| Document and Entity Information | |
| 9 Months Ended
Mar. 31, 2010 | |
| Document Information | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2010-03-31 |
| Document Fiscal Year Focus | 2,010 |
| Document Fiscal Period Focus | Q3 |
| Entity Registrant Name | CLOROX CO /DE/ |
| Entity Central Index Key | 0000021076 |
| Current Fiscal Year End Date | --06-30 |
| Entity Filer Category | Large Accelerated Filer |
| Entity Common Stock, Shares Outstanding | 140,841,235 |
| Condensed Consolidated Statements of Earnings (USD $) | ||||
| In Millions, except Share data in Thousands | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 | 9 Months Ended
Mar. 31, 2010 | 9 Months Ended
Mar. 31, 2009 |
| Net sales | $1,366 | $1,350 | $4,017 | $3,950 |
| Cost of products sold | 749 | 739 | 2,220 | 2,291 |
| Gross profit | 617 | 611 | 1,797 | 1,659 |
| Selling and administrative expenses | 182 | 174 | 544 | 530 |
| Advertising costs | 127 | 125 | 381 | 351 |
| Research and development costs | 30 | 27 | 86 | 81 |
| Restructuring costs | 14 | 4 | 16 | |
| Interest expense | 34 | 39 | 107 | 125 |
| Other expense (income), net | 1 | (1) | 25 | 6 |
| Earnings before income taxes | 243 | 233 | 650 | 550 |
| Income taxes | 78 | 80 | 218 | 183 |
| Net earnings | $165 | $153 | $432 | $367 |
| Earnings per share | ||||
| Basic | 1.17 | 1.08 | 3.06 | 2.61 |
| Diluted | 1.16 | 1.08 | 3.04 | 2.59 |
| Weighted average shares outstanding (in thousands) | ||||
| Basic | 140,764 | 139,213 | 140,270 | 138,919 |
| Diluted | 142,014 | 140,002 | 141,509 | 140,078 |
| Dividend declared per share | 0.5 | 0.46 | 1.5 | 1.38 |
| Condensed Consolidated Balance Sheets (USD $) | ||
| In Millions | 9 Months Ended
Mar. 31, 2010 | 12 Months Ended
Jun. 30, 2009 |
| ASSETS | ||
| Cash and cash equivalents | $241 | $206 |
| Receivables, net | 556 | 486 |
| Inventories, net | 423 | 366 |
| Other current assets | 118 | 122 |
| Total current assets | 1,338 | 1,180 |
| Property, plant and equipment, net | 935 | 955 |
| Goodwill | 1,658 | 1,630 |
| Trademarks, net | 565 | 557 |
| Other intangible assets, net | 100 | 105 |
| Other assets | 147 | 149 |
| Total assets | 4,743 | 4,576 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
| Notes and loans payable | 586 | 421 |
| Current maturities of long-term debt | 300 | 577 |
| Accounts payable | 342 | 381 |
| Accrued liabilities | 478 | 472 |
| Income taxes payable | 66 | 86 |
| Total current liabilities | 1,772 | 1,937 |
| Long-term debt | 2,132 | 2,151 |
| Other liabilities | 610 | 640 |
| Deferred income taxes | 49 | 23 |
| Total liabilities | 4,563 | 4,751 |
| Contingencies | ||
| Stockholders' equity (deficit) | ||
| Common stock: $1.00 par value; 750,000,000 shares authorized; 158,741,461 shares issued at March 31, 2010 and June 30, 2009; and 140,841,235 and 139,157,976 shares outstanding at March 31, 2010 and June 30, 2009, respectively | 159 | 159 |
| Additional paid-in capital | 599 | 579 |
| Retained earnings | 838 | 640 |
| Treasury shares, at cost: 17,900,226 and 19,583,485 shares at March 31, 2010 and June 30, 2009, respectively | (1,109) | (1,206) |
| Accumulated other comprehensive net losses | (307) | (347) |
| Stockholders' equity (deficit) | 180 | (175) |
| Total liabilities and stockholders' equity (deficit) | $4,743 | $4,576 |
| Condensed Consolidated Balance Sheets [Parenthetical] (USD $) | ||
| Mar. 31, 2010
| Jun. 30, 2009
| |
| Condensed Consolidated Balance Sheets [Parentheticals] | ||
| Common stock, par value | $1 | $1 |
| Common stock, shares authorized | 750,000,000 | 750,000,000 |
| Common stock, shares, issued | 158,741,461 | 158,741,461 |
| Common stock, shares, outstanding | 140,841,235 | 139,157,976 |
| Treasury stock, shares | 17,900,226 | 19,583,485 |
| Condensed Consolidated Statements of Cash Flows (USD $) | ||
| In Millions | 9 Months Ended
Mar. 31, 2010 | 9 Months Ended
Mar. 31, 2009 |
| Operating activities: | ||
| Net earnings | $432 | $367 |
| Adjustments to reconcile earnings from operations: | ||
| Depreciation and amortization | 139 | 142 |
| Share-based compensation | 46 | 45 |
| Deferred income taxes | 21 | (4) |
