Edgar Filing: BAXTER INTERNATIONAL INC

BAXTER HEALTHCARE of PUERTO RICO SAVINGS AND INVESTMENT PLAN

Date: June 25, 2014

/s/ Robert J. Hombach

Robert J. Hombach

Member of the Administrative Committee

11-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 11-K

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

For the year ended December 31, 2013

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

For the transition period from to

Commission file number 1-4448

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

Baxter Healthcare of Puerto Rico Savings and Investment Plan

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

Baxter International Inc.

One Baxter Parkway

Deerfield, IL 60015

(224) 948-2000

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Financial Statements and Supplemental Schedule

December 31, 2013 and 2012

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Index

December 31, 2013 and 2012


	Page(s)

Report of Independent Registered Public Accounting Firm		1

Financial Statements

Statements of Net Assets Available for Benefits as of December 31, 2013 and 2012		2

Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 2013 and 2012		3

Notes to Financial Statements		4-15

Supplemental Information

Schedule H, Line 4i: Schedule of Assets (Held at End of Year) as of December 31, 2013		16-36

Report of Independent Registered Public Accounting Firm

To the Participants and Administrative Committee of

the Baxter Healthcare of Puerto Rico Savings and Investment Plan

Deerfield, Illinois

We have audited the accompanying statements of net assets available for benefits of the Baxter Healthcare of Puerto Rico Savings and Investment Plan (“the Plan”) as of December 31, 2013 and 2012, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2013 and 2012, and the changes in net assets available for benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule H, Line 4i - Schedule of Assets (Held at End of Year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic 2013 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2013 financial statements taken as a whole.

/s/ Crowe Horwath LLP

Oak Brook, Illinois

June 25, 2014

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Statements of Net Assets Available for Benefits

December 31, 2013 and 2012 (in thousands)


	2013			2012
Assets
Investments
Cash and cash equivalents	$	672		$	910
Common stock (including securities on loan of $26 in 2013 and $36 in 2012)		10,984			9,953
U.S. government and government agency issues (including securities on loan of $71 in 2013 and $104 in 2012)		418			363
Corporate and other obligations (including securities on loan of $87 in 2013 and $97 in 2012)		511			517
Commingled funds		15,625			7,886
Synthetic guaranteed investment contracts		20,329			20,200
Registered investment companies		—			2,703
Collateral held on loaned securities		188			242

Total investments at fair value		48,727			42,774

Receivables
Note receivables from participants		4,073			3,807
Sponsor contributions		540			399
Accrued interest and dividends		66			58
Due from brokers for securities sold		9			16

Total receivables		4,688			4,280

Total assets		53,415			47,054

Liabilities
Accounts payable		424			362
Collateral to be paid on loaned securities		188			242

Total liabilities		612			604

Net assets available for benefits, reflecting investments at fair value		52,803			46,450
Adjustment from fair value to contract value for fully benefit-responsive investment contracts		(1,023	)		(1,785	)

Net assets available for benefits	$	51,780		$	44,665

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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Statements of Changes in Net Assets Available for Benefits

For the Years Ended December 31, 2013 and 2012 (in thousands)


	2013		2012
Additions to net assets attributed to
Investment income
Net appreciation in fair value of investments	$	4,544	$	3,706
Interest		645		703
Dividends		247		285

Net investment income		5,436		4,694

Participant loan interest		156		148
Contributions
Sponsor		2,011		1,802
Participant		3,281		3,160

		5,292		4,962

Total additions		10,884		9,804

Deductions from net assets attributed to
Benefits paid		3,346		3,951
Plan expenses		423		390

Total deductions		3,769		4,341

Net increase		7,115		5,463
Net assets available for benefits
Beginning of year		44,665		39,202

End of year	$	51,780	$	44,665

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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

1.	General Description of the Plan

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

The Plan is a defined contribution plan which became effective on January 1, 1998. The Plan was created for the purpose of providing retirement benefits to Puerto Rico employees of Baxter Healthcare S.A., the Sponsor or the Company, a subsidiary of Baxter International Inc. (Baxter) and to encourage and assist employees in adopting a regular savings program by means of payroll deductions through a plan that qualifies under the applicable laws of both the Puerto Rico and the United States Internal Revenue Codes. Plan participants may authorize the Company to make payroll deductions under the Plan ranging from 1% to 50% of their pre-tax monthly compensation, limited to a maximum of $15,000 and $13,000 a year in 2013 and 2012, respectively. Participants who have attained the age of 50 by the end of the year may contribute up to an additional $1,500 per year in “catch-up” contributions. Newly hired employees are deemed to have elected to contribute 3% of compensation unless they make a contrary election. The Company matches a participant’s savings contributions at the rate of 50 cents for each dollar of a participant’s pre-tax contribution, up to a maximum of 6% of a participant’s compensation. The Company also contributes an additional non-matching 3% of compensation for employees that are not eligible to participate in the Company’s Puerto Rico defined benefit pension plan, which includes all new employees hired on or after January 1, 2008. Participants are immediately vested in their elective contributions plus actual earnings thereon. Vesting in the Company’s matching and non-matching contributions plus actual earnings thereon is based on years of service. The matching contributions vest in accordance with the following vesting schedule:


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

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

Participants may borrow from their vested accounts a minimum of $500 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. The loans are secured by the balance in the participant’s account and bear interest at the prime rate at the last day of the month prior to loan request, plus one percent.

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

Each participant’s account is credited with the participant’s contributions and an allocation of the Company’s contributions and Plan earnings, and is charged with his or her withdrawals and an allocation of Plan-related

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

expenses. Allocations are based on participant earnings or account balances, as defined in the Plan document. The net income of the Plan is posted to the participant’s accounts on a daily basis. Each participant directs the investment of his or her account to any of the investment options available under the Plan.

Upon enrollment in the Plan, a participant may direct contributions into any of 19 investment options: Stable Income Fund, Baxter Common Stock Fund, Composite Fund, General Equity Fund, State Street Global Advisors S&P 500 Flagship Fund (SSgA S&P 500 Fund), State Street Global Advisors International EAFE Equity Index Fund (SSgA EAFE Equity Fund), State Street Global Advisors Small Cap Fund (SSgA Small Cap Fund), Northern Trust Domestic Mid Cap Fund, State Street Global Advisors Emerging Markets Fund (SSgA Emerging Markets Fund) and ten different Target Date Retirement Funds. However, non-matching contributions may not be invested in the Baxter Common Stock Fund. In addition, certain participants maintain shares in Edwards Lifesciences Corporation. These shares were placed into the Edwards Lifesciences Common Stock Fund in connection with Baxter’s 2000 spin-off of its cardiovascular business. Participants are not able to make contributions or transfer existing account balances to the Edwards Lifesciences Common Stock Fund, but may make transfers out of these funds at any time. Starting in 2013, participants are no longer able to make contributions to the Composite Fund and General Equity Fund, but may make transfers out of these funds at any time.

2.	Summary of Significant Accounting Policies

Basis of Accounting

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

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

Valuation of Investments and Collateral

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


Cash and cash equivalents		These largely consist of a short-term investment fund and a money market fund, the fair value of which is based on the net asset value. The investment objectives for these funds are to provide safety for principal, daily liquidity and a competitive yield by investing in high quality instruments.

Common stock		Value based on closing prices on the valuation date in an active market on national securities exchanges.

U.S. government and government agency issues		Value based on reputable pricing vendors that typically use pricing matrices or models.

Corporate and other obligations		Value based on reputable pricing vendors that typically use pricing matrices or models.

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012


Commingled funds		Value based on net asset values reported by the fund managers as of the Plan’s financial statement dates and recent transaction prices. The investment objectives of certain funds are to track the performances of the S&P 500, Europe, Australasia and the Far East (EAFE), or Russell 2000 indexes. In addition, these funds include target date retirement funds, whose objective is to provide investors, who have a specific date in mind for retirement with a portfolio of investments. The underlying investments for all funds vary, with some holding diversified portfolios of domestic stocks, government agency and corporate bonds, and others holding collective investment funds. Each fund provides for daily redemptions by the Plan at reported net asset values per share, with no advance notice requirement.

Registered investment companies		Value based upon the closing price from a national security exchange on the valuation date.

Synthetic guaranteed investment contracts		Value based on the fair value of the underlying securities in the contract on the valuation date plus the fair value of the wrapper contracts, which is calculated using a replacement cost approach. The underlying securities are valued based upon the methodologies described above. In addition, this investment in 2013 includes an individual separate account with Metropolitan Life Insurance Company (MetLife). The value of this separate account is based upon the unit value provided by MetLife as of the Plan’s financial statement date plus the fair value of the wrapper contracts, which is calculated using a replacement cost approach. The underlying securities primarily of the account, managed by a sub-advisor of the insurance company, consist of fixed income securities. See below for more information.

Collateral held on loaned securities		Value based upon the net asset value per unit of the short-term investment funds where the collateral is invested. Refer to Note 7 for more information on the securities lending program.

Collateral to be paid on loaned securities		Value based on the fair value of the underlying securities loaned on the valuation date, plus an incremental margin.

Income Recognition

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

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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

Synthetic Guaranteed Investment Contracts

The Plan holds synthetic guaranteed investment contracts (GICs) as part of the Stable Income Fund. The synthetic GICs provide for a fixed return on principal over a specified time through fully benefit-responsive contracts issued by Transamerica, Bank of America N.A. and MetLife. During 2013, certain assets underlying the synthetic GICs were transferred to an individual separate account with MetLife. The portfolio of assets underlying the synthetic GICs primarily includes cash and cash equivalents, U.S. government and government agency issues and corporate and other obligations.

