Edgar Filing: BAXTER INTERNATIONAL INC

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, 2012

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

For the transition period from to

Commission file number 1-4448

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

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Baxter International Inc.

One Baxter Parkway

Deerfield, IL 60015

(224) 948-2000

Baxter International Inc.

and Subsidiaries

Incentive Investment Plan

Financial Statements and Supplemental Schedule

December 31, 2012 and 2011

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Index

December 31, 2012 and 2011


	Page(s)

Report of Independent Registered Public Accounting Firm		1

Financial Statements

Statements of Net Assets Available for Benefits as of December 31, 2012 and 2011		2

Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 2012 and 2011		3

Notes to Financial Statements		4-14

Supplemental Information

Schedule H, Line 4i: Schedule of Assets (Held at End of Year) as of December 31, 2012		16-67

Report of Independent Registered Public Accounting Firm

To the Participants and Administrative Committee of

the Baxter International Inc. and Subsidiaries Incentive Investment Plan

Deerfield, Illinois

We have audited the accompanying statements of net assets available for benefits of the Baxter International Inc. and Subsidiaries Incentive Investment Plan (“the Plan”) as of December 31, 2012 and 2011, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

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

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

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

/s/ Crowe Horwath LLP

Oak Brook, Illinois

June 26, 2013

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Statements of Net Assets Available for Benefits

December 31, 2012 and 2011 (in thousands)


	2012			2011
Assets
Investments
Cash and cash equivalents	$	47,603		$	55,858
Common stock (including securities on loan of $2,821 in 2012 and $1,108 in 2011)		444,196			394,301
U.S. government and government agency issues (including securities on loan of $8,091 in 2012 and $5,336 in 2011)		28,292			21,865
Corporate and other obligations (including securities on loan of $7,559 in 2012 and $7,072 in 2011)		40,509			40,242
Commingled funds		381,516			335,027
Registered investment companies		307,109			214,074
Synthetic guaranteed investment contracts		777,297			743,892
Collateral held on loaned securities		18,842			13,782

Total investments at fair value		2,045,364			1,819,041

Receivables
Notes receivables from participants		43,079			40,514
Sponsor contributions		18,963			15,102
Accrued interest and dividends		1,975			1,869
Due from brokers for securities sold		1,415			16

Total receivables		65,432			57,501

Total assets		2,110,796			1,876,542

Liabilities
Accounts payable		6,126			4,295
Due to brokers for securities purchased		—			81
Collateral to be paid on loaned securities		18,842			13,782

Total liabilities		24,968			18,158

Net assets available for benefits, reflecting investments at fair value		2,085,828			1,858,384
Adjustment from fair value to contract value for fully benefit-responsive investment contracts		(68,692	)		(60,432	)

Net assets available for benefits	$	2,017,136		$	1,797,952

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

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Statements of Changes in Net Assets Available for Benefits

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


	2012		2011
Additions (reductions) to net assets attributed to
Investment income
Net appreciation (depreciation) in fair value of investments	$	168,628	$	(39,315	)
Interest		28,982		30,742
Dividends		14,771		12,405

Net investment income		212,381		3,832

Participant loan interest		3,525		1,811

Contributions
Sponsor		59,471		53,357
Participant		92,936		84,207

		152,407		137,564

Net additions		368,313		143,207

Deductions from net assets attributed to
Benefits paid		161,649		148,773
Plan expenses		7,138		6,569

Total deductions		168,787		155,342

Increase (decrease) before transfer		199,526		(12,135	)
Transfer from other plan (Refer to Note 11)		19,658		—
Net increase (decrease)		219,184		(12,135	)

Net assets available for benefits
Beginning of year		1,797,952		1,810,087

End of year	$	2,017,136	$	1,797,952

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

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

1.	General Description of the Plan

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

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

Participants may borrow up to the lesser of $50,000 or 50% of their vested account balance. The loans are secured by the balance in the participant’s account and bear interest at variable rates as outlined in the Plan agreement. The loans are reported at their unpaid principal balance plus any accrued but unpaid interest, with no allowance for credit losses, as repayments of principal and interest are received through payroll deductions and the notes are collateralized by the participant’s account balances.

Participants or their beneficiaries may elect lump-sum benefit payments, or benefits may be paid in installments. Shares of Baxter common stock may also be distributed in kind at the participant’s election. Subject to certain provisions specified in the Plan agreement, employed participants may withdraw their pre-tax contributions, matching contributions made prior to 2008, vested non-matching contributions and related earnings in cases of financial hardship and in certain other circumstances. In the case of a participant termination of death or disability, the entire vested amount is paid to the person or persons legally entitled thereto.

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

Upon enrollment in the Plan, a participant may direct contributions to any of 18 investment options: Stable Income Fund, Baxter Common Stock Fund, Composite Fund, General Equity Fund, S&P 500 Flagship Fund, International EAFE Equity Index Fund, Small Cap Fund, ten different Target Retirement Funds and the Self-Managed Fund. However, non-matching contributions may not be invested in the Baxter Common Stock Fund. In addition, certain participants may maintain shares received in connection with Baxter’s 1996 spin-off of Allegiance Corporation (Allegiance), which were subsequently converted into common shares of Cardinal Health Inc. (Cardinal) upon Cardinal’s acquisition of Allegiance in 1999. These shares are maintained in the Cardinal Health Common Stock Fund. Additionally, certain participants maintain shares in Edwards Lifesciences Corporation. These shares were placed into the Edwards Lifesciences Common Stock Fund in connection with Baxter’s 2000 spin-off of its cardiovascular business. Participants are not able to make contributions or transfer existing account balances to the Cardinal Health Common Stock Fund or the Edwards Lifesciences Common Stock Fund, but may make transfers out of these funds at any time.

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

2.	Summary of Significant Accounting Policies

Basis of Accounting

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

Valuation of Investments and Collateral

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


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

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

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

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

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

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011


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

Synthetic guaranteed investment contracts		Value based on the fair value of the underlying securities in the contract on the valuation date plus the fair value of wrapper contracts, which is calculated using a replacement cost approach. The underlying securities are valued based upon the methodologies described above. See below for more information.

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

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

Income Recognition

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

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

Synthetic Guaranteed Investment Contracts

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

The fair value of the synthetic GICs equals the total of the fair value of the underlying assets plus the fair value of the wrapper contracts. The fair value of the wrapper contracts is computed using a replacement cost approach that incorporates a comparison of the current fee rate on similar wrapper contracts to the fee being paid by the Plan. Using this approach, the fair values of the wrapper contracts were a loss of $991 thousand and a loss of $343 thousand at December 31, 2012 and 2011, respectively.

While Plan investments are presented at fair value in the Statements of Net Assets Available for Benefits, any material difference between the fair value of the Plan’s direct and indirect interests in fully benefit-responsive investment contracts and their contract value is presented as an adjustment line in the Statements of Net Assets Available for Benefits, because contract value is the relevant measurement attribute for that portion of the Plan’s net assets available for benefits. Contract value represents contributions, plus earnings, less participant withdrawals and administrative expenses. The wrapper contracts used by the Plan are fully benefit-responsive because the wrapper contract issuers are contractually obligated to make up any shortfall in the event that the underlying asset portfolio has been liquidated and is inadequate to cover participant withdrawals and transfers

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

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 $708.6 million and $683.5 million at December 31, 2012 and 2011, respectively.

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

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

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

Payment of Benefits and Fees

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

Use of Estimates

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

Other

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

Risks and Uncertainties

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

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

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

3.	Eligibility Requirements

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

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

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

U.S. employees who are not leased employees.

4.	Administration of the Plan

State Street Bank and Trust Company (the Trustee) serves as trustee and ING Institutional Plan Services, LLC serves as recordkeeper for the Plan.

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

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

5.	Fair Value Measurements

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

•

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

•

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

•

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

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

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


				Basis of Fair Value Measurement
	Balance at December 31, 2012			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(in thousands)	Balance at December 31, 2012					Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Cash and cash equivalents	$	47,603		$	—	$	47,603	$	—
Common stock:
Healthcare		233,821			233,821		—		—
Consumer products		51,020			51,020		—		—
Information technology		57,333			57,333		—		—
Financial services		30,371			30,371		—		—
Industrial services and materials		29,686			29,686		—		—
Energy		14,125			14,125		—		—
Other		27,840			27,840		—		—

Total common stock		444,196			444,196		—		—

U.S. government and government agency issues		28,292			—		28,292		—
Corporate and other obligations		40,509			—		40,509		—
Commingled funds		381,516			—		381,516		—
Registered investment companies:
Target retirement funds		291,573			291,573		—		—
Self-managed funds		12,772			12,772		—		—
Other		2,764			2,764		—		—

Total registered investment companies		307,109			307,109		—		—

Synthetic guaranteed investment contracts:
Corporate and other obligations		293,972			—		293,972		—
U.S. government and government agency issues		442,114			—		442,114		—
Cash and cash equivalents		42,202			—		42,202		—
Wrapper contracts		(991	)		—		—		(991	)

Total synthetic guaranteed investment contracts		777,297			—		778,288		(991	)

Collateral held on loaned securities		18,842			—		18,842		—

Total assets	$	2,045,364		$	751,305	$	1,295,050	$	(991	)

Liability
Collateral to be paid on loaned securities	$	18,842		$	2,859	$	15,983	$	—

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011


				Basis of Fair Value Measurement
	Balance at December 31, 2011			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
(in thousands)	Balance at December 31, 2011					Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Cash and cash equivalents	$	55,858		$	—	$	55,858		$	—
Common stock:
Healthcare		201,587			201,587		—			—
Consumer products		55,827			55,827		—			—
Information technology		47,938			47,938		—			—
Financial services		21,838			21,838		—			—
Industrial services and materials		20,624			20,624		—			—
Energy		16,602			16,602		—			—
Other		29,885			29,885		—			—

Total common stock		394,301			394,301		—			—

U.S. government and government agency issues		21,865			—		21,865			—
Corporate and other obligations		40,242			—		40,242			—
Commingled funds		335,027			—		335,027			—
Registered investment companies:
Target retirement funds		199,777			199,777		—			—
Self-managed funds		11,830			11,830		—			—
Other		2,467			2,467		—			—

Total registered investment companies		214,074			214,074		—			—

Synthetic guaranteed investment contracts:
Corporate and other obligations		257,547			—		257,547			—
U.S. government and government agency issues		463,348			—		463,348			—
Cash and cash equivalents		23,347			17		23,330			—
Wrapper contracts		(343	)		—		—			(343	)
Other		(7	)		—		(7	)		—

Total synthetic guaranteed investment contracts		743,892			17		744,218			(343	)

Collateral held on loaned securities		13,782			—		13,782			—

Total assets	$	1,819,041		$	608,392	$	1,210,992		$	(343	)

Liability
Collateral to be paid on loaned securities	$	13,782		$	1,135	$	12,647		$	—

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

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

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


(in thousands)	Wrapper Contracts
Balance at December 31, 2010	$	1,634
Unrealized losses (relating to assets held at end of year)		(1,977	)

Balance at December 31, 2011		(343	)

Unrealized losses (relating to assets held at end of year)		(648	)

Balance at December 31, 2012	$	(991	)

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

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

6.	Investments

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


(in thousands, except per share data)	2012		2011
Baxter common stock, 2,516,782 shares and 2,921,806 shares at December 31, 2012 and 2011, respectively	$	167,769	$	144,571
State Street Global Advisors (SSgA) S&P 500 Flagship Fund		197,250		173,817

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

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


	2012			2011
(in thousands)
Cash (available for investment)	$	6,597		$	6,861
Stable Income Fund		803,238			775,335
Baxter Common Stock Fund		168,607			144,639
Composite Fund		154,624			140,853
General Equity Fund		151,465			137,841
Cardinal Health Common Stock Fund		4,847			5,243
SSgA S&P 500 Flagship Fund		197,250			173,954
SSgA International EAFE Equity Index Fund		90,079			80,053
Edwards Lifesciences Common Stock Fund		19,658			17,747
SSgA Small Cap Fund		94,187			81,274
Self-Managed Fund		44,397			41,682
Target Retirement Funds		291,573			199,777
Collateral held on loaned securities		18,842			13,782

Total investments at fair value		2,045,364			1,819,041
Adjustment from fair value to contract value for Stable Income Fund		(68,692	)		(60,432	)

Total investments	$	1,976,672		$	1,758,609

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


	2012		2011
(in thousands)
Baxter common stock	$	48,002	$	(1,295	)
Other common stock		38,620		(22,315	)
U.S. government and government agency issues		38		1,154
Corporate and other obligations		3,365		1,031
Commingled funds		54,283		(11,490	)
Registered investment companies		24,320		(7,314	)
Collateral held on loaned securities		—		914

	$	168,628	$	(39,315	)

7.	Securities Lending Transactions

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

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

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

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

As of December 31, 2010, the Plan had securities on loan with a fair value of $228.8 million, with cash collateral received of $232.9 million, which was reflected at its fair value of $230.4 million. During 2010, $218.4 million was redeemed from the State Street Quality D Short-Term Investment Fund and held in a separate fund (Baxter International Savings Trust Separate Account) for liquidation due to an agreement between the Plan and the Trustee to terminate the securities lending program for the securities within the Stable Income Fund. As a result of the liquidation of this fund in 2011, a realized gain of $914 thousand is reflected in the 2011 Statement of Changes in Net Assets Available for Benefits. As of December 31, 2012 and 2011, the Plan had securities on loan with a fair value of $18.5 million and $13.5 million, respectively, with cash collateral received of $18.8 million and $13.8 million, respectively, which was invested in the State Street Quality D Short-Term Investment Fund. Investments underlying this fund primarily consisted of cash and cash equivalents and asset-backed securities as of both December 31, 2012 and 2011, and the net asset value of this fund was approximately $1.00 per unit. As of December 31, 2012 and 2011 the cash collateral received is reflected at its fair value of $18.8 million and $13.8 million in the 2012 and 2011 Statements of Net Assets Available for Benefits, respectively.

The Plan did not receive any non-cash collateral for securities on loan at December 31, 2012. Non-cash collateral of $2.0 million received for securities on loan at December 31, 2011, consisted of U.S. government and government agency issues held by the Trustee on behalf of the Plan. Non-cash collateral is not included with the collateral balance on the 2011 Statement of Net Assets Available for Benefits because it may not be sold or repledged. A portion of the income generated upon investment of cash collateral is remitted to the Borrowers, and the remainder is allocated between the Plan and the Trustee in its capacity as a security agent. Securities lending income allocated to the Plan amounted to $45 thousand and $57 thousand for 2012 and 2011, respectively. Securities lending income is classified as interest income in the Statements of Changes in Net Assets Available for Benefits.

8.	Plan Termination

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

9.	Tax Status of the Plan

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

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2012 and 2011

10.

Related Parties

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

At December 31, 2012 and 2011, the Plan held units of participation in certain shares of common stock of State Street Corporation, commingled funds and short-term investment funds of State Street Bank and Trust Company, and units of registered investment companies of SSgA, the Plan trustee; shares of common stock and bonds of Baxter, the Plan sponsor; loans with participants; units of registered investment companies managed by Pacific Investment Management Company, an investment manager for the Plan; shares of common stock and units of registered investment companies managed by AllianceBernstein, an investment manager for the Plan; units of registered investment companies managed by Loomis Sayles, an investment manager for the Plan; shares of common stock, bonds, and interest rate wrapper contracts of Bank of America, issuer of the Plan’s fully benefit-responsive contracts; interest rate wrapper contracts of Transamerica, issuer of the Plan’s fully benefit-responsive contracts; and units of registered investment companies in various affiliates of ING Institutional Plan Services, LLC, the recordkeeper. These transactions are allowable party-in-interest transactions under ERISA and the regulations promulgated thereunder.

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

11.

Plan Merger

During 2011, Baxter acquired Baxa Corporation (Baxa). The Baxa 401(k) Plan was merged into the Plan effective October 2012. As a result of this merger, total assets of approximately $19.7 million were transferred into the Plan.

SUPPLEMENTAL SCHEDULE

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Cash & Cash Equivalents:
*	SSgA Money Market Fund	Short-Term Investment Fund		—	$	9,153,455
*	State Street Bank & Trust Co	Short-Term Investment Fund		—		38,436,778
	United States Dollar	Cash		—		12,545

					$	47,602,778

**	Common Stock:
	3D Systems Corp	Common Stock		—		213
	3Dicon Corp	Common Stock		—		1,437
	3M Company	Common Stock		—		11,960
	8X8 Inc	Common Stock		—		8,856
	A123 Systems	Common Stock		—		11
	ABB Ltd	Common Stock		—		49,571
	Abbott Laboratories	Common Stock		—		162,542
	Abbott Laboratories	Common Stock		—		1,296,052
	Access Pharmaceuticals Inc	Common Stock		—		2,867
	Acclaim Entertainment Inc	Common Stock		—		—
	ACE Ltd	Common Stock		—		1,178,069
	Achillion Pharmaceuticals Inc	Common Stock		—		801
	Acme Packet Inc	Common Stock		—		17,696
	Acorda Therapeutics Inc	Common Stock		—		12,430
	Activision Blizzard Inc	Common Stock		—		23,491
	Adaptive Broadband Corp	Common Stock		—		—
	Adarna Energy Corp	Common Stock		—		—
	Adept Technology Inc	Common Stock		—		2,600
	Adobe Systems	Common Stock		—		941,365
	Adolor Corporation	Common Stock		—		—
	ADT Corp	Common Stock		—		511
	Advanced Micro Devices Inc	Common Stock		—		5,472
	Advanced Optics Electronics Inc	Common Stock		—		—
	Advansource Biomaterials Corp	Common Stock		—		85
	Advanta Corp	Common Stock		—		—
	Advantage Oil & Gas Ltd	Common Stock		—		810
	Adventrx Pharmaceuticals Inc	Common Stock		—		570
	AES Corp	Common Stock		—		1,035,468
	Affymax Inc	Common Stock		—		3,798
	Aflac Inc	Common Stock		—		37,848
	Agenus Inc	Common Stock		—		4,252
	Agilent Technologies	Common Stock		—		743,175
	Agnico Eagle Mines Ltd	Common Stock		—		26,831
	Agrium Inc	Common Stock		—		7,490
	AK Steel Hldg Corp	Common Stock		—		2,308
	Akorn Inc	Common Stock		—		30,060
	Aksys Ltd	Common Stock		—		1
	Alcatel Lucent	Common Stock		—		7,075
	Alcoa Inc	Common Stock		—		17,325
	Alexco Resource Corp	Common Stock		—		24,990
	Alexion Pharmaceuticals	Common Stock		—		2,061,503

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	ALJ Regal Holdings Inc	Common Stock		—		700
	All American Gold Corp	Common Stock		—		8
	Allergan Inc	Common Stock		—		2,086,810
	Alliance Pharmaceutical Corp	Common Stock		—		2
	Alliancebernstein Hldg LP	Common Stock		—		8,470
	Allied Irish Banks	Common Stock		—		1,070
	Allos Therapeutics Inc	Common Stock		—		—
	Allscripts Healthcare Solutions Inc	Common Stock		—		4,540
	Allstate Corp	Common Stock		—		21,678
	Almaden Minerals Ltd	Common Stock		—		15,850
	Alnylam Pharmaceuticals Inc	Common Stock		—		1,825
	Alon USA Energy Inc	Common Stock		—		9,950
	Altair Nanotechnologies Inc	Common Stock		—		88
	Alternative Living Services	Common Stock		—		—
	Altria Group Inc	Common Stock		—		149,330
	Aluminum Corp China Ltd	Common Stock		—		202
	Alvarion Ltd	Common Stock		—		186
	Amarin Corp	Common Stock		—		30,216
	Amazon.com Inc	Common Stock		—		72,752
	Amazon.com Inc	Common Stock		—		3,936,918
	Amcore Finl Inc	Common Stock		—		—
	Amdocs Ltd	Common Stock		—		6,798
	Ameren Corp	Common Stock		—		3,266
	American Cap Agy Corp	Common Stock		—		25,866
	American Cap Ltd	Common Stock		—		32,229
	American Cap Mtg Invt Corp	Common Stock		—		5,512
	American Elec Pwr Co	Common Stock		—		40,508
	American Express Co	Common Stock		—		6,897
	American International Group	Common Stock		—		1,209,570
	American Intl Group Inc	Common Stock		—		3,491
	American Intl Group Inc	Common Stock		—		23,404
	American Lithium Minerals Inc	Common Stock		—		120
	American Realty Capital Trust Inc	Common Stock		—		8,266
	American Tower Corporation	Common Stock		—		3,014,857
	American Tower Corporation	Common Stock		—		17,887
	Amerigas Partners LP	Common Stock		—		8,135
	Amgen Inc	Common Stock		—		93,017
	Ampliphi Biosciences Corp	Common Stock		—		1,754
	Amstem Corp	Common Stock		—		—
	Anadarko Pete Corp	Common Stock		—		3,716
	Analog Devices	Common Stock		—		203,513
	Andrea Electronics Corp	Common Stock		—		25
	Annaly Mortgage Management Inc	Common Stock		—		149,171
	Antares Pharma Inc	Common Stock		—		24,765
	Anthera Pharmaceuticals Inc	Common Stock		—		3,100
	AOL Inc	Common Stock		—		415
	AON PLC	Common Stock		—		1,103,564
	Apache Corp	Common Stock		—		17,663
	Apollo Group Inc	Common Stock		—		1,255

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Apple Computer Inc	Common Stock		—		3,856,120
	Apple Inc	Common Stock		—		7,737,939
	Applied Materials Inc	Common Stock		—		2,974
	Applied Materials Inc	Common Stock		—		720,731
	Apptech Corp	Common Stock		—		—
	Apricus Biosciences Inc	Common Stock		—		1,791
	Aqua America Inc	Common Stock		—		3,034
	Aradigm Corp	Common Stock		—		448
	Arch Coal Inc	Common Stock		—		8,658
	Archer Daniels Midland	Common Stock		—		6,598
	Arcos Dorados Holdings Inc	Common Stock		—		35,593
	Arena Pharmaceuticals Inc	Common Stock		—		675,580
	Ariad Pharmaceutical Inc	Common Stock		—		95,612
	ARM Holdings Plc	Common Stock		—		1,353,267
	ARM Holdings Plc	Common Stock		—		9,458
	Array Biopharma Inc	Common Stock		—		5,022
	Artificial Life Inc	Common Stock		—		60
	Asia Pulp & Paper Co	Common Stock		—		—
	Astrazeneca Plc	Common Stock		—		2,127
	Astropower Inc	Common Stock		—		—
	AT&T Inc	Common Stock		—		145,514
	Atlantic Power Corp	Common Stock		—		8,261
	ATP Oil & Gas Corp	Common Stock		—		570
	Atwood Oceanics Inc	Common Stock		—		4,579
	ATX Communications Inc	Common Stock		—		—
	Augme Technologies Inc	Common Stock		—		41,844
	Aurizon Mines Ltd	Common Stock		—		6,960
	Automatic Data Processing Inc	Common Stock		—		40,259
	Avago Technologies	Common Stock		—		1,151,122
	Avanir Pharmaceuticals	Common Stock		—		3,114
	Babson Cap Partn Invs	Common Stock		—		27,820
	Backweb Technologies Ltd	Common Stock		—		327
	Baidu Inc	Common Stock		—		96,278
	Baidu Inc	Common Stock		—		1,288,928
	Banco Bilbao Vizcaya Argentaria Sa	Common Stock		—		7,716
	Banco Latino- Americano De Comercio	Common Stock		—		18,973
	Banco Santander Sa	Common Stock		—		15,354
	Bank New York Mellon Corp	Common Stock		—		28,627
*	Bank of America Corp	Common Stock		—		532,525
*	Bank of America Corp	Common Stock		—		1,175,255
	Bank of Ireland	Common Stock		—		3,413
	Barrick Gold	Common Stock		—		1,078,632
*	Baxter International Inc	Common Stock		—		322,555
*	Baxter International Inc	Common Stock		—		167,446,120
	Bayer AG	Common Stock		—		24,379
	BB&T Corp	Common Stock		—		5,094
	BB&T Corp	Common Stock		—		980,219
	BCE Inc	Common Stock		—		1,115,179
	Beacon Pwr Corp	Common Stock		—		20

