Kimberly-Clark 2010 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2010 Kimberly-Clark annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Information for Pension Plans with an ABO in Excess of Plan Assets
December 31
2010 2009
(Millions of dollars)
PBO ........................................................................ $5,187 $5,228
ABO ....................................................................... 5,076 5,108
Fair value of plan assets ........................................................ 4,135 3,981
Components of Net Periodic Benefit Cost
Pension Benefits Other Benefits
Year Ended December 31
2010 2009 2008 2010 2009 2008
(Millions of dollars)
Service cost ........................................... $56 $68 $73 $14 $14 $15
Interest cost ........................................... 309 310 324 44 47 49
Expected return on plan assets(a) ........................... (336) (269) (370) ———
Curtailments .......................................... —21 — ———
Amortization of prior service cost and transition amount ........ 236322
Recognized net actuarial loss ............................. 99 111 56 1—1
Other ................................................ 378—— (1)
Net periodic benefit cost ................................. $ 133 $ 251 $ 97 $62 $63 $66
(a) The expected return on plan assets is determined by multiplying the fair value of plan assets at the remeasurement date, typically the
prior year-end (adjusted for estimated current year cash benefit payments and contributions), by the expected long-term rate of return.
Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31
Pension Benefits Other Benefits
2010 2009 2008 2010 2009 2008
Discount rate .......................................... 5.85% 6.40% 6.14% 5.79% 6.50% 6.24%
Expected long-term return on plan assets .................... 7.96% 8.17% 8.23% ———
Rate of compensation increase ............................ 4.09% 3.94% 3.99% ———
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31
Pension Benefits Other Benefits
2010 2009 2010 2009
Discount rate ..................................................... 5.51% 5.85% 5.44% 5.79%
Rate of compensation increase ........................................ 4.05% 4.09% — —
Expected Long-Term Rate of Return and Investment Strategies for the Principal Plans
Strategic asset allocation decisions are made with the intent of maximizing return at an acceptable level of
risk. Risk factors considered in setting the strategic asset allocation include, among other things, plan
participants’ retirement benefit security, the estimated payments of the associated liabilities, the plan funded
57