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, 2015

OR

 

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

For the transition period from                      to                     

Commission file number 1-4448

 

 

 

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

Baxter Healthcare of Puerto Rico Savings and Investment Plan

 

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

Baxter International Inc.

One Baxter Parkway

Deerfield, IL 60015

(224) 948-2000

 

 

 


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Index

December 31, 2015 and 2014

 

 

     Page(s)  

Report of Independent Registered Public Accounting Firm

     1   

Financial Statements

  

Statements of Net Assets Available for Benefits as of December 31, 2015 and 2014

     2   

Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 2015 and 2014

     3   

Notes to Financial Statements

     4-15   

Schedule H, Line 4i: Schedule of Assets (Held at End of Year) as of December 31, 2015

     16-36   


Report of Independent Registered Public Accounting Firm

To the Participants and Administrative Committee of

  the Baxter Healthcare of Puerto Rico Savings and Investment Plan

Deerfield, Illinois

We have audited the accompanying statements of net assets available for benefits of the Baxter Healthcare of Puerto Rico Savings and Investment Plan (the Plan) as of December 31, 2015 and 2014, 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, 2015 and 2014, and the changes in net assets available for benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

The supplemental Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2015 has been subjected to audit procedures performed in conjunction with the audit of the Baxter Healthcare of Puerto Rico Savings and Investment Plan’s financial statements. The supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the information presented in the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental schedule is fairly stated in all material respects in relation to the financial statements as a whole.

/s/ Crowe Horwath LLP

Oak Brook, Illinois

June 28, 2016

 


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Statements of Net Assets Available for Benefits

December 31, 2015 and 2014 (in thousands)

 

 

     2015     2014  

Assets

    

Investments

    

Cash and cash equivalents

   $ 1,049      $ 926   

Common stock (including securities on loan of $5 in 2015 and $46 in 2014)

     12,080        11,377   

U.S. government and government agency issues (including securities on loan of $160 in 2015 and $81 in 2014)

     434        469   

Corporate and other obligations (including securities on loan of $20 in 2015 and $44 in 2014)

     443        528   

Commingled funds

     20,191        19,137   

Synthetic guaranteed investment contracts

     21,948        21,773   

Collateral held on loaned securities

     188        175   
  

 

 

   

 

 

 

Total investments at fair value

     56,333        54,385   
  

 

 

   

 

 

 

Receivables

    

Note receivables from participants

     4,132        3,853   

Sponsor contributions

     975        698   

Accrued interest and dividends

     33        72   

Due from brokers for securities sold

     78        5   
  

 

 

   

 

 

 

Total receivables

     5,218        4,628   
  

 

 

   

 

 

 

Total assets

     61,551        59,013   
  

 

 

   

 

 

 

Liabilities

    

Accounts payable

     503        448   

Due to brokers for securities purchased

     157        101   

Collateral to be paid on loaned securities

     188        175   
  

 

 

   

 

 

 

Total liabilities

     848        724   
  

 

 

   

 

 

 

Net assets available for benefits, reflecting investments at fair value

     60,703        58,289   

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

     (799     (1,279
  

 

 

   

 

 

 

Net assets available for benefits

   $ 59,904      $ 57,010   
  

 

 

   

 

 

 

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

 

2


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Statements of Changes in Net Assets Available for Benefits

For the Years Ended December 31, 2015 and 2014 (in thousands)

 

 

     2015      2014  

Additions to net assets attributed to

     

Investment income

     

Net appreciation in fair value of investments

   $ 455       $ 2,153   

Interest

     620         615   

Dividends

     149         271   
  

 

 

    

 

 

 

Net investment income

     1,224         3,039   
  

 

 

    

 

 

 

Participant loan interest

     162         160   

Contributions

     

Sponsor

     2,690         2,234   

Participant

     3,957         3,533   
  

 

 

    

 

 

 
     6,647         5,767   
  

 

 

    

 

 

 

Total additions

     8,033         8,966   
  

 

 

    

 

 

 

Deductions from net assets attributed to

     

Benefits paid

     4,686         3,313   

Plan expenses

     453         423   
  

 

 

    

 

 

 

Total deductions

     5,139         3,736   
  

 

 

    

 

 

 

Net increase

     2,894         5,230   

Net assets available for benefits

     

Beginning of year

     57,010         51,780   
  

 

 

    

 

 

 

End of year

   $ 59,904       $ 57,010   
  

 

 

    

 

 

 

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

 

3


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

1. General Description of the Plan

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

The Plan is a defined contribution plan which became effective on January 1, 1998. The Plan was created for the purpose of providing retirement benefits to Puerto Rico employees of Baxter Healthcare S.A. (the Sponsor or the Company) a subsidiary of Baxter International Inc. (Baxter) and to encourage and assist employees in adopting a regular savings program by means of payroll deductions through a plan that qualifies under the applicable laws of both the Puerto Rico and the United States Internal Revenue Codes. Plan participants may authorize the Company to make payroll deductions under the Plan ranging from 1% to 50% of their pre-tax monthly compensation, limited to a maximum of $15,000 a year in both 2015 and 2014. Participants who have attained the age of 50 by the end of the year may contribute up to an additional $1,500 per year in “catch-up” contributions. Newly hired employees are deemed to have elected to contribute 3% of compensation unless they make a contrary election. The Company matches a participant’s savings contributions at the rate of 50 cents for each dollar of a participant’s pre-tax contribution, up to a maximum of 6% of a participant’s compensation, so that the maximum matching contribution for participants who contribute at least 6% of their compensation is 3% of compensation. The Company also contributes an additional non-matching 3% of compensation for employees that are not eligible to participate in the Company’s Puerto Rico defined benefit pension plan, which includes all new employees hired on or after January 1, 2008. Participants are immediately vested in their elective contributions plus actual earnings thereon. Vesting in the Company’s matching and non-matching contributions plus actual earnings thereon is based on years of service. The matching contributions vest in accordance with the following vesting schedule:

 

Years of Service

   Vesting%  

1

     20

2

     40

3

     60

4

     80

5 or more

     100

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

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

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

 

4


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

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 into any of 17 investment options: Stable Income Fund, Baxter Common Stock Fund, State Street S&P 500 Index Non-Lending Series Fund, State Street International Index Non-Lending Series Fund, State Street Russell Small Cap Index Non-Lending Series Fund, Northern Trust Domestic Mid Cap Fund, State Street Global Advisors Emerging Markets Fund (SSgA Emerging Markets Fund) and ten different Target Date Retirement Funds. However, non-matching contributions may not be invested in the Baxter Common Stock Fund. In addition, certain participants maintain shares in Edwards Lifesciences Corporation. These shares were placed into the Edwards Lifesciences Common Stock Fund in connection with Baxter’s 2000 spin-off of its cardiovascular business. Certain participants obtained shares in Baxalta Incorporated (Baxalta), in connection with the spin (as discussed below). These shares were placed into the Baxalta Common Stock Fund in connection with Baxter’s 2015 spin-off of its BioScience business. See Note 11 for a discussion of the conversion of the Baxalta Common Stock Fund into the Shire Common Stock Fund in June 2016, in connection with the merger of a wholly-owned subsidiary of Shire plc (Shire) with and into Baxalta, with Baxalta as the surviving company (the Merger). Participants are not able to make contributions or transfer existing account balances to the Edwards Lifesciences Common Stock Fund or the Shire Common Stock Fund (f/k/a the Baxalta Common Stock Fund), but may make transfers out of these funds at any time. Starting in 2013, participants are no longer able to make contributions to the Composite Fund and General Equity Fund, but may make transfers out of these funds at any time.

On July 1, 2015, Baxter completed the distribution of approximately 80.5% of the outstanding common stock of Baxalta to Baxter stockholders in connection with the separation of its biopharmaceutical business (the spin). The distribution was made to Baxter’s stockholders of record as of the close of business on June 17, 2015, who received one share of Baxalta common stock for each Baxter common share held as of such date. The Plan received 112,500 shares of Baxalta common stock on July 1, 2015 as a result of the distribution. The distribution was intended to take the form of a tax-free distribution for federal income tax purposes in the United States. As a result of the distribution, Baxalta became an independent public company whose shares trade on the New York Stock Exchange under the symbol “BXLT.”

 

2. Summary of Significant Accounting Policies

Basis of Accounting

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

New Accounting Standards

In May 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share (“NAV”) practical expedient (“ASU 2015-07”). ASU 2015-07 also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV practical expedient. ASU 2015-07 is effective for annual reporting periods beginning after December 15, 2016. The Plan Sponsor has chosen not to early adopt this standard and is currently evaluating the impact of this standard on the Plan’s financial statements.

In July 2015, the FASB issued new guidance impacting benefit plan accounting and reporting (“ASU 2015-12”). ASU 2015-12 requires an employee benefit plan to use contract value as the only measurement amount for fully benefit-responsive investment contracts. It also simplifies and increases the effectiveness of plan investment disclosure requirements for employee benefit plans, and provides employee benefit plans with a measurement-date practical expedient for asset fair value. ASU 2015-12 is effective for fiscal years beginning after December 15, 2015. The Plan Sponsor has chosen not to early adopt this standard and is currently evaluating the impact of this standard on the Plan’s financial statements.

 

5


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

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 certain funds are to track the performances of the S&P 500, Europe, Australasia and the Far East (EAFE), or Russell 2000 indexes. In addition, these funds include target date retirement funds, whose objective is to provide investors, who have a specific date in mind for retirement with a portfolio of investments. The underlying investments for all funds vary, with some holding diversified portfolios of domestic stocks, government agency and corporate bonds, and others holding collective investment funds. Each fund provides for daily redemptions by the Plan at reported net asset values per share, with no advance notice requirement.
Registered investment companies    Value based upon the closing price from a national security exchange on the valuation date.
Synthetic guaranteed investment contracts    Value based on the fair value of the underlying securities in the contract on the valuation date plus the fair value of the wrapper contracts, which is calculated using a replacement cost approach. The underlying securities are valued based upon the methodologies described above. In addition, this investment includes an individual separate account with Metropolitan Life Insurance Company (MetLife). The value of this separate account is based upon the unit value provided by MetLife as of the Plan’s financial statement date plus the fair value of the wrapper contracts, which is calculated using a replacement cost approach. The underlying securities primarily of the account, managed by a sub-advisor of the insurance company, consist of fixed income securities. See below for more information.

 

6


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

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, Prudential and MetLife. During 2014, the GIC with Bank of America was terminated and the Plan entered into a new GIC with Prudential. The portfolio of assets underlying the synthetic GICs primarily includes cash and cash equivalents, U.S. government and government agency issues, and corporate and other obligations.

The fair value of the synthetic GICs equals the total of the fair value of the underlying assets plus the fair value of the wrapper contracts. The fair value of the wrapper contracts is computed using a replacement cost approach that incorporates a comparison of the current fee rate on similar wrapper contracts to the fee being paid by the Plan. Using this approach, the fair value of the wrapper contracts were a loss of $14 thousand and a loss of $13 thousand at December 31, 2015 and 2014, respectively.

While Plan investments are presented at fair value in the Statement of Net Assets Available for Benefits, any material difference between the fair value of the Plan’s direct and indirect interests in fully benefit-responsive investment contracts and their contract value is presented as an adjustment line in the Statements of Net Assets Available for Benefits, because contract value is the relevant measurement attribute for that portion of the Plan’s net assets available for benefits. Contract value represents contributions, plus earnings, less participant withdrawals and administrative expenses. The wrapper contracts used by the Plan are fully benefit-responsive because the wrapper contract issuers are contractually obligated to make up any shortfall in the event that the underlying asset portfolio has been liquidated and is inadequate to cover participant withdrawals and transfers at contract value. There are currently no reserves against contract values for credit risk of the contract issuers or any other risk. The contract value for the synthetic GICs was $21.1 million and $20.5 million at December 31, 2015 and 2014, 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 2.3% and 1.9% at December 31, 2015 and 2014, respectively. The average interest rate credited to participants on the synthetic GICs was approximately 2.7% and 2.8% for the years ended December 31, 2015 and 2014. The credit ratings for Transamerica, Prudential and MetLife were AA- at both December 31, 2015 and 2014.

 

7


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

Events that lead to market value withdrawals that exceed 15 percent of the contract value of the GIC’s of Prudential and Transamerica or 10 percent of the contract value of the GIC of MetLife would limit the ability of the Plan to transact at contract value with participants. These events include restructurings, early retirement plans, divestitures, bankruptcies, or legal, tax or regulatory changes. The Plan sponsor believes that the occurrence of any such event is remote.

