SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 11-K

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

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

For the transition period from                         to                       

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
(847) 948-2000

 

 

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Financial Statements and Supplemental Schedule
December 31, 2009 and 2008

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Index
December 31, 2009 and 2008

		Page(s)
Report of Independent Registered Public Accounting Firm			1
Prior Auditor’s Report of Independent Registered Public Accounting Firm			2
Financial Statements
Statements of Net Assets Available for Benefits as of December 31, 2009 and 2008			3
Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 2009 and 2008			4
Notes to Financial Statements			5 - 15
Supplemental Information
Schedule I: Schedule of Assets (Held at End of Year) as of December 31, 2009			16 - 46

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 statement of net assets available for benefits of the Baxter Healthcare of Puerto Rico Savings and Investment Plan (Plan) as of December 31, 2009, and the related statement of changes in net assets available for benefits for the year 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 audit.

We conducted our audit 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 audit provides 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, 2009, and the changes in net assets available for benefits for the year 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 2009 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2009 financial statements taken as a whole.

/s/ Crowe Horwath LLP

Oak Brook, Illinois

June 25, 2010

Prior Auditor’s Report of Independent Registered Public Accounting Firm

To the Participants and Administrative Committee of the
Baxter Healthcare of Puerto Rico Savings and Investment Plan

In our opinion, the accompanying statement of net assets available for benefits and the related statement of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Baxter Healthcare of Puerto Rico Savings and Investment Plan (the Plan) at December 31, 2008, and the changes in net assets available for benefits for the year then ended in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

June 26, 2009

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Statements of Net Assets Available for Benefits
December 31, 2009 and 2008

		2009				2008
Assets
Investments
Cash and cash equivalents		$	822,088			$	1,192,562
Common stock (including securities on loan of $349,862 in 2009 and $222,187 in 2008)			9,234,270				8,360,547
U.S. government and government agency issues (including securities on loan of $101,159 in 2009 and $16,563 in 2008)			173,832				190,754
Corporate and other obligations (including securities on loan of $62,435 in 2009 and $31,222 in 2008)			458,968				502,407
Commingled funds			6,367,830				5,105,055
Registered investment companies			457,690				80,293
Participant loans			3,858,465				3,806,521
Synthetic guaranteed investment contracts (including securities on loan of $3,928,786 in 2009 and $1,705,032 in 2008)			14,786,178				13,551,910
Collateral held on loaned securities			4,478,307				1,872,925
Total investments at fair value			40,637,628				34,662,974
Receivables
Sponsor contributions			159,880				65,318
Accrued interest and dividends			44,135				46,349
Due from brokers for securities sold			6,943				478
			210,958				112,145
Total assets			40,848,586				34,775,119
Liabilities
Accounts payable			46,857				74,255
Due to brokers for securities purchased			17,920				6,156
Collateral to be paid on loaned securities			4,550,430				2,028,951
Total liabilities			4,615,207				2,109,362
Net assets available for benefits, reflecting investments at fair value			36,233,379				32,665,757
Adjustment from fair value to contract value for fully benefit-responsive investment contracts			(116,408	)			(534,566	)
Net assets available for benefits		$	36,116,971			$	32,131,191

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

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2009 and 2008

		2009				2008
Additions (reductions) to net assets attributed to
Investment income (loss)
Net appreciation (depreciation) in fair value of investments		$	2,729,952			$	(5,928,468	)
Interest and dividends			718,839				1,103,788
Participant loan interest			244,843				274,112
Net investment income (loss)			3,693,634				(4,550,568	)
Contributions
Sponsor			1,469,130				1,392,707
Participant			2,655,257				2,737,572
			4,124,387				4,130,279
Net additions (reductions)			7,818,021				(420,289	)
Deductions from net assets attributed to
Benefits paid			3,612,147				2,751,320
Plan expenses			220,094				458,367
Total deductions			3,832,241				3,209,687
Net increase (decrease)			3,985,780				(3,629,976	)
Net assets available for benefits
Beginning of year			32,131,191				35,761,167
End of year		$	36,116,971			$	32,131,191

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

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

1.		General Description of the Plan
		The following brief description of Baxter Healthcare of Puerto Rico Savings and Investment Plan (the Plan) is provided for general information purposes only. Participants should refer to the Plan agreement 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).
		General The Plan is a defined contribution plan which became effective on January 1, 1998. The Plan covers substantially all employees of Baxter Healthcare S.A. (Puerto Rico Branch), and Baxter Sales and Distribution Corporation (collectively, the Sponsor or the Company), subsidiaries of Baxter International Inc. (Baxter) as of the first day of the month following the completion of thirty days of employment. The Plan was created for the purpose of providing retirement benefits to employees and to encourage and assist employees in adopting a regular savings program by means of payroll deductions through a plan that qualifies under the applicable laws of the Commonwealth of Puerto Rico and the United States Internal Revenue Code.
		Contributions Plan participants may authorize the Company to make payroll deductions under the Plan ranging from 1% to 10% and 1% to 50% of their pre-tax monthly compensation in 2008 and 2009, respectively, limited to a maximum of $8,000 and $9,000 a year in 2008 and 2009, respectively. Newly hired employees are deemed to have elected to contribute 3% of compensation unless they make a contrary election. The Company matches a participant’s savings contributions at the rate of 50 cents for each dollar of a participant’s pre-tax contribution, up to a maximum of 6% of a participant’s compensation. The Company also contributes an additional non-matching 3% of compensation for employees that are not eligible to participate in the Company’s Puerto Rico defined benefit pension plan, which includes all new employees hired on or after January 1, 2008. The Company may make additional discretionary contributions in such amounts as the Company may determine.
		Participant Accounts Each participant’s account is credited with the participant’s contribution and allocations of the Company’s contributions and Plan earnings, and is charged with his or her withdrawals and an allocation of Plan-related expenses. Allocations are based on participant earnings or account balances, as defined in the Plan document. The net income of the Plan is posted to the participant’s accounts on a daily basis. Each participant directs the investment of his or her account to any of the investment options available under the Plan.
		Vesting Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Company’s matching and discretionary contributions plus actual earnings thereon is based on years of service. The contributions vest in accordance with the following vesting schedule:

