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x
|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
o
|
Transition Report Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
|
Delaware
|
1-225
|
39-0394230
|
(State or other jurisdiction of incorporation)
|
(Commission file number)
|
(I.R.S. Employer Identification No.)
|
|
|
|
P.O. Box 619100, Dallas, Texas
|
|
75261-9100
|
(Address of principal executive offices)
|
|
(Zip code)
|
Common Stock—$1.25 Par Value
|
|
New York Stock Exchange
|
(Title of each class)
|
|
(Name of each exchange on which registered)
|
Large accelerated filer
x
|
|
Accelerated filer
o
|
Non-accelerated filer
o
|
|
Smaller reporting company
o
|
|
|
Emerging growth company
o
|
|
|
Page
|
Part I
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
||
|
|
|
Part II
|
|
|
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
||
|
|
|
Part III
|
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
|
|
|
Part IV
|
|
|
Item 15.
|
||
Item 16.
|
||
|
|
|
|
|
KIMBERLY-CLARK CORPORATION -
2018 Annual Report
|
PART I
|
•
|
Personal Care
brands offer our consumers a trusted partner in caring for themselves and their families by delivering confidence, protection and discretion through a wide variety of innovative solutions and products such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products. Products in this segment are sold under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise and other brand names.
|
•
|
Consumer Tissue
offers a wide variety of innovative solutions and trusted brands that responsibly improve everyday living for families around the world. Products in this segment include facial and bathroom tissue, paper towels, napkins and related products, and are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve and other brand names.
|
•
|
K-C Professional
("KCP") partners with businesses to create Exceptional Workplaces, helping to make them healthier, safer and more productive through a range of solutions and supporting products such as wipers, tissue, towels, apparel, soaps and sanitizers. Our brands, including Kleenex, Scott, WypAll, Kimtech and KleenGuard are well known for quality and trusted to help people around the world work better.
|
|
1
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
2
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
3
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
•
|
Exposure to the movement of various currencies against each other and the U.S. dollar. A portion of the exposures, arising from transactions and commitments denominated in non-local currencies, is systematically managed through foreign currency forward and swap contracts where available and economically advantageous. We do not generally hedge our translation exposure with respect to foreign operations.
|
•
|
Increases in currency exchange restrictions. These restrictions could limit our ability to repatriate earnings from outside the U.S. or obtain currency exchange for U.S. dollar inputs to continue operating in certain countries.
|
•
|
Adverse political conditions. Risks related to political instability, expropriation, new or revised legal or regulatory constraints, difficulties in enforcing contractual and intellectual property rights, and potentially adverse tax consequences, including consequences from Brexit, could adversely affect our financial results.
|
•
|
Increases in dollar-based input costs for operations outside the U.S. due to weaker foreign exchange rates versus the U.S. dollar. There can be no assurance that we will be protected against substantial foreign currency fluctuations.
|
|
4
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
5
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
•
|
our principal executive office located in the Dallas, Texas metropolitan area;
|
•
|
four
operating segment and geographic headquarters at two U.S. and two international locations; and
|
•
|
five
global business service centers at one U.S. and four international locations.
|
Geographic Area
:
|
Number of
Facilities
|
|
North America (in 15 states in the U.S.)
|
31
|
|
Outside North America
|
58
|
|
Total (in 35 countries)
|
89
|
|
|
6
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
7
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
8
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
PART II
|
ITEM 5.
|
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Period (2018)
|
|
Total Number
of Shares
Purchased
(a)
|
|
Average
Price Paid
Per Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
|
Maximum Number
of Shares That May
Yet Be Purchased
Under the Plans or
Programs
|
|||||
October 1 to October 31
|
|
800,200
|
|
|
$
|
109.08
|
|
|
23,190,144
|
|
|
16,809,856
|
|
November 1 to November 30
|
|
546,200
|
|
|
110.33
|
|
|
23,736,344
|
|
|
16,263,656
|
|
|
December 1 to December 31
|
|
457,000
|
|
|
113.56
|
|
|
24,193,344
|
|
|
15,806,656
|
|
|
Total
|
|
1,803,400
|
|
|
|
|
|
|
|
(a)
|
Share repurchases were made pursuant to a share repurchase program authorized by our Board of Directors on November 13, 2014. This program allows for the repurchase of 40 million shares in an amount not to exceed $5 billion.
|
|
9
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
|
Year Ended December 31
|
||||||||||||||||||
|
2018
(a)
|
|
2017
(b)
|
|
2016
(c)
|
|
2015
(d)
|
|
2014
(e)
|
||||||||||
Net Sales
|
$
|
18,486
|
|
|
$
|
18,348
|
|
|
$
|
18,287
|
|
|
$
|
18,682
|
|
|
$
|
19,817
|
|
Gross Profit
|
5,597
|
|
|
6,587
|
|
|
6,691
|
|
|
6,667
|
|
|
6,752
|
|
|||||
Operating Profit
|
2,229
|
|
|
3,358
|
|
|
3,383
|
|
|
3,038
|
|
|
2,619
|
|
|||||
Share of Net Income of Equity Companies
|
103
|
|
|
104
|
|
|
132
|
|
|
149
|
|
|
146
|
|
|||||
Income from Continuing Operations
|
1,445
|
|
|
2,319
|
|
|
2,219
|
|
|
1,066
|
|
|
1,545
|
|
|||||
Income from Discontinued Operations, Net of Income Taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|||||
Net Income
|
1,445
|
|
|
2,319
|
|
|
2,219
|
|
|
1,066
|
|
|
1,595
|
|
|||||
Net Income Attributable to Noncontrolling Interests in Continuing Operations
|
(35
|
)
|
|
(41
|
)
|
|
(53
|
)
|
|
(53
|
)
|
|
(69
|
)
|
|||||
Net Income Attributable to Kimberly-Clark Corporation
|
1,410
|
|
|
2,278
|
|
|
2,166
|
|
|
1,013
|
|
|
1,526
|
|
|||||
Per Share Basis
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
4.05
|
|
|
6.44
|
|
|
6.03
|
|
|
2.78
|
|
|
3.94
|
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.13
|
|
|||||
Net income
|
4.05
|
|
|
6.44
|
|
|
6.03
|
|
|
2.78
|
|
|
4.07
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
4.03
|
|
|
6.40
|
|
|
5.99
|
|
|
2.77
|
|
|
3.91
|
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.13
|
|
|||||
Net income
|
4.03
|
|
|
6.40
|
|
|
5.99
|
|
|
2.77
|
|
|
4.04
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash Dividends
|
|
|
|
|
|
|
|
|
|
||||||||||
Declared
|
4.00
|
|
|
3.88
|
|
|
3.68
|
|
|
3.52
|
|
|
3.36
|
|
|||||
Paid
|
3.97
|
|
|
3.83
|
|
|
3.64
|
|
|
3.48
|
|
|
3.33
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets
|
14,518
|
|
|
15,151
|
|
|
14,602
|
|
|
14,842
|
|
|
15,526
|
|
|||||
Long-Term Debt
|
6,247
|
|
|
6,472
|
|
|
6,439
|
|
|
6,106
|
|
|
5,630
|
|
|||||
Total Stockholders' Equity
|
(46
|
)
|
|
882
|
|
|
117
|
|
|
40
|
|
|
999
|
|
(a)
|
Results include pre-tax charges of $1,036, $783 after tax, related to the 2018 Global Restructuring Program and a net charge of $117 associated with U.S. tax reform related matters. See Item 8, Notes
2
and
12
to the consolidated financial statements for details.
|
(b)
|
Results include other expense of $24 and an income tax benefit of $85 for U.S. tax reform related matters. See Item 8, Notes 5 and 12 to the consolidated financial statements for details.
|
(c)
|
Results include other income of
$11
related to an updated assessment of the deconsolidation of our Venezuelan operations. Additionally, results were negatively impacted by pre-tax charges of
$35
,
$27
after tax, related to the 2014 Organization Restructuring. See Item 8, Notes
1
and
3
to the consolidated financial statements for details.
|
(d)
|
Results include pre-tax charges related to pension settlements of
$1,358
,
$835
after tax, a
$45
nondeductible charge related to the remeasurement of the Venezuelan balance sheet and a pre-tax charge of
$108
, $102 after tax, related to the deconsolidation of our Venezuelan operations. Additionally, results were negatively impacted by pre-tax charges of
$63
,
$42
after tax, related to the 2014 Organization Restructuring, and nondeductible charges of
$23
related to the restructuring of operations in Turkey. Also included is an income tax charge of
$49
related to prior years as a result of an updated assessment of uncertain tax positions in certain of our international operations.
|
(e)
|
Results include pre-tax charges of
$133
,
$95
after tax, related to the 2014 Organization Restructuring, pre-tax charges of
$33
,
$30
after tax, related to European strategic changes, a nondeductible charge of
$462
related to the remeasurement of the Venezuelan balance sheet and a nondeductible charge of
$35
,
$17
attributable to Kimberly-Clark Corporation, related to a regulatory dispute in the Middle East. Additionally, results were negatively impacted by pre-tax charges of
$157
,
$138
after tax, for transaction and related costs associated with the spin-off of the health care business (classified in discontinued operations).
|
|
10
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
ITEM 7.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Overview of Business
|
•
|
Overview of
2018
Results
|
•
|
Results of Operations and Related Information
|
•
|
Unaudited Quarterly Data
|
•
|
Liquidity and Capital Resources
|
•
|
Critical Accounting Policies and Use of Estimates
|
•
|
Legal Matters
|
•
|
New Accounting Standards
|
•
|
Business Outlook
|
•
|
Information Concerning Forward-Looking Statements
|
•
|
2018 Global Restructuring Program - In 2018, we initiated a restructuring program to reduce our structural cost base by streamlining and simplifying our manufacturing supply chain and overhead organization. See Item 8,
Note 2
to the consolidated financial statements for details.
|
•
|
U.S. Tax Reform Related Matters - In 2018 and 2017, we recognized a net charge and a net benefit, respectively, associated with U.S. tax reform related matters. See Item 8,
Note 12
to the consolidated financial statements for details.
|
|
11
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
•
|
2014 Organization Restructuring - In 2014, we initiated a restructuring in order to improve organization efficiency and offset the impact of stranded overhead costs resulting from the 2014 spin-off of our health care business. As a result, we recognized restructuring charges in 2014, 2015 and 2016. Restructuring actions were completed by December 31, 2016. See Item 8,
Note 3
to the consolidated financial statements for details.
|
•
|
Adjustment Related to Venezuelan Operations - Results in 2016 include other income related to the deconsolidation of our Venezuelan operations. See Item 8,
Note 1
to the consolidated financial statements for details.
|
•
|
grow our portfolio of brands through innovation, category development and commercial execution,
|
•
|
leverage our cost and financial discipline to fund growth and improve margins, and
|
•
|
allocate capital in value-creating ways.