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

Notes Receivables from Participants

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

Payment of Benefits and Fees

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

Use of Estimates

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

Other

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

Risks and Uncertainties

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

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

 

8


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

3. Eligibility Requirements

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

 

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

 

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

 

  C. Puerto Rico employees who are not leased employees.

 

4. Administration of the Plan

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

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

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

 

5. Fair Value of Measurements

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

 

   

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

 

   

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

 

   

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

 

9


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

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

 

           Basis of Fair Value Measurement  
(in thousands)    Balance at
December 31,
2015
   

Quoted Prices
in Active
Markets for
Identical
Assets

(Level 1)

    

Significant
Other
Observable
Inputs

(Level 2)

    

Significant
Unobservable
Inputs

(Level 3)

 

Assets

          

Cash and cash equivalents

   $ 1,049      $ —         $ 1,049       $ —     

Common stock:

          

Healthcare

     9,560        9,560         —           —     

Consumer products

     994        994         —           —     

Information technology

     1,110        1,110         —           —     

Financial services

     184        184         —           —     

Industrial services and materials

     164        164         —           —     

Energy

     61        61         —           —     

Other

     7        7         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total common stock

     12,080        12,080         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

U.S. government and government agency issues

     434        —           434         —     

Corporate and other obligations

     443        —           443         —     

Commingled funds:

          

State Street S&P 500 Index Non-Lending Series Fund

     7,961        —           7,961         —     

State Street International Index Non-Lending Series Fund

     2,365        —           2,365         —     

State Street Russell Small Cap Index Non-Lending Series Fund

     2,700        —           2,700         —     

Target date retirement funds

     6,625        —           6,625         —     

Other

     540        —           540         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total commingled funds

     20,191        —           20,191         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Synthetic guaranteed investment contracts:

          

Corporate and other obligations

     6,773        —           6,773         —     

U.S. government and government agency issues

     9,052        —           9,052         —     

Individual separate account

     5,171        —           5,171         —     

Cash and cash equivalents

     966        —           966         —     

Wrapper contracts

     (14     —           —           (14
  

 

 

   

 

 

    

 

 

    

 

 

 

Total synthetic guaranteed investment contracts

     21,948        —           21,962         (14
  

 

 

   

 

 

    

 

 

    

 

 

 

Collateral held on loaned securities

     188        —           188         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total assets

   $ 56,333      $ 12,080       $ 44,267       $ (14
  

 

 

   

 

 

    

 

 

    

 

 

 

Liability

          

Collateral to be paid on loaned securities

   $ 188      $ 5       $ 183       $ —     
  

 

 

   

 

 

    

 

 

    

 

 

 

 

10


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

           Basis of Fair Value Measurement  
(in thousands)    Balance at
December 31,
2014
   

Quoted Prices
in Active
Markets for
Identical
Assets

(Level 1)

    

Significant
Other
Observable
Inputs

(Level 2)

    

Significant
Unobservable
Inputs

(Level 3)

 

Assets

          

Cash and cash equivalents

   $ 926      $ —         $ 926       $ —     

Common stock:

          

Healthcare

     8,739        8,739         —           —     

Consumer products

     866        866         —           —     

Information technology

     970        970         —           —     

Financial services

     296        296         —           —     

Industrial services and materials

     331        331         —           —     

Energy

     143        143         —           —     

Other

     32        32         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total common stock

     11,377        11,377         —           —     
  

 

 

   

 

 

    

 

 

    

 

 

 

U.S. government and government agency issues

     469        —           469         —     

Corporate and other obligations

     528        —           528         —     

Commingled funds:

          

SSgA S&P 500 Fund

     7,777        —           7,777         —     

SSgA EAFE Equity Fund

     2,387        —           2,387         —     

SSgA Small Cap Fund

     2,848        —           2,848         —     

Target date retirement funds

     5,762        —           5,762         —     

Other

     363        —           363         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total commingled funds

     19,137        —           19,137         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Synthetic guaranteed investment contracts:

          

Corporate and other obligations

     6,524        —           6,524         —     

U.S. government and government agency issues

     9,398        —           9,398         —     

Individual separate account

     5,121           5,121      

Cash and cash equivalents

     743        —           743         —     

Wrapper contracts

     (13     —           —           (13
  

 

 

   

 

 

    

 

 

    

 

 

 

Total synthetic guaranteed investment contracts

     21,773        —           21,786         (13
  

 

 

   

 

 

    

 

 

    

 

 

 

Collateral held on loaned securities

     175        —           175         —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Total assets

   $ 54,385      $ 11,377       $ 43,021       $ (13
  

 

 

   

 

 

    

 

 

    

 

 

 

Liability

          

Collateral to be paid on loaned securities

   $ 175      $ 47       $ 128       $ —     
  

 

 

   

 

 

    

 

 

    

 

 

 

Transfers between hierarchy measurement levels are recognized by the Plan as of the beginning of the reporting period. The fair value of commingled funds is valued based upon the net asset value of the underlying securities and is classified as Level 2. The Plan did not have any transfers between Levels 1 and 2 during 2015 and 2014.

 

11


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

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, 2013

   $ (4

Additions

     (3

Settlements

     (2

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

     (4
  

 

 

 

Balance at December 31, 2014

     (13
  

 

 

 

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

     (1
  

 

 

 

Balance at December 31, 2015

   $ (14
  

 

 

 

The unrealized losses from the wrapper contracts are excluded from the net appreciation reported for the Plan, but are instead reflected in the change in adjustment from fair value to contract value for fully benefit responsive contracts reported on the statements of net assets available for benefits. In 2014, the additions are due to the new contract with Prudential and the settlements are due to termination of the contract with Bank of America as detailed in Note 2.

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

 

6. Investments

Investments representing five percent or more of the Plan’s net assets available for benefits at December 31, 2015 and 2014 are summarized as follows:

 

(values in thousands, except per share)    2015      2014  

Baxter common stock, 127,753 shares and 108,705 shares at December 31, 2015 and 2014, respectively

   $ 4,874       $ 7,967   

Baxalta common stock, 102,705 shares at December 31, 2015

     4,009         *   

State Street S&P 500 Index Non-Lending Series Fund

     7,961         *   

SSgA S&P 500 Fund

     *         7,777   

MetLife Individual Separate Account

     5,171         5,121   

SSgA Small Cap Fund

     *         2,848   

 

* Does not meet 5% threshold

 

12


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

Investments as of December 31, 2015 and 2014 are segregated into various investment fund options as follows:

 

     2015      2014  

(in thousands)

     

Cash (available for investment)

   $ 140       $ 171   

Stable Income Fund

     22,609         22,358   

Baxter Common Stock Fund

     4,936         8,021   

Baxalta Fund

     4,048         —     

Composite Fund

     2,024         2,202   

General Equity Fund

     2,061         2,206   

State Street S&P 500 Index Non-Lending Series Fund

     7,961         —     

SSgA S&P 500 Fund

     —           7,777   

State Street International Index Non-Lending Series Fund

     2,365         —     

SSgA EAFE Equity Fund

     —           2,387   

Edwards Lifesciences Common Stock Fund

     136         114   

State Street Russell Small Cap Index Non-Lending Series Fund

     2,700         —     

SSgA Small Cap Fund

     —           2,849   

Northern Trust Domestic Mid Cap Fund

     453         323   

SSgA Emerging Markets Fund

     87         40   

Target Date Retirement Funds

     6,625         5,762   

Collateral held on loaned securities

     188         175   
  

 

 

    

 

 

 

Total investments at fair value

     56,333         54,385   

Adjustment from fair value to contract value for Stable Income Fund

     (799      (1,279
  

 

 

    

 

 

 

Total investments

   $ 55,534       $ 53,106   
  

 

 

    

 

 

 

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

 

     2015      2014  

(in thousands)

     

Baxter common stock

   $ (359    $ 419   

Other common stock

     1,036         327   

U.S. government and government agency issues

     (13      23   

Corporate and other obligations

     (43      7   

Commingled funds

     (166      1,377   
  

 

 

    

 

 

 
   $ 455       $ 2,153   
  

 

 

    

 

 

 

 

7. Securities Lending Transactions

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

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

 

13


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

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, 2015 and 2014, the Plan had securities on loan with a fair market of $185 thousand and $171 thousand, respectively, with cash collateral received of $188 thousand and $175 thousand, respectively, which was invested in the State Street Quality D Short-Term Investment Fund. Investments underlying this fund primarily consisted of cash and cash equivalents and asset-backed securities as of both December 31, 2015 and 2014, and the net asset value of this fund was approximately $1.00 per unit. As of December 31, 2015 and 2014 the cash collateral received is reflected at its fair value of $188 thousand and $175 thousand in the 2015 and 2014 Statements of Net Assets Available for Benefits, respectively.

Non-cash collateral of $23 thousand and $6 thousand received for securities on loan at December 31, 2015 and December 31, 2014, respectively, consisted of U.S. government and government agency issues, equity securities, and corporate and other obligations held by the Custodian on behalf of the Plan. Non-cash collateral is not included with the collateral balance on the 2015 and 2014 Statements of Net Assets Available for Benefits because it may not be sold or repledged. A portion of the income generated upon investment of cash collateral is remitted to the Borrowers, and the remainder is allocated between the Plan and the Custodian in its capacity as a security agent. Securities lending income allocated to the Plan amounted to $361 and $326 for 2015 and 2014, respectively. Securities lending income is classified as interest income in the Statements of Changes in Net Assets Available for Benefits.

 

8. Plan Termination

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

 

9. Tax Status of the Plan

As of August 13, 2012, the Puerto Rico Treasury Department has determined and informed the Plan sponsor that the Plan and the related trust are designed in accordance with applicable sections entitling exemption from income taxes. The Plan sponsor has also obtained a favorable determination letter dated October 22, 2011, from the Internal Revenue Service (IRS) stating that the Plan is in compliance with IRS regulations. A Form 5300 Application for Determination for Employee Benefit Plan was filed with the IRS on January 21, 2016 to request an updated favorable determination letter for the Plan.

U.S. GAAP requires plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2015 and 2014, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however there are currently no audits for any tax periods in progress. The plan administrator believes it is no longer subject to income tax examinations for years prior to 2012.

 

14


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

Notes to Financial Statements

December 31, 2015 and 2014

 

 

10. Parties-in-Interest Transactions

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, 2015 and 2014, the Plan held shares of common stock of State Street Corporation and participation units in commingled funds and short-term investment funds of State Street Bank and Trust Company, the Plan Custodian; shares of common stock and bonds of Baxter, the Plan sponsor; shares of common stock of Baxalta, spin-off company; loans with participants; shares of common stock and units of commingled funds managed by Northern Trust Corporation and Vanguard, investment managers for the Plan; shares of common stock, bonds, individual separate accounts or interest rate wrapper contracts of Prudential, Transamerica, and Metlife, issuers of the Plan’s fully benefit-responsive contracts; and shares of common stock of Edward Lifesciences Corporation and Cardinal, entities the Company has previously spun off. These transactions are allowable party-in-interest transactions under ERISA and the regulations promulgated thereunder.

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

 

11. Subsequent Event

On June 3, 2016, a wholly-owned subsidiary of Shire plc (Shire) merged with and into Baxalta, with Baxalta as the surviving company in the Merger. In connection with the closing of the Merger, each Baxalta stockholder received a combination of cash and Shire equity securities. Participants invested in the Baxalta Common Stock Fund at the closing of the Merger were able to direct the investment of the cash portion of the related merger consideration into certain investment alternatives within the Plan. In the event that a participant did not make an investment election, the cash portion was invested in the Plan’s qualified default investment alternative.

Additionally, in connection with the Merger, the Baxalta Common Stock Fund became the Shire Stock Fund, holding Shire American Depository Shares and cash (for liquidity purposes).

 

15


 

 

SUPPLEMENTAL SCHEDULE


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
   Cash & Cash Equivalents:         
  

US Dollar

   Cash      —           (18,615)   
  

CAD Dollar

   Cash         89   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           659,806   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           86,712   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           131,022   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           50,845   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           31,677   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           61,587   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           39,887   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           3,492   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           1,110   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           1,223   
           

 

 

 
  

Cash & Cash Equivalents

        —           1,048,835   
           

 

 

 

**

   Common Stock:         
  

Abbott Laboratories

   Common Stock      —           41,902   
  

Adobe Systems Inc

   Common Stock      —           59,321   
  

Aercap Holdings Nv Common Stock Eur.01

   Common Stock      —           700   
  

Agilent Technologies Inc

   Common Stock      —           904   
  

Alexion Pharmaceuticals Inc

   Common Stock      —           52,770   
  

Alibaba Group Holding Sp Adr

   Common Stock      —           45,391   
  

Allergan Plc Common Stock Usd.0033

   Common Stock      —           47,448   
  

Allergan Plc Common Stock Usd.0033

   Common Stock      —           9,561   
  

Ally Financial Inc Common Stock Usd.1

   Common Stock      —           5,934   
  

Alphabet Inc Cl A Common Stock Usd.001

   Common Stock      —           80,665   
  

Alphabet Inc Cl A Common Stock Usd.001

   Common Stock      —           893   
  

Alphabet Inc Cl C Common Stock Usd.001

   Common Stock      —           82,331   
  

Amazon.Com Inc

   Common Stock      —           145,824   
  

American Express Co Common Stock Usd.2

   Common Stock      —           6,351   
  

American International Group

   Common Stock      —           837   
  

American Tower Corp

   Common Stock      —           32,180   
  

American Tower Corp

   Common Stock      —           4,937   
  

Ameriprise Financial Inc

   Common Stock      —           6,224   
  

Analog Devices Inc Common Stock Usd.167

   Common Stock      —           747   
  

Aon Plc

   Common Stock      —           1,246   
  

Apple Inc

   Common Stock      —           138,897   
  

Apple Inc

   Common Stock      —           6,938   
  

Applied Materials Inc

   Common Stock      —           1,135   
  

Arm Holdings Plc Spons Adr

   Common Stock      —           26,468   
  

Atlassian Corp Plc Class A Common Stock Usd.1

   Common Stock      —           1,196   
  

Bank of America

   Common Stock      —           1,046   

*

  

Baxalta Inc Common Stock Usd.01

   Common Stock      —           4,008,572   

*

  

Baxter International Inc

   Common Stock      —           4,873,776   

 

16


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
  

Biogen Idec Inc

   Common Stock      —           41,930   
  

Biomarin Pharmaceutical Inc Common Stock Usd.001

   Common Stock      —           6,900   
  

Boeing Co

   Common Stock      —           54,665   
  

Boeing Co

   Common Stock      —           6,015   
  

Bp Plc Spons Adr

   Common Stock      —           1,013   
  

Bristol Myers Squibb Co

   Common Stock      —           63,342   
  

Capital One Financial Corp

   Common Stock      —           1,072   

*

  

Cardinal Health Inc

   Common Stock      —           —     
  

CBS Corp

   Common Stock      —           955   
  

Celgene Corp

   Common Stock      —           62,358   
  

Chevron Corp Common Stock Usd.75

   Common Stock      —           9,612   
  

Cit Group Inc

   Common Stock      —           1,019   
  

Citigroup Inc

   Common Stock      —           25,544   
  

Citigroup Inc

   Common Stock      —           5,704   
  

Citigroup Inc

   Common Stock      —           1,048   
  

Citizens Financial Group

   Common Stock      —           1,026   
  

Comcast Corp

   Common Stock      —           6,037   
  

Comcast Corp

   Common Stock      —           915   
  

Concho Resources Inc

   Common Stock      —           20,457   
  

Costco Wholesale Corp

   Common Stock      —           50,005   
  

Crown Castle Intl Corp Reit Usd.01

   Common Stock      —           4,566   
  

Delta Air Lines Inc Common Stock Usd.0001

   Common Stock      —           3,684   
  

Discovery Communications

   Common Stock      —           3,740   
  

Dollar General Corp Common Stock Usd.875

   Common Stock      —           3,009   

*

  

Edwards Lifesciences Corp

   Common Stock      —           134,361   
  

Eog Resources Inc

   Common Stock      —           11,720   
  

Eqt Corp Common Stock

   Common Stock      —           915   
  

Exelon Corp

   Common Stock      —           900   
  

Express Scripts Holding Co

   Common Stock      —           3,778   
  

Facebook Inc

   Common Stock      —           124,088   
  

Flextronics Intl Ltd

   Common Stock      —           939   
  

General Electric Co

   Common Stock      —           29,015   
  

General Electric Co

   Common Stock      —           5,689   
  

General Electric Co

   Common Stock      —           926   
  

Goldman Sachs Group

   Common Stock      —           5,015   
  

Grupo Televisa Sa Spon Adr Adr

   Common Stock      —           3,175   
  

Home Depot Inc Common Stock Usd.05

   Common Stock      —           20,305   
  

Honeywell International Inc

   Common Stock      —           6,239   
  

Hp Inc Common Stock Usd.01

   Common Stock      —           2,412   
  

Illumina Inc

   Common Stock      —           40,539   
  

Inditex Unspon Adr

   Common Stock      —           54,604   
  

Intel Corp Common Stock Usd.001

   Common Stock      —           3,560   
  

Intercontinental Exchange

   Common Stock      —           6,750   
  

International Paper Co

   Common Stock      —           968   
  

Invesco Ltd

   Common Stock      —           950   
  

Jd.Com Inc Adr Adr Usd.00002

   Common Stock      —           17,667   
  

Johnson Controls Inc

   Common Stock      —           5,745   
  

Keysight Technologies

   Common Stock      —           899   
  

Kroger Co Common Stock Usd1.

