Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2021 | Apr. 16, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-07151 | |
Entity Registrant Name | THE CLOROX COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 31-0595760 | |
Entity Address, Address Line One | 1221 Broadway | |
Entity Address, City or Town | Oakland | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94612-1888 | |
City Area Code | 510 | |
Local Phone Number | 271-7000 | |
Title of 12(b) Security | Common Stock - $1.00 par value | |
Trading Symbol | CLX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 124,372,035 | |
Entity Central Index Key | 0000021076 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,781 | $ 1,783 | $ 5,539 | $ 4,738 |
Cost of products sold | 1,007 | 951 | 3,008 | 2,604 |
Gross profit | 774 | 832 | 2,531 | 2,134 |
Selling and administrative expenses | 237 | 269 | 744 | 690 |
Advertising costs | 200 | 184 | 566 | 461 |
Research and development costs | 32 | 39 | 104 | 103 |
Goodwill, trademark and other asset impairments | 329 | 0 | 329 | 0 |
Interest expense | 25 | 24 | 74 | 74 |
Other (income) expense, net | 10 | 19 | (85) | 16 |
Earnings (losses) before income taxes | (59) | 297 | 799 | 790 |
Income taxes | 0 | 56 | 180 | 161 |
Net earnings (losses) | (59) | 241 | 619 | 629 |
Less: Net earnings attributable to noncontrolling interests | 2 | 0 | 6 | 0 |
Net earnings (losses) attributable to Clorox | $ (61) | $ 241 | $ 613 | $ 629 |
Net earnings (losses) per share attributable to Clorox | ||||
Basic net earnings per share (in dollars per share) | $ (0.49) | $ 1.92 | $ 4.86 | $ 5.01 |
Diluted net earnings per share (in dollars per share) | $ (0.49) | $ 1.89 | $ 4.78 | $ 4.94 |
Weighted average shares outstanding (in thousands) | ||||
Basic (in shares) | 125,610 | 125,661 | 126,057 | 125,641 |
Diluted (in shares) | 125,610 | 127,328 | 128,030 | 127,236 |
Comprehensive income (loss) | $ (37) | $ 186 | $ 706 | $ 575 |
Less: Total comprehensive income attributable to noncontrolling interests | 2 | 0 | 6 | 0 |
Total comprehensive income (loss) attributable to Clorox | $ (39) | $ 186 | $ 700 | $ 575 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Current assets | ||
Cash and cash equivalents | $ 492 | $ 871 |
Receivables, net | 643 | 648 |
Inventories, net | 688 | 454 |
Prepaid expenses and other current assets | 139 | 47 |
Total current assets | 1,962 | 2,020 |
Property, plant and equipment, net of accumulated depreciation and amortization of $2,351 and $2,224, respectively | 1,251 | 1,103 |
Operating lease right-of-use assets | 328 | 291 |
Goodwill | 1,574 | 1,577 |
Trademarks, net | 694 | 785 |
Other intangible assets, net | 246 | 109 |
Other assets | 386 | 328 |
Total assets | 6,441 | 6,213 |
Current liabilities | ||
Current maturities of long-term debt | 300 | 0 |
Current operating lease liabilities | 74 | 64 |
Accounts payable and accrued liabilities | 1,445 | 1,329 |
Income taxes payable | 0 | 25 |
Total current liabilities | 1,819 | 1,418 |
Long-term debt | 2,483 | 2,780 |
Long-term operating lease liabilities | 305 | 278 |
Other liabilities | 819 | 767 |
Deferred income taxes | 77 | 62 |
Total liabilities | 5,503 | 5,305 |
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; 130,741,461 and 158,741,461 shares issued as of March 31, 2021 and June 30, 2020, respectively; and 124,359,712 and 126,198,606 shares outstanding as of March 31, 2021 and June 30, 2020, respectively | 131 | 159 |
Additional paid-in capital | 1,190 | 1,137 |
Retained earnings | 1,086 | 3,567 |
Treasury stock, at cost: 6,381,749 and 32,542,855 shares as of March 31, 2021 and June 30, 2020, respectively | (1,111) | (3,315) |
Accumulated other comprehensive net (loss) income | (553) | (640) |
Total Clorox stockholders’ equity | 743 | 908 |
Noncontrolling interests | 195 | 0 |
Total stockholders’ equity | 938 | 908 |
Total liabilities and stockholders’ equity | $ 6,441 | $ 6,213 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation and amortization | $ 2,351 | $ 2,224 |
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) | 130,741,461 | 158,741,461 |
Common stock, shares outstanding (in shares) | 124,359,712 | 126,198,606 |
Treasury stock, shares (in shares) | 6,381,749 | 32,542,855 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Net earnings | $ 619 | $ 629 |
Adjustments to reconcile net earnings to net cash provided by operations: | ||
Depreciation and amortization | 157 | 133 |
Stock-based compensation | 52 | 37 |
Deferred income taxes | (21) | 5 |
Goodwill, trademark and other asset impairments | 329 | 0 |
Other | (53) | 26 |
Changes in: | ||
Receivables, net | 46 | (102) |
Inventories, net | (220) | 50 |
Prepaid expenses and other current assets | (29) | (6) |
Accounts payable and accrued liabilities | 94 | 53 |
Operating lease right-of-use assets and liabilities, net | (1) | 7 |
Income taxes payable / prepaid | (80) | (26) |
Net cash provided by operations | 893 | 806 |
Investing activities: | ||
Capital expenditures | (232) | (158) |
Businesses acquired, net of cash acquired | (85) | 0 |
Other | (24) | 13 |
Net cash used for investing activities | (341) | (145) |
Financing activities: | ||
Notes and loans payable, net | 0 | 234 |
Treasury stock purchased | (605) | (225) |
Cash dividends paid to Clorox stockholders | (420) | (399) |
Cash dividends paid to noncontrolling interests | (18) | 0 |
Issuance of common stock for employee stock plans and other | 99 | 129 |
Net cash used for financing activities | (944) | (261) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 10 | (8) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (382) | 392 |
Cash, cash equivalents, and restricted cash: | ||
Beginning of period | 879 | 113 |
End of period | $ 497 | $ 505 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim condensed consolidated financial statements for the three and nine months ended March 31, 2021 and 2020, 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 controlled 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, 2020, 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 December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, “Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes,” which improves consistency in the application of accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and by clarifying and amending existing guidance. The standard will be effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The amendments that are related to changes in ownership of foreign equity method investments or foreign subsidiaries are to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments that are related to franchise taxes that are partially based on income are to be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments under this ASU are to be applied on a prospective basis. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. Recently Adopted Accounting Standards |
BUSINESS ACQUIRED
BUSINESS ACQUIRED | 9 Months Ended |
Mar. 31, 2021 | |
Business Combinations [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 the Company’s 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 has been 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 reflects 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 non-recurring, non-cash gain recorded in Other (income) expense, net in the condensed consolidated statement of earnings and adjusted in Other operating activities in the condensed 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 a discounted cash flow (DCF) method under the income approach. Under this approach, the Company estimates future cash flows and discounts these cash flows at a rate of return that reflects 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 fair value of the assets acquired and liabilities assumed reflects the final insignificant measurement period adjustments related to goodwill, deferred income taxes and income taxes payable. The definite-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 is 9 years. Joint Venture Goodwill $ 208 Reacquired rights (included in Other intangible assets, net) 138 Property, plant and equipment 46 Customer relationships (included in Other intangible assets, net) 10 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 Included in the Company’s results for the three and nine months ended March 31, 2021 was $19 and $65, respectively, of net sales from the joint venture. Pro forma results reflecting this transaction were not presented because it is not significant to the Company’s consolidated financial results. |
