0000055785-23-000012 | 10-K | XBRL Viewer

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Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	34
Auditor Location	Dallas, Texas
Auditor Name	Deloitte & Touche LLP

Cover Page Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page Cover Page - USD ($) $ in Billions	Dec. 31, 2022	Jan. 31, 2023	Jun. 30, 2022
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Entity File Number	1-225
Entity Registrant Name	KIMBERLY-CLARK CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	39-0394230
Entity Address, Address Line One	P.O. Box 619100
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75261-9100
City Area Code	972
Local Phone Number	281-1200
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 45.6
Entity Common Stock, Shares Outstanding		337,507,349
Documents Incorporated by Reference	Certain information contained in the definitive Proxy Statement for Kimberly-Clark's Annual Meeting of Stockholders to be held on April 20, 2023 is incorporated by reference into Part III.
Auditor Name	Deloitte & Touche LLP
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0000055785
ICFR Auditor Attestation Flag	true
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock-$1.25 par value
Trading Symbol	KMB
Security Exchange Name	NYSE
0.625% Notes Due 2024
Document Information [Line Items]
Title of 12(b) Security	0.625% Notes due 2024
Trading Symbol	KMB24
Security Exchange Name	NYSE

Consolidated Income Statement - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Income Statement [Abstract]

Net Sales

^[1]

$ 20,175

$ 19,440

$ 19,140

Cost of products sold

13,956

13,452

12,318

Gross Profit

6,219

5,988

6,822

Marketing, research and general expenses

3,581

3,399

3,632

Other (income) and expense, net

^[2]

(43)

(54)

Operating Profit

2,681

2,561

3,244

Nonoperating expense

(73)

(86)

(70)

Interest income

Interest expense

(282)

(256)

(252)

Income Before Income Taxes and Equity Interests

2,340

2,225

2,930

Provision for income taxes

(495)

(479)

(676)

Income Before Equity Interests

1,845

1,746

2,254

Share of net income of equity companies

116

142

Net income

1,961

1,844

2,396

Net income attributable to noncontrolling interests

(27)

(30)

(44)

Net Income Attributable to Kimberly-Clark Corporation

$ 1,934

$ 1,814

$ 2,352

Earnings Per Share [Abstract]

Basic

$ 5.73

$ 5.38

$ 6.90

Diluted

$ 5.72

$ 5.35

$ 6.87

[1]	Net sales in the U.S. to third parties totaled $9,848, $9,285 and $9,679 in 2022, 2021 and 2020, respectively. No other individual country's net sales exceeds 10 percent of total net sales.
[2]	or 2020, it includes business tax credits of $77 related to a favorable legal ruling that resolved certain matters related to prior years' business taxes in Brazil.

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 1,961	$ 1,844	$ 2,396
Other Comprehensive Income (Loss), Net of Tax
Unrealized currency translation adjustments	(355)	(288)	129
Employee postretirement benefits	103	122	37
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax	(185)	84	(34)
Total Other Comprehensive Income (Loss), Net of Tax	(437)	(82)	132
Comprehensive Income	1,524	1,762	2,528
Comprehensive income attributable to noncontrolling interests	(19)	(15)	(55)
Comprehensive Income Attributable to Kimberly-Clark Corporation	$ 1,505	$ 1,747	$ 2,473

Consolidated Balance Sheet - USD ($)
$ in Millions

Dec. 31, 2022

Dec. 31, 2021

Current Assets

Cash and cash equivalents

$ 427

$ 270

Accounts receivable, net

2,280

2,207

Inventories

2,269

2,239

Other current assets

753

849

Total Current Assets

5,729

5,565

Property, Plant and Equipment, Net

7,885

8,097

Investments in Equity Companies

238

290

Goodwill

^[1]

2,074

1,840

Intangible Assets, Net (Excluding Goodwill)

851

810

Other Assets

1,193

1,235

TOTAL ASSETS

17,970

17,837

Current Liabilities

Debt payable within one year

844

433

Trade accounts payable

3,813

3,840

Accrued expenses and other current liabilities

2,289

2,096

Dividends payable

388

380

Total Current Liabilities

7,334

6,749

Long-Term Debt

7,578

8,141

Noncurrent Employee Benefits

654

809

Deferred Income Tax Liabilities, Net

647

694

Other Liabilities

799

681

Redeemable Common and Preferred Securities of Subsidiaries

$ 258

$ 26

Preferred stock, shares issued

Preferred stock, shares authorized

20,000,000.0

Preferred stock, par value per share

$ 0

Common stock, shares authorized

1,200,000,000

Common stock, shares issued

378,600,000

Common stock, par value per share

$ 1.25

Stockholders' Equity

Preferred stock - no par value - authorized 20.0 million shares, none issued

$ 0

Common stock - $1.25 par value - authorized 1.2 billion shares; issued 378.6 million shares at December 31, 2022 and 2021

473

Additional paid-in capital

$ 679

$ 605

Common stock held in treasury, shares

41,100,000

41,800,000

Common stock held in treasury, at cost - 41.1 and 41.8 million shares at December 31, 2022 and 2021, respectively

$ (5,137)

$ (5,183)

Retained earnings

8,201

7,858

Accumulated other comprehensive income (loss)

(3,669)

(3,239)

Total Kimberly-Clark Corporation Stockholders' Equity

547

514

Noncontrolling Interests

153

223

Total Stockholders' Equity

700

737

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 17,970

$ 17,837

[1]

Stockholders' Equity

The changes in the components of AOCI attributable to Kimberly-Clark, net of tax, are as follows:


	Unrealized Translation		Defined Benefit Pension Plans			Other Postretirement Benefit Plans			Cash Flow Hedges and Other
Balance as of December 31, 2020	$	(2,157)	$	(912)		$	(40)		$	(63)
Other comprehensive income (loss) before reclassifications	(265)		37			9			53
(Income) loss reclassified from AOCI	—		72		(a)	(3)		(a)	30
Net current period other comprehensive income (loss)	(265)		109			6			83

Balance as of December 31, 2021	(2,422)		(803)			(34)			20
Other comprehensive income (loss) before reclassifications	(347)		(51)			86			(139)
(Income) loss reclassified from AOCI	—		65		(a)	—		(a)	(44)
Net current period other comprehensive income (loss)	(347)		14			86			(183)
Balance as of December 31, 2022	$	(2,769)	$	(789)		$	52		$	(163)

(a) Included in computation of net periodic pension and other postretirement benefits costs (see Note 8).

