MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS
Results of Operations
Continuing operations again achieved record unit volume in 1996, after
record years in 1995 and 1994. The gain in 1996 volume was principally due
to: acquisition activity in Latin America; record volumes for Pine-Sol,
Clorox toilet bowl cleaner, Clorox liquid bleach, Clorox Clean-Up cleaners,
Tilex products, Kingsford charcoal briquets, and the Brita water filtration
business in the United States; and the effects of the 1995 Brita Canada and
the Black Flag insecticide acquisitions. These were partially offset by
lower volumes in our food business. The gain in 1995 volume was principally
due to a full year's ownership of the S.O.S business, which was acquired in
mid 1994, growth in the Brita water filtration business in the United
States, and record volumes for Combat insecticides, Clorox liquid bleach,
Clorox Clean-Up dilutable cleaner, Tilex soap scum remover, Clorox toilet
bowl cleaner, Professional Strength Formula 409 cleaner, Pine-Sol cleaner,
and the Kingsford line of charcoal briquets.
Net sales increased 12% in 1996 following increases of 8% in 1995 and 12%
in 1994. This year's growth was driven primarily by the volume increases
and the acquisitions mentioned above.
Cost of products sold was 45% of net sales in 1996, 1995, and 1994.
Research and development (R&D) expense was up slightly over 1995. New
product activity continued at a high level for the third consecutive year
and reflects efficiencies achieved in the R&D function to bring new products
to market faster and at lower overall costs. R&D activities are anticipated
to continue at current levels as a percent of sales. We expect to continue
to shorten development times and further improve cost efficiencies while
maintaining a high level of new product activity in 1997.
Selling, delivery, and administration expenses increased 12% over 1995 and
remained constant as a percentage of net sales. The increase is principally
attributable to the strategic growth of our international business where
we have increased our overhead infrastructure through acquisitions or
through expanding our marketing activities in Latin America, the Caribbean,
Canada, the Pacific Rim, and Central Europe. In addition, we incurred
transition costs related to the implementation of our manufacturing
strategy, and our new Customer Interface project that we believe will
improve customer service. We continue to focus on improving our cost
structure and anticipate continued spending during 1997 on our
International infrastructure and the Customer Interface initiative.
Advertising expense increased 5% over 1995 and includes a shift in emphasis
away from consumer sales promotions, i.e., couponing, to media advertising,
which increased at a rate faster than sales. This follows a trend started
in 1995 when marketing expense increased 3% over 1994.
Interest expense, the majority of which relates to long-term financing,
increased by $13,168,000 in 1996 and $6,696,000 in 1995 due to additional
borrowings to finance acquisitions and our share-repurchase program.
Effective tax rates were 40.0%, 40.6%, and 41.3% in 1996, 1995, and 1994,
respectively. The decrease in 1995 was principally due to the effecting
1994 of the retroactive 1% increase in the federal statutory tax rate that
was reflected in 1994 earnings.
Earnings per share from continuing operations increased $.50 in 1996 over
1995, a 13% improvement, and $.43 in 1995, also a 13% improvement over
1994, both of which were driven by the volume growth described above and
shares repurchased in 1996, 1995, and 1994 under the share-repurchase
program. Net earnings per share decreased in 1995 from 1994 due to the
inclusion in 1994 of $.59 earnings per share from discontinued
operations.
Foreign Operations
Foreign net sales were $302,575,000 and represented 14% of total company
sales in 1996. This was up significantly from 1995 and 1994 when foreign
sales represented only 9% and 7%, respectively, of total Company sales.
This growth comes primarily from volume associated with acquisitions made
in the last three years, principally in Latin America. Foreign pre-tax
earnings in 1996 were $14,525,000 and have grown from $5,989,000 in 1994.
Earnings levels in these years reflect investment spending on our
international infrastructure and the cost of integrating these operations
into our mode of business. Our stated strategy has been to grow our
International business to 20% of total Company net sales by the turn of the
century. Commensurate with the growth in sales, identifiable assets have
grown to $613,375,000 in 1996 from $191,468,000 in 1994 primarily due to
acquisitions of existing businesses abroad.
Financial Position and Liquidity
Cash provided by continuing operations was a record $406,665,000 in 1996
and resulted from record earnings and our continued focus on efficient
utilization of resources driven by the Clorox Value Measure (CVM) economic
value measurement system implemented in 1993. CVM increased 20% in 1996
over 1995. The 1995 increase in CVM was 26%, which followed the two
previous years' increases of 18%. Inventory levels are up over last year
due to acquisitions in 1996 and 1995. Both short-term and long-term debt
increased over the prior year principally to fund a portion of 1996
investing activities and the stock repurchase program.
At June 30, 1996, we had available a $350,000,000 credit agreement with a
syndication of banks that expires on May 31, 2000.
During 1996, we invested $165,231,000 in new businesses. Foreign
acquisitions included the Poett San Juan home products business in
Argentina, the largest business acquired, and the Electroquimicas Unidos
S.A.C.I. bleach business in Chile. Domestically, acquisitions included the
Black Flag line of insecticides and the Lestoil brand of home cleaning
products.
During 1995, $97,651,000 was invested in new businesses, all of which were
outside the United States. The largest single investment was Brita
International Holdings, Inc., of Canada. On January 1, 1994, the S.O.S
products business was acquired for $116,488,000. Also during 1994,
additional foreign investments of $25,949,000 were made.
Dividends paid in 1996 were $110,447,000 or $2.12 per share. In July 1996,
we announced a 9.4% increase in the quarterly dividend rate to $.58 from
$.53 per share for a new annual rate of $2.32.
In 1996, 1995, and 1994, cash flow from operations has exceeded cash needs
for capital expenditures, dividends, and scheduled debt service. We believe
that cash flows from operations, supplemented if necessary by financing
expected to be available from external sources, will provide sufficient
liquidity for the foreseeable future. However, depending upon conditions
in the financial markets and other factors, the Company may from time to
time consider the issuance of debt or other securities, the proceeds of
which would be used to finance acquisitions, to refinance debt, or for
other general corporate purposes. Proceeds from the sale of discontinued
operations generated cash of $159,293,000 in 1994.
We recently completed a stock repurchase program authorized in July 1995 by
our Board of Directors. During 1996, 1,266,906 shares were repurchased at a
cost of $98,112,000. During 1995, we completed a stock repurchase program
initiated in 1989 in which 5,000,000 shares were repurchased. Reacquired
shares are held as treasury shares and are available for reissuance for
corporate uses.
