UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March 31,~~June 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number 1-225

KIMBERLY CLARK CORPORATON

(Exact name of registrant as specified in its charter)


Delaware						39-0394230
(State or other jurisdiction of incorporation)						(I.R.S. Employer Identification No.)

P.O. Box 619100

Dallas, TX

75261-9100

(Address of principal executive offices)

(Zip code)

(972) 281-1200

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	KMB	New York Stock Exchange
0.625% Notes due 2024	KMB24	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large ~~Accelerated Filer~~accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of ~~April 15,~~July 16, 2020, there were ~~340,547,119~~ 341,047,156 shares of the Corporation's common stock outstanding.

Table of Contents


PART I – FINANCIAL INFORMATION			1

Item 1. Financial Statements			1

UNAUDITED CONSOLIDATED INCOME STATEMENTS FOR THE THREE AND SIX MONTHS ENDED ~~MARCH~~ 3 1 ~~, 20~~20 JUNE 30, 2020 AND 2019			1
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE AND SIX MONTHS ENDED ~~MARCH~~ 3 1 ~~, 20~~20 JUNE 30, 2020 AND 2019			2
CONSOLIDATED BALANCE SHEETS AS OF ~~MARCH~~ 3 1 ~~, 20~~20 JUNE 30, 2020 (UNAUDITED) AND DECEMBER 31, 2019			3
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE AND SIX MONTHS ENDED ~~MARCH~~JUNE 3 10 , 20 20 2020 AND 2019			4
UNAUDITED CONSOLIDATED CASH FLOW STATEMENTS FOR THE THREE AND SIX MONTHS ENDED ~~MARCH~~ 3 1 ~~, 20~~20 JUNE 30, 2020 AND 2019			56
UNAUDITED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS			67

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			1415

Item 4. Controls and Procedures			2223

PART II – OTHER INFORMATION			23

~~Item 1A - Risk Factors~~			2324

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			2324

Item 6. Exhibits			2425

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(Unaudited)


		Three Months Ended March 31							Three Months Ended June 30						Six Months Ended June 30
(Millions of dollars, except per share amounts)	(Millions of dollars, except per share amounts)	2020		2019		(Millions of dollars, except per share amounts)	2020		2019		2020		2019
Net Sales	Net Sales	$	5,009	$	4,633	Net Sales	$	4,612	$	4,594	$	9,621	$	9,227
Cost of products sold	Cost of products sold	3,218		3,205		Cost of products sold	2,835		3,108		6,053		6,313
Gross Profit	Gross Profit	1,791		1,428		Gross Profit	1,777		1,486		3,568		2,914
Marketing, research and general expenses	Marketing, research and general expenses	873		769		Marketing, research and general expenses	844		811		1,717		1,580
Other (income) and expense, net	Other (income) and expense, net	14		4		Other (income) and expense, net	8		5		22		9
Operating Profit	Operating Profit	904		655		Operating Profit	925		670		1,829		1,325
Nonoperating expense	Nonoperating expense	(11)		(11)		Nonoperating expense	(6)		(11)		(17)		(22)
Interest income	Interest income	2		3		Interest income	2		2		4		5
Interest expense	Interest expense	(61)		(65)		Interest expense	(65)		(67)		(126)		(132)
Income Before Income Taxes and Equity Interests	Income Before Income Taxes and Equity Interests	834		582		Income Before Income Taxes and Equity Interests	856		594		1,690		1,176
Provision for income taxes	Provision for income taxes	(197)		(143)		Provision for income taxes	(199)		(132)		(396)		(275)
Income Before Equity Interests	Income Before Equity Interests	637		439		Income Before Equity Interests	657		462		1,294		901
Share of net income of equity companies	Share of net income of equity companies	38		27		Share of net income of equity companies	35		33		73		60
Net Income	Net Income	675		466		Net Income	692		495		1,367		961
Net income attributable to noncontrolling interests	Net income attributable to noncontrolling interests	(15)		(12)		Net income attributable to noncontrolling interests	(11)		(10)		(26)		(22)
Net Income Attributable to Kimberly-Clark Corporation	Net Income Attributable to Kimberly-Clark Corporation	$	660	$	454	Net Income Attributable to Kimberly-Clark Corporation	$	681	$	485	$	1,341	$	939

Per Share Basis	Per Share Basis					Per Share Basis
Net Income Attributable to Kimberly-Clark Corporation	Net Income Attributable to Kimberly-Clark Corporation					Net Income Attributable to Kimberly-Clark Corporation
Basic	Basic	$	1.93	$	1.32	Basic	$	2.00	$	1.41	$	3.93	$	2.73
Diluted	Diluted	$	1.92	$	1.31	Diluted	$	1.99	$	1.40	$	3.92	$	2.71

See notes to the unaudited interim consolidated financial statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


		Three Months Ended March 31							Three Months Ended June 30						Six Months Ended June 30
(Millions of dollars)	(Millions of dollars)	2020		2019		(Millions of dollars)	2020		2019		2020		2019
Net Income	Net Income	$	675	$	466	Net Income	$	692	$	495	$	1,367	$	961
Other Comprehensive Income (Loss), Net of Tax	Other Comprehensive Income (Loss), Net of Tax					Other Comprehensive Income (Loss), Net of Tax
Unrealized currency translation adjustments	Unrealized currency translation adjustments	(399)		26		Unrealized currency translation adjustments	125		(4)		(274)		22
Employee postretirement benefits	Employee postretirement benefits	34		(4)		Employee postretirement benefits	5		26		39		22
Other	Other	32		(17)		Other	(24)		(3)		8		(20)
Total Other Comprehensive Income (Loss), Net of Tax	Total Other Comprehensive Income (Loss), Net of Tax	(333)		5		Total Other Comprehensive Income (Loss), Net of Tax	106		19		(227)		24
Comprehensive Income	Comprehensive Income	342		471		Comprehensive Income	798		514		1,140		985
Comprehensive (income) loss attributable to noncontrolling interests	Comprehensive (income) loss attributable to noncontrolling interests	(3)		(7)		Comprehensive (income) loss attributable to noncontrolling interests	(15)		(9)		(18)		(16)
Comprehensive Income Attributable to Kimberly-Clark Corporation	Comprehensive Income Attributable to Kimberly-Clark Corporation	$	339	$	464	Comprehensive Income Attributable to Kimberly-Clark Corporation	$	783	$	505	$	1,122	$	969

See notes to the unaudited interim consolidated financial statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(2020 Data is Unaudited)


(Millions of dollars)	(Millions of dollars)	March 31, 2020		December 31, 2019		(Millions of dollars)	June 30, 2020		December 31, 2019
ASSETS	ASSETS					ASSETS
Current Assets	Current Assets					Current Assets
Cash and cash equivalents	Cash and cash equivalents	$	979	$	442	Cash and cash equivalents	$	1,448	$	442
Accounts receivable, net	Accounts receivable, net	2,519		2,263		Accounts receivable, net	2,024		2,263
Inventories	Inventories	1,539		1,790		Inventories	1,825		1,790
Other current assets	Other current assets	609		562		Other current assets	607		562
Total Current Assets	Total Current Assets	5,646		5,057		Total Current Assets	5,904		5,057
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	7,226		7,450		Property, Plant and Equipment, Net	7,366		7,450
Investments in Equity Companies	Investments in Equity Companies	314		268		Investments in Equity Companies	319		268
Goodwill	Goodwill	1,361		1,467		Goodwill	1,401		1,467
Other Assets	Other Assets	1,130		1,041		Other Assets	1,183		1,041
TOTAL ASSETS	TOTAL ASSETS	$	15,677	$	15,283	TOTAL ASSETS	$	16,173	$	15,283

LIABILITIES AND STOCKHOLDERS' EQUITY	LIABILITIES AND STOCKHOLDERS' EQUITY					LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities	Current Liabilities					Current Liabilities
Debt payable within one year	Debt payable within one year	$	1,238	$	1,534	Debt payable within one year	$	850	$	1,534
Trade accounts payable	Trade accounts payable	2,876		3,055		Trade accounts payable	3,032		3,055
Accrued expenses and other current liabilities	Accrued expenses and other current liabilities	2,008		1,978		Accrued expenses and other current liabilities	2,252		1,978
Dividends payable	Dividends payable	361		352		Dividends payable	360		352
Total Current Liabilities	Total Current Liabilities	6,483		6,919		Total Current Liabilities	6,494		6,919
Long-Term Debt	Long-Term Debt	7,210		6,213		Long-Term Debt	7,223		6,213
Noncurrent Employee Benefits	Noncurrent Employee Benefits	859		897		Noncurrent Employee Benefits	859		897
Deferred Income Taxes	Deferred Income Taxes	512		511		Deferred Income Taxes	527		511
Other Liabilities	Other Liabilities	538		520		Other Liabilities	546		520
Redeemable Preferred Securities of Subsidiaries	Redeemable Preferred Securities of Subsidiaries	29		29		Redeemable Preferred Securities of Subsidiaries	29		29
Stockholders' Equity	Stockholders' Equity					Stockholders' Equity
Kimberly-Clark Corporation	Kimberly-Clark Corporation					Kimberly-Clark Corporation
Preferred stock - no par value - authorized 20.0 million shares, none issued	Preferred stock - no par value - authorized 20.0 million shares, none issued	—		—		Preferred stock - no par value - authorized 20.0 million shares, none issued	—		—
Common stock - $1.25 par value - authorized 1.2 billion shares; issued 378.6 million shares at March 31, 2020 and December 31, 2019		473		473
Common stock - $1.25 par value - authorized 1.2 billion shares; issued 378.6 million shares at June 30, 2020 and December 31, 2019						Common stock - $1.25 par value - authorized 1.2 billion shares; issued 378.6 million shares at June 30, 2020 and December 31, 2019	473		473
Additional paid-in capital	Additional paid-in capital	559		556		Additional paid-in capital	554		556
Common stock held in treasury, at cost - 37.8 and 37.1 million shares at March 31, 2020 and December 31, 2019, respectively		(4,562)		(4,454)
Common stock held in treasury, at cost - 37.6 and 37.1 million shares at June 30, 2020 and December 31, 2019, respectively						Common stock held in treasury, at cost - 37.6 and 37.1 million shares at June 30, 2020 and December 31, 2019, respectively	(4,545)		(4,454)
Retained earnings	Retained earnings	6,978		6,686		Retained earnings	7,299		6,686
Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)	(3,615)		(3,294)		Accumulated other comprehensive income (loss)	(3,513)		(3,294)
Total Kimberly-Clark Corporation Stockholders' Equity	Total Kimberly-Clark Corporation Stockholders' Equity	(167)		(33)		Total Kimberly-Clark Corporation Stockholders' Equity	268		(33)
Noncontrolling Interests	Noncontrolling Interests	213		227		Noncontrolling Interests	227		227
Total Stockholders' Equity	Total Stockholders' Equity	46		194		Total Stockholders' Equity	495		194
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	15,677	$	15,283	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	16,173	$	15,283

See notes to the unaudited interim consolidated financial statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