   Common Stock      —           48,028   
  

Las Vegas Sands Corp

   Common Stock      —           4,950   

 

17


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
  

Liberty Global Plc Series C Common Stock Usd.01

   Common Stock      —           991   
  

Liberty Media Corp

   Common Stock      —           2,608   
  

Linkedin Corp

   Common Stock      —           49,315   
  

Lowes

   Common Stock      —           719   
  

Mallinckrodt Plc Common Stock Usd.2

   Common Stock      —           4,385   
  

Marriott International

   Common Stock      —           42,904   
  

Marsh & Mclennan Cos

   Common Stock      —           899   
  

Mastercard Inc

   Common Stock      —           86,324   
  

Mcdonald S Corp Common Stock Usd.01

   Common Stock      —           30,479   
  

Mcgraw Hill Financial Inc

   Common Stock      —           31,860   
  

Mckesson Corp Common Stock Usd.01

   Common Stock      —           7,273   
  

Medtronic Plc Common Stock Usd.1

   Common Stock      —           6,440   
  

Merck & Co. Inc.

   Common Stock      —           999   
  

Microsoft Corp

   Common Stock      —           40,116   
  

Microsoft Corp

   Common Stock      —           1,049   
  

Monsanto Co

   Common Stock      —           24,052   
  

Monsanto Co

   Common Stock      —           7,386   
  

Monster Beverage Corp Common Stock

   Common Stock      —           26,018   
  

Morgan Stanley

   Common Stock      —           26,973   
  

Mosaic Co

   Common Stock      —           3,156   
  

Netflix Inc

   Common Stock      —           71,603   
  

Nike Inc

   Common Stock      —           83,970   

*

  

Northern Trust Corp

   Common Stock      —           6,173   
  

Novartis Ag Adr

   Common Stock      —           6,938   
  

Novo Nordisk A/S Spons Adr

   Common Stock      —           30,657   
  

Nxp Semiconductors Nv Common Stock

   Common Stock      —           21,014   
  

O Reilly Automotive Inc

   Common Stock      —           49,623   
  

Occidental Petroleum Corp

   Common Stock      —           5,041   
  

Omnicom Group

   Common Stock      —           6,898   
  

Oracle Corp

   Common Stock      —           6,908   
  

Oracle Corp

   Common Stock      —           987   
  

Palo Alto Networks Inc Common Stock Usd.0001

   Common Stock      —           12,593   
  

Pentair Plc

   Common Stock      —           5,459   
  

Pnc Financial Services Group

   Common Stock      —           5,780   
  

Priceline.Com Inc

   Common Stock      —           48,959   
  

Procter & Gamble Co

   Common Stock      —           858   
  

Realogy Holdings Corp

   Common Stock      —           842   
  

Red Hat Inc

   Common Stock      —           46,711   
  

Regeneron Pharmaceuticals Common Stock Usd.001

   Common Stock      —           41,349   
  

Salesforce.Com Inc

   Common Stock      —           62,440   
  

Sanofi Adr

   Common Stock      —           1,037   
  

Schlumberger Ltd

   Common Stock      —           11,993   
  

Sherwin Williams Co/The Common Stock Usd1.

   Common Stock      —           15,776   
  

Shire Plc Adr

   Common Stock      —           51,201   
  

Splunk Inc

   Common Stock      —           27,296   
  

Starbucks Corp

   Common Stock      —           62,705   
  

Tencent Holdings Ltd

   Common Stock      —           55,065   
  

Tesla Motors Inc

   Common Stock      —           34,357   
  

Teva Pharmaceutical Sp Adr Adr

   Common Stock      —           4,602   
  

Texas Instruments Inc

   Common Stock      —           2,532   

 

18


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
  

Texas Instruments Inc

   Common Stock      —           814   
  

Thermo Fisher Scientific Inc

  

Common Stock

     —           958   
  

Time Warner Inc

  

Common Stock

     —           28,373   
  

Time Warner Inc

  

Common Stock

     —           611   
  

Tjx Companies Inc

  

Common Stock

     —           36,161   
  

Under Armour Inc

  

Common Stock

     —           42,033   
  

Vertex Pharmaceuticals Inc

  

Common Stock

     —           16,015   
  

Visa Inc

  

Common Stock

     —           90,207   
  

Vodafone Group Plc Sp Adr

  

Common Stock

     —           4,863   
  

Vodafone Group Plc Sp Adr

  

Common Stock

     —           784   
  

Walt Disney Co

  

Common Stock

     —           53,468   
  

Whirlpool Corp Common Stock Usd1.

  

Common Stock

     —           5,961   
  

Workday Inc

  

Common Stock

     —           31,206   
           

 

 

 
  

Common Stock

        —           12,079,714   
           

 

 

 

**

  

U.S Government and Government Agency Issues:

        
  

Fannie Mae

  

6.625% 15 Nov 2030

     —           2,023   
  

Fed HM LN PC Pool C48827

  

6.0% 01 Mar 2031

     —           40,501   
  

Fed HM LN PC Pool G12334

  

5.0% 01 Sep 2021

     —           34,888   
  

FNMA Pool 256398

  

6.0% 01 Sep 2021

     —           6,453   
  

FNMA Pool 581043

  

6.0% 01 May 2016

     —           679   
  

FNMA Pool 615005

  

6.0% 01 Dec 2016

     —           53   
  

FNMA Pool 725690

  

6.0% 01 Aug 2034

     —           851   
  

FNMA Pool 748115

  

6.0% 01 Oct 2033

     —           156   
  

FNMA Pool 815316

  

5.5% 01 May 2035

     —           4   
  

FNMA Pool 885504

  

6.0% 01 Aug 2021

     —           29   
  

FNMA Pool 902793

  

6.5% 01 Nov 2036

     —           3,363   
  

FNMA Pool AH3979

  

4.0% 01 Feb 2041

     —           4,747   
  

FNMA Pool AH4008

  

4.0% 01 Mar 2041

     —           9,336   
  

FNMA Pool AP6604

  

3.0% 01 Sep 2042

     —           11,239   
  

FNMA Pool AT2032

  

3.5% 01 Apr 2043

     —           1,126   
  

FNMA Pool MA0734

  

4.5% 01 May 2031

     —           332   
  

FNMA Pool MA1437

  

3.5% 01 May 2043

     —           1,884   
  

Fnma Tba 30 Yr 3 Single Family Mortgage

  

3% 11 Feb 2046

     —           561   
  

FNMA Tba 30Yr Single Family Ja

  

3.5% 01 Dec 2099

     —           911   
  

FNMA Tba Single Family Mortgag

  

4.0% 01 Dec 2099

     —           2,987   
  

GNMA II Pool 710082

  

4.698% 20 Jul 2061

     —           3,458   
  

GNMA II Pool 710089

  

4.7% 20 Oct 2061

     —           730   
  

GNMA II Pool 751415

  

4.616% 20 Aug 2061

     —           1,292   
  

GNMA II Pool 756731

  

4.673% 20 Mar 2062

     —           907   
  

GNMA II Pool 766519

  

4.668% 20 May 2062

     —           891   
  

GNMA II Pool 766522

  

4.538% 20 Nov 2062

     —           1,912   
  

GNMA II Pool 766544

  

4.499% 20 Dec 2062

     —           1,191   
  

GNMA II Pool 766549

  

4.616% 20 Jul 2062

     —           1,883   
  

Gnma Ii Pool 767659 G2 09/63 Fixed 4.66

  

4.66% 20 Sep 2063

     —           1,549   
  

GNMA II Pool 771800

  

4.627% 20 Jan 2064

     —           3,352   

 

19


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
   Gnma Ii Pool 798510 G2 01/64 Fixed 4.661    4.661% 20 Jan 2064      —           4,189   
   Gnma Ii Pool Aa1698 G2 02/63 Fixed 4.394    4.394% 20 Feb 2063      —           651   
   Gnma Ii Pool Aa7548 G2 04/64 Fixed 4.629    4.629% 20 Apr 2064      —           518   
   GNMA II Pool AB8466    1.0% 20 Sep 2063      —           561   
   GNMA II Pool AC0988    4.423% 20 July 2063      —           1,072   
   GNMA II Pool AC9906    4.323% 20 May 2063      —           3,153   
   GNMA II Pool AC9910    4.515% 20 Jul 2063      —           518   
   Gnma Ii Pool Ah1430 G2 04/65 Fixed 4.575    4.575% 20 Apr 2065      —           295   
   Gnma Ii Pool An4723 G2 05/65 Fixed 4.49    4.49% 20 May 2065      —           800   
   Mex Bonos Desarr    6.5% 10 Jun 2021      —           556   
   Republic Of Colombia Sr Unsecured 01/26 4.5    4.5% 28 Jan 2026      —           2,780   
   Republic Of Indonesia Sr Unsecured 144A 01/42 5.25    5.25% 17 Jan 2042      —           3,067   
   Republic Of Philippines    3.9% 26 Nov 2022      —           1,411   
   Tenn Valley Authority    3.5% 15 Dec 2042      —           2,075   
   Tenn Valley Authority Sr Unsecured 01/48 4.875    4.875% 15 Jan 2048      —           5,269   
   Tenn Valley Authority Sr Unsecured 09/39 5.25    5.25% 15 Sep 2039      —           2,860   
   Tenn Valley Authority Sr Unsecured 09/65 4.25    4.25% 15 Sep 2065      —           14,008   
   Tsy Infl Ix N/B 01/25 0.25    0.25% 15 Jan 2025      —           7,854   
   Tsy Infl Ix N/B 02/44 1.375    1.375% 15 Feb 2044      —           25,886   
   Tsy Infl Ix N/B 02/45 0.75    0.75% 15 Feb 2045      —           1,886   
   Tsy Infl Ix N/B 07/24 0.125    0.125% 15 Jul 2024      —           7,406   
   US Treasury N/B    3.75% 15 Nov 2043      —           2,018   
   US Treasury N/B    0.5% 30 Sep 2016      —           19,905   
   US Treasury N/B    0.375% 31 Oct 2016      —           58,634   
   US Treasury N/B    1.875% 31 Aug 2017      —           12,442   
   US Treasury N/B    1.0% 30 Jun 2019      —           6,511   
   Us Treasury N/B 02/44 3.625    3.625% 15 Feb 2044      —           5,756   
   Us Treasury N/B 02/45 2.5    2.5% 15 Feb 2045      —           1,106   
   Us Treasury N/B 03/16 0.375    0.375% 31 Mar 2016      —           8,904   
   Us Treasury N/B 03/16 0.375    0.375% 31 Mar 2016      —           20,304   
   Us Treasury N/B 05/25 2.125    2.125% 15 May 2025      —           13,427   
   Us Treasury N/B 05/45 3    3.0% 15 May 2045      —           6,049   
   Us Treasury N/B 08/17 0.625    0.625% 31 Aug 2017      —           15,243   
   Us Treasury N/B 08/45 2.875    2.875% 15 Aug 2045      —           16,640   
   Us Treasury N/B 10/17 0.75    0.75% 31 Oct 2017      —           2,075   
   Us Treasury N/B 10/20 1.375    1.375% 31 Oct 2020      —           19,066   
           

 

 

 
  

U.S Government and Government Agency Issues

        —           434,183   
           

 

 

 

 

**

 

  

 

Corporate and Other Obligations:

 

        
   Actavis Funding Scs Company Guar 03/35 4.55    4.55% 15 Mar 2035      —           1,678   
   Actavis Funding Scs Company Guar 03/45 4.75    4.75% 15 Mar 2045      —           2,196   
   AES Corp    1.0% 01 Jun 2019      —           827   
   American Tower Corp    4.5% 15 Jan 2018      —           2,584   
   Americredit Automobile Receiva Amcar 2015 4 B    2.11% 08 Jan 2021      —           1,418   
   Americredit Automobile Receiva Amcar 2015 4 C    2.88% 08 Jul 2021      —           970   
   Americredit Automobile Receivables    1.19% 08 May 2018      —           1,500   
   Americredit Automobile Receivables    1.79% 08 Mar 2019      —           1,202   
   Anadarko Petroleum Corp    6.375% 15 Sep 2017      —           3,385   

 

