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, 2011

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 International Inc. and Subsidiaries

Incentive 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

 

 

 

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Financial Statements and Supplemental Schedule

December 31, 2011 and 2010

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Index

December 31, 2011 and 2010

 

 

		Page(s)
Report of Independent Registered Public Accounting Firm			1
Financial Statements
Statements of Net Assets Available for Benefits as of December 31, 2011 and 2010			2
Statements of Changes in Net Assets Available for Benefits for the years ended December  31, 2011 and 2010			3
Notes to Financial Statements			4-14
Supplemental Information
Schedule H, Line 4i: Schedule of Assets (Held at End of Year) as of December 31, 2011			16-70

---

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Participants and Administrative Committee of

  the Baxter International Inc. and Subsidiaries Incentive Investment Plan

Deerfield, Illinois

We have audited the accompanying statements of net assets available for benefits of the Baxter International Inc. and Subsidiaries Incentive Investment Plan (“the Plan”) as of December 31, 2011 and 2010, 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, 2011 and 2010, 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 2011 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2011 financial statements taken as a whole.

/s/ Crowe Horwath LLP

Oak Brook, Illinois

June 27, 2012

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Statements of Net Assets Available for Benefits

December 31, 2011 and 2010 (in thousands)

 

 

		2011				2010
Assets
Investments
Cash and cash equivalents		$	55,858			$	39,053
Common stock (including securities on loan of $1,108 in 2011 and $6,821 in 2010)			394,301				434,918
U.S. government and government agency issues (including securities on loan of $5,336 in 2011 and $4,523 in 2010)			21,865				20,064
Corporate and other obligations (including securities on loan of $7,072 in 2011 and $3,035 in 2010)			40,242				47,640
Commingled funds			335,027				359,352
Registered investment companies			214,074				185,116
Synthetic guaranteed investment contracts (including securities on loan of $214,376 in 2010)			743,892				724,396
Collateral held on loaned securities			13,782				230,444
Total investments at fair value			1,819,041				2,040,983
Receivables
Notes receivables from participants			40,514				39,926
Sponsor contributions			15,102				14,503
Accrued interest and dividends			1,869				1,901
Due from brokers for securities sold			16				875
			57,501				57,205
Total assets			1,876,542				2,098,188
Liabilities
Accounts payable			4,295				5,611
Due to brokers for securities purchased			81				—
Collateral to be paid on loaned securities			13,782				232,887
Total liabilities			18,158				238,498
Net assets available for benefits, reflecting investments at fair value			1,858,384				1,859,690
Adjustment from fair value to contract value for fully benefit-responsive investment contracts			(60,432	)			(49,603	)
Net assets available for benefits		$	1,797,952			$	1,810,087

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

 

2

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Statements of Changes in Net Assets Available for Benefits

For the Years Ended December 31, 2011 and 2010 (in thousands)

 

 

		2011				2010
Additions (reductions) to net assets attributed to
Investment income
Net (depreciation) appreciation in fair value of investments		$	(39,315	)		$	80,309
Interest			30,742				33,469
Dividends			12,405				10,717
Net investment income			3,832				124,495
Participant loan interest			1,811				1,999
Contributions
Sponsor			53,357				53,270
Participant			84,207				88,683
			137,564				141,953
Net additions			143,207				268,447
Deductions from net assets attributed to
Benefits paid			148,773				118,199
Plan expenses			6,569				5,610
Total deductions			155,342				123,809
Net (decrease) increase			(12,135	)			144,638
Net assets available for benefits
Beginning of year			1,810,087				1,665,449
End of year		$	1,797,952			$	1,810,087

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

 

3

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 2010

 

 

1.	General Description of the Plan

The following description of the Baxter International Inc. and Subsidiaries Incentive 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 allows tax deferred contributions in compliance with Section 401(k) of the Internal Revenue Code. Eligible participants may make pre-tax contributions of up to 50% of their eligible annual compensation within certain limitations. Newly hired employees are deemed to have elected to contribute 3% of compensation (increased by 1% per year to a total of 6%) unless they make a contrary election. The Plan sponsor, Baxter International Inc. (Baxter or the Company), matches participant contributions up to a maximum of 3.5% of the employee’s compensation. Participant contributions and Plan sponsor matching contributions are fully vested and nonforfeitable at all times. The Company also contributes an additional non-matching 3% of compensation for employees that are not eligible to participate in the Company’s U.S. qualified defined benefit pension plan, which includes all new employees hired on or after January 1, 2007, and employees who had less than five years of service on January 1, 2007 and who elected to cease earning additional service in the pension plan and participate in the higher level of Company contributions in the Plan. The additional non-matching contribution becomes fully vested after three years of service. Forfeitures of nonvested accounts are used to reduce future employer contributions.

Participants may borrow up 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 variable rates as outlined in the Plan agreement. The 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.

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, matching contributions made prior to 2008, vested non-matching contributions and related earnings in cases of financial hardship and in certain other circumstances. In the case of a participant termination 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 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 to any of 18 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, ten different Target Retirement Funds and the Self-Managed Fund. However, non-matching contributions may not be invested in the Baxter Common Stock Fund. In addition, certain participants may maintain shares received in connection with Baxter’s 1996 spin-off of Allegiance Corporation (Allegiance), which were subsequently converted into common shares of Cardinal Health Inc. (Cardinal) upon Cardinal’s acquisition of Allegiance in 1999. These shares are maintained in the Cardinal Health Common Stock Fund. Additionally, 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 Cardinal Health Common Stock Fund or the Edwards Lifesciences Common Stock Fund, but may make transfers out of these funds at any time.

 

4

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 2010

 

 

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.

New Accounting Standards

In January 2010, the Financial Accounting Standards Board issued a new accounting standard effective for reporting periods beginning after December 15, 2010, which required an entity to separately present information related to purchases, sales, issuances and settlements in the reconciliation of fair value measurements classified as Level 3. The plan did not have any activity related to purchases, sales, issuances or settlements for fair value measurements classified as Level 3.

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.
Commingled funds		Value based on net asset values reported by the fund managers as of the Plan’s financial statement dates and recent transaction prices. The investment objectives of these funds are to track the performances of the S&P 500 (S&P 500 Flagship Fund); Europe, Australasia and the Far East (EAFE) (International EAFE Equity Index Fund); or Russell 2000 (Small Cap Fund) indexes. The underlying investments vary, with some holding diversified portfolios of domestic stocks and government agency bonds, and others holding collective investment funds. Each fund provides for daily redemptions by the Plan at reported net asset values per share, with no advance notice requirement. Refer to Note 6 for amounts invested in each of these funds.

 

5

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 2010

 

 

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 wrapper contracts, which is calculated using a replacement cost approach. The underlying securities are valued based upon the methodologies described above. See below for more information.
Collateral held on loaned securities		Value based upon the net asset value per unit of the short-term investment funds where the collateral is invested. Refer to Note 7 for more information on the securities lending program.
Collateral to be paid on loaned securities		Value based on the fair value of the underlying securities loaned on the valuation date, plus an incremental margin.

Income Recognition

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

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

Synthetic Guaranteed Investment Contracts

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

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 values of the wrapper contracts were a loss of $343,018 and a gain of $1.6 million at December 31, 2011 and 2010, respectively.

While Plan investments are presented at fair value in the Statements 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

 

6

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 2010

 

 

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 $683.5 million and $674.8 million at December 31, 2011 and 2010, 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 2.9% and 3.5% at December 31, 2011 and 2010, respectively. The average interest rate credited to participants on the synthetic GICs was approximately 3.7% and 4.1% for the years ended December 31, 2011 and 2010. The credit ratings for Aegon Institutional Markets were AA- at both December 31, 2011 and 2010, and the credit ratings for Bank of America N.A. were A and A+ at December 31, 2011 and 2010, 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.

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.

 

7

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 2010

 

 

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.

U.S. employees of Baxter or its subsidiaries which have adopted the Plan;

 

B.

U.S. employees not covered by a collective bargaining agreement unless the agreement provides for coverage under the Plan; and

 

C.

U.S. employees who are not leased employees.

 

4.	Administration of the Plan

State Street Bank and Trust Company (the Trustee) serves as trustee and 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 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.

 

8

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 2010

 

 

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
		Balance at December 31, 2011				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(in thousands)
Assets
Cash and cash equivalents		$	55,858			$	—			$	55,858			$	—
Common stock:
Healthcare			201,587				201,587				—				—
Consumer products			55,827				55,827				—				—
Information technology			47,938				47,938				—				—
Financial services			21,838				21,838				—				—
Industrial services and materials			20,624				20,624				—				—
Energy			16,602				16,602				—				—
Other			29,885				29,885				—				—
Total common stock			394,301				394,301				—				—
U.S. government and government agency issues			21,865				—				21,865				—
Corporate and other obligations			40,242				—				40,242				—
Commingled funds			335,027				—				335,027				—
Registered investment companies:
Target retirement funds			199,777				199,777				—				—
Self-managed funds			11,830				11,830				—				—
Other			2,467				2,467				—				—
Total registered investment companies			214,074				214,074				—				—
Synthetic guaranteed investment contracts:
Corporate and other obligations			257,547				—				257,547				—
U.S. government and government agency issues			463,348				—				463,348				—
Cash and cash equivalents			23,347				17				23,330				—
Wrapper contracts			(343	)			—				—				(343	)
Other			(7	)			—				(7	)			—
Total synthetic guaranteed investment contracts			743,892				17				744,218				(343	)
Collateral held on loaned securities			13,782				—				13,782				—
Total assets		$	1,819,041			$	608,392			$	1,210,992			$	(343	)
Liability
Collateral to be paid on loaned securities		$	13,782			$	1,135			$	12,647			$	—

 

9

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 2010

 

 

						Basis of Fair Value Measurement
		Balance at December 31, 2010				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(in thousands)
Assets
Cash and cash equivalents		$	39,053			$	—			$	39,053			$	—
Common stock:
Healthcare			211,669				211,669				—				—
Consumer products			48,708				48,708				—				—
Information technology			46,526				46,526				—				—
Financial services			33,235				33,235				—				—
Industrial services and materials			35,358				35,358				—				—
Energy			28,737				28,737				—				—
Other			30,685				30,685				—				—
Total common stock			434,918				434,918				—				—
U.S. government and government agency issues			20,064				—				20,064				—
Corporate and other obligations			47,640				—				47,640				—
Commingled funds			359,352				—				359,352				—
Registered investment companies:
Target retirement funds			172,137				172,137				—				—
Self-managed funds			12,979				12,979				—				—
Total registered investment companies			185,116				185,116				—				—
Synthetic guaranteed investment contracts:
Corporate and other obligations			264,682				—				264,682				—
U.S. government and government agency issues			436,962				—				436,962				—
Cash and cash equivalents			21,120				—				21,120				—
Wrapper contracts			1,634				—				—				1,634
Other			(2	)			—				(2	)			—
Total synthetic guaranteed investment contracts			724,396				—				722,762				1,634
Collateral held on loaned securities			230,444				—				230,444				—
Total assets		$	2,040,983			$	620,034			$	1,419,315			$	1,634
Liability
Collateral to be paid on loaned securities		$	232,887			$	6,929			$	225,958			$	—

There were no transfers from Level 1 to Level 2 investments in 2011 or 2010.

 

10

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 2010

 

 

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, 2009		$	1,668
Unrealized losses (relating to assets held at end of year)			(34	)
Balance at December 31, 2010			1,634
Unrealized losses (relating to assets held at end of year)			(1,977	)
Balance at December 31, 2011		$	(343	)

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

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

 

6.	Investments

Investments representing five percent or more of the Plan’s net assets available for benefits at December 31, 2011 and 2010 are summarized as follows:

 

(in thousands, except per share data)		2011				2010
Baxter common stock, 2,921,806 shares and 3,077,924 shares at December 31, 2011 and 2010, respectively		$	144,571			$	155,805
State Street Global Advisors (SSgA) S&P 500 Flagship Fund			173,817				176,772
SSgA International EAFE Equity Index Fund			*				94,567
Baxter International Savings Trust Separate Account (Collateral held on loaned securities)			*				215,921

 

*

Does not meet 5% threshold.

 

11

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 2010

 

 

Investments as of December 31, 2011 and 2010 are segregated into various investment fund options as follows:

 

		2011				2010
(in thousands)
Cash (available for investment)		$	6,861			$	6,637
Stable Income Fund			775,335				737,052
Baxter Common Stock Fund			144,639				157,521
Composite Fund			140,853				150,741
General Equity Fund			137,841				154,195
Cardinal Health Common Stock Fund			5,243				5,308
SSgA S&P 500 Flagship Fund			173,954				177,001
SSgA International EAFE Equity Index Fund			80,053				94,603
Edwards Lifesciences Common Stock Fund			17,747				22,526
SSgA Small Cap Fund			81,274				88,103
Self-Managed Fund			41,682				44,715
Target Retirement Funds			199,777				172,137
Collateral held on loaned securities			13,782				230,444
Total investments at fair value			1,819,041				2,040,983
Adjustment from fair value to contract value for Stable Income Fund			(60,432	)			(49,603	)
Total investments		$	1,758,609			$	1,991,380

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

 

		2011				2010
(in thousands)
Baxter common stock		$	(1,295	)		$	(22,002	)
Other common stock			(22,315	)			34,999
U.S. government and government agency issues			1,154				205
Corporate and other obligations			1,031				2,549
Commingled funds			(11,490	)			45,909
Registered investment companies			(7,314	)			17,535
Collateral held on loaned securities			914				1,114
		$	(39,315	)		$	80,309

 

7.	Securities Lending Transactions

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

The Trustee 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 Trustee 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 Trustee shall credit the Plan for the market value of the unreturned securities. In each case, the Trustee would apply the proceeds from the collateral for such a loan to make the Plan whole.

 

12

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 2010

 

 

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, 2010, the Plan had securities on loan with a fair market value of $228.8 million, with cash collateral received of $232.9 million, which was reflected at its fair value of $230.4 million. During 2010, $218.4 million was redeemed from the State Street Quality D Short-Term Investment Fund and held in a separate fund (Baxter International Savings Trust Separate Account) for liquidation due to an agreement between the Plan and the Trustee to terminate the securities lending program for the securities within the Stable Income Fund. As of December 31, 2010, the net asset value of the Baxter International Savings Trust Separate Account was $0.9929. As a result of the liquidation of this fund in 2011, a realized gain of $913,841 is reflected in the 2011 Statement of Changes in Net Assets Available for Benefits. As of December 31, 2011, the Plan had securities on loan with a fair market value of $13.5 million with cash collateral received of $13.8 million, 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 and as of December 31, 2011, the net asset value of this fund was approximately $1.00 per unit. As of December 31, 2011 the cash collateral received is reflected at its fair value of $13.8 million in the 2011 Statements of Net Assets Available for Benefits.

Non-cash collateral of $2.0 million and $6.7 million received for securities on loan at December 31, 2011 and 2010, respectively, consisted of U.S. government and government agency issues held by the Trustee on behalf of the Plan. Non-cash collateral is not included with the collateral balance on the 2011 and 2010 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 Trustee in its capacity as a security agent. Securities lending income allocated to the Plan amounted to $57,249 and $424,446 for 2011 and 2010, 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 the 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

The Internal Revenue Service (IRS) has determined and informed the Plan sponsor by a letter dated July 19, 2006 that the Plan is designed in accordance with applicable sections of the Internal Revenue Code (the IRC). The Plan has been amended since the date of the determination letter. The Plan sponsor believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC. Therefore, no provision for income taxes has been included in the Plan’s financial statements. The Plan has requested from the IRS an updated determination letter, but has not yet received it as of the date of this report.

 

13

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2011 and 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.

At December 31, 2011 and 2010, the Plan held units of participation in certain commingled funds, shares of common stock, units of registered investment companies, and short-term investment funds of State Street Bank and Trust Company, the Plan trustee; shares of common stock and bonds of Baxter, the Plan sponsor; loans with participants; units of registered investment companies managed by Pacific Investment Management Company, an investment manager for the Plan; shares of common stock and units of registered investment companies managed by AllianceBernstein, an investment manager for the Plan; units of registered investment companies managed by Loomis Sayles, 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 Aegon Institutional Markets, issuer of the Plan’s fully benefit-responsive contracts; and units of registered investment companies in various affiliates of ING Institutional Plan Services, LLC, the recordkeeper. These transactions are allowable party-in-interest transactions under ERISA and the regulations promulgated thereunder.

Fees paid by the Plan for investment management, recordkeeping and consulting services, also qualify as party-in-interest transactions and are included in Plan expenses in the accompanying financial statements. The Company pays certain expenses for the administration of the Plan. These transactions are exempt from the party-in interest transaction prohibitions of ERISA.

 

14

---

Table of Contents

SUPPLEMENTAL SCHEDULE

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Cash & Cash Equivalents:
*		SSGA Money Market Fund		Short-Term Investment Fund			—				8,494,617
*		State Street Bank & Trust Co		Short-Term Investment Fund			—				47,363,765
		Cash and cash equivalents								$	55,858,382
**		Common Stock:
		3Dicon Corp		Common Stock			—				10,094
		3M Company		Common Stock			—				10,295
		8X8 Inc		Common Stock			—				3,170
		ABB Ltd Sponsored ADR		Common Stock			—				16,368
		Abbott Laboratories		Common Stock			—				150,962
		Abbott Laboratories		Common Stock			—				1,111,005
		Acadia Pharmaceuticals Inc		Common Stock			—				243
		Access Pharmaceuticals Inc		Common Stock			—				14,033
		Acclaim Entertainment Inc		Common Stock			—				—
		Accretive Health Inc		Common Stock			—				5,745
		ACE Ltd		Common Stock			—				1,489,355
		Acme Packet Inc		Common Stock			—				12,364
		AcordaTherapeutics Inc		Common Stock			—				11,920
		Activision Blizzard Inc		Common Stock			—				26,389
		Adaptive Broadband Corp		Common Stock			—				—
		Adarna Energy Corp		Common Stock			—				—
		Adept Technology Inc		Common Stock			—				1,176
		Adolor Corp		Common Stock			—				2,315
		Advanced Micro Devices Inc		Common Stock			—				5,940
		Advanced Optics Electronics Inc		Common Stock			—				—
		Advansource Biomaterials Corp		Common Stock			—				65
		Advanta Corp		Common Stock			—				—
		Advantage Oil & Gas Ltd		Common Stock			—				1,035
		Adventrx Pharmaceuticals Inc		Common Stock			—				590
		Aegean Marine Petroleum Network Inc		Common Stock			—				4,080
		AES Corp		Common Stock			—				1,149,802
		Aeterna Zentaris Inc		Common Stock			—				924
		Affymax Inc		Common Stock			—				6,610
		Aflac Inc		Common Stock			—				24,483
		Agco Corp		Common Stock			—				12,891
		Agenus Inc New		Common Stock			—				1,474
		Agilent Technologies		Common Stock			—				1,770,247
		AGL Res Inc		Common Stock			—				16,904
		Agnico Eagle Mines Ltd		Common Stock			—				68,667
		Agrium Inc I		Common Stock			—				8,389
		AK Steel Hldg Corp		Common Stock			—				4,144
		Aksys Ltd		Common Stock			—				2
		Alcatel Lucent Spon ADR		Common Stock			—				6,087
		Alcoa Inc		Common Stock			—				41,960
		Alexco Resource Corp		Common Stock			—				20,430

 

16

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost  (1)				Current Value
		Alexion Pharmaceuticals		Common Stock			—				933,874
		Alexza Pharmaceuticals Inc		Common Stock			—				1,411
		ALJ Regl Hldgs Inc		Common Stock			—				390
		All Amern Gold Corp		Common Stock			—				115
		Allergan Inc		Common Stock			—				2,182,499
		Alliance Pharmaceutical Corp New		Common Stock			—				5
*		AllianceBernstein Hldg L P Unit Ltd		Common Stock			—				5,958
		Allied Irish Banks		Common Stock			—				136
		Alliqua Inc		Common Stock			—				300
		Allos Therapeutics Inc		Common Stock			—				7,121
		Allscripts Healthcare Solutions Inc		Common Stock			—				9,129
		Allstate Corp		Common Stock			—				11,061
		Almaden Minerals Ltd		Common Stock			—				12,600
		Alnylam Pharmaceuticals Inc		Common Stock			—				815
		Alon USA Energy Inc		Common Stock			—				4,791
		Alpha Nat Res Inc		Common Stock			—				6,129
		Altair Nanotechnologies Inc		Common Stock			—				165
		Alternative Living Services		Common Stock			—				—
		Altria Group Inc		Common Stock			—				153,792
		Aluminum Corp China		Common Stock			—				184
		Alvarion Ltd		Common Stock			—				455
		Amarin Corp		Common Stock			—				8,876
		Amazon.com Inc		Common Stock			—				52,796
		Amazon.com Inc		Common Stock			—				4,377,448
		Amcore Finl Inc		Common Stock			—				—
		Amdocs Ltd		Common Stock			—				5,706
		Ameren Corp		Common Stock			—				3,353
		American Cap Agy Corp		Common Stock			—				25,333
		American Cap Ltd		Common Stock			—				18,044
		American Elec Pwr Co		Common Stock			—				37,909
		American Express Co		Common Stock			—				5,612
		American Express Co		Common Stock			—				1,943,117
		American Intl Group Inc		Common Stock			—				1,394
		American Intl Group Inc		Common Stock			—				6,450
		American Lithium Minerals Inc		Common Stock			—				390
		American Tower Corp		Common Stock			—				4,829
		American Tower Corp		Common Stock			—				2,329,883
		Amerigas Partners LP Uts Rpstg Ltd		Common Stock			—				9,641
		Amern Super Conductor Corp		Common Stock			—				11,070
		Amgen Inc		Common Stock			—				62,757
		Amn Healthcare Svcs Inc		Common Stock			—				5,759
		Ampliphi Biosciences Corp		Common Stock			—				1,072
		AMR Corp		Common Stock			—				2,546
		Amstem Corp		Common Stock			—				30
		Amwest Imaging Inc		Common Stock			—				350
		Amylin Pharm Inc		Common Stock			—				5,690
		Anadarko Petroleum		Common Stock			—				3,817
		Anadarko Petroleum		Common Stock			—				719,838
		Andrea Electronics Corp		Common Stock			—				47

 

17

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Annaly Mortgage Management Inc		Common Stock			—				257,908
		Anthera Pharmaceuticals Inc		Common Stock			—				107,450
		Anworth Mtg Asset Corp		Common Stock			—				1,922
		AOL Inc		Common Stock			—				211
		Apache Corp		Common Stock			—				9,966
		Apollo Group Inc		Common Stock			—				3,232
		Apollo Invt Corp		Common Stock			—				14,575
		Apple Inc		Common Stock			—				2,764,935
		Apple Inc		Common Stock			—				6,201,612
		Applied Materials Inc		Common Stock			—				10,282
		Applied Materials Inc		Common Stock			—				808,352
		Applied Materials Inc		Common Stock			—				1,036,892
		Apptech Corp		Common Stock			—				—
		Apricus Biosciences Inc		Common Stock			—				4,644
		Aqua America Inc		Common Stock			—				2,560
		Aradigm Corp		Common Stock			—				368
		Arch Coal Inc		Common Stock			—				6,971
		Archer Daniels Midland		Common Stock			—				23,183
		Archer Daniels Midland		Common Stock			—				1,062,360
		Ar Cos Dorados Holdings Inc		Common Stock			—				35,027
		Arena Pharmaceuticals Inc		Common Stock			—				9,350
		Ariad Pharmaceutical Inc		Common Stock			—				37,791
		Arm Holdings Plc		Common Stock			—				11,068
		ARM Holdings Plc		Common Stock			—				492,039
		Arrowhead Resh Corp		Common Stock			—				1,994
		Artificial Life Inc		Common Stock			—				140
		AsiaPulp & Paper Co Ltd		Common Stock			—				—
		Aspenbio Pharma Inc		Common Stock			—				155
		Astrazeneca Plc		Common Stock			—				2,083
		Astropower Inc		Common Stock			—				—
		AT&T Inc		Common Stock			—				167,733
		Atlantic Power Corp		Common Stock			—				2,935
		ATP Oil & Gas Corp		Common Stock			—				44,160
		Atwood Oceanics Inc		Common Stock			—				3,979
		ATX Communications Inc		Common Stock			—				—
		Augme Technologies Inc		Common Stock			—				56,280
		Aurico Gold Inc		Common Stock			—				16,781
		Aurizon Mines Ltd		Common Stock			—				9,860
		Automatic Data Processing Inc		Common Stock			—				37,662
		Avago Technologies		Common Stock			—				989,222
		Avalon Rare Metals Inc		Common Stock			—				474
		Avanir Pharmaceuticals		Common Stock			—				2,440
		AVI Biopharma Inc		Common Stock			—				10,281
		Axia Group Inc		Common Stock			—				—
		Axion Power International Inc		Common Stock			—				1,080
		Babcock & Wilcox Co		Common Stock			—				9,656
		Babson Cap Partn Invs Tr		Common Stock			—				31,700
		Backweb Technologies Ltd		Common Stock			—				170
		Baidu Inc		Common Stock			—				2,055,238

