Description Of Business Segments

6 Months Ended

Jun. 30, 2011

Description Of Business Segments

Description Of Business Segments

Note 10. 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, K-C Professional & Other, 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, including the charges related to the pulp and tissue restructuring described in Note 3.

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

• The Personal Care segment manufactures and markets disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and related products. Products in this segment are primarily for household use and are sold under a variety of brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, Poise and other brand names.

• The Consumer Tissue segment manufactures and markets facial and bathroom tissue, paper towels, napkins and related products for household use. Products in this segment are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle, Page and other brand names.

• The K-C Professional & Other segment manufactures and markets facial and bathroom tissue, paper towels, napkins, wipers and a range of safety products for the away-from-home marketplace. Products in this segment are sold under the Kimberly-Clark, Kleenex, Scott, WypAll, Kimtech, KleenGuard, Kimcare and Jackson brand names.

• The Health Care segment manufactures and markets health care products such as surgical drapes and gowns, infection control products, face masks, exam gloves, respiratory products, pain management products primarily sold through I-Flow, and other disposable medical products. Products in this segment are sold under the Kimberly-Clark, Ballard, ON-Q and other brand names.

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

	Three Months Ended June  30						Six Months Ended June  30
(Millions of dollars)	2011			2010			2011			2010
NET SALES:
Personal Care	$	2,341		$	2,181		$	4,528		$	4,318
Consumer Tissue		1,669			1,529			3,343			3,135
K-C Professional & Other		846			801			1,614			1,531
Health Care		391			344			779			711
Corporate & Other		12			2			24			(3	)
Consolidated	$	5,259		$	4,857		$	10,288		$	9,692
OPERATING PROFIT (reconciled to income before income taxes):
Personal Care	$	400		$	443		$	789		$	915
Consumer Tissue		173			151			323			332
K-C Professional & Other		129			133			233			240
Health Care		53			42			103			99
Other (income) and expense, net(a)		(8	)		4			(10	)		105
Corporate & Other(b)		(138	)		(54	)		(289	)		(105	)
Total Operating Profit		625			711			1,169			1,376
Interest income		4			6			8			11
Interest expense		(71	)		(60	)		(135	)		(121	)
Income Before Income Taxes and Equity Interests	$	558		$	657		$	1,042		$	1,266

^(a)  For the six months ended June 30, 2010, Other (income) and expense, net included a $79 million charge for the adoption of highly inflationary accounting in Venezuela effective January 1, 2010. See additional information in Note 4.

^(b)  For the three months ended June 30, 2011, pulp and tissue restructuring charges of $90 million are included in Corporate & Other. See additional information in Note 3. For the six months ended June 30, 2011, pulp and tissue restructuring charges of $172 million and a non-deductible business tax charge of $32 million related to a law change in Colombia are included in Corporate & Other. The restructuring charges related to the business segments are as follows:

	Three Months Ended		Six Months Ended
	June 30, 2011		June 30, 2011
Consumer Tissue	$	77	$	152
K-C Professional & Other		13		20
	$	90	$	172

Also included in Corporate & Other for the six months ended June 30, 2010, is a $19 million charge related to the adoption of highly inflationary accounting in Venezuela. The charges related to the business segments are as follows:

	Millions of dollars
Personal Care	$	11
Consumer Tissue		6
K-C Professional & Other		2
Total	$	19