FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number 1-225
KIMBERLY-CLARK CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 39-0394230
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P. O. Box 619100, Dallas, Texas 75261-9100
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 830-1200
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which registered
- ------------------------------------------------ ------------------------
Common Stock - $1.25 Par Value; Preferred Share New York Stock Exchange
Purchase Rights Chicago Stock Exchange
Pacific Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X . No .
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant's
knowledge, in definitive proxy or information statements incor-
porated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [X]
As of March 18, 1994, 161,014,091 shares of common stock were
outstanding, and the aggregate market value of the common stock
on such date (based on the closing price of these shares on the
New York Stock Exchange) of Kimberly-Clark Corporation held by
nonaffiliates was approximately $9,138 million.
(Continued)
<PAGE>
FACING SHEET
(Continued)
Documents Incorporated By Reference
Kimberly-Clark Corporation's 1993 Annual Report to Stockholders
and 1994 Proxy Statement contain much of the information
required in this Form 10-K, and portions of those documents are
incorporated by reference from the applicable sections of those
reports. The following chart identifies the sections of the
Corporation's 1993 Annual Report on Form 10-K which incorporate
by reference portions of the Corporation's 1993 Annual Report
to Stockholders or portions of the 1994 Proxy Statement. The
Items of this Form 10-K, where applicable, specify which
portions of such documents are incorporated by reference. The
portions of such documents that are not incorporated by
reference herein shall not be deemed to be filed with the
Commission as part of this Form 10-K.
<TABLE>
<CAPTION>
Document of Which Portions Parts of this Form 10-K
are Incorporated by Reference in Which Incorporated
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<S> <C>
1993 Annual Report to Stockholders Part I
(Year ended December 31, 1993) Item 1. Business
Part II
Item 5. Market for the Registrant's
Common Stock and Related Stockholder
Matters
Item 7. Management's Discussion and
Analysis of Financial Condition and
Results of Operation
Item 8. Financial Statements and
Supplementary Data
Part IV
Item 14. Exhibits, Financial Statement
Schedules, and Reports on Form 8-K
1994 Proxy Statement Part III
Item 10. Directors and Executive
Officers of the Registrant
Item 11. Executive Compensation
Item 12. Security Ownership of
Certain Beneficial Owners and
Management
Item 13. Certain Relationships and
Related Transactions
</TABLE>
<PAGE>
PART I
ITEM 1. BUSINESS
Kimberly-Clark Corporation was incorporated in Delaware in
1928. As used in Items 1, 2 and 7 of this Form 10-K Annual
Report, the term "Corporation" refers to Kimberly-Clark
Corporation and its consolidated subsidiaries. In the
remainder of this Form 10-K Annual Report, the terms "Kimberly-
Clark" or "Corporation" refer to Kimberly-Clark Corporation.
Financial information about product classes and results, and
foreign and domestic operations, and information about
principal products and markets of the Corporation, contained
under the caption "Management's Discussion and Analysis" and in
Note 12 to the Financial Statements contained in the 1993
Annual Report to Stockholders, are incorporated in this Item 1
by reference.
Description of the Corporation. Kimberly-Clark is principally
engaged in the manufacturing and marketing throughout the world
of a wide range of products for personal, business and
industrial uses. Most of these products are made from natural
and synthetic fibers using advanced technologies in absorbency,
fibers and nonwovens.
The Corporation's products and services are segmented into
three classes.
Class I includes tissue products for household, commercial,
institutional and industrial uses; infant, child, feminine and
incontinence care products; industrial and commercial wipers;
health care products; and related products. Class I products
are sold under a variety of well-known brand names, including
Kleenex, Huggies, Pull-Ups, Kotex, New Freedom, Lightdays,
Depend, Poise, Hi-Dri, Delsey, Spenco, Kimguard and Kimwipes.
Products for home use are sold through supermarkets, mass
merchandisers, drugstores, warehouse clubs, home health care
stores, variety stores, department stores and other retail
outlets, as well as to wholesalers. Other products in this
class are sold to distributors, converters and end-users.
Pulp produced by the Corporation, including amounts sold to
other companies, is included in Class I, except for pulp
manufactured for newsprint and certain specialty papers which
is included in Class II.
Class II includes newsprint, printing papers, premium business
and correspondence papers, tobacco industry papers and
products, technical papers, and related products.
Newsprint and groundwood printing papers are sold directly to
newspaper publishers and commercial printers. Other papers and
specialty products in this class are sold directly to users,
converters, manufacturers, publishers and printers, and through
paper merchants, brokers, sales agents and other resale agencies.
<PAGE>
PART I
(Continued)
ITEM 1. BUSINESS (Continued)
Class III includes aircraft services, commercial air
transportation and other products and services.
The Corporation owns various patents and trademarks registered
domestically and in certain foreign countries. The Corporation
considers the patents and trademarks which it owns and the
trademarks under which it sells certain of its products, in
each instance in the aggregate, to be material to its business.
Consequently, the Corporation seeks patent and trademark
protection by all available means, including registration. A
partial list of the Corporation's trademarks is included under
the caption "Trademarks" contained in the 1993 Annual Report to
Stockholders and is incorporated herein by reference.
EMPLOYEES. In its worldwide consolidated operations, the
Corporation had 42,131 employees as of December 31, 1993.
RAW MATERIALS. Cellulose fibers in the form of wood pulp are
the primary raw material for the Corporation's paper and tissue
products and are important components in disposable diapers,
training pants, feminine pads and incontinence care products.
Certain specialty papers are manufactured with other cellulose
fibers such as flax straw and cotton. Large amounts of
secondary and recycled fibers are also consumed, primarily in
tissue products. Superabsorbent materials are important
components in disposable diapers, training pants and
incontinence care products. Polypropylene and other synthetics
are primary raw materials for manufacturing nonwoven fabrics
which are used in disposable diapers, training pants, feminine
pads, incontinence and health care products and industrial
wipers. Most secondary fibers and all synthetics are
purchased. Wood pulp and nonwood cellulose fibers are produced
by the Corporation and purchased from others. The Corporation
considers the supply of such raw materials to be adequate to
meet the needs of its businesses.
For its worldwide consolidated operations, the Corporation's
pulp mills at Coosa Pines, Alabama, and Terrace Bay, Ontario,
had the capacity to supply about two-thirds of the 1993 wood
pulp requirements for products other than newsprint. The
Corporation's newsprint mill at Coosa Pines produces
substantially all of its own pulp requirements.
The Corporation owns or controls 5.1 million acres of
forestland in North America, primarily as a source of fiber for
pulp production. Approximately .4 million acres are owned and
4.7 million acres, principally in Canada, are held under long-term
Crown rights or leases.
Certain states have adopted laws and entered into agreements
with publishers requiring newspapers sold in such states to
contain specified amounts of recycled paper. The Corporation
provides certain newspaper publishers with newsprint containing
specified amounts of recycled paper.
COMPETITION. The Corporation competes in numerous domestic and
foreign markets. The number of competitors and the Corpora-
tion's competitive positions in those markets vary. In
general, in the sale of its principal products, the Corporation
faces strong competition from other manufacturers, some of
which are larger and more diversified than the Corporation.
The Corporation has one major competitor, and several regional
competitors, in its disposable diaper business and several
major competitors in its household and other tissue-based
products, and feminine and incontinence care products
businesses.
<PAGE>
During 1993, in the U.S., private label and economy branded
competitors continued to expand distribution of their
disposable training pants nationally in competition with the
Corporation's training pants business, and, in the fourth
quarter, a major competitor initiated regional introductions of
a branded training pant. In foreign markets, the Corporation
has encountered increased competition and expects to encounter
significant competition in connection with its introduction of
training pants and diapers in Europe. Depending on the
characteristics of the market involved, the Corporation com-
petes on the basis of product quality and performance, price,
service, packaging, distribution, advertising and promotion.
RESEARCH AND DEVELOPMENT. At year-end 1993, approximately
1,200 of the Corporation's employees were engaged in research
and development activities and were located in Neenah,
Wisconsin; Roswell, Georgia; Coosa Pines, Alabama; Troy, Ohio;
Munising, Michigan; Waco, Texas; the United Kingdom; and
France. A major portion of total research and development
expenditures is directed toward new or improved personal care,
health care, household products, and nonwoven materials.
Consolidated research and development expenditures were $158.5
million in 1993, $156.1 million in 1992 and $148.8 million in
1991.
ENVIRONMENTAL MATTERS. Capital expenditures for environmental
controls to meet legal requirements and otherwise relating to
the protection of the environment at the Corporation's
facilities in the United States are estimated to be $54 million
in 1994 and $15 million in 1995. Such expenditures are not
expected to have a material effect on the Corporation's total
capital expenditures, consolidated earnings or competitive
position; however, these estimates could be modified as a
result of changes in the Corporation's plans, changes in legal
requirements or other factors.
RISKS FOR FOREIGN OPERATIONS. The products of the Corporation
and its equity companies are made in 21 countries outside the
U.S. Consumer products made abroad or in the U.S. are marketed
in approximately 150 countries. Because these countries are so
numerous, it is not feasible to generally characterize the
risks involved. Such risks vary from country to country and
include such factors as tariffs, trade restrictions, changes in
currency value, economic conditions and international
relations.
INSURANCE. The Corporation maintains coverage consistent with
industry practice for most risks that are incident to its
operations.
ITEM 2. PROPERTIES
Management believes that the Corporation's production
facilities are suitable for their purpose and adequate to
support its businesses. The extent of utilization of
individual facilities varies, but generally they operate at or
near capacity. New facilities of the Corporation are under
construction and others are being expanded. Principal
facilities and products or groups of products made at these
facilities are listed on the following pages. In addition, the
principal facilities of the Corporation's equity companies and
the products or groups of products made at such facilities are
included on the following pages. Products described as
consumer, service and/or nonwoven products include tissue
products for household, commercial, institutional and
industrial uses; infant, child, feminine and incontinence care
products; industrial and commercial wipers; health care
products; and related products.
<PAGE>
PART I
(Continued)
ITEM 2. PROPERTIES (Continued)
Headquarters Locations
Dallas, Texas
Roswell, Georgia
Neenah, Wisconsin
Administrative Center
Knoxville, Tennessee
Production and Service Facilities
United States
Alabama
Ashville - Wood chips
Coosa Pines - Newsprint, groundwood printing papers, pulp,
seedling nursery
Goodwater - Lumber
Nixburg - Wood chips
Roanoke - Wood chips
Westover - Lumber
Arizona
Tucson - Nonwoven products
Arkansas
Conway - Consumer products
Maumelle - Consumer products
California
Fullerton - Consumer products
Connecticut
New Milford - Consumer products
Georgia
LaGrange - Nonwoven materials and products
Massachusetts
Lee - Tobacco industry papers, thin papers, service products
Westfield - Aviation services
Michigan
Munising - Printing and base papers
Mississippi
Corinth - Nonwoven materials, service products
New Jersey
Montvale - Aviation services
Spotswood - Tobacco industry papers and products
New York
Ancram - Tobacco industry papers and products
North Carolina
Hendersonville - Nonwoven materials and products
Lexington - Nonwoven materials and products
Ohio
Troy - Adhesive-coated products
Oklahoma
Jenks - Consumer products
South Carolina
Beech Island - Consumer and service products
<PAGE>
Tennessee
Loudon - Service products
Memphis - Consumer and service products
Texas
Dallas - Aviation services
Paris - Consumer products
Waco - Consumer and service products
Utah
Ogden - Consumer products
Wisconsin
Appleton - Aviation services
Milwaukee - Commercial airline service
Neenah - Consumer and service products, nonwoven materials,
business and correspondence papers
Whiting - Business and correspondence papers
Outside the United States
Australia
*Albury - Nonwoven materials and products
*Ingleburn (near Sydney) - Consumer products
*Lonsdale (near Adelaide) - Consumer products
*Millicent - Consumer and service products
*Seven Hills (near Sydney) - Consumer and service products
*Tantanoola - Pulp
*Warwick Farm (near Sydney) - Consumer and service products
Brazil
Mogi das Cruzes (near Sao Paulo) - Consumer and service
products
Canada
Huntsville, Ontario - Consumer and service products
Rexdale, Ontario (near Toronto) - Consumer and service
products
St. Catharines, Ontario - Consumer and service products,
base papers
St. Hyacinthe, Quebec - Consumer products
Terrace Bay, Ontario - Pulp
Winkler, Manitoba (mobile operations) - Flax tow
Colombia
*Barbosa (near Medellin) - Tobacco industry papers, service
products
*Guarne (near Medellin) - Consumer and service products
*Pereira - Consumer and service products, nonwoven materials
Costa Rica
Cartago - Consumer products
El Salvador
Sitio del Nino (near San Salvador) - Consumer and service
products
France
Le Mans - Tobacco industry products
Malaucene - Tobacco industry papers
Quimperle - Tobacco industry papers
Rouen - Consumer products
Villey-Saint-Etienne - Consumer products
Germany
Koblenz - Consumer and service products
*Equity company production facility
<PAGE>
PART I
(Continued)
ITEM 2. PROPERTIES (Continued)
Honduras
Cortes - Nonwoven products
Indonesia
*Medan - Tobacco industry papers
Korea
Anyang (near Seoul) - Consumer and service products
Kimcheon (near Taegu) - Consumer and service products
Taejon - Consumer products
Malaysia
*Petaling Jaya (near Kuala Lumpur) - Consumer and service
products
Mexico
*Bajio (near San Juan del Rio) - Consumer and service
products; business, printing and school papers
*Cuautitlan (near Mexico City) - Consumer and service
products
Empalme - Nonwoven products
Hermosillo - Nonwoven products
Magdalena - Nonwoven products
*Naucalpan (near Mexico City) - Consumer and service
products; business, printing and school papers; tobacco
industry papers; pulp
Nogales - Nonwoven products
*Orizaba - Consumer and service products; business, printing
and school papers; pulp
*Ramos Arizpe - Consumer products
Santa Ana - Nonwoven products
Netherlands
Veenendaal - Consumer and service products
Panama
Panama City - Consumer and service products
Philippines
San Pedro, Laguna (near Manila) - Consumer and service
products, tobacco industry papers
Saudi Arabia
*Al-Khobar - Consumer and service products
Singapore
Singapore - Consumer and service products
South Africa
**Cape Town - Consumer and service products
**Germiston (near Johannesburg) - Consumer and service
products
**Springs (near Johannesburg) - Consumer and service products
Thailand
Patumthanee (near Bangkok) - Consumer and service products
United Kingdom
Barton-upon-Humber - Consumer products
Flint - Nonwoven materials, service products
Larkfield (near Maidstone) - Consumer and service products
Prudhoe (near Newcastle-upon-Tyne) - Consumer and service
products, recycled fiber
Sealand (near Chester) - Consumer products
Venezuela
Guacara - Consumer products
* Equity company production facility
** Other companies
<PAGE>
ITEM 3. LEGAL PROCEEDINGS
The following is a brief description of material pending legal
proceedings to which the Corporation or any of its subsidiaries
is a party or of which any of their properties is subject:
A. On March 11, 1993, a class action lawsuit was filed against
the Corporation in the United States District Court, Middle
District of Tennessee (the "Tennessee District Court"), on
behalf of certain retirees who were formerly represented by
the United Paperworkers International Union ("UPIU"). The
Corporation's Motion to Transfer this action to the Eastern
District of Wisconsin was granted.
A similar action was filed in the United States District
Court, Central District of California, on behalf of retirees
who were formerly represented by the Association of Western
Pulp and Paper Workers ("AWPPW") at the Corporation's
Fullerton, California facility. This second action was
voluntarily dismissed and refiled in the Tennessee District
Court on March 25, 1993. The Corporation's Motion to
Transfer this action to the Central District of California
was granted.
The parties to both actions have executed settlement agreements,
dated March 15, 1994, providing for the voluntary dismissal of
such actions, without prejudice, for a period of one year from
the date that such agreements are approved by the respective
courts, subject to certain conditions and circumstances
allowing for the earlier refiling of such actions. On March 23, 1994,
the court for the Eastern District of Wisconsin entered an order
approving the settlement agreement with respect to the UPIU
action. The settlement agreement with respect to the AWPPW
action has been submitted to the court for the Central
District of California for its consideration.
The actions relate to certain changes made by the
Corporation to its retiree medical plans effective January
1, 1993. The allegations in each action are that the
Corporation's retiree medical benefits were vested and could
not be unilaterally amended by the Corporation, and that,
therefore, the retirees are entitled to an unalterable level
of medical benefits. In the event that the AWPPW settlement
agreement is not approved by the court, or the
actions are refiled pursuant to the terms of the settlement
agreements, management has determined that under Financial
Accounting Standard No. 106, and based on prevailing market
interest rates, the estimated cost to the Corporation of not
being able to make any amendments to its retiree medical
plans with respect to the two putative classes of retirees
would result in a maximum pretax charge of approximately
$5.7 million per year.
B. Since September 28, 1990, about 60 employees of contractors
who allegedly worked at the Corporation's mill in Coosa
Pines, Alabama at some point in their careers filed separate
actions in the United States District Court for the Northern
District of Texas against the Corporation and approximately
36 other companies. Most of these cases were transferred to
the Federal District Court, Northern District of Alabama and
subsequently have been consolidated in the Federal District
Court, Eastern District of Pennsylvania where all asbestos
cases pending at such time in United States Federal District
Courts were consolidated. Approximately 4,713 individuals
refiled three of such cases in the District Court of Orange
County, Texas. The actions allege, with respect to the
Corporation, that the ownership of facilities containing
asbestos caused the plaintiffs to suffer physical injury.
The actions seek unspecified damages. The Corporation has
denied the allegations and has asserted, among other things,
that the claims fail to state a claim upon which relief can
be granted and that such actions are barred by applicable
statutes of limitation. These actions presently are in the
discovery phase.
