|
|
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Delaware
|
|
39-0394230
|
(State or other jurisdiction of
incorporation)
|
|
(I.R.S. Employer
Identification No.)
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock
|
KMB
|
New York Stock Exchange
|
0.625% Notes due 2024
|
KMB24
|
New York Stock Exchange
|
Large Accelerated Filer
|
x
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
(Millions of dollars, except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Sales
|
|
$
|
4,640
|
|
|
$
|
4,582
|
|
|
$
|
13,867
|
|
|
$
|
13,917
|
|
Cost of products sold
|
|
3,085
|
|
|
3,166
|
|
|
9,398
|
|
|
9,722
|
|
||||
Gross Profit
|
|
1,555
|
|
|
1,416
|
|
|
4,469
|
|
|
4,195
|
|
||||
Marketing, research and general expenses
|
|
815
|
|
|
749
|
|
|
2,395
|
|
|
2,599
|
|
||||
Other (income) and expense, net
|
|
(175
|
)
|
|
(2
|
)
|
|
(166
|
)
|
|
6
|
|
||||
Operating Profit
|
|
915
|
|
|
669
|
|
|
2,240
|
|
|
1,590
|
|
||||
Nonoperating expense
|
|
(11
|
)
|
|
(30
|
)
|
|
(33
|
)
|
|
(75
|
)
|
||||
Interest income
|
|
3
|
|
|
2
|
|
|
8
|
|
|
7
|
|
||||
Interest expense
|
|
(66
|
)
|
|
(64
|
)
|
|
(198
|
)
|
|
(198
|
)
|
||||
Income Before Income Taxes and Equity Interests
|
|
841
|
|
|
577
|
|
|
2,017
|
|
|
1,324
|
|
||||
Provision for income taxes
|
|
(192
|
)
|
|
(138
|
)
|
|
(467
|
)
|
|
(380
|
)
|
||||
Income Before Equity Interests
|
|
649
|
|
|
439
|
|
|
1,550
|
|
|
944
|
|
||||
Share of net income of equity companies
|
|
31
|
|
|
23
|
|
|
91
|
|
|
80
|
|
||||
Net Income
|
|
680
|
|
|
462
|
|
|
1,641
|
|
|
1,024
|
|
||||
Net income attributable to noncontrolling interests
|
|
(9
|
)
|
|
(11
|
)
|
|
(31
|
)
|
|
(25
|
)
|
||||
Net Income Attributable to Kimberly-Clark Corporation
|
|
$
|
671
|
|
|
$
|
451
|
|
|
$
|
1,610
|
|
|
$
|
999
|
|
|
|
|
|
|
|
|
|
|
||||||||
Per Share Basis
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
1.95
|
|
|
$
|
1.30
|
|
|
$
|
4.68
|
|
|
$
|
2.86
|
|
Diluted
|
|
$
|
1.94
|
|
|
$
|
1.29
|
|
|
$
|
4.65
|
|
|
$
|
2.85
|
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
|
$
|
680
|
|
|
$
|
462
|
|
|
$
|
1,641
|
|
|
$
|
1,024
|
|
Other Comprehensive Income (Loss), Net of Tax
|
|
|
|
|
|
|
|
|
||||||||
Unrealized currency translation adjustments
|
|
(170
|
)
|
|
(79
|
)
|
|
(148
|
)
|
|
(343
|
)
|
||||
Employee postretirement benefits
|
|
16
|
|
|
22
|
|
|
38
|
|
|
101
|
|
||||
Other
|
|
2
|
|
|
3
|
|
|
(18
|
)
|
|
31
|
|
||||
Total Other Comprehensive Income (Loss), Net of Tax
|
|
(152
|
)
|
|
(54
|
)
|
|
(128
|
)
|
|
(211
|
)
|
||||
Comprehensive Income
|
|
528
|
|
|
408
|
|
|
1,513
|
|
|
813
|
|
||||
Comprehensive (income) loss attributable to noncontrolling interests
|
|
1
|
|
|
(10
|
)
|
|
(15
|
)
|
|
(14
|
)
|
||||
Comprehensive Income Attributable to Kimberly-Clark Corporation
|
|
$
|
529
|
|
|
$
|
398
|
|
|
$
|
1,498
|
|
|
$
|
799
|
|
(Millions of dollars)
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
|
||||
Current Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
416
|
|
|
$
|
539
|
|
Accounts receivable, net
|
|
2,306
|
|
|
2,164
|
|
||
Inventories
|
|
1,779
|
|
|
1,813
|
|
||
Other current assets
|
|
563
|
|
|
525
|
|
||
Total Current Assets
|
|
5,064
|
|
|
5,041
|
|
||
Property, Plant and Equipment, Net
|
|
7,158
|
|
|
7,159
|
|
||
Investments in Equity Companies
|
|
294
|
|
|
224
|
|
||
Goodwill
|
|
1,438
|
|
|
1,474
|
|
||
Other Assets
|
|
1,079
|
|
|
620
|
|
||
TOTAL ASSETS
|
|
$
|
15,033
|
|
|
$
|
14,518
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
||||
Current Liabilities
|
|
|
|
|
||||
Debt payable within one year
|
|
$
|
1,555
|
|
|
$
|
1,208
|
|
Trade accounts payable
|
|
2,942
|
|
|
3,190
|
|
||
Accrued expenses and other current liabilities
|
|
1,931
|
|
|
1,793
|
|
||
Dividends payable
|
|
354
|
|
|
345
|
|
||
Total Current Liabilities
|
|
6,782
|
|
|
6,536
|
|
||
Long-Term Debt
|
|
6,198
|
|
|
6,247
|
|
||
Noncurrent Employee Benefits
|
|
881
|
|
|
931
|
|
||
Deferred Income Taxes
|
|
506
|
|
|
458
|
|
||
Other Liabilities
|
|
540
|
|
|
328
|
|
||
Redeemable Preferred Securities of Subsidiaries
|
|
38
|
|
|
64
|
|
||
Stockholders' Equity
|
|
|
|
|
||||
Kimberly-Clark Corporation
|
|
|
|
|
||||
Preferred stock - no par value - authorized 20.0 million shares, none issued
|
|
—
|
|
|
—
|
|
||
Common stock - $1.25 par value - authorized 1.2 billion shares; issued 378.6 million shares at September 30, 2019 and December 31, 2018
|
|
473
|
|
|
473
|
|
||
Additional paid-in capital
|
|
535
|
|
|
548
|
|
||
Common stock held in treasury, at cost - 35.5 and 33.6 million shares at September 30, 2019 and December 31, 2018, respectively
|
|
(4,222
|
)
|
|
(3,956
|
)
|
||
Retained earnings
|
|
6,485
|
|
|
5,947
|
|
||
Accumulated other comprehensive income (loss)
|
|
(3,412
|
)
|
|
(3,299
|
)
|
||
Total Kimberly-Clark Corporation Stockholders' Equity
|
|
(141
|
)
|
|
(287
|
)
|
||
Noncontrolling Interests
|
|
229
|
|
|
241
|
|
||
Total Stockholders' Equity
|
|
88
|
|
|
(46
|
)