Included in the above defined benefit pension plans and other postretirement benefit plans balances as of December 31, 2022 is $735 and $2 of unrecognized net actuarial loss and unrecognized net prior service credit, respectively.

The changes in the components of AOCI attributable to Kimberly-Clark, including the tax effect, are as follows:


	Year Ended December 31
	2022		2021		2020
Unrealized translation	$	(324)	$	(248)	$	98
Tax effect	(23)		(17)		16
	(347)		(265)		114

Defined benefit pension plans
Unrecognized net actuarial loss and transition amount
Funded status recognition	(109)		16		24
Amortization	34		37		41
Settlements and curtailments	52		91		49
Currency and other	36		10		(26)
	13		154		88
Unrecognized prior service cost/credit
Funded status recognition	2		(2)		2
Amortization	—		(4)		(4)
Curtailments	—		(3)		—
Currency and other	—		—		1
	2		(9)		(1)
Tax effect	(1)		(36)		(20)
	14		109		67
Other postretirement benefit plans
Unrecognized net actuarial loss and transition amount and other	113		12		(35)
Tax effect	(27)		(6)		8
	86		6		(27)
Cash flow hedges and other
Recognition of effective portion of hedges	(165)		70		(32)
Amortization	(58)		39		(2)
Currency and other	(22)		(4)		(5)
Tax effect	62		(22)		7
	(183)		83		(32)


Change in AOCI	$	(430)	$	(67)	$	122

Amounts are reclassified from AOCI into Cost of products sold, Nonoperating expense, Interest expense, or Other (income) and expense, net, as applicable, in the consolidated income statement.

Net unrealized currency gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries, except those in highly inflationary economies, are recorded in AOCI. For these operations, changes in exchange rates generally do not affect cash flows; therefore, unrealized translation adjustments are recorded in AOCI rather than net income. Upon sale or substantially complete liquidation of any of these subsidiaries, the applicable unrealized translation adjustment would be removed from AOCI and reported as part of the gain or loss on the sale or liquidation. The change in unrealized translation in 2022 is primarily due to the weakening of various foreign currencies versus the U.S. dollar, particularly the Indonesian rupiah and the British pound. Also included in unrealized translation amounts are the effects of foreign exchange rate changes on intercompany balances of a long-term investment nature and transactions designated as hedges of net foreign investments.

Consolidated Balance Sheet (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value per share	$ 0	$ 0
Preferred stock, shares authorized	20,000,000.0	20,000,000.0
Preferred stock, shares issued	0	0
Common stock, par value per share	$ 1.25	$ 1.25
Common stock, shares authorized	1,200,000,000	1,200,000,000
Common stock, shares issued	378,600,000	378,600,000
Common stock held in treasury, shares	41,100,000	41,800,000

Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Millions	Total	Common Stock Issued	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Non- controlling Interests
Stockholders' Equity, Attributable to Noncontrolling Interest							$ 227
Increase (Decrease) in Stockholders' Equity
Shares, Issued		378,597
Common Stock, Value, Issued at Dec. 31, 2019		$ 473
Additional Paid in Capital at Dec. 31, 2019			$ 556
Treasury Stock, Value at Dec. 31, 2019				$ (4,454)
Retained Earnings at Dec. 31, 2019					$ 6,686
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance at Dec. 31, 2019						$ (3,294)
Beginning Balance at Dec. 31, 2019	$ 194
Beginning Balance, treasury stock (in shares) at Dec. 31, 2019				37,149
Increase (Decrease) in Stockholders' Equity
Net income in stockholders' equity, excludes redeemable interests' share	2,396				2,352
Net Income (Loss) Attributable to Noncontrolling Interest	44						41
Other comprehensive income, net of tax, attributable to parent	2,473					121
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Excludes Redeemable Interests' Share	2,393
Other comprehensive income, net of tax, attributable to noncontrolling interest	(55)						12
Other Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Non Contolling Interest, Excludes Redeemable Interests' Share	133
Stock-based awards exercised or vested	216		(55)	$ 271
Stock-based awards exercised or vested (in shares)				(2,339)
Shares repurchased (in shares)				5,063
Shares repurchased				$ (716)
Recognition of stock-based compensation	$ 142		142
Dividends declared					(1,458)
Dividends declared per share	$ 4.28
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders							(36)
Dividends, Common Stock, Cash and Decrease from Distributions to Noncontrolling Interest Holders	$ 1,494
Other	1		(14)		13	(1)	1
Ending Balance at Dec. 31, 2020	869
Common Stock, Value, Issued at Dec. 31, 2020		$ 473
Additional Paid in Capital at Dec. 31, 2020			657
Treasury Stock, Value at Dec. 31, 2020				$ (4,899)
Treasury stock (in shares) at Dec. 31, 2020				39,873
Retained Earnings at Dec. 31, 2020					7,567
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance at Dec. 31, 2020						(3,172)
Stockholders' Equity, Attributable to Noncontrolling Interest							243
Increase (Decrease) in Stockholders' Equity
Common stock, shares, Issued		378,597
Net income in stockholders' equity, excludes redeemable interests' share	1,844				1,814
Net Income (Loss) Attributable to Noncontrolling Interest	30						29
Other comprehensive income, net of tax, attributable to parent	1,747					(67)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Excludes Redeemable Interests' Share	1,843
Other comprehensive income, net of tax, attributable to noncontrolling interest	(15)						(14)
Other Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Non Contolling Interest, Excludes Redeemable Interests' Share	(81)
Stock-based awards exercised or vested	66		(80)	$ 146
Stock-based awards exercised or vested (in shares)				(1,339)
Shares repurchased (in shares)				3,228
Shares repurchased				$ (430)
Recognition of stock-based compensation	$ 26		26
Dividends declared					(1,538)
Dividends declared per share	$ 4.56
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders							(36)
Dividends, Common Stock, Cash and Decrease from Distributions to Noncontrolling Interest Holders	$ (1,574)
Other	18		(2)		(15)		(1)
Ending Balance at Dec. 31, 2021	737
Common Stock, Value, Issued at Dec. 31, 2021	473	$ 473
Additional Paid in Capital at Dec. 31, 2021	605		605
Treasury Stock, Value at Dec. 31, 2021	$ (5,183)			$ (5,183)
Treasury stock (in shares) at Dec. 31, 2021	41,800			41,762
Retained Earnings at Dec. 31, 2021	$ 7,858				7,858
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance at Dec. 31, 2021	$ (3,239)					(3,239)
Stockholders' Equity, Attributable to Noncontrolling Interest							223
Increase (Decrease) in Stockholders' Equity
Common stock, shares, Issued	378,600	378,597
Net income in stockholders' equity, excludes redeemable interests' share	$ 1,961				1,934
Net Income (Loss) Attributable to Noncontrolling Interest	27						38
Other comprehensive income, net of tax, attributable to parent	1,505					(429)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Excludes Redeemable Interests' Share	1,972
Other comprehensive income, net of tax, attributable to noncontrolling interest	(19)						(9)
Other Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Non Contolling Interest, Excludes Redeemable Interests' Share	(438)
Stock-based awards exercised or vested	59		(86)	$ 145
Stock-based awards exercised or vested (in shares)				(1,406)
Shares repurchased (in shares)				779
Shares repurchased				$ (100)
Recognition of stock-based compensation	$ 147		147
Dividends declared					(1,566)
Dividends declared per share	$ 4.64
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders							(98)
Dividends, Common Stock, Cash and Decrease from Distributions to Noncontrolling Interest Holders	$ (1,664)
Other	(13)		(13)	1	25	(1)	1
Ending Balance at Dec. 31, 2022	700
Common Stock, Value, Issued at Dec. 31, 2022	473	$ 473
Additional Paid in Capital at Dec. 31, 2022	679		$ 679
Treasury Stock, Value at Dec. 31, 2022	$ (5,137)			$ (5,137)
Treasury stock (in shares) at Dec. 31, 2022	41,100			41,135
Retained Earnings at Dec. 31, 2022	$ 8,201				$ 8,201
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance at Dec. 31, 2022	$ (3,669)					$ (3,669)
Stockholders' Equity, Attributable to Noncontrolling Interest							$ 153
Increase (Decrease) in Stockholders' Equity
Common stock, shares, Issued	378,600	378,597

