KMB

KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended June 30 Six Months Ended June 30 (In millions, except per share amounts) 2026 2025 2026 2025 Net Sales $ 4,189 $ 4,163 $ 8,352 $ 8,217 Cost of products sold 2,586 2,707 5,215 5,252 Gross Profit 1,603 1,456 3,137 2,965 Marketing, research and general expenses 1,004 863 1,924 1,718 Other (income) and expense, net (34) 1 (173) 24 Operating Profit 633 592 1,386 1,223 Nonoperating expense (12) (17) (27) (34) Interest income 4 5 9 12 Interest expense (53) (67) (111) (131) Income from Continuing Operations Before Income Taxes and Equity Interests 572 513 1,257 1,070 Provision for income taxes (217) (116) (381) (247) Income from Continuing Operations Before Equity Interests 355 397 876 823 Share of net income of equity companies 55 47 108 91 Income from Continuing Operations 410 444 984 914 Income (Loss) from Discontinued Operations, Net of Income Taxes (60) 68 41 171 Net Income 350 512 1,025 1,085 Net income attributable to noncontrolling interests (5) (3) (15) (9) Net Income Attributable to Kimberly-Clark Corporation $ 345 $ 509 $ 1,010 $ 1,076 Per Share Basis Net Income Attributable to Kimberly-Clark Corporation Basic: Continuing operations $ 1.22 $ 1.33 $ 2.92 $ 2.73 Discontinued operations (0.18) 0.20 0.12 0.51 Basic Earnings per Share $ 1.04 $ 1.53 $ 3.04 $ 3.24 Diluted: Continuing operations $ 1.22 $ 1.33 $ 2.91 $ 2.72 Discontinued operations (0.18) 0.20 0.12 0.51 Diluted Earnings per Share $ 1.04 $ 1.53 $ 3.03 $ 3.23 See Notes to the Unaudited Interim Condensed Consolidated Financial Statements. 1 KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended June 30 Six Months Ended June 30 (In millions) 2026 2025 2026 2025 Net Income $ 350 $ 512 $ 1,025 $ 1,085 Other Comprehensive Income (Loss), Net of Tax Unrealized currency translation adjustments 25 224 (8) 372 Employee postretirement benefits 27 (5) 41 (9) Cash flow hedges (27) (86) 21 (99) Total Other Comprehensive Income (Loss), Net of Tax 25 133 54 264 Comprehensive Income 375 645 1,079 1,349 Comprehensive income attributable to noncontrolling interests (4) (9) (11) (15) Comprehensive Income Attributable to Kimberly-Clark Corporation $ 371 $ 636 $ 1,068 $ 1,334 See Notes to the Unaudited Interim Condensed Consolidated Financial Statements. 2 KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except par value) June 30, 2026 December 31, 2025 ASSETS Current Assets Cash and cash equivalents $ 956 $ 688 Accounts receivable, net 1,858 1,892 Inventories 1,539 1,475 Other current assets 636 535 Current assets of discontinued operations 1,365 720 Total Current Assets 6,354 5,310 Property, Plant and Equipment, Net 6,948 6,775 Investments in Equity Companies 381 330 Goodwill 1,831 1,839 Other Intangible Assets, Net 73 77 Other Assets 1,036 1,062 Non-current Assets of Discontinued Operations 1,931 1,705 TOTAL ASSETS $ 18,554 $ 17,098 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Debt payable within one year $ 43 $ 694 Trade accounts payable 3,372 3,388 Accrued expenses and other current liabilities 2,269 1,888 Dividends payable 423 415 Current liabilities of discontinued operations 881 740 Total Current Liabilities 6,988 7,125 Long-Term Debt 6,474 6,474 Non-current Employee Benefits 561 605 Deferred Income Taxes 473 445 Other Liabilities 622 646 Non-current Liabilities of Discontinued Operations 1,540 151 Redeemable Preferred Securities of Subsidiaries 22 22 Stockholders' Equity Kimberly-Clark Corporation Preferred stock - no par value - authorized 20.0 million shares, none issued — — Common stock - $1.25 par value - authorized 1,200.0 million shares; issued 378.6 million shares as of June 30, 2026 and December 31, 2025 473 473 Additional paid-in capital 788 849 Common stock held in treasury, at cost - 46.0 and 46.7 million shares as of June 30, 2026 and December 31, 2025, respectively (5,890) (5,987) Retained earnings 9,765 9,611 Accumulated other comprehensive income (loss) (3,386) (3,444) Total Kimberly-Clark Corporation Stockholders' Equity 1,750 1,502 Noncontrolling Interests 124 128 Total Stockholders' Equity 1,874 1,630 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 18,554 $ 17,098 See Notes to the Unaudited Interim Condensed Consolidated Financial Statements. 