Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 17, 2017 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 | |
Entity Registrant Name | KIMBERLY CLARK CORP | |
Entity Central Index Key | 55,785 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 354,928,124 |
Consolidated Income Statement
Consolidated Income Statement - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Income Statement [Abstract] | |||
Net Sales | $ 4,483 | $ 4,476 | |
Cost of products sold | 2,831 | 2,837 | |
Gross Profit | 1,652 | 1,639 | |
Marketing, research and general expenses | 813 | 825 | |
Other (income) and expense, net | [1] | 5 | 10 |
Operating Profit | 834 | 804 | |
Interest income | 2 | 4 | |
Interest expense | (83) | (76) | |
Income Before Income Taxes and Equity Interests | 753 | 732 | |
Provision for income taxes | (207) | (207) | |
Income Before Equity Interests | 546 | 525 | |
Share of net income of equity companies | 29 | 35 | |
Net Income | 575 | 560 | |
Net income attributable to noncontrolling interests | (12) | (15) | |
Net Income Attributable to Kimberly-Clark Corporation | $ 563 | $ 545 | |
Per Share Basis | |||
Basic | $ 1.58 | $ 1.51 | |
Diluted | 1.57 | 1.50 | |
Cash Dividends Declared | $ 0.97 | $ 0.92 | |
[1] | (a) Corporate & Other and Other (income) and expense, net include expenses not associated with the business segments, including charges as indicated in the Non-GAAP Reconciliations. |
Consolidated Statement Of Compr
Consolidated Statement Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 575 | $ 560 |
Other Comprehensive Income (Loss), Net of Tax | ||
Unrealized currency translation adjustments | 267 | 208 |
Employee postretirement benefits | (2) | (6) |
Other | (16) | (19) |
Total Other Comprehensive Income (Loss), Net of Tax | 249 | 183 |
Comprehensive Income | 824 | 743 |
Comprehensive income attributable to noncontrolling interests | (31) | (22) |
Comprehensive Income Attributable to Kimberly-Clark Corporation | $ 793 | $ 721 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 835 | $ 923 |
Accounts receivable, net | 2,224 | 2,176 |
Inventories | 1,728 | 1,679 |
Other current assets | 325 | 337 |
Total Current Assets | 5,112 | 5,115 |
Property, Plant and Equipment, Net | 7,251 | 7,169 |
Investments in Equity Companies | 284 | 257 |
Goodwill | 1,528 | 1,480 |
Other Assets | 583 | 581 |
TOTAL ASSETS | 14,758 | 14,602 |
Current Liabilities | ||
Debt payable within one year | 1,328 | 1,133 |
Trade accounts payable | 2,571 | 2,609 |
Accrued expenses | 1,620 | 1,775 |
Dividends payable | 345 | 329 |
Total Current Liabilities | 5,864 | 5,846 |
Long-Term Debt | 6,425 | 6,439 |
Noncurrent Employee Benefits | 1,278 | 1,301 |
Deferred Income Taxes | 457 | 532 |
Other Liabilities | 314 | 309 |
Redeemable Preferred Securities of Subsidiaries | 58 | 58 |
Stockholders' Equity (Deficit) | ||
Kimberly-Clark Corporation | 136 | (102) |
Noncontrolling Interests | 226 | 219 |
Total Stockholders' Equity | 362 | 117 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 14,758 | $ 14,602 |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statement - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities | ||
Net income | $ 575 | $ 560 |
Depreciation and amortization | 178 | 172 |
Stock-based compensation | 20 | 15 |
Deferred income taxes | (25) | (34) |
Equity companies' earnings in excess of dividends paid | (26) | (30) |
Operating working capital | (264) | (105) |
Postretirement benefits | (21) | (16) |
Other | (1) | (9) |
Cash Provided by Operations | 436 | 553 |
Investing Activities | ||
Capital spending | (215) | (220) |
Investments in time deposits | (37) | (59) |
Maturities of time deposits | 70 | 42 |
Other | 4 | 8 |
Cash Used for Investing | (178) | (229) |
Financing Activities | ||
Cash dividends paid | (329) | (318) |
Change in short-term debt | 196 | (675) |
Debt proceeds | 0 | 796 |
Debt repayments | (8) | (2) |
Proceeds from exercise of stock options | 78 | 31 |
Acquisitions of common stock for the treasury | (295) | (140) |
Other | (9) | (7) |
Cash Used for Financing | (367) | (315) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 21 | 7 |
Change in Cash and Cash Equivalents | (88) | 16 |
Cash and Cash Equivalents - Beginning of Year | 923 | 619 |
