Kimberly-Clark 2010 Annual Report Download - page 55

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 8. Debt
Long-term debt is comprised of the following:
Weighted-
Average
Interest
Rate Maturities
December 31
2010 2009
(Millions of dollars)
Notes and debentures ..................................... 5.97% 2012 – 2037 $4,286 $4,483
Dealer remarketable securities .............................. 4.43% 2011 – 2016 200 —
Industrial development revenue bonds ........................ 0.35% 2015 – 2037 280 280
Bank loans and other financings in various currencies ............ 2.61% 2011 – 2045 619 532
Total long-term debt ...................................... 5,385 5,295
Less current portion ...................................... 265 503
Long-term portion ........................................ $5,120 $4,792
Fair value of total long-term debt at December 31, 2010 and 2009 was $6.0 billion and $5.8 billion,
respectively. Fair values were estimated based on quoted prices for financial instruments for which all significant
inputs were observable, either directly or indirectly.
Scheduled maturities of long-term debt for the next five years are $265 million in 2011, $427 million in
2012, $550 million in 2013, $516 million in 2014 and $355 million in 2015.
During 2008, we issued $500 million 7.5% Notes due November 1, 2018. We used the net proceeds to
reduce borrowings under our commercial paper program.
During the third quarter of 2010, we issued $250 million 3.625% Notes due August 1, 2020. We used the
net proceeds to repay floating rate notes that were due July 30, 2010.
During 2006, we issued $200 million of dealer remarketable securities that have a final maturity in 2016.
The remarketing provisions of these debt instruments require that each year the securities either be remarketed by
the dealer or repaid. For the remarketing in 2009, the dealer remarketed the securities to our wholly-owned
subsidiary, which held them until the remarketing date in 2010. The investment in these securities by the
subsidiary and our debt obligation for these securities were eliminated in consolidation. In the fourth quarter of
2010, the dealer exercised its option to remarket the securities for another year, and remarketed the securities to
third parties at a rate of 4.43%. The proceeds from the issuance in 2010 were used for general corporate
purposes.
At December 31, 2010, the fair value of the dealer’s option to remarket the securities each year through
2016 is estimated to be $16.4 million. We would be obligated to pay the dealer the fair value of its option in the
event the securities are not remarketed for any reason other than the dealer’s election not to remarket or the
failure of the dealer to successfully remarket the securities if the conditions to a remarketing are satisfied. We do
not expect this contingency to materialize.
On February 3, 2011, we issued $250 million of 3.875% notes due March 1, 2021 and $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.
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