20


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
  

Anglo American Capital Company Guar 144A 05/25 4.875

   4.875% 14 May 2025      —           3,709   
  

Arcelormittal

   7.25% 01 Mar 2041      —           2,335   
  

Asbury Automotive Group Company Guar 12/24 6

   6.0% 15 Dec 2024      —           1,550   
  

At+T Inc Sr Unsecured 05/46 4.75

   4.75% 15 May 2046      —           2,337   
  

At+T Inc Sr Unsecured 08/41 5.55

   5.55% 15 Aug 2041      —           226   
  

Banc Of America Commercial Mortgage

   1.0% 10 Apr 2049      —           2,279   
  

Banco Santander Bras Ci

   4.625% 13 Feb 2017      —           3,028   
  

Banco Santander Chile

   3.875% 20 Sep 2022      —           2,989   
  

Bank of America

   6.4% 28 Aug 2017      —           2,895   
  

Bank of America

   5.625% 01 Jul 2020      —           4,336   
  

Bank of America

   5.0% 13 May 2021      —           2,215   
  

Barclays Plc Sr Unsecured 06/20 2.875

   2.875% 08 Jun 2020      —           6,892   
  

Bear Stearns Commercial Mortgage

   1.0% 11 Jun 2040      —           2,123   
  

Biogen Inc Sr Unsecured 09/20 2.9

   2.9% 15 Sep 2020      —           1,348   
  

Braskem America Finance

   7.125% 22 Jul 2041      —           3,691   
  

Bunge Limited Finance Co

   4.1% 15 Mar 2016      —           1,132   
  

California Republic Auto Recei Crart 2015 4 A3 144A

   2.04% 15 Jan 2020      —           824   
  

CBRE Services Inc

   5.0% 15 Mar 2023      —           528   
  

CCO Hldgs LLC

   5.25% 15 Mar 2021      —           3,665   
  

CCO Hldgs LLC/Cap Corp

   6.5% 30 Apr 2021      —           859   
  

Cco Safari Ii Llc Sr Secured 144A 10/45 6.484

   6.484% 23 Oct 2045      —           2,557   
  

CD Commercial Mortgage Trust

   5.322% 28 Jun 2016      —           1,909   
  

Celgene Corp Sr Unsecured 08/45 5

   5.0% 15 Aug 2045      —           2,186   
  

Celulosa Arauco

   5.0% 21 Jan 2021      —           2,739   
  

Centurylink Inc

   5.625% 01 Apr 2020      —           1,039   
  

Centurylink Inc Sr Unsecured 03/22 5.8

   5.8% 15 Mar 2022      —           206   
  

Cielo Sa/Cielo Usa Inc

   3.75% 16 Nov 2022      —           2,478   
  

Citigroup Inc

   4.05% 30 Jul 2022      —           2,534   
  

Citigroup Inc Sr Unsecured 10/20 2.65

   2.65% 26 Oct 2020      —           2,011   
  

Citigroup Inc Sr Unsecured 12/18 2.05

   2.05% 07 Dec 2018      —           1,942   
  

CNPC General Capital

   3.95% 19 Apr 2022      —           3,067   
  

Colony American Finance Ltd Cafl 2015 1 A 144A

   2.896% 15 Oct 2047      —           2,802   
  

Colony American Homes

   1.0% 17 May 2031      —           3,455   
  

Comm Mortgage Trust

   1.0% 10 Dec 2049      —           778   
  

Contl Airlines

   4.0% 29 Apr 2026      —           2,347   
  

Contl Airlines

   5.983% 19 Oct 2023      —           3,931   
  

Cps Auto Trust Cps 2015 C C 144A

   3.42% 16 Aug 2021      —           2,238   
  

Cvs Health Corp Sr Unsecured 07/25 3.875

   3.875% 20 Jul 2025      —           2,299   
  

Cvs Health Corp Sr Unsecured 07/45 5.125

   5.125% 20 Jul 2045      —           1,503   
  

Cvs Health Corp Sr Unsecured 144A 12/22 4.75

   4.75% 01 Dec 2022      —           724   
  

Cvs Health Corp Sr Unsecured 144A 12/24 5

   5.0% 01 Dec 2024      —           406   
  

Db Master Finance Llc Dnkn 2015 1A A2I 144A

   3.262% 20 Feb 2045      —           737   
  

Delphi Automotive Plc Company Guar 11/20 3.15

   3.15% 19 Nov 2020      —           600   
  

Deluxe Corp

   6.0% 15 Nov 2020      —           2,967   
  

Dolphin Energy Ltd

   5.5% 15 Dec 2021      —           3,302   
  

Dun & Bradstreet Corp

   3.25% 01 Dec 2017      —           1,664   
  

Dynegy Inc Company Guar 11/19 6.75

   6.75% 01 Nov 2019      —           2,258   
  

Ecopetrol Sa Sr Unsecured 06/26 5.375

   5.375% 26 Jun 2026      —           2,688   
  

Embarq Corp

   7.995% 01 Jun 2036      —           6,650   
  

Embraer Netherlands Fina Company Guar 06/25 5.05

   5.05% 15 Jun 2025      —           3,689   

 

21


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
   Energy Transfer Partners    6.05% 01 Jun 2041      —           5,038   
   Energy Transfer Partners    5.2% 01 Feb 2022      —           1,192   
   Ensco Plc    4.5% 01 Oct 2024      —           620   
   Ensco Plc    5.75% 01 Oct 2044      —           792   
   Equifax Inc    7.0% 01 Jul 2037      —           2,536   
   Firstenergy Corp    2.75% 15 Mar 2018      —           2,187   
   Flextronics Intl Ltd Company Guar 144A 06/25 4.75    4.75% 15 Jun 2025      —           950   
   Ford Motor    7.45% 16 Jul 2031      —           1,668   
   Ford Motor Credit Co LLC    5.75% 01 Feb 2021      —           4,976   
   Ford Motor Credit Co LLC    5.0% 15 May 2018      —           6,151   
   Freeport McMoran    2.375% 15 Mar 2018      —           1,288   
   Frontier Communications    7.875% 15 Jan 2027      —           1,354   
   Frontier Communications    8.5% 15 Apr 2020      —           3,010   
   Gamestop Corp    5.5% 01 Oct 2019      —           2,071   
   GCCFC Commercial Mortgage    5.736% 10 Dec 2049      —           1,496   
   General Elec Cap Corp    2.95% 09 May 2016      —           2,872   
   General Motors Co    5.0% 01 Jan 2035      —           5,254   
   General Motors Co Sr Unsecured 04/45 5.2    5.2% 01 Jan 2045      —           4,505   
   Goldman Sachs Group    5.25% 27 Jul 2021      —           2,988   
   Goldman Sachs Group    6.15% 01 Apr 2018      —           4,076   
   GP Portfolio Trust    1.0% 15 Feb 2027      —           2,684   
   Grupo Televisa Sab    7.25% 14 May 2043      —           1,449   
   GS Mortgage Securities Trust    1.0% 10 Aug 2045      —           6,358   
   Gs Mortgage Securities Trust Gsms 2011 Gc5 C 144A    1.0% 10 Aug 2044      —           968   
   Halyard Health Inc Company Guar 10/22 6.25    6.25% 15 Oct 2022      —           1,867   
   HCA Inc    7.5% 15 Feb 2022      —           5,072   
   Hp Enterprise Co Sr Unsecured 144A 10/20 3.6    3.6% 15 Oct 2020      —           4,214   
   Hp Enterprise Co Sr Unsecured 144A 10/35 6.2    6.2% 15 Oct 2035      —           2,243   
   Hyundai Capital America Sr Unsecured 144A 10/20 3    3.0% 30 Oct 2020      —           4,109   
   Ihs Inc Company Guar 11/22 5    5.0% 01 Nov 2022      —           1,064   
   Intl Lease Finance Corp    6.25% 15 May 2019      —           7,720   
   Jp Morgan Chase Commercial Mor Jpmcc 2006 Ldp9 A3    5.336% 15 May 2047      —           1,602   
   Jp Morgan Chase Commercial Mor Jpmcc 2014 Fl5 B 144A    1.0% 15 Jul 2031      —           1,869   
   Jp Morgan Chase Commercial Mor Jpmcc 2014 Fl5 C 144A    1.0% 15 Jul 2031      —           1,488   
   JPMorgan Chase & Co    4.25% 15 Oct 2020      —           717   
   JPMorgan Chase & Co    4.625% 10 May 2021      —           1,135   
   JPMorgan Chase & Co    4.5% 24 Jan 2022      —           3,968   
   Kb Home Company Guar 05/19 4.75    4.75% 15 May 2019      —           2,330   
   Kindred Healthcare Inc Company Guar 01/20 8    8.0% 15 Jan 2020      —           1,544   
   Kla Tencor Corp Sr Unsecured 11/19 3.375    3.375% 01 Nov 2019      —           1,062   
   Kraft Heinz Foods Co Company Guar 144A 07/25 3.95    3.95% 15 Jul 2025      —           2,879   
   Level 3 Financing Inc Company Guar 02/23 5.625    5.625% 01 Feb 2023      —           1,531   
   Mednax Inc Company Guar 144A 12/23 5.25    5.25% 01 Dec 2023      —           453   
   Methanex Corp    3.25% 15 Dec 2019      —           2,794   
   Mexichem Sab DE CV    6.75% 19 Sep 2042      —           3,063   
   Mill City Mortgage Trust Mcmlt 2015 2 A1 144A    1.0% 25 Sep 2057      —           2,185   
   Ml Cfc Commercial Mortgage Tru Mlcfc 2007 8 A3    1.0% 12 Aug 2049      —           4,968   
   ML CFC Commercial Mortgage Trust    1.0% 12 Mar 2051      —           3,772   
   Molex Electronics Tech Sr Unsecured 144A 04/20 2.878    2.878% 15 Apr 2020      —           1,902   
   Molex Electronics Tech Sr Unsecured 144A 04/25 3.9    3.9% 15 Apr 2025      —           1,054   
   Morgan Stanley    5.55% 27 Apr 2017      —           3,938   

 

22


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
   Morgan Stanley    5.5% 26 Jan 2020      —           2,727   
   Morgan Stanley Capital I Trust    1.0% 12 Apr 2049      —           659   
   Morgan Stanley Capital I Trust    5.569% 15 Dec 2044      —           8,714   
   Morgan Stanley Sr Unsecured 10/24 3.7    3.7% 23 Oct 2024      —           4,375   
   Mtn Mauritius Invstments Company Guar 144A 11/24 4.755    4.755% 11 Nov 2024      —           2,613   
   Myriad Int Holding BV    6.0% 18 Jul 2020      —           3,994   
   Nabors Industries Inc    5.1% 15 Sep 2023      —           2,976   
   National Rural Util Coop    1.0% 30 Apr 2043      —           2,222   
   Navient Corp Sr Unsecured 03/24 6.125    6.125% 25 Mar 2024      —           2,203   
   Newfield Exploration Co    5.75% 30 Jan 2022      —           2,259   
   Newfield Exploration Co Sr Unsecured 01/26 5.375    5.375% 01 Jan 2026      —           621   
   Onemain Financial Issuance Tru Omfit 2015 1A A 144A    3.19% 18 Mar 2026      —           2,835   
   Owens Corning Company Guar 12/24 4.2    4.2% 01 Dec 2024      —           1,461   
   Perkinelmer Inc    5.0% 15 Nov 2021      —           1,744   
   Pertamina Persero    5.625% 20 May 2043      —           5,640   
   Petrobras Global Finance    5.625% 20 May 2043      —           1,687   
   Petrobras Global Finance Company Guar 06/49 6.85    6.85% 05 Jun 2049      —           3,111   
   Petrobras Intl Fin Co    6.75% 27 Jan 2041      —           2,739   
   Petroleos Mexicanos    3.5% 18 Jul 2018      —           1,415   
   Petroleos Mexicanos Company Guar 01/21 5.5    5.5% 21 Jan 2021      —           1,060   
   Petroleos Mexicanos Company Guar 144A 07/20 3.5    3.5% 23 Jul 2020      —           497   
   Phillips 66    4.3% 01 Apr 2022      —           2,471   
   Plains Exploration & Pro    6.875% 15 Feb 2023      —           1,939   
   Polyone Corp    5.25% 15 Mar 2023      —           2,050   
   Quicken Loans Inc Company Guar 144A 05/25 5.75    5.75% 01 May 2025      —           1,073   
   Regal Entertainment Grp Sr Unsecured 03/22 5.75    5.75% 15 Mar 2022      —           1,877   
   Reynolds American Inc    7.25% 15 Jun 2037      —           6,250   
   Rio Oil Finance Trust Sr Secured 144A 07/24 6.25    6.25% 06 Jul 2024      —           4,889   
   Rock Tenn Co    4.0% 01 Mar 2023      —           1,657   
   Rowan Companies Inc    5.0% 01 Sep 2017      —           2,906   
   RPM International Inc    6.125% 15 Oct 2019      —           2,184   
   Santander Drive Auto    2.7% 15 Aug 2018      —           1,302   
   Santander Drive Auto    1.94% 15 Mar 2018      —           1,177   
   Sealed Air Corp    6.5% 01 Dec 2020      —           1,490   
   Sequoia Mortgage Trust    1.0% 25 May 2043      —           3,286   
   Sidewinder Drilling Inc    9.75% 15 Nov 2019      —           694   
   SLM Corp    4.875% 17 Jun 2019      —           4,766   
   SM Energy Co    6.5% 01 Jan 2023      —           1,821   
   Southern Copper Corp Sr Unsecured 04/45 5.875    5.875% 23 Apr 2045      —           3,853   
   Springleaf Funding Trust    3.92% 16 Jan 2023      —           5,333   
   Sprint Capital Corp    6.875% 15 Nov 2028      —           1,780   
   Telefonica Emisiones Sau    5.134% 27 Apr 2020      —           2,459   
   Telefonica Emisiones Sau    5.462% 16 Feb 2021      —           168   
   Tesoro Logistics Lp/Corp Company Guar 144A 10/19 5.5    5.5% 15 Oct 2019      —           510   
   Tesoro Logistics Lp/Corp Company Guar 144A 10/22 6.25    6.25% 15 Oct 2022      —           925   
   Textainer Marine Containers Li Tmcl 2014 1A A 144A    3.27% 20 Oct 2039      —           3,549   
   Textron Inc Sr Unsecured 03/25 3.875    3.875% 01 Mar 2025      —           883   
   Thai Oil Pcl    4.875% 23 Jan 2043      —           5,622   
   Time Warner Cable Inc    5.875% 15 Nov 2040      —           498   
   Time Warner Cable Inc    5.5% 01 Sep 2041      —           2,171   

 

