Exhibit No. (12)
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLAR AMOUNTS IN MILLIONS)
Year Ended December 31
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1997(a) 1998(b) 1999(c) 2000(d) 2001(e)
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Consolidated Companies
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<s> <c> <c> <c> <c> <c>
Income before income taxes. . . . . . . . $1,352.7 $1,523.3 $2,251.7 $2,436.0 $2,164.4
Interest expense. . . . . . . . . . . . . 164.8 198.7 213.1 221.8 191.6
Interest factor in rent expense . . . . . 49.8 52.3 50.5 48.6 53.5
Amortization of capitalized interest. . . 9.0 9.4 10.0 9.6 10.8
Equity Affiliates
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Share of 50%-owned:
Income before income taxes. . . . . . . 51.2 47.6 43.4 43.0 (.6)
Interest expense. . . . . . . . . . . . 7.1 9.9 8.0 7.5 5.5
Interest factor in rent expense . . . . .7 1.2 .9 .9 .8
Amortization of capitalized interest. . .6 .5 .6 .5 .2
Distributed income of less than 50%-owned 62.5 98.1 88.0 96.4 103.8
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Earnings. . . . . . . . . . . . . . . . . . $1,698.4 $1,941.0 $2,666.2 $2,864.3 $2,530.0
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Consolidated Companies
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Interest expense. . . . . . . . . . . . . $ 164.8 $ 198.7 $ 213.1 $ 221.8 $ 191.6
Capitalized interest. . . . . . . . . . . 17.0 12.4 12.9 20.9 19.6
Interest factor in rent expense . . . . . 49.8 52.3 50.5 48.6 53.5
Equity Affiliates
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Share of 50%-owned:
Interest and capitalized interest . . . 7.5 10.0 8.1 7.5 5.5
Interest factor in rent expense . . . . .7 1.2 .9 .9 .8
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Fixed Charges . . . . . . . . . . . . . . . $ 239.8 $ 274.6 $ 285.5 $ 299.7 $ 271.0
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Ratio of earnings to fixed charges. . 7.08 7.07 9.34 9.56 9.34
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<FN>
Note: The Corporation is contingently liable as guarantor, or directly liable as the
original obligor, for certain debt and lease 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.
(a) Income before income taxes for consolidated companies and the ratio of earnings to
fixed charges include the following pretax items: $478.3 million of charges for
business improvement programs and $(26.5) of a gain on an asset disposal. Excluding
these items, the ratio of earnings to fixed charges was 8.97.
(b) Income before income taxes for consolidated companies and the ratio of earnings to
fixed charges include the following pretax items: $377.8 million of charges for
business improvement programs, $42.3 million of Mobile pulp mill fees and related
severance and $(140.0) of a gain on an asset disposal. Excluding these items,
the ratio of earnings to fixed charges was 8.09.
(c) Income before income taxes for consolidated companies and the ratio of earnings to
fixed charges include the following pretax items: $47.8 million of charges for
business improvement programs, $22.6 million of business integration and other costs,
$9.0 million of Mobile pulp mill fees and related severance and $(176.7) of
gains on asset disposals. Excluding these items, the ratio of earnings to fixed
charges was 9.00.
(d) Income before income taxes for consolidated companies and the ratio of earnings to
fixed charges include the following pretax items: $24.4 million of charges for
business improvement programs, $35.1 million of business integration and other costs,
$15.2 million of litigation settlements and $(75.8) of patent settlement and
accrued liability reversal. Excluding these items, the ratio of earnings to
fixed charges was 9.55.
(e) Income before income taxes for consolidated companies and the ratio of earnings to
fixed charges include the following pretax items: $52.6 million of charges
for a North American mill closing and other write-offs, $32.5 million of charges
for a Latin American asset plan, $55.5 million of charges for business
improvement programs, $29.1 million of business integration and other costs and
$43.2 million of arbitration settlements. Excluding these items, the ratio of
earnings to fixed charges was 10.12.