Kimberly-Clark 2007 Annual Report Download - page 84

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Effective December 31, 2006, the Corporation adopted SFAS 158. SFAS 158 required the Corporation to
record a transition adjustment to recognize the funded status of postretirement defined benefit plans—measured
as the difference between the fair value of plan assets and the benefit obligations—in its balance sheet after
adjusting for derecognition of the Corporation’s minimum pension liability as of December 31, 2006.
Although the Corporation adopted the provisions of SFAS 158, it incorrectly presented the $395.2 million
effect of this transition adjustment as a reduction of 2006 comprehensive income on its Consolidated Statement
of Stockholders’ Equity for the year ended December 31, 2006. The effect of removing the SFAS 158 transition
adjustment changed reported comprehensive income from $1,736.7 million to $2,131.9 million.
Below is the detailed statement of 2007 other comprehensive income:
Year Ended
December 31, 2007
Pretax
Amount
Tax
Effect
Net
Amount
(Millions of dollars)
Unrealized translation ................................................ $365.3 $ — $365.3
Defined benefit pension plans:
Unrecognized net actuarial loss and transition amount
Funded status recognition ....................................... 264.0 (84.8) 179.2
Amortization included in net periodic benefit cost ................... 76.7 (27.8) 48.9
Currency and other ............................................ (15.5) 4.9 (10.6)
325.2 (107.7) 217.5
Unrecognized prior service cost
Unrecognized net actuarial loss and transition amount ................ 4.4 (1.8) 2.6
Funded status recognition ....................................... 6.9 (2.5) 4.4
11.3 (4.3) 7.0
336.5 (112.0) 224.5
Other postretirement defined benefit plans:
Unrecognized net actuarial loss and transition amount
Funded status recognition ....................................... 16.2 22.0 38.2
Amortization included in net periodic benefit cost ................... 5.3 (2.0) 3.3
Currency and other ............................................ (1.7) .5 (1.2)
19.8 20.5 40.3
Unrecognized prior service cost
Amortization included in net periodic benefit cost ................... 1.8 (.7) 1.1
21.6 19.8 41.4
Cash flow hedges and other:
Recognition of effective portion of hedges ............................. (20.3) 16.1 (4.2)
Amortization included in net income .................................. 29.9 (11.8) 18.1
Currency and other ................................................ (4.1) — (4.1)
5.5 4.3 9.8
Other comprehensive income .......................................... $728.9 $ (87.9) $641.0
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