Consolidated Cash Flow Statement - USD ($) $ in Millions	12 Months Ended
Consolidated Cash Flow Statement - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating Activities
Net income	$ 1,961	$ 1,844	$ 2,396
Depreciation and amortization	754	766	796
Asset Impairments	0	3	17
Stock-based compensation	150	26	147
Deferred income taxes	(57)	(70)	45
Net (gains) losses on asset dispositions	15	39	68
Equity companies' earnings (in excess of) less than dividends paid	6	25	(30)
Operating working capital	(17)	46	363
Postretirement benefits	(4)	47	(28)
Other	10	4	(45)
Cash Provided by Operations	2,733	2,730	3,729
Investing Activities
Capital spending	(876)	(1,007)	(1,217)
Payments to Acquire Businesses, Net of Cash Acquired	(46)	0	(1,083)
Proceeds from dispositions of property	12	43	31
Investments in time deposits	(658)	(918)	(753)
Maturities of time deposits	797	836	690
Other	(14)	(10)	27
Cash Used for Investing	(785)	(1,056)	(2,305)
Financing Activities
Cash dividends paid	(1,558)	(1,516)	(1,451)
Change in short-term debt	261	(97)	(561)
Debt proceeds	0	605	1,845
Debt repayments	(312)	(269)	(854)
Proceeds from exercise of stock options	94	65	217
Acquisitions of common stock for the treasury	(100)	(400)	(700)
Other	(47)	(48)	(26)
Cash Used for Financing	(1,760)	(1,696)	(1,567)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations	(31)	(11)	4
Change in Cash and Cash Equivalents	157	(33)	(139)
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents	427	270	303
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain	(85)	0	0
Payments of Ordinary Dividends, Noncontrolling Interest	$ (98)	$ (36)	$ (37)

