Kimberly-Clark 2015 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2015 Kimberly-Clark annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

Werecognizeaccruedinterestandpenaltiesrelatedtounrecognizedtaxbenefitsinincometaxexpense.DuringeachofthethreeyearsendedDecember31,2015,
the net cost in interest and penalties was not significant. Total accrued penalties and net accrued interest was $40and$28atDecember 31,2015and2014,
respectively.
Itisreasonablypossiblethatanumberofuncertaintiescouldberesolvedwithinthenext12months.Theaggregateresolutionoftheuncertaintiescouldbeupto
$170,whilenoneoftheuncertaintiesisindividuallysignificant.Resolutionofthesemattersisnotexpectedtohaveamaterialeffectonourfinancialcondition,
resultsofoperationsorliquidity.
AsofDecember31,2015,thefollowingtaxyearsremainsubjecttoexaminationforthemajorjurisdictionswhereweconductbusiness:
Jurisdiction Years
UnitedStates 2012to2015
UnitedKingdom 2012to2015
Brazil 2010to2015
Korea 2014to2015
China 2006to2015
OurU.S.federalincome taxreturnshavebeenauditedthrough2011. Wehavevariousfederal incometaxreturnpositions inadministrativeappeals for2004,
2005,2007,2010and2011.
Stateincometaxreturnsaregenerallysubjecttoexaminationforaperiodof3to5yearsafterfilingoftherespectivereturn.Thestateeffectofanychangestofiled
federalpositions remainssubject toexamination byvariousstates fora periodofuptotwoyears afterformalnotification tothe states.Wehave variousstate
incometaxreturnpositionsintheprocessofexamination,administrativeappealsorlitigation.
Note 15 . Earnings Per Share ("EPS")
TherearenoadjustmentsrequiredtobemadetonetincomeforpurposesofcomputingbasicanddilutedEPS.Theaveragenumberofcommonsharesoutstanding
isreconciledtothoseusedinthebasicanddilutedEPScomputationsasfollows:
(Millions of shares)
2015
2014
2013
Basic
363.8
374.5
384.0
Dilutiveeffectofstockoptionsandrestrictedshareunitawards
2.5
2.9
3.3
Diluted
366.3
377.4
387.3
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wereinsignificant.ThenumberofcommonsharesoutstandingasofDecember31,2015,2014and2013was360.9million,365.3millionand
380.8million,respectively.
Note 16 . 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 KCP.The reportable segments were determined in accordance with how 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thebusinesssegments,includingthechargesrelatedtothe2014OrganizationRestructuringandtheEuropeanstrategicchangesdescribedin
Notes2and4,respectively.
56 KIMBERLY-CLARKCORPORATION - 2015 Annual Report