMA Pool 902793    6.5% 01 Nov 2036      —           1,686   
  FNMA Pool AB5236    3.0% 01 May 2027      —           5,790   
  FNMA Pool AH3765    4.0% 01 Jan 2041      —           14,496   
  FNMA Pool AH3979    4.0% 01 Feb 20041      —           5,160   
  FNMA Pool AH4008    4.0% 01 Mar 2041      —           6,710   
  FNMA Pool AH9374    4.5% 01 Apr 2041      —           6,776   
  FNMA Pool AK9780    3.5% 01 May 2042      —           642   

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   FNMA Pool AL0920    5.0% 01 Jul 2037      —           6,713   
   FNMA Pool AO3466    3.0% 01 Jun 2027      —           6,556   
   FNMA Pool AO3540    3.0% 01 Jun 2042      —           2,654   
   FNMA Pool AO4136    3.5% 01 Jun 2042      —           255   
   FNMA Pool AO5515    3.5% 01 Jul 2042      —           716   
   FNMA Pool AO8494    2.5% 01 Jun 2027      —           10,560   
   FNMA Pool AP6604    3.0% 01 Sep 2042      —           10,501   
   FNMA Pool MA0734    4.5% 01 May 2031      —           5,337   
   FNMA Pool MA0918    4.0% 01 Dec 2041      —           14,055   
   Mexico Bonds    8.0% 17 Dec 2015      —           1,480   
   Mexico Bonds    6.25% 16 Jun 2016      —           24,857   
   Republic of Philippines    3.9% 26 Nov 2022      —           3,193   
   Tennessee Valley Authority    3.5% 15 Dec 2042      —           6,420   
   United Mexican States    6.05% 11 Jan 2040      —           6,794   
   US Treasury N/B    1.625% 15 Aug 2022      —           1,070   
   US Treasury N/B    2.75% 15 Aug 2042      —           1,101   
   US Treasury N/B    1.75% 15 May 2022      —           7,667   
   US Treasury N/B    0.5% 15 Nov 2013      —           8,574   
   US Treasury N/B    1.0% 30 Jun 2019      —           17,366   
   US Treasury N/B    0.625% 30 Apr 2013      —           17,385   
   US Treasury N/B    3.0% 15 May 2042      —           36,135   
   US Treasury N/B    1.875% 31 Aug 2017      —           61,144   
           

 

 

 
  

U.S. Government and Government Agency Issues

     —         $ 362,993   
           

 

 

 

**

   Corporate and Other Obligations:         
   Albertson’s Inc.    6.625% 01 Jun 2028      —           169   
   Alcoa Inc.    5.87% 23 Feb 2022      —           4,441   
   Ally Financial Inc.    5.5% 15 Feb 2017      —           1,829   
   Ally Financial Inc.    6.25% 01 Dec 2017      —           4,839   
   American Tower Corp    4.625% 01 Apr 2015      —           1,939   
   American Tower Corp    4.5% 15 Jan 2018      —           2,916   
   Amphenol Corp    4.75% 15 Nov 2014      —           4,319   
   Anadarko Petroleum    6.375% 15 Sep 2017      —           5,599   
   ArcelorMittal    7.25% 01 Mar 2041      —           4,406   
   Associates Corp    6.95% 01 Nov 2018      —           2,289   
   Banco Santander    3.875% 20 Sep 2022      —           2,597   
   Banco Santander Brazil    4.625% 13 Mar 2017      —           5,358   

*

   Bank of America    5.0% 13 May 2021      —           1,952   

*

   Bank of America    5.625% 01 Jul 2020      —           5,933   

*

   Bank of America Coml Mtg    1.0% 10 Apr 2049      —           2,222   
   Bear Stearns Coml Mtg    1.0% 11 Jun 2040      —           2,626   
   Braskem America Finance    7.125% 22 Jul 2041      —           4,400   
   Brocade Communications    6.875% 51 Jan 2020      —           614   
   Brocade Communications    6.625% 15 Jan 2018      —           1,831   
   Bunge Limited Finance    4.1% 15 Mar 2016      —           1,021   
   Cablevision Systems    8.0% 15 Apr 2020      —           3,709   

 