The fair value of the synthetic GICs equals the total of the fair value of the underlying assets plus the fair value of the wrapper contracts. The fair value of the wrapper contracts is computed using a replacement cost approach that incorporates a comparison of the current fee rate on similar wrapper contracts to the fee being paid by the Plan. Using this approach, the fair value of the wrapper contracts were a loss of $4 thousand and a loss of $26 thousand at December 31, 2013 and 2012, respectively.

While Plan investments are presented at fair value in the Statement of Net Assets Available for Benefits, any material difference between the fair value of the Plan’s direct and indirect interests in fully benefit-responsive investment contracts and their contract value is presented as an adjustment line in the Statements of Net Assets Available for Benefits, because contract value is the relevant measurement attribute for that portion of the Plan’s net assets available for benefits. Contract value represents contributions, plus earnings, less participant withdrawals and administrative expenses. The wrapper contracts used by the Plan are fully benefit-responsive because the wrapper contract issuers are contractually obligated to make up any shortfall in the event that the underlying asset portfolio has been liquidated and is inadequate to cover participant withdrawals and transfers at contract value. There are currently no reserves against contract values for credit risk of the contract issuers or any other risk. The contract value for the synthetic GICs was $19.3 million and $18.4 million at December 31, 2013 and 2012, respectively.

The crediting interest rate, which is reset quarterly, can never fall below zero. The crediting rate formula smoothes the impact of interest rate changes on participant returns by amortizing any difference between market value and book value over a period of years equal to the duration of the portfolio benchmark. The average yield on the synthetic GICs was approximately 2.0% and 2.2% at December 31, 2013 and 2012, respectively. The average interest rate credited to participants on the synthetic GICs was approximately 2.7% and 3.4% for the years ended December 31, 2013 and 2012. The credit ratings for Transamerica were AA- at both December 31, 2013 and 2012, the credit ratings for Bank of America N.A. were A at both December 31, 2013 and 2012, and the credit rating for MetLife was AA- at December 31, 2013.

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

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

Notes Receivables from Participants

Participant loans are reported at their unpaid principal balance plus any accrued but unpaid interest, with no allowance for credit losses, as repayments of principal and interest are received through payroll deductions and the notes are collateralized by the participant’s account balances.

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

Payment of Benefits and Fees

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

Use of Estimates

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

Other

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

Risks and Uncertainties

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

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

3.	Eligibility Requirements

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

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

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

Puerto Rico employees who are not leased employees.

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

4.	Administration of the Plan

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

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

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

5.	Fair Value of Measurements

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

•

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

•

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

•

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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

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


				Basis of Fair Value Measurement
(in thousands)	Balance at December 31, 2013			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Cash and cash equivalents	$	672		$	—	$	672	$	—
Common stock:
Healthcare		8,165			8,165		—		—
Consumer products		936			936		—		—
Information technology		836			836		—		—
Financial services		334			334		—		—
Industrial services and materials		417			417		—		—
Energy		228			228		—		—
Other		68			68		—		—

Total common stock		10,984			10,984		—		—

U.S. government and government agency issues		418			—		418		—
Corporate and other obligations		511			—		511		—
Commingled funds:
SSgA S&P 500 fund		6,405			—		6,405		—
SSgA EAFE equity fund		2,298			—		2,298		—
SSgA Small cap fund		2,632			—		2,632		—
Target date retirement funds		4,124			—		4,124		—
Other		166			—		166		—

Total commingled funds		15,625			—		15,625		—

Synthetic guaranteed investment contracts:
Corporate and other obligations		6,438			—		6,438		—
U.S. government and government agency issues		8,666			—		8,666		—
Individual separate account		4,783					4,783
Cash and cash equivalents		446			—		446		—
Wrapper contracts		(4	)		—		—		(4	)

Total synthetic guaranteed investment contracts		20,329			—		20,333		(4	)

Collateral held on loaned securities		188			—		188		—

Total assets	$	48,727		$	10,984	$	37,747	$	(4	)

Liability
Collateral to be paid on loaned securities	$	188		$	26	$	162	$	—

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012


				Basis of Fair Value Measurement
(in thousands)	Balance at December 31, 2012			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Cash and cash equivalents	$	910		$	—	$	910	$	—
Common stock:
Healthcare		7,567			7,567		—		—
Consumer products		647			647		—		—
Information technology		727			727		—		—
Financial services		385			385		—		—
Industrial services and materials		377			377		—		—
Energy		179			179		—		—
Other		71			71		—		—

Total common stock		9,953			9,953		—		—

U.S. government and government agency issues		363			—		363		—
Corporate and other obligations		517			—		517		—
Commingled funds:
SSgA S&P 500 fund		4,414			—		4,414		—
SSgA EAFE equity fund		1,841			—		1,841		—
SSgA Small cap fund		1,631			—		1,631		—

Total commingled funds:		7,886			—		7,886		—
Registered investment companies:
Target date retirement funds		2,668			2,668		—		—
Other		35			35		—		—

Total registered investment companies		2,703			2,703		—		—

Synthetic guaranteed investment contracts:
Corporate and other obligations		11,489			—		11,489		—
U.S. government and government agency issues		7,640			—		7,640		—
Cash and cash equivalents		1,097			—		1,097		—
Wrapper contracts		(26	)		—		—		(26	)

Total synthetic guaranteed investment contracts		20,200			—		20,226		(26	)

Collateral held on loaned securities		242			—		242		—

Total assets	$	42,774		$	12,656	$	30,144	$	(26	)

Liability
Collateral to be paid on loaned securities	$	242		$	37	$	205	$	—

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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

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


(in thousands)	Wrapper Contracts
Balance at December 31, 2011	$	(8	)
Unrealized losses (relating to assets held at end of year)		(18	)

Balance at December 31, 2012		(26	)

Additions		1
Unrealized gains (relating to assets held at end of year)		21

Balance at December 31, 2013	$	(4	)

The unrealized losses from the wrapper contracts are excluded from the net appreciation reported for the Plan, but are instead reflected in the change in adjustment from fair value to contract value for fully benefit responsive contracts reported on the statements of net assets available for benefits. The additions are due to the new contract with MetLife as detailed in Note 2.

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

6.	Investments

Investments representing five percent or more of the Plan’s net assets available for benefits at December 31, 2013 and 2012 are summarized as follows:


(values in thousands, except per share)	2013		2012
Baxter common stock, 107,710 shares and 104,186 shares at December 31, 2013 and 2012, respectively	$	7,491	$	6,945
SSgA S&P 500 Fund		6,405		4,414
MetLife Individual Separate Account		4,783		*
SSgA Small Cap Fund		2,632		*

*	Does not meet 5% threshold

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

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


	2013			2012
(in thousands)
Cash (available for investment)	$	135		$	129
Stable Income Fund		20,738			20,874
Baxter Common Stock Fund		7,584			6,993
Composite Fund		2,132			1,984
General Equity Fund		2,263			1,908
SSgA S&P 500 Fund		6,405			4,414
SSgA EAFE Equity Fund		2,298			1,841
Edwards Lifesciences Common Stock Fund		62			90
SSgA Small Cap Fund		2,632			1,631
Northern Trust Domestic Mid Cap Fund		145			—
SSgA Emerging Markets Fund		21			—
Target Date Retirement Funds		4,124			2,668
Collateral held on loaned securities		188			242

Total investments at fair value		48,727			42,774
Adjustment from fair value to contract value for Stable Income Fund		(1,023	)		(1,785	)

Total investments	$	47,704		$	40,989

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


	2013			2012
(in thousands)
Baxter common stock	$	324		$	1,916
Other common stock		949			397
U.S. government and government agency issues		(22	)		—
Corporate and other obligations		(23	)		43
Commingled funds		3,316			1,157
Registered investment companies		—			193

	$	4,544		$	3,706

7.	Securities Lending Transactions

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

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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

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

As of December 31, 2013 and 2012, the Plan had securities on loan with a fair market of $184 thousand and $237 thousand, respectively, with cash collateral received of $188 thousand and $242 thousand, respectively, which was invested in the State Street Quality D Short-Term Investment Fund. Investments underlying this fund primarily consisted of cash and cash equivalents and asset-backed securities as of both December 31, 2013 and 2012, and the net asset value of this fund was approximately $1.00 per unit. As of December 31, 2013 and 2012 the cash collateral received is reflected at its fair value of $188 thousand and $242 thousand in the 2013 and 2012 Statements of Net Assets Available for Benefits, respectively.

Non-cash collateral of $23 thousand received for securities on loan at December 31, 2013, consisted of U.S. government and government agency issues, equity securities, and corporate and other obligations held by the Custodian on behalf of the Plan. Non-cash collateral is not included with the collateral balance on the 2013 Statement of Net Assets Available for Benefits because it may not be sold or repledged. A portion of the income generated upon investment of cash collateral is remitted to the Borrowers, and the remainder is allocated between the Plan and the Custodian in its capacity as a security agent. The Plan did not receive any non-cash collateral for securities on loan at December 31, 2012. Securities lending income allocated to the Plan amounted to $422 and $577 for 2013 and 2012, respectively. Securities lending income is classified as interest income in the Statements of Changes in Net Assets Available for Benefits.

8.	Plan Termination

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

9.	Tax Status of the Plan

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

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

10.

