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Baxter International Inc – ‘11-K’ for 12/31/05

On:  Thursday, 6/29/06, at 3:47pm ET   ·   For:  12/31/05   ·   Accession #:  950137-6-7441   ·   File #:  1-04448

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 6/29/06  Baxter International Inc          11-K       12/31/05    2:949K                                   Bowne Boc/FA

Annual Report of an Employee Stock Purchase, Savings or Similar Plan   —   Form 11-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 11-K        Annual Report                                       HTML    758K 
 2: EX-23       Consent                                             HTML      7K 


11-K   —   Annual Report
Document Table of Contents

Page (sequential) | (alphabetic) Top
 
11st Page   -   Filing Submission
"Report of Independent Registered Public Accounting Firm
"Statements of Net Assets Available for Benefits as of December 31, 2005 and 2004
"Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 2005 and 2004
"Notes to Financial Statements
"Schedule I: Schedule of Assets (Held at End of Year) as of December 31, 2005

This is an HTML Document rendered as filed.  [ Alternative Formats ]



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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
     
þ   ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the year ended December 31, 2005
OR
     
o   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 Schedules
December 31, 2005 and 2004

 



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Index
December 31, 2005 and 2004
 
         
    Page(s)  
 
       
    1  
 
       
Financial Statements
       
 
       
    2  
 
       
    3  
 
       
    4 - 10  
 
       
Supplemental Information
       
 
       
    11 - 35  
 
       
    36  
     
Note:
  Other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

 



 

Report of Independent Registered Public Accounting Firm
To the Participants and 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, 2005 and 2004, 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 at End of Year) and Schedule of Reportable Transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are 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. These supplemental schedules are the responsibility of the Plan’s management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Chicago, Illinois
June 26, 2006

1



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Statements of Net Assets Available for Benefits
December 31, 2005 and 2004
 
                 
    2005     2004  
 
Assets
               
Investments
               
At fair value
               
Cash and cash equivalents
  $ 31,118,478     $ 17,031,156  
Common stock (including securities on loan of $19,097,230 in 2005 and $4,588,738 in 2004)
    461,907,223       443,706,240  
U.S. government and government agency issues
    35,492,806       20,894,961  
Corporate and other obligations (including securities on loan of $11,742,965 in 2005 and $27,263,093 in 2004)
    38,886,788       54,313,548  
Commingled funds
    298,634,721       278,844,419  
Registered investment companies
    11,663,581       14,471,958  
Participant loans
    29,575,488       28,645,973  
Collateral held on loaned securities
    126,971,898       179,421,136  
 
 
    1,034,250,983       1,037,329,391  
 
At contract value
               
Synthetic guaranteed investment contracts (including securities on loan of $93,799,223 in 2005 and $144,401,414 in 2004)
    571,960,001       556,651,032  
 
Total investments
    1,606,210,984       1,593,980,423  
 
Receivables
               
Accrued interest and dividends
    2,984,702       3,611,550  
Due from brokers for securities sold
    235,820       879,289  
 
 
    3,220,522       4,490,839  
 
Total assets
    1,609,431,506       1,598,471,262  
 
Liabilities
               
Accounts payable
    2,747,092       2,522,813  
Due to brokers for securities purchased
    493,675       1,903,664  
Collateral to be paid on loaned securities
    126,971,898       179,421,136  
 
Total liabilities
    130,212,665       183,847,613  
 
Net assets available for benefits
  $ 1,479,218,841     $ 1,414,623,649  
 
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, 2005 and 2004
 
                 
    2005     2004  
 
Additions to net assets attributed to
               
Investment income
               
Interest
  $ 35,005,489     $ 33,257,675  
Participant loan interest
    1,619,102       1,710,343  
Dividends
    5,890,923       6,821,490  
Net appreciation in fair value of investments
    58,542,900       76,889,214  
 
 
    101,058,414       118,678,722  
 
 
               
Contributions
               
Employer’s
    22,051,130       22,282,826  
Participant’s
    59,325,689       56,024,604  
 
 
    81,376,819       78,307,430  
 
Transfers from other plans
    3,123,809       2,694,678  
 
Total additions
    185,559,042       199,680,830  
 
Deductions from net assets attributed to
               
Benefits paid
    116,792,825       109,774,106  
Plan expenses
    4,171,025       4,335,381  
 
Total deductions
    120,963,850       114,109,487  
 
Net increase
    64,595,192       85,571,343  
 
               
Net assets available for benefits
               
Beginning of year
    1,414,623,649       1,329,052,306  
 
End of year
  $ 1,479,218,841     $ 1,414,623,649  
 
The accompanying notes are an integral part of these financial statements.

3



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements
December 31, 2005 and 2004
 
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 up to 20% 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 and Plan sponsor matching contributions are fully vested and nonforfeitable at all times. 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 agreement.
 
    Participants, or their beneficiaries, may elect lump-sum benefit payments or benefits may be paid in installments. Subject to certain provisions specified in the Plan agreement, employed participants may withdraw their pre-tax contributions and related earnings in cases of financial hardship.
 
    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 in connection with Baxter’s 1996 spin-off of Allegiance Corporation (“Allegiance”), which were subsequently converted into common shares of Cardinal Health Inc. (“Cardinal”) upon Cardinal’s acquisition of Allegiance in 1999. These shares are maintained in the Cardinal Health Common Stock Fund. Additionally, certain participants maintain shares in Edwards Lifesciences Corporation. These shares were placed into the Edwards Lifesciences Common Stock Fund in connection with Baxter’s 2000 spin-off of its cardiovascular business. Participants are not able to make contributions to the Cardinal Health Common Stock Fund or the Edwards Lifesciences Common Stock Fund.
 
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.

4



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements
December 31, 2005 and 2004
 
     
Valuation of Investments
   
The valuation of Plan investments is determined as follows:
   
 
   
U.S. government and government agency
  Value based on the last reported sale price
issues
  from a national security exchange on the
 
  valuation date
 
   
Corporate and other obligations
  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
 
  value
 
   
Short-term investments
  Value based on cost which approximates fair
 
  value
 
   
Participant loans
  Valued based on outstanding principal balance
 
  which approximates fair value
 
   
Collateral
  Value based on cost which approximates fair
 
  value
Income Recognition
Plan investment return includes dividend and interest income, gains and losses on sales of investments and unrealized appreciation or depreciation of investments. Purchases and sales of investments are recorded on a trade date basis. Dividends are recorded on the ex-dividend date. The financial statements reflect the net appreciation or depreciation in the fair value of the Plan’s investments. This net appreciation or depreciation 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.

5



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements
December 31, 2005 and 2004
 
Synthetic Guaranteed Investment Contracts
The Plan’s synthetic guaranteed investment contracts (“GICs”) provide for a fixed return on principal over a specified period of time through fully benefit-responsive wrapper contracts issued by third parties which are backed by the underlying assets owned by the Plan. The portfolio of assets underlying the synthetic GICs primarily includes U.S. government and government agency issues, corporate and other bonds, and commingled trust funds. The contract value of the synthetic GICs was $571,960,001 and $556,651,032 at December 31, 2005 and 2004, respectively. The fair value of the investments underlying the synthetic GICs was $621,691,044 and $637,367,509 and the fair value of the wrapper contracts was ($49,731,043) and ($80,716,477) at December 31, 2005 and 2004, respectively. There are no reserves for credit risk of the contract issuers or any other risk. The Plan’s two contracts, Baxter Global Wrap Account and Pacific Investment Management Company, utilize wrapper contracts issued by Aegon Institutional Markets and Bank of America NT & SA, respectively. The average yield was 5.3% and 4.4% and the average crediting interest rate was 5.4% and 5.5% for the investment contracts for 2005 and 2004, respectively. The crediting interest rates are based on an agreed-upon formula with the issuers, which are reset quarterly or monthly. These crediting interest rates cannot be less than zero percent.
Payment of Benefits
Benefits are recorded when paid.
Other
Due from or due to brokers for securities sold or purchased, respectively, represent the net cash value of security trades initiated but not yet settled at each respective year-end.
Reclassifications
Certain amounts from the 2004 financial statements have been reclassified to conform to the current year presentation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.
Risks and Uncertainties
The Plan provides for various investment options which invest in any combination of registered investment companies, U.S. government and government agency issues, corporate and other obligations, common stock, commingled funds, synthetic guaranteed investment contracts and short-term investments. Investment securities are exposed to various risks, such as interest rate, market 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 fund values.

6



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements
December 31, 2005 and 2004
 
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 (the “Trustee”) serves as trustee and Citistreet LLC serves as recordkeeper for the Plan.
 
    The Administrative Committee administers the Plan. The Investment Committee has authority, responsibility and control over the management of the assets of the Plan. Members of both committees are appointed by the Board of Directors of Baxter and are employees of Baxter.
 
    Substantially all investment manager, trustee and administrative fees incurred in the administration of the Plan were paid from the assets of the Plan.
 
5.   Investments
 
    Investments representing five percent or more of the Plan’s net assets available for benefits at December 31, 2005 and 2004 are summarized as follows:
                 
    2005     2004  
 
Baxter Common Stock, 3,387,837 shares and 3,670,951 shares at December 31, 2005 and 2004, respectively
  $ 127,552,068     $ 126,794,642  
S&P500 Flagship Fund
    171,590,245       170,580,611  

7



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements
December 31, 2005 and 2004
 
Investments as of December 31, 2005 and 2004 are segregated into various investment fund options as follows:
                 
    2005     2004  
 
Cash (available for investment)
  $ 2,277,049     $ 1,352,665  
Stable Income Fund
    577,369,567       562,575,780  
Baxter Common Stock Fund
    134,101,457       129,561,504  
Composite Fund
    168,713,436       167,332,809  
General Equity Fund
    203,616,384       185,698,581  
Cardinal Health Common Stock Fund
    15,656,923       14,874,428  
S&P 500 Flagship Fund
    171,590,245       170,580,611  
International EAFE Equity Index Fund
    67,137,153       50,754,913  
Edwards Lifesciences Common Stock Fund
    11,239,586       12,637,409  
Small Cap Fund
    60,019,682       57,508,895  
Self-Managed Fund
    37,942,116       33,035,719  
Loan Fund
    29,575,488       28,645,973  
Collateral held on loaned securities
    126,971,898       179,421,136  
 
Total Investments
  $ 1,606,210,984     $ 1,593,980,423  
 
The fund amounts above include $28,841,429 and $15,678,491 of cash and cash equivalents at December 31, 2005 and 2004, respectively, which are awaiting investment in their respective portfolios. These amounts are primarily maintained in the State Street Bank Short-Term Investment Fund.
Net appreciation (depreciation) in fair value for each significant class of investment, which includes realized and unrealized gains and losses, is as follows:
                 
    2005     2004  
 
U.S. government and government agency issues
  $ (472,779 )   $ (194,059 )
Corporate and other obligations
    (900,695 )     2,537  
Baxter common stock
    11,180,872       14,837,077  
Other common stock
    29,349,284       29,633,772  
Registered investment companies
    380,801       2,328,259  
Commingled funds
    19,005,417       30,281,628  
 
 
  $ 58,542,900     $ 76,889,214  
 

8



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements
December 31, 2005 and 2004
 
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 Borrowers, pursuant to a security loan agreement, to deliver collateral to secure each loan. The Plan bears the risk of loss with respect to any unfavorable change in fair value of the invested cash collateral. However, the Borrower bears the risk of loss related to the decrease in the fair value of the securities collateral and, therefore, would have to deliver additional securities to maintain the required collateral. In the event of default by the Borrower, the Trustee shall indemnify the Plan by purchasing replacement securities equal to the number of unreturned loaned securities or, if replacement securities are not able to be purchased, the Trustee shall credit the Plan for the market value of the unreturned securities. In each case, the Trustee would apply the proceeds from the collateral for such a loan to make the Plan whole.
 
    The collateral received pursuant to securities lending transactions is reflected on the Statements of Net Assets Available for Benefits as both an asset and a liability, and has no effect on the net assets available for benefits of the Plan.
 
    As of December 31, 2005 and 2004, the Plan had securities on loan with a market value of $124,639,418 and $176,253,245, respectively, with cash collateral held of $126,971,898 and $179,421,136, respectively. Non-cash collateral of $260,330 and $147,600 received for securities on loan at December 31, 2005 and 2004, respectively, consisted of U.S. government and government agency issues held by the Trustee on behalf of the Plan. 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 $143,310 and $79,541 for 2005 and 2004, respectively. Securities lending income allocated to the Trustee amounted to $112,186 and $79,666 for 2005 and 2004, 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 Employee Retirement Income Security Act of 1974 (“ERISA”). In the event of Plan termination, such termination would not reduce the interest of any participating employee or their beneficiaries accrued under the Plan up to the date of such termination.
 
8.   Tax Status of the Plan
 
    The Internal Revenue Service has determined and informed the Plan sponsor by a letter dated December 13, 2005 that the Plan is designed in accordance with applicable sections of the Internal Revenue Code (the “IRC”). The Plan has been amended since the date of the determination letter. The Plan sponsor believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

9



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
Notes to Financial Statements
December 31, 2005 and 2004
 
9.   Related Parties
 
    At December 31, 2005 and 2004, 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, Travelers Property Casualty Corporation, and CitiBank Credit Card Master Trust I, which are all affiliated with Citistreet LLC, the recordkeeper. These transactions are allowable party-in-interest transactions under ERISA and the regulations promulgated thereunder.
 
10.   Plan Mergers
 
    During 2000, Baxter acquired North American Vaccine, Inc. The North American Vaccine, Inc. Retirement and Savings 401(k) Plan and Trust was merged into the Plan effective November 2004. As a result of this merger, total assets of approximately $2.7 million were transferred into the Plan.
 
    During 2001, Baxter acquired Sera-Tec Biologicals, L.P. The Sera-Tec Biologicals 401(k) Plan was merged into the Plan effective July 2005. As a result of this merger, total assets of approximately $3.1 million were transferred into the Plan.
 
11.   New Accounting and Disclosure Standard
 
    In December 2005, the Financial Accounting Standards Board (FASB) issued FASB Staff Position AAG INV-1 and SOP 94-1-1, “Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans” (the “FSP”), which will be effective for the Plan year ending December 31, 2006. The FSP clarifies the definition of fully benefit-responsive investment contracts and establishes new financial statement presentation and disclosure requirements for these contracts. Management is in the process of analyzing the impact of the FSP on the accounting, presentation and disclosure of the Plan’s guaranteed investment contracts.

10



 

 
 
 
 
SUPPLEMENTAL SCHEDULES

 



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
Identity of Issue   Description of Investment   Cost**     Current Value  
 
                   
Cash & Cash Equivalents:
                   
 
                   
*               SSGA MONEY MARKET FUND
  Short-Term Investment Fund             5,141,476  
*               State Street Bank + Trust Co
  Short-Term Investment Fund             25,749,598  
US Dollar
  US Dollar             227,404  
 
                 
 
                   
Cash and Cash Equivalents
              $ 31,118,478  
 
                 
 
                   
Common Stock:
                   
 
                   
1ST AMERICAN CORP
  Common Stock             13,590  
3COM CORP
  Common Stock             3,960  
3DICON CORP
  Common Stock             850  
3M COMPANY
  Common Stock             18,272  
8X8 INC NEW
  Common Stock             5,550  
ABB LTD SPONSORED ADR
  Common Stock             9,720  
ABBOTT LABORATORIES
  Common Stock             733,243  
ABERCROMBIE & FITCH CO CL A
  Common Stock             22,422  
ABERDEEN ASIA PACIFIC INCOME FD INC
  Common Stock             5,800  
ABIOMED INC
  Common Stock             2,449  
ABN AMRO HLDG N V SPONSORED ADR
  Common Stock             1,307  
ACACIA RES CORP AR COMBIMATRIX COM
  Common Stock             411  
ACCENTURE LTD BERMUDA CL A
  Common Stock             7,218  
ACCLAIM ENTMT INC
  Common Stock             6  
ACCO BRANDS CORP COM
  Common Stock             172  
ACE LTD
  Common Stock     979,465       1,155,640  
ACME UNITED CO
  Common Stock             2,806  
ACTIVISION INC
  Common Stock             1,484  
ACTUATE CORP
  Common Stock             25,748  
ADAPTIVE BROADBAND CORP
  Common Stock             30  
ADC TELECOMMUNICATIONS INC
  Common Stock     591,739       728,889  
ADC TELECOMMUNICATNS INC COM NEW
  Common Stock             9,531  
ADOBE SYS INC
  Common Stock             23,580  
ADVANCED DIGITAL INFORMATION CORP
  Common Stock             4,895  
ADVANCED MICRO DEVICES INC
  Common Stock             3,060  
ADVANCED PHOTONIX INC CL A
  Common Stock             34,334  
AES CORP
  Common Stock     1,169,468       1,141,080  
AETERNA ZENTARIS INC COM
  Common Stock             25,500  
AETNA INC
  Common Stock     230,444       1,024,384  
AFFYMETRIX INC
  Common Stock             4,775  
AFLAC INC
  Common Stock     521,652       609,634  
AFLAC INC
  Common Stock             31,036  
AGERE SYS INC COM
  Common Stock             9,804  
AGILENT TECH INC
  Common Stock             1,997  
AGILENT TECHNOLOGIES INC
  Common Stock     655,823       892,442  
AIM SELECT REAL ESTATE INCOME FUND
  Common Stock             14,980  
AIRNET COMMUNICATIONS CORP COM NEW
  Common Stock             94  
AIRTRAN HOLDINGS INC
  Common Stock             8,817  
AKAMAI TECH
  Common Stock             6,637  
AKSYS LTD
  Common Stock             359  
ALBERTSONS INC
  Common Stock             12,810  
ALCOA INC
  Common Stock             33,473  
ALCON INC
  Common Stock     1,953,257       3,506,451  
ALDERWOODS GROUP INC
  Common Stock             7,538  
ALKERMES INC
  Common Stock             21,892  
ALLIANCE PHARMACEUTICAL CORP COM NEW
  Common Stock             234  
ALLOS THERAPEUTICS INC
  Common Stock             11,718  
ALPHA NAT RES INC
  Common Stock             2,882  
ALTAIR NANOTECH INC
  Common Stock             2,132  
ALTEON INC
  Common Stock             6,570  
ALTRIA GROUP INC
  Common Stock     679,818       3,081,147  
ALVARION LTD
  Common Stock             11,336  
AMDOCS LIMITED
  Common Stock             5,500  
AMER INTL GROUP INC
  Common Stock             4,230  
AMERICA MOVIL S A DEC V
  Common Stock     922,344       889,892  
AMERICA MOVIL SERIES L ADR
  Common Stock             13,279  
AMERICAN CAPITAL STRATEGIES LTD
  Common Stock             7,242  
AMERICAN EAGLE OUTFITTERS
  Common Stock             12,823  
AMERICAN ELEC PWR INC
  Common Stock     2,760,560       2,477,888  
AMERICAN INTL GROUP INC
  Common Stock     3,719,098       3,678,580  
AMERICAN ORIENTAL BIOENGINEERING INC
  Common Stock             14,796  
AMERICAN RETIREMENT CORP
  Common Stock             2,513  
AMERICAN SAFETY INS GROUP LTD
  Common Stock             16,580  
AMERICAN TOWER CORP
  Common Stock     566,050       567,306  
AMERICAN WOODMARK CP
  Common Stock             7,437  
AMERIPRISE FINL INC COM
  Common Stock             16,400  
AMGEN INC
  Common Stock     1,289,730       1,852,242  
ANDREA ELECTRONICS CORP
  Common Stock             28  
ANDREW CORP
  Common Stock             268,229  
ANHEUSER BUSCH COS
  Common Stock             2,578  
ANSYS INC
  Common Stock             4,269  
AON CORP
  Common Stock     1,119,291       1,615,186  
APPLE COMPUTER
  Common Stock     2,461,568       5,309,850  
APPLE COMPUTER INC
  Common Stock             71,890  
APPLERA CORP COM APPLIED BIOSYSTEMS GROUP
  Common Stock             5,312  

11



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
APPLIED DIGITAL SOLUTIONS INC
  Common Stock             26,635  
APPLIED MATERIALS INC
  Common Stock             45,029  
APPLIED MICRO CIRCUITS CORP
  Common Stock             1,221  
APT SATELLITE HOLDING LTD
  Common Stock             780  
AQUA AMERICA INC
  Common Stock             2,730  
ARCHER DANIELS MIDLAND
  Common Stock             20,008  
ARIBA INC COM NEW
  Common Stock             1,220  
ARM HOLDINGS PLC SPONS ADR
  Common Stock             3,478  
ARMOR HLDGS INC COM
  Common Stock             2,133  
AROTECH CORP
  Common Stock             740  
ARROW ELECTRS INC
  Common Stock     1,013,171       1,151,252  
ARROW FINL CORP
  Common Stock             4,414  
ART TECHNOLOGY GRP INC
  Common Stock             9,800  
ARTEMIS INTL SOLUTIONS CORP COM NEW
  Common Stock             140  
ASTA FUNDING INC
  Common Stock             13,670  
ASTRAZENECA PLC- SPONS ADR
  Common Stock             2,187  
AT&T INC COM
  Common Stock             49,690  
ATARI INC
  Common Stock             5,184  
ATHEROGENICS INC
  Common Stock             300  
ATLAS AMERICA INC
  Common Stock             16,561  
ATSI COMMUNICATIONS INC COM NEW
  Common Stock             21  
AUDIOCODES LTD
  Common Stock             2,220  
AUTODESK INC
  Common Stock             6,440  
AUTOMATIC DATA PROCESSING INC
  Common Stock             13,770  
AVNET INC
  Common Stock     875,288       813,195  
AVON PRODUCTS INC
  Common Stock             5,710  
AXONYX INC
  Common Stock             83  
BACK YD BURGERS INC
  Common Stock             8,449  
BACKWEB TECHNOLOGIES LTD
  Common Stock             1,899  
BAIDU COM INC SPON ADR RESTG ORD SHS CL A
  Common Stock             18,876  
BALLARD PWR SYS INC
  Common Stock             167  
BANK AMER CORP
  Common Stock     2,507,232       3,709,804  
BANK NEW YORK INC
  Common Stock             7,474  
BANK OF AMERICA CORP
  Common Stock             25,844  
BANK OF THE OZARKS
  Common Stock             4,059  
BANRO CORP
  Common Stock             8,470  
BARD C R INC
  Common Stock             65,920  
BARR PHARMACEUTICALS INC
  Common Stock             13,953  
BARRETT BUS SVCS INC
  Common Stock             7,497  
*               BAXTER INTL INC
  Common Stock             127,552,068  
BAYER AG SPONSORED ADR
  Common Stock             25,840  
BEA SYSTEMS INC
  Common Stock             9,494  
BED BATH & BEYOND INC
  Common Stock             72,300  
BEMA GOLD CORP
  Common Stock             17,460  
BERKSHIRE HATHAWAY INC DEL
  Common Stock     1,117,740       1,400,116  
BERKSHIRE HATHAWAY INC DEL CL A FRMLY COMMON
  Common Stock             88,600  
BERKSHIRE HATHAWAY INC DEL CL B
  Common Stock             17,613  
BEST BUY INC
  Common Stock             282,968  
BEVERLY ENTERPRISES INC
  Common Stock             4,668  
BHP BILLITON LTD SPON ADR
  Common Stock             63,498  
BIOCRYST PHARMACEUTICALS INC
  Common Stock             33,500  
BIOGEN IDEC INC
  Common Stock             9,282  
BIOMERICA INC
  Common Stock             6,720  
BIOMET INC
  Common Stock             10,057  
BIOMIRA INC
  Common Stock             560  
BIOVAIL CORP
  Common Stock             43,663  
BLACK BOX CORP
  Common Stock             2,369  
BLACKROCK DIVID ACHIEVERS TM TR COM
  Common Stock             4,980  
BLOCK H & R INC
  Common Stock             10,385  
BLUE COAT SYS INC NEW
  Common Stock             18,288  
BLUE DOLPHIN ENERGY CORP
  Common Stock             20,088  
BLUELINX HOLDINGS INC
  Common Stock             1,530  
BOEING CO
  Common Stock     3,799,038       4,445,849  
BONSO ELECTRS INTL COM PAR $0.003 (NEW)
  Common Stock             4,060  
BORG WARNER INC.
  Common Stock     558,668       730,398  
BOSTON SCIENTIFIC CORP
  Common Stock     897,440       1,072,483  
BP PLC
  Common Stock     2,251,862       2,993,122  
BP PLC SPON ADR REPSNTG ORD SHRS
  Common Stock             13,832  
BRADLEY PHARMACEUTICALS INC
  Common Stock             570  
BRIGGS & STRATTON CORP
  Common Stock             7,915  
BRIGHAM EXPL CO
  Common Stock             4,744  
BRISTOL MYERS SQUIBB
  Common Stock             28,852  
BRITESMILE INC COM NEW
  Common Stock             49  
BROADCOM CORP
  Common Stock     3,794,494       4,865,306  
BROADCOM CORP CL A
  Common Stock             49,272  
BROADWING CORP COM
  Common Stock             21,562  
BROCADE COMMUNICATIONS SYS INC
  Common Stock             41  
BROOKFIELD ASSET MGMT INC
  Common Stock             25,165  
BROOKFIELD HOMES CORP
  Common Stock             98  
BROOKLINE BANCORP INC DEL COM
  Common Stock             5,101  
BSI2000 INC
  Common Stock             145  
BUILDING MATERIAL HOLDING CORP
  Common Stock             6,841  
C D W CORP COM
  Common Stock             20,525  
CABELAS INC
  Common Stock             12,450  
CABLE & WIRELESS PLC SPONSORED ADR RESPTG 3 ORD
  Common Stock             2,081  
CAL MAINE FOODS INC
  Common Stock             6,790  
CALAMP CORP
  Common Stock             178,340  
CALAVO GROWERS INC
  Common Stock             2,848  