Three Months Ended March 31, 2020
(Millions of dollars, shares in thousands, except per share amounts) Common Stock
Issued Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Non-controlling Interests Total Stockholders' Equity
Shares Amount Shares Amount
Balance at December 31, 2019 378,597 $ 473 $ 556 37,149 $ (4,454) $ 6,686 $ (3,294) $ 227 $ 194
Net income in stockholders' equity, excludes redeemable interests' share — — — — — 660 — 14 674
Other comprehensive income, net of tax,
excludes redeemable interests' share — — — — — — (321) (12) (333)
Stock-based awards exercised or vested — — (14) (1,065) 121 — — — 107
Shares repurchased — — — 1,677 (229) — — — (229)
Recognition of stock-based compensation — — 15 — — — — — 15
Dividends declared ($1.07 per share) — — — — — (365) — (17) (382)
Other — — 2 — — (3) — 1 —
Balance at March 31, 2020 378,597 $ 473 $ 559 37,761 $ (4,562) $ 6,978 $ (3,615) $ 213 $ 46


	Three Months Ended June 30, 2020
(Millions of dollars, shares in thousands, except per share amounts)	Common Stock Issued							Additional Paid-in Capital	Treasury Stock							Retained Earnings	Accumulated Other Comprehensive Income (Loss)				Non-controlling Interests	Total Stockholders' Equity
		Shares			Amount				Shares		Amount
Balance at March 31, 2020	378,597		$	473		$	559	37,761	$	(4,562)		$	6,978	$	(3,615)		$	213	$	46
Net income in stockholders' equity, excludes redeemable interests' share	—		—			—		—	—			681		—			10		691
Other comprehensive income, net of tax, excludes redeemable interests' share	—		—			—		—	—			—		102			4		106
Stock-based awards exercised or vested	—		—			(38)		(557)	66			—		—			—		28
Shares repurchased	—		—			—		370	(49)			—		—			—		(49)
Recognition of stock-based compensation	—		—			38		—	—			—		—			—		38
Dividends declared ($1.07 per share)	—		—			—		—	—			(365)		—			—		(365)
Other	—		—			(5)		—	—			5		—			—		—
Balance at June 30, 2020	378,597		$	473		$	554	37,574	$	(4,545)		$	7,299	$	(3,513)		$	227	$	495

Three Months Ended March 31, 2019
(Millions of dollars, shares in thousands, except per share amounts) Common Stock
Issued Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Non-controlling Interests Total Stockholders' Equity
Shares Amount Shares Amount
Balance at December 31, 2018 378,597 $ 473 $ 548 33,635 $ (3,956) $ 5,947 $ (3,299) $ 241 $ (46)
Net income in stockholders' equity, excludes redeemable interests' share — — — — — 454 — 11 465
Other comprehensive income, net of tax,
excludes redeemable interests' share — — — — — — 10 (5) 5
Stock-based awards exercised or vested — — (27) (487) 55 — — — 28
Shares repurchased — — — 1,509 (174) — — — (174)
Recognition of stock-based compensation — — 17 — — — — — 17
Dividends declared ($1.03 per share) — — — — — (354) — (24) (378)
Other — — — — — 1 — — 1
Balance at March 31, 2019 378,597 $ 473 $ 538 34,657 $ (4,075) $ 6,048 $ (3,289) $ 223 $ (82)


	Six Months Ended June 30, 2020
(Millions of dollars, shares in thousands, except per share amounts)	Common Stock Issued							Additional Paid-in Capital	Treasury Stock							Retained Earnings	Accumulated Other Comprehensive Income (Loss)				Non-controlling Interests	Total Stockholders' Equity
		Shares			Amount				Shares		Amount
Balance at December 31, 2019	378,597		$	473		$	556	37,149	$	(4,454)		$	6,686	$	(3,294)		$	227	$	194
Net income in stockholders' equity, excludes redeemable interests' share	—		—			—		—	—			1,341		—			24		1,365
Other comprehensive income, net of tax, excludes redeemable interests' share	—		—			—		—	—			—		(219)			(8)		(227)
Stock-based awards exercised or vested	—		—			(52)		(1,622)	187			—		—			—		135
Shares repurchased	—		—			—		2,047	(278)			—		—			—		(278)
Recognition of stock-based compensation	—		—			53		—	—			—		—			—		53
Dividends declared ($2.14 per share)	—		—			—		—	—			(730)		—			(17)		(747)
Other	—		—			(3)		—	—			2		—			1		—
Balance at June 30, 2020	378,597		$	473		$	554	37,574	$	(4,545)		$	7,299	$	(3,513)		$	227	$	495

See notes to the unaudited interim consolidated financial statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)


	Three Months Ended June 30, 2019
(Millions of dollars, shares in thousands, except per share amounts)	Common Stock Issued							Additional Paid-in Capital	Treasury Stock							Retained Earnings	Accumulated Other Comprehensive Income (Loss)				Non-controlling Interests	Total Stockholders' Equity
		Shares			Amount				Shares		Amount
Balance at March 31, 2019	378,597		$	473		$	538	34,657	$	(4,075)		$	6,048	$	(3,289)		$	223	$	(82)
Net income in stockholders' equity, excludes redeemable interests' share	—		—			—		—	—			485		—			9		494
Other comprehensive income, net of tax, excludes redeemable interests' share	—		—			—		—	—			—		20			(2)		18
Stock-based awards exercised or vested	—		—			(60)		(1,672)	192			—		—			—		132
Shares repurchased	—		—			—		1,396	(179)			—		—			—		(179)
Recognition of stock-based compensation	—		—			31		—	—			—		—			—		31
Dividends declared ($1.03 per share)	—		—			—		—	—			(355)		—			—		(355)
Other	—		—			1		—	—			(8)		—			(2)		(9)
Balance at June 30, 2019	378,597		$	473		$	510	34,381	$	(4,062)		$	6,170	$	(3,269)		$	228	$	50


	Six Months Ended June 30, 2019
(Millions of dollars, shares in thousands, except per share amounts)	Common Stock Issued							Additional Paid-in Capital	Treasury Stock							Retained Earnings	Accumulated Other Comprehensive Income (Loss)				Non-controlling Interests	Total Stockholders' Equity
		Shares			Amount				Shares		Amount
Balance at December 31, 2018	378,597		$	473		$	548	33,635	$	(3,956)		$	5,947	$	(3,299)		$	241	$	(46)
Net income in stockholders' equity, excludes redeemable interests' share	—		—			—		—	—			939		—			20		959
Other comprehensive income, net of tax, excludes redeemable interests' share	—		—			—		—	—			—		30			(7)		23
Stock-based awards exercised or vested	—		—			(87)		(2,159)	247			—		—			—		160
Shares repurchased	—		—			—		2,905	(353)			—		—			—		(353)
Recognition of stock-based compensation	—		—			48		—	—			—		—			—		48
Dividends declared ($2.06 per share)	—		—			—		—	—			(709)		—			(24)		(733)
Other	—		—			1		—	—			(7)		—			(2)		(8)
Balance at June 30, 2019	378,597		$	473		$	510	34,381	$	(4,062)		$	6,170	$	(3,269)		$	228	$	50

See notes to the unaudited interim consolidated financial statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)


		Three Months Ended March 31							Six Months Ended June 30
(Millions of dollars)	(Millions of dollars)	2020		2019		(Millions of dollars)	2020		2019
Operating Activities	Operating Activities					Operating Activities
Net income	Net income	$	675	$	466	Net income	$	1,367	$	961
Depreciation and amortization	Depreciation and amortization	213		234		Depreciation and amortization	414		470

Stock-based compensation	Stock-based compensation	15		16		Stock-based compensation	54		48
Deferred income taxes	Deferred income taxes	(9)		11		Deferred income taxes	12		26
Net (gains) losses on asset dispositions	Net (gains) losses on asset dispositions	7		6		Net (gains) losses on asset dispositions	13		17
Equity companies' earnings (in excess of) less than dividends paid	Equity companies' earnings (in excess of) less than dividends paid	(38)		(27)		Equity companies' earnings (in excess of) less than dividends paid	(47)		(30)
Operating working capital	Operating working capital	(144)		(375)		Operating working capital	490		(525)
Postretirement benefits	Postretirement benefits	(14)		(12)		Postretirement benefits	(15)		(21)
Other	Other	(1)		(2)		Other	(5)		(20)
Cash Provided by Operations	Cash Provided by Operations	704		317		Cash Provided by Operations	2,283		926
Investing Activities	Investing Activities					Investing Activities
Capital spending	Capital spending	(352)		(316)		Capital spending	(636)		(569)

Investments in time deposits	Investments in time deposits	(105)		(80)		Investments in time deposits	(323)		(186)
Maturities of time deposits	Maturities of time deposits	96		72		Maturities of time deposits	254		229
Other	Other	2		—		Other	15		4
Cash Used for Investing	Cash Used for Investing	(359)		(324)		Cash Used for Investing	(690)		(522)
Financing Activities	Financing Activities					Financing Activities
Cash dividends paid	Cash dividends paid	(357)		(345)		Cash dividends paid	(722)		(700)
Change in short-term debt	Change in short-term debt	(282)		851		Change in short-term debt	(667)		543
Debt proceeds	Debt proceeds	1,241		—		Debt proceeds	1,241		696
Debt repayments	Debt repayments	(252)		(402)		Debt repayments	(252)		(703)
Proceeds from exercise of stock options	Proceeds from exercise of stock options	108		26		Proceeds from exercise of stock options	135		160
Acquisitions of common stock for the treasury	Acquisitions of common stock for the treasury	(214)		(164)		Acquisitions of common stock for the treasury	(263)		(330)
Other	Other	(24)		(8)		Other	(39)		(79)
Cash Used for Financing	Cash Used for Financing	220		(42)		Cash Used for Financing	(567)		(413)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	Effect of Exchange Rate Changes on Cash and Cash Equivalents	(28)		1		Effect of Exchange Rate Changes on Cash and Cash Equivalents	(20)		4
Change in Cash and Cash Equivalents	Change in Cash and Cash Equivalents	537		(48)		Change in Cash and Cash Equivalents	1,006		(5)
Cash and Cash Equivalents - Beginning of Period	Cash and Cash Equivalents - Beginning of Period	442		539		Cash and Cash Equivalents - Beginning of Period	442		539
Cash and Cash Equivalents - End of Period	Cash and Cash Equivalents - End of Period	$	979	$	491	Cash and Cash Equivalents - End of Period	$	1,448	$	534

See notes to the unaudited interim consolidated financial statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Accounting Policies

Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair presentation of the results for the periods presented have been reflected. Dollar amounts are reported in millions, except per share dollar amounts, unless otherwise noted.

For further information, refer to the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2019. The terms "Corporation," "Kimberly-Clark," "K-C," "we," "our" and "us" refer to Kimberly-Clark Corporation and its consolidated subsidiaries.

