bax-8k_20171231.htm

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 11-K

 

 

 

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

For the year ended December 31, 2017

OR

 

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

For the transition period from                      to                     

Commission file number 1-4448

 

 

 

A.

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

Baxter International Inc. and Subsidiaries

Incentive Investment Plan

 

B.

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

Baxter International Inc.

One Baxter Parkway

Deerfield, IL 60015

(224) 948-2000

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Index

December 31, 2017 and 2016

 

 

 

Page(s)

 

 

 

Report of Independent Registered Public Accounting Firm

 

1

 

 

 

Financial Statements

 

 

 

 

 

Statements of Net Assets Available for Benefits as of December 31, 2017 and 2016

 

3

 

 

 

Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 20167 and 2016

 

4

 

 

 

Notes to Financial Statements

 

5-13

 

 

 

Supplemental Information

 

 

 

 

 

Schedule H, Line 4i:  Schedule of Assets (Held at End of Year) as of December 31, 2017

 

14-36

 


 

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

 

To the Participants and Administrative Committee of

the Baxter International Inc. and Subsidiaries Incentive Investment Plan

Deerfield, Illinois

 

Opinion on the Financial Statements

 

We have audited the accompanying statements of net assets available for benefits of the Baxter

International Inc. and Subsidiaries Incentive Investment Plan (the plan) as of December 31, 2017 and 2016, and the related statements of changes in net assets available for benefits for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2017 and 2016, and the changes in net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on the Plan's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting in accordance with the  standards of the PCAOB. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion in accordance with the standards of the PCAOB.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

 

 

 

 

 

 

 

 

 

 

1

 


 

 

 

 

Supplemental Information

 

The supplemental Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2017 has been subjected to audit procedures performed in conjunction with the audit of the Baxter International Inc. and Subsidiaries Incentive 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

 

We have served as the Plan’s auditor since 2010.

 

Oak Brook, Illinois

June 29, 2018

 

 

 

2

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Statements of Net Assets Available for Benefits

December 31, 2017 and 2016 (in thousands)

 

 

 

 

 

2017

 

 

2016

 

Assets

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

94,428

 

 

$

24,924

 

Common stock (including securities on loan of $236 in 2017 and zero

   in 2016)

 

 

392,305

 

 

 

394,810

 

U.S. government and government agency issues (including securities

   on loan of $5,023 in 2017 and $6,424 in 2016)

 

 

33,782

 

 

 

27,610

 

Corporate and other obligations (including securities on loan of $1,934

   in 2017 and $774 in 2016)

 

 

21,064

 

 

 

23,469

 

Common-collective trusts

 

 

1,289,580

 

 

 

1,062,237

 

Self-managed fund

 

 

60,930

 

 

 

51,236

 

Collateral held on loaned securities

 

 

7,343

 

 

 

7,335

 

Total investments at fair value

 

 

1,899,432

 

 

 

1,591,621

 

Synthetic guaranteed investment contracts at contract value

 

 

548,882

 

 

 

596,279

 

Total investments

 

 

2,448,314

 

 

 

2,187,900

 

Receivables

 

 

 

 

 

 

 

 

Notes receivables from participants

 

 

35,829

 

 

 

36,065

 

Sponsor contribution

 

 

18,507

 

 

 

17,823

 

Accrued interest and dividends

 

 

845

 

 

 

2,220

 

Due from brokers for securities sold

 

 

5,726

 

 

 

9,975

 

Total receivables

 

 

60,907

 

 

 

66,083

 

Total assets

 

 

2,509,221

 

 

 

2,253,983

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

 

9,527

 

 

 

10,043

 

Due to brokers for securities purchased

 

 

9,205

 

 

 

17,785

 

Collateral to be paid on loaned securities

 

 

7,343

 

 

 

7,335

 

Total liabilities

 

 

26,075

 

 

 

35,163

 

Net assets available for benefits

 

$

2,483,146

 

 

$

2,218,820

 

 

 

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

 

3

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Statements of Changes in Net Assets Available for Benefits

For the Years Ended December 31, 2017 and 2016 (in thousands)

 

 

 

 

2017

 

 

2016

 

Additions to net assets attributed to

 

 

 

 

 

 

 

 

Investment income

 

 

 

 

 

 

 

 

Net appreciation in fair value of investments

 

$

331,531

 

 

$

122,001

 

Interest

 

 

17,327

 

 

 

18,558

 

Dividends

 

 

3,755

 

 

 

5,437

 

Net investment income

 

 

352,613

 

 

 

145,996

 

Participant loan interest

 

 

3,173

 

 

 

3,135

 

Contributions

 

 

 

 

 

 

 

 

Sponsor

 

 

44,626

 

 

 

51,456

 

Participant

 

 

76,599

 

 

 

77,009

 

Total contributions

 

 

121,225

 

 

 

128,465

 

Total additions

 

 

477,011

 

 

 

277,596

 

Deductions from net assets attributed to

 

 

 

 

 

 

 

 

Benefits paid

 

 

207,514

 

 

 

172,956

 

Plan expenses

 

 

5,171

 

 

 

5,558

 

Total deductions

 

 

212,685

 

 

 

178,514

 

Net increase

 

 

264,326

 

 

 

99,082

 

Net assets available for benefits

 

 

 

 

 

 

 

 

Beginning of year

 

 

2,218,820

 

 

 

2,119,738

 

End of year

 

$

2,483,146

 

 

$

2,218,820

 

 

 

 

 

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

 

4

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2017 and 2016

 

1.

General Description of the Plan

 

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

 

The Plan is a defined contribution plan the predecessor of which originally became effective on January 1, 1960.  The Plan was created for the purpose of providing retirement benefits to United States employees of Baxter International Inc. (the Sponsor or the Company) and its subsidiaries, and to encourage and assist employees in adopting a regular savings program by means of payroll deductions through a plan that qualifies under the United States Internal Revenue Code.  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 $18,000 a year in 2017 and 2016, respectively.  Participants who have attained the age of 50 by the end of the year may contribute up to an additional $6,000 per year in “catch-up” contributions in 2017 and 2016, respectively.  Newly hired employees are deemed to have elected to contribute 4% of compensation (increased by 1% per year to a total of 10%) unless they make a contrary election. The Company matches a participant’s savings contributions on a dollar for dollar basis up to 3.0% of the participant’s compensation, and matches any contributions between 3% and 4% of compensation at the rate of 50 cents for each dollar of a participant’s pre-tax contribution, so that the maximum matching contribution for participants who contribute at least 4% of their compensation is 3.5% 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 U.S. qualified defined benefit pension plan, which includes all new employees hired on or after January 1, 2007, and employees who had less than five years of service on January 1, 2007 and who elected to cease earning additional service in the pension plan and participate in the higher level of Company contributions in the Plan.  

 

Participants are immediately vested in the elective contributions and matching contribution plus actual earnings thereon.  The additional non-matching contributions become fully vested after three years of service.  Participants are fully vested in the Company’s non-matching contributions account, regardless of years of service with the Company, upon attaining age 65, upon becoming disabled in accordance with the provisions of the Plan or upon dying while employed by the Company.  Forfeitures of nonvested accounts are used to reduce future employer 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, matching contributions made prior to 2008, vested non-matching contributions and related earnings in cases of financial hardship and in certain other circumstances.  In the case of a participant termination by reason of death or disability, the entire vested amount is paid to the person or persons legally entitled thereto.

 

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

 

 

 

 

5


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2017 and 2016

 

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.  Participants may not direct contributions to the Self-Managed Fund but can transfer funds into the Self-Managed Fund from other investment options. In addition, certain participants may maintain shares received in connection with Baxter’s 1996 spin-off of Allegiance Corporation (Allegiance), which were subsequently converted into common shares of Cardinal Health Inc. (Cardinal) upon Cardinal’s acquisition of Allegiance in 1999. These shares are maintained in the Cardinal Health Common Stock Fund. Additionally, certain participants maintain shares in Edwards Lifesciences Corporation.  These shares were placed into the Edwards Lifesciences Common Stock Fund in connection with Baxter’s 2000 spin-off of its cardiovascular business.  Certain participants obtained shares in Baxalta Incorporated (Baxalta), in connection with Baxter’s 2015 spin-off of its biopharmaceutical business. These shares were placed in the Baxalta Common Stock Fund, which were subsequently converted into American Depository Shares of Shire plc (Shire) upon Shire’s acquisition of Baxalta in 2016.  These shares are maintained in the Shire Common Stock Fund.  Participants are not able to make contributions or transfer existing account balances to the Cardinal Health Common Stock Fund, 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.  As of December 31, 2017, investments in shares of Cardinal, Edwards Lifesciences and Shire were liquidated and balances in these funds consisted of cash balances only.  Refer to Note 10 for more information.  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 June 3, 2016, a wholly-owned subsidiary of Shire merged with and into Baxalta, with Baxalta as the surviving company (the Merger). In connection with the closing of the Merger, each Baxalta stockholder received a combination of cash and Shire American Depository Shares. 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).

 

2.

Summary of Significant Accounting Policies

 

Basis of Accounting  

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

 

 

Valuation of Investments and Collateral

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

 

Cash and cash equivalents

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

 

Common stock

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

 

 

 

 

6


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2017 and 2016

 

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.

 

Common-collective trusts

Value based on net asset values reported by the fund managers as of the Plan’s financial statement dates and recent transaction prices.  Each fund provides for daily redemptions by the Plan at reported net asset values per share, with no advance notice requirement.  

 

 

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 6 for more information on the securities lending program.

 

Collateral to be paid on loaned securities

 

 

Self-managed fund

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

 

Value based on the fair value of the underlying securities in the fund. Fund contains holdings of cash and cash equivalents, common stock, corporate and other obligations and holdings with registered investment companies. Registered investment companies are valued based upon the closing price from a national security exchange on the valuation date.

 

 

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.

 

Fully Benefit-responsive 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. 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.  

 

These Plan investments are presented at contract value on the Statements of 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.  

 

 

 

7


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2017 and 2016

 

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, the Plan’s record keeping and trustee fees, and certain legal and communication expenses 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 broker 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, common-collective trusts, 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 in U.S. government and government agency issues and corporate and other obligations 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 International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2017 and 2016

 

3.

Eligibility Requirements

 

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

 

A.

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

 

B.

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

 

C.

U.S. employees who are not leased employees.

 

4.

Administration of the Plan

 

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

 

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

 

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

 

5.

Fair Value Measurements

 

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

 

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

 

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

 

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

 

 

 

9


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2017 and 2016

 

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,

2017

 

 

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

 

$

94,428

 

 

 

 

 

 

$

94,428

 

 

$

 

Common stock

 

 

392,305

 

 

 

392,305

 

 

 

 

 

 

 

U.S. government and government agency issues

 

 

33,782

 

 

 

 

 

 

33,782

 

 

 

 

Corporate and other obligations

 

 

21,064

 

 

 

 

 

 

21,064

 

 

 

 

Self-managed fund

 

 

60,930

 

 

 

51,654

 

 

 

9,276

 

 

 

 

Common-collective trusts (A)

 

 

1,289,580

 

 

 

 

 

 

 

 

 

 

Collateral held on loaned securities

 

 

7,343

 

 

 

 

 

 

7,343

 

 

 

 

Total assets

 

$

1,899,432

 

 

$

443,959

 

 

$

165,893

 

 

$

 

Liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral to be paid on loaned securities

 

$

7,343

 

 

$

 

 

$

7,343

 

 

$

 

 

 

 

 

 

 

 

Basis of Fair Value Measurement

 

(in thousands)

 

Balance at

December 31,

2016

 

 

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

 

$

24,924

 

 

$

 

 

$

24,924

 

 

$

 

Common stock:

 

 

394,810

 

 

 

394,810

 

 

 

 

 

 

 

U.S. government and government agency issues

 

 

27,610

 

 

 

 

 

 

27,610

 

 

 

 

Corporate and other obligations

 

 

23,469

 

 

 

 

 

 

23,469

 

 

 

 

Self-managed fund

 

 

51,236

 

 

 

41,513

 

 

 

9,723

 

 

 

 

Common-collective trusts (A)

 

 

1,062,237

 

 

 

 

 

 

 

 

 

 

Collateral held on loaned securities

 

 

7,335

 

 

 

 

 

 

7,335

 

 

 

 

Total assets

 

$

1,591,621

 

 

$

436,323

 

 

$

93,061

 

 

$

 

Liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral to be paid on loaned securities

 

$

7,335

 

 

$

 

 

$

7,335

 

 

$

 

 

 

(A)

The common-collective trusts, which are measured at fair value using the net asset per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the above tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the statements of net assets available for benefits. This category includes index funds and target date retirement funds for which the underlying investments may vary. These funds provide for daily redemptions by the Plan at reported net asset values per share and there are currently no redemption restrictions or unfunded commitments on these investments.


 

 

 

10


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2017 and 2016

 

Transfers between hierarchy measurement levels are recognized by the Plan as of the beginning of the reporting period. The Plan did not have any transfers between Levels 1 and 2 during 2017 and 2016.

 

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.

Securities Lending Transactions

 

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

 

The Trustee requires the Borrowers, pursuant to a security loan agreement, to deliver collateral to secure each loan in an amount that is at least equal to the fair value of the securities loaned.  The Plan bears the risk of loss with respect to any unfavorable change in fair value of the invested cash collateral.  However, the Borrowers bear 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 any of the Borrowers, the Trustee 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 Trustee shall credit the Plan for the market value of the unreturned securities.  In each case, the Trustee would apply the proceeds from the collateral for such a loan to make the Plan whole. 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, 2017 and 2016, the Plan had securities on loan with a fair value of $7.2 million, with cash collateral received of $7.3 million, which was invested in the State Street Quality D Short-Term Investment Fund. Investments underlying this fund primarily consisted of cash and cash equivalents and asset-backed securities as of both December 31, 2017 and 2016, and the net asset value of this fund was approximately $1.00 per unit.  As of December 31, 2017 and 2016 the cash collateral received is reflected at its fair value of $7.3 million in the 2017 and 2016 Statements of Net Assets Available for Benefits, respectively.

 

Non-cash collateral of $2.4 million and $4.3 million received for securities on loan at December 31, 2017 and December 31, 2016, respectively, consisted of U.S. government and government agency issues, equity securities, and corporate and other obligations held by the Trustee on behalf of the Plan. Non-cash collateral is not included with the collateral balance on the 2017 and 2016 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 Trustee in its capacity as a security agent.  Securities lending income allocated to the Plan amounted to $29 thousand and $38 thousand for 2017 and 2016, respectively.  Securities lending income is classified as interest income in the Statements of Changes in Net Assets Available for Benefits.

 

7.Plan Termination

 

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

fully vested and such termination of the Plan would not reduce the interest of any participating employee or their beneficiaries accrued under the Plan up to the date of such termination.

 

 

 

 

11


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2017 and 2016

 

8.Tax Status of the Plan

The Internal Revenue Service (IRS) has determined and informed the Plan sponsor by a letter dated February 6, 2017 that the Plan is designed in accordance with applicable sections of the Internal Revenue Code (the IRC).  The Plan sponsor believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC.  Therefore, no provision for income taxes has been included in the Plan’s financial statements.  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, 2017 and 2016, 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 2014.

 

9.

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, 2017 and 2016, the Plan held shares of registered investment companies of SSgA, and participation units in common-collective trusts and short-term investment funds of State Street Bank and Trust Company, the Plan Custodian and Charles Schwab, the brokerage provider; loans with participants; shares of common stock, shares of registered investment companies, units of common-collective trusts, fixed income securities, or bonds managed by AllianceBernstein, Northern Trust Corporation, Loomis Sayles, 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; shares of registered investment companies in various affiliates of Voya Institutional Plan Services, LLC, the recordkeeper; shares of common stock of Edward Lifesciences Corporation, Cardinal, and shares of common stock and bonds of Shire, entities the Company has either previously spun off or acquired operations that the Company previously spun off. The Plan held shares of common stock of Baxter, the Plan Sponsor. At December 31, 2017 and 2016, the Plan, inclusive of shares within the Plan’s self-managed fund, held 2,226,706 and 2,396,964 shares of common stock of Baxter, valued at $143,934,306 and $106,281,457, respectively. Approximately $1 million of dividend income was received in 2017 and 2016 related to shares of Baxter common stock held by the Plan. Additionally, at December 31, 2017 and 2016, the Plan held notes receivable from participants of $35,829,168 and $36,064,666, respectively. 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.

 

10.

Subsequent Event

 

Effective January 1, 2018, the Baxter Plan eliminated the Cardinal Common Stock Fund, the Edwards Lifesciences Common Stock Fund, and the Shire Stock Fund (collectively the “Funds”).  Any dollars that were

invested in these Funds automatically liquidated on January 1, 2018 and were reinvested in the Plan’s qualified default investment alternative.  Actual common shares held in these funds were liquidated as of December 31, 2017 and the balances in these funds as of that date consisted of cash balances only.

 

Additionally, effective January 1, 2018, participant balances in the Baxter Common Stock Fund are limited to no more than 25 percent of the participant’s total Plan account balance, subject to certain grandfathering exceptions for those participants whose balances exceed 25 percent as of the effective date.

 

 

 

12


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

Notes to Financial Statements

December 31, 2017 and 2016

 

 

Plan participants were given advance notice of the fund changes noted above and were allowed to reinvest their funds prior to the effective date.

 

In January 2018, the Company announced changes to its U.S. pension plans. The Company spun off the assets and liabilities of the qualified defined benefit pension plan attributable to current employees into a new plan and will freeze the pay and service amounts used to calculate pension benefits for active participants in the U.S. pension plans as of December 31, 2022.  In connection with this announcement, the Company amended the Plan to provide five years of transition contributions to active participants in the U.S. pension plans that were still employed by the Company as of December 31, 2017 and who remain employed at the end of each of the five transition contribution years.  These additional benefits will begin accruing on January 1, 2023.  Eligible participants will receive transition benefit contributions under the Plan of (a) 20% of an employee’s eligible annual compensation (to $60,000), and (b) 3% of eligible annual compensation over $60,000 for each of the five years beginning January 1, 2023. Payment of these transition contributions is subject to satisfaction of related eligibility requirements as of each payment date.

