Delaware | 39-0394230 | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | o | |
Non-accelerated filer | o | Smaller reporting company | o | |
Emerging growth company | o |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
(Millions of dollars, except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Sales | $ | 4,582 | $ | 4,665 | $ | 13,917 | $ | 13,745 | ||||||||
Cost of products sold | 3,166 | 2,998 | 9,722 | 8,766 | ||||||||||||
Gross Profit | 1,416 | 1,667 | 4,195 | 4,979 | ||||||||||||
Marketing, research and general expenses | 749 | 807 | 2,599 | 2,449 | ||||||||||||
Other (income) and expense, net | (2 | ) | (8 | ) | 6 | — | ||||||||||
Operating Profit | 669 | 868 | 1,590 | 2,530 | ||||||||||||
Nonoperating expense | (30 | ) | (14 | ) | (75 | ) | (43 | ) | ||||||||
Interest income | 2 | 3 | 7 | 7 | ||||||||||||
Interest expense | (64 | ) | (78 | ) | (198 | ) | (246 | ) | ||||||||
Income Before Income Taxes and Equity Interests | 577 | 779 | 1,324 | 2,248 | ||||||||||||
Provision for income taxes | (138 | ) | (224 | ) | (380 | ) | (633 | ) | ||||||||
Income Before Equity Interests | 439 | 555 | 944 | 1,615 | ||||||||||||
Share of net income of equity companies | 23 | 24 | 80 | 79 | ||||||||||||
Net Income | 462 | 579 | 1,024 | 1,694 | ||||||||||||
Net income attributable to noncontrolling interests | (11 | ) | (12 | ) | (25 | ) | (33 | ) | ||||||||
Net Income Attributable to Kimberly-Clark Corporation | $ | 451 | $ | 567 | $ | 999 | $ | 1,661 | ||||||||
Per Share Basis | ||||||||||||||||
Net Income Attributable to Kimberly-Clark Corporation | ||||||||||||||||
Basic | $ | 1.30 | $ | 1.61 | $ | 2.86 | $ | 4.69 | ||||||||
Diluted | $ | 1.29 | $ | 1.60 | $ | 2.85 | $ | 4.66 | ||||||||
Cash Dividends Declared | $ | 1.00 | $ | 0.97 | $ | 3.00 | $ | 2.91 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
(Millions of dollars) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Income | $ | 462 | $ | 579 | $ | 1,024 | $ | 1,694 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | ||||||||||||||||
Unrealized currency translation adjustments | (79 | ) | 128 | (343 | ) | 450 | ||||||||||
Employee postretirement benefits | 22 | (8 | ) | 101 | (11 | ) | ||||||||||
Other | 3 | (9 | ) | 31 | (49 | ) | ||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | (54 | ) | 111 | (211 | ) | 390 | ||||||||||
Comprehensive Income | 408 | 690 | 813 | 2,084 | ||||||||||||
Comprehensive income attributable to noncontrolling interests | (10 | ) | (12 | ) | (14 | ) | (44 | ) | ||||||||
Comprehensive Income Attributable to Kimberly-Clark Corporation | $ | 398 | $ | 678 | $ | 799 | $ | 2,040 |
(Millions of dollars) | September 30, 2018 | December 31, 2017 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 494 | $ | 616 | ||||
Accounts receivable, net | 2,308 | 2,315 | ||||||
Inventories | 1,770 | 1,790 | ||||||
Other current assets | 536 | 490 | ||||||
Total Current Assets | 5,108 | 5,211 | ||||||
Property, Plant and Equipment, Net | 7,030 | 7,436 | ||||||
Investments in Equity Companies | 251 | 233 | ||||||
Goodwill | 1,480 | 1,576 | ||||||
Other Assets | 714 | 695 | ||||||
TOTAL ASSETS | $ | 14,583 | $ | 15,151 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Debt payable within one year | $ | 1,786 | $ | 953 | ||||
Trade accounts payable | 2,937 | 2,834 | ||||||
Accrued expenses | 1,735 | 1,730 | ||||||
Dividends payable | 347 | 341 | ||||||
Total Current Liabilities | 6,805 | 5,858 | ||||||
Long-Term Debt | 5,739 | 6,472 | ||||||
Noncurrent Employee Benefits | 993 | 1,184 | ||||||
Deferred Income Taxes | 504 | 395 | ||||||
Other Liabilities | 369 | 299 | ||||||
Redeemable Preferred Securities of Subsidiaries | 61 | 61 | ||||||
Stockholders' Equity (Deficit) | ||||||||
Kimberly-Clark Corporation | (133 | ) | 629 | |||||
Noncontrolling Interests | 245 | 253 | ||||||
Total Stockholders' Equity | 112 | 882 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 14,583 | $ | 15,151 |
Nine Months Ended September 30 | ||||||||
(Millions of dollars) | 2018 | 2017 | ||||||
Operating Activities | ||||||||
Net income | $ | 1,024 | $ | 1,694 | ||||
Depreciation and amortization | 652 | 540 | ||||||
Asset impairments | 74 | — | ||||||
Stock-based compensation | 45 | 64 | ||||||
Deferred income taxes | 44 | (41 | ) | |||||
Net losses on asset dispositions | 57 | 16 | ||||||
Equity companies' earnings in excess of dividends paid | (18 | ) | (12 | ) | ||||
Operating working capital | 117 | (154 | ) | |||||
Postretirement benefits | (87 | ) | (1 | ) | ||||
Other | 113 | (40 | ) | |||||
Cash Provided by Operations | 2,021 | 2,066 | ||||||
Investing Activities | ||||||||
Capital spending | (566 | ) | (595 | ) | ||||
Investments in time deposits | (218 | ) | (123 | ) | ||||
Maturities of time deposits | 139 | 70 | ||||||
Other | 13 | (29 | ) | |||||
Cash Used for Investing | (632 | ) | (677 | ) | ||||
Financing Activities | ||||||||
Cash dividends paid | (1,039 | ) | (1,017 | ) | ||||
Change in short-term debt | 453 | 111 | ||||||
Debt proceeds | — | 937 | ||||||
Debt repayments | (310 | ) | (972 | ) | ||||
Proceeds from exercise of stock options | 50 | 114 | ||||||
Acquisitions of common stock for the treasury | (596 | ) | (804 | ) | ||||
Other | (41 | ) | (49 | ) | ||||
Cash Used for Financing | (1,483 | ) | (1,680 | ) | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (28 | ) | 23 | |||||
Change in Cash and Cash Equivalents | (122 | ) | (268 | ) | ||||
Cash and Cash Equivalents - Beginning of Period | 616 | 923 | ||||||
Cash and Cash Equivalents - End of Period | $ | 494 | $ | 655 |
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||
Cost of products sold: | |||||||
Charges for workforce reductions | $ | 31 | $ | 156 | |||
Asset impairments | — | 74 | |||||
Asset write-offs | 16 | 102 | |||||
Incremental depreciation | 47 | 115 | |||||
Other exit costs | 9 | 18 | |||||
Total | 103 | 465 | |||||
Marketing, research and general expenses: | |||||||
Charges (adjustments) for workforce reductions | (13 | ) | 257 | ||||
Other exit costs | 39 | 84 | |||||
Total | 26 | 341 | |||||
Nonoperating expense(a) | 20 | 50 | |||||
Total charges | 149 | 856 | |||||
Provision for income taxes | (30 | ) | (197 | ) | |||
Net charges | 119 | 659 | |||||
Net impact related to equity companies and noncontrolling interests | — | (10 | ) | ||||
Net charges attributable to Kimberly-Clark Corporation | $ | 119 | $ | 649 |
(a) | Represents non-cash pension settlement charges resulting from restructuring actions. |
2018 | ||||
Restructuring liabilities at January 1 | $ | — | ||
Charges for workforce reductions and other cash exit costs | 512 | |||
Cash payments | (229 | ) | ||
Currency and other | (20 | ) | ||
Restructuring liabilities at September 30 | $ | 263 |
Fair Value Hierarchy Level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||
September 30, 2018 | December 31, 2017 | ||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents(a) | 1 | $ | 494 | $ | 494 | $ | 616 | $ | 616 | ||||||||
Time deposits(b) | 1 | 257 | 257 | 185 | 185 | ||||||||||||
Liabilities and redeemable securities of subsidiaries | |||||||||||||||||
Short-term debt(c) | 2 | 980 | 980 | 547 | 547 | ||||||||||||
Long-term debt(d) | 2 | 6,545 | 6,716 | 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. |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||
(Millions of shares) | 2018 | 2017 | 2018 | 2017 | ||||||||
Basic | 347.2 | 352.7 | 348.8 | 354.4 | ||||||||
Dilutive effect of stock options and restricted share unit awards | 1.6 | 2.1 | 1.6 | 2.3 | ||||||||
Diluted | 348.8 | 354.8 | 350.4 | 356.7 |
Stockholders' Equity (Deficit) Attributable to | ||||||||
The Corporation | Noncontrolling Interests | |||||||
Balance at December 31, 2017 | $ | 629 | $ | 253 | ||||
Net Income | 999 | 22 | ||||||
Other comprehensive loss, net of tax | (200 | ) | (10 | ) | ||||
Stock-based awards exercised or vested | 50 | — | ||||||
Recognition of stock-based compensation | 44 | — | ||||||
Shares repurchased | (621 | ) | — | |||||
Dividends declared | (1,046 | ) | (20 | ) | ||||