23


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  

Time Warner Cable Inc

   4.5% 15 Sep 2042      —           1,650   
  

Towd Point Mortgage Trust Tpmt 2015 2 1A12 144A

   2.75% 25 Nov 2060      —           1,417   
  

Transelec SA

   4.625% 26 Jul 2023      —           3,134   
  

Transocean Inc

   6.5% 15 Nov 2020      —           1,658   
  

Universal Health Svcs Sr Secured 144A 08/19 3.75

   3.75% 01 Aug 2019      —           764   
  

Universal Health Svcs Sr Secured 144A 08/22 4.75

   4.75% 01 Aug 2022      —           834   
  

USG Corp

   9.75% 15 Jan 2018      —           2,673   
  

Valeant Pharmaceuticals

   6.375% 15 Oct 2020      —           1,956   
  

Verizon Communications Sr Unsecured 03/34 5.05

   5.05% 15 Mar 2034      —           1,272   
  

Verizon Communications Sr Unsecured 11/34 4.4

   4.4% 01 Nov 2034      —           5,680   
  

Viacom Inc Sr Unsecured 04/44 5.25

   5.25% 01 Apr 2044      —           619   
  

Votorantim Cimentos SA

   7.25% 05 Apr 2041      —           2,282   
  

Wf Rbs Commercial Mortgage Tru Wfrbs 2011 C4 D 144A

   1.0% 15 Jun 2044      —           771   
  

Whirlpool Corp

   4.7% 01 Jun 2022      —           3,674   
  

Windstream Corp

   7.5% 01 Apr 2023      —           2,033   
  

Wolverine World Wide

   6.125% 15 Oct 2020      —           859   
  

World Financial Network

   3.14% 17 Jan 2023      —           10,049   
  

World Financial Network

   1.76% 17 May 2021      —           6,762   
           

 

 

 
  

Corporate and Other Obligations

        —           442,675   
           

 

 

 

Synthetic Guaranteed Investment Contracts:

     
  

Cash & Cash Equivalents

        

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           767,591   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           107,065   

*

  

State Street Bank & Trust Co

   Short-Term Investment Fund      —           91,666   
           

 

 

 
  

Cash & Cash Equivalents

        —           966,322   
           

 

 

 
  

U.S. Government and Government Agency Issues

        
  

California St Cas

   5.75% 01 Mar 2017      —           14,850   
  

Fed HM LN PC Pool 1L1358

   1.0% 01 May 2036      —           21,930   
  

Fed HM LN PC Pool G01843

   6.0% 01 Jun 2035      —           11,231   
  

Fed HM LN PC Pool G03205

   5.5% 01 Jul 2035      —           2,101   
  

Fed Hm Ln Pc Pool G07956 Fg 01/45 Fixed 4

   4.0% 01 Jan 2045      —           60,001   
  

Fed Hm Ln Pc Pool G08677 Fg 11/45 Fixed 4

   4.0% 01 Nov 2045      —           57,255   
  

Fed HM LN PC Pool G12743

   5.5% 01 Aug 2022      —           2,278   
  

Fed HM LN PC Pool J16933

   3.0% 01 Oct 2026      —           868   
  

Fed HM LN PC Pool Q03572

   4.0% 01 Sep 2041      —           62,254   
  

Fed HM LN PC Pool Q11095

   3.5% 01 Sep 2042      —           74,981   
  

Fed HM LN PC Pool U92432

   4.0% 01 Feb 2044      —           11,799   
  

FNMA Tba Jan 30 Single Fam

   4.5% 01 Feb 2099      —           61,093   
  

FNMA Pool 254693

   5.5% 01 Apr 2033      —           3,910   
  

FNMA Pool 725222

   5.5% 01 Feb 2034      —           4,994   
  

FNMA Pool 725423

   5.5% 01 May 2034      —           3,804   
  

FNMA Pool 725424

   5.5% 01 Apr 2034      —           1,677   

 

24


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   FNMA Pool 725690    6.0% 01 Aug 2034      —           1,549   
   FNMA Pool 725946    5.5% 01 Nov 2034      —           4,382   
   FNMA Pool 743132    5.0% 01 Oct 2018      —           5,769   
   FNMA Pool 914789    5.0% 01 Apr 2037      —           30,989   
   FNMA Pool 931745    5.0% 01 Aug 2024      —           36,157   
   FNMA Pool 986148    5.5% 01 Jan 2038      —           29,369   
   FNMA Pool AB5519    3.5% 01 Jul 2042      —           59,622   
   FNMA Pool AB5688    3.5% 01 Jul 2037      —           19,043   
   FNMA Pool AB6282    3.5% 01 Sep 2042      —           89,115   
   FNMA Pool AB7016    4.0% 01 Nov 2042      —           56,545   
   FNMA Pool AB9096    4.0% 01 Apr 2043      —           32,670   
   Fnma Pool Aj7678 Fn 12/41 Fixed 3.5    3.5% 01 Dec 2041      —           19,312   
   FNMA Pool AL0139    1.0% 01 Feb 2039      —           13,983   
   FNMA Pool AO4163    3.5% 01 Jun 2042      —           54,349   
   FNMA Pool AO5515    3.5% 01 Jul 2042      —           10,599   
   FNMA Pool AO8169    3.5% 01 Sep 2042      —           36,964   
   FNMA Pool AQ6238    3.5% 01 Dec 2042      —           15,007   
   FNMA Pool AR4445    3.0% 01 Mar 2043      —           14,001   
   FNMA Pool AR9225    3.0% 01 Mar 2043      —           54,923   
   Fnma Pool As3642 Fn 10/44 Fixed 4    4.0% 01 Oct 2044      —           53,529   
   Fnma Pool As4067 Fn 12/44 Fixed 4    4.0% 01 Dec 2044      —           11,951   
   Fnma Pool As4558 Fn 03/45 Fixed 3.5    3.5% 01 Mar 2045      —           30,112   
   Fnma Pool As4705 Fn 04/45 Fixed 3.5    3.5% 01 Apr 2045      —           15,158   
   FNMA Pool AU1628    3.0% 01 Jul 2043      —           56,975   
   FNMA Pool MA1217    4.0% 01 Oct 2042      —           33,132   
   FNMA Pool MA1404    3.5% 01 Apr 2042      —           32,831   
   Fnma Pool Ma2512 Fn 01/46 Fixed 4    4.0% 01 Jan 2046      —           18,254   
   FNMA Tba 30Yr Single Family Ja    3.5% 01 Dec 2099      —           123,855   
   FNMA Tba Single Family Mortgag    4.0% 01 Dec 2099      —           158,456   
   Futures Cash Collateral Usd Held At Broker    US Dollars      —           5,687   
   Gnma Ii Pool Ma2963 G2 07/45 Fixed 4.5    4.5% 20 Jul 2045      —           49,512   
   GNMA II TBA 30 Yr    3.5% 21 Jan 2045      —           93,903   
   Korea Finance Corp    2.25% 07 Aug 2017      —           31,079   
   New Jersey St Econ Dev Auth    1.802% 15 Jun 2017      —           32,146   
   New Jersey St Econ Dev Auth Re Njsdev 06/20 Fixed 4.447    4.447% 15 Jun 2020      —           24,527   
   North Carolina State Education    1.0% 25 Jul 2025      —           45,101   
   Province of Ontario    4.0% 07 Oct 2019      —           70,512   
   Republic Of Poland    6.375% 15 Jul 2019      —           1,571   
   Republica Orient Uruguay Sr Unsecured 08/24 4.5    4.5% 14 Aug 2024      —           5,407   
   Republica Orient Uruguay Sr Unsecured 10/27 4.375    4.375% 27 Oct 2027      —           9,286   
   State Of Qatar    4.5% 20 Jan 2022      —           10,538   
   Treasury Bill 03/16 0.00000    0.01% 24 Mar 2016      —           283,505   
   Tsy Infl Ix N/B    0.125% 15 Apr 2019      —           126,954   
   Tsy Infl Ix N/B 01/18 1.625    1.625% 15 Jan 2018      —           265,596   
   United Mexican States Sr Unsecured 03/19 5.95    5.95% 19 Mar 2019      —           3,739   
   United States of America Treasury    1.0% 31 Oct 2016      —           126,944   
   US Treasury N/B    0.625% 15 Feb 2017      —           71,481   
  

US Treasury N/B

  

0.875% 15 Aug 2017

     —           275,895   
  

US Treasury N/B

  

3.625% 15 Feb 2020

     —           63,393   
  

US Treasury N/B

  

0.625% 30 Sep 2017

     —           177,832   

 

25


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   US Treasury N/B    0.5% 31 Aug 2016      —           301,912   
   US Treasury N/B    0.5% 30 Sep 2016      —           354,675   
   US Treasury N/B    0.375% 31 Oct 2016      —           161,382   
   US Treasury N/B    0.5% 30 Nov 2016      —           253,331   
   US Treasury N/B    1.5% 31 Dec 2018      —           480,047   
   US Treasury N/B    0.75% 15 Jan 2017      —           251,538   
   US Treasury N/B    0.875% 15 Aug 2017      —           355,286   
   US Treasury N/B    2.375% 15 Aug 2024      —           17,191   
   Us Treasury N/B 01/17 0.5    0.5% 31 Jan 2017      —           369,846   
   Us Treasury N/B 01/18 2.625    2.625% 31 Jan 2018      —           474,814   
   Us Treasury N/B 01/20 1.25    1.25% 31 Jan 2020      —           8,122   
   Us Treasury N/B 02/18 1    1.0% 15 Feb 2018      —           29,980   
   Us Treasury N/B 03/18 0.75    0.75% 31 Mar 2018      —           83,114   
   Us Treasury N/B 04/20 1.375    1.375% 30 Apr 2020      —           145,374   
   Us Treasury N/B 05/25 2.125    2.125% 15 May 2025      —           9,498   
   Us Treasury N/B 06/20 1.625    1.625% 30 Jun 2020      —           27,555   
   Us Treasury N/B 07/17 0.5    0.5% 31 Jul 2017      —           121,091   
   Us Treasury N/B 07/17 0.625    0.625% 31 Jul 2017      —           110,568   
   Us Treasury N/B 07/18 1.375    1.375% 31 Jul 2018      —           279,467   
   Us Treasury N/B 07/19 1.625    1.625% 31 Jul 2019      —           193,834   
   Us Treasury N/B 07/20 1.625    1.625% 31 Jul 2020      —           165,732   
   Us Treasury N/B 08/20 1.375    1.375% 31 Aug 2020      —           22,531   
   Us Treasury N/B 08/20 2.125    2.125% 31 Aug 2020      —           384,176   
   Us Treasury N/B 08/22 1.875    1.875% 31 Aug 2022      —           27,349   
   Us Treasury N/B 08/25 2    2.0% 15 Aug 2025      —           110,424   
   Us Treasury N/B 10/17 1.875    1.875% 31 Oct 2017      —           457,825   
   Us Treasury N/B 10/18 1.75    1.75% 31 Oct 2018      —           84,942   
   Us Treasury N/B 10/20 1.375    1.375% 31 Oct 2020      —           55,541   
   Us Treasury N/B 10/20 1.375    1.375% 31 Oct 2020      —           34,338   
   Us Treasury N/B 10/22 1.875    1.875% 31 Oct 2022      —           19,174   
   Us Treasury N/B 11/20 2    2.0% 30 Nov 2020      —           123,597   
   Us Treasury N/B 11/22 2    2.0% 30 Nov 2022         55,034   
   Us Treasury N/B 11/25 2.25    2.25% 15 Nov 2025      —           67,388   
   Us Treasury N/B 12/16 0.625    0.625% 31 Dec 2016      —           127,067   
           

 

 

 
  

U.S. Government and Government Agency Issues

        —           9,051,978   
           

 

 

 
   Corporate and Other Obligations         
   21St Century Fox America Company    4.5% 15 Feb 2021      —           14,239   
   Abbvie Inc Sr Unsecured 05/20 2.5    2.5% 14 May 2020      —           2,722   
   Abn Amro Bank Nv    2.5% 30 Oct 2018      —           16,949   
   Abn Amro Bank Nv    4.25% 02 Feb 2017      —           14,118   
   Abn Amro Bank Nv    2.5% 30 Oct 2018      —           19,024   
   Ace Ina Holdings    2.7% 13 Mar 2023      —           168   
   Actavis Funding Scs    3.85% 15 Jun 2024      —           4,373   
   Actavis Funding Scs Company Guar 03/20 3    3.0% 12 Mar 2020      —           24,796   
   Agilent Technologies Inc    6.5% 01 Nov 2017      —           3,082   
  

Airgas Inc Sr Unsecured 08/20 3.05

  

3.05% 01 Aug 2020

     —           6,398   
  

Albemarle Corp

  

3.0% 01 Dec 2019

     —           9,271   

 

26


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
  

Alcoa Inc

  

6.75% 15 Jul 2018

     —           15,684   
  

Alibaba Group Holding Sr Unsecured 11/19 2.5

  

2.5% 28 Nov 2019

     —           32,403   
  

Allegheny Technologies

  

5.95% 15 Jan 2021

     —           8,720   
  

Allied World Assurance

  

7.5% 01 Aug 2016

     —           5,859   
  

Allied World Assurance Company Guar 10/25 4.35

  

4.35% 29 Oct 2025

     —           16,071   
  

Ally Auto Receivables Trust Allya 2015 2 A3

  

1.49% 15 Nov 2019

     —           13,830   
  

Ally Master Owner Trust

  

1.29% 15 Jan 2019

     —           22,006   
  

Ally Master Owner Trust

  

1.54% 15 Sep 2019

     —           42,877   
  

Ally Master Owner Trust Amot 2015 3 A

  

1.63% 15 May 2020

     —           21,788   
  

Altria Group Inc

  

2.85% 09 Aug 2022

     —           30,827   
  

Altria Group Inc

  

2.625% 14 Jan 2020

     —           16,184   
  

American Express Credit

  

1.26% 15 Jan 2020

     —           7,135   
  

American Express Credit Sr Unsecured 09/20 2.6

  

2.6% 14 Sep 2020

     —           27,717   
  

American Intl Group

  

4.875% 01 Jun 2022

     —           11,135   
  

American Intl Group

  

6.4% 15 Dec 2020

     —           33,703   
  

American Tower Corp

  

5.05% 01 Sep 2020

     —           14,286   
  

American Tower Corp Sr Unsecured 02/19 3.4

  

3.4% 15 Feb 2019

     —           16,747   
  

American Tower Corp Sr Unsecured 03/22 4.7

  

4.7% 15 Mar 2022

     —           13,727   
  

American Tower Corp Sr Unsecured 06/20 2.8

  

2.8% 01 Jun 2020

     —           7,441   
  

Americredit Automobile Receiva Amcar 2015 2 A3

  

1.27% 08 Jan 2020

     —           31,639   
  

Americredit Automobile Receivables

  