 

 

 

 

 

 

13


 

SUPPLEMENTAL SCHEDULE

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Cash & Cash Equivalents:

 

 

 

 

 

 

 

 

 

 

Freddie Mac Discount Nt Discount Not

 

0.01% 21 Feb 2018

 

-

 

$

2,787,224

 

 

 

Freddie Mac Discount Nt Discount Not

 

0.01% 22 Feb 2018

 

-

 

 

1,024,249

 

 

 

Cash Mgmt Bill

 

0.01% 2 Jan 2018

 

-

 

 

1,810,003

 

 

 

US Dollar

 

Cash

 

-

 

 

(442,985

)

 

 

CAD Dollar

 

Cash

 

-

 

 

4,543

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

2,437,653

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

1,956,748

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

16,085

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

2,612,696

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

85,919

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

756,280

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

20,219,865

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

2,842,706

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

4,137,288

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

22,447,130

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

803,955

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

1,071

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

30,927,140

 

 

 

Cash & Cash Equivalents

 

 

 

-

 

 

94,427,570

 

 

 

Common Stock:

 

 

 

 

 

 

 

 

 

 

Abbvie Inc Common Stock

 

Common Stock

 

-

 

 

2,086,285

 

 

 

Activision Blizzard Inc Common Stock

 

Common Stock

 

-

 

 

2,891,535

 

 

 

Adidas Ag Sponsored

 

Common Stock

 

-

 

 

618,739

 

 

 

Adobe Systems Inc Common Stock

 

Common Stock

 

-

 

 

6,250,851

 

 

 

Albemarle Corp Common Stock

 

Common Stock

 

-

 

 

2,932,754

 

 

 

Alexion Pharmaceuticals Inc Common Stock

 

Common Stock

 

-

 

 

1,932,717

 

 

 

Alibaba Group Holdings Sp

 

Common Stock

 

-

 

 

9,454,351

 

 

 

Allergan Plc Common Stock

 

Common Stock

 

-

 

 

1,690,360

 

 

 

Alphabet Inc Cl A Common Stock

 

Common Stock

 

-

 

 

6,156,518

 

 

 

Alphabet Inc Cl A Common Stock

 

Common Stock

 

-

 

 

358,481

 

 

 

Alphabet Inc Cl C Common Stock

 

Common Stock

 

-

 

 

6,187,859

 

 

 

Amazon.Com Inc Common Stock

 

Common Stock

 

-

 

 

10,969,262

 

 

 

Antero Resources Corp Common Stock

 

Common Stock

 

-

 

 

546,318

 

 

 

Aon Plc Common Stock

 

Common Stock

 

-

 

 

356,880

 

 

 

Apple Inc Common Stock

 

Common Stock

 

-

 

 

13,094,216

 

 

 

Applied Materials Inc Common Stock

 

Common Stock

 

-

 

 

368,101

 

 

 

Bank of America Corp Common Stock

 

Common Stock

 

-

 

 

704,669

 

 

*

Baxter International Inc Common Stock

 

Common Stock

 

-

 

 

143,451,625

 

 

 

Berkshire Hathaway Inc Cl B Common Stock

 

Common Stock

 

-

 

 

439,930

 

 

 

Biomarin Pharmaceutical Inc Common Stock

 

Common Stock

 

-

 

 

2,692,727

 

 

 

Boeing Co/The Common Stock

 

Common Stock

 

-

 

 

6,231,940

 

 

 

Booking Holidngs Inc Common Stock

 

Common Stock

 

-

 

 

2,864,275

 

 

 

Bp Plc Spons

 

Common Stock

 

-

 

 

402,147

 

 

 

Bristol Myers Squibb Co Common Stock

 

Common Stock

 

-

 

 

4,845,222

 

 

 

Broadcom Ltd Common Stock

 

Common Stock

 

-

 

 

4,092,513

 

 

14

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Capital One Financial Corp Common Stock

 

Common Stock

 

-

 

 

550,065

 

 

 

Caterpillar Inc Common Stock

 

Common Stock

 

-

 

 

1,261,216

 

 

 

CBS Corp Class B Non Voting Common Stock

 

Common Stock

 

-

 

 

439,392

 

 

 

Celgene Corp Common Stock

 

Common Stock

 

-

 

 

3,434,311

 

 

 

Charter Communications Inc A Common Stock

 

Common Stock

 

-

 

 

3,367,929

 

 

 

Chubb Ltd Common Stock

 

Common Stock

 

-

 

 

468,464

 

 

 

Citigroup Inc Common Stock

 

Common Stock

 

-

 

 

638,563

 

 

 

Concho Resources Inc Common Stock

 

Common Stock

 

-

 

 

2,141,012

 

 

 

Corning Inc Common Stock

 

Common Stock

 

-

 

 

1,431,018

 

 

 

Costco Wholesale Corp Common Stock

 

Common Stock

 

-

 

 

3,916,319

 

 

 

Crown Castle Intl Corp Reit

 

Common Stock

 

-

 

 

1,394,816

 

 

 

Delta Air Lines Inc Common Stock

 

Common Stock

 

-

 

 

439,146

 

 

 

Eog resources Inc Common Stock

 

Common Stock

 

-

 

 

1,811,865

 

 

 

Estee Lauder Companies Cl A Common Stock

 

Common Stock

 

-

 

 

3,764,286

 

 

 

Exelon Corp Common Stock

 

Common Stock

 

-

 

 

322,655

 

 

 

Facebook Inc Common Stock

 

Common Stock

 

-

 

 

9,766,698

 

 

 

First Data Corp Class A Common Stock

 

Common Stock

 

-

 

 

535,690

 

 

 

Flex Ltd Common Stock

 

Common Stock

 

-

 

 

511,066

 

 

 

Fluor Corp Common Stock

 

Common Stock

 

-

 

 

471,265

 

 

 

Freeport McMoran Inc Common Stock

 

Common Stock

 

-

 

 

265,571

 

 

 

Goldman Sachs Group Inc Common Stock

 

Common Stock

 

-

 

 

3,978,259

 

 

 

Goodyear Tire + Rubber Co Common Stock

 

Common Stock

 

-

 

 

392,009

 

 

 

Home Depot Inc Common Stock

 

Common Stock

 

-

 

 

4,883,388

 

 

 

Illumina Inc Common Stock

 

Common Stock

 

-

 

 

2,440,534

 

 

 

Inditex Unspon

 

Common Stock

 

-

 

 

1,411,472

 

 

 

Intel Corp Common Stock

 

Common Stock

 

-

 

 

389,301

 

 

 

International Paper Co Common Stock

 

Common Stock

 

-

 

 

517,226

 

 

 

Jpmorgan Chage + Co Common Stock

 

Common Stock

 

-

 

 

4,745,486

 

 

 

Kering Unspondered

 

Common Stock

 

-

 

 

2,928,798

 

 

 

Keysight Technologies In Common Stock

 

Common Stock

 

-

 

 

375,464

 

 

 

Marriott International Cl A Common Stock

 

Common Stock

 

-

 

 

5,988,640

 

 

 

Marsh + Mclennan Cos Common Stock

 

Common Stock

 

-

 

 

289,019

 

 

 

Mastercard Inc A Common Stock

 

Common Stock

 

-

 

 

7,544,212

 

 

 

McDonald's Corp Common Stock

 

Common Stock

 

-

 

 

5,153,142

 

 

 

Merck + Co. Inc. Common Stock

 

Common Stock

 

-

 

 

469,015

 

 

 

Metlife Inc Common Stock

 

Common Stock

 

-

 

 

416,435

 

 

 

Micro Focus Intl Spn

 

Common Stock

 

-

 

 

371,092

 

 

 

Micron Technology Inc Common Stock

 

Common Stock

 

-

 

 

277,842

 

 

 

Microsoft Corp Common Stock

 

Common Stock

 

-

 

 

8,992,535

 

 

 

Microsoft Corp Common Stock

 

Common Stock

 

-

 

 

392,352

 

 

 

Monster Beverage Corp Common Stock

 

Common Stock

 

-

 

 

2,843,031

 

 

 

Morgan Stanley Common Stock

 

Common Stock

 

-

 

 

2,410,350

 

 

 

Netflix Inc Common Stock

 

Common Stock

 

-

 

 

7,828,845

 

 

 

Nvidia Corp Common Stock

 

Common Stock

 

-

 

 

4,520,722

 

 

 

Occidental Petroleum Corp Common Stock

 

Common Stock

 

-

 

 

515,874

 

 

 

Oracle Corp Common Stock

 

Common Stock

 

-

 

 

480,361

 

 

 

Parker Hannifin Corp Common Stock

 

Common Stock

 

-

 

 

4,520,041

 

 

15

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Paypal Holdings Inc Common Stock

 

Common Stock

 

-

 

 

3,614,239

 

 

 

Pentair Plc Common Stock

 

Common Stock

 

-

 

 

487,617

 

 

 

Pfizer Inc Common Stock

 

Common Stock

 

-

 

 

510,902

 

 

 

Red Hat Inc Common Stock

 

Common Stock

 

-

 

 

3,483,752

 

 

 

S+P Global Inc Common Stock

 

Common Stock

 

-

 

 

2,643,965

 

 

 

Sabre Corp Common Stock

 

Common Stock

 

-

 

 

264,898

 

 

 

Salesforce.Com Inc Common Stock

 

Common Stock

 

-

 

 

6,092,436

 

 

 

Splunk Inc Common Stock

 

Common Stock

 

-

 

 

2,153,721

 

 

 

Tencet Holdings Ltd

 

Common Stock

 

-

 

 

8,519,592

 

 

 

Tesla Inc Common Stock

 

Common Stock

 

-

 

 

3,835,264

 

 

 

Thermo Fisher Scientific Inc Common Stock

 

Common Stock

 

-

 

 

468,245

 

 

 

Total SA Spon

 

Common Stock

 

-

 

 

605,264

 

 

 

Unitedhealth Group Inc Common Stock

 

Common Stock

 

-

 

 

2,942,043

 

 

 

Vertex Pharmceuticals Inc Common Stock

 

Common Stock

 

-

 

 

2,377,865

 

 

 

Visa Inc Class A Shares Common Stock

 

Common Stock

 

-

 

 

7,136,411

 

 

 

Vodafone Group Plc Sp

 

Common Stock

 

-

 

 

467,273

 

 

 

Walmart Inc Common Stock

 

Common Stock

 

-

 

 

496,776

 

 

 

Workday Inc Class A Common Stock

 

Common Stock

 

-

 

 

2,577,956

 

 

 

Common Stock

 

 

 

-

 

 

392,305,284

 

 

**

U.S. Government and Government Agency Issues:

 

 

 

 

 

 

 

 

 

 

Abu Dhabi Govt Int L Sr Unsecured

 

2.5% 11 Oct 2022

 

-

 

 

217,503

 

 

 

Fed Hm Ln Pc Pool C48827 FG

 

6% 01 March 2031

 

-

 

 

839

 

 

 

Fed Hm Ln Pc Pool G12334 FG

 

5% 01 Sep 2021

 

-

 

 

18,424

 

 

 

Fed Hm Ln Pc Pool Q29797 Fg

 

3.5% 01 Nov 2044

 

-

 

 

74,892

 

 

 

Fed Hm Ln Pc Pool Q35223 FG

 

4% 01 Aug 2045

 

-

 

 

48,607

 

 

 

Fed Hm Ln Pc Pool Q39583 Fg

 

4.5% 11 Mar 2046

 

-

 

 

22,713

 

 

 

Fed Hm Ln Pc Pool Q45166 Fg

 

3.5% 01 Dec 2046

 

-

 

 

541,301

 

 

 

Fed Hm Ln PC Pool Q46343 FG

 

4% 01 Feb 2047

 

-

 

 

545,309

 

 

 

Fed Hm Ln Pc Pool Q46522 Fg

 

3.5% 01 Mar 2047

 

-

 

 

34,817

 

 

 

Fed Hm Ln PC Pool Q47881 FG

 

4% 01 May 2047

 

-

 

 

25,142

 

 

 

Fed Hm Ln PC Pool Q48185 FG

 

4% 01 May 2047

 

-

 

 

72,473

 

 

 

Fed Hm Ln PC Pool Q48734 FG

 

4% 01 Jun 2047

 

-

 

 

86,725

 

 

 

Fed Hm Ln PC Pool Q48748 FG

 

4% 01 Jun 2047

 

-

 

 

69,524

 

 

 

Fed Hm Ln Pc Pool Q50232 Fg

 

3.5% 01 Aug 2047

 

-

 

 

54,991

 

 

 

Fed Hm Ln Pc Pool Q50240 Fg

 

4.5% 01 Aug 2047

 

-

 

 

46,863

 

 

 

Fed Hm Ln Pc Pool Q51179 Fg

 

3.5% 01 Oct 2047

 

-

 

 

126,537

 

 

 

Fed Hm Ln Pc Pool Q51697 Fg

 

3.5% 01 Nov 2047

 

-

 

 

80,923

 

 

 

Fed Hm Ln Pc Pool Q51803 Fg

 

3.5% 01 Nov 2047

 

-

 

 

55,822

 

 

 

Fed Hm Ln Pc Pool Q52122 Fg

 

3.5% 01 Nov 2047

 

-

 

 

60,951

 

 

 

Fed Hm Ln Pc Pool Q52334 Fg

 

3.5% 01 Nov 2047

 

-

 

 

45,585

 

 

 

Fed Hm Ln Pc Pool Q52872 Fg

 

3.5% 01 Dec 2047

 

-

 

 

66,037

 

 

 

Fed Hm Ln Pc Pool V82504 FG

 

3% 01 July 2046

 

-

 

 

98,058

 

 

 

Fnma Pool 256398 Fn

 

6% 01 Sep 2021

 

-

 

 

4,866

 

 

 

Fnma Pool 725690 Fn

 

6% 01 Aug 2034

 

-

 

 

46,966

 

 

 

Fnma Pool 748115 Fn

 

6% 01 Oct 2033

 

-

 

 

16,738

 

 

 

Fnma Pool 815316 Fn

 

5.5% 01 May 2035

 

-

 

 

73,910

 

 

 

Fnma Pool 885504 Fn

 

6% 01 Jun 2021

 

-

 

 

10,852

 

 

16

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Fnma Pool 902793 Fn

 

6.5% 01 Nov 2036

 

-

 

 

18,852

 

 

 

Fnma Pool Ah4008 Fn

 

4% 01 Mar 2041

 

-

 

 

206,582

 

 

 

Fnma Pool Al8704 Fn

 

4% 01 May 2046

 

-

 

 

89,328

 

 

 

Fnma Pool Ap6604 Fn

 

3% 01 Sep 2042

 

-

 

 

489,667

 

 

 

Fnma Pool Aq9715 Fn

 

3% 01 Jan 2043

 

-

 

 

63,964

 

 

 

Fnma Pool As3867 Fn

 

4% 01 Nov 2044

 

-

 

 

303,722

 

 

 

Fnma Pool As6582 Fn

 

3.5% 01 Feb 2046

 

-

 

 

60,171

 

 

 

Fnma Pool As7409 Fn

 

4.5% 01 Jun 2046

 

-

 

 

129,261

 

 

 

Fnma Pool As7738 Fn

 

3% 01 Aug 2046

 

-

 

 

70,157

 

 

 

Fnma Pool As8073 Fn

 

2.5% 01 Oct 2046

 

-

 

 

89,435

 

 

 

Fnma Pool As8686 Fn

 

3% 01 Jan 2047

 

-

 

 

62,191

 

 

 

Fnma Pool As9949 Fn

 

3.5% 01 Apr 2046

 

-

 

 

150,152

 

 

 

Fnma Pool Au4359 Fn

 

4.5% 01 Sep 2043

 

-

 

 

110,850

 

 

 

Fnma Pool Aw0206 Fn

 

4.5% 01 Feb 2044

 

-

 

 

61,389

 

 

 

Fnma Pool Ax5231 Fn

 

4.5% 01 Nov 2044

 

-

 

 

34,144

 

 

 

Fnma Pool Ay6582 Fn

 

3.5% 01 Feb 2045

 

-

 

 

78,516

 

 

 

Fnma Pool Bc1170 Fn

 

4.5% 01 Jun 2046

 

-

 

 

49,549

 

 

 

Fnma Pool Bc2614 Fn

 

3% 01 Oct 2046

 

-

 

 

59,746

 

 

 

Fnma Pool Bc3473 Fn

 

3.5% 01 Jan 2046

 

-

 

 

53,984

 

 

 

Fnma Pool Bc7230 Fn

 

3.5% 01 Apr 2046

 

-

 

 

48,028

 

 

 

Fnma Pool Bc8972 Fn

 

3% 01 Jul 2046

 

-

 

 

463,152

 

 

 

Fnma Pool Bc9081 Fn

 

3% 01 Dec 2046

 

-

 

 

66,628

 

 

 

Fnma Pool Bd1410 Fn

 

3.5% 01 Jun 2046

 

-

 

 

47,236

 

 

 

Fnma Pool Bd2217 Fn

 

4.5% 01 Jul 2046

 

-

 

 

14,901

 

 

 

Fnma Pool Bd3032 Fn

 

3.5% 01 Sep 2046

 

-

 

 

41,364

 

 

 

Fnma Pool Bd6459 Fn

 

3.5% 01 Sep 2046

 

-

 

 

64,589

 

 

 

Fnma Pool Bd8318 Fn

 

3.5% 01 Dec 2046

 

-

 

 

57,944

 

 

 

Fnma Pool Bd9324 Fn

 

3.5% 01 Oct 2046

 

-

 

 

37,310

 

 

 

Fnma Pool Bd9442 Fn

 

3.5% 01 Nov 2046

 

-

 

 

37,757

 

 

 

Fnma Pool Be0215 Fn

 