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Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  CCO Hldgs LLC    6.5% 30 Apr 2021      —           1,435   
  Celulosa Arauco    5.0% 21 Jan 2021      —           3,031   
  China Resources    4.5% 05 Apr 2022      —           2,787   
  Cielo SA    3.75% 16 Nov 2022      —           5,001   
  CitiGroup Inc.    4.45% 10 Jan 2017      —           4,561   
  Citigroup/Deutsche Bank    5.322% 11 Dec 2049      —           6,684   
  CNPC General Capital    3.95% 19 Apr 2022      —           2,739   
  Comcast Corp    5.65% 15 Jun 2035      —           1,353   
  Commercial Mortgage Passthru    1.0% 10 Dec 2049      —           753   
  Continental Airlines    5.983% 19 Oct 2023      —           3,786   
  Contl Airlines    4.0% 29 Apr 2026      —           2,267   
  Cox Communications    5.45% 15 Dec 2014      —           414   
  Credit Suisse Coml Mtg    1.0% 15 Jan 2049      —           4,608   
  Crown Castle Towers LLC    3.214% 15 Aug 2035      —           1,321   
  DelHaize Group    4.125% 10 Apr 2019      —           4,577   
  Deluxe Group    6.0% 15 Nov 2020      —           6,852   
  Dolphin Energy Ltd    5.5% 15 Dec 2021      —           2,955   
  Dun & Bradstreet    3.25% 01 Dec 2017      —           1,792   
  Embarq Corp    7.995% 01 Jun 2036      —           8,815   
  Energy Transfer Partners    5.2% 01 Feb 2022      —           1,228   
  Energy Transfer Partners    6.05% 01 Jun 2041      —           6,197   
  Enersis SA    7.375% 15 Jan 2014      —           2,069   
  Equifax Inc.    7.0% 01 Jul 2037      —           3,113   
  ERAC USA Fin Co    6.375% 15 Oct 2017      —           2,222   
  FIServ Inc.    3.5% 01 Oct 2022      —           3,740   
  FMC Technologies    3.45% 01 Oct 2022      —           1,616   
  Ford Motor Company    7.45% 16 Jul 2031      —           3,861   
  Ford Motor Credit    7.0% 01 Oct 2013      —           1,787   
  Ford Motor Credit    5.75% 01 Feb 2021      —           4,375   
  Ford Motor Credit    5.0% 15 May 2018      —           5,451   
  Frontier Communications    8.5% 15 Apr 2020      —           3,423   
  Frontier Communications    7.875% 15 Jan 2027      —           3,729   
  GE Equipment Midticket    0.6% 23 May 2016      —           8,179   
  General Elec Cap Corp    2.95% 09 May 2016      —           2,535   
  General Elec Cap Corp    5.3% 11 Feb 2021      —           4,411   
  General Elec Cap Corp    3.75% 14 Nov 2014      —           5,677   
  General Motors    6.75% 01 Jun 2018      —           3,415   
  Georgia Pacific LLC    8.875% 15 May 2031      —           95   
  Georgia Pacific LLC    7.375% 01 Dec 2025      —           2,244   
  Georgia Pacific LLC    7.75% 15 Nov 2029      —           3,205   
  Georgia Pacific LLC    7.25% 01 Jun 2028      —           4,229   
  Goldman Sachs    5.25% 27 Jul 2021      —           3,394   
  Goldman Sachs    6.15% 01 Apr 2018      —           3,720   
  Greenwich Capital Commercial    5.736% 10 Dec 2049      —           1,792   
  GS Mortgage Securities    1.0% 10 Aug 2045      —           6,718   
  Hana Bank    4.25% 14 Jun 2017      —           3,514   
  HCA Inc.    7.5% 15 Feb 2022      —           5,439   
  Hutch Whampoa Ltd    4.625% 13 Jan 2022      —           6,641   
  Hyundai Capital Services    3.5% 13 Sep 2017      —           2,675   

 

