10-K – 2026-02-12 – kmb-20251231.htm

foreign tax credits and changes providing for the immediate deduction of previously capitalized research and development expenditures.
In October 2021, members of the Organization for Economic Co-operation and Development/G20 Inclusive Framework on Base Erosion and Profit Shifting Project (“Inclusive Framework”) agreed to a two-pillar solution to reform the international tax framework to realign international taxation with economic activities and value creation. Inclusive Framework members agreed to a coordinated system of Global anti-Base Erosion rules, referred to as Pillar 2, that are designed to ensure large multinational enterprises pay a minimum 15% level of tax on the income arising in each jurisdiction in which they operate. Many countries have formally implemented Pillar 2, and several other countries have draft legislation to implement this framework. The implementation of Pillar 2 has not had a material impact on our Consolidated Financial Statements. We will continue to monitor and evaluate new legislation and guidance, which could change our current assessment.
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, obligations related to our 2024 Transformation Initiative, capital spending, pension contributions, share repurchases, 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.

Critical Accounting Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. The critical accounting estimates we used in the preparation of the Consolidated Financial Statements are those that are important both to the presentation of our financial condition and results of operations and require significant judgments by management with regard to estimates used. The critical judgments by management relate to accruals for sales incentives and trade promotion allowances, pension and other postretirement benefits, deferred income taxes and potential income tax assessments, and goodwill and other intangible assets. These critical accounting estimates have been reviewed with the Audit Committee of the Board of Directors.
Sales Incentives and Trade Promotion Allowances
Trade promotion programs include introductory marketing funds such as slotting fees, cooperative marketing programs, temporary price reductions and other activities conducted by our customers to promote our products. Rebate and promotion accruals are based on estimates of the quantity of customer sales. Promotion accruals also consider estimates of the number of consumer coupons that will be redeemed and timing and costs of activities within the promotional programs. Generally, the estimated redemption value of consumer coupons and related expense are based on historical patterns of coupon redemption, influenced by judgments about current market conditions such as competitive activity in specific product categories, and the cost is recorded when the related revenue from customers is realized. Our related accounting policies are discussed in Item 8, Note 1 to the Consolidated Financial Statements.
Employee Postretirement Benefits
Substantially all regular employees in the U.S. and the United Kingdom are covered by defined contribution retirement plans and certain U.S. and United Kingdom employees previously earned benefits covered by defined benefit pension plans that currently provide no future service benefit (the "Principal Plans"). Certain other subsidiaries have defined benefit pension plans or, in certain countries, termination pay plans covering substantially all regular employees. Our related accounting policies and account balances are discussed in Item 8, Note 9 to the Consolidated Financial Statements.
Changes in certain assumptions could affect pension expense and the benefit obligations, particularly the estimated long-term rate of return on plan assets and the discount rate used to calculate the obligations:
• Long-term rate of return on plan assets . The expected long-term rate of return is evaluated on an annual basis. In setting these assumptions, we consider a number of factors including projected future returns by

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asset class relative to the target asset allocation. Actual asset allocations are regularly reviewed and they are periodically rebalanced to the targeted allocations when considered appropriate.
As of December 31, 2025, the Principal Plans had cumulative unrecognized investment and actuarial losses of approximately $1.0 billion. These unrecognized net losses may increase future pension expense if not offset by (i) actual investment returns that exceed the assumed investment returns, (ii) other factors, including reduced pension liabilities arising from higher discount rates used to calculate pension obligations, or (iii) other actuarial gains, and whether such accumulated actuarial losses at each measurement date exceed the "corridor" as required . If the expected long-term rate of return on assets for the Principal Plans were lowered by 0.25%, the impact on annual pension expense would not be material in 2026 .
• Discount rate . The discount (or settlement) rate used to determine the present value of our future U.S. pension obligation as of December 31, 2025 was based on a portfolio of high quality corporate debt securities with cash flows that largely match the expected benefit payments of the plan. For the United Kingdom plan, the discount rate was determined based on yield curves constructed from a portfolio of high quality corporate debt securities. Each year's expected future benefit payments were discounted to their present value at the appropriate yield curve rate to determine the pension obligations. If the discount rate assumptions for these same plans were reduced by 0.25%, the increase in annual pension expense would not be material in 2026, and the December 31, 2025 pension liability would increase by about $50.
• Other assumptions . There are a number of other assumptions involved in the calculation of pension expense and benefit obligations, primarily related to participant demographics and benefit elections.
Pension expense for defined benefit pension plans is estimated to approximate $45 in 2026. Pension expense beyond 2026 will depend on future investment p erformance, our contributions to the pension trusts, changes in discount rates and various other factors related to the covered participants in the plans.
Substantially all U.S. retirees and employees have access to our unfunded health care and life insurance benefit plans. Changes in significant assumptions could affect the consolidated expense and benefit obligations, particularly the discount rate used to calculate the obligations and the health care cost trend rate:
• Discount rate . The determination of the discount rates used to calculate the benefit obligations of the plans is discussed in the pension ben efit section above, and the methodology for each country is the same as the methodology used to determine the discount rate for that country's pension obligation. If the discount rate assumptions for these plans were reduced by 0.25%, the impact to 2026 other postretirement benefit expense and the increase in the December 31, 2025 benefit liability would not be material.
• Health care cost trend rate . The health care cost trend rate is based on a combination of inputs including our recent claims history and insights from external advisers regarding recent developments in the health care marketplace, as well as projections of future trends in the marketplace.
Deferred Income Taxes and Potential Assessments
As a global organization, we are subject to income tax requirements in various jurisdictions in the U.S. and internationally. Changes in certain assumptions related to income taxes could significantly affect consolidated results, particularly with regard to valuation allowances on deferred tax assets, undistributed earnings of subsidiaries outside the U.S. and uncertain tax positions. Our income tax related accounting policies, account balances and matters affecting income taxes are discussed in Item 8, Note 14 to the Consolidated Financial Statements.
• Deferred tax assets and related valuation allowances . We have recorded deferred tax assets related to, among other matters, income tax loss carryforwards, income tax credit carryforwards and capital loss carryforwards and have established valuation allowances against these deferred tax assets. These carryforwards are primarily in non-U.S. taxing jurisdictions and in certain states in the U.S. Foreign tax credits earned in the U.S. in current and prior years, which cannot be used currently, also give rise to net deferred tax assets. In determining the valuation allowances to establish against these deferred tax assets, many factors are considered, including the specific taxing jurisdiction, the carryforward period, income tax strategies and forecasted earnings for the entities in each jurisdiction. A valuation allowance is recognized

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if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized.
• Undistributed earnings . Deferred taxes have been recorded on $1.2 billion of earnings of foreign consolidated subsidiaries expected to be repatriated. We do not intend to distribute any remaining foreign earnings and therefore have not recorded deferred taxes for foreign and U.S. income taxes on such earnings. We consider any excess of the amount for financial reporting over the tax basis in our foreign subsidiaries to be indefinitely reinvested. The determination of deferred tax liabilities on the amount of financial reporting over tax basis or the remaining foreign earnings is not practicable.
• Uncertain tax positions . We record our global tax provision based on the respective tax rules and regulations for the jurisdictions in which we operate. Where we believe that a tax position is supportable for income tax purposes, the item is included in our income tax returns. Where treatment of a position is uncertain, a liability is recorded based upon the expected most likely outcome taking into consideration the technical merits of the position based on specific tax regulations and facts of each matter. These liabilities may be affected by changing interpretations of laws, rulings by tax authorities or the expiration of the statute of limitations.
Goodwill and Other Intangible Assets
Goodwill and other indefinite-lived intangible assets are not subject to amortization and are tested for impairment annually and whenever events or changes in circumstances indicate that impairment may have occurred. Intangible assets that are deemed to have finite lives are amortized over their useful lives, generally ranging from 4 to 20 years. We typically obtain the assistance of third-party valuation specialists to measure the acquisition date fair values of goodwill and other intangible assets acquired.
Events and conditions that could result in impairment include a sustained drop in the market price of our common shares, increased competition or loss of market share, obsolescence, product claims that result in a significant loss of sales or profitability over the product life, deterioration in macroeconomic conditions, or declining financial performance in comparison to projected results.
Goodwill
In our evaluation of goodwill impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of each reporting unit is more than its carrying value. Qualitative factors include macroeconomic, industry and competitive conditions, legal and regulatory environments, historical and projected financial performance, significant changes in the reporting unit and the magnitude of excess fair value over carrying amount from the previous quantitative impairment testing. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test to estimate fair value must be performed. When a quantitative test is considered necessary, estimates of fair value for goodwill impairment testing are determined based on a discounted cash flow model and a market-based approach. We use inputs from our long-range planning process to determine growth rates for sales and earnings. The other key estimates and factors used in the discounted cash flow model include, but are not limited to, discount rates, actual business trends experienced, commodity prices, foreign exchange rates, inflation and terminal growth rates.
We completed our required annual assessment of goodwill for impairment for all our reporting units using a qualitative assessment as of the first day of the third quarter of the year ended December 31, 2025, concluding that it was more likely than not that the fair value of each reporting unit significantly exceeded the respective carrying amounts.
Other Intangible Assets
We evaluate the useful lives of our other intangible assets, primarily brands, to determine if they are finite or indefinite-lived. Reaching a determination on useful life requires significant judgments and assumptions regarding the future effects of obsolescence, demand, competition, other economic factors (such as the stability of the industry, known technological advances and expected changes in distribution channels), the level of required maintenance expenditures, and the expected lives of other related groups of assets.

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Our estimate of the fair value of our brand assets is based on a discounted cash flow model and a market-based approach using inputs which include projected revenues from our long-range plan, assumed royalty rates that could be payable if we did not own the brands, and a discount rate. The cash flows used in the discounted cash flow model are consistent with those we use in our internal planning, which gives consideration to actual business trends experienced and the long-term business strategy.
We performed our 2025 impairment assessment of our intangible assets as of the first day of the third quarter using a qualitative assessment, concluding that no impairment indicators were found to be present.
New Accounting Standards
See Item 8, Note 1 to the Consolidated Financial Statements for a description of recent accounting standards and their anticipated effects on our Consolidated Financial Statements.
Forward Looking Statements
Certain matters contained in this report concerning our plans and expectations regarding the pending Kenvue Acquisition, as defined in Item 8, Note 4 to the Consolidated Financial Statements (referred to below and within Item 1A, "Risk Factors" as the "pending mergers" or the "mergers") and the pending IFP Transaction, as defined in Item 8, Note 1 to the Consolidated Financial Statements, 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 successful completion of the mergers and the achievement of future cost savings and projected volume increases. In addition, many factors outside our control, including risks and uncertainties around the pending mergers (including the risk that the anticipated benefits and synergies of the mergers may not be realized when expected or at all, the terms and scope of the expected financing in connection with the mergers may prove to be less favorable than currently expected, that the mergers may not be completed in a timely matter or at all and the risk of litigation related to the mergers), the pending IFP Transaction (including risks related to delays or failure to complete the proposed transaction, the incurrence of significant transaction and separation costs, adverse market reactions, regulatory or legal challenges, and operational disruptions), risks 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), government trade or similar regulatory actions (including current and potential trade and tariff actions affecting the countries where we operate and the resulting negative impacts on our supply chain, commodity costs, and consumer spending), 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, 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 this Annual Report on Form 10-K, or in our other SEC filings, among others, could cause our future results to differ from those expressed in any forward-looking statements made

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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.

SUMMARY OF NON-GAAP FINANCIAL MEASURES
The following provides the reconciliation of the non-GAAP financial measures provided in this report to the most closely related GAAP measure. These measures include: Organic Sales Growth, Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Earnings per Share, and Adjusted Effective Tax Rate. All discussions regarding non-GAAP financial measures reflect results from our continuing operations for all periods presented.
• Organic Sales Growth is defined as the change in Net Sales, as determined in accordance with U.S. GAAP, excluding the impacts of currency translation and divestitures and business exits.
• Adjusted Gross and Operating Profit, Adjusted Earnings per Share, and Adjusted Effective Tax Rate are defined as Gross Profit, Operating Profit, Diluted Earnings per Share, and Effective Tax Rate, respectively, as determined in accordance with U.S. GAAP, excluding the impacts of certain items that management believes do not reflect our underlying operations, and which are discussed in further detail below.
The income tax effect of these non-GAAP items on the Company's Adjusted Earnings per Share 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 from Continuing Operations Before Income Taxes and Equity Interests and Provision for income taxes.
We use these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that we do not believe reflect our underlying and ongoing operations. We believe that presenting these non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliation to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures.
These 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 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.
The non-GAAP financial measures exclude the following items for the relevant time periods:
• 2024 Transformation Initiative - We initiated this transformation to create a more agile and focused operating structure that will accelerate our proprietary pipeline of innovation in right-to-win spaces and improve our growth trajectory, profitability, and returns on investment. See Item 8, Note 2 to the Consolidated Financial Statements for details.
• Kenvue Acquisition - Acquisition-related costs incurred in connection with the pending Kenvue Acquisition, primarily related to external advisory, legal, accounting, and other related costs. See Item 8, Note 4 to the Consolidated Financial Statements for details.
• U.S. Tax Reform Related Matters (OBBBA) - In 2025, we recognized a valuation allowance on prior year U.S. foreign tax credits as a result of provisions within the OBBBA that impact our ability to use the credits.

