Employee Postretirement Benefits

12 Months Ended

Dec. 31, 2013

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Employee Postretirement Benefits

Employee Postretirement Benefits

Pension Plans

Substantially all regular employees in North America and the United Kingdom are covered by defined benefit pension plans (the "Principal Plans") and/or defined contribution retirement 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.

Other Postretirement Benefit Plans

Substantially all U.S. retirees and employees have access to our unfunded healthcare and life insurance benefit plans. The annual increase in the consolidated weighted-average healthcare cost trend rate is expected to be 6.2 percent in 2014 and to decline to 5.0 percent in 2022 and thereafter. Assumed healthcare cost trend rates affect the amounts reported for postretirement healthcare benefit plans. A one-percentage-point change in assumed healthcare trend rates would not have a significant effect.

Summarized financial information about postretirement plans, excluding defined contribution retirement plans, is presented below:

	Pension Benefits						Other Benefits
	Year Ended December 31
	2013			2012			2013			2012
Change in Benefit Obligation
Benefit obligation at beginning of year	$	6,590		$	5,920		$	824		$	788
Service cost	53			45			17			15
Interest cost	257			279			32			36
Actuarial loss (gain)	(422		)	854			(60		)	37
Currency and other	47			79			—			3
Benefit payments from plans	(343		)	(478		)	—			—
Direct benefit payments	(13		)	(14		)	(52		)	(55		)
Curtailment and settlements	(5		)	(95		)	—			—
Benefit obligation at end of year	6,164			6,590			761			824
Change in Plan Assets
Fair value of plan assets at beginning of year	5,375			5,214			—			—
Actual return on plan assets	268			556			—			—
Employer contributions	220			110			—			—
Currency and other	47			60			—			—
Benefit payments	(343		)	(478		)	—			—
Settlements	—			(87		)	—			—
Fair value of plan assets at end of year	5,567			5,375			—			—
Funded Status	$	(597	)	$	(1,215	)	$	(761	)	$	(824	)
Amounts Recognized in the Balance Sheet
Noncurrent asset—prepaid benefit cost	$	9		$	8		$	—		$	—
Current liability—accrued benefit cost	(12		)	(12		)	(56		)	(56		)
Noncurrent liability—accrued benefit cost	(594		)	(1,211		)	(705		)	(768		)
Net amount recognized	$	(597	)	$	(1,215	)	$	(761	)	$	(824	)

During 2012, we offered a lump-sum distribution to certain participants in our U.S. plan. Included in pension benefit payments from plans in 2012 is $116 related to participants electing the lump-sum option, which was not sufficient to trigger a settlement charge for our U.S. plan.

Information for the Principal Plans and All Other Pension Plans

	Principal Plans				All Other Pension Plans				Total
	Year Ended December 31
	2013		2012		2013		2012		2013		2012
Projected benefit obligation (“PBO”)	$	5,640	$	6,071	$	524	$	519	$	6,164	$	6,590
Accumulated benefit obligation (“ABO”)	5,555		6,049		439		420		5,994		6,469
Fair value of plan assets	5,205		5,063		362		312		5,567		5,375

The PBO and fair value of plan assets for the Principal Plans include $3,866 and $3,565, respectively, related to the U.S. qualified and nonqualified pension plans as of December 31, 2013. The PBO and fair value of plan assets for the Principal Plans include $4,375 and $3,553, respectively, related to the U.S. qualified and nonqualified pension plans as of December 31, 2012.