21


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  Intl Lease Finance Corp    6.25% 15 May 2019      —           8,904   
  Ipalco Enterprises Inc.    5.0% 01 May 2018      —           464   
  IPIC GMTN Ltd    6.875% 01 Nov 2041      —           4,599   
  JPMorgan Chase & Co    4.25% 15 Oct 2020      —           634   
  JPMorgan Chase & Co    4.625% 10 May 2021      —           1,011   
  JPMorgan Chase & Co    3.7% 20 Jan 2015      —           1,734   
  JPMorgan Chase & Co    4.5% 24 Jan 2022      —           3,511   
  Kia Motors Corporation    3.625% 14 Jun 2016      —           2,656   
  Kinder Morgan    6.0% 15 Jan 2018      —           3,899   
  Korea Development Bank    4.0% 09 Sep 2016      —           4,383   
  Korea National Oil    3.125% 03 Apr 2017      —           5,715   
  Lotte Shopping Co    3.375% 09 May 2017      —           8,804   
  Merrill Lynch & Co Inc.    6.4% 28 Aug 2017      —           2,678   
  Methanex Corp    3.25% 15 Dec 2019      —           1,593   
  Methanex Corp    5.25% 01 Mar 2022      —           3,583   
  Mexichem SAB De CV    6.75% 19 Sep 2042      —           3,128   
  ML CFC Coml Mtg    1.0% 12 Mar 2051      —           1,315   
  Morgan Stanley    5.375% 15 Oct 2015      —           895   
  Morgan Stanley    5.5% 26 Jan 2020      —           2,345   
  Morgan Stanley    5.55% 27 Apr 2017      —           3,511   
  Morgan Stanley    5.5% 24 Jul 2020      —           4,133   
  Mortgage Stanley Capital I    5.569% 15 Dec 2044      —           8,802   
  Mortgage Stanley Capital I    1.0% 12 Apr 2049      —           9,085   
  Myriad Int Holding    6.375% 28 Jul 2017      —           1,857   
  Nabors Industries    6.15% 15 Feb 2018      —           223   
  Nabors Industries    9.25% 15 Feb 2019      —           5,125   
  NewField Exploration Co    5.75% 30 Jan 2022      —           3,066   
  Nextera Energy Capital    4.5% 01 Jun 2021      —           4,293   
  Oil States Intl    5.125% 15 Jan 2023      —           1,669   
  Olin Corp    5.5% 15 Aug 2022      —           990   
  OshKosh Corp    8.5% 01 Mar 2020      —           2,175   
  Parker Drilling Co    9.125% 01 Apr 2018      —           1,217   
  Perkinelmer Inc.    5.0% 15 Nov 2021      —           3,090   
  Petrobras Intl Fin    6.75% 27 Jan 2041      —           4,575   
  Phillips 66    4.3% 01 Apr 2022      —           2,265   
  PKO FIN AB    4.63% 26 Sep 2022      —           3,200   
  Plains Exploration    6.875% 15 Feb 2023      —           4,559   
  Post Holdings Inc.    7.375% 15 Feb 2022      —           3,192   
  Qtel International    7.875% 10 Jun 2019      —           4,564   
  Reynolds American Inc.    7.25% 15 Jun 2037      —           6,977   
  Rock Tenn Co    4.0% 01 Mar 2023      —           1,737   
  Roman Companies    5.0% 01 Sep 2017      —           3,377   
  RPM International Inc.    6.125% 15 Oct 2019      —           3,372   
  RR Donnelley & Sons    8.25% 15 Mar 2019      —           962   
  RR Donnelley & Sons    7.25% 15 May 2018      —           1,222   
  Santader Drive Auto    2.7% 15 Aug 2018      —           1,505   
  Santader Drive Auto    1.94% 15 Mar 2018      —           1,836   
  Santader Drive Auto    1.94% 15 Dec 2016      —           6,220   
  Sealed Air Corp    6.5% 01 Dec 2020      —           1,231   

 

22


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  Sidewinder Drilling Inc.    9.75% 15 Nov 2019      —           1,400   
  SK Telecom Co    2.125% 01 May 2018      —           2,547   
  SK Telecom Co    6.625% 20 Jul 2027      —           3,268   
  SLM Corp    6.25% 25 Jan 2016      —           12,261   
  SM Energy Co    6.5% 01 Jan 2023      —           2,236   
  Sprint Capital Corp    6.875% 15 Nov 2028      —           6,456   
  Telefonica Emisiones    5.462% 16 Feb 2021      —           135   
  Telefonica Emisiones    5.134% 27 Apr 2020      —           1,998   
  Telefonica Emisiones    3.992% 16 Feb 2016      —           2,504   
  Telemar Norte Leste SA    5.5% 23 Oct 2020      —           3,491   
  Tencent Holdings Ltd    4.625% 12 Dec 2016      —           4,501   
  Time Warner Cable Inc.    5.85% 01 May 2017      —           1,347   
  Time Warner Cable Inc.    6.55% 01 May 2037      —           2,351   
  Time Warner Cable Inc.    4.125% 15 Feb 2021      —           3,052   
  Toyota Motor Credit Corp    1.75% 22 May 2017      —           10,962   
  Transalta Corp    4.75% 15 Jan 2015      —           3,423   
  Transocean Inc.    6.5% 15 Nov 2020      —           6,904   
  US Steel Corp    7.375% 01 Apr 2020      —           1,826   
  USG Corp    9.75% 15 Jan 2018      —           2,295   
  Valeant Pharmaceuticals    6.375% 15 Oct 2020      —           1,087   
  Votorantim Cimentos SA    7.25% 05 Apr 2041      —           2,838   
  VPI Escrow Corp    6.375% 15 Oct 2020      —           4,348   
  Western Union Co    2.375% 10 Dec 2015      —           1,082   
  Whirlpool Corp    4.7% 01 Jun 2022      —           3,097   
  Willis North America Inc.    7.0% 29 Sep 2019      —           5,986   
  Windstream Corp    8.125% 01 Sep 2018      —           900   
  Windstream Corp    7.5% 01 Apr 2023      —           2,400   
  Wolvering World Wide    6.125% 15 Oct 2020      —           732   
  World Financial Network    3.14% 17 Jan 2023      —           8,914   
  World Financial Network    1.76% 17 May 2021      —           8,965   
          

 

 

 
 

Corporate and Other Obligations

     —         $ 516,621   
          

 

 

 

**

  Synthetic Guaranteed Investment Contracts:      
  Cash & Cash Equivalents         
  Australian Dollar    Cash      —           451   

*

  State Street Bank & Trust Co    Short-Term Investment Fund      —           8,048   

*

  State Street Bank & Trust Co    Short-Term Investment Fund      —           31,875   

*

  State Street Bank & Trust Co    Short-Term Investment Fund      —           35,367   

*

  State Street Bank & Trust Co    Short-Term Investment Fund      —           1,020,993   
          

