Kimberly-Clark 2010 Annual Report Download - page 62

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
status, and Kimberly-Clark’s financial condition. The resulting strategic asset allocation is a diversified blend of
equity and fixed income investments. Equity investments are typically diversified across geography and market
capitalization. Fixed income investments are diversified across multiple sectors including government issues,
corporate debt instruments, mortgage backed securities and asset backed securities with a portfolio duration that
is consistent with the estimated payment of the associated liability. Actual asset allocation is regularly reviewed
and periodically rebalanced to the strategic allocation when considered appropriate.
The expected long-term rate of return is evaluated on an annual basis. In setting this assumption, we
consider a number of factors including projected future returns by asset class, current asset allocation and
historical long-term market performance.
The weighted-average expected long-term rate of return on pension fund assets used to calculate pension
expense for the Principal Plans was 8.19 percent in 2010 compared with 8.47 percent in 2009 and will be
7.35 percent in 2011. The expected long-term rate of return on the assets in the Principal Plans is based on an
asset allocation assumption of about 60 percent with equity managers, with expected long-term rates of return
ranging from 9 to 10 percent, and about 40 percent with fixed income managers, with an expected long-term rate
of return ranging from 5 to 6 percent.
Plan Assets
Pension plan asset allocations for our Principal Plans are as follows:
Asset Category
Target
Allocation
2011
Percentage of Plan
Assets
at December 31
2010 2009
Equity securities ...................................................... 60% 62% 63%
Fixed income securities ................................................ 40 38 37
Total ........................................................... 100% 100% 100 %
The plan assets did not include a significant amount of Kimberly-Clark common stock.
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