Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 04, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | KIMBERLY CLARK CORP | ||
Entity Central Index Key | 55,785 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 360,899,707 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 38,600,000,000 |
Consolidated Income Statement
Consolidated Income Statement - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Income Statement [Abstract] | |||||
Net Sales | $ 18,591 | $ 19,724 | $ 19,561 | ||
Cost of products sold | 11,967 | 13,041 | 12,952 | ||
Gross Profit | 6,624 | 6,683 | 6,609 | ||
Marketing, research and general expenses | 3,443 | 3,709 | 3,699 | ||
Other (income) and expense, net | 1,568 | 453 | [1],[2] | 7 | [1],[2] |
Operating Profit | 1,613 | 2,521 | 2,903 | ||
Interest income | 17 | 18 | 20 | ||
Interest expense | (295) | (284) | (282) | ||
Income From Continuing Operations Before Income Taxes and Equity Interests | 1,335 | 2,255 | 2,641 | ||
Provision for income taxes | (418) | (856) | (828) | ||
Income From Continuing Operations Before Equity Interests | 917 | 1,399 | 1,813 | ||
Share of net income of equity companies | 149 | 146 | 205 | ||
Income From Continuing Operations | 1,066 | 1,545 | 2,018 | ||
Income from discontinued operations, net of income taxes | 0 | 50 | 203 | ||
Net Income | 1,066 | 1,595 | 2,221 | ||
Net income attributable to noncontrolling interests in continuing operations | (53) | (69) | (79) | ||
Net Income Attributable to Kimberly-Clark Corporation | $ 1,013 | $ 1,526 | $ 2,142 | ||
Basic | |||||
Continuing operations | $ 2.78 | $ 3.94 | $ 5.05 | ||
Discontinued operations | 0 | 0.13 | 0.53 | ||
Net income | 2.78 | 4.07 | 5.58 | ||
Diluted | |||||
Continuing operations | 2.77 | 3.91 | 5.01 | ||
Discontinued operations | 0 | 0.13 | 0.52 | ||
Net income | 2.77 | 4.04 | 5.53 | ||
Cash Dividends Declared | $ 3.52 | $ 3.36 | $ 3.24 | ||
[1] | Other (income) and expense, net for 2015 and 2014 include charges of $40 and $421, respectively, related to the remeasurement of the Venezuelan balance sheet. In addition, 2015 includes charges of $108 for the deconsolidation of our Venezuelan operations and $1,358 for charges related to pension settlements and 2014 includes a charge of $35 related to a regulatory dispute in the Middle East. The results for 2013 include a balance sheet remeasurement charge of $36 due to a devaluation of the Venezuelan bolivar and a charge of $5 for European strategic changes. | ||||
[2] | Segment operating profit excludes other (income) and expense, net and income and expenses not associated with the business segments. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,066 | $ 1,595 | $ 2,221 |
Other Comprehensive Income (Loss), Net of Tax | |||
Unrealized currency translation adjustments | (922) | (835) | (494) |
Employee postretirement benefits | 942 | (275) | 302 |
Other | 5 | 20 | 17 |
Total Other Comprehensive Income (Loss), Net of Tax | 25 | (1,090) | (175) |
Comprehensive Income | 1,091 | 505 | 2,046 |
Comprehensive income attributable to noncontrolling interests | (33) | (57) | (87) |
Comprehensive Income Attributable to Kimberly-Clark Corporation | $ 1,058 | $ 448 | $ 1,959 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 619 | $ 789 |
Accounts receivable, net | 2,281 | 2,223 |
Inventories | 1,909 | 1,892 |
Other current assets | 617 | 655 |
Total Current Assets | 5,426 | 5,559 |
Property, Plant and Equipment, Net | 7,104 | 7,359 |
Investments in Equity Companies | 247 | 257 |
Goodwill | 1,446 | 1,628 |
Other Assets | 619 | 723 |
TOTAL ASSETS | 14,842 | 15,526 |
Current Liabilities | ||
Debt payable within one year | 1,669 | 1,326 |
Trade accounts payable | 2,612 | 2,616 |
Accrued expenses | 1,750 | 1,974 |
Dividends payable | 318 | 310 |
Total Current Liabilities | 6,349 | 6,226 |
Long-Term Debt | 6,106 | 5,630 |
Noncurrent Employee Benefits | 1,137 | 1,693 |
Deferred Income Taxes | 766 | 587 |
Other Liabilities | 380 | 319 |
Redeemable Preferred Securities of Subsidiaries | 64 | 72 |
Stockholders' Equity (Deficit) | ||
Preferred stock - no par value - authorized 20.0 million shares, none issued | 0 | 0 |
Common stock - $1.25 par value - authorized 1.2 billion shares; issued 378.6 and 428.6 million shares at December 31, 2015 and 2014, respectively | 473 | 536 |
Additional paid-in capital | 609 | 632 |
Common stock held in treasury, at cost - 17.7 and 63.3 million shares at December 31, 2015 and 2014, respectively | (2,972) | (5,597) |
Retained earnings | 4,994 | 8,470 |
Accumulated other comprehensive income (loss) | (3,278) | (3,312) |
Total Kimberly-Clark Corporation Stockholders' Equity (Deficit) | (174) | 729 |
Noncontrolling Interests | 214 | 270 |
Total Stockholders' Equity | 40 | 999 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 14,842 | $ 15,526 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $ 1.25 | $ 1.25 |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 |
Common stock, shares issued | 378,600,000 | 428,600,000 |
Common stock held in treasury, shares | 17,737,000 | 63,261,000 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock Issued | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Noncontrolling InterestsDividend Declared |
Beginning Balance (in shares) at Dec. 31, 2012 | 428,597,000 | |||||||
Beginning Balance at Dec. 31, 2012 | $ 536 | $ 481 | $ (2,796) | $ 8,823 | $ (2,059) | $ 302 | ||
Beginning Balance, treasury stock (in shares) at Dec. 31, 2012 | 39,322,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income in stockholders' equity | $ 2,221 | 2,142 | ||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 48 | |||||||
Other comprehensive income, net of tax | ||||||||
Unrealized translation | (494) | (499) | 5 | |||||
Employee postretirement benefits | 302 | 298 | 4 | |||||
Other | 17 | 18 | (1) | |||||
Stock-based awards exercised or vested | (33) | $ 264 | ||||||
Stock-based awards exercised or vested (in shares) | (4,108,000) | |||||||
Income tax benefits on stock-based compensation | $ 35 | 46 | ||||||
Shares repurchased (in shares) | 12,584,000 | |||||||
Shares repurchased | $ (1,214) | |||||||
Recognition of stock-based compensation | 92 | |||||||
Dividends declared | (1,244) | |||||||
Distributions to noncontrolling interests | $ (39) | |||||||
Other | 8 | (7) | (35) | |||||
Ending Balance (in shares) at Dec. 31, 2013 | 428,597,000 | |||||||
Ending Balance at Dec. 31, 2013 | $ 536 | 594 | (3,746) | 9,714 | (2,242) | 284 | ||
Ending Balance, treasury stock (in shares) at Dec. 31, 2013 | 47,798,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income in stockholders' equity | $ 1,595 | 1,526 | ||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 39 | |||||||
Other comprehensive income, net of tax | ||||||||
Unrealized translation | (835) | (819) | (15) | |||||
Employee postretirement benefits | (275) | (278) | 3 | |||||
Other | 20 | 19 | 1 | |||||
Stock-based awards exercised or vested | (54) | $ 180 | ||||||
Stock-based awards exercised or vested (in shares) | (2,783,000) | |||||||
Income tax benefits on stock-based compensation | 19 | 32 | ||||||
Shares repurchased (in shares) | 18,246,000 | |||||||
Shares repurchased | $ (2,031) | |||||||
Recognition of stock-based compensation | 52 | |||||||
Dividends declared | (1,256) | |||||||
Spin-off of health care business | (1,505) | 9 | ||||||
Distributions to noncontrolling interests | (43) | |||||||
Other | 8 | (9) | (1) | 1 | ||||
Ending Balance (in shares) at Dec. 31, 2014 | 428,597,000 | |||||||
Ending Balance at Dec. 31, 2014 | $ 999 | $ 536 | 632 | (5,597) | 8,470 | (3,312) | 270 | |
Ending Balance, treasury stock (in shares) at Dec. 31, 2014 | 63,261,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income in stockholders' equity | $ 1,066 | 1,013 | ||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 48 | |||||||
Other comprehensive income, net of tax | ||||||||
Unrealized translation | (922) | (905) | (17) | |||||
Employee postretirement benefits | 942 | 945 | (3) | |||||
Other | 5 | 5 | ||||||
Stock-based awards exercised or vested | (47) | $ 186 | ||||||
Stock-based awards exercised or vested (in shares) | (2,888,000) | |||||||
Income tax benefits on stock-based compensation | 29 | 32 | ||||||
Shares repurchased (in shares) | 7,364,000 | |||||||
Shares repurchased | $ (833) | |||||||
Recognition of stock-based compensation | 75 | |||||||
Dividends declared | (1,280) | |||||||
Distributions to noncontrolling interests | $ (36) | |||||||
Adjustments to Additional Paid in Capital, Decrease from Purchase of Noncontrolling Interests | (94) | (94) | ||||||
Adjustments to Accumulated Other Comprehensive Income (Loss), Decrease from Purchase of Noncontrolling Interest | (12) | |||||||
Shares purchased from noncontrolling interest | 45 | |||||||
Other | 11 | 1 | (3) | |||||
Shares retired | (50,000,000) | |||||||
Shares retired | $ (63) | $ 3,272 | (3,209) | |||||
Ending Balance (in shares) at Dec. 31, 2015 | 378,597,000 | |||||||
Ending Balance at Dec. 31, 2015 | $ 40 | $ 473 | $ 609 | $ (2,972) | $ 4,994 | $ (3,278) | $ 214 | |
Ending Balance, treasury stock (in shares) at Dec. 31, 2015 | 17,737,000 |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 1,066 | $ 1,595 | $ 2,221 |
Depreciation and amortization | 746 | 862 | 863 |
Asset impairments | 22 | 42 | 45 |
Stock-based compensation | 75 | 52 | 92 |
Deferred income taxes | (255) | 63 | 151 |
Net (gains) losses on asset dispositions | 17 | 21 | 11 |
Equity companies' earnings (in excess of) less than dividends paid | (10) | 28 | (36) |
(Increase) decrease in operating working capital | (445) | (176) | (158) |
Postretirement benefits | 930 | (102) | (158) |
Charge for Venezuelan Balance Sheet Remeasurement and Deconsolidation | 153 | ||
Charges related to Venezuelan Operations | 462 | 36 | |
Other | 7 | (2) | (27) |
Cash Provided by Operations | 2,306 | 2,845 | 3,040 |
Investing Activities | |||
Capital spending | (1,056) | (1,039) | (953) |
Acquisitions of businesses | 0 | 0 | (32) |
Proceeds from dispositions of property | 27 | 38 | 129 |
Proceeds from sales of investments | 0 | 127 | 26 |
Investments in time deposits | (146) | (151) | (93) |
Maturities of time deposits | 164 | 239 | 94 |
Other | (39) | 16 | (15) |
Cash Used for Investing | (1,050) | (770) | (844) |
Financing Activities | |||
Cash dividends paid | (1,272) | (1,256) | (1,223) |
Change in short-term debt | 303 | 721 | (287) |
Debt proceeds | 1,100 | 1,257 | 890 |
Debt repayments | (553) | (123) | (544) |
Redemption of redeemable preferred securities of subsidiary | 0 | (500) | 0 |
Cash paid on redeemable preferred securities of subsidiaries | (3) | (34) | (27) |
Proceeds from exercise of stock options | 140 | 127 | 232 |
Acquisitions of common stock for the treasury | (861) | (1,939) | (1,216) |
Cash transferred to Halyard Health, Inc. related to spin-off | 0 | (120) | 0 |
Proceeds from (Payments to) Noncontrolling Interests | (151) | 0 | 0 |
Other | (1) | (26) | (10) |
Cash Used for Financing | (1,298) | (1,893) | (2,185) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (128) | (447) | (63) |
Increase (Decrease) in Cash and Cash Equivalents | (170) | (265) | (52) |
Cash and Cash Equivalents - Beginning of Year | 789 | 1,054 | 1,106 |
Cash and Cash Equivalents - End of Year | $ 619 | $ 789 | $ 1,054 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Basis of Presentation The Consolidated Financial Statements present the accounts of Kimberly-Clark Corporation and all subsidiaries in which it has a controlling financial interest as if they were a single economic entity in conformity with accounting principles generally accepted in the United States of America ("GAAP"). All intercompany transactions and accounts are eliminated in consolidation. The terms "Corporation," "Kimberly-Clark," "we," "our," and "us" refer to Kimberly-Clark Corporation and all subsidiaries in which it has a controlling financial interest. Dollar amounts are reported in millions, except per share dollar amounts, unless otherwise noted. In 2014, we completed the spin-off of our health care business, creating a stand-alone, publicly traded health care company, Halyard Health, Inc. ("Halyard"), by distributing 100 percent of the outstanding shares of Halyard to holders of our common stock. See Note 3 for more information. The spun-off health care business is presented as discontinued operations on the Consolidated Income Statement for all periods presented. The health care business' balance sheet, other comprehensive income and cash flows are included within our Consolidated Balance Sheet, Consolidated Statement of Stockholders' Equity, Consolidated Statement of Comprehensive Income and Consolidated Cash Flow Statement through October 31, 2014. Accounting for Venezuelan Operations Prior to December 31, 2015 , we accounted for our operations in Venezuela using highly inflationary accounting. Since February 2013, the Central Bank of Venezuela's regulated currency exchange system rate has been 6.3 bolivars per U.S. dollar. During March 2013, the Venezuelan government announced a complementary currency exchange system, SICAD. In February 2014, the president of Venezuela announced that another floating rate exchange system (referred to as SICAD II) would be initiated. On February 10, 2015, the Venezuelan government announced the addition of a new foreign currency exchange system referred to as the Marginal Currency System, or SIMADI, along with the elimination of the SICAD II system. We have historically measured results in Venezuela at the rate in which we transact our business. We have qualified for access to the official exchange rate because we manufacture and sell price-controlled products. Since March 2013, exchange transactions have taken place through letters of credit which resulted in an effective exchange rate of 6.3 bolivars per U.S. dollar and through approved transactions using the regulated currency exchange system, which were also at a 6.3 exchange rate. To date, we have not been invited to participate in SICAD, and currency exchanges obtained using the SIMADI system have been minimal. The SIMADI exchange rate at December 31, 2015 was 199 bolivars per U.S. dollar. We continued to measure results at the 6.3 rate through December 31, 2014 ; however, given the level of uncertainty and lack of liquidity in Venezuela, we remeasured our local currency-denominated balance sheet as of December 31, 2014 at the year-end floating SICAD II exchange rate of 50 bolivars per U.S. dollar as we believed this was the most accessible rate available in the absence of exchange at 6.3 bolivars per U.S. dollar. This remeasurement resulted in a nondeductible charge of $462 of which $421 is recorded in other (income) and expense, net and $41 is recorded in cost of products sold for the year ended December 31, 2014 . With the elimination of SICAD II in February 2015, we remeasured our local currency-denominated balance sheet during the first quarter of 2015 at the applicable floating SIMADI exchange rate as we believed this was the most accessible rate available to us in the absence of exchange at 6.3 bolivars per U.S. dollar. This remeasurement resulted in a nondeductible charge of $45 in the Consolidated Income Statement for the three months ended March 31, 2015, with $5 recorded in cost of products sold and $40 recorded in other (income) and expense, net. We continued to use the applicable floating SIMADI exchange rate to measure our results of operations for the remainder of 2015. Remeasurement charges since March 31, 2015 were not significant. As a result of the continued deterioration of conditions in the country, including a slowdown in the availability of foreign exchange, we concluded that we no longer meet the accounting criteria for control over our business in Venezuela and we deconsolidated our Venezuelan operations on December 31, 2015 . As a result of deconsolidating our Venezuelan operations, we recorded an after tax charge of $102 , $108 pre-tax, in other (income) and expense, net in the fourth quarter of 2015. This charge included the write-off of our investment in our Venezuelan operations, related unrealized translation adjustments and elimination of intercompany amounts. Beginning in the first quarter of 2016, we will no longer include the results of our Venezuelan business in our consolidated financial statements. Net sales of K-C Venezuela represented approximately 3 percent and 2 percent of consolidated net sales for the years ended December 31, 2014 and 2013 , respectively, and were insignificant in 2015 . Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Estimates are used in accounting for, among other things, sales incentives and trade promotion allowances, employee postretirement benefits, and deferred income taxes and potential assessments. Cash Equivalents Cash equivalents are short-term investments with an original maturity date of three months or less. Inventories and Distribution Costs Most U.S. inventories are valued at the lower of cost, using the Last-In, First-Out ("LIFO") method, or market. The balance of the U.S. inventories and inventories of consolidated operations outside the U.S. are valued at the lower of cost and net realizable value using either the First-In, First-Out ("FIFO") or weighted-average cost methods. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Distribution costs are classified as cost of products sold. Property and Depreciation Property, plant and equipment are stated at cost and are depreciated on the straight-line method. Buildings are depreciated over their estimated useful lives, primarily 40 years . Machinery and equipment are depreciated over their estimated useful lives, primarily ranging from 16 to 20 years . Purchases of computer software, including external costs and certain internal costs (including payroll and payroll-related costs of employees) directly associated with developing significant computer software applications for internal use, are capitalized. Computer software costs are amortized on the straight-line method over the estimated useful life of the software, which generally does not exceed 5 years . Estimated useful lives are periodically reviewed and, when warranted, changes are made to them. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss would be indicated when estimated undiscounted future cash flows from the use and eventual disposition of an asset group, which are identifiable and largely independent of the cash flows of other asset groups, are less than the carrying amount of the asset group. Measurement of an impairment loss would be based on the excess of the carrying amount of the asset group over its fair value. Fair value is measured using discounted cash flows or independent appraisals, as appropriate. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the Consolidated Balance Sheet and any gain or loss on the transaction is included in income. Goodwill and Other Intangible Assets Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is not amortized, but rather is assessed for impairment annually and whenever events and circumstances indicate that impairment may have occurred. Impairment testing compares the reporting unit carrying amount of goodwill with its fair value. If the reporting unit carrying amount of goodwill exceeds its fair value, an impairment charge would be recorded. In our evaluation of goodwill impairment, we have the option to first assess qualitative factors such as macroeconomic, industry and competitive conditions, legal and regulatory environment, historical and projected financial performance, significant changes in the reporting unit and the magnitude of excess fair value over carrying amount from the previous quantitative impairment testing. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test using discounted cash flows to estimate fair value must be performed. On the other hand, if the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is more than its carrying value, then further quantitative testing is not required. For 2015, we have completed the required annual assessment of goodwill for impairment for all of our reporting units using a qualitative assessment as of the first day of the third quarter, and have determined that it is more likely than not that the fair value is more than the carrying amount for each of our reporting units. Intangible assets with finite lives are amortized over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Estimated useful lives range from 2 to 20 years for trademarks, 5 to 15 years for patents and developed technologies, and 5 to 15 years for other intangible assets. An impairment loss would be indicated when estimated undiscounted future cash flows from the use of the asset are less than its carrying amount. An impairment loss would be measured as the difference between the fair value (based on discounted future cash flows) and the carrying amount of the asset. Investments in Equity Companies Investments in companies which we do not control but over which we have the ability to exercise significant influence and that, in general, are at least 20 percent-owned by us, are stated at cost plus equity in undistributed net income. These investments are evaluated for impairment when warranted. An impairment loss would be recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other than temporary. In judging "other than temporary," we would consider the length of time and extent to which the fair value of the equity company investment has been less than the carrying amount, the near-term and longer-term operating and financial prospects of the equity company, and our longer-term intent of retaining the investment in the equity company. Revenue Recognition Sales revenue is recognized at the time of product shipment or delivery, depending on when title passes, to unaffiliated customers, and when all of the following have occurred: a firm sales agreement is in place, pricing is fixed or determinable, and collection is reasonably assured. Sales are reported net of returns, consumer and trade promotions, rebates and freight allowed. Taxes imposed by governmental authorities on our revenue-producing activities with customers, such as sales taxes and value-added taxes, are excluded from net sales. Sales Incentives and Trade Promotion Allowances The cost of promotion activities provided to customers is classified as a reduction in sales revenue. In addition, the estimated redemption value of consumer coupons is recorded at the time the coupons are issued and classified as a reduction in sales revenue. Rebate and promotion accruals are based on estimates of the quantity of customer sales and the promotion accruals also consider estimates of the number of consumer coupons that will be redeemed, timing of promotional activities and forecasted costs for activities within the promotional programs. Advertising Expense Advertising costs are expensed in the year the related advertisement or campaign is first presented by the media. For interim reporting purposes, advertising expenses are charged to operations as a percentage of sales based on estimated sales and related advertising expense for the full year. Research Expense Research and development costs are charged to expense as incurred. Foreign Currency Translation The income statements of foreign operations, other than those in highly inflationary economies, are translated into U.S. dollars at rates of exchange in effect each month. The balance sheets of these operations are translated at period-end exchange rates, and the differences from historical exchange rates are reflected in stockholders' equity as unrealized translation adjustments. Derivative Instruments and Hedging Our policies allow the use of derivatives for risk management purposes and prohibit their use for speculation. Our policies also prohibit the use of any leveraged derivative instrument. Consistent with our policies, foreign currency derivative instruments, interest rate swaps and locks, and the majority of commodity hedging contracts are entered into with major financial institutions. At inception we formally designate certain derivatives as cash flow, fair value or net investment hedges and establish how the effectiveness of these hedges will be assessed and measured. This process links the derivatives to the transactions or financial balances they are hedging. Changes in the fair value of derivatives not designated as hedging instruments are recorded in earnings as they occur. All derivative instruments are recorded as assets or liabilities on the balance sheet at fair value. Changes in the fair value of derivatives are either recorded in the income statement or other comprehensive income, as appropriate. The gain or loss on derivatives designated as fair value hedges and the offsetting loss or gain on the hedged item attributable to the hedged risk are included in income in the period that changes in fair value occur. The effective portion of the gain or loss on derivatives designated as cash flow hedges is included in other comprehensive income in the period that changes in fair value occur, and is reclassified to income in the same period that the hedged item affects income. The gain or loss on derivatives designated as hedges of investments in foreign subsidiaries is recognized in other comprehensive income to offset the change in value of the net investments being hedged. Any ineffective portion of cash flow hedges and net investment hedges is immediately recognized in income. Certain foreign-currency derivative instruments not designated as hedging instruments have been entered into to manage a portion of our foreign currency transactional exposures. The gain or loss on these derivatives is included in income in the period that changes in their fair values occur. See Note 13 for disclosures about derivative instruments and hedging activities. New Accounting Standards In July 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, Simplifying the Measurement of Inventory . This ASU changes the measurement principle for inventories valued under the FIFO or weighted-average methods from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined by the FASB as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU does not change the measurement principles for inventories valued under the LIFO method. We adopted this ASU on September 30, 2015. The adoption of this ASU did not have a material effect on our Consolidated Financial Statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . Under ASU 2015-17, a reporting entity is required to classify deferred tax assets and liabilities as noncurrent in a classified statement of financial position. Current guidance requiring the offsetting of deferred tax assets and liabilities of a tax-paying component of an entity and presentation as a single noncurrent amount is not affected. This ASU is effective for public business entities issuing financial statements for the annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for financial statements as of the beginning of an interim or annual reporting period. Entities may apply the update prospectively to all deferred tax assets and liabilities and taxes, or retrospectively for all periods presented. The effects of this update on our financial position, results of operations and cash flows are not expected to be material. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which makes limited amendments to the guidance in U.S. GAAP on the classification and measurement of financial instruments. The update significantly revises an entity's accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. The update will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The effects of this update on our financial position, results of operations and cash flows are not expected to be material. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The standard is effective for public entities for annual and interim periods beginning after December 15, 2017. Early adoption is permitted as of one year prior to the current effective date. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The effects of this standard on our financial position, results of operations and cash flows are not yet known. |
2014 Organization Restructuring
2014 Organization Restructuring | 12 Months Ended |
Dec. 31, 2015 | |
2014 Organization Restructuring | |
Restructuring Cost and Reserve | |
2014 Organization Restructuring | 2014 Organization Restructuring In October 2014, we initiated a restructuring plan in order to improve organization efficiency and offset the impact of stranded overhead costs resulting from the spin-off of our health care business. The restructuring is intended to improve our underlying profitability and increase our flexibility to invest in targeted growth initiatives, brand building and other capabilities critical to delivering future growth. The restructuring is expected to be completed by the end of 2016 , with total costs, primarily severance, anticipated to be $130 to $160 after tax ( $190 to $230 pre-tax). Cash costs are projected to be approximately 80 percent of the total charges. The restructuring is expected to impact all of our business segments and our organizations in all major geographies. Charges were recorded in the following income statement line items: Year Ended December 31 2015 2014 Cost of products sold $ 23 $ 40 Marketing, research and general expenses 40 93 Provision for income taxes (21 ) (38 ) Net charges $ 42 $ 95 Cash payments of $86 were made during 2015 related to the restructuring. Cash payments in 2014 were not material. |
Spinoff of Health Care Business
Spinoff of Health Care Business and Related Costs | 12 Months Ended |
Dec. 31, 2015 | |
Health Care Spin-off | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |
Spin-Off of Health Care Business and Related Costs | Spin-Off of Health Care Business and Related Costs On October 31, 2014, we completed the spin-off of our health care business, and each of our shareholders of record as of the close of business on October 23, 2014 (the "Record Date") received one share of Halyard common stock for every 8 shares of our common stock held as of the Record Date. The distribution was structured to be tax free to our U.S. shareholders for U.S. federal income tax purposes. After the distribution, we do not beneficially own any shares of Halyard common stock. The results of the health care discontinued operations exclude certain corporate costs which were allocated to the health care segment historically and we expect to continue to incur these costs after the spin-off. These include costs related to supply chain, finance, legal, information technology, human resources, compliance, shared services, insurance, employee benefits and incentives, and stock-based compensation. On a pre-tax basis, these costs were $70 for the ten months ended October 31, 2014 and $85 in 2013 . To evaluate, plan and execute the spin-off, we incurred $157 of pre-tax charges ( $138 after tax) in transaction and related costs, including the exit of one of Halyard's health care glove manufacturing facilities in Thailand and outsourcing of the related production. These charges and the related tax impact are recorded in Income from discontinued operations, net of income taxes. In order to implement the spin-off, we entered into certain agreements with Halyard to effect our legal and structural separation; govern the relationship between us; and allocate various assets, liabilities and obligations between us, including, among other things, employee benefits, intellectual property and tax-related assets and liabilities. We also entered into a transition services agreement with Halyard, whereby we provided certain administrative and other services for a limited time, a tax matters agreement, an employee matters agreement, intellectual property agreements, manufacturing and supply agreements, distribution agreements and non-competition agreements. |
European Strategic Changes
European Strategic Changes | 12 Months Ended |
Dec. 31, 2015 | |
European Strategic Changes | |
Restructuring Cost and Reserve | |
Restructuring and Related Activities Disclosure | European Strategic Changes In 2012, we approved strategic changes related to our Western and Central European consumer and professional businesses to focus our resources and investments on stronger market positions and growth opportunities. We exited the diaper category in that region, with the exception of the Italian market, and divested or exited some lower-margin businesses, mostly in consumer tissue, in certain markets. The changes primarily affected our consumer businesses, with a modest impact on K - C Professional ("KCP"). The restructuring actions commenced in 2012 and were completed by December 31, 2014. Restructuring actions related to the strategic changes involved the sale or closure of five of our European manufacturing facilities and streamlining of our administrative organization. After tax charges of $30 and $66 were incurred in connection with the European strategic changes in 2014 and 2013, respectively. Cumulative pre-tax charges between 2012 and 2014 for these strategic changes were $413 ( $338 after tax). Cash payments of $41 and $156 were made during 2014 and 2013 , respectively, related to the restructuring. |
Fair Value Information
Fair Value Information | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Information | Fair Value Information The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are: Level 1—Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2—Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3—Prices or valuations that require inputs that are significant to the valuation and are unobservable. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. During 2015 and 2014 , there were no significant transfers among level 1, 2 or 3 fair value determinations. Company-owned life insurance ("COLI") assets and derivative assets and liabilities are measured on a recurring basis at fair value. COLI assets were $57 and $58 at December 31, 2015 and 2014 , respectively. The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in other assets. The fair value of the COLI policies is considered a level 2 measurement and is derived from investments in a mix of money market, fixed income and equity funds managed by unrelated fund managers. At December 31, 2015 and 2014 , derivative assets were $56 and $54 , respectively, and derivative liabilities were $42 and $112 , respectively. The fair values of derivatives used to manage interest rate risk and commodity price risk are based on LIBOR rates and interest rate swap curves and NYMEX price quotations, respectively. The fair value of hedging instruments used to manage foreign currency risk is based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. Measurement of our derivative assets and liabilities is considered a level 2 measurement. Additional information on our classification and use of derivative instruments is contained in Note 13 . The following table includes the fair value of our financial instruments for which disclosure of fair value is required: Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value December 31, 2015 December 31, 2014 Assets Cash and cash equivalents (a) 1 $ 619 $ 619 $ 789 $ 789 Time deposits and other (b) 1 124 124 130 130 Liabilities and redeemable securities of subsidiaries Short-term debt (c) 2 1,071 1,071 777 777 Long-term debt (d) 2 6,704 7,300 6,179 6,963 Redeemable preferred securities of subsidiaries (e) 3 64 64 72 72 (a) Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at cost, which approximates fair value. (b) Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of greater than one year, included in other current assets or other assets in the Consolidated Balance Sheet, as appropriate. Other, included in other current assets, is composed of funds held in escrow. Time deposits and other are recorded at cost, which approximates fair value. (c) Short-term debt is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value. (d) Long-term debt includes the current portion of these debt instruments. Fair values were estimated based on quoted prices for financial instruments for which all significant inputs were observable, either directly or indirectly. (e) The redeemable preferred securities of subsidiaries are not traded in active markets. For certain instruments, fair values were calculated using a floating rate pricing model that compared the stated spread to the fair value spread to determine the price at which each of the financial instruments should trade. The model used the following inputs to calculate fair values: face value, current LIBOR rate, unobservable fair value credit spread, stated spread, maturity date and interest or dividend payment dates. Additionally, the fair value of the remaining redeemable securities was based on various inputs, including an independent third-party appraisal, adjusted for current market conditions. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisitions and Intangible Assets | Intangible Assets The changes in the carrying amount of goodwill by business segment are as follows: Personal Care Consumer Tissue K-C Professional Health Care Business Total Balance at December 31, 2013 $ 684 $ 641 $ 424 $ 1,432 $ 3,181 Currency and other (59 ) (47 ) (15 ) (3 ) (124 ) Spin-off of health care business — — — (1,429 ) (1,429 ) Balance at December 31, 2014 625 594 409 — 1,628 Currency and other (92 ) (70 ) (20 ) — (182 ) Balance at December 31, 2015 $ 533 $ 524 $ 389 $ — $ 1,446 Intangible assets subject to amortization consist of the following at December 31: 2015 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Trademarks $ 109 $ 77 $ 117 $ 79 Patents and developed technologies 47 11 49 9 Other 60 34 64 33 Total $ 216 $ 122 $ 230 $ 121 |
Debt and Redeemable Preferred S
Debt and Redeemable Preferred Securities of Subsidiaries | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Redeemable Preferred Securities of Subsidiaries | Debt and Redeemable Preferred Securities of Subsidiaries Long-term debt is composed of the following: Weighted- Average Interest Rate Maturities December 31 2015 2014 Notes and debentures 4.3% 2016 - 2045 $ 6,396 $ 5,656 Dealer remarketable securities — — — 200 Industrial development revenue bonds 0.1% 2018 - 2034 264 261 Bank loans and other financings in various currencies 8.1% 2016 - 2025 44 62 Total long-term debt 6,704 6,179 Less current portion 598 549 Long-term portion $ 6,106 $ 5,630 Scheduled maturities of long-term debt for the next five years are $598 in 2016 , $964 in 2017 , $933 in 2018 , $308 in 2019 and $755 in 2020 . In August 2015 , we issued $250 aggregate principal amount of 2.15% notes due August 2020 and $300 aggregate principal amount of 3.05% notes due August 2025 . Proceeds from the offering were used to repay $300 of notes due in August 2015 and to pay down a portion of our outstanding commercial paper balance. In February 2015 , we issued $250 aggregate principal amount of 1.85% notes due March 2020 and $250 aggregate principal amount of 2.65% notes due March 2025 . Proceeds from the offering were used for general corporate purposes, including pension contribution payments. In 2015, at our election, we redeemed $200 of dealer remarketable securities. On October 17, 2014 , we issued debt of $640 aggregate principal amount that was transferred to Halyard as part of the spin-off. On May 22, 2014 , we issued $300 aggregate principal amount of floating rate notes due May 19, 2016 and $300 aggregate principal amount of 1.9% notes due May 22, 2019 . Proceeds from the offering were used for general corporate purposes and repurchases of common stock. In 2013 , we issued $250 aggregate principal amount of floating rate notes due May 15, 2016 , $350 aggregate principal amount of 2.4% notes due June 1, 2023 , and $250 aggregate principal amount of 3.7% notes due June 1, 2043 . Proceeds from the offering were used to repay our $500 aggregate principal amount of 5.0% notes due August 15, 2013 , to fund investment in our business and for general corporate purposes. In 2014, we entered into a $2.0 billion revolving credit facility which expires in 2019 . This facility, currently unused, supports our commercial paper program, and would provide liquidity in the event our access to the commercial paper markets is unavailable for any reason. Redeemable Preferred Securities of Subsidiaries Our subsidiary in Central America has outstanding redeemable securities that are held by a noncontrolling interest and another noncontrolling interest holds certain redeemable preferred securities issued by one of our subsidiaries in North America. In December 2014, we redeemed $0.5 billion preferred securities in our Luxembourg-based financing subsidiary, and accordingly, the subsidiary became wholly-owned by Kimberly-Clark. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We have a stock-based Equity Participation Plan and an Outside Directors' Compensation Plan (the "Plans"), under which we can grant stock options, restricted shares and restricted share units to employees and outside directors. As of December 31, 2015 , the number of shares of common stock available for grants under the Plans aggregated 20 million shares. Stock options are granted at an exercise price equal to the fair market value of our common stock on the date of grant, and they have a term of 10 years. Stock options are subject to graded vesting whereby options vest 30 percent at the end of each of the first two 12-month periods following the grant and 40 percent at the end of the third 12-month period. Restricted shares, time-vested restricted share units and performance-based restricted share units granted to employees are valued at the closing market price of our common stock on the grant date and vest generally at the end of three years. The number of performance-based share units that ultimately vest ranges from zero to 200 percent of the number granted, based on performance tied to return on invested capital ("ROIC") and net sales during the three-year performance period. ROIC and net sales targets are set at the beginning of the performance period. Restricted share units granted to outside directors are valued at the closing market price of our common stock on the grant date and vest when they are granted. The restricted period begins on the date of grant and expires on the date the outside director retires from or otherwise terminates service on our Board. At the time stock options are exercised or restricted shares and restricted share units become payable, common stock is issued from our accumulated treasury shares. Dividend equivalents are credited on restricted share units on the same date and at the same rate as dividends are paid on Kimberly-Clark's common stock. These dividend equivalents, net of estimated forfeitures, are charged to retained earnings. Stock-based compensation costs of $75 , $52 and $92 and related deferred income tax benefits of $29 , $19 and $35 were recognized for 2015 , 2014 and 2013 , respectively. The fair value of stock option awards was determined using a Black-Scholes-Merton option-pricing model utilizing a range of assumptions related to dividend yield, volatility, risk-free interest rate, and employee exercise behavior. Dividend yield is based on historical experience and expected future dividend actions. Expected volatility is based on a blend of historical volatility and implied volatility from traded options on Kimberly-Clark's common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. We estimate forfeitures based on historical data. The weighted-average fair value of options granted was estimated at $7.39 , $7.89 and $7.15 , in 2015 , 2014 and 2013 , respectively, per option on the date of grant based on the following assumptions: Year Ended December 31 2015 2014 2013 Dividend yield 3.50 % 3.50 % 3.70 % Volatility 13.42 % 13.41 % 15.40 % Risk-free interest rate 1.51 % 1.73 % 0.87 % Expected life - years 4.8 5.0 5.1 Total remaining unrecognized compensation costs and amortization period are as follows: December 31, 2015 Weighted-Average Service Years Nonvested stock options $ 9 1.3 Restricted shares and time-vested restricted share units 5 1.9 Nonvested performance-based restricted share units 52 1.9 Excess tax benefits, resulting from tax deductions in excess of the compensation cost recognized, aggregating $37 , $37 and $50 were classified as other cash inflows under Financing Activities in the Consolidated Cash Flow Statement for the years ended December 31, 2015 , 2014 and 2013 , respectively. A summary of stock-based compensation is presented below: Stock Options Shares (in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2015 6,961 $ 82.32 Granted 1,779 110.73 Exercised (1,941 ) 71.97 Forfeited or expired (209 ) 103.43 Outstanding at December 31, 2015 6,590 92.35 6.76 $ 230 Exercisable at December 31, 2015 3,339 77.34 4.86 $ 167 The total intrinsic value of options exercised during the years ended December 31, 2015 , 2014 and 2013 was $83 , $79 and $138 , respectively. Time-Vested Restricted Share Units Performance-Based Restricted Share Units Other Stock-Based Awards Shares (in thousands) Weighted- Average Grant-Date Fair Value Shares (in thousands) Weighted- Average Grant-Date Fair Value Nonvested at January 1, 2015 244 $ 86.34 1,809 $ 96.35 Granted 77 107.29 770 106.82 Vested (212 ) 83.01 (683 ) 78.17 Forfeited (7 ) 87.59 (135 ) 104.30 Nonvested at December 31, 2015 102 108.91 1,761 107.51 The total fair value of restricted share units that were distributed to participants during 2015 , 2014 and 2013 was $99 , $102 and $45 , respectively. |