Years of Service		Vesting %
1			20	%
2			40	%
3			60	%
4			80	%
5 or more			100	%

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

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

		Participant Loans 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. Principal and interest are paid through monthly payroll deductions.
		Investment Options Upon enrollment in the Plan, a participant may direct contributions into various investment options: Stable Income Fund, Baxter Common Stock Fund, Composite Fund, General Equity Fund, S&P 500 Flagship Fund, International EAFE Equity Index Fund, Small Cap Fund and ten different Target Retirement Funds. However, non-matching contributions may not be invested in the Baxter Common Stock Fund. In addition, certain participants maintain shares in Edwards Lifesciences Corporation. These shares were placed into the Edwards Lifesciences Common Stock Fund in connection with Baxter’s 2000 spin-off of its cardiovascular business. Participants are not able to make contributions or transfer existing account balances to the Edwards Lifesciences Common Stock Fund, but may make transfers out of these funds at any time.
		Payments of Benefits Plan participants can not request withdrawals from the Plan unless they are at least 591/2 years old or incur a financial hardship. On termination of service due to retirement or other reasons, a participant may elect to receive either a lump sum amount equal to their entire vested account balance or installment payments. In the case of a participant termination because of death or disability, the entire vested amount is paid to the person or persons legally entitled thereto.
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.
		Issued But Not Yet Effective Accounting Standard In January 2010, the Financial Accounting Standards Board (FASB) issued a new accounting standard to improve disclosures with respect to fair value measurements, primarily related to the levels within the fair value hierarchy. An entity will be required to disclose significant transfers in and out of Levels 1 and 2 of the fair value hierarchy, and separately present information related to purchases, sales, issuances and settlements in the reconciliation of fair value measurements classified as Level 3. This standard will be effective for reporting periods beginning after December 15, 2009, except for the disclosures related to purchases, sales, issuances and settlements for Level 3 fair value measurements, which are effective for reporting periods beginning after December 15, 2010. The disclosures required by this standard will be included in the notes to the Plan’s financial statements effective January 1, 2010, except for the disclosures related to Level 3 fair value measurements, which will be included in the notes to the Plan’s financial statements effective January 1, 2011.
		New Accounting Standard In April 2009, the FASB issued a new accounting standard related to estimating fair value when the volume and level of activity for an investment has significantly decreased. This standard also requires enhanced disclosures regarding the major security types of equity and debt securities and was effective for the Plan reporting period ending December 31, 2009. The Plan’s adoption of this standard did not have an impact on the net assets available for benefits. Refer to Note 4 for disclosures related to this standard.

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

		In September 2009, the FASB issued a new accounting standard related to the valuation of investments in certain entities that calculate net asset value per share. This standard provides a practical expedient for measuring the fair values of Plan investments in entities that calculate a net asset value per share (such as commingled investments). This standard also requires enhanced disclosures regarding the attributes of certain investments, including the nature of any restrictions and the investment objectives, and was effective for the Plan reporting period ending December 31, 2009. The Plan’s adoption of this standard did not have an impact on the net assets available for benefits. Refer to valuation of investments and collateral below for disclosures related to this standard.
		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 and international 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.
Commingled funds		Value based on net asset values reported by the fund managers as of the financial statement dates and recent transaction prices. The investment objectives of these funds are to track the performances of the S&P 500 (S&P 500 Flagship Fund); Europe, Australasia and the Far East (EAFE) (International EAFE Equity Index Fund); or Russell 2000 (Small Cap Fund) indexes. The underlying investments vary, with some holding diversified portfolios of domestic stocks and government and government agency bonds, and others holding collective investment funds. Each fund provides for daily redemptions by the Plan at reported net asset values per share, with no advance notice requirement. Refer to Note 5 for amounts invested in each of these funds.
Registered investment companies		Value based on the last reported sale price from a national security exchange on the valuation date.
Participant loans		Value based on outstanding principal balance plus accrued interest, which approximates fair value.

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

Synthetic guaranteed investment contracts		Value based on the fair value of the underlying securities in the contract on the valuation date plus the fair value of wrapper contracts, which is calculated using a replacement cost approach. See below for more information.
Collateral held on loaned securities		Value based upon the net asset value per unit of the short-term investment fund (Quality D Short-Term Investment Fund) where the collateral is invested. This fund primarily invests in cash and cash equivalents and asset-backed securities, and is utilized for the investment of cash collateral generated by the securities lending program in which the Plan and Custodian participate. At December 31, 2009, the maturity dates of these securities were less than 90 days. Refer to Note 6 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 appreciation or depreciation of investments. Purchases and sales of investments are recorded on a trade date basis. Dividends are recorded on the ex-dividend date.
		The financial statements reflect the net appreciation or depreciation in the fair value of the Plan’s investments. This net appreciation or depreciation consists of realized gains and losses calculated as the difference between proceeds from a sales transaction and cost determined on a moving average basis, and unrealized gains and losses calculated as the change in the fair value between beginning of the year (or purchase date if later) and the end of the year.
		Synthetic Guaranteed Investment Contracts The Plan holds synthetic guaranteed investment contracts (GICs) as part of the Stable Income Fund. The synthetic GICs provide for a fixed return on principal over a specified time through fully benefit-responsive contracts issued by Aegon Institutional Markets and Bank of America N.A. The portfolio of assets, overall of investment grade, underlying the synthetic GICs primarily includes cash and cash equivalents, U.S. government and government agency issues, corporate and other obligations, and registered investment companies.
		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 $37,348 and $30,386 at December 31, 2009 and 2008, 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 Statement 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 $14,669,770 and $13,017,344 at December 31, 2009 and 2008, respectively.