Cash and Cash Equivalents - End of Period | $ 835 | $ 635 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair presentation of the results for the periods presented have been reflected. Dollar amounts are reported in millions, except per share dollar amounts, unless otherwise noted. For further information, refer to the consolidated financial statements and footnotes included in our Annual Report on Form 10‑K for the year ended December 31, 2016 . The terms "Corporation," "Kimberly-Clark," "K-C," "we," "our" and "us" refer to Kimberly-Clark Corporation and its consolidated subsidiaries. Recently Adopted Accounting Standards In 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation-Stock Compensation (Topic 718) . The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. We adopted this standard as of January 1, 2017. The adoption did not have a material impact on our financial position, results of operations and cash flows. Prior periods were not recast. In 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) providing guidance on eight specific cash flow statement classification matters. We early adopted this standard as of January 1, 2017. The adoption of this standard did not have a material impact on our cash flow statement. Prior periods were not recast. Accounting Standards Issued - Not Yet Adopted In 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The standard requires that an employer report the service cost component in the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of operating profit. The standard is effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Prior periods are required to be recast. We will adopt this standard as of January 1, 2018. Net periodic benefit cost for pensions and other postretirement benefits for the three months ended March 31, 2017 and 2016 was $27 and $32 , respectively, of which $13 and $17 , respectively, related to service cost. In 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The ASU is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. The ASU should be applied on a modified retrospective basis, recognizing the effects in retained earnings as of the beginning of the year of adoption. We will adopt this standard as of January 1, 2018. The effects of this standard on our financial position, results of operations and cash flows are not yet known. In 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. The ASU requires additional disclosures. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The ASU requires adoption based upon a modified retrospective transition approach. Early adoption is permitted. The effects of this standard on our financial position, results of operations and cash flows are not yet known. In 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. In 2016, the FASB issued four amendments to the ASU. The standard is effective for public companies for annual and interim periods beginning after December 15, 2017. We will adopt this ASU effective January 1, 2018. The guidance is required to be adopted on either a full or modified retrospective basis. As this standard is not expected to have a material impact on our financial position, results of operations and cash flows on either a full or modified retrospective basis, we do not plan to recast prior periods. |
Fair Value Information
Fair Value Information | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Information | Fair Value Information The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are: Level 1 – Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2 – Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require inputs that are significant to the valuation and are unobservable. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. During the three months ended March 31, 2017 and for the full year 2016 , there were no significant transfers among level 1, 2, or 3 fair value determinations. Derivative assets and liabilities are measured on a recurring basis at fair value. At March 31, 2017 and December 31, 2016 , derivative assets were $31 and $43 , respectively, and derivative liabilities were $39 and $46 , respectively. The fair values of derivatives used to manage interest rate risk and commodity price risk are based on LIBOR rates and interest rate swap curves and NYMEX price quotations, respectively. The fair value of hedging instruments used to manage foreign currency risk is based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. Measurement of our derivative assets and liabilities is considered a level 2 measurement. Additional information on our classification and use of derivative instruments is contained in Note 5 . Redeemable preferred securities of subsidiaries are measured on a recurring basis at fair value and were $58 at both March 31, 2017 and December 31, 2016 . They are not traded in active markets. For certain redeemable securities, fair values were calculated using a floating rate pricing model that compared the stated spread to the fair value spread to determine the price at which each of the financial instruments should trade. The model used the following inputs to calculate fair values: face value, current LIBOR rate, unobservable fair value credit spread, stated spread, maturity date and interest or dividend payment dates. The fair value of the remaining redeemable securities was based on various inputs, including an