| Net loss on disposition of assets | 5 | |
| Other | (19) | 19 |
| Changes in: | ||
| Receivables, net | (60) | 21 |
| Inventories, net | (50) | (42) |
| Other current assets | (3) | (20) |
| Accounts payable and accrued liabilities | (41) | (101) |
| Income taxes payable | (22) | (9) |
| Net cash provided by operations | 443 | 423 |
| Investing activities: | ||
| Capital expenditures | (111) | (135) |
| Businesses acquired, net of cash acquired | (19) | |
| Other | 2 | (2) |
| Net cash used for investing activities | (128) | (137) |
| Financing activities: | ||
| Notes and loans payable, net | 163 | (211) |
| Long-term debt borrowings | 297 | |
| Long-term debt repayments | (590) | |
| Cash dividends paid | (211) | (193) |
| Issuance of common stock for employee stock plans, and other | 61 | 37 |
| Net cash used for financing activities | (280) | (367) |
| Effect of exchange rate changes on cash and cash equivalents | (16) | |
| Net increase (decrease) in cash and cash equivalents | 35 | (97) |
| Cash and cash equivalents: | ||
| Beginning of year | 206 | 214 |
| End of year | $241 | $117 |
| INTERIM FINANCIAL STATEMENTS | |
| 9 Months Ended
Mar. 31, 2010 | |
| INTERIM FINANCIAL STATEMENTS | NOTE 1. INTERIM FINANCIAL STATEMENTS Basis of Presentation The unaudited interim condensed consolidated financial statements for the three and nine months ended March 31, 2010 and 2009, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its subsidiaries (the Company) for the periods presented. Certain prior period amounts have been reclassified in the condensed consolidated financial statements to conform to the current period presentation. The results for the interim period ended March 31, 2010, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2010, or for any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the Securities and Exchange Commission (the 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, 2009, which includes a complete set of footnote disclosures, including the Company's significant accounting policies. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ materially from estimates and assumptions made. Foreign Currency Translation Prior to December 31, 2009, the Company translated its Venezuelan subsidiary's financial statements using Venezuela's official exchange rate, which had been fixed by the Venezuelan government at 2.15 bolivar fuertes (VEF) to the U.S. dollar. However, the Company's access to the official exchange rate has become increasingly limited due to delays in obtaining U.S. dollars through the government-sponsored currency exchange process at the official exchange rate and the removal of some products from the official list of items that may be imported at the official exchange rate. This has led to the substantial use of the parallel market currency exchange rate to convert VEFs to U.S. dollars to pay for certain imported inventory purchases. The parallel market currency exchange rate represents the rates negotiated with local financial intermediaries. Due to these circumstances, effective December 31, 2009, the Company began translating its Venezuelan subsidiary's financial statements using the parallel market currency exchange rate, the rate at which the Company expects to be able to remit dividends or return capital. The rate used at December 31, 2009, was 5.87 VEF to the U.S. dollar. On a pre-tax basis, this change in the rate used for converting these currencies resulted in additional remeasurement losses of $12 for the three months ended December 31, 2009, which related primarily to U.S. dollar denominated inventory |
| BUSINESS ACQUIRED | |
| 9 Months Ended
Mar. 31, 2010 | |
