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 5.8 percent in 2020 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 $46 and $110 and curtailment gains of $1 and curtailment charges of $17 were recognized in Nonoperating expense during 2019 and 2018, respectively, primarily related to the defined benefit pension plans in the U.S., United Kingdom and Canada (see Note 2 for further information about the 2018 Global Restructuring Program).



	Pension Benefits						Other Benefits
	Year Ended December 31
	2019			2018			2019			2018
Change in Benefit Obligation
Benefit obligation at beginning of year	$	3,687		$	4,296		$	673		$	765
Service cost	21			36			8			11
Interest cost	121			128			28			28
Actuarial (gain) loss^(a)	446			(256		)	36			(79		)
Currency and other	51			(96		)	—			(5		)
Benefit payments from plans	(142		)	(198		)	—			—
Direct benefit payments	(10		)	(8		)	(52		)	(48		)
Settlements and curtailments	(127		)	(215		)	—			1
Benefit obligation at end of year	4,047			3,687			693			673
Change in Plan Assets
Fair value of plan assets at beginning of year	3,398			3,897			—			—
Actual return on plan assets	572			(132		)	—			—
Employer contributions	50			166			—			—
Currency and other	51			(116		)	—			—
Benefit payments	(142		)	(198		)	—			—
Settlements	(126		)	(219		)	—			—
Fair value of plan assets at end of year	3,803			3,398			—			—
Funded Status	$	(244	)	$	(289	)	$	(693	)	$	(673	)

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.



	Principal Plans				All Other Pension Plans				Total
	Year Ended December 31
	2019		2018		2019		2018		2019		2018
Projected benefit obligation (“PBO”)	$	3,406	$	3,094	$	641	$	593	$	4,047	$	3,687
Accumulated benefit obligation (“ABO”)	3,406		3,094		561		521		3,967		3,615
Fair value of plan assets	3,303		2,936		500		462		3,803		3,398



	Pension Benefits									Other Benefits
	Year Ended December 31
	2019			2018			2017			2019			2018			2017
Service cost	$	21		$	36		$	41		$	8		$	11		$	12
Interest cost	121			128			129			28			28			32
Expected return on plan assets^(a)	(144		)	(166		)	(156		)	—			—			—
Recognized net actuarial loss	44			47			57			—			1			1
Settlements and curtailments	45			136			7			—			—			—
Other	(4		)	(7		)	(9		)	(1		)	(3		)	(2		)
Net periodic benefit cost	$	83		$	174		$	69		$	35		$	37		$	43



	Pension Benefits								Other Benefits
	Projected 2020		2019		2018		2017		2019		2018		2017
Discount rate	2.51	%	3.40	%	3.23	%	3.19	%	4.50	%	3.91	%	4.29	%
Expected long-term return on plan assets	3.66	%	4.39	%	4.50	%	4.46	%	—		—		—
Rate of compensation increase	3.08	%	3.08	%	2.27	%	2.29	%	—		—		—

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 2020 target plan asset allocation for the Principal Plans is approximately 80 percent fixed income securities and 20 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 4.59 percent in 2019, 4.75 percent in 2018 and 4.72 percent in 2017, and will be 3.76 percent in 2020.

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, 2019
	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	$	44		$	44		$	—	$	—
Held through mutual and pooled funds measured at net asset value	31			—			—		—
Fixed Income
Held directly
U.S. government and municipals	161			147			14		—
U.S. corporate debt	221			—			221		—
International bonds	9			—			9		—
Held through mutual and pooled funds measured at net asset value
U.S. government and municipals	586			—			—		—
U.S. corporate debt	662			—			—		—
International bonds	504			—			—		—
Equity
Held directly
U.S. equity	39			39			—		—
International equity	32			32			—		—
Held through mutual and pooled funds measured at net asset value
Non-U.S. equity	86			—			—		—
Global equity	572			—			—		—
Insurance Contracts	372			—			—		372
Other	(16		)	(4		)	—		—
Total Plan Assets	$	3,303		$	258		$	244	$	372

Futures contracts are used when appropriate to manage duration targets. As of December 31, 2019 and 2018, the U.S. plan held directly Treasury futures contracts with a total notional value of approximately $345 and $281, respectively, and an insignificant fair value. As of December 31, 2019 and 2018, the United Kingdom plan held through a pooled fund future contracts with a total notional value of approximately $346 and $287, and an insignificant fair value.



	Fair Value Measurements at December 31, 2018
	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	$	15	$	15	$	—	$	—
Held through mutual and pooled funds measured at net asset value	45		—		—		—
Fixed Income
Held directly
U.S. government and municipals	161		145		16		—
U.S. corporate debt	196		—		196		—
International bonds	13		—		13		—
Held through mutual and pooled funds measured at net asset value
U.S. government and municipals	479		—		—		—
U.S. corporate debt	593		—		—		—
International bonds	494		—		—		—
Equity
Held directly
U.S. equity	30		30		—		—
International equity	31		31		—		—
Held through mutual and pooled funds measured at net asset value
Non-U.S. equity	73		—		—		—
Global equity	448		—		—		—
Insurance Contracts	347		—		—		347
Other	11		9		—		—
Total Plan Assets	$	2,936	$	230	$	225	$	347

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, 2019, there were no significant concentrations of equity or debt securities in any single issuer or industry.

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 $131 in 2019, $120 in 2018, and $128 in 2017. Approximately 30 percent of these costs were for plans outside the U.S.