European Strategic Changes (European Strategic Changes [Member])

6 Months Ended

Jun. 30, 2014

European Strategic Changes [Member]

In 2012, we initiated strategic changes related to our Western and Central European consumer and professional businesses to focus our resources and investments on stronger market positions and growth opportunities. We have exited the diaper category in that region, with the exception of the Italian market, and divested or exited some lower-margin businesses, mostly in consumer tissue, in certain markets. The changes primarily affect our consumer businesses, with a modest impact on K-C Professional ("KCP"). The restructuring actions commenced in 2012 and are expected to be completed by December 31, 2014.

Restructuring actions related to the strategic changes involved the sale or closure of five of our European manufacturing facilities and the streamlining of our administrative organization.

The following charges were incurred in connection with the European strategic changes:



	Three Months Ended June 30						Six Months Ended June 30
	2014			2013			2014			2013
Charges for workforce reductions	$	(2	)	$	1		$	(2	)	$	27
Asset write-offs	—			6			—			12
Incremental depreciation	—			6			—			15
Benefit from pension curtailment	—			(3		)	—			(29		)
Other exit costs	4			8			10			13
Cost of products sold	2			18			8			38
Charges for workforce reductions and other exit costs included in marketing, research and general expenses	—			4			4			15
Provision for income taxes	2			(1		)	(3		)	(11		)
Net charges	$	4		$	21		$	9		$	42

See Note 9 for charges related to the European strategic changes by segment.

Through June 30, 2014, cumulative pre-tax charges for the strategic changes were $392 ($317 after tax), including cumulative pre-tax cash charges of $215.

The following summarizes the cash charges recorded and reconciles these charges to accrued expenses:



	2014			2013
Accrued expenses - January 1	$	37		$	133
Charges for workforce reductions and other exit costs	12			55
Cash payments	(25		)	(90		)
Currency and other	(1		)	(10		)
Accrued expenses - June 30	$	23		$	88

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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