Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||
for the fiscal year ended | ||||||||
OR | ||||||||
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||
for the transition period from __________to__________. | ||||||||
Commission file number: |
(State or other jurisdiction of | (I.R.S. Employer | |||||||
incorporation or organization) | Identification Number) |
(Address of principal executive offices) (ZIP code) | |||||||||||||||||
(Registrant’s telephone number, including area code) | |||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||
Securities registered pursuant to Section 12(g) of the Act: | |||||||||||||||||
None | |||||||||||||||||
(Title of class) |
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging Growth Company |
Page | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Cleaning products | 42 | % | 42 | % | 43 | % | |||||||||||
Bags and wraps | 16 | % | 16 | % | 14 | % | |||||||||||
Food products | 11 | % | 11 | % | 10 | % | |||||||||||
Cat litter products | 10 | % | 9 | % | 8 | % |
Name | Age | Year First Elected Executive Officer | Title | ||||||||
Linda Rendle | 45 | 2016 | Chief Executive Officer | ||||||||
Stacey Grier | 60 | 2019 | Executive Vice President – Chief Growth and Strategy Officer | ||||||||
Angela Hilt | 51 | 2020 | Executive Vice President – Chief Legal Officer | ||||||||
Kevin B. Jacobsen | 57 | 2018 | Executive Vice President – Chief Financial Officer | ||||||||
Kirsten Marriner | 50 | 2016 | Executive Vice President – Chief People and Corporate Affairs Officer | ||||||||
Eric Reynolds | 53 | 2015 | Executive Vice President – Chief Operating Officer | ||||||||
Chau Banks | 54 | 2020 | Senior Vice President – Chief Information and Data Officer | ||||||||
Shanique Bonelli-Moore | 43 | 2022 | Vice President – Chief Diversity and Social Impact Officer | ||||||||
Rebecca Dunphey 1 | 45 | 2022 | Group President – Care and Connection | ||||||||
Matt Gregory | 50 | 2021 | Senior Vice President – Chief Customer Officer | ||||||||
Chris Hyder | 48 | 2021 | Group President – Health and Hygiene | ||||||||
Rick McDonald | 63 | 2020 | Senior Vice President – Chief Supply Chain Officer | ||||||||
Michael Ott | 54 | 2022 | Senior Vice President – Chief Research and Development Officer | ||||||||
Eric Schwartz | 51 | 2022 | Senior Vice President – Chief Marketing Officer | ||||||||
1 Ms. Dunphey will be resigning from the Company on August 11, 2023. |
[a] | [b] | [c] | [d] | ||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share (1) | 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 | |||||||||||||||||||
April 1 to 30, 2023 | — | $ | — | — | $993 million | ||||||||||||||||||
May 1 to 31, 2023 | — | — | — | $993 million | |||||||||||||||||||
June 1 to 30, 2023 | — | — | — | $993 million | |||||||||||||||||||
— | $ | — | — |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||
3.1 | 10-K | 001-07151 | 3.1 | August 14, 2018 | ||||||||||||||||||||||||||||
3.2 | 8-K | 001-07151 | 3.2 | May 26, 2023 | ||||||||||||||||||||||||||||
3.3 | 8-K | 001-07151 | 3.1 | July 19, 2011 | ||||||||||||||||||||||||||||
4.1 | S-3ASR | 333-200722 | 4.1 | December 4, 2014 | ||||||||||||||||||||||||||||
4.2 | S-3ASR | 333-200722 | 4.5 | December 4, 2014 | ||||||||||||||||||||||||||||
4.3 | 8-K | 001-07151 | 4.1 | December 9, 2014 | ||||||||||||||||||||||||||||
4.4 | 8-K | 001-07151 | 4.1 | September 28, 2017 | ||||||||||||||||||||||||||||
4.5 | 8-K | 001-07151 | 4.1 | May 9, 2018 | ||||||||||||||||||||||||||||
4.6 | 8-K | 001-07151 | 4.1 | May 8, 2020 | ||||||||||||||||||||||||||||
4.7 | 8-K | 001-07151 | 4.1 | May 11, 2022 | ||||||||||||||||||||||||||||
4.8 | 10-K | 001-07151 | 4.10 | August 14, 2019 | ||||||||||||||||||||||||||||
10.1* | 10-Q | 001-07151 | 10.55 | May 2, 2008 | ||||||||||||||||||||||||||||
10.2* | 10-K | 001-07151 | 10(x) | August 27, 2004 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||
10.3* | 10-K | 001-07151 | 10.3 | August 16, 2016 | ||||||||||||||||||||||||||||
10.4* | 10-Q | 001-07151 | 10.1 | May 2, 2023 | ||||||||||||||||||||||||||||
10.5* | DEF 14A | 001-07151 | App. A | October 6, 2021 | ||||||||||||||||||||||||||||
10.6* | 10-Q | 001-07151 | 10.2 | November 1, 2022 | ||||||||||||||||||||||||||||
10.7* | 10-Q | 001-07151 | 10.4 | November 1, 2021 | ||||||||||||||||||||||||||||
10.8* | 10-Q | 001-07151 | 10.4 | November 2, 2020 | ||||||||||||||||||||||||||||
10.9* | 10-Q | 001-07151 | 10.1 | November 1, 2022 | ||||||||||||||||||||||||||||
10.10* | 10-Q | 001-07151 | 10.3 | November 1, 2021 | ||||||||||||||||||||||||||||
10.11* | 10-Q | 001-07151 | 10.5 | November 2, 2020 | ||||||||||||||||||||||||||||
10.12* | 10-Q | 001-07151 | 10.3 | November 1, 2022 | ||||||||||||||||||||||||||||
10.13* | 10-Q | 001-07151 | 10.5 | November 1, 2021 | ||||||||||||||||||||||||||||
10.14* | 10-Q | 001-07151 | 10.2 | November 2, 2020 | ||||||||||||||||||||||||||||
10.15* | 10-Q | 001-07151 | 10.4 | November 1, 2022 | ||||||||||||||||||||||||||||
10.16* | 10-K | 001-07151 | 10.18 | August 19, 2008 | ||||||||||||||||||||||||||||
10.17* | 10-K | 001-07151 | 10.18 | August 26, 2011 | ||||||||||||||||||||||||||||
10.18* | 10-K | 001-07151 | 10.13 | August 16, 2016 | ||||||||||||||||||||||||||||
10.19* | 10-Q | 001-07151 | 10.17 | November 3, 2009 | ||||||||||||||||||||||||||||
10.20* | 10-Q | 001-07151 | 10.21 | November 3, 2011 | ||||||||||||||||||||||||||||
10.21* | 10-Q | 001-07151 | 10.2 | November 2, 2012 | ||||||||||||||||||||||||||||
10.22* | 10-Q | 001-07151 | 10.1 | May 2, 2018 | ||||||||||||||||||||||||||||
10.23* | 10-Q | 001-07151 | 10.27 | May 4, 2010 | ||||||||||||||||||||||||||||
10.24* | 8-K | 001-07151 | 10.2 | November 17, 2021 | ||||||||||||||||||||||||||||
10.25* | 8-K | 001-07151 | 10.3 | November 17, 2021 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||
10.26* | 10-Q | 001-07151 | 10.27 | May 4, 2011 | ||||||||||||||||||||||||||||
10.27* | 10-K | 001-07151 | 10.22 | August 16, 2016 | ||||||||||||||||||||||||||||
10.28* | 10-K | 001-07151 | 10.29 | August 26, 2011 | ||||||||||||||||||||||||||||
10.29* | 10-K | 001-07151 | 10.24 | August 16, 2016 | ||||||||||||||||||||||||||||
10.30* | 10-K | 001-07151 | 10.26 | August 14, 2018 | ||||||||||||||||||||||||||||
10.31 | 8-K | 001-07151 | 10.1 | March 28, 2022 | ||||||||||||||||||||||||||||
10.32 | 10-K/A | 001-07151 | 10.26 | September 30, 2016 | ||||||||||||||||||||||||||||
10.33 | 10-Q | 001-07151 | 10.2 | February 2, 2018 | ||||||||||||||||||||||||||||
10.34 | 10-Q | 001-07151 | 10.1 | February 2, 2018 | ||||||||||||||||||||||||||||
10.35 | 10-Q | 001-07151 | 10.2 | February 4, 2021 | ||||||||||||||||||||||||||||
21 | ||||||||||||||||||||||||||||||||
23 | ||||||||||||||||||||||||||||||||
31.1 | ||||||||||||||||||||||||||||||||
31.2 | ||||||||||||||||||||||||||||||||
32 | ||||||||||||||||||||||||||||||||
99.1 | ||||||||||||||||||||||||||||||||
99.2 | ||||||||||||||||||||||||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||||||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document. | |||||||||||||||||||||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||||||||||||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||||||||||||||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101). |
THE CLOROX COMPANY | ||||||||
Date: August 10, 2023 | By: | /s/ Linda Rendle | ||||||
Linda Rendle | ||||||||
Chief Executive Officer |
Signature | Title | Date | ||||||||||||
/s/ A. Banse | Director | August 10, 2023 | ||||||||||||
A. Banse | ||||||||||||||
/s/ J. Denman | Director | August 10, 2023 | ||||||||||||
J. Denman | ||||||||||||||
/s/ S. C. Fleischer | Director | August 10, 2023 | ||||||||||||
S. C. Fleischer | ||||||||||||||
/s/ E. Lee | Director | August 10, 2023 | ||||||||||||
E. Lee | ||||||||||||||
/s/ A. D. D. Mackay | Director | August 10, 2023 | ||||||||||||
A. D. D. Mackay | ||||||||||||||
/s/ P. Parker | Director | August 10, 2023 | ||||||||||||
P. Parker | ||||||||||||||
/s/ S. Plaines | Director | August 10, 2023 | ||||||||||||
S. Plaines | ||||||||||||||
/s/ M. J. Shattock | Independent Chair | August 10, 2023 | ||||||||||||
M. J. Shattock | ||||||||||||||
/s/ K. Tesija | Director | August 10, 2023 | ||||||||||||
K. Tesija | ||||||||||||||
/s/ R. J. Weiner | Director | August 10, 2023 | ||||||||||||
R. J. Weiner | ||||||||||||||
/s/ C. J. Williams | Director | August 10, 2023 | ||||||||||||
C. J. Williams | ||||||||||||||
/s/ L. Rendle | Chief Executive Officer (Principal Executive Officer) | August 10, 2023 | ||||||||||||
L. Rendle | ||||||||||||||
/s/ K. B. Jacobsen | Executive Vice President – Chief Financial Officer (Principal Financial Officer) | August 10, 2023 | ||||||||||||
K. B. Jacobsen | ||||||||||||||
/s/ L. Peck | Vice President – Chief Accounting Officer and Corporate Controller (Principal Accounting Officer) | August 10, 2023 | ||||||||||||
L. Peck |
Name of Company | Jurisdiction of Incorporation | |||||||
6570 Donlon Group, LLC | Delaware | |||||||
A & M Products Manufacturing Company | Delaware | |||||||
Iodine Holdings, Inc. | Connecticut | |||||||
Brita Canada Corporation | Nova Scotia | |||||||
Brita Canada Holdings Corporation | Nova Scotia | |||||||
Brita GP | Ontario | |||||||
Brita LP | Ontario | |||||||
Brita Manufacturing Company | Delaware | |||||||
The Brita Products Company | Delaware | |||||||
BGP (Switzerland) S. a. r. l. | Switzerland | |||||||
Burt’s Bees, Inc. | Delaware | |||||||
Burt’s Bees International Holdings | Delaware | |||||||
Burt’s Bees Licensing, LLC | Delaware | |||||||
The Burt’s Bees Products Company | Delaware | |||||||
Caltech Industries, Inc. | Michigan | |||||||
CBee (Europe) Limited | United Kingdom | |||||||
Chesapeake Assurance Limited | Hawaii | |||||||
Clorox Africa (Proprietary) Ltd. | South Africa | |||||||
Clorox Africa Holdings (Proprietary) Ltd. | South Africa | |||||||
Clorox Argentina S.A. | Argentina | |||||||
Clorox Australasia Holdings, Inc. | Delaware | |||||||
Clorox Australia Pty. Ltd. | Australia | |||||||
Clorox Brazil Holdings LLC | Delaware | |||||||
Clorox (Cayman Islands) Ltd. | Cayman Islands | |||||||
Clorox Chile S.A. | Chile | |||||||
Clorox China (Guangzhou) Ltd. | Guangzhou, P.R.C. | |||||||
Clorox Commercial Company | Delaware | |||||||
The Clorox Company of Canada Ltd. | Canada (Federal) | |||||||
Clorox de Centro America, S.A. | Costa Rica | |||||||
Clorox de Colombia S.A. | Colombia | |||||||
Clorox de Mexico, S de RL de C.V. | Mexico | |||||||
Clorox de Panama S.A. | Panama | |||||||
Clorox del Ecuador S.A. Ecuaclorox | Ecuador | |||||||
Clorox Diamond Production Company | Delaware | |||||||
Clorox Healthcare Holdings, LLC | Delaware | |||||||
Clorox Holdings Pty. Limited | Australia | |||||||
Clorox Hong Kong Limited | Hong Kong | |||||||
The Clorox International Company | Delaware | |||||||
Clorox International Holdings, LLC | Delaware | |||||||
Clorox International Philippines, Inc. | The Philippines | |||||||
Clorox Luxembourg S.a.r.l. | Luxembourg | |||||||
Clorox (Malaysia) Sdn. Bhd. | Malaysia | |||||||
Clorox Manufacturing Company | Delaware | |||||||
Clorox Manufacturing Company of Puerto Rico, Inc. | Puerto Rico | |||||||
Clorox Mexico Services Company S de R.L. de C.V. | Mexico | |||||||
Clorox New Zealand Limited | New Zealand | |||||||
The Clorox Outdoor Products Company | Delaware |
Clorox Peru S.A. | Peru | |||||||
The Clorox Pet Products Company | Texas | |||||||
Clorox Professional Products Company | Delaware | |||||||
The Clorox Sales Company | Delaware | |||||||
Clorox Services Company | Delaware | |||||||
Clorox Spain, S.L. | Spain | |||||||
Clorox Sub-Sahara Africa Limited | Kenya | |||||||
Clorox (Switzerland) S.a.r.l. | Switzerland | |||||||
Clorox Uruguay S.A. | Uruguay | |||||||
The Consumer Learning Center, LLC | Delaware | |||||||
Corporacion Clorox de Venezuela, S.A. | Venezuela | |||||||
CLX Realty Co. | Delaware | |||||||
Everest NeoCell LLC | Delaware | |||||||
First Brands (Bermuda) Limited | Bermuda | |||||||
First Brands Corporation | Delaware | |||||||
First Brands do Brasil Ltda. | Brazil | |||||||
Fully Will Limited | Hong Kong | |||||||
Gazoontite, LLC | Delaware | |||||||
Glad Manufacturing Company | Delaware | |||||||
The Glad Products Company | Delaware | |||||||
The Household Cleaning Products Company of Egypt Ltd. | Egypt | |||||||
The HV Food Products Company | Delaware | |||||||
HV Manufacturing Company | Delaware | |||||||
Invermark S.A. | Argentina | |||||||
Jingles LLC | Delaware | |||||||
Kaflex S.A. | Argentina | |||||||
Kingsford Manufacturing Company | Delaware | |||||||
The Kingsford Products Company, LLC | Delaware | |||||||
Lerwood Holdings Limited | British Virgin Islands | |||||||
The Mexco Company | Delaware | |||||||
Mohamed Ali Abudawood for Industry and Partners for Industry Company Ltd. | Kingdom of Saudi Arabia | |||||||
National Cleaning Products Company Limited | Kingdom of Saudi Arabia | |||||||
Nature’s Products, Inc. | Florida | |||||||
Nutranext, LLC | Delaware | |||||||
Nutranext Business, LLC | Delaware | |||||||
Nutranext Direct, LLC | Delaware | |||||||
Paulsboro Packaging Inc. | New Jersey | |||||||
Petroplus Productos Automotivos S.A. | Brazil | |||||||
Petroplus Sul Comercio Exterior S.A. | Brazil | |||||||
Rainbow Light Nutritional Systems, LLC | Delaware | |||||||
ReNew Life Formulas, LLC | Delaware | |||||||
ReNew Life Holdings Corporation | Delaware | |||||||
Round Ridge Production Company | Delaware | |||||||
Soy Vay Enterprises, Inc. | California | |||||||
STP do Brasil Ltda. | Brazil | |||||||
Yuhan-Clorox Co., Ltd. | Korea |
/s/ Linda Rendle | |||||
Linda Rendle | |||||
Chief Executive Officer |
/s/ Kevin B. Jacobsen | ||
Kevin B. Jacobsen | ||
Executive Vice President - Chief Financial Officer |
/s/ Linda Rendle | |||||
Linda Rendle | |||||
Chief Executive Officer | |||||
/s/ Kevin B. Jacobsen | |||||
Kevin B. Jacobsen | |||||
Executive Vice President – Chief Financial Officer |
% Change | |||||||||||||||||
2023 | 2022 | 2023 to 2022 | |||||||||||||||
Net sales | $ | 7,389 | $ | 7,107 | 4 | % |
Year Ended June 30, 2023 | ||||||||||||||||||||||||||
Percentage change versus the year-ago period | ||||||||||||||||||||||||||
Reported (GAAP) Net Sales Growth / (Decrease) | Reported Volume | Acquisitions & Divestitures | Foreign Exchange Impact | Price/Mix/Other (1) | Organic Sales Growth / (Decrease) (Non-GAAP) (2) | Organic Volume (3) | ||||||||||||||||||||
Health and Wellness | 4 | % | (16) | % | — | % | — | % | 20 | % | 4 | % | (16) | % | ||||||||||||
Household | 6 | (7) | — | — | 13 | 6 | (7) | |||||||||||||||||||
Lifestyle | 7 | (4) | — | — | 11 | 7 | (4) | |||||||||||||||||||
International | — | (5) | — | (11) | 16 | 11 | (5) | |||||||||||||||||||
Total Company (4) | 4 | % | (10) | % | — | % | (2) | % | 16 | % | 6 | % | (10) | % | ||||||||||||
Year Ended June 30, 2022 | ||||||||||||||||||||||||||
Percentage change versus the year-ago period | ||||||||||||||||||||||||||
Reported (GAAP) Net Sales Growth / (Decrease) | Reported Volume | Acquisitions & Divestitures | Foreign Exchange Impact | Price/Mix/Other (1) | Organic Sales Growth / (Decrease) (Non-GAAP) (2) | Organic Volume (3) | ||||||||||||||||||||
Health and Wellness | (10) | % | (9) | % | — | % | — | % | (1) | % | (10) | % | (9) | % | ||||||||||||
Household | — | (3) | — | — | 3 | — | (3) | |||||||||||||||||||
Lifestyle | 3 | 2 | — | — | 1 | 3 | 2 | |||||||||||||||||||
International | 2 | (1) | — | (4) | 7 | 6 | (1) | |||||||||||||||||||
Total Company (4) | (3) | % | (5) | % | — | % | (1) | % | 3 | % | (2) | % | (5) | % |
% Change | |||||||||||||||||
2023 | 2022 | 2023 to 2022 | |||||||||||||||
Gross profit | $ | 2,908 | $ | 2,545 | 14 | % | |||||||||||
Gross margin | 39.4 | % | 35.8 | % |
% Change | % of Net sales | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 to 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Selling and administrative expenses | $ | 1,183 | $ | 954 | 24 | % | 16.0% | 13.4% | |||||||||||||||||||||
Advertising costs | 734 | 709 | 4 | 9.9 | 10.0 | ||||||||||||||||||||||||
Research and development costs | 138 | 132 | 5 | 1.9 | 1.9 |
2023 | 2022 | ||||||||||
Goodwill, trademark and other asset impairments | $ | 445 | $ | — | |||||||
Interest expense | 90 | 106 | |||||||||
Other expense (income), net | 80 | 37 | |||||||||
Effective tax rate on earnings | 32.4% | 22.4 | % |
% Change | |||||||||||||||||
2023 | 2022 | 2023 to 2022 | |||||||||||||||
Diluted net EPS | $ | 1.20 | $ | 3.73 | (68) | % |
Net sales | |||||||||||||||||
Fiscal year | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Health and Wellness | $ | 2,532 | $ | 2,427 | $ | 2,690 | |||||||||||
Household | 2,098 | 1,984 | 1,981 | ||||||||||||||
Lifestyle | 1,338 | 1,253 | 1,218 | ||||||||||||||
International | 1,181 | 1,180 | 1,162 | ||||||||||||||
Corporate and Other | 240 | 263 | 290 | ||||||||||||||
Total | $ | 7,389 | $ | 7,107 | $ | 7,341 |
Segment adjusted EBIT (1) | |||||||||||||||||
Fiscal year | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Health and Wellness | $ | 594 | $ | 381 | $ | 748 | |||||||||||
Household | 308 | 234 | 375 | ||||||||||||||
Lifestyle | 284 | 280 | 320 | ||||||||||||||
International | 89 | 97 | 119 | ||||||||||||||
Corporate and Other | (358) | (223) | (293) | ||||||||||||||
Total | $ | 917 | $ | 769 | $ | 1,269 | |||||||||||
Interest income | 16 | 5 | 5 | ||||||||||||||
Interest expense | (90) | (106) | (99) | ||||||||||||||
VMS impairments | (445) | — | (329) | ||||||||||||||
Professional Products supplier charge | — | — | (28) | ||||||||||||||
Saudi JV acquisition gain | — | — | 82 | ||||||||||||||
Restructuring and related costs | (60) | — | — | ||||||||||||||
Digital capabilities and productivity enhancements investment | (100) | (61) | — | ||||||||||||||
Earnings (losses) before income taxes | $ | 238 | $ | 607 | $ | 900 |
% Change | |||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 to 2022 | 2022 to 2021 | |||||||||||||||||||||||||
Net sales | $ | 2,532 | $ | 2,427 | $ | 2,690 | 4 | % | (10) | % | |||||||||||||||||||
Segment adjusted EBIT | 594 | 381 | 748 | 56 | (49) |
% Change | |||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 to 2022 | 2022 to 2021 | |||||||||||||||||||||||||
Net sales | $ | 2,098 | $ | 1,984 | $ | 1,981 | 6 | % | — | % | |||||||||||||||||||
Segment adjusted EBIT | 308 | 234 | 375 | 32 | (38) |
% Change | |||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 to 2022 | 2022 to 2021 | |||||||||||||||||||||||||
Net sales | $ | 1,338 | $ | 1,253 | $ | 1,218 | 7 | % | 3 | % | |||||||||||||||||||
Segment adjusted EBIT | 284 | 280 | 320 | 1 | (13) |
% Change | |||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 to 2022 | 2022 to 2021 | |||||||||||||||||||||||||
Net sales | $ | 1,181 | $ | 1,180 | $ | 1,162 | — | % | 2 | % | |||||||||||||||||||
Segment adjusted EBIT | 89 | 97 | 119 | (8) | (18) |
% Change | |||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 to 2022 | 2022 to 2021 | |||||||||||||||||||||||||
Net Sales | $ | 240 | $ | 263 | $ | 290 | (9) | % | (9) | % | |||||||||||||||||||
Segment adjusted EBIT | (358) | (223) | (293) | 61 | % | (24) | % |
2023 | 2022 | ||||||||||
Net cash provided by operations | $ | 1,158 | $ | 786 | |||||||
Net cash used for investing activities | (223) | (229) | |||||||||
Net cash used for financing activities | (753) | (689) |
2023 | 2022 | ||||||||||
Net cash provided by operations | $ | 1,158 | $ | 786 | |||||||
Less: capital expenditures | (228) | (251) | |||||||||
Free cash flow | $ | 930 | $ | 535 | |||||||
Free cash flow as a percentage of net sales | 12.6 | % | 7.5 | % |
2023 | 2022 | ||||||||||||||||||||||
Short-term | Long-term | Short-term | Long-term | ||||||||||||||||||||
Standard and Poor’s | A-2 | BBB+ | A-2 | BBB+ | |||||||||||||||||||
Moody’s | P-2 | Baa1 | P-2 | Baa1 |
2023 | 2022 | ||||||||||
Dividends per share declared | $ | 4.72 | $ | 3.48 | |||||||
Dividends per share paid | 4.72 | 4.64 | |||||||||
Total dividends paid | 583 | 571 |
2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Long-term debt maturities including interest payments | $ | 90 | $ | 90 | $ | 90 | $ | 90 | $ | 984 | $ | 1,753 | $ | 3,097 | |||||||||||||||||||||||||||
Notes and loans payable | 51 | 1 | 1 | 1 | — | — | 54 | ||||||||||||||||||||||||||||||||||
Purchase obligations (1) (4) | 170 | 88 | 54 | 36 | 12 | 40 | 400 | ||||||||||||||||||||||||||||||||||
Operating and finance leases | 107 | 97 | 80 | 63 | 46 | 72 | 465 | ||||||||||||||||||||||||||||||||||
Payments related to nonqualified retirement income and retirement health care plans (2) | 16 | 16 | 16 | 15 | 14 | 55 | 132 | ||||||||||||||||||||||||||||||||||