3.5% 01 Jan 2047

 

-

 

 

37,677

 

 

 

Fnma Pool Be1670 Fn

 

4% 01 Oct 2046

 

-

 

 

60,994

 

 

 

Fnma Pool Be2944 Fn

 

4% 01 Dec 2046

 

-

 

 

472,216

 

 

 

Fnma Pool Be4442 Fn

 

3% 01 Nov 2046

 

-

 

 

33,877

 

 

 

Fnma Pool Be4446 Fn

 

3.5% 01 Nov 2046

 

-

 

 

43,347

 

 

 

Fnma Pool Be6469 Fn

 

3% 01 Dec 2046

 

-

 

 

72,718

 

 

 

Fnma Pool Be7159 Fn

 

4% 01 Feb 2047

 

-

 

 

68,033

 

 

 

Fnma Pool Be7912 Fn

 

3% 01 Feb 2047

 

-

 

 

72,934

 

 

 

Fnma Pool Be8213 Fn

 

3.5% 01 Apr 2047

 

-

 

 

95,322

 

 

 

Fnma Pool Be9612 Fn

 

3.5% 01 Jun 2047

 

-

 

 

40,284

 

 

 

Fnma Pool Bf0175 Fn

 

2.5% 01 Jan 2057

 

-

 

 

153,739

 

 

 

Fnma Pool Bh0156 Fn

 

3.5% 01 Mar 2047

 

-

 

 

68,511

 

 

 

Fnma Pool Bh4266 Fn

 

4% 01 Jun 2047

 

-

 

 

105,313

 

 

 

Fnma Pool Bh5863 Fn

 

4.5% 01 May 2047

 

-

 

 

83,532

 

 

 

Fnma Pool Bh6738 Fn

 

3.5% 01 Aug 2047

 

-

 

 

52,621

 

 

 

Fnma Pool Bh7892 Fn

 

4% 01 Nov 2047

 

-

 

 

41,549

 

 

 

Fnma Pool Bh9314 Fn

 

3.5% 01 Sep 2047

 

-

 

 

55,341

 

 

 

Fnma Pool Bj0428 Fn

 

4% 01 Oct 2047

 

-

 

 

45,858

 

 

17

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Fnma Pool Bj0466 Fn

 

4% 01 Nov 2047

 

-

 

 

72,959

 

 

 

Fnma Pool Ma0734 Fn

 

4.5% 01 May 2031

 

-

 

 

116,136

 

 

 

Fnma Pool Ma2781 Fn

 

2.5% 01 Oct 2046

 

-

 

 

962,678

 

 

 

Fnma Pool Ma2854 Fn

 

2.5% 01 Dec 2046

 

-

 

 

155,057

 

 

 

Fnma Tba 30 Yr 4.5 Single Family Mortgage

 

4.5% 13 Feb 2048

 

-

 

 

1,220,119

 

 

 

Freddie Mac Notes

 

6.25% 15 July 2032

 

-

 

 

55,349

 

 

 

Gnma Ii Pool 710082

 

4.7% 20 Jul 2061

 

-

 

 

22,536

 

 

 

Gnma Ii Pool 710089

 

4.7% 20 Oct 2061

 

-

 

 

19,260

 

 

 

Gnma Ii Pool 751415

 

4.58% 20 Aug 2061

 

-

 

 

16,104

 

 

 

Gnma Ii Pool 756731

 

4.68% 20 Mar 2062

 

-

 

 

12,464

 

 

 

Gnma Ii Pool 766519

 

4.66% 20 May 2062

 

-

 

 

33,672

 

 

 

Gnma Ii Pool 766522

 

4.52% 20 Nov 2062

 

-

 

 

49,859

 

 

 

Gnma Ii Pool 766544

 

4.49% 20 Dec 2062

 

-

 

 

49,812

 

 

 

Gnma Ii Pool 766549

 

4.62% 20 Jul 2062

 

-

 

 

64,659

 

 

 

Gnma Ii Pool 767659

 

4.64% 20 Sep 2063

 

-

 

 

134,406

 

 

 

Gnma Ii Pool 771800

 

4.63% 20 Jan 2064

 

-

 

 

58,509

 

 

 

Gnma Ii Pool 798510

 

4.63% 20 Jan 2064

 

-

 

 

109,693

 

 

 

Gnma Ii Pool Aa1698

 

4.39% 20 Feb 2063

 

-

 

 

82,309

 

 

 

Gnma Ii Pool Aa7548

 

4.63% 20 Apr 2064

 

-

 

 

193,165

 

 

 

Gnma Ii Pool Ab8466

 

3.18% 20 Sep 2063

 

-

 

 

256,605

 

 

 

Gnma Ii Pool Ac0988

 

4.42% 20 Jul 2063

 

-

 

 

35,914

 

 

 

Gnma Ii Pool Ac9906

 

4.23% 20 May 2063

 

-

 

 

31,768

 

 

 

Gnma Ii Pool Ac9910

 

4.5% 20 July 2063

 

-

 

 

35,871

 

 

 

Gnma Ii Pool Ah1430

 

4.57% 20 Apr 2065

 

-

 

 

67,261

 

 

 

Gnma Ii Pool An4723

 

4.47% 20 May 2065

 

-

 

 

185,450

 

 

 

Kuwait Intl Bond Sr Unsecured 144A

 

3.5% 20 Mar 2027

 

-

 

 

415,750

 

 

 

Mex Bonos Desarr Fix Rt Bonds

 

6.5% 10 Jun 2021

 

-

 

 

438,246

 

 

 

Mex Bonos Desarr Fix Rt Bonds

 

5.75% 05 Mar 2026

 

-

 

 

797,721

 

 

 

Oman Gov Interntl Bond Sr Unsecured 144A

 

3.88% 08 Mar 2022

 

-

 

 

198,465

 

 

 

Republica Orient Uruguay Sr Unsecured 144A

 

8.5% 15 Mar 2028

 

-

 

 

77,238

 

 

 

Saudi International Bond Sr Unsecured 144A

 

3.25% 26 Oct 2026

 

-

 

 

275,627

 

 

 

Saudi International Bond Sr Unsecured 144A

 

4.5% 26 Oct 2046

 

-

 

 

196,887

 

 

 

Tenn Valley Authority Sr Unsecured

 

4.88% 15 Jan 2048

 

-

 

 

109,181

 

 

 

Tenn Valley Authority Sr Unsecured

 

5.25% 15 Sep 2039

 

-

 

 

153,013

 

 

 

Tenn Valley Authority Sr Unsecured

 

6.25% 15 Sep 2060

 

-

 

 

68,390

 

 

 

Tenn Valley Authority Sr Unsecured

 

4.25% 15 Sep 2065

 

-

 

 

244,898

 

 

 

Tsy Infl Ix N

 

1% 15 Feb 2046

 

-

 

 

1,645,484

 

 

 

Tsy Infl Ix N/B

 

0.75% 15 Feb 2045

 

-

 

 

1,661,509

 

 

 

Tsy Infl Ix N/B

 

0.88% 15 Feb 2047

 

-

 

 

649,400

 

 

 

Tsy Infl Ix N/B

 

0.25% 15 Jan 2025

 

-

 

 

224,000

 

 

 

Tsy Infl Ix N/B

 

0.13% 15 Apr 2018

 

-

 

 

2,843,871

 

 

 

Tsy Infl Ix N/B

 

0.13% 15 Jul 2024

 

-

 

 

1,179,772

 

 

 

Us Treasury N/B

 

3.75% 15 Nov 2043

 

-

 

 

699,320

 

 

 

Us Treasury N/B

 

3.63% 15 Feb 2044

 

-

 

 

276,715

 

 

 

Us Treasury N/B

 

2.75% 15 Nov 2047

 

-

 

 

167,964

 

 

 

Us Treasury N/B

 

2.25% 31 Dec 2024

 

-

 

 

1,353,905

 

 

 

Us Treasury N/B

 

1.38% 31 Oct 2020

 

-

 

 

43,672

 

 

18

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Us Treasury N/B

 

2.13% 31 Dec 2022

 

-

 

 

1,340,872

 

 

 

Us Treasury N/B

 

1% 31 Dec 2017

 

-

 

 

853,243

 

 

 

Us Treasury N/B

 

0.88% 31 Mar 2018

 

-

 

 

34,481

 

 

 

Us Treasury N/B

 

0.63% 30 Jun 2018

 

-

 

 

687,627

 

 

 

Us Treasury N/B

 

0.75% 31 Jul 2018

 

-

 

 

382,806

 

 

 

Us Treasury N/B

 

0.75% 30 Sep 2018

 

-

 

 

1,522,959

 

 

 

Us Treasury N/B

 

0.75% 31 Oct 2018

 

-

 

 

83,154

 

 

 

Us Treasury N/B

 

1% 30 Jun 2019

 

-

 

 

1,052,046

 

 

 

Us Treasury N/B

 

0.75% 28 Feb 2018

 

-

 

 

2,631,233

 

 

 

Us Treasury N/B

 

2.25% 15 Feb 2027

 

-

 

 

219,029

 

 

 

U.S. Government and Government Agency Issues

 

 

 

-

 

 

33,781,898

 

 

**

Corporate and Other Obligations:

 

 

 

 

 

 

 

 

 

 

Acwa Power Mgmt Invst Sr Secured 144A

 

5.95% 15 Dec 2039

 

-

 

 

201,957

 

 

 

Ally Financial Inc Sr Unsecured

 

3.75% 18 Nov 2019

 

-

 

 

134,843

 

 

 

Amazon.Com Inc Sr Unsecured 144A

 

4.25% 22 Aug 2057

 

-

 

 

247,495

 

 

 

Amc Networks Inc Company Guar

 

4.75% 01 Aug 2025

 

-

 

 

63,555

 

 

 

Americredit Automobile Receiva Amcar 2015 4 B

 

2.11% 08 Jan 2021

 

-

 

 

93,659

 

 

 

Americredit Automobile Receiva Amcar 2015 4 C

 

2.88% 07 Jul 2021

 

-

 

 

64,671

 

 

 

Americredit Automobile Receiva Amcar 2016 2 A

 

1.6% 09 Nov 2020

 

-

 

 

19,696

 

 

 

Americredit Automobile Receiva Amcar 2016 2 B

 

2.21% 10 may 2021

 

-

 

 

14,786

 

 

 

Americredit Automobile Receiva Amcar 2017 1 A

 

1.87% 18 Aug 2021

 

-

 

 

34,414

 

 

 

Americredit Automobile Receiva Amcar 2017 2 A

 

1.98% 20 Dec 2021

 

-

 

 

24,563

 

 

 

Amerigas Part/Fin Corp Sr Unsecured

 

5.5% 20 May 2025

 

-

 

 

14,944

 

 

 

At+T Inc Sr Unsecured

 

4.35% 15 Jun 2045

 

-

 

 

4,550

 

 

 

At+T Inc Sr Unsecured

 

4.75% 15 May 2046

 

-

 

 

14,471

 

 

 

At+T Inc Sr Unsecured

 

4.5% 09 Mar 2048

 

-

 

 

52,682

 

 

 

At+T Inc Sr Unsecured

 

5.25% 01 Mar 2037

 

-

 

 

78,244

 

 

 

At+T Inc Sr Unsecured

 

5.45% 01 Mar 2047

 

-

 

 

94,882

 

 

 

At+T Inc Sr Unsecured

 

5.7% 01 Mar 2057

 

-

 

 

97,503

 

 

 

Avis Budget Rental Car Funding Aesop 2016 1A A 144A

 

2.99% 20 Jun 2022

 

-

 

 

109,179

 

 

 

Avis Budget Rental Car Funding Aesop 2017 1A A 144A

 

3.07% 20 Sep 2023

 

-

 

 

149,060

 

 

 

Banco Santander Chile Sr Unsecured 144A

 

3.88% 20 Sep 2022

 

-

 

 

205,033

 

 

 

Bank Of America Corp Sr Unsecured

 

5.63% 01 Jul 2020

 

-

 

 

335,782

 

 

 

Bank Of America Corp Sr Unsecured

 

5% 13 may 2021

 

-

 

 

143,533

 

 

 

Barclays Plc Sr Unsecured

 

2.875% 08 Jun 2020

 

-

 

 

455,127

 

 

 

Bharti Airtel Internatio Company Guar 144A

 

5.35% 20 May 2024

 

-

 

 

212,598

 

 

 

Biogen Inc Sr Unsecured

 

2.9% 15 Sep 2020

 

-

 

 

59,991

 

 

 

Braskem America Finance Company Guar 144A

 

7.13% 22 Jul 2041

 

-

 

 

386,549

 

 

 

Cardtronics Inc / Usa Company Guar 144A

 

5.5% 01 May 2025

 

-

 

 

17,805

 

 

 

Cbre Services Inc Company Guar

 

5% 15 Mar 2023

 

-

 

 

65,932

 

 

 

Chs/Community Health Sys Sr Secured

 

6.25% 31 Mar 2023

 

-

 

 

53,266

 

 

 

Citigroup Inc Sr Unsecured

 

2.65% 26 Oct 2020

 

-

 

 

158,354

 

 

 

Citigroup Inc Sr Unsecured

 

2.05% 07 Dec 2018

 

-

 

 

103,464

 

 

 

Citigroup Inc Subordinated

 

4.05% 30 Jul 2022

 

-

 

 

169,398

 

 

 

Cnh Industrial Cap Llc Company Guar

 

4.38% 05 Apr 2022

 

-

 

 

81,751

 

 

 

Colony American Finance Ltd Cafl 2015 1 A 144A

 

2.9% 15 Oct 2047

 

-

 

 

143,505

 

 

 

Comm Mortgage Trust Comm 2013 Gam A2 144A

 

3.37% 10 Feb 2028

 

-

 

 

99,508

 

 

19

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Comm Mortgage Trust Comm 2016 Sava A 144A

 

3.15% 15 Oct 2034

 

-

 

 

136,593

 

 

 

Comm Mortgage Trust Comm 2016 Sava C 144A

 

4.43% 15 Oct 2034

 

-

 

 

98,882

 

 

 

Contl Airlines 2007 1 Pass Thru Ce

 

5.98% 19 Oct 2023

 

-

 

 

231,964

 

 

 

Contl Airlines 2012 2 A Pass Thru Ce

 

4% 29 Apr 2026

 

-

 

 

139,384

 

 

 

Cps Auto Trust Cps 2015 C C 144A

 

3.42% 16 Aug 2021

 

-

 

 

148,613

 

 

 

Cumberland Farms Sr Unsecured 144A

 

6.75% 01 May 2025

 

-

 

 

20,912

 

 

 

Discovery Communications Company Guar

 

5% 20 Sep 2037

 

-

 

 

76,651

 

 

 

Discovery Communications Company Guar

 

5.2% 20 Sep 2047

 

-

 

 

77,215

 

 

 

Drive Auto Receivables Trust Drive 2016 Ba B 144A

 

2.56% 15 Jun 2020

 

-

 

 

15,782

 

 

 

Drive Auto Receivables Trust Drive 2017 1 B

 

2.36% 15 Mar 2021

 

-

 

 

29,619

 

 

 

Drive Auto Receivables Trust Drive 2017 Aa B 144A

 

2.51% 15 jan 2021

 

-

 

 

29,675

 

 

 

Drive Auto Receivables Trust Drive 2017 Aa C 144A

 

2.98% 18 Jan 2022

 

-

 

 

34,756

 

 

 

El Puerto De Liverpool Company Guar 144A

 

3.88% 06 Oct 2026

 

-

 

 

274,098

 

 

 

Embarq Corp Sr Unsecured

 

8% 01 Jun 2036

 

-

 

 

134,299

 

 

 

Embraer Netherlands Fina Company Guar

 

5.05% 15 jun 2025

 

-

 

 

115,015

 

 

 

Enel Americas Sa Sr Unsecured

 

4% 25 Oct 2026

 

-

 

 

30,059

 

 

 

Enel Generacion Chile Sa Sr Unsecured

 

4.25% 15 Apr 2024

 

-

 

 

46,376

 

 

 

Energy Transfer Partners Company Guar

 

6.05% 01 Jun 2041

 

-

 

 

295,929

 

 

 

Energy Transfer Partners Company Guar

 

5.2% 01 Feb 2022

 

-

 

 

42,125

 

 

 

Ensco Plc Sr Unsecured

 

4.5% 01 Oct 2024

 

-

 

 

49,715

 

 

 

Ensco Plc Sr Unsecured

 

5.75% 01 Oct 2044

 

-

 

 

54,055

 

 

 

Equifax Inc Sr Unsecured

 

7% 01 Jul 2037

 

-

 

 

187,918

 

 

 

Ew Scripps Co Company Guar 144A

 

5.125% 15 May 2025

 

-

 

 

19,630

 

 

 

Exeter Automobile Receivables Eart 2016 1A A 144A

 

2.35% 15 Jul 2020

 

-

 

 

7,572

 

 

 

Exeter Automobile Receivables Eart 2017 1A A 144A

 

1.96% 15 Mar 2021

 

-

 

 

22,725

 

 

 

Fanniemae Aces Fna 2015 M15 A2

 

2.92% 25 Oct 2025

 

-

 

 

138,953

 

 

 

Fanniemae Aces Fna 2015 M17 A2

 

2.94% 25 Nov 2025

 

-

 

 

59,959

 

 

 

Fanniemae Aces Fna 2016 M4 A2

 

2.58%25 Mar 2026

 

-

 

 

91,888

 

 

 

Fanniemae Aces Fna 2017 M3 A2

 

2.49% 25 Dec 2026

 

-

 

 

71,880

 

 

 

Fhlmc Multifamily Structured P Fhms K050 A2

 

3.33% 25 Aug 2025

 

-

 

 

66,688

 

 

 

Fhlmc Multifamily Structured P Fhms K051 A2

 

3.31% 25 Sep 2025

 

-

 

 

51,194

 

 

 

Fhlmc Multifamily Structured P Fhms K052 A2

 

3.15% 25 Nov 2025

 

-

 

 

76,006

 

