Item 1. Financial Statements

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

						Three Months Ended June 30												Six Months Ended June 30
(In millions, except per share amounts)						2025						2024						2025						2024
Net Sales						$	4,163					$	4,231					$	8,217					$	8,557
Cost of products sold						2,707						2,637						5,252						5,277
Gross Profit						1,456						1,594						2,965						3,280
Marketing, research and general expenses						863						967						1,718						1,918
Other (income) and expense, net						1						88						24						108
Operating Profit						592						539						1,223						1,254
Nonoperating expense						(17)						(15)						(34)						(30)
Interest income						5						9						12						19
Interest expense						(67)						(72)						(131)						(139)
Income from Continuing Operations Before Income Taxes and Equity Interests						513						461						1,070						1,104
Provision for income taxes						(116)						(60)						(247)						(208)
Income from Continuing Operations Before Equity Interests						397						401						823						896
Share of net income of equity companies						47						63						91						124
Income from Continuing Operations						444						464						914						1,020
Income from Discontinued Operations, Net of Income Taxes						68						89						171						191
Net Income						512						553						1,085						1,211
Net income attributable to noncontrolling interests						(3)						(9)						(9)						(20)
Net Income Attributable to Kimberly-Clark Corporation						$	509					$	544					$	1,076					$	1,191
Per Share Basis
Net Income Attributable to Kimberly-Clark Corporation
Basic:
Continuing operations						$	1.33					$	1.35					$	2.73					$	2.97
Discontinued operations						0.20						0.26						0.51						0.56
Basic Earnings per Share						$	1.53					$	1.61					$	3.24					$	3.53
Diluted:
Continuing operations						$	1.33					$	1.35					$	2.72					$	2.96
Discontinued operations						0.20						0.26						0.51						0.56
Diluted Earnings per Share						$	1.53					$	1.61					$	3.23					$	3.52

See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

						Three Months Ended June 30												Six Months Ended June 30
(In millions)						2025						2024						2025						2024
Net Income						$	512					$	553					$	1,085					$	1,211
Other Comprehensive Income (Loss), Net of Tax
Unrealized currency translation adjustments						224						(48)						372						(197)
Employee postretirement benefits						(5)						10						(9)						21
Cash flow hedges						(86)						57						(99)						120
Total Other Comprehensive Income (Loss), Net of Tax						133						19						264						(56)
Comprehensive Income						645						572						1,349						1,155
Comprehensive income attributable to noncontrolling interests						(9)						(6)						(15)						(14)
Comprehensive Income Attributable to Kimberly-Clark Corporation						$	636					$	566					$	1,334					$	1,141

See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions, except par value)						June 30, 2025						December 31, 2024
ASSETS
Current Assets
Cash and cash equivalents						$	634					$	1,010
Accounts receivable, net						2,007						1,728
Inventories						1,558						1,452
Other current assets						572						694
Current assets of discontinued operations						786						696
Total Current Assets						5,557						5,580
Property, Plant and Equipment, Net						6,317						6,284
Investments in Equity Companies						359						314
Goodwill						1,836						1,796
Other Intangible Assets, Net						81						80
Other Assets						1,001						984
Non-current Assets of Discontinued Operations						1,620						1,508
TOTAL ASSETS						$	16,771					$	16,546
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Debt payable within one year						$	771					$	564
Trade accounts payable						3,253						3,264
Accrued expenses and other current liabilities						2,019						2,091
Dividends payable						415						402
Current liabilities of discontinued operations						713						683
Total Current Liabilities						7,171						7,004
Long-Term Debt						6,470						6,854
Non-current Employee Benefits						619						628
Deferred Income Taxes						243						300
Other Liabilities						680						609
Non-current Liabilities of Discontinued Operations						148						139
Redeemable Preferred Securities of Subsidiaries						37						37
Stockholders' Equity
Kimberly-Clark Corporation
Preferred stock - no par value - authorized 20.0 million shares, none issued						—						—
Common stock - $1.25 par value - authorized 1,200.0 million shares; issued 378.6 million shares as of June 30, 2025 and December 31, 2024						473						473
Additional paid-in capital						798						862
Common stock held in treasury, at cost - 46.7 and 46.8 million shares as of June 30, 2025 and December 31, 2024, respectively						(5,986)						(5,986)
Retained earnings						9,494						9,257
Accumulated other comprehensive income (loss)						(3,508)						(3,766)
Total Kimberly-Clark Corporation Stockholders' Equity						1,271						840
Noncontrolling Interests						132						135
Total Stockholders' Equity						1,403						975
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY						$	16,771					$	16,546

