Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2017 | Oct. 18, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | CLOROX CO /DE/ | |
Entity Central Index Key | 21,076 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 128,938,551 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 1,500 | $ 1,443 |
Cost of products sold | 827 | 803 |
Gross profit | 673 | 640 |
Selling and administrative expenses | 204 | 200 |
Advertising costs | 134 | 128 |
Research and development costs | 32 | 31 |
Interest expense | 21 | 22 |
Other (income) expense, net | 3 | (5) |
Earnings from continuing operations before income taxes | 279 | 264 |
Income taxes on continuing operations | 87 | 85 |
Earnings from continuing operations | 192 | 179 |
Earnings (losses) from discontinued operations, net of tax | 0 | 0 |
Net earnings | $ 192 | $ 179 |
Net earnings (losses) per share, Basic | ||
Continuing operations, basic (in dollars per share) | $ 1.49 | $ 1.39 |
Discontinued operations, basic (in dollars per share) | 0 | 0 |
Basic net earnings per share (in dollars per share) | 1.49 | 1.39 |
Net earnings (losses) per share, Diluted | ||
Continuing operations, diluted (in dollars per share) | 1.46 | 1.36 |
Discontinued operations, diluted (in dollars per share) | 0 | 0 |
Diluted net earnings per share (in dollars per share) | $ 1.46 | $ 1.36 |
Weighted average shares outstanding (in thousands) | ||
Basic (in shares) | 129,019 | 129,449 |
Diluted (in shares) | 131,509 | 132,193 |
Dividend declared per share (in dollars per share) | $ 0.84 | $ 0.80 |
Comprehensive income | $ 211 | $ 182 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 468 | $ 418 |
Receivables, net | 531 | 565 |
Inventories, net | 462 | 459 |
Prepaid expenses and other current assets | 59 | 72 |
Total current assets | 1,520 | 1,514 |
Property, plant and equipment, net of accumulated depreciation and amortization of $2,015 and $2,001, respectively | 934 | 931 |
Goodwill | 1,203 | 1,196 |
Trademarks, net | 654 | 654 |
Other intangible assets, net | 66 | 68 |
Other assets | 223 | 210 |
Total assets | 4,600 | 4,573 |
Current liabilities | ||
Notes and loans payable | 13 | 404 |
Current maturities of long-term debt | 400 | 400 |
Accounts payable and accrued liabilities | 912 | 1,005 |
Income taxes payable | 51 | 0 |
Total current liabilities | 1,376 | 1,809 |
Long-term debt | 1,787 | 1,391 |
Other liabilities | 783 | 770 |
Deferred income taxes | 62 | 61 |
Total liabilities | 4,008 | 4,031 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock: $1.00 par value; 750,000,000 shares authorized; 158,741,461 shares issued as of September 30, 2017 and June 30, 2017; and 128,923,671 and 129,014,172 shares outstanding as of September 30, 2017 and June 30, 2017, respectively | 159 | 159 |
Additional paid-in capital | 922 | 928 |
Retained earnings | 2,524 | 2,440 |
Treasury shares, at cost: 29,817,790 and 29,727,289 shares as of September 30, 2017 and June 30, 2017, respectively | (2,489) | (2,442) |
Accumulated other comprehensive net (losses) income | (524) | (543) |
Stockholders’ equity | 592 | 542 |
Total liabilities and stockholders’ equity | $ 4,600 | $ 4,573 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation and amortization | $ 2,015 | $ 2,001 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 158,741,461 | 158,741,461 |
Common stock, shares outstanding (in shares) | 128,923,671 | 129,014,172 |
Treasury stock, shares (in shares) | 29,817,790 | 29,727,289 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | ||
Net earnings | $ 192 | $ 179 |
Deduct: Losses from discontinued operations, net of tax | 0 | 0 |
Earnings from continuing operations | 192 | 179 |
Adjustments to reconcile earnings from continuing operations to net cash provided by continuing operations: | ||
Depreciation and amortization | 40 | 41 |
Stock-based compensation | 12 | 12 |
Deferred income taxes | (4) | (2) |
Other | 17 | (14) |
Changes in: | ||
Receivables, net | 35 | 74 |
Inventories, net | (10) | (23) |
Prepaid expenses and other current assets | (7) | (6) |
Accounts payable and accrued liabilities | (89) | (153) |
Income taxes payable | 71 | 62 |
Net cash provided by continuing operations | 257 | 170 |
Net cash provided by discontinued operations | 1 | 0 |
Net cash provided by operations | 258 | 170 |
Investing activities: | ||
Capital expenditures | (49) | (59) |
Other | 13 | 1 |
Net cash used for investing activities | (36) | (58) |
Financing activities: | ||
Notes and loans payable, net | (391) | 95 |
Long-term debt borrowings, net of issuance costs | 396 | 0 |
Treasury stock purchased | (66) | (110) |
Cash dividends paid | (108) | (104) |
Issuance of common stock for employee stock plans and other | (7) | 15 |
Net cash used for financing activities | (176) | (104) |
Effect of exchange rate changes on cash and cash equivalents | 4 | (1) |
Net increase in cash and cash equivalents | 50 | 7 |
Cash and cash equivalents: | ||
Beginning of period | 418 | 401 |
End of period | $ 468 | $ 408 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim condensed consolidated financial statements for the three months ended September 30, 2017 and 2016 , in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its subsidiaries (the Company) for the periods presented. However, the financial results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The information in this report should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2017 , which includes a complete set of footnote disclosures including the Company’s significant accounting policies. Recently Issued Accounting Standards Recently Issued Accounting Standards not yet adopted In August 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the hedge accounting recognition and presentation requirements to better align an entity’s risk management activities with its financial reporting. This standard also simplifies the application of hedge accounting in certain situations. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires presenting the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. This standard also requires that other components of the net periodic benefit cost be presented separately from the line item(s) that includes service costs and outside of any subtotal of operating income, if one is presented, on a retrospective basis. Additionally, the new guidance limits the components that are eligible for capitalization in assets to only the service cost component. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2019. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation will depend on the classification of a lease as either a finance or an operating lease. ASU 2016-02 also requires expanded disclosures about leasing arrangements. