Kimberly-Clark 2009 Annual Report Download

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2009 Annual Report on Form 10-K

Table of contents

  • Page 1
    2009 Annual Report on Form 10-K

  • Page 2
    ... ACT OF 1934 For the fiscal year ended December 31, 2009 OR ' TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-225 KIMBERLY-CLARK CORPORATION (Exact name of registrant as specified in its charter...

  • Page 3
    ... with Accountants on Accounting and Financial Disclosure ...Item 9A. Controls and Procedures ...Item 9B. Other Information ...Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder...

  • Page 4
    ... of the Corporation's worldwide Personal Care, Consumer Tissue, K-C Professional & Other and Health Care operations. These strategies include global plans for branding and product positioning, technology, research and development programs, cost reductions including supply chain management, and...

  • Page 5
    ..., Kotex, Lightdays, Depend, Poise and other brand names. The Consumer Tissue segment manufactures and markets facial and bathroom tissue, paper towels, napkins and related products for household use. Products in this segment are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle...

  • Page 6
    ... research and development expense was $301 million in 2009, $297 million in 2008 and $277 million in 2007. Foreign Market Risks The Corporation operates and markets its products globally, and its business strategy includes targeted growth in Asia, Latin America, the Middle East and Eastern Europe...

  • Page 7
    ...'s financial results. The Corporation competes in intensely competitive markets against well-known, branded products and private label products both domestically and internationally. Inherent risks in the Corporation's competitive strategy include uncertainties concerning trade and consumer...

  • Page 8
    ... a worldwide basis, the Corporation supplies approximately 8 percent of its virgin fiber needs from internal pulp manufacturing operations. A number of the Corporation's products, such as diapers, training and youth pants, incontinence care products, disposable wipes and various health care products...

  • Page 9
    ... services. Ongoing volatility in global commodity, currency and financial markets resulted in uncertainty in the business environment in 2009, which is expected to continue into 2010. The Corporation relies on access to the credit markets, specifically the commercial paper and public bond markets...

  • Page 10
    ...Venezuela on the Corporation's financial results in 2009 and 2010. In addition, intense competition in European personal care and tissue markets, and the challenging economic, political and competitive environments in Latin America, Eastern Europe and Asia may slow the Corporation's sales growth and...

  • Page 11
    ..., sales, payments to the Corporation's vendors, employees, and others, and the Corporation's ability to report financial and management information on a timely and accurate basis. Administrative functions transferred to third-party service providers include certain information technology; 8

  • Page 12
    ...: Number of Facilities Tissue, including consumer tissue and K-C Professional & Other products ...Personal Care ...Health Care ... 66 50 11 Management believes that the Corporation's and its equity affiliates' facilities are suitable for their purpose, adequate to support their businesses and...

  • Page 13
    ... Corporation have included overseeing its businesses in Asia, Latin America, Eastern Europe, the Middle East and Africa, as well as operations and major project management in North America. He was appointed Vice President-North American Diaper Operations in 1992; Managing Director of Kimberly-Clark...

  • Page 14
    ... Human Resources from 2001 to 2002. She is a director of Louisiana Pacific Corporation. Thomas J. Mielke, 51, was elected Senior Vice President-Law and Government Affairs and Chief Compliance Officer in 2007. His responsibilities include the Corporation's legal affairs, internal audit and government...

  • Page 15
    ... Vice President Research, Development & Engineering in the Away From Home sector in 1996; Vice President, Wiper Business in 1998; Vice President, European Operations, Engineering, Supply Chain in the K-C Professional sector in 2000; President, KCP Europe in 2002; President, KCP North America in 2003...

  • Page 16
    ... cash investments. Kimberly-Clark common stock is listed on the New York Stock Exchange. The ticker symbol is KMB. As of February 12, 2010, the Corporation had 28,633 holders of record of its common stock. For information relating to securities authorized for issuance under equity compensation plans...

  • Page 17
    ... Note 2 to the Consolidated Financial Statements. (b) The Corporation's share of net income includes a gain of approximately $46 million from the sale by Kimberly-Clark de Mexico, S.A.B. de C.V. of its pulp and paper business. (c) The Corporation recorded a pretax asset retirement obligation of $24...

  • Page 18
    .... The Corporation's products are sold under such well-known brands as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend. The Corporation has four reportable global business segments: Personal Care; Consumer Tissue; K-C Professional & Other; and Health Care. These global business segments are...

