Kimberly-Clark 2015 Annual Report Download - page 42

ascashflowhedgesisincludedinothercomprehensiveincomeintheperiodthatchangesinfairvalueoccur,andisreclassifiedtoincomeinthesameperiodthat
thehedgeditemaffectsincome.Thegainorlossonderivativesdesignatedashedgesofinvestmentsinforeignsubsidiariesisrecognizedinothercomprehensive
incometooffsetthechangeinvalueofthenetinvestmentsbeinghedged.Anyineffectiveportionofcashflowhedgesandnetinvestmenthedgesisimmediately
recognizedinincome.Certainforeign-currencyderivativeinstrumentsnotdesignatedashedginginstrumentshavebeenenteredintotomanageaportionofour
foreigncurrencytransactionalexposures.Thegainorlossonthesederivativesisincludedinincomeintheperiodthatchangesintheirfairvaluesoccur.SeeNote
13fordisclosuresaboutderivativeinstrumentsandhedgingactivities.
NewAccountingStandards
InJuly2015,theFinancialAccountingStandardsBoard(the“FASB”)issuedAccountingStandardsUpdate(“ASU”)No.2015-11,Simplifying the Measurement
of Inventory .ThisASUchangesthemeasurementprincipleforinventoriesvaluedundertheFIFOorweighted-averagemethodsfromthelowerofcostormarket
to the lower of cost and net realizable value.  Net realizable value is defined by the FASB as estimated selling prices in the ordinary course of business, less
reasonablypredictablecostsofcompletion,disposalandtransportation.ThisASUdoesnotchangethemeasurementprinciplesforinventoriesvaluedunderthe
LIFOmethod.WeadoptedthisASUonSeptember30,2015.TheadoptionofthisASUdidnothaveamaterialeffectonourConsolidatedFinancialStatements.
In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . Under ASU 2015-17, a
reportingentityisrequiredtoclassifydeferredtaxassetsandliabilitiesasnoncurrentinaclassifiedstatementoffinancialposition.Currentguidancerequiringthe
offsettingofdeferredtaxassetsandliabilitiesofatax-payingcomponentofanentityandpresentationasasinglenoncurrentamountisnotaffected.ThisASUis
effectiveforpublicbusinessentitiesissuingfinancialstatementsfortheannualperiodsbeginningafterDecember15,2016,andinterimperiodswithinthoseannual
periods. Early adoption is permitted for financial statements as of the beginning of an interim or annual reporting period. Entities may apply the update
prospectivelytoalldeferredtaxassetsandliabilitiesandtaxes,orretrospectivelyforallperiodspresented.Theeffectsofthisupdateonourfinancialposition,
resultsofoperationsandcashflowsarenotexpectedtobematerial.
In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which makes limited
amendmentstotheguidanceinU.S.GAAPontheclassificationandmeasurementoffinancialinstruments.Theupdatesignificantlyrevisesanentity'saccounting
relatedtotheclassificationandmeasurementofinvestmentsinequitysecuritiesandthepresentationofcertainfairvaluechangesforfinancialliabilitiesmeasured
atfairvalue.Italsoamendscertaindisclosurerequirementsassociatedwiththefairvalueoffinancialinstruments.Theupdatewilltakeeffectforpubliccompanies
forfiscalyearsbeginningafterDecember15,2017,includinginterimperiodswithinthosefiscalyears.Theeffectsofthisupdateonourfinancialposition,results
ofoperationsandcashflowsarenotexpectedtobematerial.
InMay2014,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andwillsupersedemostcurrentrevenuerecognitionguidance.Thestandardiseffectiveforpublic
entities for annual and interim periods beginningafter December 15, 2017. Early adoption is permitted as ofone year prior to thecurrent effective date. The
guidancepermitstwoimplementationapproaches,onerequiringretrospectiveapplicationofthenewstandardwithrestatement ofprioryearsandonerequiring
prospective application of the new standard with disclosure of results under old standards. The effects of this standard on our financial position, results of
operationsandcashflowsarenotyetknown.
Note 2 . 2014 Organization Restructuring
InOctober2014,weinitiatedarestructuringplaninordertoimproveorganizationefficiencyandoffsettheimpactofstrandedoverheadcostsresultingfromthe
spin-offofourhealthcarebusiness.Therestructuringisintendedtoimproveourunderlyingprofitabilityandincreaseourflexibilitytoinvestintargetedgrowth
initiatives,brandbuildingandothercapabilitiescriticaltodeliveringfuturegrowth.
Therestructuringisexpectedtobecompletedbytheendof2016,withtotalcosts,primarilyseverance,anticipatedtobe$130to$160aftertax($190to$230pre-
tax).Cashcostsareprojectedtobeapproximately80percentofthetotalcharges.Therestructuring isexpectedtoimpactallofourbusinesssegmentsandour
organizationsinallmajorgeographies.
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38 KIMBERLY-CLARKCORPORATION - 2015 Annual Report