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2024 Transformation Initiative
 6 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
2024 Transformation Initiative 2024 Transformation Initiative
On March 27, 2024, we announced the 2024 Transformation Initiative intended to improve our focus on growth and reduce our structural cost base by realigning our internal operating and management structure to streamline our global supply chain and improve the efficiency of our corporate and regional overhead cost structures. The transformation is expected to impact our organization in all major geographies, and workforce reductions are expected to be in the range of 4% to 5%. Certain actions under the 2024 Transformation Initiative are being finalized for implementation, and accounting for such actions will commence when the actions are authorized for execution.
The 2024 Transformation Initiative is expected to be completed by the end of 2026, with total costs anticipated to be approximately $1.5 billion pre-tax. Cash costs are expected to be approximately 60% of that amount, primarily related to workforce reductions and other program costs. Expected non-cash charges are primarily related to incremental depreciation and asset write-offs, including losses associated with the expected exit of certain markets. Through June 30, 2025, cumulative pre-tax charges for the 2024 Transformation Initiative were $656 ($511 after-tax).
The following charges were incurred in connection with the 2024 Transformation Initiative:
Three Months Ended
June 30		Six Months Ended
June 30
2025202420252024
Cost of products sold:
Charges for workforce reductions$— $34 $14 $34 
Asset write-offs20 5 20 5 
Incremental depreciation57 3 89 3 
Other exit costs5 3 12 3 
Total82 45 135 45 
Marketing, research and general expenses:
Charges for workforce reductions13 46 15 69 
Other exit costs26 24 46 46 
Total39 70 61 115 
Other (income) and expense, net(a)
— 75 — 75 
Nonoperating expense1 — 3 — 
Total charges(b)
122 190 199 235 
Provision for income taxes(27)(73)(27)(84)
Net charges95 117 172 151 
Net impact related to noncontrolling interests(4)— (4)— 
Net charges attributable to Kimberly-Clark Corporation$91 $117 $168 $151 
(a)Other (Income) and expense, net includes losses recognized for the exit of certain businesses and markets as part of the 2024 Transformation Initiative.
(b)We do not include 2024 Transformation Initiative charges within our segment operating results. Total impact of these charges to the NA and IPC segments were $58 and $71, respectively, for the three months ended June 30, 2025, $27 and $126, respectively, for the three months ended June 30, 2024, $85 and $91, respectively, for the six months ended June 30, 2025, and $65 and $129, respectively, for the six months ended June 30, 2024, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 8.
The following summarizes the 2024 Transformation Initiative liabilities activity:
2025
2024 Transformation Initiative liabilities as of January 1$130 
Charges for workforce reductions and other cash exit costs86 
Cash payments(130)
Currency and other— 
2024 Transformation Initiative liabilities as of June 30$86 
2024 Transformation Initiative liabilities are recorded in Accrued expenses and other current liabilities. The charges related to the 2024 Transformation Initiative are reflected within Operating Activities of our Condensed Consolidated Statements of Cash Flows.