 

18

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Baidu Inc		Common Stock			—				83,742
		Banco Latino-Americano De ercio Exterior Sa		Common Stock			—				14,124
		Banco Santander SA		Common Stock			—				6,836
		Bank New York Mellon Corp		Common Stock			—				15,825
*		Bank of America Corp		Common Stock			—				358,790
*		Bank of America Corp		Common Stock			—				713,513
		Barclays		Common Stock			—				33,388
		Bard CR Inc		Common Stock			—				47,453
		Barrick Gold Corp		Common Stock			—				339,743
*		Baxter International Inc		Common Stock			—				143,185,079
*		Baxter International Inc		Common Stock			—				1,385,860
		Bayer AG		Common Stock			—				16,495
		BB Liquidating Inc		Common Stock			—				2
		BB Liquidating Inc		Common Stock			—				105
		BB&T Corp		Common Stock			—				1,167,446
		BCE Inc		Common Stock			—				1,667,233
		Beacon Pwr Corp		Common Stock			—				79
		Bed Bath & Beyond Inc		Common Stock			—				923,638
		Benchmark Electrs Inc		Common Stock			—				1,616
		Berkshire Hathaway Inc		Common Stock			—				186,935
		Best Buy Inc		Common Stock			—				16,542
		Beyond Corp New		Common Stock			—				—
		Big Bear Mng Corp		Common Stock			—				26
		Biodel Inc		Common Stock			—				732
		Bioelectronics Corp		Common Stock			—				308
		Biomedical Technology Solutions Hldgs Inc		Common Stock			—				76
		Biomerica Inc		Common Stock			—				6,720
		Biomoda Inc		Common Stock			—				297
		Biosante Pharmaceuticals Inc		Common Stock			—				5,974
		Bizauctions Inc		Common Stock			—				—
		Black Hills Corp		Common Stock			—				3,694
		Blackrock Inc		Common Stock			—				1,109,337
		Blackstone Group LP		Common Stock			—				22,416
		Blavod Extreme Spirits		Common Stock			—				50
		BMW		Common Stock			—				915,785
		Boeing Co		Common Stock			—				33,543
		Boeing Co		Common Stock			—				1,950,132
		Bombardier Inc		Common Stock			—				3,987
		Borgwarner Inc		Common Stock			—				1,397,922
		Boston Scientific		Common Stock			—				1,068
		BP Amoco Plc		Common Stock			—				40,524
		Brandywine Rlty Tr		Common Stock			—				2,421
		Bridgepoint Ed Inc		Common Stock			—				9,729
		Briggs & Stratton Corp		Common Stock			—				2,788
		Bristol Myers Squibb		Common Stock			—				42,406
		Bristol Myers Squibb		Common Stock			—				1,520,501
		Broad Corp		Common Stock			—				17,029
		Broadridge Financial Solutions LLC		Common Stock			—				1,691
		Broadwind Energy Inc		Common Stock			—				68

 

19

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Brookfield Asset Mgmt Inc		Common Stock			—				6,870
		Brookfield Infrastructure Partners LP		Common Stock			—				9,376
		Brookfield Residential Pptys Inc		Common Stock			—				8
		Brooks Automation Inc		Common Stock			—				2,587
		Buckeye Partners LP		Common Stock			—				25,592
		Burberry Group		Common Stock			—				953,118
		Cadence Pharmaceuticals Inc		Common Stock			—				9,954
		Calamp Corp		Common Stock			—				115,816
		Calgon Carbon Corp		Common Stock			—				1,885
		Camden Ppty		Common Stock			—				11,699
		Cameco Corp		Common Stock			—				18,953
		Cameron Intl Corp		Common Stock			—				3,837
		Canadian Natural Resources		Common Stock			—				7,474
		Canadian Solar Inc		Common Stock			—				40
		Cannabis Science Inc		Common Stock			—				86
		Capital One Financial Corp		Common Stock			—				1,036,113
		Capitalsource Inc		Common Stock			—				13,052
		Capitol Bancorp Ltd		Common Stock			—				67
		Capstead Mtg Corp		Common Stock			—				12,439
		Capstone Turbine Corp		Common Stock			—				116
		Carbonite Inc		Common Stock			—				1,110
		Cardinal Communications Inc		Common Stock			—				—
		Cardinal Health Inc		Common Stock			—				5,206,974
		Cardinal Health Inc		Common Stock			—				80,012
		Carefusion Corp		Common Stock			—				25,918
		Carmax Inc		Common Stock			—				6,096
		Carnival Corp		Common Stock			—				9,792
		Cast Corp		Common Stock			—				2,371
		Caterpillar Inc		Common Stock			—				190,558
		CBL & Assoc Pptys Inc		Common Stock			—				1,727
		CDC Corporation		Common Stock			—				106
		Cedar Fair LP		Common Stock			—				1,109
		Celgene Corp		Common Stock			—				2,364,111
		Celgene Corp		Common Stock			—				28,933
		Cell Israel Ltd		Common Stock			—				7,842
		Cell Therapeutics Inc		Common Stock			—				5,624
		Cemex SA		Common Stock			—				3,127
		Cenovus Energy Inc		Common Stock			—				5,069
		Central Fd Cda		Common Stock			—				30,414
		Centurytel Inc		Common Stock			—				8,932
		Ceragon Networks Ltd		Common Stock			—				2,695
		Cereplast Inc		Common Stock			—				5,400
		Cerner Corp		Common Stock			—				11,025
		Cerus Corp		Common Stock			—				3,640
		Charles Schwab Corp		Common Stock			—				935,518
		Charter Inc		Common Stock			—				—
		Cheniere Energy Partners L P		Common Stock			—				813
		Chesapeake Energy Corporation		Common Stock			—				367,344
		Chevron Corp		Common Stock			—				225,995

 

20

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Chevron Corp		Common Stock			—				136,681
		Chimera Invt Corp		Common Stock			—				32,586
		China Automotive Sys Inc		Common Stock			—				2,376
		China Direct Inc		Common Stock			—				84
		China Energy Svgs Technology Inc		Common Stock			—				—
		China Green Agriculture Inc		Common Stock			—				4,686
		China Shen Zhou Mng & Res Inc		Common Stock			—				756
		China Sunergy Co Ltd		Common Stock			—				15
		China Yuchai International Ltd		Common Stock			—				41,370
		Chipotle Mexican Grill Inc		Common Stock			—				11,821
		Chipotle Mexican Grill Inc		Common Stock			—				1,679,630
		Churchill Downs Inc		Common Stock			—				5,416
		Ciena Corp New Delaware		Common Stock			—				24
		Cigna Corp		Common Stock			—				4,200
		Cintas Corp		Common Stock			—				2,785
		Cintas Corp		Common Stock			—				422,987
		Circuit City Stores Inc		Common Stock			—				—
		Cisco Systems		Common Stock			—				211,858
		Cisco Systems		Common Stock			—				2,024,593
		Citadel Broadcasting Corp		Common Stock			—				—
		Citigroup Inc		Common Stock			—				1,078,666
		Citigroup Inc		Common Stock			—				154,068
		CitrixSystems Inc		Common Stock			—				12,144
		City Bank		Common Stock			—				32
		Clarent Corp		Common Stock			—				—
		Clean Energy Fuels Corp		Common Stock			—				79,121
		Cleco Corp		Common Stock			—				114,300
		Cliffs Nat Res Inc		Common Stock			—				75
		Cloud Peak Energy Inc		Common Stock			—				2,898
		Coach Inc		Common Stock			—				1,532,879
		Coca Cola Co		Common Stock			—				155,546
		Coca Cola Co		Common Stock			—				960,826
		Coeur D Alene Mines Corp		Common Stock			—				21,123
		Cognex Corp		Common Stock			—				7,158
		Cognizant Tech Solutions		Common Stock			—				1,151,210
		Coinstar Inc		Common Stock			—				5,477
		Coldwater Creek Inc		Common Stock			—				2,360
		Collective Brands Inc		Common Stock			—				20,837
		Colonial Bancgroup		Common Stock			—				—
		Columbia Laboratories Inc		Common Stock			—				1,500
		Comcast Corp		Common Stock			—				1,077,475
		Commtouch Software Limited		Common Stock			—				1,352
		Concho Resources		Common Stock			—				1,347,387
		Conoco Phillips		Common Stock			—				200,772
		Consol Energy Inc		Common Stock			—				953
		Consolidated Edison Hldg Co Inc		Common Stock			—				77,264
		Constellation Brands Inc		Common Stock			—				6,201
		Constellation Energy Group		Common Stock			—				1,626
		Constellation Energy Partners LLC		Common Stock			—				11,760

 

21

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Corelogic Inc		Common Stock			—				647
		Corning Inc		Common Stock			—				16,117
		Corporate Executive Brd Co		Common Stock			—				1,715
		Cortex Pharmaceuticals Inc		Common Stock			—				383
		Costco Wholesale Corp		Common Stock			—				7,895
		Costco Wholesale Corp		Common Stock			—				2,454,896
		Covidien Plc		Common Stock			—				893,764
		Covidien Plc		Common Stock			—				7,742
		Credit Suisse		Common Stock			—				6,570
		Credit Suisse		Common Stock			—				797,948
		Cree Inc		Common Stock			—				61,712
		Crocs Inc		Common Stock			—				13,958
		Cross Timbers Royalty Trust		Common Stock			—				733
		Cryptologic Limited Shs		Common Stock			—				474
		CSX Corp		Common Stock			—				5,613
		Ctrip Intl Ltd		Common Stock			—				25,272
		Cui Global Inc		Common Stock			—				95
		Cummins Inc		Common Stock			—				8,802
		CVR Partners LP		Common Stock			—				12,410
		CVS Caremark Corp		Common Stock			—				1,212,639
		CVS Corp		Common Stock			—				26,021
		Cyber-Care Inc		Common Stock			—				—
		Cyclacel Pharmaceuticals Inc		Common Stock			—				590
		Cytori Therapeutics Inc		Common Stock			—				935
		Cytosorbents Corp		Common Stock			—				1,200
		Cytrx Corp		Common Stock			—				2,520
		Dan River Inc		Common Stock			—				—
		Daulton Cap Corp		Common Stock			—				30
		Daystar Technologies Inc		Common Stock			—				3
		Decisionpoint Sys Inc		Common Stock			—				8
		Deckers Outdoor		Common Stock			—				34,007
		Deere & Co		Common Stock			—				85,126
		Delcath Systems Inc		Common Stock			—				4,188
		Dell Inc		Common Stock			—				2,414
		Delta Airlines Inc		Common Stock			—				710,507
		Delta Pete Corp		Common Stock			—				14
		Denbury Res Inc		Common Stock			—				20,219
		Dendreon Corp		Common Stock			—				135,759
		Denison Mines Corp		Common Stock			—				5,000
		Derma Sciences Inc		Common Stock			—				90,581
		Devon Energy Corp		Common Stock			—				1,047,383
		Devon Energy Corp		Common Stock			—				20,770
		Devry Inc		Common Stock			—				1,942
		Diamond Offshore Drilling Inc		Common Stock			—				829
		Diana Containerships Inc		Common Stock			—				218
		Diana Shipping Inc		Common Stock			—				16,678
		Digerati Technologies Inc		Common Stock			—				20
		Digital Angel Corp New		Common Stock			—				1,278
		Discover Finl Svcs		Common Stock			—				6,960

 

22

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Discovery Laboratories Inc		Common Stock			—				64
		Divine Inc		Common Stock			—				—
		Dolby Laboratories Inc		Common Stock			—				4,577
		Dollar General Corp		Common Stock			—				165
		Dollar Tree Inc		Common Stock			—				12,467
		Dominion Resources Inc		Common Stock			—				52,709
		Doral Finl Corp		Common Stock			—				48
		Dow Chemical Co		Common Stock			—				37,688
		Downey Finl Corp		Common Stock			—				—
		Dryships Inc		Common Stock			—				15,202
		DuPont		Common Stock			—				16,801
		Duke Energy Corp New		Common Stock			—				145,549
		Duke Realty Corp		Common Stock			—				5,423
		Dunkin Brands Group		Common Stock			—				608,264
		Dupont		Common Stock			—				762,249
		Dynamic Materials Corp		Common Stock			—				32,578
		Dynegy Incl		Common Stock			—				69
		ETrade Finl Corp		Common Stock			—				5,906
		Eagle Bulk Shipping Inc		Common Stock			—				94
		Eagle Rock Energy Partners LP		Common Stock			—				17,802
		Eastman Kodak Co		Common Stock			—				22,978
		Eaton Corp		Common Stock			—				13,059
		Eb2B commerce Inc		Common Stock			—				—
		Ebay Inc		Common Stock			—				8,007
		Ecolocap Solutions Inc		Common Stock			—				6
		E-commerce China Dangdang Inc		Common Stock			—				3,960
		Ecopetrol SA Spon		Common Stock			—				11,130
		EDAP Tms S.A.		Common Stock			—				51,038
		Edwards Lifesciences Corp		Common Stock			—				17,579,717
		Edwards Lifesciences Corp		Common Stock			—				245,046
		Elan Corp Plc		Common Stock			—				14,015
		Eldorado Gold Corp		Common Stock			—				13,710
		Elephant Talk Communications Corp		Common Stock			—				7,950
		Eline Entertainment Group Inc		Common Stock			—				—
		EMC Corp		Common Stock			—				2,442,899
		EMC Corp		Common Stock			—				21,325
		Emcore Corp		Common Stock			—				1,726
		Emergent Biosolutions Inc		Common Stock			—				5,052
		Emerson Electric Co		Common Stock			—				55,193
		Emulex Corp New		Common Stock			—				789
		Enbridge Energy Partners L P		Common Stock			—				3,319
		Enbridge Inc		Common Stock			—				3,741
		Encana Corp		Common Stock			—				14,883
		Energy Conversion Devices Inc		Common Stock			—				2
		Energy Transfer Partners LP		Common Stock			—				54,113
		Energysolutions Inc Depositary Sh		Common Stock			—				309
		Enerplus Corporation		Common Stock			—				12,888
		Enron Corp		Common Stock			—				—
		Ens Co Plc Sponsored		Common Stock			—				2,399

 

23

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Enterprise Products Pptns LP		Common Stock			—				71,468
		Entravision Conmunications Corp		Common Stock			—				234
		Entremed Inc		Common Stock			—				35
		EOG Resources Inc		Common Stock			—				1,352,055
		Epix Pharmaceuticals Inc		Common Stock			—				7
		Estee Lauder Companies		Common Stock			—				1,956,374
		Evergreen Solar Inc		Common Stock			—				84
		Exelixis Inc		Common Stock			—				8,234
		Exelon Corp		Common Stock			—				48,149
		Exelon Corp		Common Stock			—				1,024,012
		Exeter Resource Corp		Common Stock			—				10,440
		Exide Technologies		Common Stock			—				2,630
		Expedia Inc		Common Stock			—				900
		Express Scripts Inc		Common Stock			—				1,818,970
		Express Scripts Inc		Common Stock			—				4,469
		Extorre Gold Mines Limited		Common Stock			—				29,520
		Exxon Mobil Corp		Common Stock			—				62,258
		Exxon Mobil Corp		Common Stock			—				2,671,158
		Fairpoint Communications Inc		Common Stock			—				—
		Family Dollar Stores Inc		Common Stock			—				2,998
		Fastenal Co		Common Stock			—				6,542
		Federal Natl Mtg Assn		Common Stock			—				4,024
		Fedex Corp		Common Stock			—				8,351
		Ferrellgas Partners LP		Common Stock			—				5,971
		Fifth St Fin Corp		Common Stock			—				28,710
		Finisar Corp		Common Stock			—				4,186
		First American Financial Corp		Common Stock			—				634
		First China Pharmaceutical Group Inc		Common Stock			—				540
		First Physicians Cap Group Inc		Common Stock			—				—
		First Solar Inc		Common Stock			—				12,322
		Flagstar Bancorp Inc		Common Stock			—				508
		Flextronics International		Common Stock			—				5,660
		Flextronics Ltd		Common Stock			—				876,200
		Fluor Corp New		Common Stock			—				2,554
		Fmi Holdings Ltd		Common Stock			—				3
		Focus Gold Corp		Common Stock			—				405
		Food Technology Svc Inc		Common Stock			—				2,600
		Ford Motor Co		Common Stock			—				208,141
		FortressInvt Group LLC		Common Stock			—				1,690
		Forward Inds		Common Stock			—				167
		Foster Wheeler AG		Common Stock			—				16,269
		Franklin Res Inc		Common Stock			—				25,555
		Freddie Mac		Common Stock			—				3,869
		Freeport Mcmoran Copper & Gold Inc.		Common Stock			—				66,110
		Fresenius Kabi Pharmaceuticals Hldg Inc		Common Stock			—				—
		Frontier Communications Corp		Common Stock			—				8,139
		Fuel Sys Solutions Inc		Common Stock			—				2,061
		Fuel Tech Inc		Common Stock			—				513
		Fusion-Io		Common Stock			—				1,694

 

24

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Futuremedia Plc		Common Stock			—				—
		Gamco Global Gold Nat Res		Common Stock			—				3,685
		Gas Nat Inc		Common Stock			—				3,426
		Gazoo Energy Group Inc		Common Stock			—				25
		Geeknet Inc		Common Stock			—				3,802
		General Dynamics Corp		Common Stock			—				9,962
		General Electric Co		Common Stock			—				1,173,078
		General Electric Co		Common Stock			—				430,004
		General Mills Inc		Common Stock			—				72,738
		General Motors Co		Common Stock			—				817,018
		General Motors Co		Common Stock			—				20,270
		General Steel Hldgs Inc		Common Stock			—				890
		Generex Biotechnology Corp		Common Stock			—				975
		Genetic Technologies Ltd		Common Stock			—				30
		Geopharma Inc		Common Stock			—				4
		Geron Corp		Common Stock			—				1,480
		Giant Interactive Group Inc		Common Stock			—				1,416
		Gilead Sciences Inc		Common Stock			—				56,770
		Glaxosmithkline Plc		Common Stock			—				2,282
		GMX Res Inc		Common Stock			—				250
		Gold Amern Mng Corp		Common Stock			—				155
		Goldbrook Ventures Inc		Common Stock			—				6,776
		Gold Corp Inc New		Common Stock			—				13,357
		Goldman Sachs Group		Common Stock			—				532,894
		Goldman Sachs Group		Common Stock			—				88,616
		Google Inc		Common Stock			—				4,182,054
		Google Inc		Common Stock			—				54,902
		Grace W R & Co Del		Common Stock			—				9,184
		Grand Pacaraima Gold Corp		Common Stock			—				2
		Great Basin Gold		Common Stock			—				12,754
		Great Wolf Resorts Inc		Common Stock			—				290
		Green Earth Technologies Inc		Common Stock			—				5,400
		Green Mtn Coffee Roasters Inc		Common Stock			—				11,213
		Greenhunter Energy Inc		Common Stock			—				—
		Grid Pete Corp		Common Stock			—				5
		GSI Technology Inc		Common Stock			—				2,340
		Guess? Inc		Common Stock			—				1,074
		Halliburton Co		Common Stock			—				17,255
		Halozyme Therapeutics Inc		Common Stock			—				71,648
		Hansen Natural Corp		Common Stock			—				2,211
		Hanwha Solarone Company Ltd		Common Stock			—				10
		Harley Davidson Inc		Common Stock			—				1,261,751
		Harley Davidson Inc		Common Stock			—				3,887
		Hartford Finl Svcs Group Inc		Common Stock			—				2,099
		Hasbro Inc		Common Stock			—				2,870
		Hauppague Digital		Common Stock			—				1,200
		HCP Inc		Common Stock			—				17,556
		Headwaters Inc		Common Stock			—				2,775
		Health Care Reit Inc		Common Stock			—				5,452

 

25

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Healthwarehouse		Common Stock			—				148
		Hecla Mining Co		Common Stock			—				5,230
		Helix Energy Solutions Group Inc		Common Stock			—				3,555
		Hellenic Telem		Common Stock			—				164
		Henry Jack & Associates Inc		Common Stock			—				6,251
		Hercules Offshore Inc		Common Stock			—				35,964
		Hewlett-Packard Co		Common Stock			—				36,097
		Hollyfrontier Corporation		Common Stock			—				7,020
		Home Depot Inc		Common Stock			—				118,132
		Home Solutions Amer Inc		Common Stock			—				—
		Honeywell International Inc		Common Stock			—				1,983,955
		Honeywell International Inc		Common Stock			—				32,721
		Horizon Lines Inc		Common Stock			—				174
		Hospira Inc		Common Stock			—				7,350
		Howard Hughes Corp		Common Stock			—				1,148
		HPC Pos Sys		Common Stock			—				1,312
		HSBC Holdings Plc		Common Stock			—				23,451
		HSN Inc Del		Common Stock			—				435
		Hugoton Rty Tr Tex		Common Stock			—				12,362
		Human Genome Sciences Inc		Common Stock			—				50,429
		Huntington Bancshares Inc		Common Stock			—				25,926
		Hydrogenics Corporation		Common Stock			—				378
		Hyperdynamics Corp		Common Stock			—				12,740
		Iac/Interactivecrp		Common Stock			—				1,321
		IBM		Common Stock			—				3,221,144
		IBM		Common Stock			—				27,582
		ICG Group Inc		Common Stock			—				579
		Idearc Inc		Common Stock			—				—
		IGO Inc		Common Stock			—				39
		Illinois Tool Works		Common Stock			—				13,798
		Illumina Inc		Common Stock			—				635,353
		Imaging3 Inc		Common Stock			—				18,177
		Imation Corp		Common Stock			—				573
		Imax Corp		Common Stock			—				3,666
		Immunocellular Therapeutics Ltd		Common Stock			—				490
		Immunomedics Inc		Common Stock			—				3,330
		Incyte Genomics Inc		Common Stock			—				26,943
		Indevus Pharmaceuticals Inc		Common Stock			—				—
		India Globalization Cap Inc		Common Stock			—				2,890
		Indymac Bancorp Inc		Common Stock			—				—
		Infinera Corp		Common Stock			—				18,758
		Infosys Technologies Limited		Common Stock			—				2,569
		ING Prime Rate Tr		Common Stock			—				6,277
		Ingles Mkts Inc		Common Stock			—				15,060
		Inhibitex Inc		Common Stock			—				32,820
		Inovio Biomedical Corp		Common Stock			—				2,054
		Inplay Technologies Inc		Common Stock			—				—
		Insmed Incorporated		Common Stock			—				756
		Insys Therapeutics Inc		Common Stock			—				288

 

26

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Intel Corp		Common Stock			—				135,002
		Intermune Inc		Common Stock			—				378
		International Game Technology		Common Stock			—				1,204
		International Tower Hill Mines		Common Stock			—				4,360
		Internet Holders		Common Stock			—				14,042
		Interoil Corp		Common Stock			—				19,429
		Interval Leisure Group Inc		Common Stock			—				163
		Intl Fuel Tech Inc		Common Stock			—				884
		Intl Speedway		Common Stock			—				1,014
		Intuitive Surgical Inc		Common Stock			—				926
		Invensense Inc		Common Stock			—				5,976
		Invesco Ltd		Common Stock			—				1,167,012
		Invesco Van Kampen Sr Ine		Common Stock			—				12,134
		Invo Bioscience Inc		Common Stock			—				20
		IPG Photonics Corp		Common Stock			—				6,435
		Ironwood Gold Corp		Common Stock			—				1,707
		Irvine Sensors Corp		Common Stock			—				60
		Ivanhoe Energy		Common Stock			—				7,616
		Ivax Diagnostics Inc		Common Stock			—				2,200
		JA Solar Hldgs Co Ltd		Common Stock			—				1,777
		Jabil Circuit Inc		Common Stock			—				19,713
		JDS Uniphase Corp		Common Stock			—				9,260
		Jensen Portfolio Inc		Common Stock			—				62,891
		Jetblue Awys Corp		Common Stock			—				11,180
		John Bean Technologies Corp		Common Stock			—				343
		Johnson & Johnson		Common Stock			—				152,466
		Johnson & Johnson		Common Stock			—				1,182,367
		Johnson & Johnson		Common Stock			—				1,736,297
		Johnson Controls		Common Stock			—				1,514,767
		Johnson Ctls Inc		Common Stock			—				38,773
		Joy Global Inc		Common Stock			—				5,623
		JPMorgan Chase & Co		Common Stock			—				2,259,946
		JPMorgan Chase & Co		Common Stock			—				50,028
		Juniper Networks Inc		Common Stock			—				48,372
		K Swiss Inc		Common Stock			—				5,840
		Kandi Technologies Corp		Common Stock			—				7,400
		KB Homes		Common Stock			—				8,569
		Keegan Res Inc		Common Stock			—				13,405
		Kellogg Company		Common Stock			—				14,296
		Kennametal Inc		Common Stock			—				6,099
		Keryx Biopharmaceuticals Inc		Common Stock			—				3,985
		Key Corp New		Common Stock			—				7,690
		Khd Humboldt Wedag Intl (Dt) Ag		Common Stock			—				2,229
		Kilroy Realty Corp		Common Stock			—				2,423
		Kimberly Clark Corp		Common Stock			—				29,424
		Kinder Morgan Energy Partners		Common Stock			—				265,284
		Kinder Morgan Mgmt		Common Stock			—				7,852
		Kinross Gold Corp		Common Stock			—				20,520
		Knightsbridge Tank		Common Stock			—				14,746