Other | 12 | — | ||||||
Balance at September 30, 2018 | $ | (133 | ) | $ | 245 |
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 | 439 | (34 | ) | (3 | ) | (55 | ) | |||||||||
(Income) loss reclassified from AOCI | — | 27 | (a) | (1 | ) | (a) | 6 | |||||||||
Net current period other comprehensive income (loss) | 439 | (7 | ) | (4 | ) | (49 | ) | |||||||||
Balance as of September 30, 2017 | $ | (1,912 | ) | $ | (1,104 | ) | $ | (35 | ) | $ | (44 | ) | ||||
Balance as of December 31, 2017 | $ | (1,864 | ) | $ | (976 | ) | $ | (39 | ) | $ | (40 | ) | ||||
Other comprehensive income (loss) before reclassifications | (333 | ) | 25 | 14 | 17 | |||||||||||
(Income) loss reclassified from AOCI | 1 | 63 | (a) | (1 | ) | (a) | 14 | |||||||||
Net current period other comprehensive income (loss) | (332 | ) | 88 | 13 | 31 | |||||||||||
Tax effects reclassified from AOCI | (18 | ) | (125 | ) | (5 | ) | (8 | ) | ||||||||
Balance as of September 30, 2018 | $ | (2,214 | ) | $ | (1,013 | ) | $ | (31 | ) | $ | (17 | ) |
(a) | Included in computation of net periodic benefit costs. |
• | 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. |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||
NET SALES | ||||||||||||||||||||||
Personal Care | $ | 2,252 | $ | 2,284 | -1 | % | $ | 6,816 | $ | 6,804 | — | |||||||||||
Consumer Tissue | 1,469 | 1,518 | -3 | % | 4,520 | 4,436 | +2 | % | ||||||||||||||
K-C Professional | 848 | 852 | — | 2,541 | 2,473 | +3 | % | |||||||||||||||
Corporate & Other | 13 | 11 | N.M. | 40 | 32 | N.M. | ||||||||||||||||
TOTAL NET SALES | $ | 4,582 | $ | 4,665 | -2 | % | $ | 13,917 | $ | 13,745 | +1 | % | ||||||||||
OPERATING PROFIT | ||||||||||||||||||||||
Personal Care | $ | 466 | $ | 482 | -3 | % | $ | 1,397 | $ | 1,443 | -3 | % | ||||||||||
Consumer Tissue | 212 | 265 | -20 | % | 668 | 790 | -15 | % | ||||||||||||||
K-C Professional | 160 | 175 | -9 | % | 483 | 490 | -1 | % | ||||||||||||||
Corporate & Other(a) | (171 | ) | (62 | ) | N.M. | (952 | ) | (193 | ) | N.M. | ||||||||||||
Other (income) and expense, net(a) | (2 | ) | (8 | ) | -75 | % | 6 | — | N.M. | |||||||||||||
TOTAL OPERATING PROFIT | $ | 669 | $ | 868 | -23 | % | $ | 1,590 | $ | 2,530 | -37 | % |
(a) | Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including charges related to the 2018 Global Restructuring Program. Restructuring charges related to the personal care, consumer tissue and K-C Professional business segments were $476, $194 and $112, respectively, for the nine months ended September 30, 2018. |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
(Billions of dollars) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Consumer tissue products | $ | 1.5 | $ | 1.5 | $ | 4.5 | $ | 4.4 | ||||||||
Baby and child care products | 1.6 | 1.6 | 4.7 | 4.7 | ||||||||||||
Away-from-home professional products | 0.8 | 0.9 | 2.5 | 2.5 | ||||||||||||
All other | 0.7 | 0.7 | 2.2 | 2.1 | ||||||||||||
Consolidated | $ | 4.6 | $ | 4.7 | $ | 13.9 | $ | 13.7 |
September 30, 2018 | December 31, 2017 | |||||||||||||||||||||||
LIFO | Non-LIFO | Total | LIFO | Non-LIFO | Total | |||||||||||||||||||
Raw materials | $ | 83 | $ | 252 | $ | 335 | $ | 87 | $ | 258 | $ | 345 | ||||||||||||
Work in process | 120 | 106 | 226 | 110 | 103 | 213 | ||||||||||||||||||
Finished goods | 450 | 664 | 1,114 | 421 | 684 | 1,105 | ||||||||||||||||||
Supplies and other | — | 279 | 279 | — | 303 | 303 | ||||||||||||||||||
653 | 1,301 | 1,954 | 618 | 1,348 | 1,966 | |||||||||||||||||||
Excess of FIFO or weighted-average cost over LIFO cost | (184 | ) | — | (184 | ) | (176 | ) | — | (176 | ) | ||||||||||||||
Total | $ | 469 | $ | 1,301 | $ | 1,770 | $ | 442 | $ | 1,348 | $ | 1,790 |
September 30, 2018 | December 31, 2017 | ||||||
Land | $ | 169 | $ | 173 | |||
Buildings | 2,786 | 2,830 | |||||
Machinery and equipment | 14,041 | 14,612 | |||||
Construction in progress | 503 | 300 | |||||
17,499 | 17,915 | ||||||
Less accumulated depreciation | (10,469 | ) | (10,479 | ) | |||
Total | $ | 7,030 | $ | 7,436 |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
• | Overview of Third Quarter 2018 Results |
• | Results of Operations and Related Information |
• | Liquidity and Capital Resources |
• | Business Outlook |
• | 2018 Global Restructuring Program - In 2018, we initiated this restructuring program to reduce our structural cost base by streamlining and simplifying our manufacturing supply chain and overhead organization. Results in 2018 include charges related to this program. See Note 2 to the consolidated financial statements for details. |
• | U.S. Tax Reform Related Matters - In the first and third quarters of 2018, we recorded adjustments associated with U.S. tax reform related matters. See Note 3 to the consolidated financial statements for details. |
• | Net sales of $4.6 billion decreased 2 percent compared to the year-ago period. Changes in foreign currency exchange rates reduced sales by 3 percent while organic sales increased 1 percent. |
• | Operating profit was $669 in 2018 and $868 in 2017. Net income attributable to Kimberly-Clark Corporation was $451 in 2018 compared to $567 in 2017, and diluted earnings per share were $1.29 in 2018 and $1.60 in 2017. Results in 2018 include charges related to the 2018 Global Restructuring Program. |
Selected Financial Results | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||
2018 | 2017 | Percent Change | 2018 | 2017 | Percent Change | ||||||||||||||||
Net Sales: | |||||||||||||||||||||
North America | $ | 2,407 | $ | 2,428 | -1 | % | $ | 7,139 | $ | 7,131 | — | ||||||||||
Outside North America | 2,252 | 2,311 | -3 | % | 7,009 | 6,853 | +2 | % | |||||||||||||
Intergeographic sales | (77 | ) | (74 | ) | N.M. | (231 | ) | (239 | ) | N.M. | |||||||||||
Total Net Sales | 4,582 | 4,665 | -2 | % | 13,917 | 13,745 | +1 | % | |||||||||||||
Operating Profit: | |||||||||||||||||||||
North America | 561 | 603 | -7 | % | 1,685 | 1,757 | -4 | % | |||||||||||||
Outside North America | 277 | 319 | -13 | % | 863 | 966 | -11 | % | |||||||||||||
Corporate & Other(a) | (171 | ) | (62 | ) | N.M. | (952 | ) | (193 | ) | N.M. | |||||||||||
Other (income) and expense, net(a) | (2 | ) | (8 | ) | -75 | % | 6 | — | N.M. | ||||||||||||
Total Operating Profit | 669 | 868 | -23 | % | 1,590 | 2,530 | -37 | % | |||||||||||||
Share of net income of equity companies | 23 | 24 | -4 | % | 80 | 79 | +1 | % | |||||||||||||
Net Income Attributable to Kimberly-Clark Corporation | 451 | 567 | -20 | % | 999 | 1,661 | -40 | % | |||||||||||||
Diluted Earnings per Share | 1.29 | 1.60 | -19 | % | 2.85 | 4.66 | -39 | % |
(a) | Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including adjustments as indicated in the Non-GAAP Reconciliations. |
Three Months Ended September 30, 2018 | ||||||||||||||||
As Reported | 2018 Global Restructuring Program | U.S. Tax Reform Related Matters | As Adjusted Non-GAAP | |||||||||||||
Cost of products sold | $ | 3,166 | $ | 103 | $ | — | $ | 3,063 | ||||||||
Gross Profit | 1,416 | (103 | ) | — | 1,519 | |||||||||||
Marketing, research and general expenses | 749 | 26 | — | 723 | ||||||||||||
Operating Profit | 669 | (129 | ) | — | 798 | |||||||||||
Nonoperating expense | (30 | ) | (20 | ) | — | (10 | ) | |||||||||
Provision for income taxes | (138 | ) | 30 | (26 | ) | (142 | ) | |||||||||
Effective tax rate | 23.9 | % | — | — | 19.6 | % | ||||||||||
Net Income Attributable to Kimberly-Clark Corporation | 451 | (119 | ) | (26 | ) | 596 | ||||||||||
Diluted Earnings per Share(a) | 1.29 | (0.34 | ) | (0.07 | ) | 1.71 |
Nine Months Ended September 30, 2018 | ||||||||||||||||
As Reported | 2018 Global Restructuring Program | U.S. Tax Reform Related Matters | As Adjusted Non-GAAP | |||||||||||||
Cost of products sold | $ | 9,722 | $ | 465 | $ | — | $ | 9,257 | ||||||||
Gross Profit | 4,195 | (465 | ) | — | 4,660 | |||||||||||
Marketing, research and general expenses | 2,599 | 341 | — | 2,258 | ||||||||||||
Operating Profit | 1,590 | (806 | ) | — | 2,396 | |||||||||||
Nonoperating expense | (75 | ) | (50 | ) | — | (25 | ) | |||||||||
