Exhibit No. (12)
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Dollar amounts in millions)
Year Ended December 31 | |||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||
Consolidated Companies | |||||||||||||||
Income from continuing operations before income taxes | $ | 2,289 | $ | 2,318 | $ | 1,845 | $ | 1,969 | $ | 2,203 | |||||
Interest expense | 304 | 265 | 220 | 190 | 163 | ||||||||||
Interest factor in rent expense | 102 | 88 | 75 | 66 | 65 | ||||||||||
Amortization of capitalized interest | 13 | 15 | 16 | 7 | 13 | ||||||||||
Equity Affiliates | |||||||||||||||
Share of 50%-owned: | |||||||||||||||
Income before income taxes | 1 | 2 | 3 | 2 | 2 | ||||||||||
Interest expense | — | — | — | — | — | ||||||||||
Interest factor in rent expense | — | — | — | — | — | ||||||||||
Amortization of capitalized interest | — | — | — | — | — | ||||||||||
Distributed income of less than 50%-owned | 131 | 130 | 244 | 113 | 95 | ||||||||||
Earnings | $ | 2,840 | $ | 2,818 | $ | 2,403 | $ | 2,347 | $ | 2,541 | |||||
Consolidated Companies | |||||||||||||||
Interest Expense | $ | 304 | $ | 265 | $ | 220 | $ | 190 | $ | 163 | |||||
Capitalized interest | 14 | 18 | 15 | 8 | 6 | ||||||||||
Interest factor in rent expense | 102 | 88 | 75 | 66 | 65 | ||||||||||
Equity Affiliates | |||||||||||||||
Share of 50%-owned: | |||||||||||||||
Interest and capitalized interest | — | — | — | — | — | ||||||||||
Interest factor in rent expense | — | — | — | — | — | ||||||||||
Fixed Charges | $ | 420 | $ | 371 | $ | 310 | $ | 264 | $ | 234 | |||||
Ratio of earnings to fixed charges | 6.76 | 7.60 | 7.75 | 8.89 | 10.86 | ||||||||||
Note: | The Corporation is liable for certain obligations of S.D. Warren Company, which was sold in December 1994. The buyer provided the Corporation with a letter of credit from a major financial institution guaranteeing repayment of these obligations. No losses are expected from these arrangements and they have not been included in the computation of earnings to fixed charges. |