SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
X ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE
------- SECURITIES EXCHANGE ACT OF 1934
For the year ended December 31, 2001
OR
TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE
------- SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____ to ____
Commission file number 1-4448
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
Baxter International Inc.
One Baxter Parkway
Deerfield, IL 60015
(847) 948-2000
Baxter International Inc.
and Subsidiaries
Incentive Investment Plan
Financial Statements and Supplemental Schedule
December 31, 2001 and 2000
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Index To Financial Statements and Supplemental Schedule
--------------------------------------------------------------------------------
Financial Statements: Page(s)
Report of Independent Accountants 1
Statements of Net Assets Available for
Benefits as of December 31, 2001 and 2000 2
Statements of Changes in Net Assets Available
for Benefits for the years ended December 31, 2001 and 2000 3
Notes to Financial Statements 4-8
Supplemental Schedule:*
Schedule I: Schedule of Assets Held for Investment Purposes as of December
31, 2001
* Other schedules required by the Section 2520.103-10 of the Department of Labor
Rules and Regulations for Reporting and Disclosure under ERISA have been omitted
because they are not applicable.
Report of Independent Accountants
To the Administrative Committee of
the Baxter International Inc. and
Subsidiaries Incentive Investment Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of the Baxter International Inc. and Subsidiaries Incentive Investment Plan (the
"Plan") at December 31, 2001 and 2000, 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. These financial statements
are the responsibility of the Plan's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of Assets Held
for Investment Purposes is presented for the purpose of additional analysis and
is not a required part of the basic financial statements but is supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This supplemental schedule is the responsibility of the Plan's management.
The supplemental schedule has been subjected to the auditing procedures applied
in the audits of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
PricewaterhouseCoopers LLP
Chicago, Illinois
June 14, 2002
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Statements of Net Assets Available for Benefits
As of December 31, 2001 and 2000
--------------------------------------------------------------------------------
2001 2000
Assets
Investments:
At fair value
Cash and cash equivalents $ 46,162,512 $ 22,746,053
Common stock 544,830,422 493,147,686
Fixed income securities 60,867,679 76,830,248
Commingled investments 178,841,650 230,525,351
Participant loans 29,458,270 27,235,800
-------------- ---------------
860,160,533 850,485,138
At contract value
Guaranteed investment contracts 477,487,900 438,480,211
-------------- ---------------
Total investments 1,337,648,433 1,288,965,349
-------------- ---------------
Receivables:
Employer's contribution - 139,995
Participants' contributions - 307,278
Accrued interest and dividends 3,727,571 3,683,600
Due from brokers for securities sold 2,296,837 3,239,971
Other 356,353 458,854
-------------- ---------------
6,380,761 7,829,698
-------------- ---------------
Total assets 1,344,029,194 1,296,795,047
-------------- ---------------
Liabilities
Accounts payable 1,422,909 1,470,071
Due to brokers for securities purchased 537,625 7,511,974
-------------- ---------------
Total liabilities 1,960,534 8,982,045
-------------- ---------------
Net assets available for benefits $1,342,068,660 $ 1,287,813,002
-------------- ---------------
The accompanying notes are an integral part of these financial statements.
-2-
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2001 and 2000
--------------------------------------------------------------------------------
2001 2000
Additions to net assets attributed to:
Investment income:
Interest $ 34,286,941 $ 35,555,733
Participant loan interest 2,639,075 2,360,087
Dividends 6,747,872 7,022,019
Net appreciation in fair value of assets 5,815,811 43,048,946
--------------- ---------------
49,489,699 87,986,785
--------------- ---------------
Contributions:
Employer's 17,941,866 16,376,304
Participants' 48,313,693 41,796,106
--------------- ---------------
66,255,559 58,172,410
--------------- ---------------
Transfers from other plans 11,803,992 -
--------------- ---------------
Total additions 127,549,250 146,159,195
--------------- ---------------
Deductions from net assets attributed to:
Benefits paid 68,713,637 118,965,546
Plan expenses 4,579,955 4,193,026
Transfers to other plans - 129,920,265
--------------- ---------------
Total deductions 73,293,592 253,078,837
--------------- ---------------
Net increase (decrease) 54,255,658 (106,919,642)
Net assets available for plan benefits:
Beginning of year 1,287,813,002 1,394,732,644
--------------- ---------------
End of year $ 1,342,068,660 $ 1,287,813,002
--------------- ---------------
The accompanying notes are an integral part of these financial statements.
-3-
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements
--------------------------------------------------------------------------------
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
agreement for more complete information.
The Plan allows tax deferred contributions in compliance with Section
401(k) of the Internal Revenue Code. Eligible participants may make
pre-tax contributions of up to 12% of their eligible annual compensation
within certain limitations. The Plan sponsor, Baxter International Inc.
("Baxter"), matches participant contributions up to a maximum of 3% of
the employees' compensation. Participant contributions are fully vested
at all times. Vesting in the Plan sponsor matching contributions is based
on years of continuous service. A participant vests in annual increments
of 20% and, therefore, is 100% vested after five years of credited
service. Participants may borrow up to the lesser of $50,000 or 50% of
their account balance. The loans are secured by the balance in the
participant's account and bear interest at variable rates as outlined in
the Plan.
When certain terminations of participation in the Plan occur, the
nonvested portion of the participant's account, as defined by the Plan,
represents a forfeiture. Forfeitures are utilized to reduce Baxter
matching contributions for the plan year. However, if the participant is
re-employed and fulfills certain requirements, as defined in the Plan,
the participant's account will be reinstated. Forfeitures utilized for
the periods ended December 31, 2001 and 2000 were $490,233 and $565,348,
respectively.
Upon enrollment in the Plan, a participant may direct contributions in
any of eight investment options: Stable Income Fund, Baxter Common Stock
Fund, Composite Fund, General Equity Fund, S&P 500 Equity Index Fund,
International EAFE Equity Index Fund, Small Cap Fund and the Self-Managed
Fund. In addition, certain participants may maintain shares received (the
"Allegiance Shares") in connection with Baxter's 1996 spin-off of
Allegiance Corporation ("Allegiance"). The Allegiance Shares were
subsequently converted to common shares of Cardinal Health Inc.
("Cardinal") upon Cardinal's acquisition of Allegiance in 1999. The
Cardinal shares are maintained in the Cardinal Health Common Stock Fund.
On March 31, 2000, Baxter spun-off its Cardiovascular Business Group in
the form of a tax-free distribution to shareholders. As a result,
approximately $130 million of assets were transferred from the Plan to
Edwards Lifesciences Corporation 401(k) Savings and Investment Plan. In
addition, certain participants received shares in Edwards Lifesciences
Corporation, which were placed into the Edwards Lifesciences Common Stock
Fund. Participants are not able to make contributions to the Cardinal
Health Common Stock Fund or the Edwards Lifesciences Common Stock Fund.
2. Summary of Significant Accounting Policies
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. The
valuation of Plan investments is determined as follows:
-4-
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements, Continued
--------------------------------------------------------------------------------
U.S. government and government agency issues Value based on the last reported sale price from a
national security exchange on the valuation date
Corporate and other bonds Value based on the last reported sale price from a
national security exchange on the valuation date
Common stock:
Traded on national exchanges Value based on composite pricing of all national
closing sales prices on the valuation date
Traded on over-the-counter market Value based on last reported sale price defaulting
to bid quotations
Commingled investments Value based on closing prices of the underlying
securities on the valuation date
Guaranteed Investment Contracts Value based on contract value
Short term investments Value based on cost which approximates fair value
Loan fund Value based on cost which approximates fair
value
Plan investment return includes dividend and interest income, gains and
losses on sales of investments and unrealized appreciation or depreciation
of investments. The financial statements reflect the net appreciation in
the fair value of the Plan's investments. This net 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.
The Plan's Guaranteed Investment Accounts under two contracts are
maintained in deposit accounts which are credited monthly with earnings on
the underlying investments and charged for Plan withdrawals and expenses.
These contracts are fully benefit-responsive and are reported in the
financial statements at contract value, which approximates fair value.
Contract value represents contributions made under the contracts, plus
earnings, less withdrawals and expenses. There are no reserves for credit
risk of the contract issuer or otherwise. The average yield was 5.2% and
6.9% and the average crediting interest rate was 6.4% and 6.9% for the
investment contracts for 2001 and 2000, respectively. The crediting
interest rates are based on an agreed-upon formula with the issuer, which
are reset monthly and cannot be less than zero percent. The Plan's two
contracts, Baxter Global Wrap Account and Pacific Investment Management
Company, utilize a wrapper contract issued by Aegon Institutional Markets
and State Street Bank and Trust Company, respectively.
Employee contributions and matching contributions are recorded in the
period in which they are earned by participants.
Due from or due to brokers for securities sold or purchased, respectively,
represent the cash value of security trades initiated but not yet settled
at each respective year-end.
-5-
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements, Continued
--------------------------------------------------------------------------------
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles 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.
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:
1. U.S. employees of Baxter or its subsidiaries which have adopted the
Plan.
2. U.S. employees not covered by a collective bargaining agreement unless
the agreement provides for coverage under the Plan.
3. U.S. employees who are not leased employees.
4. Administration of the Plan
State Street Bank and Trust Company serves as trustee and CitiStreet LLC
serves as record keeper for the Plan.
The Administrative Committee administers the Plan. The Investment Committee
has authority, responsibility and control over the management of the assets
of the Plan. Members of both committees are appointed by the Board of
Directors of Baxter and are employees of Baxter.
Substantially all investment manager, trustee and administrative fees
incurred in the administration of the Plan were paid from the assets of the
Plan.
5. Investments
Investments representing five percent or more of the Plan's assets at
December 31, 2001 and 2000 are summarized as follows:
2001 2000
Baxter Common Stock, 4,217,818 shares
and 3,662,262* shares at December 31,
2001 and 2000, respectively $ 226,202,673 $ 161,711,715
S&P 500 Equity Index Fund 139,339,773 187,971,229
* Share information has been restated for the May 30, 2001 two-for-one stock
split.
-6-
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements, Continued
--------------------------------------------------------------------------------
Investments as of December 31, 2001 and 2000 are segregated into various
investment funds as follows:
2001 2000
Cash $ 581,218 $ -
Stable Income Fund 506,852,358 448,854,534
Baxter Common Stock Fund 231,083,106 164,299,832
Composite Fund 167,268,052 178,058,540
General Equity Fund 178,529,291 205,527,048
Cardinal Health Common Stock Fund 22,448,072 25,288,692
S&P 500 Equity Index Fund 139,339,773 187,971,229
International EAFE Equity Index Fund 19,461,724 31,516,656
Loan Fund 29,458,270 27,235,800
Edwards Lifesciences Common Stock Fund 12,402,950 9,175,553
Small Cap Fund 12,964,513 11,037,465
Self-Managed Fund 17,259,106 -
--------------- ---------------
Total Investments $ 1,337,648,433 $ 1,288,965,349
=============== ===============
The fund amounts above include $45,581,294 and $22,746,053 of cash and cash
equivalents at December 31, 2001 and 2000, respectively, which are awaiting
investment in their respective portfolios.