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• IFP Repatriated Earnings – In connection with the IFP Transaction, we recognized a deferred tax liability for certain permanently reinvested earnings from the IFP Business that are expected to be repatriated prior to the close of the transaction.
• Sale of PPE Business - In 2024, we recognized a gain related to the sale of our PPE business. See Item 8, Note 4 to the Consolidated Financial Statements for details.
• Impairment of Intangible Assets - In 2024, we recognized charges related to the impairment of certain intangible assets related to Softex and Thinx. See Item 8, Note 5 to the Consolidated Financial Statements for details.
• Legal Expense - In 2024, we incurred certain costs related to litigation and regulatory matters for a previously exited business.
• Softex Tax Reserve Release - In 2024, we released a reserve for an uncertain tax position related to the prior year impairment of certain Softex intangible assets.
The following table provides a reconciliation of Organic Sales Growth from continuing operations:

Year Ended December 31, 2025
Percent change vs. the prior year period
NA IPC Total
Net Sales Growth (2.4) (0.9) (2.1)
Currency Translation 0.2   2.3   0.9  
Divestitures and Business Exits 4.0   0.3   2.9  
Organic Sales Growth (a)
1.8   1.7   1.7  

(a)    Table may not foot due to rounding.
The following table provides a reconciliation of Adjusted Gross Profit from continuing operations:

Year Ended December 31
2025 2024
Gross Profit $ 5,923   $ 6,289 
2024 Transformation Initiative 213   144 

Adjusted Gross Profit $ 6,136   $ 6,433 

The following table provides a reconciliation of Adjusted Operating Profit from continuing operations:

Year Ended December 31
2025 2024
Operating Profit $ 2,351   $ 2,700 
2024 Transformation Initiative 348   456 
Kenvue Acquisition 32   — 
Sale of PPE Business —   (565)
Impairment of Intangible Assets —   97 
Legal Expense —   39 

Adjusted Operating Profit $ 2,731   $ 2,727 

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The following table provides a reconciliation of Adjusted Earnings per Share from continuing operations:

Year Ended December 31
2025 2024
Diluted Earnings per Share $ 4.86   $ 6.41 
2024 Transformation Initiative 0.86   1.01 
Kenvue Acquisition 0.07   — 
OBBBA 0.29   — 
IFP Repatriated Earnings 0.04   — 
Sale of PPE Business —   (1.34)
Impairment of Intangible Assets —   0.17 
Legal Expense —   0.11 
Softex Tax Reserve Release —   (0.20)

Adjusted Earnings per Share (a)
$ 6.12   $ 6.16 

(a)     The non-GAAP adjustments included above are presented net of tax. 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. Refer to the Adjusted Effective Tax Rate reconciliation below for the tax effect of these adjustments on the Company's reported Provision for income taxes.
The following table provides a reconciliation of the continuing operations Adjusted Effective Tax Rate:

Year Ended December 31
2025 2024
Income From Continuing Operations Before Income Taxes and Equity Interests Provision for Income Taxes Income From Continuing Operations Before Income Taxes and Equity Interests Provision for Income Taxes
As Reported $ 2,052   $ (599) $ 2,418  $ (442)
2024 Transformation Initiative 351   (56) 457  (118)
Kenvue Acquisition 32   (8) —  — 
OBBBA —   96   —  — 
IFP Repatriated Earnings —   13   —  — 
Sale of PPE Business —   —   (565) 112 
Impairment of Intangible Assets —   —   97  (40)
Legal Expense —   —   39  (1)
Softex Tax Reserve Release —   —   —  (67)

As Adjusted $ 2,435   $ (554) $ 2,446  $ (556)

Effective Tax Rate:
As Reported 29.2 % 18.3 %
As Adjusted 22.8 % 22.7 %

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ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a multinational enterprise, we are exposed to risks such as changes in foreign currency exchange rates, interest rates and commodity prices. A variety of practices are employed to manage these risks, including operating and financing activities and, where deemed appropriate, the use of derivative instruments. Derivative instruments are used only for risk management purposes and not for speculation, and are primarily entered into with major financial institutions. Our credit exposure under these arrangements is limited to agreements with a positive fair value at the reporting date. Credit risk with respect to the counterparties is actively monitored but is not considered significant since these transactions are executed with a diversified group of financial institutions.
Presented below is a description of our risks (foreign currency risk and interest rate risk) together with a sensitivity analysis, performed annually, of each of these risks based on selected changes in market rates and prices. These analyses reflect management's view of changes which are reasonably possible to occur over a one-year period. Also included is a description of our commodity price risk.
Foreign Currency Risk
A portion of our foreign currency risk is managed through the systematic use of foreign currency forward contracts. The use of these instruments supports the management of transactional exposures to exchange rate fluctuations as the gains or losses incurred on the derivative instruments will offset, in whole or in part, gains or losses on the underlying foreign currency exposure. We also utilize cross-currency swaps and foreign denominated debt to hedge certain investments in foreign subsidiaries. The gain or loss on these instruments is recognized in other comprehensive income to offset the change in value of the net investments being hedged.
Foreign currency contracts and transactional exposures are sensitive to changes in foreign currency exchange rates. An annual test is performed to quantify the effects that possible changes in foreign currency exchange rates would have on annual operating profit based on our foreign currency contracts and transactional exposures at the current year-end. The balance sheet effect is calculated by multiplying each affiliate's net monetary asset or liability position by a 10% change in the foreign currency exchange rate versus the U.S. dollar.
As of December 31, 2025, a 10% unfavorable change in the exchange rate of the U.S. dollar against the prevailing market rates of foreign currencies involving balance sheet transactional exposures would not be material to our consolidated financial position, results of operations or cash flows. This hypothetical loss on transactional exposures is based on the difference between the December 31, 2025 rates and the assumed rates.
Our operations in Argentina ("K-C Argentina") are reported using highly inflationary accounting and their functional currency is the U.S. dollar. Changes in the value of an Argentine peso versus the U.S. dollar applied to our net peso monetary position are recorded in Other (income) and expense, net at the time of the change. As of December 31, 2025, K-C Argentina had an immaterial net peso monetary position and a 10% unfavorable change in the exchange rate would not be material.
As of April 1, 2022, we adopted highly inflationary accounting for our operations in Türkiye (“K-C Türkiye”), and their functional currency is also the U.S. dollar. Changes in the value of a Turkish lira versus the U.S. dollar applied to our net lira monetary position are recorded in Other (income) and expense, net at the time of the change. As of December 31, 2025, K-C Türkiye had an immaterial net lira monetary position and a 10% unfavorable change in the exchange rate would not be material.
The translation of the balance sheets of non-U.S. operations from local currencies into U.S. dollars is also sensitive to changes in foreign currency exchange rates. Consequently, an annual test is performed to determine if changes in currency exchange rates would have a significant effect on the translation of the balance sheets of non-U.S. operations into U.S. dollars. These translation gains or losses are recorded as unrealized translation adjustments ("UTA") within stockholders' equity. The hypothetical change in UTA is calculated by multiplying the net assets of these non-U.S. operations by a 10% change in the currency exchange rates. As of December 31, 2025, a 10% unfavorable change in the exchange rate of the U.S. dollar against the prevailing market rates of our foreign currency translation exposures would have reduced stockholders' equity by approximately $600. In the view of

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management, the above potential UTA adjustments resulting from these assumed changes in foreign currency exchange rates are not material to our consolidated financial position because they would not affect our cash flow.
Interest Rate Risk
Interest rate risk is managed through the maintenance of a portfolio of variable and fixed-rate debt composed of short and long-term instruments. The objective is to maintain a cost-effective mix that management deems appropriate. As of December 31, 2025, the long-term debt portfolio was comprised of primarily fixed-rate debt. From time to time, we also hedge the anticipated issuance of fixed-rate debt and those contracts are designated as ca sh flow hedges.
As of December 31, 2025, a 1 percentage point increase in the applicable interest rates of our variable-rate debt would not materially impact the amount of interest expense recognized for the year ended December 31, 2025.
Commodity Price Risk
We are subject to commodity price risk, the most significant of which relates to the price of pulp and petroleum-based materials. Selling prices of products are influenced, in part, by the market price for these pulp and petroleum-based materials. As previously discussed under Item 1A, "Risk Factors," increases in pulp or petroleum-based material prices could adversely affect earnings if selling prices are not adjusted or if such adjustments significantly trail the increases in commodity prices. In some instances, we use contracts of varying durations along with strategic pricing mechanisms to manage volatility for a portion of our commodity costs.
Our energy, manufacturing and transportation costs are affected by various market factors including the availability of supplies of particular forms of energy, energy prices and local and national regulatory decisions. As previously discussed under Item 1A, "Risk Factors," there can be no assurance we will be fully protected against substantial changes in the price or availability of energy sources. In addition, we are subject to price risk for utilities and manufacturing inputs, used in our manufacturing operations. Derivative instruments are used in accordance with our risk management policy to hedge a portion of the price risk.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA  

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

Year Ended December 31
(In millions, except per share amounts) 2025 2024 2023
Net Sales $ 16,447   $ 16,805   $ 17,146  
Cost of products sold 10,524   10,516   10,877  
Gross Profit 5,923   6,289   6,269  
Marketing, research and general expenses 3,528   3,930   3,615  
Impairment of intangible assets —   97   658  
Other (income) and expense, net 44   ( 438 ) 68  
Operating Profit 2,351   2,700   1,928  
Nonoperating expense ( 67 ) ( 60 ) ( 95 )
Interest income 24   48   66  
Interest expense ( 256 ) ( 270 ) ( 293 )
Income from Continuing Operations Before Income Taxes and Equity Interests 2,052   2,418   1,606  
Provision for income taxes ( 599 ) ( 442 ) ( 343 )
Income from Continuing Operations Before Equity Interests 1,453   1,976   1,263  
Share of net income of equity companies 196   216   196  
Income from Continuing Operations 1,649   2,192   1,459  
Income from Discontinued Operations, Net of Income Taxes 400   386   305  
Net Income 2,049   2,578   1,764  
Net income attributable to noncontrolling interests ( 28 ) ( 33 ) —  
Net Income Attributable to Kimberly-Clark Corporation $ 2,021   $ 2,545   $ 1,764  

Per Share Basis
Net Income Attributable to Kimberly-Clark Corporation
Basic:
Continuing operations $ 4.88   $ 6.43   $ 4.32  
Discontinued operations 1.21   1.15   0.90  
Basic Earnings per Share $ 6.09   $ 7.58   $ 5.22  

Diluted:
Continuing operations $ 4.86   $ 6.41   $ 4.31  
Discontinued operations 1.21   1.14   0.90  
Diluted Earnings per Share $ 6.07   $ 7.55   $ 5.21  

See Notes to the Consolidated Financial Statements.

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Year Ended December 31
(In millions) 2025 2024 2023
Net Income $ 2,049   $ 2,578   $ 1,764  
Other Comprehensive Income (Loss), Net of Tax
   Unrealized currency translation adjustments 398   ( 408 ) 89  
   Employee postretirement benefits 16   24   ( 15 )
   Cash flow hedges ( 92 ) 188   12  
Total Other Comprehensive Income (Loss), Net of Tax 322   ( 196 ) 86  
Comprehensive Income 2,371   2,382   1,850  
Comprehensive (income) loss attributable to noncontrolling interests ( 28 ) ( 21 ) 1  
Comprehensive Income Attributable to Kimberly-Clark Corporation $ 2,343   $ 2,361   $ 1,851  

See Notes to the Consolidated Financial Statements.

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KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

December 31
(In millions, except par value) 2025 2024
ASSETS
Current Assets
Cash and cash equivalents $ 688   $ 1,010  
Accounts receivable, net 1,892   1,728  
Inventories 1,475   1,452  
Other current assets 535   694  
Current assets of discontinued operations 720   696  
Total Current Assets 5,310   5,580  
Property, Plant and Equipment, Net 6,775   6,284  
Investments in Equity Companies 330   314  
Goodwill 1,839   1,796  
Other Intangible Assets, Net 77   80  
Other Assets 1,062   984  
Non-current Assets of Discontinued Operations 1,705   1,508  
TOTAL ASSETS $ 17,098   $ 16,546  

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Debt payable within one year $ 694   $ 564  
Trade accounts payable 3,388   3,264  
Accrued expenses and other current liabilities 1,888   2,091  
Dividends payable 415   402  
Current liabilities of discontinued operations 740   683  
Total Current Liabilities 7,125   7,004  
Long-Term Debt 6,474   6,854  
Non-current Employee Benefits 605   628  
Deferred Income Taxes 445   300  
Other Liabilities 646   609  
Non-current Liabilities of Discontinued Operations 151   139  
Redeemable Preferred Securities of Subsidiaries 22   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;
issue d 378.6 million shares as of December 31, 2025 and 2024
473   473  
Additional paid-in capital 849   862  
Common stock held in treasury, at cost - 46.7 and 46.8 million
shares as of December 31, 2025 and 2024, respectively
( 5,987 ) ( 5,986 )
Retained earnings 9,611   9,257  
Accumulated other comprehensive income (loss) ( 3,444 ) ( 3,766 )
Total Kimberly-Clark Corporation Stockholders' Equity 1,502   840  
Noncontrolling Interests 128   135  
Total Stockholders' Equity 1,630   975  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 17,098   $ 16,546  

See Notes to the Consolidated Financial Statements.

44
KIMBERLY-CLARK CORPORATION - 2025 Annual Report

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(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 as of December 31, 2022 378,597   $ 473   $ 679   41,135   $ ( 5,137 ) $ 8,201   $ ( 3,669 ) $ 153   $ 700  
Net income in stockholders' equity (a)
—  —  —  —  —  1,764   —  37   1,801  
Other comprehensive income, net of tax (a)
—  —  —  —  —  —  87   ( 3 ) 84  
Stock-based awards exercised or vested —  —  ( 70 ) ( 1,327 ) 140   —  —  —  70  
Repurchases of common stock —  —  —  1,791   ( 225 ) —  —  —  ( 225 )
Recognition of stock-based compensation —  —  165   —  —  —  —  —  165  
Dividends declared ($ 4.72 per share)
—  —  —  —  —  ( 1,594 ) —  ( 35 ) ( 1,629 )
Other —  —  104   —  —  ( 3 ) —  1   102  
Balance as of December 31, 2023 378,597   473   878   41,599   ( 5,222 ) 8,368   ( 3,582 ) 153   1,068  
Net income in stockholders' equity (a)
—  —  —  —  —  2,545   —  31   2,576  
Other comprehensive income, net of tax (a)
—  —  —  —  —  —  ( 184 ) ( 12 ) ( 196 )
Stock-based awards exercised or vested —  —  ( 155 ) ( 2,027 ) 235   —  —  —  80  
Repurchases of common stock —  —  —  7,226   ( 1,000 ) —  —  —  ( 1,000 )
Recognition of stock-based compensation —  —  128   —  —  —  —  —  128  
Dividends declared ($ 4.88 per share)
—  —  —  —  —  ( 1,636 ) —  ( 35 ) ( 1,671 )
Other —  —  11   —  1   ( 20 ) —  ( 2 ) ( 10 )
Balance as of December 31, 2024 378,597   473   862   46,798   ( 5,986 ) 9,257   ( 3,766 ) 135   975  
Net income in stockholders' equity (a)
—   —   —   —   —   2,021   —   25   2,046  
Other comprehensive income, net of tax (a)
—   —   —   —   —   —   322   —   322  
Stock-based awards exercised or vested —   —   ( 161 ) ( 1,154 ) 147   —   —   —   ( 14 )
Repurchases of common stock —   —   —   1,055   ( 141 ) —   —   —   ( 141 )
Recognition of stock-based compensation —   —   135   —   —   —   —   —   135  
Dividends declared ($ 5.04 per share)
—   —   —   —   —   ( 1,673 ) —   ( 32 ) ( 1,705 )
Other —   —   13   —   ( 7 ) 6   —   —   12  
Balance as of December 31, 2025 378,597   $ 473   $ 849   46,699   $ ( 5,987 ) $ 9,611   $ ( 3,444 ) $ 128   $ 1,630  

(a)     Excludes redeemable interests' share.

