XML 30 R15.htm IDEA: XBRL DOCUMENT v3.22.0.1
Employee Postretirement Benefits
 12 Months Ended
Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Employee Postretirement Benefits Employee Postretirement Benefits
Substantially all regular employees in the U.S. and the United Kingdom are covered by defined contribution retirement plans and certain U.S. and United Kingdom employees previously earned benefits covered by defined benefit pension plans that currently provide no future service benefit (the "Principal 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 our qualified defined benefit pension plans 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.
Substantially all U.S. retirees and employees have access to our unfunded health care and life insurance benefit plans. The annual increase in the consolidated weighted-average health care cost trend rate is expected to be 5.4 percent in 2022 and to decline to 4.5 percent in 2029 and thereafter. Assumed health care cost trend rates affect the amounts reported for postretirement health care benefit plans.
As a result of restructuring actions related to the 2018 Global Restructuring Program, aggregate pension settlement charges of $91, $49 and $46 during 2021, 2020 and 2019, respectively, and curtailment gains of $2 and $1 during 2021 and 2019, respectively, were recognized in Nonoperating expense, primarily related to the defined benefit pension plans in the U.S, Switzerland and the United Kingdom (see Note 2 for further information about the 2018 Global Restructuring Program).  
Summarized financial information about postretirement plans, excluding defined contribution retirement plans, is presented below:
Pension BenefitsOther Benefits
Year Ended December 31
2021202020212020
Change in Benefit Obligation
Benefit obligation at beginning of year$4,341 $4,047 $709 $693 
Service cost21 22 8 8 
Interest cost80 95 19 23 
Actuarial (gain) loss(a)
(105)333 (8)42 
Currency and other(54)134 (3)(10)
Benefit payments from plans(138)(169)— — 
Direct benefit payments(8)(8)(54)(47)
Settlements and curtailments(326)(113)(2)— 
Benefit obligation at end of year3,811 4,341 669 709 
Change in Plan Assets
Fair value of plan assets at beginning of year4,193 3,803 — — 
Actual return on plan assets52 489 — — 
Employer contributions10 40 — — 
Currency and other(45)120 — — 
Benefit payments(138)(169)— — 
Settlements(328)(90)— — 
Fair value of plan assets at end of year3,744 4,193 — — 
Funded Status$(67)$(148)$(669)$(709)
(a) The actuarial net gains in 2021 and actuarial net losses in 2020 were primarily due to discount rate increases and decreases, respectively.
Substantially all of the funded status of pension and other benefits is recognized in the consolidated balance sheet in Noncurrent Employee Benefits, with the remainder recognized in Accrued expenses and other current liabilities and Other Assets. 
Information for the Principal Plans and All Other Pension Plans
Principal PlansAll Other
Pension Plans		Total
Year Ended December 31
202120202021202020212020
Projected benefit obligation (“PBO”)$3,339 $3,629 $472 $712 $3,811 $4,341 
Accumulated benefit obligation (“ABO”)3,339 3,629 408 619 3,747 4,248 
Fair value of plan assets3,389 3,627 355 566 3,744 4,193 
Approximately one-half of the PBO and fair value of plan assets for the Principal Plans relate to the U.S. qualified and nonqualified pension plans.
Information for Pension Plans with an ABO in Excess of Plan Assets
December 31
20212020
ABO$1,788 $311 
Fair value of plan assets1,616 119 
Information for Pension Plans with a PBO in Excess of Plan Assets
December 31
20212020
PBO$1,835 $744 
Fair value of plan assets1,648 529 
Components of Net Periodic Benefit Cost
Pension BenefitsOther Benefits
Year Ended December 31
202120202019202120202019
Service cost$21 $22 $21 $8 $8 $8 
Interest cost80 95 121 19 23 28 
Expected return on plan assets(a)
(132)(134)(144)— — — 
Recognized net actuarial loss37 42 44 1 1 — 
Settlements and curtailments
89 49 45 — — — 
Other
(5)(4)(4)(2)(2)(1)
Net periodic benefit cost$90 $70 $83 $26 $30 $35 
(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.
The components of net periodic benefit cost other than the service cost component are included in the line item Nonoperating expense in our consolidated income statement.
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31
Pension BenefitsOther Benefits
Projected 2022202120202019202120202019
Discount rate2.36 %1.98 %2.44 %3.40 %2.69 %3.51 %4.50 %
Expected long-term return on plan assets3.52 %3.41 %3.66 %4.39 %— — — 
Rate of compensation increase3.23 %3.07 %3.08 %3.08 %— — — 

Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31
Pension BenefitsOther Benefits
2021202020212020
Discount rate2.36 %1.93 %3.15 %2.69 %
Rate of compensation increase3.23 %3.07 %— — 
Investment Strategies for the Principal Plans
Strategic asset allocation decisions are made considering several risk factors, including plan participants' retirement benefit security, the estimated payments of the associated liabilities, the plan funded 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 geographies and market capitalization. Fixed income investments are diversified across multiple sectors including government issues and corporate debt instruments 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. Our 2022 target plan asset allocation for the Principal Plans is approximately 85 percent fixed income securities and 15 percent equity securities.
