Kimberly-Clark 2015 Annual Report Download - page 10

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Theinabilitytoeffectivelyandefficientlymanagedivestituresandacquisitionswiththeresultsweexpectorinthetimeframeweanticipatecouldadverselyaffect
ourbusiness,consolidatedfinancialcondition,resultsofoperationsorliquidity.
The 2014 spin-off of our health care business could result in substantial tax liability to us and our shareholders.
OnOctober31, 2014,wecompletedthe spin-offofour healthcarebusiness, creatingastand-alone, publiclytradedhealth carecompany,Halyard Health,Inc.
("Halyard"). Historically, the IRS provided companies seeking to perform a spin-off transaction with an advance ruling that the proposed spin-off transaction
wouldqualifyfortax-freetreatment.However,theIRSnolongerprovidessuchadvancerulings.Priortocompletingthespin-offofourhealthcarebusiness,we
obtainedanopinionofcounselthatneitherwenorourU.S.shareholderswillrecognizetaxableincome, gainorlossforU.S.federal incometaxpurposesasa
resultofthespin-off.Theopinionofcounselisbasedoncertainstatementsandrepresentations madebyus,which,ifincompleteorinaccurateinanymaterial
respect,couldinvalidatetheopinionofcounsel.Inaddition,thisopinionisnotbindingontheIRS.Accordingly,theIRSorthecourtsmayreachconclusionswith
respecttothespin-offthataredifferentfromtheconclusionsreachedintheopinionofcounsel.
Ifthespin-offandcertainrelatedtransactionsweredeterminedtobetaxable,wewouldbesubjecttoasubstantialtaxliability.Inaddition,ifthespin-offwere
deemedtaxable,eachU.S.holderofourcommonstockwhoreceivedsharesofHalyardwouldgenerallybetreatedasreceivingataxabledistributionofpropertyin
anamountequaltothefairmarketvalueofthesharesreceived.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
AtDecember31,2015weownorlease:
•ourprincipalexecutiveofficeslocatedintheDallas,Texasmetropolitanarea;
• fouroperatingsegmentandgeographicheadquartersattwoU.S.andtwointernationallocations;and
• fouradministrativecentersatoneU.S.andthreeinternationallocations.
Thelocationsofourandourequityaffiliates'principalproductionfacilitiesbymajorgeographicareasoftheworldareasfollows:
Geographic Area :
Number of
Facilities
UnitedStates(in16states) 18
Europe 13
Asia,LatinAmericaandother 63
WorldwideTotal(in39countries) 94
Manyofthesefacilitiesproducemultipleproducts.ConsumertissueandKCPproductsareproducedin57facilitiesandpersonalcareproductsareproducedin51
facilities.Webelievethatourandourequityaffiliates'facilitiesaresuitablefortheirpurpose,adequatetosupporttheirbusinessesandwellmaintained.
7 KIMBERLY-CLARKCORPORATION - 2015 Annual Report