independent third-party appraisal, adjusted for current market conditions. Measurement of the redeemable preferred securities is considered a level 3 measurement. Company-owned life insurance ("COLI") assets are measured on a recurring basis at fair value. COLI assets were $63 and $61 at March 31, 2017 and December 31, 2016 , respectively. The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in other assets. The COLI policies are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy. The following table includes the fair value of our financial instruments for which disclosure of fair value is required: Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value March 31, 2017 December 31, 2016 Assets Cash and cash equivalents (a) 1 $ 835 $ 835 $ 923 $ 923 Time deposits and other (b) 1 114 114 138 138 Liabilities and redeemable securities of subsidiaries Short-term debt (c) 2 368 368 170 170 Long-term debt (d) 2 7,385 7,840 7,402 7,886 (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. Other, included in other current assets, is composed of funds held in escrow. Time deposits and other 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share ("EPS") There are no adjustments required to be made to net income for purposes of computing EPS. The average number of common shares outstanding is reconciled to those used in the basic and diluted EPS computations as follows: Three Months Ended March 31 (Millions of shares) 2017 2016 Basic 356.0 360.7 Dilutive effect of stock options and restricted share unit awards 2.6 2.7 Diluted 358.6 363.4 Options outstanding that were not included in the computation of diluted EPS because their exercise price was greater than the average market price of the common shares were insignificant. The number of common shares outstanding as of March 31, 2017 and 2016 was 355.2 million and 360.2 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Set forth below is a reconciliation for the three months ended March 31, 2017 of the carrying amount of total stockholders' equity (deficit) from the beginning of the period to the end of the period. Stockholders' Equity (Deficit) Attributable to The Corporation Noncontrolling Interests Balance at December 31, 2016 $ (102 ) $ 219 Net Income 563 10 Other comprehensive income, net of tax 230 19 Stock-based awards exercised or vested 78 — Recognition of stock-based compensation 20 — Shares repurchased (310 ) — Dividends declared (345 ) (21 ) Other 2 (1 ) Balance at March 31, 2017 $ 136 $ 226 During the three months ended March 31, 2017 , we repurchased 2.4 million shares at a total cost of $300 pursuant to a share repurchase program authorized by our Board of Directors. Net unrealized currency gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries, except those in highly inflationary economies, are recorded in accumulated other comprehensive income ("AOCI"). For these operations, changes in exchange rates generally do not affect cash flows; therefore, unrealized translation adjustments are recorded in AOCI rather than net income. Upon sale or substantially complete liquidation of any of these subsidiaries, the applicable unrealized translation would be removed from AOCI and reported as part of the gain or loss on the sale or liquidation. Also included in unrealized translation amounts are the effects of foreign exchange rate changes on intercompany balances of a long-term investment nature and transactions designated as hedges of net foreign investments. The change in net unrealized currency translation for the three months ended March 31, 2017 was primarily due to the strengthening of most foreign currencies versus the U.S. dollar, including the South Korean won, Australian dollar, Brazilian real and Taiwan dollar. The changes in the components of AOCI attributable to Kimberly-Clark, net of tax, are as follows: Unrealized Translation Defined Benefit Pension Plans Other Postretirement Benefit Plans Cash Flow Hedges and Other Balance as of December 31, 2015 $ (2,252 ) $ (1,013 ) $ (3 ) $ (10 ) Other comprehensive income (loss) before reclassifications 200 (12 ) — (13 ) (Income) loss reclassified from AOCI — 7 (a) — (6 ) Net current period other comprehensive income (loss) 200 (5 ) — (19 ) Balance as of March 31, 2016 $ (2,052 ) $ (1,018 ) $ (3 ) $ (29 ) Balance as of December 31, 2016 $ (2,351 ) $ (1,097 ) $ (31 ) $ 5 Other comprehensive income (loss) before reclassifications 248 (11 ) — (15 ) (Income) loss reclassified from AOCI — 9 (a) — (1 ) Net current period other comprehensive income (loss) 248 (2 ) — (16 ) Balance as of March 31, 2017 $ (2,103 ) $ (1,099 ) $ (31 ) $ (11 ) (a) Included in computation of net periodic pension costs. |
Objectives And Strategies For U
