Kimberly-Clark (KMB) 10-K 24 Feb 10 2009 FY Annual report Financial data

Statement Of Income

Statement Of Income (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net Sales	$19,115	$19,415	$18,266
Cost of products sold	12,695	13,557	12,562
Gross Profit	6,420	5,858	5,704
Marketing, research and general expenses	3,498	3,291	3,106
Other (income) and expense, net	97	20	(18)
Operating Profit	2,825	2,547	2,616
Nonoperating expense	0	0	(67)
Interest income	26	46	34
Interest expense	(275)	(304)	(265)
Income Before Income Taxes, Equity Interests and Extraordinary Loss	2,576	2,289	2,318
Provision for income taxes	(746)	(618)	(537)
Income Before Equity Interests and Extraordinary Loss	1,830	1,671	1,781
Share of net income of equity companies	164	166	170
Income Before Extraordinary Loss	1,994	1,837	1,951
Extraordinary loss, net of income taxes, attributable to Kimberly-Clark Corporation	0	(8)	0
Net Income	1,994	1,829	1,951
Net income attributable to noncontrolling interests	(110)	(139)	(128)
Net Income Attributable to Kimberly-Clark Corporation	$1,884	$1,690	$1,823
Basic
Before extraordinary loss	4.53	4.06	4.11
Extraordinary loss	$0	-0.02	$0
Net Income Attributable to Kimberly-Clark Corporation	4.53	4.04	4.11
Diluted
Before extraordinary loss	4.52	4.05	4.08
Extraordinary loss	$0	-0.02	$0
Net Income Attributable to Kimberly-Clark Corporation	4.52	4.03	4.08

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current Assets
Cash and cash equivalents	$798	$364
Accounts receivable, net	2,566	2,492
Inventories	2,033	2,493
Deferred income taxes	136	131
Time deposits	189	141
Other current assets	142	192
Total Current Assets	5,864	5,813
Property, Plant and Equipment, net	8,033	7,667
Investments in Equity Companies	355	324
Goodwill	3,275	2,743
Long-Term Notes Receivable	607	603
Other Assets	1,075	939
Assets, Total	19,209	18,089
Current Liabilities
Debt payable within one year	610	1,083
Trade accounts payable	1,920	1,603
Accrued expenses	2,064	1,723
Accrued income taxes	79	103
Dividends payable	250	240
Total Current Liabilities	4,923	4,752
Long-Term Debt	4,792	4,882
Noncurrent Employee Benefits	1,989	2,593
Long-Term Income Taxes Payable	168	189
Deferred Income Taxes	377	193
Other Liabilities	218	187
Redeemable Preferred and Common Securities of Subsidiaries	1,052	1,032
Kimberly-Clark Corporation Stockholders' Equity:
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 478.6 million shares at December 31, 2009 and 2008	598	598
Additional paid-in capital	399	486
Common stock held in treasury, at cost-61.6 million and 65.0 million shares at December 31, 2009 and 2008	(4,087)	(4,285)
Accumulated other comprehensive income (loss)	(1,833)	(2,386)
Retained earnings	10,329	9,465
Total Kimberly-Clark Corporation Stockholders' Equity	5,406	3,878
Noncontrolling interests	284	383
Total Stockholders' Equity	5,690	4,261
Liabilities and Stockholders' Equity, Total	$19,209	$18,089

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
	Dec. 31, 2009	Dec. 31, 2008
Preferred stock, par value	$0	$0
Preferred stock, authorized	20,000,000	20,000,000
Preferred stock, issued	0	0
Common stock, par value	1.25	1.25
Common stock, authorized	1,200,000,000	1,200,000,000
Common stock, issued	478,600,000	478,600,000
Common stock held in treasury, shares	61,600,000	65,000,000

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions, except Share data in Thousands	Common Stock Issued	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests	Total
Beginning Balance at Dec. 31, 2006	$598	$428	($1,392)	$7,896	($1,432)	$404
Beginning Balance (in shares) at Dec. 31, 2006	478,597		22,978
Net income in stockholders' equity				1,823		85	1,951
Other comprehensive income:
Unrealized translation					365	12	377
Employee postretirement benefits, net of tax					266		266
Other					10		10
Stock-based awards exercised or vested (in shares)			(6,646)
Stock-based awards exercised or vested		(40)	389	(4)
Income tax benefits on stock-based compensation		32
Shares repurchased (in shares)			41,344
Shares repurchased			(2,811)
Recognition of stock-based compensation		63
Dividends declared				(933)		(30)
Additional investment in subsidiary and other						(8)
Adoption of uncertain tax positions accounting standard				(34)
Ending balance (in shares) at Dec. 31, 2007	478,597		57,676
Ending balance at Dec. 31, 2007	598	483	(3,814)	8,748	(791)	463
Net income in stockholders' equity				1,690		82	1,829
Other comprehensive income:
Unrealized translation					(900)	(81)	(982)
Employee postretirement benefits, net of tax					(687)	(2)	(689)
Other					(8)		(8)
Stock-based awards exercised or vested (in shares)			(2,870)
Stock-based awards exercised or vested		(59)	170	(7)
Income tax benefits on stock-based compensation		10
Shares repurchased (in shares)			10,232
Shares repurchased		5	(641)
Recognition of stock-based compensation		47
Dividends declared				(966)		(51)
Additional investment in subsidiary and other						(28)
Ending balance (in shares) at Dec. 31, 2008	478,597		65,038
Ending balance at Dec. 31, 2008	598	486	(4,285)	9,465	(2,386)	383	4,261
Net income in stockholders' equity				1,884		54	1,994
Other comprehensive income:
Unrealized translation					619	6	625
Employee postretirement benefits, net of tax					(32)	(2)	(34)
Other					3		3
Stock-based awards exercised or vested (in shares)			(3,519)
Stock-based awards exercised or vested		(47)	204	(7)
Income tax benefits on stock-based compensation		7
Shares repurchased (in shares)			130
Shares repurchased			(7)
Recognition of stock-based compensation		86
Dividends declared				(996)		(45)
Additional investment in subsidiary and other		(133)	1	(17)	(37)	(112)
Ending balance (in shares) at Dec. 31, 2009	478,597		61,649
Ending balance at Dec. 31, 2009	$598	$399	($4,087)	$10,329	($1,833)	$284	$5,690

