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Quarterly report [Sections 13 or 15(d)]

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( Exact name of registrant as specified in its charter)
PART I – FINANCIAL INFORMATION 3
Item 1. Financial Statements 3
UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE THREE MONTHS ENDED MARCH 31, 2016 AND 2015 3
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2016 AND 2015 4
CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2016 (UNAUDITED) AND DECEMBER 31, 2015 5
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE THREE MONTHS ENDED MARCH 31, 2016 AND 2015 6
UNAUDITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 15
Item 4. Controls and Procedures 23
PART II – OTHER INFORMATION 24
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24
Item 6. Exhibits 25
Three Months Ended March 31
(Millions of dollars, except per share amounts) 2016 2015
Net Sales $ 4,476
$ 4,691
Cost of products sold 2,837
3,032
Gross Profit 1,639
1,659
Marketing, research and general expenses 825
849
Other (income) and expense, net 10
62
Operating Profit 804
748
Interest income 4
4
Interest expense (76 ) (72 )
Income Before Income Taxes and Equity Interests 732
680
Provision for income taxes (207 ) (230 )
Income Before Equity Interests 525
450
Share of net income of equity companies 35
36
Net Income 560
486
Net income attributable to noncontrolling interests (15 ) (18 )
Net Income Attributable to Kimberly-Clark Corporation $ 545
$ 468
Per Share Basis
Net Income Attributable to Kimberly-Clark Corporation
Basic $ 1.51
$ 1.28
Diluted $ 1.50
$ 1.27
Cash Dividends Declared $ 0.92
$ 0.88
Three Months Ended March 31
(Millions of dollars) 2016 2015
Net Income $ 560
$ 486
Other Comprehensive Income (Loss), Net of Tax
Unrealized currency translation adjustments 208
(468 )
Employee postretirement benefits (6 ) 8
Other (19 ) 20
Total Other Comprehensive Income (Loss), Net of Tax 183
(440 )
Comprehensive Income 743
46
Comprehensive income attributable to noncontrolling interests (22 ) (15 )
Comprehensive Income Attributable to Kimberly-Clark Corporation $ 721
$ 31
(Millions of dollars) March 31,
2016
December 31, 2015
ASSETS
Current Assets
Cash and cash equivalents $ 635
$ 619
Accounts receivable, net 2,255
2,281
Inventories 1,902
1,909
Other current assets 359
617
Total Current Assets 5,151
5,426
Property, Plant and Equipment, Net 7,188
7,104
Investments in Equity Companies 284
247
Goodwill 1,498
1,446
Other Assets 699
619
TOTAL ASSETS $ 14,820
$ 14,842
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Debt payable within one year $ 999
$ 1,669
Trade accounts payable 2,442
2,612
Accrued expenses 1,618
1,750
Dividends payable 332
318
Total Current Liabilities 5,391
6,349
Long-Term Debt 6,904
6,106
Noncurrent Employee Benefits 1,167
1,137
Deferred Income Taxes 594
766
Other Liabilities 371
380
Redeemable Preferred Securities of Subsidiaries 64
64
Stockholders' Equity (Deficit)
Kimberly-Clark Corporation 109
(174 )
Noncontrolling Interests 220
214
Total Stockholders' Equity 329
40
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 14,820
$ 14,842
Three Months Ended March 31
(Millions of dollars) 2016 2015
Operating Activities
Net income $ 560
$ 486
Depreciation and amortization 172
194
Stock-based compensation 15
15
Deferred income taxes (34 ) 171
Equity companies' earnings (in excess of) less than dividends paid (30 ) (35 )
(Increase) decrease in operating working capital (105 ) (446 )
Postretirement benefits (16 ) (414 )
Charge related to Venezuelan operations
45
Other (9 ) 4
Cash Provided by Operations 553
20
Investing Activities
Capital spending (220 ) (284 )
Investments in time deposits (59 ) (46 )
Maturities of time deposits 42
73
Other 8
(24 )
Cash Used for Investing (229 ) (281 )
Financing Activities
Cash dividends paid (318 ) (310 )
Change in short-term debt (675 ) 291
Debt proceeds 796
497
Debt repayments (2 ) (4 )
Proceeds from exercise of stock options 31
41
Acquisitions of common stock for the treasury (140 ) (248 )
Shares purchased from noncontrolling interest
(151 )
Other (7 ) (12 )
Cash (Used for) Provided by Financing (315 ) 104
Effect of Exchange Rate Changes on Cash and Cash Equivalents 7
(45 )
Increase (Decrease) in Cash and Cash Equivalents 16
(202 )
Cash and Cash Equivalents - Beginning of Year 619
789
Cash and Cash Equivalents - End of Period $ 635
$ 587
Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value
March 31, 2016 December 31, 2015
Assets
Cash and cash equivalents (a) 1 $ 635
$ 635
$ 619
$ 619
Time deposits and other (b) 1 135
135
124
124
Liabilities and redeemable securities of subsidiaries
Short-term debt (c) 2 400
400
1,071
1,071
Long-term debt (d) 2 7,503
8,267
6,704
7,300
(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. Other, included in other current assets, is composed of funds held in escrow. Time deposits and other are recorded at cost, which approximates fair value.
Pension Benefits Other Benefits
Three Months Ended March 31
2016 2015 2016 2015
Service cost $ 14
$ 10
$ 3
$ 4
Interest cost 38
64
8
8
Expected return on plan assets (41 ) (75 )

