(Mark One) | ||
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended December 31, 2018. | ||
OR | ||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 31-0595760 |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
incorporation or organization) | |
1221 Broadway | |
Oakland, California | 94612-1888 |
(Address of principal executive offices) | (Zip code) |
(510) 271-7000 |
(Registrant's telephone number, including area code) |
(Former name, former address and former fiscal year, if changed since last report) |
_________________________ |
Large accelerated filer þ | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller Reporting Company ¨ | Emerging Growth Company ¨ |
Three Months Ended | Six Months Ended | |||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | |||||||||||||
Net sales | $ | 1,473 | $ | 1,416 | $ | 3,036 | $ | 2,916 | ||||||||
Cost of products sold | 830 | 807 | 1,715 | 1,634 | ||||||||||||
Gross profit | 643 | 609 | 1,321 | 1,282 | ||||||||||||
Selling and administrative expenses | 211 | 197 | 423 | 401 | ||||||||||||
Advertising costs | 145 | 140 | 284 | 274 | ||||||||||||
Research and development costs | 32 | 31 | 64 | 63 | ||||||||||||
Interest expense | 24 | 20 | 48 | 41 | ||||||||||||
Other (income) expense, net | 7 | (6 | ) | 10 | (3 | ) | ||||||||||
Earnings from continuing operations before income taxes | 224 | 227 | 492 | 506 | ||||||||||||
Income taxes on continuing operations | 42 | (6 | ) | 100 | 81 | |||||||||||
Earnings from continuing operations | 182 | 233 | 392 | 425 | ||||||||||||
Earnings (losses) from discontinued operations, net of tax | — | — | — | — | ||||||||||||
Net earnings | $ | 182 | $ | 233 | $ | 392 | $ | 425 | ||||||||
Net earnings (losses) per share | ||||||||||||||||
Basic | ||||||||||||||||
Continuing operations | $ | 1.42 | $ | 1.81 | $ | 3.07 | $ | 3.29 | ||||||||
Discontinued operations | — | — | — | — | ||||||||||||
Basic net earnings per share | $ | 1.42 | $ | 1.81 | $ | 3.07 | $ | 3.29 | ||||||||
Diluted | ||||||||||||||||
Continuing operations | $ | 1.40 | $ | 1.77 | $ | 3.02 | $ | 3.23 | ||||||||
Discontinued operations | — | — | — | — | ||||||||||||
Diluted net earnings per share | $ | 1.40 | $ | 1.77 | $ | 3.02 | $ | 3.23 | ||||||||
Weighted average shares outstanding (in thousands) | ||||||||||||||||
Basic | 128,068 | 129,359 | 127,955 | 129,189 | ||||||||||||
Diluted | 130,094 | 131,655 | 130,107 | 131,559 | ||||||||||||
Comprehensive income | $ | 152 | $ | 233 | $ | 362 | $ | 444 |
12/31/2018 | 6/30/2018 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 162 | $ | 131 | |||
Receivables, net | 528 | 600 | |||||
Inventories, net | 578 | 506 | |||||
Prepaid expenses and other current assets | 97 | 74 | |||||
Total current assets | 1,365 | 1,311 | |||||
Property, plant and equipment, net of accumulated depreciation and amortization of $2,109 and $2,061, respectively | 992 | 996 | |||||
Goodwill | 1,586 | 1,602 | |||||
Trademarks, net | 792 | 795 | |||||
Other intangible assets, net | 127 | 134 | |||||
Other assets | 211 | 222 | |||||
Total assets | $ | 5,073 | $ | 5,060 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities | |||||||
Notes and loans payable | $ | 235 | $ | 199 | |||
Accounts payable and accrued liabilities | 951 | 1,001 | |||||
Total current liabilities | 1,186 | 1,200 | |||||
Long-term debt | 2,285 | 2,284 | |||||
Other liabilities | 789 | 778 | |||||
Deferred income taxes | 71 | 72 | |||||
Total liabilities | 4,331 | 4,334 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity | |||||||
Preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | — | — | |||||
Common stock: $1.00 par value; 750,000,000 shares authorized; 158,741,461 shares issued as of December 31, 2018 and June 30, 2018; and 128,090,404 and 127,982,767 shares outstanding as of December 31, 2018 and June 30, 2018, respectively | 159 | 159 | |||||
Additional paid-in capital | 1,014 | 975 | |||||
Retained earnings | 2,940 | 2,797 | |||||
Treasury shares, at cost: 30,651,057 and 30,758,694 shares as of December 31, 2018 and June 30, 2018, respectively | (2,794 | ) | (2,658 | ) | |||
Accumulated other comprehensive net (loss) income | (577 | ) | (547 | ) | |||
Stockholders’ equity | 742 | 726 | |||||
Total liabilities and stockholders’ equity | $ | 5,073 | $ | 5,060 |
Six Months Ended | |||||||
12/31/2018 | 12/31/2017 | ||||||
(As Adjusted*) | |||||||
Operating activities: | |||||||
Net earnings | $ | 392 | $ | 425 | |||
Deduct: Losses from discontinued operations, net of tax | — | — | |||||
Earnings from continuing operations | 392 | 425 | |||||
Adjustments to reconcile earnings from continuing operations to net cash provided by continuing operations: | |||||||
Depreciation and amortization | 88 | 81 | |||||
Stock-based compensation | 18 | 23 | |||||
Deferred income taxes | 2 | (37 | ) | ||||
Other | 25 | 30 | |||||
Changes in: | |||||||
Receivables, net | 68 | 31 | |||||
Inventories, net | (74 | ) | (40 | ) | |||
Prepaid expenses and other current assets | (15 | ) | (5 | ) | |||
Accounts payable and accrued liabilities | (43 | ) | (113 | ) | |||
Income taxes payable | (12 | ) | (71 | ) | |||
Net cash provided by continuing operations | 449 | 324 | |||||
Net cash provided by discontinued operations | — | — | |||||
Net cash provided by operations | 449 | 324 | |||||
Investing activities: | |||||||
Capital expenditures | (86 | ) | (89 | ) | |||
Other | 9 | 15 | |||||
Net cash used for investing activities | (77 | ) | (74 | ) | |||
Financing activities: | |||||||
Notes and loans payable, net | 33 | 88 | |||||
Long-term debt borrowings, net of issuance costs | — | 396 | |||||
Long-term debt repayments | — | (400 | ) | ||||
Treasury stock purchased | (243 | ) | (70 | ) | |||
Cash dividends paid | (245 | ) | (217 | ) | |||
Issuance of common stock for employee stock plans and other | 117 | 26 | |||||
Net cash used for financing activities | (338 | ) | (177 | ) | |||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (3 | ) | — | ||||
Net increase in cash, cash equivalents, and restricted cash | 31 | 73 | |||||
Cash, cash equivalents, and restricted cash: | |||||||
Beginning of period | 134 | 419 | |||||
End of period | $ | 165 | $ | 492 |
Nutranext | |||
Goodwill ($309 in Lifestyle reportable segment and $102 in Household reportable segment) | $ | 411 | |
Trademarks | 143 | ||
Customer relationships | 75 | ||
Property, plant and equipment | 49 | ||
Working capital, net | 23 | ||
Deferred income taxes | (20 | ) | |
Consideration paid | $ | 681 |
12/31/2018 | 6/30/2018 | ||||||
Finished goods | $ | 467 | $ | 395 | |||
Raw materials and packaging | 135 | 129 | |||||
Work in process | 7 | 9 | |||||
LIFO allowances | (31 | ) | (27 | ) | |||
Total | $ | 578 | $ | 506 |
Gains (losses) recognized in Other comprehensive income | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||
Commodity purchase derivative contracts | $ | (10 | ) | $ | 1 | $ | (6 | ) | $ | 3 | |||||
Foreign exchange derivative contracts | 1 | 1 | 1 | — | |||||||||||
Interest rate derivative contracts | — | — | — | 2 | |||||||||||
Total | $ | (9 | ) | $ | 2 | $ | (5 | ) | $ | 5 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||
Commodity purchase derivative contracts | $ | (4 | ) | $ | — | $ | — | $ | — | ||||||
Foreign exchange derivative contracts | — | — | 1 | (1 | ) | ||||||||||
Interest rate derivative contracts | (1 | ) | (2 | ) | (3 | ) | (4 | ) | |||||||
Total | $ | (5 | ) | $ | (2 | ) | $ | (2 | ) | $ | (5 | ) |
12/31/2018 | 6/30/2018 | ||||||||||||||||||
Balance sheet classification | Fair value hierarchy level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Investments, including money market funds | Cash and cash equivalents (a) | 1 | $ | 43 | $ | 43 | $ | 24 | $ | 24 | |||||||||
Time deposits | Cash and cash equivalents (a) | 2 | 27 | 27 | 23 | 23 | |||||||||||||
Commodity purchase swaps contracts | Prepaid expenses and other current assets | 2 | — | — | 3 | 3 | |||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other current assets | 2 | 2 | 2 | 2 | 2 | |||||||||||||
Trust assets for nonqualified deferred compensation plans | Other assets | 1 | 85 | 85 | 86 | 86 | |||||||||||||
$ | 157 | $ | 157 | $ | 138 | $ | 138 | ||||||||||||
Liabilities | |||||||||||||||||||
Notes and loans payable | Notes and loans payable (b) | 2 | $ | 235 | $ | 235 | $ | 199 | $ | 199 | |||||||||
Commodity purchase futures contracts | Accounts payable and accrued liabilities | 1 | 1 | 1 | 1 | 1 | |||||||||||||
Commodity purchase swaps contracts | Accounts payable and accrued liabilities | 2 | 1 | 1 | — | — | |||||||||||||
Commodity purchase swaps contracts | Other liabilities | 2 | 1 | 1 | — | — | |||||||||||||
Current maturities of long-term debt and Long-term debt | Current maturities of long- term debt and Long-term debt (c) | 2 | 2,285 | 2,281 | 2,284 | 2,269 | |||||||||||||
$ | 2,523 | $ | 2,519 | $ | 2,484 | $ | 2,469 |
(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 loans payable is composed of U.S. commercial paper and/or other similar short-term debt 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. |
Adjustments | ||||
One-time net deferred tax liability reduction | $ | 60 | ||
One-time transition tax | (7 | ) | ||
Net total one-time tax benefit | 53 | |||
Beneficial year-to-date current taxable income impact | 28 | |||
Total tax benefits | $ | 81 |
Three Months Ended | Six Months Ended | ||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||
Basic | 128,068 | 129,359 | 127,955 | 129,189 | |||||
Dilutive effect of stock options and other | 2,026 | 2,296 | 2,152 | 2,370 | |||||
Diluted | 130,094 | 131,655 | 130,107 | 131,559 | |||||
Antidilutive stock options and other | 1 | 1,223 | 831 | 1,223 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||||||||||||||
Amount | Shares (in thousands) | Amount | Shares (in thousands) | Amount | Shares (in thousands) | Amount | Shares (in thousands) | ||||||||||||||||||||
Open-market purchase program | $ | — | — | $ | — | — | $ | 78 | 591 | $ | — | — | |||||||||||||||
Evergreen Program | 38 | 253 | 3 | 26 | 158 | 1,085 | 63 | 476 | |||||||||||||||||||
Total stock repurchases | $ | 38 | 253 | $ | 3 | 26 | $ | 236 | 1,676 | $ | 63 | 476 |