 

27

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Kobex Minerals Inc		Common Stock			—				610
		Kodiak Oil & Gas Corp		Common Stock			—				30,400
		Kohl’s Corp		Common Stock			—				56,903
		Kraft Foods Inc		Common Stock			—				63,216
		Krispy Kreme Doughnuts Inc		Common Stock			—				6,540
		Kronos Worldwide Inc		Common Stock			—				75
		KV Pharmaceutical Co		Common Stock			—				1,029
		L-3 Communications Hldgs Inc		Common Stock			—				36,728
		Laboratory Corp of America Hldgs		Common Stock			—				17,194
		Lakes Entmt Inc		Common Stock			—				9,250
		LDK Solar Co Ltd		Common Stock			—				3,264
		Leap Wireless Intl Inc		Common Stock			—				—
		Legacy Resvs LP		Common Stock			—				2,823
		Lehman Bros Hldgs Corp		Common Stock			—				52
		Level 3 Communications Inc		Common Stock			—				5,658
		Liberator Med Hldgs Inc		Common Stock			—				618
		Life Technologies Corp		Common Stock			—				1,010,962
		Life Technologies Corp		Common Stock			—				3,891
		Lifeline Biotechnologies Inc		Common Stock			—				—
		Li-Ion Motors Corp		Common Stock			—				348
		Lilly Eli & Co		Common Stock			—				2,551
		Limelight Networks Inc		Common Stock			—				2,146
		Limited Brands Inc		Common Stock			—				10,088
		Linkedin Corp		Common Stock			—				659,770
		Linkedin Corp		Common Stock			—				945
		Linn Energy LLC		Common Stock			—				113,730
		Linux Gold Corp		Common Stock			—				150
		Live Nation Entertainment Inc		Common Stock			—				141
		Lloyds Banking Group		Common Stock			—				3,140
		Loral Space & Communcations Ltd		Common Stock			—				—
		Lowes Cos		Common Stock			—				34,730
		Lowes Cos		Common Stock			—				600,102
		Lowes Cos		Common Stock			—				1,070,625
		LPBP Inc		Common Stock			—				—
		LSI Logic Corp		Common Stock			—				541
		Lululemon Athletica		Common Stock			—				1,132,024
		Lumber Liquidators Hldgs Inc		Common Stock			—				20,397
		LVMH Moet Hennessy		Common Stock			—				352,417
		Lynas Corporation		Common Stock			—				536
		LyondellBasell		Common Stock			—				276,036
		LyondellBasell		Common Stock			—				16,245
		M2003 Plc Sponsored ADR		Common Stock			—				—
		Mahanagar Tel Nigam Ltd		Common Stock			—				161
		Mako Surgical Corp		Common Stock			—				7,563
		Mammoth Energy Group Inc New		Common Stock			—				—
		Manhattan Pharmaceuticals Inc		Common Stock			—				1
		Manhattan Scientific Inc		Common Stock			—				4,539
		Manitex Intl Inc		Common Stock			—				2,968
		Manitowoc Inc		Common Stock			—				1,746

 

28

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Mannkind Corp		Common Stock			—				26,250
		Marathon Oil Corp		Common Stock			—				41,980
		Marathon Oil Corp		Common Stock			—				547,961
		Marathon Petroleum Corp		Common Stock			—				198,970
		Marathon Petroleum Corp		Common Stock			—				23,852
		Markel Corp Hldg Co		Common Stock			—				34,832
		Marsh & McLennan Cos		Common Stock			—				1,033,970
		Masco Corp		Common Stock			—				4,978
		Mastercard Inc		Common Stock			—				3,292,719
		Mastercard Inc		Common Stock			—				29,826
		Maxwell Tech Inc		Common Stock			—				9,744
		McDonalds Corp		Common Stock			—				36,504
		McDonalds Corp		Common Stock			—				2,031,901
		Mead Johnson Nutrition Co		Common Stock			—				1,486,991
		Medclean Technologies Inc		Common Stock			—				240
		Medical Marijuana Inc		Common Stock			—				187
		Medicines Co		Common Stock			—				9,320
		Medtronic Inc		Common Stock			—				8,408
		Melco Pbl Entmnt Ltd		Common Stock			—				3,367
		Merck & Co Inc		Common Stock			—				1,443,215
		Merck & Co Inc		Common Stock			—				119,858
		Merge Healthcare Inc		Common Stock			—				2,425
		Metabolix Inc		Common Stock			—				2,275
		Metalico Inc		Common Stock			—				1,935
		MetLife Inc		Common Stock			—				942,574
		MetLife Inc		Common Stock			—				1,507,810
		MetLife Inc		Common Stock			—				312
		MFA Finl Inc		Common Stock			—				8,091
		MFC Industrial Ltd		Common Stock			—				720
		Mgic Invst Corp		Common Stock			—				41,969
		MGM Mirage		Common Stock			—				8,688
		Micro Imaging Technology Inc		Common Stock			—				120
		Micron Technology		Common Stock			—				629
		Microsoft Corp		Common Stock			—				107,958
		Microsoft Corp		Common Stock			—				1,146,384
		Microsoft Corp		Common Stock			—				2,551,794
		Microvision Inc		Common Stock			—				7,200
		Miller Energy Res Inc		Common Stock			—				29,295
		Miller Herman Inc		Common Stock			—				1,845
		Mindspeed Technologies Inc		Common Stock			—				27
		Minefinders Ltd Corp		Common Stock			—				10,600
		Mirant Corp		Common Stock			—				—
		Miravant Medical Technology		Common Stock			—				—
		Modern Energy Corp		Common Stock			—				20
		Molecular Insight Pharmaceuticals Inc		Common Stock			—				—
		Moly Corp Inc		Common Stock			—				2,878
		Momenta Pharmaceuticals Inc		Common Stock			—				3,443
		Monsanto Co		Common Stock			—				1,017,577
		Monsanto Co		Common Stock			—				2,360,502

 

29

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Monsanto Co		Common Stock			—				3,403
		Morgan Stanley		Common Stock			—				38,849
		Morgan Stanley		Common Stock			—				918,768
		Morgan Stanley		Common Stock			—				20,879
		Morningstar Inc		Common Stock			—				7,729
		Mosaic Co New		Common Stock			—				3,027
		Motorola Mobility Hldgs Inc		Common Stock			—				2,406
		Motorola Solutions Inc		Common Stock			—				3,287
		Motricity Inc		Common Stock			—				13,500
		Mueller Wtr Prods Inc		Common Stock			—				6,100
		Multiband Corp		Common Stock			—				646
		Multicell Technologies Inc		Common Stock			—				14
		Myriad Genetics Inc		Common Stock			—				461
		Nanogen Inc		Common Stock			—				10
		Nanosphere Inc		Common Stock			—				110
		NatcoreTechnology Inc		Common Stock			—				1,226
		National Bank of Greece		Common Stock			—				792
		National Grid		Common Stock			—				9,696
		National Oilwell		Common Stock			—				1,130,439
		Navios Maritime Holdings Inc		Common Stock			—				19,953
		Navios Maritime Partners LP		Common Stock			—				7,370
		Neon Communications Inc		Common Stock			—				—
		Nestle SA		Common Stock			—				5,775
		Netapp Inc		Common Stock			—				17,410
		Netflix Inc		Common Stock			—				26,122
		Netgear Inc		Common Stock			—				3,357
		Netlist Inc		Common Stock			—				5,020
		Neumedia Inc		Common Stock			—				18
		New Centy Finl Corp Md		Common Stock			—				—
		New Ireland Fd Inc		Common Stock			—				4,916
		Newcastle Invt Corp		Common Stock			—				930
		Nextera Energy Inc		Common Stock			—				41,403
		Nielsen Holdings		Common Stock			—				11,876
		Nike Inc		Common Stock			—				2,465,809
		Nike Inc		Common Stock			—				5,725
		Nokia Corp		Common Stock			—				20,915
		Nordic American Tanker Shipping Ltd		Common Stock			—				35,970
		Nortel Networks Corp		Common Stock			—				1
		North American Palladium		Common Stock			—				5,100
		Northern Oil & Gas Inc		Common Stock			—				10,911
		Northfield Laboratories Inc		Common Stock			—				—
		Novartis AG		Common Stock			—				511,134
		Novartis AG		Common Stock			—				920,606
		Novartis AG		Common Stock			—				20,219
		Novatel Wireless Inc		Common Stock			—				3,756
		Novavax Inc		Common Stock			—				1,008
		Novelos Therapeutics Inc New		Common Stock			—				23
		Novo Nordisk		Common Stock			—				1,946,664
		Novo Nordisk A/S		Common Stock			—				6,339

 

30

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		NPS Pharmaceuticals Inc		Common Stock			—				7,249
		NRG Energy Inc		Common Stock			—				6,958
		Nuance Communications Inc		Common Stock			—				12,580
		Nucor Corp		Common Stock			—				74,455
		Nutracea		Common Stock			—				2,331
		Nvidia Corp		Common Stock			—				26,334
		Nxstage Med Inc		Common Stock			—				6,845
		NYSE Euronext		Common Stock			—				1,984
		O Reilly Automotive Inc		Common Stock			—				7,036
		Occidental Petroleum		Common Stock			—				1,173,753
		Occidental Petroleum		Common Stock			—				6,612
		Occidental Petroleum		Common Stock			—				1,383,881
		Ocean Rig Udw Inc		Common Stock			—				586
		Oclaro Inc		Common Stock			—				764
		Odyssey Marine Exploration Inc		Common Stock			—				822
		Oilsands Quest Inc		Common Stock			—				208
		Olin Corp New		Common Stock			—				2,135
		Olympic Steel Inc		Common Stock			—				23,320
		Omega Navigation Enterprises Inc		Common Stock			—				569
		Omnitek Engr Corp		Common Stock			—				3,680
		Oncogenex Pharmaceuticals Inc		Common Stock			—				200
		Oncolytics Biotech Inc		Common Stock			—				607,620
		Opexa Therapeutics Inc		Common Stock			—				27,900
		Optigenex Inc		Common Stock			—				—
		Oracle Corp		Common Stock			—				2,092,647
		Oracle Corp.		Common Stock			—				43,354
		Orbital Sciences Corp		Common Stock			—				11,624
		Orchid Cellmark Inc		Common Stock			—				223
		Orexigen Therapeutics Inc		Common Stock			—				1,610
		Origin Agritech Limited		Common Stock			—				2,360
		Osi Systems Inc		Common Stock			—				12,195
		Osiris Therapeutics Inc		Common Stock			—				5,912
		Otelco Inc		Common Stock			—				3,349
		Owens Illinois Inc		Common Stock			—				461,412
		Owens Illinois Inc		Common Stock			—				779,231
		Oxigene Inc		Common Stock			—				99
		Pace Oil & Gas Ltd		Common Stock			—				334
		Pacific Ethanol Inc		Common Stock			—				36,527
		Palatin Technologies Inc		Common Stock			—				20
		Panacos Pharmaceuticals Inc		Common Stock			—				1
		Pass Minerals Intl Inc		Common Stock			—				7,797
		Patriot Coal Corp		Common Stock			—				22,446
		Patterson-Uti Energy Inc		Common Stock			—				11,988
		Pay Chest Inc		Common Stock			—				—
		Paychex Inc		Common Stock			—				12,150
		PDI Inc		Common Stock			—				642
		PDL Biopharma Inc		Common Stock			—				9,436
		Peabody Energy Corp		Common Stock			—				16,577
		Penn Va Resource Partners LP		Common Stock			—				1,300

 

31

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Penn West Petroleum Ltd		Common Stock			—				10,371
		Pennymac Mortgage Investment		Common Stock			—				13,929
		Pepco Hldgs Inc		Common Stock			—				21,151
		Pepisco Inc		Common Stock			—				1,068,431
		Pepsico Inc		Common Stock			—				30,795
		Permian Basin Rty		Common Stock			—				7,130
		Petmedexpress Inc		Common Stock			—				1,076
		Petrochina Co Ltd		Common Stock			—				1,492
		Petroleo Brasileiro SA Petrobras		Common Stock			—				8,735
		Petsmart Inc		Common Stock			—				3,590
		Pfizer Inc		Common Stock			—				126,320
		Pfizer Inc		Common Stock			—				1,113,814
		Pfizer Inc		Common Stock			—				2,639,163
		Pharmos Corp		Common Stock			—				2
		Philip Morris Intl Inc		Common Stock			—				123,952
		Pilgrims Pride Corp		Common Stock			—				1,584
		Pilot Gold Inc		Common Stock			—				950
		Pioneer Drilling Co		Common Stock			—				968
		Pitney Bowes Inc		Common Stock			—				12,978
		Platinum Studios Inc		Common Stock			—				20
		Plum Creek Timber CoInc		Common Stock			—				10,968
		Pluristem Therapeutics Inc		Common Stock			—				1,195
		PMC-Sierra Inc		Common Stock			—				3,857
		PMI Group Inc		Common Stock			—				263
		PNC Finl Svcs Group		Common Stock			—				7,901
		Polymedix Inc		Common Stock			—				7,650
		Polymet Mining Corp		Common Stock			—				20,967
		Pop3 Media Corp		Common Stock			—				—
		Portfolio Recovery Assocs Inc		Common Stock			—				1,080
		Positiveid Corp		Common Stock			—				1,350
		Potash Corp Sask Inc		Common Stock			—				270,280
		Power 3 Med Prods Inc		Common Stock			—				14
		Powerwave Technologies Inc		Common Stock			—				208
		PPG Industries		Common Stock			—				33,396
		Prana BiotechnologyLtd		Common Stock			—				1,470
		Praxair Inc		Common Stock			—				2,916
		Precision Castparts Corp		Common Stock			—				1,977
		Precision Castparts Corp		Common Stock			—				3,152,418
		Priceline.com Inc		Common Stock			—				1,246,627
		Primero Mining Corp		Common Stock			—				4,508
		Procter & Gamble Co		Common Stock			—				116,433
		Procter & Gamble Co		Common Stock			—				883,108
		Proctor & Gamble Co		Common Stock			—				2,296,739
		Progress Energy Inc		Common Stock			—				7,666
		Prologis Inc		Common Stock			—				277
		Prospect Energy Corp		Common Stock			—				10,748
		Protalix Biotherapeutics Inc		Common Stock			—				1,997
		Provident Energy Ltd		Common Stock			—				85
		Proxim Wireless Corp		Common Stock			—				112

 

32

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Prudential Finl Inc		Common Stock			—				516
		PT Telekomunikasi Indonesia		Common Stock			—				20,227
		Public Service Enterprise		Common Stock			—				384,809
		Qualcomm Inc		Common Stock			—				1,967,010
		Quality Systems		Common Stock			—				34,171
		Qualm Inc		Common Stock			—				54,720
		Quantum Fuel Sys TechnologiesWorldwide Inc		Common Stock			—				237
		Quepasa Corp		Common Stock			—				16,600
		Quest Diagnostics Inc		Common Stock			—				14,515
		Quest Rare Minerals Ltd		Common Stock			—				2,200
		Radian Group Inc		Common Stock			—				1,189
		Radient Pharmaceuticals Corp		Common Stock			—				30
		Ralph Lauren Corp		Common Stock			—				2,192,803
		Rambus Inc		Common Stock			—				7,550
		Ramp Corp		Common Stock			—				—
		Randgold Res Ltd		Common Stock			—				5,105
		Range Resources Corp		Common Stock			—				15,495
		Rayonier Inc		Common Stock			—				17,406
		Raystream Inc		Common Stock			—				180
		Raytheon Co		Common Stock			—				2,454
		Realty Ine Corp		Common Stock			—				5,289
		Red Hat Inc		Common Stock			—				1,156,829
		Regions Finl Corp		Common Stock			—				3,353
		Renren Inc		Common Stock			—				266
		Repligen Corp		Common Stock			—				1,215
		Research in Motion Ltd		Common Stock			—				30,900
		Resource Cap Corp		Common Stock			—				101,836
		Retail Opportunity Invts Corp		Common Stock			—				7,329
		Reynolds Amern Inc		Common Stock			—				54,199
		Rino Intl Corp		Common Stock			—				18
		Rio Tinto Plc		Common Stock			—				2,470
		Rock-Tenn Co		Common Stock			—				8,655
		Rockwell Automation Inc		Common Stock			—				29,348
		Rockwell Medical Tech Inc		Common Stock			—				2,143
		Roper Industries		Common Stock			—				322,854
		Rosetta Stone Inc		Common Stock			—				763
		Royal Bk Scotland Group Plc		Common Stock			—				319
		Royal Dutch Shell		Common Stock			—				7,309
		Royal Gold Inc		Common Stock			—				13,486
		Rubicon Minerals Corp		Common Stock			—				73,710
		Ryland Group Inc		Common Stock			—				3,940
		Saba Software Inc		Common Stock			—				986
		Safer Shot Inc		Common Stock			—				20
		Saks Inc		Common Stock			—				4,875
		Salesforce.com Inc		Common Stock			—				1,918,669
		Samson Oil & Gas Ltd		Common Stock			—				1,950
		San Gold Corporation		Common Stock			—				6,868
		San Juan Basin Rty Tr		Common Stock			—				20,476
		Sandisk Corp		Common Stock			—				19,684

 

33

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Sandridge Energy Inc		Common Stock			—				59,160
		Sandridge Mississippian Tr		Common Stock			—				6,318
		Sanmina-Sci Corp		Common Stock			—				1,862
		Sanofi ADR		Common Stock			—				945,775
		Sanofi ADR		Common Stock			—				1,494,469
		Sanofi ADR		Common Stock			—				13,203
		Santarus Inc		Common Stock			—				1,655
		Satcon Technology Corp		Common Stock			—				600
		Satyamputer Svcs Ltd		Common Stock			—				69
		Savient Pharmaceuticals Inc		Common Stock			—				2,230
		Schlumberger Ltd		Common Stock			—				1,944,018
		Schlumberger Ltd		Common Stock			—				98,101
		Seadrill Ltd		Common Stock			—				43,099
		Seagate Technology Plc		Common Stock			—				3,317
		Sears Hldgs Corp		Common Stock			—				9,534
		Seattle Genetics Inc		Common Stock			—				1,672
		Seawright Hldgs Inc		Common Stock			—				45
		Senior Housing Prop Trust		Common Stock			—				22,440
		Sequans Communications		Common Stock			—				3,336
		Ship Finance International Limited		Common Stock			—				266
		Shire Plc		Common Stock			—				2,868,488
		Sigma Designs		Common Stock			—				600
		Silicon Image Inc		Common Stock			—				1,410
		Silver Wheaton Corp		Common Stock			—				5,586
		Silver Wheaton Corp		Common Stock			—				47,807
		Silver Corp Metals Inc		Common Stock			—				38,400
		Sirius XM Radio Inc		Common Stock			—				162,109
		Skyworks Solutions Inc		Common Stock			—				35,441
		Smith & Wesson Hldg Corp		Common Stock			—				2,180
		Smurfit Stone Container		Common Stock			—				—
		Sociedad Quimica Minera De Chile		Common Stock			—				269,250
		Socket Mobile Inc		Common Stock			—				15,613
		Solar Cap Ltd		Common Stock			—				9,075
		Sonic Corp		Common Stock			—				6,730
		Sothebys Hldgs Inc		Common Stock			—				1,141
		Southern Co		Common Stock			—				236,698
		Southern Copper Corp		Common Stock			—				47,516
		Southwest Airlines Co		Common Stock			—				939,519
		Southwest Airlines Co		Common Stock			—				6,849
		Southwestern Energy Co		Common Stock			—				441,754
		Spectra Energy Corp		Common Stock			—				36,826
		Spectranetics Corp		Common Stock			—				16,750
		Spirit Aerosystems Hldgs Inc		Common Stock			—				1,559
		Spongetech Delivery Sys Inc		Common Stock			—				—
		Sports Concepts Inc		Common Stock			—				—
		Sprint Corp		Common Stock			—				24,044
		Sprott Physical Silver Trust		Common Stock			—				54,808
		St Jude Medical Inc		Common Stock			—				19,679
		Standard Pkg Corp		Common Stock			—				5,361

 

34

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Stanley Black & Decker		Common Stock			—				397,358
		Star Bulk Carriers Corp Shs		Common Stock			—				225
		Starbucks Corp		Common Stock			—				2,949,951
*		State Street Corp		Common Stock			—				122
*		State Street Corp		Common Stock			—				1,107,071
		Statoil Asa		Common Stock			—				5,950
		Stem Cell Innovations Inc		Common Stock			—				—
		Stemcells Inc		Common Stock			—				148
		Sterlite Inds India Ltd		Common Stock			—				499
		Stevia Corp		Common Stock			—				346
		Stonemor Partners LP		Common Stock			—				7,034
		Strategic Amern Oil Corp		Common Stock			—				990
		Strategic Hotel & Resort Inc		Common Stock			—				2,148
		Stryker Corp		Common Stock			—				1,591
		Subjex Corp		Common Stock			—				3
		Sulphco Inc		Common Stock			—				6
		Suncor Energy		Common Stock			—				3,147
		Sunesis Pharmaceuticals Inc		Common Stock			—				2,143
		Sunoco Inc		Common Stock			—				1,317,034
		Suntech Pwr Hldgs Co		Common Stock			—				608
		Suntrust Banks Inc		Common Stock			—				3,975
		Surebeam Corp		Common Stock			—				—
		Surewest Communications		Common Stock			—				670
		Symantec Corp		Common Stock			—				790,047
		Synovus Finl Corp		Common Stock			—				4,134
		Syntax Brillian Corp		Common Stock			—				—
		Sysco Corp		Common Stock			—				756,259
		Sysco Corp		Common Stock			—				12,436
		Taiwan Semiconductor Manufacturing		Common Stock			—				5,190
		Talon Therapeutics Inc		Common Stock			—				5,944
		Target Corp		Common Stock			—				19,976
		Taseko Mines Ltd		Common Stock			—				43,923
		Taser International Inc		Common Stock			—				12,288
		Tata Mtrs Ltd		Common Stock			—				14,944
		Te Connectivity Ltd		Common Stock			—				678
		Teck Inc Ltd		Common Stock			—				7,059
		Telefonica SA		Common Stock			—				10,896
		Telestone Technologies Corp		Common Stock			—				4,160
		Tencent Holdings Ltd		Common Stock			—				20,124
		Tencent Holdings Ltd		Common Stock			—				614,803
		Tenet Healthcare Corp		Common Stock			—				12,825
		Terex Corp New		Common Stock			—				1,013
		Terra Nitrogen Co		Common Stock			—				11,541
		Tesla Motors Inc		Common Stock			—				2,856
		Tesoro Pete Corp		Common Stock			—				748
		Teva Pharmaceutical Inds Ltd		Common Stock			—				36,430
		Texas Instruments		Common Stock			—				1,138,821
		Texas Instruments		Common Stock			—				1,696,728
		Texas Pacific Land Trust		Common Stock			—				12,262

 