<PAGE>
PART I
(Continued)
ITEM 3. LEGAL PROCEEDINGS (Continued)
C. On September 28, 1992, the Corporation filed an action
against Drypers Corporation, Pope & Talbot, Inc. and Pope &
Talbot, Wis., Inc. in the United States District Court,
Western District of Washington, alleging patent infringement
with respect to the defendants' use of containment flaps in
disposable diapers. In June 1993, each of the defendants
filed counterclaims against the Corporation alleging that
the Corporation misused its patent in violation of the
federal antitrust laws. The defendants are seeking
invalidation of the patent, treble damages based on the
defendants' attorneys fees for defending the patent suit,
and the defendants' attorney fees for prosecuting the
antitrust counterclaim. The case is currently in discovery.
A trial date has been set for June 7, 1994.
The Corporation also is subject to routine litigation from time
to time which individually or in the aggregate is not expected
to have a material adverse effect on the Corporation's business
or results of operations.
Environmental Matters
- ---------------------
(See the Corporation's 1993 Annual Report to Stockholders under
the "Environmental Matters" section of "Management's Discussion
and Analysis.")
The Corporation has been named a potentially responsible party
("PRP") under the provisions of the federal Comprehensive
Environmental Response, Compensation and Liability Act
("CERCLA"), or analogous state statute, at 21 waste disposal
sites, none of which, in management's opinion, could have a
material adverse impact on the Corporation's business or
results of operations. Notwithstanding its opinion, management
believes it appropriate to disclose the following recent
developments concerning three of these sites where the extent
of the Corporation's liability cannot yet be established:
A. The South 8th Street Landfill Site, located across the
Mississippi River from Memphis, Tennessee, in Crittenden
County, Arkansas, is a 30-acre site that received municipal
and industrial waste from the 1950's to the early 1980's.
The site is divided into three separate landfill disposal
areas and an oily sludge pit area. A refining company (the
"Refiner") apparently used the pit area for the disposal of
waste sludge from its oil re-refining process through
November 1969.
On September 9, 1992, the Environmental Protection Agency
(the "EPA") identified Kimberly-Clark's Memphis mill as a
PRP at the site. The mill was linked to the site by an
affidavit of an employee of the Refiner which alleged that
the Refiner picked up waste oil at the mill for re-refining.
While Kimberly-Clark did not send hazardous wastes to the
site, it did send used oil to the Refiner for reclamation.
The EPA recently conducted a Remedial Investigation and
Feasibility Study with respect to the site. Based on such
study, the EPA's preferred remedial alternative for the
landfill area is organic treatment, stabilization and
disposal in a licensed, nonhazardous landfill at a cost of
$14.8 million to $18.1 million. The EPA's preferred
remedial alternative for the oily sludge pit is natural soil
cover at a cost of $2.3 million. There are approximately
103 members, including Kimberly-Clark, of the PRP group with
respect to the site. The Corporation's estimated share of
total site remediation cost, if any, cannot yet be
established.
<PAGE>
B. In August 1992, Kimberly-Clark's Spotswood, New Jersey mill
received an information request from the New Jersey
Department of Environmental Protection and Energy ("NJDEPE")
with respect to the Jones Industrial Service Landfill.
Kimberly-Clark currently has no information about the site
or the status of the NJDEPE's actions to date. Kimberly-
Clark does not have records indicating that the mill used
the site. However, the Spotswood mill has used an
industrial company for nonhazardous waste disposal services
and has received routing sheets from such company which
indicate that the company may have sent three loads of
Spotswood mill waste to the site in September 1980. Until
Kimberly-Clark receives the site information requested from
the State of New Jersey, no determination regarding the
extent of Kimberly-Clark's liability, if any, can be made.
C. On February 6, 1991, the NJDEPE identified the Corporation
as a PRP under the provisions of the New Jersey Spill
Compensation and Control Act for remediation of the Global
Sanitary Landfill waste disposal site located in Old Bridge
Township, New Jersey based on the Corporation's disposal of
waste at such site. The EPA has designated the disposal
site as a state-led site under CERCLA with the NJDEPE acting
as lead agency. In May 1991, the Corporation signed a PRP
agreement and paid an administrative assessment. In August
1993, a consent decree was executed by the State of New
Jersey and the PRPs, pursuant to which the Corporation
agreed to pay $575,000 for its share of Phase I cleanup
costs. The Corporation's share of Phase II cleanup costs,
if any, cannot yet be established.
<PAGE>
PART I
(Continued)
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during
the fourth quarter of 1993.
EXECUTIVE OFFICERS OF THE REGISTRANT
The names and ages of the executive officers of the Corporation
as of March 1, 1994, together with certain biographical
information are as follows:
JAMES D. BERND, 60, was elected Executive Vice President
effective December 1, 1990. Mr. Bernd joined Kimberly-Clark in
1959 as a trainee at the Niagara Falls, New York, mills. He
was appointed Marketing Manager for KLEENEX(R) facial tissue in
1973 and Business Manager for Household Products in 1975. Mr.
Bernd was appointed Division Vice President in 1976, President
of the Household Products Sector in 1985 and assumed his
present position in 1990. He is responsible for the Household
Products and Service and Industrial Sectors, U.S. Consumer
Sales, Consumer Business Services and Safety and Quality
Assurance. Mr. Bernd is a member of the University of
Wisconsin School of Business Board of Visitors, the Riverside
Medical Center - Waupaca Board of Trustees, and the Associated
Bank, National Association Board of Directors. He has been a
director of the Corporation since 1990.
JOHN W. DONEHOWER, 47, was elected Senior Vice President and
Chief Financial Officer in 1993. Mr. Donehower joined
Kimberly-Clark in 1974. He was appointed Director of Finance -
Europe in 1978, Vice President, Marketing and Sales - Nonwovens
in 1981, Vice President, Specialty Papers in 1982, Managing
Director, Kimberly-Clark Australia Pty. Limited in 1982, and
Vice President, Professional Health Care, Medical and Nonwoven
Fabrics in 1985. He was appointed President, Specialty
Products - U.S. in 1987, and President - World Support Group in
1990.
O. GEORGE EVERBACH, 55, was appointed Senior Vice President -
Law and Government Affairs in 1988. Mr. Everbach joined Kimberly-Clark
in 1984. His responsibilities within the Corporation have included
direction of legal, human resources and administrative functions. He
was elected Vice President and General Counsel in 1984, Vice President,
Secretary and General Counsel in 1985, and Senior Vice President and
General Counsel in 1986.
THOMAS J. FALK, 35, was elected Group President - Infant and
Child Care in 1993. Mr. Falk joined Kimberly-Clark in 1983.
His responsibilities within the Corporation have included
internal audit, financial and strategic analysis and operations
management. He was appointed Vice President - Operations
Analysis and Control in 1990 and Senior Vice President -
Analysis and Administration in 1992.
JAMES G. GROSKLAUS, 58, was elected Executive Vice President
effective December 1, 1990. He is responsible for the Pulp and
Newsprint, Paper and Specialty Products Sectors, and also is
responsible for various staff functions. Employed by the
Corporation since 1957, Mr. Grosklaus was appointed Vice
President in 1972 and Divisional Vice President in 1975, and
was elected Senior Vice President effective January 1, 1979.
He was appointed President, K-C Health Care, Nonwoven and
Industrial Group in 1981, Senior Staff Vice President in 1982,
Senior Vice President in 1983 and President, Technical Paper
and Specialty Products in 1985, and elected Executive Vice
President in January 1986. In 1988, he was appointed President
- - North American Pulp and Paper Sector. He is a member of the
Emory University Board of Visitors and the Woodruff Arts Center
Board of Trustees. He has been a director of the Corporation
since 1987.
<PAGE>
EXECUTIVE OFFICERS OF THE REGISTRANT (Continued)
TIMOTHY E. HOEKSEMA, 47, was appointed President -
Transportation Sector in 1988. Mr. Hoeksema joined Kimberly-
Clark in 1969. Prior to 1977, Mr. Hoeksema served as Chief
Pilot of Kimberly-Clark. He was elected President of K-C
Aviation Inc., a wholly owned subsidiary of Kimberly-Clark, in
1977, and President of Midwest Express Airlines, Inc., a wholly
owned subsidiary of K-C Aviation Inc., in 1983.
JAMES T. MCCAULEY, 55, was elected Executive Vice President in
1990. Mr. McCauley joined Kimberly-Clark in 1969. He was
elected Treasurer in 1980, Vice President and Treasurer in
1980, appointed Vice President - Nonwoven Operations in 1984,
Senior Vice President, Kimberly-Clark Newsprint & Pulp and
Forest Products in 1984, President, North American Pulp and
Newsprint Sector in 1985, President, Health Care and Nonwovens
Sector in 1987, and President - Nonwovens and Technical
Products Sector in 1988. Mr. McCauley was appointed President -
Nonwovens, Medical and Technical Products Sector in 1988 and
was appointed President - Nonwovens and Professional Health
Care Sector, Far East Operations and World Support Group in
1990.
WAYNE R. SANDERS, 46, was elected Chief Executive Officer of
the Corporation effective December 19, 1991, and Chairman of
the Board effective March 31, 1992. He previously had been
elected President and Chief Operating Officer in December 1990.
Employed by the Corporation in 1975, Mr. Sanders was appointed
Vice President of Kimberly-Clark Canada Inc., a wholly owned
subsidiary of the Corporation, in 1981. He held various
positions in that company, and was appointed Director and
President in 1984. Mr. Sanders was elected Senior Vice
President of Kimberly-Clark Corporation in 1985 and was
appointed President - Infant Care Sector in 1987, President -
Personal Care Sector in 1988 and President - World Consumer,
Nonwovens and Service and Industrial Operations in 1990. He is
a member of the Lawrence University Board of Trustees and the
Marquette University Board of Trustees. He has been a director
of the Corporation since 1989.
KATHI P. SEIFERT, 44, was elected Group President - Feminine
and Adult Care effective January 7, 1994. Ms. Seifert joined
Kimberly-Clark in 1978. Her responsibilities in the
Corporation have included various marketing positions within
the Service and Industrial, Consumer Tissue and Feminine
Products business sectors. She was appointed President -
Feminine Care Sector, in 1991.
JOHN A. VAN STEENBERG, 46, was elected President - European
Consumer and Service & Industrial Operations effective January
1, 1994. Mr. Van Steenberg joined Kimberly-Clark in 1978. His
previous responsibilities have included operations and major
project management. He was appointed Managing Director of
Kimberly-Clark Australia Pty. Limited in 1990.
<PAGE>
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
STOCKHOLDER MATTERS
The dividend and market price data included in Note 11 to the
Financial Statements, and the information covered by the
captions "Dividends and Dividend Reinvestment Plan" and "Stock
Exchanges" contained in the 1993 Annual Report to Stockholders
are incorporated in this Item 5 by reference.
As of March 18, 1994, the Corporation had 25,121 stockholders
of record.
ITEM 6. SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>
(Millions of dollars Year Ended December 31
-----------------------------------------------------
except per share amounts) 1993 1992 1991 1990 1989
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Sales ................ $6,972.9 $7,091.1 $6,776.9 $6,407.3 $5,733.6
Restructuring Charge (2).. -- 250.0 -- -- --
Operating Profit ......... 793.5 543.1 741.8 753.6 673.4
Share of Net Income of
Equity Companies ........ 98.0 82.9 72.8 58.2 49.3
Income Before Cumulative
Effects of Accounting
Changes ................ 510.9 345.0 508.3 432.1 423.8
Net Income (1) (2) (3) (4) 510.9 135.0 508.3 432.1 423.8
Per Share Basis:
Income Before Cumulative
Effects of Accounting
Changes ............... 3.18 2.15 3.18 2.70 2.63
Net Income (1) (2) (3) (4) 3.18 .84 3.18 2.70 2.63
Cash Dividends Declared.. 1.29 2.07 1.52 1.36 1.30
Cash Dividends Paid .... 1.70 1.64 1.45 1.35 1.18
Total Assets ............. 6,380.7 6,029.1 5,704.8 5,283.9 4,923.0
Long-Term Debt ........... 933.1 994.6 874.7 728.5 745.1
Stockholders' Equity ..... 2,457.2 2,191.1 2,519.7 2,259.7 2,085.8
<FN>
(1) Net income for 1993 includes a charge of $15.5 million
($.10 per share) for the effect of the enactment of the
1993 Tax Act.
(2) Results for 1992 include a pretax charge of $250.0 million
or $172.0 million after-tax ($1.07 per share) related to
the restructuring of the consumer and service products
operations in Europe and certain operations in North
America.
(3) Net income for 1992 includes net after-tax charges of
$210.0 million ($1.31 per share) for the cumulative
effects of adopting the required accounting rules for
postretirement health care and life insurance benefits and
for income taxes.
(4) Net income for 1991 and 1990 includes a favorable
adjustment of $20.0 million ($.13 per share) and a charge
of $44.0 million ($.28 per share), respectively, related
to the disposition of Spruce Falls Power and Paper
Company, Limited, a former 50.5-percent-owned Canadian
newsprint subsidiary.
</TABLE>
<PAGE>
PART II
(Continued)
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
The information under the caption "Management's Discussion and
Analysis" contained in the 1993 Annual Report to Stockholders
is incorporated in this Item 7 by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements of the Corporation and its
subsidiaries and independent auditors' report contained in the
1993 Annual Report to Stockholders are incorporated in this
Item 8 by reference.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
None.
<PAGE>
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The section of the 1994 Proxy Statement captioned "Certain
Information Regarding Directors and Nominees" under "Proposal
1. Election of Directors" identifies members of the board of
directors of the Corporation and nominees, and is incorporated
in this Item 10 by reference.
See also "EXECUTIVE OFFICERS OF THE REGISTRANT" appearing in
Part I hereof.
ITEM 11. EXECUTIVE COMPENSATION
The information in the section of the 1994 Proxy Statement
captioned "Executive Compensation" under "Proposal 1. Election
of Directors" is incorporated in this Item 11 by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
The information in the sections of the 1994 Proxy Statement
captioned "Security Ownership of Management" and "Other
Principal Holder of Voting Securities" under "Proposal 1.
Election of Directors" is incorporated in this Item 12 by
reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The information in the sections captioned "Certain Transactions
and Business Relationships" and "Executive Compensation --
Compensation Committee Interlocks and Insider Participation"
under "Proposal 1. Election of Directors" of the 1994 Proxy
Statement is incorporated in this Item 13 by reference.
<PAGE>
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
ON FORM 8-K
(a) DOCUMENTS FILED AS PART OF THIS REPORT.
1. Financial statements:
The Consolidated Balance Sheet as of December 31, 1993 and
1992, and the related Consolidated Income Statement and
Consolidated Cash Flow Statement for the years ended December
31, 1993, 1992 and 1991, and the related Notes thereto, and the
Independent Auditors' Report are incorporated in Part II, Item
8 of this Form 10-K by reference to the Financial Statements
contained in the 1993 Annual Report to Stockholders.
2. Financial statement schedules:
The following information is filed as part of this Form 10-K
and should be read in conjunction with the consolidated
financial statements in the 1993 Annual Report to Stockholders.
Independent Auditors' Report
Schedules for Kimberly-Clark Corporation and Subsidiaries:
V Property, Plant and Equipment
VI Accumulated Depreciation of Property, Plant and Equipment
VIII Valuation and Qualifying Accounts
IX Short-Term Borrowings
All other schedules have been omitted because they were not
applicable or because the required information has been
included in the financial statements or notes thereto.
3. Exhibits:
Exhibit No.(3)a. Restated Certificate of Incorporation of
Kimberly-Clark Corporation, dated April 16, 1987, incorporated
by reference to Exhibit No. 4e. of the Kimberly-Clark Corporation
Form S-8 filed on February 16, 1993 (File No. 33-58402).
Exhibit No.(3)b. By-Laws of Kimberly-Clark Corporation, as
amended April 22, 1993, incorporated by reference to Exhibit No.(3) of
the Kimberly-Clark Corporation Form 10-Q for the quarterly
period ended June 30, 1993.
Exhibit No.(4). Copies of instruments defining the rights of
holders of long-term debt will be furnished to the Securities
and Exchange Commission on request.
<PAGE>
PART IV
(Continued)
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
ON FORM 8-K
(Continued)
Exhibit No.(10)a. Kimberly-Clark Corporation 1976 Equity
Participation Plan, as amended effective May 1, 1987,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992.
Exhibit No.(10)b. Kimberly-Clark Corporation Management
Achievement Award Program, incorporated by reference to Exhibit
No. (10)b of the Kimberly-Clark Corporation Form 10-K for the
year ended December 31, 1990.
Exhibit No.(10)c. Kimberly-Clark Corporation Executive
Severance Plan, incorporated by reference from the Kimberly-
Clark Corporation Form 10-K for the year ended December 31,
1992.
Exhibit No.(10)d. Second Amended and Restated Deferred
Compensation Plan for Directors of Kimberly-Clark Corporation,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992.
Exhibit No.(10)e. Kimberly-Clark Corporation 1986 Equity
Participation Plan, as amended effective May 1, 1987,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992.
Exhibit No. (10)f. Kimberly-Clark Corporation 1992 Equity
Participation Plan, incorporated by reference to Exhibit No.
4A. of the Kimberly-Clark Corporation Form S-8 filed on June
26, 1992 (File No. 33-49050).
Exhibit No.(11). The net income per share of common stock
computations for each of the periods included in Part II, Item
6. Selected Financial Data, of this Form 10-K are based on
average common shares outstanding during each of the respective
periods. The only "common stock equivalents" or other poten-
tially dilutive securities or agreements (as defined in
Accounting Principles Board Opinion No. 15) in Kimberly-Clark
Corporation's capital structure during the periods presented were
options outstanding under the Corporation's Equity Participation Plans.