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||
Dividends per share declared | $ | 0.96 | $ | 0.84 | $ | 1.92 | $ | 1.68 |
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||
Earnings from continuing operations | $ | 182 | $ | 233 | $ | 392 | $ | 425 | |||||||
Earnings (losses) from discontinued operations, net of tax | — | — | — | — | |||||||||||
Net earnings | 182 | 233 | 392 | 425 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | (29 | ) | (4 | ) | (31 | ) | 10 | ||||||||
Net unrealized gains (losses) on derivatives | (2 | ) | 3 | (1 | ) | 8 | |||||||||
Pension and postretirement benefit adjustments | 1 | 1 | 2 | 1 | |||||||||||
Total other comprehensive income (loss), net of tax | (30 | ) | — | (30 | ) | 19 | |||||||||
Comprehensive income | $ | 152 | $ | 233 | $ | 362 | $ | 444 |
Foreign currency translation adjustments | Net unrealized gains (losses) on derivatives | Pension and postretirement benefit adjustments | Accumulated other comprehensive (loss) income | ||||||||||||
Balance as of June 30, 2017 | $ | (356 | ) | $ | (37 | ) | $ | (150 | ) | $ | (543 | ) | |||
Other comprehensive income (loss) before reclassifications | 13 | 5 | — | 18 | |||||||||||
Amounts reclassified from Accumulated other comprehensive net (loss) income | — | 5 | 3 | 8 | |||||||||||
Income tax benefit (expense) | (3 | ) | (2 | ) | (2 | ) | (7 | ) | |||||||
Net current period other comprehensive income (loss) | 10 | 8 | 1 | 19 | |||||||||||
Balance as of December 31, 2017 | $ | (346 | ) | $ | (29 | ) | $ | (149 | ) | $ | (524 | ) | |||
Balance as of June 30, 2018 | $ | (384 | ) | $ | (25 | ) | $ | (138 | ) | $ | (547 | ) | |||
Other comprehensive income (loss) before reclassifications | (30 | ) | (5 | ) | — | (35 | ) | ||||||||
Amounts reclassified from Accumulated other comprehensive net (loss) income | — | 2 | 3 | 5 | |||||||||||
Income tax benefit (expense) | (1 | ) | 2 | (1 | ) | — | |||||||||
Net current period other comprehensive income (loss) | (31 | ) | (1 | ) | 2 | (30 | ) | ||||||||
Balance as of December 31, 2018 | $ | (415 | ) | $ | (26 | ) | $ | (136 | ) | $ | (577 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | |||||||
Interest cost | 6 | 5 | 12 | 11 | |||||||||||
Expected return on plan assets (1) | (5 | ) | (4 | ) | (9 | ) | (9 | ) | |||||||
Amortization of unrecognized items | 3 | 2 | 5 | 5 | |||||||||||
Total | $ | 4 | $ | 3 | $ | 8 | $ | 7 |
Net sales | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | |||||||||||||
Cleaning | $ | 500 | $ | 472 | $ | 1,071 | $ | 1,031 | ||||||||
Household | 393 | 410 | 835 | 851 | ||||||||||||
Lifestyle | 335 | 268 | 644 | 514 | ||||||||||||
International | 245 | 266 | 486 | 520 | ||||||||||||
Corporate | — | — | — | — | ||||||||||||
Total | $ | 1,473 | $ | 1,416 | $ | 3,036 | $ | 2,916 | ||||||||
Earnings (losses) from continuing operations before income taxes | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | |||||||||||||
Cleaning | $ | 135 | $ | 121 | $ | 315 | $ | 293 | ||||||||
Household | 46 | 54 | 105 | 127 | ||||||||||||
Lifestyle | 78 | 69 | 140 | 133 | ||||||||||||
International | 25 | 23 | 53 | 46 | ||||||||||||
Corporate | (60 | ) | (40 | ) | (121 | ) | (93 | ) | ||||||||
Total | $ | 224 | $ | 227 | $ | 492 | $ | 506 |
Net sales | ||||||||||||
Three months ended | Six months ended | |||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | |||||||||
Home care | 19 | % | 19 | % | 20 | % | 20 | % | ||||
Laundry | 9 | % | 9 | % | 9 | % | 9 | % | ||||
Professional products | 6 | % | 5 | % | 6 | % | 6 | % | ||||
Cleaning | 34 | % | 33 | % | 35 | % | 35 | % | ||||
Bags, wraps, containers | 13 | % | 15 | % | 14 | % | 15 | % | ||||
Cat litter | 8 | % | 7 | % | 7 | % | 7 | % | ||||
Charcoal | 3 | % | 5 | % | 5 | % | 5 | % | ||||
Digestive health | 2 | % | 2 | % | 2 | % | 2 | % | ||||
Household | 26 | % | 29 | % | 28 | % | 29 | % | ||||
Food products | 10 | % | 10 | % | 9 | % | 9 | % | ||||
Natural personal care | 6 | % | 6 | % | 5 | % | 5 | % | ||||
Water filtration | 3 | % | 3 | % | 3 | % | 4 | % | ||||
Dietary supplements (1) | 4 | % | — | % | 4 | % | — | % | ||||
Lifestyle | 23 | % | 19 | % | 21 | % | 18 | % | ||||
International | 17 | % | 19 | % | 16 | % | 18 | % | ||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
• | 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 and food service products under the Clorox®, Dispatch®, HealthLink®, Clorox Healthcare®, Hidden Valley®, KC Masterpiece® and Soy Vay® 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, natural personal care products, and dietary supplements primarily 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; natural personal care products under the Burt’s Bees® brand; and dietary supplements under the Rainbow Light®, Natural Vitality® and Neocell® brands. |
• | 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 and 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® and Clorox Healthcare® brands. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
12/31/2018 | 12/31/2017 | % Change | 12/31/2018 | 12/31/2017 | % Change | ||||||||||||||||
Net sales | $ | 1,473 | $ | 1,416 | 4 | % | $ | 3,036 | $ | 2,916 | 4 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
12/31/2018 | 12/31/2017 | % Change | 12/31/2018 | 12/31/2017 | % Change | ||||||||||||||||
Gross profit | $ | 643 | $ | 609 | 6 | % | $ | 1,321 | $ | 1,282 | 3 | % | |||||||||
Gross margin | 43.7 | % | 43.0 | % | 43.5 | % | 44.0 | % |
Three Months Ended | ||||||||||||||||
% of Net Sales | ||||||||||||||||
12/31/2018 | 12/31/2017 | % Change | 12/31/2018 | 12/31/2017 | ||||||||||||
Selling and administrative expenses | $ | 211 | $ | 197 | 7 | % | 14.3 | % | 13.9 | % | ||||||
Advertising costs | 145 | 140 | 4 | 9.8 | 9.9 | |||||||||||
Research and development costs | 32 | 31 | 3 | 2.2 | 2.2 | |||||||||||
Six Months Ended | ||||||||||||||||
% of Net Sales | ||||||||||||||||
12/31/2018 | 12/31/2017 | % Change | 12/31/2018 | 12/31/2017 | ||||||||||||
Selling and administrative expenses | $ | 423 | $ | 401 | 5 | % | 13.9 | % | 13.8 | % | ||||||
Advertising costs | 284 | 274 | 4 | 9.4 | 9.4 | |||||||||||
Research and development costs | 64 | 63 | 2 | 2.1 | 2.2 |
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||
Interest expense | $ | 24 | $ | 20 | $ | 48 | $ | 41 | |||||||
Other (income) expense, net | 7 | (6 | ) | 10 | (3 | ) | |||||||||
Effective tax rate on earnings | 18.8 | % | (3.1 | )% | 20.2 | % | 15.9 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
12/31/2018 | 12/31/2017 | % Change | 12/31/2018 | 12/31/2017 | % Change | ||||||||||||||||
Diluted net earnings per share from continuing operations | $ | 1.40 | $ | 1.77 | (21 | )% | $ | 3.02 | $ | 3.23 | (7 | )% |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
12/31/2018 | 12/31/2017 | % Change | 12/31/2018 | 12/31/2017 | % Change | ||||||||||||||||
Net sales | $ | 500 | $ | 472 | 6 | % | $ | 1,071 | $ | 1,031 | 4 | % | |||||||||
Earnings from continuing operations before income taxes | 135 | 121 | 12 | 315 | 293 | 8 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
12/31/2018 | 12/31/2017 | % Change | 12/31/2018 | 12/31/2017 | % Change | ||||||||||||||||
Net sales | $ | 393 | $ | 410 | (4 | )% | $ | 835 | $ | 851 | (2 | )% | |||||||||
Earnings from continuing operations before income taxes | 46 | 54 | (15 | ) | 105 | 127 | (17 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
12/31/2018 | 12/31/2017 | % Change | 12/31/2018 | 12/31/2017 | % Change | ||||||||||||||||
Net sales | $ | 335 | $ | 268 | 25 | % | $ | 644 | $ | 514 | 25 | % | |||||||||
Earnings from continuing operations before income taxes | 78 | 69 | 13 | 140 | 133 | 5 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
12/31/2018 | 12/31/2017 | % Change | 12/31/2018 | 12/31/2017 | % Change | ||||||||||||||||
Net sales | $ | 245 | $ | 266 | (8 | )% | $ | 486 | $ | 520 | (7 | )% | |||||||||
Earnings from continuing operations before income taxes | 25 | 23 | 9 | 53 | 46 | 15 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
12/31/2018 | 12/31/2017 | % Change | 12/31/2018 | 12/31/2017 | % Change | ||||||||||||||||
Losses from continuing operations before income taxes | $ | (60 | ) | $ | (40 | ) | 50 | % | $ | (121 | ) | $ | (93 | ) | 30 | % |
Six Months Ended | |||||||
12/31/2018 | 12/31/2017 | ||||||
Net cash provided by continuing operations | $ | 449 | $ | 324 | |||
Net cash used for investing activities | (77 | ) | (74 | ) | |||
Net cash used for financing activities | (338 | ) | (177 | ) |
Twelve Months Ended | |||
12/31/2018 | |||
Earnings from continuing operations | $ | 790 | |
Add back: | |||
Interest expense | 92 | ||
Income tax expense | 250 | ||
Depreciation and amortization | 173 | ||
Non-cash asset impairment charges | — | ||
Deduct: | |||
Interest income | (4 | ) | |
Consolidated EBITDA | $ | 1,301 | |
Interest expense | $ | 92 | |
Interest Coverage ratio | 14.1 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||||||||||||||
Amount | Shares (in thousands) | Amount | Shares (in thousands) | Amount | Shares (in thousands) | Amount | Shares (in thousands) | ||||||||||||||||||||
Open-market purchase program | $ | — | — | $ | — | — | $ | 78 | 591 | $ | — | — | |||||||||||||||
Evergreen Program | 38 | 253 | 3 | 26 | 158 | 1,085 | 63 | 476 | |||||||||||||||||||
Total stock repurchases | $ | 38 | 253 | $ | 3 | 26 | $ | 236 | 1,676 | $ | 63 | 476 |
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||
Dividends per share declared | $ | 0.96 | $ | 0.84 | $ | 1.92 | $ | 1.68 | |||||||
Total dividends paid | 123 | 109 | 245 | 217 |
• | intense competition in the Company’s markets; |
• | the impact of the changing retail environment, including the growth of e-commerce retailers, hard discounters and other alternative retail channels; |
• | volatility and increases in commodity costs such as resin, sodium hypochlorite and agricultural commodities, and increases in energy, transportation or other costs; |
• | the ability of the Company to drive sales growth, increase prices and market share, grow its product categories and manage favorable product and geographic mix; |
• | dependence on key customers and risks related to customer consolidation and ordering patterns; |