35

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		TGC Industries Inc		Common Stock			—				7,140
		Theragenics Corp		Common Stock			—				2,688
		Thomas Pptys Group Inc		Common Stock			—				1,338
		Thompson Creek Metals CoInc		Common Stock			—				87,696
		Thornburg Mtg Inc		Common Stock			—				—
		THQ Inc		Common Stock			—				4,940
		Threshold Pharmaceuticals Inc New		Common Stock			—				61
		Tiffany & Co		Common Stock			—				1,381,185
		Time Warner Cable Inc		Common Stock			—				2,479
		Time Warner Inc		Common Stock			—				1,303,163
		Time Warner Inc		Common Stock			—				2,424,241
		Time Warner Inc		Common Stock			—				5,710
		Titanium Metals Corp		Common Stock			—				1,498
		Torch Energy Royalty Trust		Common Stock			—				295
		Torchlight Energy Res Inc		Common Stock			—				18,000
		Toro Co		Common Stock			—				16,035
		Total ADR		Common Stock			—				1,134
		ToUSA Inc		Common Stock			—				4
		Toyota Motor Corp		Common Stock			—				23,303
		Transcanada Corp		Common Stock			—				8,734
		Transcontinental Realty Invs		Common Stock			—				1,639
		Transmeridian Expl Inc		Common Stock			—				—
		Transocean Ltd Zug Namen		Common Stock			—				65,320
		Transwitch Corp		Common Stock			—				4,192
		Travelers Cos Inc		Common Stock			—				1,361
		Tree Inc		Common Stock			—				11
		Trimedyne Inc		Common Stock			—				700
		Tripadvisor Inc		Common Stock			—				782
		TRW Automotive Hldgs Corp		Common Stock			—				3,260
		Turkcell Iletisim Hizmet		Common Stock			—				669
		Tyco International Ltd		Common Stock			—				1,028
		US Airways Group Inc		Common Stock			—				2,535
		US Energy Corp		Common Stock			—				757
		US Geothermal Inc		Common Stock			—				144
		US Shipping Partner		Common Stock			—				—
		UAL Corp New		Common Stock			—				—
		Ultra Petroleum Corp		Common Stock			—				3,556
		Ultra Petroleum Corp		Common Stock			—				288,327
		Umpqua Holdings Corp		Common Stock			—				1,859
		Under Armour Inc		Common Stock			—				6,102
		Unilever Plc		Common Stock			—				2,763
		Union Pacific Corp		Common Stock			—				2,129
		Union Pacific Corp		Common Stock			—				1,756,183
		Uniroyal Tech Corp		Common Stock			—				—
		United Parcel Svc Inc		Common Stock			—				12,222
		United States Steel Corp		Common Stock			—				91,813
		United Sts Gasoline		Common Stock			—				4,832
		United Sts Nat Gas Fd LP		Common Stock			—				92,378
		United Technologies Corp		Common Stock			—				11,649

 

36

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		United Technologies Corp		Common Stock			—				1,192,778
		United Health Group		Common Stock			—				140,189
		United Health Group		Common Stock			—				1,131,522
		United Health Group		Common Stock			—				22,992
		Universal Display Corp		Common Stock			—				8,439
		Universal Ins Hldgs Inc		Common Stock			—				4,843
		Uranerz Energy Corp		Common Stock			—				819
		Uranium One Inc		Common Stock			—				244
		Uranium Res Inc		Common Stock			—				1,452
		US Bancorp		Common Stock			—				422,223
		USEC Inc		Common Stock			—				1,767
		Vale SA		Common Stock			—				2,709
		Valeant Pharmaceuticals		Common Stock			—				636,533
		Valero Energy Corp		Common Stock			—				11,901
		Vasco Data Security Intl		Common Stock			—				2,830
		Vaso Active Pharmaceuticals Inc		Common Stock			—				20
		Velatel Global Communications Inc		Common Stock			—				700
		Ventas Inc		Common Stock			—				3,729
		Veolia Environnement		Common Stock			—				11,050
		Verenium Corp		Common Stock			—				89
		Verifone Hldgs Inc		Common Stock			—				15,984
		Verisign Inc		Common Stock			—				357
		Verizon Communications		Common Stock			—				252,459
		Vertex Pharmaceuticals		Common Stock			—				956,434
		Vertex Pharmaceuticals		Common Stock			—				19,926
		Via Networks Inc		Common Stock			—				396
		Via Pharmaceuticals Inc		Common Stock			—				—
		Viacom Inc		Common Stock			—				1,740,609
		Vimpel Ltd		Common Stock			—				17,093
		Viragen Inc		Common Stock			—				—
		Viral Genetics Inc		Common Stock			—				190
		Virexx Med Corp		Common Stock			—				—
		Viropharma Inc		Common Stock			—				2,739
		Viropro Inc		Common Stock			—				16,875
		Visa Inc		Common Stock			—				1,223,692
		Visa Inc		Common Stock			—				1,240,944
		VMware Inc		Common Stock			—				2,095,700
		VMware Inc		Common Stock			—				14,142
		Vodafone Group		Common Stock			—				7,008
		Vodafone Inc		Common Stock			—				2,125,296
		Vulcan Materials Co		Common Stock			—				1,377
		W & T Offshore Inc		Common Stock			—				6,363
		Walgreen Company		Common Stock			—				71,556
		Walmart Stores Inc		Common Stock			—				1,050,869
		Walmart Stores Inc		Common Stock			—				18,651
		Walt Disney		Common Stock			—				1,265,440
		Walt Disney		Common Stock			—				90,608
		Warner Chilcott Plc		Common Stock			—				3,310
		Washington Mutual Inc		Common Stock			—				1,303

 

37

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Washington Real Estate Invt		Common Stock			—				8,457
		Waste Management Inc		Common Stock			—				32,845
		Weatherford Int Ltd		Common Stock			—				29,280
		Weatherford Int Ltd		Common Stock			—				977,700
		Weingarten Rlty Invs		Common Stock			—				10,960
		Wells Fargo & Co		Common Stock			—				1,892,265
		Wells Fargo & Co		Common Stock			—				48,459
		Wellstar Intl Inc		Common Stock			—				—
		Wendys Company		Common Stock			—				4,690
		Westell Technologies Inc		Common Stock			—				2,220
		Western Asset High		Common Stock			—				10,268
		Western Cap Res Inc		Common Stock			—				—
		Western Digital Corp		Common Stock			—				15,475
		Western Pac Minerals Ltd		Common Stock			—				—
		Western Refng Inc		Common Stock			—				26,580
		Western Union Co		Common Stock			—				1,826
		Westport Innovations Inc		Common Stock			—				36,564
		Weyerhaeuser Co		Common Stock			—				14,936
		Whiting Pete Corp New		Common Stock			—				14,007
		Whole Foods Market Inc		Common Stock			—				1,931,424
		Williams Cos Inc		Common Stock			—				7,066
		Windstream Corp		Common Stock			—				80,332
		Winn Dixie Stores Inc		Common Stock			—				938
		Winner Med Group Inc		Common Stock			—				516
		Wintrust Financial Corp		Common Stock			—				14,043
		Women First Healthcare Inc		Common Stock			—				—
		Wonder Auto Technology Inc		Common Stock			—				442
		Wuxi Pharmatech Cayman Inc		Common Stock			—				4,416
		Wynn Resorts Ltd		Common Stock			—				5,807
		Xenoport Inc		Common Stock			—				12,764
		Xerox Corp		Common Stock			—				2,401
		Xinyuan Real Estate Co Ltd		Common Stock			—				263
		Xoma Ltd		Common Stock			—				1,111
		XPO Logistics Inc		Common Stock			—				27,788
		Xybernaut Corp		Common Stock			—				—
		Yahoo Inc		Common Stock			—				9,872
		Yamana Gold Inc		Common Stock			—				8,943
		Yingli Green Energy Hldg Co Ltd		Common Stock			—				760
		YM Biosciences Inc		Common Stock			—				8,700
		Yongye Intl Inc		Common Stock			—				9,138
		Youku.com Inc		Common Stock			—				7,835
		Youku.com Inc		Common Stock			—				222,920
		YRC Worldwide Inc		Common Stock			—				459
		Yum! Brands Inc		Common Stock			—				90,841
		Zalicus Inc		Common Stock			—				992
		Zap		Common Stock			—				154
		Zimmer Holdings Inc		Common Stock			—				53
		Zion Oil & Gas Inc		Common Stock			—				72
		Zion Oil & Gas Inc		Common Stock			—				150

 

38

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Zion Oil & Gas Inc		Common Stock			—				3,868
		Zoltek Cos Inc		Common Stock			—				15,240
		Zynex Inc		Common Stock			—				612
		Common Stock								$	394,301,012
**		U.S. Government and Government Agency Issues:
		Fed HM LN Pool A58677		5.5% 01 Mar 2037			—				528,672
		Fed HM LN Pool C48827		6.0% 01 Mar 2031			—				10,306
		Fed HM LN Pool C91370		4.5% 01 May 2031			—				516,352
		Fed HM LN Pool G12334		5.0% 01 Sep 2021			—				199,092
		Federal Home LN Mtg		5.0% 15 Jan 2030			—				62,951
		FNMA Pool 256398		6.0% 01 Sep 2021			—				42,616
		FNMA Pool 323887		6.0% 01 Dec 2013			—				16,965
		FNMA Pool 581043		6.0% 01 May 2016			—				17,678
		FNMA Pool 615005		6.0% 01 Dec 2016			—				26,994
		FNMA Pool 694448		5.5% 01 Apr 2033			—				319,466
		FNMA Pool 725690		6.0% 01Aug2034			—				245,180
		FNMA Pool 745418		5.5% 01 Apr 2036			—				143,435
		FNMA Pool 748115		6.0% 01 Oct 2033			—				88,397
		FNMA Pool 815316		5.5% 01 May 2035			—				411,623
		FNMA Pool 822979		5.5% 01 Apr 2035			—				392,523
		FNMA Pool 885504		6.0% 01 Jun 2021			—				140,293
		FNMA Pool 888102		5.5% 01 May 2036			—				22,743
		FNMA Pool 902793		6.5% 01 Nov 2036			—				197,427
		FNMA Pool AH2899		4.5% 01Jan2041			—				541,971
		FNMA Pool AH3765		4.0% 01 Jan2041			—				1,279,854
		FNMA Pool AH9374		4.5% 01 Apr 2041			—				645,602
		FNMA Pool AL0920		5.0% 01 Jul 2037			—				808,068
		FNMA Pool MA0734		4.5% 01 May 2031			—				509,972
		FNMA Pool MA0918		4.0% 01 Dec 2041			—				1,338,228
		Mexico St		8.0% 17 Dec 2015			—				108,231
		TSY Infl IX N/B		0.625% 15 Jul 2021			—				1,885,046
		US Treasury N/B		4.5% 15 Aug 2039			—				333,272
		US Treasury N/B		3.125% 15 Nov 2041			—				481,375
		US Treasury N/B		3.125% 15 May 2021			—				485,453
		US Treasury N/B		4.375% 15 May 2040			—				571,217
		US Treasury N/B		1.125% 15 Jan 2012			—				701,815
		US Treasury N/B		3.375% 15 Nov 2019			—				782,837
		US Treasury N/B		4.375% 05 May 2041			—				907,684
		US Treasury N/B		1.0% 31 Dec 2011			—				1,259,858
		US Treasury N/B		0.875% 29 Feb 2012			—				1,271,426
		US Treasury N/B		0.375% 30 Sep 2012			—				1,470,173
		US Treasury N/B		1.375% 15 Sep 2012			—				3,100,075
		U.S. Government and Government Agency Issues								$	21,864,870

 

39

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
**		Corporate and Other Obligations:
		USG Corp		9.75% 15 Jan 2018			—				133,594
		AES Corp		7.75% 15 Oct 2015			—				161,188
		Agilent Technologies Inc		6.5% 01 Nov 2017			—				268,909
		Albertson's Inc		6.625% 01 Jun 2028			—				17,601
		Alcoa Inc		5.95% 01 Feb 2037			—				140,572
		Alcoa Inc		5.87% 23Feb2022			—				323,479
		Ally Financial Inc		6.25% 01 Dec 2017			—				328,835
		Ally Financial Inc		6.75% 01 Dec 2014			—				347,573
		Alta Wind Holdings		7.0% 30 Jun 2035			—				200,069
		Altria Group Inc		4.75% 05 May 2021			—				54,398
		Altria Group Inc		9.25% 06 Aug 2019			—				72,975
		Altria Group Inc		9.95% 10 Nov2038			—				413,303
		American Express Credit		2.8% 19 Sep2016			—				362,433
		American Movil SAB		2.375% 08 Sep 2016			—				295,611
		American Tower Corp		4.625% 01 Apr 2015			—				148,310
		American Tower Corp		4.5% 15 Jan 2018			—				211,088
		Amgen Inc		2.5% 15 Nov 2016			—				484,988
		Anheuser Busch Cos		4.95% 15 Jan 2014			—				21,298
		Anheuser Busch Cos		6.5% 01 May 2042			—				66,059
		Anheuser Busch In Bev		4.125% 15 Jan 2015			—				580,620
		Arcelor Mittal		5.5% 01 Mar 2021			—				285,708
		Arcelor Mittal		3.75% 05 Aug 2015			—				363,680
		Aristotle Holding Inc		4.75% 15 Nov 2021			—				327,194
		Associates Corp		6.95% 01 Nov 2018			—				375,805
		AT&T Corp		6.5% 15 Mar 2029			—				23,628
		AT&T Inc		PreferredStock			—				22,738
		AT&T Inc		4.45% 15 May 2021			—				439,595
		Baker Hughes Inc		3.2% 15 Aug 2021			—				352,233
*		Bank of America		5.625% 01 Jul 2020			—				155,170
*		Bank of America Coml Mtg		1.0% 10 Apr 2049			—				158,411
		Barrick NA		4.4% 30 May 2021			—				347,794
*		Baxter International Inc		1.85% 15 Jan 2017			—				67,715
		Bear Stearns Coml Mtg		1.0% 11 Jun 2040			—				189,317
		Bemis Company Inc		5.65% 01 Aug 2014			—				57,743
		BG Energy Capital		4.0% 15 Oct 2021			—				305,558
		Biomed Realty LP		6.125% 15 Apr 2020			—				93,345
		Biomed Rlty Tr Inc		PreferredStock			—				7,629
		Bottling Group LLC		5.125% 15 Jan 2019			—				92,224
		BP Capital Markets Plc		4.5% 01 Oct 2020			—				451,641
		Brocade Communications		6.875% 15 Jan 2020			—				47,356
		Brocade Communications		6.625% 15 Jan 2018			—				143,871
		Bunge Limited Finance		4.1% 15 Mar 2016			—				76,742
		Camden PPTY		5.375% 15 Dec 2013			—				25,818
		Camden PPTY		5.0% 15 Jun 2015			—				26,237
		Cameron Intl Corp		6.375% 15 Jul 2018			—				12,872
		Cameron Intl Corp		7.0% 15 Jul 2038			—				48,043
		Canadian Pacific RR Co		7.25% 15 May 2019			—				98,481

 

40

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Capital One Financial Co		2.125% 15 Jul 2014			—				360,919
		Case New Holland Inc		7.75% 01 Sep 2013			—				62,993
		CBS Corp		5.75% 15 Apr 2020			—				138,866
		CC Holdings GS		7.75% 01 May 2017			—				181,000
		CF Industries Holdings		6.875% 01 May 2018			—				84,855
		Chevron Phillips Chemical		7.0% 15 Jun 2014			—				185,256
		Cincinnati Bell Inc		8.75% 15 Mar 2018			—				151,424
		Citigroup Commercial Mortgage		5.431% 15 Oct 2049			—				54,877
		Citigroup/Deutsche Bank		5.322% 11 Dec 2049			—				576,431
		Colorado Intst Gas Co		6.8% 15 Nov 2015			—				17,014
		Colorado Intst Gas Co		5.95% 15 Mar 2015			—				22,380
		Comcast Corp		5.65% 15 Jun 2035			—				99,336
		Comcast Corp		6.45% 15 Mar 2037			—				113,795
		Comcast Corp		6.4% 01 Mar 2029			—				194,071
		Comcast Corp		6.4% 15 May 2038			—				225,561
		Commerical Mortgage Passthru		1.0% 15 Dec 2049			—				55,148
		Contl Airlines		5.983% 19 Oct 2023			—				286,884
		Corning Inc		6.85% 01 Mar 2029			—				18,219
		Corning Inc		7.25% 15 Aug 2036			—				71,522
		Covidien Intl Finance SA		6.0% 15 Oct 2017			—				271,655
		Credit Suisse Coml Mtg		1.0% 15 Jan 2049			—				125,521
		Crown Castle Towers LLC		3.214% 15 Aug 2035			—				99,917
		CSC Hldgs Inc		7.875% 15 Feb 2018			—				169,624
		Delta Air Lines		6.821% 10 Feb 2024			—				218,405
		Direc TV Holdings		5.0% 01 Mar 2021			—				444,154
		Dow Chemical Co		4.25% 15 Nov 2020			—				215,690
		Duke Energy Co		6.25% 15 Jan 2012			—				29,691
		Eastman Chemical Co		4.5% 15 Jan 2021			—				218,958
		Echostar DBS Corp		7.0% 01 Oct 2013			—				284,802
		Ecolab Inc		4.35% 08 Dec 2021			—				110,797
		Embarq Corp		7.995% 01 Jun 2036			—				645,046
		Enel Fin Intl		6.25% 15 Sep 2017			—				314,042
		Enron Cap Res LP		PreferredStock			—				—
		Ensco Plc		4.7% 15 Mar 2021			—				452,777
		EQT Corp		8.125% 01 Jun 2019			—				97,359
		Equifax Inc		7.0% 01 Jul 2037			—				172,941
		ERAC USA Fin Co		7.0% 15 Oct 2017			—				11,888
		ERAC USA Fin Co		6.375% 15 Oct 2017			—				610,879
		ERP OPER Ltd Partnership		5.75% 15 Jun 2017			—				38,345
		Expedia Inc		5.95% 15 Aug 2020			—				44,841
		Express Scripts Inc		7.25% 15 Jun 2019			—				35,326
		Express Scripts Inc		3.125% 15 May 2016			—				268,272
		Fidelity National Inform		7.875% 15 Jul 2020			—				48,023
		Florida Gas Transmission Co		7.9% 15 May 2019			—				55,516
		Ford Motor Company		7.0% 15 Apr 2015			—				141,445
		Ford Motor Company		7.45% 16 Jul 2031			—				284,580
		Ford Motor Company		5.75% 01 Feb 2021			—				308,926
		Frontier Communications		7.875% 15 Jan 2027			—				243,573
		General Elec Cap Corp		2.95% 09 May 2016			—				193,091

 

41

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		General Elec Cap Corp		3.75% 14 Nov 2014			—				442,659
		General Elec Cap Corp		PreferredStock			—				12,825
		Georgia Pac Corp		7.375% 01 Dec 2025			—				158,427
		Georgia Pac Corp		7.25% 01 Jun 2028			—				220,546
		Georgia Pac Corp		7.75% 15 Nov 2029			—				230,068
		Georgia Pac Corp		8.875% 15 May 2031			—				6,791
		Georgia Pwr Co		PreferredStock			—				13,315
		Gilead Sciences Inc		5.65% 01 Dec 2041			—				114,872
		Greenwich Capital Commercial		1.0% 10 Jul 2038			—				54,885
		Greenwich Capital Commercial		5.736% 15 Dec 2049			—				245,172
		GS Mortgage Securities		1.0% 10 Aug 2045			—				493,621
		Hasbro Inc		6.125% 15 May 2014			—				64,678
		Hasbro Inc		6.3% 15 Sep 2017			—				107,921
		Hewlett Packard Co		4.375% 15 Sep 2021			—				188,661
		Hewlett Packard Co		4.65% 09 Dec 2021			—				271,063
		Home Depot Inc		5.4% 01 Mar 2016			—				28,531
		Hospira Inc		6.05% 30 Mar 2017			—				119,998
		Incitec Pivot Fin LLC		6.0% 15 Dec 2019			—				107,965
		Ingersoll Rand Global Hldg		6.875% 15 Aug 2018			—				125,674
		Intel Corp		1.95% 01 Oct 2016			—				370,770
		International Paper Co		4.75% 15 Feb 2022			—				267,834
		International Paper Co		7.95% 15 Jun 2018			—				270,624
		Ipalco Enterprises Inc		5.0% 01 May 2018			—				33,893
		Jabil Circuit Inc		5.625% 15 Dec 2020			—				115,623
		John Deere Capital Corp		1.85% 15 Sep 2016			—				259,129
		JPMorgan Chase Coml Mtg		1.0% 12 Feb 2049			—				69,490
		JPMorgan Chase Coml Mtg		5.44% 12 Jun 2047			—				132,384
		JPMorgan Chase Coml Mtg		1.0% 15 Jun 2049			—				210,021
		JPMorgan Chase & Co		4.625% 10 May 2021			—				71,565
		JPMorgan Chase & Co		3.7% 20 Jan 2015			—				568,593
		KLA Tencor Corp		6.9% 01 May 2018			—				216,497
		Kraft Foods Inc		6.5% 01 Nov 2031			—				79,849
		Kraft Foods Inc		6.5% 11 Aug 2017			—				152,807
		Kraft Foods Inc		2.625% 08 May 2013			—				388,655
		Lear Corp		8.125% 15 Mar 2020			—				43,477
		Lear Corp		7.875% 15 Mar 2018			—				133,706
		Life Technologies Corp		4.4% 01 Mar 2015			—				118,084
		McDonalds Corp Medium Note		5.0% 01 Feb 2019			—				70,351
		McKesson Corp		6.5% 15 Feb 2014			—				109,354
		Merrill Lynch & Co Inc		5.0% 15 Jan 2015			—				61,873
		Merrill Lynch & Co Inc		6.4% 28 Aug 2017			—				339,666
		Midwest Banc Hldgs Inc		PreferredStock			—				—
		ML CFC Coml Mtg		1.0% 12 Mar 2051			—				25,983
		ML CFC Coml Mtg		1.0% 12 Dec 2049			—				186,161
		Modern Energy Corp		PreferredStock			—				—
		Morgan Stanley		5.375% 15 Oct 2015			—				62,759
		Morgan Stanley		5.55% 27 Apr 2017			—				238,339
		Morgan Stanley		5.5% 24 Jul 2020			—				260,545
		Nabors Industries		6.15% 15 Feb 2018			—				16,557

 

42

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Nabors Industries		9.25% 15 Feb 2019			—				573,003
		New Field Exploration Co		5.75% 30 Jan 2022			—				240,114
		Newmont Mining Corp		5.875% 01 Apr 2035			—				128,656
		News America Inc		6.15% 01 Mar 2037			—				307,837
		Nextera Energy Capital		4.5% 01 Jun 2021			—				321,045
		NGN 2010 R3		1.0% 08 Dec 2020			—				986,977
		NiSource Finance Corp		5.45% 15 Sep 2020			—				125,868
		NiSource Finance Corp		6.125% 01 Mar 2022			—				159,263
		Norfolk Southern Corp		5.75% 15 Jan 2016			—				314,567
		Occidental Petroleum		1.75% 15 Feb 2017			—				385,316
		Omnicare Inc		7.75% 01 Jun 2020			—				164,455
		Oneok Partners LP		8.625% 01 Mar 2019			—				279,057
		Orcale Corp		5.0% 08 Jul 2019			—				448,525
		Owens Corning New		7.0% 01 Dec 2036			—				100,993
		Pepisco Inc		0.8% 25 Aug 2014			—				325,808
		Petrobras Intl Fin		5.875% 01 Mar 2018			—				513,652
		PNC Funding Corp		3.625% 08 Feb 2015			—				503,403
		Pride International Inc		8.5% 15 Jun 2019			—				97,890
		Procter & Gamble Co		1.45% 15 Aug 2016			—				299,913
		QEP Resources Inc		6.875% 01 Mar 2021			—				175,676
		Quest Diagnostics Inc		4.75% 30 Jan 2020			—				120,241
		Regions Fing Tr		PreferredStock			—				5,060
		Reynolds Amern Inc		7.25% 15 Jun 2037			—				343,858
		Reynolds Group		6.875% 15 Feb 2021			—				98,318
		Rowan Companies Inc		5.0% 01 Sep 2017			—				124,594
		Royal Bk Scotland Group Plc		PreferredStock			—				5,312
		RPM International Inc		6.125% 15 Oct 2019			—				244,876
		RR Donnelley & Sons		7.25% 15 May 2018			—				378,600
		Schlumberger Investment		1.95% 14 Sep 2016			—				94,976
		Schlumberger Norge		1.95% 14 Sep 2016			—				179,955
		Snap On Inc		4.25% 15 Jan 2018			—				122,241
		Southern Nat Gas		7.35% 15 Feb 2031			—				220,740
		Sprint Capital Corp		6.875% 15 Nov2028			—				201,003
		Talisman Energy Inc		7.75% 01 Jun 2019			—				36,553
		Talisman Energy Inc		5.85% 01 Feb 2037			—				72,337
		Talisman Energy Inc		6.25% 01 Feb 2038			—				178,384
		Textron Inc		4.625% 21Sep2016			—				306,860
		Time Warner Cable Inc		5.85% 01 May 2017			—				101,277
		Time Warner Cable Inc		6.55% 01 May 2037			—				168,586
		Time Warner Cable Inc		6.625% 15 May 2029			—				425,158
		Treehouse Foods Inc		7.75% 01 Mar 2018			—				187,188
		Tyco International		4.125% 15 Oct 2014			—				152,704
		United Health Group Inc		6.0% 15 Feb 2018			—				317,207
		United Parcel Service		3.875% 01 Apr 2014			—				237,219
		Unum Group		5.625% 15 Sep 2020			—				142,442
		US Steel Corp		6.65% 01 Jun 2037			—				227,367
		US Steel Corp		7.375% 01 Apr 2020			—				130,062
		Vale Overseas Limited		6.875% 21 Nov 2036			—				191,255
		Valero Energy Corp		6.625% 15 Jun 2037			—				275,471