Related Parties

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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2013 and 2012

At December 31, 2013 and 2012, the Plan held units of participation in certain shares of common stock of State Street Corporation, commingled funds and short-term investment funds of State Street Bank and Trust Company, the Plan’s Custodian; shares of common stock and bonds of Baxter, the Plan sponsor’s parent; loans with participants; units of registered investment companies managed by Pacific Investment Management Company, an investment manager for the Plan; shares of common stock, bonds, and interest rate wrapper contracts of Bank of America, issuer of the Plan’s fully benefit-responsive contracts; interest rate wrapper contracts of Transamerica, issuer of the Plan’s fully benefit-responsive contracts; and shares of common stock, bonds, an individual separate account and interest rate wrapper contracts of MetLife, issuer of the Plan’s fully benefit-responsive contracts; and units of commingled funds managed by Northern Trust Corporation, an investment manager for the Plan. These transactions are allowable party-in-interest transactions under ERISA and the regulations promulgated thereunder.

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

11.

Subsequent Event

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

SUPPLEMENTAL SCHEDULE

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Cash and Cash Equivalents:
	Australian Dollar	Currency		—	$	5
*	State Street Bank & Trust Co	Short-Term Investment Fund		—		672,190

	Cash and cash equivalents			—	$	672,195


**	Common Stock:

	Abbott Laboratories	Common Stock		—		30,542
	Ace Ltd	Common Stock		—		17,403
	Adobe Systems Inc	Common Stock		—		24,344
	Aes Corp	Common Stock		—		9,811
	Agilent Technologies Inc	Common Stock		—		8,681
	Alcoa Inc	Common Stock		—		7,868
	Alexion Pharmaceuticals Inc	Common Stock		—		41,024
	Allergan Inc	Common Stock		—		44,098
	Allergan Inc	Common Stock		—		10,312
	Amazon.Com Inc	Common Stock		—		90,730
	American Intl Group	Common Stock		—		9,798
	American Tower Corp	Common Stock		—		23,806
	Aon Plc	Common Stock		—		8,735
	Apple Inc	Common Stock		—		112,033
	Applied Materials Inc	Common Stock		—		7,878
	ARM Holdings Plc	Common Stock		—		22,954
	Baker Hughes Inc	Common Stock		—		6,863
*	Bank of America	Common Stock		—		18,106
*	Bank of America	Common Stock		—		9,610
*	Baxter International Inc	Common Stock		—		7,491,232
	BCE Inc	Common Stock		—		11,649
	Biogen Idec Inc	Common Stock		—		56,933
	Boeing Co	Common Stock		—		46,080
	Boeing Co	Common Stock		—		13,698
	BP Plc	Common Stock		—		10,489
	Bristol Myers Squibb Co	Common Stock		—		49,377
	Cameron International Corp	Common Stock		—		7,505
	Canadian Pacific Railway Ltd	Common Stock		—		28,575
	Capital One	Common Stock		—		9,899
	Capital One	Common Stock		—		18,885
	Cardinal Health Inc	Common Stock		—		7,794
	Celgene Corp	Common Stock		—		24,335
	Chipotle Mexican Grill Inc	Common Stock		—		24,703
	Cisco Systems Inc	Common Stock		—		12,856
	CIT Group Inc	Common Stock		—		9,809
	Citigroup Inc	Common Stock		—		9,740
	Citigroup Inc	Common Stock		—		18,337
	Citrix Systems Inc	Common Stock		—		10,077
	Coca Cola Co	Common Stock		—		11,582
	Comcast Corp	Common Stock		—		7,888

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Concho Resources Inc	Common Stock		—		25,372
	Costco Wholesale Corp	Common Stock		—		45,452
	Covidien Plc	Common Stock		—		10,807
	CVS Caremark Corp	Common Stock		—		13,288
	CVS Caremark Corp	Common Stock		—		9,697
	Diageo Plc	Common Stock		—		19,818
	DirectTV	Common Stock		—		9,881
	Discovery Communications	Common Stock		—		35,135
	Dollar General Corp	Common Stock		—		12,334
	Du Pont E I De Nemours & Co	Common Stock		—		9,943
	Dunkin Brands Group Inc	Common Stock		—		27,505
	Ebay Inc	Common Stock		—		21,126
	Edwards Lifesciences Corp	Common Stock		—		61,675
	Encana Corp	Common Stock		—		6,827
	EOG Resources Inc	Common Stock		—		28,298
	Estee Lauder Companies	Common Stock		—		35,659
	Exelon Corp	Common Stock		—		11,476
	Express Scripts Holding Co	Common Stock		—		32,350
	Exxon Mobil Corp	Common Stock		—		29,199
	Facebook Inc	Common Stock		—		48,263
	Fireeye Inc	Common Stock		—		5,120
	Flextronics Intl Ltd	Common Stock		—		7,544
	FMC Technologies Inc	Common Stock		—		12,042
	Ford Motor Co	Common Stock		—		15,960
	General Electric Co	Common Stock		—		29,572
	General Electric Co	Common Stock		—		9,740
	Gilead Sciences Inc	Common Stock		—		42,690
	Goldman Sachs Group	Common Stock		—		40,825
	Google Inc	Common Stock		—		102,561
	Google Inc	Common Stock		—		9,138
	Halliburton Co	Common Stock		—		15,534
	Hess Corp	Common Stock		—		9,683
	Honeywell International Inc	Common Stock		—		15,531
	Hospira Inc	Common Stock		—		6,784
	Illumina Inc	Common Stock		—		6,965
	Inditex Unspon Adr	Common Stock		—		49,927
	Invesco Ltd	Common Stock		—		9,315
	Johnson & Johnson	Common Stock		—		10,800
	Johnson Controls Inc	Common Stock		—		15,863
	JP Morgan Chase & Co	Common Stock		—		15,699
	Kansas City Southern	Common Stock		—		11,921
	Kohl’s Corp	Common Stock		—		7,902
	Linkedin Corp	Common Stock		—		42,534
	Lowe’s Companies, Inc	Common Stock		—		7,708
	Marathon Oil Corp	Common Stock		—		14,215
	Marsh & McLennan Cos	Common Stock		—		8,797
	Mastercard Inc	Common Stock		—		101,149
	McDonald’s Corp	Common Stock		—		9,190
	McKesson Corp	Common Stock		—		6,935

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Merck & Co. Inc	Common Stock		—		14,492
	Michael Kors Holdings Ltd	Common Stock		—		23,446
	Microsoft Corp	Common Stock		—		9,344
	Mondelez International Inc	Common Stock		—		38,139
	Monsanto Co	Common Stock		—		59,651
	Monsanto Co	Common Stock		—		16,522
	Morgan Stanley	Common Stock		—		31,136
	Mosaic Co	Common Stock		—		6,197
	Netapp Inc	Common Stock		—		7,612
	Netflix Inc	Common Stock		—		26,871
	Nike Inc	Common Stock		—		49,702
	Novartis AG	Common Stock		—		14,117
	Novartis AG	Common Stock		—		9,176
	Novo Nordisk	Common Stock		—		39,894
	Oracle Corp	Common Stock		—		15,623
	Owens Illinois Inc	Common Stock		—		4,444
	Owens Illinois Inc	Common Stock		—		7,002
	Perrigo Co Plc	Common Stock		—		26,043
	Pfizer Inc	Common Stock		—		26,513
	PNC Financial Services Group	Common Stock		—		17,518
	Precision Castparts Corp	Common Stock		—		49,786
	Priceline.Com Inc	Common Stock		—		65,153
	Procter & Gamble Co	Common Stock		—		6,945
	Qualcomm Inc	Common Stock		—		11,643
	Ralph Lauren Corp	Common Stock		—		22,937
	Red Hat Inc	Common Stock		—		32,811
	Republic Services Inc	Common Stock		—		4,331
	Rolls Royce Holdings	Common Stock		—		14,353
	Salesforce.com Inc	Common Stock		—		40,952
	Sanofi SA	Common Stock		—		8,881
	Schlumberger Ltd	Common Stock		—		33,707
	Schlumberger Ltd	Common Stock		—		9,156
	Charles Schwab Corp	Common Stock		—		7,045
	Southwest Airlines	Common Stock		—		7,776
	Southwestern Energy Co	Common Stock		—		9,572
	Splunk Inc	Common Stock		—		25,321
	Sprouts Farmers Market Inc	Common Stock		—		5,309
	Starbucks Corp	Common Stock		—		27,219
	Swatch Group AG	Common Stock		—		24,735
	Symantec Corp	Common Stock		—		8,504
	Tableau Software Inc	Common Stock		—		4,880
	Teradata Corp	Common Stock		—		2,910
	Tesla Motors Inc	Common Stock		—		19,253
	Texas Instruments Inc	Common Stock		—		17,544
	Texas Instruments Inc	Common Stock		—		9,860
	Thermo Fisher Scientific Inc	Common Stock		—		9,918
	Time Warner Inc	Common Stock		—		18,261
	Time Warner Inc	Common Stock		—		7,872
	TJX Companies Inc	Common Stock		—		55,967

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


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

	Common Stock			—	$	10,984,399


**	U.S. Government and Government Agency Issues:

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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


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

	U.S. Government and Government Agency Issues			—	$	417,726


**	Corporate and Other Obligations:

	Alcoa Inc	5.87% 23 Feb 2022		—		4,443
	American Axle & Mfg Inc	5.125% 15 Feb 2019		—		476
	American Tower Corp	4.625% 01 Apr 2015		—		1,995