| BUSINESS ACQUIRED | NOTE 2. BUSINESS ACQUIRED In January 2010, the Company acquired the assets of Caltech Industries Inc., a company which provides disinfectants for the health care industry, for an aggregate price of $24, with the objective of expanding the Company's capabilities in the areas of health and wellness. The final purchase price will be subject to certain tax adjustments. In connection with the purchase, the Company acquired Caltech Industries' facility and its workforce. The Company paid for the acquisition in cash. Net assets acquired, at fair value, included inventory of $2 and other assets of $4, goodwill of $9, trademarks of $6, customer list of $2, product formulae of $2 and other liabilities of $1. The trademarks, customer list and product formulae will be amortized over a period of 3, 15 and 10 years, respectively. Goodwill represents a substantial portion of the acquisition proceeds due to the high growth rate of the use of disinfecting products in the healthcare industry. Additional changes to the fair values of the assets acquired and liabilities assumed may be recorded as the Company finalizes its determination of the fair value of intangible assets acquired. Operating results of the acquired business are included in the consolidated net earnings in the Cleaning reportable segment, from the acquisition date, for the three and nine months ended March 31, 2010. Pro forma results of the Company, assuming the acquisition had occurred at the beginning of each period presented, would not be materially different from the results reported. |
| RESTRUCTURING | |
| 9 Months Ended
Mar. 31, 2010 | |
| RESTRUCTURING | NOTE 3. RESTRUCTURING In fiscal year 2008, the Company began a restructuring plan that involves simplifying its supply chain and other restructuring activities (Supply Chain and Other restructuring plan), which was subsequently expanded to include additional costs, primarily severance, associated with the Company's plan to reduce certain staffing levels. The Company anticipates the Supply Chain and Other restructuring plan will be completed in fiscal year 2012. The following table summarizes restructuring costs,primarily severance, associated with the Company's Supply Chain and Other restructuring plan by affected reportable segment, with unallocated amounts set forth in Corporate: Three Months Ended Nine Months Ended 3/31/2010 3/31/2009 3/31/2010 3/31/2009 Cleaning $ - $ 1 $ 2 $ 3 International - 2 - 2 Corporate - 11 2 11 Total Company $ - $ 14 $ 4 $ 16 In addition to the restructuring costs described above, for the three months ended March 31, 2010, the Company recognized in cost of products sold restructuring-related costs associated with the Supply Chain and Other restructuring plan of $1. For the nine months ended March 31, 2010, the Company recognized restructuring-related costs associated with the Supply Chain and Other restructuring plan of $2 and $7, included in selling and administrative expenses and cost of products sold, respectively. For the three months ended March 31, 2009, the Company recognized restructuring-related costs associated with the Supply Chain and Other restructuring plan of $1 and $4, included in selling and administrative expenses and cost of products sold, respectively. For the nine months ended March 31, 2009, the Company recognized restructuring-related costs associated with the Supply Chain and Other restructuring plan of $1 and $11, included in selling and administrative expenses and cost of products sold, respectively. The following table summarizes restructuring-related costs associated with the Company's Supply Chain and Other restructuring plan by affected reportable segment, with unallocated amounts set forth in Corporate: Three Months Ended Nine Months Ended 3/31/2010 3/31/2009 3/31/2010 3/31/2009 Cleaning $ 1 $ 4 $ 4 $ 7 Household - - 3 3 International - - - 1 Corporate - 1 2 1 Total Company $ 1 $ 5 $ 9 $ 12 Total costs associated with the Supply Chain and Other restructuring plan since inception through March 31, 2010, were $111, of which $35, $43, $12 and $21 were related to the Cleaning, Household, International segments and Corporate, respectively. The Company anticipates incurring approximately $17 to $23 of Supply Chain and Other restructuring-related charges in fiscal year 2010, of which approximately $2 are expected to be noncash related. The Company anticipates approximately $6 to $8 of the fiscal year 2010 charges to be in Corporate and $8 to $10 to be in the Cleaning segment, of which approximately $6 to $8 are |
| FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
| 9 Months Ended
