Kimberly-Clark 2007 Annual Report Download - page 118

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Additional Information—(Continued)
Trademarks
The brand names mentioned in this report—Andrex, Ballard, Be Kind to Your Behind, Big Kid, Cool Alert,
Cottonelle, Cottonelle Fresh, Depend, DryNites, Duramax, GoodNites, Hakle, Huggies, Huggies Supreme,
Hydroknit, iFlex, InteguSeal, Intimus, K-C Smart Station, Kimberly-Clark, Kimberly-Clark Professional,
Kimcare, Kimtech, Kimtech Science, KimVent, Kimwipes, Kleenex, KleenGuard, Kotex, Kotex Supreme,
Kotex Young, Let It Out, Lightdays, Little Swimmers, MicroCuff, Microforce, Page, Poise, Pop-Up, Pull-Ups,
Puppy Design, Reflex, Scott, Scott Duramax, Scottex, Scott Limpiamax, Sterling, Trach Care,
Viva and WypAll—are trademarks of Kimberly-Clark Worldwide, Inc. or its affiliates.
Cannondale PoweRanking®Survey is a registered trademark of Cannondale Associates.
Non-GAAP Financial Measures
The following financial measures contained in this Annual Report (not including the Form 10-K) have not
been calculated in accordance with accounting principles generally accepted in the U.S., or GAAP, and are
therefore referred to as non-GAAP financial measures:
• Adjusted earnings per share
• Organic sales growth
These non-GAAP financial measures exclude certain items that are included in the Corporation’s earnings
per share and sales growth calculated in accordance with GAAP. A detailed explanation of each of the
adjustments to the comparable GAAP financial measures is given below. In accordance with the requirements of
Regulation G, reconciliations of these non-GAAP financial measures to the comparable GAAP financial
measures also are set forth below.
The Corporation provides these non-GAAP financial measures as supplemental information to our GAAP
financial measures. Management and the Corporation’s Board of Directors use adjusted earnings per share to
(a) evaluate the Corporation’s historical and prospective financial performance and our performance relative to
our competitors, (b) allocate resources and (c) measure the operational performance of the Corporation’s
business units and their managers. Additionally, the Management Development and Compensation Committee of
the Corporation’s Board of Directors uses this non-GAAP financial measure when setting and assessing
achievement of incentive compensation goals. These goals are based, in part, on the Corporation’s adjusted
earnings per share determined by excluding the charges and credits that are used in calculating this non-GAAP
financial measure. Management and the Corporation’s Board of Directors use organic sales growth to measure
the Corporation’s achievement of sales growth goals under the Global Business Plan.
In addition, Kimberly-Clark management believes that investors’ understanding of the Corporation’s
performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing
the Corporation’s ongoing results of operations. Many investors are interested in understanding the performance
of our businesses by comparing our results from ongoing operations from one period to the next. By providing
the non-GAAP financial measures, together with the reconciliation, we believe we are enhancing investors’
understanding of our businesses and our results of operations, as well as assisting investors in evaluating how
well the Corporation is executing the material changes to our enterprise contemplated by the Global Business
Plan, including the strategic cost reduction plan. Also, many financial analysts who follow our company focus on
and publish both historical results and future projections based on non-GAAP financial measures. We believe
that it is in the best interests of our investors for us to provide this information to analysts so that those analysts
accurately report the non-GAAP financial information.
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