Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2024 | Apr. 16, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 - $1.00 par value | |
Trading Symbol | CLX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 124,188,188 | |
Entity Central Index Key | 0000021076 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,814 | $ 1,915 | $ 5,190 | $ 5,370 |
Cost of products sold | 1,048 | 1,115 | 3,026 | 3,324 |
Gross profit | 766 | 800 | 2,164 | 2,046 |
Selling and administrative expenses | 301 | 311 | 899 | 854 |
Advertising costs | 215 | 206 | 566 | 523 |
Research and development costs | 32 | 35 | 93 | 100 |
Loss on divestiture | 240 | 0 | 240 | 0 |
Pension settlement charge | 0 | 0 | 171 | 0 |
Goodwill, trademark and other asset impairments | 0 | 445 | 0 | 445 |
Interest expense | 22 | 24 | 69 | 69 |
Other (income) expense, net | (2) | 24 | 3 | 54 |
Earnings (losses) before income taxes | (42) | (245) | 123 | 1 |
Income tax expense (benefit) | 8 | (36) | 52 | 21 |
Net earnings (losses) | (50) | (209) | 71 | (20) |
Less: Net earnings attributable to noncontrolling interests | 1 | 2 | 7 | 7 |
Net earnings (losses) attributable to Clorox | $ (51) | $ (211) | $ 64 | $ (27) |
Net earnings (losses) per share attributable to Clorox | ||||
Basic net earnings (losses) per share (in dollars per share) | $ (0.41) | $ (1.71) | $ 0.52 | $ (0.22) |
Diluted net earnings (losses) per share (in dollars per share) | $ (0.41) | $ (1.71) | $ 0.52 | $ (0.22) |
Weighted average shares outstanding (in thousands) | ||||
Basic (in shares) | 124,249 | 123,649 | 124,133 | 123,512 |
Diluted (in shares) | 124,249 | 123,649 | 124,721 | 123,512 |
Comprehensive income (loss) | $ 154 | $ (205) | $ 409 | $ (39) |
Less: Total comprehensive income attributable to noncontrolling interests | 1 | 2 | 7 | 7 |
Total comprehensive income (loss) attributable to Clorox | $ 153 | $ (207) | $ 402 | $ (46) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 219 | $ 367 |
Receivables, net | 673 | 688 |
Inventories, net | 674 | 696 |
Prepaid expenses and other current assets | 95 | 77 |
Total current assets | 1,661 | 1,828 |
Property, plant and equipment, net of accumulated depreciation and amortization of $2,800 and $2,705, respectively | 1,292 | 1,345 |
Operating lease right-of-use assets | 379 | 346 |
Goodwill | 1,229 | 1,252 |
Trademarks, net | 539 | 543 |
Other intangible assets, net | 149 | 169 |
Other assets | 556 | 462 |
Total assets | 5,805 | 5,945 |
Current liabilities | ||
Notes and loans payable | 111 | 50 |
Current operating lease liabilities | 82 | 87 |
Accounts payable and accrued liabilities | 1,653 | 1,659 |
Income taxes payable | 0 | 121 |
Total current liabilities | 1,846 | 1,917 |
Long-term debt | 2,480 | 2,477 |
Long-term operating lease liabilities | 347 | 310 |
Other liabilities | 853 | 825 |
Deferred income taxes | 24 | 28 |
Total liabilities | 5,550 | 5,557 |
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 March 31, 2024 and June 30, 2023; and 124,186,844 and 123,820,022 shares outstanding as of March 31, 2024 and June 30, 2023, respectively | 131 | 131 |
Additional paid-in capital | 1,270 | 1,245 |
Retained earnings | 34 | 583 |
Treasury stock, at cost: 6,554,617 and 6,921,439 shares as of March 31, 2024 and June 30, 2023, respectively | (1,189) | (1,246) |
Accumulated other comprehensive net (loss) income | (155) | (493) |
Total Clorox stockholders’ equity | 91 | 220 |
Noncontrolling interests | 164 | 168 |
Total stockholders’ equity | 255 | 388 |
Total liabilities and stockholders’ equity | $ 5,805 | $ 5,945 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation and amortization | $ 2,800 | $ 2,705 |
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) | 124,186,844 | 123,820,022 |
Treasury stock (in shares) | 6,554,617 | 6,921,439 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities: | ||
Net earnings (losses) | $ 71 | $ (20) |
Adjustments to reconcile net earnings (losses) to net cash provided by operations: | ||
Depreciation and amortization | 176 | 174 |
Stock-based compensation | 55 | 60 |
Deferred income taxes | (126) | (122) |
Loss on divestiture | 238 | 0 |
Pension settlement charge | 171 | 0 |
Goodwill, trademark and other asset impairments | 0 | 445 |
Other | 18 | 34 |
Changes in: | ||
Receivables, net | (16) | (1) |
Inventories, net | 20 | 13 |
Prepaid expenses and other current assets | 12 | (15) |
Accounts payable and accrued liabilities | (120) | 78 |
Operating lease right-of-use assets and liabilities, net | 0 | 2 |
Income taxes payable / prepaid | (144) | 80 |
Net cash provided by operations | 355 | 728 |
Investing activities: | ||
Capital expenditures | (131) | (144) |
Proceeds from divestiture, net of cash divested | 17 | 0 |
Other | 20 | 2 |
Net cash used for investing activities | (94) | (142) |
Financing activities: | ||
Notes and loans payable, net | 61 | (99) |
Cash dividends paid to Clorox stockholders | (446) | (437) |
Issuance of common stock for employee stock plans and other | 3 | 10 |
Net cash used for financing activities | (382) | (526) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (26) | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (147) | 60 |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 368 | 186 |
End of period | $ 221 | $ 246 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2024 | |
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 and nine months ended March 31, 2024 and 2023, in the opinion of management, reflect all normal and recurring adjustments considered 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 or Clorox) 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, 2023, which includes a complete set of footnote disclosures, including the Company’s significant accounting policies. Recently Issued Accounting Standards Recently Issued Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” These amendments primarily require enhanced disclosures and disaggregation of income tax information by jurisdiction in the annual income tax reconciliation and quantitative and qualitative disclosures regarding income taxes paid. These amendments are to be applied prospectively, with the option to apply the standard retrospectively, for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” These amendments primarily require enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. These amendments are to be applied retrospectively for all periods presented in the financial statements and are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. Recently Adopted Accounting Standards In September 2022, the FASB issued ASU No. 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” These amendments require disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. These amendments are effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted the standard as of July 1, 2023. The adoption relates to disclosures only and does not have an impact on the condensed consolidated financial statements, results of operations, or cash flows. |
DIVESTITURE OF ARGENTINA BUSINE
DIVESTITURE OF ARGENTINA BUSINESS | 9 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURE OF ARGENTINA BUSINESS | DIVESTITURE OF ARGENTINA BUSINESS On March 20, 2024, the Company completed the sale of its Argentina business, which consisted of two production plants in Argentina as well as the rights to the Company’s brands in Argentina, Uruguay and Paraguay, to Apex Capital and an investment group. The transaction is in support of the Company’s IGNITE strategy and the commitment to evolve the Company’s portfolio to increase focus on its core business to drive more consistent, profitable growth. The transaction was executed pursuant to a stock purchase agreement, which covered all the outstanding stock of the Clorox Argentina S.A. and Clorox Uruguay S.A. As a result of the transaction, the Company recorded a pre-tax loss of $240 during the three and nine months ended March 31, 2024 primarily due to the one-time noncash impact of the release of the cumulative translation adjustment losses of $223 related to these entities that had previously been recorded in Accumulated other comprehensive net (loss) income. The major classes of assets and liabilities of the Argentina business divested as of March 20, 2024 were as follows: Divestiture Working capital, net $ 31 Property, plant and equipment, net 18 Goodwill (1) 16 Other assets 3 Other liabilities (3) Net assets divested $ 65 (1) Goodwill corresponding to the International reportable segment. The following table presents Net sales of the Argentina business which includes the financial results up to March 20, 2024, the date of sale: Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Net sales $ 43 $ 46 $ 123 $ 127 The divestiture of the Company’s Argentina business does not meet the criteria to be reported as discontinued operations in the condensed consolidated financial statements as the Company’s decision to divest this business did not represent a strategic shift that will have a major effect on the Company’s operations and financial results. |
CYBERATTACK
CYBERATTACK | 9 Months Ended |
Mar. 31, 2024 | |
Unusual or Infrequent Items, or Both [Abstract] | |
CYBERATTACK | CYBERATTACK On Monday, August 14, 2023, the Company disclosed it had identified unauthorized activity on some of its Information Technology (IT) systems. That activity began on Friday, August 11, 2023 and after becoming aware of it that evening, the Company immediately began taking steps to stop and remediate the activity. The Company also took certain systems offline and engaged third-party cybersecurity experts to support its investigation and recovery efforts. The Company implemented its business continuity plans, including manual ordering and processing procedures at a reduced rate of operations in order to continue servicing its customers. However, the incident resulted in wide-scale disruptions to the Company’s business operations throughout the remainder of the quarter ended September 30, 2023. The impacts of these system disruptions included order processing delays and significant product outages, resulting in a negative impact on net sales and earnings. The Company has since transitioned back to automated order processing. The Company experienced lessening operational impacts in the second quarter and has since returned to substantially normalized operations. The Company also incurred incrementa l expenses of approximately $8 and $57 as a result of the cyberattack for the three and nine months ended March 31, 2024, respectively. The following table summarizes the recognition of costs in the condensed consolidated statements of earnings and comprehensive income: Three months ended Nine months ended 3/31/2024 3/31/2024 Costs of products sold $ 1 $ 21 Selling and administrative expenses 7 36 Total $ 8 $ 57 The costs incurred relate primarily to third-party consulting services, including IT recovery and forensic experts and other professional services incurred to investigate and remediate the attack, as well as incremental operating costs incurred from the resulting disruption to the Company’s business operations. The Company expects to incur lessening costs related to the cyberattack in future periods. The Company has not recognized any insurance proceeds in the three and nine months ended March 31, 2024 related to the cyberattack. The timing of recognizing insurance recoveries, if any, may differ from the timing of recognizing the associated expenses. |