Highly Inflationary Accounting in Argentina

GAAP guidance requires the use of highly inflationary accounting for countries whose cumulative three-year inflation exceeds 100 percent. In the second quarter of 2018, published inflation indices indicated that the three-year cumulative inflation in Argentina exceeded 100 percent, and as of July 1, 2018, we elected to adopt highly inflationary accounting for our subsidiaries in Argentina (“K-C Argentina”). Under highly inflationary accounting, K-C Argentina’s functional currency became the U.S. dollar, and its income statement and balance sheet have been measured in U.S. dollars using both current and historical rates of exchange. The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net and was not material. As of ~~March 31,~~June 30, 2020, K-C Argentina had a small net peso monetary position. Net sales of K-C Argentina were approximately 1 percent of our consolidated net sales for the ~~three~~six months ended ~~March 31,~~June 30, 2020 and 2019.

Recently Adopted Accounting Standards

The Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40). The new guidance reduces complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). We adopted this standard as of January 1, 2020 on a prospective basis. The effects of this standard on our financial position, results of operations and cash flows were not material.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities’ financial reporting burdens as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and generally can be applied through December 31, 2022. The effects of this standard on our financial position, results of operations and cash flows are not expected to be material.

Accounting Standards Issued - Not Yet Adopted

The FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The new guidance simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, hybrid taxes and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. For public companies, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted in interim or annual periods with any adjustments reflected as of the beginning of the annual period that includes that interim period. Additionally, entities that elect early adoption must adopt all the amendments in the same period. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. The effects of this standard on our financial position, results of operations or cash flows are not expected to be material.

Note 2. 2018 Global Restructuring Program

In January 2018, we announced the 2018 Global Restructuring Program to reduce our structural cost base by streamlining and simplifying our manufacturing supply chain and overhead organization. We expect to close or sell approximately 10 manufacturing facilities and expand production capacity at several others. We expect to exit or divest some lower-margin businesses that generate approximately 1 percent of our net sales. The restructuring is expected to impact our organizations in all major geographies. Workforce reductions are expected to be in the range of 5,000 to 5,500. Certain capital appropriations under the 2018 Global Restructuring Program are being finalized. Accounting for actions related to each appropriation will commence when the appropriation is authorized for execution.

The restructuring is expected to be completed in 2021, with total costs anticipated to be toward the high end of the ~~previously estimated~~ range of $1.7 billion to $1.9 billion pre-tax ($1.3 billion to $1.4 billion after tax). Cash costs are expected to be $900 to $1.0 billion, primarily related to workforce reductions. Non-cash charges are expected to be $800 to $900 pre-tax and will primarily consist of incremental depreciation, asset write-offs and pension settlement and curtailment charges.

The following net charges were incurred in connection with the 2018 Global Restructuring Program:


		Three Months Ended March 31							Three Months Ended June 30						Six Months Ended June 30
		2020		2019			2020		2019		2020		2019
Cost of products sold:	Cost of products sold:					Cost of products sold:
Charges for workforce reductions	Charges for workforce reductions	$	—	$	30	Charges for workforce reductions	$	1	$	2	$	1	$	32

Asset write-offs	Asset write-offs	6		12		Asset write-offs	3		15		9		27
Incremental depreciation	Incremental depreciation	35		67		Incremental depreciation	33		65		68		132
Other exit costs	Other exit costs	29		16		Other exit costs	23		20		52		36
Total	Total	70		125		Total	60		102		130		227
Marketing, research and general expenses:	Marketing, research and general expenses:					Marketing, research and general expenses:
Charges (adjustments) for workforce reductions	Charges (adjustments) for workforce reductions	(3)		4		Charges (adjustments) for workforce reductions	1		(12)		(2)		(8)
Other exit costs	Other exit costs	26		24		Other exit costs	26		29		52		53
Total	Total	23		28		Total	27		17		50		45
Other (income) and expense, net	Other (income) and expense, net	—		(1)		Other (income) and expense, net	—		—		—		(1)
Total charges	Total charges	93		152		Total charges	87		119		180		271
Provision for income taxes	Provision for income taxes	(18)		(31)		Provision for income taxes	(15)		(27)		(33)		(58)
Net charges	Net charges	75		121		Net charges	72		92		147		213
Net impact related to equity companies and noncontrolling interests	Net impact related to equity companies and noncontrolling interests	(1)		1		Net impact related to equity companies and noncontrolling interests	—		—		(1)		1
Net charges attributable to Kimberly-Clark Corporation	Net charges attributable to Kimberly-Clark Corporation	$	74	$	122	Net charges attributable to Kimberly-Clark Corporation	$	72	$	92	$	146	$	214

The following summarizes the restructuring liabilities activity:


		2020		2019			2020		2019
Restructuring liabilities at January 1	Restructuring liabilities at January 1	$	132	$	210	Restructuring liabilities at January 1	$	132	$	210
Charges for workforce reductions and other cash exit costs	Charges for workforce reductions and other cash exit costs	50		74		Charges for workforce reductions and other cash exit costs	99		112
Cash payments	Cash payments	(64)		(71)		Cash payments	(122)		(142)
Currency and other	Currency and other	(7)		6		Currency and other	(3)		6
Restructuring liabilities at March 31		$	111	$	219
Restructuring liabilities at June 30						Restructuring liabilities at June 30	$	106	$	186

Restructuring liabilities of ~~$77~~$75 and ~~$132~~$125 are recorded in Accrued expenses and other current liabilities and ~~$34~~$31 and ~~$87~~$61 are recorded in Other Liabilities as of ~~March 31,~~June 30, 2020 and 2019, respectively. The impact related to restructuring charges is recorded in Operating working capital and Other Operating Activities, as appropriate, in our consolidated cash flow statements.

Through ~~March 31,~~June 30, 2020, cumulative pre-tax charges for the 2018 Global Restructuring Program were ~~$1.5~~$1.6 billion ($~~1.1~~1.2 billion after tax).

Note 3. Fair Value Information

The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are:

Level 1 – Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities.

Level 2 – Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3 – Prices or valuations that require inputs that are significant to the valuation and are unobservable.

A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

During the ~~three~~six months ended ~~March 31,~~June 30, 2020 and for the full year 2019, there were no significant transfers to or from level 3 fair value determinations.

Derivative assets and liabilities are measured on a recurring basis at fair value. At ~~March 31,~~June 30, 2020 and December 31, 2019, derivative assets were ~~$166~~$113 and $34, respectively, and derivative liabilities were ~~$44~~$28 and $44, respectively. The fair values of derivatives used to manage interest rate risk and commodity price risk are based on LIBOR rates and interest rate swap curves and NYMEX price quotations, respectively. The fair values of hedging instruments used to manage foreign currency risk are based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. Measurement of our derivative assets and liabilities is considered a level 2 measurement. Additional information on our classification and use of derivative instruments is contained in Note 6.

Redeemable preferred securities of subsidiaries are measured on a recurring basis at fair value and were $29 ~~at March 31,~~as of June 30, 2020 and December 31, 2019. They are not traded in active markets. As of ~~March 31,~~June 30, 2020, the fair values of the redeemable securities were based on a discounted cash flow valuation model. Measurement of the redeemable preferred securities is considered a level 3 measurement.

Company-owned life insurance ("COLI") assets are measured on a recurring basis at fair value. COLI assets were ~~$65~~$69 and $76 at ~~March 31,~~June 30, 2020 and December 31, 2019, respectively. The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in Other Assets. The COLI policies are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy.

The following table includes the fair value of our financial instruments for which disclosure of fair value is required:


		Fair Value Hierarchy Level	Carrying Amount			Estimated Fair Value		Carrying Amount		Estimated Fair Value			Fair Value Hierarchy Level		Carrying Amount			Estimated Fair Value			Carrying Amount					Estimated Fair Value
														Fair Value Hierarchy Level
					March 31, 2020							December 31, 2019							Fair Value Hierarchy Level						June 30, 2020					December 31, 2019
Assets	Assets											Assets
Cash and cash equivalents^(a)	Cash and cash equivalents^(a)	1	$	979		$	979	$	442	$	442	Cash and cash equivalents^(a)	1			$	1,448			$	1,448		$	442				$	442
Time deposits^(b)	Time deposits^(b)	1	269			269		275		275		Time deposits^(b)	1		336			336						275					275

Liabilities	Liabilities											Liabilities
Short-term debt^(c)	Short-term debt^(c)	2	481			481		775		775		Short-term debt^(c)	2		93			93				775					775

Long-term debt^(d)	Long-term debt^(d)	2	7,967			8,864		6,972		7,877		Long-term debt^(d)	2		7,980			9,410			6,972					7,877

(a)Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at cost, which approximates fair value.

(b)Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of greater than one year, included in Other current assets or Other Assets in the consolidated balance sheet, as appropriate. Time deposits are recorded at cost, which approximates fair value.

(c)Short-term debt is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value.

(d)Long-term debt includes the current portion of these debt instruments. Fair values were estimated based on quoted prices for financial instruments for which all significant inputs were observable, either directly or indirectly.

Note 4. Earnings Per Share ("EPS")

There are no adjustments required to be made to net income for purposes of computing EPS. The average number of common shares outstanding is reconciled to those used in the basic and diluted EPS computations as follows:


		Three Months Ended March 31				Three Months Ended June 30			Six Months Ended June 30
(Millions of shares)	(Millions of shares)	2020	2019	(Millions of shares)	2020	2019	2020	2019
Basic	Basic	341.4	344.3	Basic	340.9	344.2	341.1	344.3
Dilutive effect of stock options and restricted share unit awards	Dilutive effect of stock options and restricted share unit awards	2.7	1.7	Dilutive effect of stock options and restricted share unit awards	1.0	1.8	1.2	1.7
Diluted	Diluted	344.1	346.0	Diluted	341.9	346.0	342.3	346.0

The impact of options outstanding that were not included in the computation of diluted EPS because their exercise price was greater than the average market price of the common shares was insignificant. The number of common shares outstanding as of ~~March 31,~~June 30, 2020 and 2019 was ~~340.8~~341.0 million and ~~343.9~~344.2 million, respectively.

Note 5. Stockholders' Equity

Net unrealized currency gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries, except those in highly inflationary economies, are recorded in Accumulated Other Comprehensive Income ("AOCI"). For these operations, changes in exchange rates generally do not affect cash flows; therefore, unrealized translation adjustments are recorded in AOCI rather than net income. Upon sale or substantially complete liquidation of any of these subsidiaries, the applicable unrealized translation would be removed from AOCI and reported as part of the gain or loss on the sale or liquidation.

Also included in unrealized translation amounts are the effects of foreign exchange rate changes on intercompany balances of a long-term investment nature and transactions designated as hedges of net foreign investments.

The change in net unrealized currency translation for the ~~three~~six months ended ~~March 31,~~June 30, 2020 was primarily due to weakening of foreign currencies versus the U.S. dollar.

