Kimberly-Clark 2007 Annual Report Download - page 72

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2005
North
America Europe Other Total
(Millions of dollars)
Incremental depreciation and amortization ........................... $52.0 $ 21.1 $ 7.0 $ 80.1
Asset impairments .............................................. — 67.2 — 67.2
Asset write-offs ................................................ 4.7 17.5 10.2 32.4
Charges for workforce reductions and special
pension and other benefits ...................................... 18.0 6.8 13.1 37.9
Loss on asset disposal and other charges ............................. 10.2 .8 — 11.0
Total charges .............................................. $84.9 $113.4 $30.3 $228.6
Note 3. Acquisitions and Intangible Assets
Acquisitions
During the first quarter of 2007, the Corporation acquired the remaining 50 percent interest in its Indonesian
subsidiary, P.T. Kimberly-Lever Indonesia for $15.7 million. The allocation of the purchase price to the fair
value of assets and liabilities acquired was completed in 2007 and resulted in recognition of goodwill of
$11.7 million.
During the fourth quarter of 2006, the Corporation acquired the remaining 30 percent interest in its Brazilian
subsidiary, Kimberly-Clark Kenko Industria e Comercio Ltda for $99.6 million. The allocation of the purchase
price to the fair value of assets and liabilities acquired was completed in 2007 and resulted in recognition of
goodwill and other intangible assets of approximately $78 million.
These acquisitions are consistent with the Corporation’s strategy of investing for growth in the rapidly
growing BRICIT countries (Brazil, Russia, India, China, Indonesia and Turkey), and are expected to better
position the Corporation to leverage its scale and capabilities in customer development and product supply to
drive growth and profitability across its businesses in Indonesia and Brazil.
Goodwill
The changes in the carrying amount of goodwill by business segment are as follows:
Personal
Care
Consumer
Tissue
K-C
Professional
& Other
Health
Care Total
(Millions of dollars)
Balance at January 1, 2006 ........................ $529.8 $605.5 $303.8 $1,246.5 $2,685.6
Acquisitions ................................... 78.1 — — — 78.1
Currency and other .............................. 43.7 45.4 5.0 2.7 96.8
Balance at December 31, 2006 ..................... 651.6 650.9 308.8 1,249.2 2,860.5
Acquisitions ................................... 7.8 2.0 1.9 — 11.7
Currency and other .............................. 49.8 (2.9) 19.6 3.7 70.2
Balance at December 31, 2007 ..................... $709.2 $650.0 $330.3 $1,252.9 $2,942.4
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