Hello, I would like to add a comment here, I think it is true that ArcGIS will convert automatically to the coordinates if the coordinate system is not created with custom coordinates transformation. For instance we work with projected coordinates of wgs84 and we also have ED50 with custom parameters. If I convert same point to kmz in both coordinates, they will have more than 100m difference on the google earth map . For our case we always need to transform data from any projected ED50 to other arcgis defined coordinates before converting to kmz.