Net appreciation (depreciation) for each respective year is comprised of:
2001 2000
Baxter common stock unrealized appreciation, net $ 10,247,204 $ 27,019,307
Other unrealized depreciation, net (42,323,977) (72,193,926)
Baxter common stock realized gain, net 33,011,937 32,693,562
Other realized gain, net 4,880,647 55,530,003
------------ ------------
$ 5,815,811 $ 43,048,946
============ ============
-7-
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements, Continued
--------------------------------------------------------------------------------
Net appreciation (depreciation) in fair value for each significant class of
investment, which includes realized and unrealized gains and losses, is as
follows:
2001 2000
U.S. government and government
agency issues $ 427,347 $ 2,946,782
Corporate and other bonds 388,249 438,343
Commingled investments (28,492,957) (22,932,925)
Common stock 33,493,172 62,596,746
------------ -------------
$ 5,815,811 $ 43,048,946
============ =============
6. Distribution Priorities Upon Termination of the Plan
Upon termination of the Plan, the account balance of each participant will
become 100% vested and all assets, net of expenses, will be distributed to
the participants or beneficiaries.
7. Tax Status of the Plan
The Internal Revenue Service has determined and informed the Company by a
letter dated May 4, 1999 that the Plan is designed in accordance with
applicable sections of the Internal Revenue Code. The Plan has not been
amended since receiving the determination letter.
8. Related Parties
At December 31, 2001 and 2000, the Plan held units of participation in
certain common/collective trust funds and short term investment funds of
State Street Bank and Trust Company, the Plan trustee, shares of common
stock of Baxter, the Plan sponsor, loans with participants, and shares of
common stock and fixed income securities in CitiGroup Inc., CitiBank
Mortgage Securities Inc., CitiBank Credit Card Issuance Trust and CitiBank
Credit Card Master Trust I, which are all affiliated with CitiStreet LLC,
the record keeper. These transactions are allowable party-in-interest
transactions under the Employee Retirement Income Security of 1974 and the
regulations promulgated thereunder.
9. Plan Merger
In March 2000, Baxter acquired Althin Medical, Inc. As a result the Althin
Medical, Inc. 401(k) Plan was merged into the Plan effective March 1, 2001.
As a result of the merger, total assets of approximately $11.8 million
(including loans) were transferred into the Plan.
-8-
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 1 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Identity of Issue Description of Investment Cost of Asset Current Value
----------------------------------------- -------------------------------- ------------------ -----------------
Cash & cash equivalents:
* State Street Bank & Trust Co. Short Term Investment Fund - $46,162,512
------------------ -----------------
Common stocks:
3Com Corp Common Stock - $ 3,828
3D0 Company Common Stock - 32,240
800 Travel Systems Inc Common Stock - 11
Abbott Laboratories Common Stock - 86,460
Aberdeen Asia Pacific Income FD Inc Common Stock - 15,360
Acln Limited Common Stock - 927
Actrade Finl Tech Ltd Common Stock - 10,308
Adaptive Broadband Corp Common Stock - 2
Adc Telecommunications Inc Common Stock - 26,450
Adobe Sys Inc Common Stock - 3,105
Advanced Micro Devices Inc Common Stock - 28,278
Aeroflex Inc Common Stock - 3,786
Aetna Inc Common Stock - 3,535,075
Affymetrix Inc Common Stock - 3,775
Aflac Inc Nfsc Common Stock - 16,683
Aksys Ltd Common Stock - 2,558
Alaris Medical Inc Common Stock - 34,288
Alcoa Inc Common Stock - 35,550
Alliance Pharmaceutical Corp Common Stock - 2,448
Allianz Aktiengesell Schaft Sponsores Common Stock - 11,800
Allied Capital Corp Common Stock - 32,240
Allstate Corp Common Stock - 1,251,209
Alpharma Inc Common Stock - 5,290
Amazon.com Inc Common Stock - 357
Ambac Finl Group Inc Common Stock - 1,300,388
Amdocs Limited Common Stock - 27,312
Amerada Hess Corp Common Stock - 915,821
American Elec Pwr Inc Common Stock - 4,999,371
American Express Co Common Stock - 35,690
American Home Products Corp Common Stock - 735,088
American Intl Group Inc Common Stock - 2,208,999
American Mtg Accep Co Common Stock - 2,910
Americredit Corp Common Stock - 12,620
Ameritrade Hldg Corp Common Stock - 5,920
Amgen Inc Common Stock - 26,696
Amr Corp Common Stock - 2,230
Amylin Pharm Inc Common Stock - 320
Anheuser Busch Cos Common Stock - 904
AOL Time Warner Inc Common Stock - 151,737
AOL Time Warnter Inc Common Stock - 3,495,960
Aon Corp Common Stock - 1,635,289
Apache Corp Common Stock - 4,988
Apple Computer Inc Common Stock - 2,190
Applera Corp Common Stock - 7,854
Applied Digital Solutions Inc Common Stock - 26,488
Applied Innovation Inc Common Stock - 1,240
Applied Materials Inc Common Stock - 48,521
Applied Micro Circuits Corp Common Stock - 13,584
Arch Coal Inc Common Stock - 2,270
Archer Daniels Midland Common Stock - 1,507
Aremissoft Corp Common Stock - 2,814
Ariba Inc Common Stock - 46,908
Arm Holdings Plc Spons Common Stock - 1,559
Arrow Electrs Inc Common Stock - 1,965,658
Arrow Finl Corp Common Stock - 3,115
Artemis Intl Solutions Corp Common Stock - 125
Ascential Software Corp Common Stock - 4,050
Asia Pulp & Paper Co Common Stock - 190
Astrazeneca Plc- Spons Common Stock - 6,058
Astronics Corp Common Stock - 2,819
Astropower Inc Common Stock - 4,043
AT & T Corp Common Stock - 9,070
At Home Corp Common Stock - 150
AT&T Wireless Svcs Inc Common Stock - 2,346,974
Atlas Pipeline Partners Common Stock - 2,439
Atmel Corp Common Stock - 737
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 2 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Atsi Communications Inc Common Stock - 2,800
Audiocodes Ltd Common Stock - 1,130
Avici Sys Inc Common Stock - 3,233
Avnet Inc Common Stock - 1,094,428
Backweb Technologies Ltd Common Stock - 540
Baker Hughes Inc Common Stock - 12,765
Ballard Pwr Sys Inc Common Stock - 4,140
Bank Amer Corp Common Stock - 5,976,997
Bank One Corp Common Stock - 4,279,937
* Baxter International Inc. Common Stock - 226,202,673
Bea Systems Inc Common Stock - 18,634
Berkshire Hathaway Inc Common Stock - 2,184,019
Beyond Corp Com Common Stock - 13,041
Biolase Tech Inc Common Stock - 35,847
Biomerica Inc Common Stock - 9,240
Black & Decker Corp Common Stock - 1,906
Black Box Corp Common Stock - 5,288
Blue Martini Software Inc Common Stock - 3,010
Boeing Co Nfsc Common Stock - 32,561
Bonso Electrs Intl Common Stock - 24,066
Boston Biomedica Inc Common Stock - 11,684
Boston Scientific Corp Common Stock - 1,530,749
BP Amoco Plc Common Stock - 9,369
Bradley Pharmacetls Inc Common Stock - 27,037
Breakaway Solutions Inc Common Stock - 39
Bristol Myers Squibb Common Stock - 9,491
Britesmile Inc Common Stock - 2,000
Broadband Holdrs Common Stock - 13,200
Broadcom Corp Common Stock - 17,165
Broadvision Inc Common Stock - 31,729
Brocade Communications Sys Inc Common Stock - 331
Brown Tom Inc Com Common Stock - 6,077
Burlington Northn Santa Fe Common Stock - 1,988,580
Cable & Wireless Plc Common Stock - 7,997
Cabot Microelectronics Crp Common Stock - 23,775
California Amplifier Common Stock - 103,199
Calpine Corp Common Stock - 3,358
Canadian 88 Energy Corp Common Stock - 1,170
Canadian Natural Resources Ltd Common Stock - 24,400
Candies Inc Common Stock - 3,104
Capstone Turbine Corp Common Stock - 379
Cardinal Health Inc Common Stock - 886,101
Cardinal Health Inc Common Stock - 24,503,869
Caremark Rx Inc Common Stock - 24,465
Carreker Antinori Inc Common Stock - 1,180
Cdw Computer Ctrs Common Stock - 18,799
Celestica Inc Common Stock - 4,039
Cell Genesys Inc Common Stock - 1,394
Cendant Corp Common Stock - 19,610
Cendant Corp Common Stock - 825,154
Central European Distr Corp Common Stock - 4,952
Centurytel Inc Common Stock - 1,656,200
Charter Comm Inc Common Stock - 4,108
Check Point Software Tech Ltd Common Stock - 19,945
Chesapeake Energy Corporation Oklahoma Common Stock - 1,983
Chevrontexaco Corp Common Stock - 17,922
Chiquita Brands Intl Inc Common Stock - 1,024
Chubb Corp Common Stock - 2,418,361