See Notes to the Consolidated Financial Statements.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31
(In millions) 2025 2024 2023
Operating Activities
Net income $ 2,049   $ 2,578   $ 1,764  
Depreciation and amortization 805   781   753  
Asset impairments 18   114   676  

Stock-based compensation 140   131   169  
Deferred income taxes 241   ( 38 ) ( 322 )
Net (gains) losses on asset and business dispositions 39   ( 448 ) ( 75 )
Equity companies' earnings (in excess of) less than dividends paid ( 35 ) ( 62 ) ( 59 )
Operating working capital ( 503 ) 178   582  
Postretirement benefits 15   3   24  
Other 8   ( 3 ) 30  
Cash Provided by Operations 2,777   3,234   3,542  
Investing Activities
Capital spending ( 1,138 ) ( 721 ) ( 766 )

Proceeds from asset and business dispositions 33   651   245  
Investments in time deposits ( 447 ) ( 605 ) ( 720 )
Maturities of time deposits 552   562   815  
Other 49   13   8  
Cash Used for Investing ( 951 ) ( 100 ) ( 418 )
Financing Activities
Cash dividends paid ( 1,660 ) ( 1,628 ) ( 1,588 )
Change in short-term debt 275   1   ( 371 )
Debt proceeds —   —   363  
Debt repayments ( 550 ) ( 554 ) ( 475 )
Proceeds from exercise of stock options 40   136   97  
Repurchases of common stock ( 141 ) ( 1,000 ) ( 225 )
Cash paid for redemption of common securities of Thinx —   —   ( 95 )
Cash dividends paid to noncontrolling interests ( 32 ) ( 35 ) ( 35 )
Other ( 111 ) ( 86 ) ( 45 )
Cash Used for Financing ( 2,179 ) ( 3,166 ) ( 2,374 )
Effect of Exchange Rate Changes on Cash and Cash Equivalents 33   ( 40 ) ( 84 )
Change in Cash and Cash Equivalents ( 320 ) ( 72 ) 666  

Cash and cash equivalents from continuing operations - beginning of period 1,010   1,075   413  
Cash and cash equivalents from discontinued operations - beginning of period (a)
11   18   14  
Cash and Cash Equivalents - Beginning of Year 1,021   1,093   427  

Cash and cash equivalents from continuing operations - end of period 688   1,010   1,075  
Cash and cash equivalents from discontinued operations - end of period (a)
13   11   18  
Cash and Cash Equivalents - End of Year $ 701   $ 1,021   $ 1,093  

(a)     Included in Current assets of discontinued operations.

See Notes to the Consolidated Financial Statements.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1.     Accounting Policies
Basis of Presentation
The Consolidated Financial Statements present the accounts of Kimberly-Clark Corporation and all subsidiaries in which it has a controlling financial interest as if they were a single economic entity in conformity with accounting principles generally accepted in the United States of America ("GAAP"). All intercompany transactions and accounts are eliminated in consolidation. The terms "Corporation," "Company," "Kimberly-Clark," "we," "our," and "us" refer to Kimberly-Clark Corporation and all subsidiaries in which it has a controlling financial interest. Amounts are reported in millions of dollars, except per share amounts, unless otherwise noted.
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, the results of the IFP Business are reported as discontinued operations in the accompanying 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 Consolidated Balance Sheets for all periods presented, and the Company has ceased depreciating and amortizing the long-lived assets of the IFP Business. The 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 Consolidated Financial Statements reflect only Kimberly-Clark's continuing operations. See Note 3 for additional details.
Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Estimates are used in accounting for, among other things, sales incentives and trade promotion allowances, employee postretirement benefits, deferred income taxes and potential assessments, and valuation of goodwill and intangible assets.
Cash Equivalents
Cash equivalents are short-term investments with an original maturity date of three months or less.
Inventories and Distribution Costs
Most U.S. inventories are valued at the lower of cost, using the Last-In, First-Out ("LIFO") method, or market. The balance of the U.S. inventories and inventories of consolidated operations outside the U.S. are valued at the lower of cost or net realizable value using either the First-In, First-Out ("FIFO") or weighted-average cost methods. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Distribution costs are classified as cost of products sold.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Property and Depreciation
Property, plant and equipment are stated at cost and are depreciated on the straight-line method. Buildings are depreciated over their estimated useful lives, primarily 40 years. Machinery and equipment are depreciated over their estimated useful lives, primarily ranging from 16 to 20 years. Purchases of computer software, including external costs and certain internal costs (including payroll and payroll-related costs of employees) directly associated with developing significant computer software applications for internal use, are capitalized. Computer software costs are amortized on the straight-line method over the estimated useful life of the software, which generally does not exceed 5 years.
Estimated useful lives are periodically reviewed and, when warranted, changes are made to them. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss would be indicated when estimated undiscounted future cash flows from the use and eventual disposition of an asset group, which are identifiable and largely independent of the cash flows of other asset groups, are less than the carrying amount of the asset group. Measurement of an impairment loss would be based on the excess of the carrying amount of the asset group over its fair value. Fair value is measured using discounted cash flows or independent appraisals, as appropriate. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the Consolidated Balance Sheets and any gain or loss on the transaction is included in income.
Goodwill and Other Intangible Assets
Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is not amortized, but rather is assessed for impairment annually on the first day of our third fiscal quarter and whenever events and circumstances indicate that impairment may have occurred. Impairment testing compares the reporting unit carrying amount, including goodwill, with its fair value. If the reporting unit carrying amount, including goodwill, exceeds its fair value, a goodwill impairment charge for the excess amount above fair value would be recorded. In our evaluation of goodwill impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of each reporting unit is more than its carrying value. Qualitative factors include macroeconomic, industry and competitive conditions, legal and regulatory environments, historical and projected financial performance, significant changes in the reporting unit and the magnitude of excess fair value over carrying amount from the previous quantitative impairment testing. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test to estimate fair value must be performed. This quantitative estimate of fair value is based on a discounted cash flow model and a market-based approach. We use inputs from our long-range planning process to determine growth rates for sales and earnings. The other key estimates and factors used in the discounted cash flow model include, but are not limited to, discount rates, actual business trends experienced, commodity prices, foreign exchange rates, inflation and terminal growth rates.
Indefinite-lived intangible assets, other than goodwill, consist of certain brand names related to our acquisition of Softex Indonesia and are tested for impairment annually at the same time as our goodwill impairment assessment and whenever events and circumstances indicate that impairment may have occurred. Our estimate of the fair value of our brand assets is based on a discounted cash flow model and a market-based approach using in puts which include projected revenues from our long-range plan, assumed royalty rates that could be payable if we did not own the brands, and a discount rate.
Intangible assets with finite lives are amortized over their estimated useful lives, generally ranging from 4 to 20 years, and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss would be indicated when estimated undiscounted future cash flows from the use of the asset are less than its carrying amount. An impairment loss would be measured as the difference between the fair value (based on discounted future cash flows) and the carrying amount of the asset.

48
KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Investments in Equity Companies
Investments in companies which we do not control but over which we have the ability to exercise significant influence are accounted for under the equity method of accounting and are stated at cost plus equity in undistributed net income. These investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the investments might not be recoverable. An impairment loss would be recorded whenever a decline in value of an equity investment below its carrying amount is determined to be other than temporary. In judging "other than temporary," we would consider the length of time and extent to which the fair value of the equity company investment has been less than the carrying amount, the near-term and longer-term operating and financial prospects of the equity company, and our longer-term intent of retaining the investment in the equity company.
Revenue Recognition
Sales revenue is recognized at the time of product shipment or delivery, depending on when control passes, to unaffiliated customers, and when all of the following have occurred: a firm sales agreement is in place, pricing is fixed or determinable, and collection is reasonably assured. Sales are reported net of returns, consumer and trade promotions, rebates and freight allowed. Taxes imposed by governmental authorities on our revenue-producing activities with customers, such as sales taxes and value-added taxes, are excluded from net sales.
Sales Incentives and Trade Promotion Allowances
The cost of promotion activities provided to customers is classified as a reduction in sales revenue. In addition, the estimated redemption value of consumer coupons and related expense are recorded when the related revenue from customers is realized. Rebate and promotion accruals are based on estimates of the quantity of customer sales. Promotion accruals also consider estimates of the number of consumer coupons that will be redeemed and timing and costs of activities within the promotional programs.
Advertising Expense
Advertising costs are expensed in the year the related advertisement or campaign is first presented through traditional or digital media. For interim reporting purposes, advertising expenses are charged to operations as a percentage of sales based on estimated sales and related advertising expense for the full year.
Research Expense
Research and development costs are charged to expense as incurred.
Other Income and Expense, Net
Other (income) and expense, net primarily includes gains and losses associated with business divestitures and acquisitions, re-measurement adjustments for financial statements in highly inflationary economies and other transactional exchange gains and losses.
Foreign Currency Translation
The income statements of foreign operations, other than those in highly inflationary economies, are translated into U.S. dollars at rates of exchange in effect each month. The balance sheets of these operations are translated at period-end exchange rates, and the differences from historical exchange rates are reflected in stockholders' equity as unrealized translation adjustments. 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 December 31, 2025, K-C Argentina had an immaterial net peso monetary position. Net sales of K-C Argentina were approximately 1 % of our net sales in 2025, 2024 and 2023 .

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

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 December 31, 2025, K-C Türkiye had an immaterial net lira monetary position. Net sales of K-C Türkiye were less than 1 % of our net sales in 2025, 2024, and 2023.
Derivative Instruments and Hedging
Our policies allow the use of derivatives for risk management purposes and prohibit their use for speculation. Our policies also prohibit the use of any leveraged derivative instrument. Our derivative instruments are primarily entered into with a diversified group of major financial institutions, which limits our credit exposure under these arrangements. At inception, we formally designate certain derivatives as cash flow, fair value or net investment hedges and establish how the effectiveness of these hedges will be assessed and measured. This process links the derivatives to the transactions or financial balances they are hedging. Changes in the fair value of derivatives not designated as hedging instruments are recorded in earnings as they occur. All derivative instruments are recorded as assets or liabilities on the balance sheet at fair value. Changes in the fair value of derivatives are either recorded in the income statement or other comprehensive income, as appropriate. The gain or loss on derivatives designated as fair value hedges and the offsetting loss or gain on the hedged item attributable to the hedged risk are included in income in the period that changes in fair value occur. The gain or loss on derivatives designated as cash flow hedges is included in other comprehensive income in the period that changes in fair value occur, and is reclassified to income in the same period that the hedged item affects income. The gain or loss on derivatives designated as hedges of investments in foreign subsidiaries is recognized in other comprehensive income to offset the change in value of the net investments being hedged. Certain foreign-currency and commodity derivative instruments, not designated as hedging instruments, have been entered into to manage certain non-functional currency denominated monetary assets and liabilities, as well as changes in prices of certain commodities, respectively. The gain or loss on these derivatives is included in income in the period that changes in their fair values occur. Cash flows from derivatives are classified within the Consolidated Statements of Cash Flows in the same category as the items being hedged. Cash flows from derivatives are classified within Operating Activities, except for derivatives designated as net investment hedges which are classified in Investing Activities. See Note 13 for disclosures about derivative instruments and hedging activities.
Leases
Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised.
Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain nonlease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term.
Certain lease agreements with lease and nonlease components are combined as a single lease component. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
Accounting Standards - Adopted as of December 31, 2025
In December 2023, the FASB issued ASU No. 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. We adopted this

50
KIMBERLY-CLARK CORPORATION - 2025 Annual Report

ASU in the fourth quarter of 2025 and added certain disclosures in Note 14, Income Taxes. The disclosures were applied retrospectively and impacted all prior periods presented. As the guidance requires only additional disclosure, there were no effects of this standard on our financial position, results of operations or cash flows.
In May 2025, the FASB issued ASU No. 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810) to clarify the guidance regarding the identification of the accounting acquirer in a business combination in which the legal acquiree is a variable interest entity. The amendments in this ASU are effective for fiscal years beginning after December 15, 2026, and interim periods within those annual periods. Early adoption is permitted, and the amendments should be applied on a prospective basis. We adopted this ASU in the fourth quarter of 2025 and there was no impact to our Consolidated Financial Statements.
Accounting Standards Issued - Not Adopted as of December 31, 2025
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.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350) to modernize the accounting guidance for internal-use software costs. The new guidance eliminates software development stages and clarifies when to begin capitalizing eligible software costs. The amendments in this ASU are effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years, with early adoption permitted. The amendments can be applied on a prospective basis, a modified basis for in-process projects or a retrospective basis. We are currently evaluating the impact of this update on our Consolidated Financial Statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-10, Government Grants (Topic 832) to establish guidance on the recognition, measurement and presentation of government grants received by business entities . The amendments in this ASU are effective for fiscal years beginning after December 15, 2028, and interim periods within those fiscal years, with early adoption permitted. The amendments can be applied on a modified prospective basis, a modified retrospective basis or a retrospective basis. 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 December 31, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $ 808 ($ 634 after-tax).