|
•
|
Net sales of $18.5 billion increased 1 percent compared to 2017. Organic sales growth of more than 1 percent was partially offset by unfavorable changes in foreign currency exchange rates.
|
•
|
In North America, organic sales increased 3 percent in K-C Professional and 1 percent in consumer products.
|
•
|
Outside North America, organic sales increased 2 percent in D&E Markets and 1 percent in Developed Markets.
|
•
|
Input cost inflation of $795 was partially offset by $375 in cost savings from our FORCE (Focused On Reducing Costs Everywhere) program and $135 in cost savings from the 2018 Global Restructuring Program.
|
•
|
Diluted earnings per share were $4.03 in 2018 compared to $6.40 in 2017, including charges from the 2018 Global Restructuring Program and U.S. tax reform related matters in 2018 and a net benefit from U.S. tax reform related matters in 2017.
|
•
|
We continue to focus on generating cash flow and allocating capital to shareholders. Cash provided by operations was $3.0 billion in 2018. We raised our dividend in 2018 by 3.1 percent, the 46th consecutive annual increase in our dividend. Altogether, share repurchases and dividends in 2018 amounted to $2.2 billion.
|
•
|
Net sales of $18.5 billion increased 1 percent compared to the prior year, as growth in organic sales of more than 1 percent was partially offset by unfavorable changes in foreign currency exchange rates.
|
•
|
Operating profit and Net Income Attributable to Kimberly-Clark Corporation were $2,229 and $1,410 in 2018 and $3,358 and $2,278 in 2017, respectively.
|
•
|
Diluted earnings per share were $4.03 in 2018 compared to $6.40 in 2017. Results in 2018 included charges from the 2018 Global Restructuring Program of $2.24 and a net charge of $0.33 for U.S. tax reform related matters. Results in 2017 included a net benefit of $0.17 from U.S. tax reform related matters.
|
|
12
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
Selected Financial Results
|
Year Ended December 31
|
||||||||||||||||
|
2018
|
|
2017
|
|
Change
2018 vs. 2017
|
|
2016
|
|
Change
2017 vs. 2016
|
||||||||
Net Sales:
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
9,532
|
|
|
$
|
9,437
|
|
|
+1
|
%
|
|
$
|
9,592
|
|
|
-2
|
%
|
Outside North America
|
9,256
|
|
|
9,228
|
|
|
—
|
|
|
9,002
|
|
|
+3
|
%
|
|||
Intergeographic sales
|
(302
|
)
|
|
(317
|
)
|
|
-5
|
%
|
|
(307
|
)
|
|
+3
|
%
|
|||
Total Net Sales
|
18,486
|
|
|
18,348
|
|
|
+1
|
%
|
|
18,287
|
|
|
—
|
|
|||
Operating Profit:
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
2,215
|
|
|
2,331
|
|
|
-5
|
%
|
|
2,372
|
|
|
-2
|
%
|
|||
Outside North America
|
1,127
|
|
|
1,299
|
|
|
-13
|
%
|
|
1,264
|
|
|
+3
|
%
|
|||
Corporate & Other
(a)
|
(1,112
|
)
|
|
(245
|
)
|
|
N.M.
|
|
|
(245
|
)
|
|
N.M.
|
|
|||
Other (income) and expense, net
(a)
|
1
|
|
|
27
|
|
|
-96
|
%
|
|
8
|
|
|
+238
|
%
|
|||
Total Operating Profit
|
2,229
|
|
|
3,358
|
|
|
-34
|
%
|
|
3,383
|
|
|
-1
|
%
|
|||
Provision for income taxes
|
(471
|
)
|
|
(776
|
)
|
|
-39
|
%
|
|
(922
|
)
|
|
-16
|
%
|
|||
Share of net income of equity companies
|
103
|
|
|
104
|
|
|
-1
|
%
|
|
132
|
|
|
-21
|
%
|
|||
Net Income Attributable to Kimberly-Clark Corporation
|
1,410
|
|
|
2,278
|
|
|
-38
|
%
|
|
2,166
|
|
|
+5
|
%
|
|||
Diluted Earnings per Share
|
4.03
|
|
|
6.40
|
|
|
-37
|
%
|
|
5.99
|
|
|
+7
|
%
|
(a)
|
Corporate & Other and Other (income) and expense, net includes income and expenses not associated with the business segments, including adjustments as indicated in the Non-GAAP Reconciliations.
|
|
|
Twelve Months Ended December 31, 2018
|
||||||||||||||
|
|
As
Reported
|
|
2018 Global Restructuring Program
|
|
U.S. Tax Reform Related Matters
|
|
As
Adjusted
Non-GAAP
|
||||||||
Cost of products sold
|
|
$
|
12,889
|
|
|
$
|
541
|
|
|
$
|
—
|
|
|
$
|
12,348
|
|
Gross Profit
|
|
5,597
|
|
|
(541
|
)
|
|
—
|
|
|
6,138
|
|
||||
Marketing, research and general expenses
|
|
3,367
|
|
|
380
|
|
|
—
|
|
|
2,987
|
|
||||
Other (income) and expense, net
|
|
1
|
|
|
(12
|
)
|
|
—
|
|
|
13
|
|
||||
Operating Profit
|
|
2,229
|
|
|
(909
|
)
|
|
—
|
|
|
3,138
|
|
||||
Nonoperating expense
|
|
(163
|
)
|
|
(127
|
)
|
|
—
|
|
|
(36
|
)
|
||||
Provision for income taxes
|
|
(471
|
)
|
|
243
|
|
|
(117
|
)
|
|
(597
|
)
|
||||
Effective tax rate
|
|
26.0
|
%
|
|
—
|
|
|
—
|
|
|
21.0
|
%
|
||||
Share of net income of equity companies
|
|
103
|
|
|
(1
|
)
|
|
—
|
|
|
104
|
|
||||
Net income attributable to noncontrolling interests
|
|
(35
|
)
|
|
11
|
|
|
—
|
|
|
(46
|
)
|
||||
Net Income Attributable to Kimberly-Clark Corporation
|
|
1,410
|
|
|
(783
|
)
|
|
(117
|
)
|
|
2,310
|
|
||||
Diluted Earnings per Share
(a)
|
|
4.03
|
|
|
(2.24
|
)
|
|
(0.33
|
)
|
|
6.61
|
|
(a)
|
"As Adjusted Non-GAAP" does not equal "As Reported" plus "Adjustments" as a result of rounding.
|
|
13
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
|
Twelve Months Ended December 31, 2017
|
||||||||||
|
|
As
Reported
|
|
U.S. Tax Reform Related Matters
|
|
As
Adjusted
Non-GAAP
|
||||||
Other (income) and expense, net
|
|
$
|
27
|
|
|
$
|
24
|
|
|
$
|
3
|
|
Operating Profit
|
|
3,358
|
|
|
(24
|
)
|
|
3,382
|
|
|||
Provision for income taxes
|
|
(776
|
)
|
|
85
|
|
|
(861
|
)
|
|||
Effective tax rate
|
|
25.9
|
%
|
|
—
|
|
|
28.6
|
%
|
|||
Net Income Attributable to Kimberly-Clark Corporation
|
|
2,278
|
|
|
61
|
|
|
2,217
|
|
|||
Diluted Earnings per Share
|
|
6.40
|
|
|
0.17
|
|
|
6.23
|
|
|
|
Twelve Months Ended December 31, 2016
|
||||||||||||||
|
|
As
Reported
|
|
Charges for 2014 Organization Restructuring
|
|
Adjustment Related to Venezuelan Operations
|
|
As
Adjusted
Non-GAAP
|
||||||||
Cost of products sold
|
|
$
|
11,596
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
11,590
|
|
Marketing, research and general expenses
|
|
3,300
|
|
|
32
|
|
|
—
|
|
|
3,268
|
|
||||
Other (income) and expense, net
|
|
8
|
|
|
(3
|
)
|
|
(11
|
)
|
|
22
|
|
||||
Operating Profit
|
|
3,383
|
|
|
(35
|
)
|
|
11
|
|
|
3,407
|
|
||||
Provision for income taxes
|
|
(922
|
)
|
|
8
|
|
|
—
|
|
|
(930
|
)
|
||||
Effective tax rate
|
|
30.6
|
%
|
|
—
|
|
|
—
|
|
|
30.7
|
%
|
||||
Net Income Attributable to Kimberly-Clark Corporation
|
|
2,166
|
|
|
(27
|
)
|
|
11
|
|
|
2,182
|
|
||||
Diluted Earnings per Share
|
|
5.99
|
|
|
(0.07
|
)
|
|
0.03
|
|
|
6.03
|
|
Net Sales
|
|
Percent Change
|
|
Adjusted Operating Profit
|
|
Percent Change
|
||||||||
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
|
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||
Volume
|
|
—
|
|
|
1
|
|
|
Volume
|
|
1
|
|
|
1
|
|
Net Price
|
|
—
|
|
|
(1
|
)
|
|
Net Price
|
|
3
|
|
|
(7
|
)
|
Mix/Other
|
|
1
|
|
|
—
|
|
|
Input Costs
|
|
(24
|
)
|
|
(10
|
)
|
Currency
|
|
(1
|
)
|
|
1
|
|
|
Cost Savings
(c)
|
|
15
|
|
|
13
|
|
Total
(a)
|
|
1
|
|
|
—
|
|
|
Currency Translation
|
|
—
|
|
|
1
|
|
|
|
|
|
|
|
Other
(d)
|
|
(2
|
)
|
|
1
|
|
||
Organic
(b)
|
|
1
|
|
|
—
|
|
|
Total
|
|
(7
|
)
|
|
(1
|
)
|
(a)
|
Total may not equal the sum of volume, net price, mix/other and currency due to rounding.
|
(b)
|
Combined impact of changes in volume, net price and mix/other.
|
(c)
|
Combined benefits of the FORCE program and 2018 Global Restructuring Program.
|
(d)
|
Includes impact of changes in product mix, marketing, research and general expenses, foreign currency transaction effects and other manufacturing costs.
|
|
14
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
15
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
Net Sales
|
|
$
|
9,037
|
|
|
$
|
9,078
|
|
|
$
|
9,046
|
|
|
Operating Profit
|
|
$
|
1,833
|
|
|
$
|
1,933
|
|
|
$
|
1,884
|
|
Net Sales
|
|
Percent Change
|
|
Operating Profit
|
|
Percent Change
|
||||||||
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
|
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||
Volume
|
|
1
|
|
|
1
|
|
|
Volume
|
|
2
|
|
|
2
|
|
Net Price
|
|
(1
|
)
|
|
(2
|
)
|
|
Net Price
|
|
(3
|
)
|
|
(9
|
)
|
Mix/Other
|
|
1
|
|
|
1
|
|
|
Input Costs
|
|
(14
|
)
|
|
(7
|
)
|
Currency
|
|
(2
|
)
|
|
1
|
|
|
Cost Savings
(c)
|
|
14
|
|
|
13
|
|
Total
(a)
|
|
—
|
|
|
—
|
|
|
Currency Translation
|
|
(1
|
)
|
|
1
|
|
|
|
|
|
|
|
Other
(d)
|
|
(3
|
)
|
|
3
|
|
||
Organic
(b)
|
|
1
|
|
|
(1
|
)
|
|
Total
|
|
(5
|
)
|
|
3
|
|
(a)
|
Total may not equal the sum of volume, net price, mix/other and currency due to rounding.