Venture Agreement terminal obligation (3) | — | — | 527 | — | — | — | 527 | ||||||||||||||||||||||||||||||||||
Total | $ | 434 | $ | 292 | $ | 768 | $ | 205 | $ | 1,056 | $ | 1,920 | $ | 4,675 |
Reconciliation of Earnings (losses) before income taxes to Adjusted EBIT | |||||||||||||||||
Fiscal year | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Earnings (losses) before income taxes | $ | 238 | $ | 607 | $ | 900 | |||||||||||
Interest income | (16) | (5) | (5) | ||||||||||||||
Interest expense | 90 | 106 | 99 | ||||||||||||||
VMS impairments (1) (2) | 445 | — | 329 | ||||||||||||||
Professional Products supplier charge (3) | — | — | 28 | ||||||||||||||
Saudi JV acquisition gain (4) | — | — | (82) | ||||||||||||||
Streamlined operating model (5) | 60 | — | — | ||||||||||||||
Digital capabilities and productivity enhancements investment (6) | 100 | 61 | — | ||||||||||||||
Adjusted EBIT | $ | 917 | $ | 769 | $ | 1,269 |
Fiscal year | |||||||||||
2023 | 2022 | ||||||||||
External consulting fees (1) | $ | 79 | $ | 43 | |||||||
IT project personnel costs (2) | 6 | 11 | |||||||||
Other (3) | 15 | 7 | |||||||||
Total | $ | 100 | $ | 61 |
Year Ended June 30, 2023 | |||||||||||||||||
Percentage change versus the year-ago period | |||||||||||||||||
Health and Wellness | Household | Lifestyle | International | Total Company (1) | |||||||||||||
Net sales growth / (decrease) (GAAP) | 4 | % | 6 | % | 7 | % | — | % | 4 | % | |||||||
Add: Foreign Exchange | — | — | — | 11 | 2 | ||||||||||||
Add/(Subtract): Divestitures/Acquisitions | — | — | — | — | — | ||||||||||||
Organic sales growth / (decrease) (non-GAAP) | 4 | % | 6 | % | 7 | % | 11 | % | 6 | % |
Year Ended June 30, 2022 | |||||||||||||||||
Percentage change versus the year-ago period | |||||||||||||||||
Health and Wellness | Household | Lifestyle | International | Total Company (1) | |||||||||||||
Net sales growth / (decrease) (GAAP) | (10) | % | — | % | 3 | % | 2 | % | (3) | % | |||||||
Add: Foreign Exchange | — | — | — | 4 | 1 | ||||||||||||
Add/(Subtract): Divestitures/Acquisitions | — | — | — | — | — | ||||||||||||
Organic sales growth / (decrease) (non-GAAP) | (10) | % | 0 | % | 3 | % | 6 | % | (2) | % |
Valuation of Venture Agreement Terminal Obligation | |||||
Description of the Matter | As discussed in Note 9 of the consolidated financial statements, the Company has an agreement with The Proctor & Gamble Company (P&G) for the Company’s Glad bags and wraps business, for which the Company is required to purchase P&G’s 20% interest in the venture for cash at fair value of the global Glad business upon termination of the agreement. At June 30, 2023, the fair value of $495 million has been recognized as a venture agreement terminal obligation and represented 9% of total liabilities. Auditing the Company’s Glad venture agreement terminal obligation is complex and highly judgmental and required the involvement of a valuation specialist due to the significant judgment in estimating the fair value of the global Glad business. In particular, the fair value estimate is sensitive to assumptions such as net sales growth rates, gross margins, discount rate and commodity prices. These assumptions are sensitive to and affected by expected future market or economic conditions, particularly those in emerging markets, and industry and company-specific qualitative factors. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the venture agreement terminal obligation valuation review process. This included controls over the Company’s budgetary and forecasting process used to develop the estimated fair value of the global Glad business. We also tested management’s controls over the data used in their valuation models and review of the significant assumptions such as estimation of net sales, expense growth rates, terminal growth rates and commodity prices. To test the estimated fair value of the venture agreement terminal obligation, we performed audit procedures that included, among others, assessing the methodologies, testing the significant assumptions discussed above used to develop estimates of future earnings and cash flows, and testing the completeness and accuracy of the underlying data. We compared the significant assumptions used by management to current industry and economic trends, the Company’s historical results and other guideline companies within the same industry, and we evaluated whether changes in the Company’s business, including shifts in consumer demands and commodity prices, would affect the significant assumptions. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the change in the fair value of the venture agreement terminal obligation resulting from changes in these assumptions. We involved our valuation specialists to assist in reviewing the valuation methodology and testing the terminal growth rates and discount rates. |
Dollars in millions, except per share data | 2023 | 2022 | 2021 | |||||||||||||||||
Net sales | $ | $ | $ | |||||||||||||||||
Cost of products sold | ||||||||||||||||||||
Gross profit | ||||||||||||||||||||
Selling and administrative expenses | ||||||||||||||||||||
Advertising costs | ||||||||||||||||||||
Research and development costs | ||||||||||||||||||||
Goodwill, trademark and other asset impairments | ||||||||||||||||||||
Interest expense | ||||||||||||||||||||
Other (income) expense, net | ( | |||||||||||||||||||
Earnings before income taxes | ||||||||||||||||||||
Income taxes | ||||||||||||||||||||
Net earnings | ||||||||||||||||||||
Less: Net earnings attributable to noncontrolling interests | ||||||||||||||||||||
Net earnings attributable to Clorox | $ | $ | $ | |||||||||||||||||
Net earnings per share attributable to Clorox | ||||||||||||||||||||
Basic net earnings per share | $ | $ | $ | |||||||||||||||||
Diluted net earnings per share | $ | $ | $ | |||||||||||||||||
Weighted average shares outstanding (in thousands) | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Diluted |
Years ended June 30 | ||||||||||||||||||||
Dollars in millions | 2023 | 2022 | 2021 | |||||||||||||||||
Net earnings | $ | $ | $ | |||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||
Foreign currency adjustments, net of tax | ( | |||||||||||||||||||
Net unrealized gains (losses) on derivatives, net of tax | ( | |||||||||||||||||||
Pension and postretirement benefit adjustments, net of tax | ||||||||||||||||||||
Total other comprehensive (loss) income, net of tax | ( | |||||||||||||||||||
Comprehensive income | ||||||||||||||||||||
Less: Total comprehensive income attributable to noncontrolling interests | ||||||||||||||||||||
Total comprehensive income attributable to Clorox | $ | $ | $ |
As of June 30 | ||||||||||||||
Dollars in millions, except per share data | 2023 | 2022 | ||||||||||||
ASSETS | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Receivables, net | ||||||||||||||
Inventories, net | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property, plant and equipment, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Goodwill | ||||||||||||||
Trademarks, net | ||||||||||||||
Other intangible assets, net | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities | ||||||||||||||
Notes and loans payable | $ | $ | ||||||||||||
Current operating lease liabilities | ||||||||||||||
Accounts payable and accrued liabilities | ||||||||||||||
Income taxes payable | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Long-term operating lease liabilities | ||||||||||||||
Other liabilities | ||||||||||||||
Deferred income taxes | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Stockholders’ equity | ||||||||||||||
Preferred stock: $ | ||||||||||||||
Common stock: $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Treasury stock, at cost: | ( | ( | ||||||||||||
Accumulated other comprehensive net (loss) income | ( | ( | ||||||||||||
Total Clorox stockholders’ equity | ||||||||||||||
Noncontrolling interests | ||||||||||||||
Total stockholders’ equity | ||||||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Net (Loss) Income | Noncontrolling interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions except per share data; shares in thousands) | Amount | Shares | Retained Earnings | Amount | Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | $ | $ | $ | ( | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Clorox stockholders ($ | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Business combinations including purchase accounting adjustments | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other employee stock plan activities | — | — | ( | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock retirement | ( | ( | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Clorox stockholders ($ | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other employee stock plan activities | — | — | ( | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends to Clorox stockholders ($ | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other employee stock plan activities | — | — | ( | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | $ | ( | ( | $ | ( | $ | $ |
Years ended June 30 | ||||||||||||||||||||
Dollars in millions | 2023 | 2022 | 2021 | |||||||||||||||||
Operating activities: | ||||||||||||||||||||
Net earnings | $ | $ | $ | |||||||||||||||||
Adjustments to reconcile net earnings to net cash provided by operations: | ||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Stock-based compensation | ||||||||||||||||||||
Deferred income taxes | ( | ( | ||||||||||||||||||
Goodwill, trademark and other asset impairments | ||||||||||||||||||||
Settlement of interest rate derivative contracts | ||||||||||||||||||||
Other | ||||||||||||||||||||
Changes in: | ||||||||||||||||||||
Receivables, net | ( | ( | ||||||||||||||||||
Inventories, net | ( | ( | ||||||||||||||||||
Prepaid expenses and other current assets | ( | ( | ||||||||||||||||||
Accounts payable and accrued liabilities | ( | |||||||||||||||||||
Operating lease right-of-use assets and liabilities, net | ( | ( | ||||||||||||||||||
Income taxes payable/prepaid | ( | |||||||||||||||||||
Net cash provided by operations | ||||||||||||||||||||
Investing activities: | ||||||||||||||||||||
Capital expenditures | ( | ( | ( | |||||||||||||||||
Businesses acquired, net of cash acquired | ( | |||||||||||||||||||
Other | ( | |||||||||||||||||||
Net cash used for investing activities | ( | ( | ( | |||||||||||||||||
Financing activities: | ||||||||||||||||||||
Notes and loans payable, net | ( | |||||||||||||||||||
Long-term debt repayments | ( | |||||||||||||||||||
Long-term debt borrowings, net of issuance costs paid | ||||||||||||||||||||
Treasury stock purchased | ( | ( | ||||||||||||||||||
Cash dividends paid to Clorox stockholders | ( | ( | ( | |||||||||||||||||
Cash dividends paid to noncontrolling interests | ( | ( | ( | |||||||||||||||||
Issuance of common stock for employee stock plans and other | ||||||||||||||||||||
Net cash used for financing activities | ( | ( | ( | |||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ( | ||||||||||||||||||
Cash, cash equivalents and restricted cash: | ||||||||||||||||||||
Beginning of year | ||||||||||||||||||||
End of year | $ | $ | $ | |||||||||||||||||
Supplemental cash flow information: | ||||||||||||||||||||
Interest paid | $ | $ | $ | |||||||||||||||||
Income taxes paid, net of refunds | ||||||||||||||||||||
Noncash financing activities: | ||||||||||||||||||||
Cash dividends declared and accrued, but not paid |
Estimated Useful Lives | |||||
Buildings and leasehold improvements | |||||
Land improvements | |||||
Machinery and equipment | |||||
Computer equipment | |||||
Capitalized software costs |
Joint Venture | |||||
Goodwill | $ | ||||
Reacquired rights (included in Other intangible assets, net) | |||||
Property, plant and equipment | |||||
Customer relationships (included in Other intangible assets, net) | |||||
Working capital, net (includes cash acquired of $ | |||||
Noncurrent liabilities, net | ( | ||||
Deferred income taxes | ( | ||||
Total fair value of net assets | |||||
Less: Fair value of noncontrolling interests | ( | ||||
Less: Fair value of previously held equity interest | ( | ||||
Total purchase consideration | $ |
2023 | ||||||||
$ | ( | |||||||
( | ||||||||
Other (income) expense, net: | ||||||||
Total, net | $ | |||||||
Employee-Related Costs | Other | Total | |||||||||||||||
Accrual Balance as of June 30, 2022 | $ | $ | $ | ||||||||||||||
Charges | |||||||||||||||||
Cash payments | ( | ( | ( | ||||||||||||||
Accrual Balance as of June 30, 2023 | $ | $ | $ |
2023 | 2022 | ||||||||||
Finished goods | $ | $ | |||||||||
Raw materials and packaging | |||||||||||
Work in process | |||||||||||
LIFO allowances | ( | ( | |||||||||
Total inventories, net | |||||||||||
Non-current inventories, net (1) | |||||||||||
Total current inventories, net | $ | $ |
2023 | 2022 | ||||||||||
Land and improvements | $ | $ | |||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Capitalized software costs | |||||||||||
Computer equipment | |||||||||||
Construction in progress | |||||||||||
Total | |||||||||||
Less: Accumulated depreciation and amortization | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ | |||||||||
Goodwill | |||||||||||||||||||||||||||||||||||
Health and Wellness (1) | Household | Lifestyle | International | Corporate and Other (1) | Total | ||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Effect of foreign currency translation | ( | ( | |||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Goodwill impairment | ( | ( | |||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | $ | $ | $ |
As of June 30, 2023 | As of June 30, 2022 | ||||||||||||||||||||||||||||||||||
Gross carrying amount | Accumulated amortization / Impairments | Net carrying amount | Gross carrying amount | Accumulated amortization / Impairments | Net carrying amount | ||||||||||||||||||||||||||||||
Trademarks with indefinite lives (1) | $ | $ | — | $ | $ | $ | — | $ | |||||||||||||||||||||||||||
Trademarks with finite lives (1) | |||||||||||||||||||||||||||||||||||
Other intangible assets with finite lives | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Impairment Charges | |||||||||||
VMS reporting unit | International reporting unit | Total | |||||||||
Goodwill | $ | $ | $ | ||||||||
Trademarks, net | |||||||||||
Total | $ | $ | $ |
Impairment Charges | |||||
VMS reporting unit | |||||
Goodwill | $ | ||||
Trademarks, net | |||||
Other intangible assets, net | |||||
Property, plant and equipment, net | |||||
Total | $ |
2023 | 2022 | ||||||||||
Accounts payable | $ | $ | |||||||||
Compensation and employee benefit costs | |||||||||||
Trade and sales promotion costs | |||||||||||
Dividends | |||||||||||
Other | |||||||||||
Total | $ | $ |
2023 | 2022 | ||||||||||
Senior unsecured notes and debentures: | |||||||||||
Total | |||||||||||
Less: Current maturities of long-term debt | |||||||||||
Long-term debt | $ | $ |
2023 | 2022 | ||||||||||
Revolving credit facility | $ | $ | |||||||||
Foreign and other credit lines | |||||||||||
Total | $ | $ |
2023 | 2022 | ||||||||||
Venture Agreement terminal obligation, net | $ | $ | |||||||||
Employee benefit obligations | |||||||||||
Taxes | |||||||||||
Environmental liabilities | |||||||||||
Other | |||||||||||
Total | $ | $ |
Gains (losses) recognized in Other comprehensive (loss) income | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Commodity purchase derivative contracts | $ | ( | $ | $ | |||||||||||||
Foreign exchange derivative contracts | |||||||||||||||||
Interest rate derivative contracts | |||||||||||||||||
Total | $ | ( | $ | $ |
Location of gains (losses) reclassified from Accumulated other comprehensive net (loss) income into Net earnings | Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | |||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
Commodity purchase derivative contracts | Cost of products sold | $ | $ | $ | ||||||||||||||||
Foreign exchange derivative contracts | Cost of products sold | |||||||||||||||||||
Interest rate derivative contracts | Interest expense | ( | ( | |||||||||||||||||
Total | $ | $ | $ | ( |
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Balance Sheet Classification | Fair Value Hierarchy Level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Commodity purchase options contracts | Prepaid expenses and other current assets | 1 | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commodity purchase swaps contracts | Prepaid expenses and other current assets | 2 | |||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other current assets | 2 | |||||||||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Commodity purchase futures contracts | Accounts payable and accrued liabilities | 1 | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commodity purchase swaps contracts | Accounts payable and accrued liabilities | 2 | |||||||||||||||||||||||||||||||||
$ | $ | $ | $ |
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Balance sheet classification | Fair value hierarchy level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Interest-bearing investments, including money market funds | Cash and cash equivalents (1) | 1 | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Time deposits | Cash and cash equivalents (1) | 2 | |||||||||||||||||||||||||||||||||
Trust assets for nonqualified deferred compensation plans | Other assets | 1 | |||||||||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Notes and loans payable | Notes and loans payable (2) | 2 | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Current maturities of long-term debt and Long-term debt | Current maturities of long- term debt and Long-term debt (3) | 2 | |||||||||||||||||||||||||||||||||
$ | $ | $ | $ |
Year | Purchase Obligations | ||||
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total | $ |
Balance sheet classification | 2023 | 2022 | ||||||||||||
Operating leases | ||||||||||||||
Right-of-use assets | Operating lease right-of-use assets | $ | $ | |||||||||||
Current lease liabilities | Current operating lease liabilities | $ | $ | |||||||||||
Non-current lease liabilities | Long-term operating lease liabilities | |||||||||||||
Total operating lease liabilities | $ | $ | ||||||||||||
Finance leases | ||||||||||||||
Right-of-use assets | $ | $ | ||||||||||||
Current lease liabilities | $ | $ | ||||||||||||
Non-current lease liabilities | ||||||||||||||
Total finance lease liabilities | $ | $ |
2023 | 2022 | |||||||||||||
Operating lease cost | $ | $ | ||||||||||||
Finance lease cost: | ||||||||||||||
Amortization of right-of-use assets | $ | $ | ||||||||||||
Interest on lease liabilities | ||||||||||||||
Total finance lease cost | $ | $ | ||||||||||||
Variable lease cost | $ | $ | ||||||||||||
Short term lease cost | $ | $ |
2023 | 2022 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases, net | $ | $ | |||||||||
Operating cash flows from finance leases | |||||||||||
Financing cash flows from finance leases | |||||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | $ | $ | |||||||||
Finance leases |
2023 | |||||
Weighted-average remaining lease term: | |||||
Operating leases | |||||
Finance leases | |||||
Weighted-average discount rate: | |||||
Operating leases | % | ||||
Finance leases | % |
Year | Operating leases | Finance leases | |||||||||
2024 | $ | $ | |||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
Thereafter | |||||||||||
Total lease payments | $ | $ | |||||||||
Less: Imputed interest | |||||||||||
Total lease liabilities | $ | $ |
2023 | 2022 | 2021 | |||||||||||||||
Dividends per share paid | $ | $ | $ |
Foreign currency translation adjustments | Net unrealized gains (losses) on derivatives | Pension and postretirement benefit adjustments | Accumulated other comprehensive net (loss) income | ||||||||||||||||||||
Balance June 30, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive (loss) income before reclassifications | ( | ||||||||||||||||||||||
Amounts reclassified from Accumulated other comprehensive net (loss) income | ( | ||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | ( | ( | |||||||||||||||||||
Net current period other comprehensive (loss) income | |||||||||||||||||||||||
Balance June 30, 2021 | ( | ( | ( | ||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | ( | ||||||||||||||||||||||
Amounts reclassified from Accumulated other comprehensive net (loss) income | ( | ||||||||||||||||||||||
Income tax benefit (expense) | ( | ||||||||||||||||||||||