1.27% 08 Jul 2019

     —           17,640   
  

Americredit Automobile Receivables

  

0.92% 09 Apr 2018

     —           7,562   
  

Americredit Automobile Receivables

  

0.96% 09 Apr 2018

     —           3,767   
  

Ameriprise Financial Inc

  

3.7% 15 Oct 2024

     —           4,906   
  

Amgen Inc

  

2.2% 22 Feb 2019

     —           2,403   
  

Anadarko Petroleum Corp

  

6.375% 15 Sep 2017

     —           14,236   
  

Anheuser Busch

  

5.0% 01 Mar 2019

     —           1,110   
  

Anheuser Busch Inbev Wor Company Guar 07/22 2.5

  

2.5% 15 Jul 2022

     —           14,054   
  

Anthem Inc

  

2.3% 15 Jul 2018

     —           21,441   
  

Apple Inc

  

2.85% 06 May 2021

     —           13,376   
  

Apple Inc Sr Unsecured 05/22 2.7

  

2.7% 13 May 2022

     —           7,754   
  

Astrazeneca Plc Sr Unsecured 11/20 2.375

  

2.375% 16 Nov 2020

     —           27,471   
  

AT&T Inc

  

5.8% 15 Feb 2019

     —           15,547   
  

AT&T Inc

  

1.0% 27 Nov 2018

     —           26,144   
  

At+T Inc Sr Unsecured 06/22 3

  

3.0% 30 Jun 2022

     —           17,276   
  

Bank of America

  

1.0% 15 Jun 2021

     —           17,842   
  

Bank of America

  

6.4% 28 Aug 2017

     —           32,031   
  

Bank of America

  

6.875% 25 Apr 2018

     —           8,153   
  

Bank of America

  

3.3% 11 Jan 2023

     —           13,127   
  

Bank of America

  

4.0% 01 Apr 2024

     —           9,737   
  

Bank of America

  

4.2% 26 Aug 2024

     —           8,321   
  

Bank of America

  

6.875% 25 Apr 2018

     —           5,688   
  

Bank of America

  

6.0% 01 Sep 2017

     —           13,717   
  

Bank of America

  

5.65% 01 May 2018

     —           4,989   
  

Bank of America

  

5.625% 01 Jul 2020

     —           32,260   
  

Bank of America

  

3.875% 22 Mar 2017

     —           4,215   
  

Bank of America

  

2.6% 15 Jan 2019

     —           7,276   
  

Bank of America

  

5.42% 15 Mar 2017

     —           10,733   
  

Bank of America

  

1.0% 15 Jan 2019

     —           34,152   
  

Bank Of America Corp

  

6.5% 15 Jul 2018

     —           25,452   

 

27


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Bank Of America Credit Card Tr Bacct 2015 A2 A    1.36% 15 Sep 2020      —           31,236   
   Bank Of America Na Sr Unsecured 03/18 1.65    1.65% 26 Mar 2018      —           14,839   
   Bank of Montreal    1.4% 11 Sep 2017      —           9,620   
   Bank Of The West Auto Trust Bwsta 2015 1 A3 144A    1.31% 15 Oct 2019      —           21,862   
   Barclays Bank    5.125% 08 Jan 2020      —           14,168   
   Barclays Dryrock Issuance Trus Drock 2015 1 A    2.2% 15 Dec 2022      —           22,288   
   Barclays Dryrock Issuance Trus Drock 2015 4 A    1.72% 16 Aug 2021      —           11,093   
   Barclays Dryrock Issuance Trust    2.41% 15 Jul 2022      —           36,130   
   Barclays Dryrock Issuance Trust    2.41% 15 Jul 2022      —           12,009   
   Barclays Plc Sr Unsecured 03/25 3.65    3.65% 16 Mar 2025      —           15,029   
   Barrick Gold Corp Sr Unsecured 05/23 4.1    4.1% 01 May 2023      —           708   
   Barrick NA Finance LLC    4.4% 30 May 2021      —           15,740   

*

   Baxalta Inc Sr Unsecured 144A 06/22 3.6    3.6% 23 Jun 2022      —           12,542   

*

   Baxter International Inc    1.85% 15 Jan 2017      —           7,592   
   Bear Stearns Commercial Mortgage    1.0% 12 Jan 2045      —           24,734   
   Bear Stearns Cos LLC    7.25% 01 Feb 2018      —           28,625   
   Becton Dickinson & Co    2.675% 15 Dec 2019      —           10,091   
   Biogen Inc Sr Unsecured 09/22 3.625    3.625% 15 Sep 2022      —           7,159   
   Bmw Floorplan Master Owner Tru Bmwft 2015 1A A 144A    1.0% 15 Jul 2020      —           16,531   
   Boston Properties LP    3.7% 15 Nov 2018      —           9,435   
   BP Capital Markets PLC    1.846% 05 May 2017      —           32,808   
   Bp Capital Markets Plc Company Guar 03/22 3.062    3.062% 17 Mar 2022      —           10,609   
   British Telecom Plc    1.625% 28 Jun 2016      —           16,863   
   Brown & Brown Inc    4.2% 15 Sep 2024      —           5,939   
   Capital One Financial Co    5.25% 21 Feb 2017      —           13,503   
   Capital One Multi Asset Execut Comet 2015 A5 A5    1.6% 17 May 2021      —           19,354   
   Capital One NA    2.4% 05 Sep 2019      —           31,455   
   Capital One NA    1.5% 22 Mar 2018      —           26,702   
   Carmax Auto Owner Trust Carmx 2015 4 A3    1.56% 16 Nov 2020      —           13,852   
   CBS Corp    5.75% 15 Apr 2020      —           9,728   
   Cbs Corp Company Guar 01/25 3.5    3.5% 15 Jan 2025      —           5,079   
   Cco Safari Ii Llc Sr Secured 144A 07/25 4.908    4.908% 23 Jul 2025      —           12,361   
   CD Commercial Mortgage Trust    5.322% 28 Jun 2016      —           43,689   
   Celgene Corp Sr Unsecured 08/25 3.875    3.875% 15 Aug 2025      —           12,152   
   Centerpoint Energy Resources    4.5% 15 Jan 2021      —           3,608   
   Chase Issuance Trust    2.77% 15 Mar 2023      —           16,758   
   Chrysler Capital Auto Receivab Ccart 2015 Ba A3 144A    1.91% 16 Mar 2020      —           13,838   
   CIT Equipment Collateral    1.13% 20 Jul 2020      —           8,666   
   Citibank Credit Card Issuance    2.88% 23 Jan 2023      —           32,114   
   Citigroup Commercial Mortgage    1.0% 10 Dec 2049      —           14,207   
   Citigroup Commercial Mortgage    5.431% 15 Oct 2045      —           7,932   
   Citigroup Commercial Mortgage    1.0% 15 Mar 2049      —           4,844   
   Citigroup Inc Sr Unsecured 10/20 2.65    2.65% 26 Oct 2020      —           18,069   
   Citigroup Inc Subordinated 03/25 3.875    3.875% 26 Mar 2025      —           22,413   
   Citigroup Inc Subordinated 06/25 4.4    4.4% 10 Jun 2025      —           16,142   
   Citigroup Inc Subordinated 09/27 4.45    4.45% 29 Sep 2027      —           13,999   
   Cleveland Electric    5.7% 01 Apr 2017      —           7,405   
   Cnh Equipment Trust Cnh 2015 A A4    1.85% 15 Apr 2021      —           11,336   
   Codelco Inc Sr Unsecured 144A 09/25 4.5    4.5% 16 Sep 2025      —           6,603   
   Comcast Corp    6.5% 15 Jan 2017      —           6,331   

 

28


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Comerica Bank Sr Unsecured 06/20 2.5    2.5% 02 Jun 2020      —           8,889   
   Comm Mortgage Trust    1.0% 11 Jun 2027      —           10,894   
   Comm Mortgage Trust    1.8726% 12 Apr 2035      —           6,784   
   Comm Mortgage Trust    3.689% 10 Aug 2046      —           21,861   
   Comm Mortgage Trust Comm 2006 C8 A1A    5.292% 10 Dec 2046      —           19,915   
   Comm Mortgage Trust Comm 2015 Cr27 Asb    3.404% 10 Oct 2048      —           29,160   
   Conocophillips Company Company Guar 11/21 2.875    2.875% 15 Nov 2021      —           9,679   
   Constellation Energy    5.15% 01 Dec 2020      —           3,247   
   Consumers Energy    6.12% 15 Mar 2019      —           10,597   
   Cooperatieve Rabobank Ua Bank Guarant 08/25 4.375    4.375% 04 Aug 2025      —           14,157   
   Cooperatieve Rabobank Ua Company Guar 11/22 3.95    3.95% 09 Nov 2022      —           19,657   
   Corporate Office Prop Lp Company Guar 07/25 5    5.0% 01 Jul 2025      —           7,600   
   Countrywide Finl Corp    6.25% 15 May 2016      —           2,551   
   Coventry Health Care Inc    5.95% 3/15/2017      —           3,068   
   Cox Communications Inc    6.2% 01 Jun 2018      —           29,917   
   Cox Communications Inc Sr Unsecured 144A 06/23 2.95    2.95% 30 Jun 2023      —           3,845   
   Cred Suis Gp Fun Ltd Company Guar 144A 03/20 2.75    2.75% 26 Mar 2020      —           18,725   
   Cred Suis Gp Fun Ltd Company Guar 144A 09/22 3.8    3.8% 15 Sep 2022      —           27,646   
   Cred Suis Gp Fun Ltd Company Guar 144A 12/20 3.125    3.125% 10 Dec 2020      —           13,857   
   Credit Based Asset Servicing    1.0% 25 Jan 2033      —           3,035   
   Credit Suisse    5.3% 13 Aug 2019      —           34,159   
   Csail Commercial Mortgage Trus Csail 2015 C3 A4    3.718% 15 Aug 2048      —           15,331   
   Csail Commercial Mortgage Trus Csail 2015 C4 Asb    3.616% 15 Nov 2048      —           8,777   
   CVS Caremark Corp    2.25% 05 Dec 2018      —           26,766   
   Cvs Health Corp Sr Unsecured 07/25 3.875    3.875% 20 Jul 2025      —           11,400   
   Daimler Finance Na Llc Company Guar 144A 05/20 2.45    2.45% 18 May 2020      —           15,844   
   DCP Midstream Operating Company    4.95% 01 Apr 2022      —           10,689   
   Dell Equipment Finance Trust Deft 2015 1 A3 144A    1.3% 23 Mar 2020      —           7,708   
   Dell Equipment Finance Trust Deft 2015 2 A2A 144A    1.42% 22 Dec 2017      —           4,350   
   Delmarva Pwr & Light Co    3.5% 15 Nov 2023      —           22,606   
   Delphi Automotive Plc Company Guar 11/20 3.15    3.15% 19 Nov 2020      —           2,574   
   Delta Air Lines    7.75% 17 Jun 2021      —           13,838   
   Deutsche Bank Ag London Sr Unsecured 02/18 1.875    1.875% 13 Feb 2018      —           18,743   
   Devon Energy Corporation Sr Unsecured 12/25 5.85    5.85% 15 Dec 2025      —           8,691   
   Directv Holdings    4.6% 15 Feb 2021      —           9,101   
   Directv Holdings    3.8% 15 Mar 2022      —           2,905   
   DirecTV Holdings LLC    4.45% 01 Apr 2024      —           8,437   
   Discover Bank    7.0% 15 Apr 2020      —           15,654   
   Discover Card    1.04% 15 Apr 2019      —           22,158   
   Discover Card Execution Note T Dcent 2015 A1 A1    1.0% 17 Aug 2020      —           15,023   
   Discover Card Execution Note T Dcent 2015 A2 A    1.9% 17 Oct 2022      —           19,899   
   Discovery Communications Company Guar 03/25 3.45    3.45% 15 Mar 2025      —           5,196   
   Drive Auto Receivables Trust Drive 2015 Aa A2 144A    1.01% 15 Nov 2017      —           4,259   
   Drive Auto Receivables Trust Drive 2015 Da A2A 144A    1.23% 15 Jun 2018      —           8,309   
   Duke Energy Corp Sr Unsecured 04/24 3.75    3.75% 15 Apr 2024      —           12,014   
   Duke Energy Progress Inc    1.0% 06 Mar 2017      —           15,250   
   Ebay Inc Sr Unsecured 07/22 2.6    2.6% 15 Jul 2022      —           21,435   
  

Empresa De Transporte

  

4.75% 04 Feb 2024

     —           7,824   
  

Enel Finance Intl NV

  

6.25% 15 Sep 2017

     —           14,466   
  

Energy Transfer Partners

  

4.65% 01 Jun 2021

     —           10,810   

 