Computations of "primary" and "fully diluted" net income per
share assume the exercise of outstanding stock options under
the "treasury stock method." The table below presents the
amounts by which the earnings per share amounts presented in
Item 6 would be reduced if the "treasury stock method" had been
used.
Primary Fully Diluted
------- -------------
1993 $.01 $.01
1992 - -
1991 .02 .02
1990 .01 .01
1989 .01 .02
Exhibit No.(12). Computation of ratio of earnings to fixed
charges for the five years ended December 31, 1993.
<PAGE>
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
ON FORM 8-K
(Continued)
Exhibit No.(13). Portions of the Kimberly-Clark Corporation
1993 Annual Report to Stockholders incorporated by reference in
this Form 10-K.
Exhibit No.(21). Consolidated Subsidiaries and Equity Companies
of Kimberly-Clark Corporation are identified in the 1993 Annual
Report to Stockholders, and such information is incorporated in
this Form 10-K by reference.
Exhibit No.(23). Independent Auditors' Consent
Exhibit No.(24). Powers of Attorney
(b) Reports on Form 8-K
(i) The Corporation filed a Current Report on Form 8-K dated
February 17, 1994, which reported the Corporation's 1993
audited financial statements and management's discussion
and analysis.
(ii) The Corporation filed a Current Report on Form 8-K dated
February 18, 1994 which reported the offering of
$100 million principal of debt securities by the
Corporation.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Kimberly-Clark Corporation
March 24, 1994
By: /s/ John W. Donehower
-----------------------------------------
John W. Donehower
Senior Vice President and
Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and
on the dates indicated.
/s/ Wayne R. Sanders Chairman of the Board March 24, 1994
- ----------------------------
Wayne R. Sanders and Chief Executive Officer
and Director
/s/ John W. Donehower Senior Vice President and March 24, 1994
- ----------------------------
John W. Donehower Chief Financial Officer
/s/ Randy J. Vest Vice President - March 24, 1994
- ----------------------------
Randy J. Vest Controller (principal
accounting officer)
Directors
John F. Bergstrom Phala A. Helm, M.D.
James D. Bernd William E. LaMothe
Pastora San Juan Cafferty Louis E. Levy
Paul J. Collins Frank A. McPherson
Claudio X. Gonzalez H. Blair White
James G. Grosklaus
By: /s/ O. George Everbach
------------------------------------
O. George Everbach, Attorney-in-Fact March 24, 1994
<PAGE>
INDEPENDENT AUDITORS' REPORT
Kimberly-Clark Corporation:
We have audited the consolidated financial statements of
Kimberly-Clark Corporation as of December 31, 1993 and 1992,
and for each of the three years in the period ended December
31, 1993, and have issued our report thereon dated January 28,
1994, which report includes an explanatory paragraph concerning
the Corporation's changes in its methods of accounting for
income taxes and postretirement benefits other than pensions to
conform with Statements of Financial Accounting Standards No.
109 and No. 106, respectively; such consolidated financial
statements and report are included in your 1993 Annual Report
and are incorporated herein by reference. Our audits also
included the consolidated financial statement schedules of
Kimberly-Clark Corporation, listed in Item 14. These
consolidated financial statement schedules are the
responsibility of the Corporation's management. Our
responsibility is to express an opinion based on our audits.
In our opinion, such consolidated financial statement
schedules, when considered in relation to the basic
consolidated financial statements taken as a whole, present
fairly in all material respects the information set forth
therein.
/s/ Deloitte & Touche
- ---------------------
DELOITTE & TOUCHE
Dallas, Texas
January 28, 1994
<PAGE>
SCHEDULE V Kimberly-Clark Corporation and Subsidiaries
PROPERTY, PLANT AND EQUIPMENT
FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992
(Millions of dollars)
<TABLE>
<CAPTION>
Balance at Balance Annual
Beginning Additions Other Changes- at End of Depreciation
Classification of Period at Cost(a) Retirements Add (Deduct)(b) Period Rates
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
December 31, 1993
Depreciable property
Timberlands .................. $ 50.5 $ 1.8 $ .9 $ .1 $ 51.5 Various
Land improvements ............ 141.9 15.0 .5 11.1 167.5 2% - 10%
Buildings .................... 935.5 86.4 5.6 (11.8) 1,004.5 2% - 10%
Machinery and equipment ...... 4,049.5 565.9 140.6 (63.7) 4,411.1 3.5% - 20%
Furniture and fixtures ....... 261.1 44.9 8.9 (2.4) 294.7 5% - 20%
Autos, trucks and airplanes .. 139.5 23.5 12.2 (.5) 150.3 5% - 25%
Other depreciable property ... 17.1 9.5 2.1 (13.5) 11.0 4% - 20%
-------- ------- ------ ------- --------
Total - depreciable
property ................... 5,595.1 747.0 170.8 (80.7) 6,090.6
-------- ------- ------ ------- --------
Nondepreciable property
Land ......................... 43.1 27.1 .1 (.6) 69.5
Plant being constructed ...... 335.9 (119.6)(c) .2 (3.4) 212.7
-------- ------- ------ ------- --------
Total - nondepreciable
property ................... 379.0 (92.5) .3 (4.0) 282.2
-------- ------- ------ ------- --------
Total ..................... $5,974.1 $ 654.5 $171.1 $ (84.7) $6,372.8
======== ======= ====== ======= ========
December 31, 1992
Depreciable property
Timberlands .................. $ 48.6 $ 2.0 $ .1 $ - $ 50.5 Various
Land improvements ............ 135.1 11.6 .2 (4.6) 141.9 2% - 10%
Buildings .................... 903.2 60.0 3.5 (24.2) 935.5 2% - 10%
Machinery and equipment ...... 3,854.7 409.8 76.0 (139.0) 4,049.5 3.5% - 20%
Furniture and fixtures ....... 242.0 32.7 9.1 (4.5) 261.1 5% - 20%
Autos, trucks and airplanes .. 128.0 23.6 11.4 (.7) 139.5 5% - 25%
Other depreciable property ... 14.5 14.0 .3 (11.1) 17.1 4% - 20%
-------- ------- ------ ------- --------
Total - depreciable
property ................... 5,326.1 553.7 100.6 (184.1) 5,595.1
-------- ------- ------ ------- --------
Nondepreciable property
Land ......................... 40.4 3.6 .1 (.8) 43.1
Plant being constructed ...... 225.3 133.2(c) - (22.6) 335.9
-------- ------- ------ ------- --------
Total - nondepreciable
property ................... 265.7 136.8 .1 (23.4) 379.0
-------- ------- ------ ------- --------
Total ..................... $5,591.8 $ 690.5 $100.7 $(207.5) $5,974.1
======== ======= ====== ======= ========
<FN>
(a) Amounts represent cash additions or capitalized interest on significant
construction projects. See Note 10 to financial statements.
(b) Includes reclassifications, transfers and currency effects of translating property,
plant and equipment at current rates under SFAS No. 52. 1992 includes gross
property written down as part of the restructuring charge. See Notes 1, 5 and 9 to
financial statements.
(c) Additions to plant being constructed are net of amounts reclassified to depreciable
property captions when construction projects are completed.
</TABLE>
<PAGE>
SCHEDULE V Kimberly-Clark Corporation and Subsidiaries
PROPERTY, PLANT AND EQUIPMENT
FOR THE YEAR ENDED DECEMBER 31, 1991
(Millions of dollars)
<TABLE>
<CAPTION>
Balance at Balance Annual
Beginning Additions Other Changes- at End of Depreciation
Classification of Period at Cost(a) Retirements Add (Deduct)(b) Period Rates
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
December 31, 1991
Depreciable property
Timberlands .................. $ 45.7 $ 3.0 $ - $ (.1) $ 48.6 Various
Land improvements ............ 116.2 18.8 .3 .4 135.1 2% - 10%
Buildings .................... 812.5 94.6 3.6 (.3) 903.2 2% - 10%
Machinery and equipment ...... 3,472.7 479.3 95.5 (1.8) 3,854.7 3.5% - 20%
Furniture and fixtures ....... 214.6 38.4 10.2 (.8) 242.0 5% - 20%
Autos, trucks and airplanes .. 123.8 9.7 5.5 - 128.0 5% - 25%
Other depreciable property ... 12.1 9.6 1.3 (5.9) 14.5 4% - 20%
-------- ------- ------ ------- --------
Total - depreciable
property ................... 4,797.6 653.4 116.4 (8.5) 5,326.1
-------- ------- ------ ------- --------
Nondepreciable property
Land ......................... 37.2 2.0 - 1.2 40.4
Plant being constructed ...... 353.2 (118.4)(c) - (9.5) 225.3
-------- ------- ------ ------- --------
Total - nondepreciable
property ................... 390.4 (116.4) - (8.3) 265.7
-------- ------- ------ ------- --------
Total ..................... $5,188.0 $ 537.0 $116.4 $ (16.8) $5,591.8
======== ======= ====== ======= ========
<FN>
(a) Amounts represent cash additions or capitalized interest on significant
construction projects. See Note 10 to financial statements.
(b) Includes reclassifications, transfers and currency effects of translating property,
plant and equipment at current rates under SFAS No. 52. See Notes 1 and 5 to
financial statements.
(c) Additions to plant being constructed are net of amounts reclassified to depreciable
property captions when construction projects are completed.
</TABLE>
<PAGE>
SCHEDULE VI Kimberly-Clark Corporation and Subsidiaries
ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(Millions of dollars)
<TABLE>
<CAPTION>
Additions
Balance at Charged to Balance at
Beginning Costs and Other Changes- End of
Description of Period Expenses Retirements Add (Deduct)(a) Period
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
December 31, 1993
Timberlands ......................... $ 12.4 $ .7 $ - $ (.1) $ 13.0
Land improvements ................... 49.1 6.0 .2 1.5 56.4
Buildings ........................... 256.5 25.2 2.6 (2.7) 276.4
Machinery and equipment ............. 1,682.5 220.3 116.2 (23.4) 1,763.2
Furniture and fixtures .............. 132.9 26.7 6.3 (.9) 152.4
Autos, trucks and airplanes ......... 58.9 14.2 8.9 (.4) 63.8
Other depreciable property .......... 7.0 2.8 1.7 (3.3) 4.8
-------- ------ ------ ------ --------
Total ............................. $2,199.3 $295.9 $135.9 $(29.3) $2,330.0
======== ====== ====== ====== ========
December 31, 1992
Timberlands ......................... $ 12.0 $ .4 $ - $ - $ 12.4
Land improvements ................... 44.0 5.5 .2 (.2) 49.1
Buildings ........................... 242.0 23.8 1.9 (7.4) 256.5
Machinery and equipment ............. 1,504.5 215.6 57.9 20.3 1,682.5
Furniture and fixtures .............. 118.8 24.6 7.7 (2.8) 132.9
Autos, trucks and airplanes ......... 54.0 13.7 8.4 (.4) 58.9
Other depreciable property .......... 6.3 5.4 .2 (4.5) 7.0
-------- ------ ------ ------ --------
Total ............................. $1,981.6 $289.0 $ 76.3 $ 5.0 $2,199.3
======== ====== ====== ====== ========
December 31, 1991
Timberlands ......................... $ 11.6 $ .4 $ - $ - $ 12.0
Land improvements ................... 38.8 5.4 .1 (.1) 44.0
Buildings ........................... 223.1 22.5 2.8 (.8) 242.0
Machinery and equipment ............. 1,371.4 196.6 60.4 (3.1) 1,504.5
Furniture and fixtures .............. 104.7 22.9 9.2 .4 118.8
Autos, trucks and airplanes ......... 45.4 13.1 4.5 - 54.0
Other depreciable property .......... 6.7 4.6 1.0 (4.0) 6.3
-------- ------ ------ ------ --------
Total ............................. $1,801.7 $265.5 $ 78.0 $ (7.6) $1,981.6
======== ====== ====== ====== ========
<FN>
(a) Includes reclassifications, transfers and currency effects of translating
accumulated depreciation of property, plant and equipment at current rates under
SFAS No. 52. 1992 includes reserves established as part of the restructuring
charge. See Notes 1, 5 and 9 to financial statements.
</TABLE>
<PAGE>
SCHEDULE VIII Kimberly-Clark Corporation and Subsidiaries
VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(Millions of dollars)
<TABLE>
<CAPTION>
Additions Deductions
---------------------- -------------
Balance at Charged to Charged to Write-Offs Balance at
Beginning Costs and Other and Discounts End of
Description of Period Expenses Accounts(a) Allowed Period
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
December 31, 1993
Allowances deducted from
assets to which they apply
Allowances for doubtful
accounts ......... $10.2 $ 5.4 $.2 $ 7.8(b) $ 8.0
Allowances for sales
discounts ........ 7.1 97.0 - 97.3(c) 6.8
----- ------ ---- ------ -----
Total .......... $17.3 $102.4 $.2 $105.1 $14.8
===== ====== ==== ====== =====
December 31, 1992
Allowances deducted from
assets to which they apply
Allowances for doubtful
accounts ......... $ 8.2 $ 4.5 $.2 $ 2.7(b) $10.2
Allowances for sales
discounts ........ 5.8 96.7 - 95.4(c) 7.1
----- ------ ---- ------ -----
Total .......... $14.0 $101.2 $.2 $ 98.1 $17.3
===== ====== ==== ====== =====
December 31, 1991
Allowances deducted from
assets to which they apply
Allowances for doubtful
accounts ......... $ 7.1 $ 4.8 $ - $ 3.7(b) $ 8.2
Allowances for sales
discounts ........ 5.4 90.3 - 89.9(c) 5.8
----- ------ ---- ------ -----
Total .......... $12.5 $ 95.1 $ - $ 93.6 $14.0
===== ====== ==== ====== =====
<FN>
(a) Primarily bad debt recoveries
(b) Primarily uncollectible receivables written off
(c) Sales discounts allowed
</TABLE>
<PAGE>
SCHEDULE IX Kimberly-Clark Corporation and Subsidiaries
SHORT-TERM BORROWINGS
FOR THE YEARS ENDED
DECEMBER 31, 1993, 1992 AND 1991
(Millions of dollars)
<TABLE>
<CAPTION>
Maximum
Amount Average Weighted
Outstanding Daily Average
Weighted at any Amount Interest
Balance Average Month-End Outstanding Rate
Category of Aggregate at End of Interest During the During the During the
Short-Term Borrowings Period Rate Period Period(a) Period(b)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
December 31, 1993
Holders of commercial paper .... $475.4 3.2% $475.4 $411.6 3.2%
Other short-term debt(c) ....... 79.7 10.8 96.8 91.6 12.3
------
$555.1
======
December 31, 1992
Holders of commercial paper .... $456.7 3.5% $456.7 $233.8 3.8%
Less commercial paper
refinanced(d) ................ (200.0) - - - -
Other short-term debt(c) ....... 75.8 13.4 96.0 81.5 13.1
------
$332.5
======
December 31, 1991
Holders of commercial paper .... $125.4 4.4% $225.8 $131.2 6.3%
Other short-term debt(c) ....... 97.7 12.8 121.1 91.8 12.2
------
$223.1
======
<FN>
(a) The average daily amount outstanding was computed by
dividing the total of each month's average daily
balance by 12.
(b) The weighted average interest rates were calculated by
dividing interest expense on short-term borrowings by
average daily short-term borrowings.
(c) Primarily notes payable to banks made under credit
facilities which are renewable periodically. Other
amounts payable are not significant.
(d) At December 31, 1992, $200 million of commercial paper
was classified as long-term debt. In February 1993,
the Corporation issued $200 million of 7 7/8%
Debentures due February 1, 2023 and used the proceeds
to reduce commercial paper borrowings.
