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 amounts, unless otherwise noted. The following will be discussed and analyzed:

• Overview of Third Quarter 2024 Results

• 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 9 to the unaudited interim consolidated financial statements.

On March 27, 2024, we announced the 2024 Transformation Initiative designed to sharpen our strategic focus through a new operating model that leverages three synergistic forces:

• Accelerating pioneering innovation to capture significant growth available in our categories by investing in science and technology to satisfy unmet and evolving consumer needs,

• Optimizing our margin structure to deliver superior consumer propositions and implement initiatives and deploy technology and data analytics designed to create a fast, adaptable, integrated supply chain with greater visibility that can deliver continuous improvement, and

• Wiring our organization for growth to drive agility, speed, and focused execution that extends our competitive advantages further into the future.

The 2024 Transformation Initiative is intended to improve our focus on growth and reduce our structural cost base by reorganizing into three new business segments, making the corporate and regional overhead cost structures more efficient and optimizing our global supply chain. 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 transformation initiative are being finalized for implementation, and accounting for such actions will commence when the actions are authorized for execution. We expect to complete the transition to the new organizational structure by the end of 2024, and the transformation initiative is expected to be completed by the end of 2026. Total pre-tax savings are expected to be $3.0 billion in gross productivity; inclusive of input cost and manufacturing cost savings, and $200 in selling, general and administrative expenses. Total costs are anticipated to be approximately $1.5 billion pre-tax. Cash costs are expected to be approximately half of that amount, primarily related to workforce reductions. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. For the three months ended September 30, 2024, total transformation initiative charges were $124 pre-tax ($106 after-tax). For the nine months ended September 30, 2024, total transformation initiative charges were $359 pre-tax ($257 after-tax).

On July 1, 2024, we completed the sale transaction that was announced on April 7, 2024, of the personal protective equipment ("PPE") business included in our K-C Professional business segment for total consideration of $635, including the initial purchase price of $640 less working capital and other closing adjustments of $5. The transaction included Kimtech branded products, such as gloves, apparel and masks, and KleenGuard branded products, such as gloves, apparel, respirators and eyewear, which serve a variety of scientific and industrial industries globally. Upon closure of the transaction, a pre-tax gain of $566 ($453 after-tax) was recognized in Other (income) and expense, net. This gain is net of transaction costs of $14 that were determined to be directly attributable to the sale transaction.

In February 24, 2022, we completed our acquisition of a majority and controlling share of Thinx Inc. (“Thinx”), an industry leader in the reusable period and incontinence underwear category, for total consideration of $181. In the first quarter of 2023, we delivered a redemption notice to the third-party minority owner with respect to a portion of the remaining common securities of Thinx. The redemption closed in the second quarter of 2023, and we acquired additional ownership of Thinx for $48, increasing our ownership to 70%. As part of the completion of a negotiated final redemption, we acquired the remaining 30% ownership of Thinx for $47 in the fourth quarter of 2023. As the purchase of additional ownership in an already controlled subsidiary represents an equity transaction, no gain or loss was recognized in consolidated net income or comprehensive income.

On June 1, 2023, we completed the sale transaction, announced on October 24, 2022, of our Neve tissue brand and related consumer and K-C Professional tissue assets in Brazil for $212. Upon closure of the transaction, a gain of $74 pre-tax was recognized in Other (income) and expense, net. We incurred divestiture-related costs of $30 pre-tax during the three months ended June 30, 2023, which were recorded in Cost of products sold and Marketing, research and general expenses, resulting in a net benefit of $44 pre-tax ($26 after-tax).

Consistent with the humanitarian nature of our products, we manufacture and sell only essential items in Russia, such as baby diapers and feminine pads, which are critical to the health and hygiene of women, girls and babies. Beginning in March 2022, we significantly adjusted our business in Russia, substantially curtailing media, advertising and promotional activity and suspending capital investments, other than certain maintenance investments, in our sole manufacturing facility in Russia. Our Russia business has represented approximately 1% to 2% of our net global sales, operating profit and total assets. Our ability to continue our operations in Russia may change as the situation evolves. We have experienced high input costs, supply chain complexities, reduced consumer demand, restricted access to raw materials and production assets, and restricted access to financial institutions, as well as supply chain, professional services, monetary, currency, trade and payment/investment sanctions and related controls. As the business, geopolitical and regulatory environment concerning Russia evolves, we may not be able to sustain the limited manufacture and sale of our products, and our assets may be partially or fully impaired.