|
(b)
|
Combined impact of changes in volume, net price and mix/other.
|
(c)
|
Combined benefits of the FORCE program and 2018 Global Restructuring Program.
|
(d)
|
Includes impact of changes in product mix, marketing, research and general expenses, foreign currency transaction effects and other manufacturing costs.
|
|
16
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
Net Sales
|
|
$
|
6,015
|
|
|
$
|
5,932
|
|
|
$
|
5,967
|
|
|
Operating Profit
|
|
$
|
875
|
|
|
$
|
1,052
|
|
|
$
|
1,136
|
|
Net Sales
|
|
Percent Change
|
|
Operating Profit
|
|
Percent Change
|
||||||||
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
|
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
||||
Volume
|
|
(1
|
)
|
|
—
|
|
|
Volume
|
|
(3
|
)
|
|
(2
|
)
|
Net Price
|
|
2
|
|
|
(1
|
)
|
|
Net Price
|
|
12
|
|
|
(5
|
)
|
Mix/Other
|
|
—
|
|
|
—
|
|
|
Input Costs
|
|
(37
|
)
|
|
(13
|
)
|
Currency
|
|
—
|
|
|
1
|
|
|
Cost Savings
(c)
|
|
15
|
|
|
11
|
|
Total
(a)
|
|
1
|
|
|
(1
|
)
|
|
Currency Translation
|
|
1
|
|
|
—
|
|
|
|
|
|
|
|
Other
(d)
|
|
(5
|
)
|
|
2
|
|
||
Organic
(b)
|
|
1
|
|
|
(1
|
)
|
|
Total
|
|
(17
|
)
|
|
(7
|
)
|
(a)
|
Total may not equal the sum of volume, net price, mix/other and currency due to rounding.
|
(b)
|
Combined impact of changes in volume, net price and mix/other.
|
(c)
|
Combined benefits of the FORCE program and 2018 Global Restructuring Program.
|
(d)
|
Includes impact of changes in product mix, marketing, research and general expenses, foreign currency transaction effects and other manufacturing costs.
|
|
17
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
Net Sales
|
|
$
|
3,382
|
|
|
$
|
3,297
|
|
|
$
|
3,235
|
|
|
Operating Profit
|
|
$
|
634
|
|
|
$
|
645
|
|
|
$
|
616
|
|
Net Sales
|
|
Percent Change
|
|
Operating Profit
|
|
Percent Change
|
|||||||
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
|
|
|
2018 vs. 2017
|
|
2017 vs. 2016
|
|||
Volume
|
|
1
|
|
1
|
|
|
Volume
|
|
3
|
|
|
3
|
|
Net Price
|
|
1
|
|
(1
|
)
|
|
Net Price
|
|
3
|
|
|
(3
|
)
|
Mix/Other
|
|
1
|
|
1
|
|
|
Input Costs
|
|
(21
|
)
|
|
(12
|
)
|
Currency
|
|
—
|
|
1
|
|
|
Cost Savings
(c)
|
|
11
|
|
|
12
|
|
Total
(a)
|
|
3
|
|
2
|
|
|
Currency Translation
|
|
—
|
|
|
1
|
|
|
|
|
|
|
|
Other
(d)
|
|
2
|
|
|
4
|
|
|
Organic
(b)
|
|
3
|
|
1
|
|
|
Total
|
|
(2
|
)
|
|
5
|
|
(a)
|
Total may not equal the sum of volume, net price, mix/other and currency due to rounding.
|
(b)
|
Combined impact of changes in volume, net price and mix/other.
|
(c)
|
Combined benefits of the FORCE program and 2018 Global Restructuring Program.
|
(d)
|
Includes impact of changes in product mix, marketing, research and general expenses, foreign currency transaction effects and other manufacturing costs.
|
|
18
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
2018
(a)
|
|
2017
|
||||||||||||||||||||||||||||
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||||||||
Net Sales
|
$
|
4,569
|
|
|
$
|
4,582
|
|
|
$
|
4,604
|
|
|
$
|
4,731
|
|
|
$
|
4,603
|
|
|
$
|
4,665
|
|
|
$
|
4,576
|
|
|
$
|
4,504
|
|
Gross Profit
|
1,402
|
|
|
1,416
|
|
|
1,455
|
|
|
1,324
|
|
|
1,608
|
|
|
1,667
|
|
|
1,652
|
|
|
1,660
|
|
||||||||
Operating Profit
|
639
|
|
|
669
|
|
|
674
|
|
|
247
|
|
|
828
|
|
|
868
|
|
|
814
|
|
|
848
|
|
||||||||
Net Income
|
421
|
|
|
462
|
|
|
465
|
|
|
97
|
|
|
625
|
|
|
579
|
|
|
540
|
|
|
575
|
|
||||||||
Net Income Attributable to Kimberly-Clark Corporation
|
411
|
|
|
451
|
|
|
455
|
|
|
93
|
|
|
617
|
|
|
567
|
|
|
531
|
|
|
563
|
|
||||||||
Per Share Basis-Diluted
|
1.18
|
|
|
1.29
|
|
|
1.30
|
|
|
0.26
|
|
|
1.75
|
|
|
1.60
|
|
|
1.49
|
|
|
1.57
|
|
(a)
|
Quarterly results in 2018 were impacted by charges related to the 2018 Global Restructuring Program. See Item 8, Note 2 to the consolidated financial statements for details.
|
|
19
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Total
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024+
|
||||||||||||||
Long-term debt
|
$
|
6,973
|
|
|
$
|
716
|
|
|
$
|
758
|
|
|
$
|
256
|
|
|
$
|
304
|
|
|
$
|
464
|
|
|
$
|
4,475
|
|
Interest payments on long-term debt
|
3,063
|
|
|
222
|
|
|
209
|
|
|
191
|
|
|
183
|
|
|
177
|
|
|
2,081
|
|
|||||||
Operating leases
|
538
|
|
|
160
|
|
|
123
|
|
|
85
|
|
|
57
|
|
|
41
|
|
|
72
|
|
|||||||
Unconditional purchase obligations
|
1,238
|
|
|
841
|
|
|
161
|
|
|
37
|
|
|
38
|
|
|
38
|
|
|
123
|
|
|||||||
Open purchase orders
|
2,096
|
|
|
1,763
|
|
|
291
|
|
|
31
|
|
|
6
|
|
|
3
|
|
|
2
|
|
|||||||
Total contractual obligations
|
$
|
13,908
|
|
|
$
|
3,702
|
|
|
$
|
1,542
|
|
|
$
|
600
|
|
|
$
|
588
|
|
|
$
|
723
|
|
|
$
|
6,753
|
|
•
|
The unconditional purchase obligations are for the purchase of raw materials, primarily superabsorbent materials, pulp and utilities. Although we are primarily liable for payments on the above operating leases and unconditional purchase obligations, based on historic operating performance and forecasted future cash flows, we believe exposure to losses, if any, under these arrangements is not material.
|
•
|
The open purchase orders displayed in the table represent amounts for goods and services we have negotiated for delivery.
|
•
|
We will fund our defined benefit pension plans to meet or exceed statutory requirements and currently expect to contribute approximately
$25
to these plans in
2019
.
|
•
|
Other postretirement benefit payments are estimated using actuarial assumptions, including expected future service, to project the future obligations. Based upon those projections, we anticipate making annual payments for these obligations of approximately
$60
through
2028
.
|
•
|
Accrued income tax liabilities for uncertain tax positions, deferred taxes and noncontrolling interests.
|
|
20
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
•
|
Long-term rate of return on plan assets
. The expected long-term rate of return is evaluated on an annual basis. In setting these assumptions, we consider a number of factors including projected future returns by asset class relative to the target asset allocation. Actual asset allocations are regularly reviewed and they are periodically rebalanced to the targeted allocations when considered appropriate.
|
|
21
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
•
|
Discount rate
. The discount (or settlement) rate used to determine the present value of our future U.S. pension obligation at
December 31, 2018
was based on a portfolio of high quality corporate debt securities with cash flows that largely match the expected benefit payments of the plan. For the United Kingdom plan, the discount rate was determined based on yield curves constructed from a portfolio of high quality corporate debt securities. Each year's expected future benefit payments were discounted to their present value at the appropriate yield curve rate to determine the pension obligations. If the discount rate assumptions for these same plans were reduced by 0.25 percent, the increase in annual pension expense would not be material in
2019
, and the December 31, 2018 pension liability would increase by about
$115
.
|
•
|
Other assumptions
. There are a number of other assumptions involved in the calculation of pension expense and benefit obligations, primarily related to participant demographics and benefit elections.
|
•
|
Discount rate
. The determination of the discount rates used to calculate the benefit obligations of the plans is discussed in the pension benefit section above, and the methodology for each country is the same as the methodology used to determine the discount rate for that country's pension obligation. If the discount rate assumptions for these plans were reduced by 0.25 percent, the impact to
2019
other postretirement benefit expense and the increase in the December 31, 2018 benefit liability would not be material.
|
•
|
Health care cost trend rate
. The health care cost trend rate is based on a combination of inputs including our recent claims history and insights from external advisers regarding recent developments in the health care marketplace, as well as projections of future trends in the marketplace.
|
•
|
Deferred tax assets and related valuation allowances
. We have recorded deferred tax assets related to, among other matters, income tax loss carryforwards, income tax credit carryforwards and capital loss carryforwards and have established valuation allowances against these deferred tax assets. These carryforwards are primarily in non-U.S. taxing jurisdictions and in certain states in the U.S. Foreign tax credits earned in the U.S. in current and prior years, which cannot be used currently, also give rise to net deferred tax assets. In determining the valuation allowances to establish against these deferred tax assets, many factors are considered, including the specific taxing jurisdiction, the carryforward period, income tax strategies and forecasted earnings for the entities in each jurisdiction. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized.
|
•
|
Undistributed earnings
. As of December 31, 2018, we have accumulated undistributed earnings generated by our foreign subsidiaries of approximately
$8.4 billion
. Earnings of
$5.6 billion
were previously subject to tax, primarily due to the one-time transition tax on foreign earnings required by the Tax Act. Any additional taxes due with respect to such previously-taxed earnings, if repatriated, would generally be limited to foreign and U.S. state income taxes. Deferred taxes have been recorded for foreign and U.S. state income taxes on
$0.7 billion
of earnings of foreign consolidated subsidiaries expected to be repatriated. We do not intend to distribute the remaining
$4.9 billion
of previously-taxed
|
|
22
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
•
|
Uncertain tax positions
. We record our global tax provision based on the respective tax rules and regulations for the jurisdictions in which we operate. Where we believe that a tax position is supportable for income tax purposes, the item is included in our income tax returns. Where treatment of a position is uncertain, a liability is recorded based upon the expected most likely outcome taking into consideration the technical merits of the position based on specific tax regulations and facts of each matter. These liabilities may be affected by changing interpretations of laws, rulings by tax authorities or the expiration of the statute of limitations.
