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, 2013

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, 2013 and 2012


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Index

December 31, 2013 and 2012

 

 

     Page(s)  

Report of Independent Registered Public Accounting Firm

     1   

Financial Statements

  

Statements of Net Assets Available for Benefits as of December 31, 2013 and 2012

     2   

Statements of Changes in Net Assets Available for Benefits for the years ended December  31, 2013 and 2012

     3   

Notes to Financial Statements

     4-15   

Supplemental Information

  

Schedule H, Line 4i: Schedule of Assets (Held at End of Year) as of December 31, 2013

     16-36   


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, 2013 and 2012, 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, 2013 and 2012, 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 2013 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2013 financial statements taken as a whole.

/s/ Crowe Horwath LLP

Oak Brook, Illinois

June 25, 2014


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Statements of Net Assets Available for Benefits

December 31, 2013 and 2012 (in thousands)

 

 

     2013     2012  

Assets

    

Investments

    

Cash and cash equivalents

   $ 672      $ 910   

Common stock (including securities on loan of $26 in 2013 and $36 in 2012)

     10,984        9,953   

U.S. government and government agency issues (including securities on loan of $71 in 2013 and $104 in 2012)

     418        363   

Corporate and other obligations (including securities on loan of $87 in 2013 and $97 in 2012)

     511        517   

Commingled funds

     15,625        7,886   

Synthetic guaranteed investment contracts

     20,329        20,200   

Registered investment companies

     —          2,703   

Collateral held on loaned securities

     188        242   
  

 

 

   

 

 

 

Total investments at fair value

     48,727        42,774   
  

 

 

   

 

 

 

Receivables

    

Note receivables from participants

     4,073        3,807   

Sponsor contributions

     540        399   

Accrued interest and dividends

     66        58   

Due from brokers for securities sold

     9        16   
  

 

 

   

 

 

 

Total receivables

     4,688        4,280   
  

 

 

   

 

 

 

Total assets

     53,415        47,054   
  

 

 

   

 

 

 

Liabilities

    

Accounts payable

     424        362   

Collateral to be paid on loaned securities

     188        242   
  

 

 

   

 

 

 

Total liabilities

     612        604   
  

 

 

   

 

 

 

Net assets available for benefits, reflecting investments at fair value

     52,803        46,450   

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

     (1,023     (1,785
  

 

 

   

 

 

 

Net assets available for benefits

   $ 51,780      $ 44,665   
  

 

 

   

 

 

 

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

 

2


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, 2013 and 2012 (in thousands)

 

 

     2013      2012  

Additions to net assets attributed to

     

Investment income

     

Net appreciation in fair value of investments

   $ 4,544       $ 3,706   

Interest

     645         703   

Dividends

     247         285   
  

 

 

    

 

 

 

Net investment income

     5,436         4,694   
  

 

 

    

 

 

 

Participant loan interest

     156         148   

Contributions

     

Sponsor

     2,011         1,802   

Participant

     3,281         3,160   
  

 

 

    

 

 

 
     5,292         4,962   
  

 

 

    

 

 

 

Total additions

     10,884         9,804   
  

 

 

    

 

 

 

Deductions from net assets attributed to

     

Benefits paid

     3,346         3,951   

Plan expenses

     423         390   
  

 

 

    

 

 

 

Total deductions

     3,769         4,341   
  

 

 

    

 

 

 

Net increase

     7,115         5,463   

Net assets available for benefits

     

Beginning of year

     44,665         39,202   
  

 

 

    

 

 

 

End of year

   $ 51,780       $ 44,665   
  

 

 

    

 

 

 

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

 

3


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

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 Puerto Rico employees of Baxter Healthcare S.A., the Sponsor or the Company, a subsidiary 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 both the Puerto Rico and the United States Internal Revenue Codes. Plan participants may authorize the Company to make payroll deductions under the Plan ranging from 1% to 50% of their pre-tax monthly compensation, limited to a maximum of $15,000 and $13,000 a year in 2013 and 2012, respectively. Participants who have attained the age of 50 by the end of the year may contribute up to an additional $1,500 per year in “catch-up” contributions. 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. Participants are immediately vested in their elective contributions plus actual earnings thereon. Vesting in the Company’s matching and non-matching contributions plus actual earnings thereon is based on years of service. The matching 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

The additional non-matching contributions become fully vested after three years of service. Employees are fully vested in the Company’s matching contributions and non-matching 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. 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.

Participants or their beneficiaries may elect lump-sum benefit payments, or benefits may be paid in installments. Shares of Baxter common stock may also be distributed in kind at the participant’s election. Subject to certain provisions specified in the Plan agreement, employed participants may withdraw their pre-tax contributions (but not the earnings on the contributions) in cases of financial hardship. In the case of a participant termination by reason of death or disability, the entire vested amount is paid to the person or persons legally entitled thereto.

Each participant’s account is credited with the participant’s contributions 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

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

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 19 investment options: Stable Income Fund, Baxter Common Stock Fund, Composite Fund, General Equity Fund, State Street Global Advisors S&P 500 Flagship Fund (SSgA S&P 500 Fund), State Street Global Advisors International EAFE Equity Index Fund (SSgA EAFE Equity Fund), State Street Global Advisors Small Cap Fund (SSgA Small Cap Fund), Northern Trust Domestic Mid Cap Fund, State Street Global Advisors Emerging Markets Fund (SSgA Emerging Markets Fund) and ten different Target Date 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. Starting in 2013, participants are no longer able to make contributions to the Composite Fund and General Equity 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.

Certain reclassifications have been made to conform the prior period financial statements to the current period presentation.

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, 2013 and 2012

 

 

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 certain funds are to track the performances of the S&P 500, Europe, Australasia and the Far East (EAFE), or Russell 2000 indexes. In addition, these funds include target date retirement funds, whose objective is to provide investors, who have a specific date in mind for retirement with a portfolio of investments. The underlying investments for all funds vary, with some holding diversified portfolios of domestic stocks, government agency and corporate 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.
Registered investment companies    Value based upon the closing 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 the wrapper contracts, which is calculated using a replacement cost approach. The underlying securities are valued based upon the methodologies described above. In addition, this investment in 2013 includes an individual separate account with Metropolitan Life Insurance Company (MetLife). The value of this separate account is based upon the unit value provided by MetLife as of the Plan’s financial statement date plus the fair value of the wrapper contracts, which is calculated using a replacement cost approach. The underlying securities primarily of the account, managed by a sub-advisor of the insurance company, consist of fixed income securities. 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.

 

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Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

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, Bank of America N.A. and MetLife. During 2013, certain assets underlying the synthetic GICs were transferred to an individual separate account with MetLife. The portfolio of assets underlying the synthetic GICs primarily includes cash and cash equivalents, U.S. government and government agency issues and corporate and other obligations.

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 $4 thousand and a loss of $26 thousand at December 31, 2013 and 2012, 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 $19.3 million and $18.4 million at December 31, 2013 and 2012, 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 2.0% and 2.2% at December 31, 2013 and 2012, respectively. The average interest rate credited to participants on the synthetic GICs was approximately 2.7% and 3.4% for the years ended December 31, 2013 and 2012. The credit ratings for Transamerica were AA- at both December 31, 2013 and 2012, the credit ratings for Bank of America N.A. were A at both December 31, 2013 and 2012, and the credit rating for MetLife was AA- at December 31, 2013.

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.

Notes Receivables from Participants

Participant 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.

 

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Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

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.

Other

Due from brokers for securities sold 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 (corporate and other obligations). 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.

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

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;

 

   

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.