In order to manage the impact of interest rate movements on interest
expense and interest income, we have approved the use of interest rate
derivative instruments, such as interest rate swaps. These instruments have
the effect of converting fixed rate interest to floating, or floating to
fixed. Conditions under which derivatives can be used are set forth in a
Company Policy Statement. They include a restriction on the amount of
such activity to a designated portion of existing debt, a limit on the
term of any derivative transaction, and a specific prohibition of the use
of any leveraged instrument. Other derivative instruments used to hedge
assets and anticipated transactions include foreign currency contracts.
We are committed to an ongoing program of comprehensive, long-term
environmental assessment of our facilities. This program is implemented by
the Company's Department of Health, Safety and Environment, with guidance
from legal counsel. During each facility assessment, compliance with
applicable environmental laws and regulations is evaluated and the facility
is reviewed in an effort to identify possible future environmental
liabilities. Although not material, at June 30, 1996 and 1995, expected
costs have been accrued for the probable future costs of environmental
liabilities without offset for expected insurance recoveries or discounting
for present value.
INDEPENDENT AUDITOR'S REPORT
The Stockholders and Board of Directors of The Clorox Company:
We have audited the accompanying consolidated balance sheets of The Clorox
Company and its subsidiaries (the companies) as of June 30, 1996 and 1995,
and the related statements of consolidated earnings, consolidated
stockholders' equity and consolidated cash flows for the years ended June
30, 1996, 1995, and 1994. These financial statements are the responsibility
of the companies' management. Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in
all material respects, the financial position of the companies at June 30,
1996 and 1995, and the results of their operations and their cash flows for
the years ended June 30, 1996, 1995, and 1994 in conformity with generally
accepted accounting principles.
/S/ DELOITTE & TOUCHE LLP
Deloitte & Touche LLP
Oakland, California August 8, 1996
CONSOLIDATED FINANCIAL STATEMENTS
Years ended June 30 (in thousands, except per-share amounts) 1996 1995 1994
Net Sales $2,217,843 $1,984,170 $1,836,949
- --------------------------------------------------------------------------------------------------------
Costs and Expenses
Cost of products sold 1,007,200 892,172 820,434
Selling, delivery and administration 464,767 416,392 359,360
Advertising 285,015 271,730 286,666
Research and development 45,821 44,819 44,558
Interest expense 38,288 25,120 18,424
Other (income) expense, net 6,365 (3,957) 874
- --------------------------------------------------------------------------------------------------------
Total costs and expenses 1,847,456 1,646,276 1,530,316
- --------------------------------------------------------------------------------------------------------
Earnings Before Income Taxes 370,387 337,894 306,633
Income Taxes 148,295 137,062 126,640
- --------------------------------------------------------------------------------------------------------
Earnings from Continuing Operations 222,092 200,832 179,993
Earnings from Discontinued Operations - - 32,064
- --------------------------------------------------------------------------------------------------------
Net Earnings $ 222,092 $ 200,832 $ 212,057
========================================================================================================
Earnings per Common Share
Continuing operations $ 4.28 $ 3.78 $ 3.35
Discontinued operations - - 0.59
- --------------------------------------------------------------------------------------------------------
Net Earnings $ 4.28 $ 3.78 $ 3.94
========================================================================================================
Weighted Average Shares Outstanding 51,935 53,147 53,800
========================================================================================================
See notes to consolidated financial statements.
CONSOLIDATED BALANCE SHEETS
Years ended June 30 (in thousands, except shares and per-share amounts) 1996 1995
Assets
Current Assets
Cash and short-term investments $ 90,828 $ 137,330
Accounts receivable, less allowance 315,106 311,868
Inventories 138,848 121,095
Prepaid expenses 18,076 18,543
Deferred income taxes 10,987 11,495
- ---------------------------------------------------------------------------------------------------------------------
Total current assets 573,845 600,331
- ---------------------------------------------------------------------------------------------------------------------
Property, Plant and Equipment - Net 551,437 524,972
- ---------------------------------------------------------------------------------------------------------------------
Brands, Trademarks, Patents and Other Intangibles - Net 704,669 592,792
- ---------------------------------------------------------------------------------------------------------------------
Investments in Affiliates 99,033 96,385
- ---------------------------------------------------------------------------------------------------------------------
Other Assets 249,910 92,192
- ---------------------------------------------------------------------------------------------------------------------
Total $2,178,894 $1,906,672
=====================================================================================================================
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 155,366 $ 122,763
Accrued liabilities 266,192 234,595
Short-term debt 192,683 115,303
Income taxes payable 9,354 6,283
Current maturities of long-term debt 291 379
- ---------------------------------------------------------------------------------------------------------------------
Total current liabilities 623,886 479,323
- ---------------------------------------------------------------------------------------------------------------------
Long-term Debt 356,267 253,079
- ---------------------------------------------------------------------------------------------------------------------
Other Obligations 117,505 85,129
- ---------------------------------------------------------------------------------------------------------------------
Deferred Income Taxes 148,408 145,228
- ---------------------------------------------------------------------------------------------------------------------
Stockholders' Equity
Common stock - authorized, 175,000,000 shares, $1 par value 55,422 55,422
Additional paid-in capital 111,782 108,347
Retained earnings 1,078,789 971,380
Treasury shares, at cost (268,652) (168,217)
Cumulative translation adjustments and other (44,513) (23,019)
=====================================================================================================================
Stockholders' equity 932,828 943,913
- ---------------------------------------------------------------------------------------------------------------------
Total $2,178,894 $1,906,672
=====================================================================================================================
See notes to consolidated financial statements.
STATEMENTS OF CONSOLIDATED STOCKHOLDERS' EQUITY
cumulative
(in thousands, except shares common stock additional treasury shares translation
and per-share amounts) -------------------- paid-in retained ------------------ adjustments
shares amount capital earnings shares amount and other
==========================================================================================================================
Balance, June 30, 1993 55,422,297 $55,422 $105,483 $ 762,162 (572,155) $ (23,357) $(20,416)
Net earnings 212,057
Dividends ($1.80 per share) (97,095)
Employee stock plans and other 1,071 (292) 405,414 16,121
Treasury stock acquired (1,883,300) (99,910)
Translation adjustments (1,829)
- --------------------------------------------------------------------------------------------------------------------------
Balance, June 30, 1994 55,422,297 55,422 106,554 876,832 (2,050,041) (107,146) (22,245)
Net earnings 200,832
Dividends ($1.92 per share) (102,272)
Employee stock plans and other 1,793 (4,012) 355,211 17,199 (1,187)
Treasury stock acquired (1,325,485) (78,270)
Translation adjustments 413
- --------------------------------------------------------------------------------------------------------------------------
Balance, June 30, 1995 55,422,297 55,422 108,347 971,380 (3,020,315) (168,217) (23,019)
Net earnings 222,092
Dividends ($2.12 per share) (110,447)
Employee stock plans and other 3,435 (4,236) 362,750 14,936 (9,949)
Treasury stock acquired (1,266,906) (98,112)
Put option obligations (240,000) (17,259)
Translation adjustments (11,545)
- --------------------------------------------------------------------------------------------------------------------------
Balance, June 30, 1996 55,422,297 $55,422 $111,782 $1,078,789 (4,164,471) $(268,652) $(44,513)
See notes to consolidated financial statements.
