Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 16, 2018 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 | |
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 | |
Entity Common Stock, Shares Outstanding | 349,329,075 |
Consolidated Income Statement
Consolidated Income Statement - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Statement [Abstract] | |||
Net Sales | $ 4,731 | $ 4,504 | |
Cost of products sold | 3,407 | 2,844 | |
Gross Profit | 1,324 | 1,660 | |
Marketing, research and general expenses | 1,079 | 807 | |
Other (income) and expense, net | [1] | (2) | 5 |
Operating Profit | 247 | 848 | |
Nonoperating expense | (9) | (14) | |
Interest income | 2 | 2 | |
Interest expense | (66) | (83) | |
Income Before Income Taxes and Equity Interests | 174 | 753 | |
Provision for income taxes | (104) | (207) | |
Income Before Equity Interests | 70 | 546 | |
Share of net income of equity companies | 27 | 29 | |
Net Income | 97 | 575 | |
Net income attributable to noncontrolling interests | (4) | (12) | |
Net Income Attributable to Kimberly-Clark Corporation | $ 93 | $ 563 | |
Per Share Basis | |||
Basic | $ 0.27 | $ 1.58 | |
Diluted | 0.26 | 1.57 | |
Cash Dividends Declared | $ 1 | $ 0.97 | |
[1] | Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including charges related to the 2018 Global Restructuring Program. The first quarter 2018 restructuring charges related to the business segments were $314 in personal care, $141 in consumer tissue and $95 in K-C Professional. |
Consolidated Statement Of Compr
Consolidated Statement Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 97 | $ 575 |
Other Comprehensive Income, Net of Tax | ||
Unrealized currency translation adjustments | 117 | 267 |
Employee postretirement benefits | 0 | (2) |
Other | (1) | (16) |
Total Other Comprehensive Income, Net of Tax | 116 | 249 |
Comprehensive Income | 213 | 824 |
Comprehensive income attributable to noncontrolling interests | (5) | (31) |
Comprehensive Income Attributable to Kimberly-Clark Corporation | $ 208 | $ 793 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 626 | $ 616 |
Accounts receivable, net | 2,470 | 2,315 |
Inventories | 1,778 | 1,790 |
Other current assets | 498 | 490 |
Total Current Assets | 5,372 | 5,211 |
Property, Plant and Equipment, Net | 7,328 | 7,436 |
Investments in Equity Companies | 260 | 233 |
Goodwill | 1,576 | 1,576 |
Other Assets | 767 | 695 |
TOTAL ASSETS | 15,303 | 15,151 |
Current Liabilities | ||
Debt payable within one year | 1,599 | 953 |
Trade accounts payable | 2,826 | 2,834 |
Accrued expenses | 1,899 | 1,730 |
Dividends payable | 350 | 341 |
Total Current Liabilities | 6,674 | 5,858 |
Long-term Debt | 6,081 | 6,472 |
Noncurrent Employee Benefits | 1,152 | 1,184 |
Deferred Income Taxes | 421 | 395 |
Other Liabilities | 359 | 299 |
Redeemable Preferred Securities of Subsidiaries | 61 | 61 |
Stockholders' Equity | ||
Kimberly-Clark Corporation | 317 | 629 |
Noncontrolling Interests | 238 | 253 |
Total Stockholders' Equity | 555 | 882 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 15,303 | $ 15,151 |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statement - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities | ||
Net income | $ 97 | $ 575 |
Depreciation and amortization | 211 | 178 |
Asset impairments | 74 | 0 |
Stock-based compensation | 18 | 20 |
Deferred income taxes | (27) | (25) |
Net losses on asset dispositions | 36 | 5 |
Equity companies' earnings in excess of dividends paid | (27) | (26) |
Operating working capital | 103 | (264) |
Postretirement benefits | (41) | (21) |
Other | 98 | (6) |
Cash Provided by Operations | 542 | 436 |
Investing Activities | ||
Capital spending | (189) | (215) |
Investments in time deposits | (83) | (37) |
Maturities of time deposits | 19 | 70 |
Other | (3) | 4 |
Cash Used for Investing | (256) | (178) |
Financing Activities | ||
Cash dividends paid | (341) | (329) |
Change in short-term debt | 249 | 196 |
Debt repayments | (2) | (8) |
Proceeds from exercise of stock options | 14 | 78 |
Acquisitions of common stock for the treasury | (197) | (295) |
Other | (6) | (9) |
Cash Used for Financing | (283) | (367) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 7 | 21 |
Change in Cash and Cash Equivalents | 10 | (88) |
Cash and Cash Equivalents - Beginning of Period | 616 | 923 |
Cash and Cash Equivalents - End of Period | $ 626 | $ 835 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair presentation of the results for the periods presented have been reflected. Dollar amounts are reported in millions, except per share dollar amounts, unless otherwise noted. For further information, refer to the consolidated financial statements and footnotes included in our Annual Report on Form 10‑K for the year ended December 31, 2017 . The terms "Corporation," "Kimberly-Clark," "K-C," "we," "our" and "us" refer to Kimberly-Clark Corporation and its consolidated subsidiaries. In prior years, we followed an accounting practice whereby costs associated with sales of K-C Professional dispensers were classified as a reduction in revenue, similar to sales incentives. Effective January 1, 2018, we changed this practice and now classify these costs as cost of products sold. This change resulted in an immaterial increase in net sales and cost of products sold and all applicable amounts included in this filing have been recast accordingly. Recently