Recognized net actuarial loss 13
29


Settlements
9


Other (3 ) (5 )

Net periodic benefit cost $ 21
$ 32
$ 11
$ 12
Three Months Ended March 31
(Millions of shares) 2016 2015
Basic 360.7
365.2
Dilutive effect of stock options and restricted share unit awards 2.7
2.7
Diluted 363.4
367.9
Stockholders' Equity (Deficit) Attributable to
The Corporation Noncontrolling Interests
Balance at December 31, 2015 $ (174 ) $ 214
Net Income 545
14
Other comprehensive income, net of tax
Unrealized translation 200
8
Employee postretirement benefits (5 ) (1 )
Other (19 )
Stock-based awards exercised or vested 30

Recognition of stock-based compensation 15

Income tax benefits on stock-based compensation 9

Shares repurchased (160 )
Dividends declared (332 ) (16 )
Other
1
Balance at March 31, 2016 $ 109
$ 220
Unrealized Translation Defined Benefit Pension Plans Other Postretirement Benefit Plans Cash Flow Hedges and Other
Balance as of December 31, 2014 $ (1,335 ) $ (1,924 ) $ (37 ) $ (16 )
Other comprehensive income (loss) before reclassifications (465 ) (8 ) 2
37
(Income) loss reclassified from AOCI
14
(a)
(17 )
Net current period other comprehensive income (loss) (465 ) 6
2
20
Shares purchased from noncontrolling interest and other (12 )


Balance as of March 31, 2015 $ (1,812 ) $ (1,918 ) $ (35 ) $ 4
Balance as of December 31, 2015 $ (2,252 ) $ (1,013 ) $ (3 ) $ (10 )
Other comprehensive income (loss) before reclassifications 200
(12 )
(13 )
(Income) loss reclassified from AOCI
7
(a)
(6 )
Net current period other comprehensive income (loss) 200
(5 )
(19 )
Balance as of March 31, 2016 $ (2,052 ) $ (1,018 ) $ (3 ) $ (29 )
Three Months Ended March 31, 2015
Net income attributable to Kimberly-Clark Corporation $ 468
Decrease in Kimberly-Clark Corporation's additional paid-in capital for acquisition (94 )
Change from net income attribution to Kimberly-Clark Corporation and transfers to noncontrolling interests $ 374
Assets Liabilities
March 31,
2016
December 31,
2015
March 31,
2016
December 31,
2015
Foreign currency exchange contracts $ 67
$ 56
$ 40
$ 27
Commodity price contracts