STATEMENTS OF CONSOLIDATED CASH FLOWS
Years ended June 30 (in thousands) 1996 1995 1994
Operations
Earnings from continuing operations $ 222,092 $ 200,832 $ 179,993
Adjustments to reconcile to net cash provided by
continuing operations:
Depreciation and amortization 116,534 103,866 94,120
Deferred income taxes 2,020 15,386 15,985
Other 16,057 7,498 25,985
Effects of changes in:
Accounts receivable 27,447 (58,314) (18,299)
Inventories (5,132) (11,723) 5,691
Prepaid expenses 7,653 (1,892) 2,355
Accounts payable 17,890 21,771 13,485
Accrued liabilities 2,561 15,630 (8,134)
Income taxes payable (457) (2,205) (12,741)
- ------------------------------------------------------------------------------------------------------------------------
Net cash provided by continuing operations 406,665 290,849 298,440
Net cash (used for) discontinued operations - - (31,658)
- ------------------------------------------------------------------------------------------------------------------------
Net cash provided by operations 406,665 290,849 266,782
- ------------------------------------------------------------------------------------------------------------------------
Investing Activities
Property, plant and equipment (84,804) (62,911) (56,627)
Net proceeds from sales of businesses - - 159,293
Businesses purchased (165,231) (97,651) (142,437)
Disposal of property, plant and equipment 2,671 8,707 11,264
Other (47,312) (23,299) (22,046)
- ------------------------------------------------------------------------------------------------------------------------
Net cash used for investment (294,676) (175,154) (50,553)
- ------------------------------------------------------------------------------------------------------------------------
Financing Activities
Long-term borrowings 110,000 47,298 13,000
Long-term debt repayments (14,732) (2,806) (741)
Forward purchase financing agreements (110,045) (31,138) -
Short-term borrowings, net 50,763 62,115 3,430
Cash dividends (110,447) (102,272) (97,095)
Treasury stock acquired (98,112) (78,270) (99,910)
Employee stock plans and other 14,082 10,786 9,845
- ------------------------------------------------------------------------------------------------------------------------
Net cash used for financing (158,491) (94,287) (171,471)
- ------------------------------------------------------------------------------------------------------------------------
Net (decrease) increase in cash and short-term investments (46,502) 21,408 44,758
Cash and short-term investments:
Beginning of year 137,330 115,922 71,164
- ------------------------------------------------------------------------------------------------------------------------
End of year $ 90,828 $ 137,330 $ 115,922
========================================================================================================================
Cash Paid For
Interest (net of amounts capitalized) $ 36,576 $ 25,479 $ 18,267
Income taxes 116,799 106,821 128,210
Noncash Transactions
Liabilities arising from businesses purchased $ 75,690 $ 25,047 $ 7,200
========================================================================================================================
See notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 Significant Accounting Policies
Nature of Operations and Principles of Consolidation
The Company is principally engaged in the production and marketing
of nondurable consumer products to grocery stores, mass merchandisers
and other retail outlets. The consolidated financial statements
include the statements of the Company and its majority-owned and
controlled subsidiaries. All significant intercompany transactions
and accounts are eliminated in consolidation.
Accounting Estimates
The preparation of consolidated financial statements
in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect reported amounts
and related disclosures. Actual results could differ from estimates and
assumptions made.
Short-term Investments
Short-term investments consist of money market and
other high-quality instruments with an initial maturity of three months or
less and are stated at cost, which approximates market value.
Inventories
Inventories are stated at the lower of cost or market. Cost
of the majority of inventories is determined on the last-in, first-out
(LIFO) method. Cost of the remainder of the inventories is determined
generally on the first-in, first-out (FIFO) method.
Property, Plant and Equipment
Property, plant and equipment are stated at
cost. Depreciation is calculated by the straight-line method over the
estimated useful lives of the depreciable assets.
Brands, Trademarks, Patents and Other Intangibles
Brands, trademarks, patents and other intangible assets arising from
transactions after October 30, 1970 are amortized over their estimated
useful lives up to a maximum of 40 years. Carrying values are reviewed
periodically and a determination of impairment is made based on
estimates of future cash flows, undiscounted and without interest
charges.
Investments in Affiliates
The Company holds minority investments in
foreign entities which are accounted for under the equity method. The most
significant investment is a 20 percent equity ownership in Henkel Iberica,
S.A. of Spain.
Forward Purchase Financing Agreements I
n connection with the financing of
acquisitions in Argentina in 1996 and the Brita water filtration systems
business in Canada in 1995, the Company entered into forward purchase
agreements with third parties whereby the Company has purchased preferred
stock of certain of its foreign subsidiaries for future delivery from
third parties who have the right to acquire the preferred stock according
to the terms of certain subscription agreements. The differences between
the purchase prices and the third party subscription prices are being
accreted on a straight-line basis over the terms of the agreements.
Income Taxes The Company uses the liability method to account for income
taxes, in accordance with Statement of Financial Accounting Standards
(SFAS) No. 109, "Accounting for Income Taxes."
Foreign Currency Translation
The local currency is primarily the
functional currency for the Company's foreign operations. Assets
and liabilities are translated using the exchange rates in effect at the
balance sheet date. Income and expenses are translated at the average
exchange rates during the year. Translation gains and losses, and the
effects of exchange rate changes on transactions designated as hedges of
net foreign investments, are reported in stockholders' equity. Transaction
gains and losses and foreign currency gains and losses where the U.S.
dollar is the functional currency are included in net earnings.
Earnings per Common Share
Earnings per common share are computed by
dividing net earnings by the weighted average number of common shares
outstanding during each year. The potential dilution from the exercise of
stock options is not material.