 

43

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Votorantim Cimentos SA		7.25% 05 Apr 2041			—				191,202
		WAMU Mortgage Pass Thru		1.0% 25 Mar 2035			—				76,402
		Waste Management Inc		6.375% 11 Mar 2015			—				124,011
		WellPoint Inc		6.0% 15 Feb 2014			—				290,795
		Wells Fargo & Company		4.6% 01 Apr 2021			—				455,136
		Wells Fargo Mtg Bkd		1.0% 25 Oct 2035			—				356,099
		Western Union Co		5.93% 01 Oct 2016			—				178,141
		Willis North America Inc		7.0% 29 Sep 2019			—				39,598
		Windstream Corp		8.125% 01 Sep 2018			—				68,804
		Wyndham Worldwide		7.375% 01 Mar 2020			—				372,181
		Xerox Corp		6.4% 15 Mar 2016			—				179,115
		Corporate and Other Obligations								$	40,241,693
Synthetic Guaranteed Investment Contracts:
		Cash & Cash Equivalents
		Australian Dollar		Cash							16,758
		Lehman Bankruptcy		Cash Collateral							(31,355	)
*		State Street Bank & Trust Co		Short-Term Investment Fund							566,898
*		State Street Bank & Trust Co		Short-Term Investment Fund							3,529,239
*		State Street Bank & Trust Co		Short-Term Investment Fund							17,741,758
*		State Street Bank & Trust Co		Short-Term Investment Fund							1,524,081
											23,347,379
		U.S. Government and Government Agency Issues
		Australian Government		4.75% 15 Jun 2016			—				743,209
		Australian Government		5.25% 15 Mar 2019			—				1,556,549
		Australian Government		6.0% 15 Feb 2017			—				2,591,412
		California St		5.75% 01 Mar 2017			—				448,099
		California St		5.0% 01 Nov 2037			—				497,907
		Fannie Mae		1.0% 18Oct2012			—				586,241
		Fannie Mae		1.0% 17 Sep 2012			—				1,817,172
		Fannie Mae		2.625% 20 Nov 2014			—				6,428,703
		Fed HM LN PC Pool 1J1214		4.0% 01 Mar 2025			—				25,410
		Fed HM LN PC Pool A34902		5.5% 01 May 2035			—				562,869
		Fed HM LN PC Pool B12817		4.0% 01 Mar 2014			—				4,334
		Fed HM LN PC Pool B14039		4.0% 01 May 2014			—				13,047
		Fed HM LN PC Pool B17493		4.0% 01 Dec 2014			—				790,320
		Fed HM LN PC Pool E01343		5.0% 01 Apr 2018			—				1,525,690
		Fed HM LN PC Pool E01377		4.5% 01 May 2018			—				299,560
		Fed HM LN PC Pool E02697		4.0% 01 Jun 2025			—				53,846
		Fed HM LN PC Pool E02783		4.0% 01 Sep 2025			—				54,171
		Fed HM LN PC Pool E02883		4.0% 01 Apr 2026			—				692,839
		Fed HM LN PC Pool E99842		4.0% 01 Oct 2013			—				15,551
		Fed HM LN PC Pool G01843		6.0% 01 Jun 2035			—				1,108,968

 

44

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Fed HM LN PC Pool G01890		4.0% 01 Nov 2013			—				510,206
		Fed HM LN PC Pool G08084		4.0% 01 Apr 2026			—				981,723
		Fed HM LN PC Pool G11542		4.0% 01 Apr 2014			—				770,307
		Fed HM LN PC Pool G12743		5.5% 01Aug2022			—				297,673
		Fed HM LN PC Pool G14093		4.5% 01 Oct 2035			—				753,543
		Fed HM LN PC Pool G18268		5.0% 01Aug 2023			—				1,054,780
		Fed HM LN PC Pool G18385		1.0% 01 Sep 2035			—				65,202
		Fed HM LN PC Pool J11872		4.0% 01 Mar 2026			—				53,840
		Fed HM LN PC Pool J14641		4.0% 01 Mar 2025			—				760,259
		Fed HM LN PC Pool J15157		4.0% 01 Apr 2026			—				30,422
		Fed HM LN PC Pool Q00628		4.5% 01 May 2041			—				525,519
		Fed HM LN PC Pool Q01947		4.5% 01 Jul 2042			—				2,069,330
		Fed HM LN PC Pool Q03572		4.0% 01 Sep 2041			—				4,621,197
		Fed HM LN PC Pool Q03681		4.0% 01 Oct 2041			—				4,022,034
		Fed HM LN PC Pool Q03780		4.0% 01 Oct 2017			—				55,076
		Fed HM LN Pool 1N1417		1.0% 01 Feb 2037			—				133,695
		Fed HM LN Pool 1Q0669		1.0% 01 Nov 2037			—				110,853
		Fed HM LN Pool 1Q1159		1.0% 01 May 2038			—				1,054,549
		Fed HM LN Pool A89385		4.5% 01 Oct 2039			—				5,128,386
		Fed HM LN Pool G03205		5.5% 01 Jul 2035			—				216,992
		Fed HM LN Pool G04731		5.5% 01 Apr 2038			—				2,349,688
		Federal Farm Credit Bank		1.0% 29 Sep 2014			—				839,913
		Federal Farm Credit Bank		1.0% 12 Oct 2012			—				1,172,367
		Federal Farm Credit Bank		1.0% 26 Jun 2013			—				2,444,507
		Federal Farm Credit Bank		1.0% 13 Nov 2012			—				2,637,786
		Federal Farm Credit Bank		1.0% 20 Sep 2012			—				2,930,940
		Federal Farm Credit Bank		1.0% 26 Apr 2013			—				5,191,097
		Federal Home Loan Bank		3.625% 18 Oct 2013			—				7,778,308
		Federal Natl Mtg Assn		1.0% 25 May 2030			—				1,133,540
		Federal Natl Mtg Assn		3.0% 01 Dec 2099			—				8,039,296
		FHLMC TBA		4.0% 31 Dec 2099			—				(4,097,125	)
		FHLMC TBA		3.5% 01 Dec 2099			—				—
		FHLMC TBA		4.5% 01 Dec 2099			—				1,034,195
		FICO Strip		0.01% 06 Oct 2015			—				187,914
		FICO Strip		0.01% 07 Mar 2019			—				281,015
		FICO Strip		0.01% 07 Mar 2019			—				299,890
		FICO Strip		0.01% 26 Sep 2019			—				352,193
		FICO Strip		0.01% 08 Aug 2015			—				414,620
		FICO Strip		0.01% 26 Sep 2014			—				694,537
		FICO Strip		0.01% 11 May 2013			—				779,616
		FICO Strip		0.01% 27 Dec 2012			—				1,796,010
		FICO Strip		0.01% 03 Feb 2017			—				2,616,124
		FICO Strip		0.01% 30 Nov 2017			—				2,675,707
		Financing Corp		9.8% 06 Apr 2018			—				350,104
		Financing Corp		0.01% 27 Dec 2018			—				509,232
		FNMA Pool 254088		5.5% 01 Dec 2016			—				45,165
		FNMA Pool 254140		5.5% 01 Jan 2017			—				130,049
		FNMA Pool 254693		5.5% 01 Apr 2033			—				422,140
		FNMA Pool 254722		5.5% 01 May 2018			—				373,639

 

45

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		FNMA Pool 255364		6.0% 01 Sep 2034			—				372,781
		FNMA Pool 255765		5.0% 01 Jul 2020			—				93,945
		FNMA Pool 256101		5.5% 01 Feb 2036			—				1,205,762
		FNMA Pool 256925		6.0% 01 Oct 2037			—				1,178,022
		FNMA Pool 323348		8.5% 01 Jun 2012			—				12
		FNMA Pool 545904		5.5% 01 Sep 2017			—				232,900
		FNMA Pool 555541		1.0% 01 Apr 2033			—				62,655
		FNMA Pool 722999		5.0% 01 Jul 2018			—				800,668
		FNMA Pool 725027		5.0% 01 Nov 2033			—				225,389
		FNMA Pool 725222		5.5% 01 Feb 2034			—				523,544
		FNMA Pool 725423		5.5% 01 May 2034			—				384,310
		FNMA Pool 725424		5.5% 01 Apr 2034			—				188,386
		FNMA Pool 725690		6.0% 01Aug 2034			—				145,561
		FNMA Pool 725946		5.5% 01 Nov 2034			—				498,658
		FNMA Pool 735141		5.5% 01 Jan 2035			—				735,064
		FNMA Pool 735224		5.5% 01 Feb 2035			—				958,334
		FNMA Pool 735592		5.0% 01 May 2034			—				993,761
		FNMA Pool 735667		5.0% 01 Jul 2035			—				3,446,935
		FNMA Pool 743132		5.0% 01 Oct 2018			—				795,943
		FNMA Pool 745275		5.0% 01 Feb 2036			—				1,735,091
		FNMA Pool 745275		5.0% 01 Feb 2036			—				3,311,681
		FNMA Pool 745327		6.0% 01 Mar 2036			—				263,152
		FNMA Pool 756363		1.0% 01 Dec 2033			—				168,313
		FNMA Pool 770946		5.0% 01 Apr 2034			—				660,132
		FNMA Pool 77691		5.0% 01 Apr 2034			—				739,679
		FNMA Pool 831540		6.0% 01 Jun 2036			—				905,473
		FNMA Pool 837220		4.5% 01Aug 2020			—				1,746,035
		FNMA Pool 841068		4.5% 01 Feb 2039			—				402,441
		FNMA Pool 844444		5.0% 01 Dec 2035			—				1,280,643
		FNMA Pool 848647		5.5% 01 Jan 2036			—				744,758
		FNMA Pool 871117		5.5% 01 Dec 2036			—				995,979
		FNMA Pool 871288		6.0% 01 May 2036			—				451,772
		FNMA Pool 880611		5.5% 01 Apr 2036			—				927,158
		FNMA Pool 880626		5.5% 01 Apr 2036			—				1,651,372
		FNMA Pool 881655		1.0% 01 Mar 2036			—				108,654
		FNMA Pool 888340		5.0% 01Aug 2036			—				871,371
		FNMA Pool 888521		1.0% 01 Mar 2034			—				286,106
		FNMA Pool 888789		5.0% 01 Jul 2036			—				262,810
		FNMA Pool 889004		1.0% 01Aug 2037			—				535,873
		FNMA Pool 889040		5.0% 01 Jun 2037			—				569,219
		FNMA Pool 889190		6.0% 01 Mar 2038			—				84,642
		FNMA Pool 889361		6.0% 01 Mar 2038			—				653,215
		FNMA Pool 889369		6.0% 01 Feb 2038			—				843,085
		FNMA Pool 889544		5.5% 01 May 2038			—				658,543
		FNMA Pool 889579		6.0% 01 May 2038			—				902,167
		FNMA Pool 889750		6.0% 01 May 2038			—				271,679
		FNMA Pool 902397		1.0% 01 Nov 2036			—				102,725
		FNMA Pool 930612		4.0% 01 May 2024			—				278,528
		FNMA Pool 931252		3.5% 01 Dec 2040			—				21,795

 

46

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		FNMA Pool 931745		5.0% 01 Aug 2024			—				3,866,770
		FNMA Pool 932847		4.0% 01 Apr 2024			—				1,001,082
		FNMA Pool 986148		5.5% 01 Jan 2038			—				2,525,164
		FNMA Pool 995018		5.5% 01 Jun 2038			—				1,953,891
		FNMA Pool 995051		6.0% 01 Mar 2037			—				1,713,906
		FNMA Pool AA2549		4.0% 01 Apr 2039			—				816,686
		FNMA Pool AA4302		4.5% 01 Apr 2039			—				508,881
		FNMA Pool AA5780		4.5% 01 Jul 2040			—				933,506
		FNMA Pool AA6450		4.5% 01 Sep 2040			—				2,298,758
		FNMA Pool AB1250		3.5% 01 Oct 2025			—				690,250
		FNMA Pool AB1600		4.0% 01 Oct 2025			—				946,563
		FNMA Pool AB1609		3.5% 01 Dec 2040			—				5,749,527
		FNMA Pool AB1949		4.0% 01 Mar 2039			—				487,022
		FNMA Pool AD1593		3.5% 01 Nov 2041			—				36,734
		FNMA Pool AD1910		4.0% 01 Sep 2040			—				1,002,830
		FNMA Pool AD5026		4.0% 01 Sep 2025			—				268,126
		FNMA Pool AD8265		4.5% 01 Sep 2040			—				94,212
		FNMA Pool AD8529		4.5% 01 Aug 2040			—				1,019,444
		FNMA Pool AD9843		3.5% 01 Dec 2025			—				87,713
		FNMA Pool AE0061		6.0% 01 Feb 2040			—				427,805
		FNMA Pool AE0349		6.0% 01 Apr 2040			—				1,477,146
		FNMA Pool AE0368		4.5% 01 Dec 2040			—				905,906
		FNMA Pool AE0480		6.0% 01 Jul 2039			—				189,351
		FNMA Pool AE0824		3.5% 01 Feb 2041			—				203,914
		FNMA Pool AE0828		3.5% 01 Mar 2041			—				971,802
		FNMA Pool AE0898		1.0% 01 Oct 2039			—				876,061
		FNMA Pool AE0981		3.5% 01 Oct 2025			—				960,298
		FNMA Pool AE1016		4.0% 01 Aug 2025			—				943,004
		FNMA Pool AE1332		4.0% 01 Oct 2040			—				249,245
		FNMA Pool AE1807		3.5% 01 Sep 2040			—				1,049,074
		FNMA Pool AE2570		3.5% 01 Jan 2026			—				93,245
		FNMA Pool AE3771		3.5% 01 Sep 2040			—				28,465
		FNMA Pool AE4287		4.0% 01 Sep 2040			—				30,043
		FNMA Pool AE4705		3.5% 01 Oct 2025			—				321,863
		FNMA Pool AE4877		3.5% 01 Nov 2040			—				407,349
		FNMA Pool AE8392		3.5% 01 Nov 2040			—				1,969,018
		FNMA Pool AE8394		4.5% 01 Nov 2040			—				318,011
		FNMA Pool AE8442		3.5% 01 Dec 2025			—				423,163
		FNMA Pool AE9449		10.7% 06 Oct 2017			—				897,494
		FNMA Pool AH1105		3.5% 01 Dec 2025			—				576,565
		FNMA Pool AH1318		3.5% 01 Jan 2026			—				85,779
		FNMA Pool AH1882		3.5% 01 Jan 2027			—				21,722
		FNMA Pool AH2680		3.5% 01 Jan 2041			—				92,432
		FNMA Pool AH2815		3.5% 01 Mar 2026			—				2,347,941
		FNMA Pool AH2857		3.5% 01 Jan 2026			—				288,344
		FNMA Pool AH5463		4.5% 01 Jul 2041			—				78,956
		FNMA Pool AH6737		4.0% 01 Feb 2026			—				999,654
		FNMA Pool AH8702		3.5% 01 May 2026			—				316,576
		FNMA Pool AH9523		4.5% 01 Aug 2041			—				851,023

 

47

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		FNMA Pool AH9706		3.5% 01 Jan 2026			—				941,710
		FNMA Pool AI0344		3.5% 01 Oct 2041			—				107,076
		FNMA Pool AI0477		3.5% 01 Sep 2041			—				188,890
		FNMA Pool AI0828		3.5% 01 Oct 2041			—				876,406
		FNMA Pool AI2897		4.5% 01 May 2041			—				147,155
		FNMA Pool AI3654		4.5% 01 May 2042			—				823,985
		FNMA Pool AL0270		1.0% 01 Aug 2038			—				820,929
		FNMA Pool AL030		4.5% 01 Jun 2026			—				3,089,671
		FNMA Pool AL0920		5.0% 01 Jul 2037			—				2,206,272
		FNMA Pool AL0921		4.5% 01 Jun 2038			—				3,470,734
		FNMA Pool MA0006		4.0% 01 Feb 2026			—				251,013
		FNMA Pool MA0614		4.0% 01 Jan 2041			—				1,342,943
		FNMA Pool MA0649		4.5% 01 Jun 2041			—				240,572
		FNMA Pool MA0694		4.5% 01 Jun 2041			—				270,337
		FNMA Pool MA0755		3.5% 01 Oct 2041			—				386,501
		FNMA Pool MA0914		4.5% 01 Feb 2040			—				793,866
		FNMA Pool MA0932		3.5% 01 Dec 2041			—				2,866,277
		FNMA TBA		3.5% 01 Dec 2099			—				(4,015,378	)
		FNMA TBA		4.0% 01 Dec 2099			—				(3,076,047	)
		FNMA TBA		3.5% 01 Dec 2099			—				(2,041,242	)
		FNMA TBA		4.0% 01 Dec 2099			—				2,050,698
		FNMA TBA		4.5% 01 Dec 2099			—				3,115,853
		FNMA TBA		4.0% 01 Dec 2099			—				1,794,361
		FNMA TBA Single Fam		6.0% 01 Dec 2099			—				—
		FNMA TBA Single Fam		4.5% 01 Dec 2099			—				1,188,191
		FNMA TBA Single Fam		4.0% 01 Dec 2099			—				7,080,034
		Freddie Mac		1.0% 15 Dec 2029			—				34,583
		Freddie Mac		5.5% 18 Jul 2016			—				442,316
		Freddie Mac		4.875% 13 Jun 2018			—				4,304,554
		Freddie Mac		3.75% 27 Mar 2019			—				4,685,352
		GNMA II TBA		4.0% 01 Dec 2099			—				1,837,362
		Illinois St		4.421% 01 Jan 2015			—				263,990
		Illinois St		4.421% 01 Jan 2015			—				507,673
		Illinois St		4.95% 01 Jun 2023			—				1,638,506
		Illinois St		3.321% 01 Jan 2015			—				2,195,471
		Irvine Ranch CA		2.605% 15 Mar 2014			—				1,420,158
		Japan Treasury Disc Bill		0.01% 20 Feb 2012			—				3,298,007
		Kentucky ST Property		5.373% 01 Nov 2025			—				329,915
		New York City Transitional		5.075% 01 Nov 2025			—				110,792
		New York City Transitional		4.725% 01 Nov 2023			—				114,170
		New York City Transitional		4.905% 01 Nov 2024			—				115,690
		North Carolina State Education		1.0% 25 Jul 2025			—				1,351,108
		Overseas Private Inv Corp		0.01% 12 Jul 2016			—				3,408,946
		Province of Ontario		4.1% 16 Jun 2014			—				875,781
		Province of Ontario		4.5% 03 Feb 2015			—				1,286,192
		Province of Quebec		4.6% 26 May 2015			—				1,292,589
		Republic of Poland		6.375% 15 Jul 2019			—				43,241
		Republic of Poland		3.875% 16 Jul 2015			—				427,971
		Resolution Funding Strip		0.01% 15 Jan 2014			—				365,678

 

48

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Resolution Funding Strip		0.01% 15 Apr 2015			—				824,177
		Resolution Funding Strip		0.01% 15 Jan 2017			—				920,441
		RFSCP Strip Principal		0.01% 15 Jul 2020			—				3,494,386
		Russian Foreign Bond		1.0% 31Mar2030			—				207,100
		Small Business Administration		7.06% 01 Nov 2019			—				80,827
		Small Business Administration		7.19% 01 Dec 2019			—				156,965
		Small Business Administration		5.68% 01 Jun 2028			—				865,658
		South Carolina St Public Svc		1.0% 02 Jun 2014			—				1,465,858
		State of Qatar		4.5% 20 Jan 2022			—				281,503
		Tobacco Settlement		5.875% 15 May 2039			—				293,503
		Treasury Bill		0.01% 12 Jan 2012			—				3,660,315
		Treasury INFL IX N/B		1.25% 15 Jul 2020			—				—
		Treasury INFL IX N/B		0.625% 15 Jul 2021			—				734,343
		Treasury INFL IX N/B		1.125% 15 Jan 2021			—				3,605,746
		United States Treasury Bill		0.042% Jun 21 2012			—				1,756,684
		US Treasury N/B		1.375% 30 Nov 2015			—				15,087
		US Treasury N/B		2.5% 30 Apr 2015			—				119,792
		US Treasury N/B		6.125% 15 Nov 2027			—				145,071
		US Treasury N/B		7.875% 15 Feb 2021			—				148,952
		US Treasury N/B		6.25% 15 Aug 2023			—				279,405
		US Treasury N/B		1.875% 30 Sep 2017			—				306,163
		US Treasury N/B		2.125% 15 Aug 2021			—				555,610
		US Treasury N/B		1.375% 31 Dec 2018			—				586,750
		US Treasury N/B		3.75% 15 Aug 2041			—				688,782
		US Treasury N/B		2.75% 15 Feb 2019			—				855,235
		US Treasury N/B		3.125% 15 Nov 2041			—				956,134
		US Treasury N/B		2.25% 31 Jul 2018			—				1,245,792
		US Treasury N/B		2.375% 31Mar2016			—				1,254,302
		US Treasury N/B		2.625% 15 Nov 2020			—				1,260,982
		US Treasury N/B		1.375% 15 Feb 2013			—				1,270,979
		US Treasury N/B		2.375% 31 Jul 2017			—				1,489,672
		US Treasury N/B		1.875% 31 Aug 2017			—				1,634,580
		US Treasury N/B		3.375% 15 Nov 2019			—				1,891,527
		US Treasury N/B		1.0% 30 Sep 2016			—				1,972,305
		US Treasury N/B		2.0% 15 Nov 2021			—				2,068,226
		US Treasury N/B		1.0% 30 Apr 2012			—				2,584,922
		US Treasury N/B		2.625% 15 Aug 202			—				2,737,086
		US Treasury N/B		3.625% 15 Feb 2021			—				3,626,408
		US Treasury N/B		1.875% 30 Jun 2015			—				3,661,465
		US Treasury N/B		1.75% 15 Apr 2013			—				3,857,394
		US Treasury N/B		0.875% 30 Nov 2016			—				4,719,074
		US Treasury N/B		2.0% 15 Nov 2021			—				4,837,379
		US Treasury N/B		2.625% 29 Feb 2016			—				4,948,370
		US Treasury N/B		2.125% 31 Dec 2015			—				5,077,961
		US Treasury N/B		1.125% 15 Aug 2021			—				5,506,045
		US Treasury N/B		1.75% 15 Apr 2013			—				6,883,581
		US Treasury N/B		1.375% 15 Sep 2012			—				7,045,284
		US Treasury N/B		1.5% 30 Jun 2016			—				10,195,057
		US Treasury N/B		3.625% 15 Feb 2020			—				12,797,627

 