This section presents a discussion and analysis of our net sales, operating profit and other information relevant to an understanding of the results of operations for the three and nine months ended September 30, 2024. In addition, we provide commentary regarding organic sales growth, which describes the impact of changes in volume, product mix and net selling prices excluding prior year's impact of divestitures and business exits on net sales. Changes in foreign currency exchange rates and divestitures and business exits also impact the year-over-year change in net sales. Revenue growth management is used to describe our capability that helps optimize our consumer value proposition and thereby maximize our brands' revenue potential with consumer-centric insights. It focuses on strategic pricing decisions, price pack architecture, managing our product mix, trade promotion activity and trading

terms. Our analysis compares the three and nine months ended September 30, 2024 results to the same periods in 2023.

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 other (income) and expense, net, adjusted net income, adjusted earnings per share, 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.

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

• 2024 Transformation Initiative - In 2024, we initiated this transformation initiative to improve our focus on growth and reduce our structural cost base by reorganizing into three new business segments, making the corporate and regional overhead cost structures more efficient and optimizing our global supply chain. Results in 2024 include charges related to this program. See Item 1, Note 2 to the unaudited interim condensed consolidated financial statements for details.

• Sale of PPE business - In 2024, we recognized a gain related to the sale of our PPE business discussed above. See Item 1, Note 3 to the unaudited interim condensed consolidated financial statements for details.

• Impairment of intangible assets - In the third quarter of 2024 and the second quarter of 2023, we recognized charges related to the impairment of certain intangible assets related to Softex and Thinx. See Item 1, Note 4 to the unaudited interim condensed consolidated financial statements for details.

• Sale of Brazil tissue and K-C Professional business - In the second quarter of 2023, we recognized a net benefit related to the sale of our Brazil tissue and K-C Professional business. See Item 1, Note 3 to the unaudited interim condensed consolidated financial statements for details.

• Pension settlements - In the second quarter of 2023, pension settlement charges were recognized related to lump-sum distributions from pension plan assets exceeding the total of annual service and interest costs resulting in a recognition of deferred actuarial losses.

The income tax effect of these non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. The impact of these non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income Before Income Taxes and Equity Interests and Provision for income taxes.

Overview of Third Quarter 2024 Results

• Net sales of $5.0 billion decreased 4% compared to the prior year, while organic sales grew 1%.

• Operating profit was $1.2 billion compared to $774 in the prior year. Net Income Attributable to Kimberly-Clark Corporation was $907 compared to $587 in the prior year, and diluted earnings per share were $2.69 compared to $1.73 in the prior year. Results in the current and prior year were impacted by the activities discussed in the non-GAAP section above.

Results of Operations and Related Information

This section presents a discussion and analysis of our net sales, operating profit and other information relevant to an understanding of the results of operations for the three and nine months ended September 30, 2024.

Consolidated

Selected Financial Results			Three Months Ended September 30																		Nine Months Ended September 30
			2024						2023						Percent Change						2024						2023						Percent Change
Net Sales:
North America			$	2,779					$	2,848					-2		%				$	8,417					$	8,360					+1		%
Outside North America			2,232						2,342						-5		%				6,902						7,288						-5		%
Intergeographic sales			(59)						(58)						+2		%				(189)						(187)						+1		%
Total Net Sales			4,952						5,132						-4		%				15,130						15,461						-2		%
Operating Profit:
North America			620						684						-9		%				1,949						1,873						+4		%
Outside North America			288						253						+14		%				953						809						+18		%
Corporate & Other(a)			(318)						(128)						N.M.						(696)						(1,013)						N.M.
Other (income) and expense, net(a)			(564)						35						N.M.						(456)						(5)						N.M.
Total Operating Profit			1,154						774						+49		%				2,662						1,674						+59		%
Provision for income taxes			(223)						(157)						+42		%				(494)						(298)						+66		%
Share of net income of equity companies			48						50						-4		%				172						143						+20		%
Net Income Attributable to Kimberly-Clark Corporation			907						587						+55		%				2,098						1,255						+67		%
Diluted Earnings per Share			2.69						1.73						+55		%				6.21						3.70						+68		%