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which replaces most of the existing U.S. GAAP revenue recognition guidance and is intended to improve and converge with international standards on the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers, including information about significant judgments and changes in judgments. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2019, and is expected to be applied on a modified retrospective basis. Based on the Company's preliminary assessment, the adoption of the standard is not expected to have a significant impact on its annual consolidated financial statements; however, there may be an impact on the Company's financial results in interim periods due to the timing of recognition for certain trade promotion spending. As the Company completes its overall assessment, it is also identifying potential changes to its accounting policies, business processes, systems and controls to align with the new revenue recognition guidance and disclosure requirements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On September 22, 2014, the Company's Venezuela affiliate, Corporación Clorox de Venezuela S.A. (Clorox Venezuela) announced that it was discontinuing its operations, effective immediately, and seeking to sell its assets. Since fiscal year 2012, Clorox Venezuela has been required to sell more than two thirds of its products at prices frozen by the Venezuelan government. During this same period, Clorox Venezuela experienced successive years of hyperinflation resulting in significant sustained increases in its input costs, including packaging, raw materials, transportation and wages. As a result, Clorox Venezuela had been selling its products at a loss, resulting in ongoing operating losses. Clorox Venezuela repeatedly met with government authorities in an effort to help them understand the rapidly declining state of the business, including the need for immediate, significant and ongoing price increases and other critical remedial actions to address these adverse impacts. Based on the Venezuelan government’s representations, Clorox Venezuela had expected significant price increases would be forthcoming much earlier; however, the price increases subsequently approved were insufficient and would have caused Clorox Venezuela to continue operating at a significant loss into the foreseeable future. As such, Clorox Venezuela was no longer financially viable and was forced to discontinue its operations. On September 26, 2014, the Company reported that Venezuelan Vice President Jorge Arreaza announced, with endorsement by President Nicolás Maduro, that the Venezuelan government had occupied the Santa Lucía and Guacara production facilities of Clorox Venezuela. On November 6, 2014, the Company reported that the Venezuelan government had published a resolution granting a government-sponsored Special Administrative Board full authority to restart and operate the business of Clorox Venezuela, thereby reaffirming the government's expropriation of Clorox Venezuela’s assets. Further, President Nicolás Maduro announced the government's intention to facilitate the resumed production of bleach and other cleaning products at Clorox Venezuela plants. He also announced his approval of a financial credit to invest in raw materials and production at the plants. These actions by the Venezuelan government were taken without the consent or involvement of Clorox Venezuela, its parent Clorox Spain S.L. (Clorox Spain) or any of their affiliates. Clorox Venezuela, Clorox Spain and their affiliates reserved their rights under all applicable laws and treaties. With this exit, the financial results of Clorox Venezuela are reflected as discontinued operations in the Company’s condensed consolidated financial statements for all periods presented. The results of Clorox Venezuela had historically been part of the International reportable segment. There were no net sales for each of the three months ended September 30, 2017 and 2016 , and losses from discontinued operations, net of tax were insignificant for these same periods. |
INVENTORIES, NET
INVENTORIES, NET | 3 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories, net, consisted of the following as of: 9/30/2017 6/30/2017 Finished goods $ 368 $ 363 Raw materials and packaging 115 119 Work in process 5 3 LIFO allowances (26 ) (26 ) Total $ 462 $ 459 |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2017 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Financial Risk Management and Derivative Instruments The Company is exposed to certain commodity, foreign currency and interest rate risks related to its ongoing business operations and uses derivative instruments to mitigate its exposure to these risks. Commodity Price Risk Management The Company may use commodity exchange traded futures and over-the-counter swap contracts, which are generally no longer than 2 years , to fix the price of a portion of its forecasted raw material requirements. Commodity purchase contracts are measured at fair value using market quotations obtained from commodity derivative dealers. As of September 30, 2017 and June 30, 2017 , the notional amount of commodity derivatives was $26 , of which $14 related to jet fuel swaps used for the charcoal business and $12 related to soybean oil futures used for the food business. Foreign Currency Risk Management The Company may also enter into certain over-the-counter derivative contracts to manage a portion of the Company’s forecasted foreign currency exposure associated with the purchase of inventory. These foreign currency contracts generally have durations of no longer than 2 years. The foreign exchange contracts are measured at fair value using information quoted by foreign exchange dealers. The notional amounts of outstanding foreign currency forward contracts used by the Company’s subsidiaries to hedge forecasted purchases of inventory were $43 as of September 30, 2017 , and $49 as of June 30, 2017 , respectively. Interest Rate Risk Management The Company may enter into over-the-counter interest rate forward contracts to fix a portion of the benchmark interest rate prior to the anticipated issuance of fixed rate debt or to manage the Company’s level of fixed and floating rate debt. These interest rate forward contracts generally have durations of less than 12 months. The interest rate contracts are measured at fair value using information quoted by U.S. government bond dealers. As of September 30, 2017 and June 30, 2017 , the Company had no outstanding interest rate forward contracts. Commodity, Foreign Exchange and Interest Rate Derivatives The Company designates its commodity forward and future contracts for forecasted purchases of raw materials, foreign currency forward contracts for forecasted purchases of inventory, and interest rate forward contracts for forecasted interest