Ciena Corp Common Stock - 6,654
Cisco Sys Inc Common Stock - 3,211,831
* CitiGroup Inc Common Stock - 6,461,414
Citizens Communications Co Common Stock - 1,166,241
Clear Channel Communications Common Stock - 630,060
Cmg Information Svcs Inc Common Stock - 1,182
Coca Cola Co Common Stock - 9,546
Colgate Palmolive Co Common Stock - 1,120,667
Colorado Medtech Inc Common Stock - 2,950
Comcast Corp Common Stock - 18,000
Comcast Corp Common Stock - 121,185
Comdisco Inc Common Stock - 676
Commerce One Inc Common Stock - 1,785
Commtouch Software Ltd Common Stock - 135
Compaq Computer Co Common Stock - 60,512
Conagra Inc Common Stock - 4,754
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 3 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Conagra Inc Common Stock - 564,819
Concord EFS Inc Common Stock - 253,147
Concur Technologies Inc Common Stock - 2,768
Conexant Sys Inc Common Stock - 8,616
Conoco Inc Common Common Stock - 4,245
Conseco Inc Common Stock - 4,460
Constellation Energy Group Inc Common Stock - 1,918,917
Continental Airls Inc Common Stock - 18,740
Convergys Corp Common Stock - 1,577,513
Cooper Tire & Rubber Co Common Stock - 663,668
Corecomm Ltd Common Stock - 800
Corning Inc Common Stock - 56,342
Corvis Corp Common Stock - 61,451
Covad Communications Group Inc Common Stock - 280
Creative Host Services Inc Common Stock - 19,688
Crown Cork & Seal Inc Common Stock - 143,846
CSX Corp Common Stock - 5,506,264
Cyber-Care Inc Common Stock - 4,800
Cymer Inc Common Stock - 4,010
Cytogen Corp Common Stock - 6,020
Daimlerchrysler Common Stock - 4,302
Dana Corp Common Stock - 540,071
Data Race Inc Common Stock - 160
Datastream Systems Inc Common Stock - 771
Deere & Company Common Stock - 6,659
Dell Computer Corp Common Stock - 1,011,064
Delta Air Lines Common Stock - 1,170
Denbury Res Inc Common Stock - 731
Digital Lightwave Inc Common Stock - 44,367
Discovery Partners Intl Inc Common Stock - 7,400
Disney Walt Co Common Stock - 776,850
Divine Inc Common Stock - 308
Dollar Gen Corp Common Stock - 1,276
Dot Hill Sys Corp Common Stock - 672
Dover Corp Common Stock - 568,883
Dow Chem Co Common Stock - 3,220,732
Dow Chem Co Common Stock - 3,378
Dsl.net Inc Common Stock - 6,300
Du Pont E I De Nemours & Co Common Stock - 4,251
Ducati Motor Holding Common Stock - 15,750
Duke Energy Co Common Stock - 1,399,334
Duke Energy Co Common Stock - 89,631
Dycom Inds Inc Common Stock - 6,684
Dynegy Inc Common Stock - 100,988
E Loan Inc Common Stock - 5,520
E M C Corp Common Stock - 217,849
E*Trade Group Inc. Common Stock - 10,250
E.Piphany Inc Common Stock - 1,742
Eastman Chem Co Common Stock - 1,760,534
Eastman Kodak Co Common Stock - 1,472
Eaton Corp Common Stock - 1,068,238
EB2B Commerce Inc Common Stock - 1,200
Echostar Communications Common Stock - 5,494
Edge Pete Corp Common Stock - 1,060
Edwards A G Common Stock - 3,310
Edwards Lifesciences Corp Common Stock - 12,317,646
El Paso Corp Common Stock - 1,338
Elan Corp Plc Common Stock - 1,352
Electronic Data System Corp Common Stock - 6,800,548
Electronics Arts Common Stock - 2,998
Engelhard Corp Common Stock - 972,889
Enron Corp Oregan Common Stock - 7,266
Epicor Software Corp Common Stock - 15,645
Epimmune Inc Common Stock - 225
Equifax Inc Common Stock - 1,243,338
Ericsson L M Tel Co Common Stock - 23,547
Exodus Communications Inc Common Stock - 70
Exxon Mobil Corp Common Stock - 63,526
Fannie Mae Common Stock - 10,176
Federal Home Ln Mtg Corp Common Stock - 5,082,953
Federal Natl Mtg Assn Common Stock - 3,101,216
Federated Dept Stores Inc Common Stock - 2,587,575
Fedex Corp Common Stock - 29,053
First Data Corp Common Stock - 1,281,580
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 4 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Fmc Corp Common Stock - 21,242
Food Technology Svcs Inc Common Stock - 725
Ford Mtr Co Common Stock - 13,519
Freddie Mac Common Stock - 13,162
Frontier Airlines Inc Common Stock - 1,275
Gateway Inc Common Stock - 10,452
Gemstar Tv Guide Intl Inc Common Stock - 8,310
Genentech Inc Common Stock - 13,400
General Elec Co Common Stock - 6,303,915
General Motors Corp Common Stock - 69,045
Genuine Parts Co Common Stock - 886,594
Georgia Pac Corp Common Stock - 1,052,436
Getty Images Inc Common Stock - 1,149
Gilead Sciences Inc Common Stock - 6,572
Global Crossing Ltd Common Stock - 6,401
Global Telesystems Group Inc Common Stock - 8
Goldman Sachs Group Inc Common Stock - 6,985
Goldman Sachs Group Inc Common Stock - 780,551
Goodyear Tire & Rubber Common Stock - 1,656,384
Guidant Corp Common Stock - 1,306,604
Guilford Pharmaceutical Inc Common Stock - 24,000
Gulf Island Fabrication Inc Common Stock - 14,824
H Pwr Corp Common Stock - 3,120
Haemonetics Corp Common Stock - 2,035
Halliburton Co Holding Co Common Stock - 3,930
Harley Davidson Inc Common Stock - 5,431
Harley Davidson Inc Common Stock - 1,328,145
Harmony Gold Mining Co Common Stock - 1,237
HCA Inc Common Stock - 1,698,011
Headwaters Inc Common Stock - 24,066
Healthcare Rlty Tr Common Stock - 5,600
Henry Jack & Assoc Inc Common Stock - 2,184
Hewlett Packard Co Common Stock - 719,900
Home Depot Common Stock - 4,188,263
Honeywell Intl Inc Common Stock - 25,403
Household Intl Inc Common Stock - 2,380,649
Human Genome Sciences Inc Common Stock - 1,517
I2 Tech Inc Common Stock - 8,848
Identix Inc Common Stock - 1,459
Immunex Corp Common Stock - 44,087
Immunogen Inc Common Stock - 11,639
Impco Technologies Inc Common Stock - 12,690
Infospace Com Inc Common Stock - 615
Ingram Micro Inc Common Stock - 253,792
Inktomi Corporation Common Stock - 3,355
Innodata Corp Common Stock - 3,594
Integrated Circuit System Inc Common Stock - 2,259
Integrated Device Tech Inc Common Stock - 5,584
Intel Corp Common Stock - 2,781,222
Interlink Electrs Common Stock - 1,299
International Business Machs Common Stock - 1,712,563
International Paper Co Common Stock - 826,956
Internet Cap Group Inc Common Stock - 4,538
Interpublic Group Cos Inc Common Stock - 1,769,435
Intershop Comm Common Stock - 1,400
Interwave Comm Intl Inc Common Stock - 3,750
Intl Fibercom Inc Common Stock - 275
Intl Paper Co Common Stock - 4,060
Investors Financial Services Corp Common Stock - 3,443
Ion Networks Inc Common Stock - 365
Iridex Corp Common Stock - 956
Ishares Inc Msci Australia Index Fund Common Stock - 7,947
Ishares Tr Dow Jones U S Healthcare Sector Index Common Stock - 31,050
Ishares TR Dow Jones US Finl Sector Index Fd Common Stock - 40,245
Ishares TR S&P Euro Plus 350 Index Fund Common Stock - 15,541
Ishares TR S&P/Topix 150 Index Fd Common Stock - 14,567
J D Edwards & Co Common Stock - 1,645
J P Morgan Chase & Co Common Stock - 45,470
Jabil Circuit Inc Common Stock - 47,939
Jds Uniphase Corp Common Stock - 81,193
Jni Corp Common Stock - 4,155
Johnson & Johnson Common Stock - 2,550,951
Jones Apparel Group Inc Common Stock - 1,228,247
Juniper Networks Inc Common Stock - 205,740
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 5 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
K Mmart Corp Common Stock - 13,650
Kana Software Inc Common Stock - 2,238
Kcs Energy Inc Frmly Kcs Group Common Stock - 1,248
Key3Media Group Inc Common Stock - 6,396
Kimberly Clark Corp Common Stock - 11,063
Kimberly Clark Corp Common Stock - 1,095,322
Kinder Morgan Inc Common Stock - 1,350,865
Kla-Tencor Corp Common Stock - 2,478
Knight Trading Group Inc Common Stock - 1,322
Koala Corp Common Stock - 81
Kohls Corp Common Stock - 5,865,216
Kraft Foods Inc Common Stock - 5,105
Krispy Kreme Doughnuts Inc Common Stock - 4,420
Kroger Co Common Stock - 1,787,340
Lajolla Pharmaceutical Co Common Stock - 894
Lear Corp Common Stock - 1,008,232
Lehmanh Brothers Hldgs Inc Common Stock - 2,056,864
Level 3 Communications Inc Common Stock - 10,000
Liberate Techs Inc Common Stock - 3,444
Liberty Media Corp Common Stock - 2,762,511
Lifecell Corp Common Stock - 409
Lightpath Tech Inc Common Stock - 1,047
Lilly Eli & Co Common Stock - 785
Lincare Hldgs Inc Common Stock - 26,931
Linuxwizardry Sys Inc Common Stock - 16
Lockheed Martin Corp Common Stock - 70,005
London Pac Group Ltd Common Stock - 11,880
Loudcloud Inc Common Stock - 424
