Kimberly-Clark 2010 Annual Report Download - page 73

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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 Consolidated Statement of Other Comprehensive Income (“OCI”) and the location and
fair values of derivative instruments presented in the Consolidated Balance Sheet.
Income Statement Classifications
Gain or (Loss)
Recognized in Income
2010 2009 2008
(Millions of dollars)
Undesignated foreign exchange hedging
instruments ..................... Other (income) and expense, net(a) ... $57 $(95) $ 65
Fair Value Hedges
Foreign exchange contracts .......... Other (income) and expense, net .... $1 $ (6) $ 14
Hedged foreign exchange monetary
assets and liabilities .............. Other (income) and expense, net .... $ (1) $ 6 $(14)
Interest rate swap contracts ........... Interest expense .................. $8 $9 $38
Hedged debt instruments ............ Interest expense .................. $ (8) $ (9) $(38)
Gain or (Loss) Recognized In
OCI
Income Statement
Classification of Gain or
(Loss) Reclassified from
AOCI
Gain or (Loss) Reclassified
from AOCI to Income
2010 2009 2008 2010 2009 2008
(Millions of dollars) (Millions of dollars)
Cash Flow Hedges
Interest rate contracts ...... $ (21) $ 29 $ (3) Interest expense ........ $3 $3 $4
Foreign exchange
contracts .............. —(32) 38 Cost of products sold .... (7) (5) 3
Commodity contracts ...... (16) (26) (29) Cost of products sold .... (13) (43) (8)
Total ................... $ (37) $(29) $ 6 $ (17) $ (45) $ (1)
Net Investment Hedges
Foreign exchange
contracts .............. $ (6) $(18) $ 1 $— $— $—
(a) Gains and (losses) on these instruments primarily relate to derivatives entered into with third parties to manage foreign currency
exchange exposure on remeasurement of non-functional currency denominated monetary assets and liabilities. Consequently, the effect
on earnings from the use of these non-designated derivatives is substantially neutralized by the recorded transactional gains and losses.
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