DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 30, 2015 | Jul. 31, 2015 | Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CLOROX CO /DE/ | ||
Entity Central Index Key | 21,076 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 13.7 | ||
Entity Common Stock, Shares Outstanding | 128,643,834 |
CONSOLIDATED STATEMENT OF EARNI
CONSOLIDATED STATEMENT OF EARNINGS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
CONSOLIDATED STATEMENTS OF EARNINGS [Abstract] | |||
Net sales | $ 5,655 | $ 5,514 | $ 5,533 |
Cost of products sold | 3,190 | 3,158 | 3,142 |
Gross profit | 2,465 | 2,356 | 2,391 |
Selling and administrative expenses | 798 | 751 | 793 |
Advertising costs | 523 | 503 | 498 |
Research and development costs | 136 | 125 | 130 |
Interest expense | 100 | 103 | 122 |
Other income, net | (13) | (10) | (4) |
Earnings from continuing operations before income taxes | 921 | 884 | 852 |
Income taxes on continuing operations | 315 | 305 | 279 |
Earnings from continuing operations | 606 | 579 | 573 |
Losses from discontinued operations, net of tax | (26) | (21) | (1) |
Net earnings | $ 580 | $ 558 | $ 572 |
Net earnings (losses) per share, Basic | |||
Continuing operations | $ 4.65 | $ 4.47 | $ 4.37 |
Discontinued operations | (0.20) | (0.16) | 0 |
Basic net earnings per share | 4.45 | 4.31 | 4.37 |
Net earnings (losses) per share, Diluted | |||
Continuing operations | 4.57 | 4.39 | 4.31 |
Discontinued operations | (0.20) | (0.16) | (0.01) |
Diluted net earnings per share | $ 4.37 | $ 4.23 | $ 4.30 |
Weighted average shares outstanding (in thousands) | |||
Basic | 130,310 | 129,558 | 131,075 |
Diluted | 132,776 | 131,742 | 132,969 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Earnings from continuing operations | $ 606 | $ 579 | $ 573 |
Losses from discontinued operations, net of tax | (26) | (21) | (1) |
Net earnings | 580 | 558 | 572 |
Other comprehensive (losses) income: | |||
Foreign currency adjustments, net of tax | (54) | (37) | (11) |
Net unrealized (losses) gains on derivatives, net of tax | (14) | (9) | 3 |
Pension and postretirement benefit adjustments, net of tax | (17) | (4) | 37 |
Total other comprehensive (losses) income, net of tax | (85) | (50) | 29 |
Comprehensive income | $ 495 | $ 508 | $ 601 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets | ||
Cash and cash equivalents | $ 382 | $ 329 |
Receivables, net | 519 | 546 |
Inventories, net | 385 | 386 |
Other current assets | 143 | 134 |
Total current assets | 1,429 | 1,395 |
Property, plant and equipment, net | 918 | 977 |
Goodwill | 1,067 | 1,101 |
Trademarks, net | 535 | 547 |
Other intangible assets, net | 50 | 64 |
Other assets | 165 | 174 |
Total assets | 4,164 | 4,258 |
Current liabilities | ||
Notes and loans payable | 95 | 143 |
Current maturities of long-term debt | 300 | 575 |
Accounts payable | 431 | 440 |
Accrued liabilities | 548 | 472 |
Income taxes payable | 31 | 8 |
Total current liabilities | 1,405 | 1,638 |
Long-term debt | 1,796 | 1,595 |
Other liabilities | 750 | 768 |
Deferred income taxes | 95 | 103 |
Total liabilities | $ 4,046 | $ 4,104 |
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; 158,741,461 shares issued at June 30, 2015 and 2014; and 128,614,310 and 128,796,228 shares outstanding at June 30, 2015 and 2014, respectively | 159 | 159 |
Additional paid-in capital | 775 | 709 |
Retained earnings | 1,923 | 1,739 |
Treasury shares, at cost: 30,127,151 and 29,945,233 shares at June 30, 2015 and 2014, respectively | (2,237) | (2,036) |
Accumulated other comprehensive net loss | (502) | (417) |
Stockholders' equity | 118 | 154 |
Total liabilities and stockholders' equity | $ 4,164 | $ 4,258 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2015 | Jun. 30, 2014 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
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 | 128,614,310 | 128,796,228 |
Treasury stock, shares | 30,127,151 | 29,945,233 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Shares [Member] | Accumulated Other Comprehensive Net (Losses) Income [Member] | Total |
Balance, amount at Jun. 30, 2012 | $ 159 | $ 633 | $ 1,350 | $ (1,881) | $ (396) | $ (135) |
Balance, shares at Jun. 30, 2012 | 158,741 | (29,179) | ||||
Net earnings | 572 | 572 | ||||
Other comprehensive (loss) income | 29 | 29 | ||||
Accrued dividends | (348) | (348) | ||||
Stock-based compensation | 35 | 35 | ||||
Other employee stock plan activities, amount | (7) | (13) | $ 141 | 121 | ||
Other employee stock plan activities, shares | 2,304 | |||||
Treasury stock purchased, amount | $ (128) | (128) | ||||
Treasury stock purchased, shares | (1,500) | |||||
Balance, amount at Jun. 30, 2013 | $ 159 | 661 | 1,561 | $ (1,868) | (367) | 146 |
Balance, shares at Jun. 30, 2013 | 158,741 | (28,375) | ||||
Net earnings | 558 | 558 | ||||
Other comprehensive (loss) income | (50) | (50) | ||||
Accrued dividends | (374) | (374) | ||||
Stock-based compensation | 36 | 36 | ||||
Other employee stock plan activities, amount | 12 | (6) | $ 92 | 98 | ||
Other employee stock plan activities, shares | 1,476 | |||||
Treasury stock purchased, amount | $ (260) | (260) | ||||
Treasury stock purchased, shares | (3,046) | |||||
Balance, amount at Jun. 30, 2014 | $ 159 | 709 | 1,739 | $ (2,036) | (417) | 154 |
Balance, shares at Jun. 30, 2014 | 158,741 | (29,945) | ||||
Net earnings | 580 | 580 | ||||
Other comprehensive (loss) income | (85) | (85) | ||||
Accrued dividends | (391) | (391) | ||||
Stock-based compensation | 32 | 32 | ||||
Other employee stock plan activities, amount | 34 | (5) | $ 233 | 262 | ||
Other employee stock plan activities, shares | (4,198) | |||||
Treasury stock purchased, amount | $ (434) | (434) | ||||
Treasury stock purchased, shares | 4,016 | |||||
Balance, amount at Jun. 30, 2015 | $ 159 | $ 775 | $ 1,923 | $ (2,237) | $ (502) | $ 118 |
Balance, shares at Jun. 30, 2015 | 158,741 | (30,127) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Operating activities: | |||
Net earnings | $ 580 | $ 558 | $ 572 |
Deduct: Losses from discontinued operations, net of tax | (26) | (21) | (1) |
Earnings from continuing operations | 606 | 579 | 573 |
Adjustments to reconcile earnings from continuing operations to net cash provided by continuing operations: | |||
Depreciation and amortization | 169 | 177 | 180 |
Stock-based compensation | 32 | 36 | 35 |
Deferred income taxes | (16) | (21) | (8) |
Settlement of interest rate forward contracts | (25) | 0 | 0 |
Other | (17) | 6 | 20 |
Changes in: | |||
Receivables, net | 6 | 20 | (10) |
Inventories, net | (25) | 1 | (11) |
Other current assets | 6 | 5 | 12 |
Accounts payable and accrued liabilities | 93 | (12) | (29) |
Income taxes payable | 29 | (5) | 18 |
Net cash provided by continuing operations | 858 | 786 | 780 |
Net cash provided by (used for) discontinued operations | 16 | (19) | (5) |
Net cash provided by operations | 874 | 767 | 775 |
Investing activities: | |||
Capital expenditures | (125) | (137) | (190) |
Proceeds from sale-leasebacks, net of transaction costs | 0 | 0 | 135 |
Other | 19 | 0 | 4 |
Net cash used for investing activities from continuing operations | (106) | (137) | (51) |
Net cash used for investing activities by discontinued operations | 0 | (1) | (4) |
Net cash used for investing activities | (106) | (138) | (55) |
Financing activities: | |||
Notes and loans payable, net | (48) | (60) | (98) |
Long-term debt borrowings, net of issuance costs | 495 | 0 | 593 |
Long-term debt repayments | (575) | 0 | (850) |
Treasury stock purchased | (434) | (260) | (128) |
Cash dividends paid | (385) | (368) | (335) |
Issuance of common stock for employee stock plans and other | 251 | 96 | 133 |
Net cash used for financing activities | (696) | (592) | (685) |
Effect of exchange rate changes on cash and cash equivalents | (19) | (7) | (3) |
Net increase in cash and cash equivalents | 53 | 30 | 32 |
Cash and cash equivalents: | |||
Beginning of year | 329 | 299 | 267 |
End of year | 382 | 329 | 299 |
Supplemental cash flow information: | |||
Interest paid | 104 | 76 | 129 |
Income taxes paid, net of refunds | 236 | 312 | 263 |
Noncash financing activities: | |||
Cash dividends declared and accrued, but not paid | $ 99 | $ 95 | $ 93 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Basis of Presentation The Company is principally engaged in the production, marketing and sales of consumer products through mass retail outlets, e-commerce channels, distributors and medical supply distributors. The consolidated financial statements include the statements of the Company and its wholly owned and controlled subsidiaries. All significant intercompany transactions and accounts were eliminated in consolidation. Certain prior year reclassifications were made in the consolidated financial statements and related notes to the consolidated financial statements to conform to the current year presentation. Effective September 22, 2014, the Company's Venezuela affiliate, Corporación Clorox de Venezuela S.A. (Clorox Venezuela), discontinued its operations. Consequently, the Company reclassified the financial results of Clorox Venezuela as a discontinued operation in the consolidated financial statements for all periods presented herein. Use of Estimates The preparation of these consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) requires management to reach opinions as to estimates and assumptions that affect reported amounts and related disclosures. Specific areas requiring management's opinion on estimates and judgments include assumptions pertaining to accruals for consumer and trade-promotion programs, stock-based compensation costs, pension and post-employment benefit costs, future cash flows associated with impairment testing of goodwill and other long-lived assets, the credit worthiness of customers, uncertain tax positions, tax valuation allowances and legal, environmental and insurance matters. Actual results could materially differ from estimates and assumptions made. Cash and Cash Equivalents Cash equivalents consist of highly liquid instruments, time deposits and money market funds with an initial maturity at purchase of three months or less. The fair value of cash and cash equivalents approximates the carrying amount. The Company's cash position includes amounts held by foreign subsidiaries and, as a result, the repatriation of certain cash balances from some of the Company's foreign subsidiaries could result in additional tax costs in the United States and in certain foreign jurisdictions. However, these cash balances are generally available without legal restriction to fund local business operations. In addition, a portion of the Company's cash balance is held in U.S. dollars by foreign subsidiaries, whose functional currency is their local currency. Such U.S. dollar balances are reported on the foreign subsidiaries' books, in their functional currency, with the impact from foreign currency exchange rate differences recorded in other income, net. The Company's cash holdings were as follows as of June 30: 2015 2014 U.S. dollar balances held by U.S. dollar functional currency subsidiaries and at parent $ 221 $ 180 Non-U.S. dollar balances held by non-U.S. dollar functional currency subsidiaries 142 132 U.S. dollar balances held by non-U.S. dollar functional currency subsidiaries 19 12 Non-U.S. dollar balances held by U.S. dollar functional currency subsidiaries - 5 Total $ 382 $ 329 Inventories Inventories are stated at the lower of cost or market. When necessary, the Company provides allowances to adjust the carrying value of its inventory to the lower of cost or market, including any costs to sell or dispose. Appropriate consideration is given to obsolescence, excessive inventory levels, product deterioration and other factors in evaluating net realizable value for the purposes of determining the lower of cost or market. Property, Plant and Equipment and Finite-Lived Intangible Assets Property, plant and equipment and finite-lived intangible assets are stated at cost. Depreciation and amortization expense are calculated by the straight-line method using the estimated useful lives or lives determined by lease contracts for the related assets. The table below provides estimated useful lives of property, plant and equipment by asset classification. Estimated Useful Lives Buildings and leasehold improvements 10 40 Land improvements 10 30 Machinery and equipment 3 15 Computer equipment 3 5 Capitalized software costs 3 7 Property, plant and equipment and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances occur that indicate that the carrying amount of an asset (or asset group) may not be fully recoverable. The risk of impairment is initially assessed based on an estimate of the undiscounted cash flows at the lowest level for which identifiable cash flows exist. Impairment occurs when the book value of the asset exceeds the estimated future undiscounted cash flows generated by the asset. When impairment is indicated, an impairment charge is recorded for the difference between the book value of the asset and its estimated fair market value. Depending on the asset, estimated fair market value may be determined either by use of a discounted cash flow model or by reference to estimated selling values of assets in similar condition. Capitalization of Software Costs The Company capitalizes certain qualifying costs incurred in the acquisition and development of software for internal use, including the costs of the software, materials, consultants, interest and payroll and payroll-related costs for employees during the application development stage. Internal and external costs incurred during the preliminary project stage and post implementation-operation stage, mainly training and maintenance costs, are expensed as incurred. Once the application is substantially complete and ready for its intended use, qualifying costs are amortized on a straight-line basis over the software's useful life. Impairment Review of Goodwill and Indefinite-Lived Intangible Assets The Company tests its goodwill, trademarks with indefinite lives and other indefinite-lived intangible assets annually for impairment in the fiscal fourth quarter unless there are indications during a different interim period that these assets may have become impaired. With respect to goodwill, the Company has the option to first assess qualitative factors such as maturity and stability of the reporting unit, magnitude of excess fair value over book value from the prior year's impairment testing, other reporting unit specific operating results as well as new events and circumstances impacting the operations at the reporting unit level. If the result of a qualitative test indicates a potential for impairment of a reporting unit, a quantitative test is performed. The quantitative test is a two-step process. In the first step, the Company compares the estimated fair value of the reporting unit to its carrying value. In all instances, the estimated fair value exceeded the carrying value of the reporting unit. Had the estimated fair value of any reporting unit been less than its carrying value, the Company would have performed a second step to determine the implied fair value of the reporting unit's goodwill. If the carrying amount of a reporting unit's goodwill had exceeded its implied fair value, an impairment charge would have been recorded for the difference between the carrying amount and the implied fair value of the reporting unit's goodwill. To determine the fair value of a reporting unit as part of its quantitative test, the Company uses a discounted cash flow (DCF) approach, as it believes that this approach is the most reliable indicator of the fair value of its businesses and the fair value of their future earnings and cash flows. Under this approach, the Company estimates the future cash flows of each reporting unit and discounts these cash flows at a rate of return that reflects their relative risk. The cash flows used in the DCF are consistent with those the Company uses in its internal planning, which gives consideration to actual business trends experienced, and the broader business strategy for the long term. The other key estimates and factors used in the DCF include, but are not limited to, future sales volumes, revenue and expense growth rates, changes in working capital, foreign exchange rates, currency devaluation, inflation and a perpetuity growth rate. Changes in such estimates or the application of alternative assumptions could produce different results. For trademarks and other intangible assets with indefinite lives, the Company performs a quantitative analysis to test for impairment and compares the estimated fair value of an asset to its carrying amount. If the carrying amount of such asset exceeds its estimated fair value, an impairment charge is recorded for the difference between the carrying amount and the estimated fair value. The Company uses the income approach to estimate the fair value of its trademarks and other intangible assets with indefinite lives. This approach requires significant judgments in determining both the assets' estimated cash flows as well as the appropriate discount and foreign exchange rates applied to those cash flows to determine fair value. Changes in such estimates or the use of alternative assumptions could produce different results. Stock-based Compensation The Company grants various nonqualified stock-based compensation awards to eligible employees, including stock options and performance units. For stock options, the Company estimates the fair value of each award on the date of grant using the Black-Scholes valuation model, which requires management to make estimates regarding expected option life, stock price volatility and other assumptions. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The Company estimates stock option forfeitures based on historical data for each employee grouping. The total number of stock options expected to vest is adjusted by actual and estimated forfeitures. Changes to the actual and estimated forfeitures will result in a cumulative catch-up adjustment in the period of change. Compensation expense is recorded by amortizing the grant date fair values on a straight-line basis over the vesting period, adjusted for estimated forfeitures. The Company's performance unit grants provide for the issuance of common stock to certain managerial staff and executive management if the Company achieves specified performance targets. The performance period is three 150 Cash flows resulting from tax deductions in excess of the cumulative compensation cost recognized for stock-based payment arrangements (excess tax benefits) are primarily classified as financing cash inflows. Employee Benefits The Company accounts for its defined benefit retirement income and retirement health care plans using actuarial methods . 5 The Company recognizes an actuarial-based obligation at the onset of disability for certain benefits provided to individuals after employment, but before retirement, that include medical, dental, vision, life and other benefits. Environmental Costs The Company is involved in certain environmental remediation and ongoing compliance activities. Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and based upon a reasonable estimate of the liability. The Company's accruals reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information become available. Actual costs to be incurred at identified sites in future periods may vary from the estimates, given the inherent uncertainties in evaluating environmental exposures. The accrual for environmental matters is included in Other liabilities in the Company's consolidated balance sheets on an undiscounted basis due to uncertainty regarding the timing of future payments. Revenue Recognition Sales are recognized as revenue when the risk of loss and title pass to the customer and when all of the following have occurred: a firm sales arrangement exists, pricing is fixed or determinable and collection is reasonably assured. Sales are recorded net of allowances for returns, trade promotions, coupons and other discounts. The Company routinely commits to one-time or ongoing trade-promotion programs with customers and consumer coupon programs that require the Company to estimate and accrue the expected costs of such programs. Programs include shelf price reductions, end-of-aisle or in-store displays of the Company's products and graphics and other trade-promotion activities conducted by the customer. Coupons are recognized as a liability when distributed based upon expected consumer redemptions. The Company maintains liabilities related to these programs for the estimated expenses incurred, but not paid, at the end of each period. Trade-promotion and coupon redemption costs are recorded as a reduction of sales. The Company provides an allowance for doubtful accounts based on its historical experience and ongoing assessment of its customers' credit risk. Receivables were presented net of an allowance for doubtful accounts of $ 4 3 12 15 Cost of Products Sold Cost of products sold represents the costs directly related to the manufacture and distribution of the Company's products and primarily includes raw materials, packaging, contract packer fees, shipping and handling, warehousing, package design, depreciation, amortization, direct and indirect labor and operating costs for the Company's manufacturing and distribution facilities including salary, benefit costs and incentive compensation, and royalties and amortization related to the Company's Glad Venture Agreement (see Note 9). Costs associated with developing and designing new packaging are expensed as incurred and include design, artwork, films and labeling. Expenses for fiscal years ended June 30, 2015, 2014 and 2013 were $ 11 12 10 Selling and Administrative Expenses Selling and administrative expenses represent costs incurred by the Company in generating revenues and managing the business and include market research, commissions and certain administrative expenses. Administrative expenses include salary, benefits, incentive compensation, professional fees and services, software and licensing fees and other operating costs associated with the Company's non-manufacturing, non-research and development staff, facilities and equipment. Advertising and Research and Development Costs The Company expenses advertising and research and development costs in the period incurred. Income Taxes The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the anticipated future tax consequences attributable to differences between financial statement amounts and their respective tax bases. Management reviews the Company's deferred tax assets to determine whether their value can be realized based upon available evidence. A valuation allowance is established when management believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the Company's tax provision in the period of change. In addition to valuation allowances, the Company provides for uncertain tax positions when such tax positions do not meet certain recognition thresholds or measurement standards. Amounts for uncertain tax positions are adjusted in quarters when new information becomes available or when positions are effectively settled. U.S. income tax expense and foreign withholding taxes are provided on unremitted foreign earnings that are not indefinitely reinvested at the time the earnings are generated. Where foreign earnings are indefinitely reinvested, no provision for U.S. income or foreign withholding taxes is made. When circumstances change and the Company