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Beacon Roofing Supply Inc	Common Stock		—		33,280
	Berkshire Hathaway Inc	Common Stock		—		149,351
	Best Buy Inc	Common Stock		—		10,818
	Beyond Corp Com New	Common Stock		—		—
	Big Bear Mining Corp	Common Stock		—		10
	Bioclinica Inc	Common Stock		—		5,720
	Biodel Inc	Common Stock		—		705
	Bioelectronics Corp	Common Stock		—		154
	Biogen	Common Stock		—		2,024,478
	Biogen Idec Inc	Common Stock		—		5,269
	Biomedical Technology Solutions	Common Stock		—		28
	Biomerica Inc	Common Stock		—		11,270
	Biomoda Inc	Common Stock		—		135
	Bionovo Inc Com New	Common Stock		—		450
	Biopharm Asia Inc	Common Stock		—		975
	Biosante Pharmaceuticals Inc	Common Stock		—		2,478
	Bizauctions Inc	Common Stock		—		—
	Black Hills Corp	Common Stock		—		3,997
	Blackbaud Inc	Common Stock		—		22,830
	Blackrock Inc	Common Stock		—		959,370
	Blackstone Group LP	Common Stock		—		35,857
	Blavod Extreme Spirits	Common Stock		—		37
	Blyth Inc	Common Stock		—		4,665
	Boeing Co	Common Stock		—		19,025
	Boeing Co	Common Stock		—		2,002,689
	Boingo Wireless Inc	Common Stock		—		7,248
	Borgwarner Inc	Common Stock		—		723,214
	Boston Scientific	Common Stock		—		1,146
	BP Amoco Plc	Common Stock		—		5,190
	BP Liquidating Inc	Common Stock		—		2
	BP PLC	Common Stock		—		842,930
	Braskem S.A.	Common Stock		—		1,335
	Bridgepoint Ed Inc	Common Stock		—		14,863
	Bristol Myers Squibb	Common Stock		—		43,718
	Bristol Myers Squibb	Common Stock		—		1,706,797
	Broadcom Corp	Common Stock		—		42,509
	Broadridge Financial Solutions	Common Stock		—		1,716
	Broadwind Energy Inc	Common Stock		—		22
	Brookfield Asset Mgmt Inc	Common Stock		—		9,163
	Brookfield Infrastructure Partners	Common Stock		—		12,454
	Brookfield Residential Pptys Inc	Common Stock		—		18
	Buckeye Partners LP	Common Stock		—		18,164
	Bunge Ltd	Common Stock		—		1,055,161
	Burberry Group	Common Stock		—		508,843
	Cadence Pharmaceuticals Inc	Common Stock		—		10,634
	Calamp Corp	Common Stock		—		156,324
	Calgon Carbon Corp	Common Stock		—		1,702
	Cambridge Heart Inc	Common Stock		—		15
	Camden Ppty Tr Sh Ben Int	Common Stock		—		13,262

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Cameron Intl Corp	Common Stock		—		4,404
	Canadian Natural Resources Ltd	Common Stock		—		5,774
	Canadian Pacific Railway	Common Stock		—		251,872
	Canadian Solar Inc	Common Stock		—		51
	Capital One	Common Stock		—		1,235,617
	Capital One Financial Corp	Common Stock		—		1,647,490
	Capitalsource Inc	Common Stock		—		14,766
	Capitol Bancorp Ltd	Common Stock		—		37
	Capstead Mtg Corp	Common Stock		—		11,470
	Capstone Turbine Corp	Common Stock		—		89
	Carbonite Inc	Common Stock		—		925
	Cardinal Communications Inc	Common Stock		—		—
	Cardinal Health Inc	Common Stock		—		1,016,607
	Cardinal Health Inc	Common Stock		—		4,808,959
	Cardinal Health Inc	Common Stock		—		95,711
	Cardium Therapeutics Inc	Common Stock		—		1,026
	Carefusion Corp Com	Common Stock		—		28,580
	Carmax Inc	Common Stock		—		9,423
	Catamaran Corp	Common Stock		—		23,691
	Caterpillar Inc	Common Stock		—		210,272
	Cbl & Assoc Pptys Inc	Common Stock		—		2,446
	Celgene Corp	Common Stock		—		14,046
	Cell Therapeutics Inc	Common Stock		—		2,558
	Cel-Sci Corp	Common Stock		—		702
	Cemex SA	Common Stock		—		945
	Cenovus Energy Inc	Common Stock		—		1,811
	Central Fund CDA	Common Stock		—		21,030
	Centurytel Inc	Common Stock		—		3,364
	Ceragon Networks Ltd	Common Stock		—		662
	Cereplast Inc	Common Stock		—		129
	Cerus Corp	Common Stock		—		4,108
	Charles Schwab Corp	Common Stock		—		1,131,577
	Charter Comm Inc	Common Stock		—		—
	Chesapeake Energy Corporation	Common Stock		—		134,728
	Chevron Corp	Common Stock		—		157,174
	Chimera Invt Corp	Common Stock		—		13,676
	China Automotive Sys Inc	Common Stock		—		3,439
	China Biologic Prods Inc	Common Stock		—		4,648
	China Energy Svgs Technology Inc	Common Stock		—		—
	China New Borun Corp	Common Stock		—		1,078
	China Shen Zhou Mng & Res Inc	Common Stock		—		3,220
	Chipotle Mexican Grill Inc	Common Stock		—		49,081
	Chipotle Mexican Grill Inc	Common Stock		—		1,676,344
	Church & Dwight Inc	Common Stock		—		6,918
	Churchill Downs Inc	Common Stock		—		7,063
	Ciena Corp	Common Stock		—		31
	Cisco Systems	Common Stock		—		203,401
	Cisco Systems	Common Stock		—		1,851,133
	Citadel Broadcasting Corp	Common Stock		—		—

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Citigroup Inc	Common Stock		—		2,109,487
	Citigroup Inc	Common Stock		—		1,168,031
	Citigroup Inc	Common Stock		—		166,082
	City Bank Lynnwood Wash	Common Stock		—		20
	Clarent Corp	Common Stock		—		—
	Clean Energy Fuels Corp	Common Stock		—		52,913
	Clean Habors Inc	Common Stock		—		5,501
	Cleco Corp	Common Stock		—		120,030
	Cliffs Nat Res Inc	Common Stock		—		13,590
	Clp Hldgs	Common Stock		—		1,673
	Coach Inc	Common Stock		—		1,789,813
	Coca Cola Co	Common Stock		—		132,839
	Coca Cola Co	Common Stock		—		417,024
	Coeur D Alene Mines Corp	Common Stock		—		20,295
	Coinstar Inc	Common Stock		—		8,842
	Coldwater Creek Inc	Common Stock		—		3,608
	Colgate-Palmolive Co	Common Stock		—		5,784
	Colonial Bancgroup	Common Stock		—		—
	Columbia Laboratories Inc	Common Stock		—		382
	Comcast Corp	Common Stock		—		1,044,606
	Comcast Corp	Common Stock		—		3,736
	Commtouch Software Limited	Common Stock		—		1,290
	Companhia Siderurgica Nacional CSN	Common Stock		—		7,520
	Compass Minerals Intl Inc	Common Stock		—		8,467
	Conagra Foods Inc	Common Stock		—		5,950
	Concho Resources	Common Stock		—		1,699,530
	Conocophillips	Common Stock		—		148,307
	Consolidated Communications Hldgs Inc	Common Stock		—		1,320
	Consolidated Edison Hldg Co Inc	Common Stock		—		69,515
	Constellation Energy Partners Llc	Common Stock		—		7,080
	Corning Inc	Common Stock		—		8,051
	Cortex Pharmaceuticals Inc	Common Stock		—		199
	Costco Wholesale Corp	Common Stock		—		10,083
	Costco Wholesale Corp	Common Stock		—		2,969,296
	Covidien Plc	Common Stock		—		1,168,846
	Covidien Plc	Common Stock		—		1,270
	Cpfl Energia Sa	Common Stock		—		4,192
	Credit Suisse	Common Stock		—		7,254
	Cree Inc	Common Stock		—		88,348
	Crocs Inc	Common Stock		—		20,448
	Cross Timbers Royalty Trust	Common Stock		—		404
	Crown Castle Intl	Common Stock		—		1,563,221
	Cubist Pharmaceuticals Inc	Common Stock		—		2,103
	Cui Global Inc	Common Stock		—		88
	Cummins Inc	Common Stock		—		1,021,784
	Cummins Inc	Common Stock		—		22,910
	CVR Partners LP	Common Stock		—		12,620
	CVS Caremark Corp	Common Stock		—		1,079,025
	CVS Corp Del	Common Stock		—		31,036

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Cyber-Care Inc	Common Stock		—		—
	Cyberonics Inc	Common Stock		—		2,311
	Cyclacel Pharmaceuticals Inc	Common Stock		—		861
	Cytori Therapeutics Inc	Common Stock		—		2,100
	Cytosorbents Corp	Common Stock		—		975
	Cytrx Corp	Common Stock		—		10,292
	Dan River Inc	Common Stock		—		—
	Darling Intl Inc	Common Stock		—		3,208
	Daulton Cap Corp	Common Stock		—		35
	Daystar Technologies Inc	Common Stock		—		3
	Decisionpoint Sys	Common Stock		—		8
	Deckers Outdoor	Common Stock		—		18,122
	Deere & Co	Common Stock		—		75,723
	Delcath Systems Inc	Common Stock		—		1,689
	Dell Inc	Common Stock		—		18,030
	Denbury Res Inc	Common Stock		—		29,792
	Dendreon Corp	Common Stock		—		78,742
	Derma Sciences Inc	Common Stock		—		2,222
	Devon Energy Corp	Common Stock		—		1,043,182
	Devon Energy Corp	Common Stock		—		17,433
	Devry Inc	Common Stock		—		11,865
	Diamond Offshore Drilling Inc	Common Stock		—		1,019
	Diana Containerships Inc	Common Stock		—		42
	Diana Shipping Inc	Common Stock		—		1,676
	Digerati Technologies Inc	Common Stock		—		28
	Digital Angel Corp	Common Stock		—		639
	Discover Finl Svcs	Common Stock		—		22,745
	Discovery Laboratories Inc	Common Stock		—		80
	Disney Walt Co	Common Stock		—		103,912
	Divine Inc	Common Stock		—		—
	Dolby Laboratories Inc	Common Stock		—		4,400
	Dollar General Corp	Common Stock		—		6,790
	Dominion Resources Inc	Common Stock		—		37,051
	Doral Finl Corp	Common Stock		—		36
	Dow Chemical Co	Common Stock		—		43,700
	Downey Finl Corp	Common Stock		—		—
	Dryships Inc	Common Stock		—		8,962
	Du Pont	Common Stock		—		1,065,764
	Du Pont	Common Stock		—		12,009
	Duke Energy Corp	Common Stock		—		136,474
	Duke Realty Corp	Common Stock		—		61,722
	Duma Energy Corp	Common Stock		—		816
	Dunkin Brands Group	Common Stock		—		1,477,940
	Dunkin Brands Group	Common Stock		—		5,043
	Dynamic Materials Corp	Common Stock		—		22,893
	Dynegy Inc	Common Stock		—		4
	EMC Corp	Common Stock		—		25,047
	E Trade Finl Corp	Common Stock		—		6,641
	Eagle Bulk Shipping Inc	Common Stock		—		38

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Eastman Kodak Co	Common Stock		—		10,127
	Eaton Corp Plc	Common Stock		—		16,254
	Eb2B Commerce Inc	Common Stock		—		—
	Ebay Inc	Common Stock		—		13,463
	Ebay Inc	Common Stock		—		1,529,720
	Ecolocap Solutions Inc	Common Stock		—		3
	E-Commerce China Dangdang Inc	Common Stock		—		4,565
	Edap Tms S.A.	Common Stock		—		67,320
	Edwards Lifesciences Corp	Common Stock		—		19,529,718
	Edwards Lifesciences Corp	Common Stock		—		659,954
	Elan Corp Plc Adr	Common Stock		—		7,351
	Eldorado Gold Corp	Common Stock		—		38,640
	Eline Entertainment Group Inc	Common Stock		—		—
	EMC Corp	Common Stock		—		2,844,707
	Emcore Corp Com	Common Stock		—		4
	Emergent Biosolutions Inc	Common Stock		—		4,812
	Emerson Electric Co	Common Stock		—		7,229
	Emulex Corp Com	Common Stock		—		840
	Enbridge Energy Partners	Common Stock		—		2,790
	Enbridge Inc	Common Stock		—		4,332
	Encana Corp	Common Stock		—		736,598
	Encana Corp	Common Stock		—		15,913
	Endologix Inc	Common Stock		—		5,696
	Energy Conversion Devices Inc	Common Stock		—		—
	Energy Transfer Partners	Common Stock		—		55,144
	Energysolutions Inc	Common Stock		—		312
	Engility Hldgs Inc	Common Stock		—		116
	Enron Corp	Common Stock		—		—
	Ensco Plc	Common Stock		—		8,892
	Enterprise Products	Common Stock		—		77,956
	Entravision Communications Corp	Common Stock		—		249
	Entremed Inc Com	Common Stock		—		51
	EOG Resources Inc	Common Stock		—		1,232,015
	Epix Pharmaceuticals Inc	Common Stock		—		—
	Escrow CDC Liquidating Trust	Common Stock		—		—
	Estee Lauder Companies	Common Stock		—		2,230,765
	Evergreen Solar Inc	Common Stock		—		—
	Evolving Sys Inc	Common Stock		—		11,920
	Exelixis Inc	Common Stock		—		15,387
	Exelon Corp	Common Stock		—		36,601
	Exeter Resource Corp	Common Stock		—		4,840
	Expedia Inc	Common Stock		—		1,905
	Expeditors Intl	Common Stock		—		12,038
	Express Scripts Hldg Co	Common Stock		—		5,400
	Express Scripts Inc	Common Stock		—		2,196,938
	Exxon Mobil Corp	Common Stock		—		75,330
	Exxon Mobil Corp	Common Stock		—		1,995,633
	Facebook Inc	Common Stock		—		1,543,788
	Facebook Inc	Common Stock		—		161,956

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Fairpoint Communications Inc	Common Stock		—		—
	Family Dollar Stores Inc	Common Stock		—		743,251
	Family Dollar Stores Inc	Common Stock		—		3,350
	Fastenal Co	Common Stock		—		6,998
	Federal Natl Mtg Assn	Common Stock		—		5,701
	Finisar Corp Com New	Common Stock		—		4,073
	First American Financial Corp	Common Stock		—		1,205
	First China Pharmaceutical Group Inc	Common Stock		—		2,640
	First Majestic Silver Corp	Common Stock		—		34,929
	First Physicians Cap Group Inc	Common Stock		—		—
	First Solar Inc	Common Stock		—		26,690
	Flagstar Bancorp Inc	Common Stock		—		7,760
	Flexsteel Inds Inc	Common Stock		—		4,290
	Flextronics International	Common Stock		—		6,210
	Flextronics Ltd	Common Stock		—		1,082,952
	Fluor Corp	Common Stock		—		14,913
	Focus Gold Corp	Common Stock		—		10
	Food Technology Svc Inc	Common Stock		—		2,505
	Ford Motor Co	Common Stock		—		212,049
	Ford Motor Co	Common Stock		—		630,440
	Fortress Invt Group Llc	Common Stock		—		2,195
	Forward Inds	Common Stock		—		148
	Fossil Inc	Common Stock		—		1,862
	Foster Wheeler Ag	Common Stock		—		17,024
	France Telecom	Common Stock		—		11,050
	Franklin Res Inc	Common Stock		—		33,914
	Freddie Mac	Common Stock		—		5,237
	Freeport Mcmoran Copper & Gold Inc.	Common Stock		—		116,349
	Fresenius Kabi Pharmaceuticals Hldg	Common Stock		—		—
	Frontier Communications Corp	Common Stock		—		6,101
	Fuel Sys Solutions Inc	Common Stock		—		1,839
	Fuel Tech Inc	Common Stock		—		328
	Fusion-Io	Common Stock		—		229
	Futuremedia Plc	Common Stock		—		—
	Fx Energy Inc	Common Stock		—		575
	Gas Nat Inc	Common Stock		—		2,799
	Geeknet Inc	Common Stock		—		3,590
	Generac Hldgs Inc	Common Stock		—		3,431
	General Dynamics Corp	Common Stock		—		10,436
	General Electric Co	Common Stock		—		1,084,029
	General Electric Co	Common Stock		—		336,418
	General Electric Co	Common Stock		—		1,760,770
	General Mills Inc	Common Stock		—		65,504
	General Steel Hldgs Inc	Common Stock		—		891
	Generex Biotechnology Corp	Common Stock		—		163
	Genetic Technologies Ltd	Common Stock		—		22
	Geopharma Inc	Common Stock		—		3
	Geron Corp	Common Stock		—		1,410
	Gevo Inc	Common Stock		—		10,683

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Giant Interactive Group Inc	Common Stock		—		1,976
	Gilead Sciences	Common Stock		—		507,711
	Gilead Sciences	Common Stock		—		1,597,186
	Gilead Sciences	Common Stock		—		37,827
	GMX Res Inc	Common Stock		—		100
	Gold Amern Mng Corp	Common Stock		—		50
	Gold Fields Ltd	Common Stock		—		4,996
	Goldcorp Inc	Common Stock		—		3,686
	Goldman Sachs Group Inc	Common Stock		—		2,178,647
	Goldman Sachs Group Inc	Common Stock		—		74,552
	Goodyear Tire & Rubber Co	Common Stock		—		4,764
	Google Inc	Common Stock		—		1,155,802
	Google Inc	Common Stock		—		5,032,993
	Google Inc	Common Stock		—		118,840
	GPO Aeroportuario Del Sureste Sab	Common Stock		—		2,394
	Grace W R & Co	Common Stock		—		20,169
	Grand Pacaraima Gold Corp	Common Stock		—		2
	Graphic Packaging Hldg Co	Common Stock		—		1,292
	Great Basin Gold	Common Stock		—		420
	Great Panther Silver Limited	Common Stock		—		7,650
	Green Earth Technologies Inc	Common Stock		—		3,900
	Green Mtn Coffee Roasters Inc	Common Stock		—		24,391
	Greenhunter Energy	Common Stock		—		—
	Groupon Inc	Common Stock		—		292
	Gsi Technology Inc	Common Stock		—		3,135
	Guess? Inc	Common Stock		—		883
	Guggenheim	Common Stock		—		14,116
	Halliburton Co	Common Stock		—		1,162,976
	Halliburton Co	Common Stock		—		18,573
	Halozyme Therapeutics Inc	Common Stock		—		134,529
	Hansen Med Inc	Common Stock		—		11,960
	Hanwha Solarone Company Ltd	Common Stock		—		10
	Harley Davidson Inc	Common Stock		—		4,883
	Hartford Finl Svcs Group	Common Stock		—		2,963
	Hasbro Inc	Common Stock		—		4,859
	Hatteras Finl Corp	Common Stock		—		5,113
	HCA Hldgs Inc	Common Stock		—		15,085
	HCP Inc	Common Stock		—		20,056
	Headwaters Inc	Common Stock		—		10,700
	Health Care Reit Inc	Common Stock		—		6,129
	Healthwarehouse.Com	Common Stock		—		106
	Heckmann Corp	Common Stock		—		27,001
	Hecla Mining Co	Common Stock		—		5,830
	Helix Energy Solutions Group Inc	Common Stock		—		4,128
	Hellenic Telecomm Org	Common Stock		—		296
	Hemisperix Bioprarma Inc	Common Stock		—		226
	Henry Jack & Associates Inc	Common Stock		—		7,302
	Herbalife Ltd	Common Stock		—		7,313
	Hercules Offshore Inc	Common Stock		—		25,297

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Hermes International	Common Stock		—		3,580
	Hewlett-Packard Co	Common Stock		—		20,020
	Hillenbrand Inc	Common Stock		—		12,820
	Hollyfrontier Corporation	Common Stock		—		13,965
	Hologic Inc	Common Stock		—		2,001
	Home Depot Inc	Common Stock		—		149,059
	Home Solutions Amer Inc	Common Stock		—		—
	Honeywell International Inc	Common Stock		—		2,083,948
	Honeywell International Inc	Common Stock		—		19,041
	Horizon Lines Inc	Common Stock		—		60
	Hospira Inc	Common Stock		—		312
	Houston Amern Energy Corp	Common Stock		—		10,340
	Hovnanian Enterprise Inc	Common Stock		—		27,132
	Howard Hughes Corp	Common Stock		—		1,899
	HSBC Holdings Plc	Common Stock		—		33,024
	HSN Inc	Common Stock		—		661
	Hugoton Rty Tr Tex	Common Stock		—		8,906
	Huntington Bancshares Inc	Common Stock		—		4,359
	Hydrogenics Corporation	Common Stock		—		487
	Hyperdynamics Corp	Common Stock		—		5,681
	Iac / Interactivecrp	Common Stock		—		1,465
	IBM	Common Stock		—		2,486,013
	ICG Group Inc	Common Stock		—		857
	Idearc Inc	Common Stock		—		—
	Igo Inc Com	Common Stock		—		14
	Illinois Tool Works	Common Stock		—		3,864
	Illumina Inc	Common Stock		—		5,559
	Illumina Inc	Common Stock		—		275,512
	Imaging3 Inc	Common Stock		—		1,352
	Imation Corp	Common Stock		—		467
	Imax Corp	Common Stock		—		4,496
	Immunogen Inc	Common Stock		—		6,375
	Immunomedics Inc	Common Stock		—		2,920
	Incyte Genomics Inc	Common Stock		—		48,086
	Indevus Pharmaceuticals Inc	Common Stock		—		—
	Inditex Unspon	Common Stock		—		3,037,975
	Indymac Bancorp Inc	Common Stock		—		—
	Infinera Corp	Common Stock		—		25,512
	Infosys Technologies Limited	Common Stock		—		2,115
	Ingles Mkts Inc	Common Stock		—		21,782
	Ingles Mkts Inc	Common Stock		—		8,195
	Inplay Technologies Inc	Common Stock		—		—
	Insmed Incorporated	Common Stock		—		1,659
	Insys Therapeutics Inc	Common Stock		—		248
	Intel Corp	Common Stock		—		124,730
	Intermune Inc	Common Stock		—		22,578
	Interoil Corp	Common Stock		—		21,101
	Interval Leisure Group Inc	Common Stock		—		233
	Intl Business Machine	Common Stock		—		61,577