12



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
CALPINE CORP
  Common Stock             1,007  
CAMPBELL SOUP CO
  Common Stock             75  
CANCERVAX CORP
  Common Stock             2,760  
CAPSTEAD MTG CORP COM NO PAR
  Common Stock             2,905  
CAPSTONE TURBINE CORP
  Common Stock             20,930  
CARDIAC SCIENCE CORP
  Common Stock             272  
CARDINAL COMM INC N/C FROM 91732M105
  Common Stock             20  
*               CARDINAL HEALTH INC
  Common Stock             15,543,137  
CARDIOTECH INTL INC
  Common Stock             1,150  
CAREMARK RX INC
  Common Stock     1,533,393       1,713,180  
CARMAX INC
  Common Stock             2,768  
CARNIVAL CORP
  Common Stock     665,617       760,300  
CARREKER CORP
  Common Stock             998  
CATERPILLAR INC
  Common Stock             137,793  
CBIZ INC COM
  Common Stock             1,445  
CDC CORPORATION SHS A
  Common Stock             16,000  
CELGENE CORP
  Common Stock             35,705  
CELL GENESYS INC COM
  Common Stock             356  
CEMEX S A SPONS ADR
  Common Stock             6,111  
CENDANT CORP
  Common Stock             8,727  
CENTRAL SECURITIES CORP
  Common Stock             11,911  
CENVEO INC
  Common Stock             10,528  
CERUS CORP
  Common Stock             43,391  
CHARLES & COLVARD LTD
  Common Stock             6,060  
CHARTER COMM INC DEL CL A
  Common Stock             6,832  
CHATTEM INC
  Common Stock             10,189  
CHESAPEAKE ENERGY CORPORATION OKLAHOMA
  Common Stock             3,102,432  
CHEVRON CORP
  Common Stock     1,694,177       2,242,286  
CHEVRON CORP NEW
  Common Stock             39,739  
CHICOS FAS INC
  Common Stock             13,179  
CHINA ENERGY SVGS TECHNOLOGY INC
  Common Stock             4,160  
CHINA PETROLEUM & CHEM CORP SPON ADR REPSTG H SHS
  Common Stock             11,156  
CHINA YUCHAI INTERNATIONAL LTD
  Common Stock             7,830  
CHUBB CORP
  Common Stock     1,477,276       2,709,510  
CHUBB CORP
  Common Stock     824,546       1,301,722  
CIENA CORP
  Common Stock             5,094  
CIGNA CORP
  Common Stock     765,643       1,654,461  
CIRCLE GROUP HLDGS INC
  Common Stock             2,950  
CISCO SYS INC
  Common Stock             379,225  
*               CITIGROUP INC
  Common Stock     5,639,757       5,862,906  
CLARENT CORP
  Common Stock             3  
CLEAR CHANNEL OUTDOOR HLDGS IN
  Common Stock     351,925       392,005  
CLEVELAND CLIFFS INC
  Common Stock             12,592  
CLICK COMM INC COM
  Common Stock             6,306  
CLINICAL DATA INC NEW
  Common Stock             543  
CLOROX CO
  Common Stock     1,680,199       1,775,151  
CMGI INC FRMLY CMG INFORMATION SVCS INC
  Common Stock             40,743  
CNS INC
  Common Stock             3,295  
COACH INC
  Common Stock             3,334  
COCA COLA CO
  Common Stock             20,645  
COGENT INC
  Common Stock             1,134  
COGNIZANT TECH SOLUTIONS CORP
  Common Stock             6,233  
COHEN & STEERS PREM INCOME RLTY FD INC
  Common Stock             12,158  
COLGATE-PALMOLIVE CO
  Common Stock             2,743  
COLUMBIA SPORTSWEAR CO
  Common Stock             95,460  
COMCAST CORP NEW
  Common Stock     1,973,628       1,732,595  
COMCAST CORP NEW CL A
  Common Stock             6,480  
COMCAST CORP NEW CL A SPL
  Common Stock             6,885  
COMDISCO HLDG CO INC CONTINGENT DISTRIBUTION RTS
  Common Stock             320  
COMMERCE BANCORP INC N J COM
  Common Stock             8,635  
COMMTOUCH SOFTWARE LTD SHS
  Common Stock             530  
COMPANHIA SIDERURGICA NACIONAL SPONS ADR REPTSG ORD SHS
  Common Stock             5,081  
COMPUWARE CORP
  Common Stock             8,970  
COMTECH TELECOMMUNICATIONS CORP COM NEW
  Common Stock             9,165  
CONAGRA FOODS INC
  Common Stock             10,140  
CONEXANT SYS INC
  Common Stock             4,746  
CONNACHER OIL & GAS LTD
  Common Stock             6,606  
CONOCOPHILLIPS
  Common Stock     541,160       1,487,069  
CONSOL ENERGY INC
  Common Stock             6,518  
CONTANGO OIL & GAS INC COM NEW
  Common Stock             11,440  
COOPER INDUSTRIES LTD
  Common Stock     509,749       771,292  
COOPER TIRE + RUBR CO
  Common Stock     767,583       635,361  
CORAUTUS GENETICS INC COM NEW
  Common Stock             886  
CORILLIAN CORP
  Common Stock             127,840  
CORNING INC
  Common Stock     2,836,365       4,112,641  
CORPORATE EXECUTIVE BRD CO
  Common Stock             987  
CORPORATE HIGH YIELD FD V INC
  Common Stock             2,504  
COTHERIX INC
  Common Stock             1,058  
COVAD COMMUNICATIONS GROUP INC
  Common Stock             98  
CREE INC
  Common Stock             8,834  
CROWN CASTLE INTL CORP
  Common Stock     384,431       401,239  
CSX CORP
  Common Stock     2,513,091       2,867,579  
CUMBERLAND RES LTD
  Common Stock             4,420  
CVS CORP DEL
  Common Stock             2,061  
CYBERCARE INC
  Common Stock             5  
CYPRESS SEMICONDUCTR CORP
  Common Stock             14,250  
D R HORTON INC
  Common Stock             16,821  
DADE BEHRING HLDGS INC
  Common Stock             14,393  

13



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
DAIMLERCHRYSLER AG ORD
  Common Stock             5,945  
DATASTREAM SYSTEMS INC
  Common Stock             1,081  
DEERE & COMPANY
  Common Stock             16,824  
DELCATH SYSTEMS INC COM
  Common Stock             13,600  
DELL INC
  Common Stock             19,917  
DELPHI CORP
  Common Stock             47  
DELTA AIR LINES INC
  Common Stock             8,667  
DENDREON CORP
  Common Stock             10,840  
DHB INDUSTRIES INC
  Common Stock             447  
DIAGEO PLC
  Common Stock             7,288  
DIEBOLD INC
  Common Stock     777,417       825,503  
DIGI INTL INC
  Common Stock             682  
DIGITAL LIGHTWAVE INC
  Common Stock             893  
DIOMED HLDGS INC COM NEW
  Common Stock             974  
DIRECTV GROUP INC
  Common Stock     1,617,773       1,359,590  
DISCOVERY HLDG CO COM SER A
  Common Stock             455  
DISNEY WALT CO DEL (HOLDING COMPANY)
  Common Stock             91,973  
DISTRIBUTED ENERGY SYS CORP
  Common Stock             3,790  
DOBSON COMMUNICATIONS CORP CL A
  Common Stock             2,250  
DOLLAR GEN CORP
  Common Stock             4,786  
DOMINION RESOURCES INC VA NEW
  Common Stock             14,400  
DORAL FINANCIAL CORP
  Common Stock             10,600  
DOT HILL SYS CORP
  Common Stock             693  
DOV PHARMACEUTICAL INC
  Common Stock             7,340  
DOW CHEMICAL CO
  Common Stock             48,202  
DR REDDYS LABS LTD ADR
  Common Stock             4,377  
DREAMWORKS ANIMATION SKG INC CL A
  Common Stock             9,063  
DRIL QUIP INC
  Common Stock             472  
DUKE ENERGY CORP.
  Common Stock             24,705  
DUKE REALTY CORP COM NEW
  Common Stock             16,700  
DYNEGY INC HLDG CO
  Common Stock             17,545  
E M C CORP MASS
  Common Stock             166,300  
E TRADE FINANCIAL CORP
  Common Stock             20,860  
EASTMAN KODAK CO
  Common Stock             16,380  
EATON VANCE LTD DURATION INCOME FD
  Common Stock             20,551  
EBAY INC
  Common Stock     3,436,940       4,038,405  
ECHOSTAR COMMUNICATIONS CL A
  Common Stock             2,718  
EDGE PETE CORP
  Common Stock             2,491  
*               EDWARDS LIFESCIENCES CORP
  Common Stock             11,162,417  
EL PASO CORP
  Common Stock     664,993       810,493  
EL PASO CORP COM
  Common Stock             365  
ELAN CORP PLC ADR
  Common Stock             80,794  
ELDORADO GOLD CORP
  Common Stock             18,130  
ELECTRONIC ARTS INC
  Common Stock     1,360,667       1,477,280  
ELECTRONIC DATA SYS CORP NEW
  Common Stock     886,938       1,082,459  
ELECTRONICS ARTS
  Common Stock             12,764  
EMERSON ELEC CO
  Common Stock     636,351       626,977  
EMERSON ELECTRIC CO
  Common Stock             22,410  
EMULEX CORP COM NEW
  Common Stock             2,276  
ENBRIDGE INC
  Common Stock             18,862  
ENCANA CORP
  Common Stock             23,723  
ENCORE MEDICAL CORP
  Common Stock             24,750  
ENCYSIVE PHARMACEUTICALS INC
  Common Stock             947  
ENERPLUS RES FD TR UNIT
  Common Stock             55,338  
ENOVA SYS INC COM NEW
  Common Stock             1,576  
ENSCO INTL INC
  Common Stock     564,257       661,276  
ENTERGY CORP NEW
  Common Stock     1,871,177       2,447,146  
ENTRAVISION COMMUNICATIONS CORP CL A
  Common Stock             1,068  
EOG RESOURCES INC
  Common Stock             7,341  
EPICOR SOFTWARE CORP
  Common Stock             7,065  
EPIX PHARMACEUTICALS INC
  Common Stock             16,968  
EQUIFAX INC
  Common Stock             3,422  
ERESEARCH TECHNOLOGY INC
  Common Stock             14,466  
ESCALADE INC
  Common Stock             4,120  
ESPEED INC CL A
  Common Stock             3,855  
ESS TECHNOLOGY INC
  Common Stock             1,029  
EV3 INC
  Common Stock             43,336  
EVERGREEN SOLAR INC
  Common Stock             25,560  
EXPEDIA INC DEL COM
  Common Stock             6,373  
EXPRESS SCRIPTS INC COM FORMERLY CL A
  Common Stock             8,380  
EXTENDICARE INC
  Common Stock             4,689  
EXXON MOBIL CORP
  Common Stock     3,662,481       3,556,008  
FARO TECHNOLOGIES INC
  Common Stock             1,400  
FASTENAL CO
  Common Stock     481,074       595,948  
FEDERAL HOME LN MTG CORP
  Common Stock     1,369,898       1,458,365  
FEDERAL NATL MTG ASSN
  Common Stock     3,500,835       2,641,201  
FEDEX CORP
  Common Stock             58,480  
FIDELITY NATL FINL INC
  Common Stock             2,207  
FIELDPOINT PETROLEUM CORP
  Common Stock             4,823  
FIFTH THIRD BANCORP
  Common Stock             9,430  
FINISAR CORP
  Common Stock             10,400  
FIRST CASH FINL SVCS
  Common Stock             5,832  
FIRST DATA CORP
  Common Stock             4,000  
FISERV INC
  Common Stock             5,452  
FLAGSTAR BANCORP INC
  Common Stock             864  
FLEXTRONICS INTERNATIONAL LTD
  Common Stock     1,809,908       1,589,633  
FLEXTRONICS INTL INC
  Common Stock             2,349  
FLORIDA ROCK INDS INC
  Common Stock             49,060  

14



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
FOOD TECHNOLOGY SVCS INC
  Common Stock             1,680  
FORBES MEDI-TECH INC
  Common Stock             15,461  
FORD MTR CO DEL COM
  Common Stock             10,916  
FORDING CDN COAL TR UNIT
  Common Stock             53,554  
FOREST LABORATORIES INC
  Common Stock             5,329  
FORTUNE BRANDS INC
  Common Stock             7,412  
FOSTER WHEELER LTD SHS NEW
  Common Stock             920  
FOUNDATION COAL HLDGS INC
  Common Stock             3,800  
FOWARD INDS II
  Common Stock             6,141  
FPL GROUP INC
  Common Stock             4,223  
FRANKLIN RES INC
  Common Stock     1,944,918       2,896,282  
FREESCALE SEMICONDUCTOR INC
  Common Stock     1,284,263       1,604,353  
FREESCALE SEMICONDUCTOR INC CL B
  Common Stock             11,327  
FRONTLINE LTD SHS
  Common Stock             33,711  
FUELCELL ENERGY INC
  Common Stock             4,235  
FUTUREMEDIA PLC-ADR
  Common Stock             2,144  
GALLAGHER ARTHUR J & CO
  Common Stock             15,440  
GAMESTOP CORP NEW CL A
  Common Stock             10,023  
GATEWAY INC
  Common Stock             3,514  
GEHL CO COM
  Common Stock             11,813  
GENENTECH INC
  Common Stock     3,244,365       4,869,525  
GENERAL DYNAMICS CRP
  Common Stock             14,941  
GENERAL ELEC CO
  Common Stock     7,124,426       7,416,899  
GENERAL ELECTRIC CO
  Common Stock             198,343  
GENERAL MARITIME CORP SHS
  Common Stock             1,482  
GENERAL MILLS INC
  Common Stock             39,456  
GENEREX BIOTECHNOLOGY CORP
  Common Stock             1,245  
GENTA INC
  Common Stock             2,978  
GENWORTH FINL INC
  Common Stock     1,785,375       2,113,624  
GEOPHARMA INC
  Common Stock             1,835  
GEORESOURCES INC
  Common Stock             2,190  
GETTY IMAGES INC
  Common Stock     447,541       480,469  
GIGAMEDIA LTD
  Common Stock             14,250  
GILEAD SCIENCES INC
  Common Stock     1,533,847       2,065,308  
GLOBAL HIGH INC DLR FD INC
  Common Stock             9,891  
GLOBALSANTAFE CORPORATION
  Common Stock     1,620,895       1,878,043  
GOLD FIELDS LTD ADR
  Common Stock             14,104  
GOLDCORP INC NEW
  Common Stock             12,254  
GOLDEN STAR RES LTD
  Common Stock             26,400  
GOLDMAN SACHS GROUP INC
  Common Stock     2,956,123       3,587,438  
GOODRICH CORP FORMERLY GOODRICH B F CO 06/01/01
  Common Stock             6,234  
GOOGLE INC
  Common Stock     3,217,997       6,816,588  
GOOGLE INC CL A
  Common Stock             60,570  
HALLIBURTON CO
  Common Stock     3,832,531       5,151,523  
HALLIBURTON CO HOLDING CO FRMLY HALLIBURTON CO
  Common Stock             17,361  
HALOZYME THERAPEUTICS INC
  Common Stock             12,161  
HANCOCK JOHN PFD EQUITY INCOME FD SH BEN INT
  Common Stock             14,896  
HANSEN NATURAL CORP
  Common Stock             19,703  
HARKEN ENERGY CORP
  Common Stock             570  
HARLEY DAVIDSON INC
  Common Stock             5,149  
HARRAH’S ENTERTAINMENT INC
  Common Stock             14,258  
HARTFORD FINANCIAL SVCS GRP
  Common Stock     818,224       1,060,144  
HARVEST ENERGY TR UNITS
  Common Stock             29,022  
HCA INC
  Common Stock     651,107       718,069  
HEADWATERS INC
  Common Stock             42,528  
HELMERICH & PAYNE
  Common Stock             6,209  
HENRY JACK & ASSOC INC
  Common Stock             13,096  
HERSHEY CO
  Common Stock             2,265  
HEWLETT PACKARD CO
  Common Stock     2,812,352       3,768,458  
HEWLETT-PACKARD CO DE
  Common Stock             76,041  
HOKU SCIENTIFIC INC
  Common Stock             2,277  
HOLLIS-EDEN PHARMA INC
  Common Stock             339  
HOLLY CORP PAR $0.01
  Common Stock             11,845  
HOLOGIC INC
  Common Stock             5,688  
HOME DEPOT INC
  Common Stock             302,538  
HONDA MOTOR LTD
  Common Stock     1,093,160       1,487,524  
HONEYWELL INTL INC
  Common Stock             11,221  
HOSPIRA INC
  Common Stock             48,042  
HSBC HOLDINGS PLC SPONS ADR
  Common Stock             29,532  
I2 TECHNOLOGIES INC COM NEW
  Common Stock             564  
IAC / INTERACTIVECRP COM NEW
  Common Stock             7,530  
ICON PLC CORP ADR REPRSTG 1 ORD SHR
  Common Stock             4,525  
ICOS CORP
  Common Stock             27,630  
IDM PHARMA INC COM
  Common Stock             26  
IKON OFFICE SOLUTION INC
  Common Stock             312  
IMA EXPLORATION INC
  Common Stock             3,020  
IMCLONE SYS INC
  Common Stock             3,698  
IMMUNOGEN INC
  Common Stock             3,601  
IMMUNOMEDICS INC
  Common Stock             2,920  
IMPAC MTG HLDGS INC
  Common Stock             47  
IMPCO TECHNOLOGIES
  Common Stock             5,160  
IMPERIAL OIL LTD COM NEW
  Common Stock             3,984  
INCO LTD COM
  Common Stock             4,357  
INCYTE CORP
  Common Stock             28,275  
INDEVUS PHARMACEUTICALS INC
  Common Stock             43,040  
ING CLARION REAL ESTATE INCOME FD COM SHS
  Common Stock             14,325  
ING PRIME RATE TR SH BEN INT
  Common Stock             6,660  
INNODATA ISOGEN INC
  Common Stock             571  

15



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
INPHONIC INC COM
  Common Stock             21,725  
INSMED INC COM NEW
  Common Stock             55,160  
INTEGRATED DEVICE TECH INC
  Common Stock             3,031  
INTEL CORP
  Common Stock     1,794,551       1,898,866  
INTELLISYNC CORP CASH MERGER AT $5.25 PER SHARE
  Common Stock             5,160  
INTER TEL INC
  Common Stock             58,964  
INTERNET CAP GROUP INC
  Common Stock             2,672  
INTERNET INITIATIVE INC SPONS ADR
  Common Stock             11,150  
INTERPUBLIC GROUP COS INC
  Common Stock     2,691,797       1,969,608  
INTL BUSINESS MACH
  Common Stock             11,508  
INTL FUEL TECH INC NEW
  Common Stock             9,850  
INTL GAME TECHNOLOGY
  Common Stock             26,779  
INTRAWEST CORP NEW
  Common Stock             23  
INTUITIVE SURGICAL INC COM NEW
  Common Stock             1,173  
ION NETWORKS INC
  Common Stock             85  
IRIS INTL INC
  Common Stock             19,674  
IRVINE SENSORS CORPORATION NEW
  Common Stock             2,390  
ISCO INTL INC
  Common Stock             1,472  
ISHARES INC MSCI AUSTRALIA INDEX FUND
  Common Stock             6,047  
ISHARES INC MSCI AUSTRIA INDEX FD
  Common Stock             8,396  
ISHARES INC MSCI BELGIUM INDEX FD
  Common Stock             6,098  
ISHARES INC MSCI BRAZIL FREE INDEX FUND
  Common Stock             25,028  
ISHARES INC MSCI CANADA INDEX FD
  Common Stock             9,187  
ISHARES INC MSCI HONG KONG INDEX FD
  Common Stock             1,262  
ISHARES TR S&P100 INDEX FUND
  Common Stock             5,685  
ISHARES TR S&P500/ VALUE INDEX FD
  Common Stock             14,582  
ISHARES TR S&P LATIN AMER 40 INDEX FD
  Common Stock             1,966  
ISHARES TR S&P MIDCAP400 INDEX FD
  Common Stock             14,760  
ISHARES TR S&P MIDCAP400/ VALUE INDEX FD
  Common Stock             32,138  
ISHARES TR U S TREAS INFLATION PROTECTED SECS FD
  Common Stock             72,781  
ISOLAGEN INC
  Common Stock             3,700  
IVANHOE ENERGY COM
  Common Stock             5,565  
IVILLAGE INC CASH MERGER AT $8.50 PER SHARE
  Common Stock             32,080  
JABIL CIRCUIT INC
  Common Stock             14,836  
JDS UNIPHASE CORP
  Common Stock             43,927  
JENSEN PORTFOLIO CLASS J
  Common Stock             55,674  
JOHNSON & JOHNSON
  Common Stock             119,332  
JONES APPAREL GROUP INC
  Common Stock     1,006,701       858,460  
JOY GLOBAL INC
  Common Stock             6,017  
JPMORGAN CHASE & CO
  Common Stock     2,833,046       3,015,658  
JUNIPER NETWORKS INC
  Common Stock     3,839,643       3,695,604  
JUPITERMEDIA CORP
  Common Stock             4,434  
K MART CORP
  Common Stock             3  
KB HOME            COM
  Common Stock             5,813  
KELLY SVCS INC CL A
  Common Stock             8,338  
KEY TECH INC
  Common Stock             2,761  
KIMBERLY CLARK CORP
  Common Stock             11,930  
KINETIC CONCEPTS INC COM NEW
  Common Stock             97,810  
KING PHARMACEUTICALS INC
  Common Stock             3,282  
KINTERA INC
  Common Stock             1,782  
KNIGHT TRANSPORTATION INC
  Common Stock             2,011  
KNIGHTSBRIDGE TANK COM USD0.01
  Common Stock             2,425  
KNOLOGY INC
  Common Stock             7,680  
KOALA CORP
  Common Stock             1  
KOHLS CORP
  Common Stock             48,600  
KOREA FUND INC
  Common Stock             3,560  
KOS PHARMACEUTICALS INC
  Common Stock             15,519  
KRISPY KREME DOUGHNUTS INC
  Common Stock             4,649  
KROGER CO
  Common Stock     1,157,210       1,129,389  
KRONOS WORLDWIDE INC
  Common Stock             60  
L-3 COMMUNICATIONS HLDGS INC
  Common Stock             14,694  
LABOR READY INC NEW
  Common Stock             2,082  
LABORATORY CORP AMER HLDGS
  Common Stock     740,835       1,409,106  
LABORATORY CORP AMER HLDGS COM NEW
  Common Stock             5,385  
LAW ENFORCEMENT ASSOCIATES CORP
  Common Stock             7,264  
LCA VISION INC PAR $.001
  Common Stock             5,369  
LEAPFROG ENTERPRISES INC CL A
  Common Stock             11,941  
LEAR CORP
  Common Stock     626,603       511,468  
LEGG MASON INC
  Common Stock     1,571,787       2,221,917  
LEHMAN BROS HLDGS CORP
  Common Stock             3,332  
LEHMAN BROTHERS HLDGS INC
  Common Stock     610,072       1,126,389  
LEVEL 3 COMMUNICATIONS INC
  Common Stock             2,870  
LEXAR MEDIA INC
  Common Stock             20,525  
LIBERTY ALL STAR EQUITY FD SBI
  Common Stock             146  
LIBERTY MEDIA CORP
  Common Stock     1,320,249       1,342,889  
LIFECELL CORP
  Common Stock             12,947  
LILLY ELI + CO
  Common Stock     1,089,927       1,107,121  
LINUX GOLD CORP
  Common Stock             335  
LJ INTERNATIONAL INC
  Common Stock             17,150  
LOOKSMART LTD COM NEW
  Common Stock             1,504  
LORAL SPACE & COMMUNCATIONS LTD SHS NEW
  Common Stock             1  
LOUDEYE CORP
  Common Stock             475  
LOWES COMPANIES
  Common Stock             25,622  
LOWES COS INC
  Common Stock     2,658,476       3,218,743  
LSI LOGIC CORP
  Common Stock             16,000  
LUCENT TECH INC
  Common Stock             106,826  
LYONDELL CHEMICAL CO
  Common Stock     1,391,017       1,270,129  
M 2003 PLC SPONSORED ADR N/C FROM 566306205
  Common Stock             2  

