2011 Political Contributions Report

Every country has different laws and regulations around engaging in the political process. Baxter respects local political customs and obeys all laws. The company’s Code of Conduct, which sets forth the core principles that govern Baxter’s business practices, contains a section on Public Affairs and Political Activities, including rules governing participation in the political process, who to contact with questions and other information.

The Public Policy Committee of Baxter's Board of Directors oversees Baxter's government affairs program and Political Action Committee, BAXPAC, reviewing annually political contributions, positions on pending legislative, and other political advocacy initiatives.

This Political Contributions Report provides information about corporate contributions made in the United States by Baxter as well as contributions made by BAXPAC. It also includes information about Baxter's lobbying expenses and membership in trade and industry groups.

Corporate Contributions

In the United States, Baxter contributed $34,000 to state candidates in 2011 after approval from the BAXPAC Board. U.S. law does not allow companies to make contributions to federal candidates. As discussed below, contributions to federal candidates may be made by BAXPAC.

Regarding the U.S. Supreme Court decision in the Citizens United case in 2010, which broadened the ability of corporations to make independent political expenditures in the context of federal elections (although not the ability to make direct contributions to federal candidates), Baxter has not made independent political expenditures or contemplated this form of activity in the past, and does not anticipate that the decision will impact how the company contributes or engages in the political process. Baxter strives to make contributions to candidates who champion and protect the legislative interests of the company, its employees and patients, without regard for the private political preferences of Baxter’s officers and executives. In 2011, Baxter did not participate in any ballot measures and it is not generally Baxter’s practice to do so.

Baxter’s Corporate Contributions to U.S. State Candidates, 2011
Member District Party Amount
California
Blumenfield, Bob H40 D $1,000
Fletcher, Nathan H40 R $1,000
Lara, Ricardo H50 D $1,000
Leno, Mark S3 D $1,000
Liu, Carol H21 D $1,000
Monning, Bill H27 R $1,000
Perea, Henry S31 D $1,000
Perez, Speaker John H46 D $1,000
Price, Curren S26 D $1,000
Steinberg, President Darrell S6 D $2,000
Strickland, Tony S19 R $1,000
Wagner, Don H70 R $1,000
Florida
Garcia, Rene S110 R $500
Grimsley, Denise S17 R $500
Hudson, Matt R101 R $500
Negron, Joe S28 R $500
Georgia
Channell, Mickey H116 R $1,000
Cooper, Sharon H41 R $250
Jerguson, Sean H22 R $250
Ralston, David H7 R $250
Williams, Tommie S19 R $250
Illinois
Cole, Sandy H62 R $250
Cross, Tom HD84 R $1,250
Cullterton, John J. SD6 D $1,750
Duffy, Dan S26 R $250
Feigenholtz, Sara H12 D $1,000
Harmon, Dan SD39 D $500
Hunter, Mattie SD33 D $500
Kotowski, Dan SD33 D $500
Link, Terry S30 D $1,000
Madigan, Michael J. H22 D $1,750
Mayfield, Rita HD60 D $250
Osmond, JoAnn H61 R $500
Pritchard, Robert H70 R $500
Radogno, Christine S41 D $1,250
Sullivan, Ed H51 R $250
Trotter, Donne E. S17 D $500
Mississippi
Bryan, Hob S7 D $500
Bryant, Phil Gov R $1,000
Burton, Terry S31 R $500
Coleman, Linda H29 D $500
Clarke, Eugene "Buck" S22 R $500
Reeves, Tate Lt. Gov R $1,000
Simmons, Willie S16 D $500
Watson, Percy H103 D $500
Total $34,000

Baxter's Corporate Contributions to 501(C)(4) and 527 Organizations, 2011

Membership in 501(c)(4) and 527 organizations is another avenue through which Baxter engages to advance the company's interests and those of its patients.

Baxter contributed the following to these 501(c)(4) organizations during 2011.

The Ripon Society $25,000
Third Way $32,000
Total* $57,000

Through its GAPP team, Baxter contributed $50,000 to the following 527 organizations during 2011.

Democratic Governors Association $25,000
Republican Governors Association $25,000
Total* $50,000
* Only includes organizations for which GAPP pays the annual dues.

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Baxter Political Action Committee

U.S. law does not allow companies to make contributions to federal candidates. Eligible U.S. employees can make voluntary individual contributions to Baxter's Political Action Committee, BAXPAC, to support U.S. federal and state candidates. BAXPAC is overseen by the BAXPAC Chairman, Vice Chair, and Treasurer/Secretary, as well as its Contribution Advisory Board. All BAXPAC officers and members of the Contribution Advisory Board are Baxter employees from various business groups, regions and franchises. BAXPAC operates in accordance with all relevant federal and state laws. More information is available on the Federal Election Commission website. BAXPAC strives to contribute to candidates who champion and protect the legislative interests of Baxter, its employees and its patients. Contributions by BAXPAC are made without regard for the private political preferences of Baxter’s officers and executives. BAXPAC made $146,000 in contributions in 2011.