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

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,
2013
   

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

   $ 672      $ —         $ 672       $ —     

Common stock:

          

Healthcare

     8,165        8,165         —           —     

Consumer products

     936        936         —           —     

Information technology

     836        836         —           —     

Financial services

     334        334         —           —     

Industrial services and materials

     417        417         —           —     

Energy

     228        228         —           —     

Other

     68        68         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total common stock

     10,984        10,984         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

U.S. government and government agency issues

     418        —           418         —     

Corporate and other obligations

     511        —           511         —     

Commingled funds:

          

SSgA S&P 500 fund

     6,405        —           6,405         —     

SSgA EAFE equity fund

     2,298        —           2,298         —     

SSgA Small cap fund

     2,632        —           2,632         —     

Target date retirement funds

     4,124        —           4,124         —     

Other

     166        —           166         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total commingled funds

     15,625        —           15,625         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Synthetic guaranteed investment contracts:

          

Corporate and other obligations

     6,438        —           6,438         —     

U.S. government and government agency issues

     8,666        —           8,666         —     

Individual separate account

     4,783           4,783      

Cash and cash equivalents

     446        —           446         —     

Wrapper contracts

     (4     —           —           (4
  

 

 

   

 

 

    

 

 

    

 

 

 

Total synthetic guaranteed investment contracts

     20,329        —           20,333         (4
  

 

 

   

 

 

    

 

 

    

 

 

 

Collateral held on loaned securities

     188        —           188         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total assets

   $ 48,727      $ 10,984       $ 37,747       $ (4
  

 

 

   

 

 

    

 

 

    

 

 

 

Liability

          

Collateral to be paid on loaned securities

   $ 188      $ 26       $ 162       $ —     
  

 

 

   

 

 

    

 

 

    

 

 

 

 

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Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

           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:

          

SSgA S&P 500 fund

     4,414        —           4,414         —     

SSgA EAFE equity fund

     1,841        —           1,841         —     

SSgA Small cap fund

     1,631        —           1,631         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total commingled funds:

     7,886        —           7,886         —     

Registered investment companies:

          

Target date 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       $ —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Transfers between hierarchy measurement levels are recognized by the Plan as of the beginning of the reporting period. In 2013, due to a change in the structure of the investment, the target date retirement funds are now classified as commingled funds. In 2012 they were classified as registered investment companies. The fair value of commingled funds is valued based upon the net asset value of the underlying securities and is classified as Level 2.

 

11


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

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, 2011

   $ (8

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

     (18
  

 

 

 

Balance at December 31, 2012

     (26
  

 

 

 

Additions

     1   

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

     21   
  

 

 

 

Balance at December 31, 2013

   $ (4
  

 

 

 

The unrealized losses from the wrapper contracts are excluded from the net appreciation 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. The additions are due to the new contract with MetLife as detailed in Note 2.

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, 2013 and 2012 are summarized as follows:

 

(values in thousands, except per share)    2013      2012  

Baxter common stock, 107,710 shares and 104,186 shares at December 31, 2013 and 2012, respectively

   $ 7,491       $ 6,945   

SSgA S&P 500 Fund

     6,405         4,414   

MetLife Individual Separate Account

     4,783         *   

SSgA Small Cap Fund

     2,632         *   

 

* Does not meet 5% threshold

 

12


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

Investments as of December 31, 2013 and 2012 are segregated into various investment fund options as follows:

 

     2013     2012  

(in thousands)

    

Cash (available for investment)

   $ 135      $ 129   

Stable Income Fund

     20,738        20,874   

Baxter Common Stock Fund

     7,584        6,993   

Composite Fund

     2,132        1,984   

General Equity Fund

     2,263        1,908   

SSgA S&P 500 Fund

     6,405        4,414   

SSgA EAFE Equity Fund

     2,298        1,841   

Edwards Lifesciences Common Stock Fund

     62        90   

SSgA Small Cap Fund

     2,632        1,631   

Northern Trust Domestic Mid Cap Fund

     145        —     

SSgA Emerging Markets Fund

     21        —     

Target Date Retirement Funds

     4,124        2,668   

Collateral held on loaned securities

     188        242   
  

 

 

   

 

 

 

Total investments at fair value

     48,727        42,774   

Adjustment from fair value to contract value for Stable Income Fund

     (1,023     (1,785
  

 

 

   

 

 

 

Total investments

   $ 47,704      $ 40,989   
  

 

 

   

 

 

 

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

 

     2013     2012  

(in thousands)

    

Baxter common stock

   $ 324      $ 1,916   

Other common stock

     949        397   

U.S. government and government agency issues

     (22     —     

Corporate and other obligations

     (23     43   

Commingled funds

     3,316        1,157   

Registered investment companies

     —          193   
  

 

 

   

 

 

 
   $ 4,544      $ 3,706   
  

 

 

   

 

 

 

 

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, to the extent that such replacement securities are available on the open market and if to the extent that such proceeds are insufficient or the collateral is unavailable, the purchase of replacement securities shall be made at Trustee expense 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.

 

13


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

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.

As of December 31, 2013 and 2012, the Plan had securities on loan with a fair market of $184 thousand and $237 thousand, respectively, with cash collateral received of $188 thousand and $242 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, 2013 and 2012, and the net asset value of this fund was approximately $1.00 per unit. As of December 31, 2013 and 2012 the cash collateral received is reflected at its fair value of $188 thousand and $242 thousand in the 2013 and 2012 Statements of Net Assets Available for Benefits, respectively.

Non-cash collateral of $23 thousand received for securities on loan at December 31, 2013, consisted of U.S. government and government agency issues, equity securities, and corporate and other obligations held by the Custodian on behalf of the Plan. Non-cash collateral is not included with the collateral balance on the 2013 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. The Plan did not receive any non-cash collateral for securities on loan at December 31, 2012. Securities lending income allocated to the Plan amounted to $422 and $577 for 2013 and 2012, 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.

U.S. GAAP requires plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2013 and 2012, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however there are currently no audits for any tax periods in progress. The plan administrator believes it is no longer subject to income tax examinations for years prior to 2010.

 

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.

 

14


Table of Contents

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

 

 

At December 31, 2013 and 2012, 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; interest rate wrapper contracts of Transamerica, issuer of the Plan’s fully benefit-responsive contracts; and shares of common stock, bonds, an individual separate account and interest rate wrapper contracts of MetLife, issuer of the Plan’s fully benefit-responsive contracts; and units of commingled funds managed by Northern Trust Corporation, an investment manager for the Plan. 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.

 

11. Subsequent Event

On March 27, 2014, Baxter announced plans to create two separate, independent global healthcare companies – one focused on developing and marketing innovative biopharmaceuticals and the other on life-saving medical products. The transaction is intended to take the form of a tax-free distribution to Baxter shareholders of publicly traded stock in the new biopharmaceuticals company. The transaction is expected to be completed by mid-year 2015, subject to market, regulatory and certain other conditions, including final approval by the Baxter Board of Directors, receipt of a favorable opinion and/or rulings with respect to the tax-free nature of the transaction, and the effectiveness of a Form 10 registration statement that will be filed with the SEC. Any impact on the Plan as of the issuance date is unknown to the Plan Management.

 

15


Table of Contents

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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Cash and Cash Equivalents:         
  

Australian Dollar

   Currency      —         $ 5   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           672,190   
           

 

 

 
  

Cash and cash equivalents

        —         $ 672,195   
           

 

 

 

**

   Common Stock:         
  

Abbott Laboratories

   Common Stock      —           30,542   
  

Ace Ltd

   Common Stock      —           17,403   
  

Adobe Systems Inc

   Common Stock      —           24,344   
  

Aes Corp

   Common Stock      —           9,811   
  

Agilent Technologies Inc

   Common Stock      —           8,681   
  

Alcoa Inc

   Common Stock      —           7,868   
  

Alexion Pharmaceuticals Inc

   Common Stock      —           41,024   
  

Allergan Inc

   Common Stock      —           44,098   
  

Allergan Inc

   Common Stock      —           10,312   
  

Amazon.Com Inc

   Common Stock      —           90,730   
  

American Intl Group

   Common Stock      —           9,798   
  

American Tower Corp

   Common Stock      —           23,806   
  

Aon Plc

   Common Stock      —           8,735   
  

Apple Inc

   Common Stock      —           112,033   
  

Applied Materials Inc

   Common Stock      —           7,878   
  

ARM Holdings Plc

   Common Stock      —           22,954   
  

Baker Hughes Inc

   Common Stock      —           6,863   

*

  

Bank of America

   Common Stock      —           18,106   

*

  

