Kimberly-Clark 2010 Annual Report Download - page 5

PART I
ITEM 1. BUSINESS
Kimberly-Clark Corporation was incorporated in Delaware in 1928. We are a global company focused on
leading the world in essentials for a better life through product innovation and building our personal care,
consumer tissue, K-C Professional & Other and health care brands. We are principally engaged in the
manufacturing and marketing of a wide range of essential products to improve people’s lives around the world.
Most of these products are made from natural or synthetic fibers using advanced technologies in fibers,
nonwovens and absorbency. Unless the context indicates otherwise, the terms “Corporation,” “Kimberly-Clark,”
“K-C,” “we,” “our” and “us” refer to Kimberly-Clark Corporation and its consolidated subsidiaries.
For financial information by business segment and geographic area, and information about our principal
products and markets, see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” (MD&A) and Item 8, Note 20 to the Consolidated Financial Statements.
Recent Developments
Effective January 1, 2010, our Venezuelan subsidiary (“K-C Venezuela”) began accounting for its
operations as highly inflationary. As a result, we remeasured K-C Venezuela’s bolivar-denominated net monetary
asset position using a parallel exchange rate of approximately 6 bolivars per U.S. dollar and recorded an after-tax
charge of $96 million in the first quarter of 2010. For additional information, see MD&A and Item 8, Note 4 to
the Consolidated Financial Statements.
On January 21, 2011, we initiated a pulp and tissue restructuring plan in order to exit our remaining
integrated pulp manufacturing operations and improve the underlying profitability and return on invested capital
of our consumer tissue and K-C Professional businesses. The restructuring is expected to be completed by the
end of 2012 and will involve the streamlining, sale or closure of 5 to 6 of our manufacturing facilities around the
world. In conjunction with these actions, we will be exiting certain non-strategic products, primarily non-branded
offerings, and transferring some production to lower-cost facilities in order to improve overall profitability and
returns. For additional information, see MD&A and Item 8, Note 19 to the Consolidated Financial Statements.
During 2010, we repurchased approximately 12.8 million shares of our common stock at a cost of about
$800 million. We expect to repurchase $1.5 billion of our common stock in 2011, subject to market conditions.
For additional information see Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities” and MD&A.
Description of Kimberly-Clark
We are organized into operating segments based on product groupings. These operating segments have been
aggregated into four reportable global business segments. Information on these four segments, as well as their
principal sources of revenue, is included below.
•Personal Care, which manufactures and markets disposable diapers, training and youth pants,
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.
•Consumer Tissue, which 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.
•K-C Professional & Other, which 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, Kimcare
and Jackson brand names.
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