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

		The crediting interest rate, which is reset quarterly, can never fall below zero. The crediting rate formula smoothes the impact of interest rate changes on participant returns by amortizing any difference between market value and book value over a period of years equal to the duration of the portfolio benchmark. The average yield on the synthetic GICs was approximately 4.2% and (0.18)% at December 31, 2009 and 2008, respectively. The average interest rate credited to participants on the synthetic GICs was approximately 4.1% and 4.82%, respectively, for the years ended December 31, 2009 and 2008. The credit ratings for Aegon Institutional Markets were AA- and AA at December 31, 2009 and December 31, 2008, respectively, and the credit ratings for Bank of America N.A. were A+ and AA- at December 31, 2009 and December 31, 2008, respectively.
		Events that lead to market value withdrawals that exceed 20 percent of the contract value would limit the ability of the Plan to transact at contract value with participants. These events include restructurings, early retirement plans, divestitures, bankruptcies, or legal, tax or regulatory changes. The Plan sponsor believes that the occurrence of any such event is remote.
		The wrapper providers can only terminate at a value different than contract value under an event of default (that was not remedied) such as failure to follow the terms of the contract. If a wrapper provider would like to exit the contract for another reason, the Plan can maintain the contract through an extended termination process designed to ensure continued benefit-responsive treatment for withdrawals.
		Payment of Benefits Benefits are recorded when paid.
		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 or due to brokers for securities sold or purchased, respectively, represent the net cash value of security trades initiated but not yet settled at each respective year-end.
		Risks and Uncertainties The Plan provides for various investment options which invest in any combination of registered investment companies, U.S. government and government agency issues, corporate and other obligations, common stock, commingled funds, synthetic guaranteed investment contracts and short-term investments. Investment securities are exposed to various risks, such as interest rate, market, liquidity and credit risks. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefits and the Statements of Changes in Net Assets Available for Benefits. Individual participants’ accounts bear the risk of loss resulting from fluctuations in investment values.

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

		Investments underlying the Plan’s synthetic GICs include securities with contractual cash flows, such as asset-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities, including securities backed by subprime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate values, delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.
3.		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 is responsible for the general administration of the Plan and for carrying out the provisions thereof. 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.
		Substantially all investment manager, trustee and administrative fees incurred in the administration of the Plan were paid from the assets of the Plan.
4.		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.

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

 

The following table summarizes 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
						Quoted Prices				Significant
						in Active				Other				Significant
		Balance at				Markets for				Observable				Unobservable
		December 31,				Identical Assets				Inputs				Inputs
		2009				(Level 1)				(Level 2)				(Level 3)
Assets
Cash and cash equivalents		$	822,088			$	—			$	822,088			$	—
Common stock:
Healthcare			6,999,058				6,999,058				—				—
Information technology			601,728				601,728				—				—
Financial services			487,364				487,364				—				—
Consumer products			386,373				386,373				—				—
Industrial services and materials			329,703				329,703				—				—
Energy			327,365				327,365				—				—
Other			102,679				102,679				—				—
Total common stock			9,234,270				9,234,270				—				—
U.S. government and government agency issues			173,832				—				173,832				—
Corporate and other obligations			458,968				—				458,968				—
Commingled funds			6,367,830				—				6,367,830				—
Registered investment companies (1)			457,690				457,690				—				—
Participant loans			3,858,465				—				—				3,858,465
Synthetic guaranteed investment contracts:
Corporate and other obligations			6,722,232				—				6,722,232				—
U.S. government and government agency issues			6,398,827				—				6,398,827				—
Cash and cash equivalents			936,533				—				936,533				—
Registered investment companies			682,519				682,519				—				—
Wrapper contracts			37,348				—				—				37,348
Other			8,719				—				8,719				—
Total synthetic guaranteed investment contracts			14,786,178				682,519				14,066,311				37,348
Collateral held on loaned securities			4,478,307				—				4,478,307				—
Total assets		$	40,637,628			$	10,374,479			$	26,367,336			$	3,895,813
Liability
Collateral to be paid on loaned securities		$	4,550,430			$	520,531			$	4,029,899			$	—

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

 

The following table summarizes 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
						Quoted Prices				Significant
						in Active				Other				Significant
		Balance at				Markets for				Observable				Unobservable
		December 31,				Identical Assets				Inputs				Inputs
		2008				(Level 1)				(Level 2)				(Level 3)
Assets
Cash and cash equivalents		$	1,192,562			$	—			$	1,192,562			$	—
Common stock			8,360,547				8,360,547				—				—
U.S. government and government agency issues			190,754				—				190,754				—
Corporate and other obligations			502,407				—				502,407				—
Commingled funds			5,105,055				—				5,105,055				—
Registered investment companies			80,293				80,293				—				—
Participant loans			3,806,521				—				—				3,806,521
Synthetic guaranteed investment contracts			13,551,910				878,625				12,642,899				30,386
Collateral held on loaned securities			1,872,925				—				1,872,925				—
Total assets		$	34,662,974			$	9,319,465			$	21,506,602			$	3,836,907
Liability
Collateral to be paid on loaned securities		$	2,028,951			$	290,411			$	1,738,540			$	—

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

		Participant				Wrapper
		Loans				Contracts
Balance at December 31, 2007		$	3,287,051			$	—
Unrealized gains			—				30,386
Purchases, sales, issuances and settlements (net)			519,470				—
Balance at December 31, 2008		$	3,806,521			$	30,386
Unrealized gains			—				6,962
Purchases, sales, issuances and settlements (net)			51,944				—
Balance at December 31, 2009		$	3,858,465			$	37,348

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.