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Intl Fuel Tech Inc	Common Stock		—		473
	Intl Speedway	Common Stock		—		15,013
	Intuit	Common Stock		—		1,369,282
	Intuitive Surgical Inc	Common Stock		—		2,452
	Invensense Inc	Common Stock		—		6,699
	Invesco Ltd	Common Stock		—		1,120,702
	Invesco Van Kampen	Common Stock		—		20,953
	Invivo Therapeutics Hldgs Corp	Common Stock		—		1,740
	Invo Bioscience Inc	Common Stock		—		12
	IPG Photonics Corp	Common Stock		—		23,794
	Ironwood Gold Corp	Common Stock		—		642
	Isc8 Inc	Common Stock		—		60
	Isoray Inc	Common Stock		—		780
	Ivanhoe Energy	Common Stock		—		4,089
	Ja Solar Holdings Co	Common Stock		—		1,601
	Jabil Circuit Inc	Common Stock		—		9,697
	James Riv Coal Co	Common Stock		—		6,420
	JDS Uniphase Corp	Common Stock		—		2,525
	Jensen Portfolio, Inc.	Common Stock		—		71,410
	Jetblue Awys Corp	Common Stock		—		12,298
	John Bean Technologies Corp	Common Stock		—		404
	Johnson & Johnson	Common Stock		—		140,096
	Johnson & Johnson	Common Stock		—		2,017,824
	Johnson Controls Inc	Common Stock		—		1,385,420
	Johnson Controls Inc	Common Stock		—		11,533
	Joy Global Inc	Common Stock		—		4,784
	JP Morgan Chase & Co	Common Stock		—		7,692
	JP Morgan Chase & Co	Common Stock		—		45,354
	JP Morgan Chase & Co	Common Stock		—		1,843,151
	Juniper Networks Inc	Common Stock		—		33,439
	K V Pharmaceutical Co	Common Stock		—		37
	Kansas City Southern	Common Stock		—		701,765
	KB Home	Common Stock		—		28,523
	Keegan Res Inc	Common Stock		—		19,800
	Keryx Biopharmaceuticals Inc	Common Stock		—		13,703
	Keycorp New	Common Stock		—		8,420
	Kilroy Realty Corp	Common Stock		—		3,112
	Kimberly Clark Corp	Common Stock		—		33,772
	Kinder Morgan Energy Partners	Common Stock		—		231,453
	Kinder Morgan Mgmt Llc	Common Stock		—		14,232
	Kinross Gold Corp	Common Stock		—		19,440
	KMA Global Solutions Intl Inc	Common Stock		—		42
	Knightsbridge Tank	Common Stock		—		5,093
	Kobex Minerals Inc	Common Stock		—		485
	Kodiak Oil & Gas Corp	Common Stock		—		8,850
	Kohl’s Corp	Common Stock		—		49,740
	Kraft Foods Group Inc	Common Stock		—		38,149
	Krispy Kreme Doughnuts Inc	Common Stock		—		9,380
	Kronos Worldwide Inc	Common Stock		—		81

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	L-3 Communications Hldgs Inc	Common Stock		—		2,828
	Laboratory Corp of America Hldgs	Common Stock		—		17,324
	Las Vegas Sands Corp	Common Stock		—		9,952
	LDK Solar Co Ltd	Common Stock		—		1,106
	Leap Wireless Intl Inc	Common Stock		—
	Legacy Resvs LP	Common Stock		—		2,380
	Lehman Brothers Holdings Inc	Common Stock		—		—
	Lender Processing Svcs Inc	Common Stock		—		4,924
	Lennox Intl Inc	Common Stock		—		13,130
	Level 3 Communications Inc	Common Stock		—		7,696
	Life Technologies Corp	Common Stock		—		1,080,777
	Life Technologies Corp	Common Stock		—		4,903
	Lifeline Biotechnologies Inc	Common Stock		—		—
	Lilly Eli & Co	Common Stock		—		2,959
	Limelight Networks Inc	Common Stock		—		1,110
	Linkedin Corp	Common Stock		—		2,107,772
	Linn Co	Common Stock		—		4,715
	Linn Energy Llc	Common Stock		—		107,515
	Linux Gold Corp	Common Stock		—		95
	Lithium Expl Group Inc	Common Stock		—		2,144
	Live Nation Entertainment Inc	Common Stock		—		158
	Lloyds Banking Group	Common Stock		—		6,400
	Lone Pine Resources Inc	Common Stock		—		1,230
	Loral Space & Communications Ltd	Common Stock		—		—
	Lowes	Common Stock		—		375,304
	Lowes	Common Stock		—		38,840
	Lowes	Common Stock		—		817,251
	LPBP Inc	Common Stock		—		—
	LSI Logic Corp	Common Stock		—		643
	Lululemon Athletica	Common Stock		—		1,768,368
	Lumber Liquidators Hldgs Inc	Common Stock		—		17,751
	Lynas Corporation NPV	Common Stock		—		298
	Lyondellbasell Industries NV Com	Common Stock		—		28,545
	M 2003 Plc	Common Stock		—		—
	M D U Res Group Inc	Common Stock		—		2,174
	Macquarie Infrastructure Co	Common Stock		—		22,780
	Macys Inc	Common Stock		—		19,510
	Mahanagar Tel Nigam Ltd	Common Stock		—		179
	Main Str Cap Corp	Common Stock		—		40,375
	Mako Surgical Corp	Common Stock		—		2,570
	Mandalay Digital Group Inc	Common Stock		—		20
	Manhattan Scientific Inc	Common Stock		—		4,272
	Manitowoc Inc	Common Stock		—		2,979
	Mannkind Corp	Common Stock		—		24,255
	Marathon Oil Corp	Common Stock		—		53,287
	Marathon Oil Corp	Common Stock		—		1,033,926
	Marathon Petroleum Corp	Common Stock		—		45,328
	Markel Corp Hldg Co	Common Stock		—		36,407
	Marsh & Mclennan Cos	Common Stock		—		1,014,342

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Marvell Tech Group	Common Stock		—		3,680
	Mastercard Inc	Common Stock		—		39,302
	Mastercard Inc	Common Stock		—		4,699,915
	McDonalds Corp	Common Stock		—		905,895
	McDonalds Corp	Common Stock		—		48,299
	McKesson Corp	Common Stock		—		1,359,589
	Medclean Technologies Inc	Common Stock		—		—
	Medicines Co	Common Stock		—		11,985
	Medivation Inc	Common Stock		—		1,739
	Medtronic Inc	Common Stock		—		9,310
	Meetme Inc	Common Stock		—		17,450
	Mellanox Technologies Ltd	Common Stock		—		11,876
	Mercadolibre Inc	Common Stock		—		2,362
	Merck & Co Inc	Common Stock		—		90,962
	Meru Networks	Common Stock		—		1,590
	Metabolix Inc	Common Stock		—		740
	Metlife Inc	Common Stock		—		460,264
	Metlife Inc	Common Stock		—		3,697
	Mgic Invst Corp	Common Stock		—		670
	MGM Mirage	Common Stock		—		12,455
	Michael Kors Holdings Ltd	Common Stock		—		5,103
	Micro Imaging Technology Inc	Common Stock		—		60
	Microsoft Corp	Common Stock		—		80,924
	Microsoft Corp	Common Stock		—		682,317
	Microsoft Corp	Common Stock		—		1,137,635
	Microvision Inc	Common Stock		—		4,775
	Miller Herman Inc	Common Stock		—		2,146
	Mindspeed Technologies Inc	Common Stock		—		28
	Mirant Corp	Common Stock		—		—
	Miravant Medical Technology	Common Stock		—		—
	Mitek Sys Inc	Common Stock		—		3,210
	Modern Energy Corp	Common Stock		—		—
	Molecular Insight Pharmaceuticals Inc	Common Stock		—		—
	Molycorp Inc	Common Stock		—		15,293
	Momenta Pharmaceuticals Inc	Common Stock		—		2,334
	Mondelez International	Common Stock		—		1,316,153
	Mondelez International	Common Stock		—		47,749
	Monsanto Co	Common Stock		—		1,560,860
	Monsanto Co	Common Stock		—		3,069,566
	Monsanto Co	Common Stock		—		14,155
	Monster Beverage Corp	Common Stock		—		2,536
	Morgan Stanley	Common Stock		—		1,506,857
	Morgan Stanley Dean Witter & Co	Common Stock		—		7,648
	Mosaic Co	Common Stock		—		55,921
	Mosaic Co	Common Stock		—		3,425
	Motorola Solutions Inc	Common Stock		—		3,953
	Motricity Inc	Common Stock		—		21
	Multiband Corp	Common Stock		—		330
	Nanogen Inc	Common Stock		—		8

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Nanosphere Inc	Common Stock		—		216
	National Bank of Greece	Common Stock		—		716
	National Grid	Common Stock		—		11,488
	National Oilwell	Common Stock		—		617,570
	Navidea Biopharmaceuticals Inc	Common Stock		—		4,953
	Navios Maritime Holdings Inc	Common Stock		—		20,412
	Navios Maritime Partners	Common Stock		—		6,140
	Neon Communications Inc	Common Stock		—		—
	Neostem Inc	Common Stock		—		25,419
	Nestle S A	Common Stock		—		6,511
	Netapp Inc	Common Stock		—		2,684
	Netgear Inc	Common Stock		—		3,943
	Netlist Inc	Common Stock		—		740
	Neutral Tandem Inc	Common Stock		—		1,568
	New Centy Finl Corp	Common Stock		—		—
	New Gold Inc	Common Stock		—		1,302
	New Ireland	Common Stock		—		6,445
	Newcastle Invt Corp	Common Stock		—		36,456
	Newfield Exploration Co	Common Stock		—		18,746
	Newmont Mining	Common Stock		—		518,200
	Newmont Mining	Common Stock		—		46,808
	Nextera Energy Inc	Common Stock		—		36,971
	Nike Inc	Common Stock		—		2,981,612
	Nike Inc	Common Stock		—		16,759
	Nokia Corp	Common Stock		—		16,020
	Noranda Alum Hldg Corp	Common Stock		—		12,226
	Nordic American Tanker Shipping Ltd	Common Stock		—		26,250
	Nortel Networks Corp	Common Stock		—		—
	North American Palladium	Common Stock		—		2,600
	Northern Oil & Gas Inc	Common Stock		—		7,653
	Northfield Laboratories Inc	Common Stock		—		—
	Northstar Rlty Fin Corp	Common Stock		—		8,683
	Novartis AG	Common Stock		—		1,112,629
	Novartis AG	Common Stock		—		1,959,603
	Novartis AG	Common Stock		—		41,430
	Novatel Wireless Inc	Common Stock		—		1,596
	Novavax Inc	Common Stock		—		1,512
	Novelos Therapeutics Inc	Common Stock		—		39
	Novo Nordisk	Common Stock		—		14,476
	Novo Nordisk	Common Stock		—		2,250,522
	NPS Pharmaceuticals Inc	Common Stock		—		18,200
	NRG Energy Inc	Common Stock		—		8,828
	Nucor Corp	Common Stock		—		23,149
	Nuveen Diversified Commodity	Common Stock		—		4,273
	Nvidia Corp	Common Stock		—		23,301
	Nxstage Med Inc	Common Stock		—		4,331
	O Reilly Automotive Inc	Common Stock		—		7,869
	Occidental Petroleum Corp	Common Stock		—		2,735
	Occidental Petroleum Corp	Common Stock		—		764,071

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Ocean Rig Udw Inc	Common Stock		—		717
	Oclaro Inc	Common Stock		—		425
	Oilsands Quest Inc	Common Stock		—		7
	Olin Corp	Common Stock		—		2,438
	Omega Navigation Enterprises Inc	Common Stock		—		80
	Oncogenex Pharmaceuticals Inc	Common Stock		—		223
	Oncolytics Biotech Inc	Common Stock		—		608,776
	Oneok Partners LP	Common Stock		—		8,099
	Optigenex Inc	Common Stock		—		5
	Oracle Corp.	Common Stock		—		44,674
	Orchard Supply Hardware Stores Corp	Common Stock		—		67
	Orexigen Therapeutics Inc	Common Stock		—		18,375
	Origin Agritech Limited	Common Stock		—		4,170
	Osiris Therapeutics Inc	Common Stock		—		13,470
	Otelco Inc	Common Stock		—		2,740
	Owens Corning	Common Stock		—		36,990
	Owens Illinois Inc	Common Stock		—		613,306
	Owens Illinois Inc	Common Stock		—		842,245
	Oxford Resource Partners LP	Common Stock		—		2,287
	Oxigene Inc	Common Stock		—		43
	Pace Oil & Gas Ltd	Common Stock		—		261
	Pacific Ethanol Inc	Common Stock		—		1,589
	Palatin Technologies Inc	Common Stock		—		30
	Pan American Silver Corp	Common Stock		—		10,329
	Panacos Pharmaceuticals Inc	Common Stock		—		1
	Pandora Media Inc	Common Stock		—		5,508
	Panera Bread Co	Common Stock		—		696,530
	Patriot Coal Corp	Common Stock		—		412
	Patterson-Uti Energy Inc	Common Stock		—		11,178
	Pay Chest Inc	Common Stock		—		—
	Paychex Inc	Common Stock		—		20,499
	PDI Inc	Common Stock		—		760
	PDL Biopharma Inc	Common Stock		—		10,560
	Peabody Energy Corp	Common Stock		—		2,661
	Pembina Pipeline Corporation	Common Stock		—		112
	Penn West Petroleum Ltd	Common Stock		—		5,688
	Pennymac Mortgage Investment	Common Stock		—		33,979
	Penson Worldwide Inc	Common Stock		—		1,013
	Pentair Ltd	Common Stock		—		246
	Pepco Hldgs Inc	Common Stock		—		58,359
	Pepsico Inc	Common Stock		—		51,545
	Permian Basin Rty Tr	Common Stock		—		4,291
	Perrigo Co	Common Stock		—		1,006,418
	Pershing Gold Corp	Common Stock		—		4,591
	Petmedexpress Inc	Common Stock		—		1,320
	Petrochina Co Ltd	Common Stock		—		1,725
	Petroleo Brasileiro SA Petrobras	Common Stock		—		15,797
	Petsmart Inc	Common Stock		—		4,784
	Pfizer Inc	Common Stock		—		142,862

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Pfizer Inc	Common Stock		—		1,020,355
	Pfizer Inc	Common Stock		—		2,406,008
	Pharmacyclics Inc	Common Stock		—		8,667
	Pharmos Corp	Common Stock		—		1
	Philip Morris Intl Inc	Common Stock		—		129,828
	Phillips 66	Common Stock		—		65,825
	Pilgrims Pride Corp	Common Stock		—		38,191
	Pilot Gold Inc Com	Common Stock		—		4,813
	Pioneer Energy Svcs Corp	Common Stock		—		726
	Pitney Bowes Inc	Common Stock		—		7,448
	Platinum Studios Inc	Common Stock		—		—
	Plum Creek Timber Co Inc	Common Stock		—		13,311
	Pluristem Therapeutics Inc	Common Stock		—		1,423
	PMC-Sierra Inc	Common Stock		—		3,647
	PMI Group Inc	Common Stock		—		136
	Polymedix Inc	Common Stock		—		1,700
	Polymet Mining Corp	Common Stock		—		15,144
	Pop3 Media Corp	Common Stock		—		—
	Portfolio Recovery Assocs Inc	Common Stock		—		3,313
	Positiveid Corp	Common Stock		—		190
	Potash Corp Sask Inc	Common Stock		—		227,024
	Power 3 Med Prods Inc	Common Stock		—		—
	Powerwave Technologies Inc	Common Stock		—		31
	PPG Industries	Common Stock		—		54,140
	Prana Biotechnology Ltd	Common Stock		—		12,100
	Praxair Inc	Common Stock		—		3,047
	Precision Castparts Corp	Common Stock		—		2,273
	Precision Castparts Corp	Common Stock		—		3,621,993
	Priceline.com Inc	Common Stock		—		1,929,820
	Pricesmart Inc	Common Stock		—		1,164
	Primerica Inc	Common Stock		—		3,301
	Primero Mining Corp	Common Stock		—		3,235
	Pristine Solutions Inc	Common Stock		—		75
	Procter & Gamble Co	Common Stock		—		115,229
	Procter & Gamble Co	Common Stock		—		891,629
	Prologis Inc	Common Stock		—		369
	Prospect Energy Corp	Common Stock		—		51,745
	Prothena Corp Plc	Common Stock		—		125
	Proxim Wireless Corp	Common Stock		—		44
	Prudential Finl Inc	Common Stock		—		13,333
	Qihoo 360 Technology Co	Common Stock		—		4,454
	QR Energy LP	Common Stock		—		16,999
	Qualcomm Inc	Common Stock		—		43,979
	Qualcomm Inc	Common Stock		—		1,215,863
	Quality Systems	Common Stock		—		23,930
	Quantum Fuel Sys Technologies Worldwide Inc	Common Stock		—		715
	Quest Diagnostics Inc	Common Stock		—		14,568
	Rackspace Hosting	Common Stock		—		1,250,812
	Radian Group Inc	Common Stock		—		3,115

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Radient Pharmaceuticals Corp	Common Stock		—		—
	Ralph Lauren Corp	Common Stock		—		2,154,906
	Rambus Inc	Common Stock		—		4,870
	Ramp Corp	Common Stock		—		—
	Randgold Res Ltd	Common Stock		—		4,961
	Ranger Equity Bear	Common Stock		—		7,543
	Rayonier Inc	Common Stock		—		20,214
	Raystream Inc	Common Stock		—		—
	Raytheon Co	Common Stock		—		2,920
	Realty Income Corp (Maryland)	Common Stock		—		8,093
	Red Hat Inc	Common Stock		—		1,888,540
	Regions Finl Corp	Common Stock		—		3,804
	Reliance Steel and Aluminum Co	Common Stock		—		6,210
	Rentech Nitrogen Partners	Common Stock		—		10,570
	Repligen Corp	Common Stock		—		2,198
	Republic Service Enterprise	Common Stock		—		935,495
	Research In Motion Ltd	Common Stock		—		14,007
	Resource Cap Corp	Common Stock		—		118,202
	Retail Opportunity Invts Corp	Common Stock		—		7,955
	Reynolds Amern Inc	Common Stock		—		56,052
	Ricebran Technologies	Common Stock		—		1,134
	Rio Tinto Plc	Common Stock		—		3,023
	Rock-Tenn Co	Common Stock		—		10,487
	Rockwell Automation Inc	Common Stock		—		33,596
	Roper Industries	Common Stock		—		947,052
	Rosetta Stone Inc	Common Stock		—		1,234
	Royal Bk Scotland Group Plc	Common Stock		—		540
	Royal Dutch Shell	Common Stock		—		6,895
	Royal Gold Inc	Common Stock		—		16,272
	Rubicon Minerals Corp	Common Stock		—		47,175
	Salesforce.com Inc	Common Stock		—		2,571,259
	Samson Oil & Gas Ltd	Common Stock		—		770
	San Gold Corporation	Common Stock		—		555
	San Juan Basin	Common Stock		—		6,454
	Sandisk Corp	Common Stock		—		17,400
	Sandridge Energy Inc	Common Stock		—		40,621
	Sanmina Corp	Common Stock		—		2,214
	Sanofi	Common Stock		—		10,177
	Sanofi	Common Stock		—		1,127,558
	Santarus Inc	Common Stock		—		5,490
	SAP AG	Common Stock		—		8,038
	Sarepta Therapeutics Inc	Common Stock		—		133,515
	Satcon Technology Corp	Common Stock		—		5
	Savient Pharmaceuticals Inc	Common Stock		—		1,050
	Schlumberger Ltd	Common Stock		—		1,304,470
	Schlumberger Ltd	Common Stock		—		70,759
	Sciclone Pharmaceutical Inc	Common Stock		—		1,509
	Seadrill Ltd	Common Stock		—		41,904
	Seagate Technology Plc	Common Stock		—		31,162

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Sears Canada Inc	Common Stock		—		858
	Sears Hldgs Corp	Common Stock		—		8,272
	Seattle Genetics Inc	Common Stock		—		2,317
	Sector Spdr Tr	Common Stock		—		7,030
	Sequenom Inc	Common Stock		—		7,065
	Ship Finance International Limited	Common Stock		—		473
	Shire Plc	Common Stock		—		2,417,184
	Silicon Image Inc	Common Stock		—		1,488
	Silver Wheaton Corp	Common Stock		—		41,652
	Silvercorp Metals Inc	Common Stock		—		35,840
	Sirius Xm Radio Inc	Common Stock		—		262,669
	Skyworks Solutions Inc	Common Stock		—		1,726
	SMF Energy Corp	Common Stock		—		580
	Smith & Wesson Hldg Corp	Common Stock		—		4,220
	Smurfit Stone Container	Common Stock		—		—
	Socket Mobile Inc	Common Stock		—		22,482
	Solar Cap Ltd	Common Stock		—		10,637
	Sonic Corp	Common Stock		—		10,410
	Sony Corp	Common Stock		—		34
	Sothebys Hldgs Inc	Common Stock		—		1,345
	Southern Co	Common Stock		—		228,625
	Southern Copper Corp	Common Stock		—		44,405
	Southwest Airlines Co	Common Stock		—		973,762
	Southwest Airlines Co	Common Stock		—		8,204
	Southwestern Energy Co	Common Stock		—		842,935
	Spectra Energy Corp	Common Stock		—		41,333
	Spectranetics Corp	Common Stock		—		34,266
	Spirit Aerosystems Hldgs Inc	Common Stock		—		1,273
	Splunk Inc	Common Stock		—		638,497
	Spongetech Delivery Sys Inc	Common Stock		—		—
	Sports Concepts Inc Com	Common Stock		—		—
	Sprint Corp	Common Stock		—		58,259
	Sprott Physical Silver	Common Stock		—		49,135
	St Jude Medical Inc	Common Stock		—		7,501
	ST Microelectronics	Common Stock		—		4,401
	Standard Pkg Corp	Common Stock		—		6,597
	Standex Intl Corp	Common Stock		—		5,129
	Stanley Black & Decker	Common Stock		—		982,437
	Star Bulk Carriers Corp	Common Stock		—		99
	Star Scientific Inc	Common Stock		—		3,216
	Starbucks Corp	Common Stock		—		5,363
*	State Street Corp	Common Stock		—		12,031
*	State Street Corp	Common Stock		—		1,234,806
	Statoil Asa	Common Stock		—		7,854
	Steelcase Inc	Common Stock		—		6,370
	Stem Cell Innovations Inc	Common Stock		—		—
	Stemcells Inc	Common Stock		—		16,512
	Sterlite Inds	Common Stock		—		620
	Stevia Corp	Common Stock		—		78