SUPPLY CHAIN FINANCING PROGRAM
SUPPLY CHAIN FINANCING PROGRAM | 9 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
SUPPLY CHAIN FINANCING PROGRAM | SUPPLY CHAIN FINANCING PROGRAM The Company has arranged for a global financial institution to offer a voluntary supply chain finance (SCF) program for the benefit of the Company’s suppliers. The Company’s current payment terms do not exceed 120 days in keeping with industry standards. The SCF program enables suppliers to directly contract with the financial institution to receive payment from the financial institution prior to the payment terms between the Company and the supplier by selling the Company’s payables to the financial institution. Participation in the program is at the sole discretion of the supplier and the Company has no economic interest in a supplier's decision to enter into the agreement and has no direct financial relationship with the financial institution, as it relates to the SCF program. Once a supplier elects to participate in the SCF program and reaches an agreement with the financial institution, the supplier elects which individual Company invoices to sell to the financial institution. The terms of the Company’s payment obligations are not impacted by a supplier’s participation in the program and as such, the SCF program has no direct impact on the Company’s balance sheets, cash flows or liquidity. The Company has not pledged any assets as security or provided guarantees under the SCF program. Accounts payable and accrued liabilities |
RESTRUCTURING AND RELATED COSTS
RESTRUCTURING AND RELATED COSTS | 9 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND RELATED COSTS | RESTRUCTURING AND RELATED COSTS In the first quarter of fiscal year 2023, the Company began recognizing costs related to a plan that involves streamlining its operating model to meet its objectives of driving growth and productivity. The streamlined operating model is expected to enhance the Company’s ability to respond more quickly to changing consumer behaviors and innovate faster. The Company anticipates the implementation of this new model will be completed in fiscal year 2024, with different phases occurring throughout the implementation period. The Company incurred $60 of costs in fiscal year 2023 and anticipates incurring approximately $30 to $40 of costs in fiscal year 2024 related to this initiative, of which approximately $10 to $20 are expected to be employee-related costs to reduce certain staffing levels such as severance payments, with the remainder for consulting and other costs. Costs incurred are expected to be settled primarily in cash. The total restructuring and related implementation costs, net associated with the Company’s streamlined operating model as reflected in the condensed consolidated statements of earnings and comprehensive income: Three months ended Nine months ended Inception to date ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 3/31/2024 Costs of products sold $ — $ — $ — $ (1) $ (3) Selling and administrative expenses 5 6 8 11 20 Research and development — — — — (1) Other (income) expense, net: Employee-related costs 5 15 5 34 57 Total, net $ 10 $ 21 $ 13 $ 44 $ 73 Employee-related costs primarily include severance and other termination benefits calculated based on salary levels, prior service and statutory requirements. Other costs primarily include consulting fees incurred for the organizational design and implementation of the streamlined operating model, related processes and other professional fees incurred. The Company may, from time to time, decide to pursue additional restructuring-related initiatives that involve costs in future periods. The following table reconciles the accrual for the streamlined operating model’s restructuring and related implementation costs discussed above, which are recorded within Accounts payable and accrued liabilities in the condensed consolidated balance sheets: Employee-Related Costs Other Total Accrual Balance as of June 30, 2023 $ 23 $ 5 $ 28 Charges 5 9 14 Cash payments (20) (9) (29) Accrual Balance as of March 31, 2024 $ 8 $ 5 $ 13 |
INVENTORIES, NET
INVENTORIES, NET | 9 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories, net consisted of the following as of: 3/31/2024 6/30/2023 Finished goods $ 588 $ 595 Raw materials and packaging 179 182 Work in process 12 8 LIFO allowances (104) (87) Total inventories, net $ 675 $ 698 Less: Non-current inventories, net (1) 1 2 Total current inventories, net $ 674 $ 696 (1) Non-current inventories, net are recorded in Other assets. |
GOODWILL, TRADEMARKS AND OTHER
GOODWILL, TRADEMARKS AND OTHER ASSETS IMPAIRMENTS | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, TRADEMARKS AND OTHER ASSETS IMPAIRMENTS | GOODWILL, TRADEMARKS AND OTHER ASSETS IMPAIRMENTS The Company tests its goodwill and other indefinite-lived intangible assets for impairment annually in the fiscal fourth quarter unless there are indications during a different interim period that these assets may have become impaired. Finite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances occur that indicate that the carrying value of an asset (or asset group) may not be recoverable. There were no impairment charges for goodwill or intangible assets recorded by the Company during the three and nine months ended March 31, 2024. Fiscal Year 2023 Impairment During the third quarter of fiscal year 2023, management made a decision to narrow the focus on core brands and streamline investment levels in the Vitamins, Minerals and Supplements (VMS) business. As a result, revisions were made to the internal financial projections and operational plans of the VMS business reflecting the Company’s current estimates regarding the future financial performance of these operations and macroeconomic factors. The revised estimated future cash flows reflect lower sales growth expectations and lower investment levels. These revisions were considered a triggering event requiring interim impairment assessments to be performed as part of the preparation of the quar terly financial statements on the global indefinite-lived trademarks, other long-term assets and the VMS reporting unit. Based on the outcome of these assessments, the following pre-tax, noncash impairment charges were recorded: Impairment Charges VMS reporting unit International reporting unit Total Goodwill $ 306 $ — $ 306 Trademarks, net 127 12 139 Total $ 433 $ 12 $ 445 In connection with recognizing these impairment charges, the Company recognized tax benefits related to the impairments of $83 due to the partial tax deductibility of these charges. 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, 2023 for further information related to the VMS reporting unit goodwill and trademark impairments. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 9 Months Ended |
Mar. 31, 2024 | |
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 futures, options and swap contracts to limit the impact of price volatility on a portion of its forecasted raw material requirements. These commodity derivatives may be exchange traded or over-the-counter contracts and generally have original contractual maturities of less than 2 years. Commodity purchase and options contracts are measured at fair value using market quotations obtained from the Chicago Board of Trade commodity futures exchange and commodity derivative dealers. The notional amounts of outstanding commodity derivatives, which related primarily to exposures in soybean oil used for the food business and jet fuel used for the grilling business, were $44 and $41 as of March 31, 2024 and June 30, 2023, respectively. 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 original contractual maturities of less 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 $38 and $51 as of March 31, 2024 and June 30, 2023, respectively. 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 original contractual maturities of less than 3 years. The interest rate contracts are measured at fair value using information quoted by bond dealers. The Company held no interest rate contracts as of both March 31, 2024 and June 30, 2023. Commodity, Foreign Exchange and Interest Rate Derivatives The Company designates its commodity forward, futures and options 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 (losses) were as follows: Gains (losses) recognized in Other comprehensive (loss) income Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Commodity purchase derivative contracts $ — $ (4) $ (5) $ (6) Foreign exchange derivative contracts 2 1 1 1 Total $ 2 $ (3) $ (4) $ (5) 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 Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Commodity purchase derivative contracts Cost of products sold $ (2) $ — $ (4) $ 7 Foreign exchange derivative contracts Cost of products sold — — — 1 Interest rate derivative contracts Interest expense 4 4 10 10 Total $ 2 $ 4 $ 6 $ 18 The estimated amount of the existing net gain (loss) in Accumulated other comprehensive net (loss) income as of March 31, 2024 that is expected to be reclassified into Net earnings (losses) within the next twelve months is $10. 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, $0 and $1 contained such terms as of March 31, 2024 and June 30, 2023, respectively. As of both March 31, 2024 and June 30, 2023, 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 Company’s 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 March 31, 2024 and June 30, 2023, 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 and options 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 March 31, 2024 and June 30, 2023, the Company maintained cash margin balances related to exchange traded futures and options contracts of $1 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 gains and losses on the trust assets are recorded in Other (income) expense, net in the condensed consolidated statements of earnings. 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 both March 31, 2024 and June 30, 2023, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the period 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: 3/31/2024 6/30/2023 Balance sheet Fair value Carrying Estimated Carrying Estimated Assets Commodity purchase options contracts Prepaid expenses and other current assets 1 $ — $ — $ 2 $ 2 Commodity purchase swaps contracts Prepaid expenses and other current assets 2 1 1 — — Foreign exchange forward contracts Prepaid expenses and other current assets 2 1 1 — — $ 2 $ 2 $ 2 $ 2 Liabilities Commodity purchase futures contracts Accounts payable and accrued liabilities 1 — — — — Commodity purchase swaps contracts Accounts payable and accrued liabilities 2 — — 1 1 $ — $ — $ 1 $ 1 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: 3/31/2024 6/30/2023 Balance sheet Fair value Carrying Estimated Carrying Estimated Assets Interest-bearing investments, including money market funds Cash and cash equivalents (1) 1 $ 76 $ 76 $ 243 $ 243 Time deposits Cash and cash equivalents (1) 2 13 13 9 9 Trust assets for nonqualified deferred compensation plans Other assets 1 151 151 129 129 $ 240 $ 240 $ 381 $ 381 Liabilities Notes and loans payable Notes and loans payable (2) 2 $ 111 $ 111 $ 50 $ 50 Current maturities of long-term debt and Long-term debt Current maturities of long- term debt and Long-term debt (3) 2 2,480 2,356 2,477 2,327 $ 2,591 $ 2,467 $ 2,527 $ 2,377 (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 and/or amounts drawn on the Company’s credit agreements, all of 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. |
