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Previous: BANCROFT CONVERTIBLE FUND INC, N-30D, 2000-07-05 |
Next: BAXTER INTERNATIONAL INC, 11-K, EX-23, 2000-07-05 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
X ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE
-------
SECURITIES EXCHANGE ACT OF 1934
For the year ended December 31, 1999
OR
_______ TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____ to ____
Commission file number 1-4448
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
Baxter International Inc.
One Baxter Parkway
Deerfield, IL 60015
(847) 948-2000
<PAGE>
BAXTER INTERNATIONAL INC.
AND SUBSIDIARIES
INCENTIVE INVESTMENT PLAN
-------------------------
FINANCIAL STATEMENTS AND
ADDITIONAL INFORMATION
----------------------
DECEMBER 31, 1999 AND 1998
--------------------------
<PAGE>
BAXTER INTERNATIONAL INC. AND SUBSIDIARIES
INCENTIVE INVESTMENT PLAN
-------------------------
INDEX TO FINANCIAL STATEMENTS
AND ADDITIONAL INFORMATION
--------------------------
Page
----
Financial Statements:
Report of Independent Accountants 1
Statement of Net Assets Available for
Benefits as of December 31, 1999
and 1998 2
Statement of Changes in Net Assets Available
for Benefits for the years ended
December 31, 1999 and 1998 3
Notes to Financial Statements
4-8
Additional Information:*
Schedule I: Schedule of Assets Held for Investment Purposes as of December
31, 1999
*Other Schedules required by Section 2520.103-10 of the Department of Labor
Rules and Regulations for Reporting and Disclosure under ERISA have been omitted
because they are not applicable.
<PAGE>
Report of Independent Accountants
---------------------------------
June 26, 2000
To the Administrative Committee of
the Baxter International Inc. and
Subsidiaries Incentive Investment Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of the Baxter International Inc. and Subsidiaries Incentive Investment Plan (the
"Plan") at December 31, 1999 and 1998, 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. These financial statements are the
responsibility of the Plan's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with auditing standards generally
accepted in the United States, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of Assets Held
for Investment Purposes is presented for the purpose of additional analysis and
is not a required part of the basic financial statements but is supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This supplemental schedule is the responsibility of the Plan"s management.
The supplemental schedule has been subjected to the auditing procedures applied
in the audits of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
PricewaterhouseCoopers LLP.
Chicago, Illinois
<PAGE>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
-------------------------
Statement of Net Assets Available for Benefits
----------------------------------------------
<TABLE>
<CAPTION>
December 31,
1999 1998
---- ----
<S> <C> <C>
Assets
Investments, at fair value:
Cash and cash equivalents $ 34,097,133 $ 66,850,176
Common stock 550,543,654 540,174,187
Fixed income securities 85,889,383 88,132,272
Commingled fund 246,594,868 173,971,651
Participant loans 28,571,785 27,912,005
--------------- ---------------
945,696,823 897,040,291
Group annuity contracts, at contract value 444,619,629 409,911,438
--------------- ---------------
1,390,316,452 1,306,951,729
Receivables:
Dividend and interest 5,290,810 2,477,193
Due from brokers for
securities sold 1,904,030 3,758,774
--------------- ---------------
1,397,511,292 1,313,187,696
Liabilities
Accounts payable 2,512,881 2,738,436
Due to brokers for
securities purchased 265,767 1,594,886
--------------- ---------------
Net assets available for benefits $ 1,394,732,644 $ 1,308,854,374
=============== ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan
-------------------------
Statement of Changes in Net Assets Available for Benefits
---------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
1999 1998
---- ----
<S> <C> <C>
Additions to net assets attributed to:
-------------------------------------
Investment income:
Interest $ 39,135,250 $ 37,847,201
Dividends 8,453,546 8,528,801
Net appreciation
in fair value of assets 61,805,693 134,904,847
--------------- ---------------
109,394,489 181,280,849
-------------- ---------------
Contributions:
Employer contributions 17,356,990 16,441,856
Employee contributions 44,560,615 40,518,511
--------------- ---------------
61,917,605 56,960,367
--------------- ---------------
Transfers from other plans 9,325,367 21,307,042
--------------- ---------------
Total additions 180,637,461 259,548,258
--------------- ---------------
Deductions from net assets attributed to:
----------------------------------------
Benefits paid 89,020,934 80,132,722
Plan expenses 5,738,257 5,581,417
--------------- ---------------
Total deductions 94,759,191 85,714,139
--------------- ---------------
Net increase 85,878,270 173,834,119
Net assets available for benefits:
Beginning of year 1,308,854,374 1,135,020,255
--------------- ---------------
End of year $ 1,394,732,644 $ 1,308,854,374
=============== ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
BAXTER INTERNATIONAL INC. AND SUBSIDIARIES
INCENTIVE INVESTMENT PLAN
-------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTE 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 12% of their eligible annual compensation within certain limitations. The
Plan sponsor, Baxter International Inc. ("Baxter"), matches participant
contributions up to a maximum of 3% of the employees' compensation. Participant
contributions are fully vested at all times. Vesting in the Plan sponsor
matching contributions is based on years of continuous service. A participant
vests in annual increments of 20% and, therefore, is 100 percent vested after
five years of credited service. Participants may borrow up to the lessor 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.
Upon enrollment in the Plan, a participant may direct contributions in any of
six investment options: Stable Income, Baxter Common Stock, Composite, General
Equity, S&P 500 Equity Index, and the International EAFE Equity Index. In
addition, certain participants may maintain shares received (the "Allegiance
Shares") in connection with the Baxter"s 1997 spin-off of Allegiance Corporation
("Allegiance"). The Allegiance Shares were subsequently converted to common
shares of Cardinal Health Inc. ("Cardinal") upon Cardinal's acquisition of
Allegiance in 1999. The Cardinal shares are maintained in the Cardinal Common
Stock Fund. Further, on March 31, 2000, Baxter spun-off its cardiovascular
division in the form of a tax-free distribution to shareholders. As a result,
the Plan received shares in the new company, Edwards Life Sciences Corporation,
which were placed into the Edwards Life Sciences Common Stock Fund. Participants
are not able to make contributions to the Cardinal Common Stock Fund or the
Edwards Life Sciences Common Stock Fund.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------
The accompanying financial statements of the Plan have been prepared on the
accrual basis of accounting. Prior year presentation by fund has been
consolidated to reflect changes in reporting requirements under current year
guidance. Accordingly, investment income is recognized when earned and expenses
are recognized when incurred. Plan investments, other than group annuity
contracts, are stated at fair value determined as follows:
-4-
<PAGE>
U.S. government and government Value based on the last reported
agency issues sale price from a national
security exchange on the
valuation date
Corporate and other bonds Value based on the last reported
sale price from a national
security exchange on the
valuation date
Common stock:
Traded on national exchanges Value based on composite
pricing of all national closing
sales prices on the valuation
date
Traded on over-the-counter Value based on last reported
market sale price defaulting to bid
quotations
Commingled investments Value based on closing prices
of the underlying securities on
the valuation date
Group annuity contracts Value based on contract value
Short term investments Value based on cost which
approximates fair value
Loan fund Participant note receivables
are valued at cost which
approximates fair value
Plan investment return includes dividend and interest income, gains and losses
on sales of investments and unrealized appreciation or depreciation of
investments. The financial statements reflect the net appreciation in the fair
value of the Plan's investments. This net appreciation consists of realized
gains and losses calculated as the difference between proceeds from a sales
transaction and cost determined on a moving average basis, and unrealized gains
and losses calculated as the change in the fair value between beginning of the
year (or purchase date if later) and the end of the year.
Amounts funded to insurance companies under various contracts are maintained in
deposit accounts which are credited monthly with earnings on the underlying
investments and charged for Plan withdrawals and expenses. These contracts are
reported in the financial statements at contract value, which represents
contributions made under the contracts, plus earnings, less withdrawals and
expenses, because they are considered fully benefit responsive. The fair value
at December 31,1998 approximated the contract value. During 1999, the insurance
contracts expired and were not renewed. Average yields for the period from
January 1, 1998 through the respective expiration dates were between 6.2% -
7.5%.
Employee contributions and matching contributions are recorded in the period in
which they are
-5-
<PAGE>
earned by participants.
Accounts receivable from or payable to brokers represents the net cash value of
security trades initiated but not yet settled at each respective year end.
Use of Estimates
----------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and related notes to the
financial statements. Changes in such estimates may affect amounts reported in
future periods.
NOTE 3 - ELIGIBILITY REQUIREMENTS
---------------------------------
Employees become eligible to participate in the Plan on the first month
following one year 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.
NOTE 4 - ADMINISTRATION OF THE PLAN
-----------------------------------
State Street Bank and Trust Company serves as trustee and record keeper for the
Plan.
The Administrative Committee administers the Plan. The Investment Committee has
authority, responsibility and control over the management of the assets of the
Plan. Members of both committees are appointed by the Board of Directors of
Baxter and are employees of Baxter.
Substantially all investment manager, trustee and administrative fees incurred
in the administration of the Plan were paid from the assets of the Plan.
-6-
<PAGE>
NOTE 5 - INVESTMENTS
--------------------
Investments representing five percent or more of the Plan's assets at December
31, 1999 and 1998 are summarized as follows:
<TABLE>
<CAPTION>
December 31, 1999 December 31, 1998
-------------------------- ---------------------------
Fair Fair
Value Cost Value Cost
----- ---- ----- ----
<S> <C> <C> <C> <C>
Baxter Common Stock, 2,182,205 shares and
1,851,385 shares at December 31, 1999
and 1998, respectively $136,031,313 $109,221,649 $102,763,156 $ 59,022,248
S&P 500 Equity Index Fund 217,482,674 141,475,881 159,064,206 109,665,390
</TABLE>
Investments are segregated into various investment funds as follows:
<TABLE>
<CAPTION>
December 31, 1999 December 31, 1998
------------------------------ -------------------------------
Fair Fair
Value Cost Value Cost
----- ---- ----- ----
<S> <C> <C> <C> <C>
Stable Income Fund $ 459,710,760 $ 459,720,830 $ 466,123,932 $ 460,361,548
Baxter Common Stock Fund 148,473,220 121,663,556 105,616,982 61,876,074
Composite Fund 220,401,132 203,680,811 268,351,193 230,757,574
General Equity Fund 270,364,483 229,490,237 236,311,924 188,856,984
Cardinal Common Stock Fund 15,827,541 964,314 28,413,284 1,308,030
S&P 500 Equity Index Fund 217,733,891 141,475,836 159,302,407 109,903,591
Daily International EAFE Equity Index Fund 29,233,640 23,477,208 14,920,002 14,461,915
Loan Fund 28,571,785 28,571,785 27,912,005 27,912,005
-------------- -------------- -------------- --------------
$1,390,316,452 $1,209,044,577 $1,306,951,729 $1,095,437,721
============== ============== ============== ===============
</TABLE>
The fund amounts above include $34,097,133 and $66,850,176 of cash and cash
equivalents at December 31, 1999 and 1998, which are awaiting investment in
their respective portfolios.