3 KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) Three Months Ended June 30, 2026 (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 March 31, 2026 378,597 $ 473 $ 867 46,671 $ (5,982) $ 9,850 $ (3,412) $ 118 $ 1,914 Net income in stockholders' equity(a) — — — — — 345 — 7 352 Other comprehensive income, net of tax(a) — — — — — — 26 (2) 24 Stock-based awards exercised or vested — — (122) (634) 92 — — — (30) Repurchases of common stock — — — — — — — — — Recognition of stock-based compensation — — 39 — — — — — 39 Dividends declared ($1.28 per share) — — — — — (426) — — (426) Other — — 4 — — (4) — 1 1 Balance as of June 30, 2026 378,597 $ 473 $ 788 46,037 $ (5,890) $ 9,765 $ (3,386) $ 124 $ 1,874 Six Months Ended June 30, 2026 (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, 2025 378,597 $ 473 $ 849 46,699 $ (5,987) $ 9,611 $ (3,444) $ 128 $ 1,630 Net income in stockholders' equity(a) — — — — — 1,010 — 16 1,026 Other comprehensive income, net of tax(a) — — — — — — 58 (6) 52 Stock-based awards exercised or vested — — (127) (662) 96 — — — (31) Repurchases of common stock — — — — — — — — — Recognition of stock-based compensation — — 62 — — — — — 62 Dividends declared ($2.56 per share) — — — — — (851) — (14) (865) Other — — 4 — 1 (5) — — — Balance as of June 30, 2026 378,597 $ 473 $ 788 46,037 $ (5,890) $ 9,765 $ (3,386) $ 124 $ 1,874 (a) Excludes redeemable interests' share. 4 KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) Three Months Ended June 30, 2025 (In millions, except per share amounts. Shares in thousands) Common Stock Issued Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Non-controlling Interests Total Stockholders' Equity Shares Amount Shares Amount Balance as of March 31, 2025 378,597 $ 473 $ 842 46,730 $ (5,985) $ 9,406 $ (3,635) $ 123 $ 1,224 Net income in stockholders' equity(a) — — — — — 509 — 3 512 Other comprehensive income, net of tax(a) — — — — — — 127 6 133 Stock-based awards exercised or vested — — (88) (505) 67 — — — (21) Repurchases of common stock — — — 457 (61) — — — (61) Recognition of stock-based compensation — — 39 — — — — — 39 Dividends declared ($1.26 per share) — — — — — (419) — 1 (418) Other — — 5 — (7) (2) — (1) (5) Balance as of June 30, 2025 378,597 $ 473 $ 798 46,682 $ (5,986) $ 9,494 $ (3,508) $ 132 $ 1,403 Six Months Ended June 30, 2025 (In millions, except per share amounts. Shares in thousands) Common Stock Issued Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Non-controlling Interests Total Stockholders' Equity Shares Amount Shares Amount Balance 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) — — — — — 1,076 — 9 1,085 Other comprehensive income, net of tax(a) — — — — — — 258 6 264 Stock-based awards exercised or vested — — (141) (1,031) 130 — — — (11) Repurchases of common stock — — — 915 (123) — — — (123) Recognition of stock-based compensation — — 70 — — — — — 70 Dividends declared ($2.52 per share) — — — — — (837) — (17) (854) Other — — 7 — (7) (2) — (1) (3) Balance as of June 30, 2025 378,597 $ 473 $ 798 46,682 $ (5,986) $ 9,494 $ (3,508) $ 132 $ 1,403 (a) Excludes redeemable interests' share. See Notes to the Unaudited Interim Condensed Consolidated Financial Statements. 5 KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30 (In millions) 2026 2025 Operating Activities Net income $ 1,025 $ 1,085 Depreciation and amortization 360 440 Stock-based compensation 64 73 Deferred income taxes (83) (30) Net (gains) losses on asset and business dispositions (7) 36 Equity companies' earnings (in excess of) less than dividends paid (65) (50) Operating working capital 399 (471) Postretirement benefits (2) 9 Other (38) 5 Cash Provided by Operations 1,653 1,097 Investing Activities Capital spending (776) (401) Proceeds from asset and business dispositions 28 12 Investments in time deposits (166) (227) Maturities of time deposits 132 282 Other 17 22 Cash Used for Investing (765) (312) Financing Activities Cash dividends paid (843) (824) Change in short-term debt (252) 51 Debt proceeds 1,329 — Debt repayments (400) (250) Proceeds from exercise of stock options — 36 Repurchases of common stock — (120) Cash dividends paid to noncontrolling interests (15) (18) Other (41) (58) Cash Used for Financing (222) (1,183) Effect of Exchange Rate Changes on Cash and Cash Equivalents (4) 34 Change in Cash and Cash Equivalents 662 (364) Cash and cash equivalents from continuing operations - beginning of period 688 1,010 Cash and cash equivalents from discontinued operations - beginning of period(a) 13 11 Cash and Cash Equivalents - Beginning of Period 701 1,021 Cash and cash equivalents from continuing operations - end of period 956 634 Cash and cash equivalents from discontinued operations - end of period(a) 407 23 Cash and Cash Equivalents - End of Period $ 1,363 $ 657 (a) Included in Current assets of discontinued operations. See Notes to the Unaudited Interim Condensed Consolidated Financial Statements. 