INVENTORIES, NET
INVENTORIES, NET | 9 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories, net, consisted of the following as of: 3/31/2021 6/30/2020 Finished goods $ 522 $ 340 Raw materials and packaging 188 140 Work in process 10 7 LIFO allowances (32) (33) Total $ 688 $ 454 |
GOODWILL, TRADEMARK AND OTHER A
GOODWILL, TRADEMARK AND OTHER ASSETS IMPAIRMENTS | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS | GOODWILL, TRADEMARK AND OTHER ASSETS IMPAIRMENTS During the third quarter of fiscal 2021, as a result of lower than expected actual and projected net sales growth and operating performance for the Vitamins, Minerals and Supplements (VMS) strategic business unit (SBU), 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: Impairment Charge Goodwill $ 228 Trademarks, net 86 Other intangible assets, net 14 Property, plant and equipment, net 1 Total $ 329 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 impairment charges are a result of a higher level of competitive activity than originally assumed, accelerated declines in the channel where the business is over-developed, and higher than anticipated investments to grow the business, which have 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 are based on the Company’s current estimates regarding the future financial performance of the VMS SBU and macroeconomic factors. To determine the fair value of the VMS reporting unit, the Company used a 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 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. Changes in the carrying amount of Goodwill as of March 31, 2021 from June 30, 2020, were as follows: Goodwill Health and Wellness Household Lifestyle International Total Balance as of June 30, 2020 $ 857 $ 85 $ 244 $ 391 $ 1,577 Acquisitions — — — 212 212 Translation adjustments and other — — — 4 4 Balance as of September 30, 2020 857 85 244 607 1,793 Translation adjustments and other (1) — — — 10 10 Balance as of December 31, 2020 857 85 244 617 1,803 Goodwill impairment (228) — — — (228) Translation adjustments and other — — — (1) (1) Balance as of March 31, 2021 $ 629 $ 85 $ 244 $ 616 $ 1,574 (1) Includes $(4) purchase price allocation adjustment related to the Saudi joint venture acquisition. Refer to Note 2 of the Notes to Condensed Consolidated Financial Statements. To determine the estimated fair values of the VMS related indefinite-lived trademarks, which were included within the Health and Wellness reportable segment, the Company used the 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. In addition, the useful lives of the impaired trademarks, with a remaining net carrying value of $13 as of March 31, 2021, were changed from indefinite to definite beginning on April 1, 2021, 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 16 years. The following table summarizes the carrying amount of trademarks and other intangible assets as of March 31, 2021 and as of June 30, 2020: As of March 31, 2021 As of June 30, 2020 Gross carrying amount Accumulated amortization / Impairments Net carrying amount Gross carrying amount Accumulated amortization / Impairments Net carrying amount Trademarks not subject to amortization $ 769 $ 86 $ 683 $ 766 $ — $ 766 Trademarks subject to amortization 47 36 11 47 28 19 Other intangible assets 583 337 246 424 315 109 Total $ 1,399 $ 459 $ 940 $ 1,237 $ 343 $ 894 |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 9 Months Ended |
Mar. 31, 2021 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Financial Risk Management and Derivative Instruments The Company is exposed to certain commodity, foreign currency and interest rate risks related to its ongoing business operations and uses derivative instruments to mitigate its exposure to these risks. Commodity Price Risk Management The Company may use commodity exchange traded futures and over-the-counter swap contracts, which are generally no longer than 2 years, to fix the price of a portion of its forecasted raw material requirements. Commodity purchase contracts are measured at fair value using market quotations obtained from the Chicago Board of Trade commodity futures exchange and commodity derivative dealers. As of March 31, 2021, the notional amount of commodity derivatives was $24, of which $15 related to soybean oil futures used for the Food products business and $9 related to jet fuel swaps used for the Grilling business. As of June 30, 2020, the notional amount of commodity derivatives was $27, of which $14 related to soybean oil futures and $13 related to jet fuel swaps. Foreign Currency Risk Management The Company may also enter into certain over-the-counter derivative contracts to manage a portion of the Company’s forecasted foreign currency exposure associated with the purchase of inventory. These foreign currency contracts generally have durations of no longer than 2 years. The foreign exchange contracts are measured at fair value using information quoted by foreign exchange dealers. The notional amounts of outstanding foreign currency forward contracts used by the Company’s subsidiaries to hedge forecasted purchases of inventory were $68 and $70, respectively, as of March 31, 2021 and June 30, 2020. Interest Rate Risk Management The Company may enter into over-the-counter interest rate forward or swap 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 or swap contracts historically have had durations of less than 3 years. The interest rate contracts are measured at fair value using information quoted by U.S. government bond and interest rate derivative dealers. The notional amounts of outstanding interest rate contracts used by the Company were $300 and $225, respectively, as of March 31, 2021 and June 30, 2020. These contracts represent forward starting interest rate swap contracts with a maturity date of September 2022 to manage the exposure to interest rate volatility associated with future interest payments on a forecasted debt issuance. Commodity, Foreign Exchange and Interest Rate Derivatives The Company designates its commodity forward and futures 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 (loss) income and Net earnings were as follows: Gains (losses) recognized in Other comprehensive (loss) income Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Commodity purchase derivative contracts $ 5 $ (11) $ 12 $ (8) Foreign exchange derivative contracts 2 2 (1) 2 Interest rate derivative contracts 26 — 36 — Total $ 33 $ (9) $ 47 $ (6) 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 Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Commodity purchase derivative contracts Cost of products sold $ — $ — $ (2) $ (1) Foreign exchange derivative contracts Cost of products sold — — — — Interest rate derivative contracts Interest expense (2) (2) (5) (5) Total $ (2) $ (2) $ (7) $ (6) The estimated amount of the existing net gain (loss) in Accumulated other comprehensive net (loss) income as of March 31, 2021, that is expected to be reclassified into Net earnings (losses) within the next twelve months is $2. 