Net appreciation for each respective year is comprised of:
Year ended December 31,
----------------------
1999 1998
---- ----
Unrealized appreciation (depreciation), net $(22,156,290) $ 31,181,022
Realized gain, net 83,961,983 103,723,825
------------ -------------
$ 61,805,693 $ 134,904,847
============ ============
-7-
<PAGE>
Net appreciation in fair value for each significant class of investment, which
includes realized and unrealized gains and losses, is as follows:
Year ended December 31,
----------------------
1999 1998
---- ----
U.S. government and government
agency issues $ (4,008,664) $ 2,265,051
Corporate and other bonds (2,051,840) 80,135
Commingled investments 26,106,245 33,778,594
Common stock 41,759,952 98,781,067
------------- ------------
$ 61,805,693 $134,904,847
============= ============
NOTE 6 - DISTRIBUTION PRIORITIES UPON TERMINATION OF THE PLAN
-------------------------------------------------------------
Upon termination of the Plan, the account balance of each participant will
become 100% vested and all assets, net of expenses, will be distributed to the
participants or beneficiaries.
NOTE 7 - TAX STATUS OF THE PLAN
-------------------------------
The Internal Revenue Service has determined and informed the Company by a letter
dated May 4, 1999 that the Plan is designed in accordance with applicable
sections of the Internal Revenue Code. The Plan has not been amended since
receiving the determination letter.
NOTE 8 - RELATED PARTIES
------------------------
At December 31, 1999 and 1998, 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, and held shares of common stock of
Baxter, the Plan sponsor. These transactions are allowable party-in-interest
transactions under ERISA and the regulations promulgated thereunder.
-8-
<PAGE>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment
Purposes Page 1 of 17
December 31, 1999
<TABLE>
<CAPTION>
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- -------------------------------- ------------------ -------------------
<S> <C> <C> <C>
Cash & cash equivalents:
* State Street Bank
and Trust Co. Short Term Inv. Fund - $34,097,133
------------------ -------------------
Common stocks:
Aetna Inc Common Stock - 4,429,192
Alcan Alum Ltd Common Stock - 3,835,188
Allstate Corp Common Stock - 1,946,621
Ambac Finl Group Inc Common Stock - 3,365,661
America Online Inc. Common Stock - 3,186,188
American Elec Pwr Inc Common Stock - 3,530,315
American Intl Group Common Stock - 2,320,824
American Std Cos Inc Del Common Stock - 6,348,192
AMFM Inc. Common Stock - 1,911,778
Applied Materials Inc. Common Stock - 2,882,159
Arrow Electrs Inc Common Stock - 1,666,596
Ashland Inc Common Stock - 713,495
Associates First Cap Corp Class A - 3,446,709
AT + T Corp Common Stock - 9,249,960
Avnet Inc Common Stock - 1,298,588
Bank One Corp Common Stock - 3,510,761
Bankamerica Corp New Common Stock - 7,009,491
* Baxter International Inc Common Stock - 136,031,313
Bellsouth Corp Common Stock - 2,824,542
Bergen Brunswig Corp Class A - 482,643
BMC Software Inc Common Stock - 4,586,008
Boeing Co. Common Stock - 1,294,996
Bristol Myers Squibb Co Common Stock - 3,460,216
Cabot Corp Common Stock - 199,522
Canadian Pac Ltd New Common Stock - 3,679,124
Cardinal Health Inc. Common Stock - 15,560,476
Central & South West Corp Common Stock - 670,635
Century Tel Enterprises Inc Common Stock - 2,811,621
Champion Int'l Corp Common Stock - 4,300,349
Chubb Corp Common Stock - 2,946,570
Cigna Corp Common Stock - 3,577,960
Cinergy Corp Common Stock - 675,321
Cisco Sys Inc Common Stock - 6,569,598
Citigroup Inc Common Stock - 4,143,901
Citizens Utils Co Del Cl B - 4,567,863
Clear Channel Communications Common Stock - 1,606,704
Colgate Palmolive Co Common Stock - 1,375,889
Columbia / HCA Healthcare Corp Common Stock - 1,391,715
Consolidated Papers Inc Common Stock - 1,242,943
Cooper Inds Inc. Common Stock - 2,263,899
Cooper Tire & Rubber Co. Common Stock - 646,524
Costco Whsl Corp New Common Stock - 2,464,063
Crown Cork & Seal Inc. Common Stock - 1,265,946
CSX Corp Common Stock - 5,147,698
Cypress Semiconductor Corp Common Stock - 1,681,224
Dell Computer Corp Common Stock - 8,994,515
Delta Air Lines Inc Common Stock - 1,601,319
</TABLE>
<PAGE>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment
Purposes Page 2 of 17
December 31, 1999
<TABLE>
<CAPTION>
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ -------------------
<S> <C> <C> <C>
Dillards Inc CL A - 738,824
Disney Walt Co Disney Common Stock - 1,822,731
Dow Chem Co Common Stock - 6,454,819
Du Pont E I De Nemours & Co Common Stock - 2,019,940
Eastman Chemical Co Common Stock - 2,149,559
Ebay Inc Common Stock - 606,755
E M C Corp Common Stock - 2,820,449
Englehard Corp Common Stock - 802,808
Enron Corp Common Stock - 2,962,774
Federal Home Loan Mtg Corp Common Stock - 4,017,372
Federal National Mtg Assn Common Stock - 5,533,625
Federated Dept Stores Inc Del Common Stock - 3,195,845
FMC Corp Common Stock New - 907,038
Ford Motor Co Del Common Stock - 2,219,993
Foundational Health Sys Inc Common Stock - 296,459
Gap Inc. Common Stock - 2,752,767
General Electric Co Common Stock - 1,331,699
Goldman Sachs Group Inc Common Stock - 1,192,503
Goodrich B F Co Common Stock - 331,855
Goodyear Tire and Rubber Common Stock - 1,959,051
Hasbro Inc Common Stock - 2,781,174
Home Depot Inc Common Stock - 6,724,123
Honeywell Intl, Inc. Common Stock - 149,785
Illinova Corp Common Stock - 3,626,298
IMS Health Inc. Common Stock - 567,424
Ingram Micro Inc Class A - 192,140
Intel Corp Common Stock - 6,700,726
International Business Machs Common Stock - 1,602,401
International Paper Co Common Stock - 6,267,852
Kaufman & Broad Home Corp Common Stock - 2,631,721
Kimberly Clark Corp Common Stock - 3,840,199
Kohls Corp. Common Stock - 3,163,166
Kroger Co. Common Stock - 1,062,321
Litton Inds Inc Common Stock - 1,287,597
Loews Corp Common Stock - 1,500,706
Loral Space & Communications Common Stock - 1,466,952
Lowes Cos Inc USDO.50 - 3,746,998
Lubrizol Corp Common Stock - 1,242,962
Lucent Technologies Inc Common Stock - 2,020,194
Lyondell Chemical Co Common Stock - 426,268
Magna International Inc Common Stock - 2,011,904
Mallinckrodt Inc New Common Stock - 3,241,092
May Dept Stores Co Common Stock - 1,674,732
MBIA Inc Common Stock - 4,837,310
MBNA Corp Common Stock - 5,781,627
Mead Corp Common Stock - 925,909
Mediaone Group Inc. Common Stock - 5,546,398
Medtronic Inc. Common Stock - 1,722,792
Merrill Lynch & Co. Inc. Common Stock - 768,114
Microsoft Corp Common Stock - 6,443,878
Midamerica Energy Holdings Co Common Stock New - 3,432,119
Millennium Chemicals Inc Common Stock - 730,626
Minnesota Mng + Mfg Co Common Stock - 2,662,323
Morgan Stanley Dean Witter Common Stock New - 6,325,726
Motorola Inc. Common Stock - 713,687
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Purposes Page 3 of 17
December 31, 1999
Identity of Description of Cost of Current