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
15,033
|
|
|
$
|
14,518
|
|
|
|
Three Months Ended September 30, 2019
|
|||||||||||||||||||||||||||||||||||||
(Millions of dollars, shares in thousands, except per share amounts)
|
|
Common Stock
Issued
|
|
Additional Paid-in Capital
|
|
Treasury Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Non-controlling Interests
|
|
Total Stockholders' Equity
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|||||||||||||||||||||||||||||
Balance at June 30, 2019
|
|
378,597
|
|
|
$
|
473
|
|
|
$
|
510
|
|
|
34,381
|
|
|
$
|
(4,062
|
)
|
|
$
|
6,170
|
|
|
$
|
(3,269
|
)
|
|
$
|
228
|
|
|
$
|
50
|
|
|||||
Net income in stockholders' equity, excludes redeemable interests' share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
671
|
|
|
—
|
|
|
8
|
|
|
679
|
|
||||||||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(142
|
)
|
|
(10
|
)
|
|
(152
|
)
|
||||||||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(483
|
)
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
||||||||||||
Shares repurchased
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,562
|
|
|
(215
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(215
|
)
|
||||||||||||
Recognition of stock-based compensation
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
||||||||||||
Dividends declared ($1.03 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(354
|
)
|
|
—
|
|
|
—
|
|
|
(354
|
)
|
||||||||||||
Other
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
$
|
(1
|
)
|
|
3
|
|
|
4
|
|
|||||||||||
Balance at September 30, 2019
|
|
378,597
|
|
|
$
|
473
|
|
|
$
|
535
|
|
|
35,460
|
|
|
$
|
(4,222
|
)
|
|
$
|
6,485
|
|
|
$
|
(3,412
|
)
|
|
$
|
229
|
|
|
$
|
88
|
|
|
|
Nine Months Ended September 30, 2019
|
|||||||||||||||||||||||||||||||||||||
(Millions of dollars, shares in thousands, except per share amounts)
|
|
Common Stock
Issued
|
|
Additional Paid-in Capital
|
|
Treasury Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Non-controlling Interests
|
|
Total Stockholders' Equity
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|||||||||||||||||||||||||||||
Balance at December 31, 2018
|
|
378,597
|
|
|
$
|
473
|
|
|
$
|
548
|
|
|
33,635
|
|
|
$
|
(3,956
|
)
|
|
$
|
5,947
|
|
|
$
|
(3,299
|
)
|
|
$
|
241
|
|
|
$
|
(46
|
)
|
|||||
Net income in stockholders' equity, excludes redeemable interests' share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,610
|
|
|
—
|
|
|
28
|
|
|
1,638
|
|
||||||||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(112
|
)
|
|
(17
|
)
|
|
(129
|
)
|
||||||||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
(2,642
|
)
|
|
302
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
212
|
|
||||||||||||
Shares repurchased
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,467
|
|
|
(568
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(568
|
)
|
||||||||||||
Recognition of stock-based compensation
|
|
—
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
72
|
|
||||||||||||
Dividends declared ($3.09 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,063
|
)
|
|
—
|
|
|
(24
|
)
|
|
(1,087
|
)
|
||||||||||||
Other
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(1
|
)
|
|
1
|
|
|
(4
|
)
|
||||||||||||
Balance at September 30, 2019
|
|
378,597
|
|
|
$
|
473
|
|
|
$
|
535
|
|
|
35,460
|
|
|
$
|
(4,222
|
)
|
|
$
|
6,485
|
|
|
$
|
(3,412
|
)
|
|
$
|
229
|
|
|
$
|
88
|
|
|
|
Three Months Ended September 30, 2018
|
|||||||||||||||||||||||||||||||||||||
(Millions of dollars, shares in thousands, except per share amounts)
|
|
Common Stock
Issued
|
|
Additional Paid-in Capital
|
|
Treasury Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Non-controlling Interests
|
|
Total Stockholders' Equity
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|||||||||||||||||||||||||||||
Balance at June 30, 2018
|
|
378,597
|
|
|
$
|
473
|
|
|
$
|
542
|
|
|
30,713
|
|
|
$
|
(3,632
|
)
|
|
$
|
5,782
|
|
|
$
|
(3,222
|
)
|
|
$
|
235
|
|
|
$
|
178
|
|
|||||
Net income in stockholders' equity, excludes redeemable interests' share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
451
|
|
|
—
|
|
|
10
|
|
|
461
|
|
||||||||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
(53
|
)
|
||||||||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(300
|
)
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
||||||||||||
Shares repurchased
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,561
|
|
|
(174
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(174
|
)
|
||||||||||||
Recognition of stock-based compensation
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
||||||||||||
Dividends declared ($1.00 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(347
|
)
|
|
—
|
|
|
—
|
|
|
(347
|
)
|
||||||||||||
Other
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||||||||
Balance at September 30, 2018
|
|
378,597
|
|
|
$
|
473
|
|
|
$
|
555
|
|
|
31,974
|
|
|
$
|
(3,772
|
)
|
|
$
|
5,886
|
|
|
$
|
(3,275
