DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 30, 2017 | Jul. 28, 2017 | Dec. 30, 2016 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | $ 15.4 | ||
Entity Common Stock, Shares Outstanding | 129,068,511 |
CONSOLIDATED STATEMENT OF EARNI
CONSOLIDATED STATEMENT OF EARNINGS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 5,973 | $ 5,761 | $ 5,655 |
Cost of products sold | 3,302 | 3,163 | 3,190 |
Gross profit | 2,671 | 2,598 | 2,465 |
Selling and administrative expenses | 810 | 806 | 798 |
Advertising costs | 599 | 587 | 523 |
Research and development costs | 135 | 141 | 136 |
Interest expense | 88 | 88 | 100 |
Other (income) expense, net | 6 | (7) | (13) |
Earnings from continuing operations before income taxes | 1,033 | 983 | 921 |
Income taxes on continuing operations | 330 | 335 | 315 |
Earnings from continuing operations | 703 | 648 | 606 |
Losses from discontinued operations, net of tax | (2) | 0 | (26) |
Net earnings | $ 701 | $ 648 | $ 580 |
Basic | |||
Basic continuing operations (in dollars per share) | $ 5.45 | $ 5.01 | $ 4.65 |
Basic discontinued operations (in dollars per share) | (0.02) | 0 | (0.20) |
Basic net earnings per share (in dollars per share) | 5.43 | 5.01 | 4.45 |
Diluted | |||
Diluted continuing operations (in dollars per share) | 5.35 | 4.92 | 4.57 |
Diluted discontinued operations (in dollars per share) | (0.02) | 0 | (0.20) |
Diluted net earnings per share (in dollars per share) | $ 5.33 | $ 4.92 | $ 4.37 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||
Weighted average shares outstanding - basic (in shares) | 128,953 | 129,472 | 130,310 |
Weighted average shares outstanding - diluted (in shares) | 131,566 | 131,717 | 132,776 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Earnings from continuing operations | $ 703 | $ 648 | $ 606 |
Losses from discontinued operations, net of tax | (2) | 0 | (26) |
Net earnings | 701 | 648 | 580 |
Other comprehensive income (losses): | |||
Foreign currency adjustments, net of tax | (3) | (53) | (54) |
Net unrealized gains (losses) on derivatives, net of tax | 7 | 9 | (14) |
Pension and postretirement benefit adjustments, net of tax | 23 | (24) | (17) |
Total other comprehensive income (losses), net of tax | 27 | (68) | (85) |
Comprehensive income | $ 728 | $ 580 | $ 495 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets | ||
Cash and cash equivalents | $ 418 | $ 401 |
Receivables, net | 565 | 569 |
Inventories, net | 459 | 443 |
Prepaid expenses and other current assets | 72 | 72 |
Total current assets | 1,514 | 1,485 |
Property, plant and equipment, net | 931 | 906 |
Goodwill | 1,196 | 1,197 |
Trademarks, net | 654 | 657 |
Other intangible assets, net | 68 | 78 |
Other assets | 210 | 187 |
Total assets | 4,573 | 4,510 |
Current liabilities | ||
Notes and loans payable | 404 | 523 |
Current maturities of long-term debt | 400 | 0 |
Accounts payable and accrued liabilities | 1,005 | 1,035 |
Income taxes payable | 0 | 0 |
Total current liabilities | 1,809 | 1,558 |
Long-term debt | 1,391 | 1,789 |
Other liabilities | 770 | 784 |
Deferred income taxes | 61 | 82 |
Total liabilities | 4,031 | 4,213 |
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 as of June 30, 2017 and 2016; and 129,014,172 and 129,355,263 shares outstanding as of June 30, 2017 and 2016, respectively | 159 | 159 |
Additional paid-in capital | 928 | 868 |
Retained earnings | 2,440 | 2,163 |
Treasury shares, at cost: 29,727,289 and 29,386,198 shares as of June 30, 2017 and 2016, respectively | (2,442) | (2,323) |
Accumulated other comprehensive net (losses) income | (543) | (570) |
Stockholders’ equity | 542 | 297 |
Total liabilities and stockholders’ equity | $ 4,573 | $ 4,510 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 158,741,461 | 158,741,461 |
Common stock, shares outstanding (in shares) | 129,014,172 | 129,355,263 |
Treasury stock, shares (in shares) | 29,727,289 | 29,386,198 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Shares [Member] | AOCI Attributable to Parent [Member] |
Balance, amount at Jun. 30, 2014 | $ 154 | $ 159 | $ 709 | $ 1,739 | $ (2,036) | $ (417) |
Balance, shares (in shares) at Jun. 30, 2014 | 158,741 | (29,945) | ||||
Net earnings | 580 | 580 | ||||
Other comprehensive income (loss) | (85) | (85) | ||||
Accrued dividends | (391) | (391) | ||||
Stock-based compensation | 32 | 32 | ||||
Other employee stock plan activities, amount | 262 | 34 | (5) | $ 233 | ||
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 | 118 | $ 159 | 775 | 1,923 | $ (2,237) | (502) |
Balance, shares (in shares) at Jun. 30, 2015 | 158,741 | (30,127) | ||||
Net earnings | 648 | 648 | ||||
Other comprehensive income (loss) | (68) | (68) | ||||
Accrued dividends | (406) | (406) | ||||
Stock-based compensation | 45 | 45 | ||||
Other employee stock plan activities, amount | 214 | 48 | (2) | $ 168 | ||
Other employee stock plan activities, shares | 2,892 | |||||
Treasury stock purchased, amount | (254) | $ (254) | ||||
Treasury stock purchased, shares | (2,151) | |||||
Balance, amount at Jun. 30, 2016 | 297 | $ 159 | 868 | 2,163 | $ (2,323) | (570) |
Balance, shares (in shares) at Jun. 30, 2016 | 158,741 | (29,386) | ||||
Net earnings | 701 | 701 | ||||
Other comprehensive income (loss) | 27 | 27 | ||||
Accrued dividends | (421) | (421) | ||||
Stock-based compensation | 51 | 51 | ||||
Other employee stock plan activities, amount | 76 | 9 | (3) | $ 70 | ||
Other employee stock plan activities, shares | 1,164 | |||||
Treasury stock purchased, amount | (189) | $ (189) | ||||
Treasury stock purchased, shares | (1,505) | |||||
Balance, amount at Jun. 30, 2017 | $ 542 | $ 159 | $ 928 | $ 2,440 | $ (2,442) | $ (543) |
Balance, shares (in shares) at Jun. 30, 2017 | 158,741 | (29,727) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Operating activities: | |||
Net earnings | $ 701 | $ 648 | $ 580 |
Deduct: Losses from discontinued operations, net of tax | (2) | 0 | (26) |
Earnings from continuing operations | 703 | 648 | 606 |
Adjustments to reconcile earnings from continuing operations to net cash provided by continuing operations: | |||
Depreciation and amortization | 163 | 165 | 169 |
Stock-based compensation | 51 | 45 | 32 |
Deferred income taxes | (35) | 5 | (16) |
Settlement of interest rate forward contracts | 0 | 0 | (25) |
Other | 36 | 1 | (17) |
Changes in: | |||
Receivables, net | (1) | (52) | 6 |
Inventories, net | (19) | (45) | (25) |
Prepaid expenses and other current assets | (5) | 6 | 6 |
Accounts payable and accrued liabilities | (34) | 57 | 93 |
Income taxes payable | 12 | (62) | 29 |
Net cash provided by continuing operations | 871 | 768 | 858 |
Net cash (used for) provided by discontinued operations | (3) | 10 | 16 |
Net cash provided by operations | 868 | 778 | 874 |
Investing activities: | |||
Capital expenditures | (231) | (172) | (125) |
Business acquired, net of cash acquired | 0 | (290) | 0 |
Other | 26 | 32 | 19 |
Net cash used for investing activities | (205) | (430) | (106) |
Financing activities: | |||
Notes and loans payable, net | (125) | 426 | (48) |
Long-term debt borrowings, net of issuance costs | 0 | 0 | 495 |
Long-term debt repayments | 0 | (300) | (575) |
Treasury stock purchased | (183) | (254) | (434) |
Cash dividends paid | (412) | (398) | (385) |
Issuance of common stock for employee stock plans and other | 75 | 210 | 251 |
Net cash used for financing activities | (645) | (316) | (696) |
Effect of exchange rate changes on cash and cash equivalents | (1) | (13) | (19) |
Net increase in cash and cash equivalents | 17 | 19 | 53 |
Cash and cash equivalents: | |||
Beginning of year | 401 | 382 | 329 |
End of year | 418 | 401 | 382 |
Supplemental cash flow information: | |||
Interest paid | 78 | 79 | 104 |
Income taxes paid, net of refunds | 347 | 323 | 236 |
Noncash financing activities: | |||
Cash dividends declared and accrued, but not paid | $ 108 | $ 104 | $ 99 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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 and grocery outlets, warehouse clubs, dollar stores, e-commerce channels, military stores and other retail outlets, 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 presents 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, retirement income plans, 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 interest bearing accounts, time deposits held by financial institutions 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 income 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) expense, net. As of June 30, 2017 and 2016 , the Company had $2 and $4 of restricted cash, respectively, which is primarily related to fiscal year 2012 acquisitions and a cash margin deposit held for exchange-traded futures contracts. Restricted cash was included in Prepaid expenses and other current assets as of June 30, 2017 and in Other assets as of June 30, 2016 . Inventories Inventories are stated at the lower of cost or market. When necessary, the Company adjusts 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 7 - 40 years Land improvements 10 - 30 years Machinery and equipment 3 - 15 years Computer equipment 3 - 5 years Capitalized software costs 3 - 7 years 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 carrying 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 carrying 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 estimated 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 carrying 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 volumes, net sales and expense growth rates, changes in working capital, foreign exchange rates, 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. When a quantitative test is performed, the estimated fair value of an asset is compared 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, restricted stock 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 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 number of shares issued is dependent upon the achievement of specified performance targets. The performance period is three years and the payout determination is made at the end of the three -year performance period. Performance unit grants receive dividends earned during the vesting period upon vesting. 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 estimated forfeiture rates and management's assessment of the probability that performance goals will be achieved. A cumulative adjustment is recognized to compensation expense in the current period to reflect any changes in the probability of achievement of performance goals. 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 operating cash inflows. Employee Benefits The Company accounts for its retirement income and retirement health care plans using actuarial methods . These methods use an attribution approach that generally spreads “plan events” over the service lives or expected lifetime (for frozen plans) of plan participants. Examples of plan events are plan amendments and changes in actuarial assumptions such as the expected return on plan assets, discount rate, rate of compensation increase and certain employee-related factors, such as retirement age and mortality. The principle underlying the attribution approach is that employees render service over their employment period on a relatively “smooth” basis and, therefore, the statement of earnings effects of retirement income and retirement health care plans are recognized in the same pattern. One of the principal assumptions used in the net periodic benefit cost calculation is the expected return on plan assets. The required use of an expected return on plan assets may result in recognized expense or income that differs from the actual returns of those plan assets in any given year. Over time, however, the goal is for the expected long-term returns to approximate the actual returns and, therefore, the expectation is that the pattern of income and expense recognition should closely match the pattern of the services provided by the participants. The Company uses a market-related value method for calculating plan assets for purposes of determining the amortization of actuarial gains and losses. The differences between actual and expected returns are recognized in the net periodic benefit cost calculation over the average remaining service period or expected lifetime (for frozen plans) of the plan participants using the corridor approach. Under this approach, only actuarial gains (losses) that exceed 5% of the greater of the projected benefit obligation or the market-related value of assets are amortized to the Company's net periodic benefit cost. In developing its expected return on plan assets, the Company considers the long-term actual returns relative to the mix of investments that comprise its plan assets and also develops estimates of future investment returns by considering external sources. 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 becomes 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 Accounts payable and accrued liabilities and 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 trade promotions, coupons, returns 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. 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 $3 and $5 as of June 30, 2017 and 2016 , respectively. Receivables, net, included non-customer receivables of $3 and $9 as of June 30, 2017 and 2016 , respectively. 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 manufacturing 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 other charges 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, 2017 , 2016 and 2015 were $13 , $11 and $11 , respectively, all of which were reflected in Cost of products sold or discontinued operations, as appropriate, in the consolidated statements of earnings. 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 basis. 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 income 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) expense, 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) expense, 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 (loss). 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 equity investees for which earnings are not considered indefinitely reinvested is recorded as a component of deferred taxes with an offset to Other comprehensive income (loss). 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 (loss) 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, 2017 , 2016 and 2015 , 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 (loss) 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 the consolidated statement of earnings in the current period. Cash flows from hedging activities are classified as operating activities in the consolidated statements of cash flows. Recently Issued Accounting Standards Recently Issued Accounting Standards not yet adopted In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires presenting the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period. This standard also requires that other components of the net periodic benefit cost be presented separately from the line item(s) that includes service costs and outside of any subtotal of operating income, if one is presented, on a retrospective basis. Additionally, the new guidance limits the components that are eligible for capitalization in assets to only the service cost component. 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 this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation will depend on the classification of a lease as either a finance or an operating lease. ASU 2016-02 also requires expanded disclosures about leasing arrangements. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance 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 of the existing U.S. GAAP revenue recognition guidance and is intended to improve and converge with international standards on 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 guidance is effective for the Company beginning in the first quarter of fiscal year 2019 and is expected to be applied on a modified retrospective basis. Based on the Company’s preliminary assessment, the adoption of the standard is not expected to have a significant impact on its annual consolidated financial statements; however, there may be an impact on the Company’s financial results in interim periods due to the timing of recognition for certain trade promotion spending. As the Company completes its overall assessment, it is also identifying potential changes to its accounting policies, business processes, systems and controls to align with the new revenue recognition guidance and disclosure requirements. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions, including requiring excess tax benefits and tax deficiencies to be recognized as income tax benefits or expenses in the consolidated statement of earnings. Additionally, the standard requires cash flows from excess tax benefits and deficiencies, previously classified as a financing activity, to be classified as an operating activity in the consolidated statement of cash flows. The Company adopted this guidance in the first quarter of fiscal year 2017. Excess tax benefits of $22 were recognized in the consolidated statement of earnings and classified as an operating activity in the consolidated statement of cash flows during the year ended June 30, 2017. The prior period consolidated statement of cash flows has not been adjusted as permitted. The guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. The Company did not make this election and will continue to account for forfeitures on an estimated basis. In April 2015, the FASB issued 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 Company adopted this standard in the first quarter of fiscal year 2017 and retrospectively applied the standard to the June 30, 2016 consolidated balance sheet, resulting in an $8 reduction in Other assets and Long-term debt. The adoption had no impact on the Company’s consolidated statement of earnings or consolidated statement of cash flows. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 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 Nicolás Maduro, that the Venezuelan government had occupied the Santa Lucía and Guacara production facilities of Clorox Venezuela. On November 6, 2014, the Company reported that the Venezuelan government had published a resolution granting a government-sponsored Special Administrative Board full authority to restart and operate the business of Clorox Venezuela, thereby reaffirming the government's expropriation of Clorox Venezuela’s assets. Further, President Nicolás Maduro announced the government's intention to facilitate the resumed production of bleach and other cleaning products at Clorox Venezuela plants. He also announced his approval of a financial credit to invest in raw materials and production at the plants. These actions by the Venezuelan government were taken without the consent or involvement of Clorox Venezuela, its parent Clorox Spain S.L. (Clorox Spain) or any of their affiliates. Clorox Venezuela, Clorox Spain and their affiliates reserved their rights under all applicable laws and treaties. 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 $0 , $0 and $11 for the fiscal years ended June 30, 2017 , 2016 and 2015 , respectively. The following table provides a summary of Earnings (losses) from discontinued operations for Clorox Venezuela and Earnings (losses) from discontinued operations other than Clorox Venezuela for the years ended June 30: 2017 2016 2015 Operating losses from Clorox Venezuela before income taxes $ — $ — $ (6 ) Exit costs and other related expenses for Clorox Venezuela (4 ) (2 ) (78 ) Total earnings (losses) from Clorox Venezuela before income taxes (4 ) (2 ) (84 ) Income tax benefit attributable to Clorox Venezuela 2 2 29 Total earnings (losses) from Clorox Venezuela, net of tax (2 ) — (55 ) Gains (losses) from discontinued operations other than Clorox Venezuela, net of tax — — 29 Losses from discontinued operations, net of tax $ (2 ) $ — $ (26 ) Unrelated to Clorox Venezuela, in the fiscal year ended June 30, 2015, $32 of gross unrecognized tax benefits relating to other discontinued operations for periods prior to fiscal year 2015 were recognized upon the expiration of the applicable statute of limitations. Recognition of these previously disclosed tax benefits had no impact on the Company’s cash flow or earnings from continuing operations for the fiscal year ended June 30, 2015. 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 years ended June 30: 2017 2016 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 (4 ) (2 ) (10 ) Total losses from Clorox Venezuela before income taxes (4 ) (2 ) (84 ) Income tax benefit attributable to Clorox Venezuela 2 2 29 Total losses from Clorox Venezuela, net of tax (2 ) — (55 ) Gains from discontinued operations other than Clorox Venezuela, net of tax — — 29 Losses from discontinued operations, net of tax $ (2 ) $ — $ (26 ) Financial Reporting: Hyperinflation and the Selection of Exchange Rates 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 to discontinued operations in September 2014 represents the recognition of these losses as a result of Clorox Venezuela discontinuing its operations effective September 22, 2014. 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 as of both June 30, 2017 and 2016 . As of June 30, 2017 and 2016 , the local books of Clorox Venezuela carried a net asset position of $0 . In addition, as of both June 30, 2017 and 2016 , the Company held $0 of tax asset balances related to Clorox Venezuela in Corporate in the reconciliation of the results of the Company’s reportable segments to consolidated results. |
BUSINESSES ACQUIRED
BUSINESSES ACQUIRED | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