 

 

Fhlmc Multifamily Structured P Fhms K053 A2

 

3.0% 25 Dec 2025

 

-

 

 

50,104

 

 

 

Fhlmc Multifamily Structured P Fhms K057 A2

 

2.57% 25 Jul 2026

 

-

 

 

101,871

 

 

 

Fhlmc Multifamily Structured P Fhms K058 A2

 

2.65% 25 Aug 2026

 

-

 

 

19,496

 

 

 

Fhlmc Multifamily Structured P Fhms K061 A2

 

3.35% 25 Nov 2026

 

-

 

 

61,539

 

 

 

Fhlmc Multifamily Structured P Fhms K062 A2

 

3.41% 25 Dec 2026

 

-

 

 

46,358

 

 

 

Fhlmc Multifamily Structured P Fhms K063 A2

 

3.43% 25 Jan 2027

 

-

 

 

51,572

 

 

 

Fhlmc Multifamily Structured P Fhms K725 A2

 

3.0% 25 Jan 2024

 

-

 

 

70,577

 

 

 

Fhlmc Multifamily Structured P Fhms K727 A2

 

2.95% 25 Jul 2024

 

-

 

 

110,455

 

 

 

Fhlmc Multifamily Structured P Fhms Kplb A

 

2.77% 25 May 2025

 

-

 

 

68,836

 

 

 

Ford Motor Credit Co Llc Sr Unsecured

 

5.75% 01 Feb 2021

 

-

 

 

321,278

 

 

 

Ford Motor Credit Co Llc Sr Unsecured

 

5% 15 May 2018

 

-

 

 

388,615

 

 

 

Freeport Mcmoran Inc Company Guar

 

2.38% 15 Mar 2018

 

-

 

 

73,888

 

 

 

Freeport Mcmoran Inc Company Guar

 

6.88% 15 Feb 2023

 

-

 

 

220,413

 

 

 

Frontier Communications Sr Unsecured

 

7.88% 15 Jan 2027

 

-

 

 

43,328

 

 

 

Gamestop Corp Company Guar 144A

 

5.5% 01 Oct 2019

 

-

 

 

140,341

 

 

20

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

General Motors Co Sr Unsecured

 

5% 01 Apr 2035

 

-

 

 

287,466

 

 

 

General Motors Co Sr Unsecured

 

5.2% 01 Apr 2045

 

-

 

 

10,423

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

6.15% 01 Apr 2018

 

-

 

 

194,374

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

5.25% 27 Jul 2021

 

-

 

 

192,431

 

 

 

Goldman Sachs Group Inc Subordinated

 

6.75% 01 Oct 2037

 

-

 

 

26,409

 

 

 

Gp Portfolio Trust Gppt 2014 Gpp D 144A

 

4.48% 15 Feb 2027

 

-

 

 

177,978

 

 

 

Grupo Televisa Sab Sr Unsecured

 

7.25% 14 May 2043

 

-

 

 

76,401

 

 

 

Gs Mortgage Securities Trust Gsms 2011 Gc5 C 144A

 

5.4% 10 Aug 2044

 

-

 

 

62,469

 

 

 

Hologic Inc Company Guar 144A

 

4.38% 15 Oct 2025

 

-

 

 

15,018

 

 

 

Hp Enterprise Co Sr Unsecured

 

3.6% 15 Oct 2020

 

-

 

 

135,961

 

 

 

Hp Enterprise Co Sr Unsecured

 

6.2% 15 Oct 2035

 

-

 

 

166,097

 

 

 

Hyundai Capital America Sr Unsecured 144A

 

3% 30 Oct 2020

 

-

 

 

196,964

 

 

 

Infraestructura Energeti Sr Unsecured 144A

 

4.88% 14 Jan 2048

 

-

 

 

189,637

 

 

 

Intl Lease Finance Corp Sr Unsecured

 

6.25% 15 May 2019

 

-

 

 

423,801

 

 

 

Intl Lease Finance Corp Sr Unsecured

 

5.88% 01 Apr 2019

 

-

 

 

71,866

 

 

 

Istar Inc Sr Unsecured

 

5% 01 Jul 2019

 

-

 

 

89,221

 

 

 

Istar Inc Sr Unsecured

 

6.5% 01 Jul 2021

 

-

 

 

46,108

 

 

 

Jp Morgan Chase Commercial Mor Jpmcc 2014 Fl5 B 144A

 

2.83% 15 Jul 2031

 

-

 

 

58,687

 

 

 

Jp Morgan Chase Commercial Mor Jpmcc 2014 Fl5 C 144A

 

3.58% 15 Jul 2031

 

-

 

 

97,971

 

 

 

Jpmorgan Chase + Co Sr Unsecured

 

4.63% 10 May 2021

 

-

 

 

100,050

 

 

 

Jpmorgan Chase + Co Sr Unsecured

 

4.5% 24 Jan 2022

 

-

 

 

258,599

 

 

 

Jpmorgan Chase + Co Sr Unsecured

 

2.55% 29 Oct 2020

 

-

 

 

29,679

 

 

 

Jpmorgan Chase + Co Sr Unsecured

 

2.7% 18 May 2023

 

-

 

 

58,796

 

 

 

Kinder Morgan Ener Part Company Guar

 

4.3% 01 May 2024

 

-

 

 

133,511

 

 

 

Kinder Morgan Ener Part Company Guar

 

3.5% 01 Sep 2023

 

-

 

 

88,834

 

 

 

Kinder Morgan Ener Part Company Guar

 

4.15% 01 Feb 2024

 

-

 

 

117,647

 

 

 

Kindred Healthcare Inc Company Guar

 

8% 15 Jan 2020

 

-

 

 

117,560

 

 

 

Kla Tencor Corp Sr Unsecured

 

3.38% 01 Nov 2019

 

-

 

 

70,187

 

 

 

Koppers Inc Company Guar 144A

 

6% 15 Feb 2025

 

-

 

 

36,596

 

 

 

Lloyds Banking Group Plc Sr Unsecured

 

3.1% 06 Jul 2021

 

-

 

 

199,272

 

 

 

Mattel Inc Company Guar 144A

 

6.75% 31 Dec 2025

 

-

 

 

74,976

 

 

 

Methanex Corp Sr Unsecured

 

3.25% 15 Dec 2019

 

-

 

 

158,530

 

 

 

Mexichem Sab De Cv Company Guar 144A

 

6.75% 19 Sep 2042

 

-

 

 

249,561

 

 

 

Mill City Mortgage Trust Mcmlt 2015 2 A1 144A

 

3% 25 Sep 2057

 

-

 

 

53,603

 

 

 

Mill City Mortgage Trust Mcmlt 2016 1 A1 144A

 

2.5% 25 Apr 2057

 

-

 

 

69,588

 

 

 

Molex Electronics Tech Sr Unsecured 144A

 

2.88% 15 Apr 2020

 

-

 

 

69,064

 

 

 

Molex Electronics Tech Sr Unsecured 144A

 

3.9% 15 Apr 2025

 

-

 

 

75,434

 

 

 

Morgan Stanley Sr Unsecured

 

5.5% 26 Jan 2020

 

-

 

 

172,475

 

 

 

Morgan Stanley Sr Unsecured

 

2.65% 27 Jan 2020

 

-

 

 

222,944

 

 

 

Morgan Stanley Sr Unsecured

 

2.8% 16 Jun 2020

 

-

 

 

39,812

 

 

 

Morgan Stanley Sr Unsecured

 

3.7% 23 Oct 2024

 

-

 

 

208,953

 

 

 

Myriad Intl Holdings Bv Company Guar 144A

 

6% 18 Jul 2020

 

-

 

 

264,743

 

 

 

Myriad Intl Holdings Bv Company Guar 144A

 

4.85% 06 Jul 2027

 

-

 

 

204,564

 

 

 

Nabors Industries Inc Company Guar

 

5.1% 15 Sep 2023

 

-

 

 

230,573

 

 

 

Nabors Industries Inc Company Guar

 

5.5% 15 Jan 2023

 

-

 

 

47,841

 

 

 

National Rural Util Coop Subordinated 04/43 Var

 

4.75% 30 Apr 2043

 

-

 

 

154,923

 

 

 

Navient Corp Sr Unsecured

 

4.875% 17 Jun 2019

 

-

 

 

115,354

 

 

21

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Navient Corp Sr Unsecured

 

6.125% 25 Mar 2024

 

-

 

 

24,968

 

 

 

Newfield Exploration Co Sr Unsecured

 

5.75% 30 Jan 2022

 

-

 

 

168,478

 

 

 

Ooredoo Intl Finance Company Guar 144A

 

3.25% 21 Feb 2023

 

-

 

 

195,009

 

 

 

Owens Corning Company Guar

 

4.2% 01 Dec 2024

 

-

 

 

103,343

 

 

 

Perkinelmer Inc Sr Unsecured

 

5% 15 Nov 2021

 

-

 

 

116,982

 

 

 

Pertamina Persero Pt Sr Unsecured 144A

 

5.625% 20 May 2043

 

-

 

 

219,969

 

 

 

Petrobras Global Finance Company Guar

 

5.625% 20 May 2043

 

-

 

 

96,964

 

 

 

Petrobras Global Finance Company Guar

 

6.85% 31 Dec 2099

 

-

 

 

218,366

 

 

 

Post Holdings Inc Company Guar 144A

 

5.625% 15 Jan 2028

 

-

 

 

118,996

 

 

 

Qep Resources Inc Sr Unsecured

 

5.25% 01 May 2023

 

-

 

 

169,678

 

 

 

Quicken Loans Inc Company Guar 144A

 

5.75% 01 May 2025

 

-

 

 

137,827

 

 

 

Radian Group Inc Sr Unsecured

 

4.5% 01 Oct 2024

 

-

 

 

60,634

 

 

 

Range Resources Corp Company Guar

 

4.875% 15 May 2025

 

-

 

 

95,188

 

 

 

Rowan Companies Inc Company Guar

 

7.375% 15 Jun 2025

 

-

 

 

195,716

 

 

 

Rpm International Inc Sr Unsecured

 

6.125% 15 Oct 2019

 

-

 

 

139,685

 

 

 

Saci Falabella Sr Unsecured 144A

 

3.75% 30 Apr 2023

 

-

 

 

202,033

 

 

 

Santander Drive Auto Receivabl Sdart 2016 2 C

 

2.66% 15 Nov 2021

 

-

 

 

237,493

 

 

 

Santander Drive Auto Receivabl Sdart 2017 2 B

 

2.21% 15 Oct 2021

 

-

 

 

14,788

 

 

 

Sm Energy Co Sr Unsecured

 

6.5% 01 Jan 2023

 

-

 

 

176,074

 

 

 

Sm Energy Co Sr Unsecured

 

5.625% 01 Jun 2025

 

-

 

 

90,897

 

 

 

Sm Energy Co Sr Unsecured

 

6.75% 15 Sep 2026

 

-

 

 

10,160

 

 

 

Southern Copper Corp Sr Unsecured

 

5.875% 23 Apr 2045

 

-

 

 

190,627

 

 

 

Springleaf Finance Corp Company Guar

 

5.25% 15 Dec 2019

 

-

 

 

253,692

 

 

 

Sprint Capital Corp Company Guar

 

6.875% 15 Nov 2028

 

-

 

 

168,737

 

 

 

Starwood Property Trust Sr Unsecured 144A

 

4.75% 15 Mar 2025

 

-

 

 

122,376

 

 

 

Telefonica Emisiones Sau Company Guar

 

5.134% 27 Apr 2020

 

-

 

 

156,633

 

 

 

Telefonica Emisiones Sau Company Guar

 

5.462% 16 Feb 2021

 

-

 

 

160,051

 

 

 

Thai Oil Pcl Sr Unsecured 144A

 

4.875% 23 Jan 2043

 

-

 

 

215,738

 

 

 

Time Warner Cable Llc Sr Secured

 

0.05875 15 Nov 2040

 

-

 

 

37,459

 

 

 

Time Warner Cable Llc Sr Secured

 

5.5% 01 Sep 2041

 

-

 

 

164,499

 

 

 

Time Warner Cable Llc Sr Secured

 

4.5% 15 Sep 2042

 

-

 

 

83,292

 

 

 

Towd Point Mortgage Trust Tpmt 2015 2 1A12 144A

 

2.75% 25 Nov 2060

 

-

 

 

61,204

 

 

 

Towd Point Mortgage Trust Tpmt 2016 2 A1A 144A

 

2.75% 25 Aug 2055

 

-

 

 

94,092

 

 

 

Transelec Sa Sr Unsecured 144A

 

4.625% 26 Jul 2023

 

-

 

 

209,856

 

 

 

Universal Health Svcs Sr Secured 144A

 

3.75% 01 Aug 2019

 

-

 

 

50,122

 

 

 

Universal Health Svcs Sr Secured 144A

 

4.75% 01 Aug 2022

 

-

 

 

105,515

 

 

 

Valeant Pharmaceuticals Company Guar 144A

 

6.375% 15 Oct 2020

 

-

 

 

134,497

 

 

 

Venator Fin Sarl/Venator Company Guar 144A

 

5.75% 15 Jul 2025

 

-

 

 

36,423

 

 

 

Verizon Communications Sr Unsecured

 

2.45% 01 Nov 2022

 

-

 

 

125,697

 

 

 

Verizon Communications Sr Unsecured

 

2.946% 15 Mar 2022

 

-

 

 

14,886

 

 

 

Votorantim Cimentos Sa Company Guar 144A

 

7.25% 05 Apr 2041

 

-

 

 

213,311

 

 

 

Wf Rbs Commercial Mortgage Tru Wfrbs 2011 C4 D 144A

 

5.25% 15 Jun 2044

 

-

 

 

48,456

 

 

 

Whirlpool Corp Sr Unsecured

 

4.7% 01 Jun 2022

 

-

 

 

243,310

 

 

 

Whiting Petroleum Corp Sr Unsecured 144A

 

6.625% 15 Jan 2026

 

-

 

 

115,706

 

 

 

World Financial Network Credit Wfnmt 2012 A A

 

3.14% 17 Jan 2023

 

-

 

 

269,583

 

 

 

Corporate and Other Obligations

 

 

 

-

 

 

21,063,510

 

 

 

Synthetic Guaranteed Investment Contracts:

 

 

 

 

 

 

 

 

 

22

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Cash and Cash Equivalents:

 

 

 

 

 

 

 

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

1,143,150

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

2,688,262

 

 

*

State Street Bank & Trust Co

 

Short-term Investment Fund

 

-

 

 

3,267,823

 

 

 

Australian Dollar

 

Cash

 

-

 

 

21

 

 

 

U.S. Dollar

 

Cash

 

-

 

 

(55

)

 

 

Cash and Cash Equivalents

 

 

 

-

 

 

7,099,202

 

 

 

U.S. Government and Government Agency Issues:

 

 

 

 

 

 

 

 

 

 

Fed Hm Ln Pc Pool 1l 1L1358

 

3.5% 01 May 2036

 

-

 

 

441,106

 

 

 

Fed Hm Ln Pool G01843 FG

 

6% 01 Jun 2035

 

-

 

 

204,561

 

 

 

Fed Hm Ln Pool G03205 FG

 

5.5% 01 Jul 2035

 

-

 

 

37,307

 

 

 

Fed Hm Ln Pool G08749 FG

 

4% 01 Feb 2047

 

-

 

 

405,199

 

 

 

Fed Hm Ln Pool G12743 FG

 

5.5% 01 Aug 2022

 

-

 

 

30,809

 

 

 

Fed Hm Ln Pool G60732 FG

 

4% 01 Feb 2046

 

-

 

 

738,263

 

 

 

Fed Hm Ln Pool G60886 FG

 

4% 01 Jul 2044

 

-

 

 

573,698

 

 

 

Fed Hm Ln Pool J16933 FG

 

3% 01 Oct 2026

 

-

 

 

14,905

 

 

 

Fed Hm Ln Pool Q03572 FG

 

4% 01 Sep 2041

 

-

 

 

1,098,725

 

 

 

Fed Hm Ln Pool Q11095 FG

 

3.5% 01 Sep 2042

 

-

 

 

1,579,514

 

 

 

Fed Hm Ln Pool Q39715 FG

 

3.5% 01 Apr 2046

 

-

 

 

177,824

 

 

 

Fed Hm Ln Pool Q43369 FG

 

3.5% 01 Oct 2046

 

-

 

 

346,730

 

 

 

Fed Hm Ln Pool Q46343 FG

 

4% 01 Feb 2047

 

-

 

 

372,981

 

 

 

Fed Hm Ln Pool Q51345 FG

 

3.5% 01 Oct 2047

 

-

 

 

153,004

 

 

 

Fed Hm Ln Pool U92432 FG

 

4% 01 Feb 2044

 

-

 

 

243,749

 

 

 

Fed Hm Ln Pool V82290 FG

 

4% 01 Apr 2046

 

-

 

 

371,129

 

 

 

Fed Home Ln Discount nt Discount Not

 

0.01% 05 Jan 2018

 

-

 

 

5,288,529

 

 

 

Fed Home Ln Discount nt Discount Not

 

0.01% 14 Feb 2018

 

-

 

 

4,164,308

 

 

 

Fed Home Ln Discount nt Discount Not

 

0.01% 16 Feb 2018

 

-

 

 

6,236,640

 

 

 

Fed Home Ln Discount nt Discount Not

 

0.01% 21 Feb 2018

 

-

 

 

5,764,710

 

 

 

Fed Home Ln Discount nt Discount Not

 

0.01% 09 Mar 2018

 

-

 

 

1,925,207

 

 

 

Fnma Pool 254693 Fn

 

5.5% 01 Apr 2033

 

-

 

 

69,973

 

 

 

Fnma Pool 725222 Fn

 

5.5% 01 Feb 2034

 

-

 

 

84,750

 

 

 

Fnma Pool 725423 Fn

 

5.5% 01 May 2034

 

-

 

 

65,481

 

 

 

Fnma Pool 725424 Fn

 