issue Investment Asset value
---------------------------------- --------------------------------- ---------------- ------------------
<S> <C> <C> <C>
New Centy Energies Inc. Common Stock - 516,774
Nokia Corp Common Stock - 8,645,053
Norfolk Southern Corp. Common Stock - 2,426,179
Northwest Airlines Class A - 664,650
Occidental Pete Corp Common Stock - 3,529,363
Office Depot Inc Common Stock - 3,029,231
Old Rep International Corp Common Stock - 518,190
Oracle Corp Common Stock - 2,039,550
Owens Ill Inc Common Stock New - 1,180,015
Pacificare Health Systems Class B - 1,236,583
Parametric Technology Corp Common Stock - 3,091,763
Partnerre Ltd Common Stock - 1,748,639
Penney J C Inc Common Stock - 2,440,503
Pfizer Inc Common Stock - 2,685,525
PG&E Corp Common Stock - 487,304
Philip Morris Cos Inc Common Stock - 2,110,076
Phillipos Pete Co Common Stock - 4,239,835
Puget Sound Energy Inc Rts call thru 1/25/01 - 1,011,887
Quantum Corp Common Stock - 2,047,003
Republic NY Corp Common Stock - 512,768
Reynolds R J Tob Holdings Inc. Common Stock - 357,684
Ryder Sys Inc Common Stock - 369,832
Safeway Inc Common Stock New - 1,987,453
Schering Plough Corp Common Stock - 5,458,179
Seagate Technology Common Stock - 1,478,419
Sears Roebuck & Co Common Stock - 5,427,029
Solectron Corp Common Stock - 2,229,972
Sprint Corp Common Stock - 5,060,175
St. Paul Cos Inc Common Stock - 4,285,150
Sun Microsystems Inc Common Stock - 574,472
Target Corp Common Stock - 1,627,130
Tech Data Corp Common Stock - 878,800
Telephone & Data Sys Inc Common Stock - 2,991,149
Temple Inland Inc Common Stock - 567,424
Texas Instruments Inc Common Stock - 2,395,565
Texas Utils Co Common Stock - 1,776,396
Time Warner Inc Common Stock - 2,858,858
Tyco Intl Ltd New Common Stock - 6,783,053
Union Carbide Corp Common Stock - 6,019,817
Union Pacific Corp Common Stock - 2,589,065
United Technologies Corp Common Stock - 3,169,688
Ust Inc Com USDO.50 - 1,968,197
V F Corp Common Stock - 824,940
Vodafone Airtouch PLC Sponsored ADR - 1,473,764
Wal Mart Stores Inc Common Stock - 1,887,124
Walgreen Co Common Stock - 1,501,583
Warner Lambert Co Common Stock - 3,339,152
Weatherford Intl Inc New Common Stock - 2,686,248
Westvaco Corp Common Stock - 1,955,597
Whirlpool Corp Common Stock - 70,792
Wisconsin Energy Corp Common Stock - 580,747
Yahoo Inc. Common Stock - 556,384
------------------ -------------------
- $550,543,654
------------------ -------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Purposes Page 4 of 17
December 31, 1999
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ---------------- --------------
<S> <C> <C> <C>
Fixed Income Securities:
Advanta Mtg LN TR SER 1999 3 CL A3 - 447,915
American Airlines CL A 1 9.710 1/2/2007 - 458
ANRC Auto Owner TR SER 1999 A NT CL A4 6.940 4/17/2006 - 406,343
Associates Corp. North Amer. SR NT 5.75 11/01/2003 - 332,613
AT&T Corp NT 6.000 3/15/2009 - 158,165
BankAmerica Corp. SR NT 5.875 2/15/2009 - 887,183
Citibank CR Card Master TR I Ser 1999 7 CL A 6.650 11/15/2006 - 585,473
Comcast Cable Communications Exchange NT 8.875 5/1/2017 - 296,864
Continental Airlines Past Thru CTF SER 1997 4 CL4 6.900 1/2/2018 - 1,445,099
Country Home LN Inc NT 6.850 6/15/2004 - 585,198
DLJ Coml Mtg Corp Coml Mtg CTF 1999 CG2 CLA 1B 1.00 6/10/2009 - 462,648
DuPont E I De Nemours & Co NT 6.850 6/15/2004 - 226,155
EOP Oper Ltd Partnership 6.625 2/15/2005 - 751,800
ERP Oper Ltd Partnership Mandatory Par Put Remktd Sec 1.00 4/13/2015 - 1,073,769
FED HM LN PC C00690 6.000 12/01/2028 - 1,075,927
FED HM LN PC C19920 6.000 12/01/2029 - 1,082,663
FED HM LN PC C00701 6.50 1/1/2029 - 1,525,264
FED HM LN PC G00810 7.00 11/1/2027 - 1,008,538
FED HM LN BKS 5.125 9/15/2003 - 282,929
Federal Home LN MTG Corp Deb 5.750 3/15/2009 - 887,347
Federal Nat'l Mtg Assn Benchmark NT 5.75 6/15/2005 - 2,367,858
Federal Nat'l Mtg Assn Benchmark NT 5.125 2/13/2004 - 2,575,984
Finova Cap Corp 6.25 11/01/2002 - 967,678
Firststar Bk. Milwaukee Nat'l Tranche SR 00001 6.250 12/1/2002 - 924,955
First Union Natl Bank Chase Coml Mtg Passthru CTF 1999 C2 6.650 4/15/2009 - 564,872
First Union Natl BK Coml Mtg TR 1999 C4 CL A2 Coml Mtg Passthru 7.39 11/15/2009 - 587,193
FNBC 1993 A Pass thru TR Pass thru Ctf Ser 1993 A 8.08 1/5/2018 - 354,276
FNMA Pool 6.50 8/01/2028 - 409,249
FNMA Pool 8.50 1/1/2002 - 41
FNMA Pool 8.50 4/1/2002 - 31
FNMA Pool 6.00 12/01/2013 - 2,019,492
FNMA Pool 7.00 8/1/2023 - 11
FNMA Pool 7.00 11/1/2027 - 842,034
FNMA Pool 6.00 4/01/2028 - 2,117,163
FNMA Pool 6.50 5/1/2024 - 317,417
FNMA Pool 7.00 7/01/2028 - 324,311
FNMA Pool 6.50 10/01/2028 - 923,641
FNMA Pool 6.00 10/01/2013 - 1,636,836
FNMA Pool 6.50 6/1/2029 - 919,538
FNMA Pool 7.00 8/1/2029 - 427,283
Ford Motor Cr Co Global Landmark SECS Globls 6.700 7/16/2004 - 877,653
Ford Motor Cr Co 7.375 10/28/2009 - 902,981
General Motors Accep Corp Tranche TR 00513 5.350 5/4/2001 - 3,908,094
General Motors Accep Corp 5.875 1/22/2003 - 336,986
General Motors Accep Corp 6.42 8/15/2008 - 637,982
GNMA Pool 7.50 3/15/2028 - 1,349,991
GNMA Pool 11.50 4/15/2013 - 1,068
GNMA Pool 7.00 4/15/2028 - 567,853
GNMA Pool 7.50 4/15.2027 - 58,536
GNMA Pool 7.50 11/15/2027 - 487,225
GNMA Pool 7.00 4/15/2029 - 1,598,808
GNMA Pool 7.00 7/15/2029 - 3,720,473
GNMA Pool 7.5 12/15/2028 - 2,327,471
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Purposes Page 5 of 17
December 31, 1999
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ -------------------
<S> <C> <C> <C>
GNMA Pool 6.50 5/15/2029 - 2,288,770
GNMA Pool 7.50 12/15/2027 - 1,358,950
Green Tree Financial Corp. 1998 1 MFD Sr/Sub CTF CLA4 6.040 11/1/2029 - 438,966
GTE Corp Shelf 15 7.510 4/1/2009 - 624,289
Hertz Corp SR NT 6.500 5/15/2006 - 414,955
Hertz Corp SR NT 7.625 8/15/2007 - 373,584
Honda Auto Lease TR 1999 A Asset Bkd NT CL A5 6.650 7/15/2005 - 466,661
IMC Home Equity LN TR Ser 1997 3 Pass thru Ctf CL 9A 7.08 8/20/2028 - 578,186
International Business Machs 7.50 6/15/2013 - 274,970
Intl Lease Fin Corp Mtn Tranche TR 00437 5.78 3/01/2001 - 788,784
Jet Equip TR SR NT CL A 1995 B 144A 7.63 8/15/2012 - 251,026
LB Coml Conduit Mtg TR 1999 C1 CL A1 Mtg 6.410 8/15/2007 - 498,436
LB Coml Conduit Mtg TR 1999 C1 CL A2 Mtg Passthru 6.780 4/15/2009 - 636,476
LCI International Inc. SR NT 7.25 6/15/2007 - 478,977
Lehman Bros Inc. SR Sub NT 7.360 12/15/2003 - 271,276
Mashantucket Western Pequot Taxable SPL REV BD SER A 144A 6.910 9/1/2012 - 470,234
MBNA Master CR Card TR II SER 1997 F Asset Backed CTF 6.600 11/15/2004 - 326,739
Merrill Lynch + Co Inc NT 6.000 2/17/2009 - 893,231
Money Store TR 1996 D Asset Bkd CTF CL A9 7.00 4/15/2008 - 455,809
News Amer Holdings Inc 8.500 2/15/2005 - 513,669
Nomura Asset Secs Corp Coml Mtg CTF 1998 D6 CLA 1B 6.590 3/15/2030 - 271,846
Norsk Hydro A S Deb 6.700 1/15/2018 - 175,974
Onyx Accep Owner TR SER.7999C CL A4 6.760 5/15/2004 - 518,011
Osprey Trust Osprey Inc SR Seed NT 144A 8.310 1/15/2003 - 667,777
