Kimberly-Clark 2010 Annual Report Download - page 59

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Time-Vested
Restricted Share
Units
Performance-Based
Restricted Share
Units
Other Stock-Based Awards
Shares
(000’s)
Weighted-
Average
Grant-Date
Fair Value
Shares
(000’s)
Weighted-
Average
Grant-Date
Fair Value
Nonvested at January 1, 2010 .................................. 925 $61.56 1,671 $57.64
Granted ................................................... 104 63.13 791 60.73
Vested .................................................... (377) 62.27 (156) 65.29
Forfeited .................................................. (25) 58.79 (136) 65.72
Nonvested at December 31, 2010 ............................... 627 61.35 2,170 57.71
The total fair value of restricted shares and restricted share units that became vested during 2010, 2009 and
2008 was $31 million, $25 million and $56 million, respectively.
Note 11. Employee Postretirement Benefits
Pension Plans
Substantially all regular employees in North America and the U.K. are covered by defined benefit pension
plans (the “Principal Plans”) and/or defined contribution retirement plans. Certain other subsidiaries have defined
benefit pension plans or, in certain countries, termination pay plans covering substantially all regular employees.
The funding policy for the qualified defined benefit plans in North America and the defined benefit plans in the
U.K. 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.
Funding for the remaining defined benefit plans outside the U.S. is based on legal requirements, tax
considerations, investment opportunities, and customary business practices in these countries.
In 2009, we took action with respect to our U.S. defined benefit pension and supplemental benefit plans to
provide that no future compensation and benefit service will be accrued under these plans, other than for certain
employees subject to collective bargaining agreements, for plan years after December 31, 2009 (“U.S. DB
Pension Freeze”).
The U.S. DB Pension Freeze resulted in a pension curtailment charge aggregating $21 million in 2009 due
to the write-off of applicable unamortized prior service costs. In addition, the average remaining life expectancy
of inactive participants rather than the average remaining service lives of active employees must be used in the
amortization of actuarial gains and losses as a result of the freeze.
Other Postretirement Benefit Plans
Substantially all U.S. retirees and employees are covered by unfunded health care and life insurance benefit
plans. Certain benefits are based on years of service and/or age at retirement. The plans are principally
noncontributory for employees who were eligible to retire before 1993 and contributory for most employees who
retire after 1992, except that we provide no subsidized benefits to most employees hired after 2003.
In the U.S., health care benefit costs are capped and indexed by 3 percent annually for certain employees
retiring on or before April 1, 2004. The future cost for retiree health care benefits is limited to a defined fixed
cost based on the years of service for certain employees retiring after April 1, 2004. The annual increase in the
consolidated weighted-average health care cost trend rate is expected to be 7.1 percent in 2011 and to decline to
5.0 percent in 2015 and thereafter.
55