</TABLE>
<PAGE>
INDEX TO DOCUMENTS FILED AS A PART OF THIS REPORT
Description
-----------
Consolidated financial statements, incorporated by reference
Independent Auditors' Report, incorporated by reference
Independent Auditors' Report
Schedules for Kimberly-Clark Corporation and Subsidiaries:
V Property, Plant and Equipment
VI Accumulated Depreciation of Property, Plant and Equipment
VIII Valuation and Qualifying Accounts
IX Short-Term Borrowings
Exhibit No.(3)a. Restated Certificate of Incorporation of
Kimberly-Clark Corporation, dated April 16, 1987, incorporated
by reference to Exhibit No. 4e. of the Kimberly-Clark
Corporation Form S-8 filed on February 16, 1993
(File No. 33-58402)
Exhibit No.(3)b. By-Laws of Kimberly-Clark Corporation, as
amended April 22, 1993, incorporated by reference to Exhibit
No.(3) of the Kimberly-Clark Corporation Form 10-Q for the
quarterly period ended June 30, 1993
Exhibit No.(4). Copies of instruments defining the rights of
holders of long-term debt will be furnished to the Securities
and Exchange Commission on request
Exhibit No.(10)a. Kimberly-Clark Corporation 1976 Equity
Participation Plan, as amended effective May 1, 1987,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992
Exhibit No.(10)b. Kimberly-Clark Corporation Management
Achievement Award Program, incorporated by reference to Exhibit
No.(10)b. of Kimberly-Clark Corporation Form 10-K for the year
ended December 31, 1990
Exhibit No.(10)c. Kimberly-Clark Corporation Executive
Severance Plan, incorporated by reference from the Kimberly-
Clark Corporation Form 10-K for the year ended December 31,
1992
<PAGE>
Index to Documents Filed as a Part of This Report
(Continued)
Description
-----------
Exhibit No.(10)d. Second Amended and Restated Deferred
Compensation Plan for Directors of Kimberly-Clark Corporation,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992
Exhibit No.(10)e. Kimberly-Clark Corporation 1986 Equity
Participation Plan, as amended effective May 1, 1987,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992
Exhibit No. (10)f. Kimberly-Clark Corporation 1992 Equity
Participation Plan, incorporated by reference to Exhibit
No. 4A. of the Kimberly-Clark Corporation Form S-8 filed on
June 26, 1992 (File No. 33-49050)
Exhibit No.(11). Statement re: computation of earnings per
share
Exhibit No.(12). Computation of ratio of earnings to
fixed charges
Exhibit No.(13). Portions of the Kimberly-Clark Corporation
1993 Annual Report to Stockholders incorporated by reference in
this Form 10-K
Exhibit No.(21). Consolidated Subsidiaries and Equity Companies
of Kimberly-Clark Corporation are identified in the 1993 Annual
Report to Stockholders, and such information is incorporated in
this Form 10-K by reference
Exhibit No.(23). Independent Auditors' Consent
Exhibit No.(24). Powers of Attorney
Exhibit No. (12)
KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Dollar amounts in millions)
<TABLE>
<CAPTION>
Year Ended December 31
-----------------------------------------------------
1993 1992 1991 1990 1989
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Consolidated Companies
- ----------------------
Income before income taxes .................... $713.0 $461.9 $684.3 $660.8 $630.8
Interest expense .............................. 112.6 99.4 102.1 88.1 68.2
Interest factor in rent expense ............... 23.1 26.4 22.6 20.8 11.0
Amortization of capitalized interest .......... 5.7 5.7 4.7 4.1 3.4
Equity Affiliates
- -----------------
Share of 50%-owned:
Income before income taxes .................. 34.6 39.3 28.2 21.3 19.8
Interest expense ............................ 7.6 3.1 5.1 8.6 8.8
Interest factor in rent expense ............. .6 .6 .7 .7 .5
Amortization of capitalized interest ........ .6 .3 .2 .2 .1
Distributed income of less than 50%-owned ..... 41.4 41.7 43.4 33.2 39.2
------ ------ ------ ------ ------
Earnings ........................................ $939.2 $678.4 $891.3 $837.8 $781.8
====== ====== ====== ====== ======
Consolidated Companies
- ----------------------
Interest expense .............................. $112.6 $ 99.4 $102.1 $ 88.1 $ 68.2
Capitalized interest .......................... 19.0 18.6 14.7 20.3 20.2
Interest factor in rent expense ............... 23.1 26.4 22.6 20.8 11.0
Equity Affiliates
- -----------------
Share of 50%-owned:
Interest expense and capitalized interest ... 8.1 8.1 7.1 9.0 9.3
Interest factor in rent expense ............. .6 .6 .7 .7 .5
------ ------ ------ ------ ------
Fixed charges ................................... $163.4 $153.1 $147.2 $138.9 $109.2
====== ====== ====== ====== ======
Ratio of earnings to fixed charges ........ 5.75 4.43(a) 6.06 6.03 7.16
====== ====== ====== ====== ======
<FN>
(a) The 1992 ratio of earnings to fixed charges excluding the pretax restructuring charge of
$250.0 million was 6.06.
</TABLE>
EXHIBIT NO. (13)
<TABLE>
<CAPTION>
Consolidated Income Statement
(Millions of dollars Year Ended December 31
except per share amounts) 1993 1992 1991
-------- -------- --------
<S> <C> <C> <C>
Net Sales ........................................... $6,972.9 $7,091.1 $6,776.9
Cost of products sold ............................. 4,581.4 4,534.5 4,332.4
-------- -------- --------
Gross Profit ........................................ 2,391.5 2,556.6 2,444.5
Advertising, promotion and selling expenses ....... 1,068.3 1,255.6 1,202.5
Research expense .................................. 158.5 156.1 148.8
General expense ................................... 371.2 351.8 351.4
Restructuring charge .............................. - 250.0 -
-------- -------- --------
Operating Profit .................................... 793.5 543.1 741.8
Interest expense .................................. (112.6) (99.4) (102.1)
Other income (expense), net ....................... 32.1 18.2 44.6
-------- -------- -------
Income Before Income Taxes .......................... 713.0 461.9 684.3
Provision for income taxes ........................ 284.4 186.3 236.1
-------- ------- -------
Income Before Equity Interests ...................... 428.6 275.6 448.2
Share of net income of equity companies ........... 98.0 82.9 72.8
Minority owners' share of subsidiaries'
net income ...................................... (15.7) (13.5) (12.7)
-------- -------- -------
Income Before Cumulative Effects of Accounting Changes 510.9 345.0 508.3
Cumulative effects of accounting changes:
Other postretirement benefits, net of
income taxes .................................. - (245.0) -
Income taxes .................................... - 35.0 -
-------- -------- -------
Net Income .......................................... $ 510.9 $ 135.0 $ 508.3
======== ======== =========
Per Share Basis
Income before cumulative effects of accounting
changes ......................................... $ 3.18 $ 2.15 $ 3.18
Cumulative effects of accounting changes:
Other postretirement benefits, net of
income taxes .................................. - (1.53) -
Income taxes .................................... - .22 -
-------- -------- -------
Net income ........................................ $ 3.18 $ .84 $ 3.18
======== ======== =========
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
Consolidated Balance Sheet
December 31
(Millions of dollars) Assets 1993 1992
- ------------------------------------------------------------------------------------
<S> <C> <C>
Current Assets
Cash and cash equivalents ................................... $ 34.8 $ 41.1
Accounts receivable ......................................... 738.7 775.1
Inventories ................................................. 775.9 719.7
Deferred income tax benefits ................................ 93.7 81.8
Prepaid expenses ............................................ 32.1 64.9
-------- --------
Total Current Assets ...................................... 1,675.2 1,682.6
-------- --------
Property
Land and timberlands ........................................ 121.0 93.6
Buildings ................................................... 1,004.5 935.5
Machinery and equipment ..................................... 5,034.6 4,609.1
Construction in progress .................................... 212.7 335.9
-------- --------
6,372.8 5,974.1
Less accumulated depreciation ............................... 2,330.0 2,199.3
-------- --------
Net Property .............................................. 4,042.8 3,774.8
Investments in Equity Companies ............................... 398.3 349.7
Deferred Charges and Other Assets ............................. 264.4 222.0
-------- --------
$6,380.7 $6,029.1
======== ========
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
December 31
Liabilities and Stockholders' Equity 1993 1992
- ------------------------------------------------------------------------------------
<S> <C> <C>
Current Liabilities
Debt payable within one year ............................... $ 684.8 $ 445.3
Trade accounts payable ..................................... 322.0 372.9
Other payables ............................................. 116.1 99.6
Accrued expenses ........................................... 594.6 674.8
Accrued income taxes ....................................... 121.8 95.2
Dividends payable .......................................... 69.2 135.0
-------- --------
Total Current Liabilities ................................ 1,908.5 1,822.8
-------- --------
Long-Term Debt ............................................... 933.1 994.6
-------- --------
Noncurrent Employee Benefit Obligations ...................... 430.0 409.3
-------- --------
Deferred Income Taxes ........................................ 585.0 554.6
-------- --------
Minority Owners' Interests in Subsidiaries ................... 66.9 56.7
-------- --------
Stockholders' Equity
Common stock-$1.25 par value-authorized 300.0 million
shares; issued 161.9 million ............................. 202.4 202.4
Additional paid-in capital ................................. 27.1 27.6
Common stock held in treasury, at cost - 1.0 million
and 1.1 million shares at December 31, 1993 and
1992, respectively ....................................... (32.9) (38.9)
Unrealized currency translation adjustments ................ (240.6) (197.9)
Retained earnings .......................................... 2,501.2 2,197.9
-------- --------
Total Stockholders' Equity ............................... 2,457.2 2,191.1
-------- --------
$6,380.7 $6,029.1
======== ========
</TABLE>
<TABLE>
<CAPTION>
Consolidated Cash Flow Statement
Year Ended December 31
(Millions of dollars) 1993 1992 1991
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations
Net income ......................................... $ 510.9 $ 135.0 $ 508.3
Depreciation ....................................... 295.9 289.0 265.5
Restructuring charge ............................... - 250.0 -
Cumulative effects of accounting changes ........... - 210.0 -
Deferred income tax provision (benefit) ............ 23.6 (3.4) 7.0
Equity companies' earnings in excess of
dividends paid ................................... (49.0) (35.6) (20.9)
Minority owners' share of subsidiaries'
net income ....................................... 15.7 13.5 12.7
Changes in operating working capital ............... (71.7) (92.7) (53.0)
Other .............................................. 21.3 (11.8) (14.7)
------- ------- -------
Cash Provided by Operations .................... 746.7 754.0 704.9
------- ------- -------
Investing
Capital spending ................................... (654.5) (690.5) (537.0)
Other .............................................. (11.1) (79.0) (8.1)
------- ------- -------
Cash Used for Investing ........................ (665.6) (769.5) (545.1)
------- ------- -------
Financing
Cash dividends paid ................................ (273.4) (262.8) (231.9)
Changes in debt payable within one year ............ 239.5 138.7 (103.3)
Increases in long-term debt ........................ 83.9 237.4 233.0
Decreases in long-term debt ........................ (145.4) (117.5) (86.8)
Other .............................................. 8.0 18.0 11.8
------- ------- -------
Cash (Used for) Provided by Financing .......... (87.4) 13.8 (177.2)
------- ------- -------
Decrease in Cash and Cash Equivalents ................ $ (6.3) $ (1.7) $ (17.4)
======= ======= =======
</TABLE>
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
NOTE 1. ACCOUNTING POLICIES
Kimberly-Clark Corporation's accounting policies conform to
generally accepted accounting principles. Significant policies
followed are described below.
Basis of Presentation
- ---------------------
The consolidated financial statements include the accounts of
Kimberly-Clark Corporation and all significant subsidiaries
which are more than 50 percent owned and controlled.
Investments in significant nonconsolidated companies which are
at least 20 percent owned are stated at cost plus equity in
undistributed net income. These latter companies are referred
to as equity companies.
Certain reclassifications have been made to conform prior
years' data to the current year presentation.
Start-Up and Preoperating Costs
- -------------------------------
Costs of bringing certain new or expanded facilities into
operation are recorded as deferred charges and amortized to
income over periods of not more than five years.
Advertising and Promotion Expenses
- ----------------------------------
Advertising expenses are charged to income during the year in
which they are incurred. Promotion expenses are charged to
income over the period of the promotional campaign.
Per Share Data
- --------------
Per share data are based on the average number of common shares
outstanding, which was 160.9 million, 160.4 million and
160.0 million for the years ended December 31, 1993, 1992 and
1991, respectively.
Inventories
- -----------
U.S. inventories valued at cost on the Last-In, First-Out
(LIFO) method for U.S. income tax purposes are valued in the
same manner for accounting purposes. The balance of the U.S.
inventories and inventories of consolidated operations outside
the U.S. are valued at the lower of cost, using the First-In,
First-Out (FIFO) method, or market.
Property and Depreciation
- -------------------------
Property, plant and equipment are stated at cost. Depreciable
property is depreciated on the straight-line or units-of-
production method for accounting purposes and generally on an
accelerated method for income tax purposes. When property is
sold or retired, the cost of the property and the related
accumulated depreciation are removed from the balance sheet and
any gain or loss on the transaction is included in income.
NOTE 2. INCOME TAXES
Effective January 1, 1992, the Corporation adopted Statement of
Financial Accounting Standards No. 109, "Accounting for Income
Taxes" (SFAS No. 109). SFAS No. 109 requires that deferred
income taxes be based on the expected future tax consequences
of temporary differences between the book and tax bases of
assets and liabilities. Previously, deferred income taxes were
determined based on the historical tax effects of timing
differences between book and taxable income. The $35.0 million
cumulative effect of this accounting change was credited to
1992 income as a separate item in the consolidated income
statement.
An analysis of the provision for income taxes follows:
<TABLE>
<CAPTION>
Year Ended December 31
(Millions of dollars) 1993 1992 1991
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Current income taxes:
United States ...................................... $181.9 $131.0 $155.6
State .............................................. 38.8 34.0 28.4
Other countries .................................... 40.1 24.7 45.1
------ ------ ------
260.8 189.7 229.1
------ ------ ------
Deferred income taxes:
United States ...................................... 34.2 12.9 (9.9)
State .............................................. .6 (1.8) 6.8
Other countries .................................... (11.2) (14.5) 10.1
------ ------ ------
23.6 (3.4) 7.0
------ ------ ------
Total ............................................ $284.4 $186.3 $236.1
====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Deferred income tax assets (liabilities) as of December 31,
1993 and 1992 are comprised of the following:
(Millions of dollars) 1993 1992
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Current deferred income tax assets (liabilities) attributable to:
Advertising and promotion accruals ........................... $ 13.9 $ 16.0
Pension, postretirement and other employee benefits .......... 43.7 51.5
Other accrued liabilities .................................... 31.2 36.9
Prepaid expenses ............................................. (3.5) (13.5)
Other ........................................................ 13.0 (1.4)
Valuation allowances ......................................... (4.6) (7.7)
-------- -------
Total current deferred income tax asset .................... $ 93.7 $ 81.8
======== =======
Noncurrent deferred income tax assets (liabilities) attributable to:
Accumulated depreciation ..................................... $(754.7) $(677.9)
Start-up and preoperating costs .............................. (29.7) (27.5)
Operating loss carryforwards ................................. 92.6 46.4
Other postretirement benefits ................................ 153.7 142.8
Other ........................................................ (20.9) (23.2)
Valuation allowances ......................................... (26.0) (15.2)
-------- -------
Total noncurrent deferred income tax liability ............. $(585.0) $(554.6)
======= =======
</TABLE>
The valuation allowances for deferred income tax assets
increased $7.7 million in 1993.
The components of the provision for deferred income taxes for
the year ended December 31, 1991 are as follows (in millions):
<TABLE>
<S> <C>
Depreciation ............................................................ $ 32.3
Disposition of a subsidiary ............................................. (11.5)
Other ................................................................... (13.8)
------
Provision for deferred income taxes ................................... $ 7.0
======
</TABLE>
A reconciliation of income tax computed at the U.S. federal
statutory tax rate to the provision for income taxes is as
follows:
<TABLE>
<CAPTION>
(Millions of dollars) 1993 1992 1991
- ---------------------------------------------------------------------------------------
Amount Percent Amount Percent Amount Percent
------ ------- ------ ------- ------ -------
<S> <C> <C> <C> <C> <C> <C>
Tax at U.S. statutory rate ............. $249.6 35.0% $157.0 34.0% $232.7 34.0%
State income taxes, net of federal
tax benefit .......................... 25.4 3.6 21.0 4.5 23.3 3.4
Operating losses for which no tax
benefit was recognized ............... 10.0 1.4 10.8 2.3 3.2 .5
U.S. federal income tax rate increase .. 8.8 1.2 - - - -
Disposition of a subsidiary ............ - - - - (10.3) (1.5)
Other - net ............................ (9.4) (1.3) (2.5) (.5) (12.8) (1.9)
------ ---- ------ ---- ------ ----
Provision for income taxes ........... $284.4 39.9% $186.3 40.3% $236.1 34.5%
====== ==== ====== ==== ====== ====
</TABLE>
The increase in the 1993 U.S. corporate income tax rate to
35 percent from 34 percent required that deferred income tax
assets and liabilities be remeasured at the new rate.
At December 31, 1993, income taxes have not been provided on
$911 million of permanently invested unremitted net income of
subsidiaries operating outside the U.S. These earnings could
become subject to additional tax if they were remitted as
dividends, were lent to the Corporation or a U.S. affiliate, or
if the Corporation were to sell its stock in the subsidiaries.
Any resulting U.S. or foreign tax liability would be largely
offset by U.S. foreign tax credits.
Income before income taxes included income of $31.2 million in
1993, a loss of $23.5 million in 1992 and income of
$110.6 million in 1991 from subsidiaries outside the U.S.
Net operating loss carryforwards of $270.7 million at
December 31, 1993 were applicable to certain subsidiaries
outside the U.S. If not utilized against taxable income,
$92.3 million of this amount will expire through the year 2000.
The remaining $178.4 million has no expiration date.
NOTE 3. POSTRETIREMENT AND OTHER BENEFITS
Pension Benefits
The Corporation and its subsidiaries in North America and the
United Kingdom have defined-benefit retirement plans (the
principal plans) covering substantially all of their full-time
employees. Retirement benefits are based on years of service
and generally on the average compensation earned in the highest
five of the last 15 years of service. The funding policy is to
contribute assets that, at a minimum, fully fund the
accumulated benefit obligation, subject to regulatory and tax
deductibility limits. Assets held in the pension trusts are
comprised principally of common stocks, high-grade corporate
and government bonds and various short-term investments.
Most other subsidiaries outside the U.S. have pension plans
covering substantially all full-time employees. Obligations
under such plans are provided for by contributing to trusts,
purchasing insurance policies, or recording liabilities.
The components of net pension cost were as follows:
Year Ended December 31
(Millions of dollars) 1993 1992 1991
- -----------------------------------------------------------------------
Benefits earned ........................... $ 56.2 $ 51.2 $ 44.4
Interest on projected benefit obligation .. 106.3 102.2 98.5
Amortizations and other ................... 3.2 4.2 1.3
----- ------ ------
165.7 157.6 144.2
Less expected return on plan assets
(Actual return was $152.5 million in
1993, $66.7 million in 1992, and
$165.0 million in 1991) ................. 115.3 106.1 106.3
------ ------ ------
Net pension cost .......................... $ 50.4 $ 51.5 $ 37.9
====== ====== ======
The assumed long-term rates of return on pension assets for
purposes of pension cost recognition for the principal plans
were as follows:
1993 1992 1991
----- ----- -----
United States plans ................. 10.0% 10.0% 11.0%
Canadian plans ...................... 10.5% 10.5% 11.5%
United Kingdom plan ................. 10.5% 11.0% 12.0%
Transition adjustments are being amortized to pension cost on
the straight-line method over 14 to 18 years.