BUSINESSES ACQUIRED | BUSINESSES ACQUIRED On May 2, 2016 , the Company acquired 100 percent of ReNew Life Holdings Corporation (RenewLife), a leading brand in digestive health. The amount paid was $290 funded through commercial paper. The amount paid of $290 represents the aggregate purchase price less cash acquired. The purchase of the RenewLife business reflects the Company’s strategy to acquire leading brands with attractive margins in growth categories. Results for RenewLife’s U.S. business are reflected in the Household reportable segment and results for RenewLife’s international business are reflected in the International reportable segment. Included in the Company's results for fiscal year 2017 and 2016 was $130 and $21 , respectively, of RenewLife's global net sales. The assets and liabilities of RenewLife were recorded at their respective estimated fair value as of the date of the acquisition using U.S. GAAP for business combinations. The excess of the purchase price over the fair value of the net identifiable assets acquired was allocated to goodwill. The recorded goodwill primarily reflects the value of expanding the Company’s portfolio further into the health and wellness arena. The following table summarizes the final purchase price allocation for the fair value of RenewLife’s assets acquired and liabilities assumed and related deferred income taxes. The fair value of the assets acquired and liabilities assumed reflects the final insignificant measurement period adjustments related to deferred income taxes and income taxes payable. The weighted-average estimated useful life of intangible assets subject to amortization is 15 years . RenewLife Goodwill $ 137 Trademarks 134 Customer relationships 36 Property, plant and equipment 3 Working capital, net 40 Deferred income taxes (60 ) Purchase Price $ 290 Pro forma results reflecting the acquisition were not presented because the acquisition did not meet the threshold requirements for additional disclosure. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following as of June 30: 2017 2016 Finished goods $ 363 $ 361 Raw materials and packaging 119 111 Work in process 3 3 LIFO allowances (26 ) (32 ) Total $ 459 $ 443 The last-in, first-out (LIFO) method was used to value approximately 37% and 38% of inventories as of June 30, 2017 and 2016 , respectively. The carrying values for all other inventories are determined on the first-in, first-out (FIFO) method. The effect on earnings of the liquidation of LIFO layers was insignificant for each of the fiscal years ended June 30, 2017 , 2016 and 2015 . |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET The components of property, plant and equipment, net, consisted of the following as of June 30: 2017 2016 Machinery and equipment $ 1,696 $ 1,607 Buildings 524 524 Capitalized software costs 371 368 Land and improvements 116 118 Construction in progress 130 112 Computer equipment 95 88 Total 2,932 2,817 Less: Accumulated depreciation and amortization (2,001 ) (1,911 ) Property, plant and equipment, net $ 931 $ 906 Included in Machinery and equipment above are $13 and $12 of capital leases as of June 30, 2017 and 2016 , respectively. Accumulated depreciation for assets under capital leases was $8 and $3 as of June 30, 2017 and 2016 , respectively. Included in Land and improvements above are $3 and $3 of asset retirement obligations as of June 30, 2017 and 2016 , respectively, for two leased properties. The liability of $0 and $1 incurred in fiscal year 2017 and 2016 , respectively, was recorded in Other liabilities. Depreciation and amortization expense related to property, plant and equipment, net, was $153 , $157 and $157 in fiscal years 2017 , 2016 and 2015 , respectively, which includes depreciation of assets under capital leases. This also includes amortization of capitalized software of $15 , $16 and $19 in fiscal years 2017 , 2016 and 2015 , respectively. During the second quarter of fiscal year 2017, the Company recognized a $21 non-cash charge related to impairing certain assets of the Company's Aplicare business within the Cleaning reportable segment. The asset impairment charge primarily related to writing down Property, plant and equipment to fair value in connection with an updated valuation of the Aplicare business. Refer to Note 11 for further details. Non-cash capital expenditures were $2 , $10 and $18 in fiscal years 2017 , 2016 and 2015 , respectively. |
GOODWILL, TRADEMARKS AND OTHER
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2017 | |
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS | GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill by reportable segment for the fiscal years ended June 30, 2017 and 2016 were as follows: Goodwill Cleaning Household Lifestyle International Total Balance June 30, 2015 $ 323 $ 85 $ 244 $ 415 $ 1,067 Acquisition — 122 — 15 137 Effect of foreign currency translation — — — (7 ) (7 ) Balance June 30, 2016 323 207 244 423 1,197 Effect of foreign currency translation — — — (1 ) (1 ) Balance June 30, 2017 $ 323 $ 207 $ 244 $ 422 $ 1,196 The changes in the carrying amount of trademarks and other intangible assets for the fiscal years ended June 30 were as follows: As of June 30, 2017 As of June 30, 2016 Gross Accumulated Net carrying Gross Accumulated Net carrying Trademarks not subject to amortization $ 645 $ — $ 645 $ 647 $ — $ 647 Trademarks subject to amortization 32 23 9 32 22 10 Other intangible assets 358 290 68 358 280 78 Total $ 1,035 $ 313 $ 722 $ 1,037 $ 302 $ 735 Finite-lived intangible assets are amortized over their estimated useful lives, which range from 2 to 30 years. Amortization expense relating to the Company’s intangible assets was $10 , $8 and $12 for the years ended June 30, 2017 , 2016 and 2015 , respectively. Estimated amortization expense for these intangible assets is $9 , $9 , $9 , $8 and $7 for fiscal years 2018 , 2019 , 2020 , 2021 and 2022 , respectively. During fiscal year 2016, the Company recognized $9 of intangible asset impairment charges, of which $6 related to the Aplicare ® trademark within the Cleaning reportable segment. The Aplicare ® trademark impairment was recognized based on the anticipated impact on future results from a competitive market entrant. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Jun. 30, 2017 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consisted of the following as of June 30: 2017 2016 Accounts payable $ 501 $ 490 Compensation and employee benefit costs 162 192 Trade and sales promotion 117 127 Dividends 116 108 Other 109 118 Total $ 1,005 $ 1,035 |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Notes and loans payable, which mature in less than one year, included the following as of June 30: 2017 2016 Commercial paper $ 403 $ 522 Foreign borrowings 1 1 Total $ 404 $ 523 The weighted average interest rates incurred on average outstanding notes and loans payable during the fiscal years ended June 30, 2017 , 2016 and 2015 , including fees associated with the Company’s undrawn revolving credit facility, were 1.21% , 1.10% and 2.05% , respectively. The weighted average effective interest rates on commercial paper balances as of June 30, 2017 and 2016 were 1.33% and 0.82% , respectively. Long-term debt, carried at face value net of unamortized discounts, premiums and debt issuance costs, included the following as of June 30: 2017 2016 Senior unsecured notes and debentures: 5.95%, $400 due October 2017 $ 400 $ 400 3.80%, $300 due November 2021 298 297 3.05%, $600 due September 2022 596 596 3.50%, $500 due December 2024 497 496 Total 1,791 1,789 Less: Current maturities of long-term debt (400 ) — Long-term debt (1) $ 1,391 $ 1,789 (1) Prior year amounts have been retrospectively adjusted to conform to the current year presentation of debt issuance costs required by ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." See Note 1 for details. The weighted average interest rates incurred on average outstanding long-term debt during the fiscal years ended June 30, 2017 , 2016 and 2015 , were 4.41% , 4.37% and 4.44% , respectively. The weighted average effective interest rates on long-term debt balances as of June 30, 2017 and 2016 was 4.41% . Long-term debt maturities as of June 30, 2017 , are $400 , $0 , $0 , $0 , $300 and $1,100 in fiscal years 2018 , 2019 , 2020 , 2021 , 2022 and thereafter, respectively. In October 2017, $400 of the Company's senior notes with an annual fixed interest rate of 5.95% , are due for repayment. In November 2015, $300 of the Company’s senior notes with an annual fixed interest rate of 3.55% became due and were repaid using commercial paper borrowings and cash on hand. In January 2015, $575 of the Company’s senior notes with an annual fixed interest rate of 5.00% became due and were repaid using the net proceeds from the December 2014 debt issuance and commercial paper borrowings. In December 2014, the Company issued $500 of senior notes with an annual fixed interest rate of 3.50% . The notes carry an effective interest rate of 4.10% , which includes the impact from the settlement of interest rate forward contracts in December 2014 (see Notes 10). The notes rank equally with all of the Company’s existing senior indebtedness. The Company’s borrowing capacity under other financing arrangements as of June 30 was as follows: 2017 2016 Revolving credit facility $ 1,100 $ 1,100 Foreign and other credit lines 29 28 Total $ 1,129 $ 1,128 On February 8, 2017, the Company entered into a new $1,100 revolving credit agreement (the Credit Agreement) that matures in February 2022. The Credit Agreement replaced a prior $1,100 revolving credit agreement in place since October 2014. No termination fees or penalties were incurred in connection with the Company's debt modification. There were no borrowings under the Credit Agreement as of June 30, 2017 and 2016 and the Company believes that borrowings under the Credit Agreement are and will continue to be available for general business purposes. The Credit Agreement includes certain restrictive covenants and limitations, with which the Company was in compliance as of June 30, 2017. Of the $29 of foreign and other credit lines as of June 30, 2017 , $5 was outstanding and the remainder of $24 was available for borrowing. Of the $28 of foreign and other credit lines as of June 30, 2016 , $5 was outstanding and the remainder of $23 was available for borrowing. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Jun. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES Other liabilities consisted of the following as of June 30: 2017 2016 Venture agreement terminal obligation, net $ 317 $ 302 Employee benefit obligations 298 335 Taxes 42 40 Other 113 107 Total $ 770 $ 784 Venture Agreement The Company has an agreement with The Procter & Gamble Company (P&G) for the Company’s Glad ® bags, wraps and containers business. As of June 30, 2017 and 2016 , P&G had a 20% interest in the venture. The Company pays a royalty to P&G for its interest in the profits, losses and cash flows, as contractually defined, of the Glad ® business, which is included in Cost of products sold. The agreement with P&G will expire in January 2023 unless the parties agree, on or prior to January 2018, to extend the term of the agreement for another 10 years or agree to take some other relevant action. The agreement can be terminated under certain circumstances, including at P&G’s option upon a change in control of the Company or, at either party’s option, upon the sale of the Glad ® business by the Company. Upon termination of the agreement, the Company is required to purchase P&G’s interest for cash at fair value as established by predetermined valuation procedures. As of June 30, 2017 , the estimated fair value of P&G’s interest was $458 , of which $ 317 has been recognized and is reflected in Other liabilities as noted in the table above. The difference between the estimated fair value and the amount recognized, and any future changes in the fair value of P&G’s interest, is charged to Cost of products sold in accordance with the effective interest method over the remaining life of the agreement. Following termination, the Glad ® business will retain the exclusive core intellectual property licenses contributed by P&G on a royalty-free basis for the licensed products marketed. 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, California to an unrelated third party for net proceeds of $108 and entered into a 15 -year operating lease agreement with renewal options with the buyer for a portion of the building. The Company deferred recognition of the portion of the total gain on the sale that was equivalent to the present value of the lease payments and will continue to amortize such amount to earnings ratably over the lease term. As of June 30, 2017 and 2016 , the long-term portion of the deferred gain of $33 and $36 , respectively, was included in Other as noted in the table above. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2017 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Financial Risk Management and Derivative Instruments The Company is exposed to certain commodity, foreign currency and interest rate risks related to its ongoing business operations and uses derivative instruments to mitigate its exposure to these risks. Commodity Price Risk Management The Company may use commodity exchange traded futures and over-the-counter swap contracts, which are generally no longer than 2 years , to fix the price of a portion of its forecasted raw material requirements. Commodity purchase contracts are measured at fair value using market quotations obtained from commodity derivative dealers. As of June 30, 2017 , the notional amount of commodity derivatives was $26 , of which $14 related to jet fuel swaps used for the charcoal business and $12 related to soybean oil futures used for the food business. As of June 30, 2016 , the notional amount of commodity derivatives was $30 , of which $16 related to jet fuel swaps and $14 related to soybean oil futures. Foreign Currency Risk Management The Company may also enter into certain over-the-counter derivative contracts to manage a portion of the Company’s forecasted foreign currency exposure associated with the purchase of inventory. These foreign currency contracts generally have durations of no longer than 2 years . The foreign exchange contracts are measured at fair value using information quoted by foreign exchange dealers. The notional amounts of outstanding foreign currency forward contracts used by the Company’s subsidiaries to hedge forecasted purchases of inventory were $49 and $84 , respectively, as of June 30, 2017 and 2016 . 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 or to manage the Company’s level of fixed and floating rate debt. The interest rate contracts are measured at fair value using information quoted by U.S. government bond dealers. During fiscal year 2015, the Company paid $25 to settle interest rate forward contracts related to the December 2014 issuance of $500 in senior notes. The settlement payments are reflected as operating cash flows in the consolidated statements of cash flows for the fiscal year ended June 30, 2015. The loss is reflected in Accumulated other comprehensive net loss on the consolidated balance sheets as of June 30, 2017 and 2016, and is being amortized into Interest expense on the consolidated statement of earnings over the 10 -year term of the notes. The Company had no outstanding interest rate forward contracts as of June 30, 2017 and 2016 . Commodity, Interest Rate and Foreign Exchange 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 income (loss) and Net earnings were as follows during the fiscal years ended June 30: Gains (losses) 2017 2016 2015 Commodity purchase derivative contracts $ (3 ) $ (4 ) $ (13 ) Foreign exchange derivative contracts (1 ) (3 ) 7 Interest rate derivative contracts — — (12 ) Total $ (4 ) $ (7 ) $ (18 ) Gains (losses) reclassified from Accumulated 2017 2016 2015 Commodity purchase derivative contracts $ (2 ) $ (13 ) $ (5 ) Foreign exchange derivative contracts (3 ) 1 3 Interest rate derivative contracts (6 ) (6 ) (5 ) Total $ (11 ) $ (18 ) $ (7 ) The gains (losses) reclassified from Accumulated other comprehensive net losses and recognized in Net earnings during the fiscal years ended June 30, 2017 , 2016 and 2015 , for commodity purchase and foreign exchange derivative contracts were included in Cost of products sold, and for interest rate derivative contracts were included in Interest expense. The estimated amount of the existing net gain (loss) in Accumulated other comprehensive losses as of June 30, 2017 , which is expected to be reclassified into Net earnings within the next twelve months, is $(8) . Gains and losses on derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in Net earnings. During each of the fiscal years ended June 30, 2017 , 2016 and 2015 , hedge ineffectiveness was not significant. Counterparty Risk Management and Derivative Contract Requirements The Company utilizes a variety of financial institutions as counterparties for over-the counter derivative instruments. The Company enters into agreements governing the use of over-the-counter derivative instruments and sets internal limits on the aggregate over-the-counter derivative instrument positions held with each counterparty. Certain terms of these agreements require the Company or the counterparty to post collateral when the fair value of the derivative instruments exceeds contractually defined counterparty liability position limits. Of the over-the-counter derivative instruments held as of June 30, 2017 and June 30, 2016 $1 and $4 , respectively, contained such terms. As of both June 30, 2017 and 2016 , neither the Company nor any counterparty was required to post any collateral as no counterparty liability position limits were exceeded. Certain terms of the agreements governing the Company’s over-the-counter derivative instruments require the credit ratings, as assigned by Standard & Poor’s and Moody’s to the Company and its counterparties, to remain at a level equal to or better than the minimum of an investment grade credit rating. If the Company’s credit ratings were to fall below investment grade, the counterparties to the derivative instruments could request full collateralization on derivative instruments in net liability positions. As of both June 30, 2017 and 2016 , 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, 2017 and 2016 , the Company maintained cash margin balances related to exchange-traded futures contracts of $1 and $1 , respectively, which are classified as Prepaid expenses and other current assets on the consolidated balance sheets. Trust Assets The Company has held interests in mutual funds and cash equivalents as part of trust assets related to its nonqualified deferred compensation plans. The participants in the nonqualified deferred compensation plans, who are the Company’s current and former employees, may select among certain mutual funds in which their compensation deferrals are invested in accordance with the terms of the plan and within the confines of the trusts, which hold the marketable securities. The trusts represent variable interest entities for which the Company is considered the primary beneficiary, and therefore, trust assets are consolidated and included in Other assets in the 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. As of June 30, 2017, the value of the trust assets related to the Company’s nonqualified deferred compensation plans increased by $ 20 as compared to June 30, 2016, primarily due to current year employees’ contributions to these plans. Fair Value of Financial Instruments 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, 2017 and 2016 , the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the period included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. The following table summarizes the fair value of Company’s assets and liabilities for which disclosure of fair value is required as of June 30: 2017 2016 Assets Balance sheet classification Fair value Carrying Estimated Carrying Estimated Investments including money market funds Cash and cash equivalents (a) 1 $ 221 $ 221 $ 234 $ 234 Time deposits Cash and cash equivalents (a) 2 115 115 79 79 Commodity purchase futures contracts Prepaid expenses and other current assets 1 — — 1 1 Commodity purchase swaps contracts Prepaid expenses and other current assets 2 1 1 — — Foreign exchange forward contracts Prepaid expenses and other current assets 2 — — 1 1 Commodity purchase swaps contracts Other assets 2 — — 1 1 Trust assets for nonqualified deferred compensation plans Other assets 1 72 72 52 52 $ 409 $ 409 $ 368 $ 368 Liabilities Notes and loans payable Notes and loans payable (b) 2 $ 404 $ 404 $ 523 $ 523 Commodity purchase swaps contracts Accounts payable and accrued liabilities 2 1 1 1 1 Foreign exchange forward contracts Accounts payable and accrued liabilities 2 1 1 4 4 Current maturities of long-term debt and Long-term debt Current maturities of long- (c) 2 1,791 1,855 1,789 1,922 $ 2,197 $ 2,261 $ 2,317 $ 2,450 (a) Cash and cash equivalents are composed of time deposits and other interest bearing investments including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value. (b) Notes and loan payable 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) Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of Long-term debt, including current maturities, was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2 . |
OTHER CONTINGENCIES AND GUARANT
OTHER CONTINGENCIES AND GUARANTEES | 12 Months Ended |
Jun. 30, 2017 | |
OTHER CONTINGENCIES AND GUARANTEES [Abstract] | |
