Kimberly-Clark 2010 Annual Report Download

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2010 Annual Report on Form 10-K

Table of contents

  • Page 1
    2010 Annual Report on Form 10-K

  • Page 2

  • Page 3
    ... file number 1-225 KIMBERLY-CLARK CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 39-0394230 (I.R.S. Employer Identification No.) P. O. Box 619100, Dallas, Texas (Address of principal executive offices...

  • Page 4
    ... with Accountants on Accounting and Financial Disclosure ...Item 9A. Controls and Procedures ...Item 9B. Other Information ...Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder...

  • Page 5
    ... Hakle, Page and other brand names. K-C Professional & Other, which manufactures and markets facial and bathroom tissue, paper towels, napkins, wipers and a range of safety products for the away-from-home marketplace. Products in this segment are sold under the Kimberly-Clark, Kleenex, Scott, WypAll...

  • Page 6
    ...names. These reportable segments were determined in accordance with how our chief operating decision maker and our executive managers develop and execute our global strategies to drive growth and profitability of our worldwide Personal Care, Consumer Tissue, K-C Professional & Other and Health Care...

  • Page 7
    ... are directed toward new or improved personal care, tissue, wiping, safety and health care products and nonwoven materials. Consolidated research and development expense was $317 million in 2010, $301 million in 2009 and $297 million in 2008. Foreign Market Risks We operate and market our products...

  • Page 8
    ... manage these risks. Although we believe that the supplies of raw materials needed to manufacture our products are adequate, global economic conditions, supplier capacity constraints, natural disasters and other factors (including actions taken to address climate change and related market responses...

  • Page 9
    ... private label manufacturers, low-cost manufacturers and rapidly-expanding international manufacturers. These competitors may have greater financial resources and greater market penetration, which enable them to offer a wider variety of products and services at more competitive prices. Alternatively...

  • Page 10
    ... our management team and a skilled and diverse international workforce. A skilled and diverse international workforce is a significant factor in developing product innovation, as well as providing key viewpoints representative of our international consumer base. We compete to hire new employees and...

  • Page 11
    ... and inflation in Venezuela on our financial results in 2010. In addition, intense competition in European personal care and tissue markets, and the challenging economic, political and competitive environments in Latin America, Eastern Europe, Africa and Asia may slow our sales growth and earnings...

  • Page 12
    ... a recall, or product liability or other litigation may adversely affect our financial condition and business operations. Our sales and results of operations also may be adversely affected by new legal requirements, including health care reform legislation and climate change and other environmental...

  • Page 13
    ... of our and our equity affiliates' principal production facilities by major geographic areas of the world are as follows: Geographic Area: Number of Facilities United States (in 20 states) ...Canada ...Europe ...Asia, Latin America and Other ...Worldwide Total (in 39 countries) ... 27 1 20 64...

  • Page 14
    ... overseeing its businesses in Asia, Latin America, Eastern Europe, the Middle East and Africa, as well as operations and major project management in North America. He was appointed Vice President-North American Diaper Operations in 1992; Managing Director of Kimberly-Clark Australia Pty. Limited in...

  • Page 15
    ... sales and management positions in Europe and the U.S. He was appointed Vice President Research, Development & Engineering in the Away From Home sector in 1996; Vice President, Wiper Business in 1998; Vice President, European Operations, Engineering, Supply Chain in the K-C Professional sector...

  • Page 16
    ... Vice President and Chief Strategy Officer in September 2010. She is responsible for leading the development and monitoring of our strategic plans and processes to enhance our enterprise growth initiatives. Prior to joining Kimberly-Clark, Ms. Stock served as national vice president of strategy for...

  • Page 17
    ... reinvested in common stock and to make additional cash investments. Kimberly-Clark common stock is listed on the New York Stock Exchange. The ticker symbol is KMB. As of February 11, 2011, we had 27,955 holders of record of our common stock. For information relating to securities authorized...

  • Page 18
    ... analyzed Overview of Business Overview of 2010 Results Results of Operations and Related Information Liquidity and Capital Resources Variable Interest Entities Critical Accounting Policies and Use of Estimates Legal Matters New Accounting Standards Business Outlook Forward-Looking Statements 14

  • Page 19
    ... competition for sales of our principal products in our major markets, both domestically and internationally. Our products compete with widely-advertised, well-known, branded products, as well as private label products, which are typically sold at lower prices. We have several major competitors...