Accounting Policies	12 Months Ended
Accounting Policies	Dec. 31, 2022
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies Basis of Presentation The consolidated financial statements present the accounts of Kimberly-Clark Corporation and all subsidiaries in which it has a controlling financial interest as if they were a single economic entity in conformity with accounting principles generally accepted in the United States of America ("GAAP"). All intercompany transactions and accounts are eliminated in consolidation. The terms "Corporation," "Kimberly-Clark," "we," "our," and "us" refer to Kimberly-Clark Corporation and all subsidiaries in which it has a controlling financial interest. Dollar amounts are reported in millions, except per share dollar amounts, unless otherwise noted. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Estimates are used in accounting for, among other things, sales incentives and trade promotion allowances, employee postretirement benefits, and deferred income taxes and potential assessments. Cash Equivalents Cash equivalents are short-term investments with an original maturity date of three months or less. Inventories and Distribution Costs Most U.S. inventories are valued at the lower of cost, using the Last-In, First-Out ("LIFO") method, or market. The balance of the U.S. inventories and inventories of consolidated operations outside the U.S. are valued at the lower of cost or net realizable value using either the First-In, First-Out ("FIFO") or weighted-average cost methods. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Distribution costs are classified as cost of products sold. Property and Depreciation Property, plant and equipment are stated at cost and are depreciated on the straight-line method. Buildings are depreciated over their estimated useful lives, primarily 40 years. Machinery and equipment are depreciated over their estimated useful lives, primarily ranging from 16 to 20 years. Purchases of computer software, including external costs and certain internal costs (including payroll and payroll-related costs of employees) directly associated with developing significant computer software applications for internal use, are capitalized. Computer software costs are amortized on the straight-line method over the estimated useful life of the software, which generally does not exceed 5 years. Estimated useful lives are periodically reviewed and, when warranted, changes are made to them. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss would be indicated when estimated undiscounted future cash flows from the use and eventual disposition of an asset group, which are identifiable and largely independent of the cash flows of other asset groups, are less than the carrying amount of the asset group. Measurement of an impairment loss would be based on the excess of the carrying amount of the asset group over its fair value. Fair value is measured using discounted cash flows or independent appraisals, as appropriate. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the consolidated balance sheet and any gain or loss on the transaction is included in income. Goodwill and Other Intangible Assets Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is not amortized, but rather is assessed for impairment annually and whenever events and circumstances indicate that impairment may have occurred. Impairment testing compares the reporting unit carrying amount, including goodwill, with its fair value. If the reporting unit carrying amount, including goodwill, exceeds its fair value, a goodwill impairment charge for the excess amount above fair value would be recorded. In our evaluation of goodwill impairment, we have the option to first assess qualitative factors such as macroeconomic, industry and competitive conditions, legal and regulatory environments, historical and projected financial performance, significant changes in the reporting unit and the magnitude of excess fair value over carrying amount from the previous quantitative impairment testing. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test using discounted cash flows to estimate fair value must be performed. Alternatively, if the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is more than its carrying value, then further quantitative testing is not required. For 2022, we completed the required annual assessment of goodwill for impairment for all of our reporting units using a qualitative assessment as of the first day of the third quarter, and we determined that it is more likely than not that the fair value of goodwill significantly exceeds the carrying amount for each of our reporting units. Indefinite-lived intangible assets, other than goodwill, consist of certain brand names related to our acquisition of Softex Indonesia and are tested for impairment annually at the same time as our goodwill impairment assessment and whenever events and circumstances indicate that impairment may have occurred. Our estimate of the fair value of our brand assets is based on a discounted cash flow model and a market-based approach using inputs which include projected revenues from our long-range plan, assumed royalty rates that could be payable if we did not own the brands, and a discount rate. For 2022, we completed the required annual assessment of indefinite-lived intangible assets, other than goodwill, for impairment using a qualitative assessment as of the first day of the third quarter, and we determined that it is more likely than not that the fair value is more than the carrying amount for each of these intangible assets. Intangible assets with finite lives are amortized over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss would be indicated when estimated undiscounted future cash flows from the use of the asset are less than its carrying amount. An impairment loss would be measured as the difference between the fair value (based on discounted future cash flows) and the carrying amount of the asset. Estimated useful lives range from 10 to 20 years for trademarks and 4 to 20 years for certain acquired distributor and customer relationships. Investments in Equity Companies Investments in companies which we do not control but over which we have the ability to exercise significant influence and that, in general, are at least 20 percent-owned by us, are stated at cost plus equity in undistributed net income. These investments are evaluated for impairment when warranted. An impairment loss would be recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other than temporary. In judging "other than temporary," we would consider the length of time and extent to which the fair value of the equity company investment has been less than the carrying amount, the near-term and longer-term operating and financial prospects of the equity company, and our longer-term intent of retaining the investment in the equity company. Revenue Recognition Sales revenue is recognized at the time of product shipment or delivery, depending on when control passes, to unaffiliated customers, and when all of the following have occurred: a firm sales agreement is in place, pricing is fixed or determinable, and collection is reasonably assured. Sales are reported net of returns, consumer and trade promotions, rebates and freight allowed. Taxes imposed by governmental authorities on our revenue-producing activities with customers, such as sales taxes and value-added taxes, are excluded from net sales. Sales Incentives and Trade Promotion Allowances The cost of promotion activities provided to customers is classified as a reduction in sales revenue. In addition, the estimated redemption value of consumer coupons and related expense are recorded when the related revenue from customers is realized. Rebate and promotion accruals are based on estimates of the quantity of customer sales. Promotion accruals also consider estimates of the number of consumer coupons that will be redeemed and timing and costs of activities within the promotional programs. Advertising Expense Advertising costs are expensed in the year the related advertisement or campaign is first presented through traditional or digital media. For interim reporting purposes, advertising expenses are charged to operations as a percentage of sales based on estimated sales and related advertising expense for the full year. Research Expense Research and development costs are charged to expense as incurred. Other Income Certain amounts not directly associated with the current operations of the business are recorded in Other (income) and expense, net. In the first quarter of 2022, an $85 non-recurring, non-cash gain was recognized in Other (income) expense, net as a result of the remeasurement of the carrying value of our previously held equity investment to fair value upon the acquisition of a controlling interest in Thinx Inc. ("Thinx"). See Note 3 for details on the acquisition of Thinx. In the fourth quarter of 2020, we received a favorable legal ruling that resolved certain matters related to prior years’ business taxes in Brazil. These matters involved the revenue base, which included value added taxes, used to calculate and pay social security taxes for the period 2004 to 2014. In the legal ruling, the São Paulo State Court recognized our right to exclude the value added taxes from the revenue base used to calculate those social security taxes. This decision resulted in business tax credits being recognized of $77. Foreign Currency Translation The income statements of foreign operations, other than those in highly inflationary 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 translation adjustments. Under highly inflationary accounting, the countries' functional currency becomes the U.S. dollar, and its income statement and balance sheet are measured in U.S. dollar using both current and historical rates of exchange. As of July 1, 2018, we elected to adopt highly inflationary accounting for our subsidiaries in Argentina (“K-C Argentina”). The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net and was not material. As of December 31, 2022, K-C Argentina had a small net peso monetary position. Net sales of K-C Argentina were approximately 1 percent of our consolidated net sales in 2022, 2021 and 2020. As of April 1, 2022, we elected to adopt highly inflationary accounting for our subsidiary in Turkey (“K-C Turkey”). The effect of changes in exchange rates on lira-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net and was not material. As of December 31, 2022, K-C Turkey had a small net lira monetary position. Net sales of K-C Turkey were less than 1 percent of our consolidated net sales. Derivative Instruments and Hedging Our policies allow the use of derivatives for risk management purposes and prohibit their use for speculation. Our policies also prohibit the use of any leveraged derivative instrument. Consistent with our policies, foreign currency derivative instruments, interest rate swaps and locks, and the majority of commodity hedging contracts are entered into with major financial institutions. At inception, we formally designate certain derivatives as cash flow, fair value or net investment hedges and establish how the effectiveness of these hedges will be assessed and measured. This process links the derivatives to the transactions or financial balances they are hedging. Changes in the fair value of derivatives not designated as hedging instruments are recorded in earnings as they occur. All derivative instruments are recorded as assets or liabilities on the balance sheet at fair value. Changes in the fair value of derivatives are either recorded in the income statement or other comprehensive income, as appropriate. The gain or loss on derivatives designated as fair value hedges and the offsetting loss or gain on the hedged item attributable to the hedged risk are included in income in the period that changes in fair value occur. The gain or loss on derivatives designated as cash flow hedges is included in other comprehensive income in the period that changes in fair value occur, and is reclassified to income in the same period that the hedged item affects income. The gain or loss on derivatives designated as hedges of investments in foreign subsidiaries is recognized in other comprehensive income to offset the change in value of the net investments being hedged. Certain foreign-currency derivative instruments not designated as hedging instruments have been entered into to manage certain non-functional currency denominated monetary assets and liabilities. The gain or loss on these derivatives is included in income in the period that changes in their fair values occur. Cash flows from derivatives are classified within the consolidated statement of cash flows in the same category as the items being hedged. Cash flows from derivatives are classified within Operating Activities, except for derivatives designated as net investment hedges which are classified in Investing Activities. See Note 12 for disclosures about derivative instruments and hedging activities. Leases Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain nonlease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. Certain lease agreements with lease and nonlease components are combined as a single lease component. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Accounting Standard Issued - Not Adopted as of December 31, 2022 In 2022, the Financial Accounting Standards Board issued Accounting Standard Update (“ASU”) No. 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50). The new guidance requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. We adopted this ASU as of January 1, 2023 on a prospective basis. As the guidance requires only additional disclosures, the effects of this standard on our financial position, results of operations and cash flows were not material.

