Kimberly-Clark 2010 Annual Report Download - page 13

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PART I
(Continued)
information on a timely and accurate basis. Administrative functions transferred to third-party service providers
include certain information technology, finance and accounting, sourcing and supply management, and human
resources services. Although moving these administrative functions to third-party service providers has improved
certain capabilities and lowered our cost of operations, we could experience disruptions in the quality and
timeliness of the services.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We own or lease:
• our principal executive offices, located in the Dallas, Texas metropolitan area;
• five operating segment and geographic headquarters at two U.S. and three international locations; and
• four administrative centers at two U.S. and two international locations.
The locations of our and our equity affiliates’ principal production facilities by major geographic areas of
the world are as follows:
Geographic Area:
Number of
Facilities
United States (in 20 states) ............................................................ 27
Canada ........................................................................... 1
Europe ............................................................................ 20
Asia, Latin America and Other ......................................................... 64
Worldwide Total (in 39 countries) ...................................................... 112
Many of these facilities produce multiple products. The types of products produced by these facilities are as
follows:
Products Produced:
Number of
Facilities
Tissue, including consumer tissue and K-C Professional & Other products ...................... 69
Personal Care ...................................................................... 51
Health Care ........................................................................ 15
Management believes that our and our equity affiliates’ facilities are suitable for their purpose, adequate to
support their businesses and well maintained. On January 21, 2011, we initiated a pulp and tissue restructuring
plan, which will involve the streamlining, sale or closure of 5 to 6 of our manufacturing facilities around the
world. See “Recent Developments”.
ITEM 3. LEGAL PROCEEDINGS
We are subject to various lawsuits and claims pertaining to issues such as contract disputes, product
liability, patents and trademarks, advertising, employee and other matters. Although the results of litigation and
claims cannot be predicted with certainty, we believe that the ultimate disposition of these matters, to the extent
not previously provided for, will not have a material adverse effect, individually or in the aggregate, on our
business, financial condition, results of operations or liquidity.
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