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

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

Year Ended December 31
2025 2024
Cost of products sold:
Charges for workforce reductions $ 21   $ 69  

Asset write-offs 38   27  
Incremental depreciation 125   38  
Other exit costs 29   10  
Total 213   144  
Marketing, research and general expenses:
Charges for workforce reductions 28   116  
Other exit costs 114   112  
Total 142   228  
Other (income) and expense, net (a)
( 7 ) 84  
Nonoperating expense 3   1  
Total charges (b)
351   457  
Provision for income taxes ( 56 ) ( 118 )
Net charges 295   339  
Net charges related to noncontrolling interests ( 7 ) —  
Net charges attributable to Kimberly-Clark Corporation $ 288   $ 339  

(a) Other (income) and expense, net includes gains and losses from the sale of manufacturing facilities and associated real estate and 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 would have been $ 198 and $ 135 , respectively, for the year ended December 31, 2025, and $ 147 and $ 187 , respectively, for the year ended December 31, 2024, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 16.
The following summarizes the 2024 Transformation Initiative liabilities activity:

Year Ended December 31
2025 2024
2024 Transformation Initiative liabilities as of January 1 $ 130   $ —  
Charges for workforce reductions and other cash exit costs 176   291  
Cash payments ( 229 ) ( 156 )
Currency and other ( 15 ) ( 5 )
2024 Transformation Initiative liabilities as of December 31 $ 62   $ 130  

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 Consolidated Statements of Cash Flows.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

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:

Year Ended December 31
2025 2024 2023
Net Sales $ 3,254   $ 3,253   $ 3,285  
Cost of products sold 2,319   2,362   2,522  
Gross Profit 935   891   763  
Marketing, research and general expenses 413   381   346  
Other (income) and expense, net 2   —   1  
Operating Profit 520   510   416  
Nonoperating expense 1   ( 1 ) ( 1 )
Income from discontinued operations before income taxes 521   509   415  
Provision for income taxes ( 121 ) ( 123 ) ( 110 )
Income from Discontinued Operations, Net of Income Taxes $ 400   $ 386   $ 305  

As a result of the IFP Transaction, we incurred separation costs of $ 77 for the year ended December 31, 2025, which are included in the reported amounts above. 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:

Year Ended December 31
2025 2024 2023
Depreciation and Amortization $ 68   $ 133   $ 115  
Capital Spending 118   116   100  

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

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

December 31
2025 2024
Assets
Cash and cash equivalents $ 13   $ 11  
Accounts receivable, net 302   281  
Inventories 383   370  
Other current assets 22   34  
Current Assets of Discontinued Operations $ 720   $ 696  

Property, Plant and Equipment, Net $ 1,425   $ 1,229  

Goodwill 179   168  
Other Intangible Assets, Net 7   7  
Other Assets 94   104  
Non-current Assets of Discontinued Operations $ 1,705   $ 1,508  

Liabilities
Debt payable within one year $ 4   $ 4  
Trade accounts payable 500   451  
Accrued expenses and other current liabilities 236   228  

Current Liabilities of Discontinued Operations $ 740   $ 683  

Long-Term Debt $ 18   $ 21  
Non-current Employee Benefits 18   15  
Deferred Income Taxes 32   26  
Other Liabilities 83   77  
Non-current Liabilities of Discontinued Operations $ 151   $ 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.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Note 4 .     Acquisitions and Divestitures
Pending Acquisition of Kenvue, Inc.
On November 2, 2025, we entered into an Agreement and Plan of Merger (the "Merger Agreement") to acquire the outstanding equity interests of Kenvue, Inc. ("Kenvue"), a global consumer health leader, for stock and cash consideration (the "Kenvue Acquisition"). Under the terms of the Merger Agreement, which was unanimously approved by the Boards of Directors of each of Kimberly-Clark and Kenvue, each share of Kenvue common stock, par value $ 0.01 per share, issued and outstanding at the close of the Kenvue Acquisition (subject to certain provisions within the Merger Agreement) will be converted into the right to receive (i) 0.14625 shares of Kimberly-Clark common stock, par value $ 1.25 per share (the "Stock Consideration"), plus (ii) $ 3.50 in cash (the "Cash Consideration" and, together with the Stock Consideration, the "Merger Consideration"). In total, we expect approximately 280 million shares of common stock to be issued and approximately $ 6.7 billion to be paid for the Merger Consideration. The Cash Consideration is expected to be funded through a combination of cash on hand, proceeds from new debt issuance, and proceeds from the IFP Transaction. The actual value of the transaction will fluctuate based upon changes in the price of Kimberly-Clark common stock and the number of shares of Kenvue common stock outstanding at the time of closing.
On January 29, 2026, Kimberly-Clark and Kenvue each held a special meeting of their respective stockholders. During the respective meetings, Kimberly-Clark stockholders approved by requisite vote the issuance of Kimberly-Clark common stock as consideration to holders of Kenvue common stock, and Kenvue stockholders adopted by the requisite vote the Merger Agreement. Additionally, the waiting period applicable to the Kenvue Acquisition under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired on February 4, 2026. Completion of the Kenvue Acquisition, which is expected to take place in the second half of 2026, remains subject to the satisfaction of other customary closing conditions, as described in the Merger Agreement, including the receipt of foreign regulatory approvals. The Merger Agreement also provides for certain termination rights, and under certain specified circumstances, both Kimberly-Clark and Kenvue may be required to pay the other a termination fee of $ 1.1 billion.
During the year ended December 31, 2025, we incurred $ 32 of acquisition-related costs in connection with the Kenvue Acquisition, which are included in Marketing, research and general expenses. As of December 31, 2025, Other current assets includes deferred share issuance costs of $ 6 that will be recognized in Additional paid-in capital upon issuance of the Stock Consideration discussed above.
Completed Acquisition
In the second quarter of 2023, we acquired additional ownership of Thinx, Inc. ("Thinx") for $ 48 , increasing our controlling 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.
Completed Divestitures
On July 1, 2024, we completed the sale transaction that was announced on April 7, 2024, of the personal protective equipment ("PPE") business 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.
On June 1, 2023, we completed the sale of our Neve tissue brand and related consumer and professional tissue assets in Brazil for $ 212 , including the base purchase price of $ 175 and working capital and other closing adjustments of $ 37 . This transaction also included a licensing agreement to allow the acquirer to manufacture and market in Brazil the Kleenex, Scott and Wypall brands to consumers and professional customers for a period of time. Upon closure of the transaction, a gain of $ 74 pre-tax was recognized in Other (income) and expense, net. We

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

incurred divestiture-related costs of $ 30 pre-tax, 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).

Note 5 .     Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill by reportable segment were as follows:

NA IPC Total
Balance as of December 31, 2023 $ 1,128   $ 766   $ 1,894  
Divestiture ( 15 ) —   ( 15 )
Effect of foreign currency translation —   ( 83 ) ( 83 )
Balance as of December 31, 2024 1,113   683   1,796  

Effect of foreign currency translation —   43   43  
Balance as of December 31, 2025 $ 1,113   $ 726   $ 1,839  

We completed our required annual assessment of goodwill for impairment for all our reporting uni ts using a qualitative assessment as of the first day of the third quarter of the year ended December 31, 2025, concluding that it was more likely than not that the fair value of each reporting unit significantly exceeded the respective carrying amounts.
The carrying amounts of Other Intangible Assets, Net, were as follows:

December 31
2025 2024
Gross Carrying Amount (b)
Accumulated Amortization (b)
Net
 Carrying
 Amount Gross Carrying Amount (b)
Accumulated Amortization (b)
Net
Carrying
Amount
Intangible assets with indefinite lives:
Brand names $ 44   $ —   $ 44   $ 46   $ —  $ 46  
Intangibles with finite lives:
Trademarks and brand names 53   ( 41 ) 12   53   ( 40 ) 13  
Other intangible assets (a)
34   ( 13 ) 21   33   ( 12 ) 21  
Total intangible assets with finite lives 87   ( 54 ) 33   86   ( 52 ) 34  
Total $ 131   $ ( 54 ) $ 77   $ 132   $ ( 52 ) $ 80  

(a)    Other intangible assets primarily include customer and distributor relationships.
(b)    Amounts reflect impairments noted below and are subject to foreign currency adjustments.
Amortization expense relating to the intangible assets with finite lives was $ 2 , $ 7 and $ 11 for the years ended December 31, 2025, 2024 and 2023, respectively. Based on the carrying values of the intangible assets with finite lives as of December 31, 2025, amortization expense for each of the next five years is estimated to be approximately $ 2 .
For 2025, we completed the required annual assessment of indefinite-lived intangible assets, other than goodwill, for impairment using a qualitative assessment as of the first day of the third quarter, and we determined that it is more likely than not that the fair value is more than the carrying amount for each of these intangible assets.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

2024 Intangible Asset Impairment
During the third quarter of 2024, we revised internal financial projections for our Softex and Thinx businesses to reflect updated expectations of future financial performance in light of current performance and as part of our re-organization efforts discussed in Note 2. As part of these revisions, we performed impairment assessments for our indefinite-lived brand names and finite-lived intangible assets, primarily brand names and distributor relationships. As a result of these assessments, we recognized impairment charges of $ 97 pre-tax ($ 57 after-tax) to write-down these intangible assets to their respective fair values. The valuation methods used in the assessments included the relief from royalty and distributor relationships methods. These impairment charges were primarily caused by increased attrition in our distributor relationships valuation model and the continued challenges arising from modified consumer shopping behavior in the post-COVID-19 period coupled with revisions to our long-term strategy and outlook. These noncash charges were included in Impairment of intangible assets in our Consolidated Statements of Income and in Asset impairments within Operating Activities in our Consolidated Statements of Cash Flows.
2023 Intangible Asset Impairment
In the second quarter of 2023, we conducted forecasting and strategic reviews and integration assessments of our Softex Indonesia business, acquired in the fourth quarter of 2020, and with performance below expectations since acquisition, we revised internal financial projections of the business to reflect updated expectations of future financial performance. These reviews and the subsequent revisions in the projections highlighted challenges for the Softex business arising from modified consumer shopping behavior in the post-COVID-19 period, inflationary pressures and other macroeconomic factors and increased competitive activity in the region. As a result of separate management reviews, we also have revised internal financial projections associated with our acquisition of a controlling interest in Thinx as a result of performance below expectations due to the impact of modified consumer shopping behavior in the post-COVID-19 period.
These revisions were considered triggering events requiring interim impairment assessments to be performed relative to the intangible assets that had been recorded as part of these acquisitions. These intangible assets included indefinite-lived and finite-lived brands and finite-lived distributor and customer relationships. As a result of the interim impairment assessments, we recognized impairment charges, principally arising from the impairment charge of $ 593 related to the Softex business, totaling $ 658 pre-tax ($ 483 after-tax) to write-down these intangible assets to their respective fair values aggregating to $ 188 as of June 30, 2023. The valuation methods used in the assessments included the relief from royalty and distributor and customer relationships methods. This noncash charge was included in Impairment of intangible assets in our Consolidated Statements of Income and in Asset impairments within Operating Activities in our Consolidated Statements of Cash Flows.
We believe our estimates and assumptions used in the valuations are reasonable and comparable to those that would be used by other market participants; however, actual events and results could differ substantially from those used in the valuation, and to the extent such factors result in a failure to achieve the projected cash flows used to estimate fair value, additional noncash impairment charges could be required in the future.

Note 6.     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.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

During 2025 and 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 December 31, 2025 and 2024, derivative assets were $ 81 and $ 189 , respectively, and derivative liabilities were $ 191 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 13 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 December 31, 2025 and 2024, the securities were valued at $ 22 and $ 37 , respectively. 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 $ 71 as of December 31, 2025 and 2024. The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in Other Assets in the 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
December 31, 2025 December 31, 2024
Assets
Cash and cash equivalents (a)
1 $ 688   $ 688   $ 1,010   $ 1,010  
Time deposits (b)
1 94   94   181   181  
Non-US government bonds (c)
2 —   —   15   15  
Liabilities
Short-term debt (d)
2 282   282   3   3  
Long-term debt (e)
2 6,886   6,491   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 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 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.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Note 7.     Debt
Long-term debt is composed of the following:

Weighted-Average Interest Rate Maturities December 31
2025 2024
Notes and debentures 3.6 % 2026 - 2050 $ 6,784   $ 7,310  
Industrial development revenue bonds 3.7 % 2029 - 2045 59   59  
Bank loans and other financings in various currencies 5.9 % 2026 - 2046 43   46  
Total long-term debt 6,886   7,415  
Less current portion 412   561  
Long-term portion $ 6,474   $ 6,854  

Scheduled maturities of long-term debt for the next five years are $ 413 in 2026, $ 608 in 2027, $ 704 in 2028, $ 706 in 2029 and $ 745 in 2030.
In February 2023, we issued $ 350 aggregate principal amount of 4.50 % notes due February 16, 2033. Proceeds from the offering were used for general corporate purposes including the repayment of a portion of our commercial paper indebtedness.
Committed Bridge Financing
In November 2025, in connection with the Merger Agreement discussed in Note 4, the Company and JPMorgan Chase Bank, N.A. (the "Bank") executed a certain bridge loan facility commitment letter, pursuant to which the Bank has committed to provide bridge financing (the "Bridge Facility") in an amount of $ 7.7 billion to the Company to fund the Cash Consideration, the fees, costs and expenses incurred in connection with the transactions contemplated by the Merger Agreement and to repay certain existing indebtedness of Kenvue and/or its subsidiaries. In December 2025, $ 3.8 billion of the commitments in the Bridge Facility were terminated in connection with entry into the New Revolving Credit Facility and DDTL Credit Facility (as defined below). We incurred debt issuance costs of $ 15 in connection with the Bridge Facility, of which $ 8 was charged to earnings in connection with the termination of a portion of the commitments. The remaining unamortized amount is capitalized in Other current assets.
Revolving Credit and Delayed Draw Term Loan Agreements
In December 2025, we entered into (i) the Five -Year Revolving Credit Agreement by and among Kimberly-Clark, JPMorgan Chase Bank, N.A. (the "Bank") and the other lenders party thereto (the “New Revolving Credit Facility”) and (ii) the Delayed Draw Term Loan Credit Agreement by and among Kimberly-Clark, the Bank, and the other lenders party thereto (the “DDTL Credit Facility”). The New Revolving Credit Facility matures in December 2030 and provides for a revolving credit facility of up to $ 4.0 billion (which may be increased by up to $ 1.0 billion upon obtaining additional commitments from the then-existing or new lenders and the satisfaction of certain other conditions). The DDTL Credit Facility provides for a delayed draw term loan facility of up to $ 1.8 billion, which, along with $ 2.0 billion of the commitments under the New Revolving Credit Facility, will be available with limited conditionality to ensure certainty of funds to pay the Cash Consideration, the fees, costs and expenses incurred in connection with the transactions contemplated by the Merger Agreement and to repay certain existing indebtedness of Kenvue and/or its subsidiaries. The commitments under the DDTL Credit Facility will terminate upon the earlier of (i) the termination of the Merger Agreement or (ii) the closing of the transactions contemplated by the Merger Agreement without the borrowing of funds under the DDTL Credit Facility. Amounts borrowed under the DDTL Credit Facility are payable within one year, subject to certain mandatory prepayment conditions described in the DDTL Credit Facility.
Borrowings under the New Revolving Credit Facility and the DDTL Credit Facility will bear interest, at our option, at a rate equal to (i) a base rate (subject to a floor of 1.00 %) or (ii) a floating secured overnight financing rate (subject to a floor of 0.00 %) plus an applicable margin. The applicable margin will range from 0.50 % to 1.00 % depending on our credit rating and is initially 0.75 %.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

We capitalized debt issuance costs of $ 5 in connection with the facilities discussed above; the unamortized portion is presented in Other current assets. The New Revolving Credit Facility, currently unused, supports our commercial paper program, and would provide liquidity in the event our access to the commercial paper markets is unavailable for any reason.
Concurrently with the closing of the New Revolving Credit Facility and the DDTL Credit Facility, we terminated the commitments outstanding under our previous $ 750 revolving credit facility, originally set to mature in May 2026 and reduced the commitments outstanding under our existing $ 2.0 billion revolving credit facility, which matures in June 2028, to $ 1.0 billion.

