Kimberly-Clark 2010 Annual Report Download - page 28

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PART II
(Continued)
Contractual Obligations:
The following table presents our total contractual obligations for which cash flows are fixed or
determinable.
Total 2011 2012 2013 2014 2015 2016+
(Millions of dollars)
Contractual Obligations
Long-term debt ........................ $ 5,385 $ 265 $ 427 $ 550 $516 $355 $3,272
Interest payments on long-term debt ....... 2,690 287 256 242 214 206 1,485
Redemption of preferred securities ........ 501 501 — — — — —
Returns on redeemable preferred
securities ........................... 138 54 28 28 28 — —
Operating leases ....................... 795 194 143 118 103 84 153
Unconditional purchase obligations ........ 1,203 616 320 90 68 44 65
Open purchase orders ................... 1,951 1,894 15 11 8 8 15
Total contractual obligations ................. $12,663 $3,811 $1,189 $1,039 $937 $697 $4,990
Obligations Commentary:
• Projected interest payments for variable-rate debt were calculated based on the outstanding principal
amounts and prevailing market rates as of December 31, 2010.
• Returns on redeemable preferred securities reflect required return payments through the next redemption
election date by instrument class. See Item 8, Note 9 to the Consolidated Financial Statements.
• The unconditional purchase obligations are for the purchase of raw materials, primarily pulp, and
utilities. Although we are primarily liable for payments on the above operating leases and unconditional
purchase obligations, based on historic operating performance and forecasted future cash flows, we
believe exposure to losses, if any, under these arrangements is not material.
• The open purchase orders displayed in the table represent amounts for goods and services we have
negotiated for delivery.
We will fund our defined benefit pension plans to meet or exceed statutory requirements and currently
expect to contribute approximately $400 million to $500 million to these plans in 2011. Pension contributions are
not included in the table.
The table does not include future payments that we will make for other postretirement benefit obligations.
Those amounts are estimated using actuarial assumptions, including expected future service, to project the future
obligations. Based upon those projections, we anticipate making annual payments for these obligations of
approximately $68 million in 2011 to more than $74 million by 2020.
Accrued income tax liabilities for uncertain tax positions have not been presented in the table due to
uncertainty as 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 to have the subsidiary redeem the first class in December 2011 and the second class in
December 2014 and each seven-year anniversary thereafter. In December 2010, the holder of the securities
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