Adopted Accounting Standards The Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2017-07, Compensation-Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The standard requires that an employer report the service cost component in the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of operating profit (presented as "Nonoperating expense" in our consolidated income statement). We adopted this standard as of January 1, 2018 and applied the amendments retrospectively, and all applicable amounts included in this filing have been recast accordingly. We used the practical expedient that permits us to use the amounts previously disclosed in our employee postretirement benefits note for the prior comparative periods as the basis for applying the retrospective presentation requirements. The FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. We adopted this standard as of January 1, 2018 on a modified retrospective basis and recorded an immaterial cumulative adjustment to retained earnings. 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. We adopted this ASU effective January 1, 2018 on a full retrospective basis. Adoption of this standard did not result in significant changes to our accounting policies, business processes, systems or controls, or have a material impact on our financial position, results of operations and cash flows or related disclosures. As such, prior period financial statements were not recast. We primarily generate revenue from the sale of finished products and recognize revenue at the time of product shipment or delivery, depending on when control passes. Rebate and promotion accruals are based on estimates of the quantity of customer sales. Promotion accruals also consider estimates of the number of consumer coupons that will be redeemed and timing and costs of activities within the promotional programs. The cost of promotion activities provided to customers is classified as a reduction in sales revenue. Under ASU No. 2014-09, effective January 1, 2018 for interim reporting, the estimated redemption value of consumer coupons and related expense are recorded when the related revenue from customers is recognized. In prior years, these costs were recognized at the time of coupon issuance. The impact of this change was not material. Accounting Standards Issued - Not Yet Adopted The FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The standard will permit entities to reclassify tax effects stranded in accumulated other comprehensive income ("AOCI") as a result of U.S. tax reform to retained earnings. The standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The effects of this standard on our financial position, results of operations and cash flows are not expected to be material. The FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The standard makes more financial and non-financial hedging strategies eligible for hedge accounting, amends the presentation and disclosure requirements and changes how companies assess effectiveness. For public companies, this ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period. The effects of this standard on our financial position, results of operations and cash flows are not expected to be material. The FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. The ASU requires additional disclosures. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The ASU requires adoption based upon a modified retrospective transition approach. The effects of this standard on our financial position, results of operations and cash flows are not yet known. |
2018 Global Restructuring Progr
2018 Global Restructuring Program | 3 Months Ended |
Mar. 31, 2018 | |
2018 Global Restructuring Program | |
Restructuring Cost and Reserve | |
Restructuring and Related Activities Disclosure | 2018 Global Restructuring Program On January 23, 2018, we announced the 2018 Global Restructuring Program to reduce our structural cost base by streamlining and simplifying our manufacturing supply chain and overhead organization. We expect to close or sell approximately 10 manufacturing facilities and expand production capacity at several others. We expect to exit or divest some lower-margin businesses that generate approximately 1 percent of our net sales. The sales are concentrated in our consumer tissue business segment. The restructuring is expected to impact our organizations in all major geographies. Workforce reductions are expected to be in the range of 5,000 to 5,500 . Certain capital appropriations under the 2018 Global Restructuring Program are being finalized. Accounting for actions related to each appropriation will commence when the appropriation is authorized for execution. The restructuring is expected to be completed by the end of 2020 , with total costs anticipated to be $1.7 billion to $1.9 billion pre-tax ( $1.35 billion to $1.5 billion after tax). Cash costs are expected to be $900 to $1.0 billion, primarily related to workforce reductions. Non-cash charges are expected to be $800 to $900 pre-tax and will primarily consist of incremental depreciation and asset impairments. Restructuring charges in 2018 are expected to be $1.2 billion to $1.35 billion pre-tax ( $950 to $1.05 billion after tax). The following charges were incurred in connection with the 2018 Global Restructuring Program: Three Months Ended Cost of products sold: Charges for