Employee Postretirement Benefit
Employee Postretirement Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Postretirement Benefits | Employee Postretirement Benefits Substantially all regular employees in the U.S. and the United Kingdom are covered by defined benefit pension plans (the "Principal Plans") and/or defined contribution retirement plans. The information presented for the Principal Plans for 2014 and 2013 also included Canada and Puerto Rico. Certain other subsidiaries have defined benefit pension plans or, in certain countries, termination pay plans covering substantially all regular employees. The funding policy for our qualified defined benefit pension plans is to contribute assets at least equal in amount to regulatory minimum requirements. Nonqualified U.S. plans providing pension benefits in excess of limitations imposed by the U.S. income tax code are not funded. Substantially all U.S. retirees and employees have access to our unfunded healthcare and life insurance benefit plans. The annual increase in the consolidated weighted-average healthcare cost trend rate is expected to be 5.8 percent in 2016 and to decline to 4.6 percent in 2028 and thereafter. Assumed healthcare cost trend rates affect the amounts reported for postretirement healthcare benefit plans. A one-percentage-point change in assumed healthcare trend rates would not have a significant effect on our financial results. Effective January 2015, the U.S. pension plan was amended to include a lump-sum pension benefit payout option for certain plan participants. In addition, in April 2015, the U.S. pension plan completed the purchase of group annuity contracts that transferred to two insurance companies the pension benefit obligations totaling $2.5 billion for approximately 21,000 Kimberly-Clark retirees in the United States. As a result of these changes, we recognized pension settlement-related charges of $0.8 billion after tax ( $1.4 billion pre-tax in other (income) and expense, net) during 2015 , mostly in the second quarter. In 2015 , we made cash contributions of $410 related to these changes to the U.S. plan. Summarized financial information about postretirement plans, excluding defined contribution retirement plans, is presented below: Pension Benefits Other Benefits Year Ended December 31 2015 2014 2015 2014 Change in Benefit Obligation Benefit obligation at beginning of year $ 6,860 $ 6,164 $ 788 $ 761 Service cost 38 46 12 13 Interest cost 187 279 32 35 Actuarial loss (gain) (150 ) 986 (53 ) 39 Currency and other (139 ) (207 ) (8 ) (4 ) Benefit payments from plans (235 ) (356 ) — — Direct benefit payments (12 ) (10 ) (54 ) (56 ) Settlements (2,590 ) (42 ) — — Benefit obligation at end of year 3,959 6,860 717 788 Change in Plan Assets Fair value of plan assets at beginning of year 5,914 5,567 — — Actual return on plan assets 54 694 — — Employer contributions 484 185 — — Currency and other (119 ) (142 ) — — Benefit payments (235 ) (356 ) — — Settlements (2,590 ) (34 ) — — Fair value of plan assets at end of year 3,508 5,914 — — Funded Status $ (451 ) $ (946 ) $ (717 ) $ (788 ) Amounts Recognized in the Balance Sheet Noncurrent asset - prepaid benefit cost $ 16 $ 6 $ — $ — Current liability - accrued benefit cost (11 ) (13 ) (50 ) (51 ) Noncurrent liability - accrued benefit cost (456 ) (939 ) (667 ) (737 ) Net amount recognized $ (451 ) $ (946 ) $ (717 ) $ (788 ) Information for the Principal Plans and All Other Pension Plans Principal Plans All Other Pension Plans Total Year Ended December 31 2015 2014 2015 2014 2015 2014 Projected benefit obligation (“PBO”) $ 3,295 $ 6,312 $ 664 $ 548 $ 3,959 $ 6,860 Accumulated benefit obligation (“ABO”) 3,253 6,221 594 475 3,847 6,696 Fair value of plan assets 3,019 5,559 489 355 3,508 5,914 Approximately one-half of the PBO and fair value of plan assets for the Principal Plans relate to the U.S. qualified and nonqualified pension plans. Information for Pension Plans with an ABO in Excess of Plan Assets December 31 2015 2014 PBO $ 2,115 $ 4,983 ABO 2,096 4,908 Fair value of plan assets 1,696 4,111 Components of Net Periodic Benefit Cost Pension Benefits Other Benefits Year Ended December 31 2015 2014 2013 2015 2014 2013 Service cost $ 38 $ 46 $ 53 $ 12 $ 13 $ 17 Interest cost 187 279 257 32 35 32 Expected return on plan assets (a) (215 ) (332 ) (331 ) — — — Recognized net actuarial loss 75 100 120 — — 3 Curtailments — — (32 ) — — — Settlements 1,357 20 1 — — — Other (10 ) (3 ) 1 (1 ) (1 ) (2 ) Net periodic benefit cost $ 1,432 $ 110 $ 69 $ 43 $ 47 $ 50 (a) The expected return on plan assets is determined by multiplying the fair value of plan assets at the remeasurement date, typically the prior year-end adjusted for estimated current year cash benefit payments and contributions, by the expected long-term rate of return. Weighted-Average Assumptions Used to Determine Net Cost for Years Ended December 31 Pension Benefits Other Benefits Projected 2016 2015 2014 2013 2015 2014 2013 Discount rate 3.91 % 3.86 % 4.66 % 4.04 % 4.28 % 4.97 % 3.97 % Expected long-term return on plan assets 4.84 % 5.21 % 5.98 % 6.26 % — — — Rate of compensation increase 2.32 % 2.63 % 2.67 % 2.73 % — — — Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 Pension Benefits Other Benefits 2015 2014 2015 2014 Discount rate 3.91 % 3.83 % 4.59 % 4.28 % Rate of compensation increase 2.32 % 2.63 % — — Investment Strategies for the Principal Plans Strategic asset allocation decisions are made considering several risk factors, including plan participants' retirement benefit security, the estimated payments of the associated liabilities, the plan funded status, and Kimberly-Clark's financial condition. The resulting strategic asset allocation is a diversified blend of equity and fixed income investments. Equity investments are typically diversified across geographies and market capitalization. Fixed income investments are diversified across multiple sectors including government issues and corporate debt instruments with a portfolio duration that is consistent with the estimated payment of the associated liability. Actual asset allocation is regularly reviewed and periodically rebalanced to the strategic allocation when considered appropriate. Our 2016 target plan asset allocation for the Principal Plans is 70 percent fixed income securities and 30 percent equity securities. The expected long-term rate of return is evaluated on an annual basis. In setting this assumption, we consider a number of factors including projected future returns by asset class relative to the current asset allocation. The weighted-average expected long-term rate of return on pension fund assets used to calculate pension expense for the Principal Plans was 5.35 percent in 2015 compared with 6.16 percent in 2014 and will be 5.10 percent in 2016 . Set forth below are the pension plan assets of the Principal Plans measured at fair value, by level in the fair-value hierarchy: Fair Value Measurements at December 31, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and Cash Equivalents Held directly $ 14 $ 12 $ 2 $ — Held through mutual and pooled funds 34 — 34 — Fixed Income Held directly U.S. government and municipals 157 141 16 — U.S. corporate debt 21 — 21 — Held through mutual and pooled funds U.S. government and municipals 149 — 149 — U.S. corporate debt 623 — 623 — International bonds 1,236 — 1,236 — Equity Held directly U.S. equity 58 58 — — International equity 30 30 — — Held through mutual and pooled funds Non-U.S. equity 67 — 67 — Global equity 630 — 630 — Total Plan Assets $ 3,019 $ 241 $ 2,778 $ — For the U.S. pension plan, Treasury futures contracts are used when appropriate to manage duration targets. As of December 31, 2015 , the U.S. plan had Treasury futures contracts in place with a total notional value of approximately $15 and an insignificant fair value. Fair Value Measurements at December 31, 2014 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and Cash Equivalents Held directly $ 28 $ 28 $ — $ — Held through mutual and pooled funds 175 9 166 — Fixed Income Held directly U.S. government and municipals 252 71 181 — U.S. corporate debt 2,167 — 2,167 — U.S. securitized fixed income 6 — 6 — Held through mutual and pooled funds U.S. corporate debt 149 — 149 — International bonds 1,438 — 1,438 — Multi-sector 1 1 — — Equity Held directly U.S. equity 18 18 — — Held through mutual and pooled funds U.S. equity 4 4 — — Non-U.S. equity 106 1 105 — Global equity 1,186 — 1,186 — Other 29 29 — — Total Plan Assets $ 5,559 $ 161 $ 5,398 $ — As of December 31, 2014 , the U.S. pension plan had equity options in place with a total notional value of approximately $950 , and the fair value of the aggregate options was an asset position of $29 . As of December 31, 2014 , the U.S. plan had Treasury futures contracts in place with a total notional value of approximately $510 and an insignificant fair value. During 2015 and 2014 , the plan assets did not include a significant amount of Kimberly-Clark common stock. Inputs and valuation techniques used to measure the fair value of plan assets vary according to the type of security being valued. Substantially all of the equity securities held directly by the plans are actively traded and fair values are determined based on quoted market prices. Fair values of U.S. Treasury securities are determined based on trading activity in the marketplace. Fair values of U.S. corporate debt, U.S. securitized fixed income and international bonds are typically determined by reference to the values of similar securities traded in the marketplace and current interest rate levels. Multiple pricing services are typically employed to assist in determining these valuations. Fair values of equity securities and fixed income securities held through units of pooled funds are based on net asset value of the units of the pooled fund determined by the fund manager. Pooled funds are similar in nature to retail mutual funds, but are typically more efficient for institutional investors. The fair value of pooled funds is determined by the value of the underlying assets held by the fund and the units outstanding. The value of the pooled fund is not directly observable, but is based on observable inputs. Equity securities held directly by the pension trusts and those held through units in pooled funds are monitored as to issuer and industry. Except for U.S. Treasuries, concentrations of fixed income securities are similarly monitored for concentrations by issuer and industry. As of December 31, 2015 , there were no significant concentrations of equity or debt securities in any single issuer or industry. No significant level 3 transfers (in or out) were made in 2015 or 2014 . We expect to contribute up to $100 to our defined benefit pension plans in 2016 . Over the next ten years, we expect that the following gross benefit payments will occur: Pension Benefits Other Benefits 2016 $ 217 $ 51 2017 234 53 2018 238 54 2019 242 56 2020 251 58 2021-2025 1,284 291 Defined Contribution Pension Plans Our 401(k) profit sharing plan and supplemental plan provide for a matching contribution of a U.S. employee's contributions and accruals, subject to predetermined limits, as well as a discretionary profit sharing contribution, in which contributions will be based on our profit performance. We also have defined contribution pension plans for certain employees outside the U.S. Costs charged to expense for our defined contribution pension plans were $107 , $121 and $117 in 2015 , 2014 and 2013 , respectively. Approximately one-third of these costs were for plans outside the U.S. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity During the first quarter of 2015 , we acquired the remaining 49.9 percent interest in our subsidiary in Israel, Hogla-Kimberly, Ltd., for $151 . As our subsidiary in Turkey was wholly-owned by our subsidiary in Israel, through this acquisition we also effectively acquired the remaining 49.9 percent interest in our subsidiary in Turkey, Kimberly-Clark Tuketim Mallari Sanayi ve Ticaret A.s. The purchase of additional ownership in an already controlled subsidiary is treated as an equity transaction with no gain or loss recognized in consolidated net income or comprehensive income. The effect of the change in ownership interest is as follows: 2015 Net Income Attributable to Kimberly-Clark Corporation $ 1,013 Decrease in Kimberly-Clark Corporation's additional paid-in capital for acquisition (94 ) Change from net income attributable to Kimberly-Clark Corporation and transfers to noncontrolling interests $ 919 Accumulated Other Comprehensive Income/Loss The changes in the components of accumulated other comprehensive income ("AOCI") attributable to Kimberly-Clark, net of tax, are as follows: Unrealized Translation Defined Benefit Pension Plans Other Postretirement Benefit Plans Cash Flow Hedges and Other Balance as of December 31, 2013 $ (525 ) $ (1,668 ) $ (15 ) $ (34 ) Other comprehensive income (loss) before reclassifications (819 ) (313 ) (23 ) 29 (Income) loss reclassified from AOCI — 57 (a) 1 (a) (11 ) Net current period other comprehensive income (loss) (819 ) (256 ) (22 ) 18 Spin-off of health care business 9 — — — Balance as of December 31, 2014 (1,335 ) (1,924 ) (37 ) (16 ) Other comprehensive income (loss) before reclassifications (942 ) 39 35 53 (Income) loss reclassified from AOCI 37 (b) 872 (a) (1 ) (a) (48 ) Net current period other comprehensive income (loss) (905 ) 911 34 5 Shares purchased from noncontrolling interests and other (12 ) — — 1 Balance as of December 31, 2015 $ (2,252 ) $ (1,013 ) $ (3 ) $ (10 ) (a) Included in computation of net periodic pension and postretirement benefits costs (see Note 9 ). (b) Included in other (income) and expense, net as part of the charge related to the deconsolidation of our Venezuelan operations at December 31, 2015 (see Note 1 ). Included in the defined benefit pension plans and other postretirement benefit plans balances as of December 31, 2015 is $1,061 and $46 of unrecognized net actuarial loss and unrecognized net prior service credit, respectively, of which $52 and $10 pre-tax, respectively, are expected to be recognized as a component of net periodic benefit cost in 2016 . The changes in the components of AOCI attributable to Kimberly-Clark, including the tax effect, are as follows: Year Ended December 31 2015 2014 2013 Unrealized translation $ (882 ) $ (826 ) $ (495 ) Tax effect (23 ) 7 (4 ) (905 ) (819 ) (499 ) Defined benefit pension plans Unrecognized net actuarial loss and transition amount Funded status recognition (4 ) (624 ) 356 Amortization included in net periodic benefit cost 75 100 120 2015 U.S. plan settlements (recorded in Other (income) and expense, net) 1,355 — — Currency and other 42 69 (8 ) 1,468 (455 ) 468 Unrecognized prior service cost/credit Funded status recognition 4 42 — Amortization included in net periodic benefit cost (12 ) (7 ) (31 ) Currency and other (2 ) (3 ) (1 ) (10 ) 32 (32 ) Tax effect (547 ) 167 (176 ) 911 (256 ) 260 Other postretirement benefit plans Unrecognized net actuarial loss and transition amount 59 (36 ) 65 Unrecognized prior service cost/credit (4 ) — (3 ) Tax effect (21 ) 14 (24 ) 34 (22 ) 38 Cash flow hedges and other Recognition of effective portion of hedges 66 18 37 Amortization included in net income (53 ) (5 ) (10 ) Currency and other (7 ) 2 4 Tax effect (1 ) 3 (13 ) 5 18 18 Shares purchased from noncontrolling interests and other (11 ) — — Spin-off of health care business — 9 — Change in AOCI $ 34 $ (1,070 ) $ (183 ) Amounts are reclassified from AOCI into cost of products sold, marketing, research and general expenses, interest expense or other (income) and expense, net, as applicable, in the Consolidated Income Statement. Net unrealized currency gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries, except those in highly inflationary economies, are recorded in AOCI. For these operations, changes in exchange rates generally do not affect cash flows; therefore, unrealized translation adjustments are recorded in AOCI rather than net income. Upon sale or substantially complete liquidation of any of these subsidiaries, the applicable unrealized translation adjustment would be removed from AOCI and reported as part of the gain or loss on the sale or liquidation. The change in unrealized translation in 2015 is primarily due to the strengthening of the U.S. dollar versus the Brazilian real, Australian dollar, euro, Canadian dollar and Colombian peso as well as most other foreign currencies. Also included in unrealized translation amounts are the effects of foreign exchange rate changes on intercompany balances of a long-term investment nature and transactions designated as hedges of net foreign investments. |
Leases and Commitments
Leases and Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Leases and Commitments | |
Leases and Commitments | Leases and Commitments We have entered into operating leases for certain warehouse facilities, automobiles and equipment. The future minimum obligations under operating leases having a noncancelable term in excess of one year are as follows: Year Ending December 31 2016 $ 142 2017 115 2018 86 2019 67 2020 53 Thereafter 82 Future minimum obligations $ 545 Consolidated rental expense under operating leases was $279 , $303 and $316 in 2015 , 2014 and 2013 , respectively. We have entered into long-term contracts for the purchase of superabsorbent materials, pulp and certain utilities. Commitments under these contracts based on current prices are $698 in 2016 , $170 in 2017 , $139 in 2018 , $144 in 2019 , $156 in 2020 , and beyond the year 2020 are not significant. Although we are primarily liable for payments on the above-mentioned leases and purchase commitments, our exposure to losses, if any, under these arrangements is not material. |
Legal Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2015 | |
Legal Matters | |
Legal Matters | Legal Matters We are subject to various legal proceedings, claims and governmental inquiries, inspections, audits or investigations pertaining to issues such as contract disputes, product liability, tax matters, patents and trademarks, advertising, pricing, business practices, governmental regulations, employment and other matters. Although the results of litigation and claims cannot be predicted with certainty, we believe that the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, individually or in the aggregate, on our business, financial condition, results of operations or liquidity. We are subject to federal, state and local environmental protection laws and regulations with respect to our business operations and are operating in compliance with, or taking action aimed at ensuring compliance with, these laws and regulations. We have been named a potentially responsible party under the provisions of the U.S. federal Comprehensive Environmental Response, Compensation and Liability Act, or analogous state statutes, at a number of sites where hazardous substances are present. None of our compliance obligations with environmental protection laws and regulations, individually or in the aggregate, is expected to have a material adverse effect on our business, liquidity, financial condition or results of operations. |
Objectives and Strategies for U
Objectives and Strategies for Using Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Objectives and Strategies for Using Derivatives | Objectives and Strategies for Using Derivatives As a multinational enterprise, we are exposed to financial risks, such as changes in foreign currency exchange rates, interest rates, and commodity prices. We employ a number of practices to manage these risks, including operating and financing activities and, where appropriate, the use of derivative instruments. We enter into derivative instruments to hedge a portion of forecasted cash flows denominated in foreign currencies for non-U.S. operations' purchases of raw materials, which are priced in U.S. dollars, and imports of intercompany finished goods and work-in-process priced predominantly in U.S. dollars and euros. The derivative instruments used to manage these exposures are designated and qualify as cash flow hedges. The foreign currency exposure on certain non-functional currency denominated monetary assets and liabilities, primarily intercompany loans and accounts payable, is hedged with primarily undesignated derivative instruments. Interest rate risk is managed using a portfolio of variable and fixed-rate debt composed of short and long-term instruments. Interest rate swap contracts may be used to facilitate the maintenance of the desired ratio of variable and fixed-rate debt and are designated and qualify as fair value hedges. From time to time, we also hedge the anticipated issuance of fixed-rate debt, using forward-starting swaps, and these contracts are designated as cash flow hedges. We use derivative instruments, such as forward swap contracts, to hedge a limited portion of our exposure to market risk arising from changes in prices of certain commodities. These derivatives are designated as cash flow hedges of specific quantities of the underlying commodity expected to be purchased in future months. Translation adjustments result from translating foreign entities' financial statements into U.S. dollars from their functional currencies. The risk to any particular entity's net assets is reduced to the extent that the entity is financed with local currency borrowing. Translation exposure, which results from changes in translation rates between functional currencies and the U.S. dollar, generally is not hedged. Set forth below is a summary of the designated and undesignated fair values of our derivative instruments: Assets Liabilities 2015 2014 2015 2014 Foreign currency exchange contracts $ 56 $ 54 $ 27 $ 102 Commodity price contracts — — 15 10 Total $ 56 $ 54 $ 42 $ 112 The derivative assets are included in the Consolidated Balance Sheet in other current assets and other assets, as appropriate. The derivative liabilities are included in the Consolidated Balance Sheet in accrued expenses and other liabilities, as appropriate. Derivative instruments that are designated and qualify as fair value hedges are predominantly used to manage interest rate risk. The fair values of these derivative instruments are recorded as an asset or liability, as appropriate, with the offset recorded in current earnings. The offset to the change in fair values of the related hedged items also is recorded in current earnings. Any realized gain or loss on the derivatives that hedge interest rate risk is amortized to interest expense over the life of the related debt. At December 31, 2015 , the aggregate notional values of outstanding interest rate contracts designated as fair value hedges were $375 . Fair value hedges resulted in no significant ineffectiveness in each of the three years ended December 31, 2015 . For each of the three years ended December 31, 2015 , gains or losses recognized in interest expense and the related assets and liabilities for interest rates swaps were not significant. For each of the three years ended December 31, 2015 , no gain or loss was recognized in earnings as a result of a hedged firm commitment no longer qualifying as a fair value hedge. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is initially recorded in AOCI, net of related income taxes, and recognized in earnings in the same period that the hedged exposure affects earnings. As of December 31, 2015 , outstanding commodity forward contracts were in place to hedge a limited portion of our estimated requirements of the related underlying commodities in 2016 and future periods. As of December 31, 2015 , the aggregate notional values of outstanding foreign exchange derivative contracts designated as cash flow hedges was $815 and there were no outstanding interest rate derivative contracts designated as cash flow hedges. Cash flow hedges resulted in no significant ineffectiveness in each of the three years ended December 31, 2015 . For each of the three years ended December 31, 2015 , no gains or losses were reclassified into earnings as a result of the discontinuance of cash flow hedges due to the original forecast transaction no longer being probable of occurring. At December 31, 2015 , amounts to be reclassified from AOCI during the next twelve months are not expected to be material. The maximum maturity of cash flow hedges in place at December 31, 2015 is December 2018 . Gains or losses on undesignated foreign exchange hedging instruments are immediately recognized in other (income) and expense, net. Losses of $188 , $192 and $74 were recorded in the years ending December 31, 2015 , 2014 and 2013 , respectively. The effect on earnings from the use of these non-designated derivatives is substantially neutralized by the transactional gains and losses recorded on the underlying assets and liabilities. At December 31, 2015 , the notional amount of these undesignated derivative instruments was $2.4 billion . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes An analysis of the provision for income taxes follows: Year Ended December 31 2015 2014 2013 Current income taxes United States $ 223 $ 350 $ 292 State 56 48 99 Other countries 394 387 286 Total 673 785 677 Deferred income taxes United States (180 ) 67 85 State (74 ) (16 ) 14 Other countries (1 ) 20 52 Total (255 ) 71 151 Total provision for income taxes $ 418 $ 856 $ 828 Income from continuing operations before income taxes is earned in the following tax jurisdictions: Year Ended December 31 2015 2014 2013 United States $ 451 $ 1,571 $ 1,557 Other countries 884 684 1,084 Total income before income taxes $ 1,335 $ 2,255 $ 2,641 Deferred income tax assets and liabilities are composed of the following: December 31 2015 2014 Deferred tax assets Pension and other postretirement benefits $ 682 $ 883 Tax credits and loss carryforwards 443 538 Other 599 667 1,724 2,088 Valuation allowance (274 ) (215 ) Total deferred tax assets 1,450 1,873 Deferred tax liabilities Pension and other postretirement benefits 254 260 Property, plant and equipment, net 1,118 1,162 Investments in subsidiaries 186 223 Other 281 339 Total deferred tax liabilities 1,839 1,984 Net deferred tax assets (liabilities) $ (389 ) $ (111 ) Valuation allowances at the end of 2015 primarily relate to tax credits and income tax loss carryforwards of $0.8 billion . If these items are not utilized against taxable income, $357 of the loss carryforwards will expire from 2016 through 2035 . The remaining $458 have no expiration date. Realization of income tax loss carryforwards is dependent on generating sufficient taxable income prior to expiration of these carryforwards. Although realization is not assured, we believe it is more likely than not that all of the deferred tax assets, net of applicable valuation allowances, will be realized. The amount of the deferred tax assets considered realizable could be reduced or increased due to changes in the tax environment or if estimates of future taxable income change during the carryforward period. Presented below is a reconciliation of the income tax provision computed at the U.S. federal statutory tax rate to the actual effective tax rate: Year Ended December 31 2015 2014 2013 U.S. statutory rate applied to income before income taxes 35.0 % 35.0 % 35.0 % Rate of state income taxes, net of federal tax benefit (0.9 ) 0.7 2.7 Statutory rates other than U.S. statutory rate (6.9 ) (3.0 ) (3.0 ) Venezuela deconsolidation, balance sheet remeasurement and inflationary impacts 4.5 4.9 (0.8 ) Uncertain tax positions adjustment (a) 3.7 — — Routine tax incentives (b) (7.4 ) (3.6 ) (3.9 ) Net tax cost on foreign income (b) 5.1 3.6 1.6 Other - net (c) (1.8 ) 0.4 (0.2 ) Effective income tax rate 31.3 % 38.0 % 31.4 % (a) In the fourth quarter of 2015, we updated our assessment of uncertain tax positions for certain international operations and as a result we recorded an immaterial income tax charge of $49 related to prior years. (b) In 2015, we aggregated certain items to provide additional information on impacts to our effective tax rate. Prior years have been recast to conform with the 2015 presentation. (c) Other - net is composed of numerous items, none of which is greater than 1.75 percent of income before income taxes. At December 31, 2015 , U.S. income taxes and foreign withholding taxes have not been provided on $8.8 billion of unremitted earnings of subsidiaries operating outside the U.S. These earnings, which are considered to be invested indefinitely, would become subject to income tax if they were remitted as dividends, were lent to one of our U.S. entities, or if we were to sell our stock in the subsidiaries. Determination of the amount of unrecognized deferred U.S. income tax liability on these unremitted earnings is not practicable because of the complexities associated with this hypothetical calculation. We do not expect restrictions or taxes on repatriation of cash held outside of the U.S. to have a material effect on our overall liquidity, financial condition or results of operations in the foreseeable future. Presented below is a reconciliation of the beginning and ending amounts of unrecognized income tax benefits: 2015 2014 2013 Balance at January 1 $ 416 $ 473 $ 435 Gross increases for tax positions of prior years 80 36 73 Gross decreases for tax positions of prior years (61 ) (91 ) (31 ) Gross increases for tax positions of the current year 59 87 37 Settlements (63 ) (77 ) (35 ) Other (25 ) (12 ) (6 ) Balance at December 31 $ 406 $ 416 $ 473 Of the amounts recorded as unrecognized tax benefits at December 31, 2015 , $307 would reduce our effective tax rate if recognized. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. During each of the three years ended December 31, 2015 , the net cost in interest and penalties was not significant. Total accrued penalties and net accrued interest was $40 and $28 at December 31, 2015 and 2014 , respectively. It is reasonably possible that a number of uncertainties could be resolved within the next 12 months. The aggregate resolution of the uncertainties could be up to $170 , while none of the uncertainties is individually significant. Resolution of these matters is not expected to have a material effect on our financial condition, results of operations or liquidity. As of December 31, 2015 , the following tax years remain subject to examination for the major jurisdictions where we conduct business: Jurisdiction Years United States 2012 to 2015 United Kingdom 2012 to 2015 Brazil 2010 to 2015 Korea 2014 to 2015 China 2006 to 2015 Our U.S. federal income tax returns have been audited through 2011 . We have various federal income tax return positions in administrative appeals for 2004, 2005, 2007, 2010 and 2011 . State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return. The state effect of any changes to filed federal positions remains subject to examination by various states for a period of up to two years after formal notification to the states. We have various state income tax return positions in the process of examination, administrative appeals or litigation. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share ("EPS") There are no adjustments required to be made to net income for purposes of computing basic and diluted EPS. The average number of common shares outstanding is reconciled to those used in the basic and diluted EPS computations as follows: (Millions of shares) 2015 2014 2013 Basic 363.8 374.5 384.0 Dilutive effect of stock options and restricted share unit awards 2.5 2.9 3.3 Diluted 366.3 377.4 387.3 Options outstanding that were not included in the computation of diluted EPS because their exercise price was greater than the average market price of the common shares were insignificant. The number of common shares outstanding as of December 31, 2015 , 2014 and 2013 was 360.9 million , 365.3 million and 380.8 million , respectively. |
Description of Business Segment
Description of Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We are organized into operating segments based on product groupings. These operating segments have been aggregated into three reportable global business segments: Personal Care, Consumer Tissue and KCP. The reportable segments were determined in accordance with how our executive managers develop and execute global strategies to drive growth and profitability. These strategies include global plans for branding and product positioning, technology, research and development programs, cost reductions including supply chain management, and capacity and capital investments for each of these businesses. Segment management is evaluated on several factors, including operating profit. Segment operating profit excludes other (income) and expense, net and income and expense not associated with the business segments, including the charges related to the 2014 Organization Restructuring and the European strategic changes described in Notes 2 and 4 , respectively. The principal sources of revenue in each global business segment are described below: • Personal Care brands offer our consumers a trusted partner in caring for themselves and their families by delivering confidence, protection and discretion through a wide variety of innovative solutions and products such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products. Products in this segment are sold under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise and other brand names. • Consumer Tissue offers a wide variety of innovative solutions and trusted brands that touch and improve people's lives every day. Products in this segment include facial and bathroom tissue, paper towels, napkins and related products, and are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve and other brand names. • K-C Professional partners with businesses to create Exceptional Workplaces, helping to make them healthier, safer and more productive through a range of solutions and supporting products such as wipers, tissue, towels, apparel, soaps and sanitizers. Our brands, including Kleenex, Scott, WypAll, Kimtech and Jackson Safety, are well-known for quality and trusted to help people around the world work better. Net sales to Wal-Mart Stores, Inc. were approximately 14 percent in 2015 , and approximately 13 percent in 2014 and 2013 , of our total net sales. Information concerning consolidated operations by business segment is presented in the following tables: Consolidated Operations by Business Segment Year Ended December 31 2015 2014 2013 NET SALES (a) Personal Care $ 9,204 $ 9,635 $ 9,536 Consumer Tissue 6,121 6,645 6,637 K-C Professional 3,219 3,388 3,323 Corporate & Other 47 56 65 TOTAL NET SALES $ 18,591 $ 19,724 $ 19,561 OPERATING PROFIT (b) Personal Care $ 1,885 $ 1,803 $ 1,698 Consumer Tissue 1,073 1,062 988 K-C Professional 590 604 605 Corporate & Other (c) (367 ) (495 ) (381 ) Other (income) and expense, net (d) 1,568 453 7 TOTAL OPERATING PROFIT $ 1,613 $ 2,521 $ 2,903 (a) Net sales in the United States to third parties totaled $8,819 , $8,573 and $8,557 in 2015 , 2014 and 2013 , respectively. (b) Segment operating profit excludes other (income) and expense, net and income and expenses not associated with the business segments. (c) Corporate & Other includes charges related to the 2014 Organization Restructuring of $63 and $133 , and $5 and $41 related to the remeasurement of the Venezuelan balance sheet, in 2015 and 2014 , respectively. Corporate & Other also includes $23 for restructuring in Turkey in 2015 , and $33 and $76 related to European strategic changes in 2014 and 2013, respectively (d) Other (income) and expense, net for 2015 and 2014 include charges of $40 and $421 , respectively, related to the remeasurement of the Venezuelan balance sheet. In addition, 2015 includes charges of $108 for the deconsolidation of our Venezuelan operations and $1,358 for charges related to pension settlements and 2014 includes a charge of $35 related to a regulatory dispute in the Middle East. The results for 2013 include a balance sheet remeasurement charge of $36 due to a devaluation of the Venezuelan bolivar and a charge of $5 for European strategic changes. Personal Care Consumer Tissue K-C Professional Corporate & Other Ongoing Operations Health Care Business (Spun-off) Consolidated Total Depreciation and Amortization 2015 $ 340 $ 282 $ 121 $ 3 $ 746 $ — $ 746 2014 359 299 132 3 793 69 862 2013 332 318 138 4 792 71 863 Assets 2015 6,330 5,050 2,264 1,198 14,842 — 14,842 2014 6,373 5,229 2,339 1,585 15,526 — 15,526 2013 6,623 5,483 2,431 2,012 16,549 2,370 18,919 Capital Spending 2015 590 344 116 6 1,056 — 1,056 2014 501 314 143 6 964 75 1,039 2013 461 328 118 2 909 44 953 Sales of Principal Products (Billions of dollars) 2015 2014 2013 Consumer tissue products $ 6.1 $ 6.6 $ 6.6 Baby and child care products 6.6 7.0 7.0 Away-from-home professional products 3.2 3.4 3.3 All other 2.7 2.7 2.7 Consolidated $ 18.6 $ 19.7 $ 19.6 |
Supplemental Data
Supplemental Data | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Data | |
Supplemental Data | Supplemental Data Supplemental Income Statement Data Year Ended December 31 2015 2014 2013 Advertising expense $ 710 $ 767 $ 769 Research expense 324 368 333 Equity Companies' Data Net Sales Gross Profit Operating Profit Net Income Corporation's Share of Net Income 2015 $ 2,255 $ 773 $ 497 $ 308 $ 149 2014 2,452 781 485 304 146 2013 2,638 950 642 426 205 Current Assets Non- Current Assets Current Liabilities Non- Current Liabilities Stockholders' Equity 2015 $ 1,103 $ 993 $ 508 $ 1,068 $ 520 2014 1,016 1,040 690 963 403 2013 1,197 1,124 847 845 629 Equity companies are principally engaged in operations in the personal care and consumer tissue businesses. At December 31, 2015 , our ownership interest in Kimberly-Clark de Mexico, S.A.B. de C.V. and subsidiaries was 47.9% . Kimberly-Clark de Mexico, S.A.B. de C.V. is partially owned by the public, and its stock is publicly traded in Mexico. At December 31, 2015 , our investment in this equity company was $179 , and the estimated fair value of the investment was $2.9 billion based on the market price of publicly traded shares. Our other equity ownership interests are not significant to our consolidated balance sheet or financial results. At December 31, 2015 , unremitted net income of equity companies included in consolidated retained earnings was $1 billion . Supplemental Balance Sheet Data December 31 Summary of Accounts Receivable, Net 2015 2014 From customers $ 2,017 $ 2,079 Other 329 210 Less allowance for doubtful accounts and sales discounts (65 ) (66 ) Total $ 2,281 $ 2,223 December 31 2015 2014 Summary of Inventories by Major Class LIFO Non- LIFO Total LIFO Non- LIFO Total Raw materials $ 100 $ 297 $ 397 $ 104 $ 322 $ 426 Work in process 110 93 203 120 95 215 Finished goods 525 689 1,214 511 672 1,183 Supplies and other — 278 278 — 288 288 735 1,357 2,092 735 1,377 2,112 Excess of FIFO or weighted-average cost over (183 ) — (183 ) (220 ) — (220 ) Total $ 552 $ 1,357 $ 1,909 $ 515 $ 1,377 $ 1,892 Inventories are valued at the lower of cost and net realizable value, determined on the FIFO or weighted-average cost methods, and at the lower of cost or market, determined on the LIFO cost method. December 31 Summary of Property, Plant and Equipment, Net 2015 2014 Land $ 164 $ 177 Buildings 2,537 2,574 Machinery and equipment 13,393 13,437 Construction in progress 453 591 16,547 16,779 Less accumulated depreciation (9,443 ) (9,420 ) Total $ 7,104 $ 7,359 Property, plant and equipment, net in the United States as of December 31, 2015 and 2014 was $3,716 and $3,685 , respectively. December 31 Summary of Accrued Expenses 2015 2014 Accrued advertising and promotion $ 339 $ 326 Accrued salaries and wages 392 415 Accrued rebates 229 258 Accrued taxes - income and other 329 330 Derivatives 36 113 Other 425 532 Total $ 1,750 $ 1,974 Supplemental Cash Flow Statement Data Summary of Cash Flow Effects of Decrease (Increase) in Operating Working Capital Year Ended December 31 2015 2014 2013 Accounts receivable $ 60 $ 267 $ 4 Inventories (28 ) 12 100 Trade accounts payable 44 (30 ) 128 Accrued expenses (110 ) (120 ) (177 ) Accrued income taxes (81 ) (159 ) (90 ) Derivatives (63 ) 103 5 Currency and other (267 ) (249 ) (128 ) Total $ (445 ) $ (176 ) $ (158 ) Year Ended December 31 Other Cash Flow Data 2015 2014 2013 Interest paid $ 308 $ 300 $ 307 Income taxes paid 695 926 776 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2015 , 2014 AND 2013 (Millions of dollars) Description Balance at Beginning of Period Additions Deductions Charged to Costs and Expenses Charged to Other Accounts (a) Write-Offs and Reclassifications Balance at End of Period December 31, 2015 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 50 $ 12 $ (10 ) $ 2 (b) $ 50 Allowances for sales discounts 16 256 (1 ) 256 (c) 15 December 31, 2014 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 51 $ 13 $ (7 ) $ 7 (b) $ 50 Allowances for sales discounts 20 265 (1 ) 268 (c) 16 December 31, 2013 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 60 $ — $ (4 ) $ 5 (b) $ 51 Allowances for sales discounts 20 275 (1 ) 274 (c) 20 (a) Includes bad debt recoveries and the effects of changes in foreign currency exchange rates. (b) Primarily uncollectible receivables written off. (c) Sales discounts allowed. Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions (a) Balance at End of Period December 31, 2015 Deferred taxes Valuation allowance $ 215 $ 78 $ — $ 19 $ 274 December 31, 2014 Deferred taxes Valuation allowance $ 197 $ 30 $ — $ 12 $ 215 December 31, 2013 Deferred taxes Valuation allowance $ 215 $ (11 ) $ — $ 7 $ 197 (a) Represents the net currency effects of translating valuation allowances at current rates of exchange. |
Accounting Policies (Policy)
Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Estimates are used in accounting for, among other things, sales incentives and trade promotion allowances, employee postretirement benefits, and deferred income taxes and potential assessments. |
Cash Equivalents | Cash Equivalents Cash equivalents are short-term investments with an original maturity date of three months or less. |
Inventories and Distribution Costs | Inventories and Distribution Costs Most U.S. inventories are valued at the lower of cost, using the Last-In, First-Out ("LIFO") method, or market. The balance of the U.S. inventories and inventories of consolidated operations outside the U.S. are valued at the lower of cost and net realizable value using either the First-In, First-Out ("FIFO") or weighted-average cost methods. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Distribution costs are classified as cost of products sold. |
Property and Depreciation | Property and Depreciation Property, plant and equipment are stated at cost and are depreciated on the straight-line method. Buildings are depreciated over their estimated useful lives, primarily 40 years . Machinery and equipment are depreciated over their estimated useful lives, primarily ranging from 16 to 20 years . Purchases of computer software, including external costs and certain internal costs (including payroll and payroll-related costs of employees) directly associated with developing significant computer software applications for internal use, are capitalized. Computer software costs are amortized on the straight-line method over the estimated useful life of the software, which generally does not exceed 5 years . Estimated useful lives are periodically reviewed and, when warranted, changes are made to them. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss would be indicated when estimated undiscounted future cash flows from the use and eventual disposition of an asset group, which are identifiable and largely independent of the cash flows of other asset groups, are less than the carrying amount of the asset group. Measurement of an impairment loss would be based on the excess of the carrying amount of the asset group over its fair value. Fair value is measured using discounted cash flows or independent appraisals, as appropriate. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the Consolidated Balance Sheet and any gain or loss on the transaction is included in income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is not amortized, but rather is assessed for impairment annually and whenever events and circumstances indicate that impairment may have occurred. Impairment testing compares the reporting unit carrying amount of goodwill with its fair value. If the reporting unit carrying amount of goodwill exceeds its fair value, an impairment charge would be recorded. In our evaluation of goodwill impairment, we have the option to first assess qualitative factors such as macroeconomic, industry and competitive conditions, legal and regulatory environment, historical and projected financial performance, significant changes in the reporting unit and the magnitude of excess fair value over carrying amount from the previous quantitative impairment testing. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test using discounted cash flows to estimate fair value must be performed. On the other hand, if the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is more than its carrying value, then further quantitative testing is not required. For 2015, we have completed the required annual assessment of goodwill for impairment for all of our reporting units using a qualitative assessment as of the first day of the third quarter, and have determined that it is more likely than not that the fair value is more than the carrying amount for each of our reporting units. Intangible assets with finite lives are amortized over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Estimated useful lives range from 2 to 20 years for trademarks, 5 to 15 years for patents and developed technologies, and 5 to 15 years for other intangible assets. An impairment loss would be indicated when estimated undiscounted future cash flows from the use of the asset are less than its carrying amount. An impairment loss would be measured as the difference between the fair value (based on discounted future cash flows) and the carrying amount of the asset. |