determines that some or all of the undistributed earnings will be remitted in the foreseeable future, the Company accrues an expense in the current period for U.S. income taxes and foreign withholding taxes attributable to the anticipated remittance. Foreign Currency Transactions and Translation Local currencies are the functional currencies for substantially all of the Company's foreign operations. When the transactional currency is different than the functional currency, transaction gains and losses are included as a component of other income, net. In addition, certain assets and liabilities denominated in currencies different than a foreign subsidiary's functional currency are reported on the subsidiary's books in its functional currency, with the impact from exchange rate differences recorded in other income, net. Assets and liabilities of foreign operations are translated into U.S. dollars using the exchange rates in effect at the balance sheet date, while income and expenses are translated at the average monthly exchange rates during the year. Gains and losses on foreign currency translations are reported as a component of other comprehensive income. Deferred taxes are not provided on cumulative translation adjustments where the Company expects earnings of a foreign subsidiary to be indefinitely reinvested. The income tax effect of currency translation adjustments related to foreign subsidiaries and joint ventures for which earnings are not considered indefinitely reinvested is recorded as a component of deferred taxes with an offset to other comprehensive income. Derivative Instruments The Company's use of derivative instruments, principally swaps, futures and forward contracts, is limited to non-trading purposes and is designed to partially manage exposure to changes in commodity prices, interest rates and foreign currencies. The Company's contracts are hedges for transactions with notional amounts and periods consistent with the related exposures and do not constitute investments independent of these exposures. The changes in the fair value (i.e., gains or losses) of a derivative instrument are recorded as either assets or liabilities in the consolidated balance sheets with an offset to net earnings or other comprehensive income depending on whether, for accounting purposes, it has been designated and qualifies as an accounting hedge and, if so, on the type of hedging relationship. The criteria used to determine if hedge accounting treatment is appropriate are: (a) formal designation and documentation of the hedging relationship, the risk management objective and hedging strategy at hedge inception; (b) eligibility of hedged items, transactions and corresponding hedging instrument; and (c) effectiveness of the hedging relationship both at inception of the hedge and on an ongoing basis in achieving the hedging objectives. For those derivative instruments designated and qualifying as hedging instruments, the Company must designate the hedging instrument either as a fair value hedge or as a cash flow hedge. The Company designates its commodity forward and future contracts for forecasted purchases of raw materials, interest rate forward contracts for forecasted interest payments, and foreign currency forward contracts for forecasted purchases of inventory as cash flow hedges. During the fiscal years ended June 30, 2015, 2014 and 2013, the Company had no hedging instruments designated as fair value hedges. For derivative instruments designated and qualifying as cash flow hedges, the effective portion of gains or losses is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. From time to time, the Company may have contracts not designated as hedges for accounting purposes, for which it recognizes changes in the fair value in other income, net. Cash flows from hedging activities are classified as operating activities in the consolidated statements of cash flows. The Company de-designates cash flow hedge relationships when it determines that the hedge relationships are no longer highly effective or that the forecasted transaction is no longer probable. Upon de-designation of a hedge, the portion of gains or losses on the derivative instrument that was previously accumulated in other comprehensive income remains in accumulated other comprehensive income until the forecasted transaction is recognized in net earnings, or is recognized in net earnings immediately if it is determined that there is any ineffectiveness or the forecasted transaction is no longer probable. The Company uses different methodologies, when necessary, to estimate the fair value of its derivative contracts. The estimated fair values of the majority of the Company's contracts are based on quoted market prices, traded exchange market prices, or broker price quotations, and represent the estimated amounts that the Company would pay or receive to terminate the contracts. Recently Issued Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, “Simplifying the Presentation of Debt Issuance Cost,” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of ASU 2015-03 will have on its consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis,” which changes the guidance for evaluating whether to consolidate certain legal entities. The amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of ASU 2015-02 will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which replaces most existing U.S. GAAP revenue recognition guidance and is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers, including information about significant judgments and changes in judgments. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with the option to early adopt in the first quarter of fiscal year 2018. The Company is currently evaluating the impact that adoption of ASU 2014-09 will have on its consolidated financial statements. In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (Topic 205),” which will change the criteria for reporting discontinued operations. The amendments will also require new disclosures about discontinued operations and disposals of components of an entity that do not qualify for discontinued operations reporting. The amendments are effective for the Company for new disposals (or classifications as held for sale) of components of the Company, should they occur, beginning in the first quarter of fiscal year 2016. Early adoption is permitted for disposals (or classifications as held for sale) that have not been previously reported. The Company will adopt this ASU beginning in the first quarter of fiscal year 2016, as required. Adoption of the new standard will not impact the Company's reporting or disclosures for discontinued operations of Clorox Venezuela |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Jun. 30, 2015 | |
DISCONTINUED OPERATIONS [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 2. DISCONTINUED OPERATIONS On September 22, 2014, Clorox Venezuela announced that it was discontinuing its operations, effective immediately, and seeking to sell its assets. Since fiscal year 2012, Clorox Venezuela was required to sell more than two thirds of its products at prices frozen by the Venezuelan government. During this same period, Clorox Venezuela experienced successive years of hyperinflation resulting in significant sustained increases in its input costs, including packaging, raw materials, transportation and wages. As a result, Clorox Venezuela had been selling its products at a loss, resulting in ongoing operating losses. Clorox Venezuela repeatedly met with government authorities in an effort to help them understand the rapidly declining state of the business, including the need for immediate, significant and ongoing price increases and other critical remedial actions to address these adverse impacts. Based on the Venezuelan government's representations, Clorox Venezuela had expected significant price increases would be forthcoming much earlier; however, the price increases subsequently approved were insufficient and would have caused Clorox Venezuela to continue operating at a significant loss into the foreseeable future. As such, Clorox Venezuela was no longer financially viable and was forced to discontinue its operations. On September 26, 2014, the Company reported that Venezuelan Vice President Jorge Arreaza announced, with endorsement by President With this exit, the financial results of Clorox Venezuela are reflected as discontinued operations in the Company's consolidated financial statements. The results of Clorox Venezuela have historically been part of the International reportable segment. Net sales for Clorox Venezuela were $ 11 77 90 The following table provides a summary of (losses) gains from discontinued operations for Clorox Venezuela and gains (losses) from discontinued operations other than Clorox Venezuela for the years ended June 30: 2015 2014 2013 Operating (losses) earnings from Clorox Venezuela before income taxes $ (6 ) $ (23 ) $ 1 Exit costs and other related expenses for Clorox Venezuela (78 ) - - Total losses from Clorox Venezuela before income taxes (84 ) (23 ) 1 Income tax benefit attributable to Clorox Venezuela 29 6 - Total (losses) gains from Clorox Venezuela, net of tax (55 ) (17 ) 1 Gains (losses) from discontinued operations other than Clorox Venezuela, net of tax 29 (4 ) (2 ) Losses from discontinued operations, net of tax $ (26 ) $ (21 ) $ (1 ) Unrelated to Clorox Venezuela, in the fiscal year ended June 30, 2015, $ 32 Summary of Operating Losses, Asset Charges and Other Costs The following provides a breakdown of (losses) gains from discontinued operations for Clorox Venezuela and gains from discontinued operations other than Clorox Venezuela for the fiscal year ended June 30: 2015 Operating losses from Clorox Venezuela before income taxes $ (6 ) Net asset charges: Inventories (11 ) Property, plant and equipment (16 ) Trademark and other intangible assets (6 ) Other assets (2 ) Other exit and business termination costs: Severance (3 ) Recognition of deferred foreign currency translation loss (30 ) Other (10 ) Total losses from Clorox Venezuela before income taxes (84 ) Income tax benefit attributable to Clorox Venezuela 29 Total losses from Clorox Venezuela, net of tax (55 ) Gains from discontinued operations other than Clorox Venezuela, net of tax 29 Losses from discontinued operations, net of tax $ (26 ) Prior to Clorox Venezuela being consolidated under the rules governing the preparation of financial statements in a highly inflationary economy, cumulative translation gains (losses) were included as a component of accumulated other comprehensive net (losses) income. The charge of $ 30 Goodwill related to Clorox Venezuela was previously aggregated and assessed for impairment at the Latin America reporting unit level, which is a component of the Company's International segment. In the first quarter of fiscal year 2015, after Clorox Venezuela discontinued its operations, the Company reviewed the relative fair value of its components of the Latin America reporting unit and concluded that no goodwill should be allocated to the Clorox Venezuela component and that there were no indicators of impairment within the remaining Latin America reporting unit. Based on the results of the annual impairment test performed in the fourth quarter of fiscal year 2015, the fair value of the Latin America reporting unit exceeded its recorded value by approximately 79 Financial Reporting: Hyperinflation and the Selection of Exchange Rates Due to a sustained inflationary environment, the financial statements of Clorox Venezuela are consolidated under the rules governing the preparation of financial statements in a highly inflationary economy. As such, Clorox Venezuela's non-U.S. dollar (non-USD) monetary assets and liabilities were remeasured into U.S. dollars (USD) each reporting period with the resulting gains and losses now reflected in discontinued operations. Subsequent to Clorox Venezuela discontinuing operations in September 2014, the Venezuelan government has continued to evolve its currency exchange mechanisms; however, these changes have not had a material impact on the Company's financial results because the balance of net bolivar assets and liabilities on the local books of Clorox Venezuela was $ 0 42 13 17 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2015 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 3 . INVENTORIES Inventories consisted of the following as of June 30: 2015 2014 Finished goods $ 316 $ 312 Raw materials and packaging 101 108 Work in process 3 2 LIFO allowances (35 ) (36 ) Total $ 385 $ 386 The last-in, first-out (LIFO) method was used to value approximately 38 34 0 2 3 The Company had inventory consigned to others of $ 2 4 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Jun. 30, 2015 | |
OTHER CURRENT ASSETS [Abstract] | |
OTHER CURRENT ASSETS | NOTE 4 . OTHER CURRENT ASSETS Other current assets consisted of the following as of June 30: 2015 2014 Deferred tax assets $ 99 $ 81 Prepaid expenses 39 42 Other 5 11 Total $ 143 $ 134 As of June 30, 2015 and 2014, Other in the table above included $ 3 9 3 3 0 5 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2015 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 5 . PROPERTY, PLANT AND EQUIPMENT, NET The components of property, plant and equipment, net, consisted of the following as of June 30: 2015 2014 Machinery and equipment $ 1,608 $ 1,593 Buildings 515 506 Capitalized software costs 371 374 Land and improvements 122 122 Construction in progress 65 79 Computer equipment 76 79 2,757 2,753 Less: accumulated depreciation and amortization (1,839 ) (1,776 ) Total $ 918 $ 977 Included in Machinery and equipment above are $ 12 0 2 0 Included in Land and improvements above are $ 2 0 two 2 Depreciation and amortization expense related to property, plant and equipment, net, was $ 157 161 162 19 22 21 Non-cash capital expenditures were $ 18 0 0 |
GOODWILL, TRADEMARKS AND OTHER
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2015 | |
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS | NOTE 6 . GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill by reportable segment for the fiscal years ended June 30, 2015 and 2014, were as follows: Goodwill Cleaning Lifestyle Household International Total Balance June 30, 2013 $ 323 $ 244 $ 85 $ 453 $ 1,105 Effect of foreign currency translation - - - (4 ) (4 ) Balance June 30, 2014 323 244 85 449 1,101 Effect of foreign currency translation - - - (34 ) (34 ) Balance June 30, 2015 $ 323 $ 244 $ 85 $ 415 $ 1,067 During the fourth quarter of fiscal years 2015, 2014 and 2013, the Company completed its annual impairment tests of goodwill and no instances of impairment were identified. The changes in the carrying amount of trademarks and other intangible assets for the fiscal years ended June 30, 2015 and 2014, were as follows: As of June 30, 2015 As of June 30, 2014 Gross carrying amount Accumulated amortization Net carrying amount Gross Accumulated amortization Net carrying amount Trademarks not subject to amortization $ 524 $ - $ 524 $ 533 $ - $ 533 Trademarks subject to amortization 33 22 11 36 22 14 Other intangible assets: Technology and product formulae 137 133 4 139 129 10 Other 188 142 46 194 140 54 Total $ 882 $ 297 $ 585 $ 902 $ 291 $ 611 Amortization expense relating to our intangible assets was $ 12 15 15 8 8 7 7 6 In the first quarter of fiscal year 2015, the Company recorded impairment of trademarks and other intangible assets of $ 6 In fiscal year 2014, as a result of the effective devaluation of the Venezuelan currency in the third quarter, the Company assessed whether recorded values of intangible assets attributable to the Venezuela subsidiary and goodwill of the reporting unit that included Venezuela were impaired. As a result of its assessment, the Company identified indications of impairment and recorded noncash tax deductible impairment charges on trademark values totaling $ 4 In fiscal year 2014, the Company entered into an exclusivity agreement with a manufacturer. In connection with the agreement, the Company recorded an Other intangible asset valued at $ 4 7 3 During the fourth quarter of fiscal years 2015, 2014 and 2013, the Company completed its annual impairment tests of indefinite-lived intangible assets and no instances of impairment were identified. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Jun. 30, 2015 | |
ACCRUED LIABILITIES [Abstract] | |
ACCRUED LIABILITIES | NOTE 7 . ACCRUED LIABILITIES Accrued liabilities consisted of the following as of June 30: 2015 2014 Compensation and employee benefit costs $ 189 $ 102 Trade and sales promotion 115 113 Dividends 103 100 Royalties 16 11 Insurance 15 18 Interest 14 27 Derivatives 8 17 Other 88 84 Total $ 548 $ 472 |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2015 | |
DEBT [Abstract] | |
DEBT | NOTE 8 . DEBT Notes and loans payable, which mature in less than one year, included the following as of June 30: 2015 2014 Commercial paper $ 93 $ 141 Foreign borrowings 2 2 Total $ 95 $ 143 The weighted average interest rates incurred on average outstanding notes and loans payable during the fiscal years ended June 30, 2015, 2014 and 2013, including fees associated with the Company's undrawn revolving credit facility, were 2.05 0.97 1.68 0.39 0.28 Long-term debt, carried at face value net of unamortized discounts or premiums, included the following as of June 30: 2015 2014 Senior unsecured notes and debentures: 5.00 575 $ - $ 575 3.55 300 300 300 5.95 400 399 399 3.80 300 298 298 3.05 600 599 598 3.50 500 500 - Total 2,096 2,170 Less: Current maturities of long-term debt (300 ) (575 ) Long-term debt $ 1,796 $ 1,595 The weighted average interest rates incurred on average outstanding long-term debt during the fiscal years ended June 30, 2015, 2014 and 2013, were 4.44 4.56 4.76 4.31 4.56 In January 2015, $ 575 5.00 In December 2014, under a shelf registration statement filed with the SEC that will expire in December 2017, the Company issued $ 500 3.50 4.10 In March 2013, $ 500 5.00 In October 2012, $ 350 5.45 600 3.05 September 15, 2022 The Company's borrowing capacity under other financing arrangements as of June 30 was as follows: 2015 2014 Revolving credit facility $ 1,100 $ 1,100 Foreign credit lines 11 31 Other credit lines 18 13 Total $ 1,129 $ 1,144 As of June 30, 2015, the Company had a $ 1,100 greement (the Credit Agreement), which expires in October 2019 1,100 Of the $ 29 4 25 44 5 39 7 1 Long-term debt maturities as of June 30, 2015, are $ 300 0 400 0 0 1,400 |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Jun. 30, 2015 | |
OTHER LIABILITIES [Abstract] | |
OTHER LIABILITIES | NOTE 9 . OTHER LIABILITIES Other liabilities consisted of the following as of June 30: 2015 2014 Employee benefit obligations $ 299 $ 289 Venture agreement net terminal obligation 294 290 Taxes 38 76 Other 119 113 Total $ 750 $ 768 Venture Agreement The Company has an agreement with The Procter & Gamble Company (P&G) for its Glad ® 20 ® The agreement, entered into in 2003, has a 20 10 ® ® Deferred Gain on Sale-leaseback Transaction In December 2012, the Company completed a sale-leaseback transaction under which it sold its general office building in Oakland, Calif. to an unrelated third party for net proceeds of $ 108 15 40 43 |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2015 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | NOTE 10 . FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Financial assets and liabilities measured at fair value on a recurring basis in the 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 June 30, 2015 and 2014, 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 all classified as Level 2, and trust assets to fund certain of the Company's nonqualified deferred compensation plans, which were classified as Level 1. Financial Risk Management and Derivative Instruments The Company is exposed to certain commodity, interest rate and foreign currency risks related to its ongoing business operations and uses derivative instruments to mitigate its exposure to these risks. Commodity Price Risk Management The Company may use commodity exchange traded futures and over-the-counter swap contracts to fix the price of a portion of its forecasted raw material requirements. Contract maturities, which are generally no longer than 2 As of June 30, 2015, the notional amount of commodity derivatives was $ 47 27 20 36 19 17 Interest Rate Risk Management The Company may enter into over-the-counter interest rate forward contracts to fix a portion of the benchmark interest rate prior to the anticipated issuance of fixed rate debt. These interest rate forward contracts generally have durations of less than 12 months. The interest rate contracts are measured at fair value using information quoted by U.S. government bond dealers. As of June 30, 2015 and 2014, the notional amount of interest rate forward contracts was $ 0 288 During fiscal year 2015, the Company paid $ 25 500 10 Foreign Currency Risk Management The Company may also enter into certain over-the-counter foreign currency-related derivative contracts to manage a portion of the Company's forecasted foreign currency exposure associated with the purchase of inventory and certain intercompany transactions. These foreign currency contracts generally have durations of no longer than 16 The notional amounts of outstanding foreign currency forward contracts used by the Company's subsidiaries in Canada, Australia and New Zealand to hedge forecasted purchases of inventory were $ 64 35 6 54 28 5 Counterparty Risk Management 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 $ 8 17 8 11 Certain terms of the agreements governing the Company's over-the-counter derivative instruments require the credit ratings, as assigned by Standard & Poor's and Moody's to the Company and its counterparties, to remain at a level equal to or better than the minimum of an investment grade credit rating. If the Company's credit ratings were to fall below investment grade, the counterparties to the derivative instruments could request full collateralization on derivative instruments in net liability positions. As of both June 30, 2015 and 2014, the Company and each of its counterparties had been assigned investment grade ratings by both Standard & Poor's and Moody's. Certain of the Company's exchange-traded futures contracts used for commodity price risk management include requirements for the Company to post collateral in the form of a cash margin account held by the Company's broker for trades conducted on that exchange. As of June 30, 2015 and June 30, 2014, the Company maintained cash margin balances related to exchange-traded futures contracts of $ 2 1 Fair Value of Financial Instruments The following table summarizes the Company's assets and liabilities that were measured at fair value in the consolidated balance sheets as of June 30:: 2015 2014 Balance sheet classification Fair value Carrying Estimated Carrying Estimated Assets Investments including money market funds (a) Cash and cash 1 $ 212 $ 212 $ 150 $ 150 Time deposits (a) Cash and cash 2 84 84 75 75 Foreign exchange derivative contracts Other current assets 2 1 1 - - Interest rate contracts Other current assets 2 - - - - Commodity purchase derivative contracts Other current assets 2 - - 1 1 Trust assets for nonqualified deferred compensation plans Other assets 1 38 38 31 31 $ 335 $ 335 $ 257 $ 257 Liabilities Commodity purchase derivative contracts Accrued liabilities 2 $ 8 $ 8 $ 1 $ 1 Interest rate derivative contracts Accrued liabilities 2 - - 13 13 Foreign exchange derivative contracts Accrued liabilities 2 - - 3 3 Commodity purchase derivative contracts Other liabilities 2 - - - - Notes and loans payable (b) Notes and loans 2 95 95 143 143 Long-term debt (c) Other liabilities 2 2,096 2,137 2,170 2,265 $ 2,199 $ 2,240 $ 2,330 $ 2,425 (a) 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 equivalents are recorded at cost, which approximates fair value. (b) Short-term debt is composed of U.S. commercial paper and/or other similar short-term debts issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value. (c) Long-term debt, which is recorded at cost, includes the current portion of debt instruments, which approximates fair value. The fair value of long-term debt was determined using secondary market prices quoted by corporate bond dealers, and was classified as Level 2. Derivatives The Company designates its commodity forward and future contracts for forecasted purchases of raw materials, interest rate forward contracts for forecasted interest payments, and foreign currency forward contracts for forecasted purchases of inventory as cash flow hedges. The effects of derivative instruments designated as hedging instruments on other comprehensive net (losses) income and the consolidated statements of earnings and the consolidated statements of comprehensive income were as follows during the fiscal years ended June 30: Gains (losses) recognized in other comprehensive net loss Gains (losses) reclassified from accumulated other comprehensive net and recognized in earnings 2015 2014 2013 2015 2014 2013 Commodity purchase derivative contracts $ (13 ) $ 2 $ (1 ) $ (5 ) $ - $ - Interest rate derivative contracts (12 ) (13 ) (1 ) (5 ) (4 ) (3 ) Foreign exchange derivative contracts 7 (3 ) 3 3 4 - Total $ (18 ) $ (14 ) $ 1 $ (7 ) $ - $ (3 ) The gains (losses) reclassified from accumulated other comprehensive net (losses) income and recognized in earnings during the fiscal years ended June 30, 2015, 2014 and 2013, for commodity purchase and foreign exchange contracts were included in cost of products sold. The losses reclassified from accumulated other comprehensive net (losses) income and recognized in earnings during the fiscal years ended June 30, 2015, 2014 and 2013, for interest rate contracts were included in interest expense. The estimated amount of the existing net loss in accumulated other comprehensive net (losses) income as of June 30, 2015, which is expected to be reclassified into earnings within the next twelve 13 Trust Assets The Company has held interests in mutual funds and cash equivalents as part of trust assets related to certain of its nonqualified deferred compensation plans. 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 consolidated balance sheets. The interests in mutual funds are measured at fair value using quoted market prices. The Company has designated these marketable securities as trading investments. The participants in the deferred compensation plans 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 value of the trust assets related to certain of the Company's nonqualified deferred compensation plans increased by $ 7 |