The expected long-term rate of return is generally evaluated on an annual basis. In setting this assumption, we consider a number of factors including projected future returns by asset class relative to the current asset allocation. The weighted-average expected long-term rate of return on pension fund assets used to calculate pension expense for the Principal Plans was 3.51 percent in 2021, 3.76 percent in 2020 and 4.59 percent in 2019, and will be 3.55 percent in 2022.
Set forth below are the pension plan assets of the Principal Plans measured at fair value, by level in the fair-value hierarchy. More than 70 percent of the assets are held in pooled funds and are measured using a net asset value (or its equivalent). Accordingly, such assets do not meet the Level 1, Level 2, or Level 3 criteria of the fair value hierarchy.
Fair Value Measurements at December 31, 2021
Total
Plan Assets		Assets at Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Assets at Significant
Observable
Inputs
(Level 2)		Assets at Significant
Unobservable
Inputs
(Level 3)
Cash and Cash Equivalents
Held directly$50 $50 $— $— 
Held through mutual and pooled funds measured at net asset value26 — — — 
Fixed Income
Held directly
U.S. government and municipals166 158 8 — 
U.S. corporate debt293 7 286 — 
International bonds43 — 43 — 
Held through mutual and pooled funds measured at net asset value
U.S. government and municipals149 — — — 
U.S. corporate debt646 — — — 
International bonds1,144 — — — 
Equity
Held directly
U.S. equity17 17 — — 
International equity32 32 — — 
Held through mutual and pooled funds measured at net asset value
Non-U.S. equity46 — — — 
Global equity423 — — — 
Insurance Contracts355 — — 355 
Other(1)1 — — 
Total Plan Assets$3,389 $265 $337 $355 
Futures contracts are used when appropriate to manage duration targets.  As of December 31, 2021 and 2020, the U.S. plan held directly Treasury futures contracts with a total notional value of approximately $377 and $396, respectively, and an insignificant fair value. As of December 31, 2021 and 2020, the United Kingdom plan held through a pooled fund future contracts with a total notional value of approximately $403 and $454, and an insignificant fair value.
During 2021 and 2020, the plan assets did not include a significant amount of Kimberly-Clark common stock.
Fair Value Measurements at December 31, 2020
Total
Plan Assets		Assets at Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Assets at Significant
Observable
Inputs
(Level 2)		Assets at Significant
Unobservable
Inputs
(Level 3)
Cash and Cash Equivalents
Held directly$56 $56 $— $— 
Held through mutual and pooled funds measured at net asset value15 — — — 
Fixed Income
Held directly
U.S. government and municipals191 171 20 — 
U.S. corporate debt310 — 310 — 
International bonds42 — 42 — 
Held through mutual and pooled funds measured at net asset value
U.S. government and municipals167 — — — 
U.S. corporate debt730 — — — 
International bonds1,062 — — — 
Equity
Held directly
U.S. equity
18 18 — — 
International equity31 31 — — 
Held through mutual and pooled funds measured at net asset value
Non-U.S. equity107 — — — 
Global equity517 — — — 
Insurance Contracts380 — — 380 
Other1 1 — — 
Total Plan Assets$3,627 $277 $372 $380 
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. government securities are determined based on trading activity in the marketplace.
Fair values of U.S. corporate debt, U.S. municipals 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 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. The fair value of pooled funds is determined by the value of the underlying assets held by the fund and the units outstanding.
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, 2021, there were no significant concentrations of equity or debt securities in any single issuer or industry.
No level 3 transfers (in or out) were made in 2021 or 2020. Fair values of insurance contracts are based on an evaluation of various factors, including purchase price.
We expect to contribute approximately $25 to our defined benefit pension plans in 2022. Over the next ten years, we expect that the following gross benefit payments will occur:
Pension BenefitsOther Benefits
2022$196 $61 
2023199 62 
2024206 61 
2025203 58 
2026205 54 
2027-20311,004 236 
Defined Contribution Pension Plans
Our 401(k) profit sharing plan and supplemental plan provide for a matching contribution of a U.S. employee's contributions and accruals, subject to predetermined limits, as well as a discretionary profit sharing contribution, in which contributions will be based on our profit performance. We also have defined contribution pension plans for certain employees outside the U.S. Costs charged to expense for our defined contribution pension plans were $116 in 2021, $141 in 2020, and $131 in 2019. Approximately 35 percent of these costs were for plans outside the U.S.