BAXPAC Contributions to U.S. Federal and State Candidates, 2011
Member Federal House Federal Senate State Candidate District Party Amount
California
Becerra, Xavier X CA 31 D $1,000
Matsui, Doris X CA 5 D $5,000
Roybal-Allard, Lucille X CA 34 D $1,000
Schiff, Adam X CA 29 D $5,000
Florida
Rubio, Marco X FL R $1,000
Wasserman Schultz, Debbie X FL 20 D $1,000
Illinois
Dold, Robert X IL 10 R $1,500
Hultgren, Randall X IL 14 R $1,000
Roskam, Peter X IL 6 R $2,000
Shimkus, John X IL 19 R $2,000
Walsh, Joe X IL 8 R $2,500
Indiana
Coats, Daniel X IN R $1,000
Lugar, Richard X IN R $1,000
Maryland
Hoyer, Steny X MD 5 D $6,000
Michigan
Camp, Dave X MI 4 R $2,000
Dingell, John X MI 15 D $2,000
Mississippi
Thompson, Bennie X MS 2 D $2,500
North Carolina
Apodava, Thomas X NC 48 R $500
Berger, Philip X NC 28 R $1,000
Bingham, Stanley X NC 33 R $500
Butterfield, George X NC 1 D $3,000
Hackney, Joe X NC 54 D $500
Hartsell, Fletcher X NC 36 R $500
Hise, Ralph X NC 47 R $500
Howard, Julia X NC 79 R $750
Gillespie, Robert X NC 85 R $500
Nesbitt, Martin X NC 49 D $500
Purcell, William X NC 25 D $500
Shuler, Heath X NC 11 D $1,000
Tillis, Thomas X NC 98 R $1,000
Vaughan, Donald X NC 27 D $500
Walter Dalton
Campaign Committee
X NC D $500
New Jersey
Pallone, Frank X NJ 6 D $2,000
Pascrell, William X NJ 8 D $1,000
New York
Lee, Christopher X NY 26 R $5,000
Towns, Edolphus X NY 10 D $1,000
Ohio
Amstutz, Ron X OH 3 R $1,000
Batchelder, William X OH 69 R $1,000
Burke, David X OH 26 R $500
Carey, John X OH 87 R $1,000
Jones, Shannon X OH 7 R $1,000
Niehaus, Tom X OH 14 R $1,000
Wachtmann, Lynn X OH 75 R $1,000
Widener, Chris X OH 10 R $1,000
Pennsylvania
Brubaker, Michael X PA 36 R $500
Conklin, H. Scott X PA 77 D $500
Corman, Jacob X PA 34 R $1,000
Pileggi, Dominic X PA 9 R $500
Tennessee
Blackburn, Marsha X TN 7 R $2,000
Texas
Brady, Kevin X TX 8 R $1,000
Burgess, Michael X TX 26 R $1,000
Gonzalez, Charles X TX 20 D $2,000
King, Tracy TX 80 D $500
Kolkhorst, Lois X TX 13 R $1,000
Nelson, Jane X TX 12 R $2,000
Patrick, Dan X TX 7 R $2,000
Uresti, Carlos X TX 19 D $1,000
Zerwas, John X TX 28 R $1,000
Virginia
Cantor, Eric X VA 7 R $5,000
Wisconsin
Kind, Ron X WI 3 D $5,000
Ryan, Paul X WI 1 R $1,000
Total $92,500

Other BAXPAC Contributions, 2011
Payee Amount
Building Relationships in Diverse Geographic Environments PAC $5,000
Democratic Congressional Campaign Committee $5,000
Every Republican is Crucial $5,000
John S. Fund $1,000
National Republican Congressional Committee $5,000
National Republican Senatorial Committee $15,000
New Democrat Coalition PAC $5,000
Orrinpac $1,000
Tenn PAC Inc $1,500
The Freedom Project- Friends of John Boehner Committee $10,000
Total $53,500

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Lobbying Expenses

In 2011, Baxter spent approximately $2,407,000 on federal lobbying-related activities in the United States, to promote policies that support the company's objectives. This amount includes the salaries and overhead expenses of Baxter employees dedicated to this area, the value of time and related expenses of internal partners (such as corporate counsel), payments to external consultants and lobbyists, and trade association dues used for lobbying. Baxter adheres to all federal, state and local laws to ensure compliance in this area. Outside the United States, Baxter also complies with all applicable laws and regulations.

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Certain Memberships

Baxter maintains memberships in numerous industry and trade groups including organizations that engage in lobbying activity. The table below includes the amount that Baxter has been notified has been spent on political activity during 2011 by any organization to which to the best of its knowledge Baxter paid more than $50,000 in dues or otherwise during the year. Baxter believes that membership in these organizations is generally consistent with the company's interests as well as those of its shareholders, customers and patients. Even when Baxter does not share all of the views of one of these organizations, it believes that membership is worthwhile because such organizations encourage dialogue on important policy issues and help to move the industry to a consensus on such issues.

Political Expenditures by Certain U.S.-based Trade Associations, 2011*
AdvaMed $22,650
Biotechnology Industry Organization (BIO) $131,400
California Healthcare Institute $17,000
Healthcare Institute of New Jersey $305
Kidney Care Partners $13,800
Plasma Protein Therapeutics Association (PPTA) $12,420
* Only includes groups of which GAPP is aware. These dues are paid by Baxter’s businesses and not by GAPP.

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View Baxter's 2010 Political Contributions Report, 2009 Political Contributions Report and 2008 Political Contributions Report.