The changes in the components of AOCI attributable to Kimberly-Clark, net of tax, are as follows:


		Unrealized Translation		Defined Benefit Pension Plans			Other Postretirement Benefit Plans		Cash Flow Hedges and Other			Unrealized Translation		Defined Benefit Pension Plans			Other Postretirement Benefit Plans			Cash Flow Hedges and Other
Balance as of December 31, 2018	Balance as of December 31, 2018	$	(2,297)	$	(1,017)		$	12	$	3	Balance as of December 31, 2018	$	(2,297)	$	(1,017)		$	12		$	3
Other comprehensive income (loss) before reclassifications	Other comprehensive income (loss) before reclassifications	31		(7)			—		(12)		Other comprehensive income (loss) before reclassifications	29		1			15			(12)
(Income) loss reclassified from AOCI	(Income) loss reclassified from AOCI	—		3		(a)	—		(5)		(Income) loss reclassified from AOCI	—		6		(a)	(1)		(a)	(8)
Net current period other comprehensive income (loss)	Net current period other comprehensive income (loss)	31		(4)			—		(17)		Net current period other comprehensive income (loss)	29		7			14			(20)

Balance as of March 31, 2019		$	(2,266)	$	(1,021)		$	12	$	(14)
Balance as of June 30, 2019											Balance as of June 30, 2019	$	(2,268)	$	(1,010)		$	26		$	(17)

Balance as of December 31, 2019	Balance as of December 31, 2019	$	(2,271)	$	(979)		$	(13)	$	(31)	Balance as of December 31, 2019	$	(2,271)	$	(979)		$	(13)		$	(31)
Other comprehensive income (loss) before reclassifications	Other comprehensive income (loss) before reclassifications	(386)		19			5		31		Other comprehensive income (loss) before reclassifications	(266)		22			2			17
(Income) loss reclassified from AOCI	(Income) loss reclassified from AOCI	—		10		(a)	—		—		(Income) loss reclassified from AOCI	—		16		(a)	(1)		(a)	(9)
Net current period other comprehensive income (loss)	Net current period other comprehensive income (loss)	(386)		29			5		31		Net current period other comprehensive income (loss)	(266)		38			1			8

Balance as of March 31, 2020		$	(2,657)	$	(950)		$	(8)	$	—
Balance as of June 30, 2020											Balance as of June 30, 2020	$	(2,537)	$	(941)		$	(12)		$	(23)

(a) Included in computation of net periodic benefit costs.

Note 6. Objectives and Strategies for Using Derivatives

As a multinational enterprise, we are exposed to financial risks, such as changes in foreign currency exchange rates, interest rates, and commodity prices. We employ a number of practices to manage these risks, including operating and financing activities and, where appropriate, the use of derivative instruments.

At ~~March 31,~~June 30, 2020 and December 31, 2019, derivative assets were ~~$166~~$113 and $34, respectively, and derivative liabilities were ~~$44~~$28 and $44, respectively, primarily comprised of foreign currency exchange contracts. Derivative assets are recorded in Other

current assets or Other Assets, as appropriate, and derivative liabilities are recorded in Accrued expenses and other current liabilities or Other Liabilities, as appropriate.

Foreign Currency Exchange Rate Risk

Translation adjustments result from translating foreign entities' financial statements into U.S. dollars from their functional currencies. The risk to any particular entity's net assets is reduced to the extent that the entity is financed with local currency borrowings. A portion of our balance sheet translation exposure for certain affiliates, which results from changes in translation rates between the affiliates’ functional currencies and the U.S. dollar, is hedged with cross-currency swap contracts and certain foreign denominated debt which are designated as net investment hedges. The foreign currency exposure on certain non-functional currency denominated monetary assets and liabilities, primarily intercompany loans and accounts payable, is hedged with primarily undesignated derivative instruments.

Derivative instruments are entered into to hedge a portion of forecasted cash flows denominated in foreign currencies for non-U.S. operations' purchases of raw materials, which are priced in U.S. dollars, and imports of intercompany finished goods and work-in-process priced predominantly in U.S. dollars and euros. The derivative instruments used to manage these exposures are designated as cash flow hedges.

Interest Rate Risk

Interest rate risk is managed using a portfolio of variable and fixed-rate debt composed of short and long-term instruments. Interest rate swap contracts may be used to facilitate the maintenance of the desired ratio of variable and fixed-rate debt and are designated as fair value hedges. From time to time, we also hedge the anticipated issuance of fixed-rate debt, and these contracts are designated as cash flow hedges.

Commodity Price Risk

We use derivative instruments, such as forward contracts, to hedge a limited portion of our exposure to market risk arising from changes in prices of certain commodities. These derivatives are designated as cash flow hedges of specific quantities of the underlying commodity expected to be purchased in future months. In addition, we utilize negotiated short-term contract structures, including fixed price contracts, to manage volatility for a portion of our commodity costs.

Fair Value Hedges

Derivative instruments that are designated and qualify as fair value hedges are predominantly used to manage interest rate risk. The fair values of these interest rate derivative instruments are recorded as an asset or liability, as appropriate, with the offset recorded in Interest expense. The offset to the change in fair values of the related debt is also recorded in Interest expense. Any realized gain or loss on the derivatives that hedge interest rate risk is amortized to Interest expense over the life of the related debt. As of ~~March 31,~~June 30, 2020, the aggregate notional values and carrying values of outstanding interest rate contracts designated as fair value hedges were $300 and ~~$322,~~$325, respectively. For the ~~three~~six months ended ~~March 31,~~June 30, 2020 and 2019, gains or losses recognized in Interest expense for interest rate swaps were not significant.

Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is initially recorded in AOCI, net of related income taxes, and recognized in earnings in the same income statement line and period that the hedged exposure affects earnings. As of ~~March 31,~~June 30, 2020, outstanding commodity forward contracts were in place to hedge a limited portion of our estimated requirements of the related underlying commodities in the remainder of 2020 and future periods. As of ~~March 31,~~June 30, 2020, the aggregate notional value of outstanding foreign exchange derivative contracts designated as cash flow hedges was ~~$698.~~$663. For the ~~three~~six months ended ~~March 31,~~June 30, 2020 and 2019, no significant gains or losses were reclassified into Interest expense, Cost of products sold or Other (income) and expense, net as a result of the discontinuance of cash flow hedges due to the original forecasted transaction no longer being probable of occurring. At ~~March 31,~~June 30, 2020, amounts to be reclassified from AOCI into Interest expense, Cost of products sold or Other (income) and expense, net during the next twelve months are not expected to be material. The maximum maturity of cash flow hedges in place at ~~March 31,~~June 30, 2020 is ~~March~~June 2022.

1011

Net Investment Hedges

For derivative instruments that are designated and qualify as net investment hedges, the aggregate notional value was ~~$1.6~~$1.5 billion at ~~March 31,~~June 30, 2020. We exclude the interest accruals on cross-currency swap contracts and the forward points on foreign exchange forward contracts from the assessment and measurement of hedge effectiveness. We recognize the interest accruals on cross-currency swap contracts in earnings within Interest expense. We amortize the forward points on foreign exchange contracts into earnings within Interest expense over the life of the hedging relationship. Changes in fair value of net investment hedges are recorded in AOCI and offset the change in the value of the net investment being hedged. For the ~~three~~six months ended ~~March 31,~~June 30, 2020, unrealized gains of ~~$93~~$71 related to net investment hedge fair value changes were recorded in AOCI and no significant amounts were reclassified from AOCI to Interest expense.

No significant amounts were excluded from the assessment of net investment, fair value or cash flow hedge effectiveness as of ~~March 31,~~June 30, 2020.

Undesignated Hedging Instruments

Gains or losses on undesignated foreign exchange hedging instruments are immediately recognized in Other (income) and expense, net. ~~Losses~~A gain of $4$12 and $8loss of $5 were recorded in the three months ended ~~March 31,~~June 30, 2020 and 2019, respectively. A gain of $8 and loss of $13 were recorded in the six months ended June 30, 2020 and 2019, respectively. The effect on earnings from the use of these non-designated derivatives is substantially neutralized by the transactional gains and losses recorded on the underlying assets and liabilities. At ~~March 31,~~June 30, 2020, the notional value of these undesignated derivative instruments was approximately ~~$1.9~~$1.7 billion.

Note 7. 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 K-C Professional. 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 ongoing operations of the business segments, including the costs of corporate decisions related to the 2018 Global Restructuring Program described in Note 2.

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 responsibly improve everyday living for families around the world. 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 KleenGuard are well known for quality and trusted to help people around the world work better.

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


		Three Months Ended March 31									Three Months Ended June 30								Six Months Ended June 30
		2020		2019		Change			2020		2019		Change		2020		2019		Change
NET SALES	NET SALES							NET SALES
Personal Care	Personal Care	$	2,422	$	2,275	+6	%	Personal Care	$	2,229	$	2,286	-2	%	$	4,651	$	4,561	+2	%
Consumer Tissue	Consumer Tissue	1,723		1,526		+13	%	Consumer Tissue	1,645		1,472		+12	%	3,368		2,998		+12	%
K-C Professional	K-C Professional	848		817		+4	%	K-C Professional	724		821		-12	%	1,572		1,638		-4	%
Corporate & Other	Corporate & Other	16		15		N.M.		Corporate & Other	14		15		N.M.		30		30		N.M.
TOTAL NET SALES	TOTAL NET SALES	$	5,009	$	4,633	+8	%	TOTAL NET SALES	$	4,612	$	4,594	—	%	$	9,621	$	9,227	+4

OPERATING PROFIT	OPERATING PROFIT							OPERATING PROFIT
Personal Care	Personal Care	$	527	$	484	+9	%	Personal Care	$	519	$	485	+7	%	$	1,046	$	969	+8	%
Consumer Tissue	Consumer Tissue	365		241		+51	%	Consumer Tissue	428		221		+94	%	793		462		+72	%
K-C Professional	K-C Professional	181		150		+21	%	K-C Professional	155		162		-4	%	336		312		+8	%
Corporate & Other^(a)	Corporate & Other^(a)	(155)		(216)		N.M.		Corporate & Other^(a)	(169)		(193)		N.M.		(324)		(409)		N.M.
Other (income) and expense, net^(a)	Other (income) and expense, net^(a)	14		4		+250	%	Other (income) and expense, net^(a)	8		5		+60	%	22		9		+144	%
TOTAL OPERATING PROFIT	TOTAL OPERATING PROFIT	$	904	$	655	+38	%	TOTAL OPERATING PROFIT	$	925	$	670	+38	%	$	1,829	$	1,325	+38	%

(a) Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including charges related to the 2018 Global Restructuring Program. Restructuring charges related to the ~~personal care, consumer tissue~~Personal Care, Consumer Tissue and K-C Professional business segments were $40, $34 ~~$42~~and $11, respectively, for the three months ended June 30, 2020, $66, $36 and $15, respectively, for the three months ended ~~March 31, 2020~~June 30, 2019, $74, $76 and ~~$89, $46 and $16,~~$26, respectively, for the ~~three~~six months ended ~~March 31,~~June 30, 2020 and $155, $82 and $31, respectively for the six months ended June 30, 2019.