The funded status of the principal plans is presented below:
December 31
(Millions of dollars) 1993 1992
- --------------------------------------------------------------------
Actuarial present value of plan benefits:
Accumulated benefit obligation:
Vested ............................. $1,181.2 $1,019.7
Nonvested .......................... 13.6 9.6
-------- --------
Total ............................ $1,194.8 $1,029.3
======== ========
Projected benefit obligation ......... $1,428.8 $1,224.5
Plan assets at fair value .............. 1,252.0 1,098.7
-------- --------
Plan assets less than projected
benefit obligation ................... $ (176.8) $ (125.8)
======== ========
Consisting of:
Unfavorable actuarial experience ... $ (211.2) $ (114.1)
Unamortized transition
adjustments ...................... (2.2) (1.9)
Unamortized prior service costs .... (14.1) (15.2)
Net prepaid pension asset .......... 50.7 5.4
-------- --------
Total ........................ $ (176.8) $ (125.8)
======== ========
The assumed discount rates used to determine the projected
benefit obligation and accumulated benefit obligation for the
principal plans were as follows:
December 31
1993 1992
----- -----
United States plans ........ 7.50% 8.50%
Canadian plans ............. 8.50% 9.25%
United Kingdom plan ........ 8.00% 9.50%
The assumed long-term rates of compensation increases used to
determine the projected benefit obligation for the principal
plans were as follows:
December 31
1993 1992
----- -----
United States plans ........ 3.75% 4.50%
Canadian plans ............. 4.25% 4.50%
United Kingdom plan ........ 4.75% 6.50%
Postretirement Health Care and Life Insurance Benefits
Substantially all retired employees of the Corporation and its
North American subsidiaries are covered by unfunded health care
and life insurance benefit plans. Benefits are based on years
of service and age at retirement. The plans are principally
noncontributory for current retirees, but most future retirees
will pay a portion of the costs. The U.S. plans place a limit
on the Corporation's cost of future annual per capita retiree
medical benefits at no more than 200 percent of the 1992 annual
per capita cost.
Effective January 1, 1992, the Corporation adopted Statement of
Financial Accounting Standards No. 106, "Employers' Accounting
for Postretirement Benefits Other Than Pensions" (SFAS No. 106)
using the immediate transition option. Under SFAS No. 106, the
costs of retiree health care and life insurance benefits are
accrued over relevant employee service periods. Previously,
these costs generally were charged to expense as claims were
paid. The estimated accumulated postretirement benefit
obligation (i.e., transition obligation) of $395.0 million,
less related deferred income tax benefits of $150.0 million,
was charged to 1992 income as a cumulative effect of the
accounting change. The net charge of $245.0 million is shown
as a separate item in the consolidated income statement.
The components of postretirement health care and life insurance
benefit costs were as follows:
<TABLE>
<CAPTION>
Year Ended
December 31
(Millions of dollars) 1993 1992
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Benefits earned ................................................ $ 6.3 $ 6.7
Interest on accumulated postretirement benefit
obligation ................................................... 28.3 32.4
Amortization ................................................... (1.9) -
------ ------
Net costs (of which $24.9 million and $24.1 million
were paid in 1993 and 1992, respectively) .................... $ 32.7 $ 39.1
====== ======
</TABLE>
Retiree health care and life insurance benefits paid and
charged to expense were $22.7 million in 1991.
The components of the postretirement health care and life
insurance benefit obligation are presented below:
<TABLE>
<CAPTION>
December 31
(Millions of dollars) 1993 1992
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Accumulated postretirement benefit obligation:
Retirees ................................................... $243.2 $255.1
Fully eligible active plan participants .................... 55.0 58.2
Other active plan participants ............................. 96.6 91.5
------ ------
Total .................................................... 394.8 404.8
Favorable actuarial experience ................................. 22.6 5.2
------ ------
Accrued postretirement benefit liability ....................... $417.4 $410.0
====== ======
</TABLE>
The current portion of the accrued postretirement benefit
liability was $27.7 million and $34.1 million as of
December 31, 1993 and 1992, respectively.
The December 31, 1993 accumulated postretirement benefit
obligation was determined using an assumed health care cost
trend rate of 16% in 1994, declining to zero in 2000 and
thereafter, which reflects the previously described limit on
the Corporation's cost of annual per capita retiree medical
benefits. The December 31, 1992 accumulated postretirement
benefit obligation was determined using an assumed health care
cost trend rate of 17% in 1993, declining to zero in 2000 and
thereafter. Assumed discount rates of 7.5% and 8.5% were used
to determine the accumulated postretirement benefit obligation
at December 31, 1993 and December 31, 1992, respectively.
A one-percentage point increase in the health care cost trend
rate would increase the accumulated postretirement benefit
obligation by $5.4 million at December 31, 1993 and expense by
$.5 million for the year then ended.
Other Benefits
Voluntary contributory investment plans are provided to
substantially all U.S. employees. Under the plans, the
Corporation matches a portion of employee contributions. Costs
under the plans were $18.0 million, $16.4 million and
$14.9 million in 1993, 1992 and 1991, respectively.
NOTE 4. DEBT
The major issues of long-term debt outstanding were:
<TABLE>
<CAPTION>
December 31
(Millions of dollars) 1993 1992
- -------------------------------------------------------------------------------
<S> <C> <C>
Kimberly-Clark Corporation
Commercial paper refinanced in 1993 ................... $ - $ 200.0
7 7/8% Notes due 2023 ................................. 199.7 -
8 5/8% Notes due 2001 ................................. 199.5 199.4
9 3/4% Notes due 1995 ................................. 100.3 100.6
9 1/8% Notes due 1997 ................................. 100.0 100.0
12% Notes due 1994 .................................... 100.0 100.0
9% Notes due 2000 ..................................... 99.8 99.7
9 1/2% Sinking Fund Debentures due 2018 ............... 73.7 82.7
11 1/2% Sinking Fund Debentures redeemed in 1993,
originally due 2013 ................................. - 48.5
8.75% Notes ........................................... - 25.0
5% to 9.67% Pollution Control and Industrial
Development Revenue Bonds maturing to 2023 .......... 58.2 32.7
Other ................................................. 3.1 3.2
------- -------
934.3 991.8
Subsidiaries
11% to 16.8% Debentures due 1995 and 1996 ............. 41.5 30.2
Bank loans in various currencies at fixed rates (8% to
15% at December 31, 1993) maturing to 2000 .......... 34.7 44.9
Bank loans at variable rates (4% to 5% at
December 31, 1993) maturing to 2001 ................. 21.4 8.5
Other ................................................. 30.9 32.0
-------- --------
1,062.8 1,107.4
Less current portion .................................... 129.7 112.8
-------- --------
Total ................................................. $ 933.1 $ 994.6
======== ========
</TABLE>
At December 31, 1992, $200 million of commercial paper was
classified as long-term debt. In February 1993, the
Corporation issued $200 million of 7 7/8% Debentures due
February 1, 2023. The proceeds were used to reduce commercial
paper borrowings.
Scheduled maturities of long-term debt are $159.6 million in
1995, $13.9 million in 1996, $109.2 million in 1997 and
$7.3 million in 1998.
At December 31, 1993, the Corporation had $500 million of
revolving credit facilities with a group of U.S. and European
banks. These facilities, which were unused at December 31,
1993, permit borrowing at competitive interest rates and are
available for general corporate purposes, including backup for
commercial paper borrowings. The Corporation pays commitment
fees on the unused portion but may cancel the facilities
without penalty at any time prior to their expiration. Of
these facilities, $250 million expires on September 30, 1994
and the remainder expires on December 31, 1996.
Debt payable within one year:
December 31
(Millions of dollars) 1993 1992
------ ------
Commercial paper ..................................... $475.4 $256.7
Current portion of long-term debt .................... 129.7 112.8
Other short-term debt ................................ 79.7 75.8
------ ------
Total .............................................. $684.8 $445.3
====== ======
At December 31, 1993 and 1992, the estimated fair value of the
Corporation's long-term debt was $1,165.0 million and
$1,183.1 million compared with a carrying value of
$1,062.8 million and $1,107.4 million, respectively. The fair
value of the Corporation's commercial paper and other short-
term debt approximated the carrying amount. These fair values
were based on quoted market prices for the same or similar debt
or on current rates offered to the Corporation for obligations
with the same maturities.
NOTE 5. FOREIGN CURRENCY TRANSLATION
The income statements of foreign operations other than those in
hyperinflationary economies are translated into U.S. dollars at
rates of exchange in effect each month. The balance sheets of
these operations are translated at period-end exchange rates,
and the differences from historical exchange rates are
reflected in stockholders' equity as unrealized currency
translation adjustments.
Summary of unrealized currency translation adjustments:
(Millions of dollars) 1993 1992
- --------------------------------------------------------------------------
Balance, January 1 .................................. $(197.9) $ (44.4)
------- -------
Adjustments for the year:
Australian Dollar ................................. (1.0) (7.8)
British Pound ..................................... (5.4) (57.7)
Canadian Dollar ................................... (16.5) (43.7)
French Franc ...................................... (9.2) (11.0)
Other ............................................. (10.6) (8.0)
Deferred income taxes ............................. - (25.3)
------- -------
(42.7) (153.5)
------- -------
Balance, December 31 ................................ $(240.6) $(197.9)
======= =======
The income statements and balance sheets of operations in
hyperinflationary economies, i.e., Mexico prior to January 1,
1993, Brazil and Venezuela, are translated into U.S. dollars
using both current and historical rates of exchange. For
balance sheet accounts translated at current exchange rates,
such as cash and accounts receivable, the differences from
historical exchange rates are reflected in income.
Effective December 31, 1992, the Mexican economy was determined
to no longer be hyperinflationary. As a result, the Mexican
peso is considered to be the functional currency of the
Corporation's operations in Mexico. In conjunction with this
change, $25.3 million of deferred income taxes was charged to
unrealized currency translation adjustments in 1992.
The net loss reflected in consolidated net income from the
translation of balance sheet accounts of operations in
hyperinflationary economies and from currency transactions was
$15.7 million in 1993, $9.2 million in 1992 and $6.4 million in
1991.
The Corporation and its subsidiaries periodically enter into
forward contracts which hedge foreign currency exposures
arising from transactions related to their businesses. At
December 31, 1993, the Corporation had outstanding forward
exchange contracts, maturing at various dates in 1994, to
purchase $157 million and to sell $219 million of various
foreign currencies.
Note 6. Equity Participation Plans
Equity Participation Plans adopted in 1976, 1986 and 1992
provide for awards of participation shares and stock options to
key employees of the Corporation and its subsidiaries.
Upon maturity, participation share awards are paid in cash
based on the increase in the book value of the Corporation's
common stock during the award period. Participants do not
receive dividends on the participation shares, but their
accounts are credited with dividend shares payable in cash at
the maturity of the award. Neither participation nor dividend
shares are shares of common stock.
<TABLE>
<CAPTION>
Data concerning participation and dividend shares follow:
1993 1992 1991
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Outstanding - Beginning of year .................. 2,986,154 3,143,791 3,753,242
Awarded .......................................... 1,351,100 - 301,200
Dividend shares credited - net ................... 432,788 303,317 368,327
Matured .......................................... (1,142,988) (396,554) (1,248,178)
Forfeited ........................................ (42,700) (64,400) (30,800)
---------- --------- ---------
Outstanding - End of year ........................ 3,584,354 2,986,154 3,143,791
========== ========= =========
</TABLE>
Stock options are granted at not less than market value, become
exercisable over three years and expire 10 years after the date
of the grant.
<TABLE>
<CAPTION>
Data concerning stock options follow:
1993 Number of Options
Price Range 1993 1992 1991
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Outstanding - Beginning of year .... $11.88-$46.25 2,451,973 3,190,498 3,163,086
Granted ............................ $58.63 1,351,100 - 301,200
Exercised* ......................... $11.88-$46.25 (208,658) (720,685) (260,626)
Cancelled or expired ............... $41.38-$58.63 (17,480) (17,840) (13,162)
--------- --------- ---------
Outstanding - End of year .......... $11.88-$58.63 3,576,935 2,451,973 3,190,498
========= ========= =========
Exercisable ........................ $11.88-$58.63 2,107,995 1,624,073 1,759,238
========= ========= =========
<FN>
* Price ranges for options exercised in 1992 were $11.88 to
$46.25 per share and in 1991 were $7.31 to $41.38 per share.
</TABLE>
At December 31, 1993, the number of additional shares of common
stock of the Corporation available for option and sale under
the 1992 Plan or for award as participation shares at such date
under the 1992 Plan was 7,322,300 shares. The 1976 and 1986
Plans have expired and no additional grants will be made under
these Plans. Amounts expensed for shares under the Plans were
$10.6 million, $5.1 million and $12.4 million in 1993, 1992 and
1991, respectively.
NOTE 7 COMMITMENTS
Operating Lease Commitments:
Future minimum rental payments under operating leases as of
December 31, 1993, were:
(Millions of dollars)
- -----------------------------------------------------------------------
Year Ending December 31:
1994 ....................................................... $ 47.8
1995 ....................................................... 34.2
1996 ....................................................... 23.1
1997 ....................................................... 16.8
1998 ....................................................... 15.2
Thereafter ................................................. 69.8
------
Total .................................................... $206.9
======
Consolidated rental expense under operating leases was
$100.3 million, $118.9 million and $106.8 million in 1993, 1992
and 1991, respectively.
Other Commitments:
The Corporation has entered into long-term contracts for the
purchase of certain raw materials. Minimum purchase
commitments, at current prices, are approximately $230 million
in 1994 and $190 million in each of the years 1995 and 1996.
In no year are these purchase commitments expected to exceed
usage requirements.
NOTE 8. STOCKHOLDERS' EQUITY
Changes in common stock issued, treasury stock, additional
paid-in capital and retained earnings are shown below:
<TABLE>
<CAPTION>
Additional
(Millions of dollars Common Stock Issued Treasury Stock Paid-In Retained
except share amounts) Shares Amount Shares Amount Capital Earnings
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31,
1990 ................ 161,906,544 $202.4 2,072,866 $(66.8) $28.3 $2,130.0
Exercise of stock
options ............. - - (260,626) 8.2 (2.3) -
Purchased for
treasury ............ - - 17,084 (.8) - -
Net income ............ - - - - - 508.3
Cash dividends
declared ............ - - - - - (243.2)
----------- ------ --------- ------- ----- --------
Balance at December 31,
1991 ................ 161,906,544 202.4 1,829,324 (59.4) 26.0 2,395.1
Exercise of stock
options ............. - - (720,685) 22.8 1.6 -
Purchased for
treasury ............ - - 39,359 (2.3) - -
Net income ............ - - - - - 135.0
Cash dividends
declared ............ - - - - - (332.2)
----------- ------ --------- ------- ----- --------
Balance at December 31,
1992 ................ 161,906,544 202.4 1,147,998 (38.9) 27.6 2,197.9
Exercise of stock
options ............. - - (208,658) 6.8 (.5) -
Purchased for
treasury ............ - - 16,526 (.8) - -
Net income ............ - - - - - 510.9
Cash dividends
declared ............ - - - - - (207.6)
----------- ------ --------- ------- ----- --------
Balance at December 31,
1993 ................ 161,906,544 $202.4 955,866 $(32.9) $27.1 $2,501.2
=========== ====== ========= ======= ===== ========
</TABLE>
On June 21, 1988, the board of directors declared a
distribution of one preferred share purchase right for each
outstanding share of the Corporation's common stock to
stockholders of record as of July 1, 1988. The rights are
intended to protect the stockholders against abusive takeover
tactics.
A right will entitle its holder to purchase one two-hundredth
of a share of Series A Junior Participating Preferred Stock at
an exercise price of $100, but will not become exercisable
until 10 days after a person or group acquires, or announces a
tender offer which would result in the ownership of, 20 percent
or more of the Corporation's outstanding common shares.
Under certain circumstances, a right will entitle its holder to
acquire either shares of the Corporation's stock or shares of
an acquiring company's common stock, in either event having a
market value of twice the exercise price of the right. At any
time after the acquisition by a person or group of 20 percent
or more, but fewer than 50 percent, of the Corporation's common
shares, the Corporation may exchange the rights, except for
rights held by the acquiring person or group, in whole or in
part, at a rate of one right for one share of the Corporation's
common stock or for one two-hundredth of a share of Series A
Junior Participating Preferred Stock.
The rights may, or after a vote of stockholders at a special
meeting shall, be redeemed at $.005 per right prior to the
acquisition by a person or group of 20 percent or more of the
common stock. Unless redeemed earlier, the rights expire on
June 21, 1998.
The Corporation has 20 million shares of authorized preferred
stock with no par value, none of which has been issued.
At December 31, 1993, unremitted net income of equity companies
included in consolidated retained earnings was $377.2 million.
NOTE 9. RESTRUCTURING CHARGE
In 1992, the Corporation announced a restructuring plan to
strengthen its competitive position in consumer and service
products operations in Europe and certain operations in North
America. The plan included eliminating approximately
800 positions, principally in Europe; restructuring
manufacturing facilities at Rouen, France, and Larkfield,
England; discontinuing diaper production at mills in Fullerton,
Calif., and Memphis, Tenn.; writing off the No. 2 newsprint
machine at the Coosa Pines, Ala., mill; and integrating certain
U.S. and Canadian consumer and service products operations.
The $250.0 million pretax cost of the restructuring was charged
to 1992 operating profit. The restructuring reduced 1992 net
income by $172.0 million, or $1.07 per share.
Events and decisions underlying the 1992 restructuring were as
follows:
- - In Europe, the Corporation's earnings had been
unsatisfactory due to weak economies, high marketing
expenses incurred in entering certain markets and defending
against intense competition, and an inability to achieve
sales goals primarily in the tissue business. In 1992,
management decided to significantly reduce costs to improve
its long-term cost structure, competitive position and
financial performance. The cost-cutting measures included
reducing the work force at mills where personnel costs were
too high in relation to competition and focusing on
production of fewer products at each mill to simplify the
manufacturing process. The principal mills affected were in
Rouen, France, and Larkfield, England.