Bank of America

   Common Stock      —           9,610   

*

  

Baxter International Inc

   Common Stock      —           7,491,232   
  

BCE Inc

   Common Stock      —           11,649   
  

Biogen Idec Inc

   Common Stock      —           56,933   
  

Boeing Co

   Common Stock      —           46,080   
  

Boeing Co

   Common Stock      —           13,698   
  

BP Plc

   Common Stock      —           10,489   
  

Bristol Myers Squibb Co

   Common Stock      —           49,377   
  

Cameron International Corp

   Common Stock      —           7,505   
  

Canadian Pacific Railway Ltd

   Common Stock      —           28,575   
  

Capital One

   Common Stock      —           9,899   
  

Capital One

   Common Stock      —           18,885   
  

Cardinal Health Inc

   Common Stock      —           7,794   
  

Celgene Corp

   Common Stock      —           24,335   
  

Chipotle Mexican Grill Inc

   Common Stock      —           24,703   
  

Cisco Systems Inc

   Common Stock      —           12,856   
  

CIT Group Inc

   Common Stock      —           9,809   
  

Citigroup Inc

   Common Stock      —           9,740   
  

Citigroup Inc

   Common Stock      —           18,337   
  

Citrix Systems Inc

   Common Stock      —           10,077   
  

Coca Cola Co

   Common Stock      —           11,582   
  

Comcast Corp

   Common Stock      —           7,888   

 

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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  

Concho Resources Inc

   Common Stock      —           25,372   
  

Costco Wholesale Corp

   Common Stock      —           45,452   
  

Covidien Plc

   Common Stock      —           10,807   
  

CVS Caremark Corp

   Common Stock      —           13,288   
  

CVS Caremark Corp

   Common Stock      —           9,697   
  

Diageo Plc

   Common Stock      —           19,818   
  

DirectTV

   Common Stock      —           9,881   
  

Discovery Communications

   Common Stock      —           35,135   
  

Dollar General Corp

   Common Stock      —           12,334   
  

Du Pont E I De Nemours & Co

   Common Stock      —           9,943   
  

Dunkin Brands Group Inc

   Common Stock      —           27,505   
  

Ebay Inc

   Common Stock      —           21,126   
  

Edwards Lifesciences Corp

   Common Stock      —           61,675   
  

Encana Corp

   Common Stock      —           6,827   
  

EOG Resources Inc

   Common Stock      —           28,298   
  

Estee Lauder Companies

   Common Stock      —           35,659   
  

Exelon Corp

   Common Stock      —           11,476   
  

Express Scripts Holding Co

   Common Stock      —           32,350   
  

Exxon Mobil Corp

   Common Stock      —           29,199   
  

Facebook Inc

   Common Stock      —           48,263   
  

Fireeye Inc

   Common Stock      —           5,120   
  

Flextronics Intl Ltd

   Common Stock      —           7,544   
  

FMC Technologies Inc

   Common Stock      —           12,042   
  

Ford Motor Co

   Common Stock      —           15,960   
  

General Electric Co

   Common Stock      —           29,572   
  

General Electric Co

   Common Stock      —           9,740   
  

Gilead Sciences Inc

   Common Stock      —           42,690   
  

Goldman Sachs Group

   Common Stock      —           40,825   
  

Google Inc

   Common Stock      —           102,561   
  

Google Inc

   Common Stock      —           9,138   
  

Halliburton Co

   Common Stock      —           15,534   
  

Hess Corp

   Common Stock      —           9,683   
  

Honeywell International Inc

   Common Stock      —           15,531   
  

Hospira Inc

   Common Stock      —           6,784   
  

Illumina Inc

   Common Stock      —           6,965   
  

Inditex Unspon Adr

   Common Stock      —           49,927   
  

Invesco Ltd

   Common Stock      —           9,315   
  

Johnson & Johnson

   Common Stock      —           10,800   
  

Johnson Controls Inc

   Common Stock      —           15,863   
  

JP Morgan Chase & Co

   Common Stock      —           15,699   
  

Kansas City Southern

   Common Stock      —           11,921   
  

Kohl’s Corp

   Common Stock      —           7,902   
  

Linkedin Corp

   Common Stock      —           42,534   
  

Lowe’s Companies, Inc

   Common Stock      —           7,708   
  

Marathon Oil Corp

   Common Stock      —           14,215   
  

Marsh & McLennan Cos

   Common Stock      —           8,797   
  

Mastercard Inc

   Common Stock      —           101,149   
  

McDonald’s Corp

   Common Stock      —           9,190   
  

McKesson Corp

   Common Stock      —           6,935   

 

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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  

Merck & Co. Inc

   Common Stock      —           14,492   
  

Michael Kors Holdings Ltd

   Common Stock      —           23,446   
  

Microsoft Corp

   Common Stock      —           9,344   
  

Mondelez International Inc

   Common Stock      —           38,139   
  

Monsanto Co

   Common Stock      —           59,651   
  

Monsanto Co

   Common Stock      —           16,522   
  

Morgan Stanley

   Common Stock      —           31,136   
  

Mosaic Co

   Common Stock      —           6,197   
  

Netapp Inc

   Common Stock      —           7,612   
  

Netflix Inc

   Common Stock      —           26,871   
  

Nike Inc

   Common Stock      —           49,702   
  

Novartis AG

   Common Stock      —           14,117   
  

Novartis AG

   Common Stock      —           9,176   
  

Novo Nordisk

   Common Stock      —           39,894   
  

Oracle Corp

   Common Stock      —           15,623   
  

Owens Illinois Inc

   Common Stock      —           4,444   
  

Owens Illinois Inc

   Common Stock      —           7,002   
  

Perrigo Co Plc

   Common Stock      —           26,043   
  

Pfizer Inc

   Common Stock      —           26,513   
  

PNC Financial Services Group

   Common Stock      —           17,518   
  

Precision Castparts Corp

   Common Stock      —           49,786   
  

Priceline.Com Inc

   Common Stock      —           65,153   
  

Procter & Gamble Co

   Common Stock      —           6,945   
  

Qualcomm Inc

   Common Stock      —           11,643   
  

Ralph Lauren Corp

   Common Stock      —           22,937   
  

Red Hat Inc

   Common Stock      —           32,811   
  

Republic Services Inc

   Common Stock      —           4,331   
  

Rolls Royce Holdings

   Common Stock      —           14,353   
  

Salesforce.com Inc

   Common Stock      —           40,952   
  

Sanofi SA

   Common Stock      —           8,881   
  

Schlumberger Ltd

   Common Stock      —           33,707   
  

Schlumberger Ltd

   Common Stock      —           9,156   
  

Charles Schwab Corp

   Common Stock      —           7,045   
  

Southwest Airlines

   Common Stock      —           7,776   
  

Southwestern Energy Co

   Common Stock      —           9,572   
  

Splunk Inc

   Common Stock      —           25,321   
  

Sprouts Farmers Market Inc

   Common Stock      —           5,309   
  

Starbucks Corp

   Common Stock      —           27,219   
  

Swatch Group AG

   Common Stock      —           24,735   
  

Symantec Corp

   Common Stock      —           8,504   
  

Tableau Software Inc

   Common Stock      —           4,880   
  

Teradata Corp

   Common Stock      —           2,910   
  

Tesla Motors Inc

   Common Stock      —           19,253   
  

Texas Instruments Inc

   Common Stock      —           17,544   
  

Texas Instruments Inc

   Common Stock      —           9,860   
  

Thermo Fisher Scientific Inc

   Common Stock      —           9,918   
  

Time Warner Inc

   Common Stock      —           18,261   
  

Time Warner Inc

   Common Stock      —           7,872   
  

TJX Companies Inc

   Common Stock      —           55,967   

 