|
•
|
We expect net sales to decrease 1 to 2 percent. We anticipate changes in foreign currency exchange rates to have an unfavorable impact of 3 to 4 percent. Exited businesses in conjunction with the 2018 Global Restructuring Program are expected to reduce sales slightly, mostly in K-C Professional.
|
•
|
We expect organic sales to increase approximately 2 percent, driven by higher net selling prices of at least 3 percent.
|
•
|
We expect adjusted operating profit growth of 1 to 4 percent.
|
•
|
We plan to achieve cost savings of $400 to $450, including $300 to $325 from our FORCE program and $100 to $125 from the 2018 Global Restructuring Program.
|
•
|
We expect inflation in key cost inputs of $300 to $400. We anticipate the majority of the inflation to occur in international markets.
|
•
|
We expect foreign currency translation effects to reduce operating profit by 2 to 3 percent and transaction effects to also negatively impact the comparison.
|
•
|
We expect interest expense to increase somewhat year-on-year.
|
•
|
We expect an adjusted effective tax rate of 23 to 25 percent compared to 21 percent in 2018. At the mid-point, the higher rate is equivalent to an approximate 3
½
percent reduction in adjusted earnings per share.
|
•
|
We expect net income from equity companies to be similar year-on-year.
|
|
23
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
24
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
25
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
|
Year Ended December 31
|
||||||||||
(Millions of dollars, except per share amounts)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Sales
|
|
$
|
18,486
|
|
|
$
|
18,348
|
|
|
$
|
18,287
|
|
Cost of products sold
|
|
12,889
|
|
|
11,761
|
|
|
11,596
|
|
|||
Gross Profit
|
|
5,597
|
|
|
6,587
|
|
|
6,691
|
|
|||
Marketing, research and general expenses
|
|
3,367
|
|
|
3,202
|
|
|
3,300
|
|
|||
Other (income) and expense, net
|
|
1
|
|
|
27
|
|
|
8
|
|
|||
Operating Profit
|
|
2,229
|
|
|
3,358
|
|
|
3,383
|
|
|||
Nonoperating expense
|
|
(163
|
)
|
|
(59
|
)
|
|
(66
|
)
|
|||
Interest income
|
|
10
|
|
|
10
|
|
|
11
|
|
|||
Interest expense
|
|
(263
|
)
|
|
(318
|
)
|
|
(319
|
)
|
|||
Income Before Income Taxes and Equity Interests
|
|
1,813
|
|
|
2,991
|
|
|
3,009
|
|
|||
Provision for income taxes
|
|
(471
|
)
|
|
(776
|
)
|
|
(922
|
)
|
|||
Income Before Equity Interests
|
|
1,342
|
|
|
2,215
|
|
|
2,087
|
|
|||
Share of net income of equity companies
|
|
103
|
|
|
104
|
|
|
132
|
|
|||
Net Income
|
|
1,445
|
|
|
2,319
|
|
|
2,219
|
|
|||
Net income attributable to noncontrolling interests
|
|
(35
|
)
|
|
(41
|
)
|
|
(53
|
)
|
|||
Net Income Attributable to Kimberly-Clark Corporation
|
|
$
|
1,410
|
|
|
$
|
2,278
|
|
|
$
|
2,166
|
|
|
|
|
|
|
|
|
||||||
Per Share Basis
|
|
|
|
|
|
|
||||||
Net Income Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
4.05
|
|
|
$
|
6.44
|
|
|
$
|
6.03
|
|
Diluted
|
|
$
|
4.03
|
|
|
$
|
6.40
|
|
|
$
|
5.99
|
|
|
26
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
|
Year Ended December 31
|
||||||||||
(Millions of dollars)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Income
|
|
$
|
1,445
|
|
|
$
|
2,319
|
|
|
$
|
2,219
|
|
Other Comprehensive Income (Loss), Net of Tax
|
|
|
|
|
|
|
||||||
Unrealized currency translation adjustments
|
|
(428
|
)
|
|
517
|
|
|
(107
|
)
|
|||
Employee postretirement benefits
|
|
140
|
|
|
118
|
|
|
(113
|
)
|
|||
Other
|
|
51
|
|
|
(45
|
)
|
|
15
|
|
|||
Total Other Comprehensive Income (Loss), Net of Tax
|
|
(237
|
)
|
|
590
|
|
|
(205
|
)
|
|||
Comprehensive Income
|
|
1,208
|
|
|
2,909
|
|
|
2,014
|
|
|||
Comprehensive income attributable to noncontrolling interests
|
|
(22
|
)
|
|
(76
|
)
|
|
(44
|
)
|
|||
Comprehensive Income Attributable to Kimberly-Clark Corporation
|
|
$
|
1,186
|
|
|
$
|
2,833
|
|
|
$
|
1,970
|
|
|
27
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
|
December 31
|
||||||
(Millions of dollars)
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
||||
Current Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
539
|
|
|
$
|
616
|
|
Accounts receivable, net
|
|
2,164
|
|
|
2,315
|
|
||
Inventories
|
|
1,813
|
|
|
1,790
|
|
||
Other current assets
|
|
525
|
|
|
490
|
|
||
Total Current Assets
|
|
5,041
|
|
|
5,211
|
|
||
Property, Plant and Equipment, Net
|
|
7,159
|
|
|
7,436
|
|
||
Investments in Equity Companies
|
|
224
|
|
|
233
|
|
||
Goodwill
|
|
1,474
|
|
|
1,576
|
|
||
Other Assets
|
|
620
|
|
|
695
|
|
||
TOTAL ASSETS
|
|
$
|
14,518
|
|
|
$
|
15,151
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
||||
Current Liabilities
|
|
|
|
|
||||
Debt payable within one year
|
|
$
|
1,208
|
|
|
$
|
953
|
|
Trade accounts payable
|
|
3,190
|
|
|
2,834
|
|
||
Accrued expenses
|
|
1,793
|
|
|
1,730
|
|
||
Dividends payable
|
|
345
|
|
|
341
|
|
||
Total Current Liabilities
|
|
6,536
|
|
|
5,858
|
|
||
Long-Term Debt
|
|
6,247
|
|
|
6,472
|
|
||
Noncurrent Employee Benefits
|
|
931
|
|
|
1,184
|
|
||
Deferred Income Taxes
|
|
458
|
|
|
395
|
|
||
Other Liabilities
|
|
328
|
|
|
299
|
|
||
Redeemable Preferred Securities of Subsidiaries
|
|
64
|
|
|
61
|
|
||
Stockholders' Equity
|
|
|
|
|
||||
Kimberly-Clark Corporation
|
|
|
|
|
||||
Preferred stock - no par value - authorized 20.0 million shares, none issued
|
|
—
|
|
|
—
|
|
||
Common stock - $1.25 par value - authorized 1.2 billion shares;
issued 378.6 million shares at December 31, 2018 and 2017 |
|
473
|
|
|
473
|
|
||
Additional paid-in capital
|
|
548
|
|
|
594
|
|
||
Common stock held in treasury, at cost - 33.6 and 27.5 million
shares at December 31, 2018 and 2017, respectively |
|
(3,956
|
)
|
|
(3,288
|
)
|
||
Retained earnings
|
|
5,947
|
|
|
5,769
|
|
||
Accumulated other comprehensive income (loss)
|
|
(3,299
|
)
|
|
(2,919
|
)
|
||
Total Kimberly-Clark Corporation Stockholders' Equity
|
|
(287
|
)
|
|
629
|
|
||
Noncontrolling Interests
|
|
241
|
|
|
253
|
|
||
Total Stockholders' Equity
|
|
(46
|
)
|
|
882
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
14,518
|
|
|
$
|
15,151
|
|
|
28
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
(Millions of dollars, shares in thousands, except per share amounts)
|
|
Common Stock
Issued
|
|
Additional
Paid-in
Capital
|
|
Treasury Stock
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Noncontrolling
Interests
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||
Balance at December 31, 2015
|
|
378,597
|
|
|
$
|
473
|
|
|
$
|
601
|
|
|
17,737
|
|
|
$
|
(2,004
|
)
|
|
$
|
4,034
|
|
|
$
|
(3,278
|
)
|
|
$
|
214
|
|
Net income in stockholders' equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,166
|
|
|
—
|
|
|
49
|
|
||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(196
|
)
|
|
(8
|
)
|
||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(104
|
)
|
|
(1,906
|
)
|
|
211
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Income tax benefits on stock-based compensation
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Shares repurchased
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,198
|
|
|
(778
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Recognition of stock-based compensation
|
|
—
|
|
|
—
|
|
|
77
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Dividends declared ($3.68 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,322
|
)
|
|
—
|
|
|
(36
|
)
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||||
Balance at December 31, 2016
|
|
378,597
|
|
|
473
|
|
|
600
|
|
|
22,029
|
|
|
(2,571
|
)
|
|
4,870
|
|
|
(3,474
|
)
|
|
219
|
|
||||||
Net income in stockholders' equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,278
|
|
|
—
|
|
|
36
|
|
||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
555
|
|
|
35
|
|
||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(89
|
)
|
|
(1,926
|
)
|
|
210
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Shares repurchased
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,388
|
|
|
(927
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Recognition of stock-based compensation
|
|
—
|
|
|
—
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Dividends declared ($3.88 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,371
|
)
|
|
—
|
|
|
(37
|
)
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||||
Balance at December 31, 2017
|
|
378,597
|
|
|
473
|
|
|
594
|
|
|
27,491
|
|
|
(3,288
|
)
|
|
5,769
|
|
|
(2,919
|
)
|
|
253
|
|
||||||
Net income in stockholders' equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,410
|
|
|
—
|
|
|
31
|
|
||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(224
|
)
|
|
(12
|
)
|
||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
(1,351
|
)
|
|
152
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Shares repurchased
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,495
|
|
|
(820
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Recognition of stock-based compensation
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Dividends declared ($4.00 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,391
|
)
|
|
—
|
|
|
(32
|
)
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
159
|
|
|
(156
|
)
|
|
1
|
|
||||||
Balance at December 31, 2018
|
|
378,597
|
|
|
$
|
473
|
|
|
$
|
548
|
|
|
33,635
|
|
|
$
|
(3,956
|
)
|
|
$
|
5,947
|
|
|
$
|
(3,299
|
)
|
|
$
|
241
|
|
|
29
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
|
Year Ended December 31
|
||||||||||
(Millions of dollars)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Operating Activities
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
1,445
|
|
|
$
|
