Description Of Business Segments (Tables)

9 Months Ended

Sep. 30, 2025

Information Concerning Consolidated Operations by Business Segment

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
	NA		IPC		Total
Segment Net Sales	$	2,714	$	1,436	$	4,150
Corporate & Other					—
Total Net Sales					$	4,150

Cost of Products Sold	1,655		957		2,612
Advertising and Promotion Expense	184		90		274
Research, Selling and General Expense	235		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
	NA		IPC		Total
Segment Net Sales	$	8,112	$	4,255	$	12,367
Corporate & Other					—
Total Net Sales					$	12,367

Cost of Products Sold	4,860		2,830		7,690
Advertising and Promotion Expense	519		293		812
Research, Selling and General Expense	760		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
	NA		IPC		Total
Segment Net Sales	$	2,735	$	1,409	$	4,144
Corporate & Other					—
Total Net Sales					$	4,144

Cost of Products Sold	1,615		924		2,539
Advertising and Promotion Expense	205		101		306
Research, Selling and General Expense	274		182		456
Other (Income) and Expense, net(a)	—		1		1
Segment Operating Profit	$	641	$	201	$	842
Corporate & Other					184
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
	NA		IPC		Total
Segment Net Sales	$	8,294	$	4,362	$	12,656
Corporate & Other					45
Total Net Sales					$	12,701

Cost of Products Sold	4,869		2,837		7,706
Advertising and Promotion Expense	581		311		892
Research, Selling and General Expense	852		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

^[1]

Sales of Principal Products

Sales of Principal Products:


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024
Baby and Child Care	$	1,685	$	1,721	$	5,090	$	5,308
Family Care	1,036		989		3,060		2,960
Professional	474		509		1,385		1,668
Adult Care	490		466		1,458		1,384
Feminine Care	431		437		1,286		1,317
All other	34		22		88		64
Total	$	4,150	$	4,144	$	12,367	$	12,701

[1]

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
	NA		IPC		Total
Segment Net Sales	$	2,714	$	1,436	$	4,150
Corporate & Other					—
Total Net Sales					$	4,150

Cost of Products Sold	1,655		957		2,612
Advertising and Promotion Expense	184		90		274
Research, Selling and General Expense	235		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
	NA		IPC		Total
Segment Net Sales	$	8,112	$	4,255	$	12,367
Corporate & Other					—
Total Net Sales					$	12,367

Cost of Products Sold	4,860		2,830		7,690
Advertising and Promotion Expense	519		293		812
Research, Selling and General Expense	760		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
	NA		IPC		Total
Segment Net Sales	$	2,735	$	1,409	$	4,144
Corporate & Other					—
Total Net Sales					$	4,144

Cost of Products Sold	1,615		924		2,539
Advertising and Promotion Expense	205		101		306
Research, Selling and General Expense	274		182		456
Other (Income) and Expense, net(a)	—		1		1
Segment Operating Profit	$	641	$	201	$	842
Corporate & Other					184
Total Operating Profit					$	1,026


	Nine Months Ended September 30, 2024
	NA		IPC		Total
Segment Net Sales	$	8,294	$	4,362	$	12,656
Corporate & Other					45
Total Net Sales					$	12,701

Cost of Products Sold	4,869		2,837		7,706
Advertising and Promotion Expense	581		311		892
Research, Selling and General Expense	852		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

Depreciation and amortization expense by segment was:


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024
NA	$	115	$	108	$	343	$	318
IPC	61		49		196		144
Total Segment Depreciation and Amortization	176		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
	2025		2024		2025		2024
NA	$	181	$	100	$	465	$	317
IPC	36		34		107		111
Total Segment Capital Spending	217		134		572		428
Corporate & Other	96		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
	2025		2024		2025		2024
Baby and Child Care	$	1,685	$	1,721	$	5,090	$	5,308
Family Care	1,036		989		3,060		2,960
Professional	474		509		1,385		1,668
Adult Care	490		466		1,458		1,384
Feminine Care	431		437		1,286		1,317
All other	34		22		88		64
Total	$	4,150	$	4,144	$	12,367	$	12,701