• | risks related to the Company's use of and reliance on information technology systems, including potential security breaches, cyber-attacks, privacy breaches or data breaches that result in the unauthorized disclosure of consumer, customer, employee or Company information, or service interruptions; |
• | the Company's ability to maintain its business reputation and the reputation of its brands; |
• | risks relating to acquisitions, new ventures and divestitures, and associated costs, including the potential for asset impairment charges related to, among others, intangible assets and goodwill; and the ability to complete announced transactions and, if completed, integration costs and potential contingent liabilities related to those transactions, including those related to the Nutranext acquisition; |
• | lower revenue or increased costs resulting from government actions and regulations, including as a result of a prolonged U.S. government shutdown; |
• | the ability of the Company to successfully manage global political, legal, tax and regulatory risks, including changes in regulatory or administrative activity and as a result of the Nutranext acquisition; |
• | worldwide, regional and local economic and financial market conditions; |
• | risks related to international operations and international trade, including political instability; government-imposed price controls or other regulations; foreign currency fluctuations, including devaluation, and foreign currency exchange rate controls, including periodic changes in such controls; changes in U.S. immigration or trade policies, including tariffs, labor claims, labor unrest and inflationary pressures, particularly in Argentina; potential negative impact and liabilities from the use, storage and transportation of chlorine in certain international markets where chlorine is used in the production of bleach; and the possibility of nationalization, expropriation of assets or other government action; |
• | the ability of the Company to innovate and to develop and introduce commercially successful products; |
• | the impact of product liability claims, labor claims and other legal or tax proceedings, including in foreign jurisdictions; |
• | the ability of the Company to implement and generate cost savings and efficiencies; |
• | the success of the Company’s business strategies; |
• | risks related to additional increases in the estimated fair value of The Procter & Gamble Company's (P&G) interest in the Glad® business such as the significant increases over fiscal year 2018 primarily due to the Tax Act and the extension of the venture agreement with, and the related R&D support provided by, P&G; |
• | the Company's ability to attract and retain key personnel; |
• | supply disruptions and other risks inherent in reliance on a limited base of suppliers; |
• | environmental matters, including costs associated with the remediation and monitoring of past contamination, and possible increases in costs resulting from actions by relevant regulators, and the handling and/or transportation of hazardous substances; |
• | the impact of natural disasters, terrorism and other events beyond the Company’s control; |
• | the Company’s ability to maximize, assert and defend its intellectual property rights; |
• | any infringement or claimed infringement by the Company of third-party intellectual property rights; |
• | the on-going effects of the Tax Act on the Company, including as a result of any additional Congressional, administrative or other actions, or other guidance related to the Tax Act; |
• | uncertainties relating to tax positions, tax disputes and changes in the Company’s tax rate; |
• | the effect of the Company’s indebtedness and credit rating on its business operations and financial results; |
• | the Company’s ability to pay and declare dividends or repurchase its stock in the future; |
• | the Company’s ability to maintain an effective system of internal controls; |
• | the impacts of potential stockholder activism; |
• | the accuracy of the Company’s estimates and assumptions on which its financial projections are based; and |
• | risks related to the Company’s discontinuation of operations in Venezuela. |
[a] | [b] | [c] | [d] | ||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||
October 1 to 31, 2018 | 251,309 | $ | 147.11 | 251,309 | $1,827 million | ||||||
November 1 to 30, 2018 | 2,400 | 149.07 | 2,400 | $1,827 million | |||||||
December 1 to 31, 2018 | — | — | — | $1,827 million | |||||||
Total | 253,709 | $ | 147.13 | 253,709 |
(1) | All of the shares purchased in October and November 2018 were acquired pursuant to the Company’s Evergreen Program. |
(2) | Average price paid per share in the period includes commission. |
101 | The following materials from The Clorox Company’s Quarterly Report on Form 10-Q for the period ended December 31, 2018, are formatted in eXtensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Earnings and Comprehensive Income, (ii) the Condensed Consolidated Balance Sheets, (iii) the Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Condensed Consolidated Financial Statements. |
THE CLOROX COMPANY | ||
(Registrant) | ||
DATE: February 4, 2019 | BY | /s/ Jeffrey R. Baker |
Jeffrey R. Baker Vice President – Chief Accounting Officer and Corporate Controller |
1. | I have reviewed this quarterly report on Form 10-Q of The Clorox Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: February 4, 2019 |
/s/ Benno Dorer |
Benno Dorer |
Chairman and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of The Clorox Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: February 4, 2019 |
/s/ Kevin B. Jacobsen |
Kevin B. Jacobsen |
Executive Vice President - Chief Financial Officer |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated. |
/s/ Benno Dorer |
Benno Dorer |
Chairman and Chief Executive Officer |
/s/ Kevin B. Jacobsen |
Kevin B. Jacobsen |
Executive Vice President - Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Jan. 18, 2019 |
|
Document And Entity Information | ||
Entity Registrant Name | CLOROX CO /DE/ | |
Entity Central Index Key | 0000021076 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 128,164,289 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
||||
Income Statement [Abstract] | |||||||
Net sales | $ 1,473 | $ 1,416 | $ 3,036 | $ 2,916 | |||
Cost of products sold | 830 | 807 | 1,715 | 1,634 | |||
Gross profit | 643 | 609 | 1,321 | 1,282 | |||
Selling and administrative expenses | 211 | 197 | 423 | 401 | |||
Advertising costs | 145 | 140 | 284 | 274 | |||
Research and development costs | 32 | 31 | 64 | 63 | |||
Interest expense | 24 | 20 | 48 | 41 | |||
Other (income) expense, net | 7 | (6) | 10 | (3) | |||
Earnings from continuing operations before income taxes | 224 | 227 | 492 | 506 | |||
Income taxes on continuing operations | 42 | (6) | 100 | 81 | |||
Earnings from continuing operations | 182 | 233 | 392 | 425 | [1] | ||
Earnings (losses) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | [1] | ||
Net earnings | $ 182 | $ 233 | $ 392 | $ 425 | [1] | ||
Net earnings (losses) per share, Basic | |||||||
Continuing operations, basic (in dollars per share) | $ 1.42 | $ 1.81 | $ 3.07 | $ 3.29 | |||
Discontinued operations, basic (in dollars per share) | 0.00 | 0.00 | 0.00 | 0.00 | |||
Basic net earnings per share (in dollars per share) | 1.42 | 1.81 | 3.07 | 3.29 | |||
Net earnings (losses) per share, Diluted | |||||||
Continuing operations, diluted (in dollars per share) | 1.40 | 1.77 | 3.02 | 3.23 | |||
Discontinued operations, diluted (in dollars per share) | 0.00 | 0.00 | 0.00 | 0.00 | |||
Diluted net earnings per share (in dollars per share) | $ 1.40 | $ 1.77 | $ 3.02 | $ 3.23 | |||
Weighted average shares outstanding (in thousands) | |||||||
Basic (in shares) | 128,068 | 129,359 | 127,955 | 129,189 | |||
Diluted (in shares) | 130,094 | 131,655 | 130,107 | 131,559 | |||
Comprehensive income | $ 152 | $ 233 | $ 362 | $ 444 | |||
|
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2018 |
Jun. 30, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation and amortization | $ 2,109 | $ 2,061 |
Preferred stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
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) | $ 1.00 | $ 1.00 |
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) | 128,090,404 | 127,982,767 |
Treasury stock, shares (in shares) | 30,651,057 | 30,758,694 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended |
---|---|
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim condensed consolidated financial statements for the three and six months ended December 31, 2018 and 2017, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its subsidiaries (the Company) for the periods presented. However, the financial results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain prior year reclassifications were made in the condensed consolidated statements of cash flows to conform to the current year presentation. The information in this report should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2018, which includes a complete set of footnote disclosures, including the Company’s significant accounting policies. Revenue Recognition Revenue is recognized when performance obligations under the terms of the contracts with customers are satisfied. The Company's performance obligation generally consists of the promise to sell finished products to wholesalers, distributors, retailers or consumers. Control of finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. Once control is transferred to the customer, the Company has completed its performance obligation, and revenue is recognized. After completion of the performance obligation, there is an unconditional right to consideration as outlined in the contract. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. The Company typically collects its customer receivables within two months. All performance obligations under the terms of contracts with customers have an original duration of one year or less. 