49

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		US Treasury N/B		2.625% 15 Aug 2020			—				14,222,320
		US Treasury N/B		2.625% 29 Feb 2016			—				14,771,253
		US Treasury N/B		3.625% 15 May 2013			—				16,735,364
		US Treasury N/B		2.125% 31 May 2015			—				41,506,845
		US Treasury NTS		1.875% 15 Jul 2013			—				5,656,494
		US Treasury NTS		2.625% 15 Nov 2020			—				11,047,566
		WI Treasury Sec		1.0% 31 Aug 2016			—				22,473,536
											463,347,720
Corporate and Other Obligations
		ACE Ina Hldg Inc		5.6% 15 May 2015			—				201,441
		Agilent Technologies Inc		6.5% 01 Nov 2017			—				570,828
		Agilent Technologies		5.0% 15 Jul 2020			—				78,693
		Alcoa Inc		6.15% 15 Aug 2020			—				365,087
		Allied World Assurance		7.5% 01 Aug 2016			—				181,760
		Allstate Corp		5.0% 15 Aug 2014			—				474,003
		Ally Auto Receivables Trust		0.8% 16 Jun 2014			—				643,805
		Altria Group Inc		4.75% 05 May 2021			—				961,864
		Altria Group Inc		9.25% 06 Aug 2019			—				432,513
		Ameren Corporation		8.875% 15 May 2014			—				229,692
		America Movil SAB		3.625% 30 Mar 2015			—				731,311
		American Express		1.0% 17 Apr 2017			—				951,711
		American Express Bank		5.55% 17 Oct 2012			—				403,467
		American Express Bank		5.5% 16 Apr 2013			—				255,064
		American Express Centurion Bank		5.55% 17 Oct 2012			—				578,565
		American Express Co		5.5% 12 Sep 2016			—				381,923
		American Express Co		6.15% 28 Aug 2017			—				608,387
		American Express Cr Corp		7.3% 20 Aug 2013			—				481,985
		American Intl Group		3.65% 15 Jan 2014			—				511,902
		American Intl Group		4.875% 15 Sep 2016			—				369,472
		American Tower Corp		5.05% 01 Sep 2020			—				376,473
		Americredit Auto Receivables		1.39% 08 Sep 2015			—				409,705
		Americredit Auto Receivables		1.55% 08 Jul 2016			—				892,403
		Americredit Automobile		1.39% 08 Sep 2015			—				438,970
		Americredit Automobile Receivables		0.92% 09 Mar 2015			—				341,144
		Americredit Automobile Receivables		1.19% 08 Aug 2015			—				229,621
		Ameriprise Financial Inc		5.3% 15 Mar 2020			—				252,079
		Amgen Inc		2.5% 15 Nov 2016			—				1,368,095
		Amgen Inc		3.875% 15 Nov 2021			—				684,564
		Anadarko Petroleum Corp		5.95% 15 Sep 2016			—				85,196
		Anglogold Holdings Plc		5.375% 15 Apr 2020			—				300,607
		Anheuser Busch Cos		5.05% 15 Oct 2016			—				1,556,403
		Aon Corp		3.5% 30 Sep 2015			—				485,786
		ArcelorMittal		5.5% 01 Mar 2021			—				528,616
		ArcelorMittal		6.125% 01 Jun 2018			—				174,474
		ArcelorMittal		6.5% 15 Apr 2014			—				206,390
		Asciano Finance		3.125% 23 Sep 2015			—				457,800

 

50

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		AT&T Inc		5.8% 15 Feb 2019			—				1,693,162
		AT&T Inc		5.8% 15 Feb 2019			—				472,242
		AT&T Inc		5.625% 15 Jun 2016			—				459,092
		Autozone Inc		5.75% 15 Jan 2015			—				551,065
		Banc of America Commerical Mtg		5.414% 10 Sep 2047			—				1,777,219
		Banc of America Funding Corp		1.0% 25 May 2035			—				203,385
*		Bank Amer NA		6.1% 15 Jun 2017			—				293,890
*		Bank of America Corp		5.75% 01 Dec 2017			—				1,014,128
*		Bank of America Corp		1.0% 30 Jan 2014			—				1,674,342
*		Bank of America Corp		5.65% 01 May 2018			—				869,522
*		Bank of America Corp		3.75% 12 Jul 2016			—				275,652
*		Bank of America Corp		5.65% 01 May 2018			—				125,546
*		Bank of America Corp		7.625% 01 Jun 2019			—				171,613
*		Bank of America Corp		5.625% 01 Jul 2020			—				761,890
*		Bank of America Corp		7.375% 15 May 2014			—				485,791
*		Bank of America Corp		3.75% 12 Jul 2016			—				402,181
*		Bank of America Corp		5.42% 15 Mar 2017			—				264,191
*		Bank of America Corp		5.49% 15 Mar 2019			—				757,170
		Barclays Bank Plc		2.375% 13 Jan 2014			—				1,624,128
*		Baxter International Inc		1.85% 15 Jan 2017			—				216,408
		Bay View Fincl Secs Co		5.208% 28 Apr 2039			—				279,462
		Beam Inc		5.375% 15 Jan 2016			—				34,295
		Bear Stearns Coml Mth Secs		5.533% 21 Oct 2041			—				204,756
		Bear Stearns Coml Mth Secs		1.0% 13 Aug 2038			—				108,343
		Bear Stearns Coml Mth Secs		1.0% 11 Sep 2038			—				209,743
		Bear Stearns Commercial Mtg		1.0% 11 Sep 2038			—				277,641
		Bear Stearns Commercial Mtg		5.54% 11 Sep 2041			—				744,379
		Bear Stearns Commercial Mtg		1.0% 11 Jun 2040			—				1,084,660
		Bear Stearns Cos		5.3% 30 Oct 2015			—				839,739
		Bear Stearns Cos		6.4% 02 Oct 2017			—				1,090,513
		Bear Stearns Cos		7.25% 01 Feb 2018			—				863,959
		Bear Stearns Cos		5.55% 22 Jan 2017			—				345,692
		Bears Sterns Adjustable Rate		1.0% 25 Aug 2033			—				118,073
		Berkshire Hathaway Fin Corp		5.4% 15 May 2018			—				660,232
		BHP Billiton Finance		7.25% 01 Mar 2016			—				282,972
		BMW Vehicle Lease Trust		0.64% 22 Apr 2013			—				746,422
		Boeing Capital Corp		2.125% 15 Aug 2016			—				962,220
		Boeing Co		5.125% 15 Feb 2013			—				465,623
		Boston PPTYS Ltd		6.25% 15 Jan 2013			—				74,054
		Boston PPTYS Ltd		5.0% 01 Jun 2015			—				179,703
		Boston PPTYS Ltd		5.625% 15 Apr 2015			—				139,984
		BP Capital Markets		3.125% 01 Oct 2015			—				899,691
		BP Capital Markets		3.125% 01 Oct 2015			—				1,022,376
		BP Capital Markets		4.5% 01 Oct 2020			—				752,524
		BPCE SA		1.0% 07 Feb 2014			—				1,021,773
		Bunge Limited		5.875% 15 May 2013			—				116,831
		Bunge Limited		8.5% 15 Jun 2019			—				298,221
		Burlington North Santa Fe		7.0% 01 Feb 2014			—				322,624
		Cameron Intl Corp		1.0% 02 Jun 2014			—				945,668

 

51

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Canadian Natl Railway		1.45% 15 Dec 2016			—				922,584
		Canadian Pacific RR		6.5% 15 May 2018			—				67,567
		Capital One Bank		8.8% 15 Jul 2019			—				569,483
		Capital One Financial		5.25% 21 Feb 2017			—				390,661
		Capital One Financial		7.375% 23 May2014			—				627,376
		Capital One Financial		2.125% 15 Jul 2014			—				934,666
		Capital One Multi Asset		1.0% 15 Mar 2017			—				559,669
		Carmax Auto Owner Trust		2.82% 15 Dec 2014			—				215,627
		Carmax Auto owner Trust		1.410% 16 Feb 2016			—				923,755
		Carmax AutoTrust		1.29% 15 Sep 2015			—				848,659
		Carolina Power & Light		6.5% 15 Jul 2012			—				643,368
		CBS Corp		8.875% 15 May 2019			—				213,125
		Cellco Part/Veri Wireless		5.55% 01 Feb 2014			—				392,378
		Centerpoint Energy		4.5% 15 Jan 2020			—				103,379
		Chase Issuance Trust		1.0% 16 Jun 2014			—				1,260,167
		Cincinnati Finl Corp		6.125% 01 Nov 2034			—				121,419
		Cincinnati Finl Corp		6.920% 15 May 2028			—				700,857
		Citibank Omni Master Trust		1.0% 15 Aug 2018			—				849,855
		Citifinancial Mortgage Security		1.0% 25 Jan 2033			—				68,048
		Citigroup Inc		6.125% 21 Nov 2017			—				2,708,447
		Citigroup Inc		5.5% 11 Apr 2013			—				199,302
		Citigroup Inc		6.01% 15 Jan 2015			—				871,863
		Citigroup Inc		5.3% 07 Jan 2016			—				283,390
		Citigroup Inc		6.5% 19 Aug 2020			—				284,500
		Citigroup Inc		5.375% 09 Aug 2020			—				197,725
		Citigroup Inc		5.85% 02 Jul 2013			—				797,723
		Citigroup Inc		5.5% 11 Apr 2013			—				508,220
		Citigroup Inc		5.375% 09 Aug 2020			—				431,583
		Citigroup Inc		4.5% 14 Jan 2022			—				394,388
		Citigroup Mortgage Loan Trust		1.0% 25 May 2037			—				11,815
		Citigroup/Deutsche Bank Comm		5.322% 11 Dec 2049			—				1,449,405
		Citigroup/Deutsche Bank Comm		5.431% 15 Oct 2049			—				249,360
		Cleveland Elec Illum Co		5.7% 01 Apr 2017			—				429,494
		Clorox Company		5.95% 15 Oct 2017			—				536,029
		CNH 2010 A		2.49% 15 Jan 2016			—				1,267,974
		CNH 2010 B		1.74% 17 Jan 2017			—				1,030,684
		Coca Cola Co		3.3% 01 Sep 2021			—				1,438,988
		Comcast Corp		4.95% 15 Jun 2016			—				697,240
		Comcast Corp		5.85% 15 Nov 2015			—				1,043,890
		Comcast Corp		5.15% 01 Mar 2020			—				555,019
		Comcast Corp		4.95% 15 Jun 2016			—				178,364
		Comcast Corp		6.5% 15 Jan 2017			—				200,909
		Comcast Corp		6.3% 15 Nov 2017			—				542,621
		Comcast Corp		5.15% 01 Mar 2020			—				455,115
		Consolidated Edison Co		5.3% 01 Dec 2016			—				911,176
		Constellation Energy		5.15% 01 Dec 2020			—				412,513
		Consumers Energy Co		5.375% 15 Apr 2013			—				318,384
		Countrywide Alternative Loan		1.0% 25 Dec 2035			—				61,390
		Countrywide Asset Backed		1.0% 25 Feb 2035			—				242,406

 

52

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Countrywide Finl Corp		6.25% 15 May 2016			—				67,131
		Coventry Health Care Inc		6.125% 15 Jan 2015			—				32,058
		Coventry Health Care Inc		5.95% 15 Mar 2017			—				93,140
		Coventry Health Care Inc		6.3% 15 Aug 2014			—				276,132
		Cox Communications		5.45% 15 Dec 2014			—				1,056,396
		Credit Based Asset Servicing		1.0% 25 Jan 2033			—				171,208
		Credit Suisse Mortgage		1.0% 15 Jun 2038			—				629,717
		Credit Suisse Mortgage		5.46715 Sep 2039			—				788,942
		Credit Suisse Mortgage		5.467% 15 Sep 2039			—				1,411,790
		CS First Boston Mortgage		1.0% 15 Jan 2037			—				327,194
		CS First Boston Mortgage		1.0% 15 Feb 2038			—				315,264
		CVS Caremark		6.6% 15 Mar 2019			—				600,829
		CVS Pass Thru Trust		6.036% 15 Dec 2028			—				451,717
		Delta Airlines		7.75% 17 Dec 2019			—				699,571
		Deutsche Bank AG		5.375% 12 Oct 2012			—				388,345
		Diaego Cap Plc		4.828% 15 Jul 2020			—				1,197,588
		Diaego Cap Plc		7.375% 15 Jan 2014			—				341,513
		Directv Holdings		4.75% 01 Oct 2014			—				152,879
		Directv Holdings		4.6% 15 Feb 2021			—				253,721
		Discover Card Master Trust		1.0% 15 Dec 2014			—				157,097
		Discover Card Master Trust		1.0% 17Feb2015			—				172,116
		Discover Card Master Trust		1.0% 15 Sep 2015			—				151,311
		Discover Financial Svc		10.25% 15 Jul 2019			—				474,734
		Discover Card		1.0% 16 Oct 2014			—				580,680
		Dominion Resources Inc		5.7% 17 Sep 2012			—				443,878
		Dominion Resources Inc		1.95% 15 Aug 2016			—				922,041
		Dow Chemical Co		8.55% 15 May 2019			—				305,213
		Dow Chemical Co		2.5% 15 Feb 2016			—				446,052
		Dow Chemical Co		4.125% 15 Nov 2021			—				916,091
		Duke Cap LLC		5.668% 15 Aug 2014			—				721,116
		Duke Energy		5.65% 15 Jun 2013			—				847,320
		Duke Energy		5.1% 15 Apr 2018			—				568,354
		Duke Realty LP		8.25% 15 Aug 2019			—				321,139
		Duke Realty LP		6.75% 15 Mar 2020			—				32,128
		Ecolab Inc		4.35% 08 Dec 2021			—				187,623
		Ecolab Inc		4.35% 08 Dec 2021			—				177,200
		Embarq Corp		7.995% 01 Jun 2036			—				642,245
		Energy Transfer Partners		6.0% 01 Jul 2013			—				693,597
		Energy Transfer Partners		6.7% 01 Jul 2018			—				532,784
		EneterpriseProds		5.6% 15 Oct 2014			—				513,334
		Ensco Plc		3.25% 15 Mar 2106			—				876,260
		EQT Corp		8.125% 01 Jun 2019			—				240,433
		EQT Corp		8.125% 01 Jun 2019			—				606,807
		ERAC USA Finance		2.25% 10 Jan 2014			—				1,652,465
		ERAC USA Finance		2.25% 10 Jan 2014			—				928,296
		ERP Operating LP		5.75% 15 Jun 2017			—				200,212
		ERP Operating LP		5.5% 01 Oct 2012			—				450,393
		ERP Operating LP		5.25% 15 Sep 2014			—				431,082
		ESA 2010 ESHA		2.95% 05 Nov 2027			—				249,163

 

53

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		ExelonGeneration Co		4.0% 01 Oct 2020			—				441,498
		Expedia Inc		5.95% 15 Aug 2020			—				113,196
		ExpressScripts Inc		6.25% 15 Jun 2014			—				101,068
		ExpressScripts Inc		3.125% 15 May 2016			—				902,978
		Federal Realty Invs Trust		5.4% 01 Dec 2013			—				663,607
		Federal Rlty Invt Tr		5.65% 01 Jun 2016			—				295,159
		Federal Rlty Invt Tr		6.0% 15 Jul 2012			—				124,129
		FHLMC Multifamily Structured		3.154% 25 Feb 2018			—				1,428,791
		FHLMC Multifamily Structured		3.23% 25 Jul 2021			—				3,808,357
		FHLMC Multifamily Structured		2.412% 25 Aug 2018			—				1,189,058
		FHLMC Multifamily Structured		2.746% 25 Dec 2019			—				976,625
		Ford Credit Auto		4.2% 15 Feb 2017			—				1,363,796
		Ford Credit Auto Lease Trust		0.74% 15 Sep 2013			—				697,236
		Ford Credit Auto Lease Trust		0.68% 15 Jan 2014			—				654,051
		Ford Credit Auto Lease Trust		0.82% 15 Jan 2014			—				291,523
		Gazprom		6.212% 22 Nov 2016			—				309,136
		GE Equipment Mid Ticket LLC		1.0% 24 Aug 2015			—				198,224
		General Elec Cap Corp		1.0% 07 Jan 2014			—				961,717
		General Elec Cap Corp		5.5% 08 Jan 2020			—				1,133,050
		General Elec Cap Corp		5.5% 08 Jan 2020			—				2,454,046
		General Elec Cap Corp		4.375% 16 Sep 2020			—				443,865
		General Elec Cap Corp		1.0% 07 Apr 2014			—				653,479
		General Elec Cap Corp		4.65% 17 Oct 2021			—				911,745
		General Elec Cap Corp		4.8% 01 May 2013			—				1,261,982
		General Mills Inc		5.25% 15 Aug 2013			—				177,331
		Genworth Financial Inc		6.515% 22 May 2018			—				252,616
		Gilead Sciences Inc		4.4% 01 Dec 2021			—				403,016
		Goldman Sachs Group		6.75% 01 Oct 2037			—				181,652
		Goldman Sachs Group		6.25% 01 Sep 2017			—				918,394
		Goldman Sachs Group		7.5% 15 Feb 2019			—				431,200
		Goldman Sachs Group		6.0% 15 Jun 2020			—				309,959
		Goldman Sachs Group		5.25% 27 Jul 2021			—				149,497
		Goldman Sachs Group		5.25% 27 Jul 2021			—				704,637
		Greenwich Capital Commercial		5.444% 10 Mar 2039			—				1,193,848
		GS Mortgage Securities Corp		4.751% 10 Jul 2039			—				781,490
		GS Mortgage Securities Corp		1.0% 06 Mar 2020			—				151,288
		GS Mortgage Securities Corp		1.0% 10 Aug 2038			—				381,485
		Guardian Life Insurance		7.375% 30 Sep 2039			—				242,284
		H.J. Heinz Co		6.0% 15 Mar 2012			—				325,116
		Hanover Ins Group		7.625% 15 Oct 2025			—				149,998
		Hartford Finl Svcs		4.0% 30 Mar 2015			—				78,465
		Hartford Finl Svcs		5.5% 30 Mar 2020			—				236,766
		HCP Inc		5.375% 01 Feb 2021			—				340,764
		Healthcare Realty Trust		5.125% 01 Apr 2014			—				177,213
		Healthcare Realty Trust		5.125% 01 Apr 2014			—				325,391
		Hess Corp		7.0% 15 Feb 2014			—				211,271
		Hess Corp		8.125% 15 Feb 2019			—				432,274
		Hewlett Packard Co		1.0% 24 May 2013			—				1,739,663
		Hewlett Packard Co		1.0% 30 May 2014			—				868,229

 

54

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Hewlett Packard Co		3.3% 09 Dec 2016			—				468,443
		Hewlett Packard Co		4.65% 09 Dec 2021			—				225,537
		HOLCIM US Finance		6.0% 30 Dec 2019			—				407,360
		Humana Inc		7.2% 15 Jun 2018			—				495,278
		Huntington Auto Trust		1.01% 15 Jan 2016			—				296,806
		Hyundai Auto Lease Securitization		0.69% 15 Nov 2013			—				328,395
		Hyundai Auto Receivables		1.65% 15 Feb 2017			—				728,430
		Hyundai Capital Services		4.375% 27 Jul 2016			—				497,736
		Intel Corp		1.95% 01 Oct 2016			—				461,580
		International Paper Co		4.75% 15 Feb 2022			—				409,826
		INTL BK Recon & Develop		9.25% 15 Jul 2017			—				171,334
		Intl Paper Co		5.3% 01 Apr 2015			—				316,691
		Intl Paper Co		7.95% 15 Jun 2018			—				249,505
		Inves Co Inc		5.375% 15 Dec 2014			—				163,231
		IRO USD 10Y Swaption		10 Jul 2012			—				—
		John Deere Corp		3.15% 15 Oct 2021			—				935,100
		John Deere Owner Trust		0.64% 16 Jun 2014			—				536,502
		JPMorgan Chase Coml Mtg		4.302% 15 Jan 2038			—				66,300
		JPMorgan Chase Coml Mtg		5.198% 15 Dec 2044			—				417,456
		JPMorgan Chase Coml Mtg		1.0% 12 Dec 2044			—				155,608
		JPMorgan Chase & Co		3.7% 20 Jan 2015			—				1,315,615
		JPMorgan Chase & Co		3.45% 01 Mar 2016			—				495,829
		JPMorgan Chase & Co		6.0% 15 Jan 2018			—				969,210
		JPMorgan Chase & Co		4.75% 01 May 2013			—				362,248
		JPMorgan Chase & Co		4.4% 22 Jul 2020			—				284,087
		JPMorgan Chase & Co		4.35% 15 Aug 2021			—				152,792
		JPMorgan Chase & Co		5.75% 02 Jan 2013			—				526,518
		JPMorgan Chase & Co		5.125% 15 Sep 2014			—				663,763
		JPMorgan Chase & Co		6.0% 15 Jan 2018			—				903,870
		JPMorgan Chase & Co		4.35% 15 Aug 2021			—				197,151
		JPMorgan Chase Bank		6.0% 01 Oct 2017			—				419,993
		JPMorgan Chase Commercial Mortgage		5.42% 15 Jan 2049			—				1,435,072
		JPMorgan Chase Commercial Mortgage		1.0% 12 Dec 2044			—				249,447
		JPMorgan Chase Commercial Mortgage		1.0% 12 Jun 2043			—				733,748
		JPMorgan Chase Commercial Mortgage		5.552% 12 May 2045			—				562,467
		Kazmunaygas National		7.0% 05 May 2020			—				211,603
		Kellogg Co		5.125% 03 Dec 2012			—				674,599
		Kinder Morgan Energy		6.85% 15 Feb 2020			—				711,578
		Kinder Morgan Energy		5.3% 15 Sep 2020			—				446,461
		Kinder Morgan Energy		4.15% 01 Mar 20222			—				189,627
		Korea National Oil Corp		4.0% 27 Oct 2016			—				210,499
		Kraft Foods Inc		6.0% 11 Feb 2013			—				123,401
		Kraft Foods Inc		6.5% 11 Aug 2017			—				290,280
		Kraft Foods Inc		6.125% 01 Feb 2018			—				978,233
		Kroger Co		6.4% 15 Aug 2017			—				133,502
		L3 Communications Corp		3.95% 15 Nov 2016			—				674,853
		LB UBS Commercial Mortgage		5.3% 15 Nov 2038			—				402,428
		LB UBS Commercial Mortgage		4.647% 15 Jul 2030			—				311,644
		LB UBS Commercial Mortgage		1.0% 15 Jun 2029			—				193,511

 

55

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		LB UBS Commercial Mortgage		1.0% 15 Jun 2038			—				771,767
		Liberty PPTY Ltd		5.5% 15 Dec 2016			—				73,877
		Liberty PPTY Ltd		6.625% 01 Oct 2017			—				44,149
		Lincoln National Corp		4.3% 15 Jun 2015			—				141,523
		Lincoln National Corp		8.75% 01 Jul 2019			—				121,102
		Lincoln National Corp		6.25% 15 Feb 2020			—				420,665
		Lloyds TSB Bank		1.0% 24 Jan2014			—				1,569,685
		Lloyds TSB Bank		4.375% 12 Jan2015			—				418,138
		LSI Open Position		0.01% 31 Dec 2060			—				24,435
		Mack Cali Rlty LP		5.125% 15 Jan 2015			—				204,789
		Mack Cali Rlty LP		5.25% 15 Jan 2012			—				195,363
		MacQuarie Group Ltd		4.875% 10 Aug 2017			—				441,865
		Manufacturers & Traders Tr		1.0% 28 Dec 2020			—				242,624
		Marathon Petroleum Corp		5.125% 01 Mar 2021			—				104,008
		Marathon Petroleum Corp		3.5% 01 Mar 2016			—				59,613
		Markel Corp		7.125% 30 Sep 2019			—				216,472
		McKesson Corp		3.25% 01 Mar 2016			—				1,069,171
		McKesson Corp		6.5% 15 Feb 2014			—				259,253
		Merecedes Benz Auto Lease Trust		0.79% 15 Apr 2013			—				625,722
		Merill Lynch Mortgage		1.0% 25 Aug 2036			—				115,861
		Merill Lynch Mortgage		4.9612 Jul 2038			—				913,746
		Merill Lynch/Countrywide Mortgage		1.0% 12 Jun 2046			—				414,002
		Merill Lynch/Countrywide Mortgage		1.0% 12 Jul 2046			—				944,325
		Merill Lynch/Countrywide Mortgage		5.7% 12 Sep 2049			—				768,767
		Merrill Lynch & Co		6.875% 25 Apr 2018			—				1,154,835
		Merrill Lynch & Co		6.4% 28 Aug 2017			—				311,899
		Merrill Lynch & Co		6.875% 25 Apr 2018			—				144,354
		Merrill Lynch & Co		6.05% 16 May 2016			—				372,608
		Merrill Lynch/Countrywide Comm		1.0% 12 Mar 2051			—				1,154,984
		Merrill Lynch/Countrywide Comm		1.0% 12 Feb 2039			—				2,953,082
		MetLife Inc		4.75% 08 Feb 2021			—				934,493
		MetLife Inc		7.171% 15 Feb 2019			—				144,427
		MetLife Inc		5.0% 15 Jun 2015			—				701,806
		MetLife Inc		6.75% 01 Jun 2016			—				342,969
		Mid StateTrust		8.33% 01 Apr 2030			—				298,448
		Morgan Stanley		6.25% 28 Aug 2017			—				95,524
		Morgan Stanley		6.625% 01 Apr 2018			—				1,252,979
		Morgan Stanley		1.0% 15 Oct 2015			—				1,148,794
		Morgan Stanley		3.45% 02 Nov 2015			—				606,605
		Morgan Stanley		1.0% 29 Apr 2013			—				643,893
		Morgan Stanley		5.95% 28 Dec 2017			—				134,843
		Morgan Stanley		6.625% 01 Apr 2018			—				1,002,383
		Morgan Stanley		5.45% 09 Jan 2017			—				291,320
		Morgan Stanley		5.5% 24 Jul 2020			—				443,744
		Morgan Stanley		5.95% 28 Dec 2017			—				646,317
		Morgan Stanley		5.5% 28 Jul 2021			—				324,909
		Morgan Stanley		5.55% 27 Apr 2017			—				193,057
		Morgan Stanley Capital I		1.0% 11 Jun 2042			—				589,308
		Morgan Stanley Capital I		4.89% 12 Jun 2047			—				1,325,135