Lowes Companies Common Stock - 11,138
Lsi Logic Corp Common Stock - 19,725
Lubrizol Corp Common Stock - 1,413,990
Lucent Tech Inc Common Stock - 64,172
Lyondell Chemical Co Common Stock - 479,547
Marathon Oil Corp Common Stock - 1,603,924
Marchfirst Inc Common Stock - 1
Marconi Plc Common Stock - 5,850
Mattel Inc Common Stock - 34,400
Maxcor Financial Grp Inc Common Stock - 4,708
Maxim Integrated Prods Inc Common Stock - 514,690
Maximus Inc Common Stock - 21,030
May Dept Stores Co Common Stock - 2,603,186
MBIA Inc Common Stock - 1,168,152
MBNA Corp Common Stock - 6,576,535
MCDATA Corp Common Stock - 441
McDonalds Corp Common Stock - 2,647
Mead Corp Common Stock - 659,074
Medical Advisory Sys Inc Common Stock - 490
Medimmune Inc Common Stock - 3,245
Medtronic Inc Common Stock - 1,237,124
Mercator Software Inc Common Stock - 10,241
Merck & Co Inc Common Stock - 102,900
Mercury Interactive Corp Common Stock - 10,194
Merge Technologies Inc Common Stock - 5,720
Merrill Lynch & Co Inc Common Stock - 5,258
Merrill Lynch & Co Inc Common Stock - 1,573,885
Metlife Inc Common Stock - 317
Metro Goldwyn Mayer Inc Common Stock - 2,190
Metromedia Fiber Network Inc Common Stock - 33,000
Micromuse Inc Common Stock - 45,000
Microsoft Corp Common Stock - 5,038,495
Microstrategy Inc Common Stock - 1,540
Millennium Chemicals Inc Common Stock - 466,564
Millennium Pharm Inc Common Stock - 9,804
MIM Corp Common Stock - 3,916
Mirant Corp Nfs Llc Common Stock - 1,650
Morgan ST Dean Witter Discover & Co Common Stock - 2,797
Morgan Stanley Dean Witter & Co Common Stock - 598,157
Motient Corp Common Stock - 431
Motorola Inc Common Stock - 186,135
MRV Communications Common Stock - 424
Murphy Oil Corp Common Stock - 2,101
Mylan Labs Inc Common Stock - 1,522,242
Myriad Genetics Inc Common Stock - 1,053
Nasdaq 100 TR Unit Ser 1 Common Stock - 88,793
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 6 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
National City Corp Common Stock - 1,774,625
Neoforma Common Stock - 4,373
Netsilicon Inc Common Stock - 385
Network Appliance Corp Common Stock - 1,750
New Millennium Media Common Stock - 235
Newell Rubbermaid Inc Common Stock - 5,514
Newmark Homes Corp Common Stock - 1,444
Nexell Therapeutics Inc Common Stock - 1,278
Nextel Comm Inc Common Stock - 7,672
Nokia Corp Common Stock - 66,231
Nokia Corp Common Stock - 5,491,194
Nordic American Tanker Shipping Ltd Common Stock - 1,385
Norfolk Southn Corp Common Stock - 2,336,568
Nortel Networks Corp Common Stock - 46,627
Nortel Networks Corp Common Stock - 1,302,445
Northfield Laboratories Inc Common Stock - 9,439
Novell Inc Common Stock - 459
Nuance Communication Common Stock - 3,185
O Charleys Inc Common Stock - 3,702
O Reilly Automotive Inc Common Stock - 5,471
Occidental Pete Corp Common Stock - 3,464,581
Occidental Petroleum Corp Common Stock - 9,286
OM Group Inc Common Stock - 993
OmniCare Inc Common Stock - 1,009,957
Opentv Corp Common Stock - 827
Oplink Communications Inc Common Stock - 226
Oracle Corporation Common Stock - 96,118
Orchid Biosciences Inc Common Stock - 5,500
Osi Systems Inc Common Stock - 1,824
Owens ILL Inc Common Stock - 470,805
Oxford Health Plans Inc Common Stock - 1,283,159
P & O Princess Cruises PLC Common Stock - 20,880
P F Changs China Bistro Inc Common Stock - 23,650
Pacificare Health Systems Common Stock - 373,663
Palm Inc Common Stock - 78,240
Paradyne Networks Inc Common Stock - 3,822
Parametric Tech Corp Common Stock - 781
Parker Drilling Co Common Stock - 1,107
Paychex Inc Common Stock - 8,364
PDI Inc Common Stock - 2,232
Pfizer Inc Common Stock - 6,988,290
Pharmacia Corp Common Stock 1,957,358
Philip Morris Cos Inc Common Stock - 2,749,560
Phillips Pete Co Common Stock - 5,667,890
PLC Sys Inc Common Stock - 7,440
Plum Creek Timber Co Inc Common Stock - 14,175
Pmc-Sierra Inc Common Stock - 41,457
Portal Software Inc Common Stock - 4,160
Priceline.com Inc Common Stock - 11,640
Proctor & Gamble Co Common Stock - 9,543
Prudential Finl Inc Common Stock - 361,467
Psinet Inc Common Stock - 12
Purchasepro.com Inc Common Stock - 605
Qlogic Corp Common Stock - 4,451
Qualcomm Inc Common Stock - 30,300
Quanta Services Inc Common Stock - 7,715
Quantum Corp Common Stock - 1,085,426
Qwest Communications Intl Inc Common Stock - 249,018
Radioshack Corp Common Stock - 3,010
Rainbow Technologies Inc Common Stock - 1,480
Rambus Inc Common Stock - 1,758
Rare Medium Group Inc Common Stock - 814
Rational Software Cp Common Stock - 878
Red Hat Inc Common Stock - 2,840
Redback Networks Inc Common Stock - 3,042
Repeater Technologie Inc Common Stock - 315
Repligen Corp Common Stock - 487
Republic Svcs Inc Common Stock - 1,927,753
Return Assured Inc Common Stock - 11
RF Micro Devices Inc Common Stock - 3,846
Rite Aid Corp Common Stock - 10,712
S & P 500 Depository Receipt Common Stock - 17,145
Saba Software Inc Common Stock - 2,610
Safeway Inc Common Stock - 1,963,445
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 7 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Sandisk Corp Common Stock - 1,440
Sanmina Corp Common Stock - 1,214
Savvis Commun Corp Common Stock - 570
SBC Communications Common Stock - 47,151
Scana Corp Common Stock - 192,877
Scansoft Inc Common Stock - 10,191
Schering Plough Corp Common Stock - 1,003,402
Schwab Charles Corp Common Stock - 3,094
Scientific Atlanta Common Stock - 2,394
Sears Roebuck & Co Common Stock - 3,318,640
Seitel Inc Common Stock - 4,896
Seracare Life Sciences Inc Common Stock - 990
Serena Software Inc Common Stock - 4,348
Sherwood Brands Inc Common Stock - 4,300
Shurgard Storage CTR Inc Common Stock - 51,200
Sicor Inc Common Stock - 2,352
Siebel Systems Inc Common Stock - 38,473
Slilcon Storage Tech Inc Common Stock - 9,640
Silicon VY Bancshrs Common Stock - 2,673
Singing Machine Co Inc Common Stock - 11,330
Sirius Satellilte Radio Inc Common Stock - 872
Sketchers USA Inc Common Stock - 3,655
Smurfit Stone Container Corp Common Stock - 1,122,618
Socket Comm Inc Common Stock - 840
Solectron Corp Common Stock - 556,169
Solectron Corp Delaware Common Stock - 22,560
Sonus Networks Inc Common Stock - 7,161
Southern Co Common Stock - 254
Southwest Airlns Co Common Stock - 3,696
Spectranetics Corp Common Stock - 9,738
Sprint Corp Common Stock - 2,579,758
SPX Corp Common Stock - 28,749
ST Joe Corp Common Stock - 34,022
Stein Mart Inc Common Stock - 2,675
Stemcells Inc Common Stock - 1,745
Stilwell Financial Inc Common Stock - 404,248
Storagenetworks Inc Common Stock - 1,854
Stratos Lightwave Inc Common Stock - 1,538
Sun Microsystems Inc Common Stock - 601,572
Surebeam Corp Common Stock - 10,470
Sycamore Networks Inc Common Stock - 17,420
Taiwan Semiconductor Manufacturing Co Common Stock - 17,170
Target Corp Common Stock - 1,414,494
Targeted Genetics Corp Common Stock - 542
Taylor Devices Inc Common Stock - 5,700
Tech Data Corp Common Stock - 801,304
Technitrol Inc Common Stock - 4,419
Telephone & Data Sys Inc Common Stock - 844,164
Tellabs Inc Common Stock - 1,882,396
Tellium Inc NFS Llc Common Stock - 20,746
Temple Inland Inc Common Stock - 488,653
Tenet Healthcare Corp Common Stock - 15,854
Tenet Healthcare Corp Common Stock - 1,767,373
Terayon Comm Sys Common Stock - 4,136
Texas Biotech Corp Common Stock - 780
Texas Instruments Inc Common Stock - 491,660
Textron Inc Common Stock - 1,436,700
The Keith Companies Inc Common Stock - 5,090
Thermo Electron Corp Common Stock - 1,322,900
Tioga Technologies Ltd Common Stock - 840
Tivo Inc Common Stock - 1,310
TJX Cos Inc Common Stock - 1,322,059
TMP Worldwide Inc Common Stock - 25,740
Torchmark Inc Common Stock - 1,249,965
Transwitch Corp Common Stock - 6,750
TRC COS Inc Common Stock - 5,000
Triad Hosp Inc Common Stock - 682,880
Trimedyne Inc Common Stock - 4,400
Tripath Technology Inc Common Stock - 1,710
Triquint Semiconductor Inc Common Stock - 24,520
TVX Gold Inc Common Stock - 1,075
Tyco Intl Common Stock - 7,894
Tyco Intl Ltd Common Stock - 6,560,494
U S Phusical Therapy Inc Common Stock - 2,424
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 8 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