Net current period other comprehensive (loss) income | ( | ||||||||||||||||||||||
Balance June 30, 2022 | ( | ( | ( | ||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from Accumulated other comprehensive net (loss) income | ( | ( | |||||||||||||||||||||
Income tax benefit (expense) | ( | ||||||||||||||||||||||
Net current period other comprehensive (loss) income | ( | ( | |||||||||||||||||||||
Balance June 30, 2023 | $ | ( | $ | $ | ( | $ | ( |
2023 | 2022 | 2021 | |||||||||||||||
Basic | |||||||||||||||||
Dilutive effect of stock options and other | |||||||||||||||||
Diluted | |||||||||||||||||
Antidilutive stock options and other |
2023 | 2022 | 2021 | |||||||||||||||
Cost of products sold | $ | $ | $ | ||||||||||||||
Selling and administrative expenses | |||||||||||||||||
Research and development costs | |||||||||||||||||
Total compensation costs | $ | $ | $ | ||||||||||||||
Related income tax benefit | $ | $ | $ |
2023 | 2022 | 2021 | |||||||||||||||
Expected life | |||||||||||||||||
Weighted-average expected life | |||||||||||||||||
Expected volatility | |||||||||||||||||
Weighted-average volatility | |||||||||||||||||
Risk-free interest rate | |||||||||||||||||
Weighted-average risk-free interest rate | |||||||||||||||||
Dividend yield | |||||||||||||||||
Weighted-average dividend yield |
Number of Shares (In thousands) | Weighted- Average Exercise Price per Share | Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||||||||
Options outstanding as of June 30, 2022 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Canceled | ( | ||||||||||||||||||||||
Options outstanding as of June 30, 2023 | $ | $ | |||||||||||||||||||||
Options vested as of June 30, 2023 | $ | $ |
Number of Shares (In thousands) | Weighted-Average Grant Date Fair Value per Share | ||||||||||
Restricted stock awards as of June 30, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Restricted stock awards as of June 30, 2023 | $ |
Number of Shares (In thousands) | Weighted-Average Grant Date Fair Value per Share | ||||||||||
Performance share awards as of June 30, 2022 | $ | ||||||||||
Granted | $ | ||||||||||
Distributed | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Performance share awards as of June 30, 2023 | $ | ||||||||||
Performance shares vested and deferred as of June 30, 2023 | $ |
2023 | 2022 | 2021 | |||||||||||||||
Amortization of trademarks and other intangible assets | $ | $ | $ | ||||||||||||||
Trust investment (gains) losses, net | ( | ( | |||||||||||||||
Net periodic benefit cost | |||||||||||||||||
Foreign exchange transaction (gains) losses, net | |||||||||||||||||
Income from equity investees | ( | ( | ( | ||||||||||||||
Interest income | ( | ( | ( | ||||||||||||||
Restructuring costs (1) | |||||||||||||||||
Gain on sale-leaseback transaction | ( | ||||||||||||||||
Gain on previously held equity investment (2) | ( | ||||||||||||||||
Other | ( | ( | |||||||||||||||
Total | $ | $ | $ | ( |
2023 | 2022 | 2021 | |||||||||||||||
Current | |||||||||||||||||
Federal | $ | $ | $ | ||||||||||||||
State | |||||||||||||||||
Foreign | |||||||||||||||||
Total current | $ | $ | $ | ||||||||||||||
Deferred | |||||||||||||||||
Federal | $ | ( | $ | $ | ( | ||||||||||||
State | ( | ( | ( | ||||||||||||||
Foreign | ( | ||||||||||||||||
Total deferred | ( | ( | |||||||||||||||
Total | $ | $ | $ |
2023 | 2022 | 2021 | |||||||||||||||
United States | $ | $ | $ | ||||||||||||||
Foreign | |||||||||||||||||
Total | $ | $ | $ |
2023 | 2022 | 2021 | |||||||||||||||
Statutory federal tax rate | % | % | % | ||||||||||||||
State taxes (net of federal tax benefits) | |||||||||||||||||
Foreign tax rate differential | |||||||||||||||||
Federal excess tax benefits | ( | ( | ( | ||||||||||||||
Net U.S. tax on foreign income | ( | ( | ( | ||||||||||||||
VMS goodwill impairment | |||||||||||||||||
Federal research and development credits | ( | ( | ( | ||||||||||||||
Other differences | ( | ( | |||||||||||||||
Effective tax rate | % | % | % |
2023 | 2022 | ||||||||||
Deferred tax assets | |||||||||||
Compensation and benefit programs | $ | $ | |||||||||
Net operating loss and tax credit carryforwards | |||||||||||
Operating and finance lease liabilities | |||||||||||
Accruals and reserves | |||||||||||
Capitalized research and development | |||||||||||
Inventory costs | |||||||||||
Other | |||||||||||
Subtotal | |||||||||||
Valuation allowance | ( | ( | |||||||||
Total deferred tax assets | $ | $ | |||||||||
Deferred tax liabilities | |||||||||||
Fixed and intangible assets | $ | ( | $ | ( | |||||||
Lease right-of-use assets | ( | ( | |||||||||
Other | ( | ( | |||||||||
Total deferred tax liabilities | ( | ( | |||||||||
Net deferred tax assets (liabilities) | $ | $ | ( | ||||||||
The net deferred tax assets and liabilities included in the consolidated balance sheet at June 30 were as follows: | |||||||||||
Net deferred tax assets (1) | $ | $ | |||||||||
Net deferred tax liabilities | ( | ( | |||||||||
Net deferred tax assets (liabilities) | $ | $ | ( |
2023 | 2022 | 2021 | |||||||||||||||
Valuation allowance at beginning of year | $ | ( | $ | ( | $ | ( | |||||||||||
Net decrease/(increase) for other foreign deferred tax assets | ( | ( | ( | ||||||||||||||
Net decrease/(increase) for foreign and U.S. net operating loss carryforwards and tax credits | ( | ( | ( | ||||||||||||||
Valuation allowance at end of year | $ | ( | $ | ( | $ | ( |
2023 | 2022 | 2021 | |||||||||||||||
Unrecognized tax benefits at beginning of year | $ | $ | $ | ||||||||||||||
Gross increases - tax positions in prior periods | |||||||||||||||||
Gross decreases - tax positions in prior periods | ( | ( | ( | ||||||||||||||
Gross increases - current period tax positions | |||||||||||||||||
Gross decreases - current period tax positions | |||||||||||||||||
Lapse of applicable statute of limitations | ( | ||||||||||||||||
Settlements | |||||||||||||||||
Unrecognized tax benefits at end of year | $ | $ | $ |
Retirement Income | Retirement Health Care | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Change in benefit obligations: | |||||||||||||||||||||||
Benefit obligation as of beginning of year | $ | $ | $ | $ | |||||||||||||||||||
Service cost | |||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Actuarial loss (gain) | ( | ( | ( | ( | |||||||||||||||||||
Plan amendments | ( | ||||||||||||||||||||||
Translation and other adjustments | ( | ||||||||||||||||||||||
Plan settlement | ( | ||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | |||||||||||||||||||
Benefit obligation as of end of year | $ | $ | $ | $ | |||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||
Fair value of assets as of beginning of year | $ | $ | $ | $ | |||||||||||||||||||
Actual return on plan assets | ( | ||||||||||||||||||||||
Employer contributions | |||||||||||||||||||||||
Plan Settlement | ( | ||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | |||||||||||||||||||
Translation and other adjustments | ( | ( | |||||||||||||||||||||
Fair value of plan assets as of end of year | |||||||||||||||||||||||
Accrued benefit cost, net funded status | $ | ( | $ | ( | $ | ( | $ | ( |
Amount recognized in the balance sheets consists of: | |||||||||||||||||||||||
Pension benefit assets | $ | $ | $ | $ | |||||||||||||||||||
Current accrued benefit liability | ( | ( | ( | ( | |||||||||||||||||||
Non-current accrued benefit liability | ( | ( | ( | ( | |||||||||||||||||||
Accrued benefit cost, net | $ | ( | $ | ( | $ | ( | $ | ( |
ABO Exceeds the Fair Value of Plan Assets | PBO Exceeds the Fair Value of Plan Assets | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Projected benefit obligation | $ | $ | $ | $ | |||||||||||||
Accumulated benefit obligation | |||||||||||||||||
Fair value of plan assets |
Retirement Income | Retirement Health Care | ||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ||||||||||||||||||||||||||||||||
Settlement loss recognized | |||||||||||||||||||||||||||||||||||
Amortization of unrecognized items | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | $ | ( |
Retirement Income | Retirement Health Care | ||||||||||
Net actuarial loss (gain) | $ | $ | ( | ||||||||
Prior service benefit | ( | ||||||||||
Net deferred income tax (assets) liabilities | ( | ||||||||||
Accumulated other comprehensive loss (income) | $ | $ | ( |
Retirement Income | Retirement Health Care | ||||||||||
Net actuarial loss (gain) as of beginning of year | $ | $ | ( | ||||||||
Amortization during the year | ( | ||||||||||
Loss (gain) during the year | ( | ||||||||||
Net actuarial loss (gain) as of end of year | $ | $ | ( |
Retirement Income | Retirement Health Care | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Discount rate | % | % | % | % | |||||||||||||||||||
Rate of compensation increase | % | % | n/a | n/a | |||||||||||||||||||
Interest crediting rate | % | % | n/a | n/a |
Retirement Income | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Discount rate | % | % | % | ||||||||||||||
Rate of compensation increase | % | % | % | ||||||||||||||
Expected return on plan assets | % | % | % | ||||||||||||||
Interest crediting rate | % | % | % | ||||||||||||||
Retirement Health Care | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Discount rate | % | % | % |
Retirement Income | Retirement Health Care | ||||||||||
2024 | $ | $ | |||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
Fiscal years 2029 through 2033 |
% Target Allocation | % of Plan Assets | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Fixed income | % | % | % | % | |||||||||||||||||||
Cash equivalents | % | % | % | % | |||||||||||||||||||
Total | % | % | % | % |
2023 | 2022 | ||||||||||
Cash equivalents — Level 1 | |||||||||||
Total assets in the fair value hierarchy | |||||||||||
Common collective trusts measured at net asset value | |||||||||||
Bond funds | $ | $ | |||||||||
International equity funds | |||||||||||
Domestic equity funds | |||||||||||
Short-term investment fund | |||||||||||
Real estate fund | |||||||||||
Total common collect trust measured at net asset value | $ | $ | |||||||||
Total assets at fair value | $ | $ |
Net Sales | |||||||||||||||||
Fiscal year | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Health and Wellness | $ | $ | $ | ||||||||||||||
Household | |||||||||||||||||
Lifestyle | |||||||||||||||||
International | |||||||||||||||||
Corporate and Other | |||||||||||||||||
Total | $ | $ | $ |
Segment Adjusted Earnings (losses) before interest and income taxes | |||||||||||||||||
Fiscal year | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Health and Wellness | $ | $ | $ | ||||||||||||||
Household | |||||||||||||||||
Lifestyle | |||||||||||||||||
International | |||||||||||||||||
Corporate and Other | ( | ( | ( | ||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Interest income | |||||||||||||||||
Interest expense | ( | ( | ( | ||||||||||||||
VMS impairments (1) (2) | ( | ( | |||||||||||||||
Professional Products supplier charge (3) | ( | ||||||||||||||||
Saudi JV acquisition gain (4) | |||||||||||||||||
Streamlined operating model (5) | ( | ||||||||||||||||
Digital capabilities and productivity enhancements investment (6) | ( | ( | |||||||||||||||
Earnings (losses) before income taxes | $ | $ | $ |
2023 | |||||||||||
Health and Wellness | % | ||||||||||
Household | |||||||||||
Lifestyle | |||||||||||
International | |||||||||||
Corporate and Other | |||||||||||
Total | % |
Fiscal Year | Health and Wellness | Household | Lifestyle | International | Corporate and Other | Total Company | |||||||||||||||||||||||||||||||||||
(Income) Loss from equity investees included in Other (income) expense, net | 2023 | ( | ( | ||||||||||||||||||||||||||||||||||||||
2022 | ( | ( | |||||||||||||||||||||||||||||||||||||||
2021 | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total assets | 2023 | ||||||||||||||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 2023 | ||||||||||||||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 2023 | ||||||||||||||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||||||||
Significant noncash charges included in earnings (losses) before interest and income taxes: | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 2023 | ||||||||||||||||||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||||||||||||||
2021 |
2023 | 2022 | 2021 | ||||||||||||||||||
Cleaning | % | % | % | |||||||||||||||||
Professional Products | % | % | % | |||||||||||||||||
Health and Wellness | % | % | % | |||||||||||||||||
Bags and Wraps | % | % | % | |||||||||||||||||
Cat Litter | % | % | % | |||||||||||||||||
Grilling | % | % | % | |||||||||||||||||
Household | % | % | % | |||||||||||||||||
Food | % | % | % | |||||||||||||||||
Natural Personal Care | % | % | % | |||||||||||||||||
Water Filtration | % | % | % | |||||||||||||||||
Lifestyle | % | % | % | |||||||||||||||||
International | % | % | % | |||||||||||||||||
Corporate and Other | % | % | % | |||||||||||||||||
Total | % | % | % |
2023 | 2022 | 2021 | |||||||||||||||
Cleaning products | % | % | % | ||||||||||||||
Bags and wraps | % | % | % | ||||||||||||||
Food products | % | % | % | ||||||||||||||
Cat litter products | % | % | % |
Fiscal Year | United States | Foreign | Total Company | ||||||||||||||||||||
Net sales | 2023 | $ | $ | $ | |||||||||||||||||||
2022 | |||||||||||||||||||||||
2021 | |||||||||||||||||||||||
Property, plant and equipment, net | 2023 | ||||||||||||||||||||||
2022 |
Dollars in millions | FY23 | FY22 | FY21 | |||||||||||||||||
Earnings before income taxes | $ | 238 | $ | 607 | $ | 900 | ||||||||||||||
Add back: | ||||||||||||||||||||
Certain U.S. GAAP charges (2) | 605 | 61 | 357 | |||||||||||||||||
Interest expense | 90 | 106 | 99 | |||||||||||||||||
Less: | ||||||||||||||||||||
Saudi JV acquisition gain (2) | — | — | (82) | |||||||||||||||||
Earnings before income taxes, certain U.S. GAAP items and interest expense | 933 | 774 | 1,274 | |||||||||||||||||
Less: | ||||||||||||||||||||
Income taxes on earnings before income taxes, certain U.S. GAAP items and interest expense (3) | 220 | 174 | 264 | |||||||||||||||||
Adjusted after tax profit | 713 | 600 | 1,010 | |||||||||||||||||
Less: After tax profit attributable to noncontrolling interests | 12 | 9 | 9 | |||||||||||||||||
Adjusted after tax profit attributable to Clorox | 701 | 591 | 1,001 | |||||||||||||||||
Average capital employed (4) | 3,383 | 3,428 | 3,655 | |||||||||||||||||
Less: Capital charge (5) | 304 | 309 | 329 | |||||||||||||||||
Economic profit (1) (Adjusted after tax profit attributable to Clorox less capital charge) | $ | 397 | $ | 282 | $ | 672 | ||||||||||||||
Dollars in millions | FY23 | FY22 | FY21 | |||||||||||||||||
Total assets | $ | 5,945 | $ | 6,158 | $ | 6,334 | ||||||||||||||
Less: | ||||||||||||||||||||
Accounts payable and accrued liabilities (6) | 1,650 | 1,463 | 1,670 | |||||||||||||||||
Current operating lease liabilities | 87 | 78 | 81 | |||||||||||||||||
Income taxes payable | 121 | — | — | |||||||||||||||||
Long-term operating lease liabilities | 310 | 314 | 301 | |||||||||||||||||
Other liabilities (6) | 804 | 778 | 819 | |||||||||||||||||
Deferred income taxes | 28 | 66 | 67 | |||||||||||||||||
Non-interest bearing liabilities | 3,000 | 2,699 | 2,938 | |||||||||||||||||
Total capital employed (4) | 2,945 | 3,459 | 3,396 | |||||||||||||||||
After tax certain U.S. GAAP items (2) | 362 | — | 212 | |||||||||||||||||
Adjusted capital employed (4) | $ | 3,307 | $ | 3,459 | $ | 3,608 | ||||||||||||||
Average capital employed | $ | 3,383 | $ | 3,428 | $ | 3,655 |
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Audit Information |
12 Months Ended |
---|---|
Jun. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | San Francisco, CA |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 161 | $ 471 | $ 719 |
Other comprehensive (loss) income: | |||
Foreign currency adjustments, net of tax | 3 | (45) | 47 |
Net unrealized gains (losses) on derivatives, net of tax | (22) | 100 | 39 |
Pension and postretirement benefit adjustments, net of tax | 5 | 12 | 8 |
Total other comprehensive (loss) income, net of tax | (14) | 67 | 94 |
Comprehensive income | 147 | 538 | 813 |
Less: Total comprehensive income attributable to noncontrolling interests | 12 | 9 | 9 |
Total comprehensive income attributable to Clorox | $ 135 | $ 529 | $ 804 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Statement of Financial Position [Abstract] | ||
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) | 130,741,461 | 130,741,461 |
Common stock, shares outstanding (in shares) | 123,820,022 | 123,152,132 |
Treasury stock, common (in shares) | 6,921,439 | 7,589,329 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
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Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Statement of Stockholders' Equity [Abstract] | |||
Dividends per share declared (in dollars per share) | $ 4.72 | $ 3.48 | $ 4.49 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Basis of Presentation The Company is principally engaged in the production, marketing and sale of consumer products through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, drug, pet and military stores, third-party and owned e-commerce channels, and distributors. The consolidated financial statements include the statements of the Company and its wholly owned and controlled subsidiaries. All significant intercompany transactions and accounts were eliminated in consolidation. Use of Estimates The preparation of these consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) requires management to reach opinions as to estimates and assumptions that affect reported amounts and related disclosures. Specific areas requiring the application of management’s estimates and judgments include, among others, assumptions pertaining to accruals for consumer and trade-promotion programs, future cash flows associated with impairment testing of goodwill and other long-lived assets, uncertain tax positions, tax valuation allowances, the valuation of the Venture Agreement terminal obligation, stock-based compensation, retirement income plans, as well as legal, environmental and insurance matters, and the valuation of assets acquired and liabilities assumed in connection with a business combination. Actual results could materially differ from estimates and assumptions made. Cash, Cash Equivalents and Restricted Cash Cash equivalents consist of highly liquid interest-bearing accounts, time deposits held by financial institutions and money market funds with an initial maturity at purchase of 90 days or less. The fair value of cash and cash equivalents approximates the carrying amount. The Company’s cash position includes amounts held by foreign subsidiaries and, as a result, the repatriation of certain cash balances from some of the Company’s foreign subsidiaries could result in additional withholding tax costs in certain foreign jurisdictions. However, these cash balances are generally available without legal restriction to fund local business operations. In addition, a portion of the Company’s cash balance is held in U.S. dollars by foreign subsidiaries whose functional currency is their local currency. Such U.S. dollar balances are reported on the foreign subsidiaries’ books in their functional currency, and the impact on such balances from foreign currency exchange rate differences is recorded in Other (income) expense, net. As of June 30, 2023, 2022, 2021 and 2020, the Company had $1, $3, $5 and $8 of restricted cash, respectively, which was included in Prepaid expenses and other current assets and Other assets. Inventories The Company values its inventories using both the First-In, First-Out (FIFO) and the Last-In, First-Out (LIFO) methods. The FIFO inventory is stated at the lower of cost or net realizable value, which includes any costs to sell or dispose. In addition, appropriate consideration is given to obsolescence, excessive inventory levels, product deterioration and other factors in evaluating net realizable value. The LIFO inventory is stated at the lower of cost or market. Property, Plant and Equipment and Finite-Lived Intangible Assets Property, plant and equipment and finite-lived intangible assets are stated at cost. Depreciation and amortization expense are primarily calculated by the straight-line method using the estimated useful lives or lives determined by reference to the related lease contract in the case of leasehold improvements. The table below provides estimated useful lives of property, plant and equipment by asset classification.