(a) Corporate & Other and Other (income) and expense, net include income and expense not associated with the ongoing operations of 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 September 30, 2024
						As Reported						2024 Transformation Initiative						Sale of PPE Business						Impairment of Intangible Assets						As Adjusted Non-GAAP
Cost of products sold						$	3,168					$	31					$	—					$	—					$	3,137
Gross Profit						1,784						(31)						—						—						1,815
Marketing, research and general expenses						1,097						93						1						—						1,003
Impairment of intangible assets						97						—						—						97						—
Other (income) and expense, net						(564)						—						(566)						—						2
Operating Profit						1,154						(124)						565						(97)						810
Provision for income taxes						(223)						18						(112)						40						(169)
Effective tax rate						20.5		%				—						—						—						22.7		%
Net Income Attributable to Kimberly-Clark Corporation						907						(106)						453						(57)						617
Diluted Earnings per Share(a)						2.69						(0.31)						1.34						(0.17)						1.83

						Three Months Ended September 30, 2023
						As Reported						Pension Settlements						As Adjusted Non-GAAP
Nonoperating expense						$	(20)					$	(4)					$	(16)
Provision for income taxes						(157)						1						(158)
Effective tax rate						22.5		%				—						22.5		%
Net Income Attributable to Kimberly-Clark Corporation						587						(3)						590
Diluted Earnings per Share(a)						1.73						(0.01)						1.74

						Nine Months Ended September 30, 2024
						As Reported						2024 Transformation Initiative						Sale of PPE Business						Impairment of Intangible Assets						As Adjusted Non-GAAP
Cost of products sold						$	9,625					$	76					$	—					$	—					$	9,549
Gross Profit						5,505						(76)						—						—						5,581
Marketing, research and general expenses						3,202						208						1						—						2,993
Impairment of intangible assets						97						—						—						97						—
Other (income) and expense, net						(456)						75						(566)						—						35
Operating Profit						2,662						(359)						565						(97)						2,553
Provision for income taxes						(494)						102						(112)						40						(524)
Effective tax rate						20.2		%				—						—						—						22.4		%
Net Income Attributable to Kimberly-Clark Corporation						2,098						(257)						453						(57)						1,959
Diluted Earnings per Share(a)						6.21						(0.76)						1.34						(0.17)						5.80

						Nine Months Ended September 30, 2023
						As Reported						Sale of Brazil Tissue and K-C Professional Business						Impairment of Intangible Assets						Pension Settlements						As Adjusted Non-GAAP
Cost of products sold						$	10,166					$	15					$	—					$	—					$	10,151
Gross Profit						5,295						(15)						—						—						5,310
Marketing, research and general expenses						2,968						15						—						—						2,953
Impairment of intangible assets						658						—						658						—						—
Other (income) and expense, net						(5)						(74)						—						—						69
Operating Profit						1,674						44						(658)						—						2,288
Nonoperating expense						(78)						—						—						(31)						(47)
Provision for income taxes						(298)						(18)						175						8						(463)
Effective tax rate						21.2		%				—						—						—						22.6		%
Net (income) loss attributable to noncontrolling interests						3						—						20						—						(17)
Net Income Attributable to Kimberly-Clark Corporation						1,255						26						(463)						(23)						1,715
Diluted Earnings per Share(a)						3.70						0.08						(1.36)						(0.07)						5.06

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

Analysis of Consolidated Results

Percent Change in Net Sales Three Months Ended						Volume						Mix/Other						Net Price						Divestitures and Business Exits**(e)**						Currency Translation						Total**(a)**						Organic**(b)**
Consolidated						—						—						1						(1)						(3)						(4)						1
North America						(1)						—						—						(2)						—						(3)						(1)
D&E Markets						—						—						8						(1)						(12)						(4)						8
Developed Markets						2						1						(5)						(1)						(1)						(4)						(2)

Percent Change in Net Sales Nine Months Ended						Volume						Mix/Other						Net Price						Divestitures and Business Exits**(e)**						Currency Translation						Total**(a)**						Organic**(b)**
Consolidated						1						1						2						(1)						(4)						(2)						4
North America						—						1						—						(1)						—						—						1
D&E Markets						1						—						10						(3)						(15)						(6)						12
Developed Markets						2						—						(4)						—						(1)						(3)						(2)

Percent Change in Adjusted Operating Profit						Volume						Net Price						Input Costs						Other Manufacturing Costs**(c)**						Currency Translation						Other**(d)**						Total
Three months ended						(2)						7						(8)						7						(4)						5						5
Nine months ended						—						16						(4)						10						(8)						(2)						12

(a) Total may not equal the sum of volume, mix/other, net price, divestitures and business exits and currency due to rounding and excludes intergeographic sales.