16



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
MAGNA INTL INC
  Common Stock     572,349       533,071  
MANNKIND CORP
  Common Stock             7,319  
MARATHON OIL CORP
  Common Stock             6,160  
MARCONI CORP PLC NEW SPON ADR
  Common Stock             26  
MARSH + MCLENNAN COS INC
  Common Stock     1,234,731       1,332,851  
MARTHA STEWART LIVING
  Common Stock             1,743  
MARVEL ENTMT INC COM
  Common Stock             9,894  
MARVELL TECHNOLOGY GROUP LTD
  Common Stock     2,325,334       3,993,309  
MARVELL TECHNOLOGY GROUP LTD
  Common Stock             2,805  
MASCO CORP
  Common Stock             4,529  
MASSMUTUAL PARTN INVS
  Common Stock             28,100  
MAXTOR CORP
  Common Stock             3,470  
MCDONALDS CORP
  Common Stock     2,276,263       2,806,903  
MEDCO HEALTH SOLUTIONS INC
  Common Stock     806,893       1,438,093  
MEDICAL ACTION INDS INC
  Common Stock             20,440  
MEDIMMUNE INC
  Common Stock             14,708  
MEMRY CORP
  Common Stock             24,448  
MERCK + CO INC
  Common Stock     1,614,087       1,890,760  
MERGE TECHNOLOGIES INC
  Common Stock             16,276  
MERIDIAN RESOURCE CORP
  Common Stock             16,170  
MERRILL LYNCH & CO
  Common Stock     3,228,513       3,583,191  
METLIFE INC
  Common Stock     1,027,146       1,664,434  
METLIFE INC COM
  Common Stock             490  
MGI PHARMA INC
  Common Stock             8,494  
MICHAELS STORES INC
  Common Stock             7,074  
MICROSOFT CORP
  Common Stock     2,167,751       2,139,483  
MICROVISION INC WASH
  Common Stock             25,200  
MILACRON INC
  Common Stock             2,520  
MILLENNIUM PHARM INC
  Common Stock             27,791  
MINDSPEED TECHNOLOGIES INC
  Common Stock             78  
MINEFINDERS LTD CORP
  Common Stock             5,140  
MIRANT CORP
  Common Stock             132  
MIRAVANT MEDICAL TECHNOLOGY
  Common Stock             31  
MKS INSTRUMENTS INC
  Common Stock             1,789  
MONARCH CASINO RESORT INC
  Common Stock             9,040  
MONTPELIER REINSURANCE HOLDINGS LTD
  Common Stock             11,340  
MORGAN STANLEY
  Common Stock     990,564       1,028,355  
MOSAIC CO
  Common Stock     426,282       433,389  
MOTION DNA CORP COM PAR $0.001
  Common Stock             1,400  
MOTOROLA INC
  Common Stock             439,857  
MPOWER HOLDING CORP NEW
  Common Stock             112  
MULTI FINELINE ELECTRONIX INC
  Common Stock             24,085  
MULTIBAND CORP
  Common Stock             1,200  
MURPHY OIL CORP
  Common Stock             5,399  
NABI BIOPHARMACEUTICALS
  Common Stock             2,704  
NABORS INDUSTRIES LTD
  Common Stock     2,514,978       3,253,749  
NABORS INDUSTRIES LTD (BERMUDA)
  Common Stock             2,273  
NAM TAI ELECTRONICS INC
  Common Stock             5,288  
NANOGEN INC
  Common Stock             25,769  
NANOPHASE TECH CORP
  Common Stock             8,475  
NASDAQ STK MKT INC
  Common Stock             7,036  
NATIONAL CITY CORP
  Common Stock     974,329       1,243,068  
NEC CORP ADR
  Common Stock             1,257  
NEENAH PAPER INC
  Common Stock             168  
NEKTAR THERAPEUTICS
  Common Stock             24,361  
NEOFORMA INC
  Common Stock             9,900  
NEOPHARM INC
  Common Stock             21,580  
NETFLIX COM INC COM
  Common Stock             2,706  
NETGEAR INC
  Common Stock             5,775  
NETWORK APPLIANCE CORP
  Common Stock             2,160  
NETWORK APPLIANCE INC
  Common Stock     1,164,719       1,170,417  
NEW FRONTIER MEDIA INC
  Common Stock             6,513  
NEWELL RUBBERMAID INC
  Common Stock             4,756  
NII HLDGS INC NEW
  Common Stock             22,626  
NIKE INC CLASS B
  Common Stock             10,415  
NITROMED INC
  Common Stock             21,762  
NL INDS INC COM NEW
  Common Stock             3,111  
NOBLE CORPORATION
  Common Stock     658,358       647,785  
NOKIA CORP ADR
  Common Stock             40,320  
NORDSTROM INC
  Common Stock             8,078  
NORTEL NETWORKS CORP
  Common Stock     134,133       175,638  
NORTHERN TRUST CORP
  Common Stock     1,073,129       1,105,257  
NORTHFIELD LABORATORIES INC
  Common Stock             161,189  
NORTHGATE MINERALS CORP
  Common Stock             9,150  
NOVAGOLD RESOURCES
  Common Stock             4,550  
NOVAMED INC DEL
  Common Stock             1,959  
NOVARTIS AG ADR
  Common Stock             1,942  
NOVAVAX INC
  Common Stock             7,623  
NPS PHARMACEUTICALS INC
  Common Stock             35,520  
NUTRI SYS INC NEW COM
  Common Stock             10,806  
NVIDIA CORP
  Common Stock             14,624  
O REILLY AUTOMOTIVE INC
  Common Stock             38,028  
OCCIDENTAL PETE CORP
  Common Stock     251,565       1,206,818  
OCCIDENTAL PETROLEUM CORP
  Common Stock             11,183  
ODYSSEY MARINE EXPLORATION INC
  Common Stock             17,700  
OFFICE DEPOT INC
  Common Stock     1,091,417       2,040,176  
OIL STS INTL INC
  Common Stock             9,504  
OIL SVC HOLDRS TR OIL SVC HOLDERS DEPOSITARY RCPT
  Common Stock             77,280  

17



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
OLD REPUBLIC INTL CORP
  Common Stock             7,878  
OM GROUP INC
  Common Stock             281  
OMNIVISION TECHNOLOGIES INC
  Common Stock             7,186  
ON2 TECHNOLOGIES INC
  Common Stock             32,224  
ONCOLYTICS BIOTECH INC
  Common Stock             231,835  
ONSCREEN TECHNOLOGIES INC N/C FROM 647537208
  Common Stock             110  
OPENTV CORP CL A
  Common Stock             392  
OPLINK COMMUNICATIONS INC COM NEW
  Common Stock             6,206  
ORACLE CORPORATION
  Common Stock             105,311  
ORASURE TECHNOLOGIES INC COM
  Common Stock             9,702  
ORCHID CELLMARK INC
  Common Stock             304  
OREZONE RESOURCES INC
  Common Stock             7,560  
OSI PHARMACEUTICALS INC
  Common Stock             22,432  
OVERLAND STORAGE INC COM
  Common Stock             4,010  
OVERSTOCK COM INC DEL COM
  Common Stock             5,630  
OXFORD INDS INC
  Common Stock             5,470  
P F CHANGS CHINA BISTRO INC
  Common Stock             1,737  
PACIFIC ETHANOL INC
  Common Stock             4,869  
PACIFIC RIM MINING CORP
  Common Stock             18,450  
PACTIV CORPORATION
  Common Stock             22,000  
PALM INC NEW COM
  Common Stock             55,936  
PANACOS PHARMACEUTICALS INC
  Common Stock             1,733  
PARAMETRIC TECH CORP
  Common Stock             6,100  
PARKER DRILLING CO
  Common Stock             3,249  
PATTERSON UTI ENERGY INC
  Common Stock             16,502  
PAXSON COMMUNICATIONS CORP
  Common Stock             900  
PAYCHEX INC
  Common Stock             3,812  
PDI INC
  Common Stock             1,350  
PEABODY ENERGY CORP
  Common Stock             16,494  
PENGROWTH ENERGY TR TR UNITS CL A
  Common Stock             21,811  
PENN NATL GAMING INC
  Common Stock             14,498  
PEPSICO INC
  Common Stock     1,453,749       1,820,565  
PETRO CANADA COM
  Common Stock             20,045  
PETROFUND ENERGY TR TR UNIT
  Common Stock             6,038  
PETROHAWK ENERGY CORP
  Common Stock             2,644  
PETROLEO BRASILEIRO SA PETROBRAS SPONS ADR
  Common Stock             1,782  
PETROLEUM & RES CORP
  Common Stock             8,892  
PETSMART INC
  Common Stock             1,796  
PFIZER INC
  Common Stock     1,149,121       1,485,435  
PHARMOS CORP COM PAR $.03
  Common Stock             66  
PHELPS DODGE CORP
  Common Stock             23,581  
PIKE ELEC CORP COM
  Common Stock             12,165  
PILGRIMS PRIDE CORP CL B
  Common Stock             93,345  
PIONEER DRILLING CO
  Common Stock             109,463  
PLANTRONICS INC NEW
  Common Stock             2,830  
PLUM CREEK TIMBER CO INC
  Common Stock             8,003  
PMC-SIERRA INC
  Common Stock             9,252  
POLARIS INDS INC
  Common Stock             5,020  
POORE BROTHERS INC
  Common Stock             1,227  
POP3 MEDIA CORP
  Common Stock             40  
PORTALPLAYER INC COM
  Common Stock             2,832  
POWERWAVE TECH INC
  Common Stock             6,285  
PRICESMART INC
  Common Stock             1,505  
PRIMEWEST ENERGY TR UT TR
  Common Stock             42,581  
PROCTER & GAMBLE CO
  Common Stock     6,120,969       6,487,393  
PROTEIN DESIGN
  Common Stock             3,467  
PROVIDENT ENERGY TR
  Common Stock             12,121  
PROXIM CORP CL A NEW NO STOCKHOLDERS EQTY 7/27/05
  Common Stock             7  
PRUDENTIAL FINL INC
  Common Stock             3,660  
PUTNAM HIGH INCOME BOND FD
  Common Stock             18,925  
PUTNAM MASTER INTER INCOME TR SH BEN INT
  Common Stock             6,337  
QLOGIC CORP
  Common Stock             30,982  
QLT INC
  Common Stock             16,536  
QUALCOMM INC
  Common Stock     4,311,404       5,021,763  
QUALITY SYSTEMS
  Common Stock             8,520  
QUANTUM CORP DLT & STORAGE
  Common Stock             6,100  
QUANTUM FUEL SYS TECHNOLOGIES WORLDWIDE INC
  Common Stock             2,680  
QUEST DIAGNOSTICS INC
  Common Stock             5,148  
RADCOM LTD SEDOL #2117124
  Common Stock             14,175  
RADIANT SYSTEMS INC
  Common Stock             9,120  
RADIOSHACK CORP
  Common Stock             3,155  
RADYNE CORP COM PAR $.002
  Common Stock             1,457  
RAMBUS INC
  Common Stock             19,752  
RAMP CORP COM NEW
  Common Stock             8  
RAYONIER INC
  Common Stock             4,446  
RED HAT INC
  Common Stock             10,904  
REDBACK NETWORKS INC COM NEW
  Common Stock             281  
RENAISSANCERE HOLDINGS LTD
  Common Stock     552,067       548,807  
RENAL CARE GROUP INC CASH MERGER @$48.00 PER SHARE
  Common Stock             7,097  
RENT A CENTER INC
  Common Stock             11,316  
REPLIGEN CORP
  Common Stock             1,400  
RESEARCH IN MOTION LTD
  Common Stock             33,005  
REYNOLDS AMERN INC
  Common Stock             1,907  
RF MICRO DEVICES INC
  Common Stock             3,787  
RITE AID CORP
  Common Stock             11,595  
ROCKWELL AUTOMATION INC
  Common Stock             23,664  
ROCKWELL MEDICAL TECH INC
  Common Stock             1,131  
ROYAL DUTCH SHELL PLC
  Common Stock     1,271,427       1,366,152  

18



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
ROYCE VALUE TR INC
  Common Stock             8,936  
RUBICON MINERALS CORP
  Common Stock             870  
RUTHS CHRIS STEAK HSE INC
  Common Stock             796  
RYERSON INC
  Common Stock             11,163  
SABA SOFTWARE INC COM NEW
  Common Stock             3,672  
SAFENET INC COM
  Common Stock             2,384  
SAFEWAY INC
  Common Stock     1,182,333       1,376,075  
SANDISK CORP
  Common Stock             43,974  
SANGAMO BIOSCIENCES INC
  Common Stock             4,030  
SANMINA SCI CORP
  Common Stock             686  
SANOFI-AVENTIS SPONSORED ADR
  Common Stock             21,950  
SARA LEE CORP
  Common Stock             5,670  
SASOL LTD SPON ADR
  Common Stock             20,460  
SCHERING PLOUGH CORP
  Common Stock             39,615  
SCHLUMBERGER LTD
  Common Stock     283,028       268,604  
SCHWAB CHARLES CORP
  Common Stock     610,115       605,506  
SCRIPPS E W CO OH
  Common Stock     890,370       886,698  
SEAGATE TECHNOLOGY
  Common Stock             8,996  
SEARS HLDGS CORP
  Common Stock             2,195  
SECTOR SPDR TR SHS BEN INT ENERGY
  Common Stock             1,057  
SECTOR SPDR TR SHS BEN INT UTILITIES
  Common Stock             7,220  
SEITEL INC COM PAR $.01
  Common Stock             752  
SELECT SECTOR SPDR TR HEALTH CARE
  Common Stock             36,979  
SENIOR HOUSING PROP TRUST
  Common Stock             33,820  
SERENA SOFTWARE INC
  Common Stock             4,686  
SHANDA INTERACTIVE ENTMT LTD SPON ADR
  Common Stock             8,382  
SHINHAN FINL GROUP CO LTD
  Common Stock             8,150  
SHIP FINANCE INTERNATIONAL LIMITED
  Common Stock             5,199  
SHUFFLE MASTER
  Common Stock             12,620  
SIEBEL SYSTEMS INC
  Common Stock             33,930  
SILGAN HOLDINGS INC
  Common Stock             5,418  
SILICON IMAGE INC
  Common Stock             11,791  
SINA CORP REG SHS
  Common Stock             8,601  
SIRIUS SATELLITE RADIO INC
  Common Stock             357,318  
SIRNA THERAPEUTICS INC
  Common Stock             1,212  
SKYWORKS SOLUTIONS INC COM
  Common Stock             178  
SLM CORP COM
  Common Stock             2,755  
SMURFIT STONE CONTAINER CORP
  Common Stock     963,845       1,010,228  
SOCKET COMM INC
  Common Stock             565  
SOHU.COM INC
  Common Stock             4,768  
SOLECTRON CORP
  Common Stock     1,780,134       732,205  
SONIC CORP
  Common Stock             8,850  
SONICBLUE INC COM
  Common Stock             5  
SONTRA MED CORP COM
  Common Stock             7,050  
SONUS NETWORKS INC
  Common Stock             7,068  
SONY CORP ADR NEW
  Common Stock             20,400  
SOUTHERN CO
  Common Stock             3,453  
SOUTHERN COPPER CORP DEL COM
  Common Stock             24,572  
SOUTHERN UNION CO NEW COM
  Common Stock             236  
SOUTHWEST AIRLS CO
  Common Stock     1,624,874       1,857,613  
SOUTHWESTERN ENERGY CO
  Common Stock             197,311  
SPECTRANETICS CORP
  Common Stock             53,100  
SPEEDUS.COM INC
  Common Stock             1,177  
SPRINT NEXTEL CORP
  Common Stock     1,675,371       1,935,294  
SPRINT NEXTEL CORP FON SHS
  Common Stock             41,160  
ST JOE COMPANY
  Common Stock             33,610  
ST JUDE MED INC
  Common Stock     1,992,505       2,746,159  
ST PAUL TRAVELERS INC
  Common Stock             3,975  
STANDARD MICROSYS CP
  Common Stock             1,865  
STANLEY FURNITURE CO.
  Common Stock             93,380  
STANTEC INC
  Common Stock             5,763  
STARBUCKS CORP
  Common Stock     775,158       757,447  
*               STATE STREET CORP
  Common Stock             11,246  
STEMCELLS INC
  Common Stock             3,450  
STERICYCLE INC
  Common Stock             19,430  
STERLING CONSTRUCTION INC
  Common Stock             4,208  
STOLT OFFSHORE S A
  Common Stock             4,664  
STRATASYS INC
  Common Stock             12,505  
STRATOS INTL INC FORMERLY STRATOS LIGHTWAVE INC TO 11/21/2003
  Common Stock             153  
STREETTRACKS DOW JONES GLOBAL TITANS INDEX FUND
  Common Stock             3,901  
STREETTRACKS GOLD TR GOLD SHS
  Common Stock             24,758  
STREETTRACKS WILSHIRE REIT INDEX FUND
  Common Stock             52,909  
STRYKER CORP
  Common Stock             53,671  
SULPHCO INC COM
  Common Stock             11,300  
SUMMIT FINL GROUP INC
  Common Stock             34,010  
SUN HYDRAULICS INC
  Common Stock             5,799  
SUN MICROSYSTEMS INC
  Common Stock             62,875  
SUNCOR ENERGY INC FRMLY SUNCOR INC
  Common Stock             25,003  
SUNTRUST BKS INC
  Common Stock     1,113,426       1,171,096  
SUPERIOR ENERGY SERVICES INC
  Common Stock             8,420  
SUREBEAM CORP CL A
  Common Stock             74  
SYCAMORE NETWORKS INC
  Common Stock             8,640  
SYMANTEC CORP
  Common Stock     1,541,192       1,344,384  
SYMBOL TECH INC
  Common Stock             2,185  
SYNERON MEDICAL LTD ORD SHS
  Common Stock             1,588  
SYNGENTA AG SPONSORED ADR
  Common Stock             12,455  
SYS
  Common Stock             15,954  
SYSCO CORP
  Common Stock             17,388  

19



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
TALBOTS INC
  Common Stock             2,782  
TALK AMER HLDGS INC NEW
  Common Stock             3,452  
TAN RANGE EXPL CORP
  Common Stock             36,614  
TARGET CORP
  Common Stock     4,711,013       5,048,291  
TARGETED GENETICS CORP 1 FOR 10 REVERSE SPLIT INTO TARGETED GENETICS CORP COM
  Common Stock             2,548  
TASER INTERNATIONAL INC
  Common Stock             63,364  
TEAM INC
  Common Stock             844  
TECH DATA CORP
  Common Stock     738,654       732,699  
TELIK INC
  Common Stock             3,398  
TELLABS INC
  Common Stock     1,038,645       1,310,762  
TELUS CORP NON VTG SHS
  Common Stock             4,026  
TENARIS SA SPONS ADR
  Common Stock             5,790  
TENET HEALTHCARE CORP
  Common Stock             3,102  
TERRA INDS INC
  Common Stock             3,696  
TESORO CORP COM FORMERLY TESORO PETE CORP TO 11/08/2004
  Common Stock             6,170  
TEVA PHARMACEUTICAL INDS LTD
  Common Stock     2,884,170       4,123,831  
TEXAS INSTRS INC
  Common Stock     1,025,313       1,146,356  
TEXAS INSTRUMENTS INC
  Common Stock             35,277  
TEXTRON INC
  Common Stock     1,308,128       2,265,199  
THE ST PAUL TRAVELERS COS INC
  Common Stock     758,135       908,030  
THERMO ELECTRON CORP
  Common Stock     900,810       1,190,067  
THIRD WAVE TECHNOLOGIES INC
  Common Stock             6,437  
TIKCRO TECHNOLOGIES LTS N/C FROM M8789G100
  Common Stock             345  
TIME WARNER INC
  Common Stock             93,252  
TIME WARNER INC NEW
  Common Stock     3,719,951       3,950,500  
TOLL BROS INC
  Common Stock             3,741  
TOOTSIE ROLL INDS
  Common Stock             2,170  
TOP TANKERS INC
  Common Stock             6,150  
TRAFFIX INC
  Common Stock             5,120  
TRANSCANADA CORP
  Common Stock             3,148  
TRANSMERIDIAN EXPL INC
  Common Stock             24,260  
TRANSWITCH CORP
  Common Stock             14,640  
TRI ISTHMUS GROUP INC COM N/C FROM 92908B303
  Common Stock             4  
TRIBUNE CO NEW
  Common Stock             6,052  
TRIMEDYNE INC
  Common Stock             5,700  
TRIQUINT SEMICONDUCTOR INC
  Common Stock             9,123  
TYCO INTL LTD
  Common Stock     799,627       1,382,134  
TYCO INTL LTD NEW
  Common Stock             43,728  
UAL CORP COM PAR $0.01 NO STOCKHOLDERS EQUITY 02/01/06
  Common Stock             851  
UBS AG
  Common Stock     1,417,934       1,437,515  
UGI CORP NEW
  Common Stock             13,002  
ULTRA PETROLEUM CORP
  Common Stock             17,577  
UNILEVER N V
  Common Stock     2,548,355       2,616,616  
UNILEVER PLC NEW SPONS ADR NEW
  Common Stock             8,024  
UNITED ONLINE INC
  Common Stock             9,812  
UNITEDHEALTH GROUP
  Common Stock             73,263  
UNITEDHEALTH GROUP INC
  Common Stock     1,405,610       3,337,969  
UNIVISION COMM INC CL A
  Common Stock             1,470  
UNUMPROVIDENT CORP
  Common Stock     1,276,364       1,673,593  
US BANCORP DEL
  Common Stock     1,490,305       1,579,035  
USEC INC
  Common Stock             13,424  
UTSTARCOM INC
  Common Stock             97,728  
VA SOFTWARE CORP
  Common Stock             5,749  
VALERO ENERGY CORP
  Common Stock             30,058  
VARIAN INC
  Common Stock             1,194  
VASCO DATA SECURITY INTL
  Common Stock             9,860  
VASO ACTIVE PHARMACEUTICALS INC CL A
  Common Stock             880  
VASOGEN INC
  Common Stock             2,075  
VENTIV HEALTH INC
  Common Stock             9,448  
VERISIGN INC
  Common Stock             6,789  
VERITAS DGC INC
  Common Stock             7,098  
VERIZON COMMUNICATIONS
  Common Stock             28,612  
VERSANT CORP COM NEW
  Common Stock             1,094  
VERTICALNET INC COM NEW
  Common Stock             2,900  
VIA NET WORKS INC
  Common Stock             1,568  
VIACELL INC
  Common Stock             2,248  
VINTAGE PETE INC EXCH’D FOR $20.00 + .42 SHARES OF OCCIDENTAL PETE CUSIP 674599105
  Common Stock             5,333  
VIRAGEN INC COM NEW
  Common Stock             494  
VIROPHARMA INC
  Common Stock             3,700  
VISEON INC
  Common Stock             800  
VISUAL NETWORKS INC
  Common Stock             162,900  
VITESSE SEMICONDUCTR CORP
  Common Stock             1,920  
VOLCOM INC
  Common Stock             11,665  
WACHOVIA CORP 2ND NEW
  Common Stock     1,649,759       2,988,335  
WALGREEN CO
  Common Stock     1,199,565       1,197,496  
WALGREEN COMPANY
  Common Stock             243,667  
WAL-MART STORES INC
  Common Stock             289,224  
WASHINGTON MUTUAL INC
  Common Stock             26,860  
WASTE MANAGEMENT INC
  Common Stock             1,527  
WASTE MGMT INC DEL
  Common Stock     1,428,689       1,483,461  
WATSON PHARMACEUTICALS INC
  Common Stock     1,375,948       1,492,733  
WEBEX COMMUNICATIONS INC FORMERLY WEBEX INC TO 07/20/2000
  Common Stock             8,652  
WELLPOINT INC
  Common Stock     3,650,529       4,601,006  
WENDYS INTL INC
  Common Stock             11,052  
WESTCORP INC (CALIF) EXCH’D FOR 1.2749 SHS OF WACHOVIA CORP CUSIP 929903102
  Common Stock             3,346  
WESTELL TECHNOLOGIES INC CL A
  Common Stock             4,500  
WESTERN DIGITAL CORP DEL
  Common Stock             27,915  
WESTERN SILVER CORP
  Common Stock             11,260  

20



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
WHOLE FOODS MKT INC
  Common Stock     731,518       979,236  
WILD OATS MARKETS INC
  Common Stock             1,208  
WILLIAMS COS INC
  Common Stock     1,152,583       1,452,820  
WIRELESS FACILITIES INC
  Common Stock             15,300  
WISCONSIN ENERGY CORP
  Common Stock     23,019       34,713  
WOMEN FIRST HEALTHCARE INC
  Common Stock             2  
WORLDGATE COMMUNICATIONS INC
  Common Stock             7,210  
XILINX INC
  Common Stock             34,160  
XL CAPITAL LTD
  Common Stock     1,405,395       1,297,412  
XM SATELLITE RADIO HLDGS INC CL A
  Common Stock             81,704  
XOMA LTD
  Common Stock             1,568  
XTO ENERGY INC
  Common Stock             13,567  
XYBERNAUT CORP
  Common Stock             1,380  
YAHOO INC
  Common Stock     3,243,354       5,045,557  
YAMANA GOLD INC
  Common Stock             6,610  
YORK WATER CO COM
  Common Stock             9,847  
YOUTHSTREAM MEDIA NETWORKS INC
  Common Stock             110  
ZEBRA TECHNOLOGIES CORP CL A
  Common Stock             16,069  
ZHONE TECHNOLOGIES INC NEW COM
  Common Stock             3,487  
ZIMMER HLDGS INC
  Common Stock             1,012  
ZOLTEK COS INC
  Common Stock             2,634  
ZOMAX INC
  Common Stock             2,080  
ZYGO CORP
  Common Stock             4,405  
 