 

 

 
          —           1,096,734   
          

 

 

 
  U.S. Government and Government Agency Issues      
  Australian Government    4.75% 15 Jun 2016      —           19,646   
  Australian Government    5.25% 15 Mar 2019      —           41,611   

 

23


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  Australian Government    6.0% 15 Feb 2017      —           68,198   
  California St    5.75% 01 Mar 2017      —           11,915   
  California St    5.0% 01 Nov 2037      —           13,950   
  Fannie Mae    1.0% 25 May 2030      —           15,932   
  Fannie Mae    0.875% 20 Dec 2017      —           120,804   
  Fannie Mae    2.625% 20 Nov 2014      —           164,712   
  Fed HM LN Note    0.16% 15 Apr 2013      —           331,664   
  Fed HM LN PC Pool 1J1214    4.0% 01 Mar 2025      —           617   
  Fed HM LN PC Pool 1L1358    1.0% 01 May 2036      —           25,786   
  Fed HM LN PC Pool E02697    4.0% 01 Jun 2025      —           829   
  Fed HM LN PC Pool E02783    4.0% 01 Sep 2025      —           861   
  Fed HM LN PC Pool E02883    4.0% 01 Apr 2026      —           10,385   
  Fed HM LN PC Pool E09016    3.0% 01 Nov 2027      —           38,164   
  Fed HM LN PC Pool E99842    4.0% 01 Oct 2013      —           —     
  Fed HM LN PC Pool G01843    6.0% 01 Jun 2035      —           20,478   
  Fed HM LN PC Pool G01890    4.0% 01 Nov 2013      —           7,568   
  Fed HM LN PC Pool G03737    6.5% 01 Nov 2037      —           26,783   
  Fed HM LN PC Pool G08084    4.0% 01 Apr 2026      —           16,592   
  Fed HM LN PC Pool G08443    4.5% 01 Apr 2041      —           18,251   
  Fed HM LN PC Pool G12743    5.5% 01 Aug 2022      —           5,069   
  Fed HM LN PC Pool G14093    4.5% 01 Oct 2035      —           —     
  Fed HM LN PC Pool G18385    1.0% 01 Sep 2035      —           1,121   
  Fed HM LN PC Pool J11872    4.0% 01 Mar 2026      —           841   
  Fed HM LN PC Pool J14641    4.0% 01 Mar 2025      —           18,405   
  Fed HM LN PC Pool J15157    4.0% 01 Apr 2026      —           635   
  Fed HM LN PC Pool J17969    3.0% 01 Feb 2027      —           66,614   
  Fed HM LN PC Pool Q03572    4.0% 01 Sep 2041      —           92,651   
  Fed HM LN PC Pool Q03681    4.0% 01 Oct 2041      —           100,350   
  Fed HM LN PC Pool Q03780    4.0% 01 Oct 2017      —           1,404   
  Fed HM LN Pool 1Q0669    1.0% 01 Nov 2037      —           2,123   
  Fed HM LN Pool 1Q1159    1.0% 01 May 2038      —           17,865   
  Fed HM LN Pool A89385    4.5% 01 Oct 2039      —           89,436   
  Fed HM LN Pool G03205    5.5% 01 Jul 2035      —           3,973   
  Fed HM LN Pool G04731    5.5% 01 Apr 2038      —           36,448   
  Federal Farm Credit Bank    1.0% 29 Sep 2014      —           21,793   
  Federal Farm Credit Bank    1.0% 26 Jun 2013      —           63,353   
  Federal Farm Credit Bank    1.0% 26 Apr 2013      —           134,540   
  FHLMC TBA    4.5% 01 Dec 2099      —           (27,178
  FHLMC TBA    4.0% 31 Dec 2099      —           (21,416
  FHLMC TBA    4.5% 01 Dec 2099      —           —     
  FICO Strip    0.01% 27 Dec 2018      —           —     
  FICO Strip    0.01% 06 Oct 2015      —           4,957   
  FICO Strip    0.01% 07 Mar 2019      —           8,241   
  FICO Strip    0.01% 26 Sep 2019      —           9,676   
  FICO Strip    0.01% 08 Aug 2015      —           10,924   
  FICO Strip    0.01% 26 Sep 2014      —           18,190   
  FICO Strip    0.01% 11 May 2013      —           20,349   
  FICO Strip    0.01% 03 Feb 2017      —           69,777   
  FICO Strip    0.01% 30 Nov 2017      —           72,433   

 