Statement Of Other Comprehensiv

Statement Of Other Comprehensive Income (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net Income	$1,994	$1,829	$1,951
Other Comprehensive Income, Net of Tax:
Unrealized currency translation adjustments	625	(982)	377
Employee postretirement benefits	(34)	(689)	266
Other	3	(8)	10
Total Other Comprehensive Income, Net of Tax	594	(1,679)	653
Comprehensive Income	2,588	150	2,604
Comprehensive income attributable to noncontrolling interests	(114)	(55)	(140)
Comprehensive Income Attributable to Kimberly-Clark Corporation	$2,474	$95	$2,464

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating Activities
Net Income	$1,994	$1,829	$1,951
Extraordinary loss, net of income taxes, attributable to Kimberly-Clark Corporation	0	8	0
Depreciation and amortization	783	775	807
Stock-based compensation	86	47	63
Deferred income taxes	141	151	(103)
Net losses on asset dispositions	36	51	30
Equity companies' earnings in excess of dividends paid	(53)	(34)	(40)
Decrease (increase) in operating working capital	1,105	(335)	(330)
Postretirement benefits	(609)	(38)	14
Other	(2)	62	37
Cash Provided by Operations	3,481	2,516	2,429
Investing Activities
Capital spending	(848)	(906)	(989)
Acquisitions of businesses, net of cash acquired	(458)	(98)	(16)
Investments in marketable securities	0	(9)	(13)
Proceeds from sales of investments	40	48	59
Net (increase) decrease in time deposits	(47)	76	(10)
Proceeds from dispositions of property	25	28	97
Other	0	14	(26)
Cash Used for Investing	(1,288)	(847)	(898)
Financing Activities
Cash dividends paid	(986)	(950)	(933)
Net (decrease) increase in short-term debt	(312)	(436)	43
Proceeds from issuance of long-term debt	2	551	2,128
Repayments of long-term debt	(278)	(274)	(339)
Cash paid on redeemable preferred securities of subsidiary	(53)	(47)	0
Proceeds from preferred securities of subsidiary	0	0	172
Proceeds from exercise of stock options	165	113	349
Acquisitions of common stock for the treasury	(7)	(653)	(2,813)
Shares purchased from noncontrolling interests	(293)	0	0
Other	(26)	(51)	(34)
Cash Used for Financing	(1,788)	(1,747)	(1,427)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	29	(31)	8
Increase (Decrease) in Cash and Cash Equivalents	434	(109)	112
Cash and Cash Equivalents, beginning of year	364	473	361
Cash and Cash Equivalents, end of year	$798	$364	$473

Accounting Policies

Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Accounting Policies	Note 1.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 (the Corporation) as if they were a single economic entity in conformity with accounting principles generally accepted in the United States of America (GAAP). All significant intercompany transactions and accounts are eliminated in consolidation. 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, consumer and trade promotion and rebate accruals, pension and other post-employment benefits, useful lives for depreciation and amortization, future cash flows associated with impairment testing for goodwill and long-lived assets and for determination of the primary beneficiary of variable interest entities, deferred tax assets and potential income tax assessments, and loss contingencies. Cash Equivalents Cash equivalents are short-term investments with an original maturity date of three months or less. Inventories and Distribution Costs For financial reporting purposes, 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, using either the First-In, First-Out (FIFO) or weighted-average cost methods, or market. Distribution costs are classified as cost of products sold. Available-for-Sale Securities Available-for-sale securities are exchange-traded equity funds and are carried at market value. At December31, 2009 and 2008, securities of $13 million and $11 million, respectively, that are not expected to be liquidated in the next 12months were classified as other assets. In addition, at December31, 2009, securities of $6million expected to be sold within one year were included in other current assets. Unrealized holding gains or losses on these securities are recorded in other comprehensive income until realized. No significant gains or losses were recognized in income for any of the three years ended December31, 2009. Property and Depreciation For financial reporting purposes, property, plant and equipment are stated at cost and are depreciated principally 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. For income tax purposes, accelerated methods of depreciation are used. Purchases of computer software are capitalized. External costs and certain internal costs (including payroll and payroll-related costs of employees) directly associated with dev

Monetization Financing Entities

Monetization Financing Entities
	12 Months Ended Dec. 31, 2009 USD / shares
Monetization Financing Entities	Note 2.Monetization Financing Entities Prior to November 2009, the Corporation had minority voting interests in two financing entities (Entity 1 and Entity 2, collectively the Financing Entities) used to monetize long-term notes (the Notes) received from the sale of certain nonstrategic timberlands and related assets to nonaffiliated buyers.The Notes have an aggregate face value of $617 million and are backed by irrevocable standby letters of credit issued by money center banks.The Notes and certain other assets were transferred to the Financing Entities in 1999 and 2000.A nonaffiliated financial institution (the Third Party) made substantive capital investments in each of the Financing Entities and had majority voting control over each of them. The Third Party also made monetization loans aggregating $617 million to the Corporation, which were assumed by the Financing Entities at the time they acquired the Notes.These monetization loans are secured by the Notes.The Corporation also contributed to the Financing Entities intercompany notes receivable aggregating $662million and intercompany preferred stock of $50million, which serve as secondary collateral for the monetization loans. In 2003,the Third Party was determined to be the primary beneficiary of the Financing Entities as a result of the interest rate variability allocated to it. On June30, 2008, the maturity dates of the lending arrangements with the Third Party were extended.In connection with the extensions, the primary beneficiary determination was reconsidered and, after excluding the interest rate variability as required by an accounting standard change, the Corporation became the primary beneficiary and began consolidating the Financing Entities. The assets and liabilities of the Financing Entities were recorded at fair value as of June30, 2008. Because the fair value of the monetization loans exceeded the fair value of the Notes, the Corporation recorded an after-tax extraordinary charge of$8million on its Consolidated Income Statement for the period ended June30, 2008.Prior period financial statements have not been adjusted to reflect the consolidation of the Financing Entities. The maturity dates of the two loans were extended in June 2009. These extensions had no effect on the primary beneficiary determination. In November 2009, the Corporation acquired the Third Partys equity voting interest in Entity 2 and acquired the Third Partys Entity 2 monetization loan rights for approximately $235 million. As a result, Entity 2 became a wholly-owned subsidiary of the Corporation. In addition, the maturity date of the Entity 1 monetization loan was extended. This extension had no effect on the primary beneficiary determination. The following summarizes the terms of the Notes and the Entity 1 loan as of December31, 2009 (millions of dollars): Description FaceValue Carrying Amount FairValue Maturity Interest Rate(1)(2) Note 1 $ 397 $ 392 $ 375 09/30/2014 LIBORminus15bps Loan 397 397 398 01/31/2011 LIBOR plus 127 bps Note 2 220 215 216 07/07/2011 LIBORminus12.5bps (1)