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	American Tower Corp	4.5% 15 Jan 2018		—		2,979
	Americredit Automobile Receivables	1.19% 08 May 2018		—		1,320
	Americredit Automobile Receivables	1.79% 08 Mar 2019		—		1,051
	Amphenol Corp	4.75% 15 Nov 2014		—		4,379
	Anadarko Petroleum Corp	6.375% 15 Sep 2017		—		5,626
	Arcelormittal	7.25% 01 Mar 2041		—		4,743
	Associates Corp NA	6.95% 01 Nov 2018		—		2,364
	Audatex North America Inc	6.0% 15 Jun 2021		—		5,480
	Avon Products Inc	4.6% 15 Mar 2020		—		657
	Banc of America Commercial Mortgage	1.0% 10 Apr 2049		—		2,201
	Banco Santander Bras Ci	4.625% 13 Feb 2017		—		5,509
	Banco Santander Chile	3.875% 20 Sep 2022		—		2,498
*	Bank of America	6.4% 28 Aug 2017		—		2,748
*	Bank of America	5.625% 01 Jul 2020		—		5,978
*	Bank of America	5.0% 13 May 2021		—		1,954
	BBVA Banco Continental	3.25% 08 Apr 2018		—		3,774
	Bear Stearns Commercial Mortgage	1.0% 11 Jun 2040		—		2,599
	Braskem America Finance	7.125% 22 Jul 2041		—		3,955
	Brocade Communications	6.875% 15 Jan 2020		—		639
	Bunge Limited Finance Co	4.1% 15 Mar 2016		—		1,049
	CBRE Services Inc	5.0% 15 Mar 2023		—		2,355
	CCO Hldgs LLC/Cap Corp	6.5% 30 Apr 2021		—		1,429
	CCO Hldgs LLC/Cap Corp	5.25% 15 Mar 2021		—		2,972
	CD Commercial Mortgage Trust	5.322% 11 Dec 2049		—		6,671
	Celulosa Arauco	5.0% 21 Jan 2021		—		3,007
	Centurylink Inc	5.625% 01 Apr 2020		—		1,145
	Chesapeake Energy Corp	3.25% 15 Mar 2016		—		2,742
	Cielo Sa/Cielo Usa Inc	3.75% 16 Nov 2022		—		4,715
	Citigroup Inc	4.45% 10 Jan 2017		—		4,665
	Citigroup Inc	4.05% 30 Jul 2022		—		2,161
	Citigroup Inc	1.3% 01 Apr 2016		—		2,987
	CNOOC Finance	4.25% 09 May 2043		—		2,232
	CNPC General Capital	3.95% 19 Apr 2022		—		2,557
	Comcast Corp	5.65% 15 Jun 2035		—		1,284
	Comm Mortgage Trust	1.0% 10 Dec 2049		—		747
	Continental Resources	4.5% 15 Apr 2023		—		738
	Contl Airlines	4.0% 29 Apr 2026		—		2,240
	Contl Airlines	5.983% 19 Oct 2023		—		3,733
	Cox Communications Inc	5.45% 15 Dec 2014		—		415
	Credit Suisse Mortgage Trust	1.0% 15 Jan 2049		—		4,662
	Crown Castle Towers LLC	3.214% 15 Aug 2035		—		1,350
	Delhaize Group	4.125% 10 Apr 2019		—		4,289
	Deluxe Corp	6.0% 15 Nov 2020		—		7,452
	Dolphin Energy Ltd	5.5% 15 Dec 2021		—		2,894
	Dun & Bradstreet Corp	3.25% 01 Dec 2017		—		1,874
	Ecopetrol SA	5.875% 18 Sep 2023		—		629
	Ecopetrol SA	7.375% 18 Sep 2043		—		2,441
	Embarq Corp	7.995% 01 Jun 2036		—		8,447
	Energy Transfer Partners	6.05% 01 Jun 2041		—		5,837

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


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

	Corporate and Other Obligations			—	$	511,173


Synthetic Guaranteed Investment Contracts:

	Cash & Cash Equivalents
*	State Street Bank & Trust Co	Short-Term Investment Fund		—		121,584
*	State Street Bank & Trust Co	Short-Term Investment Fund		—		251,201
*	State Street Bank & Trust Co	Short-Term Investment Fund		—		72,851

				—		445,636

	U.S. Government and Government Agency Issues

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

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	FNMA Conv 15Yr TBA	5.0% 01 Aug 2024		—		54,555
	FNMA Pool 254693	2.42% 01 Apr 2017		—		4,867
	FNMA Pool 725222	4.6% 26 May 2015		—		6,347
	FNMA Pool 725423	1.0% 25 Jul 2025		—		4,726
	FNMA Pool 725424	4.0% 07 Oct 2019		—		2,172
	FNMA Pool 725690	3.0% 01 Mar 2027		—		1,957
	FNMA Pool 725946	3.375% 15 Apr 2023		—		5,745
	FNMA Pool 735141	6.375% 15 Jul 2019		—		0
	FNMA Pool 735667	3.0% 01 Apr 2027		—		38,678
	FNMA Pool 735676	3.0% 01 May 2027		—		10,956
	FNMA Pool 743132	4.0% 01 Sep 2041		—		11,749
	FNMA Pool 745275	3.5% 01 Sep 2042		—		33,691
	FNMA Pool 745327	3.875% 16 Jul 2015		—		0
	FNMA Pool 756363	1.0% 31 Mar 2030		—		3,287
	FNMA Pool 770946	1.0% 29 Sep 2014		—		8,209
	FNMA Pool 776971	4.0% 01 Dec 2099		—		8,565
	FNMA Pool 831540	3.5% 01 Dec 2099		—		10,931
	FNMA Pool 844444	2.995% 01 Jul 2020		—		14,026
	FNMA Pool 888340	2.5% 01 Dec 2099		—		9,882
	FNMA Pool 888521	5.0% 01 Jul 2031		—		5,793
	FNMA Pool 889004	5.0% 01 Feb 2043		—		8,337
	FNMA Pool 889361	4.5% 20 Jan 2022		—		0
	FNMA Pool 914789	5.5% 01 Apr 2033		—		26,874
	FNMA Pool 931745	5.5% 01 Feb 2034		—		47,471
	FNMA Pool 986148	5.5% 01 May 2034		—		34,560
	FNMA Pool AD8529	0.10% 06 Feb 2014		—		12,539
	FNMA Pool AK2989	5.5% 01 Aug 2022		—		35,481
	FNMA Pool AL0139	3.0% 01 Oct 2026		—		15,021
	FNMA Pool AL2891	0.01% 14 Jan 2014		—		51,230
	FNMA Pool AO5515	3.0% 01 Apr 2027		—		10,639
	FNMA Pool AQ5046	0.01% 20 Jan 2014		—		971
	FNMA Pool AR6071	5.0% 15 Nov 2038		—		634
	FNMA TBA 30Yr Single Family	4.5% 01 Aug 2040		—		134,014
	FNMA TBA Single Family Mortgage	3.0% 01 May 2027		—		29,412
	Freddie Mac	1.5% 31 Dec 2018		—		112,102
	Illinois St	0.25% 31 Aug 2014		—		37,596
	Japan Treasury Disc Bill	2.75% 15 Nov 2023		—		48,727
	Japan Treasury Disc Bill	0.625% 15 Nov 2016		—		41,033
	Met Transprtn Auth NY	0.125% 15 Apr 2016		—		14,267
	North Carolina State Education	6.0% 01 Aug 2034		—		38,997
	Province of Ontario	0.125% 30 Apr 2015		—		55,880
	Province of Quebec	1.75% 31 Oct 2020		—		33,962
	Republic Of Indonesia	0.1% 20 Mar 2014		—		6,227
	Republic Of Poland	5.0% 01 Nov 2039		—		1,260
	Republic Of Poland	1.25% 30 Nov 2018		—		12,155
	Russia Foreign Bond	3.625% 15 Feb 2020		—		4,914
	Sacramento City	2.5% 30 Apr 2015		—		13,752
	San Antonio Tx Elec Gas Reve	1.875% 30 Jun 2015		—		13,576
	State of Qatar	1.875% 30 Apr 2014		—		7,989

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Treasury Bill	5.5% 01 Nov 2034		—		103,092
	Treasury Bill	1.5% 31 Aug 2018		—		1,047,065
	Tsy Infl Ix N/B	0.25% 15 Oct 2015		—		106,643
	Univ Of Massachusetts Ma Bldg Umafac	2.5% 15 Aug 2023		—		13,872
	US Treasury N/B	5.5% 01 Jan 2035		—		45,634
	US Treasury N/B	5.0% 01 Jul 2035		—		158,457
	US Treasury N/B	5.0% 01 Jul 2035		—		106,207
	US Treasury N/B	5.0% 01 Oct 2018		—		200,908
	US Treasury N/B	5.0% 01 Feb 2036		—		53,007
	US Treasury N/B	6.0% 01 Mar 2036		—		42,239
	US Treasury N/B	1.0% 01 Dec 2033		—		168,146
	US Treasury N/B	5.0% 01 Apr 2034		—		9,944
	US Treasury N/B	5.0% 01 Apr 2034		—		86,279
	US Treasury N/B	6.0% 01 Jun 2036		—		33,745
	US Treasury N/B	5.0% 01 Dec 2035		—		127,008
	US Treasury N/B	5.0% 01 Aug 2036		—		61,346
	US Treasury N/B	1.0% 01 Mar 2034		—		52,452
	US Treasury N/B	1.0% 01 Aug 2037		—		213,812
	US Treasury N/B	6.0% 01 Mar 2038		—		41,137
	US Treasury N/B	5.0% 01 Apr 2037		—		51,058
	US Treasury N/B	1.375% 30 Sep 2018		—		524,898
	US Treasury N/B	0.875% 4/30/20 17		—		75,158
	US Treasury N/B	0.75% 31 Oct 2017		—		68,835
	US Treasury N/B	1.625% 15 Nov 2022		—		539,158
	US Treasury N/B	1.75% 15 May 2023		—		157,098
	US Treasury N/B	0.25% 31 May 2015		—		38,531
	US Treasury N/B	6.5% 15 Nov 2026		—		1,620
	US Treasury N/B	2.125% 31 May 2015		—		1,007,954
	US Treasury N/B	1.75% 31 May 2016		—		266,961
	US Treasury N/B	0.25% 31 Jan 2014		—		873,748
	US Treasury N/B	1.375% 31 Jul 2018		—		400,425