OTHER CONTINGENCIES AND GUARANT
OTHER CONTINGENCIES AND GUARANTEES | 12 Months Ended |
Jun. 30, 2015 | |
OTHER CONTINGENCIES AND GUARANTEES [Abstract] | |
OTHER CONTINGENCIES AND GUARANTEES | NOTE 11 . OTHER CONTINGENCIES AND GUARANTEES Contingencies The Company is involved in certain environmental matters, including response actions at various locations. The Company had a recorded liability of $ 12 14 24.3 30 In October 2012, a Brazilian appellate court issued an adverse decision in a lawsuit pending in Brazil against the Company and one of its wholly owned subsidiaries, The Glad Products Company (Glad). The lawsuit, which was initially filed in a Brazilian lower court in 2002 by two Brazilian companies and one Uruguayan company (collectively, Petroplus), relates to joint venture agreements for the distribution of STP auto-care products in Brazil with three companies that became subsidiaries of the Company as a result of the Company's merger with First Brands Corporation in January 1999 (collectively, Clorox Subsidiaries). T he pending lawsuit seeks indemnification for damages and losses for alleged breaches of the joint venture agreements and abuse of economic power by the Company and Glad. Petroplus had previously unsuccessfully raised the same claims and sought damages from the Company and the Clorox Subsidiaries in an International Chamber of Commerce (ICC) arbitration proceeding in Miami, Florida, filed in 2001. The ICC arbitration panel unanimously ruled against Petroplus in a final decision in November 2003 (Final ICC Arbitration Award). The Final ICC Arbitration Award was ratified by the Superior Court of Justice of Brazil in May 2007 (Foreign Judgment), and the United States District Court for the Southern District of Florida subsequently confirmed the Final ICC Arbitration Award and recognized and adopted the Foreign Judgment as a judgment of the United States District Court for the Southern District of Florida (U.S. Judgment). Despite this, in March 2008, a Brazilian lower court ruled against the Company and Glad in the pending lawsuit. The value of the judgment against the Company, including interest and foreign exchange fluctuations as of June 30, 2015, was approximately $ 32 . Among other defenses, because the Final ICC Arbitration Award, the Foreign Judgment and the U.S. Judgment relate to the same claims as those in the pending lawsuit, the Company believes that Petroplus is precluded from re-litigating these claims. Based on the unfavorable appellate court decision, however, the Company believes that it is reasonably possible that a loss could be incurred in this matter in excess of amounts accrued, and that the estimated range of such loss in this matter is from $ 0 26 The Company continues to believe that its defenses are meritorious, and has appealed the decision to the highest courts of Brazil. In December 2013, in the first stage of the appellate process, the appellate court declined to admit the Company's appeals to the highest courts. The Company then appealed directly to the highest courts. While in May 2014 the Superior Court of Justice originally agreed to consider the Company's appeal, in December 2014 the same court declined to admit the appeal based on procedural grounds. The Company successfully appealed that decision and the court agreed to admit the appeal in March 2015. The appeal is currently pending and it is possible that a final decision in this case could be issued as early as the first quarter of fiscal year 2016. Expenses related to this litigation have been, and any potential additional loss would be, reflected in discontinued operations, consistent with the Company's classification of expenses related to its discontinued Brazil operations. In a separate action filed in 2004 by Petroplus, in January 2013, a lower Brazilian court nullified the Final ICC Arbitration Award. The Company believes this judgment is inconsistent with the Foreign Judgment and the U.S. Judgment and that it is without merit. The Company appealed this decision, and the lower court decision was overturned by the appellate court in April 2014. Petroplus has appealed this decision to Brazil's highest court. Glad and the Clorox Subsidiaries have also filed separate lawsuits against Petroplus alleging misuse of the STP trademark and related matters, which are currently pending before Brazilian courts, and have taken other legal actions against Petroplus, which are pending. Additionally, in November 2013, the Clorox Subsidiaries initiated a new ICC arbitration seeking damages against Petroplus. The Company is subject to various other lawsuits, claims and loss contingencies relating to issues such as contract disputes, product liability, patents and trademarks, advertising, commercial, administrative, employment claims and other matters. Based on management's analysis, 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. 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, individually or in the aggregate, on the Company's consolidated financial statements taken as a whole. The Company had not recorded any liabilities on the aforementioned indemnifications as of June 30, 2015 and 2014. As of June 30, 2015, the Company was a party to letters of credit of $ 11 0 |
LEASES AND OTHER COMMITMENTS
LEASES AND OTHER COMMITMENTS | 12 Months Ended |
Jun. 30, 2015 | |
LEASES AND OTHER COMMITMENTS [Abstract] | |
LEASES AND OTHER COMMITMENTS | NOTE 12 . LEASES AND OTHER COMMITMENTS The Company leases transportation and manufacturing equipment, certain information technology equipment and various manufacturing, warehousing, and office facilities. The majority of the Company's leases are classified as operating leases, and the Company's existing contracts will expire by 2027. The Company expects that, in the normal course of business, existing contracts will be renewed or replaced by other leases. Rental expense for all operating leases was $ 76 71 71 The future minimum annual lease commitments required under the Company's existing non-cancelable operating and capital lease agreements as of June 30, 2015, were as follows: Operating Capital Year leases leases 2016 $ 50 $ 3 2017 46 3 2018 42 2 2019 34 1 2020 29 - Thereafter 100 - Total $ 301 $ 9 Included within the future minimum lease commitments for operating leases disclosed above are future minimum rental payments required under the Company's existing non-cancelable lease agreements for the corporate headquarters and primary research and development facility as of June 30, 2015, in the amounts of 6 7 7 7 7 22 The Company is also a party to certain purchase obligations, which are defined as purchase agreements that are enforceable and legally binding and that contain specified or determinable significant terms, including quantity, price and the approximate timing of the transaction. Examples of the Company's purchase obligations include contracts to purchase raw materials, commitments to contract manufacturers, commitments for information technology and related services, advertising contracts, capital expenditure agreements, software acquisition and license commitments and service contracts. The Company enters into purchase obligations during the regular course of business based on expectations of future needs. Many of these purchase obligations contracts are short term in nature and are flexible to allow for changes in the Company's business and related requirements. As of June 30, 2015, the Company's purchase obligations totaled $ 176 57 37 30 7 0 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2015 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 13 . STOCKHOLDERS' EQUITY On May 13, 2013, the Company's board of directors terminated the share repurchase programs previously authorized on May 13, 2008, and May 18, 2011, and authorized a new share repurchase program for an aggregate purchase amount of up to $ 750 Share repurchases under authorized programs were as follows during the fiscal years ended June 30: 2015 2014 2013 Amount Shares Amount Shares Amount Shares Open-market purchase programs $ - - $ - - $ - - Evergreen Program 434 4,016 260 3,046 128 1,500 Total $ 434 4,016 $ 260 3,046 $ 128 1,500 2.99 2.87 2.63 2.96 2.84 2.56 Changes in accumulated other comprehensive net (losses) income by component were as follows for the fiscal years ended June 30: 2015 2014 2013 Foreign currency adjustments Other comprehensive (loss) income before reclassifications $ (92 ) $ (26 ) $ (16 ) Amounts reclassified from accumulated other comprehensive net losses: Recognition of deferred foreign currency translation loss 30 - - Income tax benefit (expense) 8 (11 ) 5 Foreign currency adjustments, net of tax $ (54 ) $ (37 ) $ (11 ) Net unrealized (losses) gains on derivatives Other comprehensive income (loss) before reclassifications $ (18 ) $ (15 ) $ 1 Amounts reclassified from accumulated other comprehensive net losses 7 - 3 Income tax (expense) benefit (3 ) 6 (1 ) Net unrealized (losses) gains on derivatives, net of tax $ (14 ) $ (9 ) $ 3 Pension and postretirement benefit adjustments Other comprehensive (loss) income before reclassifications $ (29 ) $ (16 ) $ 49 Amounts reclassified from accumulated other comprehensive net losses - 8 10 Income tax benefit (expense) 12 4 (22 ) Pension and postretirement benefit adjustments, net of tax $ (17 ) $ (4 ) $ 37 Total changes in other comprehensive (losses) income, net of tax $ (85 ) $ (50 ) $ 29 Included in foreign currency adjustments are re-measurement losses on long term intercompany loans where settlement is not planned or anticipated in the foreseeable future. For the fiscal years ended June 30, 2015, 2014 and 2013, other comprehensive losses on these loans totaled $ 9 12 1 no Pension and postretirement benefit reclassification adjustments are reflected in cost of products sold and selling and administrative expenses. |
NET EARNINGS PER SHARE (EPS)
NET EARNINGS PER SHARE (EPS) | 12 Months Ended |
Jun. 30, 2015 | |
NET EARNINGS PER SHARE (EPS) [Abstract] | |
NET EARNINGS PER SHARE (EPS) | NOTE 14 . NET EARNINGS PER SHARE (EPS) The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS: 2015 2014 2013 Basic 130,310 129,558 131,075 Dilutive effect of stock options and other 2,466 2,184 1,894 Diluted 132,776 131,742 132,969 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Jun. 30, 2015 | |
STOCK-BASED COMPENSATION PLANS [Abstract] | |
STOCK-BASED COMPENSATION PLANS | NOTE 15 . STOCK-BASED COMPENSATION PLANS In November 2012, the Company's stockholders voted to approve the amended and restated 2005 Stock Incentive Plan (the Plan). The Plan permits the Company to grant various nonqualified stock-based compensation awards, including stock options, restricted stock, performance units, deferred stock units, stock appreciation rights and other stock-based awards. The primary amendment reflected in the Plan was an increase of approximately 3 7 7 Compensation cost and the related income tax benefit recognized for stock-based compensation plans were classified as indicated below for the fiscal years ended June 30. 2015 2014 2013 Cost of products sold $ 4 $ 4 $ 4 Selling and administrative expenses 25 29 28 Research and development costs 3 3 3 Total compensation cost $ 32 $ 36 $ 35 Related income tax benefit $ 12 $ 13 $ 13 Cash received during fiscal years 2015, 2014 and 2013 from stock options exercised under all stock-based payment arrangements was $ 230 86 121 Details regarding the valuation and accounting for stock options, restricted stock awards, performance units and deferred stock units for non-employee directors follow. Stock Options The fair value of each stock option award granted during fiscal years 2015, 2014 and 2013 was estimated on the date of grant using the Black-Scholes valuation model and assumptions noted in the following table: 2015 2014 2013 Expected life 5.6 5.8 5.7 5.7 Weighted-average expected life 5.7 5.7 5.7 Expected volatility 16.3 18.6 18.4 18.5 18.7 19.2 Weighted-average volatility 16.6 18.5 19.1 Risk-free interest rate 1.4 2.0 1.8 1.9 0.6 0.8 Weighted-average risk-free interest rate 1.9 1.8 0.7 Dividend yield 2.8 3.4 3.4 3.2 3.6 Weighted-average dividend yield 3.3 3.4 3.6 The expected life of the stock options is based on observed historical exercise patterns. Groups of employees having similar historical exercise behavior are considered separately for valuation purposes. The Company estimates stock option forfeitures based on historical data for employee groups. The total number of stock options expected to vest is adjusted by actual and estimated forfeitures. The expected volatility is based on implied volatility from publicly traded options on the Company's stock at the date of grant, historical implied volatility of the Company's publicly traded options and other factors. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option. The dividend yield is based on the projected annual dividend payment per share, divided by the stock price at the date of grant. Details of the Company's stock option activities are summarized below: Weighted- Average Average Number of Exercise Remaining Aggregate Shares Price Contractual Intrinsic (In thousands) per Share Life Value Options outstanding as of June 30, 2014 10,368 $ 69 6 $ 232 Granted 1,895 91 Exercised (3,605) 64 Cancelled (301) 82 Options outstanding as of June 30, 2015 8,357 $ 76 7 $ 236 Options vested as of June 30, 2015 4,094 $ 68 5 $ 148 The weighted-average fair value per share of each option granted during fiscal years 2015, 2014 and 2013, estimated at the grant date using the Black-Scholes option pricing model, was $ 9.65 9.69 6.96 140 42 45 Stock option awards outstanding as of June 30, 2015, have been granted at prices that are equal to the market value of the stock on the date of grant. Stock option grants generally vest over four ten 17 one Restricted Stock Awards The fair value of restricted stock awards is estimated on the date of grant based on the market price of the stock and is amortized to compensation expense on a straight-line basis over the related vesting periods, which are generally three four As of June 30, 2015, there was $ 1 one 1 95.67 89.25 72.28 A summary of the status of the Company's restricted stock awards is presented below: Weighted-Average Number of Grant Date Shares Fair Value (In thousands) per Share Restricted stock awards as of June 30, 2014 21 $ 81 Granted 10 96 Vested (8) 78 Forfeited (5) 81 Restricted stock awards as of June 30, 2015 18 $ 91 Performance Units The Company's performance unit grants provide for the issuance of common stock to certain managerial staff and executive management if the Company achieves certain performance targets. The performance period is three The fair value of each grant issued is estimated on the date of grant based on the current market price of the stock. The total amount of compensation expense recognized reflects actual and estimated forfeitures, and the initial assumption that performance goals will be achieved. Compensation expense is adjusted, as necessary, on a quarterly basis based on management's assessment of the probability that performance goals will be achieved. If such goals are not met or it is determined that achievement of performance goals is not probable, any previously recognized compensation expense is adjusted in the current period to reflect the expected payout level. If it is determined that the performance goals will be exceeded, additional compensation expense is recognized, subject to a cap of 150 The number of shares issued will be dependent upon vesting and the achievement of specified performance targets. As of June 30, 2015, there was $ 16 one 89.75 84.45 72.11 A summary of the status of the Company's performance unit awards is presented below: Weighted-Average Number of Grant Date Shares Fair Value (In thousands) per Share Performance unit awards as of June 30, 2014 1,221 $ 73 Granted 332 90 Distributed (349) 68 Forfeited (81) 80 Performance unit awards as of June 30, 2015 1,123 $ 79 Perfomance units vested and deferred as of June 30, 2015 179 $ 58 The non-vested performance units outstanding as of June 30, 2015 and 2014, were 944,000 1,053,000 81.92 74.68 357,000 68.15 23 1 24 0 14 Deferred Stock Units for Nonemployee Directors Nonemployee directors receive annual grants of deferred stock units under the Company's director compensation program and can elect to receive all or a portion of their annual retainers and fees in the form of deferred stock units. The deferred stock units receive dividend distributions, which are reinvested as deferred stock units, and are recognized at their fair value on the date of grant. Each deferred stock unit represents the right to receive one share of the Company's common stock following the completion of a director's service. During fiscal year 2015, the Company granted 14,000 7,000 14,000 103.99 100.59 62.82 241,000 66.26 |
OTHER INCOME, NET
OTHER INCOME, NET | 12 Months Ended |
Jun. 30, 2015 | |
OTHER INCOME, NET [Abstract] | |