(b) Combined impact of changes in volume, mix/other and net price excluding prior year's impact of divestitures and business exits.

(c) Includes net impact of productivity initiatives, product and supply chain investments and other changes in cost of products sold.

(d) Includes impact of changes in product mix and marketing, research and general expenses.

(e) Impact of the sale of the Brazil tissue and K-C Professional business, sale of the PPE business and other exited businesses and markets in conjunction with the 2024 Transformation Initiative.

Consolidated net sales for the three months ended September 30, 2024 of $5.0 billion decreased 4% primarily due to unfavorable currency translation and the impacts from divestitures and business exits. Organic sales increased 1% due to higher net selling prices in hyperinflationary economies, mainly Argentina.

In North America, net sales decreased 3% primarily due to the divestiture of our PPE business and lower organic sales driven by reduced volume. Outside North America, net sales decreased 4% in D&E markets as unfavorable currency impacts were partially offset by higher organic sales, while net sales decreased 4% in Developed Markets due to lower organic sales, unfavorable currency translation, and the impact of divestitures and business exits. Organic sales increased 8% in D&E markets due to higher net selling prices in hyperinflationary economies, while Developed Markets decreased 2% primarily due to temporary energy surcharge-related price increases in the prior year, partially offset by volume and mix gains.

Consolidated net sales for the nine months ended September 30, 2024 of $15.1 billion decreased 2% compared to the prior year. Organic sales increased 4%, as changes in net selling prices, product mix, and volume increased sales by 2%, 1%, and 1%, respectively. The increase in net selling prices was driven by hyperinflationary economies, mainly Argentina. Changes in foreign currency exchange rates decreased sales by approximately 4%, while divestitures and business exits decreased sales by 1%. In North America, net sales were flat as higher organic sales were offset by the divestiture of our PPE business. Changes in net and organic sales for D&E Markets and Developed Markets were relatively consistent with those discussed for the quarter-to-date period above.

Operating profit for the three and nine months ended September 30, 2024 was $1.2 billion and $2.7 billion, respectively, compared to $774 and $1.7 billion for the prior year. Results in 2024 include charges related to the 2024 Transformation Initiative, the gain recognized for the sale of the PPE business, and charges related to the impairment of intangible assets, compared to 2023 results which include the net benefit related to the sale of the Brazil tissue and K-C Professional business and charges related to the impairment of intangible assets. Excluding these items, adjusted operating profit for the three and nine months ended September 30, 2024 was $810 and $2.6 billion, respectively, representing a 5% and 12% increase compared to the prior year. Results benefited from gross supply chain productivity savings of approximately $130 and $385, respectively, partially offset by supply chain

related investments, input cost inflation, primarily in D&E markets, unfavorable currency effects and the impact of divestitures.

Interest expense for the three and nine months ended September 30, 2024 was $67 and $206, respectively, compared to $74 and $223 for the prior year.

The effective tax rate for the three and nine months ended September 30, 2024 was 20.5% and 20.2%, respectively, compared to 22.5% and 21.2% for the prior year. The adjusted effective tax rate for the three and nine months ended September 30, 2024 was 22.7% and 22.4%, respectively, compared to 22.5% and 22.6% for the prior year.

Our share of net income of equity companies for the three and nine months ended September 30, 2024 was $48 and $172, respectively, compared to $50 and $143 for the prior year. The changes for the nine months ended were driven by Kimberly-Clark de Mexico, S.A.B. de C.V. results which benefited from volume, mix and pricing growth, productivity savings, and favorable foreign currency effects, partially offset by higher general and administrative expenses.

Diluted earnings per share for the three and nine months ended September 30, 2024 were $2.69 and $6.21, respectively, compared to $1.73 and $3.70 for the prior year. Adjusted diluted earnings per share for the three and nine months ended September 30, 2024 were $1.83 and $5.80, respectively, representing a 5% and 15% increase compared to the prior year.