Mar. 31, 2010 | |
| FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | NOTE 4. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The Company is exposed to certain commodity and foreign currency risks relating to its ongoing business operations. The Company uses commodity futures and swap contracts to fix the price of a portion of its forecasted raw material requirements. Contract maturities, which are generally no longer than 18 months, are matched to the length of the raw material purchase contracts. The Company also enters into certain foreign currency related derivative contracts to manage a portion of the Company's foreign exchange risk associated with the purchase of inventory. These foreign currency contracts generally have durations no longer than twelve months. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as a hedge, and on the type of the hedging relationship. For those derivative instruments designated and qualifying as hedging instruments, the Company must designate the hedging instrument as a fair value hedge or a cash flow hedge. The Company designates its commodity forward and future contracts of forecasted purchases for raw materials and its foreign currency forward contracts of forecasted purchases of inventory as cash flow hedges. During the three and nine months ended March 31, 2010, the Company had no hedging instruments designated as fair value hedges. For derivative instruments designated and qualifying as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The estimated amount of the existing net gain at the reporting date expected to be reclassified into earnings within the next twelve months is $4. Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. During the three months ended March 31, 2010 and 2009, and the nine months ended March 31, 2010, the hedge ineffectiveness was not material. The Company's derivative financial instruments designated as hedging instruments are recorded at fair value in the condensed consolidated balance sheet as follows: Fair value Balance Sheet location 3/31/2010 6/30/2009 Assets Commodity purchase contracts Other current assets $ 5 $ 6 Liabilities Foreign exchange contracts Accrued liabilities $ (1 ) $ - Commodity purchase contracts Accrued liabilities (1 ) (21 ) $ (2 ) $ (21 ) The effects of derivative instruments on OCI and on the statement of earnings were as follows: Gain (Loss) recognized in OCI Gain (Loss) reclassified from OCI and recognized inearnings Cash flow hedges Three monthsended3/31/2010 Three monthsended3/31/2009 Nine monthsended3/31/2010 Three monthsended3/31/2010 Three monthsended3/31/2009 Nine monthsended3/31/2010 |
| INVENTORIES, NET | |
| 9 Months Ended
Mar. 31, 2010 | |
| INVENTORIES, NET | NOTE 5. INVENTORIES, NET Inventories, net, consisted of the following at: 3/31/2010 6/30/2009 Finished goods $ 360 $ 304 Raw materials and packaging 100 99 Work in process 4 4 LIFO allowances (31 ) (31 ) Allowances for obsolescence (10 ) (10 ) Total $ 423 $ 366 |
| OTHER LIABILITIES | |
| 9 Months Ended
Mar. 31, 2010 | |
| OTHER LIABILITIES | NOTE 6. OTHER LIABILITIES Other liabilities consisted of the following at: 3/31/2010 6/30/2009 Venture agreement net terminal obligation $ 273 $ 269 Employee benefit obligations 241 266 Taxes 60 65 Other 36 40 Total $ 610 $ 640 |
| DEBT | |
| 9 Months Ended
Mar. 31, 2010 | |
| DEBT | NOTE 7. DEBT In January 2010, $575 of debt became due and was paid. The Company funded the debt repayment through the use of commercial paper and, to a lesser extent, operating cash flows. In November 2009, the Company issued $300 of long-term debt in senior notes. The notes carry an annual fixed interest rate of 3.55% payable semi-annually in May and November. The notes mature on November 1, 2015. Proceeds from the notes were used to retire commercial paper. The notes rank equally with all of the Company's existing and future senior indebtedness. |
| NET EARNINGS PER SHARE | |
| 9 Months Ended
Mar. 31, 2010 | |