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Stryker Corp	Common Stock		—		1,754
	Sturm Ruger & Co Inc	Common Stock		—		12,896
	Sulphco Inc	Common Stock		—		6
	Suncor Energy	Common Stock		—		2,233
	Sunesis Pharmaceuticals Inc	Common Stock		—		6,997
	Suntech Pwr Hldgs Co	Common Stock		—		1,951
	Suntrust Banks Inc	Common Stock		—		6,419
	Surebeam Corp	Common Stock		—		—
	Syntax Brillian Corp	Common Stock		—		—
	Sysco Corp	Common Stock		—		606,512
	Sysco Corp	Common Stock		—		5,643
	Taiwan Semiconductor Manufacturing	Common Stock		—		6,898
	Talon Therapeutics Inc	Common Stock		—		7,999
	Tangoe Inc Com	Common Stock		—		11,870
	Target Corp	Common Stock		—		5,917
	Taseko Mines Ltd	Common Stock		—		48,267
	Taser International Inc	Common Stock		—		21,456
	Tata Mtrs Ltd	Common Stock		—		21,408
	Te Connectivity Ltd	Common Stock		—		817
	Teck Cominco Ltd	Common Stock		—		7,292
	Templeton Global	Common Stock		—		1,888
	Tencent Holdings Ltd	Common Stock		—		696,698
	Tenet Healthcare Corp	Common Stock		—		8,118
	Teradata Corp	Common Stock		—		671,714
	Terex Corp	Common Stock		—		2,108
	Terra Inventions Corp	Common Stock		—		3
	Tesco	Common Stock		—		28,674
	Tesla Motors Inc	Common Stock		—		3,387
	Tesoro Pete Corp	Common Stock		—		1,410
	Teva Pharmaceutical Inds Ltd	Common Stock		—		47,004
	Texas Instruments Inc	Common Stock		—		1,222,101
	Texas Instruments Inc	Common Stock		—		2,193,671
	TG Therapeutics Inc	Common Stock		—		4
	The Wendys Company	Common Stock		—		7,445
	Theragenics Corp	Common Stock		—		1,590
	Thermo Fisher Scientific	Common Stock		—		913,228
	Thomas Pptys Group Inc	Common Stock		—		4,439
	Thompson Creek Metals Co Inc	Common Stock		—		2,386
	Thornburg Mtg Inc	Common Stock		—		—
	Threshold Pharmaceuticals Inc	Common Stock		—		211
	Tibco Software Inc	Common Stock		—		1,099
	Tiffany & Co	Common Stock		—		8,644
	Time Warner Cable Inc	Common Stock		—		3,790
	Time Warner Inc	Common Stock		—		840,712
	Time Warner Inc	Common Stock		—		2,637,851
	Time Warner Inc	Common Stock		—		7,557
	Titan Iron Ore Corp	Common Stock		—		4,576
	Titan Medical Inc	Common Stock		—		23,778
	TJX Companies	Common Stock		—		2,474,651

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Torch Energy Royalty Trust	Common Stock		—		95
	Torchlight Energy Res Inc	Common Stock		—		68,680
	Total	Common Stock		—		9,006
	Tousa Inc	Common Stock		—		4
	Toyota Motor Corp	Common Stock		—		28,277
	Transcanada Corp	Common Stock		—		9,464
	Transmeridian Expl Inc	Common Stock		—		—
	Transmontaigne Partners LP	Common Stock		—		7,594
	Transocean Ltd	Common Stock		—		30,520
	Transwitch Corp	Common Stock		—		732
	Travelers Cos Inc	Common Stock		—		1,652
	Tree Com Inc	Common Stock		—		36
	Trimedyne Inc	Common Stock		—		800
	Tripadvisor Inc	Common Stock		—		1,300
	TRW Automotive Hldgs Corp	Common Stock		—		5,361
	Turkcell Iletisim Hizmet	Common Stock		—		918
	Turkish Invt	Common Stock		—		8,503
	Tyco International Ltd	Common Stock		—		644
	U S Shipping Partner	Common Stock		—		—
	UAL Corp	Common Stock		—		—
	Ultra Petroleum Corp	Common Stock		—		10,334
	Unilever Plc	Common Stock		—		3,305
	Union Pacific Corp	Common Stock		—		30,469
	Union Pacific Corp	Common Stock		—		2,280,554
	Uniroyal Tech Corp	Common Stock		—		—
	United Parcel Service	Common Stock		—		20,575
	United States Natural Gas Fund	Common Stock		—		94,387
	United States Steel Corp	Common Stock		—		60,820
	United Sts Gasoline	Common Stock		—		5,844
	United Technologies Corp	Common Stock		—		11,230
	United Technologies Corp	Common Stock		—		2,132,848
	UnitedHealth Group	Common Stock		—		1,130,131
	UnitedHealth Group	Common Stock		—		1,347,213
	UnitedHealth Group	Common Stock		—		1,523,803
	Universal Display Corp	Common Stock		—		5,893
	Universal Ins Hldgs Inc	Common Stock		—		9,487
	US Airways Group Inc	Common Stock		—		6,750
	US Bancorp	Common Stock		—		6,536
	Usec Inc	Common Stock		—		398
	Valero Energy Corp	Common Stock		—		18,812
	Vanguard Nat Res LLC	Common Stock		—		18,562
	Vasco Data Security Intl	Common Stock		—		4,357
	Vaso Active Pharmaceuticals Inc	Common Stock		—		—
	Velatel Global Communications Inc	Common Stock		—		11
	Venaxis Inc Com	Common Stock		—		69
	Ventas Inc	Common Stock		—		4,559
	Veolia Environnement	Common Stock		—		6,120
	Verenium Corp	Common Stock		—		89
	Verisign Inc	Common Stock		—		388

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Verizon Communications	Common Stock		—		262,874
	Vertex Pharmaceuticals Inc	Common Stock		—		1,790,981
	Vertex Pharmaceuticals Inc	Common Stock		—		11,313
	VF Corp	Common Stock		—		9,881
	VG Life Sciences Inc	Common Stock		—		5
	Via Networks Inc	Common Stock		—		—
	Via Pharmaceuticals Inc	Common Stock		—		—
	Viacom Inc	Common Stock		—		1,760,287
	Viragen Inc	Common Stock		—		—
	Virexx Med Corp	Common Stock		—		—
	Viropharma Inc	Common Stock		—		2,276
	Viropro Inc	Common Stock		—		8,108
	Virtual Piggy Inc	Common Stock		—		100,300
	Visa Inc	Common Stock		—		2,285,490
	Visteon Corp	Common Stock		—		5,382
	Vivus Inc	Common Stock		—		6,710
	VMWare Inc	Common Stock		—		2,160,879
	VMWare Inc	Common Stock		—		16,004
	Vodafone Group Plc	Common Stock		—		9,068
	Vodafone Inc	Common Stock		—		1,896,683
	Volkswagen Ag	Common Stock		—		1,717
	Vonage Hldgs Corp	Common Stock		—		1,600
	W & T Offshore Inc	Common Stock		—		4,809
	Walgreen Company	Common Stock		—		81,854
	Walmart Stores Inc	Common Stock		—		7,318
	Walt Disney	Common Stock		—		1,796,198
	Waste Management Inc	Common Stock		—		9,677
	Weatherford Int Ltd	Common Stock		—		22,380
	Weatherford Int Ltd	Common Stock		—		849,734
	Weingarten Rlty	Common Stock		—		4,124
	WellPoint Inc	Common Stock		—		890,325
	Wells Fargo & Co	Common Stock		—		1,061,499
	Wells Fargo & Co	Common Stock		—		45,031
	Wellstar Intl Inc	Common Stock		—		—
	Westell Technologies Inc	Common Stock		—		1,850
	Western Asset High Inc	Common Stock		—		11,494
	Western Cap Res Inc Com	Common Stock		—		—
	Western Capital Res Inc	Common Stock		—		—
	Western Digital Corp	Common Stock		—		21,245
	Western Pac Minerals Ltd	Common Stock		—		—
	Western Refng Inc	Common Stock		—		86
	Western Union Co	Common Stock		—		1,361
	Westport Innovations Inc	Common Stock		—		58,762
	Weyerhaeuser Co	Common Stock		—		27,820
	Whole Foods Mkt Inc	Common Stock		—		2,382,991
	Whole Foods Mkt Inc	Common Stock		—		186
	Williams Cos Inc	Common Stock		—		7,277
	Windstream Corp	Common Stock		—		56,931
	Wintrust Financial Corp	Common Stock		—		18,468

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Women First Healthcare Inc	Common Stock		—		—
	Workday Inc	Common Stock		—		440,496
	WPX Energy Inc	Common Stock		—		1,056
	Wuxi Pharmatech Cayman Inc	Common Stock		—		6,300
	Wynn Resorts Ltd	Common Stock		—		12,570
	Xerox Corp	Common Stock		—		2,106
	Xinyuan Real Estate Co Ltd	Common Stock		—		537
	Xoma Corp	Common Stock		—		2,318
	XPO Logistics Inc	Common Stock		—		5,127
	Xybernaut Corp	Common Stock		—		—
	Yahoo Inc	Common Stock		—		7,164
	Yamana Gold Inc	Common Stock		—		18,110
	Yanzhou Coal Mining Co	Common Stock		—		17,080
	Yingli Green Energy Hldg Co	Common Stock		—		470
	Youku.com Inc	Common Stock		—		259,367
	YRC Worldwide Inc	Common Stock		—		20
	Yum! Brands Inc	Common Stock		—		2,032,753
	Yum! Brands Inc	Common Stock		—		8,581
	Zap Com	Common Stock		—		56
	Zimmer Holdings Inc	Common Stock		—		67
	Zion Oil & Gas Inc	Common Stock		—		2
	Zion Oil & Gas Inc	Common Stock		—		3,098
	Zipcar Inc	Common Stock		—		22,446
	Zoltek Cos Inc	Common Stock		—		15,500
	Zynex Inc	Common Stock		—		630
	Zynga Inc	Common Stock		—		1,652

	Common Stock			—	$	444,196,379


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

	Bonos Y Oblig Del Estado	5.85% 31 Jan 2022		—		393,045
	Bonos Y Oblig Del Estado	5.5% 30 Apr 2021		—		652,627
	Fannie Mae	6.625% 15 Nov 2030		—		1,330,784
	Fed HM LN Pool A58677	5.5% 01 Mar 2037		—		374,510
	Fed HM LN Pool C09004	3.5% 01 Jul 2042		—		978,532
	Fed HM LN Pool C48827	6.0% 01 Mar 2031		—		9,682
	Fed HM LN Pool C91370	4.5% 01 May 2031		—		424,828
	Fed HM LN Pool G12334	5.0% 01 Sep 2021		—		130,608
	FNMA Pool 256398	6.0% 01 Sep 2021		—		27,790
	FNMA Pool 581043	6.0% 01 May 2016		—		11,769
	FNMA Pool 615005	6.0% 01 Dec 2016		—		16,537
	FNMA Pool 694448	5.5% 01 Apr 2033		—		237,054
	FNMA Pool 725690	6.0% 01 Aug 2034		—		178,684
	FNMA Pool 748115	6.0% 01 oct 2033		—		73,764
	FNMA Pool 815316	5.5% 01 May 2035		—		304,267
	FNMA Pool 822979	5.5% 01 Apr 2035		—		276,663
	FNMA Pool 885504	6.0% 01 Jun 2021		—		128,289
	FNMA Pool 902793	6.5% 01 Nov 2036		—		131,430

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	FNMA Pool AB5236	3.0% 01 May 2027		—		451,314
	FNMA Pool AH3765	4.0% 01 Jan 2041		—		1,129,849
	FNMA Pool AH3979	4.0% 01 Feb 2041		—		402,203
	FNMA Pool AH4008	4.0% 01 Mar 2041		—		522,976
	FNMA Pool AH9374	4.5% 01 Apr 2041		—		528,118
	FNMA Pool AK9780	3.5% 01 May 2042		—		50,071
	FNMA Pool AL0920	5.0% 01 Jul 2037		—		523,241
	FNMA Pool AO3466	3.0% 01 Jun 2027		—		510,953
	FNMA Pool AO3540	3.0% 01 Jun 2042		—		206,831
	FNMA Pool AO4136	3.5% 01 Jun 2042		—		19,883
	FNMA Pool AO5515	3.5% 01 Jul 2042		—		55,826
	FNMA Pool AO8494	2.5% 01 Jun 2027		—		823,017
	FNMA Pool AP6604	3.0% 01 Sep 2042		—		818,477
	FNMA Pool MA0734	4.5% 01 May 2031		—		415,983
	FNMA Pool MA0918	4.0% 01 Dec 2041		—		1,095,447
	Mexico Bonds	8.0% 17 Dec 2015		—		115,378
	Mexico Bonds	6.25% 16 Jun 2016		—		1,937,428
	Republic of Philippines	3.9% 26 Nov 2022		—		248,850
	Tennessee Valley Authority	3.5% 15 Dec 2042		—		500,389
	United Mexican States	6.05% 11 Jan 2040		—		529,604
	US Treasury N/B	1.625% 15 Aug 2022		—		83,373
	US Treasury N/B	2.75% 15 Aug 2042		—		85,805
	US Treasury N/B	1.75% 15 May 2022		—		597,537
	US Treasury N/B	0.5% 15 Nov 2013		—		668,297
	US Treasury N/B	1.0% 30 Jun 2019		—		1,353,551
	US Treasury N/B	0.625% 30 Apr 2013		—		1,355,023
	US Treasury N/B	3.0% 15 May 2042		—		2,816,365
	US Treasury N/B	1.875% 31 Aug 2017		—		4,765,562

	U.S. Government and Government Agency Issues			—	$	28,292,214


**	Corporate and Other Obligations:

	Albertson’s Inc	6.625% 01 Jun 2028		—		13,144
	Alcoa Inc	5.87% 23 Feb 2022		—		346,120
	Ally Financial Inc	5.5% 15 Feb 2017		—		142,589
	Ally Financial Inc	6.25% 01 Dec 2017		—		377,151
	American Tower Corp	4.625% 01 Apr 2015		—		151,127
	American Tower Corp	4.5% 15 Jan 2018		—		227,289
	Amphenol Corp	4.75% 15 Nov 2014		—		336,643
	Anadarko Petroleum	6.375% 15 Sep 2017		—		436,364
	ArcelorMittal	7.25% 01 Mar 2041		—		343,406
	Associates Corp	6.95% 01 Nov 2018		—		178,401
	Banco Santander	3.875% 20 Sep 2022		—		202,431
	Banco Santander Brazil	4.625% 13 Mar 2017		—		417,642
*	Bank of America	5.0% 13 May 2021		—		152,171
*	Bank of America	5.625% 01 Jul 2020		—		462,390
*	Bank of America Coml Mtg	1.0% 10 Apr 2049		—		173,214
	Bear Stearns Coml Mtg	1.0% 11 Jun 2040		—		204,668

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Biomed Rlty Tr Inc Pfd Ser A 7.375%	Preferred Stock		—		7,644
	Braskem America Finance	7.125% 22 Jul 2041		—		342,925
	Brocade Communications	6.875% 51 Jan 2020		—		47,873
	Brocade Communications	6.625% 15 Jan 2018		—		142,719
	Bunge Limited Finance	4.1% 15 Mar 2016		—		79,546
	Cablevision Systems	8.0% 15 Apr 2020		—		289,116
	CCO Hldgs LLC	6.5% 30 Apr 2021		—		111,834
	Celulosa Arauco	5.0% 21 Jan 2021		—		236,268
	China Resources	4.5% 05 Apr 2022		—		217,191
	Cielo SA	3.75% 16 Nov 2022		—		389,799
	CitiGroup Inc	4.45% 10 Jan 2017		—		355,474
	Citigroup/Deutsche Bank	5.322% 11 Dec 2049		—		520,986
	CNPC General Capital	3.95% 19 Apr 2022		—		213,477
	Comcast Corp	5.65% 15 Jun 2035		—		105,421
	Commerical Mortgage Passthru	1.0% 10 Dec 2049		—		58,659
	Continental Airlines	5.983% 19 Oct 2023		—		295,106
	Contl Airlines	4.0% 29 Apr 2026		—		176,658
	Cox Communications	5.45% 15 Dec 2014		—		32,303
	Credit Suisse Coml Mtg	1.0% 15 Jan 2049		—		359,173
	Crown Castle Towers LLC	3.214% 15 Aug 2035		—		102,941
	DelHaize Group	4.125% 10 Apr 2019		—		356,710
	Deluxe Group	6.0% 15 Nov 2020		—		534,060
	Dolphin Energy Ltd	5.5% 15 Dec 2021		—		230,295
	Dun & Bradstreet	3.25% 01 Dec 2017		—		139,691
	Embarq Corp	7.995% 01 Jun 2036		—		687,033
	Energy Transfer Partners	5.2% 01 Feb 2022		—		95,732
	Energy Transfer Partners	6.05% 01 Jun 2041		—		483,029
	Enersis SA	7.375% 15 Jan 2014		—		161,242
	Enron Cap Res LP Pfd Ser A 9%	Preferred Stock		—		—
	Equifax Inc	7.0% 01 Jul 2037		—		242,605
	ERAC USA Fin Co	6.375% 15 Oct 2017		—		173,151
	FIServ Inc	3.5% 01 Oct 2022		—		291,519
	FMC Technologies	3.45% 01 Oct 2022		—		125,964
	Ford Motor Company	7.45% 16 Jul 2031		—		300,939
	Ford Motor Credit	7.0% 01 Oct 2013		—		139,301
	Ford Motor Credit	5.75% 01 Feb 2021		—		341,022
	Ford Motor Credit	5.0% 15 May 2018		—		424,889
	Frontier Communications	8.5% 15 Apr 2020		—		266,827
	Frontier Communications	7.875% 15 Jan 2027		—		290,621
	GE Equipment Midticket	0.6% 23 May 2016		—		637,481
	General Elec Cap Corp	2.95% 09 May 2016		—		197,605
	General Elec Cap Corp	5.3% 11 Feb 2021		—		343,823
	General Elec Cap Corp	3.75% 14 Nov 2014		—		442,467
	General Motors	6.75% 01 Jun 2018		—		266,173
	Georgia Pacific LLC	8.875% 15 May 2031		—		7,402
	Georgia Pacific LLC	7.375% 01 Dec 2025		—		174,892
	Georgia Pacific LLC	7.75% 15 Nov 2029		—		249,795
	Georgia Pacific LLC	7.25% 01 Jun 2028		—		329,644
	Goldman Sachs	5.25% 27 Jul 2021		—		264,501

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Goldman Sachs	6.15% 01 Apr 2018		—		289,972
	Greenwich Capital Commercial	5.736% 10 Dec 2049		—		139,665
	GS Mortgage Securities	1.0% 10 Aug 2045		—		523,619
	Hana Bank	4.25% 14 Jun 2017		—		273,899
	HCA Inc	7.5% 15 Feb 2022		—		423,936
	Health Care Reit Inc Pfd Ser J	Preferred Stock		—		43,040
	Hospitality Pptys Tr Redeemable Cum Pfd 7.125%	Preferred Stock		—		69,160
	Hutch Whampoa Ltd	4.625% 13 Jan 2022		—		517,617
	Hyundai Capital Services	3.5% 13 Sep 2017		—		208,527
	Intl Lease Finance Corp	6.25% 15 May 2019		—		693,996
	Ipalco Enterprises Inc	5.0% 01 May 2018		—		36,198
	IPIC GMTN Ltd	6.875% 01 Nov 2041		—		358,457
	JPMorgan Chase & Co	4.25% 15 Oct 2020		—		49,412
	JPMorgan Chase & Co	4.625% 10 May 2021		—		78,801
	JPMorgan Chase & Co	3.7% 20 Jan 2015		—		135,141
	JPMorgan Chase & Co	4.5% 24 Jan 2022		—		273,642
	Kia Motors Corporation	3.625% 14 Jun 2016		—		206,992
	Kinder Morgan	6.0% 15 Jan 2018		—		303,861
	Korea Development Bank	4.0% 09 Sep 2016		—		341,591
	Korea National Oil	3.125% 03 Apr 2017		—		445,399
	Lotte Shopping Co	3.375% 09 May 2017		—		686,192
	Merrill Lynch & Co Inc	6.4% 28 Aug 2017		—		208,706
	Methanex Corp	3.25% 15 Dec 2019		—		124,134
	Methanex Corp	5.25% 01 Mar 2022		—		279,243
	Mexichem SAB De CV	6.75% 19 Sep 2042		—		243,822
	Midwest Banc Hldgs Inc Perp Pfd Conv Ser A 7.75%	Preferred Stock		—		—
	ML CFC Coml Mtg	1.0% 12 Mar 2051		—		102,530
	Modern Energy Corp New Pfd Ser B	Preferred Stock		—		—
	Morgan Stanley	5.375% 15 Oct 2015		—		69,772
	Morgan Stanley	5.5% 26 Jan 2020		—		182,751
	Morgan Stanley	5.55% 27 Apr 2017		—		273,648
	Morgan Stanley	5.5% 24 Jul 2020		—		322,120
	Morgan Stanley Cap Tr Vi Cap Secs 6.60%	Preferred Stock		—		20,160
	Mortgage Stanley Capital I	5.569% 15 Dec 2044		—		686,025
	Mortgage Stanley Capital I	1.0% 12 Apr 2049		—		708,064
	Murray St Inv Trust	4.67% 09 Mar 2017		—		27,041
	Myriad Int Holding	6.375% 28 Jul 2017		—		144,718
	Nabors Industries	6.15% 15 Feb 2018		—		17,417
	Nabors Industries	9.25% 15 Feb 2019		—		399,422
	NewField Exploration Co	5.75% 30 Jan 2022		—		238,934
	Nextera Energy Capital	4.5% 01 Jun 2021		—		334,583
	Oi Sa Spon Adr Ea Repr 1 Pfd Shs	Preferred Stock		—		10,025
	Oil States Intl	5.125% 15 Jan 2023		—		130,118
	Olin Corp	5.5% 15 Aug 2022		—		77,197
	Orchard Supply Hardware Stores Corp Pfd Ser A	Preferred Stock		—		23
	OshKosh Corp	8.5% 01 Mar 2020		—		169,488
	Parker Drilling Co	9.125% 01 Apr 2018		—		94,858
	Perkinelmer Inc	5.0% 15 Nov 2021		—		240,826
	Petrobras Intl Fin	6.75% 27 Jan 2041		—		356,545

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Phillips 66	4.3% 01 Apr 2022		—		176,522
	PKO FIN AB	4.63% 26 Sep 2022		—		249,400
	Plains Exploration	6.875% 15 Feb 2023		—		355,329
	Post Holdings Inc	7.375% 15 Feb 2022		—		248,802
	Qtel International	7.875% 10 Jun 2019		—		355,686
	Reynolds American Inc	7.25% 15 Jun 2037		—		543,782
	Rock Tenn Co	4.0% 01 Mar 2023		—		135,408
	Roman Companies	5.0% 01 Sep 2017		—		263,239
	Royal Bank of Scotland	5.625% 24 Aug 2020		—		29,024
	Royal Bk Scotland Group Plc Spon Adr 7.25%	Preferred Stock		—		9,947
	RPM International Inc	6.125% 15 Oct 2019		—		262,782
	RR Donnelley & Sons	8.25% 15 Mar 2019		—		74,976
	RR Donnelley & Sons	7.25% 15 May 2018		—		95,278
	Santader Drive Auto	2.7% 15 Aug 2018		—		117,328
	Santader Drive Auto	1.94% 15 Mar 2018		—		143,102
	Santader Drive Auto	1.94% 15 Dec 2016		—		484,791
	Sealed Air Corp	6.5% 01 Dec 2020		—		95,969
	Sidewinder Drilling Inc	9.75% 15 Nov 2019		—		109,150
	SK Telecom Co	2.125% 01 May 2018		—		198,546
	SK Telecom Co	6.625% 20 Jul 2027		—		254,732
	SLM Corp	6.25% 25 Jan 2016		—		955,614
	SM Energy Co	6.5% 01 Jan 2023		—		174,314
	Sprint Capital Corp	6.875% 15 Nov 2028		—		503,144
	Telefonica Emisiones	5.462% 16 Feb 2021		—		10,527
	Telefonica Emisiones	5.134% 27 Apr 2020		—		155,690
	Telefonica Emisiones	3.992% 16 Feb 2016		—		195,191
	Telemar Norte Leste SA	5.5% 23 Oct 2020		—		272,109
	Tencent Holdings Ltd	4.625% 12 Dec 2016		—		350,813
	Time Warner Cable Inc	5.85% 01 May 2017		—		104,972
	Time Warner Cable Inc	6.55% 01 May 2037		—		183,231
	Time Warner Cable Inc	4.125% 15 Feb 2021		—		237,875
	Toyota Motor Credit Corp	1.75% 22 May 2017		—		854,345
	Transalta Corp	4.75% 15 Jan 2015		—		266,786
	TransOcean Inc	6.5% 15 Nov 2020		—		538,101
	US Steel Corp	7.375% 01 Apr 2020		—		142,287
	USG Corp	9.75% 15 Jan 2018		—		178,905
	Valeant Pharmaceuticals	6.375% 15 Oct 2020		—		84,713
	Vesey Str Invt Sr Nt	4.404% 01 Sep 2016		—		26,977
	Votorantim Cimentos SA	7.25% 05 Apr 2041		—		221,162
	VPI Escrow Corp	6.375% 15 Oct 2020		—		338,852
	Western Union Co	2.375% 10 Dec 2015		—		84,312
	Whirlpool Corp	4.7% 01 Jun 2022		—		241,349
	Willis North America Inc	7.0% 29 Sep 2019		—		466,579
	Windstream Corp	8.125% 01 Sep 2018		—		70,113
	Windstream Corp	7.5% 01 Apr 2023		—		187,050
	Wolvering World Wide	6.125% 15 Oct 2020		—		57,018
	World Financial Network	3.14% 17 Jan 2023		—		694,780
	World Financial Network	1.76% 17 May 2021		—		698,767

