Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2021 | Oct. 19, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-07151 | |
Entity Registrant Name | THE CLOROX COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 31-0595760 | |
Entity Address, Address Line One | 1221 Broadway | |
Entity Address, City or Town | Oakland | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94612-1888 | |
City Area Code | 510 | |
Local Phone Number | 271-7000 | |
Title of 12(b) Security | Common Stock - $1.00 par value | |
Trading Symbol | CLX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 122,862,766 | |
Entity Central Index Key | 0000021076 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 1,806 | $ 1,916 |
Cost of products sold | 1,136 | 996 |
Gross profit | 670 | 920 |
Selling and administrative expenses | 236 | 238 |
Advertising costs | 182 | 179 |
Research and development costs | 33 | 32 |
Interest expense | 25 | 25 |
Other (income) expense, net | 9 | (80) |
Earnings before income taxes | 185 | 526 |
Income taxes | 42 | 109 |
Net earnings | 143 | 417 |
Less: Net earnings attributable to noncontrolling interests | 1 | 2 |
Net earnings attributable to Clorox | $ 142 | $ 415 |
Net earnings per share attributable to Clorox | ||
Basic net earnings per share (in dollars per share) | $ 1.15 | $ 3.28 |
Diluted net earnings per share (in dollars per share) | $ 1.14 | $ 3.22 |
Weighted average shares outstanding (in thousands) | ||
Basic (in shares) | 122,980 | 126,346 |
Diluted (in shares) | 124,042 | 128,729 |
Comprehensive income | $ 122 | $ 434 |
Less: Total comprehensive income attributable to noncontrolling interests | 1 | 2 |
Total comprehensive income attributable to Clorox | $ 121 | $ 432 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 |
Current assets | ||
Cash and cash equivalents | $ 210 | $ 319 |
Receivables, net | 654 | 604 |
Inventories, net | 785 | 752 |
Prepaid expenses and other current assets | 171 | 154 |
Total current assets | 1,820 | 1,829 |
Property, plant and equipment, net of accumulated depreciation and amortization of $2,422 and $2,382, respectively | 1,301 | 1,302 |
Operating lease right-of-use assets | 310 | 332 |
Goodwill | 1,566 | 1,575 |
Trademarks, net | 691 | 693 |
Other intangible assets, net | 218 | 225 |
Other assets | 368 | 378 |
Total assets | 6,274 | 6,334 |
Current liabilities | ||
Notes and loans payable | 86 | 0 |
Current maturities of long-term debt | 899 | 300 |
Current operating lease liabilities | 72 | 81 |
Accounts payable and accrued liabilities | 1,582 | 1,675 |
Total current liabilities | 2,639 | 2,056 |
Long-term debt | 1,885 | 2,484 |
Long-term operating lease liabilities | 288 | 301 |
Other liabilities | 846 | 834 |
Deferred income taxes | 69 | 67 |
Total liabilities | 5,727 | 5,742 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock: $1.00 par value; 750,000,000 shares authorized; 130,741,461 shares issued as of September 30, 2021 and June 30, 2021; and 122,856,251 and 122,780,220 shares outstanding as of September 30, 2021 and June 30, 2021, respectively | 131 | 131 |
Additional paid-in capital | 1,166 | 1,186 |
Retained earnings | 1,027 | 1,036 |
Treasury stock, at cost: 7,885,210 and 7,961,241 shares as of September 30, 2021 and June 30, 2021, respectively | (1,389) | (1,396) |
Accumulated other comprehensive net (loss) income | (567) | (546) |
Total Clorox stockholders’ equity | 368 | 411 |
Noncontrolling interests | 179 | 181 |
Total stockholders’ equity | 547 | 592 |
Total liabilities and stockholders’ equity | $ 6,274 | $ 6,334 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation and amortization | $ 2,422 | $ 2,382 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 130,741,461 | 130,741,461 |
Common stock, shares outstanding (in shares) | 122,856,251 | 122,780,220 |
Treasury stock, shares (in shares) | 7,885,210 | 7,961,241 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net earnings | $ 143 | $ 417 |
Adjustments to reconcile net earnings to net cash provided by operations: | ||
Depreciation and amortization | 55 | 51 |
Stock-based compensation | 9 | 13 |
Deferred income taxes | 2 | 20 |
Other | 8 | (71) |
Changes in: | ||
Receivables, net | (53) | (8) |
Inventories, net | (37) | (70) |
Prepaid expenses and other current assets | (14) | (18) |
Accounts payable and accrued liabilities | (96) | 20 |
Operating lease right-of-use assets and liabilities, net | 0 | (1) |
Income taxes payable / prepaid | 24 | 30 |
Net cash provided by operations | 41 | 383 |
Investing activities: | ||
Capital expenditures | (52) | (69) |
Businesses acquired, net of cash acquired | 0 | (85) |
Other | (4) | 3 |
Net cash used for investing activities | (56) | (151) |
Financing activities: | ||
Notes and loans payable, net | 86 | 0 |
Treasury stock purchased | (25) | (100) |
Cash dividends paid to Clorox stockholders | (142) | (140) |
Issuance of common stock for employee stock plans and other | (11) | (7) |
Net cash used for financing activities | (92) | (247) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (3) | 3 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (110) | (12) |
Cash, cash equivalents, and restricted cash: | ||
Beginning of period | 324 | 879 |
End of period | $ 214 | $ 867 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim condensed consolidated financial statements for the three months ended September 30, 2021 and 2020, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its controlled subsidiaries (the Company) for the periods presented. However, the financial results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The information in this report should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2021, which includes a complete set of footnote disclosures, including the Company’s significant accounting policies. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, “Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes,” which removes certain exceptions to the general principles in ASC 740 and amends existing guidance to improve consistent application. Certain amendments must be applied prospectively, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. The Company adopted this standard as of July 1, 2021. The adoption of this new standard did not have a material impact on the Company’s condensed consolidated financial statements. |
BUSINESS ACQUIRED
