Kimberly-Clark 2010 Annual Report Download - page 64

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair Value Measurements at
December 31, 2009
Total
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
(Millions of dollars)
Cash and Cash Equivalents
Assets held directly ......................................... $ 20 $ 20 $ —
Held through mutual and pooled funds .......................... 182 12 170
Fixed Income
Assets held directly:
U.S. government and municipals .......................... 130 92 38
U.S. corporate debt ..................................... 278 — 278
U.S. securitized fixed income ............................. 72 — 72
International bonds ..................................... 92 18 74
Held through mutual and pooled funds:
U.S. government and municipals .......................... 74 — 74
U.S. corporate debt ..................................... 231 — 231
International bonds ..................................... 291 — 291
Multi-sector ........................................... 52 1 51
Equity
Assets held directly:
U.S. equity ............................................ 495 494 1
International equity ..................................... 243 243 —
Held through mutual and pooled funds:
U.S. equity ............................................ 829 2 827
Non-U.S. equity ........................................ 742 1 741
Global equity .......................................... 164 — 164
Total Plan Assets .............................................. $3,895 $883 $3,012
Inputs and valuation techniques used to measure the fair value of plan assets vary according to the type of
security being valued. Substantially all of the equity securities held directly by the plans are actively traded and
fair values are determined based on quoted market prices. Fair values of U.S. Treasury securities are determined
based on trading activity in the marketplace.
Fair values of U.S. corporate debt, U.S. securitized fixed income and international bonds are typically
determined by reference to the values of similar securities traded in the marketplace and current interest rate
levels. Multiple pricing services are typically employed to assist in determining these valuations.
Fair values of equity securities and fixed income securities held through units of pooled funds are based on
net asset value (NAV) of the units of the pooled fund determined by the fund manager. Pooled funds are similar
in nature to retail mutual funds, but are typically more efficient for institutional investors than retail mutual
funds. As pooled funds are typically only accessible by institutional investors, the NAV is not readily observable
by noninstitutional investors.
Equity securities held directly by the pension trusts and those held through units in pooled funds are
monitored as to issuer and industry. Except for U.S. Treasuries, concentrations of fixed income securities are
similarly monitored for concentrations by issuer and industry. As of December 31, 2010, there were no
significant concentrations of equity or debt securities in any single issuer or industry.
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