	Corporate and Other Obligations			—	$	40,508,932

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
**	Synthetic Guaranteed Investment Contracts:

	Cash & Cash Equivalents

	Australian Dollar	Cash		—		17,348
*	State Street Bank & Trust Co	Short Term Investment Fund		—		309,674
*	State Street Bank & Trust Co	Short-Term Investment Fund		—		1,226,546
*	State Street Bank & Trust Co	Short-Term Investment Fund		—		1,360,889
*	State Street Bank & Trust Co	Short-Term Investment Fund		—		39,287,377

				—		42,201,834

	U.S. Government and Government Agency Issues

	Australian Government	4.75% 15 Jun 2016		—		755,988
	Australian Government	5.25% 15 Mar 2019		—		1,601,170
	Australian Government	6.0% 15 Feb 2017		—		2,624,232
	California St	5.75% 01 Mar 2017		—		458,482
	California St	5.0% 01 Nov 2037		—		536,780
	Fannie Mae	1.0% 25 May 2030		—		613,042
	Fannie Mae	0.875% 20 Dec 2017		—		4,648,492
	Fannie Mae	2.625% 20 Nov 2014		—		6,338,054
	Fed HM LN Note	0.16% 15 Apr 2013		—		12,762,281
	Fed HM LN PC Pool 1J1214	4.0% 01 Mar 2025		—		23,730
	Fed HM LN PC Pool 1L1358	1.0% 01 May 2036		—		992,228
	Fed HM LN PC Pool E02697	4.0% 01 Jun 2025		—		31,910
	Fed HM LN PC Pool E02783	4.0% 01 Sep 2025		—		33,133
	Fed HM LN PC Pool E02883	4.0% 01 Apr 2026		—		399,626
	Fed HM LN PC Pool E09016	3.0% 01 Nov 2027		—		1,468,548
	Fed HM LN PC Pool E99842	4.0% 01 Oct 2013		—		—
	Fed HM LN PC Pool G01843	6.0% 01 Jun 2035		—		787,975
	Fed HM LN PC Pool G01890	4.0% 01 Nov 2013		—		291,205
	Fed HM LN PC Pool G03737	6.5% 01 Nov 2037		—		1,030,600
	Fed HM LN PC Pool G08084	4.0% 01 Apr 2026		—		638,454
	Fed HM LN PC Pool G08443	4.5% 01 Apr 2041		—		702,295
	Fed HM LN PC Pool G12743	5.5% 01 Aug 2022		—		195,050
	Fed HM LN PC Pool G14093	4.5% 01 Oct 2035		—		—
	Fed HM LN PC Pool G18385	1.0% 01 Sep 2035		—		43,119
	Fed HM LN PC Pool J11872	4.0% 01 Mar 2026		—		32,359
	Fed HM LN PC Pool J14641	4.0% 01 Mar 2025		—		708,207
	Fed HM LN PC Pool J15157	4.0% 01 Apr 2026		—		24,434
	Fed HM LN PC Pool J17969	3.0% 01 Feb 2027		—		2,563,279
	Fed HM LN PC Pool Q03572	4.0% 01 Sep 2041		—		3,565,188
	Fed HM LN PC Pool Q03681	4.0% 01 Oct 2041		—		3,861,420
	Fed HM LN PC Pool Q03780	4.0% 01 Oct 2017		—		54,014
	Fed HM LN Pool 1Q0669	1.0% 01 Nov 2037		—		81,676
	Fed HM LN Pool 1Q1159	1.0% 01 May 2038		—		687,439
	Fed HM LN Pool A89385	4.5% 01 Oct 2039		—		3,441,455
	Fed HM LN Pool G03205	5.5% 01 Jul 2035		—		152,887

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Fed HM LN Pool G04731	5.5% 01 Apr 2038		—		1,402,519
	Federal Farm Credit Bank	1.0% 29 Sep 2014		—		838,595
	Federal Farm Credit Bank	1.0% 26 Jun 2013		—		2,437,812
	Federal Farm Credit Bank	1.0% 26 Apr 2013		—		5,177,027
	FHLMC TBA	4.5% 01 Dec 2099		—		(1,045,791	)
	FHLMC TBA	4.0% 31 Dec 2099		—		(824,084	)
	FHLMC TBA	4.5% 01 Dec 2099		—		—
	FICO Strip	0.01% 27 Dec 2018		—		—
	FICO Strip	0.01% 06 Oct 2015		—		190,757
	FICO Strip	0.01% 07 Mar 2019		—		317,124
	FICO Strip	0.01% 26 Sep 2019		—		372,323
	FICO Strip	0.01% 08 Aug 2015		—		420,335
	FICO Strip	0.01% 26 Sep 2014		—		699,959
	FICO Strip	0.01% 11 May 2013		—		783,030
	FICO Strip	0.01% 03 Feb 2017		—		2,684,988
	FICO Strip	0.01% 30 Nov 2017		—		2,787,204
	Financing Corp	10.7% 06 Oct 2017		—		337,262
	Financing Corp	9.8% 06 Apr 2018		—		494,852
	FNMA Pool 254693	5.5% 01 Apr 2033		—		281,531
	FNMA Pool 255364	6.0% 01 Sep 2034		—		252,681
	FNMA Pool 256925	6.0% 01 Oct 2037		—		688,886
	FNMA Pool 555541	1.0% 01 Apr 2033		—		52,954
	FNMA Pool 725027	5.0% 01 Nov 2033		—		145,186
	FNMA Pool 725222	5.5% 01 Feb 2034		—		357,802
	FNMA Pool 725423	5.5% 01 May 2034		—		265,091
	FNMA Pool 725424	5.5% 01 Apr 2034		—		125,901
	FNMA Pool 725690	6.0% 01 Aug 2034		—		106,013
	FNMA Pool 725946	5.5% 01 Nov 2034		—		332,710
	FNMA Pool 735141	5.5% 01 Jan 2035		—		489,433
	FNMA Pool 735224	5.5% 01 Feb 2035		—		652,193
	FNMA Pool 735667	5.0% 01 Jul 2035		—		2,252,602
	FNMA Pool 735676	5.0% 01 Jul 2035		—		647,162
	FNMA Pool 743132	5.0% 01 Oct 2018		—		653,467
	FNMA Pool 745275	5.0% 01 Feb 2036		—		1,095,011
	FNMA Pool 745275	5.0% 01 Feb 2036		—		2,089,991
	FNMA Pool 745327	6.0% 01 Mar 2036		—		178,308
	FNMA Pool 756363	1.0% 01 Dec 2033		—		146,609
	FNMA Pool 770946	5.0% 01 Apr 2034		—		451,353
	FNMA Pool 776971	5.0% 01 Apr 2034		—		537,601
	FNMA Pool 831540	6.0% 01 Jun 2036		—		634,689
	FNMA Pool 837220	4.5% 01 Aug 2020		—		1,141,861
	FNMA Pool 841068	4.5% 01 Feb 2039		—		345,537
	FNMA Pool 844444	5.0% 01 Dec 2035		—		878,968
	FNMA Pool 848647	5.5% 01 Jan 2036		—		501,589
	FNMA Pool 880611	5.5% 01 Apr 2036		—		469,085
	FNMA Pool 888340	5.0% 01 Aug 2036		—		579,998
	FNMA Pool 888521	1.0% 01 Mar 2034		—		253,073
	FNMA Pool 888789	5.0% 01 Jul 2036		—		180,944
	FNMA Pool 889004	1.0% 01 Aug 2037		—		408,536

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	FNMA Pool 889361	6.0% 01 Mar 2038		—		387,870
	FNMA Pool 889369	6.0% 01 Feb 2038		—		496,114
	FNMA Pool 889544	5.5% 01 May 2038		—		383,543
	FNMA Pool 889579	6.0% 01 May 2038		—		546,280
	FNMA Pool 889750	6.0% 01 May 2038		—		149,821
	FNMA Pool 914789	5.0% 01 Apr 2037		—		1,149,359
	FNMA Pool 931745	5.0% 01 Aug 2024		—		2,474,433
	FNMA Pool 932586	4.5% 01 Mar 2040		—		1,667,490
	FNMA Pool 986148	5.5% 01 Jan 2038		—		1,791,355
	FNMA Pool 995018	5.5% 01 Jun 2038		—		1,134,555
	FNMA Pool 995051	6.0% 01 Mar 2037		—		1,136,401
	FNMA Pool AA6450	4.5% 01 Sep 2040		—		1,492,806
	FNMA Pool AB1600	4.0% 01 Oct 2025		—		612,066
	FNMA Pool AB1609	3.5% 01 Dec 2040		—		132,207
	FNMA Pool AB5236	3.0% 01 May 2027		—		285,137
	FNMA Pool AD8529	4.5% 01 Aug 2040		—		684,726
	FNMA Pool AE0061	6.0% 01 Feb 2040		—		263,346
	FNMA Pool AE0349	6.0% 01 Apr 2040		—		888,454
	FNMA Pool AE0368	3.5% 01 Dec 2025		—		79,629
	FNMA Pool AE0392	5.5% 01 Dec 2039		—		277,341
	FNMA Pool AE0480	6.0% 01 Jul 2039		—		110,955
	FNMA Pool AE1016	3.5% 01 Oct 2025		—		655,537
	FNMA Pool AE1332	4.0% 01 Aug 2025		—		164,588
	FNMA Pool AE3771	3.5% 01 Jan 2026		—		25,575
	FNMA Pool AE9449	3.5% 01 Dec 2025		—		530,701
	FNMA Pool AH1105	3.5% 01 Dec 2025		—		419,514
	FNMA Pool AH1882	3.5% 01 Jan 2027		—		11,883
	FNMA Pool AH2815	3.5% 01 Mar 2026		—		1,905,818
	FNMA Pool AH2857	3.5% 01 Jan 2026		—		215,382
	FNMA Pool AH8702	3.5% 01 May 2026		—		179,593
	FNMA Pool AH9523	4.5% 01 Aug 2041		—		596,080
	FNMA Pool AH9706	3.5% 01 Jan 2026		—		788,486
	FNMA Pool AI3654	4.5% 01 May 2042		—		713,024
	FNMA Pool AJ7689	4.0% 01 Dec 2041		—		5,731,383
	FNMA Pool AK2989	3.0% 01 May 2027		—		1,707,828
	FNMA Pool AK9780	3.5% 01 May 2042		—		405,316
	FNMA Pool AL0139	1.0% 01 Feb 2039		—		793,908
	FNMA Pool AL030	4.5% 01 Jun 2026		—		2,413,878
	FNMA Pool AL0920	5.0% 01 Jul 2037		—		1,427,679
	FNMA Pool AO5515	3.5% 01 Jul 2042		—		465,930
	FNMA Pool MA0614	4.0% 01 Jan 2041		—		990,007
	FNMA Pool MA0649	4.0% 01 Apr 2026		—		181,313
	FNMA Pool MA0694	4.5% 01 Jun 2041		—		211,448
	FNMA TBA	3.5% 01 Dec 2099		—		(3,101,736	)
	FNMA TBA	3.5% 01 Dec 2099		—		—
	FNMA TBA	4.0% 01 Dec 2099		—		—
	FNMA TBA	4.0% 01 Dec 2099		—		—
	FNMA TBA	4.5% 01 Dec 2099		—		2,105,669
	FNMA TBA	3.0% 01 Dec 2099		—		2,458,675

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	FNMA TBA Single Fam	6.0% 01 Dec 2102		—		53,226
	FNMA TBA Single Fam	4.5% 01 Dec 2100		—		1,195,153
	FNMA TBA Single Fam	3.0% 01 Dec 2099		—		3,487,643
	FNMA TBA Single Fam	4.5% 01 Dec 2101		—		3,911,280
	FNMA TBA Single Fam	3.5% 01 Dec 2099		—		4,156,513
	Freddie Mac	1.0% 15 Dec 2029		—		29,369
	Freddie Mac	0.15% 03 Apr 2013		—		194,859
	Freddie Mac	2.375% 13 Jan 2022		—		2,316,437
	Freddie Mac	4.875% 13 Jun 2018		—		4,306,316
	Freddie Mac	0.16% 21 May 2013		—		6,428,822
	GNMA TBA	3.0% 01 Dec 2099		—		2,072,089
	Honolulu City & Cnty	5.0% 01 Nov 2025		—		604,866
	Illinois St	4.95% 01 Jun 2023		—		1,759,819
	Illinois St	3.321% 01 Jan 2013		—		2,144,275
	Irvine Ranch CA	2.605% 15 Mar 2014		—		1,399,607
	Japan Treasury Disc Bill	0.01% 12 Feb 2013		—		3,493,909
	Kentucky ST Property	5.373% 01 Nov 2025		—		341,098
	NC State Education	1.0% 25 Jul 2025		—		1,411,807
	New York City Transitional	4.725% 01 Nov 2023		—		114,285
	New York City Transitional	4.905% 01 Nov 2024		—		116,057
	New York City Transitional	5.075% 01 Nov 2025		—		117,609
	Overseas Private Inv Corp	0.01% 12 Jul 2016		—		3,464,836
	Province of Ontario	4.0% 07 Oct 2019		—		2,142,560
	Province of Quebec	4.6% 26 May 2015		—		1,273,060
	Republic of Poland	6.375% 15 Jul 2019		—		48,606
	Republic of Poland	3.875% 16 Jul 2015		—		450,539
	Resolution Funding Strip	0.01% 15 Jan 2014		—		368,819
	Resolution Funding Strip	0.01% 15 Apr 2015		—		838,366
	Resolution Funding Strip	0.01% 15 Jan 2017		—		947,158
	RFSCP Strip Principal	0.01% 15 Jul 2020		—		3,700,111
	Russian Foreign Bond	1.0% 31 Mar 2030		—		212,295
	Small Business Administration	7.06% 01 Nov 2019		—		62,562
	Small Business Administration	7.19% 01 Dec 2019		—		112,186
	Small Business Administration	5.68% 01 Jun 2028		—		768,552
	South Carolina St Public Svc	1.0% 02 Jun 2014		—		1,464,886
	State of Qatar	4.5% 20 Jan 2022		—		313,162
	Tobacco Settlement	5.875% 15 May 2039		—		299,404
	Treasury Bill	0.19% 22 Aug 2013		—		1,849,795
	Treasury Bill	0.01% 31 Jan 2013		—		3,887,859
	Treasury Bill	0.01% 12 Dec 2013		—		4,282,820
	Treasury Bill	0.19% 14 Nov 2013		—		5,742,240
	Treasury INFL IX N/B	0.625% 15 Jul 2021		—		1,023,398
	Treasury INFL IX N/B	0.125% 15 Apr 2017		—		1,594,472
	Treasury INFL IX N/B	0.125% 15 Jul 2022		—		3,299,309
	Treasury INFL IX N/B	1.125% 15 Jan 2021		—		4,115,864
	Treasury INFL IX N/B	0.125% 15 Jan 2022		—		4,867,870
	US Treasury N/B	6.125% 15 Nov 2027		—		144,799
	US Treasury N/B	7.875% 15 Feb 2021		—		146,688
	US Treasury N/B	1.875% 30 Sep 2017		—		308,757

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	US Treasury N/B	1.0% 31 Mar 2017		—		396,843
	US Treasury N/B	3.825% 15 Feb 2013		—		538,498
	US Treasury N/B	2.375% 31 Jul 2017		—		646,392
	US Treasury N/B	0.875% 30 Apr 2017		—		774,501
	US Treasury N/B	2.75% 15 Feb 2019		—		863,376
	US Treasury N/B	1.375% 15 Jan 2013		—		897,082
	US Treasury N/B	1.25% 31 Jan 2019		—		992,336
	US Treasury N/B	3.125% 15 May 2021		—		1,105,261
	US Treasury N/B	0.50% 31 Jul 2017		—		1,191,632
	US Treasury N/B	0.875% 31 Jan 2017		—		1,209,828
	US Treasury N/B	6.25% 15 Aug 2023		—		1,257,690
	US Treasury N/B	2.75% 15 Nov 2042		—		1,314,648
	US Treasury N/B	1.75% 15 May 2022		—		1,572,996
	US Treasury N/B	0.625% 30 Nov 2017		—		1,612,518
	US Treasury N/B	1.875% 31 Aug 2017		—		1,647,071
	US Treasury N/B	1.75% 15 May 2022		—		1,912,174
	US Treasury N/B	0.25% 15 Oct 2015		—		1,944,924
	US Treasury N/B	0.75% 15 Dec 2013		—		1,959,696
	US Treasury N/B	2.5% 31 Mar 2015		—		1,969,467
	US Treasury N/B	1.0% 30 Sep 2016		—		1,986,499
	US Treasury N/B	2.0% 15 Feb 2022		—		2,318,277
	US Treasury N/B	0.375% 31 Jul 2013		—		2,440,102
	US Treasury N/B	1.875% 30 Jun 2015		—		2,617,155
	US Treasury N/B	0.625% 31 May 2017		—		2,665,007
	US Treasury N/B	1.625% 15 Aug 2022		—		2,716,010
	US Treasury N/B	1.75% 15 Apr 2013		—		3,285,349
	US Treasury N/B	1.375% 31 Dec 2018		—		3,300,091
	US Treasury N/B	2.625% 15 Nov 2020		—		3,423,043
	US Treasury N/B	1.625% 15 Nov 2022		—		3,610,216
	US Treasury N/B	0.625% 31 Aug 2017		—		4,425,722
	US Treasury N/B	0.25% 31 Aug 2014		—		4,557,828
	US Treasury N/B	0.875% 30 Nov 2016		—		5,016,400
	US Treasury N/B	3.625% 15 Feb 2020		—		5,079,235
	US Treasury N/B	1.5% 30 Jun 2016		—		5,253,593
	US Treasury N/B	2.375% 31 Jul 2017		—		6,080,293
	US Treasury N/B	1.625% 15 Aug 2022		—		6,221,165
	US Treasury N/B	1.375% 28 Feb 2019		—		6,392,379
	US Treasury N/B	2.625% 15 Aug 2020		—		6,561,000
	US Treasury N/B	1.875% 30 Apr 2014		—		7,171,412
	US Treasury N/B	1.75% 31 May 2016		—		8,425,187
	US Treasury N/B	2.0% 15 Nov 2021		—		8,497,454
	US Treasury N/B	2.5% 30 Apr 2015		—		9,444,214
	US Treasury N/B	0.625% 31 Jan 2013		—		9,467,751
	US Treasury N/B	1.125% 15 Aug 2021		—		10,758,534
	US Treasury N/B	1.0% 31 Aug 2016		—		17,560,653
	US Treasury N/B	0.125% 31 Jul 2014		—		20,044,480
	US Treasury N/B	2.125% 31 May 2015		—		37,041,719

				—		442,114,509

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Corporate and Other Obligations

	ACE Ina Hldg Inc	5.6% 15 May 2015		—		200,153
	Actavis Inc	3.25% 01 Oct 2022		—		181,088
	Actavis Inc	3.25% 01 Oct 2022		—		402,971
	ADT Corp	3.5% 15 Jul 2022		—		77,732
	Agilent Technologies Inc	6.5% 01 Nov 2017		—		595,002
	Alcoa Inc	6.15% 15 Aug 2020		—		383,213
	Allied World Assurance	7.5% 01 Aug 2016		—		190,013
	Allstate Corp	5.0% 15 Aug 2014		—		469,078
	Ally Auto Receivables Trust	0.45% 15 Jul 2015		—		297,244
	Ally Auto Receivables Trust	0.8% 16 Jun 2014		—		300,781
	Ally Master Trust	1.54% 15 Sep 2019		—		1,227,568
	Altria Group	2.85% 09 Aug 2022		—		945,175
	Amazon.com	0.65% 27 Nov 2015		—		1,456,254
	America Movil SAB	3.625% 30 Mar 2015		—		738,916
	American Express	0.59% 15 May 2018		—		579,972
	American Express	0.68% 15 Mar 2018		—		1,051,119
	American International Group	3.8% 22 Mar 2017		—		221,533
	American International Group	4.875% 01 Jun 2022		—		333,811
	American Intl Group	3.65% 15 Jan 2014		—		447,769
	American Intl Group	4.875% 15 Sep 2016		—		572,329
	American Tower Corp	5.05% 01 Sep 2020		—		420,822
	Americredit Auto Receivables	1.39% 08 Sep 2015		—		341,021
	Americredit Auto Receivables	1.55% 08 Jul 2016		—		902,942
	Americredit Automobile	0.76% 08 Oct 2015		—		421,410
	Americredit Automobile Receivables	1.19% 08 Aug 2015		—		122,778
	Americredit Automobile Receivables	0.92% 09 Mar 2015		—		141,356
	Americredit Automobile Receivables	0.96% 09 Jan 2017		—		583,443
	Americredit Automobile Receivables	0.49% 08 Apr 2016		—		594,828
	Anadarko Petroleum Corp	5.95% 15 Sep 2016		—		557,621
	Anglogold Holdings Plc	5.375% 15 Apr 2020		—		311,835
	Aon Corp	3.5% 30 Sep 2015		—		497,866
	Apache Corp	2.625% 15 Jan 2023		—		963,114
	ArcelorMittal	10.35% 01 Jun 2019		—		561,116
	Asciano Finance	3.125% 23 Sep 2015		—		484,185
	AT&T Inc	5.8% 15 Feb 2019		—		490,341
	AT&T Inc	1.4% 01 Dec 2017		—		638,529
	AT&T Inc	5.8% 15 Feb 2019		—		1,758,052
	Autozone Inc	3.7% 15 Apr 2022		—		379,129
	Baidu Inc	2.25% 28 Nov 2017		—		199,085
	Banc of America Funding Corp	1.0% 25 May 2035		—		178,508
*	Bank of America Corp	6.1% 15 Jun 2017		—		359,381
*	Bank of America Corp	5.75% 01 Dec 2017		—		1,249,678
*	Bank of America Corp	1.0% 30 Jan 2014		—		1,867,339
*	Bank of America Corp	5.7% 24 Jan 2022		—		41,023
*	Bank of America Corp	3.875% 22 Mar 2017		—		126,846
*	Bank of America Corp	5.65% 01 May 2018		—		153,086
*	Bank of America Corp	5.625% 01 Jul 2020		—		202,229