  • Page 20
    ... 2010 results to 2009, and 2009 results to 2008. Analysis of Consolidated Net Sales By Business Segment Year Ended December 31 2010 2009 2008 (Millions of dollars) Personal Care ...Consumer Tissue ...K-C Professional & Other ...Health Care ...Corporate & Other ...Consolidated ...By Geographic Area...

  • Page 21
    ... from higher sales of feminine care and adult incontinence products, including benefits from innovation in the U by Kotex, Poise and Depend brands and higher sales of training pants and baby wipes, partially offset by lower sales of Huggies diapers. In Europe, personal care net sales decreased about...

  • Page 22
    ... promotional activity to match competitive actions. Sales volumes were down low single-digits in facial tissue and double-digits in paper towels, primarily as a result of focusing on improving revenue realization and some consumer trade-down to lower-priced product offerings. In Europe, consumer...

  • Page 23
    ... virus. • Analysis of Consolidated Operating Profit By Business Segment Year Ended December 31 2010 2009 2008 (Millions of dollars) Personal Care ...Consumer Tissue ...K-C Professional & Other ...Health Care ...Other (income) and expense, net ...Corporate & Other ...Consolidated ... $1,764...

  • Page 24
    ... Financial Statements for additional information. Commentary: 2010 versus 2009 Percentage Change in Operating Profit Versus Prior Year Total Change Net Price Change Due To Input Cost Cost(a) Savings Currency Volume Other(b) Consolidated ...Personal Care ...Consumer Tissue ...K-C Professional...

  • Page 25
    ...Venezuela. Commentary: 2009 versus 2008 Percentage Change in Operating Profit Versus Prior Year Change Due To Production Total Net Input (Curtailment)/ (a) Change Volume Price Costs Efficiencies Currency Other(b) Consolidated ...Personal Care ...Consumer Tissue ...K-C Professional & Other ...Health...

  • Page 26
    ... currency effects. Operating profit for the health care segment increased 70.6 percent. The benefit of higher sales volumes, materials cost deflation, manufacturing production efficiencies and cost savings were partially offset by higher selling expenses, as a result of the I-Flow acquisition, and...

  • Page 27
    ... Financial Statements for detail on debt activity. Our effective income tax rate was 29.0 percent for 2009 compared with 27.0 percent for 2008. The increase was primarily due to favorable audit activity in 2008 relating to prior years and currency effects in Latin America and Asia-Pacific. Our share...

  • Page 28
    ... to amounts and timing of future payments. Deferred taxes, noncontrolling interests and payments for direct pension plan benefits are also not included in the table. A consolidated financing subsidiary has issued two classes of redeemable preferred securities. The holder of the securities can elect...

  • Page 29
    ... securities. Investing Commentary: • During 2010, our capital spending was $964 million. Financing Commentary: • • At December 31, 2010 and 2009, total debt and redeemable securities was $6.5 billion. We repurchase shares of Kimberly-Clark common stock from time to time pursuant to publicly...

  • Page 30
    ... from operations and our capacity to issue short-term and long-term debt are adequate to fund working capital, capital spending, payment of dividends, pension plan contributions and other needs in the foreseeable future. Variable Interest Entities We have interests in the financing and real estate...

  • Page 31
    ... related to the freeze of our U.S. defined benefit pension plans. Pension expense is calculated based upon a number of actuarial assumptions applied to each of the defined benefit plans. The weighted-average expected long-term rate of return on pension fund assets used to calculate pension expense...

  • Page 32
    ... and various other assumptions. Pension expense beyond 2011 will depend on future investment performance, our contributions to the pension trusts, changes in discount rates and various other factors related to the covered employees in the plans. If the expected long-term rates of return on assets...

  • Page 33
    ... of each operating segment. The determination of fair value requires significant management judgment including estimating future sales volumes, selling prices and costs, changes in working capital, investments in property and equipment and the selection of an appropriate discount rate. Sensitivities...