BUSINESS ACQUIRED | 3 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUIRED | BUSINESS ACQUIRED Saudi Joint Venture Acquisition On July 9, 2020, the Company increased its investment in each of the two entities comprising its joint venture in the Kingdom of Saudi Arabia (Saudi joint venture) from 30 percent to 51 percent. The joint venture offers customers in the Gulf region a range of cleaning and disinfecting products. With the additional investment, the Company has consolidated this joint venture into its consolidated financial statements from the date of acquisition and reflects operations within the International reportable segment. The equity and income attributable to the other joint venture owners is recorded and presented as noncontrolling interests. As a result of this transaction, the carrying value of the Company’s previously held equity investment was remeasured to fair value, and resulted in an $85 non-recurring, noncash gain recorded in Other (income) expense, net in the condensed consolidated statement of earnings and adjusted in Other operating activities in the condensed consolidated statement of cash flows for the first quarter of fiscal year 2021. The Saudi joint venture acquisition was accounted for under the acquisition method of accounting for business combinations. The total purchase consideration was $111 consisting of $100 cash paid and $11 from the net effective settlement of preexisting arrangements between the Company and the joint venture. The assets and liabilities of the joint venture were recorded at their respective estimated fair value as of the acquisition date. The fair value of the total net assets and noncontrolling interests recorded as of the date of acquisition was $412 and $198, respectively. The purchase price allocation was finalized during the second quarter of fiscal year 2021. Refer to the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021 for the final purchase price allocation, valuation methodology and other information related to the Saudi joint venture acquisition. |
INVENTORIES, NET
INVENTORIES, NET | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories, net, consisted of the following as of: 9/30/2021 6/30/2021 Finished goods $ 594 $ 543 Raw materials and packaging 220 229 Work in process 13 11 LIFO allowances (42) (31) Total $ 785 $ 752 |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2021 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Financial Risk Management and Derivative Instruments The Company is exposed to certain commodity, foreign currency and interest rate risks related to its ongoing business operations and uses derivative instruments to mitigate its exposure to these risks. Commodity Price Risk Management The Company may use commodity exchange traded futures and over-the-counter swap contracts, which are generally no longer than 2 years, to fix the price of a portion of its forecasted raw material requirements. Commodity purchase contracts are measured at fair value using market quotations obtained from the Chicago Board of Trade commodity futures exchange and commodity derivative dealers. As of September 30, 2021, the notional amount of commodity derivatives was $35, of which $24 related to soybean oil futures used for the Food products business and $11 related to jet fuel swaps used for the Grilling business. As of June 30, 2021, the notional amount of commodity derivatives was $32, of which $23 related to soybean oil futures and $9 related to jet fuel swaps. Foreign Currency Risk Management The Company may also enter into certain over-the-counter derivative contracts to manage a portion of the Company’s forecasted foreign currency exposure associated with the purchase of inventory. These foreign currency contracts generally have durations of no longer than 2 years. The foreign exchange contracts are measured at fair value using information quoted by foreign exchange dealers. The notional amounts of outstanding foreign currency forward contracts used by the Company’s subsidiaries to hedge forecasted purchases of inventory were $50 and $70, respectively, as of September 30, 2021 and June 30, 2021. Interest Rate Risk Management The Company may enter into over-the-counter interest rate contracts to fix a portion of the benchmark interest rate prior to the anticipated issuance of fixed rate debt. These interest rate contracts generally have durations of less than 3 years. The interest rate contracts are measured at fair value using information quoted by bond dealers. The notional amounts of outstanding interest rate contracts used by the Company were $300 as of both September 30, 2021 and June 30, 2021. These contracts represent forward starting interest rate swap contracts with a maturity date of September 2022 to manage the exposure to interest rate volatility associated with future interest payments on a forecasted debt issuance. Commodity, Foreign Exchange and Interest Rate Derivatives The Company designates its commodity forward and futures contracts for forecasted purchases of raw materials, foreign currency forward contracts for forecasted purchases of inventory and interest rate contracts for forecasted interest payments as cash flow hedges. The effects of derivative instruments designated as hedging instruments on Other comprehensive (loss) income and Net earnings were as follows: Gains (losses) recognized in Other comprehensive (loss) income Three Months Ended 9/30/2021 9/30/2020 Commodity purchase derivative contracts $ — $ 1 Foreign exchange derivative contracts 1 (1) Interest rate derivative contracts 3 3 Total $ 4 $ 3 Location of gains (losses) reclassified from Accumulated other comprehensive net (loss) income into Net earnings Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings Three Months Ended 9/30/2021 9/30/2020 Commodity purchase derivative contracts Cost of products sold $ 5 $ (1) Foreign exchange derivative contracts Cost of products sold — — Interest rate derivative contracts Interest expense (2) (2) Total $ 3 $ (3) The estimated amount of the existing net gain (loss) in Accumulated other comprehensive net (loss) income as of September 30, 2021, that is expected to be reclassified into Net earnings (losses) within the next twelve months is $7. Counterparty Risk Management and Derivative Contract Requirements The Company utilizes a variety of financial institutions as counterparties for over-the-counter derivative instruments. The Company enters into agreements governing the use of over-the-counter derivative instruments and sets internal limits on the aggregate over-the-counter derivative instrument positions held with each counterparty. Certain terms of these agreements require the Company or the counterparty to post collateral when the fair value of the derivative instruments exceeds contractually-defined counterparty liability position limits. Of the over-the-counter derivative instruments in liability positions held as of both September 30, 2021 and June 30, 2021, $0 contained such terms. As of September 30, 2021 and June 30, 2021, neither the Company nor any counterparty was required to post any collateral, as no counterparty liability position limits were exceeded. Certain terms of the agreements governing the Company’s over-the-counter derivative instruments require the credit ratings, as assigned by Standard & Poor’s and Moody’s to the Company and its counterparties, to remain at a level equal to or better than the minimum of an investment grade credit rating. If the Company’s credit ratings were to fall below investment grade, the counterparties to the derivative instruments could request full collateralization on derivative instruments in net liability