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, which 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. The costs of such activities, defined as variable consideration under Topic 606 of the Accounting Standards Codification, "Revenue from Contracts with Customers," are netted against sales and recorded when the related sale takes place. The accruals for trade promotion programs and consumer coupon liabilities are established based on the Company’s best estimate of the amounts necessary to settle future and existing obligations for products sold as of the balance sheet date. The Company uses forecasted appropriations, historical trend analysis, and customer and sales organization inputs in determining the accruals for promotional activities, and uses historical trend experience and coupon redemption estimates for the coupon accrual requirements. The Company provides an allowance for doubtful accounts based on its historical experience and ongoing assessment of its customers’ credit risk and aging. Receivables are presented net of the allowance for doubtful accounts. Foreign Currency Transactions and Translation Effective July 1, 2018, under the requirements of U.S. GAAP, Argentina was designated as a highly inflationary economy, since it has experienced cumulative inflation of approximately 100 percent or more over a three-year period. As a result, beginning July 1, 2018, the U.S. dollar replaced the Argentine peso as the functional currency of the Company’s subsidiaries in Argentina (collectively, "Clorox Argentina"). Consequently, gains and losses from non-U.S. dollar denominated monetary assets and liabilities for Clorox Argentina are recognized in Other (income) expense, net in the condensed consolidated statement of earnings. Recently Issued Accounting Standards Recently Issued Accounting Standards Not Yet Adopted In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which amends its guidance to allow a reclassification from Accumulated Other Comprehensive Income to Retained Earnings for the stranded income tax effects resulting from The Tax Cuts and Jobs Act of 2017 (the Tax Act). The amendments are 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 August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the hedge accounting recognition and presentation requirements to better align an entity’s risk management activities with its financial reporting. This standard also simplifies the application of hedge accounting in certain situations. 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 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. In July 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842), Targeted Improvements," which provides an optional transition method in applying the new lease standard. Topic 842 can be applied using either a modified retrospective approach at the beginning of the earliest period presented, or, as permitted by ASU 2018-11, at the beginning of the period in which it is adopted. The Company will adopt the new standard on July 1, 2019, on a modified retrospective basis using the optional transition method, and, accordingly, will not restate comparative periods. The Company has initiated its plan for the adoption and implementation of this new accounting standard, including assessing its lease arrangements and implementing software to meet the reporting and disclosure requirements of this standard. Additionally, the Company is in the process of identifying changes to its business processes and controls to support the adoption and is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. Refer to Note 12 of the Notes to Consolidated Financial Statements in Form 10-K for the fiscal year ended June 30, 2018 for the future minimum annual lease payments required under the Company’s existing non-cancelable operating and capital lease arrangements as of June 30, 2018. Recently Adopted Accounting Standards 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 Company adopted the new guidance on a modified retrospective basis effective July 1, 2018, and does not expect the guidance to have a material impact on the Company's annual consolidated financial statements. However, there will be an impact on the Company’s financial results in the interim periods due to the timing of recognition for certain trade promotion spending. Due to a change in the timing of recognition for certain trade promotion spending, the Company recorded an immaterial cumulative effect of initially applying the new guidance as an adjustment to the fiscal year 2019 opening balance of Retained earnings. Results for periods beginning on or after July 1, 2018 are recognized and presented in accordance with Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with the prior accounting guidance under Topic 605, "Revenue Recognition." The Company has made changes to its accounting policies, business processes, systems and controls to align with the new revenue recognition guidance and disclosure requirements. In March 2017, the FASB issued 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. The Company adopted this new guidance in the first quarter of fiscal year 2019 and the adoption did not have a material impact on the Company's consolidated financial statements. Following the adoption of this guidance, the Company records the non-service cost components of net periodic benefit cost in Other (income) expense, net. In March 2018, the FASB issued ASU No. 2018-05, “Income Taxes (Topic 740)-Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” which amends its guidance to address the initial accounting for the income tax effects of the Tax Act, which was enacted on December 22, 2017 (enactment date). This new guidance allows reasonable estimates of income tax effects to be reported as provisional amounts during the measurement period, which is one year from the enactment date, when the necessary information is not available, prepared, or analyzed in sufficient detail to complete the accounting. The amendments also added specific disclosure requirements. The Company adopted this new guidance and initially recorded $81 of provisional benefits in the second quarter of fiscal year 2018. Refer to Note 6 for more information. |
BUSINESS ACQUIRED |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||
BUSINESS ACQUIRED | BUSINESS ACQUIRED On April 2, 2018, the Company acquired 100 percent of Nutranext, a health and wellness company based in Sunrise, Florida. Nutranext manufactures and markets leading dietary supplement brands in the retail and e-commerce channels as well as in its direct-to-consumer business. The purchase of the business reflects the Company's strategy to acquire leading brands in fast-growing categories with attractive gross margins and a focus on health and wellness. The total consideration paid of $681, which included post-closing working capital and other adjustments, was initially funded through commercial paper borrowings and subsequently repaid using a combination of long-term debt financing and cash repatriated from foreign subsidiaries. The assets and liabilities of Nutranext were recorded at their respective estimated fair value as of the acquisition date using U.S. GAAP for business combinations. The excess of the purchase price over the fair value of the net identifiable assets acquired has been allocated to goodwill in the Lifestyle and Household reportable segments of $309 and $102, respectively. The goodwill of $411 is primarily attributable to the synergies, including those with the digestive health business, expected to arise after the acquisition and reflects the value of further expanding the Company’s portfolio into the health and wellness arena. Of the total goodwill, $363 is expected to be deductible for tax purposes. The following table summarizes the estimated fair value of Nutranext's assets acquired and liabilities assumed and the related deferred income taxes as of the acquisition date. Due to the timing of the acquisition, the fair value of the assets acquired and liabilities assumed are based on a preliminary valuation and the Company’s estimates and assumptions are subject to change within the measurement period. The primary areas of the purchase price that are not yet finalized are related to goodwill and income taxes. The weighted-average estimated useful life of intangible assets subject to amortization is 15 years.
Effective April 2, 2018, Nutranext was consolidated into the Company's results of operations. Results for Nutranext's global business are reflected in the Lifestyle reportable segment. Pro forma results reflecting the acquisition were not presented because the acquisition did not meet the threshold requirements for additional disclosure. |
DISCONTINUED OPERATIONS |
6 Months Ended |
---|---|
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On September 22, 2014, the Company's Venezuela affiliate, Corporación Clorox de Venezuela S.A. (Clorox Venezuela) announced that it was discontinuing its operations, effective immediately, and seeking to sell its assets. Since fiscal year 2012, Clorox Venezuela has been 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 condensed consolidated financial statements for all periods presented. The results of Clorox Venezuela had historically been part of the International reportable segment. There were no net sales for each of the three and six months ended December 31, 2018 and 2017, and losses from discontinued operations, net of tax were insignificant for these same periods. |
INVENTORIES, NET |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES, NET | INVENTORIES, NET Inventories, net, consisted of the following as of:
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS |
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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 the Chicago Board of Trade commodity futures exchange and commodity derivative dealers. As of December 31, 2018, the notional amount of commodity derivatives was $34, of which $23 related to soybean oil futures used for the food business and $11 related to jet fuel swaps used for the charcoal business. As of June 30, 2018, the notional amount of commodity derivatives was $34, of which $24 related to soybean oil futures and $10 related to jet fuel swaps. 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 $43 as of December 31, 2018, and $50 as of June 30, 2018. 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. These interest rate forward contracts generally have durations of less than 12 months. The interest rate contracts are measured at fair value using information quoted by U.S. government bond dealers. As of December 31, 2018 and June 30, 2018, the Company had no outstanding interest rate forward contracts. Commodity, Foreign Exchange and Interest Rate Derivatives The Company designates its commodity forward and future contracts for forecasted purchases of raw materials, foreign currency forward contracts for forecasted purchases of inventory, and interest rate forward contracts for forecasted interest payments as cash flow hedges. The effects of derivative instruments designated as hedging instruments on Other comprehensive income and Net earnings were as follows:
The gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings during the three and six months ended December 31, 2018 and 2017, for commodity purchase and foreign exchange contracts were included in Cost of products sold, and for interest rate contracts were included in Interest expense. The estimated amount of the existing net gain (loss) in Accumulated other comprehensive net (loss) income as of December 31, 2018, 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 the three and six months ended December 31, 2018 and 2017, 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 instrument exceeds contractually defined counterparty liability position limits. Of the over-the-counter derivative instruments in liability positions held as of December 31, 2018 and June 30, 2018, $1 and $0, respectively, contained such terms. As of December 31, 2018 and June 30, 2018, 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 of the Company and its counterparties, as assigned by Standard & Poor’s and Moody’s, 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 December 31, 2018 and June 30, 2018, the Company and each of its counterparties had been assigned investment grade credit 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 December 31, 2018 and June 30, 2018, the Company maintained cash margin balances related to exchange-traded futures contracts of $2, which are classified as Prepaid expenses and other current assets in the condensed consolidated balance sheets. Trust Assets The Company has held interests in mutual funds and cash equivalents as part of the 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 to invest their compensation deferrals in accordance with the terms of the plans and within the confines of the trusts, which hold the marketable securities. The trusts represent variable interest entities for which the Company is considered the primary beneficiary, and, therefore, trust assets are consolidated and included in Other assets in the condensed consolidated balance sheets. The interests in mutual funds are measured at fair value using quoted market prices. The Company has designated these marketable securities as trading investments. Fair Value Measurements Financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of December 31, 2018 and June 30, 2018, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis 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 the Company’s assets and liabilities for which disclosure of fair value is required:
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES In determining its quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The effective tax rate on earnings from continuing operations was 18.8% and 20.2% for the three and six months ended December 31, 2018, respectively, and (3.1)% and 15.9% for the three and six months ended December 31, 2017 (prior periods), respectively. The lower effective tax rates on earnings from continuing operations for the prior periods were primarily due to one-time tax benefits from the enactment of the Tax Act during the second quarter of fiscal year 2018. The Tax Act was signed into law by the President of the United States on December 22, 2017. The Tax Act made significant changes to U.S. tax law, and included a reduction of U.S. corporation statutory income tax rates from 35% to 21% effective January 1, 2018. Under the Tax Act, the Company was subject to an average federal statutory tax rate of 28.1% for its fiscal year ended June 30, 2018. The Company’s federal statutory tax rate was 21.0% beginning in July 2018 for the fiscal year ending June 30, 2019. The Tax Act also included, among other things, a one-time transition tax on accumulated foreign earnings and the adoption of a modified territorial approach to the taxation of future foreign earnings. During the second quarter of fiscal year 2018, the Company made reasonable estimates of the impacts of the Tax Act and initially recorded total benefits of $81 as provisional, as defined in Staff Accounting Bulletin No. 118, as follows:
As of December 31, 2018, the Company completed its accounting for all of the enactment-date income tax effects of the Tax Act. Cumulative measurement adjustments through the second quarter of fiscal year 2019 were insignificant. |
NET EARNINGS PER SHARE (EPS) |
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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:
The Company has two stock repurchase programs: an open-market purchase program with an authorized aggregate purchase amount of up to $2,000, which has no expiration date, and a program to offset the anticipated impact of dilution related to stock-based awards (the Evergreen Program), which has no authorization limit on the dollar amount and no expiration date. Stock repurchases under the two stock repurchase programs were as follows for the periods indicated:
Dividends per share declared were as follows for the periods indicated:
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COMPREHENSIVE INCOME |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME The following table provides a summary of Comprehensive income for the periods indicated:
Changes in Accumulated other comprehensive net (loss) income by component were as follows for the six months ended December 31:
Included in foreign currency translation adjustments are re-measurement losses on long-term intercompany loans where settlement is not planned or anticipated in the foreseeable future. For the three and six months ended December 31, 2018, Other comprehensive income (loss) on these loans totaled $(2) and $(4), respectively. For the three and six months ended December 31, 2017, Other comprehensive income (loss) on these loans totaled $(3) and $(4), respectively. There were no amounts associated with these loans reclassified from Accumulated other comprehensive net (loss) income for the periods presented. |
EMPLOYEE BENEFIT PLANS |
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The following table summarizes the components of net periodic benefit cost for the Company’s retirement income plans:
(1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2019 net periodic benefit cost is 4.33%. During each of the three months ended December 31, 2018 and 2017, the Company made $2 in contributions to its domestic retirement income plans. During each of the six months ended December 31, 2018 and 2017, the Company made $4 in contributions to its domestic retirement income plans. As a result of adopting ASU No. 2017-07, "Compensation-Retirement Benefits (Topic 715)," effective July 1, 2018, net periodic benefit cost is reflected in Other (income) expense, net for fiscal year 2019, and in Cost of products sold, Selling and administrative expenses and Research and development costs prior to fiscal year 2019. Refer to Note 1 for more details. |
OTHER CONTINGENCIES AND GUARANTEES |
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Dec. 31, 2018 | |
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 as of December 31, 2018 and June 30, 2018, for its share of aggregate future remediation costs related to these matters. One matter, which accounted for $14 of the recorded liability as of December 31, 2018 and June 30, 2018, 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 this 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 of the recorded liability, as of December 31, 2018 and June 30, 2018. 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 condensed consolidated financial statements taken as a whole. Guarantees In conjunction with divestitures and other transactions, the Company may provide typical indemnifications (e.g., indemnifications for representations and warranties and retention of previously existing environmental, tax and employee liabilities) that have terms that vary in duration and in the potential amount of the total obligation and, in many circumstances, are not explicitly defined. The Company has not made, nor does it believe that it is probable that it will make, any material payments relating to its indemnifications, and believes that any reasonably possible payments would not have a material adverse effect, either individually or in the aggregate, on the Company’s condensed consolidated financial statements taken as a whole. The Company had not recorded any material liabilities on the aforementioned guarantees as of December 31, 2018 and June 30, 2018. As of December 31, 2018, the Company was a party to letters of credit of $9, primarily related to one of its insurance carriers, of which $0 had been drawn upon. |
SEGMENT RESULTS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT RESULTS | SEGMENT RESULTS The Company operates through strategic business units (SBUs) that are aggregated into four reportable segments based on the economics and nature of the products sold: Cleaning, Household, Lifestyle and International. Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, other investments and deferred taxes. The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated Net sales and Earnings from continuing operations before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate.