  • Page 19
    ... and strategic marketing spending in 2008 and 2009 to support new product introductions, further build brand equity and enable competitive pricing in order to protect the position of the Corporation's products in the market. We expect competition to continue to be intense in 2010. • Market shares...

  • Page 20
    ... II (Continued) Analysis of Consolidated Net Sales By Business Segment Year Ended December 31 2009 2008 2007 (Millions of dollars) Personal Care ...Consumer Tissue ...K-C Professional & Other ...Health Care ...Corporate & Other ...Intersegment sales ...Consolidated ... $ 8,365 $ 8,272 $ 7,563 6,409...

  • Page 21
    ... increase was driven by growth of Huggies diapers in Central Europe and in the Corporation's four core markets-the U.K., France, Italy and Spain. In K-C's international operations in Asia, Latin America, the Middle East, Eastern Europe and Africa, net sales increased about 5 percent driven by a more...

  • Page 22
    ... sales slowed and some consumers traded down to lower-priced product offerings. In Europe, personal care net sales were even with the prior year as favorable currency effects offset lower sales volumes and net selling prices. Sales volumes of Huggies diapers in the Corporation's four core markets...

  • Page 23
    ... surgical supplies in North America and Europe. • Analysis of Consolidated Operating Profit By Business Segment Year Ended December 31 2009 2008 2007 (Millions of dollars) Personal Care ...Consumer Tissue ...K-C Professional & Other ...Health Care ...Other income and (expense), net ...Corporate...

  • Page 24
    ... Latin America, the Middle East, Eastern Europe and Africa increased as higher net selling prices and materials and other cost deflation were partially offset by increased marketing expenses, unfavorable currency effects and lower sales volumes. Operating profit for K-C Professional & Other products...

  • Page 25
    ... profit for the health care segment increased 70.6 percent. The benefit of higher sales volumes, materials cost deflation, manufacturing production efficiencies and cost savings were partially offset by higher selling expenses, as a result of the I-Flow acquisition, and lower net selling prices...

  • Page 26
    .... Consumer tissue segment operating profit decreased 14.4 percent. Increased net selling prices and cost savings were more than offset by cost inflation, the lower sales volumes and higher manufacturing costs, including the effect of planned production downtime. Operating profit in North America...

  • Page 27
    PART II (Continued) • The Corporation's share of net income of equity companies declined by $2 million primarily due to unfavorable currency effects affecting the Corporation's investment in Kimberly-Clark de Mexico, S.A.B. de C.V. ("KCM"). Despite higher selling prices and sales volumes, KCM's ...

  • Page 28
    ... and Capital Resources Year Ended December 31 2009 2008 (Millions of dollars) Cash provided by operations ...Capital spending ...Acquisitions of businesses, net of cash acquired ...Ratio of total debt and redeemable securities to capital(a) ...Pretax interest coverage-times ...(a) Capital is...

  • Page 29
    ...'s global business plan strategy to invest in the higher-growth, higher-margin medical device market. See Item 8, Note 6 to the Consolidated Financial Statements for a discussion of these acquisitions. Financing Commentary: • • At December 31, 2009, total debt and redeemable securities was...

  • Page 30
    ... to the Corporation's 2010 net income. Management believes that the Corporation's ability to generate cash from operations and its capacity to issue short-term and long-term debt are adequate to fund working capital, capital spending, payment of dividends, pension plan contributions and other...

  • Page 31
    ..., investment opportunities, and customary business practices in these countries. Nonqualified U.S. plans providing pension benefits in excess of limitations imposed by the U.S. income tax code are not funded. Consolidated pension expense for defined benefit pension plans was $251 million in 2009...

  • Page 32
    ... other assumptions. Pension expense beyond 2010 will depend on future investment performance, the Corporation's contributions to the pension trusts, changes in discount rates and various other factors related to the covered employees in the plans. If the expected long-term rates of return on assets...

  • Page 33
    ... unfunded health care and life insurance benefit plans. Certain benefits are based on years of service and/or age at retirement. The plans are principally noncontributory for employees who were eligible to retire before 1993, contributory for most employees who retire after 1992, and the Corporation...

  • Page 34
    ...the Corporation's businesses and is based on a discounted cash flow approach to determine the fair value of each operating segment. The determination of fair value requires significant management judgment including estimating future sales volumes, selling prices and costs, changes in working capital...

  • Page 35
    ... are considered by management to be invested indefinitely. However, they would be subject to income tax if they were remitted as dividends, were lent to the Corporation or a U.S. affiliate, or if the Corporation were to sell its stock in the subsidiaries. It is not practicable to determine the...

