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(a) Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at...

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(a) Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less.
Cash equivalents are recorded at cost, which approximates fair value.
(b) Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of
greater than one year, included in other current assets or other assets in the Consolidated Balance Sheet, as appropriate. Time deposits are recorded at cost,
which approximates fair value.
(c) Short-term debt is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at
cost, which approximates fair value.
(d) Long-term debt includes the current portion of these debt instruments. Fair values were estimated based on quoted prices for financial instruments for which
all significant inputs were observable, either directly or indirectly.
(e) The redeemable securities of subsidiaries are not traded in active markets. For certain instruments, fair values were calculated using a floating rate pricing
model that compared the stated spread to the fair value spread to determine the price at which each of the financial instruments should trade. The model
used the following inputs to calculate fair values: face value, current LIBOR rate, unobservable fair value credit spread, stated spread, maturity date and
interest or dividend payment dates. Additionally, the fair value of the remaining redeemable securities was based on various inputs, including an independent
third-party appraisal, adjusted for current market conditions.
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA   KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT Year Ended December 31 (Millions of dollars, except per share amounts XXXXXXXXXX Net Sales ................................................................................................................ $ 19,724 $ 19,561 $ 19,467 Cost of products sold.................................................................... XXXXXXXXXX13,041 12,952 13,338 Gross Profit........................................................................................ XXXXXXXXXX6,683 6,609 6,129 Marketing, research and general expenses................................... XXXXXXXXXX3,709 3,699 3,757 Other (income) and expense, net.................................................. XXXXXXXXXX XXXXXXXXXX) Operating Profit ................................................................................ XXXXXXXXXX2,521 2,903 2,377 Interest income............................................................................. XXXXXXXXXX XXXXXXXXXX Interest expense............................................................................. XXXXXXXXXX XXXXXXXXXX) Income From Continuing Operations Before Income Taxes and Equity Interests .......................................................................................... XXXXXXXXXX2,255 2,641 2,110 Provision for income taxes............................................................ XXXXXXXXXX XXXXXXXXXX) Income From Continuing Operations Before Equity Interests..... XXXXXXXXXX1,399 1,813 1,450 Share of net income of equity companies .................................... XXXXXXXXXX XXXXXXXXXX Income From Continuing Operations ............................................. XXXXXXXXXX1,545 2,018 1,627 Income from discontinued operations, net of income taxes......... XXXXXXXXXX XXXXXXXXXX Net...

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Answered Same Day Dec 27, 2021

Solution

Robert answered on Dec 27 2021
116 Votes
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Pensions
1. What is the funded status of Kimberly-Clark’s Pension Benefits plans at the end of 2014:
overfunded or underfunded and by what amount? Where is the funded status displayed on
the balance sheet?
Answer:
Kimberly-Clark’s Pension Benefits plan at the end of 2014 It is under funded by
$946,000, because an asset is less than obligation.
It is displayed in NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
Under Note 11. Employee Postretirement Benefits
2. What amount did Kimberly-Clark retirees receive pursuant to defined benefit pensions in
2014?
Answer :
$ 356,000
The amount which is in Note 11. Employee Postretirement Benefits as retiree paid.
3. What amount of pension expense did Kimberly-Clark recognize in 2014?
Answe
$ 110,000 which comes under Defined Contribution Pension Plans in notes section.
3
4. What amount did Kimberly-Clark’s cu
ent employees earn for services provided in 2014?

Answer
$46,000 which is comes under Components of Net Periodic Benefit Cost as service cost
5. Did Kimberly-Clark earn more or less than expected on its plan assets in 2014? By what
amount?
Answer Kimberly-Clark earned more than expected on its plan assets in 2014,
Actual return on plan assets= $694,000
Expected return on plan assets =$ 332,000
Earn more than expected plan assets =$362,000
6. If Kimberly-Clark had used its actual return on plan assets to determine its pension expense,
what would pension expense have been in 2014?
Answer No, Kimberly-Clark not used actual return on plan assets, because company used
expected return on plan assets to determine its pension expense to reduce pension expense.
7. What impact did the change in discount rate have on the 2014 Projected Benefit Obligation
(PBO)?
Answer:
Higher discount rate decrease...
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