Description of Business Segments

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

We are organized into operating segments based on product groupings. These operating segments have been aggregated into three reportable global business segments: Personal Care, Consumer Tissue and KCP. The reportable segments were determined in accordance with how our chief operating decision maker and 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.

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

• Personal Care brands offer our consumers a trusted partner in caring for themselves and their families by delivering confidence, protection and discretion 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 partners with businesses to create Exceptional Workplaces, helping to make them healthier, safer and more productive through a range of solutions and supporting products such as wipers, tissue, towels, apparel, soaps and sanitizers. Our brands, including Kleenex, Scott, WypAll, Kimtech and Jackson Safety, are well-known for quality and trusted to help people around the world work better.

Net sales to Walmart Inc. as a percent of our consolidated net sales were approximately 14 percent in 2017, 2016 and 2015.

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

Consolidated Operations by Business Segment

	Year Ended December 31
	2017			2016			2015
NET SALES(a)
Personal Care	$	9,078		$	9,046		$	9,204
Consumer Tissue	5,932			5,967			6,121
K-C Professional	3,208			3,150			3,219
Corporate & Other	41			39			47
TOTAL NET SALES	$	18,259		$	18,202		$	18,591
OPERATING PROFIT(b)
Personal Care	$	1,907		$	1,857		$	1,885
Consumer Tissue	1,034			1,117			1,073
K-C Professional	633			603			590
Corporate & Other(c)	(248		)	(252		)	(367		)
Other (income) and expense, net(d)	27			8			1,568
TOTAL OPERATING PROFIT	$	3,299		$	3,317		$	1,613

(a) Net sales in the U.S. to third parties totaled $8,698, $8,874 and $8,819 in 2017, 2016 and 2015, respectively. No other individual country's net sales exceeds 10 percent of total net sales.

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

(c) Corporate & Other includes charges related to the 2014 Organization Restructuring of $38and$63 in 2016 and 2015, respectively, and $5 related to the remeasurement of the Venezuelan balance sheet in 2015. Corporate & Other also includes charges of $23 for restructuring in Turkey in 2015.

(d) Other (income) and expense, net for 2017 includes a charge of $24 for the early redemption of debt, 2016 and 2015 includes income of $11 and a charge of $108, respectively, related to the deconsolidation of our Venezuelan operations, and 2015 includes charges of $40 related to the remeasurement of the Venezuelan balance sheet. In addition, 2015 includes $1,358 for charges related to pension settlements.

	Personal Care		Consumer Tissue		K-C Professional		Corporate & Other		Total
Depreciation and Amortization
2017	$	324	$	283	$	112	$	5	$	724
2016	305		280		116		4		705
2015	340		282		121		3		746
Capital Spending
2017	405		281		92		7		785
2016	421		250		95		5		771
2015	590		344		116		6		1,056
Goodwill(a)
2017	617		559		400		—		1,576
2016	549		538		393		—		1,480
2015	533		524		389		—		1,446
Assets
2017	6,592		5,007		2,255		1,297		15,151
2016	6,141		4,761		2,151		1,549		14,602
2015	6,330		5,050		2,264		1,198		14,842

(a) In 2017, we acquired the remaining 50 percent of our joint venture in India, which resulted in the recognition of $35 of personal care goodwill. All other changes in goodwill are related to currency.

Sales of Principal Products

(Billions of dollars)	2017		2016		2015
Consumer tissue products	$	5.9	$	6.0	$	6.1
Baby and child care products	6.3		6.4		6.6
Away-from-home professional products	3.2		3.1		3.2
All other	2.9		2.7		2.7
Consolidated	$	18.3	$	18.2	$	18.6