29


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Energy Transfer Partners    6.7% 01 Jul 2018      —           17,782   
   Energy Transfer Partners    4.15% 01 Oct 2020      —           29,329   
   Energy Transfer Partners Sr Unsecured 06/18 2.5    2.5% 15 Jun 2018      —           15,802   
   Entergy Corp Sr Unsecured 07/22 4    4.0% 15 Jul 2022      —           11,115   
   Enterprise Products    5.2% 01 Sep 2020      —           9,192   
   Enterprise Products    3.35% 15 Mar 2023      —           10,723   
   Enterprise Products Oper Company Guar 02/26 3.7    3.7% 15 Feb 2026      —           12,178   
   Exelon Corp Sr Unsecured 06/20 2.85    2.85% 15 Jun 2020      —           20,510   
   Exelon Generation Co    4.25% 15 Jun 2022      —           14,626   
   Exelon Generation Co    4.25% 15 Jun 2022      —           6,477   
   Expedia Inc Company Guar 144A 02/26 5    5.0% 15 Feb 2026      —           17,275   
   Extended Stay America Trust    2.2952% 05 Dec 2031      —           11,826   
   Fanniemae Aces Fna 2015 M17 Fa    1.0% 25 Nov 2022      —           27,818   
   FHLMC Multifamily Structured    2.917% 25 Aug 2020      —           13,679   
   FHLMC Multifamily Structured    1.603% 25 Jan 2022      —           25,145   
   FHLMC Multifamily Structured    2.615% 25 Mar 2023      —           17,781   
   Fifth Third Bancorp    3.5% 15 Mar 2022      —           6,583   
   First National    1.0% 15 Oct 2019      —           12,024   
   First National Master Note Tru Fnmnt 2015 1 A    1.0% 15 Sep 2020      —           16,703   
   Ford Credit Auto Lease Trust    0.89% 15 Sep 2017      —           11,565   
   Ford Credit Auto Owner Trust    2.26% 15 Nov 2025      —           12,127   
   Ford Credit Auto Owner Trust    1.0% 15 Sep 2017      —           4,350   
   Ford Credit Floorplan Master    1.2% 15 Feb 2019      —           16,095   
   Ford Motor Credit    1.0% 13 Mar 2019      —           26,412   
   Ford Motor Credit Co LLC    5.875% 02 Aug 2021      —           28,938   
   Ford Motor Credit Co Llc Sr Unsecured 08/25 4.134    4.134% 04 Aug 2025      —           19,007   
   Ford Motor Credit Co Llc Sr Unsecured 09/22 4.25    4.25% 20 Sep 2022      —           7,032   
   Fortune Brands Home + Se Sr Unsecured 06/20 3    3.0% 15 Jun 2020      —           8,717   
   Freeport McMoran    2.375% 15 Mar 2018      —           6,863   
   Freeport Mcmoran Oil+Gas Company Guar 11/20 6.5    6.5% 15 Nov 2020      —           1,463   
   Fs Investment Corp Sr Unsecured 05/22 4.75    4.75% 15 May 2022      —           15,507   
   GCCFC Commercial Mortgage    5.444% 10 Mar 2039      —           33,508   
   GCCFC Commercial Mortgage    5.444% 10 Mar 2039      —           23,424   
   GDF Suez    1.625% 10 Oct 2017      —           6,085   
   GE Capital    1.76% 15 Sep 2022      —           48,631   
   GE Capital Credit Card Master    2.22% 15 Jan 2022      —           19,265   
   General Elec Cap Corp    1.0% 14 Jan 2019      —           30,208   
   General Elec Cap Corp    4.65% 17 Oct 2021      —           7,421   
   General Motors Finl Co Company Guar 01/19 3.1    3.1% 15 Jan 2019      —           12,870   
   General Motors Finl Co Company Guar 01/25 4    4.0% 15 Jan 2025      —           1,891   
   General Motors Finl Co Company Guar 05/18 3.25    3.25% 15 May 2018      —           1,002   
   General Motors Finl Co Company Guar 05/23 4.25    4.25% 15 May 2023      —           7,479   
   General Motors Finl Co Company Guar 07/25 4.3    4.3% 13 Jul 2025      —           2,333   
   Gilead Sciences Inc Sr Unsecured 03/26 3.65    3.65% 01 Mar 2026      —           11,126   
   Gilead Sciences Inc Sr Unsecured 09/20 2.55    2.55% 01 Sep 2020      —           36,075   
   Glaxosmithkline Capital Company    1.5% 5/08/20 17      —           31,754   
   Glencore Funding LLC    2.5% 15 Jan 2019      —           12,915   
  

Gm Financial Automobile Leasin Gmalt 2015 2 A3

  

1.68% 20 Dec 2018

     —           28,671   
  

Gm Financial Automobile Leasin Gmalt 2015 3 A3

  

1.69% 20 Mar 2019

     —           19,391   
  

Gmf Floorplan Owner Revolving Gfort 2015 1 A1 144A

  

1.65% 15 May 2020

     —           10,608   

 

30


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Goldman Sachs Group    7.5% 15 Feb 2019      —           15,732   
   Goldman Sachs Group    6.0% 15 Jun 2020      —           12,041   
   Goldman Sachs Group    5.75% 24 Jan 2022      —           12,703   
   Goldman Sachs Group    7.5% 15 Feb 2019      —           29,497   
   Goldman Sachs Group    1.0% 29 Nov 2023      —           31,381   
   Goldman Sachs Group Inc    5.95% 18 Jan 2018      —           28,503   
   Goldman Sachs Group Inc    1.0% 15 Nov 2018      —           33,130   
   Goldman Sachs Group Inc    4.0% 03 Mar 2024      —           12,206   
   Goldman Sachs Group Inc Sr Unsecured 09/20 2.75    7.5% 15 Feb 2019      —           7,557   
   Grupo Bimbo Sab De Cv    3.875% 27 Jun 2024      —           8,552   
   GS Mortgage Securities Trust    3.68% 10 Apr 2047      —           29,573   
   Halliburton Co Sr Unsecured 11/22 3.375    3.375% 15 Nov 2022      —           13,699   
   Harley Davidson Motorcycle Tru Hdmot 2015 2 A3    1.3% 16 Mar 2020      —           21,876   
   Hartford Finl Svcs Grp    5.5% 30 Mar 2020      —           9,093   
   Hartford Finl Svcs Grp    5.125% 15 Apr 2022      —           7,549   
   Hcp Inc Sr Unsecured 02/25 3.4    3.4% 01 Feb 2025      —           14,887   
   Hcp Inc Sr Unsecured 12/22 4    4.0% 01 Dec 2022      —           27,198   
   Health Care Reit Inc    5.25% 15 Jan 2022      —           18,960   
   Health Care Reit Inc    2.25% 15 Mar 2018      —           13,049   
   Healthcare Realty Trust    3.75% 15 Apr 2023      —           2,690   
   Hess Corp    8.125% 15 Feb 2019      —           17,140   
   Hewlett Packard Co    4.30% 01 Jun 2021      —           30,292   
   Hewlett Packard Co    3.75% 01 Dec 2020      —           1,125   
   Hewlett Packard Co    4.65% 09 Dec 2021      —           3,390   
   Hilton USA Trust    2.662% 05 Nov 2030      —           37,320   
   Host Hotels + Resorts Lp Sr Unsecured 02/26 4.5    4.5% 01 Feb 2026      —           6,785   
   Host Hotels + Resorts Lp Sr Unsecured 10/23 3.75    3.75% 15 Oct 2023      —           431   
   Hp Enterprise Co Sr Unsecured 144A 10/20 3.6    3.6% 15 Oct 2020      —           13,952   
   Hp Enterprise Co Sr Unsecured 144A 10/20 3.6    3.6% 15 Oct 2020      —           21,255   
   Hp Enterprise Co Sr Unsecured 144A 10/22 4.4    4.4% 15 Oct 2022      —           13,867   
   HSBC Holdings PLC    5.1% 05 Apr 2021      —           8,789   
   HSBC USA Inc    2.375% 13 Nov 2019      —           15,744   
   Humana Inc    7.2% 15 Jun 2018      —           16,729   
   Huntington National Bank Sr Unsecured 11/18 2.2    2.2% 06 Nov 2018      —           13,882   
   Ibm Corp Sr Unsecured 11/22 2.875    2.875% 09 Nov 2022      —           19,272   
   Ingram Micro Inc    4.95% 15 Dec 2024      —           6,164   
   International Paper Co    3.65% 15 Jun 2024      —           1,143   
   International Paper Co Sr Unsecured 01/26 3.8    3.8% 15 Jan 2026      —           5,113   
   Intl Bk Recon & Develop    9.25% 15 Jul 2017      —           4,810   
   Israel Electric Corp Ltd Sr Secured 144A Regs 11/24 5    5.0% 12 Nov 2024      —           8,934   
   Jabil Circuit Inc    5.625% 15 Dec 2020      —           10,827   
   Jabil Circuit Inc    8.25% 15 Mar 2018      —           3,407   
   JP Morgan Chase & Co    3.625% 13 May 2024      —           16,917   
   Jp Morgan Chase Commercial Mor Jpmcc 2015 Sgp A 144A    1.0% 15 Jul 2036      —           13,868   
   JP Morgan Chase Commercial Mortgage    5.42% 15 Jan 2049      —           43,197   
   JPMBB Commercial Mortgage Secu    2.878% 15 Feb 2047      —           64,401   
   Jpmbb Commercial Mortgage Secu Jpmbb 2015 C32 Asb    3.358% 15 Nov 2048      —           42,244   
  

JPMorgan Chase & Co

  

6.0% 15 Jan 2018

     —           33,039   
  

JPMorgan Chase & Co

  

4.4% 22 Jul 2020

     —           10,456   
  

JPMorgan Chase & Co

  

6.0% 15 Jan 2018

     —           14,849   

 

31


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   JPMorgan Chase Commercial Mortgage    1.0% 12 Jun 2043      —           17,973   
   JPMorgan Chase Commercial Mortgage    5.439% 15 Jan 2049      —           48,586   
   JPMorgan Chase Commercial Mortgage    2.7493% 15 Nov 2043      —           737   
   Key Bank Na Sr Unsecured 10/27 3.18    3.18% 15 Oct 2027      —           13,753   
   Kinder Morgan    5.95% 15 Feb 2018      —           14,448   
   Kinder Morgan    6.85% 15 Feb 2020      —           22,041   
   Kinder Morgan    4.15% 01 Mar 2022      —           18,630   
   Kinder Morgan    4.15% 01 Mar 2022      —           5,986   
   Kinder Morgan    3.95% 01 Sep 2022      —           11,220   
   Kinder Morgan Inc/Delawa Company Guar 144A 11/23 5.625    5.625% 15 Nov 2023      —           7,541   
   KLA Tencor Corp    4.65% 01 Nov 2024      —           11,447   
   Kla Tencor Corp Sr Unsecured 11/21 4.125    4.125% 01 Nov 2021      —           2,065   
   Kohl S Corporation Sr Unsecured 07/25 4.25    4.25% 17 Jul 2025      —           10,893   
   Korea National Oil Corp    3.125% 03 Apr 2017      —           17,275   
   Kraft Heinz Foods Co Company Guar 144A 07/20 2.8    2.8% 02 Jul 2020      —           15,598   
   Kraft Heinz Foods Co Company Guar 144A 07/20 2.8    2.8% 02 Jul 2020      —           17,141   
   Laboratory Corp Of Amer Sr Unsecured 02/25 3.6    3.6% 01 Feb 2025      —           4,643   
   Liberty Property LP    5.5% 15 Dec 2016      —           2,485   
   Liberty Property LP    6.625% 01 Oct 2017      —           1,475   
   Life Technologies Corp    6.0% 01 Mar 2020      —           20,765   
   Lincoln National Corp    8.75% 01 Jul 2019      —           4,211   
   Lloyds Bank Plc Company Guar 03/18 1.75    1.75% 16 Mar 2018      —           31,021   
   Lloyds Banking Group Plc    4.5% 04 Nov 2024      —           10,816   
   Lyondellbasell Ind    5.0% 15 Apr 2019      —           31,445   
   Macys Retail Hldgs Inc    3.875% 15 Jan 2022      —           14,215   
   Magna International Inc    3.625% 15 Jun 2024      —           11,250   
   Marathon Petroleum Corp    5.125% 01 Mar 2021      —           5,519   
   Marathon Petroleum Corp Sr Unsecured 12/20 3.4    3.4% 15 Dec 2020      —           12,658   
   Mcgraw Hill Financial In Company Guar 02/26 4.4    4.4% 15 Feb 2026      —           10,128   
   Mcgraw Hill Financial In Company Guar 08/20 3.3    3.3% 14 Aug 2020      —           6,760   
   Medtronic Inc Company Guar 03/20 2.5    2.5% 15 Mar 2020      —           30,980   
   Medtronic Inc Company Guar 03/22 3.15    3.15% 15 Mar 2022      —           16,157   
   Mercedes Benz Auto Lease Trust Mbalt 2015 B A3    1.34% 16 Jul 2018      —           10,434   
   Merrill Lynch Mortgage    1.0% 12 Aug 2043      —           10,331   
*    Met Life Glob Funding I Secured 144A 12/20 2.5    2.5% 03 Dec 2020      —           19,138   
   Methanex Corp    3.25% 15 Dec 2019      —           7,872   
*    Metlife Inc    7.717% 15 Feb 2019      —           4,712   
*    Metlife Inc    6.817% 15 Aug 2018      —           14,321   
   Microsoft Corp Sr Unsecured 02/22 2.375    2.375% 12 Feb 2022      —           24,426   
   Mizuho Bank Ltd    2.45% 16 Apr 2019      —           16,505   
   ML CFC Commercial Mortgage Trust    1.0% 12 Mar 2051      —           39,644   
   ML CFC Commercial Mortgage Trust    5.166% 12 Dec 2049      —           18,415   
   ML CFC Commercial Mortgage Trust    5.7% 12 Sep 2049      —           25,719   
   Morgan Stanley    5.5% 24 Jul 2020      —           10,593   
   Morgan Stanley    3.875% 29 Apr 2024      —           8,934   
   Morgan Stanley    5.5% 28 Jul 2021      —           12,014   
   Morgan Stanley    5.625% 23 Sep 2019      —           19,648   
   Morgan Stanley    5.55% 27 Apr 2017      —           7,393   
   Morgan Stanley    5.95% 28 Dec 2017      —           25,687   

 