Finite-lived intangible assets are amortized over their estimated useful lives, which range from 7 to 30 years. Property, plant and equipment and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances occur that indicate that the carrying amount of an asset (or asset group) may not be fully recoverable. The risk of impairment is initially assessed based on an estimate of the undiscounted cash flows at the lowest level for which identifiable cash flows exist. Impairment occurs when the carrying value of the asset (or asset group) exceeds the estimated future undiscounted cash flows generated by the asset (or asset group). When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset (or asset group) and its estimated fair market value. Depending on the asset, estimated fair market value may be determined either by use of a discounted cash flow model or by reference to estimated selling values of assets in similar condition. Capitalization of Software Costs The Company capitalizes certain qualifying costs incurred in the acquisition and development of software for internal use, including the costs of the software, materials, consultants, interest and payroll and payroll-related costs for employees during the application development stage. Internal and external costs incurred during the preliminary project stage and post implementation-operation stage, mainly training and maintenance costs, are expensed as incurred. Once the application is substantially complete and ready for its intended use, qualifying costs are amortized on a straight-line basis over the software’s estimated useful life. Capitalized internal use software is included in Property, plant and equipment. Capitalized software as a service is included in Prepaid expenses and other current assets or Other assets and is amortized using the straight-line method over the term of the hosting arrangement which is typically no greater than 10 years. Business Combinations The Company records acquired businesses within the consolidated financial statements using the acquisition method prospectively from the acquisition date. Under the acquisition method, once control is obtained, assets acquired and liabilities assumed, including amounts attributable to noncontrolling interests, are recorded at their respective fair values on the acquisition date. The Company’s estimates of fair value are inherently uncertain and subject to refinement. The excess of the total of the purchase consideration, fair value of the noncontrolling interest and fair value of the previously held equity interest over the identifiable assets acquired and liabilities assumed is recorded as goodwill. Measurement period adjustments to the fair values of the identifiable assets acquired and liabilities assumed with the corresponding offset to goodwill, if applicable, are applied in the reporting period in which the adjustment amounts are determined based on new information obtained during the measurement period. In the event of a step acquisition, the Company records a gain or loss in Other income (expense), net on the consolidated statement of earnings as a result of remeasuring a previously held equity interest to fair value on the acquisition date. Transaction expenses are recognized separately from the business combination and are expensed as incurred. Impairment Review of Goodwill and Indefinite-Lived Intangible Assets The Company tests its goodwill, trademarks with indefinite lives and other indefinite-lived intangible assets annually for impairment in the fiscal fourth quarter unless there are indications during a different interim period that these assets may have become impaired. With respect to goodwill, the Company has the option to first assess qualitative factors, such as the maturity and stability of the reporting unit, the magnitude of the excess fair value over carrying value from a previous period’s impairment testing, other reporting unit specific operating results, microeconomic and macroeconomic factors, as well as new events and circumstances impacting the operations at the reporting unit level. The Company operates through strategic business units (SBUs) that are organized into the Company's operating segments. Reporting units for goodwill impairment testing purposes were identified as the Company's individual operating segments. If the result of a qualitative test indicates a potential for impairment of a reporting unit, a quantitative test is performed. In the quantitative test, the Company compares the estimated fair value of the reporting unit to its carrying value. If the estimated fair value of any reporting unit is less than its carrying value, an impairment charge is recorded for the difference between the carrying value and the fair value of the reporting unit. To determine the fair value of a reporting unit as part of its quantitative test, the Company uses the discounted cash flow (DCF) method under the income approach, as it believes that this approach is the most reliable indicator of the fair value of its businesses and the fair value of its future earnings and cash flows. Under this approach, which requires significant judgments, the Company estimates the future cash flows of each reporting unit and discounts these cash flows at a rate of return that reflects their relative risk. The cash flows used in the DCF method are consistent with those the Company uses in its internal planning, which gives consideration to actual business trends experienced, and the broader business strategy for the long term. The other key estimates and factors used in the DCF method include, but are not limited to, net sales and expense growth rates, commodity prices, foreign exchange rates, inflation and a terminal growth rate. Changes in such estimates or the application of alternative assumptions could produce different results. For trademarks and other intangible assets with indefinite lives, the Company has the option to first assess qualitative factors, such as the maturity and stability of the trademark or other intangible asset, the magnitude of the excess fair value over carrying value from a previous period’s impairment testing, other specific operating results, as well as new events and circumstances impacting the significant inputs used to determine the fair value of the intangible asset. If the result of a qualitative test indicates that it is more likely than not that the asset is impaired, a quantitative test is performed. When a quantitative test is performed, the estimated fair value of an asset is compared to its carrying value. If the carrying value of such asset exceeds its estimated fair value, an impairment charge is recorded for the difference between the carrying value and the estimated fair value. The Company uses the DCF method under the relief from royalty income approach to estimate the fair value of its trademarks and other intangible assets with indefinite lives. This approach requires significant judgments in determining the royalty rates and the assets’ estimated cash flows, as well as the appropriate discount and foreign exchange rates applied to those cash flows to determine fair value. Changes in such estimates or the use of alternative assumptions could produce different results. Leases The Company determines whether an arrangement contains a lease at inception by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration and other facts and circumstances. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are calculated based on the lease liability adjusted for any lease payments paid to the lessor at or before the commencement date and initial direct costs incurred by the Company and excludes any lease incentives received from the lessor. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. The lease term may include an option to extend or terminate the lease when it is reasonably certain that the Company will exercise that option as of the commencement date of the lease, and is reviewed in subsequent periods if a triggering event occurs. As the Company’s leases typically do not contain a readily determinable implicit rate, the Company determines the present value of the lease liability using its incremental borrowing rate at the lease commencement date based on the lease term and the currency of the lease on a collateralized basis. Variable lease payments are the portion of lease payments that are not fixed over the lease term. Variable lease payments are expensed as incurred, and include certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease, as applicable. The Company elected to combine lease and non-lease components as a single lease component and to exclude short-term leases, defined as leases with an initial term of 12 months or less, from its consolidated balance sheet. Restructuring Liabilities The Company incurs restructuring costs in connection with workforce reductions; consolidation or closure of a facility; sale or termination of a line of business; and other actions. Such costs include employee termination benefits (one-time arrangements and benefits attributable to prior service), termination of contractual obligations, noncash asset charges and other direct incremental costs. The Company records employee termination liabilities once they are both probable and estimable for severance provided under the Company’s existing severance policy. Employee termination liabilities outside of the Company’s existing severance policy are recognized at the time relevant employees are notified, unless the employees will be retained to render service beyond a minimum retention period for transition purposes, in which case the liability is recognized ratably over the future service period. Other costs associated with a restructuring plan or exit or disposal activities, such as consulting and professional fees, facility exit costs, employee relocation, outplacement costs, accelerated depreciation or asset impairments associated with a restructuring plan, are recognized in the period in which the liability is incurred or the asset is impaired. Stock-based Compensation The Company grants various nonqualified stock-based compensation awards to eligible employees, including stock options, restricted stock awards and performance shares. For stock options, the Company estimates the fair value of each award on the date of grant using the Black-Scholes valuation model, which requires management to make estimates regarding expected option life, stock price volatility and other assumptions. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The Company estimates stock option forfeitures based on historical data for each employee grouping. The total number of stock options expected to vest is adjusted by actual and estimated forfeitures. Changes to the actual and estimated forfeitures will result in a cumulative adjustment in the period of change. Compensation expense is recorded by amortizing the grant date fair values on a straight-line basis over the vesting period, adjusted for estimated forfeitures. For restricted stock awards, the fair value of each grant issued is estimated on the date of grant based on the current market price of the stock. Forfeitures are estimated based on historical data. The total number of restricted stock awards expected to vest is adjusted by actual and estimated forfeitures. Changes to the actual and estimated forfeitures will result in a cumulative adjustment in the period of change. Compensation expense is recorded by amortizing the grant date fair values on a straight-line basis over the vesting period, adjusted for estimated forfeitures. The Company’s performance shares provide for the issuance of common stock to certain managerial staff and executive management if the Company achieves specified performance targets. The number of shares issued is dependent upon the achievement of specified performance targets. The performance period is three years and the payout determination is made at the end of the three-year performance period. Performance shares receive dividends earned during the vesting period upon vesting. The fair value of each grant issued is estimated on the date of grant based on the current market price of the stock. The total amount of compensation expense recognized reflects estimated forfeiture rates and management’s assessment of the probability that performance goals will be achieved. A cumulative adjustment is recognized to compensation expense in the current period to reflect any changes in the probability of achievement of performance goals. Cash flows resulting from tax deductions in excess of the cumulative compensation cost recognized for stock-based payment arrangements (excess tax benefits) are classified as operating cash inflows. Employee Benefits The Company accounts for its retirement income and retirement health care plans using actuarial methods. These methods use an attribution approach that generally spreads “plan events” over the service lives or expected lifetime (for frozen plans) of plan participants. Examples of plan events are plan amendments and changes in actuarial assumptions such as the expected return on plan assets, discount rate, rate of compensation increase and certain employee-related factors, such as retirement age and mortality. The principle underlying the attribution approach is that employees render service over their employment period on a relatively “smooth” basis and, therefore, the statement of earnings effects of retirement income and retirement health care plans are recognized in the same pattern. One of the principal assumptions used in the net periodic benefit cost calculation is the expected return on plan assets. The expected return on plan assets may result in recognized expense or income that differs from the actual returns of those plan assets in any given year. Over time, however, the goal is for the expected long-term returns to approximate the actual returns and, therefore, the expectation is that the pattern of income and expense recognition should closely match the pattern of the services provided by the participants. The Company uses a market-related value method for calculating plan assets for purposes of determining the amortization of actuarial gains and losses. The differences between actual and expected returns are recognized in the net periodic benefit cost calculation over the average remaining service period or expected lifetime (for frozen plans) of the plan participants using the corridor approach. Under this approach, only actuarial gains (losses) that exceed 5% of the greater of the projected benefit obligation or the market-related value of assets are amortized to the Company’s net periodic benefit cost. In developing its expected return on plan assets, the Company considers the long-term actual returns relative to the mix of investments that comprise its plan assets and also develops estimates of future investment returns by considering external sources. The Company recognizes an actuarial-based obligation at the onset of disability for certain benefits provided to individuals after employment, but before retirement, that includes medical, dental, vision, life and other benefits. Environmental Costs The Company is involved in certain environmental remediation and ongoing compliance activities. Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and based upon a reasonable estimate of the liability. The Company’s accruals reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Actual costs to be incurred at identified sites in future periods may vary from the estimates, given the inherent uncertainties in evaluating environmental exposures. The accrual for environmental matters is included in Accounts payable and accrued liabilities and Other liabilities in the Company’s consolidated balance sheets on an undiscounted basis due to uncertainty regarding the timing of future payments. Revenue Recognition The Company’s revenue is primarily generated from the sale of finished product to customers. Revenue is recognized at the point in time when performance obligations under the terms of customer contracts are satisfied, which is when ownership, risks and rewards transfer, and can be on the date of shipment or the date of receipt by the customer, depending upon the particular customer arrangement. Shipping and handling activities are accounted for as contract fulfillment costs and included within Cost of products sold. After the completion of the performance obligation, there is an unconditional right to consideration as outlined in the contract. A right is considered 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 has trade promotion programs, which primarily include shelf price reductions, in-store merchandising and consumer coupons. The costs of such activities, defined as variable consideration under ASC 606, “Revenue from Contracts with Customers,” are netted against sales and recorded when the related sales take place. Accruals for trade promotion programs are established based on the Company’s best estimate of the amounts necessary to settle existing and future obligations for products sold as of the balance sheet date. Amounts accrued for trade-promotions are based on various factors such as contractual terms and sales volumes, and also incorporate estimates that include customer participation rates, the rate at which customers will achieve program performance criteria, product availability and historical consumer redemption rates. The Company provides an allowance for doubtful accounts based on its historical experience and ongoing assessment of its customers’ credit risk and aging. Customer receivables are presented net of an allowance for doubtful accounts of $3 and $9 as of June 30, 2023 and 2022, respectively. Receivables, net, include non-customer receivables of $14 and $22 as of June 30, 2023 and 2022, respectively, and related allowance of $3 and $0 as of June 30, 2023 and 2022, respectively. Cost of Products Sold Cost of products sold represents the costs directly related to the manufacture and distribution of the Company’s products and primarily includes raw materials, packaging, contract manufacturing fees, shipping and handling, warehousing, package design, depreciation, amortization, direct and indirect labor and operating costs for the Company’s manufacturing and distribution facilities, including salary, benefit costs and incentive compensation, and royalties and other charges related to the Company’s Glad Venture Agreement (See Note 9). Costs associated with developing and designing new packaging, including design, artwork, films and labeling, are expensed as incurred and included within Cost of products sold. Selling and Administrative Expenses Selling and administrative expenses represent costs incurred by the Company in generating revenues and managing the business and include market research, commissions and certain administrative expenses. Administrative expenses include salary, benefits, incentive compensation, professional fees and services and other operating costs (such as software and licensing costs) associated with the Company’s non-manufacturing, non-research and development operations. Advertising and Research and Development Costs The Company expenses advertising and research and development costs in the period incurred. Income Taxes The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the anticipated future tax consequences attributable to differences between financial statement amounts and their respective tax basis. Management reviews the Company’s deferred tax assets to determine whether their value can be realized based upon available evidence. A valuation allowance is established when management believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the Company’s income tax provision in the period of change. In addition to valuation allowances, the Company provides for uncertain tax positions when such tax positions do not meet certain recognition thresholds or measurement standards. Amounts for uncertain tax positions are adjusted in quarters when new information becomes available or when positions are effectively settled. Per U.S. GAAP, foreign withholding taxes are provided on unremitted foreign earnings that are not indefinitely reinvested at the time the earnings are generated. The Company regularly reviews and assesses whether there are any changes to its indefinite reinvestment assertion and determined that none of the undistributed earnings of its foreign subsidiaries are indefinitely reinvested. As a result, the Company is providing foreign withholding taxes on the undistributed earnings of all foreign subsidiaries where applicable. Foreign Currency Transactions and Translation Local currencies are the functional currencies for substantially all of the Company’s foreign operations. When the transactional currency is different than the functional currency, transaction gains and losses are included as a component of Other (income) expense, net. In addition, certain assets and liabilities denominated in currencies other than a foreign subsidiary’s functional currency are reported on the subsidiary’s books in its functional currency, with the impact from exchange rate differences recorded in Other (income) expense, net. Assets and liabilities of foreign operations are translated into U.S. dollars using the exchange rates in effect at the balance sheet date, while income and expenses are translated at the respective average monthly exchange rates during the year. Gains and losses on foreign currency translations are reported as a component of Other comprehensive (loss) income. The income tax effect of currency translation adjustments is recorded as a component of deferred taxes with an offset to Other comprehensive (loss) income where appropriate. 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 consolidated statement of earnings. Derivative Instruments The Company’s use of derivative instruments, principally exchange-traded futures and options contracts, and over-the counter swaps and forward contracts, is limited to non-trading purposes and is designed to partially manage exposure to changes in commodity prices, foreign currencies and interest rates. The Company’s contracts are hedges for transactions with notional amounts and periods consistent with the related exposures and do not constitute investments independent of these exposures. The changes in the fair value (i.e., gains or losses) of a derivative instrument are recorded as either assets or liabilities in the consolidated balance sheets with an offset to Net earnings or Other comprehensive (loss) income depending on whether, for accounting purposes, it has been designated and qualifies as an accounting hedge and, if so, on the type of hedging relationship. The criteria used to determine if hedge accounting treatment is appropriate are: (a) formal designation and documentation of the hedging relationship, the risk management objective and hedging strategy at hedge inception; (b) eligibility of hedged items, transactions and corresponding hedging instrument; and (c) effectiveness of the hedging relationship both at inception of the hedge and on an ongoing basis in achieving the hedging objectives. For those derivative instruments designated and qualifying as hedging instruments, the Company must designate the hedging instrument either as a fair value hedge or as a cash flow hedge. The Company designates its commodity futures, options and swaps contracts for forecasted purchases of raw materials, foreign currency forward contracts for forecasted purchases of inventory and interest rate contracts for forecasted interest payments as cash flow hedges. During the fiscal years ended June 30, 2023, 2022 and 2021, the Company had no hedging instruments designated as fair value hedges. For derivative instruments designated and qualifying as cash flow hedges, gains or losses are reported as a component of Other comprehensive (loss) income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. From time to time, the Company may have contracts not designated as hedges for accounting purposes, for which it recognizes changes in the fair value in the consolidated statement of earnings in the current period. Cash flows from hedging activities are classified as operating activities in the consolidated statements of cash flows. Recently Issued Accounting Standards Recently Issued Accounting Standards Not Yet Adopted In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” These amendments require disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. These amendments are effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. As these amendments relate to disclosures only, there are no impacts expected to the Company’s consolidated results of operations, financial position and cash flows.
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BUSINESS ACQUIRED |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS ACQUIRED | BUSINESS ACQUIRED Saudi Joint Venture Acquisition On July 9, 2020, the Company increased its investment in each of the two entities comprising its joint venture in the Kingdom of Saudi Arabia (Saudi joint venture). The joint venture offers customers in the Gulf region a range of cleaning and disinfecting products. The Company had previously accounted for its 30 percent investment of $27 as of June 30, 2020, under the equity method of accounting. Subsequent to the closing of this transaction, the Company's total ownership interest in each of the entities increased to 51 percent. The Company has consolidated this joint venture into its consolidated financial statements from the date of acquisition and reflects operations within the International reportable segment. The equity and income attributable to the other joint venture owners is recorded and presented as noncontrolling interests. The total purchase consideration of $111 consisted of $100 cash paid, which was sourced from operations, and $11 from the net effective settlement of preexisting arrangements between the Company and the joint venture. The assets and liabilities of the joint venture were recorded at their respective estimated fair value as of the acquisition date using generally accepted accounting principles for business combinations. The excess of the purchase price over the fair value of the net identifiable assets acquired was allocated to goodwill in the International reportable segment in the amount of $208. The goodwill is primarily attributable to the synergies expected to arise after the acquisition and reflected the value of further growth anticipated in the Gulf region. None of the goodwill is deductible for tax purposes. As a result of this transaction, the carrying value of the Company’s previously held equity investment was remeasured to fair value, and resulted in an $85 nonrecurring, noncash gain recorded in Other (income) expense, net in the consolidated statement of earnings and adjusted in Other operating activities in the consolidated statement of cash flows for the first quarter of fiscal year 2021. The fair values of the noncontrolling interests and previously held equity interest were determined using the DCF method under the income approach. Under this approach, the Company estimated future cash flows and discounts these cash flows at a rate of return that reflected the entities’ relative risk. The purchase price allocation was finalized during the second quarter of fiscal year 2021. The following table summarizes the final purchase price allocation for the fair value of the joint venture’s assets acquired and liabilities assumed and the related deferred income taxes as of the acquisition date. The finite-lived intangibles acquired primarily represent the Company reacquiring previously licensed trademarks and customer relationships. The weighted-average estimated useful life of intangible assets subject to amortization was 9 years.
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RESTRUCTURING AND RELATED COSTS |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING AND RELATED COSTS | RESTRUCTURING AND RELATED COSTS Beginning in the first quarter of fiscal year 2023, the Company recognized costs related to a plan that involves streamlining its operating model to meet its objectives of driving growth and productivity. The streamlined operating model is expected to enhance the Company’s ability to respond more quickly to changing consumer behaviors and innovate faster. The Company anticipates the implementation of this new model will be completed in fiscal year 2024, with different phases occurring throughout the implementation period. The Company incurred $60 of costs in fiscal year 2023 and anticipates incurring approximately $30 to $40 in fiscal year 2024 related to this initiative, of which approximately half are expected to include employee-related costs to reduce certain staffing levels such as severance payments, with the remainder for consulting and other costs. Costs incurred are expected to be settled primarily in cash. The total restructuring and related implementation costs, net associated with the Company’s streamlined operating model plan as reflected in the Consolidated Statements of Earnings and Comprehensive Income for the fiscal year ended June 30 were:
Employee-related costs primarily include severance and other termination benefits calculated based on salary levels, prior service and statutory requirements. Other costs primarily include consulting fees incurred for the organizational design and implementation of the streamlined operating model, related processes and other professional fees incurred. The Company may, from time to time, decide to pursue additional restructuring-related initiatives that involve costs in future periods. The following table reconciles the accrual for the streamlined operating model restructuring and related implementation costs discussed above, which are recorded within Accounts payable and accrued liabilities in the Consolidated Balance Sheets as follows for the fiscal years ended June 30:
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INVENTORIES, NET |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES, NET | INVENTORIES, NET Inventories, net consisted of the following as of June 30:
(1)Non-current inventories, net is recorded in Other assets. The LIFO method was used to value approximately 36% of inventories as of June 30, 2023 and 2022, respectively. The carrying values for all other inventories are determined on the FIFO method. The effect on earnings of the liquidation of LIFO layers was insignificant for each of the fiscal years ended June 30, 2023, 2022 and 2021.
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PROPERTY, PLANT AND EQUIPMENT, NET |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET The components of property, plant and equipment, net, consisted of the following as of June 30:
Depreciation and amortization expense related to property, plant and equipment, net, was $206, $193 and $179 in fiscal years 2023, 2022 and 2021, respectively, of which $10, $8 and $6 were related to amortization of capitalized software, respectively. Noncash capital expenditures were $9, $6 and $13 for fiscal years, 2023, 2022 and 2021, respectively. There were no significant asset retirement obligations recorded and included in Buildings above for both fiscal years 2023 and 2022.
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GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS | GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill by reportable segment and Corporate and Other for the fiscal years ended June 30, 2023 and 2022 were as follows:
(1) $306 of goodwill related to the VMS reporting unit previously included within Health and Wellness was recast to Corporate and Other as a result of segment changes effective in the fourth quarter of fiscal year 2023. See Note 19 for more information. The changes in the carrying amount of trademarks and other intangible assets for the fiscal years ended June 30, 2023 and 2022 were as follows:
(1) As of June 30, 2023 reflects changes to the useful lives of certain VMS and International indefinite-lived trademarks to finite-lived effective April 1, 2023. Amortization expense relating to the Company’s intangible assets was $30, $31 and $32 for the years ended June 30, 2023, 2022 and 2021, respectively. Estimated amortization expense for these intangible assets is $29, $28, $28, $29 and $28 for fiscal years 2024, 2025, 2026, 2027 and 2028, respectively. Fiscal Year 2023 Impairments During the third quarter of fiscal year 2023, management made a decision to narrow the focus on core brands and streamline investment levels in the VMS business. As a result, revisions were made to the internal financial projections and operational plans of the VMS business reflecting the Company’s current estimates regarding the future financial performance of these operations and macroeconomic factors. The revised estimated future cash flows reflect lower sales growth expectations and lower investment levels. These revisions were considered a triggering event requiring interim impairment assessments to be performed as part of the preparation of the quarterly financial statements on the global indefinite-lived trademarks, other long-term assets and the VMS reporting unit. Based on the outcome of these assessments, the following pre-tax, noncash impairment charges were recorded during fiscal year 2023:
In connection with recognizing these impairment charges, the Company recognized tax benefits related to the impairments of $83 due to the partial tax deductibility of these charges. To determine the estimated fair values of the global indefinite-lived trademarks related to the VMS business, the Company used the DCF method under the relief from royalty income approach. This approach requires significant judgments in determining the royalty rates and the assets’ estimated cash flows as well as the appropriate discount rates applied to those cash flows to determine fair value. As a result of the interim impairment test, the Company concluded that the carrying value of the global indefinite-lived trademarks exceeded their estimated fair value, and recorded impairment charges of $139. In addition, the useful lives of the impaired trademarks, with a remaining net carrying value of $28 as of March 31, 2023, were changed from indefinite to finite beginning on April 1, 2023, which reflects the remaining expected useful lives of the trademarks based on the most recent financial and operational plans. The weighted-average estimated useful life of these trademarks is 20 years. After adjusting the carrying values of the global indefinite-lived trademarks and concluding that the carrying amounts of the other long-lived assets were recoverable, the Company completed a quantitative impairment test for goodwill and recorded a goodwill impairment charge of $306 in the VMS reporting unit. To determine the fair value of the VMS reporting unit, the Company used a DCF method under the income approach. In accordance with this approach, the Company estimated the future cash flows of the VMS reporting unit and discounted these cash flows at a rate of return that reflects its relative risk. The other key estimates and factors used in the DCF method include, but are not limited to, net sales and expense growth rates and a terminal growth rate. The decrease in projected cash flows due to the revisions adversely impacted key assumptions used in determining the fair value of the VMS reporting unit and assets contained therein, primarily projected net sales. There is no remaining goodwill associated with the impaired reporting unit. Fiscal Year 2021 Impairments During fiscal year 2021, as a result of lower than expected actual and projected net sales growth and operating performance for the VMS business, a strategic review was initiated by management that resulted in updated financial and operational plans. These events were considered a triggering event requiring interim impairment assessments to be performed on the VMS reporting unit, indefinite-lived trademarks and other assets. Based on the outcome of these assessments, the following pre-tax impairment charges were recorded during fiscal year 2021:
In connection with recognizing these impairment charges, the Company recognized tax benefits related to the impairments of $62 due to the partial tax deductibility of these charges. The fiscal year 2021 impairment charges were a result of a higher level of competitive activity than originally assumed, accelerated declines in certain channels where the business was over-developed and higher than anticipated investments to grow the business, which adversely affected the assumptions used to determine the fair value of the respective assets held by the VMS reporting unit for growth and the estimates of expenses necessary to achieve that growth. These impairment charges were based on the Company’s estimates regarding the future financial performance of the VMS business and macroeconomic factors. To determine the estimated fair values of the VMS related indefinite-lived trademarks, the Company used the relief from royalty income approach. This approach required significant judgments in determining the royalty rates and the assets’ estimated cash flows as well as the appropriate discount rates applied to those cash flows to determine fair value. To determine the fair value of the VMS reporting unit, the Company used the DCF method under the income approach. Under this approach, the Company estimated the future cash flows of the VMS reporting unit and discounted these cash flows at a rate of return that reflected its relative risk. The other key estimates and factors used in the DCF method included, but were not limited to, net sales and expense growth rates, and a terminal growth rate. Additionally, during fiscal year 2021, an impairment charge of $14 was recorded within Cost of products sold related to other intangible assets with finite lives that were no longer expected to be recoverable due to a pending exit from a Professional Products SBU supplier relationship. The remaining carrying value of these assets was $0 following the impairment charge. No other significant impairments were identified as a result of the Company’s impairment reviews during fiscal years 2023, 2022 and 2021.