OTHER (INCOME) EXPENSE, NET
OTHER (INCOME) EXPENSE, NET | 9 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | OTHER (INCOME) EXPENSE, NET The major components of Other (income) expense, net were: Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Amortization of trademarks and other intangible assets $ 7 $ 8 $ 22 $ 22 Trust investment (gains) losses, net (8) (7) (18) (8) Net periodic benefit cost 1 4 11 12 Foreign exchange transaction (gains) losses, net (1) 1 4 24 7 Income from equity investees (1) (1) (3) (3) Interest income (4) (4) (21) (9) Restructuring costs (2) 5 15 5 34 Gain on sale-leaseback transaction (3) — — (16) — Other (3) 5 (1) (1) Total $ (2) $ 24 $ 3 $ 54 (1) Foreign exchange losses were primarily related to the Company’s operations in Argentina. (2) Restructuring costs related to the implementation of the Company's streamlined operating model. See Note 5 for additional details. (3) On December 14, 2023, the Company completed an asset sale-leaseback transaction on a warehouse in Fairfield, California. The Company received proceeds of $19, net of selling costs, the asset had a carrying value of $3, and the transaction resulted in a $16 gain which was recognized in Other (income) expense, net in the Health and Wellness segment. The leaseback is accounted for as an operating lease. The term of the lease is 8 years, with options to extend the lease for two 5 year periods. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In 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 losses was (18.6)% and the effective tax rate on earnings was 41.9% for the three and nine months ended March 31, 2024, respectively, and the effective tax rate on losses was 14.7% and the effective tax rate on earnings was 1813.5% for the three and nine months ended March 31, 2023, respectively. The lower tax rate on losses in the current three month period was primarily driven by the divestiture of the Argentina business and an international legal entity reorganization, partially offset by the non-deductibility of impaired VMS goodwill in the prior period. The substantially higher tax rate on earnings before income taxes in the prior nine month period was driven by lower pre-tax income due to VMS impairment charges and the non-deductibility of a portion of those charges, partially offset by the divestiture of the Argentina business in the current period. Income taxes paid, net of refunds, were $314 and $61 for the nine months ended March 31, 2024 and March 31, 2023, respectively. The increase in payments in the current period was primarily driven by income tax payments for fiscal years 2023 and 2024 that were previously deferred as a result of tax relief provided by the IRS due to winter storms in California. |
NET EARNINGS (LOSSES) PER SHARE
NET EARNINGS (LOSSES) PER SHARE (EPS) | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
NET EARNINGS (LOSSES) PER SHARE (EPS) | NET EARNINGS (LOSSES) 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 Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Basic 124,249 123,649 124,133 123,512 Dilutive effect of stock options and other — — 588 — Diluted 124,249 123,649 124,721 123,512 Antidilutive stock options and other 4,758 4,953 2,720 4,953 Basic net earnings (losses) per share and Diluted net earnings (losses) per share are calculated on Net earnings (losses) attributable to Clorox. Since the Company generated net losses attributable to Clorox for the three months ended March 31, 2024 and the three and nine months ended March 31, 2023, there was no dilutive effect of stock options and other instruments during these periods because their impacts would be antidilutive. |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) The following table provides a summary of Comprehensive income (loss) for the periods indicated: Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Net earnings (losses) $ (50) $ (209) $ 71 $ (20) Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments 206 10 212 (1) Net unrealized gains (losses) on derivatives (1) (7) (10) (21) Pension and postretirement benefit adjustments (1) 1 136 3 Total other comprehensive (loss) income, net of tax 204 4 338 (19) Comprehensive income (loss) 154 (205) 409 (39) Less: Total comprehensive income attributable to noncontrolling interests 1 2 7 7 Total comprehensive income (loss) attributable to Clorox $ 153 $ (207) $ 402 $ (46) |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS ’ EQUITY Changes in the components of Stockholders’ equity were as follows for the periods indicated: Three months ended March 31 (Dollars in millions except per share data; shares in thousands) Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated Noncontrolling interests Total stockholders’ equity Amount Shares Amount Shares Balance as of December 31, 2022 $ 131 130,741 $ 1,207 $ 782 $ (1,297) (7,263) $ (502) $ 170 $ 491 Net earnings (losses) — — — (211) — — — 2 (209) Other comprehensive (loss) income — — — — — — 4 — 4 Dividends to Clorox stockholders ($1.18 per share declared) — — — (147) — — — — (147) Dividends to noncontrolling interests — — — — — — — (3) (3) Stock-based compensation — — 29 — — — — — 29 Other employee stock plan activities — — (4) (9) 20 133 — — 7 Balance as of March 31, 2023 $ 131 130,741 $ 1,232 $ 415 $ (1,277) (7,130) $ (498) $ 169 $ 172 Balance as of December 31, 2023 $ 131 130,741 $ 1,245 $ 241 $ (1,205) (6,661) $ (359) $ 165 $ 218 Net earnings (losses) — — — (51) — — — 1 (50) Other comprehensive (loss) income — — — — — — 204 — 204 Dividends to Clorox stockholders ($1.20 per share declared) — — — (150) — — — — (150) Dividends to noncontrolling interests — — — — — — — (2) (2) Stock-based compensation — — 26 — — — — — 26 Other employee stock plan activities — — (1) (6) 16 106 — — 9 Balance as of March 31, 2024 $ 131 130,741 $ 1,270 $ 34 $ (1,189) (6,555) $ (155) $ 164 $ 255 Nine months ended March 31 (Dollars in millions except per share data; shares in thousands) Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive net (loss) income Noncontrolling interests Total stockholders’ equity Amount Shares Amount Shares Balance as of June 30, 2022 $ 131 130,741 $ 1,202 $ 1,048 $ (1,346) (7,589) $ (479) $ 173 $ 729 Net earnings (losses) — — — (27) — — — 7 (20) Other comprehensive (loss) income — — — — — — (19) — (19) Dividends to Clorox stockholders ($4.72 per share declared) — — — (587) — — — — (587) Dividends to noncontrolling interests — — — — — — — (11) (11) Stock-based compensation — — 60 — — — — — 60 Other employee stock plan activities — — (30) (19) 69 459 — — 20 Balance as of March 31, 2023 $ 131 130,741 $ 1,232 $ 415 $ (1,277) (7,130) $ (498) $ 169 $ 172 Balance as of June 30, 2023 $ 131 130,741 $ 1,245 $ 583 $ (1,246) (6,921) $ (493) $ 168 $ 388 Net earnings — — — 64 — — — 7 71 Other comprehensive (loss) income — — — — — — 338 — 338 Dividends to Clorox stockholders ($4.80 per share declared) — — — (600) — — — — (600) Dividends to noncontrolling interests — — — — — — — (11) (11) Stock-based compensation — — 55 — — — — — 55 Other employee stock plan activities — — (30) (13) 57 366 — — 14 Balance as of March 31, 2024 $ 131 130,741 $ 1,270 $ 34 $ (1,189) (6,555) $ (155) $ 164 $ 255 Changes in Accumulated other comprehensive net (loss) income attributable to Clorox by component were as follows for the periods indicated: Three months ended March 31 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of December 31, 2022 $ (459) $ 107 $ (150) $ (502) Other comprehensive (loss) income before reclassifications 9 (3) — 6 Amounts reclassified from Accumulated other comprehensive net (loss) income — (4) 1 (3) Income tax benefit (expense) 1 — — 1 Net current period other comprehensive (loss) income 10 (7) 1 4 Balance as of March 31, 2023 $ (449) $ 100 $ (149) $ (498) Balance as of December 31, 2023 $ (439) $ 90 $ (10) $ (359) Other comprehensive (loss) income before reclassifications (16) 2 — (14) Amounts reclassified from Accumulated other comprehensive net (loss) income (1) 223 (2) — 221 Income tax benefit (expense), and other (1) (1) (1) (3) Net current period other comprehensive (loss) income 206 (1) (1) 204 Balance as of March 31, 2024 $ (233) $ 89 $ (11) $ (155) Nine months ended March 31 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, 2022 $ (448) $ 121 $ (152) $ (479) Other comprehensive (loss) income before reclassifications (2) (5) — (7) Amounts reclassified from Accumulated other comprehensive net (loss) income — (18) 4 (14) Income tax benefit (expense) 1 2 (1) 2 Net current period other comprehensive (loss) income (1) (21) 3 (19) Balance as of March 31, 2023 $ (449) $ 100 $ (149) $ (498) Balance as of June 30, 2023 $ (445) $ 99 $ (147) $ (493) Other comprehensive (loss) income before reclassifications (10) (4) 4 (10) Amounts reclassified from Accumulated other comprehensive net (loss) income (1) (2) 223 (6) 175 392 Income tax benefit (expense), and other (1) — (43) (44) Net current period other comprehensive (loss) income 212 (10) 136 338 Balance as of March 31, 2024 $ (233) $ 89 $ (11) $ (155) (1) Includes the release of currency translation adjustment from the Argentina business divestiture. See Note 2 for additional details. (2) Includes recognition of pension settlement charge reclassified into Net earnings (losses). See Note 14 for additional details. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS In the second quarter of fiscal year 2024, the Company settled plan benefits of its domestic qualified pension plan (the Plan), through a combination of an annuity contract purchase with a third-party insurance provider and lump sum payouts. These payments were made using Plan assets. The third-party insurance provider assumed the obligation to pay future pension benefits and provide administrative services and started making direct payments to participants in January 2024. In conjunction with this settlement, a one-time noncash charge, net of curtailment gain, of $171 before taxes ($130 after tax) was recorded in the Company’s condensed consolidated statement of earnings and comprehensive income primarily as a result of accelerating the recognition of actuarial losses previously included in Accumulated other comprehensive net (loss) income that would have been recognized in future periods. In the third quarter of fiscal year 2024, following settlement, remaining excess Plan assets of $19 have been contributed to the Company’s domestic defined contribution plans. The Company continues to maintain various other retirement income plans for eligible domestic and international employees. The following table summarizes the components of net periodic benefit cost for the Company’s retirement income plans: Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Interest cost $ 2 $ 4 $ 10 $ 13 Expected return on plan assets (1) — (3) (2) (8) Amortization of unrecognized items — 3 3 7 Curtailment gain — — (6) — Settlement loss — — 178 — Total $ 2 $ 4 $ 183 $ 12 (1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2024 net periodic benefit cost is 3.3%. The net periodic benefit cost (credit) for the Company’s retirement health care plans was ($1) for both the three and nine months ended March 31, 2024 and March 31, 2023. During both the three months ended March 31, 2024 and 2023, the Company made $8 in contributions to its domestic retirement income plans. During both the nine months ended March 2024 and 2023, the Company made $12 in contributions to its domestic retirement income plans. 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 | 9 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [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 recorded liabilities totaling $28 as of both March 31, 2024 and June 30, 2023 for its share of aggregate future remediation costs related to these matters. One matter, which accounted for $12 of the recorded liability as of both March 31, 2024 and June 30, 2023, 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 groundwater at the site and included estimates of the related costs. Following further discussions with the regulators in 2017, the Company recorded an undiscounted liability for costs estimated to be incurred over a 30-year period, based on one of the options in the Feasibility Study related to groundwater. In September 2021, as a result of an additional study and further discussions with regulators, the Company submitted a Soil Vapor Intrusion Report to the regulators. In January 2023, the regulators issued a new order directing the Company and the current property owner to conduct a Remedial Investigation and then prepare a Feasibility Study to evaluate and remediate impacts to soil, soil vapor and indoor air. While the Company believes its latest estimates of remediation costs (including any related to soil, soil vapor and indoor air impacts) are reasonable, the ultimate remediation requirements are not yet finalized and the regulators could require the Company to implement remediation actions for a longer period or take additional actions, which could include estimated undiscounted costs in the aggregate of up to approximately $28 over an estimated 30-year period, or require the Company to take different actions and incur additional costs. 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 both March 31, 2024 and June 30, 2023. 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 agreement 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. From time to time, the Company is subject to various legal proceedings, claims and other loss contingencies, including, without limitation, loss contingencies relating to contractual arrangements (including costs connected to the transition and unwinding of certain supply and manufacturing relationships), 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 both March 31, 2024 and June 30, 2023. The Company was a party to letters of credit of $18 as of March 31, 2024, primarily related to its insurance carriers, of which $0 had been drawn upon. |
SEGMENT RESULTS
SEGMENT RESULTS | 9 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT RESULTS | SEGMENT RESULTS The Company operates through strategic business units (SBUs) which are organized into operating segments. Operating segments are then aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Operating segments not aggregated into a reportable segment are reflected in Corporate and Other. Corporate and Other includes certain non-allocated administrative costs and various other non-operating income and expenses, as well as the results of the Vitamins, Minerals and Supplements (VMS) business. Assets in Corporate and Other 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, as well as the assets related to the VMS business. The principle measure of segment profitability used by management is segment adjusted earnings (losses) before interest and income taxes (segment adjusted EBIT). Segment adjusted EBIT is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as the pension settlement charge, incremental charges relating to the cyberattack, asset impairments, charges related to the streamlined operating model, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions / divestitures and other nonrecurring or unusual items impacting comparability). The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated net sales and earnings (losses) before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate and Other. Net sales Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Health and Wellness $ 609 $ 647 $ 1,833 $ 1,881 Household 526 550 1,353 1,435 Lifestyle 315 353 947 1,005 International 310 305 891 876 Corporate and Other 54 60 166 173 Total $ 1,814 $ 1,915 $ 5,190 $ 5,370 Segment adjusted EBIT Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Health and Wellness $ 154 $ 161 $ 517 $ 418 Household 74 99 162 165 Lifestyle 64 83 192 217 International 38 27 104 74 Corporate and Other (70) (101) (238) (251) Total $ 260 $ 269 $ 737 $ 623 Interest income 4 4 21 9 Interest expense (22) (24) (69) (69) Loss on divestiture (1) (240) — (240) — Pension settlement charge (2) — — (171) — Cyberattack costs (3) (8) — (57) — VMS impairment (4) — (445) — (445) Streamlined operating model (5) (10) (21) (13) (44) Digital capabilities and productivity enhancements investment (6) (26) (28) (85) (73) Earnings (losses) before income taxes $ (42) $ (245) $ 123 $ 1 (1) Represents loss on divestiture of the Argentina business corresponding to International. See Note 2 for additional details related to the divestiture. (2) Represents costs related to the settlement of the domestic qualified pension plan corresponding to Corporate and Other. See Note 14 for additional details relating to the pension settlement. (3) Represents incremental costs related to the cyberattack of $8 and $57 for the three and nine months ended March 31, 2024, respectively. See Note 3 for additional details relating to the cyberattack. For informational purposes, the following table provides the approximate cyberattack costs corresponding to the Company’s reportable segments as a percentage of total costs: Three months ended Nine months ended 3/31/2024 3/31/2024 Health and Wellness 18 % 15 % Household 12 11 Lifestyle — 11 International — 4 Corporate and Other 70 59 Total 100 % 100 % (4) Represents noncash impairment charge of $445 related to the VMS business recorded in both the three and nine months ended March 31, 2023. See Note 7 for additional details relating to the impairment. (5) Represents restructuring and related implementation costs, net for the streamlined operating model of $10 and $13 for the three and nine months ended March 31, 2024, respectively and $21 and $44 for the three and nine months ended March 31, 2023, respectively. For informational purposes, the following table provides the approximate restructuring and related implementation costs, net corresponding to the Company’s reportable segments as a percentage of the total costs: Three months ended Nine months ended Inception to date ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 3/31/2024 Health and Wellness 4 % 7 % 4 % 6 % 5 % Household — 4 — 2 1 Lifestyle — 2 — 3 3 International — 21 — 19 13 Corporate and Other 96 66 96 70 78 Total 100 % 100 % 100 % 100 % 100 % (6) Represents expenses related to the Company’s digital capabilities and productivity enhancements investment corresponding to Corporate and Other. All intersegment sales are eliminated and are not included in the Company’s reportable segments’ net sales. Net sales to the Company’s largest customer, Walmart Inc. and its affiliates, as a percentage of consolidated net sales, were 25% for both the three and nine months ended March 31, 2024 and 26% for both the three and nine months ended March 31, 2023. The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by operating segment, for the periods indicated: Net sales Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Cleaning 29 % 30 % 30 % 30 % Professional Products 5 4 5 5 Health and Wellness 34 % 34 % 35 % 35 % Bags and Wraps 12 12 12 12 Cat Litter 8 9 9 9 Grilling 9 8 6 6 Household 29 % 29 % 27 % 27 % Food 10 10 10 11 Natural Personal Care 3 4 4 4 Water Filtration 4 4 4 4 Lifestyle 17 % 18 % 18 % 19 % International 17 % 16 % 17 % 16 % Corporate and Other 3 % 3 % 3 % 3 % Total 100 % 100 % 100 % 100 % |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (51) | $ (211) | $ 64 | $ (27) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements for the three and nine months ended March 31, 2024 and 2023, in the opinion of management, reflect all normal and recurring adjustments considered 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 or Clorox) 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, 2023, which includes a complete set of footnote disclosures, including the Company’s significant accounting policies. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Issued Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” These amendments primarily require enhanced disclosures and disaggregation of income tax information by jurisdiction in the annual income tax reconciliation and quantitative and qualitative disclosures regarding income taxes paid. These amendments are to be applied prospectively, with the option to apply the standard retrospectively, for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” These amendments primarily require enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. These amendments are to be applied retrospectively for all periods presented in the financial statements and are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on the Company’s disclosures. Recently Adopted Accounting Standards In September 2022, the FASB issued ASU No. 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” These amendments require disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. These amendments are effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted the standard as of July 1, 2023. The adoption relates to disclosures only and does not have an impact on the condensed consolidated financial statements, results of operations, or cash flows. |