Objectives And Strategies For Using Derivatives | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Objectives And Strategies For Using Derivatives | Objectives and Strategies for Using Derivatives As a multinational enterprise, we are exposed to financial risks, such as changes in foreign currency exchange rates, interest rates, and commodity prices. We employ a number of practices to manage these risks, including operating and financing activities and, where appropriate, the use of derivative instruments. We enter into derivative instruments to hedge a portion of forecasted cash flows denominated in foreign currencies for non-U.S. operations' purchases of raw materials, which are priced in U.S. dollars, and imports of intercompany finished goods and work-in-process priced predominantly in U.S. dollars and euros. The derivative instruments used to manage these exposures are designated and qualify as cash flow hedges. The foreign currency exposure on certain non-functional currency denominated monetary assets and liabilities, primarily intercompany loans and accounts payable, is hedged with primarily undesignated derivative instruments. Interest rate risk is managed using a portfolio of variable and fixed-rate debt composed of short and long-term instruments. Interest rate swap contracts may be used to facilitate the maintenance of the desired ratio of variable and fixed-rate debt and are designated and qualify as fair value hedges. From time to time, we also hedge the anticipated issuance of fixed-rate debt, and these contracts are designated as cash flow hedges. We use derivative instruments, such as forward swap contracts, to hedge a limited portion of our exposure to market risk arising from changes in prices of certain commodities. These derivatives are designated as cash flow hedges of specific quantities of the underlying commodity expected to be purchased in future months. Translation adjustments result from translating foreign entities' financial statements into U.S. dollars from their functional currencies. The risk to any particular entity's net assets is reduced to the extent that the entity is financed with local currency borrowing. Translation exposure, which results from changes in translation rates between functional currencies and the U.S. dollar, generally is not hedged. However, consistent with other years, a portion of our net investment in our Mexican affiliate has been hedged. At March 31, 2017 , we had in place net investment hedges of $112 for a portion of our investment in our Mexican affiliate. Set forth below is a summary of the designated and undesignated fair values of our derivative instruments: Assets Liabilities March 31, December 31, March 31, December 31, Foreign currency exchange contracts $ 29 $ 38 $ 28 $ 44 Interest rate contracts — — 9 — Commodity price contracts 2 5 2 2 Total $ 31 $ 43 $ 39 $ 46 The derivative assets are included in the consolidated balance sheet in other current assets and other assets, as appropriate. The derivative liabilities are included in the consolidated balance sheet in accrued expenses and other liabilities, as appropriate. Derivative instruments that are designated and qualify as fair value hedges are predominantly used to manage interest rate risk. The fair values of these derivative instruments are recorded as an asset or liability, as appropriate, with the offset recorded in current earnings. The offset to the change in fair values of the related hedged items also is recorded in current earnings. Any realized gain or loss on the derivatives that hedge interest rate risk is amortized to interest expense over the life of the related debt. As of March 31, 2017 , there were no outstanding interest rate contracts designated as fair value hedges. Fair value hedges resulted in no significant ineffectiveness in the three months ended March 31, 2017 and 2016 , and gains or losses recognized in interest expense for interest rate swaps were not significant. For the three month periods ended March 31, 2017 and 2016 , no gain or loss was recognized in earnings as a result of a hedged firm commitment no longer qualifying as a fair value hedge. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is initially recorded in AOCI, net of related income taxes, and recognized in earnings in the same period that the hedged exposure affects earnings. As of March 31, 2017 , outstanding commodity forward contracts were in place to hedge a limited portion of our estimated requirements of the related underlying commodities in the remainder of 2017 and future periods. As of March 31, 2017 , the aggregate notional value of outstanding foreign exchange and interest rate derivative contracts designated as cash flow hedges was $740 and $550 , respectively. Cash flow hedges resulted in no significant ineffectiveness for the three months ended March 31, 2017 and 2016 , and no gains or losses were reclassified