2018 Global Restructuring Program

12 Months Ended

Dec. 31, 2022

2018 Global Restructuring Program

Restructuring Cost and Reserve

Restructuring and Related Activities Disclosure

2018 Global Restructuring Program

In 2018, we initiated our 2018 Global Restructuring Program to reduce our structural cost base by streamlining and simplifying our manufacturing supply chain and overhead organization. The restructuring actions were completed in 2021. We closed or sold 11 manufacturing facilities and expanded production capacity at several others. We exited or divested some lower-margin businesses that generated approximately 1 percent of our net sales. Workforce reductions were approximately 6,000. The restructuring impacted all of our business segments and our organizations in all major geographies.

The restructuring actions were completed with total costs of $2.2 billion pre-tax ($1.6 billion after tax). Pre-tax cash and non-cash costs of $1.2 billion and $1.0 billion, respectively, were incurred.

The following net charges were incurred in connection with the 2018 Global Restructuring Program:


	Year Ended December 31
	2021		2020		2019		2018		Total
Cost of products sold:
Charges for workforce reductions	$	4	$	10	$	31	$	149	$	194
Asset impairments	3		17		—		74		94
Asset write-offs	17		63		54		112		246
Incremental depreciation	18		94		235		172		519
Other exit costs	112		99		96		34		341
Total	154		283		416		541		1,394
Marketing, research and general expenses:
Charges for workforce reductions	39		13		(12)		243		283
Other exit costs	72		96		111		137		416
Total	111		109		99		380		699
Other (income) and expense, net(a)	10		(9)		(194)		(12)		(205)
Nonoperating expense(b)	79		36		45		127		287
Total charges	354		419		366		1,036		2,175
Provision for income taxes	(75)		(94)		(118)		(243)		(530)
Net charges	279		325		248		793		1,645
Net impact related to equity companies and noncontrolling interests	2		(2)		—		(10)		(10)
Net charges attributable to Kimberly-Clark Corporation	$	281	$	323	$	248	$	783	$	1,635

(a)Other (income) and expense, net in 2019 was the result of pre-tax gains on the sales of manufacturing facilities and associated real estate which were disposed of as part of the restructuring.

(b)Represents non-cash pension settlement and curtailment charges resulting from restructuring actions, primarily in the U.S., United Kingdom and Canada.

The measurement of the asset impairment charges was based on the excess of the carrying values of the impacted asset groups over their fair values. These fair values were measured by using discounted cash flows expected over the limited time the assets would remain in use or the expected sales value, and as a result, the assets were essentially written off or written down to fair value less costs to sell. The use of discounted cash flows represents a level 3 measure under the fair value hierarchy.

The following summarizes the restructuring liabilities activity:


	2021
Restructuring liabilities at January 1	$	93
Charges for workforce reductions and other cash exit costs	222
Cash payments	(235)
Currency and other	(2)
Restructuring liabilities at December 31	$	78

As of December 31, 2022, remaining restructuring liabilities were not material. As of December 31, 2021, restructuring liabilities of $75 were recorded in Accrued expenses and other current liabilities and $3 were recorded in Other Liabilities. The impact related to restructuring charges was recorded in Operating working capital and Other Operating Activities, as appropriate, in our consolidated cash flow statement. Cash payments of $249, $302 and $325 were made during 2020, 2019 and 2018, respectively.

Acquisition

12 Months Ended

Dec. 31, 2022

Business Combinations [Abstract]

Mergers, Acquisitions and Dispositions Disclosures

Acquisitions

2022 Thinx Acquisition

On February 24, 2022, we completed our acquisition of a majority and controlling share of Thinx, an industry leader in the reusable period and incontinence underwear category, for total consideration of $181 consisting of cash of $53, the fair value of our previously held equity investment of $127, and certain share-based award costs of $1.

We previously accounted for our ownership interest in Thinx as an equity method investment, but upon increasing our ownership to 58%, we began consolidating the operations of Thinx into our financial statements at the end of the first quarter of 2022. The consolidated results of operations for Thinx are reported in our Personal Care business segment on a one-month lag. The share of Thinx net income and equity attributable to the third-party minority owner of Thinx is classified in our consolidated income statement within Net income attributable to noncontrolling interests and in our consolidated balance sheet within Redeemable Common and Preferred Securities of Subsidiaries. This noncontrolling equity interest is measured at the estimated redemption value, which approximates fair value.