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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES |
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Accounts Payable and Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIESAccounts payable and accrued liabilities consisted of the following as of June 30:
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT Short-term borrowings Notes and loans payable are borrowings that mature in less than one year, primarily consisting of U.S. commercial paper issued by the Company and borrowings under the Company's revolving credit agreements. Notes and loans payable were $50 and $237 as of June 30, 2023 and 2022, respectively. The weighted average interest rates incurred on average outstanding notes and loans payable during the fiscal years ended June 30, 2023, 2022, and 2021, including fees associated with the Company’s revolving credit agreements, were 3.48%, 0.54% and 0% respectively. The Company had no material outstanding notes and loans payable during the fiscal year ended June 30, 2021. Long-term borrowings Long-term debt, carried at face value net of unamortized discounts, premiums and debt issuance costs, included the following as of June 30:
In May 2022, the Company issued $1,100 in senior notes, which included $500 of senior notes with an annual fixed interest rate of 4.40%, payable semi-annually in May and November, final maturity in May 2029 that carry an effective rate of 3.89% (May 2029 senior notes), which includes the impact from the settlement of interest rate contracts in May 2022, and $600 of senior notes with an annual fixed rate of 4.60%, payable semi-annually in May and November, final maturity in May 2032 that carry an effective rate of 3.25% (May 2032 senior notes), which includes the impact from the settlement of interest rate contracts in May 2022. The notes rank equally with all of the Company's existing senior indebtedness. Proceeds from the senior notes were used to redeem prior to maturity $600 of senior notes with an annual fixed interest rate of 3.05% due in September 2022 and $500 of senior notes with an annual fixed interest rate of 3.50% due in December 2024, which were redeemed in June 2022 prior to their maturities, and for general corporate purposes. In connection with the redemption prior to maturity of the $500 of senior notes due in December 2024, the Company recorded a loss on the early extinguishment of debt of $13, which is included in Interest expense in the Consolidated Statements of Earnings, representing the difference paid in cash between the redemption price and the carrying amount of the debt extinguished of $5 and the accelerated amortization of losses on settlement of interest rate contracts and issuance costs associated with the debt extinguished of $8. In November 2021, $300 of the Company’s senior notes with annual fixed interest rate of 3.80% became due and were repaid using commercial paper borrowings. The weighted average interest rates incurred on average outstanding long-term debt during the fiscal years ended June 30, 2023, 2022 and 2021, were 3.25%, 3.25% and 3.49%, respectively. The weighted average effective interest rates on long-term debt balances as of both June 30, 2023 and 2022 were 3.25% and 3.37%, respectively. Long-term debt maturities as of June 30, 2023, were $0 in fiscal years 2024 through 2027, $900 in fiscal year 2028 and $1,600 thereafter. Credit arrangements As of June 30, 2023, the Company maintained a $1,200 revolving credit agreement (the Credit Agreement) that matures in March 2027. There were no borrowings under the Credit Agreement as of June 30, 2023 and June 30, 2022, respectively, and the Company believes that borrowings under the Credit Agreement will continue to be available for general corporate purposes. The Credit Agreement includes certain restrictive covenants and limitations consistent with the previous agreement, with which the Company was in compliance as of June 30, 2023 and June 30, 2022. The Company’s borrowing capacity under the revolving credit agreements and other financing arrangements as of June 30 was as follows:
Of the $35 of foreign and other credit lines as of June 30, 2023, $5 was outstanding and the remainder of $30 was available for borrowing. Of the $34 of foreign and other credit lines as of June 30, 2022, $4 was outstanding and the remainder of $30 was available for borrowing.
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OTHER LIABILITIES |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES | OTHER LIABILITIES Other liabilities consisted of the following as of June 30:
Venture Agreement The Company has an agreement with The Procter & Gamble Company (P&G) for the Company’s Glad bags and wraps business. In connection with this agreement, P&G provides research and development (R&D) support to the Glad business. As of June 30, 2023 and 2022, P&G had a 20% interest in the venture. The Company pays a royalty to P&G for its interest in the profits, losses and cash flows, as contractually defined, of the Glad business, which is included in Cost of products sold. In December 2017, the Company and P&G extended the term of the agreement and the related R&D support provided by P&G. The term will expire in January 2026, unless the parties agree, on or prior to January 31, 2025, to further extend the term of the agreement for another seven years or agree to take some other relevant action. The agreement can be terminated under certain circumstances, including at P&G’s option upon a change in control of the Company or, at either party’s option, upon the sale of the Glad business by the Company. Upon termination of the agreement, the Company is required to purchase P&G’s 20% interest for cash at fair value as established by predetermined valuation procedures. As of June 30, 2023, the estimated fair value of P&G’s interest in the venture was $527, of which $495 has been recognized and is reflected in Other liabilities as noted in the table above. The estimated fair value of P&G's interest in the venture was $635 as of June 30, 2022. The difference between the estimated fair value and the amount recognized, and any future changes in the fair value of P&G’s interest, is charged to Cost of products sold in accordance with the effective interest method over the remaining life of the agreement. Following termination, the Glad business will retain the exclusive core intellectual property licenses contributed by P&G on a royalty-free basis for the licensed products marketed.
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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 futures, options and swap contracts to limit the impact of price volatility on a portion of its forecasted raw material requirements. These commodity derivatives may be exchange traded or over-the-counter contracts and generally have original contractual maturities of less than 2 years. Commodity purchase and option 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 June 30, 2023, the notional amount of commodity derivatives was $41, of which $29 related to soybean oil futures used for the Food products business and $12 related to jet fuel swaps used for the Grilling business. As of June 30, 2022, the notional amount of commodity derivatives was $27, of which $18 related to soybean oil futures and $9 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 original contractual maturities of less 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 $51 and $31, respectively, as of June 30, 2023 and 2022. Interest Rate Risk Management The Company may enter into over-the-counter interest rate contracts to fix a portion of the benchmark interest rate prior to the anticipated issuance of fixed rate debt. These interest rate contracts generally have original contractual maturities of less than 3 years. The interest rate contracts are measured at fair value using information quoted by bond dealers. The Company held no interest rate contracts as of both June 30, 2023 and 2022. During fiscal year 2022, the Company entered into an additional $650 of interest rate contracts. All contracts represented interest rate swap lock agreements to manage the exposure to interest rate volatility associated with future interest payments on forecasted debt issuance, and were terminated in May 2022 upon issuance of $1,100 in senior notes (See Note 8). These contracts resulted in a $114 gain recorded in Other comprehensive (loss) income, comprised of $25 attributable to the May 2029 senior notes and $89 attributable to the May 2032 senior notes, which is being amortized into Interest expense in the consolidated statements of earnings over the 7-year and 10-year term of the notes. Commodity, Foreign Exchange and Interest Rate Derivatives The Company designates its commodity forward, futures and options contracts for forecasted purchases of raw materials, foreign currency forward contracts for forecasted purchases of inventory, and interest rate contracts for forecasted interest payments as cash flow hedges. The effects of derivative instruments designated as hedging instruments on Other comprehensive (loss) income and Net earnings were as follows during the fiscal years ended June 30:
The estimated amount of the existing net gain (loss) in Accumulated other comprehensive net (loss) income as of June 30, 2023 that is expected to be reclassified into Net earnings within the next twelve months is $11. Counterparty Risk Management and Derivative Contract Requirements The Company utilizes a variety of financial institutions as counterparties for over-the-counter derivative instruments. The Company enters into agreements governing the use of over-the-counter derivative instruments and sets internal limits on the aggregate over-the-counter derivative instrument positions held with each counterparty. Certain terms of these agreements require the Company or the counterparty to post collateral when the fair value of the derivative instruments exceeds contractually defined counterparty liability position limits. Of the over-the-counter derivative instruments in liability positions, $1 and $0 contained such terms as of June 30, 2023 and 2022, respectively. As of both June 30, 2023 and 2022, 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 Company's credit ratings, as assigned by Standard & Poor’s and Moody’s to the Company and its counterparties, to remain at a level equal to or better than the minimum of an investment grade credit rating. If the Company’s credit ratings were to fall below investment grade, the counterparties to the derivative instruments could request full collateralization on derivative instruments in net liability positions. As of both June 30, 2023 and 2022, the Company and each of its counterparties had been assigned investment grade ratings by both Standard & Poor’s and Moody’s. Certain of the Company’s exchange-traded futures and options contracts used for commodity price risk management include requirements for the Company to post collateral in the form of a cash margin account held by the Company’s broker for trades conducted on that exchange. As of June 30, 2023 and 2022, the Company maintained required cash margin balances related to exchange-traded futures and options contracts of $0 and $1, respectively, which are classified as Prepaid expenses and other current assets on the consolidated balance sheets. Trust Assets The Company holds interests in mutual funds and cash equivalents as part of trust assets related to its nonqualified deferred compensation plans. The participants in the nonqualified deferred compensation plans, who are the Company’s current and former employees, may select among certain mutual funds in which their compensation deferrals are invested in accordance with the terms of the 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 consolidated balance sheets. The gains and losses on the trust assets are recorded in Other (income) expense, net in the consolidated statements of earnings. The interests in mutual funds are measured at fair value using quoted market prices. The Company has designated these marketable securities as trading investments. As of June 30, 2023, the balance of the trust assets related to the Company’s nonqualified deferred compensation plans increased by $10 as compared to June 30, 2022. Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of June 30, 2023 and 2022, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the period included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. All of the Company's derivative instruments qualify for hedge accounting. The following table provides information about the balance sheet classification and the fair values of the Company's derivative instruments:
The following table provides information about the balance sheet classification and the fair values of the Company's other assets and liabilities for which disclosure of fair value is required:
(1)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. (2)Notes and loans payable are composed of outstanding U.S. commercial paper balances and/or amounts drawn on the Company’s credit agreements, all of which are recorded at cost, which approximates fair value. (3)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. Furthermore, impairment charges of $445 were record during fiscal year 2023, of which $306 and $139 related to goodwill and certain indefinite-lived trademarks, respectively. Additionally, impairment charges of $343 were recorded during the fiscal year 2021, of which $228, $93, and $22 related to goodwill, certain indefinite-lived trademarks and other assets, respectively. These adjustments were included as noncash charges in the consolidated statements of earnings. The nonrecurring fair values utilized included unobservable Level 3 inputs based on management’s best estimates and assumptions. See Note 6 for additional information.
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OTHER CONTINGENCIES, GUARANTEES AND COMMITMENTS |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER CONTINGENCIES, GUARANTEES AND COMMITMENTS | OTHER CONTINGENCIES, GUARANTEES AND COMMITMENTS Contingencies The Company is involved in certain environmental matters, including response actions at various locations. The Company had recorded liabilities totaling $28 as of both June 30, 2023 and 2022, for its share of related to these matters. One matter, which accounted for $12 and $14 of the recorded liability as of June 30, 2023 and 2022, respectively, relates to environmental costs associated with one of the Company’s former operations at a site located in Alameda County, California. In November 2016, at the request of regulators and with the assistance of environmental consultants, the Company submitted a Feasibility Study that evaluated various options for managing groundwater at the site and included estimates of the related costs. Following further discussions with the regulators in 2017, the Company recorded an undiscounted liability for costs estimated to be incurred over a 30-year period, based on one of the options in the Feasibility Study related to groundwater. In September 2021, as a result of an additional study and further discussions with regulators, the Company submitted a Soil Vapor Intrusion Report to the regulators. In January 2023, the regulators issued a new order directing the Company and the current property owner to conduct a Remedial Investigation and then prepare a Feasibility Study to evaluate and remediate impacts to soil, soil vapor and indoor air. While the Company believes its latest estimates of remediation costs (including any related to soil, soil vapor and indoor air impacts) are reasonable, the ultimate remediation requirements are not yet finalized and the regulators could require the Company to implement remediation actions for a longer period or take additional actions, which could include estimated undiscounted costs in the aggregate of up to approximately $28 over an estimated 30-year period, or require the Company to take different actions and incur additional costs. 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 $10 and $9 of the recorded liability as of June 30, 2023 and 2022, respectively. This amount reflects the Company’s agreement to be liable for 24.3% of the aggregate remediation and associated costs for this matter pursuant to a cost-sharing agreement with a third party. If the third party is unable to pay its share of the response and remediation obligations, the Company may be responsible for such obligations. 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 (including costs connected to the transition and unwinding of certain supply and manufacturing relationships), product liability, patents and trademarks, advertising, labor and employment, environmental, health and safety and other matters. With respect to these proceedings, claims and other loss contingencies, while considerable uncertainty exists, in the opinion of management at this time, the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, either individually or in the aggregate, on the Company’s consolidated financial statements taken as a whole. Guarantees In conjunction with divestitures and other transactions, the Company may provide typical indemnifications (e.g., indemnifications for representations and warranties and retention of previously existing environmental, tax and employee liabilities) that have terms that vary in duration and in the potential amount of the total obligation and, in many circumstances, are not explicitly defined. The Company has not made, nor does it believe that it is probable that it will make, any material payments relating to its indemnifications, and believes that any reasonably possible payments would not have a material adverse effect, either individually or in the aggregate, on the Company’s consolidated financial statements taken as a whole. The Company had not recorded any material liabilities on the aforementioned guarantees as of both June 30, 2023 and 2022. The Company was a party to letters of credit of $14 as of June 30, 2023 and 2022, primarily related to one of its insurance carriers, of which $0 had been drawn upon. Commitments The Company is a party to certain purchase obligations, which are defined as purchase agreements that are enforceable and legally binding and that contain specified or determinable significant terms, including quantity, price and the approximate timing of the transaction. For purchase obligations subject to variable price and/or quantity provisions, an estimate of the price and/or quantity must be made. Examples of the Company’s purchase obligations include contracts to purchase raw materials, commitments to contract manufacturers, commitments for information technology and related services, advertising contracts, capital expenditure agreements, software acquisition and license commitments and service contracts. The Company enters into purchase obligations based on expectations of future business needs. Many of these purchase obligations are flexible to allow for changes in the Company’s business and related requirements. As of June 30, 2023, the Company’s purchase obligations by purchase date were approximately as follows:
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company leases various property, plant and equipment, including office, warehousing, manufacturing and research and development facilities and equipment. These leases have remaining lease terms of up to 34 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to the Company’s leases as of June 30 was as follows:
Components of lease cost were as follows for the fiscal years ended June 30:
Supplemental cash flow information and noncash activity related to the Company’s leases were as follows during fiscal years ended June 30:
Weighted-average remaining lease term and discount rate for the Company’s leases were as follows as of fiscal year ended June 30:
Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2023 were as follows:
Operating and finance lease payments presented in the table above exclude $2 and $0, respectively, of minimum lease payments signed but not yet commenced as of June 30, 2023. On May 25, 2022, the Company completed an asset sale-leaseback transaction on a plant in Ontario, Canada. The Company received proceeds of $16, net of selling costs, which had a carrying value of $2, and resulted in a $14 gain on the transaction which was recognized in Other (income) expense, net. The leaseback is accounted for as an operating lease. The term of the lease at inception date is 10 years, with the option to terminate the lease at 7 years.
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LEASES | LEASES The Company leases various property, plant and equipment, including office, warehousing, manufacturing and research and development facilities and equipment. These leases have remaining lease terms of up to 34 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to the Company’s leases as of June 30 was as follows:
Components of lease cost were as follows for the fiscal years ended June 30:
Supplemental cash flow information and noncash activity related to the Company’s leases were as follows during fiscal years ended June 30:
Weighted-average remaining lease term and discount rate for the Company’s leases were as follows as of fiscal year ended June 30:
Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2023 were as follows:
Operating and finance lease payments presented in the table above exclude $2 and $0, respectively, of minimum lease payments signed but not yet commenced as of June 30, 2023. On May 25, 2022, the Company completed an asset sale-leaseback transaction on a plant in Ontario, Canada. The Company received proceeds of $16, net of selling costs, which had a carrying value of $2, and resulted in a $14 gain on the transaction which was recognized in Other (income) expense, net. The leaseback is accounted for as an operating lease. The term of the lease at inception date is 10 years, with the option to terminate the lease at 7 years.
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STOCKHOLDERS' EQUITY |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY On November 18, 2020 the Company retired 28 million shares of its treasury stock. These shares are now authorized but unissued. There was no effect on the Company’s overall equity position as a result of the retirement. Dividends per share paid to Clorox stockholders during the fiscal years ended June 30 were as follows:
On July 27, 2023, a cash dividend was declared in the amount of $1.20 per share payable on August 25, 2023 to common stockholders of record as of the close of business on August 09, 2023. Accumulated Other Comprehensive Net (Loss) Income Changes in Accumulated other comprehensive net (loss) income attributable to Clorox by component were as follows for the fiscal years ended June 30:
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. There were $0, $0, and $11 associated with these loans reclassified from Accumulated other comprehensive net (loss) income for the fiscal years ended June 30, 2023, 2022, and 2021, respectively.
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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 for the fiscal years ended June 30:
Basic net earnings per share and Diluted net earnings per share are calculated on Net earnings attributable to Clorox.
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STOCK-BASED COMPENSATION PLANS |
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Share-Based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS In November 2021, the Company’s stockholders voted to approve the amended and restated 2005 Stock Incentive Plan (the Plan). The Plan permits the Company to grant various nonqualified stock-based compensation awards, including stock options, restricted stock, performance shares, deferred stock units, stock appreciation rights and other stock-based awards. The Plan as amended and restated provides that the maximum number of shares which may be issued under the Plan will be 5 million common shares that may be issued for stock-based compensation purposes. As of June 30, 2023, the Company was authorized to grant up to approximately 5 million common shares, plus additional shares equal to shares that are potentially deliverable under an award that expires or are canceled, forfeited or settled without the delivery of shares, under the Plan. As of June 30, 2023, approximately 4 million common shares remained available for grant. Compensation cost and the related income tax benefit recognized for stock-based compensation plans were classified as indicated below for the fiscal years ended June 30:
Cash received during fiscal years 2023, 2022 and 2021 from stock options exercised under all stock-based payment arrangements was $52, $35 and $133, respectively. The Company issues shares for stock-based compensation plans from treasury stock. The Company may repurchase stock under its Evergreen Program to offset the estimated impact of dilution related to stock-based awards. Details regarding the valuation and accounting for stock options, restricted stock awards, performance shares and deferred stock units for non-employee directors follow. Stock Options The fair value of each stock option award granted during fiscal years 2023, 2022 and 2021 was estimated on the date of grant using the Black-Scholes valuation model and assumptions noted in the following table:
The expected life of the stock options is based on historical exercise patterns. The expected volatility is based on implied volatility from publicly traded options on the Company’s stock at the date of grant, historical implied volatility of the Company’s publicly traded options and other factors. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option. The dividend yield is based on the projected annual dividend payment per share, divided by the stock price at the date of grant. Details of the Company’s stock option activities are summarized below:
The weighted-average fair value per share of each option granted during fiscal years 2023, 2022 and 2021, estimated at the grant date using the Black-Scholes option pricing model, was $26.95, $22.26 and $30.90, respectively. The total intrinsic value of options exercised in fiscal years 2023, 2022 and 2021 was $27, $18 and $109, respectively. Stock option awards outstanding as of June 30, 2023, have been granted at prices that are equal to the market value of the stock on the date of grant. Stock option grants generally vest over 4 years and expire no later than 10 years after the grant date. The Company recognizes compensation expense on a straight-line basis over the vesting period. As of June 30, 2023, there was $11 of total unrecognized compensation cost related to non-vested options, which is expected to be recognized over a remaining weighted-average vesting period of 2 years, subject to forfeiture changes. Restricted Stock Awards The fair value of restricted stock awards is estimated on the date of grant based on the market price of the stock and is amortized to compensation expense on a straight-line basis over the related vesting periods, which are generally 3 to 4 years. The total number of restricted stock awards expected to vest is adjusted by actual and estimated forfeitures. Restricted stock awards receive dividend distributions earned during the vesting period upon vesting. As of June 30, 2023, there was $38 of total unrecognized compensation cost related to non-vested restricted stock awards, which is expected to be recognized over a remaining weighted-average vesting period of 2 years. The total fair value of the shares that vested in each of the fiscal years 2023, 2022 and 2021 was $22, $20 and $15, respectively. The weighted-average grant-date fair value of awards granted was $143.20, $157.50 and $210.78 per share for fiscal years 2023, 2022 and 2021, respectively. A summary of the status of the Company’s restricted stock awards is presented below:
Performance Shares The fair value of performance shares is estimated on the date of grant based on the market price of the stock and is amortized to compensation expense on a straight line basis over the related vesting periods, which are generally 3 years. As of June 30, 2023, there was $32 in unrecognized compensation cost related to non-vested performance shares that is expected to be recognized over a remaining weighted-average performance period of 2 years. The weighted-average grant-date fair value of awards granted was $141.90, $162.46 and $212.00 per share for fiscal years 2023, 2022 and 2021, respectively. A summary of the status of the Company’s performance share awards is presented below:
The non-vested performance shares outstanding as of June 30, 2023 and 2022 were 306,000 and 255,000, respectively, and the weighted average grant date fair value was $162.77 and $173.38 per share, respectively. During fiscal year 2023, 77,000 shares vested. The total fair value of shares vested was $12, $11 and $26 during fiscal years 2023, 2022 and 2021, respectively. Upon vesting, the recipients of the grants receive the distribution as shares or, if previously elected by eligible recipients, as deferred stock. Deferred shares continue to earn dividends, which are also deferred. Deferred Stock Units for Nonemployee Directors Nonemployee directors receive annual grants of deferred stock units under the Company’s director compensation program and can elect to receive all or a portion of their annual retainers and fees in the form of deferred stock units. The deferred stock units receive dividend distributions, which are reinvested as deferred stock units, and are recognized at their fair value on the date of grant. Each deferred stock unit represents the right to receive one share of the Company’s common stock following the completion of a director’s service. During fiscal year 2023, the Company granted 18,000 deferred stock units, reinvested dividends of 4,000 units and distributed 39,000 shares, which had a weighted-average fair value on the grant date of $142.10, $151.35 and $95.38 per share, respectively. As of June 30, 2023, 128,000 units were outstanding, which had a weighted-average fair value on the grant date of $130.49 per share.