24


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  Financing Corp    10.7% 06 Oct 2017      —           8,765   
  Financing Corp    9.8% 06 Apr 2018      —           12,860   
  FNMA Pool 254693    5.5% 01 Apr 2033      —           7,316   
  FNMA Pool 255364    6.0% 01 Sep 2034      —           6,567   
  FNMA Pool 256925    6.0% 01 Oct 2037      —           17,903   
  FNMA Pool 555541    1.0% 01 Apr 2033      —           1,376   
  FNMA Pool 725027    5.0% 01 Nov 2033      —           3,773   
  FNMA Pool 725222    5.5% 01 Feb 2034      —           9,298   
  FNMA Pool 725423    5.5% 01 May 2034      —           6,889   
  FNMA Pool 725424    5.5% 01 Apr 2034      —           3,272   
  FNMA Pool 725690    6.0% 01 Aug 2034      —           2,755   
  FNMA Pool 725946    5.5% 01 Nov 2034      —           8,646   
  FNMA Pool 735141    5.5% 01 Jan 2035      —           12,719   
  FNMA Pool 735224    5.5% 01 Feb 2035      —           16,949   
  FNMA Pool 735667    5.0% 01 Jul 2035      —           58,540   
  FNMA Pool 735676    5.0% 01 Jul 2035      —           16,818   
  FNMA Pool 743132    5.0% 01 Oct 2018      —           16,982   
  FNMA Pool 745275    5.0% 01 Feb 2036      —           28,457   
  FNMA Pool 745275    5.0% 01 Feb 2036      —           54,314   
  FNMA Pool 745327    6.0% 01 Mar 2036      —           4,634   
  FNMA Pool 756363    1.0% 01 Dec 2033      —           3,810   
  FNMA Pool 770946    5.0% 01 Apr 2034      —           11,730   
  FNMA Pool 776971    5.0% 01 Apr 2034      —           13,971   
  FNMA Pool 831540    6.0% 01 Jun 2036      —           16,494   
  FNMA Pool 837220    4.5% 01 Aug 2020      —           29,674   
  FNMA Pool 841068    4.5% 01 Feb 2039      —           8,980   
  FNMA Pool 844444    5.0% 01 Dec 2035      —           22,842   
  FNMA Pool 848647    5.5% 01 Jan 2036      —           13,035   
  FNMA Pool 880611    5.5% 01 Apr 2036      —           12,190   
  FNMA Pool 888340    5.0% 01 Aug 2036      —           15,073   
  FNMA Pool 888521    1.0% 01 Mar 2034      —           6,577   
  FNMA Pool 888789    5.0% 01 Jul 2036      —           4,702   
  FNMA Pool 889004    1.0% 01 Aug 2037      —           10,617   
  FNMA Pool 889361    6.0% 01 Mar 2038      —           10,080   
  FNMA Pool 889369    6.0% 01 Feb 2038      —           12,893   
  FNMA Pool 889544    5.5% 01 May 2038      —           9,967   
  FNMA Pool 889579    6.0% 01 May 2038      —           14,197   
  FNMA Pool 889750    6.0% 01 May 2038      —           3,894   
  FNMA Pool 914789    5.0% 01 Apr 2037      —           29,869   
  FNMA Pool 931745    5.0% 01 Aug 2024      —           64,305   
  FNMA Pool 932586    4.5% 01 Mar 2040      —           43,334   
  FNMA Pool 986148    5.5% 01 Jan 2038      —           46,553   
  FNMA Pool 995018    5.5% 01 Jun 2038      —           29,485   
  FNMA Pool 995051    6.0% 01 Mar 2037      —           29,533   
  FNMA Pool AA6450    4.5% 01 Sep 2040      —           38,795   
  FNMA Pool AB1600    4.0% 01 Oct 2025      —           15,906   
  FNMA Pool AB1609    3.5% 01 Dec 2040      —           3,436   
  FNMA Pool AB5236    3.0% 01 May 2027      —           7,410   
  FNMA Pool AD8529    4.5% 01 Aug 2040      —           17,795   