6 KIMBERLY-CLARK CORPORATION AND SUBSIDIARIES NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1. Accounting Policies Basis of Presentation The accompanying Unaudited Interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair statement of the results for the periods presented have been reflected. Amounts are reported in millions of dollars, except per share amounts, unless otherwise noted. For further information, refer to the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2025. The terms "Corporation," "Company," "Kimberly-Clark," "K-C," "we," "our" and "us" refer to Kimberly-Clark Corporation and its consolidated subsidiaries. International Family Care and Professional ("IFP") Transaction On June 5, 2025, we announced that the Company will form a joint venture with Suzano S.A. ("Suzano") and Suzano International Holding B.V., a wholly-owned subsidiary of Suzano ("Buyer"), comprised of substantially all the operations of the Company's former International Family Care and Professional ("IFP") segment (the "IFP Business"). To facilitate this transaction, we entered into an Equity and Asset Purchase Agreement (the "Purchase Agreement") with Buyer, pursuant to which we will, among other things, effectuate a reorganization through the transfer of certain assets, liabilities and equity interests of the IFP Business to Kimberly-Clark IFP NewCo B.V., an indirect wholly-owned subsidiary of the Company (the "Joint Venture"). At the time of closing, 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"). On July 1, 2026, subsequent to the quarter ended June 30, 2026, all consultation requirements and customary closing conditions set forth in the Purchase Agreement were satisfied and the IFP Transaction was completed. See Note 11 for further details. 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 Condensed Consolidated Statements of Income and have been excluded from both continuing operations and segment results for all periods presented. Further, the assets and liabilities of the IFP Business are classified as discontinued operations in the accompanying Condensed Consolidated Balance Sheets for all periods presented, and the Company has ceased depreciating and amortizing the long-lived assets of the IFP Business. The Condensed Consolidated Statements of Comprehensive Income, Stockholders' Equity and Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations. Unless otherwise noted, amounts and disclosures in the Notes to the Unaudited Interim Condensed Consolidated Financial Statements reflect only Kimberly-Clark's continuing operations. See Note 3 for additional details. Highly Inflationary Accounting GAAP requires the use of highly inflationary accounting for countries whose cumulative three-year inflation exceeds 100%. Under highly inflationary accounting, the countries’ functional currency becomes the U.S. dollar, and its income statement and balance sheet are measured in U.S. dollars using both current and historical rates of exchange. As of July 1, 2018, we adopted highly inflationary accounting for our subsidiaries in Argentina (“K-C Argentina”). The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net. As of June 30, 2026, K-C Argentina had an immaterial net peso monetary position. Net sales of K-C Argentina were approximately 1% of our net sales for the three and six months ended June 30, 2026 and 2025. 7 As of April 1, 2022, we adopted highly inflationary accounting for our subsidiary in Türkiye (“K-C Türkiye”). The effect of changes in exchange rates on lira-denominated monetary assets and liabilities has been reflected in earnings in Other (income) and expense, net. As of June 30, 2026, K-C Türkiye had an immaterial net lira monetary position. Net sales of K-C Türkiye were less than 1% of our net sales for the three and six months ended June 30, 2026 and 2025. Recently Issued Accounting Standards 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. During the second quarter of 2026, our Board of Directors approved an extension of the 2024 Transformation Initiative through the end of 2028. Total pre-tax costs are anticipated to be approximately $1.5 billion, with cash costs 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, 2026, cumulative pre-tax charges for the 2024 Transformation Initiative were $913 ($706 after-tax). 