Major Customer
Sales to the Company's largest customer, Wal-Mart Stores,
Inc. and its affiliates, were 14%, 13%, and 12% of consolidated net sales in
1996, 1995, and 1994, respectively.
Derivative Financial Instruments
The use of financial instruments is
limited to purposes other than trading and includes management of interest
rate movements (interest rate swaps), and foreign currency exposure
(forward contracts) related to supply contracts, accounts receivable and
net investments in foreign subsidiaries. Both categories of financial
instruments are treated as off-balance sheet financial instruments. Gains or
losses on hedges of existing assets are included in the carrying amounts
and are recognized in earnings when those assets are liquidated. Gains or
losses arising from hedges of firm commitments and anticipated
transactions are deferred and recognized in earnings or as an adjustment
of carrying amounts when the hedged transaction occurs. Interest rate swap
agreements are accounted for using the settlement basis of accounting. As
such, no gains or losses are recorded for movements in the swaps' values
during the term of the agreements.
Note 2 Discontinued Operations
The Company sold its bottled water and frozen foods businesses during 1994
for $159,293,000. The sale of these businesses resulted in a net gain of
$31,430,000. Results of discontinued operations are classified separately in
the Statements of Consolidated Earnings and include (in thousands):
1994
Net sales $18,700
- -------------------------------------==========
Earnings from operations
before income taxes $ 1,043
Income taxes (409)
- -----------------------------------------------
Net earnings from
discontinued operations 634
- -----------------------------------------------
Gain on sale of businesses 42,177
Income taxes (10,747)
- -----------------------------------------------
Net gain on sale of businesses 31,430
- -----------------------------------------------
Earnings from discontinued
operations $32,064
- -------------------------------------==========
Note 3 Acquisitions
Acquisitions in 1996 totaled $165,231,000 and included Black Flag
insecticides, Lestoil cleaner, the Poett San Juan home cleaning products
business in Argentina, and the Electroquimicas Unidas S.A.C.I. bleach
business in Chile. They were each accounted for as purchases and were
funded with cash from operations and debt. Approximately $143,019,000 of
the total acquisition costs have been allocated to brands, trademarks and
other intangibles to be amortized over estimated lives of up to 40 years.
Purchases in 1996 included, at fair value, assets of $97,902,000, and the
assumption of liabilities of $75,690,000.
Acquisitions in 1995 totaled $97,651,000 and were funded from cash from
operations and debt. They included Brita International Holdings, Inc., a
Canadian-based manufacturer and marketer of Brita water filtration systems,
and eight foreign investments, all of which were accounted for as
purchases. Approximately $96,337,000 of the acquisition cost was allocated
to brands, trademarks and other intangibles to be amortized over estimated
lives up to 40 years. Those purchased in 1995 included, at fair value,
assets of $26,361,000 and the assumption of liabilities of $25,047,000.
On January 31, 1994, the Company acquired the S.O.S products business of
Miles, Inc., which was accounted for as a purchase. The acquisition cost of
$116,488,000 included the S.O.S brand of soap pads and other cleaning
products in the United States and Canada, manufacturing facilities, and
certain items of working capital. Approximately $98,850,000 of the purchase
price has been allocated to brands, trademarks and other intangibles to be
amortized over an estimated life of 40 years. The purchase included, at
fair value, current assets of $9,200,000; property, plant and equipment of
$15,600,000; the assumption of current liabilities of $5,300,000, and a
post retirement healthcare liability of $1,900,000. In addition,
acquisitions included various foreign investments of $25,949,000. These
acquisitions were funded from cash from operations and short-term
borrowings.
Operating results of acquired businesses are included in consolidated net
earnings from the date of acquisition.
Note 4 Inventories
The major classes are (in thousands):
1996 1995
- -----------------------------------------------------------------------
Finished goods and work in process $ 82,261 $ 71,102
Raw materials and supplies 56,587 49,993
- -----------------------------------------------------------------------
Total $138,848 $121,095
=======================================================================
Had the cost of inventories been determined using the FIFO method,
inventories would have been higher by approximately $13,320,000 at June 30,
1996 and $14,218,000 at June 30, 1995. The LIFO method was used to value
61% of the inventory at June 30, 1996 and 74% at June 30, 1995.
Note 5 Property, Plant and Equipment
The major classes are (in thousands):
1996 1995
- --------------------------------------------------------------------
Land and improvements $ 63,474 $ 60,083
Buildings 274,895 263,509
Machinery and equipment 577,015 534,660
Construction in progress 45,897 31,622
- -----------------------------------------------------------------------
Total 961,281 889,874
Less accumulated depreciation 409,844 364,902
- -----------------------------------------------------------------------
Net $551,437 $524,972
- ----------------------------------------------=========================
Depreciation expense was $72,619,000 in 1996, $66,886,000 in 1995 and
$61,660,000 in 1994.
Note 6 Brands, Trademarks, Patents and Other Intangibles - Net
The major classes are (in thousands):
1996 1995
- ------------------------------------------------------------------------
Brands and trademarks $722,149 $583,902
Patents and other intangibles 133,096 129,076
Accumulated amortization (150,576) (120,186)
- -----------------------------------------------------------------------
Net $704,669 $592,792
- ----------------------------------------------=========================
Brands and trademarks include $41,708,000 of continuing value arising from
transactions prior to October 31, 1970.
Note 7 Other Assets
The major components are (in thousands):
1996 1995
- ------------------------------------------------------------------------
Forward purchase financing agreements $146,524 $31,138
Other 103,386 61,054
- ------------------------------------------------------------------------
Total $249,910 $92,192
- ----------------------------------------------=========================
The cost to acquire preferred stock of certain foreign subsidiaries
according to terms of forward purchase financing agreements was $141,183,000
and $31,138,000 at June 30, 1996 and 1995, respectively. The difference
between cost and third party subscription price of the preferred stock is
being accreted on a straight-line basis over five years. The amount of
accretion included in other income was $5,341,000 in 1996.
Note 8 Accrued Liabilities
Advertising costs included in accrued liabilities at June 30, 1996 and 1995
were $121,877,000 and $126,268,000, respectively.