See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

						Three Months Ended June 30, 2025
(In millions, except per share amounts. Shares in thousands)						Common Stock Issued												Additional Paid-in Capital						Treasury Stock												Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Non-controlling Interests						Total Stockholders' Equity
			Shares						Amount									Shares						Amount
Balance at March 31, 2025						378,597						$	473					$	842					46,730						$	(5,985)					$	9,406					$	(3,635)					$	123					$	1,224
Net income in stockholders' equity(a)						—						—						—						—						—						509						—						3						512
Other comprehensive income, net of tax(a)						—						—						—						—						—						—						127						6						133
Stock-based awards exercised or vested						—						—						(88)						(505)						67						—						—						—						(21)
Repurchases of common stock						—						—						—						457						(61)						—						—						—						(61)
Recognition of stock-based compensation						—						—						39						—						—						—						—						—						39
Dividends declared ($1.26 per share)						—						—						—						—						—						(419)						—						1						(418)
Other						—						—						5						—						(7)						(2)						—						(1)						(5)
Balance at June 30, 2025						378,597						$	473					$	798					46,682						$	(5,986)					$	9,494					$	(3,508)					$	132					$	1,403

						Six Months Ended June 30, 2025
(In millions, except per share amounts. Shares in thousands)						Common Stock Issued												Additional Paid-in Capital						Treasury Stock												Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Non-controlling Interests						Total Stockholders' Equity
			Shares						Amount									Shares						Amount
Balance at December 31, 2024						378,597						$	473					$	862					46,798						$	(5,986)					$	9,257					$	(3,766)					$	135					$	975
Net income in stockholders' equity(a)						—						—						—						—						—						1,076						—						9						1,085
Other comprehensive income, net of tax(a)						—						—						—						—						—						—						258						6						264
Stock-based awards exercised or vested						—						—						(141)						(1,031)						130						—						—						—						(11)
Repurchases of common stock						—						—						—						915						(123)						—						—						—						(123)
Recognition of stock-based compensation						—						—						70						—						—						—						—						—						70
Dividends declared ($2.52 per share)						—						—						—						—						—						(837)						—						(17)						(854)
Other						—						—						7						—						(7)						(2)						—						(1)						(3)
Balance at June 30, 2025						378,597						$	473					$	798					46,682						$	(5,986)					$	9,494					$	(3,508)					$	132					$	1,403

(a) Excludes redeemable interests' share.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

						Three Months Ended June 30, 2024
(In millions, except per share amounts. Shares in thousands)						Common Stock Issued												Additional Paid-in Capital						Treasury Stock												Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Non-controlling Interests						Total Stockholders' Equity
			Shares						Amount									Shares						Amount
Balance at March 31, 2024						378,597						$	473					$	877					41,823						$	(5,252)					$	8,601					$	(3,655)					$	140					$	1,184
Net income in stockholders' equity(a)						—						—						—						—						—						544						—						8						552
Other comprehensive income, net of tax(a)						—						—						—						—						—						—						22						(2)						20
Stock-based awards exercised or vested						—						—						(113)						(997)						114						—						—						—						1
Repurchases of common stock						—						—						—						762						(103)						—						—						—						(103)
Recognition of stock-based compensation						—						—						38						—						—						—						—						—						38
Dividends declared ($1.22 per share)						—						—						—						—						—						(411)						—						(1)						(412)
Other						—						—						—						—						—						—						1						—						1
Balance at June 30, 2024						378,597						$	473					$	802					41,588						$	(5,241)					$	8,734					$	(3,632)					$	145					$	1,281

						Six Months Ended June 30, 2024
(In millions, except per share amounts. Shares in thousands)						Common Stock Issued												Additional Paid-in Capital						Treasury Stock												Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Non-controlling Interests						Total Stockholders' Equity
			Shares						Amount									Shares						Amount
Balance at December 31, 2023						378,597						$	473					$	878					41,599						$	(5,222)					$	8,368					$	(3,582)					$	153					$	1,068
Net income in stockholders' equity(a)						—						—						—						—						—						1,191						—						18						1,209
Other comprehensive income, net of tax(a)						—						—						—						—						—						—						(50)						(6)						(56)
Stock-based awards exercised or vested						—						—						(150)						(1,232)						140						—						—						—						(10)
Repurchases of common stock						—						—						—						1,221						(159)						—						—						—						(159)
Recognition of stock-based compensation						—						—						69						—						—						—						—						—						69
Dividends declared ($2.44 per share)						—						—						—						—						—						(822)						—						(20)						(842)
Other						—						—						5						—						—						(3)						—						—						2
Balance at June 30, 2024						378,597						$	473					$	802					41,588						$	(5,241)					$	8,734					$	(3,632)					$	145					$	1,281

(a) Excludes redeemable interests' share.