Fair Value Information

Fair Value Information
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Information	Note 3.Fair Value Information Fair Value Measurements 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 1Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2Quoted 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 3Prices or valuations that require inputs that are significant to the valuation and are unobservable. A financial instruments level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Set forth below are the financial assets and liabilities measured at fair value as of December31, 2009, together with the inputs used to develop those fair value measurements. December31 Fair Value Measurements Level1 Level2 Level3 (Millions of dollars) Assets Company-owned life insurance (COLI) $ 43 $ $ 43 $ Available-for-sale securities 19 13 6 Derivatives 58 58 Total $ 120 $ 13 $ 101 $ 6 Liabilities Derivatives $ 87 $ $ 87 $ The COLI policies are a source of funding primarily for the Corporations nonqualified employee benefits and are included in other assets. Available-for-sale securities are included in other current assets and other assets, as appropriate. The derivative assets and liabilities are included in other current assets, other assets, and accrued expenses, as appropriate. Level 1 Fair ValuesThe fair values of certain available-for-sale securities are based on quoted market prices in active markets for identical assets. Unrealized losses on these securities aggregating $4million have been recorded in other comprehensive income until realized. The unrealized losses have not been recognized in earnings because the Corporation has both the intent and ability to hold the securities for a period of time sufficient to allow for an anticipated recovery of fair value to the cost of such securities. Level 2 Fair ValuesThe fair value of the COLI policies is derived from investments in a mix of money market, fixed income and equity funds managed by unrelated fund managers.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.Thefair 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. Additional information on the Corporations use of derivative instruments is c

Organization Optimization Initi

Organization Optimization Initiative
	12 Months Ended Dec. 31, 2009 USD / shares
Organization Optimization Initiative	Note 4.Organization Optimization Initiative In June 2009, the Corporation announced actions to reduce its worldwide salaried workforce by approximately 1,600 positions by the end of 2009. These actions resulted in pretax charges of $128million in 2009, of which $102million has been paid and the majority of the balance recorded in accrued expenses is expected to be paid in the first quarter of 2010. Costs of these actions are recorded at the business segment and corporate levels as follows: Year Ended December31,2009 (Millionsofdollars) Personal Care $ 47 Consumer Tissue 50 K-C Professional Other 16 Health Care 6 Corporate Other 9 Total $ 128 On a geographic area basis, $84million of the charges were recorded in North America, $35million in Europe, and $9 million in the Corporations international operations in Asia, Latin America, the Middle East, Eastern Europe and Africa. The net charges are included in the following income statement captions: YearEnded December31,2009 (Millionsofdollars) Costofproductssold $ 44 Marketing,researchandgeneralexpenses 84 Total Charges 128 Provision for income taxes (37 ) Net Charges $ 91

Strategic Cost Reduction Plan

Strategic Cost Reduction Plan
	12 Months Ended Dec. 31, 2009 USD / shares
Strategic Cost Reduction Plan	Note 5.Strategic Cost Reduction Plan In July 2005, the Corporation authorized a multi-year plan to further improve its competitive position by accelerating investments in targeted growth opportunities and strategic cost reductions aimed at streamlining manufacturing and administrative operations, primarily in NorthAmerica and Europe. The strategic cost reductions commenced in the third quarter of 2005 and were completed by December31, 2008 resulting in cumulative charges of $880million before tax or $610million after tax. Total pretax charges for the strategic cost reduction plan were $60million and $107million in the years ended December31, 2008 and 2007, respectively.

Acquisitions and Intangible Ass

Acquisitions and Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions and Intangible Assets	Note 6.Acquisitions and Intangible Assets Acquisitions During the first quarter of 2009, the Corporation acquired the remaining approximate 31 percent interest in its Andean region subsidiary, Colombiana Kimberly Colpapel S.A. (CKC), for $289million. The acquisition was recorded as an equity transaction that reduced noncontrolling interests, accumulated other comprehensive income (AOCI) and additional paid-in capital by approximately $278million and increased investments in equity companies by approximately $11 million. During the second quarter of 2009, the Corporation acquired Jackson Products, Inc. (Jackson), a privately-held safety products company, for approximately $155 million, net of cash acquired. The acquisition is consistent with the Corporations global business plan strategy to accelerate growth of high-margin workplace products sold by its K-C Professional business. The excess of the purchase price over the fair values of assets and liabilities acquired resulted in recognition of goodwill of $95million, none of which is deductible for income tax purposes. Jacksons net sales since the acquisition date recognized by the Corporation were 3percent of the K-C Professional and Other business segment net sales in 2009. During the fourth quarter of 2009, the Corporation acquired Baylis Medical Companys pain management business (Baylis). The Corporations Health Care business has been the exclusive distributor of these pain management products in the U.S. since 2001. The excess of the purchase price over the fair values of assets and liabilities acquired resulted in recognition of goodwill of $19million, the majority of which is deductible for income tax purposes. During the fourth quarter of 2009, the Corporation acquired I-Flow Corporation (I-Flow), a healthcare company that develops and markets drug delivery systems and products for post-surgical pain relief and surgical site care, for $262million, net of cash acquired. The excess of the purchase price over the fair values of assets and liabilities acquired resulted in recognition of goodwill of $153million, none of which is deductible for income tax purposes. I-Flows net sales since the acquisition date recognized by the Corporation were 1percent of the Health Care business segment net sales in 2009. The acquisition accounting for Jackson has been completed, and substantially completed for Baylis and I-Flow, with finalization expected in the first quarter of 2010. The Baylis and I-Flow acquisitions are consistent with the Corporations global business plan strategy to invest in the higher-growth, higher-margin medical device market. During the first quarter of 2008, the Corporation acquired a personal care business in Trinidad and Tobago. During the second quarter of 2008, the Corporation acquired the remaining 50 percent interest in its South African subsidiary, Kimberly-Clark of South Africa (Pty.) Limited. During third quarter 2008, the Corporation acquired the remaining 40 percent interest in its Chilean subsidiary, Kimberly-Clark Chile, S.A. The cost of these acquisitions totaled approximately $98million. The allocation of the purchase price to the