                 
 
                   
Common Stock
              $ 461,907,223  
 
                 
 
                   
U.S. Government and Government Agency Issues:
                   
 
                   
AMERICREDIT AUTOMOBILE REC TR
  3.430 06JUL11 SER 2004 DF CL A4     285,640       276,834  
CAPITAL AUTO RECEIVABLES ASSET
  3.580 15JAN09 2004 2 ASSET BACKED NT CL A 3     783,129       768,401  
CAPITAL AUTO RECEIVABLES ASSET
  .990 28JAN09 SER 2004 2 ASSET BKD NT CL A 4     54,174       52,984  
CONTINENTAL AIRLS
  6.900 02JAN18 SER 1997 4 PASSTHUR CTF CL 4A     860,018       866,728  
CONTINENTAL AIRLS PASS THRU
  6.648 15MAR19 SER 1998 1PASSTHUR CUF CL A     108,896       110,692  
CWABS INC
  3.872 25MAR20 2004 S1 CL A2     266,007       261,450  
CWABS INC
  4.615 25FEB35 2004 S1 ASSET BKD CTF CL A 3     285,705       277,980  
DAIMLERCHRYSLER AUTO TR
  3.280 08DEC09 2004 C ASSET BKD NT CL A 4     531,955       516,913  
DAIMLERCHRYSLER AUTO TR
  4.200 08JUL10 2005 B ASSET BACKED NT CL A 4     192,096       189,306  
FED HM LN PC POOL A37176
  5.000 01SEP35     2,330,478       2,286,033  
FED HM LN PC POOL A46049
  5.000 01JUL35     1,091,594       1,103,256  
FED HM LN PC POOL B11058
  4.500 01NOV18     1,109,313       1,065,863  
FED HM LN PC POOL B12373
  4.500 01FEB19     1,931,681       1,853,904  
FED HM LN PC POOL C48827
  6.000 01MAR31     45,517       46,127  
FED HM LN PC POOL E01344
  4.500 01APR18     1,298,017       1,234,278  
FED HM LN PC POOL E01377
  4.500 01MAY18     917,517       871,642  
FED HM LN PC POOL E01378
  5.000 01MAY18     1,327,837       1,275,298  
FED HM LN PC POOL E01386
  5.000 01JUN18     1,187,081       1,144,031  
FED HM LN PC POOL G01843
  6.000 01JUN35     1,582,646       1,562,353  
FNMA POOL 254759
  4.500 01JUN18     1,689,554       1,606,679  
FNMA POOL 323887
  6.000 01DEC13     229,055       227,793  
FNMA POOL 581043
  6.000 01MAY16     95,037       95,273  
FNMA POOL 615005
  6.000 01DEC16     132,237       132,525  
FNMA POOL 641791
  6.000 01MAY17     138,039       138,381  
FNMA POOL 694448
  5.500 01APR33     1,049,157       1,030,992  
FNMA POOL 725690
  6.000 01AUG34     810,239       797,951  
FNMA POOL 743346
  5.500 01OCT18     1,309,205       1,278,736  
FNMA POOL 748115
  6.000 01OCT33     268,379       264,023  
FNMA POOL 787515
  6.000 01AUG19     532,510       520,545  
FNMA POOL 793181
  6.000 01JUL19     896,142       875,744  
FNMA POOL 815316
  5.500 01MAY35     1,128,439       1,106,731  
FNMA POOL 821890
  5.000 01JUN35     623,507       630,608  
FNMA POOL 822979
  5.500 01APR35     1,081,005       1,060,045  
FNMA POOL 832799
  5.000 01SEP35     1,520,072       1,534,507  
FORD CR AUTO OWNER TR
  4.380 15JAN10 2005 B NT CL A4     753,661       746,346  
GOVERNMENT ISSUES
  1.750 26MAR08 1.75 26MAR2008     398,040       345,038  
GOVERNMENT ISSUES
  4.000 15JUN09     486,975       486,629  
GOVERNMENT ISSUES
  4.250 31OCT07     1,846,688       1,846,799  
HARLEY DAVIDSON MOTORCYCLE TR
  3.760 17DEC12 2005 1 CONTRACT BKD NT CL A2     694,483       680,934  
HONDA AUTO RECEIVABLES
  1.000 18FEB10 ASSET BKD NT SER 2004 3 CL A 4     723,948       701,189  
HONDA AUTO RECEIVABLES OWNERS
  4.030 20DEC10 SER 2005 3 CL A4     295,550       289,821  
JOHN DEERE OWNER TRUST
  3.980 15JUN09 2005 A ASSET BKD NT CL A3     305,391       301,620  
NAVISTAR FINANCIAL CORP OWNER
  3.530 15OCT12 SER 2004 B CL A4     596,045       575,722  
SALTON SEA FDG CORP
  7.475 30NOV18 SR SECD SER F BD     200,633       233,375  
UNITED MEXICAN STS
  Tranche Tr 00012 4.625 10/08/2008     306,356       291,873  
UNITED MEXICAN STS MTN
  Tranche Tr 00008 7.500 01/14/2012     343,844       384,485  
USAA AUTO OWNER TR
  3.530 15JUN11 2004 3 ASSET BACKED NT CL A 4     876,612       854,264  
WFS FINL 2004 4 OWNER TR
  2.980 17SEP09 AUTO RECEIVABLE BKD NT CL A3     413,741       407,329  
WFS FINL 2004 4 OWNER TR
  3.440 17MAY12 AUTO RECVABLES SR 2004 4 C A4     290,631       282,776  
 
                 
 
                   
U.S. Government and Government Agency Issues
              $ 35,492,806  
 
                 
 
                   
Corporate and Other Obligations:
                   
 
                   
AETNA INC
  7.875 01MAR11 FORMERLY AETNA US HEALTH     783,110       762,302  
ALBERTSONS INC
  7.750 15JUN26 NT     26,489       28,246  
ALBERTSONS INC
  7.450 01AUG29 SR DEB     210,983       223,780  
ALBERTSONS INC
  8.700 01MAY30 SR DEB     9,169       9,801  
ALBERTSONS INC
  8.000 01MAY31 SR NT     235,774       242,328  
ALBERTSONS INC
  6.625 01JUN28 TRANCHE TR 00074     19,739       21,012  

21



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
ALTRIA GROUP INC
  5.625 04NOV08 NT     746,649       749,042  
AMERICA MOVIL S A DE C V
  5.500 01MAR14 GTD SR NT     301,505       301,633  
AMERICAN STORES CO NEW
  8.000 01JUN26 DEB     37,316       41,236  
ARAMARK CORP
  5.000 01JUN12 SR NT     93,585       90,465  
AT + T CORP ACQUIRED
  9.750 15NOV31 USD SR NT     2,278,452       2,301,874  
AXIS CAP HLDGS LTD
  5.750 01DEC14 SR NT     324,426       325,194  
CAMPANHIA ENER DE MINAS GERAIS SPONS ADR PAR $.01 REP NON VTG PFD
  Preferred Stock             5,529  
CAPITAL ONE BK
  4.875 15MAY08 TRANCHE TR 00174     1,022,474       1,005,747  
CHESAPEAKE ENERGY CORP
  6.875 15JAN16 SR NT     94,779       95,936  
CHESAPEAKE ENERGY CORP
  6.375 15JUN15 SR NT     307,187       305,322  
CHESAPEAKE ENERGY CORP
  6.500 15AUG17 SR NT 144A     292,931       297,046  
CHESAPEAKE ENERGY CORP
  6.875 15NOV20 SR NT 144A     43,843       44,889  
CIA PARANAENSE DE ENERGIA SPONS ADR REPSTG PFD CL B NON VTG
  Preferred Stock             753  
*               CITI GROUP INC NEW
  3.375 01APR09 SR NT     883,592       843,682  
*               CITIGROUP INC
  5.750 10MAY06 GLOBAL SR NT     297,230       286,739  
CLEAR CHANNEL COMMUNICATIONS
  5.750 15JAN13 NT     33,172       33,808  
CLEAR CHANNEL COMMUNICATIONS
  4.900 15MAY15 SR NT     30,413       31,182  
CLEAR CHANNEL COMMUNICATIONS
  5.000 15MAR12 SR NT     528,524       504,891  
CLEAR CHANNEL COMMUNICATIONS
  5.500 15SEP14 NT DTD     60,424       61,279  
COLONIAL RLTY LTD PARTNERSHIP
  4.750 01FEB10 SR NT     113,295       110,362  
COMCAST CORP NEW
  5.850 15NOV15 NT     738,462       743,478  
COMPUTER ASSOC INTL INC
  5.625 01DEC14 SR NT 144A     1,162,182       1,159,087  
CORNING INC
  6.200 15MAR16 NT     714,905       755,643  
COX COMMUNICATIONS INC NEW
  5.450 15DEC14 NT     261,422       254,768  
DEERE JOHN CAP CORP
  3.900 15JAN08 GLOBAL NT     590,362       579,560  
DEUTSCHE TELEKOM INTL FIN B V
  3.875 22JUL08 GLOBAL NT     579,674       577,372  
DEVELOPERS DIVERSIFIED RLTY CO
  5.375 15OCT12 NT     607,908       601,624  
ENRON CAP RES L P PFD SER A 9% MIP
  Preferred Stock             15  
ENTERPRISE PRODUCTS OPER
  4.950 01JUN10     152,457       149,747  
EOP OPER LTD PARTNERSHIP
  6.800 15JAN09 NT     840,691       772,613  
ERAC USA FIN CO
  7.350 15JUN08 GTD NT 144A     449,154       439,388  
FIRSTENERGY CORP
  6.450 15NOV11 NT SER B     846,404       835,470  
FORD MTR CR CO
  7.000 01OCT13 GLOBAL NT     536,437       484,054  
GENERAL ELEC CAP CORP MTN
  3.750 15DEC09 TRANCHE TR 00665     1,140,006       1,096,485  
GENERAL ELECTRIC CAPITAL CORP
  1.400 02NOV06 1.4 PCT (MTN) 02NOV2006     590,618       557,554  
GENERAL MTRS ACCEP CORP
  6.875 15SEP11 NT     677,860       664,870  
GEORGIA PAC CORP
  7.375 01DEC25 DEB     35,820       35,468  
GEORGIA PAC CORP
  7.250 01JUN28 DEB     76,229       74,218  
GEORGIA PAC CORP
  7.750 15NOV29 DEB     494,246       480,975  
GOLDMAN SACHS GROUP INC
  4.500 15JUN10 SR NT     968,944       962,817  
HALLIBURTON CO
  5.500 15OCT10 SR NT REGS     1,118,252       1,066,647  
HARRAHS OPER INC
  7.125 01JUN07 SR NT     388,193       378,835  
HCA INC
  6.250 15FEB13 NT 6.25PCT13     616,679       591,556  
HOUSEHOLD FIN CORP
  6.500 15NOV08 NT     945,430       922,859  
INTERNATIONAL BUSINESS MACHS
  4.250 15SEP09 NT     485,564       482,900  
ISTAR FINL INC
  5.150 01MAR12 SR NT     482,550       477,073  
J P MORGAN CHASE + CO
  3.625 01MAY08 GLOBAL SR NT     1,010,340       958,270  
JAPANESE YEN
  JAPANESE YEN           (66 )
KRAFT FOODS INC
  5.250 01JUN07 NT     679,236       667,728  
KROGER CO
  6.750 15APR12     132,614       129,514  
KROGER CO
  6.200 15JUN12 SR NT     77,775       75,702  
KROGER CO
  5.500 01FEB13 NT     302,364       296,632  
KROGER CO
  4.950 15JAN15 SR NT     768,777       729,722  
L 3 COMMUNICATIONS CORP
  6.375 15OCT15 SR SUB NT 144A     102,507       103,190  
LB UBS COML MTG TR
  4.647 16DEC11 2005 C3 COML MTG PASSTHRU A3     490,118       475,169  
LEHMAN BROS HLDG
  7.000 01FEB08     960,492       948,703  
MEDPARTNERS INC
  7.375 01OCT06 SR NT     157,808       155,314  
METHANEX CORP
  6.000 15AUG15 SR NT     568,665       555,323  
MORGAN STANLEY CAP I INC
  4.890 12JUN47 2005 TOP19 COML MTG CL A 4A     723,131       705,092  
NOVASTAR FINL INC PFD SER C 8.90%
  Preferred Stock             11,750  
PEMEX PROJ FDG MASTER TR
  6.125 15AUG08 GTD NT     590,710       602,959  
PREMCOR REFNG GROUP INC
  6.750 01FEB11 SR NT     366,062       384,041  
PROGRESS ENERGY INC
  7.100 01MAR11 SR NT     301,656       292,320  
PROVIDENT COS INC
  7.250 15MAR28 SR NT     68,406       71,152  
QWEST CAP FDG INC
  7.750 15FEB31 NT     32,673       33,104  
QWEST CORP
  7.875 11SEP11 NT     321,182       318,474  
RESIDENTIAL CAP CORP
  6.375 30JUN10 NT     194,546       195,215  
RESIDENTIAL CAP CORP
  6.125 21NOV08 NT     378,804       380,235  
ROGERS CABLE INC
  6.750 15MAR15 SR SECD 2ND PRIORITY NT     389,999       385,002  
SHAW COMUNICATIONS INC
  7.500 20NOV13 SR NT     104,973       122,345  
SIMON PPTY GROUP INC NEW
  3.750 30JAN09 NT     689,465       661,863  
SPRINT CAP CORP
  6.875 15NOV28 NT     1,392,633       1,550,228  
TIME WARNER INC
  6.625 15MAY29 DEB     894,652       836,266  
U S WEST COMMINICATIONS INC
  7.250 15OCT35 DEB     159,982       162,045  
U S WEST COMMUNICATIONS INC
  7.250 15SEP25 DEB     160,518       161,750  
UNION PAC CORP
  3.625 01JUN10 NT     635,985       604,067  
UNUMPROVIDENT CORP
  6.750 15DEC28 NT     232,908       241,346  
UNUMPROVIDENT CORP
  7.375 15JUN32 SR DEB     55,881       56,845  
US WEST CAP FDG INC
  6.500 15NOV18 DEB     143,812       143,449  
VERIZON NEW ENG INC
  6.500 15SEP11 DEB     181,323       171,807  
VERIZON NEW ENG INC
  4.750 01OCT13     24,132       22,895  
WELLPOINT INC
  3.750 14DEC07 NT     391,187       385,338  
WELLS FARGO + CO NEW
  3.500 04APR08 GLOBAL NT     1,011,690       957,325  
WELLS FARGO + CO NEW
  3.125 01APR09 NT     98,368       93,325  
XEROX CORP
  6.875 15AUG11 SR NT     383,647       372,195  
 
                 
 
                   
Corporate and Other Obligations
              $ 38,886,788  
 
                 

22



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
Synthetic Guaranteed Investment Contracts:
                   
 
                   
Cash & Cash Equivalents
                   
*               State Street Bank + Trust Co
  Short-Term Investment Fund     14,076,562       14,076,562  
SunTrust Bk Atlanta GA
  DTC MMI Generics ST Cusip 4.415 06/15/2009     186,172       186,172  
UBS FIN DEL LLC DISC COML3/A3
  4.190 03JAN06 DTC MMI Generic St Cusip     195,879       195,879  
UBS FIN DEL LLC DISC COML3/A3
  4.300 03JAN06 DTC MMI Generic St Cusip     587,561       587,561  
US Dollar
  Cash     523,436       523,436  
 
                 
 
                   
 
                15,569,610  
 
                 
 
                   
U.S. Government and Government Agency Issues
                   
BADGER TOB ASSET SECURITIZATIO
  6.125 01JUN27 ASSET BKD     233,828       268,580  
ERIE CNTY NY TOB ASSET SECURIT
  6.000 01JUN28 TAXABLE ASSET BKD SER E     344,108       345,385  
FAIRFAX CNTY VA
  5.250 01APR13 REF + PUB IMPT SER A     678,209       649,607  
FED HM LN PC POOL A35931
  4.500 01JUL35     483,838       480,394  
FED HM LN PC POOL A37435
  4.500 01SEP35     95,690       95,009  
FED HM LN PC POOL A46675
  4.500 01AUG35     676,980       671,995  
FED HM LN PC POOL A47055
  4.500 01SEP35     824,786       820,607  
Fed Hm Ln PC Pool B12725
  4.000 01MAR14     729,364       718,211  
FED HM LN PC POOL B16497
  5.500 01SEP19     818,380       796,823  
FED HM LN PC POOL E01343
  5.000 01APR18     1,261,914       1,211,808  
FED HM LN PC POOL E01377
  4.500 01MAY18     2,303,282       2,180,158  
Fed Hm Ln PC Pool E98695
  4.500 01AUG18     1,458,224       1,462,850  
FED HM LN PC POOL G01843
  6.000 01JUN35     3,862,715       3,813,186  
FED HM LN PC POOL G01953
  .990 01NOV35     947,750       940,771  
Fed Hm Ln PC Pool G11371
  4.500 01MAR13     326,112       324,155  
FED HM LN PC POOL M80843
  3.500 01SEP10     105,815       104,787  
FED HM LN PC POOL M90952
  4.000 01OCT09     160,189       154,073  
FED HM LN PC POOL M90954
  4.000 01NOV09     416,970       402,992  
FED HM LN PC POOL M90966
  4.000 01JAN10     445,726       433,130  
FEDERAL FARM CR BKS
  2.375 02OCT06     1,562,481       1,541,340  
FEDERAL HOME LN BK CONS DSC NT
  .010 11JAN06     9,377,323       9,377,323  
Federal Home Ln Bks
  5.375 15FEB07 CONS BD     1,213,213       1,213,631  
Federal Home Ln Bks
  05OCT07 CONS BD     452,790       456,016  
FEDERAL HOME LN MTG CORP
  3.500 15JUN17 SEr 2677 CL MJ     3,993,367       3,940,230  
FEDERAL HOME LN MTG CORP
  6.000 15JUL27 PREASSIGN 00249     805,160       845,275  
FEDERAL HOME LN MTG CORP
  6.000 15FEB11 SER 1819 CL 1819 E     1,488,678       1,618,503  
Federal Home Ln Mtg Corp Mtn
  3.250 02NOV07 TRANCHE TR 00636     357,483       357,439  
Federal Home Ln Mtg Corp Mtn
  3.550 15NOV07     2,357,897       2,356,402  
FEDERAL HOME LN MTG DISC NTS
  .010 03MAR06     3,070,807       3,070,807  
Federal Home Ln Mtg PC Gtd
  6.5 15AUG08 SER 1563 CL 1563 K     208,938       205,612  
FEDERAL HOME LN MTG PC GTD
  4.500 15NOV07 SER 1404 FA     131,130       147,651  
FEDERAL HOME LN MTG PC GTD
  6.000 15NOV SER 1673 CL 1673 H     599,129       654,293  
Federal Natl Mtg Assn
  1/22/2008     1,350,795       1,357,004  
Federal Natl Mtg Assn
  5.503 25SEP PREASN 00664 SER 2004 T11 CL B     437,991       439,899  
FEDERAL NATL MTG ASSN
  3.875 17NOV08 PREASSIGN 00311     1,169,239       1,151,166  
FEDERAL NATL MTG ASSN
  4.768 25APR12 PREASSIGN 00533/2002 T11 CL A     595,352       584,332  
FEDERAL NATL MTG ASSN
  5.139 25DEC11 REMIC TR 2002 T3 CL A PRIN ONL     676,964       661,182  
FEDERAL NATL MTG ASSN DISC NTS
  .010 22MAR06     387,661       387,661  
FEDERAL NATL MTG ASSN DISC NTS
  .010 10FEB06     8,231,897       8,231,897  
FEDERAL NATL MTG ASSN DISC NTS
  .010 18JAN06     1,830,023       1,830,023  
FEDERAL NATL MTG ASSN REMIC
  1.000 25MAY30 REMIC TR 2003 88 CL F     5,433,459       5,404,106  
FEDERAL NATL MTG ASSN REMIC
  5.703 25MAY11 PREASSIGN 00860 SER 2001 T6 A     884,226       838,797  
FEDERAL NATL MTG ASSN REMIC
  6.088 25MAY11 PREASSIGN 00861     1,096,742       982,073  
FHLMC TBA JAN 30 GOLD SINGLE
  4.500 31DEC99     283,453       285,719  
FHLMC TBA JAN 30 GOLD SINGLE
  6.000 01DEC99     707,919       712,329  
Financing Corp
  9.800 06APR18     684,313       680,967  
Financing Corp Cpn Fico Strips
  .010 07 MAR07 SER 15 INT PMTON 9.65 2019     443,840       450,192  
Financing Corp Cpn Fico Strips
  .010 07 SEP09 SER 15 INT PMT ON 9.65 2019     2,084,065       2,187,821  
Financing Corp CPN FICO Strips
  .010 11NOV06 SER 1 INT PMT ON 10 2018     434,601       448,159  
Financing Corp CPN FICO Strips
  .010 06JUN13 SER 12 INT PMT ON 9.90 2018     620,990       628,606  
Financing Corp Cpn Fico Strp
  06APR07 GENERIC INT PMT     749,493       776,472  
FNMA TBA FEB 30 SINGLE FAM
  5.000 01DEC99     19,349,412       19,446,709  
FNMA TBA FEB 30 SINGLE FAM
  5.000 01DEC99     1,845,066       1,845,066  
FNMA TBA JAN 15 SINGLE FAM
  5.000 01DEC99     1,198,949       1,206,573  
FNMA TBA JAN 15 SINGLE FAM
  4.500 01DEC99     3,703,535       3,736,593  
FNMA TBA JAN 15 SINGLE FAM
  6.000 01DEC99     1,799,193       1,801,214  
FNMA TBA JAN 30 SINGLE FAM
  5.000 01DEC99     1,587,074       1,599,456  
FNMA TBA JAN 30 SINGLE FAM
  6.500 01DEC99     4,973,861       4,989,634  
FNMA TBA JAN 30 SINGLE FAM
  5.500 01DEC99     8,162,920       8,211,509  
FNMA POOL 125420
  5.500 01MAY11     33,492       35,220  
FNMA POOL 254088
  5.500 01DEC16 254088     222,885       228,372  
FNMA POOL 254140
  5.500 01JAN17     652,826       665,301  
FNMA POOL 254693
  5.500 01APR33     1,348,405       1,327,420  
FNMA POOL 254722
  5.500 01MAY18     1,382,006       1,337,072  
FNMA POOL 254753
  4.000 01MAY10     520,709       499,672  
FNMA POOL 254845
  4.000 01JUL13     326,178       323,808  
FNMA POOL 254909
  4.000 01SEP13     143,457       141,313  
FNMA POOL 255066
  5.500 01JAN19     18,180       18,008  
FNMA POOL 255706
  5.500 01MAY35     510,277       501,411  
FNMA POOL 255770
  5.500 01JUL35     947,584       930,651  
FNMA POOL 313709
  6.905 01JUN07     84,119       79,095  
FNMA POOL 323348
  8.500 01JUN12     54,791       54,653  
FNMA POOL 343347
  5.500 01APR11     303,061       311,897  
FNMA POOL 357418
  4.000 01AUG18     867,248       861,587  
FNMA POOL 357797
  5.500 01JUN35     2,514,270       2,481,131  
FNMA POOL 386255
  3.530 01JUL10     516,182       508,389  