Investments in Equity Companies | Investments in Equity Companies Investments in companies which we do not control but over which we have the ability to exercise significant influence and that, in general, are at least 20 percent-owned by us, are stated at cost plus equity in undistributed net income. These investments are evaluated for impairment when warranted. An impairment loss would be recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other than temporary. In judging "other than temporary," we would consider the length of time and extent to which the fair value of the equity company investment has been less than the carrying amount, the near-term and longer-term operating and financial prospects of the equity company, and our longer-term intent of retaining the investment in the equity company. |
Revenue Recognition | Revenue Recognition Sales revenue is recognized at the time of product shipment or delivery, depending on when title passes, to unaffiliated customers, and when all of the following have occurred: a firm sales agreement is in place, pricing is fixed or determinable, and collection is reasonably assured. Sales are reported net of returns, consumer and trade promotions, rebates and freight allowed. Taxes imposed by governmental authorities on our revenue-producing activities with customers, such as sales taxes and value-added taxes, are excluded from net sales. |
Sales Incentives and Trade Promotion Allowances | Sales Incentives and Trade Promotion Allowances The cost of promotion activities provided to customers is classified as a reduction in sales revenue. In addition, the estimated redemption value of consumer coupons is recorded at the time the coupons are issued and classified as a reduction in sales revenue. |
Advertising Expense | Advertising Expense Advertising costs are expensed in the year the related advertisement or campaign is first presented by the media. For interim reporting purposes, advertising expenses are charged to operations as a percentage of sales based on estimated sales and related advertising expense for the full year. |
Research Expense | Research Expense Research and development costs are charged to expense as incurred. |
Foreign Currency Translation | Foreign Currency Translation The income statements of foreign operations, other than those in highly inflationary economies, are translated into U.S. dollars at rates of exchange in effect each month. The balance sheets of these operations are translated at period-end exchange rates, and the differences from historical exchange rates are reflected in stockholders' equity as unrealized translation adjustments. |
Derivative Instruments and Hedging | Derivative Instruments and Hedging Our policies allow the use of derivatives for risk management purposes and prohibit their use for speculation. Our policies also prohibit the use of any leveraged derivative instrument. Consistent with our policies, foreign currency derivative instruments, interest rate swaps and locks, and the majority of commodity hedging contracts are entered into with major financial institutions. At inception we formally designate certain derivatives as cash flow, fair value or net investment hedges and establish how the effectiveness of these hedges will be assessed and measured. This process links the derivatives to the transactions or financial balances they are hedging. Changes in the fair value of derivatives not designated as hedging instruments are recorded in earnings as they occur. All derivative instruments are recorded as assets or liabilities on the balance sheet at fair value. Changes in the fair value of derivatives are either recorded in the income statement or other comprehensive income, as appropriate. The gain or loss on derivatives designated as fair value hedges and the offsetting loss or gain on the hedged item attributable to the hedged risk are included in income in the period that changes in fair value occur. The effective portion of the gain or loss on derivatives designated as cash flow hedges is included in other comprehensive income in the period that changes in fair value occur, and is reclassified to income in the same period that the hedged item affects income. The gain or loss on derivatives designated as hedges of investments in foreign subsidiaries is recognized in other comprehensive income to offset the change in value of the net investments being hedged. Any ineffective portion of cash flow hedges and net investment hedges is immediately recognized in income. Certain foreign-currency derivative instruments not designated as hedging instruments have been entered into to manage a portion of our foreign currency transactional exposures. The gain or loss on these derivatives is included in income in the period that changes in their fair values occur. |
2014 Organization Restructuri27
2014 Organization Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
2014 Organization Restructuring | |
Restructuring Cost and Reserve | |
Charges incurred in connection with restructuring | Charges were recorded in the following income statement line items: Year Ended December 31 2015 2014 Cost of products sold $ 23 $ 40 Marketing, research and general expenses 40 93 Provision for income taxes (21 ) (38 ) Net charges $ 42 $ 95 |
Fair Value Information (Tables)
Fair Value Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | The following table includes the fair value of our financial instruments for which disclosure of fair value is required: Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value December 31, 2015 December 31, 2014 Assets Cash and cash equivalents (a) 1 $ 619 $ 619 $ 789 $ 789 Time deposits and other (b) 1 124 124 130 130 Liabilities and redeemable securities of subsidiaries Short-term debt (c) 2 1,071 1,071 777 777 Long-term debt (d) 2 6,704 7,300 6,179 6,963 Redeemable preferred securities of subsidiaries (e) 3 64 64 72 72 (a) Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at cost, which approximates fair value. (b) Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of greater than one year, included in other current assets or other assets in the Consolidated Balance Sheet, as appropriate. Other, included in other current assets, is composed of funds held in escrow. Time deposits and other are recorded at cost, which approximates fair value. (c) Short-term debt is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value. (d) Long-term debt includes the current portion of these debt instruments. Fair values were estimated based on quoted prices for financial instruments for which all significant inputs were observable, either directly or indirectly. (e) The redeemable preferred securities of subsidiaries are not traded in active markets. For certain instruments, fair values were calculated using a floating rate pricing model that compared the stated spread to the fair value spread to determine the price at which each of the financial instruments should trade. The model used the following inputs to calculate fair values: face value, current LIBOR rate, unobservable fair value credit spread, stated spread, maturity date and interest or dividend payment dates. Additionally, the fair value of the remaining redeemable securities was based on various inputs, including an independent third-party appraisal, adjusted for current market conditions. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill by business segment are as follows: Personal Care Consumer Tissue K-C Professional Health Care Business Total Balance at December 31, 2013 $ 684 $ 641 $ 424 $ 1,432 $ 3,181 Currency and other (59 ) (47 ) (15 ) (3 ) (124 ) Spin-off of health care business — — — (1,429 ) (1,429 ) Balance at December 31, 2014 625 594 409 — 1,628 Currency and other (92 ) (70 ) (20 ) — (182 ) Balance at December 31, 2015 $ 533 $ 524 $ 389 $ — $ 1,446 |
Intangible assets subject to amortization | Intangible assets subject to amortization consist of the following at December 31: 2015 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Trademarks $ 109 $ 77 $ 117 $ 79 Patents and developed technologies 47 11 49 9 Other 60 34 64 33 Total $ 216 $ 122 $ 230 $ 121 |
Debt and Reedemable Preferred S
Debt and Reedemable Preferred Securities of Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt is composed of the following: Weighted- Average Interest Rate Maturities December 31 2015 2014 Notes and debentures 4.3% 2016 - 2045 $ 6,396 $ 5,656 Dealer remarketable securities — — — 200 Industrial development revenue bonds 0.1% 2018 - 2034 264 261 Bank loans and other financings in various currencies 8.1% 2016 - 2025 44 62 Total long-term debt 6,704 6,179 Less current portion 598 549 Long-term portion $ 6,106 $ 5,630 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Schedule of weighted-average fair value of options, assumptions used | The weighted-average fair value of options granted was estimated at $7.39 , $7.89 and $7.15 , in 2015 , 2014 and 2013 , respectively, per option on the date of grant based on the following assumptions: Year Ended December 31 2015 2014 2013 Dividend yield 3.50 % 3.50 % 3.70 % Volatility 13.42 % 13.41 % 15.40 % Risk-free interest rate 1.51 % 1.73 % 0.87 % Expected life - years 4.8 5.0 5.1 |
Schedule of total remaining unrecognized compensation costs and amortization period | Total remaining unrecognized compensation costs and amortization period are as follows: December 31, 2015 Weighted-Average Service Years Nonvested stock options $ 9 1.3 Restricted shares and time-vested restricted share units 5 1.9 Nonvested performance-based restricted share units 52 1.9 |
Summary of stock-based compensation | A summary of stock-based compensation is presented below: Stock Options Shares (in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2015 6,961 $ 82.32 Granted 1,779 110.73 Exercised (1,941 ) 71.97 Forfeited or expired (209 ) 103.43 Outstanding at December 31, 2015 6,590 92.35 6.76 $ 230 Exercisable at December 31, 2015 3,339 77.34 4.86 $ 167 |
Summary of nonvested restricted share units | Time-Vested Restricted Share Units Performance-Based Restricted Share Units Other Stock-Based Awards Shares (in thousands) Weighted- Average Grant-Date Fair Value Shares (in thousands) Weighted- Average Grant-Date Fair Value Nonvested at January 1, 2015 244 $ 86.34 1,809 $ 96.35 Granted 77 107.29 770 106.82 Vested (212 ) 83.01 (683 ) 78.17 Forfeited (7 ) 87.59 (135 ) 104.30 Nonvested at December 31, 2015 102 108.91 1,761 107.51 |
Employee Postretirement Benef32
Employee Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Benefit Cost Information or Defined Benefit Plan and Other Postretirement Benefit Plan | Summarized financial information about postretirement plans, excluding defined contribution retirement plans, is presented below: Pension Benefits Other Benefits Year Ended December 31 2015 2014 2015 2014 Change in Benefit Obligation Benefit obligation at beginning of year $ 6,860 $ 6,164 $ 788 $ 761 Service cost 38 46 12 13 Interest cost 187 279 32 35 Actuarial loss (gain) (150 ) 986 (53 ) 39 Currency and other (139 ) (207 ) (8 ) (4 ) Benefit payments from plans (235 ) (356 ) — — Direct benefit payments (12 ) (10 ) (54 ) (56 ) Settlements (2,590 ) (42 ) — — Benefit obligation at end of year 3,959 6,860 717 788 Change in Plan Assets Fair value of plan assets at beginning of year 5,914 5,567 — — Actual return on plan assets 54 694 — — Employer contributions 484 185 — — Currency and other (119 ) (142 ) — — Benefit payments (235 ) (356 ) — — Settlements (2,590 ) (34 ) — — Fair value of plan assets at end of year 3,508 5,914 — — Funded Status $ (451 ) $ (946 ) $ (717 ) $ (788 ) Amounts Recognized in the Balance Sheet Noncurrent asset - prepaid benefit cost $ 16 $ 6 $ — $ — Current liability - accrued benefit cost (11 ) (13 ) (50 ) (51 ) Noncurrent liability - accrued benefit cost (456 ) (939 ) (667 ) (737 ) Net amount recognized $ (451 ) $ (946 ) $ (717 ) $ (788 ) |
Principal Plans and all Other Pension Plans | Principal Plans All Other Pension Plans Total Year Ended December 31 2015 2014 2015 2014 2015 2014 Projected benefit obligation (“PBO”) $ 3,295 $ 6,312 $ 664 $ 548 $ 3,959 $ 6,860 Accumulated benefit obligation (“ABO”) 3,253 6,221 594 475 3,847 6,696 Fair value of plan assets 3,019 5,559 489 355 3,508 5,914 |
Pension Plans with an ABO in Excess of Plan Assets | December 31 2015 2014 PBO $ 2,115 $ 4,983 ABO 2,096 4,908 Fair value of plan assets 1,696 4,111 |
Components of Net Periodic Benefit Cost | Pension Benefits Other Benefits Year Ended December 31 2015 2014 2013 2015 2014 2013 Service cost $ 38 $ 46 $ 53 $ 12 $ 13 $ 17 Interest cost 187 279 257 32 35 32 Expected return on plan assets (a) (215 ) (332 ) (331 ) — — — Recognized net actuarial loss 75 100 120 — — 3 Curtailments — — (32 ) — — — Settlements 1,357 20 1 — — — Other (10 ) (3 ) 1 (1 ) (1 ) (2 ) Net periodic benefit cost $ 1,432 $ 110 $ 69 $ 43 $ 47 $ 50 (a) The expected return on plan assets is determined by multiplying the fair value of plan assets at the remeasurement date, typically the prior year-end adjusted for estimated current year cash benefit payments and contributions, by the expected long-term rate of return. |
Weighted-Average Assumptions Used to Determine Net Cost | Pension Benefits Other Benefits Projected 2016 2015 2014 2013 2015 2014 2013 Discount rate 3.91 % 3.86 % 4.66 % 4.04 % 4.28 % 4.97 % 3.97 % Expected long-term return on plan assets 4.84 % 5.21 % 5.98 % 6.26 % — — — Rate of compensation increase 2.32 % 2.63 % 2.67 % 2.73 % — — — |
Weighted-Average Assumptions Used to Determine Benefit Obligations | Pension Benefits Other Benefits 2015 2014 2015 2014 Discount rate 3.91 % 3.83 % 4.59 % 4.28 % Rate of compensation increase 2.32 % 2.63 % — — |
Pension Plan Assets of the Principal Plans Measured at Fair Value | Fair Value Measurements at December 31, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and Cash Equivalents Held directly $ 14 $ 12 $ 2 $ — Held through mutual and pooled funds 34 — 34 — Fixed Income Held directly U.S. government and municipals 157 141 16 — U.S. corporate debt 21 — 21 — Held through mutual and pooled funds U.S. government and municipals 149 — 149 — U.S. corporate debt 623 — 623 — International bonds 1,236 — 1,236 — Equity Held directly U.S. equity 58 58 — — International equity 30 30 — — Held through mutual and pooled funds Non-U.S. equity 67 — 67 — Global equity 630 — 630 — Total Plan Assets $ 3,019 $ 241 $ 2,778 $ — For the U.S. pension plan, Treasury futures contracts are used when appropriate to manage duration targets. As of December 31, 2015 , the U.S. plan had Treasury futures contracts in place with a total notional value of approximately $15 and an insignificant fair value. Fair Value Measurements at December 31, 2014 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and Cash Equivalents Held directly $ 28 $ 28 $ — $ — Held through mutual and pooled funds 175 9 166 — Fixed Income Held directly U.S. government and municipals 252 71 181 — U.S. corporate debt 2,167 — 2,167 — U.S. securitized fixed income 6 — 6 — Held through mutual and pooled funds U.S. corporate debt 149 — 149 — International bonds 1,438 — 1,438 — Multi-sector 1 1 — — Equity Held directly U.S. equity 18 18 — — Held through mutual and pooled funds U.S. equity 4 4 — — Non-U.S. equity 106 1 105 — Global equity 1,186 — 1,186 — Other 29 29 — — Total Plan Assets $ 5,559 $ 161 $ 5,398 $ — |
Estimated Future Benefit Payments | Pension Benefits Other Benefits 2016 $ 217 $ 51 2017 234 53 2018 238 54 2019 242 56 2020 251 58 2021-2025 1,284 291 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | The effect of the change in ownership interest is as follows: 2015 Net Income Attributable to Kimberly-Clark Corporation $ 1,013 Decrease in Kimberly-Clark Corporation's additional paid-in capital for acquisition (94 ) Change from net income attributable to Kimberly-Clark Corporation and transfers to noncontrolling interests $ 919 |
Components of AOCI attributable to Kimberly-Clark | The changes in the components of accumulated other comprehensive income ("AOCI") attributable to Kimberly-Clark, net of tax, are as follows: Unrealized Translation Defined Benefit Pension Plans Other Postretirement Benefit Plans Cash Flow Hedges and Other Balance as of December 31, 2013 $ (525 ) $ (1,668 ) $ (15 ) $ (34 ) Other comprehensive income (loss) before reclassifications (819 ) (313 ) (23 ) 29 (Income) loss reclassified from AOCI — 57 (a) 1 (a) (11 ) Net current period other comprehensive income (loss) (819 ) (256 ) (22 ) 18 Spin-off of health care business 9 — — — Balance as of December 31, 2014 (1,335 ) (1,924 ) (37 ) (16 ) Other comprehensive income (loss) before reclassifications (942 ) 39 35 53 (Income) loss reclassified from AOCI 37 (b) 872 (a) (1 ) (a) (48 ) Net current period other comprehensive income (loss) (905 ) 911 34 5 Shares purchased from noncontrolling interests and other (12 ) — — 1 Balance as of December 31, 2015 $ (2,252 ) $ (1,013 ) $ (3 ) $ (10 ) (a) Included in computation of net periodic pension and postretirement benefits costs (see Note 9 ) |
Change in Components of Accumulated Other Comprehensive Income (Loss) | The changes in the components of AOCI attributable to Kimberly-Clark, including the tax effect, are as follows: Year Ended December 31 2015 2014 2013 Unrealized translation $ (882 ) $ (826 ) $ (495 ) Tax effect (23 ) 7 (4 ) (905 ) (819 ) (499 ) Defined benefit pension plans Unrecognized net actuarial loss and transition amount Funded status recognition (4 ) (624 ) 356 Amortization included in net periodic benefit cost 75 100 120 2015 U.S. plan settlements (recorded in Other (income) and expense, net) 1,355 — — Currency and other 42 69 (8 ) 1,468 (455 ) 468 Unrecognized prior service cost/credit Funded status recognition 4 42 — Amortization included in net periodic benefit cost (12 ) (7 ) (31 ) Currency and other (2 ) (3 ) (1 ) (10 ) 32 (32 ) Tax effect (547 ) 167 (176 ) 911 (256 ) 260 Other postretirement benefit plans Unrecognized net actuarial loss and transition amount 59 (36 ) 65 Unrecognized prior service cost/credit (4 ) — (3 ) Tax effect (21 ) 14 (24 ) 34 (22 ) 38 Cash flow hedges and other Recognition of effective portion of hedges 66 18 37 Amortization included in net income (53 ) (5 ) (10 ) Currency and other (7 ) 2 4 Tax effect (1 ) 3 (13 ) 5 18 18 Shares purchased from noncontrolling interests and other (11 ) — — Spin-off of health care business — 9 — Change in AOCI $ 34 $ (1,070 ) $ (183 ) |
Leases and Commitments (Tables)
Leases and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases and Commitments | |
Future Minimum Obligations under Operating Leases | The future minimum obligations under operating leases having a noncancelable term in excess of one year are as follows: Year Ending December 31 2016 $ 142 2017 115 2018 86 2019 67 2020 53 Thereafter 82 Future minimum obligations $ 545 |
Objectives and Strategies for35
Objectives and Strategies for Using Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of fair values of derivative instruments | Set forth below is a summary of the designated and undesignated fair values of our derivative instruments: Assets Liabilities 2015 2014 2015 2014 Foreign currency exchange contracts $ 56 $ 54 $ 27 $ 102 Commodity price contracts — — 15 10 Total $ 56 $ 54 $ 42 $ 112 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Analysis of the Provision for Income Taxes | An analysis of the provision for income taxes follows: Year Ended December 31 2015 2014 2013 Current income taxes United States $ 223 $ 350 $ 292 State 56 48 99 Other countries 394 387 286 Total 673 785 677 Deferred income taxes United States (180 ) 67 85 State (74 ) (16 ) 14 Other countries (1 ) 20 52 Total (255 ) 71 151 Total provision for income taxes $ 418 $ 856 $ 828 |
Income before Income Taxes | Income from continuing operations before income taxes is earned in the following tax jurisdictions: Year Ended December 31 2015 2014 2013 United States $ 451 $ 1,571 $ 1,557 Other countries 884 684 1,084 Total income before income taxes $ 1,335 $ 2,255 $ 2,641 |
Deferred Income Tax assets (Liabilities) | Deferred income tax assets and liabilities are composed of the following: December 31 2015 2014 Deferred tax assets Pension and other postretirement benefits $ 682 $ 883 Tax credits and loss carryforwards 443 538 Other 599 667 1,724 2,088 Valuation allowance (274 ) (215 ) Total deferred tax assets 1,450 1,873 Deferred tax liabilities Pension and other postretirement benefits 254 260 Property, plant and equipment, net 1,118 1,162 Investments in subsidiaries 186 223 Other 281 339 Total deferred tax liabilities 1,839 1,984 Net deferred tax assets (liabilities) $ (389 ) $ (111 ) |
Reconciliation of Income Tax Provision | Presented below is a reconciliation of the income tax provision computed at the U.S. federal statutory tax rate to the actual effective tax rate: Year Ended December 31 2015 2014 2013 U.S. statutory rate applied to income before income taxes 35.0 % 35.0 % 35.0 % Rate of state income taxes, net of federal tax benefit (0.9 ) 0.7 2.7 Statutory rates other than U.S. statutory rate (6.9 ) (3.0 ) (3.0 ) Venezuela deconsolidation, balance sheet remeasurement and inflationary impacts 4.5 4.9 (0.8 ) Uncertain tax positions adjustment (a) 3.7 — — Routine tax incentives (b) (7.4 ) (3.6 ) (3.9 ) Net tax cost on foreign income (b) 5.1 3.6 1.6 Other - net (c) (1.8 ) 0.4 (0.2 ) Effective income tax rate 31.3 % 38.0 % 31.4 % |
Unrecognized Income Tax Benefits | Presented below is a reconciliation of the beginning and ending amounts of unrecognized income tax benefits: 2015 2014 2013 Balance at January 1 $ 416 $ 473 $ 435 Gross increases for tax positions of prior years 80 36 73 Gross decreases for tax positions of prior years (61 ) (91 ) (31 ) Gross increases for tax positions of the current year 59 87 37 Settlements (63 ) (77 ) (35 ) Other (25 ) (12 ) (6 ) Balance at December 31 $ 406 $ 416 $ 473 |