workforce reductions $ 119 Asset impairments 74 Asset write-offs 55 Incremental depreciation 28 Other exit costs 1 Total 277 Marketing, research and general expenses: Charges for workforce reductions 286 Other exit costs 14 Total 300 Total charges 577 Provision for income taxes (143 ) Net charges 434 Net impact related to equity companies and noncontrolling interests (6 ) Net charges attributable to Kimberly-Clark Corporation $ 428 The asset impairments charge measurement was based on the excess of the carrying value of the impacted asset groups over their fair values. These fair values were measured using discounted cash flows, expected over the limited time the assets would remain in use, and as a result, the assets were essentially written off. The use of discounted cash flows represents a level 3 measure under the fair value hierarchy. See Note 8 for charges by segment. The following summarizes the restructuring liabilities activity for the quarter: 2018 Restructuring liabilities at January 1 $ — Charges for workforce reductions and other exit costs 418 Cash payments (14 ) Currency and other 3 Restructuring liabilities at March 31 $ 407 |
U.S. Tax Reform
U.S. Tax Reform | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act made changes to the U.S. tax code, which included (1) reduced U.S. corporate tax rate from 35 percent to 21 percent, (2) implemented a base erosion and anti-abuse tax, (3) generally eliminated U.S. federal income taxes on dividends from foreign subsidiaries, (4) a new provision designed to tax global intangible low-taxed income ("GILTI") of foreign subsidiaries which allows for the possibility of utilizing foreign tax credits to offset the tax liability (subject to some limitations), (5) a lower effective U.S. tax rate on certain revenues from sources outside the U.S., and (6) a one-time transition tax on certain undistributed earnings of foreign subsidiaries. In the period ended December 31, 2017, we recorded a provisional discrete net tax benefit associated with the Tax Act and related matters. In the quarter ended March 31, 2018, we recorded discrete net tax expense of $82 primarily related to recently issued guidance affecting tax benefits we recorded in fourth quarter 2017 for certain tax planning actions taken in anticipation of the Tax Act. As of March 31, 2018, the amounts recorded for the Tax Act remain provisional for the transition tax, the remeasurement of deferred taxes, and our reassessment of permanently reinvested earnings, uncertain tax positions and valuation allowances. These estimates may be impacted by further analysis and future clarification and guidance regarding available tax accounting methods and elections, earnings and profits computations, state tax conformity to federal tax changes and the impact of the GILTI provisions. At March 31, 2018, we were not able to reasonably estimate, and therefore have not recorded, deferred taxes for the GILTI provisions. We have not yet determined our policy election with respect to whether to record deferred taxes for basis differences expected to reverse as a result of the GILTI provisions in future periods or use the period cost method. We have, however, included an estimate of the current GILTI impact in our tax provision for 2018. |
Fair Value Information
Fair Value Information | 3 Months Ended |
Mar. 31, 2018 | |
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 the three months ended March 31, 2018 and for the full year 2017 , there were no significant transfers among level 1, 2, or 3 fair value determinations. Derivative assets and liabilities are measured on a recurring basis at fair value. At March 31, 2018 and December 31, 2017 , derivative assets were $30 and $27 , respectively, and derivative liabilities were $69 and $51 , 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 values of hedging instruments used to manage foreign currency risk are 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 7 . Redeemable preferred securities of subsidiaries are measured on a recurring basis at fair value and were $61 at both March 31, 2018 and December 31, 2017 . They are not traded in active markets. For certain redeemable securities, 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. The fair values of the remaining redeemable securities were based on a discounted cash flow valuation model. Measurement of the redeemable preferred securities is considered a level 3 measurement. Company-owned life insurance ("COLI") assets are measured on a recurring basis at fair value. COLI assets were $68 at both March 31, 2018 and December 31, 2017 . The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in other assets. The COLI policies are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy. 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 March 31, 2018 December 31, 2017 Assets Cash and cash equivalents (a) 1 $ 626 $ 626 $ 616 $ 616 Time deposits (b) 1 252 252 185 185 Liabilities and redeemable securities of subsidiaries Short-term debt (c) 2 794 794 547 547 Long-term debt (d) 2 6,886 7,186 6,878 7,398 (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. Time deposits 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