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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Tripadvisor Inc    Common Stock      —           11,967   
   Twenty First Century Fox    Common Stock      —           13,641   
   Twitter Inc    Common Stock      —           14,662   
   Under Armour Inc    Common Stock      —           22,281   
   Union Pacific Corp    Common Stock      —           29,560   
   United Technologies Corp    Common Stock      —           36,612   
   Unitedhealth Group Inc    Common Stock      —           22,671   
   Unitedhealth Group Inc    Common Stock      —           7,746   
   Vertex Pharmaceuticals Inc    Common Stock      —           36,451   
   Viacom Inc    Common Stock      —           18,516   
   Visa Inc    Common Stock      —           59,330   
   VMware Inc    Common Stock      —           30,995   
   Vodafone Group    Common Stock      —           25,569   
   Vodafone Group    Common Stock      —           10,257   
   Walt Disney Co    Common Stock      —           41,821   
   Weatherford Intl Ltd    Common Stock      —           9,444   
   Wellpoint Inc    Common Stock      —           5,563   
   Whole Foods Market Inc    Common Stock      —           35,511   
   Workday Inc    Common Stock      —           18,497   
   Youku Tudou Inc Adr    Common Stock      —           5,474   
           

 

 

 
  

Common Stock

        —         $ 10,984,399   
           

 

 

 

**

  

U.S. Government and Government Agency Issues:

     
   Bonos Y Oblig Del Estado    5.5% 30 Apr 2021      —           1,926   
   Bonos Y Oblig Del Estado    5.85% 31 Jan 2022      —           6,006   
   Buoni Poliennali Del Tes    5.5% 01 Nov 2022      —           5,134   
   Fannie Mae    7.25% 15 May 2030      —           4,636   
   Fannie Mae    6.625% 15 Nov 2030      —           15,935   
   Fed HM LN PC Pool A58677    5.5% 01 Mar 2037      —           2,423   
   Fed HM LN PC Pool C09004    3.5% 01 Jul 2042      —           11,154   
   Fed HM LN PC Pool C48827    6.0% 01 Mar 2031      —           90   
   Fed HM LN PC Pool C91370    4.5% 01 May 2031      —           4,117   
   Fed HM LN PC Pool G12334    5.0% 01 Sep 2021      —           1,176   
   Fed HM LN PC Pool J16933    3.0% 01 Oct 2026      —           962   
   Fed HM LN PC Pool J18615    3.0% 01 Apr 2027      —           494   
   Fed HM LN PC Pool J18702    3.0% 01 Mar 2027      —           2,424   
   Fed HM LN PC Pool J18832    3.0% 01 Apr 2027      —           346   
   Fed HM LN PC Pool J19087    3.0% 01 May 2027      —           281   
   Fed Republic Of Brazil    4.25% 07 Jan 2025      —           4,730   
   FNMA Pool 256398    6.0% 01 Sep 2021      —           229   
   FNMA Pool 581043    6.0% 01 May 2016      —           65   
   FNMA Pool 615005    6.0% 01 Dec 2016      —           141   
   FNMA Pool 694448    5.5% 01 Apr 2033      —           1,840   
   FNMA Pool 725690    6.0% 01 Aug 2034      —           1,600   
   FNMA Pool 748115    6.0% 01 Oct 2033      —           616   
   FNMA Pool 815316    5.5% 01 May 2035      —           2,373   
   FNMA Pool 822979    5.5% 01 Apr 2035      —           2,369   

 

19


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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   FNMA Pool 885504    6.0% 01 Aug 2021      —           728   
   FNMA Pool 902793    6.5% 01 Nov 2036      —           1,033   
   FNMA Pool AH3765    4.0% 01 Jan 2041      —           11,326   
   FNMA Pool AH3979    4.0% 01 Feb 2041      —           4,036   
   FNMA Pool AH4008    4.0% 01 Mar 2041      —           5,332   
   FNMA Pool AH9374    4.5% 01 Apr 2041      —           5,483   
   FNMA Pool AL0920    5.0% 01 Jul 2037      —           4,377   
   FNMA Pool AO3466    3.0% 01 Jun 2027      —           5,095   
   FNMA Pool AO3540    3.0% 01 Jun 2042      —           2,391   
   FNMA Pool AO5515    3.5% 01 Jul 2042      —           618   
   FNMA Pool AO8494    2.5% 01 Aug 2027      —           9,230   
   FNMA Pool AP6604    3.0% 01 Sep 2042      —           9,395   
   FNMA Pool MA0734    4.5% 01 May 2031      —           4,039   
   FNMA Pool MA0918    4.0% 01 Dec 2041      —           11,047   
   GNMA II Pool 710082    4.698% 20 Jul 2061      —           805   
   GNMA II Pool 710089    4.7% 20 Oct 2061      —           575   
   GNMA II Pool 766519    4.668% 20 May 2062      —           751   
   GNMA II Pool 766522    4.538% 20 Nov 2062      —           854   
   GNMA II Pool 766544    4.499% 20 Dec 2062      —           853   
   GNMA II Pool 766549    4.616% 20 Jul 2062      —           1,272   
   Kingdom Of Spain    4.0% 06 Mar 2018      —           14,404   
   Mex Bonos Desarr    6.5% 10 Jun 2021      —           20,749   
   Obrigacoes Do Tesouro    5.65% 15 Feb 2024      —           8,932   
   Republic Of Philippines    3.9% 26 Nov 2022      —           2,865   
   Republic Of South Africa    5.875% 16 Sep 2025      —           3,774   
   Tenn Valley Authority    3.5% 15 Dec 2042      —           5,325   
   United Mexican States    6.05% 11 Jan 2040      —           5,761   
   US Treasury N/B    3.0% 15 May 2042      —           25,544   
   US Treasury N/B    2.75% 15 Aug 2042      —           944   
   US Treasury N/B    3.125% 15 Feb 2043      —           8,335   
   US Treasury N/B    2.875% 15 May 2043      —           6,279   
   US Treasury N/B    3.625% 15 Aug 2043      —           4,502   
   US Treasury N/B    3.75% 15 Nov 2043      —           9,281   
   US Treasury N/B    1.875% 31 Aug 2017      —           62,131   
   US Treasury N/B    0.25% 31 Mar 2014      —           9,473   
   US Treasury N/B    1.75% 15 May 2022      —           7,348   
   US Treasury N/B    1.0% 30 Jun 2019      —           17,316   
   US Treasury N/B    1.625% 15 Aug 2022      —           1,024   
   US Treasury N/B    0.25% 31 Aug 2014      —           7,423   
   US Treasury N/B    0.125% 31 Dec 2014      —           38,858   
   US Treasury N/B    0.25% 31 Jul 2015      —           7,151   
           

 

 

 
  

U.S. Government and Government Agency Issues

     —         $ 417,726   
           

 

 

 

**

  

Corporate and Other Obligations:

     
  

Alcoa Inc

   5.87% 23 Feb 2022      —           4,443   
  

American Axle & Mfg Inc

   5.125% 15 Feb 2019      —           476   
  

American Tower Corp

   4.625% 01 Apr 2015      —           1,995   

 

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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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   American Tower Corp    4.5% 15 Jan 2018      —           2,979   
   Americredit Automobile Receivables    1.19% 08 May 2018      —           1,320   
   Americredit Automobile Receivables    1.79% 08 Mar 2019      —           1,051   
   Amphenol Corp    4.75% 15 Nov 2014      —           4,379   
   Anadarko Petroleum Corp    6.375% 15 Sep 2017      —           5,626   
   Arcelormittal    7.25% 01 Mar 2041      —           4,743   
   Associates Corp NA    6.95% 01 Nov 2018      —           2,364   
   Audatex North America Inc    6.0% 15 Jun 2021      —           5,480   
   Avon Products Inc    4.6% 15 Mar 2020      —           657   
   Banc of America Commercial Mortgage    1.0% 10 Apr 2049      —           2,201   
   Banco Santander Bras Ci    4.625% 13 Feb 2017      —           5,509   
   Banco Santander Chile    3.875% 20 Sep 2022      —           2,498   