8 The following charges were incurred in connection with the 2024 Transformation Initiative: Three Months Ended June 30 Six Months Ended June 30 2026 2025 2026 2025 Cost of products sold: Charges for workforce reductions $ — $ — $ 3 $ 14 Asset write-offs 16 20 20 20 Incremental depreciation — 57 31 89 Other exit costs 6 5 10 12 Total 22 82 64 135 Marketing, research and general expenses: Charges for workforce reductions 6 13 15 15 Other exit costs 27 26 48 46 Total 33 39 63 61 Other (income) and expense, net(a) (1) — (22) — Nonoperating expense — 1 — 3 Total charges(b) 54 122 105 199 Provision for income taxes (14) (27) (33) (27) Net charges 40 95 72 172 Net charges related to noncontrolling interests — (4) (1) (4) Net charges attributable to Kimberly-Clark Corporation $ 40 $ 91 $ 71 $ 168 (a)Other (income) and expense, net includes gains from the sale of manufacturing facilities and associated real estate 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 segment would have been $45 and $101 for the three and six months ended June 30, 2026, respectively (IPC segment amount was not material); $58 and $71 to the NA and IPC segments, respectively, for the three months ended June 30, 2025; and $85 and $91 to the NA and IPC segments, respectively, for the six months ended June 30, 2025, with the residual relating to Corporate & Other. See further discussion around our segment operating results in Note 9. The following summarizes the 2024 Transformation Initiative liabilities activity: Total Liabilities as of December 31, 2025 $ 62 Charges for workforce reductions and other cash exit costs 76 Cash payments (84) Currency and other (6) Liabilities as of June 30, 2026 $ 48 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. 9 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. On July 1, 2026, subsequent to the quarter ended June 30, 2026, all consultation requirements and customary closing conditions set forth in the Purchase Agreement were satisfied and the IFP Transaction was completed. See Note 11 for further details. On June 26, 2026, Fampro Tissue Finance Co Limited (“Fampro”) entered into a facilities agreement (the “Facilities Agreement”) with FamPro Tissue Holdings B.V., as the original guarantor, Banco Bilbao Vizcaya Argentaria, S.A. New York Branch, Bank of America, N.A., London Branch, BNP Paribas and J.P. Morgan Securities plc, as mandated lead arrangers, bookrunners and global coordinators and the others lenders party thereto, that provides for (i) EUR 1,170 million of senior unsecured term loans (the “IFP Term Loan Facility”) and (ii) a EUR 260 million senior unsecured revolving credit facility (the “IFP Revolving Credit Facility”). The IFP Term Loan Facility matures in June 2031 and the IFP Revolving Credit Facility matures in June 2031 with two one-year extensions subject to consent of the lenders. Borrowings under the IFP Term Loan Facility and the IFP Revolving Credit Facility will bear interest at a rate equal to EURIBOR (subject to a floor of 0.00%) plus an applicable margin. The applicable margin for the IFP Term Loan Facility will range from 0.95% to 1.90% depending on our credit rating and is initially 1.15%. The applicable margin for the IFP Revolving Credit Facility will range from 0.65% to 1.6% depending on credit rating and is initially 0.85%. On June 29, 2026, the Company borrowed approximately $1.3 billion under the IFP Term Loan Facility. In connection with the closing of the IFP Transaction, the obligations under the Facilities Agreement were transferred to the Joint Venture and as a result, the obligations are non-recourse to Kimberly-Clark. Financial Information of Discontinued Operations The following table presents the components of Income (Loss) from Discontinued Operations, Net of Income Taxes: Three Months Ended June 30 Six Months Ended June 30 2026 2025 2026 2025 Net Sales $ 802 $ 802 $ 1,642 $ 1,588 Cost of products sold 565 592 1,151 1,154 Gross Profit 237 210 491 434 Marketing, research and general expenses 165 108 281 194 Other (income) and expense, net 2 2 2 2 Operating Profit 70 100 208 238 Nonoperating expense — 1 — — Income from discontinued operations before income taxes 70 101 208 238 Provision for income taxes (130) (33) (167) (67) Income (Loss) from Discontinued Operations, Net of Income Taxes $ (60) $ 68 $ 41 $ 171 As a result of the IFP Transaction, we incurred separation costs of $72 and $104 for the three and six months ended June 30, 2026, respectively, and $33 for the three and six months ended June 30, 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 Provision for income taxes for the three and six months ended June 30, 2026 includes incremental net tax charges relating to the impacts from an intercompany intellectual property transaction and reorganization activities completed in connection with the IFP Transaction. 