|
)
|
|
$
|
245
|
|
|
$
|
112
|
|
|
|
Nine Months Ended September 30, 2018
|
|||||||||||||||||||||||||||||||||||||
(Millions of dollars, shares in thousands, except per share amounts)
|
|
Common Stock
Issued
|
|
Additional Paid-in Capital
|
|
Treasury Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Non-controlling Interests
|
|
Total Stockholders' Equity
|
|||||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|||||||||||||||||||||||||||||
Balance at December 31, 2017
|
|
378,597
|
|
|
$
|
473
|
|
|
$
|
594
|
|
|
27,491
|
|
|
$
|
(3,288
|
)
|
|
$
|
5,769
|
|
|
$
|
(2,919
|
)
|
|
$
|
253
|
|
|
$
|
882
|
|
|||||
Net income in stockholders' equity, excludes redeemable interests' share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
999
|
|
|
—
|
|
|
22
|
|
|
1,021
|
|
||||||||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(200
|
)
|
|
(10
|
)
|
|
(210
|
)
|
||||||||||||
Stock-based awards exercised or vested
|
|
—
|
|
|
—
|
|
|
(87
|
)
|
|
(1,207
|
)
|
|
137
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
||||||||||||
Shares repurchased
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,690
|
|
|
(621
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(621
|
)
|
||||||||||||
Recognition of stock-based compensation
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||||||||||
Dividends declared ($3.00 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,046
|
)
|
|
—
|
|
|
(20
|
)
|
|
(1,066
|
)
|
||||||||||||
Other
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
164
|
|
|
(156
|
)
|
|
—
|
|
|
12
|
|
||||||||||||
Balance at September 30, 2018
|
|
378,597
|
|
|
$
|
473
|
|
|
$
|
555
|
|
|
31,974
|
|
|
$
|
(3,772
|
)
|
|
$
|
5,886
|
|
|
$
|
(3,275
|
)
|
|
$
|
245
|
|
|
$
|
112
|
|
|
|
Nine Months Ended
September 30 |
||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
||||
Operating Activities
|
|
|
|
|
||||
Net income
|
|
$
|
1,641
|
|
|
$
|
1,024
|
|
Depreciation and amortization
|
|
700
|
|
|
652
|
|
||
Asset impairments
|
|
—
|
|
|
74
|
|
||
Stock-based compensation
|
|
74
|
|
|
45
|
|
||
Deferred income taxes
|
|
8
|
|
|
44
|
|
||
Net (gains) losses on asset dispositions
|
|
(155
|
)
|
|
57
|
|
||
Equity companies' earnings in excess of dividends paid
|
|
(31
|
)
|
|
(18
|
)
|
||
Operating working capital
|
|
(399
|
)
|
|
117
|
|
||
Postretirement benefits
|
|
(16
|
)
|
|
(87
|
)
|
||
Other
|
|
(10
|
)
|
|
113
|
|
||
Cash Provided by Operations
|
|
1,812
|
|
|
2,021
|
|
||
Investing Activities
|
|
|
|
|
||||
Capital spending
|
|
(867
|
)
|
|
(566
|
)
|
||
Proceeds from dispositions of property
|
|
206
|
|
|
16
|
|
||
Investments in time deposits
|
|
(353
|
)
|
|
(218
|
)
|
||
Maturities of time deposits
|
|
287
|
|
|
139
|
|
||
Other
|
|
(40
|
)
|
|
(3
|
)
|
||
Cash Used for Investing
|
|
(767
|
)
|
|
(632
|
)
|
||
Financing Activities
|
|
|
|
|
||||
Cash dividends paid
|
|
(1,054
|
)
|
|
(1,039
|
)
|
||
Change in short-term debt
|
|
324
|
|
|
453
|
|
||
Debt proceeds
|
|
700
|
|
|
—
|
|
||
Debt repayments
|
|
(705
|
)
|
|
(310
|
)
|
||
Proceeds from exercise of stock options
|
|
211
|
|
|
50
|
|
||
Acquisitions of common stock for the treasury
|
|
(544
|
)
|
|
(596
|
)
|
||
Other
|
|
(92
|
)
|
|
(41
|
)
|
||
Cash Used for Financing
|
|
(1,160
|
)
|
|
(1,483
|
)
|
||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
(8
|
)
|
|
(28
|
)
|
||
Change in Cash and Cash Equivalents
|
|
(123
|
)
|
|
(122
|
)
|
||
Cash and Cash Equivalents - Beginning of Period
|
|
539
|
|
|
616
|
|
||
Cash and Cash Equivalents - End of Period
|
|
$
|
416
|
|
|
$
|
494
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Cost of products sold:
|
|
|
|
|
|
|
|
||||||||
Charges for workforce reductions
|
$
|
1
|
|
|
$
|
31
|
|
|
$
|
33
|
|
|
$
|
156
|
|
Asset impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
||||
Asset write-offs
|
18
|
|
|
16
|
|
|
45
|
|
|
102
|
|
||||
Incremental depreciation
|
57
|
|
|
47
|
|
|
189
|
|
|
115
|
|
||||
Other exit costs
|
28
|
|
|
9
|
|
|
64
|
|
|
18
|
|
||||
Total
|
104
|
|
|
103
|
|
|
331
|
|
|
465
|
|
||||
Marketing, research and general expenses:
|
|
|
|
|
|
|
|
||||||||
Charges (adjustments) for workforce reductions
|
(4
|
)
|
|
(13
|
)
|
|
(12
|
)
|
|
257
|
|
||||
Other exit costs
|
25
|
|
|
39
|
|
|
78
|
|
|
84
|
|
||||
Total
|
21
|
|
|
26
|
|
|
66
|
|
|
341
|
|
||||
Other (income) and expense, net
|
(181
|
)
|
|
—
|
|
|
(182
|
)
|
|
—
|
|
||||
Nonoperating expense(a)
|
—
|
|
|
20
|
|
|
—
|
|
|
50
|
|
||||
Total charges
|
(56
|
)
|
|
149
|
|
|
215
|
|
|
856
|
|
||||
Provision for income taxes
|
23
|
|
|
(30
|
)
|
|
(35
|
)
|
|
(197
|
)
|
||||
Net charges
|
(33
|
)
|
|
119
|
|
|
180
|
|
|
659
|
|
||||
Net impact related to equity companies and noncontrolling interests
|
—
|
|
|
—
|
|
|
1
|
|
|
(10
|
)
|
||||
Net charges attributable to Kimberly-Clark Corporation
|
$
|
(33
|
)
|
|
$
|
119
|
|
|
$
|
181
|
|
|
$
|
649
|
|
(a)
|
Represents non-cash pension settlement charges resulting from restructuring actions.