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

 

5.		Investments
		The following presents the Plan’s investments that represent five percent or more of the Plan’s net assets available for benefits at December 31.

		2009				2008
Baxter common stock, 112,317 shares and 120,433 shares at December 31, 2009 and 2008, respectively		$	6,590,779			$	6,454,029
State Street Global Advisors (SSgA) S&P 500 Flagship Fund			3,422,686				2,862,574
SSgA International EAFE Equity Index Fund			1,852,514				*
State Street Bank Short-Term Investment Fund			*				1,666,021
State Street Bank Quality D Short-Term Investment Fund (Collateral held on loaned securities)			4,478,307				1,872,925
*     Does not meet 5% threshold.

Investments as of December 31, 2009 and 2008 are segregated into various investment fund options as follows:

		2009				2008
Cash (available for investment)		$	147,008			$	129,006
Stable Income Fund			15,270,296				14,404,857
Baxter Common Stock Fund			6,687,414				6,587,031
Composite Fund			1,677,295				1,360,505
General Equity Fund			1,638,024				1,266,877
SSgA S&P 500 Flagship Fund			3,422,686				2,867,205
SSgA International EAFE Equity Index Fund			1,853,385				1,396,409
Edwards Lifesciences Common Stock Fund			54,427				45,273
SSgA Small Cap Fund			1,092,631				846,072
Target Retirement Funds			457,690				80,293
Participant loans			3,858,465				3,806,521
Collateral held on loaned securities			4,478,307				1,872,925
Total investments at fair value			40,637,628				34,662,974
Adjustment from fair value to contract value for Stable Income Fund			(116,408	)			(534,566	)
Total investments		$	40,521,220			$	34,128,408

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

 

During 2009 and 2008, the Plan’s investments, including gains and losses on investments bought and sold as well as held during the year, appreciated (depreciated) in value as follows:

		2009				2008
Baxter common stock		$	548,403			$	(581,293	)
Other common stock			625,968				(1,557,508	)
U.S. government and government agency issues			1,193				4,641
Corporate and other obligations			89,302				(148,133	)
Commingled funds			1,317,282				(3,466,969	)
Registered investment companies			63,901				(23,180	)
Collateral held on loaned securities			83,903				(156,026	)
		$	2,729,952			$	(5,928,468	)

6.		Securities Lending Transactions
		The Plan participates in a securities lending program with the Custodian. The program allows the Custodian to loan securities, which are assets of the Plan, to approved brokers (the Borrowers).
		The Custodian requires the Borrowers, pursuant to a security loan agreement, to deliver collateral to secure each loan in an amount that is at least equal to the fair value of the securities loaned. The Plan bears the risk of loss with respect to any unfavorable change in fair value of the invested cash collateral. However, the Borrower bears the risk of loss related to the decrease in the fair value of the non-cash collateral and, therefore, would have to deliver additional securities to maintain the required collateral. In the event of default by the Borrower, the Custodian shall indemnify the Plan by purchasing replacement securities equal to the number of unreturned loaned securities, or, if replacement securities are not able to be purchased, the Custodian shall credit the Plan for the market value of the unreturned securities. In each case, the Custodian would apply the proceeds from the collateral for such a loan to make the Plan whole.
		The fair value of the investment of cash collateral received pursuant to securities lending transactions is reflected on the Statements of Net Assets Available for Benefits as an asset and the obligation to return the amount received is reflected as a liability.
		As of December 31, 2009 and 2008, the Plan had securities on loan with a fair market value of $4,442,242 and $1,975,004, respectively, with cash collateral received of $4,550,430 and $2,028,951, respectively. Cash collateral was invested in a short-term commingled investment fund as of December 31, 2009 and 2008. While as of December 31, 2009 and December 31, 2008 this fund was transacting on a dollar-for-dollar basis, the net asset value of the fund’s underlying securities was $0.9842 and $0.9231, respectively, per unit. As a result of this increase, an unrealized gain of $83,903 is reflected in the 2009 Statement of Changes in Net Assets Available for Benefits compared with an unrealized loss of $156,026 reported in 2008. As of December 31, 2009 and 2008, the cash collateral received is reflected at its fair value of $4,478,307 and $1,872,925, respectively, in the 2009 and 2008 Statements of Net Assets Available for Benefits.
		Non-cash collateral of $139,702 received for securities on loan at December 31, 2009 consisted of U.S. government and government agency issues held by the Custodian on behalf of the Plan. The Plan did not hold any non-cash collateral at December 31, 2008. Non-cash collateral is not included with the collateral balance on the 2009 Statement of Net Assets Available for Benefits because it may not be sold or repledged. A portion of the income generated upon investment of cash collateral is remitted to the Borrowers, and the remainder is allocated between the Plan and the Custodian in its capacity as a security agent. Securities lending income allocated to the Plan amounted to $732 and $21,335 for 2009 and 2008, respectively. Securities lending income is classified as interest income in the Statements of Changes in Net Assets Available for Benefits.