positions. As of both September 30, 2021 and June 30, 2021, the Company and each of its counterparties had been assigned investment grade ratings by both Standard & Poor’s and Moody’s. Certain of the Company’s exchange-traded futures contracts used for commodity price risk management include requirements for the Company to post collateral in the form of a cash margin account held by the Company’s broker for trades conducted on that exchange. As of September 30, 2021 and June 30, 2021, the Company maintained cash margin balances related to exchange-traded futures contracts of $2 and $0, respectively, which are classified as Prepaid expenses and other current assets on the condensed consolidated balance sheets. Trust Assets The Company holds interests in mutual funds and cash equivalents as part of trust assets related to its nonqualified deferred compensation plans. The participants in the nonqualified deferred compensation plans, who are the Company’s current and former employees, may select among certain mutual funds in which their compensation deferrals are invested in accordance with the terms of the plans and within the confines of the trusts, which hold the marketable securities. The trusts represent variable interest entities for which the Company is considered the primary beneficiary, and, therefore, trust assets are consolidated and included in Other assets in the condensed consolidated balance sheets. The interests in mutual funds are measured at fair value using quoted market prices. The Company has designated these marketable securities as trading investments. Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of September 30, 2021 and June 30, 2021, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. All of the Company’s derivative instruments qualify for hedge accounting. The following table provides information about the balance sheet classification and the fair values of the Company’s derivative instruments: 9/30/2021 6/30/2021 Balance Sheet Fair Value Carrying Estimated Carrying Estimated Assets Commodity purchase futures contracts Prepaid expenses and other current assets 1 $ 1 $ 1 $ 5 $ 5 Commodity purchase swaps contracts Prepaid expenses and other current assets 2 4 4 4 4 Foreign exchange forward contracts Prepaid expenses and other current assets 2 2 2 — — Interest rate contracts Prepaid expenses and other current assets 2 26 26 24 24 $ 33 $ 33 $ 33 $ 33 The following table provides information about the balance sheet classification and the fair values of the Company’s other assets and liabilities for which disclosure of fair value is required: 9/30/2021 6/30/2021 Balance Sheet Fair Value Carrying Estimated Carrying Estimated Assets Interest-bearing investments, including money market funds Cash and cash equivalents (1) 1 $ 98 $ 98 $ 196 $ 196 Time deposits Cash and cash equivalents (1) 2 1 1 11 11 Trust assets for nonqualified deferred compensation plans Other assets 1 142 142 136 136 $ 241 $ 241 $ 343 $ 343 Liabilities Notes and loans payable Notes and loans payable (2) 2 $ 86 $ 86 $ — $ — Current maturities of long-term debt and Long-term debt Current maturities of long- term debt and Long-term debt (3) 2 2,784 2,943 2,784 2,963 $ 2,870 $ 3,029 $ 2,784 $ 2,963 (1) Cash and cash equivalents are composed of time deposits and other interest-bearing investments, including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value. (2) Notes and loans payable are composed of outstanding U.S. commercial paper balances, which are recorded at cost, which approximates fair value. (3) Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of Long-term debt, including current maturities, was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESIn determining its quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The effective tax rate on earnings was 22.6% and 20.7% for the three months ended September 30, 2021, and 2020, respectively. The lower effective tax rate in the prior period was primarily due to the non-taxable portion of the remeasurement gain recognized on the previously held equity interest in the Saudi joint venture. |
NET EARNINGS PER SHARE (EPS)
NET EARNINGS PER SHARE (EPS) | 3 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET EARNINGS PER SHARE (EPS) | NET EARNINGS PER SHARE (EPS) The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS: Three Months Ended 9/30/2021 9/30/2020 Basic 122,980 126,346 Dilutive effect of stock options and other 1,062 2,383 Diluted 124,042 128,729 Antidilutive stock options and other 1,068 441 Basic net earnings per share and Diluted net earnings per share are calculated on Net earnings attributable to Clorox. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 3 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME The following table provides a summary of Comprehensive income for the periods indicated: Three Months Ended 9/30/2021 9/30/2020 Net earnings $ 143 $ 417 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments (23) 10 Net unrealized gains (losses) on derivatives 1 5 Pension and postretirement benefit adjustments 1 2 Total other comprehensive (loss) income, net of tax (21) 17 Comprehensive income 122 434 Less: Total comprehensive income attributable to noncontrolling interests 1 2 Total comprehensive income attributable to Clorox $ 121 $ 432 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS ’ EQUITY Changes in the components of Stockholders’ equity were as follows for the periods indicated: Three Months Ended September 30 (Dollars in millions except per share data; shares in thousands) Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Non-controlling interests Total Stockholders’ Equity Amount Shares Amount Shares Balance as of June 30, 2020 $ 159 158,741 $ 1,137 $ 3,567 $ (3,315) (32,543) $ (640) $ — $ 908 Net earnings — — — 415 — — — 2 417 Other comprehensive (loss) income — — — — — — 17 — 17 Dividends to Clorox stockholders ($1.11 per share declared) — — — (141) — — — — (141) Dividends to non-controlling interests — — — — — — — (4) (4) Business combinations including purchase accounting adjustments — — — — — — — 198 198 Stock-based compensation — — 13 — — — — — 13 Other employee stock plan activities — — (4) (1) 8 283 — — 3 Treasury stock purchased — — — — (100) (444) — — (100) Balance as of September 30, 2020 $ 159 158,741 $ 1,146 $ 3,840 $ (3,407) (32,704) $ (623) $ 196 $ 1,311 Balance as of June 30, 2021 $ 131 130,741 $ 1,186 $ 1,036 $ (1,396) (7,961) $ (546) $ 181 $ 592 Net earnings — — — 142 — — — 1 143 Other comprehensive (loss) income — — — — — — (21) — (21) Dividends to Clorox stockholders ($1.16 per share declared) — — — (143) — — — — (143) Dividends to non-controlling interests — — — — — — — (3) (3) Stock-based compensation — — 9 — — — — — 9 Other employee stock plan activities — — (29) (8) 32 228 — — (5) Treasury stock purchased — — — — (25) (152) — — (25) Balance as of September 30, 2021 $ 131 130,741 $ 1,166 $ 1,027 $ (1,389) (7,885) $ (567) $ 179 $ 547 Changes in Accumulated other comprehensive net (loss) income