Business Segment Information

We are organized into operating segments based on product groupings. These operating segments have been aggregated into three reportable global business segments: Personal Care, Consumer Tissue and KCP. The reportable segments were determined in accordance with how our chief operating decision maker and our executive managers develop and execute 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. Segment management is evaluated on several factors, including operating profit. Segment operating profit excludes other (income) and expense, net and income and expense not associated with ongoing operations of the business segments, including the costs of corporate decisions related to the 2018 Global Restructuring Program described in Note 2.

The principal sources of revenue in each global business segment are described below:

•

Personal Care brands offer our consumers a trusted partner in caring for themselves and their families by delivering confidence, protection and discretion through a wide variety of innovative solutions and products such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products. Products in this segment are sold under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise and other brand names.


•	Consumer Tissue offers a wide variety of innovative solutions and trusted brands that responsibly improve everyday living for families around the world. Products in this segment include facial and bathroom tissue, paper towels, napkins and related products, and are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve and other brand names.

•

K-C Professional partners with businesses to create Exceptional Workplaces, helping to make them healthier, safer and more productive through a range of solutions and supporting products such as wipers, tissue, towels, apparel, soaps and sanitizers. Our brands, including Kleenex, Scott, WypAll, Kimtech and KleenGuard are well known for quality and trusted to help people around the world work better.

Net sales to Walmart Inc. as a percent of our consolidated net sales were approximately 14 percent in 2018, 2017 and 2016.

Information concerning consolidated operations by business segment is presented in the following tables:

Consolidated Operations by Business Segment



	Year Ended December 31
	2018			2017			2016
NET SALES^(a)
Personal Care	$	9,037		$	9,078		$	9,046
Consumer Tissue	6,015			5,932			5,967
K-C Professional	3,382			3,297			3,235
Corporate & Other	52			41			39
TOTAL NET SALES	$	18,486		$	18,348		$	18,287

OPERATING PROFIT^(b)
Personal Care	$	1,833		$	1,933		$	1,884
Consumer Tissue	875			1,052			1,136
K-C Professional	634			645			616
Corporate & Other^(c)	(1,112		)	(245		)	(245		)
Other (income) and expense, net^(d)	1			27			8
TOTAL OPERATING PROFIT	$	2,229		$	3,358		$	3,383


(a)	Net sales in the U.S. to third parties totaled $8,803, $8,741 and $8,918 in 2018, 2017 and 2016, respectively. No other individual country's net sales exceeds 10 percent of total net sales.


(b)	Segment operating profit excludes other (income) and expense, net and income and expenses not associated with the business segments.


(c)	Corporate & Other includes charges of $921 related to the 2018 Global Restructuring Program in 2018, and charges related to the 2014 Organization Restructuring of $38 in 2016. Restructuring charges for the 2018 Global Restructuring Program related to the personal care, consumer tissue and K-C Professional business segments were $528, $229 and $125, respectively, for 2018.


(d)	Other (income) and expense, net for 2018 includes income of $12 related to the 2018 Global Restructuring Program, 2017 includes a charge of $24 for the early redemption of debt and 2016 includes income of $11 related to the deconsolidation of our Venezuelan operations.



	Personal Care		Consumer Tissue		K-C Professional		Corporate & Other		Total
Depreciation and Amortization
2018	$	426	$	331	$	121	$	4	$	882
2017	324		283		112		5		724
2016	305		280		116		4		705
Capital Spending
2018	415		299		157		6		877
2017	405		281		92		7		785
2016	421		250		95		5		771
Goodwill^(a)
2018	564		522		388		—		1,474
2017	617		559		400		—		1,576
2016	549		538		393		—		1,480
Assets
2018	6,208		4,738		2,285		1,287		14,518
2017	6,592		5,007		2,255		1,297		15,151
2016	6,141		4,761		2,151		1,549		14,602


(a)	In 2017, we acquired the remaining 50 percent of our joint venture in India, which resulted in the recognition of $35 of personal care goodwill. All other changes in goodwill are related to currency.

Sales of Principal Products



(Billions of dollars)	2018		2017		2016
Consumer tissue products	$	6.0	$	5.9	$	6.0
Baby and child care products	6.3		6.3		6.4
Away-from-home professional products	3.4		3.3		3.2
All other	2.8		2.8		2.7
Consolidated	$	18.5	$	18.3	$	18.3