| NET EARNINGS PER SHARE | NOTE 8. NET EARNINGS PER SHARE The Company computes EPS using the two-class method (See Note 1), which is an earnings allocation formula that determines EPS for common stock and participating securities. EPS for common stock is computed by dividing net earnings applicable to common stock by the weighted average number of common shares outstanding each period on an unrounded basis. Net earnings applicable to common stock includes dividends paid to common shareholders during the period plus a proportionate share of undistributed net earnings which is based on the weighted average number of shares of common stock and participating securities outstanding during the period. Diluted EPS for common stock reflects the earnings dilution that could occur from common shares that may be issued through stock options, restricted stock awards, performance units and restricted stock units that are not participating securities. Excluded from this calculation are amounts allocated to participating securities. The following are reconciliations of net earnings to net earnings applicable to common stock, and the number of common shares outstanding (in thousands) used to calculate basic EPS to those used to calculate diluted EPS: Three Months Ended Nine Months Ended 3/31/2010 3/31/2009 3/31/2010 3/31/2009 Net earnings $ 165 $ 153 $ 432 $ 367 Less: Earnings allocated to participating securities - (2 ) (2 ) (4 ) Net earnings applicable to common stock $ 165 $ 151 $ 430 $ 363 Weighted Average Number ofShares Outstanding for theThree Months Ended Weighted Average Number ofShares Outstanding for theNine Months Ended 3/31/2010 3/31/2009 3/31/2010 3/31/2009 Basic 140,764 139,213 140,270 138,919 Dilutive effect of stock options and other (excludes participating securities) 1,250 789 1,239 1,159 Diluted 142,014 140,002 141,509 140,078 During the three and nine months ended March 31, 2010, the Company did not include stock options to purchase 2,743 thousand and 4,038 thousand shares, respectively, of the Company's common stock, in the calculations of diluted EPS because their inclusion would be anti-dilutive. During the three and nine months ended March 31, 2009, the Company did not include stock options to purchase 6,691 thousand and 5,239 thousand shares, respectively, of the Company's common stock, in the calculations of diluted EPS because their inclusion would be anti-dilutive. The Company did not repurchase any shares in the open market during the three and nine months ended March 31, 2010 and 2009. |
| COMPREHENSIVE INCOME | |
| 9 Months Ended
Mar. 31, 2010 | |
| COMPREHENSIVE INCOME | NOTE 9. COMPREHENSIVE INCOME Comprehensive income includes net earnings and certain adjustments that are excluded from net earnings, but included as a separate component of stockholders' equity (deficit), net of tax. Comprehensive income was as follows: Three Months Ended Nine Months Ended 3/31/2010 3/31/2009 3/31/2010 3/31/2009 Net earnings $ 165 $ 153 $ 432 $ 367 Other comprehensive gains (losses), net of tax: Foreign currency translation 10 (9 ) 27 (129 ) Net derivative adjustments (1 ) 2 10 (53 ) Pension and postretirement benefit adjustments 1 1 3 2 Total comprehensive income $ 175 $ 147 $ 472 $ 187 |
| INCOME TAXES | |
| 9 Months Ended
Mar. 31, 2010 | |
| INCOME TAXES | NOTE 10. 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. On March 23, 2010, the Patient Protection and Affordable Care Act (PPACA) was signed into law, and on March 30, 2010, the Health Care and Education Reconciliation Act of 2010 was signed into law. The PPACA changes the tax treatment of federal subsidies received by sponsors of retiree health benefit plans that provide a benefit similar to Medicare Part D. These subsidies were previously non-taxable but will become taxable effective in tax years beginning after December 31, 2012. The Company has concluded that the impact of the future elimination of this tax deduction on its financial statements is and will be insignificant. As of March 31, 2010 and June 30, 2009, the total amount of unrecognized tax benefits was $81 and $98, respectively, of which $77 and $91, respectively, would reduce income tax expense and the effective tax rate if recognized. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. As of March 31, 2010 and June 30, 2009, the total balance of accrued interest and penalties related to uncertain tax positions was $21 and $17, respectively. Interest and penalties included in income tax expense were $(1) and $4 for the three and nine months ended March 31, 2010, and $2 and $1 for the three and nine months ended March 31, 2009, respectively. The Company files income tax returns in the U.S. federal and various state, local and foreign jurisdictions. Certain issues relating to 2003, 2004 and 2006 are under review by the IRS Appeals Division. The Company made payments of tax and interest to the IRS related to fiscal years 2004 and 2006 in the first quarter of fiscal year 2010 of $8. No tax benefits had previously been recognized for these payments. Various income tax returns in state and foreign jurisdictions are currently in the process of examination. In the twelve months succeeding March 31, 2010, audit resolutions could potentially reduce total unrecognized tax benefits by up to $27, primarily as a result of cash settlement payments. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. |
| RETIREMENT INCOME AND HEALTH CARE BENEFIT PLANS | |
| 9 Months Ended
Mar. 31, 2010 | |
| RETIREMENT INCOME AND HEALTH CARE BENEFIT PLANS | NOTE 11. RETIREMENT INCOME AND HEALTH CARE BENEFIT PLANS The following table summarizes the components of net periodic benefit cost for the Company's retirement income and health care plans: Retirement Income Plans for the Three Months Ended Nine Months Ended 3/31/2010 3/31/2009 3/31/2010 3/31/2009 Components of net periodic benefit cost (income): Service cost $ 2 $ 1 $ 7 $ 7 Interest cost 8 7 23 22 Expected return on plan assets (8 ) (7 ) (23 ) (21 ) Amortization of unrecognized items 2 1 6 4 Total net periodic benefit cost $ 4 $ 2 $ 13 $ 12 Health Care Plans for the Three Months Ended Nine Months Ended 3/31/2010 3/31/2009 3/31/2010 3/31/2009 Components of net periodic benefit cost (income): Service cost $ - $ - $ 1 $ 1 Interest cost 1 - 3 3 Amortization of unrecognized items - - (1 ) (1 ) Total net periodic benefit cost $ 1 $ - $ 3 $ 3 During the nine months ended March 31, 2010, the Company made discretionary contributions of $38 to the domestic qualified retirement income plan. The Company made an additional discretionary contribution of $5 in April 2010. Based on current pension funding rules, the Company is not required to make any contributions in fiscal year 2010. |
| CONTINGENCIES | |
| 9 Months Ended
Mar. 31, 2010 | |
| CONTINGENCIES | NOTE 12. CONTINGENCIES The Company is involved in certain environmental matters, including Superfund and other response actions at various locations. The Company has a recorded liability of $16 and $19 at March 31, 2010 and June 30, 2009, respectively, for its share of the related aggregate future remediation cost. One matter in Dickinson County, Michigan, for which the Company is jointly and severally liable, accounts for a substantial majority of the recorded liability at both March 31, 2010 and June 30, 2009. The Company is subject to a cost-sharing arrangement with Ford Motor Co. (Ford) for this matter, under which the Company has agreed to be liable for 24.3% of the aggregate remediation and associated costs, other than legal fees, as the Company and Ford are each responsible for their own such fees. If Ford is unable to pay its share of the response and remediation obligations, the Company would likely be responsible for such obligations. In October 2004, the Company and Ford agreed to a consent judgment with the Michigan Department of Environmental Quality, which sets forth certain remediation goals and monitoring activities. Based on the current status of this matter, and with the assistance of environmental consultants, the Company maintains an undiscounted liability representing its best estimate of its share of costs associated with the capital expenditures, maintenance and other costs to be incurred over an estimated 30-year remediation period. The most significant components of the liability relate to the estimated costs associated with the remediation of groundwater contamination and excess levels of subterranean