UnitedHealth Group Inc Common Stock - 3,804,676
US Airways Grp Inc Common Stock - 539
US Bancorp Common Stock - 1,761,395
Usinternetworking Inc Common Stock - 660
Utstarcom Inc Common Stock - 14,250
V F Corp Common Stock - 1,073,716
V I Technologies Inc Common Stock - 6,255
Valero Energy Corp Common Stock - 517,061
Varian Inc Common Stock - 973
Verisign Inc Common Stock - 7,988
Veritas Software Corp Common Stock - 332,888
Verizon Communications Common Stock - 16,611
Verticalnet Inc Common Stock - 1,540
Viacom Inc Common Stock - 1,752,846
Viasystems Group Inc Common Stock - 5,670
Video Network Communications Inc Common Stock - 460
Vintage Pete Inc Common Stock - 1,445
Viryanet Ltd Common Stock - 88
Vitesse Semiconductr Corp Common Stock - 12,430
Vodafone Group Plc Common Stock - 1,284
Vodafone Group PLC Common Stock - 930,561
Vsource Inc Common Stock - 43
Wachovia Corp 2nd New Common Stock - 2,722,979
Walmart Stores Inc Common Stock - 1,322,535
Walgreen Co Common Stock - 2,192,849
Washington Mut Inc Common Stock - 3,818,690
Washington Mut Inc Common Stock - 166,795
Weatherford Intl Inc Common Stock - 745,183
Wellpoint Health Networks Inc Common Stock - 335,502
Wendys Intl Inc Common Stock - 5,834
Westell Tecnologies Inc Common Stock - 2,640
Western Digital Corp Common Stock - 9,405
Westvaco Corp Common Stock - 1,706,961
Whirlpool Corp Common Stock - 221,437
Wild Oats Markets Inc Common Stock - 993
Williams Cos Inc Common Stock - 51
Wire One Technologies Inc Common Stock - 622
Wisconsin Energy Corp Common Stock - 681,252
Worldcom Inc/Worldcom Grp Common Stock - 5,050,802
Wrigley WM JR Co Common Stock - 5,137
WRP Corp Common Stock - 1,500
Xerox Corp Common Stock - 2,084
XM Satellitel Radio Hldgs Inc Common Stock - 4,131
XO Communications Inc Common Stock - 240
XOMA Ltd Common Stock - 985
XTO Energy Inc Common Stock - 18,386
Yahoo Inc Common Stock - 4,435
Zebra Technologies Corp Common Stock - 5,551
Zimmer Hldgs Inc Common Stock - 458
Zoll Medical Corp Common Stock - 3,889
------------------ ----------------
- $544,830,422
------------------ ----------------
Fixed income securities:
Alberta Energy 9.50% 09/30/2048 - $ 2,635
Anheuser Busch Cos Inc Deb 6.800 8/20/2032 - 619,405
Boeing Cap Corp Sr NT 5.650 5/15/2006 - 689,932
Calpine Corp 8.500 2/15/2011 - 292,048
CitiGroup Inc Global Sr NT 5.750 5/10/2006 - 293,554
CMS Energy Corp 8.75% 07/01/2002 - 3,015
Coca Cola Enterprises Inc Deb 6.950 11/15/2026 - 712,573
Commercial Mtg Accep Corp Ser 1998 C2 Cla 2 6.030 3/15/2008 - 703,706
Continental Airls Pass Thru CTF Ser 1997 4 6.900 1/02/2018 - 875,486
Continental Airls Pass Thru Ser 1998 1 Cl A 6.648 9/15/2017 - 112,495
Countrywide Fdg Corp Mtn Tranche Tr 00244 5.250 6/15/2004 - 685,234
Devon Fing Corp U L C Deb 144A 7.875 9/30/2031 - 777,561
Enron Corp SER A 9% - 83
Erac USA Fin Co GTD NT 144A 7.350 6/15/2008 - 678,909
Fed Hm Ln Pc 6.000 3/01/2031 - 829,014
Fed Hm Ln Pc 6.500 10/01/2016 - 1,945,983
Fed Hm Ln Pc 6.500 3/01/2031 - 2,673,309
Federal Natl Mtg Assn 6.000 5/15/2011 - 703,851
Federal Natl Mtg Assn 7.250 1/15/2010 - 480,560
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 9 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
FNBC 1993 A Pass Thru Tr Pass Thru CTF Ser 1993 A 8.080 1/05/2018 - 367,711
FNMA Pool 6.000 12/01/2013 - 1,548,232
FNMA Pool 6.000 4/01/2028 - 1,731,523
FNMA Pool 6.000 5/01/2016 - 2,231,384
FNMA Pool 6.000 5/01/2031 - 2,155,655
FNMA Pool 6.000 8/01/2031 - 1,520,761
FNMA Pool 6.500 10/01/2028 - 731,476
FNMA Pool 6.500 12/01/2031 - 316,423
FNMA Pool 6.500 5/01/2031 - 919,296
FNMA Pool 6.500 5/01/2031 - 1,119,906
FNMA Pool 6.500 9/01/2031 - 1,558,311
FNMA Pool 7.000 3/01/2015 - 932,322
Ford Cr Auto Owner Tr Ser 2001 B Cl A4 5.120 10/15/2004 - 1,216,249
Ford Mtr Cr Co Global Landmark Secs Globls 6.875 2/01/2006 - 988,474
Gap Inc NT 144A 8.800 12/15/2008 - 157,596
General Elec Cap Corp Mtn Tranche Tr 00482 6.125 2/22/2011 - 602,939
General Mtrs Accep Corp NT 6.875 9/15/2011 - 1,170,210
Georgia Pac Corp NT 7.500 5/15/2006 - 784,324
GMAC Coml Mtg Sec Inc Mtg Pass CTF 1998 C2 Cl A2 6.420 5/15/2035 - 515,003
GNMA Pool 6.500 12/15/2030 - 682,355
GNMA Pool 6.500 6/20/2031 - 1,136,839
LB Coml Conduit Mtg Tr 1999 C1 Cl A2 Mtg Pass Thru 6.780 6/15/2031 - 625,975
Lehmanh Brothers Hldg 7.000 2/01/2008 - 957,739
Merrill Lynch Mtg Invs Inc Mtg Ctf Ser 1998 C2Cl A 1 6.220 2/15/2030 - 132,198
Mirant Americas Generation LLC Sr NT 8.300 5/01/2011 - 230,098
Mirant Americas Generation LLC - 144A Sr NT 144 A 7.200 10/01/2008 - 348,065
Nova Chem Corp 9.50% 12/31/2047 - 2,090
Petroleum Goe Svcs A/A NT 7.500 3/31/2007 - 425,798
Qwest Cap Fdg Inc GTD NT 144A 7.000 8/03/2009 - 679,363
Southwestern Pub Svc Co NT DTD 5.125 11/01/2006 - 232,260
Texaco Cap Inc GTDNT 7.090 2/01/2007 - 77,415
Toys R Us Inc NT 144A 7.625 8/01/2011 - 666,758
Transocean Sedco Forex Inc NT 7.500 4/15/2031 - 745,305
Tyson Foods Inc NT 144A 8.250 10/01/2011 - 650,125
United States Treas Bds 6.625 2/15/2027 - 2,666,141
United States Treas Bds 7.250 8/15/2022 - 418,883
United States Treas Bds 7.500 11/15/2016 - 789,264
United States Treas Nts 5.500 2/28/2003 - 3,039,950
United States Treas Nts 5.875 11/15/2004 - 6,494,197
United States Treas Nts 6.375 8/15/2002 - 858,531
United States Treas Nts 6.500 2/15/2010 - 2,290,169
United States Treas Nts 6.875 5/15/2006 - 1,446,644
US West Cap Fdg Inc Deb 6.875 7/15/2028 - 120,528
Viacom Inc Sr Deb 7.875 7/30/2030 - 867,829
Worldcom Inc GA New NT 8.250 5/15/2031 - 636,012
------------------ -----------------
- $60,867,679
------------------ -----------------
Baxter Global Wrap Account
Cash & Cash Equivalents:
Canadian Dollar Cash - $ 363
Euro Currency Cash - 60,399
Pound Sterling Cash - 717
* State Street Bank & Trust Co. Short Term Investment Fund - 51,217,082
US Treas Bills 0.010 06/20/2002 - 704,063
Fixed Income Securities:
Abbey Natl PLC Deb 7.950 10/26/2029 - $ 111,236
Abbey Natl PLC Sub Reset Cap Secs Prep 1.000 06/29/2049 - 831,267
Abbott Labs NT 5.625 7/01/2006 - 509,789
Abitibi Consolidated Inc Deb 8.850 8/01/2030 - 401,506
Advanta Mtg Ln Tr Ctf Cl A 4 7.750 10/25/2026 - 131,776
AES Corp SR NT 9.375 9/15/2010 - 215,460
AFC Home Equity Ln Tr Ser 1993 2 Cl A 1.000 1/20/2013 - 138,277
Ahold Fin USA Inc GTD NT 8.250 7/15/2010 - 110,258
Ahold Fin USA Inc NT 6.250 5/01/2009 - 293,734
Albertsons Inc NT 7.500 2/15/2011 - 79,946
Albertsons Inc SR Deb 7.450 8/01/2029 - 439,643
All Tel Oh Ltd Partnership GTD NT 144A 8.000 8/15/2010 - 968,595
Allied Waste North America Inc SR NT 7.375 1/01/2004 - 147,834
AMB Ppty LP 2008 NT 7.100 6/30/2008 - 1,976,735
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 10 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Amerada Hess Corp NT 7.300 8/15/2031 - 152,515
American Elec Pwr Inc Sr NT Ser A 6.125 5/15/2006 - 1,212,074
American Gen Fin Corp Mtn Tranche Tr 00324 6.550 6/24/2002 - 945,506
Americredit Automobile Recs Ser 2001 D NT CL A 4 4.410 11/12/2008 - 643,433
Americredit Automobile Recs TR 20001 C NT CL A 4 5.010 7/14/2008 - 799,595
Amerisourcebergen Corp SR NT 144A 8.125 9/01/2008 - 152,675
Amvescap Plc SR NT 144 A 5.900 1/15/2007 - 370,738
Amvescap Plc SR NT 6.600 5/15/2005 - 204,456
AOL Time Warner Inc Deb 7.625 4/15/2031 - 204,923
Aramark Svcs Inc GTD NT 6.750 8/01/2004 - 192,971
Aramark Svcs Inc GTD NT 7.000 7/15/2006 - 533,527
Associates Corp North Amer Sr NT 6.250 11/01/2008 - 1,023,540
AT&T Corp USD Sr NT 144A 6.500 11/15/2006 - 1,008,049
AT&T Corp USD Sr NT 144A 7.300 11/15/2011 - 1,142,828
Avalon Pptys Inc NT 7.375 9/15/2002 - 227,604
Avalonbay Cmntys Inc Tranche Tr 00005 6.625 9/15/2011 - 290,272
Bank One Corp 7.875 8/01/2010 - 1,206,309
BankBoston NA MTN 6.375 3/25/2008 - 4,005,955
Bear Stearns Cos Inc Sr NT 6.250 7/15/2005 - 1,025,357
Boeing Cap Corp SR NT 5.750 2/15/2007 - 272,271
Bombardier Cap Inc Mtn Tranche Tr 00007 144 A 6.125 6/29/2006 - 502,833
Brascan Ltd NT 7.375 10/01/2002 - 203,485
Bristol Myers Squibb Co 4.750 10/01/2006 - 580,208
Burlington Northn Santa Fe 7.125 12/15/2010 - 519,302
Canadian Treas Bill 5.550 4/12/2001 - 1,416,640
Canadian Treas Bill 5.760 3/01/2001 - (540,782)
Canadian Treas Bill 5.870 2/01/2001 - (936,601)