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
*	Bank of America Corp	7.625% 01 Jun 2019		—		212,017
*	Bank of America Corp	5.42% 15 Mar 2017		—		320,285
*	Bank of America Corp	1.03% 15 Dec 2016		—		388,960
*	Bank of America Corp	3.75% 12 Jul 2016		—		463,624
*	Bank of America Corp	5.65% 01 May 2018		—		782,442
*	Bank of America Corp	5.49% 15 Mar 2019		—		974,413
*	Bank of America Corp	5.625% 01 Jul 2020		—		976,478
*	Bank of America Corp	5.7% 24 Jan 2022		—		1,002,136
	Bank of Montreal	1.4% 11 Sep 2017		—		660,404
	Barclays Bank	5.125% 08 Jan 2020		—		416,282
	Barclays Bank Plc	2.375% 13 Jan 2014		—		1,684,909
*	Baxter International Inc	1.85% 15 Jan 2017		—		220,961
	Bear Stearns Coml Mth Secs	1.0% 11 Sep 2038		—		154,220
	Bear Stearns Coml Mth Secs	5.533% 12 Oct 2041		—		170,685
	Bear Stearns Coml Mth Secs	1.0% 12 Jan 2045		—		834,450
	Bear Stearns Commercial Mortgage	1.0% 11 Sep 2038		—		284,508
	Bear Stearns Commercial Mtg	1.0% 11 Jun 2040		—		1,171,853
	Bear Stearns Cos	5.3% 30 Oct 2015		—		864,098
	Bear Stearns Cos	7.25% 01 Feb 2018		—		922,085
	Bear Stearns Cos	6.4% 02 Oct 2017		—		1,170,577
	Bear Stearns Cos	5.55% 22 Jan 2017		—		368,213
	Bears Sterns Adjustable Rate	1.0% 25 Aug 2033		—		112,313
	Berkshire Hathaway	1.6% 15 May 2017		—		670,586
	Berkshire Hathaway Fin Corp	5.4% 15 May 2018		—		679,996
	Boeing Co	5.125% 15 Feb 2013		—		445,924
	Boston PPTYS Ltd	3.7% 15 Nov 2018		—		280,575
	BP Capital Markets	1.375% 06 Nov 2017		—		853,589
	BP Capital Markets	1.846% 05 May 2017		—		946,561
	BP Capital Marlkets	4.5% 01 Oct 2020		—		786,289
	BP Capital Marlkets	3.125% 01 Oct 2015		—		1,034,659
	British Telecom	5.95% 15 Jan 2018		—		142,103
	British Telecom	2.0% 22 Jun 2015		—		380,752
	Bunge Limited	5.875% 15 May 2013		—		114,075
	Bunge Limited	8.5% 15 Jun 2019		—		314,780
	Burlignton North Santa Fe	5.75% 15 Mar 2018		—		318,374
	Cameron Intl Corp	1.0% 02 Jun 2014		—		946,949
	Canadian Natl Railway	1.45% 15 Dec 2016		—		941,953
	Capital One Bank	8.8% 15 Jul 2019		—		673,097
	Capital One Financial	5.25% 21 Feb 2017		—		422,220
	Capital One Financial	7.375% 23 May 2014		—		620,260
	Capital One Financial	2.125% 15 Jul 2014		—		962,430
	Capital One Multi Asset	1.0% 15 Mar 2017		—		561,212
	Carmax Auto Owner Trust	0.89% 15 Sep 2016		—		485,732
	Carmax Auto owner Trust	1.410% 16 Feb 2016		—		928,095
	Carmax Auto Trust	0.84 % 15 Mar 2017		—		1,584,797
	Caterpillar	1.25% 06 Nov 2017		—		560,014
	CBS Corp	8.875% 15 May 2019		—		223,481
	CBS Corp	5.75% 15 Apr 2020		—		297,693
	CD Commercial Mortgage Trust	5.322% 11 Dec 2049		—		1,565,276

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Cellco Part/Veri Wireless	8.5% 15 Nov 2018		—		455,890
	Centerpoint Energy	4.5% 15 Jan 2021		—		110,844
	Chase Issuance Trust	0.54% 16 Oct 2017		—		481,859
	CIT Equipment Trust	1.1% 22 Aug 2016		—		264,316
	Citigroup Commercial Mtg	1.0% 10 Dec 2049		—		459,327
	Citigroup Inc	6.5% 19 Aug 2013		—		196,636
	Citigroup Inc	5.5% 11 Apr 2013		—		196,942
	Citigroup Inc	5.375% 09 Aug 2020		—		454,845
	Citigroup Inc	5.375% 09 Aug 2020		—		493,897
	Citigroup Inc	6.125% 21 Nov 2017		—		580,005
	Citigroup Inc	4.5% 14 Jan 2022		—		802,533
	Citigroup Inc	6.01% 15 Jan 2015		—		910,607
	Citigroup Inc	4.5% 14 Jan 2022		—		2,028,083
	Citigroup Mortgage Loan Trust	1.0% 25 Jan 2033		—		63,591
	Citigroup/Deutsche Bank Comm	5.431% 15 Oct 2049		—		257,239
	Cleveland Elec Illum Co	5.7% 01 Apr 2017		—		440,366
	Clorox Company	5.95% 15 Oct 2017		—		550,727
	CNH 2010 A	2.49% 15 Jan 2016		—		926,619
	CNH 2010 B	1.74% 17 Jan 2017		—		1,029,040
	CNH Equipment Trust	0.94% 15 May 2017		—		377,469
	Cobalt CMBS	1.0% 15 Apr 2047		—		1,920,860
	Coca Cola Co	3.3% 01 Sep 2021		—		1,504,255
	Comcast Corp	4.95% 15 Jun 2016		—		181,281
	Comcast Corp	6.5% 15 Jan 2017		—		205,712
	Comcast Corp	6.3% 15 Nov 2017		—		561,975
	Comcast Corp	5.15% 01 Mar 2020		—		577,621
	Comm Mortgage Trust	3.147% 15 Aug 2045		—		251,994
	Cons Edison Co	5.3% 01 Dec 2016		—		897,772
	Constellation Energy	5.15% 01 Dec 2020		—		96,932
	Consumers Energy Co	6.125% 15 Mar 2019		—		335,282
	Countrywide Asset Backed	1.0% 25 Feb 2035		—		204,102
	Countrywide Finl Corp	6.25% 15 May 2016		—		78,103
	Coventry Health Care Inc	6.125% 15 Jan 2015		—		31,944
	Coventry Health Care Inc	5.95% 15 Mar 2017		—		96,306
	Coventry Health Care Inc	6.3% 15 Aug 2014		—		273,739
	Cox Communications	5.45% 15 Dec 2014		—		331,644
	Credit Based Asset Servicing	1.0% 25 Jan 2033		—		143,331
	Credit Suisse Mortgage	1.0% 15 Jun 2038		—		641,732
	Credit Suisse Mortgage	5.467 15 Sep 2039		—		840,986
	Credit Suisse Mortrgage Capital	5.467% 15 Sep 2039		—		1,504,923
	CS First Boston Mortgage	1.0% 15 Jan 2037		—		304,720
	CS First Boston Mortgage	1.0% 15 Feb 2038		—		314,953
	CVS Caremark Corp	2.75% 01 Dec 2022		—		679,917
	DelHaize Group	4.125% 10 Apr 2019		—		724,393
	Delta Airlines	7.75% 17 Jun 2021		—		650,494
	Diageo Capital Plc	7.375% 15 Jan 2014		—		323,153
	Directv Holdings	4.75% 01 Oct 2014		—		150,898
	Directv Holdings	3.8% 15 Mar 2022		—		241,326
	Directv Holdings	4.6% 15 Feb 2021		—		263,780

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Discover Bank	7.0% 15 Apr 2020		—		484,098
	Discover Card Master Trust	1.0% 15 Sep 2015		—		150,263
	Discover Card Master Trust	0.86% 15 Nov 2017		—		265,848
	Discover Card Master Trust	0.81% 15 Aug 2017		—		304,427
	DNB Bank ASA	3.2% 03 Apr 2017		—		513,851
	Dominion Resources	1.95% 15 Aug 2016		—		941,551
	Dow Chemical Co	8.55% 15 May 2019		—		314,495
	Dow Chemical Co	4.125% 15 Nov 2021		—		341,688
	Dow Chemical Co	2.5% 15 Feb 2016		—		460,697
	Dow Chemical Co	4.125% 15 Nov 2021		—		469,821
	DryRock Issuane Trust	0.64% 15 Aug 2018		—		574,714
	Duke Energy Carolinas	5.1% 15 Apr 2018		—		582,522
	Duke Realty LP	8.25% 15 Aug 2019		—		186,932
	Embarq Corp	7.995% 01 Jun 2036		—		683,605
	Encana Corp	3.9% 15 Nov 2021		—		576,954
	ENEL Finance Intl	6.25% 15 Sep 2017		—		1,376,087
	Energy Transfer Partners	6.7% 01 Jul 2018		—		577,799
	Energy Transfer Partners	6.0% 01 Jul 2013		—		673,496
	Ensco Plc	3.25% 15 Mar 2016		—		909,512
	Enterprise Products	5.2% 01 Sep 2020		—		296,662
	Enterprise Products	6.5% 31 Jan 2019		—		531,336
	Enterprise Products	1.25% 13 Aug 2015		—		965,946
	EQT Corp	8.125% 01 Jun 2019		—		168,906
	ERAC USA Finance	2.25% 10 Jan 2014		—		1,673,822
	ERAC USA Finance	2.25% 10 Jan 2014		—		940,294
	Ericsson LM	4.125% 15 May 2022		—		506,485
	ERP Operating LP	5.25% 15 Sep 2014		—		434,507
	Exelon Generation Co	4.0% 01 Oct 2020		—		906,771
	Express Scripts	6.25% 15 Jun 2014		—		99,712
	Express Scripts	3.125% 15 May 2016		—		945,380
	Federal Realty Invs Trust	5.4% 01 Dec 2013		—		654,458
	Federal Rlty Invt Tr	5.65% 01 Jun 2016		—		307,011
	FHLMC Multifamily Structured	1.655% 25 Nov 2016		—		929,141
	FHLMC Multifamily Structured	2.086% 25 Mar 2019		—		946,712
	FHLMC Multifamily Structured	2.746% 25 Dec 2019		—		951,362
	FHLMC Multifamily Structured	2.412% 25 Aug 2018		—		1,237,374
	FHLMC Multifamily Structured	3.154% 25 Feb 2018		—		1,481,984
	FHLMC Multifamily Structured	2.130% 25 Jan 2019		—		2,666,062
	FHLMC Multifamily Structured	1.883% 25 May 2019		—		3,295,630
	FHLMC Multifamily Structured	3.23% 25 Jul 2021		—		3,973,635
	Fifth Third Bancorp	3.5% 15 Mar 2022		—		193,069
	FirstEnergy Solutions	6.050% 15 Aug 2021		—		507,565
	For Motor Credit Co	5.0% 15 May 2018		—		828,125
	Ford Credit Auto	1.0% 15 Jan 2016		—		977,956
	Ford Credit Auto	4.2% 15 Feb 2017		—		1,360,403
	Ford Credit Auto Lease Trust	0.74% 15 Sep 2013		—		92,969
	Ford Credit Auto Lease Trust	0.68% 15 Jan 2014		—		164,646
	Ford Credit Auto Lease Trust	1.0% 15 Sep 2017		—		319,993
	Ford Credit Auto Lease Trust	0.54% 15 Nov 2014		—		531,561

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Ford Motor Credit Co	8.125% 15 Jan 2020		—		986,647
	Ford Motor Credit Co	5.875% 02 Aug 2021		—		1,021,537
	Gazprom	6.212% 22 Nov 2016		—		334,039
	GCCGC Commerical Mortgage	5.444% 10 Mar 2039		—		1,010,294
	GDF Suez	1.625% 10 Oct 2017		—		173,450
	GE Capital	1.76% 15 Sep 2022		—		460,000
	GE Capital	1.36% 17 Aug 2020		—		536,539
	GE Equipment Midticket LLC	1.0% 24 Aug 2015		—		199,319
	General Electric Cap Corp	4.65% 17 Oct 2021		—		216,866
	General Electric Cap Corp	4.375% 16 Sep 2020		—		484,061
	General Electric Cap Corp	2.3% 27 Apr 2017		—		692,273
	General Electric Cap Corp	4.65% 17 Oct 2021		—		995,360
	General Electric Cap Corp	5.5% 08 Jan 2020		—		1,124,885
	General Electric Cap Corp	5.625% 01 May 2018		—		1,244,263
	General Electric Cap Corp	1.76% 15 Sep 2022		—		1,414,255
	General Mills Inc	5.25% 15 Aug 2013		—		170,521
	Glaxosmithkline	1.5% 08 May 2017		—		909,734
	Goldman Sachs	6.15% 01 Apr 2018		—		847,309
	Goldman Sachs Group	6.75% 01 Oct 2037		—		220,924
	Goldman Sachs Group	6.0% 15 Jun 2020		—		359,016
	Goldman Sachs Group	5.75% 24 Jan 2022		—		374,487
	Goldman Sachs Group	7.5% 15 Feb 2019		—		490,554
	Goldman Sachs Group	6.25% 01 Sep 2017		—		1,034,764
	Goldman Sachs Group Inc	5.75% 24 Jan 2022		—		535,804
	Goldman Sachs Group Inc	5.25% 27 Jul 2021		—		822,215
	Greenwich Capital Commercial	5.444% 10 Mar 2039		—		1,268,480
	GS Mortgage Securities Corp	1.0% 06 Mar 2020		—		156,430
	GS Mortgage Securities Corp	1.0% 10 Aug 2038		—		375,919
	GS Mortgage Securities Corp	2.773% 10 Nov 2045		—		688,749
	GS Mortgage Securities Corp	4.751% 10 Jul 2039		—		788,422
	Guardian Life Insurance	7.375% 30 Sep 2039		—		195,151
	Hanover Ins Group	7.625% 15 Oct 2025		—		163,250
	Harley Davidson Motorcycle	0.68% 15 Apr 2017		—		366,637
	Hartford Finl Svcs	4.0% 30 Mar 2015		—		82,394
	Hartford Finl Svcs	5.125% 15 Apr 2022		—		224,925
	Hartford Finl Svcs	5.5% 30 Mar 2020		—		270,654
	HCP Inc	5.375% 01 Feb 2021		—		569,385
	Health Care Inc	2.25% 15 Mar 2018		—		594,048
	Healthcare Realty Trust	5.125% 01 Apr 2014		—		180,521
	Healthcare Realty Trust	5.25% 15 Jan 2022		—		553,524
	Healthcare Reit	2.25% 15 Mar 2018		—		370,063
	Healthcare Rlty Tr	5.125% 01 Apr 2014		—		331,465
	Hess Corp	7.0% 15 Feb 2014		—		203,241
	Hewlett Packard Co	4.65% 09 Dec 2021		—		214,283
	Hewlett Packard Co	4.3% 01 Jun 2021		—		255,835
	Hewlett Packard Co	1.0% 30 May 2014		—		878,875
	Hewlett Packard Co	1.0% 24 May 2013		—		1,749,328
	Honda Auto Receivables	0.7% 16 Feb 2016		—		499,791
	Honda Auto Receivables	0.56% 15 May 2016		—		863,558

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	HSBC	5.1% 05 Apr 2021		—		264,723
	HSBC	4.0% 30 Mar 2022		—		549,574
	HSBC	2.375% 13 Feb 2015		—		902,314
	HSBC Holdings	4.0% 30 Mar 2022		—		725,651
	Humana Inc	7.2% 15 Jun 2018		—		522,822
	Huntington Auto Trust	1.01% 15 Jan 2016		—		297,911
	Huntington Auto Trust	1.18% 15 Jun 2017		—		1,137,758
	Hutch Whampoa	2.0% 08 Nov 2017		—		706,109
	Hyundai Auto Receivables	1.65% 15 Feb 2017		—		730,662
	Hyundai Capital Services	4.375% 27 Jul 2016		—		524,088
	ING Bank NV	2.0% 25 Sep 2015		—		500,760
	Intel Corp	1.35% 15 Dec 2017		—		969,517
	INTL BK Recon & Develop	9.25% 15 Jul 2017		—		165,579
	Intl Paper Co	7.95% 15 Jun 2018		—		264,617
	Intl Paper Co	4.75% 15 Feb 2022		—		330,862
	JPMorgan Chase Coml Mtg	4.302% 15 Jan 2038		—		22,772
	JPMorgan Chase Coml Mtg	1.0% 12 Dec 2044		—		113,428
	JPMorgan Chase Coml Mtg	5.198% 15 Dec 2044		—		210,194
	JPMorgan Chase Comm Mtg	2.749% 15 Nov 2043		—		406,437
	JPMorgan Chase Comm Mtg	2.84% 15 Dec 2047		—		894,162
	JPMorgan Chase & Co	4.35% 15 Aug 2021		—		168,936
	JPMorgan Chase & Co	4.5% 24 Jan 2022		—		242,568
	JPMorgan Chase & Co	4.4% 22 Jul 2020		—		313,572
	JPMorgan Chase & Co	4.75% 01 May 2013		—		351,002
	JPMorgan Chase & Co	6.0% 15 Jan 2018		—		466,745
	JPMorgan Chase & Co	3.45% 01 Mar 2016		—		517,555
	JPMorgan Chase & Co	4.5% 24 Jan 2022		—		964,760
	JPMorgan Chase & Co	6.0% 15 Jan 2018		—		1,038,508
	JPMorgan Chase & Co	3.7% 20 Jan 2015		—		1,334,077
	JPMorgan Chase & Co	5.125% 15 Sep 2014		—		1,352,769
	JPMorgan Chase Bank	6.0% 01 Oct 2017		—		461,542
	JPMorgan Chase Commercial Mortgage	5.42% 15 Jan 2049		—		1,533,141
	JPMorgan Chase Commercial Mortgage	1.0% 12 Dec 2044		—		257,426
	JPMorgan Chase Commercial Mortgage	5.552% 12 May 2045		—		587,814
	JPMorgan Chase Commercial Mortgage	1.0% 12 Jun 2043		—		772,979
	Kazmunaygas National	7.0% 05 May 2020		—		248,760
	Kinder Morgan Energy	4.15% 01 Mar 2022		—		206,983
	Kinder Morgan Energy	3.95% 01 Sep 2022		—		390,815
	Kinder Morgan Energy	6.85% 15 Feb 2020		—		761,374
	Kohls Corporation	3.25% 01 Feb 2023		—		196,844
	Korea Finance Corp	2.25% 07 Aug 2017		—		888,090
	Korea National Oil Corp	3.125% 3 Apr 2017		—		506,152
	Kroger Co	3.4% 15 Apr 2022		—		364,885
	Lab Corp	2.2% 23 Aug 2017		—		54,024
	LB UBS Commercial Mortgage	1.0% 15 Jun 2029		—		191,598
	LB UBS Commercial Mortgage	5.3% 15 Nov 2038		—		340,497
	LB UBS Commercial Mortgage	1.0% 15 Jun 2038		—		793,443
	Liberty PPTY Ltd	6.625% 01 Oct 2017		—		46,527
	Liberty PPTY Ltd	5.5% 15 Dec 2016		—		77,486

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Lincoln National Corp	4.3% 15 Jun 2015		—		146,788
	Lincoln National Corp	8.75% 01 Jul 2019		—		132,949
	LSI Open Position	0.01% 31 Dec 2060		—		13,863
	MacQuarie Bank	5.0% 22 Feb 2017		—		99,138
	MacQuarie Group Ltd	4.875% 10 Aug 2017		—		202,054
	Macys Retail Holdings	3.875% 15 Jan 2022		—		503,852
	Manufacturers & Traders Tr	1.0% 28 Dec 2020		—		247,119
	Marathon Petroleum Corp	3.5% 01 Mar 2016		—		62,253
	Marathon Petroleum Corp	5.125% 01 Mar 2021		—		359,021
	Marriott International	3.0% 01 Mar 2019		—		444,389
	McKesson Corp	0.95% 04 Dec 2015		—		200,089
	McKesson Corp	6.5% 15 Feb 2014		—		248,981
	McKesson Corp	3.25% 01 Mar 2016		—		1,081,319
	Merill Lynch Mortgage	1.0% 25 Aug 2036		—		62,039
	Merill Lynch Mortgage	4.96 12 Jul 2038		—		366,337
	Merill Lynch/Countrywide Mortgage	1.0% 12 Jun 2046		—		426,652
	Merill Lynch/Countrywide Mortgage	5.7% 12 Sep 2049		—		845,825
	Merill Lynch/Countrywide Mortgage	1.0% 12 Jul 2046		—		860,234
	Merrill Lynch & Co	6.875% 25 Apr 2018		—		176,238
	Merrill Lynch & Co	6.05% 16 May 2016		—		434,554
	Merrill Lynch & Co	6.4% 28 Aug 2017		—		1,251,290
	Merrill Lynch & Co	6.875% 25 Apr 2018		—		1,409,904
	Merrill Lynch/Countrywide Comm	1.0% 12 Mar 2051		—		1,265,186
	Merrill Lynch/Countrywide Comm	1.0% 12 Feb 2039		—		1,922,498
	Methanex Corp	3.25% 15 Dec 2019		—		235,281
	Metlife Inc	7.171% 15 Feb 2019		—		150,781
	Metlife Inc	6.75% 01 Jun 2016		—		352,076
	Metlife Inc	6.817% 15 Aug 2018		—		454,309
	Microsoft Corp	0.875% 15 Nov 2017		—		193,908
	Mid State Trust	8.33% 01 Apr 2030		—		254,291
	Mondelez International	6.5% 11 Aug 2017		—		297,611
	Mondelez International	6.125% 01 Feb 2018		—		1,013,988
	Morgan Stanley	6.25% 28 Aug 2017		—		111,556
	Morgan Stanley	5.55% 27 Apr 2017		—		221,514
	Morgan Stanley	5.5% 28 Jul 2021		—		345,264
	Morgan Stanley	5.625% 23 Sep 2019		—		352,746
	Morgan Stanley	5.5% 24 Jul 2020		—		548,257
	Morgan Stanley	1.0% 29 Apr 2013		—		683,817
	Morgan Stanley	3.45% 02 Nov 2015		—		685,475
	Morgan Stanley	5.95% 28 Dec 2017		—		767,086
	Morgan Stanley	1.0% 15 Oct 2015		—		1,322,192
	Morgan Stanley	6.625% 01 Apr 2018		—		1,464,621
	Morgan Stanley	6.625% 01 Apr 2018		—		1,493,339
	Morgan Stanley	5.5% 28 Jul 2021		—		531,175
	Morgan Stanley Capital I	1.0% 12 Aug 2041		—		169,858
	Morgan Stanley Capital I	1.0% 11 Jun 2042		—		611,718
	Morgan Stanley Capital I	4.989% 13 Aug 2042		—		1,118,088
	Morgan Stanley Capital I	4.89% 12 Jun 2047		—		1,326,674
	Morgan Stanley Capital I	5.325% 15 Dec 2043		—		193,944