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 held as of March 31, 2021 and June 30, 2020, $1 and $3, respectively, contained such terms. As of March 31, 2021 and June 30, 2020, 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 March 31, 2021 and June 30, 2020, the Company and each of its counterparties had been assigned investment grade ratings by both Standard & Poor’s and Moody’s. Certain of the Company’s exchange-traded futures contracts used for commodity price risk management include requirements for the Company to post collateral in the form of a cash margin account held by the Company’s broker for trades conducted on that exchange. As of March 31, 2021 and June 30, 2020, the Company maintained cash margin balances related to exchange-traded futures contracts of $0 and $2, respectively, which are classified as Prepaid expenses and other current assets on the condensed consolidated balance sheets. Trust Assets The Company has held interests in mutual funds and cash equivalents as part of the trust assets related to its nonqualified deferred compensation plans. The participants in the nonqualified deferred compensation plans, who are the Company’s current and former employees, may select among certain mutual funds in which to invest their compensation deferrals in accordance with the terms of the plans and within the confines of the trusts, which hold the marketable securities. The trusts represent variable interest entities for which the Company is considered the primary beneficiary, and, therefore, trust assets are consolidated and included in Other assets in the condensed consolidated balance sheets. The interests in mutual funds are measured at fair value using quoted market prices. The Company has designated these marketable securities as trading investments. Fair Value Measurements Financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. As of March 31, 2021 and June 30, 2020, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. 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: 3/31/2021 6/30/2020 Balance Sheet Fair Value Carrying Estimated Carrying Estimated Assets Commodity purchase futures contracts Other current assets 1 $ 3 $ 3 $ — $ — Commodity purchase swaps contracts Other current assets 2 2 2 — — Commodity purchase swaps contracts Other assets 2 — — — — Interest rate forward contracts Other assets 2 37 37 1 1 $ 42 $ 42 $ 1 $ 1 Liabilities Commodity purchase futures contracts Accounts payable and accrued liabilities 1 $ — $ — $ 1 $ 1 Commodity purchase swaps contracts Accounts payable and accrued liabilities 2 — — 3 3 Foreign exchange forward contract Accounts payable and accrued liabilities 2 1 1 1 1 $ 1 $ 1 $ 5 $ 5 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: 3/31/2021 6/30/2020 Balance Sheet Fair Value Carrying Estimated Carrying Estimated Assets Investments, including money market funds Cash and cash equivalents (1) 1 $ 213 $ 213 $ 584 $ 584 Time deposits Cash and cash equivalents (1) 2 146 146 165 165 Trust assets for nonqualified deferred compensation plans Other assets 1 131 131 100 100 $ 490 $ 490 $ 849 $ 849 Liabilities Current maturities of long-term debt and Long-term debt Current maturities of long- term debt and Long-term debt (2) 2 2,783 2,944 2,780 3,051 $ 2,783 $ 2,944 $ 2,780 $ 3,051 ____________________ (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) 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 $329 were recorded during the third quarter of fiscal 2021, of which $228, $86, and $15 related to the goodwill of the VMS reporting unit, certain indefinite-lived trademarks and other assets, respectively. These adjustments were included as non-cash charges in the condensed consolidated statement of earnings. The non-recurring fair values utilized included unobservable Level 3 inputs based on management’s best estimates and assumptions. For additional information, refer to Note 4 of the Notes to Condensed Consolidated Financial Statements |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESIn 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 (losses) was (1.4)% and 22.5% for the current three and nine months ended March 31, 2021, respectively, and 18.9% and 20.4% for the prior three and nine months ended March 31, 2020, respectively. The substantially lower tax rate on loss before income taxes in the current three month period and higher tax rate on earnings before income taxes in the current nine month period were driven by the partial non-deductibility of impaired VMS goodwill. |
NET EARNINGS (LOSSES) PER SHARE
NET EARNINGS (LOSSES) PER SHARE (EPS) | 9 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET EARNINGS (LOSSES) PER SHARE (EPS) | NET EARNINGS (LOSSES) 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 Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Basic 125,610 125,661 126,057 125,641 Dilutive effect of stock options and other — 1,667 1,973 1,595 Diluted 125,610 127,328 128,030 127,236 Antidilutive stock options and other 4,826 — 428 2 Basic net earnings (losses) per share and Diluted net earnings (losses) per share are calculated on Net earnings (losses) attributable to Clorox. Since the Company generated net losses attributable to Clorox for the three months ended March 31, 2021, there was no dilutive effect of stock options and other instruments because their impact would be antidilutive. |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) The following table provides a summary of Comprehensive income (loss) for the periods indicated: Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Net earnings (losses) $ (59) $ 241 $ 619 $ 629 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments (7) (51) 40 (58) Net unrealized gains (losses) on derivatives 27 (5) 42 1 Pension and postretirement benefit adjustments 2 1 5 3 Total other comprehensive (loss) income, net of tax 22 (55) 87 (54) Comprehensive income (loss) (37) 186 706 575 Less: Total comprehensive income attributable to noncontrolling interests 2 — 6 — Total comprehensive income (loss) attributable to Clorox $ (39) $ 186 $ 700 $ 575 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS ’ EQUITY Changes in the components of Stockholders’ equity were as follows for the periods indicated: Three Months Ended March 31 (Dollars in millions except per share data; shares in thousands) Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Non-controlling interests Total Stockholders ’ Equity Amount Shares Amount Shares Balance as of December 31, 2019 $ 159 158,741 $ 1,062 $ 3,292 $ (3,357) (33,717) $ (601) $ — $ 555 Net earnings — — — 241 — — — — 241 Other comprehensive (loss) income — — — — — — (55) — (55) Dividends to Clorox stockholders ($1.06 per share declared) — — — (135) — — — — (135) Stock-based compensation — — 18 — — — — — 18 Other employee stock plan activities — — 31 — 70 1,083 — — 101 Treasury stock purchased — — — — (30) (184) — — (30) Balance as of March 31, 2020 $ 159 158,741 $ 1,111 $ 3,398 $ (3,317) (32,818) $ (656) $ — $ 695 Balance as of December 31, 2020 $ 131 130,741 $ 1,176 $ 1,302 $ (850) (5,017) $ (575) $ 196 $ 1,380 Net earnings (losses) — — — (61) — — — 2 (59) Other comprehensive (loss) income — — — — — — 22 — 22 Dividends to Clorox stockholders ($1.11 per share declared) — — — (139) — — — — (139) Dividends to non-controlling interests — — — — — — — (3) (3) Stock-based compensation — — 17 — — — — — 17 Other employee stock plan activities — — (3) (16) 44 283 — — 25 Treasury stock purchased — — — — (305) (1,648) — — (305) Balance as of March 31, 2021 $ 131 130,741 $ 1,190 $ 1,086 $ (1,111) (6,382) $ (553) $ 195 $ 938 Nine Months Ended March 31 (Dollars in millions except per share data; shares in thousands) Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Non-controlling interests Total Stockholders ’ Equity Amount Shares Amount Shares Balance as of June 30, 2019 $ 159 158,741 $ 1,046 $ 3,150 $ (3,194) (33,055) $ (602) $ — $ 559 Cumulative effect of accounting changes, net of tax (1) — — — 22 — — — — 22 Net earnings — — — 629 — — — — 629 Other comprehensive (loss) income — — — — — — (54) — (54) Dividends to Clorox stockholders ($3.18 per share declared) — — — (402) — — — — (402) Stock-based compensation — — 37 — — — — — 37 Other employee stock plan activities — — 28 (1) 96 1,661 — — 123 Treasury stock purchased — — — — (219) (1,424) — — (219) Balance as of March 31, 2020 $ 159 158,741 $ 1,111 $ 3,398 $ (3,317) (32,818) $ (656) $ — $ 695 Balance as of June 30, 2020 $ 159 158,741 $ 1,137 $ 3,567 $ (3,315) (32,543) $ (640) $ — $ 908 Net earnings — — — 613 — — — 6 619 Other comprehensive (loss) income — — — — — — 87 — 87 Dividends to Clorox stockholders ($3.33 per share declared) — — — (421) — — — — (421) Dividends to noncontrolling interests — — — — — — — (9) (9) Business combinations including purchase accounting adjustments — — — — — — — 198 198 Stock-based compensation — — 52 — — — — — 52 Other employee stock plan activities — — 1 (33) 141 1,233 — — 109 Treasury stock purchased — — — — (605) (3,072) — — (605) Treasury stock retirement (28) (28,000) — (2,640) 2,668 28,000 — — — Balance as of March 31, 2021 $ 131 130,741 $ 1,190 $ 1,086 $ (1,111) (6,382) $ (553) $ 195 $ 938 (1) As a result of adopting ASU No. 2016-02, “Leases (Topic 842),” on July 1, 2019, the Company recorded a cumulative effect of initially applying the new guidance as an adjustment to the fiscal year 2020 opening balance of Retained earnings. 