Summary of Income Tax Examinations | As of December 31, 2015 , the following tax years remain subject to examination for the major jurisdictions where we conduct business: Jurisdiction Years United States 2012 to 2015 United Kingdom 2012 to 2015 Brazil 2010 to 2015 Korea 2014 to 2015 China 2006 to 2015 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Average Common Shares Outstanding Basic and Diluted | The average number of common shares outstanding is reconciled to those used in the basic and diluted EPS computations as follows: (Millions of shares) 2015 2014 2013 Basic 363.8 374.5 384.0 Dilutive effect of stock options and restricted share unit awards 2.5 2.9 3.3 Diluted 366.3 377.4 387.3 |
Options Outstanding not Included in Computation of Diluted EPS | Options outstanding that were not included in the computation of diluted EPS because their exercise price was greater than the average market price of the common shares were insignificant. |
Business Segment and Geographic
Business Segment and Geographic Data Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting Information | |
Information Concerning Consolidated Operations by Business Segment | Information concerning consolidated operations by business segment is presented in the following tables: Consolidated Operations by Business Segment Year Ended December 31 2015 2014 2013 NET SALES (a) Personal Care $ 9,204 $ 9,635 $ 9,536 Consumer Tissue 6,121 6,645 6,637 K-C Professional 3,219 3,388 3,323 Corporate & Other 47 56 65 TOTAL NET SALES $ 18,591 $ 19,724 $ 19,561 OPERATING PROFIT (b) Personal Care $ 1,885 $ 1,803 $ 1,698 Consumer Tissue 1,073 1,062 988 K-C Professional 590 604 605 Corporate & Other (c) (367 ) (495 ) (381 ) Other (income) and expense, net (d) 1,568 453 7 TOTAL OPERATING PROFIT $ 1,613 $ 2,521 $ 2,903 (a) Net sales in the United States to third parties totaled $8,819 , $8,573 and $8,557 in 2015 , 2014 and 2013 , respectively. (b) Segment operating profit excludes other (income) and expense, net and income and expenses not associated with the business segments. (c) Corporate & Other includes charges related to the 2014 Organization Restructuring of $63 and $133 , and $5 and $41 related to the remeasurement of the Venezuelan balance sheet, in 2015 and 2014 , respectively. Corporate & Other also includes $23 for restructuring in Turkey in 2015 , and $33 and $76 related to European strategic changes in 2014 and 2013, respectively (d) Other (income) and expense, net for 2015 and 2014 include charges of $40 and $421 , respectively, related to the remeasurement of the Venezuelan balance sheet. In addition, 2015 includes charges of $108 for the deconsolidation of our Venezuelan operations and $1,358 for charges related to pension settlements and 2014 includes a charge of $35 related to a regulatory dispute in the Middle East. The results for 2013 include a balance sheet remeasurement charge of $36 due to a devaluation of the Venezuelan bolivar and a charge of $5 for European strategic changes. Personal Care Consumer Tissue K-C Professional Corporate & Other Ongoing Operations Health Care Business (Spun-off) Consolidated Total Depreciation and Amortization 2015 $ 340 $ 282 $ 121 $ 3 $ 746 $ — $ 746 2014 359 299 132 3 793 69 862 2013 332 318 138 4 792 71 863 Assets 2015 6,330 5,050 2,264 1,198 14,842 — 14,842 2014 6,373 5,229 2,339 1,585 15,526 — 15,526 2013 6,623 5,483 2,431 2,012 16,549 2,370 18,919 Capital Spending 2015 590 344 116 6 1,056 — 1,056 2014 501 314 143 6 964 75 1,039 2013 461 328 118 2 909 44 953 |
Sales of Principal Products | (Billions of dollars) 2015 2014 2013 Consumer tissue products $ 6.1 $ 6.6 $ 6.6 Baby and child care products 6.6 7.0 7.0 Away-from-home professional products 3.2 3.4 3.3 All other 2.7 2.7 2.7 Consolidated $ 18.6 $ 19.7 $ 19.6 |
Supplemental Data (Tables)
Supplemental Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Income Statement Data | Supplemental Income Statement Data Year Ended December 31 2015 2014 2013 Advertising expense $ 710 $ 767 $ 769 Research expense 324 368 333 |
Equity Method Investments Data | Equity Companies' Data Net Sales Gross Profit Operating Profit Net Income Corporation's Share of Net Income 2015 $ 2,255 $ 773 $ 497 $ 308 $ 149 2014 2,452 781 485 304 146 2013 2,638 950 642 426 205 Current Assets Non- Current Assets Current Liabilities Non- Current Liabilities Stockholders' Equity 2015 $ 1,103 $ 993 $ 508 $ 1,068 $ 520 2014 1,016 1,040 690 963 403 2013 1,197 1,124 847 845 629 |
Supplemental Balance Sheet Data | December 31 Summary of Property, Plant and Equipment, Net 2015 2014 Land $ 164 $ 177 Buildings 2,537 2,574 Machinery and equipment 13,393 13,437 Construction in progress 453 591 16,547 16,779 Less accumulated depreciation (9,443 ) (9,420 ) Total $ 7,104 $ 7,359 Property, plant and equipment, net in the United States as of December 31, 2015 and 2014 was $3,716 and $3,685 , respectively. |
Schedule of Accrued Liabilities | December 31 Summary of Accrued Expenses 2015 2014 Accrued advertising and promotion $ 339 $ 326 Accrued salaries and wages 392 415 Accrued rebates 229 258 Accrued taxes - income and other 329 330 Derivatives 36 113 Other 425 532 Total $ 1,750 $ 1,974 |
Supplemental Cash Flow Data | Supplemental Cash Flow Statement Data Summary of Cash Flow Effects of Decrease (Increase) in Operating Working Capital Year Ended December 31 2015 2014 2013 Accounts receivable $ 60 $ 267 $ 4 Inventories (28 ) 12 100 Trade accounts payable 44 (30 ) 128 Accrued expenses (110 ) (120 ) (177 ) Accrued income taxes (81 ) (159 ) (90 ) Derivatives (63 ) 103 5 Currency and other (267 ) (249 ) (128 ) Total $ (445 ) $ (176 ) $ (158 ) Year Ended December 31 Other Cash Flow Data 2015 2014 2013 Interest paid $ 308 $ 300 $ 307 Income taxes paid 695 926 776 |
Accounts Receivable, Net | |
Supplemental Balance Sheet Data | December 31 Summary of Accounts Receivable, Net 2015 2014 From customers $ 2,017 $ 2,079 Other 329 210 Less allowance for doubtful accounts and sales discounts (65 ) (66 ) Total $ 2,281 $ 2,223 |
Inventories | |
Supplemental Balance Sheet Data | December 31 2015 2014 Summary of Inventories by Major Class LIFO Non- LIFO Total LIFO Non- LIFO Total Raw materials $ 100 $ 297 $ 397 $ 104 $ 322 $ 426 Work in process 110 93 203 120 95 215 Finished goods 525 689 1,214 511 672 1,183 Supplies and other — 278 278 — 288 288 735 1,357 2,092 735 1,377 2,112 Excess of FIFO or weighted-average cost over (183 ) — (183 ) (220 ) — (220 ) Total $ 552 $ 1,357 $ 1,909 $ 515 $ 1,377 $ 1,892 |
Other Cash Flow Data and Interest Expense | |
Supplemental Cash Flow Data | Year Ended December 31 Other Cash Flow Data 2015 2014 2013 Interest paid $ 308 $ 300 $ 307 Income taxes paid 695 926 776 |
Valuation and Qualifying Acco40
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts [Table Text Block] | KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2015 , 2014 AND 2013 (Millions of dollars) Description Balance at Beginning of Period Additions Deductions Charged to Costs and Expenses Charged to Other Accounts (a) Write-Offs and Reclassifications Balance at End of Period December 31, 2015 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 50 $ 12 $ (10 ) $ 2 (b) $ 50 Allowances for sales discounts 16 256 (1 ) 256 (c) 15 December 31, 2014 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 51 $ 13 $ (7 ) $ 7 (b) $ 50 Allowances for sales discounts 20 265 (1 ) 268 (c) 16 December 31, 2013 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 60 $ — $ (4 ) $ 5 (b) $ 51 Allowances for sales discounts 20 275 (1 ) 274 (c) 20 (a) Includes bad debt recoveries and the effects of changes in foreign currency exchange rates. (b) Primarily uncollectible receivables written off. (c) Sales discounts allowed. Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions (a) Balance at End of Period December 31, 2015 Deferred taxes Valuation allowance $ 215 $ 78 $ — $ 19 $ 274 December 31, 2014 Deferred taxes Valuation allowance $ 197 $ 30 $ — $ 12 $ 215 December 31, 2013 Deferred taxes Valuation allowance $ 215 $ (11 ) $ — $ 7 $ 197 (a) Represents the net currency effects of translating valuation allowances at current rates of exchange. |
Accounting Policies (Narrative)
Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Charges related to Venezuelan Operations | $ 462 | $ 36 | |
K-C Venezuela | |||
Central Bank system rate | 6.3 | ||
Venezuela effective exchange rate | 6.3 | ||
Charges related to Venezuelan Operations | $ 45 | $ 462 | |
K-C Venezuela net sales as a percentage of consolidated net sales | 3.00% | 2.00% | |
K-C Venezuela | After Tax | |||
Deconsolidation, Gain (Loss), Amount | (102) | ||
K-C Venezuela | Before Tax | |||
Deconsolidation, Gain (Loss), Amount | $ (108) | ||
Trademarks | Minimum | |||
Intangible assets estimated useful life | 2 years | ||
Trademarks | Maximum | |||
Intangible assets estimated useful life | 20 years | ||
Patents and developed technologies | Minimum | |||
Intangible assets estimated useful life | 5 years | ||
Patents and developed technologies | Maximum | |||
Intangible assets estimated useful life | 15 years | ||
Other | Minimum | |||
Intangible assets estimated useful life | 5 years | ||
Other | Maximum | |||
Intangible assets estimated useful life | 15 years | ||
Building | |||
Estimated useful life | 40 years | ||
Machinery and Equipment | Minimum | |||
Estimated useful life | 16 years | ||
Machinery and Equipment | Maximum | |||
Estimated useful life | 20 years | ||
Software | |||
Estimated useful life | 5 years | ||
Cost of Sales | K-C Venezuela | |||
Charges related to Venezuelan Operations | $ 5 | $ 41 | |
Other Income | K-C Venezuela | |||
Charges related to Venezuelan Operations | $ 40 | $ 421 | |
SIMADI exchange rate | K-C Venezuela | |||
Bolivar to USD exchange rate | 199 | ||
SICAD II exchange rate | K-C Venezuela | |||
Bolivar to USD exchange rate | 50 |
2014 Organization Restructuri42
2014 Organization Restructuring Narrative (Details) - 2014 Organization Restructuring - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve | ||
Expected cash costs as a percentage of total restructuring charges | 80.00% | |
Cash payments related to restructuring | $ 86 | |
Before Tax | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 63 | $ 133 |
Minimum | ||
Restructuring Cost and Reserve | ||
Expected restructuring costs | 130 | |
Minimum | Before Tax | ||
Restructuring Cost and Reserve | ||
Expected restructuring costs | 190 | |
Maximum | ||
Restructuring Cost and Reserve | ||
Expected restructuring costs | 160 | |
Maximum | Before Tax | ||
Restructuring Cost and Reserve | ||
Expected restructuring costs | $ 230 |
2014 Organization Restructuri43
2014 Organization Restructuring Tables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve | |||
Provision for income taxes | $ 418 | $ 856 | $ 828 |
2014 Organization Restructuring | |||
Restructuring Cost and Reserve | |||
Provision for income taxes | (21) | (38) | |
Net charges | 42 | 95 | |
2014 Organization Restructuring | Cost of products sold | |||
Restructuring Cost and Reserve | |||
Restructuring Charges | 23 | 40 | |
2014 Organization Restructuring | Marketing, research and general Expenses | |||
Restructuring Cost and Reserve | |||
Restructuring Charges | $ 40 | $ 93 |
Spinoff of Health Care Busine44
Spinoff of Health Care Business and Related Costs - Narrative (Details) - Health Care Spin-off - USD ($) $ in Millions | 10 Months Ended | 12 Months Ended |
Oct. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Corporate costs allocated to the health care segment retained in continuing operations | $ 70 | $ 85 |
Transaction and related costs, pre-tax | 157 | |
Transaction and related costs, after-tax | $ 138 |
European Strategic Changes (Nar
European Strategic Changes (Narrative) (Details) - European Strategic Changes $ in Millions | 12 Months Ended | 26 Months Ended | |
Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2014USD ($) | |
Restructuring Cost and Reserve | |||
Sale or closure of European manufacturing facilities | 5 | ||
Net charges | $ 30 | $ 66 | $ 338 |
Restructuring Charges | $ 413 | ||
Cash payments | $ 41 | $ 156 |
Fair Value Information Narrativ
Fair Value Information Narrative (Details) - Fair Value, Inputs, Level 2 - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Company-owned life insurance (COLI) | $ 57 | $ 58 |
Derivative assets | 56 | 54 |
Derivative liabilities | $ 42 | $ 112 |
Fair Value Information (Fair Va
Fair Value Information (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Inputs, Level 1 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents(a) | [1] | $ 619 | $ 789 |
Time deposits and other(b) | [2] | 124 | 130 |
Fair Value, Inputs, Level 1 | Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents(a) | [1] | 619 | 789 |
Time deposits and other(b) | [2] | 124 | 130 |
Fair Value, Inputs, Level 2 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Short-term debt(c) | [3] | 1,071 | 777 |
Long-term debt(d) | [4] | 6,704 | 6,179 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Short-term debt(c) | [3] | 1,071 | 777 |
Long-term debt(d) | [4] | 7,300 | 6,963 |
Fair Value, Inputs, Level 3 | Carrying Amount | Preferred securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Redeemable preferred securities of subsidiaries(e) | [5] | 64 | 72 |
Fair Value, Inputs, Level 3 | Estimated Fair Value | Preferred securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Redeemable preferred securities of subsidiaries(e) | [5] | $ 64 | $ 72 |
[1] | Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at cost, which approximates fair value. | ||
[2] | Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of greater than one year, included in other current assets or other assets in the Consolidated Balance Sheet, as appropriate. Other, included in other current assets, is composed of funds held in escrow. Time deposits and other are recorded at cost, which approximates fair value. | ||
[3] | Short-term debt is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value. | ||
[4] | Long-term debt includes the current portion of these debt instruments. Fair values were estimated based on quoted prices for financial instruments for which all significant inputs were observable, either directly or indirectly. | ||
[5] | The redeemable preferred securities of subsidiaries are not traded in active markets. For certain instruments, fair values were calculated using a floating rate pricing model that compared the stated spread to the fair value spread to determine the price at which each of the financial instruments should trade. The model used the following inputs to calculate fair values: face value, current LIBOR rate, unobservable fair value credit spread, stated spread, maturity date and interest or dividend payment dates. Additionally, the fair value of the remaining redeemable securities was based on various inputs, including an independent third-party appraisal, adjusted for current market conditions. |
Acquisitions and Intangible Ass
Acquisitions and Intangible Assets (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | ||
Goodwill, Beginning Balance | $ 1,628 | $ 3,181 |
Currency and other | (182) | (124) |
Spin-off of health care business | (1,429) | |
Goodwill, Ending Balance | 1,446 | 1,628 |
Personal Care | ||
Goodwill | ||
Goodwill, Beginning Balance | 625 | 684 |
Currency and other | (92) | (59) |
Spin-off of health care business | 0 | |
Goodwill, Ending Balance | 533 | 625 |
Consumer Tissue | ||
Goodwill | ||
Goodwill, Beginning Balance | 594 | 641 |
Currency and other | (70) | (47) |
Spin-off of health care business | 0 | |
Goodwill, Ending Balance | 524 | 594 |
K-C Professional and Other | ||
Goodwill | ||
Goodwill, Beginning Balance | 409 | 424 |
Currency and other | (20) | (15) |
Spin-off of health care business | 0 | |
Goodwill, Ending Balance | 389 | 409 |
Health Care | ||
Goodwill | ||
Goodwill, Beginning Balance | 0 | 1,432 |
Currency and other | 0 | (3) |
Spin-off of health care business | (1,429) | |
Goodwill, Ending Balance | $ 0 | $ 0 |
Acquisitions and Intangible A49
Acquisitions and Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Indefinite-lived Intangible Assets | ||
Gross Carrying Amount | $ 216 | $ 230 |
Accumulated Amortization | 122 | 121 |
Trademarks | ||
Indefinite-lived Intangible Assets | ||
Gross Carrying Amount | 109 | 117 |
Accumulated Amortization | 77 | 79 |
Patents and developed technologies | ||
Indefinite-lived Intangible Assets | ||
Gross Carrying Amount | 47 | 49 |
Accumulated Amortization | 11 | 9 |
Other | ||
Indefinite-lived Intangible Assets | ||
Gross Carrying Amount | 60 | 64 |
Accumulated Amortization | $ 34 | $ 33 |
Debt and Redeemable Preferred50
Debt and Redeemable Preferred Securities of Subsidiaries (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | |
Debt Instrument | ||||||
Scheduled maturity of long-term debt in 2016 | $ 598 | |||||
Scheduled maturity of long-term debt in 2017 | 964 | |||||
Scheduled maturity of long-term debt in 2018 | 933 | |||||
Scheduled maturity of long-term debt in 2019 | 308 | |||||
Scheduled maturity of long-term debt in 2020 | 755 | |||||
Redeemable Preferred Securities of Subsidiaries | $ 500 | |||||
Expiring 2,019 | ||||||
Debt Instrument | ||||||
Revolving credit facility | $ 2,000 | |||||
Expiration date of revolving credit facility | Jun. 30, 2019 | |||||
Dealer Remarketable Securities | ||||||
Debt Instrument | ||||||
Face amount of note | $ 200 | |||||
2.15% Notes due August 15, 2020 | ||||||
Debt Instrument | ||||||
Face amount of note | $ 250 | |||||
Interest rate of note | 2.15% | |||||
3.05% Notes due August 15, 2025 | ||||||
Debt Instrument | ||||||
Face amount of note | $ 300 | |||||
Interest rate of note | 3.05% | |||||
Notes due August 2015 | ||||||
Debt Instrument | ||||||
Face amount of note | $ 300 | |||||
1.85% Notes due March 1, 2020 | ||||||
Debt Instrument | ||||||
Face amount of note | $ 250 | |||||
Interest rate of note | 1.85% | |||||
2.65% Notes due March 1, 2025 | ||||||
Debt Instrument | ||||||
Face amount of note | $ 250 | |||||
Interest rate of note | 2.65% | |||||
Aggregate principle amount due October 15, 2022 | ||||||
Debt Instrument | ||||||
Debt issuance date | Oct. 17, 2014 | |||||
Health Care Spin-off | ||||||
Debt Instrument | ||||||
Face amount of note | $ 640 | |||||
Floating rate note due May 19, 2016 | ||||||
Debt Instrument | ||||||
Debt issuance date | May 22, 2014 | |||||
Face amount of note | $ 300 | |||||
Debt maturity date | May 19, 2016 | |||||
1.9% Notes due May 22, 2019 | ||||||
Debt Instrument | ||||||
Face amount of note | $ 300 | |||||
Debt maturity date | May 22, 2019 | |||||
Interest rate of note | 1.90% | |||||
Floating Rate Notes Due May 15, 2016 | ||||||
Debt Instrument | ||||||
Debt issuance date | May 31, 2013 | |||||
Face amount of note | $ 250 | |||||
Debt maturity date | May 15, 2016 | |||||
2.4% Notes Due June 1, 2023 | ||||||
Debt Instrument | ||||||
Face amount of note | $ 350 | |||||
Debt maturity date | Jun. 1, 2023 | |||||
Interest rate of note | 2.40% | |||||
3.7% Notes Due June 1, 2043 | ||||||
Debt Instrument | ||||||
Face amount of note | $ 250 | |||||
Debt maturity date | Jun. 1, 2043 | |||||
Interest rate of note | 3.70% | |||||
5% Notes Due August 15, 2013 | ||||||
Debt Instrument | ||||||
Face amount of note | $ 500 | |||||
Debt maturity date | Aug. 15, 2013 | |||||
Interest rate of note | 5.00% |
Debt and Redeemable Preferred51
Debt and Redeemable Preferred Securities of Subsidiaries (Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument | ||
Total long-term debt | $ 6,704 | $ 6,179 |
Less current portion | 598 | 549 |
Long-term portion | $ 6,106 | 5,630 |
Notes and Debentures | ||
Debt Instrument | ||
Weighted- Average Interest Rate | 4.30% | |
Maturities (start) | Jan. 1, 2016 | |
Maturities (end) | Dec. 31, 2045 | |
Total long-term debt | $ 6,396 | 5,656 |
Dealer Remarketable Securities | ||
Debt Instrument | ||
Weighted- Average Interest Rate | 0.00% | |
Total long-term debt | $ 0 | 200 |
Industrial Development Revenue Bonds | ||
Debt Instrument | ||
Weighted- Average Interest Rate | 0.10% | |
Maturities (start) | Jan. 1, 2018 | |
Maturities (end) | Dec. 31, 2034 | |
Total long-term debt | $ 264 | 261 |
Bank Loans And Other Financings In Various Currencies | ||
Debt Instrument | ||
Weighted- Average Interest Rate | 8.10% | |
Maturities (start) | Jan. 1, 2016 | |
Maturities (end) | Dec. 31, 2025 | |
Total long-term debt | $ 44 | $ 62 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares of common stock available for grants | 20,000,000 | ||
Stock-based compensation | $ 75 | $ 52 | $ 92 |
Deferred income tax benefits on stock-based compensation | $ 29 | $ 19 | $ 35 |
Weighted-average fair value of options granted | $ 7.39 | $ 7.89 | $ 7.15 |
Excess tax benefits | $ 37 | $ 37 | $ 50 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock options term, years | 10 years | ||
Vesting percentage at the end of each of the first two 12 months period | 30.00% | ||
Vesting percentage at the end of third 12 months period | 40.00% | ||
Total intrinsic value of options exercised | $ 83 | 79 | 138 |
Restricted share units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Restricted shares vesting period | 3 years | ||
Performance-based restricted share units | Minimum | Share-based Compensation Award, Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of performance-based share units that vest, percentage | 0.00% | ||
Performance-based restricted share units | Maximum | Share-based Compensation Award, Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of performance-based share units that vest, percentage | 200.00% | ||
Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total fair value of restricted shares and restricted share units | $ 99 | $ 102 | $ 45 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Assumptions Used to Estimate Weighted-Average Fair Value of Options Granted) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yield | 3.50% | 3.50% | 3.70% |
Volatility | 13.42% | 13.41% | 15.40% |
Risk-free interest rate | 1.51% | 1.73% | 0.87% |
Expected life—years | 4 years 9 months 18 days | 5 years | 5 years 1 month 6 days |
Stock-Based Compensation (Sch54
Stock-Based Compensation (Schedule of Unrecognized Compensation Costs and Amortization Periods) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested stock options | $ 9 |
Weighted-Average Service Years | 1 year 3 months 18 days |
Restricted share units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total remaining unrecognized compensation costs, nonvested awards other than options | $ 5 |
Weighted-Average Service Years | 1 year 10 months 24 days |
Performance-based restricted share units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Total remaining unrecognized compensation costs, nonvested awards other than options | $ 52 |
Weighted-Average Service Years | 1 year 10 months 24 days |
Stock-Based Compensation (Sch55
Stock-Based Compensation (Schedule of Stock-Based Compensation Activity) (Details) - Employee Stock Option $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | |
Outstanding at January 1, 2014 | shares | 6,961 |
Granted | shares | 1,779 |
Exercised | shares | (1,941) |
Forfeited or expired | shares | (209) |
Outstanding at December 31, 2014 | shares | 6,590 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | |
Outstanding at January 1, Weighted-Average Exercise Price | $ / shares | $ 82.32 |
Granted, Weighted-Average Exercise Price | $ / shares | 110.73 |
Exercised, Weighted-Average Exercise Price | $ / shares | 71.97 |
Forfeited or expired, Weighted-Average Exercise Price | $ / shares | 103.43 |
Outstanding at December 31, Weighted-Average Exercise Price | $ / shares | $ 92.35 |
Exercisable at December 31, 2014 | shares | 3,339 |
Exercisable at December 31, Weighted-Average Exercise Price | $ / shares | $ 77.34 |
Outstanding at December 31, Weighted-Average Remaining Contractual Term | 6 years 9 months 4 days |
Exercisable at December 31, Weighted-Average Remaining Contractual Term | 4 years 10 months 10 days |
Outstanding at December 31, Aggregate Intrinsic Value | $ | $ 230 |
Exercisable at December 31, Aggregate Intrinsic Value | $ | $ 167 |
Stock-Based Compensation (Sch56
Stock-Based Compensation (Schedule of Other Stock-Based Awards Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Time-Vested Restricted Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |
Nonvested at January 1, 2014 | shares | 244 |
Granted | shares | 77 |
Vested | shares | (212) |
Forfeited | shares | (7) |
Nonvested at December 31, 2014 | shares | 102 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Nonvested at January 1, 2013, Weighted-Average Grant-Date Fair Value | $ / shares | $ 86.34 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 107.29 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 83.01 |
Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 87.59 |
Nonvested at December 31, 2013, Weighted-Average Grant-Date Fair Value | $ / shares | $ 108.91 |
Performance-Based Restricted Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |
Nonvested at January 1, 2014 | shares | 1,809 |
Granted | shares | 770 |
Vested | shares | (683) |
Forfeited | shares | (135) |
Nonvested at December 31, 2014 | shares | 1,761 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Nonvested at January 1, 2013, Weighted-Average Grant-Date Fair Value | $ / shares | $ 96.35 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 106.82 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 78.17 |
Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 104.30 |
Nonvested at December 31, 2013, Weighted-Average Grant-Date Fair Value | $ / shares | $ 107.51 |
Employee Postretirement Benef57
Employee Postretirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 5.80% | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed For Fifth Succeeding Fiscal Year | 4.60% | ||||
Defined Benefit Plan, Significant Concentrations of Risk | there were no significant concentrations of equity or debt securities in any single issuer or industry. | ||||
Defined Contribution Plan, Cost Recognized | $ 107 | $ 121 | $ 117 | ||
Group Annuity Contracts that Transferred | UNITED STATES | |||||
Defined Benefit Plan, Benefit Obligation | $ 2,500 | ||||
Defined Benefit Pension Plans | |||||
Fair value of plan assets | $ 3,508 | $ 5,914 | $ 5,567 | ||
Weighted-average expected long-term rate or return | 5.21% | 5.98% | 6.26% | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 100 | ||||
Defined Benefit Plan, Benefit Obligation | 3,959 | $ 6,860 | $ 6,164 | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 1,357 | 20 | $ 1 | ||
Cash contribution to pension trusts | 484 | 185 | |||
Defined Benefit Pension Plans | Scenario, Forecast | |||||
Weighted-average expected long-term rate or return | 4.84% | ||||
Defined Benefit Pension Plans | UNITED STATES | |||||
Cash contribution to pension trusts | 410 | ||||
Principal Plans | |||||
Fair value of plan assets | $ 3,019 | $ 5,559 | |||
Weighted-average expected long-term rate or return | 5.35% | 6.16% | |||
Defined Benefit Plan, Benefit Obligation | $ 3,295 | $ 6,312 | |||
Principal Plans | Scenario, Forecast | |||||
Weighted-average expected long-term rate or return | 5.10% | ||||
Fixed Income Funds | |||||
Defined Benefit Plan, Target Plan Asset Allocations | 70.00% | ||||
Equity Securities | |||||
Defined Benefit Plan, Target Plan Asset Allocations | 30.00% | ||||
Equity Option | U.S. Pension Plan | |||||
Derivative, Notional Amount | 950 | ||||
All Other | U.S. Pension Plan | |||||
Fair value of plan assets | 29 | ||||
Treasury Futures | U.S. Pension Plan | |||||
Derivative, Notional Amount | $ 15 | $ 510 | |||
After Tax | Defined Benefit Pension Plans | UNITED STATES | |||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 800 | ||||
Before Tax | Defined Benefit Pension Plans | UNITED STATES | |||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ 1,400 |
Employee Postretirement Benef58
Employee Postretirement Benefits (Summarized Financial Information about Postretirement plans, Excluding Defined Contribution Retirement Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noncurrent liability—accrued benefit cost | $ (1,137) | $ (1,693) | |
Defined Benefit Pension Plans | |||
Benefit obligation at beginning of year | 6,860 | 6,164 | |
Service cost | 38 | 46 | $ 53 |
Interest cost | 187 | 279 | 257 |
Actuarial loss (gain) | (150) | 986 | |
Currency and other | (139) | (207) | |
Benefit payments from plans | (235) | (356) | |
Direct benefit payments | (12) | (10) | |
Settlements | 2,590 | 42 | |
Benefit obligation at end of year | 3,959 | 6,860 | 6,164 |
Fair value of plan assets at beginning of year | 5,914 | 5,567 | |
Actual return on plan assets | 54 | 694 | |
Employer contributions | 484 | 185 | |
Currency and other | (119) | (142) | |
Benefit payments | (235) | (356) | |
Settlements | (2,590) | (34) | |
Fair value of plan assets at end of year | 3,508 | 5,914 | 5,567 |
Funded Status | (451) | (946) | |
Noncurrent asset—prepaid benefit cost | 16 | 6 | |
Current liability—accrued benefit cost | (11) | (13) | |
Noncurrent liability—accrued benefit cost | (456) | (939) | |
Net amount recognized | (451) | (946) | |
Other Postretirement Benefit Plans | |||
Service cost | 12 | 13 | 17 |
Interest cost | 32 | 35 | 32 |
Settlements | 0 | 0 | |
Other Postretirement Benefit Plans, Defined Benefit | |||
Benefit obligation at beginning of year | 788 | 761 | |
Service cost | 12 | 13 | |
Interest cost | 32 | 35 | |
Actuarial loss (gain) | (53) | 39 | |
Currency and other | (8) | (4) | |
Benefit payments from plans | 0 | 0 | |
Direct benefit payments | (54) | (56) | |
Benefit obligation at end of year | 717 | 788 | 761 |
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0 | 0 | |
Currency and other | 0 | 0 | |
Benefit payments | 0 | 0 | |
Settlements | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded Status | (717) | (788) | |
Noncurrent asset—prepaid benefit cost | 0 | 0 | |
Current liability—accrued benefit cost | (50) | (51) | |
Noncurrent liability—accrued benefit cost | (667) | (737) | |
Net amount recognized | $ (717) | $ (788) |
Employee Postretirement Benef59
Employee Postretirement Benefits (Principal Plans and All Other Pension Plans) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 3,847 | $ 6,696 |
Principal Plans | ||
Defined Benefit Plan, Benefit Obligation | 3,295 | 6,312 |
Defined Benefit Plan, Accumulated Benefit Obligation | 3,253 | 6,221 |
Fair value of plan assets | 3,019 | 5,559 |
All Other Pension Plans | ||
Defined Benefit Plan, Benefit Obligation | 664 | 548 |
Defined Benefit Plan, Accumulated Benefit Obligation | 594 | 475 |
Fair value of plan assets | $ 489 | $ 355 |
Employee Postretirement Benef60
Employee Postretirement Benefits (Pension Plans with an ABO in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value of plan assets | $ 1,696 | $ 4,111 |
ABO in Excess of Plan Assets | ||
PBO | 2,115 | 4,983 |
ABO | $ 2,096 | $ 4,908 |
Employee Postretirement Benef61
Employee Postretirement Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Defined Benefit Pension Plans | ||||
Service cost | $ 38 | $ 46 | $ 53 | |
Interest cost | 187 | 279 | 257 | |
Expected return on plan assets(a) | [1] | (215) | (332) | (331) |
Recognized net actuarial loss | 75 | 100 | 120 | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0 | (32) | |
Settlements | 1,357 | 20 | 1 | |
Other | (10) | (3) | 1 | |
Net periodic benefit cost | 1,432 | 110 | 69 | |
Other Postretirement Benefit Plans | ||||
Service cost | 12 | 13 | 17 | |
Interest cost | 32 | 35 | 32 | |
Expected return on plan assets(a) | 0 | 0 | 0 | |
Recognized net actuarial loss | 0 | 0 | 3 | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | |
Other | (1) | (1) | (2) | |
Net periodic benefit cost | $ 43 | $ 47 | $ 50 | |
[1] | The expected return on plan assets is determined by multiplying the fair value of plan assets at the remeasurement date, typically the prior year-end adjusted for estimated current year cash benefit payments and contributions, by the expected long-term rate of return. |
Employee Postretirement Benef62
Employee Postretirement Benefits (Weighted-Average Assumptions) (Details) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plans | ||||
Net cost, Discount rate | 3.86% | 4.66% | 4.04% | |
Net cost, Expected long-term return on plan assets | 5.21% | 5.98% | 6.26% | |
Net cost, Rate of compensation increase | 2.63% | 2.67% | 2.73% | |
Benefit obligations, Discount rate | 3.91% | 3.83% | ||
Benefit obligations, Rate of compensation increase | 2.32% | 2.63% | ||
Defined Benefit Pension Plans | Scenario, Forecast | ||||
Net cost, Discount rate | 3.91% | |||
Net cost, Expected long-term return on plan assets | 4.84% | |||
Net cost, Rate of compensation increase | 2.32% | |||
Other Postretirement Benefit Plans | ||||
Net cost, Discount rate | 4.28% | 4.97% | 3.97% | |
Net cost, Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% | |
Net cost, Rate of compensation increase | 0.00% | 0.00% | 0.00% | |
Benefit obligations, Discount rate | 4.59% | 4.28% | ||
Benefit obligations, Rate of compensation increase | 0.00% | 0.00% |
Employee Postretirement Benef63
Employee Postretirement Benefits (Pension Plan Assets of the Principal Plans Measured at fair value) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 3,847 | $ 6,696 | |
Defined Benefit Pension Plans | |||
Defined Benefit Plan, Benefit Obligation | 3,959 | 6,860 | $ 6,164 |
Fair value of plan assets | 3,508 | 5,914 | $ 5,567 |
Principal Plans | |||
Defined Benefit Plan, Benefit Obligation | 3,295 | 6,312 | |
Defined Benefit Plan, Accumulated Benefit Obligation | 3,253 | 6,221 | |
Fair value of plan assets | 3,019 | 5,559 | |
Principal Plans | Fair Value, Inputs, Level 1 | |||
Fair value of plan assets | 241 | 161 | |
Principal Plans | Fair Value, Inputs, Level 2 | |||
Fair value of plan assets | 2,778 | 5,398 | |
Principal Plans | Fair Value, Inputs, Level 3 | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | U.S. Equity | |||
Fair value of plan assets | 58 | ||
Principal Plans | U.S. Equity | Mutual and Pooled Funds | |||
Fair value of plan assets | 4 | ||
Principal Plans | U.S. Equity | Fair Value, Inputs, Level 1 | |||
Fair value of plan assets | 58 | ||
Principal Plans | U.S. Equity | Fair Value, Inputs, Level 1 | Mutual and Pooled Funds | |||
Fair value of plan assets | 4 | ||
Principal Plans | U.S. Equity | Fair Value, Inputs, Level 2 | |||
Fair value of plan assets | 0 | ||
Principal Plans | U.S. Equity | Fair Value, Inputs, Level 2 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | ||
Principal Plans | U.S. Equity | Fair Value, Inputs, Level 3 | |||
Fair value of plan assets | 0 | ||
Principal Plans | U.S. Equity | Fair Value, Inputs, Level 3 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | ||
Principal Plans | International Equity | |||
Fair value of plan assets | 30 | ||
Principal Plans | International Equity | Fair Value, Inputs, Level 1 | |||
Fair value of plan assets | 30 | ||
Principal Plans | International Equity | Fair Value, Inputs, Level 2 | |||
Fair value of plan assets | 0 | ||
Principal Plans | International Equity | Fair Value, Inputs, Level 3 | |||
Fair value of plan assets | 0 | ||
Principal Plans | Non-U.S. Equity | Mutual and Pooled Funds | |||
Fair value of plan assets | 67 | 106 | |
Principal Plans | Non-U.S. Equity | Fair Value, Inputs, Level 1 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | 1 | |
Principal Plans | Non-U.S. Equity | Fair Value, Inputs, Level 2 | Mutual and Pooled Funds | |||
Fair value of plan assets | 67 | 105 | |
Principal Plans | Non-U.S. Equity | Fair Value, Inputs, Level 3 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | International Bonds | Mutual and Pooled Funds | |||
Fair value of plan assets | 1,236 | 1,438 | |
Principal Plans | International Bonds | Fair Value, Inputs, Level 1 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | International Bonds | Fair Value, Inputs, Level 2 | Mutual and Pooled Funds | |||
Fair value of plan assets | 1,236 | 1,438 | |
Principal Plans | International Bonds | Fair Value, Inputs, Level 3 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | U.S. securitized fixed income | |||
Fair value of plan assets | 6 | ||
Principal Plans | U.S. securitized fixed income | Fair Value, Inputs, Level 1 | |||
Fair value of plan assets | 0 | ||
Principal Plans | U.S. securitized fixed income | Fair Value, Inputs, Level 2 | |||
Fair value of plan assets | 6 | ||
Principal Plans | U.S. securitized fixed income | Fair Value, Inputs, Level 3 | |||
Fair value of plan assets | 0 | ||
Principal Plans | Cash and Cash Equivalents | |||
Fair value of plan assets | 14 | 28 | |
Principal Plans | Cash and Cash Equivalents | Mutual and Pooled Funds | |||
Fair value of plan assets | 34 | 175 | |
Principal Plans | Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | |||
Fair value of plan assets | 12 | 28 | |
Principal Plans | Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | 9 | |
Principal Plans | Cash and Cash Equivalents | Fair Value, Inputs, Level 2 | |||
Fair value of plan assets | 2 | 0 | |
Principal Plans | Cash and Cash Equivalents | Fair Value, Inputs, Level 2 | Mutual and Pooled Funds | |||
Fair value of plan assets | 34 | 166 | |
Principal Plans | Cash and Cash Equivalents | Fair Value, Inputs, Level 3 | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | Cash and Cash Equivalents | Fair Value, Inputs, Level 3 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | U.S. government and municipals | |||
Fair value of plan assets | 157 | 252 | |
Principal Plans | U.S. government and municipals | Mutual and Pooled Funds | |||
Fair value of plan assets | 149 | ||
Principal Plans | U.S. government and municipals | Fair Value, Inputs, Level 1 | |||
Fair value of plan assets | 141 | 71 | |
Principal Plans | U.S. government and municipals | Fair Value, Inputs, Level 1 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | ||
Principal Plans | U.S. government and municipals | Fair Value, Inputs, Level 2 | |||
Fair value of plan assets | 16 | 181 | |
Principal Plans | U.S. government and municipals | Fair Value, Inputs, Level 2 | Mutual and Pooled Funds | |||
Fair value of plan assets | 149 | ||
Principal Plans | U.S. government and municipals | Fair Value, Inputs, Level 3 | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | U.S. government and municipals | Fair Value, Inputs, Level 3 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | ||
Principal Plans | U.S. corporate debt | |||
Fair value of plan assets | 21 | 2,167 | |
Principal Plans | U.S. corporate debt | Mutual and Pooled Funds | |||
Fair value of plan assets | 623 | 149 | |
Principal Plans | U.S. corporate debt | Fair Value, Inputs, Level 1 | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | U.S. corporate debt | Fair Value, Inputs, Level 1 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | U.S. corporate debt | Fair Value, Inputs, Level 2 | |||
Fair value of plan assets | 21 | 2,167 | |
Principal Plans | U.S. corporate debt | Fair Value, Inputs, Level 2 | Mutual and Pooled Funds | |||
Fair value of plan assets | 623 | 149 | |
Principal Plans | U.S. corporate debt | Fair Value, Inputs, Level 3 | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | U.S. corporate debt | Fair Value, Inputs, Level 3 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | Multi-sector | Mutual and Pooled Funds | |||
Fair value of plan assets | 1 | ||
Principal Plans | Multi-sector | Fair Value, Inputs, Level 1 | Mutual and Pooled Funds | |||
Fair value of plan assets | 1 | ||
Principal Plans | Multi-sector | Fair Value, Inputs, Level 2 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | ||
Principal Plans | Multi-sector | Fair Value, Inputs, Level 3 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | ||
Principal Plans | Global equity | Mutual and Pooled Funds | |||
Fair value of plan assets | 630 | 1,186 | |
Principal Plans | Global equity | Fair Value, Inputs, Level 1 | Mutual and Pooled Funds | |||
Fair value of plan assets | 0 | 0 | |
Principal Plans | Global equity | Fair Value, Inputs, Level 2 | Mutual and Pooled Funds | |||
Fair value of plan assets | 630 | 1,186 | |
Principal Plans | Global equity | Fair Value, Inputs, Level 3 | Mutual and Pooled Funds | |||
Fair value of plan assets | $ 0 | 0 | |
Principal Plans | Insurance Contract | |||
Fair value of plan assets | 29 | ||
Principal Plans | Insurance Contract | Fair Value, Inputs, Level 3 | |||
Fair value of plan assets | 0 | ||
Principal Plans | Equity - Held Through Mutual and Pooled Funds | Fair Value, Inputs, Level 1 | |||
Fair value of plan assets | 29 | ||
Principal Plans | Equity - Held Through Mutual and Pooled Funds | Fair Value, Inputs, Level 2 | |||
Fair value of plan assets | 0 | ||
U.S. Equity | Equity - Assets Held Directly | |||
Fair value of plan assets | 18 | ||
U.S. Equity | Equity - Assets Held Directly | Fair Value, Inputs, Level 1 | |||
Fair value of plan assets | 18 | ||
U.S. Equity | Equity - Assets Held Directly | Fair Value, Inputs, Level 2 | |||
Fair value of plan assets | 0 | ||
U.S. Equity | Equity - Assets Held Directly | Fair Value, Inputs, Level 3 | |||
Fair value of plan assets | $ 0 |
Employee Postretirement Benef64
Employee Postretirement Benefits (Cash Contributions to its Pension Trusts) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan, Expected Future Benefit Payments in Year One | $ 217 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 234 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 238 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 242 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | 251 |
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter | 1,284 |
Other Postretirement Benefit Plans | |
Defined Benefit Plan, Expected Future Benefit Payments in Year One | 51 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Two | 53 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Three | 54 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Four | 56 |
Defined Benefit Plan, Expected Future Benefit Payments in Year Five | 58 |
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter | $ 291 |
Employee Postretirement Benef65
Employee Postretirement Benefits (Defined Contribution Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Costs charged to expense for defined contribution pension plans | $ 107 | $ 121 | $ 117 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narratives) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Noncontrolling Interest | |
Unrecognized net actuarial loss | $ 1,061 |
Unrecognized net prior service credit | 46 |
Defined Benefit Plan, Amortization of Net Gains (Losses) | 52 |
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | $ 10 |
Israel | |
Noncontrolling Interest | |
Noncontrolling interest acquired | 49.90% |
Payment to noncontrolling interest acquired | $ 151 |
Kimberly-Clark Tuketim Mallari Sanayi ve Ticaret A.s. | |
Noncontrolling Interest | |
Noncontrolling interest acquired | 49.90% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income, Beginning Balance | $ (3,312) | ||||
Net current period other comprehensive income (loss) | 25 | $ (1,090) | $ (175) | ||
Spin-off of health care business | 0 | 9 | 0 | ||
Accumulated Other Comprehensive Income, Ending Balance | (3,278) | (3,312) | |||
Unrealized Translation | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income, Beginning Balance | (1,335) | (525) | |||
Other comprehensive income (loss) before reclassifications | (942) | (819) | |||
(Income) loss reclassified from AOCI | 37 | [1] | 0 | ||
Net current period other comprehensive income (loss) | (905) | (819) | |||
Adjustments to Accumulated Other Comprehensive Income (Loss), Decrease from Purchase of Noncontrolling Interest | (12) | ||||
Spin-off of health care business | 9 | ||||
Accumulated Other Comprehensive Income, Ending Balance | (2,252) | (1,335) | (525) | ||
Other Postretirment Benefit Plans | Defined Benefit Pension Plans | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income, Beginning Balance | (1,924) | (1,668) | |||
Other comprehensive income (loss) before reclassifications | 39 | (313) | |||
(Income) loss reclassified from AOCI | [2] | 872 | 57 | ||
Net current period other comprehensive income (loss) | 911 | (256) | |||
Adjustments to Accumulated Other Comprehensive Income (Loss), Decrease from Purchase of Noncontrolling Interest | 0 | ||||
Spin-off of health care business | 0 | ||||
Accumulated Other Comprehensive Income, Ending Balance | (1,013) | (1,924) | (1,668) | ||
Other Postretirment Benefit Plans | Other Postretirement Benefit Plans | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income, Beginning Balance | (37) | (15) | |||
Other comprehensive income (loss) before reclassifications | 35 | (23) | |||
(Income) loss reclassified from AOCI | [2] | (1) | 1 | ||
Net current period other comprehensive income (loss) | 34 | (22) | |||
Adjustments to Accumulated Other Comprehensive Income (Loss), Decrease from Purchase of Noncontrolling Interest | 0 | ||||
Spin-off of health care business | 0 | ||||
Accumulated Other Comprehensive Income, Ending Balance | (3) | (37) | (15) | ||
Cash Flow Hedges and Other | |||||
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income, Beginning Balance | (16) | (34) | |||
Other comprehensive income (loss) before reclassifications | 53 | 29 | |||
(Income) loss reclassified from AOCI | (48) | (11) | |||
Net current period other comprehensive income (loss) | 5 | 18 | |||
Spin-off of health care business | 0 | ||||
Accumulated Other Comprehensive Income, Ending Balance | (10) | $ (16) | $ (34) | ||
Proceeds from Noncontrolling Interests | $ 1 | ||||
[1] | Included in other (income) and expense, net as part of the charge related to the deconsolidation of our Venezuelan operations at December 31, 2015 (see Note 1). | ||||