Fair Value of Financial Instruments | 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 both March 31, 2024 and June 30, 2023, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the period 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) which are organized into operating segments. Operating segments are then aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Operating segments not aggregated into a reportable segment are reflected in Corporate and Other. Corporate and Other includes certain non-allocated administrative costs and various other non-operating income and expenses, as well as the results of the Vitamins, Minerals and Supplements (VMS) business. Assets in Corporate and Other 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, as well as the assets related to the VMS business. The principle measure of segment profitability used by management is segment adjusted earnings (losses) before interest and income taxes (segment adjusted EBIT). Segment adjusted EBIT is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as the pension settlement charge, incremental charges relating to the cyberattack, asset impairments, charges related to the streamlined operating model, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions / divestitures and other nonrecurring or unusual items impacting comparability). |
DIVESTITURE OF ARGENTINA BUSI_2
DIVESTITURE OF ARGENTINA BUSINESS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Net Assets Divested and Net Sales of Divested Business | The major classes of assets and liabilities of the Argentina business divested as of March 20, 2024 were as follows: Divestiture Working capital, net $ 31 Property, plant and equipment, net 18 Goodwill (1) 16 Other assets 3 Other liabilities (3) Net assets divested $ 65 (1) Goodwill corresponding to the International reportable segment. The following table presents Net sales of the Argentina business which includes the financial results up to March 20, 2024, the date of sale: Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Net sales $ 43 $ 46 $ 123 $ 127 |
CYBERATTACK (Tables)
CYBERATTACK (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Summary of Costs Recognized From Cyberattack | The following table summarizes the recognition of costs in the condensed consolidated statements of earnings and comprehensive income: Three months ended Nine months ended 3/31/2024 3/31/2024 Costs of products sold $ 1 $ 21 Selling and administrative expenses 7 36 Total $ 8 $ 57 |
RESTRUCTURING AND RELATED COS_2
RESTRUCTURING AND RELATED COSTS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The total restructuring and related implementation costs, net associated with the Company’s streamlined operating model as reflected in the condensed consolidated statements of earnings and comprehensive income: Three months ended Nine months ended Inception to date ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 3/31/2024 Costs of products sold $ — $ — $ — $ (1) $ (3) Selling and administrative expenses 5 6 8 11 20 Research and development — — — — (1) Other (income) expense, net: Employee-related costs 5 15 5 34 57 Total, net $ 10 $ 21 $ 13 $ 44 $ 73 |
Schedule of Restructuring Reserve by Type of Cost | The following table reconciles the accrual for the streamlined operating model’s restructuring and related implementation costs discussed above, which are recorded within Accounts payable and accrued liabilities in the condensed consolidated balance sheets: Employee-Related Costs Other Total Accrual Balance as of June 30, 2023 $ 23 $ 5 $ 28 Charges 5 9 14 Cash payments (20) (9) (29) Accrual Balance as of March 31, 2024 $ 8 $ 5 $ 13 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net consisted of the following as of: 3/31/2024 6/30/2023 Finished goods $ 588 $ 595 Raw materials and packaging 179 182 Work in process 12 8 LIFO allowances (104) (87) Total inventories, net $ 675 $ 698 Less: Non-current inventories, net (1) 1 2 Total current inventories, net $ 674 $ 696 (1) Non-current inventories, net are recorded in Other assets. |
GOODWILL, TRADEMARKS AND OTHE_2
GOODWILL, TRADEMARKS AND OTHER ASSETS IMPAIRMENTS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Impairment Charges | Based on the outcome of these assessments, the following pre-tax, noncash impairment charges were recorded: Impairment Charges VMS reporting unit International reporting unit Total Goodwill $ 306 $ — $ 306 Trademarks, net 127 12 139 Total $ 433 $ 12 $ 445 |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 (losses) were as follows: Gains (losses) recognized in Other comprehensive (loss) income Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Commodity purchase derivative contracts $ — $ (4) $ (5) $ (6) Foreign exchange derivative contracts 2 1 1 1 Total $ 2 $ (3) $ (4) $ (5) |
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 Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Commodity purchase derivative contracts Cost of products sold $ (2) $ — $ (4) $ 7 Foreign exchange derivative contracts Cost of products sold — — — 1 Interest rate derivative contracts Interest expense 4 4 10 10 Total $ 2 $ 4 $ 6 $ 18 |
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: 3/31/2024 6/30/2023 Balance sheet Fair value Carrying Estimated Carrying Estimated Assets Commodity purchase options contracts Prepaid expenses and other current assets 1 $ — $ — $ 2 $ 2 Commodity purchase swaps contracts Prepaid expenses and other current assets 2 1 1 — — Foreign exchange forward contracts Prepaid expenses and other current assets 2 1 1 — — $ 2 $ 2 $ 2 $ 2 Liabilities Commodity purchase futures contracts Accounts payable and accrued liabilities 1 — — — — Commodity purchase swaps contracts Accounts payable and accrued liabilities 2 — — 1 1 $ — $ — $ 1 $ 1 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: 3/31/2024 6/30/2023 Balance sheet Fair value Carrying Estimated Carrying Estimated Assets Interest-bearing investments, including money market funds Cash and cash equivalents (1) 1 $ 76 $ 76 $ 243 $ 243 Time deposits Cash and cash equivalents (1) 2 13 13 9 9 Trust assets for nonqualified deferred compensation plans Other assets 1 151 151 129 129 $ 240 $ 240 $ 381 $ 381 Liabilities Notes and loans payable Notes and loans payable (2) 2 $ 111 $ 111 $ 50 $ 50 Current maturities of long-term debt and Long-term debt Current maturities of long- term debt and Long-term debt (3) 2 2,480 2,356 2,477 2,327 $ 2,591 $ 2,467 $ 2,527 $ 2,377 (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 and/or amounts drawn on the Company’s credit agreements, all of 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. |
OTHER (INCOME) EXPENSE, NET (Ta
OTHER (INCOME) EXPENSE, NET (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Major Components of Other (Income) Expense, Net | The major components of Other (income) expense, net were: Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Amortization of trademarks and other intangible assets $ 7 $ 8 $ 22 $ 22 Trust investment (gains) losses, net (8) (7) (18) (8) Net periodic benefit cost 1 4 11 12 Foreign exchange transaction (gains) losses, net (1) 1 4 24 7 Income from equity investees (1) (1) (3) (3) Interest income (4) (4) (21) (9) Restructuring costs (2) 5 15 5 34 Gain on sale-leaseback transaction (3) — — (16) — Other (3) 5 (1) (1) Total $ (2) $ 24 $ 3 $ 54 (1) Foreign exchange losses were primarily related to the Company’s operations in Argentina. (2) Restructuring costs related to the implementation of the Company's streamlined operating model. See Note 5 for additional details. (3) On December 14, 2023, the Company completed an asset sale-leaseback transaction on a warehouse in Fairfield, California. The Company received proceeds of $19, net of selling costs, the asset had a carrying value of $3, and the transaction resulted in a $16 gain which was recognized in Other (income) expense, net in the Health and Wellness segment. The leaseback is accounted for as an operating lease. The term of the lease is 8 years, with options to extend the lease for two 5 year periods. |
NET EARNINGS (LOSSES) PER SHA_2
NET EARNINGS (LOSSES) PER SHARE (EPS) (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Basic 124,249 123,649 124,133 123,512 Dilutive effect of stock options and other — — 588 — Diluted 124,249 123,649 124,721 123,512 Antidilutive stock options and other 4,758 4,953 2,720 4,953 |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Comprehensive Income | The following table provides a summary of Comprehensive income (loss) for the periods indicated: Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Net earnings (losses) $ (50) $ (209) $ 71 $ (20) Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments 206 10 212 (1) Net unrealized gains (losses) on derivatives (1) (7) (10) (21) Pension and postretirement benefit adjustments (1) 1 136 3 Total other comprehensive (loss) income, net of tax 204 4 338 (19) Comprehensive income (loss) 154 (205) 409 (39) Less: Total comprehensive income attributable to noncontrolling interests 1 2 7 7 Total comprehensive income (loss) attributable to Clorox $ 153 $ (207) $ 402 $ (46) |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in the components of Stockholders’ equity were as follows for the periods indicated: Three months ended March 31 (Dollars in millions except per share data; shares in thousands) Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated Noncontrolling interests Total stockholders’ equity Amount Shares Amount Shares Balance as of December 31, 2022 $ 131 130,741 $ 1,207 $ 782 $ (1,297) (7,263) $ (502) $ 170 $ 491 Net earnings (losses) — — — (211) — — — 2 (209) Other comprehensive (loss) income — — — — — — 4 — 4 Dividends to Clorox stockholders ($1.18 per share declared) — — — (147) — — — — (147) Dividends to noncontrolling interests — — — — — — — (3) (3) Stock-based compensation — — 29 — — — — — 29 Other employee stock plan activities — — (4) (9) 20 133 — — 7 Balance as of March 31, 2023 $ 131 130,741 $ 1,232 $ 415 $ (1,277) (7,130) $ (498) $ 169 $ 172 Balance as of December 31, 2023 $ 131 130,741 $ 1,245 $ 241 $ (1,205) (6,661) $ (359) $ 165 $ 218 Net earnings (losses) — — — (51) — — — 1 (50) Other comprehensive (loss) income — — — — — — 204 — 204 Dividends to Clorox stockholders ($1.20 per share declared) — — — (150) — — — — (150) Dividends to noncontrolling interests — — — — — — — (2) (2) Stock-based compensation — — 26 — — — — — 26 Other employee stock plan activities — — (1) (6) 16 106 — — 9 Balance as of March 31, 2024 $ 131 130,741 $ 1,270 $ 34 $ (1,189) (6,555) $ (155) $ 164 $ 255 Nine months ended March 31 (Dollars in millions except per share data; shares in thousands) Common stock Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive net (loss) income Noncontrolling interests Total stockholders’ equity Amount Shares Amount Shares Balance as of June 30, 2022 $ 131 130,741 $ 1,202 $ 1,048 $ (1,346) (7,589) $ (479) $ 173 $ 729 Net earnings (losses) — — — (27) — — — 7 (20) Other comprehensive (loss) income — — — — — — (19) — (19) Dividends to Clorox stockholders ($4.72 per share declared) — — — (587) — — — — (587) Dividends to noncontrolling interests — — — — — — — (11) (11) Stock-based compensation — — 60 — — — — — 60 Other employee stock plan activities — — (30) (19) 69 459 — — 20 Balance as of March 31, 2023 $ 131 130,741 $ 1,232 $ 415 $ (1,277) (7,130) $ (498) $ 169 $ 172 Balance as of June 30, 2023 $ 131 130,741 $ 1,245 $ 583 $ (1,246) (6,921) $ (493) $ 168 $ 388 Net earnings — — — 64 — — — 7 71 Other comprehensive (loss) income — — — — — — 338 — 338 Dividends to Clorox stockholders ($4.80 per share declared) — — — (600) — — — — (600) Dividends to noncontrolling interests — — — — — — — (11) (11) Stock-based compensation — — 55 — — — — — 55 Other employee stock plan activities — — (30) (13) 57 366 — — 14 Balance as of March 31, 2024 $ 131 130,741 $ 1,270 $ 34 $ (1,189) (6,555) $ (155) $ 164 $ 255 |