					$	8,665,522


	Corporate and Other Obligations

	21st Century Fox America Company	4.5% 15 Feb 2021		—		11,124
	ABN AMRO Bank N.V.	2.5% 30 Oct 2018		—		13,120
	ABN AMRO Bank N.V.	4.25% 02 Feb 2017		—		11,559
	ABN AMRO Bank N.V.	2.5% 30 Oct 2018		—		14,727
	Ace Ina Holdings Company	5.6% 15 May 2015		—		5,319
	Agilent Technologies Inc	6.5% 01 Nov 2017		—		15,768
	Alcoa Inc	6.75% 15 Jul 2018		—		12,909
	Allegheny Technologies	5.87% 15 Aug 2023		—		14,973
	Allegheny Technologies	5.95% 15 Jan 2021		—		3,356
	Allied World Assurance	7.5% 01 Aug 2016		—		5,106
	Ally Auto Receivables Trust	0.72% 20 May 2016		—		21,088
	Ally Master Owner Trust	1.54% 15 Sep 2019		—		33,587
	Ally Master Owner Trust	1.0% 15 Feb 2018		—		13,761

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Ally Master Owner Trust	1.0% 15 Feb 2018		—		19,293
	Altria Group Inc	4.75% 05 May 2021		—		24,588
	Amazon.Com Inc	0.65% 27 Nov 2015		—		27,212
	America Movil	3.625% 30 Mar 2015		—		19,899
	American Express	0.59% 15 May 2018		—		16,031
	American Express	0.68% 15 Mar 2018		—		29,029
	American Intl Group	4.875% 15 Sep 2016		—		15,543
	American Intl Group	5.45% 18 May 2017		—		12,051
	American Intl Group	3.8% 22 Mar 2017		—		6,045
	American Intl Group	4.875% 01 Jun 2022		—		8,692
	American Intl Group	6.4% 15 Dec 2020		—		27,078
	American Tower Corp	5.05% 01 Sep 2020		—		10,974
	Americredit Automobile Receivables	0.96% 09 Jan 2017		—		16,095
	Americredit Automobile Receivables	0.49% 08 Apr 2016		—		6,667
	Americredit Automobile Receivables	0.92% 09 Apr 2018		—		18,194
	Americredit Automobile Receivables	0.96% 09 Apr 2018		—		7,559
	Americredit Automobile Receivables	1.55% 08 Jul 2016		—		19,476
	Anadarko Petroleum Corp	6.375% 15 Sep 2017		—		24,757
	Aon Plc	3.5% 30 Sep 2015		—		13,644
	Apple Inc	1.0% 03 May 2018		—		10,295
	Asciano Finance	3.125% 23 Sep 2015		—		13,369
	AT&T Inc	5.8% 15 Feb 2019		—		12,669
	AT&T Inc	1.0% 27 Nov 2018		—		20,642
	Baidu Inc	2.25% 28 Nov 2017		—		5,434
	Baidu Inc	3.25% 06 Aug 2018		—		8,038
*	Bank of America	6.4% 28 Aug 2017		—		27,037
*	Bank of America	6.875% 25 Apr 2018		—		6,852
*	Bank of America	6.0% 01 Sep 2017		—		20,774
*	Bank of America	1.0% 15 Jan 2019		—		25,672
*	Bank of America	5.65% 01 May 2018		—		4,142
*	Bank of America	7.625% 01 Aug 2019		—		5,684
*	Bank of America	5.625% 01 Jul 2020		—		26,028
*	Bank of America	5.7% 24 Jan 2022		—		1,068
*	Bank of America	3.875% 22 Mar 2017		—		3,452
*	Bank of America	5.42% 15 Mar 2017		—		8,890
*	Bank of America	5.49% 15 Mar 2019		—		26,856
*	Bank of America	6.1% 15 Jun 2017		—		9,726
*	Bank of America	3.75% 12 Jul 2016		—		12,752
*	Bank of America	2.6% 15 Jan 2019		—		8,393
*	Bank of America	6.05% 18 May 2016		—		12,011
*	Bank of America	6.875% 25 Apr 2018		—		4,781
*	Bank of America	1.03% 15 Dec 2016		—		10,729
	Barclays Bank	5.125% 08 Jan 2020		—		11,208
	Barrick NA Finance LLC	4.4% 30 May 2021		—		21,022
	Barrick NA Finance LLC	4.4% 30 May 2021		—		4,905
*	Baxter International Inc	1.85% 15 Jan 2017		—		5,994
	BBVA US	4.664% 09 Oct 2015		—		26,495
	Bear Stearns Commercial Mortgage	1.0% 11 Jun 2040		—		30,682
	Bear Stearns Commercial Mortgage	1.0% 11 Sep 2038		—		7,513

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Bear Stearns Commercial Mortgage	1.0% 11 Sep 2038		—		1,578
	Bear Stearns Commercial Mortgage	5.533% 12 Oct 2041		—		175
	Bear Stearns Commercial Mortgage	1.0% 12 Jan 2045		—		21,951
	Bear Stearns Cos LLC	7.25% 01 Feb 2018		—		24,368
	Berkshire Hathaway Fin	1.6% 15 May 2017		—		18,370
	BNP Paribas	2.4% 12 Dec 2018		—		25,528
	Boston Properties L P	3.7% 15 Nov 2018		—		7,535
	BP Capital Markets Plc	1.846% 05 May 2017		—		25,864
	BP Capital Markets Plc	4.5% 01 Oct 2020		—		13,105
	BP Capital Markets Plc	1.375% 06 Nov 2017		—		10,087
	BPCE SA	5.7% 22 Oct 2023		—		7,349
	British Telecom Plc	1.625% 28 Jun 2016		—		11,421
	British Telecom Plc	1.625% 28 Jun 2016		—		13,324
	Bunge Limited Finance Co	8.5% 15 Aug 2019		—		8,312
	Burlingtn North Santa Fe	5.75% 15 Mar 2018		—		8,297
	Canadian National Railways Co	1.45% 15 Dec 2018		—		25,789
	Capital Auto Receivables	0.79% 20 Jun 2017		—		12,511
	Capital One	5.25% 21 Feb 2017		—		11,075
	Capital One	1.0% 15 Mar 2017		—		15,506
	Capital One	1.5% 22 Mar 2018		—		36,698
	Carmax Auto Owner Trust	0.84% 15 Mar 2017		—		43,691
	Carmax Auto Owner Trust	0.89% 15 Sep 2016		—		11,847
	Carmax Auto Owner Trust	1.41% 16 Feb 2016		—		21,430
	Caterpillar Financial	1.0% 25 Nov 2018		—		26,397
	CBS Corp	8.875% 15 May 2019		—		5,859
	CBS Corp	5.75% 15 Apr 2020		—		7,716
	CD Commercial Mortgage Trust	5.322% 28 Jun 2016		—		41,326
	Cellco Part/Veri Wirelss	8.5% 15 Nov 2018		—		11,604
	Centerpoint Energy Resources	4.5% 15 Jan 2021		—		2,875
	CF Industries Inc	7.125% 01 May 2020		—		24,960
	Chase	1.3% 18 Feb 2020		—		12,437
	CIT Equipment Collateral	1.1% 22 Aug 2016		—		5,017
	CIT Equipment Collateral	1.13% 20 Jul 2020		—		12,690
	Citifinancial Mortgage	1.0% 25 Jan 2033		—		1,536
	Citigroup Commercial Mortgage	1.0% 10 Dec 2049		—		12,058
	Citigroup Commercial Mortgage	5.431% 15 Oct 2045		—		6,764
	Citigroup Commercial Mortgage	1.0% 15 Mar 2049		—		7,834
	Citigroup Inc	5.375% 09 Aug 2020		—		13,186
	Citigroup Inc	4.5% 14 Jan 2022		—		13,283
	Citigroup Inc	6.01% 15 Jan 2015		—		16,350
	Citigroup Inc	5.375% 09 Aug 2020		—		12,143
	Citigroup Inc	4.5% 14 Jan 2022		—		21,081
	Cleveland Electric	5.7% 01 Apr 2017		—		6,074
	CNH Equipment Trust	0.63% 17 Jan 2017		—		10,409
	CNH Equipment Trust	0.49% 15 Mar 2017		—		12,735
	CNH Equipment Trust	0.94% 15 May 2017		—		7,451
	CNH Equipment Trust	1.74% 17 Jan 2017		—		13,501
	Coca Cola Co	3.3% 01 Sep 2021		—		37,797
	Coca Cola Co	3.2% 01 Nov 2023		—		25,926