- - In North America, partially in response to the easing of
border restrictions and tariffs, management decided to
integrate certain U.S. and Canadian operations to increase
manufacturing efficiencies and reduce overhead costs. Due
to changes in product design and improved rates of
operation, certain of the Corporation's older diaper
manufacturing equipment was no longer needed. As a
consequence, diaper production was discontinued at mills in
Fullerton, Calif., and Memphis, Tenn.
- - The No. 2 newsprint machine at the Coosa Pines, Ala., mill
was shut down indefinitely in the first quarter of 1992 in
response to weak newsprint markets, and severance costs were
incurred. During the balance of 1992, depreciation
continued to be recorded on the machine while management
assessed its options. In December, management concluded
that there was no profitable manner in which to use the
machine in the foreseeable future, and wrote off the
remaining book value of the machine.
- - Approximately $162 million of the $250 million restructuring
charge related to asset write-offs and $88 million related
to the accrual of liabilities for severance pay and other
cash obligations arising from the restructuring. During
1993, approximately $60 million was disbursed against
$88 million of accrued liabilities established in connection
with the 1992 restructuring. In 1993, as expected, the
Corporation began to realize lower ongoing operating costs
and improved operating cash flow from the restructured
operations.
NOTE 10. SUPPLEMENTAL DATA (Millions of dollars)
<TABLE>
<CAPTION>
Supplemental Income Statement Data
Year Ended December 31
1993 1992 1991
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
Maintenance and repairs expense ................. $362.4 $355.6 $343.3
Advertising expense ............................. 164.7 149.2 153.4
</TABLE>
<TABLE>
<CAPTION>
Supplemental Balance Sheet Data
December 31
Summary of Accounts Receivable and Inventories 1993 1992
- --------------------------------------------------------------------------------
<S> <C> <C>
Accounts Receivable:
From customers ........................................... $688.9 $720.2
Other .................................................... 64.6 72.2
Less allowances for doubtful accounts and
sales discounts ........................................ (14.8) (17.3)
------ ------
Total ................................................ $738.7 $775.1
====== ======
Inventories by Major Class:
At the lower of cost on the First-In, First-Out
(FIFO) method or market:
Raw materials ........................................ $155.1 $148.5
Work in process ...................................... 169.6 149.5
Finished goods ....................................... 439.9 423.3
Supplies and other ................................... 121.5 127.9
------ ------
886.1 849.2
Excess of FIFO cost over Last-In, First-Out
(LIFO) cost ............................................ (110.2) (129.5)
------ ------
Total ................................................ $775.9 $719.7
====== ======
</TABLE>
Total inventories include $387.8 million and $358.3 million of
inventories valued on the LIFO method at December 31, 1993 and
1992, respectively.
December 31
Summary of Accrued Expenses 1993 1992
- ---------------------------------------------------------------------------
Accrued advertising and promotion expense ............ $139.4 $155.4
Accrued salaries and wages ........................... 169.5 122.1
Other accrued expenses ............................... 285.7 397.3
------ ------
Total .............................................. $594.6 $674.8
====== ======
Supplemental Cash Flow Statement Data
Summary of Cash Flow Effects of Changes Year Ended December 31
in Operating Working Capital* 1993 1992 1991
- -----------------------------------------------------------------------------
Accounts receivable ....................... $ 36.4 $(84.0) $(68.0)
Inventories ............................... (60.7) (38.2) (18.0)
Prepaid expenses .......................... 32.8 (10.0) (9.1)
Trade accounts payable .................... (50.9) 91.0 .9
Other payables ............................ 16.5 (45.7) 31.1
Accrued expenses .......................... (74.9) 19.5 59.5
Accrued income taxes ...................... 26.6 (6.5) (36.8)
Currency rate changes ..................... 2.5 (18.8) (12.6)
------- ------- -------
Changes in operating working capital ...... $(71.7) $(92.7) $(53.0)
====== ====== ======
* Excludes the effects of the 1992 restructuring charge and the
dispositions of certain businesses in 1993 and 1991.
Year Ended December 31
Other Cash Flow Data 1993 1992 1991
- -----------------------------------------------------------------------------
Interest paid ............................. $126.1 $120.7 $116.1
Interest capitalized ...................... 19.0 18.6 14.7
Income taxes paid ......................... 231.4 208.6 275.7
Decrease in cash and cash equivalents
due to exchange rate changes ............ (3.1) (2.4) (1.5)
Reconciliation of Changes in Cash and
Cash Equivalents:
Balance, January 1 .................... $ 41.1 $ 42.8 $ 60.2
Decrease .............................. (6.3) (1.7) (17.4)
------ ------ ------
Balance, December 31 .................. $ 34.8 $ 41.1 $ 42.8
====== ====== ======
NOTE 11. UNAUDITED QUARTERLY DATA
<TABLE>
<CAPTION>
(Millions of
dollars except
per share 1993 1992
amounts) Fourth Third(a) Second First Fourth(b) Third Second First(c)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net sales ..... $1,764.0 $1,781.0 $1,725.9 $1,702.0 $1,809.3 $1,793.5 $1,748.6 $1,739.7
Gross profit 596.8 587.9 604.1 602.7 636.2 642.2 636.2 642.0
Operating
profit (loss) 216.3 189.6 191.6 196.0 (71.9) 207.5 200.9 206.6
Income (loss)
before
cumulative
effects of
accounting
changes ..... 141.6 111.2 133.3 124.8 (55.8) 134.8 133.9 132.1
Per Share . .88 .69 .83 .78 (.35) .84 .84 .82
Net income
(loss) .... 141.6 111.2 133.3 124.8 (55.8) 134.8 133.9 (77.9)
Per Share . .88 .69 .83 .78 (.35) .84 .84 (.49)
Per share basis:
Cash dividends:
Declared .. .43 .43 .43 - .84 .41 .41 .41
Paid ...... .43 .43 .43 .41 .41 .41 .41 .41
Market price:
High ...... 53.75 50.63 55.38 62.00 63.25 59.50 58.63 54.00
Low ....... 48.38 44.63 45.63 53.63 50.00 53.00 48.75 46.25
Close ..... 51.88 49.00 49.50 54.75 59.00 53.88 58.50 53.13
<FN>
(a) Results for the third quarter 1993 include additional income
tax expense of $13.5 million ($.08 per share) related to the
increase in the U.S. statutory income tax rate to 35 percent
from 34 percent as a result of legislation enacted in the
third quarter effective as of January 1, 1993.
(b) Results for the fourth quarter 1992 include a restructuring
charge of $250.0 million pretax and $172.0 million after-tax,
or $1.07 per share, as described in Note 9.
(c) In 1992, the Corporation changed its method of accounting for
postretirement health care and life insurance benefits and
for income taxes. See Notes 2 and 3.
</TABLE>
NOTE 12. PRODUCT CLASS AND GEOGRAPHIC DATA
For reporting purposes, the Corporation's products and services
are segmented into three classes. Class I includes tissue
products for household, commercial, institutional and
industrial uses; infant, child, feminine and incontinence care
products; industrial and commercial wipers; health care
products; and related products. Class II includes newsprint,
printing papers, premium business and correspondence papers,
tobacco industry papers and products, technical papers, and
related products. Class III includes aircraft services,
commercial air transportation and other products and services.
Information concerning consolidated operations by product class
and geographic area, as well as data for equity companies, is
presented in the tables below and on the following pages:
<TABLE>
<CAPTION>
Consolidated Operations by Product Class
Net Sales Operating Profit
-------------------------- ----------------------
(Millions of dollars) 1993 1992 1991 1993 1992(a) 1991
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class I ....................... $5,565.5 $5,781.5 $5,507.2 $624.6 $434.7 $581.3
Class II ...................... 1,071.7 1,061.4 1,035.7 171.2 121.1 171.4
Class III ..................... 383.0 298.9 280.4 26.2 6.4 16.0
-------- -------- -------- ------ ------ ------
Combined ...................... 7,020.2 7,141.8 6,823.3 822.0 562.2 768.7
Interclass sales .............. (47.3) (50.7) (46.4) - - -
Unallocated items-net ......... - - - (28.5) (19.1) (26.9)
-------- -------- -------- ------ ------ ------
Consolidated .................. $6,972.9 $7,091.1 $6,776.9 $793.5 $543.1 $741.8
======== ======== ======== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Assets Depreciation Capital Spending
(Millions of ------------------------ ------------------- --------------------
dollars) 1993 1992 1991 1993 1992 1991 1993 1992 1991
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class I ....... $4,920.5 $4,667.8 $4,440.0 $242.1 $233.7 $213.8 $548.5 $600.9 $455.1
Class II ...... 802.4 759.2 752.6 35.8 35.6 33.3 86.5 64.3 62.2
Class III ..... 196.3 232.5 173.2 9.9 10.6 9.1 9.8 9.0 10.0
-------- -------- -------- ------ ------ ------ ------ ------ ------
Combined ...... 5,919.2 5,659.5 5,365.8 287.8 279.9 256.2 644.8 674.2 527.3
Unallocated(b). 616.7 608.5 550.0 8.1 9.1 9.3 9.7 16.3 9.7
Interclass
assets ...... (155.2) (238.9) (211.0) - - - - - -
-------- -------- -------- ------ ------ ------ ------ ------ ------
Consolidated .. $6,380.7 $6,029.1 $5,704.8 $295.9 $289.0 $265.5 $654.5 $690.5 $537.0
======== ======== ======== ====== ====== ====== ====== ====== ======
<FN>
(a) Operating profit in 1992 for Class I, II, III and Unallocated
includes $216.2 million, $21.5 million, $8.2 million and
$4.1 million, respectively, of the restructuring charge
described in Note 9.
(b) Assets include investments in equity companies of
$398.3 million, $349.7 million and $339.6 million in 1993,
1992 and 1991, respectively.
</TABLE>
<TABLE>
<CAPTION>
Consolidated Operations by Geographic Area
Net Sales Operating Profit
----------------------------- ---------------------
(Millions of dollars) 1993 1992 1991 1993 1992(a) 1991
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
United States ............... $5,282.5 $5,297.2 $5,040.7 $780.0 $571.4 $654.5
Canada ...................... 568.7 587.3 624.1 (28.8) (17.1) (4.4)
Intergeographic items(b)...... (243.6) (236.1) (220.8) - - -
-------- -------- -------- ------ ------ ------
North America ............... 5,607.6 5,648.4 5,444.0 751.2 554.3 650.1
Europe ...................... 917.0 1,016.9 959.1 .9 (56.9) 65.8
Asia and Latin America ...... 501.0 443.5 389.5 69.9 64.8 52.8
-------- -------- -------- ------ ------ ------
Combined .................... 7,025.6 7,108.8 6,792.6 822.0 562.2 768.7
Intergeographic items ....... (52.7) (17.7) (15.7) - - -
Unallocated items-net ....... - - - (28.5) (19.1) (26.9)
-------- -------- -------- ------ ------ ------
Consolidated ................ $6,972.9 $7,091.1 $6,776.9 $793.5 $543.1 $741.8
======== ======== ======== ====== ====== ======
</TABLE>
Assets
(Millions of dollars) 1993 1992 1991
- --------------------------------------------------------------
United States ............... $3,720.8 $3,626.4 $3,368.3
Canada ...................... 487.8 499.4 547.0
Intergeographic items ....... (35.6) (34.7) (30.1)
-------- -------- --------
North America ............... 4,173.0 4,091.1 3,885.2
Europe ...................... 1,085.2 965.5 980.3
Asia and Latin America ...... 630.2 594.4 529.4
-------- -------- --------
Combined .................... 5,888.4 5,651.0 5,394.9
Intergeographic items ....... (124.4) (230.4) (240.1)
Unallocated items-net(c)..... 616.7 608.5 550.0
-------- -------- --------
Consolidated ................ $6,380.7 $6,029.1 $5,704.8
======== ======== ========
(a) Operating profit in 1992 for the U.S., Canada, Europe, Asia
and Unallocated includes $148.9 million, $13.9 million,
$81.8 million, $1.3 million and $4.1 million, respectively,
of the restructuring charge described in Note 9.
(b) Net sales include $162.3 million, $185.8 million and
$169.9 million by operations in Canada to the U.S. in 1993,
1992 and 1991, respectively.
(c) Assets include investments in equity companies of
$398.3 million, $349.7 million and $339.6 million in 1993,
1992 and 1991, respectively.
<TABLE>
<CAPTION>
Kimberly-Clark's Share
Income Before of Income Before
Equity Interests Equity Interests
----------------------- -----------------------
(Millions of dollars) 1993 1992(a) 1991 1993 1992(a) 1991
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
United States ................ $432.9 $310.8 $366.3 $432.9 $310.8 $366.3
Canada(b) .................... (17.9) (9.6) 15.6 (17.9) (9.6) 15.6
------ ------ ------ ------ ------ ------
North America ................ 415.0 301.2 381.9 415.0 301.2 381.9
Europe ....................... (19.6) (61.8) 33.0 (24.5) (66.5) 28.6
Asia and Latin America ....... 33.2 36.2 33.3 22.4 27.4 25.0
------ ------ ------ ------ ------ ------
Consolidated Companies ....... $428.6 $275.6 $448.2 $412.9 $262.1 $435.5
====== ====== ====== ====== ====== ======
<FN>
(a) Income in 1992 for the U.S., Canada, Europe and Asia includes
$98.9 million, $8.6 million, $63.7 million and $.8 million,
respectively, of the restructuring charge described in
Note 9.
(b) Income for 1991 includes a favorable adjustment of
$20.0 million related to the disposition of a subsidiary.
</TABLE>
Intercompany sales of products between classes or geographic
areas are made at market prices and are referred to as
interclass sales or intergeographic items.
Assets reported by product class or geographic area represent
assets which are directly used and an allocated portion of
jointly used assets. These assets include receivables from
other product classes or geographic areas, and are referred to
as interclass assets or intergeographic items. Expense and
asset amounts not associated with classes or geographic areas
are referred to as unallocated items - net.
<TABLE>
<CAPTION>
Equity Companies' Data by Geographic Area
Kimberly-
Clark's
Share
Net Gross Operating Net of Net
(Millions of dollars) Sales Profit Profit Income(a) Income
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
December 31, 1993
Latin America ............. $1,120.9 $464.0 $294.7 $196.2 $86.4
Asia, Middle East and
Australia ............... 385.9 127.4 38.2 24.7 11.6
-------- ------ ------ ------ -----
Total ................... $1,506.8 $591.4 $332.9 $220.9 $98.0
======== ====== ====== ====== =====
December 31, 1992
Latin America ............. $ 953.2 $374.1 $221.8 $150.9 $68.5
Asia, Middle East and
Australia ............... 377.6 142.2 50.7 31.3 14.4
-------- ------ ------ ------ -----
Total ................... $1,330.8 $516.3 $272.5 $182.2 $82.9
======== ====== ====== ====== =====
December 31, 1991
Latin America ............. $ 861.4 $342.6 $215.0 $144.0 $63.1
Asia and Australia ........ 350.2 117.7 40.9 19.5 9.7
-------- ------ ------ ------ -----
Total ................... $1,211.6 $460.3 $255.9 $163.5 $72.8
======== ====== ====== ====== =====
<FN>
(a) The 1993 net income in Australia includes a $7.8 million
credit from a decrease in the statutory income tax rate to
33 percent from 39 percent effective January 1, 1993. The
1992 net income in Mexico and Australia includes a
$4.5 million charge and $1.6 million credit, respectively,
from the cumulative effect of adopting SFAS No. 109,
"Accounting for Income Taxes." Kimberly-Clark's share of
these items is included in the cumulative effects of
accounting changes on the consolidated income statement.
</TABLE>
<TABLE>
<CAPTION>
Non- Non- Stock-
Current Current Current Current holders'
(Millions of dollars) Assets Assets Liabilities Liabilities Equity
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
December 31, 1993
Latin America ............. $551.3 $ 678.3 $245.2 $311.2 $673.2
Asia, Middle East and
Australia ............... 98.8 342.3 85.0 148.4 207.7
------ -------- ------ ------ ------
Total ................... $650.1 $1,020.6 $330.2 $459.6 $880.9
====== ======== ====== ====== ======
December 31, 1992
Latin America ............. $491.4 $ 556.0 $226.4 $233.3 $587.7
Asia, Middle East and
Australia ............... 94.8 325.5 76.4 162.6 181.3
------ -------- ------ ------ ------
Total ................... $586.2 $ 881.5 $302.8 $395.9 $769.0
====== ======== ====== ====== ======
December 31, 1991
Latin America ............. $361.2 $ 436.7 $176.8 $ 13.0 $608.1
Asia and Australia ........ 65.5 283.3 57.0 140.4 151.4
------ -------- ------ ------ ------
Total ................... $426.7 $ 720.0 $233.8 $153.4 $759.5
====== ======== ====== ====== ======
</TABLE>
Equity companies are principally engaged in Class I operations.
A listing of the Corporation's percentage ownership of the
common stock of each significant subsidiary and equity company
is contained elsewhere in this annual report. Kimberly-Clark
de Mexico, S.A. de C.V. is partially owned by the public and
its stock is publicly traded in Mexico. At December 31, 1993,
the Corporation's investment in this equity company is
$264.0 million, and the estimated fair value is $1.6 billion
based on quoted market prices for publicly traded shares.
