Kimberly-Clark 2010 Annual Report Download - page 54

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
cash acquired. The excess of the purchase price over the fair values of assets and liabilities acquired resulted in
recognition of goodwill of $153 million, none of which is deductible for income tax purposes. In 2009, I-Flow’s
net sales were 1 percent of the Health Care business segment net sales.
The Baylis and I-Flow acquisitions are consistent with our global business plan strategy to invest in the
higher-growth, higher-margin medical device market.
During 2008, we acquired a personal care business in Trinidad and Tobago, the remaining 50 percent
interest in our South African subsidiary, Kimberly-Clark of South Africa (Pty.) Limited, and the remaining 40
percent interest in our Chilean subsidiary, Kimberly-Clark Chile, S.A. The cost of these acquisitions totaled
$98 million. The allocation of the purchase price to the fair values of assets and liabilities acquired resulted in
recognition of goodwill of $44 million, none of which is deductible for income tax purposes.
The CKC and 2008 acquisitions are consistent with our strategy of investing for growth in rapidly growing
countries, and are expected to leverage our scale and capabilities 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
Consumer
Tissue
K-C
Professional
& Other
Health
Care Total
(Millions of dollars)
Balance at December 31, 2008 ........................ $613 $577 $307 $1,246 $2,743
Acquisitions ...................................... — — 95 172 267
Currency and other ................................. 132 92 33 8 265
Balance at December 31, 2009 ........................ 745 669 435 1,426 3,275
Currency and other ................................. 58 45 16 9 128
Balance at December 31, 2010 ........................ $803 $714 $451 $1,435 $3,403
Other Intangible Assets
Intangible assets subject to amortization consist of the following at December 31:
2010 2009
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
(Millions of dollars)
Trademarks .......................................... $257 $141 $266 $139
Patents and developed technologies ....................... 157 48 153 44
Other ............................................... 93 42 86 25
Total ............................................ $507 $231 $505 $208
Amortization expense for intangible assets was $25 million in 2010, $18 million in 2009 and $12 million in
2008. Amortization expense is estimated to be $23 million in 2011, $28 million in 2012, $37 million in 2013,
$38 million in 2014 and $31 million 2015.
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