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 March 31 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of December 31, 2022 $ (459) $ 107 $ (150) $ (502) Other comprehensive (loss) income before reclassifications 9 (3) — 6 Amounts reclassified from Accumulated other comprehensive net (loss) income — (4) 1 (3) Income tax benefit (expense) 1 — — 1 Net current period other comprehensive (loss) income 10 (7) 1 4 Balance as of March 31, 2023 $ (449) $ 100 $ (149) $ (498) Balance as of December 31, 2023 $ (439) $ 90 $ (10) $ (359) Other comprehensive (loss) income before reclassifications (16) 2 — (14) Amounts reclassified from Accumulated other comprehensive net (loss) income (1) 223 (2) — 221 Income tax benefit (expense), and other (1) (1) (1) (3) Net current period other comprehensive (loss) income 206 (1) (1) 204 Balance as of March 31, 2024 $ (233) $ 89 $ (11) $ (155) Nine months ended March 31 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, 2022 $ (448) $ 121 $ (152) $ (479) Other comprehensive (loss) income before reclassifications (2) (5) — (7) Amounts reclassified from Accumulated other comprehensive net (loss) income — (18) 4 (14) Income tax benefit (expense) 1 2 (1) 2 Net current period other comprehensive (loss) income (1) (21) 3 (19) Balance as of March 31, 2023 $ (449) $ 100 $ (149) $ (498) Balance as of June 30, 2023 $ (445) $ 99 $ (147) $ (493) Other comprehensive (loss) income before reclassifications (10) (4) 4 (10) Amounts reclassified from Accumulated other comprehensive net (loss) income (1) (2) 223 (6) 175 392 Income tax benefit (expense), and other (1) — (43) (44) Net current period other comprehensive (loss) income 212 (10) 136 338 Balance as of March 31, 2024 $ (233) $ 89 $ (11) $ (155) (1) Includes the release of currency translation adjustment from the Argentina business divestiture. See Note 2 for additional details. (2) Includes recognition of pension settlement charge reclassified into Net earnings (losses). See Note 14 for additional details. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Interest cost $ 2 $ 4 $ 10 $ 13 Expected return on plan assets (1) — (3) (2) (8) Amortization of unrecognized items — 3 3 7 Curtailment gain — — (6) — Settlement loss — — 178 — Total $ 2 $ 4 $ 183 $ 12 (1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2024 net periodic benefit cost is 3.3%. |
SEGMENT RESULTS (Tables)
SEGMENT RESULTS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 (losses) before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate and Other. Net sales Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Health and Wellness $ 609 $ 647 $ 1,833 $ 1,881 Household 526 550 1,353 1,435 Lifestyle 315 353 947 1,005 International 310 305 891 876 Corporate and Other 54 60 166 173 Total $ 1,814 $ 1,915 $ 5,190 $ 5,370 Segment adjusted EBIT Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Health and Wellness $ 154 $ 161 $ 517 $ 418 Household 74 99 162 165 Lifestyle 64 83 192 217 International 38 27 104 74 Corporate and Other (70) (101) (238) (251) Total $ 260 $ 269 $ 737 $ 623 Interest income 4 4 21 9 Interest expense (22) (24) (69) (69) Loss on divestiture (1) (240) — (240) — Pension settlement charge (2) — — (171) — Cyberattack costs (3) (8) — (57) — VMS impairment (4) — (445) — (445) Streamlined operating model (5) (10) (21) (13) (44) Digital capabilities and productivity enhancements investment (6) (26) (28) (85) (73) Earnings (losses) before income taxes $ (42) $ (245) $ 123 $ 1 (1) Represents loss on divestiture of the Argentina business corresponding to International. See Note 2 for additional details related to the divestiture. (2) Represents costs related to the settlement of the domestic qualified pension plan corresponding to Corporate and Other. See Note 14 for additional details relating to the pension settlement. (3) Represents incremental costs related to the cyberattack of $8 and $57 for the three and nine months ended March 31, 2024, respectively. See Note 3 for additional details relating to the cyberattack. For informational purposes, the following table provides the approximate cyberattack costs corresponding to the Company’s reportable segments as a percentage of total costs: Three months ended Nine months ended 3/31/2024 3/31/2024 Health and Wellness 18 % 15 % Household 12 11 Lifestyle — 11 International — 4 Corporate and Other 70 59 Total 100 % 100 % (4) Represents noncash impairment charge of $445 related to the VMS business recorded in both the three and nine months ended March 31, 2023. See Note 7 for additional details relating to the impairment. (5) Represents restructuring and related implementation costs, net for the streamlined operating model of $10 and $13 for the three and nine months ended March 31, 2024, respectively and $21 and $44 for the three and nine months ended March 31, 2023, respectively. For informational purposes, the following table provides the approximate restructuring and related implementation costs, net corresponding to the Company’s reportable segments as a percentage of the total costs: Three months ended Nine months ended Inception to date ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 3/31/2024 Health and Wellness 4 % 7 % 4 % 6 % 5 % Household — 4 — 2 1 Lifestyle — 2 — 3 3 International — 21 — 19 13 Corporate and Other 96 66 96 70 78 Total 100 % 100 % 100 % 100 % 100 % (6) Represents expenses related to the Company’s digital capabilities and productivity enhancements investment corresponding to Corporate and Other. The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by operating segment, for the periods indicated: Net sales Three months ended Nine months ended 3/31/2024 3/31/2023 3/31/2024 3/31/2023 Cleaning 29 % 30 % 30 % 30 % Professional Products 5 4 5 5 Health and Wellness 34 % 34 % 35 % 35 % Bags and Wraps 12 12 12 12 Cat Litter 8 9 9 9 Grilling 9 8 6 6 Household 29 % 29 % 27 % 27 % Food 10 10 10 11 Natural Personal Care 3 4 4 4 Water Filtration 4 4 4 4 Lifestyle 17 % 18 % 18 % 19 % International 17 % 16 % 17 % 16 % Corporate and Other 3 % 3 % 3 % 3 % Total 100 % 100 % 100 % 100 % |
DIVESTITURE OF ARGENTINA BUSI_3
DIVESTITURE OF ARGENTINA BUSINESS (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 20, 2024 productionPlant | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pre-tax loss on divestiture | $ 240 | $ 0 | $ 240 | $ 0 | |
Cumulative translation adjustment losses | 223 | 223 | |||
Argentina Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of production plants disposed of | productionPlant | 2 | ||||
Pre-tax loss on divestiture | $ 240 | $ 240 |
DIVESTITURE OF ARGENTINA BUSI_4
DIVESTITURE OF ARGENTINA BUSINESS (Major Classes of Assets and Liabilities) (Details) - Argentina Business - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Millions | Mar. 20, 2024 USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Working capital, net | $ 31 |
Property, plant and equipment, net | 18 |
Goodwill | 16 |
Other assets | 3 |
Other liabilities | (3) |
Net assets divested | $ 65 |
DIVESTITURE OF ARGENTINA BUSI_5
DIVESTITURE OF ARGENTINA BUSINESS (Net Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Argentina Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | $ 43 | $ 46 | $ 123 | $ 127 |
CYBERATTACK (Narrative) (Detail
CYBERATTACK (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Incremental expenses | $ 8 | $ 0 | $ 57 | $ 0 |
Cyberattack | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Incremental expenses | 8 | 57 | ||
Insurance proceeds | $ 0 | $ 0 |
CYBERATTACK (Summary of Costs R
CYBERATTACK (Summary of Costs Recognized from Cyberattack) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total | $ 8 | $ 0 | $ 57 | $ 0 |
Cyberattack | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total | 8 | 57 | ||
Cyberattack | Costs of products sold | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total | 1 | 21 | ||
Cyberattack | Selling and administrative expenses | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Total | $ 7 | $ 36 |
SUPPLY CHAIN FINANCING PROGRAM
SUPPLY CHAIN FINANCING PROGRAM (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Supplier Finance Program [Line Items] | ||
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities |
Amount due to suppliers participating in SCF | $ 208 | $ 220 |
Maximum | ||
Supplier Finance Program [Line Items] | ||
SCF payment term | 120 days |
RESTRUCTURING AND RELATED COS_3
RESTRUCTURING AND RELATED COSTS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2024 | Jun. 30, 2024 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related implementation, incurred cost | $ 10 | $ 21 | $ 13 | $ 44 | $ 60 | $ 73 | |
Minimum | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related implementation, expected cost | $ 30 | ||||||
Minimum | Forecast | Employee-Related Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related implementation, expected cost | 10 | ||||||
Maximum | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related implementation, expected cost | 40 | ||||||
Maximum | Forecast | Employee-Related Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related implementation, expected cost | $ 20 |
RESTRUCTURING AND RELATED COS_4
RESTRUCTURING AND RELATED COSTS (Restructuring and Related Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Total, net | $ 10 | $ 21 | $ 13 | $ 44 | $ 60 | $ 73 |
