Kimberly-Clark 2008 Annual Report Download - page 73

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
assets that will be sold or disposed of to their estimated fair values. Charges for asset write-offs reduced the
carrying amount of long-lived assets to their estimated salvage value in connection with the decision to dispose
of such assets.
Costs of the initiatives have not been recorded at the business segment level, as the strategic cost reductions
are corporate decisions. These charges are included in the following income statement captions:
Year Ended December 31
2008 2007 2006 2005 Total
(Millions of dollars)
Cost of products sold .......................................... $43 $ 89 $ 342 $202 $ 676
Marketing, research and general expenses .......................... 29 32 134 27 222
Other (income) and expense, net ................................. (12) (14) 8 — (18)
Pretax charges ............................................ 60 107 484 229 880
Provision for income taxes ...................................... (24) (46) (138) (61) (269)
Minority owners’ share of subsidiaries’ net income .................. —— (1) — (1)
Total after-tax charges ..................................... $36 $ 61 $ 345 $168 $ 610
See Note 18 for additional information on the strategic cost reductions by business segment.
Actual pretax charges for the strategic cost reductions relate to activities in the following geographic areas
for the years ended December 31:
2008
North
America Europe Other Total
(Millions of dollars)
Incremental depreciation and amortization .............................. $8 $6 $— $14
Asset write-offs ................................................... 10 3 — 13
Charges for workforce reductions and special pension and other benefits ...... 11 8 — 19
Loss (gain) on asset disposal and other charges .......................... 19 6 (11) 14
Total charges ................................................. $48 $23 $ (11) $ 60
2007
North
America Europe Other Total
(Millions of dollars)
Incremental depreciation and amortization .............................. $40 $25 $ 1 $ 66
Asset write-offs ................................................... 6 3 — 9
Charges (credits) for workforce reductions and special pension and other
benefits ....................................................... 19 (8) 6 17
Loss (gain) on asset disposal and other charges .......................... 19 (4) — 15
Total charges ................................................. $84 $16 $ 7 $107
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