We have substantially completed an initial purchase price allocation in which we utilized several generally accepted valuation methodologies to estimate the fair value of certain acquired assets. The primary valuation methods included two forms of the Income Approach (i.e., the multi-period excess earnings method [distributor method] and the relief-from-royalty method). These valuation methodologies are commonly used to value similar identifiable intangible assets in the Consumer Packaged Goods industry. All of the selected valuation methodologies incorporate unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy in Accounting Standard Codification 820, Fair Value Measurements. In connection with these valuation methodologies, we are required to make estimates and assumptions regarding market comparable companies, revenue growth rates, operating margins, distributor and customer attrition rates, royalty rates, distributor margins, discount rates, etc., which are primarily based on cash flow forecasts, business plans, economic projections and other information available to market participants.

The total purchase price consideration was allocated to the net assets acquired based upon their respective estimated fair values as follows:





Current assets	$	28
Property, Plant and Equipment, Net	2
Goodwill	297
Other Intangible Assets, Net	123
Other assets	4
Current liabilities	(17)
Deferred income taxes	(18)
Other liabilities	(4)
Fair value of net assets acquired	415

Less fair value of noncontrolling interest	(234)
Total purchase price consideration	$	181

Other Intangible Assets, Net includes brands and customer relationships which have estimated useful lives of 4 to 15 years, primarily 15 years. Based on the carrying value of these finite-lived assets as of December 31, 2022, amortization expense per year for each of the next five years is estimated to be approximately $8.

Goodwill of $297 was allocated to the Personal Care business segment. The goodwill is primarily attributable to future growth opportunities and any intangible assets that did not qualify for separate recognition. For tax purposes, the acquisition of additional Thinx shares was treated as a stock acquisition, and the goodwill acquired is not tax deductible.

The preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in adjustments to the preliminary values discussed above. We continue to evaluate potential contingencies that may have existed as of the acquisition date and expect to finalize the purchase price allocation no later than the first quarter of 2023.

As a result of this transaction during the quarter ended March 31, 2022, an $85 non-recurring, non-cash gain was recognized in Other (income) expense, net as a result of the remeasurement of the carrying value of our previously held equity investment to fair value, and related transaction and integration costs of $21 were recorded in Marketing, research and general expenses. This recognition resulted in a net benefit of $64 pre-tax ($68 after tax) being included in our consolidated income statement for the quarter ended March 31, 2022. In addition, we removed the non-cash gain impact from Operating Activities in our consolidated cash flow statements for the year ended December 31, 2022.

Pro forma results of operations have not been presented as the impact on our consolidated financial statements is not material.

2020 Softex Indonesia Acquisition

On October 1, 2020 (“Acquisition Date”), we acquired Softex Indonesia, a leader in the fast-growing Indonesian personal care market, in an all-cash transaction for approximately $1.2 billion. This transaction significantly expands our presence in an important developing and emerging market and is a strong strategic fit with our core business. The transaction price, subject to working capital and net debt adjustments, resulted in a final purchase price of $1.1 billion in addition to the assumption of certain indebtedness of Softex Indonesia at closing. During the year ended December 31, 2020, we recorded transaction and integration costs of $32 in Marketing, research and general expenses.

During the fourth quarter of 2020, we substantially completed and recorded an initial purchase price allocation, in which we utilized several generally accepted valuation methodologies to determine the fair value of certain acquired assets. The primary valuation methods included the replacement cost approach, sales comparison approach, discounted cash flow, multi-period excess earnings, relief from royalty and distributor methods. The purchase price allocation was finalized by October 2021 and included an immaterial amount of recorded measurement period adjustments. The measurement period adjustments to the initial allocation were based on more detailed information obtained about the specific assets acquired and liabilities assumed as of the Acquisition Date.

Goodwill of $404 was allocated to the Personal Care business segment. The goodwill is primarily attributable to future growth opportunities and any intangible assets that did not qualify for separate recognition. While the goodwill is not deductible for local tax purposes, it is treated as an amortizable expense for the U.S. global intangible low-taxed income ("GILTI") computation.

The consolidated results of operations for Softex Indonesia are reported primarily in our Personal Care business segment on a one-month lag.

Intangible Assets, Goodwill and Other

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2022 and 2021 were as follows:


	Personal Care		Consumer Tissue		K-C Professional		Total
Balance as of December 31, 2020	$	984	$	519	$	392	$	1,895
Acquisition	14		—		—		14
Effect of foreign currency translation	(37)		(25)		(7)		(69)
Balance as of December 31, 2021	961		494		385		1,840
Acquisition	304		—		—		304
Effect of foreign currency translation	(60)		(6)		(4)		(70)
Balance as of December 31, 2022	$	1,205	$	488	$	381	$	2,074

The changes in the carrying amount of Other Intangible Assets, Net for the years ended December 31, 2022 and 2021 were as follows:


	December 31
	2022						2021
	Gross Carrying Amount(b)		Accumulated Amortization(b)		Net Carrying Amount		Gross Carrying Amount(b)		Accumulated Amortization(b)		Net Carrying Amount
Intangible assets with indefinite lives:
Brand names	$	610	$	—	$	610	$	666	$	—	$	666
Intangibles assets with finite lives:
Trademarks and brand names	253		(91)		162		140		(82)		58
Other intangible assets(a)	98		(19)		79		103		(17)		86
Total intangible assets with finite lives	351		(110)		241		243		(99)		144
Total	$	961	$	(110)	$	851	$	909	$	(99)	$	810

(a) Other intangible assets primarily include customer and distributor relationships.

(b) Amounts subject to foreign currency adjustments.

Amortization expense relating to the intangible assets with finite lives was $15, $9 and $2 for the three years ended December 31, 2022, 2021 and 2020, respectively. Based on the carrying values of the intangible assets with finite lives as of December 31, 2022, amortization expense for each of the next five years is estimated to be approximately $17.

Fair Value Information

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Information

The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are:

Level 1—Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities.

Level 2—Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3—Prices or valuations that require inputs that are significant to the valuation and are unobservable.