See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

						Six Months Ended June 30
(In millions)						2025						2024
Operating Activities
Net income						$	1,085					$	1,211
Depreciation and amortization						440						373
Asset impairments						—						5
Stock-based compensation						73						71
Deferred income taxes						(30)						(79)
Net (gains) losses on asset and business dispositions						36						83
Equity companies' earnings (in excess of) less than dividends paid						(50)						(82)
Operating working capital						(471)						(135)
Postretirement benefits						9						3
Other						5						9
Cash Provided by Operations						1,097						1,459
Investing Activities
Capital spending						(401)						(352)
Proceeds from asset and business dispositions						12						14
Investments in time deposits						(227)						(242)
Maturities of time deposits						282						235
Other						22						(31)
Cash Used for Investing						(312)						(376)
Financing Activities
Cash dividends paid						(824)						(809)
Change in short-term debt						51						7
Debt repayments						(250)						—
Proceeds from exercise of stock options						36						41
Repurchases of common stock						(120)						(156)
Cash dividends paid to noncontrolling interests						(18)						(19)
Other						(58)						(62)
Cash Used for Financing						(1,183)						(998)
Effect of Exchange Rate Changes on Cash and Cash Equivalents						34						(15)
Change in Cash and Cash Equivalents						(364)						70
Cash and cash equivalents from continuing operations - beginning of period						1,010						1,075
Cash and cash equivalents from discontinued operations - beginning of period (a)						11						18
Cash and Cash Equivalents - Beginning of Period						1,021						1,093
Cash and cash equivalents from continuing operations - end of period						634						1,149
Cash and cash equivalents from discontinued operations - end of period(a)						23						14
Cash and Cash Equivalents - End of Period						$	657					$	1,163

(a) Included in Current assets of discontinued operations.

See Notes to the Unaudited Interim Condensed Consolidated Financial Statements.

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Accounting Policies

Basis of Presentation

The accompanying Unaudited Interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair statement of the results for the periods presented have been reflected. Amounts are reported in millions of dollars, except per share amounts, unless otherwise noted.

For further information, refer to the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2024. The terms "Corporation," "Company," "Kimberly-Clark," "K-C," "we," "our" and "us" refer to Kimberly-Clark Corporation and its consolidated subsidiaries.

International Family Care and Professional ("IFP") Transaction

On June 5, 2025, we announced that the Company will form a joint venture with Suzano S.A. ("Suzano") and Suzano International Holding B.V., a wholly-owned subsidiary of Suzano ("Buyer"), comprised of substantially all the operations of the Company's former International Family Care and Professional ("IFP") segment (the "IFP Business"). To facilitate this transaction, we entered into an Equity and Asset Purchase Agreement (the "Purchase Agreement") with Buyer, pursuant to which we will, among other things, effectuate a reorganization through the transfer of certain assets, liabilities and equity interests of the IFP Business to Kimberly-Clark IFP NewCo B.V., an indirect wholly-owned subsidiary of the Company (the "Joint Venture"). At the time of closing, which is expected to take place in mid-2026 and will only take place following the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, Buyer will acquire a 51% interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain closing adjustments set forth in the Purchase Agreement, and we will retain a 49% equity interest (the "IFP Transaction").

In accordance with ASC 205, Presentation of Financial Statements, we determined the IFP Transaction represents a strategic shift that will have a major effect on our operations and financial results. Accordingly, effective in the second quarter of fiscal 2025, the results of the IFP Business are reported as discontinued operations in the accompanying Condensed Consolidated Statements of Income and have been excluded from both continuing operations and segment results for all periods presented. Further, the assets and liabilities of the IFP Business are classified as discontinued operations in the accompanying Condensed Consolidated Balance Sheets for all periods presented, and the Company has ceased depreciating and amortizing the long-lived assets of the IFP Business. The Condensed Consolidated Statements of Comprehensive Income, Stockholders' Equity and Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. Unless otherwise noted, amounts and disclosures in the Notes to the Unaudited Interim Condensed Consolidated Financial Statements reflect only Kimberly-Clark's continuing operations. See Note 3 for additional details.

Highly Inflationary Accounting

GAAP requires the use of highly inflationary accounting for countries whose cumulative three-year inflation exceeds 100%. Under highly inflationary accounting, the countries’ functional currency becomes the U.S. dollar, and its income statement and balance sheet are measured in U.S. dollars using both current and historical rates of exchange.

As of July 1, 2018, we adopted highly inflationary accounting for our subsidiaries in Argentina (“K-C Argentina”). The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net. As of June 30, 2025, K-C Argentina had an immaterial net peso monetary position. Net sales of K-C Argentina were approximately 1% of our consolidated net sales for the three and six months ended June 30, 2025 and 2024.

As of April 1, 2022, we adopted highly inflationary accounting for our subsidiary in Türkiye (“K-C Türkiye”). The effect of changes in exchange rates on lira-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net. As of June 30, 2025, K-C Türkiye had an immaterial net lira monetary position. Net sales of K-C Türkiye were less than 1% of our consolidated net sales for the three and six months ended June 30, 2025 and 2024.

Recently Issued Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740). The new guidance is intended to enhance the transparency and decision usefulness of annual income tax disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied on a prospective basis with retrospective application permitted. As the guidance requires only additional disclosure, there will be no effects of this standard on our financial position, results of operations or cash flows.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220). The new guidance requires disclosure in the notes to the financial statements of disaggregated information about specific expense categories underlying certain income statement expense line items. The amendments in this ASU are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments should be applied on a prospective basis with retrospective application permitted. We are currently evaluating the impact of this update on our consolidated financial statements and related disclosures.