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 EPS. The average number of common shares outstanding is reconciled to those used in the basic and diluted EPS computations as follows: Three Months Ended March 31 (Millions of shares) 2018 2017 Basic 350.4 356.0 Dilutive effect of stock options and restricted share unit awards 2.2 2.6 Diluted 352.6 358.6 The impact of 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 was insignificant. The number of common shares outstanding as of March 31, 2018 and 2017 was 349.6 million and 355.2 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Set forth below is a reconciliation for the three months ended March 31, 2018 of the carrying amount of total stockholders' equity from the beginning of the period to the end of the period. Stockholders' Equity Attributable to The Corporation Noncontrolling Interests Balance at December 31, 2017 $ 629 $ 253 Net Income 93 3 Other comprehensive income, net of tax 115 1 Stock-based awards exercised or vested 14 — Recognition of stock-based compensation 17 — Shares repurchased (211 ) — Dividends declared (350 ) (20 ) Other 10 1 Balance at March 31, 2018 $ 317 $ 238 During the three months ended March 31, 2018 , we repurchased 1.8 million shares at a total cost of $204 pursuant to a share repurchase program authorized by our Board of Directors. 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 would be removed from AOCI and reported as part of the gain or loss on the sale or liquidation. 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. The change in net unrealized currency translation for the three months ended March 31, 2018 was primarily due to the strengthening of the British pound sterling and euro versus the U.S. dollar. The changes in the components of 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, 2016 $ (2,351 ) $ (1,097 ) $ (31 ) $ 5 Other comprehensive income (loss) before reclassifications 248 (11 ) — (15 ) (Income) loss reclassified from AOCI — 9 (a) — (1 ) Net current period other comprehensive income (loss) 248 (2 ) — (16 ) Balance as of March 31, 2017 $ (2,103 ) $ (1,099 ) $ (31 ) $ (11 ) Balance as of December 31, 2017 $ (1,864 ) $ (976 ) $ (39 ) $ (40 ) Other comprehensive income (loss) before reclassifications 116 (10 ) — (9 ) (Income) loss reclassified from AOCI — 10 (a) — 8 Net current period other comprehensive income (loss) 116 — — (1 ) Balance as of March 31, 2018 $ (1,748 ) $ (976 ) $ (39 ) $ (41 ) (a) Included in computation of net periodic benefit costs. |
Objectives And Strategies For U
Objectives And Strategies For Using Derivatives | 3 Months Ended |
Mar. 31, 2018 | |
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, 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 borrowings. A portion of our balance sheet translation exposure for certain affiliates, which results from changes in translation rates between the affiliates’ functional currencies and the U.S. dollar, is hedged with financial instruments. These instruments are designated as net investment hedges and have an aggregate notional value of $1.0 billion at March 31, 2018 . Changes in fair value of net investment hedges are recorded in AOCI as part of the cumulative translation adjustment. At March 31, 2018 and December 31, 2017 , derivative assets were $30 and $27 , respectively, and derivative liabilities were $69 and $51 , respectively, primarily comprised of foreign currency exchange contracts. 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. As of March 31, 2018 , the aggregate notional value of outstanding interest rate contracts designated as fair value hedges was $300 . Fair value hedges resulted in no significant ineffectiveness in the three months ended March 31, 2018 and 2017 , and gains or losses recognized in interest expense for interest rate swaps were not significant. For the three months ended March 31, 2018 and 2017 , no gains or losses were 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 March 31, 2018 , outstanding commodity forward contracts were in place to hedge a limited portion of our estimated requirements of the related underlying commodities in the remainder of 2018 and future periods. As of March 31, 2018 , the aggregate notional value of outstanding foreign exchange contracts designated as cash flow hedges was $764 . Cash flow hedges resulted in no significant ineffectiveness for the three months ended March 31, 2018 and 2017 , and no significant gains or losses were reclassified into earnings as a result of the discontinuance of cash flow hedges due to the original forecasted transaction no longer being probable of occurring. At March 31, 2018 , 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 March 31, 2018 is March 2020 . Gains or losses on undesignated foreign exchange hedging instruments are immediately recognized in other (income) and expense, net. A gain of $3 and a loss of $3 were recorded in the three months ended March 31, 2018 and 2017 , 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 March 31, 2018 , the notional amount of these undesignated derivative instruments was approximately $2.3 billion . |
Description Of Business Segment
Description Of Business Segments | 3 Months Ended |
Mar. 31, 2018 | |