Independent Auditors' Report
Kimberly-Clark Corporation, Its Directors and Stockholders:
We have audited the accompanying consolidated balance sheet of
Kimberly-Clark Corporation and Subsidiaries as of December 31,
1993 and 1992 and the related consolidated income and cash flow
statements for each of the three years in the
period ended December 31, 1993. These financial statements are
the responsibility of the Corporation's management. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management,
as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, such consolidated financial statements of
Kimberly-Clark Corporation and Subsidiaries present fairly, in
all material respects, the financial position of the companies
at December 31, 1993 and 1992, and the results of their
operations and their cash flows for each of the three years in
the period ended December 31, 1993, in conformity with
generally accepted accounting principles.
As discussed in Notes 2 and 3 to the consolidated financial
statements, in 1992 the Corporation changed its methods of
accounting for Income Taxes and Postretirement Health Care and
Life Insurance Benefits to conform with Statements of Financial
Accounting Standards No. 109 and 106, respectively.
Deloitte & Touche
Dallas, Texas January 28, 1994
MANAGEMENT'S DISCUSSION AND ANALYSIS
Management believes that the following commentary and tables
appropriately discuss and analyze the comparative results of
operations and the financial condition of the Corporation for
the periods covered.
1992 Restructuring and Accounting Changes
The comparability of income statement data is affected by the
following items that occurred in 1992:
- - The Corporation announced a restructuring plan to
strengthen its competitive position in consumer and
service products operations in Europe and certain
operations in North America. The plan included
eliminating approximately 800 positions, principally in
Europe; restructuring manufacturing facilities at
Rouen, France, and Larkfield, England; discontinuing
diaper production at mills in Fullerton, Calif., and
Memphis, Tenn.; writing off the No. 2 newsprint machine
at the Coosa Pines, Ala., mill; and integrating certain
U.S. and Canadian consumer and service products
operations. Additional information concerning events
and decisions which gave rise to the restructuring plan
is presented in Note 9 to the Financial Statements.
The $250.0 million pretax cost of the restructuring was
charged to 1992 operating profit. The restructuring charge
decreased 1992 product class and geographic operating
profit as follows:
<TABLE>
<CAPTION>
($ Millions)
North Outside
Restructuring Charge America North America Total
--------------------------------------------------------------------
<S> <C> <C> <C>
Class I ............... $(133.1) $(83.1) $(216.2)
Class II .............. (21.5) - (21.5)
Class III ............. (8.2) - (8.2)
------- ------ -------
$(162.8) $(83.1) (245.9)
======= ======
Unallocated ........... (4.1)
-------
Total ................. $(250.0)
=======
</TABLE>
The restructuring reduced 1992 net income by $172.0
million, or $1.07 per share.
For the purposes of this Management's Discussion and
Analysis, the 1992 restructuring charge has been segregated
in the product class and geographic presentations to
facilitate a meaningful discussion of ongoing operations.
For a summary of the product class and geographic data
including the restructuring charge, see Note 12 to the
Financial Statements.
- - New required accounting rules were adopted for
postretirement health care and life insurance benefits
and for income taxes. These rules resulted in a one-
time "catch-up" charge of $210.0 million, or $1.31 per
share, against 1992 net income. These changes had no
effect on cash flow. See Notes 2 and 3 to the
Financial Statements.
<TABLE>
<CAPTION>
Analysis of Consolidated Operating Results
By Product Class
($ Millions)
% Change % of 1993
Net Sales 1993 1992 vs. 1992 Consolidated
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I ........................ $5,565.5 $5,781.5 - 3.7% 79.8%
Class II ....................... 1,071.7 1,061.4 + 1.0 15.4
Class III ...................... 383.0 298.9 +28.1 5.5
Adjustments .................... (47.3) (50.7) (.7)
-------- -------- -----
Consolidated ................... $6,972.9 $7,091.1 - 1.7% 100.0%
======== ======== =====
</TABLE>
<TABLE>
<CAPTION>
% Change % Return on Sales
Operating Profit 1993 1992 vs. 1992 1993 1992
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class I ........................ $ 624.6 $ 650.9 - 4.0% 11.2% 11.3%
Class II ....................... 171.2 142.6 +20.1 16.0 13.4
Class III ...................... 26.2 14.6 +79.5 6.8 4.9
Restructuring Charge ........... - (250.0)
Adjustments .................... (28.5) (15.0)
-------- --------
Consolidated ................... $ 793.5 $ 543.1 +46.1% 11.4% 7.7%
======== ========
</TABLE>
Product Classes referred to in this Management's Discussion and
Analysis are:
- Class I includes tissue products for household,
commercial, institutional and industrial uses; infant,
child, feminine and incontinence care products;
industrial and commercial wipers; health care products;
and related products.
- Class II includes newsprint, printing papers, premium
business and correspondence papers, tobacco industry
papers and products, technical papers, and related
products.
- Class III includes aircraft services, commercial air
transportation and other products and services.
Commentary:
Sales volumes increased 2.6 percent compared with 1992, but net
sales declined because of lower selling prices and changes in
currency exchange rates.
- The Corporation reduced selling prices for its Huggies
disposable diapers in the U.S. in October 1992 and
again in June 1993 to match diaper price reductions
announced by a major competitor. These price
reductions were partially offset by U.S. price and
count changes in January 1993 and Canadian price
increases in February 1993.
- Although sales volumes for Huggies disposable diapers
were flat in North America, this product continues to
be the number one selling brand in the U.S.
- Selling prices were lower for feminine care products
and facial tissue in the U.S., as well as tobacco
industry papers and products, principally in response
to competitive business conditions.
- Sales volumes for Huggies Pull-Ups training pants
increased due to the launch of the product in Canada,
the United Kingdom, parts of Continental Europe, Korea
and various other countries and territories. During
1993, private-label and economy-branded competitors
continued to expand distribution of their disposable
training pants nationally in competition with the
Corporation's training pants business, and, in the
fourth quarter, a major competitor initiated regional
introductions of a branded training pant.
- Sales volumes increased for Depend and Poise
incontinence care products and Huggies baby wipes in
North America, consumer products in Asia and Latin
America, Neenah Paper's premium business and
correspondence papers, and Midwest Express Airlines,
Inc. Sales volumes were lower for household tissue
products in North America.
- Although selling prices for newsprint improved, pricing
remains at depressed levels due to overcapacity and
weak demand in the industry.
- Currency translation, primarily in Europe and Canada,
is estimated to have reduced consolidated sales by $147
million.
Gross profit declined in absolute terms, 6.5 percent, and as a
percentage of sales.
- Selling prices were lower as previously discussed.
- Product improvement costs were higher, primarily for
the new Huggies UltraTrim diapers.
- Increased start-up costs were attributable to a new
European facility to support the introduction of
Huggies Pull-Ups training pants and the upcoming launch
of disposable diapers in the United Kingdom and parts
of Continental Europe, and to a new feminine care
products facility in the U.S.
- Industry overcapacity and weak prices in markets for
consumer and industrial bathroom tissue contributed to
continuing poor results for these businesses in North
America and Continental Europe.
- Raw material costs were lower.
Excluding the 1992 restructuring charge, consolidated operating
profit was $793.1 million in 1992 compared with $793.5 million
in 1993. On this basis, operating profit was virtually
unchanged but improved slightly as a percentage of sales.
- In connection with the lower selling prices, promotion
expenses in North America were reduced for disposable
diapers, feminine care products and facial tissue,
which more than offset the decline in gross profit.
- Higher product introduction costs for expansion of
Huggies Pull-Ups training pants, as well as continued
heavy investment to support the upcoming launch of
diapers in Europe, reduced operating profit outside
North America.
- General expense in 1993 included a $6.5 million charge
related to the settlement of a class action lawsuit
brought by a group of property and business owners near
the Coosa Pines, Ala., pulp and newsprint mill.
- General expense in 1992 was reduced by the recovery of
legal fees related to the settlement of diaper
litigation.
- Currency translation is estimated to have reduced
consolidated operating profit by $6 million.
<PAGE>
By Geography
<TABLE>
<CAPTION>
($ Millions)
% Change % of 1993
Net Sales 1993 1992 vs. 1992 Consolidated
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
North America ............... $5,607.6 $5,648.4 - .7% 80.4%
Outside North America ....... 1,418.0 1,460.4 - 2.9 20.3
Adjustments ................. (52.7) (17.7) (.7)
-------- -------- -----
Consolidated ................ $6,972.9 $7,091.1 - 1.7% 100.0%
======== ======== =====
</TABLE>
<TABLE>
<CAPTION>
% Change % Return on Sales
Operating Profit 1993 1992 vs. 1992 1993 1992
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
North America ............... $ 751.2 $ 717.1 + 4.8% 13.4% 12.7%
Outside North America ....... 70.8 91.0 - 22.2 5.0 6.2
Restructuring Charge ........ - (250.0)
Adjustments ................. (28.5) (15.0)
-------- --------
Consolidated ................ $ 793.5 $ 543.1 + 46.1% 11.4% 7.7%
======== ========
</TABLE>
<TABLE>
<CAPTION>
% Change
Net Income 1993 1992 vs. 1992
- ---------------------------------------------------------------
<S> <C> <C> <C>
North America ............... $ 415.0 $ 408.7 + 1.5%
Outside North America ....... 95.9 108.3 - 11.4
Restructuring Charge ........ - (172.0)
Cumulative Effects of
Accounting Changes ......... - (210.0)
-------- --------
Net Income .................. $ 510.9 $ 135.0 +278.4%
======== ========
</TABLE>
Additional Commentary:
- Excluding the previously mentioned 1992 restructuring
charge and the cumulative effects of accounting
changes, 1993 consolidated net income declined 1.2
percent.
- Interest expense was higher in 1993 because of higher
debt levels primarily related to capital spending
programs and working capital needs.
- Other income in 1993 included a $9.4 million pretax
gain from the sale of forestland in Alabama.
- Net income was adversely affected by the enactment of
the 1993 Tax Act, which increased the U.S. federal
income tax rate to 35 percent from 34 percent. This
tax change reduced net income by $15.5 million or $.10
per share. Five cents related to 1993 and five cents
related to deferred taxes for prior years. The
effective income tax rate declined to 39.9 percent in
1993 from 40.3 percent in 1992. Significant factors
affecting the comparison were lower operating losses in
certain non-U.S. operations for which no income tax
benefits were recognized in 1993, a lower 1993
effective state income tax rate and lower effective tax
rates associated with certain other non-U.S. operations
in 1993, partially offset by the U.S. tax rate
increase.
- The Corporation's share of net income from equity
companies grew 18.2 percent, primarily from results of
operations in Mexico and Colombia, on the strength of
higher sales volumes and improved selling prices.
Earnings from Australia declined due to higher start-up
costs and interest expense in 1993, tempered by a lower
income tax rate. An insurance settlement in Australia
also benefited 1992 results.
- The sale of the assets of the Corporation's Karolton
Envelope business was completed in December 1993.
Neither the sale transaction, nor the operating results
of Karolton, were material to the consolidated
financial statements.
Adjustments:
- Adjustments to sales shown in the preceding tables
consist of intercompany sales of products between
product classes or geographic areas. Adjustments to
operating profit consist of expenses not associated
with product classes or geographic areas.
LIQUIDITY AND CAPITAL RESOURCES
<TABLE>
Year Ended
December 31
($ Millions) 1993 1992
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Cash provided by operations ........................................... $746.7 $754.0
Capital spending ...................................................... 654.5 690.5
Ratio of total debt to capital
(target range: 28 to 32 percent) .................................... 39.1% 39.0%
Pretax interest coverage - times ...................................... 6.6 5.2
</TABLE>
Commentary:
- The Corporation's working capital decreased $93.1
million from December 31, 1992 to December 31, 1993.
Major factors affecting the decline were:
-- a reduction in accounts receivable of $36.4 million
related, in part, to lower net sales,
-- an increase in inventories of $56.2 million
principally to support the introduction of Huggies
diapers and training pants in Europe and Huggies
Supreme diapers in the U.S.,
-- a decrease in dividends payable of $65.8 million
due to the timing of dividend declarations,
-- an increase in debt payable within one year of
$239.5 million primarily related to capital
spending programs and working capital needs, and
-- lower accrued liabilities related to the 1992
restructuring, as discussed in Note 9 to the
Financial Statements.
- In 1993, four cash dividends were paid aggregating
$273.4 million, or $1.70 per share. In 1992, four cash
dividends were paid aggregating $262.8 million, or
$1.64 per share.
- The ratio of total debt to capital remains outside the
Corporation's target range, in part as a consequence of
the 1992 restructuring charge and the cumulative
effects of the changes in accounting principles.
Capital is the sum of total debt, minority owners'
interests in subsidiaries and stockholders' equity.
- A shelf registration for $100 million of debt
securities is on file with the Securities and Exchange
Commission. The filing allows flexibility to issue
debt promptly if the Corporation's needs and market
conditions warrant.
- In February 1993, the Corporation issued $200 million
of 7 7/8% Debentures due February 1, 2023. The
proceeds were used to reduce commercial paper
borrowings. See Note 4 to the Financial Statements.
- Revolving credit facilities of $500 million are in
place for general corporate purposes and to back up
commercial paper borrowings.
- The Corporation's long-term debt securities have a
Double-A rating, and its commercial paper is rated in
the top category.
- Management believes that the Corporation's ability to
generate cash from operations and its capacity to issue
short-term and long-term debt are adequate to fund
working capital, capital spending and other needs in
the foreseeable future.
<PAGE>
TRENDS IN THE LAST THREE YEARS
<TABLE>
<CAPTION>
Net Sales
($ Billions) 1993 1992 1991
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Principal products:
Diapers ......................................................... $ 1.5 $ 1.6 $ 1.6
Household and other tissue-based products ....................... 1.9 1.9 1.9
Feminine care products .......................................... .7 .7 .7
All other ....................................................... 2.9 2.9 2.6
----- ----- -----
Consolidated ...................................................... $ 7.0 $ 7.1 $ 6.8
===== ===== =====
</TABLE>
- Consolidated net sales grew $.6 billion since 1990.
The increase was due to volume, partially offset by
lower selling prices and changes in currency
exchange rates in 1993.
<TABLE>
<CAPTION>
Analysis of Operating Profit as a Percentage of Net Sales
1993 1992 1991
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net sales ......................................................... 100.0% 100.0% 100.0%
Less:
Cost of products sold ............................................ 65.7 63.9 63.9
Marketing expense ................................................ 15.3 17.7 17.7
Research expense ................................................. 2.3 2.2 2.2
General expense .................................................. 5.3 5.0 5.3
Restructuring charge ............................................. - 3.5 -
----- ----- -----
Operating profit .................................................. 11.4% 7.7% 10.9%
===== ===== =====
</TABLE>
Excluding the 1992 restructuring charge, operating profit
margins have increased during the last two years as a
result of higher sales volumes, improved manufacturing
efficiencies, cost control measures, lower raw material
costs, and lower marketing expenses which more than offset
lower selling prices in 1993. Other factors affecting
operating profit margins for the last three years were:
- higher product improvement and start-up costs,
particularly in 1993,
- higher than historical marketing expenses in 1992
and 1991,
- lower net price realizations for newsprint in 1992
and continuing in 1993,
- poor results for consumer and industrial bathroom
tissue businesses in North America and Continental
Europe in the past two years, and
- litigation settlements in 1993 and 1992.
<PAGE>
<TABLE>
<CAPTION>
Changes in Net Sales and Earnings versus the Preceding Year
1993 1992
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Net sales ............................................................ - 1.7% + 4.6%
Gross profit ......................................................... - 6.5 + 4.6
Operating profit ..................................................... + 46.1 -26.8
Income before cumulative effects of accounting changes ............... + 48.1 -32.1
Net income ........................................................... +278.4 -73.4
Per share basis:
Income before cumulative effects of accounting changes .............. + 47.9 -32.4
Net income .......................................................... +278.6 -73.6
</TABLE>
- The decline in net sales in 1993 was a result of lower
selling prices and currency translation as previously
discussed. The increase in 1992 primarily was a result
of higher sales volumes.
- Gross profit declined in 1993, principally because of
the lower selling prices. It grew in 1992, primarily
as a result of higher sales volumes.
- Excluding the effect of the 1992 restructuring charge,
operating profit grew .1 percent in 1993 and
6.9 percent in 1992. Factors affecting 1993 operating
profit have been discussed previously. The 1992
improvement was primarily attributable to the higher
sales volumes and improved operating efficiencies at
certain manufacturing facilities, partially offset by
higher marketing expenses.
- Excluding the 1992 restructuring charge, income before
cumulative effects of accounting changes declined 1.2
percent in 1993 and grew 1.7 percent in 1992. On a per
share basis, it declined 1.2 percent in 1993 and grew
1.3 percent in 1992.
- The effective income tax rate declined to 39.9 percent
in 1993 after increasing to 40.3 percent in 1992 from
34.5 percent in 1991. The higher effective income tax
rates in the last two years were primarily caused by
operating losses in certain non-U.S. operations for
which no income tax benefits were recognized, the 1993
U.S. tax rate increase and 1991 tax effects from the
disposition of a subsidiary, as discussed below.
- Spruce Falls Power and Paper Company, a former 50.5-
percent-owned Canadian newsprint subsidiary, was
disposed of in the fourth quarter of 1991. The
transaction benefited 1991 net income by $20.0 million,
or $.13 per share.
- Share of net income of equity companies increased in
the last three years, especially at Kimberly-Clark de
Mexico, S.A. de C.V., which benefited primarily from
higher sales volumes and from higher selling prices in
1993.
ENVIRONMENTAL MATTERS
During 1993, legislation was introduced in the United States
Congress and certain states requiring the inclusion of
secondary fiber in newsprint and certain other paper products.
No such legislation was enacted that had or is expected to have
a material adverse effect on the Corporation's business. It is
believed that similar legislation will be introduced in 1994 in
the United States Congress and certain states. The Corporation
is unable to determine the effect, if any, which such
legislation, if enacted, would have on its business or on its
consolidated financial condition or results of operations.