Information for Pension Plans with an ABO in Excess of Plan Assets

	December 31
	2013		2012
PBO	$	5,722	$	6,558
ABO	5,622		6,440
Fair value of plan assets	5,163		5,335

Components of Net Periodic Benefit Cost

	Pension Benefits									Other Benefits
	Year Ended December 31
	2013			2012			2011			2013			2012			2011
Service cost	$	53		$	45		$	57		$	17		$	15		$	14
Interest cost	257			279			307			32			36			41
Expected return on plan assets(a)	(331		)	(329		)	(345		)	—			—			—
Recognized net actuarial loss	120			111			94			3			1			—
Curtailment and settlements	(31		)	20			—			—			—			—
Other	1			(4		)	6			(2		)	(1		)	1
Net periodic benefit cost	$	69		$	122		$	119		$	50		$	51		$	56

^(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, and 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
	2013		2012		2011		2013		2012		2011
Discount rate	4.04	%	4.87	%	5.51	%	3.97	%	4.70	%	5.44	%
Expected long-term return on plan assets	6.26	%	6.49	%	7.14	%	—		—		—
Rate of compensation increase	2.73	%	2.91	%	4.05	%	—		—		—

Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31

	Pension Benefits				Other Benefits
	2013		2012		2013		2012
Discount rate	4.66	%	4.04	%	4.97	%	3.97	%
Rate of compensation increase	2.67	%	2.73	%	—		—

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 2014 target plan asset allocation for the Principal Plans is 70 percent fixed income securities and 30 percent equity securities.

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 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 6.43 percent in 2013 compared with 6.68 percent in 2012 and will be 6.16 percent in 2014.

Set forth below are the pension plan assets of the Principal Plans measured at fair value, by level in the fair-value hierarchy:

	Fair Value Measurements at December 31, 2013
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and Cash Equivalents
Held directly	$	33	$	33	$	—	$	—
Held through mutual and pooled funds	173		34		139		—
Fixed Income
Held directly
U.S. government and municipals	211		71		140		—
U.S. corporate debt	1,654		—		1,654		—
U.S. securitized fixed income	8		—		8		—
Held through mutual and pooled funds
U.S. corporate debt	186		—		186		—
International bonds	1,089		—		1,089		—
Multi-sector	2		2		—		—
Equity
Held directly
U.S. equity	1		1		—		—
Held through mutual and pooled funds
U.S. equity	4		4		—		—
Non-U.S. equity	123		1		122		—
Global equity	1,691		—		1,691		—
Insurance Contract	30		—		—		30
Total Plan Assets	$	5,205	$	146	$	5,029	$	30

	Fair Value Measurements at December 31, 2012
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and Cash Equivalents
Held directly	$	23	$	23	$	—	$	—
Held through mutual and pooled funds	143		—		143		—
Fixed Income
Held directly
U.S. government and municipals	132		31		101		—
U.S. corporate debt	1,112		—		1,112		—
U.S. securitized fixed income	3		—		3		—
Held through mutual and pooled funds
U.S. government and municipals	490		—		490		—
U.S. corporate debt	199		—		199		—
International bonds	920		—		920		—
Multi-sector	2		2		—		—
Equity
Held directly
International equity	143		143		—		—
Held through mutual and pooled funds
U.S. equity	678		3		675		—
Non-U.S. equity	925		1		924		—
Global equity	293		—		293		—
Total Plan Assets	$	5,063	$	203	$	4,860	$	—

During 2013 and 2012, the plan assets did not include a significant amount of Kimberly-Clark common stock.

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. The fair value of pooled funds is determined by the value of the underlying assets held by the fund and the units outstanding. The value of the pooled fund is not directly observable, but is based on observable inputs.

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, 2013, there were no significant concentrations of equity or debt securities in any single issuer or industry.

The insurance contract was purchased in December 2013, and fair value was determined based on an evaluation of various factors, including purchase price. No other level 3 transfers (in or out) were made in 2013 and 2012.

Cash Flows

We expect to contribute $100 to $200 to our defined benefit pension plans in 2014.

Estimated Future Benefit Payments

Over the next ten years, we expect that the following gross benefit payments will occur:

	Pension Benefits		Other Benefits
2014	$	369	$	57
2015	374		59
2016	374		60
2017	382		61
2018	386		63
2019-2023	2,005		326

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 as follows:

	2013		2012		2011
U.S.	$	90	$	82	$	77
Outside the U.S.	27		26		36
Total	$	117	$	108	$	113