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 K-C Professional. The reportable segments were determined in accordance with how our chief operating decision maker and 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 ongoing operations of the business segments, including the costs of corporate decisions related to the 2018 Global Restructuring Program described in Note 2. 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. Information concerning consolidated operations by business segment is presented in the following tables: Three Months Ended March 31 2018 2017 Change NET SALES Personal Care $ 2,307 $ 2,250 +3 % Consumer Tissue 1,579 1,455 +9 % K-C Professional 832 789 +5 % Corporate & Other 13 10 N.M. TOTAL NET SALES $ 4,731 $ 4,504 +5 % OPERATING PROFIT Personal Care $ 470 $ 487 -3 % Consumer Tissue 249 280 -11 % K-C Professional 158 149 +6 % Corporate & Other (a) (632 ) (63 ) N.M. Other (income) and expense, net (a) (2 ) 5 N.M. TOTAL OPERATING PROFIT $ 247 $ 848 -71 % N.M. - Not Meaningful (a) Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including charges related to the 2018 Global Restructuring Program. The first quarter 2018 restructuring charges related to the business segments were $314 in personal care, $141 in consumer tissue and $95 in K-C Professional. |
Supplemental Balance Sheet Data
Supplemental Balance Sheet Data | 3 Months Ended |
Mar. 31, 2018 | |
Statement of Financial Position [Abstract] | |
Additional Financial Information Disclosure | Supplemental Balance Sheet Data The following schedule presents a summary of inventories by major class: March 31, 2018 December 31, 2017 LIFO Non-LIFO Total LIFO Non-LIFO Total Raw materials $ 86 $ 266 $ 352 $ 87 $ 258 $ 345 Work in process 102 101 203 110 103 213 Finished goods 412 685 1,097 421 684 1,105 Supplies and other — 304 304 — 303 303 600 1,356 1,956 618 1,348 1,966 Excess of FIFO or weighted-average cost over LIFO cost (178 ) — (178 ) (176 ) — (176 ) Total $ 422 $ 1,356 $ 1,778 $ 442 $ 1,348 $ 1,790 Inventories are valued at the lower of cost or 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. The following schedule presents a summary of property, plant and equipment, net: March 31, 2018 December 31, 2017 Land $ 175 $ 173 Buildings 2,861 2,830 Machinery and equipment 14,604 14,612 Construction in progress 323 300 17,963 17,915 Less accumulated depreciation (10,635 ) (10,479 ) Total $ 7,328 $ 7,436 |
2018 Global Restructuring Pro15
2018 Global Restructuring Program (Tables) - 2018 Global Restructuring Program | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring Cost and Reserve | |
Restructuring and Related Costs | The following charges were incurred in connection with the 2018 Global Restructuring Program: Three Months Ended Cost of products sold: Charges for workforce reductions $ 119 Asset impairments 74 Asset write-offs 55 Incremental depreciation 28 Other exit costs 1 Total 277 Marketing, research and general expenses: Charges for workforce reductions 286 Other exit costs 14 Total 300 Total charges 577 Provision for income taxes (143 ) Net charges 434 Net impact related to equity companies and noncontrolling interests (6 ) Net charges attributable to Kimberly-Clark Corporation $ 428 |
Restructuring Reserve [Roll Forward] | |
Schedule of Restructuring Reserve by Type of Cost | The following summarizes the restructuring liabilities activity for the quarter: 2018 Restructuring liabilities at January 1 $ — Charges for workforce reductions and other exit costs 418 Cash payments (14 ) Currency and other 3 Restructuring liabilities at March 31 $ 407 Of the $407 total restructuring liabilities, $306 recorded in Accrued expenses flows through Operating working capital in our consolidated cash flow statement and the remaining $101 recorded in Other Liabilities flows through Other under operating activities in our consolidated cash flow statement. |
Fair Value Information (Tables)
Fair Value Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 December 31, 2017 Assets Cash and cash equivalents (a) 1 $ 626 $ 626 $ 616 $ 616 Time deposits (b) 1 252 252 185 185 Liabilities and redeemable securities of subsidiaries Short-term debt (c) 2 794 794 547 547 Long-term debt (d) 2 6,886 7,186 6,878 7,398 (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. Time deposits 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: Three Months Ended March 31 (Millions of shares) 2018 2017 Basic 350.4 356.0 Dilutive effect of stock options and restricted share unit awards 2.2 2.6 Diluted 352.6 358.6 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Roll Forward Of Stockholders' Equity | Set forth below is a reconciliation for the three months ended March 31, 2018 of the carrying amount of total stockholders' equity from the beginning of the period to the end of the period. Stockholders' Equity Attributable to The Corporation Noncontrolling Interests Balance at December 31, 2017 $ 629 $ 253 Net Income 93 3 Other comprehensive income, net of tax 115 1 Stock-based awards exercised or vested 14 — Recognition of stock-based compensation 17 — Shares repurchased (211 ) — Dividends declared (350 ) (20 ) Other 10 1 Balance at March 31, 2018 $ 317 $ 238 |
Schedule of Accumulated Other Comprehensive Income (Loss), Attributable to Kimberly-Clark Corporation | The changes in the components of 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, 2016 $ (2,351 ) $ (1,097 ) $ (31 ) $ 5 Other comprehensive income (loss) before reclassifications 248 (11 ) — (15 ) (Income) loss reclassified from AOCI — 9 (a) — (1 ) Net current period other comprehensive income (loss) 248 (2 ) — (16 ) Balance as of March 31, 2017 $ (2,103 ) $ (1,099 ) $ (31 ) $ (11 ) Balance as of December 31, 2017 $ (1,864 ) $ (976 ) $ (39 ) $ (40 ) Other comprehensive income (loss) before reclassifications 116 (10 ) — (9 ) (Income) loss reclassified from AOCI — 10 (a) — 8 Net current period other comprehensive income (loss) 116 — — (1 ) Balance as of March 31, 2018 $ (1,748 ) $ (976 ) $ (39 ) $ (41 ) (a) Included in computation of net periodic benefit costs. |