into earnings as a result of the discontinuance of cash flow hedges due to the original forecasted transaction no longer being probable of occurring. At March 31, 2017 , amounts to be reclassified from AOCI during the next twelve months are not expected to be material. The maximum maturity of cash flow hedges in place at March 31, 2017 is April 2019 . Gains or losses on undesignated foreign exchange hedging instruments are immediately recognized in other (income) and expense, net. A loss of $3 and a gain of $28 were recorded in the three months ended March 31, 2017 and 2016 , respectively. The effect on earnings from the use of these non-designated derivatives is substantially neutralized by the transactional gains and losses recorded on the underlying assets and liabilities. At March 31, 2017 , the notional amount of these undesignated derivative instruments was $1.8 billion . |
Description Of Business Segment
Description Of Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We are organized into operating segments based on product groupings. These operating segments have been aggregated into three reportable global business segments: Personal Care, Consumer Tissue and K-C Professional. The reportable segments were determined in accordance with how our chief operating decision maker and our executive managers develop and execute global strategies to drive growth and profitability. These strategies include global plans for branding and product positioning, technology, research and development programs, cost reductions including supply chain management, and capacity and capital investments for each of these businesses. Segment management is evaluated on several factors, including operating profit. Segment operating profit excludes other (income) and expense, net and income and expense not associated with the business segments. The principal sources of revenue in each global business segment are described below: • 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 touch and improve people's lives every day. 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 Jackson Safety, are well-known for quality and trusted to help people around the world work better. Information concerning consolidated operations by business segment is presented in the following tables: Three Months Ended March 31 2017 2016 Change NET SALES Personal Care $ 2,250 $ 2,207 +2 % Consumer Tissue 1,455 1,496 -3 % K-C Professional 768 763 +1 % Corporate & Other 10 10 N.M. TOTAL NET SALES $ 4,483 $ 4,476 — OPERATING PROFIT Personal Care $ 481 $ 449 +7 % Consumer Tissue 275 280 -2 % K-C Professional 146 150 -3 % Corporate & Other (a) (63 ) (65 ) N.M. Other (income) and expense, net (a) 5 10 -50 % TOTAL OPERATING PROFIT $ 834 $ 804 +4 % (a) Corporate & Other and Other (income) and expense, net include expenses not associated with the business segments, including charges as indicated in the Non-GAAP Reconciliations. N.M. - Not Meaningful |
Supplemental Balance Sheet Data
Supplemental Balance Sheet Data | 3 Months Ended |
Mar. 31, 2017 | |
Statement of Financial Position [Abstract] | |
Additional Financial Information Disclosure | Supplemental Balance Sheet Data The following schedule presents a summary of inventories by major class: March 31, 2017 December 31, 2016 LIFO Non-LIFO Total LIFO Non-LIFO Total Raw materials $ 91 $ 245 $ 336 $ 93 $ 236 $ 329 Work in process 113 88 201 114 89 203 Finished goods 444 620 1,064 430 600 1,030 Supplies and other — 290 290 — 280 280 648 1,243 1,891 637 1,205 1,842 Excess of FIFO or weighted-average cost over LIFO cost (163 ) — (163 ) (163 ) — (163 ) Total $ 485 $ 1,243 $ 1,728 $ 474 $ 1,205 $ 1,679 Inventories are valued at the lower of cost and net realizable value, determined on the FIFO or weighted-average cost methods, and at the lower of cost or market, determined on the LIFO cost method. The following schedule presents a summary of property, plant and equipment, net: March 31, 2017 December 31, 2016 Land $ 170 $ 163 Buildings 2,679 2,612 Machinery and equipment 13,914 13,591 Construction in progress 428 488 17,191 16,854 Less accumulated depreciation (9,940 ) (9,685 ) Total $ 7,251 $ 7,169 |
Fair Value Information (Tables)