OTHER CONTINGENCIES AND GUARANTEES | OTHER CONTINGENCIES AND GUARANTEES Contingencies The Company is involved in certain environmental matters, including response actions at various locations. The Company had recorded liabilities totaling $28 and $14 as of June 30, 2017 and June 30, 2016 , respectively, for its share of aggregate future remediation costs related to these matters. One matter, which accounted for $14 and less than $1 of the recorded liability as of June 30, 2017 and June 30, 2016 , respectively, relates to environmental costs associated with one of the Company’s former operations at a site located in Alameda County, California. In November 2016, at the request of regulators and with the assistance of environmental consultants, the Company submitted a Feasibility Study that evaluated various options for managing the site and included estimates of the related costs. As a result, the Company recorded in Other (income) expense, net an undiscounted liability for costs estimated to be incurred over a 30 -year period, based on the option recommended in the Feasibility Study. However, as a result of ongoing discussions with regulators, in June 2017 the Company increased its recorded liability to $14 , which reflects anticipated costs to implement additional remediation measures at the site. While the Company believes its latest estimate is reasonable, regulators could require the Company to implement one of the other options evaluated in the Feasibility Study, with estimated undiscounted costs of up to $28 over an estimated 30 -year period, or require the Company to take other actions and incur costs not included in the study. Another matter in Dickinson County, Michigan, at the site of one of the Company's former operations for which the Company is jointly and severally liable, accounted for $12 and $11 of the recorded liability as of June 30, 2017 and June 30, 2016 , respectively. This amount reflects the Company's agreement to be liable for 24.3% of the aggregate remediation and associated costs for this matter pursuant to a cost-sharing arrangement with a third party. With the assistance of environmental consultants, the Company maintains an undiscounted liability representing its current best estimate of its share of the capital expenditures, maintenance and other costs that may be incurred over an estimated 30 -year remediation period. Although it is reasonably possible that the Company’s exposure may exceed the amount recorded for the Dickinson County matter, any amount of such additional exposures, or range of exposures, is not estimable at this time. The Company’s estimated losses related to these matters are sensitive to a variety of uncertain factors, including the efficacy of any remediation efforts, changes in any remediation requirements, and the future availability of alternative clean-up technologies. The Company is subject to various legal proceedings, claims and other loss contingencies, including, without limitation, loss contingencies relating to contractual arrangements, product liability, patents and trademarks, advertising, labor and employment, environmental, health and safety and other matters. With respect to these proceedings, claims and other loss contingencies, while considerable uncertainty exists, in the opinion of management at this time, the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, either individually or in the aggregate, on the Company’s consolidated financial statements taken as a whole. Guarantees In conjunction with divestitures and other transactions, the Company may provide typical indemnifications (e.g., indemnifications for representations and warranties and retention of previously existing environmental, tax and employee liabilities) that have terms that vary in duration and in the potential amount of the total obligation and, in many circumstances, are not explicitly defined. The Company has not made, nor does it believe that it is probable that it will make, any material payments relating to its indemnifications, and believes that any reasonably possible payments would not have a material adverse effect, either individually or in the aggregate, on the Company’s consolidated financial statements taken as a whole. The Company had not recorded any liabilities on the aforementioned guarantees as of June 30, 2017 and 2016. The Company was a party to letters of credit of $10 as of both June 30, 2017 and 2016, primarily related to one of its insurance carriers, of which $0 had been drawn upon. Other Matters During the second quarter of fiscal year 2017, the Company recognized a $21 non-cash charge related to impairing certain assets of the Company’s Aplicare business within the Cleaning reportable segment. The asset impairment charge was recorded to Other (income) expense, net, and primarily related to writing down Property, plant and equipment to fair value in connection with an updated valuation of the Aplicare business. Such updated valuation took into account proposed actions that the Company planned to take in response to a December 2016 FDA warning letter that focused on the validation of Aplicare's sterilization process as well as quality controls and environmental monitoring for Aplicare's povidone-iodine products. The Aplicare business, which represents slightly less than 1% of the Company’s net sales, is a business primarily focused on providing skin antisepsis products to health care institutions. While the Company continues to believe in the value of the processes that Aplicare has used for the past 30 years, the Company may have additional future charges as it continues to address the warning letter and explores a range of various strategic alternatives for the Aplicare business, including a sale of the business. For the fiscal year ended June 30, 2017 , the Aplicare business had net sales of $46 and insignificant net earnings excluding the $21 non-cash impairment charge recorded in the second quarter of fiscal year 2017. As of June 30, 2017, the Aplicare business had net assets of $15 . |
LEASES AND OTHER COMMITMENTS
LEASES AND OTHER COMMITMENTS | 12 Months Ended |
Jun. 30, 2017 | |
LEASES AND OTHER COMMITMENTS [Abstract] | |
LEASES AND OTHER COMMITMENTS | LEASES AND OTHER COMMITMENTS The Company leases various property, plant, and equipment including office, warehousing, manufacturing and research and development facilities, in addition to certain manufacturing and information technology equipment. 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 $84 , $77 and $76 in fiscal years 2017 , 2016 and 2015 , respectively. The future minimum annual lease payments required under the Company’s existing non-cancelable operating and capital lease agreements as of June 30, 2017 , were as follows: Year Operating Capital 2018 $ 52 $ 2 2019 46 1 2020 41 — 2021 37 — 2022 32 — Thereafter 137 — Total $ 345 $ 3 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 based on expectations of future business needs. For purchase obligations subject to variable price and/or quantity provisions, an estimate of the price and/or quantity has been made. Many of these purchase obligations are short term in nature and are flexible to allow for changes in the Company’s business and related requirements. As of June 30, 2017 , the Company’s purchase obligations were as follows: Year Purchase 2018 $ 158 2019 70 2020 36 2021 20 2022 13 Thereafter 21 Total $ 318 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY The Company has two share repurchase programs: an open-market purchase program with an authorized aggregate purchase amount of up to $750 , all of which was available for share repurchases as of both June 30, 2017 and 2016 , and a program to offset the anticipated impact of share dilution related to share-based awards (the Evergreen Program), which has no authorization limit as to amount or timing of repurchases. There were no share repurchases under the open-market purchase program during the fiscal years ended June 30, 2017, 2016 and 2015. Share repurchases under the Evergreen Program were as follows during the fiscal years ended June 30: 2017 2016 2015 Amount Shares Amount Shares Amount Shares Evergreen Program $ 189 1,505 $ 254 2,151 $ 434 4,016 Dividends per share declared and paid, respectively, during the fiscal years ended June 30 were as follows: 2017 2016 2015 Dividends per share declared $ 3.24 $ 3.11 $ 2.99 Dividends per share paid 3.20 3.08 2.96 Accumulated Other Comprehensive Net (Losses) Income Changes in Accumulated other comprehensive net (losses) income by component were as follows for the fiscal years ended June 30: Foreign currency Net Pension and Accumulated Balance June 30, 2014 $ (246 ) $ (39 ) $ (132 ) $ (417 ) Other comprehensive income (loss) before reclassifications (92 ) (18 ) (29 ) (139 ) Amounts reclassified from Accumulated other comprehensive net losses — 7 — 7 Recognition of deferred foreign currency translation loss 30 — — 30 Income tax benefit (expense) 8 (3 ) 12 17 Net current period other comprehensive income (loss) (54 ) (14 ) (17 ) (85 ) Balance June 30, 2015 (300 ) (53 ) (149 ) (502 ) Other comprehensive income (loss) before (43 ) (7 ) (38 ) (88 ) Amounts reclassified from Accumulated other comprehensive net losses — 18 — 18 Income tax benefit (expense) (10 ) (2 ) 14 2 Net current period other comprehensive income (loss) (53 ) 9 (24 ) (68 ) Balance June 30, 2016 (353 ) (44 ) (173 ) (570 ) Other comprehensive income (loss) before reclassifications (3 ) (4 ) 27 20 Amounts reclassified from Accumulated other comprehensive net losses — 11 9 20 Income tax benefit (expense) — — (13 ) (13 ) Net current period other comprehensive income (loss) (3 ) 7 23 27 Balance June 30, 2017 $ (356 ) $ (37 ) $ (150 ) $ (543 ) 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, 2017 , 2016 and 2015 , Other comprehensive losses on these loans totaled $2 , $14 and $9 , respectively, and there were no amounts reclassified from Accumulated other comprehensive net (losses) income for the periods presented. Pension and postretirement benefit reclassification adjustments are reflected in Cost of products sold, Selling and administrative expenses and Research and development costs. |
NET EARNINGS PER SHARE (EPS)
NET EARNINGS PER SHARE (EPS) | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
NET EARNINGS PER SHARE (EPS) | NET EARNINGS PER SHARE (EPS) The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS for the fiscal years ended June 30: 2017 2016 2015 Basic 128,953 129,472 130,310 Dilutive effect of stock options and other 2,613 2,245 2,466 Diluted 131,566 131,717 132,776 Antidilutive stock options and other 11 42 23 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
STOCK-BASED COMPENSATION PLANS | 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 million common shares that may be issued for stock-based compensation purposes. As of June 30, 2017 , the Company is authorized to grant up to approximately 7 million common shares under the Plan, and, as of June 30, 2017 , approximately 7 million common shares were available for grant. 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: 2017 2016 2015 Cost of products sold $ 7 $ 6 $ 4 Selling and administrative expenses 40 35 25 Research and development costs 4 4 3 Total compensation costs $ 51 $ 45 $ 32 Related income tax benefit $ 19 $ 17 $ 12 Cash received during fiscal years 2017 , 2016 and 2015 from stock options exercised under all stock-based payment arrangements was $81 , $180 and $230 , respectively. The Company issues shares for stock-based compensation plans from treasury stock. The Company may repurchase shares under its Evergreen Program to offset the estimated impact of share dilution related to stock-based awards (See Note 13). 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 2017 , 2016 and 2015 was estimated on the date of grant using the Black-Scholes valuation model and assumptions noted in the following table: 2017 2016 2015 Expected life 5.5 years 5.6 years 5.6 to 5.8 years Weighted-average expected life 5.5 years 5.6 years 5.7 years Expected volatility 16.2% to 16.9% 16.4% to 17.3% 16.3% to 18.6% Weighted-average volatility 16.9% 17.2% 16.6% Risk-free interest rate 1.3% to 2.2% 1.3% to 1.7% 1.4% to 2.0% Weighted-average risk-free interest rate 1.3% 1.7% 1.9% Dividend yield 2.4% to 2.8% 2.5% to 2.8% 2.8% to 3.4% Weighted-average dividend yield 2.6% 2.8% 3.3% The expected life of the stock options is based on observed historical exercise patterns. 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: Number of Weighted- Average Aggregate Options outstanding as of June 30, 2016 6,827 $ 85 7 years $ 366 Granted 1,318 123 Exercised (1,115 ) 75 Canceled (123 ) 112 Options outstanding as of June 30, 2017 6,907 $ 93 6 years $ 277 Options vested as of June 30, 2017 3,835 $ 80 5 years $ 204 The weighted-average fair value per share of each option granted during fiscal years 2017 , 2016 and 2015 , estimated at the grant date using the Black-Scholes option pricing model was $13.75 , $13.21 and $9.65 , respectively. The total intrinsic value of options exercised in fiscal years 2017 , 2016 and 2015 was $65 , $142 and $140 , respectively. Stock option awards outstanding as of June 30, 2017 , 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 4 years and expire no later than 10 years after the grant date. The Company recognizes compensation expense on a straight-line basis over the vesting period. As of June 30, 2017 , there was $17 of total unrecognized compensation cost related to non-vested options, which is expected to be recognized over a remaining weighted-average vesting period of 1 year, subject to forfeiture changes. 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 3 to 4 years. The total number of restricted stock awards expected to vest is adjusted by actual and estimated forfeitures. Restricted stock grants receive dividend distributions earned during the vesting period upon vesting. As of June 30, 2017 , there was $1 of total unrecognized compensation cost related to non-vested restricted stock awards, which is expected to be recognized over a remaining weighted-average vesting period of 1 year. The total fair value of the shares that vested in each of the fiscal years 2017 , 2016 and 2015 was $1 for all fiscal years. The weighted-average grant-date fair value of awards granted was $131.67 , $128.91 and $95.67 per share for fiscal years 2017 , 2016 and 2015 , respectively. A summary of the status of the Company’s restricted stock awards is presented below: Number of Weighted-Average Restricted stock awards as of June 30, 2016 13 $ 108 Granted 10 132 Vested (4 ) 110 Forfeited (1 ) 96 Restricted stock awards as of June 30, 2017 18 $ 120 Performance Units As of June 30, 2017 , there was $31 in unrecognized compensation cost related to non-vested performance unit grants that is expected to be recognized over a remaining weighted-average performance period of 1 year. The weighted-average grant-date fair value of awards granted was $122.73 , $92.35 and $89.75 per share for fiscal years 2017 , 2016 and 2015 , respectively. A summary of the status of the Company’s performance unit awards is presented below: Number of Weighted-Average Performance unit awards as of June 30, 2016 952 $ 90 Granted 253 123 Distributed (35 ) 59 Forfeited (308 ) 87 Performance unit awards as of June 30, 2017 862 $ 102 Performance units vested and deferred as of June 30, 2017 — $ — The non-vested performance units outstanding as of June 30, 2017 and 2016 were 738,000 and 794,000 , respectively, and the weighted average grant date fair value was $108.00 and $95.18 per share, respectively. There were no shares vested during fiscal year 2017 . Deferred shares continue to earn dividends, which are also deferred. The total fair value of shares vested was $0 , $26 and $24 during fiscal years 2017 , 2016 and 2015 , respectively. Upon vesting, the recipients of the grants receive the distribution as shares or, if previously elected by eligible recipients, as deferred stock. 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 2017 , the Company granted 14,000 deferred stock units, reinvested dividends of 6,000 units and distributed 59,000 shares, which had a weighted-average fair value on the grant date of $121.37 , $125.68 and $77.15 per share, respectively. As of June 30, 2017 , 205,000 units were outstanding, which had a weighted-average fair value on the grant date of $74.28 per share. |
OTHER (INCOME) EXPENSE, NET
OTHER (INCOME) EXPENSE, NET | 12 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | OTHER (INCOME) EXPENSE, NET The major components of Other (income) expense, net, for the fiscal years ended June 30 were: 2017 2016 2015 Income from equity investees $ (19 ) $ (15 ) $ (14 ) Gain on sale of assets and investments, net (11 ) (11 ) (13 ) Interest income (4 ) (5 ) (4 ) Asset impairment charges 23 10 3 Amortization of trademarks and other intangible assets 10 8 8 Foreign exchange transaction losses, net (1 ) 1 9 Other 8 5 (2 ) Total $ 6 $ (7 ) $ (13 ) In January 2017, the Company sold an Australian distribution facility, previously reported in the International reportable segment, which resulted in $23 in cash proceeds from investing activities and a gain of $10 included in Gain on sale of assets and investments, net in the table above for the fiscal year ended June 30, 2017. In April 2016, the Company sold its Los Angeles bleach manufacturing facility, previously reported in the Cleaning reportable segment, which resulted in $20 in cash proceeds from investing activities and a gain of $11 included in Gain on sale of assets and investments, net in the table above for the fiscal year ended June 30, 2016. 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 in cash proceeds from investing activities and a net gain of $13 included in Gain on sale of assets and investments, net in the table above for the fiscal year ended June 30, 2015. During the second quarter of fiscal year 2017, the Company recognized a $21 non-cash charge related to impairing certain assets of the Company's Aplicare business within the Cleaning reportable segment. The asset impairment charge is included in Asset impairment charges in the table above for the fiscal year ended June 30, 2017 and primarily related to writing down Property, plant and equipment to fair value in connection with an updated valuation of the Aplicare business. Refer to Note 11 for further details. During fiscal year 2016, the Company recognized $9 of intangible asset impairment charges, of which $6 related to the Aplicare ® trademark within the Cleaning reportable segment. The Aplicare ® trademark impairment is included in Asset impairment charges in the table above for the fiscal year ended June 30, 2016 and was recognized based on the anticipated impact on future results from a competitive market entrant. During fiscal year 2017, the Company recognized $14 of projected environmental costs associated with its former operations at a site in Alameda County, California within Corporate. These costs are included in Other in the table above for the fiscal year ended June 30, 2017. Refer to Note 11 for further details. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes on continuing operations, by tax jurisdiction, consisted of the following for the fiscal years ended June 30: 2017 2016 2015 Current Federal $ 291 $ 254 $ 265 State 36 31 28 Foreign 38 45 38 Total current 365 330 331 Deferred Federal (29 ) 11 (13 ) State (2 ) 1 (1 ) Foreign (4 ) (7 ) (2 ) Total deferred (35 ) 5 (16 ) Total $ 330 $ 335 $ 315 The components of earnings from continuing operations before income taxes, by tax jurisdiction, consisted of the following for the fiscal years ended June 30: 2017 2016 2015 United States $ 927 $ 900 $ 829 Foreign 106 83 92 Total $ 1,033 $ 983 $ 921 A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate on continuing operations follows for the fiscal years ended June 30: 2017 2016 2015 Statutory federal tax rate 35.0 % 35.0 % 35.0 % State taxes (net of federal tax benefits) 2.2 2.1 2.1 Tax differential on foreign earnings (0.6 ) 0.5 (0.3 ) Federal domestic manufacturing deduction (2.6 ) (2.4 ) (2.1 ) Change in valuation allowance 0.2 0.5 0.6 Federal excess tax benefits (2.0 ) — — Other differences (0.3 ) (1.6 ) (1.1 ) Effective tax rate 31.9 % 34.1 % 34.2 % Applicable U.S. income taxes and foreign withholding taxes have not been provided on approximately $229 of undistributed earnings of certain foreign subsidiaries as of June 30, 2017 , because these earnings are considered indefinitely reinvested. The estimated net federal income tax liability that could arise if these earnings were not indefinitely reinvested is approximately $60 . Applicable U.S. income and foreign withholding taxes are provided on these earnings in the periods in which they are no longer considered indefinitely reinvested. Beginning with the adoption of ASU 2016-09 in the first quarter of fiscal year 2017 (See Note 1), excess tax benefits resulting from stock-based payment arrangements are recognized as income tax benefits in the consolidated statements of earnings. Prior to this adoption, such excess tax benefits were recorded as increases to Additional paid-in capital. Excess tax benefits of approximately $22 were realized and recorded to Income tax expense for fiscal year 2017. Excess tax benefits of $51 and $42 were realized and recorded to Additional paid-in capital for fiscal years 2016 and 2015 , respectively. The components of net deferred tax assets (liabilities) as of June 30 are shown below: 2017 2016 Deferred tax assets (a) Compensation and benefit programs $ 182 $ 193 Basis difference related to Venture Agreement 30 30 Accruals and reserves 41 34 Inventory costs 25 21 Net operating loss and tax credit carryforwards 52 48 Other 54 54 Subtotal 384 380 Valuation allowance (40 ) (37 ) Total deferred tax assets 344 343 Deferred tax liabilities (a) Fixed and intangible assets (311 ) (325 ) Low-income housing partnerships (25 ) (23 ) Unremitted foreign earnings (7 ) (16 ) Other (24 ) (25 ) Total deferred tax liabilities (367 ) (389 ) Net deferred tax assets (liabilities) $ (23 ) $ (46 ) (a) In fiscal year 2016, the Company prospectively adopted ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," requiring all deferred tax assets and liabilities to be classified as noncurrent. The Company reviews its deferred tax assets for recoverability on a quarterly basis. 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: 2017 2016 Valuation allowance at beginning of year $ (37 ) $ (34 ) Net decrease/(increase) for other foreign deferred tax assets — 3 Net decrease/(increase) for foreign net operating loss carryforwards and tax credits (3 ) (6 ) Valuation allowance at end of year $ (40 ) $ (37 ) As of June 30, 2017 , the Company had foreign tax credit carryforwards of $26 for U.S. income tax purposes with expiration dates between fiscal years 2023 and 2027 . Tax credit carryforwards in foreign jurisdictions of $20 have expiration dates in fiscal year 2031 . Tax credit carryforwards in foreign jurisdictions of $1 can be carried forward indefinitely. Tax benefits from foreign net operating loss carryforwards of $18 have expiration dates between fiscal years 2018 and 2037. Tax benefits from foreign net operating loss carryforwards of $13 can be carried forward indefinitely. 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, 2012. Various income tax returns in state and foreign jurisdictions are currently in the process of examination. