The Alabama Supreme Court held that the sale of an Alabama paper mill and timberlands by a company in the business of the manufacture and sale of tissue and paper-related products constituted non-business income allocable to Alabama. In re: Kimberly-Clark Corporation and Kimberly-Clark Worldwide, Inc. v. Alabama Dep’t of Rev., CV-03-994 and CV-03-2157 (Feb. 26, 2010).

Background

Kimberly-Clark Corporation (Kimberly-Clark), domiciled in Texas, sold paper and paper products throughout the world. Kimberly-Clark sold a paper mill and timberlands in Alabama (the Coosa Properties) that it had acquired more than 30 years earlier. The 1997 disposition was a response to a Kimberly-Clark strategy adopted in the 1990s to reduce (but not eliminate) its dependence on internal pulp production.