Note 2. 2024 Transformation Initiative

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 June 30, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $656 ($511 after-tax).

The following charges were incurred in connection with the 2024 Transformation Initiative:

						Three Months Ended June 30												Six Months Ended June 30
						2025						2024						2025						2024
Cost of products sold:
Charges for workforce reductions						$	—					$	34					$	14					$	34
Asset write-offs						20						5						20						5
Incremental depreciation						57						3						89						3
Other exit costs						5						3						12						3
Total						82						45						135						45
Marketing, research and general expenses:
Charges for workforce reductions						13						46						15						69
Other exit costs						26						24						46						46
Total						39						70						61						115
Other (income) and expense, net(a)						—						75						—						75
Nonoperating expense						1						—						3						—
Total charges**(b)**						122						190						199						235
Provision for income taxes						(27)						(73)						(27)						(84)
Net charges						95						117						172						151
Net impact related to noncontrolling interests						(4)						—						(4)						—
Net charges attributable to Kimberly-Clark Corporation						$	91					$	117					$	168					$	151

(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 $58 and $71, respectively, for the three months ended June 30, 2025, $27 and $126, respectively, for the three months ended June 30, 2024, $85 and $91, respectively, for the six months ended June 30, 2025, and $65 and $129, respectively, for the six months ended June 30, 2024, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 8.

The following summarizes the 2024 Transformation Initiative liabilities activity:

						2025
2024 Transformation Initiative liabilities as of January 1						$	130
Charges for workforce reductions and other cash exit costs						86
Cash payments						(130)
Currency and other						—
2024 Transformation Initiative liabilities as of June 30						$	86

2024 Transformation Initiative liabilities are recorded in Accrued expenses and other current liabilities. The charges related to the 2024 Transformation Initiative are reflected within Operating Activities of our Condensed Consolidated Statements of Cash Flows.

Note 3. Discontinued Operations

As disclosed in Note 1, on June 5, 2025, we announced the sale of a controlling equity interest in a newly formed Joint Venture comprised of our IFP Business. At the time of closing, Buyer will acquire a 51% interest in the Joint Venture for a purchase price of approximately $1.7 billion, subject to certain post-closing adjustments set forth in the Purchase Agreement. We will retain a 49% equity interest in the Joint Venture which we expect will initially be recorded at fair value and subsequently accounted for using the equity method of accounting. The transaction is expected to close in mid-2026, pending the satisfaction of consultation requirements and customary closing conditions, including obtaining required regulatory approvals, set forth in the Purchase Agreement.

Financial Information of Discontinued Operations

The following table presents the components of Income from Discontinued Operations, Net of Income Taxes:

						Three Months Ended June 30												Six Months Ended June 30
						2025						2024						2025						2024
Net Sales						$	802					$	798					$	1,588					$	1,621
Cost of products sold						592						582						1,154						1,180
Gross Profit						210						216						434						441
Marketing, research and general expenses						108						99						194						187
Other (income) and expense, net						2						1						2						—
Operating Profit						100						116						238						254
Nonoperating expense						1						—						—						—
Income from discontinued operations before income taxes						101						116						238						254
Provision for income taxes						(33)						(27)						(67)						(63)
Income from Discontinued Operations, Net of Income Taxes						$	68					$	89					$	171					$	191

As a result of the IFP Transaction, we incurred separation costs of $33 for the three months ended June 30, 2025, which are included in Income from Discontinued Operations, Net of Income Taxes. These costs were primarily related to external advisory, legal, accounting, contractor and other incremental costs directly related to the IFP Transaction.

The following table presents significant non-cash items and capital expenditures of discontinued operations:

						Three Months Ended June 30												Six Months Ended June 30
						2025						2024						2025						2024
Depreciation and Amortization						$	28					$	32					$	68					$	64
Capital Spending						21						22						46						54

The following table presents the components of assets and liabilities classified as discontinued operations:

						June 30, 2025						December 31, 2024
Assets
Cash and cash equivalents						$	23					$	11
Accounts receivable, net						330						281
Inventories						415						370
Other current assets						18						34
Current Assets of Discontinued Operations						$	786					$	696
Property, Plant and Equipment, Net						$	1,318					$	1,229
Goodwill						184						168
Other Intangible Assets, Net						7						7
Other Assets						111						104
Non-current Assets of Discontinued Operations						$	1,620					$	1,508
Liabilities
Debt payable within one year						$	5					$	4
Trade accounts payable						475						451
Accrued expenses and other current liabilities						233						228
Current Liabilities of Discontinued Operations						$	713					$	683
Long-Term Debt						$	20					$	21
Non-current Employee Benefits						15						15
Deferred Income Taxes						32						26
Other Liabilities						81						77
Non-current Liabilities of Discontinued Operations						$	148					$	139