|
|
|
2019
|
|
2018
|
||||
Restructuring liabilities at January 1
|
|
$
|
210
|
|
|
$
|
—
|
|
Charges for workforce reductions and other cash exit costs
|
|
159
|
|
|
512
|
|
||
Cash payments
|
|
(230
|
)
|
|
(229
|
)
|
||
Currency and other
|
|
3
|
|
|
(20
|
)
|
||
Restructuring liabilities at September 30
|
|
$
|
142
|
|
|
$
|
263
|
|
|
Fair Value Hierarchy Level
|
|
Carrying Amount
|
|
Estimated Fair Value
|
|
Carrying Amount
|
|
Estimated Fair Value
|
||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
September 30, 2019
|
|
December 31, 2018
|
|||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents(a)
|
1
|
|
$
|
416
|
|
|
$
|
416
|
|
|
$
|
539
|
|
|
$
|
539
|
|
Time deposits(b)
|
1
|
|
302
|
|
|
302
|
|
|
256
|
|
|
256
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
Short-term debt(c)
|
2
|
|
796
|
|
|
796
|
|
|
495
|
|
|
495
|
|
||||
Long-term debt(d)
|
2
|
|
6,957
|
|
|
7,885
|
|
|
6,960
|
|
|
7,192
|
|
(a)
|
Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at cost, which approximates fair value.
|
(b)
|
Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of greater than one year, included in Other current assets or Other Assets in the consolidated balance sheet, as appropriate. Time deposits are recorded at cost, which approximates fair value.
|
(c)
|
Short-term debt is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value.
|
(d)
|
Long-term debt includes the current portion of these debt instruments. Fair values were estimated based on quoted prices for financial instruments for which all significant inputs were observable, either directly or indirectly.
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||
(Millions of shares)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Basic
|
|
343.8
|
|
|
347.2
|
|
|
344.1
|
|
|
348.8
|
|
Dilutive effect of stock options and restricted share unit awards
|
|
2.1
|
|
|
1.6
|
|
|
1.9
|
|
|
1.6
|
|
Diluted
|
|
345.9
|
|
|
348.8
|
|
|
346.0
|
|
|
350.4
|
|
|
|
Unrealized Translation
|
|
Defined Benefit Pension Plans
|
|
Other Postretirement Benefit Plans
|
|
Cash Flow Hedges and Other
|
||||||||
Balance as of December 31, 2017
|
|
$
|
(1,864
|
)
|
|
$
|
(976
|
)
|
|
$
|
(39
|
)
|
|
$
|
(40
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(333
|
)
|
|
25
|
|
|
14
|
|
|
17
|
|
||||
(Income) loss reclassified from AOCI
|
|
1
|
|
|
63
|
|
(a)
|
(1
|
)
|
(a)
|
14
|
|
||||
Net current period other comprehensive income (loss)
|
|
(332
|
)
|
|
88
|
|
|
13
|
|
|
31
|
|
||||
Tax effects reclassified from AOCI
|
|
(18
|
)
|
|
(125
|
)
|
|
(5
|
)
|
|
(8
|
)
|
||||
Balance as of September 30, 2018
|
|
$
|
(2,214
|
)
|
|
$
|
(1,013
|
)
|
|
$
|
(31
|
)
|
|
$
|
(17
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Balance as of December 31, 2018
|
|
$
|
(2,297
|
)
|
|
$
|
(1,017
|
)
|
|
$
|
12
|
|
|
$
|
3
|
|
Other comprehensive income (loss) before reclassifications
|
|
(132
|
)
|
|
1
|
|
|
16
|
|
|
(6
|
)
|
||||
(Income) loss reclassified from AOCI
|
|
—
|
|
|
22
|
|
(a)
|
(1
|
)
|
(a)
|
(13
|
)
|
||||
Net current period other comprehensive income (loss)
|
|
(132
|
)
|
|
23
|
|
|
15
|
|
|
(19
|
)
|
||||
Balance as of September 30, 2019
|
|
$
|
(2,429
|
)
|
|
$
|
(994
|
)
|
|
$
|
27
|
|
|
$
|
(16
|
)
|
(a)
|
Included in computation of net periodic benefit costs.
|
|
|
Three Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2019 |
|
Income Statement Classification
|
||||
Lease cost
|
|
$
|
41
|
|
|
$
|
120
|
|
|
Cost of products sold, Marketing, research and general expenses
|
Variable lease cost(a)
|
|
30
|
|
|
102
|
|
|
Cost of products sold, Marketing, research and general expenses
|
||
Total lease cost
|
|
$
|
71
|
|
|
$
|
222
|
|
|
|
|
|
September 30, 2019
|
|
Balance Sheet Classification
|
||
Lease assets
|
|
$
|
399
|
|
|
Other Assets
|
|
|
|
|
|
||
Current lease liabilities
|
|
$
|
133
|
|
|
Accrued expenses and other current liabilities
|
Noncurrent lease liabilities
|
|
275
|
|
|
Other Liabilities
|
|
Total lease liabilities
|
|
$
|
408
|
|
|
|
|
|
September 30, 2019
|
||
2019
|
|
$
|
40
|
|
2020
|
|
138
|
|
|
2021
|
|
95
|
|
|
2022
|
|
66
|
|
|
2023
|
|
45
|
|
|
Thereafter
|
|
75
|
|
|
Total lease payments
|
|
459
|
|
|
Less imputed interest
|
|
51
|
|
|
Present value of lease liabilities
|
|
$
|
408
|
|
|
|
December 31, 2018
|
||
2019
|
|
$
|
160
|
|
2020
|
|
123
|
|
|
2021
|
|
85
|
|
|
2022
|
|
57
|
|
|
2023
|
|
41
|
|
|
Thereafter
|
|
72
|
|
|
Future minimum obligations
|
|
$
|
538
|
|
•
|
Personal Care brands offer our consumers a trusted partner in caring for themselves and their families by delivering confidence, protection and discretion through a wide variety of innovative solutions and products such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products. Products in this segment are sold under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise and other brand names.
|
•
|
Consumer Tissue offers a wide variety of innovative solutions and trusted brands that responsibly improve everyday living for families around the world. Products in this segment include facial and bathroom tissue, paper towels, napkins and related products, and are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve and other brand names.
|
•
|
K-C Professional partners with businesses to create Exceptional Workplaces, helping to make them healthier, safer and more productive through a range of solutions and supporting products such as wipers, tissue, towels, apparel, soaps and sanitizers. Our brands, including Kleenex, Scott, WypAll, Kimtech and KleenGuard are well known for quality and trusted to help people around the world work better.