A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

During 2022 and 2021, there were no significant transfers to or from level 3 fair value determinations.

Derivative assets and liabilities are measured on a recurring basis at fair value. At December 31, 2022 and 2021, derivative assets were $99 and $65, respectively, and derivative liabilities were $318 and $41, respectively. The fair values of derivatives used to manage interest rate risk and commodity price risk are based on LIBOR rates and interest rate swap curves and commodity price quotations, respectively. The fair values of hedging instruments used to manage foreign currency risk are based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. Measurement of our derivative assets and liabilities is considered a level 2 measurement. See Note 12 for additional information on our use of derivative instruments.

Redeemable common and preferred securities of subsidiaries are measured on a recurring basis at their estimated redemption values, which approximates fair value. As of December 31, 2022 and 2021, the securities were valued at $258 and $26 respectively. No redeemable common securities were outstanding at December 31, 2021. The securities are not traded in active markets, and their measurement is considered a level 3 measurement.

Company-owned life insurance ("COLI") assets are measured on a recurring basis at fair value. COLI assets were $63 and $72 at December 31, 2022 and 2021, respectively. The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in other assets. The COLI policies are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy.

The following table includes the fair value of our financial instruments for which disclosure of fair value is required:


	Fair Value Hierarchy Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		December 31, 2022				December 31, 2021
Assets
Cash and cash equivalents(a)	1	$	427	$	427	$	270	$	270
Time deposits(b)	1	268		268		416		416
Liabilities
Short-term debt(c)	2	373		373		118		118
Long-term debt(d)	2	8,049		7,403		8,456		9,492

(a)Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at cost, which approximates fair value.

(b)Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of greater than one year, included in Other current assets or Other Assets in the consolidated balance sheet, as appropriate. Time deposits are recorded at cost, which approximates fair value.

(c)Short-term debt is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value.

(d)Long-term debt includes the current portion of these debt instruments. Fair values were estimated based on quoted prices for financial instruments for which all significant inputs were observable, either directly or indirectly.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Debt and Redeemable Preferred Securities of Subsidiaries

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt and Redeemable Preferred Securities of Subsidiaries

Debt and Redeemable Common and Preferred Securities of Subsidiaries

Long-term debt is composed of the following:


	Weighted- Average Interest Rate	Maturities	December 31
			2022		2021
Notes and debentures	3.3%	2023 - 2050	$	7,825	$	8,198
Industrial development revenue bonds	4.6%	2023 - 2045	169		169
Bank loans and other financings in various currencies	2.5%	2023 - 2051	55		89
Total long-term debt			8,049		8,456
Less current portion			471		315
Long-term portion			$	7,578	$	8,141

Scheduled maturities of long-term debt for the next five years are $472 in 2023, $524 in 2024, $550 in 2025, $396 in 2026 and $595 in 2027.

In October 2021, we issued $600 aggregate principal amount of 2.00% notes due November 2, 2031. Proceeds from the offering were used for general corporate purposes.

We maintain a $2.0 billion revolving credit facility which expires in June 2026 and a $775 revolving credit facility which expires in June 2023. These facilities, currently unused, support our commercial paper program, and would provide liquidity in the event our access to the commercial paper markets is unavailable for any reason.

Outstanding redeemable common securities represent the share of Thinx equity attributable to the third-party minority owner of Thinx. Our subsidiary in Central America has outstanding redeemable preferred securities that are held by a non-controlling interest.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation

We have a stock-based Equity Participation Plan and an Outside Directors' Compensation Plan (the "Plans"), under which we can grant stock options, restricted shares and restricted share units to employees and outside directors. As of December 31, 2022, the number of shares of common stock available for grants under the Plans aggregated 9.5 million shares.

Stock options are granted at an exercise price equal to the fair market value of our common stock on the date of grant, and they have a term of 10 years. Stock options are subject to graded vesting whereby options vest 30 percent at the end of each of the first two 12-month periods following the grant and 40 percent at the end of the third 12-month period.

Time-vested restricted share unit grants starting in 2022 are valued at the closing market price of our common stock on the grant date and are generally subject to a graded vesting whereby shares vest 30 percent at the end of each of the first two 12-month periods following the grant and 40 percent at the end of the third 12-month period. Time-vested restricted share unit grants issued prior to 2022 or issued for special one-time awards, restricted shares units and performance-based restricted share units granted to employees are valued at the closing market price of our common stock on the grant date and vest generally at the end of three years. The number of performance-based share units that ultimately vest ranges from zero to 200 percent of the number granted based on performance. Beginning in 2021, performance metrics are tied to modified free cash flow and organic sales growth during the three-year performance period. Modified free cash flow and organic sales growth are set at the beginning of the performance period. Performance-based share units granted prior to 2021 are structured similarly but vest on performance tied to return on invested capital ("ROIC") and net sales. Restricted share units granted to outside directors are valued at the closing market price of our common stock on the grant date and vest when they are granted. The restricted period begins on the date of grant and expires on the date the outside director retires from or otherwise terminates service on our Board.

At the time stock options are exercised or restricted shares and restricted share units become payable, common stock is issued from our accumulated treasury shares. Dividend equivalents are credited on restricted share units on the same date and at the same rate as dividends are paid on Kimberly-Clark's common stock. These dividend equivalents, net of estimated forfeitures, are charged to retained earnings.

Stock-based compensation costs of $150, $26 and $147 and related deferred income tax benefits of $33, $7 and $32 were recognized for 2022, 2021 and 2020, respectively.

The fair value of stock option awards was determined using a Black-Scholes-Merton option-pricing model utilizing a range of assumptions related to dividend yield, volatility, risk-free interest rate, and employee exercise behavior. Dividend yield is based on historical experience and expected future dividend actions. Expected volatility is based on a blend of historical volatility and implied volatility from traded options on Kimberly-Clark's common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. We estimate forfeitures based on historical data.

