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

The 2024 Transformation Initiative is expected to be completed by the end of 2026, with total costs anticipated to be approximately $1.5 billion pre-tax. Cash costs are expected to be approximately 60% of that amount, primarily related to workforce reductions and other program costs. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. Through September 30, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $718 ($561 after-tax).


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024
Cost of products sold:
Charges for workforce reductions	$	3	$	12	$	17	$	46

Asset write-offs	7		8		27		13
Incremental depreciation	15		10		104		13
Other exit costs	9		1		21		4
Total	34		31		169		76
Marketing, research and general expenses:
Charges for workforce reductions	1		48		16		117
Other exit costs	27		45		73		91
Total	28		93		89		208
Other (income) and expense, net(a)	—		—		—		75
Nonoperating expense	—		—		3		—
Total charges(b)	62		124		261		359
Provision for income taxes	(12)		(18)		(39)		(102)
Net charges	50		106		222		257
Net charges related to noncontrolling interests	(3)		—		(7)		—
Net charges attributable to Kimberly-Clark Corporation	$	47	$	106	$	215	$	257

(a)Other (Income) and expense, net includes losses recognized for the exit of certain businesses and markets as part of the 2024 Transformation Initiative.

(b)We do not include 2024 Transformation Initiative charges within our segment operating results. Total impact of these charges to the NA and IPC segments were $32 and $36, respectively, for the three months ended September 30, 2025, $60 and $31, respectively, for the three months ended September 30, 2024, $117 and $127, respectively, for the nine months ended September 30, 2025, and $125 and $160, respectively, for the nine months ended September 30, 2024, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 11.


	2025
2024 Transformation Initiative liabilities as of January 1	$	130
Charges for workforce reductions and other cash exit costs	126
Cash payments	(183)
Currency and other	(10)
2024 Transformation Initiative liabilities as of September 30	$	63