5.5% 01 Apr 2034

 

-

 

 

29,047

 

 

 

Fnma Pool 725690 Fn

 

6% 01 Aug 2034

 

-

 

 

27,544

 

 

 

Fnma Pool 725946 Fn

 

5.5% 01 Nov 2034

 

-

 

 

74,790

 

 

 

Fnma Pool 743132 Fn

 

5% 01 Oct 2018

 

-

 

 

16,045

 

 

 

Fnma Pool 914789 Fn

 

3.45% 01 Apr 20137

 

-

 

 

437,395

 

 

 

Fnma Pool 931745 Fn

 

5% 01 Aug 2024

 

-

 

 

567,538

 

 

 

Fnma Pool 986148 Fn

 

5.5% 01 Jan 2038

 

-

 

 

558,756

 

 

 

Fnma Pool AB5519 Fn

 

3.5% 01 Jul 2042

 

-

 

 

1,146,915

 

 

 

Fnma Pool AB5688 Fn

 

3.5% 01 Jul 2037

 

-

 

 

362,945

 

 

 

Fnma Pool AB6282 Fn

 

3.5% 01 Sep 2042

 

-

 

 

1,713,276

 

 

 

Fnma Pool AB7016 Fn

 

4% 01 Nov 2042

 

-

 

 

1,084,973

 

 

 

Fnma Pool AB9096 Fn

 

4% 01 Apr 2043

 

-

 

 

707,295

 

 

 

Fnma Pool AE9758 Fn

 

4% 01 Dec 2040

 

-

 

 

340,921

 

 

 

Fnma Pool Al0139 Fn

 

3.4% 01 Feb 2039

 

-

 

 

233,358

 

 

 

Fnma Pool Al9848 Fn

 

3% 01 Mar 2047

 

-

 

 

1,511,521

 

 

23

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Fnma Pool AO4163 Fn

 

3.5% 01 Jun 2042

 

-

 

 

1,113,022

 

 

 

Fnma Pool AO8169 Fn

 

3.5% 01 Sep 2042

 

-

 

 

747,916

 

 

 

Fnma Pool AQ6238 Fn

 

3.5% 01 Dec 2042

 

-

 

 

338,312

 

 

 

Fnma Pool AR4445 Fn

 

3% 01 Mar 2043

 

-

 

 

334,089

 

 

 

Fnma Pool AR9225 Fn

 

3% 01 Mar 2043

 

-

 

 

1,325,615

 

 

 

Fnma Pool AS3867 Fn

 

4% 01 Nov 2044

 

-

 

 

340,158

 

 

 

Fnma Pool AS3955 Fn

 

4% 01 Dec 2044

 

-

 

 

2,618,861

 

 

 

Fnma Pool AS6922 Fn

 

3.5% 01 Apr 2046

 

-

 

 

2,629,302

 

 

 

Fnma Pool AS7023 Fn

 

4% 01 Apr 2046

 

-

 

 

1,370,269

 

 

 

Fnma Pool AS8028 Fn

 

2.5% 01 Sep 2031

 

-

 

 

1,090,043

 

 

 

Fnma Pool AS8483 Fn

 

3% 01 Dec 2046

 

-

 

 

3,920,629

 

 

 

Fnma Pool AU1628 Fn

 

3% 01 Jul 2043

 

-

 

 

1,266,437

 

 

 

Fnma Pool AU6109 Fn

 

4% 01 Sep 2043

 

-

 

 

320,108

 

 

 

Fnma Pool AU6743 Fn

 

4% 01 Oct 2043

 

-

 

 

715,307

 

 

 

Fnma Pool BC5980 Fn

 

3.5% 01 Apr 2046

 

-

 

 

230,808

 

 

 

Fnma Pool BD2440 Fn

 

3.5% 01 Jan 2047

 

-

 

 

1,007,597

 

 

 

Fnma Pool BD6399 Fn

 

3.5% 01 Sep 2046

 

-

 

 

399,587

 

 

 

Fnma Pool BD7074 Fn

 

3% 01 Mar 2047

 

-

 

 

1,470,764

 

 

 

Fnma Pool BD7595 Fn

 

4% 01 Sep 2046

 

-

 

 

242,911

 

 

 

Fnma Pool BD9698 Fn

 

3.5% 01 Dec 2046

 

-

 

 

350,856

 

 

 

Fnma Pool BE0183 Fn

 

3.5% 01 Dec 2046

 

-

 

 

348,428

 

 

 

Fnma Pool BE2929 Fn

 

3.5% 01 Dec 2046

 

-

 

 

675,923

 

 

 

Fnma Pool BE4503 Fn

 

3.5% 01 Dec 2046

 

-

 

 

405,794

 

 

 

Fnma Pool MA1217 Fn

 

4% 01 Oct 2042

 

-

 

 

688,931

 

 

 

Fnma Pool MA1404 Fn

 

3.5% 01 Apr 2043

 

-

 

 

719,109

 

 

 

Fnma Pool MA2994 Fn

 

3.5% 01 May 2047

 

-

 

 

1,465,117

 

 

 

Fnma Tba 30 Yr 3.5 Single Family Mortgage

 

3.5% 18 Jan 2048

 

-

 

 

2,117,855

 

 

 

Fnma Tba 30 Yr 4 Single Family Mortgage

 

4% 18 Jan 2048

 

-

 

 

2,164,134

 

 

 

Fnma Tba 30 Yr 4.5 Single Family Mortgage

 

4.5% 18 Jan 2048

 

-

 

 

4,214,011

 

 

 

Fnma Tba 30 Yr 4.5 Single Family Mortgage

 

4.5% 13 Mar 2048

 

-

 

 

(1,681,148

)

 

 

Futures Cash Collateral Usd Held At Broker

 

 

 

-

 

 

127,076

 

 

 

Gnma Ii TBA 30Yr 3.5 Jumbos

 

3.5% 24 Jan 2048

 

-

 

 

1,197,026

 

 

 

New Jersey St Econ Dev Auth Re Njsdev

 

4.447% 15 Jun 2020

 

-

 

 

705,221

 

 

 

North Carolina State Education Ncsea 2011 2 A2

 

2.17% 25 Jul 2025

 

-

 

 

729,835

 

 

 

Ontario (Province Of) Sr Unsecured

 

4% 07 Oct 2019

 

-

 

 

1,900,630

 

 

 

Republic of Indonesia Sr Unsecured 144A

 

3.85% 18 Jul 2027

 

-

 

 

232,005

 

 

 

Republic Of Poland Sr Unsecured

 

6.375% 15 Jul 2019

 

-

 

 

40,812

 

 

 

Republica Orient Uruguay Sr Unsecured

 

4.375% 27 Oct 2027

 

-

 

 

448,374

 

 

 

Slm Student Loan Trust Slma 2012 7 A2

 

1.61% 25 Sep 2019

 

-

 

 

52,704

 

 

 

Tsy Infl Ix N/B

 

0.125% 15 Apr 2019

 

-

 

 

2,213,681

 

 

 

Tsy Infl Ix N/B

 

0.25% 15 Jan 2025

 

-

 

 

1,622,472

 

 

 

Tsy Infl Ix N/B

 

0.125% 15 Apr 2020

 

-

 

 

738,608

 

 

 

Tsy Infl Ix N/B

 

0.125% 15 Apr 2021

 

-

 

 

10,141,144

 

 

 

Tsy Infl IX Ts

 

0.375% 15 Jul 2025

 

-

 

 

2,247,127

 

 

 

United Mexican States Sr Unsecured

 

4.125% 21 Jan 2026

 

-

 

 

244,843

 

 

 

Us Treasury Frn

 

1.5103% 31 Jul 2019

 

-

 

 

3,852,566

 

 

 

Us Treasury N/B

 

1.88% 31 Jul 2022

 

-

 

 

5,165,286

 

 

24

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Us Treasury N/B

 

2.25% 15 Aug 2027

 

-

 

 

4,711,846

 

 

 

Us Treasury N/B

 

1.63% 31 Aug 2022

 

-

 

 

4,332,320

 

 

 

Us Treasury N/B

 

1.38% 15 Sep 2020

 

-

 

 

2,239,225

 

 

 

Us Treasury N/B

 

1.63% 15 Oct 2020

 

-

 

 

2,241,931

 

 

 

Us Treasury N/B

 

2% 31 Oct 2022

 

-

 

 

7,471,100

 

 

 

Us Treasury N/B

 

2% 30 Nov 2022

 

-

 

 

2,179,404

 

 

 

Us Treasury N/B

 

1.75% 31 May 2022

 

-

 

 

5,509,161

 

 

 

Us Treasury N/B

 

5.5% 15 Aug 2028

 

-

 

 

2,011,058

 

 

 

Us Treasury N/B

 

5.25% 15 Feb 2029

 

-

 

 

1,748,019

 

 

 

Us Treasury N/B

 

5.375% 15 Feb 2031

 

-

 

 

818,527

 

 

 

Us Treasury N/B

 

1.5% 31 Oct 2020

 

-

 

 

11,959,648

 

 

 

Us Treasury N/B

 

1.375% 31 Oct 2020

 

-

 

 

1,820,740

 

 

 

Us Treasury N/B

 

1% 31 Dec 2017

 

-

 

 

1,179,121

 

 

 

Us Treasury N/B

 

1.25% 31 Mar 2021

 

-

 

 

7,143,123

 

 

 

Us Treasury N/B

 

0.875% 31 Mar 2018

 

-

 

 

605,648

 

 

 

Us Treasury N/B

 

1.625% 15 May 2026

 

-

 

 

372,975

 

 

 

Us Treasury N/B

 

1.125% 30 Jun 2021

 

-

 

 

1,267,002

 

 

 

Us Treasury N/B

 

1.25% 30 Apr 2019

 

-

 

 

1,600,438

 

 

 

Us Treasury N/B

 

1.125% 30 Sep 2021

 

-

 

 

2,629,745

 

 

 

Us Treasury N/B

 

1.75% 30 Nov 2021

 

-

 

 

2,303,811

 

 

 

Us Treasury N/B

 

0.75% 31 Dec 2017

 

-

 

 

2,271,614

 

 

 

Us Treasury N/B

 

1.125% 31 Jan 2019

 

-

 

 

4,418,830

 

 

 

Us Treasury N/B

 

1.125% 28 Feb 2019

 

-

 

 

3,346,056

 

 

 

Us Treasury N/B

 

1.75% 31 May 2022

 

-

 

 

1,552,969

 

 

 

Us Treasury N/B

 

1.75% 30 Jun 2022

 

-

 

 

1,252,310

 

 

 

Us Treasury N/B

 

1.625% 31 Aug 2022

 

-

 

 

3,459,285

 

 

 

Us Treasury N/B

 

1.875% 30 Sep 2022

 

-

 

 

13,119,120

 

 

 

Us Treasury N/B

 

1.375% 30 Sep 2019

 

-

 

 

7,452,604

 

 

 

Us Treasury N/B

 

1.625% 15 Oct 2020

 

-

 

 

16,213,451

 

 

 

Us Treasury N/B

 

1.75% 15 Nov 2020

 

-

 

 

4,115,190

 

 

 

Us Treasury N/B

 

1.5% 31 Oct 2019

 

-

 

 

11,676,692

 

 

 

Us Treasury N/B

 

0.75% 31 Oct 2018

 

-

 

 

4,209,850

 

 

 

Us Treasury N/B

 

1% 30 Nov 2019

 

-

 

 

4,425,910

 

 

 

U.S. Government and Government Agency Issues

 

 

 

-

 

 

245,470,301

 

 

 

Corporate and Other Obligations:

 

 

 

 

 

 

 

 

 

 

21St Century Fox America Company Guar

 

4.5% 15 Feb 2021

 

-

 

 

391,675

 

 

 

Abbott Laboratories Sr Unsecured

 

2.9% 30 Nov 2021

 

-

 

 

632,899

 

 

 

Abbvie Inc Sr Unsecured

 

2.5% 14 May 2020

 

-

 

 

77,241

 

 

 

Abbvie Inc Sr Unsecured

 

3.2% 14 May 2026

 

-

 

 

393,478

 

 

 

Abn Amro Bank Nv Sr Unsecured 144A

 

2.5% 30 Oct 2018

 

-

 

 

531,200

 

 

 

Aig Global Funding Sr Secured 144A

 

1.95% 18 Oct 2019

 

-

 

 

443,716

 

 

 

Alexandria Real Estate E Company Guar

 

4.6% 01 Apr 2022

 

-

 

 

378,181

 

 

 

Alfa S.A. Sr Unsecured 144A

 

5.25% 25 Mar 2024

 

-

 

 

239,205

 

 

 

Alibaba Group Holding Sr Unsecured

 

2.5% 28 Nov 2019

 

-

 

 

390,968

 

 

 

Alibaba Group Holding Sr Unsecured

 

2.8% 06 Jun 2023

 

-

 

 

215,957

 

 

 

Ally Auto Receivables Trust Allya 2015 2 A3

 

1.49% 15 Nov 2019

 

-

 

 

151,443

 

 

 

Ally Master Owner Trust Amot 2015 3 A

 

1.63% 15 May 2020

 

-

 

 

615,606

 

 

25

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Altria Group Inc Company Guar

 

2.63% 14 Jan 2020

 

-

 

 

455,314

 

 

 

Amazon.Com Inc Sr Unsecured 144A

 

2.4% 22 Feb 2023

 

-

 

 

342,920

 

 

 

American Electric Power Sr Unsecured

 

3.2% 13 Nov 2027

 

-

 

 

296,269

 

 

 

American Express Co Sr Unsecured

 

2.2% 30 Oct 2020

 

-

 

 

763,721

 

 

 

American Express Credit Sr Unsecured

 

2.6% 14 Sep 2020

 

-

 

 

778,351

 

 

 

American Financial Group Sr Unsecured

 

3.5% 15 Aug 2026

 

-

 

 

367,269

 

 

 

American Honda Finance Sr Unsecured

 

2% 14 Feb 2020

 

-

 

 

383,047

 

 

 

American Intl Group Sr Unsecured

 

6.4% 15 Dec 2020

 

-

 

 

907,034

 

 

 

American Tower Corp Sr Unsecured

 

3.6% 15 Jan 2028

 

-

 

 

521,504

 

 

 

American Tower Corp Sr Unsecured

 

3% 15 Jun 2023

 

-

 

 

681,619

 

 

 

Americredit Automobile Receiva Amcar 2015 2 A3

 

1.27% 08 Jan 2020

 

-

 

 

112,694

 

 

 

Americredit Automobile Receiva Amcar 2016 4 A2A

 

1.34% 08 Apr 2020

 

-

 

 

270,373

 

 

 

Americredit Automobile Receiva Amcar 2017 1 A3

 

1.87% 18 Aug 2021

 

-

 

 

91,149

 

 

 

Amgen Inc Sr Unsecured

 

2.2% 22 May 2019

 

-

 

 

67,392

 

 

 

Amgen Inc Sr Unsecured

 

2.65% 11 May 2022

 

-

 

 

839,963

 

 

 

Amgen Inc Unsecured

 

3.2% 02 Nov 2027

 

-

 

 

533,553

 

 

 

Anheuser Busch Cos Llc Company Guar

 

5% 01 Mar 2019

 

-

 

 

29,782

 

 

 

Anheuser Busch Inbev Fin Company Guar

 

3.65% 01 Feb 2026

 

-

 

 

744,996

 

 

 

Apple Inc Sr Unsecured

 

2.25% 23 Feb 2021

 

-

 

 

115,371

 

 

 

Aptiv Plc Company Guar

 

3.15% 19 nov 2020

 

-

 

 

73,306

 

 

 

At+t Inc Sr Unsecured

 

4.45% 01 Apr 2024

 

-

 

 

243,349

 

 

 

At+t Inc Sr Unsecured

 

3.9% 14 Aug 2027

 

-

 

 

1,191,845

 

 

 

At+T Inc Sr Unsecured

 

3.2% 01 Mar 2022

 

-

 

 

374,580

 

 

 

Athene Global Funding Secured 144A

 

3% 01 Jul 2022

 

-

 

 

457,298

 

 

 

Athene Global Funding Secured 144A

 

2.75% 20 Apr 2020

 

-

 

 

486,332

 

 

 

Aust + Nz Banking Grp Ny Sr Unsecured

 

2.63% 09 Nov 2022

 

-

 

 

401,630

 

 

 

Autonation Inc Company Guar

 

3.5% 15 Nov 2024

 

-

 

 

533,156

 

 

 

Avalonbay Communities Sr Unsecured

 

3.2% 15 Jan 2028

 

-

 

 

167,800

 

 

 

Baker Hughes Llc/Co Obl Sr Unsecured 144A

 

2.77% 15 Dec 2022

 

-

 

 

648,905

 

 

 

Banc Of America Commercial Mor Bacm 2017 Bnk3 A2

 

3.12% 15 Feb 2050

 

-

 

 

620,788

 

 

 

Banco Santander Sa Sr Unsecured

 

3.5% 11 Apr 2022

 

-

 

 

196,292

 

 

 

Bank Of America Corp Sr Unsecured

 

2.37% 21 Jul 2021

 

-

 

 

754,277

 

 

 

Bank Of America Corp Sr Unsecured

 

3.82% 20 Jan 2028

 

-

 

 

393,274

 

 

 

Bank Of America Corp Sr Unsecured

 

2.88% 24 Apr 2023

 

-

 

 

385,585

 

 

 

Bank Of America Corp Sr Unsecured

 

2.503% 21 Oct 2022

 

-

 

 

557,100

 

 

 

Bank Of America Corp Sr Unsecured

 

2.151% 09 Nov 2020

 

-

 

 

450,326

 

 

 

Bank Of America Corp Sr Unsecured

 

2.39917% 15 Jan 2019

 

-

 

 

960,832

 

 

 

Bank Of America Corp Subordinated

 

4.2% 26 Aug 2024

 

-

 

 

247,326

 

 

 

Bank Of America Credit Card Tr Bacct 2014 A1 A

 