23



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
FNMA POOL 386284
  3.640 01JUN10     474,996       460,827  
FNMA POOL 456654
  5.500 01FEB14     156,447       151,514  
FNMA POOL 545296
  6.000 01NOV16     388,196       383,114  
FNMA POOL 545696
  6.000 01JUN22     1,060,242       1,036,293  
FNMA POOL 545834
  5.500 01AUG17     93,616       92,799  
FNMA POOL 545904
  5.500 01SEP17     1,187,692       1,154,067  
FNMA POOL 555218
  5.500 01JAN18     908,820       900,469  
FNMA POOL 555541
  4.520 01APR33     673,238       662,972  
FNMA POOL 555677
  5.500 01JUL33     3,947,408       3,885,975  
FNMA POOL 623505
  6.000 01DEC11     860,967       841,010  
FNMA POOL 673022
  5.500 01DEC17     73,432       72,791  
FNMA POOL 687069
  5.500 01JAN13     1,117,579       1,079,839  
FNMA POOL 711995
  4.000 01SEP18     767,081       767,550  
FNMA POOL 720947
  6.500 01JUL33     337,892       330,428  
FNMA POOL 722999
  5.000 01JUL18     2,716,433       2,658,063  
FNMA POOL 725423
  5.500 01MAY34     1,160,615       1,141,403  
FNMA POOL 725424
  5.500 01APR34     598,570       589,300  
FNMA POOL 725433
  5.500 01MAR19     17,059       16,898  
FNMA POOL 725690
  6.000 01AUG34     484,306       476,961  
FNMA POOL 725711
  5.500 01JUL19     1,387,838       1,375,559  
FNMA POOL 725793
  5.500 01SEP19     794,741       787,224  
FNMA POOL 725946
  5.500 01NOV34     6,754,839       6,701,446  
FNMA POOL 728678
  4.000 01JUL18     372,418       377,205  
FNMA POOL 730823
  4.000 01AUG18     613,274       609,419  
FNMA POOL 735224
  5.500 01FEB35     2,973,942       2,927,999  
FNMA POOL 735227
  5.500 01FEB35     436,595       429,117  
FNMA POOL 735230
  5.500 01FEB35     1,931,989       1,897,429  
FNMA POOL 735654
  4.065 01OCT44     712,361       711,303  
FNMA POOL 735874
  6.000 01 JUL20     778,894       771,366  
FNMA POOL 735895
  .990 01SEP35     2,709,591       2,673,099  
FNMA POOL 735896
  .990 01SEP35     3,948,314       3,895,105  
FNMA POOL 743132
  5.000 01OCT18     2,757,251       2,697,990  
FNMA POOL 745179
  .990 01DEC20     2,490,100       2,490,100  
FNMA POOL 759866
  5.500 01FEB34     601,788       592,422  
FNMA POOL 761379
  5.500 01JAN19     152,454       151,082  
FNMA POOL 786225
  5.000 01JUL19     440,460       436,387  
FNMA POOL 790340
  5.500 01AUG19     705,171       698,763  
FNMA POOL 791404
  5.000 01OCT19     379,957       371,047  
FNMA POOL 808277
  5.500 01AUG35     517,751       508,755  
FNMA POOL 815039
  5.500 01MAY35     518,260       509,256  
FNMA POOL 821398
  5.500 01MAY35     803,343       789,298  
FNMA POOL 823293
  5.500 01JUL35     563,810       554,013  
FNMA POOL 825308
  5.500 01MAY35     555,882       546,396  
FNMA POOL 825803
  5.500 01SEP35     910,861       894,584  
FNMA POOL 826522
  5.500 01JUL35     534,322       525,204  
FNMA POOL 830735
  5.500 01JUL35     461,457       453,211  
FNMA POOL 830763
  5.500 01AUG35     467,164       458,960  
FNMA POOL 830784
  5.500 01AUG35     983,570       966,298  
FNMA POOL 830953
  5.500 01AUG35     1,456,786       1,430,753  
FNMA POOL 833350
  5.500 01AUG35     983,724       966,144  
FNMA POOL 835164
  5.500 01AUG35     982,723       965,466  
FNMA POOL 835268
  5.500 01AUG35     546,137       536,648  
FNMA POOL 835687
  5.500 01NOV34     434,591       427,147  
FNMA POOL 837589
  5.500 01SEP34     506,905       498,223  
FNMA POOL 841068
  4.198 01NOV34     1,632,252       1,625,772  
FNMA POOL 844048
  5.000 01NOV35     477,044       474,088  
FNMA TBA JAN 30 SINGLE FAM
  6.000 01DEC99     4,075,431       4,088,407  
FREDDIE MAC
  4.320 15DEC29 SER 2411 CL FJ     130,471       131,272  
GOV NATL MTG ASSN
  3.022 16AUG09 2004 057 REMIC CL A     245,997       240,919  
GOVERNMENT NATL MTG ASSN
  4.044 16MAY21 2005 012 REMIC PSTHRU CTF CL A     194,821       190,489  
GOVERNMENT NATL MTG ASSN
  2.914 16JUN18 2003 088 PASSTHRU CTF CL AC     208,215       201,985  
GOVERNMENT NATL MTG ASSN
  4.016 16JUL27 REMIC 2005 029 PASSTHRU CL A     253,886       252,213  
GOVERNMENT NATL MTG ASSN
  3.607 16AUG18 REMIC TR 2003 096 CL B     264,560       257,024  
GOVERNMENT NATL MTG ASSN
  4.385 16AUG27 REMIC 2005 32 PASSTHR CTF CL B     339,519       336,521  
GOVERNMENT NATL MTG ASSN
  3.084 16APR22 2004 097 REMIC PSSTHR CTF CLAB     347,798       338,113  
GOVERNMENT NATL MTG ASSN
  3.206 16APR18 2003 72 REMIC PASSTHRU CL A     364,174       353,034  
GOVERNMENT NATL MTG ASSN
  3.110 16JAN19 2004 012 REMIC PASS CL A     452,778       433,574  
GOVERNMENT NATL MTG ASSN
  2.822 16DEC19 SER 2004 43 CL A     472,978       465,932  
GOVERNMENT NATL MTG ASSN
  4.015 16NOV10 SER 2005 50 REMIC CTF CL A     482,122       472,564  
GOVERNMENT NATL MTG ASSN
  4.045 16JUN35 2005 042 REMIC PASSTHRU CL A     524,333       515,648  
GOVERNMENT NATL MTG ASSN
  2.712 16FEB20 SERIES 2003 48 CTF CLASS AC     549,728       530,693  
GOVERNMENT NATL MTG ASSN
  4.449 16MAY25 REMIC 2005 87 PASS CTF CLA     670,583       672,757  
GOVERNMENT NATL MTG ASSN
  4.145 16FEB18 REMIC 2004 51 PASSTHRU CTF CLA     902,639       884,803  
GOVERNMENT NATL MTG ASSN GTD
  3.760 16JUL28 2005 090 REMIC PASS CTF CL A     449,133       449,133  
GVNMT NATL MTG ASSN REMIC MTG
  3.377 16MAR19 2004 025 REMIC PASS CTF CL AC     92,964       89,479  
ILLINOIS EDL FACS AUTH REVS
  5.000 01JUL33 PREREFUNDED UNIV CHICAGO A     41,747       47,873  
ILLINOIS EDL FACS AUTH REVS
  5.000 01JUL33 UNREFUNDED BAL UNIV CHICAGO A     915,755       970,036  
JAPAN DEVELOPMENT BANK
  1.600 20JUN14 1.6PCT 20JUN14     5,445,124       5,355,484  
NEW YORK ST ENVIRONMENTAL FACS
  5.000 15JUN33 REVOLVING FDS 2nd Resolution I     300,417       306,367  
RUSSIAN FEDERATION
  5.000 31MAR30 FRN BDS 31MAR30 USD1000 REGS     722,020       768,778  
SACRAMENTO CNTY CA PENSION FDG
  10JUL30 CARS TAXABLE SR C1     411,647       430,228  
SOUTH AFRICA REP
  8.500 23JUN17 NT     2,134,293       2,716,152  
SWEDEN KINGDOM OF
  5.250 15MAR11 5.25PCT 15MAR 11 SEK5000 1045     2,119,367       2,101,413  
SWEDEN KINGDOM OF
  5.000 28JAN09 5PCT 28JAN09 SER 1043     2,592,216       2,664,623  
TOBACCO SETTLEMENT FING CORP
  5.625 01JUN37 Asset Bkd     293,588       296,181  
TOBACCO SETTLEMENT FING CORP
  5.875 15MAY39 ASSET BKD SER B     224,715       308,089  
TOBACCO SETTLEMENT REV MGMT AU
  6.375 15MAY28 SER B     251,197       314,195  
UNITED MEXICAN STS
  4.625 08OCT08 TRANCHE TR 00012     792,376       783,760  

24



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
UNITED MEXICAN STS MTN
  7.500 14JAN12 TRANCE TR 00008     688,977       731,999  
UNITED STATE TREAS NTS
  4.500 15NOV15 DTD 00109     308,991       311,185  
United States Treas Bds
  11.250 15FEB15 DTD 02/15/85     6,130,492       5,998,302  
United States Treas Bds
  8.750 15AUG20     693,552       704,882  
United States Treas Bds
  6.250 15AUG23     810,053       830,921  
UNITED STATES TREAS BDS
  8.750 15MAY17     830,157       807,322  
UNITED STATES TREAS BDS
  8.125 15MAY21     1,248,390       1,220,870  
UNITED STATES TREAS BDS
  8.875 15AUG17     1,403,256       1,361,612  
UNITED STATES TREAS BDS
  5.250 15NOV28 BD     895,141       854,983  
UNITED STATES TREAS BDS
  7.250 15MAY16 7.25PCT BND 15MAY16     971,866       980,569  
UNITED STATES TREAS BDS
  5.250 15NOV28 BD     1,579,522       1,587,062  
UNITED STATES TREAS BDS
  6.250 15MAY30     8,679,326       9,151,321  
UNITED STATES TREAS BILLS
  .010 16MAR06 PREASSIGN 00271     242,592       242,592  
UNITED STATES TREAS BILLS
  .010 02MAR06     727,663       727,663  
UNITED STATES TREAS BILLS
  .010 02FEB06 PREASSIGN 00265     1,164,425       1,164,425  
United States Treas Nts
  3.375 28FEB07     10,055,788       10,046,914  
UNITED STATES TREAS NTS
  3.875 15JAN09 INFLATION INDEXED     252,858       250,161  
UNITED STATES TREAS NTS
  4.250 15JAN10 INFLATION INDEXED     893,089       880,302  
UNITED STATES TREAS NTS
  3.875 15SEP10     1,112,537       1,112,965  
UNITED STATES TREAS NTS
  4.125 15MAY15 CONS BD     2,747,903       2,779,303  
UNITED STATES TREAS NTS
  4.250 15AUG14     3,068,464       3,101,232  
UNITED STATES TREAS NTS
  3.500 15FEB10     121,300       118,472  
UNITED STATES TREAS NTS
  3.250 15JAN09     216,350       213,465  
UNITED STATES TREAS NTS
  4.000 15APR10     320,878       313,825  
UNITED STATES TREAS NTS
  3.625 15JUN10 DTD 00094     485,352       475,477  
UNITED STATES TREAS NTS
  3.375 15FEB08     1,046,553       1,031,658  
UNITED STATES TREAS NTS
  5.000 15FEB11     1,243,663       1,211,052  
UNITED STATES TREAS NTS
  4.250 15AUG15     1,439,982       1,450,775  
UNITED STATES TREAS NTS
  4.250 31OCT07     2,640,332       2,637,851  
UNITED STATES TREAS NTS
  3.500 15NOV06     3,911,909       3,888,636  
UNITED STATES TREAS NTS
  3.375 15NOV08 DTD 00039     4,246,366       4,152,743  
UNITED STATES TREAS NTS
  2.000 15MAY06     8,517,404       8,530,514  
UNITED STATES TREAS NTS
  1.625 15JAN15     171,899       172,328  
UNITED STATES TREAS NTS
  3.875 31JUL07     263,038       262,411  
UNITED STATES TREAS NTS
  3.875 15SEP10     330,560       331,011  
UNITED STATES TREAS NTS
  2.000 15JUL14 INFLATION INDEX BOND     1,085,033       1,091,415  
UNITED STATES TREAS NTS
  4.125 31OCT07     9,237,916       9,232,478  
UNITED STATES TREAS NTS
  4.750 15MAY14 00057     329,660       331,220  
UNITED STATES TREAS NTS
  3.625 30APR07     7,125,032       7,126,521  
UNITED STATES TREAS NTS
  3.500 15FEB10     14,071,168       14,074,507  
 
                 
 
                   
 
                312,726,436  
 
                 
 
                   
Corporate and Other Obligations
                   
AEGIS ASSET BACKED SECS TR
  4.237 2SEP34 2004 3 MTG PASS THRU CL A 2A     236,175       235,989  
AEGON FDG CORP
  5.750 15DEC20 SR NT     494,380       502,309  
AETNA INC
  7.7885 01MAR11 FORMERLY AETNA US HEALTH     2,021,229       1,983,261  
AETNA INC NEW
  7.375 01MAR06 SR NT     304,020       299,055  
AID INCA INFRASTRUCTURE
  2.120 26MAR09 FIN FRN     1,959,705       1,987,091  
AIG Sunamerica Global Fing XII
  5.300 30MAY07 SR NT 144A     316,493       295,717  
Allstate Life Global Fdg I
  4.250 10SEP08 TRANCHE SR 00002 144A     518,769       497,321  
ALTRIA GROUP INC
  5.625 04NOV08 NT     986,329       993,276  
ALTRIA GROUP INC
  7.000 04NOV13 NT     415,788       455,684  
AMB PPTY L P
  7.00 30JUN08 2008 NT     1,957,628       2,068,836  
AMERADA HESS CORP
  6.650 15AUG11 NT     607,439       637,006  
AMERADA HESS CORP
  6.650 15AUG11 NT     220,786       215,845  
AMERADA HESS CORP
  7.300 15AUG31 NT     243,720       266,482  
American Express CR Account
  4.350 15DEC11 2004 3 ASSET BKD CTF CL A     321,823       314,521  
AMERICAN GEN FIN CORP MTN
  2.750 15JUN08 TRANCHE TR 00389     979,353       927,666  
American Intl Group Inc
  2.875 15MAY08 GLOBAL SR NT     1,190,805       1,169,251  
AMERICAN INTL GROUP INC
  2.875 15MAY08 GLOBAL SR NT     1,071,878       1,028,953  
AMERICAN INTL GROUP INC
  5.050 01OCT15 NT 144A     286,104       288,497  
AMERICAN STD INC
  7.375 01FEB08 SHELF 2     257,058       250,096  
AMERICAN STD INC
  7.625 15FEB10 SR NT     436,425       426,555  
AMERICREDIT AUTO RECEIVABLES
  4.260 06MAY09 2005 1 ASSET BKD NT CL A 3     1,567,709       1,555,448  
AMERICREDIT AUTOMOBILE REC TR
  3.430 06JUL11 SER 2004 DF CL A4     489,797       474,697  
Ameriprise Finl Inc
  5.650 15NOV15 SR NT     244,963       249,801  
AMERISOURCEBERGEN CORP
  5.875 15SEP15 SR NT 144A     1,472,998       1,482,640  
Amgen Inc
  4.000 18NOV09 SR NT     586,753       569,638  
AMOCO CORP
  6.500 01AUG07 DEB     516,354       466,964  
AMVESCAP PLC
  5.375 27FEB13 SR NT     421,588       415,220  
ANTHEM INC
  3.500 01SEP07 NT     341,155       339,321  
AOL TIME WARNER INC
  6.750 15APR11 NT     596,866       565,913  
APPALACHIAN PWR CO
  5.950 15MAY33 SR NT SER H     92,890       93,504  
ARAMARK CORP
  5.000 01JUN12 SR NT     161,656       156,266  
ARAMARK SVCS INC
  6.375 15FEB08 NT     158,664       150,327  
ARAMARK SVCS INC
  7.000 01MAY07 NT     244,476       250,440  
ARAMARK SVCS INC
  7.000 15JUL06 GTD NT     563,263       568,587  
ARCHSTONE SMITH OPER TR
  5.250 01MAY15 NT     98,470       96,630  
ARCHSTONE SMITH TR
  5.000 15AUG07 SR NT     366,353       367,243  
ARDEN RLTY LTD PARTNERSHIP
  5.200 01SEP11 DEB     254,513       258,062  
ASSOCIATES CORP NORTH AMER
  6.250 01NOV08 SR NT     977,256       1,015,007  
ASSURANT INC
  5.625 15FEB14 SR NT     195,749       198,484  
ASSURANT INC
  6.750 15FEB34 SR NT     358,310       346,091  
AT + T WIRELESS SVCS INC
  7.500 01MAY07 NT     342,204       354,507  
AT + T WIRELESS SVCS INC
  7.350 01MAR06 SR NT     169,350       167,276  
AT+T WIRELESS SVCS INC
  7.875 01MAR11 SR NT     183,453       197,901  
AT+T WIRELESS SVCS INC
  8.750 01MAR31 SR NT     208,988       227,172  

25



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
AVALONBAY CMNTYS
  5.000 01AUG07 TRANCHE TR 00006     137,096       132,233  
AXIS CAP HLDGS LTD
  5.750 01DEC14 SR NT     552,427       553,735  
BANC AMER COML MTG INC
  4.128 10JUL42 SER 2004 4 COML MTG CTF CL A3     423,454       409,159  
BANC AMER COML MTG INC
  4.161 10DEC42 2004 6 COML MTG CTF CL A 2     551,478       531,666  
BANC AMER COML MTG INC
  4.877 10NOV42 2005 1 COML MTG CTF A 3     566,249       559,133  
BANC AMER COML MTG INC
  4.247 10JAN08 2005 2 COML MTG PASS CTF CL A2     465,430       458,888  
BANK AMER CORP
  3.875 15JAN08 SR NT     1,803,101       1,731,404  
BANK AMER CORP
  4.500 01AUG10 NT     640,860       630,696  
BANK AMER CORP
  7.400 15JAN11 SUB NT     687,888       647,599  
BANK AMER FDG CORP
  4.117 25MAY35 2005 D MTG PASSTHRU CTF CL A1     530,653       528,510  
Bank of America
  7.800 15FEB10 NT DTD     726,645       677,919  
BANKBOSTON NA MTN
  6.375 25MAR08     488,561       505,446  
BAYVIEW COML ASSET TR
  4.247 10JAN08 2005 2 COML MTG PASS CTF CL A2     97,985       97,985  
BAYVIEW FINL SECS CO LLC
  5.140 28FEB45 2005 D MTG PASSTHRU CTF CL AF2     455,610       457,198  
BAYVIEW FINL SECS CO LLC
  5.208 28APR39 2005 B MTG PASS CTF CL 1 A6     440,920       434,232  
BEAR STEARNS ASSET BACKED SECS
  3.980 25MAR352005 SD1 ASSET BKD CTF CL IA1     191,672       191,735  
BEAR STEARNS COML MTG SECS INC
  4.240 13AUG39 2003 TOP12 PASS CTF CL A3     428,571       411,138  
BEAR STEARNS COML MTG SECS INC
  5.127 01OCT43 2005 TOP20 MTG PASS CTF CL A 2     615,753       615,513  
BEAR STEARNS COS INC
  3.000 30MAR06 GLOBAL NT     981,763       976,044  
BEAR STEARNS COS INC
  4.500 28OCT10 GLOBAL NT     258,900       253,489  
Berkshire Hathaway Fin Corp
  4.125 15JAN10 GTD SR NT     549,174       538,039  
BERKSHIRE HATHAWAY FIN CORP
  4.200 15DEC10 SR NT     269,532       260,871  
BHP BILLITON FIN USA LTD
  4.800 15APR13 GTD SR NT     415,979       410,683  
BMW Vehicle Owner TR
  4.28 25FEB10 2005 A ASSET BKD NT CL A4     205,714       203,486  
Boeing Cap Corp
  6.500 15FEB12 SR NT     452,682       448,784  
BOEING CAP CORP
  4.750 25AUG08 SR NT     146,732       146,585  
BOEING CAP CORP
  7.375 27SEP10 SR NT     459,333       442,059  
BOMBARDIER INC
  6.300 01MAY14 NT 144A     335,195       334,375  
BOSTON PPTYS LTD PARTNERSHIP
  5.625 15APR15 SR NT     127,251       128,735  
BOSTON PPTYS LTD PARTNERSHIP
  5.000 01JUN15 NT     161,323       160,423  
BRITISH SKY BROADCASTING GROUP
  6.875 23FEB09 GTD NT     64,439       61,588  
BRITISH SKY BROADCASTING GROUP
  8.200 15JUL09 USD NT     1,051,371       963,835  
British Telecommunications PLC
  8.125 15DEC10 NT     744,523       697,404  
BRITISH TELECOMMUNICATIONS PLC
  8.125 15DEC10 NT     334,101       323,474  
BSKYB FIN U K PLC
  5.625 15OCT15 USD SR NT 144A     257,205       258,460  
Burlington Norhtn Santa Fe Co
  7.875 15APR07 NT     545,224       509,178  
Burlington Res Fin Co
  5.600 01DEC06 GTD NT     451,715       424,504  
C BASS TR
  1.000 25NOV36 2005 CB7MTG LN ASSET BKD AF2     298,854       298,388  
CABOT FIN B V
  5.250 01SEP13 NT 144A     185,098       181,090  
Cadbury Schweppes US Finance
  3.875 01OCT08 GTD SR NOTE 144A     439,726       427,899  
CAESARS ENTERTAINMENT INC
  8.875 15SEP08 SR SUB NT     164,248       158,920  
CALWEST INDL TR
  6.127 15FEB17 2002 CALW COML MTG 144A CL A     546,592       551,730  
CAPCO AMER SECURITIZATION CORP
  6.260 15OCT30 COML MTG CTF 1998 D7 A 1B     637,999       610,654  
Capial One Multi Asset Execut
  4.400 15AUG11 2005 8 NT CL A     460,446       456,501  
CAPITAL AUTO RECEIVABLES ASSET
  .990 28JAN09 SER 2004 2 ASSET BKD NT CL A4     93,064       91,018  
CAPITAL AUTO RECEIVABLES ASSET
  3.580 15JAN09 2004 2 ASSET BACKED NT CL A 3     1,327,487       1,302,521  
CAPITAL AUTO RECEIVABLES ASSET
  4.100 15JUNE08 2005 SN1 ASSET BKD NT CL A 3A     489,879       486,068  
CAPITAL AUTO RECEIVABLES ASSET
  1.440 15FEB07 2003 2 ASSET BACKED NT CL A3A     71,506       71,345  
CAPITAL AUTO RECEIVABLES ASSET
  2.640 17NOV08 SER 2004 1 ASSET BKD NT CL A 4     548,563       532,646  
CAPITAL ONE BK
  4.875 15MAY08 TRANCHE TR 00174     2,093,884       2,049,316  
CAPITIAL ONE PRIME AUTO RECEIV
  1.000 15 AUG09 SER 2005 1NT CL A 3     793,664       787,927  
CARNIVAL CORP
  3.750 15NOV07 GTD SR NT     244,103       239,457  
CAROLINA PWR + LT CO
  6.500 15JUL12 NT     1,136,085       1,091,798  
CAROLINA PWR + LT CO
  6.500 15JUL12 NT     204,942       215,210  
CHASE COML MTG SECS CORP
  7.600 18JUL28 1996 1 MTG CTF CL E     376,830       342,855  
CHASE COML MTG SECS CORP
  6.600 19DEC29 1997 2 MTG PASSTHRU CTF CL C     383,566       352,020  
CHASE COML MTG SECS CORP
  7.370 19JUN29 1997 1 MTG PASSTHRU CTF CL D     421,214       402,888  
Chase Issuance TR
  3.220 15JUN10 2004 9 NT CL A9     193,888       190,918  
CHASE MANHATTAN AUTO OWNER
  1.520 15MAY07 2003 A ASSET BKD NT CL A3     67,761       67,403  
CHEVRONTEXACO CAP CO
  3.500 17SEP07 GTD NT     766,453       743,915  
CHEVY CHASE BK FSB
  6.875 01DEC13 SUB DEB     199,060       201,850  
CHUO MITSUI TR + BKG COMPANT
  5.506 15APR49 SUB NT PERP144A (PERP)     289,188       289,594  
CINGULAR WIRELESS LLC
  5.625 15DEC06 SR NT     275,465       271,405  
*         CIT GROUP INC
  7.750 02APR12 SR NT     186,893       177,805  
*         CIT GROUP INC
  4.750 15AUG08 NT     401,374       400,210  
*         CIT GROUP INC MTN
  1.000 18MAY07 TRANCHE SR 00079     186,172       186,676  
*         CIT GROUP INC REORGANIZED
  3.875 03NOV SR NT DTD 11/08/2004     2,046,147       1,998,219  
*         Citibank Cr Card Issuance TR
  3.100 10MAR10 SER 2003 A3 NT CL 2003 A3     1,161,034       1,135,404  
*         Citibank Cr Card Issuance TR
  2.900 17MAY10 2003 A 6 CL A6 NT     1,149,964       1,126,954  
*         CITIBANK CR CARD ISSUANCE TR
  2.700 15JAN08 2003 A2 CL A2 NT     1,138,418       1,106,372  
*         CITIFINANCIAL MTG SECS INC
  3.360 25JAN33 2003 1 REMIC PASS CL AF PT     144,244       140,742  
*         CITIGROUP INC
  1.000 09JUN09 GLOBAL SR NT     171,474       171,818  
*         CITIGROUP INC
  4.625 09AUG10 GLOBAL NT     293,918       289,885  
*         CITIGROUP MTG LN TR
  5.249 25AUG35 2005 WF2 MTG CTF CL AF 7     514,407       505,158  
CITY NATL CORP
  5.125 15FEB13 SR NT     350,409       350,684  
COCA COLA ENTERPRISES INC
  8.500 01FEB22 8.500 01FEB22     139,149       161,036  
COLONIAL BK NATL ASSN
  6.375 01DEC15 SUB NT ACCREDITED INVS     274,269       277,075  
COLONIAL RLTY LTD PARTNERSHIP
  4.750 01FEB10 SR NT     195,961       190,887  
COMCAST CABLE COMM INC
  6.875 15JUN09 SR NT     261,199       252,147  
Comcast Corp
  7.050 15MAR33 NT     777,797       741,169  
COMCAST CORP NEW
  5.850 15NOV15 NT     1,557,561       1,568,171  
COMCAST CORP NEW
  5.500 15MAR11 NT     471,048       463,029  
COMCAST CORP NEW
  5.500 15MAR11 NT     156,076       157,627  
Comed Transitional Fdg Tr
  5.630 25JUN09 SER 1998 1 NT CL A 6     1,497,754       1,453,000  
Comeo Transitional Fdg Tr
  5.740 25DEC10 SER 1998 NT CL A 7     740,328       689,252  
COMMERCIAL NET LEASE RLTY INC
  6.150 15DEC15 NT     175,915       179,003  
CONAGRA INC
  6.750 15SEP11 NT     47,968       46,967  
CONAGRA INC
  7.785 15SEPT10     180,183       174,886  