2,319
|
|
|
$
|
2,219
|
|
Depreciation and amortization
|
|
882
|
|
|
724
|
|
|
705
|
|
|||
Asset impairments
|
|
74
|
|
|
—
|
|
|
2
|
|
|||
Stock-based compensation
|
|
41
|
|
|
76
|
|
|
77
|
|
|||
Deferred income taxes
|
|
2
|
|
|
(69
|
)
|
|
(15
|
)
|
|||
Net losses on asset dispositions
|
|
52
|
|
|
21
|
|
|
6
|
|
|||
Equity companies' earnings (in excess of) less than dividends paid
|
|
18
|
|
|
26
|
|
|
(4
|
)
|
|||
Operating working capital
|
|
389
|
|
|
(148
|
)
|
|
334
|
|
|||
Postretirement benefits
|
|
(25
|
)
|
|
2
|
|
|
(50
|
)
|
|||
Other
|
|
92
|
|
|
(22
|
)
|
|
(42
|
)
|
|||
Cash Provided by Operations
|
|
2,970
|
|
|
2,929
|
|
|
3,232
|
|
|||
Investing Activities
|
|
|
|
|
|
|
||||||
Capital spending
|
|
(877
|
)
|
|
(785
|
)
|
|
(771
|
)
|
|||
Proceeds from dispositions of property
|
|
51
|
|
|
3
|
|
|
23
|
|
|||
Investments in time deposits
|
|
(353
|
)
|
|
(214
|
)
|
|
(221
|
)
|
|||
Maturities of time deposits
|
|
272
|
|
|
183
|
|
|
188
|
|
|||
Other
|
|
5
|
|
|
(38
|
)
|
|
49
|
|
|||
Cash Used for Investing
|
|
(902
|
)
|
|
(851
|
)
|
|
(732
|
)
|
|||
Financing Activities
|
|
|
|
|
|
|
||||||
Cash dividends paid
|
|
(1,386
|
)
|
|
(1,359
|
)
|
|
(1,311
|
)
|
|||
Change in short-term debt
|
|
(34
|
)
|
|
360
|
|
|
(908
|
)
|
|||
Debt proceeds
|
|
507
|
|
|
937
|
|
|
1,293
|
|
|||
Debt repayments
|
|
(407
|
)
|
|
(1,481
|
)
|
|
(598
|
)
|
|||
Proceeds from exercise of stock options
|
|
62
|
|
|
121
|
|
|
107
|
|
|||
Acquisitions of common stock for the treasury
|
|
(800
|
)
|
|
(911
|
)
|
|
(739
|
)
|
|||
Other
|
|
(57
|
)
|
|
(88
|
)
|
|
(29
|
)
|
|||
Cash Used for Financing
|
|
(2,115
|
)
|
|
(2,421
|
)
|
|
(2,185
|
)
|
|||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
(30
|
)
|
|
36
|
|
|
(11
|
)
|
|||
Change in Cash and Cash Equivalents
|
|
(77
|
)
|
|
(307
|
)
|
|
304
|
|
|||
Cash and Cash Equivalents - Beginning of Year
|
|
616
|
|
|
923
|
|
|
619
|
|
|||
Cash and Cash Equivalents - End of Year
|
|
$
|
539
|
|
|
$
|
616
|
|
|
$
|
923
|
|
|
30
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
31
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
32
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
33
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
34
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
35
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Twelve Months Ended December 31, 2018
|
||
Cost of products sold:
|
|
||
Charges for workforce reductions
|
$
|
149
|
|
Asset impairments
|
74
|
|
|
Asset write-offs
|
112
|
|
|
Incremental depreciation
|
172
|
|
|
Other exit costs
|
34
|
|
|
Total
|
541
|
|
|
Marketing, research and general expenses:
|
|
||
Charges for workforce reductions
|
243
|
|
|
Other exit costs
|
137
|
|
|
Total
|
380
|
|
|
Other (income) and expense, net
|
(12
|
)
|
|
Nonoperating expense
(a)
|
127
|
|
|
Total charges
|
1,036
|
|
|
Provision for income taxes
|
(243
|
)
|
|
Net charges
|
793
|
|
|
Net impact related to equity companies and noncontrolling interests
|
(10
|
)
|
|
Net charges attributable to Kimberly-Clark Corporation
|
$
|
783
|
|
(a)
|
Represents non-cash pension settlement and curtailment charges resulting from restructuring actions, primarily in the U.S., United Kingdom and Canada.
|
|
|
2018
|
||
Restructuring liabilities at January 1
|
|
$
|
—
|
|
Charges for workforce reductions and other cash exit costs
|
|
559
|
|
|
Cash payments
|
|
(325
|
)
|
|
Currency and other
|
|
(24
|
)
|
|
Restructuring liabilities at December 31
|
|
$
|
210
|
|
|
36
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
37
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Fair Value
Hierarchy
Level
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
(a)
|
1
|
|
$
|
539
|
|
|
$
|
539
|
|
|
$
|
616
|
|
|
$
|
616
|
|
Time deposits
(b)
|
1
|
|
256
|
|
|
256
|
|
|
185
|
|
|
185
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
Short-term debt
(c)
|
2
|
|
495
|
|
|
495
|
|
|
547
|
|
|
547
|
|
||||
Long-term debt
(d)
|
2
|
|
6,960
|
|
|
7,192
|
|
|
6,878
|
|
|
7,398
|
|
(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.
|
|
Weighted-
Average
Interest
Rate
|
|
Maturities
|
|
December 31
|
||||||
|
2018
|
|
2017
|
||||||||
Notes and debentures
|
3.3%
|
|
2019 - 2047
|
|
$
|
6,756
|
|
|
$
|
6,577
|
|
Industrial development revenue bonds
|
1.9%
|
|
2023 - 2045
|
|
169
|
|
|
264
|
|
||
Bank loans and other financings in various currencies
|
7.0%
|
|
2019 - 2025
|
|
35
|
|
|
37
|
|
||
Total long-term debt
|
|
|
|
|
6,960
|
|
|
6,878
|
|
||
Less current portion
|
|
|
|
|
713
|
|
|
406
|
|
||
Long-term portion
|
|
|
|
|
$
|
6,247
|
|
|
$
|
6,472
|
|
|
38
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Year Ended December 31
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Dividend yield
|
3.9
|
%
|
|
3.2
|
%
|
|
3.1
|
%
|
Volatility
|
20.8
|
%
|
|
15.6
|
%
|
|
16.0
|
%
|
Risk-free interest rate
|
2.8
|
%
|
|
1.8
|
%
|
|
1.2
|
%
|
Expected life - years
|
4.6
|
|
|
4.6
|
|
|
4.6
|
|
|
39
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
December 31, 2018
|
|
Weighted-Average
Service Years
|
||
Stock options
|
$
|
14
|
|
|
1.3
|
Restricted shares and time-vested restricted share units
|
3
|
|
|
1.4
|
|
Performance-based restricted share units
|
41
|
|
|
1.8
|
Stock Options
|
Shares
(in thousands)
|
|
Weighted-Average
Exercise Price
|
|
Weighted-Average
Remaining Contractual Term
|
|
Aggregate Intrinsic
Value
|
|||||
Outstanding at January 1, 2018
|
6,688
|
|
|
$
|
109.69
|
|
|
|
|
|
||
Granted
|
1,644
|
|
|
103.23
|
|
|
|
|
|
|||
Exercised
|
(748
|
)
|
|
82.83
|
|
|
|
|
|
|||
Forfeited or expired
|
(398
|
)
|
|
122.96
|
|
|
|
|
|
|||
Outstanding at December 31, 2018
|
7,186
|
|
|
110.27
|
|
|
6.43
|
|
$
|
68
|
|
|
Exercisable at December 31, 2018
|
4,384
|
|
|
106.96
|
|
|
4.97
|
|
$
|
51
|
|
|
Time-Vested
Restricted Share Units
|
|
Performance-Based
Restricted Share Units
|
||||||||||
Other Stock-Based Awards
|
Shares
(in thousands)
|
|
Weighted-
Average
Grant-Date
Fair Value
|
|
Shares
(in thousands)
|
|
Weighted-
Average
Grant-Date
Fair Value
|
||||||
Nonvested at January 1, 2018
|
102
|
|
|
$
|
123.19
|
|
|
1,562
|
|
|
$
|
123.97
|
|
Granted
|
54
|
|
|
107.14
|
|
|
796
|
|
|
106.65
|
|
||
Vested
|
(64
|
)
|
|
114.27
|
|
|
(607
|
)
|
|
113.99
|
|
||
Forfeited
|
(17
|
)
|
|
129.47
|
|
|
(186
|
)
|
|
121.07
|
|
||
Nonvested at December 31, 2018
|
75
|
|
|
117.99
|
|
|
1,565
|
|
|
119.37
|
|
|
40
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
|
Year Ended December 31
|
||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Change in Benefit Obligation
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
$
|
4,296
|
|
|
$
|
4,126
|
|
|
$
|
765
|
|
|
$
|
758
|
|
Service cost
|
36
|
|
|
41
|
|
|
11
|
|
|
12
|
|
||||
Interest cost
|
128
|
|
|
129
|
|
|
28
|
|
|
32
|
|
||||
Actuarial (gain) loss
(a)
|
(256
|
)
|
|
20
|
|
|
(79
|
)
|
|
16
|
|
||||
Currency and other
|
(96
|
)
|
|
221
|
|
|
(5
|
)
|
|
(3
|
)
|
||||
Benefit payments from plans
|
(198
|
)
|
|
(218
|
)
|
|
—
|
|
|
—
|
|
||||
Direct benefit payments
|
(8
|
)
|
|
(8
|
)
|
|
(48
|
)
|
|
(50
|
)
|
||||
Settlements and curtailments
|
(215
|
)
|
|
(15
|
)
|
|
1
|
|
|
—
|
|
||||
Benefit obligation at end of year
|
3,687
|
|
|
4,296
|
|
|
673
|
|
|
765
|
|
||||
Change in Plan Assets
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
3,897
|
|
|
3,534
|
|
|
—
|
|
|
—
|
|
||||
Actual return on plan assets
|
(132
|
)
|
|
333
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
166
|
|
|
53
|
|
|
—
|
|
|
—
|
|
||||
Currency and other
|
(116
|
)
|
|
204
|
|
|
—
|
|
|
—
|
|
||||
Benefit payments
|
(198
|
)
|
|
(218
|
)
|
|
—
|
|
|
—
|
|
||||
Settlements
|
(219
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
||||
Fair value of plan assets at end of year
|
3,398
|
|
|
3,897
|
|
|
—
|
|
|
—
|
|
||||
Funded Status
|
$
|
(289
|
)
|
|
$
|
(399
|
)
|
|
$
|
(673
|
)
|
|
$
|
(765
|
)
|
|
Principal Plans
|
|
All Other
Pension Plans
|
|
Total
|
||||||||||||||||||
|
Year Ended December 31
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
Projected benefit obligation (“PBO”)
|
$
|
3,094
|
|
|
$
|
3,567
|
|
|
$
|
593
|
|
|
$
|
729
|
|
|
$
|
3,687
|
|
|
$
|
4,296
|
|
Accumulated benefit obligation (“ABO”)
|
3,094
|
|
|
3,513
|
|
|
521
|
|
|
658
|
|
|
3,615
|
|
|
4,171
|
|
||||||
Fair value of plan assets
|
2,936
|
|
|
3,312
|
|
|
462
|
|
|
585
|
|
|
3,398
|
|
|
3,897
|
|
|
December 31
|
||||||
|
2018
|
|
2017
|
||||
ABO
|
$
|
1,826
|
|
|
$
|
2,134
|
|
Fair value of plan assets
|
1,547
|
|
|
1,699
|
|
|
41
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
December 31
|
||||||
|
2018
|
|
2017
|
||||
PBO
|
$
|
2,038
|
|
|
$
|
2,480
|
|
Fair value of plan assets
|
1,727
|
|
|
2,011
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||
|
Year Ended December 31
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
Service cost
|
$
|
36
|
|
|
$
|
41
|
|
|
$
|
42
|
|
|
$
|
11
|
|
|
$
|
12
|
|
|
$
|
11
|
|
Interest cost
|
128
|
|
|
129
|
|
|
148
|
|
|
28
|
|
|
32
|
|
|
33
|
|
||||||
Expected return on plan assets
(a)
|
(166
|
)
|
|
(156
|
)
|
|
(158
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Recognized net actuarial loss
|
47
|
|
|
57
|
|
|
52
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||
Settlements and curtailments
|
136
|
|
|
7
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
(7
|
)
|
|
(9
|
)
|
|
(9
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
(1
|
)
|
||||||
Net periodic benefit cost
|
$
|
174
|
|
|
$
|
69
|
|
|
$
|
76
|
|
|
$
|
37
|
|
|
$
|
43
|
|
|
$
|
43
|
|
(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.
