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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Introduction
ThisMD&Aisintendedtoprovideinvestorswithanunderstandingofourrecentperformance,financialconditionandprospects.Dollaramountsarereportedin
millions,exceptpersharedollaramounts,unlessotherwisenoted.Thefollowingwillbediscussedandanalyzed:
• OverviewofBusiness
• Overviewof2015Results
• ResultsofOperationsandRelatedInformation
• UnauditedQuarterlyData
• LiquidityandCapitalResources
• CriticalAccountingPoliciesandUseofEstimates
• LegalMatters
• BusinessOutlook
• InformationConcerningForward-LookingStatements
ThroughoutthisMD&A,werefertofinancialmeasuresthathavenotbeencalculatedinaccordancewithaccountingprinciplesgenerallyacceptedintheU.S.,or
GAAP,andarethereforereferredtoasnon-GAAPfinancialmeasures.Thesemeasuresincludeadjustedoperatingprofit,adjustednetincome,adjustedearnings
pershare,adjustedother(income)andexpense,net,andadjustedeffectivetaxrate.Webelievethesemeasuresprovideourinvestorswithadditionalinformation
aboutourunderlyingresultsandtrends,aswellasinsighttosomeofthefinancialmeasuresusedtoevaluatemanagement.
Non-GAAPfinancialmeasuresarenotmeanttobeconsideredinisolationorasasubstituteforthecomparableGAAPmeasures,andtheyshouldbereadonlyin
conjunctionwithourconsolidatedfinancialstatementspreparedinaccordancewithGAAP.Therearelimitationstothesenon-GAAPfinancialmeasuresbecause
theyarenotpreparedinaccordancewithGAAPandmaynotbecomparabletosimilarlytitledmeasuresofothercompaniesduetopotentialdifferencesinmethods
of calculation and items being excluded.  We compensate for these limitations by using these non-GAAP financial measures as a supplement to the GAAP
measuresandbyprovidingreconciliationsofthenon-GAAPandcomparableGAAPfinancialmeasures.
Thenon-GAAPfinancialmeasuresexcludethefollowingitemsfortherelevanttimeperiodsasindicatedinthereconciliationsincludedlaterinthisMD&A:
• Pensionsettlementcharges-In2015,werecordedsettlement-relatedchargesfromcertainactionstakenforourU.S.pensionplan.
• Charges related to Venezuelan Operations - Results in 2015, 2014 and 2013 include charges for remeasuring the local currency balance sheet in
Venezuela,andin2015includechargesforthedeconsolidationofourVenezuelanoperations.
• Uncertain tax positions adjustment - In the fourth quarter of 2015, we updated our assessment of uncertain tax positions for certain international
operations,andrecordedachargerelatedtoprioryearsinprovisionforincometaxes.
• 2014OrganizationRestructuring-InOctober2014,weinitiatedarestructuringplaninordertoimproveorganizationefficiencyandoffsettheimpact
of stranded overhead costs resulting from the spin-off of our health care business. Results in both 2014 and 2015 include charges related to this
initiative.
• Turkeyrestructuring-In2015,werecordedchargesrelatedtotherestructuringofouroperationsinTurkey.
• Regulatory dispute in the Middle East - In 2014, we recorded a charge as a result of an adverse court ruling regarding the treatment of capital
contributionsinprioryearstoanaffiliateintheMiddleEast.
• Europeanstrategicchangesandrelatedrestructuringcharges-In2012,weinitiatedstrategicchangestoandarelatedrestructuringinourWesternand
CentralEuropeanbusinesses.Resultsin2014and2013includechargesrelatedtothisrestructuringactivity.
Inaddition,weprovidecommentaryregardingorganicnetsales,whichexcludetheimpactofchangesinforeigncurrencyratesandlowersalesin2014and2013
associatedwithEuropeanstrategicchangesandtissuerestructuringactions.
12 KIMBERLY-CLARKCORPORATION - 2015 Annual Report