*

   Bank of America    6.4% 28 Aug 2017      —           2,748   

*

   Bank of America    5.625% 01 Jul 2020      —           5,978   

*

   Bank of America    5.0% 13 May 2021      —           1,954   
   BBVA Banco Continental    3.25% 08 Apr 2018      —           3,774   
   Bear Stearns Commercial Mortgage    1.0% 11 Jun 2040      —           2,599   
   Braskem America Finance    7.125% 22 Jul 2041      —           3,955   
   Brocade Communications    6.875% 15 Jan 2020      —           639   
   Bunge Limited Finance Co    4.1% 15 Mar 2016      —           1,049   
   CBRE Services Inc    5.0% 15 Mar 2023      —           2,355   
   CCO Hldgs LLC/Cap Corp    6.5% 30 Apr 2021      —           1,429   
   CCO Hldgs LLC/Cap Corp    5.25% 15 Mar 2021      —           2,972   
   CD Commercial Mortgage Trust    5.322% 11 Dec 2049      —           6,671   
   Celulosa Arauco    5.0% 21 Jan 2021      —           3,007   
   Centurylink Inc    5.625% 01 Apr 2020      —           1,145   
   Chesapeake Energy Corp    3.25% 15 Mar 2016      —           2,742   
   Cielo Sa/Cielo Usa Inc    3.75% 16 Nov 2022      —           4,715   
   Citigroup Inc    4.45% 10 Jan 2017      —           4,665   
   Citigroup Inc    4.05% 30 Jul 2022      —           2,161   
   Citigroup Inc    1.3% 01 Apr 2016      —           2,987   
   CNOOC Finance    4.25% 09 May 2043      —           2,232   
   CNPC General Capital    3.95% 19 Apr 2022      —           2,557   
   Comcast Corp    5.65% 15 Jun 2035      —           1,284   
   Comm Mortgage Trust    1.0% 10 Dec 2049      —           747   
   Continental Resources    4.5% 15 Apr 2023      —           738   
   Contl Airlines    4.0% 29 Apr 2026      —           2,240   
   Contl Airlines    5.983% 19 Oct 2023      —           3,733   
   Cox Communications Inc    5.45% 15 Dec 2014      —           415   
   Credit Suisse Mortgage Trust    1.0% 15 Jan 2049      —           4,662   
   Crown Castle Towers LLC    3.214% 15 Aug 2035      —           1,350   
   Delhaize Group    4.125% 10 Apr 2019      —           4,289   
   Deluxe Corp    6.0% 15 Nov 2020      —           7,452   
   Dolphin Energy Ltd    5.5% 15 Dec 2021      —           2,894   
   Dun & Bradstreet Corp    3.25% 01 Dec 2017      —           1,874   
   Ecopetrol SA    5.875% 18 Sep 2023      —           629   
   Ecopetrol SA    7.375% 18 Sep 2043      —           2,441   
   Embarq Corp    7.995% 01 Jun 2036      —           8,447   
   Energy Transfer Partners    6.05% 01 Jun 2041      —           5,837   

 

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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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Energy Transfer Partners    5.2% 01 Feb 2022      —           1,185   
   Enersis SA/Cayman Island    7.375% 15 Jan 2014      —           2,057   
   Equifax Inc    7.0% 01 Jul 2037      —           2,943   
   Firstenergy Corp    2.75% 15 Mar 2018      —           1,887   
   Ford Motor Co    7.45% 16 Jul 2031      —           3,893   
   Ford Motor Credit Co LLC    5.75% 01 Feb 2021      —           4,451   
   Ford Motor Credit Co LLC    5.0% 15 May 2018      —           5,753   
   Freeport Mcmoran    2.375% 15 Mar 2018      —           2,642   
   Frontier Communications    7.875% 15 Jan 2027      —           3,687   
   Frontier Communications    8.5% 15 Apr 2020      —           3,486   
   GCCFC Commercial Mortgage    5.736% 10 Dec 2049      —           1,775   
   GE Equipment    0.6% 23 May 2016      —           8,537   
   General Elec Cap Corp    5.3% 11 Feb 2021      —           4,444   
   General Elec Cap Corp    3.75% 14 Nov 2014      —           5,797   
   General Elec Cap Corp    2.95% 09 May 2016      —           2,634   
   General Motors Finl Co    6.75% 01 Jun 2018      —           1,208   
   Georgia Pacific LLC    7.37% 01 Dec 2025      —           2,124   
   Georgia Pacific LLC    7.25% 01 Jun 2028      —           4,071   
   Georgia Pacific LLC    7.75% 15 Nov 2029      —           3,102   
   Georgia Pacific LLC    8.875% 15 May 2031      —           92   
   Goldman Sachs Group    6.15% 01 Apr 2018      —           3,797   
   Goldman Sachs Group    5.25% 27 Jul 2021      —           3,407   
   Grupo Televisa Sab    7.25% 14 May 2043      —           1,638   
   GS Mortgage Securities Trust    1.0% 10 Aug 2045      —           6,689   
   HCA Inc    7.5% 15 Feb 2022      —           5,451   
   Intl Lease Finance Corp    6.25% 15 May 2019      —           9,462   
   Intl Lease Finance Corp    3.875% 15 Apr 2018      —           4,647   
   Ipic Gmtn Ltd    6.875% 01 Nov 2041      —           4,137   
   JP Morgan Chase & Co    3.7% 20 Jan 2015      —           1,775   
   JP Morgan Chase & Co    4.25% 15 Oct 2020      —           632   
   JP Morgan Chase & Co    4.625% 10 May 2021      —           999   
   JP Morgan Chase & Co    4.5% 24 Jan 2022      —           3,432   
   Lotte Shopping Co Ltd    3.375% 09 May 2017      —           3,051   
   Methanex Corp    3.25% 15 Dec 2019      —           2,563   
   Mexichem Sab DE CV    6.75% 19 Sep 2042      —           2,768   
   ML CFC Commercial Mortgage Trust    1.0% 12 Mar 2051      —           1,311   
   Morgan Stanley    5.5% 24 Jul 2020      —           4,295   
   Morgan Stanley    5.55% 27 Apr 2017      —           3,693   
   Morgan Stanley    5.375% 15 Oct 2015      —           926   
   Morgan Stanley    5.5% 26 Jan 2020      —           2,453   
   Morgan Stanley Capital I Trust    1.0% 12 Apr 2049      —           9,232   
   Morgan Stanley Capital I Trust    5.569% 15 Dec 2044      —           8,785   
   Myriad Int Holding BV    6.375% 28 Jul 2017      —           1,917   
   Myriad Int Holding BV    6.0% 18 Jul 2020      —           3,604   
   Nabors Industries Inc    5.1% 15 Sep 2023      —           4,363   
   National Rural Util Coop    1.0% 30 Apr 2043      —           2,282   
   Newfield Exploration Co    5.75% 30 Jan 2022      —           3,001   
   Olin Corp    5.5% 15 Aug 2022      —           991   
   Oshkosh Corp    8.5% 01 Mar 2020      —           2,268   

 

