2018 Global Restructuring Program

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities Disclosure

2018 Global Restructuring Program

In 2018, we initiated our 2018 Global Restructuring Program to reduce our structural cost base by streamlining and simplifying our manufacturing supply chain and overhead organization. The restructuring actions were completed in 2021. We closed or sold 11 manufacturing facilities and expanded production capacity at several others. We exited or divested some lower-margin businesses that generated approximately 1 percent of our net sales. Workforce reductions were approximately 6,000. The restructuring impacted all of our business segments and our organizations in all major geographies.

The restructuring actions were completed with total costs of $2.2 billion pre-tax ($1.6 billion after tax). Pre-tax cash and non-cash costs of $1.2 billion and $1.0 billion, respectively, were incurred.

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


	Year Ended December 31
	2021		2020		2019		2018		Total
Cost of products sold:
Charges for workforce reductions	$	4	$	10	$	31	$	149	$	194
Asset impairments	3		17		—		74		94
Asset write-offs	17		63		54		112		246
Incremental depreciation	18		94		235		172		519
Other exit costs	112		99		96		34		341
Total	154		283		416		541		1,394
Marketing, research and general expenses:
Charges for workforce reductions	39		13		(12)		243		283
Other exit costs	72		96		111		137		416
Total	111		109		99		380		699
Other (income) and expense, net(a)	10		(9)		(194)		(12)		(205)
Nonoperating expense(b)	79		36		45		127		287
Total charges	354		419		366		1,036		2,175
Provision for income taxes	(75)		(94)		(118)		(243)		(530)
Net charges	279		325		248		793		1,645
Net impact related to equity companies and noncontrolling interests	2		(2)		—		(10)		(10)
Net charges attributable to Kimberly-Clark Corporation	$	281	$	323	$	248	$	783	$	1,635

(a)Other (income) and expense, net in 2019 was the result of pre-tax gains on the sales of manufacturing facilities and associated real estate which were disposed of as part of the restructuring.

(b)Represents non-cash pension settlement and curtailment charges resulting from restructuring actions, primarily in the U.S., United Kingdom and Canada.

The measurement of the asset impairment charges was based on the excess of the carrying values of the impacted asset groups over their fair values. These fair values were measured by using discounted cash flows expected over the limited time the assets would remain in use or the expected sales value, and as a result, the assets were essentially written off or written down to fair value less costs to sell. The use of discounted cash flows represents a level 3 measure under the fair value hierarchy.

The following summarizes the restructuring liabilities activity:


	2021
Restructuring liabilities at January 1	$	93
Charges for workforce reductions and other cash exit costs	222
Cash payments	(235)
Currency and other	(2)
Restructuring liabilities at December 31	$	78

As of December 31, 2022, remaining restructuring liabilities were not material. As of December 31, 2021, restructuring liabilities of $75 were recorded in Accrued expenses and other current liabilities and $3 were recorded in Other Liabilities. The impact related to restructuring charges was recorded in Operating working capital and Other Operating Activities, as appropriate, in our consolidated cash flow statement. Cash payments of $249, $302 and $325 were made during 2020, 2019 and 2018, respectively.