N.M. - Not Meaningful

Sales of Principal Products


		Three Months Ended March 31							Three Months Ended June 30						Six Months Ended June 30
(Billions of dollars)	(Billions of dollars)	2020		2019		(Billions of dollars)	2020		2019		2020		2019
Baby and child care products	Baby and child care products	$	1.7	$	1.6	Baby and child care products	1.5		1.6		3.2		3.1
Consumer tissue products	Consumer tissue products	1.7		1.5		Consumer tissue products	1.6		1.5		3.4		3.0
Away-from-home professional products	Away-from-home professional products	0.8		0.8		Away-from-home professional products	0.7		0.8		1.6		1.6
All other	All other	0.8		0.7		All other	0.8		0.7		1.4		1.5
Consolidated	Consolidated	$	5.0	$	4.6	Consolidated	$	4.6	$	4.6	$	9.6	$	9.2

Note 8. Supplemental Balance Sheet Data

The following schedule presents a summary of inventories by major class:


		March 31, 2020										December 31, 2019											June 30, 2020				December 31, 2019
		LIFO		Non-LIFO		Total		LIFO		Non-LIFO		Total			LIFO		Non-LIFO		Total		LIFO		Non-LIFO		Total
Raw materials	Raw materials	$	87	$	205	$	292	$	85	$	236	$	321	Raw materials	$	122	$	261	$	383	$	85	$	236	$	321
Work in process	Work in process	102		75		177		113		93		206		Work in process	106		75		181		113		93		206
Finished goods	Finished goods	417		535		952		451		696		1,147		Finished goods	448		679		1,127		451		696		1,147
Supplies and other	Supplies and other	—		265		265		—		271		271		Supplies and other	—		277		277		—		271		271
		606		1,080		1,686		649		1,296		1,945			676		1,292		1,968		649		1,296		1,945
Excess of FIFO or weighted-average cost over LIFO cost	Excess of FIFO or weighted-average cost over LIFO cost	(147)		—		(147)		(155)		—		(155)		Excess of FIFO or weighted-average cost over LIFO cost	(143)		—		(143)		(155)		—		(155)
Total	Total	$	459	$	1,080	$	1,539	$	494	$	1,296	$	1,790	Total	$	533	$	1,292	$	1,825	$	494	$	1,296	$	1,790

Inventories are valued at the lower of cost or net realizable value, determined on the FIFO or weighted-average cost methods, and at the lower of cost or market, determined on the LIFO cost method.

1213

The following schedule presents a summary of property, plant and equipment, net:


		March 31, 2020		December 31, 2019			June 30, 2020		December 31, 2019
Land	Land	$	160	$	165	Land	$	162	$	165
Buildings	Buildings	2,786		2,877		Buildings	2,863		2,877
Machinery and equipment	Machinery and equipment	13,610		13,946		Machinery and equipment	13,887		13,946
Construction in progress	Construction in progress	838		851		Construction in progress	826		851
		17,394		17,839			17,738		17,839
Less accumulated depreciation	Less accumulated depreciation	(10,168)		(10,389)		Less accumulated depreciation	(10,372)		(10,389)
Total	Total	$	7,226	$	7,450	Total	$	7,366	$	7,450

1314

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Introduction

This management's discussion and analysis ("MD&A") of financial condition and results of operations is intended to provide investors with an understanding of our recent performance, financial condition and prospects. Dollar amounts are reported in millions, except per share dollar amounts, unless otherwise noted. The following will be discussed and analyzed:

•Overview of ~~First~~Second Quarter 2020 Results

•Impact of COVID-19

•Results of Operations and Related Information

•Liquidity and Capital Resources

•Information Concerning Forward-Looking Statements

We describe our business outside North America in two groups – Developing and Emerging Markets ("D&E") and Developed Markets. D&E markets comprise Eastern Europe, the Middle East and Africa, Latin America and Asia-Pacific, excluding Australia and South Korea. Developed Markets consist of Western and Central Europe, Australia and South Korea. We have three reportable business segments: Personal Care, Consumer Tissue and K-C Professional. These business segments are described in greater detail in Note 7 to the unaudited interim consolidated financial statements.

This section presents a discussion and analysis of our ~~first~~second quarter 2020 net sales, operating profit and other information relevant to an understanding of the results of operations. In addition, we provide commentary regarding organic sales growth, which describes the impact of changes in volume, net selling prices and product mix on net sales. Change in foreign currency exchange rates and exited businesses also impact the year-over-year change in net sales. Our analysis compares the three and six months ended ~~March 31,~~June 30, 2020 results to the same ~~period~~periods in 2019.

Throughout this MD&A, we refer to financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S., or GAAP, and are therefore referred to as non-GAAP financial measures. These measures include adjusted gross and operating profit, adjusted net income, adjusted earnings per share, adjusted other (income) and expense, net and adjusted effective tax rate. We believe these measures provide our investors with additional information about our underlying results and trends, as well as insight into some of the financial measures used to evaluate management.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, and they should be read only in conjunction with our unaudited interim consolidated financial statements prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items being excluded. We compensate for these limitations by using these non-GAAP financial measures as a supplement to the GAAP measures and by providing reconciliations of the non-GAAP and comparable GAAP financial measures.

The non-GAAP financial measures exclude the following item for the relevant time periods as indicated in the reconciliations included later in this MD&A:

•2018 Global Restructuring Program - In 2018, we initiated this restructuring program to reduce our structural cost base by streamlining and simplifying our manufacturing supply chain and overhead organization. See Item 1, Note 2 to the unaudited interim consolidated financial statements for details.

Overview of ~~First~~Second Quarter 2020 Results

•Net sales of ~~$5.0~~$4.6 billion increased ~~8 percent~~slightly compared to the year-ago ~~period, including organic sales growth of 11 percent.~~period. Changes in foreign currency exchange rates reduced sales ~~by 2~~approximately 4 percent, ~~and business exits in conjunction with the 2018 Global Restructuring Program reduced~~while organic sales ~~slightly.~~increased 4 percent.

•Operating profit was ~~$904~~$925 in 2020 and ~~$655~~$670 in 2019. Net Income Attributable to Kimberly-Clark Corporation was ~~$660~~$681 in 2020 compared to ~~$454~~$485 in 2019, and diluted earnings per share were ~~$1.92~~$1.99 in 2020 compared to ~~$1.31~~$1.40 in 2019. Results in ~~2020 and 2019~~both periods include charges related to the 2018 Global Restructuring Program.

Impact of COVID-19

~~Over the past few months, we have seen the profound impact that the novel coronavirus (COVID-19) is having on human health, the global economy and society at large. Kimberly-Clark has been~~We continue to actively ~~addressing~~address the COVID-19 situation and its

impact globally, with global crisis response teams working to mitigate the potential impacts to our people and business. The impact of COVID-19 and measures to prevent its spread are affecting our business in a number of ways.

globally. We ~~continue to~~ believe that we will emerge from these events well positioned for long-term growth, though we cannot reasonably estimate the duration and severity of this global pandemic or its ultimate impact on the global economy and our business and results.

~~Health and Safety of our People and Consumers~~

~~From the beginning of the COVID-19 pandemic, our priority has been the safety of our employees and consumers.~~
We are incredibly proud of the great teamwork exhibited by our approximately 40,000 employees around the world who are doing their best to provide a steady supply of product. We have taken extra precautions globally at our office, mill and distribution center operations, which were developed in line with guidance from global health authorities, including social distancing, thermal scanning and partitions in our facilities.

We have ~~also provided employee appreciation bonuses~~experienced increased volatility in demand for some of our products as consumers adapt to front-line workers and expanded certain sick leave policies to provide our employees with additional flexibility. In addition, we implemented global travel restrictions and work-from-home policies for employees who have the ~~ability to work remotely.~~

~~Customer Demand~~

Inevolving environment. Beginning in the first quarter, particularly in March, ~~we experienced increased~~ demand across all business segments and major geographies increased as consumers increased home inventory levels in response to COVID-19. We expect ~~to see continued strong demand in~~ the ~~beginning of the second quarter in some of our businesses as retailers rebuild inventory levels, which we expect will~~increase to be followed by periods of potential demand softness and volatility as consumers use existing home inventories and demand potentially returns to more normal levels. ~~The ultimate timing and impact of this demand volatility will depend on the duration and scope of the COVID-19 pandemic, overall economic conditions and consumer preferences.~~

~~The near-term increase in demand has created operational challenges~~Demand for our distribution network, though none have had a material impact on our results to date. We have taken immediate action to accelerate production, including simplifying the number of specific product offerings we make in order to improve overall production levels, particularly in our Consumer Tissue business.

~~While our~~consumer tissue products has been elevated so far this year as more people spend more time at home. Our K-C Professional business experienced ~~strong demand in the first quarter,we expect~~ volume declines in ~~this business in~~ the ~~near term given~~second quarter reflecting the reduction in ~~global business activity with much of the population working~~away from ~~home. We expect these challenges to continue until business and economic conditions return to more normal levels.~~home demand.

~~Facilities and Supply Chain~~

During 2020, we have experienced temporary closures of certain facilities, though we have not experienced a material impact from a plant closure to date and our facilities have largely been exempt or partially exempt from government closure orders.At many of our facilities, we have been experiencing ~~reduced productivity and~~ increased employee absences, which ~~we expect to~~may continue in the current situation.

~~Throughout our supply chain, we are also facing increased operational and logistics costs, though these did not have a material impact on our first quarter results.~~We continue to place a priority on business continuity and contingency planning, including for potential extended closures of any key facilities or disruptions related to our key suppliers that might arise related to COVID-19. We may experience additional disruptions in our supply chain as the pandemic continues, though we cannot reasonably estimate the potential impact or timing of those events, and we may not be able to mitigate such impact.

As a result of the outbreak of COVID-19 and the related uncertainty and complexity of the situation, certain of our restructuring activities for our 2018 Global Restructuring Program have been delayed and we now expect these activities and the related charges will extend into 2021 rather than being completed at the end ofDuring 2020, ~~as previously planned as further described in the “2018 Global Restructuring Program” section below.~~

~~Foreign Currency Exchange Rates and Commodity Prices~~

~~During the first quarter,~~ we experienced increased volatility in foreign currency exchange rates and commodity prices, ~~in part related to the uncertainty from COVID-19,~~ as well as actions taken by governments and central banks in response to COVID-19. Certain foreign currency rates have depreciated significantly against the U.S. dollar this year, with numerous currencies in D&E markets down 20 percent through the first quarter.Commodity prices, including polymer resin and oil, have also declined year-to-date, providing some incremental benefits to our first quarter results. We expect continued volatility in foreign currency exchange rates and commodity prices during 2020, though we cannot reasonably estimate the duration or extent of that volatility.

~~Liquidity and Capital Resources~~

Given our financial strength, we expect to be able to maintain adequate liquidity as we manage through the current environment. In the first quarter, we took additional actions to provide additional liquidity and flexibility, as described in “Liquidity and Capital Resources” section below, and we will continue to actively monitor the potential impacts of COVID-19 and related events on the commercial paper and credit markets.

As we continue to manage our business in this uncertain environment, our priorities will remain the health and safety of our people, providing our essential products to consumers around the world, and prudently managing our business to deliver long-term growth.discussed below.

Results of Operations and Related Information

This section presents a discussion and analysis of our ~~first~~second quarter 2020 net sales, operating profit and other information relevant to an understanding of the results of operations.