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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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Perkinelmer Inc    5.0% 15 Nov 2021      —           2,940   
   Pertamina Persero    5.625% 20 May 2043      —           7,137   
   Petrobras Global Finance    5.625% 20 May 2043      —           2,000   
   Petrobras Intl Fin Co    6.75% 27 Jan 2041      —           3,512   
   Petroleos Mexicanos    3.5% 18 Jul 2018      —           1,291   
   Phillips 66    4.3% 01 Apr 2022      —           2,153   
   Pko Fin Ab    4.63% 28 Sep 2022      —           3,164   
   Plains Exploration & Pro    6.875% 15 Feb 2023      —           4,651   
   Polyone Corp    5.25% 15 Mar 2023      —           2,324   
   Post Holdings Inc    7.375% 15 Feb 2022      —           3,259   
   Post Holdings Inc    7.375% 15 Feb 2022      —           850   
   Qtel International Fin    7.875% 10 Jun 2019      —           4,452   
   Reynolds American Inc    7.25% 15 Jun 2037      —           6,513   
   Rock Tenn Co    4.0% 01 Mar 2023      —           1,708   
   Rowan Companies Inc    5.0% 01 Sep 2017      —           3,445   
   RPM International Inc    6.125% 15 Oct 2019      —           3,386   
   Santander Drive Auto    2.7% 15 Aug 2018      —           1,564   
   Santander Drive Auto    1.94% 15 Dec 2016      —           6,482   
   Santander Drive Auto    1.94% 15 Mar 2018      —           1,936   
   Sealed Air Corp    5.25% 01 Apr 2023      —           1,868   
   Sealed Air Corp    6.5% 01 Dec 2020      —           1,281   
   Sequoia Mortgage Trust    1.0% 25 May 2043      —           3,259   
   Service Corp Intl    5.375% 15 Jan 2022      —           1,274   
   Sidewinder Drilling Inc    9.75% 15 Nov 2019      —           1,282   
   Sk Telecom Co Ltd    6.625% 20 Jul 2027      —           3,070   
   SLM Corp    6.25% 25 Jan 2016      —           8,725   
   SLM Corp    4.875% 17 Jun 2019      —           4,553   
   SM Energy Co    6.5% 01 Jan 2023      —           2,292   
   Springleaf Funding Trust    3.92% 16 Jan 2023      —           4,772   
   Sprint Capital Corp    6.875% 15 Nov 2028      —           6,116   
   Steel Dynamics Inc    5.25% 15 Apr 2023      —           795   
   Telefonica Emisiones Sau    5.134% 27 Apr 2020      —           2,110   
   Telefonica Emisiones Sau    3.992% 18 Feb 2016      —           2,643   
   Telefonica Emisiones Sau    5.462% 16 Feb 2021      —           140   
   Telemar Norte Leste Sa    5.5% 23 Oct 2020      —           3,317   
   Thai Oil Pcl    4.875% 23 Jan 2043      —           4,270   
   Time Warner Cable Inc    5.875% 15 Nov 2040      —           917   
   Time Warner Cable Inc    5.5% 01 Sep 2041      —           1,481   
   Time Warner Cable Inc    4.5% 15 Sep 2042      —           1,405   
   Toyota Motor Credit Corp    1.75% 22 May 2017      —           4,524   
   Transelec SA    4.625% 26 Jul 2023      —           2,549   
   Transocean Inc    6.5% 15 Nov 2020      —           6,805   
   Transport De Gas Peru    4.25% 30 Apr 2028      —           4,114   
   USG Corp    9.75% 15 Jan 2018      —           2,506   
   Valeant Pharmaceuticals    6.375% 15 Oct 2020      —           1,884   
   Verizon Communications    6.4% 15 Feb 2038      —           2,528   
   Verizon Communications    3.65% 14 Sep 2018      —           3,645   
   Verizon Communications    6.55% 15 Sep 2043      —           8,832   
   Votorantim Cimentos SA    7.25% 05 Apr 2041      —           2,516   

 

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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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Western Union Co    2.375% 10 Dec 2015      —           1,152   
   Whirlpool Corp    4.7% 01 Jun 2022      —           3,163   
   Windstream Corp    8.125% 01 Sep 2018      —           925   
   Windstream Corp    7.5% 01 Apr 2023      —           2,396   
   Wolverine World Wide    6.125% 15 Oct 2020      —           779   
   World Financial Network    3.14% 17 Jan 2023      —           8,840   
   World Financial Network    1.76% 17 May 2021      —           9,254   
           

 

 

 
  

Corporate and Other Obligations

        —         $ 511,173   
           

 

 

 

Synthetic Guaranteed Investment Contracts:

     
   Cash & Cash Equivalents         

*

   State Street Bank & Trust Co    Short-Term Investment Fund      —           121,584   

*

   State Street Bank & Trust Co    Short-Term Investment Fund      —           251,201   

*

   State Street Bank & Trust Co    Short-Term Investment Fund      —           72,851   
           

 

 

 
           —           445,636   
           

 

 

 
   U.S. Government and Government Agency Issues      
   California St    3.0% 01 Dec 2042      —           12,470   
   Contra Costa Ca Cmnty Clg Dist    3.0% 01 Apr 2043      —           13,804   
   Fannie Mae    0.25% 31 Dec 2015      —           125,623   
   Fannie Mae    1.0% 31 Aug 2016      —           171,465   
   Fed HM LN PC Pool 1L1358    6.0% 01 Jun 2035      —           23,805   
   Fed HM LN PC Pool 1Q0669    4.5% 01 Feb 2099      —           1,654   
   Fed HM LN PC Pool 1Q1159    5.0% 01 Dec 2099      —           14,925   
   Fed HM LN PC Pool A89385    4.0% 01 Dec 2099      —           65,062   
   Fed HM LN PC Pool C09004    5.5% 01 Jul 2035      —           8,864   
   Fed HM LN PC Pool G01843    5.75% 01 Mar 2017      —           14,376   
   Fed HM LN PC Pool G03205    3.5% 01 Dec 2099      —           2,817   
   Fed HM LN PC Pool G03737    5.0% 01 Aug 2038      —           15,075   
   Fed HM LN PC Pool G08542    2.625% 20 Nov 2014      —           76,416   
   Fed HM LN PC Pool G12743    0.875% 20 Dec 2017      —           3,450   
   Fed HM LN PC Pool J16933    1.0% 01 May 2036      —           979   
   Fed HM LN PC Pool J18615    1.0% 01 Nov 2037      —           603   
   Fed HM LN PC Pool J18702    1.0% 01 May 2038      —           3,164   
   Fed HM LN PC Pool J18832    4.5% 01 Oct 2039      —           402   
   Fed HM LN PC Pool J19087    3.5% 01 Jul 2042      —           382   
   Fed HM LN PC Pool Q03572    6.5% 01 Nov 2037      —           70,928   
   Fed HM LN PC Pool Q11095    4.0% 01 Aug 2043      —           71,323   
   Federal Farm Credit Bank    4.875% 13 Jun 2018      —           23,192   
   Federal Home Loan Mortgage Cor    3.5% 01 Jul 2042      —           41,522   
   Federal Natl Mtg Assn    5.5% 01 Jan 2038      —           39,363   
   Florida St Hurricane Catastrop Flsgen    5.5% 01 Apr 2034      —           25,002   
   FNMA TBA Jan 30 Single Fam    1.0% 01 Feb 2039      —           48,268   
   FNMA TBA Jan 30 Single Fam    3.5% 01 Dec 2042      —           28,395   

 

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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  