 

56

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Morgan Stanley Capital I		4.989% 13 Aug 2042			—				1,115,520
		Morgan Stanley Capital I		1.0% 12 Aug 2041			—				286,740
		Morgan Stanley Capital I		5.325% 15 Dec 2043			—				246,353
		Nabors Industries Inc		9.25% 15 Jan 2019			—				367,117
		National Grid Plc		6.3% 01 Aug 2016			—				560,044
		NBC Universal		3.65% 30 Apr 2015			—				417,243
		NBC Universal		4.375% 01 Apr 2021			—				515,055
		NCUA Guaranteed Notes		1.0% 07 Oct 2020			—				1,146,622
		NCUA Guaranteed Notes		1.0% 08 Dec 2020			—				3,322,064
		NCUA Guaranteed Notes		2.9% 29 Oct 2020			—				731,701
		Nevada PWR Co		6.5% 01 Aug 2018			—				294,264
		New York Life Global		3.0% 04 May 2015			—				490,690
		News America Inc		9.25% 01 Feb 2013			—				247,073
		News America Inc		7.7% 30 Oct 2025			—				466,273
		News America Inc		6.65% 15 Nov 2037			—				436,807
		Niagara Mohawk Power		3.553% 01 Oct 2014			—				384,502
		NiSource Finance Corp		5.25% 15 Sep 2017			—				377,113
		NiSource Finance Corp		6.8% 15 Jan 2019			—				422,998
		Nissan Auto Receivables		5.05% 17 Nov 2014			—				153,245
		Noble Energy		8.25% 01 Mar 2019			—				440,446
		Noble Holding Intl		4.9% 01 Aug 2020			—				38,258
		Nordea Bank AB		4.875% 14 Jan 2021			—				1,197,212
		Nordea Bank AB		1.0% 14 Jan 2014			—				756,039
		Norfolk Southern Corp		5.75% 01 Apr 2018			—				224,391
		Occidental Petroleum		1.75% 15 Feb 2017			—				954,028
		Orange & Rockland Utility		2.5% 15 Aug 2015			—				1,697,573
		Orix Corp		4.71% 27 Apr 2015			—				325,722
		Owens Corning Inc		6.5% 01 Dec 2016			—				222,644
		Packaging Corp of America		5.75% 01 Aug 2013			—				36,002
		Penarthmaster		1.0% 18 Dec 2014			—				1,026,173
		Petrobras Intl		5.75% 20 Jan 2020			—				376,031
		Petronas Capital Ltd		5.25% 12 Aug 2019			—				432,358
		Plains All Amer Pipeline		5.75% 15 Jan 2020			—				468,424
		Principal Financial Group		7.875% 15 May 2014			—				266,633
		Principal Financial Group		7.875% 15 May 2014			—				897,844
		Prudential Financial		5.375% 21 Jun2020			—				1,248,343
		Questar Corp		2.75% 01 Feb 2016			—				548,544
		Rabobank Nederland		4.5% 11 Jan 2021			—				1,014,003
		Raytheon Co		3.125% 15 Oct 2020			—				939,421
		Reed Elsevier Capital		8.625% 15 Jan 2019			—				476,332
		Regency Centers LP		5.25% 01 Aug 2015			—				63,450
		Regency Centers LP		5.875% 15 Jun 2017			—				154,128
		Renaissance Home Equity		1.0% 25 Nov 2034			—				204,387
		Republic Services Inc		5.0% 01 Mar 2020			—				390,135
		Republic Services Inc		3.8% 15 May 2018			—				13,144
		Residential Asset Securities		1.0% 25 May 2033			—				7,762
		Rio Tinto Fin USA Ltd		6.5% 15 Jul 2018			—				664,714
		Rowan Companies Inc		5.0% 01 Sep 2017			—				364,099
		Royal Bank of Canada		1.45% 30 Oct 2014			—				917,379

 

57

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Royal Bank Scotland Plc		2.625% 11 May 2012			—				766,276
		Royal Bank Scotland Plc		5.0% 01 Oct 2014			—				290,058
		RSHB Cap SA		7.75% 29 May 2018			—				379,429
		RyderSystem Inc		7.2% 01 Sep 2015			—				171,881
		Santander Drive Auto Receivable		1.37% 16 Mar 2013			—				259,474
		Santander Holdings		4.625% 19Apr216			—				121,855
		Saxon Assets		1.0% 25 Aug 2032			—				780
		SCSLC 2010		1.0% 25 Jul 2025			—				2,117,207
		Sempra Energy		6.5% 01 Jun 2016			—				335,889
		Simon Property Group		4.2% 01 Feb 2015			—				667,618
		SLH Open Position		0.01% 31 Dec 2060			—				2,478
		SLM Corp		5.0% 01 Oct 2013			—				97,609
		SLM Corp		8.45% 15 Jun 2018			—				402,148
		SLM Corp		5.125% 27 Aug 2012			—				176,592
		SLM Corp		5.375% 15 Jan 2013			—				147,423
		Smart Trust		1.22% 14 Nov 2013			—				618,455
		Snap On Inc		4.25% 15 Jan 2018			—				336,005
		Societe Generale		2.5% 15 Jan 2014			—				216,926
		Southern Cal Edison		5.75% 15 Mar 2014			—				467,707
		Southern Cal Edison		5.75% 15 Mar 2014			—				731,128
		Southern Co		1.95% 01 Sep 2016			—				926,180
		Southwest Airlines Co		5.25% 01 Oct 2014			—				192,714
		Southwest Airlines Co		5.75% 15 Dec 2016			—				162,416
		Southwestern Elec Power		5.875% 01 Mar 2018			—				865,406
		Spectra Energy Capital		8.0% 01 Oct 2019			—				429,913
		SPI Electricity		6.15% 15 Nov 2013			—				258,981
		Staples Inc		9.75% 15 Jan 2014			—				306,935
		Stryker Corp		2.0% 30 Sep 2016			—				938,929
		SWPC831N2		1.0% 20 Sep 2012			—				(7,320	)
		Taqa Abu Dhabi Natl Energy		4.125% 13 Mar 2017			—				259,297
		Teck Resources Limited		4.5% 15 Jan 2021			—				672,745
		Teco Finance Inc		4.0% 15 Mar 2016			—				503,017
		Telecom Italia Capital		6.175% 18 Jun 2014			—				305,131
		Thomson Reuters Corp		5.95% 15 Jul 2013			—				712,407
		Time Warner Cable Inc		8.25% 14 Feb 2014			—				693,127
		Time Warner Cable Inc		4.0% 01 Sep 2021			—				928,282
		Time Warner Cable Inc		7.5% 01 Apr 2014			—				371,579
		Time Warner Cable Inc		5.0% 01 Feb 2020			—				336,871
		Time Warner Cable Inc		5.85% 01 May 2017			—				200,087
		Time Warner Cable Inc		6.75% 01 Jul 2018			—				731,527
		Time Warner Cable Inc		4.0% 01 Sep 2021			—				444,391
		Time Warner Inc		4.7% 15 Jan 2021			—				520,231
		Time Warner Inc		4.7% 15 Jan 2021			—				446,663
		Total Capital SA		3.0% 24 Jun 2015			—				1,444,278
		Toyota Motor Credit Corp		2.0% 15 Sep 2016			—				926,652
		Trans Canada Pipelines		3.4% 01 Jun 2105			—				299,820
		Travelrs Cos		5.75% 15 Dec 2017			—				421,552
		Tyco International		4.125% 15 Oct 2014			—				353,704
		UBS AG		5.875% 20 Dec 2017			—				508,077

 

58

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		UBS AG		1.0% 28 Jan 2014			—				570,309
		UBS AG		2.25% 28 Jan 2014			—				379,939
		UBS AG		5.875% 15 Jul 2016			—				520,086
		UFJ Finance Aruba		6.75% 15 Jul 2013			—				161,666
		Unicredito Luxem Fin		6.0% 31 Oct 2017			—				168,949
		Union Bank		5.95% 11 May 2016			—				306,333
		Union Bank		1.0% 06 Jun 2014			—				673,221
		Union Electric Co		6.7% 01 Feb 2019			—				47,432
		Union Pac Corp		5.45% 31 Jan2013			—				465,872
		United Health Group		6.0% 15 Feb 2018			—				348,159
		Unum Group		5.625% 15 Sep 220			—				381,918
		US Bancorp		2.2% 15 Nov 2016			—				936,192
		US Cellular Corp		6.7% 15 Dec 2033			—				396,924
		Valero Energy Corp		6.125% 01 Feb 2020			—				412,577
		Verizon Communications		1.95% 28 Mar 2014			—				1,320,030
		Verizon Communications		6.35% 1 Apr 2019			—				220,033
		Verizon Communications		2.0% 01 Nov 2016			—				592,206
		Viacom Inc		5.625% 15 Sep 2019			—				531,471
		Virgin Media		5.25% 15 Jan 2021			—				211,999
		Virginia Elec & Pwr Co		5.1% 30 Nov 2012			—				304,160
		Vodafone Group		5.35% 27 Feb2012			—				624,042
		Wachovia Bank		4.8% 01 Nov 2014			—				410,272
		Wachovia Bank		1.0% 15 Mar 2016			—				262,134
		Wachovia Corp		5.5% 01 May 2013			—				1,853,763
		Wachovia Corp		5.5% 01 May 2013			—				345,006
		Wachovia Corp		4.875% 15 Feb 2014			—				111,994
		WAMU Mortgage Pass Thru		1.0% 25 Oct 2045			—				22,176
		Waste Mgmt Inc		7.375% 15 May 2029			—				62,055
		Waste Mgmt Inc		4.75% 30 Jun 2020			—				449,739
		Weatherford Bermuda		6.0% 15 Mar 2018			—				23,893
		Wellpoint Inc		6.0% 15 Feb 2014			—				760,686
		Wellpoint Inc		4.35% 15 Aug 2020			—				912,066
		Wells Fargo & Company		3.625% 15 Apr 2015			—				485,361
		Wells Fargo & Company		4.95% 16 Oct 2013			—				307,344
		Wells Fargo & Company		5.625% 11 Dec 2017			—				422,666
		Wells Fargo Bank		4.75% 09 Feb 2015			—				509,180
		WFRBS Commercial Mortgage		3.24% 15 Mar 2044			—				779,231
		WFRBS Commercial Mortgage		1.0% 15 Nov 2044			—				1,183,996
		Willis North America Inc		7.0% 29 Sep 2019			—				86,924
		Willis North America Inc		6.2% 28 Mar 2017			—				338,065
		Willis North America Inc		7.0% 29 Sep 2019			—				201,011
		World Omni Auto Trust		1.11% 15 May 2015			—				807,679
		WPP Finance		4.75% 21 Nov 2021			—				187,981
		Xerox Corp		5.5% 15 May 2012			—				124,034
		Xerox Corp		5.65% 15 May 2013			—				184,445
		Xerox Corp		8.25% 15 May 2014			—				242,308
		Xerox Corp		1.0% 16 May 2014			—				384,701
		Xerox Corporation		8.25% 15 May 2014			—				341,433
		XL Group Plc		5.25% 15 Sep 2014			—				345,796

 

59

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		XTO Energy		4.9% 01 Feb 2014			—				736,498
											257,539,924
		Benefit Responsive Interest Rate Wrapper Contracts
*		Aegon Institutional Markets		Open Ended Maturity			—				(170,905	)
*		Bank of America NT & SA		Open Ended Maturity			—				(172,113	)
											(343,018	)
		Synthetic Guaranteed Investment Contracts (contract value equals $683,460,094)								$	743,892,005
Commingled Investments:
*		Daily EAFE Fund		Commingled Investments			—				79,987,136
*		S & P 500 Flagship Fund		Commingled Investments			—				173,817,205
*		US Small CAP Index Futures FD CMT4		Commingled Investments			—				81,223,030
		Commingled Investments								$	335,027,371
Registered Investment Companies:
		Aberdeen Asia Pacific Ine Fd		Registered Investment Company			—				40,032
		Acadian Emerging Markets Port Instl		Registered Investment Company			—				3,199
		Aegis Value Fund Inc		Registered Investment Company			—				3,935
		Aim European Growth Investors		Registered Investment Company			—				760
		Amana Mutual Fund Trust Ine		Registered Investment Company			—				15,135
		Amer Century Target Maturities Tr 2020		Registered Investment Company			—				41,017
		American Capital Ine Builder Cl F		Registered Investment Company			—				21,917
		American Capital Ine Builder Cl R2		Registered Investment Company			—				5,488
		American Capital World Grth & Inc A		Registered Investment Company			—				7,998
		American Capital World Grwth & Inc F1		Registered Investment Company			—				11,162
		American Century Diversified Bond		Registered Investment Company			—				26,668
		American Century Equity		Registered Investment Company			—				35,168
		American Century Heritage		Registered Investment Company			—				1,815
		American Europacific Growth Class A		Registered Investment Company			—				19,325
		American Europacific Growth Class F		Registered Investment Company			—				7,42
		American Fundamental Investors Cl F		Registered Investment Company			—				8,548
		American High-Ine Class F		Registered Investment Company			—				11,478
		American Ine Fund of America Class A		Registered Investment Company			—				6,796
		American Ine Fund of America Class F		Registered Investment Company			—				12,657
		American Investmnt Co of America Cl A		Registered Investment Company			—				14,271
		American Mutual Fund Class A		Registered Investment Company			—				6,948
		American New Economy Fund Class A		Registered Investment Company			—				6,432
		American New Perspective Class A		Registered Investment Company			—				24,033
		American New Perspective R2		Registered Investment Company			—				2,701
		American New World Fund Class A		Registered Investment Company			—				7,918
		American New World Fund R2		Registered Investment Company			—				10,464

 

60

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		American Smallcap World Class F1		Registered Investment Company			—				6,766
		Arbitrage Fund Class R		Registered Investment Company			—				2,029
		Ariel Appreciation		Registered Investment Company			—				16,913
		Ariel Growth Class A		Registered Investment Company			—				9,348
		Artio International Equity Fund		Registered Investment Company			—				5,742
		Artisan Intl Investor Class		Registered Investment Company			—				12,070
		Artisan Intl Value Fund		Registered Investment Company			—				13,528
		Artisan Small Cap Growth		Registered Investment Company			—				12,652
		Barclays Bank Plc Ipath Etn		Registered Investment Company			—				1,242
		Barclays Bank Plc Ipath Etns		Registered Investment Company			—				7,459
		Barclays Bank Plc Ipath Index		Registered Investment Company			—				11,236
		Barclays Global Investors Funds Inc		Registered Investment Company			—				396
		Baron Asset		Registered Investment Company			—				2,698
		Baron Partners Fund		Registered Investment Company			—				17,445
		Berkshire Focus Fund		Registered Investment Company			—				2,586
		Berwyn Ine Fund		Registered Investment Company			—				50,581
		Blackrock Energy & Resources A		Registered Investment Company			—				37,145
		Blackrock Equity Dividend Fd-Instl		Registered Investment Company			—				22,746
		Blackrock Global Allocation Fd-Instl		Registered Investment Company			—				17,852
		Blackrock Intl Opport Class C		Registered Investment Company			—				7,505
		Blackrock Latin America Fd Cl C		Registered Investment Company			—				8,283
		Bldrs Emerging Mkts 50 Adr Index Fd		Registered Investment Company			—				3,888
		Brandywine Blue		Registered Investment Company			—				8,095
		Bridgeway Aggressive Investor 2		Registered Investment Company			—				113,770
		Bridgeway Small Cap Growth Cl N		Registered Investment Company			—				14,606
		Brown Capital Mgt Small pany Inv		Registered Investment Company			—				25,601
		Buffalo Mid Cap Fund		Registered Investment Company			—				5,792
		Buffalo Small Cap Growth		Registered Investment Company			—				18,198
		Calamos Growth Class A		Registered Investment Company			—				54,215
		Calamos Growth Fund Class C		Registered Investment Company			—				66,147
		Clipper		Registered Investment Company			—				8,318
		Cohen & Steers Realty Shares		Registered Investment Company			—				10,970
		Columbia Acorn Class Z		Registered Investment Company			—				3,670
		Columbia Acorn International		Registered Investment Company			—				7,181
		Columbia Marsico Intl Opp Prim Z		Registered Investment Company			—				3,871
		Columbia Real Estate Equity Cl Z		Registered Investment Company			—				52,335
		Columbia Small Cap Core Cl Z		Registered Investment Company			—				8,016
		Columbia Value and Restructuring Cl Z		Registered Investment Company			—				41,857
		Credit Suisse Nassau Brh Elements		Registered Investment Company			—				—
		CRM Mid Cap Value Investor Shares		Registered Investment Company			—				15,590
		Delaware Mid Cap Growth Class I		Registered Investment Company			—				32,167
		Deutsche Bank Ag London Powershares		Registered Investment Company			—				9,801
		Direxion Daily Energy Bull		Registered Investment Company			—				469
		Direxion Latin America Bull		Registered Investment Company			—				1
		Direxion Shs Etf Tr Daily Finl Bear		Registered Investment Company			—				29,503
		Direxion Shs Etf Tr Daily Gold Miners Bull		Registered Investment Company			—				1,580
		Direxion Shs Etf Tr Daily Nat Gas Related Bull		Registered Investment Company			—				396
		Direxion Shs Etf Tr Daily Small Cap Bear		Registered Investment Company			—				13,240
		Dodge & Cox Ine		Registered Investment Company			—				90,653

 

61

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Dodge & Cox Intl Stock Fund		Registered Investment Company			—				73,404
		Dodge & Cox Stock		Registered Investment Company			—				96,740
		Dreyfus Appreciation Fund		Registered Investment Company			—				4,179
		Dreyfus Bond Market Index Class R		Registered Investment Company			—				41,522
		Dreyfus Opportunistic Midcap Value Cl A		Registered Investment Company			—				10,305
		Dreyfus Premier Greater China Cl A		Registered Investment Company			—				7,364
		Dreyfus Premier Greater China Cl R		Registered Investment Company			—				714
		Driehaus Intl Discovery		Registered Investment Company			—				9,848
		DWs Dreman Intl Value Class S		Registered Investment Company			—				4,260
		DWS International Class		Registered Investment Company			—				4,086
		DWS S & P 500 Plus Class S		Registered Investment Company			—				1,601
		DWS Select Alternati Ve Allocation Fund S		Registered Investment Company			—				7,864
		Eagle Small Cap Growth Fund Cl I		Registered Investment Company			—				5,948
		Eaton Vance Ltd Duration Ine Fd		Registered Investment Company			—				7,615
		Eaton Vance Worldwide Health Sciences		Registered Investment Company			—				1,958
		Fairholme Fund		Registered Investment Company			—				6,216
		Fam Value		Registered Investment Company			—				60,465
		FBR Balanced Investor Class		Registered Investment Company			—				7,253
		FBR Focus Fund		Registered Investment Company			—				2,464
		FBR Gas Utility Index		Registered Investment Company			—				2,232
		Federated Prudent Bear Class C		Registered Investment Company			—				55,206
		Federated Prudent Bear Fund Class A		Registered Investment Company			—				1,327
		Fidelity Advisor Mid Cap		Registered Investment Company			—				4,435
		Fidelity Advisor New Insights Cl I		Registered Investment Company			—				42,762
		Fidelity Advisor Strategic Inc Cl I		Registered Investment Company			—				43,516
		Fidelity Blue Chip Growth		Registered Investment Company			—				1,943
		Fidelity Canada		Registered Investment Company			—				42,185
		Fidelity Capital & Ine		Registered Investment Company			—				38,558
		Fidelity Capital Appreciation		Registered Investment Company			—				14,926
		Fidelity Contrafund		Registered Investment Company			—				157,952
		Fidelity Convertible Securities		Registered Investment Company			—				9,888
		Fidelity Diversified International		Registered Investment Company			—				51,935
		Fidelity Dividend Growth		Registered Investment Company			—				21,250
		Fidelity Emerging Markets		Registered Investment Company			—				26,868
		Fidelity Freedom 2025		Registered Investment Company			—				6,225
		Fidelity High		Registered Investment Company			—				70,074
		Fidelity Intl Discovery		Registered Investment Company			—				40,236
		Fidelity Intl Real Estate Fund		Registered Investment Company			—				10,585
		Fidelity Large Capital Stock		Registered Investment Company			—				2,721
		Fidelity Latin America		Registered Investment Company			—				57,294
		Fidelity Leveraged Company Stock		Registered Investment Company			—				24,035
		Fidelity Low Priced Stock		Registered Investment Company			—				31,746
		Fidelity Mid Cap Growth		Registered Investment Company			—				8,866
		Fidelity New Markets		Registered Investment Company			—				21,298
		Fidelity Real Estate Investment		Registered Investment Company			—				2,982
		Fidelity Select Biotechnology		Registered Investment Company			—				5,166
		Fidelity Select Chemicals		Registered Investment Company			—				7,473
		Fidelity Select Energy Service		Registered Investment Company			—				7,344
		Fidelity Select Materials Portfolio		Registered Investment Company			—				2,412

 

62

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Fidelity Select Natural Resources		Registered Investment Company			—				24,580
		Fidelity Select Technology		Registered Investment Company			—				2,472
		Fidelity Select Transport		Registered Investment Company			—				7,669
		Fidelity Small Cap Stock		Registered Investment Company			—				6,733
		Fidelity Small Cap Value		Registered Investment Company			—				3,081
		Fidelity Southeast Asia		Registered Investment Company			—				14,209
		Fidelity Strategic		Registered Investment Company			—				15,424
		Fidelity Strategic Real Return		Registered Investment Company			—				6,239
		Fidelity US Bond Index		Registered Investment Company			—				8,700
		Fidelity Value		Registered Investment Company			—				5,627
		First Eagle Global Class C		Registered Investment Company			—				137,804
		First Eagle Global Class I		Registered Investment Company			—				6,999
		First Exchange Traded Internet Index Fd		Registered Investment Company			—				12,920
		FMI Large Cap Fund		Registered Investment Company			—				5,843
		Forward Global Emerg Markets Instl Cl		Registered Investment Company			—				685
		Forward Intl Equity Fund		Registered Investment Company			—				37,076
		Franklin Global Real Estate Adv Cl		Registered Investment Company			—				5,668
		Franklin Growth Class C		Registered Investment Company			—				6,266
		Franklin Strategic Inc Cl R		Registered Investment Company			—				2,016
		Franklin Strategic Ine Class A		Registered Investment Company			—				14,869
		Franklin Temp Mutual Series Class R		Registered Investment Company			—				15,924
		Franklin Utilities Advisor Class		Registered Investment Company			—				7,443
		Fund*X Upgrader Fund		Registered Investment Company			—				34,315
		Fundamental Investors		Registered Investment Company			—				28,450
		Fundx Aggressive Upgrader Fund		Registered Investment Company			—				1,528
		Fundx Etf Upgrader Fund		Registered Investment Company			—				1,609
		Gabelli Equity Ine Fund		Registered Investment Company			—				13,768
		Gabelli Utilities Fund Class C		Registered Investment Company			—				9,657
		Gamco Growth Fund		Registered Investment Company			—				9,680
		Gamco Westwood Equity		Registered Investment Company			—				940
		Global Resources Fund		Registered Investment Company			—				12,935
		Global X Fds Global X Lithium Etf		Registered Investment Company			—				4,299
		Global X Fds Global X Uranium Etf		Registered Investment Company			—				3,260
		Goldman Sachs Asset Alloc Growth Strat		Registered Investment Company			—				12,928
		Goldman Sachs Mid Cap Val Fd		Registered Investment Company			—				3,082
		Greenspring Fund		Registered Investment Company			—				18,052
		Growth Fund of America		Registered Investment Company			—				14,996
		Guggenheim Bric Etf		Registered Investment Company			—				10,509
		Hancock Horizon Burkenroad Sml Cap D		Registered Investment Company			—				101,428
		Hancock John Pfd Equity Ine Fd		Registered Investment Company			—				4,296
		Harbor Bond Inst.		Registered Investment Company			—				141,981
		Harbor International		Registered Investment Company			—				83,549
		Harbor International Investor Shares		Registered Investment Company			—				43,695
		Heartland Value		Registered Investment Company			—				19,595
		Hussman Strategic Growth		Registered Investment Company			—				19,059
		Hussman Strategic Total Return		Registered Investment Company			—				29,643
		Icon Energy Cl S		Registered Investment Company			—				8,129
		Icon Healthcare Cl S		Registered Investment Company			—				8,311
		Icon Materials Cl S		Registered Investment Company			—				4,254

