Kimberly-Clark 2008 Annual Report Download - page 98

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 18. Business Segment and Geographic Data Information
The Corporation is organized into operating segments based on product groupings. These operating
segments have been aggregated into four reportable global business segments: Personal Care; Consumer Tissue;
K-C Professional & Other; and Health Care. The reportable segments were determined in accordance with how
the Corporation’s executive managers develop and execute the Corporation’s global strategies to drive growth
and profitability of the Corporation’s worldwide Personal Care, Consumer Tissue, K-C Professional & Other and
Health Care operations. These strategies include global plans for branding and product positioning, technology,
research and development programs, cost reductions including supply chain management, and capacity and
capital investments for each of these businesses. Segment management is evaluated on several factors, including
operating profit. Segment operating profit excludes other income and (expense), net; income and expense not
associated with the business segments; and the costs of corporate decisions related to the strategic cost reductions
described in Note 4. Corporate & Other Assets include the Corporation’s investments in equity affiliates, finance
operations and real estate entities, and deferred tax assets. The accounting policies of the reportable segments are
the same as those described in Note 1.
The principal sources of revenue in each global business segment are described below:
• The Personal Care segment manufactures and markets disposable diapers, training and youth pants and
swimpants; baby wipes; feminine and incontinence care products; and related products. Products in this
segment are primarily for household use and are sold under a variety of brand names, including
Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, Poise and other brand
names.
• 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.
Net sales to Wal-Mart Stores, Inc. were approximately 14 percent in 2008 and 2007, and approximately
13 percent in 2006, primarily in the personal care and consumer tissue businesses.
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