Description Of Business Segme19
Description Of Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Information Concerning Consolidated Operations by Business Segment | Information concerning consolidated operations by business segment is presented in the following tables: Three Months Ended March 31 2018 2017 Change NET SALES Personal Care $ 2,307 $ 2,250 +3 % Consumer Tissue 1,579 1,455 +9 % K-C Professional 832 789 +5 % Corporate & Other 13 10 N.M. TOTAL NET SALES $ 4,731 $ 4,504 +5 % OPERATING PROFIT Personal Care $ 470 $ 487 -3 % Consumer Tissue 249 280 -11 % K-C Professional 158 149 +6 % Corporate & Other (a) (632 ) (63 ) N.M. Other (income) and expense, net (a) (2 ) 5 N.M. TOTAL OPERATING PROFIT $ 247 $ 848 -71 % N.M. - Not Meaningful (a) Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including charges related to the 2018 Global Restructuring Program. The first quarter 2018 restructuring charges related to the business segments were $314 in personal care, $141 in consumer tissue and $95 in K-C Professional. |
Summary of Balance Sheet Data (
Summary of Balance Sheet Data (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Statement of Financial Position [Abstract] | |
Schedule of Inventory, Current | The following schedule presents a summary of inventories by major class: March 31, 2018 December 31, 2017 LIFO Non-LIFO Total LIFO Non-LIFO Total Raw materials $ 86 $ 266 $ 352 $ 87 $ 258 $ 345 Work in process 102 101 203 110 103 213 Finished goods 412 685 1,097 421 684 1,105 Supplies and other — 304 304 — 303 303 600 1,356 1,956 618 1,348 1,966 Excess of FIFO or weighted-average cost over LIFO cost (178 ) — (178 ) (176 ) — (176 ) Total $ 422 $ 1,356 $ 1,778 $ 442 $ 1,348 $ 1,790 |
Property, Plant and Equipment | The following schedule presents a summary of property, plant and equipment, net: March 31, 2018 December 31, 2017 Land $ 175 $ 173 Buildings 2,861 2,830 Machinery and equipment 14,604 14,612 Construction in progress 323 300 17,963 17,915 Less accumulated depreciation (10,635 ) (10,479 ) Total $ 7,328 $ 7,436 |
2018 Global Restructuring Pro21
2018 Global Restructuring Program Narrative (Details) - 2018 Global Restructuring Program $ in Millions | 3 Months Ended | 36 Months Ended | ||
Mar. 31, 2018USD ($) | Dec. 31, 2020USD ($)Employee | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve | ||||
Restructuring Reserve | $ 407 | $ 0 | ||
After Tax | ||||
Restructuring Cost and Reserve | ||||
Restructuring Charges | 434 | |||
Before Tax | ||||
Restructuring Cost and Reserve | ||||
Restructuring Charges | 577 | |||
Other Liabilities | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve | 101 | |||
Accrued Expenses | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve | $ 306 | |||
Minimum | Scenario, Forecast | ||||
Restructuring Cost and Reserve | ||||
Expected Number of Positions Eliminated | Employee | 5,000 | |||
Minimum | After Tax | Scenario, Forecast | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | $ 1,350 | $ 950 | ||
Minimum | Before Tax | Scenario, Forecast | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 1,700 | 1,200 | ||
Minimum | Cash charges | Scenario, Forecast | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 900 | |||
Minimum | Non-cash charges | Before Tax | Scenario, Forecast | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | $ 800 | |||
Maximum | Scenario, Forecast | ||||
Restructuring Cost and Reserve | ||||
Expected Number of Positions Eliminated | Employee | 5,500 | |||
Maximum | After Tax | Scenario, Forecast | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | $ 1,500 | 1,050 | ||
Maximum | Before Tax | Scenario, Forecast | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 1,900 | $ 1,350 | ||
Maximum | Cash charges | Scenario, Forecast | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 1,000 | |||
Maximum | Non-cash charges | Before Tax | Scenario, Forecast | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | $ 900 |
Restructuring and Related Activ
Restructuring and Related Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve | ||
Asset impairments | $ 74 | $ 0 |
Provision for income taxes | (104) | $ (207) |
2018 Global Restructuring Program | ||
Restructuring Cost and Reserve | ||
Provision for income taxes | (143) | |
2018 Global Restructuring Program | Charges for workforce reductions | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 418 | |
2018 Global Restructuring Program | After Tax | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 434 | |
2018 Global Restructuring Program | After Tax | Parent | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 428 | |
2018 Global Restructuring Program | After Tax | Equity Companies and Noncontrolling Interests | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | (6) | |
2018 Global Restructuring Program | Before Tax | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 577 | |
2018 Global Restructuring Program | Cost of Sales | Before Tax | ||
Restructuring Cost and Reserve | ||
Charges for workforce reductions | 119 | |
Asset impairments | 74 | |