attributable to Clorox by component were as follows for the periods indicated: Three Months Ended September 30 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of June 30, 2020 $ (450) $ (18) $ (172) $ (640) Other comprehensive (loss) income before reclassifications 9 3 — 12 Amounts reclassified from Accumulated other comprehensive net (loss) income — 3 2 5 Income tax benefit (expense) 1 (1) — — Net current period other comprehensive (loss) income 10 5 2 17 Balance as of September 30, 2020 $ (440) $ (13) $ (170) $ (623) Balance as of June 30, 2021 $ (403) $ 21 $ (164) $ (546) Other comprehensive (loss) income before reclassifications (22) 4 — (18) Amounts reclassified from Accumulated other comprehensive net (loss) income — (3) 2 (1) Income tax benefit (expense), and other (1) — (1) (2) Net current period other comprehensive (loss) income (23) 1 1 (21) Balance as of September 30, 2021 $ (426) $ 22 $ (163) $ (567) Included in foreign currency translation adjustments are remeasurement losses on long-term intercompany loans where settlement is not planned or anticipated in the foreseeable future. There were no amounts associated with these loans reclassified from Accumulated other comprehensive net (loss) income for the periods presented. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The following table summarizes the components of net periodic benefit cost for the Company’s retirement income plans: Three Months Ended 9/30/2021 9/30/2020 Service cost $ — $ — Interest cost 4 4 Expected return on plan assets (1) (4) (4) Amortization of unrecognized items 2 3 Total $ 2 $ 3 (1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2022 net periodic benefit cost is 3.0%. The net periodic benefit cost for the Company’s retirement health care plans was $0 for both the three months ended September 30, 2021 and 2020. During the three months ended September 30, 2021 and 2020, the Company made $3 and $2 in contributions to its domestic retirement income plans, respectively. Service cost component of the net periodic benefit cost, if any, is reflected in employee benefit costs, all other components are reflected in Other (income) expense, net. |
OTHER CONTINGENCIES AND GUARANT
OTHER CONTINGENCIES AND GUARANTEES | 3 Months Ended |
Sep. 30, 2021 | |
OTHER CONTINGENCIES AND GUARANTEES [Abstract] | |
OTHER CONTINGENCIES AND GUARANTEES | OTHER CONTINGENCIES AND GUARANTEES Contingencies The Company is involved in certain environmental matters, including response actions at various locations. The Company had recorded liabilities totaling $28 as of both September 30, 2021 and June 30, 2021, for its share of aggregate future remediation costs related to these matters. One matter, which accounted for $14 of the recorded liability as of both September 30, 2021 and June 30, 2021, relates to environmental costs associated with one of the Company’s former operations at a site located in Alameda County, California. In November 2016, at the request of regulators and with the assistance of environmental consultants, the Company submitted a Feasibility Study that evaluated various options for managing the site and included estimates of the related costs. As a result, the Company recorded in Other (income) expense, net an undiscounted liability for costs estimated to be incurred over a 30-year period, based on the option recommended in the Feasibility Study. However, as a result of ongoing discussions with regulators, in June 2017, the Company increased its recorded liability to $14, which reflects anticipated costs to implement additional remediation measures at this site. While the Company believes its latest estimate is reasonable, regulators could require the Company to implement one of the other options evaluated in the Feasibility Study, with estimated undiscounted costs of up to $28 over an estimated 30-year period, or require the Company to take other actions and incur costs not included in the study. Another matter in Dickinson County, Michigan, at the site of one of the Company’s former operations for which the Company is jointly and severally liable, accounted for $10 of the recorded liability, as of September 30, 2021 and June 30, 2021. This amount reflects the Company’s agreement to be liable for 24.3% of the aggregate remediation and associated costs for this matter pursuant to a cost-sharing arrangement with a third party. If the third party is unable to pay its share of the response and remediation obligations, the Company may be responsible for such obligations. With the assistance of environmental consultants, the Company maintains an undiscounted liability representing its current best estimate of its share of the capital expenditures, maintenance and other costs that may be incurred over an estimated 30-year remediation period. Although it is reasonably possible that the Company’s exposure may exceed the amount recorded for the Dickinson County matter, any amount of such additional exposures, or range of exposures, is not estimable at this time. The Company’s estimated losses related to these matters are sensitive to a variety of uncertain factors, including the efficacy of any remediation efforts, changes in any remediation requirements and the future availability of alternative clean-up technologies. The Company is subject to various legal proceedings, claims and other loss contingencies, including, without limitation, loss contingencies relating to contractual arrangements, product liability, patents and trademarks, advertising, labor and employment, environmental, health and safety and other matters. With respect to these proceedings, claims and other loss contingencies, while considerable uncertainty exists, in the opinion of management at this time, the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, either individually or in the aggregate, on the Company’s condensed consolidated financial statements taken as a whole. Guarantees In conjunction with divestitures and other transactions, the Company may provide typical indemnifications (e.g., indemnifications for representations and warranties and retention of previously existing environmental, tax and employee liabilities) that have terms that vary in duration and in the potential amount of the total obligation and, in many circumstances, are not explicitly defined. The Company has not made, nor does it believe that it is probable that it will make, any material payments relating to its indemnifications, and believes that any reasonably possible payments would not have a material adverse effect, either individually or in the aggregate, on the Company’s condensed consolidated financial statements taken as a whole. The Company had not recorded any material liabilities on the aforementioned guarantees as of September 30, 2021 and June 30, 2021. As of September 30, 2021, the Company was party to a letter of credit of $14, related to one of its insurance carriers, of which $0 had been drawn upon. |
SEGMENT RESULTS