Joint Venture Agreement and Ancillary Agreements

Upon the closing, K-C, Buyer and the Joint Venture will enter into a joint venture agreement (the "JVA"), which will set forth provisions relating to, among other things, the governance of the Joint Venture following closing, transfer restrictions with respect to the parties’ interests in the Joint Venture, and the option of Buyer to purchase K-C's equity interests in the Joint Venture. We will also enter into certain ancillary agreements including intellectual property rights, transition services agreements (the "TSA") and transitional supply arrangements (the "Supply Agreements"). Pursuant to the TSA, K-C will provide certain services to the Joint Venture, on an interim, transitional basis from and after the closing for an initial duration of 18 months, with certain extension rights provided therein. Pursuant to the Supply Agreements, K-C will manufacture and supply certain products to the Joint Venture and, similarly, the Joint Venture will manufacture and supply certain products to K-C for a period of up to 36 months following the closing with certain extension rights provided therein.

Note 4. Fair Value Information

The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are:

Level 1 – Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities.

Level 2 – Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3 – Prices or valuations that require inputs that are significant to the valuation and are unobservable.

A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

During the six months ended June 30, 2025 and for the full year 2024, there were no significant transfers to or from level 3 fair value determinations.

Derivative assets and liabilities are measured on a recurring basis at fair value. As of June 30, 2025 and December 31, 2024, derivative assets were $82 and $189, respectively, and derivative liabilities were $253 and $137, respectively. The fair values of derivatives used to manage interest rate risk and commodity price risk are based on the Secured Overnight Financing Rate ("SOFR") and interest rate swap curves and on commodity price quotations, respectively. The fair values of hedging instruments used to manage foreign currency risk are based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. Measurement of our derivative assets and liabilities is considered a level 2 measurement. See Note 7 for additional information on our use of derivative instruments.

Redeemable preferred securities of subsidiaries are measured on a recurring basis at their estimated redemption values, which approximate fair value. As of June 30, 2025 and December 31, 2024, the securities were valued at $37. The securities are not traded in active markets, and their measurement is considered a level 3 measurement.

Company-owned life insurance ("COLI") assets are measured on a recurring basis at fair value. COLI assets were $70 and $71 as of June 30, 2025 and December 31, 2024, respectively. The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in Other Assets in the Condensed Consolidated Balance Sheets. The COLI policies are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy.

The following table includes the fair value of our financial instruments for which disclosure of fair value is required:

						Fair Value Hierarchy Level						Carrying Amount						Estimated Fair Value						Carrying Amount						Estimated Fair Value
									June 30, 2025												December 31, 2024
Assets
Cash and cash equivalents(a)						1						$	634					$	634					$	1,010					$	1,010
Time deposits(b)						1						142						142						181						181
Non-US government bonds(c)						2						—						—						15						15
Liabilities
Short-term debt(d)						2						59						59						3						3
Long-term debt(e)						2						7,182						6,733						7,415						6,828

(a)Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at cost, which approximates fair value.

(b)Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of greater than one year, included in Other current assets or Other Assets in the Condensed Consolidated Balance Sheets, as appropriate. Time deposits are recorded at cost, which approximates fair value.

(c)Non-US government bonds are composed of foreign issued debt securities that are classified as held-to-maturity because we have the positive intent and ability to hold the securities to maturity. These securities are recorded at amortized cost and are included in Other current assets or Other Assets in the Condensed Consolidated Balance Sheets, as appropriate.

(d)Short-term debt is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value.

(e)Long-term debt includes the current portion of these debt instruments. Fair values were estimated based on quoted prices for financial instruments for which all significant inputs were observable, either directly or indirectly.

Note 5. Earnings Per Share

Basic and diluted earnings per share ("EPS") were calculated as follows:

						Three Months Ended June 30												Six Months Ended June 30
(In millions, except per share amounts)						2025						2024						2025						2024
Income from Continuing Operations						$	444					$	464					$	914					$	1,020
Less: Net income attributable to noncontrolling interests						(3)						(9)						(9)						(20)
Income from Continuing Operations Attributable to Kimberly-Clark Corporation						441						455						905						1,000
Income from Discontinued Operations, Net of Income Taxes						68						89						171						191
Net Income Attributable to Kimberly-Clark Corporation						$	509					$	544					$	1,076					$	1,191
Weighted-Average Common Shares
Basic						332.1						337.1						331.9						337.0
Dilutive effect of stock options and restricted share unit awards						1.2						0.9						1.4						1.2
Diluted						333.3						338.0						333.3						338.2
Basic:
Continuing operations						$	1.33					$	1.35					$	2.73					$	2.97
Discontinued operations						0.20						0.26						0.51						0.56
Basic Earnings per Share						$	1.53					$	1.61					$	3.24					$	3.53
Diluted:
Continuing operations						$	1.33					$	1.35					$	2.72					$	2.96
Discontinued operations						0.20						0.26						0.51						0.56
Diluted Earnings per Share						$	1.53					$	1.61					$	3.23					$	3.52

We use the treasury stock method to calculate the dilutive effect of stock options and other stock-based awards. Options outstanding not included in the computation of diluted EPS because their exercise price was greater than the average market price of the common shares were not material. The number of common shares outstanding as of June 30, 2025 and 2024 was 331.9 million and 337.0 million, respectively.