payments as cash flow hedges. The effects of derivative instruments designated as hedging instruments on Other comprehensive income (loss) and Net earnings were as follows: Gains (losses) recognized in Other comprehensive income Three Months Ended 9/30/2017 9/30/2016 Commodity purchase derivative contracts $ 2 $ — Foreign exchange derivative contracts (1 ) — Interest rate derivative contracts 2 — Total $ 3 $ — Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings Three Months Ended 9/30/2017 9/30/2016 Commodity purchase derivative contracts $ — $ (1 ) Foreign exchange derivative contracts (1 ) (1 ) Interest rate derivative contracts (2 ) (2 ) Total $ (3 ) $ (4 ) The gains (losses) reclassified from Accumulated other comprehensive net losses and recognized in Net earnings during the three months ended September 30, 2017 and 2016 , for commodity purchase and foreign exchange contracts were included in Cost of products sold, and for interest rate contracts were included in Interest expense. The estimated amount of the existing net gain (loss) in Accumulated other comprehensive losses as of September 30, 2017 , which is expected to be reclassified into Net earnings within the next twelve months is $(6) . Gains and losses on derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in Net earnings. During each of the three months ended September 30, 2017 and 2016 , hedge ineffectiveness was not significant. Counterparty Risk Management and Derivative Contract Requirements The Company utilizes a variety of financial institutions as counterparties for over-the-counter derivative instruments. The Company enters into agreements governing the use of over-the-counter derivative instruments and sets internal limits on the aggregate over-the-counter derivative instrument positions held with each counterparty. Certain terms of these agreements require the Company or the counterparty to post collateral when the fair value of the derivative instrument exceeds contractually defined counterparty liability position limits. Of the over-the-counter derivative instruments held as of both September 30, 2017 and June 30, 2017 , $1 contained such terms. As of both September 30, 2017 and June 30, 2017 , neither the Company nor any counterparty was required to post any collateral as no counterparty liability position limits were exceeded. Certain terms of the agreements governing the Company’s over-the-counter derivative instruments require the credit ratings, as assigned by Standard & Poor’s and Moody’s to the Company and its counterparties, to remain at a level equal to or better than the minimum of an investment grade credit rating. If the Company’s credit ratings were to fall below investment grade, the counterparties to the derivative instruments could request full collateralization on derivative instruments in net liability positions. As of both September 30, 2017 and June 30, 2017 , the Company and each of its counterparties had been assigned investment grade credit ratings by both Standard & Poor’s and Moody’s. Certain of the Company’s exchange-traded futures contracts used for commodity price risk management include requirements for the Company to post collateral in the form of a cash margin account held by the Company’s broker for trades conducted on that exchange. As of September 30, 2017 and June 30, 2017 , the Company maintained cash margin balances related to exchange-traded futures contracts of $0 and $1 , respectively, which are classified as Prepaid expenses and other current assets in the condensed consolidated balance sheets. Trust Assets The Company has held interests in mutual funds and cash equivalents as part of 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 condensed consolidated balance sheets. The interests in mutual funds are measured at fair value using quoted market prices. The Company has designated these marketable securities as trading investments. Fair Value Measurements Financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of September 30, 2017 and June 30, 2017 , the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the periods included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. The following table summarizes the fair value of the Company’s assets and liabilities for which disclosure of fair value is required: 9/30/2017 6/30/2017 Balance sheet Fair value Carrying Estimated Carrying Estimated Assets Investments including money market funds Cash and cash (a) 1 $ 257 $ 257 $ 221 $ 221 Time deposits Cash and cash (a) 2 139 139 115 115 Commodity purchase swaps contracts Prepaid expenses and other current assets 2 2 2 1 1 Trust assets for nonqualified deferred compensation plans Other assets 1 76 76 72 72 $ 474 $ 474 $ 409 $ 409 Liabilities Notes and loans payable Notes and loans payable (b) 2 $ 13 $ 13 $ 404 $ 404 Commodity purchase swaps contracts Accounts payable and accrued liabilities 2 — — 1 1 Foreign exchange forward contracts Accounts payable and accrued liabilities 2 2 2 1 1 Current maturities of long-term debt and Long-term debt Current maturities of long- (c) 2 2,187 2,248 1,791 1,855 $ 2,202 $ 2,263 $ 2,197 $ 2,261 ____________________ (a) Cash and cash equivalents are composed of time deposits and other interest bearing investments including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value. (b) Notes and loans payable is composed of U.S. commercial paper and/or other similar short-term debts issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value. (c) Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of Long-term debt, including current maturities, was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2. |
DEBT
DEBT | 3 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT In September 2017, the Company issued $400 of senior notes with an annual fixed interest rate of 3.10% and a maturity date of October 1, 2027 under its existing shelf registration statement filed with the SEC. Interest on the notes is payable semi-annually in April and October. Additionally, the Company entered into, and subsequently terminated interest rate forward contracts with a notional amount of $200 related to the issuance, which resulted in an insignificant gain to Accumulated other comprehensive net (losses) income. The notes carry an effective interest rate of 3.13% , which includes the impact of amortizing debt issuance costs and the gain on the interest rate forward contracts over the life of the notes. The notes rank equally with all of the Company's existing senior indebtedness. The proceeds from the debt issuance were used to repay commercial paper in September 2017. In October 2017, the Company used commercial paper borrowings to repay its $400 senior notes with an annual fixed interest rate of 5.95% . |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In determining its quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The effective tax rate on earnings from continuing operations was 31.3% for the three months ended September 30, 2017 and 32.0% for the three months ended September 30, 2016 . The decrease in the effective tax rate on earnings from continuing operations was primarily due to higher excess tax benefits from stock-based compensation in the current period. |