Peoples Bank Bridgeport CT Sub NT 7.20 12/1/2006 - 317,056
Petroleum Geo SVCS ASA SR NT 6.250 11/19/2003 - 1,119,566
PNC FDG Corp Sub NT 7.500 11/1/2009 - 934,123
Premier Auto Tr 1999 1 Asset Bkd NT CL A 4 5.820 10/8/2003 - 272,002
Quebec Prov CDA NT 7.500 9/15/2029 - 482,912
Raytheon Co NT 6.150 11/1/2008 - 885,300
Residential Accredit LNS Inc SER 1999 QS7 CL A 1 6.75 6/25/2029 - 1,269,346
Residential Accredit LNS Inc SER 1999 QS9 CL A 1 7.00 7/25/2029 - 754,375
Simon Debartolo Group LP NT 6.875 11/15/2006 - 322,538
Southwest Airlines Co DEB 7.375 3/1/2027 - 246,883
Sprint Cap Corp NT 6.900 5/1/2019 - 1,042,077
Spintab AB Undated Sub NT Step up 144A 1.00 12/29/2049 - 384,474
Team Fleet Fing Corp 1998 2 Rentl Car Nt 144A CL A 6.070 7/25/2002 - 846,097
Texaco Cap Inc. GTDNT 7.09 2/1/2007 - 289,329
Texas Utilities Co. SR NT SER A 144A 6.20 10/1/2002 - 380,064
Times Mirror Co New NT 7.450 10/15/2009 - 396,054
Time Warner Entmt Co L P SR Deb 8.375 3/15/2023 - 362,575
TRW Inc NT 6.625 6/1/2004 - 653,220
Tyco Intl Group S A GTD NT 144A 6.875 9/5/2002 - 786,003
US Bancorp Mtn BK Ent Tranche TR 00122 6.500 6/15/2004 - 863,512
U.S. Treasury Bonds 7.25PCT BND 15Aug22 7.250 8/15/2022 - 7,935,502
USA Waste Svcs Inc. SR NT 7.00 10/1/2004 - 474,120
US West Communications Inc NT 144A 7.200 11/1/2004 - 277,992
Viacom Inc SR NT 7.750 6/1/2005 - 792,251
Wal Mart Stores Inc NT 6.875 8/10/2009 - 776,103
Worldcom Inc GA 6.40 8/15/2005 - 858,894
------------------ -------------------
- $ 86,337,298
------------------ -------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Purposes Page 6 of 17
December 31, 1999
Identity of Description of Cost of Current
issue Investment Asset valuue
------------------------------------- --------------------------------- ------------------ -------------------
<S> <C> <C> <C>
Brundage
Cash & cash equivalents:
State Street Bank Short-term investment fund, 5.494% - $ 1,875,266
------------------ -------------------
Fixed income securities:
AT&T CDA Inc SR NT, 7.65%, 9/15/06 - 1,978,920
American Express CR ACCT MSTR, 6.8%, 12/15/03 - 1,400,434
Bombardier Cap MTNS, 7.5%, 8/15/04 - 1,489,849
Chase Manhattan CR CARD MASTER, 7.04%, 2/15/04 - 2,004,360
Conseco Inc Medium term SR NTS, 1%, 6/15/01 - 1,381,780
FED HM LN PC, 6.5%, 12/01/02 - 930,698
FED HM LN PC, 8%, 03/01/28 - 1,594,536
Federal Home Loan Corp., 6%, 11/15/09 - 1,970,760
Federal National MTG ASSN REMIC, 6.75%, 05/25/21 - 2,115,440
Federal National MTG ASSN GTD, 6%, 5/25/24 - 2,791,961
Federal National MTG ASSN MTN, 6.06%, 2/03/06 - 2,410,949
GNMA Pool 8%, 8/15/23 - 982,183
General Motors ACCEP CORP NT, 6%, 2/01/02 - 1,764,846
Heller Fin'l Inc MTN BK ENT, 6.5%, 7/22/02 - 981,880
Hyundai Auto Receivables TR, 5.9%, 4/15/01 - 70,852
Korea Dev Bk BD, 7.125%, 9/17/01 - 992,660
PP&L Transition BD LLC, 6.83%, 3/25/07 - 2,376,000
Phillip Morris 7.25%, 1/15/03 - 1,765,206
Residential Asset SEC MTG PASS, 6.32%, 4/25/30 - 1,881,720
Saxon Asset SEC TR, 7.525%, 6/25/14 - 1,988,120
Scandinaviska Enskilda Sub NT Step Up, 1%, 12/29/49 - 929,220
Societe Generale Step up perpetual Sub NT,1%, 4/29/49 - 964,870
TMS Home Equity LN TR, 7.8%, 10/15/21 - 803,396
United States Treas. Notes, 6.375%, 3/31/01 - 5,010,950
United States Treas. Notes, 6.625%, 4/30/02 - 4,030,640
Yosemite Sec Trust I, 8.25%, 11/15/04 - 2,102,163
------------------ -------------------
$ 46,714,392
------------------ -------------------
Standish Ayer & Wood
Cash & cash equivalents:
Federal Home Loan Disc. Notes, .01%, 1/21/00 - 548,455
Federal National Assn Disc Notes, .01%, 4/10/00 - 787,760
State Street Bank ST Investment Fund, 5.494% - 671,922
------------------ -------------------
- $ 2,008,137
------------------ -------------------
Fixed income securities:
Abbey Natl PLC Sub reset cap secs, 1%, 6/29/49 - 360,724
Advanta Mtg LN TR, 6.44%, 5/25/29 - 244,745
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Purposes Page 7 of 17
December 31, 1999
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ -------------------
<S> <C> <C> <C>
Ahold Fin USA Inc NT, 6.25%, 5/01/09 - 313,649
Albertsons Inc SR DEB, 7.45%, 8/1/29 - 95,045
American Fin'l Group Inc SR DEB, 7.125%, 4/15/09 - 291,109
American STD Inc SR NT, 7.375%, 4/15/05 - 189,000
Amvescap PLC SR NT, 6.6%, 5/15/05 - 377,724
Aramark Svcs Inc GTD NT, 7%, 7/15/06 - 184,840
Aramark Svcs Inc GTD NT, 6.75%, 8/01/04 - 186,998
Bank UTD Corp Sub NT, 8.875%, 5/01/07 - 354,480
Bear Sterns Cos Inc Global NT, 6.15%, 3/02/04 - 190,174
British Sky Broadcasting USD NT, 8.2%, 7/15/09 - 193,020
Capital One Master TR Asset Bkd CTF CL A, 5.43%, 1/15/07 - 284,531
Chase Coml Mtg Secs Corp Mtg CTF CL A 1, 6.45%, 12/19/04 - 384,585
City Natl BK CA Sub NT accredited invs, 6.375%, 1/15/08 - 357,884
Cox Communications Tranche TR, 6.69%, 9/20/04 - 194,852
Cox Enterprises NT, 6.625%, 6/14/02 - 147,024
Daimler Chrysler North Amer GTD NT, 6.9%, 9/1/04 - 296,856
Delta Airlines NTS, 8.3%, 12/15/29 - 336,816
Delta FDG Home Equity Asset Bkd CTF CL A, 6.34%, 12/15/28 - 375,612
Diageo Cap PLC MTN BE Tranche TR, 7.25%, 11/1/09 - 269,456
Diageo Cap PLC GTD NT, 6.125%, 8/15/05 - 377,568
Duke Realty LTD NT, 7.375%, 9/22/05 - 340,134
EQP Oper LTD NT, 6.5%, 1/15/04 - 357,630
Federal Home Ln Mtg Corp Deb, 5.75%, 3/15/09 - 2,511,960
Federal Natl Mtg Assn 5.625%, 5/14/04 - 1,194,525
Federal Natl Mtg Assn Cons BD, 6.5, 8/15/04 - 271,563
FMMA Pool 8.5%, 6/1/12 - 522,561
First UN Natl BK FL Tranche SB, 6.18%, 2/15/36 - 372,768
First USA Secd NT TR SECD NT, 6.5%, 1/18/06 - 400,700
Ford Motor CR CO SECS Globls, 6.7%, 7/16/04 - 538,313
Fort James Corp SR NT, 6.875%, 9/15/07 - 356,003
Franchise Fin Corp Amer SR NT, 7%, 11/30/00 - 345,884
GNMA Pool 8%, 5/15/26 - 31,676
GNMA Pool 8%, 7/15/26 - 72,925
GNMA Pool 9%, 12/15/17 - 54
GS Escrow Corp SR NT, 7%, 8/1/03 - 186,718
GS Escrow Corp SR NT, 7.125%, 8/1/05 - 179,752
Goldman Sachs Group Tranche TR, 6.34%, 3/1/06 - 212,555
Goldman Sachs Group NT, 7.25%, 10/1/05 - 171,568
Goldman Sachs Group NT, 6.625%, 12/1/04 - 192,912
Host Marriot SR NT Ser D, 8.375%, 2/15/06 - 141,000
IMC Home Equity LN TR Ser, 6.65%, 2/20/29 - 378,248
IDEX Corp SR NT, 6.875%, 2/15/08 - 351,980
International Business Machs Deb, 8.375%, 11/1/19 - 191,625
Kaufman & Broad Home Corp SR NT, 7.75%, 10/15/04 - 232,500
Kroger Co SR Deb, 8%, 9/15/29 - 72,969
Lear Corp 8.11%, 5/15/09 - 352,001
Mashantucket Western Pequot Revenue BD, 6.57%, 9/1/13 - 159,040
Merck & Co. inc Shelf 3, 6.4%, 3/1/28 - 87,966
Morgan Stanley Cap I Inc Coml Mtg CTF, 6.25%, 7/15/07 - 354,442
Mortgage Cap FDG Inc Mtg passthru CTF, 7.9%, 2/15/06 - 333,619
National City Corp Sub M, 5.75%, 2/1/09 - 349,976
National Westminster BK PLC Reset Sub NT, 1%, 4/29/49 - 600,569
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Purposes Page 8 of 17
December 31, 1999
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ ---------------
<S> <C> <C> <C>
News Amer Hldgs Inc GTD SR Deb, 9.5%, 7/15/24 - 169,073
News Amer Inc GTD SR Deb, 7.3%, 4/30/28 - 89,198