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. The Company has two stock repurchase programs: an open-market purchase program with an authorized aggregate purchase amount of up to $2,000, which has no expiration date, and a program to offset the anticipated impact of dilution related to stock-based awards (the Evergreen Program), which has no authorization limit on the dollar amount and no expiration date. Stock repurchases under the two stock repurchase programs were as follows for the periods indicated: Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Amount Shares Amount Shares Amount Shares Amount Shares Open-market purchase program $ 200 1,088 $ — — $ 200 1,088 $ 85 577 Evergreen Program 105 560 30 184 405 1,984 134 847 Total stock repurchases $ 305 1,648 $ 30 184 $ 605 3,072 $ 219 1,424 Changes in Accumulated other comprehensive net (loss) income attributable to Clorox by component were as follows for the periods indicated: Three Months Ended March 31 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of December 31, 2019 $ (421) $ (17) $ (163) $ (601) Other comprehensive (loss) income before reclassifications (49) (9) — (58) Amounts reclassified from Accumulated other comprehensive net (loss) income — 2 2 4 Income tax benefit (expense) (2) 2 (1) (1) Net current period other comprehensive (loss) income (51) (5) 1 (55) Balance as of March 31, 2020 $ (472) $ (22) $ (162) $ (656) Balance as of December 31, 2020 $ (403) $ (3) $ (169) $ (575) Other comprehensive (loss) income before reclassifications (6) 33 — 27 Amounts reclassified from Accumulated other comprehensive net (loss) income — 2 3 5 Income tax benefit (expense), and other (1) (8) (1) (10) Net current period other comprehensive (loss) income (7) 27 2 22 Balance as of March 31, 2021 $ (410) $ 24 $ (167) $ (553) Nine Months Ended March 31 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of June 30, 2019 $ (414) $ (23) $ (165) $ (602) Other comprehensive (loss) income before reclassifications (55) (6) — (61) Amounts reclassified from Accumulated other comprehensive net (loss) income — 6 5 11 Income tax benefit (expense) (3) 1 (2) (4) Net current period other comprehensive (loss) income (58) 1 3 (54) Balance as of March 31, 2020 $ (472) $ (22) $ (162) $ (656) Balance as of June 30, 2020 $ (450) $ (18) $ (172) $ (640) Other comprehensive (loss) income before reclassifications 38 47 — 85 Amounts reclassified from Accumulated other comprehensive net (loss) income — 7 7 14 Income tax benefit (expense), and other 2 (12) (2) (12) Net current period other comprehensive (loss) income 40 42 5 87 Balance as of March 31, 2021 $ (410) $ 24 $ (167) $ (553) 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 no amounts associated with these loans reclassified from Accumulated other comprehensive net (loss) income for the periods presented. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [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 Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Service cost $ — $ — $ — $ — Interest cost 4 5 11 15 Expected return on plan assets (1) (4) (5) (11) (14) Amortization of unrecognized items 3 3 8 7 Total $ 3 $ 3 $ 8 $ 8 (1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2021 net periodic benefit cost is 3.1%. The net periodic benefit cost for the Company’s retirement health care plans was $0 for both the three months ended March 31, 2021 and 2020, and $(1) for both the nine months ended March 31, 2021 and 2020. During the three months ended March 31, 2021 and 2020, the Company made $6 and $7 in contributions to its domestic retirement income plans, respectively. During the nine months ended March 31, 2021 and 2020, the Company made $10 in contributions to its domestic retirement income plans. Net periodic benefit costs are reflected in Other (income) expense, net. |
OTHER CONTINGENCIES AND GUARANT
OTHER CONTINGENCIES AND GUARANTEES | 9 Months Ended |
Mar. 31, 2021 | |
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 $27 and $28 as of March 31, 2021 and June 30, 2020, respectively, for its share of aggregate future remediation costs related to these matters. One matter, which accounted for $14 of the recorded liability as of March 31, 2021 and June 30, 2020, 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 $10 of the recorded liability, as of March 31, 2021 and June 30, 2020. 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. 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, product liability, patents and trademarks, advertising, labor and employment, environmental, health and safety and other matters. With respect to these proceedings, claims and other loss contingencies, while considerable uncertainty exists, in the opinion of management at this time, the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, either individually or in the aggregate, on the Company’s condensed consolidated financial statements taken as a whole. Guarantees In conjunction with divestitures and other transactions, the Company may provide typical indemnifications (e.g., indemnifications for representations and warranties and retention of previously existing environmental, tax and employee liabilities) that have terms that vary in duration and in the potential amount of the total obligation and, in many circumstances, are not explicitly defined. The Company has not made, nor does it believe that it is probable that it will make, any material payments relating to its indemnifications, and believes that any reasonably possible payments would not have a material adverse effect, either individually or in the aggregate, on the Company’s condensed consolidated financial statements taken as a whole. The Company had not recorded any material liabilities on the aforementioned guarantees as of March 31, 2021 and June 30, 2020. As of March 31, 2021, the Company was party to a letter of credit of $11, related to one of its insurance carriers, of which $0 had been drawn upon. |
SEGMENT RESULTS
SEGMENT RESULTS | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT RESULTS | SEGMENT RESULTS The Company operates through SBUs that are aggregated into four reportable segments based on the economics and nature of the products sold: Health and Wellness, Household, Lifestyle and International. Prior periods presented have been recast to reflect the reportable segment changes effective in the fourth quarter of fiscal year 2020. 