OTHER INCOME, NET | NOTE 16 . OTHER INCOME, NET The major components of other income, net, for the fiscal years ended June 30 were: 2015 2014 2013 Income from equity investees $ (14 ) $ (13 ) $ (12 ) Low income housing partnership gains, net (13 ) - (2 ) Interest income (4 ) (3 ) (3 ) Income from transition and related services (1 ) (1 ) (3 ) Foreign exchange transaction losses, net 9 1 8 Amortization of trademarks and other intangible assets 8 8 9 Intangible asset impairment charges 3 3 - Restructuring charges 2 - - Insurance and other settlements - (5 ) - Other (3 ) - (1 ) Total $ (13 ) $ (10 ) $ (4 ) Investment in Low-Income Housing Partnerships The Company owns, directly or indirectly, limited partnership interests in low-income housing partnerships, which are accounted for using the equity method of accounting. The Company's investment balance as of June 30, 2015 and 2014, was $ 0 4 In April 2015, a low-income housing partnership, in which the Company was a limited partner, sold its real estate holdings. The real property sale resulted in $ 15 14 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 17 . INCOME TAXES The provision for income taxes on continuing operations, by tax jurisdiction, consisted of the following as of June 30: 2015 2014 2013 Current Federal $ 265 $ 247 $ 245 State 28 34 23 Foreign 38 45 19 Total current 331 326 287 Deferred Federal (13 ) (19 ) (1 ) State (1 ) 2 (2 ) Foreign (2 ) (4 ) (5 ) Total deferred (16 ) (21 ) (8 ) Total $ 315 $ 305 $ 279 The components of earnings from continuing operations before income taxes, by tax jurisdiction, consisted of the following as of June 30: 2015 2014 2013 United States $ 829 $ 754 $ 724 Foreign 92 130 128 Total $ 921 $ 884 $ 852 A reconciliation of the statutory federal income tax rate to the Company's effective tax rate on continuing operations follows as of June 30: 2015 2014 2013 Statutory federal tax rate 35.0 % 35.0 % 35.0 % State taxes (net of federal tax benefits) 2.1 2.6 1.7 Tax differential on foreign earnings (0.3) (0.3 ) (2.9 ) Domestic manufacturing deduction (2.1) (2.3 ) (2.3 ) Change in valuation allowance 0.6 0.6 0.7 Other differences (1.1) (1.0 ) 0.5 Effective tax rate 34.2 % 34.6 % 32.7 % The lower effective tax rate for fiscal year 2015 compared to fiscal year 2014 was primarily due to higher uncertain tax position releases, partially offset by higher tax on foreign earnings. Applicable U.S. income taxes and foreign withholding taxes have not been provided on approximately $ 204 54 Tax benefits resulting from stock-based payment arrangements that are in excess of the tax benefits recorded in net earnings over the vesting period of those arrangements (excess tax benefits) are recorded as increases to additional paid-in capital. Excess tax benefits of approximately $ 42 11 11 The components of net deferred tax assets (liabilities) as of June 30 are shown below: 2015 2014 Deferred tax assets Compensation and benefit programs $ 191 $ 171 Basis difference related to Venture Agreement 30 30 Accruals and reserves 43 53 Inventory costs 19 20 Net operating loss and tax credit carryforwards 41 37 Other 61 63 Subtotal 385 374 Valuation allowance (34 ) (51 ) Total deferred tax assets 351 323 Deferred tax liabilities Fixed and intangible assets (277 ) (269 ) Low-income housing partnerships (22 ) (24 ) Unremitted foreign earnings (7 ) (8 ) Other (24 ) (26 ) Total deferred tax liabilities (330 ) (327 ) Net deferred tax assets (liabilities) $ 21 $ (4 ) The Company periodically reviews its deferred tax assets for recoverability. A valuation allowance is established when the Company believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Valuation allowances have been provided to reduce deferred tax assets to amounts considered recoverable. Details of the valuation allowance were as follows as of June 30: 2015 2014 Valuation allowance at beginning of year $ (51 ) $ (36 ) Net decrease/ (increase) 15 (12 ) Net decrease/(increase ) 2 (3 ) Valuation allowance at end of year $ (34 ) $ (51 ) As of June 30, 2015, the Company had foreign tax credit carryforwards of $ 24 18 13 10 The Company files income tax returns in the U.S. federal and various state, local and foreign jurisdictions. The federal statute of limitations has expired for all tax years through June 30, 2011 The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. As of June 30, 2015 and 2014, the total balance of accrued interest and penalties related to uncertain tax positions was $ 10 11 1 3 1 The following is a reconciliation of the beginning and ending amounts of the Company's gross unrecognized tax benefits: 2015 2014 2013 Unrecognized tax benefits at beginning of year $ 71 $ 69 $ 80 Gross increases - tax positions in prior periods 3 3 3 Gross decreases - tax positions in prior periods (8 ) (5 ) (19 ) Gross increases - current period tax positions 6 7 7 Gross decreases - current period tax positions - - - Lapse of applicable statute of limitations (34 ) (1 ) (2 ) Settlements - (2 ) - Unrecognized tax benefits at end of year $ 38 $ 71 $ 69 Included in the balance of unrecognized tax benefits as of June 30, 2015, 2014 and 2013, are potential benefits of $ 27 58 56 32 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2015 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 1 8 . EMPLOYEE BENEFIT PLANS Retirement Income Plans Effective July 1, 2011, and as part of a set of long-term, cost-neutral enhancements to the Company's overall employee benefit plans, the domestic qualified retirement income pension plan was frozen for service accrual and eligibility purposes for most participants, however, interest credits have continued to accrue on participant balances. As of June 30, 2015 and 2014, the benefits of the domestic qualified plan are based on either employee years of service and compensation or a stated dollar amount per year of service. The Company is the sole contributor to the plan in amounts deemed necessary to provide benefits and to the extent deductible for federal income tax purposes. Assets of the plan consist primarily of investments in cash equivalents and common collective trusts. The Company did not make any contributions to its domestic qualified retirement income plan during fiscal years 2015, 2014 and 2013. The Company's funding policy for its qualified plans is to contribute amounts sufficient to meet minimum funding requirements as set forth in employee benefit tax laws plus additional amounts as the Company may determine to be appropriate. Subsequent to June 30, 2015, the Company made a $ 15 Contributions made to the domestic nonqualified retirement income plans were $ 13 13 11 1 2 1 Retirement Health Care Plans The Company provides certain health care benefits for employees who meet age, participation and length of service requirements at retirement. The plans pay stated percentages of covered expenses after annual deductibles have been met or stated reimbursements up to a specified dollar subsidy amount. Benefits paid take into consideration payments by Medicare for the domestic plan. The plans are funded as claims are paid, and the Company has the right to modify or terminate certain plans. The assumed domestic health care cost trend rate used in measuring the accumulated postretirement benefit obligation was 7.1 7.2 4.5 2028 100 Financial Information Related to Retirement Income and Retirement Health Care Summarized information for the Company's retirement income and retirement health care plans as of and for the fiscal years ended June 30 is as follows: Retirement Retirement Income Health Care 2015 2014 2015 2014 Change in benefit obligations: Projected benefit obligation as of beginning of year $ 641 $ 612 $ 49 $ 51 Service cost 2 3 - 1 Interest cost 25 27 2 2 Actuarial loss (gain) 14 47 - (2 ) Plan amendments - - (1 ) (2 ) Translation and other adjustments (5 ) (6 ) (2 ) - Benefits paid (38 ) (42 ) (3 ) (1 ) Projected benefit obligation as of end of year 639 641 45 49 Change in plan assets: Fair value of assets as of beginning of year $ 432 $ 408 $ - $ - Actual return on plan assets 6 51 - - Employer contributions to nonqualified plans 13 15 3 1 Benefits paid (38 ) (42 ) (3 ) (1 ) Translation adjustment (4 ) - - - Fair value of plan assets as of end of year 409 432 - - Accrued benefit cost, net funded status $ (230 ) $ (209 ) $ (45 ) $ (49 ) Amount recognized in the balance sheets consists of: Pension benefit assets $ 2 $ 2 $ - $ - Current accrued benefit liability (16 ) (14 ) (3 ) (4 ) Non-current accrued benefit liability (216 ) (197 ) (42 ) (45 ) Accrued benefit cost, net $ (230 ) $ (209 ) $ (45 ) $ (49 ) Retirement income plans with an accumulated benefit obligation (ABO) in excess of plan assets as of June 30 were as follows: Other Pension Plans Retirement Plans 2015 2014 2015 2014 Projected benefit obligation $ 538 $ 538 $ 80 $ 78 Accumulated benefit obligation 538 538 80 78 Fair value of plan assets 385 405 - - The ABO for all pension plans was $ 559 563 530 The net costs of the retirement income and health care plans for the fiscal years ended June 30 included the following components: Retirement Income Retirement Health Care 2015 2014 2013 2015 2014 2013 Service cost $ 2 $ 3 $ 4 $ - $ 1 $ 1 Interest cost 25 27 24 2 2 2 Expected return on plan assets (20 ) (25 ) (29 ) - - - Amortization of unrecognized items 12 11 12 2 (4 ) (2 ) Total $ 19 $ 16 $ 11 $ 4 $ (1 ) $ 1 Items not yet recognized as a component of postretirement expense as of June 30, 2015, consisted of: Retirement Retirement Income Health Care Net actuarial loss (gain) $ 264 $ (17 ) Prior service benefit - (7 ) Net deferred income tax (assets) liabilities (98 ) 8 Accumulated other comprehensive loss (income) $ 166 $ (16 ) Net actuarial loss (gain) recorded in accumulated other comprehensive net (losses) income for the fiscal year ended June 30, 2015, included the following: Retirement Retirement Income Health Care Net actuarial loss (gain) as of beginning of year $ 247 $ (29 ) Amortization during the year (12 ) 13 Loss (gain) during the year 29 (1 ) Net actuarial loss (gain) as of end of year $ 264 $ (17 ) The Company uses the straight-line amortization method for unrecognized prior service costs and benefits. In fiscal year 2016, the Company expects to recognize, on a pre-tax basis, $ 10 2 Weighted-average assumptions used to estimate the actuarial present value of benefit obligations as of June 30 were as follows: Retirement Income Retirement Health Care 2015 2014 2015 2014 Discount rate 4.20 % 4.05 % 4.16 % 4.00 % Rate of compensation increase 3.37 % 4.46 % n/a n/a Weighted-average assumptions used to estimate the net periodic pension and other postretirement benefit costs as of June 30 were as follows: Retirement Income 2015 2014 2013 Discount rate 4.05 % 4.39 % 3.87 % Rate of compensation increase 4.46 % 3.44 % 3.71 % Expected return on plan assets 5.28 % 6.61 % 7.50 % Retirement Health Care 2015 2014 2013 Discount rate 4.00 % 4.33 % 3.86 % The expected long-term rate of return assumption is based on an analysis of historical experience of the portfolio and the summation of prospective returns for each asset class in proportion to the fund's current asset allocation. Expected benefit payments for the Company's pension and other postretirement plans as of June 30, 2015, were as follows: Retirement Retirement Income Health Care 2016 $ 41 $ 4 2017 42 3 2018 43 3 2019 40 3 2020 41 3 Fiscal years 2021 through 2025 210 12 Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. The target allocations and weighted average asset allocations by asset category of the investment portfolio for the Company's domestic retirement income plans as of June 30 were: % Target Allocation % of Plan Assets 2015 2014 2015 2014 U.S. equity 11 % 11 % 11 % 11 % International equity 12 12 12 12 Fixed income 74 74 74 74 Other 3 3 3 3 Total 100 % 100 % 100 % 100 % The target asset allocation is determined based on the optimal balance between risk and return and, at times, may be adjusted to achieve the plan's overall investment objective to generate sufficient resources to pay current and projected plan obligations over the life of the domestic qualified retirement income plan. The following table sets forth by level within the fair value hierarchy, the retirement income plans' assets carried at fair value as of June 30: 2015 Level 1 Level 2 Total Cash equivalents $ 3 $ - $ 3 Common collective trusts Bond funds - 295 295 International equity funds - 59 59 Domestic equity funds - 41 41 Real estate fund - 11 11 Total common collective trusts - 406 406 Total assets at fair value $ 3 $ 406 $ 409 2014 Level 1 Level 2 Total Cash equivalents $ 3 $ - $ 3 Common collective trusts Bond funds - 309 309 International equity funds - 64 64 Domestic equity funds - 44 44 Real estate fund - 12 12 Total common collective trusts - 429 429 Total assets at fair value $ 3 $ 429 $ 432 The carrying value of cash equivalents approximates its fair value as of June 30, 2015 and 2014. Common collective trust funds are not publicly traded and, therefore, are classified as Level 2. They are valued at a net asset value unit price determined by the portfolio's sponsor based on the fair value of underlying assets held by the common collective trust fund on June 30, 2015 and 2014. The common collective trusts are invested in various trusts that attempt to achieve their investment objectives by investing primarily in other collective investment funds which have characteristics consistent with each trust's overall investment objective and strategy. Defined Contribution Plans The Company has defined contribution plans for most of its domestic employees. The plans include The Clorox Company 401(k) Plan, The Clorox Company 2011 Nonqualified Defined Benefit Plan and the Executive Retirement Plan. The aggregate cost of the domestic defined contribution plans was $ 45 43 45 42 38 40 3 3 1 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2015 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | NOTE 19 . SEGMENT REPORTING The Company operates through strategic business units that are aggregated into four reportable segments: Cleaning, Household, Lifestyle and International. Cleaning ® ® ® ® ® ® ® ® ® ® ® ® ® ® Household ® ® ® ® ® ® Lifestyle ® ® ® ® ® International ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, property and equipment, other investments and deferred taxes. Year Cleaning Household Lifestyle International Corporate Company Net sales 2015 $ 1,824 $ 1,794 $ 950 $ 1,087 $ - $ 5,655 2014 1,776 1,709 936 1,093 - 5,514 2013 1,783 1,693 929 1,128 - 5,533 Earnings (losses) from continuing operations before income taxes 2015 445 375 257 79 (235) 921 2014 428 326 258 99 (227 ) 884 2013 420 336 259 95 (258 ) 852 Income from equity investees 2015 - - - 14 - 14 2014 - - - 13 - 13 2013 - - - 12 - 12 Total assets 2015 876 725 860 1,057 646 4,164 2014 887 745 869 1,190 567 4,258 Capital expenditures 2015 35 50 11 25 4 125 2014 37 53 11 31 5 137 2013 57 72 19 24 18 190 Depreciation and amortization 2015 52 67 19 24 7 169 2014 49 67 19 25 17 177 2013 52 69 19 26 14 180 Significant noncash charges included in earnings from continuing operations before income taxes: Share-based compensation 2015 8 7 4 1 12 32 2014 11 9 5 1 10 36 2013 10 9 5 1 10 35 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 Stores, Inc. and its affiliates, were 26 27 27 45 Three of the Company's product lines have accounted for 10% or more of consolidated net sales during each of the past three fiscal years. In fiscal years 2015, 2014 and 2013, sales of liquid bleach represented approximately 14 13 14 26 27 28 28 14 13 13 38 36 37 8 8 10 11 11 10 34 34 32 Net sales and property, plant and equipment, net, by geographic area as of and for the fiscal years ended June 30 were as follows: Fiscal United Total Year States Foreign Company Net sales 2015 $ 4,609 $ 1,046 $ 5,655 2014 4,466 1,048 5,514 2013 4,448 1,085 5,533 Property, plant and equipment, net 2015 $ 801 $ 117 $ 918 2014 825 152 977 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2015 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 20 . RELATED PARTY TRANSACTIONS The Company holds various equity investments with ownership percentages of up to 50 Transactions with the Company's equity investees typically represent payments for contract manufacturing and purchases of raw materials. Payments to related parties, including equity investees, for such transactions during the fiscal years ended June 30, 2015, 2014 and 2013 were $ 55 57 50 |
UNAUDITED QUARTERLY DATA
UNAUDITED QUARTERLY DATA | 12 Months Ended |
Jun. 30, 2015 | |
UNAUDITED QUARTERLY DATA [Abstract] | |
UNAUDITED QUARTERLY DATA | NOTE 21 . UNAUDITED QUARTERLY DATA Quarters Ended September 30 December 31 March 31 June 30 Total Year Fiscal year ended June 30, 2015 Net sales $ 1,352 $ 1,345 $ 1,401 $ 1,557 $ 5,655 Cost of products sold $ 774 $ 773 $ 796 $ 847 $ 3,190 Earnings from continuing operations $ 145 $ 128 $ 144 $ 189 $ 606 (Losses) earnings from discontinued operations, net of tax $ (55 ) $ (3 ) $ 30 $ 2 $ (26 ) Net earnings $ 90 $ 125 $ 174 $ 191 $ 580 Per common share: Basic Continuing operations $ 1.12 $ 0.98 $ 1.09 $ 1.46 $ 4.65 Discontinued operations (0.42 ) (0.02 ) 0.22 0.02 (0.20 ) Basic net earnings per share $ 0.70 $ 0.96 $ 1.31 $ 1.48 $ 4.45 Diluted Continuing operations $ 1.10 $ 0.97 $ 1.08 $ 1.44 $ 4.57 Discontinued operations (0.42 ) (0.02 ) 0.22 0.02 (0.20 ) Diluted net earnings per share $ 0.68 $ 0.95 $ 1.30 $ 1.46 $ 4.37 Dividends declared per common share $ 0.74 $ 0.74 $ 0.74 $ 0.77 $ 2.99 Market price (NYSE) High $ 112.70 $ 112.65 $ 106.36 $ 98.31 $ 112.70 Low 103.77 102.95 95.19 86.03 86.03 Year-end 104.02 Fiscal year ended June 30, 2014 Net sales $ 1,343 $ 1,308 $ 1,366 $ 1,497 $ 5,514 Cost of products sold $ 759 $ 753 $ 791 $ 855 $ 3,158 Earnings from continuing operations $ 139 $ 118 $ 151 $ 171 $ 579 Losses from discontinued operations, net of tax $ (3 ) $ (3 ) $ (14 ) $ (1 ) $ (21 ) Net earnings $ 136 $ 115 $ 137 $ 170 $ 558 Per common share: Basic Continuing operations $ 1.07 $ 0.91 $ 1.16 $ 1.32 $ 4.47 Discontinued operations (0.03 ) (0.02 ) (0.11 ) - (0.16 ) Basic net earnings per share $ 1.04 $ 0.89 $ 1.05 $ 1.32 $ 4.31 Diluted Continuing operations $ 1.05 $ 0.90 $ 1.14 $ 1.30 $ 4.39 Discontinued operations (0.02 ) (0.03 ) (0.10 ) (0.01 ) (0.16 ) Diluted $ 1.03 $ 0.87 $ 1.04 $ 1.29 $ 4.23 Dividends declared per common share $ 0.71 $ 0.71 $ 0.71 $ 0.74 $ 2.87 Market price (NYSE) High $ 87.60 $ 96.76 $ 92.75 $ 93.43 $ 96.76 Low 81.25 80.20 83.70 86.56 80.20 Year-end 91.40 |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Jun. 30, 2015 | |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Dollars in millions) Column A Column B Column C Column D Column E Additions Deductions Balance at Charged to Credited to Credited Balance at beginning costs and costs and to other end Description of period expenses expenses accounts of period Allowance for doubtful accounts Year ended June 30, 2015 $ (3 ) $ (1 $ - $ - $ (4 ) Year ended June 30, 2014 (5 ) - 2 - (3 ) Year ended June 30, 2013 (7 ) - 2 - (5 ) LIFO allowance Year ended June 30, 2015 $ (36 ) $ - $ - $ 2 $ (34 ) Year ended June 30, 2014 (40 ) - 3 1 (36 ) Year ended June 30, 2013 (37 ) (3 ) - - (40 ) Valuation allowance on deferred tax assets Year ended June 30, 2015 $ (51 ) $ (4 ) $ - $ 21 $ (34 ) Year ended June 30, 2014 (36 ) (25 ) - 10 (51 ) Year ended June 30, 2013 (20 ) (16 ) - - (36 ) |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Jun. 30, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation The Company is principally engaged in the production, marketing and sales of consumer products through mass retail outlets, e-commerce channels, distributors and medical supply distributors. The consolidated financial statements include the statements of the Company and its wholly owned and controlled subsidiaries. All significant intercompany transactions and accounts were eliminated in consolidation. Certain prior year reclassifications were made in the consolidated financial statements and related notes to the consolidated financial statements to conform to the current year presentation. Effective September 22, 2014, the Company's Venezuela affiliate, Corporación Clorox de Venezuela S.A. (Clorox Venezuela), discontinued its operations. Consequently, the Company reclassified the financial results of Clorox Venezuela as a discontinued operation in the consolidated financial statements for all periods presented herein. |
Use of Estimates | Use of Estimates The preparation of these consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) requires management to reach opinions as to estimates and assumptions that affect reported amounts and related disclosures. Specific areas requiring management's opinion on estimates and judgments include assumptions pertaining to accruals for consumer and trade-promotion programs, stock-based compensation costs, pension and post-employment benefit costs, future cash flows associated with impairment testing of goodwill and other long-lived assets, the credit worthiness of customers, uncertain tax positions, tax valuation allowances and legal, environmental and insurance matters. Actual results could materially differ from estimates and assumptions made. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid instruments, time deposits and money market funds with an initial maturity at purchase of three months or less. The fair value of cash and cash equivalents approximates the carrying amount. The Company's cash position includes amounts held by foreign subsidiaries and, as a result, the repatriation of certain cash balances from some of the Company's foreign subsidiaries could result in additional tax costs in the United States and in certain foreign jurisdictions. However, these cash balances are generally available without legal restriction to fund local business operations. In addition, a portion of the Company's cash balance is held in U.S. dollars by foreign subsidiaries, whose functional currency is their local currency. Such U.S. dollar balances are reported on the foreign subsidiaries' books, in their functional currency, with the impact from foreign currency exchange rate differences recorded in other income, net. The Company's cash holdings were as follows as of June 30: 2015 2014 U.S. dollar balances held by U.S. dollar functional currency subsidiaries and at parent $ 221 $ 180 Non-U.S. dollar balances held by non-U.S. dollar functional currency subsidiaries 142 132 U.S. dollar balances held by non-U.S. dollar functional currency subsidiaries 19 12 Non-U.S. dollar balances held by U.S. dollar functional currency subsidiaries - 5 Total $ 382 $ 329 |
Inventories | Inventories Inventories are stated at the lower of cost or market. When necessary, the Company provides allowances to adjust the carrying value of its inventory to the lower of cost or market, including any costs to sell or dispose. Appropriate consideration is given to obsolescence, excessive inventory levels, product deterioration and other factors in evaluating net realizable value for the purposes of determining the lower of cost or market. |
Property, Plant and Equipment and Finite-Lived Intangible Assets | Property, Plant and Equipment and Finite-Lived Intangible Assets Property, plant and equipment and finite-lived intangible assets are stated at cost. Depreciation and amortization expense are calculated by the straight-line method using the estimated useful lives or lives determined by lease contracts for the related assets. The table below provides estimated useful lives of property, plant and equipment by asset classification. Estimated Useful Lives Buildings and leasehold improvements 10 40 Land improvements 10 30 Machinery and equipment 3 15 Computer equipment 3 5 Capitalized software costs 3 7 Property, plant and equipment and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances occur that indicate that the carrying amount of an asset (or asset group) may not be fully recoverable. The risk of impairment is initially assessed based on an estimate of the undiscounted cash flows at the lowest level for which identifiable cash flows exist. Impairment occurs when the book value of the asset exceeds the estimated future undiscounted cash flows generated by the asset. When impairment is indicated, an impairment charge is recorded for the difference between the book value of the asset and its estimated fair market value. Depending on the asset, estimated fair market value may be determined either by use of a discounted cash flow model or by reference to estimated selling values of assets in similar condition. |
Capitalization of Software Costs | Capitalization of Software Costs The Company capitalizes certain qualifying costs incurred in the acquisition and development of software for internal use, including the costs of the software, materials, consultants, interest and payroll and payroll-related costs for employees during the application development stage. Internal and external costs incurred during the preliminary project stage and post implementation-operation stage, mainly training and maintenance costs, are expensed as incurred. Once the application is substantially complete and ready for its intended use, qualifying costs are amortized on a straight-line basis over the software's useful life. |
Impairment Review of Goodwill and Indefinite-Lived Intangible Assets | Impairment Review of Goodwill and Indefinite-Lived Intangible Assets The Company tests its goodwill, trademarks with indefinite lives and other indefinite-lived intangible assets annually for impairment in the fiscal fourth quarter unless there are indications during a different interim period that these assets may have become impaired. With respect to goodwill, the Company has the option to first assess qualitative factors such as maturity and stability of the reporting unit, magnitude of excess fair value over book value from the prior year's impairment testing, other reporting unit specific operating results as well as new events and circumstances impacting the operations at the reporting unit level. If the result of a qualitative test indicates a potential for impairment of a reporting unit, a quantitative test is performed. The quantitative test is a two-step process. In the first step, the Company compares the estimated fair value of the reporting unit to its carrying value. In all instances, the estimated fair value exceeded the carrying value of the reporting unit. Had the estimated fair value of any reporting unit been less than its carrying value, the Company would have performed a second step to determine the implied fair value of the reporting unit's goodwill. If the carrying amount of a reporting unit's goodwill had exceeded its implied fair value, an impairment charge would have been recorded for the difference between the carrying amount and the implied fair value of the reporting unit's goodwill. To determine the fair value of a reporting unit as part of its quantitative test, the Company uses a discounted cash flow (DCF) approach, as it believes that this approach is the most reliable indicator of the fair value of its businesses and the fair value of their future earnings and cash flows. Under this approach, the Company estimates the future cash flows of each reporting unit and discounts these cash flows at a rate of return that reflects their relative risk. The cash flows used in the DCF are consistent with those the Company uses in its internal planning, which gives consideration to actual business trends experienced, and the broader business strategy for the long term. The other key estimates and factors used in the DCF include, but are not limited to, future sales volumes, revenue and expense growth rates, changes in working capital, foreign exchange rates, currency devaluation, inflation and a perpetuity growth rate. Changes in such estimates or the application of alternative assumptions could produce different results. For trademarks and other intangible assets with indefinite lives, the Company performs a quantitative analysis to test for impairment and compares the estimated fair value of an asset to its carrying amount. If the carrying amount of such asset exceeds its estimated fair value, an impairment charge is recorded for the difference between the carrying amount and the estimated fair value. The Company uses the income approach to estimate the fair value of its trademarks and other intangible assets with indefinite lives. This approach requires significant judgments in determining both the assets' estimated cash flows as well as the appropriate discount and foreign exchange rates applied to those cash flows to determine fair value. Changes in such estimates or the use of alternative assumptions could produce different results. |