|
|
|
Three Months Ended September 30
|
|
|
|
Nine Months Ended September 30
|
|
|
||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||
NET SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Personal Care
|
|
$
|
2,305
|
|
|
$
|
2,252
|
|
|
+2
|
%
|
|
$
|
6,866
|
|
|
$
|
6,816
|
|
|
+1
|
%
|
Consumer Tissue
|
|
1,484
|
|
|
1,469
|
|
|
+1
|
%
|
|
4,482
|
|
|
4,520
|
|
|
-1
|
%
|
||||
K-C Professional
|
|
839
|
|
|
848
|
|
|
-1
|
%
|
|
2,477
|
|
|
2,541
|
|
|
-3
|
%
|
||||
Corporate & Other
|
|
12
|
|
|
13
|
|
|
N.M.
|
|
|
42
|
|
|
40
|
|
|
N.M.
|
|
||||
TOTAL NET SALES
|
|
$
|
4,640
|
|
|
$
|
4,582
|
|
|
+1
|
%
|
|
$
|
13,867
|
|
|
$
|
13,917
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Personal Care
|
|
$
|
490
|
|
|
$
|
466
|
|
|
+5
|
%
|
|
$
|
1,459
|
|
|
$
|
1,397
|
|
|
+4
|
%
|
Consumer Tissue
|
|
264
|
|
|
212
|
|
|
+25
|
%
|
|
726
|
|
|
668
|
|
|
+9
|
%
|
||||
K-C Professional
|
|
176
|
|
|
160
|
|
|
+10
|
%
|
|
488
|
|
|
483
|
|
|
+1
|
%
|
||||
Corporate & Other(a)
|
|
(190
|
)
|
|
(171
|
)
|
|
N.M.
|
|
|
(599
|
)
|
|
(952
|
)
|
|
N.M.
|
|
||||
Other (income) and expense, net(a)
|
|
(175
|
)
|
|
(2
|
)
|
|
N.M.
|
|
|
(166
|
)
|
|
6
|
|
|
N.M.
|
|
||||
TOTAL OPERATING PROFIT
|
|
$
|
915
|
|
|
$
|
669
|
|
|
+37
|
%
|
|
$
|
2,240
|
|
|
$
|
1,590
|
|
|
+41
|
%
|
(a)
|
Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including charges related to the 2018 Global Restructuring Program. Restructuring charges related to the personal care, consumer tissue and K-C Professional business segments were $53, $49 and $21, respectively, for the three months ended September 30, 2019, $75, $35 and $11, respectively, for the three months ended September 30, 2018, $208, $131 and $52, respectively, for the nine months ended September 30, 2019 and $476, $194 and $112, respectively, for the nine months ended September 30, 2018.
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
(Billions of dollars)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Consumer tissue products
|
|
$
|
1.5
|
|
|
$
|
1.5
|
|
|
$
|
4.5
|
|
|
$
|
4.5
|
|
Baby and child care products
|
|
1.6
|
|
|
1.6
|
|
|
4.7
|
|
|
4.7
|
|
||||
Away-from-home professional products
|
|
0.8
|
|
|
0.8
|
|
|
2.5
|
|
|
2.5
|
|
||||
All other
|
|
0.7
|
|
|
0.7
|
|
|
2.2
|
|
|
2.2
|
|
||||
Consolidated
|
|
$
|
4.6
|
|
|
$
|
4.6
|
|
|
$
|
13.9
|
|
|
$
|
13.9
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
LIFO
|
|
Non-LIFO
|
|
Total
|
|
LIFO
|
|
Non-LIFO
|
|
Total
|
||||||||||||
Raw materials
|
|
$
|
81
|
|
|
$
|
233
|
|
|
$
|
314
|
|
|
$
|
99
|
|
|
$
|
263
|
|
|
$
|
362
|
|
Work in process
|
|
130
|
|
|
91
|
|
|
221
|
|
|
120
|
|
|
94
|
|
|
214
|
|
||||||
Finished goods
|
|
462
|
|
|
687
|
|
|
1,149
|
|
|
461
|
|
|
692
|
|
|
1,153
|
|
||||||
Supplies and other
|
|
—
|
|
|
263
|
|
|
263
|
|
|
—
|
|
|
275
|
|
|
275
|
|
||||||
|
|
673
|
|
|
1,274
|
|
|
1,947
|
|
|
680
|
|
|
1,324
|
|
|
2,004
|
|
||||||
Excess of FIFO or weighted-average cost over LIFO cost
|
|
(168
|
)
|
|
—
|
|
|
(168
|
)
|
|
(191
|
)
|
|
—
|
|
|
(191
|
)
|
||||||
Total
|
|
$
|
505
|
|
|
$
|
1,274
|
|
|
$
|
1,779
|
|
|
$
|
489
|
|
|
$
|
1,324
|
|
|
$
|
1,813
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Land
|
$
|
164
|
|
|
$
|
169
|
|
Buildings
|
2,788
|
|
|
2,787
|
|
||
Machinery and equipment
|
13,888
|
|
|
14,059
|
|
||
Construction in progress
|
780
|
|
|
699
|
|
||
|
17,620
|
|
|
17,714
|
|
||
Less accumulated depreciation
|
(10,462
|
)
|
|
(10,555
|
)
|
||
Total
|
$
|
7,158
|
|
|
$
|
7,159
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Overview of Third Quarter 2019 Results
|
•
|
Results of Operations and Related Information
|
•
|
Liquidity and Capital Resources
|
•
|
Business Outlook
|
•
|
Information Concerning Forward-Looking Statements
|
•
|
2018 Global Restructuring Program - In 2018, we initiated this restructuring program to reduce our structural cost base by streamlining and simplifying our manufacturing supply chain and overhead organization. See Note 2 to the unaudited interim consolidated financial statements for details.
|
•
|
U.S. Tax Reform Related Matters - In 2018, we recognized net charges associated with U.S. tax reform related matters. See Note 3 to the unaudited interim consolidated financial statements for details.
|
•
|
Net sales of $4.6 billion increased more than 1 percent compared to the year-ago period.