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  FNMA Pool AE0061    6.0% 01 Feb 2040      —           6,844   
  FNMA Pool AE0349    6.0% 01 Apr 2040      —           23,089   
  FNMA Pool AE0368    3.5% 01 Dec 2025      —           2,069   
  FNMA Pool AE0392    5.5% 01 Dec 2039      —           7,207   
  FNMA Pool AE0480    6.0% 01 Jul 2039      —           2,883   
  FNMA Pool AE1016    3.5% 01 Oct 2025      —           17,036   
  FNMA Pool AE1332    4.0% 01 Aug 2025      —           4,277   
  FNMA Pool AE3771    3.5% 01 Jan 2026      —           665   
  FNMA Pool AE9449    3.5% 01 Dec 2025      —           13,792   
  FNMA Pool AH1105    3.5% 01 Dec 2025      —           10,902   
  FNMA Pool AH1882    3.5% 01 Jan 2027      —           309   
  FNMA Pool AH2815    3.5% 01 Mar 2026      —           49,528   
  FNMA Pool AH2857    3.5% 01 Jan 2026      —           5,597   
  FNMA Pool AH8702    3.5% 01 May 2026      —           4,667   
  FNMA Pool AH9523    4.5% 01 Aug 2041      —           15,491   
  FNMA Pool AH9706    3.5% 01 Jan 2026      —           20,491   
  FNMA Pool AI3654    4.5% 01 May 2042      —           18,530   
  FNMA Pool AJ7689    4.0% 01 Dec 2041      —           148,946   
  FNMA Pool AK2989    3.0% 01 May 2027      —           44,383   
  FNMA Pool AK9780    3.5% 01 May 2042      —           10,533   
  FNMA Pool AL0139    1.0% 01 Feb 2039      —           20,632   
  FNMA Pool AL030    4.5% 01 Jun 2026      —           62,731   
  FNMA Pool AL0920    5.0% 01 Jul 2037      —           37,102   
  FNMA Pool AO5515    3.5% 01 Jul 2042      —           12,109   
  FNMA Pool MA0614    4.0% 01 Jan 2041      —           25,728   
  FNMA Pool MA0649    4.0% 01 Apr 2026      —           4,712   
  FNMA Pool MA0694    4.5% 01 Jun 2041      —           5,495   
  FNMA TBA    3.5% 01 Dec 2099      —           (80,607
  FNMA TBA    3.5% 01 Dec 2099      —           —     
  FNMA TBA    4.0% 01 Dec 2099      —           —     
  FNMA TBA    4.0% 01 Dec 2099      —           —     
  FNMA TBA    4.5% 01 Dec 2099      —           54,722   
  FNMA TBA    3.0% 01 Dec 2099      —           63,896   
  FNMA TBA Single Fam    6.0% 01 Dec 2102      —           1,383   
  FNMA TBA Single Fam    4.5% 01 Dec 2100      —           31,059   
  FNMA TBA Single Fam    3.0% 01 Dec 2099      —           90,636   
  FNMA TBA Single Fam    4.5% 01 Dec 2101      —           101,646   
  FNMA TBA Single Fam    3.5% 01 Dec 2099      —           108,019   
  Freddie Mac    1.0% 15 Dec 2029      —           763   
  Freddie Mac    0.15% 03 Apr 2013      —           5,064   
  Freddie Mac    2.375% 13 Jan 2022      —           60,199   
  Freddie Mac    4.875% 13 Jun 2018      —           111,912   
  Freddie Mac    0.16% 21 May 2013      —           167,071   
  GNMA TBA    3.0% 01 Dec 2099      —           53,849   
  Honolulu City & Cnty    5.0% 01 Nov 2025      —           15,719   
  Illinois St    4.95% 01 Jun 2023      —           45,734   
  Illinois St    3.321% 01 Jan 2013      —           55,725   
  Irvine Ranch CA    2.605% 15 Mar 2014      —           36,373   
  Japan Treasury Disc Bill    0.01% 12 Feb 2013      —           90,799   

 

26


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  Kentucky ST Property    5.373% 01 Nov 2025      —           8,864   
  NC State Education    1.0% 25 Jul 2025      —           36,690   
  New York City Transitional    4.725% 01 Nov 2023      —           2,970   
  New York City Transitional    4.905% 01 Nov 2024      —           3,016   
  New York City Transitional    5.075% 01 Nov 2025      —           3,056   
  Overseas Private Inv Corp    0.01% 12 Jul 2016      —           90,044   
  Province of Ontario    4.0% 07 Oct 2019      —           55,680   
  Province of Quebec    4.6% 26 May 2015      —           33,084   
  Republic of Poland    6.375% 15 Jul 2019      —           1,263   
  Republic of Poland    3.875% 16 Jul 2015      —           11,709   
  Resolution Funding Strip    0.01% 15 Jan 2014      —           9,585   
  Resolution Funding Strip    0.01% 15 Apr 2015      —           21,787   
  Resolution Funding Strip    0.01% 15 Jan 2017      —           24,615   
  RFSCP Strip Principal    0.01% 15 Jul 2020      —           96,158   
  Russian Foreign Bond    1.0% 31 Mar 2030      —           5,517   
  Small Business Administration    7.06% 01 Nov 2019      —           1,626   
  Small Business Administration    7.19% 01 Dec 2019      —           2,915   
  Small Business Administration    5.68% 01 Jun 2028      —           19,973   
  South Carolina St Public Svc    1.0% 02 Jun 2014      —           38,069   
  State of Qatar    4.5% 20 Jan 2022      —           8,138   
  Tobacco Settlement    5.875% 15 May 2039      —           7,781   
  Treasury Bill    0.19% 22 Aug 2013      —           48,072   
  Treasury Bill    0.01% 31 Jan 2013      —           101,037   
  Treasury Bill    0.01% 12 Dec 2013      —           111,301   
  Treasury Bill    0.19% 14 Nov 2013      —           149,228   
  Treasury INFL IX N/B    0.625% 15 Jul 2021      —           26,596   
  Treasury INFL IX N/B    0.125% 15 Apr 2017      —           41,437   
  Treasury INFL IX N/B    0.125% 15 Jul 2022      —           85,742   
  Treasury INFL IX N/B    1.125% 15 Jan 2021      —           106,962   
  Treasury INFL IX N/B    0.125% 15 Jan 2022      —           126,505   
  US Treasury N/B    6.125% 15 Nov 2027      —           3,763   
  US Treasury N/B    7.875% 15 Feb 2021      —           3,812   
  US Treasury N/B    1.875% 30 Sep 2017      —           8,024   
  US Treasury N/B    1.0% 31 Mar 2017      —           10,313   
  US Treasury N/B    3.825% 15 Feb 2013      —           13,994   
  US Treasury N/B    2.375% 31 Jul 2017      —           16,798   
  US Treasury N/B    0.875% 30 Apr 2017      —           20,128   
  US Treasury N/B    2.75% 15 Feb 2019      —           22,437   
  US Treasury N/B    1.375% 15 Jan 2013      —           23,313   
  US Treasury N/B    1.25% 31 Jan 2019      —           25,789   
  US Treasury N/B    3.125% 15 May 2021      —           28,723   
  US Treasury N/B    0.50% 31 Jul 2017      —           30,968   
  US Treasury N/B    0.875% 31 Jan 2017      —           31,441   
  US Treasury N/B    6.25% 15 Aug 2023      —           32,685   
  US Treasury N/B    2.75% 15 Nov 2042      —           34,165   
  US Treasury N/B    1.75% 15 May 2022      —           40,879   
  US Treasury N/B    0.625% 30 Nov 2017      —           41,906   
  US Treasury N/B    1.875% 31 Aug 2017      —           42,804   
  US Treasury N/B    1.75% 15 May 2022      —           49,693   

