Stockholders' Equity

12 Months Ended

Dec. 31, 2020

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, 2018	$	(2,297)	$	(1,017)		$	12		$	3
Other comprehensive income (loss) before reclassifications	26		(27)			(24)			(22)
(Income) loss reclassified from AOCI	—		65		(a)	(1)		(a)	(12)
Net current period other comprehensive income (loss)	26		38			(25)			(34)

Balance as of December 31, 2019	(2,271)		(979)			(13)			(31)
Other comprehensive income (loss) before reclassifications	114		4			(26)			(31)
(Income) loss reclassified from AOCI	—		63		(a)	(1)		(a)	(1)
Net current period other comprehensive income (loss)	114		67			(27)			(32)
Balance as of December 31, 2020	$	(2,157)	$	(912)		$	(40)		$	(63)

(a) Included in computation of net periodic pension and other postretirement benefits costs (see Note 7).

Included in the above defined benefit pension plans and other postretirement benefit plans balances as of December 31, 2020 is $958 and $6 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
	2020		2019		2018
Unrealized translation	$	98	$	21	$	(408)
Tax effect(a)	16		5		(25)
	114		26		(433)

Defined benefit pension plans
Unrecognized net actuarial loss and transition amount
Funded status recognition	24		(17)		(57)
Amortization	41		44		47
Settlements and curtailments	49		46		134
Currency and other	(26)		(13)		29
	88		60		153
Unrecognized prior service cost/credit
Funded status recognition	2		(1)		(22)
Amortization	(4)		(5)		(8)
Curtailments	—		(1)		2
Currency and other	1		(2)		(1)
	(1)		(9)		(29)
Tax effect(a)	(20)		(13)		(165)
	67		38		(41)
Other postretirement benefit plans
Unrecognized net actuarial loss and transition amount and other	(35)		(35)		79
Tax effect(a)	8		10		(28)
	(27)		(25)		51
Cash flow hedges and other
Recognition of effective portion of hedges	(32)		(23)		56
Amortization	(2)		(16)		12
Currency and other	(5)		(1)		(2)
Tax effect(a)	7		6		(23)
	(32)		(34)		43


Change in AOCI	$	122	$	5	$	(380)

(a) The Tax effect for Unrealized translation, Defined benefit pension plans, Other postretirement benefit plans and Cash flow hedges and other includes reductions of $18, $125, $5 and $8, respectively, for stranded tax effects reclassified from AOCI to Retained earnings in 2018.

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 2020 is primarily due to the strengthening of various foreign currencies versus the U.S. dollar offset by certain currencies that weakened, most notably the Brazilian real. 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.