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Comcast Corp	5.15% 01 Mar 2020		—		9,171
	Comcast Corp	4.95% 15 Jun 2016		—		4,856
	Comcast Corp	6.5% 15 Jan 2017		—		5,404
	Comm Mortgage Trust	3.147% 15 Aug 2045		—		6,378
	Comm Mortgage Trust	1.0% 10 Jul 2045		—		26,806
	Comm Mortgage Trust	1.0% 10 Oct 2046		—		22,670
	Comm Mortgage Trust	1.8726% 12 Apr 2035		—		6,508
	Comm Mortgage Trust	3.689% 10 Aug 2046		—		25,403
	Conagra Foods Inc	1.9% 25 Jan 2018		—		28,578
	Cons Edison Co	5.3% 01 Dec 2016		—		24,122
	Constellation Energy	5.15% 01 Dec 2020		—		2,495
	Consumers Energy	6.12% 15 Mar 2019		—		8,744
	Countrywide Finl Corp	6.25% 15 May 2016		—		2,171
	Coventry Health Care Inc	6.125%1/15/2015		—		854
	Coventry Health Care Inc	5.95%3/15/2017		—		2,590
	Coventry Health Care Inc	6.3%8/15/2014		—		7,254
	Cox Communications Inc	6.2% 01 Jun 2018		—		24,903
	Crane Co	2.75% 15 Dec 2018		—		4,292
	Credit Based Asset Servicing	1.0% 25 Jan 2033		—		3,254
	Credit Suisse	6.5% 08 Aug 2023		—		7,857
	Credit Suisse	5.3% 13 Aug 2019		—		27,232
	Credit Suisse Mortgage Trust	1.0% 15 Jun 2038		—		16,538
	Credit Suisse Mortgage Trust	5.467% 15 Sep 2039		—		0
	CS First Boston Mortgage	1.0% 15 Feb 2038		—		7,446
	CVS Caremark Corp	2.25% 05 Dec 2018		—		28,968
	Daimler Finance NA LLC	1.25% 11 Jan 2016		—		23,602
	Delta Air Lines	7.75% 17 Jun 2021		—		15,622
	Diageo Capital Plc	7.375% 15 Jan 2014		—		8,376
	DirecTV Holdings LLC	4.75% 01 Oct 2014		—		4,025
	DirecTV Holdings LLC	4.6% 15 Feb 2021		—		6,959
	DirecTV Holdings LLC	3.8% 15 Mar 2022		—		6,215
	Discover Bank	7.0% 15 Apr 2020		—		12,539
	Discover Card	0.81% 15 Aug 2017		—		8,385
	Discover Card	1.04% 15 Apr 2019		—		17,358
	Discover Card	0.86% 15 Nov 2017		—		7,334
	Dominion Resources Inc	1.95% 15 Aug 2016		—		25,757
	Dow Chemical Co	8.55% 15 May 2019		—		8,318
	Dow Chemical Co	4.125% 15 Nov 2021		—		8,910
	Dryrock	0.64% 15 Aug 2018		—		15,899
	Duke Energy Indiana Inc	1.0% 11 Jul 2016		—		7,152
	Duke Realty LP	8.25% 15 Aug 2019		—		2,002
	Enel Finance Intl NV	6.25% 15 Sep 2017		—		18,815
	Energy Transfer Partners	4.65% 01 Jun 2021		—		9,289
	Energy Transfer Partners	6.7% 01 Jul 2018		—		15,398
	Energy Transfer Partners	4.15% 01 Oct 2020		—		25,297
	Enterprise Products	5.2% 01 Sep 2020		—		7,646
	Enterprise Products	3.35% 15 Mar 2023		—		8,834
	Enterprise Products Oper	1.25% 13 Aug 2015		—		26,727
	Erac USA Finance LLC	2.25% 10 Jan 2014		—		25,750

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Ericsson	4.125% 15 May 2022		—		13,100
	ERP Operating LP	5.25% 15 Sep 2014		—		11,542
	Eurasian Development	5.0% 28 Sep 2020		—		12,479
	Exelon Generation Co LLC	4.0% 01 Oct 2020		—		11,317
	Extended Stay America Trust	1.0% 05 Dec 2031		—		7,154
	Extended Stay America Trust	2.2952% 05 Dec 2031		—		9,154
	Federal Realty Invs Trst	5.65% 01 Jun 2016		—		8,302
	FHLMC Multifamily Structured	3.23% 25 Jul 2021		—		101,669
	FHLMC Multifamily Structured	2.412% 25 Aug 2018		—		8,378
	FHLMC Multifamily Structured	2.13% 25 Jan 2019		—		17,986
	FHLMC Multifamily Structured	2.086% 25 Mar 2019		—		24,970
	FHLMC Multifamily Structured	1.883% 25 May 2019		—		86,932
	FHLMC Multifamily Structured	1.0% 25 Feb 2023		—		34,391
	FHLMC Multifamily Structured	2.917% 25 Aug 2020		—		14,941
	FHLMC Multifamily Structured	1.603% 25 Jan 2022		—		23,277
	FHLMC Multifamily Structured	2.615% 25 Mar 2023		—		16,208
	Fifth Third Auto Trust	0.61% 15 Sep 2017		—		10,830
	Fifth Third Bancorp	3.5% 15 Mar 2022		—		4,968
	First National	1.0% 15 Oct 2019		—		9,434
	Ford Credit	1.0% 15 Jan 2016		—		26,957
	Ford Credit	4.2% 15 Feb 2017		—		36,451
	Ford Credit Auto Lease Trust	0.54% 15 Nov 2014		—		5,610
	Ford Credit Auto Owner Trust	1.0% 15 Sep 2017		—		8,813
	Ford Credit Floorplan Master	0.85% 15 Jan 2018		—		8,301
	Ford Motor Credit Co LLC	8.125% 15 Jan 2020		—		42,806
	Ford Motor Credit Co LLC	5.875% 02 Aug 2021		—		23,072
	Ford Motor Credit Co LLC	5.875% 02 Aug 2021		—		27,503
	Freeport McMoran	2.375% 15 Mar 2018		—		6,884
	Freeport Mcmoran	2.15% 01 Mar 2017		—		12,616
	Gazprom (Gaz Capital SA)	6.212% 22 Nov 2016		—		9,094
	GCCFC Commercial Mortgage	5.444% 10 Mar 2039		—		33,458
	GCCFC Commercial Mortgage	5.444% 10 Mar 2039		—		23,388
	GDF Suez	1.625% 10 Oct 2017		—		4,749
	General Elec Cap Corp	1.76% 15 Sep 2022		—		37,042
	GE Equipment	1.0% 24 Aug 2015		—		2,769
	General Elec Cap Corp	5.5% 08 Jan 2020		—		33,955
	General Elec Cap Corp	4.65% 17 Oct 2021		—		5,726
	Genworth Holdings Inc	7.7% 15 Jun 2020		—		7,863
	Genworth Holdings Inc	7.2% 15 Feb 2021		—		24,101
	Gerdau Trade Inc	5.75% 30 Jan 2021		—		2,804
	Gerdau Trade Inc	4.75% 15 Apr 2023		—		10,331
	Glaxosmithkline Capital Company	1.5% 5/08/20 17		—		24,810
	Glencore Funding LLC	4.125% 30 May 2023		—		8,439
	Goldman Sachs Group	6.25% 01 Sep 2017		—		23,299
	Goldman Sachs Group	7.5% 15 Feb 2019		—		13,132
	Goldman Sachs Group	6.0% 15 Jun 2020		—		9,581
	Goldman Sachs Group	5.75% 24 Jan 2022		—		9,861
	Goldman Sachs Group	1.0% 29 Nov 2023		—		24,778
	Goldman Sachs Group	5.25% 27 Jul 2021		—		21,838