 

27


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  US Treasury N/B    0.25% 15 Oct 2015      —           50,544   
  US Treasury N/B    0.75% 15 Dec 2013      —           50,928   
  US Treasury N/B    2.5% 31 Mar 2015      —           51,182   
  US Treasury N/B    1.0% 30 Sep 2016      —           51,625   
  US Treasury N/B    2.0% 15 Feb 2022      —           60,247   
  US Treasury N/B    0.375% 31 Jul 2013      —           63,413   
  US Treasury N/B    1.875% 30 Jun 2015      —           68,014   
  US Treasury N/B    0.625% 31 May 2017      —           69,258   
  US Treasury N/B    1.625% 15 Aug 2022      —           70,583   
  US Treasury N/B    1.75% 15 Apr 2013      —           85,379   
  US Treasury N/B    1.375% 31 Dec 2018      —           85,762   
  US Treasury N/B    2.625% 15 Nov 2020      —           88,957   
  US Treasury N/B    1.625% 15 Nov 2022      —           93,822   
  US Treasury N/B    0.625% 31 Aug 2017      —           115,015   
  US Treasury N/B    0.25% 31 Aug 2014      —           118,448   
  US Treasury N/B    0.875% 30 Nov 2016      —           130,365   
  US Treasury N/B    3.625% 15 Feb 2020      —           131,998   
  US Treasury N/B    1.5% 30 Jun 2016      —           136,529   
  US Treasury N/B    2.375% 31 Jul 2017      —           158,013   
  US Treasury N/B    1.625% 15 Aug 2022      —           161,674   
  US Treasury N/B    1.375% 28 Feb 2019      —           166,124   
  US Treasury N/B    2.625% 15 Aug 2020      —           170,506   
  US Treasury N/B    1.875% 30 Apr 2014      —           186,369   
  US Treasury N/B    1.75% 31 May 2016      —           218,952   
  US Treasury N/B    2.0% 15 Nov 2021      —           220,830   
  US Treasury N/B    2.5% 30 Apr 2015      —           245,434   
  US Treasury N/B    0.625% 31 Jan 2013      —           246,046   
  US Treasury N/B    1.125% 15 Aug 2021      —           279,591   
  US Treasury N/B    1.0% 31 Aug 2016      —           456,363   
  US Treasury N/B    0.125% 31 Jul 2014      —           520,912   
  US Treasury N/B    2.125% 31 May 2015      —           962,633   
          

 

 

 
             11,489,581   
          

 

 

 
 

Corporate and Other Obligations

     
  ACE Ina Hldg Inc.    5.6% 15 May 2015      —           5,202   
  Actavis Inc.    3.25% 01 Oct 2022      —           4,706   
  Actavis Inc.    3.25% 01 Oct 2022      —           10,472   
  ADT Corp    3.5% 15 Jul 2022      —           2,020   
  Agilent Technologies Inc.    6.5% 01 Nov 2017      —           15,463   
  Alcoa Inc.    6.15% 15 Aug 2020      —           9,959   
  Allied World Assurance    7.5% 01 Aug 2016      —           4,938   
  Allstate Corp    5.0% 15 Aug 2014      —           12,190   
  Ally Auto Receivables Trust    0.45% 15 Jul 2015      —           7,725   
  Ally Auto Receivables Trust    0.8% 16 Jun 2014      —           7,817   
  Ally Master Trust    1.54% 15 Sep 2019      —           31,902   
  Altria Group    2.85% 09 Aug 2022      —           24,563   
  Amazon.com    0.65% 27 Nov 2015      —           37,845   

 