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. As of June 30, 2017 and 2016 , the total balance of accrued interest and penalties related to uncertain tax positions was $3 and $3 , respectively. Interest and penalties related to uncertain tax positions included in income tax expense resulted in a net benefit of $1 , $1 and $1 in fiscal years 2017 , 2016 and 2015 , respectively. The following is a reconciliation of the beginning and ending amounts of the Company’s gross unrecognized tax benefits: 2017 2016 2015 Unrecognized tax benefits at beginning of year $ 37 $ 38 $ 71 Gross increases - tax positions in prior periods 1 3 3 Gross decreases - tax positions in prior periods (6 ) (3 ) (8 ) Gross increases - current period tax positions 9 8 6 Gross decreases - current period tax positions — — — Lapse of applicable statute of limitations (1 ) (4 ) (34 ) Settlements — (5 ) — Unrecognized tax benefits at end of year $ 40 $ 37 $ 38 Included in the balance of unrecognized tax benefits as of June 30, 2017 , 2016 and 2015 , are potential benefits of $28 , $27 and $27 , respectively, which if recognized, would affect net earnings. During the fiscal year ended June 30, 2015, $32 of gross unrecognized tax benefits relating to other discontinued operations for periods prior to fiscal year 2015 were recognized upon the expiration of the applicable statute of limitations. Recognition of these previously disclosed tax benefits had no impact on the Company’s cash flow or earnings from continuing operations for the fiscal years ended June 30, 2017 , 2016 and 2015 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Retirement Income Plans The Company has various retirement income plans for eligible domestic and international employees. As of June 30, 2017 and 2016 , the domestic retirement income plans are frozen for most participants, and the benefits of the domestic retirement income plans are generally based on either employee years of service and compensation or a stated dollar amount per year of service. The Company contributed $31 , $31 and $13 to its domestic retirement income plans during fiscal years 2017 , 2016 and 2015 , respectively. The Company's funding policy is to contribute amounts sufficient to meet benefit payments and minimum funding requirements as set forth in employee benefit tax laws plus additional amounts as the Company may determine to be appropriate. 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 benefit obligation (ABO) was 6.50% for both medical and prescription drugs for fiscal year 2017 . These rates have been assumed to gradually decrease each year until an assumed ultimate trend of 4.5% is reached in 2037 . The health care cost trend rate assumption has a minimal effect on the amounts reported due primarily to the existence of benefit cap provisions in the Company’s domestic plan. As such, the effect of a hypothetical 100 basis point increase or decrease in the assumed domestic health care cost trend rate on the total service and interest cost components as well as the postretirement benefit obligation would have been immaterial for each of the fiscal years ended June 30, 2017 , 2016 and 2015 . Benefit Obligation and Funded Status 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 2017 2016 2017 2016 Change in benefit obligations: Benefit obligation as of beginning of year $ 673 $ 639 $ 47 $ 45 Service cost 1 1 — — Interest cost 22 26 2 2 Actuarial loss (gain) (21 ) 51 (4 ) 2 Plan amendments — (1 ) — — Translation and other adjustments — (1 ) — — Benefits paid (42 ) (42 ) (3 ) (2 ) Benefit obligation as of end of year 633 673 42 47 Change in plan assets: Fair value of assets as of beginning of year $ 423 $ 409 $ — $ — Actual return on plan assets 22 26 — — Employer contributions 31 31 3 2 Benefits paid (42 ) (42 ) (3 ) (2 ) Translation and other adjustments — (1 ) — — Fair value of plan assets as of end of year 434 423 — — Accrued benefit cost, net funded status $ (199 ) $ (250 ) $ (42 ) $ (47 ) Amount recognized in the balance sheets consists of: Pension benefit assets $ 2 $ 1 $ — $ — Current accrued benefit liability (15 ) (14 ) (3 ) (3 ) Non-current accrued benefit liability (186 ) (237 ) (39 ) (44 ) Accrued benefit cost, net $ (199 ) $ (250 ) $ (42 ) $ (47 ) For the retirement income plans, the benefit obligation is the projected benefit obligation (PBO). For the retirement health care plan, the benefit obligation is the ABO. The ABO for all retirement income plans was $632 , $596 and $559 as of June 30, 2017 , 2016 and 2015 , respectively. Retirement income plans with ABO in excess of plan assets as of June 30 were as follows: ABO Exceeds the Fair Value of Plan Assets 2017 2016 Projected benefit obligation $ 611 $ 651 Accumulated benefit obligation 610 650 Fair value of plan assets 409 399 Net Periodic Benefit Cost The net cost of the retirement income and health care plans for the fiscal years ended June 30 included the following components: Retirement Income Retirement Health Care 2017 2016 2015 2017 2016 2015 Service cost $ 1 $ 1 $ 2 $ — $ — $ — Interest cost 22 26 25 2 2 2 Expected return on plan assets (20 ) (17 ) (20 ) — — — Amortization of unrecognized items 11 10 12 (2 ) (3 ) 2 Total $ 14 $ 20 $ 19 $ — $ (1 ) $ 4 Items not yet recognized as a component of postretirement expense as of June 30, 2017 , consisted of: Retirement Retirement Net actuarial loss (gain) $ 262 $ (16 ) Prior service benefit — (5 ) Net deferred income tax (assets) liabilities (98 ) 7 Accumulated other comprehensive loss (income) $ 164 $ (14 ) Net actuarial loss (gain) recorded in Accumulated other comprehensive net (losses) income for the fiscal year ended June 30, 2017 , included the following: Retirement Retirement Net actuarial loss (gain) as of beginning of year $ 296 $ (13 ) Amortization during the year (11 ) 1 Loss (gain) during the year (23 ) (4 ) Net actuarial loss (gain) as of end of year $ 262 $ (16 ) The Company uses the straight-line amortization method for unrecognized prior service costs and benefits. In fiscal year 2018, the Company expects to recognize, on a pre-tax basis, $7 of the net actuarial loss as a component of net periodic benefit cost for the retirement income plans. In addition, in fiscal year 2018, the Company expects to recognize, on a pre-tax basis, $3 of the net actuarial gain as a component of net periodic benefit cost for the retirement health care plans. Assumptions 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 2017 2016 2017 2016 Discount rate 3.70 % 3.42 % 3.66 % 3.42 % Rate of compensation increase 2.83 % 2.92 % n/a n/a Weighted-average assumptions used to estimate the retirement income and retirement health care costs as of June 30 were as follows: Retirement Income 2017 2016 2015 Discount rate 3.42 % 4.20 % 4.05 % Rate of compensation increase 2.92 % 3.37 % 4.46 % Expected return on plan assets 4.73 % 4.34 % 5.28 % Retirement Health Care 2017 2016 2015 Discount rate 3.42 % 4.16 % 4.00 % 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 Expected benefit payments for the Company’s retirement income and retirement health care plans as of June 30, 2017 , were as follows: Retirement Retirement 2018 $ 40 $ 3 2019 51 3 2020 38 3 2021 37 3 2022 37 3 Fiscal years 2023 through 2027 190 12 Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Plan Assets 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 2017 2016 2017 2016 U.S. equity 11 % 11 % 11 % 11 % International equity 12 % 12 % 12 % 11 % Fixed income 74 % 74 % 73 % 74 % Other 3 % 3 % 4 % 4 % 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 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: 2017 Level 1 Level 2 Total Cash equivalents $ 2 $ — $ 2 Total assets in the fair value hierarchy 2 — 2 Common collective trusts measured at net asset value Bond funds $ 310 International equity funds 64 Domestic equity funds 46 Real estate fund 12 Total common collective trusts measured at net asset value 432 Total assets at fair value $ 434 2016 Level 1 Level 2 Total Cash equivalents $ 2 $ — $ 2 Total assets in the fair value hierarchy 2 — 2 Common collective trusts measured at net asset value Bond funds $ 307 International equity funds 56 Domestic equity funds 44 Real estate fund 14 Total common collective trusts measured at net asset value 421 Total assets at fair value $ 423 The carrying value of cash equivalents approximates its fair value as of June 30, 2017 and 2016 . Common collective trust funds are not publicly traded and 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, 2017 and 2016 . 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 various defined contribution plans for eligible domestic and international employees. The aggregate cost of the domestic defined contribution plans was $47 , $45 and $45 in fiscal years 2017 , 2016 and 2015 , respectively. The aggregate cost of the international defined contribution plans was $3 for the fiscal years ended June 30, 2017 , 2016 and 2015 . |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company operates through strategic business units that are aggregated into the following four reportable segments based on the economics and nature of the products sold: • Cleaning consists of laundry, home care and professional products marketed and sold in the United States. Products within this segment include laundry additives, including bleach products under the Clorox ® brand and Clorox 2 ® stain fighter and color booster; home care products, primarily under the Clorox ® , Formula 409 ® , Liquid-Plumr ® , Pine-Sol ® , S.O.S ® and Tilex ® brands; naturally derived products under the Green Works ® brand; and professional cleaning and disinfecting products under the Clorox ® , Dispatch ® , Aplicare ® , HealthLink ® and Clorox Healthcare ® brands. • Household consists of charcoal, bags, wraps and containers, cat litter and digestive health products marketed and sold in the United States. Products within this segment include charcoal products under the Kingsford ® and Match Light ® brands; bags, wraps and containers under the Glad ® brand; cat litter products under the Fresh Step ® , Scoop Away ® and Ever Clean ® brands; and digestive health products under the RenewLife ® brand. • Lifestyle consists of food products, water-filtration systems and filters and natural personal care products marketed and sold in the United States. Products within this segment include dressings and sauces, primarily under the Hidden Valley ® , KC Masterpiece ® , Kingsford ® and Soy Vay ® brands; water-filtration systems and filters under the Brita ® brand; and natural personal care products under the Burt’s Bees ® brand. • International consists of products sold outside the United States. Products within this segment include laundry, home care, water-filtration, digestive health products, charcoal and cat litter products, food products, bags, wraps and containers, natural personal care products and professional cleaning and disinfecting products, primarily under the Clorox ® , Glad ® , PinoLuz ® , Ayudin ® , Limpido ® , Clorinda ® , Poett ® , Mistolin ® , Lestoil ® , Bon Bril ® , Brita ® , Green Works ® , Pine-Sol ® , Agua Jane ® , Chux ® , RenewLife ® , Kingsford ® , Fresh Step ® , Scoop Away ® , Ever Clean ® , KC Masterpiece ® , Hidden Valley ® , Burt’s Bees ® brands and Clorox Healthcare ® brands. Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, other investments and deferred taxes. Fiscal Cleaning Household Lifestyle International Corporate Total Net sales 2017 $ 2,002 $ 1,961 $ 1,000 $ 1,010 $ — $ 5,973 2016 1,912 1,862 990 997 — 5,761 2015 1,824 1,794 950 1,087 — 5,655 Earnings (losses) from continuing operations before income taxes 2017 523 419 244 81 (234 ) 1,033 2016 511 428 251 66 (273 ) 983 2015 445 375 257 79 (235 ) 921 Income from equity investees 2017 — — — 19 — 19 2016 — — — 15 — 15 2015 — — — 14 — 14 Total assets (1) 2017 881 1,103 902 1,060 627 4,573 2016 883 1,092 880 1,057 598 4,510 Capital expenditures 2017 76 82 30 37 6 231 2016 44 83 18 24 3 172 2015 35 50 11 25 4 125 Depreciation and amortization 2017 51 64 20 22 6 163 2016 61 60 19 21 4 165 2015 52 67 19 24 7 169 Significant non-cash charges included in earnings (losses) from continuing operations before income taxes: Stock-based compensation 2017 16 15 9 2 9 51 2016 10 8 5 1 21 45 2015 8 7 4 1 12 32 (1) Prior year amounts have been retrospectively adjusted to conform to the current year presentation of debt issuance costs required by ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." See Note 1 for details. 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% and 26% of consolidated net sales for each of the fiscal years ended June 30, 2017 , 2016 and 2015 , respectively, and occurred across all of the Company’s reportable segments. No other customers accounted for 10% or more of the Company's consolidated net sales in any of these fiscal years. The Company’s product lines that accounted for 10% or more of consolidated net sales for the fiscal years ended June 30 were as follows: 2017 2016 2015 Home Care products 25 % 24 % 24 % Bags, wraps and containers 18 % 19 % 19 % Laundry additives 15 % 16 % 17 % Charcoal products 11 % 11 % 11 % Food products 10 % 10 % 10 % 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 Foreign Total Net sales 2017 $ 5,001 $ 972 $ 5,973 2016 4,805 956 5,761 2015 4,609 1,046 5,655 Property, plant and equipment, net 2017 823 108 931 2016 799 107 906 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company holds various equity investments with ownership percentages of up to 50% in a number of consumer products businesses, most of which operate outside the United States. The equity investments, presented in Other assets accounted for under the equity method, were $58 and $59 as of the fiscal years ended June 30, 2017 and 2016 , respectively. The Company has no ongoing capital commitments, loan requirements, guarantees or any other types of arrangements under the terms of its agreements that would require any future cash contributions or disbursements arising out of an equity investment. 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, 2017 , 2016 and 2015 were $62 , $57 and $55 , respectively. Receipts from and ending accounts receivable and payable balances related to the Company’s related parties were not significant during or as of the end of each of the fiscal years presented. |
UNAUDITED QUARTERLY DATA
UNAUDITED QUARTERLY DATA | 12 Months Ended |
Jun. 30, 2017 | |
Quarterly Financial Data [Abstract] | |
UNAUDITED QUARTERLY DATA | UNAUDITED QUARTERLY DATA Dollars in millions, except market price and per share data Quarters Ended September 30 December 31 March 31 June 30 Total Year Fiscal year ended June 30, 2017 Net sales $ 1,443 $ 1,406 $ 1,477 $ 1,647 $ 5,973 Cost of products sold 803 777 827 895 3,302 Earnings from continuing operations 179 150 172 202 703 Earnings (losses) from discontinued operations, net of tax — (1 ) — (1 ) (2 ) Net earnings 179 149 172 201 701 Per common share: Basic Continuing operations $ 1.39 $ 1.16 $ 1.34 $ 1.56 $ 5.45 Discontinued operations — — — (0.01 ) (0.02 ) Basic net earnings per share $ 1.39 $ 1.16 $ 1.34 $ 1.55 $ 5.43 Diluted Continuing operations $ 1.36 $ 1.14 $ 1.31 $ 1.53 $ 5.35 Discontinued operations — — — (0.01 ) (0.02 ) Diluted net earnings per share $ 1.36 $ 1.14 $ 1.31 $ 1.52 $ 5.33 Dividends declared per common share $ 0.80 $ 0.80 $ 0.80 $ 0.84 $ 3.24 Market price (NYSE) High $ 140.47 $ 124.70 139.30 $ 141.76 $ 141.76 Low 121.75 111.24 118.41 127.62 111.24 Year-end 133.24 Fiscal year ended June 30, 2016 Net sales $ 1,390 $ 1,345 $ 1,426 $ 1,600 $ 5,761 Cost of products sold 765 745 780 873 3,163 Earnings from continuing operations 173 151 159 165 648 Losses from discontinued operations, net of tax (1 ) (2 ) 3 — — Net earnings 172 149 162 165 648 Per common share: Basic Continuing operations $ 1.34 $ 1.16 $ 1.23 $ 1.28 $ 5.01 Discontinued operations (0.01 ) (0.01 ) 0.02 — — Basic net earnings per share $ 1.33 $ 1.15 $ 1.25 $ 1.28 $ 5.01 Diluted Continuing operations $ 1.32 $ 1.14 $ 1.21 $ 1.26 $ 4.92 Discontinued operations (0.01 ) (0.01 ) 0.02 — — Diluted net earnings per share $ 1.31 $ 1.13 $ 1.23 $ 1.26 $ 4.92 Dividends declared per common share $ 0.77 $ 0.77 $ 0.77 $ 0.80 $ 3.11 Market price (NYSE) High $ 119.75 $ 131.78 $ 132.19 $ 138.41 $ 138.41 Low 104.26 114.06 122.40 119.23 104.26 Year-end 138.39 FIVE-YEAR FINANCIAL SUMMARY The Clorox Company Years ended June 30 Dollars in millions, except per share data 2017 2016 2015 2014 2013 OPERATIONS Net sales $ 5,973 $ 5,761 $ 5,655 $ 5,514 $ 5,533 Gross profit 2,671 2,598 2,465 2,356 2,391 Earnings from continuing operations $ 703 $ 648 $ 606 $ 579 $ 573 (Losses) earnings from discontinued operations, net of tax (2 ) — (26 ) (21 ) (1 ) Net earnings $ 701 $ 648 $ 580 $ 558 $ 572 COMMON STOCK Earnings per share Continuing operations Basic $ 5.45 $ 5.01 $ 4.65 $ 4.47 $ 4.37 Diluted 5.35 4.92 4.57 4.39 4.31 Dividends declared per share 3.24 3.11 2.99 2.87 2.63 As of June 30 Dollars in millions 2017 2016 2015 2014 2013 OTHER DATA Total assets (1) $ 4,573 $ 4,510 $ 4,154 $ 4,251 $ 4,302 Long-term debt (1) 1,391 1,789 1,786 1,588 2,161 (1) Prior year amounts have been retrospectively adjusted to conform to the current year presentation of debt issuance costs required by ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." See Note 1 for details. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Jun. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | Column A Column B Column C Column D Column E Additions Deductions Description Balance at Charged to Credited to Credited Balance at Allowance for doubtful accounts Year ended June 30, 2017 $ (5 ) $ — $ 2 $ — $ (3 ) Year ended June 30, 2016 (4 ) (1 ) — — (5 ) Year ended June 30, 2015 (3 ) (1 ) — — (4 ) LIFO allowance Year ended June 30, 2017 $ (32 ) $ — $ — $ 6 $ (26 ) Year ended June 30, 2016 (34 ) (1 ) — 3 (32 ) Year ended June 30, 2015 (36 ) — — 2 (34 ) Valuation allowance on deferred tax assets Year ended June 30, 2017 $ (37 ) $ (3 ) $ — $ — $ (40 ) Year ended June 30, 2016 (34 ) (5 ) — 2 (37 ) Year ended June 30, 2015 (51 ) (4 ) — 21 (34 ) |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Business Description 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 and grocery outlets, warehouse clubs, dollar stores, e-commerce channels, military stores and other retail outlets, 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 presents 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, retirement income plans, 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 interest bearing accounts, time deposits held by financial institutions 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 income 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) expense, net. |
Inventories | Inventories Inventories are stated at the lower of cost or market. When necessary, the Company adjusts 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 Finited-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 7 - 40 years Land improvements 10 - 30 years Machinery and equipment 3 - 15 years Computer equipment 3 - 5 years Capitalized software costs 3 - 7 years 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 carrying 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 carrying 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 estimated 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 carrying 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 volumes, net sales and expense growth rates, changes in working capital, foreign exchange rates, 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. When a quantitative test is performed, the estimated fair value of an asset is compared 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, restricted stock 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 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 number of shares issued is dependent upon the achievement of specified performance targets. The performance period is three years and the payout determination is made at the end of the three -year performance period. Performance unit grants receive dividends earned during the vesting period upon vesting. 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 estimated forfeiture rates and management's assessment of the probability that performance goals will be achieved. A cumulative adjustment is recognized to compensation expense in the current period to reflect any changes in the probability of achievement of performance goals. 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 operating cash inflows. |
Employee Benefits | Employee Benefits The Company accounts for its retirement income and retirement health care plans using actuarial methods . These methods use an attribution approach that generally spreads “plan events” over the service lives or expected lifetime (for frozen plans) of plan participants. Examples of plan events are plan amendments and changes in actuarial assumptions such as the expected return on plan assets, discount rate, rate of compensation increase and certain employee-related factors, such as retirement age and mortality. The principle underlying the attribution approach is that employees render service over their employment period on a relatively “smooth” basis and, therefore, the statement of earnings effects of retirement income and retirement health care plans are recognized in the same pattern. One of the principal assumptions used in the net periodic benefit cost calculation is the expected return on plan assets. The required use of an expected return on plan assets may result in recognized expense or income that differs from the actual returns of those plan assets in any given year. Over time, however, the goal is for the expected long-term returns to approximate the actual returns and, therefore, the expectation is that the pattern of income and expense recognition should closely match the pattern of the services provided by the participants. The Company uses a market-related value method for calculating plan assets for purposes of determining the amortization of actuarial gains and losses. The differences between actual and expected returns are recognized in the net periodic benefit cost calculation over the average remaining service period or expected lifetime (for frozen plans) of the plan participants using the corridor approach. Under this approach, only actuarial gains (losses) that exceed 5% of the greater of the projected benefit obligation or the market-related value of assets are amortized to the Company's net periodic benefit cost. In developing its expected return on plan assets, the Company considers the long-term actual returns relative to the mix of investments that comprise its plan assets and also develops estimates of future investment returns by considering external sources. 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 becomes 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 Accounts payable and accrued liabilities and 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 trade promotions, coupons, returns 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. The Company provides an allowance for doubtful accounts based on its historical experience and ongoing assessment of its customers’ credit risk. |