Baxter Healthcare of Puerto Rico
Savings and Investment Plan

Notes to Financial Statements
December 31, 2009 and 2008

 

7.		Plan Termination
		Although it has not expressed any intent to do so, the Plan sponsor has the right under the Plan to reduce, suspend or discontinue its contributions at any time and to terminate the Plan subject to the provisions of 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.
8.		Tax Status of the Plan
		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 1, 2003, from the Internal Revenue Service (IRS) stating that the Plan is in compliance with IRS regulations. The Plan has been amended since receiving the determination letter. The Plan Sponsor believes that the Plan is currently designed and being operated in compliance with the applicable tax requirements. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
9.		Related Parties
		Parties-in-interest are defined under Department of Labor regulations as any fiduciary of the Plan, any party rendering service to the Plan, the employer, and certain others.
		At December 31, 2009 and 2008, the Plan held shares of common stock and bonds of Baxter, the Plan sponsor’s parent; units of participation in certain commingled funds and short-term investment funds of State Street Bank and Trust Company, the Plan’s Custodian; loans with participants; 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 Aegon Institutional Markets, issuer of the Plan’s fully benefit-responsive contracts; and units of registered investment companies managed by Pacific Investment Management Company, 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-related 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.

SUPPLEMENTAL SCHEDULE

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		Schedule I
December 31, 2009

Identity of Issue				Description of Investment		Cost (1)				Current Value
Cash and Cash Equivalents:
*		State Street Bank & Trust Co		Short-Term Investment Fund			—				822,088
		Cash and cash equivalents								$	822,088
** Common Stock:
		Abbott Labs		Common Stock			—				13,880
		Ace Limited		Common Stock			—				2,422
		Aes Corp		Common Stock			—				11,813
		Aetna Inc		Common Stock			—				9,390
		Air Prods & Chems Inc		Common Stock			—				33,252
		AK STL Hldg Corp		Common Stock			—				4,773
		Alcon Inc		Common Stock			—				85,238
		Altria Group Inc		Common Stock			—				6,451
		Amazon Com Inc		Common Stock			—				11,127
		Ameriprise Finl Inc		Common Stock			—				7,029
		Aol Inc		Common Stock			—				1,348
		Apache Corp		Common Stock			—				6,804
		Apollo Group Inc		Common Stock			—				13,136
		Apple Inc		Common Stock			—				96,361
		Arcelormittal SA Luxembour		Common Stock			—				2,915
		Archer Daniels Midland Co		Common Stock			—				10,149
		AT&T Inc		Common Stock			—				31,331
		Baker Hughes Inc		Common Stock			—				13,076
*		Bank of America Corp		Common Stock			—				13,063
*		Bank of America Corp		Common Stock			—				9,460
*		Bank of America Corp		Common Stock			—				11,363
*		Baxter Intl Inc		Common Stock			—				6,590,779
		BB&T Corp		Common Stock			—				5,983
		Berkshire Hathaway Inc DEL		Common Stock			—				11,088
		Blackstone Group LP		Common Stock			—				25,018
		Boston Scientific Corp		Common Stock			—				11,700
		Broadcom Corp		Common Stock			—				9,913
		Bunge Limited		Common Stock			—				10,345
		Cameron Intl cOrp		Common Stock			—				20,324
		Carnival Corp		Common Stock			—				6,234
		Caterpillar Inc		Common Stock			—				3,822
		CBS Corp New		Common Stock			—				6,941
		Celgene Corp		Common Stock			—				14,937
		Chevron Corp		Common Stock			—				6,712
		Cimarex Energy Co		Common Stock			—				7,815
		Cisco Sys Inc		Common Stock			—				23,896
		Citigroup Inc		Common Stock			—				13,064

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		Schedule I
December 31, 2009

		CME Group Inc		Common Stock			—				15,734
		Coca Cola Co		Common Stock			—				9,493
		Comcast Corp New		Common Stock			—				13,135
		Comcast Corp New		Common Stock			—				13,795
		ConocoPhillips		Common Stock			—				29,455
		ConocoPhillips		Common Stock			—				12,045
		Constellation Brands Inc		Common Stock			—				3,775
		Cooper in Dustries Plc		Common Stock			—				21,257
		Corning Inc		Common Stock			—				6,691
		Costco Whsl Corp New		Common Stock			—				22,817
		Covidien Plc		Common Stock			—				13,811
		Credit Suisse Group		Common Stock			—				9,396
		D R Horton Inc		Common Stock			—				3,001
		Danaher Corp		Common Stock			—				25,469
		Dean Foods Co New		Common Stock			—				3,125
		Dell Inc		Common Stock			—				13,274
		Deutsche Bank AG		Common Stock			—				10,779
		Devon Energy Corporation		Common Stock			—				21,607
		Devon Energy Corporation		Common Stock			—				16,020
		Du Pont E I De Nemours		Common Stock			—				16,860
		Edwards Lifesciences Corp		Common Stock			—				53,511
		El Paso Corp		Common Stock			—				13,965
		Emc Corp		Common Stock			—				26,049
		Ensco International Spon A		Common Stock			—				3,170
		Eqt Corp		Common Stock			—				11,586
		Exelon Corp		Common Stock			—				15,295
		Fedex Corp		Common Stock			—				14,924
		Flextronics International		Common Stock			—				11,692
		Ford Mtr Co Del		Common Stock			—				7,120
		Franklin Res Inc		Common Stock			—				29,233
		Freeport Mcmoran Copper		Common Stock			—				28,180
		Garmin Ltd		Common Stock			—				3,191
		General Elec Co		Common Stock			—				15,068
		Genzyme Corp		Common Stock			—				13,257
		Gilead Sciences Inc		Common Stock			—				44,700
		Goldman Sachs Group Inc		Common Stock			—				85,085
		Goldman Sachs Group Inc		Common Stock			—				21,703
		Google Inc		Common Stock			—				97,607
		Hess Corp		Common Stock			—				18,191
		Hewlett Packard Co		Common Stock			—				51,432
		Home Depot Inc		Common Stock			—				5,691
		Huntsman Corp		Common Stock			—				2,940
		Illinois Tool Wks Inc		Common Stock			—				38,246