  • Page 36
    ... of acquisitions, cost savings, changes in finished product selling prices, anticipated raw material and energy costs, anticipated benefits related to the organization optimization initiative, cash flow levels, dividend amounts, anticipated financial and operating results, strategies, contingencies...

  • Page 37
    ...only for risk management purposes and not for speculation. All foreign currency derivative instruments are entered into with major financial institutions. The Corporation's credit exposure under these arrangements is limited to agreements with a positive fair value at the reporting date. Credit risk...

  • Page 38
    ... cash flows. Commodity Price Risk The Corporation is subject to commodity price risk, the most significant of which relates to the price of pulp. Selling prices of tissue products are influenced, in part, by the market price for pulp, which is determined by industry supply and demand. On a worldwide...

  • Page 39
    ... FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT Year Ended December 31 2009 2008 2007 (Millions of dollars, except per share amounts) Net Sales ...Cost of products sold ...Gross Profit ...Marketing, research and general expenses...

  • Page 40
    ... Employee Benefits ...Long-Term Income Taxes Payable ...Deferred Income Taxes ...Other Liabilities ...Redeemable Preferred and Common Securities of Subsidiaries ...Stockholders' Equity Kimberly-Clark Corporation Stockholders' Equity: Preferred stock-no par value-authorized 20.0 million shares...

  • Page 41
    ... ...- Income tax benefits on stock-based compensation ...- Shares repurchased ...- Recognition of stock-based compensation ...- Dividends declared ...- Additional investment in subsidiary and other ...- Adoption of uncertain tax positions accounting standard ...- Balance at December 31, 2007 ...478...

  • Page 42
    ...) KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year Ended December 31 2009 2008 2007 (Millions of dollars) Net Income ...Other Comprehensive Income, Net of Tax: Unrealized currency translation adjustments ...Employee postretirement benefits ...Other...

  • Page 43
    ...) KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENT Year Ended December 31 2009 2008 2007 (Millions of dollars) Operating Activities Net Income ...Extraordinary loss, net of income taxes, attributable to Kimberly-Clark Corporation ...Depreciation and amortization ...Stock...

  • Page 44
    ... Financial Statements present the accounts of Kimberly-Clark Corporation and all subsidiaries in which it has a controlling financial interest (the "Corporation") as if they were a single economic entity in conformity with accounting principles generally accepted in the United States of America...

  • Page 45
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Estimated useful lives are periodically reviewed and, when warranted, changes are made to them. Longlived assets, including computer software, are reviewed for impairment whenever events or changes in ...

  • Page 46
    ...AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Revenue Recognition Sales revenue for the Corporation and its reportable business segments is recognized at the time of product shipment or delivery, depending on when title passes, to unaffiliated customers, and when all of the...

  • Page 47
    ... to impairment accounting, rather than expense these values at the acquisition date. Adoption of these requirements did not have a material effect on the Corporation's consolidated financial statements. Also, effective January 1, 2009, as required: • The Corporation adopted new FASB guidance...

  • Page 48
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) • • The Corporation expanded disclosures about derivative instruments and hedging activities. See Note 12. Certain share-based payment awards entitled to nonforfeitable dividends or dividend ...

  • Page 49
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) In June 2009, the FASB revised the requirements for when a company must consolidate a variable interest entity ("VIE") in which that company has an interest. Under the new requirement, a company must ...

  • Page 50
    ...value of the Notes, the Corporation recorded an after-tax extraordinary charge of $8 million on its Consolidated Income Statement for the period ended June 30, 2008. Prior period financial statements have not been adjusted to reflect the consolidation of the Financing Entities. The maturity dates of...

  • Page 51
    ... for a period of time sufficient to allow for an anticipated recovery of fair value to the cost of such securities. Level 2 Fair Values-The fair value of the COLI policies is derived from investments in a mix of money market, fixed income and equity funds managed by unrelated fund managers. The fair...

  • Page 52
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Level 3 Fair Values-The fair value of certain available-for-sale securities acquired in the fourth quarter of 2009 is based on quoted market prices for the exchange-traded securities, adjusted to ...

  • Page 53
    ... Corporation's international operations in Asia, Latin America, the Middle East, Eastern Europe and Africa. The net charges are included in the following income statement captions: Year Ended December 31, 2009 (Millions of dollars) Cost of products sold ...Marketing, research and general expenses...