Note 6. Stockholders' Equity

Net unrealized currency gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries, except those in highly inflationary economies, are recorded in Accumulated Other Comprehensive Income ("AOCI"). For these operations, changes in exchange rates generally do not affect cash flows; therefore, unrealized translation adjustments are recorded in AOCI rather than net income. Upon sale or substantially complete liquidation of any of these subsidiaries, the applicable unrealized translation adjustment would be removed from AOCI and reported as part of the gain or loss on the sale or liquidation. The change in unrealized currency translation for the six months ended June 30, 2025 was primarily due to the strengthening of certain foreign currencies versus the U.S. dollar.

Also included in unrealized translation amounts are the effects of foreign exchange rate changes on intercompany balances of a long-term investment nature and transactions designated as hedges of net foreign investments.

The changes in the components of AOCI attributable to Kimberly-Clark, net of tax, are as follows:

						Unrealized Translation						Defined Benefit Pension Plans						Other Postretirement Benefit Plans						Cash Flow Hedges
Balance as of December 31, 2023						$	(2,678)					$	(791)					$	39					$	(152)
Other comprehensive income (loss) before reclassifications						(232)						7						(1)						92
(Income) loss reclassified from AOCI						45			(b)			15			(a)			(1)			(a)			25			(c)
Net current period other comprehensive income (loss)						(187)						22						(2)						117
Balance as of June 30, 2024						$	(2,865)					$	(769)					$	37					$	(35)
Balance as of December 31, 2024						$	(3,068)					$	(775)					$	47					$	30
Other comprehensive income (loss) before reclassifications						362						(29)						5						(107)
(Income) loss reclassified from AOCI						—						17			(a)			(2)			(a)			12			(c)
Net current period other comprehensive income (loss)						362						(12)						3						(95)
Balance as of June 30, 2025						$	(2,706)					$	(787)					$	50					$	(65)

(a) Included in Nonoperating expense as part of the computation of net periodic benefit costs.

(b) Included in Other (income) and expense, net as part of the charges related to the 2024 Transformation Initiative (see Note 2).

(c) Included in Interest expense, Cost of products sold or Other (income) and expense, net, based on the income statement line that the hedged exposure affects earnings. For the six months ended June 30, 2025, losses of $20 were reclassified into Income from Discontinued Operations, Net of Income Taxes due to the discontinuance of cash flow hedge accounting as a result of the IFP Transaction (see Note 7 for further details).

Note 7. Objectives and Strategies for Using Derivatives

As a multinational enterprise, we are exposed to financial risks, such as changes in foreign currency exchange rates, interest rates, and commodity prices. We employ a number of practices to manage these risks, including operating and financing activities and, where appropriate, the use of derivative instruments.

As of June 30, 2025 and December 31, 2024, derivative assets were $82 and $189, respectively, and derivative liabilities were $253 and $137, respectively, primarily comprised of foreign currency exchange, interest rate and commodity price contracts. Derivative assets are recorded in Other current assets or Other Assets, as appropriate, and derivative liabilities are recorded in Accrued expenses and other current liabilities or Other Liabilities, as appropriate.

Foreign Currency Exchange Rate Risk

Translation adjustments result from translating foreign entities' financial statements into U.S. dollars from their functional currencies. The risk to any particular entity's net assets is reduced to the extent that the entity is financed with local currency borrowings. A portion of our balance sheet translation exposure for certain affiliates, which results from changes in translation rates between the affiliates’ functional currencies and the U.S. dollar, is hedged with cross-currency swap contracts and certain foreign denominated debt which are designated as net investment hedges. The foreign currency exposure on certain non-functional currency denominated monetary assets and liabilities, primarily intercompany loans and accounts payable, is hedged primarily with undesignated derivative instruments.

Derivative instruments are used to hedge a portion of forecasted cash flows denominated in foreign currencies for non-U.S. operations' purchases of raw materials, which are priced in U.S. dollars, and imports of intercompany finished goods and work-in-process priced predominantly in U.S. dollars and euros. The derivative instruments used to manage these exposures are designated as cash flow hedges.

Interest Rate Risk

Interest rate risk is managed using a portfolio of variable and fixed-rate debt composed of short and long-term instruments. Interest rate swap contracts may be used to facilitate the maintenance of the desired ratio of variable and fixed-rate debt and are designated as fair value hedges. From time to time, we also hedge the anticipated issuance of fixed-rate debt, and these contracts are designated as cash flow hedges.