[2] | Included in computation of net periodic pension and postretirement benefits costs (see Note 9) |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Components of Stockholders' Equity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) | |||
Unrealized translation | $ (922) | $ (835) | $ (494) |
Recognition of effective portion of hedges | 66 | 18 | 37 |
Amortization included in net income | (53) | (5) | (10) |
Cash flow hedges and other, tax effect | (1) | 3 | (13) |
Cash flow hedges and other, net of tax | 5 | 18 | 18 |
Spin-off of health care business | 0 | 9 | 0 |
Change in AOCI | 34 | (1,070) | (183) |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | (1,357) | (20) | (1) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | (547) | 167 | (176) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | 911 | (256) | 260 |
Other Postretirement Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 0 | 0 | 0 |
Other comprehensive income (loss), before tax | 34 | (22) | 38 |
Tax effect | (21) | 14 | (24) |
Attributable to Kimberly-Clark | |||
Accumulated Other Comprehensive Income (Loss) | |||
Unrealized translation, before tax | (882) | (826) | (495) |
Unrealized translation, tax effect | (23) | 7 | (4) |
Unrealized translation | (905) | (819) | (499) |
Unrecognized net actuarial loss and transition amount | Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Funded status recognition | (4) | (624) | 356 |
Amortization included in net periodic benefit cost | 75 | 100 | 120 |
Currency and other | (42) | (69) | 8 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | (1,468) | 455 | (468) |
Unrecognized net actuarial loss and transition amount | Other Postretirement Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Other comprehensive income (loss), before tax | 59 | (36) | 65 |
Unrecognized prior service cost | Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Currency and other | (2) | (3) | (1) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | (10) | 32 | (32) |
Funded status recognition | 4 | 42 | 0 |
Amortization included in net periodic benefit cost | (12) | (7) | (31) |
Unrecognized prior service cost | Other Postretirement Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Other comprehensive income (loss), before tax | (4) | 0 | (3) |
Cash Flow Hedges and Other | |||
Accumulated Other Comprehensive Income (Loss) | |||
Currency and other | 7 | (2) | (4) |
Spin-off of health care business | 0 | ||
Other (Income) And Expense, Net | |||
Accumulated Other Comprehensive Income (Loss) | |||
Proceeds from Noncontrolling Interests | (11) | 0 | 0 |
Other (Income) And Expense, Net | Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ 1,355 | $ 0 | $ 0 |
Stockholders' Equity Effect of
Stockholders' Equity Effect of Change in Ownership (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Net Income (Loss) Attributable to Parent | $ 1,013 | $ 1,526 | $ 2,142 |
Adjustments to Additional Paid in Capital, Decrease from Purchase of Noncontrolling Interests | (94) | ||
Stockholders' Equity, Change in Net Income and Transfers to Noncontolling Interest | $ 919 |
Leases and Commitments (Narrati
Leases and Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases and Commitments | |||
Consolidated rental expense | $ 279 | $ 303 | $ 316 |
2,016 | 698 | ||
2,017 | 170 | ||
2,018 | 139 | ||
2,019 | 144 | ||
2,020 | $ 156 |
Leases and Commitments (Future
Leases and Commitments (Future Minimum Obligations under Operating Leases) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Leases and Commitments [Line Items] | |
2,016 | $ 142 |
2,017 | 115 |
2,018 | 86 |
2,019 | 67 |
2,020 | 53 |
Thereafter | 82 |
Future minimum obligations | $ 545 |
Objectives and Strategies for72
Objectives and Strategies for Using Derivatives (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair value hedge ineffectiveness is immaterial assertion | Fair value hedges resulted in no significant ineffectiveness in each of the three years ended December 31, 2015 | ||
Gain from hedged firm commitment not qualifying as fair value hedge | $ 0 | ||
Cash flow hedge ineffectiveness is immaterial assertion | Cash flow hedges resulted in no significant ineffectiveness in each of the three years ended December 31, 2015 | ||
Gains or losses reclassified into earnings resulting from discontinuance of cash flow hedges | $ 0 | ||
Losses on undesignated foreign exchange hedging instruments recognized in other (income) and expense | 188 | $ 192 | $ 74 |
Fair Value Hedging | |||
Aggregate notional value | $ 375 | ||
Cash Flow Hedging | |||
Maximum maturity of cash flow hedges | Dec. 1, 2018 | ||
Not Designated as Hedging Instrument | |||
Aggregate notional value | $ 2,400 | ||
Foreign Exchange Contract | Cash Flow Hedging | |||
Aggregate notional value | $ 815 |
Objectives and Strategies for73
Objectives and Strategies for Using Derivatives Objectives and Strategies for Using Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative | ||
Assets | $ 56 | $ 54 |
Liabilities | 42 | 112 |
Foreign Exchange Contract | ||
Derivative | ||
Assets | 56 | 54 |
Liabilities | 27 | 102 |
Commodity Contract | ||
Derivative | ||
Assets | 0 | 0 |
Liabilities | $ 15 | $ 10 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation Allowance | ||
Income tax loss carryforwards | $ 800 | |
Income tax loss carryforwards expire amount | $ 357 | |
Income tax loss carryforwards expiration dates | 2016 through 2035 | |
Remaining amount of loss carryforwards that has no expiration date | $ 458 | |
Unremitted earnings | 8,800 | |
Unrecognized tax benefits | 307 | |
Total accrued penalties and net accrued interest | 40 | $ 28 |
Aggregate resolution of uncertainties | $ 170 | |
Year federal income tax returns have been audited | 2,011 | |
Administrative appeals or litigation | 2004, 2005, 2007, 2010 and 2011 | |
State and Local Jurisdiction [Member] | ||
Valuation Allowance | ||
Statute for potential adjustments, period | 3 to 5 years | |
Pending refund actions, period | two |
Income Taxes (Analysis of the P
Income Taxes (Analysis of the Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 223 | $ 350 | $ 292 |
State | 56 | 48 | 99 |
Other countries | 394 | 387 | 286 |
Total | 673 | 785 | 677 |
United States | (180) | 67 | 85 |
State | (74) | (16) | 14 |
Other countries | (1) | 20 | 52 |
Total | (255) | 71 | 151 |
Total provision for income taxes | $ 418 | $ 856 | $ 828 |
Income Taxes (Income before Inc
Income Taxes (Income before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 451 | $ 1,571 | $ 1,557 |
Other countries | 884 | 684 | 1,084 |
Income From Continuing Operations Before Income Taxes and Equity Interests | $ 1,335 | $ 2,255 | $ 2,641 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets (Liabilities)) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Pension and other postretirement benefits | $ 682 | $ 883 |
Tax credits and loss carryforwards | 443 | 538 |
Other | 599 | 667 |
Deferred Tax Assets, Gross | 1,724 | 2,088 |
Valuation allowance | (274) | (215) |
Total deferred tax assets | 1,450 | 1,873 |
Pension and other postretirement benefits | 254 | 260 |
Property, plant and equipment, net | 1,118 | 1,162 |
Investments in subsidiaries | 186 | 223 |
Other | 281 | 339 |
Total deferred tax liabilities | 1,839 | 1,984 |
Net deferred tax assets (liabilities) | $ (389) | $ (111) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Tax Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ||||
Tax Adjustments, UTP | $ 49 | |||
Tax at U.S. statutory rate applied to income before income taxes | 35.00% | 35.00% | 35.00% | |
State income taxes, net of federal tax benefit | (0.90%) | 0.70% | 2.70% | |
Statutory rates other than U.S. statutory rate | (6.90%) | (3.00%) | (3.00%) | |
Venezuela balance sheet remeasurement and inflationary impact | 4.50% | 4.90% | (0.80%) | |
Effective Income Tax Rate Reconciliation, UTP Adjustment | [1] | 3.70% | 0.00% | 0.00% |
Effective Income Tax Rate Reconcilliation, Tax Credit, Routine Incentives | [2] | (7.40%) | (3.60%) | (3.90%) |
Effective incomE Tax Rate Reconcilliation, Tax Credit, Foreign Income Taxes | [2] | 5.10% | 3.60% | 1.60% |
Other-net | [3] | (1.80%) | 0.40% | (0.20%) |
Effective income tax rate | 31.30% | 38.00% | 31.40% | |
[1] | In the fourth quarter of 2015, we updated our assessment of uncertain tax positions for certain international operations and as a result we recorded an immaterial income tax charge of $49 related to prior years. | |||
[2] | In 2015, we aggregated certain items to provide additional information on impacts to our effective tax rate. | |||
[3] | Other - net is composed of numerous items, none of which is greater than 1.75 percent of income before income taxes. |
Income Taxes (Unrecognized Inco
Income Taxes (Unrecognized Income Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at January 1 | $ 416 | $ 473 | $ 435 |
Gross increases for tax positions of prior years | 80 | 36 | 73 |
Gross decreases for tax positions of prior years | (61) | (91) | (31) |
Gross increases for tax positions of the current year | 59 | 87 | 37 |
Settlements | (63) | (77) | (35) |
Other | (25) | (12) | (6) |
Balance at December 31 | $ 406 | $ 416 | $ 473 |
Income Taxes (Remaining Tax Yea
Income Taxes (Remaining Tax Years Subject to Examination) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | United States | |
Income Tax Examination | |
Tax years subject to examination | 2,012 |
Minimum | United Kingdom | |
Income Tax Examination | |
Tax years subject to examination | 2,012 |
Minimum | Brazil | |
Income Tax Examination | |
Tax years subject to examination | 2,010 |
Minimum | Korea | |
Income Tax Examination | |
Tax years subject to examination | 2,014 |
Minimum | China | |
Income Tax Examination | |
Tax years subject to examination | 2,006 |
Maximum | United States | |
Income Tax Examination | |
Tax years subject to examination | 2,015 |
Maximum | United Kingdom | |
Income Tax Examination | |
Tax years subject to examination | 2,015 |
Maximum | Brazil | |
Income Tax Examination | |
Tax years subject to examination | 2,015 |
Maximum | China | |
Income Tax Examination | |
Tax years subject to examination | 2,015 |
Earnings Per Share (Average Com
Earnings Per Share (Average Common shares Outstanding Basic and Diluted) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Basic | 363.8 | 374.5 | 384 |
Dilutive effect of stock options and restricted share unit awards | 2.5 | 2.9 | 3.3 |
Diluted | 366.3 | 377.4 | 387.3 |
Earnings Per Share (Narratives)
Earnings Per Share (Narratives) (Details) - shares shares in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Earnings Per Share [Abstract] | |||
Common shares outstanding | 360.9 | 365.3 | 380.8 |
Business Segment and Geograph83
Business Segment and Geographic Data Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Charges related to Venezuelan Operations | $ (462) | $ (36) | |||
Other Operating Income (Expense), Net | $ (1,568) | $ (453) | [1],[2] | $ (7) | [1],[2] |
Net Sales Percentage to One Customer | Wal-Mart Stores, Inc. | |||||
Net sales to Wal-Mart Stores, percent | 14.00% | 13.00% | 13.00% | ||
K-C Venezuela | |||||
Charges related to Venezuelan Operations | $ (45) | $ (462) | |||
Dispute in Middle East | |||||
Other Operating Income (Expense), Net | (35) | ||||
Corporate and Other [Member] | European Strategic Changes | |||||
Restructuring Charges | 33 | $ 76 | |||
Other Income | European Strategic Changes | |||||
Restructuring Charges | $ 5 | ||||
Other Income | K-C Venezuela | |||||
Charges related to Venezuelan Operations | (40) | (421) | |||
Before Tax | 2014 Organization Restructuring | |||||
Restructuring Charges | $ 63 | $ 133 | |||
[1] | Other (income) and expense, net for 2015 and 2014 include charges of $40 and $421, respectively, related to the remeasurement of the Venezuelan balance sheet. In addition, 2015 includes charges of $108 for the deconsolidation of our Venezuelan operations and $1,358 for charges related to pension settlements and 2014 includes a charge of $35 related to a regulatory dispute in the Middle East. The results for 2013 include a balance sheet remeasurement charge of $36 due to a devaluation of the Venezuelan bolivar and a charge of $5 for European strategic changes. | ||||
[2] | Segment operating profit excludes other (income) and expense, net and income and expenses not associated with the business segments. |
Business Segment and Geograph84
Business Segment and Geographic Data Information (Information Concerning Consolidated Operations by Business Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Net Sales | $ 18,591 | $ 19,724 | $ 19,561 | |||
Operating Profit | 1,613 | 2,521 | 2,903 | |||
Depreciation and Amortization | 746 | 862 | 863 | |||
Assets | 14,842 | 15,526 | 18,919 | |||
Capital Spending | 1,056 | 1,039 | 953 | |||
Charge for Venezuelan Balance Sheet Remeasurement | 462 | 36 | ||||
Other Operating Income (Expense), Net | 1,568 | 453 | [1],[2] | 7 | [1],[2] | |
United States | ||||||
Net Sales | 8,819 | 8,573 | 8,557 | |||
Personal Care | ||||||
Net Sales | [3] | 9,204 | 9,635 | 9,536 | ||
Operating Profit | [2] | 1,885 | 1,803 | 1,698 | ||
Depreciation and Amortization | 340 | 359 | 332 | |||
Assets | 6,330 | 6,373 | 6,623 | |||
Capital Spending | 590 | 501 | 461 | |||
Consumer Tissue | ||||||
Net Sales | [3] | 6,121 | 6,645 | 6,637 | ||
Operating Profit | [2] | 1,073 | 1,062 | 988 | ||
Depreciation and Amortization | 282 | 299 | 318 | |||
Assets | 5,050 | 5,229 | 5,483 | |||
Capital Spending | 344 | 314 | 328 | |||
K-C Professional and Other | ||||||
Net Sales | [3] | 3,219 | 3,388 | 3,323 | ||
Operating Profit | [2] | 590 | 604 | 605 | ||
Depreciation and Amortization | 121 | 132 | 138 | |||
Assets | 2,264 | 2,339 | 2,431 | |||
Capital Spending | 116 | 143 | 118 | |||
Corporate and Other | ||||||
Net Sales | [3] | 47 | 56 | 65 | ||
Operating Profit | [2],[4] | (367) | (495) | (381) | ||
Depreciation and Amortization | 3 | 3 | 4 | |||
Assets | 1,198 | 1,585 | 2,012 | |||
Capital Spending | 6 | 6 | 2 | |||
Defined Benefit Plan, Settlements, Plan Assets | 1,358 | |||||
Ongoing Operations | ||||||
Depreciation and Amortization | 746 | 793 | 792 | |||
Assets | 14,842 | 15,526 | 16,549 | |||
Capital Spending | 1,056 | 964 | 909 | |||
Health Care | ||||||
Depreciation and Amortization | 0 | 69 | 71 | |||
Assets | 0 | 0 | 2,370 | |||
Capital Spending | 0 | 75 | 44 | |||
K-C Venezuela | ||||||
Charge for Venezuelan Balance Sheet Remeasurement | 45 | 462 | ||||
K-C Turkey | Corporate and Other | ||||||
Charges for workforce reductions and other exit costs | 23 | |||||
Dispute in Middle East | ||||||
Other Operating Income (Expense), Net | 35 | |||||
Before Tax | 2014 Organization Restructuring | ||||||
Charges for workforce reductions and other exit costs | 63 | 133 | ||||
Cost of Sales | K-C Venezuela | ||||||
Charge for Venezuelan Balance Sheet Remeasurement | 5 | 41 | ||||
Cost of Sales | 2014 Organization Restructuring | ||||||
Charges for workforce reductions and other exit costs | 23 | 40 | ||||
Other Income | K-C Venezuela | ||||||
Charge for Venezuelan Balance Sheet Remeasurement | 40 | 421 | ||||
Charge for Devaluation Under Highly Inflationary Accounting | 36 | |||||
Other Income | European Strategic Changes | ||||||
Charges for workforce reductions and other exit costs | 5 | |||||
Corporate and Other | European Strategic Changes | ||||||
Charges for workforce reductions and other exit costs | $ 33 | $ 76 | ||||
Before Tax | K-C Venezuela | ||||||
Deconsolidation, Gain (Loss), Amount | $ (108) | |||||
[1] | Other (income) and expense, net for 2015 and 2014 include charges of $40 and $421, respectively, related to the remeasurement of the Venezuelan balance sheet. In addition, 2015 includes charges of $108 for the deconsolidation of our Venezuelan operations and $1,358 for charges related to pension settlements and 2014 includes a charge of $35 related to a regulatory dispute in the Middle East. The results for 2013 include a balance sheet remeasurement charge of $36 due to a devaluation of the Venezuelan bolivar and a charge of $5 for European strategic changes. | |||||
[2] | Segment operating profit excludes other (income) and expense, net and income and expenses not associated with the business segments. | |||||
[3] | Net sales in the United States to third parties totaled $8,819, $8,573 and $8,557 in 2015, 2014 and 2013, respectively. | |||||
[4] | Corporate & Other includes charges related to the 2014 Organization Restructuring of $63 and $133, and $5 and $41 related to the remeasurement of the Venezuelan balance sheet, in 2015 and 2014, respectively. Corporate & Other also includes $23 for restructuring in Turkey in 2015, and $33 and $76 related to European strategic changes in 2014 and 2013, respectively |
Business Segment and Geograph85
Business Segment and Geographic Data Information (Sales of Principal Products) (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales of Principal Products | $ 18.6 | $ 19.7 | $ 19.6 |
Consumer Tissue Products | |||
Sales of Principal Products | 6.1 | 6.6 | 6.6 |
Baby and Child Care Products | |||
Sales of Principal Products | 6.6 | 7 | 7 |
Away from Home Professional Products | |||
Sales of Principal Products | 3.2 | 3.4 | 3.3 |
All Other | |||
Sales of Principal Products | $ 2.7 | $ 2.7 | $ 2.7 |
Supplemental Data (Narrative) (
Supplemental Data (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments | ||
Property, Plant and Equipment, Net | $ 7,104 | $ 7,359 |
Investments in Equity Companies | 247 | 257 |
Retained Earnings, Undistributed Earnings from Equity Method Investees | 1,000 | |
United States | ||
Schedule of Equity Method Investments | ||
Property, Plant and Equipment, Net | $ 3,716 | $ 3,685 |
Kimberly-Clark de Mexico, S.A.B. de C.V. and subsidiaries | ||
Schedule of Equity Method Investments | ||
Equity Method Investment, Ownership Percentage | 47.90% | |
Investments in Equity Companies | $ 179 | |
Equity Method Investments, Fair Value Disclosure | $ 2,900 |
Supplemental Data (Supplemental
Supplemental Data (Supplemental Income Statement Data) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Data | |||
Advertising expense | $ 710 | $ 767 | $ 769 |
Research expense | $ 324 | $ 368 | $ 333 |
Supplemental Data Supplemental
Supplemental Data Supplemental Data (Equity Method Investment Data) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Sales | $ 2,255 | $ 2,452 | $ 2,638 |
Gross Profit | 773 | 781 | 950 |
Operating Profit | 497 | 485 | 642 |
Net Income | 308 | 304 | 426 |
Corporation's Share of Net Income | 149 | 146 | 205 |
Current Assets | 1,103 | 1,016 | 1,197 |
Non- Current Assets | 993 | 1,040 | 1,124 |
Current Liabilities | 508 | 690 | 847 |
Non- Current Liabilities | 1,068 | 963 | 845 |
Stockholders' Equity | $ 520 | $ 403 | $ 629 |
Supplemental Data (Summary of A
Supplemental Data (Summary of Accounts Receivable, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Supplemental Data (Millions of dollars) [Abstract] | ||
From customers | $ 2,017 | $ 2,079 |
Other | 329 | 210 |
Less allowance for doubtful accounts and sales discounts | (65) | (66) |
Total | $ 2,281 | $ 2,223 |
Supplemental Data (Summary of I
Supplemental Data (Summary of Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory | ||
Raw materials | $ 397 | $ 426 |
Work in process | 203 | 215 |
Finished goods | 1,214 | 1,183 |
Supplies and other | 278 | 288 |
Gross inventories | 2,092 | 2,112 |
Excess of FIFO or weighted-average cost over LIFO cost | (183) | (220) |
Total | 1,909 | 1,892 |
LIFO | ||
Inventory | ||
Raw materials | 100 | 104 |
Work in process | 110 | 120 |
Finished goods | 525 | 511 |
Supplies and other | 0 | 0 |
Gross inventories | 735 | 735 |
Excess of FIFO or weighted-average cost over LIFO cost | (183) | (220) |
Total | 552 | 515 |
Non- LIFO | ||
Inventory | ||
Raw materials | 297 | 322 |
Work in process | 93 | 95 |
Finished goods | 689 | 672 |
Supplies and other | 278 | 288 |
Gross inventories | 1,357 | 1,377 |
Excess of FIFO or weighted-average cost over LIFO cost | 0 | 0 |
Total | $ 1,357 | $ 1,377 |
Supplemental Data (Summary of P
Supplemental Data (Summary of Property, Plant and Equipment, Net) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Supplemental Data | ||
Land | $ 164 | $ 177 |
Buildings | 2,537 | 2,574 |
Machinery and equipment | 13,393 | 13,437 |
Construction in progress | 453 | 591 |
Total before accumulated depreciation | 16,547 | 16,779 |
Less accumulated depreciation | (9,443) | (9,420) |
Total | $ 7,104 | $ 7,359 |
Supplemental Data (Summary of92
Supplemental Data (Summary of Accrued Expenses) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Supplemental Data | ||
Accrued advertising and promotion | $ 339 | $ 326 |
Accrued salaries and wages | 392 | 415 |
Accrued rebates | 229 | 258 |
Accrued taxes - income and other | 329 | 330 |
Derivatives | 36 | 113 |
Other | 425 | 532 |
Total | $ 1,750 | $ 1,974 |
Supplemental Data (Summary of C
Supplemental Data (Summary of Cash Flow Effects of Decrease (Increase) in Operating Working Capital) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts receivable | $ 60 | $ 267 | $ 4 |
Inventories | (28) | 12 | 100 |
Trade accounts payable | 44 | (30) | 128 |
Accrued expenses | (110) | (120) | (177) |
Accrued income taxes | (81) | (159) | (90) |
Derivatives | (63) | 103 | 5 |
Currency and other | (267) | (249) | (128) |
Total | $ (445) | $ (176) | $ (158) |
Supplemental Data (Other Cash F
Supplemental Data (Other Cash Flow Data and Interest Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Data | |||
Interest paid | $ 308 | $ 300 | $ 307 |
Income taxes paid | $ 695 | $ 926 | $ 776 |
Valuation and Qualifying Acco95
Valuation and Qualifying Accounts (Schedule of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Allowance for Doubtful Accounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 51 | $ 60 | ||
Charged to Costs and Expenses | $ 12 | 13 | 0 | |
Charged to Other Accounts | [1] | (10) | (7) | (4) |
Deductions | [2] | 2 | 7 | 5 |
Balance at End of Period | 50 | 50 | 51 | |
Allowances for Sales Discounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 20 | 20 | ||
Charged to Costs and Expenses | 256 | 265 | 275 | |
Charged to Other Accounts | [1] | (1) | (1) | (1) |
Deductions | [3] | 256 | 268 | 274 |
Balance at End of Period | 15 | 16 | 20 | |
Deferred Taxes [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 197 | 215 | ||
Charged to Costs and Expenses | 78 | 30 | (11) | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | [4] | 19 | 12 | 7 |
Balance at End of Period | $ 274 | $ 215 | $ 197 | |
[1] | Includes bad debt recoveries and the effects of changes in foreign currency exchange rates. | |||
[2] | Primarily uncollectible receivables written off. | |||
[3] | Sales discounts allowed. | |||
[4] | Represents the net currency effects of translating valuation allowances at current rates of exchange. |