Note 9 Short-term Debt
The major components are (in thousands):
1996 1995
- ---------------------------------------------------------------
Commercial paper $167,241 $105,031
Bank loans 25,442 10,272
- ---------------------------------------------------------------
Net $192,683 $115,303
- ----------------------------------------=======================
Note 10 Long-term Debt
The principal components are (in thousands):
1996 1995
- -----------------------------------------------------------------
8.8% Non-callable notes
due August 2001,
including net unamortized
premium of $173 and
$208, respectively $200,173 $200,208
Bank loans due March 2001,
including accrued unpaid
interest of $2,325, at fixed
rates ranging from 6.7% to 7.7% 112,325 -
Other debt 44,060 53,250
- -----------------------------------------------------------------
356,558 253,458
Less: current maturities 291 379
- -----------------------------------------------------------------
Long-term debt $356,267 $253,079
- -----------------------------------------------==================
The Company has a $350,000,000 credit agreement with a syndication of banks
which expires on May 31, 2000. The credit agreement requires maintenance of
a minimum net worth of $704,000,000. At June 30, 1996, the credit agreement
is available for general corporate purposes and for the support of
additional commercial paper issuance.
Note 11 Financial Instruments and Fair Values
In order to manage the impact of interest rate movements, the Company has
entered into six interest rate swap agreements. The transactions
effectively convert a portion of the Company's interest rate exposure on
its 8.8% fixed rate non-callable notes to a floating rate. The effect of the
swap agreements on the 8.8% fixed rate notes reduced interest expense by
$522,000 and $573,000 in 1996 and 1995, respectively, and resulted in
effective borrowing rates of 8.5% in both years. Under the terms of these
agreements, the Company agrees with other parties to exchange, at specified
intervals, the difference between fixed-rate and floating-rate interest
amounts as calculated by reference to agreed upon notional principal
amounts. LIBOR is used as the variable rate index for calculation.
In 1996, the Company entered into a Canadian dollar interest rate swap that
converted a portion of the exposure of floating interest rate Canadian debt
to a fixed rate of 6.3%. This swap agreement resulted in an effective
borrowing rate of 6.9%.
Exposure to counterparty credit risk has been decreased by entering into
these agreements only with major financial institutions that are expected to
fully perform under the terms of the swap agreements.
Notional amounts outstanding and weighted average rates at June 30 are
(in thousands):
1996 1995
- -----------------------------------------------------------------
Received fixed/pay
floating - notional amounts $100,000 $100,000
Weighted average receive rate 6.3% 6.6%
Weighted average pay rate 5.9% 6.6%
Pay fixed/received
floating - notional amounts $ 75,665 $ 50,000
Weighted average pay rate 7.4% 6.3%
Weighted average receive rate 6.4% 6.6%
Original terms to maturity of these agreements ranged from 71/2 to 73/4
years where fixed rates are received and at June 30, 1996 the remaining
term for these agreements was approximately 5 years. Original terms to
maturity where fixed rates are paid were 13/4 to 2 years and at June 30,
1996 the remaining term for these agreements was approximately 11/2 years.
Foreign currency forward contracts may be used periodically to manage
foreign exchange risks associated with export sales and purchases from
foreign suppliers denominated in foreign currency, net investments in
foreign subsidiaries, and other third party or intercompany foreign
currency obligations. These contracts are entered into with major financial
institutions thereby decreasing the risk of loss. Foreign currency forward
contracts with notional amounts totaling $100,942,000 and $17,937,000 were
outstanding at June 30, 1996 and 1995, respectively. The 1996 amount
includes $90,000,000 of Argentine peso contracts. The balance of the 1996
amount and the 1995 amount is Canadian dollar denominated contracts. The
majority of contracts outstanding at June 30, 1996 will expire prior to
December 31, 1996.
Fair Values The Company has used market information for similar
instruments and applied judgement to estimate fair values of financial
instruments. The carrying values of cash and short-term investments,
accounts receivable and payable, and short-term debt approximate fair
values due to their short-term nature. The values of other financial
instruments at June 30 are (in thousands):
1996 1995
- ----------------------------------------------------------------------
book fair book fair
- ----------------------------------------------------------------------
Forward purchase
financing
agreements $ 146,524 $ 146,524 $ 31,138 $ 31,138
Long-term
debt (356,267) (373,267) (253,079) (275,579)
Foreign exchange
contracts - (211) - 426
Interest rate swaps - (4,095) - (3,539)
=======================================================================
Note 12 Stockholders' Equity
In addition to common stock, the Company is authorized to issue 5,000,000
shares of preferred stock with a par value of $1 per share, none of which
is outstanding. The Company has a stock option plan under which options to
purchase shares of common stock may be granted to key employees. The plan
provides that the option price shall not be less than the fair market value
of the shares on the date of grant and that no portion of the option may be
exercised beyond ten years from that date. Options which are outstanding at
June 30, 1996 become exercisable cumulatively over one, two or three years
from the grant date. At June 30, 1996 no shares were available for the
granting of additional options or other stock compensation awards.
The Company sold 240,000 put options and purchased 240,000 call options
during the second quarter of fiscal year 1996 with various strike prices
(average of $71.91 per share) that expire on various dates through
September 30, 2005. Upon exercise, each put option requires the Company to
purchase, and each call option allows the Company to buy one share of its
common stock at the strike price. The aggregate exercise price of the put
options, $17,259,000, has been classified as other long-term obligations
with a corresponding increase in treasury stock at June 30, 1996.
A summary of changes in common stock options during 1996 and 1995 is:
number
of shares price per share
- ------------------------------------------------------------------------
Outstanding at
June 30, 1994 2,358,120 $13.81 - $63.50
Granted 386,897 48.88 - 57.20
Exercised (330,140) 13.81 - 54.63
Cancelled (35,114) 40.50 - 52.94
- ------------------------------------------------------------------------
Outstanding at
June 30, 1995 2,379,763 20.00 - 63.50
Granted 1,479,019 64.69 - 97.13
Exercised (417,135) 20.00 - 54.63
Cancelled (58,431) 43.75 - 71.75
- ------------------------------------------------------------------------
Outstanding (held
by 207 optionees)
at June 30, 1996 3,383,216 $24.34 - $97.13
========================================================================
Options exercisable at:
June 30, 1996 1,424,228
June 30, 1995 1,328,838
========================================================================
Note 13 Leases
The Company leases transportation equipment and a limited number of its
manufacturing, warehousing and office facilities. Most leases are classified
as operating leases and will expire over the next five years. Future total
minimum lease payments are $6,759,000, and do not exceed $3,765,000 in any
one year. Rental expense for continuing operations was $9,899,000 in 1996,
$11,424,000 in 1995 and $11,875,000 in 1994.
Space not occupied by the Company in its headquarters building is let to
other tenants under operating leases expiring through 2006. Future total
minimum rentals to be received are $4,637,000 and do not exceed $1,102,000
in any one year.