26



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
CONOCO FDG CO
  6.350 150CT11 NT     812,493       782,168  
CONSUMERS ENERGY CO
  4.250 15APR08 1ST MTG BD SER C     134,471       129,557  
CONSUMERS ENERGY CO
  5.375 15APR13 1ST MTG BD SER D     322,930       301,547  
COORS BREWING CO
  6.375 15MAY12 SR NT     405,496       410,140  
CORE INVT GRADE BD TR I
  4.659 30NOV07 2002 1 PASSTHRU CTF     655,031       649,595  
CORNING INC
  6.200 15MAR16 NT     169,700       170,345  
COUNTRYWIDE FDG CORP MTN
  4.000 22MAR11 TRANCHE TR 00313     331,781       313,473  
COUNTRYWIDE FDG CORP MTN
  4.000 22MAR11 TRANCHE TR 00313     234,354       225,885  
COVENTRY HEALTH CARE INC
  5.875 15JAN12 SR NT     290,895       286,999  
COX COMMUNICATIONS INC NEW
  5.450 15DEC14 NT     1,327,677       1,338,601  
CREDIT SUISSE FIRST BOSTON MTG
  3.861 15MAR36 2003 CK2 COML MTG CTF CL A 2     364,542       353,882  
CREDIT SUISSE FIRST BOSTON MTG
  4.183 15NOV37 2004 C5 COML MTG CTF CL A 2     467,757       450,930  
CREDIT SUISSE FIRST BOSTON MTG
  4.742 25JAN36 2005 HOME EQTY PASS CTF A 3     342,946       340,001  
CREDIT SUISSE FIRST BOSTON MTG
  6.940 25AUG32 2002 HE4 MTG CL MF1     153,224       148,498  
CREDIT SUISSE FIRST BOSTON MTG
  6.505 15FEB34 2001 CF2 MTG PASTHRU CTF CL A4     637,568       612,046  
CREDIT SUISSE FIRST BOSTON USA
  4.625 15JAN08 CLOBAL SR NT     989,504       975,177  
CREDIT SUISSE FIRST BOSTON USA
  5.500 15AUG13 NT     263,576       269,876  
CREDIT SUISSE FIRST BOSTON USA
  5.125 15AUG15 GLOBAL SR NT     413,198       412,412  
CROWN CASTLE TOWERS LLC
  5.612 15JUN35 2005 1A SR SECD RE NT CLD 144A     132,280       128,841  
CSX CORP
  6.250 15OCT08 NT     138,170       141,500  
CVS CORP
  4.000 15SEP09 NT     151,475       146,072  
CWABS INC
  3.872 25MAR20 2004 S1 CL A2     445,827       438,189  
CWABS INC
  4.615 25FEB35 2004 S1 ASSET BKD CTF CL A 3     489,909       476,662  
DAIMLER CHRYSLER HLDGS
  8.500 18JAN31 NT     102,069       106,707  
DaimlerChrysler Auto TR
  3.710 08OCT09 SER 2004 B CL A4     739,720       725,802  
DAIMLERCHRYSLER AUTO TR
  2.580 08APR09 SER 2004 CL A4     543,723       528,107  
DAIMLERCHRYSLER NORTH AMER
  4.875 15JUN10 SR NT     136,858       133,940  
DAIMLERCHRYSLER NORTH AMER
  4.875 15JUN10 SR NT     151,441       148,291  
DAIMLERCHRYSLER NORTH AMER HLD
  4.026 07MAR07 NT FLTG RATE DTD 7MAR05     288,823       293,655  
DARDEN RESTAURANTS INC
  6.000 15AUG35 SR NT     266,536       255,203  
DEERE JOHN CAP CORP
  3.900 15JAN08 GLOBAL NT     1,174,283       1,152,797  
DEERE JOHN CAP CORP
  4.400 15JUL09 TRANCHE TR 00330     293,509       288,937  
DEUTSCHE TELEKOM INTL
  8.000 15JUN10 GTD NT     194,264       188,858  
DEUTSCHE TELEKOM INTL FIN B V
  5.250 22JUL13 GLOBAL NT     267,825       258,281  
DEUTSCHE TELEKOM INTL FIN BV
  8.250 15JUN30 GTD NT     521,856       504,729  
Diageo Cap PLC
  4.375 03MAY10 GTD NT     297,848       292,479  
DIAGEO FIN BV
  3.000 15DEC06 NT     587,729       577,687  
DLJ COML MTG CORP
  7.046 12NOV31 COML MTG CTF 1998 CF2 B 1     287,655       280,790  
DLJ COML MTG CORP
  6.240 12NOV31 2025 COML MTG CTF 98 CF2 A1B     778,337       722,074  
DOMINION RES INC DEL
  7.195 15SEP14 REMARKETABLE NT SER E     385,025       364,676  
DOMINION RES INC VA NEW
  3.660 15NOV06 SR NT SER G     73,673       72,626  
DONNELLEY R R + SONS CO
  4.950 01APR14 SR NT     610,767       571,785  
DUKE CAP CORP
  8.00 01OCT19 SR NT     324,552       315,765  
DUKE ENERGY FIELD SVCS LLC
  7.875 16AUG10 NT     89,312       86,693  
DUKE RLTY CORP
  5.875 15AUG12 NT     243,927       253,405  
DUKE RLTY LTD PARTNERSHIP
  3.500 01NOV07 MED TERM NT     121,959       119,163  
DUKE WEEKS RLTY LTD PRTNSHP
  7.750 15NOV09 SER NT     315,526       292,436  
DUKE WEKS REALTY CORP
  6.950 15MAR11 NT     98,516       105,048  
EL PASO CORP
  7.750 15JUN10 NT 144A     400,117       399,780  
ENTERPRISE PRODS OPER L P
  5.600 15OCT14 SR NT     131,384       127,281  
ENTERPRISE PRODS OPER L P
  6.650 15OCT34 SR NT 144A     457,836       450,231  
EOP OPER LTD PARTNERSHIP
  4.650 01OCT10 GTD NT     97,831       94,939  
EOP OPER LTD PARTNERSHIP
  6.800 15JAN09 NT     1,547,466       1,434,345  
EOP OPER LTD PARTNERSHIP
  7.000 15JUL11 GTD NT     489,929       466,706  
EQUITY ONE ABS INC
  4.197 25JUL34 2004 2 MTG PASSTHRU CTF CL AF1     7,132       7,130  
EQUITY RESIDENTIAL
  5.125 15MAR16 NT     342,561       330,316  
ERAC USA FIN CO
  7.350 15JUN08GTD NT 144A     978,207       1,028,215  
ERAC USA FIN CO
  7.950 15DEC09 NT 144A 3C7     259,242       236,905  
ERP OPER CTD PARTNERSHIP
  6.625 15MAR12 NT     84,896       78,922  
EURO CURRENCY
  EURO CURRENCY     924       (910 )
EXXON CAPITAL CORP
  6.125 08SEP08 6 1/8 BDS 8SEP2008 USD1000     413,636       379,390  
FALCONBRIDGE LTD NEW
  5.375 01JUN15 NT     39,076       37,788  
FEDERAL RLTY INVT TR
  5.650 01JUN16 NT     274,359       275,913  
Federated Dept Stores Inc Del
  6.900 01APR29 SR DEB     379,785       374,164  
FEDEX CORP
  2.650 01APR07 NT     357,378       347,889  
Financing Corp Cpn Fico Strips
  .010 11MAY13 SER 1 INT PMT ON 10PCT     178,245       196,659  
FIRSTENERGY CORP
  6.450 15NOV11 NT SER B     1,578,352       1,557,961  
FIRSTENERGY CORP
  6.450 15NOV11 NT SER B     1,144,862       1,121,732  
FIRSTENERGY CORP
  6.450 15NOV11 NT SER B     281,744       280,433  
FMR Corp
  4.750 01MAR13 NT 144A     762,505       750,451  
FORD CR AUTO OWNER TR
  4.280 15JAN10 2005 B NT CL A4     1,278,645       1,266,234  
FORD CR AUTO OWNER TR
  3.540 15NOV08 2004 A NT CL A 4     318,392       311,996  
FORD CR AUTO OWNER TR
  4.480 15APR10 2005 B NT CL B     338,040       334,625  
FORD CR FLOORPLAN MASTER OW TR
  1.000 15JUL09 SER 2004 1 ASSET BK NT CL A     436,034       435,536  
FORD MTR CR CO
  4.218 16NOV06 GLOBAL NT     287,836       285,419  
FORD MTR CR CO
  7.375 01FEB11 GLOBAL LANDMARK SEC GLOBLS     541,981       515,315  
FORD MTR CR CO
  7.000 01OCT GLOBALNT     450,030       406,062  
FORD MTR CR CO
  5.800 12JAN09 CDT     630,889       602,608  
FORTUNE BRANDS INC
  2.875 01DEC06 NT     166,430       163,014  
FPL ENERGY NATL WIND LLC
  5.608 10MAR24 SR SECD BD 144A     97,985       97,622  
FRANCE TELECOM SA
  8.500 01MAR31 NT REG     230,475       222,254  
Franklin Res Inc
  3.700 15APR08 SR NT     442,010       429,068  
FREESCALE SEMICONDUCTOR INC
  6.875 15JUL11 SR NT     93,086       97,740  
GE COML MTG CORP
  3.915 10NOV38 2004 C1 COML MTG CTF CL A 2     566,204       541,053  
GE COML MTG CORP
  4.863 10JUL45 2005 C3 COML MTG PASSTHRU A3FX     512,068       504,971  
General Elec Cap Corp Mtn
  4.125 01SEP09 TRANCHE TR 00699     219,274       219,896  
General Elec Cap Corp Mtn
  7.375 19JAN10 TRANCHE TR 00443     481,627       454,434  
General Elec Cap Corp Mtn
  6.00 15JUN12 TRANCHE TR 00551     668,402       650,562  

27



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
GENERAL ELEC CAP CORP MTN
  3.500 15AUG07 TRANCHE TR 00605     1,977,843       1,920,215  
GENERAL ELEC CAP CORP MTN
  3.503 22JUN07 TRANCHE TR 00644     1,082,737       1,083,985  
GENERAL MLS INC
  5.125 15FRB07 NT     549,235       543,352  
GENERAL MTRS ACCEP CORP
  5.050 16JAN07 TRANCHE 00634     193,276       186,190  
GENERAL MTRS ACCEP CORP
  6.125 15SEP06 NT     288,812       285,535  
GEORGIA PAC CORP
  8.000 15JAN24 SR NT     268,737       262,013  
GLENCORE FDG LLC
  6.000 15APR14 GTD NT 144A     571,264       539,132  
GOLDMAN SACHS GROUP INC
  4.500 15JUN10 SR NT     2,409,140       2,393,913  
GOLDMAN SACHS GROUP INC
  5.125 15JAN15 SR GLOBAL NT     4,916       4,844  
GOLDMAN SACHS GROUP INC
  4.500 15JUN10 SR NT     456,365       459,631  
Goldman Sachs Group Inc.
  6.875 15JAN11 NT     350,613       332,637  
Goldman Sachs Group Inc.
  5.700 01SEP12 SR NT     748,335       729,119  
Goldman Sachs Group Inc.
  5.250 01APR13 SR NT     500,610       494,427  
GREEN TREE FINL CORP
  6.080 01DEC30 1999 2 MFD HSG SR SUB PASSTHRU     119,246       124,791  
GREENWICH CAP COML FDG CORP
  4.883 10JUN36 2004 GG1 COML MTG CTF CL A 5     379,129       373,437  
GREENWICH CAP COML FDG CORP
  4.305 10AUG42 2005 GG3 COML MTG PTHRU CL A2     542,847       539,088  
GS MTG SECS CORP II
  4.751 10JUL392005 GG4 COML MTG PASSTHRU A4A     742,219       713,073  
HALLIBURTON CO
  5.500 15OCT10 SR NT REGS     362,631       355,278  
HARRAHS OPER INC
  8.000 01FEB11 GTD SR NT     344,467       335,693  
HBOS PLC
  5.375 01NOV49 TRANCHE 00007 144A     430,038       425,419  
HCA INC
  5.250 06NOV08 NT     1,459,711       1,450,413  
HEALTHCARE RLTY TR IN
  8.125 01MAY11 SR NT     325,898       314,734  
HEINZ H J CO
  1.000 01DEC08 DEALER REMARKETABLE SECS 144A     252,261       251,643  
Honda Auto Receivable Owner TR
  4.800 19OCT09 2005 6 ASSET BKD CTF CL A 3     416,356       417,153  
HONDA AUTO RECEIVABLES
  1.000 19FEB10 ASSET BKD NT SER 2004 3 CL A 4     1,018,775       986,746  
HONDA AUTO RECEIVABLES
  2.190 15MAY07 SER 2003 4 CL A 3     109,742       109,311  
Household Fin Corp
  4.125 15DEC08 NT     1,231,430       1,196,784  
HOUSEHOLD FIN CORP
  6.500 15NOV08 NT     412,842       418,121  
HSBC Automotive Tr
  4.350 18JUN12 SER 2005 1 ASSET BKED NT CL A4     205,720       202,683  
HSBC FIN CORP
  5.250 14JAN11 NT     978,128       980,354  
HUNTINGTON NATL BK
  4.375 15JAN10 TRANCHE TR 00138     246,938       240,131  
HUTCHISON WHAMPOA INTL 03 13 L
  6.500 13FEB13 GTD NT 144A     353,052       363,160  
Illinois St
  5.100 01JUN33 Taxable Pension     1,175,026       1,277,523  
Illinoise Pwr Spl Purp Tr
  5.650 25DEC10 1998 1 TRANSITIONAL FDG CL A 7     1,118,668       1,047,815  
INTERNATIONAL BUSINESS MACHS
  4.375 01JUN09 TRANCHE TR 00113     83,038       82,243  
INTERNATIONAL FLAVORS + FRAG
  6.450 15MAY06 NT     198,444       191,984  
INTERNATIONAL LEASE FIN CORP
  4.750 13JAN12 NT     370,728       363,034  
INTERNATIONAL PAPER CO
  5.300 01APR15 NT     202,088       198,186  
INTERNATIONAL STL GROUP INC
  6.500 15APR14 SR NT     203,909       205,769  
IRS 3ML USD
  1.000 15JUN06 SWPV41140/SWPV041148     (115,153 )     (162,757 )
IRS 3ML USD
  1.000 21JUN26 SWPV47865     267,559       66,949  
IRS USD
  5.000 21JUN16 SWP048002           (19,615 )
IRS USD
  5.000 21JUN16 SWP048143           (18,389 )
IRS USD
  5.000 21JUN11 SWP047897           896  
IRS USD
  5.000 21JUN11 SWP048267           4,481  
IRS USD
  5.000 21JUN11 SWP046592           20,163  
IRS USD
  5.000 21JUN11 SWP047871           94,542  
ISPAT INLAND ULC
  9.750 01APR14 SR SECD NT     89,950       88,775  
ISTAR FINL INC
  5.150 01MAR12 SR NT     127,173       123,362  
J P MORGAN CHASE COML MTG
  5.198 15DEC44 2005 LDP5 MTG PASS CTF CL A 2     418,518       418,518  
J P Morgan Chase Coml Mtg
  4.893 15AUG42 2005 LDP3 COML MTG PASS CL A S     566,218       556,040  
J P Morgan Chase Coml Mtg Sec
  4.625 15MAR46 2005 LDP1 COML MTG PASSTHR A2     403,734       394,896  
J P MORGAN CHASE COML MTG SEC
  4.625 15MAR46 22005 LDP1 COML MTG PASSTHR A2     558,882       554,743  
J P MORGAN CHASE COML MTG SECS
  3.175 12JAN37 2004 CIBC10 MTG PASS CTF A 1     101,248       101,295  
J P MORGAN CHASE COML MTG SECS
  6.260 15MAR33 2001 CIBC1 MTG PASSTHRU CL A3     722,173       772,756  
J P MORGAN CHASE COML MTG SECS
  4.749 15OCT42 2005 LDP4 CTF CL A2     418,508       412,077  
J P MORGAN CHASE COML MTG SECS
  4.302 15JAN38 2004 C1 PASSCTF CL A2     512,013       489,658  
J P MORGAN CHASE COML MTG SECS
  4.790 15OCT42 2005 LDP4 CTF CL A2     418,508       412,077  
JAPANESE YEN
  JAPANESE YEN     48,764       48,482  
JEFFERIES GROUP INC NEW
  7.750 15MAR12 SR NT     200,573       223,365  
JEFFERIES GROUP INC NEW
  5.500 15MAR16 SR NT     340,802       338,764  
JP MORGAN CHASE
  6.750 01FEB11 6.75PCT 01FEB11     766,877       787,123  
JP MORGAN CHASE COML MTG SECS
  4.916 15AUG42 2005 LDP3 COML MTG CTF CL A2     448,045       441,339  
JPMORGAN CHASE + CO
  5.125 15SEP14 GLOBAL SUB HLDG CO NT     679,309       674,127  
KRAFT FOODS INC
  4.000 01OCT08 NT     835,161       812,701  
KRAFT FOODS INC
  5.250 01JUN07 NT     1,936,803       1,869,279  
KRAFT FOODS INC
  4.125 12NOV09 NT     567,843       549,934  
KROGER CO
  6.750 15APR12     406,194       396,726  
KROGER CO
  6.200 15JUN12 SR NT     1,180,701       1,149,410  
KROGER CO
  7.800 15AUG07 SR NT     270,040       264,681  
L 3 COMMUNICATIONS CORP
  6.375 15OCT15 SR SUB NT 144A     58,353       58,644  
L 3 COMMUNICATIONS CORP
  7.625 15JUN12 SR SUB NT     164,364       165,007  
Lasmo USA Inc
  7.500 30JUN06 GTD NT     316,814       298,021  
LB UBS COML MTG TR
  2.720 15MAR27 2003 C1 COML MTG CTF CL A 1     561,887       560,614  
LB UBS COML MTG TR
  4.647 16DEC11 2005 C3 COML MTG PASSTHRU A3     837,026       811,497  
LB UBS COML MTG TR
  4.201 15DEC29 2004 C8 COML MTG CTF CL A2     438,208       423,490  
LB UBS COML MTG TR
  3.992 15OCT29 2004 C7 MTG PASS CTF CL A 2     605,596       580,677  
LEHMAN BROS INC
  6.500 15APR08 NT     662,698       709,201  
LEUCADIA NATL CORP
  7.000 15AUG13 SR NT     233,475       229,114  
LUBRIZOL CORP
  4.625 01OCT09 SR NT     132,578       129,651  
LUBRIZOL CORP
  4.625 01OCT09 SR NT     234,955       230,491  
LUBRIZOL CORP
  6.500 01OCT34 SR DEB     332,931       352,935  
MACH ONE 2004 1 LLC
  3.890 28MAY40 COML MTG PASSTRU CTF CLA1 144A     307,956       301,855  
MACK CALI REALTY LP
  5.050 15APR10 NT     136,928       135,620  
MACK CALI RLTY L P
  5.125 15JAN15 NT     194,765       190,881  
MARSH + MCLENNAN COS INC
  5.750 15SEP15 SR NT     1,163,191       1,185,271  
Masco Corp
  5.875 15JUL12 SR NT     98,669       99,681  
Masco Corp
  4.800 15JUN15 NT     276,529       278,787  

28



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
MASSMUTUAL GLOBAL FDG II MTN
  3.800 15APR09 TRANCHE TR 00016 144A     146,782       142,463  
MAY DEPT STORES CO
  6.650 15JUL24 SR NT     441,418       463,598  
MBNA CORP SR MTN
  4.625 15SEP08 TRANCHE SR 00058     298,389       296,686  
MBNA CORP SR MTN
  6.125 01MAR13 TRANCHE SR 00056     105,610       103,905  
MBNA CR Card Master NT TR
  4.2 15SEP10 2005 1 NT CL A     1,295,410       1,298,027  
MBNA Cr Card Master NT Tr
  2.750 15OCT10 2003 6 NT CL A     258,755       257,544  
MBNA CR CARD MASTER NT TR
  2.750 15OCT10 2003 6 NT CL A     275,530       275,954  
MEDCO HEALTH SOLUTIONS INC
  7.250 15AUG13 SR NT     92,110       91,493  
MEDPARTNERS INC
  7.375 01OCT06 SR NT     1,676,931       1,623,392  
MERRILL LYNCH + CO INC
  4.250 08FEB10 TRANCHE TR 00456     1,465,590       1,429,689  
MERRILL LYNCH + CO INC
  4.790 04AUG10     661,401       653,961  
MERRILL LYNCH MTG INVS INC
  5.250 25AUG36 2005 A8 MTG PASS CTF CL A1C1     1,111,761       1,106,386  
MERRILL LYNCH MTG INVS INC
  4.090 25APR35 2004 SL1 MTG LN ASSET BKD CL A     3,792       3,792  
MERRILL LYNCH MTG TR
  4.166 12AUG39 SER 2004 KEY2 COML MTG CL A2     349,743       336,023  
MERRILL LYNCH MTG TR
  5.244 12NOV37 20056 CKI1 COML MTG PASS CL A6     333,083       337,847  
MERRILL LYNCH MTG TR
  5.223 12NOV37 2005 CKI1 COML MTG CTF A 2     197,043       198,205  
MERRILL LYNCH MTG TR
  4.960 12JUN10 2005 CIP1 MTG PASS CTF CL A2     270,939       267,921  
METLIFE INC
  5.375 15DEC12 SR NT     98,270       100,024  
METLIFE INC
  5.000 15JUN15 SR NT     928,337       912,996  
MGM MIRAGE
  6.000 01OCT09 SR NT     99,455       97,373  
MID ST TR IV
  8.330 01APR30 ASSET BACKED NT     961,535       967,674  
MidAmerican Energy Hldgs Co
  3.500 15MAY08 SR NT     667,404       658,505  
MIDAMERICAN ENERGY HLDGS CO
  5.875 01OCT12 SR NT     142,046       146,677  
MidAmerican Fdg LLC
  6.750 01MAR11 SR SECD NT     505,702       473,421  
MOHEGAN TRIBAL GAMING AUTH
  6.125 15FEB13 SR NT     181,273       178,100  
MORGAN STANLEY ABS CAP I INC
  2.617 25MAY34 2004 HE4 PASSTHRU CTF A 3 144A     66,597       66,540  
MORGAN STANLEY CAP I INC
  4.890 12JUN47 2005 TOP19 COML MTG CL A 4A     1,226,559       1,195,961  
MORGAN STANLEY CAP I INC
  3.940 13SEP45 2004 TP13 CML MTG PASS CL A2     1,076,645       1,048,091  
MORGAN STANLEY CAP I INC
  7.207 15DEC31 COML MTG CTF 1999 RM1 CL E     467,244       490,012  
MORGAN STANLEY CAP I INC
  7.542 15MAR30 COML MTG CTF 1998 HF1 CL E     535,512       512,326  
MORGAN STANLEY GROUP INC
  5.800 01APR07     442,657       415,733  
MORGAN STANLEY GROUP INC
  6.750 15APR11 GLOBAL NT     464,840       485,225  
MOTOROLA INC
  8.000 01NOV11     1,025,661       1,179,800  
MOTOROLA INC
  7.625 15NOV10 NT     29,089       28,320  
NAVISTAR FINANCIAL CORP OWNER
  3.530 15OCT12 SER 2004 B CL A4     956,849       946,416  
NAVISTAR FINL 2002 A OWNER TR
  4.760 15APR09 ASSET BKD NT CL A 4     774,385       774,371  
NEVADA PWR CO
  5.875 15JAN15 GEN + REF MTG NT SER L     63,997       63,201  
New York Life Global Fdg Mtn
  3.875 15JAN09 TRANCHE TR 00002 144A     759,044       742,234  
NEWS AMER HLDGS INC
  7.700 30OCT25 SR DEB     463,432       438,459  
NEWS AMER INC
  4.750 15MAR10 GTD SR NT     333,027       328,125  
NEXTEL COMMUNICATIONS INC
  5.900 15MAR14 SR SERIAL REDEEMABLE NT SER F     141,392       137,898  
NIAGARA MOHAWK PWR CORP
  7.750 01OCT08 SR NT SER G     267,794       261,546  
NISOURCE FIN CORP
  7.875 15NOV10 GTD NT     225,516       217,129  
NISOURCE FIN CORP
  5.250 15SEP17 GTD NT     341,700       333,580  
NISSAN AUTO RECEIVABLES
  3.210 16MAR09 SER 2003 C NT CL A5     92,799       90,923  
NOMURA ASSET ACCEP CORP
  4.855 25FEB35 2005 AP1 MTG PSSTH CTF II A 5     220,461       216,393  
NOMURA ASSET ACCEP CORP
  5.159 25MAR35 2005 WF1 MTG CTF CL II A 5     284,151       277,284  
NOMURA ASSET ACCEP CORP
  4.976 25JUL35 2005 AP2 MTG PASSTHRU CL A5     587,888       569,003  
NORANDA INC
  6.000 15OCT15 NT     202,886       197,883  
NORFOLK SOUTHN CORP
  6.750 15FEB11 SR NT     159,263       153,270  
NORTHERN ROCK PLC MEDIUM TERM
  5.600 30APR49 TRANCHE SR 00021     205,565       206,919  
NORTHROP GRUMMAN CORP
  7.125 15FEB11 NT     166,858       165,499  
NUVEEN INVTS INC
  5.000 15SEP10 SR NT     244,287       241,026  
ONEOK INC NEW
  5.200 15JUN15 NT     406,419       399,315  
OPTEUM MTG ACCEP CORP
  5.640 25NOV35 2005 5 ASSET BKD CTF CL II A1B     548,707       553,074  
Pacific Gas + Elec Co
  4.200 01MAR11 1ST MTG BD     268,759       258,829  
PACIFIC GAS + ELEC CO
  3.600 01MAR09 1ST MTG BD     176,202       169,254  
PARK PLACE ENT
  8.500 15NOV06 NT     118,939       110,606  
PC FINL PARTNERSHIP
  5.000 15NOV14 CTD SR NT     438,606       435,754  
PEARSON DLR FIN PLC
  4.700 01JUN09 GTD SR NT 144A     293,900       289,166  
PEMEX PROJ FDG MASTER TR
  6.125 15AUG08 GTD NT     1,174,977       1,199,340  
PEPCO HLDGS INC
  5.500 15AUG07 NT     51,696       49,289  
PG+E Energy Recovery FDG LLC
  3.870 25JUN11 2005 1 ENERGY RECOVERY BD A2     602,483       591,583  
PG+E Energy Recovery FDG LLC
  4.850 25JUN11 2005 2 ENERGY RECOVERY BD CL A1     269,691       269,583  
PHILLIPS PETE CO
  6.650 15JUL18 DEB     135,049       165,836  
PHOENIX COS INC NEW
  6.675 16FEB08 SR NT     113,808       113,738  
POTASH CORP SASK INC
  4.875 01MAR13 NT     316,662       310,531  
PRAXAIR INC
  6.375 01APR12 NT     414,568       445,264  
PREMCOR REFNG GROUP INC
  6.750 01FEB11 SR NT     1,563,478       1,556,846  
PRIVATE EXPT FDG CORP
  5.340 15MAR06 SECD NT SER M     387,513       358,118  
PROGRESS ENERGY INC
  7.100 01MAR11 SR NT     224,004       216,722  
PROLOGIS TR
  7.050 15JUL06 SR NT     119,753       118,567  
PROVIDIAN GATEWAY OWNER TR
  3.350 15SEP11 SER 2004 D CL A144A     406,824       405,718  
PUBLIC SVC CO COLO
  7.785 01OCT12 1ST COLL TR BD SER NO 8     154,066       171,104  
PUBLIC SVC CO COLO
  4.375 01OCT08 1ST COLL TR BD SER 14     156,588       154,810  
QUEST DIAGNOSTICS INC
  5.125 01NOV10 SR NT     200,492       201,141  
Railcar Leasing LLC
  6.750 15JUL06 SR SECD NT CL A1 144A     231,702       222,237  
RAYTHEON CO
  6.000 15DEC10 DEB     108,862       129,751  
RAYTHEON CO
  6.750 15AUG07 NT     114,223       102,391  
RAYTHEON CO
  5.500 15NOV12 NT     120,398       125,268  
REGENCY CTRS L P
  5.250 01AUG15 GTD NT     132,364       129,861  
RENAISSANCEHOME EQUITY LN TR
  4.190 25NOV34 2004 3 HOME LN EQTY CL AV 2A     1,650,818       1,655,933  
REPUBLIC SVCS INC
  6.086 15MAR35 NT     527,532       524,723  
RESIDENTIAL ASSET MTG PRODS
  4.150 25FEB26 2005 RS1 CL A II 1     251,598       251,660  
RESIDENTIAL ASSET MTG PRODS IN
  4.010 25JUN13 2004 SP1 LN BKD CTF CL AI 1     14,690       14,691  
RESIDENTIAL ASSET SEC MTG PASS
  4.340 25MAY33 SER 2003 KS3 CL A2     82,954       82,985  
RESIDENTIAL ASSET SEC MTG PASS
  4.200 25NOV32 SER 2002 KS7 CTF CL A II     119,256       119,161  
RESIDENTIAL ASSET SEC MTG PASS
  4.187 25OCT21 2004 KS7 MTG CTF CL A I 1     41,063       41,067  