Capital Auto Receivables Asset 2001 Asset Bkd NT Cl A 4 5.000 12/15/2006 421,376
Capital One 2001 7 BKD CTF CL A 3.850 8/15/2007 - 785,213
Centex Home Equity Ln 2000 C Cl A4 7.720 5/25/2029 - 79,016
Chase Manhattan Auto Owner 2001 B Asset BKD NT CL A 4 3.800 5/15/2008 - 387,257
Chase Manhattan Auto Owner Tr Ser 2000 A Cl A3 6.210 12/15/2004 - 317,059
Chase Manhattan Corp New 6.000 11/01/2005 - 1,028,465
Chilgener SA NT 6.500 1/15/2006 - 2,678,509
Chubb Corp NT Dtd 20Nov 01 6.000 11/15/2011 - 485,967
* CitiGroup Inc Mt Sr Nts Tranche Sr 00051 5.625 5/17/2004 - 1,531,437
* Citibank Cr Card Issuance 2001 A8 NT 4.100 12/07/2006 - 390,150
* Citibank Cr Card Issuance NT CL 2001 A6 5.650 6/16/2008 - 611,252
* CitiBank Cr Card Issuance Tr NT Cl 2001 A6 5.650 6/16/2008 - 2,745,541
* CitiBank Cr Card Master Tr 1 1997 6 Partn CTG Cl A ZCP 6.323 8/15/2006 - 1,785,558
* Citibank Cr cord Master Tr I 199902 Partn CTF Cl A 5.875 3/10/2011 - 1,002,002
* CitiGroup Inc 7.250 10/01/2010 - 1,997,113
* CitiGroup Inc 7.250 10/10/2010 - 1,065,127
* CitiGroup Inc NT 6.750 12/01/2005 - 488,861
Citizens Communications Co Sr NT 144A 6.375 8/15/2004 - 503,543
CK Witco Corp SR NT 8.500 3/15/2005 - 25,456
Clear Channel Communications SR NT 7.875 6/15/2005 - 103,971
Clear Channel Communications Sr NT 7.875 6/15/2005 - 519,853
Cleveland Elec Illum Secd NT Ser B 7.670 7/01/2004 - 185,111
CNH Equity Tr 2001 A Asset Bkd NT Cl A 4 5.380 8/15/2007 - 1,521,958
Coastal Corp NT 6.200 5/15/2004 - 1,502,079
Coca Cola Enterprises Inc 8.500 01Feb22 8.500 2/01/2022 - 148,212
Columbia/Healthcare Coep NT 8.360 4/15/2024 - 24,453
Community Program Ln Tr 1987 A Cl A Ser 87 A 4 4.500 10/01/2018 - 1,783,834
Conagra Inc 6.000 9/15/2006 - 507,048
Conoco Fdg Co NT 5.450 10/15/2006 - 104,545
Conoco Fdg Co NT 5.450 10/15/2006 - 632,248
Conoco Fdg Co NT 6.350 10/15/2011 - 502,902
Conoco Inc NT 6.350 4/15/2009 - 502,461
Consolidated Nat Gas Co 5.375 11/01/2006 - 425,266
Cox Communications Inc New NT 7.700 8/15/2004 - 527,400
Cox Communications Inc New NT 7.750 11/01/2010 - 555,405
CS First Boston Mgt Secs Corp Ser 2001 CKN5 Cl A4 5.435 7/15/2011 - 959,098
CSX Corp NT 6.250 10/15/2008 - 174,054
DaimlerChrysler Auto 2001 D Asset Bkd NT Cl A 4 3.780 2/06/2007 - 821,424
Daimlerchrysler Auto Tr 2000 C Asset Bkd NT Cl A 3 6.820 9/06/2004 - 56,459
Daimlerchrysler Na Hldg NT 6.400 5/15/2006 - 937,132
Delhaize Amer Inc NT 8.125 4/15/2011 - 986,380
Dial Corp SR NT 7.000 8/15/2006 - 123,426
Disney Walt Co New Mtn Book Tranche Tr 00042 4.875 7/02/2004 - 1,666,050
DJL Coml Corp COML MTG Passthru CTF 1999 CG 6.080 7/10/2008 - 297,905
Domtar Inc 2016 Deb 9.500 8/01/2016 - 142,430
Domtar Inc NT 8.750 8/01/2006 - 225,689
Donahue Fst Prods Inc SR NT 7.625 5/15/2007 - 200,776
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 11 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Donaldson, Lufkin & Jenrette Inc 2005 Sr NT 6.875 11/01/2005 - 3,922,890
DTE Energy Co NT 7.050 6/01/2011 - 306,299
Duke Cap Corp Sr NT 7.500 10/01/2009 - 943,323
Duke Energy Co SR NT SER A 6.000 12/01/2028 - 171,973
Duke Realty Ltd Partnership NT 7.375 9/22/2005 - 259,495
Duke Weks Realty Corp NT 6.950 3/15/2011 - 99,346
Edperbrascan Corp NT 7.125 12/16/2003 - 117,329
EOP Oper Ltd Partnership NT 7.750 11/15/2007 - 371,130
EOP Oper Ltd Partnership NT 7.875 7/15/2031 - 191,514
Erac USA Fin Co GTD NT 144 A 7.350 6/15/2008 - 498,300
Erac USA Fin Co NT 144A 8.250 5/01/2005 - 294,579
Erac USA Fin Co GTD NT 144A 7.350 6/15/2008 - 996,600
Erac USA Fin Co NT 144A 6.950 3/01/2004 - 1,510,480
Fed Hm Ln Pc G00924 8.000 3/01/2028 - 958,811
Federal Home Ln Mtg Corp 5.250 1/15/2006 - 2,891,080
Federal Home Ln Mtg Corp Deb 3.250 12/15/2003 - 2,481,346
Federal Home Ln Mtg Corp Deb 5.000 5/15/2004 - 1,738,752
Federal Home Ln Mtg Corp Deb 5.250 2/15/2004 - 2,058,618
Federal Home Ln Mtg Corp Preassign 00249 6.000 7/15/2027 - 1,081,883
Federal Home Ln Mtg Corp Reference NT 5.500 9/15/2011 - 38,919
Federal Home Ln Mtg Corp Deb 6.875 1/15/2005 - 4,037,948
Federal Home Ln Mtg Corp - Ser 1819 Cl 1819 E Ser 1819 Cl 1819 E 6.000 2/15/2011 - 3,044,166
Federal Home Ln Mtg Corp - Ser 2059 Cl Ha Ser 2059 Cl HA 5.750 12/15/2025 - 388,511
Federal Home Ln Mtg Corp - Ser 2078 Cl Pa Ser 2078 Cl Pa 6.000 12/15/2018 - 273,751
Federal Home Ln Mtg Corp GTD - Preassign 00392 Preassign 00392 6.000 4/15/2025 - 989,281
Federal Home Ln Mtg PC GTD Ser 1404 FA 4.500 11/15/2007 - 1,639,216
Federal Home Ln Mtg PC GTD Ser 1629 Cl 1629 HA 3.500 12/15/2021 - 1,290,462
Federal Home Ln Mtg PC GTD Ser 1673 Cl 1673 H 6.000 11/15/2022 - 1,819,243
Federal Home Ln Mtg PC GTD Ser 1861 Cl 1861 G 6.500 11/15/2021 - 3,248,095
Federal Home Ln Mtg PC GTD Ser 1921 Cl 1921 C 6.500 7/15/2024 - 1,221,396
Federal Natl Mtg Assn 4.375 10/15/2006 - 2,139,892
Federal Natl Mtg Assn 4.750 3/15/2004 - 356,567
Federal Natl Mtg Assn 5.000 1/15/2007 - 2,223,392
Federal Natl Mtg Assn 5.375 11/15/2011 - 1,226,314
Federal Natl Mtg Assn 5.625 5/14/2004 - 6,782,344
Federal Natl Mtg Assn 6.000 5/15/2011 - 2,019,514
Federal Natl Mtg Assn 7.000 7/15/005 - 1,614,715
Federal Natl Mtg Assn Benchmark NT 5.125 2/13/2004 - 7,574,019
Federal Natl Mtg Assn NT 6.000 5/15/2008 - 2,063,583
Federal Natl Mtg Assn - Preassign 00418 Preassign 00418 6.000 7/25/2026 - 2,971,567
Federal Natl Mtg Assn - Remic Tr 1999 28 Cl Ph Remic TR 1999 28 Cl Ph 6.000 3/25/2023 - 5,497,945
Federal Natl Mtg Assn - Ser 1996 7 Cl H Ser 1996 7 Cl H 6.500 12/25/2023 - 1,315,511
Federal Natl Mtg Assn GTD Remic Tr 1998 30 Cl B 6.500 8/20/2024 - 1,906,104
Federal Natl Mtg Assn GTD - Remic Tr 1998 40 Cl C Remic TR 1998 40 CL C 6.500 4/18/2026 - 2,865,789
Federal Natl Mtg Assn Mtn 6.060 2/03/2006 - 2,603,772
Federal Natl Mtg Assn Remic Remic Tr 1994 63 Cl Pg 6.750 5/25/2021 - 522,632
FHLMC TBA Feb 15 Gold Single 6.000 - 2,729,917
FHLMC TBA Feb 15 Gold Single 6.500 - 4,137,479
FHLMC TBA Feb 15 Gold Single 7.000 - 5,635,641
FHLMC TBA Jan 30 Gold Single 6.000 - 4,720,087
First Data Corp Sr NT 5.625 11/01/2011 - 474,522
FirstBank PR Sub Cap NT 7.625 12/20/2005 - 1,670,029
Firstenergy Corp NT Ser B 6.450 11/15/2011 - 758,317
Fleet Cr Card Master 2001 C CTF Cl A 144A 3.860 3/15/2007 - 810,013
Fleetboston Finl Corp Sr NT 4.875 12/01/2006 - 917,417
Fleetboston Finl Corp Sr NT 7.250 9/15/2005 - 427,505
FNMA TBA Jan 15 Single Fam 6.500 - 7,450,156
FNMA TBA Jan 15 Single Fam 6.000 - 403,172
FNMA TBA Jan 15 Single Fam 7.000 - 6,809,968
FNMA TBA Jan 30 Single Fam 6.000 - 611,711
FNMA TBA Jan 30 Single Fam 6.500 - 15,217,801
FNMA Pool 254088 5.500 12/01/2016 - 996,896
FNMA Pool 323348 8.500 6/01/2012 - 449,294
FNMA Pool 5.500 4/01/2011 - 1,396,533
FNMA Pool 5.500 5/01/2011 - 166,613
FNMA Pool 6.000 12/1/2028 - 1,148,861
FNMA Pool 6.000 5/01/2028 - 1,773,358
FNMA Pool 6.000 8/01/2031 - 504,921
Ford Cr Auto Owner 2000 C NT Cl A 5 7.260 7/15/2004 - 392,858
Ford Cr Auto Owner Ser 2001 E Cl A4 4.010 3/15/2006 - 841,633
Ford Cr Auto Owner Tr 1999 D Asset Bkd NT Cl B 6.870 01/15/2004 - 413,336
Ford Mtr Co Del BD 6.375 2/01/2029 - 719,155
Ford Mtr Cr Co CDT 5.800 1/12/2009 - 1,170,065
Ford Mtr Cr Co Global NT 7.600 8/01/2005 - 510,732
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 12 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Ford Mtr Cr Co Globalo Landmark Secs Globls 6.500 1/25/2007 - 679,568
Ford Mtr Cr Co Global Landmark Secs Globls 6.700 7/16/2004 - 701,415
General Elec Cap Corp Mtn Tranche Tr 00462 6.750 9/11/2003 - 684,303
General Elec Cap Corp Mtn Tranche Tr 00473 6.875 11/15/2010 - 535,190
General Mtrs Accep Corp NT 6.875 9/15/2011 - 1,233,435
General Mtrs Accep Corp NT 6.875 9/15/2011 - 1,942,417
General Mtrs Accep Corp Mtn Tranche Tr 00596 6.380 1/30/2004 - 1,017,582
GNMA I TBA Jan 30 Single Fam 6.500 12/15/2099 - 1,913,128
GNMA Pool 358726 8.000 8/15/2023 - 713,473
GNMA Pool 538285 6.500 12/15/2031 - 3,527,295
GNMA Pool 552247 6.500 12/15/2031 - 423,475
GNMA Pool 567214 6.500 10/15/2031 - 1,160,819
Goldman Sachs Group Inc NT Ser B 7.800 1/28/2010 - 923,268
Green Tree Finl Corp - 1999 2 Mfd Hsg Sr Sub Pa 1999 2 MFD HSG Sr Sub PA 6.080 12/01/2030 - 836,892
GS Escrow Corp SR NT 7.000 8/01/2003 - 628,349