  • Page 54
    ...the Corporation to leverage its scale and capabilities in customer development and product supply to drive growth and profitability across its businesses. Goodwill The changes in the carrying amount of goodwill by business segment are as follows: Personal Care K-C Consumer Professional Health Tissue...

  • Page 55
    ... $500 million 7.5% Notes due November 1, 2018. The Corporation used the net proceeds to reduce borrowings under its commercial paper program. During the third quarter of 2007, the Corporation issued $450 million Floating Rate Notes due July 30, 2010; $950 million 6.125% Notes due August 1, 2017...

  • Page 56
    ... maintains the revolving credit facility to manage liquidity needs in the event its access to the commercial paper markets is constrained for any reason. The Corporation did not borrow any amounts under the revolving credit facility in 2009. Debt payable within one year is as follows: December...

  • Page 57
    ...and restricted share units to employees and outside directors. As of December 31, 2009, the number of shares of stock available for grants under the Plans aggregated 14.9 million shares. Stock options are granted at an exercise price equal to the market value of the Corporation's common stock on the...

  • Page 58
    ... the outside director retires from or otherwise terminates service on the Corporation's Board. At the time stock options are exercised or restricted shares and restricted share units become payable, common stock is issued from the Corporation's accumulated treasury shares. Cash dividends are paid...

  • Page 59
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) A summary of stock-based compensation under the Plans as of December 31, 2009 and the activity during the year then ended is presented below: WeightedAverage Exercise Price WeightedAverage Remaining ...

  • Page 60
    ... health care and life insurance benefit plans. Certain benefits are based on years of service and/or age at retirement. The plans are principally noncontributory for employees who were eligible to retire before 1993 and contributory for most employees who retire after 1992, and the Corporation...

  • Page 61
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Summarized financial information about postretirement plans, excluding defined contribution retirement plans, is presented below: Pension Benefits Other Benefits Year Ended December 31 2009 2008 2009 ...

  • Page 62
    ... Obligations at December 31 Pension Benefits 2009 2008 Other Benefits 2009 2008 Discount rate ...Rate of compensation increase ... 5.85% 4.09% 6.40% 5.79% 6.50% 3.94% - - Expected Long-Term Rate of Return and Investment Strategies for the Principal Plans Strategic asset allocation decisions are...

  • Page 63
    ... of the Corporation's defined benefit pension trusts execute hedging strategies to manage the price risk applicable to equity investments. These strategies are designed to limit the downside exposure of equity investments by trading off upside potential above an acceptable level. In 2009, zero-cost...

  • Page 64
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Set forth below are the pension plan assets of the Principal Plans measured at fair value as of December 31, 2009, together with the inputs used to develop those fair value measurements. Fair Value ...

  • Page 65
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Equity securities held directly by the pension trusts and those held through units in pooled funds are monitored as to issuer and industry. Except for U.S. Treasuries, concentrations of fixed income ...

  • Page 66
    ... the compensation of covered employees. The Corporation's contributions, all of which were charged to expense, were $61 million in both 2009 and 2008, and $56 million in 2007. Voluntary contribution investment plans are provided to substantially all North American and most European employees. Under...

  • Page 67
    ... ...Stock-based awards ...Income tax benefits on stock-based compensation ...Shares repurchased ...Recognition of stock-based compensation ...Dividends declared ...Additional investment in subsidiary and other ...Return on noncontrolling interests ...Adoption of uncertain tax positions accounting...

  • Page 68
    ... awards ...Income tax benefits on stock-based compensation ...Shares repurchased ...Recognition of stock-based compensation ...Dividends declared ...Additional investment in subsidiary and other ...Return on redeemable preferred securities and noncontrolling interests ...Balance at December 31, 2009...

  • Page 69
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Accumulated Other Comprehensive Income (Loss) The changes in the components of accumulated other comprehensive income (loss) attributable to the Corporation are as follows: Year Ended December 31 2009 ...

  • Page 70
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The detailed statement of other comprehensive income (loss) for 2009 is presented below: Year Ended December 31, 2009 Pretax Tax Net Amount Effect Amount (Millions of dollars) Unrealized translation ...

  • Page 71
    ..., the Corporation is exposed to risks, such as changes in foreign currency exchange rates, interest rates, commodity prices and certain investments in its defined benefit pension plans. A variety of practices are employed to manage these risks, including operating and financing activities and...

  • Page 72
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Foreign Currency Exchange Risk Management The Corporation has a centralized U.S. dollar functional currency international treasury operation ("InHouse Bank") that manages foreign currency exchange ...

