1.0.0.3 false Monetization Financing Entities false 1 $ false false iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 iso4217_USD_per_shares Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares 0 5 Monetization Financing Entities 3 kmb_MonetizationFinancingUnitsTextBlock kmb false na duration string Monetization Financing Entities [Text Block] false false false false false false false false false 1 false false 0 0 <div> Note 2.    Monetization Financing Entities   Prior to November 2009, the Corporation had minority voting interests in two financing entities (“Entity 1” and “Entity 2”, collectively the “Financing Entities”) used to monetize long-term notes (the “Notes”) received from the sale of certain nonstrategic timberlands and related assets to nonaffiliated buyers. The Notes have an aggregate face value of $617 million and are backed by irrevocable standby letters of credit issued by money center banks. The Notes and certain other assets were transferred to the Financing Entities in 1999 and 2000. A nonaffiliated financial institution (the “Third Party”) made substantive capital investments in each of the Financing Entities and had majority voting control over each of them. The Third Party also made monetization loans aggregating $617 million to the Corporation, which were assumed by the Financing Entities at the time they acquired the Notes. These monetization loans are secured by the Notes. The Corporation also contributed to the Financing Entities intercompany notes receivable aggregating $662 million and intercompany preferred stock of $50 million, which serve as secondary collateral for the monetization loans.   In 2003, the Third Party was determined to be the primary beneficiary of the Financing Entities as a result of the interest rate variability allocated to it. On June 30, 2008, the maturity dates of the lending arrangements with the Third Party were extended. In connection with the extensions, the primary beneficiary determination was reconsidered and, after excluding the interest rate variability as required by an accounting standard change, the Corporation became the primary beneficiary and began consolidating the Financing Entities. The assets and liabilities of the Financing Entities were recorded at fair value as of June 30, 2008. Because the fair value of the monetization loans exceeded the fair 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 the two loans were extended in June 2009. These extensions had no effect on the primary beneficiary determination.   In November 2009, the Corporation acquired the Third Party’s equity voting interest in Entity 2 and acquired the Third Party’s Entity 2 monetization loan rights for approximately $235 million. As a result, Entity 2 became a wholly-owned subsidiary of the Corporation. In addition, the maturity date of the Entity 1 monetization loan was extended. This extension had no effect on the primary beneficiary determination.   The following summarizes the terms of the Notes and the Entity 1 loan as of December 31, 2009 (millions of dollars):   <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="41%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> Description </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">Face Value</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">Carrying Amount</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center" colspan="2">Fair Value</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Maturity</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">Interest Rate(1)(2)</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Note 1 </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">397</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">392</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">375</td> <td valign="bottom">  </td> <td valign="bottom" align="right">09/30/2014</td> <td valign="bottom">  </td> <td valign="bottom">LIBOR minus 15 bps</td> </tr> <tr> <td valign="top"> Loan </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">397</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">397</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">398</td> <td valign="bottom">  </td> <td valign="bottom" align="right">01/31/2011</td> <td valign="bottom">  </td> <td valign="bottom">LIBOR plus 127 bps</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Note 2 </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">220</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">215</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">216</td> <td valign="bottom">  </td> <td valign="bottom" align="right">07/07/2011</td> <td valign="bottom">  </td> <td valign="bottom">LIBOR minus 12.5 bps</td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" align="left" width="3%">(1)</td> <td valign="top" align="left">Payable quarterly</td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" align="left" width="3%">(2)</td> <td valign="top" align="left">3-month LIBOR</td> </tr> </table>   The Notes and the loan are not traded in active markets. Accordingly, their 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, fair value credit spread, stated spread, maturity date and interest payment dates.   The difference between the carrying amount of the Notes and their fair value represents an unrealized loss position for which an other-than-temporary impairment has not been recognized in earnings because the Corporation does not have the intent to sell, and has both the intent and ability to hold, the Notes for a period of time sufficient to allow for an anticipated recovery of fair value to the carrying amount of the Notes.   Interest income on the Notes of $8 million and $14 million and interest expense on the monetization loans of $14 million and $15 million have been reported on the Corporation’s 2009 and 2008 Consolidated Income Statement, respectively. </div> Note 2.    Monetization Financing Entities   Prior to November 2009, the Corporation had minority voting interests in two financing false false Monetization Financing Entities [Text Block] No authoritative reference available. false false 1 1 false UnKnown UnKnown UnKnown false true