Results by Business Segments

Personal Care

						Three Months Ended September 30												Nine Months Ended September 30																		Three Months Ended September 30												Nine Months Ended September 30
						2024						2023						2024						2023												2024						2023						2024						2023
Net Sales						$	2,635					$	2,700					$	8,040					$	8,089					Operating Profit						$	482					$	502					$	1,567					$	1,461

Percent Change in Net Sales Three Months Ended						Volume						Mix/Other						Net Price						Divestitures and Business Exits						Currency Translation						Total**(a)**						Organic**(b)**
Total Personal Care						—						1						3						—						(6)						(2)						3
North America						—						1						(1)						—						—						(1)						—
D&E Markets						—						—						11						—						(15)						(4)						11
Developed Markets						—						1						(4)						—						(1)						(4)						(3)

Percent Change in Net Sales Nine Months Ended						Volume						Mix/Other						Net Price						Divestitures and Business Exits						Currency Translation						Total**(a)**						Organic**(b)**
Total Personal Care						1						1						5						—						(8)						(1)						7
North America						2						1						—						—						—						2						2
D&E Markets						2						1						14						—						(20)						(3)						17
Developed Markets						(1)						—						(2)						—						(2)						(5)						(3)

Percent Change in Operating Profit						Volume						Net Price						Input Costs						Other Manufacturing Costs**(c)**						Currency Translation						Other**(d)**						Total
Three months ended						1						16						(13)						3						(6)						(5)						(4)
Nine months ended						3						27						(11)						4						(11)						(5)						7

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

(b) Combined impact of changes in volume, mix/other and net price excluding prior year's impact of divestitures and business exits.

(c) Includes net impact of productivity initiatives, product and supply chain investments and other changes in cost of products sold.

(d) Includes impact of changes in product mix and marketing, research and general expenses.

Net sales for the three months ended September 30, 2024 of $2.6 billion decreased 2% as unfavorable currency impacts of 6% were partially offset by a 3% increase in organic sales. The increase in organic sales was driven by changes in net selling prices and product mix gains of 3% and 1%, respectively. The increase in net selling prices was driven by hyperinflationary economies, mainly Argentina. Net sales for the nine months ended September 30, 2024 of $8.0 billion decreased 1% as unfavorable currency impacts were largely offset by growth in organic sales. Organic sales growth benefited from higher net selling prices in hyperinflationary economies coupled with increased volume within North America and D&E markets.

Operating profit for the three months ended September 30, 2024 of $482 decreased 4% compared to the prior year as pricing net of inflation and gross supply chain productivity savings were more than offset by unfavorable currency effects and higher advertising investments. Both pricing and the impacts of currency were primarily driven by hyperinflationary economies. Operating profit for the nine months ended September 30, 2024 of $1.6 billion increased 7% compared to the prior year. Results benefited primarily from favorable volume and mix, pricing net of inflation and gross supply chain productivity savings, partially offset by unfavorable currency effects and higher marketing, research and general expenses.

Consumer Tissue

						Three Months Ended September 30												Nine Months Ended September 30																		Three Months Ended September 30												Nine Months Ended September 30
						2024						2023						2024						2023												2024						2023						2024						2023
Net Sales						$	1,539					$	1,567					$	4,624					$	4,750					Operating Profit						$	265					$	267					$	800					$	707

Percent Change in Net Sales Three Months Ended						Volume						Mix/Other						Net Price						Divestitures and Business Exits**(e)**						Currency Translation						Total**(a)**						Organic**(b)**
Total Consumer Tissue						—						—						(1)						—						—						(2)						(1)
North America						(2)						—						1						—						—						(1)						(1)
D&E Markets						4						—						(4)						(1)						(1)						(3)						(1)
Developed Markets						3						—						(5)						—						(1)						(3)						(2)

Percent Change in Net Sales Nine Months Ended						Volume						Mix/Other						Net Price						Divestitures and Business Exits**(e)**						Currency Translation						Total**(a)**						Organic**(b)**
Total Consumer Tissue						—						—						(1)						(2)						—						(3)						(1)
North America						(1)						—						2						—						—						1						1
D&E Markets						(2)						—						(3)						(9)						(1)						(15)						(6)
Developed Markets						3						—						(5)						—						—						(2)						(2)

Percent Change in Operating Profit						Volume						Net Price						Input Costs						Other Manufacturing Costs**(c)**						Currency Translation						Other**(d)**						Total
Three months ended						(2)						(8)						5						5						(1)						—						(1)
Nine months ended						(4)						(5)						12						12						(1)						(1)						13

(a) Total may not equal the sum of volume, mix/other, net price, divestitures and business exits and currency due to rounding and excludes intergeographic sales.