Costs of products sold | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of products sold | Cost of products sold | Cost of products sold | Cost of products sold | Cost of products sold | |
Total, net | $ 0 | $ 0 | $ 0 | $ (1) | $ (3) | |
Selling and administrative expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling and administrative expenses | Selling and administrative expenses | Selling and administrative expenses | Selling and administrative expenses | Selling and administrative expenses | |
Total, net | $ 5 | $ 6 | $ 8 | $ 11 | $ 20 | |
Research and development | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Research and development costs | Research and development costs | Research and development costs | Research and development costs | Research and development costs | |
Total, net | $ 0 | $ 0 | $ 0 | $ 0 | $ (1) | |
Other (income) expense, net | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other (income) expense, net | Other (income) expense, net | Other (income) expense, net | Other (income) expense, net | Other (income) expense, net | |
Total, net | $ 5 | $ 15 | $ 5 | $ 34 | $ 57 |
RESTRUCTURING AND RELATED COS_5
RESTRUCTURING AND RELATED COSTS (Accrual Reconciliation) (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrual Balance as of June 30, 2023 | $ 28 |
Charges | 14 |
Cash payments | (29) |
Accrual Balance as of March 31, 2024 | 13 |
Employee-Related Costs | |
Restructuring Reserve [Roll Forward] | |
Accrual Balance as of June 30, 2023 | 23 |
Charges | 5 |
Cash payments | (20) |
Accrual Balance as of March 31, 2024 | 8 |
Other | |
Restructuring Reserve [Roll Forward] | |
Accrual Balance as of June 30, 2023 | 5 |
Charges | 9 |
Cash payments | (9) |
Accrual Balance as of March 31, 2024 | $ 5 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 588 | $ 595 |
Raw materials and packaging | 179 | 182 |
Work in process | 12 | 8 |
LIFO allowances | (104) | (87) |
Total inventories, net | 675 | 698 |
Less: Non-current inventories, net | 1 | 2 |
Total current inventories, net | $ 674 | $ 696 |
GOODWILL, TRADEMARKS AND OTHE_3
GOODWILL, TRADEMARKS AND OTHER ASSETS IMPAIRMENTS (Summary of Impairment Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | $ 306 | |||
Trademarks, net | 139 | |||
Total | $ 0 | 445 | $ 0 | $ 445 |
VMS reporting unit | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | 306 | |||
Trademarks, net | 127 | |||
Total | 433 | |||
International reporting unit | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | 0 | |||
Trademarks, net | 12 | |||
Total | $ 12 |
GOODWILL, TRADEMARKS AND OTHE_4
GOODWILL, TRADEMARKS AND OTHER ASSETS IMPAIRMENTS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill, trademark and other asset impairments | $ 0 | $ 445 | $ 0 | $ 445 |
Goodwill impairment charge | 306 | |||
Impairment of intangible assets | 139 | |||
Impairment tax benefit | $ 83 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2023 | |
Derivative [Line Items] | ||
Maximum duration, foreign exchange contracts (in years) | 2 years | |
Maximum duration, interest rate contracts (in years) | 3 years | |
Estimated amount of the existing net gain (loss) to be reclassified into earnings in the next 12 months | $ 10 | |
Amount of derivative instruments subject to contractually defined counterparty liability position limits | 0 | $ 1 |
Commodity purchase derivative contracts | ||
Derivative [Line Items] | ||
Cash margin balances amount | 1 | 0 |
Purchases of Inventory | Foreign exchange derivative contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | $ 38 | 51 |
Total Commodity Purchase Derivative Contracts | ||
Derivative [Line Items] | ||
Maximum duration, commodity contracts (in years) | 2 years | |
Notional amount of derivatives | $ 44 | $ 41 |
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 | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | $ 2 | $ (3) | $ (4) | $ (5) |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 2 | 4 | 6 | 18 |
Commodity purchase derivative contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | 0 | (4) | (5) | (6) |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | (2) | 0 | (4) | 7 |
Foreign exchange derivative contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | 2 | 1 | 1 | 1 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 0 | 0 | 0 | 1 |
Interest rate derivative contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | $ 4 | $ 4 | $ 10 | $ 10 |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities for Fair Values of Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 2 | $ 2 |
Liabilities | 0 | 1 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2 | 2 |
Liabilities | 0 | 1 |
Commodity purchase derivative contracts | Fair Value, Inputs, Level 1 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 2 |
Liabilities | 0 | 0 |
Commodity purchase derivative contracts | Fair Value, Inputs, Level 1 | Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 2 |
Liabilities | 0 | 0 |
Commodity purchase derivative contracts | Fair Value, Inputs, Level 2 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1 | 0 |
Liabilities | 0 | 1 |
Commodity purchase derivative contracts | Fair Value, Inputs, Level 2 | Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1 | 0 |
Liabilities | 0 | 1 |
Foreign exchange forward contract | Fair Value, Inputs, Level 2 | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1 | 0 |
Foreign exchange forward contract | Fair Value, Inputs, Level 2 | Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 1 | $ 0 |
FINANCIAL INSTRUMENTS AND FAI_6
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities for Fair Value Disclosure) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 30, 2023 |
Assets | ||
Cash and cash equivalents | $ 219 | $ 367 |
Total assets | 5,805 | 5,945 |
Liabilities | ||
Notes and loans payable | 111 | 50 |
Total liabilities | 5,550 | 5,557 |
Carrying Amount | ||
Assets | ||
Total assets | 240 | 381 |
Liabilities | ||
Total liabilities | 2,591 | 2,527 |
Estimated Fair Value | ||
Assets | ||
Total assets, estimated fair value | 240 | 381 |
Liabilities | ||
Total liabilities, estimated fair value | 2,467 | 2,377 |
Fair Value, Inputs, Level 1 | Carrying Amount | ||
Assets | ||
Trust assets for nonqualified deferred compensation plans | 151 | 129 |
Fair Value, Inputs, Level 1 | Estimated Fair Value | ||
Assets | ||
Trust assets for nonqualified deferred compensation plans, estimated fair value | 151 | 129 |
Fair Value, Inputs, Level 2 | Carrying Amount | ||
Liabilities | ||
Notes and loans payable | 111 | 50 |
Current maturities of long-term debt and Long-term debt | 2,480 | 2,477 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | ||
Liabilities | ||
Notes and loans payable, estimated fair value | 111 | 50 |
Current maturities of long-term debt and Long-term debt, estimated fair value | 2,356 | 2,327 |
Interest-bearing investments, including money market funds | Fair Value, Inputs, Level 1 | Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 76 | 243 |
Interest-bearing investments, including money market funds | Fair Value, Inputs, Level 1 | Estimated Fair Value | ||
Assets | ||
Cash and cash equivalents, estimated fair value | 76 | 243 |
Time deposits | Fair Value, Inputs, Level 2 | Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 13 | 9 |
Time deposits | Fair Value, Inputs, Level 2 | Estimated Fair Value | ||
Assets | ||
Cash and cash equivalents, estimated fair value | $ 13 | $ 9 |
OTHER (INCOME) EXPENSE, NET (De
OTHER (INCOME) EXPENSE, NET (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 14, 2023 USD ($) extensionOption | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Other Income and Expenses [Abstract] | |||||
Amortization of trademarks and other intangible assets | $ 7 | $ 8 | $ 22 | $ 22 | |
Trust investment (gains) losses, net | (8) | (7) | (18) | (8) | |
Net periodic benefit cost | 1 | 4 | 11 | 12 | |
Foreign exchange transaction (gains) losses, net | 1 | 4 | 24 | 7 | |
Income from equity investees | (1) | (1) | (3) | (3) | |
Interest income | (4) | (4) | (21) | (9) | |
Restructuring costs | 5 | 15 | 5 | 34 | |
Gain on sale-leaseback transaction | 0 | 0 | (16) | 0 | |
Other | (3) | 5 | (1) | (1) | |
Total | (2) | 24 | 3 | 54 | |
Segment Reporting Information [Line Items] | |||||
Proceeds from asset sale-leaseback transaction of warehouse | $ 19 | ||||
Carrying value of warehouse sold in asset sale-leaseback transaction | $ 3 | ||||
Gain on sale-leaseback transaction | $ 0 | $ 0 | $ 16 | $ 0 | |
Sale-leaseback transaction, lease term | 8 years | ||||
Sale-leaseback transaction, number of lease options to extend | extensionOption | 2 | ||||
Sale-leaseback transaction, lease renewal term | 5 years | ||||
Health and Wellness | |||||
Other Income and Expenses [Abstract] | |||||
Gain on sale-leaseback transaction | $ (16) | ||||
Segment Reporting Information [Line Items] | |||||
Gain on sale-leaseback transaction | $ 16 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate on earnings | (18.60%) | 14.70% | 41.90% | 1,813.50% |
Income taxes paid, net of refunds | $ 314 | $ 61 |
NET EARNINGS (LOSSES) PER SHA_3
NET EARNINGS (LOSSES) PER SHARE (EPS) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||||
Basic (in shares) | 124,249 | 123,649 | 124,133 | 123,512 |
Dilutive effect of stock options and other (in shares) | 0 | 0 | 588 | 0 |
Diluted (in shares) | 124,249 | 123,649 | 124,721 | 123,512 |
Antidilutive stock options and other (in shares) | 4,758 | 4,953 | 2,720 | 4,953 |
COMPREHENSIVE INCOME (LOSS) (De
COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | ||||
Net earnings (losses) | $ (50) | $ (209) | $ 71 | $ (20) |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | 206 | 10 | 212 | (1) |
Net unrealized gains (losses) on derivatives | (1) | (7) | (10) | (21) |
Pension and postretirement benefit adjustments | (1) | 1 | 136 | 3 |
Total other comprehensive (loss) income, net of tax | 204 | 4 | 338 | (19) |
Comprehensive income (loss) | 154 | (205) | 409 | (39) |
Less: Total comprehensive income attributable to noncontrolling interests | 1 | 2 | 7 | 7 |
Total comprehensive income (loss) attributable to Clorox | $ 153 | $ (207) | $ 402 | $ (46) |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Equity) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 218 | $ 491 | $ 388 | $ 729 |
Beginning balance, common stock (in shares) | 123,820,022 | |||
Beginning balance, treasury stock (in shares) | (6,921,439) | |||
Net earnings (losses) | (50) | (209) | $ 71 | (20) |
Other comprehensive (loss) income | 204 | 4 | 338 | (19) |
Dividends to Clorox stockholders | (150) | (147) | (600) | (587) |
Dividends to noncontrolling interests | (2) | (3) | (11) | (11) |
Stock-based compensation | 26 | 29 | 55 | 60 |
Other employee stock plan activities | 9 | 7 | 14 | 20 |
Ending balance | $ 255 | $ 172 | $ 255 | $ 172 |
Ending balance, common stock (in shares) | 124,186,844 | 124,186,844 | ||
