Kimberly-Clark 2010 Annual Report Download - page 36

PART II
(Continued)
The restructuring plan will commence in the first quarter of 2011 and is expected to be completed by
December 31, 2012. The restructuring is expected to result in cumulative charges of approximately $400 million
to $600 million before tax ($280 million to $420 million after tax) over that period. We anticipate that the
charges will fall into the following categories and approximate dollar ranges: workforce reduction costs
($50 million to $100 million); incremental depreciation ($300 million to $400 million); and other associated
costs ($50 million to $100 million). Cash costs related to the streamlining of operations, sale or closure,
relocation of equipment, severance and other expenses are expected to account for approximately 25 percent to
50 percent of the charges. Noncash charges will consist primarily of incremental depreciation.
As a result of the restructuring, we expect that by 2013 annual net sales will be reduced by $250 million to
$300 million and operating profit will increase by at least $75 million. Most of the restructuring will impact the
consumer tissue business segment.
2011 Operating Results
We expect the economic environment to continue to be difficult in 2011. We intend to continue to focus on
leveraging our strong brands, bringing innovations to market and pursuing targeted growth initiatives, while
reducing costs and maximizing cash flow. We believe that the benefits of sales growth and cost savings will be
partially offset by charges related to the restructuring plan described above, inflation in key cost inputs, planned
increases in marketing spending, and increased interest expense. We expect to continue our program of share
repurchases in 2011, and we have increased the amount of our regular quarterly dividend for 2011.
Forward-Looking Statements
Certain matters discussed in this Form 10-K or related documents, a portion of which are incorporated
herein by reference, concerning, among other things, business outlook, including anticipated costs, scope, timing
and effects of the pulp and tissue restructuring plan, raw material and energy costs, market demand and economic
conditions, anticipated currency rates and exchange risk, anticipated effect of acquisitions, cost savings, changes
in finished product selling prices, cash flow and uses of cash, capital spending, marketing, research and
innovation spending, anticipated financial and operating results, contingencies and anticipated transactions,
constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995
and are based upon our expectations and beliefs concerning future events affecting us. There can be no assurance
that these events will occur or that our results will be as estimated.
The assumptions used as a basis for the forward-looking statements include many estimates that, among
other things, depend on the achievement of future cost savings and projected volume increases. In addition, many
factors outside our control, including the prices and availability of our raw materials, potential competitive
pressures on selling prices or advertising and promotion expenses for our products, energy costs, and fluctuations
in foreign currency exchange rates, as well as general economic conditions in the markets in which we do
business, could affect the realization of such estimates.
The factors described under Item 1A, “Risk Factors” in this Form 10-K, or in our other SEC filings, among
others, could cause our future results to differ from those expressed in any forward-looking statements made by
or on our behalf. Other factors not presently known to us or that we presently consider immaterial could also
affect our business operations and financial results.
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