  • Page 34
    ... adverse economic conditions, competition, product changes and other external events may require more frequent assessments. The annual goodwill impairment testing has been completed and, as the fair value of each reporting unit was in excess of the respective reporting unit's carrying value, it...

  • Page 35
    ... effects on our Consolidated Financial Statements. Business Outlook Pulp & Tissue Restructuring On January 21, 2011, we initiated a pulp and tissue restructuring plan in order to exit our remaining integrated pulp manufacturing operations and improve the underlying profitability and return on...

  • Page 36
    ..., anticipated currency rates and exchange risk, anticipated effect of acquisitions, cost savings, changes in finished product selling prices, cash flow and uses of cash, capital spending, marketing, research and innovation spending, anticipated financial and operating results, contingencies...

  • Page 37
    ...QUALITATIVE DISCLOSURES ABOUT MARKET RISK As a multinational enterprise, we are exposed to risks such as changes in foreign currency exchange rates, interest rates and commodity prices. A variety of practices are employed to manage these risks, including operating and financing activities and, where...

  • Page 38
    ...10 percent increase in interest rates would not have a material effect on the future results of operations or cash flows. Commodity Price Risk We are subject to commodity price risk, the most significant of which relates to the price of pulp. Selling prices of tissue products are influenced, in part...

  • Page 39
    ... FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT Year Ended December 31 2010 2009 2008 (Millions of dollars, except per share amounts) Net Sales ...Cost of products sold ...Gross Profit ...Marketing, research and general expenses...

  • Page 40
    ... Employee Benefits ...Long-Term Income Taxes Payable ...Deferred Income Taxes ...Other Liabilities ...Redeemable Preferred and Common Securities of Subsidiaries ...Stockholders' Equity Kimberly-Clark Corporation Stockholders' Equity: Preferred stock-no par value-authorized 20.0 million shares...

  • Page 41
    ... awards exercised or vested ...- Income tax benefits on stock- based compensation ...- Shares repurchased ...- Recognition of stock-based compensation ...- Dividends declared ...- Additional investment in subsidiary and other ...- Balance at December 31, 2009 ...478,597 Net income in stockholders...

  • Page 42
    ...) KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year Ended December 31 2010 2009 2008 (Millions of dollars) Net Income ...Other Comprehensive Income, Net of Tax: Unrealized currency translation adjustments ...Employee postretirement benefits ...Other...

  • Page 43
    ... to Kimberly-Clark Corporation ...Depreciation and amortization ...Stock-based compensation ...Deferred income taxes ...Net losses on asset dispositions ...Equity companies' earnings in excess of dividends paid ...Decrease (increase) in operating working capital ...Postretirement benefits ...Other...

  • Page 44
    ...estimates, and changes in these estimates are recorded when known. Estimates are used in accounting for, among other things, consumer and trade promotion and rebate accruals, pension and other post-employment benefits, useful lives for depreciation and amortization, future cash flows associated with...

  • Page 45
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) are capitalized. External costs and certain internal costs (including payroll and payroll-related costs of employees) directly associated with developing significant computer software applications for ...

  • Page 46
    ... in the year the related advertisement is first presented by the media. For interim reporting purposes, advertising expenses are charged to operations as a percentage of sales based on estimated sales and related advertising expense for the full year. Research Expense Research and development costs...

  • Page 47
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Foreign Currency Translation The income statements of foreign operations, other than those in highly inflationary economies, are translated into U.S. dollars at rates of exchange in effect each month. ...

  • Page 48
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) We also have investments in real estate entities that generate income tax credits and tax losses that are used to reduce our income tax liabilities. Under the new requirements, we determined that we ...

  • Page 49
    ... the financial assets and liabilities measured at fair value as of December 31, 2010 and 2009, together with the inputs used to develop those fair value measurements. December 31, 2010 Fair Value Measurements Level 1 Level 2 Level 3 (Millions of dollars) Assets Company-owned life insurance ("COLI...

  • Page 50
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in other assets. Available-for-sale securities are included in other current assets and other...

  • Page 51
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (c) The notes and the loan are not traded in active markets. Accordingly, their fair values were calculated using a floating rate pricing model that compared the stated spread to the fair value spread ...

