Kimberly-Clark 2010 Annual Report Download - page 74

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair Values of Derivative Instruments
Asset Derivatives at
December 31
Balance Sheet Location 2010 2009
(Millions of dollars)
Derivatives designated as hedging instruments:
Interest rate contracts ............................... Other current assets . . . $— $32
Interest rate contracts ............................... Other assets ......... 24 9
Foreign exchange contracts ........................... Other current assets . . . 45
Foreign exchange contracts ........................... Other assets ......... 1—
Total ...................................................................... $29 $46
Undesignated derivatives:
Foreign exchange contracts ........................... Other current assets . . . $41 $12
Total asset derivatives ........................................................ $70 $58
Liability Derivatives at
December 31
Balance Sheet Location 2010 2009
(Millions of dollars)
Derivatives designated as hedging instruments:
Interest rate contracts ............................. Other liabilities ...... $2 $—
Foreign exchange contracts ........................ Accrued expenses .... 16 21
Foreign exchange contracts ........................ Other liabilities ...... 3—
Commodity contracts ............................. Accrued expenses .... 73
Total ................................................................... $28 $24
Undesignated derivatives:
Foreign exchange contracts and other ................ Accrued expenses .... $20 $63
Total liability derivatives ................................................... $48 $87
Note 14. Real Estate Variable Interest Entities
We participate in the U.S. affordable housing and historic renovation real estate markets. Investments in
these markets are encouraged by laws enacted by the U.S. Congress and related federal income tax rules and
regulations. Accordingly, these investments generate income tax credits and tax losses that are used to reduce our
income tax liabilities. We invested in these markets through (i) investments in wholly-owned or majority-owned
entities, (ii) limited liability companies as a nonmanaging member and (iii) investments in various funds in which
we are one of many noncontrolling investors. The entities borrow money from third parties generally on a
nonrecourse basis and invest in and own various real estate projects.
We consolidate real estate entities in which we are the primary beneficiary. In most of these entities we also
have voting control. We determined we are the primary beneficiary of these variable interests based on
qualitative analysis. The assets of these entities are classified principally as property, plant and equipment and
have a carrying amount aggregating $37 million at December 31, 2010 that serves as collateral for the obligations
of these ventures. The obligations have a carrying amount aggregating $25 million, of which $23 million is
included in debt payable within one year and $2 million is included in long-term debt. Neither the creditors nor
the other beneficial interest holders of these consolidated ventures have recourse to the general credit of
Kimberly-Clark, except for $8 million of permanent financing debt, which we guarantee. We have made
insignificant noncontractual cash infusions to these entities.
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