10 The following table presents significant non-cash items and capital expenditures of discontinued operations: Three Months Ended June 30 Six Months Ended June 30 2026 2025 2026 2025 Depreciation and Amortization $ — $ 28 $ — $ 68 Capital Spending 67 21 81 46 The following table presents the components of assets and liabilities classified as discontinued operations: June 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 407 $ 13 Accounts receivable, net 497 302 Inventories 408 383 Other current assets 53 22 Current Assets of Discontinued Operations $ 1,365 $ 720 Property, Plant and Equipment, Net $ 1,506 $ 1,425 Goodwill 180 179 Other Intangible Assets, Net 6 7 Other Assets 239 94 Non-current Assets of Discontinued Operations $ 1,931 $ 1,705 Liabilities Debt payable within one year $ 8 $ 4 Trade accounts payable 533 500 Accrued expenses and other current liabilities 340 236 Current Liabilities of Discontinued Operations $ 881 $ 740 Long-Term Debt $ 1,357 $ 18 Non-current Employee Benefits 19 18 Deferred Income Taxes 76 32 Other Liabilities 88 83 Non-current Liabilities of Discontinued Operations $ 1,540 $ 151 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. 11 Note 4. Acquisitions 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 three and six months ended June 30, 2026, we incurred $109 and $157, respectively, of acquisition-related costs in connection with the Kenvue Acquisition, which are included in Marketing, research and general expenses. As of June 30, 2026 and 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. Note 5. Fair Value Information The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are: Level 1 – Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2 – Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require inputs that are significant to the valuation and are unobservable. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. During the six months ended June 30, 2026 and for the full year 2025, there were no significant transfers to or from level 3 fair value determinations. Derivative assets and liabilities are measured on a recurring basis at fair value. As of June 30, 2026 and December 31, 2025, derivative assets were $135 and $81, respectively, and derivative liabilities were $213 and $191, 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 8 for additional information on our use of derivative instruments. 12 Redeemable preferred securities of subsidiaries are measured on a recurring basis at their estimated redemption values, which approximate fair value. As of June 30, 2026 and December 31, 2025, the securities were valued at $22. 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 $69 and $71 as of June 30, 2026 and December 31, 2025, respectively. The COLI policies are a source of funding primarily for our nonqualified employee benefits and are included in Other Assets in the Condensed Consolidated Balance Sheets. The COLI policies are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy. The following table includes the fair value of our financial instruments for which disclosure of fair value is required: Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value June 30, 2026 December 31, 2025 Assets Cash and cash equivalents(a) 1 $ 956 $ 956 $ 688 $ 688 Time deposits(b) 1 124 124 94 94 Liabilities Short-term debt(c) 2 31 31 282 282 Long-term debt(d) 2 6,486 6,013 6,886 6,491 (a)Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of 90 days or less. Cash equivalents are recorded at cost, which approximates fair value. (b)Time deposits are composed of deposits with original maturities of more than 90 days but less than one year and instruments with original maturities of greater than one year, included in Other current assets or Other Assets in the Condensed Consolidated Balance Sheets, as appropriate. Time deposits are recorded at cost, which approximates fair value. (c)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. (d)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. 13 Note 6. Earnings Per Share Basic and diluted earnings per share ("EPS") were calculated as follows: Three Months Ended June 30 Six Months Ended June 30 (In millions, except per share amounts) 2026 2025 2026 2025 Income from Continuing Operations $ 410 $ 444 $ 984 $ 914 Less: Net income attributable to noncontrolling interests (5) (3) (15) (9) Income from Continuing Operations Attributable to Kimberly-Clark Corporation 405 441 969 905 Income (Loss) from Discontinued Operations, Net of Income Taxes (60) 68 41 171 Net Income Attributable to Kimberly-Clark Corporation $ 345 $ 509 $ 1,010 $ 1,076 Weighted-Average Common Shares Basic 332.4 332.1 332.1 331.9 Dilutive effect of stock options and restricted share unit awards 0.9 1.2 1.2 1.4 Diluted 333.3 333.3 333.3 333.3 Basic: Continuing operations $ 1.22 $ 1.33 $ 2.92 $ 2.73 Discontinued operations (0.18) 0.20 0.12 0.51 Basic Earnings per Share $ 1.04 $ 1.53 $ 3.04 $ 3.24 Diluted: Continuing operations $ 1.22 $ 1.33 $ 2.91 $ 2.72 Discontinued operations (0.18) 0.20 0.12 0.51 Diluted Earnings per Share $ 1.04 $ 1.53 $ 3.03 $ 3.23 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 2.4 million for the three and six months ended June 30, 2026 and 1.1 million for the three and six months ended June 30, 2025. The number of common shares outstanding as of June 30, 2026 and 2025 was 332.6 million and 331.9 million, respectively. Note 7. 