Stock-based Compensation | Stock-based Compensation The Company grants various nonqualified stock-based compensation awards to eligible employees, including stock options and performance units. For stock options, the Company estimates the fair value of each award on the date of grant using the Black-Scholes valuation model, which requires management to make estimates regarding expected option life, stock price volatility and other assumptions. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The Company estimates stock option forfeitures based on historical data for each employee grouping. The total number of stock options expected to vest is adjusted by actual and estimated forfeitures. Changes to the actual and estimated forfeitures will result in a cumulative catch-up adjustment in the period of change. Compensation expense is recorded by amortizing the grant date fair values on a straight-line basis over the vesting period, adjusted for estimated forfeitures. The Company's performance unit grants provide for the issuance of common stock to certain managerial staff and executive management if the Company achieves specified performance targets. The performance period is three 150 Cash flows resulting from tax deductions in excess of the cumulative compensation cost recognized for stock-based payment arrangements (excess tax benefits) are primarily classified as financing cash inflows. |
Employee Benefits | Employee Benefits The Company accounts for its defined benefit retirement income and retirement health care plans using actuarial methods . 5 The Company recognizes an actuarial-based obligation at the onset of disability for certain benefits provided to individuals after employment, but before retirement, that include medical, dental, vision, life and other benefits. |
Environmental Costs | Environmental Costs The Company is involved in certain environmental remediation and ongoing compliance activities. Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and based upon a reasonable estimate of the liability. The Company's accruals reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information become available. Actual costs to be incurred at identified sites in future periods may vary from the estimates, given the inherent uncertainties in evaluating environmental exposures. The accrual for environmental matters is included in Other liabilities in the Company's consolidated balance sheets on an undiscounted basis due to uncertainty regarding the timing of future payments. |
Revenue Recognition | Revenue Recognition Sales are recognized as revenue when the risk of loss and title pass to the customer and when all of the following have occurred: a firm sales arrangement exists, pricing is fixed or determinable and collection is reasonably assured. Sales are recorded net of allowances for returns, trade promotions, coupons and other discounts. The Company routinely commits to one-time or ongoing trade-promotion programs with customers and consumer coupon programs that require the Company to estimate and accrue the expected costs of such programs. Programs include shelf price reductions, end-of-aisle or in-store displays of the Company's products and graphics and other trade-promotion activities conducted by the customer. Coupons are recognized as a liability when distributed based upon expected consumer redemptions. The Company maintains liabilities related to these programs for the estimated expenses incurred, but not paid, at the end of each period. Trade-promotion and coupon redemption costs are recorded as a reduction of sales. The Company provides an allowance for doubtful accounts based on its historical experience and ongoing assessment of its customers' credit risk. Receivables were presented net of an allowance for doubtful accounts of $ 4 3 12 15 |
Cost of Products Sold | Cost of Products Sold Cost of products sold represents the costs directly related to the manufacture and distribution of the Company's products and primarily includes raw materials, packaging, contract packer fees, shipping and handling, warehousing, package design, depreciation, amortization, direct and indirect labor and operating costs for the Company's manufacturing and distribution facilities including salary, benefit costs and incentive compensation, and royalties and amortization related to the Company's Glad Venture Agreement (see Note 9). Costs associated with developing and designing new packaging are expensed as incurred and include design, artwork, films and labeling. Expenses for fiscal years ended June 30, 2015, 2014 and 2013 were $ 11 12 10 |
Selling and Administrative Expenses | Selling and Administrative Expenses Selling and administrative expenses represent costs incurred by the Company in generating revenues and managing the business and include market research, commissions and certain administrative expenses. Administrative expenses include salary, benefits, incentive compensation, professional fees and services, software and licensing fees and other operating costs associated with the Company's non-manufacturing, non-research and development staff, facilities and equipment. |
Advertising and Research and Development Costs | Advertising and Research and Development Costs The Company expenses advertising and research and development costs in the period incurred. |
Income Taxes | Income Taxes The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the anticipated future tax consequences attributable to differences between financial statement amounts and their respective tax bases. Management reviews the Company's deferred tax assets to determine whether their value can be realized based upon available evidence. A valuation allowance is established when management believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the Company's tax provision in the period of change. In addition to valuation allowances, the Company provides for uncertain tax positions when such tax positions do not meet certain recognition thresholds or measurement standards. Amounts for uncertain tax positions are adjusted in quarters when new information becomes available or when positions are effectively settled. U.S. income tax expense and foreign withholding taxes are provided on unremitted foreign earnings that are not indefinitely reinvested at the time the earnings are generated. Where foreign earnings are indefinitely reinvested, no provision for U.S. income or foreign withholding taxes is made. When circumstances change and the Company determines that some or all of the undistributed earnings will be remitted in the foreseeable future, the Company accrues an expense in the current period for U.S. income taxes and foreign withholding taxes attributable to the anticipated remittance. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation Local currencies are the functional currencies for substantially all of the Company's foreign operations. When the transactional currency is different than the functional currency, transaction gains and losses are included as a component of other income, net. In addition, certain assets and liabilities denominated in currencies different than a foreign subsidiary's functional currency are reported on the subsidiary's books in its functional currency, with the impact from exchange rate differences recorded in other income, net. Assets and liabilities of foreign operations are translated into U.S. dollars using the exchange rates in effect at the balance sheet date, while income and expenses are translated at the average monthly exchange rates during the year. Gains and losses on foreign currency translations are reported as a component of other comprehensive income. Deferred taxes are not provided on cumulative translation adjustments where the Company expects earnings of a foreign subsidiary to be indefinitely reinvested. The income tax effect of currency translation adjustments related to foreign subsidiaries and joint ventures for which earnings are not considered indefinitely reinvested is recorded as a component of deferred taxes with an offset to other comprehensive income. |
Derivative Instruments | Derivative Instruments The Company's use of derivative instruments, principally swaps, futures and forward contracts, is limited to non-trading purposes and is designed to partially manage exposure to changes in commodity prices, interest rates and foreign currencies. The Company's contracts are hedges for transactions with notional amounts and periods consistent with the related exposures and do not constitute investments independent of these exposures. The changes in the fair value (i.e., gains or losses) of a derivative instrument are recorded as either assets or liabilities in the consolidated balance sheets with an offset to net earnings or other comprehensive income depending on whether, for accounting purposes, it has been designated and qualifies as an accounting hedge and, if so, on the type of hedging relationship. The criteria used to determine if hedge accounting treatment is appropriate are: (a) formal designation and documentation of the hedging relationship, the risk management objective and hedging strategy at hedge inception; (b) eligibility of hedged items, transactions and corresponding hedging instrument; and (c) effectiveness of the hedging relationship both at inception of the hedge and on an ongoing basis in achieving the hedging objectives. For those derivative instruments designated and qualifying as hedging instruments, the Company must designate the hedging instrument either as a fair value hedge or as a cash flow hedge. The Company designates its commodity forward and future contracts for forecasted purchases of raw materials, interest rate forward contracts for forecasted interest payments, and foreign currency forward contracts for forecasted purchases of inventory as cash flow hedges. During the fiscal years ended June 30, 2015, 2014 and 2013, the Company had no hedging instruments designated as fair value hedges. For derivative instruments designated and qualifying as cash flow hedges, the effective portion of gains or losses is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. From time to time, the Company may have contracts not designated as hedges for accounting purposes, for which it recognizes changes in the fair value in other income, net. Cash flows from hedging activities are classified as operating activities in the consolidated statements of cash flows. The Company de-designates cash flow hedge relationships when it determines that the hedge relationships are no longer highly effective or that the forecasted transaction is no longer probable. Upon de-designation of a hedge, the portion of gains or losses on the derivative instrument that was previously accumulated in other comprehensive income remains in accumulated other comprehensive income until the forecasted transaction is recognized in net earnings, or is recognized in net earnings immediately if it is determined that there is any ineffectiveness or the forecasted transaction is no longer probable. The Company uses different methodologies, when necessary, to estimate the fair value of its derivative contracts. The estimated fair values of the majority of the Company's contracts are based on quoted market prices, traded exchange market prices, or broker price quotations, and represent the estimated amounts that the Company would pay or receive to terminate the contracts. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, “Simplifying the Presentation of Debt Issuance Cost,” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of ASU 2015-03 will have on its consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis,” which changes the guidance for evaluating whether to consolidate certain legal entities. The amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of ASU 2015-02 will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which replaces most existing U.S. GAAP revenue recognition guidance and is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers, including information about significant judgments and changes in judgments. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with the option to early adopt in the first quarter of fiscal year 2018. The Company is currently evaluating the impact that adoption of ASU 2014-09 will have on its consolidated financial statements. In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (Topic 205),” which will change the criteria for reporting discontinued operations. The amendments will also require new disclosures about discontinued operations and disposals of components of an entity that do not qualify for discontinued operations reporting. The amendments are effective for the Company for new disposals (or classifications as held for sale) of components of the Company, should they occur, beginning in the first quarter of fiscal year 2016. Early adoption is permitted for disposals (or classifications as held for sale) that have not been previously reported. The Company will adopt this ASU beginning in the first quarter of fiscal year 2016, as required. Adoption of the new standard will not impact the Company's reporting or disclosures for discontinued operations of Clorox Venezuela |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Components of Cash and Cash Equivalents | 2015 2014 U.S. dollar balances held by U.S. dollar functional currency subsidiaries and at parent $ 221 $ 180 Non-U.S. dollar balances held by non-U.S. dollar functional currency subsidiaries 142 132 U.S. dollar balances held by non-U.S. dollar functional currency subsidiaries 19 12 Non-U.S. dollar balances held by U.S. dollar functional currency subsidiaries - 5 Total $ 382 $ 329 |
Useful Lives of Property, Plant and Equipment | Estimated Useful Lives Buildings and leasehold improvements 10 40 Land improvements 10 30 Machinery and equipment 3 15 Computer equipment 3 5 Capitalized software costs 3 7 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
DISCONTINUED OPERATIONS [Abstract] | |
Summary of (losses) gains from discontinued operations | 2015 2014 2013 Operating (losses) earnings from Clorox Venezuela before income taxes $ (6 ) $ (23 ) $ 1 Exit costs and other related expenses for Clorox Venezuela (78 ) - - Total losses from Clorox Venezuela before income taxes (84 ) (23 ) 1 Income tax benefit attributable to Clorox Venezuela 29 6 - Total (losses) gains from Clorox Venezuela, net of tax (55 ) (17 ) 1 Gains (losses) from discontinued operations other than Clorox Venezuela, net of tax 29 (4 ) (2 ) Losses from discontinued operations, net of tax $ (26 ) $ (21 ) $ (1 ) |
Summary of operating losses, asset charges and other costs | 2015 Operating losses from Clorox Venezuela before income taxes $ (6 ) Net asset charges: Inventories (11 ) Property, plant and equipment (16 ) Trademark and other intangible assets (6 ) Other assets (2 ) Other exit and business termination costs: Severance (3 ) Recognition of deferred foreign currency translation loss (30 ) Other (10 ) Total losses from Clorox Venezuela before income taxes (84 ) Income tax benefit attributable to Clorox Venezuela 29 Total losses from Clorox Venezuela, net of tax (55 ) Gains from discontinued operations other than Clorox Venezuela, net of tax 29 Losses from discontinued operations, net of tax $ (26 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
INVENTORIES [Abstract] | |
Schedule of Inventories | 2015 2014 Finished goods $ 316 $ 312 Raw materials and packaging 101 108 Work in process 3 2 LIFO allowances (35 ) (36 ) Total $ 385 $ 386 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
OTHER CURRENT ASSETS [Abstract] | |
Other Current Assets | 2015 2014 Deferred tax assets $ 99 $ 81 Prepaid expenses 39 42 Other 5 11 Total $ 143 $ 134 |
PROPERTY, PLANT AND EQUIPMENT35
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
Schedule of Property, Plant and Equipment, Net | 2015 2014 Machinery and equipment $ 1,608 $ 1,593 Buildings 515 506 Capitalized software costs 371 374 Land and improvements 122 122 Construction in progress 65 79 Computer equipment 76 79 2,757 2,753 Less: accumulated depreciation and amortization (1,839 ) (1,776 ) Total $ 918 $ 977 |
GOODWILL, TRADEMARKS AND OTHE36
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS [Abstract] | |
Schedule of Goodwill | Goodwill Cleaning Lifestyle Household International Total Balance June 30, 2013 $ 323 $ 244 $ 85 $ 453 $ 1,105 Effect of foreign currency translation - - - (4 ) (4 ) Balance June 30, 2014 323 244 85 449 1,101 Effect of foreign currency translation - - - (34 ) (34 ) Balance June 30, 2015 $ 323 $ 244 $ 85 $ 415 $ 1,067 |
Schedule of Intangible Assets, Excluding Goodwill | As of June 30, 2015 As of June 30, 2014 Gross carrying amount Accumulated amortization Net carrying amount Gross Accumulated amortization Net carrying amount Trademarks not subject to amortization $ 524 $ - $ 524 $ 533 $ - $ 533 Trademarks subject to amortization 33 22 11 36 22 14 Other intangible assets: Technology and product formulae 137 133 4 139 129 10 Other 188 142 46 194 140 54 Total $ 882 $ 297 $ 585 $ 902 $ 291 $ 611 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
ACCRUED LIABILITIES [Abstract] | |
Accrued Liabilities | 2015 2014 Compensation and employee benefit costs $ 189 $ 102 Trade and sales promotion 115 113 Dividends 103 100 Royalties 16 11 Insurance 15 18 Interest 14 27 Derivatives 8 17 Other 88 84 Total $ 548 $ 472 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
DEBT [Abstract] | |
Short-term Notes and Loans Payable | 2015 2014 Commercial paper $ 93 $ 141 Foreign borrowings 2 2 Total $ 95 $ 143 |
Long-Term Debt, Net of Unamortized Discounts or Premiums | 2015 2014 Senior unsecured notes and debentures: 5.00 575 $ - $ 575 3.55 300 300 300 5.95 400 399 399 3.80 300 298 298 3.05 600 599 598 3.50 500 500 - Total 2,096 2,170 Less: Current maturities of long-term debt (300 ) (575 ) Long-term debt $ 1,796 $ 1,595 |
Borrowing Capacity Under Other Financing Arrangements | 2015 2014 Revolving credit facility $ 1,100 $ 1,100 Foreign credit lines 11 31 Other credit lines 18 13 Total $ 1,129 $ 1,144 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
OTHER LIABILITIES [Abstract] | |
Schedule of Other Liabilities | 2015 2014 Employee benefit obligations $ 299 $ 289 Venture agreement net terminal obligation 294 290 Taxes 38 76 Other 119 113 Total $ 750 $ 768 |
FINANCIAL INSTRUMENTS AND FAI40
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value | 2015 2014 Balance sheet classification Fair value Carrying Estimated Carrying Estimated Assets Investments including money market funds (a) Cash and cash 1 $ 212 $ 212 $ 150 $ 150 Time deposits (a) Cash and cash 2 84 84 75 75 Foreign exchange derivative contracts Other current assets 2 1 1 - - Interest rate contracts Other current assets 2 - - - - Commodity purchase derivative contracts Other current assets 2 - - 1 1 Trust assets for nonqualified deferred compensation plans Other assets 1 38 38 31 31 $ 335 $ 335 $ 257 $ 257 Liabilities Commodity purchase derivative contracts Accrued liabilities 2 $ 8 $ 8 $ 1 $ 1 Interest rate derivative contracts Accrued liabilities 2 - - 13 13 Foreign exchange derivative contracts Accrued liabilities 2 - - 3 3 Commodity purchase derivative contracts Other liabilities 2 - - - - Notes and loans payable (b) Notes and loans 2 95 95 143 143 Long-term debt (c) Other liabilities 2 2,096 2,137 2,170 2,265 $ 2,199 $ 2,240 $ 2,330 $ 2,425 (a) 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 equivalents are recorded at cost, which approximates fair value. (b) Short-term debt is composed of U.S. commercial paper and/or other similar short-term debts issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value. (c) Long-term debt, which is recorded at cost, includes the current portion of debt instruments, which approximates fair value. The fair value of long-term debt was determined using secondary market prices quoted by corporate bond dealers, and was classified as Level 2. |
Effects of Derivative Instruments Designated as Hedging Instruments on OCI | Gains (losses) recognized in other comprehensive net loss Gains (losses) reclassified from accumulated other comprehensive net and recognized in earnings 2015 2014 2013 2015 2014 2013 Commodity purchase derivative contracts $ (13 ) $ 2 $ (1 ) $ (5 ) $ - $ - Interest rate derivative contracts (12 ) (13 ) (1 ) (5 ) (4 ) (3 ) Foreign exchange derivative contracts 7 (3 ) 3 3 4 - Total $ (18 ) $ (14 ) $ 1 $ (7 ) $ - $ (3 ) |
LEASES AND OTHER COMMITMENTS (T
LEASES AND OTHER COMMITMENTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
LEASES AND OTHER COMMITMENTS [Abstract] | |
Schedule of future minimum annual lease commitments required under existing non-cancelable operating and capital lease agreements | Operating Capital Year leases leases 2016 $ 50 $ 3 2017 46 3 2018 42 2 2019 34 1 2020 29 - Thereafter 100 - Total $ 301 $ 9 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
STOCKHOLDERS' EQUITY [Abstract] | |
Schedule of Share Repurchases under Authorized Programs | 2015 2014 2013 Amount Shares Amount Shares Amount Shares Open-market purchase programs $ - - $ - - $ - - Evergreen Program 434 4,016 260 3,046 128 1,500 Total $ 434 4,016 $ 260 3,046 $ 128 1,500 |
Schedule of Changes in Accumulated Other Comprehensive Net (Losses) Income | 2015 2014 2013 Foreign currency adjustments Other comprehensive (loss) income before reclassifications $ (92 ) $ (26 ) $ (16 ) Amounts reclassified from accumulated other comprehensive net losses: Recognition of deferred foreign currency translation loss 30 - - Income tax benefit (expense) 8 (11 ) 5 Foreign currency adjustments, net of tax $ (54 ) $ (37 ) $ (11 ) Net unrealized (losses) gains on derivatives Other comprehensive income (loss) before reclassifications $ (18 ) $ (15 ) $ 1 Amounts reclassified from accumulated other comprehensive net losses 7 - 3 Income tax (expense) benefit (3 ) 6 (1 ) Net unrealized (losses) gains on derivatives, net of tax $ (14 ) $ (9 ) $ 3 Pension and postretirement benefit adjustments Other comprehensive (loss) income before reclassifications $ (29 ) $ (16 ) $ 49 Amounts reclassified from accumulated other comprehensive net losses - 8 10 Income tax benefit (expense) 12 4 (22 ) Pension and postretirement benefit adjustments, net of tax $ (17 ) $ (4 ) $ 37 Total changes in other comprehensive (losses) income, net of tax $ (85 ) $ (50 ) $ 29 |
