Description Of Business Segments

9 Months Ended

Sep. 30, 2012

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, 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 actions described in Note 3.

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, Kotex, Lightdays, Depend, 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, Hakle, Page and other brand names.

• K-C Professional & Other 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, tissues, and towels. Key brands in this segment include: Kleenex, Scott, WypAll, Kimtech, and Jackson Safety.

• Health Care provides the essentials that help restore patients to better health and improve the quality of patients' lives. Health Care offers a portfolio of innovative medical devices focused on pain management, respiratory and digestive health, and surgical and infection prevention products for the operating room. 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
	2012			2011			2012			2011
	(Millions of dollars)
NET SALES:
Personal Care	$	2,414		$	2,390		$	7,196		$	6,918
Consumer Tissue	1,605			1,711			4,852			5,054
K-C Professional & Other	822			863			2,458			2,477
Health Care	396			407			1,212			1,186
Corporate & Other	9			11			38			35
Consolidated	$	5,246		$	5,382		$	15,756		$	15,670
OPERATING PROFIT (reconciled to Income Before Income Taxes and Equity Interests):
Personal Care	$	436		$	396		$	1,241		$	1,185
Consumer Tissue	216			206			652			529
K-C Professional & Other	144			127			407			360
Health Care	59			56			168			159
Corporate & Other(a)	(77		)	(140		)	(246		)	(429		)
Other (income) and expense, net	(5		)	(17		)	(15		)	(27		)
Total Operating Profit	783			662			2,237			1,831
Interest income	4			5			13			13
Interest expense	(70		)	(70		)	(212		)	(205		)
Income Before Income Taxes and Equity Interests	$	717		$	597		$	2,038		$	1,639

^(a)  Corporate & Other includes pulp and tissue restructuring charges as follows:

	Three Months Ended September 30				Nine Months Ended September 30
	2012		2011		2012		2011
	(Millions of dollars)
Consumer Tissue	$	31	$	81	$	80	$	233
K-C Professional & Other	—		14		5		34
Total	$	31	$	95	$	85	$	267

See additional information in Note 3 for the pulp and tissue restructuring actions. The nine months ended September 30, 2011 also includes a non-deductible business tax charge of $32 million related to a law change in Colombia.