Consolidated


Selected Financial Results	Selected Financial Results	Three Months Ended March 31											Selected Financial Results	Three Months Ended June 30								Six Months Ended June 30
		2020		2019		Percent Change			2020		2019			Percent Change		2020		2019		Percent Change
Net Sales:	Net Sales:							Net Sales:
North America	North America	$	2,601	$	2,390	+9	%	North America	$	2,623	$	2,430		+8	%	$	5,224	$	4,820	+8	%
Outside North America	Outside North America	2,484		2,315		+7	%	Outside North America	2,052		2,235			-8	%	4,536		4,550		—	%
Intergeographic sales	Intergeographic sales	(76)		(72)		N.M.		Intergeographic sales	(63)		(71)			N.M.		(139)		(143)		N.M.
Total Net Sales	Total Net Sales	5,009		4,633		+8	%	Total Net Sales	4,612		4,594			—	%	9,621		9,227		+4	%
Operating Profit:	Operating Profit:							Operating Profit:
North America	North America	659		572		+15	%	North America	769		608			+26	%	1,428		1,180		+21	%
Outside North America	Outside North America	414		303		+37	%	Outside North America	333		260			+28	%	747		563		+33	%
Corporate & Other^(a)	Corporate & Other^(a)	(155)		(216)		N.M.		Corporate & Other^(a)	(169)		(193)			N.M.		(324)		(409)		N.M.
Other (income) and expense, net^(a)	Other (income) and expense, net^(a)	14		4		N.M.		Other (income) and expense, net^(a)	8		5			+60	%	22		9		+144	%
Total Operating Profit	Total Operating Profit	904		655		+38	%	Total Operating Profit	925		670			+38	%	1,829		1,325		+38	%

Share of net income of equity companies	Share of net income of equity companies	38		27		+41	%	Share of net income of equity companies	35		33			+6	%	73		60		+22	%

Net Income Attributable to Kimberly-Clark Corporation	Net Income Attributable to Kimberly-Clark Corporation	660		454		+45	%	Net Income Attributable to Kimberly-Clark Corporation	681		485			+40	%	1,341		939		+43	%
Diluted Earnings per Share	Diluted Earnings per Share	1.92		1.31		+47	%	Diluted Earnings per Share	1.99		1.40			+42	%	3.92		2.71		+45	%

(a) Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including adjustments as indicated in the Non-GAAP Reconciliations.

N.M. - Not Meaningful

GAAP to Non-GAAP Reconciliations of Selected Financial Results


		Three Months Ended March 31, 2020														Three Months Ended June 30, 2020
		As Reported			2018 Global Restructuring Program		As Adjusted Non-GAAP				As Reported			2018 Global Restructuring Program		As Adjusted Non-GAAP
Cost of products sold	Cost of products sold	$	3,218		$	70	$	3,148		Cost of products sold	$	2,835		$	60	$	2,775
Gross Profit	Gross Profit	1,791			(70)		1,861			Gross Profit	1,777			(60)		1,837
Marketing, research and general expenses	Marketing, research and general expenses	873			23		850			Marketing, research and general expenses	844			27		817

Operating Profit	Operating Profit	904			(93)		997			Operating Profit	925			(87)		1,012

Provision for income taxes	Provision for income taxes	(197)			18		(215)			Provision for income taxes	(199)			15		(214)
Effective tax rate	Effective tax rate	23.6		%	—		23.2		%	Effective tax rate	23.2		%	—		22.7		%

Share of net income of equity companies										Share of net income of equity companies	35			(1)		36
Net income attributable to noncontrolling interests	Net income attributable to noncontrolling interests	(15)			1		(16)			Net income attributable to noncontrolling interests	(11)			1		(12)
Net Income Attributable to Kimberly-Clark Corporation	Net Income Attributable to Kimberly-Clark Corporation	660			(74)		734			Net Income Attributable to Kimberly-Clark Corporation	681			(72)		753
Diluted Earnings per Share^(a)	Diluted Earnings per Share^(a)	1.92			(0.22)		2.13			Diluted Earnings per Share^(a)	1.99			(0.21)		2.20


	Three Months Ended June 30, 2019
	As Reported			2018 Global Restructuring Program		As Adjusted Non-GAAP
Cost of products sold	$	3,108		$	102	$	3,006
Gross Profit	1,486			(102)		1,588
Marketing, research and general expenses	811			17		794

Operating Profit	670			(119)		789

Provision for income taxes	(132)			27		(159)
Effective tax rate	22.2		%	—		22.3		%


Net Income Attributable to Kimberly-Clark Corporation	485			(92)		577
Diluted Earnings per Share^(a)	1.40			(0.27)		1.67


	Six Months Ended June 30, 2020
	As Reported			2018 Global Restructuring Program		As Adjusted Non-GAAP
Cost of products sold	$	6,053		$	130	$	5,923
Gross Profit	3,568			(130)		3,698
Marketing, research and general expenses	1,717			50		1,667

Operating Profit	1,829			(180)		2,009

Provision for income taxes	(396)			33		(429)
Effective tax rate	23.4		%	—		22.9		%
Share of net income of equity companies	73			(1)		74
Net income attributable to noncontrolling interests	(26)			2		(28)
Net Income Attributable to Kimberly-Clark Corporation	1,341			(146)		1,487
Diluted Earnings per Share^(a)	3.92			(0.43)		4.34

1617


		Three Months Ended March 31, 2019											Six Months Ended June 30, 2019
		As Reported		2018 Global Restructuring Program	As Adjusted Non-GAAP			As Reported			2018 Global Restructuring Program		As Adjusted Non-GAAP
Cost of products sold	Cost of products sold	3,205		125	3,080		Cost of products sold	$	6,313		$	227	$	6,086
Gross Profit	Gross Profit	1,428		(125)	1,553		Gross Profit	2,914			(227)		3,141
Marketing, research and general expenses	Marketing, research and general expenses	769		28	741		Marketing, research and general expenses	1,580			45		1,535
Other (income) and expense, net	Other (income) and expense, net	4		(1)	5		Other (income) and expense, net	9			(1)		10
Operating Profit	Operating Profit	655		(152)	807		Operating Profit	1,325			(271)		1,596

Provision for income taxes	Provision for income taxes	(143)		31	(174)		Provision for income taxes	(275)			58		(333)
Effective tax rate	Effective tax rate	24.6	%	—	23.7	%	Effective tax rate	23.4		%	—		23.0		%
Share of net income of equity companies	Share of net income of equity companies	27		(2)	29		Share of net income of equity companies	60			(2)		62
Net income attributable to noncontrolling interests	Net income attributable to noncontrolling interests	(12)		1	(13)		Net income attributable to noncontrolling interests	(22)			1		(23)
Net Income Attributable to Kimberly-Clark Corporation	Net Income Attributable to Kimberly-Clark Corporation	454		(122)	576		Net Income Attributable to Kimberly-Clark Corporation	939			(214)		1,153
Diluted Earnings per Share^(a)	Diluted Earnings per Share^(a)	1.31		(0.35)	1.66		Diluted Earnings per Share^(a)	2.71			(0.62)		3.33

(a) "As Adjusted Non-GAAP" may not equal "As Reported" plus "Adjustments" as a result of rounding.

Analysis of Consolidated Results


Net Sales	Net Sales	Percent Change For the Three Months Ended March 31, 2020	Adjusted Operating Profit	Percent Change For the Three Months Ended March 31, 2020	Net Sales	Percent Change			Adjusted Operating Profit	Percent Change
						Three Months Ended June 30	Six Months Ended June 30		Three Months Ended June 30	Six Months Ended June 30
Volume	Volume	8	Volume	18	Volume	2	5	Volume	8	13
Net Price	Net Price	1	Net Price	6	Net Price	1	1	Net Price	7	6
Mix/Other	Mix/Other	1	Input Costs	14	Mix/Other	1	1	Input Costs	10	12
Currency	Currency	(2)	Cost Savings^(c)	16	Currency	(4)	(3)	Cost Savings^(c)	22	19
Total^(a)	Total^(a)	8	Currency Translation	(2)	Total^(a)	—	4	Currency Translation	(2)	(2)
			Other^(d)	(28)				Other^(d)	(17)	(22)
Organic^(b)	Organic^(b)	11	Total	24	Organic^(b)	4	7	Total	28	26

(a) Total may not equal the sum of volume, net price, mix/other and currency due to rounding.

(b) Combined impact of changes in volume, net price and mix/other.

(d) Includes impact of changes in product mix, marketing, research and general expenses, foreign currency transaction effects and other manufacturing costs.

Net sales in the second quarter of ~~$5.0~~$4.6 billion increased ~~8 percent~~slightly compared to the year-ago period. Changes in foreign currency exchange rates reduced sales byapproximately 4 percent, while organic sales increased 4 percent. Volumes increased 2 percent and business exits in conjunction with the 2018 Global Restructuring Program reduced sales slightly. Organic sales increased 11 percent. Volumes increased more than 8 percent, driven by increased shipments to support consumer stock up related to the global outbreak of COVID-19. The stock up impacted all business segments, in particular consumer tissue, and all major geographies. Changeschanges in net selling prices and product mix each ~~improved~~increased sales by 1 percent. In North America, organic sales increased 1112 percent in consumer products ~~and 6~~but fell 3 percent in K-C Professional. Outside North America, organic sales rose 93 percent in developed markets but fell 3 percent in D&E markets, ~~and 15 percent in developed markets.~~driven by Latin America.

Operating profit in the ~~first~~second quarter was ~~$904~~$925 in 2020 and ~~$655~~$670 in 2019. Results in both periods include charges related to the 2018 Global Restructuring Program. ~~First~~Second quarter adjusted operating profit was ~~$997~~$1,012 in 2020 and ~~$807~~$789 in 2019. Results benefited from organic sales growth, ~~$100~~$120 of cost savings from our FORCE program and ~~$25~~$55 of cost savings from the 2018 Global Restructuring Program. Input costs decreased ~~$115,~~$80, driven by pulp, while other manufacturing costs rose year-on-year. Advertising spending increased and ~~selling,~~ general and administrative costs were also higher compared to the prior year. Foreign currency translation effects reduced operating profit by $15 and transaction effects also negatively impacted the comparison.

The ~~first~~second quarter ~~effective tax rate was 23.6 percent in 2020 and 24.6 percent in 2019. The first quarter adjusted~~ effective tax rate was 23.2 percent in 2020 and ~~23.7~~22.2 percent in 2019. The second quarter adjusted effective tax rate was 22.7 percent in 2020 and 22.3 percent in 2019.

1718

Our share of net income of equity companies in the ~~first~~second quarter was ~~$38~~$35 in 2020 and ~~$27~~$33 in 2019. The ~~improvement was driven by volume~~results benefited from organic sales growth and lower input ~~costs.~~costs, partially offset by negative foreign currency effects.

Diluted net income per share for the ~~first~~second quarter of 2020 was ~~$1.92~~$1.99 in 2020 and ~~$1.31~~$1.40 in 2019. ~~First~~Second quarter adjusted earnings per share were ~~$2.13~~$2.20 in 2020, an increase of 2832 percent compared to ~~$1.66~~$1.67 in 2019.