  • Page 52
    ... to KimberlyClark. In 2010, Operating Profit and Net Income Attributable to Kimberly-Clark at our Venezuelan subsidiary were both negative due to the charge recorded as a result of adopting highly inflationary accounting in the first quarter of 2010. At December 31, 2010, our net investment in...

  • Page 53
    ... in our international operations in Asia, Latin America, the Middle East, Eastern Europe and Africa. The charges were included in the following income statement captions: Year Ended December 31, 2009 (Millions of dollars) Cost of products sold ...Marketing, research and general expenses ...Total...

  • Page 54
    ... in customer development and product supply to drive growth and profitability across our businesses. Goodwill The changes in the carrying amount of goodwill by business segment are as follows: Personal Care K-C Consumer Professional Health Tissue & Other Care (Millions of dollars) Total Balance at...

  • Page 55
    ...$450 million of 5.30% notes due March 1, 2041. Proceeds from the offering will be used for general corporate purposes, including purchasing shares of company common stock pursuant to publicly announced share repurchase programs, funding of pension plans and redeeming outstanding commercial paper. 51

  • Page 56
    ... bear fixed annual interest rates. The funds remaining in the financing subsidiary are invested in equity-based exchange-traded funds. The preferred and common securities of the subsidiary held by Kimberly-Clark and the intercompany loans have been eliminated in our Consolidated Financial Statements...

  • Page 57
    ...outside director retires from or otherwise terminates service on our Board. At the time stock options are exercised or restricted shares and restricted share units become payable, common stock is issued from our accumulated treasury shares. Cash dividends or dividend equivalents are paid or credited...

  • Page 58
    ...Dividend yield ...Volatility ...Risk-free interest rate ...Expected life-years ... 5.00% 5.60% 4.10% 14.77% 19.81% 14.90% 2.74% 2.39% 3.19% 6.4 6.6 6.4 As of December 31, 2010, the total remaining unrecognized compensation costs and amortization period are as follows: WeightedAverage Service Years...

  • Page 59
    ... to most employees hired after 2003. In the U.S., health care benefit costs are capped and indexed by 3 percent annually for certain employees retiring on or before April 1, 2004. The future cost for retiree health care benefits is limited to a defined fixed cost based on the years of service for...

  • Page 60
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Summarized financial information about postretirement plans, excluding defined contribution retirement plans, is presented below: Pension Benefits Other Benefits Year Ended December 31 2010 2009 2010 ...

  • Page 61
    ... Obligations at December 31 Pension Benefits 2010 2009 Other Benefits 2010 2009 Discount rate ...Rate of compensation increase ... 5.51% 5.85% 5.44% 5.79% 4.05% 4.09% - - Expected Long-Term Rate of Return and Investment Strategies for the Principal Plans Strategic asset allocation decisions are...

  • Page 62
    ... future returns by asset class, current asset allocation and historical long-term market performance. The weighted-average expected long-term rate of return on pension fund assets used to calculate pension expense for the Principal Plans was 8.19 percent in 2010 compared with 8.47 percent in 2009...

  • Page 63
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Set forth below are the pension plan assets of the Principal Plans measured at fair value as of December 31, 2010 and 2009, together with the inputs used to develop those fair value measurements. Fair ...

  • Page 64
    ... rate levels. Multiple pricing services are typically employed to assist in determining these valuations. Fair values of equity securities and fixed income securities held through units of pooled funds are based on net asset value (NAV) of the units of the pooled fund determined by the fund manager...

  • Page 65
    ...Retirement Contribution Plan and Retirement Contribution Excess Benefit Program to discontinue all contributions to these plans for future plan years (other than for certain employees subject to collective bargaining agreements). Effective January 1, 2010, we adopted a new 401(k) profit sharing plan...

  • Page 66
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Costs charged to expense for our defined contribution pension plans were as follows: 2010 2009 2008 (Millions of dollars) U.S...Outside the U.S...Total ... $75 23 $98 $73 19 $92 $73 21 $94 Note 12....

  • Page 67
    ... tax benefits on stock-based compensation ...Shares repurchased ...Recognition of stock-based compensation ...Dividends declared ...Additional investment in subsidiary and other ...Return on redeemable preferred securities and noncontrolling interests ...Balance at December 31, 2009 ...Comprehensive...