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 for the six months ended June 30, 2026 was primarily due to the strengthening of the U.S. dollar versus various foreign currencies. 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. 14 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, 2024 $ (3,068) $ (775) $ 47 $ 30 Other comprehensive income (loss) before reclassifications 362 (29) 5 (107) (Income) loss reclassified from AOCI — 17 (a) (2) (a) 12 (b) Net current period other comprehensive income (loss) 362 (12) 3 (95) Balance as of June 30, 2025 $ (2,706) $ (787) $ 50 $ (65) Balance as of December 31, 2025 $ (2,673) $ (758) $ 47 $ (60) Other comprehensive income (loss) before reclassifications (2) 6 21 (18) (Income) loss reclassified from AOCI — 16 (a) (2) (a) 37 (b) Net current period other comprehensive income (loss) (2) 22 19 19 Balance as of June 30, 2026 $ (2,675) $ (736) $ 66 $ (41) (a) Included in Nonoperating expense as part of the computation of net periodic benefit costs. (b) 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. Note 8. Objectives and Strategies for Using Derivatives As a multinational enterprise, we are exposed to financial risks, such as changes in foreign currency exchange rates, interest rates, and commodity prices. We employ a number of practices to manage these risks, including operating and financing activities and, where appropriate, the use of derivative instruments. As of June 30, 2026 and December 31, 2025, derivative assets were $135 and $81, respectively, and derivative liabilities were $213 and $191, respectively, primarily comprised of foreign currency exchange, interest rate and commodity price contracts. Derivative assets are recorded in Other current assets or Other Assets, as appropriate, and derivative liabilities are recorded in Accrued expenses and other current liabilities or Other Liabilities, as appropriate. Foreign Currency Exchange Rate Risk Translation adjustments result from translating foreign entities' financial statements into U.S. dollars from their functional currencies. The risk to any particular entity's net assets is reduced to the extent that the entity is financed with local currency borrowings. A portion of our balance sheet translation exposure for certain affiliates, which results from changes in translation rates between the affiliates’ functional currencies and the U.S. dollar, is hedged with cross-currency swap contracts and certain foreign denominated debt which are designated as net investment hedges. The foreign currency exposure on certain non-functional currency denominated monetary assets and liabilities, primarily intercompany loans and accounts payable, is hedged primarily with undesignated derivative instruments. Derivative instruments are used to hedge a portion of forecasted cash flows denominated in foreign currencies for non-U.S. operations' purchases of raw materials, which are priced in U.S. dollars, and imports of intercompany finished goods and work-in-process 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. We also use derivative instruments, such as forward-starting swaps or treasury lock contracts, to manage our exposure to changes in benchmark interest rates associated with our anticipated issuance of fixed-rate debt. These derivative instruments are typically designated as cash flow hedges. 15 Commodity Price Risk We use derivative instruments, such as commodity forward and price swap contracts, to hedge a portion of our exposure to market risk arising from changes in prices of certain commodities. These derivatives are primarily designated as cash flow hedges of specific quantities of the underlying commodity expected to be purchased in future months. In addition, we utilize negotiated contracts of varying durations along with strategic pricing mechanisms to manage volatility for a portion of our commodity costs. Fair Value Hedges Derivative instruments that are designated and qualify as fair value hedges are predominantly used to manage interest rate risk. The fair values of these derivative instruments are recorded as an asset or liability, as