methane deposits. The Company made payments of less than $1 during each of the three and nine months ended March 31, 2010 and 2009, towards remediation efforts. Currently, the Company cannot accurately predict the timing of the payments that will likely be made under this estimated obligation. In addition, the Company's estimated loss exposure is sensitive to a variety of uncertain factors, including the efficacy of remediation efforts, changes in remediation requirements and the timing, varying costs and alternative clean-up technologies that may become available in the future. Although it is possible that the Company's exposure may exceed the amount recorded, any amount of such additional exposures, or range of exposures, is not estimable at this time. The Company is subject to various other lawsuits and claims relating to issues such as contract disputes, product liability, patents and trademarks, advertising, employee and other matters. Although the results of claims and litigation cannot be predicted with certainty, it is the opinion of management that the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, individually or in the aggregate, on the Company's consolidated financial statements taken as a whole. |
| SEGMENT RESULTS | |
| 9 Months Ended
Mar. 31, 2010 | |
| SEGMENT RESULTS | NOTE 13. SEGMENT RESULTS The Company operates through strategic business units which are aggregated into four reportable segments: Cleaning, Household, Lifestyle and International. The four reportable segments consist of the following: Cleaning consists of laundry, home-care, professional products and auto-care products marketed and sold in the United States. Products within this segment include laundry additives, including bleaches, under the Clorox and Clorox 2 brands; home-care products, primarily under the Clorox, Formula 409, Liquid-Plumr, Pine-Sol, S.O.S and Tilex brands; natural cleaning and laundry products under the Green Works brand; and auto-care products primarily under the Armor All and STP brands. Household consists of charcoal, cat litter and plastic bags, wraps and container products marketed and sold in the United States. Products within this segment include plastic bags, wraps and containers, under the Glad brand; cat litter products, under the Fresh Step, Scoop Away and Ever Clean brands; and charcoal products under the Kingsford and Match Light brands. Lifestyle consists of food products and water-filtration systems and filters marketed and sold in the United States and all natural personal care products. Products within this segment include dressings and sauces, primarily under the Hidden Valley and K C Masterpiece brands, water-filtration systems and filters under the Brita brand; and all natural personal care products under the Burt's Bees brand. International consists of products sold outside the United States, excluding natural personal care products. Corporate includes certain nonallocated administrative costs, interest income, interest expense and certain other nonoperating income and expenses. Corporate assets include cash and cash equivalents, the Company's headquarters and research and development facilities, information systems hardware and software, pension balances, and other investments. The table below presents reportable segment information and a reconciliation of the segment information to the Company's net sales and earnings before income taxes, with amounts that are not allocated to the operating segments shown as Corporate. Net Sales Three Months Ended Nine Months Ended 3/31/2010 3/31/2009 3/31/2010 3/31/2009 Cleaning $ 451 $ 471 $ 1,378 $ 1,371 Household 408 407 1,123 1,188 Lifestyle 226 215 638 602 International 281 257 878 789 Corporate - - - - Total Company $ 1,366 $ 1,350 $ 4,017 $ 3,950 Earnings (Losses)Before Income Taxes Three Months Ended Nine Months Ended 3/31/2010 3/31/2009 3/31/2010 3/31/2009 Cleaning $ 114 $ 111 $ 336 $ 304 Household 72 78 154 166 Lifestyle 82 74 226 197 International 47 47 133 116 Corporate (72 ) (77 ) (199 ) (233 ) Total Company $ 243 $ 233 $ 650 $ 550 All intersegment sales are eliminated and are not included in the Comp |