NET EARNINGS PER SHARE (EPS)
NET EARNINGS PER SHARE (EPS) | 3 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
NET EARNINGS PER SHARE (EPS) | NET EARNINGS PER SHARE (EPS) The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS: Three Months Ended 9/30/2017 9/30/2016 Basic 129,019 129,449 Dilutive effect of stock options and other 2,490 2,744 Diluted 131,509 132,193 Antidilutive stock options and other 1,174 — The Company has two share repurchase programs: an open-market purchase program with an authorized aggregate purchase amount of up to $750 , all of which was available from share repurchases as of September 30, 2017 , and a program to offset the anticipated impact of share dilution related to share-based awards (the Evergreen Program), which has no authorization limit as to amount or timing of repurchases. There were no share repurchases under the open-market purchase program during either of the three months ended September 30, 2017 and 2016 . Share repurchases under the Evergreen Program were as follows during the three month ended September 30: Three Months Ended 9/30/2017 9/30/2016 Amount Shares (in 000's) Amount Shares (in 000's) Evergreen Program $ 60 450 $ 113 883 |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 3 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME The following table provides a summary of Comprehensive income for the periods indicated: Three Months Ended 9/30/2017 9/30/2016 Earnings from continuing operations $ 192 $ 179 Earnings (losses) from discontinued operations, net of tax — — Net earnings 192 179 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 14 (1 ) Net unrealized gains (losses) on derivatives 5 3 Pension and postretirement benefit adjustments — 1 Total other comprehensive income (loss), net of tax 19 3 Comprehensive income $ 211 $ 182 Changes in Accumulated other comprehensive net (losses) income by component were as follows for the three months ended September 30 : Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive (losses) income Balance as of June 30, 2016 $ (353 ) $ (44 ) $ (173 ) $ (570 ) Other comprehensive income (loss) before reclassifications (1 ) — — (1 ) Amounts reclassified from Accumulated other comprehensive net losses — 4 2 6 Income tax benefit (expense) — (1 ) (1 ) (2 ) Net current period other comprehensive income (loss) (1 ) 3 1 3 Balance as of September 30, 2016 $ (354 ) $ (41 ) $ (172 ) $ (567 ) Balance as of June 30, 2017 $ (356 ) $ (37 ) $ (150 ) $ (543 ) Other comprehensive income (loss) before reclassifications 16 3 — 19 Amounts reclassified from Accumulated other comprehensive net losses — 3 1 4 Income tax benefit (expense) (2 ) (1 ) (1 ) (4 ) Net current period other comprehensive income (loss) 14 5 — 19 Balance as of September 30, 2017 $ (342 ) $ (32 ) $ (150 ) $ (524 ) Included in foreign currency translation adjustments are re-measurement losses on long-term intercompany loans where settlement is not planned or anticipated in the foreseeable future. For the three months ended September 30, 2017 and 2016, Other comprehensive income (loss) on these loans totaled $(1) and $0 , respectively, and there were no amounts reclassified from Accumulated other comprehensive net (losses) income for the periods presented. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Sep. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The following table summarizes the components of net periodic benefit cost for the Company’s retirement income plans: Three Months Ended 9/30/2017 9/30/2016 Service cost $ — $ — Interest cost 6 5 Expected return on plan assets (1) (5 ) (5 ) Amortization of unrecognized items 3 3 Total $ 4 $ 3 (1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2018 net periodic benefit cost is 4.42% . During the three months ended September 30, 2017 and 2016 , the Company made $2 and $17 in contributions to the domestic retirement income plans, respectively. |
OTHER CONTINGENCIES AND GUARANT
OTHER CONTINGENCIES AND GUARANTEES | 3 Months Ended |
Sep. 30, 2017 | |
OTHER CONTINGENCIES AND GUARANTEES [Abstract] | |
OTHER CONTINGENCIES AND GUARANTEES | OTHER CONTINGENCIES AND GUARANTEES Contingencies The Company is involved in certain environmental matters, including response actions at various locations. The Company had recorded liabilities totaling $28 as of September 30, 2017 and June 30, 2017 for its share of aggregate future remediation costs related to these matters. One matter, which accounted for $14 of the recorded liability as of September 30, 2017 and June 30, 2017 relates to environmental costs associated with one of the Company’s former operations at a site located in Alameda County, California. In November 2016, at the request of regulators and with the assistance of environmental consultants, the Company submitted a Feasibility Study that evaluated various options for managing the site and included estimates of the related costs. As a result, the Company recorded in Other (income) expense, net an undiscounted liability for costs estimated to be incurred over a 30 -year period, based on the option recommended in the Feasibility Study. However, as a result of ongoing discussions with regulators, in June 2017 the Company increased its recorded liability to $14 , which reflects anticipated costs to implement additional remediation measures at this site. While the Company believes its latest estimate is reasonable, regulators could require the Company to implement one of the other options evaluated in the Feasibility Study, with estimated undiscounted costs of up to $28 over an estimated 30 -year period, or require the Company to take other actions and incur costs not included in the study. Another matter in Dickinson County, Michigan, at the site of one of the Company's former operations for which the Company is jointly and severally liable, accounted for $12 of the recorded liability as of September 30, 2017 and June 30, 2017 . This amount reflects the Company's agreement to be liable for 24.3% of the aggregate remediation and associated costs for this matter pursuant to a cost-sharing arrangement with a third party. With the assistance of environmental consultants, the Company maintains an undiscounted liability representing its current best estimate of its share of the capital expenditures, maintenance and other costs that may be incurred over an estimated 30 -year remediation