Fair Value Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | The following table includes the fair value of our financial instruments for which disclosure of fair value is required: Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value March 31, 2017 December 31, 2016 Assets Cash and cash equivalents (a) 1 $ 835 $ 835 $ 923 $ 923 Time deposits and other (b) 1 114 114 138 138 Liabilities and redeemable securities of subsidiaries Short-term debt (c) 2 368 368 170 170 Long-term debt (d) 2 7,385 7,840 7,402 7,886 (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. Other, included in other current assets, is composed of funds held in escrow. Time deposits and other 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Average Common Shares Outstanding Basic and Diluted | The average number of common shares outstanding is reconciled to those used in the basic and diluted EPS computations as follows: Three Months Ended March 31 (Millions of shares) 2017 2016 Basic 356.0 360.7 Dilutive effect of stock options and restricted share unit awards 2.6 2.7 Diluted 358.6 363.4 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Components Of Stockholders' Equity | Set forth below is a reconciliation for the three months ended March 31, 2017 of the carrying amount of total stockholders' equity (deficit) from the beginning of the period to the end of the period. Stockholders' Equity (Deficit) Attributable to The Corporation Noncontrolling Interests Balance at December 31, 2016 $ (102 ) $ 219 Net Income 563 10 Other comprehensive income, net of tax 230 19 Stock-based awards exercised or vested 78 — Recognition of stock-based compensation 20 — Shares repurchased (310 ) — Dividends declared (345 ) (21 ) Other 2 (1 ) Balance at March 31, 2017 $ 136 $ 226 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the components of AOCI attributable to Kimberly-Clark, net of tax, are as follows: Unrealized Translation Defined Benefit Pension Plans Other Postretirement Benefit Plans Cash Flow Hedges and Other Balance as of December 31, 2015 $ (2,252 ) $ (1,013 ) $ (3 ) $ (10 ) Other comprehensive income (loss) before reclassifications 200 (12 ) — (13 ) (Income) loss reclassified from AOCI — 7 (a) — (6 ) Net current period other comprehensive income (loss) 200 (5 ) — (19 ) Balance as of March 31, 2016 $ (2,052 ) $ (1,018 ) $ (3 ) $ (29 ) Balance as of December 31, 2016 $ (2,351 ) $ (1,097 ) $ (31 ) $ 5 Other comprehensive income (loss) before reclassifications 248 (11 ) — (15 ) (Income) loss reclassified from AOCI — 9 (a) — (1 ) Net current period other comprehensive income (loss) 248 (2 ) — (16 ) Balance as of March 31, 2017 $ (2,103 ) $ (1,099 ) $ (31 ) $ (11 ) (a) Included in computation of net periodic pension costs. |
Objectives And Strategies For16
Objectives And Strategies For Using Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Total Designated and Undesignated Fair Value of Derivative Instruments | Set forth below is a summary of the designated and undesignated fair values of our derivative instruments: Assets Liabilities March 31, December 31, March 31, December 31, Foreign currency exchange contracts $ 29 $ 38 $ 28 $ 44 Interest rate contracts — — 9 — Commodity price contracts 2 5 2 2 Total $ 31 $ 43 $ 39 $ 46 |
Description Of Business Segme17
Description Of Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Information Concerning Consolidated Operations by Business Segment | Information concerning consolidated operations by business segment is presented in the following tables: Three Months Ended March 31 2017 2016 Change NET SALES Personal Care $ 2,250 $ 2,207 +2 % Consumer Tissue 1,455 1,496 -3 % K-C Professional 768 763 +1 % Corporate & Other 10 10 N.M. TOTAL NET SALES $ 4,483 $ 4,476 — OPERATING PROFIT Personal Care $ 481 $ 449 +7 % Consumer Tissue 275 280 -2 % K-C Professional 146 150 -3 % Corporate & Other (a) (63 ) (65 ) N.M. Other (income) and expense, net (a) 5 10 -50 % TOTAL OPERATING PROFIT $ 834 $ 804 +4 % (a) Corporate & Other and Other (income) and expense, net include expenses not associated with the business segments, including charges as indicated in the Non-GAAP Reconciliations. N.M. - Not Meaningful |
Summary of Balance Sheet Data (
Summary of Balance Sheet Data (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Statement of Financial Position [Abstract] | |
Schedule of Inventory, Current | The following schedule presents a summary of inventories by major class: March 31, 2017 December 31, 2016 LIFO Non-LIFO Total LIFO Non-LIFO Total Raw materials $ 91 $ 245 $ 336 $ 93 $ 236 $ 329 Work in process 113 88 201 114 89 203 Finished goods 444 620 1,064 430 600 1,030 Supplies and other — 290 290 — 280 280 648 1,243 1,891 637 1,205 1,842 Excess of FIFO or weighted-average cost over LIFO cost (163 ) — (163 ) (163 ) — (163 ) Total $ 485 $ 1,243 $ 1,728 $ 474 $ 1,205 $ 1,679 |
Property, Plant and Equipment | The following schedule presents a summary of property, plant and equipment, net: March 31, 2017 December 31, 2016 Land $ 170 $ 163 Buildings 2,679 2,612 Machinery and equipment 13,914 13,591 Construction in progress 428 488 17,191 16,854 Less accumulated depreciation (9,940 ) (9,685 ) Total $ 7,251 $ 7,169 |
Accounting Policies Narrative (
Accounting Policies Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 27 | $ 32 |
Defined Benefit Plan, Service Cost | $ 13 | $ 17 |
Fair Value Information (Narrati