The weighted-average fair value of options granted was estimated at $21.28, $10.26 and $15.92, in 2022, 2021 and 2020, respectively, per option on the date of grant based on the following assumptions:


	Year Ended December 31
	2022		2021		2020
Dividend yield	3.3	%	3.9	%	3.3	%
Volatility	22.1	%	17.4	%	21.9	%
Risk-free interest rate	2.8	%	0.8	%	0.3	%
Expected life - years	4.6		4.6		4.5

Total remaining unrecognized compensation costs and amortization period are as follows:


	December 31, 2022		Weighted-Average Service Years
Stock options	$	10	0.6
Restricted shares and time-vested restricted share units	51		1.4
Performance-based restricted share units	31		1.6

A summary of stock-based compensation is presented below:


Stock Options	Shares (in thousands)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2022	5,596	$	126.01
Granted	655	116.28
Exercised	(842)	113.00
Forfeited or expired	(292)	127.70
Outstanding at December 31, 2022	5,117	126.81		5.73	$	52
Exercisable at December 31, 2022	3,658	125.03		4.74	$	42

The total intrinsic value of options exercised during 2022, 2021 and 2020 was $21, $16 and $62, respectively.


	Time-Vested Restricted Share Units			Performance-Based Restricted Share Units
Other Stock-Based Awards	Shares (in thousands)	Weighted- Average Grant-Date Fair Value		Shares (in thousands)	Weighted- Average Grant-Date Fair Value
Nonvested at January 1, 2022	393	$	131.85	1,410	$	131.03
Granted	718	131.37		517	133.24
Vested	(172)	131.00		(672)	124.43
Forfeited	(94)	137.25		(152)	134.60
Nonvested at December 31, 2022	845	134.81		1,103	138.96

The total fair value of restricted share units that were distributed to participants during 2022, 2021 and 2020 was $118, $100 and $62, respectively.

Employee Postretirement Benefits

12 Months Ended

Dec. 31, 2022

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Employee Postretirement Benefits

Substantially all regular employees in the U.S. and the United Kingdom are covered by defined contribution retirement plans and certain U.S. and United Kingdom employees previously earned benefits covered by defined benefit pension plans that currently provide no future service benefit (the "Principal Plans"). Certain other subsidiaries have defined benefit pension plans or, in certain countries, termination pay plans covering substantially all regular employees. The funding policy for our qualified defined benefit pension plans is to contribute assets at least equal in amount to regulatory minimum requirements. Nonqualified U.S. plans providing pension benefits in excess of limitations imposed by the U.S. income tax code are not funded.

Substantially all U.S. retirees and employees have access to our unfunded health care and life insurance benefit plans. The annual increase in the consolidated weighted-average health care cost trend rate is expected to be 5.7 percent in 2023 and to decline to 4.5 percent in 2030 and thereafter. Assumed health care cost trend rates affect the amounts reported for postretirement health care benefit plans.

As a result of restructuring actions related to the 2018 Global Restructuring Program, aggregate pension settlement charges of $91, and $49 during 2021 and 2020, respectively, and curtailment gains of $2 during 2021 were recognized in Nonoperating

expense, primarily related to the defined benefit pension plans in the U.S, Switzerland and the United Kingdom (see Note 2 for further information about the 2018 Global Restructuring Program).

Summarized financial information about postretirement plans, excluding defined contribution retirement plans, is presented below:


	Pension Benefits				Other Benefits
	Year Ended December 31
	2022		2021		2022		2021
Change in Benefit Obligation
Benefit obligation at beginning of year	$	3,811	$	4,341	$	669	$	709
Service cost	16		21		7		8
Interest cost	89		80		21		19
Actuarial (gain) loss(a)	(1,000)		(105)		(113)		(8)
Currency and other	(197)		(54)		2		(3)
Benefit payments from plans	(173)		(138)		—		—
Direct benefit payments	(8)		(8)		(53)		(54)
Settlements and curtailments	(97)		(326)		—		(2)
Benefit obligation at end of year	2,441		3,811		533		669
Change in Plan Assets
Fair value of plan assets at beginning of year	3,744		4,193		—		—
Actual return on plan assets	(987)		52		—		—
Employer contributions	30		10		—		—
Currency and other	(199)		(45)		—		—
Benefit payments	(173)		(138)		—		—
Settlements	(94)		(328)		—		—
Fair value of plan assets at end of year	2,321		3,744		—		—
Funded Status	$	(120)	$	(67)	$	(533)	$	(669)

(a) The actuarial net gains in 2022 and in 2021 were primarily due to discount rate increases.

Substantially all of the funded status of pension and other benefits is recognized in the consolidated balance sheet in Noncurrent Employee Benefits, with the remainder recognized in Accrued expenses and other current liabilities and Other Assets.

Information for the Principal Plans and All Other Pension Plans


	Principal Plans				All Other Pension Plans				Total
	Year Ended December 31
	2022		2021		2022		2021		2022		2021
Projected benefit obligation (“PBO”)	$	2,089	$	3,339	$	352	$	472	$	2,441	$	3,811
Accumulated benefit obligation (“ABO”)	2,089		3,339		305		408		2,394		3,747
Fair value of plan assets	2,018		3,389		303		355		2,321		3,744

Approximately one-half of the PBO and fair value of plan assets for the Principal Plans relate to the U.S. qualified and nonqualified pension plans.

Information for Pension Plans with an ABO in Excess of Plan Assets


	December 31
	2022		2021
ABO	$	1,251	$	1,788
Fair value of plan assets	1,089		1,616

Information for Pension Plans with a PBO in Excess of Plan Assets


	December 31
	2022		2021
PBO	$	1,261	$	1,835
Fair value of plan assets	1,091		1,648

Components of Net Periodic Benefit Cost


	Pension Benefits						Other Benefits
	Year Ended December 31
	2022		2021		2020		2022		2021		2020
Service cost	$	16	$	21	$	22	$	7	$	8	$	8
Interest cost	89		80		95		21		19		23
Expected return on plan assets(a)	(123)		(132)		(134)		—		—		—
Recognized net actuarial loss	34		37		42		1		1		1
Settlements and curtailments	52		89		49		—		—		—
Other	1		(5)		(4)		(1)		(2)		(2)
Net periodic benefit cost	$	69	$	90	$	70	$	28	$	26	$	30

(a)The expected return on plan assets is determined by multiplying the fair value of plan assets at the remeasurement date, typically the prior year-end adjusted for estimated current year cash benefit payments and con