The Corporation is subject to federal, state and local
environmental protection laws and regulations with respect to
its business operations and is operating in compliance with, or
taking action aimed at ensuring compliance with, such laws and
regulations. Compliance with these laws and regulations is not
expected to materially affect the Corporation's business or
competitive position. Management does not believe that the
Corporation has been identified as a potentially responsible
party at an Environmental Protection Agency-designated cleanup
site which could have a material adverse impact on the
Corporation's business or results of operations. Additional
information concerning environmental matters is disclosed in
the Corporation's annual report to the Securities and Exchange
Commission on Form 10-K for the year ended December 31, 1993
under the "Business" and "Legal Proceedings" sections.
OUTLOOK - 1994
Management expects more intense competition in its disposable
training pants business in 1994 due, in part, to an anticipated
wider distribution of a training pants product by a major
competitor in the U.S. At this time, management is unable to
determine the effect of this competition on its future results
of operations. Management also expects to continue to invest
heavily to support the Corporation's introduction of training
pants in Europe and its 1994 launch of diapers there.
Beginning in 1993, management took steps to exit businesses
that do not meet its strategic objectives of building on the
Corporation's core technologies, well-known trademarks and
strong product franchises. The assets of the Corporation's
Karolton Envelope business were sold in 1993, and the sale of
the Corporation's adhesive-coated label stock business is
pending. Management expects to continue to review all of its
businesses to determine their ability to meet strategic
objectives. Those businesses that are unable to meet these
objectives may become candidates for divestiture.
CONSOLIDATED SUBSIDIARIES
The following list includes companies which were more than 50
percent owned directly or indirectly by Kimberly-Clark
Corporation, a Delaware corporation, Dallas, Texas, as of
December 31, 1993. Each company was owned 100 percent by
Kimberly-Clark Corporation unless otherwise indicated.
This list includes all significant subsidiaries. The place of
incorporation is the same as the location of the company except
as shown parenthetically. The fiscal year for all companies
ends December 31.
Astral Aviation, Inc. (Delaware) Milwaukee, Wisconsin (100% by
Midwest Express Airlines, Inc.)
Avent, Inc. and subsidiary (Delaware) Tucson, Arizona
Avent, S.A. de C.V. (Mexico City) Nogales, Mexico
Jet Professionals, Inc. (Delaware) Fairfield, Connecticut (100%
by K-C Aviation Inc.)
K-C Advertising, Inc. (Delaware) Neenah, Wisconsin
K-C Aviation Inc. (Delaware) Dallas, Texas
K-C do Brasil Ltda. and subsidiary, Sao Paulo, Brazil
Kimberly-Clark Argentina S.A., Cordoba, Argentina
Kimberly-Clark Benelux Operations B.V. and subsidiary,
Veenendaal, Netherlands
Kimberly-Clark Canada European Finance B.V., Netherlands (100%
by Kimberly-Clark Canada Inc.)
Kimberly-Clark Canada Global Finance N.V., Netherlands Antilles
(100% by Kimberly-Clark Canada Inc.)
Kimberly-Clark Canada Inc., Mississauga, Ontario, Canada
Kimberly-Clark de Centro America, S.A. and subsidiaries, Sitio
del Nino, El Salvador (39.6% plus 35.4% by Kimberly-Clark
International, S.A.)
Kimberly-Clark Costa Rica, Cartago, Costa Rica
Kimberly-Clark Far East Pte. Limited, Singapore (60% by
Kimberly-Clark International, S.A.)
Kimberly-Clark Forest Products Inc., Terrace Bay, Ontario,
Canada (100% by Kimberly-Clark Canada Inc.)
Kimberly-Clark France S.A.R.L., Paris, France
Kimberly-Clark GmbH and subsidiaries, Koblenz, Germany
Kimberly-Clark Inc., Mississauga, Ontario, Canada (100% by
Kimberly-Clark Canada Inc.)
Kimberly-Clark Industries S.A., Paris, France (100%* by
Kimberly-Clark France S.A.R.L.)
Kimberly-Clark Integrated Services Corporation (Delaware)
Roswell, Georgia
Kimberly-Clark International, S.A., Panama City, Panama
Kimberly-Clark International Services Corporation (Delaware)
Neenah, Wisconsin
Kimberly-Clark Limited, Larkfield, Kent, England
Kimberly-Clark PHC International, Inc. (Delaware)
Kimberly-Clark Philippines Inc., Makati, Philippines (87%*)
Kimberly-Clark Puerto Rico, Inc. (Delaware) San Juan, Puerto
Rico
Kimberly-Clark Sales Corporation (Virgin Islands) Veenendaal,
Netherlands
Kimberly-Clark Sopalin S.A., St. Cloud, France (100%* by
Kimberly-Clark France S.A.R.L.)
Kimberly-Clark Technical Products, Inc. (Delaware) Roswell,
Georgia
Kimberly-Clark Thailand Limited, Bangkok, Thailand
LTR Industries S.A., Paris, France (72%*)
Midwest Express Airlines, Inc. (Delaware) Milwaukee, Wisconsin
(100% by K-C Aviation Inc.)
Papeteries de Malaucene S.A., Malaucene, France (100%* by
Papeteries de Mauduit S.A.)
Papeteries de Mauduit S.A., Quimperle, France (100%* by
Kimberly-Clark France S.A.R.L.)
Ridgeway Insurance Company Limited*, Hamilton, Bermuda
Spenco Medical Corporation and subsidiary, Waco, Texas
SYZYGY, Inc. (Delaware) Waco, Texas
Venekim, C.A., Caracas, Venezuela (20% by Kimberly-Clark
International, S.A., 10% by Colombiana Kimberly S.A. and 70% by
Colombiana Universal de Papeles S.A.)
YuHan-Kimberly, Limited, Seoul, Korea (60%)
EQUITY COMPANIES
The following list includes companies which were 20 percent to
50 percent owned directly or indirectly by Kimberly-Clark
Corporation, a Delaware corporation, Dallas, Texas, as of
December 31, 1993. Kimberly-Clark's percentage ownership of
each company is indicated parenthetically.
This list includes all significant equity companies. The place
of incorporation is the same as the location of the company.
The fiscal year for all companies ends December 31.
Colombiana Kimberly S.A., Medellin, Colombia (Approximately
50%*)
Colombiana Universal de Papeles S.A., Pereira, Colombia
(Approximately 50%*)
Kimberly-Clark Australia Pty. Limited and subsidiaries, Milsons
Point, New South Wales, Australia (50%)
Kimberly-Clark Malaysia, Sendirian Berhad, Petaling Jaya,
Malaysia (30.6%)
Kimberly-Clark de Mexico, S.A. de C.V. and subsidiaries, Mexico
City, Mexico (43%)
Olayan Kimberly-Clark Arabia Company, Al-Khobar, Kingdom of
Saudi Arabia (49%)
Olayan Kimberly-Clark (Bahrain) WLL, Manama, Bahrain (49%)
P.T. Kimsari Paper Indonesia, Medan, Indonesia (50%)
* Less qualifying shares held by directors, trustees or agents
of the Corporation
DIVIDENDS AND DIVIDEND REINVESTMENT PLAN
Quarterly dividends have been paid continually since 1935.
Dividends are paid on or about the second day of January,
April, July and October. The Automatic Dividend Reinvestment
service of The First National Bank of Boston is available to
Kimberly-Clark stockholders of record. The service makes it
possible for Kimberly-Clark stockholders of record to have
their dividends automatically reinvested in common stock and to
make additional cash investments up to $3,000 per quarter.
STOCK EXCHANGES
Kimberly-Clark common stock is listed on the New York, Chicago
and Pacific stock exchanges. The ticker symbol is KMB.
TRADEMARKS
The brand names mentioned in this report -- Kleenex(R),
Huggies(R), Pull-Ups(R), Kotex(R), Lightdays(R), New
Freedom(R), Maximums(TM), Depend(R), EasyGrip(TM), Poise(R),
Hi-Dri(R), Delsey(R), Kimguard(R), Kleenex Softique(R),
Kleenex(R) Ultra(TM), Kleenex UltraSoft(TM), Kleenex
Boutique(R), Velvet(TM), Spenco(R), Silicore(R), Kimguard One-
Step(TM), Ultra(TM), Kimwipes(R), Classic(R) and Classic
Crest(R), Regard(R), Surpass(R), WorkHorse(R), Evolution(R),
Flexus(TM), Demique(R), Kimbies(R), KleenBebe(R), Brevia(R),
Midwest Express(R) and "The Best Care in the Air"(R) -- are
trademarks of Kimberly-Clark Corporation or its subsidiaries.
Exhibit No. (23)
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Kimberly-Clark
Corporation's Registration Statements on Form S-8 (Nos. 2-
71743, 33-5299, 33-30425, 33-49050 and 33-58402) and on Form S-
3 (No. 33-52343) of our reports dated January 28,
1994, which reports include an explanatory paragraph concerning
the Corporation's changes in its methods of accounting for
income taxes and postretirement benefits other than pensions to
conform with Statements of Financial Accounting Standards No.
109 and No. 106, respectively; appearing in and incorporated by
reference in this Annual Report on Form 10-K for the year ended
December 31, 1993. We also consent to the references to us
under the heading "Experts" in the Prospectuses, which are part
of such Registration Statements.
/s/ Deloitte & Touche
- ---------------------
DELOITTE & TOUCHE
Dallas, Texas
March 24, 1994
Exhibit No. 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 17th day of February, 1994.
/s/ John F. Bergstrom
-------------------------------
John F. Bergstrom
STATE OF TEXAS )
) ss
COUNTY OF DALLAS )
I, Clairene Jorella, a Notary Public in and for said
County, in the State aforesaid, DO HEREBY CERTIFY that John F.
Bergstrom is personally known to me to be the same person whose
name is subscribed to the foregoing instrument, appeared before
me this day in person, and acknowledged that he signed, sealed
and delivered the said instrument as his free and voluntary
act, for the uses and purposes therein set forth.
GIVEN under my hand and notarial seal this 17th day of
February, 1994.
/s/ Clairene Jorella
------------------------------
Clairene Jorella
Notary Public
My commission expires: July 30, 1997
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 17th day of February, 1994.
/s/ James D. Bernd
------------------------------
James D. Bernd
STATE OF TEXAS )
) ss
COUNTY OF DALLAS )
I, Clairene Jorella, a Notary Public in and for said
County, in the State aforesaid, DO HEREBY CERTIFY that James D.
Bernd is personally known to me to be the same person whose
name is subscribed to the foregoing instrument, appeared before
me this day in person, and acknowledged that he signed, sealed
and delivered the said instrument as his free and voluntary
act, for the uses and purposes therein set forth.
GIVEN under my hand and notarial seal this 17th day of
February, 1994.
/s/ Clairene Jorella
------------------------------
Clairene Jorella
Notary Public
My commission expires: July 30, 1997
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 17th day of February, 1994.
/s/ Pastora San Juan Cafferty
------------------------------
Pastora San Juan Cafferty
STATE OF TEXAS )
) ss
COUNTY OF DALLAS )
I, Clairene Jorella, a Notary Public in and for said
County, in the State aforesaid, DO HEREBY CERTIFY that Pastora
San Juan Cafferty is personally known to me to be the same
person whose name is subscribed to the foregoing instrument,
appeared before me this day in person, and acknowledged that
she signed, sealed and delivered the said instrument as her
free and voluntary act, for the uses and purposes therein set
forth.
GIVEN under my hand and notarial seal this 17th day of
February, 1994.
/s/ Clairene Jorella
------------------------------
Clairene Jorella
Notary Public
My commission expires: July 30, 1997
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 17th day of February, 1994.
/s/ Paul J. Collins
------------------------------
Paul J. Collins
STATE OF TEXAS )
) ss
COUNTY OF DALLAS )
I, Clairene Jorella, a Notary Public in and for said
County, in the State aforesaid, DO HEREBY CERTIFY that Paul J.
Collins is personally known to me to be the same person whose
name is subscribed to the foregoing instrument, appeared before
me this day in person, and acknowledged that he signed, sealed
and delivered the said instrument as his free and voluntary
act, for the uses and purposes therein set forth.
GIVEN under my hand and notarial seal this 17th day of
February, 1994.
/s/ Clairene Jorella
------------------------------
Clairene Jorella
Notary Public
My commission expires: July 30, 1997
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 17th day of February, 1994.
/s/ Claudio X. Gonzalez
------------------------------
Claudio X. Gonzalez
STATE OF TEXAS )
) ss
COUNTY OF DALLAS )
I, Clairene Jorella, a Notary Public in and for said
County, in the State aforesaid, DO HEREBY CERTIFY that Claudio
X. Gonzalez is personally known to me to be the same person
whose name is subscribed to the foregoing instrument, appeared
before me this day in person, and acknowledged that he signed,
sealed and delivered the said instrument as his free and
voluntary act, for the uses and purposes therein set forth.
GIVEN under my hand and notarial seal this 17th day of
February, 1994.
/s/ Clairene Jorella
------------------------------
Clairene Jorella
Notary Public
My commission expires: July 30, 1997
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 17th day of February, 1994.
/s/ James G. Grosklaus
------------------------------
James G. Grosklaus
STATE OF TEXAS )
) ss
COUNTY OF DALLAS )
I, Clairene Jorella, a Notary Public in and for said
County, in the State aforesaid, DO HEREBY CERTIFY that James G.
Grosklaus is personally known to me to be the same person whose
name is subscribed to the foregoing instrument, appeared before
me this day in person, and acknowledged that he signed, sealed
and delivered the said instrument as his free and voluntary
act, for the uses and purposes therein set forth.
GIVEN under my hand and notarial seal this 17th day of
February, 1994.
/s/ Clairene Jorella
------------------------------
Clairene Jorella
Notary Public
My commission expires: July 30, 1997
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 17th day of February, 1994.
/s/ Phala A. Helm, M.D.
------------------------------
Phala A. Helm, M.D.
STATE OF TEXAS )
) ss
COUNTY OF DALLAS )
I, Clairene Jorella, a Notary Public in and for said
County, in the State aforesaid, DO HEREBY CERTIFY that Phala A.
Helm, M.D. is personally known to me to be the same person
whose name is subscribed to the foregoing instrument, appeared
before me this day in person, and acknowledged that she signed,
sealed and delivered the said instrument as her free and
voluntary act, for the uses and purposes therein set forth.
GIVEN under my hand and notarial seal this 17th day of
February, 1994.
/s/ Clairene Jorella
------------------------------
Clairene Jorella
Notary Public
My commission expires: July 30, 1997
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 17th day of February, 1994.
/s/ William E. LaMothe
------------------------------
William E. LaMothe
STATE OF TEXAS )
) ss
COUNTY OF DALLAS )
I, Clairene Jorella, a Notary Public in and for said
County, in the State aforesaid, DO HEREBY CERTIFY that William
E. LaMothe is personally known to me to be the same person
whose name is subscribed to the foregoing instrument, appeared
before me this day in person, and acknowledged that he signed,
sealed and delivered the said instrument as his free and
voluntary act, for the uses and purposes therein set forth.
GIVEN under my hand and notarial seal this 17th day of
February, 1994.
/s/ Clairene Jorella
------------------------------
Clairene Jorella
Notary Public
My commission expires: July 30, 1997
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 17th day of February, 1994.
/s/ Louis E. Levy
------------------------------
Louis E. Levy
STATE OF TEXAS )
) ss
COUNTY OF DALLAS )
I, Clairene Jorella, a Notary Public in and for said
County, in the State aforesaid, DO HEREBY CERTIFY that Louis E.
Levy is personally known to me to be the same person whose name
is subscribed to the foregoing instrument, appeared before me
this day in person, and acknowledged that he signed, sealed and
delivered the said instrument as his free and voluntary act,
for the uses and purposes therein set forth.
GIVEN under my hand and notarial seal this 17th day of
February, 1994.
/s/ Clairene Jorella
------------------------------
Clairene Jorella
Notary Public
My commission expires: July 30, 1997
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 25th day of February, 1994.
/s/ Frank A. McPherson
------------------------------
Frank A. McPherson
STATE OF OKLAHOMA )
) ss
COUNTY OF OKLAHOMA )
I, Jennine L. Mashburn, a Notary Public in and for
said County, in the State aforesaid, DO HEREBY CERTIFY that
Frank A. McPherson is personally known to me to be the same
person whose name is subscribed to the foregoing instrument,
appeared before me this day in person, and acknowledged that he
signed, sealed and delivered the said instrument as his free
and voluntary act, for the uses and purposes therein set forth.
GIVEN under my hand and notarial seal this 25th day of
February, 1994.
/s/ Jennine L. Mashburn
------------------------------
Jennine L. Mashburn
Notary Public
My commission expires: May 15, 1994
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
does hereby constitute and appoint John W. Donehower, Randy J.
Vest and O. George Everbach, and each of them, with full power
to act alone, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and
in his name, place and stead, in any and all capacities, to
sign Kimberly-Clark Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 1993 and to file the
same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as
amended, granting unto said attorneys-in-fact and agents, and
each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any one of them, or his
substitute or their substitutes, lawfully do or cause to be
done by virtue hereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 17th day of February, 1994.
/s/ H. Blair White
------------------------------
H. Blair White
STATE OF TEXAS )
) ss
COUNTY OF DALLAS )
I, Clairene Jorella, a Notary Public in and for said
County, in the State aforesaid, DO HEREBY CERTIFY that H. Blair
White is personally known to me to be the same person whose
name is subscribed to the foregoing instrument, appeared before
me this day in person, and acknowledged that he signed, sealed
and delivered the said instrument as his free and voluntary
act, for the uses and purposes therein set forth.
GIVEN under my hand and notarial seal this 17th day of
February, 1994.
/s/ Clairene Jorella
------------------------------
Clairene Jorella
Notary Public
My commission expires: July 30, 1997