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OTHER (INCOME) EXPENSE, NET | OTHER (INCOME) EXPENSE, NET The major components of Other (income) expense, net, for the fiscal years ended June 30 were:
(1)Restructuring costs related to the Company's streamlined operating model plan (see Note 3). (2)Nonrecurring, noncash gain from the remeasurement of the Company’s previously held investment in its Saudi joint venture (see Note 2).
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES The provision for income taxes, by tax jurisdiction, consisted of the following for the fiscal years ended June 30:
The components of Earnings before income taxes, by tax jurisdiction, consisted of the following for the fiscal years ended June 30:
A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate on operations follows for the fiscal years ended June 30:
The Inflation Reduction Act (the “Act”) was signed into law on August 16, 2022. The Act introduces a new 15% corporate minimum tax for certain large corporations that becomes effective at the beginning of the Company’s fiscal 2024 and it imposes a 1% excise tax on the value of share repurchases, net of new share issuances, after December 31, 2022. These provisions, as well as the other corporate tax changes included in the Act, are not expected to have a material impact on the Company’s financial statements. Per U.S. GAAP, foreign withholding taxes are provided on unremitted foreign earnings that are not indefinitely reinvested at the time the earnings are generated. The Company regularly reviews and assesses whether there are any changes to its indefinite reinvestment assertion. None of the undistributed earnings of its foreign subsidiaries were indefinitely reinvested. As a result, the Company is providing foreign withholding taxes on the undistributed earnings of all foreign subsidiaries where applicable. These withholding taxes had no significant impact on the Company’s consolidated results. The components of net deferred tax assets (liabilities) as of June 30 are shown below:
(1)Net deferred tax assets are recorded in Other assets. The Company reviews its deferred tax assets for recoverability on a quarterly basis. A valuation allowance is established when the Company believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Valuation allowances have been provided to reduce deferred tax assets to amounts considered recoverable. Details of the valuation allowance were as follows as of June 30:
As of June 30, 2023, the Company had foreign tax credit carryforwards of $18 for U.S. income tax purposes with expiration dates between fiscal years 2026 and 2033. Tax credit carryforwards in U.S. jurisdictions of $5 have expiration dates between fiscal year 2024 and 2033. Tax credit carryforwards in U.S. jurisdictions of $2 can be carried forward indefinitely. Tax credit carryforwards in foreign jurisdictions of $29 can be carried forward indefinitely. Tax benefits from net operating loss carryforwards in U.S. jurisdictions of $4 have expiration dates between fiscal years 2030 and 2042. Tax benefits from net operating loss carryforwards in U.S. jurisdictions of $6 can be carried forward indefinitely. Tax benefits from foreign net operating loss carryforwards of $21 have expiration dates between fiscal years 2024 and 2040. Tax benefits from foreign net operating loss carryforwards of $9 can be carried forward indefinitely. The Company files income tax returns in the U.S. federal and various state, local and foreign jurisdictions. The federal statute of limitations has expired for all tax years through June 30, 2015. Various income tax returns in state and foreign jurisdictions are currently in the process of examination. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. As of June 30, 2023 and 2022, the total balance of accrued interest and penalties related to uncertain tax positions was $2 and $2, respectively. Interest and penalties related to uncertain tax positions included in income tax expense resulted in a net benefit of $0 in fiscal years 2023, 2022 and 2021. The following is a reconciliation of the beginning and ending amounts of the Company’s gross unrecognized tax benefits:
Included in the balance of unrecognized tax benefits as of June 30, 2023, 2022 and 2021, were potential benefits of $14, $14 and $17, respectively, which if recognized, would affect the effective tax rate. Unrecognized tax benefits are not expected to significantly increase or decrease within the next 12 months.
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EMPLOYEE BENEFIT PLANS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Retirement Income Plans The Company has various retirement income plans for eligible domestic and international employees. As of June 30, 2023 and 2022, the domestic retirement income plans were frozen and the benefits of the domestic retirement income plans were generally based on either employee years of service and compensation or a stated dollar amount per year of service. The Company contributed $14, $15 and $14 to its domestic retirement income plans during fiscal years 2023, 2022 and 2021, respectively. The Company’s funding policy is to contribute amounts sufficient to meet benefit payments and minimum funding requirements as set forth in employee benefit tax laws plus additional amounts as the Company may determine to be appropriate. The Company has a domestic qualified pension plan (the Plan). The Plan is frozen for all participants. The Plan generally was frozen effective June 30, 2011 for all employees, except for certain collectively bargained employees, whose Plan freeze was effective January 1, 2019. As a result of the Plan freeze, no employees are eligible to commence participation in the Plan or accrue any additional benefits under the Plan. On May 17, 2022, the Company’s Board of Directors approved a resolution to terminate the Plan. The amendment will allow the settlement of the pension obligation with either a lump sum payout or a purchased annuity. It is expected to take 18 to 24 months to complete the termination from the date of the approved resolution to terminate the Plan. As of June 30, 2023, the Company recorded net unrealized losses of $136, net of tax, ($179 before taxes) in Accumulated other comprehensive net (loss) income on its consolidated balance sheet related to the Plan. These net unrealized losses will be recognized in the Company’s consolidated statement of income as payments are made to settle lump sum elections and to purchase group annuity contracts. Final settlement is dependent on market conditions, which could affect discount rates and returns on plan assets as well as final elections received from plan participants. Currently, there is not enough information available to determine the ultimate charge of the termination. Retirement Health Care Plans The Company provides certain health care benefits for employees who meet age, participation and length of service requirements at retirement. The plans pay stated percentages of covered expenses after annual deductibles have been met or stated reimbursements up to a specified dollar subsidy amount. Benefits paid take into consideration payments by Medicare for the domestic plan. The plans are funded as claims are paid, and the Company has the right to modify or terminate certain plans. Benefit Obligation and Funded Status Summarized information for the Company’s retirement income and retirement health care plans as of and for the fiscal years ended June 30 is as follows:
For the retirement income plans, the benefit obligation is the projected benefit obligation (PBO). For the retirement health care plan, the benefit obligation is the accumulated benefit obligation (ABO). The ABO for all retirement income plans was $474, $512 and $618 as of June 30, 2023, 2022 and 2021, respectively. Retirement income plans with ABO or PBO in excess of plan assets as of June 30 were as follows:
Net Periodic Benefit Cost The net cost of the retirement income and health care plans for the fiscal years ended June 30 included the following components:
Service cost component of the net periodic benefit cost is reflected in employee benefit costs, and all other components are reflected in Other (income) expense, net. Items not yet recognized as a component of postretirement expense as of June 30, 2023 consisted of:
Net actuarial loss (gain) recorded in Accumulated other comprehensive net (loss) income for the fiscal year ended June 30, 2023 included the following:
The Company uses the straight-line amortization method for unrecognized prior service costs and benefits. Assumptions Weighted-average assumptions used to estimate the actuarial present value of benefit obligations were as follows as of June 30:
Weighted-average assumptions used to estimate the retirement income and retirement health care costs were as follows as of June 30:
The expected long-term rate of return assumption is based on prospective returns according to the fund’s current target asset allocation. The actuarial benefit obligation gain incurred during fiscal year 2023 was primarily driven by increases in the discount rates for the retirement plans, partially offset by investment gains lower than expected return on assets. The actuarial benefit obligation gain during fiscal year 2022 was primarily driven by increases in the discount rates for the retirement plans, partially offset by the domestic qualified plan reflecting plan termination lump sum window and annuity buyout assumptions. Expected Benefit Payments Expected benefit payments for the Company’s retirement income and retirement health care plans as of June 30, 2023, were as follows:
Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Plan Assets The target allocations and weighted average asset allocations by asset category of the investment portfolio for the Company’s domestic retirement income plans as of June 30 were:
The target asset allocation is determined based on the optimal balance between risk and return and, at times, may be adjusted to achieve the plan’s overall investment objective to generate sufficient resources to pay current and projected plan obligations over the life of the domestic retirement income plan. The following table sets forth the retirement income plans’ assets carried at fair value as of June 30:
Common collective trust funds are not publicly traded and were valued at a net asset value unit price determined by the portfolio’s sponsor based on the fair value of underlying assets held by the common collective trust fund on June 30, 2023 and 2022. The common collective trusts are invested in various trusts that attempt to achieve their investment objectives by investing primarily in other collective investment funds that have characteristics consistent with each trust’s overall investment objective and strategy. Defined Contribution Plans The Company has various defined contribution plans for eligible domestic and international employees. The aggregate cost of the domestic defined contribution plans was $64, $58 and $65 in fiscal years 2023, 2022 and 2021, respectively. The aggregate cost of the international defined contribution plans was $6, $6 and $4 for the fiscal years ended June 30, 2023, 2022 and 2021, respectively.
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SEGMENT REPORTING |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING During the fourth quarter of fiscal year 2023, the Company realigned its reportable segments following management’s decision to narrow the focus on core brands and streamline investment levels in the VMS business. As a result of this decision and the financial impact of the related impairment charges incurred in prior periods, the VMS operating segment, previously included in the Health and Wellness reportable segment, no longer meets the criteria to be presented as a reportable segment and is now combined with Corporate. In connection with this change, Corporate was renamed Corporate and Other. The Health and Wellness reportable segment is now comprised of the Cleaning and Professional Products operating segments. Additionally, beginning in the fourth quarter of fiscal year 2023, management changed its principle measure of segment profitability to segment adjusted earnings (losses) before interest and income taxes. Segment adjusted earnings (losses) before interest and income taxes is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as asset impairments, charges related to the streamlined operating model, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions and other nonrecurring or unusual items impacting comparability). The Company uses this measure to assess the operating results and performance of its segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. Management believes that the presentation of segment adjusted earnings (losses) before interest and income taxes excluding these items is useful to investors to assess operating performance on a consistent basis by removing the impact of the items that management believes do not directly reflect the performance of each segment's underlying operations. All periods presented have been recast to reflect these changes. The Company operates through strategic business units (SBUs) that are organized into the Company’s operating segments. Operating segments with shared economic and qualitative characteristics are aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Operating segments not aggregated into a reportable segment are reflected in Corporate and Other. The four reportable segments consist of the following: •Health and Wellness consists of cleaning, disinfecting and professional products mainly marketed and sold in the United States. •Household consists of bags and wraps, cat litter and grilling products marketed and sold in the United States. •Lifestyle consists of food, natural personal care products and water-filtration products marketed and sold in the United States. •International consists of products sold outside the United States. Products within this segment include laundry additives; home care products; water-filtration products; digestive health products; grilling products; cat litter; food; bags and wraps; natural personal care products; and professional cleaning and disinfecting products. Corporate and Other includes certain non-allocated administrative costs, various other non-operating income and expenses, as well as the results of the VMS business. Assets in Corporate and Other include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, operating lease right-of-use assets, other long-term assets and deferred taxes, as well as the assets related to the VMS business.
(1)Represents a noncash impairment charge of $445 related to the VMS business recorded in fiscal year 2023. As a result of the segment changes noted above, $433 and $12 was recast from the third quarter fiscal year 2023 interim reporting period for the Health and Wellness and International reportable segments, respectively. (2)Represents a noncash impairment charge of $329 related to the VMS business recorded in fiscal year 2021. As a result of the segment reporting changes noted above, $329 was recast from the fiscal year 2021 reporting period from the Health and Wellness reportable segment. (3)Represents noncash charges of $28 on investments and related arrangements made with a Professional Products business supplier. As a result of the segment changes noted above, this amount was recast from the fiscal year 2021 reporting period for the Health and Wellness reportable segment. (4)Represents an $82 noncash net gain from the remeasurement of the Company’s previously held investment in its Saudi joint venture. As a result of the segment changes noted above, this amount was recast from the fiscal year 2021 reporting period for the International reportable segment. (5)Represents restructuring and related implementation costs, net for the streamlined operating model of $60. As a result of the segment changes noted above, this amount was recast from the fiscal year 2023 reporting period for Corporate and Other. For informational purposes the following table provides the approximate restructuring and related implementation costs, net corresponding to the Company's segments as a percent of the total costs for the fiscal year ended June 30:
(6)Represents expenses related to the Company's digital capabilities and productivity enhancements investment. As a result of the segment changes noted above, these amounts were recast from the fiscal year 2023 and fiscal year 2022 reporting periods for Corporate and Other.
All intersegment sales are eliminated and are not included in the Company’s reportable net sales. Net sales to the Company’s largest customer, Walmart Stores, Inc. and its affiliates, were 26%, 25%, and 25% of consolidated net sales for each of the fiscal years ended June 30, 2023, 2022 and 2021, respectively, and occurred across all of the Company’s reportable segments. No other customers accounted for 10% or more of the Company’s consolidated net sales in any of these fiscal years. The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by operating segment under the new reporting structure, for the fiscal years ended June 30:
The Company’s products are marketed and sold globally. The following table provides the Company’s global product lines, which were sold in the U.S. and International, that accounted for 10% or more of consolidated net sales for the fiscal years ended June 30:
Net sales and property, plant and equipment, net, by geographic area for and as of the fiscal years ended June 30 were as follows:
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RELATED PARTY TRANSACTIONS |
12 Months Ended |
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Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company holds various equity investments with ownership percentages of up to 50% in a number of consumer products businesses, which operate both within and outside the United States. The equity investments, presented in Other assets and accounted for under the equity method, were $43 and $52 as of the fiscal years ended June 30, 2023 and 2022, respectively. The Company has no ongoing capital commitments, loan requirements, guarantees or any other types of arrangements under the terms of its agreements that would require any future cash contributions or disbursements arising out of an equity investment. Transactions with the Company’s equity investees typically represent payments for contract manufacturing and purchases of raw materials. Payments to related parties, including equity investees, for such transactions during the fiscal years ended June 30, 2023, 2022 and 2021 were $87, $117 and $44, respectively. Receipts from and ending accounts receivable and payable balances related to the Company’s related parties were not significant during or as of the end of each of the fiscal years presented.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
12 Months Ended | ||
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Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Pay vs Performance Disclosure | |||
Net Income (Loss) Attributable to Parent | $ 149 | $ 462 | $ 710 |
Insider Trading Arrangements |
3 Months Ended | 12 Months Ended |
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Jun. 30, 2023
shares
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Jun. 30, 2023
shares
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Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Kevin Jacobsen [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 4, 2023, Kevin Jacobsen, executive vice president – chief financial officer, entered into a trading plan designed to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The plan provides for sales of up to 3,346 shares of the Company's common stock beginning on August 14, 2023 and ending August 14, 2024 or when all of the shares have been sold. | |
Name | Kevin Jacobsen | |
Title | executive vice president – chief financial officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 4, 2023 | |
Arrangement Duration | 366 days | |
Aggregate Available | 3,346 | 3,346 |
Kirsten Marriner [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On June 2, 2023, Kirsten Marriner, executive vice president – chief people and corporate affairs officer, entered into a trading plan designed to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The plan provides for the potential exercise and sale of up to 48,911 options between August 31, 2023 and August 31, 2024. | |
Name | Kirsten Marriner | |
Title | executive vice president – chief people and corporate affairs officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 2, 2023 | |
Arrangement Duration | 366 days | |
Aggregate Available | 48,911 | 48,911 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation The Company is principally engaged in the production, marketing and sale of consumer products through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, drug, pet and military stores, third-party and owned e-commerce channels, and distributors. The consolidated financial statements include the statements of the Company and its wholly owned and controlled subsidiaries. All significant intercompany transactions and accounts were eliminated in consolidation.
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Use of Estimates | Use of Estimates The preparation of these consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) requires management to reach opinions as to estimates and assumptions that affect reported amounts and related disclosures. Specific areas requiring the application of management’s estimates and judgments include, among others, assumptions pertaining to accruals for consumer and trade-promotion programs, future cash flows associated with impairment testing of goodwill and other long-lived assets, uncertain tax positions, tax valuation allowances, the valuation of the Venture Agreement terminal obligation, stock-based compensation, retirement income plans, as well as legal, environmental and insurance matters, and the valuation of assets acquired and liabilities assumed in connection with a business combination. Actual results could materially differ from estimates and assumptions made.
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Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash equivalents consist of highly liquid interest-bearing accounts, time deposits held by financial institutions and money market funds with an initial maturity at purchase of 90 days or less. The fair value of cash and cash equivalents approximates the carrying amount. The Company’s cash position includes amounts held by foreign subsidiaries and, as a result, the repatriation of certain cash balances from some of the Company’s foreign subsidiaries could result in additional withholding tax costs in certain foreign jurisdictions. However, these cash balances are generally available without legal restriction to fund local business operations. In addition, a portion of the Company’s cash balance is held in U.S. dollars by foreign subsidiaries whose functional currency is their local currency. Such U.S. dollar balances are reported on the foreign subsidiaries’ books in their functional currency, and the impact on such balances from foreign currency exchange rate differences is recorded in Other (income) expense, net.
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Inventories | Inventories The Company values its inventories using both the First-In, First-Out (FIFO) and the Last-In, First-Out (LIFO) methods. The FIFO inventory is stated at the lower of cost or net realizable value, which includes any costs to sell or dispose. In addition, appropriate consideration is given to obsolescence, excessive inventory levels, product deterioration and other factors in evaluating net realizable value. The LIFO inventory is stated at the lower of cost or market.
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Property, Plant and Equipment and Finite-Lived Intangible Assets | Property, Plant and Equipment and Finite-Lived Intangible Assets Property, plant and equipment and finite-lived intangible assets are stated at cost. Depreciation and amortization expense are primarily calculated by the straight-line method using the estimated useful lives or lives determined by reference to the related lease contract in the case of leasehold improvements. The table below provides estimated useful lives of property, plant and equipment by asset classification.
Finite-lived intangible assets are amortized over their estimated useful lives, which range from 7 to 30 years. Property, plant and equipment and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances occur that indicate that the carrying amount of an asset (or asset group) may not be fully recoverable. The risk of impairment is initially assessed based on an estimate of the undiscounted cash flows at the lowest level for which identifiable cash flows exist. Impairment occurs when the carrying value of the asset (or asset group) exceeds the estimated future undiscounted cash flows generated by the asset (or asset group). When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset (or asset group) and its estimated fair market value. Depending on the asset, estimated fair market value may be determined either by use of a discounted cash flow model or by reference to estimated selling values of assets in similar condition.
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Capitalization of Software Costs | Capitalization of Software Costs The Company capitalizes certain qualifying costs incurred in the acquisition and development of software for internal use, including the costs of the software, materials, consultants, interest and payroll and payroll-related costs for employees during the application development stage. Internal and external costs incurred during the preliminary project stage and post implementation-operation stage, mainly training and maintenance costs, are expensed as incurred. Once the application is substantially complete and ready for its intended use, qualifying costs are amortized on a straight-line basis over the software’s estimated useful life. Capitalized internal use software is included in Property, plant and equipment. Capitalized software as a service is included in Prepaid expenses and other current assets or Other assets and is amortized using the straight-line method over the term of the hosting arrangement which is typically no greater than 10 years.
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Business Combinations | Business Combinations The Company records acquired businesses within the consolidated financial statements using the acquisition method prospectively from the acquisition date. Under the acquisition method, once control is obtained, assets acquired and liabilities assumed, including amounts attributable to noncontrolling interests, are recorded at their respective fair values on the acquisition date. The Company’s estimates of fair value are inherently uncertain and subject to refinement. The excess of the total of the purchase consideration, fair value of the noncontrolling interest and fair value of the previously held equity interest over the identifiable assets acquired and liabilities assumed is recorded as goodwill. Measurement period adjustments to the fair values of the identifiable assets acquired and liabilities assumed with the corresponding offset to goodwill, if applicable, are applied in the reporting period in which the adjustment amounts are determined based on new information obtained during the measurement period. In the event of a step acquisition, the Company records a gain or loss in Other income (expense), net on the consolidated statement of earnings as a result of remeasuring a previously held equity interest to fair value on the acquisition date. Transaction expenses are recognized separately from the business combination and are expensed as incurred.
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Impairment Review of Goodwill and Indefinite-Lived Intangible Assets | Impairment Review of Goodwill and Indefinite-Lived Intangible Assets The Company tests its goodwill, trademarks with indefinite lives and other indefinite-lived intangible assets annually for impairment in the fiscal fourth quarter unless there are indications during a different interim period that these assets may have become impaired. With respect to goodwill, the Company has the option to first assess qualitative factors, such as the maturity and stability of the reporting unit, the magnitude of the excess fair value over carrying value from a previous period’s impairment testing, other reporting unit specific operating results, microeconomic and macroeconomic factors, as well as new events and circumstances impacting the operations at the reporting unit level. The Company operates through strategic business units (SBUs) that are organized into the Company's operating segments. Reporting units for goodwill impairment testing purposes were identified as the Company's individual operating segments. If the result of a qualitative test indicates a potential for impairment of a reporting unit, a quantitative test is performed. In the quantitative test, the Company compares the estimated fair value of the reporting unit to its carrying value. If the estimated fair value of any reporting unit is less than its carrying value, an impairment charge is recorded for the difference between the carrying value and the fair value of the reporting unit. To determine the fair value of a reporting unit as part of its quantitative test, the Company uses the discounted cash flow (DCF) method under the income approach, as it believes that this approach is the most reliable indicator of the fair value of its businesses and the fair value of its future earnings and cash flows. Under this approach, which requires significant judgments, the Company estimates the future cash flows of each reporting unit and discounts these cash flows at a rate of return that reflects their relative risk. The cash flows used in the DCF method are consistent with those the Company uses in its internal planning, which gives consideration to actual business trends experienced, and the broader business strategy for the long term. The other key estimates and factors used in the DCF method include, but are not limited to, net sales and expense growth rates, commodity prices, foreign exchange rates, inflation and a terminal growth rate. Changes in such estimates or the application of alternative assumptions could produce different results. For trademarks and other intangible assets with indefinite lives, the Company has the option to first assess qualitative factors, such as the maturity and stability of the trademark or other intangible asset, the magnitude of the excess fair value over carrying value from a previous period’s impairment testing, other specific operating results, as well as new events and circumstances impacting the significant inputs used to determine the fair value of the intangible asset. If the result of a qualitative test indicates that it is more likely than not that the asset is impaired, a quantitative test is performed. When a quantitative test is performed, the estimated fair value of an asset is compared to its carrying value. If the carrying value of such asset exceeds its estimated fair value, an impairment charge is recorded for the difference between the carrying value and the estimated fair value. The Company uses the DCF method under the relief from royalty income approach to estimate the fair value of its trademarks and other intangible assets with indefinite lives. This approach requires significant judgments in determining the royalty rates and the assets’ estimated cash flows, as well as the appropriate discount and foreign exchange rates applied to those cash flows to determine fair value. Changes in such estimates or the use of alternative assumptions could produce different results.