Note 8.     Stock-Based Compensation
We have a stock-based Equity Participation Plan and an Outside Directors' Compensation Plan (the "Plans"), under which we can grant stock options, restricted share units ("RSUs") and other types of awards described further in the Plans to employees and outside directors. As of December 31, 2025, the number of shares of common stock available for grants under the Plans aggregated to 6.3 million shares. Unless specifically stated, the following reflects consolidated information for the Company inclusive of the IFP Business.
Stock options are granted at an exercise price equal to the fair market value of our common stock on the date of grant, and they have a term of 10  years. Stock options are subject to graded vesting whereby options vest 30 % at the end of each of the first two 12-month periods following the grant and 40 % at the end of the third 12-month period.
Time-vested RSUs are valued at the closing market price of our common stock on the grant date and are generally subject to graded vesting whereby shares vest 30 % at the end of each of the first two 12-month periods following the grant and 40 % at the end of the third 12-month period. Time-vested restricted share unit grants issued for special one-time awards and performance-based RSUs granted to employees are valued at the closing market price of our common stock on the grant date and vest generally at the end of three years . The number of performance-based RSUs that ultimately vest ranges from zero to 200 % of the number granted based on the attainment of performance metrics. Performance metrics are tied to modified free cash flow and organic sales growth during the three-year performance period. Modified free cash flow and organic sales growth targets are set at the beginning of the performance period. RSUs granted to outside directors are valued at the closing market price of our common stock on the grant date and vest when they are granted. These shares are subject to a restricted period that begins on the date of grant and expires within ninety days following the date the outside director retires from or otherwise terminates service on our Board.
At the time stock options are exercised or RSUs vest, common stock is issued from our accumulated treasury shares. Dividend equivalents are credited on RSUs on the same date and at the same rate as dividends are paid on Kimberly-Clark's common stock. These dividend equivalents, net of estimated forfeitures, are charged to retained earnings.
Stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award, net of estimated forfeitures, based on the fair value of the award at the date of grant. Stock-based compensation costs from continuing operations of $ 130 , $ 122 and $ 160 and related deferred income tax benefits of $ 25 , $ 27 and $ 34 were recognized for 2025, 2024 and 2023, respectively.
The fair value of stock option awards is determined on the date of grant using a Black-Scholes-Merton option-pricing model utilizing a range of assumptions related to dividend yield, volatility, risk-free interest rate, and historical employee exercise behavior. Dividend yield is based on historical experience and expected future dividend actions. Expected volatility is based on a blend of historical volatility and implied volatility from traded options on Kimberly-Clark's common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. We estimate forfeitures based on historical data.
During 2025, 2024 and 2023, no stock options were granted.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Total remaining unrecognized compensation costs and amortization periods for our outstanding stock-based awards are as follows:

December 31, 2025 Weighted-Average Service Years

Time-vested RSUs $ 71   1.3
Performance-based RSUs 16   1.6

A summary of stock-based compensation activity and related information for outstanding stock options and RSUs is presented below:

Stock Options Shares
(in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value
Outstanding as of January 1, 2025 2,976   $ 131.05  
Granted —   —  
Exercised ( 331 ) 124.47  
Forfeited or expired ( 69 ) 119.22  
Outstanding as of December 31, 2025 2,576   131.75   3.7 $ —  
Exercisable as of December 31, 2025 2,575   131.75   3.7 $ —  

The total intrinsic value of options exercised during 2025, 2024 and 2023 was $ 6 , $ 19 and $ 23 , respectively.

Time-Vested
RSUs Performance-Based
RSUs
RSUs Shares
(in thousands) Weighted-Average Grant-Date Fair Value Shares
(in thousands) Weighted-Average Grant-Date Fair Value
Nonvested as of January 1, 2025 1,392   $ 137.79   686   $ 134.87  
Granted 889   129.57   608   131.63  
Vested ( 698 ) 137.34   ( 557 ) 133.09  
Forfeited ( 134 ) 135.90   ( 41 ) 138.59  
Nonvested as of December 31, 2025 1,449   133.15   696   135.76  

The total fair value of RSUs that vested during 2025, 2024 and 2023 was $ 170 , $ 185 and $ 99 , respectively.

Note 9.     Employee Postretirement Benefits
Substantially all regular employees in the U.S. and the United Kingdom are covered by defined contribution retirement plans and certain U.S. and United Kingdom employees previously earned benefits covered by defined benefit pension plans that currently provide no future service benefit (the "Principal Plans"). Certain other subsidiaries have defined benefit pension plans or, in certain countries, termination pay plans covering substantially all regular employees. The funding policy for our qualified defined benefit pension plans is to contribute assets at least equal in amount to regulatory minimum requirements. Nonqualified U.S. plans providing pension benefits in excess of limitations imposed by the U.S. income tax code are not funded.
Substantially all U.S. retirees and employees have access to our unfunded health care and life insurance benefit plans. The annual increase in the consolidated weighted-average health care cost trend rate is expected to be 6.2 % in 2026 and to decline to 4.5 % in 2038 and thereafter. Assumed health care cost trend rates affect the amounts reported for postretirement health care benefit plans.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Summarized financial information about postretirement plans, excluding defined contribution retirement plans, is presented below:

Pension Benefits Other Benefits
Year Ended December 31
2025 2024 2025 2024
Change in Benefit Obligation
Benefit obligation at beginning of year $ 2,198   $ 2,428   $ 497   $ 531  
Service cost 10   11   4   4  
Interest cost 116   114   29   28  
Actuarial (gain) loss (a)
12   ( 129 ) ( 8 ) ( 3 )
Currency and other 88   ( 39 ) 6   ( 12 )
Benefit payments from plans ( 177 ) ( 174 ) —   —  
Direct benefit payments ( 8 ) ( 8 ) ( 48 ) ( 51 )
Settlements and curtailments ( 29 ) ( 5 ) —   —  
Benefit obligation at end of year 2,210   2,198   480   497  
Change in Plan Assets
Fair value of plan assets at beginning of year 2,060   2,295   —   —  
Actual return on plan assets 140   ( 32 ) —   —  
Employer contributions 14   14   —   —  
Currency and other 83   ( 39 ) —   —  
Benefit payments ( 177 ) ( 174 ) —   —  
Settlements ( 25 ) ( 4 ) —   —  
Fair value of plan assets at end of year 2,095   2,060   —   —  
Funded Status $ ( 115 ) $ ( 138 ) $ ( 480 ) $ ( 497 )

(a)    Actuarial (gains) losses in each period shown are primarily due to changes in discount rates.
Substantially all of the funded status of pension and other benefits is recognized in the Consolidated Balance Sheets in Noncurrent Employee Benefits, with the remainder recognized in Accrued expenses and other current liabilities and Other Assets. 
Information for the Principal Plans and All Other Pension Plans

Principal Plans All Other Pension Plans Total
Year Ended December 31
2025 2024 2025 2024 2025 2024
Projected benefit obligation (“PBO”) $ 1,897   $ 1,900   $ 313   $ 298   $ 2,210   $ 2,198  
Accumulated benefit obligation (“ABO”) 1,897   1,900   268   257   2,165   2,157  
Fair value of plan assets 1,819   1,795   276   265   2,095   2,060  

Approximately one-half of the PBO and fair value of plan assets for the Principal Plans relate to the U.S. qualified and nonqualified pension plans.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Information for Pension Plans with an ABO in Excess of Plan Assets

December 31
2025 2024
ABO $ 1,086   $ 2,042  
Fair value of plan assets 928   1,874  

Information for Pension Plans with a PBO in Excess of Plan Assets

December 31
2025 2024
PBO $ 1,090   $ 2,048  
Fair value of plan assets 928   1,875  

Components of Net Periodic Benefit Cost

Pension Benefits Other Benefits
Year Ended December 31
2025 2024 2023 2025 2024 2023
Service cost $ 10   $ 11   $ 11   $ 4   $ 4   $ 4  
Interest cost 116   114   120   29   28   30  
Expected return on plan assets (a)
( 123 ) ( 123 ) ( 127 ) —   —   —  
Recognized net actuarial (gain) loss 44   40   39   ( 4 ) —   ( 3 )
Settlements and curtailments 4   2   35   —   —   —  
Other —   —   —   —   —   1  
Net periodic benefit cost $ 51   $ 44   $ 78   $ 29   $ 32   $ 32  

(a) The expected return on plan assets is determined by multiplying the fair value of plan assets at the remeasurement date, typically the prior year-end adjusted for estimated current year cash benefit payments and contributions, by the expected long-term rate of return.
The components of net periodic benefit cost other than the service cost component are included in the line item Nonoperating expense in our Consolidated Statements of Income.
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31

Pension Benefits Other Benefits
Projected 2026 2025 2024 2023 2025 2024 2023
Discount rate 5.24 % 5.38 % 4.93 % 5.22 % 5.89 % 5.66 % 5.92 %
Expected long-term return on plan assets 6.01 % 6.12 % 5.60 % 5.80 % — — —
Rate of compensation increase 4.15 % 3.43 % 3.49 % 3.45 % — — —

Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31

Pension Benefits Other Benefits
2025 2024 2025 2024
Discount rate 5.24 % 5.38 % 5.89 % 6.04 %
Rate of compensation increase 4.15 % 3.43 % — —

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Investment Strategies for the Principal Plans
Strategic asset allocation decisions are made considering several risk factors, including plan participants' retirement benefit security, the estimated payments of the associated liabilities, the plan funded status, and Kimberly-Clark's financial condition. The resulting strategic asset allocation is a diversified blend of equity and fixed income investments. Equity investments are typically diversified across geographies and market capitalization. Fixed income investments are diversified across multiple sectors including government issues and corporate debt instruments with a portfolio duration that is consistent with the estimated payment of the associated liability. Actual asset allocation is regularly reviewed and periodically rebalanced to the strategic allocation when considered appropriate. Our 2026 target plan asset allocation for the Principal Plans is approximately 85 % fixed income securities and 15 % equity securities.
The expected long-term rate of return is generally evaluated on an annual basis. In setting this assumption, we consider a number of factors including projected future returns by asset class relative to the current asset allocation. The weighted-average expected long-term rate of return on pension fund assets used to calculate pension expense for the Principal Plans was 6.34 % in 2025, 5.73 % in 2024 and 6.05 % in 2023, and will be 6.24 % in 2026.
Set forth below are the pension plan assets of the Principal Plans measured at fair value, by level in the fair-value hierarchy. Approximately 60 % of the assets are held in pooled funds and are measured using a net asset value (or its equivalent). Accordingly, such assets do not meet the Level 1, Level 2, or Level 3 criteria of the fair value hierarchy.

Fair Value Measurements as of December 31, 2025
Total Plan Assets Assets at Quoted Prices in Active Markets for Identical Assets
(Level 1) Assets at Significant Observable Inputs
(Level 2) Assets at Significant Unobservable Inputs
(Level 3)
Cash and Cash Equivalents
Held directly $ 28   $ 19   $ 9   $ —  

Fixed Income
Held directly
U.S. government and municipals 119   100   19   —  
U.S. corporate debt 288   —   288   —  
U.S. securitized —   —   —   —  
International bonds 41   —   41   —  
Held through mutual and pooled funds measured at net asset value
U.S. government and municipals 272   —   —   —  

Non-U.S. securitized 74   —   —   —  
International bonds 524   —   —   —  
Equity
Held directly
U.S. equity 16   16   —   —  
International equity 12   12   —   —  
Held through mutual and pooled funds measured at net asset value
Non-U.S. equity 3   —   —   —  
Global equity 246   —   —   —  
Insurance Contracts 196   —   —   196  
Other —   —   —   —  
Total Plan Assets $ 1,819   $ 147   $ 357   $ 196  

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Fair Value Measurements as of December 31, 2024
Total Plan Assets Assets at Quoted Prices in Active Markets for Identical Assets
(Level 1) Assets at Significant Observable Inputs
(Level 2) Assets at Significant Unobservable Inputs
(Level 3)
Cash and Cash Equivalents
Held directly $ 25   $ 16   $ 9   $ —  
Fixed Income
Held directly

U.S. government and municipals 112   94   18   —  
U.S. corporate debt 304   —   304   —  
U.S. securitized 1   —   1   —  
International bonds 50   —   50   —  
Held through mutual and pooled funds measured at net asset value
U.S. government and municipals 289   —  —  — 

Non-U.S. securitized 69   —  —  — 
International bonds 509   —  —  — 
Equity
Held directly
U.S. equity 14   14   —   —  
International equity 11   11   —   —  
Held through mutual and pooled funds measured at net asset value
Non-U.S. equity 2   —  —  — 
Global equity 218   —  —  — 
Insurance Contracts 194   —   —   194  
Other ( 3 ) ( 3 ) —   —  
Total Plan Assets $ 1,795   $ 132   $ 382   $ 194  

Futures contracts are used when appropriate to manage duration targets. As of December 31, 2025 and 2024, the U.S. plan held directly Treasury futures contracts with a total notional value of approximately $ 269 and $ 278 , respectively, and an insignificant fair value. As of December 31, 2025 and 2024, the United Kingdom plan held through a pooled fund future contracts with a total notional value of approximately $ 501 and $ 418 , and an insignificant fair value.
During 2025 and 2024, the plan assets did not include a significant amount of Kimberly-Clark common stock.
Inputs and valuation techniques used to measure the fair value of plan assets vary according to the type of security being valued. Substantially all of the equity securities held directly by the plans are actively traded and fair values are determined based on quoted market prices. Fair values of U.S. government securities are determined based on trading activity in the marketplace.
Fair values of U.S. corporate debt, U.S. municipals and international bonds are typically determined by reference to the values of similar securities traded in the marketplace and current interest rate levels. Multiple pricing services are typically employed to assist in determining these valuations.
Fair values of equity securities and fixed income securities held through units of pooled funds are based on net asset value of the units of the pooled fund determined by the fund manager. Pooled funds are similar in nature to

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

retail mutual funds, but are typically more efficient for institutional investors. The fair value of pooled funds is determined by the value of the underlying assets held by the fund and the units outstanding.
Equity securities held directly by the pension trusts and those held through units in pooled funds are monitored as to issuer and industry. Except for U.S. Treasuries, concentrations of fixed income securities are similarly monitored for concentrations by issuer and industry. As of December 31, 2025, there were no significant concentrations of equity or debt securities in any single issuer or industry.
No level 3 transfers (in or out) were made in 2025 or 2024. Fair values of insurance contracts are based on an evaluation of various factors, including purchase price.
We expect to contribute approximately $ 15 to our defined benefit pension plans in 2026. Over the next ten years, we expect that the following gross benefit payments will occur:

Pension Benefits Other Benefits
2026 $ 181   $ 51  
2027 189   52  
2028 184   52  
2029 180   51  
2030 180   48  
2031-2035 872   210  

Defined Contribution Pension Plans
Our 401(k) profit sharing plan and supplemental plan provide for a matching contribution of a U.S. employee's contributions and accruals, subject to predetermined limits, as well as a discretionary profit sharing contribution, in which contributions will be based on our profit performance. We also have defined contribution pension plans for certain employees outside the U.S. Costs charged to expense for our defined contribution pension plans were $ 143 in 2025, $ 158 in 2024, and $ 166 in 2023. Approximately 17 % of these costs were for plans outside the U.S.

