2018 Global Restructuring Program

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities Disclosure

2018 Global Restructuring Program

In January 2018, we announced the 2018 Global Restructuring Program to reduce our structural cost base by streamlining and simplifying our manufacturing supply chain and overhead organization. We expect to close or sell approximately 10 manufacturing facilities and expand production capacity at several others. We expect to exit or divest some lower-margin businesses that generate approximately 1 percent of our net sales. The restructuring is expected to impact our organizations in all major geographies. Workforce reductions are expected to be in the range of 6,300 to 6,400.

The restructuring is expected to be completed in 2021, with total costs anticipated to be in the range of $2.0 billion to $2.1 billion pre-tax ($1.5 billion to $1.6 billion after tax). Cash costs are expected to be $1.1 billion to $1.15 billion, primarily related to workforce reductions. Non-cash charges are expected to be $900 to $950 pre-tax and will primarily consist of incremental depreciation, asset write-offs and pension settlement and curtailment charges. Restructuring charges in 2021 are expected to be $180 to $280 pre-tax ($135 to $215 after tax).

The following net charges were incurred in connection with the 2018 Global Restructuring Program:


	Three Months Ended March 31
	2021		2020
Cost of products sold:
Charges (adjustments) for workforce reductions	$	(2)	$	—
Asset impairments	3		—
Asset write-offs	1		6
Incremental depreciation	4		35
Other exit costs	19		29
Total	25		70
Marketing, research and general expenses:
Charges (adjustments) for workforce reductions	(2)		(3)
Other exit costs	11		26
Total	9		23
Other (income) and expense, net	—		—

Total charges	34		93
Provision for income taxes	(7)		(18)
Net charges	27		75
Net impact related to equity companies and noncontrolling interests	(1)		(1)
Net charges attributable to Kimberly-Clark Corporation	$	26	$	74

The following summarizes the restructuring liabilities activity:


	2021		2020
Restructuring liabilities at January 1	$	93	$	132
Charges for workforce reductions and other cash exit costs	26		50
Cash payments	(50)		(64)
Currency and other	(4)		(7)
Restructuring liabilities at March 31	$	65	$	111

Restructuring liabilities of $50 and $77 are recorded in Accrued expenses and other current liabilities and $15 and $34 are recorded in Other Liabilities as of March 31, 2021 and 2020, respectively. The impact related to restructuring charges is recorded in Operating working capital and Other Operating Activities, as appropriate, in our consolidated cash flow statements.

Through March 31, 2021, cumulative pre-tax charges for the 2018 Global Restructuring Program were $1.9 billion ($1.4 billion after tax)