Provision for income taxes | (380 | ) | 197 | (108 | ) | (469 | ) | |||||||||
Effective tax rate | 28.7 | % | — | — | 21.5 | % | ||||||||||
Share of net income of equity companies | 80 | (1 | ) | — | 81 | |||||||||||
Net income attributable to noncontrolling interests | (25 | ) | 11 | — | (36 | ) | ||||||||||
Net Income Attributable to Kimberly-Clark Corporation | 999 | (649 | ) | (108 | ) | 1,756 | ||||||||||
Diluted Earnings per Share | 2.85 | (1.85 | ) | (0.31 | ) | 5.01 |
Net Sales | Percent Change | Adjusted Operating Profit | Percent Change | |||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||
Volume | (1 | ) | 1 | Volume | (1 | ) | 1 | |||||||
Net Price | 1 | — | Net Price | 4 | (2 | ) | ||||||||
Mix/Other | 1 | 1 | Input Costs | (24 | ) | (23 | ) | |||||||
Acquisition | — | — | Cost Savings(c) | 17 | 15 | |||||||||
Currency | (3 | ) | — | Currency Translation | (2 | ) | — | |||||||
Total(a) | (2 | ) | 1 | Other(d) | (2 | ) | 4 | |||||||
Organic(b) | 1 | 1 | Total | (8 | ) | (5 | ) |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||
Net Sales | $ | 2,252 | $ | 2,284 | $ | 6,816 | $ | 6,804 | Operating Profit | $ | 466 | $ | 482 | $ | 1,397 | $ | 1,443 | |||||||||||||||||
Net Sales | Percent Change | Percent Change | Operating Profit | Percent Change | Percent Change | |||||||||||||||||||||||||||||
Volume | 1 | 1 | Volume | 4 | 2 | |||||||||||||||||||||||||||||
Net Price | — | (1 | ) | Net Price | (1 | ) | (7 | ) | ||||||||||||||||||||||||||
Mix/Other | 1 | 1 | Input Costs | (16 | ) | (13 | ) | |||||||||||||||||||||||||||
Acquisition | 1 | 1 | Cost Savings(c) | 16 | 14 | |||||||||||||||||||||||||||||
Currency | (4 | ) | (1 | ) | Currency Translation | (3 | ) | (1 | ) | |||||||||||||||||||||||||
Total(a) | (1 | ) | — | Other(d) | (3 | ) | 2 | |||||||||||||||||||||||||||
Organic(b) | 2 | — | Total | (3 | ) | (3 | ) |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||
Net Sales | $ | 1,469 | $ | 1,518 | $ | 4,520 | $ | 4,436 | Operating Profit | $ | 212 | $ | 265 | $ | 668 | $ | 790 | |||||||||||||||||
Net Sales | Percent Change | Percent Change | Operating Profit | Percent Change | Percent Change | |||||||||||||||||||||||||||||
Volume | (5 | ) | — | Volume | (13 | ) | (2 | ) | ||||||||||||||||||||||||||
Net Price | 2 | 1 | Net Price | 14 | 7 | |||||||||||||||||||||||||||||
Mix/Other | 1 | — | Input Costs | (35 | ) | (38 | ) | |||||||||||||||||||||||||||
Currency | (2 | ) | 1 | Cost Savings(c) | 18 | 16 | ||||||||||||||||||||||||||||
Total(a) | (3 | ) | 2 | Currency Translation | — | 1 | ||||||||||||||||||||||||||||
Other(d) | (4 | ) | 1 | |||||||||||||||||||||||||||||||
Organic(b) | (2 | ) | 1 | Total | (20 | ) | (15 | ) |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||
Net Sales | $ | 848 | $ | 852 | $ | 2,541 | $ | 2,473 | Operating Profit | $ | 160 | $ | 175 | $ | 483 | $ | 490 | |||||||||||||||||
Net Sales | Percent Change | Percent Change | Operating Profit | Percent Change | Percent Change | |||||||||||||||||||||||||||||
Volume | 1 | 1 | Volume | 1 | 2 | |||||||||||||||||||||||||||||
Net Price | — | — | Net Price | — | 1 | |||||||||||||||||||||||||||||
Mix/Other | 1 | 1 | Input Costs | (22 | ) | (18 | ) | |||||||||||||||||||||||||||
Currency | (2 | ) | 1 | Cost Savings(c) | 12 | 11 | ||||||||||||||||||||||||||||
Total(a) | — | 3 | Currency Translation | (1 | ) | 1 | ||||||||||||||||||||||||||||
Other(d) | 1 | 2 | ||||||||||||||||||||||||||||||||
Organic(b) | 1 | 2 | Total | (9 | ) | (1 | ) |
• | We expect net sales similar year-on-year (prior assumption reported in our second quarter Form 10-Q was similar, to up 1 percent). We anticipate changes in foreign currency exchange rates to have a 1 percent negative impact on net sales (previous estimate was neutral to 1 percent negative impact). |
• | We expect organic sales to increase approximately 1 percent. |
• | We expect adjusted operating profit to decline at the high end of, or slightly more than, the prior estimate for a decline of 2 to 5 percent. |
• | We expect inflation in key cost inputs in the upper half of the previously communicated $675 to $775 range. |
• | We expect currency effects somewhat more unfavorable than previously assumed. |
• | We expect the adjusted effective tax rate to be 21 to 22 percent (prior estimate was at the low end of the 23 to 26 percent target range). |
Item 4. | Controls and Procedures |
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 | |||||||||
July 1 to July 31 | 666,900 | $ | 105.73 | 21,498,418 | 18,501,582 | ||||||||
August 1 to August 31 | 494,600 | 114.71 | 21,993,018 | 18,006,982 | |||||||||
September 1 to September 30 | 396,926 | 115.37 | 22,389,944 | 17,610,056 | |||||||||
Total | 1,558,426 |
(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. |
(a) | Exhibits |
KIMBERLY-CLARK CORPORATION | ||
(Registrant) | ||
By: | /s/ Maria Henry | |
Maria Henry | ||
Senior Vice President and | ||
Chief Financial Officer | ||
(principal financial officer) | ||
By: | /s/ Michael T. Azbell | |
Michael T. Azbell | ||
Vice President and Controller | ||
(principal accounting officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Kimberly-Clark Corporation (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Thomas J. Falk | ||
Thomas J. Falk | ||
Chief Executive Officer | ||
October 22, 2018 |
1. | I have reviewed this quarterly report on Form 10-Q of Kimberly-Clark Corporation (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Maria Henry | ||
Maria Henry | ||
Chief Financial Officer | ||
October 22, 2018 |
(1) | the Form 10-Q, filed with the Securities and Exchange Commission on October 22, 2018 (“accompanied report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the accompanied report fairly presents, in all material respects, the financial condition and results of operations of Kimberly-Clark Corporation. |
/s/ Thomas J. Falk | ||
Thomas J. Falk | ||
Chief Executive Officer | ||
October 22, 2018 |
(1) | the Form 10-Q, filed with the Securities and Exchange Commission on October 22, 2018 (“accompanied report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the accompanied report fairly presents, in all material respects, the financial condition and results of operations of Kimberly-Clark Corporation. |
/s/ Maria Henry | ||
Maria Henry | ||
Chief Financial Officer | ||
October 22, 2018 |
Document And Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 15, 2018 |
|
Document And Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2018 | |
Entity Registrant Name | KIMBERLY CLARK CORP | |
Entity Central Index Key | 0000055785 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 346,300,915 |
Consolidated Income Statement - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Income Statement [Abstract] | ||||
Net Sales | $ 4,582 | $ 4,665 | $ 13,917 | $ 13,745 |
Cost of products sold | 3,166 | 2,998 | 9,722 | 8,766 |
Gross Profit | 1,416 | 1,667 | 4,195 | 4,979 |
Marketing, research and general expenses | 749 | 807 | 2,599 | 2,449 |
Other (income) and expense, net | (2) | (8) | 6 | 0 |
Operating Profit | 669 | 868 | 1,590 | 2,530 |
Nonoperating expense | (30) | (14) | (75) | (43) |
Interest income | 2 | 3 | 7 | 7 |
Interest expense | (64) | (78) | (198) | (246) |
Income Before Income Taxes and Equity Interests | 577 | 779 | 1,324 | 2,248 |
Provision for income taxes | (138) | (224) | (380) | (633) |
Income Before Equity Interests | 439 | 555 | 944 | 1,615 |
Share of net income of equity companies | 23 | 24 | 80 | 79 |
Net Income | 462 | 579 | 1,024 | 1,694 |
Net income attributable to noncontrolling interests | (11) | (12) | (25) | (33) |
Net Income Attributable to Kimberly-Clark Corporation | $ 451 | $ 567 | $ 999 | $ 1,661 |
Per Share Basis | ||||
Basic | $ 1.30 | $ 1.61 | $ 2.86 | $ 4.69 |
Diluted | 1.29 | 1.60 | 2.85 | 4.66 |
Cash Dividends Declared | $ 1.00 | $ 0.97 | $ 3.00 | $ 2.91 |
Consolidated Statement Of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 462 | $ 579 | $ 1,024 | $ 1,694 |
Other Comprehensive Income (Loss), Net of Tax | ||||