GS Escrow Corp SR NT 7.125 8/01/2005 - 296,984
HCA Healthcare Co NT 8.750 9/01/2010 - 80,620
Household Fin Corp NT 5.875 09/25/2004 - 2,709,933
Household Fin Corp NT 6.500 11/15/2008 - 442,780
International Flavors & Frag NT 6.450 5/15/2006 - 96,541
International Paper Co NT 6.750 09/01/2011 - 124,993
International Paper Co NT 6.750 9/01/2011 - 194,989
Intl Bk For Recon & Dev US Global NT 5.000 3/28/2006 - 731,505
JP Morgan Chase 6.750 2/01/2011 - 2,702,497
JP Morgan Chase Coml Mts Secs 2001 CIBC1 Passthru 2001 Cibc1 Mtg Passthru Cl A3 6.260 03/15/2033 - 747,895
Kellogg Co Deb Ser B 7.450 4/01/2031 - 107,101
Keyspan Corp 7.250 11/15/2005 - 1,360,292
Kraft Foods Inc Global NT 4.625 11/01/2006 - 612,212
Kraft Foods Inc Global NT 5.625 11/01/2011 - 568,057
Kroger Co SR NT 7.625 9/15/2006 - 80,702
LB UBS Coml Mtg 2001 C3 Mtg CTF Cl A 1 6.058 6/15/2020 - 200,150
Lear Corp SR NT Ser B 7.960 5/15/2005 - 80,312
Lehman Brothers Inc - NT NT 6.500 4/15/2008 - 707,435
Lehman Brothers Inc - SR Sub NT Sr Sub NT 7.360 12/15/2003 - 794,138
Liberty Media Corp SR Deb 8.250 2/01/2030 - 164,293
Lockheed Martin Corp Deb 8.500 12/01/2029 - 415,783
MBNA Cr Cardf Master Nt Tr 2001 1 NT Cl A 5.750 10/15/2008 - 3,356,787
Merey Sweeny LP SV BD 144A 8.850 12/18/2019 - 1,054,134
Merrill Lynch & Co Inc Tranch Tr 00218 5.350 6/15/2004 - 1,786,225
Merrill Lynch & Co Mtn Tranche Tr 00012 7.250 7/26/2002 - 874,907
Meyer Fred Inc Del NT 7.450 3/01/2008 - 52,597
Morgan Stanley Cap I Inc Coml Mtg Ctf 1999 RM1 Cl E 1.000 12/15/2031 - 377,128
Morgan Stanley Dean Witter Cap 2001 IQ Mtg Ctf Cl A 1 4.570 12/18/2032 - 383,477
Morgan Stanley Group Inc 6.100 4/15/2006 - 511,740
Morgan Stanley Group Inc 6.100 4/15/2006 - 1,330,524
Mortan Stanley Group Inc 6.750 4/15/2011 - 508,086
Motorola NT 6.750 02/01/2006 - 498,225
National City Corp Sub Deb 6.875 5/15/019 - 272,771
National Westminster Bk Plc Reset Sub NT 7.750 4/29/2049 - 795,218
News Amer Hldgs Inc GTD Sr Deb 9.500 7/15/2024 - 404,946
Niagara Mohawk Pwr Corp 1st Mtg DTD 5/15/95 7.750 5/15/2006 - 80,532
Nisource Fin Corp GTD NT 7.625 11/15/2005 - 102,939
Nisource Fin Corp GTD NT 7.875 11/15/2010 - 333,767
Nomura Asset Secs Corp - 94 2 Cl 2A 94 2 CL 2A 7.500 5/25/2024 - 365,537
Norfolk Southn Corp NT 7.800 5/15/2027 - 81,674
Norfolk Southn Corp SR NT 7.250 2/15/2031 - 204,825
Nortel Networks Ltd NT 6.125 2/15/2006 - 194,222
Northrop Grumman Corp Deb 7.750 2/15/2031 - 320,554
NWA Tr No 1 Sr Aircraft NT Cl A 8.260 3/10/2006 - 463,405
NWA Tr No 1 Sr Aircraft NT Cl B 9.360 3/10/2006 - 460,403
Occidental Pete Corp SR NT 8.450 2/15/2029 - 449,478
Ontario Prov CDA BD 5.500 10/1/2008 - 498,037
PDVSA Fin Ltd NT 144A 6.800 11/15/2008 - 1,882,005
Petrleos Mexicanos Medium Term Tranche Tr 00003 8.625 12/01/2023 - 698,331
Philip Morris Cos Inc NT 6.375 2/01/2006 - 2,835,999
Phillips Pete Co Deb 6.650 7/15/2018 - 146,386
Pinnacle One Partners LP SR NT 144A 8.830 8/15/2004 - 354,760
Pioneer Nat Res Co Sr NT 6.500 1/15/2008 - 1,374,071
Principal Residential Mtg Cap 2001 3 Term NT Cl A 1 144 A 4.550 12/20/2004 - 506,433
Progress Energy Inc Sr NT 5.850 10/30/2008 - 484,884
Progress Energy Inc SR NT 7.100 3/01/2011 - 103,068
Protective Life US Fdg Tr Fdg Agreement Backed NT 144A 5.875 8/15/2006 - 497,222
Provident Cos Inc Sr NT 6.375 7/15/2005 - 1,706,171
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 13 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Prudential Ins Co Amer Sr NT 144A 6.375 7/23/2006 - 512,023
PSEG Energy Hldgs Inc Sr NT 8.500 6/15/2011 - 884,026
Pseg Energy Hldgs Inc Sr NT 9.125 2/10/2004 - 519,128
Pulte Homes Inc SR NT 144A 7.875 8/01/2011 - 123,363
Quest Diagnostics Inc SR NT 6.750 7/12/2006 - 193,603
Qwest Cap Fdg Inc NT 7.250 2/15/2011 - 314,823
Qwest Communications Intl Inc SR NT 7.500 11/01/2008 - 49,577
Raytheon Co Deb 6.000 12/15/2010 - 476,881
Republic Svcs Inc 6.750 8/15/2011 - 149,238
Royal Carribbean Cruises Ltd SR NT 7.000 10/15/2007 - 138,152
Royal Carribbean Cruises Ltd SR NT 8.750 2/02/2011 - 221,192
Sears Roebuck Accep Corp NT 6.250 5/01/2009 - 365,380
Sears Roebuck Accep Corp NT 6.750 8/15/2011 - 1,235,944
Simon Ppty Group LP NT 6.375 11/15/2007 - 171,993
Skandinaviska Enskilda Banken Sub NT Step Up 144A 6.5 12/29/2049 - 534,851
South Africa Rep NT 8.500 6/23/2017 - 2,530,177
Southern Natl Corp N C 7.050 5/23/2003 - 103,773
Sprint Cap Corp 7.625 1/30/2011 - 1,156,058
Sprint Cap Corp NT 6.125 11/15/2008 - 169,028
Sprint Cap Corp NT 6.875 11/15/2028 - 190,741
Sprint Cap Corp NT DTD 6.000 1/15/2007 - 197,471
Sprint Cap Corp 5.700 11/15/2003 - 2,543,657
Sprint Cap Corp - NT NT 6.875 11/15/2028 - 454,146
Stagecoach Hldgs Plc NT 8.625 11/15/2009 - 134,078
Standish, Ayer & Wood Invt Intl Fixed Income FD - 2,528,650
* State Street Bank & Trust Co - ST Investment Fund 1.000 12/30/2030 - 7,024,097
Telekom Malaysia Berhad Deb 144A 7.875 8/01/2025 - 1,950,376
Telus Corp NT 7.500 6/01/2007 - 155,041
Telus Corp NT 8.000 6/01/2011 - 209,429
Tenet Healthcare Corp SR NT 144A 5.375 11/15/2006 - 644,183
Tricon Global Restaurants Inc SR NT 7.650 5/15/2008 - 274,442
Tricon Global Restaurants Inc SR NT 8.875 4/15/2011 - 210,517
TRW Inc Deb 7.750 6/01/2029 - 93,366
TRW Inc NT 6.050 1/15/2005 - 1,464,782
TRW Inc NT 6.625 6/01/2004 - 384,560
TRW Inc NT 7.125 6/01/2009 - 962,689
TXU Corp Sr NT 6.375 6/15/2006 - 918,498
Tyco Intl Group SA GTD NT 6.375 2/15/2006 - 334,078
Tyco Intl Group SA GTD NT 6.375 2/15/2006 - 1,386,931
Tyco Intl Group SA GTD NT 6.875 1/15/2029 - 189,861
Union Planters Corp Sub NT 7.750 3/01/2011 - 342,629
United States Treas Bds 5.375 2/15/2031 - 391,431
United States Treas Bds 6.250 5/15/2030 - 13,384,393
United States Treas Bds 8.000 11/15/2021 - 2,652,449
United States Treas Nts 2.750 10/31/2003 - 2,427,534
United States Treas Nts 3.000 11/30/2003 - 1,490,446
United States Treas Nts 4.625 5/15/2006 - 6,627,802
United States Treas Nts 5.125 12/31/2002 - 3,345,060
United States Treasury Nts 3.000 11/30/2003 - 12,917,197
United States Treasury Nts 3.500 11/15/2006 - 9,091,581
United States Treasury Nts 5.000 8/15/2011 - 5,840,391
Univision Communications Inc SR NT 7.850 7/15/2011 - 266,004
Unum Corp NT 6.750 12/15/2028 - 309,356
US Bancorp Mtn Bk Ent Medium Term NTS Book Entry 6.875 12/01/2004 - 449,210
US Bancorp Mtn Bk Ent Tranche TR 00119 6.000 5/15/2004 - 155,295
US Treas Bds 10.375 11/15/2012 - 4,732,910
US Treas Nts 5.000 8/15/2011 - 410,807
US Treas Nts 5.750 8/15/2003 - 11,819,757
US Treas Nts 5.875 11/15/2004 - 1,524,002
US Treas Nts 6.500 10/15/2006 - 2,715,931
US Treas Nts 6.500 5/31/2002 - 172,028
US West Cap Fdg Inc NT 6.125 7/15/2002 - 1,001,207
US West Cap Fdg Inc NT 6.375 7/15/2008 - 609,411
USAA Auto Owner 2001 2 Asset Bkd NT Cl A 4 3.910 4/16/2007 - 415,061
Verizon Global Fdg Corp NT 7.250 12/01/2010 - 738,096
Verizon Global Fdg Corp NT 7.750 12/01/2030 - 368,963
Verizon New Eng Inc Deb 6.500 9/15/2011 - 504,948
Verizon Wireless Cap LLC NT 144A 1.000 12/17/2003 - 2,034,642
Viacom Inc SR NT 6.400 1/30/2006 - 143,866
Wal Mart Stores Inc NT 6.875 8/10/2009 - 37,263
Washington Mut Fin Corp Sr NT 6.250 5/15/2006 - 878,862
Washington Mut Fin Corp Sr NT 6.875 5/15/2011 - 960,681
Waste Mgmt Inc Del SR NT 6.500 11/15/2008 - 73,760
Waste Mgmt Inc Del SR NT 6.875 5/15/2009 - 173,103
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 14 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Waste Mgmt Inc Del SR NT 7.375 8/01/2010 - 546,085
Wells Fargo & Co NT 6.625 7/15/2004 - 52,548
Wells Fargo Bk NA NT Dtd 6.450 2/01/2011 - 761,056
Wellsford Residential Ppty NT 9.375 2/01/2002 - 399,097
Westinghouse Cr Corp 8.875 6/14/2014 - 469,668
Westinghouse Elec Corp NT 8.375 6/15/2002 - 1,019,161
Westvaco Corp Deb 7.950 2/15/2031 - 112,465
Westvaco Corp Deb 8.200 1/15/2030 - 21,015
WFS Finl Owner Ser 2001 C Cl A4 5.180 3/20/2009 - 276,490
Worldcom Inc NT 6.500 5/15/2004 - 2,552,743
Worldcom Inc NT 8.000 5/15/2006 - 330,488
Worldcom Inc NT 8.250 5/15/2031 - 340,293
Worldcom Inc GA NT 6.400 8/15/2005 - 1,011,793
Worldcom Inc Ga New NT 7.500 5/15/2011 - 899,971
------------------ -----------------
- $442,382,261
------------------ -----------------
Pacific Investment Management Co.