SEGMENT RESULTS | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT RESULTS | SEGMENT RESULTS The Company operates through strategic business units (SBUs) that are also the Company’s operating segments. The SBUs are then aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, operating lease right-of-use assets, other long-term assets and deferred taxes. The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated net sales and earnings before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate. Net sales Three Months Ended 9/30/2021 9/30/2020 Health and Wellness $ 745 $ 813 Household 442 500 Lifestyle 331 318 International 288 285 Corporate — — Total $ 1,806 $ 1,916 Earnings (losses) before income taxes Three Months Ended 9/30/2021 9/30/2020 Health and Wellness $ 105 $ 251 Household 36 109 Lifestyle 93 102 International 30 124 Corporate (79) (60) Total $ 185 $ 526 All intersegment sales are eliminated and are not included in the Company’s reportable segments’ net sales. Net sales to the Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, as a percentage of consolidated net sales, were 25% for the three months ended September 30, 2021, and 2020. The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by SBU, for the periods indicated: Net sales Three Months Ended 9/30/2021 9/30/2020 Cleaning 33 % 29 % Professional Products 5 % 9 % Vitamins, Minerals and Supplements 3 % 4 % Health and Wellness 41 % 42 % Bags and Wraps 12 % 11 % Cat Litter 7 % 6 % Grilling 6 % 9 % Household 25 % 26 % Food Products 9 % 9 % Natural Personal Care 4 % 4 % Water Filtration 5 % 4 % Lifestyle 18 % 17 % International 16 % 15 % Total 100 % 100 % |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements for the three months ended September 30, 2021 and 2020, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its controlled subsidiaries (the Company) for the periods presented. However, the financial results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The information in this report should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2021, which includes a complete set of footnote disclosures, including the Company’s significant accounting policies. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, “Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes,” which removes certain exceptions to the general principles in ASC 740 and amends existing guidance to improve consistent application. Certain amendments must be applied prospectively, certain amendments must be applied on a retrospective basis, and certain amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings. The Company adopted this standard as of July 1, 2021. The adoption of this new standard did not have a material impact on the Company’s condensed consolidated financial statements. |
Fair Value Measurement | Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of September 30, 2021 and June 30, 2021, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. |
Segment Results | The Company operates through strategic business units (SBUs) that are also the Company’s operating segments. The SBUs are then aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, operating lease right-of-use assets, other long-term assets and deferred taxes. |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net, consisted of the following as of: 9/30/2021 6/30/2021 Finished goods $ 594 $ 543 Raw materials and packaging 220 229 Work in process 13 11 LIFO allowances (42) (31) Total $ 785 $ 752 |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
Effects of Derivative Instruments Designated as Hedging Instruments on OCI | The effects of derivative instruments designated as hedging instruments on Other comprehensive (loss) income and Net earnings were as follows: Gains (losses) recognized in Other comprehensive (loss) income Three Months Ended 9/30/2021 9/30/2020 Commodity purchase derivative contracts $ — $ 1 Foreign exchange derivative contracts 1 (1) Interest rate derivative contracts 3 3 Total $ 4 $ 3 |
Effects of Derivative Instruments Designated as Hedging Instruments on Net Earnings | Location of gains (losses) reclassified from Accumulated other comprehensive net (loss) income into Net earnings Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings Three Months Ended 9/30/2021 9/30/2020 Commodity purchase derivative contracts Cost of products sold $ 5 $ (1) Foreign exchange derivative contracts Cost of products sold — — Interest rate derivative contracts Interest expense (2) (2) Total $ 3 $ (3) |
Schedule of Assets and Liabilities for Fair Value Disclosure | The following table provides information about the balance sheet classification and the fair values of the Company’s derivative instruments: 9/30/2021 6/30/2021 Balance Sheet Fair Value Carrying Estimated Carrying Estimated Assets Commodity purchase futures contracts Prepaid expenses and other current assets 1 $ 1 $ 1 $ 5 $ 5 Commodity purchase swaps contracts Prepaid expenses and other current assets 2 4 4 4 4 Foreign exchange forward contracts Prepaid expenses and other current assets 2 2 2 — — Interest rate contracts Prepaid expenses and other current assets 2 26 26 24 24 $ 33 $ 33 $ 33 $ 33 The following table provides information about the balance sheet classification and the fair values of the Company’s other assets and liabilities for which disclosure of fair value is required: 9/30/2021 6/30/2021 Balance Sheet Fair Value Carrying Estimated Carrying Estimated Assets Interest-bearing investments, including money market funds Cash and cash equivalents (1) 1 $ 98 $ 98 $ 196 $ 196 Time deposits Cash and cash equivalents (1) 2 1 1 11 11 Trust assets for nonqualified deferred compensation plans Other assets 1 142 142 136 136 $ 241 $ 241 $ 343 $ 343 Liabilities Notes and loans payable Notes and loans payable (2) 2 $ 86 $ 86 $ — $ — Current maturities of long-term debt and Long-term debt Current maturities of long- term debt and Long-term debt (3) 2 2,784 2,943 2,784 2,963 $ 2,870 $ 3,029 $ 2,784 $ 2,963 (1) Cash and cash equivalents are composed of time deposits and other interest-bearing investments, including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value. (2) Notes and loans payable are composed of outstanding U.S. commercial paper balances, which are recorded at cost, which approximates fair value. (3) Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of Long-term debt, including current maturities, was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2. |
NET EARNINGS PER SHARE (EPS) (T