28


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   America Movil SAB    3.625% 30 Mar 2015      —           19,203   
   American Express    0.59% 15 May 2018      —           15,072   
   American Express    0.68% 15 Mar 2018      —           27,316   
   American International Group    3.8% 22 Mar 2017      —           5,757   
   American International Group    4.875% 01 Jun 2022      —           8,675   
   American Intl Group    3.65% 15 Jan 2014      —           11,637   
   American Intl Group    4.875% 15 Sep 2016      —           14,874   
   American Tower Corp    5.05% 01 Sep 2020      —           10,936   
   Americredit Auto Receivables    1.39% 08 Sep 2015      —           8,862   
   Americredit Auto Receivables    1.55% 08 Jul 2016      —           23,465   
   Americredit Automobile    0.76% 08 Oct 2015      —           10,952   
   Americredit Automobile Receivables    1.19% 08 Aug 2015      —           3,191   
   Americredit Automobile Receivables    0.92% 09 Mar 2015      —           3,674   
   Americredit Automobile Receivables    0.96% 09 Jan 2017      —           15,162   
   Americredit Automobile Receivables    0.49% 08 Apr 2016      —           15,458   
   Anadarko Petroleum Corp    5.95% 15 Sep 2016      —           14,491   
   Anglogold Holdings Plc    5.375% 15 Apr 2020      —           8,104   
   Aon Corp    3.5% 30 Sep 2015      —           12,938   
   Apache Corp    2.625% 15 Jan 2023      —           25,029   
   ArcelorMittal    10.35% 01 Jun 2019      —           14,582   
   Asciano Finance    3.125% 23 Sep 2015      —           12,583   
   AT&T Inc.    5.8% 15 Feb 2019      —           12,743   
   AT&T Inc.    1.4% 01 Dec 2017      —           16,594   
   AT&T Inc.    5.8% 15 Feb 2019      —           45,688   
   Autozone Inc.    3.7% 15 Apr 2022      —           9,853   
   Baidu Inc.    2.25% 28 Nov 2017      —           5,174   
   Banc of America Funding Corp    1.0% 25 May 2035      —           4,639   

*

   Bank Amer NA    6.1% 15 Jun 2017      —           9,340   

*

   Bank of America    5.75% 01 Dec 2017      —           32,476   

*

   Bank of America    1.0% 30 Jan 2014      —           48,528   

*

   Bank of America Corp    5.7% 24 Jan 2022      —           1,066   

*

   Bank of America Corp    3.875% 22 Mar 2017      —           3,296   

*

   Bank of America Corp    5.65% 01 May 2018      —           3,978   

*

   Bank of America Corp    5.625% 01 Jul 2020      —           5,255   

*

   Bank of America Corp    7.625% 01 Jun 2019      —           5,510   

*

   Bank of America Corp    5.42% 15 Mar 2017      —           8,324   

*

   Bank of America Corp    1.03% 15 Dec 2016      —           10,108   

*

   Bank of America Corp    3.75% 12 Jul 2016      —           12,049   

*

   Bank of America Corp    5.65% 01 May 2018      —           20,334   

*

   Bank of America Corp    5.49% 15 Mar 2019      —           25,323   

*

   Bank of America Corp    5.625% 01 Jul 2020      —           25,377   

*

   Bank of America Corp    5.7% 24 Jan 2022      —           26,043   
   Bank of Montreal    1.4% 11 Sep 2017      —           17,162   
   Barclays Bank    5.125% 08 Jan 2020      —           10,818   
   Barclays Bank Plc    2.375% 13 Jan 2014      —           43,787   

*

   Baxter International Inc.    1.85% 15 Jan 2017      —           5,742   
   Bear Stearns Coml Mth Secs    1.0% 11 Sep 2038      —           4,008   
   Bear Stearns Coml Mth Secs    5.533% 12 Oct 2041      —           4,436   
   Bear Stearns Coml Mth Secs    1.0% 12 Jan 2045      —           21,686   

 

29


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2012

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  Bear Stearns Commercial Mortgage    1.0% 11 Sep 2038      —           7,394   
  Bear Stearns Commercial Mortgage    1.0% 11 Jun 2040      —           30,454   
  Bear Stearns Cos    5.3% 30 Oct 2015      —           22,456   
  Bear Stearns Cos    7.25% 01 Feb 2018      —           23,963   
  Bear Stearns Cos    6.4% 02 Oct 2017      —           30,421   
  Bear Stearns Cos    5.55% 22 Jan 2017      —           9,569   
  Bears Sterns Adjustable Rate    1.0% 25 Aug 2033      —           2,919   
  Berkshire Hathaway    1.6% 15 May 2017      —           17,427   
  Berkshire Hathaway Fin Corp    5.4% 15 May 2018      —           17,672   
  Boeing Co    5.125% 15 Feb 2013      —           11,589   
  Boston PPTYS Ltd    3.7% 15 Nov 2018      —           7,292   
  BP Capital Markets    1.375% 06 Nov 2017      —           22,183   
  BP Capital Markets    1.846% 05 May 2017      —           24,599   
  BP Capital Markets    4.5% 01 Oct 2020