Fixed income securities:
American Resid Mtg Ln Tr 98 1 AssBkd CTF Cl A 1.000 5/25/2029 - $ 2,306
Bear Stearns Arm Tr 2001 9 Mtg Pass Thru Cl IA VA 1.000 1/25/2032 - 2,031,470
British Telecommunications Plc 7.875 12/15/2005 - 1,065,335
* CitiCorp Mtg Secs Inc 2001 18 RMC Pthru Ctf Cl IA 1 4.150 12/25/2031 - 989,281
Columbia/HCA Healthcare Corp Tranche Tr 00003 8.130 8/4/2003 - 413,221
CRD Dft Swp Worldcom SWPC01518 B 1.450 11/2/2002 - (794,404)
CRD Dft Swp Worldcom 1.45PCT SWPC01518 A 1.450 11/25/2002 - 794,404
El Paso Corp Sr NT 7.000 5/15/2011 - 388,094
Federal Home Ln Mtg Corp Preassign 00070 5.750 6/15/2021 - 4,050,189
Federal Home Ln Mtg PC GTD Remic Ser 32 Cla PH 6.500 9/25/2022 - 6,903,867
Federal Natl Mtg Assn Remic Tr 1999 27 Cl Cb 6.000 7/25/2019 - 2,034,409
Govt Natl Mtg Assn GTD Ser 2001 12 Clz 6.681 7/16/2040 - 1,613,639
Govt Natl Mtg Assn GTD Remic Remic Tr 1999 38 Sec Cl Cb 6.750 5/16/2026 - 831,987
Mid St Tr IV Asset Backed NT 8.330 4/01/2030 - 1,867,583
Occidental Pete Corp Sr NT 1.000 4/01/2003 - 1,522,947
Pimco Fds Pac Invt Mgmt Private Acct Portfolio - 2,111,528
Pimco Fds Pac Invt Mgmt Ser High Yield Portfolio Instl Cl - 233,223
Pimco Fds Pac Invt Mgmt Ser Intl Portfolio Instl Cl - 1,959,271
Pimco Fds Pac Invt Mgmt Ser Invt Grade Corp Port Instl Cl - 21,573,209
Pimco Fds Pac Invt Mgmt Ser Mtg Portfolio Instl Cl - 23,128,166
Pimco Fds Pac Invt Mgmt Ser Real Return BD Portfolio Cl - 28,992
Small Business Admin Deb Ser 1999 20 K 7.060 11/01/2019 - 1,024,374
Small Business Admin Deb Ser 1999 20 L 7.190 12/01/2019 - 1,626,009
* State Street Bank & Trust Co - ST Investment Fund 1.000 12/31/2030 - 2,273,269
United Airls Pass Thru TRS Pass Thru CTF Ser 1995 A2 9.560 10/19/2018 - 590,307
US Treas Bds 5.500 8/15/2028 - 2,876,596
US Treas Nts 3.875 1/15/2009 - 330,184
US Treas Nts Inflation Indexed 3.375 1/15/2007 - 2,233,297
US Treas Nts Inflation Indexed 3.625 1/15/2008 - 883,173
------------------ -----------------
- $ 84,585,926
------------------ -----------------
Benefit responsive interest rate wrapper contracts:
Aegon Institutional Markets open ended maturity - $(48,359,627)
* State Street Bank & Trust Co. open ended maturity - (1,120,660)
------------------ -----------------
- $(49,480,287)
------------------ -----------------
Commingled investments:
American Century 20th Century Ultra Commingled investments - $ 6,634
American Century Small Cap Value Commingled investments - 26,326
Ameristock Mutual Fund Commingled investments - 1,359
Ariel Growth Class A Commingled investments - 77,646
Artisan Internat'l Commingled investments - 124,543
ARTISAN MID CAP VALUE Commingled investments - 14,116
Artisan MID CAP Value Commingled investments - 5,535
Berger MID CAP Value Commingled investments - 6,716
Berger Small CAP Val Retail Commingled investments - 5,575
Berkshire Focus Fund Commingled investments - 37,748
Bjurman All CAP Growth Commingled investments - 24,620
Bjurman Micro CAP Growth Commingled investments - 1,164
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 15 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
Black Oak Emerging Technology Fund Commingled investments - 305
Brazos Micro CAP Growth Commingled investments - 526
Bridgeway Aggressive Growth Commingled investments - 28,072
Buffalo Small CAP Growth Commingled investments - 4,446
Calamos Growth Class A Commingled investments - 897
Calvert Income Fund Class A Commingled investments - 16,364
Clipper Commingled investments - 30,959
Columbia Strategic Value FD Commingled investments - 3,419
Dodge & Cox Stock Commingled investments - 8,314
Dredner RCM Biotechnology N Commingled investments - 12,423
Dresdner RCM Global Health Care N Commingled investments - 58,567
Dresdner RCM Global Technology Class N Commingled investments - 1,198
Dresdner RCM Technology Fund Commingled investments - 3,773
Dreyfus Midcap Value Fund Commingled investments - 13,651
Dreyfus S&P 500 Index Fund Commingled investments - 25,120
Eaton Vance Worldwide Health Sciences Class A Commingled investments - 5,070
Evergreen Healthcare Class C Commingled investments - 1,575
Excelsior Income Business & Indl Restructing FD Commingled investments - 5,268
Excelsior Real Estate Commingled investments - 21,416
Fidelity Convertible Securities Commingled investments - 21,826
Fidelity Diversified International Commingled investments - 95,500
Fidelity Dividend Growth Commingled investments - 184,576
Fidelity Equity Income II Commingled investments - 9,711
Fidelity Export & Mulitinational Commingled investments - 2,833
Fidelity Growth & Income Commingled investments - 25,175
Fidelity Large Capital Stock Commingled investments - 7,721
Fidelity MID CAP Stock Commingled investments - 35,323
Fidelity Real Estate Investment Commingled investments - 16,595
Fidelity Small Cap Stock Commingled investments - 12,630
Fidelity Worldwide Commingled investments - 5,303
Firsthand Global Technology Commingled investments - 286
Firsthand Technology Value Commingled investments - 521
Franklin Biotech Discovery Fund A Commingled investments - 2,437
Fundamental Investors Commingled investments - 2,002
Growth Fund of America Commingled investments - 1,952
Heartland Group Value Plus Commingled investments - 3,015
Icon Technology Commingled investments - 45,080
Invesco Dynamics N/C Commingled investments - 5,094
Invesco Technology N/C Commingled investments - 5,309
Invesco Telecomm #39 N/C Commingled investments - 1,788
Janus Fund 2 Commingled investments - 1,819
Janus Inv't Balanced Commingled investments - 25,244
Janus Inv't Mercury Commingled investments - 1,959
Janus Strategic Value Fund Commingled investments - 8,962
Liberty Acorn Class Z N/C Commingled investments - 2,672
Loomis Sayles Bond Commingled investments - 4,478
Lord Abbett Affiliated Class C Commingled investments - 22,494
Lord Abbett Research Small CAP Class C Commingled investments - 24,307
Masters Select Equity Commingled investments - 47,870
Matthews Intl FDS PAC Tiger FD Commingled investments - 12,324
Muhlenkamp Fund Commingled investments - 5,181
Navellier Perf Fund AGG Small Cap Equity Commingled investments - 5,038
Needham Growth Fund Commingled investments - 1,497
Neuberger & Berman Genesis Trust Commingled investments - 25,106
Oakmark Balanced Commingled investments - 35,324
Oakmark Fund Commingled investments - 7,283
Oakmark Global Fund 1 Commingled investments - 5,497
Oakmark Internat'l Commingled investments - 4,725
Oakmark sSelect Commingled investments - 70,810
Oakmark Small CAP Commingled investments - 2,789
PBHG Large CAP 20 Commingled investments - 5,248
PBHG Large CAP Value Commingled investments - 33,125
PBHG Mid CAP Value Commingled investments - 3,199
PBHG Small Cap Value Commingled investments - 5,191
Pimco Real Return Bond Class D Commingled investments - 1,921
Pin Oak Aggressive Stock Commingled investments - 5,461
Potomac Internet Short Fund Commingled investments - 744
Putnam Health Sciences Trust CL B Commingled investments - 445
Putnam New Opportunities CL B Commingled investments - 1,494
Rainier INVT Fund Small MID CAP Equity Commingled investments - 12,216
Red Oak Technology Select Commingled investments - 409
Royce Low Priced Stock Fund Commingled investments - 129,519
Royce Opportunity Fund Commingled investments - 15,197
Royce Total Return Commingled investments - 28,129
Baxter International Inc. and Subsidiaries Schedule I
Incentive Investment Plan Page 16 of 16
Form 5500, Schedule H, Part IV 4i-Schedule of Assets Held for
Investment Purposes
December 31, 2001
RS Global Natural Resources N/C Commingled investments - 2,449
RS Partners N/C Commingled investments - 2,695
Rydex Biotechnology INV Class Commingled investments - 1,020
Safeco Growth Commingled investments - 33,966
Select Electronics Commingled investments - 1,275
Selected American Shares Commingled investments - 11,730
Spartan Market Index Commingled investments - 7,794
SSGA Money Market Fund Commingled investments - 4,507,189
* State Street Bank & Trust Co. International EAFE Equity Index Fund - 19,461,724
* State Street Bank & Trust Co. S & P 500 Equity Index Fund - 139,339,773
* State Street Bank & Trust Co. Small Cap Fund - 12,964,513
Strong Index 500 Commingled investments - 25,136
Strong Limited Resources Commingled investments - 2,157
Strong Opportunity Income Commingled investments - 2,188
T Rowe Price Balanced Commingled investments - 25,187
T Rowe Price Science & Technology Commingled investments - 3,003
T Rowe Price Small CAP Stock Commingled investments - 2,710
TCW Galileo Value Opport Class 1 Commingled investments - 3,486
Third Avenue Real Estate Value Commingled investments - 16,920
Third Avenue Value FD Commingled investments - 145,873
Tweedy Browne Global Value Fund Commingled investments - 109,982
Value Line Convertible Commingled investments - 46
Value Line Leveraged Growth Income Commingled investments - 47,079
Vanguard Bond index Total Market Commingled investments - 34,429
Vanguard GNMA Fixed Income Securities Commingled investments - 69,150
Vanguard High Yield Bond Fixed Income Commingled investments - 2,968
Vanguard Index Trust S&P 500 Port Commingled investments - 25,125
Vanguard Inflation Protectede Secs Commingled investments - 12,391
Vanguard intermdiaate Term Treasury Admiral Commingled investments - 24,673
Vanguard Reit Index Fund Commingled investments - 3,229
Vanguard Specialized Engergy Port Commingled investments - 43,753
Vanguard Total Stock Market Commingled investments - 13,159
Vanguard US Growth Portfolio Commingled investments - 2,346
Vanguard/Wellesley Income Income Commingled investments - 3,011
Vanguard/Windsor II Portfolio Commingled investments - 2,933
Wasatch Aggressive Equity Commingled investments - 23,976
Wasatch Growth Commingled investments - 13,767
Wasatch Microcap Value Commingled investments - 6,326
Weitz Partners Value Commingled investments - 1,987
Weitz Value Commingled investments - 190,880
White Oak Growth Stock Commingled investments - 27,167
Whitehall Growth Commingled investments - 2,401
Yacktman Focused FD Commingled investments - 4,385
------------------ -----------------
- $ 178,841,650
------------------ -----------------
* Participant Loans Interest rate range from 5.75%
to to 10.67% - $ 29,458,270
------------------ -----------------
- $1,337,648,433
================== =================
* Party-in-interest
Note - Cost information is omitted for participant directed investments.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Plan Administrator has duly caused this annual report to be signed on its behalf
by the undersigned thereunto duly authorized.
BAXTER INTERNATIONAL INC. AND SUBSIDIARIES
INCENTIVE INVESTMENT PLAN
Date: June 27, 2002 By: /S/ Brian P. Anderson
---------------------
Brian P. Anderson
Senior Vice President and
Chief Financial Officer
CONSENT OF INDEPENDENT ACCOUNTANTS
----------------------------------
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (Nos. 2-82667, 2-86993, 2-97607, 33-8812, 33-8813,
33-15523, 33-15787, 33-28428, 33-33750, 33-54069, 333-43563, 333-47019,
333-71553, 333-80403, 333-88257, 333-48906 and 333-62820) of Baxter
International Inc. of our report dated June 14, 2002 relating to the financial
statements of Baxter International Inc. and Subsidiaries Incentive Investment
Plan, which appears in this Form 11-K.
PricewaterhouseCoopers LLP
Chicago, Illinois
June 27, 2002