|
|
Pension Benefits
|
|
Other Benefits
|
|||||||||||||||||
|
Projected 2019
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|||||||
Discount rate
|
3.40
|
%
|
|
3.23
|
%
|
|
3.19
|
%
|
|
3.91
|
%
|
|
3.91
|
%
|
|
4.29
|
%
|
|
4.59
|
%
|
Expected long-term return on plan assets
|
4.39
|
%
|
|
4.50
|
%
|
|
4.46
|
%
|
|
4.84
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
Rate of compensation increase
|
3.08
|
%
|
|
2.27
|
%
|
|
2.29
|
%
|
|
2.32
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Discount rate
|
3.40
|
%
|
|
3.10
|
%
|
|
4.50
|
%
|
|
3.91
|
%
|
Rate of compensation increase
|
3.08
|
%
|
|
2.27
|
%
|
|
—
|
|
|
—
|
|
|
42
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
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
|
|
|
43
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Fair Value Measurements at December 31, 2017
(a)
|
||||||||||
|
Total
Plan Assets
|
|
Assets at Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Assets at Significant
Unobservable
Inputs
(Level 3)
|
||||||
Cash and Cash Equivalents
|
|
|
|
|
|
||||||
Held directly
|
$
|
28
|
|
|
$
|
28
|
|
|
$
|
—
|
|
Held through mutual and pooled funds measured at net asset value
|
24
|
|
|
—
|
|
|
—
|
|
|||
Fixed Income
|
|
|
|
|
|
||||||
Held directly
|
|
|
|
|
|
||||||
U.S. government and municipals
|
522
|
|
|
522
|
|
|
—
|
|
|||
Held through mutual and pooled funds measured at net asset value
|
|
|
|
|
|
||||||
U.S. government and municipals
|
150
|
|
|
—
|
|
|
—
|
|
|||
U.S. corporate debt
|
686
|
|
|
—
|
|
|
—
|
|
|||
International bonds
|
665
|
|
|
—
|
|
|
—
|
|
|||
Equity
|
|
|
|
|
|
||||||
Held directly
|
|
|
|
|
|
||||||
U.S. equity
|
41
|
|
|
41
|
|
|
—
|
|
|||
International equity
|
47
|
|
|
47
|
|
|
—
|
|
|||
Held through mutual and pooled funds measured at net asset value
|
|
|
|
|
|
||||||
Non-U.S. equity
|
85
|
|
|
—
|
|
|
—
|
|
|||
Global equity
|
730
|
|
|
—
|
|
|
—
|
|
|||
Insurance Contracts
|
334
|
|
|
—
|
|
|
334
|
|
|||
Total Plan Assets
|
$
|
3,312
|
|
|
$
|
638
|
|
|
$
|
334
|
|
(a)
|
There were no plan assets measured at Level 2.
|
|
44
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Pension Benefits
|
|
Other Benefits
|
||||
2019
|
$
|
209
|
|
|
$
|
60
|
|
2020
|
219
|
|
|
62
|
|
||
2021
|
218
|
|
|
63
|
|
||
2022
|
224
|
|
|
64
|
|
||
2023
|
219
|
|
|
63
|
|
||
2024-2028
|
1,096
|
|
|
275
|
|
|
|
Unrealized Translation
|
|
Defined Benefit Pension Plans
|
|
Other Postretirement Benefit Plans
|
|
Cash Flow Hedges and Other
|
||||||||
Balance as of December 31, 2016
|
|
$
|
(2,351
|
)
|
|
$
|
(1,097
|
)
|
|
$
|
(31
|
)
|
|
$
|
5
|
|
Other comprehensive income (loss) before reclassifications
|
|
487
|
|
|
85
|
|
|
(7
|
)
|
|
(56
|
)
|
||||
(Income) loss reclassified from AOCI
|
|
—
|
|
|
36
|
|
(a)
|
(1
|
)
|
(a)
|
11
|
|
||||
Net current period other comprehensive income (loss)
|
|
487
|
|
|
121
|
|
|
(8
|
)
|
|
(45
|
)
|
||||
Balance as of December 31, 2017
|
|
(1,864
|
)
|
|
(976
|
)
|
|
(39
|
)
|
|
(40
|
)
|
||||
Other comprehensive income (loss) before reclassifications
|
|
(416
|
)
|
|
(51
|
)
|
|
58
|
|
|
42
|
|
||||
(Income) loss reclassified from AOCI
|
|
1
|
|
|
135
|
|
(a)
|
(2
|
)
|
(a)
|
9
|
|
||||
Net current period other comprehensive income (loss)
|
|
(415
|
)
|
|
84
|
|
|
56
|
|
|
51
|
|
||||
Tax effects reclassified from AOCI
|
|
(18
|
)
|
|
(125
|
)
|
|
(5
|
)
|
|
(8
|
)
|
||||
Balance as of December 31, 2018
|
|
$
|
(2,297
|
)
|
|
$
|
(1,017
|
)
|
|
$
|
12
|
|
|
$
|
3
|
|
(a)
|
Included in computation of net periodic pension and other postretirement benefits costs (see
Note 7
).
|
|
45
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Year Ended December 31
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Unrealized translation
|
$
|
(408
|
)
|
|
$
|
398
|
|
|
$
|
(88
|
)
|
Tax effect
(a)
|
(25
|
)
|
|
89
|
|
|
(11
|
)
|
|||
|
(433
|
)
|
|
487
|
|
|
(99
|
)
|
|||
|
|
|
|
|
|
||||||
Defined benefit pension plans
|
|
|
|
|
|
||||||
Unrecognized net actuarial loss and transition amount
|
|
|
|
|
|
||||||
Funded status recognition
|
(57
|
)
|
|
159
|
|
|
(230
|
)
|
|||
Amortization
|
47
|
|
|
56
|
|
|
52
|
|
|||
Settlements and curtailments
|
134
|
|
|
7
|
|
|
1
|
|
|||
Currency and other
|
29
|
|
|
(66
|
)
|
|
80
|
|
|||
|
153
|
|
|
156
|
|
|
(97
|
)
|
|||
Unrecognized prior service cost/credit
|
|
|
|
|
|
||||||
Funded status recognition
|
(22
|
)
|
|
2
|
|
|
(1
|
)
|
|||
Amortization
|
(8
|
)
|
|
(8
|
)
|
|
(8
|
)
|
|||
Curtailments
|
2
|
|
|
—
|
|
|
—
|
|
|||
Currency and other
|
(1
|
)
|
|
3
|
|
|
(6
|
)
|
|||
|
(29
|
)
|
|
(3
|
)
|
|
(15
|
)
|
|||
Tax effect
(a)
|
(165
|
)
|
|
(32
|
)
|
|
28
|
|
|||
|
(41
|
)
|
|
121
|
|
|
(84
|
)
|
|||
Other postretirement benefit plans
|
|
|
|
|
|
||||||
Unrecognized net actuarial loss and transition amount and other
|
79
|
|
|
(11
|
)
|
|
(45
|
)
|
|||
Tax effect
(a)
|
(28
|
)
|
|
3
|
|
|
17
|
|
|||
|
51
|
|
|
(8
|
)
|
|
(28
|
)
|
|||
Cash flow hedges and other
|
|
|
|
|
|
||||||
Recognition of effective portion of hedges
|
56
|
|
|
(76
|
)
|
|
44
|
|
|||
Amortization
|
12
|
|
|
18
|
|
|
(20
|
)
|
|||
Currency and other
|
(2
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|||
Tax effect
(a)
|
(23
|
)
|
|
15
|
|
|
(5
|
)
|
|||
|
43
|
|
|
(45
|
)
|
|
15
|
|
|||
|
|
|
|
|
|
||||||
Change in AOCI
|
$
|
(380
|
)
|
|
$
|
555
|
|
|
$
|
(196
|
)
|
|
46
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Year Ending December 31
|
||
2019
|
$
|
160
|
|
2020
|
123
|
|
|
2021
|
85
|
|
|
2022
|
57
|
|
|
2023
|
41
|
|
|
Thereafter
|
72
|
|
|
Future minimum obligations
|
$
|
538
|
|
|
47
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
48
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Year Ended December 31
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Current income taxes
|
|
|
|
|
|
||||||
United States
|
$
|
177
|
|
|
$
|
463
|
|
|
$
|
523
|
|
State
|
63
|
|
|
52
|
|
|
53
|
|
|||
Other countries
|
229
|
|
|
330
|
|
|
361
|
|
|||
Total
|
469
|
|
|
845
|
|
|
937
|
|
|||
Deferred income taxes
|
|
|
|
|
|
||||||
United States
|
16
|
|
|
(68
|
)
|
|
(40
|
)
|
|||
State
|
22
|
|
|
(3
|
)
|
|
31
|
|
|||
Other countries
|
(36
|
)
|
|
2
|
|
|
(6
|
)
|
|||
Total
|
2
|
|
|
(69
|
)
|
|
(15
|
)
|
|||
Total provision for income taxes
|
$
|
471
|
|
|
$
|
776
|
|
|
$
|
922
|
|
|
Year Ended December 31
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
United States
|
$
|
1,606
|
|
|
$
|
1,995
|
|
|
$
|
2,088
|
|
Other countries
|
207
|
|
|
996
|
|
|
921
|
|
|||
Total income before income taxes
|
$
|
1,813
|
|
|
$
|
2,991
|
|
|
$
|
3,009
|
|
|
49
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
December 31
|
|||||||
|
2018
|
|
2017
|
|||||
Deferred tax assets
|
|
|
|
|||||
Pension and other postretirement benefits
|
$
|
252
|
|
|
$
|
312
|
|
|
Tax credits and loss carryforwards
|
387
|
|
|
470
|
|
|||
Derivatives and unrealized exchange gains and losses
|
37
|
|
|
63
|
|
|||
Other
|
412
|
|
|
355
|
|
|||
|
1,088
|
|
|
1,200
|
|
|||
Valuation allowances
|
(220
|
)
|
|
(176
|
)
|
|||
Total deferred tax assets
|
868
|
|
|
1,024
|
|
|||
|
|
|
|
|||||
Deferred tax liabilities
|
|
|
|
|||||
Property, plant and equipment, net
|
789
|
|
|
818
|
|
|||
Investments in subsidiaries
|
102
|
|
|
117
|
|
|||
Goodwill
|
72
|
|
|
83
|
|
|||
Other
|
143
|
|
|
186
|
|
|||
Total deferred tax liabilities
|
1,106
|
|
|
1,204
|
|
|||
Net deferred tax assets (liabilities)
|
$
|
(238
|
)
|
|
$
|
(180
|
)
|
|
Year Ended December 31
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
U.S. statutory rate applied to income before income taxes
|
21.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State income taxes, net of federal tax benefit
|
3.7
|
|
|
1.1
|
|
|
1.8
|
|
Statutory rates other than U.S. statutory rate
|
0.2
|
|
|
(3.1
|
)
|
|
(2.7
|
)
|
Routine tax incentives
|
(5.4
|
)
|
|
(2.7
|
)
|
|
(4.0
|
)
|
Net tax (benefit) cost on foreign income
|
1.4
|
|
|
(0.7
|
)
|
|
0.1
|
|
Net impact of the Tax Act
|
6.4
|
|
|
(2.5
|
)
|
|
—
|
|
Valuation allowance
|
1.6
|
|
|
(0.1
|
)
|
|
0.2
|
|
Other - net
(a)
|
(2.9
|
)
|
|
(1.1
|
)
|
|
0.2
|
|
Effective income tax rate
|
26.0
|
%
|
|
25.9
|
%
|
|
30.6
|
%
|
(a)
|
Other - net is composed of numerous items, none of which is greater than 1.05 percent and 1.75 percent of income before income taxes in 2018 and 2017- 2016, respectively.