|
•
|
Operating profit was $915 in 2019 and $669 in 2018. Net Income Attributable to Kimberly-Clark Corporation was $671 in 2019 compared to $451 in 2018, and diluted earnings per share were $1.94 in 2019 compared to $1.29 in 2018. Results in 2019 and 2018 include charges related to the 2018 Global Restructuring Program. Results in 2019 also include a gain on the sale of a manufacturing facility and associated real estate which were disposed of as part of the restructuring.
|
Selected Financial Results
|
Three Months Ended September 30
|
|
Nine Months Ended September 30
|
||||||||||||||||||
|
2019
|
|
2018
|
|
Percent Change
|
|
2019
|
|
2018
|
|
Percent Change
|
||||||||||
Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
$
|
2,476
|
|
|
$
|
2,407
|
|
|
+3
|
%
|
|
$
|
7,296
|
|
|
$
|
7,139
|
|
|
+2
|
%
|
Outside North America
|
2,227
|
|
|
2,252
|
|
|
-1
|
%
|
|
6,777
|
|
|
7,009
|
|
|
-3
|
%
|
||||
Intergeographic sales
|
(63
|
)
|
|
(77
|
)
|
|
N.M.
|
|
|
(206
|
)
|
|
(231
|
)
|
|
N.M.
|
|
||||
Total Net Sales
|
4,640
|
|
|
4,582
|
|
|
+1
|
%
|
|
13,867
|
|
|
13,917
|
|
|
—
|
|
||||
Operating Profit:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
638
|
|
|
561
|
|
|
+14
|
%
|
|
1,818
|
|
|
1,685
|
|
|
+8
|
%
|
||||
Outside North America
|
292
|
|
|
277
|
|
|
+5
|
%
|
|
855
|
|
|
863
|
|
|
-1
|
%
|
||||
Corporate & Other(a)
|
(190
|
)
|
|
(171
|
)
|
|
N.M.
|
|
|
(599
|
)
|
|
(952
|
)
|
|
N.M.
|
|
||||
Other (income) and expense, net(a)
|
(175
|
)
|
|
(2
|
)
|
|
N.M.
|
|
|
(166
|
)
|
|
6
|
|
|
N.M.
|
|
||||
Total Operating Profit
|
915
|
|
|
669
|
|
|
+37
|
%
|
|
2,240
|
|
|
1,590
|
|
|
+41
|
%
|
||||
Share of net income of equity companies
|
31
|
|
|
23
|
|
|
+35
|
%
|
|
91
|
|
|
80
|
|
|
+14
|
%
|
||||
Net Income Attributable to Kimberly-Clark Corporation
|
671
|
|
|
451
|
|
|
+49
|
%
|
|
1,610
|
|
|
999
|
|
|
+61
|
%
|
||||
Diluted Earnings per Share
|
1.94
|
|
|
1.29
|
|
|
+50
|
%
|
|
4.65
|
|
|
2.85
|
|
|
+63
|
%
|
(a)
|
Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including adjustments as indicated in the Non-GAAP Reconciliations.
|
|
|
Three Months Ended September 30, 2019
|
||||||||||
|
|
As
Reported
|
|
2018 Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
||||||
Cost of products sold
|
|
$
|
3,085
|
|
|
$
|
104
|
|
|
$
|
2,981
|
|
Gross Profit
|
|
1,555
|
|
|
(104
|
)
|
|
1,659
|
|
|||
Marketing, research and general expenses
|
|
815
|
|
|
21
|
|
|
794
|
|
|||
Other (income) and expense, net
|
|
(175
|
)
|
|
(181
|
)
|
|
6
|
|
|||
Operating Profit
|
|
915
|
|
|
56
|
|
|
859
|
|
|||
Provision for income taxes
|
|
(192
|
)
|
|
(23
|
)
|
|
(169
|
)
|
|||
Effective tax rate
|
|
22.8
|
%
|
|
—
|
|
|
21.5
|
%
|
|||
Net Income Attributable to Kimberly-Clark Corporation
|
|
671
|
|
|
33
|
|
|
638
|
|
|||
Diluted Earnings per Share(a)
|
|
1.94
|
|
|
0.10
|
|
|
1.84
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||
|
|
As
Reported
|
|
2018 Global
Restructuring
Program
|
|
U.S. Tax Reform Related Matters
|
|
As
Adjusted
Non-GAAP
|
||||||||
Cost of products sold
|
|
$
|
3,166
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
$
|
3,063
|
|
Gross Profit
|
|
1,416
|
|
|
(103
|
)
|
|
—
|
|
|
1,519
|
|
||||
Marketing, research and general expenses
|
|
749
|
|
|
26
|
|
|
—
|
|
|
723
|
|
||||
Operating Profit
|
|
669
|
|
|
(129
|
)
|
|
—
|
|
|
798
|
|
||||
Nonoperating expense
|
|
(30
|
)
|
|
(20
|
)
|
|
—
|
|
|
(10
|
)
|
||||
Provision for income taxes
|
|
(138
|
)
|
|
30
|
|
|
(26
|
)
|
|
(142
|
)
|
||||
Effective tax rate
|
|
23.9
|
%
|
|
—
|
|
|
—
|
|
|
19.6
|
%
|
||||
Net Income Attributable to Kimberly-Clark Corporation
|
|
451
|
|
|
(119
|
)
|
|
(26
|
)
|
|
596
|
|
||||
Diluted Earnings per Share(a)
|
|
1.29
|
|
|
(0.34
|
)
|
|
(0.07
|
)
|
|
1.71
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||
|
|
As
Reported
|
|
2018 Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
||||||
Cost of products sold
|
|
$
|
9,398
|
|
|
$
|
331
|
|
|
$
|
9,067
|
|
Gross Profit
|
|
4,469
|
|
|
(331
|
)
|
|
4,800
|
|
|||
Marketing, research and general expenses
|
|
2,395
|
|
|
66
|
|
|
2,329
|
|
|||
Other (income) and expense, net
|
|
(166
|
)
|
|
(182
|
)
|
|
16
|
|
|||
Operating Profit
|
|
2,240
|
|
|
(215
|
)
|
|
2,455
|
|
|||
Provision for income taxes
|
|
(467
|
)
|
|
35
|
|
|
(502
|
)
|
|||
Effective tax rate
|
|
23.2
|
%
|
|
—
|
|
|
22.5
|
%
|
|||
Share of net income of equity companies
|
|
91
|
|
|
(2
|
)
|
|
93
|
|
|||
Net income attributable to noncontrolling interests
|
|
(31
|
)
|
|
1
|
|
|
(32
|
)
|
|||
Net Income Attributable to Kimberly-Clark Corporation
|
|
1,610
|
|
|
(181
|
)
|
|