  • Page 68
    ... investments in equity companies by $11 million. The following schedule reflects the effect of the change in ownership interest for this transaction. Year Ended December 31 2009 (Millions of dollars) Net Income attributable to Kimberly-Clark ...Decrease in Kimberly-Clark Corporation's additional...

  • Page 69
    ...-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Accumulated Other Comprehensive Income (Loss) The changes in the components of accumulated other comprehensive income (loss) attributable to Kimberly-Clark are as follows: Year Ended December 31 2010 2009...

  • Page 70
    ..., we are exposed to risks, such as changes in foreign currency exchange rates, interest rates, commodity prices and the value of investments of our defined benefit pension plans. A number of practices are employed to manage these risks, including operating and financing activities and, where deemed...

  • Page 71
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Set forth below is a summary of the fair values of our derivative instruments classified by the risks they are used to manage as of December 31, 2010. Assets Liabilities 2010 2009 2010 2009 (Millions ...

  • Page 72
    ... market risk arising from changes in the price of natural gas. Hedging of this risk is accomplished by entering into forward swap contracts, which are designated as cash flow hedges of specific quantities of natural gas expected to be purchased in future months. As of December 31, 2010, outstanding...

  • Page 73
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Quantitative Information About our Use of Derivative Instruments The following tables display the location and amount of pretax gains and losses reported in the Consolidated Income Statement and ...

  • Page 74
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Fair Values of Derivative Instruments Asset Derivatives at December 31 2010 2009 (Millions of dollars) Balance Sheet Location Derivatives designated as hedging instruments: Interest rate contracts ...

  • Page 75
    ... the primary beneficiary. We account for our interests in these nonconsolidated real estate entities by the equity method of accounting, and have accounted for the related income tax credits and other tax benefits as a reduction in our income tax provision. As of December 31, 2010, we had net equity...

  • Page 76
    ... state statutes, at a number of waste disposal sites, none of which, individually or in the aggregate, is likely to have a material adverse effect on our business, financial condition, results of operations or liquidity. In 2007, the Delaware County Regional Water Quality Authority ("Delcora...

  • Page 77
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Note 17. Income Taxes An analysis of the provision for income taxes follows: Year Ended December 31 2010 2009 2008 (Millions of dollars) Current income taxes: United States ...State ...Other ...

  • Page 78
    ...TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Deferred income tax assets (liabilities) are composed of the following: December 31 2010 2009 (Millions of dollars) Net current deferred income tax asset attributable to: Accrued expenses ...Pension, postretirement and other employee benefits ...Loss...

  • Page 79
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Presented below is a reconciliation of the income tax provision computed at the U.S. federal statutory tax rate to the actual effective provision for income taxes: Year Ended December 31 2010 2009 2008...

  • Page 80
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) As of December 31, 2010, the following tax years remain subject to examination for the major jurisdictions where we conduct business: Jurisdiction Years United States ...United Kingdom ...Canada ......

  • Page 81
    ... of brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, Poise and other brand names. The Consumer Tissue segment manufactures and markets facial and bathroom tissue, paper towels, napkins and related products for household use. Products in this segment are...

  • Page 82
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) • The K-C Professional & Other segment manufactures and markets facial and bathroom tissue, paper towels, napkins, wipers and a range of safety products for the away-from-home marketplace. Products ...

  • Page 83
    ... Tissue ...K-C Professional & Other ...Health Care ...Total ...$34 15 5 18 $72 Sales of Principal Products 2010 2009 2008 (Billions of dollars) Consumer tissue products ...Diapers ...Away-from-home professional products ...All other ...Consolidated ...Consolidated Operations by Geographic Area...

  • Page 84
    ... in the Personal Care and Consumer Tissue businesses, and amounts above primarily reflect operations in Latin America. At December 31, 2010, our equity companies and ownership interest were as follows: Kimberly-Clark Lever Private Limited (India) (50%), Kimberly-Clark de Mexico, S.A.B. de C.V. and...