Unrealized currency translation adjustments | (79) | 128 | (343) | 450 |
Employee postretirement benefits | 22 | (8) | 101 | (11) |
Other | 3 | (9) | 31 | (49) |
Total Other Comprehensive Income (Loss), Net of Tax | (54) | 111 | (211) | 390 |
Comprehensive Income | 408 | 690 | 813 | 2,084 |
Comprehensive income attributable to noncontrolling interests | (10) | (12) | (14) | (44) |
Comprehensive Income Attributable to Kimberly-Clark Corporation | $ 398 | $ 678 | $ 799 | $ 2,040 |
Consolidated Balance Sheet - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Current Assets | ||
Cash and cash equivalents | $ 494 | $ 616 |
Accounts receivable, net | 2,308 | 2,315 |
Inventories | 1,770 | 1,790 |
Other current assets | 536 | 490 |
Total Current Assets | 5,108 | 5,211 |
Property, Plant and Equipment, Net | 7,030 | 7,436 |
Investments in Equity Companies | 251 | 233 |
Goodwill | 1,480 | 1,576 |
Other Assets | 714 | 695 |
TOTAL ASSETS | 14,583 | 15,151 |
Current Liabilities | ||
Debt payable within one year | 1,786 | 953 |
Trade accounts payable | 2,937 | 2,834 |
Accrued expenses | 1,735 | 1,730 |
Dividends payable | 347 | 341 |
Total Current Liabilities | 6,805 | 5,858 |
Long-Term Debt | 5,739 | 6,472 |
Noncurrent Employee Benefits | 993 | 1,184 |
Deferred Income Taxes | 504 | 395 |
Other Liabilities | 369 | 299 |
Redeemable Preferred Securities of Subsidiaries | 61 | 61 |
Stockholders' Equity (Deficit) | ||
Kimberly-Clark Corporation | (133) | 629 |
Noncontrolling Interests | 245 | 253 |
Total Stockholders' Equity | 112 | 882 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 14,583 | $ 15,151 |
Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
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 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, 2017. The terms "Corporation," "Kimberly-Clark," "K-C," "we," "our" and "us" refer to Kimberly-Clark Corporation and its consolidated subsidiaries. In prior years, we followed an accounting practice whereby costs associated with sales of K-C Professional dispensers were classified as a reduction in revenue, similar to sales incentives. Effective January 1, 2018, we changed this practice and now classify these costs as cost of products sold. This change resulted in an immaterial increase in net sales and cost of products sold and all applicable prior period amounts included in this filing have been recast accordingly. Annual Goodwill Impairment Assessment Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is not amortized, but rather is assessed for impairment annually and whenever events and circumstances indicate that impairment may have occurred. Impairment testing compares the reporting unit carrying amount, including goodwill, with its fair value. If the reporting unit carrying amount, including goodwill, exceeds its fair value, a goodwill impairment charge for the excess amount above fair value would be recorded. In our evaluation of goodwill impairment, we have the option to first assess qualitative factors such as macroeconomic, industry and competitive conditions, legal and regulatory environments, historical and projected financial performance, significant changes in the reporting unit and the magnitude of excess fair value over carrying amount from the previous quantitative impairment testing. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test using discounted cash flows to estimate fair value must be performed. On the other hand, if the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is more than its carrying value, then further quantitative testing is not required. For 2018, we completed the required annual assessment of goodwill for impairment for all of our reporting units using a qualitative assessment as of the first day of the third quarter, and determined that it is more likely than not that the fair value is more than the carrying amount for each of our reporting units. Adoption of Highly Inflationary Accounting in Argentina GAAP guidance requires the use of highly inflationary accounting for countries whose cumulative three-year inflation exceeds 100 percent. In the second quarter of 2018, published inflation indices indicated that the three-year cumulative inflation in Argentina exceeded 100 percent, and as of July 1, 2018, we elected to adopt highly inflationary accounting for our subsidiaries in Argentina (“K-C Argentina”). Under highly inflationary accounting, K-C Argentina’s functional currency became the U.S. dollar, and its income statement and balance sheet have been measured in U.S. dollars using both current and historical rates of exchange. The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net and was not material. As of September 30, 2018, K-C Argentina had a small net peso monetary position. Net sales of K-C Argentina were less than 2 percent of our consolidated net sales for the nine months ended September 30, 2018 and 2017. Recently Adopted Accounting Standards The Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This new standard permits entities to reclassify to retained earnings the tax effects stranded in accumulated other comprehensive income ("AOCI") as a result of U.S. tax reform. We early adopted this ASU as of April 1, 2018 and reclassified $156 of stranded tax effects related to the U.S. tax reform change in the federal corporate tax rate from AOCI to retained earnings. 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 (presented as "Nonoperating expense" in our consolidated income statement). We adopted this standard as of January 1, 2018 and applied the amendments retrospectively, and all applicable amounts included in this filing have been recast accordingly. We used the practical expedient that permits us to use the amounts previously disclosed in our employee postretirement benefits note for the prior comparative periods as the basis for applying the retrospective presentation requirements. 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. We adopted this ASU effective January 1, 2018 on a full retrospective basis. Adoption of this standard did not result in significant changes to our accounting policies, business processes, systems or controls, or have a material impact on our financial position, results of operations and cash flows or related disclosures. As such, prior period financial statements were not recast. We primarily generate revenue from the sale of finished products and recognize revenue at the time of product shipment or delivery, depending on when control passes. Rebate and promotion accruals are based on estimates of the quantity of customer sales. Promotion accruals also consider estimates of the number of consumer coupons that will be redeemed and timing and costs of activities within the promotional programs. The cost of promotion activities provided to customers is classified as a reduction in sales revenue. Under ASU No. 2014-09, effective January 1, 2018 for interim reporting, the estimated redemption value of consumer coupons and related expense are recorded when the related revenue from customers is recognized. In prior years, these costs were recognized at the time of coupon issuance. The impact of this change was not material. Accounting Standards Issued - Not Yet Adopted The FASB issued ASU No. 2016-02, Leases (Topic 842), amended by ASU 2018-11, Leases (Topic 842): Targeted Improvements. 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, along with additional disclosures. Current GAAP recognizes, measures and presents expenses and cash flows arising from a lease depending on its classification as a finance or operating lease. 