Ontario Prov CDA BD, 5.5%, 10/1/08 - 354,308
Park Pl Entmt Corp SR NT, 7.95%, 8/1/03 - 371,377
Residential Asset Sec Mtg Pass Ser 98 KS3 CL A, 5.98%, 10/25/29 - 372,188
Residential Asset Sec Mtg Pass Ser 99 KSI CL A, 6.32%, 4/25/30 - 376,344
Royal Carribean Cruises LTD SR NT, 7.5%, 10/15/27 - 179,226
Safeway Inc NT, 6.05%, 11/15/03 - 357,390
St George BK LTD Sub NT, 7.15%, 10/15/05 - 191,820
Simon Debartolo Group Tranche TR, 7.125%, 6/24/05 - 94,202
Simon Debartolol 6.875%, 10/27/05 - 372,820
Societe Generale Step up perpetual Sub NT, 1%, 4/29/49 - 217,096
Standish Ayer & Wood Intl fixed income FD - 2,399,076
Stagecoach Hldgs PLC NT, 8.625%, 11/15/09 - 173,660
TCI Communications SR NT, 6.375%, 5/1/03 - 391,428
TRW Inc NT, 6.625, 6/1/04 - 264,193
Tenet Healthcare Corp SR NT, 8.625%, 12/1/03 - 370,313
Time Warner Inc NT, 7.75%, 6/15/05 - 176,930
Tricon Global Restaurants Inc SR NT, 7.65%, 5/15/08 - 187,762
Tyco Intl Group Yankee, 6.375%, 6/15/05 - 210,776
Tyco Intl Group GTD NT, 6.875%, 9/5/02 - 197,222
Union Planters BK Natl Assn Sub NT Accd Invs, 6.5%, 3/15/18 - 176,818
US Home Corp New SR NT, 8.25%, 8/15/04 - 374,920
United States Tres BD STRP PRN 8/15/20 - 112,127
United States Treas Bds DTD, 11.25%, 2/15/15 - 318,058
United States Treas Bds 7.875%, 2/15/21 - 111,781
United States Treas Bds 8.125%, 5/15/21 - 4,298,438
United States Treas Nts 7.875%, 11/15/04 - 396,503
United States Treas Nts 7.125%, 2/29/00 - 100,281
United States Treas Nts 6.625%, 4/30/02 - 251,915
United States Treas Nts Inflation Index, 3.625%, 7/15/02 - 781,607
United States Treas Nts 4.625%, 11/30/00 - 912,855
United States Treas Nts 3.875%, 1/15/09 - 659,490
United States Treas Nts 6%, 8/15/09 - 2,446,094
UPM Kymmene Corp 7.45%, 11/26/27 - 113,310
Viacom Inc SR NT, 7.75%, 6/1/05 - 176,143
WMX Technologies Inc NT, 6.375%, 12/1/03 - 180,178
Westinghouse CR Corp 8.875%, 6/14/14 - 161,255
------------------ -----------
- $36,960,995
------------------ -----------
Pacific Investment
Cash & cash equivalents:
Commerzbank AG NY Branch DTC CP Generic Cusip, 6.2%, 5/10/00 - 1,500,000
State Street Bank ST Investment Fund, 5.494% - 1,822,313
------------------ -----------
- $ 3,322,313
------------------ -----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Purposes Page 9 of 17
December 31, 1999
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ -----------------
<S> <C> <C> <C>
Fixed Income:
AT&T Cap Corp Tranche TR, 6.8%, 2/1/01 - 696,199
AT&T Cap Corp Tranche TR, 7%, 8/15/01 - 1,001,970
Advanta Mtg Ser 99 4 Mtg LN Asset Bkd NI, 5.7%, 11/25/29 - 998,427
AID Inca Infrastructure FIN FRN, 5.03%, 3/26/09 - 2,000,000
GNMA 6.5%, 12/15/99 - 955,703
FHLMC 7.5%, 12/1/99 - 989,690
American Residential Mtg LN TR Assbkd CTF CL A, 1%, 5/25/29 - 694,990
Bear Sterns Cos Inc SR NT, 6.125%, 2/1/03 - 868,194
Bear Sterns Mtg Secs Inc Psthru CTF Ser 95, 7%, 8/25/24 - 960,000
Beaver VY II FDG Corp Secd Lease Oblig BD, 8.25%, 6/1/03 - 484,127
Block Mtg Finance Inc Asset bkd CTF Ser 99, 7.122%, 4/27/01 - 906,095
CWMBS Inc Ser 98 A 13, 6.5%, 12/25/28 - 1,799,360
Columbia/HCA Healthcare Corp Tranche TR, 8.13%, 8/4/03 - 482,435
Community Program LN TR Ser 87 A 4, 4.5%, 10/1/18 - 1,941,974
Contimortgage Home Equity LN Passthru CTF CL A, 1%, 6/15/28 - 971,672
Fed Home Ln PC .99%, 11/1/06 - 1,489,425
Federal Home Ln Mtg Corp Ser 1480 CL 1480/LZ, 7.5%, 3/15/23 - 1,475,530
Federal Home Ln Mtg Corp Ser 1548 CL 1548 Z, 7%, 7/15/23 - 2,206,821
Federal Home Ln Banks Preassign, 5.88%, 4/15/08 - 8,494,176
Federal Home Ln Mtg Corp Ser 2043 CL ZP, 6.5%, 4/15/28 - 1,737,620
Federal Home Ln Mtg Corp Ser 1627 CL 1627C, 6%, 12/15/23 - 379,731
Federal Home Ln Mtg Corp Ser 1775 CL 1775 Z, 8.5%, 3/15/25 - 2,027,021
Federal Home Ln Mtg Corp Preassign, 6.5%, 1/15/24 - 1,012,364
Federal Natl Mtg Assn Remic TR 1992, 8.932%, 8/25/22 - 209,106
Federal Natl Mtg Assn Remic TR 93 104 CL Z, 6.5%, 4/25/19 - 149,657
Federal Natl Mtg Assn Remic TR 1994 34 CL GZ, 6%, 3/25/09 - 127,806
Federal Natl Mtg Assn Ser 1996 57 CL Z, 7%, 12/25/26 - 892,500
FNMA Pool 6.173%, 5/1/36 - 212,540
FNMAPool 6.262%, 2/1/09 - 4,615,164
Federal Natl Mtg Assn 6.98%, 1/1/10 - 1,300,355
FHA Merril 128 NCP, 7.43%, 10/19/27 - 543,970
First Sec Corp Del NT, 5.875%, 11/1/03 - 938,260
Flagship Auto Receivables Assete bkd NT CL A, 6.42%, 11/18/02 - 1,601,249
Ford Mtr 7.75%, 11/15/02 - 1,524,975
Ford Mtr Global NT, 1%, 2/13/03 - 1,002,440
GMAC Coml Mtg Sec Inc Mtg CTF 1998 C1 CL A1, 6.411%, 11/15/07 - 1,277,483
GMAC Coml Mtg Sec Inc Mtg CTF 1998 C1 CL A 2, 6.7%, 3/15/08 - 2,843,550
General Electric Cap Corp Min Tranche TR, 5/19/00 - 1,974,375
General Motors Accep Corp MTN VAR, 1%, 8/6/01 - 2,507,425
Green Tree Finl Corp Home Equity Ln, 6.29%, 10/15/13 - 1,335,433
Heller Finl Inc Tranche TR, 1%, 2/5/01 - 1,004,760
Housing Sec Inc Ser 1994 2 CL A, 6.5%, 7/25/09 - 521,801
Lehman Brothers Hldgs MTN Tranche, 1%, 4/1/02 - 805,480
Mellon Residential FDG Corp TBC2 CL A 4 CTF, 6.58%, 7/25/29 - 987,500
Merril Lynch PAC Amer ABN, .99%, 9/15/27 - 926,675
MID ST TR UV Asset bkd NT, 8.33%, 4/1/30 - 299,542
Morgan Stanley Dean Witter Tranche TR, 1%, 4/22/04 - 1,498,935
Niagra Mohawk Pwr Corp SR NT Ser C, 7.125%, 7/1/01 - 453,187
Norwest Integrated Structured Mtg Passthru CTF I A4, 7%, 9/25/29 - 2,603,521
Occidental Pete Corp SR NT, 1%, 4/1/13 - 1,446,210
OCWEN Mtg Ln 1%, 10/25/29 - 847,522
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Purposes Page 10 of 17
December 31, 1999
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ -----------------
<S> <C> <C> <C>
Pimco FDS Intl FD Instl CL - 1,648,336
PNC Mtg Secs Corp 7.25%, 10/25/29 - 2,349,200
PP & L Transition Ser 1999 1 BD, 6.83%, 3/25/07 - 594,000
Philip Morris NT, 7.25%, 9/15/01 - 1,290,913
Philip Morris DTD, 6%, 7/15/01 - 1,464,240
Salomon Bros Mtg passthru CTF Ser 1999 3CLA, 5.7%, 4/25/29 - 1,064,216
Salomon Bros Mtg CTF Ser 1999 AQ2 CLA 1, 5.8%, 12/15/29 - 1,692,380
Small Bus Admin Deb Ser 1999 20 K, 7.06%, 11/1/19 - 1,071,353
Small Bus Admin Deb Ser 1999 20 L, 7.19%, 12/1/19 - 1,708,177
System Energy Res Inc Deb, 7.38%, 10/1/00 - 500,520
System Energy Res Inc Mtg Bond, 7.71%, 8/1/01 - 602,538
TCI Communications Tranche TR, 6.104%, 4/3/02 - 588,770
United Airlines Pass Thru Pass thru CTF Ser 1995, 9.56%, 10/19/18 - 778,740
United States Treas Bds 14%, 11/15/11 - 2,929,500
United States Treas Bds 12%, 8/15/13 - 6,142,426
United States Treas Bds 3.875%, 4/15/29 - 4,773,127
United States Treas Bds 6.5%, 10/15/06 - 1,496,010
United States Treas Bds Inflation Index, 3.625%, 7/15/02 - 4,383,605
WMC Mtg Ln Tr A Mtg CTF CL A, 1%, 6/20/28 - 534,050
Williams Cos Inc NT, 1%, 1/30/00 - 1,000,310
------------------ -------------
- $ 105,637,355
------------------ -------------
Bernstein
Cash & cash equivalents:
Euro Currency Cash - 3,285
Pound Sterling Cash - 801
Federal Home Ln Bk BK CONS DSC NT .01% 3/29/00 - 207,190
Federal Natl MTG ASSN DISC NTS .01% 3/3/00 - 5,355,004