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 manufacturing 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 other charges 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. |
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 basis. 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 income 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 Translations | 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) expense, 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) expense, 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 (loss). 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 equity investees for which earnings are not considered indefinitely reinvested is recorded as a component of deferred taxes with an offset to Other comprehensive income (loss). |
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 (loss) 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, 2017 , 2016 and 2015 , 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 (loss) 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 the consolidated statement of earnings in the current period. Cash flows from hedging activities are classified as operating activities in the consolidated statements of cash flows. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Issued Accounting Standards not yet adopted In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires presenting the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs arising from services rendered during the period. This standard also requires that other components of the net periodic benefit cost be presented separately from the line item(s) that includes service costs and outside of any subtotal of operating income, if one is presented, on a retrospective basis. Additionally, the new guidance limits the components that are eligible for capitalization in assets to only the service cost component. 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 this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation will depend on the classification of a lease as either a finance or an operating lease. ASU 2016-02 also requires expanded disclosures about leasing arrangements. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance 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 of the existing U.S. GAAP revenue recognition guidance and is intended to improve and converge with international standards on 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 guidance is effective for the Company beginning in the first quarter of fiscal year 2019 and is expected to be applied on a modified retrospective basis. Based on the Company’s preliminary assessment, the adoption of the standard is not expected to have a significant impact on its annual consolidated financial statements; however, there may be an impact on the Company’s financial results in interim periods due to the timing of recognition for certain trade promotion spending. As the Company completes its overall assessment, it is also identifying potential changes to its accounting policies, business processes, systems and controls to align with the new revenue recognition guidance and disclosure requirements. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions, including requiring excess tax benefits and tax deficiencies to be recognized as income tax benefits or expenses in the consolidated statement of earnings. Additionally, the standard requires cash flows from excess tax benefits and deficiencies, previously classified as a financing activity, to be classified as an operating activity in the consolidated statement of cash flows. The Company adopted this guidance in the first quarter of fiscal year 2017. Excess tax benefits of $22 were recognized in the consolidated statement of earnings and classified as an operating activity in the consolidated statement of cash flows during the year ended June 30, 2017. The prior period consolidated statement of cash flows has not been adjusted as permitted. The guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. The Company did not make this election and will continue to account for forfeitures on an estimated basis. In April 2015, the FASB issued 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 Company adopted this standard in the first quarter of fiscal year 2017 and retrospectively applied the standard to the June 30, 2016 consolidated balance sheet, resulting in an $8 reduction in Other assets and Long-term debt. The adoption had no impact on the Company’s consolidated statement of earnings or consolidated statement of cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Useful Lives of Property, Plant and Equipment | The table below provides estimated useful lives of property, plant and equipment by asset classification. Estimated Useful Lives Buildings and leasehold improvements 7 - 40 years Land improvements 10 - 30 years Machinery and equipment 3 - 15 years Computer equipment 3 - 5 years Capitalized software costs 3 - 7 years |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of (losses) gains from discontinued operations | The following table provides a summary of Earnings (losses) from discontinued operations for Clorox Venezuela and Earnings (losses) from discontinued operations other than Clorox Venezuela for the years ended June 30: 2017 2016 2015 Operating losses from Clorox Venezuela before income taxes $ — $ — $ (6 ) Exit costs and other related expenses for Clorox Venezuela (4 ) (2 ) (78 ) Total earnings (losses) from Clorox Venezuela before income taxes (4 ) (2 ) (84 ) Income tax benefit attributable to Clorox Venezuela 2 2 29 Total earnings (losses) from Clorox Venezuela, net of tax (2 ) — (55 ) Gains (losses) from discontinued operations other than Clorox Venezuela, net of tax — — 29 Losses from discontinued operations, net of tax $ (2 ) $ — $ (26 ) |
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 years ended June 30: 2017 2016 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 (4 ) (2 ) (10 ) Total losses from Clorox Venezuela before income taxes (4 ) (2 ) (84 ) Income tax benefit attributable to Clorox Venezuela 2 2 29 Total losses from Clorox Venezuela, net of tax (2 ) — (55 ) Gains from discontinued operations other than Clorox Venezuela, net of tax — — 29 Losses from discontinued operations, net of tax $ (2 ) $ — $ (26 ) |
BUSINESSES ACQUIRED (Tables)
BUSINESSES ACQUIRED (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the final purchase price allocation for the fair value of RenewLife’s assets acquired and liabilities assumed and related deferred income taxes. The fair value of the assets acquired and liabilities assumed reflects the final insignificant measurement period adjustments related to deferred income taxes and income taxes payable. The weighted-average estimated useful life of intangible assets subject to amortization is 15 years . RenewLife Goodwill $ 137 Trademarks 134 Customer relationships 36 Property, plant and equipment 3 Working capital, net 40 Deferred income taxes (60 ) Purchase Price $ 290 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following as of June 30: 2017 2016 Finished goods $ 363 $ 361 Raw materials and packaging 119 111 Work in process 3 3 LIFO allowances (26 ) (32 ) Total $ 459 $ 443 |
PROPERTY, PLANT AND EQUIPMENT35
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment | The components of property, plant and equipment, net, consisted of the following as of June 30: 2017 2016 Machinery and equipment $ 1,696 $ 1,607 Buildings 524 524 Capitalized software costs 371 368 Land and improvements 116 118 Construction in progress 130 112 Computer equipment 95 88 Total 2,932 2,817 Less: Accumulated depreciation and amortization (2,001 ) (1,911 ) Property, plant and equipment, net $ 931 $ 906 |
GOODWILL, TRADEMARKS AND OTHE36
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment for the fiscal years ended June 30, 2017 and 2016 were as follows: Goodwill Cleaning Household Lifestyle International Total Balance June 30, 2015 $ 323 $ 85 $ 244 $ 415 $ 1,067 Acquisition — 122 — 15 137 Effect of foreign currency translation — — — (7 ) (7 ) Balance June 30, 2016 323 207 244 423 1,197 Effect of foreign currency translation — — — (1 ) (1 ) Balance June 30, 2017 $ 323 $ 207 $ 244 $ 422 $ 1,196 |
Schedule of Intangible Assets | The changes in the carrying amount of trademarks and other intangible assets for the fiscal years ended June 30 were as follows: As of June 30, 2017 As of June 30, 2016 Gross Accumulated Net carrying Gross Accumulated Net carrying Trademarks not subject to amortization $ 645 $ — $ 645 $ 647 $ — $ 647 Trademarks subject to amortization 32 23 9 32 22 10 Other intangible assets 358 290 68 358 280 78 Total $ 1,035 $ 313 $ 722 $ 1,037 $ 302 $ 735 |
ACCOUNTS PAYABLE AND ACCRUED 37
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consisted of the following as of June 30: 2017 2016 Accounts payable $ 501 $ 490 Compensation and employee benefit costs 162 192 Trade and sales promotion 117 127 Dividends 116 108 Other 109 118 Total $ 1,005 $ 1,035 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Notes and loans payable, which mature in less than one year, included the following as of June 30: 2017 2016 Commercial paper $ 403 $ 522 Foreign borrowings 1 1 Total $ 404 $ 523 |
Schedule of Long-term Debt Instruments | Long-term debt, carried at face value net of unamortized discounts, premiums and debt issuance costs, included the following as of June 30: 2017 2016 Senior unsecured notes and debentures: 5.95%, $400 due October 2017 $ 400 $ 400 3.80%, $300 due November 2021 298 297 3.05%, $600 due September 2022 596 596 3.50%, $500 due December 2024 497 496 Total 1,791 1,789 Less: Current maturities of long-term debt (400 ) — Long-term debt (1) $ 1,391 $ 1,789 (1) Prior year amounts have been retrospectively adjusted to conform to the current year presentation of debt issuance costs required by ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." See Note 1 for details. |
Schedule of Line of Credit Facilities | The Company’s borrowing capacity under other financing arrangements as of June 30 was as follows: 2017 2016 Revolving credit facility $ 1,100 $ 1,100 Foreign and other credit lines 29 28 Total $ 1,129 $ 1,128 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Other liabilities consisted of the following as of June 30: 2017 2016 Venture agreement terminal obligation, net $ 317 $ 302 Employee benefit obligations 298 335 Taxes 42 40 Other 113 107 Total $ 770 $ 784 |
FINANCIAL INSTRUMENTS AND FAI40
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The effects of derivative instruments designated as hedging instruments on Other comprehensive income (loss) and Net earnings were as follows during the fiscal years ended June 30: Gains (losses) 2017 2016 2015 Commodity purchase derivative contracts $ (3 ) $ (4 ) $ (13 ) Foreign exchange derivative contracts (1 ) (3 ) 7 Interest rate derivative contracts — — (12 ) Total $ (4 ) $ (7 ) $ (18 ) |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | Gains (losses) reclassified from Accumulated 2017 2016 2015 Commodity purchase derivative contracts $ (2 ) $ (13 ) $ (5 ) Foreign exchange derivative contracts (3 ) 1 3 Interest rate derivative contracts (6 ) (6 ) (5 ) Total $ (11 ) $ (18 ) $ (7 ) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the fair value of Company’s assets and liabilities for which disclosure of fair value is required as of June 30: 2017 2016 Assets Balance sheet classification Fair value Carrying Estimated Carrying Estimated Investments including money market funds Cash and cash equivalents (a) 1 $ 221 $ 221 $ 234 $ 234 Time deposits Cash and cash equivalents (a) 2 115 115 79 79 Commodity purchase futures contracts Prepaid expenses and other current assets 1 — — 1 1 Commodity purchase swaps contracts Prepaid expenses and other current assets 2 1 1 — — Foreign exchange forward contracts Prepaid expenses and other current assets 2 — — 1 1 Commodity purchase swaps contracts Other assets 2 — — 1 1 Trust assets for nonqualified deferred compensation plans Other assets 1 72 72 52 52 $ 409 $ 409 $ 368 $ 368 Liabilities Notes and loans payable Notes and loans payable (b) 2 $ 404 $ 404 $ 523 $ 523 Commodity purchase swaps contracts Accounts payable and accrued liabilities 2 1 1 1 1 Foreign exchange forward contracts Accounts payable and accrued liabilities 2 1 1 4 4 Current maturities of long-term debt and Long-term debt Current maturities of long- (c) 2 1,791 1,855 1,789 1,922 $ 2,197 $ 2,261 $ 2,317 $ 2,450 (a) Cash and cash equivalents are composed of time deposits and other interest bearing investments including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value. (b) Notes and loan payable 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) Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of Long-term debt, including current maturities, was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2 . |
LEASES AND OTHER COMMITMENTS (T
LEASES AND OTHER COMMITMENTS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
LEASES AND OTHER COMMITMENTS [Abstract] | |
Schedule of future minimum annual lease commitments required under existing non-cancelable operating and capital lease agreements | The future minimum annual lease payments required under the Company’s existing non-cancelable operating and capital lease agreements as of June 30, 2017 , were as follows: Year Operating Capital 2018 $ 52 $ 2 2019 46 1 2020 41 — 2021 37 — 2022 32 — Thereafter 137 — Total $ 345 $ 3 |
Unrecorded Unconditional Purchase Obligations Disclosure | As of June 30, 2017 , the Company’s purchase obligations were as follows: Year Purchase 2018 $ 158 2019 70 2020 36 2021 20 2022 13 Thereafter 21 Total $ 318 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share Repurchases under Authorized Programs | Share repurchases under the Evergreen Program were as follows during the fiscal years ended June 30: 2017 2016 2015 Amount Shares Amount Shares Amount Shares Evergreen Program $ 189 1,505 $ 254 2,151 $ 434 4,016 |
Dividends Declared | Dividends per share declared and paid, respectively, during the fiscal years ended June 30 were as follows: 2017 2016 2015 Dividends per share declared $ 3.24 $ 3.11 $ 2.99 Dividends per share paid 3.20 3.08 2.96 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive net (losses) income by component were as follows for the fiscal years ended June 30: Foreign currency Net Pension and Accumulated Balance June 30, 2014 $ (246 ) $ (39 ) $ (132 ) $ (417 ) Other comprehensive income (loss) before reclassifications (92 ) (18 ) (29 ) (139 ) Amounts reclassified from Accumulated other comprehensive net losses — 7 — 7 Recognition of deferred foreign currency translation loss 30 — — 30 Income tax benefit (expense) 8 (3 ) 12 17 Net current period other comprehensive income (loss) (54 ) (14 ) (17 ) (85 ) Balance June 30, 2015 (300 ) (53 ) (149 ) (502 ) Other comprehensive income (loss) before (43 ) (7 ) (38 ) (88 ) Amounts reclassified from Accumulated other comprehensive net losses — 18 — 18 Income tax benefit (expense) (10 ) (2 ) 14 2 Net current period other comprehensive income (loss) (53 ) 9 (24 ) (68 ) Balance June 30, 2016 (353 ) (44 ) (173 ) (570 ) Other comprehensive income (loss) before reclassifications (3 ) (4 ) 27 20 Amounts reclassified from Accumulated other comprehensive net losses — 11 9 20 Income tax benefit (expense) — — (13 ) (13 ) Net current period other comprehensive income (loss) (3 ) 7 23 27 Balance June 30, 2017 $ (356 ) $ (37 ) $ (150 ) $ (543 ) |
NET EARNINGS PER SHARE (EPS) (T
NET EARNINGS PER SHARE (EPS) (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS for the fiscal years ended June 30: 2017 2016 2015 Basic 128,953 129,472 130,310 Dilutive effect of stock options and other 2,613 2,245 2,466 Diluted 131,566 131,717 132,776 Antidilutive stock options and other 11 42 23 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | 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: 2017 2016 2015 Cost of products sold $ 7 $ 6 $ 4 Selling and administrative expenses 40 35 25 Research and development costs 4 4 3 Total compensation costs $ 51 $ 45 $ 32 Related income tax benefit $ 19 $ 17 $ 12 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each stock option award granted during fiscal years 2017 , 2016 and 2015 was estimated on the date of grant using the Black-Scholes valuation model and assumptions noted in the following table: 2017 2016 2015 Expected life 5.5 years 5.6 years 5.6 to 5.8 years Weighted-average expected life 5.5 years 5.6 years 5.7 years Expected volatility 16.2% to 16.9% 16.4% to 17.3% 16.3% to 18.6% Weighted-average volatility 16.9% 17.2% 16.6% Risk-free interest rate 1.3% to 2.2% 1.3% to 1.7% 1.4% to 2.0% Weighted-average risk-free interest rate 1.3% 1.7% 1.9% Dividend yield 2.4% to 2.8% 2.5% to 2.8% 2.8% to 3.4% Weighted-average dividend yield 2.6% 2.8% 3.3% |
Schedule of Share-based Compensation, Stock Options, Activity | Details of the Company’s stock option activities are summarized below: Number of Weighted- Average Aggregate Options outstanding as of June 30, 2016 6,827 $ 85 7 years $ 366 Granted 1,318 123 Exercised (1,115 ) 75 Canceled (123 ) 112 Options outstanding as of June 30, 2017 6,907 $ 93 6 years $ 277 Options vested as of June 30, 2017 3,835 $ 80 5 years $ 204 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the status of the Company’s restricted stock awards is presented below: Number of Weighted-Average Restricted stock awards as of June 30, 2016 13 $ 108 Granted 10 132 Vested (4 ) 110 Forfeited (1 ) 96 Restricted stock awards as of June 30, 2017 18 $ 120 |
Share-based Compensation, Performance Shares Award Outstanding Activity | A summary of the status of the Company’s performance unit awards is presented below: Number of Weighted-Average Performance unit awards as of June 30, 2016 952 $ 90 Granted 253 123 Distributed (35 ) 59 Forfeited (308 ) 87 Performance unit awards as of June 30, 2017 862 $ 102 Performance units vested and deferred as of June 30, 2017 — $ — |
OTHER (INCOME) EXPENSE, NET (Ta
OTHER (INCOME) EXPENSE, NET (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Major Components of Other (Income) Expense, Net | The major components of Other (income) expense, net, for the fiscal years ended June 30 were: 2017 2016 2015 Income from equity investees $ (19 ) $ (15 ) $ (14 ) Gain on sale of assets and investments, net (11 ) (11 ) (13 ) Interest income (4 ) (5 ) (4 ) Asset impairment charges 23 10 3 Amortization of trademarks and other intangible assets 10 8 8 Foreign exchange transaction losses, net (1 ) 1 9 Other 8 5 (2 ) Total $ 6 $ (7 ) $ (13 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes on Continuing Operations by Tax Jurisdiction | The provision for income taxes on continuing operations, by tax jurisdiction, consisted of the following for the fiscal years ended June 30: 2017 2016 2015 Current Federal $ 291 $ 254 $ 265 State 36 31 28 Foreign 38 45 38 Total current 365 330 331 Deferred Federal (29 ) 11 (13 ) State (2 ) 1 (1 ) Foreign (4 ) (7 ) (2 ) Total deferred (35 ) 5 (16 ) Total $ 330 $ 335 $ 315 |
Earnings from Continuing Operations before Income Taxes, by Tax Jurisdiction | The components of earnings from continuing operations before income taxes, by tax jurisdiction, consisted of the following for the fiscal years ended June 30: 2017 2016 2015 United States $ 927 $ 900 $ 829 Foreign 106 83 92 Total $ 1,033 $ 983 $ 921 |
Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate on continuing operations follows for the fiscal years ended June 30: 2017 2016 2015 Statutory federal tax rate 35.0 % 35.0 % 35.0 % State taxes (net of federal tax benefits) 2.2 2.1 2.1 Tax differential on foreign earnings (0.6 ) 0.5 (0.3 ) Federal domestic manufacturing deduction (2.6 ) (2.4 ) (2.1 ) Change in valuation allowance 0.2 0.5 0.6 Federal excess tax benefits (2.0 ) — — Other differences (0.3 ) (1.6 ) (1.1 ) Effective tax rate 31.9 % 34.1 % 34.2 % |
Components of Net Deferred Tax Assets (Liabilities) | The components of net deferred tax assets (liabilities) as of June 30 are shown below: 2017 2016 Deferred tax assets (a) Compensation and benefit programs $ 182 $ 193 Basis difference related to Venture Agreement 30 30 Accruals and reserves 41 34 Inventory costs 25 21 Net operating loss and tax credit carryforwards 52 48 Other 54 54 Subtotal 384 380 Valuation allowance (40 ) (37 ) Total deferred tax assets 344 343 Deferred tax liabilities (a) Fixed and intangible assets (311 ) (325 ) Low-income housing partnerships (25 ) (23 ) Unremitted foreign earnings (7 ) (16 ) Other (24 ) (25 ) Total deferred tax liabilities (367 ) (389 ) Net deferred tax assets (liabilities) $ (23 ) $ (46 ) (a) In fiscal year 2016, the Company prospectively adopted ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," requiring all deferred tax assets and liabilities to be classified as noncurrent. |
Summary of Changes in Deferred Tax Asset Valuation Allowance | Details of the valuation allowance were as follows as of June 30: 2017 2016 Valuation allowance at beginning of year $ (37 ) $ (34 ) Net decrease/(increase) for other foreign deferred tax assets — 3 Net decrease/(increase) for foreign net operating loss carryforwards and tax credits (3 ) (6 ) Valuation allowance at end of year $ (40 ) $ (37 ) |
Reconciliation of Gross Unrecognized Tax Benefits | The following is a reconciliation of the beginning and ending amounts of the Company’s gross unrecognized tax benefits: 2017 2016 2015 Unrecognized tax benefits at beginning of year $ 37 $ 38 $ 71 Gross increases - tax positions in prior periods 1 3 3 Gross decreases - tax positions in prior periods (6 ) (3 ) (8 ) Gross increases - current period tax positions 9 8 6 Gross decreases - current period tax positions — — — Lapse of applicable statute of limitations (1 ) (4 ) (34 ) Settlements — (5 ) — Unrecognized tax benefits at end of year $ 40 $ 37 $ 38 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | 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 2017 2016 2017 2016 Change in benefit obligations: Benefit obligation as of beginning of year $ 673 $ 639 $ 47 $ 45 Service cost 1 1 — — Interest cost 22 26 2 2 Actuarial loss (gain) (21 ) 51 (4 ) 2 Plan amendments — (1 ) — — Translation and other adjustments — (1 ) — — Benefits paid (42 ) (42 ) (3 ) (2 ) Benefit obligation as of end of year 633 673 42 47 Change in plan assets: Fair value of assets as of beginning of year $ 423 $ 409 $ — $ — Actual return on plan assets 22 26 — — Employer contributions 31 31 3 2 Benefits paid (42 ) (42 ) (3 ) (2 ) Translation and other adjustments — (1 ) — — Fair value of plan assets as of end of year 434 423 — — Accrued benefit cost, net funded status $ (199 ) $ (250 ) $ (42 ) $ (47 ) |