29



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
RESIDENTIAL CAP CORP
  6.375 30JUN10 NT     872,597       886,122  
RESIDENTIAL FDG MTG SECS II
  4.460 25AUG16 HI2 HONE LN BKD NT CL A 2     244,899       240,290  
RESIDENTIAL FDG MTG SECS INC
  1.000 25APR33 2004 HS2 LN BKD NT CL AI1     1,186       1,185  
RESONA BK
  1.000 29SEP49 USD PERPTL SUB BD FIXED 144A     416,146       414,678  
RPM INTL INC FORMERLY RPM INC
  4.450 15OCT09 SR NT     268,073       263,075  
RPM INTL INC FORMERLY RPM INC
  6.250 15DEC13 SR NT     414,975       400,060  
Russell Frank Co
  5.625 15JAN09 GTD NT 144A     1,088,675       1,006,723  
RYDER SYS INC MTN BK ENT
  5.000 15JUN12 TRANCHE TR 00200     302,269       289,158  
SAFEWAY INC
  6.500 01MAR11 NT     77,784       76,098  
SAFEWAY INC
  4.800 16JUL07 NT     98,214       97,560  
SAFEWAY INC
  5.800 15AUG12 NT     234,211       221,590  
SAFEWAY INC
  7.250 01FEB31 DEB     343,935       327,775  
SALOMON BROS MTG SECS VII INC
  1.000 25JAN33 2003 CB1 MTG LN BKD CTF CL AF     411,518       409,036  
SANWA BK LTD N Y BRH
  7.400 15JUN11 SUB NT     111,397       108,199  
SAPPI PAPIER HLDG AG
  6.750 15JUN12 GTD NT 144A     261,252       229,263  
SAXON ASSET SECS TR
  4.297 25AUG32 2002 2 MTG LN AST BK CTF CLAV     9,157       9,159  
SBC Communications Inc
  5.300 15NOV10 Global NT     782,385       786,669  
SBC Communications Inc
  4.125 15SEP09 Global NT     166,538       160,739  
SBC COMMUNICATIONS INC
  4.125 15SEP09 GLOBAL NT     3,014,417       2,975,699  
SBC COMMUNICATIONS INC
  5.625 15JUN16 GLOBAL NT     269,206       271,120  
SIMON PPTY GROUP L P
  6.375 15NOV07 NT     172,057       170,214  
SIMON PPTY GROUP L P
  4.875 15AUG10 NT     420,086       415,492  
SLM CORP
  4.500 26JUL10 TRANCHE TR 00086     346,870       340,550  
SLM CORP
  5.000 01OCT13 TRANCHE 00031     763,439       760,240  
SMALL BUSINESS ADMIN
  7.060 01NOV19 DEB SER 1999 20 K     407,032       428,520  
SMALL BUSINESS ADMIN
  7.190 01DEC19 DEB SER 1999 20 L     743,563       795,165  
SOUNDVIEW HOME LN TR
  5.825 25MAY35 SER 2005 B ASSET BKD CTF CLM3     146,978       146,399  
SOUTHERN CA EDISON CO
  4.650 01APR15 1ST + REF MTG SER 2004 F     209,948       203,798  
SOUTHTRUST CORP
  5.800 15JUN14 SUB NT     117,399       122,409  
SOVEREIGN BANCORP INC
  4.800 01SEP10 SR NT 144A     453,459       456,152  
SPECIALTY UNDERWRITING + RESID
  3.610 25OCT35 2004 BC4 MTG CTF CL A2A     150,750       150,777  
SPRINT CAP CORP
  6.875 15NOV28 NT     419,166       535,338  
SPRINT CAP CORP
  6.375 01MAY09     684,403       706,806  
SPRINT CAP CORP
  6.900 01MAY19 NT     1,588,846       1,618,799  
SPRINT CAP CORP
  8.375 15MAR12 NT     173,046       164,664  
SPRINT CAP CORP
  6.00 15JAN07 GTD NT     342,948       346,302  
SPRINT CAP CORP
  7.625 30JAN07 GTD NT     354,425       378,180  
SPRINT CAP CORP
  8.750 15MAR32 NT     853,489       936,247  
ST GEORGE BK LTD
  5.300 15OCT15 SUB NT 144A     190,668       191,924  
STATION CASINOS INC
  6.000 01APR12 SR NT     214,712       215,029  
STRUCTURED ASSET INVT LN TR
  4.157 25FEB14 2005 1 MTG CTF CL A3 144A     48,449       48,453  
STRUCTURED ASSET INVT LN TR
  4.220 25MAY34 2004 5 MTG CTF CL A2     104,900       104,849  
SUMITOMO MITSUI BKG CORP
  1.000 29JUL49 US PERP SUB BD FIXED 144A     272,913       273,332  
SWAPTION ( 317503G20 )
  OCT06 4.25 Call     8,152       3,620  
SWAPTION ( 317503G38 )
  OCT06 4.3 Call     (8,057 )     (4,303 )
SWAPTION ( 317503HN3 )
  APR06 4.5 Call     3,341       598  
SWAPTION ( 317503HT0 )
  APR06 4.54 Call     (4,380 )     (1,145 )
SWAPTION ( 317503J92 )
  OCT06 4.25 Call     7,015       3,457  
SWAPTION ( 317503JE1 )
  MAY06 4.78 Call     (13,067 )     (12,834 )
SWAPTION ( 317503K33 )
  OCT06 4.56 Call     (23,458 )     (17,595 )
SWAPTION ( 317503L32 )
  OCT06 4.25 Call     10,494       5,292  
SWAPTION ( 317503L40 )
  OCT06 4.32 Call     (10,371 )     (6,560 )
SWAPTION ( 317503L57 )
  OCT06 4.31 Call     (7,202 )     (4,249 )
SWAPTION (317503H26)
  APR06 4.5 Call     (7,422 )     (1,967 )
SWAPTION (317503HP8)
  APR06 4.54 Call     (3,570 )     (805 )
SWAPTION (317503HQ6)
  OCT06 4.5 Call     5,497       2,635  
SWAPTION (317503HR4)
  OCT06 4.54 Call     (5,847 )     (3,359 )
SWAPTION (317503HU7)
  APR06 4.5 Call     4,390       761  
SWAPTION (317503HV5)
  OCT06 4.54 Call     (4,642 )     (2,688 )
SWAPTION (317503HW3)
  OCT06 4.5 Call     4,997       2,560  
SWAPTION (317503JD3)
  MAY06 4.75 Call     12,825       10,793  
SWAPTION (317503K25)
  OCT06 4.5 Call     23,869       15,210  
SWAPTION (317503N97) FUTURES
  AUG06 4.78 Call     (18,446 )     (21,367 )
SWAPTION (317503QC7) FUTURES
  AUG06 4.75 Call     18,850       19,614  
SWAPTION (317503FR6)
  APR06 4.5 Call     7,525       1,357  
SWEDISH KRONA
  SWEDISH KRONA     125       123  
TCI COMMUNICATIONS INC
  7.875 15FEB26 DEB     67,679       84,823  
TECK COMINCO LTD
  7.000 15SEP12 NT     238,600       260,033  
Telecom Italia Cap
  4.000 15JAN10 GTD SR NT     578,105       569,953  
TELECOM ITALIA CAP
  5.250 15NOV13 GTD SR NT SER B     356,724       350,949  
TELECOM ITALIA CAP
  4.000 15JAN10 GTD SR NT     542,361       517,959  
TELECOM ITALIA CAP
  5.250 01OCT15 GTD SR NT     457,629       447,305  
TEMPLE INLAND INC
  6.625 15JAN18 SR NT     223,967       232,185  
Texas Eastn Transmission Corp
  7.300 01DEC10 NT     511,391       480,722  
TEXTRON FINL CORP MTN
  4.125 03MAR08 TRANCHE TR 00632     213,375       212,252  
TEXTRON INC
  6.375 15NOV08 NT     144,557       142,450  
Tiaa Global Mkts Inc
  3.875 22JAN08 NT 144A     997,371       960,147  
TIME WARNER ENTMT CO L P
  7.250 01SEP08 SR DEB     955,493       1,005,084  
TIME WARNER INC
  6.625 15MAY29 DEB     1,973,188       1,956,952  
TIME WARNER INC
  6.875 01MAY12 NT     555,314       516,302  
Time Warner Inc.
  6.625 15MAY29 DEB     769,143       784,687  
TOBACCO SETTLEMENT AUTH IA
  6.500 01JUN23 TAXABLE ASSET BKD SER A     117,582       118,241  
Tricon Global Restaurants Inc
  8.875 15APR11 SR NT     207,228       197,625  
TXU AUSTRALIA HLDGS PTY LTD
  6.150 15NOV13 GTD SR NT 144A     261,750       261,497  
TXU ENERGY CO LLC
  1.000 17JAN06 SR NT     146,978       146,972  
TYCO INTL GROUP S A
  5.800 01AUG06 NT     1,983,622       1,967,905  
U S Bk Natl Assn Cincinnati OH
  4.125 17MAR08 TRANCHE TR 00233     905,439       894,066  
U S DEPT VETERAN AFFAIRS REMIC
  6.000 15APR09 VENDEE MTG TR 2002 3 CL J     493,077       465,095  

30



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
UFJ FIN ARUBA A E C
  6.750 15JUL13 GTD NT     787,535       775,654  
UNION OIL CO CA
  5.050 01OCT12 GTD SR NT     230,275       229,301  
Union Pac Corp
  6.625 01FEB08 NT     737,052       684,266  
UNION PAC CORP
  3.625 01JUN10 NT     131,369       124,776  
UNION PAC CORP
  3.875 15FEB09 NT     390,801       378,679  
UNITED AIRLS PASS THRU TRS
  9.560 19OCT18 PASS THRU CTF SER 1995 A2     747,093       405,964  
UNIVISION COMMUNICATIONS INC
  7.850 15JUL11 SR NT     372,860       382,796  
US DOLLAR
  US DOLLAR     498,788       498,788  
USA WASTE SVCS INC
  7.000 15JUL28     92,039       99,356  
VALERO ENERGY CORP NEW
  6.875 15APR12 NT     338,543       336,319  
Verizon Global Fdg Corp
  7.250 01DEC10 NT     496,102       468,400  
Verizon Global Fdg Corp
  6.875 15JUN12 BD     417,599       420,607  
VERIZON GLOBAL FDG CORP
  4.900 15SEP15 NT     164,145       165,988  
VERIZON GLOBAL FDG CORP
  5.850 15SEP35 NT     306,450       297,441  
Verizon Wireless Cap LLC
  5.375 15DEC06 NT     548,960       517,327  
Vodafone Airtouch PLC
  7.750 15FEB10 NT     756,721       698,843  
WACHOVIA CORP 2ND NEW
  4.875 15FEB14 NT     818,650       800,717  
Walmart Stores Inc
  4.125 01JUL10 NT     430,790       417,783  
Walmart Stores Inc
  4.750 15AUG10 SR NT     205,660       204,437  
WAMU MTG
  4.078 25OCT33 2003 AR10 CTF CL A 6     490,673       478,791  
WAMU MTG PASS THROUGH CTFS
  1.000 25JUL44 2004 AR10 PASSTHRU CTF CL A2C     189,909       190,141  
WAMU MTG PASS THROUGH CTFS
  1.000 25JAN45 2005 AR2 MTG CL 2A 2A2     332,353       332,249  
WAMU MTG PASS THROUGH CTFS
  4.211 25AUG34 2004 AR9 MTG CTF CL A 7     328,536       326,304  
WAMU MTG PASS THROUGH CTFS
  4.682 25APR35 2005 AR4 MTG PASSTHRU CL A 4B     122,195       120,649  
WASHINGTON MUT INC
  4.000 15JAN09 NT     342,940       337,369  
WASHINGTON MUT INC
  4.625 01APR14 SUB NT     868,922       838,487  
WASTE MGMT INC DEL
  7.375 15MAY29 SR NT     32,006       40,079  
WASTE MGMT INC DEL
  7.375 01AUG10 SR NT     110,300       106,637  
WASTE MGMT INC DEL
  6.875 15MAY09 SR NT     547,553       521,721  
WELLPOINT INC
  3.750 14DEC07 NT     659,514       651,501  
WELLPOINT INC
  3.750 14DEC07 NT     84,200       82,396  
WELLPOINT INC
  4.250 15DEC09 NT     415,375       415,169  
Wells Fargo + Co
  4.125 10MAR08 SR NT     666,601       662,160  
Wells Fargo + Co New
  5.125 15FEB07 Global NT     219,743       206,749  
Wells Fargo + Co New
  5.000 15NOV14 SUB NT     87,012       87,234  
WELLS FARGO + CO NEW
  3.500 04APR08 GLOBAL NT     1,176,858       1,142,524  
WELLS FARGO + CO NEW
  6.375 01AUG11 SUB GLOBAL NT     291,570       273,066  
Wells Fargo Finl Auto Owner Tr
  4.280 15AUG08 2005 A ASSET BKD CTF CL A4     984,540       977,675  
WESTVACO CORP
  7.950 15FEB31 DEB     244,063       219,884  
WEYERHAEUSER CO
  6.750 15MAR12 NT     1,865,280       1,820,007  
WEYERHAEUSER CO
  7.375 15MAR32 DEB     277,410       261,435  
WFS FINL 2003 2 OWNER TR
  2.410 20DEC10 2003 2 CL A4 NT     412,020       405,301  
WFS FINL 2004 2 OWNER TR
  3.540 21NOV11 AUTO RECEIVABLE BKD NT CL A 4     1,969,963       1,926,074  
WFS FINL 2004 4 OWNER TR
  3.210 17MAY12 AUTO RECEIVABLE BKD NT CL C     336,939       330,166  
WFS FINL 2005 2 ONER TR
  4.570 17NOV12 AUTO RECEIVABLE BKD NT CL B     171,466       170,220  
WFS FINL OWNER TR
  2.500 17DEC07 AUTO REC BKD CL A 2 SER 2004 4     98,590       98,242  
WPP FIN UK
  5.875 15JUN14 NT     170,979       174,030  
WYETH
  5.500 01FEB14 SR NT     227,932       224,315  
WYETH
  5.500 01FEB14 SR NT     230,099       228,285  
XCEL ENERGY INC
  7.000 01DEC10 SR NT     233,952       226,728  
XTO ENERGY INC
  7.500 15APR12 SR NT     479,840       465,814  
ZIONS BANCORP
  5.500 16NOV15     155,505       157,934  
ZIONS BANCORPORATION
  6.000 15SEP15 SUB NT     410,732       430,073  
 
                 
 
                   
Corporate and Other Obligations
                235,782,419  
 
                 
 
                   
Commingled Investments
                   
PIMCO FDS PAC INV MGMT
  Private Acct Portfolio     225,026       225,602  
PIMCO FDS PAC INVT MGMT SER
  Emerging Mkts Portfolio     6,042,661       6,286,612  
PIMCO FDS PAC INVT MGMT SER
  High Yield Portfolio Instl CL     1,175,823       1,170,129  
PIMCO FDS PAC INVT MGMT SER
  Intl Portfolio Instl CL     2,725,349       2,292,681  
PIMCO FDS PAC INVT MGMT SER
  Invt Grade Corp Port Instl CL     7,481,636       7,025,813  
PIMCO FDS PAC INVT MGMT SER
  Mtg Portfolio Instl CL     14,837,588       14,549,808  
PIMCO FDS PAC INVT MGMT SER
  Real Return BD Portfolio CL     2,573,091       2,354,115  
PIMCO FDS PAC INVT MGMT SER
  Short Term Portfolio Instl CL     15,187,428       15,022,341  
PIMCO FDS PAC INVT MGMT SER
  US Govt Sector Port Instl CL     8,971,221       8,685,478  
 
                   
 
                 
Commingled Investments
                57,612,579  
 
                 
 
Benefit Responsive Interest Rate Wrapper Contracts
                   
Aegon Institutional Markets
  Open Ended Maturity             (29,587,357 )
Bank of America NT & SA
  Open Ended Maturity             (20,143,686 )
 
                 
 
Benefit Responsive Interest Rate Wrapper Contracts
                (49,731,043 )
 
                 
 
Synthetic Guaranteed Investment Contracts
              $ 571,960,001  
 
                 
 
Commingled Investments:
                   
 
                   
ALLIANCE RESOURCE PARTNERS L P UNIT LTD PARTNER INT
  Commingled Investments             7,743  
ANNALY MORTGAGE MANAGEMENT INC
  Commingled Investments             2,735  
BP PRUDHOE BAY RTY TR UNIT BEN INT
  Commingled Investments             6,876  
CROSS TIMBERS ROYALTY TRUST
  Commingled Investments             656  
Daily EAFE Fund
  Commingled Investments             66,909,749  
ENTERPRISE PRODUCTS PPTNS LP
  Commingled Investments             2,401  
FOSTER WHEELER LTD SER B ON SHS WTS EXP 09/24/2007
  Commingled Investments             1,010  
HUGOTON RTY TR TEX UNIT BEN INT
  Commingled Investments             4,151  

31



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
KINDER MORGAN ENERGY PARTNERS L P
  Commingled Investments             20,623  
MAGELLAN MIDSTREAM PARTNERS LP COM UNIT REPSTG LTD PARTNER INT
  Commingled Investments             1,612  
NASDAQ 100 TR UNIT SER 1
  Commingled Investments             126,049  
NEW PLAN EXCEL REALTY TR INC
  Commingled Investments             4,636  
REDBACK NETWORKS INC $5.00 WTS EXP 01/05/2011
  Commingled Investments             79  
REDBACK NETWORKS INC $9.50 WTS EXP 01/02/2011
  Commingled Investments             155  
REDWOOD TRUST INC
  Commingled Investments             9,490  
S & P 500 DEPOSITORY RECEIPT
  Commingled Investments             79,686  
S&P 500 Flagship Fund
  Commingled Investments             171,590,245  
SAN JUAN BASIN RTY TR UNIT BEN INT
  Commingled Investments             7,120  
T C PIPELINES VALUE REFLECTS THE TRADING PRICE ON NATIONAL EXCHANGE OR NASDA
  Commingled Investments             1,943  
US Small Cap Index Futures Fd CMT4
  Commingled Investments             59,850,201  
WEINGARTEN RLTY INVS SH BEN INT
  Commingled Investments             7,561  
 
                 
 
                   
Commingled Investments
              $ 298,634,721  
 
                 
 
                   
Registered Investment Companies:
                   
 
                   