Federal Natl MTG ASSN DISC NTS .01% 3/27/01 - 1,608,973
Ford Mtr Cr Co DISC CP YRS 1+2 5.850% 1/19/00 - 3,984,448
General Elec Cap CORP DISC 5.870% 1/19/00 - 3,991,564
General Mtrs ACCEP CORP YR 1+2 5.870% 1/19/00 - 3,096,835
SSB&Trust Co. Short Term Investment Fund 5.494% - 1,038,709
------------------ -------------
- $ 19,286,809
------------------ -------------
Fixed Income:
Canadian Dollar Canada GOVT TREAS BillsS CDS 4/13/00 - 1,643,540
Euro Currency Germany (FED REP) 6.25% 1/24/00 - 659,005
Euro Currency International SCCR Limited 1.00% 5/15/00 - 501,201
FNMA JAN 30 Single FAM 6.00% 12/1/99 - 2,954,449
FNMA JAN 30 Single FAM 6.50% 12/1/99 - 1,017,565
FNMA JAN 15 Single FAM 7.00% 12/1/99 - 1,749,539
FNMA JAN 30 SingleFAM 8.00% 12/1/99 - 2,701,788
FNMA JAN 30 Single FAM 8.50% 12/31/99 - 2,723,871
GNMA JAN 30 Single FAM 7.50% 12/15/99 - 1,700,650
Allied Cap COML MTG TR 6.310% 1/1/28 - 56,209
FHLMC JAN 30 Gold Single 6.5% 12/1/99 - 6,057,554
FHLMC JAN 30 Gold Single 7.5% 12/1/99 - 3,844,946
Amerada Hess Corp 7.875% 10/1/29 NT - 63,395
</TABLE>
<PAGE>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held Page 11 of 17
for Investment Purposes
December 31, 1999
<TABLE>
<CAPTION>
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ -------------------
<S> <C> <C> <C>
American Gen Fin Corp Mtn 6.55% 06/24/02 Tranche TR 00324 - 920,554
Asset Securitization Corp 7.010% 10/13/26 COML MTG 96 D3 CL A 1A - 74,978
Associates Corp North Amer 5.960% 5/13/37 NT - 394,577
FNMA TBA JAN 7 Balloon 6.5% 12/1/99 - 1,184,663
Bear Stearns COML MTG SECS INC 7.0% 8/20/18 - 286,020
Cp Limited Partnership 8.750% 3/2/00 SR NT DTD 3/2/95 - 390,371
California Maritime Infrastruc 6.630% 11/1/09 Taxable San Diego UNI PORT - 502,520
Capital Asset Resh Fdg 1998 A 5.905% 12/15/05 Tax Lien Collateralized BD - 219,971
Case Cr Corp 5.950% 8/1/00 Tranche TR 00004 - 997,730
Case Equip Receivable Tr 5.810% 5/15/03 SER 98 B Asset BKD NT CL A 3 - 412,748
Champion Intl Corp 9.7% 5/1/01 - 340,214
Chase Coml Mtg Secs Corp 7.6% 12/18/05 1996 1 MTG Passthru CTF CL A 1 - 561,252
Chase Coml Mtg Secs Corp 6.9% 9/19/06 1996 2 MTG Passthru CTF CL A 2 - 342,041
Chevy Chase Auto Receivables 6.5% 10/15/03 1997 1 Auto Receivables BKD - 88,476
Coca Cola Enterprises Inc 6.75% 9/15/28 DEB - 616,784
Commonwealth Edison Co 6.5% 4/15/00 - 820,648
Copelco Cap Fdg Corp Ii 6.34% 7/20/04 Lease BKD NT SER 1996 A CL A - 115,716
Copelco Cap Fdg Tr 5.78% 8/15/01 1998 A Lease BKD NT CL A 3 - 258,619
Credit Suisse 1St Boston Mtg 6.4% 1/17/35 COML MTG Passthru 1997 C2 CLA1 - 377,948
Credit Suisse First Boston 6.520 7/17/07 COML CTF 1997 C2 CL A2 - 359,366
Dlj Mtg Accep Corp 7.35% 9/18/03 2003 MTG 93 MF12 CL A 1 - 325,751
Dlj Coml Mtg Corp 1.00% 6/10/09 COML MTG CF 1999CG2 CL A 1B - 656,601
Dayton Hudson Corp 5.865% 8/15/27 Tranche TR 00021 - 969,872
Dow Chem Co 7.375% 11/1/29 NT - 850,947
FDIC REMIC TR 6.750 5/25/26 1996 CL COML MTG Passthru CTF - 178,849
FMAC LN Receivables TR 6.5% 9/15/20 NT SER 1998 A CL A 2 144A - 151,879
FMAC LN Receivables TR 6.690% 9/15/20 NT SER 1998 A CL A 3 144A - 218,025
Fairfax Fdg Tr 6.483% 4/2/13 1998 1 COML MTG CTF 144A CL A - 375,638
Federal Home Ln Mtg Pc Gte 6.00% 10/15/27 SER 2097 CL PX - 208,293
Federal Home Ln Mtg Corp 7.00% 08/15/29 Preassing 00431 SER 2176 CLOJ - 132,255
Federal Home Ln Mtg Corp 7.00% 8/15/29 Preassign 00440 - 416,373
Federal Home Ln Mtg Pc Gtd 6.5% 1/15/24 Series 1650 CLASS 1650 K - 163,912
Federal Natl Mtg Assn Gtd 7.0% 8/25/20 REMIC TR 1996 49 CL BA - 12,675
Federal Natl Mtg Assn Gtd 6.5% 8/25/13 REMIC TR 1999 41 CL PD - 435,945
FNMA Pool 8.5% 8/1/27 - 1,467,309
FNMA Pool 6.9% 6/1/07 - 788
FNMA Tba May 15 6.00% 1/1/99 - 431,681
Felco Fdg Ii Llc .99% 10/15/00 98 1 AUTO LSE BKD NT 144A A A1 - 263,599
First Union Lehman Bros Comml 7.150% 6/18/29 SERE 97 C1 PASSTHRU CTF CL A 1 - 303,611
Fleet Boston Corp 7.375% 12/1/09 SUB NT - 205,538
Florida Residential Ppty + Cas 7.25% 7/1/02 NT SER 1997A 144A - 973,692
Florida Windstorm Underwriting 7.125% 2/25/19 SER 1999 A SR NT 144A - 288,420
GE Cap MTG SVCS Inc. 6.5% 2/25/24 REMIC MC PTHRU CTF SER94 5CLA4 - 27,803
GE Cap MTG SVCS Inc. 6.5% 3/25/24 REMIC MC 1994 11 CL A1 - 38,486
GNMA Pool 7.00% 2/15/28 - 1,071,757
GNMA Pool 7.00% 12/15/27 - 2,818,523
GNMA Pool 9.5% 11/15/21 - 108,541
GNMA Pool 9.5% 8/15/21 - 530,454
GNMA Pool 8.00% 1/15/27 - 35,612
Goodyear Tire + Rubr Co 7.00% 3/15/28 NT - 378,299
Govt Natl Mtg Assn Gtd Remic 8.00% 6/20/25 REMIC TR 1995 4 CL CQ - 411,888
Green Tree Finl Corp 5.76% 3/1/30 1999 1 MTG PSTH CTF CL A 4 - 336,823
Green Tree Finl Corp .99% 3/1/20 1999 1 MTG CTF CL A5 - 402,750
Green Tree Finl Corp 6.37% 3/1/30 1991 MTG CTF CL A 6 - 394,731
</TABLE>
<PAGE>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held Page 12 of 17
for Investment Purposes
December 31, 1999
<TABLE>
<CAPTION>
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ -------------------
<S> <C> <C> <C>
Green Tree Lease Fin Llc 6.17% 9/20/05 1997 1 Lease BKD NT - 311,548
Green Tree Rec Equip + Consum .99% 6/15/19 1998 A CTF CL A 1C - 406,893
Greenpoint Manufactured Hsg 7.27% 3/15/14 SER 1999 3 CTF CL IA 7 - 825,125
Harley Davidson Eaglemark 5.81% 5/15/02 1998 1 Contract BKD NT CL A 1 - 61,006
Hyder Plc 6.75% 12/15/04 NT 144A - 663,110
Ingersoll Rand Co 6.015% 2/15/28 Tranche TR 00054 - 792,960
Ingersoll Rand Co 6.255% 2/15/01 SR NT - 391,947
Intl Lease Fin Corp Mtn 5.4% 2/22/02 Tranche TR 00483 - 804,104
Israel St 7.25% 12/15/28 BD - 286,759
LB Coml Conduit MTG TR 6.21% 10/15/08 1998 C4 MTG PSSTHR CTF CL A 1 - 847,430
LB Coml Conduit MTG TR 6.78% 12/31/30 1999 C1 CL A2 MTG PASSTHRU - 405,216
Lilly Del Mar Inc 1.00% 8/5/29 CAP SECS 144A 3C7 - 660,627
Merck And Co Medium Term Nts 5.67% 5/3/37 Tranche TR 00011 - 613,770
Morgan Jp Coml Mtg Fin Corp .99% 1/15/30 MTG PASS THRU CTF 1998 C6 A1 - 336,227
Morgan Stanley Cap 1 Inc 7.217% 11/15/28 COML MTG PSTHRU WF1 CL A2 144A - 621,835
Morgan Stanley Cap 1 Inc 6.59% 10/03/30 COML MTG CTF 1997 XL1 CL A 1 - 360,977
Morgan Stanley Cap 1 Inc 6.72% 1/15/28 ALIC COML MTG Passthru CTFCA1B - 301,374
Morgan Stanley Cap 1 Inc 5.99% 1/15/28 97 ALIC COML MTG CTF CL A2 - 338,242
Morgan Stanley Cap 1 Inc 6.2% 5/3/05 COML MTG CTF 1998 XL1 CL A 1 - 566,208
NYCTL TR 6.46% 5/25/05 1997 1 TAX LIEN BD CL A 144A - 88,725
New York Ny 6.55% 8/1/00 Taxable SER E - 384,211
New York Ny 6.65% 8/1/01 Taxable SER E - 396,456
Newcourt Equip Tr Secs 5.24% 12/20/02 SER 1998 1 REC BKD NT CL A 3 - 174,150
Newcourt Receivables Asset Tr 6.87% 6/20/04% 6/20/04 1996 2 ASST BKD NT CL A - 50,884
Newcourt Receivables Asset Tr 6.24% 12/20/04 1996 3 Asset Backed NT CL A - 13,910
Newcourt Receivables Asset Tr 1.00% 5/20/05 SER 1997 1 CL A4 - 335,905
Nomura Asset Secs Corp 8.170% 3/4/20 CTF 95 MDIII CL A 1A - 341,120
Norsk Hydro A S 7.15% 1/15/29 DEB - 407,358
Oklahoma Dev Fin Auth Rev 6.82% 8/15/02 Taxable REF Hillcrest SER B - 222,046
Paine Webber Group Inc Mtn 6.95% 3/31/00 Tranche SR 00157 - 205,174