Note 10.     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 translation in 2025 was primarily due to the strengthening of various 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.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

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, 2022 $ ( 2,769 ) $ ( 789 ) $ 52   $ ( 163 )
Other comprehensive income (loss) before reclassifications 84   ( 57 ) ( 9 ) ( 153 )
(Income) loss reclassified from AOCI 7   (b) 55   (a) ( 4 ) (a) 164   (c)

Net current period other comprehensive income (loss) 91   ( 2 ) ( 13 ) 11  
Balance as of December 31, 2023 ( 2,678 ) ( 791 ) 39   ( 152 )
Other comprehensive income (loss) before reclassifications ( 434 ) ( 15 ) 10   131  
(Income) loss reclassified from AOCI 44   (b) 31   (a) ( 2 ) (a) 51   (c)
Net current period other comprehensive income (loss) ( 390 ) 16   8   182  

Balance as of December 31, 2024 ( 3,068 ) ( 775 ) 47   30  
Other comprehensive income (loss) before reclassifications 395   ( 18 ) 4   ( 140 )
(Income) loss reclassified from AOCI —   35   (a) ( 4 ) (a) 50   (c)
Net current period other comprehensive income (loss) 395   17   —   ( 90 )
Balance as of December 31, 2025 $ ( 2,673 ) $ ( 758 ) $ 47   $ ( 60 )

(a)    Included in Nonoperating expense as part of the computation of net periodic benefits costs (see Note 9).
(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 year ended December 31, 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 13).
Included in the above defined benefit pension plans and other postretirement benefit plans balances as of December 31, 2025 is $ 710 and $ 1 of unrecognized net actuarial loss and unrecognized net prior service cost, respectively.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

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

Year Ended December 31
2025 2024 2023
Unrealized translation $ 377   $ ( 373 ) $ 84  
Tax effect 18   ( 17 ) 7  
395   ( 390 ) 91  

Defined benefit pension plans
Unrecognized net actuarial loss and transition amount
Funded status recognition 9   ( 26 ) ( 49 )
Amortization 44   40   39  
Settlements and curtailments 4   2   35  
Currency and other ( 36 ) 6   ( 23 )
21   22   2  
Unrecognized prior service cost/credit
Funded status recognition —   —   3  

—   —   3  
Tax effect ( 4 ) ( 6 ) ( 7 )
17   16   ( 2 )
Other postretirement benefit plans
Unrecognized net actuarial loss and transition amount 2   10   ( 18 )
Tax effect ( 2 ) ( 2 ) 5  
—   8   ( 13 )
Cash flow hedges
Recognition of effective portion of hedges ( 181 ) 198   ( 178 )
Amortization 59   69   208  
Currency and other ( 4 ) ( 15 ) ( 14 )
Tax effect 36   ( 70 ) ( 5 )
( 90 ) 182   11  

Change in AOCI $ 322   $ ( 184 ) $ 87  

Note 11.     Leases and Commitments
We have entered into leases for certain facilities, vehicles, material handling and other equipment. Our leases have remaining contractual terms up to 93 years, some of which include options to extend the leases for up to 99 years, and some of which include options to terminate the leases within 1 year. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Our lease costs are primarily related to facility leases for inventory warehousing and administration offices.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Lease Expense

Year Ended December 31
2025 2024 2023 Income Statement Classification
Operating lease expense $ 141   $ 136   $ 131   Cost of products sold, Marketing, research and general expenses

Finance lease expense:
Amortization of lease assets 15   14   12   Cost of products sold
Interest on lease liabilities 3   3   2   Interest expense
Total finance lease expense 18   17   14  

Variable lease expense (a)
136   132   214   Cost of products sold, Marketing, research and general expenses
Total lease expense $ 295   $ 285   $ 359  

(a)    Includes short-term leases, which are immaterial.
Lease Assets and Liabilities

December 31
2025 2024 Balance Sheet Classification
Assets
Operating lease $ 369   $ 363   Other Assets
Finance lease 49   46   Property, Plant and Equipment, Net
Total lease assets $ 418   $ 409  
Liabilities
Current:
Operating lease $ 128   $ 116   Accrued expenses and other current liabilities
Finance lease 13   12   Debt payable within one year
Noncurrent:
Operating lease 258   265   Other Liabilities
Finance lease 30   32   Long-Term Debt
Total lease liabilities $ 429   $ 425  

As of December 31, 2025 and 2024, accumulated amortization of finance lease assets was $ 36 and $ 28 , respectively.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Maturity of Lease Liabilities

December 31, 2025
Operating Leases Finance Leases Total
2026 $ 146   $ 15   $ 161  
2027 116   13   129  
2028 69   10   79  
2029 42   5   47  
2030 27   3   30  
Thereafter 38   5   43  
Total lease payments 438   51   489  
Less imputed interest 52   8   60  
Present value of lease liabilities $ 386   $ 43   $ 429  

Supplemental Information Related to Leases
The Consolidated Statements of Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. As a result, unless specifically stated, supplemental cash flow information shown below reflects Kimberly-Clark's consolidated results for all periods presented.
Year Ended December 31
2025 2024 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases $ 160   $ 156   $ 147  
Finance leases 25   19   17  
Lease assets obtained in exchange for new lease obligations:
Operating leases 40   74   66  
Finance leases 14   23   24  
Other non-cash modifications to lease assets:
Operating leases 89   39   39  

Lease terms and discount rates were as follows:

December 31, 2025 December 31, 2024
Operating Leases Finance Leases Operating Leases Finance Leases
Weighted-average remaining lease term (years) 4.1 4.6 4.2 4.9
Weighted-average discount rate 5.8 % 6.3 % 4.3 % 6.3 %

As of December 31, 2025, we have additional operating leases that are expected to commence in 2026 and are therefore not included in the measurement of the right-of-use assets and liabilities disclosed in the table above. These leases have cumulative minimum lease commitments of approximately $ 186 , with terms ranging from 7 to 10.5 years.
We have entered into long-term contracts for the purchase of raw materials, primarily superabsorbent materials, pulp and certain utilities. Commitments under these contracts based on current prices are $ 956 in 2026, $ 415 in 2027, $ 411 in 2028, $ 346 in 2029, $ 348 in 2030, and $ 1,387 beyond the year 2030.
Although we are primarily liable for payments on the above-mentioned leases and purchase commitments, our exposure to losses, if any, under these arrangements is not material.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Note 12.     Legal Matters
We routinely are involved in legal proceedings, claims, disputes, tax matters, regulatory matters and governmental inspections or investigations arising in the ordinary course of or incidental to our business, including those noted below in this section. We record accruals in the Consolidated Financial Statements for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. For the matters we disclose that do not include an estimate of the amount of loss or range of losses, such an estimate is not possible or is immaterial, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies, unless disclosed below. At present we believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations or cash flows. However, legal proceedings and government investigations are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial monetary damages. In addition, in matters for which conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices or requiring other remedies. An unfavorable outcome might result in a material adverse impact on our business, results of operations or financial position.
As previously disclosed, we have been party to certain legal proceedings relating to our former health care business, Avanos Medical, Inc. (previously Halyard Health, Inc.), including a qui tam matter and certain subpoena and document requests from the federal government. The subpoena and document requests included 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 provided for a payment by us in an amount that did not materially affect our financial position, results of operations or cash flows. During the third quarter of 2025, we entered into a Deferred Prosecution Agreement (the “DPA”) with the DOJ that resolved the DOJ’s investigation. Pursuant to the DPA, the Company is responsible for making certain monetary payments that are not expected to materially affect our financial position, results of operations or cash flows.
We are subject to federal, state and local environmental protection laws and regulations with respect to our business operations and are operating in compliance with, or taking action aimed at ensuring compliance with, these laws and regulations. We have been named a potentially responsible party under the provisions of the U.S. federal Comprehensive Environmental Response, Compensation and Liability Act, or analogous state statutes, at a number of sites where hazardous substances are present. None of our compliance obligations with environmental protection laws and regulations, individually or in the aggregate, is expected to have a material adverse effect on our business, liquidity, financial condition or results of operations.

Note 13.     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 December 31, 2025 and 2024, derivative as sets were $ 81 and $ 189 , respectively, and derivative liabilities were $ 191 a nd $ 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

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

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 inventories 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 He dges
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 December 31, 2025, the aggregate notional values and carrying values of debt subject to outstanding interest rate contracts designated as fair value hedges were $ 425 and $ 405 , respectively. For the years ended December 31, 2025, 2024 and 2023, 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 December 31, 2025, the aggregate notional value of outstanding foreign exchange and commodity derivative contracts designated as cash flow hedges was $ 2.3 billion. For the year ended December 31, 2025, we discontinued cash flow hedge accounting for certain foreign exchange and commodity instruments with a notional value of $ 690 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 years ended December 31, 2024 and 2023, no material gains or losses were reclassified from AOCI into earnings as a result of the discontinuance of cash flow hedge accounting. As of December 31, 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 $ 21 . The maximum maturity of cash flow hedges in place as of December 31, 2025 is November 2028.
Net Investment Hedges
For derivative instruments that are designated and qualify as net investment hedges, 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. As of December 31, 2025, the aggregate notional value of these instruments was $ 1.1  billion. 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. Interest accruals on cross-currency swap contracts are recognized 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. For the years ended December 31, 2025, 2024 and 2023, unrealized losses of $ 103 , unrealized gains of $ 64 , and

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

unrealized losses of $ 43 , respectively, related to net investment hedge fair value changes were recorded in AOCI and no material amounts were reclassified from AOCI to Interest expense.
For the years ended December 31, 2025, 2024 and 2023 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. For the years ended December 31, 2025, 2024 and 2023, we recognized gains of $ 46 , losses of $ 49 , and gains of $ 2 , respectively. The effect on earnings from the use of these undesignated derivatives is substantially neutralized by the transactional gains and losses recorded on the underlying assets and liabilities. As of December 31, 2025, the notional amount of these undesignated derivative instruments was approximately $ 4.6 billion.

Note 14.     Income Taxes
The Provision for income taxes consists of the following:

Year Ended December 31
2025 2024 2023
Current income taxes
  United States $ 117   $ 236   $ 364  
  State 42   56   53  
  Other countries 226   195   252  
    Total 385   487   669  
Deferred income taxes
  United States 241   ( 14 ) ( 120 )
  State 1   ( 18 ) ( 28 )
  Other countries ( 28 ) ( 13 ) ( 178 )
    Total 214   ( 45 ) ( 326 )
Total Provision for income taxes $ 599   $ 442   $ 343  

The components of Income from Continuing Operations Before Income Taxes and Equity Interests are as follows:

Year Ended December 31
2025 2024 2023
United States $ 1,743   $ 2,194   $ 1,954  
Other countries 309   224   ( 348 )
Total Income from Continuing Operations Before Income Taxes and Equity Interests $ 2,052   $ 2,418   $ 1,606  

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Deferred income tax assets and liabilities are comprised of the following:

December 31
2025 2024
Deferred tax assets
Pension and other postretirement benefits $ 162   $ 169  
Tax credits and loss carryforwards 712   623  
Capitalized research costs 204   272  
Lease liabilities 114   112  

Other 423   364  
1,615   1,540  
Valuation allowances ( 451 ) ( 295 )
Total deferred tax assets 1,164   1,245  

Deferred tax liabilities
Property, plant and equipment 851   854  
Investments in subsidiaries 133   113  
Goodwill 69   64  

Lease assets 109   105  
Other 186   203  
Total deferred tax liabilities 1,348   1,339  

Net deferred tax assets (liabilities) $ ( 184 ) $ ( 94 )

Valuation allowances as of December 31, 2025 primarily relate to tax credits, capital loss carryforwards, and income tax loss carryforwards of $ 1.1 billion. If these items are not utilized against taxable income, $ 484  of the income tax loss carryforwards will expire from 2026 through 2045. The remaining $ 589 has no expiration date.
Realization of income tax loss carryforwards is dependent on generating sufficient taxable income prior to expiration of these carryforwards. Although realization is not assured, we believe it is more likely than not that all of the deferred tax assets, net of applicable valuation allowances, will be realized. The amount of the deferred tax assets considered realizable could be reduced or increased due to changes in the tax environment or if estimates of future taxable income change during the carryforward period.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Presented below is a reconciliation of the Provision for income taxes computed at the U.S. federal statutory tax rate to the actual effective tax rate:

Year Ended December 31
2025 2024 2023
Amount Percent Amount Percent Amount Percent