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Debt	Note 7.Debt Long-term debt is comprised of the following: Weighted- Average Interest Rate Maturities December31 2009 2008 (Millions of dollars) Notes and debentures 5.56 % 20102038 $ 4,483 $ 4,514 Industrial development revenue bonds 0.35 % 20152037 280 280 Bank loans and other financings in various currencies 2.73 % 20102031 532 765 Total long-term debt 5,295 5,559 Less current portion 503 677 Long-term portion $ 4,792 $ 4,882 Fair value of total long-term debt at December31, 2009 and 2008 was approximately $5.8billion and $5.9billion, respectively. Fair values were estimated based on quoted prices for financial instruments for which all significant inputs were observable, either directly or indirectly. Scheduled maturities of long-term debt for the next five years are $503million in 2010, $434million in 2011, $411million in 2012, $506million in 2013 and $104million in 2014. During the fourth quarter of 2008, the Corporation issued $500million 7.5% Notes due November1, 2018. The Corporation used the net proceeds to reduce borrowings under its commercial paper program. During the third quarter of 2007, the Corporation issued $450million Floating Rate Notes due July30,2010; $950million 6.125% Notes due August1, 2017; and $700million 6.625% Notes due August1, 2037. The Corporation used the net proceeds from the issuance of these notes primarily to fund an accelerated share repurchase agreement and to repay a portion of long-term debt. During the fourth quarter of 2006, the Corporation issued $200million of dealer remarketable securities that have a final maturity in 2016. The remarketing provisions of these debt instruments require that each year the securities either be remarketed by the dealer or repaid by the Corporation. In the fourth quarter of 2009, the dealer exercised its option to remarket the securities for another year. Similar to the remarketing in 2008, the dealer remarketed the securities to a wholly-owned subsidiary of the Corporation, which intends to hold them until the next remarketing date in the fourth quarter of 2010. The investment in these securities by the subsidiary and the Corporations debt obligation for these securities are eliminated in consolidation. At December31, 2009, the fair value of the dealers option to remarket the securities each year through 2016 is estimated to be $12 million. The Corporation would be obligated to pay the dealer the fair value of its option in the event the securities are not remarketed for any reason other than the dealers election not to remarket or the failure of the dealer to successfully remarket the securities if the conditions to a remarketing are satisfied. Management does not expect this contingency to materialize. At December31, 2009, the Corporation had a $1.33 billion revolving credit facility that is scheduled to expire in September 2012. Under this arrangement, the revolving credit facility may be increased to $1.77billion. The Corp

Redeemable Preferred and Common

Redeemable Preferred and Common Securities of Subsidiaries
	12 Months Ended Dec. 31, 2009 USD / shares
Redeemable Preferred and Common Securities of Subsidiaries	Note 8.Redeemable Preferred and Common Securities of Subsidiaries In February 2001, the Corporation and a non-affiliated third party entity (the Third Party) formed a Luxembourg-based financing subsidiary. The Corporation is the primary beneficiary of the subsidiary and, accordingly, consolidates the subsidiary in the accompanying Consolidated Financial Statements. In December 2007, the contractual arrangements among the Corporation, the Third Party and the subsidiary were restructured. In conjunction with the restructuring, the Third Party invested an additional $172 million in the subsidiary. Following the restructuring, the Third Party has investments in two classes of voting-preferred securities issued by the subsidiary (the Preferred Securities). The two classes of Preferred Securities, ClassA-1 and ClassA-2, have a par value of $500 million each for an aggregate of $1 billion. The Preferred Securities represent 98 percent of the voting power of the subsidiary. The ClassA-1 and ClassA-2 Preferred Securities accrue a fixed annual rate of return of 5.074 percent and 5.417 percent, respectively, which is paid on a quarterly basis. Prior to the restructuring, the annual rate of return on preferred securities of the subsidiary held by the Third Party accrued but was not currently payable. The ClassA-1 Preferred Securities are redeemable by the subsidiary in December 2011 and on each 7-year anniversary thereafter, at par value plus any accrued but unpaid return. The ClassA-2 Preferred Securities are redeemable in December 2014 and on each 7-year anniversary thereafter, at par value plus any accrued but unpaid return. The subsidiary also has issued voting-preferred and common securities to the Corporation for total cash proceeds of $500 million. These securities are entitled to a combined two percent vote, and the common securities are entitled to all of the residual equity after satisfaction of the preferred interests. Approximately 98 percent of the total cash contributed to the subsidiary has been loaned to the Corporation. These long-term loans bear fixed annual interest rates. The funds remaining in the financing subsidiary are invested in equity-based exchange-traded funds. The preferred and common securities of the subsidiary held by the Corporation and the intercompany loans have been eliminated in the Consolidated Financial Statements. The return on the Preferred Securities is included in net income attributable to noncontrolling interests in the Consolidated Income Statement. The Preferred Securities, which have an estimated fair value of $1.087billion at December31, 2009, are included in Redeemable Preferred and Common Securities of Subsidiaries on the Consolidated Balance Sheet. The Preferred Securities are not traded in active markets.Accordingly, their fair values were calculated using a floating rate pricing model that compares the stated spread to the fair value spread to determine the price at which each of the financial instruments should trade.The model uses the following inputs to calculate fair values: face value, current LIBOR rate, fair value spread, stated spread, maturity date and interest payment

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation	Note 9.Stock-Based Compensation The Corporation has a stock-based Equity Participation Plan and an Outside Directors Compensation Plan (the Plans), under which it can grant stock options, restricted shares and restricted share units to employees and outside directors. As of December31, 2009, the number of shares of stock available for grants under the Plans aggregated 14.9million shares. Stock options are granted at an exercise price equal to the market value of the Corporations common stock on the date of grant, and they have a term of 10years. Stock options granted to employees in the U.S. 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. Options granted to certain non-U.S. employees cliff vest at the end of three or four years. Restricted shares, time-vested restricted share units and performance-based restricted share units granted to employees are valued at the closing market price of the Corporations common stock on the grant date and generally vest over three years. The number of performance-based restricted 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 the Corporations 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 the Corporations Board. At the time stock options are exercised or restricted shares and restricted share units become payable, common stock is issued from the Corporations accumulated treasury shares. Cash dividends are paid on restricted shares, and cash dividends or dividend equivalents are paid or credited in share equivalents on restricted share units, on the same date and at the same rate as dividends are paid on the Corporations common stock. These cash dividends and dividend equivalents, net of estimated forfeitures, are charged to retained earnings. Stock-based compensation costs of $86million, $47million and $63 million and related deferred income tax benefits of approximately $28million, $15million and $20million were recognized for 2009, 2008 and 2007, 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 the Corporations common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Estimated forfeitures are based on historical d