13
15
Total $ 67
$ 56
$ 53
$ 42
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 touch and improve people's lives every day. 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 Jackson Safety, are well-known for quality and trusted to help people around the world work better.
Three Months Ended March 31
2016 2015 Change
NET SALES
Personal Care $ 2,207
$ 2,308
-4.4 %
Consumer Tissue 1,496
1,574
-5.0 %
K-C Professional 763
795
-4.0 %
Corporate & Other 10
14
N.M.
TOTAL NET SALES $ 4,476
$ 4,691
-4.6 %
OPERATING PROFIT
Personal Care $ 449
$ 455
-1.3 %
Consumer Tissue 280
291
-3.8 %
K-C Professional 150
134
+11.9 %
Corporate & Other (65 ) (70 ) N.M.
Other (income) and expense, net 10
62
-83.9 %
TOTAL OPERATING PROFIT $ 804
$ 748
+7.5 %
March 31, 2016 December 31, 2015
(Summary of Inventories by Major Class) LIFO Non-LIFO Total LIFO Non-LIFO Total
Raw materials $ 99
$ 286
$ 385
$ 100
$ 297
$ 397
Work in process 113
98
211
110
93
203
Finished goods 499
705
1,204
525
689
1,214
Supplies and other
283
283

278
278
711
1,372
2,083
735
1,357
2,092
Excess of FIFO or weighted-average cost over
LIFO cost
(181 )
(181 ) (183 )
(183 )
Total $ 530
$ 1,372
$ 1,902
$ 552
$ 1,357
$ 1,909
March 31,
2016
December 31,
2015
Land $ 166
$ 164
Buildings 2,583
2,537
Machinery and equipment 13,583
13,393
Construction in progress 427
453
16,759
16,547
Less accumulated depreciation (9,571 ) (9,443 )
Total $ 7,188
$ 7,104
Pension settlement charges - In 2015, we recorded settlement-related charges from certain actions taken for our U.S. pension plan.
2014 Organization Restructuring - In 2014, we initiated a restructuring plan in order to improve organization efficiency and offset the impact of stranded overhead costs resulting from the spin-off of our health care business. Results in both 2016 and 2015 include charges related to this initiative.
Operating profit of $804 and net income attributable to Kimberly-Clark Corporation of $545 increased 7 percent and 16 percent, respectively, compared to the prior year. The increases were driven by lower expense in other (income) and expense, net and a lower effective tax rate.
Selected Financial Results Three Months Ended March 31
2016 2015 Change 2016 vs. 2015
Net Sales $ 4,476
$ 4,691
-4.6 %
Other (income) and expense, net 10
62
-83.9 %
Operating Profit 804
748
+7.5 %
Provision for income taxes 207
230
-10.0 %
Share of net income from equity companies 35
36
-2.8 %
Net Income 560
486
+15.2 %
Net Income Attributable to Kimberly-Clark Corporation 545
468
+16.5 %
Diluted Earnings per Share 1.50
1.27
+18.1 %
Three Months Ended March 31
2016 2015
Operating Profit, GAAP $ 804
$ 748
Plus adjustments for:
2014 Organization Restructuring 14
13
Pension Settlements
9
Charge Related to Venezuelan Operations
45
Adjusted Operating Profit $ 818
$ 815
Net Sales Percent Change Adjusted Operating Profit Percent Change
Volume 2
Volume 5
Net Price
Net Price 1
Mix/Other (a)
Input Costs 4
Currency (7 ) Cost Savings 12
Total (4.6 ) Currency Translation (6 )
(a) Mix/Other includes rounding Other (16 )
Total 0.4


Three Months Ended March 31
2016 2015
Other (income) and expense, net, GAAP $ 10
$ 62
Less adjustments for:
Pension Settlements
9
Charge Related to Venezuelan Operations
40
Adjusted other (income) and expense, net $ 10
$ 13


Three Months Ended March 31
2016 2015
Effective Tax Rate, GAAP 28.3 % 33.8 %
Provision for income taxes, GAAP $ 207
$ 230
Plus adjustments for:
2014 Organization Restructuring 4
8
Pension Settlements
3
Adjusted Provision for income taxes $ 211
$ 241
Adjusted Effective Tax Rate 28.3 % 32.3 %
Three Months Ended March 31
2016 2015
Net Income Attributable to Kimberly-Clark, GAAP $ 545
$ 468
Plus adjustments (net of tax) for:
2014 Organization Restructuring 10
5
Pension Settlements
6
Charge Related to Venezuelan Operations
45
Adjusted Net Income Attributable to Kimberly-Clark $ 555
$ 524
Three Months Ended March 31
2016 2015
Diluted Earnings Per Share, GAAP $ 1.50
$ 1.27
Plus adjustments for:
2014 Organization Restructuring 0.03
0.01
Pension Settlements
0.02
Charge Related to Venezuelan Operations
0.12
Adjusted Earnings Per Share $ 1.53
$ 1.42
Three Months Ended March 31
2016 2015
NET SALES
North America $ 2,373
$ 2,360
Outside North America 2,175
2,418
Intergeographic sales (72 ) (87 )
TOTAL NET SALES $ 4,476
$ 4,691
OPERATING PROFIT
North America $ 570
$ 528
Outside North America 309
352
Corporate & Other (a) (65 ) (70 )
Other (income) and expense, net (a) 10
62
TOTAL OPERATING PROFIT $ 804
$ 748
Three Months Ended March 31