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, operating lease right-of-use assets, other long-term assets and deferred taxes. The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated Net sales and Earnings before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate. Net sales Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Health and Wellness $ 680 $ 736 $ 2,310 $ 1,944 Household 510 480 1,421 1,183 Lifestyle 293 294 928 856 International 298 273 880 755 Corporate — — — — Total $ 1,781 $ 1,783 $ 5,539 $ 4,738 Earnings (losses) before income taxes Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Health and Wellness (1) $ (183) $ 210 $ 315 $ 514 Household 97 114 266 190 Lifestyle 68 80 259 242 International 30 36 184 106 Corporate (71) (143) (225) (262) Total $ (59) $ 297 $ 799 $ 790 (1) The earnings (losses) before income taxes for the Health and Wellness segment include a $329 non-cash goodwill, trademark and other asset impairment charge for the VMS SBU for the three and nine months ended March 31, 2021. All intersegment sales are eliminated and are not included in the Company’s reportable segments’ net sales. Net sales to the Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, as a percentage of consolidated net sales, were 24% for each of the three and nine months ended March 31, 2021, respectively, and 25% for each of the three and nine months ended March 31, 2020, respectively. The following table provides Net sales as a percentage of the Company’s consolidated net sales for the Company’s SBUs and for the periods indicated: Net sales Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Cleaning 29 % 32 % 30 % 31 % Professional Products 5 % 6 % 7 % 6 % Vitamins, Minerals and Supplements 4 % 4 % 4 % 4 % Health and Wellness 38 % 42 % 41 % 41 % Bags and Wraps 11 % 11 % 11 % 12 % Cat Litter 7 % 7 % 7 % 7 % Grilling 11 % 9 % 8 % 6 % Household 29 % 27 % 26 % 25 % Food Products 10 % 8 % 9 % 9 % Natural Personal Care 3 % 4 % 4 % 5 % Water Filtration 3 % 4 % 4 % 4 % Lifestyle 16 % 16 % 17 % 18 % International 17 % 15 % 16 % 16 % Total 100 % 100 % 100 % 100 % |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements for the three and nine months ended March 31, 2021 and 2020, 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 controlled 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, 2020, 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 December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, “Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes,” which improves consistency in the application of accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and by clarifying and amending existing guidance. The standard will be effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The amendments that are related to changes in ownership of foreign equity method investments or foreign subsidiaries are to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments that are related to franchise taxes that are partially based on income are to be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments under this ASU are to be applied on a prospective basis. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. Recently Adopted Accounting Standards |
Fair Value Measurement | 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 March 31, 2021 and June 30, 2020, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. |
Segment Results | The Company operates through SBUs that are aggregated into four reportable segments based on the economics and nature of the products sold: Health and Wellness, Household, Lifestyle and International. Prior periods presented have been recast to reflect the reportable segment changes effective in the fourth quarter of fiscal year 2020. 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, operating lease right-of-use assets, other long-term assets and deferred taxes. |
BUSINESS ACQUIRED (Tables)
BUSINESS ACQUIRED (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the final purchase price allocation for the fair value of the joint venture’s assets acquired and liabilities assumed and the related deferred income taxes as of the acquisition date. The fair value of the assets acquired and liabilities assumed reflects the final insignificant measurement period adjustments related to goodwill, deferred income taxes and income taxes payable. The definite-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 is 9 years. Joint Venture Goodwill $ 208 Reacquired rights (included in Other intangible assets, net) 138 Property, plant and equipment 46 Customer relationships (included in Other intangible assets, net) 10 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 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net, consisted of the following as of: 3/31/2021 6/30/2020 Finished goods $ 522 $ 340 Raw materials and packaging 188 140 Work in process 10 7 LIFO allowances (32) (33) Total $ 688 $ 454 |
GOODWILL, TRADEMARK AND OTHER_2
GOODWILL, TRADEMARK AND OTHER ASSETS IMPAIRMENTS (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Impaired Intangible Assets | Based on the outcome of these assessments, the following pre-tax impairment charges were recorded: Impairment Charge Goodwill $ 228 Trademarks, net 86 Other intangible assets, net 14 Property, plant and equipment, net 1 Total $ 329 |
Schedule of Goodwill | Changes in the carrying amount of Goodwill as of March 31, 2021 from June 30, 2020, were as follows: Goodwill Health and Wellness Household Lifestyle International Total Balance as of June 30, 2020 $ 857 $ 85 $ 244 $ 391 $ 1,577 Acquisitions — — — 212 212 Translation adjustments and other — — — 4 4 Balance as of September 30, 2020 857 85 244 607 1,793 Translation adjustments and other (1) — — — 10 10 Balance as of December 31, 2020 857 85 244 617 1,803 Goodwill impairment (228) — — — (228) Translation adjustments and other — — — (1) (1) Balance as of March 31, 2021 $ 629 $ 85 $ 244 $ 616 $ 1,574 (1) Includes $(4) purchase price allocation adjustment related to the Saudi joint venture acquisition. Refer to Note 2 of the Notes to Condensed Consolidated Financial Statements. |
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | The following table summarizes the carrying amount of trademarks and other intangible assets as of March 31, 2021 and as of June 30, 2020: As of March 31, 2021 As of June 30, 2020 Gross carrying amount Accumulated amortization / Impairments Net carrying amount Gross carrying amount Accumulated amortization / Impairments Net carrying amount Trademarks not subject to amortization $ 769 $ 86 $ 683 $ 766 $ — $ 766 Trademarks subject to amortization 47 36 11 47 28 19 Other intangible assets 583 337 246 424 315 109 Total $ 1,399 $ 459 $ 940 $ 1,237 $ 343 $ 894 |
Schedule of Finite-Lived Intangible Assets | The following table summarizes the carrying amount of trademarks and other intangible assets as of March 31, 2021 and as of June 30, 2020: As of March 31, 2021 As of June 30, 2020 Gross carrying amount Accumulated amortization / Impairments Net carrying amount Gross carrying amount Accumulated amortization / Impairments Net carrying amount Trademarks not subject to amortization $ 769 $ 86 $ 683 $ 766 $ — $ 766 Trademarks subject to amortization 47 36 11 47 28 19 Other intangible assets 583 337 246 424 315 109 Total $ 1,399 $ 459 $ 940 $ 1,237 $ 343 $ 894 |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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: Gains (losses) recognized in Other comprehensive (loss) income Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Commodity purchase derivative contracts $ 5 $ (11) $ 12 $ (8) Foreign exchange derivative contracts 2 2 (1) 2 Interest rate derivative contracts 26 — 36 — Total $ 33 $ (9) $ 47 $ (6) |
Effects of Derivative Instruments Designated as Hedging Instruments on Net Earnings | 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 Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Commodity purchase derivative contracts Cost of products sold $ — $ — $ (2) $ (1) Foreign exchange derivative contracts Cost of products sold — — — — Interest rate derivative contracts Interest expense (2) (2) (5) (5) Total $ (2) $ (2) $ (7) $ (6) |
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: 3/31/2021 6/30/2020 Balance Sheet Fair Value Carrying Estimated Carrying Estimated Assets Commodity purchase futures contracts Other current assets 1 $ 3 $ 3 $ — $ — Commodity purchase swaps contracts Other current assets 2 2 2 — — Commodity purchase swaps contracts Other assets 2 — — — — Interest rate forward contracts Other assets 2 37 37 1 1 $ 42 $ 42 $ 1 $ 1 Liabilities Commodity purchase futures contracts Accounts payable and accrued liabilities 1 $ — $ — $ 1 $ 1 Commodity purchase swaps contracts Accounts payable and accrued liabilities 2 — — 3 3 Foreign exchange forward contract Accounts payable and accrued liabilities 2 1 1 1 1 $ 1 $ 1 $ 5 $ 5 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: 3/31/2021 6/30/2020 Balance Sheet Fair Value Carrying Estimated Carrying Estimated Assets Investments, including money market funds Cash and cash equivalents (1) 1 $ 213 $ 213 $ 584 $ 584 Time deposits Cash and cash equivalents (1) 2 146 146 165 165 Trust assets for nonqualified deferred compensation plans Other assets 1 131 131 100 100 $ 490 $ 490 $ 849 $ 849 Liabilities Current maturities of long-term debt and Long-term debt Current maturities of long- term debt and Long-term debt (2) 2 2,783 2,944 2,780 3,051 $ 2,783 $ 2,944 $ 2,780 $ 3,051 ____________________ (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) 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 (LOSSES) PER SHA_2
