Kimberly-Clark Corp., Dallas, plans to move to a more conservative target asset allocation for its global defined benefits plans this year, raising fixed income to 70% and lowering equity to 30%, according to the company's 10-K filing released Friday.
Its actual allocation was 64.5% fixed income, 35% equity and 0.5% insurance contracts as of Dec. 31.
The company expects to contribute between $100 million and $200 million to its worldwide defined benefit plans this year, according to the 10-K. Kimberly-Clark contributed $220 million last year.
Worldwide defined benefit plan assets increased 3.5% to $5.57 billion in the year ended Dec. 31, while projected benefit obligations fell 6.4% to $6.16 billion, for a 90% funding ratio.
The company lowered its actuarial assumed rate of return for 2014 to 6.16% from 6.43% last year. It raised its discount rate for valuing pension obligations to 4.76% as of Dec. 31 from 4.12% a year earlier.
Kimberly-Clark's $268 million actual return on plan assets last year fell short of the $331 million it expected. It did not provide a percentage rate for the actual return.
The company last year contributed $117 million to its worldwide defined contribution plans, including $90 million to its U.S.-based 401(k) and profit-sharing plan, which had $2.8 billion in assets.
Charles Ballard, director-asset management, couldn't be reached for comment.