period. Although it is reasonably possible that the Company’s exposure may exceed the amount recorded for the Dickinson County matter, any amount of such additional exposures, or range of exposures, is not estimable at this time. The Company's estimated losses related to these matters are sensitive to a variety of uncertain factors, including the efficacy of any remediation efforts, changes in any remediation requirements, and the future availability of alternative clean-up technologies. The Company is subject to various legal proceedings, claims and other loss contingencies, including, without limitation, loss contingencies relating to contractual arrangements, product liability, patents and trademarks, advertising, labor and employment, environmental, health and safety and other matters. With respect to these proceedings, claims and other loss contingencies, while considerable uncertainty exists, in the opinion of management at this time, the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, either individually or in the aggregate, on the Company’s condensed consolidated financial statements taken as a whole. Guarantees In conjunction with divestitures and other transactions, the Company may provide typical indemnifications (e.g., indemnifications for representations and warranties and retention of previously existing environmental, tax and employee liabilities) that have terms that vary in duration and in the potential amount of the total obligation and, in many circumstances, are not explicitly defined. The Company has not made, nor does it believe that it is probable that it will make, any material payments relating to its indemnifications, and believes that any reasonably possible payments would not have a material adverse effect, either individually or in the aggregate, on the Company’s condensed consolidated financial statements taken as a whole. The Company had not recorded any liabilities on the aforementioned guarantees as of September 30, 2017 and June 30, 2017. As of September 30, 2017 , the Company was a party to letters of credit of $9 primarily related to one of its insurance carriers, of which $0 had been drawn upon. |
SEGMENT RESULTS
SEGMENT RESULTS | 3 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT RESULTS | SEGMENT RESULTS The Company operates through strategic business units that are aggregated into four reportable segments based on the economics and nature of the products sold: Cleaning, Household, Lifestyle and International. Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, other investments and deferred taxes. The table below presents reportable segment information and a reconciliation of the segment information to the Company’s consolidated Net sales and Earnings from continuing operations before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate. Net sales Three Months Ended 9/30/2017 9/30/2016 Cleaning $ 559 $ 534 Household 441 422 Lifestyle 246 236 International 254 251 Corporate — — Total $ 1,500 $ 1,443 Earnings (losses) from continuing operations before income taxes Three Months Ended 9/30/2017 9/30/2016 Cleaning $ 172 $ 164 Household 73 69 Lifestyle 64 62 International 23 27 Corporate (53 ) (58 ) Total $ 279 $ 264 All intersegment sales are eliminated and are not included in the Company’s reportable segments’ net sales. Net sales to the Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, as a percentage of consolidated net sales, were 26% for each of the three months ended September 30, 2017 and 2016. In August 2017, the Company sold the Aplicare business, previously reported in the Cleaning reportable segment. For the fiscal year ended June 30, 2017, the Aplicare business had net sales of $46 and insignificant net earnings excluding the $21 non-cash impairment charge recorded in the second quarter of fiscal year 2017. |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements for the three months ended September 30, 2017 and 2016 , in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its subsidiaries (the Company) for the periods presented. However, the financial results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The information in this report should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2017 , which includes a complete set of footnote disclosures including the Company’s significant accounting policies. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Issued Accounting Standards not yet adopted In August 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the hedge accounting recognition and presentation requirements to better align an entity’s risk management activities with its financial reporting. This standard also simplifies the application of hedge accounting in certain situations. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires presenting the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. This standard also requires that other components of the net periodic benefit cost be presented separately from the line item(s) that includes service costs and outside of any subtotal of operating income, if one is presented, on a retrospective basis. Additionally, the new guidance limits the components that are eligible for capitalization in assets to only the service cost component. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2019. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation will depend on the classification of a lease as either a finance or an operating lease. ASU 2016-02 also requires expanded disclosures about leasing arrangements. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which replaces most of the existing U.S. GAAP revenue recognition guidance and is intended to improve and converge with international standards on the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers, including information about significant judgments and changes in judgments. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2019, and is expected to be applied on a modified retrospective basis. Based on the Company's preliminary assessment, the adoption of the standard is not expected to have a significant impact on its annual consolidated financial statements; however, there may be an impact on the Company's financial results in interim periods due to the timing of recognition for certain trade promotion spending. As the Company completes its overall assessment, it is also identifying potential changes to its accounting policies, business processes, systems and controls to align with the new revenue recognition guidance and disclosure requirements. |
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of September 30, 2017 and June 30, 2017 , the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the periods included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. |