NET EARNINGS PER SHARE (EPS) (T
NET EARNINGS PER SHARE (EPS) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
NET EARNINGS PER SHARE (EPS) [Abstract] | |
Schedule of Weighted Average Number of Shares Outstanding | 2015 2014 2013 Basic 130,310 129,558 131,075 Dilutive effect of stock options and other 2,466 2,184 1,894 Diluted 132,776 131,742 132,969 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
STOCK-BASED COMPENSATION PLANS [Abstract] | |
Schedule of Stock-based Compensation | 2015 2014 2013 Cost of products sold $ 4 $ 4 $ 4 Selling and administrative expenses 25 29 28 Research and development costs 3 3 3 Total compensation cost $ 32 $ 36 $ 35 Related income tax benefit $ 12 $ 13 $ 13 |
Schedule of Stock Option Valuation Assumptions | 2015 2014 2013 Expected life 5.6 5.8 5.7 5.7 Weighted-average expected life 5.7 5.7 5.7 Expected volatility 16.3 18.6 18.4 18.5 18.7 19.2 Weighted-average volatility 16.6 18.5 19.1 Risk-free interest rate 1.4 2.0 1.8 1.9 0.6 0.8 Weighted-average risk-free interest rate 1.9 1.8 0.7 Dividend yield 2.8 3.4 3.4 3.2 3.6 Weighted-average dividend yield 3.3 3.4 3.6 |
Summary of Stock Option Activity | Weighted- Average Average Number of Exercise Remaining Aggregate Shares Price Contractual Intrinsic (In thousands) per Share Life Value Options outstanding as of June 30, 2014 10,368 $ 69 6 $ 232 Granted 1,895 91 Exercised (3,605) 64 Cancelled (301) 82 Options outstanding as of June 30, 2015 8,357 $ 76 7 $ 236 Options vested as of June 30, 2015 4,094 $ 68 5 $ 148 |
Summary of Restricted Stock Award Activity | Weighted-Average Number of Grant Date Shares Fair Value (In thousands) per Share Restricted stock awards as of June 30, 2014 21 $ 81 Granted 10 96 Vested (8) 78 Forfeited (5) 81 Restricted stock awards as of June 30, 2015 18 $ 91 |
Summary of Performance Units Award Activity | Weighted-Average Number of Grant Date Shares Fair Value (In thousands) per Share Performance unit awards as of June 30, 2014 1,221 $ 73 Granted 332 90 Distributed (349) 68 Forfeited (81) 80 Performance unit awards as of June 30, 2015 1,123 $ 79 Perfomance units vested and deferred as of June 30, 2015 179 $ 58 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
OTHER INCOME, NET [Abstract] | |
Major Components of Other Income, Net | 2015 2014 2013 Income from equity investees $ (14 ) $ (13 ) $ (12 ) Low income housing partnership gains, net (13 ) - (2 ) Interest income (4 ) (3 ) (3 ) Income from transition and related services (1 ) (1 ) (3 ) Foreign exchange transaction losses, net 9 1 8 Amortization of trademarks and other intangible assets 8 8 9 Intangible asset impairment charges 3 3 - Restructuring charges 2 - - Insurance and other settlements - (5 ) - Other (3 ) - (1 ) Total $ (13 ) $ (10 ) $ (4 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
INCOME TAXES [Abstract] | |
Provision for Income Taxes on Continuing Operations by Tax Jurisdiction | 2015 2014 2013 Current Federal $ 265 $ 247 $ 245 State 28 34 23 Foreign 38 45 19 Total current 331 326 287 Deferred Federal (13 ) (19 ) (1 ) State (1 ) 2 (2 ) Foreign (2 ) (4 ) (5 ) Total deferred (16 ) (21 ) (8 ) Total $ 315 $ 305 $ 279 |
Earnings from Continuing Operations before Income Taxes, by Tax Jurisdiction | 2015 2014 2013 United States $ 829 $ 754 $ 724 Foreign 92 130 128 Total $ 921 $ 884 $ 852 |
Effective Income Tax Rate Reconciliation | 2015 2014 2013 Statutory federal tax rate 35.0 % 35.0 % 35.0 % State taxes (net of federal tax benefits) 2.1 2.6 1.7 Tax differential on foreign earnings (0.3) (0.3 ) (2.9 ) Domestic manufacturing deduction (2.1) (2.3 ) (2.3 ) Change in valuation allowance 0.6 0.6 0.7 Other differences (1.1) (1.0 ) 0.5 Effective tax rate 34.2 % 34.6 % 32.7 % |
Current and Noncurrent Deferred Tax Assets and Liabilities | 2015 2014 Deferred tax assets Compensation and benefit programs $ 191 $ 171 Basis difference related to Venture Agreement 30 30 Accruals and reserves 43 53 Inventory costs 19 20 Net operating loss and tax credit carryforwards 41 37 Other 61 63 Subtotal 385 374 Valuation allowance (34 ) (51 ) Total deferred tax assets 351 323 Deferred tax liabilities Fixed and intangible assets (277 ) (269 ) Low-income housing partnerships (22 ) (24 ) Unremitted foreign earnings (7 ) (8 ) Other (24 ) (26 ) Total deferred tax liabilities (330 ) (327 ) Net deferred tax assets (liabilities) $ 21 $ (4 ) |
Summary of Deferred Tax Asset Valuation Allowance | 2015 2014 Valuation allowance at beginning of year $ (51 ) $ (36 ) Net decrease/ (increase) 15 (12 ) Net decrease/(increase ) 2 (3 ) Valuation allowance at end of year $ (34 ) $ (51 ) |
Reconciliation of Gross Unrecognized Tax Benefits | 2015 2014 2013 Unrecognized tax benefits at beginning of year $ 71 $ 69 $ 80 Gross increases - tax positions in prior periods 3 3 3 Gross decreases - tax positions in prior periods (8 ) (5 ) (19 ) Gross increases - current period tax positions 6 7 7 Gross decreases - current period tax positions - - - Lapse of applicable statute of limitations (34 ) (1 ) (2 ) Settlements - (2 ) - Unrecognized tax benefits at end of year $ 38 $ 71 $ 69 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Retirement Retirement Income Health Care 2015 2014 2015 2014 Change in benefit obligations: Projected benefit obligation as of beginning of year $ 641 $ 612 $ 49 $ 51 Service cost 2 3 - 1 Interest cost 25 27 2 2 Actuarial loss (gain) 14 47 - (2 ) Plan amendments - - (1 ) (2 ) Translation and other adjustments (5 ) (6 ) (2 ) - Benefits paid (38 ) (42 ) (3 ) (1 ) Projected benefit obligation as of end of year 639 641 45 49 Change in plan assets: Fair value of assets as of beginning of year $ 432 $ 408 $ - $ - Actual return on plan assets 6 51 - - Employer contributions to nonqualified plans 13 15 3 1 Benefits paid (38 ) (42 ) (3 ) (1 ) Translation adjustment (4 ) - - - Fair value of plan assets as of end of year 409 432 - - Accrued benefit cost, net funded status $ (230 ) $ (209 ) $ (45 ) $ (49 ) Amount recognized in the balance sheets consists of: Pension benefit assets $ 2 $ 2 $ - $ - Current accrued benefit liability (16 ) (14 ) (3 ) (4 ) Non-current accrued benefit liability (216 ) (197 ) (42 ) (45 ) Accrued benefit cost, net $ (230 ) $ (209 ) $ (45 ) $ (49 ) |
Schedule of Accumulated Benefit Obligations in Excess of Plan Assets | Other Pension Plans Retirement Plans 2015 2014 2015 2014 Projected benefit obligation $ 538 $ 538 $ 80 $ 78 Accumulated benefit obligation 538 538 80 78 Fair value of plan assets 385 405 - - |
Schedule of Components of Net Periodic Benefit Cost | Retirement Income Retirement Health Care 2015 2014 2013 2015 2014 2013 Service cost $ 2 $ 3 $ 4 $ - $ 1 $ 1 Interest cost 25 27 24 2 2 2 Expected return on plan assets (20 ) (25 ) (29 ) - - - Amortization of unrecognized items 12 11 12 2 (4 ) (2 ) Total $ 19 $ 16 $ 11 $ 4 $ (1 ) $ 1 |
Schedule of Items Not Yet Recognized as a Component of Postretirement Expense | Retirement Retirement Income Health Care Net actuarial loss (gain) $ 264 $ (17 ) Prior service benefit - (7 ) Net deferred income tax (assets) liabilities (98 ) 8 Accumulated other comprehensive loss (income) $ 166 $ (16 ) |
Summary of Amounts Recognized in Accumulated Other Comprehensive Net Losses | Retirement Retirement Income Health Care Net actuarial loss (gain) as of beginning of year $ 247 $ (29 ) Amortization during the year (12 ) 13 Loss (gain) during the year 29 (1 ) Net actuarial loss (gain) as of end of year $ 264 $ (17 ) |
Schedule of Weighted Average Assumptions Used | Retirement Income Retirement Health Care 2015 2014 2015 2014 Discount rate 4.20 % 4.05 % 4.16 % 4.00 % Rate of compensation increase 3.37 % 4.46 % n/a n/a Retirement Income 2015 2014 2013 Discount rate 4.05 % 4.39 % 3.87 % Rate of compensation increase 4.46 % 3.44 % 3.71 % Expected return on plan assets 5.28 % 6.61 % 7.50 % Retirement Health Care 2015 2014 2013 Discount rate 4.00 % 4.33 % 3.86 % |
Schedule of Expected Benefit Payments | Retirement Retirement Income Health Care 2016 $ 41 $ 4 2017 42 3 2018 43 3 2019 40 3 2020 41 3 Fiscal years 2021 through 2025 210 12 |
Schedule of Target Weighted Average Asset Allocations | % Target Allocation % of Plan Assets 2015 2014 2015 2014 U.S. equity 11 % 11 % 11 % 11 % International equity 12 12 12 12 Fixed income 74 74 74 74 Other 3 3 3 3 Total 100 % 100 % 100 % 100 % |
Schedule of Plan Assets Carried at Fair Value | 2015 Level 1 Level 2 Total Cash equivalents $ 3 $ - $ 3 Common collective trusts Bond funds - 295 295 International equity funds - 59 59 Domestic equity funds - 41 41 Real estate fund - 11 11 Total common collective trusts - 406 406 Total assets at fair value $ 3 $ 406 $ 409 2014 Level 1 Level 2 Total Cash equivalents $ 3 $ - $ 3 Common collective trusts Bond funds - 309 309 International equity funds - 64 64 Domestic equity funds - 44 44 Real estate fund - 12 12 Total common collective trusts - 429 429 Total assets at fair value $ 3 $ 429 $ 432 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
SEGMENT REPORTING [Abstract] | |
Selected Financial Information Relating to the Company's Segments | Year Cleaning Household Lifestyle International Corporate Company Net sales 2015 $ 1,824 $ 1,794 $ 950 $ 1,087 $ - $ 5,655 2014 1,776 1,709 936 1,093 - 5,514 2013 1,783 1,693 929 1,128 - 5,533 Earnings (losses) from continuing operations before income taxes 2015 445 375 257 79 (235) 921 2014 428 326 258 99 (227 ) 884 2013 420 336 259 95 (258 ) 852 Income from equity investees 2015 - - - 14 - 14 2014 - - - 13 - 13 2013 - - - 12 - 12 Total assets 2015 876 725 860 1,057 646 4,164 2014 887 745 869 1,190 567 4,258 Capital expenditures 2015 35 50 11 25 4 125 2014 37 53 11 31 5 137 2013 57 72 19 24 18 190 Depreciation and amortization 2015 52 67 19 24 7 169 2014 49 67 19 25 17 177 2013 52 69 19 26 14 180 Significant noncash charges included in earnings from continuing operations before income taxes: Share-based compensation 2015 8 7 4 1 12 32 2014 11 9 5 1 10 36 2013 10 9 5 1 10 35 |
Net Sales and Long-Lived Assets By Geographic Area | Fiscal United Total Year States Foreign Company Net sales 2015 $ 4,609 $ 1,046 $ 5,655 2014 4,466 1,048 5,514 2013 4,448 1,085 5,533 Property, plant and equipment, net 2015 $ 801 $ 117 $ 918 2014 825 152 977 |
UNAUDITED QUARTERLY DATA (Table
UNAUDITED QUARTERLY DATA (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
UNAUDITED QUARTERLY DATA [Abstract] | |
Unaudited Quarterly Data | Quarters Ended September 30 December 31 March 31 June 30 Total Year Fiscal year ended June 30, 2015 Net sales $ 1,352 $ 1,345 $ 1,401 $ 1,557 $ 5,655 Cost of products sold $ 774 $ 773 $ 796 $ 847 $ 3,190 Earnings from continuing operations $ 145 $ 128 $ 144 $ 189 $ 606 (Losses) earnings from discontinued operations, net of tax $ (55 ) $ (3 ) $ 30 $ 2 $ (26 ) Net earnings $ 90 $ 125 $ 174 $ 191 $ 580 Per common share: Basic Continuing operations $ 1.12 $ 0.98 $ 1.09 $ 1.46 $ 4.65 Discontinued operations (0.42 ) (0.02 ) 0.22 0.02 (0.20 ) Basic net earnings per share $ 0.70 $ 0.96 $ 1.31 $ 1.48 $ 4.45 Diluted Continuing operations $ 1.10 $ 0.97 $ 1.08 $ 1.44 $ 4.57 Discontinued operations (0.42 ) (0.02 ) 0.22 0.02 (0.20 ) Diluted net earnings per share $ 0.68 $ 0.95 $ 1.30 $ 1.46 $ 4.37 Dividends declared per common share $ 0.74 $ 0.74 $ 0.74 $ 0.77 $ 2.99 Market price (NYSE) High $ 112.70 $ 112.65 $ 106.36 $ 98.31 $ 112.70 Low 103.77 102.95 95.19 86.03 86.03 Year-end 104.02 Fiscal year ended June 30, 2014 Net sales $ 1,343 $ 1,308 $ 1,366 $ 1,497 $ 5,514 Cost of products sold $ 759 $ 753 $ 791 $ 855 $ 3,158 Earnings from continuing operations $ 139 $ 118 $ 151 $ 171 $ 579 Losses from discontinued operations, net of tax $ (3 ) $ (3 ) $ (14 ) $ (1 ) $ (21 ) Net earnings $ 136 $ 115 $ 137 $ 170 $ 558 Per common share: Basic Continuing operations $ 1.07 $ 0.91 $ 1.16 $ 1.32 $ 4.47 Discontinued operations (0.03 ) (0.02 ) (0.11 ) - (0.16 ) Basic net earnings per share $ 1.04 $ 0.89 $ 1.05 $ 1.32 $ 4.31 Diluted Continuing operations $ 1.05 $ 0.90 $ 1.14 $ 1.30 $ 4.39 Discontinued operations (0.02 ) (0.03 ) (0.10 ) (0.01 ) (0.16 ) Diluted $ 1.03 $ 0.87 $ 1.04 $ 1.29 $ 4.23 Dividends declared per common share $ 0.71 $ 0.71 $ 0.71 $ 0.74 $ 2.87 Market price (NYSE) High $ 87.60 $ 96.76 $ 92.75 $ 93.43 $ 96.76 Low 81.25 80.20 83.70 86.56 80.20 Year-end 91.40 |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Cash Holdings) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||
U.S. dollar balances held by U.S. dollar functional currency subsidiaries and at parent | $ 221 | $ 180 | ||
Non-U.S. dollar balances held by non-U.S. dollar functional currency subsidiaries | 142 | 132 | ||
U.S. dollar balances held by non-U.S. dollar functional currency subsidiaries | 19 | 12 | ||
Non-U.S. dollar balances held by U.S. dollar functional currency subsidiaries | 0 | 5 | ||
Total | $ 382 | $ 329 | $ 299 | $ 267 |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives of Property, Plant and Equipment) (Details) | 12 Months Ended |
Jun. 30, 2015 | |
Minimum [Member] | Buildings and leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
Minimum [Member] | Land improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
Minimum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Minimum [Member] | Computer equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Minimum [Member] | Capitalized software costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Maximum [Member] | Buildings and leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 40 years |
Maximum [Member] | Land improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 30 years |
Maximum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 15 years |
Maximum [Member] | Computer equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Maximum [Member] | Capitalized software costs [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Additional Information) (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($)item | Jun. 30, 2013USD ($)item | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Performance period for performance awards | 3 years | ||
Additional compensation expense, target cap | 150.00% | ||
Minimum actuarial gains amortized to pension expense | 5.00% | ||
Allowance for doubtful accounts, net of tax | $ 4 | $ 3 | |
Non-customer receivables | 12 | 15 | |
New packaging development and design costs | $ 11 | $ 12 | $ 10 |
Number of hedging instruments designated as fair value hedges | item | 0 | 0 | 0 |
DISCONTINUED OPERATIONS (Summar
DISCONTINUED OPERATIONS (Summary of (Losses) Gains from Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Total Gain (Losses) from discontinued operations, net of tax | $ 2 | $ 30 | $ (3) | $ (55) | $ (1) | $ (14) | $ (3) | $ (3) | $ (26) | $ (21) | $ (1) |
Unrecognized tax benefits | |||||||||||
Gross unrecognized tax benefits recognized upon the expiration of the applicable statute of limitations | 34 | 1 | 2 | ||||||||
Clorox Venezuela [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net sales | 11 | 77 | 90 | ||||||||
Operating (losses) earnings from discontinued operations before income taxes | (6) | (23) | 1 | ||||||||
Exit costs and other related expenses for Clorox Venezuela | (78) | 0 | 0 | ||||||||
Total losses from discontinued operations before income taxes | (84) | (23) | 1 | ||||||||
Income tax benefit attributable to discontinued operations | 29 | 6 | 0 | ||||||||
Total Gain (Losses) from discontinued operations, net of tax | (55) | (17) | 1 | ||||||||
Other Discontinued Operations [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Total Gain (Losses) from discontinued operations, net of tax | 29 | $ (4) | $ (2) | ||||||||
Unrecognized tax benefits | |||||||||||
Gross unrecognized tax benefits recognized upon the expiration of the applicable statute of limitations | $ 32 |
DISCONTINUED OPERATIONS (Summ54
DISCONTINUED OPERATIONS (Summary of Operating Losses, Asset Charges and Other Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Total Gain (Losses) from discontinued operations, net of tax | $ 2 | $ 30 | $ (3) | $ (55) | $ (1) | $ (14) | $ (3) | $ (3) | $ (26) | $ (21) | $ (1) |
Latin America [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Noncash goodwill impairment | $ 0 | ||||||||||
Other exit and business termination costs: | |||||||||||
Percentage of fair value of the reporting unit in excess of recorded value | 79.00% | 79.00% | |||||||||
Clorox Venezuela [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Operating losses before income taxes | $ (6) | (23) | 1 | ||||||||
Total losses from discontinued operations before income taxes | (84) | (23) | 1 | ||||||||
Income tax benefit attributable to discontinued operations | 29 | 6 | 0 | ||||||||
Total Gain (Losses) from discontinued operations, net of tax | (55) | $ (17) | $ 1 | ||||||||
Net asset charges: | |||||||||||
Inventories | (11) | ||||||||||
Property, plant and equipment | (16) | ||||||||||
Trademark and other intangible assets | (6) | ||||||||||
Other assets | (2) | ||||||||||
Other exit and business termination costs: | |||||||||||
Severance | (3) | ||||||||||
Recognition of deferred foreign currency translation loss | (30) | ||||||||||
Other | (10) | ||||||||||
Other Discontinued Operation [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Total Gain (Losses) from discontinued operations, net of tax | $ 30 | $ 29 |
DISCONTINUED OPERATIONS (Narrat
DISCONTINUED OPERATIONS (Narrative) (Details) - Clorox Venezuela [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Major Classes of Remaining Assets and Liabilities | ||
Net asset position | $ 0 | $ 42 |
Corporate [Member] | ||
Major Classes of Remaining Assets and Liabilities | ||
Tax asset balances | $ 13 | $ 17 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
INVENTORIES [Abstract] | |||
Finished goods | $ 316 | $ 312 | |
Raw materials and packaging | 101 | 108 | |
Work in process | 3 | 2 | |
LIFO allowances | (35) | (36) | |
Total | $ 385 | $ 386 | |
Percentage of inventory valued with the LIFO method | 38.00% | 34.00% | |
Effect on earnings of the liquidation of LIFO layers | $ 0 | $ 2 | $ 3 |
Inventory consigned to others | $ 2 | $ 4 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
OTHER CURRENT ASSETS [Abstract] | ||
Deferred tax assets | $ 99 | $ 81 |
Prepaid expenses | 39 | 42 |
Other | 5 | 11 |
Total | 143 | 134 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 3 | 9 |
Escrow [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 3 | 3 |
Foreign subsidiary, prepayment for intercompany services [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 0 | $ 5 |
PROPERTY, PLANT AND EQUIPMENT58
PROPERTY, PLANT AND EQUIPMENT, NET (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense related to property, plant and equipment, net | $ 157 | $ 161 | $ 162 |
Property, plant and equipment | 2,757 | 2,753 | |
Less: accumulated depreciation and amortization | (1,839) | (1,776) | |
Total | 918 | 977 | |
Liabilities incurred | 2 | ||
Non-cash capital expenditures | 18 | 0 | 0 |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 1,608 | 1,593 | |
Equipment held under capital leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 12 | 0 | |
Less: accumulated depreciation and amortization | 2 | 0 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 515 | 506 | |
Capitalized software costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 371 | 374 | |
Amortization | 19 | 22 | $ 21 |
Land and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 122 | 122 | |
Asset retirement obligations | $ 2 | 0 | |
Number of leased properties | item | 2 | ||
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 65 | 79 | |
Computer equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 76 | $ 79 |
GOODWILL, TRADEMARKS AND OTHE59
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS [Abstract] | ||||
Amortization expense of intangible assets | $ 12 | $ 15 | $ 15 | |
Trademark impairment | 4 | |||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | 882 | 902 | ||
Future amortization expense: | ||||
2,016 | 8 | |||
2,017 | 8 | |||
2,018 | 7 | |||
2,019 | 7 | |||
2,020 | $ 6 | |||
Impairment of trademarks and other intangible assets | $ 6 | |||
Other Intangible Assets [Member] | Exclusive Manufacturing Agreement [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | $ 4 | |||
Useful life | 7 years | |||
Renewal period | 3 years |
GOODWILL, TRADEMARKS AND OTHE60
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Line Items] | ||
Goodwill, beginning balance | $ 1,101 | $ 1,105 |
Effect of foreign currency translation | (34) | (4) |
Goodwill, ending balance | 1,067 | 1,101 |
Cleaning [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 323 | 323 |
Effect of foreign currency translation | 0 | 0 |
Goodwill, ending balance | 323 | 323 |
Lifestyle [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 244 | 244 |
Effect of foreign currency translation | 0 | 0 |
Goodwill, ending balance | 244 | 244 |
Household [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 85 | 85 |
Effect of foreign currency translation | 0 | 0 |
Goodwill, ending balance | 85 | 85 |
International [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 449 | 453 |
Effect of foreign currency translation | (34) | (4) |
Goodwill, ending balance | $ 415 | $ 449 |
GOODWILL, TRADEMARKS AND OTHE61
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Schedule of Intangible Assets, Excluding Goodwill) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 882 | $ 902 |
Accumulated amortization | 297 | 291 |
Net carrying amount | 585 | 611 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 33 | 36 |
Accumulated amortization | 22 | 22 |
Net carrying amount | 11 | 14 |
Technology and Product formulae [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 137 | 139 |
Accumulated amortization | 133 | 129 |
Net carrying amount | 4 | 10 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 188 | 194 |
Accumulated amortization | 142 | 140 |
Net carrying amount | 46 | 54 |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks not subject to amortization | $ 524 | $ 533 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
ACCRUED LIABILITIES [Abstract] | ||
Compensation and employee benefit costs | $ 189 | $ 102 |
Trade and sales promotion | 115 | 113 |
Dividends | 103 | 100 |
Royalties | 16 | 11 |
Insurance | 15 | 18 |
Interest | 14 | 27 |
Derivatives | 8 | 17 |
Other | 88 | 84 |
Total | $ 548 | $ 472 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2015 | Mar. 31, 2013 | Oct. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2014 | |
Long-term and Short-term Debt [Line Items] | ||||||||
Long-term debt repayments | $ 575 | $ 0 | $ 850 | |||||
Weighted average interest rate on notes and loans payable | 2.05% | 0.97% | 1.68% | |||||
Weighted average interest rates on long-term debt, including the effect of interest rate swaps | 4.44% | 4.56% | 4.76% | |||||
Weighted average interest rates on long-term debt | 4.31% | 4.56% | ||||||
Line of credit facility, borrowing capacity | $ 1,129 | $ 1,144 | ||||||
Long-term debt maturities: | ||||||||
2,016 | 300 | |||||||
2,017 | 0 | |||||||
2,018 | 400 | |||||||
2,019 | 0 | |||||||
2,020 | 0 | |||||||
Thereafter | $ 1,400 | |||||||