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, Wal-Mart Stores, Inc. and its affiliates, as a percentage of consolidated net sales, were 24% and 25% for the three and six months ended December 31, 2018, respectively, and 26% for both the three and six months ended December 31, 2017. The following table provides Net sales as a percentage of total Company, disaggregated by SBU:
(1) The dietary supplements business was acquired in April 2018. See Note 3 for details. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements for the three and six months ended December 31, 2018 and 2017, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its subsidiaries (the Company) for the periods presented. However, the financial results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain prior year reclassifications were made in the condensed consolidated statements of cash flows to conform to the current year presentation. The information in this report should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2018, which includes a complete set of footnote disclosures, including the Company’s significant accounting policies. |
Revenue Recognition | Revenue Recognition Revenue is recognized when performance obligations under the terms of the contracts with customers are satisfied. The Company's performance obligation generally consists of the promise to sell finished products to wholesalers, distributors, retailers or consumers. Control of finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. Once control is transferred to the customer, the Company has completed its performance obligation, and revenue is recognized. After completion of the performance obligation, there is an unconditional right to consideration as outlined in the contract. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. The Company typically collects its customer receivables within two months. All performance obligations under the terms of contracts with customers have an original duration of one year or less. 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, which 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. The costs of such activities, defined as variable consideration under Topic 606 of the Accounting Standards Codification, "Revenue from Contracts with Customers," are netted against sales and recorded when the related sale takes place. The accruals for trade promotion programs and consumer coupon liabilities are established based on the Company’s best estimate of the amounts necessary to settle future and existing obligations for products sold as of the balance sheet date. The Company uses forecasted appropriations, historical trend analysis, and customer and sales organization inputs in determining the accruals for promotional activities, and uses historical trend experience and coupon redemption estimates for the coupon accrual requirements. The Company provides an allowance for doubtful accounts based on its historical experience and ongoing assessment of its customers’ credit risk and aging. Receivables are presented net of the allowance for doubtful accounts. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation Effective July 1, 2018, under the requirements of U.S. GAAP, Argentina was designated as a highly inflationary economy, since it has experienced cumulative inflation of approximately 100 percent or more over a three-year period. As a result, beginning July 1, 2018, the U.S. dollar replaced the Argentine peso as the functional currency of the Company’s subsidiaries in Argentina (collectively, "Clorox Argentina"). Consequently, gains and losses from non-U.S. dollar denominated monetary assets and liabilities for Clorox Argentina are recognized in Other (income) expense, net in the condensed consolidated statement of earnings. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Issued Accounting Standards Not Yet Adopted In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which amends its guidance to allow a reclassification from Accumulated Other Comprehensive Income to Retained Earnings for the stranded income tax effects resulting from The Tax Cuts and Jobs Act of 2017 (the Tax Act). The amendments are 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 August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the hedge accounting recognition and presentation requirements to better align an entity’s risk management activities with its financial reporting. This standard also simplifies the application of hedge accounting in certain situations. 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 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. In July 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842), Targeted Improvements," which provides an optional transition method in applying the new lease standard. Topic 842 can be applied using either a modified retrospective approach at the beginning of the earliest period presented, or, as permitted by ASU 2018-11, at the beginning of the period in which it is adopted. The Company will adopt the new standard on July 1, 2019, on a modified retrospective basis using the optional transition method, and, accordingly, will not restate comparative periods. The Company has initiated its plan for the adoption and implementation of this new accounting standard, including assessing its lease arrangements and implementing software to meet the reporting and disclosure requirements of this standard. Additionally, the Company is in the process of identifying changes to its business processes and controls to support the adoption and is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. Refer to Note 12 of the Notes to Consolidated Financial Statements in Form 10-K for the fiscal year ended June 30, 2018 for the future minimum annual lease payments required under the Company’s existing non-cancelable operating and capital lease arrangements as of June 30, 2018. Recently Adopted Accounting Standards 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 Company adopted the new guidance on a modified retrospective basis effective July 1, 2018, and does not expect the guidance to have a material impact on the Company's annual consolidated financial statements. However, there will be an impact on the Company’s financial results in the interim periods due to the timing of recognition for certain trade promotion spending. Due to a change in the timing of recognition for certain trade promotion spending, the Company recorded an immaterial cumulative effect of initially applying the new guidance as an adjustment to the fiscal year 2019 opening balance of Retained earnings. Results for periods beginning on or after July 1, 2018 are recognized and presented in accordance with Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with the prior accounting guidance under Topic 605, "Revenue Recognition." The Company has made changes to its accounting policies, business processes, systems and controls to align with the new revenue recognition guidance and disclosure requirements. In March 2017, the FASB issued 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. The Company adopted this new guidance in the first quarter of fiscal year 2019 and the adoption did not have a material impact on the Company's consolidated financial statements. Following the adoption of this guidance, the Company records the non-service cost components of net periodic benefit cost in Other (income) expense, net. In March 2018, the FASB issued ASU No. 2018-05, “Income Taxes (Topic 740)-Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” which amends its guidance to address the initial accounting for the income tax effects of the Tax Act, which was enacted on December 22, 2017 (enactment date). This new guidance allows reasonable estimates of income tax effects to be reported as provisional amounts during the measurement period, which is one year from the enactment date, when the necessary information is not available, prepared, or analyzed in sufficient detail to complete the accounting. The amendments also added specific disclosure requirements. The Company adopted this new guidance and initially recorded $81 of provisional benefits in the second quarter of fiscal year 2018. Refer to Note 6 for more information. |
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of December 31, 2018 and June 30, 2018, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. |
Segment Results | The Company operates through strategic business units (SBUs) that are aggregated into four reportable segments based on the economics and nature of the products sold: Cleaning, Household, Lifestyle and International. Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, other investments and deferred taxes. |
BUSINESS ACQUIRED (Tables) |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of Nutranext's assets acquired and liabilities assumed and the related deferred income taxes as of the acquisition date. Due to the timing of the acquisition, the fair value of the assets acquired and liabilities assumed are based on a preliminary valuation and the Company’s estimates and assumptions are subject to change within the measurement period. The primary areas of the purchase price that are not yet finalized are related to goodwill and income taxes. The weighted-average estimated useful life of intangible assets subject to amortization is 15 years.