Employee Postretirement Benefit

Employee Postretirement Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Postretirement Benefits	Note 10.Employee Postretirement Benefits Pension Plans Substantially all regular employees in North America and the U.K. are covered by defined benefit pension plans (the Principal Plans) and/or defined contribution retirement plans. Certain other subsidiaries have defined benefit pension plans or, in certain countries, termination pay plans covering substantially all regular employees. The funding policy for the qualified defined benefit plans in NorthAmerica and the defined benefit plans in the U.K. 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. Funding for the remaining defined benefit plans outside the U.S. is based on legal requirements, tax considerations, investment opportunities, and customary business practices in these countries. In 2009, the Corporation took action with respect to its U.S. defined benefit pension and supplemental defined benefit plans to provide that no future compensation and benefit service will be accrued under these plans, other than for certain employees subject to collective bargaining agreements, for plan years after December31, 2009 (U.S. DB Pension Freeze). The U.S. DB Pension Freeze resulted in a pension curtailment charge aggregating $21million in 2009 due to the write-off of applicable unamortized prior service costs. As a result of the curtailment, plan assets and projected benefit obligations were required to be remeasured as of the curtailment date. The remeasurement decreased the projected benefit obligations by approximately $320million. In addition, the average remaining life expectancy of inactive participants rather than the average remaining service lives of active employees must be used in the amortization of actuarial gains and losses as a result of the freeze. Other Postretirement Benefit Plans Substantially all U.S. retirees and employees are covered by unfunded health care and life insurance benefit plans. Certain benefits are based on years of service and/or age at retirement. The plans are principally noncontributory for employees who were eligible to retire before 1993 and contributory for most employees who retire after 1992, and the Corporation provides no subsidized benefits to most employees hired after 2003. In the U.S., health care benefit costs are capped and indexed by 3 percent annually for certain employees retiring on or before April1, 2004. The future cost for retiree health care benefits is limited to a defined fixed cost based on the years of service for certain employees retiring after April1, 2004. The annual increase in the consolidated weighted-average health care cost trend rate is expected to be 7.1percent in 2010 and 2011 and to decline to 5.0percent in 2015 and thereafter. Summarized financial information about postretirement plans, excluding defined contribution retirement plans, is presented below: Pension Benefits Other Benefits Year Ended December 31 2009 2008 2009 2008 (Millions of dollars) Chan

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity	Note 11.Stockholders Equity Effective January1, 2009, as required, the following changes were made with respect to the classification of noncontrolling interests (formerly minority owners interest in subsidiaries).In addition, prior year amounts in the Consolidated Financial Statements have been recast to conform to the new requirements. Noncontrolling interests, which are not redeemable at the option of the noncontrolling interests, were reclassified from the mezzanine to equity, separate from the parents stockholders equity, in the Consolidated Balance Sheet.Common securities, redeemable at the option of the noncontrolling interest and carried at redemption values of approximately $41million and $35million as of December31, 2009 and 2008, respectively, are classified in a line item combined with redeemable preferred securities of subsidiary in the Consolidated Balance Sheet. Consolidated net income was recast to include net income attributable to both the Corporation and noncontrolling interests. Set forth below are reconciliations for each of the three years ending December31, 2009 of the carrying amount of total stockholders equity from the beginning of the period to the end of the period and an allocation of this equity to the stockholders of the Corporation and Noncontrolling Interests. In addition, because a portion of net income is allocable to redeemable securities of subsidiaries, which is classified outside of stockholders equity, each of the reconciliations displays the amount of net income allocable to redeemable securities of subsidiaries. Comprehensive Income Stockholders Equity Attributable to Redeemable Securitiesof Subsidiaries The Corporation Noncontrolling Interests (Millions of dollars) Balance at December31, 2006 $ 6,098 $ 404 $ 812 Comprehensive Income: Net income $ 1,951 1,823 85 43 Other comprehensive income, net of tax: Unrealized translation 377 365 12 Employee postretirement benefits 266 266 Other 10 10 Total Comprehensive Income $ 2,604 Stock-based awards 345 Income tax benefits on stock-based compensation 32 Shares repurchased (2,811 ) Recognition of stock-based compensation 63 Dividends declared (933 ) (30 ) Additional investment in subsidiary and other (5 ) 171 Return on noncontrolling interests (3 ) Adoption of uncertain tax positions accounting standard (34 ) Balance at December31, 2007 $ 5,224 $ 463 $ 1,026 Comprehensive Income: Net income $ 1,829 1,690 82 57 Other comprehensive income, net of tax: Unrealized translation (9

Objectives and Strategies for U

Objectives and Strategies for Using Derivatives
	12 Months Ended Dec. 31, 2009 USD / shares
Objectives and Strategies for Using Derivatives	Note 12.Objectives and Strategies for Using Derivatives As a multinational enterprise, the Corporation is exposed to risks, such as changes in foreign currency exchange rates, interest rates, commodity prices and certain investments in its defined benefit pension plans. A variety of practices are employed to manage these risks, including operating and financing activities and, where deemed appropriate, the use of derivative instruments. The Corporations policies allow the use of derivatives for risk management purposes and prohibit their use for speculation. The Corporations policies also prohibit the use of any leveraged derivative instrument. Foreign currency derivative instruments, interest rate swaps and commodity hedging contracts are entered into with major financial institutions. On the date the derivative contract is entered into, the Corporation formally designates certain derivatives either as cash flow, fair value or net investment hedges (each discussed below), including 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 to earnings when they occur. Set forth below is a summary of the fair values of the Corporations derivative instruments classified by the risks they are used to manage as of December31, 2009. Assets Liabilities 2009 2008 2009 2008 (Millions of dollars) Foreign currency exchange risk $ 16 $ 114 $ 84 $ 32 Interest rate risk 41 3 Commodity price risk 1 3 19 Total $ 58 $ 117 $ 87 $ 51 Foreign Currency Exchange Risk Management The Corporation has a centralized U.S. dollar functional currency international treasury operation (In-House Bank) that manages foreign currency exchange risks by netting, on a daily basis, exposures to recorded non-U.S. dollar assets and liabilities and entering into derivative instruments with third parties whenever the net exposure in any single currency exceeds predetermined limits. These derivative instruments are not designated as hedging instruments. Changes in the fair value of these instruments are recorded in earnings when they occur. The In-House Bank also records the gain or loss on the translation of its non-U.S. dollar denominated monetary assets and liabilities in earnings. Consequently, the effect on earnings from the use of these non-designated derivatives is substantially neutralized by the recorded transactional gains and losses. The In-House Banks daily notional derivative positions with third parties averaged approximately $1.3 billion in 2009 and its average net exposure for the period was $1.1 billion. The In-House Bank used eight counterparties for its foreign exchange derivative contracts. The Corporation enters into derivative instruments to hedge a portion of the net foreign currency exposures of its non-U.S. operations principally for their forecasted purchases of pulp, which