NET EARNINGS (LOSSES) PER SHARE (EPS) (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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 Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Basic 125,610 125,661 126,057 125,641 Dilutive effect of stock options and other — 1,667 1,973 1,595 Diluted 125,610 127,328 128,030 127,236 Antidilutive stock options and other 4,826 — 428 2 |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Comprehensive Income | The following table provides a summary of Comprehensive income (loss) for the periods indicated: Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Net earnings (losses) $ (59) $ 241 $ 619 $ 629 Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments (7) (51) 40 (58) Net unrealized gains (losses) on derivatives 27 (5) 42 1 Pension and postretirement benefit adjustments 2 1 5 3 Total other comprehensive (loss) income, net of tax 22 (55) 87 (54) Comprehensive income (loss) (37) 186 706 575 Less: Total comprehensive income attributable to noncontrolling interests 2 — 6 — Total comprehensive income (loss) attributable to Clorox $ (39) $ 186 $ 700 $ 575 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in the components of Stockholders’ equity were as follows for the periods indicated: Three Months Ended March 31 (Dollars in millions except per share data; shares in thousands) Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Non-controlling interests Total Stockholders ’ Equity Amount Shares Amount Shares Balance as of December 31, 2019 $ 159 158,741 $ 1,062 $ 3,292 $ (3,357) (33,717) $ (601) $ — $ 555 Net earnings — — — 241 — — — — 241 Other comprehensive (loss) income — — — — — — (55) — (55) Dividends to Clorox stockholders ($1.06 per share declared) — — — (135) — — — — (135) Stock-based compensation — — 18 — — — — — 18 Other employee stock plan activities — — 31 — 70 1,083 — — 101 Treasury stock purchased — — — — (30) (184) — — (30) Balance as of March 31, 2020 $ 159 158,741 $ 1,111 $ 3,398 $ (3,317) (32,818) $ (656) $ — $ 695 Balance as of December 31, 2020 $ 131 130,741 $ 1,176 $ 1,302 $ (850) (5,017) $ (575) $ 196 $ 1,380 Net earnings (losses) — — — (61) — — — 2 (59) Other comprehensive (loss) income — — — — — — 22 — 22 Dividends to Clorox stockholders ($1.11 per share declared) — — — (139) — — — — (139) Dividends to non-controlling interests — — — — — — — (3) (3) Stock-based compensation — — 17 — — — — — 17 Other employee stock plan activities — — (3) (16) 44 283 — — 25 Treasury stock purchased — — — — (305) (1,648) — — (305) Balance as of March 31, 2021 $ 131 130,741 $ 1,190 $ 1,086 $ (1,111) (6,382) $ (553) $ 195 $ 938 Nine Months Ended March 31 (Dollars in millions except per share data; shares in thousands) Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Accumulated Non-controlling interests Total Stockholders ’ Equity Amount Shares Amount Shares Balance as of June 30, 2019 $ 159 158,741 $ 1,046 $ 3,150 $ (3,194) (33,055) $ (602) $ — $ 559 Cumulative effect of accounting changes, net of tax (1) — — — 22 — — — — 22 Net earnings — — — 629 — — — — 629 Other comprehensive (loss) income — — — — — — (54) — (54) Dividends to Clorox stockholders ($3.18 per share declared) — — — (402) — — — — (402) Stock-based compensation — — 37 — — — — — 37 Other employee stock plan activities — — 28 (1) 96 1,661 — — 123 Treasury stock purchased — — — — (219) (1,424) — — (219) Balance as of March 31, 2020 $ 159 158,741 $ 1,111 $ 3,398 $ (3,317) (32,818) $ (656) $ — $ 695 Balance as of June 30, 2020 $ 159 158,741 $ 1,137 $ 3,567 $ (3,315) (32,543) $ (640) $ — $ 908 Net earnings — — — 613 — — — 6 619 Other comprehensive (loss) income — — — — — — 87 — 87 Dividends to Clorox stockholders ($3.33 per share declared) — — — (421) — — — — (421) Dividends to noncontrolling interests — — — — — — — (9) (9) Business combinations including purchase accounting adjustments — — — — — — — 198 198 Stock-based compensation — — 52 — — — — — 52 Other employee stock plan activities — — 1 (33) 141 1,233 — — 109 Treasury stock purchased — — — — (605) (3,072) — — (605) Treasury stock retirement (28) (28,000) — (2,640) 2,668 28,000 — — — Balance as of March 31, 2021 $ 131 130,741 $ 1,190 $ 1,086 $ (1,111) (6,382) $ (553) $ 195 $ 938 |
Schedule of Share Repurchases Under Authorized Programs | Stock repurchases under the two stock repurchase programs were as follows for the periods indicated: Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Amount Shares Amount Shares Amount Shares Amount Shares Open-market purchase program $ 200 1,088 $ — — $ 200 1,088 $ 85 577 Evergreen Program 105 560 30 184 405 1,984 134 847 Total stock repurchases $ 305 1,648 $ 30 184 $ 605 3,072 $ 219 1,424 |
Schedule of Changes in Accumulated Other Comprehensive Net (Losses) Income | Changes in Accumulated other comprehensive net (loss) income attributable to Clorox by component were as follows for the periods indicated: Three Months Ended March 31 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of December 31, 2019 $ (421) $ (17) $ (163) $ (601) Other comprehensive (loss) income before reclassifications (49) (9) — (58) Amounts reclassified from Accumulated other comprehensive net (loss) income — 2 2 4 Income tax benefit (expense) (2) 2 (1) (1) Net current period other comprehensive (loss) income (51) (5) 1 (55) Balance as of March 31, 2020 $ (472) $ (22) $ (162) $ (656) Balance as of December 31, 2020 $ (403) $ (3) $ (169) $ (575) Other comprehensive (loss) income before reclassifications (6) 33 — 27 Amounts reclassified from Accumulated other comprehensive net (loss) income — 2 3 5 Income tax benefit (expense), and other (1) (8) (1) (10) Net current period other comprehensive (loss) income (7) 27 2 22 Balance as of March 31, 2021 $ (410) $ 24 $ (167) $ (553) Nine Months Ended March 31 Foreign currency translation adjustments Net unrealized gains (losses) on derivatives Pension and postretirement benefit adjustments Accumulated other comprehensive net (loss) income Balance as of June 30, 2019 $ (414) $ (23) $ (165) $ (602) Other comprehensive (loss) income before reclassifications (55) (6) — (61) Amounts reclassified from Accumulated other comprehensive net (loss) income — 6 5 11 Income tax benefit (expense) (3) 1 (2) (4) Net current period other comprehensive (loss) income (58) 1 3 (54) Balance as of March 31, 2020 $ (472) $ (22) $ (162) $ (656) Balance as of June 30, 2020 $ (450) $ (18) $ (172) $ (640) Other comprehensive (loss) income before reclassifications 38 47 — 85 Amounts reclassified from Accumulated other comprehensive net (loss) income — 7 7 14 Income tax benefit (expense), and other 2 (12) (2) (12) Net current period other comprehensive (loss) income 40 42 5 87 Balance as of March 31, 2021 $ (410) $ 24 $ (167) $ (553) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [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 Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Service cost $ — $ — $ — $ — Interest cost 4 5 11 15 Expected return on plan assets (1) (4) (5) (11) (14) Amortization of unrecognized items 3 3 8 7 Total $ 3 $ 3 $ 8 $ 8 (1) The weighted average long-term expected rate of return on plan assets used in computing the fiscal year 2021 net periodic benefit cost is 3.1%. |
SEGMENT RESULTS (Tables)