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INVENTORIES, NET (Tables) |
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Schedule of Inventories, Net | Inventories, net, consisted of the following as of:
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) |
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Derivative Instruments Designated as Hedging Instruments on OCI | The effects of derivative instruments designated as hedging instruments on Other comprehensive income and Net earnings were as follows:
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Effects of Derivative Instruments Designated as Hedging Instruments on Net Earnings |
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Schedule of Assets and Liabilities for Fair Value Disclosure | The following table summarizes the fair value of the Company’s assets and liabilities for which disclosure of fair value is required:
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INCOME TAXES (Tables) |
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Schedule Of Impact From Change In Tax Rate | as follows:
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NET EARNINGS PER SHARE (EPS) (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares Outstanding and Antidilutive Shares | The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS:
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Schedule of Share Repurchases Under Authorized Programs | Stock repurchases under the two stock repurchase programs were as follows for the periods indicated:
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Dividends Declared | Dividends per share declared were as follows for the periods indicated:
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COMPREHENSIVE INCOME (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Comprehensive Income | The following table provides a summary of Comprehensive income for the periods indicated:
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Schedule of Changes in Accumulated Other Comprehensive Net (Losses) Income | Changes in Accumulated other comprehensive net (loss) income by component were as follows for the six months ended December 31:
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EMPLOYEE BENEFIT PLANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Cost | The following table summarizes the components of net periodic benefit cost for the Company’s retirement income plans:
(1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2019 net periodic benefit cost is 4.33%. |
SEGMENT RESULTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Financial Information Relating to the Company's Segments | The following table provides Net sales as a percentage of total Company, disaggregated by SBU:
(1) The dietary supplements business was acquired in April 2018. See Note 3 for details. The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated Net sales and Earnings from continuing operations before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2018 |
|
Accounting Policies [Abstract] | ||
Contract term | one year or less | |
Tax Cuts and Jobs Act of 2017, provisional income tax benefit | $ 81 |
DISCONTINUED OPERATIONS (Summary of (Losses) Gains from Discontinued Operations) (Details) - Clorox Venezuela [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 39 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2014 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Minimum percentage of products required to be sold at frozen price | 66.67% | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
BUSINESS ACQUIRED (Narrative) (Details) - USD ($) $ in Millions |
Apr. 02, 2018 |
Dec. 31, 2018 |
Jun. 30, 2018 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 1,586 | $ 1,602 | |
Nutranext [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of business acquired | 100.00% | ||
Amount paid for acquisition | $ 681 | ||
Goodwill | 411 | ||
Goodwill expected to be tax deductible | $ 363 | ||
The weighted-average estimated useful life of intangible assets subject to amortization | 15 years | ||
Lifestyle [Member] | Nutranext [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 309 | ||
Household [Member] | Nutranext [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 102 |
BUSINESS ACQUIRED (Fair Value Of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Jun. 30, 2018 |
Apr. 02, 2018 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 1,586 | $ 1,602 | |
Nutranext [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 411 | ||
Property, plant and equipment | 49 | ||
Working capital, net | 23 | ||
Deferred income taxes | (20) | ||
Consideration paid | 681 | ||
Customer Relationships [Member] | Nutranext [Member] | |||
Business Acquisition [Line Items] | |||
Other intangible assets | 75 | ||
Trademarks [Member] | Nutranext [Member] | |||
Business Acquisition [Line Items] | |||
Other intangible assets | 143 | ||
Lifestyle [Member] | Nutranext [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 309 | ||
Household [Member] | Nutranext [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 102 |
INVENTORIES, NET (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Jun. 30, 2018 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 467 | $ 395 |
Raw materials and packaging | 135 | 129 |
Work in process | 7 | 9 |
LIFO allowances | (31) | (27) |
Total | $ 578 | $ 506 |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) $ in Millions |
6 Months Ended | |
---|---|---|
Dec. 31, 2018
USD ($)
instrument
|
Jun. 30, 2018
USD ($)
instrument
|
|
Derivative [Line Items] | ||
Maximum duration, foreign exchange contracts | 2 years | |
Maximum duration, interest rate contracts | 12 months | |
Number of interest rate derivatives held | instrument | 0 | 0 |
Estimated amount of the existing net gain (loss) to be reclassified into earnings in the next 12 months | $ (8) | |
Derivative instruments subject to contractually defined counterparty liability position limits | $ 1 | $ 0 |
Total Commodity Purchase Derivative Contracts [Member] | ||
Derivative [Line Items] | ||
Maximum duration, commodity contracts | 2 years | |
Notional amounts | $ 34 | 34 |
Cash margin balances amount | 2 | 2 |
Jet Fuel Swaps [Member] | ||
Derivative [Line Items] | ||
Notional amounts | 11 | 10 |
Soybean Oil Futures [Member] | ||
Derivative [Line Items] | ||
Notional amounts | 23 | 24 |
Purchases of Inventory [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Notional amounts | $ 43 | $ 50 |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of the Effects of Derivative Instruments Designated as Hedging Instruments) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive income | $ (9) | $ 2 | $ (5) | $ 5 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | (5) | (2) | (2) | (5) |
Commodity Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive income | (10) | 1 | (6) | 3 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | (4) | 0 | 0 | 0 |
Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive income | 1 | 1 | 1 | 0 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 0 | 0 | 1 | (1) |
Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive income | 0 | 0 | 0 | 2 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | $ (1) | $ (2) | $ (3) | $ (4) |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities for Fair Value Disclosure) (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Jun. 30, 2018 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 162 | $ 131 |
Prepaid expenses and other current assets | 97 | 74 |
Total assets | 5,073 | 5,060 |
Notes and loans payable | 235 | 199 |
Accounts payable and accrued liabilities | 951 | 1,001 |
Total liabilities | 4,331 | 4,334 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 157 | 138 |
Total liabilities | 2,523 | 2,484 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 157 | 138 |
Total liabilities | 2,519 | 2,469 |
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 and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 43 | 24 |
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 and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 43 | 24 |
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 and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 27 | 23 |
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 and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 27 | 23 |
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 and Nonrecurring Basis [Line Items] | ||
Prepaid expenses and other current assets | 0 | 3 |
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 and Nonrecurring Basis [Line Items] | ||
Prepaid expenses and other current assets | 2 | 2 |
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 and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 3 |
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 and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 2 |
Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | Trust Assets for nonqualified deferred compensation plans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trust assets for nonqualified deferred compensation plans | 85 | 86 |
Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | Trust Assets for nonqualified deferred compensation plans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trust assets for nonqualified deferred compensation plans | 85 | 86 |
Notes and Loans Payable [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Notes and loans payable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans payable | 235 | 199 |
Notes and Loans Payable [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Notes and loans payable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans payable | 235 | 199 |
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts payable and accrued liabilities | 1 | 1 |
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1 | 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 and Nonrecurring Basis [Line Items] | ||
Accounts payable and accrued liabilities | 1 | 0 |
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 and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1 | 0 |
Other Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other liabilities | 1 | 0 |
Other 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 and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1 | 0 |
Current maturities of long-term debt and Long-term debt [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Long-term Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current maturities of long-term debt and Long-term debt | 2,285 | 2,284 |
Current maturities of long-term debt and Long-term debt [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Long-term Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current maturities of long-term debt and Long-term debt | $ 2,281 | $ 2,269 |
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Tax Contingency [Line Items] | ||||||
Effective tax rate on earnings from continuing operations | 18.80% | (3.10%) | 20.20% | 15.90% | ||
Federal statutory tax rate | 28.10% | |||||