Fair Value Information (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Preferred securities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Redeemable Preferred Securities Of Subsidiaries Fair Value Disclosure | $ 58 | $ 58 |
Fair Value, Measurements, Recurring | Net Asset Value or Its Equivalent | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Company-owned life insurance (“COLI”) | 63 | 61 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivatives Assets | 31 | 43 |
Derivatives Liability | $ 39 | $ 46 |
Fair Value Information (Fair Va
Fair Value Information (Fair Value Of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Carrying (Reported) Amount, Fair Value Disclosure | Fair Value, Inputs, Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents(a) | [1] | $ 835 | $ 923 |
Time Deposits and other | [2] | 114 | 138 |
Carrying (Reported) Amount, Fair Value Disclosure | Fair Value, Inputs, Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Short-term debt(c) | [3] | 368 | 170 |
Long-term debt(d) | [4] | 7,385 | 7,402 |
Estimated Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents(a) | [1] | 835 | 923 |
Time Deposits and other | [2] | 114 | 138 |
Estimated Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Short-term debt(c) | [3] | 368 | 170 |
Long-term debt(d) | [4] | $ 7,840 | $ 7,886 |
[1] | 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. | ||
[2] | 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. Other, included in other current assets, is composed of funds held in escrow. Time deposits and other are recorded at cost, which approximates fair value. | ||
[3] | 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. | ||
[4] | 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. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Earnings Per Share [Abstract] | ||
Common shares outstanding | 355.2 | 360.2 |
Earnings Per Share (Average Com
Earnings Per Share (Average Common Shares Outstanding Basic And Diluted) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Average Common Shares Outstanding Basic and Diluted | ||
Basic | 356 | 360.7 |
Dilutive effect of stock options and restricted share unit awards | 2.6 | 2.7 |
Diluted | 358.6 | 363.4 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)shares | |
Equity, Class of Treasury Stock | |
Repurchased shares | shares | 2.4 |
Repurchased shares, total cost | $ | $ 300 |
Stockholders' Equity (Component
Stockholders' Equity (Components Of Stockholders' Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Kimberly-Clark Corporation | $ 136 | $ (102) |
Noncontrolling Interests | 226 | $ 219 |
Parent | ||
Increase (Decrease) in Stockholders' Equity | ||
Net Income | 563 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 230 | |
Stock-based awards exercised or vested | 78 | |
Recognition of stock-based compensation | 20 | |
Stock Repurchased During Period, Value | 310 | |
Dividends declared | (345) | |
Other | 2 | |
Noncontrolling Interests | ||
Increase (Decrease) in Stockholders' Equity | ||
Net Income | 10 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 19 | |
Stock-based awards exercised or vested | 0 | |
Recognition of stock-based compensation | 0 | |
Stock Repurchased During Period, Value | 0 | |
Dividends declared | (21) | |
Other | $ (1) |
Stockholders' Equity (Compone26
Stockholders' Equity (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Unrealized currency translation adjustments | $ 267 | $ 208 | |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (2) | (6) | |
Other | (16) | (19) | |
Parent | Pension Plan | |||
Defined benefit and other postretirement benefit plans - Beginning balance | (1,097) | (1,013) | |
Other comprehensive income/(loss) before reclassifications | 11 | (12) | |
(Income)/loss reclassified from AOCI | [1] | 9 | 7 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (2) | (5) | |
Defined benefit and other postretirement benefit plans - Ending balance | (1,099) | (1,018) | |
Parent | Other Postretirement Benefit Plans, Defined Benefit | |||
Defined benefit and other postretirement benefit plans - Beginning balance | (31) | (3) | |
Other comprehensive income/(loss) before reclassifications | 0 | 0 | |
(Income)/loss reclassified from AOCI | 0 | 0 | |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | 0 | |
Defined benefit and other postretirement benefit plans - Ending balance | (31) | (3) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||
Cash flow hedge and other - Beginning balance | 5 | (10) | |
Other comprehensive income/(loss) before reclassifications | (15) | (13) | |
Income/loss reclassified from AOCI | (1) | (6) | |
Other | (16) | (19) | |
Cash flow hedge and other - Ending balance | (11) | (29) | |
Unrealized Translation | |||
Unrealized translation - Beginning balance | (2,351) | (2,252) | |
Other comprehensive income/(loss) before reclassifications | 248 | 200 | |