Commodity Price Risk

We use derivative instruments, such as commodity forward and price swap contracts, to hedge a portion of our exposure to market risk arising from changes in prices of certain commodities. These derivatives are primarily designated as cash flow hedges of specific quantities of the underlying commodity expected to be purchased in future months. In addition, we utilize negotiated contracts of varying durations along with strategic pricing mechanisms to manage volatility for a portion of our commodity costs.

Fair Value Hedges

Derivative instruments that are designated and qualify as fair value hedges are predominantly used to manage interest rate risk. The fair values of these derivative instruments are recorded as an asset or liability, as appropriate, with the offset recorded in Interest expense. The offset to the change in fair values of the related debt is also recorded in Interest expense. Any realized gain or loss on the derivatives that hedge interest rate risk is amortized to Interest expense over the life of the related debt. As of June 30, 2025, the aggregate notional values and carrying values of debt subject to outstanding interest rate contracts designated as fair value hedges were $525 and $501, respectively. For the six months ended June 30, 2025 and 2024, gains or losses recognized in Interest expense for interest rate swaps were not material.

Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is initially recorded in AOCI, net of related income taxes, and recognized in earnings in the same income statement line and period that the hedged exposure affects earnings. As of June 30, 2025, the aggregate notional value of outstanding foreign exchange and commodity derivative contracts designated as cash flow hedges was $2.6 billion. For the six months ended June 30, 2025, we discontinued cash flow hedge accounting for certain foreign exchange and commodity instruments with a notional value of $681 because the forecasted transactions were no longer probable of occurring due to the IFP Transaction. As a result, pre-tax losses of $20 were reclassified from AOCI into Income from Discontinued Operations, Net of Income Taxes. For the six months ended June 30, 2024, no material gains or losses were reclassified from AOCI into earnings as a result of the discontinuance of cash flow hedge accounting. As of June 30, 2025, losses expected to be reclassified from AOCI into Interest expense, Cost of products sold or Other (income) and expense, net during the next twelve months are $32. The maximum maturity of cash flow hedges in place as of June 30, 2025 is May 2028.

Net Investment Hedges

For derivative instruments that are designated and qualify as net investment hedges, the aggregate notional value was $1.3 billion as of June 30, 2025. We exclude the interest accruals on cross-currency swap contracts and the forward points on foreign exchange forward contracts from the assessment and measurement of hedge effectiveness. We recognize the interest accruals on cross-currency swap contracts in earnings within Interest expense. We amortize the forward points on foreign exchange contracts into earnings within Interest expense over the life of the hedging relationship. Unrealized gains and losses related to changes in fair value of net investment hedges are recorded in AOCI and offset the change in the value of the net investment being hedged. Unrealized losses of $128 and unrealized gains of $18 were recorded in AOCI for the three months ended June 30, 2025 and 2024, respectively. Unrealized losses of $148 and unrealized gains of $45 were recorded in AOCI for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, no material amounts were reclassified from AOCI to Interest expense.

For the six months ended June 30, 2025 and 2024, no material amounts were excluded from the assessment of net investment, fair value or cash flow hedge effectiveness.

Undesignated Hedging Instruments

Gains or losses on undesignated foreign exchange and commodity hedging instruments are immediately recognized in Other (income) and expense, net. Gains of $38 and losses of $9 were recorded for the three months ended June 30, 2025 and 2024, respectively. Gains of $62 and losses of $32 were recorded in the six months ended June 30, 2025 and 2024, respectively. The effect on earnings from the use of these non-designated derivatives is substantially neutralized by the transactional gains and losses recorded on the underlying assets and liabilities. As of June 30, 2025, the notional value of these undesignated derivative instruments was approximately $5.2 billion.

Note 8. 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 June 30, 2025
						NA						IPC						Total
Segment Net Sales						$	2,730					$	1,433					$	4,163
Corporate & Other																		—
Total Net Sales																		$	4,163
Cost of Products Sold						1,642						967						2,609
Advertising and Promotion Expense						170						98						268
Research, Selling and General Expense						263						183						446
Other (Income) and Expense, net(a)						—						3						3
Segment Operating Profit						$	655					$	182					$	837
Corporate & Other																		(245)
Total Operating Profit																		$	592

						Six Months Ended June 30, 2025
						NA						IPC						Total
Segment Net Sales						$	5,398					$	2,819					$	8,217
Corporate & Other																		—
Total Net Sales																		$	8,217
Cost of Products Sold						3,205						1,873						5,078
Advertising and Promotion Expense						335						203						538
Research, Selling and General Expense						525						356						881
Other (Income) and Expense, net(a)						—						4						4
Segment Operating Profit						$	1,333					$	383					$	1,716
Corporate & Other																		(493)
Total Operating Profit																		$	1,223

						Three Months Ended June 30, 2024
						NA						IPC						Total
Segment Net Sales						$	2,783					$	1,427					$	4,210
Corporate & Other																		21
Total Net Sales																		$	4,231
Cost of Products Sold						1,627						930						2,557
Advertising and Promotion Expense						186						101						287
Research, Selling and General Expense						288						185						473
Other (Income) and Expense, net(a)						—						2						2
Segment Operating Profit						$	682					$	209					$	891
Corporate & Other																		(352)
Total Operating Profit																		$	539

(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.

