Supplemental Data

Supplemental Income Statement Data



	Year Ended December 31
	2017		2016		2015
Advertising expense	$	648	$	665	$	710
Research expense	311		328		324

Equity Companies' Data



	Net Sales		Gross Profit		Operating Profit		Net Income		Corporation's Share of Net Income
2017	$	2,191	$	627	$	378	$	214	$	104
2016	2,138		720		454		276		132
2015	2,255		773		497		308		149
	Current Assets		Non-Current Assets		Current Liabilities		Non-Current Liabilities		Stockholders' Equity
2017	$	828	$	1,232	$	415	$	1,125	$	520
2016	963		1,168		531		1,046		554
2015	1,103		993		508		1,068		520

Equity companies are principally engaged in operations in the personal care and consumer tissue businesses. At December 31, 2017, our ownership interest in KCM and subsidiaries was 47.9 percent. KCM is partially owned by the public, and its stock is publicly traded in Mexico. At December 31, 2017, our investment in this equity company was $170, and the estimated fair value of the investment was $2.6 billion based on the market price of publicly traded shares. Our other equity ownership interests are not significant to our consolidated balance sheet or financial results.

At December 31, 2017, undistributed net income of equity companies included in consolidated retained earnings was $1.1 billion.

Supplemental Balance Sheet Data



	December 31
Summary of Accounts Receivable, Net	2017			2016
From customers	$	2,203		$	2,077
Other	168			167
Less allowance for doubtful accounts and sales discounts	(56		)	(68		)
Total	$	2,315		$	2,176



	December 31
	2017								2016
Summary of Inventories by Major Class	LIFO			Non- LIFO		Total			LIFO			Non- LIFO		Total
Raw materials	$	87		$	258	$	345		$	93		$	236	$	329
Work in process	110			103		213			114			89		203
Finished goods	421			684		1,105			430			600		1,030
Supplies and other	—			303		303			—			280		280
	618			1,348		1,966			637			1,205		1,842
Excess of FIFO or weighted-average cost over LIFO cost	(176		)	—		(176		)	(163		)	—		(163		)
Total	$	442		$	1,348	$	1,790		$	474		$	1,205	$	1,679

Inventories are valued at the lower of cost or net realizable value, determined on the FIFO or weighted-average cost methods, and at the lower of cost or market, determined on the LIFO cost method.



	December 31
Summary of Property, Plant and Equipment, Net	2017			2016
Land	$	173		$	163
Buildings	2,830			2,612
Machinery and equipment	14,612			13,591
Construction in progress	300			488
	17,915			16,854
Less accumulated depreciation	(10,479		)	(9,685		)
Total	$	7,436		$	7,169

Property, plant and equipment, net in the U.S. as of December 31, 2017 and 2016 was $3,591 and $3,638, respectively.



	December 31
Summary of Accrued Expenses	2017		2016
Accrued advertising and promotion	$	394	$	373
Accrued salaries and wages	449		426
Accrued rebates	227		220
Accrued taxes - income and other	249		259
Accrued interest	68		96
Derivatives	45		44
Other	298		357
Total	$	1,730	$	1,775

Supplemental Cash Flow Statement Data



Summary of Cash Flow Effects of Operating Working Capital	Year Ended December 31
Summary of Cash Flow Effects of Operating Working Capital	2017			2016			2015
Accounts receivable	$	(44	)	$	(23	)	$	60
Inventories	(33		)	230			(28		)
Trade accounts payable	174			(61		)	44
Accrued expenses	(102		)	26			(110		)
Accrued income taxes	(176		)	121			(81		)
Derivatives	(47		)	43			(63		)
Currency and other	80			(2		)	(267		)
Total	$	(148	)	$	334		$	(445	)



	Year Ended December 31
Other Cash Flow Data	2017		2016		2015
Interest paid	$	354	$	315	$	308
Income taxes paid	961		744		695