Kimberly-Clark 2015 Annual Report Download - page 9

Disruption in our supply chain or the failure of third-party providers to satisfactorily perform could adversely impact our operations .
Ourabilitytomanufacture,distributeandsellproductsiscriticaltoouroperations.Theseactivitiesaresubjecttoinherentriskssuchasnaturaldisasters,power
outages,firesorexplosions,laborstrikes,terrorism,pandemics,importrestrictions,regionaleconomic,business,environmentalorpoliticalevents,governmental
regulatoryrequirementsornongovernmentalvoluntaryactionsinresponsetoglobalclimatechangeorotherconcernsregardingthesustainabilityofourbusiness,
whichcouldimpairourabilitytomanufactureorsellourproducts.Thisinterruption,ifnotmitigatedinadvanceorotherwiseeffectivelymanaged,couldadversely
impactourbusiness,financialconditionandresultsofoperations,aswellasrequireadditionalresourcestoaddress.
Inaddition,thirdpartiesmanufacturesomeofourproductsandprovidecertainadministrativeservices.Disruptionsordelaysatthesethird-partymanufacturersor
serviceprovidersduetothereasonsaboveorthefailureofthesemanufacturersorserviceproviderstootherwisesatisfactorilyperform,couldadverselyimpactour
operations,sales,paymentstoourvendors,employees,andothers,andourabilitytoreportfinancialandmanagementinformationonatimelyandaccuratebasis.
There is no guarantee that our ongoing efforts to reduce costs will be successful.
We continue to implement plans to improve our competitive position by achieving cost reductions in our operations, including implementing restructuring
programs in functions or areas of our business where we believe such opportunities exist. In addition, we expect ongoing cost savings from our continuous
improvement activities. We anticipate these cost savings will result from reducing material costs and manufacturing waste and realizing productivity gains,
distributionefficienciesandoverheadreductionsineachofourbusinesssegmentsandinourcorporatefunctions.Anynegativeimpacttheseplanshaveonour
relationshipswithemployeesorcustomersoranyfailuretogeneratetheanticipatedefficienciesandsavingscouldadverselyaffectourfinancialresults.
If our information technology systems suffer interruptions, failures or breaches, our business operations could be disrupted and we could face financial and
reputational damage.
Our information technology systems, some of whichare dependent on services provided bythird parties, serve an important role in theefficient and effective
operationandadministrationofourbusiness.Thesesystemscouldbedamagedorceasetofunctionproperlyduetoanynumberofcauses,suchascatastrophic
events,poweroutages,securitybreaches,computervirusesorcyber-basedattacks.Whilewehavecontingencyplansinplacetopreventormitigatetheimpactof
theseevents,iftheyweretooccurandourdisasterrecoveryplansdonoteffectivelyaddresstheissuesonatimelybasis,wecouldsufferinterruptionsinourability
tomanageouroperations,whichmayadverselyaffectourbusinessandfinancialresults.
Increasedcyber-securitythreatsandcomputercrimealsoposeapotentialrisktothesecurityofourinformationtechnologysystems,includingthoseofthirdparty
serviceproviderswithwhomwehavecontracted,aswellastheconfidentiality,integrityandavailabilityofthedatastoredonthosesystems.Anybreachinour
informationtechnologysecuritysystemscouldresultinthedisclosureormisuseofconfidentialorproprietaryinformation,includingsensitivecustomer,vendor,
employee or investor information maintained in the ordinary course of our business. Any such event could cause damage to our reputation, loss of valuable
information or loss of revenue and could result in large expenditures to investigate or remediate, to recover data, to repair or replace networks or information
systems,ortoprotectagainstsimilarfutureevents.
We may divest or acquire product lines or businesses, which could impact our results.
Weperiodicallydivestproductlinesorbusinesses.Thesedivestituresmayadverselyimpactourresultsifweareunabletooffsetthedilutiveimpactsfromtheloss
ofrevenueassociatedwiththedivestedproductsorbusinesses,mitigateoverheadcostsallocatedtothosebusinesses,orotherwiseachievetheanticipatedbenefits
orcostsavingsfromthedivestitures.Furthermore,thedivestiturescouldadverselyaffectourongoingbusinessoperations,includingbyenhancingourcompetitors'
positionsorreducingconsumerconfidenceinourongoingbrandsandproducts.
Wemaypursueacquisitionsofproductlinesorbusinessesfromthirdparties.Acquisitionsinvolvenumerousrisks,includingdifficultiesintheassimilationofthe
operations,technologies,servicesandproductsoftheacquiredproductlinesorbusinesses,estimationandassumptionofliabilitiesandcontingencies,personnel
turnover and the diversion of management's attention from other business concerns. We may be unable to successfully integrate and manage product lines or
businessesthatwemayacquireinthefuture,orbeunabletoachieveanticipatedbenefitsorcostsavingsfromacquisitionsinthetimeframeweanticipate,oratall.
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6 KIMBERLY-CLARKCORPORATION - 2015 Annual Report