U.S. statutory rate applied to income from continuing operations before income taxes and equity interests $ 431   21.0   % $ 508   21.0   % $ 337   21.0   %
State income taxes, net of federal tax benefit (a)
34   1.7   31   1.3   25   1.6  
Effect of changes in tax laws or rates enacted in the current period 119   5.8   —   —   ( 21 ) ( 1.3 )
Effect of Cross-Border Tax Laws
Foreign-derived intangible income ( 10 ) ( 0.5 ) ( 19 ) ( 0.8 ) ( 20 ) ( 1.2 )
Other ( 24 ) ( 1.2 ) 15   0.6   ( 9 ) ( 0.6 )
Tax Credits
Research and development credits ( 33 ) ( 1.6 ) ( 41 ) ( 1.7 ) ( 28 ) ( 1.7 )
Other ( 8 ) ( 0.4 ) ( 6 ) ( 0.2 ) —   —  
Changes in valuation allowances 52   2.5   ( 7 ) ( 0.3 ) 38   2.4  
Nontaxable or Nondeductible Items 12   0.6   18   0.7   5   0.3  
Other Adjustments
Nigeria worthless stock deduction —   —   ( 40 ) ( 1.7 ) —   —  
Tax effects of the impairment of intangible assets —   —   ( 9 ) ( 0.4 ) ( 43 ) ( 2.7 )
Other ( 15 ) ( 0.7 ) ( 33 ) ( 1.4 ) ( 5 ) ( 0.3 )
Foreign tax effects 43   2.1   78   3.2   70   4.4  
Changes in unrecognized tax benefits ( 2 ) ( 0.1 ) ( 53 ) ( 2.2 ) ( 6 ) ( 0.4 )
Effective tax rate $ 599   29.2 % $ 442   18.3 % $ 343   21.4 %

Note - table may not foot due to rounding.
(a)     State taxes in California and Illinois made up greater than 50% of the 2025 tax effect in this category. State taxes in Alabama, California, Illinois, and Wisconsin made up greater than 50% of the 2024 tax effect in this category. State taxes in California, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, New York, Oregon, South Carolina, Texas, and Wisconsin made up greater than 50% of the 2023 tax effect in this category.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. During the year ended December 31, 2025, we recorded incremental tax charges of approximately $ 145 primarily relating to a valuation allowance on current and prior year U.S. foreign tax credits. Of these total charges, approximately $ 96 was associated with the realizability of our prior year U.S. foreign tax credits.
As of December 31, 2025, deferred taxes have been recorded on $ 1.2 billion of earnings of foreign consolidated subsidiaries expected to be repatriated. We do not intend to distribute any remaining foreign earnings and therefore have not recorded deferred taxes for foreign and U.S. income taxes on such earnings. Any additional taxes due with respect to such previously-taxed foreign earnings, if repatriated, would generally be limited to foreign and U.S. state income taxes.
We consider any excess of the amount for financial reporting over the tax basis in our foreign subsidiaries to be indefinitely reinvested. The determination of deferred tax liabilities on the amount of financial reporting over tax basis or the remaining foreign earnings is not practicable.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Presented below is a reconciliation of the beginning and ending amounts of unrecognized income tax benefits:

2025 2024 2023
Balance as of January 1 $ 528   $ 579   $ 479  
Gross increases for tax positions of prior years 42   61   38  
Gross decreases for tax positions of prior years ( 20 ) ( 113 ) ( 13 )
Gross increases for tax positions of the current year 35   50   109  
Settlements ( 38 ) ( 32 ) ( 26 )
Other ( 2 ) ( 17 ) ( 8 )
Balance as of December 31 $ 545   $ 528   $ 579  

Of the amounts recorded as unrecognized income tax benefits as of December 31, 2025, $ 470 would reduce our effective tax rate if recognized.
We recognize accrued interest and penalties related to unrecognized income tax benefits in Provision for income taxes. The net impact of interest and penalties for the years ended December 31, 2025, 2024, and 2023 was not significant. Total accrued penalties and net accrued interest was $ 59 and $ 54 as of December 31, 2025 and 2024, respectively.
As of December 31, 2025, the following tax years remain subject to examination for the major jurisdictions where we conduct business:

Jurisdiction Years
United States 2021 to 2025

Brazil 2020 to 2025
China 2015 to 2025
South Korea 2021 to 2025

Our originally filed U.S. federal income tax returns have been audited through 2020; we filed an amended U.S. federal income tax return for 2016, which remains open to examination.
State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return. The state effect of any changes to filed federal positions remains subject to examination by various states for a period of up to two years after formal notification to the states. We have various state income tax return positions in the process of examination, administrative appeals or litigation.
The Brazilian tax authority, Secretaria da Receita Federal do Brasil ("RFB"), concluded an audit for the taxable periods from 2008-2013. This audit included a review of our determinations of amortization of certain goodwill arising from prior acquisitions in Brazil, and the RFB has proposed adjustments that effectively eliminate the goodwill amortization benefits related to these transactions. Administrative appeals have been exhausted with a partial favorable decision for our position, and the remaining dispute is in the judicial phase. Based upon the matters that remain in dispute, the amount of the proposed tax and penalty adjustments is approximately $ 45 as of December 31, 2025 (translated at the December 31, 2025 currency exchange rate). The amount ultimately in dispute will be significantly greater because of interest. The first instance judge has issued a decision in our favor, finding that our amortization of the goodwill at issue was valid; however, an appeal is pending and final resolution of this matter is expected to take a number of years.
As part of the tax audit of our U.S. federal income tax returns for the taxable years ended December 31, 2017 and 2018, the U.S. Internal Revenue Service issued an adjustment that would increase the amount of the one-time transition tax on certain undistributed earnings of foreign subsidiaries owed by us. We believe we have adequate reserves and meritorious defenses and intend to vigorously defend against the assessment; however, it could take a number of years to reach resolution of this matter.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

As part of the tax audit of our U.S. federal income tax returns for the taxable years ended December 31, 2019 and 2020, the U.S. Internal Revenue Service proposed an adjustment that would increase the amount of U.S. income tax on distributions made by minority owned foreign affiliates. We believe we have meritorious defenses and intend to vigorously defend against the proposed adjustment and have therefore not recorded a reserve; however, it could take a number of years to reach resolution of this matter.
Income taxes paid, net of refunds, are as follows:

Year Ended December 31
2025 2024 2023
U.S. Federal $ 175   $ 260   $ 346  
U.S. State 25   48   15  
Foreign 297   279   287  
Total $ 497   $ 587   $ 648  

Income taxes paid, net of refunds exceeded 5 percent of total income taxes paid, net of refunds, in the following jurisdictions:

Year Ended December 31
2025 2024 2023
Foreign
Australia $ 39   $ 31   $ *
China 52   42   51  
Korea 44   41   46  

* Jurisdiction below the threshold for the period presented.

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Note 15.     Earnings Per Share
Basic and diluted earnings per share ("EPS") were calculated as follows:

Year Ended December 31
(In millions, except per share amounts) 2025 2024 2023
Income from Continuing Operations $ 1,649   $ 2,192   $ 1,459  
Less: Net income attributable to noncontrolling interests ( 28 ) ( 33 ) —  
Income from Continuing Operations Attributable to Kimberly-Clark Corporation 1,621   2,159   1,459  
Income from Discontinued Operations, Net of Income Taxes 400   386   305  
Net Income Attributable to Kimberly-Clark Corporation $ 2,021   $ 2,545   $ 1,764  

Weighted-Average Common Shares
Basic 331.9   335.6   337.8  
Dilutive effect of stock options and RSU awards 1.3   1.4   1.0  
Diluted 333.2   337.0   338.8  

Basic:
Continuing operations $ 4.88   $ 6.43   $ 4.32  
Discontinued operations 1.21   1.15   0.90  
Basic Earnings per Share $ 6.09   $ 7.58   $ 5.22  

Diluted:
Continuing operations $ 4.86   $ 6.41   $ 4.31  
Discontinued operations 1.21   1.14   0.90  
Diluted Earnings per Share $ 6.07   $ 7.55   $ 5.21  

We use the treasury stock method to calculate the dilutive effect of our outstanding 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 1.9 million in 2025, 1.2 million in 2024 and 2.7 million in 2023. The number of common shares outstanding as of December 31, 2025, 2024 and 2023 was 331.9 million, 331.8 million and 337.0 million , respectively.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Note 16.     Segment Reporting
The Company's continuing operations are organized by operating segments aggregated 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 the following changes:
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.

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The tables below present net sales and the significant expense categories that are included in Segment Operating Profit and regularly provided to our CODM:

Year Ended December 31, 2025
NA IPC Total
Segment Net Sales $ 10,753   $ 5,694   $ 16,447  
Corporate & Other —  
Total Net Sales $ 16,447  

Cost of Products Sold $ 6,452   $ 3,781   $ 10,233  
Advertising and Promotion Expense 719   391   1,110  
Research, Selling and General Expense 1,029   718   1,747  
Other (Income) and Expense, net (a)
—   8   8  
Segment Operating Profit $ 2,553   $ 796   $ 3,349  
Corporate & Other ( 998 )
Total Operating Profit $ 2,351  

Year Ended December 31, 2024
NA IPC Total
Segment Net Sales $ 11,017   $ 5,743   $ 16,760  
Corporate & Other 45  
Total Net Sales $ 16,805  

Cost of Products Sold $ 6,518   $ 3,755   $ 10,273  
Advertising and Promotion Expense 806   416   1,222  
Research, Selling and General Expense 1,151   733   1,884  
Other (Income) and Expense, net (a)
—   13   13  
Segment Operating Profit $ 2,542   $ 826   $ 3,368  
Corporate & Other ( 668 )
Total Operating Profit $ 2,700  

Year Ended December 31, 2023
NA IPC Total
Segment Net Sales $ 10,996   $ 5,940   $ 16,936  
Corporate & Other 210  
Total Net Sales $ 17,146  

Cost of Products Sold $ 6,608   $ 4,012   $ 10,620  
Advertising and Promotion Expense 739   400   1,139  
Research, Selling and General Expense 1,135   759   1,894  
Other (Income) and Expense, net (a)
—   96   96  
Segment Operating Profit $ 2,514   $ 673   $ 3,187  
Corporate & Other ( 1,259 )
Total Operating Profit $ 1,928  

(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.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Depreciation and amortization expense by segment:

Year Ended December 31
2025 2024 2023
NA $ 481   $ 440   $ 430  
IPC 247   200   205  
Total Segment Depreciation and Amortization 728   640   635  
Corporate & Other 9   8   3  
Total (a)
$ 737   $ 648   $ 638  

(a)    Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations.
Capital spending by segment:

Year Ended December 31
2025 2024 2023
NA $ 714   $ 443   $ 455  
IPC 157   157   196  
Total Segment Capital Spending 871   600   651  
Corporate & Other 149   5   15  
Total (a)
$ 1,020   $ 605   $ 666  

(a)    Excludes discontinued operations. See Note 3 for capital spending of discontinued operations.
Sales of Principal Products:

Year Ended December 31
2025 2024 2023
Baby and Child Care $ 6,773   $ 7,056   $ 7,054  
Family Care 4,056   3,928   4,024  
Professional 1,841   2,152   2,385  
Adult Care 1,947   1,864   1,809  
Feminine Care 1,706   1,721   1,787  
All Other 124   84   87  
Total $ 16,447   $ 16,805   $ 17,146  

Net sales in the U.S. to third parties totaled $ 10.1 billion in 2025 and $ 10.4 billion in 2024 and 2023. No other individual country's net sales exceed 10% of net sales from continuing operations.
Net sales to Walmart Inc. as a percent of our net sales from continuing operations were approximately 16 % in 2025 and 2024 and 15 % in 2023. Net sales to Walmart Inc. were primarily in the NA segment.

Note 17.     Supplemental Data
Supplemental Income Statement Data

Year Ended December 31
2025 2024 2023
Advertising expense $ 1,020   $ 1,122   $ 1,026  
Research expense 326   328   303  

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Equity Companies' Data

Net
Sales Gross
Profit Operating
Profit Net
Income Corporation’s
Share of Net
Income
2025 $ 3,017   $ 932   $ 644   $ 410   $ 196  
2024 3,180   1,063   727   451   216  
2023 3,135   1,003   683   410   196  
Current
Assets Non-Current
Assets Current
Liabilities Non-Current
Liabilities Stockholders’
Equity
2025 $ 1,390   $ 1,315   $ 923   $ 1,287   $ 495  
2024 1,536   1,135   1,050   1,177   444  
2023 1,974   1,362   1,175   1,687   474  

Equity companies are accounted for under the equity method of accounting and are principally engaged in the manufacture and sale of products similar to those produced by the Company. As of December 31, 2025, our ownership interest in Kimberly-Clark de Mexico, S.A.B. de C.V. and subsidiaries ("KCM") was 47.9 %. KCM is partially owned by the public, and its stock is publicly traded in Mexico. As of December 31, 2025, our investment in this equity company was $ 266 , and the estimated fair value of the investment was $ 2.9  billion based on the market price of publicly traded shares. Our other equity ownership interests are not significant to our Consolidated Financial Statements.
As of December 31, 2025, undistributed net income of equity companies included in consolidated retained earnings was $ 1.2 billion.
Supplemental Balance Sheet Data

December 31
Summary of Accounts Receivable, Net 2025 2024
From customers $ 1,783   $ 1,650  
Other 154   126  
Less allowance for doubtful accounts and sales discounts ( 45 ) ( 48 )
Total $ 1,892   $ 1,728  

December 31
2025 2024
Summary of Inventories by Major Class LIFO Non-LIFO Total LIFO Non-LIFO Total
Raw materials $ 114   $ 197   $ 311   $ 122   $ 201   $ 323  
Work in process 111   38   149   116   32   148  
Finished goods 484   468   952   510   428   938  
Supplies and other —   254   254   —   243   243  
709   957   1,666   748   904   1,652  
Excess of FIFO or weighted-average cost over LIFO cost ( 191 ) —   ( 191 ) ( 200 ) —   ( 200 )
Total $ 518   $ 957   $ 1,475   $ 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.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

December 31
Summary of Other Current Assets 2025 2024
Prepaid expenses $ 304   $ 292  
Time deposits 86   171  
Derivative assets 52   114  
Other 93   117  
Total $ 535   $ 694  

December 31
Summary of Property, Plant and Equipment, Net 2025 2024
Land $ 134   $ 110  
Buildings 2,354   2,314  
Machinery and equipment 12,820   12,498  
Construction in progress 1,201   780  
16,509   15,702  
Less accumulated depreciation ( 9,734 ) ( 9,418 )
Total $ 6,775   $ 6,284  

Property, plant and equipment, net in the U.S. as of December 31, 2025 and 2024 was $ 4.9 billion and $ 4.4 billion, respectively. Depreciation expense was $ 735 , $ 641 and $ 627 for the years ended December 31, 2025, 2024 and 2023, respectively.