1,791
|
|
|||
Diluted Earnings per Share(a)
|
|
4.65
|
|
|
(0.52
|
)
|
|
5.18
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
|
|
As
Reported
|
|
2018 Global
Restructuring
Program
|
|
U.S. Tax
Reform Related Matters
|
|
As
Adjusted
Non-GAAP
|
||||||||
Cost of products sold
|
|
$
|
9,722
|
|
|
$
|
465
|
|
|
$
|
—
|
|
|
$
|
9,257
|
|
Gross Profit
|
|
4,195
|
|
|
(465
|
)
|
|
—
|
|
|
4,660
|
|
||||
Marketing, research and general expenses
|
|
2,599
|
|
|
341
|
|
|
—
|
|
|
2,258
|
|
||||
Operating Profit
|
|
1,590
|
|
|
(806
|
)
|
|
—
|
|
|
2,396
|
|
||||
Nonoperating expense
|
|
(75
|
)
|
|
(50
|
)
|
|
—
|
|
|
(25
|
)
|
||||
Provision for income taxes
|
|
(380
|
)
|
|
197
|
|
|
(108
|
)
|
|
(469
|
)
|
||||
Effective tax rate
|
|
28.7
|
%
|
|
—
|
|
|
—
|
|
|
21.5
|
%
|
||||
Share of net income of equity companies
|
|
80
|
|
|
(1
|
)
|
|
—
|
|
|
81
|
|
||||
Net income attributable to noncontrolling interests
|
|
(25
|
)
|
|
11
|
|
|
—
|
|
|
(36
|
)
|
||||
Net Income Attributable to Kimberly-Clark Corporation
|
|
999
|
|
|
(649
|
)
|
|
(108
|
)
|
|
1,756
|
|
||||
Diluted Earnings per Share(a)
|
|
2.85
|
|
|
(1.85
|
)
|
|
(0.31
|
)
|
|
5.01
|
|
Net Sales
|
|
Percent Change
|
|
Adjusted Operating Profit
|
|
Percent Change
|
||||||||
|
|
Three Months
Ended September 30 |
|
Nine Months
Ended September 30 |
|
|
|
Three Months
Ended September 30 |
|
Nine Months
Ended September 30 |
||||
Volume
|
|
(1
|
)
|
|
(1
|
)
|
|
Volume
|
|
(1
|
)
|
|
(1
|
)
|
Net Price
|
|
4
|
|
|
4
|
|
|
Net Price
|
|
21
|
|
|
23
|
|
Mix/Other
|
|
1
|
|
|
1
|
|
|
Input Costs
|
|
1
|
|
|
(8
|
)
|
Currency
|
|
(2
|
)
|
|
(4
|
)
|
|
Cost Savings(c)
|
|
12
|
|
|
13
|
|
Total(a)
|
|
1
|
|
|
—
|
|
|
Currency Translation
|
|
(2
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
Other(d)
|
|
(23
|
)
|
|
(22
|
)
|
||
Organic(b)
|
|
4
|
|
|
4
|
|
|
Total
|
|
8
|
|
|
2
|
|
|
|
Three Months Ended September 30
|
|
Nine Months Ended September 30
|
|
|
|
Three Months Ended September 30
|
|
Nine Months Ended September 30
|
||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Net Sales
|
|
$
|
2,305
|
|
|
$
|
2,252
|
|
|
$
|
6,866
|
|
|
$
|
6,816
|
|
|
Operating Profit
|
|
$
|
490
|
|
|
$
|
466
|
|
|
$
|
1,459
|
|
|
$
|
1,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net Sales
|
|
Percent Change
|
|
Percent Change
|
|
Operating Profit
|
|
Percent Change
|
|
Percent Change
|
||||||||||||||||||||||||
Volume
|
|
|
|
1
|
|
|
|
|
1
|
|
Volume
|
|
|
|
2
|
|
|
|
|
3
|
||||||||||||||
Net Price
|
|
3
|
|
|
|
|
4
|
|
Net Price
|
|
14
|
|
|
|
|
17
|
||||||||||||||||||
Mix/Other
|
|
1
|
|
|
|
|
1
|
|
Input Costs
|
|
(1
|
)
|
|
|
|
(7)
|
||||||||||||||||||
Currency
|
|
(3
|
)
|
|
|
|
(5)
|
|
Cost Savings(c)
|
|
10
|
|
|
|
|
12
|
||||||||||||||||||
Total(a)
|
|
2
|
|
|
|
|
1
|
|
Currency Translation
|
|
(2
|
)
|
|
|
|
(3)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
Other(d)
|
|
(18
|
)
|
|
|
|
(18)
|
|||||||||||||||||||
Organic(b)
|
|
5
|
|
|
|
|
6
|
|
Total
|
|
5
|
|
|
|
|
4
|
|
|
Three Months Ended September 30
|
|
Nine Months Ended September 30
|
|
|
|
Three Months Ended September 30
|
|
Nine Months Ended September 30
|
||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Net Sales
|
|
$
|
1,484
|
|
|
$
|
1,469
|
|
|
$
|
4,482
|
|
|
$
|
4,520
|
|
|
Operating Profit
|
|
$
|
264
|
|
|
$
|
212
|
|
|
$
|
726
|
|
|
$
|
668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net Sales
|
|
Percent Change
|
|
Percent Change
|
|
Operating Profit
|
|
Percent Change
|
|
Percent Change
|
||||||||||||||||||||||||
Volume
|
|
|
|
(2
|
)
|
|
|
|
(3
|
)
|
|
Volume
|
|
|
|
(5
|
)
|
|
|
|
(8
|
)
|
||||||||||||
Net Price
|
|
5
|
|
|
|
|
5
|
|
|
Net Price
|
|
34
|
|
|
|
|
36
|
|
||||||||||||||||
Mix/Other
|
|
—
|
|
|
|
|
—
|
|
|
Input Costs
|
|
5
|
|
|
|
|
(10
|
)
|
||||||||||||||||
Currency
|
|
(2
|
)
|
|
|
|
(3
|
)
|
|
Cost Savings(c)
|
|
14
|
|
|
|
|
12
|
|
||||||||||||||||
Total(a)
|
|
1
|
|
|
|
|
(1
|
)
|
|
Currency Translation
|
|
(1
|
)
|
|
|
|
(1
|
)
|
||||||||||||||||
|
|
|
|
|
|
|
|
Other(d)
|
|
(22
|
)
|
|
|
|
(20
|
)
|
||||||||||||||||||
Organic(b)
|
|
3
|
|
|
|
|
2
|
|
|
Total
|
|
25
|
|
|
|
|
9
|
|
|
|
Three Months Ended September 30
|
|
Nine Months Ended September 30
|
|
|
|
Three Months Ended September 30
|
|
Nine Months Ended September 30
|
||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Net Sales
|
|
$
|
839
|
|
|
$
|
848
|
|
|
$
|
2,477
|
|
|
$
|
2,541
|
|
|
Operating Profit
|
$
|
176
|
|
|
$
|
160
|
|
|
$
|
488
|
|
|
$
|
483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net Sales
|
|
Percent Change
|
|
Percent Change
|
|
Operating Profit
|
|