Segment Results | The Company operates through strategic business units that are aggregated into four reportable segments based on the economics and nature of the products sold: Cleaning, Household, Lifestyle and International. Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, other investments and deferred taxes. |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net, consisted of the following as of: 9/30/2017 6/30/2017 Finished goods $ 368 $ 363 Raw materials and packaging 115 119 Work in process 5 3 LIFO allowances (26 ) (26 ) Total $ 462 $ 459 |
FINANCIAL INSTRUMENTS AND FAI19
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
Effects of Derivative Instruments Designated as Hedging Instruments on OCI | The effects of derivative instruments designated as hedging instruments on Other comprehensive income (loss) and Net earnings were as follows: Gains (losses) recognized in Other comprehensive income Three Months Ended 9/30/2017 9/30/2016 Commodity purchase derivative contracts $ 2 $ — Foreign exchange derivative contracts (1 ) — Interest rate derivative contracts 2 — Total $ 3 $ — |
Effects of Derivative Instruments Designated as Hedging Instruments on Net Earnings | Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings Three Months Ended 9/30/2017 9/30/2016 Commodity purchase derivative contracts $ — $ (1 ) Foreign exchange derivative contracts (1 ) (1 ) Interest rate derivative contracts (2 ) (2 ) Total $ (3 ) $ (4 ) |
Schedule of Assets and Liabilities for Fair Value Disclosure | The following table summarizes the fair value of the Company’s assets and liabilities for which disclosure of fair value is required: 9/30/2017 6/30/2017 Balance sheet Fair value Carrying Estimated Carrying Estimated Assets Investments including money market funds Cash and cash (a) 1 $ 257 $ 257 $ 221 $ 221 Time deposits Cash and cash (a) 2 139 139 115 115 Commodity purchase swaps contracts Prepaid expenses and other current assets 2 2 2 1 1 Trust assets for nonqualified deferred compensation plans Other assets 1 76 76 72 72 $ 474 $ 474 $ 409 $ 409 Liabilities Notes and loans payable Notes and loans payable (b) 2 $ 13 $ 13 $ 404 $ 404 Commodity purchase swaps contracts Accounts payable and accrued liabilities 2 — — 1 1 Foreign exchange forward contracts Accounts payable and accrued liabilities 2 2 2 1 1 Current maturities of long-term debt and Long-term debt Current maturities of long- (c) 2 2,187 2,248 1,791 1,855 $ 2,202 $ 2,263 $ 2,197 $ 2,261 ____________________ (a) Cash and cash equivalents are composed of time deposits and other interest bearing investments including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value. (b) Notes and loans payable is composed of U.S. commercial paper and/or other similar short-term debts issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value. (c) Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of Long-term debt, including current maturities, was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2. |
NET EARNINGS PER SHARE (EPS) (T
NET EARNINGS PER SHARE (EPS) (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares Outstanding and Antidilutive Shares | The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS: Three Months Ended 9/30/2017 9/30/2016 Basic 129,019 129,449 Dilutive effect of stock options and other 2,490 2,744 Diluted 131,509 132,193 Antidilutive stock options and other 1,174 — |
Schedule of Share Repurchases Under Authorized Programs | , all of which was available from share repurchases as of September 30, 2017 , and a program to offset the anticipated impact of share dilution related to share-based awards (the Evergreen Program), which has no authorization limit as to amount or timing of repurchases. There were no share repurchases under the open-market purchase program during either of the three months ended September 30, 2017 and 2016 . Share repurchases under the Evergreen Program were as follows during the three month ended September 30: Three Months Ended 9/30/2017 9/30/2016 Amount Shares (in 000's) Amount Shares (in 000's) Evergreen Program $ 60 450 $ 113 883 |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Comprehensive Income | The following table provides a summary of Comprehensive income for the periods indicated: Three Months Ended 9/30/2017 9/30/2016 Earnings from continuing operations $ 192 $ 179 Earnings (losses) from discontinued operations, net of tax — — Net earnings 192 179 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 14 (1 ) Net unrealized gains (losses) on derivatives 5 3 Pension and postretirement benefit adjustments — 1 Total other comprehensive income (loss), net of tax 19 3 Comprehensive income $ 211 $ 182 |
Schedule of Changes in Accumulated Other Comprehensive Net (Losses) Income | Changes in Accumulated other comprehensive net (losses) income by component were as follows for the three months ended September 30 : Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive (losses) income Balance as of June 30, 2016 $ (353 ) $ (44 ) $ (173 ) $ (570 ) Other comprehensive income (loss) before reclassifications (1 ) — — (1 ) Amounts reclassified from Accumulated other comprehensive net losses — 4 2 6 Income tax benefit (expense) — (1 ) (1 ) (2 ) Net current period other comprehensive income (loss) (1 ) 3 1 3 Balance as of September 30, 2016 $ (354 ) $ (41 ) $ (172 ) $ (567 ) Balance as of June 30, 2017 $ (356 ) $ (37 ) $ (150 ) $ (543 ) Other comprehensive income (loss) before reclassifications 16 3 — 19 Amounts reclassified from Accumulated other comprehensive net losses — 3 1 4 Income tax benefit (expense) (2 ) (1 ) (1 ) (4 ) Net current period other comprehensive income (loss) 14 5 — 19 Balance as of September 30, 2017 $ (342 ) $ (32 ) $ (150 ) $ (524 ) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The following table summarizes the components of net periodic benefit cost for the Company’s retirement income plans: Three Months Ended 9/30/2017 9/30/2016 Service cost $ — $ — Interest cost 6 5 Expected return on plan assets (1) (5 ) (5 ) Amortization of unrecognized items 3 3 Total $ 4 $ 3 (1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2018 net periodic benefit cost is 4.42% . |
SEGMENT RESULTS (Tables)
SEGMENT RESULTS (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Selected Financial Information Relating to the Company's Segments | The table below presents reportable segment information and a reconciliation of the segment information to the Company’s consolidated Net sales and Earnings from continuing operations before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate. Net sales Three Months Ended 9/30/2017 9/30/2016 Cleaning $ 559 $ 534 Household 441 422 Lifestyle 246 236 International 254 251 Corporate — — Total $ 1,500 $ 1,443 Earnings (losses) from continuing operations before income taxes Three Months Ended 9/30/2017 9/30/2016 Cleaning $ 172 $ 164 Household 73 69 Lifestyle 64 62 International 23 27 Corporate (53 ) (58 ) Total $ 279 $ 264 |
