2024 Transformation Initiative

3 Months Ended

Mar. 31, 2026

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 March 31, 2026, cumulative pre-tax charges for the 2024 Transformation Initiative were $859 ($666 after-tax).

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


	Three Months Ended March 31
	2026		2025
Cost of products sold:
Charges for workforce reductions	$	3	$	14

Asset write-offs	4		—
Incremental depreciation	31		32
Other exit costs	4		7
Total	42		53
Marketing, research and general expenses:
Charges for workforce reductions	9		2
Other exit costs	21		20
Total	30		22
Other (income) and expense, net(a)	(21)		—
Nonoperating expense	—		2
Total charges(b)	51		77
Provision for income taxes	(19)		—
Net charges	32		77
Net charges related to noncontrolling interests	(1)		—
Net charges attributable to Kimberly-Clark Corporation	$	31	$	77

(a)Other (income) and expense, net includes gains from the sale of manufacturing facilities and associated real estate 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 segment would have been $56 for the three months ended March 31, 2026 (IPC segment amount was not material), and $27 and $20 to the NA and IPC segments, respectively, for the three months ended March 31, 2025, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 9.

The following summarizes the 2024 Transformation Initiative liabilities activity:


	Total
Liabilities as of December 31, 2025	$	62
Charges for workforce reductions and other cash exit costs	37
Cash payments	(43)
Currency and other	(2)
Liabilities as of March 31, 2026	$	54

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 Condensed Consolidated Statements of Cash Flows.

KIMBERLY CLARK CORP 10-Q