						Six Months Ended June 30, 2024
						NA						IPC						Total
Segment Net Sales						$	5,559					$	2,953					$	8,512
Corporate & Other																		45
Total Net Sales																		$	8,557
Cost of Products Sold						3,254						1,913						5,167
Advertising and Promotion Expense						376						210						586
Research, Selling and General Expense						578						359						937
Other (Income) and Expense, net(a)						—						11						11
Segment Operating Profit						$	1,351					$	460					$	1,811
Corporate & Other																		(557)
Total Operating Profit																		$	1,254

(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 June 30												Six Months Ended June 30
						2025						2024						2025						2024
NA						$	124					$	106					$	228					$	210
IPC						70						48						135						95
Total Segment Depreciation and Amortization						194						154						363						305
Corporate & Other						—						2						9						4
Total**(a)**						$	194					$	156					$	372					$	309

(a) Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations.

Capital spending by segment was:

						Three Months Ended June 30												Six Months Ended June 30
						2025						2024						2025						2024
NA						$	141					$	99					$	284					$	217
IPC						35						35						71						77
Total Segment Capital Spending						176						134						355						294
Corporate & Other						—						2						—						4
Total**(a)**						$	176					$	136					$	355					$	298

(a) Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations.

Sales of Principal Products:

						Three Months Ended June 30												Six Months Ended June 30
						2025						2024						2025						2024
Baby and Child Care						$	1,768					$	1,814					$	3,405					$	3,587
Family Care						997						939						2,024						1,971
Professional						465						591						911						1,159
Adult Care						492						455						968						918
Feminine Care						412						413						855						880
All other						29						19						54						42
Total						$	4,163					$	4,231					$	8,217					$	8,557

Note 9. Supplemental Balance Sheet Data

The following schedule presents a summary of inventories by major class:

						June 30, 2025																		December 31, 2024
						LIFO						Non-LIFO						Total						LIFO						Non-LIFO						Total
Raw materials						$	124					$	220					$	344					$	122					$	201					$	323
Work in process						113						39						152						116						32						148
Finished goods						559						455						1,014						510						428						938
Supplies and other						—						255						255						—						243						243
						796						969						1,765						748						904						1,652
Excess of FIFO or weighted-average cost over LIFO cost						(207)						—						(207)						(200)						—						(200)
Total						$	589					$	969					$	1,558					$	548					$	904					$	1,452

Inventories are valued at the lower of cost or net realizable value, determined on the FIFO or weighted-average cost methods, and at the lower of cost or market, determined on the LIFO cost method.

The following schedule presents a summary of property, plant and equipment, net:

						June 30, 2025						December 31, 2024
Land						$	112					$	110
Buildings						2,392						2,314
Machinery and equipment						12,750						12,498
Construction in progress						824						780
						16,078						15,702
Less accumulated depreciation						(9,761)						(9,418)
Total						$	6,317					$	6,284

Supplier Finance Program

We have a supplier finance program managed through two global financial institutions under which we agree to pay the financial institutions the stated amount of confirmed invoices from our participating suppliers on the invoice due date. We, or the global financial institutions, may terminate our agreements at any time upon 30 days written notice. The global financial institutions may terminate our agreements at any time upon three days written notice in the event there are insufficient funds available for disbursement. We do not provide any forms of guarantees under these agreements. Supplier participation in the program is solely up to the supplier, and the participating suppliers negotiate their arrangements directly with the global financial institutions. We have no economic interest in a supplier’s decision to participate in the program, and their participation has no bearing on our payment terms or amounts due. The payment terms that we have with our suppliers under this program generally range from 75 to 180 days and are considered commercially reasonable. As of June 30, 2025 and December 31, 2024, the outstanding amounts related to the suppliers participating in this program were $1.0 billion, of which $213 and $185, respectively, are reported as discontinued operations. Amounts are recorded within Trade accounts payable and Current liabilities of discontinued operations.

Note 10. Legal Matters

We are party to certain legal proceedings relating to our former health care business, Avanos Medical, Inc. ("Avanos", previously Halyard Health, Inc.), as described in our Form 10-K for the year ended December 31, 2024, including a qui tam matter and certain subpoena and document requests from the federal government. The subpoena and document requests include subpoenas from the United States Department of Justice (“DOJ”) concerning allegations of potential criminal and civil violations of federal laws, including the Food, Drug, and Cosmetic Act, in connection with the manufacturing, marketing and sale of surgical gowns by our former health care business. During the second quarter of 2025, we entered into a settlement agreement to resolve the qui tam matter which provides for a payment by us in an amount that is not expected to materially affect our financial position, results of operations or cash flows. We continue to cooperate in the DOJ investigation and have progressed our efforts to reach a resolution of all related matters.