  • Page 85
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) December 31 2010 NonLIFO 2009 NonLIFO Summary of Inventories LIFO Total LIFO Total Inventories by Major Class: At the lower of cost determined on the FIFO or weighted-average cost methods or ...

  • Page 86
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) Supplemental Cash Flow Statement Data Summary of Cash Flow Effects of Decrease (Increase) in Operating Working Capital(a) Year Ended December 31 2010 2009 2008 Accounts receivable ...Inventories ......

  • Page 87
    ... for business combinations and noncontrolling interests in consolidated financial statements effective January 1, 2009. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Corporation's internal control over financial reporting...

  • Page 88
    ...also reviews with management, the internal auditors and the independent registered public accounting firm the quality and adequacy of our internal control over financial reporting, including compliance matters related to our code of conduct, and the results of internal and external audits. The Audit...

  • Page 89
    ... Vice President and Chief Financial Officer There have been no changes in our internal control over financial reporting identified in connection with the evaluation described above in "Management's Report on Internal Control Over Financial Reporting" that occurred during our fourth fiscal quarter...

  • Page 90
    ... an opinion on the Corporation's internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable...

  • Page 91
    ... for variable interest entities effective January 1, 2010, and for business combinations and noncontrolling interests in consolidated financial statements effective January 1, 2009. /s/ DELOITTE & TOUCHE LLP Deloitte & Touche LLP Dallas, Texas February 23, 2011 ITEM 9B. OTHER INFORMATION None. 87

  • Page 92
    ...Executive Officers of the Registrant" in Part I of this Report. ITEM 11. EXECUTIVE COMPENSATION The information in the sections of the 2011 Proxy Statement captioned "Executive Compensation," "Compensation of Directors" under "Proposal 1. Election of Directors" and "Corporate Governance Information...

  • Page 93
    ... report on Form 10-K. 2. Financial statement schedules. The following information is filed as part of this Form 10-K and should be read in conjunction with the financial statements contained in Item 8: Report of Independent Registered Public Accounting Firm Schedule for Kimberly-Clark Corporation...

  • Page 94
    ...-Clark Corporation Pension Plan, as amended and restated, effective April 17, 2009, incorporated by reference to Exhibit No. (10)i of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2009.* Kimberly-Clark Corporation Supplemental Retirement 401(k) and Profit Sharing Plan...

  • Page 95
    ... herewith. Subsidiaries of the Corporation, filed herewith. Consent of Independent Registered Public Accounting Firm, filed herewith. Powers of Attorney, filed herewith. Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as...

  • Page 96
    ... the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. KIMBERLY-CLARK CORPORATION February 23, 2011 By: /s/ MARK A. BUTHMAN Mark A. Buthman Senior Vice President and Chief Financial Officer Pursuant...

  • Page 97
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008 (Millions of dollars) Balance at Beginning Of Period Additions Charged to Charged to Costs and Other Expenses Accounts(a) Deductions Write-Offs and ...

  • Page 98
    KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008 (Millions of dollars) Balance at Beginning of Period Additions Charged to Costs Charged and to Other (a) Expenses Accounts Description Deductions(b) ...

  • Page 99
    ...Kimberly-Clark should contact Paul Alexander, Vice President-Investor Relations, at (972) 281-1440. Individual stockholders should direct inquiries to Stockholder Services at (972) 281-1522. Investors may also obtain information about Kimberly-Clark and copies of documents released by Kimberly-Clark...

  • Page 100
    ...-Clark's financial information, news releases and other information on our website at www.kimberly-clark.com. This website also contains our Securities and Exchange Commission filings, including Forms 10-K, 10-Q and 8-K. Stockholders may contact Stockholder Services, P.O. Box 612606, Dallas, Texas...

  • Page 101
    ... Committee Chairman of the Board Kellogg Company Nancy J. Karch Audit Committee Retired Director McKinsey & Co. Ian C. Read Management Development and Compensation Committee Nominating and Corporate Governance Committee President and Chief Executive Officer Pfizer, Inc. Linda Johnson Rice...

  • Page 102

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  • Page 104
    Kimberly-Clark Corporation World Headquarters P.O. Box 619100 Dallas, Texas 75261-9100 Toll-Free Investor Information: 800.639.1352 www.kimberly-clark.com