Year-to-date net sales of $9.6 billion increased 4 percent compared to the year ago period. Organic sales increased 7 percent, as volumes rose 5 percent and changes in net selling prices and product mix each increased sales by 1 percent. Changes in foreign currency exchange rates reduced sales by 3 percent and business exits in conjunction with the 2018 Global Restructuring Program reduced sales slightly. Year-to-date operating profit was $1,829 in 2020 and $1,325 in 2019. Results in both periods include charges related to the 2018 Global Restructuring Program. Year-to-date adjusted operating profit was $2,009 in 2020 and $1,596 in 2019. Results benefited from organic sales growth, $220 of FORCE cost savings and $80 of cost savings from the 2018 Global Restructuring Program. Input costs decreased $195, driven by pulp. The comparison was impacted by unfavorable foreign currency effects, other manufacturing cost increases, increased advertising spending and higher general and administrative costs. Through six months, diluted net income per share was $3.92 in 2020 and $2.71 in 2019. Year-to-date adjusted earnings per share were $4.34 in 2020 and $3.33 in 2019.

Results by Business Segments

Personal Care


		Three Months Ended March 31								Three Months Ended March 31								Three Months Ended June 30					Six Months Ended June 30								Three Months Ended June 30		Six Months Ended June 30
		2020		2019				2020		2019				2020		2019		2020		2019			2020		2019		2020		2019
Net Sales	Net Sales	$	2,422	$	2,275		Operating Profit	$	527	$	484		Net Sales	$	2,229	$	2,286	$	4,651	$	4,561	Operating Profit	$	519	$	485	$	1,046	$	969

Net Sales	Net Sales			Percent Change			Operating Profit			Percent Change			Net Sales	Percent Change						Percent Change					Operating Profit		Percent Change					Percent Change
Volume	Volume			7			Volume			14			Volume			—				4		Volume			3				8
Net Price	Net Price					1		Net Price				4					Net Price					—			1		Net Price					1	3
Mix/Other	Mix/Other					2		Input Costs				3					Mix/Other					2			2		Input Costs					4	3
Currency	Currency					(3)		Cost Savings^(c)				13					Currency					(5)			(4)		Cost Savings^(c)					15	14
Total^(a)	Total^(a)					6		Currency Translation				(2)					Total^(a)					(2)			2		Currency Translation					(2)	(2)
								Other^(d)				(23)															Other^(d)					(14)	(18)
Organic^(b)	Organic^(b)					9		Total				9					Organic^(b)					2			6		Total					7	8

(a) Total may not equal the sum of volume, net price, mix/other and currency due to rounding.

(b) Combined impact of changes in volume, net price and mix/other.

(d) Includes impact of changes in product mix, marketing, research and general expenses, foreign currency transaction effects and other manufacturing costs.

~~Net~~Second quarter net sales in North America increased 104 percent. Volumes increased 72 percent, and changes in product mix and net selling prices increased sales by 2 percent and 1 percent, respectively. ~~Volumes increased double-digits in adult care, high-single digits in feminine care~~The improved volumes and ~~mid-single digits in baby and child care. The changes in~~ product mix ~~and net selling prices~~ were driven by baby and child care.

Net sales in D&E markets ~~increased 3 percent despite a 6 percent negative impact from changes~~decreased 9 percent. Changes in foreign currency exchange ~~rates. Volumes increased 6 percent, and changes~~rates reduced sales 11 percent. Changes in product mix improved sales by 2 percent and volumes rose slightly, while changes in net selling prices ~~increased~~decreased sales by ~~3 percent and~~ 1 ~~percent, respectively. Volumes increased in Asia-Pacific, Eastern Europe, the Middle East and South Africa.~~percent.

Net sales in developed markets outside North ~~America. increased 5 percent despite a 5 percent negative impact from changes~~America decreased 8 percent. Changes in foreign currency exchange ~~rates.~~rates reduced sales by 5 percent. Volumes ~~increased 8~~fell 6 percent, ~~driven by Australia and Western/Central Europe, and~~while the combined impact of changes in net selling prices and product mix ~~each~~ increased sales by 13 percent.

Operating profit of ~~$527~~$519 increased 97 percent. The comparison benefited from organic sales growth, cost savings and lower input costs. Results were impacted by ~~higher advertising spending, increased selling, general and administrative costs,~~unfavorable foreign currency effects, other manufacturing cost increases, higher advertising spending and ~~unfavorable currency effects.~~increased general and administrative costs.

1819

Consumer Tissue


		Three Months Ended March 31								Three Months Ended March 31								Three Months Ended June 30					Six Months Ended June 30								Three Months Ended June 30		Six Months Ended June 30
		2020		2019				2020		2019				2020		2019		2020		2019			2020		2019		2020		2019
Net Sales	Net Sales	$	1,723	$	1,526		Operating Profit	$	365	$	241		Net Sales	$	1,645	$	1,472	$	3,368	$	2,998	Operating Profit	$	428	$	221	$	793	$	462

Net Sales	Net Sales			Percent Change			Operating Profit			Percent Change			Net Sales	Percent Change						Percent Change					Operating Profit		Percent Change					Percent Change
Volume	Volume			14			Volume			26			Volume			14				14		Volume			41				33
Net Price	Net Price					1		Net Price				6					Net Price					1			1		Net Price					9	7
Mix/Other	Mix/Other					—		Input Costs				32					Mix/Other					(1)			—		Input Costs					27	30

Currency	Currency					(2)		Cost Savings^(c)				19					Currency					(3)			(2)		Cost Savings^(c)					33	26
Total^(a)	Total^(a)					13		Currency Translation				(1)					Total^(a)					12			12		Currency Translation					(2)	(1)
								Other^(d)				(31)															Other^(d)					(14)	(23)
Organic^(b)	Organic^(b)					14		Total				51					Organic^(b)					14			14		Total					94	72

(a) Total may not equal the sum of volume, net price, mix/other and currency due to rounding.

(b) Combined impact of changes in volume, net price and mix/other.

(d) Includes impact of changes in marketing, research and general expenses, foreign currency transaction effects and other manufacturing costs.

~~Net~~Second quarter net sales in North America increased 1222 percent. Volumes rose 1024 percent and changes in net selling prices ~~increased~~improved sales by 31 percent, while changes in product mix decreased sales by 12 percent. Volumes increased double-digits in all major product categories. The volume increase ~~included double-digit gains on bathroom tissue and facial tissue~~was driven by increased shipments to support higher consumer ~~stock up~~and customer demand related to the global outbreak of ~~COVID-19.~~COVID-19, including the significant increase in the number of people working from home.

Net sales in D&E markets ~~increased 10~~decreased 9 percent ~~despite~~including a 37 percent negative impact from changes in foreign currency exchange rates. Volumes ~~increased 12~~decreased 2 percent and ~~changes in product mix increased sales by 2 percent, while~~ changes in net selling prices decreased sales by 1 ~~percent. Volumes~~percent, while changes in product mix increased ~~in all major geographies driven~~sales by ~~increased shipments to support consumer stock up related to the global outbreak of COVID-19.~~1 percent.

Net sales in developed markets outside North America increased 178 percent. Volumes rose 217 percent, ~~with significant increases in all markets,~~driven by South Korea and Western/Central Europe. The volume increase was driven by increased shipments to support higher consumer ~~stock up~~and customer demand related to the global outbreak of COVID-19. Changes in ~~product mix increased sales by 1 percent. Changes in foreign currency exchange rates and~~ net selling prices ~~decreased~~and product mix increased sales by 4 percent and 1 percent, respectively. Changes in foreign currency exchange rates reduced sales by 4 percent.

Operating profit of ~~$365~~$428 increased 5194 percent. Results benefited from organic sales growth, cost savings and lower input ~~costs and cost savings.~~costs. The comparison was impacted by ~~other manufacturing cost increases, higher selling, general and administrative costs,~~ increased advertising spending and unfavorable foreign currency effects.

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K-C Professional


		Three Months Ended March 31									Three Months Ended March 31													Three Months Ended June 30								Six Months Ended June 30							Three Months Ended June 30			Six Months Ended June 30
		2020		2019				2020			2019						2020			2019				2020			2019					2020	2019		2020		2019
Net Sales	Net Sales	$	848	$	817		Operating Profit		$	181		$	150			Net Sales		$	724			$	821		$	1,572		$	1,638		Operating Profit		$	155	$	162	$	336	$	312

Net Sales	Net Sales			Percent Change			Operating Profit				Percent Change				Net Sales		Percent Change										Percent Change						Operating Profit		Percent Change						Percent Change
Volume	Volume			4			Volume				8				Volume					(16)							(6)			Volume			(24)				(9)
Net Price	Net Price					2		Net Price						9							Net Price									4			3		Net Price						18	14
Mix/Other	Mix/Other					1		Input Costs						13							Mix/Other									3			2		Input Costs						2	8
Exited Businesses^(e)	Exited Businesses^(e)					(1)		Cost Savings^(c)						12							Exited Businesses^(e)									—			(1)		Cost Savings^(c)						16	14
Currency	Currency					(2)		Currency Translation						(2)							Currency									(2)			(2)		Currency Translation						(2)	(2)
Total^(a)	Total^(a)					4		Other^(d)						(19)							Total^(a)									(12)			(4)		Other^(d)						(14)	(17)
Organic^(b)	Organic^(b)					7		Total						21							Organic^(b)									(10)			(1)		Total						(4)	8

(a) Total may not equal the sum of volume, net price, mix/other, exited businesses and currency due to rounding.

(b) Combined impact of changes in volume, net price and mix/other.

(d) Includes impact of changes in product mix, marketing, research and general expenses, foreign currency transaction effects and other manufacturing costs.

(e) Exited businesses in conjunction with the 2018 Global Restructuring Program.

~~Net~~Second quarter net sales in North America ~~increased 5~~decreased 3 percent. Volumes ~~increased 4~~decreased 9 percent, as double-digit declines in washroom and ~~changes~~safety products were partially offset by double-digit increases in wipers and other products. Changes in net selling prices and product mix ~~each~~ increased sales by ~~1 percent. Business exits in conjunction with the 2018 Global Restructuring Program reduced sales by 1 percent.~~4 percent and 3 percent, respectively.

Net sales in D&E markets ~~increased 2~~decreased 35 percent ~~despite~~including a 45 percent negative impact from changes in foreign currency exchange rates. ~~Higher volumes~~Volumes fell 32 percent, with significant declines in all major geographies, and ~~changes in net selling prices each increased sales by 3 percent, while~~ changes in product mix decreased sales by 1 percent. Changes in net selling prices increased sales by 3 percent.

Net sales in developed markets outside North America ~~increased 5~~decreased 12 percent. ~~Changes~~Volumes decreased 17 percent, while changes in product mix and net selling prices increased sales by 45 percent and ~~higher volumes and changes in net selling prices each increased sales by~~ 3 percent, ~~while~~respectively. The changes were driven by Western/Central Europe. Changes in foreign currency exchange rates ~~were unfavorable~~decreased sales by 4 percent.

Operating profit of ~~$181 increased 21~~$155 decreased 4 percent. ~~Results benefited from organic sales growth, cost savings and lower input costs.~~ The comparison was impacted by ~~higher selling, general and administrative costs and~~lower volumes, other manufacturing cost ~~increases.~~increases and unfavorable currency effects. Results benefited from increased net selling prices, improved product mix and cost savings.