Incremental depreciation | 28 | |
Other exit costs | 1 | |
Restructuring Charges | 277 | |
2018 Global Restructuring Program | Cost of Sales | Before Tax | Asset write-offs | ||
Restructuring Cost and Reserve | ||
Restructuring Charges | 55 | |
2018 Global Restructuring Program | Marketing, Research and General Expenses | Before Tax | ||
Restructuring Cost and Reserve | ||
Charges for workforce reductions | 286 | |
Other exit costs | 14 | |
Restructuring Charges | $ 300 |
2018 Global Restructuring Pro23
2018 Global Restructuring Program Restructuring Reserve [Roll Forward] (Details) - 2018 Global Restructuring Program $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Restructuring Cost and Reserve | |
Accrued expenses - January 1 | $ 0 |
Cash payments | (14) |
Currency and other | 3 |
Accrued expenses - March 31 | 407 |
Workforce reductions and other exit costs | |
Restructuring Cost and Reserve | |
Charges for workforce reductions and other exit costs | $ 418 |
U.S. Tax Reform U.S. Tax Reform
U.S. Tax Reform U.S. Tax Reform (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
U.S. Tax Reform Related Matters | ||
U.S. Federal Statutory Income Tax Rate | 21.00% | 35.00% |
U.S. Tax Cuts and Job Act | ||
U.S. Tax Reform Related Matters | ||
Other Tax Expense (Benefit) | $ 82 |
Fair Value Information (Narrati
Fair Value Information (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Redeemable Preferred Securities Of Subsidiaries Fair Value Disclosure | $ 61 | $ 61 |
Fair Value, Measurements, Recurring | Net Asset Value or Its Equivalent | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Company-owned life insurance (“COLI”) | 68 | 68 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivatives Assets | 30 | 27 |
Derivatives Liability | $ 69 | $ 51 |
Fair Value Information (Fair Va
Fair Value Information (Fair Value Of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Carrying (Reported) Amount, Fair Value Disclosure | Fair Value, Inputs, Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | [1] | $ 626 | $ 616 |
Time deposits | [2] | 252 | 185 |
Carrying (Reported) Amount, Fair Value Disclosure | Fair Value, Inputs, Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Short-term debt | [3] | 794 | 547 |
Long-term debt | [4] | 6,886 | 6,878 |
Estimated Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | [1] | 626 | 616 |
Time deposits | [2] | 252 | 185 |
Estimated Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Short-term debt | [3] | 794 | 547 |
Long-term debt | [4] | $ 7,186 | $ 7,398 |
[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. Time deposits 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. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Earnings Per Share [Abstract] | ||
Common shares outstanding | 349.6 | 355.2 |
Earnings Per Share (Average Com
Earnings Per Share (Average Common Shares Outstanding Basic And Diluted) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Average Common Shares Outstanding Basic and Diluted | ||
Basic | 350.4 | 356 |
Dilutive effect of stock options and restricted share unit awards | 2.2 | 2.6 |
Diluted | 352.6 | 358.6 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)shares | |
Equity, Class of Treasury Stock | |
Repurchased shares | shares | 1.8 |
Repurchased shares, total cost | $ | $ 204 |
Stockholders' Equity (Component
Stockholders' Equity (Components Of Stockholders' Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Kimberly-Clark Corporation | $ 317 | $ 629 | |
Noncontrolling Interests | 238 | $ 253 | |
Increase (Decrease) in Stockholders' Equity | |||
Net Income (Loss) Attributable to Parent | 93 | $ 563 | |
Parent | |||
Increase (Decrease) in Stockholders' Equity | |||
Net Income (Loss) Attributable to Parent | 93 | ||
Other comprehensive income, net of tax | 115 | ||
Stock-based awards exercised or vested | 14 | ||
Recognition of stock-based compensation | 17 | ||
Shares repurchased | (211) | ||
Dividends declared | (350) | ||
Other | 10 | ||
Noncontrolling Interests | |||
Increase (Decrease) in Stockholders' Equity | |||
Net Income | 3 | ||
Other comprehensive income, net of tax | 1 | ||
Stock-based awards exercised or vested | 0 | ||
Recognition of stock-based compensation | 0 | ||
Shares repurchased | 0 | ||
Dividends declared | (20) | ||
Other | $ 1 |
Stockholders' Equity (Compone31
Stockholders' Equity (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Net current period other comprehensive income (loss) | $ 117 | $ 267 | |
Net current period other comprehensive income (loss) | 0 | (2) | |
Defined Benefit Pension Plans | |||
Defined benefit and other postretirement benefit plans - Beginning balance | (976) | (1,097) | |
Other comprehensive income/(loss) before reclassifications | (10) | (11) | |
(Income)/loss reclassified from AOCI | [1] | 10 | 9 |
Net current period other comprehensive income (loss) | 0 | (2) | |
Defined benefit and other postretirement benefit plans - Ending balance | (976) | (1,099) | |
Other Postretirement Benefit Plans | |||
Defined benefit and other postretirement benefit plans - Beginning balance | (39) | (31) | |
Other comprehensive income/(loss) before reclassifications | 0 | 0 | |
(Income)/loss reclassified from AOCI | [1] | 0 | 0 |
Net current period other comprehensive income (loss) | 0 | 0 | |
Defined benefit and other postretirement benefit plans - Ending balance | (39) | (31) | |