Paine Webber Group Inc Mtn 5.963% 7/20/00 Tranche TR 00218 - 398,416
Peachtree Franchise Loan Llc 6.680% 1/15/21 1999 A CL A1 - 405,095
Philip Morris Cos Inc 7.25% 9/15/01 NT - 441,889
Port Portland Or Appt Rev 5.76% 7/1/28 REF Taxable Portland INTL 14 - 384,372
Prudential Home Mortgage Sec 6.00% 5/25/24 MTG PTHRU CTF SER 94 15 CL A2 - 50,114
Prudential Secs Secd Fing Corp 6.48% 3/15/09 COML MTG Passthru CTF 1999NRF1 - 857,541
Quebec Prov Cda 7.125% 2/9/24 - 724,370
Rmf Coml Mtg Pass Thru Ctfs 7.1% 11/28/27 SER 1995 1 CL A 2 144A - 159,799
Rmf Com Lmtg Pass Thru Ctfs 6.751% 1/15/19 SER 1997 1 CL A2 144A - 621,510
Residential Fdg Mtg Secs I 7.00% 5/25/24 SER 1994 S13 CL A2 - 133,187
Riverside Cnty Ca Asset Lease 6.29% 6/1/14 - 399,816
Rohm + Haas Co 6.95% 7/15/04 NT - 804,291
Salomon Inc 6.625% 6/1/00 NT - 450,252
Structured Asset Secs Corp 6.790% 10/15/34 COML MTG Passthru CTF 97 LL I - 418,921
Supervalu Inc Medium Term Nts 6.5% 10/6/00 Tranche TR 00001 - 780,569
Ttx Co Mtn Book Entry 144A 5.75% 3/23/01 Tranche TR 00026 144A - 756,623
Telecominica De Puerto Rico In 6.15% 5/15/02 SR NT - 882,447
Transamerica Fin Corp Mtn 6.8% 12/14/01 Tranche SR 00216 - 885,461
Union Tank Car Co Mtn Book 5.91% 5/1/02 Tranche TR 00013 - 556,958
United States Treas Bds 7.5% 11/15/16 - 2,161,077
United States Treas Nts 6.5% 5/31/02 - 10,420,191
United States Treas Nts 3.625% 7/15/02 Inflation Index - 4,413,579
United States Treas Nts 5.875% 9/30/02 - 1,311,538
West Pa Pwr Co Mtn 6.375% 6/1/04 Tranche TR 00003 - 844,571
</TABLE>
<PAGE>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Page 13 of 17
Purposes
December 31, 1999
<TABLE>
<CAPTION>
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ --------------------
<S> <C> <C> <C>
Whirlpool Corp 9.5% 6/15/00 - 684,011
Xerox Corp Medium Term Nts 5.545% 7/22/37 Tranche TR 00040 - 679,452
------------------ ------------------
- $ 93,367,573
------------------ ------------------
Loomis
Cash & cash equivalents:
US Dollar Cash - (68,790)
SSB & Trust Co. Short Term Investment Fund - 977,344
------------------ ------------------
- $ 908,553
------------------ ------------------
Fixed Income:
AFC Home Equity LN TR 6.00% 1/20/13 SER 1993 2 CL A - 226,327
AMB PPTY LP 7.1% 6/30/08 2008 NT - 1,853,640
Advanta Home Equity Ln Tr 7.2% 11/25/08 Passthru CTF 1992 4 CL A1 - 100,618
Advanta Home Equity Ln Tr 5.95% 9/03/25 1993 1 Home Equity LN Passthru - 188,972
Associates Corp North Amer 6.25% 11/01/08 SR NT - 923,200
Bank Boston NA MTN 6.375% 3/25/08 - 3,644,152
Capital One Bk Mtn Book Entry 6.375% 2/15/03 Tranche TR 00096 - 527,483
Case Cr Corp 6.75% 10/21/07 NT - 728,064
Chase Manhattan Corp New 6.00% 11/1/05 - 932,690
Chilgener S A 6.5% 1/15/06 NT - 2,518,962
Citibank Cr Cord Master Tr I 5.875% 3/10/11 199902 PARTN CTF CL A - 898,750
Compania De Radiocomm Moviles 9.25% 3/8/08 - 1,740,000
Conagra Inc 7.00% 10/01/28 DEB - 1,537,970
Dana Corp 6.5% 3/1/09 NT - 1,275,554
Donaldson Lufkin + Jenrette Inc 6.875% 11/1/05 2005 SR NT - 3,603,708
Duke Cap Corp 7.5% 10/1/09 SR NT - 889,524
Enersis S A 7.4% 12/1/16 NT - 2,173,110
Federal Home Ln Mtg Pc Gtd 4.5% 11/15/07 SER 1404 FA - 1,819,403
Federal Home Ln Mtg Pc Gtd 6.05% 2/15/11 SER 1540 CL C - 1
Federal Home Ln Mtg Corp 5.75% 12/15/25 SER 2059 CL HA - 345,872
Federal Home Ln Mtg Corp 6.00% 12/15/18 SER 2078 CL PA - 491,250
Federal Home Ln Mtg Corp 6.00% 7/15/27 Preassign 00249 - 976,344
Federal Home Ln Mtg Corp Gtd 6.00% 4/15/25 Preassign 00392 - 898,430
Federal Home Ln Mtg Pc Gtd 3.5% 12/15/21 SER 1629 CL 1629 HA - 1,167,274
Federal Home Ln Mtg Pc Gtd 6.00% 11/15/22 SER 1673 CL 1673 H - 1,677,924
Federal Home Ln Mtg Corp 6.00% 2/15/11 SER 1819 CL 1819 E - 2,822,790
Federal Home Ln Mtg Pc Gtd 6.5% 11/15/21 SER 1861 CL 1961 G - 3,104,000
Federal Home Ln Mtg Pc Gtd 6.5% 7/15/24 SER 1921 CL 1921 C - 1,143,744
Federal Home Ln Mtg Corp 5.00% 1/15/04 DEB - 234,140
Fed Home Ln Mtg Corp 6.625% 9/15/09 DEB - 1,457,340
Federal Natl Mtg Assn Gtd 6.00% 7/25/06 SER 1993 174 CL Z - 20,278
Federal Natl Mtg Assn 5.625% 5/14/04 - 430,029
Federal Natl Mtg Assn 6.5% 4/18/21 SER 1997 36 CL G - 1,960,200
Federal Natl Mtg Asn 6.00% 3/25/23 REMIC TR 1999 28 CL PH - 5,136,750
FNMA Pool 5.5% 5/1/11 - 207,199
FNMA Pool 6.00% 12/1/28 - 1,305,232
FNMA Pool 6.5% 11/1/09 - 247,502
FNMA Pool 6.5% 4/1/10 - 381,481
FNMA Pool 5.5% 4/1/11 - 2,061,327
</TABLE>
<PAGE>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Page 14 of 17
Purposes
December 31, 1999
<TABLE>
<CAPTION>
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ -------------------
<S> <C> <C> <C>
FNMA Pool 6.00% 4/1/28 - 2,219,302
Firstbank P R 7.625% 12/15/05 SUB CAP NT - 1,547,592
Ford Mtr Co Del 6.375% 2/1/29 BD - 755,604
Ford Mtr Cr Co 5.8% 1/12/09 CDT - 709,008
Gnma Pool 7.00% 9/15/08 - 1,675,811
Green Tree Finl Corp 6.08% 3/1/30 1999 2 MFD HSG SR SUB Passthru - 780,656
Green Tree Finl Corp 5.95% 2/1/31 1999 3 MFD HSG SR + SUB Passthru - 678,342
Household Fin Corp 5.875% 9/25/04 NT - 2,500,620
Poland (Rep Of) 4.00% 10/27/14 VAR PCT BDS 10/27/14 USD PDIB - 2,700,720
Korea Elec Pwr Corp 7.75% 4/1/13 - 1,888,440
Lehman Bros Hldgs Inc 6.625% 11/15/00 NT - 702,039
Lehman Bros In 7.360% 12/15/03 SR SUB NT - 742,560
Lehman Bros Inc 6.5% 4/15/08 NT - 643,216
Mbna Master Cr Card Tr 11 7.00% 2/15/12 SER 1999 J Asset BKD CTF CL A - 980,170
Merey Sweeny Lp 8.85% 12/18/19 SV BD 144A - 960,250
NWA TR 8.26% 3/10/06 NO 1 SR Aircraft NT CL A - 582,345
NWA TR 9.36% 9/10/07 - 624,471
Nomura Asset Secs Corp 7.514% 3/15/18 SER 94 MD1 CL A 1B - 406,770
Nomura Asset Secs Corp 7.5% 5/25/24 94 2 CL 2A - 546,488
OSCC Home Equity LN TR 6.025% 6/15/08 SER 93 2 Asset Backed NT - 208,868
PDVSA Fin Ltd 6.8% 11/15/08 NT 144A - 1,664,592
Pemex Fin Ltd 10.61% 8/15/17 NT - 1,083,457
Philip Morris Cos Inc 6.375% 2/1/06 NT - 2,519,303
Pioneer Nat Res Co 6.5% 1/15/08 SR NT - 1,255,410
Provident Cos Inc 6.375% 7/15/05 SR NT - 1,611,685
Pulte Corp 7.00% 12/15/03 SR NT - 2,387,955
R B Falcon Corp 6.75% 4/15/05 SR NT SER B - 880,000
South Africa Rep 8.5% 6/23/17 NT - 2,366,000
Telekom Malaysia Berhad 7.875% 8/1/25 DEB 144A - 2,621,107
Time Warner Inc 6.625% 5/15/29 DEB - 383,706
---------------- -----------------
Standish - $ 90,277,721
---------------- -----------------
Cash & cash equivalents:
Federal Home Ln Bk Cons Dsc Nt .01% 2/9/00 - 1,392,440
Federal Home Ln Mtg Disc Nts .01% 1/21/00 DISC NTS - 847,612
State Street Bank + Trust Co 5.494% Short Term Investment Fund - 411,516
--------------- -----------------
- $ 2,651,568
--------------- -----------------
Fixed Income:
Standish Ayer + Wood Invt Tr INTL Fixed Income FD - 3,378,073
Afc Home Equity Ln Tr 6.00% 1/20/13 SER 1993 2 CL A - 1
Abbey Natl Plc 1.00% 6/29/49 SUB Reset CAP Secs PREP - 518,541
Advanta Mtg Ln Tr 6.44% 5/25/29 SER 1999 2 CL A3 - 195,796
Ahold Fin Usa Inc 6.25% 5/1/09, NT - 201,632
American Finl Group Inc Oh 7.125% 4/15/09 SR DEB - 358,632
