Kimberly-Clark 2015 Annual Report Download - page 18

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Consolidated Net Sales and Adjusted Operating Profit
Percent Change
2015vs.2014
Net sales of $18.6 billion decreased 6 percent compared to 2014, as changes in foreign currency
exchangeratesreducednetsalesmorethan10percent.Organicnetsalesincreased5percent,asvolumes
increased4percentandproductmixwasfavorableby1percent.Adjustedoperatingprofitof$3,210in
2015 increased 1 percent compared to $3,184 in 2014. The comparisons benefited from organic sales
growth, FORCE cost savingsof $365, input costdeflation of $150 and $65of savings from the 2014
Organization Restructuring. Translation effects due to changes in foreign currency exchange rates
lowered adjusted operating profit by $360 and foreign currency transaction effects also negatively
impactedtheoperatingprofitcomparisons.Totalmarketing,researchandgeneralexpensesincreasedon
alocalcurrencybasis,drivenbyhigheradministrativecosts.
2014vs.2013
Netsalesof$19.7billionincreased1percentcomparedto2013.Organicnetsalesincreased4percent,
withvolumesandnetsellingpriceseachincreasingnetsales by2percent.Foreigncurrencyexchange
rateswereunfavorableby2percentandlowersalesinconjunctionwithEuropeanstrategicchangesand
pulpandtissuerestructuringactionsreducedsalesby1percent.Adjustedoperatingprofitof$3,184in
2014 increased 5 percent compared to $3,020 in 2013. The comparisons benefited from organic sales
growth, FORCE cost savings of $320 and $30 of savings from pulp and tissue restructuring actions.
Inputcostswere$240higheroverallversus2013.Foreigncurrencytranslationeffectsreducedoperating
profitby$75andcurrencytransactioneffectsalsonegativelyimpactedtheoperatingprofitcomparison.
Net Sales
2015 vs.
2014
2014 vs.
2013
Volume
4
2
Restructuring
—
(1)
NetPrice
—
2
Mix/Other(a)
—
—
Currency
(10)
(2)
Total
(5.7)
0.8
Adjusted Operating Profit
Volume
8
5
NetPrice
1
13
InputCosts
5
(8)
CostSavings
11
11
CurrencyTranslation
(11)
(3)
Other
(13)
(13)
Total
0.8
5.4
(a)Mix/Otherincludesrounding
Other (Income) & Expense, Net Reconciliation of GAAP to Non-GAAP
Other(income)&expense,netincludesthefollowingadjustingitems:
Year Ended December 31
2015
2014
2013
Other(income)andexpense,net,GAAP $ 1,568
$ 453
$ 7
Lessadjustmentsfor:
PensionSettlements 1,358
—
—
ChargesRelatedtoVenezuelanOperations 148
421
36
RegulatoryDisputeinMiddleEast —
35
—
EuropeanStrategicChanges —
—
5
Adjustedother(income)andexpense,net $ 62
$(3)
$ (34)
Adjustedother(income)andexpense,netwasexpenseof$62in2015andincomeof$3in2014.Thechangewasdrivenbyhigherforeigncurrencytransaction
lossesin2015comparedto2014,andgainsonassetsalesin2014.Lowerincomeof$3in2014comparedto$34in2013wasdrivenbyhigherforeigncurrency
transactionlossesin2014,asbothperiodsincludedgainsonthesaleofnon-coreassets.
15 KIMBERLY-CLARKCORPORATION - 2015 Annual Report