2018 Global Restructuring Program

As a result of the outbreak of COVID-19 and the related uncertainty and complexity of the environment, consistent with our Form 10-Q filed on April 22, 2020, we ~~now~~ expect that some restructuring activity and the related charges will extend into 2021 rather than being completed at the end of 2020 as previously planned. Total restructuring charges to implement the program are expected to be toward the high end of the ~~previously estimated~~ range of $1.7 billion to $1.9 billion pre-tax ($1.3 billion to $1.4 billion after tax). We continue to expect the program will generate annual pre-tax cost savings of $500 to $550. We ~~continue to~~ target to achieve those savings by the end of 2021, although it is possible the full realization could occur in 2022 because of the uncertainties related to COVID-19. Savings for the first ~~three~~six months of 2020 were ~~$25,~~$80, bringing cumulative savings to ~~$325.~~$380. See Item 1, Note 2 to the unaudited interim consolidated financial statements for additional information.

Liquidity and Capital Resources

Cash Provided by Operations

Cash provided by operations was ~~$704~~$2,283 for the first ~~three~~six months of 2020 compared to ~~$317~~$926 in the prior year. The increase was driven by improved working capital, higher earnings and ~~improved working capital.~~the timing of tax payments.

Investing

During the ~~three~~six months ended ~~March 31,~~June 30, 2020, our capital spending was ~~$352~~$636 compared to ~~$316~~$569 in the prior year. We anticipate that full year capital spending will be $1.2 billion to $1.3 billion.

Financing

Our short-term debt, which consists of U.S. commercial paper with original maturities up to 90 days and/or other similar short-term debt issued by non-U.S. subsidiaries, was ~~$0.5 billion~~$93 as of ~~March 31,~~June 30, 2020 (included in Debt payable within one year on the consolidated balance sheet). The average month-end balance of short-term debt for the ~~first~~second quarter of 2020 was

~~$0.7 billion.~~ $112. These short-term borrowings provide supplemental funding for supporting our operations. The level of short-term debt generally fluctuates depending upon the amount of operating cash flows and the timing of customer receipts and payments for items such as dividends and income taxes.

At ~~March 31,~~June 30, 2020 and December 31, 2019, total debt was ~~$8.4~~$8.1 billion and $7.7 billion, respectively.

In February 2020, we issued $500 aggregate principal amount of 2.875% notes due February 7, 2050. Proceeds from the offering were used for general corporate purposes including the repayment of a portion of our commercial paper indebtedness.

In March 2020, we issued $750 aggregate principal amount of 3.10% notes due March 26, 2030. Proceeds from the offering were used for general corporate purposes including the repayment of a portion of our commercial paper indebtedness.

We maintain a $2.0 billion revolving credit facility which expires in June 2023 and a $750 revolving credit facility which expires in June ~~2020.~~2021. These facilities, currently unused, support our commercial paper program, and would provide liquidity in the event our access to the commercial paper markets is unavailable for any reason.

In July 2017, the United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate (LIBOR), announced that it intends to phase out LIBOR by the end of 2021. We are currently evaluating the potential effect of the eventual replacement of the LIBOR, but we do not expect the effect to be material. Accounting guidance has been recently issued to ease the transition to alternative reference rates from a financial reporting perspective. See Item 1, Note 1 to the unaudited interim consolidated financial statements for details.

We repurchase shares of Kimberly-Clark common stock from time to time pursuant to publicly announced share repurchase programs. During the first ~~three~~six months of 2020, we repurchased ~~1.6~~1.9 million shares of our common stock at a cost of ~~$224~~ $263 through a broker in the open market. We ~~are~~ temporarily ~~suspending~~suspended our share repurchase program effective April 24, 2020 ~~for at least the remainder of the second quarter~~ to enhance flexibility in the current ~~environment. We do not expect any change in our plans for our quarterly dividend, which was increased by 3.9 percent in January 2020. We~~environment, but we will ~~continue to monitor the environment and further assess~~be restarting our share repurchase program ~~later~~effective July 24, 2020 with full year share repurchases anticipated to be in the ~~year.~~range of $700 to $900.

K-C Argentina began accounting for their operations as highly inflationary effective July 1, 2018, as required by GAAP. Under highly inflationary accounting, K-C Argentina’s functional currency became the U.S. dollar, and its income statement and balance sheet have been measured in U.S. dollars using both current and historical rates of exchange. The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net and was not material. As of ~~March 31,~~June 30, 2020, K-C Argentina had a small net peso monetary position. Net sales of K-C Argentina were approximately 1 percent of our consolidated net sales for the three and six months ended ~~March 31,~~June 30, 2020.

We believe that our ability to generate cash from operations and our capacity to issue short-term and long-term debt are adequate to fund working capital, payments for our 2018 Global Restructuring Program, capital spending, pension contributions, dividends and other needs for the foreseeable future. Further, we do not expect restrictions or taxes on repatriation of cash held outside of the U.S. to have a material effect on our overall business, liquidity, financial condition or results of operations for the foreseeable future.

Information Concerning Forward-Looking Statements

Certain matters contained in this report concerning the business outlook, including the anticipated cost savings from our FORCE program, costs and savings from the 2018 Global Restructuring Program, cash flow and uses of cash, growth initiatives, innovations, marketing and other spending, net sales, anticipated currency rates and exchange risks, including the impact in Argentina, raw material, energy and other input costs, effective tax rate, contingencies and anticipated transactions of Kimberly-Clark, including dividends, share repurchases and pension contributions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based upon management's expectations and beliefs concerning future events impacting Kimberly-Clark. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to publicly update them.

The assumptions used as a basis for the forward-looking statements include many estimates that, among other things, depend on the achievement of future cost savings and projected volume increases. In addition, many factors outside our control, including pandemics (including the ongoing COVID-19 outbreak), epidemics, fluctuations in foreign currency exchange rates, the prices and availability of our raw materials, potential competitive pressures on selling prices for our products, energy costs, our ability to maintain key customer relationships and retail trade customer actions, as well as general economic and political conditions globally and in the markets in which we do business, could affect the realization of these estimates.

For a description of certain factors that could cause our future results to differ from those expressed in these forward-looking statements, see Item 1A ~~of this report~~ entitled "Risk Factors" in each of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and ~~Item 1A of~~ our Annual Report on Form 10-K for the year ended December 31, ~~2019 entitled "Risk Factors."~~2019. Other factors not presently known to us or that we presently consider immaterial could also affect our business operations and financial results.

Item 4. Controls and Procedures

As of ~~March 31,~~June 30, 2020, an evaluation was performed under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective as of ~~March 31,~~June 30, 2020. There were no changes in our internal control over financial reporting during the quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

~~Item 1A. Risk Factors~~

Our business faces many risks and uncertainties that we cannot control. The risk factors described in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019, as revised below, should be carefully considered, together with the other information contained or incorporated by reference in this Quarterly Report on Form 10-Q and in our other filings with the SEC, in connection with evaluating the Company, our business, and the forward-looking statements contained in this Quarterly Report on Form 10-Q. Other risks that we do not presently know about or that we presently believe are not material could also adversely affect us.

The risk factor described below updates the risk factors disclosed in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019, to include additional information.

~~We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and cash flows.~~

Our business and financial results may be negatively impacted by health epidemics, pandemics and similar outbreaks. The recent and rapidly spreading COVID-19 pandemic could have negative impacts on our business, including causing significant volatility in demand for our products, changes in consumer behavior and preference, disruptions in our manufacturing and supply chain operations, disruptions to our cost saving programs and restructuring initiatives, limitations on our employees’

ability to work and travel, significant changes in the economic or political conditions in markets in which we operate and related currency and commodity volatility. Despite our efforts to manage these impacts, their ultimate impact also depends on factors beyond our knowledge or control, including the duration and severity of any such outbreak and actions taken to contain its spread and mitigate its public health effects.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

We repurchase shares of Kimberly-Clark common stock from time to time pursuant to publicly announced share repurchase programs. All our share repurchases during the ~~first~~second quarter of 2020 were made through a broker in the open market.

The following table contains information for shares repurchased during the ~~first~~second quarter of 2020. None of the shares in this table were repurchased directly from any of our officers or directors.

Period (2020)
Total Number
of Shares
Purchased^(a)
Average
Price Paid
Per Share Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs Maximum Number
of Shares That May
Yet Be Purchased
Under the Plans or
Programs
January 1 to January 31 474,784 $ 141.29 30,836,128 9,163,872
February 1 to February 29 448,800 141.97 31,284,928 8,715,072
March 1 to March 31 714,900 129.88 31,999,828 8,000,172
Total 1,638,484


Period (2020)	Total Number of Shares Purchased^(a)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
April 1 to April 30	299,900	$	130.49	32,299,728	7,700,272
May 1 to May 31	—	—		32,299,728	7,700,272
June 1 to June 30	—	—		32,299,728	7,700,272
Total	299,900

(a)Share repurchases were made pursuant to a share repurchase program authorized by our Board of Directors on November 13, 2014. This program allows for the repurchase of 40 million shares in an amount not to exceed $5 billion.

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Item 6. Exhibits

(a)Exhibits

Exhibit No. (3)a. Amended and Restated Certificate of Incorporation, dated April 30, 2009, incorporated by reference to Exhibit No. (3)a of the Corporation's Current Report on Form 8-K filed on May 1, 2009.

Exhibit No. (3)b. By-Laws, as amended May 2, 2019, incorporated by reference to Exhibit No. (3)b of the Corporation's Current Report on Form 8-K filed on May 3, 2019.

Exhibit No. (4). Copies of instruments defining the rights of holders of long-term debt will be furnished to the Securities and Exchange Commission on request.

Exhibit No. (10)q.n. Form of Award Agreements under 2011 Equity Participation Plan for ~~Performance Restricted~~Nonqualified Stock ~~Units,~~Options, filed herewith.

Exhibit No. (10)s.~~First Amendment to~~r. Form of Award Agreements under 2011 Equity Participation Plan ~~effective February 12, 2020,~~ ~~incorporated by reference to Exhibit No. (10)s of the Corporation's Annual Report on Form 10-K~~ for ~~the year ended December 31, 2019.~~Time-Vested Restricted Stock Units, filed herewith.

Exhibit No. (31)a. Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), filed herewith.

Exhibit No. (31)b. Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), filed herewith.

Exhibit No. (32)a. Certification of Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.

Exhibit No. (32)b. Certification of Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.

Exhibit No. (101).INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

Exhibit No. (101).SCH XBRL Taxonomy Extension Schema Document

Exhibit No. (101).CAL XBRL Taxonomy Extension Calculation Linkbase Document

Exhibit No. (101).DEF XBRL Taxonomy Extension Definition Linkbase Document

Exhibit No. (101).LAB XBRL Taxonomy Extension Label Linkbase Document

Exhibit No. (101).PRE XBRL Taxonomy Extension Presentation Linkbase Document

Exhibit No. 104 The cover page from this Current Report on Form 10-Q formated as Inline XBRL

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



						KIMBERLY-CLARK CORPORATION
						(Registrant)

~~By:~~						~~/s/ Maria Henry~~
						~~Maria Henry~~
						~~Senior Vice President and~~
						~~Chief Financial Officer~~
						~~(principal financial officer)~~

By:						/s/ Andrew S. Drexler
						Andrew S. Drexler
						Vice President and Controller
						(principal accounting officer)

~~April 22,~~July 23, 2020

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