Schedule of Amounts Recognized in the Balance Sheets | Amount recognized in the balance sheets consists of: Pension benefit assets $ 2 $ 1 $ — $ — Current accrued benefit liability (15 ) (14 ) (3 ) (3 ) Non-current accrued benefit liability (186 ) (237 ) (39 ) (44 ) Accrued benefit cost, net $ (199 ) $ (250 ) $ (42 ) $ (47 ) |
Schedule of Accumulated Benefit Obligations in Excess of Plan Assets | Retirement income plans with ABO in excess of plan assets as of June 30 were as follows: ABO Exceeds the Fair Value of Plan Assets 2017 2016 Projected benefit obligation $ 611 $ 651 Accumulated benefit obligation 610 650 Fair value of plan assets 409 399 |
Schedule of Components of Net Periodic Benefit Cost | The net cost of the retirement income and health care plans for the fiscal years ended June 30 included the following components: Retirement Income Retirement Health Care 2017 2016 2015 2017 2016 2015 Service cost $ 1 $ 1 $ 2 $ — $ — $ — Interest cost 22 26 25 2 2 2 Expected return on plan assets (20 ) (17 ) (20 ) — — — Amortization of unrecognized items 11 10 12 (2 ) (3 ) 2 Total $ 14 $ 20 $ 19 $ — $ (1 ) $ 4 |
Schedule of Items Not Yet Recognized as a Component of Postretirement Expense | Items not yet recognized as a component of postretirement expense as of June 30, 2017 , consisted of: Retirement Retirement Net actuarial loss (gain) $ 262 $ (16 ) Prior service benefit — (5 ) Net deferred income tax (assets) liabilities (98 ) 7 Accumulated other comprehensive loss (income) $ 164 $ (14 ) |
Summary of Amounts Recognized in Accumulated Other Comprehensive Net Losses | Net actuarial loss (gain) recorded in Accumulated other comprehensive net (losses) income for the fiscal year ended June 30, 2017 , included the following: Retirement Retirement Net actuarial loss (gain) as of beginning of year $ 296 $ (13 ) Amortization during the year (11 ) 1 Loss (gain) during the year (23 ) (4 ) Net actuarial loss (gain) as of end of year $ 262 $ (16 ) |
Schedule of Weighted Average Assumptions Used | 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 2017 2016 2017 2016 Discount rate 3.70 % 3.42 % 3.66 % 3.42 % Rate of compensation increase 2.83 % 2.92 % n/a n/a Weighted-average assumptions used to estimate the retirement income and retirement health care costs as of June 30 were as follows: Retirement Income 2017 2016 2015 Discount rate 3.42 % 4.20 % 4.05 % Rate of compensation increase 2.92 % 3.37 % 4.46 % Expected return on plan assets 4.73 % 4.34 % 5.28 % Retirement Health Care 2017 2016 2015 Discount rate 3.42 % 4.16 % 4.00 % |
Schedule of Expected Benefit Payments | Expected benefit payments for the Company’s retirement income and retirement health care plans as of June 30, 2017 , were as follows: Retirement Retirement 2018 $ 40 $ 3 2019 51 3 2020 38 3 2021 37 3 2022 37 3 Fiscal years 2023 through 2027 190 12 |
Schedule of Target Allocation and Weighted Average Allocation of Plan Assets | 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: 2017 Level 1 Level 2 Total Cash equivalents $ 2 $ — $ 2 Total assets in the fair value hierarchy 2 — 2 Common collective trusts measured at net asset value Bond funds $ 310 International equity funds 64 Domestic equity funds 46 Real estate fund 12 Total common collective trusts measured at net asset value 432 Total assets at fair value $ 434 2016 Level 1 Level 2 Total Cash equivalents $ 2 $ — $ 2 Total assets in the fair value hierarchy 2 — 2 Common collective trusts measured at net asset value Bond funds $ 307 International equity funds 56 Domestic equity funds 44 Real estate fund 14 Total common collective trusts measured at net asset value 421 Total assets at fair value $ 423 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 2017 2016 2017 2016 U.S. equity 11 % 11 % 11 % 11 % International equity 12 % 12 % 12 % 11 % Fixed income 74 % 74 % 73 % 74 % Other 3 % 3 % 4 % 4 % Total 100 % 100 % 100 % 100 % |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Selected Financial Information Relating to the Company's Segments | Fiscal Cleaning Household Lifestyle International Corporate Total Net sales 2017 $ 2,002 $ 1,961 $ 1,000 $ 1,010 $ — $ 5,973 2016 1,912 1,862 990 997 — 5,761 2015 1,824 1,794 950 1,087 — 5,655 Earnings (losses) from continuing operations before income taxes 2017 523 419 244 81 (234 ) 1,033 2016 511 428 251 66 (273 ) 983 2015 445 375 257 79 (235 ) 921 Income from equity investees 2017 — — — 19 — 19 2016 — — — 15 — 15 2015 — — — 14 — 14 Total assets (1) 2017 881 1,103 902 1,060 627 4,573 2016 883 1,092 880 1,057 598 4,510 Capital expenditures 2017 76 82 30 37 6 231 2016 44 83 18 24 3 172 2015 35 50 11 25 4 125 Depreciation and amortization 2017 51 64 20 22 6 163 2016 61 60 19 21 4 165 2015 52 67 19 24 7 169 Significant non-cash charges included in earnings (losses) from continuing operations before income taxes: Stock-based compensation 2017 16 15 9 2 9 51 2016 10 8 5 1 21 45 2015 8 7 4 1 12 32 (1) Prior year amounts have been retrospectively adjusted to conform to the current year presentation of debt issuance costs required by ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." See Note 1 for details. |
Schedules of Concentration of Risk, by Risk Factor | The Company’s product lines that accounted for 10% or more of consolidated net sales for the fiscal years ended June 30 were as follows: 2017 2016 2015 Home Care products 25 % 24 % 24 % Bags, wraps and containers 18 % 19 % 19 % Laundry additives 15 % 16 % 17 % Charcoal products 11 % 11 % 11 % Food products 10 % 10 % 10 % |
Net Sales and Long-Lived Assets By Geographic Area | 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 Foreign Total Net sales 2017 $ 5,001 $ 972 $ 5,973 2016 4,805 956 5,761 2015 4,609 1,046 5,655 Property, plant and equipment, net 2017 823 108 931 2016 799 107 906 |
UNAUDITED QUARTERLY DATA (Table
UNAUDITED QUARTERLY DATA (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Quarterly Financial Data [Abstract] | |
Unaudited Quarterly Data | Dollars in millions, except market price and per share data Quarters Ended September 30 December 31 March 31 June 30 Total Year Fiscal year ended June 30, 2017 Net sales $ 1,443 $ 1,406 $ 1,477 $ 1,647 $ 5,973 Cost of products sold 803 777 827 895 3,302 Earnings from continuing operations 179 150 172 202 703 Earnings (losses) from discontinued operations, net of tax — (1 ) — (1 ) (2 ) Net earnings 179 149 172 201 701 Per common share: Basic Continuing operations $ 1.39 $ 1.16 $ 1.34 $ 1.56 $ 5.45 Discontinued operations — — — (0.01 ) (0.02 ) Basic net earnings per share $ 1.39 $ 1.16 $ 1.34 $ 1.55 $ 5.43 Diluted Continuing operations $ 1.36 $ 1.14 $ 1.31 $ 1.53 $ 5.35 Discontinued operations — — — (0.01 ) (0.02 ) Diluted net earnings per share $ 1.36 $ 1.14 $ 1.31 $ 1.52 $ 5.33 Dividends declared per common share $ 0.80 $ 0.80 $ 0.80 $ 0.84 $ 3.24 Market price (NYSE) High $ 140.47 $ 124.70 139.30 $ 141.76 $ 141.76 Low 121.75 111.24 118.41 127.62 111.24 Year-end 133.24 Fiscal year ended June 30, 2016 Net sales $ 1,390 $ 1,345 $ 1,426 $ 1,600 $ 5,761 Cost of products sold 765 745 780 873 3,163 Earnings from continuing operations 173 151 159 165 648 Losses from discontinued operations, net of tax (1 ) (2 ) 3 — — Net earnings 172 149 162 165 648 Per common share: Basic Continuing operations $ 1.34 $ 1.16 $ 1.23 $ 1.28 $ 5.01 Discontinued operations (0.01 ) (0.01 ) 0.02 — — Basic net earnings per share $ 1.33 $ 1.15 $ 1.25 $ 1.28 $ 5.01 Diluted Continuing operations $ 1.32 $ 1.14 $ 1.21 $ 1.26 $ 4.92 Discontinued operations (0.01 ) (0.01 ) 0.02 — — Diluted net earnings per share $ 1.31 $ 1.13 $ 1.23 $ 1.26 $ 4.92 Dividends declared per common share $ 0.77 $ 0.77 $ 0.77 $ 0.80 $ 3.11 Market price (NYSE) High $ 119.75 $ 131.78 $ 132.19 $ 138.41 $ 138.41 Low 104.26 114.06 122.40 119.23 104.26 Year-end 138.39 FIVE-YEAR FINANCIAL SUMMARY The Clorox Company Years ended June 30 Dollars in millions, except per share data 2017 2016 2015 2014 2013 OPERATIONS Net sales $ 5,973 $ 5,761 $ 5,655 $ 5,514 $ 5,533 Gross profit 2,671 2,598 2,465 2,356 2,391 Earnings from continuing operations $ 703 $ 648 $ 606 $ 579 $ 573 (Losses) earnings from discontinued operations, net of tax (2 ) — (26 ) (21 ) (1 ) Net earnings $ 701 $ 648 $ 580 $ 558 $ 572 COMMON STOCK Earnings per share Continuing operations Basic $ 5.45 $ 5.01 $ 4.65 $ 4.47 $ 4.37 Diluted 5.35 4.92 4.57 4.39 4.31 Dividends declared per share 3.24 3.11 2.99 2.87 2.63 As of June 30 Dollars in millions 2017 2016 2015 2014 2013 OTHER DATA Total assets (1) $ 4,573 $ 4,510 $ 4,154 $ 4,251 $ 4,302 Long-term debt (1) 1,391 1,789 1,786 1,588 2,161 (1) Prior year amounts have been retrospectively adjusted to conform to the current year presentation of debt issuance costs required by ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs." See Note 1 for details. |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 |
Accounting Policies [Abstract] | ||
Restricted cash and cash equivalents | $ 2 | $ 4 |
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, 2017 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Land Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Land Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Capitalized software costs [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Capitalized software costs [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Additional Information) (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017USD ($)instrument | Jun. 30, 2016USD ($)instrument | Jun. 30, 2015USD ($)instrument | |
Performance period for performance awards | 3 years | ||
Minimum percentage for calculating the amortization of actuarial gains and losses under the corridor approach | 5.00% | ||
Provision for doubtful accounts | $ 3 | $ 5 | |
Nontrade receivables, current | 3 | 9 | |
Packaging development and design costs | $ 13 | $ 11 | $ 11 |
Number of hedging instruments designated as fair value hedges | instrument | 0 | 0 | 0 |
Excess tax benefits | $ 22 | ||
Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member] | |||
Debt issuance costs, net | $ 8 | ||
Other Noncurrent Assets [Member] | Accounting Standards Update 2015-03 [Member] | |||
Debt issuance costs, net | $ (8) |
DISCONTINUED OPERATIONS DISCONT
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Narrative) (Details) - Clorox Venezuela [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | 39 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Minimum of percentage of products required to be sold at frozen price | 66.67% | ||||
Recognition of deferred foreign currency translation loss | $ 30 | $ 0 | $ 0 | $ 30 | |
Net asset position, denominated in Venezuelan Bolivars | 0 | 0 | |||
Net asset position, denominated in US Dollars | 0 | 0 | |||
Corporate Segment [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Deferred tax asset, discontinued operations | $ 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, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | 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 earnings (losses) from Clorox Venezuela, net of tax | $ (1) | $ 0 | $ (1) | $ 0 | $ 0 | $ 3 | $ (2) | $ (1) | $ (2) | $ 0 | $ (26) | $ (21) | $ (1) |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||||||||
Gross unrecognized tax benefits recognized upon the expiration of the applicable statute of limitations | 1 | 4 | 34 | ||||||||||
Clorox Venezuela [Member] | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Net sales | 0 | 0 | 11 | ||||||||||
Operating losses from Clorox Venezuela before income taxes | 0 | 0 | (6) | ||||||||||
Exit costs and other related expenses for Clorox Venezuela | (4) | (2) | (78) | ||||||||||
Total earnings (losses) from Clorox Venezuela before income taxes | (4) | (2) | (84) | ||||||||||
Income tax benefit attributable to Clorox Venezuela | 2 | 2 | 29 | ||||||||||
Total earnings (losses) from Clorox Venezuela, net of tax | (2) | 0 | (55) | ||||||||||
Other Discontinued Operations [Member] | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Total earnings (losses) from Clorox Venezuela, net of tax | $ 0 | $ 0 | 29 | ||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||||||||
Gross unrecognized tax benefits recognized upon the expiration of the applicable statute of limitations | $ 32 |
DISCONTINUED OPERATIONS (Summ55
DISCONTINUED OPERATIONS (Summary of Operating Losses, Asset Charges and Other Costs) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2014 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Other exit and business termination costs: | ||||||||||||||
Total earnings (losses) from Clorox Venezuela, net of tax | $ (1) | $ 0 | $ (1) | $ 0 | $ 0 | $ 3 | $ (2) | $ (1) | $ (2) | $ 0 | $ (26) | $ (21) | $ (1) | |
Clorox Venezuela [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Operating losses from Clorox Venezuela before income taxes | 0 | 0 | (6) | |||||||||||
Net asset charges: | ||||||||||||||
Inventories | 0 | 0 | (11) | |||||||||||
Property, plant and equipment | 0 | 0 | (16) | |||||||||||
Trademark and other intangible assets | 0 | 0 | (6) | |||||||||||
Other assets | 0 | 0 | (2) | |||||||||||
Other exit and business termination costs: | ||||||||||||||
Severance | 0 | 0 | (3) | |||||||||||
Recognition of deferred foreign currency translation loss | $ (30) | 0 | 0 | (30) | ||||||||||
Other | (4) | (2) | (10) | |||||||||||
Total earnings (losses) from Clorox Venezuela before income taxes | (4) | (2) | (84) | |||||||||||
Income tax benefit attributable to Clorox Venezuela | 2 | 2 | 29 | |||||||||||
Total earnings (losses) from Clorox Venezuela, net of tax | (2) | 0 | (55) | |||||||||||
Other Discontinued Operations [Member] | ||||||||||||||
Other exit and business termination costs: | ||||||||||||||
Total earnings (losses) from Clorox Venezuela, net of tax | $ 0 | $ 0 | $ 29 |
BUSINESSES ACQUIRED (Details)
BUSINESSES ACQUIRED (Details) - USD ($) $ in Millions | May 02, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Business Acquisition [Line Items] | ||||||||||||||
Amount paid for acquisition | $ 0 | $ 290 | $ 0 | |||||||||||
Net sales | $ 1,647 | $ 1,477 | $ 1,406 | $ 1,443 | $ 1,600 | $ 1,426 | $ 1,345 | $ 1,390 | 5,973 | 5,761 | 5,655 | $ 5,514 | $ 5,533 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||||||||
Goodwill | 1,196 | $ 1,197 | 1,196 | 1,197 | $ 1,067 | |||||||||
RenewLife [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of business acquired | 100.00% | |||||||||||||
Amount paid for acquisition | $ 290 | |||||||||||||
Net sales | 130 | $ 21 | ||||||||||||
The weighted-average estimated useful life of intangible assets subject to amortization | 15 years | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||||||||
Goodwill | 137 | 137 | ||||||||||||
Property, plant and equipment | 3 | 3 | ||||||||||||
Working capital, net | 40 | 40 | ||||||||||||
Deferred income taxes | (60) | (60) | ||||||||||||
Purchase Price | 290 | 290 | ||||||||||||
RenewLife [Member] | Customer Relationships [Member] | ||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||||||||
Other intangible assets | 36 | 36 | ||||||||||||
RenewLife [Member] | Trademarks [Member] | ||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||||||||
Other intangible assets | $ 134 | $ 134 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 363 | $ 361 |
Raw materials and packaging | 119 | 111 |
Work in process | 3 | 3 |
LIFO allowances | (26) | (32) |
Total | $ 459 | $ 443 |
Percentage of LIFO inventory | 37.00% | 38.00% |
PROPERTY, PLANT AND EQUIPMENT58
PROPERTY, PLANT AND EQUIPMENT, NET (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Jun. 30, 2017USD ($)leased_property | Jun. 30, 2016USD ($)leased_property | Jun. 30, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | $ 2,932 | $ 2,817 | ||
Less: Accumulated depreciation and amortization | (2,001) | (1,911) | ||
Property, plant and equipment, net | 931 | 906 | ||
Depreciation and amortization | 163 | 165 | $ 169 | |
Asset impairment charges | 23 | 10 | 3 | |
Non-cash capital expenditures | 2 | 10 | 18 | |
Machinery and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 1,696 | 1,607 | ||
Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 524 | 524 | ||
Capitalized software costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 371 | 368 | ||
Amortization | 15 | 16 | 19 | |
Land and Land Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 116 | 118 | ||
Asset retirement obligation | $ 3 | $ 3 | ||
Number of leased properties | leased_property | 2 | 2 | ||
Asset retirement obligation, liabilities incurred | $ 0 | $ 1 | ||
Construction in Progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 130 | 112 | ||
Computer Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 95 | 88 | ||
Assets Held under Capital Leases [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment | 13 | 12 | ||
Less: Accumulated depreciation and amortization | (8) | (3) | ||
Aplicare Business [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | $ 21 | |||
Property, Plant and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 153 | $ 157 | $ 157 |
GOODWILL, TRADEMARKS AND OTHE59
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,197 | $ 1,067 |
Acquisition | 137 | |
Effect of foreign currency translation | (1) | (7) |
Goodwill, ending balance | 1,196 | 1,197 |
Cleaning [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 323 | 323 |
Acquisition | 0 | |
Effect of foreign currency translation | 0 | 0 |
Goodwill, ending balance | 323 | 323 |
Household [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 207 | 85 |
Acquisition | 122 | |
Effect of foreign currency translation | 0 | 0 |
Goodwill, ending balance | 207 | 207 |
Lifestyle [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 244 | 244 |
Acquisition | 0 | |
Effect of foreign currency translation | 0 | 0 |
Goodwill, ending balance | 244 | 244 |
International [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 423 | 415 |
Acquisition | 15 | |
Effect of foreign currency translation | (1) | (7) |
Goodwill, ending balance | $ 422 | $ 423 |
GOODWILL, TRADEMARKS AND OTHE60
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Schedule of Intangible Assets, Excluding Goodwill) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,035 | $ 1,037 |
Accumulated amortization | 313 | 302 |
Net carrying amount | 722 | 735 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 32 | 32 |
Accumulated amortization | 23 | 22 |
Net carrying amount | 9 | 10 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 358 | 358 |
Accumulated amortization | 290 | 280 |
Net carrying amount | 68 | 78 |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks not subject to amortization | $ 645 | $ 647 |
GOODWILL, TRADEMARKS AND OTHE61
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 10,000,000 | $ 8,000,000 | $ 12,000,000 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,018 | 9,000,000 | ||
2,019 | 9,000,000 | ||
2,020 | 9,000,000 | ||
2,021 | 8,000,000 | ||
2,022 | $ 7,000,000 | ||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of intangible assets | 9,000,000 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 2 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 30 years | ||
Trademarks [Member] | Aplicare Business [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of intangible assets | $ 6,000,000 |
ACCOUNTS PAYABLE AND ACCRUED 62
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accounts payable | $ 501 | $ 490 |
Compensation and employee benefit costs | 162 | 192 |
Trade and sales promotion | 117 | 127 |
Dividends | 116 | 108 |
Other | 109 | 118 |
Total | $ 1,005 | $ 1,035 |
DEBT (Notes and Loans Payable)
DEBT (Notes and Loans Payable) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 |
Short-term Debt [Line Items] | ||
Notes and loans payable | $ 404 | $ 523 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Notes and loans payable | 403 | 522 |
Foreign Borrowings [Member] | ||
Short-term Debt [Line Items] | ||
Notes and loans payable | $ 1 | $ 1 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2017 | Nov. 30, 2015 | Jan. 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2017 | Feb. 08, 2017 | Dec. 31, 2014 | Oct. 31, 2014 | |
Long-term and Short-term Debt [Line Items] | ||||||||||
Weighted average interest rate on notes and loans payable | 1.21% | 1.10% | 2.05% | |||||||
Weighted average interest rates on long-term debt, including the effect of interest rate swaps | 4.41% | 4.37% | 4.44% | |||||||
Weighted average interest rate on long-term debt | 4.41% | 4.41% | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||
2,018 | $ 400 | |||||||||
2,019 | 0 | |||||||||
2,020 | 0 | |||||||||
2,021 | 0 | |||||||||
2,022 | 300 | |||||||||
Thereafter | 1,100 | |||||||||
Repayments on senior notes | 0 | $ 300 | $ 575 | |||||||
Line of credit facility, borrowing capacity | $ 1,129 | $ 1,128 | ||||||||
Commercial Paper [Member] | ||||||||||
Long-term and Short-term Debt [Line Items] | ||||||||||
Weighted average interest rate on commercial paper | 1.33% | 0.82% | ||||||||
Revolving Line of Credit [Member] | ||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||
Line of credit facility, amount outstanding | $ 0 | |||||||||
Foreign and Other Credit Lines [Member] | ||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||
Line of credit facility, borrowing capacity | $ 29 | 28 | ||||||||
Line of credit facility, amount outstanding | 5 | 5 | ||||||||
Line of credit facility, remaining borrowing capacity | 24 | 23 | ||||||||
Senior notes with an annual fixed interest rate of 3.55% [Member] | ||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||
Repayments on senior notes | $ 300 | |||||||||
Annual fixed interest rate | 3.55% | |||||||||
Senior notes with an annual fixed interest rate of 5.00% [Member] | ||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||
Repayments on senior notes | $ 575 | |||||||||
Annual fixed interest rate | 5.00% | |||||||||
Senior notes with an annual fixed interest rate of 3.50% [Member] | ||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||
Annual fixed interest rate | 3.50% | |||||||||
Face value | $ 500 | |||||||||
Effective interest rate | 4.10% | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||
Line of credit facility, borrowing capacity | $ 1,100 | $ 1,100 | $ 0 | $ 0 | ||||||
Termination fees and penalties incurred from debt modification | $ 0 | |||||||||
Line of credit facility, amount outstanding | $ 0 | |||||||||
Scenario, Forecast [Member] | Senior notes with an annual fixed interest rate of 5.95% [Member] | ||||||||||