Note 14 Other Expense (Income), Net
The major components are (in thousands):
1996 1995 1994
- ------------------------------------------------------------------------
Amortization of
intangibles $30,439 $26,582 $23,896
Equity in earnings
of affiliates (9,793) (4,441) (5,926)
Interest income (8,132) (7,796) (5,292)
Royalty income (7,622) (7,110) (8,850)
Other, net 1,473 (11,192) (2,954)
- ------------------------------------------------------------------------
Total $ 6,365 $ (3,957) $ 874
========================================================================
Note 15 Income Taxes
Income tax expenses are (in thousands):
1996 1995 1994
- ------------------------------------------------------------------------
Current
Federal $109,964 $ 96,44 $ 86,686
State 22,532 19,778 17,562
Foreign 13,779 5,454 3,569
- ------------------------------------------------------------------------
Total current 146,275 121,676 107,817
- ------------------------------------------------------------------------
Deferred
Federal 778 12,232 16,416
State 709 688 1,173
Foreign 533 2,466 1,234
- ------------------------------------------------------------------------
Total deferred 2,020 15,386 18,823
- ------------------------------------------------------------------------
Total expense $148,295 $137,062 $126,640
========================================================================
Effective income tax rate 40.0% 40.6% 41.3%
The reconciliation between the Company's effective income tax rate and the
statutory federal income tax rate is as follows:
1996 1995 1994
- ----------------------------------------------------------------------
Federal statutory rate 35.0% 35.0% 35.0%
State income taxes, net of federal tax
benefit 4.0 3.9 3.9
Taxes on foreign earnings 1.8 1.5 1.1
Retroactive effect of federal rate increase - - 1.0
Other (.8) .2 .3
- -----------------------------------------------------------------------
Effective income tax rate 40.0% 40.6% 41.3%
=======================================================================
The net deferred income tax liabilities (assets), both current and
non-current at June 30, result from the tax effects of the following
temporary differences (in thousands):
1996 1995
- -------------------------------------------------------------
Amortization/depreciation $ 64,605 $ 61,354
Safe harbor lease agreements 26,431 29,401
Unremitted foreign earnings 45,096 45,473
Post employment benefits (19,143) (17,712)
Other 20,432 15,217
- -------------------------------------------------------------
Net $137,421 $133,733
=============================================================
Note 16 Employee Benefit Plans
Retirement Income Plans The Company has defined benefit pension plans for
substantially all its domestic employees. Benefits are based on either
employee years of service and compensation or stated dollar amount per year
of service. The Company is the sole contributor to the plans, in amounts
deemed necessary to provide benefits and to the extent deductible for
federal income tax purposes. Assets of the plans consist primarily of
stocks and bonds. The components of pension expense are (in thousands):
1996 1995 1994
- -----------------------------------------------------------------------------
Service cost -
benefits earned
in current year $ 6,238 $ 6,944 $ 5,970
Interest on projected benefit obligation 9,343 8,913 7,753
Return on plan assets:
Actual gain (25,026) (19,347) (2,762)
Deferral of the
actual gain
in excess of
(less than) the
assumed rate
of 8.75% in
1996 and 8% in
1995 and 1994 12,831 9,702 (6,029)
Other gains,
including
amortization
over 15 years of
the net pension
transition asset
at July 1, 1985 (1,075) (701) (790)
- -----------------------------------------------------------------------------
Total pension expense $ 2,311 $ 5,511 $ 4,142
=============================================================================
The plans' funded status at June 30 are as follows (in thousands):
1996 1995
- ---------------------------------------------------------------------
Actuarial present value of
the accumulated benefit
obligation, including
vested benefits of $106,508
in 1996 and $95,410
in 1995 $110,435 $101,580
Plans' assets at market value 164,080 141,385
Projected benefit obligation,
determined using a
discount rate of 8% and
including the effect of an
assumed annual increase
in future compensation
levels of 4.5% in 1996 and 1995 129,721 124,119
- ----------------------------------------------------------------------
Excess of plans' assets over
pension obligation 34,359 17,266
Less deferrals:
Remaining unamortized
balance of net pension
transition asset at
July 1, 1985 (7,044) (8,691)
Prior service cost (2,049) 4,734
Other net (gains) losses (5,157) 6,072
- -----------------------------------------------------------------------
Accrued pension asset included in other assets $ 20,109 19,381
=======================================================================
The Company has defined contribution plans for most of its domestic
employees not covered by collective bargaining agreements, to which it has
contributed through June 30, 1995 based on its earnings or participants'
contributions. Effective July 1, 1995, the Company's contribution is based
on the Clorox Value Measure economic value measurement system, defined as
net operating earnings after tax less a capital charge for net assets
employed. The Company also participates in multi-employer pension plans for
certain of its hourly-paid production employees and contributes to those
plans based on collective bargaining agreements. The aggregate cost of the
defined contribution and multi-employer pension plans was $17,006,000 in
1996, $12,427,000 in 1995 and $12,753,000 in 1994.
Retirement Health Care 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. Benefits paid take into
consideration payments by Medicare. The plans are not prefunded and the
Company has the right to modify or terminate certain of these plans.
Postretirement health care expense consists of the following (in thousands):
1996 1995 1994
- -----------------------------------------------------------------------------
Service cost -
benefits earned
in the current year $2,738 $2,643 $2,823
Interest on
projected benefit obligation 3,365 3,041 2,881
- -----------------------------------------------------------------------------
Total postretirement health care expense $6,103 $5,684 $5,704
=============================================================================
Benefits paid were $1,306,000, $1,191,000 and $1,058,000 in fiscal years
1996, 1995, and 1994, respectively.
The accumulated postretirement benefit obligation (APBO) includes the
following at June 30 (in thousands):
1996 1995
- -----------------------------------------------------------
Retirees $11,892 $12,086
Active employees 35,770 31,109
Deferral of net gains 5,755 5,425
- -----------------------------------------------------------
Total unfunded accrued
benefit obligation included
in other obligations $53,417 $48,620
===========================================================
The assumed health care cost trend rate used in measuring the APBO was
10.5% for 1996, gradually declining to 5.5% over the next 8 years.
Change sin these rates can have a significant effect on amounts reported. A
one percentage point increase in the trend rates would increase the June
30, 1996 accumulated postretirement benefit obligation by $8,674,000 and
increase 1996 expense by $1,351,000. The discount rate used to determine
the APBO was 8%.