Three Months Ended March 31
2016 2015 2016 2015
Net Sales $ 2,207
$ 2,308
Operating Profit $ 449
$ 455
Net Sales Percent Change Adjusted Operating Profit Percent Change
Volume 3
Volume 8
Net Price
Net Price (1 )
Mix/Other (a) 2
Input Costs 6
Currency (9 ) Cost Savings 14
Total (4.4 ) Currency Translation (8 )
(a) Mix/Other includes rounding Other (20 )
Total (1.3 )
Three Months Ended March 31

Three Months Ended March 31
2016 2015 2016 2015
Net Sales $ 1,496
$ 1,574
Operating Profit $ 280
$ 291
Net Sales Percent Change Adjusted Operating Profit Percent Change
Volume
Volume
Net Price 1
Net Price 4
Mix/Other (a) (1 ) Input Costs 1
Currency (5 ) Cost Savings 5
Total (5.0 ) Currency Translation (2 )
(a) Mix/Other includes rounding Other (12 )
Total (3.8 )
Three Months Ended March 31 Three Months Ended March 31
2016 2015 2016 2015
Net Sales $ 763
$ 795
Operating Profit $ 150
$ 134
Net Sales Percent Change Adjusted Operating Profit Percent Change
Volume 1
Volume 7
Net Price 1
Net Price 4
Mix/Other (a) (1 ) Input Costs 1
Currency (5 ) Cost Savings 9
Total (4.0 ) Currency Translation (5 )
(a) Mix/Other includes rounding Other (4 )
Total 11.9
We expect negative foreign currency translation effects on net sales and operating profit to be toward the low end of the previously assumed range of 5 to 6 percent. Currency transaction effects are also anticipated to negatively impact operating profit.
Our share of net income from equity companies is expected to be similar to, or down somewhat, compared to 2015. The prior assumption was for net income to be similar to, or up somewhat, compared to 2015. The update assumes more negative currency effects at K-C de Mexico.
Period (2016) 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
January 1 to January 31 103,000 $125.97 3,836,811 36,163,189
February 1 to February 29 503,000 129.78 4,339,811 35,660,189
March 1 to March 31 537,000 133.46 4,876,811 35,123,189
Total 1,143,000
KIMBERLY-CLARK CORPORATION
(Registrant)
By: /s/ Maria Henry
Maria Henry
Senior Vice President and
Chief Financial Officer
(principal financial officer)
By: /s/ Michael T. Azbell
Michael T. Azbell
Vice President and Controller
(principal accounting officer)
Exhibit No. Description
(3)a. Amended and Restated Certificate of Incorporation, dated April 30, 2009, incorporated by reference to Exhibit No. (3)a of the Corporation's Current Report on Form 8-K dated May 1, 2009.
(3)b. By-Laws, as amended December 14, 2015, incorporated by reference to Exhibit No. (3)b of the Corporation's Current Report on Form 8-K dated December 14, 2015.
(4). Copies of instruments defining the rights of holders of long-term debt will be furnished to the Securities and Exchange Commission on request.
(10)q. Form of Award Agreement under 2011 Equity Participation Plan for Performance Restricted Stock Units, filed herewith.
(31)a. Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), filed herewith.
(31)b. Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, filed herewith.
(32)a. Certification of Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.
(32)b. Certification of Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.
(101).INS XBRL Instance Document
(101).SCH XBRL Taxonomy Extension Schema Document
(101).CAL XBRL Taxonomy Extension Calculation Linkbase Document
(101).DEF XBRL Taxonomy Extension Definition Linkbase Document
(101).LAB XBRL Taxonomy Extension Label Linkbase Document
(101).PRE XBRL Taxonomy Extension Presentation Linkbase Document

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