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Goldman Sachs Group	5.75% 24 Jan 2022		—		14,109
	GS Mortgage Securities Trust	1.0% 11 Aug 2029		—		80,267
	GS Mortgage Securities Trust	1.0% 10 Jul 2026		—		23,616
	GS Mortgage Securities Trust	4.751% 10 Jul 2039		—		20,672
	GS Mortgage Securities Trust	1.0% 11 Aug 2029		—		14,228
	GS Mortgage Securities Trust	1.0% 10 Aug 2038		—		7,699
	Harley Davidson Motorcycle	0.68% 15 Apr 2017		—		10,116
	Hartford Finl Svcs Grp	4.0% 30 Mar 2015		—		2,240
	Hartford Finl Svcs Grp	5.5% 30 Mar 2020		—		7,241
	Hartford Finl Svcs Grp	5.125% 15 Apr 2022		—		5,872
	HCP Inc	5.375% 01 Feb 2021		—		15,053
	Health Care Reit Inc	5.25% 15 Jan 2022		—		14,649
	Health Care Reit Inc	2.25% 15 Mar 2018		—		10,127
	Healthcare Realty Trust	3.75% 15 Apr 2023		—		1,995
	Hess Corp	8.125% 15 Feb 2019		—		14,732
	Hewlett Packard Co	4.30% 01 Jun 2021		—		24,315
	Hewlett Packard Co	4.65% 09 Dec 2021		—		2,748
	Hewlett Packard Co	4.3% 01 Jun 2021		—		7,240
	Hilton USA Trust	2.662% 05 Nov 2030		—		28,992
	Honda Auto Receivables	0.7% 16 Feb 2016		—		13,775
	Honda Auto Receivables	0.56% 15 May 2016		—		23,886
	HSBC Holdings PLC	5.1% 05 Apr 2021		—		6,891
	Humana Inc	7.2% 15 Jun 2018		—		13,872
	Huntington Auto Trust	1.01% 15 Jan 2016		—		3,491
	Huntington Auto Trust	1.18% 15 Jun 2017		—		31,225
	Hyundai Auto Lease	0.66% 15 Jun 2016		—		14,354
	Hyundai Auto Receivables	1.65% 15 Feb 2017		—		19,985
	ING Bank	2.0% 25 Sep 2015		—		13,975
	Intl Bk Recon & Develop	9.25% 15 Jul 2017		—		4,305
	Intl Paper Co	7.95% 15 Jun 2018		—		1,965
	Jabil Circuit Inc	8.25% 15 Mar 2018		—		2,847
	John Deere Capital Corp	2.0% 13 Jan 2017		—		11,376
	JP Morgan Chase Commercial Mortgage	5.42% 15 Jan 2049		—		40,213
	JP Morgan Chase & Co	6.0% 15 Jan 2018		—		27,624
	JP Morgan Chase & Co	4.4% 22 Jul 2020		—		8,258
	JP Morgan Chase & Co	6.0% 15 Jan 2018		—		12,415
	JP Morgan Chase Commercial Mortgage	1.0% 12 Jun 2043		—		19,047
	JP Morgan Chase Commercial Mortgage	5.439% 15 Jan 2049		—		29,722
	JP Morgan Chase Commercial Mortgage	1.0% 12 Feb 2051		—		26,298
	JP Morgan Chase Commercial Mortgage	2.7493% 15 Nov 2043		—		9,096
	JP Morgan Chase Commercial Mortgage	1.0% 12 Dec 2044		—		1,837
	JP Morgan Chase Commercial Mortgage	3.1425% 15 Dec 2047		—		26,612
	Kazmunaygas National Co	7.0% 05 May 2020		—		6,203
	Kinder Morgan	5.95% 15 Feb 2018		—		12,559
	Kinder Morgan	6.85% 15 Feb 2020		—		19,865
	Kinder Morgan	4.15% 01 Mar 2022		—		5,245
	Kinder Morgan	3.95% 01 Sep 2022		—		9,850
	Korea Finance Corp	2.25% 07 Aug 2017		—		24,254
	Korea National Oil Corp	3.125% 03 Apr 2017		—		13,742

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Kraft Foods Group Inc	5.375% 10 Feb 2020		—		12,925
	LB UBS Commercial Mortgage	5.3% 15 Nov 2038		—		8,525
	LB UBS Commercial Mortgage	1.0% 15 Jun 2029		—		1,177
	Liberty Property LP	5.5% 15 Dec 2016		—		2,083
	Liberty Property LP	6.625% 01 Oct 2017		—		1,235
	Life Technologies Corp	6.0% 01 Mar 2020		—		16,880
	Lincoln National Corp	4.3% 15 Jun 2015		—		3,956
	Lincoln National Corp	8.75% 01 Jul 2019		—		3,539
	Lorillard Tobacco Co	2.3% 21 Aug 2017		—		18,640
	Lorillard Tobacco Co	3.75% 20 May 2023		—		11,533
	Lyondellbasell Ind	5.0% 15 Apr 2019		—		25,746
	M&T Bank Auto Receivables Trust	1.06% 15 Nov 2017		—		11,728
	Macquarie Bank Ltd	5.0% 22 Feb 2017		—		2,718
	Macquarie Group Ltd	4.875% 10 Aug 2017		—		5,573
	Macys Retail Hldgs Inc	3.875% 15 Jan 2022		—		11,159
	Manuf & Traders Trust Co	1.0% 28 Dec 2020		—		7,011
	Marathon Petroleum Corp	5.125% 01 Mar 2021		—		4,468
	McKesson Corp	3.25% 01 Mar 2016		—		29,075
	Mercedes Benz Auto Lease Trust	0.59% 15 Feb 2016		—		9,332
	Merrill Lynch Mortgage	1.0% 25 Aug 2036		—		387
	Merrill Lynch Mortgage	4.96% 12 Jul 2038		—		8,110
	Merrill Lynch Mortgage	1.0% 12 Aug 2043		—		9,594
	Methanex Corp	3.25% 15 Dec 2019		—		6,421
*	MetLife Inc	7.717% 15 Feb 2019		—		3,942
*	MetLife Inc	6.817% 15 Aug 2018		—		11,933
*	MetLife Inc	6.75% 01 Jun 2016		—		9,348
	ML CFC Commercial Mortgage Trust	1.0% 12 Mar 2051		—		33,356
	ML CFC Commercial Mortgage Trust	5.166% 12 Dec 2049		—		35,961
	ML CFC Commercial Mortgage Trust	5.7% 12 Sep 2049		—		22,163
	Morgan Stanley	5.5% 24 Jul 2020		—		15,073
	Morgan Stanley	5.5% 28 Jul 2021		—		9,398
	Morgan Stanley	5.625% 23 Sep 2019		—		9,805
	Morgan Stanley	5.55% 27 Apr 2017		—		6,164
	Morgan Stanley	5.95% 28 Dec 2017		—		21,404
	Morgan Stanley	5.5% 28 Jul 2021		—		12,500
	Morgan Stanley	6.625% 01 Apr 2018		—		40,213
	Morgan Stanley BAML Trust	4.039% 15 Nov 2046		—		12,482
	Morgan Stanley Capital I Trust	4.89% 12 Jun 2047		—		25,304
	Morgan Stanley Capital I Trust	1.0% 12 Aug 2041		—		262
	Morgan Stanley Capital I Trust	1.0% 11 Jun 2042		—		16,051
	Morgan Stanley Capital I Trust	1.0% 11 Jun 2042		—		22,516
	Motel 6 Trust	1.9483% 05 Oct 2025		—		13,609
	Murray St Inv Trust I	1.0% 08 Mar 2017		—		1,335
	Mylan Inc	4.2% 29 Nov 2023		—		25,187
	Mylan Inc	2.55% 28 Mar 2019		—		20,548
	Mylan Inc	2.55% 28 Mar 2019		—		13,076
	Nabors Industries Inc	5.10% 15 Sep 2023		—		4,979
	Nabors Industries Inc	5.0% 15 Sep 2020		—		17,109
	Natl Grid PLC	6.3% 01 Aug 2016		—		15,157

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	NBC Universal Enterprise	1.0% 15 Apr 2016		—		26,831
	NCUA Guaranteed Notes	1.0% 07 Oct 2020		—		21,567
	NCUA Guaranteed Notes	1.0% 08 Dec 2020		—		75,174
	NCUA Guaranteed Notes	2.9% 29 Oct 2020		—		19,769
	Nevada Power Co	6.5% 01 Aug 2018		—		7,979
	Newmont Mining Corp	3.5% 15 Mar 2022		—		18,011
	Nisource Finance Corp	6.8% 15 Jan 2019		—		11,607
	Nisource Finance Corp	5.25% 15 Sep 2017		—		10,417
	Nissan Auto Lease Trust	0.45% 15 Jun 2015		—		4,130
	Nissan Auto Lease Trust	0.57% 15 Jan 2016		—		13,151
	Noble Energy Inc	8.25% 01 Mar 2019		—		11,626
	Noble Holding Intl Ltd	4.9% 01 Aug 2020		—		1,053
	Noble Holding Intl Ltd	3.95% 15 Mar 2022		—		3,557
	Nomura Holdings Inc	2.0% 13 Sep 2016		—		13,371
	Norfolk Southern Corp	5.75% 01 Apr 2018		—		5,989
	Occidental Petroleum Corp	1.75% 15 Feb 2017		—		26,101
	Odebrecht Finance Ltd	5.125% 26 Jun 2022		—		5,276
	Omnicom Group Inc	4.45% 15 Aug 2020		—		25,891
	Omnicom Group Inc	3.625% 01 May 2022		—		4,359
	Oneok Inc	4.25% 01 Feb 2022		—		12,298
	Oracle Corp	1.2% 15 Oct 2017		—		20,424
	Orix Corp	4.71% 27 Apr 2015		—		8,262
	Owens Corning Inc	6.5% 01 Dec 2016		—		6,252
	Penarth	1.0% 18 Mar 2014		—		14,964
	Petroleos Mexicanos	3.5% 18 Jul 2018		—		7,414
	Petronas Capital Ltd	5.25% 12 Aug 2019		—		11,670
	Philip Morris Intl Inc	4.5% 26 Mar 2020		—		3,789
	Philip Morris Intl Inc	1.875% 15 Jan 2019		—		21,732
	PNC Bank NA	6.875% 01 Apr 2018		—		13,545
	Pride International Inc	8.5% 15 Jun 2019		—		6,390
	Prudential Financial Inc	4.5% 15 Nov 2020		—		8,212
	Quest Diagnostic Inc	4.75% 30 Jan 2020		—		12,899
	Questar Corp	2.75% 01 Feb 2016		—		15,275
	Raytheon	3.125% 15 Oct 2020		—		25,771
	Regency Centers LP	5.25% 01 Aug 2015		—		1,746
	Regency Centers LP	5.875% 15 Jun 2017		—		4,357
	Reliance Steel & Alum	4.5% 15 Apr 2023		—		2,247
	Republic Services Inc	3.8% 15 May 2018		—		371
	Residential Asset Securities	1.0% 25 May 2033		—		207
	Reynolds American Inc	3.25% 01 Nov 2022		—		5,764
	Rio Tinto Fin USA Ltd	3.5% 02 Nov 2020		—		21,741
	Rio Tinto Fin USA Plc	3.5% 22 Mar 2022		—		1,984
	Rio Tinto Fin USA Plc	2.875% 21 Aug 2022		—		6,406
	Rio Tinto Fin USA Plc	2.25% 14 Dec 2018		—		11,882
	Rockwell Collins Inc	1.0% 15 Dec 2016		—		4,987
	Rowan Companies Inc	5.0% 01 Sep 2017		—		10,371
	Royal Bk of Scotland Plc	6.125% 11 Jan 2021		—		11,899
	Royal Bk Scotlnd Grp Plc	2.55% 18 Sep 2015		—		15,438
	Santander Drive Auto	0.82% 15 Feb 2018		—		9,294