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 a transition adoption election using either 1) a modified retrospective approach with periods prior to the adoption date being recast or 2) a prospective adoption approach with a cumulative-effect adjustment recognized to the opening balance of retained earnings on the adoption date with prior periods not recast. We anticipate adopting this standard on January 1, 2019 using the prospective adoption approach and electing the practical expedients allowed under the standard. We are in the process of aggregating and evaluating lease arrangements, and implementing new processes and a lease accounting system. At this time, we are unable to reasonably estimate the increase in total assets and total liabilities, which may be material. The impact on our results of operations and cash flows is not expected to be material. The FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The standard makes more financial and non-financial hedging strategies eligible for hedge accounting, amends the presentation and disclosure requirements and changes how companies assess effectiveness. For public companies, this ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We anticipate adopting this ASU as of January 1, 2019, on a prospective basis with no cumulative effect adjustment as historic ineffectiveness has been immaterial. The effects of this standard on our financial position, results of operations and cash flows are not expected to be material. The FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. The FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20). The new guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, with early adoption permitted, and is to be applied on a retrospective basis to all periods presented. The FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40). The new guidance reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). For public companies, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Implementation should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The effects of this standard on our financial position, results of operations or cash flows are not expected to be material. |
2018 Global Restructuring Program |
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2018 Global Restructuring Program | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure | 2018 Global Restructuring Program In January 2018, we announced the 2018 Global Restructuring Program to reduce our structural cost base by streamlining and simplifying our manufacturing supply chain and overhead organization. We expect to close or sell approximately 10 manufacturing facilities and expand production capacity at several others. We expect to exit or divest some lower-margin businesses that generate approximately 1 percent of our net sales. The sales are concentrated in our consumer tissue business segment. The restructuring is expected to impact our organizations in all major geographies. Workforce reductions are expected to be in the range of 5,000 to 5,500. Certain capital appropriations under the 2018 Global Restructuring Program are being finalized. Accounting for actions related to each appropriation will commence when the appropriation is authorized for execution. The restructuring is expected to be completed by the end of 2020, with total costs anticipated to be $1.7 billion to $1.9 billion pre-tax ($1.35 billion to $1.5 billion after tax). Cash costs are expected to be $900 to $1.0 billion, primarily related to workforce reductions. Non-cash charges are expected to be $800 to $900 pre-tax and will primarily consist of incremental depreciation and asset impairments. Restructuring charges in 2018 are expected to be $1.2 billion to $1.35 billion pre-tax ($950 to $1.05 billion after tax). The following charges were incurred in connection with the 2018 Global Restructuring Program:
The asset impairment charges were measured based on the excess of the carrying value of the impacted asset groups over their fair values. These fair values were measured by using discounted cash flows expected over the limited time the assets would remain in use and as a result, the assets were essentially written off. The use of discounted cash flows represents a level 3 measure under the fair value hierarchy. The following summarizes the restructuring liabilities activity:
As of September 30, 2018, restructuring liabilities of $138 are recorded in Accrued expenses and $125 are recorded in Other Liabilities. The impact related to restructuring charges is recorded in Operating working capital and Other Operating Activities, as appropriate, in our consolidated cash flow statement. |
U.S. Tax Reform |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act made changes to the U.S. tax code, which included (1) a reduced U.S. corporate tax rate from 35 percent to 21 percent, (2) implementation of a base erosion and anti-abuse tax, (3) general elimination of U.S. federal income taxes on dividends from foreign subsidiaries, (4) a new provision designed to tax global intangible low-taxed income ("GILTI") of foreign subsidiaries which allows for the possibility of utilizing foreign tax credits to offset the tax liability (subject to some limitations), (5) a lower effective U.S. tax rate on certain revenues from sources outside the U.S., and (6) a one-time transition tax on certain undistributed earnings of foreign subsidiaries. In the period ended December 31, 2017, we recorded a provisional discrete net tax benefit associated with the Tax Act and related matters. In the first quarter of 2018, we recorded discrete net tax expense of $82 primarily related to new guidance issued affecting tax benefits we recorded in fourth quarter 2017 for certain tax planning actions taken in anticipation of the Tax Act. In the third quarter of 2018, we recorded discrete net tax expense of $26 as a result of finalizing estimates related to the transition tax and remeasurement of deferred taxes. As of September 30, 2018, other amounts recorded for the Tax Act related to uncertain tax positions, valuation allowances, and foreign and U.S. state income taxes related to our reassessment of permanently reinvested earnings remain provisional. These estimates may be impacted by further analysis and future clarification and guidance regarding available tax accounting methods and elections, previously taxed earnings and profits computations, state tax conformity to federal tax changes and the impact of the GILTI provisions. At September 30, 2018, we were not able to reasonably estimate, and therefore have not recorded, deferred taxes for the GILTI provisions. We have not yet determined our policy election with respect to whether to record deferred taxes for basis differences expected to reverse as a result of the GILTI provisions in future periods or use the period cost method. We have, however, included an estimate of the current GILTI impact in our tax provision for 2018. |
Fair Value Information |
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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 nine months ended September 30, 2018 and for the full year 2017, 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 September 30, 2018 and December 31, 2017, derivative assets were $31 and $27, respectively, and derivative liabilities were $33 and $51, 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 values of hedging instruments used to manage foreign currency risk are 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 8. Redeemable preferred securities of subsidiaries are measured on a recurring basis at fair value and were $61 at both September 30, 2018 and December 31, 2017. 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 values of the remaining redeemable securities were based on a discounted cash flow valuation model. 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 $71 and $68 at September 30, 2018 and December 31, 2017, 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:
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Earnings Per Share |
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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:
The impact of 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 was insignificant. The number of common shares outstanding as of September 30, 2018 and 2017 was 346.6 million and 351.9 million, respectively. |
Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity (Deficit) Set forth below is a reconciliation for the nine months ended September 30, 2018 of the carrying amount of total stockholders' equity (deficit) from the beginning of the period to the end of the period.
During the nine months ended September 30, 2018, we repurchased 5.5 million shares at a total cost of $601 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 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 nine months ended September 30, 2018 was primarily due to the weakening of most foreign currencies versus the U.S. dollar, including the Brazilian real, Australian dollar and South Korean won. The changes in the components of AOCI attributable to Kimberly-Clark, net of tax, are as follows:
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Legal Matters |
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Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies | Legal Matters We are subject to various legal proceedings, claims and governmental inquiries, inspections, audits or investigations pertaining to issues such as contract disputes, product liability, tax matters, patents and trademarks, advertising, pricing, business practices, governmental regulations, employment and other matters. We are party to certain legal proceedings relating to our former healthcare business, Avanos Medical, Inc. ("Avanos", previously Halyard Health, Inc.), as described in our Form 10-K for the year ended December 31, 2017. During the first quarter of 2018, in the California consumer class action Bahamas Surgery Center v. Kimberly-Clark Corporation, et al., the Court reduced the punitive damages award against Kimberly- Clark from $350 to approximately $19. As a result, the total compensatory and punitive damages plus pre-judgment interest awarded against Kimberly-Clark is approximately $25. We intend to continue our vigorous defense of the Bahamas matter. As previously disclosed, we have received subpoena and document requests from the federal government relating to our former healthcare business, Avanos. In the third quarter of 2018, we received an additional subpoena from the United States Department of Justice (DOJ) regarding these investigations. The subpoenas concern allegations of potential criminal and civil violations of federal laws, including the Food, Drug, and Cosmetic Act, in connection with the manufacturing, marketing and sale of surgical gowns by our former healthcare business. We continue to produce documents and cooperate in this ongoing investigation. At this stage, we are unable to predict an outcome or estimate the potential range of outcomes to resolve this matter. Under the terms of the distribution agreement we entered into with Avanos in connection with the spin-off that occurred on October 31, 2014, Avanos is obligated to indemnify us for legal proceedings, claims and other liabilities primarily related to our former healthcare business. Avanos and Kimberly-Clark have each filed suits against the other seeking declaratory judgment regarding the scope of these indemnification obligations. We intend to vigorously pursue our case against Avanos and to vigorously defend their case against us. |
Objectives And Strategies For Using Derivatives |
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Sep. 30, 2018 | |
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 borrowings. A portion of our balance sheet translation exposure for certain affiliates, which results from changes in translation rates between the affiliates’ functional currencies and the U.S. dollar, is hedged with financial instruments. These instruments are designated as net investment hedges and have an aggregate notional value of $638 at September 30, 2018. Changes in fair value of net investment hedges are recorded in AOCI as part of the cumulative translation adjustment. At September 30, 2018 and December 31, 2017, derivative assets were $31 and $27, respectively, and derivative liabilities were $33 and $51, respectively, primarily comprised of foreign currency exchange contracts. 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 September 30, 2018, the aggregate notional value of outstanding interest rate contracts designated as fair value hedges was $300. Fair value hedges resulted in no significant ineffectiveness in the nine months ended September 30, 2018 and 2017, and gains or losses recognized in interest expense for interest rate swaps were not significant. For the nine months ended September 30, 2018 and 2017, no gains or losses were 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 September 30, 2018, 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 2018 and future periods. As of September 30, 2018, the aggregate notional values of outstanding foreign exchange and interest rate derivative contracts designated as cash flow hedges were $664 and $100, respectively. Cash flow hedges resulted in no significant ineffectiveness for the nine months ended September 30, 2018 and 2017, and no significant 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 September 30, 2018, 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 September 30, 2018 is September 2020. Gains or losses on undesignated foreign exchange hedging instruments are immediately recognized in other (income) and expense, net. A loss of $9 and a gain of $22 were recorded in the three months ended September 30, 2018 and 2017, respectively. A loss of $46 and a gain of $38 were recorded in the nine months ended September 30, 2018 and 2017, 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 September 30, 2018, the notional value of these undesignated derivative instruments was approximately $2.5 billion. |
Description Of Business Segments |
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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 ongoing operations of the business segments, including the costs of corporate decisions related to the 2018 Global Restructuring Program described in Note 2. The principal sources of revenue in each global business segment are described below:
Information concerning consolidated operations by business segment is presented in the following tables:
N.M. - Not Meaningful Sales of Principal Products
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Supplemental Balance Sheet Data |
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Statement of Financial Position [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Financial Information Disclosure | Supplemental Balance Sheet Data The following schedule presents a summary of inventories by major class:
Inventories are valued at the lower of cost or 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:
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2018 Global Restructuring Program (Tables) - 2018 Global Restructuring Program |
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Restructuring and Related Costs | The following charges were incurred in connection with the 2018 Global Restructuring Program:
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Schedule of Restructuring Reserve by Type of Cost | The following summarizes the restructuring liabilities activity:
As of September 30, 2018, restructuring liabilities of $138 are recorded in Accrued expenses and $125 are recorded in Other Liabilities. The impact related to restructuring charges is recorded in Operating working capital and Other Operating Activities, as appropriate, in our consolidated cash flow statement. |
Fair Value Information (Tables) |
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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:
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Earnings Per Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Stockholders' Equity (Tables) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Roll Forward Of Stockholders' Equity | Set forth below is a reconciliation for the nine months ended September 30, 2018 of the carrying amount of total stockholders' equity (deficit) from the beginning of the period to the end of the period.
