Exhibit 12
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLAR AMOUNTS IN MILLIONS)
Year Ended December 31
----------------------------------------------------------------------
1997 1996 1995 1994 1993
- - ----------------------------------------------------------------------------------------------------------------------
Consolidated Companies
Income before taxes (a) .................... $ 1,187.5 $ 2,002.3 $ 104.4 $ 1,147.9 $ 492.4
Interest expense ........................... 164.8 186.7 245.5 270.5 249.5
Interest factor in rent expense............. 49.8 45.7 36.1 41.9 42.7
Amortization of capitalized interest........ 9.0 8.6 9.7 9.2 8.1
Equity Affiliates
Share of 50%-owned:
Income before income taxes ............... 51.2 49.3 40.6 48.0 35.0
Interest expense.......................... 7.1 9.5 18.5 15.3 13.7
Interest factor in rent expense........... .7 .7 .8 .7 .8
Amortization of capitalized interest...... .6 .7 .7 .6 .6
Distributed income of less than
50%-owned ................................ 62.5 48.4 25.1 41.4 41.4
----------- ---------- -------- ----------- ---------
Earnings ..................................... $ 1,533.2 $ 2,351.9 $ 481.4 $ 1,575.5 $ 884.2
=========== ========== ======== =========== =========
Consolidated Companies
Interest expense ........................... $ 164.8 $ 186.7 $ 245.5 $ 270.5 $ 249.5
Capitalized interest ....................... 17.0 13.9 8.8 20.6 28.4
Interest factor in rent expense ............ 49.8 45.7 36.1 41.9 42.7
Equity Affiliates
Share of 50%-owned:
Interest and capitalized interest......... 7.5 9.5 18.9 15.4 13.8
Interest factor in rent expense .......... .7 .7 .8 .7 .8
----------- ---------- -------- ----------- ---------
Fixed charges ................................ $ 239.8 $ 256.5 $ 310.1 $ 349.1 $ 335.2
=========== ========== ======== =========== =========
Ratio of earnings to fixed charges(a) 6.39 9.17 1.55 4.51 2.64
=========== ========== ======== =========== =========
Note: The Corporation has provided Midwest Express Airlines, Inc., its
former commercial airline subsidiary, with a five-year $20
million secondary revolving credit facility for use in the event
Midwest Express does not have amounts available for borrowing
under its revolving bank credit facility. No drawings have been
made on these facilities. S.D. Warren was sold on December 20,
1994, and is reflected as a discontinued operation in the
consolidated income statement. 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.
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) The ratio of earnings to fixed charges includes pretax charges of
$701.2 million in 1997, $1,440.0 million in 1995 and $378.9
million in 1993 for the 1997 Charge and restructuring and other
unusual charges in 1995 and 1993. Excluding these charges, the
ratio of earnings to fixed charges was 9.32 in 1997, 6.20 in 1995
and 3.77 in 1993.