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Motel 6 Trust	1.948% 05 Oct 2025		—		500,796
	Murphy Oil Corp	2.5% 01 Dec 2017		—		465,824
	Nabors Industries	9.25% 15 Jan 2019		—		940,650
	Nabors Industries Inc	9.25% 15 Jan 2019		—		385,280
	National Grid Plc	6.3% 01 Aug 2016		—		565,448
	NBC Universal Media	5.15% 30 Apr 2020		—		467,948
	NBC Universal Media	4.375% 01 Apr 2021		—		547,444
	NCUA Guaranteed Notes	2.9% 29 Oct 2020		—		737,666
	NCUA Guaranteed Notes	1.0% 07 Oct 2020		—		927,578
	NCUA Guaranteed Notes	1.0% 08 Dec 2020		—		3,044,881
	Nevada PWR Co	6.5% 01 Aug 2018		—		306,155
	News America Inc	9.25% 01 Feb 2013		—		230,461
	News America Inc	4.5% 15 Feb 2021		—		428,700
	Nextera Energy	1.611% 01 Jun 2014		—		527,068
	Niagara Mohawk Power	3.553% 01 Oct 2014		—		382,237
	NiSource Finance Corp	5.25% 15 Sep 2017		—		390,194
	NiSource Finance Corp	6.8% 15 Jan 2019		—		442,526
	Nissan Auto Lease Trust	0.45% 15 Jun 2015		—		249,501
	Nissan Auto Lease Trust	0.68% 15 Jul 2014		—		400,886
	Noble Energy	8.25% 01 Mar 2019		—		443,268
	Noble Holding Intl	4.9% 01 Aug 2020		—		40,561
	Nordea Bank AB	1.0% 14 Jan 2014		—		785,381
	Nordea Bank AB	4.875% 14 Jan 2021		—		1,356,870
	Norfolk Southern Corp	5.75% 01 Apr 2018		—		226,982
	Occidental Petroleum	1.75% 15 Feb 2017		—		964,481
	Omnicom Group	3.625% 01 May 2022		—		169,561
	Oneok Inc	4.25% 01 Feb 2022		—		513,638
	Oracle	1.2% 15 Oct 2017		—		1,456,569
	Orange & Rockland Utility	2.5% 15 Aug 2015		—		1,705,712
	Orix Corp	4.71% 27 Apr 2015		—		306,729
	Owens Corning Inc	6.5% 01 Dec 2016		—		228,897
	Penarth Master	1.0% 18 Dec 2014		—		542,057
	Pernod Richard SA	4.25% 15 Jul 2022		—		487,361
	Petrobras Intl	5.75% 20 Jan 2020		—		399,428
	Petronas Capital Ltd	5.25% 12 Aug 2019		—		456,943
	Phillips 66	4.3% 01 Apr 2022		—		539,112
	Phillips 66	4.3% 01 Apr 2022		—		1,198,027
	PNC Bank	6.875% 01 Apr 2018		—		517,423
	PNC Financial Services	1.0% 09 Nov 2022		—		245,086
	Precision Castparts Corp	1.25% 15 Jan 2018		—		698,040
	Prudential Financial	4.5% 16 Nov 2021		—		986,541
	Prudential Financial	5.375% 21 Jun 2020		—		1,361,605
	Prudential Financial	4.5% 15 Nov 2020		—		309,071
	Questar Corp	2.75% 01 Feb 2016		—		562,495
	Rabobank	3.95% 09 Nov 2022		—		543,962
	Rabobank	4.5% 11 Jan 2021		—		1,095,512
	Rabobank	3.95% 09 Nov 2022		—		253,516
	Raytheon Co	3.125% 15 Oct 2020		—		990,289
	Regency Centers LP	5.25% 01 Aug 2015		—		64,833

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Regency Centers LP	5.875% 15 Jun 2017		—		163,448
	Renaissance Home Equity	1.0% 25 Nov 2034		—		206,461
	Republic Services Inc	3.8% 15 May 2018		—		13,930
	Republic Services Inc	5.0% 01 Mar 2020		—		402,391
	Residential Asset Securities	1.0% 25 May 2033		—		8,354
	Reynolds American Inc	3.25% 01 Nov 2022		—		227,140
	Rio Tinto	1.625% 21 Aug 2017		—		320,723
	Rio Tinto	3.5% 02 Nov 2020		—		490,754
	Rowan Companies Inc	5.0% 01 Sep 2017		—		384,380
	Royal Bank Scotland	2.55% 18 Sep 2015		—		558,593
	Royal BK Scotland Plc	5.0% 01 Oct 2014		—		360,534
	Royal BK Scotland Plc	6.125% 11 Jan 2021		—		459,254
	Santander	3.724% 20 Jan 2015		—		1,444,166
	Santander Drive Auto Receivable	0.47% 15 Sep 2015		—		219,318
	Santander Holdings	4.625% 19 Apr 2016		—		132,471
	Santander Holdings	0.62% 15 Jul 2016		—		404,540
	Saxon Assets	1.0% 25 Aug 2032		—		219
	SCSLC 2010	1.0% 25 Jul 2025		—		2,207,313
	Sempra Energy	6.5% 01 Jun 2016		—		337,084
	Shell International	1.125% 21 Aug 2017		—		489,622
	SLH Open Position	0.01% 31 Dec 2060		—		3,960
	SLM Corp	5.0% 01 Oct 2013		—		99,782
	SLM Corp	5.375% 15 Jan 2013		—		146,200
	SLM Corp	7.25% 25 Jan 2022		—		322,372
	SLM Corp	8.45% 15 Jun 2018		—		456,146
	SLM Student Trust	1.0% 25 Sep 2019		—		1,306,876
	Smart Trust	1.22% 14 Nov 2013		—		80,921
	Smart Trust	0.67% 14 Jun 2015		—		331,406
	Smart Trust	1.25% 14 Aug 2018		—		1,064,997
	Snap On Inc	4.25% 15 Jan 2018		—		349,049
	Societe Generale	2.5% 15 Jan 2014		—		236,293
	Southern CA Edison	5.5% 15 Aug 2018		—		476,716
	Southern Cal Edison	5.75% 15 Mar 2014		—		703,512
	Southern Co	1.95% 01 Sep 2016		—		944,188
	Southwest Airlines Co	5.75% 15 Dec 2016		—		165,341
	Southwest Airlines Co	5.25% 01 Oct 2014		—		191,906
	Southwestern Elec Power	5.875% 01 Mar 2018		—		879,416
	Spectra Energy Capital	8.0% 01 Oct 2019		—		450,529
	Spectra Energy Capital	5.668% 15 Aug 2014		—		705,908
	Spectra Energy Partners	2.95% 15 Jun 2016		—		446,440
	SPI Electricity	6.15% 15 Nov 2013		—		251,946
	Staples Inc	9.75% 15 Jan 2014		—		291,406
	Stryker Corp	2.0% 30 Sep 2016		—		954,011
	Talent Yield Investments	4.5% 25 Apr 2022		—		524,655
	Teck Resources	3.75% 01 Feb 2023		—		684,794
	Teck Resources	4.5% 15 Jan 2021		—		699,917
	Telecom Italia	7.175% 18 Jun 2019		—		277,121
	Telecom Italia	6.999% 04 Jun 2018		—		1,236,594
	Telefonica Emisiones	5.462% 16 Feb 2021		—		171,475

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Telefonica Emisiones	5.462% 16 Feb 2021		—		1,486,117
	Thomson Reuters Corp	5.95% 15 Jul 2013		—		686,427
	Time Warner Cable Inc	5.0% 01 Feb 2020		—		357,476
	Time Warner Inc	7.5% 01 Apr 2014		—		359,077
	Time Warner Inc	4.7% 15 Jan 2021		—		471,586
	Time Warner Inc	3.4% 15 Jun 2022		—		472,746
	Time Warner Inc	4.7% 15 Jan 2021		—		549,259
	Time Warner Inc	4.875% 15 Mar 2020		—		592,003
	Total Capital SA	4.45% 24 Jun 2020		—		976,579
	Total Capital SA	3.0% 24 Jun 2015		—		1,441,294
	Toyota Motor Credit Corp	2.0% 15 Sep 2016		—		949,857
	Trans Canada Pipelines	3.4% 01 Jun 2105		—		300,161
	TransOcean Inc	2.5% 15 Oct 2017		—		354,573
	Travelers Cos	5.75% 15 Dec 2017		—		437,976
	Tyson Foods	4.5% 15 Jun 2022		—		538,099
	UBS AG	2.25% 28 Jan 2014		—		395,498
	UBS AG	5.875% 20 Dec 2017		—		580,055
	UBS AG	1.0% 28 Jan 2014		—		588,387
	UBS AG	5.875% 15 Jul 2016		—		581,803
	UFJ Finance Aruba	6.75% 15 Jul 2013		—		155,845
	Unicredito Luxem Fin	6.0% 31 Oct 2017		—		228,798
	Union Bank NA	1.0% 06 Jun 2014		—		688,004
	Unum Group	5.625% 15 Sep 2020		—		423,183
	US Bancorp	2.95% 15 Jul 2022		—		595,706
	US Bancorp	2.2% 15 Nov 2016		—		964,741
	US Cellular Corp	6.7% 15 Dec 2033		—		204,533
	Valero Energy	6.125% 01 Feb 2020		—		311,704
	Verizon Communications	2.45% 01 Nov 2022		—		970,121
	Vesey Street	1.0% 09 Jan 2016		—		1,893,130
	Vesey Street Investment	1.0% 01 Sep 2016		—		176,692
	Viacom Inc	5.625% 15 Sep 2019		—		75,728
	Wachovia Bank	4.8% 01 Nov 2014		—		281,419
	Wachovia Corp	5.5% 01 May 2013		—		331,943
	Wachovia Corp	5.5% 01 May 2013		—		1,783,574
	Walgreen Co	1.0% 13 Mar 2015		—		785,270
	Waste Mgmt Inc	7.375% 15 May 2029		—		64,337
	Waste Mgmt Inc	4.75% 30 Jun 2020		—		467,546
	Weatherford Bermuda	6.0% 15 Mar 2018		—		24,500
	Weatherford Bermuda	5.125% 15 Sep 2020		—		510,187
	Well Fargo & Company	1.0% 15 Jun 216		—		495,248
	Well Fargo & Company	1.5% 16 Jan 2018		—		619,931
	Wellpoint Inc	3.3% 15 Jan 2023		—		181,003
	Wellpoint Inc	1.25% 10 Sep 2015		—		628,722
	Wellpoint Inc	6.0% 15 Feb 2014		—		737,564
	Wells Fargo & Company	5.625% 11 Dec 2017		—		441,747
	Wells Fargo & Company	2.1% 08 May 2017		—		932,108
	Wells Fargo Commercial Mtg	2.918% 15 Oct 2045		—		1,429,542
	Western Union Co	2.375% 10 Dec 2015		—		78,335
	Westpac Banking	1.125% 25 Sep 2015		—		683,671

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	WF RBS Commercial Mortgage	1.0% 15 Nov 2044		—		1,281,522
	Williams Companies	3.7% 15 Jan 2023		—		323,442
	Williams Partners LP	4.0% 15 Nov 2021		—		354,452
	Williams Partners LP	3.35% 15 Aug 2022		—		540,115
	Willis North America Inc	7.0% 29 Sep 2019		—		91,889
	Willis North America Inc	7.0% 29 Sep 2019		—		212,494
	Willis North America Inc	6.2% 28 Mar 2017		—		349,536
	World Financial Network	1.76% 17 May 2021		—		320,267
	World Financial Network	3.14% 17 Jan 2023		—		1,519,465
	World Omni Auto	0.93% 16 Nov 2015		—		284,425
	WPP Finance	4.75% 21 Nov 2021		—		204,798
	Xerox Corp	5.625% 15 Dec 2019		—		457,363
	Xerox Corporation	8.25% 15 May 2014		—		78,674
	XL Group Plc	5.25% 15 Sep 2014		—		347,685

				—		293,972,163

	Benefit Responsive Interest Rate Wrapper Contracts

*	Transamerica	Open Ended Maturity		—		(495,139	)
*	Bank of America NT & SA	Open Ended Maturity		—		(495,998	)

				—		(991,137	)

	Synthetic Guaranteed Investment Contracts (contract value equals $708,605,720)				$	777,297,369


Commingled Investments:

*	SSgA Daily EAFE Fund	Commingled Investments		—		90,078,737
*	SSgA S & P 500 Flagship Fund	Commingled Investments		—		197,250,098
*	SSgA US Small CAP Index Futures FD CMT4	Commingled Investments		—		94,187,164

	Commingled Investments				$	381,515,999


Registered Investment Companies:

	Aberdeen Asia Pacific Income Fund	Registered Investment Company		—		54,714
	Acadian Emerging Markets Port Instl	Registered Investment Company		—		5,352
	Aegis Value Fund Inc	Registered Investment Company		—		4,924
	Aim European Growth Investors	Registered Investment Company		—		921
	Amana Mutual Fund Trust Income	Registered Investment Company		—		17,721
	Amer Century Target Maturities	Registered Investment Company		—		43,168
	American Capital Income Builder	Registered Investment Company		—		24,503
	American Capital World Growth & Income	Registered Investment Company		—		9,527
	American Capital World Growth & Income	Registered Investment Company		—		9,835
	American Century Balanced Investor	Registered Investment Company		—		2,633
	American Century Equity Income	Registered Investment Company		—		20,244
	American Century Heritage	Registered Investment Company		—		2,106
	American Europacific Growth	Registered Investment Company		—		8,853
	American Europacific Growth	Registered Investment Company		—		23,038

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	American Fundamental Investors	Registered Investment Company		—		10,012
	American High-Income	Registered Investment Company		—		13,141
	American Income Fund of America	Registered Investment Company		—		14,166
	American Income Fund of America	Registered Investment Company		—		7,609
	American Mutual Fund	Registered Investment Company		—		7,805
	American New Economy Fund	Registered Investment Company		—		7,977
	American New Perspective	Registered Investment Company		—		29,024
	American New World Fund	Registered Investment Company		—		9,479
	American Smallcap World Class F1	Registered Investment Company		—		8,255
	Ariel Appreciation	Registered Investment Company		—		20,186
	Ariel Growth	Registered Investment Company		—		11,248
	Artio International Equity Fund	Registered Investment Company		—		12,227
	Artisan International Investor Class	Registered Investment Company		—		11,500
	Artisan Intl Value Fund	Registered Investment Company		—		13,776
	Barclays Bank Plc Ipath	Registered Investment Company		—		1,081
	Barclays Bk Plc Ipath Etns	Registered Investment Company		—		9,493
	Barclays Bk Plc Ipath Index	Registered Investment Company		—		10,999
	Barclays Global Investors Funds Inc	Registered Investment Company		—		282
	Baron Asset	Registered Investment Company		—		3,111
	Baron Partners Fund	Registered Investment Company		—		19,384
	Berkshire Focus Fund	Registered Investment Company		—		3,113
	Berwyn Income Fund	Registered Investment Company		—		100,712
	Blackrock Energy & Resources A	Registered Investment Company		—		33,372
	Blackrock Equity Dividend Fund	Registered Investment Company		—		26,607
	Blackrock Global Allocation Fund	Registered Investment Company		—		19,697
	Blackrock Latin America Fund	Registered Investment Company		—		8,910
	Brandywine Blue	Registered Investment Company		—		8,641
	Bridgeway Aggressive Investor	Registered Investment Company		—		138,336
	Bridgeway Small Cap Growth	Registered Investment Company		—		16,220
	Brown Capital Mgt Small Company	Registered Investment Company		—		5,597
	Buffalo Mid Cap Fund	Registered Investment Company		—		6,599
	Buffalo Small Cap Growth	Registered Investment Company		—		21,824
	Calamos Growth	Registered Investment Company		—		58,493
	Calamos Growth Fund	Registered Investment Company		—		92,098
	Clipper	Registered Investment Company		—		9,342
	Columbia Acorn International	Registered Investment Company		—		8,731
	Columbia Dividend Income Fund	Registered Investment Company		—		9,686
	Columbia Marsico Intl	Registered Investment Company		—		4,573
	Columbia Real Estate Equity	Registered Investment Company		—		61,377
	Columbia Small Cap Core	Registered Investment Company		—		2,877
	Columbia Strategic Income Fund	Registered Investment Company		—		7,170
	Columbia Value And Restructuring	Registered Investment Company		—		37,931
	Credit Suisse Ag Nassau Brh Exchange Traded Nts	Registered Investment Company		—		915
	Credit Suisse Nassau Brh Elements	Registered Investment Company		—		—
	CRM Mid Cap Value Investor	Registered Investment Company		—		15,124
	Deutsche Bank Ag London Powershares Db Gold	Registered Investment Company		—		8,046
	Direxion Latin America	Registered Investment Company		—		1
	Direxion Shs ETF Tr Daily Finl Bear	Registered Investment Company		—		18,132
	Direxion Shs ETF Tr Daily Gold Miners	Registered Investment Company		—		6,725

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Direxion Shs ETF Tr Daily Small Cap Bear 3	Registered Investment Company		—		6,750
	Dodge & Cox Global Stock Fund	Registered Investment Company		—		5,569
	Dodge & Cox Income	Registered Investment Company		—		97,854
	Dodge & Cox International Stock Fund	Registered Investment Company		—		88,841
	Dodge & Cox Stock	Registered Investment Company		—		127,149
	Dreyfus Bond Market Index	Registered Investment Company		—		43,174
	Dreyfus Opportunistic Midcap Value	Registered Investment Company		—		12,305
	Dreyfus Premier Greater China	Registered Investment Company		—		875
	Driehaus International Discovery	Registered Investment Company		—		11,301
	DWS Rreef Real Estate Security	Registered Investment Company		—		3,417
	DWS S&P 500 Index	Registered Investment Company		—		6,231
	Dws Select Alternative Allocation Fund	Registered Investment Company		—		6,854
	Eagle Small Cap Growth Fund	Registered Investment Company		—		6,816
	Eaton Vance Ltd Duration Income Fund	Registered Investment Company		—		8,330
	Eaton Vance Worldwide Health Sciences	Registered Investment Company		—		2,262
	Fairholme Fund	Registered Investment Company		—		13,675
	Fam Value	Registered Investment Company		—		67,351
	Federated Strategic Value Dividend	Registered Investment Company		—		16,457
	Fidelity Advisor Mid Cap	Registered Investment Company		—		2,857
	Fidelity Advisor New Insights	Registered Investment Company		—		29,740
	Fidelity Canada	Registered Investment Company		—		10,770
	Fidelity Capital & Income	Registered Investment Company		—		44,886
	Fidelity Capital Appreciation	Registered Investment Company		—		18,278
	Fidelity Contrafund	Registered Investment Company		—		171,996
	Fidelity Convertible Securities	Registered Investment Company		—		11,551
	Fidelity Diversified International	Registered Investment Company		—		62,017
	Fidelity Dividend Growth	Registered Investment Company		—		25,224
	Fidelity Emerging Markets	Registered Investment Company		—		36,208
	Fidelity Freedom 2025	Registered Investment Company		—		7,044
	Fidelity High Income	Registered Investment Company		—		54,772
	Fidelity International Discovery	Registered Investment Company		—		66,542
	Fidelity International Real Estate Fund	Registered Investment Company		—		15,259
	Fidelity Large Capital Stock	Registered Investment Company		—		3,284
	Fidelity Latin America	Registered Investment Company		—		41,572
	Fidelity Leveraged Company Stock	Registered Investment Company		—		3,387
	Fidelity Low Priced Stock	Registered Investment Company		—		34,259
	Fidelity New Markets Income	Registered Investment Company		—		64,649
	Fidelity Select Biotechnology	Registered Investment Company		—		15,558
	Fidelity Select Chemicals	Registered Investment Company		—		9,716
	Fidelity Select Energy Service	Registered Investment Company		—		7,533
	Fidelity Select Materials Portfolio	Registered Investment Company		—		2,899
	Fidelity Select Natural Resources	Registered Investment Company		—		25,404
	Fidelity Select Technology	Registered Investment Company		—		2,896
	Fidelity Small Cap Discovery Fund	Registered Investment Company		—		22,522
	Fidelity Small Cap Stock	Registered Investment Company		—		4,913
	Fidelity Strategic Income	Registered Investment Company		—		24,956
	Fidelity Strategic Real Return	Registered Investment Company		—		6,750
	Fidelity US Bond Index	Registered Investment Company		—		9,054
	Fidelity Value	Registered Investment Company		—		1,964

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	First Eagle Global	Registered Investment Company		—		139,344
	Forward Global Emerg Markets Instl	Registered Investment Company		—		749
	Forward International Equity Fund	Registered Investment Company		—		45,063
	Franklin Global Real Estate	Registered Investment Company		—		7,225
	Franklin Growth	Registered Investment Company		—		7,069
	Franklin Strategic Inc	Registered Investment Company		—		9,785
	Franklin Strategic Income	Registered Investment Company		—		16,704
	Franklin Temp Mutual Series	Registered Investment Company		—		18,236
	Franklin Utilities Advisor Class	Registered Investment Company		—		7,872
	Fund*X Upgrader Fund	Registered Investment Company		—		20,844
	Fundamental Investors	Registered Investment Company		—		33,325
	Gabelli Equity Income Fund	Registered Investment Company		—		15,569
	Gabelli Utilities Fund	Registered Investment Company		—		9,992
	Gamco Growth Fund	Registered Investment Company		—		11,207
	Global Resources Fund	Registered Investment Company		—		7,787
	Global X Funds Global X Lithium ETF	Registered Investment Company		—		4,308
	Global X Funds Global X Uranium ETF	Registered Investment Company		—		2,604
	Goldman Sachs Asset Alloc Growth	Registered Investment Company		—		14,925
	Goldman Sachs Mid Cap Val Fund	Registered Investment Company		—		3,667
	Greenspring Fund	Registered Investment Company		—		19,689
	Growth Fund of America	Registered Investment Company		—		18,076
	Guggenheim Bric ETF	Registered Investment Company		—		10,806
	Hancock Horizon Burkenroad	Registered Investment Company		—		117,664
	Hancock John PFund Equity Income Fund	Registered Investment Company		—		4,382
	Harbor Bond Inst.	Registered Investment Company		—		158,876
	Harbor International	Registered Investment Company		—		97,456
	Harbor International Investor Shares	Registered Investment Company		—		70,282
	Heartland Value	Registered Investment Company		—		18,400
	Hennessy Equity and Income	Registered Investment Company		—		13,117
	Hennessy Focus Fund Investor Class	Registered Investment Company		—		2,643
	Hussman Strategic Growth	Registered Investment Company		—		12,943
	Hussman Strategic Total Return	Registered Investment Company		—		27,131
	Icon Energy	Registered Investment Company		—		8,517
	Icon Healthcare	Registered Investment Company		—		14,595
	Icon Information Technology	Registered Investment Company		—		2,466
	Icon Materials	Registered Investment Company		—		4,660
	Invesco Intl Growth Fund	Registered Investment Company		—		5,900
	Invesco Small Companies	Registered Investment Company		—		16,913
	Invesco Van Kampen Equity and Income	Registered Investment Company		—		18,891
	Ishares Barclays U S Aggregate Bd Fund	Registered Investment Company		—		23,333
	Ishares Comex Gold Trust	Registered Investment Company		—		18,395
	Ishares Iboxx $ Investop Corp Bond Fund	Registered Investment Company		—		42,927
	Ishares Inc Mcsi Bric Index Fund	Registered Investment Company		—		6,004
	Ishares Inc Msci Brazil Free Index Fund	Registered Investment Company		—		24,110
	Ishares Inc Msci Singapore Index Fund	Registered Investment Company		—		39,674
	Ishares Russell 1000 Growth	Registered Investment Company		—		2,764,247
	Ishares S&P North American Natl Res Fund	Registered Investment Company		—		7,632
	Ishares Silver Tr Ishares	Registered Investment Company		—		49,635
	Ishares Tr Cohen & Steers Realty Majors Index Fund	Registered Investment Company		—		36,975