1.86% 15 Jun 2021

 

-

 

 

501,923

 

 

 

Bank Of Montreal Sr Unsecured

 

2.1% 12 Dec 2019

 

-

 

 

302,362

 

 

 

Bank Of Ny Mellon Corp Sr Unsecured

 

2.66% 16 May 2023

 

-

 

 

779,247

 

 

 

Bank Of The West Auto Trust Bwsta 2015 1 A3 144A

 

1.31% 15 Oct 2019

 

-

 

 

135,874

 

 

 

Bank Of The West Auto Trust Bwsta 2017 1A3 144A

 

2.11% 15 Jan 2023

 

-

 

 

239,354

 

 

 

Barclays Commercial Mortgage S Bbcms 2017 C1 A2

 

3.19% 15 Feb 2050

 

-

 

 

520,278

 

 

 

Barclays Dryrock Issuance Trus Drock 2014 3 A

 

2.41% 15 Jul 2022

 

-

 

 

1,015,239

 

 

 

Barclays Dryrock Issuance Trus Drock 2015 1 A

 

2.2% 15 Dec 2022

 

-

 

 

626,108

 

 

 

Barclays Dryrock Issuance Trus Drock 2015 4 A

 

1.72% 16 Aug 2021

 

-

 

 

312,369

 

 

26

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Barclays Plc Sr Unsecured

 

3.68% 10 Jan 2023

 

-

 

 

317,451

 

 

 

Barrick Na Finance Llc Company Guar

 

4.4% 30 May 2021

 

-

 

 

81,509

 

 

*

Baxalta Inc Company Guar

 

3.6% 23 Jun 2022

 

-

 

 

359,320

 

 

 

Bb Ubs Trust Bbubs 2012 Tft A 144A

 

2.89% 05 Jun 2030

 

-

 

 

549,040

 

 

 

Bb+T Corporation Sr Unsecured

 

2.15% 01 Feb 2021

 

-

 

 

514,859

 

 

 

Becton Dickinson And Co Sr Unsecured

 

2.68% 15 Dec 2019

 

-

 

 

246,337

 

 

 

Biogen Inc Sr Unsecured

 

3.63% 15 Sep 2022

 

-

 

 

205,493

 

 

 

Bmw Floorplan Master Owner Tru Bmwft 2015 1A A 144A

 

1.98% 15 Jul 2020

 

-

 

 

466,847

 

 

 

Boeing Co Sr Unsecured

 

2.125% 01 Mar 2022

 

-

 

 

1,025,960

 

 

 

Boston Properties Lp Sr Unsecured

 

4.125% 15 May 2022

 

-

 

 

352,104

 

 

 

Bp Capital Markets Plc Company Guar

 

3.28% 19 Sep 2027

 

-

 

 

545,652

 

 

 

Branch Banking + Trust Sr Unsecured

 

2.625% 15 Jan 2022

 

-

 

 

867,929

 

 

 

Brighthouse Financial In Sr Unsecured 144A

 

3.7% 22 Jun 2027

 

-

 

 

265,058

 

 

 

Brixmor Operating Part Sr Unsecured

 

3.65% 15 Jun 2024

 

-

 

 

402,159

 

 

 

Broadcom Crp /  Caymn Fi Company Guar 144A

 

3.88% 15 Jan 2027

 

-

 

 

167,653

 

 

 

Broadcom Crp /  Caymn Fi Company Guar 144A

 

3.63% 15 Jan 2024

 

-

 

 

76,571

 

 

 

Buckeye Partners Lp Sr Unsecured

 

3.95% 01 Dec 2026

 

-

 

 

47,305

 

 

 

Buckeye Partners Lp Sr Unsecured

 

4.13% 01 Dec 2027

 

-

 

 

304,577

 

 

 

Bx Trust Bx 2017 Imc A 144A

 

2.3% 15 Oct 2032

 

-

 

 

274,756

 

 

 

Capital One Financial Co Sr Unsecured

 

2.5% 12 May 2020

 

-

 

 

538,352

 

 

 

Capital One Financial Co Sr Unsecured

 

3.3% 30 Oct 2024

 

-

 

 

746,847

 

 

 

Capital One Financial Co Sr Unsecured

 

3.3%30 Oct 2024

 

-

 

 

368,636

 

 

 

Capital One Financial Co Sr Unsecured

 

3.05% 09 Mar 2022

 

-

 

 

799,667

 

 

 

Capital One Multi Asset Execut Comet 2015 A5 A5

 

1.6% 17 May 2021

 

-

 

 

543,304

 

 

 

Capital One Multi Asset Execut Comet 2016 A5 A5

 

1.66% 17 Jun 2024

 

-

 

 

1,079,078

 

 

 

Capital One Multi Asset Execut Comet A5 A5

 

2% 17 Jan 2023

 

-

 

 

650,498

 

 

 

Capital One Na Sr Unsecured

 

2.4% 05 Sep 2019

 

-

 

 

398,920

 

 

 

Carmax Auto Owner Trust Carmx 2015 4 A3

 

1.56% 16 Nov 2020

 

-

 

 

314,408

 

 

 

Carmax Auto Owner Trust Carmx 2017 2 A3

 

1.93% 15 Mar 2022

 

-

 

 

574,361

 

 

 

Carmax Auto Owner Trust Carmx 2017 2 A4

 

2.25% 15 Sep 2022

 

-

 

 

1,015,982

 

 

 

Carmax Auto Owner Trust Carmx 2017 4 A3

 

2.11% 17 Oct 2022

 

-

 

 

143,673

 

 

 

Carmax Auto Owner Trust Carmx 2017 4 A4

 

2.33% 15 May 2023

 

-

 

 

286,953

 

 

 

Caterpillar Finl Service Sr Unsecured

 

2.55% 29 Nov 2022

 

-

 

 

743,588

 

 

 

Caterpillar Finl Service Sr Unsecured

 

2.4% 06 Jun 2022

 

-

 

 

272,653

 

 

 

Celgene Corp Sr Unsecured

 

3.88% 15 Aug 2025

 

-

 

 

353,694

 

 

 

Centerpoint Energy Resou Sr Unsecured

 

4.5% 15 Jan 2021

 

-

 

 

100,672

 

 

 

Cfcre Commercial Mortgage Trus Cfcre 2016 C4 A4

 

3.28% 10 May 2058

 

-

 

 

752,342

 

 

 

Charles Schwab Corp Sr Unsecured

 

3.2% 25 Jan 2028

 

-

 

 

525,413

 

 

 

Charter Comm Opt Llc/Cap Sr Secured

 

4.91% 23 Jul 2025

 

-

 

 

276,309

 

 

 

Charter Comm Opt Llc/Cap Sr Secured

 

4.91% 23 Jul 2025

 

-

 

 

368,412

 

 

 

Chase Issuance Trust Chait 2014 A2 A2

 

2.77% 15 Mar 2023

 

-

 

 

468,804

 

 

 

Chase Issuance Trust Chait 2016 A3 A3

 

2.03% 15 Jun 2023

 

-

 

 

1,207,081

 

 

 

Chase Issuance Trust Chait 2016 A4 A4

 

1.49% 15 Jul 2022

 

-

 

 

1,191,929

 

 

 

Chrysler Capital Auto Receivab Ccart 2015 Ba A3 144A

 

1.91% 16 Mar 2020

 

-

 

 

144,216

 

 

 

Chrysler Capital Auto Receivab Ccart 2016 Aa A3 144A

 

1.77% 15 Oct 2020

 

-

 

 

307,383

 

 

 

Chubb Ina Holdings Inc Company Guar

 

2.7% 13 Mar 2023

 

-

 

 

4,781

 

 

 

Church + Dwight Co Inc Sr Unsecured

 

2.45% 01 Aug 2022

 

-

 

 

80,815

 

 

27

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Citibank Credit Card Issuance Cccit 2014 A1 A1

 

2.88% 23 Jan 2023

 

-

 

 

896,547

 

 

 

Citigroup Commercial Mortgage Cgcmt 2015 Gc27 A5

 

3.14% 10 Feb 2048

 

-

 

 

440,736

 

 

 

Citigroup Commercial Mortgage Cgcmt 2016 C1 A4

 

3.21% 10 May 2049

 

-

 

 

639,758

 

 

 

Citigroup Inc Sr Unsecured

 

2.9% 08 Dec 2021

 

-

 

 

208,310

 

 

 

Citigroup Inc Sr Unsecured

 

2.75% 25 Apr 2022

 

-

 

 

384,240

 

 

 

Citigroup Inc Sr Unsecured

 

3.67% 24 Jul 2028

 

-

 

 

268,552

 

 

 

Citigroup Inc Sr Unsecured

 

2.65% 26 Oct 2020

 

-

 

 

511,858

 

 

 

Citigroup Inc Subordinated

 

3.88% 26 Mar 2025

 

-

 

 

660,158

 

 

 

Citizens Bank Na/Ri Sr Unsecured

 

2.25% 02 Mar 2020

 

-

 

 

680,155

 

 

 

Citizens Financial Group Sr Unsecured

 

2.375% 28 Jul 2021

 

-

 

 

755,209

 

 

 

Citrix Systems Inc Sr Unsecured

 

4.5% 01 Dec 2027

 

-

 

 

547,058

 

 

 

Cnh Equipment Trust Cnh 2015 A A4

 

1.85% 15 Apr 2021

 

-

 

 

318,762

 

 

 

Cnh Equipment Trust Cnh 2017 B A3

 

1.86% 15 Sepn 2022

 

-

 

 

272,213

 

 

 

Codelco Inc Sr Unsecured 144A

 

3.63% 01 Aug 2027

 

-

 

 

380,621

 

 

 

Comerica Bank Sr  Unsecured

 

2.5% 02 Jun 2020

 

-

 

 

249,933

 

 

 

Comm Mortgage Trust Comm 2013 Sfs A1 144A

 

1.87% 12 Apr 2035

 

-

 

 

142,403

 

 

 

Comm Mortgage Trust Comm 2014 Ubs3 A4

 

3.82% 10 Jun 2047

 

-

 

 

297,911

 

 

 

Comm Mortgage Trust Comm 2014 Ubs3 A5

 

3.82% 10 Jun 2047

 

-

 

 

540,280

 

 

 

Comm Mortgage Trust Comm 2014 Ubs5 A4

 

3.84% 10 Sep 2047

 

-

 

 

511,034

 

 

 

Comm Mortgage Trust Comm 2014 Ubs6 A5

 

3.64% 10 Dec 2047

 

-

 

 

805,167

 

 

 

Comm Mortgage Trust Comm 2015 Cr27 Asb

 

3.4% 10 Oct 2048

 

-

 

 

832,516

 

 

 

Comm Mortgage Trust Comm 2015 Dc1 A5

 

3.35% 10 Feb 2048

 

-

 

 

151,892

 

 

 

Comm Mortgage Trust Comm 2015 Pc1 A5

 

3.9% 10 Jul 2050

 

-

 

 

631,741

 

 

 

Comm Mortgage Trust Comm 2016 Dc2 A5

 

3.77% 10 Feb 2049

 

-

 

 

700,617

 

 

 

Comm Mortgage Trust Comms Comm 2014 UBS2 A5

 

3.96% 10 Mar 2047

 

-

 

 

142,138

 

 

 

Compass Bank Sr Unsecured

 

2.88% 29 Jun 2022

 

-

 

 

376,231

 

 

 

Conagra Brands Inc Sr Unsecured

 

1.86% 09 Oct 2020

 

-

 

 

771,263

 

 

 

Concho Resources Inc Company Guar

 

3.75% 01 Oct 2027

 

-

 

 

214,525

 

 

 

Concho Resources Inc Company Guar

 

3.75% 01 Oct 2027

 

-

 

 

185,272

 

 

 

Consumers Energy Co 1St Mortgage

 

6.125% 15 Mar 2019

 

-

 

 

276,752

 

 

 

Cooperatieve Rabobank Ua Company Guar

 

4.38% 04 Aug 2025

 

-

 

 

411,509

 

 

 

Cox Communications Inc Sr Unsecured 144A

 

3.15% 15 Aug 2024

 

-

 

 

530,879

 

 

 

Cox Communications Inc Sr Unsecured 144A

 

2.95% 30 Jun 2023

 

-

 

 

120,505

 

 

 

Cred Suis Gp Fun Ltd Company Guar

 

2.75% 26 Mar 2020

 

-

 

 

531,466

 

 

 

Cred Suis Gp Fun Ltd Company Guar

 

3.8% 15 Sep 2022

 

-

 

 

913,474

 

 

 

Credit Agricole London Sr Unsecured 144A

 

3.38% 10 Jan 2022

 

-

 

 

327,484

 

 

 

Credit Based Asset Servicing A Cbass 2003 Cb1 Af

 

3.95% 25 Jan 2033

 

-

 

 

62,493

 

 

 

Credit Suisse Mortgage Trust Csmc 2014 Usa A2 144 A

 

3.95% 15 Sep 2037

 

-

 

 

665,512

 

 

 

Csail Commercial Mortgage Trus Csail 2015 C2 A4

 

3.5% 15 Jun 2057

 

-

 

 

116,209

 

 

 

Csail Commercial Mortgage Trus Csail 2015 C3 A4

 

3.72% 15 Aug 2048

 

-

 

 

461,268

 

 

 

Csail Commercial Mortgage Trus Csail 2015 C4 A4

 

3.81% 15 Nov 2048

 

-

 

 

402,511

 

 

 

Csail Commercial Mortgage Trus Csail 2015 C4 Asb

 

3.62% 15 Nov 2048

 

-

 

 

249,448

 

 

 

Cvs Health Corp Sr Unsecured

 

3.88% 20 Jul 2025

 

-

 

 

285,494

 

 

 

Cvs Health Corp Sr Unsecured

 

2.125% 01 Jun 2021

 

-

 

 

347,563

 

 

 

D.R. Horton Inc Company Guar

 

2.55% 01 Dec 2020

 

-

 

 

528,610

 

 

 

Daimler Finance Na Llc Company Guar 144A

 

2.2% 05 May 2020

 

-

 

 

665,172

 

 

 

Dbubs Mortgage Trust Dbubs 2011 Lc2A A4 144A

 

4.54% 10 Jul 2044

 

-

 

 

760,304

 

 

28

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Dell Equipment Finance Trust Deft 2017 2 A3 144A

 

2.19% 24 Oct 2022

 

-

 

 

354,949

 

 

 

Delta Air Lines 2009 1A Passs Thru Ce

 

7.75% 17 Jun 2021

 

-

 

 

239,421

 

 

 

Delta Air Lines Inc Sr Unsecured

 

2.6% 04 Dec 2020

 

-

 

 

729,238

 

 

 

Deutsche Bank Ny Sr Unsecured

 

3.3% 16 Nov 2022

 

-

 

 

416,574

 

 

 

Discover Bank Subordinated

 

7% 15 Apr 2020

 

-

 

 

419,664

 

 

 

Discover Card Execution Note T Dcent 2015 A1 A1

 

1.83% 17 Aug 2020

 

-

 

 

421,794

 

 

 

Discovery Communications Company Guar

 

3.95% 20 Mar 2028

 

-

 

 

196,268

 

 

 

Dominion Energy Inc Sr Unsecured

 

2% 15 Aug 2021

 

-

 

 

1,039,360

 

 

 

Drive Auto Receivables Trust Drive 2016 Ca A3 144A

 

1.67% 15 Nov 2019

 

-

 

 

68,179

 

 

 

Drive Auto Receivables Trust Drive 2017 Ba A3 144A

 

1.74% 17 Jun 2019

 

-

 

 

307,962

 

 

 

E.I. Du Pont De Nemours Sr Unsecured

 

2.2% 01 May 2020

 

-

 

 

341,403

 

 

 

Ebay Inc Sr Unsecured

 

3.8% 09 Mar 2022

 

-

 

 

109,913

 

 

 

Edison International Sr Unsecured

 

2.13% 15 Apr 2020

 

-

 

 

758,518

 

 

 

Enbridge Inc Sr Unsecured

 

3.5% 10 Jun 2024

 

-

 

 

136,264

 

 

 

Energy Transfer Partners Company Guar

 

4.9% 01 Feb 2024

 

-

 

 

173,043

 

 

 

Energy Transfer Partners Company Guar

 

2.5% 15 Jun 2018

 

-

 

 

462,712

 

 

 

Energy Transfer Partners Company Guar

 

6.7% 01 Jul 2018

 

-

 

 

484,032

 

 

 

Energy Transfer Partners Company Guar

 

4.15% 01 Oct 2020

 

-

 

 

919,424

 

 

 

Entergy Corp Sr Unsecured

 

4% 15 Jul 2022

 

-

 

 

318,536

 

 

 

Entergy Texas Inc 1St Mortgage

 

3.45% 01 Dec 2027

 

-

 

 

390,161

 

 

 

Enterprise Fleet Financing Llc Eff 2017 3 A2 144A

 

2.13% 22 May 2023

 

-

 

 

297,861

 

 

 

Enterprise Products Oper Company Guar

 

5.2% 01 Sep 2020

 

-

 

 

262,246

 

 

 

Enterprise Products Oper Company Guar

 

3.35% 15 Mar 2023

 

-

 

 

338,624

 

 

 

Enterprise Products Oper Company Guar

 

3.7% 15 Feb 2026

 

-

 

 

389,309

 

 

 

Eqt Corp Sr Unsecured

 

3.9% 01 Oct 2027

 

-

 

 

177,026

 

 

 

Eqt Corp Sr Unsecured

 

3% 01 Oct 2022

 

-

 

 

333,302

 

 

 

Eversource Energy Sr Unsecured

 

2.75% 15 Mar 2022

 

-

 

 

385,716

 

 

 

Exelon Corp Sr Unsecured

 

2.85% 15 Jun 2020

 

-

 

 

582,914

 

 

 

Exelon Generation Co Llc Sr Unsecured

 

4.25% 15 Jun 2022

 

-

 

 

424,222

 

 

 

Exelon Generation Co Llc Sr Unsecured

 