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		Schedule I
December 31, 2009

		Ingersoll Rand Plc		Common Stock			—				7,590
		Ingersoll Rand Plc		Common Stock			—				12,983
		Intel Corp		Common Stock			—				56,686
		Intuit		Common Stock			—				14,760
		Invesco Ltd		Common Stock			—				14,808
		JC Penney Inc		Common Stock			—				6,722
		Johnson Ctls Inc		Common Stock			—				23,140
		JP Morgan Chase & Co		Common Stock			—				71,274
		JP Morgan Chase & Co		Common Stock			—				14,252
		Kla Tencor Corp		Common Stock			—				14,187
		Kohls Corp		Common Stock			—				28,633
		Lam Resh Corp		Common Stock			—				5,873
		Limited Brands Inc		Common Stock			—				4,710
		Lowes Cos Inc		Common Stock			—				7,660
		Macys Inc		Common Stock			—				5,878
		Marsh & Mclennan Cos Inc		Common Stock			—				13,253
		Masco Corp		Common Stock			—				3,658
		McDonalds Corp		Common Stock			—				5,444
		Medco Health Solutions Inc		Common Stock			—				10,787
		Merck & Co Inc New		Common Stock			—				25,416
		Metlife Inc		Common Stock			—				3,201
		Microsoft Corp		Common Stock			—				27,912
		Microsoft Corp		Common Stock			—				14,995
		Morgan Stanley		Common Stock			—				9,396
		Morgan Stanley		Common Stock			—				11,282
		Motorola Inc		Common Stock			—				9,706
		Newmont Mng Corp		Common Stock			—				12,797
		News Corp		Common Stock			—				22,249
		Nexen Inc		Common Stock			—				6,446
		Noble Energy Inc		Common Stock			—				5,493
		Nokia Corp		Common Stock			—				9,393
		Northrop Grumman Corp		Common Stock			—				10,550
		Novartis Ag		Common Stock			—				12,168
		Nvr Inc		Common Stock			—				6,752
		Occidental Pete Corp		Common Stock			—				29,006
		Office Depot Inc		Common Stock			—				3,288
		Oracle Corp		Common Stock			—				6,995
		Pepsico Inc		Common Stock			—				11,621
		Pfizer Inc		Common Stock			—				29,888
		Pfizer Inc		Common Stock			—				17,689
		Pulte Homes Inc		Common Stock			—				2,906
		Qualcomm Inc		Common Stock			—				43,020
		Qualcomm Inc		Common Stock			—				14,064
		Regions Finl Corp New		Common Stock			—				2,577

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		Schedule I
December 31, 2009

		RRI Energy Inc		Common Stock			—				2,244
		Schlumberger Ltd		Common Stock			—				50,892
		Schlumberger Ltd		Common Stock			—				8,294
		Schwab Charles Corp		Common Stock			—				13,021
		Smith Intl Inc		Common Stock			—				12,543
		Smithfield Foods Inc		Common Stock			—				3,226
		Southwest Airls Co		Common Stock			—				10,285
		Sprint Nextel Corp		Common Stock			—				13,770
		SPX Corp		Common Stock			—				6,603
*		State Street Corporation		Common Stock			—				11,096
		Steel Dynamics Inc		Common Stock			—				2,476
		Suncor Energy Inc New		Common Stock			—				21,668
		Supervalu Inc		Common Stock			—				6,762
		Symantec Corp		Common Stock			—				10,858
		Symantec Corp		Common Stock			—				13,518
		Target Corp		Common Stock			—				29,969
		Teva Pharmaceutical Inds L		Common Stock			—				33,595
		Texas Instrs Inc		Common Stock			—				16,836
		Textron Inc		Common Stock			—				3,112
		Time Warner Cable Inc		Common Stock			—				16,886
		Time Warner Inc		Common Stock			—				17,295
		Time Warner Inc		Common Stock			—				9,934
		Travelers Cos Inc		Common Stock			—				5,963
		Tyco Electronics Ltd Switz		Common Stock			—				16,986
		Unilever N V		Common Stock			—				9,504
		Unitedhealth Group Inc		Common Stock			—				11,720
		Unum Group		Common Stock			—				3,055
		US Bancorp Del		Common Stock			—				9,284
		Vale Sa		Common Stock			—				27,127
		Valero Energy Corp		Common Stock			—				11,402
		Valero Energy Corp		Common Stock			—				12,450
		Vertex Pharmaceuticals Inc		Common Stock			—				6,610
		Viacom Inc New		Common Stock			—				1,961
		Visa Inc		Common Stock			—				8,212
		Vodafone Group Plc New		Common Stock			—				7,149
		Wal Mart Stores Inc		Common Stock			—				13,442
		Washington Post Co		Common Stock			—				12,014
		Wells Fargo & Co		Common Stock			—				905
		Wells Fargo & Co		Common Stock			—				17,105
		Western Digital Corp		Common Stock			—				8,785
		Xl Capital Ltd		Common Stock			—				8,278
		Common Stock								$	9,234,270