American Std Inc 7.375% 4/15/05 SR NT - 259,875
Amvescap Plc 6.6% 5/15/05 SR NT - 542,978
Aramark Svcs Inc 7.00% 7/15/06 GTD NT - 531,415
Avalon Pptys Inc 7.375% 9/15/02 NT - 569,745
Bank Utd Corp 8.875% 5/1/07 2007 SUB NT - 449,008
</TABLE>
<PAGE>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held Page 15 of 17
for Investment Purposes
December 31, 1999
<TABLE>
<CAPTION>
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ -------------------
<S> <C> <C> <C>
Bear Stearns Cos Inc 6.15% 3/2/04 GLOBAL NT - 261,489
British Sky Broadcasting Group 8.2% 7/15/09 USD NT - 298,359
Csc Hldgs Inc 8.125% 7/15/09 SSR NT SER B - 101,250
Capital One Master Tr 5.43% 1/15/07 SER 4 Asset BKD CTF CL A - 403,086
City Natl Bk Ca 6.375% 1/15/08 SUB NT Accredited INVS - 357,884
Cox Communications Inc 6.69% 9/20/04 Tranche TR 00005 - 243,565
Cox Enterprises Inc 6.625% 6/14/02 NT 144A - 269,544
Delta Air Lines Inc De 8.3% 12/15/29 NTS 144A - 481,165
Delta Fdg Home Equity Ln Tr 6.34% 12/15/28 1999 1 Asset BKD CTF CL A 6F - 539,942
Diageo Cap Plc Mtn Be 7.25% 11/1/09 Tranche TR00001 - 367,440
Diageo Cap Plc 6.125% 8/15/05 GTD NT - 542,754
Eop Oper Ltd Partnership 6.5% 1/15/04 NT - 238,420
Federal Home Ln Mtg Corp 5.75% 3/15/09 DEB - 3,562,416
Federal Natl Mtg Assn 5.625% 5/14/04 - 1,791,788
Federal Natl Mtg Assn 6.5% 8/15/04 CONS BD - 271,563
FNMA Pool 8.5% 6/1/12 - 316,703
First Un Natl Bk Fl 6.18% 2/15/36 Tranche SB 00001 - 419,364
First Un Bk N C Charlotte 5.8% 12/1/08 Tranche SB 00003 - 220,215
First Usa Secd Nt Tr 6.5% 1/18/06 1998 1 SECD NT 144A - 576,006
Florida Windstorm Underwriting 7.125% 2/25/19 SER 1999 A SR SECD NT 144A - 251,796
Ford Mtr Cr Co 6.7% 7/16/04 Global Landmark SECS GLOBLS - 538,313
Franchise Fin Corp Amer 7.00% 11/30/00 SR NT - 370,590
Gmac Coml Mtg Sec Inc 1.00% 9/15/06 MTG PT CTF SER 1997 C1 CL A2 - 195,446
GNMA Pool 8.00% 10/15/26 - 286,380
Gs Escrow Corp 7.00% 8/1/03 SR NT - 420,116
Gs Escrow Corp 7.125% 8/1/05 SR NT - 89,876
Goldman Sachs Group L P 6.34% 3/1/06 144A Tranche TR 00277 - 283,407
Goldman Sachs Group L P 7.25% 10/1/05 NT - 269,607
Goldman Sachs Group L P 6.625% 12/1/04 NT 144A - 265,254
Imc Home Equity Ln Tr 6.65% 2/20/29 SER 1997 7 CL A 8 - 378,248
Ici Wilmington Inc 6.75% 9/15/02 GTD NT - 392,144
Ici Wilmington Inc 6.95% 9/15/04 GTD NT - 292,491
Idex Corp 6.875% 2/15/08 SR NT - 439,975
International Business Machs 8.375% 11/1/19 DEB - 273,750
Kaufman + Broad Home Corp 7.750% 10/15/04 SR NT - 441,750
Kroger Co 8.00% 9/15/29 SR DEB - 97,292
Lehman Bros Inc 7.625% 6/1/06 SR SUB NT - 124,008
Lehman Bros Inc 6.625% 2/15/08 NT - 115,978
Merck + Co Inc 6.4% 3/1/28 Shelf 3 - 131,949
Midland Rlty Accep Corp 7.233% 1/25/29 SER C2 CL A2 - 569,607
Morgan Stanley Cap I Inc 6.25% 7/15/07 COML MTG CTF 1998 WF1 CL A 1 - 509,511
National City Corp 5.75% 2/1/09 SUB M - 306,229
National Westminster Bk Plc 1.00% 4/29/49 Reset SUB NT - 768,728
News Amer Hldgs Inc 9.5% 7/15/24 GTD SR DEB - 197,251
News Amer Inc 7.3% 4/30/28 GTD SR DEB - 133,797
Ontario Prov Cda 5.5% 10/01/08 BD - 509,318
Reliastar Finl Corp 6.5% 11/15/08 NT - 113,693
Residential Asset Sec Mtg Pass 5.98%10/25/29 SER 1998 KS3 CL A 1 7 - 535,020
Residential Asset Sec Mtg Pass 6.32% 4/25/30 SER 1999 KSI CL A 1 8 - 540,995
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment Purposes Page 16 of 17
December 31, 1999
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- -------------------------------------- ------------------ -------------
<S> <C> <C> <C>
Residential Asset Sec Mtg Pass 7.15% 7/25/30 SER 1999 KS2 CL A I 9 - 681,188
Royal Carribbean Cruises Ltd 7.5% 10/15/27 2027 SR NT - 246,436
Safeway Inc 7.25% 9/15/04 NT - 371,389
St George Bkltd 7.15% 10/15/05 2005 SUB NT 144A - 263,753
Salomon Inc 6.25% 6/15/05 NT - 142,305
Sequa Corp 9.00% 8/1/09 Tranche TR 00005 - 483,750
Simon Debartolo Group Lp Mtm B 7.125% 6/24/05 Tranche TR 00001 - 94,202
Simon Debartlol 6.875% 10/27/05 - 419,423
Societe Generale 1.00% 4/29/49 Step UP Perpetual Sub NT 144A - 289,461
Stagecoach Hldgs NT, 8.625%, 11/15/09 - 248,085
TCI Communications SR NT, 6.375%, 5/1/03 - 562,678
TRW Inc NT, 6.625%, 6/1/04 - 384,280
Telephone & Data Sys Inc DEB, 7%, 8/1/06 - 580,368
Tenet Healthcare Corp SR NT, 8.625%, 12/1/03 - 123,438
Texaco Cap 9.75%, 3/15/20 - 478,864
Tricon Global Restuarants SR NT, 7.65%, 5/15/08 - 258,173
TYCO Intl Group GTD NT, 6.875%, 9/5/02 - 517,708
USA Waste Svcs Inc Mandatorily tendered SR NT, 6.125%, 7/15/01 - 237,938
USA Waste Svcs Inc 7%, 7/15/28 - 188,588
Union Planters Bank Sub NT Accd Invs, 6.5%, 3/15/18 - 265,227
US Home Corp SR NT, 8.25%, 8/15/04 - 351,488
United States Tres Bd Strp Prn Stripped prin pmt, 8.875%, 2/15/19 - 219,936
United States Tres Bd Strp Prn 8/15/20 - 161,961
United States Treas Bds 8.5%, 2/15/20 - 797,762
United States Treas Bds 8.125%, 5/15/21 - 5,330,063
United States Treas Nts 7.875%, 11/15/04 - 687,271
United States Treas Nts 6.625%, 4/30/02 - 957,277
United States Treas Nts inflation index, 3.625%, 7/15/02 - 1,134,534
United States Treas Nts 5.75%, 10/31/02 - 98,625
United States Treas Nts 4.625%, 11/30/00 - 2,171,114
United States Treas Nts 3.875%, 1/15/09 - 952,481
United States Treas Nts 6%, 8/15/09 - 3,584,375
United Technologies Corp NT, 6.625%, 11/15/04 - 245,510
UPM Kymmene 7.45%, 11/26/27 - 181,296
Viacom SR NT, 7.75%, 6/1/05 - 276,796
Wellsford Residential Ppty NT, 9.375%, 2/1/02 - 412,784
------------------ -------------
- 52,511,684
------------------ -------------
</TABLE>
<PAGE>
Baxter International Inc. and Subsidiaries
Incentive Investment Plan Schedule I
Line 27a Form 5500 - Schedule of Assets Held for Investment
Purposes Page 17 of 17
December 31, 1999
<TABLE>
<CAPTION>
Identity of Description of Cost of Current
issue Investment Asset value
------------------------------------- --------------------------------- ------------------ -----------------
<S> <C> <C> <C>
Common/collective trusts:
* State Street Bank & Trust Co S + P 500 Flagship fund - $217,482,674
* State Street Bank & Trust Co Daily EAFE fund - 29,112,195
------------------ ----------------
- $246,594,868
------------------ ----------------
* Participant loans - $ 28,571,785
------------------ ----------------
Group annuities:
Met Life variable rate, open ended maturity - 24,728,210
------------------ ----------------
- 24,728,210
Benefit Responsive Interest rate Wrapper Contracts:
Bankers Trust open ended maturity - (18,667,426)
Chase open ended maturity - 885,317
Deutsche Bank open ended maturity - (18,296,755)
------------------ ----------------
- (36,078,864)
------------------ ----------------
- $1,390,316,452
================== ================
</TABLE>
* Party-in-interest
<PAGE>
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: July 5, 2000 By: /s/ Brian P. Anderson
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Brian P. Anderson
Senior Vice President and
Chief Financial Officer
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