Description Of Business Segments

9 Months Ended

Sep. 30, 2014

Description of Business Segments

Description Of Business Segments

Description of Business Segments

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. Costs associated with the spin-off of the health care business and related matters are included in Corporate & Other.

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.

The following schedules present information concerning consolidated operations by business segment:

	Three Months Ended September 30								Nine Months Ended September 30
	2014			2013			Change		2014			2013			Change
NET SALES
Personal Care	$	2,475		$	2,383		+3.9	%	$	7,299		$	7,170		+1.8	%
Consumer Tissue	1,697			1,626			+4.4	%	5,024			4,969			+1.1	%
K-C Professional	873			843			+3.6	%	2,531			2,477			+2.2	%
Health Care	392			403			-2.7	%	1,186			1,201			-1.2	%
Corporate & Other	5			7			N.M.		23			30			N.M.
TOTAL NET SALES	$	5,442		$	5,262		+3.4	%	$	16,063		$	15,847		+1.4	%
OPERATING PROFIT
Personal Care	$	483		$	427		+13.1	%	$	1,393		$	1,300		+7.2	%
Consumer Tissue	285			233			+22.3	%	782			713			+9.7	%
K-C Professional	165			155			+6.5	%	455			459			-0.9	%
Health Care	52			70			-25.7	%	187			168			+11.3	%
Corporate & Other(a)	(95		)	(70		)	N.M.		(296		)	(242		)	N.M.
Other (income) and expense, net	(17		)	8			N.M.		27			12			+125.0	%
TOTAL OPERATING PROFIT	$	907		$	807		+12.4	%	$	2,494		$	2,386		+4.5	%

N.M. - Not Meaningful

(a) Corporate & Other includes charges related to the health care spin-off and European strategic changes. See Notes 2 and 4.