Long-term and Short-term Debt [Line Items] | ||||||||||
Weighted average interest rate on long-term debt | 5.95% | |||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||
Repayments on senior notes | $ 400 |
DEBT (Long-term Debt, Net of Un
DEBT (Long-term Debt, Net of Unamortized Discounts or Premiums) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Debt Instrument [Line Items] | |||||
Weighted average interest rate on long-term debt | 4.41% | 4.41% | |||
Long-term debt | $ 1,791 | $ 1,789 | |||
Less: Current maturities of long-term debt | (400) | 0 | |||
Long-term debt, noncurrent | $ 1,391 | 1,789 | $ 1,786 | $ 1,588 | $ 2,161 |
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% | ||||
Face value | $ 400 | ||||
Long-term debt | $ 400 | 400 | |||
Senior Unsecured Long-Term Notes and Debentures; 3.80%, $300 Due November 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate on long-term debt | 3.80% | ||||
Face value | $ 300 | ||||
Long-term debt | $ 298 | 297 | |||
Senior Unsecured Long-Term Notes and Debentures; 3.05%, $600 Due November 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate on long-term debt | 3.05% | ||||
Face value | $ 600 | ||||
Long-term debt | $ 596 | 596 | |||
Senior Unsecured Long-Term Notes and Debentures; 3.50%, $500 Due December 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate on long-term debt | 3.50% | ||||
Face value | $ 500 | ||||
Long-term debt | $ 497 | $ 496 |
DEBT (Borrowing Capacity Under
DEBT (Borrowing Capacity Under Other Financing Arrangements) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Feb. 08, 2017 | Jun. 30, 2016 | Oct. 31, 2014 |
Line of Credit Facility [Line Items] | ||||
Line of credit facility, borrowing capacity | $ 1,129 | $ 1,128 | ||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, borrowing capacity | 1,100 | $ 0 | 1,100 | $ 0 |
Foreign And Other Credit Line [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, borrowing capacity | $ 29 | $ 28 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Jun. 30, 2017 | Jun. 30, 2016 | |
Class of Warrant or Right [Line Items] | |||
Venture agreement terminal obligation, net | $ 317 | $ 302 | |
Employee benefit obligations | 298 | 335 | |
Taxes | 42 | 40 | |
Other | 113 | 107 | |
Total | $ 770 | 784 | |
Venture agreement renewal option | 10 years | ||
Venture agreement terminal obligation | $ 458 | ||
Sale leaseback transaction, net proceeds, investing activities | $ 108 | ||
Lease term | 15 years | ||
Deferred gain on sale-lease back, noncurrent portion | $ 33 | $ 36 | |
Glad Business [Member] | |||
Class of Warrant or Right [Line Items] | |||
Percentage of ownership by venture partner | 20.00% | 20.00% |
FINANCIAL INSTRUMENTS AND FAI68
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||||
Maximum contract duration | 2 years | |||
Settlement of interest rate forward contracts | $ 0 | $ 0 | $ 25 | |
Cash flow hedge gain (loss) to be reclassified within twelve months | (8) | |||
Derivative instruments subject to contractually defined counterparty liability position limits | 1 | 4 | ||
Senior notes with an annual fixed interest rate of 3.50% [Member] | ||||
Derivative [Line Items] | ||||
Face value | $ 500 | |||
Commodity Contract [Member] | ||||
Derivative [Line Items] | ||||
Cash margin balances amount | $ 1 | 1 | ||
Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Amortization period of settlement payment | 10 years | |||
Total Commodity Purchase Derivative Contracts [Member] | ||||
Derivative [Line Items] | ||||
Maximum duration, commodity contracts | 2 years | |||
Notional amounts | $ 26 | 30 | ||
Jet Fuel Swaps [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 14 | 16 | ||
Soybean Oil Futures [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 12 | 14 | ||
Purchases of Inventory [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | 49 | $ 84 | ||
Other Assets [Member] | Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Trust Assets for nonqualified deferred compensation plans [Member] | ||||
Derivative [Line Items] | ||||
Increase in deferred compensation plan | $ 20 |
FINANCIAL INSTRUMENTS AND FAI69
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, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in Other comprehensive income | $ (4) | $ (7) | $ (18) |
Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings | (11) | (18) | (7) |
Commodity Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in Other comprehensive income | (3) | (4) | (13) |
Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings | (2) | (13) | (5) |
Foreign Exchange Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in Other comprehensive income | (1) | (3) | 7 |
Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings | (3) | 1 | 3 |
Interest Rate Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in Other comprehensive income | 0 | 0 | (12) |
Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings | $ (6) | $ (6) | $ (5) |
FINANCIAL INSTRUMENTS AND FAI70
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | $ 418 | $ 401 | $ 382 | $ 329 | |
Prepaid expenses and other current assets | 72 | 72 | |||
Other assets | 210 | 187 | |||
Total assets | 4,573 | 4,510 | $ 4,154 | $ 4,251 | $ 4,302 |
Notes and loans payable | 404 | 523 | |||
Derivative liabilities | 1,005 | 1,035 | |||
Current maturities of long-term debt and Long-term debt | 1,791 | 1,789 | |||
Total liabilities | 4,031 | 4,213 | |||
Reported Value Measurement [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Total assets | 409 | 368 | |||
Total liabilities | 2,197 | 2,317 | |||
Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Total assets in the fair value hierarchy | 409 | 368 | |||
Total liabilities | 2,261 | 2,450 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | Money Market Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 221 | 234 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | Money Market Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 221 | 234 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Bank Time Deposits [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 115 | 79 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Bank Time Deposits [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Cash and cash equivalents | 115 | 79 | |||
Prepaid Expenses and Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | Commodity Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0 | 1 | |||
Prepaid Expenses and Other Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | Commodity Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0 | 1 | |||
Prepaid Expenses and Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Commodity Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 1 | 0 | |||
Prepaid Expenses and Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Foreign Exchange Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0 | 1 | |||
Prepaid Expenses and Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Commodity Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 1 | 0 | |||
Prepaid Expenses and Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Foreign Exchange Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0 | 1 | |||
Other Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Commodity Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Other assets | 0 | 1 | |||
Other Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Commodity Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Prepaid expenses and other current assets | 0 | 1 | |||
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Commodity Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative liabilities | 1 | 1 | |||
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Foreign Exchange Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative liabilities | 1 | 4 | |||
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Commodity Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative liabilities | 1 | 1 | |||
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Foreign Exchange Contract [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Derivative liabilities | 1 | 4 | |||
CurrentMaturitiesOfLongTermDebtAndLongTermDebtMember | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Long-term Debt [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Current maturities of long-term debt and Long-term debt | 1,791 | 1,789 | |||
CurrentMaturitiesOfLongTermDebtAndLongTermDebtMember | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Long-term Debt [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Current maturities of long-term debt and Long-term debt | 1,855 | 1,922 | |||
Trust Assets for nonqualified deferred compensation plans [Member] | Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Trust assets for nonqualified deferred compensation plans | 72 | 52 | |||
Trust Assets for nonqualified deferred compensation plans [Member] | Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Trust assets for nonqualified deferred compensation plans | 72 | 52 | |||
Notes And Loans Payable [Member] | Notes Payable, Other Payables [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Notes and loans payable | 404 | 523 | |||
Notes And Loans Payable [Member] | Notes Payable, Other Payables [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Notes and loans payable | $ 404 | $ 523 |
OTHER CONTINGENCIES AND GUARA71
OTHER CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Loss Contingencies [Line Items] | |||||||||||||
Liability for aggregate future remediation costs | $ 28 | $ 14 | $ 28 | $ 14 | |||||||||
Letter of credit | 10 | 10 | 10 | 10 | |||||||||
Letter of credit, amount outstanding | 0 | 0 | 0 | 0 | |||||||||
Asset impairment charges | 23 | 10 | $ 3 | ||||||||||
Net sales | 1,647 | $ 1,477 | $ 1,406 | $ 1,443 | 1,600 | $ 1,426 | $ 1,345 | $ 1,390 | $ 5,973 | 5,761 | $ 5,655 | $ 5,514 | $ 5,533 |
Dickinson County, Michigan Matter [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Liability for aggregate future remediation costs | 11 | 11 | |||||||||||
Remediation period | 30 years | ||||||||||||
Percentage of liability for aggregate remediation and associated costs, other than legal fees | 24.30% | ||||||||||||
Alameda County, California Matter [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Liability for aggregate future remediation costs | 14 | $ 1 | $ 14 | $ 1 | |||||||||
Remediation period | 30 years | ||||||||||||
Maximum undiscounted costs | 28 | $ 28 | |||||||||||
Aplicare Business [Member] | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Asset impairment charges | $ 21 | ||||||||||||
Aplicare business, as a percent of net sales | 1.00% | ||||||||||||
Number of years process has been used | 30 years | ||||||||||||
Net sales | $ 46 | ||||||||||||
Net assets | $ 15 | $ 15 |
LEASES AND OTHER COMMITMENTS (D
LEASES AND OTHER COMMITMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
LEASES AND OTHER COMMITMENTS [Abstract] | |||
Operating lease, rent expense | $ 84 | $ 77 | $ 76 |
Operating leases | |||
2,018 | 52 | ||
2,019 | 46 | ||
2,020 | 41 | ||
2,021 | 37 | ||
2,022 | 32 | ||
Thereafter | 137 | ||
Total | 345 | ||
Capital leases | |||
2,018 | 2 | ||
2,019 | 1 | ||
2,020 | 0 | ||
2,021 | 0 | ||
2,022 | 0 | ||
Thereafter | 0 | ||
Total | 3 | ||
Purchase Obligations | |||
2,018 | 158 | ||
2,019 | 70 | ||
2,020 | 36 | ||
2,021 | 20 | ||
2,022 | 13 | ||
Thereafter | 21 | ||
Total | $ 318 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($)shares | |
Intercompany Foreign Currency Balance [Line Items] | |||
Number of repurchase programs | 2 | 2 | |
Long term intercompany loans [Member] | |||
Intercompany Foreign Currency Balance [Line Items] | |||
Adjustment for long-term intercompany transactions, gross of tax | $ 2 | $ 14 | $ 9 |
Open-market purchase programs [Member] | |||
Intercompany Foreign Currency Balance [Line Items] | |||
Authorized repurchase amount | 750 | 750 | |
Remaining authorized repurchase amount | $ 750 | $ 750 | |
Stock repurchased during period, shares (in shares) | shares | 0 | 0 | 0 |
STOCKHOLDERS' EQUITY (Share Rep
STOCKHOLDERS' EQUITY (Share Repurchase Programs) (Details) - Evergreen Program [Member] - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share Repurchase Programs [Line Items] | |||
Stock repurchased during period, value | $ 189 | $ 254 | $ 434 |
Stock repurchased during period, shares (in shares) | 1,505 | 2,151 | 4,016 |
STOCKHOLDERS' EQUITY (Common St
STOCKHOLDERS' EQUITY (Common Stock Dividends) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stockholders' Equity Note [Abstract] | |||||||||||||
Dividends per share declared (in dollars per share) | $ 0.84 | $ 0.80 | $ 0.80 | $ 0.80 | $ 0.80 | $ 0.77 | $ 0.77 | $ 0.77 | $ 3.24 | $ 3.11 | $ 2.99 | $ 2.87 | $ 2.63 |
Dividends per share paid (in dollars per share) | $ 3.20 | $ 3.08 | $ 2.96 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Changes in Accumulated Other Comprehensive Net (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (353) | $ (300) | $ (246) |
Other comprehensive income (loss) before reclassifications | (3) | (43) | (92) |
Amounts reclassified from Accumulated other comprehensive net losses | 0 | 0 | 0 |
Recognition of deferred foreign currency translation loss | (30) | ||
Income tax benefit (expense) | 0 | (10) | 8 |
Net current period other comprehensive income (loss) | (3) | (53) | (54) |
Ending balance | (356) | (353) | (300) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (44) | (53) | (39) |
Other comprehensive income (loss) before reclassifications | (4) | (7) | (18) |
Amounts reclassified from Accumulated other comprehensive net losses | 11 | 18 | 7 |
Recognition of deferred foreign currency translation loss | 0 | ||
Income tax benefit (expense) | 0 | (2) | (3) |
Net current period other comprehensive income (loss) | 7 | 9 | (14) |
Ending balance | (37) | (44) | (53) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (173) | (149) | (132) |
Other comprehensive income (loss) before reclassifications | 27 | (38) | (29) |
Amounts reclassified from Accumulated other comprehensive net losses | 9 | 0 | 0 |
Recognition of deferred foreign currency translation loss | 0 | ||
Income tax benefit (expense) | (13) | 14 | 12 |
Net current period other comprehensive income (loss) | 23 | (24) | (17) |
Ending balance | (150) | (173) | (149) |
AOCI Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (570) | (502) | (417) |
Other comprehensive income (loss) before reclassifications | 20 | (88) | (139) |
Amounts reclassified from Accumulated other comprehensive net losses | 20 | 18 | 7 |
Recognition of deferred foreign currency translation loss | (30) | ||
Income tax benefit (expense) | (13) | 2 | 17 |
Net current period other comprehensive income (loss) | 27 | (68) | (85) |
Ending balance | $ (543) | $ (570) | $ (502) |
NET EARNINGS PER SHARE (EPS) (D
NET EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |||
Weighted average shares outstanding - basic (in shares) | 128,953 | 129,472 | 130,310 |
Dilutive effect of stock options and other (in shares) | 2,613 | 2,245 | 2,466 |
Weighted average shares outstanding - diluted (in shares) | 131,566 | 131,717 | 132,776 |
Antidilutive stock options and other (in shares) | 11 | 42 | 23 |
STOCK-BASED COMPENSATION PLAN78
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2012 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of additional shares authorized (in shares) | 3,000,000 | |||
Number of shares authorized (in shares) | 7,000,000 | |||
Number of shares available for grant (in shares) | 7,000,000 | |||
Cash received from stock options exercised | $ 81 | $ 180 | $ 230 | |
Deferred Stock Units for Nonemployee Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred stock units for nonemployee directors granted | 14,000 | |||
Deferred stock units for nonemployee directors reinvested dividends | 6,000 | |||
Deferred stock units for nonemployee directors distributed | 59,000 | |||
Deferred stock units for nonemployee directors granted weighted average fair value on grant date | $ 121.37 | |||
Deferred stock units for nonemployee directors reinvested weighted average fair value on grant date | 125.68 | |||
Deferred stock units for nonemployee directors distributed weighted average fair value on grant date | $ 77.15 | |||
Deferred stock units for nonemployee directors outstanding | 205,000 | |||
Deferred stock units for nonemployee directors outstanding weighted average fair value on grant date | $ 74.28 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value per share (in dollars per share) | $ 13.75 | $ 13.21 | $ 9.65 | |
Total intrinsic value of options exercised | $ 65 | $ 142 | $ 140 | |
Award vesting period | 4 years | |||
Expiration period | 10 years | |||
Compensation cost not yet recognized | $ 17 | |||
Compensation costs not yet recognized, period for recognition | 1 year | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost not yet recognized | $ 1 | |||
Compensation costs not yet recognized, period for recognition | 1 year | |||
Granted (in dollars per share) | $ 131.67 | $ 128.91 | $ 95.67 | |
Nonvested awards outstanding (in shares) | 18,000 | 13,000 | ||
Weighted-average grant date fair value per share of nonvested awards (in dollars per share) | $ 120 | $ 108 | ||
Awards vested (in shares) | 4,000 | |||
Fair value of shares vested | $ 1 | $ 1 | $ 1 | |
Restricted Stock [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Restricted Stock [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost not yet recognized | $ 31 | |||
Compensation costs not yet recognized, period for recognition | 1 year | |||
Granted (in dollars per share) | $ 122.73 | $ 92.35 | $ 89.75 | |
Nonvested awards outstanding (in shares) | 738,000 | 794,000 | ||
Weighted-average grant date fair value per share of nonvested awards (in dollars per share) | $ 108 | $ 95.18 | ||
Awards vested (in shares) | 0 | |||
Fair value of shares vested | $ 0 | $ 26 | $ 24 |
STOCK-BASED COMPENSATION PLAN79
STOCK-BASED COMPENSATION PLANS (Compensation Cost and Related Income Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 51 | $ 45 | $ 32 |
Related income tax benefit | 19 | 17 | 12 |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 7 | 6 | 4 |
Selling and Marketing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 40 | 35 | 25 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 4 | $ 4 | $ 3 |
STOCK-BASED COMPENSATION PLAN80
STOCK-BASED COMPENSATION PLANS (Assumptions Utilized in the Valuation in Calculating the Compensation Expense for Stock Options Granted) (Details) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |||
Expected life, minimum | 5 years 7 months 6 days | ||
Expected life, maximum | 5 years 9 months 18 days | ||
Expected life | 5 years 6 months | 5 years 7 months 6 days | |
Weighted average expected life | 5 years 6 months | 5 years 7 months 6 days | 5 years 8 months 12 days |
Expected volatility, minimum | 16.20% | 16.40% | 16.30% |
Expected volatility, maximum | 16.90% | 17.30% | 18.60% |
Weighted-average volatility | 16.90% | 17.20% | 16.60% |
Risk-free interest rate, minimum | 1.30% | 1.30% | 1.40% |
Risk-free interest rate, maximum | 2.20% | 1.70% | 2.00% |
Weighted-average risk-free interest rate | 1.30% | 1.70% | 1.90% |
Dividend yield, minimum | 2.40% | 2.50% | 2.80% |
Dividend yield, maximum | 2.80% | 2.80% | 3.40% |
Weighted-average dividend yield | 2.60% | 2.80% | 3.30% |
STOCK-BASED COMPENSATION PLAN81
STOCK-BASED COMPENSATION PLANS (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning balance (in shares) | 6,827 | |
Granted (in shares) | 1,318 | |
Exercised (in shares) | (1,115) | |
Canceled (in shares) | (123) | |
Outstanding, ending balance (in shares) | 6,907 | 6,827 |
Options vested (in shares) | 3,835 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding, beginning balance (in dollars per share) | $ 85 | |
Granted (in dollars per share) | 123 | |
Exercised (in dollars per share) | 75 | |
Canceled (in dollars per share) | 112 | |
Outstanding, ending balance (in dollars per share) | 93 | $ 85 |
Options vested (in dollars per share) | $ 80 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Average remaining contractual life, options outstanding | 6 years | 7 years |
Average remaining contractual life, options vested | 5 years | |
Options outstanding | $ 277 | $ 366 |
Options vested | $ 204 |
STOCK-BASED COMPENSATION PLAN82
STOCK-BASED COMPENSATION PLANS (Summary of Restricted Stock Award Activity) (Details) - Restricted Stock [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Number of Shares | |||
Outstanding, beginning balance (in shares) | 13 | ||
Granted (in shares) | 10 | ||
Vested (in shares) | (4) | ||
Forfeited (in shares) | (1) | ||
Outstanding, ending balance (in shares) | 18 | 13 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning balance (in dollars per share) | $ 108 | ||
Granted (in dollars per share) | 131.67 | $ 128.91 | $ 95.67 |
Vested (in dollars per share) | 110 | ||
Forfeited (in dollars per share) | 96 | ||
Outstanding, ending balance (in dollars per share) | $ 120 | $ 108 |
STOCK-BASED COMPENSATION PLAN83
STOCK-BASED COMPENSATION PLANS (Summary of Performance Stock Award Activity) (Details) - Performance Shares [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Number of Shares | |||
Outstanding, beginning balance (in shares) | 952 | ||
Granted (in shares) | 253 | ||
Distributed (in shares) | (35) | ||
Forfeited (in shares) | (308) | ||
Outstanding, ending balance (in shares) | 862 | 952 | |
Vested and deferred (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning balance (in dollars per share) | $ 90 | ||
Granted (in dollars per share) | 122.73 | $ 92.35 | $ 89.75 |
Distributed (in dollars per share) | 59 | ||
Forfeited (in dollars per share) | 87 | ||
Outstanding, ending balance (in dollars per share) | 102 | $ 90 | |
Vested and deferred (in dollars per share) | $ 0 |
OTHER (INCOME) EXPENSE, NET (De
OTHER (INCOME) EXPENSE, NET (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | ||||
Income from equity investees | $ (19,000,000) | $ (15,000,000) | $ (14,000,000) | |
Gain on sale of assets and investments, net | (11,000,000) | (11,000,000) | (13,000,000) | |
Interest income | (4,000,000) | (5,000,000) | (4,000,000) | |
Asset impairment charges | 23,000,000 | 10,000,000 | 3,000,000 | |
Amortization of trademarks and other intangible assets | 10,000,000 | 8,000,000 | 8,000,000 | |
Foreign exchange transaction losses, net | (1,000,000) | 1,000,000 | 9,000,000 | |
Other | 8,000,000 | 5,000,000 | (2,000,000) | |
Other (income) expense, net | 6,000,000 | (7,000,000) | (13,000,000) | |
