Kimberly-Clark 2010 Annual Report Download - page 65

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As of December 31, 2010 and 2009, there were less than $1 million of assets in the Principal Plans with a
level 3 fair value determination (significant unobservable inputs). In addition, during 2010 and 2009, there were
no significant transfers of assets in the Principal Plans among level 1, 2 or 3 fair value determinations.
Cash Flows
We anticipate contributing between $400 million and $500 million to our pension plans in 2011.
Estimated Future Benefit Payments
Over the next ten years, we expect that the following gross benefit payments and related Medicare Part D
reimbursements will occur:
Pension Benefits Other Benefits
Medicare Part D
Reimbursements
(Millions of dollars)
2011 ................................................ $ 360 $ 68 $ (4)
2012 ................................................ 362 67 (4)
2013 ................................................ 362 66 (5)
2014 ................................................ 367 67 (5)
2015 ................................................ 373 69 (5)
2016 – 2020 .......................................... 1,996 370 (26)
Health Care Cost Trends
Assumed health care cost trend rates affect the amounts reported for postretirement health care benefit
plans. A one-percentage-point change in assumed health care trend rates would have the following effects on
2010 data:
One-Percentage-Point
Increase Decrease
(Millions of dollars)
Effect on total of service and interest cost components .............................. $2 $2
Effect on postretirement benefit obligation ....................................... 31 29
Defined Contribution Pension Plans
In 2009, we took action with respect to our U.S. Incentive Investment Plan (a 401(k) plan), Retirement
Contribution Plan and Retirement Contribution Excess Benefit Program to discontinue all contributions to these
plans for future plan years (other than for certain employees subject to collective bargaining
agreements). Effective January 1, 2010, we adopted a new 401(k) profit sharing plan, and amended our
supplemental plan, to provide for a matching contribution of a U.S. employee’s contributions to the plans, subject
to predetermined limits, as well as a discretionary profit sharing contribution, in which contributions will be
based on our profit performance. Except for certain employees subject to collective bargaining agreements, U.S.
participants’ investment balances in our existing 401(k) plan and Retirement Contribution Plan were transferred
to the new 401(k) plan. We also have defined contribution pension plans for certain of our employees outside the
U.S.
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