Commercial Paper [Member] | ||||||||
Long-term and Short-term Debt [Line Items] | ||||||||
Weighted average interest rate on short-term debt | 0.39% | 0.28% | ||||||
Revolving Line of Credit [Member] | ||||||||
Long-term and Short-term Debt [Line Items] | ||||||||
Line of credit facility, expiration date | Oct. 1, 2019 | |||||||
Line of credit facility, borrowing capacity | $ 1,100 | $ 1,100 | ||||||
Line of credit facility, amount outstanding | 0 | 0 | ||||||
Foreign and Other Credit Lines [Member] | ||||||||
Long-term and Short-term Debt [Line Items] | ||||||||
Line of credit facility, borrowing capacity | 29 | 44 | ||||||
Line of credit facility, amount outstanding | 4 | 5 | ||||||
Line of credit facility, remaining borrowing capacity | $ 25 | 39 | ||||||
Foreign and Other Credit Lines [Member] | Venezuelan Subsidiary [Member] | ||||||||
Long-term and Short-term Debt [Line Items] | ||||||||
Line of credit facility, borrowing capacity | 7 | |||||||
Line of credit facility, amount outstanding | $ 1 | |||||||
Senior notes with an annual fixed interest rate of 3.50% [Member] | ||||||||
Long-term and Short-term Debt [Line Items] | ||||||||
Long-term debt issuance | $ 500 | |||||||
Fixed interest rate | 3.50% | |||||||
Effective interest rate (as a percent) | 4.10% | |||||||
Senior notes with an annual fixed interest rate of 5.00% [Member] | ||||||||
Long-term and Short-term Debt [Line Items] | ||||||||
Long-term debt repayments | $ 575 | |||||||
Fixed interest rate | 5.00% | |||||||
New Senior Notes [Member] | ||||||||
Long-term and Short-term Debt [Line Items] | ||||||||
Long-term debt issuance | $ 600 | |||||||
Fixed interest rate | 3.05% | |||||||
Maturity date | Sep. 15, 2022 | |||||||
Repaid Senior Notes [Member] | ||||||||
Long-term and Short-term Debt [Line Items] | ||||||||
Long-term debt repayments | $ 500 | $ 350 | ||||||
Fixed interest rate | 5.00% | 5.45% |
DEBT (Notes and Loans Payable)
DEBT (Notes and Loans Payable) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Short-term Debt [Line Items] | ||
Notes and loans payable | $ 95 | $ 143 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Notes and loans payable | 93 | 141 |
Foreign Borrowings [Member] | ||
Short-term Debt [Line Items] | ||
Notes and loans payable | $ 2 | $ 2 |
DEBT (Long-term Debt, Net of Un
DEBT (Long-term Debt, Net of Unamortized Discounts or Premiums) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Debt Instrument [Line Items] | ||
Weighted average interest rate on long-term debt | 4.31% | 4.56% |
Long-term debt | $ 2,096 | $ 2,170 |
Less: Current maturities of long-term debt | (300) | (575) |
Long-term debt, noncurrent | $ 1,796 | $ 1,595 |
Senior Unsecured Long-Term Notes and Debentures; 5.00%, $575 Due January 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on long-term debt | 5.00% | 5.00% |
Face value | $ 575 | $ 575 |
Long-term debt | $ 0 | $ 575 |
Senior Unsecured Long-Term Notes and Debentures; 3.55%, $300 Due November 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on long-term debt | 3.55% | 3.55% |
Face value | $ 300 | $ 300 |
Long-term debt | $ 300 | $ 300 |
Senior Unsecured Long-Term Notes and Debentures; 5.95%, $400 Due October 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on long-term debt | 5.95% | 5.95% |
Face value | $ 400 | $ 400 |
Long-term debt | $ 399 | $ 399 |
Senior Unsecured Long Term Notes and Debenturest; 3.80%, $300 Due November 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on long-term debt | 3.80% | 3.80% |
Face value | $ 300 | $ 300 |
Long-term debt | $ 298 | $ 298 |
Senior Unsecured Long Term Notes and Debtentures; 3.05%, $600 due September 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on long-term debt | 3.05% | 3.05% |
Face value | $ 600 | $ 600 |
Long-term debt | $ 599 | $ 598 |
Senior Unsecured Long Term Notes and Debtentures; 3.50%, $500 due December 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on long-term debt | 3.50% | 3.50% |
Face value | $ 500 | $ 500 |
Long-term debt | $ 500 | $ 0 |
DEBT (Borrowing Capacity Under
DEBT (Borrowing Capacity Under Other Financing Arrangements) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Line of Credit Facility [Line Items] | ||
Line of credit facility, borrowing capacity | $ 1,129 | $ 1,144 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, borrowing capacity | 1,100 | 1,100 |
Foreign Credit Lines [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, borrowing capacity | 11 | 31 |
Other Credit Lines [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, borrowing capacity | $ 18 | $ 13 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
OTHER LIABILITIES [Abstract] | ||||
Employee benefit obligations | $ 299 | $ 289 | ||
Venture agreement net terminal obligation | 294 | 290 | ||
Taxes | 38 | 76 | ||
Other | 119 | 113 | ||
Total | $ 750 | $ 768 | ||
Interest in the joint venture by venture partner | 20.00% | 20.00% | ||
Agreement term | 20 years | |||
Venture agreement renewal option | 10 years | |||
Proceeds from sale-leasebacks, net of transaction costs | $ 108 | $ 0 | $ 0 | $ 135 |
Lease term | 15 years | |||
Deferred gain on sale-lease back, noncurrent portion | $ 40 | $ 43 |
FINANCIAL INSTRUMENTS AND FAI68
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2014 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | ||||
Non-qualified deferred compensation plan assets, changes in fair value of trust assets | $ 7 | |||
Derivative [Line Items] | ||||
Settlement of interest rate forward contracts | 25 | $ 0 | $ 0 | |
Derivatives | 8 | 17 | ||
Derivative instruments subject to contractually defined counterparty liability position limits | 8 | 11 | ||
Estimated amount of the existing net loss to be reclassified into earnings in the next 12 months | $ 13 | |||
Senior notes with an annual fixed interest rate of 3.50% [Member] | ||||
Derivative [Line Items] | ||||
Debt issued | $ 500 | |||
Commodity purchase derivative contracts [Member] | ||||
Derivative [Line Items] | ||||
Maximum contract duration | 2 years | |||
Notional amounts | $ 47 | 36 | ||
Cash margin balances amount | $ 2 | 1 | ||
Interest rate derivative contracts | ||||
Derivative [Line Items] | ||||
Maximum contract duration | 12 months | |||
Notional amounts | $ 0 | 288 | ||
Amortization period of settlement payment | 10 years | |||
Foreign exchange derivative contracts [Member] | ||||
Derivative [Line Items] | ||||
Maximum contract duration | 16 months | |||
Soybean Oil [Member] | Commodity purchase derivative contracts [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | $ 20 | 17 | ||
Jet Fuel [Member] | Commodity purchase derivative contracts [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 27 | 19 | ||
Australia [Member] | Foreign exchange derivative contracts [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 35 | 28 | ||
Canada [Member] | Foreign exchange derivative contracts [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 64 | 54 | ||
New Zealand [Member] | Foreign exchange derivative contracts [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | $ 6 | $ 5 |
FINANCIAL INSTRUMENTS AND FAI69
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 | |
Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets | $ 335 | $ 257 | |
Liabilities | 2,199 | 2,330 | |
Estimated Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets | 335 | 257 | |
Liabilities | 2,240 | 2,425 | |
Other assets [Member] | Level 1 [Member] | Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Trust assets for nonqualified deferred compensation plans | 38 | 31 | |
Other assets [Member] | Level 1 [Member] | Estimated Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Trust assets for nonqualified deferred compensation plans | 38 | 31 | |
Notes and loans payable [Member] | Level 2 [Member] | Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Liabilities | [1] | 95 | 143 |
Notes and loans payable [Member] | Level 2 [Member] | Estimated Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Liabilities | [1] | 95 | 143 |
Other liabilities [Member] | Level 2 [Member] | Long-term debt (c) | Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Liabilities | [2] | 2,096 | 2,170 |
Other liabilities [Member] | Level 2 [Member] | Long-term debt (c) | Estimated Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Liabilities | [2] | 2,137 | 2,265 |
Cash and cash Equivalents [Member] | Level 1 [Member] | Carrying Value [Member] | Investments including money market funds (a) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets | [3] | 212 | 150 |
Cash and cash Equivalents [Member] | Level 1 [Member] | Estimated Fair Value [Member] | Investments including money market funds (a) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets | [3] | 212 | 150 |
Cash and cash Equivalents [Member] | Level 2 [Member] | Carrying Value [Member] | Time deposits (a) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets | [3] | 84 | 75 |
Cash and cash Equivalents [Member] | Level 2 [Member] | Estimated Fair Value [Member] | Time deposits (a) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets | [3] | 84 | 75 |
Commodity purchase derivative contracts [Member] | Other Current Assets [Member] | Level 2 [Member] | Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets designated as hedging instruments | 0 | 1 | |
Commodity purchase derivative contracts [Member] | Other Current Assets [Member] | Level 2 [Member] | Estimated Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets designated as hedging instruments | 0 | 1 | |
Commodity purchase derivative contracts [Member] | Accrued Liabilities [Member] | Level 2 [Member] | Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative liabilities designated as hedging instruments | 8 | 1 | |
Commodity purchase derivative contracts [Member] | Accrued Liabilities [Member] | Level 2 [Member] | Estimated Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative liabilities designated as hedging instruments | 8 | 1 | |
Interest rate derivative contracts [Member] | Accrued Liabilities [Member] | Level 2 [Member] | Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative liabilities designated as hedging instruments | 0 | 13 | |
Interest rate derivative contracts [Member] | Accrued Liabilities [Member] | Level 2 [Member] | Estimated Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative liabilities designated as hedging instruments | 0 | 13 | |
Foreign exchange derivative contracts [Member] | Other Current Assets [Member] | Level 2 [Member] | Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets designated as hedging instruments | 1 | 0 | |
Foreign exchange derivative contracts [Member] | Other Current Assets [Member] | Level 2 [Member] | Estimated Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative assets designated as hedging instruments | 1 | 0 | |
Foreign exchange derivative contracts [Member] | Accrued Liabilities [Member] | Level 2 [Member] | Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative liabilities designated as hedging instruments | 0 | 3 | |
Foreign exchange derivative contracts [Member] | Accrued Liabilities [Member] | Level 2 [Member] | Estimated Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative liabilities designated as hedging instruments | $ 0 | $ 3 | |
[1] | Short-term debt is composed of U.S. commercial paper and/or other similar short-term debts issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value. | ||
[2] | Long-term debt, which is recorded at cost, includes the current portion of debt instruments, which approximates fair value. The fair value of long-term debt was determined using secondary market prices quoted by corporate bond dealers, and was classified as Level 2. | ||
[3] | 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 equivalents are recorded at cost, which approximates fair value. |
FINANCIAL INSTRUMENTS AND FAI70
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of the Effects of Derivative Instruments Designated as Hedging Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in other comprehensive net loss | $ (18) | $ (14) | $ 1 |
Gains (losses) reclassified from accumulated other comprehensive net loss and recognized in earnings | (7) | 0 | (3) |
Commodity Purchase Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in other comprehensive net loss | (13) | 2 | (1) |
Gains (losses) reclassified from accumulated other comprehensive net loss and recognized in earnings | (5) | 0 | 0 |
Interest rate derivative contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in other comprehensive net loss | (12) | (13) | (1) |
Gains (losses) reclassified from accumulated other comprehensive net loss and recognized in earnings | (5) | (4) | (3) |
Foreign Exchange Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in other comprehensive net loss | 7 | (3) | 3 |
Gains (losses) reclassified from accumulated other comprehensive net loss and recognized in earnings | $ 3 | $ 4 | $ 0 |
OTHER CONTINGENCIES AND GUARA71
OTHER CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OTHER CONTINGENCIES AND GUARANTEES [Abstract] | ||
Liability for aggregate future remediation costs | $ 12 | $ 14 |
Percentage of liability for aggregate remediation and associated costs, other than legal fees | 24.30% | |
Remediation period | 30 years | |
Current value of judgment | $ 32 | |
Estimated range of loss in excess of amounts accrued, minimum | 0 | |
Estimated range of loss in excess of amounts accrued, maximum | 26 | |
Letter of credit | 11 | |
Letter of credit, amount outstanding | $ 0 |
LEASES AND OTHER COMMITMENTS (N
LEASES AND OTHER COMMITMENTS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Purchase obligations: | |||
2,016 | $ 176 | ||
2,017 | 57 | ||
2,018 | 37 | ||
2,019 | 30 | ||
2,020 | 7 | ||
Thereafter | 0 | ||
Operating Leased Assets [Line Items] | |||
Rent expense for all operating leases | 76 | $ 71 | $ 71 |
Future minimum rental payments: | |||
2,016 | 50 | ||
2,017 | 46 | ||
2,018 | 42 | ||
2,019 | 34 | ||
2,020 | 29 | ||
Thereafter | 100 | ||
Corporate Headquarters and Primary Research and Development Facility [Member] | |||
Future minimum rental payments: | |||
2,016 | 6 | ||
2,017 | 7 | ||
2,018 | 7 | ||
2,019 | 7 | ||
2,020 | 7 | ||
Thereafter | $ 22 |
LEASES AND OTHER COMMITMENTS (S
LEASES AND OTHER COMMITMENTS (Schedule of Future Minimum Annual Lease Commitments Required under Existing Non-cancelable Operating and Capital Lease Agreements) (Details) $ in Millions | Jun. 30, 2015USD ($) |
Operating leases | |
2,016 | $ 50 |
2,017 | 46 |
2,018 | 42 |
2,019 | 34 |
2,020 | 29 |
Thereafter | 100 |
Total | 301 |
Capital leases | |
2,016 | 3 |
2,017 | 3 |
2,018 | 2 |
2,019 | 1 |
2,020 | 0 |
Thereafter | 0 |
Total | $ 9 |
STOCKHOLDERS' EQUITY (Share Rep
STOCKHOLDERS' EQUITY (Share Repurchase Programs) (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share Repurchase Programs [Line Items] | |||
Value of shares repurchased | $ 434 | $ 260 | $ 128 |
Shares repurchased | 4,016 | 3,046 | 1,500 |
Open-market program [Member] | |||
Share Repurchase Programs [Line Items] | |||
Authorized repurchase amount | $ 750 | ||
Remaining authorized repurchase amount | 750 | ||
Value of shares repurchased | $ 0 | $ 0 | $ 0 |
Shares repurchased | 0 | 0 | 0 |
Evergreen Program [Member] | |||
Share Repurchase Programs [Line Items] | |||
Value of shares repurchased | $ 434 | $ 260 | $ 128 |
Shares repurchased | 4,016 | 3,046 | 1,500 |
STOCKHOLDERS' EQUITY (Common St
STOCKHOLDERS' EQUITY (Common Stock Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
STOCKHOLDERS' EQUITY [Abstract] | |||||||||||
Dividends declared per common share | $ 0.77 | $ 0.74 | $ 0.74 | $ 0.74 | $ 0.74 | $ 0.71 | $ 0.71 | $ 0.71 | $ 2.99 | $ 2.87 | $ 2.63 |
Dividends paid per common share | $ 2.96 | $ 2.84 | $ 2.56 | ||||||||
Foreign currency adjustments | |||||||||||
Other comprehensive (loss) income before reclassifications | $ (92) | $ (26) | $ (16) | ||||||||
Amounts reclassified from accumulated other comprehensive net losses: | |||||||||||
Recognition of deferred foreign currency translation loss | 30 | 0 | 0 | ||||||||
Income tax benefit (expense) | 8 | (11) | 5 | ||||||||
Foreign currency adjustments, net of tax | (54) | (37) | (11) | ||||||||
Net unrealized (losses) gains on derivatives | |||||||||||
Other comprehensive income (loss) before reclassifications | (18) | (15) | 1 | ||||||||
Amounts reclassified from accumulated other comprehensive net losses | 7 | 0 | 3 | ||||||||
Income tax (expense) benefit | (3) | 6 | (1) | ||||||||
Net unrealized (losses) gains on derivatives, net of tax | (14) | (9) | 3 | ||||||||
Pension and postretirement benefit adjustments | |||||||||||
Other comprehensive (loss) income before reclassifications | (29) | (16) | 49 | ||||||||
Amounts reclassified from accumulated other comprehensive net losses | 0 | 8 | 10 | ||||||||
Income tax benefit (expense) | 12 | 4 | (22) | ||||||||
Pension and postretirement benefit adjustments, net of tax | (17) | (4) | 37 | ||||||||
Total changes in other comprehensive losses, net of tax | (85) | (50) | 29 | ||||||||
Long term intercompany loans [Member] | |||||||||||
Intercompany Foreign Currency Balance [Line Items] | |||||||||||
Other comprehensive loss before reclassifications | $ 9 | $ 12 | $ 1 | ||||||||
Amounts reclassified from accumulated other comprehensive net losses |
NET EARNINGS PER SHARE (EPS) (D
NET EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
NET EARNINGS PER SHARE (EPS) [Abstract] | |||
Basic | 130,310 | 129,558 | 131,075 |
Dilutive effect of stock options and other | 2,466 | 2,184 | 1,894 |
Diluted | 132,776 | 131,742 | 132,969 |
Stock options and restricted stock units excluded from calculation of diluted net EPS | 0 | 0 | 0 |
STOCK-BASED COMPENSATION PLAN77
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation plans, shares authorized to issue | 7,000,000 | ||
Common shares available for grant | 7,000,000 | ||
Stock option plan, additional shares authorized | 3,000,000 | ||
Cash received from stock options exercised | $ 230 | $ 86 | $ 121 |
Weighted-average fair value per share of options or awards granted | $ 9.65 | $ 9.69 | $ 6.96 |
Intrinsic value of options exercised | $ 140 | $ 42 | $ 45 |
Performance period for performance awards | 3 years | ||
Additional compensation expense, target cap | 150.00% | ||
Deferred stock units for nonemployee directors granted | 14,000 | ||
Deferred stock units for nonemployee directors reinvested dividends | 7,000 | ||
Deferred stock units for nonemployee directors distributed | 14,000 | ||
Deferred stock units for nonemployee directors granted weighted average fair value on grant date | $ 103.99 | ||
Deferred stock units for nonemployee directors reinvested weighted average fair value on grant date | 100.59 | ||
Deferred stock units for nonemployee directors distributed weighted average fair value on grant date | $ 62.82 | ||
Deferred stock units for nonemployee directors outstanding | 241,000 | ||
Deferred stock units for nonemployee directors outstanding weighted average fair value on grant date | $ 66.26 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 10 years | ||
Unrecognized compensation cost | $ 17 | ||
Unrecognized compensation cost, weighted-average period for recognition | 1 year | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1 | ||
Unrecognized compensation cost, weighted-average period for recognition | 1 year | ||
Weighted-average grant date fair value | $ 96 | $ 89.25 | $ 72.28 |
Nonvested awards outstanding | 18,000 | 21,000 | |
Weighted-average grant date fair value per share of nonvested awards | $ 91 | $ 81 | |
Awards vested | 8,000 | ||
Fair value of shares vested | $ 1 | $ 1 | $ 1 |
Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 16 | ||
Unrecognized compensation cost, weighted-average period for recognition | 1 year | ||
Weighted-average grant date fair value | $ 90 | $ 84.45 | $ 72.11 |
Nonvested awards outstanding | 944,000 | 1,053,000 | |
Weighted-average grant date fair value per share of nonvested awards | $ 81.92 | $ 74.68 | |
Awards vested | 357,000 | ||
Weighted-average grant date fair value per share of vested awards | $ 68.15 | ||
Fair value of shares vested | $ 24 | $ 0 | $ 14 |
Vested awards paid by the issuance of shares | 23 | ||
Vested stock awards deferred | $ 1 | ||
Minimum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years |
STOCK-BASED COMPENSATION PLAN78
STOCK-BASED COMPENSATION PLANS (Compensation Cost and Related Income Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 32 | $ 36 | $ 35 |
Related income tax benefit | 12 | 13 | 13 |
Cost of products sold [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 4 | 4 | 4 |
Selling and administrative expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 25 | 29 | 28 |
Research and development costs [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 3 | $ 3 | $ 3 |
STOCK-BASED COMPENSATION PLAN79
STOCK-BASED COMPENSATION PLANS (Assumptions Utilized in the Valuation in Calculating the Compensation Expense for Stock Options Granted) (Details) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
STOCK-BASED COMPENSATION PLANS [Abstract] | |||
Expected life, minimum | 5 years 7 months 6 days | ||
Expected life, maximum | 5 years 9 months 18 days | ||
Expected life | 5 years 8 months 12 days | 5 years 8 months 12 days | |
Weighted average expected life | 5 years 8 months 12 days | 5 years 8 months 12 days | 5 years 8 months 12 days |
Expected volatility, minimum | 16.30% | 18.40% | 18.70% |
Expected volatility, maximum | 18.60% | 18.50% | 19.20% |
Weighted-average volatility | 16.60% | 18.50% | 19.10% |
Risk-free interest rate, minimum | 1.40% | 1.80% | 0.60% |
Risk-free interest rate, maximum | 2.00% | 1.90% | 0.80% |
Weighted-average risk-free interest rate | 1.90% | 1.80% | 0.70% |
Dividend yield, minimum | 2.80% | 3.20% | |
Dividend yield, maximum | 3.40% | 3.60% | |
Dividend yield | 3.40% | ||
Weighted-average dividend yield | 3.30% | 3.40% | 3.60% |
STOCK-BASED COMPENSATION PLAN80
STOCK-BASED COMPENSATION PLANS (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Number of Shares | ||
Outstanding, beginning balance | 10,368 | |
Granted | 1,895 | |
Exercised | (3,605) | |
Cancelled | (301) | |
Outstanding, ending balance | 8,357 | 10,368 |
Options vested | 4,094 | |
Weighted-Average Exercise Price per Share | ||
Outstanding, beginning balance | $ 69 | |
Granted | 91 | |
Exercised | 64 | |
Cancelled | 82 | |
Outstanding, ending balance | 76 | $ 69 |
Options vested | $ 68 | |
Average remaining contractual life of options outstanding | 7 years | 6 years |
Average remaining contractual life of options vested | 5 years | |
Aggregate Intrinsic Value | ||
Outstanding | $ 236 | $ 232 |
Options vested | $ 148 |
STOCK-BASED COMPENSATION PLAN81
STOCK-BASED COMPENSATION PLANS (Summary of Restricted Stock Award Activity) (Details) - Restricted Stock [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Number of Shares | |||
Outstanding, beginning balance | 21 | ||
Granted | 10 | ||
Vested | (8) | ||
Forfeited | (5) | ||
Outstanding, ending balance | 18 | 21 | |
Weighted-Average Grant Date Fair Value | |||
Outstanding, beginning balance | $ 81 | ||
Granted | 96 | $ 89.25 | $ 72.28 |
Vested | 78 | ||
Forfeited | 81 | ||
Outstanding, ending balance | $ 91 | $ 81 |
STOCK-BASED COMPENSATION PLAN82
STOCK-BASED COMPENSATION PLANS (Summary of Performance Stock Award Activity) (Details) - Performance Units [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Number of Shares | |||
Outstanding, beginning balance | 1,221 | ||
Granted | 332 | ||
Distributed | (349) | ||
Forfeited | (81) | ||
Outstanding, ending balance | 1,123 | 1,221 | |