Note 17 Industry Segment Information
The Company's operations are predominately in the nondurable consumer
products industry and include the manufacture and marketing of products
through grocery and other retail stores. Operations include those in the
United States and foreign countries. Foreign operations are principally in
Latin American countries, which include Argentina, Brazil, Mexico and
Chile. Earnings before income taxes for Domestic and Foreign operations
represent operating profits, while corporate pretax earnings and identifiable
assets include interest income and expense and other non-allocable items of
earnings, all cash, marketable securities, forward purchase financing
agreements, and the Corporate headquarters facility. Financial information
by geographic area for 1996, 1995, and 1994 is summarized at the right (in
thousands):
1996 1995 1994
- --------------------------------------------------------------------------
Net sales
Domestic $1,915,268 $1,802,993 $1,713,152
Foreign 302,575 181,177 123,797
- --------------------------------------------------------------------------
Net $2,217,843 $1,984,170 $1,836,949
==========================================================================
Earnings
(losses) before income taxes
Domestic $ 442,694 $ 412,627 $ 375,698
Foreign 14,525 5,709 5,989
Corporate (86,832) (80,442) (75,054)
- --------------------------------------------------------------------------
Total $ 370,387 $ 337,894 $ 306,633
==========================================================================
Identifiable assets
Domestic $1,131,760 $1,183,058 $1,206,937
Foreign 613,375 370,515 191,468
Corporate 433,759 353,099 299,164
- --------------------------------------------------------------------------
Total $2,178,894 $1,906,672 $1,697,569
==========================================================================
Note 18 Contingent Liabilities
The Company is subject to various lawsuits and claims arising out of its
businesses which relate to contracts, environmental issues, product
liability, patent and trademark matters, taxes and other issues. In the
opinion of management, after consultation with counsel, the disposition of
these matters will not have a material adverse effect, individually or in
the aggregate, on the Company's financial position, results of operations,
or liquidity.
RESPONSIBILITY FOR CONSOLIDATED FINANCIAL STATEMENTS
The management of the Company is responsible for the integrity and
objectivity of the financial statements included in this Annual Report. In
fulfilling this responsibility, management maintains an effective system of
internal accounting controls and supports a comprehensive internal audit
program.
The Board of Directors has an Audit Committee consisting of independent
directors. The Audit Committee meets regularly with management, internal
auditors and Deloitte & Touche LLP, independent auditors. Deloitte & Touche
LLP and the internal auditors have full authority to meet with the Audit
Committee, either with or without management representatives present.
Deloitte & Touche LLP have completed their audit of the accompanying
consolidated financial statements. Their report appears on page 24.
FINANCIAL SUMMARY
Years ended June 30
(in thousands,
except per-share data) 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
====================================================================================================================================
Operations
Net sales $2,217,843 $1,984,170 $1,836,949 $1,634,171 $1,547,057 $1,468,370 $1,309,019 $1,199,293 $1,033,747 $934,985
- ------------------------------------------------------------------------------------------------------------------------------------
Percent change 11.8 8.0 12.4 5.6 5.4 12.2 9.1 16.0 10.6 4.6
- ------------------------------------------------------------------------------------------------------------------------------------
Cost of products
sold 1,007,200 892,172 820,434 724,753 678,504 672,405 601,322 548,434 450,5277 422,149
Operating
expenses 795,603 732,941 690,584 613,061 612,074 677,468(d) 498,084 458,085 396,910 356,065
Other 44,653 21,163 19,298 21,172 17,382 21,315 (30,755) (28,189) (10,897) (17,588)
- ------------------------------------------------------------------------------------------------------------------------------------
Total costs and
expenses 1,847,456 1,646,276 1,530,316 1,358,986 1,307,960 1,371,188 1,068,651 978,330 836,540 760,626
- ------------------------------------------------------------------------------------------------------------------------------------
Earnings before
income taxes 370,387 337,894 306,633 275,185 239,097 97,182 240,368 220,963 197,207 174,359
Income taxes 148,295 137,062 126,640 107,267 97,903 37,361 87,456 79,718 73,460 75,394
- ------------------------------------------------------------------------------------------------------------------------------------
Earnings from
continuing
operations 222,092 200,832 179,993 167,918 141,194 59,821 152,912 141,245 123,747 98,965
Earnings (losses)
from discontinued
operations - - 32,064(a) (867) (23,429)(b) (7,075) 714 (17,101)(e) 8,823 5,934
Cumulative effect of
accounting
change - - - - (19,061)(c) - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net earnings $ 222,092 $ 200,832 $ 212,057 $ 167,051 $ 98,704 $ 52,746 $ 153,626 $ 124,144 $ 132,570 $104,899
===================================================================================================================================
Percent change,
continuing
operations 10.6 11.6 7.2 18.9 136.0 (60.9) 8.3 14.1 25.0 14.3
Common Stock
Weighted average
shares
outstanding(f) 51,935 53,147 53,800 54,698 54,366 54,063 54,873 55,333 55,127 54,652
Earnings (losses)
per common share:
Earnings from
continuing
operations $ 4.28 $ 3.78 $ 3.35 $ 3.07 $ 2.60 $ 1.11(d)$ 2.79 $ 2.55 $ 2.26 $ 1.82
Earnings (losses)
from
discontinued
operations - - 0.59(a) (0.02) (0.43)(b) (0.13) 0.01 (0.31)(e) 0.16 0.11
Cumulative effect
of accounting
change - - - - (0.35)(c) - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Net earnings $ 4.28 $ 3.78 $ 3.94 $ 3.05 $ 1.82 $ 0.98 $ 2.80 $ 2.24 $ 2.42 $ 1.93
====================================================================================================================================
Dividends $ 2.12 $ 1.92 $ 1.80 $ 1.71 $ 1.59 $ 1.47 $ 1.29 $ 1.09 $ 0.92 $ 0.79
Stockholders'
equity at end
of year 18.20 18.01 17.04 16.03 14.92 14.47 15.00 14.19 13.19 11.51
Other Data
Continuing operations
Working capital
(deficiency) $ (50,041)$ 121,008 $ 128,443 $ 160,208 $ (25,322) $ 115,626 $ 151,602 $ 265,569 $ 145,780 $225,596
Property, plant
and equipment -
net 551,437 524,972 532,600 538,101 508,629 441,794 441,681 348,526 312,068 207,712
Property
additions 84,804 62,911 56,627 72,141 114,353 89,009 134,099 66,551 135,702 48,630
Long-term debt 356,267 253,079 216,088 204,000 203,627 405,341 5,807 5,192 20,739 24,513
Percent return on
net sales 10.0 10.1 9.8 10.3 9.1 4.1 11.7 11.8 12.0 10.6
Current ratio .9 1.3 1.3 1.4 0.9 1.3 1.7 1.9 1.5 2.3
Total assets 2,178,894 1,906,672 1,697,569 1,649,230 1,589,993 1,656,872 1,124,147 1,189,894 1,121,232 911,097
Stockholders'
equity 932,828 943,913 909,417 879,294 813,741 784,276 810,514 786,176 712,854 616,447
Percent return on
average
stockholders'
equity 23.8 21.7 24.2 19.8 12.3 6.4 19.1 16.4 19.9 18.0
====================================================================================================================================
(a) Includes net gain on the sale of discontinued business of $31,430 or
$.58 per share.