(b) Combined impact of changes in volume, mix/other and net price excluding prior year's impact of divestitures and business exits.

(c) Includes net impact of productivity initiatives, product and supply chain investments and other changes in cost of products sold.

(d) Includes impact of changes in product mix and marketing, research and general expenses.

(e) Impact of the sale of the Brazil tissue and K-C Professional business and other exited businesses and markets in conjunction with the 2024 Transformation Initiative.

Net sales for the three months ended September 30, 2024 of $1.5 billion decreased 2% primarily due to a 1% decline in organic sales. Organic sales were negatively impacted by retailer inventory volume adjustments in North America and lower pricing in Developed Markets due to temporary energy surcharge-related price increases in the prior year. Net sales for the nine months ended September 30, 2024 of $4.6 billion decreased 3% due to impacts from divestitures and business exits, coupled with a decline in organic sales from lower pricing in Developed Markets.

Operating profit for the three months ended September 30, 2024 of $265 decreased 1% compared to the prior year as productivity savings were offset by unfavorable pricing net of inflation and higher manufacturing costs. Operating profit for the nine months ended September 30, 2024 of $800 increased 13% compared to the prior year. Results benefited from productivity savings and more balanced pricing relative to input costs.

K-C Professional

						Three Months Ended September 30												Nine Months Ended September 30																		Three Months Ended September 30												Nine Months Ended September 30
						2024						2023						2024						2023												2024						2023						2024						2023
Net Sales						$	767					$	854					$	2,431					$	2,588					Operating Profit						$	161					$	168					$	535					$	514

Percent Change in Net Sales Three Months Ended						Volume						Mix/Other						Net Price						Divestitures and Business Exits**(e)**						Currency Translation						Total**(a)**						Organic**(b)**
Total K-C Professional						(1)						—						(1)						(7)						(2)						(10)						(1)
North America						(2)						—						(1)						(9)						—						(11)						(3)
D&E Markets						(6)						1						9						(4)						(9)						(9)						4
Developed Markets						7						—						(8)						(6)						(1)						(7)						(1)

Percent Change in Net Sales Nine Months Ended						Volume						Mix/Other						Net Price						Divestitures and Business Exits**(e)**						Currency Translation						Total**(a)**						Organic**(b)**
Total K-C Professional						(1)						1						—						(4)						(2)						(6)						—
North America						(3)						—						—						(3)						—						(5)						(3)
D&E Markets						—						1						11						(11)						(11)						(10)						13
Developed Markets						4						1						(7)						(2)						(1)						(5)						(2)

Percent Change in Operating Profit						Volume						Net Price						Input Costs						Other Manufacturing Cost**(c)**						Currency Translation						Other**(d)**						Total
Three months ended						(10)						(3)						(5)						15						(1)						—						(4)
Nine months ended						(5)						1						(2)						14						(1)						(3)						4

(a) Total may not equal the sum of volume, mix/other, net price, divestitures and business exits and currency due to rounding and excludes intergeographic sales.

(b) Combined impact of changes in volume, mix/other and net price excluding prior year's impact of divestitures and business exits.

(c) Includes net impact of productivity initiatives, product and supply chain investments and other changes in cost of products sold.

(d) Includes impact of changes in product mix and marketing, research and general expenses.

(e) Impact of the sale of the Brazil tissue and K-C Professional business, sale of the PPE business and other exited businesses and markets in conjunction with the 2024 Transformation Initiative.

Net sales for the three months ended September 30, 2024 of $767 decreased 10% primarily due to divestitures and business exits and unfavorable currency impacts. Organic sales declined 1% primarily from the impacts of lower pricing in Developed Markets due to temporary energy surcharge-related price increases in the prior year and decreased volume in North America due to softer demand in retail and industrial channels. Net sales for the nine months ended September 30, 2024 of $2.4 billion decreased 6% primarily due to divestitures and business exits and unfavorable currency impacts. Organic sales were flat to the prior year as favorable mix gains were offset by lower volume in North America.