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Ishares Tr Dow Jones U S Consumer Goods Fund	Registered Investment Company		—		13,536
	Ishares Tr Dow Jones US Technology Fund	Registered Investment Company		—		14,310
	Ishares Tr Ftse Nareit Mtg Plus Capped Index Fund	Registered Investment Company		—		7,334
	Ishares Tr Ftse Xinhua Hk China 25 Index Fund	Registered Investment Company		—		6,081
	Ishares Tr Iboxx $ High Yield Corp Bd Fund	Registered Investment Company		—		9,991
	Ishares Tr Msci Eafe Index Fund	Registered Investment Company		—		46,904
	Ishares Tr Msci Eafe Value Index Fund	Registered Investment Company		—		11,496
	Ishares Tr Msci Emerging Mkts Index Fund	Registered Investment Company		—		99,364
	Ishares Tr Nasdaq Biotechnology Index Fund	Registered Investment Company		—		13,789
	Ishares Tr Russell 1000 Index Fund	Registered Investment Company		—		18,334
	Ishares Tr Russell 2000 Value Index Fund	Registered Investment Company		—		11,627
	Ishares Tr Russell Midcap Value Index Fund	Registered Investment Company		—		10,304
	Ishares Tr S&P 500 Index Fund	Registered Investment Company		—		25,715
	Ishares Tr S&P Micap 400 Growth Index Fund	Registered Investment Company		—		11,676
	Ishares Tr S&P Midcap 400 Index Fund	Registered Investment Company		—		24,901
	Ishares Tr S&P Midcap 400 Value Index Fund	Registered Investment Company		—		76,442
	Ishares Tr S&P Smallcap 600/ Value Index Fund	Registered Investment Company		—		8,251
	Ishares Tr S&P U S PFund Stk Index Fund	Registered Investment Company		—		1,981
	Ishares Tr U S Treas Inflation Protected Secs Fund	Registered Investment Company		—		109,022
	Ishares Trust High Divid Equity Fund	Registered Investment Company		—		16,512
	Ishares Trust S&P Smallcap 600 Index Fund	Registered Investment Company		—		37,696
	Iva International Fund	Registered Investment Company		—		9,367
	Ivy Asset Strategy	Registered Investment Company		—		5,246
	Ivy Global Natural Resources	Registered Investment Company		—		7,666
	Ivy Mid Cap Growth	Registered Investment Company		—		7,629
	Janus Balanced	Registered Investment Company		—		48,879
	Janus Fund Class T Shares	Registered Investment Company		—		5,743
	Janus Global Life Sciences Fund	Registered Investment Company		—		7,826
	Janus Mercury	Registered Investment Company		—		12,052
	Janus Orion Fund	Registered Investment Company		—		6,900
	Janus Overseas	Registered Investment Company		—		13,321
	Janus Triton Fund	Registered Investment Company		—		24,639
	Janus Triton Fund	Registered Investment Company		—		54,474
	Janus Worldwide Fund	Registered Investment Company		—		7,637
	John Hancock Patriot Prem Divid Fund	Registered Investment Company		—		11,197
	JP Morgan Mid Cap Value Instl	Registered Investment Company		—		408
	JP Morgan Small Cap Equity Fund	Registered Investment Company		—		31,656
	Kinetics Small Cap Opportunities	Registered Investment Company		—		9,308
	Laudus Mondrian Emrg Markets	Registered Investment Company		—		20,610
	Lazard Developing Mrkts Eq	Registered Investment Company		—		1,832
	Liberty All Star Equity Fund	Registered Investment Company		—		106
	Loomis Sayles Bond Retail Shares	Registered Investment Company		—		50,878
	Loomis Sayles Global Bond Retail	Registered Investment Company		—		9,162
	Loomis Sayles Invst Grade Bond C	Registered Investment Company		—		8,564
	Mairs & Power Growth Fund	Registered Investment Company		—		23,200
	Managers Fremont Micro-Cap Fund	Registered Investment Company		—		21,898
	Managers Intermediate Duration Government	Registered Investment Company		—		23,656
	Manning & Napier Equity Series	Registered Investment Company		—		56,043
	Manning & Napier Overseas Series	Registered Investment Company		—		3,025

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Manning & Napier Pro Blend Max Term	Registered Investment Company		—		992
	Market Vectors ETF Tr Agribusiness ETF	Registered Investment Company		—		18,681
	Market Vectors ETF Tr Gold Miners ETF	Registered Investment Company		—		4,686
	Market Vectors ETF Tr India Small-Cap ETF	Registered Investment Company		—		11,133
	Market Vectors ETF Tr Steel ETF	Registered Investment Company		—		7,468
	Market Vectors ETF Tr Uran Nuclear Energy ETF	Registered Investment Company		—		8,643
	Marsico International Opportunities	Registered Investment Company		—		28,241
	Matthews Asia Dividend Fund	Registered Investment Company		—		12,477
	Matthews Asian Growth & Income Fund	Registered Investment Company		—		19,654
	Matthews Dragon Century China	Registered Investment Company		—		3,071
	Matthews India Fund	Registered Investment Company		—		8,576
	Matthews Pacific Tiger	Registered Investment Company		—		599
	Merger Fund	Registered Investment Company		—		49,084
	Meridian Fund	Registered Investment Company		—		34,071
	Meridian Value Fund	Registered Investment Company		—		7,163
	Metropolitan West Total Return Bond	Registered Investment Company		—		1,181
	Neuberger Berman Focus Investor	Registered Investment Company		—		3,995
	Neuberger Berman Real Estate Trust	Registered Investment Company		—		24,810
	Nicholas Fund	Registered Investment Company		—		24,310
	Nuveen Quality PFund Income Fund	Registered Investment Company		—		146,630
	Oakmark Equity & Income Fund	Registered Investment Company		—		244,182
	Oakmark Fund	Registered Investment Company		—		83,262
	Oakmark International	Registered Investment Company		—		35,798
	Oakmark International Small Cap	Registered Investment Company		—		16,321
	Oppenheimer Dev Markets	Registered Investment Company		—		25,340
	Oppenheimer Int’l Growth	Registered Investment Company		—		8,383
	Parnassus Equity Income Portfolio	Registered Investment Company		—		54,356
	Parnassus Fund	Registered Investment Company		—		4,998
	Parnassus Small Cap	Registered Investment Company		—		1,923
	Parnassus Workplace	Registered Investment Company		—		2,257
	Perkins Mid Cap Value	Registered Investment Company		—		6,530
	Permanent Portfolio Family of Funds	Registered Investment Company		—		313,953
	Permanent Versatile Bond Portfolio	Registered Investment Company		—		5,100
*	Pimco All Asset Inst Class	Registered Investment Company		—		300,542
*	Pimco Emerging Markets Bond Fund	Registered Investment Company		—		19,408
*	Pimco Investment Grade Corp Bond	Registered Investment Company		—		63,039
*	Pimco Real Return	Registered Investment Company		—		53,446
*	Pimco Stocksplus Tr Short Strategy	Registered Investment Company		—		13,481
*	Pimco Total Return	Registered Investment Company		—		13,255
*	Pimco Total Return	Registered Investment Company		—		27,519
	Powershares Db Commodity Index Fund	Registered Investment Company		—		4,778
	Powershares Db Multi Sectr Com Tr Power Shares	Registered Investment Company		—		3,938
	Powershares Exch Traded Fund	Registered Investment Company		—		8,735
	Powershares FTSE Rafi US 1000	Registered Investment Company		—		42,717
	Powershares Inter Dvd Achiev Powershares Funds	Registered Investment Company		—		24,770
	Powershares Qqq Tr Unit Ser 1	Registered Investment Company		—		100,952
	Primecap Odyssey Aggressive Growth Fund	Registered Investment Company		—		1,799
	Proshares Tr Ii Proshares Ultra Silver	Registered Investment Company		—		132
	Proshares Tr Ii Proshares Ultrashort Euro	Registered Investment Company		—		3,802

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Proshares Tr Proshares Ultra Nasdaq Biotechnology	Registered Investment Company		—		8,695
	Proshares Tr Proshares Ultrashort 20 Yr Treas	Registered Investment Company		—		3,173
	Proshares Tr Ultrapro Midcap400	Registered Investment Company		—		12,388
	Proshares Tr Ultrapro Russell2000	Registered Investment Company		—		10,148
	Proshares Tr Ultrashort Financials New	Registered Investment Company		—		302
	Proshares Tr Ultrashort FTSE Xinhua China	Registered Investment Company		—		1,758
	Proshares Trust Pshs Ulsht S&P 500	Registered Investment Company		—		33,278
	Proshares Trust Ultra Financials	Registered Investment Company		—		28,884
	Proshares Ultra Gas Proshares	Registered Investment Company		—		4,310
	Proshares Ultra Health Care Proshares	Registered Investment Company		—		16,832
	Proshares Ultra QQQProshares	Registered Investment Company		—		38,367
	Proshares Ultra S&P 500 Proshares	Registered Investment Company		—		30,983
	Prudential Jennison Natural Resources	Registered Investment Company		—		6,019
	Putnam High Income Conv & Bd Fund	Registered Investment Company		—		19,875
	Reaves Util Income Fund	Registered Investment Company		—		165
	Rivernorth Core Opportunity Fund	Registered Investment Company		—		37,015
	Royce Low Priced Stock Fund	Registered Investment Company		—		175,604
	Royce Microcap	Registered Investment Company		—		90,792
	Royce Opportunity Fund	Registered Investment Company		—		8,783
	Royce Pa Mutual	Registered Investment Company		—		170,204
	Royce Premier Series	Registered Investment Company		—		55,964
	Royce Special Equity	Registered Investment Company		—		17,172
	Royce Total Return Fund	Registered Investment Company		—		35,012
	RS Global Natural Resources Fund	Registered Investment Company		—		5,842
	Russell Emerging Markets	Registered Investment Company		—		5,627
	Rydex ETF Tr S&P 500 Eql Weighted Index Fund	Registered Investment Company		—		16,354
	Rydex Nasdaq 100 Inv Class	Registered Investment Company		—		2,557
	Schroder Emerging Market Equity Adv	Registered Investment Company		—		56,671
	Schwab 1000 Index Fund	Registered Investment Company		—		18,134
	Schwab Fundamental Emg Mkts Index Instl	Registered Investment Company		—		9,752
	Schwab Strategic Tr US Dividend Equity ETF	Registered Investment Company		—		39,676
	Schwab Strategic Tr US Large Cap Value ETF	Registered Investment Company		—		91,670
	Schwab Strategic Tr US Tips ETF	Registered Investment Company		—		57,454
	Scout International Fund	Registered Investment Company		—		1,061
	Sector Spdr Tr Shs Ben Int Financial	Registered Investment Company		—		8,195
	Sector Spdr Tr Shs Ben Int Technology	Registered Investment Company		—		7,397
	Sector Spdr Tr Shs Ben Int Utilities	Registered Investment Company		—		23,385
	Select Energy	Registered Investment Company		—		15,196
	Select Medical Delivery	Registered Investment Company		—		52,217
	Select Natural Gas	Registered Investment Company		—		2,197
	Select Sector Spdr Tr Health Care	Registered Investment Company		—		31,303
	Selected American Shares	Registered Investment Company		—		86,294
	Shelton S&P Mid Cap Index	Registered Investment Company		—		12,203
	Skyline Special Equities	Registered Investment Company		—		8,730
	Spartan 500 Index Fund Advantage	Registered Investment Company		—		111,947
	Spartan Total Market Index	Registered Investment Company		—		34,761
	Spdr Dow Jones Indl Average ETF Tr Unit Ser 1	Registered Investment Company		—		13,058
	Spdr Gold Tr Gold Shs	Registered Investment Company		—		298,441
	Spdr Index Shs Funds Dj Wilshire Intl Real Estate	Registered Investment Company		—		17,102

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Spdr Index Shs Funds S&P Intl Health Care	Registered Investment Company		—		14,350
	Spdr S&P 500 ETF Trust Unit Ser 1 S&P	Registered Investment Company		—		161,203
	Spdr Ser Tr Dj Wilshire Reit ETF	Registered Investment Company		—		47,609
	Spdr Ser Tr Dow Jones Mid Cap ETF	Registered Investment Company		—		11,127
	Spdr Ser Tr S&P Biotech ETF	Registered Investment Company		—		35,164
	Spdr Ser Tr S&P Pharmaceuticals ETF	Registered Investment Company		—		8,610
	Spdr Ser Tr Wells Fargo PFund Stock ETF	Registered Investment Company		—		19,158
*	SSgA Emerging Markets	Registered Investment Company		—		29,421
*	SSgA International Stock Selection	Registered Investment Company		—		7,139
	T Rowe Price Cap Appreciation	Registered Investment Company		—		239,058
	T Rowe Price Corporate Income	Registered Investment Company		—		121,903
	T Rowe Price Emerg Euro & Mediterranean	Registered Investment Company		—		2,585
	T Rowe Price Growth Stock	Registered Investment Company		—		9,354
	T Rowe Price Growth Stock Advisor	Registered Investment Company		—		3,192
	T Rowe Price Health Sciences	Registered Investment Company		—		22,049
	T Rowe Price High Yield Bond	Registered Investment Company		—		25,566
	T Rowe Price International Bond	Registered Investment Company		—		9,002
	T Rowe Price International Discovery Fund	Registered Investment Company		—		88,478
	T Rowe Price International Emerging Market Bond	Registered Investment Company		—		34,440
	T Rowe Price Latin America Fund	Registered Investment Company		—		12,453
	T Rowe Price Media & Telecommunications	Registered Investment Company		—		3,434
	T Rowe Price Mid Cap Growth	Registered Investment Company		—		23,953
	T Rowe Price Mid Cap Value	Registered Investment Company		—		21,720
	T Rowe Price New Horizons Fund	Registered Investment Company		—		22,722
	T Rowe Price Ret 2040 Fund	Registered Investment Company		—		5,195
	T Rowe Price Rtmt 2015 Advisor Class	Registered Investment Company		—		23,964
	T Rowe Price Rtmt 2025 Fund Adv Shrs	Registered Investment Company		—		24,815
	T Rowe Price Rtmt Fund 2040 Adv Shrs	Registered Investment Company		—		5,219
	T Rowe Price Small Cap Value Fund	Registered Investment Company		—		2,926
	Vanguard Target Moderate Allocation	Registered Investment Company		—		17,294
	Vanguard Target Retirement 2010 Fund	Registered Investment Company		—		6,676,351
	Vanguard Target Retirement 2015 Fund	Registered Investment Company		—		23,179,252
	Vanguard Target Retirement 2020 Fund	Registered Investment Company		—		31,181,459
	Vanguard Target Retirement 2025 Fund	Registered Investment Company		—		34,292,346
	Vanguard Target Retirement 2030 Fund	Registered Investment Company		—		42,046,615
	Vanguard Target Retirement 2035 Fund	Registered Investment Company		—		44,471,734
	Vanguard Target Retirement 2040 Fund	Registered Investment Company		—		35,322,198
	Vanguard Target Retirement 2045 Fund	Registered Investment Company		—		28,123,014
	Vanguard Target Retirement 2050 Fund	Registered Investment Company		—		24,016,067
	TCW Total Return Bond Class I	Registered Investment Company		—		55,247
	Templeton China World Fund Adv	Registered Investment Company		—		11,093
	Templeton Emerging Mrtks Small Cap	Registered Investment Company		—		6,249
	Templeton Global Bond	Registered Investment Company		—		9,524
	Templeton Global Bond	Registered Investment Company		—		52,962
	Templeton Global Bond Fund	Registered Investment Company		—		36,943
	Teton Westwood Equity	Registered Investment Company		—		1,084
	Teton Westwood Mighty Mites Fund	Registered Investment Company		—		21,195
	Teucrium Commodity Tr Corn Fund	Registered Investment Company		—		4,388
	The Contrarian Fund	Registered Investment Company		—		21,989

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	The Delafield Fund	Registered Investment Company		—		2,172
	Third Avenue Value	Registered Investment Company		—		5,043
	Thompson Plumb Growth Fund	Registered Investment Company		—		298
	Thornburg Intl Value Cl	Registered Investment Company		—		17,427
	Timothy Plan Conserv Growth	Registered Investment Company		—		20,176
	Timothy Plan Fixed Income	Registered Investment Company		—		4,182
	Timothy Plan Strategy Income Growth	Registered Investment Company		—		10,510
	Tocqueville Fund	Registered Investment Company		—		8,793
	Tocqueville Gold Fund	Registered Investment Company		—		7,386
	Touchstone Small Cap Value	Registered Investment Company		—		10,509
	Tributary Growth Oppt Instl	Registered Investment Company		—		5,157
	Tweedy Browne Global Value Fund	Registered Investment Company		—		102,938
	Undiscovered Mgrs Behavior Value Instl	Registered Investment Company		—		13,605
	United Sts Oil Fund LP Units	Registered Investment Company		—		4,505
	US Global Region East European	Registered Investment Company		—		2,403
	Value Line Small Cap Growth	Registered Investment Company		—		31,661
	Van Eck Global Hard Assets	Registered Investment Company		—		8,912
	Vanguard 500 Index Fund	Registered Investment Company		—		161,822
	Vanguard Balanced Index Investor	Registered Investment Company		—		7,318
	Vanguard Bd Index Fund Inc Total Bd Market ETF	Registered Investment Company		—		17,179
	Vanguard Developed Mrkts Index	Registered Investment Company		—		30,772
	Vanguard Div App Index Invt	Registered Investment Company		—		16,256
	Vanguard Dividend Growth Investor	Registered Investment Company		—		53,889
	Vanguard Energy Investor Fund	Registered Investment Company		—		198,663
	Vanguard Equity Income Investor	Registered Investment Company		—		11,423
	Vanguard Global Equity Investor	Registered Investment Company		—		21,978
	Vanguard GNMA Investor Cl	Registered Investment Company		—		19,221
	Vanguard Growth Index	Registered Investment Company		—		7,865
	Vanguard High Yld Corp Investor	Registered Investment Company		—		6,588
	Vanguard Index Funds Mid-Cap Value Index Viper	Registered Investment Company		—		35,874
	Vanguard Index Funds Vanguard Growth Vipers	Registered Investment Company		—		17,885
	Vanguard Index Funds Vanguard Large Cap Vipers	Registered Investment Company		—		16,535
	Vanguard Index Funds Vanguard Small Cap Vipers	Registered Investment Company		—		29,060
	Vanguard Index Fds Vanguard Small Cap Vipers	Registered Investment Company		—		4,120
	Vanguard Index Fds Vanguard Total Stk Mkt ETF	Registered Investment Company		—		68,081
	Vanguard Index Trust Small Cap Growth	Registered Investment Company		—		52,564
	Vanguard Inflation Protected Secs	Registered Investment Company		—		57,538
	Vanguard Intermed Term Tax Exempt	Registered Investment Company		—		1,410
	Vanguard Inter-Term Bond Index Port	Registered Investment Company		—		80,254
	Vanguard Intl Equity Index Funds MSCI Emerging	Registered Investment Company		—		97,544
	Vanguard Long Term US Treasury Investor	Registered Investment Company		—		31,904
	Vanguard Mid Cap Growth Index	Registered Investment Company		—		1,134
	Vanguard Mid Cap Index Investor	Registered Investment Company		—		201,135
	Vanguard Mid Cap Value Index	Registered Investment Company		—		6,849
	Vanguard Pacific Stock Index Inv	Registered Investment Company		—		6,284
	Vanguard Precious Metals & Mining Inv	Registered Investment Company		—		4,525
	Vanguard Reit Index Investor	Registered Investment Company		—		127,618
	Vanguard Reit Index Signal Shares	Registered Investment Company		—		10,220
	Vanguard Sector Index Funds Finls Vipers	Registered Investment Company		—		12,446

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2012


Identity of Issue		Description of Investment	Cost ⁽¹⁾		Current Value
	Vanguard Sector Index Funds Con Staples Vipers	Registered Investment Company		—		18,504
	Vanguard Sector Index Funds Energy Vipers	Registered Investment Company		—		10,226
	Vanguard Sector Index Funds Info Technology Vipers	Registered Investment Company		—		2,798
	Vanguard Sector Index Funds Telecommunication	Registered Investment Company		—		13,247
	Vanguard Sector Index Funds Utils Vipers	Registered Investment Company		—		15,513
	Vanguard Short Term Bond Index Investor	Registered Investment Company		—		173,322
	Vanguard Small Cap Stock	Registered Investment Company		—		72,086
	Vanguard Specialized Portfolios Div Appreciation Fund	Registered Investment Company		—		43,043
	Vanguard Strategic Equity Investor	Registered Investment Company		—		3,849
	Vanguard Target Retirement 2025 Fund	Registered Investment Company		—		1,152
	Vanguard Target Retirement 2040 Fund	Registered Investment Company		—		5,101
	Vanguard Target Retirement Income	Registered Investment Company		—		22,264,300
	Vanguard Total Intl Stock Index Inv	Registered Investment Company		—		6,210
	Vanguard Total Stock Market Investor	Registered Investment Company		—		5,361
	Vanguard Total Stock Mrkt Signal	Registered Investment Company		—		102,608
	Vanguard Value Index	Registered Investment Company		—		12,284
	Vanguard Wellington Investor	Registered Investment Company		—		118,273
	Vanguard Whitehall Funds High Dividend Yield ETF	Registered Investment Company		—		4,336
	Vanguard Windsor II Investor	Registered Investment Company		—		56,710
	Virtus Alternatives Diversifier	Registered Investment Company		—		6,518
	Virtus Real Estate Securities	Registered Investment Company		—		14,824
	Wasatch Hoisington US Treasury	Registered Investment Company		—		13,218
	Wasatch International Growth	Registered Investment Company		—		31,562
	Wasatch Micro-Cap Value Fund	Registered Investment Company		—		2,627
	Weitz Value	Registered Investment Company		—		2,658
	Wells Fargo Asia Pacific Fund	Registered Investment Company		—		100
	Wells Fargo C&B Mid Cap Value Fund	Registered Investment Company		—		161
	Wells Fargo Premier Large Co Growth	Registered Investment Company		—		46,904
	William Blair Int’L Growth Fund	Registered Investment Company		—		23,682
	World Precious Minerals Fund	Registered Investment Company		—		5,140
	Yacktman Focused Service Class	Registered Investment Company		—		35,805
	Yacktman Fund Service Class	Registered Investment Company		—		375,920

	Registered Investment Companies			—	$	307,109,230


*	Notes Receivables from Participants	Interest rates range from 4.25% to 10.5%			$	43,079,411


	Collateral Held on Loaned Securities

	* State Street Bank & Trust Co Quality D Short-term Investment Fund			—	$	18,841,812

	Total Investments and Notes Receivables from Participants			—	$	2,088,444,124

*	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.


	BAXTER INTERNATIONAL INC. AND SUBSIDIARIES
	INCENTIVE INVESTMENT PLAN

Date: June 26, 2013	By:	/s/ Robert J. Hombach
		Robert J. Hombach
		Member of the Administrative Committee