Kimberly-Clark 2015 Annual Report Download - page 32

• Ourshareofnetincomefromequitycompaniesisexpectedtobesimilarto,orupsomewhat,comparedto2015.
• Weanticipatecapitalspendingtobeina$950to$1,050rangeandsharerepurchasestototal$600to$900,subjecttomarketconditions.
• Weexpecttocontributeupto$100toourdefinedbenefitpensionplansandtoincreaseourquarterlydividendmid-single digitseffectiveApril2016,
subjecttoapprovalbytheBoardofDirectors.
Information Concerning Forward-Looking Statements
Certainmatterscontainedinthisreportconcerningthebusinessoutlook,includingtheanticipatedcosts,scope,timingandfinancialandothereffectsofthe2014
Organization Restructuring, the anticipated cost savings from the company’s FORCE program, cash flow and uses of cash, growth initiatives, innovations,
marketingandotherspending,cost savingsandreductions,netsales,anticipated currencyratesandexchangerisks, rawmaterial,energyandotherinput costs,
contingencies and anticipated transactions of Kimberly-Clark, including dividends, share repurchases and pension contributions, constitute "forward-looking
statements"within themeaning ofthePrivate SecuritiesLitigation ReformAct of1995andarebased uponmanagement's expectationsandbeliefs concerning
futureevents impacting Kimberly-Clark. Therecan beno assurancethat these futureevents willoccur asanticipated orthat our resultswill beas estimated.
Forward-lookingstatementsspeakonlyasofthedatetheyweremade,andweundertakenoobligationtopubliclyupdatethem.
Theassumptionsusedasabasisfortheforward-lookingstatementsincludemanyestimatesthat,amongotherthings,dependontheachievementoffuturecost
savingsandprojectedvolume increases.Inaddition,manyfactors outsideourcontrol,includingfluctuationsinforeigncurrencyexchangerates, thepricesand
availability of our raw materials, potential competitive pressures on selling prices for our products, energy costs and retail trade customer actions, as well as
generaleconomicandpoliticalconditionsgloballyandinthemarketsinwhichwedobusiness,couldaffecttherealizationoftheseestimates.
ThefactorsdescribedunderItem1A,"RiskFactors"inthisForm10-K,orinourotherSECfilings,amongothers,couldcauseourfutureresultstodifferfrom
thoseexpressedinanyforward-lookingstatementsmadebyusoronourbehalf.Otherfactorsnotpresentlyknowntousorthatwepresentlyconsiderimmaterial
couldalsoaffectourbusinessoperationsandfinancialresults.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a multinational enterprise, we are exposed to risks such as changes in foreign currency exchange rates, interest rates and commodity prices. A variety of
practices are employed to manage these risks, including operating and financing activities and, where deemed appropriate, the use of derivative instruments.
Derivativeinstrumentsareusedonlyforriskmanagementpurposesandnotforspeculation.Allforeigncurrencyderivativeinstrumentsareenteredintowithmajor
financialinstitutions.Ourcreditexposureunderthesearrangementsislimitedtoagreementswithapositivefairvalueatthereportingdate.Creditriskwithrespect
tothecounterpartiesisactivelymonitoredbutisnotconsideredsignificantsincethesetransactionsareexecutedwithadiversifiedgroupoffinancialinstitutions.
Presentedbelowisadescriptionofourrisks(foreigncurrencyriskandinterestraterisk)togetherwithasensitivityanalysis,performedannually,ofeachofthese
risksbasedonselectedchangesinmarketratesandprices.Theseanalysesreflectmanagement'sviewofchangeswhicharereasonablypossibletooccurovera
one-yearperiod.Alsoincludedisadescriptionofourcommoditypricerisk.
Foreign Currency Risk
Aportionofourforeigncurrencyriskismanagedbythesystematicuseofforeigncurrencyforwardandswapcontracts.Theuseoftheseinstrumentsallowsthe
managementoftransactionalexposurestoexchangeratefluctuationsbecausethegainsorlossesincurredonthederivativeinstrumentswilloffset,inwholeorin
part,lossesorgainsontheunderlyingforeigncurrencyexposure.
Foreigncurrencycontractsandtransactionalexposuresaresensitivetochanges inforeigncurrencyexchangerates. Anannualtestisperformedtoquantify the
effectsthatpossiblechangesinforeigncurrencyexchangerateswouldhaveonannualoperatingprofitbasedonourforeigncurrencycontractsandtransactional
exposures at the current year-end. Thebalance sheet effect is calculated by multiplyingeach affiliate's net monetary asset or liability positionby a 10 percent
changeintheforeigncurrencyexchangerateversustheU.S.dollar.
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28 KIMBERLY-CLARKCORPORATION - 2015 Annual Report