DISCONTINUED OPERATIONS (Summar
DISCONTINUED OPERATIONS (Summary of (Losses) Gains from Discontinued Operations) (Details) - Clorox Venezuela [Member] - USD ($) $ in Millions | 3 Months Ended | 39 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Minimum percentage of products required to be sold at frozen price | 66.67% | ||
Net sales | $ 0 | $ 0 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 368 | $ 363 |
Raw materials and packaging | 115 | 119 |
Work in process | 5 | 3 |
LIFO allowances | (26) | (26) |
Total | $ 462 | $ 459 |
FINANCIAL INSTRUMENTS AND FAI26
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) $ in Millions | 3 Months Ended | |
Sep. 30, 2017USD ($)instrument | Jun. 30, 2017USD ($)instrument | |
Derivative [Line Items] | ||
Maximum duration, foreign exchange contracts | 2 years | |
Number of interest rate derivatives held | instrument | 0 | 0 |
Estimated amount of the existing net gain (loss) to be reclassified into earnings in the next 12 months | $ (6) | |
Derivative instruments subject to contractually defined counterparty liability position limits | 1 | $ 1 |
Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional amounts | $ 200 | |
Total Commodity Purchase Derivative Contracts [Member] | ||
Derivative [Line Items] | ||
Maximum duration, commodity contracts | 2 years | |
Notional amounts | $ 26 | |
Cash margin balances amount | 0 | 1 |
Jet Fuel Swaps [Member] | ||
Derivative [Line Items] | ||
Notional amounts | 14 | |
Soybean Oil Futures [Member] | ||
Derivative [Line Items] | ||
Notional amounts | 12 | |
Purchases of Inventory [Member] | Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Notional amounts | $ 43 | $ 49 |
FINANCIAL INSTRUMENTS AND FAI27
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of the Effects of Derivative Instruments Designated as Hedging Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Other comprehensive income | $ 3 | $ 0 |
Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings | (3) | (4) |
Commodity Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Other comprehensive income | 2 | 0 |
Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings | 0 | (1) |
Interest Rate Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Other comprehensive income | (1) | 0 |
Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings | (1) | (1) |
Foreign Exchange Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Other comprehensive income | 2 | 0 |
Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings | $ (2) | $ (2) |
FINANCIAL INSTRUMENTS AND FAI28
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities for Fair Value Disclosure) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 468 | $ 418 | $ 408 | $ 401 |
Total assets | 4,600 | 4,573 | ||
Notes and loans payable | 13 | 404 | ||
Accounts payable and accrued liabilities | 912 | 1,005 | ||
Total liabilities | 4,008 | 4,031 | ||
Reported Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets | 474 | 409 | ||
Total liabilities | 2,202 | 2,197 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets | 474 | 409 | ||
Total liabilities | 2,263 | 2,261 | ||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | Money Market Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 257 | 221 | ||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | Money Market Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 257 | 221 | ||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Bank Time Deposits [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 139 | 115 | ||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Bank Time Deposits [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 139 | 115 | ||
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Commodity Contract [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other current assets | 2 | 1 | ||
Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Commodity Contract [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 2 | 1 | ||
Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | Trust Assets for nonqualified deferred compensation plans [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trust assets for nonqualified deferred compensation plans | 76 | 72 | ||
Other Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | Trust Assets for nonqualified deferred compensation plans [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Trust assets for nonqualified deferred compensation plans | 76 | 72 | ||
Notes and Loans Payable [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Notes and loans payable [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes and loans payable | 13 | 404 | ||
Notes and Loans Payable [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Notes and loans payable [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes and loans payable | 13 | 404 | ||
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Commodity Contract [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Accounts payable and accrued liabilities | 0 | 1 | ||
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Foreign Exchange Contract [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Accounts payable and accrued liabilities | 2 | 1 | ||
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Commodity Contract [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities | 0 | 1 | ||
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Foreign Exchange Contract [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities | 2 | 1 | ||
Current maturities of long-term debt and Long-term debt [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Long-term Debt [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Current maturities of long-term debt and Long-term debt | 2,187 | 1,791 | ||
Current maturities of long-term debt and Long-term debt [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Long-term Debt [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Current maturities of long-term debt and Long-term debt | $ 2,248 | $ 1,855 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Millions | 1 Months Ended | |
Oct. 31, 2017 | Sep. 30, 2017 | |
Senior Notes with an Annual Fixed Interest Rate of 3.10% [Member] | ||
Line of Credit Facility [Line Items] | ||
Face value of debt | $ 400 | |
Annual fixed interest rate | 3.10% | |
Effective interest rate | 3.13% | |
Interest Rate Contract [Member] | ||
Line of Credit Facility [Line Items] | ||
Notional amounts | $ 200 | |
Subsequent Event [Member] | Senior notes with an annual fixed interest rate of 5.95% [Member] | ||
Line of Credit Facility [Line Items] | ||
Annual fixed interest rate | 5.95% | |