  • Page 73
    ... FINANCIAL STATEMENTS-(Continued) anticipated underlying U.S. Treasury interest rate related to issuance of 10-year debt). At December 31, 2009, outstanding forward-starting swaps with an aggregate notional value of $250 million were in place. Commodity Price Risk Management The Corporation...

  • Page 74
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Quantitative Information about the Corporation's Use of Derivative Instruments The following tables display the location and fair values of derivative instruments presented in the Consolidated Balance ...

  • Page 75
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Fair Values of Derivative Instruments Asset Derivatives at December 31 2009 2008 Balance Sheet Fair Balance Sheet Location Value Location (Millions of dollars) Fair Value Derivatives designated as ...

  • Page 76
    ... to provide cash flow to support debt payments. The Corporation accounts for its interests in its nonconsolidated real estate entities by the equity method of accounting, and has accounted for the related income tax credits and other tax benefits as a reduction in its income tax provision. As...

  • Page 77
    ... payments on the above-mentioned leases and purchase commitments, its exposure to losses, if any, under these arrangements is not material. Note 15. Contingencies and Legal Matters Contingency One of the Corporation's North American tissue mills has an agreement to provide its local utility company...

  • Page 78
    ... Water Quality Authority ("Delcora"). Also in May 2007, Delcora initiated an administrative action against the Corporation. Delcora is a public agency that operates a sewerage system and a wastewater treatment facility serving industrial and municipal customers, including Kimberly-Clark's Chester...

  • Page 79
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The effects of the credits are shown separately in the reconciliation of the U.S. statutory rate to its effective income tax rate in Note 17. Note 17. Income Taxes An analysis of the provision for ...

  • Page 80
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Deferred income tax assets (liabilities) are composed of the following: December 31 2009 2008 (Millions of dollars) Net current deferred income tax asset attributable to: Accrued expenses ...Pension, ...

  • Page 81
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Realization of income tax loss carryforwards is dependent on generating sufficient taxable income prior to expiration of these carryforwards. Although realization is not assured, management believes it...

  • Page 82
    ... for the major jurisdictions where the Corporation conducts business: Jurisdiction Years United States ...United Kingdom ...Canada ...Korea ...Australia ... 2006 to 2009 2008 to 2009 2005 to 2009 2004 to 2009 2005 to 2009 The Corporation's U.S. federal income tax returns have been audited through...

  • Page 83
    ... 2010 net income. Note 20. Business Segment and Geographic Data Information The Corporation is organized into operating segments based on product groupings. These operating segments have been aggregated into four reportable global business segments: Personal Care; Consumer Tissue; K-C Professional...

  • Page 84
    ... of the Corporation's worldwide Personal Care, Consumer Tissue, K-C Professional & Other and Health Care operations. These strategies include global plans for branding and product positioning, technology, research and development programs, cost reductions including supply chain management, and...

  • Page 85
    ... companies, is presented in the following tables: Consolidated Operations by Business Segment Personal Care Consumer Tissue K-C InterProfessional Health segment & Other Care Sales (Millions of dollars) Corporate & Other Consolidated Total Net Sales 2009 ...2008 ...2007 ...Operating Profit(a) 2009...

  • Page 86
    ...27 million. Asia, Latin America & Europe Other (Millions of dollars) United States Total Corporate & Other 2008 ...2007 ...Equity Companies' Data Net Sales Gross Profit $ (47) (108) $(22) (32) $(3) (8) $ (72) (148) Operating Net Profit Income (Millions of dollars) Corporation's Share of Net...

  • Page 87
    ... FINANCIAL STATEMENTS-(Continued) Equity companies, primarily in Latin America, are principally engaged in operations in the Personal Care and Consumer Tissue businesses. At December 31, 2009, the Corporation's equity companies and ownership interest were as follows: Kimberly-Clark Lever Private...

  • Page 88
    ...Supplemental Cash Flow Statement Data Summary of Cash Flow Effects of Decrease (Increase) in Operating Working Capital(a) Year Ended December 31 2009 2008 2007 Accounts receivable ...$ (20) $ 148 $(192) Inventories ...523 (45) (439) Prepaid expenses ...(1) 13 (35) Trade accounts payable ...278 (43...

  • Page 89
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Note 22. Unaudited Quarterly Data Fourth Third 2009 2008 Second First Fourth Third Second (Millions of dollars, except per share amounts) First Net sales ...$4,982 Gross profit ...1,666 Operating ...