FNMA Conv 15Yr TBA

   5.0% 01 Aug 2024      —           54,555   
  

FNMA Pool 254693

   2.42% 01 Apr 2017      —           4,867   
  

FNMA Pool 725222

   4.6% 26 May 2015      —           6,347   
  

FNMA Pool 725423

   1.0% 25 Jul 2025      —           4,726   
  

FNMA Pool 725424

   4.0% 07 Oct 2019      —           2,172   
  

FNMA Pool 725690

   3.0% 01 Mar 2027      —           1,957   
  

FNMA Pool 725946

   3.375% 15 Apr 2023      —           5,745   
  

FNMA Pool 735141

   6.375% 15 Jul 2019      —           0   
  

FNMA Pool 735667

   3.0% 01 Apr 2027      —           38,678   
  

FNMA Pool 735676

   3.0% 01 May 2027      —           10,956   
  

FNMA Pool 743132

   4.0% 01 Sep 2041      —           11,749   
  

FNMA Pool 745275

   3.5% 01 Sep 2042      —           33,691   
  

FNMA Pool 745327

   3.875% 16 Jul 2015      —           0   
  

FNMA Pool 756363

   1.0% 31 Mar 2030      —           3,287   
  

FNMA Pool 770946

   1.0% 29 Sep 2014      —           8,209   
  

FNMA Pool 776971

   4.0% 01 Dec 2099      —           8,565   
  

FNMA Pool 831540

   3.5% 01 Dec 2099      —           10,931   
  

FNMA Pool 844444

   2.995% 01 Jul 2020      —           14,026   
  

FNMA Pool 888340

   2.5% 01 Dec 2099      —           9,882   
  

FNMA Pool 888521

   5.0% 01 Jul 2031      —           5,793   
  

FNMA Pool 889004

   5.0% 01 Feb 2043      —           8,337   
  

FNMA Pool 889361

   4.5% 20 Jan 2022      —           0   
  

FNMA Pool 914789

   5.5% 01 Apr 2033      —           26,874   
  

FNMA Pool 931745

   5.5% 01 Feb 2034      —           47,471   
  

FNMA Pool 986148

   5.5% 01 May 2034      —           34,560   
  

FNMA Pool AD8529

   0.10% 06 Feb 2014      —           12,539   
  

FNMA Pool AK2989

   5.5% 01 Aug 2022      —           35,481   
  

FNMA Pool AL0139

   3.0% 01 Oct 2026      —           15,021   
  

FNMA Pool AL2891

   0.01% 14 Jan 2014      —           51,230   
  

FNMA Pool AO5515

   3.0% 01 Apr 2027      —           10,639   
  

FNMA Pool AQ5046

   0.01% 20 Jan 2014      —           971   
  

FNMA Pool AR6071

   5.0% 15 Nov 2038      —           634   
  

FNMA TBA 30Yr Single Family

   4.5% 01 Aug 2040      —           134,014   
  

FNMA TBA Single Family Mortgage

   3.0% 01 May 2027      —           29,412   
  

Freddie Mac

   1.5% 31 Dec 2018      —           112,102   
  

Illinois St

   0.25% 31 Aug 2014      —           37,596   
  

Japan Treasury Disc Bill

   2.75% 15 Nov 2023      —           48,727   
  

Japan Treasury Disc Bill

   0.625% 15 Nov 2016      —           41,033   
  

Met Transprtn Auth NY

   0.125% 15 Apr 2016      —           14,267   
  

North Carolina State Education

   6.0% 01 Aug 2034      —           38,997   
  

Province of Ontario

   0.125% 30 Apr 2015      —           55,880   
  

Province of Quebec

   1.75% 31 Oct 2020      —           33,962   
  

Republic Of Indonesia

   0.1% 20 Mar 2014      —           6,227   
  

Republic Of Poland

   5.0% 01 Nov 2039      —           1,260   
  

Republic Of Poland

   1.25% 30 Nov 2018      —           12,155   
  

Russia Foreign Bond

   3.625% 15 Feb 2020      —           4,914   
  

Sacramento City

   2.5% 30 Apr 2015      —           13,752   
  

San Antonio Tx Elec Gas Reve

   1.875% 30 Jun 2015      —           13,576   
  

State of Qatar

   1.875% 30 Apr 2014      —           7,989   

 

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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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  

Treasury Bill

   5.5% 01 Nov 2034      —           103,092   
  

Treasury Bill

   1.5% 31 Aug 2018      —           1,047,065   
  

Tsy Infl Ix N/B

   0.25% 15 Oct 2015      —           106,643   
  

Univ Of Massachusetts Ma Bldg Umafac

   2.5% 15 Aug 2023      —           13,872   
  

US Treasury N/B

   5.5% 01 Jan 2035      —           45,634   
  

US Treasury N/B

   5.0% 01 Jul 2035      —           158,457   
  

US Treasury N/B

   5.0% 01 Jul 2035      —           106,207   
  

US Treasury N/B

   5.0% 01 Oct 2018      —           200,908   
  

US Treasury N/B

   5.0% 01 Feb 2036      —           53,007   
  

US Treasury N/B

   6.0% 01 Mar 2036      —           42,239   
  

US Treasury N/B

   1.0% 01 Dec 2033      —           168,146   
  

US Treasury N/B

   5.0% 01 Apr 2034      —           9,944   
  

US Treasury N/B

   5.0% 01 Apr 2034      —           86,279   
  

US Treasury N/B

   6.0% 01 Jun 2036      —           33,745   
  

US Treasury N/B

   5.0% 01 Dec 2035      —           127,008   
  

US Treasury N/B

   5.0% 01 Aug 2036      —           61,346   
  

US Treasury N/B

   1.0% 01 Mar 2034      —           52,452   
  

US Treasury N/B

   1.0% 01 Aug 2037      —           213,812   
  

US Treasury N/B

   6.0% 01 Mar 2038      —           41,137   
  

US Treasury N/B

   5.0% 01 Apr 2037      —           51,058   
  

US Treasury N/B

   1.375% 30 Sep 2018      —           524,898   
  

US Treasury N/B

   0.875% 4/30/20 17      —           75,158   
  

US Treasury N/B

   0.75% 31 Oct 2017      —           68,835   
  

US Treasury N/B

   1.625% 15 Nov 2022      —           539,158   
  

US Treasury N/B

   1.75% 15 May 2023      —           157,098   
  

US Treasury N/B

   0.25% 31 May 2015      —           38,531   
  

US Treasury N/B

   6.5% 15 Nov 2026      —           1,620   
  

US Treasury N/B

   2.125% 31 May 2015      —           1,007,954   
  

US Treasury N/B

   1.75% 31 May 2016      —           266,961   
  

US Treasury N/B

   0.25% 31 Jan 2014      —           873,748   
  

US Treasury N/B

   1.375% 31 Jul 2018      —           400,425   
           

 

 

 
            $ 8,665,522   
           

 

 

 
  

Corporate and Other Obligations

        
  

21st Century Fox America Company

   4.5% 15 Feb 2021      —           11,124   
  

ABN AMRO Bank N.V.

   2.5% 30 Oct 2018      —           13,120   
  

ABN AMRO Bank N.V.

   4.25% 02 Feb 2017      —           11,559   
  

ABN AMRO Bank N.V.

   2.5% 30 Oct 2018      —           14,727   
  

Ace Ina Holdings Company

   5.6% 15 May 2015      —           5,319   
  

Agilent Technologies Inc

   6.5% 01 Nov 2017      —           15,768   
  

Alcoa Inc

   6.75% 15 Jul 2018      —           12,909   
  

Allegheny Technologies

   5.87% 15 Aug 2023      —           14,973   
  

Allegheny Technologies

   5.95% 15 Jan 2021      —           3,356   
  

Allied World Assurance

   7.5% 01 Aug 2016      —           5,106   
  

Ally Auto Receivables Trust

   0.72% 20 May 2016      —           21,088   
  

Ally Master Owner Trust

   1.54% 15 Sep 2019      —           33,587   
  

Ally Master Owner Trust

   1.0% 15 Feb 2018      —           13,761   

 

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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Ally Master Owner Trust    1.0% 15 Feb 2018      —           19,293   
  

Altria Group Inc

   4.75% 05 May 2021      —           24,588   
  

Amazon.Com Inc

   0.65% 27 Nov 2015      —           27,212   
  

America Movil

   3.625% 30 Mar 2015      —           19,899   
  

American Express

   0.59% 15 May 2018      —           16,031   
  

American Express

   0.68% 15 Mar 2018      —           29,029   
  

American Intl Group

   4.875% 15 Sep 2016      —           15,543   
  

American Intl Group

   5.45% 18 May 2017      —           12,051   
  

American Intl Group

   3.8% 22 Mar 2017      —           6,045   
  

American Intl Group

   4.875% 01 Jun 2022      —           8,692   
  

American Intl Group

   6.4% 15 Dec 2020      —           27,078   
  

American Tower Corp

   5.05% 01 Sep 2020      —           10,974   
  

Americredit Automobile Receivables

   0.96% 09 Jan 2017      —           16,095   
  

Americredit Automobile Receivables

   0.49% 08 Apr 2016      —           6,667   
  

Americredit Automobile Receivables

   0.92% 09 Apr 2018      —           18,194   
  

Americredit Automobile Receivables

   0.96% 09 Apr 2018      —           7,559   
  

Americredit Automobile Receivables

   1.55% 08 Jul 2016      —           19,476   
  

Anadarko Petroleum Corp

   6.375% 15 Sep 2017      —           24,757   
  

Aon Plc

   3.5% 30 Sep 2015      —           13,644   
  

Apple Inc

   1.0% 03 May 2018      —           10,295   
  

Asciano Finance

   3.125% 23 Sep 2015      —           13,369   
  

AT&T Inc

   5.8% 15 Feb 2019      —           12,669   
  

AT&T Inc

   1.0% 27 Nov 2018      —           20,642   
  

Baidu Inc

   2.25% 28 Nov 2017      —           5,434   
  

Baidu Inc

   3.25% 06 Aug 2018      —           8,038   

*

  