Real Estate Entities

Real Estate Entities
	12 Months Ended Dec. 31, 2009 USD / shares
Real Estate Entities	Note 13.Real Estate Entities The Corporation participates in the U.S. affordable housing and historic renovation real estate markets. Investments in these markets are encouraged by laws enacted by the U.S. Congress and related federal income tax rules and regulations. Accordingly, these investments generate income tax credits and tax losses that are used to reduce the Corporations income tax liabilities. The Corporation invested in these markets through (i)investments in wholly-owned or majority-owned entities, (ii)limited liability companies as a nonmanaging member and (iii)investments in various funds in which the Corporation is one of many noncontrolling investors. The entities borrow money from third parties, generally on a nonrecourse basis and invest in and own various real estate projects. The Corporation consolidates certain real estate entities because it has voting control. The assets of these entities are classified principally as property, plant and equipment and have a carrying amount aggregating $136million at December31,2009, that serves as collateral for the obligations of these ventures. The obligations have a carrying amount aggregating $85million, of which $32million is included in debt payable within one year and $53million is included in long-term debt. The fair value of these obligations is estimated at $82million at December31, 2009. Neither the creditors nor the other beneficial interest holders of these consolidated ventures have recourse to the general credit of the Corporation, except for $8million of permanent financing debt, which is guaranteed by the Corporation. The Corporation also consolidates certain other real estate entities because it is the primary beneficiary. The assets of these entities are classified principally as property, plant and equipment and have a carrying amount aggregating $8 million at December31,2009 that serves as collateral for the obligation of these ventures. The obligations have a carrying amount aggregating $6million, of which $5million is included in debt payable within one year and $1million is included in long-term debt. The fair value of these obligations is estimated at $6million at December31, 2009. The Corporation determined it was the primary beneficiary of these variable interests based on quantitative and qualitative analyses, which indicated that the Corporation had the majority of the cash flow variability in these entities. As of December31, 2009, the Corporation has earned income tax credits totaling approximately $92million on its consolidated real estate entities. The Corporation has significant interests in other variable interest real estate entities in which it is not the primary beneficiary based on both quantitative and qualitative analyses, as appropriate. The Corporation has made noncontractual cash infusions to certain of the entities aggregating $7 million principally to provide cash flow to support debt payments. The Corporation accounts for its interests in its nonconsolidated real estate entities by the equity method of accounting, and has accounted for the related income tax credits and other tax benefits as a reduction in its income tax

Leases and Commitments

Leases and Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Leases and Commitments	Note 14.Leases and Commitments Leases The Corporation has 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 as of December31, 2009 are as follows: Millions Year Ending December 31: 2010 $ 169 2011 137 2012 115 2013 95 2014 86 Thereafter 187 Future minimum obligations $ 789 Certain operating leases contain residual value guarantees under which, if the leased property is not purchased from the lessor at the end of the lease term, the Corporation will be liable to the lessor for the shortfall, if any, between the proceeds from the sale of the property and an agreed value. At December31, 2009, the maximum amount of the residual value guarantee was approximately $13million. Management expects the proceeds from the sale of the properties under the operating leases will exceed the agreed values. Consolidated rental expense under operating leases was $284million, $316million and $271million in 2009, 2008 and 2007, respectively. Purchase Commitments The Corporation has entered into long-term contracts for the purchase of pulp and utilities, principally electricity. Commitments under these contracts based on current prices are approximately $693million in 2010, $524million in 2011, $326million in 2012, $66million in 2013 and $65million in 2014. Total commitments beyond the year 2014 are $134million. Although the Corporation is primarily liable for payments on the above-mentioned leases and purchase commitments, its exposure to losses, if any, under these arrangements is not material.

Contingencies and Legal Matters

Contingencies and Legal Matters
	12 Months Ended Dec. 31, 2009 USD / shares
Contingencies and Legal Matters	Note 15.Contingencies and Legal Matters Contingency One of the Corporations North American tissue mills has an agreement to provide its local utility company a specified amount of electric power for each of the next seven years. In the event that the mill were to be shut down, the Corporation would be required to continue to operate the power generation facility on behalf of its owner, the local utility company. The net present value of the cost to fulfill this agreement as of December31, 2009 is estimated to be approximately $65million. Litigation The following is a brief description of certain legal and administrative proceedings to which the Corporation or its subsidiaries is a party or to which the Corporations or its subsidiaries properties are subject. In managements opinion, none of the legal and administrative proceedings described below, individually or in the aggregate, is expected to have a material adverse effect on the Corporations business, financial condition, results of operations or liquidity. Environmental Matters The Corporation has been named as a potentially responsible party under the provisions of the federal Comprehensive Environmental Response, Compensation and Liability Act, or analogous state statutes, at a number of waste disposal sites, none of which, individually or in the aggregate, in managements opinion, is likely to have a material adverse effect on the Corporations business, financial condition, results of operations or liquidity. In May 2007, a wholly-owned subsidiary of the Corporation was served a summons in Pennsylvania statecourt by the Delaware County Regional Water Quality Authority (Delcora).Also in May 2007, Delcora initiated an administrative action against the Corporation.Delcora is a public agency that operates a sewerage system and a wastewater treatment facility serving industrial and municipal customers, including Kimberly-Clarks Chester Mill.Delcora also regulates the discharge of wastewater from the Chester Mill. Delcora has alleged in the summons and the administrative action that the Corporation underreported the quantity of effluent discharged to Delcora from the Chester Mill for several years due to an inaccurate effluent metering device and owes additional amounts.The Corporations action for declaratory judgment in the Federal District Court for the Eastern District of Pennsylvania was dismissed in December 2007 on grounds of abstention.The Corporation appealed this dismissal to the Third Circuit Court of Appeals.The Third Circuit directed the parties to mediation, which during the third quarter of 2008 resulted in a procedural agreement to appoint a neutral and qualified hearing officer.As a result of this arrangement with Delcora, the Corporation has dismissed its appeal to the Third Circuit.The Corporation continues to believe that Delcoras allegations lack merit and is vigorously defending against Delcoras actions.In managements opinion, this matter is not expected to have a material adverse effect on the Corporations business, financial condition, results of operations or liquidity.