NET EARNINGS PER SHARE (EPS) (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares Outstanding and Antidilutive Shares | The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS: Three Months Ended 9/30/2021 9/30/2020 Basic 122,980 126,346 Dilutive effect of stock options and other 1,062 2,383 Diluted 124,042 128,729 Antidilutive stock options and other 1,068 441 |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Comprehensive Income | The following table provides a summary of Comprehensive income for the periods indicated: Three Months Ended 9/30/2021 9/30/2020 Net earnings $ 143 $ 417 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments (23) 10 Net unrealized gains (losses) on derivatives 1 5 Pension and postretirement benefit adjustments 1 2 Total other comprehensive (loss) income, net of tax (21) 17 Comprehensive income 122 434 Less: Total comprehensive income attributable to noncontrolling interests 1 2 Total comprehensive income attributable to Clorox $ 121 $ 432 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in the components of Stockholders’ equity were as follows for the periods indicated: Three Months Ended September 30 (Dollars in millions except per share data; shares in thousands) Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Non-controlling interests Total Stockholders’ Equity Amount Shares Amount Shares Balance as of June 30, 2020 $ 159 158,741 $ 1,137 $ 3,567 $ (3,315) (32,543) $ (640) $ — $ 908 Net earnings — — — 415 — — — 2 417 Other comprehensive (loss) income — — — — — — 17 — 17 Dividends to Clorox stockholders ($1.11 per share declared) — — — (141) — — — — (141) Dividends to non-controlling interests — — — — — — — (4) (4) Business combinations including purchase accounting adjustments — — — — — — — 198 198 Stock-based compensation — — 13 — — — — — 13 Other employee stock plan activities — — (4) (1) 8 283 — — 3 Treasury stock purchased — — — — (100) (444) — — (100) Balance as of September 30, 2020 $ 159 158,741 $ 1,146 $ 3,840 $ (3,407) (32,704) $ (623) $ 196 $ 1,311 Balance as of June 30, 2021 $ 131 130,741 $ 1,186 $ 1,036 $ (1,396) (7,961) $ (546) $ 181 $ 592 Net earnings — — — 142 — — — 1 143 Other comprehensive (loss) income — — — — — — (21) — (21) Dividends to Clorox stockholders ($1.16 per share declared) — — — (143) — — — — (143) Dividends to non-controlling interests — — — — — — — (3) (3) Stock-based compensation — — 9 — — — — — 9 Other employee stock plan activities — — (29) (8) 32 228 — — (5) Treasury stock purchased — — — — (25) (152) — — (25) Balance as of September 30, 2021 $ 131 130,741 $ 1,166 $ 1,027 $ (1,389) (7,885) $ (567) $ 179 $ 547 |
Schedule of Changes in Accumulated Other Comprehensive Net (Losses) Income | Changes in Accumulated other comprehensive net (loss) income attributable to Clorox by component were as follows for the periods indicated: Three Months Ended September 30 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of June 30, 2020 $ (450) $ (18) $ (172) $ (640) Other comprehensive (loss) income before reclassifications 9 3 — 12 Amounts reclassified from Accumulated other comprehensive net (loss) income — 3 2 5 Income tax benefit (expense) 1 (1) — — Net current period other comprehensive (loss) income 10 5 2 17 Balance as of September 30, 2020 $ (440) $ (13) $ (170) $ (623) Balance as of June 30, 2021 $ (403) $ 21 $ (164) $ (546) Other comprehensive (loss) income before reclassifications (22) 4 — (18) Amounts reclassified from Accumulated other comprehensive net (loss) income — (3) 2 (1) Income tax benefit (expense), and other (1) — (1) (2) Net current period other comprehensive (loss) income (23) 1 1 (21) Balance as of September 30, 2021 $ (426) $ 22 $ (163) $ (567) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The following table summarizes the components of net periodic benefit cost for the Company’s retirement income plans: Three Months Ended 9/30/2021 9/30/2020 Service cost $ — $ — Interest cost 4 4 Expected return on plan assets (1) (4) (4) Amortization of unrecognized items 2 3 Total $ 2 $ 3 (1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2022 net periodic benefit cost is 3.0%. |
SEGMENT RESULTS (Tables)
SEGMENT RESULTS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Selected Financial Information Relating to the Company's Segments | The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated net sales and earnings before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate. Net sales Three Months Ended 9/30/2021 9/30/2020 Health and Wellness $ 745 $ 813 Household 442 500 Lifestyle 331 318 International 288 285 Corporate — — Total $ 1,806 $ 1,916 Earnings (losses) before income taxes Three Months Ended 9/30/2021 9/30/2020 Health and Wellness $ 105 $ 251 Household 36 109 Lifestyle 93 102 International 30 124 Corporate (79) (60) Total $ 185 $ 526 The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by SBU, for the periods indicated: Net sales Three Months Ended 9/30/2021 9/30/2020 Cleaning 33 % 29 % Professional Products 5 % 9 % Vitamins, Minerals and Supplements 3 % 4 % Health and Wellness 41 % 42 % Bags and Wraps 12 % 11 % Cat Litter 7 % 6 % Grilling 6 % 9 % Household 25 % 26 % Food Products 9 % 9 % Natural Personal Care 4 % 4 % Water Filtration 5 % 4 % Lifestyle 18 % 17 % International 16 % 15 % Total 100 % 100 % |
BUSINESS ACQUIRED (Narrative) (
BUSINESS ACQUIRED (Narrative) (Details) $ in Millions | Jul. 09, 2020USD ($)entity | Sep. 30, 2020USD ($) |
Joint Venture In Kingdom Of Saudi Arabia | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Non-recurring, non-cash gain | $ 85 | |
Purchase consideration | $ 111 | |
Cash paid | 100 | |
Loss on settlement | 11 | |
Fair value of net assets acquired | 412 | |
Fair value of non-controlling interest acquired | $ 198 | |
Joint Venture In Kingdom Of Saudi Arabia | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Noncontrolling interest, ownership percentage by parent | 51.00% | |
Joint Venture In Kingdom Of Saudi Arabia | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Equity method investment, ownership percentage | 30.00% | |
Joint Venture In Kingdom Of Saudi Arabia | Joint Venture In Kingdom Of Saudi Arabia | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Number of entities in joint venture | entity | 2 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 594 | $ 543 |
Raw materials and packaging | 220 | 229 |
Work in process | 13 | 11 |
LIFO allowances | (42) | (31) |
Total | $ 785 | $ 752 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Derivative [Line Items] | ||
Maximum duration, foreign exchange contracts (in years) | 2 years | |
Estimated amount of the existing net gain (loss) to be reclassified into earnings in the next 12 months | $ 7,000,000 | |
Derivative instruments subject to contractually defined counterparty liability position limits | 0 | $ 0 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 300,000,000 | 300,000,000 |
Maximum duration, interest rate contracts (in years) | 3 years | |
Purchases of Inventory | Foreign exchange derivative contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 50,000,000 | 70,000,000 |
Total Commodity Purchase Derivative Contracts | ||
Derivative [Line Items] | ||
Maximum duration, commodity contracts (in years) | 2 years | |
Notional amount | $ 35,000,000 | 32,000,000 |
Soybean Oil Futures | ||
Derivative [Line Items] | ||
Notional amount | 24,000,000 | 23,000,000 |
Soybean Oil Futures | Commodity contract | ||
Derivative [Line Items] | ||
Cash margin balances amount | 2,000,000 | 0 |