Vested and deferred | 179 | ||
Weighted-Average Grant Date Fair Value | |||
Outstanding, beginning balance | $ 73 | ||
Granted | 90 | $ 84.45 | $ 72.11 |
Distributed | 68 | ||
Forfeited | 80 | ||
Outstanding, ending balance | 79 | $ 73 | |
Vested and deferred | $ 58 |
OTHER INCOME, NET (Details)
OTHER INCOME, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
OTHER INCOME, NET [Abstract] | |||
Income from equity investees | $ (14) | $ (13) | $ (12) |
Low income housing partnership gains, net | (13) | 0 | (2) |
Interest income | (4) | (3) | (3) |
Income from transition and related services | (1) | (1) | (3) |
Foreign exchange transaction losses, net | 9 | 1 | 8 |
Amortization of trademarks and other intangible assets | 8 | 8 | 9 |
Intangible asset impairment charges | 3 | 3 | 0 |
Restructuring charges | 2 | 0 | 0 |
Insurance and other settlements | 0 | (5) | 0 |
Other | (3) | 0 | (1) |
Total | (13) | (10) | $ (4) |
Investment in low-income housing partnerships | 0 | $ 4 | |
Cash proceeds from sale of property | 15 | ||
Gain on sale of property | $ 14 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
INCOME TAXES [Abstract] | |||
Undistributed earning of certain foreign subsidiaries | $ 204 | ||
Federal income tax liability on unremitted earnings | 54 | ||
Realized and recorded excess tax benefits | $ 42 | $ 11 | $ 11 |
Open tax year | 2,011 | ||
Accrued interest and penalties related to uncertain tax positions | $ 10 | 11 | |
Interest and penalties of income tax expense (benefit) | (1) | 3 | 1 |
Potential benefits which, if recognized, would affect the effective tax rate on earnings | 27 | 58 | 56 |
Unrecognized tax benefits | |||
Gross unrecognized tax benefits recognized upon the expiration of the applicable statute of limitations | 34 | $ 1 | $ 2 |
Other Discontinued Operations [Member] | |||
Unrecognized tax benefits | |||
Gross unrecognized tax benefits recognized upon the expiration of the applicable statute of limitations | $ 32 | ||
U.S. [Member] | Earliest tax year [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards, expiration | Jun. 30, 2023 | ||
U.S. [Member] | Latest tax year [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards, expiration | Jun. 30, 2025 | ||
Subject to Expiration [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 13 | ||
Subject to Expiration [Member] | Earliest tax year [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards, expiration | Jun. 30, 2016 | ||
Subject to Expiration [Member] | Latest tax year [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards, expiration | Jun. 30, 2025 | ||
Not Subject to Expiration [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 10 | ||
Foreign Tax Credit Carryforward [Member] | U.S. [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 24 | ||
Foreign Tax Credit Carryforward [Member] | Foreign [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | $ 18 | ||
Tax credit carryforwards, expiration | Jun. 30, 2016 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes by Tax Jurisdiction and Domestic and Foreign Earnings before Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Current | |||
Federal | $ 265 | $ 247 | $ 245 |
State | 28 | 34 | 23 |
Foreign | 38 | 45 | 19 |
Total current | 331 | 326 | 287 |
Deferred | |||
Federal | (13) | (19) | (1) |
State | (1) | 2 | (2) |
Foreign | (2) | (4) | (5) |
Total deferred | (16) | (21) | (8) |
Total | 315 | 305 | 279 |
Enings from continuing operations before income taxes | |||
United States | 829 | 754 | 724 |
Foreign | 92 | 130 | 128 |
Earnings from continuing operations before income taxes | $ 921 | $ 884 | $ 852 |
INCOME TAXES (Effective Income
INCOME TAXES (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
INCOME TAXES [Abstract] | |||
Statutory federal tax rate | 35.00% | 35.00% | 35.00% |
State taxes (net of federal tax benefits) | 2.10% | 2.60% | 1.70% |
Tax differential on foreign earnings | (0.30%) | (0.30%) | (2.90%) |
Domestic manufacturing deduction | (2.10%) | (2.30%) | (2.30%) |
Change in valuation allowance | 0.60% | 0.60% | 0.70% |
Other differences | (1.10%) | (1.00%) | 0.50% |
Effective tax rate | 34.20% | 34.60% | 32.70% |
INCOME TAXES (Components of Net
INCOME TAXES (Components of Net Deferred Tax Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Deferred tax assets | |||
Compensation and benefit programs | $ 191 | $ 171 | |
Basis difference related to Venture Agreement | 30 | 30 | |
Accruals and reserves | 43 | 53 | |
Inventory costs | 19 | 20 | |
Net operating loss and tax credit carryforwards | 41 | 37 | |
Other | 61 | 63 | |
Subtotal | 385 | 374 | |
Valuation allowance | (34) | (51) | $ (36) |
Total deferred tax assets | 351 | 323 | |
Deferred tax liabilities | |||
Fixed and intangible assets | (277) | (269) | |
Low-income housing partnerships | (22) | (24) | |
Unremitted foreign earnings | (7) | (8) | |
Other | (24) | (26) | |
Total deferred tax liabilities | (330) | (327) | |
Net deferred tax assets (liabilities) | $ 21 | $ (4) |
INCOME TAXES (Valuation Allowan
INCOME TAXES (Valuation Allowance) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Valuation Allowance [Line Items] | ||
Valuation allowance at beginning of year | $ (51) | $ (36) |
Valuation allowance at end of year | (34) | (51) |
Other foreign deferred tax assets [Member] | ||
Valuation Allowance [Line Items] | ||
Change in valuation allowance | 15 | (12) |
Foreign net operating loss carryforwards and tax credits [Member] | ||
Valuation Allowance [Line Items] | ||
Change in valuation allowance | $ 2 | $ (3) |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
INCOME TAXES [Abstract] | |||
Unrecognized tax benefits at beginning of year | $ 71 | $ 69 | $ 80 |
Gross increases - tax positions in prior periods | 3 | 3 | 3 |
Gross decreases - tax positions in prior periods | (8) | (5) | (19) |
Gross increases - current period tax positions | 6 | 7 | 7 |
Gross decreases - current period tax positions | 0 | 0 | 0 |
Lapse of applicable statute of limitations | (34) | (1) | (2) |
Settlements | 0 | (2) | 0 |
Unrecognized tax benefits at end of year | $ 38 | $ 71 | $ 69 |
EMPLOYEE BENEFIT PLANS (Narrati
EMPLOYEE BENEFIT PLANS (Narrative) (Details) $ in Millions | Jul. 06, 2015USD ($) | Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) |
Defined Benefit Plan Disclosure [Line Items] | ||||
Aggregate cost of the defined contribution plans | $ 45 | $ 43 | $ 45 | |
Accumulated benefit obligation | 559 | 563 | 530 | |
Domestic Qualified Retirement Income Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discretionary contributions | 0 | 0 | 0 | |
Domestic Non-Qualified Retirement Income Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discretionary contributions | 13 | 13 | 11 | |
Domestic Non-Qualified Retirement Income Plans [Member] | Subsequent event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discretionary contributions | $ 15 | |||
Foreign Retirement Income Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discretionary contributions | 1 | 2 | 1 | |
United States Employees [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Aggregate cost of the defined contribution plans | 42 | 38 | 40 | |
International Employees [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Aggregate cost of the defined contribution plans | 3 | $ 3 | $ 1 | |
Retirement Income Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial gains (losses) as a component of net periodic benefit cost | $ (10) | |||
Retirement Health Care Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assumed ultimate trend | 4.50% | |||
Ultimate trend, year reached | 2,028 | |||
Basis point increase | item | 100 | |||
Net actuarial gains (losses) as a component of net periodic benefit cost | $ 2 | |||
Medical [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assumed ultimate trend | 7.10% | |||
Prescription Drugs [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assumed ultimate trend | 7.20% |
EMPLOYEE BENEFIT PLANS (Summari
EMPLOYEE BENEFIT PLANS (Summarized Information for Defined Benefit Retirement Income and Healthcare Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Change in plan assets: | |||
Fair value of assets as of beginning of year | $ 432 | ||
Fair value of plan assets as of end of year | 409 | $ 432 | |
Retirement Income [Member] | |||
Change in benefit obligations: | |||
Projected benefit obligation as of beginning of year | 641 | 612 | |
Service cost | 2 | 3 | $ 4 |
Interest cost | 25 | 27 | 24 |
Actuarial loss (gain) | 14 | 47 | |
Plan amendments | 0 | 0 | |
Translation and other adjustments | (5) | (6) | |
Benefits paid | (38) | (42) | |
Projected benefit obligation as of end of year | 639 | 641 | 612 |
Change in plan assets: | |||
Fair value of assets as of beginning of year | 432 | 408 | |
Actual return on plan assets | 6 | 51 | |
Employer contributions nonqualified plans | 13 | 15 | |
Benefits paid | (38) | (42) | |
Translation adjustment | (4) | 0 | |
Fair value of plan assets as of end of year | 409 | 432 | 408 |
Accrued benefit cost, net funded status | (230) | (209) | |
Amounts recognized in the balance sheet consist of: | |||
Pension benefit assets | 2 | 2 | |
Current accrued benefit liability | (16) | (14) | |
Non-current accrued benefit liability | (216) | (197) | |
Accrued benefit cost, net | (230) | (209) | |
Retirement Health Care [Member] | |||
Change in benefit obligations: | |||
Projected benefit obligation as of beginning of year | 49 | 51 | |
Service cost | 0 | 1 | 1 |
Interest cost | 2 | 2 | 2 |
Actuarial loss (gain) | 0 | (2) | |
Plan amendments | (1) | (2) | |
Translation and other adjustments | (2) | 0 | |
Benefits paid | (3) | (1) | |
Projected benefit obligation as of end of year | 45 | 49 | 51 |
Change in plan assets: | |||
Fair value of assets as of beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions nonqualified plans | 3 | 1 | |
Benefits paid | (3) | (1) | |
Translation adjustment | 0 | 0 | |
Fair value of plan assets as of end of year | 0 | 0 | $ 0 |
Accrued benefit cost, net funded status | (45) | (49) | |
Amounts recognized in the balance sheet consist of: | |||
Pension benefit assets | 0 | 0 | |
Current accrued benefit liability | (3) | (4) | |
Non-current accrued benefit liability | (42) | (45) | |
Accrued benefit cost, net | $ (45) | $ (49) |
EMPLOYEE BENEFIT PLANS (Informa
EMPLOYEE BENEFIT PLANS (Information for Retirement Income Plans with Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 559 | $ 563 | $ 530 |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 538 | 538 | |
Accumulated benefit obligation | 538 | 538 | |
Fair value of plan assets | 385 | 405 | |
Other Retirement Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 80 | 78 | |
Accumulated benefit obligation | 80 | 78 | |
Fair value of plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS (Compone
EMPLOYEE BENEFIT PLANS (Components of the Net Cost of Retirement Income and Health Care Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Retirement Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 2 | $ 3 | $ 4 |
Interest cost | 25 | 27 | 24 |
Expected return on plan assets | (20) | (25) | (29) |
Amortization of unrecognized items | 12 | 11 | 12 |
Total | 19 | 16 | 11 |
Retirement Health Care [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 1 | 1 |
Interest cost | 2 | 2 | 2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of unrecognized items | 2 | (4) | (2) |
Total | $ 4 | $ (1) | $ 1 |
EMPLOYEE BENEFIT PLANS (Items N
EMPLOYEE BENEFIT PLANS (Items Not Yet Recognized as a Component of Postretirement Expense) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Retirement Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | $ 264 | $ 247 |
Prior service benefit | 0 | |
Net deferred income tax (assets) liabilities | (98) | |
Accumulated other comprehensive loss (income) | 166 | |
Retirement Health Care [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | (17) | $ (29) |
Prior service benefit | (7) | |
Net deferred income tax (assets) liabilities | 8 | |
Accumulated other comprehensive loss (income) | $ (16) |
EMPLOYEE BENEFIT PLANS (Net Act
EMPLOYEE BENEFIT PLANS (Net Actuarial Loss (Gain) and Prior Service Cost (Benefit) Activity Recorded in Accumulated Other Comprehensive Loss (Income)) (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Retirement Income [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss (gain) as of beginning of year | $ 247 |
Amortization during the year | (12) |
Loss (gain) during the year | 29 |
Net actuarial loss (gain) as of end of year | 264 |
Retirement Health Care [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss (gain) as of beginning of year | (29) |
Amortization during the year | 13 |
Loss (gain) during the year | (1) |
Net actuarial loss (gain) as of end of year | $ (17) |
EMPLOYEE BENEFIT PLANS (Weighte
EMPLOYEE BENEFIT PLANS (Weighted-Average Assumptions Used to Estimate the Net Periodic Pension and Other Postretirement Benefit Costs) (Details) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Retirement Income [Member] | |||
Weighted-average assumptions used to estimate the actuarial present value of benefit obligations: | |||
Discount rate | 4.20% | 4.05% | |
Rate of compensation increase | 3.37% | 4.46% | |
Weighted-average assumptions used to estimate the net periodic pension and other postretirement benefit costs: | |||
Discount rate | 4.05% | 4.39% | 3.87% |
Rate of compensation increase | 4.46% | 3.44% | 3.71% |
Expected return on plan assets | 5.28% | 6.61% | 7.50% |
Retirement Health Care [Member] | |||
Weighted-average assumptions used to estimate the actuarial present value of benefit obligations: | |||
Discount rate | 4.16% | 4.00% | |
Weighted-average assumptions used to estimate the net periodic pension and other postretirement benefit costs: | |||
Discount rate | 4.00% | 4.33% | 3.86% |
EMPLOYEE BENEFIT PLANS (Expecte
EMPLOYEE BENEFIT PLANS (Expected Benefit Payments) (Details) $ in Millions | Jun. 30, 2015USD ($) |
Retirement Income [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 41 |
2,017 | 42 |
2,018 | 43 |
2,019 | 40 |
2,020 | 41 |
Fiscal years 2021 - 2025 | 210 |
Retirement Health Care [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 4 |
2,017 | 3 |
2,018 | 3 |
2,019 | 3 |
2,020 | 3 |
Fiscal years 2021 - 2025 | $ 12 |
EMPLOYEE BENEFIT PLANS (Target
EMPLOYEE BENEFIT PLANS (Target Allocations and Weighted Average Asset Allocations) (Details) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
% Target Allocation | 100.00% | 100.00% |
% of Plan Assets | 100.00% | 100.00% |
U.S. Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
% Target Allocation | 11.00% | 11.00% |
% of Plan Assets | 11.00% | 11.00% |
International Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
% Target Allocation | 12.00% | 12.00% |
% of Plan Assets | 12.00% | 12.00% |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
% Target Allocation | 74.00% | 74.00% |
% of Plan Assets | 74.00% | 74.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
% Target Allocation | 3.00% | 3.00% |
% of Plan Assets | 3.00% | 3.00% |
EMPLOYEE BENEFIT PLANS (Assets
EMPLOYEE BENEFIT PLANS (Assets Carried at Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Cash equivalents | $ 3 | $ 3 |
Common/Collective trusts | 406 | 429 |
Total assets at fair value | 409 | 432 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash equivalents | 3 | 3 |
Common/Collective trusts | 0 | 0 |
Total assets at fair value | 3 | 3 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash equivalents | 0 | 0 |
Common/Collective trusts | 406 | 429 |
Total assets at fair value | 406 | 429 |
Bond Fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 295 | 309 |
Bond Fund [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 0 | 0 |
Bond Fund [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 295 | 309 |
International Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 59 | 64 |
International Equity [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 0 | 0 |
International Equity [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 59 | 64 |
Domestic Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 41 | 44 |
Domestic Equity [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 0 | 0 |
Domestic Equity [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 41 | 44 |
Real Estate Fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 11 | 12 |
Real Estate Fund [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | 0 | 0 |
Real Estate Fund [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common/Collective trusts | $ 11 | $ 12 |
SEGMENT REPORTING (Company's Re
SEGMENT REPORTING (Company's Reportable Segments' Net Sales) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 5,655 | $ 5,514 | $ 5,533 |
Earnings (losses) from continuing operations before income taxes | 921 | 884 | 852 |
Income from equity investees | 14 | 13 | 12 |
Total assets | 4,164 | 4,258 | |
Capital expenditures | 125 | 137 | 190 |
Depreciation and amortization | 169 | 177 | 180 |
Share-based compensation | 32 | 36 | 35 |
Cleaning [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,824 | 1,776 | 1,783 |
Earnings (losses) from continuing operations before income taxes | 445 | 428 | 420 |
Income from equity investees | 0 | 0 | 0 |
Total assets | 876 | 887 | |
Capital expenditures | 35 | 37 | 57 |
Depreciation and amortization | 52 | 49 | 52 |
Share-based compensation | 8 | 11 | 10 |
Household [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,794 | 1,709 | 1,693 |
Earnings (losses) from continuing operations before income taxes | 375 | 326 | 336 |
Income from equity investees | 0 | 0 | 0 |
Total assets | 725 | 745 | |
Capital expenditures | 50 | 53 | 72 |
Depreciation and amortization | 67 | 67 | 69 |
Share-based compensation | 7 | 9 | 9 |
Lifestyle [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 950 | 936 | 929 |
Earnings (losses) from continuing operations before income taxes | 257 | 258 | 259 |
Income from equity investees | 0 | 0 | 0 |
Total assets | 860 | 869 | |
Capital expenditures | 11 | 11 | 19 |
Depreciation and amortization | 19 | 19 | 19 |
Share-based compensation | 4 | 5 | 5 |
International [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,087 | 1,093 | 1,128 |
Earnings (losses) from continuing operations before income taxes | 79 | 99 | 95 |
Income from equity investees | 14 | 13 | 12 |
Total assets | 1,057 | 1,190 | |
Capital expenditures | 25 | 31 | 24 |
Depreciation and amortization | 24 | 25 | 26 |
Share-based compensation | 1 | 1 | 1 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Earnings (losses) from continuing operations before income taxes | (235) | (227) | (258) |
Income from equity investees | 0 | 0 | 0 |
Total assets | 646 | 567 | |
Capital expenditures | 4 | 5 | 18 |
Depreciation and amortization | 7 | 17 | 14 |
Share-based compensation | $ 12 | $ 10 | $ 10 |
SEGMENT REPORTING (Net Sales an
SEGMENT REPORTING (Net Sales and Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 5,655 | $ 5,514 | $ 5,533 |
Net property, plant and equipment | 918 | 977 | |
Unites States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 4,609 | 4,466 | 4,448 |
Net property, plant and equipment | 801 | 825 | |
Foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,046 | 1,048 | $ 1,085 |
Net property, plant and equipment | $ 117 | $ 152 |
SEGMENT REPORTING (Concentratio
SEGMENT REPORTING (Concentration Percentages) (Details) - Net sales [Member] | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cleaning [Member] | Liquid Bleach [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 26.00% | 26.00% | 26.00% |
Household [Member] | Trash Bags [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 38.00% | 36.00% | 37.00% |
Household [Member] | Charcoal [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 34.00% | 34.00% | 32.00% |
International [Member] | Liquid Bleach [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 27.00% | 28.00% | 28.00% |
International [Member] | Trash Bags [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 8.00% | 8.00% | 10.00% |
Customer Concentration [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 45.00% | 45.00% | 45.00% |
Customer Concentration [Member] | Walmart Stores, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 26.00% | 27.00% | 27.00% |
Product Concentration [Member] | Liquid Bleach [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 14.00% | 13.00% | 14.00% |
Product Concentration [Member] | Trash Bags [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 14.00% | 13.00% | 13.00% |
Product Concentration [Member] | Charcoal [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 11.00% | 11.00% | 10.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
RELATED PARTY TRANSACTIONS [Abstract] | |||
Consumer products businesses percentage ownership, maximum | 50.00% | ||
Payments to related parties during the period | $ 55 | $ 57 | $ 50 |
UNAUDITED QUARTERLY DATA (Detai
UNAUDITED QUARTERLY DATA (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
UNAUDITED QUARTERLY DATA [Abstract] | |||||||||||
Net sales | $ 1,557 | $ 1,401 | $ 1,345 | $ 1,352 | $ 1,497 | $ 1,366 | $ 1,308 | $ 1,343 | $ 5,655 | $ 5,514 | |
Cost of products sold | 847 | 796 | 773 | 774 | 855 | 791 | 753 | 759 | 3,190 | 3,158 | $ 3,142 |
Earnings from continuing operations | 189 | 144 | 128 | 145 | 171 | 151 | 118 | 139 | 606 | 579 | 573 |
Earnings (losses) from discontinued operations, net of tax | 2 | 30 | (3) | (55) | (1) | (14) | (3) | (3) | (26) | (21) | (1) |
Net earnings | $ 191 | $ 174 | $ 125 | $ 90 | $ 170 | $ 137 | $ 115 | $ 136 | $ 580 | $ 558 | $ 572 |
Net earnings (losses) per share, Basic | |||||||||||
Continuing operations | $ 1.46 | $ 1.09 | $ 0.98 | $ 1.12 | $ 1.32 | $ 1.16 | $ 0.91 | $ 1.07 | $ 4.65 | $ 4.47 | $ 4.37 |
Discontinued operations | 0.02 | 0.22 | (0.02) | (0.42) | 0 | (0.11) | (0.02) | (0.03) | (0.20) | (0.16) | 0 |
Basic net earnings per share | 1.48 | 1.31 | 0.96 | 0.70 | 1.32 | 1.05 | 0.89 | 1.04 | 4.45 | 4.31 | 4.37 |
Net earnings (losses) per share, Diluted | |||||||||||
Continuing operations | 1.44 | 1.08 | 0.97 | 1.10 | 1.30 | 1.14 | 0.90 | 1.05 | 4.57 | 4.39 | 4.31 |
Discontinued operations | 0.02 | 0.22 | (0.02) | (0.42) | (0.01) | (0.10) | (0.03) | (0.02) | (0.20) | (0.16) | (0.01) |
Diluted net earnings per share | 1.46 | 1.30 | 0.95 | 0.68 | 1.29 | 1.04 | 0.87 | 1.03 | 4.37 | 4.23 | 4.30 |
Dividends declared per common share | 0.77 | 0.74 | 0.74 | 0.74 | 0.74 | 0.71 | 0.71 | 0.71 | 2.99 | 2.87 | $ 2.63 |
Market price (NYSE), high | 98.31 | 106.36 | 112.65 | 112.70 | 93.43 | 92.75 | 96.76 | 87.60 | 112.70 | 96.76 | |
Market price (NYSE), low | 86.03 | $ 95.19 | $ 102.95 | $ 103.77 | 86.56 | $ 83.70 | $ 80.20 | $ 81.25 | 86.03 | 80.20 | |
Market price (NYSE), year-end | $ 104.02 | $ 91.40 | $ 104.02 | $ 91.40 |
VALUATION AND QUALIFYING ACC105
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ (3) | $ (5) | $ (7) |
Charged to costs and expenses | (1) | 0 | 0 |
Credited to costs and expenses | 0 | 2 | 2 |
Credited to other accounts | 0 | 0 | 0 |
Balance at end of period | (4) | (3) | (5) |
LIFO Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | (36) | (40) | (37) |
Charged to costs and expenses | 0 | 0 | (3) |
Credited to costs and expenses | 0 | 3 | 0 |
Credited to other accounts | 2 | 1 | 0 |
Balance at end of period | (34) | (36) | (40) |
Valuation Allowance on Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | (51) | (36) | (20) |
Charged to costs and expenses | (4) | (25) | (16) |
Credited to costs and expenses | 0 | 0 | 0 |
Credited to other accounts | 21 | 10 | 0 |
Balance at end of period | $ (34) | $ (51) | $ (36) |