Synthetic Fuel Partnerships

Synthetic Fuel Partnerships
	12 Months Ended Dec. 31, 2009 USD / shares
Synthetic Fuel Partnerships	Note 16.Synthetic Fuel Partnerships The Corporation had minority interests in two synthetic fuel partnerships. Although these partnerships were VIEs, the Corporation was not the primary beneficiary, and the entities were not consolidated. Synthetic fuel produced by the partnerships was eligible for synthetic fuel tax credits through 2007; the partnerships were dissolved in 2008 at no cost to the Corporation. In addition, there were tax deductions for pretax losses generated by the partnerships that were reported as nonoperating expense in the Consolidated Income Statement. Both the credits and tax deductions reduced the Corporations income tax expense. The effects of these credits and deductions are shown in the following table: YearEndedDecember31,2007 (Millionsofdollars) Nonoperating expense $ (67 ) Tax credits $60 Tax benefit of nonoperating expense 21 81 Net synthetic fuel benefit $ 14 Per share basisdiluted $ .03 The effects of the credits are shown separately in the reconciliation of the U.S. statutory rate to its effective income tax rate in Note 17.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes	Note 17.Income Taxes An analysis of the provision for income taxes follows: YearEndedDecember31 2009 2008 2007 (Millions of dollars) Current income taxes: United States $ 313 $ 150 $ 296 State (5 ) 16 50 Other countries 297 301 294 Total 605 467 640 Deferred income taxes: United States 99 119 (73 ) State (5 ) 17 9 Other countries 47 15 (39 ) Total 141 151 (103 ) Total provision for income taxes $ 746 $ 618 $ 537 Income before income taxes is earned in the following tax jurisdictions: Year Ended December31 2009 2008 2007 (Millions of dollars) United States $ 1,643 $ 1,261 $ 1,456 Other countries 933 1,028 862 Total income before income taxes $ 2,576 $ 2,289 $ 2,318 Deferred income tax assets (liabilities) are composed of the following: December31 2009 2008 (Millionsofdollars) Net current deferred income tax asset attributable to: Accrued expenses $ 102 $ 126 Pension, postretirement and other employee benefits 86 77 Inventory (45 ) (52 ) Other 8 13 Valuation allowances (15 ) (33 ) Net current deferred income tax asset $ 136 $ 131 Net current deferred income tax liability attributable to: Other payables $ (16 ) $ 1 Other (15 ) (15 ) Net current deferred income tax liability included in accrued expenses $ (31 ) $ (14 ) Net noncurrent deferred income tax asset attributable to: Income tax loss carryforwards $ 225 $ 244 Foreign tax credits and loss carryforwards 29 383 State tax credits 151 97 Pension and other postretirement benefits 228 835 Accumulated depreciation (86 ) (656 ) Installment sales (11 ) (189 ) Other 48 (3 ) Valuation allowances (211 ) (286 ) Net noncurrent deferred income tax asset included in other assets $ 373 $ 425 Net noncurrent deferred income tax liability attributable to: Accumulated depreciation $ (976 ) $ (255 ) Pension, postretirement and other employee benefits 546 73 Foreign tax credits and loss carryforwards 462 Installment sales (180 ) Other (211 ) (11 ) Valuation allowances (18 ) Net noncurrent deferred income tax liability $ (377 ) $ (193 ) Classification of the components of noncurrent deferred tax assets and liabilities is determined by the Corporations net tax position by tax

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share	Note 18.Earnings Per Share A reconciliation of the average number of common shares outstanding used in the basic and diluted EPS computations follows: Average Common SharesOutstanding 2009 2008 2007 (Millions) Average shares outstanding 414.6 416.7 441.3 Participating securities 1.5 1.8 1.9 Basic 416.1 418.5 443.2 Dilutive effect of stock options .4 .9 2.8 Dilutive effect of restricted share and restricted share unit awards .3 .2 .1 Dilutive effect of accelerated share repurchase program .2 Diluted 416.8 419.6 446.3 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 are summarized below: Description 2009 2008 2007 Average number of share equivalents (millions) 21.8 15.6 2.8 Weighted-average exercise price $ 64.12 $ 66.31 $ 72.00 Expiration date of options 2009to2019 2008to2018 2007to2017 Options outstanding at year-end (millions) 20.3 16.0 3.9 The number of common shares outstanding as of December31, 2009, 2008 and 2007 was 416.9million, 413.6million and 420.9million, respectively.

Subsequent Events

Subsequent Events
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Events	Note 19.Subsequent Events Because the cumulative inflation in Venezuela for the preceding three years was more than 100percent based on the Consumer Price Index/National Consumer Price Index, effective January1, 2010, the Corporation determined that results for this operation would be accounted for as highly inflationary. On January8, 2010, the Venezuelan government devalued its currency and established a multiple exchange rate structure. As a result of the devaluation, the Corporation anticipates recording a one-time after tax charge to remeasure the subsidiarys local currency net monetary asset position into U.S. dollars. The Corporation is currently evaluating the rate at which the devaluation will be measured and 2010 results will be translated into U.S. dollars. The Corporation estimates the range of the one-time after-tax impact of the devaluation to be $60 million to $90 million, based on a rate of 4.3 to 6.0 bolivars per U.S. dollar. This charge will be recorded in the first quarter of 2010. At the stated range of rates, the Corporation estimates that the ongoing effect of the devaluation will not be material to the Corporations 2010 net income.

Business Segment and Geographic

Business Segment and Geographic Data Information
	12 Months Ended Dec. 31, 2009 USD / shares
Business Segment and Geographic Data Information	Note 20.Business Segment and Geographic Data Information The Corporation is organized into operating segments based on product groupings. These operating segments have been aggregated into four reportable global business segments: Personal Care; Consumer Tissue; K-C Professional Other; and Health Care. The reportable segments were determined in accordance with how the Corporations executive managers develop and execute the Corporations global strategies to drive growth and profitability of the Corporations worldwide Personal Care, Consumer Tissue, K-C Professional Other and Health Care operations. 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; income and expense not associated with the business segments; and the costs of corporate decisions related to the strategic cost reductions described in Note5. Corporate Other Assets include the Corporations investments in equity affiliates, finance operations and real estate entities, and deferred tax assets. The accounting policies of the reportable segments are the same as those described in Note1. The principal sources of revenue in each global business segment are described below: The Personal Care segment manufactures and markets disposable diapers, training and youth pants and swimpants; baby wipes; feminine and incontinence care products; and related products. Products in this segment are primarily for household use and are sold under a variety of brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, Poise and other brand names. The Consumer Tissue segment manufactures and markets facial and bathroom tissue, paper towels, napkins and related products for household use. Products in this segment are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle, Page and other brand names. The K-C Professional Other segment manufactures and markets facial and bathroom tissue, paper towels, napkins, wipers and a range of safety products for the away-from-home marketplace. Products in this segment are sold under the Kimberly-Clark, Kleenex, Scott, WypAll, Kimtech, KleenGuard, Kimcare and Jackson brand names. The Health Care segment manufactures and markets disposable health care products such as surgical drapes and gowns, infection control products, face masks, exam gloves, respiratory products, pain management products and other disposable medical products. Products in this segment are sold under the Kimberly-Clark, Ballard, ON-Q and other brand names. Net sales to Wal-Mart Stores, Inc. were approximately 13percent in 2009, and approximately 14percent in 2008 and 2007, primarily in the personal care and consumer tissue businesses. Information concerning consolidated operations by business segment and geographic area, as well as data for equity compa