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Schedule of Accumulated Other Comprehensive Income (Loss), Attributable to Kimberly-Clark Corporation | The changes in the components of AOCI attributable to Kimberly-Clark, net of tax, are as follows:
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Description Of Business Segments (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Concerning Consolidated Operations by Business Segment | Information concerning consolidated operations by business segment is presented in the following tables:
N.M. - Not Meaningful |
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Sales of Principal Products | Sales of Principal Products
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Summary of Balance Sheet Data (Tables) |
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Statement of Financial Position [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | The following schedule presents a summary of inventories by major class:
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Property, Plant and Equipment | The following schedule presents a summary of property, plant and equipment, net:
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Accounting Policies Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jun. 30, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
U.S. Tax Cuts and Jobs Act | |||
Accounting Policies | |||
Tax effects reclassified from AOCI | $ 156 | ||
Net sales | K-C Argentina | |||
Accounting Policies | |||
Net sales of K-C Argentina, percent | 2.00% | 2.00% |
2018 Global Restructuring Program Restructuring Reserve (Details) - 2018 Global Restructuring Program $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Restructuring Cost and Reserve | |
Restructuring liabilities - January 1 | $ 0 |
Cash payments | (229) |
Currency and other | (20) |
Restructuring liabilities - September 30 | 263 |
Workforce reductions and other exit costs | |
Restructuring Cost and Reserve | |
Charges for workforce reductions and other cash exit costs | $ 512 |
U.S. Tax Reform U.S. Tax Reform (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Mar. 31, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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U.S. Tax Reform Related Matters | ||||
U.S. Federal Statutory Income Tax Rate | 21.00% | 35.00% | ||
U.S. Tax Cuts and Jobs Act | ||||
U.S. Tax Reform Related Matters | ||||
Other Tax Expense (Benefit) | $ 26 | $ 82 |
Fair Value Information (Narrative) (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Redeemable Preferred Securities Of Subsidiaries Fair Value Disclosure | $ 61 | $ 61 |
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”) | 71 | 68 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivatives Assets | 31 | 27 |
Derivatives Liability | $ 33 | $ 51 |
Fair Value Information (Fair Value Of Financial Instruments) (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
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Carrying (Reported) Amount, Fair Value Disclosure | Fair Value, Inputs, Level 1 | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||||||||
Cash and cash equivalents | [1] | $ 494 | $ 616 | ||||||||
Time deposits | [2] | 257 | 185 | ||||||||
Carrying (Reported) Amount, Fair Value Disclosure | Fair Value, Inputs, Level 2 | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||||||||
Short-term debt | [3] | 980 | 547 | ||||||||
Long-term debt | [4] | 6,545 | 6,878 | ||||||||
Estimated Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 1 | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||||||||
Cash and cash equivalents | [1] | 494 | 616 | ||||||||
Time deposits | [2] | 257 | 185 | ||||||||
Estimated Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||||||||
Short-term debt | [3] | 980 | 547 | ||||||||
Long-term debt | [4] | $ 6,716 | $ 7,398 | ||||||||
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Earnings Per Share (Narrative) (Details) - shares shares in Millions |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Earnings Per Share [Abstract] | ||
Common shares outstanding | 346.6 | 351.9 |
Earnings Per Share (Average Common Shares Outstanding Basic And Diluted) (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Average Common Shares Outstanding Basic and Diluted | ||||
Basic | 347.2 | 352.7 | 348.8 | 354.4 |
Dilutive effect of stock options and restricted share unit awards | 1.6 | 2.1 | 1.6 | 2.3 |
Diluted | 348.8 | 354.8 | 350.4 | 356.7 |
Stockholders' Equity (Narrative) (Details) shares in Millions, $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
shares
| |
Equity, Class of Treasury Stock | |
Repurchased shares | shares | 5.5 |
Repurchased shares, total cost | $ | $ 601 |
Stockholders' Equity (Components Of Stockholders' Equity) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
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Kimberly-Clark Corporation | $ (133) | $ (133) | $ 629 | ||
Noncontrolling Interests | 245 | 245 | $ 253 | ||
Increase (Decrease) in Stockholders' Equity | |||||
Net Income (Loss) Attributable to Parent | $ 451 | $ 567 | 999 | $ 1,661 | |
Kimberly-Clark Corporation | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Net Income (Loss) Attributable to Parent | 999 | ||||
Other comprehensive loss, net of tax | (200) | ||||
Stock-based awards exercised or vested | 50 | ||||
Recognition of stock-based compensation | 44 | ||||
Shares repurchased | (621) | ||||
Dividends declared | (1,046) | ||||
Other | 12 | ||||
Noncontrolling Interests | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Net Income | 22 | ||||
Other comprehensive loss, net of tax | (10) | ||||
Stock-based awards exercised or vested | 0 | ||||
Recognition of stock-based compensation | 0 | ||||
Shares repurchased | 0 | ||||
Dividends declared | (20) | ||||
Other | $ 0 |
Stockholders' Equity (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
||||
Net current period other comprehensive income (loss) | $ (79) | $ 128 | $ (343) | $ 450 | |||
Net current period other comprehensive income (loss) | 22 | (8) | 101 | (11) | |||
Defined Benefit Pension Plans | |||||||
Defined benefit and other postretirement benefit plans - Beginning balance | (976) | (1,097) | |||||
Other comprehensive income/(loss) before reclassifications | 25 | (34) | |||||
(Income)/loss reclassified from AOCI | [1] | 63 | 27 | ||||
Net current period other comprehensive income (loss) | 88 | (7) | |||||
Tax effects reclassified from AOCI | (125) | ||||||
Defined benefit and other postretirement benefit plans - Ending balance | (1,013) | (1,104) | (1,013) | (1,104) | |||
Other Postretirement Benefit Plans | |||||||
Defined benefit and other postretirement benefit plans - Beginning balance | (39) | (31) | |||||
Other comprehensive income/(loss) before reclassifications | 14 | (3) | |||||
(Income)/loss reclassified from AOCI | [1] | (1) | (1) | ||||
Net current period other comprehensive income (loss) | 13 | (4) | |||||
Tax effects reclassified from AOCI | (5) | ||||||
Defined benefit and other postretirement benefit plans - Ending balance | (31) | (35) | (31) | (35) | |||