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		Schedule I
December 31, 2009

** U.S. Government and Government Agency Issues:
		Fed Hm Ln Pc Pool A37176		5.0% 01 SEP 2035			—				9,101
		Fed Hm Ln Pc Pool A46049		5.0% 01 JUL 2035			—				8,062
		Fed Hm Ln Pc Pool C48827		6.0% 01 MAR 2031			—				257
		Fed Hm Ln Pc Pool G12334		5.0% 01 SEP 2021			—				5,123
		Federal Home Ln Mtg Corp		5.0% 15 JAN 2030			—				2,493
		Federal Home Ln Mtg Corp		5.0% 15 DEC 2023			—				390
		Federal Home Ln Mtg Corp		5.0% 15 MAR 2019			—				1,843
		Federal Home Ln Mtg Corp		5.0% 15 SEP 2018			—				739
		FNMA Pool 256398		6.0% 01 SEP 2021			—				1,058
		FNMA Pool 323887		6.0% 01 DEC 2013			—				717
		FNMA Pool 581043		6.0% 01 MAY 2016			—				330
		FNMA Pool 615005		6.0% 01 DEC 2016			—				621
		FNMA Pool 694448		5.5% 01 APR 2033			—				6,601
		FNMA Pool 725690		6.0% 01 AUG 2034			—				4,758
		FNMA Pool 745418		5.5% 01 APR 2036			—				3,093
		FNMA Pool 748115		6.0% 01 OCT 2033			—				1,452
		FNMA Pool 815316		5.5% 01 MAY 2035			—				7,766
		FNMA Pool 822979		5.5% 01 APR 2035			—				7,852
		FNMA Pool 885504		6.0% 01 JUN 2021			—				2,689
		FNMA Pool 888102		5.5% 01 MAY 2036			—				474
		FNMA Pool 902793		6.5% 01 NOV 2036			—				6,195
		Mexico Utd Mex St		8.0% 17 DEC 2015			—				1,275
		United States Treas Notes		2.125% 30 APR 2010			—				14,462
		United States Treas Notes		1.125% 15 DEC 2011			—				49,727
		United States Treas Notes		0.875% 28 FEB 2011			—				26,232
		US Treasury		1.375% 15 SEP 2012			—				10,522
		U.S. Government and Government Agency Issues								$	173,832
** Corporate and Other Obligations:
		Abu Dhabi Natl Energy		7.25% 01 AUG 2018			—				3,811
		Aes Corp		8.0% 15 OCT 2017			—				2,038
		Aes Corp		7.75% 15 OCT 2015			—				1,779
		Agilent Technologies		6.5% 01 NOV 2017			—				5,749
		Albertsons Inc		6.625% 01 JUN 2028			—				222
		Albertsons Inc		7.5% 15 FEB 2011			—				3,106
		Altria Group Inc		9.95% 10 NOV 2038			—				5,330
		Altria Group Inc		9.25% 06 AUG 2019			—				783
		American Tower Corp		4.625% 01 APR 2015			—				1,702
		Anheuser Busch Cos Inc		6.5% 01 MAY 2042			—				1,560
		Anheuser Busch Cos Inc		4.95% 15 JAN 2014			—				241
		Anheuser Busch Inbev		4.125% 15 JAN 2015			—				6,465
		Apache Corp		6.0% 15 JAN 2037			—				249
		AT&T Corp		6.5% 15 MAR 2029			—				233
		Ba Cr Card Tr		1.0% 15 JAN 2016			—				806

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		Schedule I
December 31, 2009