Cash proceeds from sale of property, plant, and equipment | 23,000,000 | 20,000,000 | 15,000,000 | |
Gain on sale of assets and investments | 10,000,000 | 11,000,000 | 13,000,000 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Asset impairment charges | 23,000,000 | 10,000,000 | $ 3,000,000 | |
Impairment of intangible assets | 9,000,000 | |||
Aplicare Business [Member] | ||||
Other Income and Expenses [Abstract] | ||||
Asset impairment charges | $ 21,000,000 | |||
Indefinite-lived Intangible Assets [Line Items] | ||||
Asset impairment charges | $ 21,000,000 | |||
Aplicare Business [Member] | Trademarks [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 6,000,000 | |||
Alameda County, California Matter [Member] | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Environmental costs recognized | $ 14,000,000 |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Current | |||
Federal | $ 291 | $ 254 | $ 265 |
State | 36 | 31 | 28 |
Foreign | 38 | 45 | 38 |
Total current | 365 | 330 | 331 |
Deferred | |||
Federal | (29) | 11 | (13) |
State | (2) | 1 | (1) |
Foreign | (4) | (7) | (2) |
Total deferred | (35) | 5 | (16) |
Total | 330 | 335 | 315 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
United States | 927 | 900 | 829 |
Foreign | 106 | 83 | 92 |
Earnings from continuing operations before income taxes | $ 1,033 | $ 983 | $ 921 |
INCOME TAXES (Effective Income
INCOME TAXES (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 35.00% | 35.00% | 35.00% |
State taxes (net of federal tax benefits) | 2.20% | 2.10% | 2.10% |
Tax differential on foreign earnings | (0.60%) | 0.50% | (0.30%) |
Federal domestic manufacturing deduction | (2.60%) | (2.40%) | (2.10%) |
Change in valuation allowance | 0.20% | 0.50% | 0.60% |
Federal excess tax benefits | (2.00%) | (0.00%) | (0.00%) |
Other differences | (0.30%) | (1.60%) | (1.10%) |
Effective tax rate | 31.90% | 34.10% | 34.20% |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Undistributed earnings of foreign subsidiaries | $ 229 | ||
Federal income tax liability on unremitted earnings | 60 | ||
Excess tax benefits | 22 | ||
Income tax effects allocated directly to equity, employee stock options | $ 51 | $ 42 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 3 | 3 | |
Unrecognized tax benefits, income tax penalties and interest expense | 1 | 1 | (1) |
Unrecognized tax benefits that would impact effective tax rate | 28 | 27 | 27 |
Gross unrecognized tax benefits recognized upon the expiration of the applicable statute of limitations | 1 | $ 4 | 34 |
Other Discontinued Operations [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Gross unrecognized tax benefits recognized upon the expiration of the applicable statute of limitations | $ 32 | ||
Foreign Tax Credit Carryforward [Member] | Domestic Tax Authority [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 26 | ||
Foreign Tax Credit Carryforward [Member] | Foreign Tax Authority [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 20 | ||
Not Subject to Expiration [Member] | Foreign Tax Authority [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 13 | ||
Not Subject to Expiration [Member] | Foreign Tax Credit Carryforward [Member] | Foreign Tax Authority [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 1 | ||
Subject to Expiration [Member] | Foreign Tax Authority [Member] | |||
Tax Credit and Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 18 |
INCOME TAXES (Components of Net
INCOME TAXES (Components of Net Deferred Tax Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred tax assets | |||
Compensation and benefit programs | $ 182 | $ 193 | |
Basis difference related to Venture Agreement | 30 | 30 | |
Accruals and reserves | 41 | 34 | |
Inventory costs | 25 | 21 | |
Net operating loss and tax credit carryforwards | 52 | 48 | |
Other | 54 | 54 | |
Subtotal | 384 | 380 | |
Valuation allowance | (40) | (37) | $ (34) |
Total deferred tax assets | 344 | 343 | |
Components of Deferred Tax Liabilities [Abstract] | |||
Fixed and intangible assets | (311) | (325) | |
Low-income housing partnerships | (25) | (23) | |
Unremitted foreign earnings | (7) | (16) | |
Other | (24) | (25) | |
Total deferred tax liabilities | (367) | (389) | |
Net deferred tax assets (liabilities) | $ (23) | $ (46) |
INCOME TAXES (Valuation Allowan
INCOME TAXES (Valuation Allowance) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowance at beginning of year | $ (37) | $ (34) |
Net decrease/(increase) for other foreign deferred tax assets | 0 | 3 |
Net decrease/(increase) for foreign net operating loss carryforwards and tax credits | (3) | (6) |
Valuation allowance at end of year | $ (40) | $ (37) |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 37 | $ 38 | $ 71 |
Gross increases - tax positions in prior periods | 1 | 3 | 3 |
Gross decreases - tax positions in prior periods | (6) | (3) | (8) |
Gross increases - current period tax positions | 9 | 8 | 6 |
Gross decreases - current period tax positions | 0 | 0 | 0 |
Lapse of applicable statute of limitations | (1) | (4) | (34) |
Settlements | 0 | (5) | 0 |
Unrecognized tax benefits at end of year | $ 40 | $ 37 | $ 38 |
EMPLOYEE BENEFIT PLANS (Narrati
EMPLOYEE BENEFIT PLANS (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($)item | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Scenario, Forecast [Member] | United States Postretirement Benefit Plan of US Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Future amortization of gain (loss) | $ (7) | |||
Scenario, Forecast [Member] | Retirement Health Care Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Future amortization of gain (loss) | $ 3 | |||
Retirement Income Plans [Member] | United States Postretirement Benefit Plan of US Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discretionary contributions | $ 31 | $ 31 | $ 13 | |
Retirement Income Plans [Member] | Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discretionary contributions | 31 | 31 | ||
Accumulated benefit obligation | $ 632 | 596 | 559 | |
Domestic Retirement Health Care Plans [Member] | Retirement Health Care Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current assumed trend | 6.50% | |||
Ultimate trend rate | 4.50% | |||
Basis point increase (decrease) | item | 100 | |||
Domestic Defined Contribution Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Aggregate cost of the defined contribution plans | $ 47 | 45 | 45 | |
International Defined Contribution Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Aggregate cost of the defined contribution plans | $ 3 | $ 3 | $ 3 |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Retirement Health Care Plans [Member] | Retirement Health Care [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation as of beginning of year | $ 47 | $ 45 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 2 | 2 | 2 |
Actuarial loss (gain) | (4) | 2 | |
Plan amendments | 0 | 0 | |
Translation and other adjustments | 0 | 0 | |
Benefits paid | (3) | (2) | |
Benefit obligation as of end of year | 42 | 47 | 45 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets as of beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 3 | 2 | |
Benefits paid | (3) | (2) | |
Translation and other adjustments | 0 | 0 | |
Fair value of plan assets as of end of year | 0 | 0 | 0 |
Accrued benefit cost, net funded status | (42) | (47) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Pension benefit assets | 0 | 0 | |
Current accrued benefit liability | (3) | (3) | |
Non-current accrued benefit liability | (39) | (44) | |
Accrued benefit cost, net | (42) | (47) | |
Other Postretirement Benefit Plan [Member] | Retirement Income Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation as of beginning of year | 673 | 639 | |
Service cost | 1 | 1 | 2 |
Interest cost | 22 | 26 | 25 |
Actuarial loss (gain) | (21) | 51 | |
Plan amendments | 0 | (1) | |
Translation and other adjustments | 0 | (1) | |
Benefits paid | (42) | (42) | |
Benefit obligation as of end of year | 633 | 673 | 639 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets as of beginning of year | 423 | 409 | |
Actual return on plan assets | 22 | 26 | |
Employer contributions | 31 | 31 | |
Benefits paid | (42) | (42) | |
Translation and other adjustments | 0 | (1) | |
Fair value of plan assets as of end of year | 434 | 423 | $ 409 |
Accrued benefit cost, net funded status | (199) | (250) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Pension benefit assets | 2 | 1 | |
Current accrued benefit liability | (15) | (14) | |
Non-current accrued benefit liability | (186) | (237) | |
Accrued benefit cost, net | $ (199) | $ (250) |
EMPLOYEE BENEFIT PLANS (Informa
EMPLOYEE BENEFIT PLANS (Information for Retirement Income Plans with Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - Retirement Income Plans [Member] - Other Postretirement Benefit Plan [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 611 | $ 651 |
Accumulated benefit obligation | 610 | 650 |
Fair value of plan assets | $ 409 | $ 399 |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Retirement Health Care [Member] | Retirement Health Care Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 2 | 2 | 2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of unrecognized items | (2) | (3) | 2 |
Total | 0 | (1) | 4 |
Retirement Income Plans [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1 | 2 |
Interest cost | 22 | 26 | 25 |
Expected return on plan assets | (20) | (17) | (20) |
Amortization of unrecognized items | 11 | 10 | 12 |
Total | $ 14 | $ 20 | $ 19 |
EMPLOYEE BENEFIT PLANS (Items N
EMPLOYEE BENEFIT PLANS (Items Not Yet Recognized as a Component of Postretirement Expense) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 |
Retirement Income Plans [Member] | Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | $ 262 | $ 296 |
Prior service benefit | 0 | |
Net deferred income tax (assets) liabilities | (98) | |
Accumulated other comprehensive loss (income) | 164 | |
Retirement Health Care [Member] | Retirement Health Care Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | (16) | $ (13) |
Prior service benefit | (5) | |
Net deferred income tax (assets) liabilities | 7 | |
Accumulated other comprehensive loss (income) | $ (14) |
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, 2017USD ($) | |
Retirement Income Plans [Member] | Other Postretirement Benefit Plan [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Net actuarial loss (gain) as of beginning of year | $ 296 |
Amortization during the year | (11) |
Loss (gain) during the year | (23) |
Net actuarial loss (gain) as of end of year | 262 |
Retirement Health Care [Member] | Retirement Health Care Plans [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Net actuarial loss (gain) as of beginning of year | (13) |
Amortization during the year | 1 |
Loss (gain) during the year | (4) |
Net actuarial loss (gain) as of end of year | $ (16) |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Retirement Health Care [Member] | Retirement Health Care Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.66% | 3.42% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.42% | 4.16% | 4.00% |
Retirement Income Plans [Member] | Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.70% | 3.42% | |
Rate of compensation increase | 2.83% | 2.92% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.42% | 4.20% | 4.05% |
Rate of compensation increase | 2.92% | 3.37% | 4.46% |
Expected return on plan assets | 4.73% | 4.34% | 5.28% |
EMPLOYEE BENEFIT PLANS (Expecte
EMPLOYEE BENEFIT PLANS (Expected Benefit Payments) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Retirement Income Plans [Member] | Other Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 40 |
2,019 | 51 |
2,020 | 38 |
2,021 | 37 |
2,022 | 37 |
Fiscal years 2023 through 2027 | 190 |
Retirement Health Care [Member] | Retirement Health Care Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 3 |
2,019 | 3 |
2,020 | 3 |
2,021 | 3 |
2,022 | 3 |
Fiscal years 2023 through 2027 | $ 12 |
EMPLOYEE BENEFIT PLANS (Target
EMPLOYEE BENEFIT PLANS (Target Allocations and Weighted Average Asset Allocations) (Details) - Retirement Income Plans [Member] - United States Postretirement Benefit Plan of US Entity [Member] | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 100.00% | 100.00% |
Actual plan asset allocations | 100.00% | 100.00% |
U.S. Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 11.00% | 11.00% |
Actual plan asset allocations | 11.00% | 11.00% |
International Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 12.00% | 12.00% |
Actual plan asset allocations | 12.00% | 11.00% |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 74.00% | 74.00% |
Actual plan asset allocations | 73.00% | 74.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 3.00% | 3.00% |
Actual plan asset allocations | 4.00% | 4.00% |
EMPLOYEE BENEFIT PLANS (Retirem
EMPLOYEE BENEFIT PLANS (Retirement Income Plan's Assets Carried at Fair Value) (Details) - Retirement Income Plans [Member] - Other Postretirement Benefit Plan [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | $ 434 | $ 423 | $ 409 |
Fair Value, Measurements, Recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value, excluding net asset value investments | 2 | 2 | |
Common collective trusts measured at net asset value | 432 | 421 | |
Total assets at fair value | 434 | 423 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value, excluding net asset value investments | 2 | 2 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value, excluding net asset value investments | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 2 | 2 | |
Fair Value, Measurements, Recurring [Member] | Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 2 | 2 | |
Fair Value, Measurements, Recurring [Member] | Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Bond Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Common collective trusts measured at net asset value | 310 | 307 | |
Fair Value, Measurements, Recurring [Member] | International Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Common collective trusts measured at net asset value | 64 | 56 | |
Fair Value, Measurements, Recurring [Member] | Domestic Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Common collective trusts measured at net asset value | 46 | 44 | |
Fair Value, Measurements, Recurring [Member] | Real Estate Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Common collective trusts measured at net asset value | $ 12 | $ 14 |
SEGMENT REPORTING (Selected Fin
SEGMENT REPORTING (Selected Financial Information Relating To Company's Segments ) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Segment Reporting [Abstract] | |||||||||||||
Number of reportable segments | segment | 4 | ||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | $ 1,647 | $ 1,477 | $ 1,406 | $ 1,443 | $ 1,600 | $ 1,426 | $ 1,345 | $ 1,390 | $ 5,973 | $ 5,761 | $ 5,655 | $ 5,514 | $ 5,533 |
Earnings from continuing operations before income taxes | 1,033 | 983 | 921 | ||||||||||
Income from equity investees | 19 | 15 | 14 | ||||||||||
Total assets | 4,573 | 4,510 | 4,573 | 4,510 | 4,154 | $ 4,251 | $ 4,302 | ||||||
Capital expenditures | 231 | 172 | 125 | ||||||||||
Depreciation and amortization | 163 | 165 | 169 | ||||||||||
Stock-based compensation | 51 | 45 | 32 | ||||||||||
Operating Segments [Member] | Cleaning [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 2,002 | 1,912 | 1,824 | ||||||||||
Earnings from continuing operations before income taxes | 523 | 511 | 445 | ||||||||||
Income from equity investees | 0 | 0 | 0 | ||||||||||
Total assets | 881 | 883 | 881 | 883 | |||||||||
Capital expenditures | 76 | 44 | 35 | ||||||||||
Depreciation and amortization | 51 | 61 | 52 | ||||||||||
Stock-based compensation | 16 | 10 | 8 | ||||||||||
Operating Segments [Member] | Household [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 1,961 | 1,862 | 1,794 | ||||||||||
Earnings from continuing operations before income taxes | 419 | 428 | 375 | ||||||||||
Income from equity investees | 0 | 0 | 0 | ||||||||||
Total assets | 1,103 | 1,092 | 1,103 | 1,092 | |||||||||
Capital expenditures | 82 | 83 | 50 | ||||||||||
Depreciation and amortization | 64 | 60 | 67 | ||||||||||
Stock-based compensation | 15 | 8 | 7 | ||||||||||
Operating Segments [Member] | Lifestyle [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 1,000 | 990 | 950 | ||||||||||
Earnings from continuing operations before income taxes | 244 | 251 | 257 | ||||||||||
Income from equity investees | 0 | 0 | 0 | ||||||||||
Total assets | 902 | 880 | 902 | 880 | |||||||||
Capital expenditures | 30 | 18 | 11 | ||||||||||
Depreciation and amortization | 20 | 19 | 19 | ||||||||||
Stock-based compensation | 9 | 5 | 4 | ||||||||||
Operating Segments [Member] | International [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 1,010 | 997 | 1,087 | ||||||||||
Earnings from continuing operations before income taxes | 81 | 66 | 79 | ||||||||||
Income from equity investees | 19 | 15 | 14 | ||||||||||
Total assets | 1,060 | 1,057 | 1,060 | 1,057 | |||||||||
Capital expenditures | 37 | 24 | 25 | ||||||||||
Depreciation and amortization | 22 | 21 | 24 | ||||||||||
Stock-based compensation | 2 | 1 | 1 | ||||||||||
Corporate, Non-Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||
Earnings from continuing operations before income taxes | (234) | (273) | (235) | ||||||||||
Income from equity investees | 0 | 0 | 0 | ||||||||||
Total assets | $ 627 | $ 598 | 627 | 598 | |||||||||
Capital expenditures | 6 | 3 | 4 | ||||||||||
Depreciation and amortization | 6 | 4 | 7 | ||||||||||
Stock-based compensation | $ 9 | $ 21 | $ 12 |
SEGMENT REPORTING (Concentratio
SEGMENT REPORTING (Concentration Percentages) (Details) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Home Care Products [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 25.00% | 24.00% | 24.00% |
Bags, Wraps and Container Products [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 18.00% | 19.00% | 19.00% |
Laundry Additive Products [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 15.00% | 16.00% | 17.00% |
Charcoal [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 11.00% | 11.00% | 11.00% |
Food Products [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 10.00% | 10.00% | 10.00% |
Walmart Stores, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 26.00% | 27.00% | 26.00% |
SEGMENT REPORTING (Net Sales an
SEGMENT REPORTING (Net Sales and Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||
Net sales | $ 1,647 | $ 1,477 | $ 1,406 | $ 1,443 | $ 1,600 | $ 1,426 | $ 1,345 | $ 1,390 | $ 5,973 | $ 5,761 | $ 5,655 | $ 5,514 | $ 5,533 |
Net property, plant and equipment | 931 | 906 | 931 | 906 | |||||||||
UNITED STATES | |||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||
Net sales | 5,001 | 4,805 | 4,609 | ||||||||||
Net property, plant and equipment | 823 | 799 | 823 | 799 | |||||||||
Foreign [Member] | |||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||
Net sales | 972 | 956 | $ 1,046 | ||||||||||
Net property, plant and equipment | $ 108 | $ 107 | $ 108 | $ 107 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |||
Percentage ownership of equity investments, maximum | 50.00% | ||
Equity method investments | $ 58 | $ 59 | |
Payments to related parties | $ 62 | $ 57 | $ 55 |
UNAUDITED QUARTERLY DATA (Detai
UNAUDITED QUARTERLY DATA (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||||
Net sales | $ 1,647 | $ 1,477 | $ 1,406 | $ 1,443 | $ 1,600 | $ 1,426 | $ 1,345 | $ 1,390 | $ 5,973 | $ 5,761 | $ 5,655 | $ 5,514 | $ 5,533 |
Cost of products sold | 895 | 827 | 777 | 803 | 873 | 780 | 745 | 765 | 3,302 | 3,163 | 3,190 | ||
Gross profit | 2,671 | 2,598 | 2,465 | 2,356 | 2,391 | ||||||||
Earnings from continuing operations | 202 | 172 | 150 | 179 | 165 | 159 | 151 | 173 | 703 | 648 | 606 | 579 | 573 |
Losses from discontinued operations, net of tax | (1) | 0 | (1) | 0 | 0 | 3 | (2) | (1) | (2) | 0 | (26) | (21) | (1) |
Net earnings | $ 201 | $ 172 | $ 149 | $ 179 | $ 165 | $ 162 | $ 149 | $ 172 | $ 701 | $ 648 | $ 580 | $ 558 | $ 572 |
Basic | |||||||||||||
Basic continuing operations (in dollars per share) | $ 1.56 | $ 1.34 | $ 1.16 | $ 1.39 | $ 1.28 | $ 1.23 | $ 1.16 | $ 1.34 | $ 5.45 | $ 5.01 | $ 4.65 | $ 4.47 | $ 4.37 |
Basic discontinued operations (in dollars per share) | (0.01) | 0 | 0 | 0 | 0 | 0.02 | (0.01) | (0.01) | (0.02) | 0 | (0.20) | ||
Basic net earnings per share (in dollars per share) | 1.55 | 1.34 | 1.16 | 1.39 | 1.28 | 1.25 | 1.15 | 1.33 | 5.43 | 5.01 | 4.45 | ||
Diluted | |||||||||||||
Diluted continuing operations (in dollars per share) | 1.53 | 1.31 | 1.14 | 1.36 | 1.26 | 1.21 | 1.14 | 1.32 | 5.35 | 4.92 | 4.57 | 4.39 | 4.31 |
Diluted discontinued operations (in dollars per share) | (0.01) | 0 | 0 | 0 | 0 | 0.02 | (0.01) | (0.01) | (0.02) | 0 | (0.20) | ||
Diluted net earnings per share (in dollars per share) | 1.52 | 1.31 | 1.14 | 1.36 | 1.26 | 1.23 | 1.13 | 1.31 | 5.33 | 4.92 | 4.37 | ||
Dividends per share declared (in dollars per share) | 0.84 | 0.80 | 0.80 | 0.80 | 0.80 | 0.77 | 0.77 | 0.77 | 3.24 | 3.11 | $ 2.99 | $ 2.87 | $ 2.63 |
Market price (NYSE), high | 141.76 | 139.30 | 124.70 | 140.47 | 138.41 | 132.19 | 131.78 | 119.75 | 141.76 | 138.41 | |||
Market price (NYSE), low | 127.62 | $ 118.41 | $ 111.24 | $ 121.75 | 119.23 | $ 122.40 | $ 114.06 | $ 104.26 | 111.24 | 104.26 | |||
Market price (NYSE), year-end | $ 133.24 | $ 138.39 | $ 133.24 | $ 138.39 | |||||||||
Total assets | $ 4,573 | $ 4,510 | $ 4,573 | $ 4,510 | $ 4,154 | $ 4,251 | $ 4,302 | ||||||
Long-term debt | $ 1,391 | $ 1,789 | $ 1,391 | $ 1,789 | $ 1,786 | $ 1,588 | $ 2,161 |
VALUATION AND QUALIFYING ACC106
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ (5) | $ (4) | $ (3) |
Charged to costs and expenses | 0 | (1) | (1) |
Credited to costs and expenses | 2 | 0 | 0 |
Valuation Allowances and Reserves, Deductions | 0 | 0 | 0 |
Balance at end of period | (3) | (5) | (4) |
LIFO Allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | (32) | (34) | (36) |
Charged to costs and expenses | 0 | (1) | 0 |
Credited to costs and expenses | 0 | 0 | 0 |
Valuation Allowances and Reserves, Deductions | 6 | 3 | 2 |
Balance at end of period | (26) | (32) | (34) |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | (37) | (34) | (51) |
Charged to costs and expenses | (3) | (5) | (4) |
Credited to costs and expenses | 0 | 0 | 0 |
Valuation Allowances and Reserves, Deductions | 0 | 2 | 21 |
Balance at end of period | $ (40) | $ (37) | $ (34) |