Repayments of debt | $ 400 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate on earnings from continuing operations | 31.30% | 32.00% |
NET EARNINGS PER SHARE (EPS) (S
NET EARNINGS PER SHARE (EPS) (Schedule of Weighted Average Number of Shares) (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Basic (in shares) | 129,019 | 129,449 |
Dilutive effect of stock options and other (in shares) | 2,490 | 2,744 |
Diluted (in shares) | 131,509 | 132,193 |
Antidilutive stock options and other (in shares) | 1,174 | 0 |
NET EARNINGS PER SHARE (EPS) 32
NET EARNINGS PER SHARE (EPS) (Share Repurchase Programs) (Details) shares in Thousands, $ in Millions | 3 Months Ended | |
Sep. 30, 2017USD ($)repurchase_programshares | Sep. 30, 2016USD ($)shares | |
Share Repurchase Programs [Line Items] | ||
Number of repurchase programs | repurchase_program | 2 | |
Open-market purchase programs [Member] | ||
Share Repurchase Programs [Line Items] | ||
Authorized repurchase amount | $ 750 | |
Remaining authorized repurchase amount | 750 | |
Value of shares repurchased | 0 | $ 0 |
Evergreen Program [Member] | ||
Share Repurchase Programs [Line Items] | ||
Value of shares repurchased | $ 60 | $ 113 |
Shares repurchased (in shares) | shares | 450 | 883 |
COMPREHENSIVE INCOME (Schedule
COMPREHENSIVE INCOME (Schedule of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | ||
Earnings from continuing operations | $ 192 | $ 179 |
Earnings (losses) from discontinued operations, net of tax | 0 | 0 |
Net earnings | 192 | 179 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments | 14 | (1) |
Net unrealized gains (losses) on derivatives | 5 | 3 |
Pension and postretirement benefit adjustments | 0 | 1 |
Total other comprehensive income (loss), net of tax | 19 | 3 |
Comprehensive income | $ 211 | $ 182 |
COMPREHENSIVE INCOME (Schedul34
COMPREHENSIVE INCOME (Schedule of Changes in Accumulated Other Comprehensive Net (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | $ (356) | $ (353) |
Other comprehensive income (loss) before reclassifications | 16 | (1) |
Amounts reclassified from Accumulated other comprehensive net losses | 0 | 0 |
Income tax benefit (expense) | (2) | 0 |
Net current period other comprehensive income (loss) | 14 | (1) |
Balance, ending | (342) | (354) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | (37) | (44) |
Other comprehensive income (loss) before reclassifications | 3 | 0 |
Amounts reclassified from Accumulated other comprehensive net losses | (3) | (4) |
Income tax benefit (expense) | (1) | (1) |
Net current period other comprehensive income (loss) | 5 | 3 |
Balance, ending | (32) | (41) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | (150) | (173) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from Accumulated other comprehensive net losses | (1) | (2) |
Income tax benefit (expense) | (1) | (1) |
Net current period other comprehensive income (loss) | 0 | 1 |
Balance, ending | (150) | (172) |
AOCI Attributable to Parent [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning | (543) | (570) |
Other comprehensive income (loss) before reclassifications | 19 | (1) |
Amounts reclassified from Accumulated other comprehensive net losses | (4) | (6) |
Income tax benefit (expense) | (4) | (2) |
Net current period other comprehensive income (loss) | 19 | 3 |
Balance, ending | $ (524) | $ (567) |
COMPREHENSIVE INCOME (Narrative
COMPREHENSIVE INCOME (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Long term intercompany loans [Member] | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Re-measurement gains (losses) on long-term intercompany loans | $ (1) | $ 0 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Amounts reclassified from Accumulated other comprehensive net losses | 0 | 0 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Long term intercompany loans [Member] | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Amounts reclassified from Accumulated other comprehensive net losses | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - Retirement Income Plans [Member] - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 6 | 5 |
Expected return on plan assets | (5) | (5) |
Amortization of unrecognized items | 3 | 3 |
Total | $ (4) | (3) |
Weighted averaqge long-term expected rate or return on plan assets | 4.42% | |
United States Postretirement Benefit Plan of US Entity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discretionary contributions | $ 2 | $ 17 |
OTHER CONTINGENCIES AND GUARA37
OTHER CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Jun. 30, 2017 | |
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 28 | $ 28 |
Letter of credit | 9 | |
Letter of credit, amount outstanding | 0 | |
Alameda County, California Matter | ||
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 14 | 14 |
Remediation period | 30 years | |
Maximum undiscounted costs | $ 28 | |
Dickinson County, Michigan Matter | ||
Loss Contingencies [Line Items] | ||
Liability for aggregate future remediation costs | $ 12 | $ 12 |
Remediation period | 30 years | |
Percentage of liability for aggregate remediation and associated costs, other than legal fees | 24.30% |
SEGMENT RESULTS (Narrative) (De
SEGMENT RESULTS (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($)reportable_segment | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2017USD ($) | |
Concentration Risk [Line Items] | ||||
Number of reportable segments | reportable_segment | 4 | |||
Net sales | $ 1,500 | $ 1,443 | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Walmart Stores, Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage | 26.00% | 26.00% | ||
Aplicare Business [Member] | ||||
Concentration Risk [Line Items] | ||||
Net sales | $ 46 | |||
Asset impairment charges | $ 21 |
SEGMENT RESULTS (Selected Finan
SEGMENT RESULTS (Selected Financial Information Relating To Company's Segments ) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,500 | $ 1,443 |
Earnings from continuing operations before income taxes | 279 | 264 |
Operating Segments [Member] | Cleaning [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 559 | 534 |
Earnings from continuing operations before income taxes | 172 | 164 |
Operating Segments [Member] | Household [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 441 | 422 |
Earnings from continuing operations before income taxes | 73 | 69 |
Operating Segments [Member] | Lifestyle [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 246 | 236 |
Earnings from continuing operations before income taxes | 64 | 62 |
Operating Segments [Member] | International [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 254 | 251 |
Earnings from continuing operations before income taxes | 23 | 27 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Earnings from continuing operations before income taxes | $ (53) | $ (58) |