appropriate, with the offset recorded in Interest expense. The offset to the change in fair values of the related debt is also recorded in Interest expense. Any realized gain or loss on the derivatives that hedge interest rate risk is amortized to Interest expense over the life of the related debt. As of June 30, 2026, the aggregate notional values and carrying values of debt subject to outstanding interest rate contracts designated as fair value hedges were $325 and $304, respectively. For the three and six months ended June 30, 2026 and 2025, 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. Foreign Exchange and Commodity Contracts As of June 30, 2026, the aggregate notional value of outstanding foreign exchange and commodity derivative contracts designated as cash flow hedges was $2.1 billion. Unrealized losses of $17 and $124 were recorded in AOCI for the three months ended June 30, 2026 and 2025, respectively. Unrealized gains of $20 and unrealized losses of $144 were recorded in AOCI for the six months ended June 30, 2026 and 2025, respectively. Losses of $15 and $11 for the three months ended June 30, 2026 and 2025, respectively, and losses of $44 and $17 for the six months ended June 30, 2026 and 2025, respectively, were reclassified from AOCI to Income (Loss) from Discontinued Operations, Net of Income Taxes (discussed further below), Other (income) and expense, net and Cost of products sold. For the three and six months ended June 30, 2026, no material gains or losses were reclassified from AOCI into earnings as a result of the discontinuance of cash flow hedge accounting. For the three and six months ended June 30, 2025, we discontinued cash flow hedge accounting for certain foreign exchange and commodity instruments with a notional value of $681 because the forecasted transactions were no longer probable of occurring due to the IFP Transaction. As a result, pre-tax losses of $20 were reclassified from AOCI into Income (Loss) from Discontinued Operations, Net of Income Taxes. The maximum maturity of foreign exchange and commodity derivative contracts in place as of June 30, 2026 is May 2029. Forward-Starting Interest Rate Swap Contracts In the second quarter of 2026, we entered into $4.3 billion of aggregate notional forward-starting interest rate swaps in anticipation of the issuance of fixed-rate debt in connection with the Kenvue Acquisition. The gains or losses initially recorded in AOCI will be amortized and recorded in Interest expense over the term of the hedged debt. Unrealized losses of $24 were recorded in AOCI for the three and six months ended June 30, 2026. As of June 30, 2026, losses associated with our cash flow hedges 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 $2. 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 June 30, 2026, the aggregate notional value of these instruments was $1.8 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. Unrealized losses of $12 and $128 were recorded in AOCI for the three months ended June 30, 2026 and 2025, respectively. Unrealized gains of $15 and unrealized losses of $148 were recorded in AOCI for the six months 16 ended June 30, 2026 and 2025, respectively. For the three and six months ended June 30, 2026 and 2025, no material amounts were reclassified from AOCI to Interest expense. For the three and six months ended June 30, 2026 and 2025, 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 instruments are immediately recognized in Other (income) and expense, net. Gains of $0 and $38 were recorded for the three months ended June 30, 2026 and 2025, respectively. Losses of $3 and gains of $62 were recorded for the six months ended June 30, 2026 and 2025, 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 June 30, 2026, the notional amount of these undesignated derivative instruments was approximately $5.4 billion. Note 9. 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"). 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. Certain operations and commercial activities of the former IFP segment retained by K-C are now reported in the NA and IPC segments. For further information about these changes, refer to our Annual Report on Form 10-K for the year ended December 31, 2025. 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. 