 

63

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Intrepid Small Cap Fund Investor Class		Registered Investment Company			—				2,532
		Inves Co Intl Growth Fund Class A		Registered Investment Company			—				5,124
		Inves Co Van Kampen Equity		Registered Investment Company			—				16,853
		Ishares Barclays US Aggregate Bd Fd		Registered Investment Company			—				43,245
		Ishares ex Gold Trust Ishares Etf		Registered Investment Company			—				18,657
		Ishares Iboxx $ Investment Grade Bd Fund		Registered Investment Company			—				47,964
		Ishares Inc Mcsi Bric Index Fd		Registered Investment Company			—				5,210
		Ishares Inc Msci Australia Index Fund		Registered Investment Company			—				2,680
		Ishares Inc Msci Brazil Free Index Fu Nd		Registered Investment Company			—				29,830
		Ishares Inc Msci Malaysia Free Index Fd		Registered Investment Company			—				11,524
		Ishares Inc Msci Singapore Index Fd		Registered Investment Company			—				30,099
		Ishares Inc Msci Turkey Index Fd		Registered Investment Company			—				4,221
		Ishares Russell 1000 Growth		Registered Investment Company			—				2,466,519
		Ishares S & P Gsti Software Index Fund		Registered Investment Company			—				18,401
		Ishares S & P North American Index Fd		Registered Investment Company			—				26,638
		Ishares Silver Tr Ishares		Registered Investment Company			—				52,937
		Ishares Tr Cohen & Steers Realty Index Fd		Registered Investment Company			—				32,057
		Ishares Tr Dow Jones US Consumer Goods Fd		Registered Investment Company			—				8,659
		Ishares Tr Dow Jones US Energy Sector Index Fd		Registered Investment Company			—				6,019
		Ishares Tr Dow Jones US Medical Devices Fd		Registered Investment Company			—				11,752
		Ishares Tr Dow Jones Us Oil & Gas Index Fd		Registered Investment Company			—				2,127
		Ishares Tr Dow Jones US Technology Index Fd		Registered Investment Company			—				9,617
		Ishares Tr Ftse Nareit Mtg Plus Capped Index Fd		Registered Investment Company			—				5,969
		Ishares Tr Iboxx $ High Yield Corp Bd Fd		Registered Investment Company			—				17,886
		Ishares Tr Msci Eafe Index Fd		Registered Investment Company			—				34,630
		Ishares Tr Msci Eafe Value Index Fd		Registered Investment Company			—				5,904
		Ishares Tr Msci Emerging Mkts Index Fd		Registered Investment Company			—				80,630
		Ishares Tr Nasdaq Biotechnology Index Fd		Registered Investment Company			—				5,218
		Ishares Tr Russell 1000 Growth Index Fd		Registered Investment Company			—				18,927
		Ishares Tr Russell 1000 Index Fd		Registered Investment Company			—				12,270
		Ishares Tr Russell 1000 Value Index Fd		Registered Investment Company			—				16,621
		Ishares Tr Russell 2000 Value Index Fd		Registered Investment Company			—				4,979
		Ishares Tr Russell Midcap Value Index Fd		Registered Investment Company			—				5,487
		Ishares Tr S & P 500 Index Fd		Registered Investment Company			—				15,854
		Ishares Tr S & P Latin Amer 40 Index Fd		Registered Investment Company			—				11,345
		Ishares Tr S & P Micap 400/Growth Index Fund		Registered Investment Company			—				19,847
		Ishares Tr S & P Midcap 400 Index Fd		Registered Investment Company			—				15,451
		Ishares Tr S & P Midcap 400/Value Index Fd		Registered Investment Company			—				64,608
		Ishares Tr S & P US Pfd Stk Index Fd		Registered Investment Company			—				1,781
		Ishares Tr U S Treas Inflation Protected Secs Fd		Registered Investment Company			—				167,143
		Ishares Trust S & P Smallcap 600 Index Fd		Registered Investment Company			—				28,994
		Iva International Fund Cl A		Registered Investment Company			—				8,502
		Ivy Asset Strategy Class R		Registered Investment Company			—				15,085
		Ivy Global Natural Resources Class C		Registered Investment Company			—				31,984
		Ivy Mid Cap Growth Cl I		Registered Investment Company			—				6,724
		Janus Balanced		Registered Investment Company			—				43,268
		Janus Mercury		Registered Investment Company			—				10,334
		Janus Orion Fund		Registered Investment Company			—				6,622
		Janus Overseas		Registered Investment Company			—				50,754

 

64

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Janus Triton Fund Class T Shares		Registered Investment Company			—				46,997
		Janus Worldwide Fund Class T		Registered Investment Company			—				5,601
		John Hancock Patriot Prem Divid Fd		Registered Investment Company			—				10,392
		JPMorgan Mid Cap Value Instl		Registered Investment Company			—				339
		JPMorgan Small Cap Equity Fnd Select Cl		Registered Investment Company			—				26,805
		Kinetics Small Cap Opportunities		Registered Investment Company			—				7,345
		Lazard Developing Mrkts Eq Cl Shares		Registered Investment Company			—				1,568
		Liberty All Star Equity Fd Sbi		Registered Investment Company			—				92
*		Loomis Sayles Bond Retail Shares		Registered Investment Company			—				44,329
*		Loomis Sayles Global Bond Retail		Registered Investment Company			—				10,457
*		Loomis Sayles Invst Grade Bond Cl A		Registered Investment Company			—				7,648
		Lord Abbett Short Duration Ine Cl A		Registered Investment Company			—				16,092
		Managers Fremont Micro-Cap Fund		Registered Investment Company			—				19,218
		Managers Intermediat Duration Government		Registered Investment Company			—				22,955
		Manning & Napier Equity Series		Registered Investment Company			—				67,147
		Manning & Napier Overseas Series		Registered Investment Company			—				2,536
		Manning & Napier Pro Blend Max Term Ser		Registered Investment Company			—				853
		Market Vectors Agribusiness Etf		Registered Investment Company			—				9,490
		Market Vectors Solar Energy Etf		Registered Investment Company			—				785
		Market Vectors Uranium Nuclear Energy Etf		Registered Investment Company			—				8,908
		Marshall Mid Cap Value Cl Y		Registered Investment Company			—				4,829
		Marsico Internat’L Opportunities		Registered Investment Company			—				24,067
		Matthews Asia Dividend Fund		Registered Investment Company			—				10,258
		Matthews Dragon Century China		Registered Investment Company			—				5,486
		Matthews India Fund		Registered Investment Company			—				6,569
		Matthews Pacific Tiger		Registered Investment Company			—				46,853
		Merger Fund		Registered Investment Company			—				51,772
		Meridian Fund		Registered Investment Company			—				63,977
		Meridian Value Fund		Registered Investment Company			—				6,100
		Metropolitan West Tot Return Bond Cl M		Registered Investment Company			—				1,059
		Nasdaq Prem Ine & Growth Fd Inc		Registered Investment Company			—				7,462
		Needham Growth Fund		Registered Investment Company			—				1,200
		Neuberger Berman Real Estate Trust Cl		Registered Investment Company			—				21,251
		Northern Global Fixed Ine		Registered Investment Company			—				1,985
		Nuveen Insd Mun Oppty Fd Inc		Registered Investment Company			—				15,306
		Nuveen Mun Value Fd		Registered Investment Company			—				10,066
		Nuveen Quality Pfd Ine Fd 2		Registered Investment Company			—				121,365
		Oakmark Equity & Ine Fd		Registered Investment Company			—				231,281
		Oakmark Fund		Registered Investment Company			—				70,329
		Oakmark Intl		Registered Investment Company			—				27,703
		Oakmark Intl Small Cap		Registered Investment Company			—				13,786
		Oppenheimer Int’L Growth Class A		Registered Investment Company			—				6,893
		Parnassus Equity Ine Portfolio		Registered Investment Company			—				47,092
		Parnassus Small Cap		Registered Investment Company			—				1,624
		Parnassus Workplace		Registered Investment Company			—				1,849
		Perkins Mid Cap Value Class I		Registered Investment Company			—				5,914
		Permanent Portfolio Family Fds		Registered Investment Company			—				297,196
*		Pimco All Asset Inst Class		Registered Investment Company			—				107,552
*		Pimco Emerging Markets Bond Fund D		Registered Investment Company			—				16,680

 

65

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
*		Pimco Investment Grade Corp Bond Cl D		Registered Investment Company			—				21,502
*		Pimco Real Return Class D		Registered Investment Company			—				49,111
*		Pimco Stocksplus Tr Short Strategy Cl A		Registered Investment Company			—				16,806
*		Pimco Total Return Class A		Registered Investment Company			—				25,016
*		Pimco Total Return Class D		Registered Investment Company			—				15,432
		Powershares Db Modity Index Tracking Fd		Registered Investment Company			—				2,738
		Powershares Db Multi Sector Db Agric Fd		Registered Investment Company			—				4,070
		Powershares Db Multi Sector Base Metals Fd		Registered Investment Company			—				7,460
		Powershares Exchange Dynamic Basic Matls		Registered Investment Company			—				6,978
		Powershares Exchange Golden Dragon Halter		Registered Investment Company			—				1,627
		Powershares Ftse Rafi US 1000		Registered Investment Company			—				36,566
		Powershares Qqq Tr Unit Ser 1		Registered Investment Company			—				96,865
		Primecap Odyssey Aggressive Grwth Fd		Registered Investment Company			—				1,484
		Proshares Tr Ii Proshares Ultra Gold		Registered Investment Company			—				632
		Proshares Tr Ii Proshares Ultrashort Euro		Registered Investment Company			—				1,547
		Proshares Tr Proshares Ultrashort S & P 500		Registered Investment Company			—				47,451
		Proshares Tr Short Real Estate Fd		Registered Investment Company			—				10,287
		Proshares Tr Ultrapro Midcap400		Registered Investment Company			—				8,250
		Proshares Tr Ultrapro Russell2000		Registered Investment Company			—				7,019
		Proshares Tr Ultrashort Financials New		Registered Investment Company			—				3,856
		Proshares Trust Ultra Financials		Registered Investment Company			—				18,789
		Proshares Ultra Gas Proshares		Registered Investment Company			—				4,132
		Proshares Ultra Qqq Proshares		Registered Investment Company			—				28,511
		Proshares Ultra S & P 500 Proshares		Registered Investment Company			—				23,687
		Proshares Ultrashort 20+ Yr Treas		Registered Investment Company			—				3,614
		Prudential Jennison Natural Resources R		Registered Investment Company			—				6,199
		Putnam High Ine Conv & Bd Fd		Registered Investment Company			—				19,200
		Rainier Small Mid Cap Equity		Registered Investment Company			—				6,751
		Reaves Util Ine Fd Sh Ben Int		Registered Investment Company			—				180
		Rivernorth Core Oppportunity Fund		Registered Investment Company			—				20,599
		Royce Low Priced Stock Fund		Registered Investment Company			—				168,079
		Royce Microcap		Registered Investment Company			—				84,060
		Royce Opportunity Fund		Registered Investment Company			—				7,164
		Royce Pa Mutual		Registered Investment Company			—				148,551
		Royce Premier Series		Registered Investment Company			—				50,216
		Royce Special Equity		Registered Investment Company			—				16,732
		Royce Total Return Fund		Registered Investment Company			—				30,599
		Rs Global Natural Resources Fund Cl Y		Registered Investment Company			—				5,485
		Russell Emerging Markets		Registered Investment Company			—				4,742
		Rydex Etf S & P 500 Equal Weighted Index Fd		Registered Investment Company			—				9,363
		Schroder Emerging Market Equity Adv Cl		Registered Investment Company			—				46,691
		Schwab Fundamental Emg Mkts Index Instl		Registered Investment Company			—				6,566
		Schwab Strategic Tr Us Dividend Equity Etf		Registered Investment Company			—				78,540
		Scout International Fund		Registered Investment Company			—				875
		Sector Spdr Tr Shs Ben Int Financial		Registered Investment Company			—				4,085
		Sector Spdr Tr Shs Ben Int Technology		Registered Investment Company			—				6,453
		Sector Spdr Tr Shs Ben Int Utilities		Registered Investment Company			—				23,637
		Select Energy		Registered Investment Company			—				13,911
		Select Medical Delivery		Registered Investment Company			—				47,236

 

66

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Select Natural Gas		Registered Investment Company			—				2,144
		Select Sector Spdr Tr Health Care		Registered Investment Company			—				26,814
		Selected American Shares		Registered Investment Company			—				76,489
		Shelton S & P Mid Cap Index		Registered Investment Company			—				10,550
		Skyline Special Equities		Registered Investment Company			—				7,315
		Sound Shore Fd Inc		Registered Investment Company			—				3,217
		Spartan 500 Index Fd Advantage Class		Registered Investment Company			—				96,535
		Spartan Ext Mkt Indx Fd Advantage Class		Registered Investment Company			—				90,360
		Spartan Total Market Index		Registered Investment Company			—				29,892
		Spdr Dow Jones Indl Average Etf		Registered Investment Company			—				34,338
		Spdr Gold Tr Gold Shs		Registered Investment Company			—				460,682
		Spdr Index Wilshire Intl Real Estate Etf		Registered Investment Company			—				12,771
		Spdr S & P 500 Etf Trust Unit Ser 1 S & P		Registered Investment Company			—				123,776
		Spdr Ser Tr DJ Wilshire Mid Cap Growth Etf		Registered Investment Company			—				7,369
		Spdr Ser Tr DJ Wilshire Reit Etf		Registered Investment Company			—				41,086
		Spdr Ser Tr DJ Mid Cap Etf		Registered Investment Company			—				7,863
		Spdr Ser Tr S & P Pharmeceuticals Etf		Registered Investment Company			—				9,966
		Spdr Ser Tr Wells Fargo Pfd Stock Etf		Registered Investment Company			—				17,198
*		SSGA Emerging Markets		Registered Investment Company			—				25,091
*		SSGA International Stock Selection		Registered Investment Company			—				6,135
		Star Bulk Carriers Corp Shs		Registered Investment Company			—				15,022
		T Rowe Price Cap Appreciation		Registered Investment Company			—				190,269
		T Rowe Price Corporate		Registered Investment Company			—				109,585
		T Rowe Price Emerg Euro & Mediterranean		Registered Investment Company			—				2,064
		T Rowe Price Equity		Registered Investment Company			—				9,577
		T Rowe Price Growth Stock		Registered Investment Company			—				7,866
		T Rowe Price Growth Stock Advisor Cl		Registered Investment Company			—				2,690
		T Rowe Price Health Sciences		Registered Investment Company			—				16,712
		T Rowe Price International Bond		Registered Investment Company			—				8,482
		T Rowe Price Intl Discovery Fund		Registered Investment Company			—				70,223
		T Rowe Price Intl Emerging Market Bond		Registered Investment Company			—				7,243
		T Rowe Price Latin America Fund		Registered Investment Company			—				11,290
		T Rowe Price Media & Telemunications		Registered Investment Company			—				2,799
		T Rowe Price Mid Cap Growth		Registered Investment Company			—				21,027
		T Rowe Price Mid Cap Value		Registered Investment Company			—				18,156
		T Rowe Price New Horizons Fd Inc		Registered Investment Company			—				1,062
		T Rowe Price Ret 2040 Fd		Registered Investment Company			—				4,420
		T Rowe Price Rtmt 2015 Advisor Class		Registered Investment Company			—				21,098
		T Rowe Price Rtmt 2025 Fund Adv Shrs		Registered Investment Company			—				21,447
		T Rowe Price Rtmt Fund 2040 Adv Shrs		Registered Investment Company			—				4,449
		T Rowe Price Small Cap Value Fund		Registered Investment Company			—				2,485
		Target Moderate Allocation Cl C		Registered Investment Company			—				15,555
		Target Retirement 2010 Fd		Registered Investment Company			—				5,343,270
		Target Retirement 2015 Fd		Registered Investment Company			—				18,341,730
		Target Retirement 2020 Fd		Registered Investment Company			—				21,454,676
		Target Retirement 2025 Fd		Registered Investment Company			—				24,688,195
		Target Retirement 2030 Fd		Registered Investment Company			—				27,153,084
		Target Retirement 2035 Fd		Registered Investment Company			—				30,062,077
		Target Retirement 2040 Fd		Registered Investment Company			—				22,422,639

 

67

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Target Retirement 2045 Fd		Registered Investment Company			—				19,142,442
		Target Retirement 2050 Fd		Registered Investment Company			—				15,533,070
		TCW Emerging Mkts Ine Cl I		Registered Investment Company			—				5,095
		TCW Select Equities Class N		Registered Investment Company			—				6,184
		TCW Total Return Bond Class I		Registered Investment Company			—				50,372
		Templeton China World Fund Adv Class		Registered Investment Company			—				9,478
		Templeton Emerging Mrtks Small Cap A		Registered Investment Company			—				4,887
		Templeton Global Bond Advisor Class		Registered Investment Company			—				16,124
		Templeton Global Bond Class A		Registered Investment Company			—				8,224
		Templeton Global Bond Class C		Registered Investment Company			—				48,060
		The Contrarian Fund		Registered Investment Company			—				19,318
		The Delafield Fund		Registered Investment Company			—				1,807
		Third Ave Small Cap Value Fd		Registered Investment Company			—				19,790
		Third Avenue Value		Registered Investment Company			—				4,061
		Thompson Plumb Growth Fund		Registered Investment Company			—				255
		Thornburg Intl Value Cl Instl		Registered Investment Company			—				15,043
		Timothy Plan Conserv Growth Cl C		Registered Investment Company			—				19,006
		Timothy Plan Fixed Ine Class C		Registered Investment Company			—				4,092
		Timothy Plan Strateg Growth Cl C		Registered Investment Company			—				9,575
		Tocqueville Fund		Registered Investment Company			—				7,979
		Tocqueville Gold Fund		Registered Investment Company			—				14,967
		Touchstone Small Cap Value Cl A		Registered Investment Company			—				8,625
		Transamerica Systmtc Small/Mid Cap Value C		Registered Investment Company			—				17,613
		Tributary Growth Oppt Instl		Registered Investment Company			—				4,571
		Tweedy Browne Global Value Fund		Registered Investment Company			—				86,953
		UnDiscovered Mgrs Behavior Value Instl		Registered Investment Company			—				13,551
		United Sts Modity Index Fd		Registered Investment Company			—				3,502
		United Sts Oil Fd LP		Registered Investment Company			—				47,066
		US Global Region East European		Registered Investment Company			—				2,013
		Value Line		Registered Investment Company			—				1,928
		Value Line Small Cap Growth		Registered Investment Company			—				27,075
		Van Eck Global Hard Assets Class C		Registered Investment Company			—				9,002
		Vanguard 500 Index Fd Investor Shs		Registered Investment Company			—				132,143
		Vanguard Balanced Index Investor Class		Registered Investment Company			—				6,573
		Vanguard Chester Fds		Registered Investment Company			—				15,635,972
		Vanguard Developed Mrkts Index Inv		Registered Investment Company			—				20,572
		Vanguard Dividend Growth Investor Cl		Registered Investment Company			—				38,727
		Vanguard Energy Investor Fund		Registered Investment Company			—				185,467
		Vanguard Equity Ine Investor Cl		Registered Investment Company			—				10,065
		Vanguard Fi High Yld Corp Investor Cl		Registered Investment Company			—				5,757
		Vanguard Global Equity Investor Cl		Registered Investment Company			—				18,388
		Vanguard GNMA Investor Cl		Registered Investment Company			—				20,244
		Vanguard Growth Index Investor Cl		Registered Investment Company			—				6,729
		Vanguard Index Fds Vanguard Growth Vipers		Registered Investment Company			—				9,264
		Vanguard Index Fds Vanguard Large Cap Vipers		Registered Investment Company			—				5,666
		Vanguard Index Fds Vanguard Reit Etf		Registered Investment Company			—				5,800
		Vanguard Index Fds Vanguard Total Stk Mkt Etf		Registered Investment Company			—				39,373
		Vanguard Index Trust Sm Cap Grwth Inv Cl		Registered Investment Company			—				44,728
		Vanguard Inflation Protected Secs Inv		Registered Investment Company			—				51,714

 

68

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
		Vanguard Intermed Term Tax Exempt Inv		Registered Investment Company			—				1,333
		Vanguard Inter-Term Bond Index Port Inv		Registered Investment Company			—				75,027
		Vanguard Msci Emerging Mkts Etf		Registered Investment Company			—				79,908
		Vanguard Intl Value Port Inv Cl		Registered Investment Company			—				1,697
		Vanguard Long Term US Treasury Investor		Registered Investment Company			—				30,842
		Vanguard Mid Cap Grwth Indx Cl Inves		Registered Investment Company			—				979
		Vanguard Mid Cap Index Investor Cl		Registered Investment Company			—				158,204
		Vanguard Mid Cap Value Index Inv		Registered Investment Company			—				5,909
		Vanguard Reit Index Investor		Registered Investment Company			—				110,955
		Vanguard Sector Index Fds		Registered Investment Company			—				8,510
		Vanguard Finls Vipers		Registered Investment Company			—				9,858
		Vanguard Short Term Bond Index Investor		Registered Investment Company			—				169,965
		Vanguard Small Cap Stock Ind Trust Inv		Registered Investment Company			—				61,067
		Vanguard Appreciation Index Fd Viper Shs		Registered Investment Company			—				27,758
		Vanguard Strategic Equity Investor		Registered Investment Company			—				3,237
		Vanguard Target Ret 2025 Fd Investor Cl		Registered Investment Company			—				194,966
		Vanguard Target Ret 2035 Fd Investor Cl		Registered Investment Company			—				116,027
		Vanguard Target Retirement 2040 Fd		Registered Investment Company			—				4,414
		Vanguard Telemunication Svcs Vipers		Registered Investment Company			—				11,361
		Vanguard Total Intl Stock Index Inv		Registered Investment Company			—				5,257
		Vanguard Total Stock Market Investor		Registered Investment Company			—				46,825
		Vanguard Total Stock Mrkt Signal Cl Shs		Registered Investment Company			—				88,158
		Vanguard Value Index Investor		Registered Investment Company			—				10,682
		Vanguard Wellington Investor		Registered Investment Company			—				95,373
		Vanguard Windsor II Admiral		Registered Investment Company			—				128,320
		Vanguard Windsor II Investor		Registered Investment Company			—				48,588
		Virtus Alternatives Diversifier Cl I		Registered Investment Company			—				5,975
		Wasatch Micro-Cap Value Fund		Registered Investment Company			—				2,151
		Wells Fargo Asia Pacific Fd-Investor		Registered Investment Company			—				81
		Wells Fargo C & B Mid Cap Value Fd		Registered Investment Company			—				135
		Wells Fargo Growth Fund-Investor Class		Registered Investment Company			—				1,891
		William Blair Intl Growth Fund		Registered Investment Company			—				19,150
		Wisdomtree Tr Defa High Yielding Equity Fd		Registered Investment Company			—				5,484
		Wisdomtree Tr Japan Smallcap Divid Fd		Registered Investment Company			—				12,766
		World Precious Minerals Fund		Registered Investment Company			—				658
		Yacktman Focused Fd		Registered Investment Company			—				53,389
		Yacktman Fund		Registered Investment Company			—				194,639
		Registered Investment Companies								$	214,074,004

 

69

---

Table of Contents

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2011

 

 

Identity of Issue				Description of Investment		Cost (1)				Current Value
*		Notes Receivables from Participants		Interest rates range from 4.25% to 10.5%						$	40,514,342
		Collateral Held on Loaned Securities
		*  Quality D Short-term Investment Fund					—			$	13,782,088
		Total Investments and Notes Receivables from Participants					—			$	1,859,555,767

 

*	Party-in-interest

**	These investments include securities that were loaned to brokers under the securities lending program with the Trustee.

(1)	Cost information not required for participant-directed investments.

 

70

---

Table of Contents

SIGNATURE

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

 

				BAXTER INTERNATIONAL INC. AND SUBSIDIARIES
				INCENTIVE INVESTMENT PLAN
Date: June 27, 2012				By:		/s/ Robert J. Hombach
						Robert J. Hombach
						Member of the Administrative Committee