2.95% 15 Jan 2020

 

-

 

 

738,980

 

 

 

Expedia Inc Company Guar 144A

 

3.8% 15 Feb 2028

 

-

 

 

739,443

 

 

 

Expedia Inc Company Guar 144A

 

3.8% 15 Feb 2028

 

-

 

 

252,062

 

 

 

Express Scripts Holding Company Guar

 

3% 15 Jul 2023

 

-

 

 

152,937

 

 

 

Fanniemae Aces Fna 2015 M17 FA

 

2.17% 25 Nov 2022

 

-

 

 

340,459

 

 

 

Fhlmc Multifamily Structured P Fhms K011 A1

 

2.92% 25 Aug 2020

 

-

 

 

160,401

 

 

 

Fhlmc Multifamily Structured P Fhms K021 A1

 

1.6% 25 Jan 2022

 

-

 

 

500,898

 

 

 

Fhlmc Multifamily Structured P Fhms K035 A1

 

2.62% 25 Mar 2023

 

-

 

 

377,841

 

 

 

Fhlmc Multifamily Structured P Fhms Kp03 A2

 

1.78% 25 Jul 2019

 

-

 

 

189,539

 

 

 

Fifth Third Bancorp Sr Unsecured

 

3.5% 15 Mar 2022

 

-

 

 

187,286

 

 

 

Fifth Third Bank Sr Unsecured

 

1.63% 27 Sep 2019

 

-

 

 

803,963

 

 

 

Ford Credit Auto Owner Trust Fordo 2016 A A4

 

1.6% 15 Jun 2024

 

-

 

 

262,651

 

 

 

Ford Credit Auto Owner Trust Fordo 2016 B A2A

 

1.08% 15 Mar 2019

 

-

 

 

102,180

 

 

 

Ford Credit Auto Owner Trust Fordo 2016 C A3

 

1.22% 15 Mar 2021

 

-

 

 

537,767

 

 

 

Ford Credit Auto Owner Trust Fordo 2017 C A3

 

2.01% 15 Mar 2022

 

-

 

 

878,149

 

 

 

Ford Credit Auto Owner Trust/F Fordr 2014 1 A 144A

 

2.26% 15 Nov 2025

 

-

 

 

337,577

 

 

 

Ford Credit Auto Owner Trust/F Fordr 2016 1 A 144A

 

2.31% 15 Aug 2027

 

-

 

 

311,791

 

 

 

Ford Credit Floorplan Master O Fordf 2016 1 A1

 

1.76% 15 Feb 2021

 

-

 

 

328,085

 

 

29

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Ford Credit Floorplan Master O Fordf 2017 1 A1

 

2.07% 15 May 2022

 

-

 

 

450,089

 

 

 

Ford Credit Floorplan Master O Fordf 2017 2 A1

 

2.16% 15 Sep 2022

 

-

 

 

323,137

 

 

 

Ford Motor Credit Co Llc Sr Unsecured

 

5.88% 02 Aug 2021

 

-

 

 

798,020

 

 

 

Ford Motor Credit Co Llc Sr Unsecured

 

2.37878% 12 Mar 2019

 

-

 

 

759,405

 

 

 

Fortis Inc Sr Unsecured

 

2.1% 04 Oct 2021

 

-

 

 

399,315

 

 

 

Fortune Brands Home + Se Sr Unsecured

 

3% 15 Jun 2020

 

-

 

 

247,664

 

 

 

General Electric Co Sr Unsecured

 

1.86917% 14 Jan 2019

 

-

 

 

849,788

 

 

 

General Motors Finl Co Company Guar

 

3.5% 07 Nov 2024

 

-

 

 

537,925

 

 

 

General Motors Finl Co Company Guar

 

3.25% 15 May 2018

 

-

 

 

28,019

 

 

 

General Motors Finl Co Company Guar

 

4% 15 Jan 2025

 

-

 

 

57,361

 

 

 

General Motors Finl Co Company Guar

 

4.3% 13 Jul 2025

 

-

 

 

70,214

 

 

 

General Motors Finl Co Company Guar

 

3.1% 15 Jan 2019

 

-

 

 

362,887

 

 

 

Gilead Sciences Inc Sr Unsecured

 

3.65% 01 Mar 2026

 

-

 

 

158,769

 

 

 

Gilead Sciences Inc Sr Unsecured

 

2.55% 01 Sep 2020

 

-

 

 

1,019,657

 

 

 

Glencore Funding Llc Company Guar 144A

 

3% 27 Oct 2022

 

-

 

 

162,038

 

 

 

Gm Financial Automobile Leasin Gmalt 2015 2 A3

 

1.68% 20 Dec 2018

 

-

 

 

234,559

 

 

 

Gm Financial Automobile Leasin Gmalt 2015 3 A3

 

1.69% 20 Mar 2019

 

-

 

 

315,088

 

 

 

Gm Financial Securitized Term Gmcar 2017 3A A3 144A

 

1.97% 16 May 2022

 

-

 

 

416,212

 

 

 

Gmf Floorplan Owner Revolving Gfort 2015 1 A1 144A

 

1.65% 15 May 2020

 

-

 

 

299,991

 

 

 

Gmf Floorplan Owner Revolving Gfort 2016 1 A1 144A

 

1.96% 17 May 2021

 

-

 

 

394,429

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

7.5% 15 Feb 2019

 

-

 

 

406,902

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

6% 15 Jun 2020

 

-

 

 

158,190

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

5.75% 24 Jan 2022

 

-

 

 

346,873

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

4% 03 Mar 2024

 

-

 

 

349,406

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

2.35% 15 Nov 2021

 

-

 

 

138,401

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

2.51586% 15 Nov 2018

 

-

 

 

929,764

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

3.07725% 29 Nov 2023

 

-

 

 

906,673

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

2.876% 31 Oct 2022

 

-

 

 

719,842

 

 

 

Goldman Sachs Group Inc Sr Unsecured

 

2.88% 31 Oct 2022

 

-

 

 

767,832

 

 

 

Gs Mortgage Securities Trust Gsms 2013 G1 A2 144A

 

3.56% 10 Apr 2031

 

-

 

 

420,810

 

 

 

Gs Mortgage Securities Trust Gsms 2014 Gc20 A3

 

3.68% 10 Apr 2047

 

-

 

 

692,394

 

 

 

Harley Davidson Motorcycle Tru Hdmot 2015 2 A3

 

1.3% 16 Mar 2020

 

-

 

 

210,980

 

 

 

Hartford Finl Svcs Grp Sr Unsecured

 

5.5% 30 Mar 2020

 

-

 

 

245,189

 

 

 

Healthcare Realty Trust Sr Unsecured

 

3.75% 15 Apr 2023

 

-

 

 

78,325

 

 

 

Healthcare Trust Of Amer Company Guar

 

2.95% 01 Jul 2022

 

-

 

 

379,205

 

 

 

Hess Corp Sr Unsecured

 

4.3% 01 Apr 2027

 

-

 

 

278,857

 

 

 

Honda Auto Receivables Owner T Harot 2016 4 A3

 

1.21% 18 Dec 2020

 

-

 

 

566,957

 

 

 

Host Hotels + Resorts Lp Sr Unsecured

 

3.75% 15 Oct 2023

 

-

 

 

12,738

 

 

 

Hp Enterprise Co Sr Unsecured

 

4.9% 15 Oct 2025

 

-

 

 

213,402

 

 

 

Hp Enterprise Co Sr Unsecured

 

3.6% 15 Oct 2020

 

-

 

 

398,018

 

 

 

Hp Enterprise Co Sr Unsecured

 

3.6% 15 Oct 2020

 

-

 

 

139,552

 

 

 

Hp Enterprise Co Sr Unsecured 144A

 

2.1% 04 Oct 2019

 

-

 

 

253,329

 

 

 

Hp Inc Sr Unsecured

 

4.3% 01 Jun 2021

 

-

 

 

898,168

 

 

 

Hp Inc Sr Unsecured

 

3.75% 01 Dec 2020

 

-

 

 

32,778

 

 

 

Hp Inc Sr Unsecured

 

4.65% 09 Dec 2021

 

-

 

 

101,287

 

 

 

Hsbc Holdings Plc Sr Unsecured

 

5.1% 05 Apr 2021

 

-

 

 

237,864

 

 

 

Hsbc Holdings Plc Sr Unsecured

 

2.65% 05 Jan 2022

 

-

 

 

908,351

 

 

30

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Hsbc Usa Inc Sr Unsecured

 

2.38% 13 Nov 2019

 

-

 

 

443,286

 

 

 

Hyundai Auto Lease Securitizat Halst 2017 A  A2A 144A

 

1.56% 15 Jul 2019

 

-

 

 

465,629

 

 

 

Ing Groep Nv Sr Unsecured

 

3.15% 29 Mar 2022

 

-

 

 

564,954

 

 

 

Israel Electric Corp Ltd Sr Secured 144A Regs

 

5% 12 Nov 2024

 

-

 

 

261,028

 

 

 

Jabil Inc Sr Unsecured

 

8.25% 15 Mar 2018

 

-

 

 

87,794

 

 

 

Jabil Inc Sr Unsecured

 

5.63% 15 Dec 2020

 

-

 

 

308,227

 

 

 

Jm Smucker Co Sr Unsecured

 

3.38% 15 Dec 2027

 

-

 

 

399,989

 

 

 

John Deere Owner Trust Jdot 2017 B3

 

1.82% 15 Oct 2021

 

-

 

 

219,734

 

 

 

Jpmbb Commercial Mortgage Secu Jpmbb 2014 C18 A2

 

2.8785% 15 Feb 2047

 

-

 

 

425,391

 

 

 

Jpmbb Commercial Mortgage Secu Jpmbb 2015 C32 Asb

 

3.36% 15 Nov 2048

 

-

 

 

1,204,585

 

 

 

Jpmorgan Chase + Co Sr Unsecured

 

4.4% 22 Jul 2020

 

-

 

 

288,189

 

 

 

Jpmorgan Chase + Co Sr Unsecured

 

3.63% 13 May 2024

 

-

 

 

485,420

 

 

 

Jpmorgan Chase + Co Sr Unsecured

 

3.78% 01 Feb 2028

 

-

 

 

259,335

 

 

 

Jpmorgan Chase + Co Sr Unsecured

 

3.22% 01 Mar 2025

 

-

 

 

383,171

 

 

 

Jpmorgan Chase + Co Sr Unsecured

 

2.295% 15 Aug 2021

 

-

 

 

372,032

 

 

 

Jpmorgan Chase Commercial Mor Jpmcc 2015 Sgp A 144A

 

3.18% 15 Jul 2036

 

-

 

 

345,518

 

 

 

Kellogg Co Sr Unsecured

 

3.4% 15 Nov 2027

 

-

 

 

584,322

 

 

 

Key Bank Na Sr Unsecured

 

3.18% 15 Oct 2027

 

-

 

 

392,747

 

 

 

Key Bank Na Sr Unsecured

 

2.5% 22 Nov 2021

 

-

 

 

263,310

 

 

 

Kinder Morgan Ener Part Company Guar

 

4.15% 01 Feb 2024

 

-

 

 

239,586

 

 

 

Kinder Morgan Ener Part Company Guar

 

4.15% 01 Mar 2022

 

-

 

 

195,834

 

 

 

Kinder Morgan Ener Part Company Guar

 

3.95% 01 Sep 2022

 

-

 

 

372,515

 

 

 

Kinder Morgan Ener Part Company Guar

 

6.85% 15 Feb 2020

 

-

 

 

646,429

 

 

 

Kla Tencor Corp Sr Unsecured

 

4.65% 01 Nov 2024

 

-

 

 

345,588

 

 

 

Kohl S Corporation Sr Unsecured

 

4.25% 17 Jul 2025

 

-

 

 

317,861

 

 

 

Kraft Heinz Foods Co Company Guar

 

2.8% 02 Jul 2020

 

-

 

 

440,484

 

 

 

Kraft Heinz Foods Co Company Guar

 

2.8% 02 Jul 2020

 

-

 

 

484,049

 

 

 

Kraft Heinz Foods Co Company Guar

 

1.98% 10 Feb 2021

 

-

 

 

771,973

 

 

 

Laboratory Corp Of Amer Sr Unsecured

 

3.6% 01 Feb 2025

 

-

 

 

136,877

 

 

 

Lam Research Corp Sr Unsecured

 

2.8% 15 Jun 2021

 

-

 

 

125,917

 

 

 

Life Technologies Corp Sr Unsecured

 

6% 01 Mar 2020

 

-

 

 

561,459

 

 

 

Lincoln National Corp Sr Unsecured

 

8.75% 01 Jul 2019

 

-

 

 

33,631

 

 

 

Lloyds Banking Group Plc Sr Unsecured

 

3.75% 11 Jan 2027

 

-

 

 

395,887

 

 

 

Lloyds Banking Group Plc Sr Unsecured

 

3.1% 06 Jul 2020

 

-

 

 

578,495

 

 

 

Lloyds Banking Group Plc Subordinated

 

4.65% 24 Mar 2026

 

-

 

 

203,272

 

 

 

Lstar Commercial Mortgage Trus Lnstr 2016 4 A2 144A

 

2.58% 10 Mar 2049

 

-

 

 

243,056

 

 

 

Lyondellbasell Ind Nv Sr Unsecured

 

5% 15 Apr 2019

 

-

 

 

414,087

 

 

 

Marathon Petroleum Corp Sr Unsecured

 

5.13% 01 Mar 2021

 

-

 

 

158,056

 

 

 

Medtronic Inc Company Guar

 

3.15% 15 Mar 2022

 

-

 

 

458,437

 

 

 

Medtronic Inc Company Guar

 

2.5% 15 Mar 2020

 

-

 

 

866,579

 

 

 

Met Life Glob Funding I Secured 144A

 

2.65% 08 Apr 2022

 

-

 

 

769,904

 

 

 

Met Life Glob Funding I Sr Secured 144A

 

1.75% 19 Sep 2019

 

-

 

 

334,469

 

 

 

Methanex Corp Sr Unsecured

 

3.25% 15 Dec 2019

 

-

 

 

101,519

 

 

*

Metlife Inc Sr Unsecured

 

7.72% 15 Feb 2019

 

-

 

 

120,682

 

 

*

Metlife Inc Sr Unsecured

 

3.048% 15 Dec 2022

 

-

 

 

423,561

 

 

 

Mitsubishi Ufj Fin Grp Sr Unsecured

 

3.85% 01 Mar 2026

 

-

 

 

392,705

 

 

 

Mizuho Bank Ltd Company Guar 144A

 

2.45% 16 Apr 2019

 

-

 

 

462,362

 

 

31

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Morgan Stanley Baml Trust Msbam 2014 C14 A3

 

3.67% 15 Feb 2047

 

-

 

 

900,146

 

 

 

Morgan Stanley Baml Trust Msbam 2015 C22 A4

 

3.31% 15 Apr 2048

 

-

 

 

264,921

 

 

 

Morgan Stanley Sr Unsecured

 

5.5% 24 Jul 2020

 

-

 

 

285,871

 

 

 

Morgan Stanley Sr Unsecured

 

3.59% 22 Jul 2028

 

-

 

 

388,563

 

 

 

Morgan Stanley Sr Unsecured

 

3.88% 29 Apr 2024

 

-

 

 

256,268

 

 

 

Morgan Stanley Sr Unsecured

 

5.5% 28 Jul 2021

 

-

 

 

328,496

 

 

 

Morgan Stanley Sr Unsecured

 

5.63% 23 Sep 2019

 

-

 

 

525,432

 

 

 

Morgan Stanley Sr Unsecured

 

2.625% 17 Nov 2021

 

-

 

 

962,953

 

 

 

Morgan Stanley Sr Unsecured

 

2.54261% 20 Jan 2022

 

-

 

 

244,618

 

 

 

Morgan Stanley Sr Unsecured

 

2.21% 14 Feb 2020

 

-

 

 

773,108

 

 

 

Mylan Nv Company Guar

 

3.15% 15 Jun 2021

 

-

 

 

382,329

 

 

 

Nabors Industries Inc Company Guar

 

5.5% 15 Jan 2023

 

-

 

 

305,311

 

 

 

National Rural Util Coop Sr Unsecured

 

1.5% 01 Nov 2019

 

-

 

 

237,579

 

 

 

Nevada Power Co Genl Ref Mor

 

6.5% 01 Aug 2018

 

-

 

 

246,833

 

 

 

Nisource Inc Sr Unsecured

 

6.8% 15 Jan 2019

 

-

 

 

79,472

 

 

 

Noble Energy Inc Sr Unsecured

 

3.9% 15 Nov 2024

 

-

 

 

246,429

 

 

 

Nordea Bank Ab Sr Unsecured 144A

 

2.5% 17 Sep 2020

 

-

 

 

905,819

 

 

 

Omega Hlthcare Investors Company Guar

 

4.75% 15 Jan 2028

 

-

 

 

372,115

 

 

 

Oracle Corp Sr Unsecured

 

2.95% 15 Nov 2024

 

-

 

 

387,778

 

 

 

Oracle Corp Sr Unsecured

 

1.9% 15 Sep 2021

 

-

 

 

710,518

 

 

 

Orix Corp Sr Unsecured

 

2.9% 18 Jul 2022

 

-

 

 

167,856

 

 

 

Orix Corp Sr Unsecured

 

3.25% 04 Dec 2024

 

-

 

 

364,602

 

 

 

Oscar Us Funding Trust Oscar 2017 2A A3 144A

 

2.45% 10 Dec 2021

 

-

 

 

66,770

 

 

 

Oscar Us Funding Trust Oscar 2017 2A A4 144A

 

2.76% 10 Dec 2024

 

-

 

 

85,515

 

 

 

Paccar Financial Corp Sr Unsecured

 

1.2% 12 Aug 2019

 

-

 

 

137,467

 

 

 

Paccar Financial Corp Sr Unsecured

 

2.25% 25 Feb 2021

 

-

 

 

810,606

 

 

 