Supplemental Data

Supplemental Data (Millions of dollars)
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Data (Millions of dollars)	Note 21.Supplemental Data (Millions of dollars) December31 Supplemental Income Statement Data 2009 2008 2007 Advertising expense $ 559 $ 512 $ 468 Research expense 301 297 277 Foreign currency transaction losses, net 110 18 13 Supplemental Balance Sheet Data December31 Summary of Accounts Receivable, net 2009 2008 Accounts Receivable: From customers $ 2,290 $ 2,203 Other 365 362 Less allowance for doubtful accounts and sales discounts (89 ) (73 ) Total $ 2,566 $ 2,492 December31 2009 2008 Summary of Inventories LIFO Non- LIFO Total LIFO Non- LIFO Total Inventories by Major Class: At the lower of cost determined on the FIFO or weighted-average cost methods or market: Raw materials $ 137 $ 282 $ 419 $ 150 $ 367 $ 517 Work in process 177 111 288 246 133 379 Finished goods 573 685 1,258 758 832 1,590 Supplies and other 277 277 262 262 887 1,355 2,242 1,154 1,594 2,748 Excess of FIFO or weighted-average cost over LIFO cost (209 ) (209 ) (255 ) (255 ) Total $ 678 $ 1,355 $ 2,033 $ 899 $ 1,594 $ 2,493 December31 Summary of Property, Plant and Equipment, net 2009 2008 Property, Plant and Equipment Land $ 211 $ 195 Buildings 2,686 2,486 Machinery and equipment 13,480 12,509 Construction in progress 557 533 16,934 15,723 Less accumulated depreciation (8,901 ) (8,056 ) Total $ 8,033 $ 7,667 December31 Summary of Accrued Expenses 2009 2008 Accrued advertising and promotion $ 415 $ 351 Accrued salaries and wages 411 354 Accrued quantity discounts 345 170 Other 893 848 Total $ 2,064 $ 1,723 Supplemental Cash Flow Statement Data Summary of Cash Flow Effects of Decrease (Increase) in Operating Working Capital(a) Year Ended December31 2009 2008 2007 Accounts receivable $ (20 ) $ 148 $ (192 ) Inventories 523 (45 ) (439 ) Prepaid expenses (1 ) 13 (35 ) Trade accounts payable 278 (43 ) 152 Accrued expenses 201 (185 ) 185 Accrued income taxes (27 ) (96 ) (57 ) Derivatives 116 (65 ) 9 Currency 35 (62 ) 47 Decrease (increase) in operating

Unaudited Quarterly Data

Unaudited Quarterly Data
	12 Months Ended Dec. 31, 2009 USD / shares
Unaudited Quarterly Data	Note 22.Unaudited Quarterly Data 2009 2008 Fourth Third Second First Fourth Third Second First (Millions of dollars, except per share amounts) Net sales $ 4,982 $ 4,913 $ 4,727 $ 4,493 $ 4,598 $ 4,998 $ 5,006 $ 4,813 Gross profit 1,666 1,727 1,573 1,454 1,455 1,463 1,484 1,456 Operating profit 717 871 609 628 623 610 650 664 Net income attributable to the Corporation 492 582 403 407 419 413 417 441 Per share basis: Basic 1.18 1.40 .97 .98 1.01 .99 .99 1.05 Diluted 1.17 1.40 .97 .98 1.01 .99 .99 1.04 Cash dividends declared per share .60 .60 .60 .60 .58 .58 .58 .58 Market price per share: High 67.03 60.48 54.31 53.90 66.37 66.66 65.88 69.69 Low 57.67 51.71 45.19 43.05 50.27 50.42 59.53 62.16 Close 63.71 58.98 52.43 46.11 52.74 64.84 59.78 64.55

SCHEDULE II VALUATION AND QUALI

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS	KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007 (Millions of dollars) Description Balanceat Beginning Of Period Additions Deductions Chargedto Costs and Expenses Chargedto Other Accounts(a) Write-Offs and Reclassifications Balanceat Endof Period December31, 2009 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 52 $ 22 $ 7 $ 13 (b) $ 68 Allowances for sales discounts 21 272 1 273 (c) 21 December31, 2008 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 51 $ 16 $ (7 ) $ 8 (b) $ 52 Allowances for sales discounts 22 269 (1 ) 269 (c) 21 December31, 2007 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 39 $ 15 $ 4 $ 7 (b) $ 51 Allowances for sales discounts 20 252 1 251 (c) 22 (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 Balanceat Beginning of Period Chargedto Costs and Expenses(a) Chargedto Other Accounts Deductions(b) Balanceat End of Period December31, 2009 Deferred Taxes Valuation Allowance $ 319 $ (84 ) $ $ (9 ) $ 244 December31, 2008 Deferred Taxes Valuation Allowance $ 319 $ 13 $ $ 13 $ 319 December31, 2007 Deferred Taxes Valuation Allowance $ 371 $ (63 ) $ $ (11 ) $ 319 (a) Includes decreasing foreign tax credit valuation allowances related to taxes provided on equity affiliates unremitted earnings of $(54)million in 2009. (b) Includes the net currency effects of translating valuation allowances at current rates of exchange, totaling $(9) million in 2009, $13million in 2008, and $(12)million in 2007.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 12, 2010	Jun. 30, 2009
Trading Symbol	KMB
Entity Registrant Name	KIMBERLY CLARK CORP
Entity Central Index Key	0000055785
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		416,305,736
Entity Public Float			$21,700,000,000