SEGMENT RESULTS (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Selected Financial Information Relating to the Company's Segments | The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated Net sales and Earnings before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate. Net sales Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Health and Wellness $ 680 $ 736 $ 2,310 $ 1,944 Household 510 480 1,421 1,183 Lifestyle 293 294 928 856 International 298 273 880 755 Corporate — — — — Total $ 1,781 $ 1,783 $ 5,539 $ 4,738 Earnings (losses) before income taxes Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Health and Wellness (1) $ (183) $ 210 $ 315 $ 514 Household 97 114 266 190 Lifestyle 68 80 259 242 International 30 36 184 106 Corporate (71) (143) (225) (262) Total $ (59) $ 297 $ 799 $ 790 (1) The earnings (losses) before income taxes for the Health and Wellness segment include a $329 non-cash goodwill, trademark and other asset impairment charge for the VMS SBU for the three and nine months ended March 31, 2021. The following table provides Net sales as a percentage of the Company’s consolidated net sales for the Company’s SBUs and for the periods indicated: Net sales Three Months Ended Nine Months Ended 3/31/2021 3/31/2020 3/31/2021 3/31/2020 Cleaning 29 % 32 % 30 % 31 % Professional Products 5 % 6 % 7 % 6 % Vitamins, Minerals and Supplements 4 % 4 % 4 % 4 % Health and Wellness 38 % 42 % 41 % 41 % Bags and Wraps 11 % 11 % 11 % 12 % Cat Litter 7 % 7 % 7 % 7 % Grilling 11 % 9 % 8 % 6 % Household 29 % 27 % 26 % 25 % Food Products 10 % 8 % 9 % 9 % Natural Personal Care 3 % 4 % 4 % 5 % Water Filtration 3 % 4 % 4 % 4 % Lifestyle 16 % 16 % 17 % 18 % International 17 % 15 % 16 % 16 % Total 100 % 100 % 100 % 100 % |
BUSINESS ACQUIRED (Narrative) (
BUSINESS ACQUIRED (Narrative) (Details) - USD ($) | Jul. 09, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 |
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Total purchase consideration | $ 111,000,000 | |||||
Cash paid | 100,000,000 | |||||
Loss on settlement | 11,000,000 | |||||
Goodwill | $ 1,574,000,000 | $ 1,803,000,000 | $ 1,574,000,000 | $ 1,793,000,000 | $ 1,577,000,000 | |
Non-recurring, non-cash gain | $ 85,000,000 | |||||
Joint venture net sales | $ 19,000,000 | $ 65,000,000 | ||||
Joint Venture In Kingdom Of Saudi Arabia | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Total purchase consideration | 111,000,000 | |||||
Goodwill | 208,000,000 | |||||
Goodwill deductible for tax purposes | $ 0 | |||||
The weighted-average estimated useful life of intangible assets subject to amortization | 9 years | |||||
Joint Venture In Kingdom Of Saudi Arabia | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Noncontrolling interest, ownership percentage by parent | 51.00% | |||||
Joint Venture In Kingdom Of Saudi Arabia | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Equity method investment, ownership percentage | 30.00% | |||||
Equity method investments | $ 27,000,000 |
BUSINESS ACQUIRED (Fair Value O
BUSINESS ACQUIRED (Fair Value Of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Jul. 09, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 |
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Goodwill | $ 1,574 | $ 1,803 | $ 1,793 | $ 1,577 | |
Total purchase consideration | $ 111 | ||||
Joint Venture In Kingdom Of Saudi Arabia | |||||
Business Combination, Separately Recognized Transactions [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 | ||||
Contractual Rights [Member] | Joint Venture In Kingdom Of Saudi Arabia | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Reacquired rights (included in Other intangible assets, net) | 138 | ||||
Customer relationships (included in Other intangible assets, net) | 138 | ||||
Customer Relationships [Member] | Joint Venture In Kingdom Of Saudi Arabia | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Reacquired rights (included in Other intangible assets, net) | 10 | ||||
Customer relationships (included in Other intangible assets, net) | $ 10 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 522 | $ 340 |
Raw materials and packaging | 188 | 140 |
Work in process | 10 | 7 |
LIFO allowances | (32) | (33) |
Total | $ 688 | $ 454 |
GOODWILL, TRADEMARK AND OTHER_3
GOODWILL, TRADEMARK AND OTHER ASSETS IMPAIRMENTS (Schedule of Impairment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | $ 228 | |||
Property, plant and equipment, net | 1 | |||
Goodwill, trademark and other asset impairments | 329 | $ 0 | $ 329 | $ 0 |
Other Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | 14 | |||
Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 86 |
GOODWILL, TRADEMARK AND OTHER_4
GOODWILL, TRADEMARK AND OTHER ASSETS IMPAIRMENTS (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment, tax benefit | $ (62) | ||||
Amortization of intangible assets | $ 8 | $ 3 | 23 | $ 10 | |
Amortization, remainder of fiscal year | 8 | 8 | |||
Amortization, year one | 32 | 32 | |||
Amortization, year two | 30 | 30 | |||
Amortization, year three | 29 | 29 | |||
Amortization, year four | 28 | 28 | |||
Impaired Trademarks | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Not subject to amortization | 13 | 13 | |||
Trademarks | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Not subject to amortization | $ 683 | $ 683 | $ 766 | ||
Trademarks | Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 16 years |
GOODWILL, TRADEMARK AND OTHER_5
GOODWILL, TRADEMARK AND OTHER ASSETS IMPAIRMENTS (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $ 1,803 | $ 1,793 | $ 1,577 |
Acquisitions | 212 | ||
Translation adjustments and other | (1) | 10 | 4 |
Goodwill impairment | (228) | ||
Goodwill, Ending Balance | 1,574 | 1,803 | 1,793 |
Joint Venture In Kingdom Of Saudi Arabia | |||
Goodwill [Roll Forward] | |||
Translation adjustments and other | (4) | ||
Health and Wellness | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 857 | 857 | 857 |
Acquisitions | 0 | ||
Translation adjustments and other | 0 | 0 | 0 |
Goodwill impairment | (228) | ||
Goodwill, Ending Balance | 629 | 857 | 857 |
Household | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 85 | 85 | 85 |
Acquisitions | 0 | ||
Translation adjustments and other | 0 | 0 | 0 |
Goodwill impairment | 0 | ||
Goodwill, Ending Balance | 85 | 85 | 85 |
Lifestyle | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 244 | 244 | 244 |
Acquisitions | 0 | ||
Translation adjustments and other | 0 | 0 | 0 |
Goodwill impairment | 0 | ||
Goodwill, Ending Balance | 244 | 244 | 244 |
International | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 617 | 607 | 391 |
Acquisitions | 212 | ||
Translation adjustments and other | (1) | 10 | 4 |
Goodwill impairment | 0 | ||
Goodwill, Ending Balance | $ 616 | $ 617 | $ 607 |
GOODWILL, TRADEMARK AND OTHER_6
GOODWILL, TRADEMARK AND OTHER ASSETS IMPAIRMENTS (Intangible Assets) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Subject to amortization, accumulated amortization | $ 459 | $ 343 |
Intangible assets, gross | 1,399 | 1,237 |
Intangible assets, net | 940 | 894 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Not subject to amortization, before impairment | 769 | |
Not subject to amortization | 683 | 766 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset impairment | 86 | 0 |
Subject to amortization, gross | 47 | 47 |
Subject to amortization, accumulated amortization | 36 | 28 |
Subject to amortization, net | 11 | 19 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subject to amortization, gross | 583 | 424 |
Subject to amortization, accumulated amortization | 337 | 315 |
Subject to amortization, net | $ 246 | $ 109 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Derivative [Line Items] | |||||
Maximum duration, foreign exchange contracts | 2 years | ||||
Estimated amount of the existing net gain (loss) to be reclassified into earnings in the next 12 months | $ 2,000,000 | ||||
Derivative instruments subject to contractually defined counterparty liability position limits | $ 1,000,000 | 1,000,000 | $ 3,000,000 | ||
Goodwill, trademark and other asset impairments | 329,000,000 | $ 0 | 329,000,000 | $ 0 | |
Goodwill impairment | 228,000,000 | ||||