|
|
50
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance at January 1
|
$
|
354
|
|
|
$
|
321
|
|
|
$
|
406
|
|
Gross increases for tax positions of prior years
|
75
|
|
|
50
|
|
|
20
|
|
|||
Gross decreases for tax positions of prior years
|
(86
|
)
|
|
(23
|
)
|
|
(104
|
)
|
|||
Gross increases for tax positions of the current year
|
41
|
|
|
37
|
|
|
39
|
|
|||
Settlements
|
(70
|
)
|
|
(19
|
)
|
|
(29
|
)
|
|||
Other
|
(16
|
)
|
|
(12
|
)
|
|
(11
|
)
|
|||
Balance at December 31
|
$
|
298
|
|
|
$
|
354
|
|
|
$
|
321
|
|
Jurisdiction
|
Years
|
United States
|
2016 to 2018
|
United Kingdom
|
2016 to 2018
|
Brazil
|
2013 to 2018
|
South Korea
|
2014 to 2018
|
China
|
2008 to 2018
|
|
51
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
(Millions of shares)
|
|
2018
|
|
2017
|
|
2016
|
|||
Basic
|
|
348.0
|
|
|
353.6
|
|
|
359.4
|
|
Dilutive effect of stock options and restricted share unit awards
|
|
1.6
|
|
|
2.3
|
|
|
2.3
|
|
Diluted
|
|
349.6
|
|
|
355.9
|
|
|
361.7
|
|
•
|
Personal Care
brands offer our consumers a trusted partner in caring for themselves and their families by delivering confidence, protection and discretion through a wide variety of innovative solutions and products such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products. Products in this segment are sold under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise and other brand names.
|
•
|
Consumer Tissue
offers a wide variety of innovative solutions and trusted brands that responsibly improve everyday living for families around the world. Products in this segment include facial and bathroom tissue, paper towels, napkins and related products, and are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve and other brand names.
|
•
|
K-C Professional
partners with businesses to create Exceptional Workplaces, helping to make them healthier, safer and more productive through a range of solutions and supporting products such as wipers, tissue, towels, apparel, soaps and sanitizers. Our brands, including Kleenex, Scott, WypAll, Kimtech and KleenGuard are well known for quality and trusted to help people around the world work better.
|
|
52
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Year Ended December 31
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
NET SALES
(a)
|
|
|
|
|
|
||||||
Personal Care
|
$
|
9,037
|
|
|
$
|
9,078
|
|
|
$
|
9,046
|
|
Consumer Tissue
|
6,015
|
|
|
5,932
|
|
|
5,967
|
|
|||
K-C Professional
|
3,382
|
|
|
3,297
|
|
|
3,235
|
|
|||
Corporate & Other
|
52
|
|
|
41
|
|
|
39
|
|
|||
TOTAL NET SALES
|
$
|
18,486
|
|
|
$
|
18,348
|
|
|
$
|
18,287
|
|
|
|
|
|
|
|
||||||
OPERATING PROFIT
(b)
|
|
||||||||||
Personal Care
|
$
|
1,833
|
|
|
$
|
1,933
|
|
|
$
|
1,884
|
|
Consumer Tissue
|
875
|
|
|
1,052
|
|
|
1,136
|
|
|||
K-C Professional
|
634
|
|
|
645
|
|
|
616
|
|
|||
Corporate & Other
(c)
|
(1,112
|
)
|
|
(245
|
)
|
|
(245
|
)
|
|||
Other (income) and expense, net
(d)
|
1
|
|
|
27
|
|
|
8
|
|
|||
TOTAL OPERATING PROFIT
|
$
|
2,229
|
|
|
$
|
3,358
|
|
|
$
|
3,383
|
|
(a)
|
Net sales in the U.S. to third parties totaled
$8,803
,
$8,741
and
$8,918
in
2018
,
2017
and
2016
, respectively. No other individual country's net sales exceeds 10 percent of total net sales.
|
(b)
|
Segment operating profit excludes other (income) and expense, net and income and expenses not associated with the business segments.
|
(c)
|
Corporate & Other includes charges of
$921
related to the 2018 Global Restructuring Program in 2018, and charges related to the 2014 Organization Restructuring of
$38
in 2016. Restructuring charges for the 2018 Global Restructuring Program related to the personal care, consumer tissue and K-C Professional business segments were
$528
,
$229
and
$125
, respectively, for 2018.
|
(d)
|
Other (income) and expense, net for 2018 includes income of
$12
related to the 2018 Global Restructuring Program, 2017 includes a charge of
$24
for the early redemption of debt and 2016 includes income of
$11
related to the deconsolidation of our Venezuelan operations.
|
|
53
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Personal
Care
|
|
Consumer
Tissue
|
|
K-C
Professional
|
|
Corporate
& Other
|
|
Total
|
||||||||||
Depreciation and Amortization
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
$
|
426
|
|
|
$
|
331
|
|
|
$
|
121
|
|
|
$
|
4
|
|
|
$
|
882
|
|
2017
|
324
|
|
|
283
|
|
|
112
|
|
|
5
|
|
|
724
|
|
|||||
2016
|
305
|
|
|
280
|
|
|
116
|
|
|
4
|
|
|
705
|
|
|||||
Capital Spending
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
415
|
|
|
299
|
|
|
157
|
|
|
6
|
|
|
877
|
|
|||||
2017
|
405
|
|
|
281
|
|
|
92
|
|
|
7
|
|
|
785
|
|
|||||
2016
|
421
|
|
|
250
|
|
|
95
|
|
|
5
|
|
|
771
|
|
|||||
Goodwill
(a)
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
564
|
|
|
522
|
|
|
388
|
|
|
—
|
|
|
1,474
|
|
|||||
2017
|
617
|
|
|
559
|
|
|
400
|
|
|
—
|
|
|
1,576
|
|
|||||
2016
|
549
|
|
|
538
|
|
|
393
|
|
|
—
|
|
|
1,480
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
2018
|
6,208
|
|
|
4,738
|
|
|
2,285
|
|
|
1,287
|
|
|
14,518
|
|
|||||
2017
|
6,592
|
|
|
5,007
|
|
|
2,255
|
|
|
1,297
|
|
|
15,151
|
|
|||||
2016
|
6,141
|
|
|
4,761
|
|
|
2,151
|
|
|
1,549
|
|
|
14,602
|
|
(a)
|
In 2017, we acquired the remaining
50
percent of our joint venture in India, which resulted in the recognition of
$35
of personal care goodwill. All other changes in goodwill are related to currency.
