Kimberly-Clark 2010 Annual Report Download - page 11

PART I
(Continued)
In addition, we face increased risks in our international operations, including currency restrictions, adverse
political and economic conditions, legal and regulatory constraints, tariffs and other trade barriers, risks of
expropriation, difficulties in enforcing contractual and intellectual property rights, and potentially adverse tax
consequences. Each of these factors could adversely affect our financial results. See MD&A and Item 8, Note 4
to the Consolidated Financial Statements, for information about the effects of currency restrictions, currency
devaluation and inflation in Venezuela on our financial results in 2010.
In addition, intense competition in European personal care and tissue markets, and the challenging
economic, political and competitive environments in Latin America, Eastern Europe, Africa and Asia may slow
our sales growth and earnings potential. Our success internationally also depends on our ability to acquire or
form successful business alliances, and there is no guarantee that we will be able to acquire or form these
alliances. In addition, there can be no assurance that our products will be accepted in any particular market.
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. In addition, we expect ongoing cost savings from our continuous improvement activities. We
anticipate these continuing 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.
See MD&A. If we cannot successfully implement our cost savings plans, we may not realize all anticipated
benefits. 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.
Damage to the reputation of Kimberly-Clark or to one or more of our brands could adversely affect our business.
Developing and maintaining our reputation, as well as the reputation of our brands, is a critical factor in our
relationship with consumers, customers, suppliers and others. Our inability to address adverse publicity or other
issues, including concerns about product safety, quality, efficacy or similar matters, real or perceived, could
negatively impact sentiments towards us and our products, and our business and financial results could suffer.
Our business and results could also be negatively impacted by the effects of a significant product recall, product-
related litigation, allegations of product tampering or contamination or the distribution and sale of counterfeit
products.
Our sales may not occur as estimated.
There is no guarantee that we will be able to anticipate consumer preferences, estimate sales of new
products, estimate changes in population characteristics and the acceptance of our products in new markets or
anticipate changes in technology and competitive responses. As a result, we may not be able to achieve
anticipated sales.
Pending litigation, administrative actions, tax matters, regulatory requirements and new legal requirements
could have an adverse effect.
There is no guarantee that we will be successful in defending against legal and administrative actions or in
asserting our rights under various laws, including intellectual property laws. In addition, we could incur
substantial costs in defending against or in asserting our rights in these actions.
We are subject to income tax requirements in various jurisdictions in the United States and internationally.
Increases in applicable tax rates, changes in applicable tax laws and actions by tax authorities in jurisdictions in
which we operate could reduce our after-tax income and have an adverse effect on our results of operations.
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