2024 Transformation Initiative

12 Months Ended

Dec. 31, 2025

Restructuring and Related Activities [Abstract]

2024 Transformation Initiative

On March 27, 2024, we announced the 2024 Transformation Initiative intended to improve our focus on growth and reduce our structural cost base by realigning our internal operating and management structure to streamline our global supply chain and improve the efficiency of our corporate and regional overhead cost structures. The transformation is expected to impact our organization in all major geographies, and workforce reductions are expected to be in the range of 4% to 5%. Certain actions under the 2024 Transformation Initiative are being finalized for implementation, and accounting for such actions will commence when the actions are authorized for execution.

The 2024 Transformation Initiative is expected to be completed by the end of 2026, with total costs anticipated to be approximately $1.5 billion pre-tax. Cash costs are expected to be approximately 60% of that amount, primarily related to workforce reductions and other program costs. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. Through December 31, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $808 ($634 after-tax).

The following charges were incurred in connection with the 2024 Transformation Initiative:


	Year Ended December 31
	2025		2024
Cost of products sold:
Charges for workforce reductions	$	21	$	69

Asset write-offs	38		27
Incremental depreciation	125		38
Other exit costs	29		10
Total	213		144
Marketing, research and general expenses:
Charges for workforce reductions	28		116
Other exit costs	114		112
Total	142		228
Other (income) and expense, net(a)	(7)		84
Nonoperating expense	3		1
Total charges(b)	351		457
Provision for income taxes	(56)		(118)
Net charges	295		339
Net charges related to noncontrolling interests	(7)		—
Net charges attributable to Kimberly-Clark Corporation	$	288	$	339

(a)Other (income) and expense, net includes gains and losses from the sale of manufacturing facilities and associated real estate and the exit of certain businesses and markets as part of the 2024 Transformation Initiative.

(b)We do not include 2024 Transformation Initiative charges within our segment operating results. Total impact of these charges to the NA and IPC segments would have been $198 and $135, respectively, for the year ended December 31, 2025, and $147 and $187, respectively, for the year ended December 31, 2024, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 16.

The following summarizes the 2024 Transformation Initiative liabilities activity:


	Year Ended December 31
	2025		2024
2024 Transformation Initiative liabilities as of January 1	$	130	$	—
Charges for workforce reductions and other cash exit costs	176		291
Cash payments	(229)		(156)
Currency and other	(15)		(5)
2024 Transformation Initiative liabilities as of December 31	$	62	$	130

2024 Transformation Initiative liabilities are recorded in Accrued expenses and other current liabilities. The charges related to the 2024 Transformation Initiative are reflected within Operating Activities of our Consolidated Statements of Cash Flows.