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Santander Drive Auto	0.62% 15 Jun 2017		—		14,142
	Santander Drive Auto	0.47% 15 Sep 2015		—		1,804
	Santander Drive Auto	0.64% 17 Apr 2017		—		7,791
	Santander Holdings USA	4.625% 19 Apr 2016		—		3,737
	Santander US	3.724% 20 Jan 2015		—		40,551
	SCSLC 2010	1.0% 25 Jul 2025		—		60,745
	Sempra Energy	4.05% 01 Dec 2023		—		13,042
	Sempra Energy	6.5% 01 Jun 2016		—		8,947
	Sinopec Grp	4.375% 17 Oct 2023		—		12,746
	SLM Student Loan Trust	1.0% 25 Sep 2019		—		35,989
	Smart Trust	1.25% 14 Aug 2018		—		29,272
	Smart Trust	0.67% 14 Jun 2015		—		4,856
	Snap On Inc	4.25% 15 Jan 2018		—		9,240
	Societe Generale	2.5% 15 Jan 2014		—		6,472
	Southern Cal Edison	5.5% 15 Aug 2018		—		12,343
	Southern Co	1.95% 01 Sep 2016		—		25,858
	Southwest Airlines	5.25% 01 Oct 2014		—		5,146
	Southwest Airlines	5.75% 15 Dec 2016		—		4,504
	Spectra Energy Capital	8.00% 01 Oct 2019		—		11,238
	Spectra Energy Partners	2.95% 15 Aug 2018		—		12,452
	Spectra Energy Partners	2.95% 25 Sep 2018		—		2,732
	Standard Chartered PLC	1.0% 12 Jul 2022		—		13,640
	Staples Inc	2.75% 12 Jan 2018		—		12,710
	State Street Corp	3.7% 20 Nov 2023		—		5,215
	Stryker Corp	2.0% 30 Sep 2016		—		26,032
	Svenska Handelsbanken AB Bank	2.875% 04 Apr 2017		—		7,019
	Talent Yield Investments	4.5% 25 Apr 2022		—		13,119
	Teck Resources Limited	4.5% 15 Jan 2021		—		8,147
	Teck Resources Limited	4.5% 15 Jan 2021		—		17,923
	Teck Resources Limited	3.75% 01 Feb 2023		—		17,588
	Telefonica Emisiones Sau	5.134% 27 Apr 2020		—		34,220
	Telefonica Emisiones Sau	5.462% 16 Feb 2021		—		4,693
	Telefonica Emisiones Sau	5.462% 16 Feb 2021		—		18,060
	Thermo Fisher Scientific Inc	4.15% 01 Feb 2024		—		4,726
	Time Warner Cable Inc	7.5% 01 Apr 2014		—		9,317
	Time Warner Cable Inc	5.0% 01 Feb 2020		—		3,284
	Time Warner Cable Inc	4.0% 01 Sep 2021		—		11,516
	Time Warner Inc	4.875% 15 Mar 2020		—		15,363
	Time Warner Inc	4.7% 15 Jan 2021		—		14,166
	Total Capital SA	4.45% 24 Jun 2020		—		25,398
	Total System Services	2.375% 01 Jun 2018		—		3,724
	Total System Services	3.75% 01 Jun 2023		—		3,463
	Toyota Motor Credit Corp	2.0% 15 Sep 2016		—		26,063
	Trans Canada Pipelines	3.4% 01 Jun 2015		—		8,121
	Transocean Inc Company	6.37% 15 Dec 2021		—		61
	Transocean Inc Company	3.8% 15 Oct 2022		—		3,858
	Travelers Cos Inc	5.75% 15 Dec 2017		—		11,433
	Tyson Foods Inc	4.5% 15 Jun 2022		—		13,997
	UBS AG	5.875% 15 Jul 2016		—		16,035

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Unicredito Luxem Fin	6.0% 31 Oct 2017		—		6,596
	Unum Group	5.625% 15 Sep 2020		—		11,228
	US Cellular Corp	6.7% 15 Dec 2033		—		1,073
	Valero Energy Corp	6.125% 01 Feb 2020		—		8,097
	Verizon Communications	3.65% 14 Sep 2018		—		21,971
	Verizon Communications	3.65% 14 Sep 2018		—		36,666
	Verizon Communications	5.5% 15 Feb 2018		—		8,831
	Verizon Communications	5.15% 15 Sep 2023		—		17,915
	Viacom Inc	5.625% 15 Sep 2019		—		1,993
	Vodafone Group	2.95% 19 Feb 2023		—		10,940
	Wachovia Bank Commercial Mortgage	1.0% 15 May 2043		—		24,891
	Walgreen Co	1.0% 13 Mar 2015		—		21,788
	Waste Management Inc	4.75% 30 Jun 2020		—		12,311
	Weatherford Bermuda	6.0% 15 Mar 2018		—		666
	Weatherford Bermuda	5.125% 15 Sep 2020		—		13,754
	Wellpoint Inc	1.25% 10 Sep 2015		—		17,371
	Wells Fargo & Company	1.0% 15 Jun 2016		—		13,489
	Wells Fargo & Company	4.125% 15 Aug 2023		—		17,936
	Wells Fargo & Company	2.1% 08 May 2017		—		25,397
	Wells Fargo Commercial Mortgage	2.918% 15 Oct 2045		—		35,978
	Wells Fargo Commercial Mortgage	1.0% 15 Jul 2046		—		26,498
	Western Union Co	2.375% 10 Dec 2015		—		2,207
	Western Union Co	3.35% 22 May 2019		—		11,301
	WF RBS Commercial Mortgage	4.023% 15 Dec 2046		—		11,156
	WF RBS Commercial Mortgage	3.337% 15 Jun 2046		—		11,856
	WF RBS Commercial Mortgage	3.526% 15 Nov 2044		—		33,424
	WF RBS Commercial Mortgage	2.921% 15 Dec 2046		—		15,270
	Williams Companies Inc	3.7% 15 Jan 2023		—		10,846
	Williams Partners LP	4.0% 15 Nov 2021		—		9,051
	World Financial Network	3.14% 17 Jan 2023		—		39,860
	World Financial Network	1.76% 17 May 2021		—		8,745
	World Financial Network	1.61% 15 Dec 2021		—		6,796
	World Omni Auto	0.93% 16 Nov 2015		—		7,838
	WPP Finance	4.75% 21 Nov 2021		—		5,436
	Wyndham Worldwide Corp	2.5% 01 Mar 2018		—		13,700
	Xerox Corporation	5.625% 15 Dec 2019		—		12,484
	XLIT Ltd	2.3% 15 Dec 2018		—		11,252
	XLIT Ltd	5.25% 15 Sep 2014		—		9,307

				—		6,438,177


Separate Investment Contract

*	Metropolitan Life Insurance Company	Separate Account		—		4,783,304

Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2013


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
Benefit Responsive Interest Rate Wrapper Contracts

*	Bank of America	Open Ended Maturity		—		(1,860	)
*	Metropolitan Life Insurance Company	Open Ended Maturity		—		1,814
*	Transamerica Inc	Open Ended Maturity		—		(3,521	)

				—		(3,567	)

Synthetic Guaranteed Investment Contracts (contract value equals $19,305,984)				—	$	20,329,072


Commingled Investments:

*	Daily Emer Mkts Index Ser State Str Bk & Tr Co	Commingled Investments		—		20,838
*	Northern Trust S&P 400 Ind Fnd	Commingled Investments		—		145,109
*	SSgA EAFE Equity Fund	Commingled Investments		—		2,297,728
*	SSgA S&P 500 Fund	Commingled Investments		—		6,405,632
*	SSgA Small CAP Fund	Commingled Investments		—		2,631,656
	Vanguard Target Retirement 2010 Fund	Commingled Investments		—		6,535
	Vanguard Target Retirement 2015 Fund	Commingled Investments		—		321,449
	Vanguard Target Retirement 2020 Fund	Commingled Investments		—		429,443
	Vanguard Target Retirement 2025 Fund	Commingled Investments		—		371,644
	Vanguard Target Retirement 2030 Fund	Commingled Investments		—		608,478
	Vanguard Target Retirement 2035 Fund	Commingled Investments		—		490,083
	Vanguard Target Retirement 2040 Fund	Commingled Investments		—		767,859
	Vanguard Target Retirement 2045 Fund	Commingled Investments		—		415,543
	Vanguard Target Retirement 2050 Fund	Commingled Investments		—		576,899
	Vanguard Target Retirement Income	Commingled Investments		—		135,833

	Commingled Investments			—	$	15,624,729

*	Notes Receivables from Participants	Interest rates range from 4.25% to 9.25%		—	$	4,072,526


	Collateral Held on Loaned Securities
	* SSgA Quality D Short-term Investment Fund			—	$	188,315

	Total Investments			—	$	52,800,135

*	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.

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.