Kimberly-Clark 2010 Annual Report Download - page 50

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The COLI policies are a source of funding primarily for our nonqualified employee benefits and are
included in other assets. Available-for-sale securities are included in other current assets and other assets, as
appropriate. The derivative assets and liabilities are included in other current assets, other assets, accrued
expenses and other liabilities, as appropriate.
Level 1 Fair Values—The fair values of available-for-sale securities are based on quoted market prices in
active markets for identical assets. Unrealized losses on these securities aggregating $2 million and $4 million as
of December 31, 2010 and 2009, respectively, have been recorded in other comprehensive income until realized.
The unrealized losses have not been recognized in earnings because we have both the intent and ability to hold
the securities for a period of time sufficient to allow for an anticipated recovery of fair value to the cost of such
securities.
Level 2 Fair Values—The fair value of the COLI policies is derived from investments in a mix of money
market, fixed income and equity funds managed by unrelated fund managers. The fair values of derivatives used
to manage interest rate risk and commodity price risk are based on LIBOR rates and interest rate swap curves and
NYMEX price quotations, respectively. The fair value of hedging instruments used to manage foreign currency
risk is based on published quotations of spot currency rates and forward points, which are converted into implied
forward currency rates. Additional information on our use of derivative instruments is contained in Note 13.
Level 3 Fair Values—The fair value of certain available-for-sale securities was estimated based on quoted
market prices for the exchange-traded securities, adjusted to reflect the restrictions placed on the sale of these
securities. These securities were sold in 2010 for an amount that approximated their carrying value.
Fair Value Disclosures
As of December 31, 2010 and 2009, the Consolidated Balance Sheet contains the following financial
instruments, for which disclosure of fair value is required.
Carrying
Amount
Estimated Fair
Value
Carrying
Amount
Estimated Fair
Value For Further
Information SeeDecember 31, 2010 December 31, 2009
(Millions of dollars)
Assets
Cash and cash equivalents(a) .......... $ 876 $ 876 $ 798 $ 798
Time deposits(b) .................... 80 80 189 189
Notes receivable(c) .................. 611 597 607 591 Note 2
Other notes receivable (included in other
assets) ......................... —— 22 22
Liabilities and redeemable preferred and
common securities of subsidiaries
Short-term debt(d) .................. 79 79 107 107 Note 8
Monetization loan(c) ................ 397 397 397 398 Notes 2 and 8
Long-term debt(e) ................... 4,988 5,556 4,898 5,357 Note 8
Redeemable preferred and common
securities of subsidiaries ........... 1,047 1,127 1,052 1,128 Note 9
(a) Cash equivalents are comprised of certificates of deposit, time deposits and other interest-bearing investments with original maturity
dates of 90 days or less, all of which are recorded at cost, which approximates fair value.
(b) Time deposits, included in Other current assets on the Consolidated Balance Sheet, are comprised of deposits with original maturities of
more than 90 days but less than one year, all of which are recorded at cost, which approximates fair value.
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