Bank of America

   6.4% 28 Aug 2017      —           27,037   

*

  

Bank of America

   6.875% 25 Apr 2018      —           6,852   

*

  

Bank of America

   6.0% 01 Sep 2017      —           20,774   

*

  

Bank of America

   1.0% 15 Jan 2019      —           25,672   

*

  

Bank of America

   5.65% 01 May 2018      —           4,142   

*

  

Bank of America

   7.625% 01 Aug 2019      —           5,684   

*

  

Bank of America

   5.625% 01 Jul 2020      —           26,028   

*

  

Bank of America

   5.7% 24 Jan 2022      —           1,068   

*

  

Bank of America

   3.875% 22 Mar 2017      —           3,452   

*

  

Bank of America

   5.42% 15 Mar 2017      —           8,890   

*

  

Bank of America

   5.49% 15 Mar 2019      —           26,856   

*

  

Bank of America

   6.1% 15 Jun 2017      —           9,726   

*

  

Bank of America

   3.75% 12 Jul 2016      —           12,752   

*

  

Bank of America

   2.6% 15 Jan 2019      —           8,393   

*

  

Bank of America

   6.05% 18 May 2016      —           12,011   

*

  

Bank of America

   6.875% 25 Apr 2018      —           4,781   

*

  

Bank of America

   1.03% 15 Dec 2016      —           10,729   
  

Barclays Bank

   5.125% 08 Jan 2020      —           11,208   
  

Barrick NA Finance LLC

   4.4% 30 May 2021      —           21,022   
  

Barrick NA Finance LLC

   4.4% 30 May 2021      —           4,905   

*

  

Baxter International Inc

   1.85% 15 Jan 2017      —           5,994   
  

BBVA US

   4.664% 09 Oct 2015      —           26,495   
  

Bear Stearns Commercial Mortgage

   1.0% 11 Jun 2040      —           30,682   
  

Bear Stearns Commercial Mortgage

   1.0% 11 Sep 2038      —           7,513   

 

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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Bear Stearns Commercial Mortgage    1.0% 11 Sep 2038      —           1,578   
  

Bear Stearns Commercial Mortgage

   5.533% 12 Oct 2041      —           175   
  

Bear Stearns Commercial Mortgage

   1.0% 12 Jan 2045      —           21,951   
  

Bear Stearns Cos LLC

   7.25% 01 Feb 2018      —           24,368   
  

Berkshire Hathaway Fin

   1.6% 15 May 2017      —           18,370   
  

BNP Paribas

   2.4% 12 Dec 2018      —           25,528   
  

Boston Properties L P

   3.7% 15 Nov 2018      —           7,535   
  

BP Capital Markets Plc

   1.846% 05 May 2017      —           25,864   
  

BP Capital Markets Plc

   4.5% 01 Oct 2020      —           13,105   
  

BP Capital Markets Plc

   1.375% 06 Nov 2017      —           10,087   
  

BPCE SA

   5.7% 22 Oct 2023      —           7,349   
  

British Telecom Plc

   1.625% 28 Jun 2016      —           11,421   
  

British Telecom Plc

   1.625% 28 Jun 2016      —           13,324   
  

Bunge Limited Finance Co

   8.5% 15 Aug 2019      —           8,312   
  

Burlingtn North Santa Fe

   5.75% 15 Mar 2018      —           8,297   
  

Canadian National Railways Co

   1.45% 15 Dec 2018      —           25,789   
  

Capital Auto Receivables

   0.79% 20 Jun 2017      —           12,511   
  

Capital One

   5.25% 21 Feb 2017      —           11,075   
  

Capital One

   1.0% 15 Mar 2017      —           15,506   
  

Capital One

   1.5% 22 Mar 2018      —           36,698   
  

Carmax Auto Owner Trust

   0.84% 15 Mar 2017      —           43,691   
  

Carmax Auto Owner Trust

   0.89% 15 Sep 2016      —           11,847   
  

Carmax Auto Owner Trust

   1.41% 16 Feb 2016      —           21,430   
  

Caterpillar Financial

   1.0% 25 Nov 2018      —           26,397   
  

CBS Corp

   8.875% 15 May 2019      —           5,859   
  

CBS Corp

   5.75% 15 Apr 2020      —           7,716   
  

CD Commercial Mortgage Trust

   5.322% 28 Jun 2016      —           41,326   
  

Cellco Part/Veri Wirelss

   8.5% 15 Nov 2018      —           11,604   
  

Centerpoint Energy Resources

   4.5% 15 Jan 2021      —           2,875   
  

CF Industries Inc

   7.125% 01 May 2020      —           24,960   
  

Chase

   1.3% 18 Feb 2020      —           12,437   
  

CIT Equipment Collateral

   1.1% 22 Aug 2016      —           5,017   
  

CIT Equipment Collateral

   1.13% 20 Jul 2020      —           12,690   
  

Citifinancial Mortgage

   1.0% 25 Jan 2033      —           1,536   
  

Citigroup Commercial Mortgage

   1.0% 10 Dec 2049      —           12,058   
  

Citigroup Commercial Mortgage

   5.431% 15 Oct 2045      —           6,764   
  

Citigroup Commercial Mortgage

   1.0% 15 Mar 2049      —           7,834   
  

Citigroup Inc

   5.375% 09 Aug 2020      —           13,186   
  

Citigroup Inc

   4.5% 14 Jan 2022      —           13,283   
  

Citigroup Inc

   6.01% 15 Jan 2015      —           16,350   
  

Citigroup Inc

   5.375% 09 Aug 2020      —           12,143   
  

Citigroup Inc

   4.5% 14 Jan 2022      —           21,081   
  

Cleveland Electric

   5.7% 01 Apr 2017      —           6,074   
  

CNH Equipment Trust

   0.63% 17 Jan 2017      —           10,409   
  

CNH Equipment Trust

   0.49% 15 Mar 2017      —           12,735   
  

CNH Equipment Trust

   0.94% 15 May 2017      —           7,451   
  

CNH Equipment Trust

   1.74% 17 Jan 2017      —           13,501   
  

Coca Cola Co

   3.3% 01 Sep 2021      —           37,797   
  

Coca Cola Co

   3.2% 01 Nov 2023      —           25,926   

 

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, 2013

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  

Comcast Corp

   5.15% 01 Mar 2020      —           9,171   
  

Comcast Corp

   4.95% 15 Jun 2016      —           4,856   
  

Comcast Corp

   6.5% 15 Jan 2017      —           5,404   
  

Comm Mortgage Trust

   3.147% 15 Aug 2045      —           6,378   
  

Comm Mortgage Trust

   1.0% 10 Jul 2045      —           26,806   
  

Comm Mortgage Trust

   1.0% 10 Oct 2046      —           22,670   
  

Comm Mortgage Trust

   1.8726% 12 Apr 2035      —           6,508   
  

Comm Mortgage Trust

   3.689% 10 Aug 2046      —           25,403   
  

Conagra Foods Inc

   1.9% 25 Jan 2018      —           28,578   
  

Cons Edison Co

   5.3% 01 Dec 2016      —           24,122   
  

Constellation Energy

   5.15% 01 Dec 2020      —           2,495   
  

Consumers Energy

   6.12% 15 Mar 2019      —           8,744   
  

Countrywide Finl Corp

   6.25% 15 May 2016      —           2,171   
  

Coventry Health Care Inc

   6.125%1/15/2015      —           854   
  

Coventry Health Care Inc

   5.95%3/15/2017      —           2,590   
  

Coventry Health Care Inc

   6.3%8/15/2014      —           7,254   
  

Cox Communications Inc

   6.2% 01 Jun 2018      —           24,903   
  

Crane Co

   2.75% 15 Dec 2018      —           4,292   
  

Credit Based Asset Servicing

   1.0% 25 Jan 2033      —           3,254   
  

Credit Suisse

   6.5% 08 Aug 2023   </