  • Page 90
    ... 1, 2009. The Corporation also adopted a new accounting standard for fair value measurements effective January 1, 2008. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Corporation's internal control over financial reporting...

  • Page 91
    ...2009. Internal Control Over Financial Reporting Management's Report on the Financial Statements Kimberly-Clark Corporation's management is responsible for all aspects of the business, including the preparation of the consolidated financial statements in this annual report. The consolidated financial...

  • Page 92
    ...the Board and Chief Executive Officer February 24, 2010 Changes in Internal Control Over Financial Reporting /s/ Mark A. Buthman Mark A. Buthman Senior Vice President and Chief Financial Officer There have been no changes in the Corporation's internal control over financial reporting identified in...

  • Page 93
    ...also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements and financial statement schedule of the Corporation as of and for the year ended December 31, 2009, and our report dated February 24, 2010, expressed...

  • Page 94
    ... the Corporation's adoption of new accounting standards for business combinations and noncontrolling interests in consolidated financial statements effective January 1, 2009, and for fair value measurements effective January 1, 2008. /s/ DELOITTE & TOUCHE LLP Deloitte & Touche LLP Dallas, Texas...

  • Page 95
    ...Executive Officers of the Registrant" in Part I of this Report. ITEM 11. EXECUTIVE COMPENSATION The information in the sections of the 2010 Proxy Statement captioned "Executive Compensation," "Compensation of Directors" under "Proposal 1. Election of Directors" and "Corporate Governance Information...

  • Page 96
    ... in the section of the 2010 Proxy Statement captioned "Security Ownership of Management and Certain Beneficial Owners" is incorporated in this Item 12 by reference. Equity Compensation Plan Information The following table gives information about the Corporation's common stock that may be issued upon...

  • Page 97
    ...with Related Persons" and "Corporate Governance Information-Director Independence" is incorporated in this Item 13 by reference. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES The information in the sections of the 2010 Proxy Statement captioned "Principal Accounting Firm Fees" and "Audit Committee...

  • Page 98
    ... Financial statement schedules. The following information is filed as part of this Form 10-K and should be read in conjunction with the financial statements contained in Item 8: Report of Independent Registered Public Accounting Firm Schedule for Kimberly-Clark Corporation and Subsidiaries: Schedule...

  • Page 99
    ... Excess Benefit Program, as amended and restated, dated December 31, 2008, incorporated by reference to Exhibit No. (10)j of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2008.* Kimberly-Clark Corporation Supplemental Retirement 401(k) and Profit Sharing Plan, as...

  • Page 100
    ... to Item 15(a)(3) of this Annual Report on Form 10-K. Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Income Statement for the years ended December 31, 2009, 2008 and 2007, (ii) Consolidated Balance Sheet...

  • Page 101
    .... KIMBERLY-CLARK CORPORATION February 24, 2010 By: /s/ MARK A. BUTHMAN Mark A. Buthman Senior Vice President and Chief Financial Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and...

  • Page 102
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007 (Millions of dollars) Balance at Beginning Of Period Additions Charged to Charged to Costs and Other Expenses Accounts(a) Deductions Write-Offs and ...

  • Page 103
    ... Dec07 S&P 500 INDEX Dec08 Dec09 KIMBERLY-CLARK CORPORATION S&P 500 CONSUMER STAPLES Indexed Returns Company Name/Index 2004 2005 Year Ended December 31 2006 2007 2008 2009 Kimberly-Clark Corporation ...S&P 500 Index ...S&P 500 Consumer Staples Index ...Investor Relations 100 100 100 93.31...

  • Page 104
    ... the Corporation's Securities and Exchange Commission filings, including Forms 10-K, 10-Q and 8-K. Stockholders may contact Stockholder Services, P.O. Box 612606, Dallas, Texas 75261-2606 or call 972-281-1522 to obtain a paper copy of these reports without charge. Dividends and Direct Stock Purchase...

  • Page 105
    ... Company Ian C. Read Management Development and Compensation Committee Nominating and Corporate Governance Committee Senior Vice President Pfizer, Inc. Linda Johnson Rice Audit Committee Chairman and Chief Executive Officer Johnson Publishing Company, Inc. Marc J. Shapiro Lead Director Executive...

  • Page 106
    Cert no. SCS-COC-000648 Kimberly-Clark Corporation World Headquarters P.O. Box 619100 Dallas, Texas 75261-9100 Toll-Free Investor Information: 800.639.1352 www.kimberly-clark.com