Ending balance, treasury stock (in shares) | (6,554,617) | (6,554,617) | ||
Dividends declared per share (in dollars per share) | $ 1.20 | $ 1.18 | $ 4.80 | $ 4.72 |
Common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 131 | $ 131 | $ 131 | $ 131 |
Beginning balance, common stock (in shares) | 130,741,000 | 130,741,000 | 130,741,000 | 130,741,000 |
Ending balance | $ 131 | $ 131 | $ 131 | $ 131 |
Ending balance, common stock (in shares) | 130,741,000 | 130,741,000 | 130,741,000 | 130,741,000 |
Additional paid-in capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 1,245 | $ 1,207 | $ 1,245 | $ 1,202 |
Stock-based compensation | 26 | 29 | 55 | 60 |
Other employee stock plan activities | (1) | (4) | (30) | (30) |
Ending balance | 1,270 | 1,232 | 1,270 | 1,232 |
Retained earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 241 | 782 | 583 | 1,048 |
Net earnings (losses) | (51) | (211) | 64 | (27) |
Dividends to Clorox stockholders | (150) | (147) | (600) | (587) |
Other employee stock plan activities | (6) | (9) | (13) | (19) |
Ending balance | 34 | 415 | 34 | 415 |
Treasury stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ (1,205) | $ (1,297) | $ (1,246) | $ (1,346) |
Beginning balance, treasury stock (in shares) | (6,661,000) | (7,263,000) | (6,921,000) | (7,589,000) |
Other employee stock plan activities | $ 16 | $ 20 | $ 57 | $ 69 |
Other employee stock plan activities (in shares) | 106,000 | 133,000 | 366,000 | 459,000 |
Ending balance | $ (1,189) | $ (1,277) | $ (1,189) | $ (1,277) |
Ending balance, treasury stock (in shares) | (6,555,000) | (7,130,000) | (6,555,000) | (7,130,000) |
Accumulated other comprehensive net (loss) income | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ (359) | $ (502) | $ (493) | $ (479) |
Other comprehensive (loss) income | 204 | 4 | 338 | (19) |
Ending balance | (155) | (498) | (155) | (498) |
Noncontrolling interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 165 | 170 | 168 | 173 |
Net earnings (losses) | 1 | 2 | 7 | 7 |
Dividends to noncontrolling interests | (2) | (3) | (11) | (11) |
Ending balance | $ 164 | $ 169 | $ 164 | $ 169 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of Changes in Accumulated Other Comprehensive Net (Losses)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | $ 220 | |||
Total other comprehensive (loss) income, net of tax | $ 204 | $ 4 | 338 | $ (19) |
Balance, ending | 91 | 91 | ||
Accumulated other comprehensive net (loss) income | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | (359) | (502) | (493) | (479) |
Other comprehensive (loss) income before reclassifications | (14) | 6 | (10) | (7) |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 221 | (3) | 392 | (14) |
Income tax benefit (expense), and other | (3) | 1 | (44) | 2 |
Total other comprehensive (loss) income, net of tax | 204 | 4 | 338 | (19) |
Balance, ending | (155) | (498) | (155) | (498) |
Foreign currency translation adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | (439) | (459) | (445) | (448) |
Other comprehensive (loss) income before reclassifications | (16) | 9 | (10) | (2) |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 223 | 0 | 223 | 0 |
Income tax benefit (expense), and other | (1) | 1 | (1) | 1 |
Total other comprehensive (loss) income, net of tax | 206 | 10 | 212 | (1) |
Balance, ending | (233) | (449) | (233) | (449) |
Net unrealized gains (losses) on derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | 90 | 107 | 99 | 121 |
Other comprehensive (loss) income before reclassifications | 2 | (3) | (4) | (5) |
Amounts reclassified from Accumulated other comprehensive net (loss) income | (2) | (4) | (6) | (18) |
Income tax benefit (expense), and other | (1) | 0 | 0 | 2 |
Total other comprehensive (loss) income, net of tax | (1) | (7) | (10) | (21) |
Balance, ending | 89 | 100 | 89 | 100 |
Pension and postretirement benefit adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | (10) | (150) | (147) | (152) |
Other comprehensive (loss) income before reclassifications | 0 | 0 | 4 | 0 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 0 | 1 | 175 | 4 |
Income tax benefit (expense), and other | (1) | 0 | (43) | (1) |
Total other comprehensive (loss) income, net of tax | (1) | 1 | 136 | 3 |
Balance, ending | $ (11) | $ (149) | $ (11) | $ (149) |
EMPLOYEE BENEFIT PLANS (Narrati
EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
One-time noncash settlement charge, net of curtailment gain | $ 0 | $ 0 | $ 171 | $ 0 |
Plan assets contributed to defined contribution plan | 19 | |||
Net periodic benefit cost | 1 | 4 | 11 | 12 |
Retirement Income Plans | UNITED STATES | Other Postretirement Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
One-time noncash settlement charge, net of curtailment gain | 171 | |||
One-time noncash settlement charge, net of curtailment gain, after tax | 130 | |||
Net periodic benefit cost | 2 | 4 | 183 | 12 |
Retirement plan contributions | 8 | 8 | 12 | 12 |
Retirement Health Care | Postretirement Health Coverage | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ (1) | $ (1) | $ (1) | $ (1) |
EMPLOYEE BENEFIT PLANS (Compone
EMPLOYEE BENEFIT PLANS (Components of the Net Cost of Retirement Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total | $ 1 | $ 4 | $ 11 | $ 12 |
Other Postretirement Benefits Plan | Retirement Income Plans | UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 2 | 4 | 10 | 13 |
Expected return on plan assets | 0 | (3) | (2) | (8) |
Amortization of unrecognized items | 0 | 3 | 3 | 7 |
Curtailment gain | 0 | 0 | (6) | 0 |
Settlement loss | 0 | 0 | 178 | 0 |
Total | $ 2 | $ 4 | $ 183 | $ 12 |
Weighted average long-term expected rate or return on plan assets (percentage) | 3.30% |
OTHER CONTINGENCIES AND GUARA_2
OTHER CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2024 | Jun. 30, 2023 | |
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 28 | $ 28 |
Letters of credit | 18 | |
Letters of credit, amount outstanding | 0 | |
Alameda County, California Matter | ||
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 12 | 12 |
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 | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
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% | 26% | 25% | 26% |
SEGMENT RESULTS (Reportable Seg
SEGMENT RESULTS (Reportable Segment Information ) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2024 | |
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 1,814 | $ 1,915 | $ 5,190 | $ 5,370 | ||
Interest income | 4 | 4 | 21 | 9 | ||
Interest expense | (22) | (24) | (69) | (69) | ||
Loss on divestiture | (240) | 0 | (240) | 0 | ||
Pension settlement charge | 0 | 0 | (171) | 0 | ||
Cyberattack costs | (8) | 0 | (57) | 0 | ||
VMS impairment | 0 | (445) | 0 | (445) | ||
Streamlined operating model | (10) | (21) | (13) | (44) | $ (60) | $ (73) |
Digital capabilities and productivity enhancements investment | (26) | (28) | (85) | (73) | ||
Earnings (losses) before income taxes | $ (42) | $ (245) | $ 123 | $ 1 | ||
Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 100% | 100% | ||||
Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 100% | 100% | 100% | 100% | 100% | |
Operating Segments | Health and Wellness | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 609 | $ 647 | $ 1,833 | $ 1,881 | ||
Segment adjusted EBIT | $ 154 | $ 161 | $ 517 | $ 418 | ||
Operating Segments | Health and Wellness | Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 18% | 15% | ||||
Operating Segments | Health and Wellness | Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 4% | 7% | 4% | 6% | 5% | |
Operating Segments | Household | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 526 | $ 550 | $ 1,353 | $ 1,435 | ||
Segment adjusted EBIT | $ 74 | $ 99 | $ 162 | $ 165 | ||
Operating Segments | Household | Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 12% | 11% | ||||
Operating Segments | Household | Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 0% | 4% | 0% | 2% | 1% | |
Operating Segments | Lifestyle | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 315 | $ 353 | $ 947 | $ 1,005 | ||
Segment adjusted EBIT | $ 64 | $ 83 | $ 192 | $ 217 | ||
Operating Segments | Lifestyle | Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 0% | 11% | ||||
Operating Segments | Lifestyle | Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 0% | 2% | 0% | 3% | 3% | |
Operating Segments | International | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 310 | $ 305 | $ 891 | $ 876 | ||
Segment adjusted EBIT | $ 38 | $ 27 | $ 104 | $ 74 | ||
Operating Segments | International | Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 0% | 4% | ||||
Operating Segments | International | Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 0% | 21% | 0% | 19% | 13% | |
Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 54 | $ 60 | $ 166 | $ 173 | ||
Segment adjusted EBIT | $ (70) | $ (101) | $ (238) | $ (251) | ||
Corporate and Other | Cyberattack | Product Concentration Risk | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 70% | 59% | ||||
Corporate and Other | Restructuring and Related Costs | Product Concentration Risk | Employee-Related Costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration percentage | 96% | 66% | 96% | 70% | 78% | |
Operating Segments and Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment adjusted EBIT | $ 260 | $ 269 | $ 737 | $ 623 |
SEGMENT RESULTS (Net Sales Perc
SEGMENT RESULTS (Net Sales Percentages) (Details) - Revenue from Contract with Customer - Product Concentration Risk | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 100% | 100% | 100% | 100% |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 3% | 3% | 3% | 3% |
Health and Wellness | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 34% | 34% | 35% | 35% |
Health and Wellness | Cleaning | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 29% | 30% | 30% | 30% |
Health and Wellness | Professional Products | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 5% | 4% | 5% | 5% |
Household | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 29% | 29% | 27% | 27% |
Household | Bags and Wraps | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 12% | 12% | 12% | 12% |
Household | Cat Litter | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 8% | 9% | 9% | 9% |
Household | Grilling | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 9% | 8% | 6% | 6% |
Lifestyle | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 17% | 18% | 18% | 19% |
Lifestyle | Food | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 10% | 10% | 10% | 11% |
Lifestyle | Natural Personal Care | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 3% | 4% | 4% | 4% |
Lifestyle | Water Filtration | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 4% | 4% | 4% | 4% |
International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 17% | 16% | 17% | 16% |