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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1998(a) 1997(b) 1996 1995(c) 1994
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Consolidated Companies
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Income before income taxes $ 1,626.1 $1,187.5 $2,002.3 $104.4 $1,147.9
Interest expense 198.7 164.8 186.7 245.5 270.5
Interest factor in rent expense 52.3 49.8 45.7 36.1 41.9
Amortization of capitalized interest 9.4 9.0 8.6 9.7 9.2
Equity Affiliates
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Share of 50%-owned:
Income before income taxes 47.6 51.2 49.3 40.6 48.0
Interest expense 9.9 7.1 9.5 18.5 15.3
Interest factor in rent expense 1.2 .7 .7 .8 .7
Amortization of capitalized interest .5 .6 .7 .7 .6
Distributed income of less than
50%-owned 98.1 62.5 48.4 25.1 41.4
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Earnings $ 2,043.8 $1,533.2 $2,351.9 $481.4 $1,575.5
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Consolidated Companies
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Interest expense $ 198.7 $164.8 $186.7 $245.5 $270.5
Capitalized interest 12.4 17.0 13.9 8.8 20.6
Interest factor in rent expense 52.3 49.8 45.7 36.1 41.9
Equity Affiliates
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Share of 50%-owned:
Interest and capitalized interest 10.0 7.5 9.5 18.9 15.4
Interest factor in rent expense 1.2 .7 .7 .8 .7
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Fixed charges $ 274.6 $239.8 $256.5 $310.1 $349.1
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Ratio of earnings to fixed charges 7.44 6.39 9.17 1.55 4.51
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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 Company 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) Income before income taxes for consolidated companies and the ratio of
earnings to fixed charges include pretax charges of $108.8 million for the
1998 Charge, $95.6 million for the write-down of certain intangible and other
assets and $123.2 million for the charge for facility consolidations.
Excluding these charges, the ratio of earnings to fixed charges was 8.64.
(b) Income before income taxes for consolidated companies and the ratio of
earnings to fixed charges include a pretax charge of $701.2 million for the
1997 Charge. Excluding the 1997 Charge, the ratio of earnings to fixed
charges was 9.32.
(c) Income before income taxes for consolidated companies and the ratio of
earnings to fixed charges include $1,440.0 million for restructuring and other
unusual charges. Excluding these charges, the ratio of earnings to fixed
charges was 6.20.