Pacific Gas + Electric Sr Unsecured 144A

 

3.3% 01 Dec 2027

 

-

 

 

519,682

 

 

 

Petroleos Mexicanos Company Guar

 

4.63% 21 Sep 2023

 

-

 

 

328,753

 

 

 

Petroleos Mexicanos Company Guar 144A

 

6.5% 13 Mar 2027

 

-

 

 

152,549

 

 

 

Philip Morris Intl Inc Sr Unsecured

 

5.65% 16 May 2018

 

-

 

 

24,407

 

 

 

Pitney Bowes Inc Sr Unsecured

 

4.13% 15 May 2022

 

-

 

 

154,760

 

 

 

Pitney Bowes Inc Sr Unsecured

 

4.7% 01 Apr 2023

 

-

 

 

335,589

 

 

 

Plains All Amer Pipeline Sr Unsecured

 

3.85% 15 Oct 2023

 

-

 

 

172,436

 

 

 

Plains All Amer Pipeline Sr Unsecured

 

3.6% 01 Nov 2024

 

-

 

 

302,775

 

 

 

Pnc Bank Na Sr Unsecured

 

2.4% 18 Oct 2019

 

-

 

 

419,327

 

 

 

Pnc Bank Na Sr Unsecured

 

3.1% 25 Oct 2027

 

-

 

 

264,307

 

 

 

Pnc Financial Services Sr Unsecured

 

3.3% 08 Mar 2022

 

-

 

 

420,023

 

 

*

Prudential Financial Inc Sr Unsecured

 

4.5% 15 Nov 2020

 

-

 

 

288,876

 

 

 

Quest Diagnostics Inc Company Guar

 

4.75% 30 Jan 2020

 

-

 

 

336,961

 

 

 

Realty Income Corp Sr Unsecured

 

3.65% 15 Jan 2028

 

-

 

 

358,769

 

 

 

Reliance Steel + Alum Sr Unsecured

 

4.5% 15 Apr 2023

 

-

 

 

86,242

 

 

 

Republic Services Inc Sr Unsecured

 

3.38% 15 Nov 2027

 

-

 

 

252,134

 

 

 

Reynolds American Inc Company Guar

 

4% 12 Jun 2022

 

-

 

 

430,439

 

 

 

Reynolds American Inc Company Guar

 

8.125% 23 Jun 2019

 

-

 

 

609,075

 

 

 

Royal Bank Of Canada Sr Unsecured

 

2.15% 26 Oct 2020

 

-

 

 

765,066

 

 

 

S+P Global Inc Company Guar

 

3.3% 14 Aug 2020

 

-

 

 

191,188

 

 

 

S+P Global Inc Company Guar

 

4.4% 15 Feb 2026

 

-

 

 

300,363

 

 

32

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Santander Drive Auto Receivabl Sdart 2016 2 A3

 

1.56% 15 May 2020

 

-

 

 

187,636

 

 

 

Santander Holdings Usa Sr Unsecured 144A

 

4.4% 13 Jul 2027

 

-

 

 

383,898

 

 

 

Santander Holdings Usa Srs Unsecured 144A

 

3.7% 28 Mar 2022

 

-

 

 

384,782

 

 

 

Santander Uk Group Hldgs Sr Unsecured

 

2.88% 05 Aug 2021

 

-

 

 

494,498

 

 

 

Santander Uk Group Hldgs Sr Unsecured

 

2.88% 05 Aug 2021

 

-

 

 

319,743

 

 

 

Schlumberger Hldgs Corp Sr Unsecured 144A

 

3% 21 Dec 2020

 

-

 

 

394,881

 

 

 

Scslc 2010 1 A2

 

2.37% 25 Jul 2025

 

-

 

 

731,641

 

 

 

Seagate Hdd Cayman Company Guar 144A

 

4.88% 01 Mar 2024

 

-

 

 

498,469

 

 

 

Select Income Reit Sr Unsecured

 

4.25% 15 May 2024

 

-

 

 

205,262

 

 

 

Sempra Energy Sr Unsecured

 

4.05% 01 Dec 2023

 

-

 

 

493,347

 

 

*

Shire Acq Inv Ireland Da Company Guar

 

1.9% 23 Sep 2019

 

-

 

 

805,989

 

 

 

Simon Property Group Lp Sr Unsecured

 

3.38% 01 Dec 2027

 

-

 

 

270,762

 

 

 

Sky Plc Company Guar 144A

 

2.625% 16 Sep 2019

 

-

 

 

887,268

 

 

 

Snap On Inc Sr Unsecured

 

4.25% 15 Jan 2018

 

-

 

 

308,081

 

 

 

Southern Cal Edison 1St Ref Mort

 

5.5% 15 Aug 2018

 

-

 

 

393,527

 

 

 

Southwest Airlines Co Sr Unsecured

 

3.45% 16 Nov 2027

 

-

 

 

536,269

 

 

 

Spectra Energy Partners Sr Unsecured

 

3.5% 15 Mar 2025

 

-

 

 

449,469

 

 

 

Spectra Energy Partners Sr Unsecured

 

2.95% 25 Sep 2018

 

-

 

 

96,833

 

 

 

Starwood Retail Property Trust Srpt 2014 Star A 144A

 

2.7% 15 Nov 2027

 

-

 

 

449,078

 

 

*

State Street Corp Sr Unsecured

 

3.7% 20 Nov 2023

 

-

 

 

197,642

 

 

*

State Street Corp Sr Unsecured

 

2.65% 15 May 2023

 

-

 

 

433,272

 

 

 

Stryker Corp Sr Unsecured

 

2.625% 15 Mar 2021

 

-

 

 

598,187

 

 

 

Sumitomo Mitsui Finl Grp Sr Unsecured

 

2.78% 12 Jul 2022

 

-

 

 

382,820

 

 

 

Suntrust Bank Sr Unsecured

 

2.45% 01 Aug 2022

 

-

 

 

768,786

 

 

 

Svenska Handelsbanken Ab Company Guar

 

1.5% 06 Sep 2019

 

-

 

 

561,174

 

 

 

Synchrony Credit Card Master N Gemnt  2012 7A

 

1.76% 15 Sep 2022

 

-

 

 

1,380,604

 

 

 

Synchrony Credit Card Master N Gemnt 2012 2 A

 

2.22% 15 Jan 2022

 

-

 

 

538,758

 

 

 

Synchrony Credit Card Master N Synct 2015 3 A

 

1.74% 15 Sep 2021

 

-

 

 

389,353

 

 

 

Synchrony Financial Sr Unsecured

 

3.95% 01 Dec 2027

 

-

 

 

517,590

 

 

 

Synchrony Financial Sr Unsecured

 

3.95% 01 Dec 2027

 

-

 

 

369,022

 

 

 

Telefonica Emisiones Sau Company Guar

 

5.46% 16 Feb 2021

 

-

 

 

171,798

 

 

 

Teva Pharmaceuticals Ne Company Guar

 

3.15% 01 Oct 2026

 

-

 

 

212,191

 

 

 

Thermo Fisher Scientific Sr Unsecured

 

2.95% 19 Sep 2026

 

-

 

 

383,480

 

 

 

Time Warner Cable Llc Sr Secured

 

5% 01 Feb 2020

 

-

 

 

120,543

 

 

 

Time Warner Inc Company Guar

 

3.55% 01 Jun 2024

 

-

 

 

267,609

 

 

 

Time Warner Inc Company Guar

 

3.6% 15 Jul 2025

 

-

 

 

318,351

 

 

 

Time Warner Inc Company Guar

 

4.75% 29 Mar 2021

 

-

 

 

420,060

 

 

 

Time Warner Inc Company Guar

 

2.1% 01 Jun 2019

 

-

 

 

701,300

 

 

 

Trust F/1401 Sr Unsecured 144A

 

5.25% 30 Jan 2026

 

-

 

 

253,270

 

 

 

Tyson Foods Inc Company Guar

 

2.65% 15 Aug 2019

 

-

 

 

86,079

 

 

 

Ubs Barclays Commercial Mortga Ubsbb 2013 C6 A4

 

3.24% 10 Apr 2046

 

-

 

 

647,513

 

 

 

Ubs Group Funding Switze Company Guar 144A

 

4.13% 24 Sep 2025

 

-

 

 

205,060

 

 

 

United Technologies Corp Sr Unsecured

 

1.95% 01 Nov 2021

 

-

 

 

714,703

 

 

 

Unitedhealth Group Inc Sr Unsecured

 

2.125% 15 Mar 2021

 

-

 

 

750,039

 

 

 

Unum Group Sr Unsecured

 

5.63% 15 Sep 2020

 

-

 

 

393,766

 

 

 

Us Bancorp Sr Unsecured

 

2.625% 24 Jan 2022

 

-

 

 

871,268

 

 

 

Valero Energy Corp Sr Unsecured

 

6.13% 01 Feb 2020

 

-

 

 

272,643

 

 

33

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Verizon Communications Sr Unsecured

 

3.5% 01 Nov 2024

 

-

 

 

233,193

 

 

 

Verizon Communications Sr Unsecured

 

1.75% 15 Aug 2021

 

-

 

 

679,105

 

 

 

Verizon Owner Trust Vzot 2017 3A A1A 144A

 

2.06% 20 Apr 2022

 

-

 

 

699,055

 

 

 

Visa Inc Sr Unsecured

 

2.2% 14 Dec 2020

 

-

 

 

947,363

 

 

 

Vmware Inc Sr Unsecured

 

2.95% 21 Aug 2022

 

-

 

 

116,143

 

 

 

Volvo Financial Equipment Llc Vfet 2015 1A A3 144A

 

1.51% 17 Jun 2019

 

-

 

 

280,530

 

 

 

Voya Financial Inc Company Guar

 

3.13% 15 Jul 2024

 

-

 

 

248,011

 

 

 

Waldorf Astoria Boca Raton Tru Wabr 2016 Boca A 144A

 

2.83% 15 Jun 2029

 

-

 

 

505,154

 

 

 

Waste Management Inc Company Guar

 

4.6% 30 Jun 2020

 

-

 

 

403,747

 

 

 

Waste Management Inc Company Guar

 

4.75% 01 Mar 2021

 

-

 

 

427,900

 

 

 

Wells Fargo + Company Sr Unsecured

 

2.63% 22 Jul 2022

 

-

 

 

540,915

 

 

 

Wells Fargo + Company Sr Unsecured

 

3.07% 24 Jan 2023

 

-

 

 

301,599

 

 

 

Wells Fargo + Company Sr Unsecured

 

2.6% 22 Jul 2020

 

-

 

 

774,780

 

 

 

Wells Fargo Commercial Mortgag Wfcm2017 Rc1 A2

 

3.12% 15 Jan 2060

 

-

 

 

1,172,895

 

 

 

Welltower Inc Sr Unsecured

 

4% 01 Jun 2025

 

-

 

 

405,095

 

 

 

Welltower Inc Sr Unsecured

 

5.25% 15 Jan 2022

 

-

 

 

428,854

 

 

 

Western Union Co/The Sr Unsecured

 

3.6% 15 Mar 2022

 

-

 

 

521,323

 

 

 

Westpac Banking Corp Sr Unsecured

 

2.75% 11 Jan 2023

 

-

 

 

518,717

 

 

 

Wf Rbs Commercial Mortgage Tru Wfrbs 2013 C14 A5

 

3.34% 15 Jun 2046

 

-

 

 

258,534

 

 

 

Wf Rbs Commercial Mortgage Tru Wfrbs 2013 C17 A2

 

2.921% 15 Dec 2046

 

-

 

 

536,990

 

 

 

Wf Rbs Commercial Mortgage Tru Wfrbs 2014 C19 A3

 

3.66% 15 Mar 2047

 

-

 

 

617,069

 

 

 

Wf Rbs Commercial Mortgage Tru Wfrbs 2014 C19 A5

 

4.10% 15 Mar 2047

 

-

 

 

353,242

 

 

 

Wf Rbs Commercial Mortgage Tru Wfrbs 2014 C24 A5

 

3.61% 15 Nov 2047

 

-

 

 

752,990

 

 

 

Wheels Spv Llc Whls 2016 1A A3 144A

 

1.87% 20 May 2025

 

-

 

 

397,913

 

 

 

Williams Partners Lp Sr Unsecured

 

3.6% 15 Mar 2020

 

-

 

 

241,227

 

 

 

Williams Partners Lp Sr Unsecured

 

3.9% 15 Jan 2025

 

-

 

 

279,587

 

 

 

Williams Partners Lp Sr Unsecured

 

4% 15 Nov 2021

 

-

 

 

338,446

 

 

 

World Financial Network Credit Wfnmt 2013 A A

 

1.61% 15 Dec 2021

 

-

 

 

247,325

 

 

 

World Financial Network Credit Wfnmt 2015 A A

 

1.96% 15 Feb 2022

 

-

 

 

348,720

 

 

 

World Financial Network Credit Wfnmt 2016 B A

 

1.44% 02 Jun 2022

 

-

 

 

226,494

 

 

 

World Financial Network Credit Wfnmt 2017 B A

 

1.98% 15 Jun 2023

 

-

 

 

278,044

 

 

 

World Financial Network Credit Wfnmt 2017 C A

 

2.31% 15 Aug 2024

 

-

 

 

738,053

 

 

 

Xerox Corporation Sr Unsecured

 

3.63% 15 Mar 2023

 

-

 

 

516,441

 

 

 

Yamana Gold Inc Company Guar

 

4.95% 15 Jul 2024

 

-

 

 

162,120

 

 

 

Zimmer Biomet Holdings Sr Unsecured

 

2.7% 01 Apr 2020

 

-

 

 

394,837

 

 

 

Corporate and Other Obligations

 

 

 

-

 

 

178,812,807

 

 

 

Separate Investment Contract:

 

 

 

 

 

 

 

 

 

*

Metropolitan Life Insurance Company

 

Separate Investment Account

 

-

 

 

131,481,307

 

 

 

Benefit Resource Interest Rate Wrapper Contracts:

 

 

 

 

 

 

 

 

 

*

Metropolitan Life Insurance Company

 

 

 

-

 

 

(82,807

)

 

*

Prudential Financial Inc

 

 

 

-

 

 

(69,802

)

 

*

Transamerica Inc

 

 

 

-

 

 

(146,234

)

 

 

Benefit Resource Interest Rate Wrapper Contracts

 

 

 

-

 

 

(298,843

)

 

 

Synthetic Guaranteed Investment Contracts at Fair Value

 

 

 

-

 

 

562,564,774

 

 

 

Adjustment to Contract Value

 

 

 

-

 

 

(13,682,506

)

 

 

Synthetic Guaranteed Investment Contracts at Contract Value

 

 

 

-

 

 

548,882,268

 

 

34

 


Baxter International Inc. and Subsidiaries

Incentive Investment Plan

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

Employer Identification Number: 36-0781620 and Plan Number 023

December 31, 2017

 

Identity of Issue

 

Description of Investment

Cost(1)

 

Current Value

 

 

 

Common-collective Trusts:

 

 

 

 

 

 

 

 

 

*

Northern Trust Domestic Mid Cap

 

Common-collective Trusts

 

-

 

 

45,958,866

 

 

*

SSgA Emerging Markets Equity

 

Common-collective Trusts

 

-

 

 

27,333,168

 

 

*

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

 

Common-collective Trusts

 

-

 

 

358,004,390

 

 

*

State Street International Index Non-Lending Series Fund

 

Common-collective Trusts

 

-

 

 

94,144,515

 

 

*

State Street Russell Small Cap Index Non-Lending Series Fund

 

Common-collective Trusts

 

-

 

 

129,287,497

 

 

*

Vanguard Target Retirement Income

 

Common-collective Trusts

 

-

 

 

26,243,773

 

 

*

Vanguard Target Retirement 2015

 

Common-collective Trusts

 

-

 

 

30,560,121

 

 

*

Vanguard Target Retirement 2020

 

Common-collective Trusts

 

-

 

 

71,203,506

 

 

*

Vanguard Target Retirement 2025

 

Common-collective Trusts

 

-

 

 

93,468,281

 

 

*

Vanguard Target Retirement 2030

 

Common-collective Trusts

 

-

 

 

97,834,745

 

 

*

Vanguard Target Retirement 2035

 

Common-collective Trusts

 

-

 

 

102,278,284

 

 

*

Vanguard Target Retirement 2040

 

Common-collective Trusts

 

-

 

 

85,196,296

 

 

*

Vanguard Target Retirement 2045

 

Common-collective Trusts

 

-

 

 

60,626,761

 

 

*

Vanguard Target Retirement 2050

 

Common-collective Trusts

 

-

 

 

66,997,884

 

 

*

Vanguard Target Retirement 2055

 

Common-collective Trusts

 

-

 

 

441,824

 

 

 

Comingled Investments

 

 

 

-

 

 

1,289,579,910

 

 

***

Self-managed Fund:

 

 

 

 

 

 

 

 

 

 

Self-managed Fund

 

 

 

-

 

 

60,929,757

 

 

*

Participant Loans

 

Interest rates range from 4.25% to 7.00%

 

-

 

 

35,829,168

 

 

 

Collateral Held on Loaned Securities

 

 

 

 

 

 

 

 

 

*

SSgA Quality D Short-term Investment Fund

 

 

 

-

 

 

7,343,200

 

 

 

Total Investments

 

 

 

-

 

$

2,484,142,566

 

 

 

 

 

*

Party-in-interest

**

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

***

Certain investments in this fund are with Parties-in-Interest

Cost information not required for participant-directed investments.

 

35

 


 

SIGNATURE

 

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

 

 

BAXTER INTERNATIONAL INC. AND SUBSIDIARIES

 

INCENTIVE INVESTMENT PLAN

 

 

 

 

Date:   June 29, 2018

By:

 

/s/ James K. Saccaro

 

 

 

James K. Saccaro

 

 

 

Member of the Administrative Committee

 

 

 

 

 


 

Exhibit No.

 

Exhibit

 

 

 

23.1

 

Consent of Independent Registered Public Accounting Firm