Cash Flow Hedges and Other | |||||||
Cash flow hedge and other - Beginning balance | (40) | 5 | |||||
Other comprehensive income/(loss) before reclassifications | 17 | (55) | |||||
(Income)/loss reclassified from AOCI | 14 | 6 | |||||
Net current period other comprehensive income (loss) | 31 | (49) | |||||
Tax effects reclassified from AOCI | (8) | ||||||
Cash flow hedge and other - Ending balance | (17) | (44) | (17) | (44) | |||
Unrealized Translation | |||||||
Unrealized translation - Beginning balance | (1,864) | (2,351) | |||||
Other comprehensive income/(loss) before reclassifications | (333) | 439 | |||||
(Income)/loss reclassified from AOCI | 1 | 0 | |||||
Net current period other comprehensive income (loss) | (332) | 439 | |||||
Tax effects reclassified from AOCI | (18) | ||||||
Unrealized translation - Ending balance | $ (2,214) | $ (1,912) | $ (2,214) | $ (1,912) | |||
|
Legal Matters Legal Matters (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Jun. 30, 2017 |
|
Loss Contingencies | ||
Punitive damages awarded | $ 19 | $ 350 |
Total compensatory and punitive damages plus pre-judgment interest awarded | $ 25 |
Objectives And Strategies For Using Derivatives (Narratives) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
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Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) | |||||
Gain (loss) on undesignated foreign exchange hedging instruments | $ (9,000,000) | $ 22,000,000 | $ (46,000,000) | $ 38,000,000 | |
Foreign currency exchange contracts | Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) | |||||
Aggregate notional values of outstanding derivatives | 2,500,000,000 | 2,500,000,000 | |||
Net Investment Hedging | |||||
Derivative Instruments, Gain (Loss) | |||||
Aggregate notional values of outstanding derivatives | 638,000,000 | $ 638,000,000 | |||
Fair Value Hedging | |||||
Derivative Instruments, Gain (Loss) | |||||
Fair value hedge ineffectiveness assertion | Fair value hedges resulted in no significant ineffectiveness in the nine months ended September 30, 2018 and 2017 | ||||
Gain (loss) recognized in earnings as a result of hedge not qualifying as a fair value hedge | $ 0 | $ 0 | |||
Fair Value Hedging | Interest Rate Contract | |||||
Derivative Instruments, Gain (Loss) | |||||
Aggregate notional values of outstanding derivatives | 300,000,000 | $ 300,000,000 | |||
Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) | |||||
Cash flow hedge ineffectiveness assertion | Cash flow hedges resulted in no significant ineffectiveness for the nine months ended September 30, 2018 and 2017 | ||||
Maximum Maturity Date | Sep. 30, 2020 | ||||
Cash Flow Hedging | Foreign currency exchange contracts | |||||
Derivative Instruments, Gain (Loss) | |||||
Aggregate notional values of outstanding derivatives | 664,000,000 | $ 664,000,000 | |||
Cash Flow Hedging | Interest Rate Contract | |||||
Derivative Instruments, Gain (Loss) | |||||
Aggregate notional values of outstanding derivatives | 100,000,000 | 100,000,000 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Derivative Instruments, Gain (Loss) | |||||
Derivative Asset | 31,000,000 | 31,000,000 | $ 27,000,000 | ||
Derivative Liability | $ 33,000,000 | $ 33,000,000 | $ 51,000,000 |
Description Of Business Segments (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Net Sales | $ 4,582 | $ 4,665 | $ 13,917 | $ 13,745 | |||
Sales Revenue, Net, Percent Change | (2.00%) | 1.00% | |||||
Operating Profit | $ 669 | 868 | $ 1,590 | 2,530 | |||
Other (income) and expense, net | $ (2) | (8) | $ 6 | 0 | |||
Operating Profit, Percent Change | (23.00%) | (37.00%) | |||||
2018 Global Restructuring Program | Before Tax | |||||||
Restructuring Charges | $ 149 | $ 856 | |||||
Personal Care | |||||||
Net Sales | $ 2,252 | 2,284 | $ 6,816 | 6,804 | |||
Sales Revenue, Net, Percent Change | (1.00%) | 0.00% | |||||
Operating Profit | $ 466 | 482 | $ 1,397 | 1,443 | |||
Operating Profit, Percent Change | (3.00%) | (3.00%) | |||||
Personal Care | 2018 Global Restructuring Program | Before Tax | |||||||
Restructuring Charges | $ 476 | ||||||
Consumer Tissue | |||||||
Net Sales | $ 1,469 | 1,518 | $ 4,520 | 4,436 | |||
Sales Revenue, Net, Percent Change | (3.00%) | 2.00% | |||||
Operating Profit | $ 212 | 265 | $ 668 | 790 | |||
Operating Profit, Percent Change | (20.00%) | (15.00%) | |||||
Consumer Tissue | 2018 Global Restructuring Program | Before Tax | |||||||
Restructuring Charges | $ 194 | ||||||
K-C Professional | |||||||
Net Sales | $ 848 | 852 | $ 2,541 | 2,473 | |||
Sales Revenue, Net, Percent Change | 0.00% | 3.00% | |||||
Operating Profit | $ 160 | 175 | $ 483 | 490 | |||
Operating Profit, Percent Change | (9.00%) | (1.00%) | |||||
K-C Professional | 2018 Global Restructuring Program | Before Tax | |||||||
Restructuring Charges | $ 112 | ||||||
Corporate and Other | |||||||
Net Sales | $ 13 | 11 | 40 | 32 | |||
Operating Profit | [1] | (171) | (62) | (952) | (193) | ||
Other (income) and expense, net | |||||||
Other (income) and expense, net | [1] | $ (2) | $ (8) | $ 6 | $ 0 | ||
Operating Profit, Percent Change | (75.00%) | ||||||
|
Description Of Business Segments Sales of Principle Products (Details) - USD ($) $ in Billions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Consolidated | ||||
Sales Revenue, Net | $ 4.6 | $ 4.7 | $ 13.9 | $ 13.7 |
Consumer Tissue Products | ||||
Consolidated | ||||
Sales Revenue, Net | 1.5 | 1.5 | 4.5 | 4.4 |
Baby and Child Care Products | ||||
Consolidated | ||||
Sales Revenue, Net | 1.6 | 1.6 | 4.7 | 4.7 |
Away-from-home Professional Products | ||||
Consolidated | ||||
Sales Revenue, Net | 0.8 | 0.9 | 2.5 | 2.5 |
All Other | ||||
Consolidated | ||||
Sales Revenue, Net | $ 0.7 | $ 0.7 | $ 2.2 | $ 2.1 |
Supplemental Balance Sheet Data - Inventory (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Raw materials | $ 335 | $ 345 |
Work in process | 226 | 213 |
Finished goods | 1,114 | 1,105 |
Supplies and other | 279 | 303 |
Inventory, Gross | 1,954 | 1,966 |
Excess of FIFO or weighted-average cost over LIFO cost | (184) | (176) |
Total | 1,770 | 1,790 |
LIFO | ||
Raw materials | 83 | 87 |
Work in process | 120 | 110 |
Finished goods | 450 | 421 |
Supplies and other | 0 | 0 |
Inventory, Gross | 653 | 618 |
Excess of FIFO or weighted-average cost over LIFO cost | (184) | (176) |
Total | 469 | 442 |
Non-LIFO | ||
Raw materials | 252 | 258 |
Work in process | 106 | 103 |
Finished goods | 664 | 684 |
Supplies and other | 279 | 303 |
Inventory, Gross | 1,301 | 1,348 |
Excess of FIFO or weighted-average cost over LIFO cost | 0 | 0 |
Total | $ 1,301 | $ 1,348 |
Supplemental Balance Sheet Data - Property Plant and Equipment (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment | ||
Land | $ 169 | $ 173 |
Buildings | 2,786 | 2,830 |
Machinery and equipment | 14,041 | 14,612 |
Construction in progress | 503 | 300 |
Property, Plant and Equipment, Gross | 17,499 | 17,915 |
Less accumulated depreciation | (10,469) | (10,479) |
Total | $ 7,030 | $ 7,436 |
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