Kimberly-Clark 2008 Annual Report Download - page 22

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PART I
(Continued)
The Consumer Tissue segment manufactures and markets facial and bathroom tissue, paper towels, napkins
and related products for household use. Products in this segment are sold under the Kleenex, Scott, Cottonelle,
Viva, Andrex, Scottex, Hakle, Page and other brand names.
The K-C Professional & Other segment manufactures and markets facial and bathroom tissue, paper towels,
napkins, wipers and a range of safety products for the away-from-home marketplace. Products in this segment
are sold under the Kimberly-Clark, Kleenex, Scott, WypAll, Kimtech, KleenGuard and Kimcare brand names.
The Health Care segment manufactures and markets disposable health care products such as surgical gowns,
drapes, infection control products, sterilization wrap, face masks, exam gloves, respiratory products and other
disposable medical products. Products in this segment are sold under the Kimberly-Clark, Ballard and other
brand names.
Products for household use are sold directly, and through wholesalers, to supermarkets, mass merchandisers,
drugstores, warehouse clubs, variety and department stores and other retail outlets. Products for away-from-home
use are sold through distributors and directly to manufacturing, lodging, office building, food service, health care
establishments and high volume public facilities. In addition, certain products are sold to converters.
Net sales to Wal-Mart Stores, Inc. were approximately 14 percent in 2008 and 2007, and approximately
13 percent in 2006.
Patents and Trademarks
The Corporation owns various patents and trademarks registered domestically and in many foreign
countries. The Corporation considers the patents and trademarks which it owns and the trademarks under which it
sells certain of its products to be material to its business. Consequently, the Corporation seeks 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 the Corporation’s tissue products and is a component in disposable diapers, training pants, feminine
pads and incontinence care products.
Superabsorbent materials are important components in disposable diapers, training and youth pants 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 and health care products, and away-from-home wipers.
Most recovered paper, synthetics, pulp and recycled fiber are purchased from third parties. The Corporation
considers the supply of these raw materials to be adequate to meet the needs of its businesses. See Item 1A, “Risk
Factors.”
Competition
The Corporation has several major competitors in most of its markets, some of which are larger and more
diversified than the Corporation. 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 the Corporation conducts its business, see
Item 1A, “Risk Factors.”
2