32


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost  (1)      Current Value  
   Morgan Stanley    6.625% 01 Apr 2018      —           48,053   
   Morgan Stanley    6.625% 01 Apr 2018      —           28,266   
   Morgan Stanley BAML Trust    3.669% 15 Feb 2047      —           32,368   
   Morgan Stanley Baml Trust Msbam 2015 C22 A4    3.306% 15 Apr 2048      —           9,141   
   Morgan Stanley Capital I    1.0% 11 Jun 2042      —           18,721   
   Murray St Inv Trust I    1.0% 08 Mar 2017      —           1,629   
   Mylan Inc    4.2% 29 Nov 2023      —           32,378   
   Nabors Industries Inc    5.0% 15 Sep 2020      —           12,062   
   Nabors Industries Inc Company Guar 09/21 4.625    4.625% 15 Sep 2021      —           4,943   
   National Bank Of Canada Bank Guarant 12/18 2.1    2.1% 14 Dec 2018      —           27,806   
   National Fuel Gas Co Sr Unsecured 07/25 5.2    5.2% 15 Jul 2025      —           14,976   
   Nevada Power Co    6.5% 01 Aug 2018      —           9,536   
   Nisource Finance Corp    6.8% 15 Jan 2019      —           19,665   
   Nisource Finance Corp    6.125% 01 Mar 2022      —           16,130   
   Nissan Auto Lease Trust Nalt 2015 A A3    1.4% 15 Jun 2018      —           18,352   
   Nissan Auto Receivables Owner Narot 2015 A A3    1.05% 15 Oct 2019      —           30,550   
   Noble Energy Inc    8.25% 01 Mar 2019      —           13,339   
   Noble Energy Inc    3.9% 15 Nov 2024      —           7,617   
   Noble Holding Intl Ltd    4.9% 01 Aug 2020      —           104   
   Nomura Holdings Inc    2.0% 13 Sep 2016      —           16,978   
   Nordea Bank Ab Sr Unsecured 144A 09/20 2.5    2.5% 17 Sep 2020      —           32,117   
   Oceaneering Intl Inc    4.65% 15 Nov 2024      —           10,527   
   Oneok Partners Lp Company Guar 10/22 3.375    3.375% 01 Oct 2022      —           16,727   
   Owens Corning Inc    6.5% 01 Dec 2016      —           424   
   Perrigo Finance Plc    3.5% 15 Dec 2021      —           6,815   
   Petroleos Mexicanos    3.5% 18 Jul 2018      —           5,320   
   Philip Morris Intl Inc    5.65% 16 May 2018      —           937   
   Philip Morris Intl Inc    2.9% 15 Nov 2021      —           4,000   
   Pioneer Natural Resource Sr Unsecured 01/21 3.45    3.45% 15 Jan 2021      —           6,189   
   Plains All Amer Pipeline Sr Unsecured 06/22 3.65    3.65% 01 Jun 2022      —           11,651   
   Plains All Amer Pipeline Sr Unsecured 10/25 4.65    4.65% 15 Oct 2025      —           900   
   Plains All Amer Pipeline Sr Unsecured 11/24 3.6    3.6% 01 Nov 2024      —           8,906   
   Plains Exploration & Pro    6.875% 15 Feb 2023      —           15,157   
   PNC Bank NA    2.4% 18 Oct 2019      —           15,009   
   PNC Bank NA    2.2% 28 Jan 2019      —           14,655   
*    Prudential Financial Inc    3.5% 15 May 2024      —           32,270   
*    Prudential Financial Inc    4.5% 15 Nov 2020      —           10,476   
   Puget Energy Inc Sr Secured 144A 05/25 3.65    3.65% 15 May 2025      —           2,165   
   Quest Diagnostic Inc    4.75% 30 Jan 2020      —           12,205   
   Quest Diagnostics Inc    4.7% 01 Apr 2021      —           4,550   
   Regency Centers LP    5.875% 15 Jun 2017      —           3,951   
   Reliance Steel & Alum    4.5% 15 Apr 2023      —           2,720   
   Republic Services Inc    3.8% 15 May 2018      —           463   
   Residential Asset Securities    1.0% 25 May 2033      —           219   
   Reynolds American Inc    3.25% 01 Nov 2022      —           7,884   
   Reynolds American Inc Company Guar 06/19 8.125    8.125% 23 Jun 2019      —           23,660   
   Reynolds American Inc Company Guar 06/22 4    4.0% 12 Jun 2022      —           15,293   
   Rio Tinto Fin Usa Ltd    3.5% 02 Nov 2020      —           842   
   Rio Tinto Fin Usa Ltd Company Guar 09/21 3.75    3.75% 20 Sep 2021      —           7,851   
   Rio Tinto Fin Usa PLC    3.5% 22 Mar 2022      —           17,656   

 

33


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
   Rockwell Collins Inc    1.0% 15 Dec 2016      —           6,347   
   Ross Stores Inc    3.375% 15 Sep 2024      —           13,363   
   Rowan Companies Inc    5.0% 01 Sep 2017      —           12,110   
   Santander Drive Auto Receivabl    1.15% 15 Jan 2019      —           11,667   
   Santander Drive Auto Receivabl Sdart 2015 2 A3    1.22% 15 Apr 2019      —           37,837   
   Santander Drive Auto Receivabl Sdart 2015 3 A2A    1.02% 17 Sep 2018      —           9,163   
   Santander Drive Auto Receivabl Sdart 2015 4 A2A    1.2% 17 Dec 2018      —           9,433   
   Santander Holdings USA    4.625% 19 Apr 2016      —           4,507   
   Santander Issuances Company Guar 11/25 5.179    5.179% 19 Nov 2025      —           20,310   
   Schlumberger Hldgs Corp Sr Unsecured 144A 12/20 3    3.0% 21 Dec 2020      —           13,740   
   Schlumberger Hldgs Corp Sr Unsecured 144A 12/22 3.625    3.625% 21 Dec 2022      —           19,183   
   SCSLC 2010    1.0% 25 Jul 2025      —           48,011   
   Sempra Energy    4.05% 01 Dec 2023      —           17,348   
   Sempra Energy Sr Unsecured 03/20 2.4    2.4% 15 Mar 2020      —           26,107   
   Shell International Fin Company Guar 11/18 1.625    1.625% 10 Nov 2018      —           27,516   
   Simon Property Group Lp Sr Unsecured 09/20 2.5    2.5% 01 Sep 2020      —           28,550   
   Sky Plc    2.625% 16 Sep 2019      —           31,475   
   SLM Student Loan Trust    1.0% 25 Sep 2019      —           30,696   
   Smart Trust    1.25% 14 Aug 2018      —           37,463   
   Snap On Inc    4.25% 15 Jan 2018      —           11,534   
   Societe Generale    5.0% 17 Jan 2024      —           11,036   
   Solvay Finance (America) Company Guar 144A 12/25 4.45    4.45% 03 Dec 2025      —           6,782   
   Southern Cal Edison    5.5% 15 Aug 2018      —           14,979   
   Spectra Energy Capital    8.00% 01 Oct 2019      —           4,417   
   Spectra Energy Partners    2.95% 25 Sep 2018      —           3,377   
   Spectra Energy Partners Sr Unsecured 03/25 3.5    3.5% 15 Mar 2025      —           13,980   
   Standard Chartered PLC    1.0% 12 Jul 2022      —           17,303   

*

   State Street Corp    3.7% 20 Nov 2023      —           6,974   
   Svenska Handelsbanken AB Bank    2.875% 04 Apr 2017      —           8,740   
   Synchrony Credit Card Master N Synct 2015 3 A    1.74% 15 Sep 2021      —           13,809   
   Synchrony Financial Sr Unsecured 08/19 3    3.0% 15 Aug 2019      —           14,587   
   Talent Yield Investments    4.5% 25 Apr 2022      —           17,621   
   Talisman Energy Sr Unsecured 02/21 3.75    3.75% 01 Feb 2021      —           10,284   
   Teck Resources Limited    4.5% 15 Jan 2021      —           7,012   
   Telefonica Emisiones Sau    5.462% 16 Feb 2021      —           6,338   
   Time Warner Cable Inc    5.0% 01 Feb 2020      —           4,366   
   Time Warner Inc    3.55% 01 Jun 2024      —           22,428   
   Time Warner Inc    3.55% 01 Jun 2024      —           9,275   
   Time Warner Inc    4.75% 29 Mar 2021      —           15,147   
   Time Warner Inc    2.1% 01 Jun 2019      —           24,952   
   Time Warner Inc Company Guar 07/25 3.6    3.6% 15 Jul 2025      —           11,041   
   Toronto Dominion Bank Sr Unsecured 12/20 2.5    2.5% 14 Dec 2020      —           27,829   
   Total System Services    2.375% 01 Jun 2018      —           4,830   
   Trans Canada Pipelines Sr Unsecured 08/22 2.5    2.5% 01 Aug 2022      —           2,367   
   Transocean Inc    6.5% 15 Nov 2020      —           4,032   
   Travelers Cos Inc    5.75% 15 Dec 2017      —           13,715   
   Trust F/1401    5.25% 15 Dec 2024      —           13,304   
   Tyson Foods Inc    2.65% 15 Aug 2019      —           3,061   
   Ubs Group Funding Company Guar 144A 09/20 2.95    2.95% 24 Sep 2020      —           11,066   
   Ubs Group Funding Company Guar 144A 09/25 4.125    4.125% 24 Sep 2025      —           6,970   

 

34


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
   Unicredito Luxem Fin    6.0% 31 Oct 2017      —           8,268   
   Unum Group    5.625% 15 Sep 2020      —           14,365   
   Valero Energy Corp    6.125% 01 Feb 2020      —           9,969   
   Verizon Communications    3.5% 01 Nov 2024      —           30,315   
   Verizon Communications    3.65% 14 Sep 2018      —           29,831   
   Verizon Communications    5.15% 15 Sep 2023      —           23,237   
   Viacom Inc    3.875% 01 Apr 2024      —           5,185   
   Viacom Inc    5.625% 15 Sep 2019      —           2,413   
   Viacom Inc Sr Unsecured 12/21 3.875    3.875% 15 Dec 2021      —           4,731   
   Vodafone Group    2.95% 19 Feb 2023      —           2,577   
   Vodafone Group Plc Sr Unsecured 09/22 2.5    2.5% 26 Sep 2022      —           11,621   
   Volkswagen Auto Loan    0.91% 22 Oct 2018      —           18,973   
   Volvo Financial Equipment Llc Vfet 2015 1A A3 144A    1.51% 17 Jun 2019      —           30,580   
   Wachovia Bank Commercial Mortg Wbcmt 2006 C26 A1A    1.0% 15 Jun 2045      —           6,888   
   Walgreens Boots Alliance    3.8% 18 Nov 2024      —           15,672   
   Waste Management Inc    6.1% 15 Mar 2018      —           26,225   
   Waste Management Inc    4.75% 30 Jun 2020      —           15,647   
   Wells Fargo + Company Sr Unsecured 02/25 3    3.0% 19 Feb 2025      —           15,378   
   Wells Fargo + Company Sr Unsecured 07/20 2.6    2.6% 22 Jul 2020      —           27,426   
   Welltower Inc Sr Unsecured 06/25 4    4.0% 01 Jun 2025      —           12,509   
   Western Union Co    3.65% 22 Aug 2018      —           16,030   
   Western Union Co    3.35% 22 May 2019      —           8,353   
   Westpac Banking Corp Sr Unsecured 11/20 2.6    2.6% 23 Nov 2020      —           18,460   
   WF RBS Commercial Mortgage    3.337% 15 Jun 2046      —           15,883   
   WF RBS Commercial Mortgage    2.921% 15 Dec 2046      —           19,423   
   WF RBS Commercial Mortgage Trust    3.66% 15 Mar 2047      —           22,181   
   Williams Partners LP    5.25% 15 Mar 2020      —           13,088   
   Williams Partners LP    3.9% 15 Jan 2025      —           7,361   
   Williams Partners LP    4.0% 15 Nov 2021      —           9,747   
   Williams Partners LP    7.25% 01 Feb 2017      —           11,391   
   Williams Partners Lp Sr Unsecured 03/22 3.6    3.6% 15 Mar 2022      —           6,622   
   World Financial Network    3.14% 17 Jan 2023      —           50,964   
   World Financial Network    1.76% 17 May 2021      —           36,120   
   World Financial Network    1.61% 15 Dec 2021      —           8,780   
   World Financial Network Credit WFNMT    1.0% 15 Dec 2019      —           14,780   
   World Financial Network Credit Wfnmt 2015 A A    1.0% 15 Feb 2022      —           12,367   
   Xerox Corporation Sr Unsecured 05/18 6.35    6.35% 15 May 2018      —           5,696   
   Xerox Corporation Sr Unsecured 05/20 2.8    2.8% 15 May 2020      —           3,769   
   Yamana Gold Inc    4.95% 15 Jul 2024      —           11,396   
   Zimmer Biomet Holdings Sr Unsecured 04/20 2.7    2.7% 01 Apr 2020      —           26,302   
           

 

 

 
  

Corporate and Other Obligations

        —           6,773,214   
        

 

 

 
   Insurance Contract         
           

 

 

 

*

   Metropolitan Life Insurance Company    Separate Investment Account      —           5,170,933   
           

 

 

 

 

35


Baxter Healthcare of Puerto Rico

Savings and Investment Plan

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

Employer Identification Number: 66-0678126 and Plan Number 024

December 31, 2015

 

 

Identity of Issue

  

Description of Investment

   Cost (1)      Current Value  
Benefit Responsive Interest Rate Wrapper Contracts      
*    Metropolitan Life Insurance Company    Open Ended Maturity      —           (5,865)   
*    Prudential Financial Inc    Open Ended Maturity      —           (2,637)   
*    Transamerica Inc.    Open Ended Maturity      —           (5,423)   
           

 

 

 
           —           (13,925)   
           

 

 

 
  

Synthetic Guaranteed Investment Contracts (contract value equals $21,149,685)

     —           21,948,522   
        

 

 

 
Commingled Investments:         
*   

State Street International Index Non-Lending Series Fund

   Commingled Investments      —           2,364,628   
*   

SSgA EAFE Equity Fund

   Commingled Investments      —           87,375   
*    Northern Trust Domestic Mid Cap Fund    Commingled Investments      —           452,757   
*   

State Street S&P 500 Index Non-Lending Series Fund

   Commingled Investments      —           7,961,079   
*    Vanguard Target Retirement 2010    Commingled Investments      —           66,179   
*    Vanguard Target Retirement 2015    Commingled Investments      —           467,361   
*    Vanguard Target Retirement 2020    Commingled Investments      —           721,546   
*    Vanguard Target Retirement 2025    Commingled Investments      —           659,278   
*    Vanguard Target Retirement 2030    Commingled Investments      —           814,399   
*    Vanguard Target Retirement 2035    Commingled Investments      —           875,406   
*    Vanguard Target Retirement 2040    Commingled Investments      —           1,151,298   
*    Vanguard Target Retirement 2045    Commingled Investments      —           572,955   
*    Vanguard Target Retirement 2050    Commingled Investments      —           1,143,771   
*    Vanguard Target Retirement Income    Commingled Investments      —           152,783   
*   

State Street Russell Small Cap Index Non-Lending Series Fund

   Commingled Investments      —           2,699,602   
           

 

 

 
      Commingled Investments      —           20,190,417   
        

 

 

 
*    Participant Loans    Interest rates range from 4.25% to 7.75%      —           4,132,402   
     

 

 

 
Collateral Held on Loaned Securities      
*    SSgA Quality D Short-term Investment Fund         —           187,915   
           

 

 

 
   Total Investments         —           60,464,663   
           

 

 

 

 

* 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.

 

36


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 HEALTHCARE of PUERTO RICO SAVINGS AND INVESTMENT PLAN
Date: June 28, 2016     By:  

/s/ James K. Saccaro

      James K. Saccaro
      Member of the Administrative Committee