Kimberly-Clark 2015 Annual Report Download - page 48

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Note 9 . Employee Postretirement Benefits
Substantially all regular employees in the U.S. and the United Kingdom are covered by defined benefit pension plans (the "Principal Plans") and/or defined
contribution retirement plans. The information presented for the Principal Plans for 2014 and 2013 also included Canada and Puerto Rico. Certain other
subsidiarieshavedefinedbenefitpensionplansor,incertaincountries,terminationpayplanscoveringsubstantiallyallregularemployees.Thefundingpolicyfor
ourqualifieddefinedbenefitpensionplansistocontributeassetsatleastequalinamounttoregulatoryminimumrequirements.NonqualifiedU.S.plansproviding
pensionbenefitsinexcessoflimitationsimposedbytheU.S.incometaxcodearenotfunded.
Substantially all U.S. retirees and employees have access to our unfunded healthcare and life insurance benefit plans. The annual increase inthe consolidated
weighted-averagehealthcarecosttrendrateisexpectedtobe5.8percentin 2016andtodeclineto4.6percentin 2028andthereafter.Assumedhealthcarecost
trend rates affect theamounts reported forpostretirement healthcare benefit plans.A one-percentage-point changein assumed healthcaretrend rates wouldnot
haveasignificanteffectonourfinancialresults.
EffectiveJanuary2015,theU.S.pensionplanwasamendedtoincludealump-sumpensionbenefitpayoutoptionforcertainplanparticipants.Inaddition,inApril
2015,theU.S.pensionplancompletedthepurchaseofgroupannuitycontractsthattransferredtotwoinsurancecompaniesthepensionbenefitobligationstotaling
$2.5billionforapproximately21,000Kimberly-ClarkretireesintheUnitedStates.Asaresultofthesechanges,werecognizedpensionsettlement-relatedcharges
of$0.8billionaftertax($1.4billionpre-taxinother(income)andexpense,net)during2015,mostlyinthesecondquarter.In2015,wemadecashcontributions
of$410relatedtothesechangestotheU.S.plan.
44 KIMBERLY-CLARKCORPORATION - 2015 Annual Report