17 The tables below present net sales and the significant expense categories that are included in Segment Operating Profit and regularly provided to our CODM: Three Months Ended June 30, 2026 NA IPC Total Net Sales $ 2,698 $ 1,491 $ 4,189 Cost of Products Sold 1,535 1,007 2,542 Advertising and Promotion Expense 179 101 280 Research, Selling and General Expense 259 196 455 Other (Income) and Expense, net(a) — 1 1 Segment Operating Profit $ 725 $ 186 $ 911 Corporate & Other (278) Total Operating Profit $ 633 Six Months Ended June 30, 2026 NA IPC Total Net Sales $ 5,349 $ 3,003 $ 8,352 Cost of Products Sold 3,117 1,995 5,112 Advertising and Promotion Expense 366 212 578 Research, Selling and General Expense 518 364 882 Other (Income) and Expense, net(a) — 1 1 Segment Operating Profit $ 1,348 $ 431 $ 1,779 Corporate & Other (393) Total Operating Profit $ 1,386 Three Months Ended June 30, 2025 NA IPC Total Net Sales $ 2,730 $ 1,433 $ 4,163 Cost of Products Sold 1,642 967 2,609 Advertising and Promotion Expense 170 98 268 Research, Selling and General Expense 263 183 446 Other (Income) and Expense, net(a) — 3 3 Segment Operating Profit $ 655 $ 182 $ 837 Corporate & Other (245) Total Operating Profit $ 592 (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. 18 Six Months Ended June 30, 2025 NA IPC Total Net Sales $ 5,398 $ 2,819 $ 8,217 Cost of Products Sold 3,205 1,873 5,078 Advertising and Promotion Expense 335 203 538 Research, Selling and General Expense 525 356 881 Other (Income) and Expense, net(a) — 4 4 Segment Operating Profit $ 1,333 $ 383 $ 1,716 Corporate & Other (493) Total Operating Profit $ 1,223 (a) Other (income) and expense, net primarily includes the effects of changes in exchange rates on monetary assets and liabilities for subsidiaries where we have adopted highly inflationary accounting. Depreciation and amortization expense by segment: Three Months Ended June 30 Six Months Ended June 30 2026 2025 2026 2025 NA $ 117 $ 124 $ 261 $ 228 IPC 50 70 99 135 Total Segment Depreciation and Amortization 167 194 360 363 Corporate & Other — — — 9 Total(a) $ 167 $ 194 $ 360 $ 372 (a) Excludes discontinued operations. See Note 3 for depreciation and amortization of discontinued operations. Capital spending by segment: Three Months Ended June 30 Six Months Ended June 30 2026 2025 2026 2025 NA $ 206 $ 141 $ 543 $ 284 IPC 50 35 91 71 Total Segment Capital Spending 256 176 634 355 Corporate & Other 29 — 61 — Total(a) $ 285 $ 176 $ 695 $ 355 (a) Excludes discontinued operations. See Note 3 for capital spending of discontinued operations. Sales of Principal Products: Three Months Ended June 30 Six Months Ended June 30 2026 2025 2026 2025 Baby and Child Care $ 1,752 $ 1,768 $ 3,448 $ 3,405 Family Care 1,015 997 2,055 2,024 Professional 476 465 936 911 Adult Care 493 492 976 968 Feminine Care 423 412 874 855 All other 30 29 63 54 Total $ 4,189 $ 4,163 $ 8,352 $ 8,217 19 Note 10. Supplemental Balance Sheet Data The following schedule presents a summary of inventories by major class: June 30, 2026 December 31, 2025 LIFO Non-LIFO Total LIFO Non-LIFO Total Raw materials $ 114 $ 215 $ 329 $ 114 $ 197 $ 311 Work in process 119 35 154 111 38 149 Finished goods 520 477 997 484 468 952 Supplies and other — 250 250 — 254 254 753 977 1,730 709 957 1,666 Excess of FIFO or weighted-average cost over LIFO cost (191) — (191) (191) — (191) Total $ 562 $ 977 $ 1,539 $ 518 $ 957 $ 1,475 Inventories are valued at the lower of cost or net realizable value, determined on the FIFO or weighted-average cost methods, and at the lower of cost or market, determined on the LIFO cost method. The following schedule presents a summary of property, plant and equipment, net: June 30, 2026 December 31, 2025 Land $ 143 $ 134 Buildings 2,375 2,354 Machinery and equipment 12,873 12,820 Construction in progress 1,450 1,201 16,841 16,509 Less accumulated depreciation (9,893) (9,734) Total $ 6,948 $ 6,775 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 as of June 30, 2026 and December 31, 2025, of which $186 and $184, respectively, are reported as discontinued operations. Amounts are recorded within Trade accounts payable and Current liabilities of discontinued operations. Note 11. Subsequent Events On July 1, 2026, all consultation requirements and customary closing conditions set forth in the Purchase Agreement were satisfied and the IFP Transaction was completed for a cash purchase price of approximately $1.3 billion, subject to certain post-closing adjustments. A portion of the cash proceeds is expected to be attributed to a long-term license granted to the Joint Venture for the use of certain of Kimberly-Clark’s global brands, patents, and know-how in manufacturing. We also retained a 49% equity interest in the Joint Venture, with an initial estimated fair value of approximately $1.2 billion. Based on preliminary estimates, we expect to recognize a pre-tax gain of more than $1.0 billion within our results from discontinued operations in the third quarter of 2026. 20