Operating profit for the three months ended September 30, 2024 of $161 decreased 4% compared to the prior year primarily due to the divestiture of the PPE business and unfavorable pricing net of cost inflation, partially offset by productivity gains. Operating profit for the nine months ended September 30, 2024 of $535 increased 4% compared to the prior year. Results primarily benefited from productivity savings, partially offset by the divestiture of the PPE business.

Liquidity and Capital Resources

Cash Provided by Operations

Cash provided by operations was $2.4 billion during the nine months ended September 30, 2024 compared to $2.3 billion in the prior year. The increase was driven by the higher operating profit, excluding the effect of non-cash charges, and favorable changes in operating working capital, partially offset by cash payments related to our 2024 Transformation Initiative.

Investing

Cash provided by investing was $94 during the nine months ended September 30, 2024 compared to cash used in the prior year of $266, as capital spending was more than offset by proceeds from asset and business dispositions. During the nine months ended September 30, 2024, our capital spending was $512 compared to $549 in the prior year. We anticipate that full year capital spending will be approximately $800, including incremental spending from the 2024 Transformation Initiative. Proceeds from asset and business dispositions of $649 in the first nine months of 2024 primarily reflected the sale of our PPE business. Proceeds from asset and business dispositions of $219 in the first nine months of 2023 primarily reflected the sale of our Brazil tissue and K-C Professional business.

Financing

Cash used for financing was $2.5 billion during the nine months ended September 30, 2024 compared to $1.6 billion in the prior year. This increase was primarily due to increased share repurchases coupled with debt repayments during the current year. During the nine months ended September 30, 2024, we repurchased 5.4 million shares of our common stock pursuant to our publicly announced share repurchase programs at a total cost of $752 through a broker in the open market.

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 $4 as of September 30, 2024 (included in Debt payable within one year on the condensed consolidated balance sheet). The average month-end balance of short-term debt for the nine months ended September 30, 2024 was $5. These short-term borrowings provide supplemental funding to support 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.

As of September 30, 2024 and December 31, 2023, total debt was $7.5 billion and $8.0 billion, respectively.

We maintain a $2.0 billion revolving credit facility which expires in June 2028 and a $750 revolving credit facility which expires in May 2025. 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.

We have evaluated the effects of the Global anti-Base Erosion rules set forth by the Organization for Economic Co-Operation and Development, referred to as “Pillar 2,” which establishes a global minimum corporate tax rate of 15%. We have (1) determined that Pillar 2 legislation has been enacted in one or more of the jurisdictions in which the Company operates and the Company is within the scope of such legislation, (2) assessed such enacted legislation and, as applicable, the Transitional Safe Harbor provisions for Pillar 2 that apply, and (3) determined the impact will be immaterial to our financial results. We intend to file a Qualified Country-by-Country Report for the current year for each jurisdiction in which we intend to rely on the Transitional Country-by-Country Reporting Safe Harbor provisions.

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 2024 Transformation Initiative, 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 raw material, energy and other input costs, the anticipated charges and savings from the 2024 Transformation Initiative, 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 and Türkiye, 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 the risk that we are not able to realize the anticipated benefits of the 2024 Transformation Initiative (including risks related to disruptions to our business or operations or related to any delays in implementation), war in Ukraine (including the related responses of consumers, customers, and suppliers and sanctions issued by the U.S., the European Union, Russia or other countries), pandemics, epidemics, fluctuations in foreign currency exchange rates, the prices and availability of our raw materials, supply chain disruptions, disruptions in the capital and credit markets, counterparty defaults (including customers, suppliers and financial institutions with which we do business), failure to realize the expected benefits or synergies from our acquisition and disposition activity, impairment of goodwill and intangible assets and our projections of operating results and other factors that may affect our impairment testing, changes in customer preferences, severe weather conditions, regional instabilities and hostilities (including the war in Israel), government trade or similar regulatory actions, potential competitive pressures on selling prices for our products, energy costs, general economic and political conditions globally and in the markets in which we do business, as well as our ability to maintain key customer relationships, could affect the realization of these estimates.

The factors described under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, or in our other SEC filings, among others, could cause our future results to differ from those expressed in any forward-looking statements made by us or on our behalf. Other factors not presently known to us or that we presently consider immaterial could also affect our business operations and financial results.