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Leases | Leases The Company determines whether an arrangement contains a lease at inception by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration and other facts and circumstances. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are calculated based on the lease liability adjusted for any lease payments paid to the lessor at or before the commencement date and initial direct costs incurred by the Company and excludes any lease incentives received from the lessor. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. The lease term may include an option to extend or terminate the lease when it is reasonably certain that the Company will exercise that option as of the commencement date of the lease, and is reviewed in subsequent periods if a triggering event occurs. As the Company’s leases typically do not contain a readily determinable implicit rate, the Company determines the present value of the lease liability using its incremental borrowing rate at the lease commencement date based on the lease term and the currency of the lease on a collateralized basis. Variable lease payments are the portion of lease payments that are not fixed over the lease term. Variable lease payments are expensed as incurred, and include certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease, as applicable. The Company elected to combine lease and non-lease components as a single lease component and to exclude short-term leases, defined as leases with an initial term of 12 months or less, from its consolidated balance sheet.
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Restructuring Liabilities | Restructuring Liabilities The Company incurs restructuring costs in connection with workforce reductions; consolidation or closure of a facility; sale or termination of a line of business; and other actions. Such costs include employee termination benefits (one-time arrangements and benefits attributable to prior service), termination of contractual obligations, noncash asset charges and other direct incremental costs. The Company records employee termination liabilities once they are both probable and estimable for severance provided under the Company’s existing severance policy. Employee termination liabilities outside of the Company’s existing severance policy are recognized at the time relevant employees are notified, unless the employees will be retained to render service beyond a minimum retention period for transition purposes, in which case the liability is recognized ratably over the future service period. Other costs associated with a restructuring plan or exit or disposal activities, such as consulting and professional fees, facility exit costs, employee relocation, outplacement costs, accelerated depreciation or asset impairments associated with a restructuring plan, are recognized in the period in which the liability is incurred or the asset is impaired.
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Stock-based Compensation | Stock-based Compensation The Company grants various nonqualified stock-based compensation awards to eligible employees, including stock options, restricted stock awards and performance shares. For stock options, the Company estimates the fair value of each award on the date of grant using the Black-Scholes valuation model, which requires management to make estimates regarding expected option life, stock price volatility and other assumptions. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The Company estimates stock option forfeitures based on historical data for each employee grouping. The total number of stock options expected to vest is adjusted by actual and estimated forfeitures. Changes to the actual and estimated forfeitures will result in a cumulative adjustment in the period of change. Compensation expense is recorded by amortizing the grant date fair values on a straight-line basis over the vesting period, adjusted for estimated forfeitures. For restricted stock awards, the fair value of each grant issued is estimated on the date of grant based on the current market price of the stock. Forfeitures are estimated based on historical data. The total number of restricted stock awards expected to vest is adjusted by actual and estimated forfeitures. Changes to the actual and estimated forfeitures will result in a cumulative adjustment in the period of change. Compensation expense is recorded by amortizing the grant date fair values on a straight-line basis over the vesting period, adjusted for estimated forfeitures. The Company’s performance shares provide for the issuance of common stock to certain managerial staff and executive management if the Company achieves specified performance targets. The number of shares issued is dependent upon the achievement of specified performance targets. The performance period is three years and the payout determination is made at the end of the three-year performance period. Performance shares receive dividends earned during the vesting period upon vesting. The fair value of each grant issued is estimated on the date of grant based on the current market price of the stock. The total amount of compensation expense recognized reflects estimated forfeiture rates and management’s assessment of the probability that performance goals will be achieved. A cumulative adjustment is recognized to compensation expense in the current period to reflect any changes in the probability of achievement of performance goals. Cash flows resulting from tax deductions in excess of the cumulative compensation cost recognized for stock-based payment arrangements (excess tax benefits) are classified as operating cash inflows.
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Employee Benefits | Employee Benefits The Company accounts for its retirement income and retirement health care plans using actuarial methods. These methods use an attribution approach that generally spreads “plan events” over the service lives or expected lifetime (for frozen plans) of plan participants. Examples of plan events are plan amendments and changes in actuarial assumptions such as the expected return on plan assets, discount rate, rate of compensation increase and certain employee-related factors, such as retirement age and mortality. The principle underlying the attribution approach is that employees render service over their employment period on a relatively “smooth” basis and, therefore, the statement of earnings effects of retirement income and retirement health care plans are recognized in the same pattern. One of the principal assumptions used in the net periodic benefit cost calculation is the expected return on plan assets. The expected return on plan assets may result in recognized expense or income that differs from the actual returns of those plan assets in any given year. Over time, however, the goal is for the expected long-term returns to approximate the actual returns and, therefore, the expectation is that the pattern of income and expense recognition should closely match the pattern of the services provided by the participants. The Company uses a market-related value method for calculating plan assets for purposes of determining the amortization of actuarial gains and losses. The differences between actual and expected returns are recognized in the net periodic benefit cost calculation over the average remaining service period or expected lifetime (for frozen plans) of the plan participants using the corridor approach. Under this approach, only actuarial gains (losses) that exceed 5% of the greater of the projected benefit obligation or the market-related value of assets are amortized to the Company’s net periodic benefit cost. In developing its expected return on plan assets, the Company considers the long-term actual returns relative to the mix of investments that comprise its plan assets and also develops estimates of future investment returns by considering external sources. The Company recognizes an actuarial-based obligation at the onset of disability for certain benefits provided to individuals after employment, but before retirement, that includes medical, dental, vision, life and other benefits.
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Environmental Costs | Environmental Costs The Company is involved in certain environmental remediation and ongoing compliance activities. Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and based upon a reasonable estimate of the liability. The Company’s accruals reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information becomes available. Actual costs to be incurred at identified sites in future periods may vary from the estimates, given the inherent uncertainties in evaluating environmental exposures. The accrual for environmental matters is included in Accounts payable and accrued liabilities and Other liabilities in the Company’s consolidated balance sheets on an undiscounted basis due to uncertainty regarding the timing of future payments.
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Revenue Recognition and Cost of Products Sold | Revenue Recognition The Company’s revenue is primarily generated from the sale of finished product to customers. Revenue is recognized at the point in time when performance obligations under the terms of customer contracts are satisfied, which is when ownership, risks and rewards transfer, and can be on the date of shipment or the date of receipt by the customer, depending upon the particular customer arrangement. Shipping and handling activities are accounted for as contract fulfillment costs and included within Cost of products sold. After the completion of the performance obligation, there is an unconditional right to consideration as outlined in the contract. A right is considered 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 has trade promotion programs, which primarily include shelf price reductions, in-store merchandising and consumer coupons. The costs of such activities, defined as variable consideration under ASC 606, “Revenue from Contracts with Customers,” are netted against sales and recorded when the related sales take place. Accruals for trade promotion programs are established based on the Company’s best estimate of the amounts necessary to settle existing and future obligations for products sold as of the balance sheet date. Amounts accrued for trade-promotions are based on various factors such as contractual terms and sales volumes, and also incorporate estimates that include customer participation rates, the rate at which customers will achieve program performance criteria, product availability and historical consumer redemption rates. The Company provides an allowance for doubtful accounts based on its historical experience and ongoing assessment of its customers’ credit risk and aging.Cost of Products Sold Cost of products sold represents the costs directly related to the manufacture and distribution of the Company’s products and primarily includes raw materials, packaging, contract manufacturing fees, shipping and handling, warehousing, package design, depreciation, amortization, direct and indirect labor and operating costs for the Company’s manufacturing and distribution facilities, including salary, benefit costs and incentive compensation, and royalties and other charges related to the Company’s Glad Venture Agreement (See Note 9). Costs associated with developing and designing new packaging, including design, artwork, films and labeling, are expensed as incurred and included within Cost of products sold.
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Selling and Administrative Expenses | Selling and Administrative Expenses Selling and administrative expenses represent costs incurred by the Company in generating revenues and managing the business and include market research, commissions and certain administrative expenses. Administrative expenses include salary, benefits, incentive compensation, professional fees and services and other operating costs (such as software and licensing costs) associated with the Company’s non-manufacturing, non-research and development operations.
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Advertising and Research and Development Costs | Advertising and Research and Development Costs The Company expenses advertising and research and development costs in the period incurred.
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Income Taxes | Income Taxes The Company uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the anticipated future tax consequences attributable to differences between financial statement amounts and their respective tax basis. Management reviews the Company’s deferred tax assets to determine whether their value can be realized based upon available evidence. A valuation allowance is established when management believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the Company’s income tax provision in the period of change. In addition to valuation allowances, the Company provides for uncertain tax positions when such tax positions do not meet certain recognition thresholds or measurement standards. Amounts for uncertain tax positions are adjusted in quarters when new information becomes available or when positions are effectively settled.Per U.S. GAAP, foreign withholding taxes are provided on unremitted foreign earnings that are not indefinitely reinvested at the time the earnings are generated. The Company regularly reviews and assesses whether there are any changes to its indefinite reinvestment assertion and determined that none of the undistributed earnings of its foreign subsidiaries are indefinitely reinvested. As a result, the Company is providing foreign withholding taxes on the undistributed earnings of all foreign subsidiaries where applicable.
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Foreign Currency Transactions and Translations | Foreign Currency Transactions and Translation Local currencies are the functional currencies for substantially all of the Company’s foreign operations. When the transactional currency is different than the functional currency, transaction gains and losses are included as a component of Other (income) expense, net. In addition, certain assets and liabilities denominated in currencies other than a foreign subsidiary’s functional currency are reported on the subsidiary’s books in its functional currency, with the impact from exchange rate differences recorded in Other (income) expense, net. Assets and liabilities of foreign operations are translated into U.S. dollars using the exchange rates in effect at the balance sheet date, while income and expenses are translated at the respective average monthly exchange rates during the year. Gains and losses on foreign currency translations are reported as a component of Other comprehensive (loss) income. The income tax effect of currency translation adjustments is recorded as a component of deferred taxes with an offset to Other comprehensive (loss) income where appropriate. 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 consolidated statement of earnings.
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Derivative Instruments | Derivative Instruments The Company’s use of derivative instruments, principally exchange-traded futures and options contracts, and over-the counter swaps and forward contracts, is limited to non-trading purposes and is designed to partially manage exposure to changes in commodity prices, foreign currencies and interest rates. The Company’s contracts are hedges for transactions with notional amounts and periods consistent with the related exposures and do not constitute investments independent of these exposures. The changes in the fair value (i.e., gains or losses) of a derivative instrument are recorded as either assets or liabilities in the consolidated balance sheets with an offset to Net earnings or Other comprehensive (loss) income depending on whether, for accounting purposes, it has been designated and qualifies as an accounting hedge and, if so, on the type of hedging relationship. The criteria used to determine if hedge accounting treatment is appropriate are: (a) formal designation and documentation of the hedging relationship, the risk management objective and hedging strategy at hedge inception; (b) eligibility of hedged items, transactions and corresponding hedging instrument; and (c) effectiveness of the hedging relationship both at inception of the hedge and on an ongoing basis in achieving the hedging objectives. For those derivative instruments designated and qualifying as hedging instruments, the Company must designate the hedging instrument either as a fair value hedge or as a cash flow hedge. The Company designates its commodity futures, options and swaps contracts for forecasted purchases of raw materials, foreign currency forward contracts for forecasted purchases of inventory and interest rate contracts for forecasted interest payments as cash flow hedges. During the fiscal years ended June 30, 2023, 2022 and 2021, the Company had no hedging instruments designated as fair value hedges. For derivative instruments designated and qualifying as cash flow hedges, gains or losses are reported as a component of Other comprehensive (loss) income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. From time to time, the Company may have contracts not designated as hedges for accounting purposes, for which it recognizes changes in the fair value in the consolidated statement of earnings in the current period. Cash flows from hedging activities are classified as operating activities in the consolidated statements of cash flows.
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Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Issued Accounting Standards Not Yet Adopted In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” These amendments require disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. These amendments are effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. As these amendments relate to disclosures only, there are no impacts expected to the Company’s consolidated results of operations, financial position and cash flows.
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Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of June 30, 2023 and 2022, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the period included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1.
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Segment Reporting | During the fourth quarter of fiscal year 2023, the Company realigned its reportable segments following management’s decision to narrow the focus on core brands and streamline investment levels in the VMS business. As a result of this decision and the financial impact of the related impairment charges incurred in prior periods, the VMS operating segment, previously included in the Health and Wellness reportable segment, no longer meets the criteria to be presented as a reportable segment and is now combined with Corporate. In connection with this change, Corporate was renamed Corporate and Other. The Health and Wellness reportable segment is now comprised of the Cleaning and Professional Products operating segments. Additionally, beginning in the fourth quarter of fiscal year 2023, management changed its principle measure of segment profitability to segment adjusted earnings (losses) before interest and income taxes. Segment adjusted earnings (losses) before interest and income taxes is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as asset impairments, charges related to the streamlined operating model, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions and other nonrecurring or unusual items impacting comparability). The Company uses this measure to assess the operating results and performance of its segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. Management believes that the presentation of segment adjusted earnings (losses) before interest and income taxes excluding these items is useful to investors to assess operating performance on a consistent basis by removing the impact of the items that management believes do not directly reflect the performance of each segment's underlying operations. All periods presented have been recast to reflect these changes. The Company operates through strategic business units (SBUs) that are organized into the Company’s operating segments. Operating segments with shared economic and qualitative characteristics are aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Operating segments not aggregated into a reportable segment are reflected in Corporate and Other. The four reportable segments consist of the following: •Health and Wellness consists of cleaning, disinfecting and professional products mainly marketed and sold in the United States. •Household consists of bags and wraps, cat litter and grilling products marketed and sold in the United States. •Lifestyle consists of food, natural personal care products and water-filtration products marketed and sold in the United States. •International consists of products sold outside the United States. Products within this segment include laundry additives; home care products; water-filtration products; digestive health products; grilling products; cat litter; food; bags and wraps; natural personal care products; and professional cleaning and disinfecting products. Corporate and Other includes certain non-allocated administrative costs, various other non-operating income and expenses, as well as the results of the VMS business. Assets in Corporate and Other include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, operating lease right-of-use assets, other long-term assets and deferred taxes, as well as the assets related to the VMS business.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Useful Lives of Property, Plant and Equipment | The table below provides estimated useful lives of property, plant and equipment by asset classification.
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BUSINESS ACQUIRED (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Assets Acquired and Liabilities Assumed | The following table summarizes the final purchase price allocation for the fair value of the joint venture’s assets acquired and liabilities assumed and the related deferred income taxes as of the acquisition date. The finite-lived intangibles acquired primarily represent the Company reacquiring previously licensed trademarks and customer relationships. The weighted-average estimated useful life of intangible assets subject to amortization was 9 years.
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RESTRUCTURING AND RELATED COSTS (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The total restructuring and related implementation costs, net associated with the Company’s streamlined operating model plan as reflected in the Consolidated Statements of Earnings and Comprehensive Income for the fiscal year ended June 30 were:
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Restructuring Accrual Reconciliation | The following table reconciles the accrual for the streamlined operating model restructuring and related implementation costs discussed above, which are recorded within Accounts payable and accrued liabilities in the Consolidated Balance Sheets as follows for the fiscal years ended June 30:
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INVENTORIES, NET (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Inventories | Inventories, net consisted of the following as of June 30:
(1)Non-current inventories, net is recorded in Other assets.
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PROPERTY, PLANT AND EQUIPMENT, NET (Tables) |
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Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property, Plant and Equipment, Net | The table below provides estimated useful lives of property, plant and equipment by asset classification.
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GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Goodwill By Reportable Segment | The changes in the carrying amount of goodwill by reportable segment and Corporate and Other for the fiscal years ended June 30, 2023 and 2022 were as follows:
(1) $306 of goodwill related to the VMS reporting unit previously included within Health and Wellness was recast to Corporate and Other as a result of segment changes effective in the fourth quarter of fiscal year 2023. See Note 19 for more information.
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Schedule of Intangible Assets | The changes in the carrying amount of trademarks and other intangible assets for the fiscal years ended June 30, 2023 and 2022 were as follows:
(1) As of June 30, 2023 reflects changes to the useful lives of certain VMS and International indefinite-lived trademarks to finite-lived effective April 1, 2023.
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Summary of Intangible Asset Impairment Charges | Based on the outcome of these assessments, the following pre-tax, noncash impairment charges were recorded during fiscal year 2023:
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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) |
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Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consisted of the following as of June 30:
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DEBT (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Long-Term Debt | Long-term debt, carried at face value net of unamortized discounts, premiums and debt issuance costs, included the following as of June 30:
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Summary of Borrowing Capacity Under Revolving Credit Arrangements and Other Financing Arrangements | The Company’s borrowing capacity under the revolving credit agreements and other financing arrangements as of June 30 was as follows:
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OTHER LIABILITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Liabilities | Other liabilities consisted of the following as of June 30:
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 (loss) income and Net earnings were as follows during the fiscal years ended June 30:
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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 provides information about the balance sheet classification and the fair values of the Company's derivative instruments:
The following table provides information about the balance sheet classification and the fair values of the Company's other assets and liabilities for which disclosure of fair value is required:
(1)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. (2)Notes and loans payable are composed of outstanding U.S. commercial paper balances and/or amounts drawn on the Company’s credit agreements, all of which are recorded at cost, which approximates fair value. (3)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.
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OTHER CONTINGENCIES, GUARANTEES AND COMMITMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Purchase Obligations | As of June 30, 2023, the Company’s purchase obligations by purchase date were approximately as follows:
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LEASES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Supplemental balance sheet information related to the Company’s leases as of June 30 was as follows:
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Summary of Leases | Components of lease cost were as follows for the fiscal years ended June 30:
Supplemental cash flow information and noncash activity related to the Company’s leases were as follows during fiscal years ended June 30: Weighted-average remaining lease term and discount rate for the Company’s leases were as follows as of fiscal year ended June 30:
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Maturities of Operating Lease Liabilities | Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2023 were as follows:
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Maturities of Finance Lease Liabilities | Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2023 were as follows:
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STOCKHOLDERS' EQUITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Paid Per Share | Dividends per share paid to Clorox stockholders during the fiscal years ended June 30 were as follows:
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Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive net (loss) income attributable to Clorox by component were as follows for the fiscal years ended June 30:
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NET EARNINGS PER SHARE (EPS) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares Outstanding | The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS for the fiscal years ended June 30:
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STOCK-BASED COMPENSATION PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Cost and Related Income Tax Benefit | Compensation cost and the related income tax benefit recognized for stock-based compensation plans were classified as indicated below for the fiscal years ended June 30:
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Assumptions Utilized in the Valuation in Calculating the Compensation Expense for Stock Options Granted | The fair value of each stock option award granted during fiscal years 2023, 2022 and 2021 was estimated on the date of grant using the Black-Scholes valuation model and assumptions noted in the following table:
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Summary of Stock Option Activity | Details of the Company’s stock option activities are summarized below:
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Summary of Restricted Stock Award Activity | A summary of the status of the Company’s restricted stock awards is presented below:
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Summary of Performance Stock Award Activity | A summary of the status of the Company’s performance share awards is presented below:
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OTHER (INCOME) EXPENSE, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Components of Other (Income) Expense, Net | The major components of Other (income) expense, net, for the fiscal years ended June 30 were:
(1)Restructuring costs related to the Company's streamlined operating model plan (see Note 3). (2)Nonrecurring, noncash gain from the remeasurement of the Company’s previously held investment in its Saudi joint venture (see Note 2).
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Income Taxes on Continuing Operations by Tax Jurisdiction | The provision for income taxes, by tax jurisdiction, consisted of the following for the fiscal years ended June 30:
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Earnings from Continuing Operations before Income Taxes, by Tax Jurisdiction | The components of Earnings before income taxes, by tax jurisdiction, consisted of the following for the fiscal years ended June 30:
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Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate on operations follows for the fiscal years ended June 30:
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Components of Net Deferred Tax Assets (Liabilities) | The components of net deferred tax assets (liabilities) as of June 30 are shown below:
(1)Net deferred tax assets are recorded in Other assets.
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Summary of Valuation Allowance | Details of the valuation allowance were as follows as of June 30:
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Reconciliation of Gross Unrecognized Tax Benefits | The following is a reconciliation of the beginning and ending amounts of the Company’s gross unrecognized tax benefits:
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EMPLOYEE BENEFIT PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Retirement Income and Retirement Health Care Plans | Summarized information for the Company’s retirement income and retirement health care plans as of and for the fiscal years ended June 30 is as follows:
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Schedule of Amounts Recognized in the Balance Sheets |
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Schedule of Accumulated Benefit Obligations or Projected Benefit Obligations in Excess of Plan Assets | Retirement income plans with ABO or PBO in excess of plan assets as of June 30 were as follows:
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Schedule of Components of Net Periodic Benefit Cost | The net cost of the retirement income and health care plans for the fiscal years ended June 30 included the following components:
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Schedule of Items Not Yet Recognized as a Component of Postretirement Expense | Items not yet recognized as a component of postretirement expense as of June 30, 2023 consisted of:
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Net Actuarial Loss (Gain) Recorded in Accumulated Other Comprehensive Net (Loss) Income | Net actuarial loss (gain) recorded in Accumulated other comprehensive net (loss) income for the fiscal year ended June 30, 2023 included the following:
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Schedule of Weighted Average Assumptions Used | Weighted-average assumptions used to estimate the actuarial present value of benefit obligations were as follows as of June 30:
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Schedule of Expected Benefit Payments | Expected benefit payments for the Company’s retirement income and retirement health care plans as of June 30, 2023, were as follows:
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Schedule of Target Allocation and Weighted Average Allocation of Plan Assets | The target allocations and weighted average asset allocations by asset category of the investment portfolio for the Company’s domestic retirement income plans as of June 30 were:
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SEGMENT REPORTING (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Financial Information Relating to the Company's Segments |
(1)Represents a noncash impairment charge of $445 related to the VMS business recorded in fiscal year 2023. As a result of the segment changes noted above, $433 and $12 was recast from the third quarter fiscal year 2023 interim reporting period for the Health and Wellness and International reportable segments, respectively. (2)Represents a noncash impairment charge of $329 related to the VMS business recorded in fiscal year 2021. As a result of the segment reporting changes noted above, $329 was recast from the fiscal year 2021 reporting period from the Health and Wellness reportable segment. (3)Represents noncash charges of $28 on investments and related arrangements made with a Professional Products business supplier. As a result of the segment changes noted above, this amount was recast from the fiscal year 2021 reporting period for the Health and Wellness reportable segment. (4)Represents an $82 noncash net gain from the remeasurement of the Company’s previously held investment in its Saudi joint venture. As a result of the segment changes noted above, this amount was recast from the fiscal year 2021 reporting period for the International reportable segment. (5)Represents restructuring and related implementation costs, net for the streamlined operating model of $60. As a result of the segment changes noted above, this amount was recast from the fiscal year 2023 reporting period for Corporate and Other. For informational purposes the following table provides the approximate restructuring and related implementation costs, net corresponding to the Company's segments as a percent of the total costs for the fiscal year ended June 30:
(6)Represents expenses related to the Company's digital capabilities and productivity enhancements investment. As a result of the segment changes noted above, these amounts were recast from the fiscal year 2023 and fiscal year 2022 reporting periods for Corporate and Other.