Total Tax Cuts and Jobs Act of 2017, provisional income tax benefit | $ 81 | |||||
Scenario, Forecast [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Federal statutory tax rate | 21.00% |
INCOME TAXES (Schedule of Impact from Change in Tax Rate) (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Income Tax Disclosure [Abstract] | |
One-time net deferred tax liability reduction | $ 60 |
One-time transition tax | (7) |
Net total one-time tax benefit | 53 |
Beneficial year-to-date current taxable income impact | 28 |
Total tax benefits | $ 81 |
NET EARNINGS PER SHARE (EPS) (Schedule of Weighted Average Number of Shares) (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Earnings Per Share [Abstract] | ||||
Basic (in shares) | 128,068 | 129,359 | 127,955 | 129,189 |
Dilutive effect of stock options and other (in shares) | 2,026 | 2,296 | 2,152 | 2,370 |
Diluted (in shares) | 130,094 | 131,655 | 130,107 | 131,559 |
Antidilutive stock options and other (in shares) | 1 | 1,223 | 831 | 1,223 |
NET EARNINGS PER SHARE (EPS) (Share Repurchase Programs) (Details) shares in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
repurchase_program
shares
|
Dec. 31, 2017
USD ($)
shares
|
Dec. 31, 2018
USD ($)
repurchase_program
shares
|
Dec. 31, 2017
USD ($)
shares
|
May 31, 2018
USD ($)
|
|
Share Repurchase Programs [Line Items] | |||||
Number of repurchase programs | repurchase_program | 2 | 2 | |||
Value of shares repurchased | $ 38,000,000 | $ 3,000,000 | $ 236,000,000 | $ 63,000,000 | |
Shares repurchased (in shares) | shares | 253 | 26 | 1,676 | 476 | |
$2 Billion Open-Market Purchase Program [Member] | |||||
Share Repurchase Programs [Line Items] | |||||
Authorized repurchase amount | $ 2,000,000,000 | ||||
Value of shares repurchased | $ 0 | $ 78,000,000 | |||
Shares repurchased (in shares) | shares | 0 | 591 | |||
$750 Million Open-Market Purchase Program [Member] | |||||
Share Repurchase Programs [Line Items] | |||||
Value of shares repurchased | $ 0 | $ 0 | |||
Shares repurchased (in shares) | shares | 0 | 0 | |||
Evergreen Program [Member] | |||||
Share Repurchase Programs [Line Items] | |||||
Value of shares repurchased | $ 38,000,000 | $ 3,000,000 | $ 158,000,000 | $ 63,000,000 | |
Shares repurchased (in shares) | shares | 253 | 26 | 1,085 | 476 |
NET EARNINGS PER SHARE (EPS) (Dividends Per Share Declared) (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Earnings Per Share [Abstract] | ||||
Dividends declared per share (in dollars per share) | $ 0.96 | $ 0.84 | $ 1.92 | $ 1.68 |
COMPREHENSIVE INCOME (Schedule of Comprehensive Income) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
||||
Stockholders' Equity Note [Abstract] | |||||||
Earnings from continuing operations | $ 182 | $ 233 | $ 392 | $ 425 | [1] | ||
Earnings (losses) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | [1] | ||
Net earnings | 182 | 233 | 392 | 425 | [1] | ||
Other comprehensive income (loss), net of tax: | |||||||
Foreign currency translation adjustments | (29) | (4) | (31) | 10 | |||
Net unrealized gains (losses) on derivatives | (2) | 3 | (1) | 8 | |||
Pension and postretirement benefit adjustments | 1 | 1 | 2 | 1 | |||
Total other comprehensive income (loss), net of tax | (30) | 0 | (30) | 19 | |||
Comprehensive income | $ 152 | $ 233 | $ 362 | $ 444 | |||
|
COMPREHENSIVE INCOME (Schedule of Changes in Accumulated Other Comprehensive Net (Losses) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | $ 726 | |
Balance, ending | 742 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | (384) | $ (356) |
Other comprehensive income (loss) before reclassifications | (30) | 13 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 0 | 0 |
Income tax benefit (expense) | (1) | (3) |
Net current period other comprehensive income (loss) | (31) | 10 |
Balance, ending | (415) | (346) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | (25) | (37) |
Other comprehensive income (loss) before reclassifications | (5) | 5 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 2 | 5 |
Income tax benefit (expense) | 2 | (2) |
Net current period other comprehensive income (loss) | (1) | 8 |
Balance, ending | (26) | (29) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | (138) | (150) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 3 | 3 |
Income tax benefit (expense) | (1) | (2) |
Net current period other comprehensive income (loss) | 2 | 1 |
Balance, ending | (136) | (149) |
AOCI Attributable to Parent [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | (547) | (543) |
Other comprehensive income (loss) before reclassifications | (35) | 18 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 5 | 8 |
Income tax benefit (expense) | 0 | (7) |
Net current period other comprehensive income (loss) | (30) | 19 |
Balance, ending | $ (577) | $ (524) |
COMPREHENSIVE INCOME (Narrative) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Long-Term Inter-Company Loans [Member] | ||||
Intercompany Foreign Currency Balance [Line Items] | ||||
Re-measurement gains (losses) on long-term intercompany loans | $ (2,000,000) | $ (3,000,000) | $ (4,000,000) | $ (4,000,000) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Intercompany Foreign Currency Balance [Line Items] | ||||
Amounts reclassified from Accumulated other comprehensive net (loss) income | 0 | 0 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Long-Term Inter-Company Loans [Member] | ||||
Intercompany Foreign Currency Balance [Line Items] | ||||
Amounts reclassified from Accumulated other comprehensive net (loss) income | $ 0 | $ 0 | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average long-term expected rate or return on plan assets | 4.33% | |||
Other Postretirement Benefits Plan [Member] | Retirement Income Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 6 | 5 | 12 | 11 |
Expected return on plan assets | (5) | (4) | (9) | (9) |
Amortization of unrecognized items | 3 | 2 | 5 | 5 |
Total | 4 | 3 | 8 | 7 |
UNITED STATES | Retirement Income Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discretionary contributions | $ 2 | $ 2 | $ 4 | $ 4 |
OTHER CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Nov. 30, 2016 |
|
Loss Contingencies [Line Items] | ||||
Liability for aggregate future remediation costs | $ 28 | $ 28 | ||
Letter of credit | 9 | |||
Letter of credit, amount outstanding | 0 | |||
Alameda County, California Matter | ||||
Loss Contingencies [Line Items] | ||||
Liability for aggregate future remediation costs | $ 14 | 14 | $ 14 | |
Remediation period | 30 years | |||
Maximum undiscounted costs | $ 28 | |||
Dickinson County, Michigan Matter | ||||
Loss Contingencies [Line Items] | ||||
Liability for aggregate future remediation costs | $ 12 | $ 12 | ||
Remediation period | 30 years | |||
Percentage of liability for aggregate remediation and associated costs, other than legal fees | 24.30% |
SEGMENT RESULTS (Narrative) (Details) - reportable_segment |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Concentration Risk [Line Items] | ||||
Number of reportable segments | 4 | |||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Walmart Stores, Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage | 24.00% | 26.00% | 25.00% | 26.00% |
SEGMENT RESULTS (Selected Financial Information Relating To Company's Segments ) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,473 | $ 1,416 | $ 3,036 | $ 2,916 |
Earnings from continuing operations before income taxes | 224 | 227 | 492 | 506 |
Operating Segments [Member] | Cleaning [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 500 | 472 | 1,071 | 1,031 |
Earnings from continuing operations before income taxes | 135 | 121 | 315 | 293 |
Operating Segments [Member] | Household [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 393 | 410 | 835 | 851 |
Earnings from continuing operations before income taxes | 46 | 54 | 105 | 127 |
Operating Segments [Member] | Lifestyle [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 335 | 268 | 644 | 514 |
Earnings from continuing operations before income taxes | 78 | 69 | 140 | 133 |
Operating Segments [Member] | International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 245 | 266 | 486 | 520 |
Earnings from continuing operations before income taxes | 25 | 23 | 53 | 46 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Earnings from continuing operations before income taxes | $ (60) | $ (40) | $ (121) | $ (93) |
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Cleaning [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 34.00% | 33.00% | 35.00% | 35.00% |
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Household [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 26.00% | 29.00% | 28.00% | 29.00% |
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Lifestyle [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 23.00% | 19.00% | 21.00% | 18.00% |
Product Concentration Risk [Member] | Sales Revenue, Net [Member] | International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 17.00% | 19.00% | 16.00% | 18.00% |
Home Care [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Cleaning [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 19.00% | 19.00% | 20.00% | 20.00% |
Laundry [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Cleaning [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 9.00% | 9.00% | 9.00% | 9.00% |
Professional Products [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Cleaning [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 6.00% | 5.00% | 6.00% | 6.00% |
Bags, Wraps, And Containers [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Household [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 13.00% | 15.00% | 14.00% | 15.00% |
Cat Litter [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Household [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 8.00% | 7.00% | 7.00% | 7.00% |
Charcoal [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Household [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 3.00% | 5.00% | 5.00% | 5.00% |
Digestive Health [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Household [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 2.00% | 2.00% | 2.00% | 2.00% |
Food Products [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Lifestyle [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 10.00% | 10.00% | 9.00% | 9.00% |
Natural Personal Care [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Lifestyle [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 6.00% | 6.00% | 5.00% | 5.00% |
Water Filtration [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Lifestyle [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 3.00% | 3.00% | 3.00% | 4.00% |
Dietary Supplements [Member] | Product Concentration Risk [Member] | Sales Revenue, Net [Member] | Lifestyle [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 4.00% | 0.00% | 4.00% | 0.00% |
Label | Element | Value |
---|---|---|
Accounting Standards Update 2016-18 [Member] | ||
Restricted Cash | us-gaap_RestrictedCash | $ 2,000,000 |
Restricted Cash | us-gaap_RestrictedCash | $ 3,000,000 |
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