Percent Change
|
|
Percent Change
|
||||||||||||||||||||||||
Volume
|
|
|
|
(2
|
)
|
|
|
|
(2
|
)
|
|
Volume
|
|
|
|
(5
|
)
|
|
|
|
(3
|
)
|
||||||||||||
Net Price
|
|
3
|
|
|
|
|
3
|
|
|
Net Price
|
|
18
|
|
|
|
|
16
|
|
||||||||||||||||
Mix/Other
|
|
1
|
|
|
|
|
1
|
|
|
Input Costs
|
|
4
|
|
|
|
|
(7
|
)
|
||||||||||||||||
Exited Businesses(e)
|
|
(2
|
)
|
|
|
|
(2
|
)
|
|
Cost Savings(c)
|
|
15
|
|
|
|
|
11
|
|
||||||||||||||||
Currency
|
|
(2
|
)
|
|
|
|
(3
|
)
|
|
Currency Translation
|
|
(3
|
)
|
|
|
|
(3
|
)
|
||||||||||||||||
Total(a)
|
|
(1
|
)
|
|
|
|
(3
|
)
|
|
Other(d)
|
|
(19
|
)
|
|
|
|
(13
|
)
|
||||||||||||||||
Organic(b)
|
|
3
|
|
|
|
|
2
|
|
|
Total
|
|
10
|
|
|
|
|
1
|
|
•
|
We expect net sales to be down slightly year on year, as compared to our prior assumption of even to down 1 percent. We anticipate changes in foreign currency exchange rates to have an unfavorable impact of 4 percent (prior estimate 3 to 4 percent). Exited businesses in conjunction with the 2018 Global Restructuring Program are expected to reduce sales slightly, mostly in K-C Professional.
|
•
|
We expect organic sales to increase approximately 3 to 4 percent (up from our prior estimate of 3 percent) driven by higher net selling prices of at least 3 percent.
|
•
|
We expect adjusted operating profit growth of 4 to 5 percent (up from our prior estimate of 3 to 5 percent).
|
•
|
We plan to achieve total cost savings toward the lower end of our $400 to $450 target range from our FORCE program and the 2018 Global Restructuring Program.
|
•
|
We expect inflation in key cost inputs to be in the lower half of the previously communicated range of $150 to $250. We anticipate the majority of the inflation to occur in international markets.
|
•
|
We continue to expect higher marketing spending and general and administrative costs.
|
•
|
We expect total foreign currency translation and transaction effects to be slightly more unfavorable than previously assumed.
|
•
|
We expect an adjusted effective tax rate toward the low end of the previously communicated range of 23 to 25 percent.
|
•
|
We expect net income from equity companies to be higher year-on-year.
|
Item 4.
|
Controls and Procedures
|
Period (2019)
|
|
Total Number
of Shares
Purchased(a)
|
|
Average
Price Paid
Per Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
|
Maximum Number
of Shares That May
Yet Be Purchased
Under the Plans or
Programs
|
|||||
July 1 to July 31
|
|
400,200
|
|
|
$
|
136.94
|
|
|
27,338,444
|
|
|
12,661,556
|
|
August 1 to August 30
|
|
594,600
|
|
|
138.97
|
|
|
27,933,044
|
|
|
12,066,956
|
|
|
September 1 to September 30
|
|
566,400
|
|
|
135.76
|
|
|
28,499,444
|
|
|
11,500,556
|
|
|
Total
|
|
1,561,200
|
|
|
|
|
|
|
|
(a)
|
Share repurchases were made pursuant to a share repurchase program authorized by our Board of Directors on November 13, 2014. This program allows for the repurchase of 40 million shares in an amount not to exceed $5 billion.
|
(a)
|
Exhibits
|
|
|
|
|
|
KIMBERLY-CLARK CORPORATION
|
|
|
(Registrant)
|
|
|
|
By:
|
|
/s/ Maria Henry
|
|
|
Maria Henry
|
|
|
Senior Vice President and
|
|
|
Chief Financial Officer
|
|
|
(principal financial officer)
|
|
|
|
By:
|
|
/s/ Andrew S. Drexler
|
|
|
Andrew S. Drexler
|
|
|
Vice President and Controller
|
|
|
(principal accounting officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Kimberly-Clark Corporation (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ Michael D. Hsu
|
|
|
Michael D. Hsu
|
|
|
Chief Executive Officer
|
|
|
|
October 22, 2019
|
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Kimberly-Clark Corporation (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ Maria Henry
|
|
|
Maria Henry
|
|
|
Chief Financial Officer
|
|
|
|
October 22, 2019
|
|
|
(1)
|
the Form 10-Q, filed with the Securities and Exchange Commission on October 22, 2019 (“accompanied report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the accompanied report fairly presents, in all material respects, the financial condition and results of operations of Kimberly-Clark Corporation.
|
|
|
/s/ Michael D. Hsu
|
|
|
Michael D. Hsu
|
|
|
Chief Executive Officer
|
|
|
|
October 22, 2019
|
|
|
(1)
|
the Form 10-Q, filed with the Securities and Exchange Commission on October 22, 2019 (“accompanied report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the accompanied report fairly presents, in all material respects, the financial condition and results of operations of Kimberly-Clark Corporation.
|
|
|
/s/ Maria Henry
|
|
|
Maria Henry
|
|
|
Chief Financial Officer
|
|
|
|
October 22, 2019
|
|
|