Jet Fuel Swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 11,000,000 | $ 9,000,000 |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of the Effects of Derivative Instruments Designated as Hedging Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Other comprehensive (loss) income | $ 4 | $ 3 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 3 | (3) |
Commodity contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Other comprehensive (loss) income | 0 | 1 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 5 | (1) |
Foreign exchange derivative contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Other comprehensive (loss) income | 1 | (1) |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 0 | 0 |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Other comprehensive (loss) income | 3 | 3 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | $ (2) | $ (2) |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities for Fair Value Disclosure) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 210 | $ 319 |
Total assets | 6,274 | 6,334 |
Notes and loans payable | 86 | 0 |
Total liabilities | 5,727 | 5,742 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 33 | 33 |
Total assets | 241 | 343 |
Total liabilities | 2,870 | 2,784 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 33 | 33 |
Total other assets in the fair value hierarchy | 241 | 343 |
Total other liabilities in the fair value hierarchy | 3,029 | 2,963 |
Prepaid expenses and other current assets | Fair Value, Inputs, Level 1 | Carrying Amount | Commodity contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 5 |
Prepaid expenses and other current assets | Fair Value, Inputs, Level 1 | Estimated Fair Value | Commodity contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 5 |
Prepaid expenses and other current assets | Fair Value, Inputs, Level 2 | Carrying Amount | Commodity contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | 4 |
Prepaid expenses and other current assets | Fair Value, Inputs, Level 2 | Carrying Amount | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 0 |
Prepaid expenses and other current assets | Fair Value, Inputs, Level 2 | Carrying Amount | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 26 | 24 |
Prepaid expenses and other current assets | Fair Value, Inputs, Level 2 | Estimated Fair Value | Commodity contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | 4 |
Prepaid expenses and other current assets | Fair Value, Inputs, Level 2 | Estimated Fair Value | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 0 |
Prepaid expenses and other current assets | Fair Value, Inputs, Level 2 | Estimated Fair Value | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 26 | 24 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | Carrying Amount | Interest-bearing investments, including money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 98 | 196 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | Estimated Fair Value | Interest-bearing investments, including money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 98 | 196 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 | Carrying Amount | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1 | 11 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 | Estimated Fair Value | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1 | 11 |
Other assets | Trust assets for nonqualified deferred compensation plans | Fair Value, Inputs, Level 1 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trust assets for nonqualified deferred compensation plans | 142 | 136 |
Other assets | Trust assets for nonqualified deferred compensation plans | Fair Value, Inputs, Level 1 | Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trust assets for nonqualified deferred compensation plans | 142 | 136 |
Short-term Debt | Fair Value, Inputs, Level 2 | Carrying Amount | NotesAndLoansPayableMember | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans payable | 86 | 0 |
Short-term Debt | Fair Value, Inputs, Level 2 | Estimated Fair Value | NotesAndLoansPayableMember | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt, fair value | 86 | 0 |
Current maturities of long-term debt and Long-term debt | Fair Value, Inputs, Level 2 | Carrying Amount | Long-term Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current maturities of long-term debt and Long-term debt | 2,784 | 2,784 |
Current maturities of long-term debt and Long-term debt | Fair Value, Inputs, Level 2 | Estimated Fair Value | Long-term Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current maturities of long-term debt and Long-term debt | $ 2,943 | $ 2,963 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate on earnings from continuing operations | 22.60% | 20.70% |
NET EARNINGS PER SHARE (EPS) (S
NET EARNINGS PER SHARE (EPS) (Schedule of Weighted Average Number of Shares) (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Basic (in shares) | 122,980 | 126,346 |
Dilutive effect of stock options and other (in shares) | 1,062 | 2,383 |
Diluted (in shares) | 124,042 | 128,729 |
Antidilutive stock options and other (in shares) | 1,068 | 441 |
COMPREHENSIVE INCOME (Schedule
COMPREHENSIVE INCOME (Schedule of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | ||
Net earnings | $ 143 | $ 417 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation adjustments | (23) | 10 |
Net unrealized gains (losses) on derivatives | 1 | 5 |
Pension and postretirement benefit adjustments | 1 | 2 |
Total other comprehensive (loss) income, net of tax | (21) | 17 |
Comprehensive income | 122 | 434 |
Less: Total comprehensive income attributable to noncontrolling interests | 1 | 2 |
Total comprehensive income attributable to Clorox | $ 121 | $ 432 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Equity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | ||
Dividends declared per share (in dollars per share) | $ 1.16 | $ 1.11 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | $ 592 | $ 908 |
Net earnings | 143 | 417 |
Other comprehensive (loss) income | (21) | 17 |
Dividends | (143) | (141) |
Dividends to non-controlling interests | (3) | (4) |
Business combinations including purchase accounting adjustments | 198 | |
Stock-based compensation | 9 | 13 |
Other employee stock plan activities | (5) | 3 |
Treasury stock purchased | (25) | (100) |
Balance, ending | 547 | 1,311 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | $ 131 | $ 159 |
Balance, beginning (in shares) | 130,741 | 158,741 |
Balance, ending | $ 131 | $ 159 |
Balance, ending (in shares) | 130,741 | 158,741 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | $ 1,186 | $ 1,137 |
Stock-based compensation | 9 | 13 |
Other employee stock plan activities | (29) | (4) |
Balance, ending | 1,166 | 1,146 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | 1,036 | 3,567 |
Net earnings | 142 | 415 |
Dividends | (143) | (141) |
Other employee stock plan activities | (8) | (1) |
Balance, ending | 1,027 | 3,840 |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | $ (1,396) | $ (3,315) |
