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.

During the second quarter of 2026, our Board of Directors approved an extension of the 2024 Transformation Initiative through the end of 2028. Total pre-tax costs are anticipated to be approximately $1.5 billion, with cash costs 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 June 30, 2026, cumulative pre-tax charges for the 2024 Transformation Initiative were $913 ($706 after-tax).


	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
Cost of products sold:
Charges for workforce reductions	$	—	$	—	$	3	$	14

Asset write-offs	16		20		20		20
Incremental depreciation	—		57		31		89
Other exit costs	6		5		10		12
Total	22		82		64		135
Marketing, research and general expenses:
Charges for workforce reductions	6		13		15		15
Other exit costs	27		26		48		46
Total	33		39		63		61
Other (income) and expense, net(a)	(1)		—		(22)		—
Nonoperating expense	—		1		—		3
Total charges(b)	54		122		105		199
Provision for income taxes	(14)		(27)		(33)		(27)
Net charges	40		95		72		172
Net charges related to noncontrolling interests	—		(4)		(1)		(4)
Net charges attributable to Kimberly-Clark Corporation	$	40	$	91	$	71	$	168

(a)Other (income) and expense, net includes gains from the sale of manufacturing facilities and associated real estate as part of the 2024 Transformation Initiative.

(b)We do not include 2024 Transformation Initiative charges within our segment operating results. Total impact of these charges to the NA segment would have been $45 and $101 for the three and six months ended June 30, 2026, respectively (IPC segment amount was not material); $58 and $71 to the NA and IPC segments, respectively, for the three months ended June 30, 2025; and $85 and $91 to the NA and IPC segments, respectively, for the six months ended June 30, 2025, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 9.


	Total
Liabilities as of December 31, 2025	$	62
Charges for workforce reductions and other cash exit costs	76
Cash payments	(84)
Currency and other	(6)
Liabilities as of June 30, 2026	$	48