v3.25.3
Description Of Business Segments
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Business Segment Information Segment Reporting
The Company's continuing operations are organized into two reportable segments defined by geographic region: North America ("NA") and International Personal Care ("IPC").
These segments differ from those used in prior periods due to changes to our reportable segments effective in the fourth quarter of 2024 (refer to our Annual Report on Form 10-K for further details) and the following changes effective in the second quarter of 2025:
IFP Transaction
As a result of the IFP Transaction discussed in Notes 1 and 3, the results of operations and applicable assets and liabilities of the IFP Business are reported as discontinued operations in the Company's financial statements and are excluded from segment results for all periods presented. This includes certain costs that were previously allocated to the IPC segment that relate to assets or activities that are part of the IFP Transaction. These costs have been removed from the results of the IPC segment and are reported as discontinued operations. Additionally, certain operations and commercial activities of the former IFP segment retained by K-C are now reported in the NA and IPC segments.
Corporate and Other
Corporate and Other was updated for all periods presented to include the following:
•Operations of the former IFP segment that were divested prior to the IFP Transaction and therefore not reported as discontinued operations.
•Costs previously allocated to the former IFP segment that are not directly attributable to the operations included in the IFP Transaction and therefore are not reported as discontinued operations.
The reportable segments were determined in accordance with how our Chief Executive Officer, who is our chief operating decision maker ("CODM"), develops and executes 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. The primary measure of segment profitability utilized by our CODM is segment operating profit. Our CODM uses this measure to assess the operating results and performance of our segments, perform analytical comparisons to budget and allocate resources to each segment. Segment operating profit excludes Corporate & Other, which primarily encompasses certain unallocated general corporate expenses, impairment charges, one-time (gains) or losses associated with acquisitions and divestitures, costs related to our reorganization activities that are not associated with the ongoing operations of the segments, certain operations of the former IFP segment that were divested prior to the IFP Transaction, and costs previously allocated to the former IFP segment that aren't reported as discontinued operations. Our CODM does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment.
The principal sources of revenue in each segment are described below:
•North America consists of products encompassing each of our five global daily-need categories across consumer and professional channels including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers and other related products. These products are sold under the Huggies, Pull-Ups, GoodNites, Kotex, Poise, Depend, Kleenex, Scott, Cottonelle, Viva, Wypall and other brand names.
•International Personal Care consists of three core categories — Baby & Child Care, Adult Care and Feminine Care, including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear and other related products. These products are sold under the Huggies, Kotex, Goodfeel, Intimus, Depend and other brand names.
The tables below present net sales and the significant expense categories that are included in Segment Operating Profit and regularly provided to our CODM:
Three Months Ended September 30, 2025
NAIPCTotal
Segment Net Sales$2,714 $1,436 $4,150 
Corporate & Other— 
Total Net Sales$4,150 
Cost of Products Sold1,655 957 2,612 
Advertising and Promotion Expense184 90 274 
Research, Selling and General Expense235 173 408 
Other (Income) and Expense, net(a)
— 2 2 
Segment Operating Profit$640 $214 $854 
Corporate & Other(233)
Total Operating Profit$621 
Nine Months Ended September 30, 2025
NAIPCTotal
Segment Net Sales$8,112 $4,255 $12,367 
Corporate & Other— 
Total Net Sales$12,367 
Cost of Products Sold4,860 2,830 7,690 
Advertising and Promotion Expense519 293 812 
Research, Selling and General Expense760 529 1,289 
Other (Income) and Expense, net(a)
— 6 6 
Segment Operating Profit$1,973 $597 $2,570 
Corporate & Other(726)
Total Operating Profit$1,844 
Three Months Ended September 30, 2024
NAIPCTotal
Segment Net Sales$2,735 $1,409 $4,144 
Corporate & Other— 
Total Net Sales$4,144 
Cost of Products Sold1,615 924 2,539 
Advertising and Promotion Expense205 101 306 
Research, Selling and General Expense274 182 456 
Other (Income) and Expense, net(a)
— 1 1 
Segment Operating Profit$641 $201 $842 
Corporate & Other184 
Total Operating Profit$1,026 
(a)    Other (income) and expense, net primarily includes the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where we have adopted highly inflationary accounting.
Nine Months Ended September 30, 2024
NAIPCTotal
Segment Net Sales$8,294 $4,362 $12,656 
Corporate & Other45 
Total Net Sales$12,701 
Cost of Products Sold4,869 2,837 7,706 
Advertising and Promotion Expense581 311 892 
Research, Selling and General Expense852 541 1,393 
Other (Income) and Expense, net(a)
— 12 12 
Segment Operating Profit$1,992 $661 $2,653 
Corporate & Other(373)
Total Operating Profit$2,280 
(a)    Other (income) and expense, net primarily includes the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where we have adopted highly inflationary accounting.
Depreciation and amortization expense by segment was:
Three Months Ended
September 30		Nine Months Ended
September 30
2025202420252024
NA$115 $108 $343 $318 
IPC61 49 196 144 
Total Segment Depreciation and Amortization176 157 539 462 
Corporate & Other— 2 9 6 
Total(a)
$176 $159 $548 $468 
(a)    Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations.
Capital spending by segment was:
Three Months Ended
September 30		Nine Months Ended
September 30
2025202420252024
NA$181 $100 $465 $317 
IPC36 34 107 111 
Total Segment Capital Spending217 134 572 428 
Corporate & Other96 1 96 5 
Total(a)
$313 $135 $668 $433 
(a)    Excludes discontinued operations. See Note 3 for capital spending of discontinued operations.
Sales of Principal Products:
Three Months Ended
September 30		Nine Months Ended
September 30
2025202420252024
Baby and Child Care$1,685 $1,721 $5,090 $5,308 
Family Care1,036 989 3,060 2,960 
Professional474 509 1,385 1,668 
Adult Care490 466 1,458 1,384 
Feminine Care431 437 1,286 1,317 
All other34 22 88 64 
Total$4,150 $4,144 $12,367 $12,701