December 31
Summary of Accrued Expenses and Other Current Liabilities 2025 2024
Accrued advertising and promotion $ 459   $ 486  
Accrued salaries and wages 284   394  
Accrued rebates 195   204  
Accrued taxes - income and other 249   253  
Operating leases 128   116  
2024 Transformation Initiative liabilities 62   130  
Accrued interest 91   99  
Derivative liabilities 96   82  
Other 324   327  
Total $ 1,888   $ 2,091  

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Supplemental Cash Flow Statement Data
The Consolidated Statements of Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. As a result, supplemental cash flow data shown below reflects Kimberly Clark's consolidated results for all periods presented.

Summary of Cash Flow Effects of Operating Working Capital Year Ended December 31
2025 2024 2023
Accounts receivable $ ( 58 ) $ 48   $ 127  
Inventories 70   10   290  
Trade accounts payable ( 147 ) 179   ( 109 )
Accrued expenses ( 325 ) 106   125  
Accrued income taxes ( 143 ) ( 110 ) 122  
Derivatives ( 41 ) 79   ( 15 )
Currency and other 141   ( 134 ) 42  
Total $ ( 503 ) $ 178   $ 582  

Year Ended December 31
Other Cash Flow Data 2025 2024 2023
Interest paid $ 248   $ 268   $ 277  

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. The outstanding amount related to the suppliers participating in this program was $ 1.1  billion and $ 1.0 billion as of December 31, 2025 and 2024, of which $ 184 and $ 185 , respectively, are reported as discontinued operations. Amounts are recorded within Trade accounts payable and Current liabilities of discontinued operations.
The rollforward of the Company's outstanding obligations confirmed as valid under its supplier finance program are as follows:

Year Ended December 31
2025 2024
Confirmed obligations outstanding at the beginning of the year $ 1,004   $ 960  
Invoices confirmed during the year 3,239   3,033  
Confirmed invoices paid during the year ( 3,184 ) ( 2,989 )
Currency and other ( 2 ) —  
Confirmed obligations outstanding at the end of the year $ 1,057   $ 1,004  

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Note 18.     Quarterly Financial Data (Unaudited)
As discussed in Note 1, as a result of the IFP Transaction, the results of the IFP Business are reported as discontinued operations. The following tables provide unaudited summarized financial information based on our Consolidated Financial Statements after giving effect to the reporting of the IFP Business as discontinued operations for each quarter of fiscal year 2025 and 2024.

2025
(In millions, except per share amounts) First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
Net Sales $ 4,054   $ 4,163   $ 4,150   $ 4,080  
Gross Profit 1,509   1,456   1,493   1,465  
Income from Continuing Operations 470   444   344   391  
Income from Discontinued Operations, Net of Income Taxes 103   68   110   119  
Net Income Attributable to Kimberly-Clark Corporation 567   509   446   499  

Earnings Per Share - Basic:
Continuing operations $ 1.40   $ 1.33   $ 1.01   $ 1.14  
Discontinued operations 0.31   0.20   0.33   0.36  
Basic Earnings per Share $ 1.71   $ 1.53   $ 1.34   $ 1.50  

Earnings Per Share - Diluted:
Continuing operations $ 1.39   $ 1.33   $ 1.01   $ 1.14  
Discontinued operations 0.31   0.20   0.33   0.36  
Diluted Earnings per Share $ 1.70   $ 1.53   $ 1.34   $ 1.50  

2024
(In millions, except per share amounts) First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
Net Sales $ 4,326   $ 4,231   $ 4,144   $ 4,104  
Gross Profit 1,686   1,594   1,564   1,445  
Income from Continuing Operations 556   464   823   349  
Income from Discontinued Operations, Net of Income Taxes 102   89   92   103  
Net Income Attributable to Kimberly-Clark Corporation 647   544   907   447  

Earnings Per Share - Basic:
Continuing operations $ 1.62   $ 1.35   $ 2.43   $ 1.03  
Discontinued operations 0.30   0.26   0.27   0.31  
Basic Earnings per Share $ 1.92   $ 1.61   $ 2.70   $ 1.34  

Earnings Per Share - Diluted:
Continuing operations $ 1.61   $ 1.35   $ 2.42   $ 1.03  
Discontinued operations 0.30   0.26   0.27   0.31  
Diluted Earnings per Share $ 1.91   $ 1.61   $ 2.69   $ 1.34  

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholders and the Board of Directors of Kimberly-Clark Corporation:
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Kimberly-Clark Corporation and subsidiaries (the "Corporation") as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the financial statement schedules listed in the Table of Contents at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Corporation's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 12, 2026, expressed an unqualified opinion on the Corporation's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Corporation's management. Our responsibility is to express an opinion on the Corporation's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Sales Incentives and Trade Promotion Allowances — Refer to Note 1 to the Financial Statements
Critical Audit Matter Description
The Corporation utilizes various trade promotion programs globally. The cost of promotion activities is classified as a reduction in sales revenue and can result in a period of time between the date the customer earns a promotion and the date the customer claims the promotion. The Corporation records an estimate for trade promotions using customer sales associated with valid promotion events, actual promotion claims, and forecasted information about amounts earned by the customer but not yet claimed.
We identified the reductions to revenue associated with trade promotions and the related accrual as a critical audit matter because of the complexity of the Corporation’s processes related to trade promotions, volume of trade

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

promotion programs, and the subjectivity of estimating future customer claims. This required an extensive audit effort due to the complexity and subjectivity of estimating future customer claims.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the reduction in revenue associated with trade promotions and the related accrual included the following, among others:
• With the assistance of our Information Technology (IT) specialists, we:
– Identified the significant systems used to process trade promotion transactions and tested the general IT controls over each of these systems, including testing of user access controls, change management controls, and IT operations controls.
– Tested the effectiveness of automated controls over revenue streams, including those over the evaluation of the accuracy and completeness of trade promotions.
• We tested the effectiveness of internal controls over the trade promotions and the related accrual, including those over the quantity of customer sales associated with valid promotion events and the estimated future promotion claims associated with the trade accrual.
• We evaluated trade promotion transactions using either substantive analytical procedures or by evaluating individual transactions. When analytical procedures were performed, we developed an expectation for reduction in revenue associated with trade promotions based on the relationship with gross sales adjusted for changes in data, if warranted. These adjustments to our expectation may consist of changes in product mix, sales margin, or inflation, and are compared to the recorded amount. When individual promotion transactions were evaluated, we obtained evidence of the promotion agreement with the customer and the amounts of the promotions earned.
• We evaluated management’s ability to estimate future promotion claims by comparing actual promotion claims to management’s historical estimates.
• We evaluated the reasonableness of management’s estimate of future promotion claims by testing the underlying data related to (1) customer sales associated with valid promotion events, (2) actual promotion claims, and (3) forecasted information.

/s/ DELOITTE & TOUCHE LLP  
Deloitte & Touche LLP
Dallas, Texas
February 12, 2026

We have served as the Corporation’s auditor since 1928.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.

ITEM 9A.    CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
As of December 31, 2025, an evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a - 15(e) and 15d - 15(e) of the Securities Exchange Act of 1934 (Exchange Act)). Based on that evaluation, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective as of December 31, 2025.
Management's Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining an adequate system of internal control over financial reporting, including safeguarding of assets against unauthorized acquisition, use or disposition. This system is designed to provide reasonable assurance to management and our Board of Directors regarding preparation of reliable published financial statements and safeguarding of our assets. This system is supported with written policies and procedures, contains self-monitoring mechanisms and is audited by the internal audit function. Appropriate actions are taken by management to correct deficiencies as they are identified. All internal control systems have inherent limitations, including the possibility of circumvention and overriding of controls, and, therefore, can provide only reasonable assurance as to the reliability of financial statement preparation and such asset safeguarding.
We have assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, we used the criteria described in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management believes that, as of December 31, 2025, our internal control over financial reporting is effective.
Deloitte & Touche LLP has audited the effectiveness of our internal control over financial reporting as of December 31, 2025, and has expressed an unqualified opinion in their report, which appears in this report.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting identified in connection with the evaluation described above in "Internal Control Over Financial Reporting" that occurred during our fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholders and the Board of Directors of Kimberly-Clark Corporation:
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Kimberly-Clark Corporation and subsidiaries (the “Corporation”) as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2025, of the

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Corporation and our report dated February 12, 2026, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Corporation’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Corporation’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ D ELOITTE  & T OUCHE LLP  

Deloitte & Touche LLP
Dallas, Texas
February 12, 2026

ITEM 9B.    OTHER INFORMATION
(b) Our directors and officers may from time to time enter into plans or other arrangements for the purchase or sale of our shares that are intended to satisfy the affirmative defense conditions of Rule 10b5–1(c) or may represent a non-Rule 10b5-1 trading arrangement under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). During the quarter ended December 31, 2025, no such plans or other arrangements were adopted or terminated.

ITEM 9C.    DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

PART III

ITEM 10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The following sections of our Proxy Statement for the 2026 Annual Meeting of Stockholders (the "2026 Proxy Statement") are incorporated in this Item 10 by reference:
• "The Nominees" under "Proposal 1. Election of Directors," which identifies our directors and nominees for our Board of Directors.
• "Corporate Governance - Other Corporate Governance Policies and Practices - Code of Conduct," which describes our Code of Conduct.
• "Corporate Governance - Stockholder Rights," "Proposal 1. Election of Directors," "General Information about our Annual Meeting - Stockholder Director Nominees for Inclusion in Next Year's Proxy Statement," and "General Information about our Annual Meeting - Stockholder Director Nominees Not Included in Next Year's Proxy Statement," which describe the procedures by which stockholders may nominate candidates for election to our Board of Directors.
• "Corporate Governance - Board Committees - Audit Committee," which identifies members of the Audit Committee of our Board of Directors and audit committee financial experts.
• “Compensation Discussion and Analysis - Additional Information about Our Compensation Practices - Insider Trading Policy; Anti-Hedging and Pledging Policy,” which describes our Insider Trading Policy .
Information regarding our executive officers is reported under the caption "Information About Our Executive Officers" in Part I of this Report.

ITEM 11.    EXECUTIVE COMPENSATION
The information in the sections of our 2026 Proxy Statement captioned "Compensation Discussion and Analysis," "Compensation Tables," "Director Compensation," "Corporate Governance - Compensation Committee Interlocks and Insider Participation," "Other Information - CEO Pay Ratio Disclosure" and "Other Information - Pay Versus Performance" is incorporated in this Item 11 by reference.

ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The information in the sections of our 2026 Proxy Statement captioned "Compensation Tables - Equity Compensation Plan Information" and "Other Information - Security Ownership Information" is incorporated in this Item 12 by reference.

ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information in the sections of our 2026 Proxy Statement captioned "Other Information - Transactions with Related Persons" and "Corporate Governance - Director Independence" is incorporated in this Item 13 by reference.

ITEM 14.    PRINCIPAL ACCOUNTANT FEES AND SERVICES (Deloitte & Touche LLP, PCAOB ID 34 )
The information in the sections of our 2026 Proxy Statement captioned "Principal Accounting Firm Fees" and "Audit Committee Approval of Audit and Non-Audit Services" under "Proposal 2. Ratification of Auditor" is incorporated in this Item 14 by reference.

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PART IV

ITEM 15.    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Documents filed as part of this report.
1. Financial statements.
The financial statements are set forth under Item 8 of this report on Form 10-K.
2. Financial statement schedules.
The following information is filed as part of this Form 10-K and should be read in conjunction with the financial statements contained in Item 8:
• Report of Independent Registered Public Accounting Firm
Schedule for Kimberly-Clark Corporation and Subsidiaries:
• Schedule II Valuation and Qualifying Accounts
All other schedules have been omitted because they were not applicable or because the required information has been included in the financial statements or notes thereto.
3. Exhibits

Exhibit No. (2)a. Agreement and Plan of Merger, dated as of November 2, 2025, by and among Kenvue Inc., Kimberly-Clark Corporation, Vesta Sub I, Inc. and Vesta Sub II, LLC, incorporated by reference to Exhibit No. 2.1 of the Corporation's Current Report on Form 8-K filed on November 3, 2025.**

Exhibit No. (3)a. Amended and Restated Certificate of Incorporation of Kimberly-Clark Corporation, incorporated by reference to Exhibit No. (3)a of the Corporation's Current Report on Form 8-K filed on May 2, 2024.

Exhibit No. (3)b. By-Laws, as amended May 19 , 202 5 , incorporated by reference to Exhibit No. (3)b of the Corporation's Current Report on Form 8-K filed on May 1 9, 202 5 .

Exhibit No. (4)a. First Amended and Restated Indenture dated as of March 1, 1988 between the Corporation and The Bank of New York Mellon Trust Company, N.A. (as successor in interest to The First National Bank of Chicago) as Trustee (originally executed with Bank of America National Trust and Savings Association) (incorporated by reference to Exhibit No. 4.1 to the Registration Statement on Form S-3 filed on February 2, 1998 (Registration No. 333-45399)).

Exhibit No. (4)b. First Supplemental Indenture, dated as of November 6, 1992, to the Indenture (incorporated by reference to Exhibit No. 4.3 to the Registration Statement on Form S-3 filed on June 17, 1994 (Registration No. 33-54177)).

Exhibit No. (4)c. Second Supplemental Indenture, dated as of May 25, 1994, to the Indenture (incorporated by reference to Exhibit No. 4.4 to the Registration Statement on Form S-3 filed on June 17, 1994 (Registration No. 33-54177)).

Exhibit No. (4)d. Eighth Supplemental Indenture, dated as of October 27, 2021, to the Indenture, among the Corporation, The Bank of New York Mellon Trust Company, N.A., as successor trustee, and U.S. Bank National Association, as successor trustee, incorporated by reference to Exhibit No. 4.3 of the Corporation's Current Report on Form 8-K filed on November 2, 2021.

Exhibit No. (4)e. Copies of instruments defining the rights of holders of long-term debt will be furnished to the Securities and Exchange Commission on request.

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KIMBERLY-CLARK CORPORATION - 2025 Annual Report

Exhibit No. (4)f. Description of the Corporation's Common Stock, incorporated by reference to Exhibit No. (4)f of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023.

Exhibit No. (10)a. Management Achievement Award Program, as amended and restated January 1, 2021, incorporated by reference to Exhibit (10)a of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2020.*

Exhibit No. (10)b. Form of Executive Severance Agreement, incorporated by reference to Exhibit No. (10)b of the Corporation's Current Report on Form 8-K filed on September 16, 2020.*