Description of Business Segments

12 Months Ended

Dec. 31, 2016

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 Wal-Mart Stores, Inc. were approximately 14 percent in 2016 and 2015, and 13 percent in 2014 of our total net sales.

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

Consolidated Operations by Business Segment

	Year Ended December 31
	2016			2015			2014
NET SALES(a)
Personal Care	$	9,046		$	9,204		$	9,635
Consumer Tissue	5,967			6,121			6,645
K-C Professional	3,150			3,219			3,388
Corporate & Other	39			47			56
TOTAL NET SALES	$	18,202		$	18,591		$	19,724
OPERATING PROFIT(b)
Personal Care	$	1,857		$	1,885		$	1,803
Consumer Tissue	1,117			1,073			1,062
K-C Professional	603			590			604
Corporate & Other(c)	(252		)	(367		)	(495		)
Other (income) and expense, net(d)	8			1,568			453
TOTAL OPERATING PROFIT	$	3,317		$	1,613		$	2,521

(a) Net sales in the United States to third parties totaled $8,874, $8,819 and $8,573 in 2016, 2015 and 2014, respectively.

(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 $38, $63 and $133 in 2016, 2015 and 2014, respectively, and $5 and $41 related to the remeasurement of the Venezuelan balance sheet in 2015 and 2014, respectively. Corporate & Other also includes charges of $23 for restructuring in Turkey in 2015, and $33 related to European strategic changes in 2014.

(d) Other (income) and expense, net for 2016 and 2015 includes income of $11 and a charge of $108, respectively, related to the deconsolidation of our Venezuelan operations, and for 2015 and 2014 includes charges of $40 and $421, respectively, related to the remeasurement of the Venezuelan balance sheet. In addition, 2015 includes $1,358 for charges related to pension settlements, and 2014 includes a charge of $35 related to a regulatory dispute in the Middle East.

	Personal Care		Consumer Tissue		K-C Professional		Corporate & Other		Ongoing Operations		Health Care Business (Spun-off)		Consolidated Total
Depreciation and Amortization
2016	$	305	$	280	$	116	$	4	$	705	$	—	$	705
2015	340		282		121		3		746		—		746
2014	359		299		132		3		793		69		862
Assets
2016	6,141		4,761		2,151		1,549		14,602		—		14,602
2015	6,330		5,050		2,264		1,198		14,842		—		14,842
2014	6,373		5,229		2,339		1,585		15,526		—		15,526
Capital Spending
2016	421		250		95		5		771		—		771
2015	590		344		116		6		1,056		—		1,056
2014	501		314		143		6		964		75		1,039

Sales of Principal Products

(Billions of dollars)	2016		2015		2014
Consumer tissue products	$	6.0	$	6.1	$	6.6
Baby and child care products	6.4		6.6		7.0
Away-from-home professional products	3.1		3.2		3.4
All other	2.7		2.7		2.7
Consolidated	$	18.2	$	18.6	$	19.7