Balance, beginning (in shares) | 7,961 | 32,543 |
Other employee stock plan activities | $ 32 | $ 8 |
Other employee stock plan activities (in shares) | 228 | 283 |
Treasury stock purchased | $ (25) | $ (100) |
Treasury stock purchased (in shares) | (152) | (444) |
Balance, ending | $ (1,389) | $ (3,407) |
Balance, ending (in shares) | 7,885 | 32,704 |
Accumulated Other Comprehensive Net (Loss) Income | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | $ (546) | $ (640) |
Other comprehensive (loss) income | (21) | 17 |
Balance, ending | (567) | (623) |
Non-controlling interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance, beginning | 181 | 0 |
Net earnings | 1 | 2 |
Dividends to non-controlling interests | (3) | (4) |
Business combinations including purchase accounting adjustments | 198 | |
Balance, ending | $ 179 | $ 196 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive net (loss) income | $ 1,000,000 | $ (5,000,000) |
Long-Term Inter-Company Loans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive net (loss) income | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of Changes in Accumulated Other Comprehensive Net (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | $ 411 | |
Other comprehensive (loss) income before reclassifications | (18) | $ 12 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | (1) | 5 |
Income tax benefit (expense) | (2) | 0 |
Net current period other comprehensive (loss) income | (21) | 17 |
Balance, ending | 368 | |
Foreign currency translation adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | (403) | (450) |
Other comprehensive (loss) income before reclassifications | (22) | 9 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 0 | 0 |
Income tax benefit (expense) | (1) | 1 |
Net current period other comprehensive (loss) income | (23) | 10 |
Balance, ending | (426) | (440) |
Net unrealized gains (losses) on derivatives | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | 21 | (18) |
Other comprehensive (loss) income before reclassifications | 4 | 3 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | (3) | 3 |
Income tax benefit (expense) | 0 | (1) |
Net current period other comprehensive (loss) income | 1 | 5 |
Balance, ending | 22 | (13) |
Pension and postretirement benefit adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | (164) | (172) |
Other comprehensive (loss) income before reclassifications | 0 | 0 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 2 | 2 |
Income tax benefit (expense) | (1) | 0 |
Net current period other comprehensive (loss) income | 1 | 2 |
Balance, ending | (163) | (170) |
Accumulated Other Comprehensive Net (Loss) Income | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | (546) | (640) |
Balance, ending | $ (567) | $ (623) |
EMPLOYEE BENEFIT PLANS (Compone
EMPLOYEE BENEFIT PLANS (Components of the Net Cost of Retirement Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | $ 0 | $ 0 |
Weighted average long-term expected rate or return on plan assets | 3.00% | |
Other Postretirement Benefits Plan | Retirement Income Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | 0 |
Interest cost | 4 | 4 |
Expected return on plan assets | (4) | (4) |
Amortization of unrecognized items | 2 | 3 |
Total | $ 2 | $ 3 |
EMPLOYEE BENEFIT PLANS (Narrati
EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost (benefit) | $ 0 | $ 0 |
Retirement Income Plans | UNITED STATES | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discretionary contributions | $ 3 | $ 2 |
OTHER CONTINGENCIES AND GUARA_2
OTHER CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2017 | |
Loss Contingencies [Line Items] | |||
Liability for aggregate future remediation costs | $ 28 | $ 28 | |
Letter of credit | 14 | ||
Letter of credit, amount outstanding | 0 | ||
Alameda County, California Matter | |||
Loss Contingencies [Line Items] | |||
Liability for aggregate future remediation costs | $ 14 | 14 | $ 14 |
Remediation period (in years) | 30 years | ||
Maximum undiscounted costs | $ 28 | ||
Dickinson County, Michigan Matter | |||
Loss Contingencies [Line Items] | |||
Liability for aggregate future remediation costs | $ 10 | $ 10 | |
Remediation period (in years) | 30 years | ||
Percentage of liability for aggregate remediation and associated costs, other than legal fees | 24.30% |
SEGMENT RESULTS (Narrative) (De
SEGMENT RESULTS (Narrative) (Details) - reportableSegment | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Concentration Risk [Line Items] | ||
Number of reportable segments | 4 | |
Revenue from Contract with Customer | Customer Concentration Risk | Walmart Stores, Inc. | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 25.00% | 25.00% |
SEGMENT RESULTS (Selected Finan
SEGMENT RESULTS (Selected Financial Information Relating To Company's Segments ) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,806 | $ 1,916 |
Earnings (losses) before income taxes | $ 185 | $ 526 |
Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 100.00% | 100.00% |
Health and Wellness | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 41.00% | 42.00% |
Health and Wellness | Cleaning | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 33.00% | 29.00% |
Health and Wellness | Professional Products | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 5.00% | 9.00% |
Health and Wellness | Vitamins, Minerals and Supplements | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 3.00% | 4.00% |
Household | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 25.00% | 26.00% |
Household | Bags and Wraps | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 12.00% | 11.00% |
Household | Cat Litter | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 7.00% | 6.00% |
Household | Grilling | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 6.00% | 9.00% |
Lifestyle | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 18.00% | 17.00% |
Lifestyle | Food Products | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 9.00% | 9.00% |
Lifestyle | Natural Personal Care | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 4.00% | 4.00% |
Lifestyle | Water Filtration | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 5.00% | 4.00% |
International | Product Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Concentration percentage | 16.00% | 15.00% |
Operating Segments | Health and Wellness | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 745 | $ 813 |
Earnings (losses) before income taxes | 105 | 251 |
Operating Segments | Household | ||
Segment Reporting Information [Line Items] | ||
Net sales | 442 | 500 |
Earnings (losses) before income taxes | 36 | 109 |
Operating Segments | Lifestyle | ||
Segment Reporting Information [Line Items] | ||
Net sales | 331 | 318 |
Earnings (losses) before income taxes | 93 | 102 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Net sales | 288 | 285 |
Earnings (losses) before income taxes | 30 | 124 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Earnings (losses) before income taxes | $ (79) | $ (60) |