|
(Billions of dollars)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Consumer tissue products
|
|
$
|
6.0
|
|
|
$
|
5.9
|
|
|
$
|
6.0
|
|
Baby and child care products
|
|
6.3
|
|
|
6.3
|
|
|
6.4
|
|
|||
Away-from-home professional products
|
|
3.4
|
|
|
3.3
|
|
|
3.2
|
|
|||
All other
|
|
2.8
|
|
|
2.8
|
|
|
2.7
|
|
|||
Consolidated
|
|
$
|
18.5
|
|
|
$
|
18.3
|
|
|
$
|
18.3
|
|
|
Year Ended December 31
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Advertising expense
|
$
|
655
|
|
|
$
|
648
|
|
|
$
|
665
|
|
Research expense
|
317
|
|
|
309
|
|
|
326
|
|
|
54
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
Net
Sales
|
|
Gross
Profit
|
|
Operating
Profit
|
|
Net
Income
|
|
Corporation's
Share of Net
Income
|
||||||||||
2018
|
$
|
2,264
|
|
|
$
|
635
|
|
|
$
|
388
|
|
|
$
|
215
|
|
|
$
|
103
|
|
2017
|
2,191
|
|
|
627
|
|
|
378
|
|
|
214
|
|
|
104
|
|
|||||
2016
|
2,138
|
|
|
720
|
|
|
454
|
|
|
276
|
|
|
132
|
|
|||||
|
Current
Assets
|
|
Non-Current
Assets
|
|
Current
Liabilities
|
|
Non-Current
Liabilities
|
|
Stockholders'
Equity
|
||||||||||
2018
|
$
|
921
|
|
|
$
|
1,247
|
|
|
$
|
578
|
|
|
$
|
1,237
|
|
|
$
|
353
|
|
2017
|
828
|
|
|
1,232
|
|
|
415
|
|
|
1,125
|
|
|
520
|
|
|||||
2016
|
963
|
|
|
1,168
|
|
|
531
|
|
|
1,046
|
|
|
554
|
|
|
December 31
|
||||||
Summary of Accounts Receivable, Net
|
2018
|
|
2017
|
||||
From customers
|
$
|
2,050
|
|
|
$
|
2,203
|
|
Other
|
167
|
|
|
168
|
|
||
Less allowance for doubtful accounts and sales discounts
|
(53
|
)
|
|
(56
|
)
|
||
Total
|
$
|
2,164
|
|
|
$
|
2,315
|
|
|
December 31
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
Summary of Inventories by Major Class
|
LIFO
|
|
Non-
LIFO
|
|
Total
|
|
LIFO
|
|
Non-
LIFO
|
|
Total
|
||||||||||||
Raw materials
|
$
|
99
|
|
|
$
|
263
|
|
|
$
|
362
|
|
|
$
|
87
|
|
|
$
|
258
|
|
|
$
|
345
|
|
Work in process
|
120
|
|
|
94
|
|
|
214
|
|
|
110
|
|
|
103
|
|
|
213
|
|
||||||
Finished goods
|
461
|
|
|
692
|
|
|
1,153
|
|
|
421
|
|
|
684
|
|
|
1,105
|
|
||||||
Supplies and other
|
—
|
|
|
275
|
|
|
275
|
|
|
—
|
|
|
303
|
|
|
303
|
|
||||||
|
680
|
|
|
1,324
|
|
|
2,004
|
|
|
618
|
|
|
1,348
|
|
|
1,966
|
|
||||||
Excess of FIFO or weighted-average cost over LIFO cost
|
(191
|
)
|
|
—
|
|
|
(191
|
)
|
|
(176
|
)
|
|
—
|
|
|
(176
|
)
|
||||||
Total
|
$
|
489
|
|
|
$
|
1,324
|
|
|
$
|
1,813
|
|
|
$
|
442
|
|
|
$
|
1,348
|
|
|
$
|
1,790
|
|
|
55
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
December 31
|
||||||
Summary of Property, Plant and Equipment, Net
|
2018
|
|
2017
|
||||
Land
|
$
|
169
|
|
|
$
|
173
|
|
Buildings
|
2,787
|
|
|
2,830
|
|
||
Machinery and equipment
|
14,059
|
|
|
14,612
|
|
||
Construction in progress
|
699
|
|
|
300
|
|
||
|
17,714
|
|
|
17,915
|
|
||
Less accumulated depreciation
|
(10,555
|
)
|
|
(10,479
|
)
|
||
Total
|
$
|
7,159
|
|
|
$
|
7,436
|
|
|
December 31
|
||||||
Summary of Accrued Expenses
|
2018
|
|
2017
|
||||
Accrued advertising and promotion
|
$
|
399
|
|
|
$
|
394
|
|
Accrued salaries and wages
|
369
|
|
|
449
|
|
||
Accrued rebates
|
239
|
|
|
227
|
|
||
Accrued taxes - income and other
|
260
|
|
|
249
|
|
||
Accrued restructuring
|
118
|
|
|
—
|
|
||
Accrued interest
|
75
|
|
|
68
|
|
||
Derivatives
|
14
|
|
|
45
|
|
||
Other
|
319
|
|
|
298
|
|
||
Total
|
$
|
1,793
|
|
|
$
|
1,730
|
|
Summary of Cash Flow Effects of Operating Working Capital
|
Year Ended December 31
|
||||||||||
2018
|
|
2017
|
|
2016
|
|||||||
Accounts receivable
|
$
|
33
|
|
|
$
|
(44
|
)
|
|
$
|
(23
|
)
|
Inventories
|
(127
|
)
|
|
(33
|
)
|
|
230
|
|
|||
Trade accounts payable
|
392
|
|
|
174
|
|
|
(61
|
)
|
|||
Accrued expenses
|
115
|
|
|
(102
|
)
|
|
26
|
|
|||
Accrued income taxes
|
64
|
|
|
(176
|
)
|
|
121
|
|
|||
Derivatives
|
30
|
|
|
(47
|
)
|
|
43
|
|
|||
Currency and other
|
(118
|
)
|
|
80
|
|
|
(2
|
)
|
|||
Total
|
$
|
389
|
|
|
$
|
(148
|
)
|
|
$
|
334
|
|
|
Year Ended December 31
|
||||||||||
Other Cash Flow Data
|
2018
|
|
2017
|
|
2016
|
||||||
Interest paid
|
$
|
264
|
|
|
$
|
354
|
|
|
$
|
315
|
|
Income taxes paid
|
395
|
|
|
961
|
|
|
744
|
|
|
56
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
/s/ D
ELOITTE
& T
OUCHE
LLP
|
Deloitte & Touche LLP
|
Dallas, Texas
|
February 7, 2019
|
|
57
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
|
58
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
/s/ D
ELOITTE
& T
OUCHE
LLP
|
Deloitte & Touche LLP
|
Dallas, Texas
|
February 7, 2019
|
|
59
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
PART III
|
•
|
"The Nominees" under "Proposal 1. Election of Directors," which identifies our directors and nominees for our Board of Directors.
|
•
|
"Other Information - Section 16(a) Beneficial Ownership Reporting Compliance."
|
•
|
"Corporate Governance - Other Corporate Governance Policies and Practices - Code of Conduct," which describes our Code of Conduct.
|
•
|
"Corporate Governance - Stockholder Rights," "Proposal 1. Election of Directors," "Other Information - Stockholder Director Nominees for Inclusion in Next Year's Proxy Statement," and "Other Information - Stockholder Director Nominees Not Included in Next Year's Proxy Statement," which describe the procedures by which stockholders may nominate candidates for election to our Board of Directors.
|
•
|
"Corporate Governance - Board Committees - Audit Committee," which identifies members of the Audit Committee of our Board of Directors and audit committee financial experts.
|
|
60
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
PART IV
|
(a)
|
Documents filed as part of this report.
|
1.
|
Financial statements.
|
2.
|
Financial statement schedules.
|
3.
|
Exhibits
|
Exhibit No. (4).
|
Copies of instruments defining the rights of holders of long-term debt will be furnished to the Securities and Exchange Commission on request.
|
|
61
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
Exhibit No. (21).
|
Exhibit No. (24).
|
|
62
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
Exhibit No. (101).INS
|
XBRL Instance Document
|
Exhibit No. (101).SCH
|
XBRL Taxonomy Extension Schema Document
|
Exhibit No. (101).CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
Exhibit No. (101).DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
Exhibit No. (101).LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
Exhibit No. (101).PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
A management contract or compensatory plan or arrangement required to be identified pursuant to Item 15(a)(3) of this Annual Report on Form 10-K.
|
|
63
|
KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
|
|
KIMBERLY-CLARK CORPORATION
|
|
|
|
|
February 7, 2019
|
By:
|
/s/ Maria Henry
|
|
|
Maria Henry
|
|
|
Senior Vice President and Chief Financial Officer
|
/s/ Michael D. Hsu
|
|
Chief Executive Officer and Director
(principal executive officer)
|
February 7, 2019
|
Michael D. Hsu
|
|
|
|
|
|
|
|
/s/ Maria Henry
|
|
Senior Vice President and Chief Financial Officer
(principal financial officer)
|
February 7, 2019
|
Maria Henry
|
|
|
|
|
|
|
|
/s/ Michael T. Azbell
|
|
Vice President and Controller
(principal accounting officer)
|
February 7, 2019
|
Michael T. Azbell
|
|
|
John F. Bergstrom
|
|
Nancy J. Karch
|
Abelardo E. Bru
|
|
Sherilyn S. McCoy
|
Robert W. Decherd
|
|
Christa S. Quarles
|
Thomas J. Falk
|
|
Ian C. Read
|
Fabian T. Garcia
|
|
Marc J. Shapiro
|
Mae C. Jemison
|
|
Michael D. White
|
James M. Jenness
|
|
|
By:
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/s/ Jeffrey Melucci
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February 7, 2019
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Jeffrey Melucci
Attorney-in-Fact
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64
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KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
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Description
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Balance at
Beginning
of Period
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Additions
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Deductions
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||||||||||||
Charged to
Costs and
Expenses
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Charged to
Other
Accounts
(a)
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Write-Offs and
Reclassifications
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Balance
at End of
Period
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|||||||||||||
December 31, 2018
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||||||||||
Allowances deducted from assets to which they apply
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Allowance for doubtful accounts
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$
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38
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$
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15
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$
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(3
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)
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$
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14
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(b)
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$
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36
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Allowances for sales discounts
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18
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248
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(4
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)
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245
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(c)
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17
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|||||
December 31, 2017
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Allowances deducted from assets to which they apply
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Allowance for doubtful accounts
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$
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50
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$
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8
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$
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2
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$
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22
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(b)
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$
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38
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Allowances for sales discounts
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18
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247
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—
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247
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(c)
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18
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|||||
December 31, 2016
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Allowances deducted from assets to which they apply
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||||||||||
Allowance for doubtful accounts
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$
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50
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$
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8
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$
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3
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$
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11
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(b)
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$
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50
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Allowances for sales discounts
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15
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254
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—
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251
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(c)
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18
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(a)
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Includes bad debt recoveries and the effects of changes in foreign currency exchange rates.
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(b)
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Primarily uncollectible receivables written off.
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(c)
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Sales discounts allowed.
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Additions
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||||||||||||
Description
|
Balance at
Beginning
of Period
|
|
Charged to
Costs and
Expenses
|
|
Charged to
Other
Accounts
|
|
Deductions
(a)
|
|
Balance
at End
of Period
|
||||||||||
December 31, 2018
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Deferred taxes
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Valuation allowance
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$
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176
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$
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55
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$
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—
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$
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11
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$
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220
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December 31, 2017
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Deferred taxes
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Valuation allowance
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$
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225
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$
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(59
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)
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$
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—
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$
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(10
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)
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$
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176
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December 31, 2016
|
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||||||||||
Deferred taxes
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Valuation allowance
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$
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274
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$
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(45
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)
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$
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—
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$
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4
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$
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225
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(a)
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Represents the net currency effects of translating valuation allowances at current rates of exchange.
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65
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KIMBERLY-CLARK CORPORATION
- 2018 Annual Report
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No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
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DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
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No information found
Customers
Customer name | Ticker |
---|---|
Bed Bath & Beyond Inc. | BBBY |
Macy's, Inc. | M |
The Home Depot, Inc. | HD |
Kohl's Corporation | KSS |
W.W. Grainger, Inc. | GWW |
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|