(Income)/loss reclassified from AOCI | 0 | 0 | |
Unrealized currency translation adjustments | 248 | 200 | |
Unrealized translation - Ending balance | $ (2,103) | $ (2,052) | |
[1] | (a)Included in computation of net periodic pension costs. |
Objectives And Strategies For27
Objectives And Strategies For Using Derivatives (Narratives) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) | ||
Fair value hedge ineffectiveness assertion | Fair value hedges resulted in no significant ineffectiveness in the three months ended March 31, 2017 and 2016 | |
Gain (loss) recognized in earnings as a result of hedge not qualifying as a fair value hedge | $ 0 | $ 0 |
Cash flow hedge ineffectiveness assertion | Cash flow hedges resulted in no significant ineffectiveness for the three months ended March 31, 2017 and 2016 | |
Gain (loss) reclassified into earnings as a result of discontinuance of cash flow hedges | $ 0 | 0 |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) | ||
Aggregate notional values of outstanding derivatives | 1,800,000,000 | |
Gain (loss) on undesignated foreign exchange hedging instruments | (3,000,000) | $ 28,000,000 |
Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Aggregate notional values of outstanding derivatives | $ 112,000,000 | |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Derivative, Maturity Date | Apr. 26, 2019 | |
Cash Flow Hedging | Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) | ||
Aggregate notional values of outstanding derivatives | $ 740,000,000 | |
Cash Flow Hedging | Interest Rate Contract | ||
Derivative Instruments, Gain (Loss) | ||
Aggregate notional values of outstanding derivatives | $ 550,000,000 |
Objectives And Strategies For28
Objectives And Strategies For Using Derivatives Summary of total and undesignated fair values of derivative instruments (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative | ||
Assets | $ 31 | $ 43 |
Liabilities | 39 | 46 |
Foreign currency exchange contracts | ||
Derivative | ||
Assets | 29 | 38 |
Liabilities | 28 | 44 |
Interest rate contracts | ||
Derivative | ||
Assets | 0 | 0 |
Liabilities | 9 | 0 |
Commodity price contracts | ||
Derivative | ||
Assets | 2 | 5 |
Liabilities | $ 2 | $ 2 |
Description Of Business Segme29
Description Of Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Net Sales | $ 4,483 | $ 4,476 | |
Sales Revenue, Net, Percent Change | 0.20% | ||
Operating Profit (Loss) | $ 834 | 804 | |
Other (income) and expense, net | [1] | $ 5 | 10 |
Other Operating Income (Expense), Net, Percent Change | (50.00%) | ||
Operating Income (Loss), Percent Change | 3.70% | ||
Personal Care | |||
Net Sales | $ 2,250 | 2,207 | |
Sales Revenue, Net, Percent Change | 1.90% | ||
Operating Profit (Loss) | $ 481 | 449 | |
Operating Income (Loss), Percent Change | 7.10% | ||
Consumer Tissue | |||
Net Sales | $ 1,455 | 1,496 | |
Sales Revenue, Net, Percent Change | (2.70%) | ||
Operating Profit (Loss) | $ 275 | 280 | |
Operating Income (Loss), Percent Change | (1.80%) | ||
K-C Professional | |||
Net Sales | $ 768 | 763 | |
Sales Revenue, Net, Percent Change | 0.70% | ||
Operating Profit (Loss) | $ 146 | 150 | |
Operating Income (Loss), Percent Change | (2.70%) | ||
Corporate and Other | |||
Net Sales | $ 10 | 10 | |
Operating Profit (Loss) | [1] | $ (63) | $ (65) |
[1] | (a) Corporate & Other and Other (income) and expense, net include expenses not associated with the business segments, including charges as indicated in the Non-GAAP Reconciliations. |
Supplemental Balance Sheet Da30
Supplemental Balance Sheet Data - Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Raw materials | $ 336 | $ 329 |
Work in process | 201 | 203 |
Finished goods | 1,064 | 1,030 |
Supplies and other | 290 | 280 |
Inventory, Gross | 1,891 | 1,842 |
Excess of FIFO or weighted-average cost over LIFO cost | (163) | (163) |
Total | 1,728 | 1,679 |
LIFO | ||
Raw materials | 91 | 93 |
Work in process | 113 | 114 |
Finished goods | 444 | 430 |
Supplies and other | 0 | 0 |
Inventory, Gross | 648 | 637 |
Excess of FIFO or weighted-average cost over LIFO cost | (163) | (163) |
Total | 485 | 474 |
Non-LIFO | ||
Raw materials | 245 | 236 |
Work in process | 88 | 89 |
Finished goods | 620 | 600 |
Supplies and other | 290 | 280 |
Inventory, Gross | 1,243 | 1,205 |
Excess of FIFO or weighted-average cost over LIFO cost | 0 | 0 |
Total | $ 1,243 | $ 1,205 |
Supplemental Balance Sheet Da31
Supplemental Balance Sheet Data - Property Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment | ||
Land | $ 170 | $ 163 |
Buildings | 2,679 | 2,612 |
Machinery and equipment | 13,914 | 13,591 |
Construction in progress | 428 | 488 |
Property, Plant and Equipment, Gross | 17,191 | 16,854 |
Less accumulated depreciation | (9,940) | (9,685) |
Total | $ 7,251 | $ 7,169 |