(b) Includes special charges for the revaluation of certain intangible assets.
(c) Nonrecurring charge to recognize the accumulated postretirement health
benefit obligation at July 1, 1991, resulting from the adoption of
SFAS No. 106. Operating results preceding 1992 were not restated for the
adoption of this new standard.
(d) Includes a charge for restructuring of $125,250 or $1.45 per share.
(e) Includes net loss on the disposal of Olympic HomeCare Products of
$20,000, or $.36 per share.
(f) Weighted average shares outstanding and earnings per share from 1987
through 1989 assume full dilution from a note converted during 1989.
QUARTERLY DATA
(in thousands, except per-share amounts) 1st quarter 2nd quarter 3rd quarter 4th quarter year
======================================================================================================================
Year Ended June 30, 1996
Net Sales $518,486 $466,789 $560,091 $672,477 $2,217,843
Cost of Products Sold 231,333 213,171 255,570 307,126 1,007,200
Net Earnings 58,779 37,911 59,599 65,803 222,092
Per Common Share
Net Earnings $ 1.12 $ 0.73 $ 1.15 $ 1.28 $ 4.28
Dividends 0.53 0.53 0.53 0.53 2.12
Market Price (NYSE)
High 73 3/8 79 1/4 89 3/8 89 1/8 89 3/8
Low 60 7/8 69 1/4 70 1/4 78 3/8 60 7/8
Year end 88 5/8
Price/earnings ratio, year end 21
Year Ended June 30, 1995
Net Sales $476,367 $414,454 $499,060 $594,289 $1,984,170
Cost of Products Sold 210,134 183,963 225,997 272,078 892,172
Net Earnings 53,181 34,095 54,034 59,522 200,832
Per Common Share
Net Earnings $ 1.00 $ 0.64 $ 1.02 $ 1.13 $ 3.78
Dividends 0.48 0.48 0.48 0.48 1.92
Market Price (NYSE)
High 52 3/4 59 1/2 62 3/8 65 3/4 65 3/4
Low 47 3/4 51 1/4 55 1/4 56 47 3/4
Year end 65 1/4
Price/earnings ratio, year end 17
========================================================================================================================
THE COMPANY'S PRINCIPAL RETAIL BRANDS, PRODUCTS AND MARKETS
United States
Laundry Additives:
Clorox Regular, fresh scent, lemon fresh and floral
fresh liquid bleach
Clorox 2 Regular and lemon fresh dry and liquid
color-safe bleaches
Stain Out Soil and stain remover, liquid and spray
- -------------------------------------------------------------------------
Home Cleaning:
Clorox Toilet
Bowl Toilet bowl cleanser and automatic
toilet bowl cleaner
Clorox Clean-Up Dilutable household cleaner, spray
cleaner and gel
Formula 409 All-purpose spray cleaner, regular, professional strength,
and fresh scent glass & surface cleaner
Lestoil Heavy duty cleaner
Liquid-Plumr Drain opener, regular and professional strength; buildup
remover; and septic system treatment
Pine-Sol Dilutable cleaner, regular and lemon scent; professional
strength; spray cleaner
Soft Scrub Mild abrasive liquid cleanser: regular, lemon,
with bleach, and gel
S.O.S Steel wool soap pads: regular, lemon scent and juniors;
scrubber sponges
Tackle Household cleaner disinfectant
Tilex Instant mildew remover, soap scum remover
Tuffy Mesh scrubber
- -------------------------------------------------------------------------
Charcoal:
BBQ Bag Single-use, lightable bag of charcoal briquets
Kingsford Charcoal briquets, charcoal briquets with
mesquite and charcoal lighter
Match Light Instant lighting charcoal briquets
- -------------------------------------------------------------------------
Insecticides:
Black Flag Insecticides: ant and roach, flying insect and
other aerosols; Roach Motel; room fogger
Combat Insecticides: ant and roach bait stations;
SuperBait roach bait stations; ant granules and stakes;
roach gel; ant and roach aerosols and foggers
Holiday Insecticide: room fogger
- -------------------------------------------------------------------------
Cat Litter:
Control Cat litter
Fresh Step Cat litter
Fresh Step Scoop Scoopable cat litter
- -------------------------------------------------------------------------
Dressings & Sauces:
Hidden Valley Bottled salad dressing, dry salad dressing
and party dip mixes; bottled fat-free salad dressing;
ready-to-eat dips
Hidden Valley
Salad Crispins Seasoned mini-croutons
K.C. Masterpiece Barbecue sauce
Kitchen Bouquet Browning and seasoning sauce and gravy aid
- -------------------------------------------------------------------------
Brita Water filtration systems
=========================================================================
Professional Products
Clorox Germicidal bleach
Clorox Toilet bowl cleanser
Clorox Quat sanitizer and disinfectant
Clorox Clean-Up Dilutable cleaner
Combat Insecticides
Formula 409 All-purpose cleaner, glass & surface cleaner, and heavy
duty degreaser
Hidden Valley Salad dressings
K.C. Masterpiece Barbecue sauce
Kitchen Bouquet Browning and seasoning sauce and gravy aid
Liquid-Plumr Drain opener
Maxforce Professional insecticides: ant and roach baits;
roach gel; ant granules
Pine-Sol Dilutable cleaner
S.O.S Pot & pan detergent, steel wool soap pads
Tilex Instant mildew remover, soap scum remover
=========================================================================
International Markets, excluding export
Argentina
Brazil
Canada
Chile
Colombia
Costa Rica
Czech Republic
Dominican Republic
Egypt
Hong Kong
Hungary
Japan
Malaysia
Mexico
Panama
People's Republic of China
Peru
Poland
Puerto Rico
Republic of Korea
Romania
Saudi Arabia/Gulf States
Singapore
Slovak Republic
Spain
Taiwan
Thailand
Uruguay
Venezuela
Yemen Arab Republic