ABN AMRO TALON MID CAP CL N
  Registered Investment Company             11,410  
AEGIS VALUE FUND INC
  Registered Investment Company             67,128  
AIM ENERGY CLASS A
  Registered Investment Company             11,655  
AIM GLOBAL VALUE CLASS A
  Registered Investment Company             988  
AIM LEISURE INVESTOR CLASS
  Registered Investment Company             297  
AIM MULTI SECTOR CLASS C
  Registered Investment Company             26,078  
AIM REAL ESTATE CLASS C
  Registered Investment Company             35,517  
ALLIANZ OCC VALUE INSTITUTIONAL N/C
  Registered Investment Company             5,783  
ALLIANZ RCM BIOTECH FUND CLASS D
  Registered Investment Company             370  
ALLIANZ RCM HEALTHCARE FD CL D
  Registered Investment Company             58,482  
ALLIANZ RCM TECH INSTL CL
  Registered Investment Company             13,163  
ALLIANZ RCM TECHNOLOGY CL D
  Registered Investment Company             1,527  
ALPINE DYNAMIC DIVID FUND
  Registered Investment Company             1,020  
ALPINE US REAL ESTATE EQUITY Y
  Registered Investment Company             7,955  
AMERICAN BEACON SMALL CAP VAL INSTL
  Registered Investment Company             29,479  
AMERICAN CAPITAL INCOME BUILDER CL F
  Registered Investment Company             26,300  
AMERICAN CAPITAL WORLD GROWTH & INC F
  Registered Investment Company             12,001  
AMERICAN CENTURY EQUITY INCOME
  Registered Investment Company             26,715  
AMERICAN EUROPACIFIC GROWTH CLASS F
  Registered Investment Company             49,372  
AMERICAN FUNDAMENTAL INVESTORS CL F
  Registered Investment Company             12,459  
AMERICAN FUNDAMENTAL INVESTORS CLASS A
  Registered Investment Company             19,281  
AMERICAN GROWTH FUND OF AMERICA CLASS A
  Registered Investment Company             10,727  
AMERICAN GROWTH FUND OF AMERICA CLASS F
  Registered Investment Company             23,592  
AMERICAN HIGH-INCOME CLASS F
  Registered Investment Company             32,178  
AMERICAN INCOME FUND OF AMERICA CLASS F
  Registered Investment Company             4,185  
AMERISTOCK MUTUAL FUND
  Registered Investment Company             53,246  
ARIEL APPRECIATION
  Registered Investment Company             240,549  
ARIEL FUND
  Registered Investment Company             128,530  
ARTISAN INTERNAT’L
  Registered Investment Company             76,405  
ARTISAN MID CAP
  Registered Investment Company             31,213  
ARTISAN MID CAP VALUE
  Registered Investment Company             9,323  
ATLANTIC WHITEHALL GROWTH N/C
  Registered Investment Company             2,396  
BARON GROWTH
  Registered Investment Company             443  
BARON PARTNERS FUND
  Registered Investment Company             13,597  
BBH INFLATION INDEXED SECURITIES N
  Registered Investment Company             6,013  
BERKSHIRE FOCUS FUND
  Registered Investment Company             39,218  
BJURMAN MICRO CAP GROWTH
  Registered Investment Company             4,656  
BLACK OAK EMERGING TECHNOLOGY FUND
  Registered Investment Company             165  
BLACK ROCK ALL CAP GLOBAL RES PORT CL A
  Registered Investment Company             5,812  
BRANDYWINE BLUE
  Registered Investment Company             115,051  
BRAZOS MICRO CAP FUND CL Y
  Registered Investment Company             559  
BRIDGEWAY AGGRESSIVE INVESTOR 1
  Registered Investment Company             72,493  
BRIDGEWAY AGGRESSIVE INVESTOR 2
  Registered Investment Company             121,599  
BRIDGEWAY SMALL CAP GROWTH CL N
  Registered Investment Company             27,220  
BROWN CAPITAL MGMT SMALL COMPANY INST.
  Registered Investment Company             2,725  
BUFFALO SMALL CAP GROWTH
  Registered Investment Company             62,098  
CALAMOS GROWTH & INCOME CL C
  Registered Investment Company             49,416  
CALAMOS GROWTH CLASS A
  Registered Investment Company             66,870  
CALAMOS GROWTH FUND CLASS C
  Registered Investment Company             42,362  
CALVERT SOCIAL INVST BALANCED CLASS A
  Registered Investment Company             53,254  
CAUSEWAY INTERNATNAL VALUE INVESTOR
  Registered Investment Company             27,314  
CHESAPEAKE CORE GROWTH FUND
  Registered Investment Company             15,036  
CLIPPER
  Registered Investment Company             139,525  
COHEN & STEERS REALTY SHARES
  Registered Investment Company             31,561  
COLUMBIA ACORN CLASS Z
  Registered Investment Company             4,638  
CRM MID CAP VALUE INVESTOR SHARES
  Registered Investment Company             1,714  
CRM MID-CAP VALUE FD-INSTITUTIONAL
  Registered Investment Company             6,229  
DELAWARE EMERGING MARKETS CLASS A
  Registered Investment Company             13,339  
DODGE & COX BALANCE
  Registered Investment Company             128,200  
DODGE & COX INCOME
  Registered Investment Company             122,022  
DODGE & COX INTERNATL STOCK FUND
  Registered Investment Company             146,652  
DODGE & COX STOCK
  Registered Investment Company             234,901  
DREYFUS MIDCAP VALUE FUND
  Registered Investment Company             11,742  
DREYFUS PREMIER EMERGING MARKTS CL A
  Registered Investment Company             21,905  
DREYFUS PREMIER ENTERPRISE CL B
  Registered Investment Company             6,041  
DREYFUS PREMIER LTD TERM INCOME CL R
  Registered Investment Company             3,290  
DREYFUS PREMIER S&P STARS OPP FD CL R
  Registered Investment Company             24,957  
DRIEHAUS INTERNATL DISCOVERY
  Registered Investment Company             16,812  
EATON VANCE WORLDWIDE HEALTH SCIENCES CLASS A
  Registered Investment Company             1,550  
EXCELSIOR REAL ESTATE
  Registered Investment Company             42,764  

32



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
EXCELSIOR VALUE 3AND RESTRUCTURING
  Registered Investment Company             8,415  
EXETER PRO-BLEND MAXIMUM TERM SERIES
  Registered Investment Company             717  
FAIRHOLME FUND
  Registered Investment Company             42,052  
FAM VALUE
  Registered Investment Company             55,195  
FBR SMALL CAP CLASS
  Registered Investment Company             10,388  
FBR SMALL CAP FINANCIAL CLASS
  Registered Investment Company             13,939  
FIDELITY ADVISOR DIVERSIFIED INT’L I
  Registered Investment Company             13,325  
FIDELITY CANADA
  Registered Investment Company             1,064  
FIDELITY CAPITAL APPRECIATION
  Registered Investment Company             13,238  
FIDELITY CONTRAFUND
  Registered Investment Company             304,243  
FIDELITY CONVERTIBLE SECURITIES
  Registered Investment Company             18,504  
FIDELITY DIVERSIFIED INTERNATIONAL
  Registered Investment Company             101,484  
FIDELITY DIVIDEND GROWTH
  Registered Investment Company             276,743  
FIDELITY EXPORT & MULTINATIONAL
  Registered Investment Company             23,446  
FIDELITY INTERN’TL SMALL CAP
  Registered Investment Company             21,270  
FIDELITY INT’L DISCOVERY
  Registered Investment Company             6,789  
FIDELITY JAPAN
  Registered Investment Company             7,936  
FIDELITY JAPAN SMALLER COMPANIES
  Registered Investment Company             1,821  
FIDELITY LARGE CAP STOCK
  Registered Investment Company             8,502  
FIDELITY LATIN AMERICA
  Registered Investment Company             34,860  
FIDELITY LEVERAGED COMPANY STOCK
  Registered Investment Company             30,501  
FIDELITY LOW PRICED STOCK
  Registered Investment Company             61,276  
FIDELITY MID CAP STOCK
  Registered Investment Company             36,518  
FIDELITY NEW MARKETS INCOME
  Registered Investment Company             5,092  
FIDELITY REAL ESTATE INVESTMENT
  Registered Investment Company             57,609  
FIDELITY SELECT ENERGY
  Registered Investment Company             4,361  
FIDELITY SELECT GOLD
  Registered Investment Company             7,391  
FIDELITY SELECT MEDICAL DELIVERY
  Registered Investment Company             44,652  
FIDELITY SELECT MEDICAL EQUIP&SYSTEM
  Registered Investment Company             19,269  
FIDELITY SELECT NATURAL GAS
  Registered Investment Company             45,824  
FIDELITY SELECT WIRELESS PORTFOLIOS
  Registered Investment Company             1,357  
FIDELITY SHORT TERM BOND
  Registered Investment Company             8,656  
FIDELITY SMALL CAP GROWTH
  Registered Investment Company             2,060  
FIDELITY SMALL CAP STOCK
  Registered Investment Company             12,198  
FIDELITY STRATEGIC DIVIDEND & INCOME
  Registered Investment Company             24,698  
FIDELITY STRATEGIC INCOME
  Registered Investment Company             43,015  
FIDELITY US BOND INDEX
  Registered Investment Company             16,352  
FIDELITY VALUE
  Registered Investment Company             13,457  
FIDELITY WORLDWIDE
  Registered Investment Company             7,595  
FIRST EAGLE GLOBAL CLASS C
  Registered Investment Company             5,731  
FIRSTHAND GLOBAL TECHNOLOGY
  Registered Investment Company             217  
FIRSTHAND TECHNOLOGY VALUE
  Registered Investment Company             418  
FORUM POLARIS GLOBAL VALUE
  Registered Investment Company             5,082  
FRANKLIN INCOME CLASS C
  Registered Investment Company             37,932  
FRANKLIN NATURAL RESOURCES A
  Registered Investment Company             3,742  
FRANKLIN REAL ESTATE SECURITIES CLASS C
  Registered Investment Company             50,594  
FRANKLIN UTILITIES CLASS A
  Registered Investment Company             963  
FUNDX STOCK UPGRADE FUND
  Registered Investment Company             1,041  
GABELLI EQUITY INCOME FUND
  Registered Investment Company             10,609  
GABELLI GROWTH SHARES BEN INT
  Registered Investment Company             7,444  
GABELLI UTILITIES FUND CLASS C
  Registered Investment Company             4,910  
GARTMORE MICRO CAP EQUITY CLASS A
  Registered Investment Company             5,699  
GOLDMAN SACHS ASSET ALLOC GROWTH STRAT C
  Registered Investment Company             12,201  
GUINNESS ATKINSON CHINA & HONG KONG
  Registered Investment Company             2,112  
GUINNESS ATKINSON GLOBAL ENERGY
  Registered Investment Company             3,792  
HANCOCK HORIZON BURKENROAD FUND CL D
  Registered Investment Company             72,765  
HARBOR INTERNATIONAL
  Registered Investment Company             41,004  
HARRIS INSIGHT SMALL CAP VALUE CLASS N
  Registered Investment Company             3,524  
HEARTLAND VALUE
  Registered Investment Company             16,789  
HENNESSY CORNERSTONE GROWTH
  Registered Investment Company             15,876  
HENNESSY CORNERSTONE GROWTH FD SERIES II
  Registered Investment Company             6,959  
HUSSMAN STRATEGIC GROWTH
  Registered Investment Company             13,276  
ICAP INTERNATIONAL FUND
  Registered Investment Company             1,068  
ICON ENERGY
  Registered Investment Company             32,147  
ICON HEALTHCARE
  Registered Investment Company             9,978  
ISHARES TR NASDAQ BIOTECHNOLOGY INDEX FD
  Registered Investment Company             3,476  
ISHARES TR S&P 500 INDEX FD
  Registered Investment Company             24,934  
IVY GLOBAL NATURAL RESOURCES CLASS C
  Registered Investment Company             5,735  
JANUS CORE EQUITY FUND
  Registered Investment Company             74,722  
JANUS FLEXIBLE BOND
  Registered Investment Company             70,946  
JANUS GROWTH AND INCOME
  Registered Investment Company             11,172  
JANUS INTECH RISK MANAGED STOCK FUND
  Registered Investment Company             21,720  
JANUS MERCURY
  Registered Investment Company             2,174  
JANUS MID CAP VALUE INVST SHS
  Registered Investment Company             87,462  
JENNISON UTILITY CL C
  Registered Investment Company             489  
JP MORGAN MID CAP VALUE INSTL
  Registered Investment Company             26,125  
JULIUS BAER INT’L EQUITY A
  Registered Investment Company             43,732  
KINETICS SMALL CAP OPPORTUNITIES
  Registered Investment Company             4,562  
LONGLEAF PARTNERS
  Registered Investment Company             35,384  
LOOMIS SAYLES BOND INSTL
  Registered Investment Company             14,998  
LOOMIS SAYLES GLOBAL BOND RETAIL
  Registered Investment Company             4,419  
LORD ABBETT AFFILIATED CLASS C
  Registered Investment Company             27,167  
LORD ABBETT RESEARCH SMALL CAP CLASS C
  Registered Investment Company             42,389  
MANAGERS FREMONT MICRO-CAP FUND N/C
  Registered Investment Company             57,147  
MANAGERS INTERMEDIAT DURATION GOVERNMENT
  Registered Investment Company             23,095  
MARSICO FOCUS
  Registered Investment Company             31,313  
MARSICO GROWTH FUND
  Registered Investment Company             84,855  
MASTERS SELECT EQUITY
  Registered Investment Company             60,902  

33



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
MATRIX ADVISORS VALUE
  Registered Investment Company             5,330  
MATTHEWS CHINA FUND
  Registered Investment Company             26  
MATTHEWS PACIFIC TIGER FUND
  Registered Investment Company             112,217  
MERIDIAN GROWTH FUND
  Registered Investment Company             166,944  
MERIDIAN VALUE FUND
  Registered Investment Company             9,797  
MFS HIGH YIELD OPPORTUNITIES CL C
  Registered Investment Company             39,781  
MFS INTERNATIONAL NEW DISCOVERY CL C
  Registered Investment Company             28,181  
MFS MID CAP VALUE CLASS C
  Registered Investment Company             22,229  
MFS RESEARCH BOND CL C
  Registered Investment Company             46,416  
MFS TOTAL RETURN CLASS C
  Registered Investment Company             31,301  
NEEDHAM GROWTH FUND
  Registered Investment Company             1,925  
NEUBERGER BERMAN GENESIS TRUST CLASS
  Registered Investment Company             37,951  
NUVEEN QUALITY PFD INCOME FD 2
  Registered Investment Company             143,360  
OAKMARK EQUITY & INCOME FD
  Registered Investment Company             217,460  
OAKMARK FUND
  Registered Investment Company             354,777  
OAKMARK INTERNAT’L
  Registered Investment Company             51,317  
OAKMARK INTERNAT’L SMALL CAP
  Registered Investment Company             5,653  
OAKMARK SELECT
  Registered Investment Company             76,323  
OIL & GAS ULTRA SECT PRO FDS -INVESTOR
  Registered Investment Company             865  
OLD MUTUAL MID CAP FUND CL Z N/C
  Registered Investment Company             4,335  
OPPENHEIMER INT’L BOND CLASS C
  Registered Investment Company             39,861  
OPPENHEIMER MIDCAP CLASS C
  Registered Investment Company             22,662  
OPPENHEIMER REAL ASSET CLASS A
  Registered Investment Company             2,223  
OPPENHEIMER SMALL & MID CAP VALUE CL C
  Registered Investment Company             22,327  
PIMCO ALL ASSET INST CLASS
  Registered Investment Company             58,605  
PIMCO COMMODITY REAL RETURN INST
  Registered Investment Company             48,219  
PIMCO FOREIGN BOND F D (UNHEDGED) INST CL
  Registered Investment Company             18,795  
PIMCO REAL RETURN CLASS C
  Registered Investment Company             51,410  
PIMCO SHORT TERM INSTITUTIONAL
  Registered Investment Company             38,134  
PIN OAK AGGRESSIVE STOCK
  Registered Investment Company             464  
POTOMAC US SHORT
  Registered Investment Company             5,822  
PRO FUNDS ULTRA SHRT SMALL CAP- SERV SHS
  Registered Investment Company             1,186  
PRUDENT GLOBAL INC FUNDS
  Registered Investment Company             45,815  
RED OAK TECHNOLOGY SELECT
  Registered Investment Company             296  
ROYCE LOW PRICED STOCK FD-SERVICE CL
  Registered Investment Company             163,149  
ROYCE MICROCAP INVESTMENT CLASS
  Registered Investment Company             126,434  
ROYCE OPPORTUNITY FUND INVEST CLASS
  Registered Investment Company             97,494  
ROYCE PENNSYLVANIA MUTUAL INVST CLASS
  Registered Investment Company             119,882  
ROYCE PREMIER FUND INVESTMENT CL
  Registered Investment Company             32,136  
ROYCE SPECIAL EQUITY INVESTMENT CL
  Registered Investment Company             5,232  
ROYCE TOTAL RETURN FD INVESTMENT CL
  Registered Investment Company             107,866  
ROYCE VALUE FUND SERVICE CL
  Registered Investment Company             9,767  
RS GLOBAL NATURAL RESOURCES
  Registered Investment Company             7,428  
RS PARTNERS
  Registered Investment Company             4,983  
RS VALUE FUND
  Registered Investment Company             3,062  
RYDEX BIOTECHNOLOGY INV CLASS
  Registered Investment Company             387  
RYDEX UTILITIES INVESTOR CLASS
  Registered Investment Company             4,587  
SELECTED AMERICAN SHARES CL S
  Registered Investment Company             59,325  
SKYLINE SPECIAL EQUITIES
  Registered Investment Company             6,058  
SOUND SHORE FD INC
  Registered Investment Company             24,454  
SPARTAN 500 INDEX INVESTOR CLASS
  Registered Investment Company             9,002  
SPRTN TOTAL MKT INDX INVESTOR CLASS
  Registered Investment Company             32,519  
*               SSGA AGGRESSIVE EQUITY
  Registered Investment Company             7,633  
*               SSGA EMERGING MARKETS
  Registered Investment Company             45,301  
*               SSGA LIFE SOLUTIONS GROWTH FUND
  Registered Investment Company             5,196  
*               SSGA LIFE SOLUTIONS INCOME & GROWTH FD
  Registered Investment Company             819  
*               SSGA SMALL CAP EQUITY
  Registered Investment Company             30  
*               SSGA TUCKERMAN ACTIVE REIT
  Registered Investment Company             7,028  
STRATEGIC PARTNERS MODERATE ALLOCAT C
  Registered Investment Company             11,844  
T ROWE PRICE CAP APPRECIATION
  Registered Investment Company             73,999  
T ROWE PRICE CORPORATE INCOME
  Registered Investment Company             2,004  
T ROWE PRICE EMERG EURO & MEDITERRANEAN
  Registered Investment Company             104,613  
T ROWE PRICE EQUITY INCOME
  Registered Investment Company             132,681  
T ROWE PRICE HEALTH SCIENCES
  Registered Investment Company             91,965  
T ROWE PRICE HIGH YIELD BOND
  Registered Investment Company             6,514  
T ROWE PRICE INTERNATIONAL BOND
  Registered Investment Company             3  
T ROWE PRICE INTL DISCOVERY FUND
  Registered Investment Company             3,042  
T ROWE PRICE INT’L EMERGING MARKET BOND
  Registered Investment Company             3,737  
T ROWE PRICE INT’L JAPAN
  Registered Investment Company             2,696  
T ROWE PRICE LATIN AMERICA FUND
  Registered Investment Company             40,154  
T ROWE PRICE MEDIA & TELECOMMUNICATIONS
  Registered Investment Company             24,785  
T ROWE PRICE MID CAP GROWTH
  Registered Investment Company             1,354  
T ROWE PRICE MID CAP VALUE
  Registered Investment Company             198,678  
T ROWE PRICE NEW ERA
  Registered Investment Company             17,996  
T ROWE PRICE NEW HORIZONS FD INC
  Registered Investment Company             1,541  
T ROWE PRICE REAL ESTATE FUND
  Registered Investment Company             3,159  
T ROWE PRICE SMALL CAP STOCK
  Registered Investment Company             3,963  
TCW CONV SECS CL I
  Registered Investment Company             6,817  
TEMPLETON DEVELOPING MARKETS ADVISOR CL
  Registered Investment Company             31,105  
THIRD AVENUE INTL VALUE
  Registered Investment Company             23,067  
THIRD AVENUE REAL ESTATE VALUE
  Registered Investment Company             82,334  
THIRD AVENUE SMALL CAP VALUE
  Registered Investment Company             23,981  
THIRD AVENUE VALUE
  Registered Investment Company             74,474  
THOMPSON PLUMB GROWTH FUND
  Registered Investment Company             46,441  
TIMOTHY PLAN AGG GROWTH CL C
  Registered Investment Company             867  
TIMOTHY PLAN CONSERV GROWTH CL C
  Registered Investment Company             9,812  
TIMOTHY PLAN FIXED INCOME CLASS C
  Registered Investment Company             3,194  
TIMOTHY PLAN STRATEGIC GROWTH CL C
  Registered Investment Company             1,901  

34



 

Baxter International Inc. and Subsidiaries
Incentive Investment Plan
   
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2005
Schedule I
                     
TOCQUEVILLE GOLD FUND
  Registered Investment Company             54,911  
TRANSAMERICA PREMIER BALANCED
  Registered Investment Company             327  
TWEEDY BROWNE GLOBAL VALUE FUND
  Registered Investment Company             164,489  
ULTRA BEAR PRO FUND INVESTORS SHARES
  Registered Investment Company             12,322  
ULTRA JAPAN PRO FUND INVESTORS SHS
  Registered Investment Company             50,956  
UMB SCOUT SMALL CAP
  Registered Investment Company             5,414  
US GLOBAL REGION EAST EUROPEAN
  Registered Investment Company             85,601  
US GLOBAL RESOURCES
  Registered Investment Company             29,048  
UTILITIES ULTRA SECTOR PRO FUND INV
  Registered Investment Company             756  
VALUE LINE EMERGING OPPORTUNITY
  Registered Investment Company             39,609  
VALUE LINE LEVERAGED GROWTH INC
  Registered Investment Company             47,619  
VANGUARD BOND INDEX TOTAL MARKET
  Registered Investment Company             67,574  
VANGUARD DIVIDEND GROWTH
  Registered Investment Company             3,467  
VANGUARD ENERGY
  Registered Investment Company             145,990  
VANGUARD EUROPEAN STOCK INDEX
  Registered Investment Company             3,730  
VANGUARD EXPLORER
  Registered Investment Company             11,228  
VANGUARD FIXED INC HIGH YIELD CORP
  Registered Investment Company             4,004  
VANGUARD GLOBAL EQUITY
  Registered Investment Company             35,066  
VANGUARD GNMA
  Registered Investment Company             23,426  
VANGUARD INDEX TRUST S&P 500 PORT
  Registered Investment Company             268,379  
VANGUARD INDEX TRUST SMALL CAP GROWTH
  Registered Investment Company             51,549  
VANGUARD INFLATION PROTECTED SECS
  Registered Investment Company             54,253  
VANGUARD INTERMED TERM TAX EXEMPT
  Registered Investment Company             1,001  
VANGUARD INTER-TERM BOND INDEX PORT
  Registered Investment Company             49,447  
VANGUARD LIFE STRAT MODERATE GROWTH
  Registered Investment Company             65,751  
VANGUARD MID CAP INDEX
  Registered Investment Company             149,293  
VANGUARD MID-CAP            GROWTH FUND
  Registered Investment Company             5,117  
VANGUARD PACIFIC STOCK INDEX
  Registered Investment Company             64,125  
VANGUARD PRECIOUS METALS & MINING FUND
  Registered Investment Company             50,870  
VANGUARD REIT INDEX FUND
  Registered Investment Company             101,710  
VANGUARD SELECTED VALUE FUND
  Registered Investment Company             5,726  
VANGUARD SHORT TERM BOND INDEX
  Registered Investment Company             85,847  
VANGUARD SHORT TERM INVMT GRADE INVESTOR
  Registered Investment Company             18,628  
VANGUARD SMALL CAP STOCK INDEX TRUST
  Registered Investment Company             48,327  
VANGUARD STRATEGIC EQUITY
  Registered Investment Company             53,009  
VANGUARD TARGET RET 2035 FD INVESTOR CL
  Registered Investment Company             99,356  
VANGUARD TOTAL INTL STOCK INDEX FUND
  Registered Investment Company             12,417  
VANGUARD TOTAL STOCK MARKET
  Registered Investment Company             42,793  
VANGUARD US VALUE
  Registered Investment Company             12,355  
VANGUARD WELLINGTON FUND
  Registered Investment Company             132,498  
VANGUARD WINDSOR II
  Registered Investment Company             108,288  
VANGUARD WINDSOR II ADMIRAL
  Registered Investment Company             99,409  
VANGUARD/WELLESLEY INCOME
  Registered Investment Company             121,561  
VICE FUND
  Registered Investment Company             11,806  
WASATCH CORE GROWTH
  Registered Investment Company             16,816  
WASATCH HERITAGE GROWTH FUND
  Registered Investment Company             7,339  
WASATCH SMALL CAP GROWTH
  Registered Investment Company             15,476  
WASATCH SMALL CAP VALUE
  Registered Investment Company             46,792  
WEITZ PARTNERS VALUE
  Registered Investment Company             35,102  
WEITZ VALUE
  Registered Investment Company             51,995  
WELLS FARGO ASIA PACIFIC FD-INVESTOR
  Registered Investment Company             19,779  
WELLS FARGO C&B MID CAP VALUE FD CL D
  Registered Investment Company             7,038  
WESTWOOD EQUITY RETAIL CLASS
  Registered Investment Company             87,100  
WHITE OAK SELECT GROWTH FUND
  Registered Investment Company             1,001  
WILLIAM BLAIR INT’L GROWTH CLASS N
  Registered Investment Company             8,806  
YACKTMAN FUND
  Registered Investment Company             3,115  
 
                 
 
                   
Registered Investment Companies
              $ 11,663,581  
 
                 
 
                   
*               Participant Loans
  Interest rates range from 5.00% to 10.00%           $ 29,575,488  
 
                   
 
                 
Collateral Held on Loaned Securities
              $ 126,971,898  
 
                 
 
                   
Total Investments
              $ 1,606,210,984  
 
                 
*   Party-in-interest
 
**   Investments underlying the Stable Income Fund, General Equity Fund and Composite Fund are considered non-participant-directed for purposes of reporting cost information within this schedule. All other investments are considered to be participant-directed, for which cost information is not required to be reported.

35



 

Baxter-International Inc. and Subsidiaries

Incentive Investment Plan

Schedule H, Line 4j — Schedule of Reportable Transactions
 
Year Ended December 31, 2005 Schedule II

                                                 
Current Value
of Asset on
Purchase Selling Cost of Transaction Net Gain
Identity of Party Involved Description of Asset Price Price Asset Date or (Loss)







State Street Bank and Trust Company
Short-Term Investment Fund
    Interest-bearing cash     $ 419,427,072     $ 420,402,365     $ 420,402,365     $ 839,829,437     $  

36



 

SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.
         
  BAXTER INTERNATIONAL INC. AND SUBSIDIARIES
INCENTIVE INVESTMENT PLAN
 
Date: June 28, 2006  By:   /s/ Robert M. Davis    
    Robert M. Davis   
    Corporate Vice President and Chief Financial Officer   
 

37


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘11-K’ Filing    Date    Other Filings
12/31/0610-K,  11-K,  4
Filed on:6/29/0611-K,  8-K
6/28/06
6/26/063
For Period End:12/31/0510-K,  11-K
12/13/05
12/31/0410-K,  11-K,  4
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