Kimberly-Clark 2015 Annual Report Download - page 5

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usearesoldthroughdistributorsanddirectlytomanufacturing,lodging,officebuilding,foodservice,andhighvolumepublicfacilities.
NetsalestoWal-MartStores,Inc.wereapproximately14percentin2015,andapproximately13percentin2014and2013,ofourtotalnetsales.
Patents and Trademarks
We own various patents and trademarks registered domestically and in many foreign countries. We consider the patents and trademarks that we own and the
trademarksunder whichwesell certainofour productstobe materialtoour business.Consequently,we seekpatentand trademarkprotectionbyallavailable
means,includingregistration.
Raw Materials
Cellulosefiber,intheformofkraftpulporfiberrecycledfromrecoveredwastepaper,istheprimaryrawmaterialforourtissueproductsandintheformoffluff
pulpisacomponentofdisposablediapers,trainingandyouthpants,femininepadsandincontinencecareproducts.
Polypropylene and other synthetics and chemicals are the primary raw materials for manufacturing nonwoven fabrics, which are used in disposable diapers,
training and youth pants, wet wipes, feminine pads, incontinence products, and away-from-home wipers and apparel. Superabsorbent materials are important
componentsofdisposablediapers,trainingandyouthpantsandincontinencecareproducts.
Rawmaterialsarepurchasedfromthirdparties,andweconsiderthesupplytobeadequatetomeettheneedsofourbusinesses.SeeItem1A,"RiskFactors."
Competition
We have several major competitors in most of our markets, some of which are larger and more diversified than us. The principal methods and elements of
competitionincludebrandrecognitionandloyalty,productinnovation,qualityandperformance,price,andmarketinganddistributioncapabilities.Foradditional
discussionofthecompetitiveenvironmentinwhichweconductourbusiness,seeItem1A,"RiskFactors."
Research and Development
Researchanddevelopmentexpendituresaredirectedtowardneworimprovedpersonalcare,tissue,wiping,safetyandnonwovenmaterials.Consolidatedresearch
anddevelopmentexpensewas$324in2015,$368in2014and$333in2013.
Foreign Market Risks
Weoperateandmarket ourproductsglobally,and ourbusinessstrategyincludestargeted growthinAsia,LatinAmerica, EasternEurope,theMiddle Eastand
Africa,witha particularemphasisinChina, EasternEuropeandLatinAmerica.SeeItem 1A,"RiskFactors"fora discussionofforeignmarketrisksthatmay
affectourfinancialresults.
Environmental Matters
Totalworldwidecapitalexpendituresforvoluntaryenvironmentalcontrolsorcontrolsnecessarytocomplywithlegalrequirementsrelatingtotheprotectionofthe
environmentatourfacilitiesareexpectedtobeasfollows:
2016
2017
FacilitiesinU.S. $ 6
$ 4
FacilitiesoutsideU.S. 45
27
Total $ 51
$ 31
2 KIMBERLY-CLARKCORPORATION - 2015 Annual Report