Cash Flow Hedges and Other | |||
Cash flow hedge and other - Beginning balance | (40) | 5 | |
Other comprehensive income/(loss) before reclassifications | (9) | (15) | |
(Income)/loss reclassified from AOCI | 8 | (1) | |
Net current period other comprehensive income (loss) | (1) | (16) | |
Cash flow hedge and other - Ending balance | (41) | (11) | |
Unrealized Translation | |||
Unrealized translation - Beginning balance | (1,864) | (2,351) | |
Other comprehensive income/(loss) before reclassifications | 116 | 248 | |
(Income)/loss reclassified from AOCI | 0 | 0 | |
Net current period other comprehensive income (loss) | 116 | 248 | |
Unrealized translation - Ending balance | $ (1,748) | $ (2,103) | |
[1] | (a)Included in computation of net periodic benefit costs. |
Objectives And Strategies For32
Objectives And Strategies For Using Derivatives (Narratives) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on undesignated foreign exchange hedging instruments | $ 3,000,000 | $ (3,000,000) | |
Foreign currency exchange contracts | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) | |||
Aggregate notional values of outstanding derivatives | 2,300,000,000 | ||
Net Investment Hedging | |||
Derivative Instruments, Gain (Loss) | |||
Aggregate notional values of outstanding derivatives | $ 1,000,000,000 | ||
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) | |||
Cash flow hedge ineffectiveness assertion | Cash flow hedges resulted in no significant ineffectiveness for the three months ended March 31, 2018 and 2017 | ||
Derivative, Maturity Date | Mar. 31, 2020 | ||
Cash Flow Hedging | Foreign currency exchange contracts | |||
Derivative Instruments, Gain (Loss) | |||
Aggregate notional values of outstanding derivatives | $ 764,000,000 | ||
Fair Value Hedging | |||
Derivative Instruments, Gain (Loss) | |||
Fair value hedge ineffectiveness assertion | Fair value hedges resulted in no significant ineffectiveness in the three months ended March 31, 2018 and 2017 | ||
Gain (loss) recognized in earnings as a result of hedge not qualifying as a fair value hedge | $ 0 | $ 0 | |
Fair Value Hedging | Interest Rate Contract [Member] | |||
Derivative Instruments, Gain (Loss) | |||
Aggregate notional values of outstanding derivatives | 300,000,000 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | |||
Derivative Instruments, Gain (Loss) | |||
Derivative Asset | 30,000,000 | $ 27,000,000 | |
Derivative Liability | $ 69,000,000 | $ 51,000,000 |
Description Of Business Segme33
Description Of Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Net Sales | $ 4,731 | $ 4,504 | |
Sales Revenue, Net, Percent Change | 5.00% | ||
Operating Profit | $ 247 | 848 | |
Other (income) and expense, net | [1] | $ (2) | 5 |
Operating Profit, Percent Change | (71.00%) | ||
2018 Global Restructuring Program | Before Tax | |||
Restructuring Charges | $ 577 | ||
Personal Care | |||
Net Sales | $ 2,307 | 2,250 | |
Sales Revenue, Net, Percent Change | 3.00% | ||
Operating Profit | $ 470 | 487 | |
Operating Profit, Percent Change | (3.00%) | ||
Personal Care | 2018 Global Restructuring Program | Before Tax | |||
Restructuring Charges | $ 314 | ||
Consumer Tissue | |||
Net Sales | $ 1,579 | 1,455 | |
Sales Revenue, Net, Percent Change | 9.00% | ||
Operating Profit | $ 249 | 280 | |
Operating Profit, Percent Change | (11.00%) | ||
Consumer Tissue | 2018 Global Restructuring Program | Before Tax | |||
Restructuring Charges | $ 141 | ||
K-C Professional | |||
Net Sales | $ 832 | 789 | |
Sales Revenue, Net, Percent Change | 5.00% | ||
Operating Profit | $ 158 | 149 | |
Operating Profit, Percent Change | 6.00% | ||
K-C Professional | 2018 Global Restructuring Program | Before Tax | |||
Restructuring Charges | $ 95 | ||
Corporate and Other | |||
Net Sales | 13 | 10 | |
Operating Profit | [1] | $ (632) | $ (63) |
[1] | Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including charges related to the 2018 Global Restructuring Program. The first quarter 2018 restructuring charges related to the business segments were $314 in personal care, $141 in consumer tissue and $95 in K-C Professional. |
Supplemental Balance Sheet Da34
Supplemental Balance Sheet Data - Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Raw materials | $ 352 | $ 345 |
Work in process | 203 | 213 |
Finished goods | 1,097 | 1,105 |
Supplies and other | 304 | 303 |
Inventory, Gross | 1,956 | 1,966 |
Excess of FIFO or weighted-average cost over LIFO cost | (178) | (176) |
Total | 1,778 | 1,790 |
LIFO | ||
Raw materials | 86 | 87 |
Work in process | 102 | 110 |
Finished goods | 412 | 421 |
Supplies and other | 0 | 0 |
Inventory, Gross | 600 | 618 |
Excess of FIFO or weighted-average cost over LIFO cost | (178) | (176) |
Total | 422 | 442 |
Non-LIFO | ||
Raw materials | 266 | 258 |
Work in process | 101 | 103 |
Finished goods | 685 | 684 |
Supplies and other | 304 | 303 |
Inventory, Gross | 1,356 | 1,348 |
Excess of FIFO or weighted-average cost over LIFO cost | 0 | 0 |
Total | $ 1,356 | $ 1,348 |
Supplemental Balance Sheet Da35
Supplemental Balance Sheet Data - Property Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment | ||
Land | $ 175 | $ 173 |
Buildings | 2,861 | 2,830 |
Machinery and equipment | 14,604 | 14,612 |
Construction in progress | 323 | 300 |
Property, Plant and Equipment, Gross | 17,963 | 17,915 |
Less accumulated depreciation | (10,635) | (10,479) |
Total | $ 7,328 | $ 7,436 |