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Summary of Concentration Percentages | The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by operating segment under the new reporting structure, for the fiscal years ended June 30:
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Net Sales and Property, Plant and Equipment, Net by Geographic Area | Net sales and property, plant and equipment, net, by geographic area for and as of the fiscal years ended June 30 were as follows:
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BUSINESS ACQUIRED (Fair Value Of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions |
Jul. 09, 2020 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,252 | $ 1,558 | $ 1,575 | |
Joint Venture in Kingdom of Saudi Arabia | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 208 | |||
Property, plant and equipment | 46 | |||
Working capital, net (includes cash acquired of $26) | 34 | |||
Noncurrent liabilities, net | (5) | |||
Deferred income taxes | (19) | |||
Total fair value of net assets | 412 | |||
Less: Fair value of noncontrolling interests | (198) | |||
Less: Fair value of previously held equity interest | (103) | |||
Total purchase consideration | 111 | |||
Cash acquired | 26 | |||
Joint Venture in Kingdom of Saudi Arabia | Reacquired rights | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles included in Other intangible assets, net | 138 | |||
Joint Venture in Kingdom of Saudi Arabia | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles included in Other intangible assets, net | $ 10 |
RESTRUCTURING AND RELATED COSTS (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related costs | $ 60 | $ 0 | $ 0 |
Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring cost | 30 | ||
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring cost | $ 40 |
RESTRUCTURING AND RELATED COSTS (Restructuring Accrual Reconciliation) (Details) $ in Millions |
12 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Beginning accrual balance | $ 0 |
Charges | 71 |
Cash payments | (43) |
Ending accrual balance | 28 |
Employee-Related Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning accrual balance | 0 |
Charges | 52 |
Cash payments | (29) |
Ending accrual balance | 23 |
Other | |
Restructuring Reserve [Roll Forward] | |
Beginning accrual balance | 0 |
Charges | 19 |
Cash payments | (14) |
Ending accrual balance | $ 5 |
INVENTORIES, NET (Summary of Inventories) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 595 | $ 593 |
Raw materials and packaging | 182 | 191 |
Work in process | 8 | 16 |
LIFO allowances | (87) | (40) |
Total inventories, net | 698 | 760 |
Non-current inventories, net | 2 | 5 |
Total current inventories, net | $ 696 | $ 755 |
INVENTORIES, NET (Narrative) (Details) |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Percentage of LIFO inventory | 36.00% | 36.00% |
PROPERTY, PLANT AND EQUIPMENT, NET (Components of Property, Plant and Equipment, Net) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 4,050 | $ 3,864 |
Less: Accumulated depreciation and amortization | (2,705) | (2,530) |
Property, plant and equipment, net | 1,345 | 1,334 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 168 | 166 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 810 | 729 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 2,355 | 2,215 |
Capitalized software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 400 | 389 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 131 | 116 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 186 | $ 249 |
PROPERTY, PLANT AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 236 | $ 224 | $ 211 |
Non-cash capital expenditures | 9 | 6 | 13 |
Capitalized software costs | |||
Property, Plant and Equipment [Line Items] | |||
Amortization | 10 | 8 | 6 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Asset retirement obligation | 0 | 0 | |
Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 206 | $ 193 | $ 179 |
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization / Impairments | $ 450 | $ 418 |
Total gross carrying amount | 1,162 | 1,302 |
Total net carrying amount | 712 | 884 |
Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross carrying amount | 494 | 668 |
Net carrying amount | 494 | 668 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 89 | 57 |
Accumulated amortization / Impairments | 40 | 38 |
Net carrying amount | 49 | 19 |
Other intangible assets, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 579 | 577 |
Accumulated amortization / Impairments | 410 | 380 |
Net carrying amount | $ 169 | $ 197 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accounts payable | $ 1,021 | $ 960 |
Compensation and employee benefit costs | 262 | 176 |
Trade and sales promotion costs | 157 | 199 |
Dividends | 23 | 19 |
Other | 196 | 115 |
Total | $ 1,659 | $ 1,469 |
DEBT (Summary of Borrowing Capacity Under Revolving Credit Arrangements and Other Financing Arrangements) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Line of credit facility, borrowing capacity | $ 1,235 | $ 1,234 |
Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, borrowing capacity | 1,200 | 1,200 |
Foreign and other credit lines | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, borrowing capacity | $ 35 | $ 34 |
OTHER LIABILITIES (Summary of Other Liabilities) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Venture Agreement terminal obligation, net | $ 495 | $ 468 |
Employee benefit obligations | 259 | 263 |
Taxes | 19 | 19 |
Environmental liabilities | 24 | 23 |
Other | 28 | 18 |
Total | $ 825 | $ 791 |
OTHER LIABILITIES (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Class of Warrant or Right [Line Items] | ||
Option to extend agreement (in years) | 7 years | |
Venture agreement terminal obligation, fair value | $ 527 | $ 635 |
Venture agreement terminal obligation, recognized | $ 495 | $ 468 |
Glad | ||
Class of Warrant or Right [Line Items] | ||
Percentage of ownership by venture partner | 20.00% | 20.00% |
OTHER CONTINGENCIES, GUARANTEES AND COMMITMENTS (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 28 | $ 28 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued liabilities, Other Liabilities, Noncurrent | Accounts payable and accrued liabilities, Other Liabilities, Noncurrent |
Letter of credit | $ 14 | $ 14 |
Letter of credit, amount outstanding | 0 | 0 |
Alameda County, California Matter | ||
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 12 | 14 |
Remediation period (in years) | 30 years | |
Maximum undiscounted costs | $ 28 | |
Dickinson County, Michigan Matter | ||
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 10 | $ 9 |
Remediation period (in years) | 30 years | |
Percentage of liability for aggregate remediation and associated costs, other than legal fees | 24.30% |
OTHER CONTINGENCIES, GUARANTEES AND COMMITMENTS (Summary of Purchase Obligations) (Details) $ in Millions |
Jun. 30, 2023
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 170 |
2025 | 88 |
2026 | 54 |
2027 | 36 |
2028 | 12 |
Thereafter | 40 |
Total | $ 400 |
LEASES (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
May 25, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Leases [Abstract] | ||||
Remaining lease terms (up to) | 34 years | |||
Minimum operating lease payment on lease not yet commenced | $ 2 | |||
Minimum finance lease payment on lease not yet commenced | 0 | |||
Proceeds from sale of productive assets | $ 16 | |||
Sale-leaseback transaction, carrying value | 2 | |||
Gain on sale-leaseback transaction | $ 14 | $ 0 | $ 14 | $ 0 |
Lease term | 10 years | |||
Lease term, option to terminate, period | 7 years |
LEASES (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Operating leases | ||
Right-of-use assets | $ 346 | $ 342 |
Current lease liabilities | 87 | 78 |
Non-current lease liabilities | 310 | 314 |
Total operating lease liabilities | $ 397 | $ 392 |
Finance leases | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Right-of-use assets | $ 29 | $ 18 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities |
Current lease liabilities | $ 9 | $ 6 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Non-current lease liabilities | $ 21 | $ 13 |
Total finance lease liabilities | $ 30 | $ 19 |
LEASES (Components of Lease Cost) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
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Leases [Abstract] | ||
Operating lease cost | $ 89 | $ 83 |
Finance lease cost: | ||
Amortization of right-of-use assets | 9 | 9 |
Interest on lease liabilities | 1 | 1 |
Total finance lease cost | 10 | 10 |
Variable lease cost | 87 | 80 |
Short term lease cost | $ 4 | $ 6 |
LEASES (Supplemental Cash Flow Information and Non-Cash Activity) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
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Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases, net | $ 88 | $ 84 |
Operating cash flows from finance leases | 1 | 1 |
Financing cash flows from finance leases | 8 | 9 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 84 | 94 |
Finance leases | $ 21 | $ 18 |
LEASES (Weighted-Average Remaining Lease Term and Discount Rate) (Details) |
Jun. 30, 2023 |
---|---|
Weighted-average remaining lease term: | |
Operating leases | 6 years |
Finance leases | 4 years |
Weighted-average discount rate: | |
Operating leases | 3.10% |
Finance leases | 4.60% |
LEASES (Maturities of Lease Liabilities) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Operating leases | ||
2024 | $ 96 | |
2025 | 88 | |
2026 | 73 | |
2027 | 59 | |
2028 | 45 | |
Thereafter | 71 | |
Total lease payments | 432 | |
Less: Imputed interest | 35 | |
Total lease liabilities | 397 | $ 392 |
Finance leases | ||
2024 | 11 | |
2025 | 9 | |
2026 | 7 | |
2027 | 4 | |
2028 | 1 | |
Thereafter | 1 | |
Total lease payments | 33 | |
Less: Imputed interest | 3 | |
Total lease liabilities | $ 30 | $ 19 |
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
12 Months Ended | ||||
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Jul. 27, 2023 |
Nov. 18, 2020 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Intercompany Foreign Currency Balance [Line Items] | |||||
Dividends per share declared (in dollars per share) | $ 4.72 | $ 3.48 | $ 4.49 | ||
Subsequent Event | |||||
Intercompany Foreign Currency Balance [Line Items] | |||||
Dividends per share declared (in dollars per share) | $ 1.20 | ||||
Long-Term Intercompany Loans | |||||
Intercompany Foreign Currency Balance [Line Items] | |||||
Amounts reclassified from Accumulated other comprehensive net (loss) income | $ 0 | $ 0 | $ 11 | ||
Common Stock | |||||
Intercompany Foreign Currency Balance [Line Items] | |||||
Treasury stock retired (in shares) | 28,000 | 28,000 |
STOCKHOLDERS' EQUITY (Dividends Paid Per Share) (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Stockholders' Equity Note [Abstract] | |||
Dividends per share paid (in dollars per share) | $ 4.72 | $ 4.64 | $ 4.44 |
NET EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Earnings Per Share [Abstract] | |||
Basic (in shares) | 123,589 | 123,113 | 125,570 |
Dilutive effect of stock options and other (in shares) | 592 | 793 | 1,729 |
Diluted (in shares) | 124,181 | 123,906 | 127,299 |
Antidilutive stock options and other (in shares) | 1,444 | 2,448 | 476 |
STOCK-BASED COMPENSATION PLANS (Compensation Cost and Related Income Tax Benefit) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | $ 73 | $ 52 | $ 50 |
Related income tax benefit | 17 | 12 | 12 |
Cost of products sold | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | 7 | 6 | 6 |
Selling and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | 61 | 42 | 40 |
Research and development costs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation costs | $ 5 | $ 4 | $ 4 |
STOCK-BASED COMPENSATION PLANS (Summary of Restricted Stock Award Activity) (Details) - Restricted Stock - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Number of Shares | |||
Outstanding, beginning balance (in shares) | 412 | ||
Granted (in shares) | 312 | ||
Vested (in shares) | (128) | ||
Forfeited (in shares) | (52) | ||
Outstanding, ending balance (in shares) | 544 | 412 | |
Weighted-Average Grant Date Fair Value per Share | |||
Outstanding, beginning balance (in dollars per share) | $ 168 | ||
Granted (in dollars per share) | 143.20 | $ 157.50 | $ 210.78 |
Vested (in dollars per share) | 171 | ||
Forfeited (in dollars per share) | 160 | ||
Outstanding, ending balance (in dollars per share) | $ 155 | $ 168 |
STOCK-BASED COMPENSATION PLANS (Summary of Performance Stock Award Activity) (Details) - Performance Shares - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Number of Shares | |||
Outstanding, beginning balance (in shares) | 313 | ||
Granted (in shares) | 156 | ||
Distributed (in shares) | (76) | ||
Forfeited (in shares) | (25) | ||
Outstanding, ending balance (in shares) | 368 | 313 | |
Vested and deferred (in shares) | 48 | ||
Weighted-Average Grant Date Fair Value per Share | |||
Outstanding, beginning balance (in dollars per share) | $ 162 | ||
Granted (in dollars per share) | 141.90 | $ 162.46 | $ 212.00 |
Distributed (in dollars per share) | 137 | ||
Forfeited (in dollars per share) | 167 | ||
Outstanding, ending balance (in dollars per share) | 158 | $ 162 | |
Vested and deferred (in dollars per share) | $ 128 |
OTHER (INCOME) EXPENSE, NET (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
May 25, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Other Income and Expenses [Abstract] | ||||
Amortization of trademarks and other intangible assets | $ 30 | $ 31 | $ 31 | |
Trust investment (gains) losses, net | (14) | 21 | (25) | |
Net periodic benefit cost | 16 | 16 | 15 | |
Foreign exchange transaction (gains) losses, net | 13 | 3 | 10 | |
Income from equity investees | (4) | (6) | (5) | |
Interest income | (16) | (5) | (5) | |
Restructuring costs | 52 | 0 | 0 | |
Gain on sale-leaseback transaction | $ (14) | 0 | (14) | 0 |
Gain on previously held equity investment | 0 | 0 | (85) | |
Other | 3 | (9) | (8) | |
Other (income) expense, net | $ 80 | $ 37 | $ (72) |
INCOME TAXES (Provision for Income Taxes by Tax Jurisdiction and Domestic and Foreign Earnings before Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Current | |||
Federal | $ 153 | $ 71 | $ 146 |
State | 33 | 17 | 26 |
Foreign | 40 | 43 | 41 |
Total current | 226 | 131 | 213 |
Deferred | |||
Federal | (120) | 6 | (26) |
State | (28) | (2) | (9) |
Foreign | (1) | 1 | 3 |
Total deferred | (149) | 5 | (32) |
Total | 77 | 136 | 181 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
United States | 154 | 483 | 696 |
Foreign | 84 | 124 | 204 |
Earnings (losses) before income taxes | $ 238 | $ 607 | $ 900 |
INCOME TAXES (Effective Income Tax Rate Reconciliation) (Details) |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 21.00% | 21.00% | 21.00% |
State taxes (net of federal tax benefits) | 1.60% | 1.90% | 1.50% |
Foreign tax rate differential | 8.60% | 3.10% | 0.20% |
Federal excess tax benefits | (1.80%) | (0.90%) | (2.70%) |
Net U.S. tax on foreign income | (2.30%) | (1.70%) | (0.50%) |
VMS goodwill impairment | 8.60% | 0.00% | 0.00% |
Federal research and development credits | (2.70%) | (0.80%) | (0.40%) |
Other differences | (0.60%) | (0.20%) | 1.00% |
Effective tax rate | 32.40% | 22.40% | 20.10% |
INCOME TAXES (Components of Net Deferred Tax Assets) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2020 |
---|---|---|---|---|
Deferred tax assets | ||||
Compensation and benefit programs | $ 123 | $ 100 | ||
Net operating loss and tax credit carryforwards | 94 | 93 | ||
Operating and finance lease liabilities | 104 | 98 | ||
Accruals and reserves | 46 | 35 | ||
Capitalized research and development | 34 | 0 | ||
Inventory costs | 32 | 25 | ||
Other | 34 | 32 | ||
Subtotal | 467 | 383 | ||
Valuation allowance | (59) | (52) | $ (42) | $ (38) |
Total deferred tax assets | 408 | 331 | ||
Deferred tax liabilities | ||||
Fixed and intangible assets | (157) | (242) | ||
Lease right-of-use assets | (96) | (91) | ||
Other | (36) | (29) | ||
Total deferred tax liabilities | (289) | (362) | ||
Net deferred tax assets (liabilities) | 119 | (31) | ||
Net deferred tax assets | 147 | 35 | ||
Net deferred tax liabilities | $ (28) | $ (66) |
INCOME TAXES (Valuation Allowance) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowance at beginning of year | $ (52) | $ (42) | $ (38) |
Net decrease/(increase) for other foreign deferred tax assets | (1) | (1) | (1) |
Net decrease/(increase) for foreign and U.S. net operating loss carryforwards and tax credits | (6) | (9) | (3) |
Valuation allowance at end of year | $ (59) | $ (52) | $ (42) |
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 17 | $ 21 | $ 22 |
Gross increases - tax positions in prior periods | 1 | 0 | 1 |
Gross decreases - tax positions in prior periods | (3) | (7) | (5) |
Gross increases - current period tax positions | 2 | 4 | 3 |
Gross decreases - current period tax positions | 0 | 0 | 0 |
Lapse of applicable statute of limitations | 0 | (1) | 0 |
Settlements | 0 | 0 | 0 |
Unrecognized tax benefits at end of year | $ 17 | $ 17 | $ 21 |
EMPLOYEE BENEFIT PLANS (Schedule of Accumulated Benefit Obligations or Projected Benefit Obligations in Excess of Plan Assets) (Details) - Retirement Income - Retirement Income - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
ABO Exceeds the Fair Value of Plan Assets | ||
Projected benefit obligation | $ 119 | $ 133 |
Accumulated benefit obligation | 118 | 132 |
Fair value of plan assets | 0 | 2 |
PBO Exceeds the Fair Value of Plan Assets | ||
Projected benefit obligation | 121 | 133 |
Accumulated benefit obligation | 119 | 132 |
Fair value of plan assets | $ 2 | $ 2 |
EMPLOYEE BENEFIT PLANS (Schedule of Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 16 | $ 16 | $ 15 |
Retirement Income | Retirement Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1 | 2 |
Interest cost | 18 | 15 | 15 |
Expected return on plan assets | (10) | (15) | (16) |
Settlement loss recognized | 0 | 7 | 5 |
Amortization of unrecognized items | 8 | 9 | 11 |
Total | 17 | 17 | 17 |
Retirement Health Care | Retirement Health Care | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 1 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 |
Settlement loss recognized | 0 | 0 | 0 |
Amortization of unrecognized items | (2) | (1) | (2) |
Total | $ (1) | $ 0 | $ (1) |
EMPLOYEE BENEFIT PLANS (Items Not Yet Recognized as a Component of Postretirement Expense) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Retirement Income | Retirement Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | $ 213 | $ 222 |
Prior service benefit | (5) | |
Net deferred income tax (assets) liabilities | (50) | |
Accumulated other comprehensive loss (income) | 158 | |
Retirement Health Care | Retirement Health Care | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | (14) | $ (15) |
Prior service benefit | 0 | |
Net deferred income tax (assets) liabilities | 3 | |
Accumulated other comprehensive loss (income) | $ (11) |
EMPLOYEE BENEFIT PLANS (Net Actuarial Loss (Gain) Recorded in Accumulated Other Comprehensive Net (Loss) Income) (Details) $ in Millions |
12 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Retirement Income | Retirement Income | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Net actuarial loss (gain) as of beginning of year | $ 222 |
Amortization during the year | (9) |
Loss (gain) during the year | 0 |
Net actuarial loss (gain) as of end of year | 213 |
Retirement Health Care | Retirement Health Care | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Net actuarial loss (gain) as of beginning of year | (15) |
Amortization during the year | 2 |
Loss (gain) during the year | (1) |
Net actuarial loss (gain) as of end of year | $ (14) |
EMPLOYEE BENEFIT PLANS (Schedule of Weighted Average Assumptions Used) (Details) |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Retirement Income | Retirement Income | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.37% | 3.72% | |
Rate of compensation increase | 3.62% | 3.09% | |
Interest crediting rate | 2.67% | 2.69% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.72% | 2.56% | 2.45% |
Rate of compensation increase | 3.09% | 3.02% | 2.92% |
Expected return on plan assets | 2.67% | 3.00% | 3.08% |
Interest crediting rate | 2.69% | 2.57% | 1.92% |
Retirement Health Care | Retirement Health Care | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 5.10% | 4.65% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.65% | 2.61% | 2.51% |
EMPLOYEE BENEFIT PLANS (Expected Benefit Payments) (Details) $ in Millions |
Jun. 30, 2023
USD ($)
|
---|---|
Retirement Income | Retirement Income | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 358 |
2025 | 15 |
2026 | 15 |
2027 | 14 |
2028 | 13 |
Fiscal years 2029 through 2033 | 52 |
Retirement Health Care | Retirement Health Care | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 2 |
2025 | 2 |
2026 | 2 |
2027 | 2 |
2028 | 2 |
Fiscal years 2029 through 2033 | $ 10 |
EMPLOYEE BENEFIT PLANS (Target Allocations and Weighted Average Asset Allocations) (Details) - Retirement Income |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage | 100.00% | 100.00% |
Percent of Plan Assets | 100.00% | 100.00% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage | 80.00% | 100.00% |
Percent of Plan Assets | 79.00% | 99.00% |
Cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage | 20.00% | 0.00% |
Percent of Plan Assets | 21.00% | 1.00% |
SEGMENT REPORTING (Narrative) (Details) - segment |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Concentration Risk [Line Items] | |||
Number of reportable segments | 4 | ||
Net Sales | Walmart Stores, Inc. | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 26.00% | 25.00% | 25.00% |
SEGMENT REPORTING (Net Sales and Property, Plant and Equipment, Net by Geographic Area) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 7,389 | $ 7,107 | $ 7,341 |
Property, plant and equipment, net | 1,345 | 1,334 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 6,237 | 5,951 | 6,207 |
Property, plant and equipment, net | 1,192 | 1,180 | |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,152 | 1,156 | $ 1,134 |
Property, plant and equipment, net | $ 153 | $ 154 |
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Related Party Transactions [Abstract] | |||
Percentage ownership of equity investments, maximum | 50.00% | ||
Equity method investments | $ 43 | $ 52 | |
Payments to related parties | $ 87 | $ 117 | $ 44 |
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