Description of Business Segments

12 Months Ended

Dec. 31, 2013

Description of Business Segments

Description of Business Segments

Business Segment Information

We are organized into operating segments based on product groupings. These operating segments have been aggregated into four reportable global business segments: Personal Care, Consumer Tissue, KCP and Health Care. The reportable segments were determined in accordance with how our executive managers develop and execute global strategies to drive growth and profitability. 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 and income and expense not associated with the business segments, including the charges related to the European strategic changes and the pulp and tissue restructuring actions described in Notes 3 and 4, respectively.

The principal sources of revenue in each global business segment are described below:

• Personal Care brands offer parents a trusted partner in caring for their families and deliver confidence, protection and discretion to adults through a wide variety of innovative solutions and products such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products. Products in this segment are sold under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise and other brand names.

• Consumer Tissue offers a wide variety of innovative solutions and trusted brands that touch and improve people's lives every day.  Products in this segment include facial and bathroom tissue, paper towels, napkins and related products, and are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve and other brand names.

• K-C Professional helps transform workplaces for employees and patrons, making them healthier, safer and more productive, through a range of solutions and supporting products such as apparel, wipers, soaps, sanitizers, tissue and towels.  Key brands in this segment include Kleenex, Scott, WypAll, Kimtech and JacksonSafety. 

• Health Care provides essentials that help restore patients to better health and improve the quality of patients' lives. This segment offers surgical and infection prevention products for the operating room, and a portfolio of innovative medical devices focused on pain management, respiratory and digestive health. This business is a global leader in education to prevent healthcare-associated infections. Products are sold primarily under the Kimberly-Clark and ON-Q brand names. As described in Note 2, our Board of Directors has authorized management to pursue a potential tax-free spin-off of our health care business, with a current target to complete the spin-off by the end of the third quarter of 2014.

Net sales to Wal-Mart Stores, Inc. were approximately 12 percent in 2013, 2012 and 2011.

Information concerning consolidated operations by business segment is presented in the following tables:

Consolidated Operations by Business Segment

	Personal Care		Consumer Tissue		K-C Professional		Health Care		Corporate & Other				Consolidated Total
Net Sales(a)
2013	$	9,536	$	6,637	$	3,323	$	1,618	$	38			$	21,152
2012	9,576		6,527		3,283		1,622		55				21,063
2011	9,128		6,770		3,294		1,606		48				20,846
Operating Profit(b)
2013	1,698		988		608		230		(316		)	(c)	3,208
2012	1,660		887		545		229		(635		)	(c)	2,686
2011	1,526		775		487		219		(565		)	(c)	2,442
Depreciation and Amortization
2013	332		318		138		71		4				863
2012	315		331		141		59		11				857
2011	296		541		187		55		12				1,091
Assets
2013	6,623		5,483		2,431		2,370		2,012				18,919
2012	7,014		5,531		2,739		2,531		2,058				19,873
2011	6,582		5,685		2,783		2,529		1,794				19,373
Capital Spending
2013	461		328		118		44		2				953
2012	551		352		116		42		32				1,093
2011	543		255		114		53		3				968

(a) Net sales in the United States to third parties totaled $9,783, $9,720 and $9,715 in 2013, 2012 and 2011, respectively.

(b) Segment operating profit excludes other (income) and expense, net and income and expenses not associated with the business segments.

(c) Corporate & Other includes the following charges:

	Year Ended December 31
	2013		2012						2011
	European Strategic Changes		European Strategic Changes		Pulp and Tissue Restructuring Actions		Total		Pulp and Tissue Restructuring Actions
Personal Care	$	36	$	213	$	—	$	213	$	—
Consumer Tissue	27		66		125		191		357
K-C Professional	13		20		9		29		56
Other (income) and expense, net	5		—		1		1		2
Total	$	81	$	299	$	135	$	434	$	415

In addition, Corporate and Other for the year ended December 31, 2013 includes a pre-tax charge of $36 related to the devaluation of the Venezuelan bolivar and for the year ended December 31, 2011 includes a non-deductible business tax charge of $32 related to a law change in Colombia.

Sales of Principal Products

(Billions of dollars)	2013		2012		2011
Consumer tissue products	$	6.6	$	6.5	$	6.7
Baby and child care products	7.0		7.1		6.8
Away-from-home professional products	3.3		3.3		3.3
All other	4.3		4.2		4.0
Consolidated	$	21.2	$	21.1	$	20.8