		Ba Cr Card Tr		1.0% 15 JUN 2014			—				1,027
*		Banc Amer Coml Mtg Tr		1.0% 10 APR 2049			—				1,510
*		Bank Corp Amer		4.75% 15 AUG 2013			—				2,553
		Bank One Issuance		4.77% 16 FEB 2016			—				1,229
		Barclays Bank Plc		5.2% 10 JUL 2014			—				2,477
		Barclays Bank Plc		5.0% 22 SEP 2016			—				2,387
		Bear Stearns Coml Mtg Secs Tr		1.0% 11 JUN 2040			—				1,858
		Bell Canada		6.1% 16 MAR 2035			—				1,800
		Bell Cda		6.55% 01 MAY 2029			—				862
		Bell Cda		7.3% 23 FEB 2032			—				1,174
		Bemis Company		5.56% 01 AUG 2019			—				671
		Boston Scientific Corp		4.5% 15 JAN 2015			—				1,814
		Bottling Group LLC		5.125% 15 JAN 2019			—				1,821
		Cameron Intl Corp		6.375% 15 JUL 2018			—				137
		Cameron Intl Corp		7.0% 15 JUL 2038			—				483
		Canadian Pacific RR Co		7.25% 15 MAY 2019			—				1,129
		Capital One Multi Ass Exe		1.0% 15 JUL 2020			—				1,175
		Caterpillar Financial		5.45% 15 APR 2018			—				183
		CD		5.322% 11 DEC 2049			—				5,576
		CD Mtg Tr		5.617% 15 OCT 2048			—				4,285
		Cellco Part/Veri Wireless		8.5% 15 NOV 2018			—				507
		Cellco Part/Veri Wireless		5.55% 01 FEB 2014			—				3,550
		Chesapeake Energy Corp		6.5% 15 AUG 2017			—				172
		Chesapeake Energy Corp		7.625% 15 JUL 2013			—				3,427
		Chevron Phillips Chemical		7.0% 15 JUN 2014			—				2,159
		Cigna Corp		8.5% 01 MAY 2019			—				66
		Cit Equip Coll		6.59% 22 DEC 2014			—				4,017
		Citibank Cr Card		6.3% 20 JUN 2014			—				7,719
		Citigroup Coml Mtg Tr		5.431% 15 OCT 2049			—				542
		Citigroup Inc		5.0% 15 SEP 2014			—				4,786
		Citizens Communications		7.875% 15 JAN 2027			—				3,117
		Colorado Intst Gas Co		5.95% 15 MAR 2015			—				258
		Colorado Intst Gas Co		6.8% 15 NOV 2015			—				193
		Columbia/HCA Healthcare		7.58% 15 SEP 2025			—				104
		Columbia/HCA Healthcare		7.69% 15 JUN 2025			—				481
		Columbia/HCA Healthcare		7.5% 15 DEC 2023			—				267
		Comcast Corp New		5.65% 15 JUN 2035			—				1,354
		Comcast Corp New		6.45% 15 MAR 2037			—				1,144
		Comcast Corp New		6.95% 15 AUG 2037			—				5,577
		Comcast Corp New		6.4% 15 MAY 2038			—				2,284
		Comm Mtg Tr		1.0% 10 DEC 2049			—				530
		Commercial Mtg Tr		5.736% 10 DEC 2049			—				2,385
		ConocoPhillips		4.75% 01 FEB 2014			—				4,516
		Corning Inc		6.85% 01 MAR, 2029			—				175
		Corning Inc		7.25% 15 AUG 2036			—				714
		Covidien Intl Fin		6.0% 15 OCT 2017			—				2,930
		Credit Suisse		6.0% 15 FEB 2018			—				3,667
		CSC Holdings Inc		7.875% 15 FEB 2018			—				1,874

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		Schedule I
December 31, 2009

		CSC Holdings Inc		8.5% 15 APR 2014			—				1,555
		Delta Airlines Inc		1.0% 10 FEB 2024			—				2,735
		Deutscche Telkom Int		4.875% 08 JUL 2014			—				2,756
		Discover Card		1.0% 16 OCT 2014			—				3,209
		Duke Energy		6.25% 15 JAN 2012			—				379
		Embarq Corp		7.995% 01 JUN 2036			—				9,928
		Enel Fin Intl		6.25% 15 SEP 2017			—				4,277
		Eqt Corp		8.125% 01 JUN 2019			—				1,134
		Equifax Inc		7.0% 01 JUL 2037			—				1,780
		Erac Finc Co		6.375% 15 OCT 2017			—				7,139
		Erac Finc Co		7.0% 15 OCT 2037			—				114
		Eurofima		11.0% 05 FEB 2010			—				1,058
		Express Scripts		7.25% 15 JUN 2019			—				398
		Florida Gas Transmission Co		7.9% 15 MAY 2019			—				615
		Ford Mtr Co		7.25% 25 OCT 2011			—				3,834
		GCCFC 2006 GG7		1.0% 10 JUL 2038			—				1,331
		General Electric		3.75% 14 NOV 2014			—				4,956
		General Mtrs Accep Corp		6.875% 28 AUG 2012			—				2,115
		Georgia Pac Corp		7.375% 01 DEC 2025			—				1,339
		Georgia Pac Corp		7.25% 01 JUN 2028			—				2,010
		Georgia Pac Corp		7.75% 15 NOV 2029			—				2,134
		Georgia Pac Corp		8.875% 15 MAY 2031			—				62
		Georgia Pac Corp		8.0% 15 JAN 2024			—				119
		GMAC LLC		6.875% 28 AUG 2012			—				836
		GMAC LLC		7.25% 02 MAR 2011			—				324
		GMAC LLC		6.625% 15 MAY 2012			—				1,374
		GMAC LLC		6.875% 15 SEP 2011			—				644
		GMAC LLC		6.0% 15 DEC 2011			—				2,210
		Goldman Sachs Group Inc		6.125% 15 FEB 2033			—				352
		Goldman Sachs Group Inc		4.75% 15 JUL 2013			—				367
		Goldman Sachs Group Inc		5.125% 15 JAN 2015			—				3,437
		Goldman Sachs Group Inc		5.625% 15 JAN 2017			—				3,759
		Goldman Sachs Group Inc		6.75% 01 OCT 2037			—				4,743
		Goldman Sachs Group Inc		5.95% 18 JAN 2018			—				2,159
		Goldman Sachs Group Inc		6.15% 01 APR 2018			—				1,313
		Greenewich Capital Comm		5.444% 10 MAR 2039			—				8,516
		Hasbro Inc		6.3% 15 SEP 2017			—				1,175
		Hasbro Inc		6.125% 15 MAY 2014			—				763
		HCA Inc		6.5% 15 FEB 2016			—				3,219
		Hertz		4.26% 25 MAR 2014			—				3,493
		Hess Corp		7.0% 15 FEB 2014			—				986
		Hewlett Packard		4.75% 02 JUN 2014			—				3,244
		Home Depot		5.4% 01 MAR 2016			—				306
		Home Depot		5.87% 16 DEC 2036			—				5,435
		Hospira Inc		6.05% 30 MAR 2017			—				2,079
		Incitec Pivot Fin LLC		6.0% 10 DEC 2019			—				1,156
		Ingersoll Rand Global		6.875% 15 AUG 2018			—				2,266
		International Paper		7.975% 15 JUN 2018			—				3,032