Trademarks | |||||
Derivative [Line Items] | |||||
Impairment of intangible assets | 86,000,000 | ||||
Other Assets | |||||
Derivative [Line Items] | |||||
Goodwill, trademark and other asset impairments | 15,000,000 | ||||
Health and Wellness | |||||
Derivative [Line Items] | |||||
Goodwill impairment | 228,000,000 | ||||
Interest Rate Contract | |||||
Derivative [Line Items] | |||||
Notional amount | 300,000,000 | $ 300,000,000 | 225,000,000 | ||
Maximum duration, interest rate contracts | 3 years | ||||
Purchases of Inventory | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Notional amount | 68,000,000 | $ 68,000,000 | 70,000,000 | ||
Total Commodity Purchase Derivative Contracts | |||||
Derivative [Line Items] | |||||
Maximum duration, commodity contracts | 2 years | ||||
Notional amount | 24,000,000 | $ 24,000,000 | 27,000,000 | ||
Soybean Oil Futures | |||||
Derivative [Line Items] | |||||
Notional amount | 15,000,000 | 15,000,000 | 14,000,000 | ||
Soybean Oil Futures | Commodity Contract | |||||
Derivative [Line Items] | |||||
Cash margin balances amount | 0 | 0 | 2,000,000 | ||
Jet Fuel Swaps | |||||
Derivative [Line Items] | |||||
Notional amount | $ 9,000,000 | $ 9,000,000 | $ 13,000,000 |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of the Effects of Derivative Instruments Designated as Hedging Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | $ 33 | $ (9) | $ 47 | $ (6) |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | (2) | (2) | (7) | (6) |
Commodity Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | 5 | (11) | 12 | (8) |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 0 | 0 | (2) | (1) |
Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | 2 | 2 | (1) | 2 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | 0 | 0 | 0 | 0 |
Interest Rate Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Other comprehensive (loss) income | 26 | 0 | 36 | 0 |
Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings | $ (2) | $ (2) | $ (5) | $ (5) |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities for Fair Value Disclosure) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Jun. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 492 | $ 871 |
Total assets | 6,441 | 6,213 |
Total liabilities | 5,503 | 5,305 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 42 | 1 |
Derivative liabilities | 1 | 5 |
Total assets | 490 | 849 |
Total liabilities | 2,783 | 2,780 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 42 | 1 |
Derivative liabilities | 1 | 5 |
Total other assets in the fair value hierarchy | 490 | 849 |
Total other liabilities in the fair value hierarchy | 2,944 | 3,051 |
Other Current Assets | Fair Value, Inputs, Level 1 | Reported Value Measurement | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3 | 0 |
Other Current Assets | Fair Value, Inputs, Level 1 | Estimate of Fair Value Measurement | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3 | 0 |
Other Current Assets | Fair Value, Inputs, Level 2 | Reported Value Measurement | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 0 |
Other Current Assets | Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 0 |
Other Assets | Fair Value, Inputs, Level 2 | Reported Value Measurement | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Other Assets | Fair Value, Inputs, Level 2 | Reported Value Measurement | Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 37 | 1 |
Other Assets | Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Other Assets | Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 37 | 1 |
Other Assets | Trust Assets for nonqualified deferred compensation plans | Fair Value, Inputs, Level 1 | Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trust assets for nonqualified deferred compensation plans | 131 | 100 |
Other Assets | Trust Assets for nonqualified deferred compensation plans | Fair Value, Inputs, Level 1 | Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trust assets for nonqualified deferred compensation plans | 131 | 100 |
Accounts Payable and Accrued Liabilities | Fair Value, Inputs, Level 1 | Reported Value Measurement | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 1 |
Accounts Payable and Accrued Liabilities | Fair Value, Inputs, Level 1 | Estimate of Fair Value Measurement | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 1 |
Accounts Payable and Accrued Liabilities | Fair Value, Inputs, Level 2 | Reported Value Measurement | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 3 |
Accounts Payable and Accrued Liabilities | Fair Value, Inputs, Level 2 | Reported Value Measurement | Foreign Exchange Forward Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1 | 1 |
Accounts Payable and Accrued Liabilities | Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | Commodity Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 3 |
Accounts Payable and Accrued Liabilities | Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | Foreign Exchange Forward Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 1 | 1 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | Reported Value Measurement | Investments, including money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 213 | 584 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | Estimate of Fair Value Measurement | Investments, including money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 213 | 584 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 | Reported Value Measurement | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 146 | 165 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 146 | 165 |
Current maturities of long-term debt and Long-term debt | Fair Value, Inputs, Level 2 | Reported Value Measurement | Long-term Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current maturities of long-term debt and Long-term debt | 2,783 | 2,780 |
Current maturities of long-term debt and Long-term debt | Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | Long-term Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current maturities of long-term debt and Long-term debt | $ 2,944 | $ 3,051 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate on earnings from continuing operations | (1.40%) | 18.90% | 22.50% | 20.40% |
NET EARNINGS (LOSSES) PER SHA_3
NET EARNINGS (LOSSES) PER SHARE (EPS) (Schedule of Weighted Average Number of Shares) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Basic (in shares) | 125,610 | 125,661 | 126,057 | 125,641 |
Dilutive effect of stock options and other (in shares) | 0 | 1,667 | 1,973 | 1,595 |
Diluted (in shares) | 125,610 | 127,328 | 128,030 | 127,236 |
Antidilutive stock options and other (in shares) | 4,826 | 0 | 428 | 2 |
NET EARNINGS (LOSSES) PER SHA_4
NET EARNINGS (LOSSES) PER SHARE (EPS) (Dividends Per Share Declared) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Dividends declared per share (in dollars per share) | $ 1.11 | $ 1.06 | $ 3.33 | $ 3.18 |
COMPREHENSIVE INCOME (LOSS) (Sc
COMPREHENSIVE INCOME (LOSS) (Schedule of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | ||||
Net earnings | $ (59) | $ 241 | $ 619 | $ 629 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (7) | (51) | 40 | (58) |
Net unrealized gains (losses) on derivatives | 27 | (5) | 42 | 1 |
Pension and postretirement benefit adjustments | 2 | 1 | 5 | 3 |
Total other comprehensive (loss) income, net of tax | 22 | (55) | 87 | (54) |
Comprehensive income (loss) | (37) | 186 | 706 | 575 |
Less: Total comprehensive income attributable to noncontrolling interests | 2 | 0 | 6 | 0 |
Total comprehensive income (loss) attributable to Clorox | $ (39) | $ 186 | $ 700 | $ 575 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Equity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Nov. 18, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Class of Stock [Line Items] | |||||
Dividends declared per share (in dollars per share) | $ 1.11 | $ 1.06 | $ 3.33 | $ 3.18 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning | $ 1,380 | $ 555 | $ 908 | $ 559 | |
Net earnings (losses) | (59) | 241 | 619 | 629 | |
Other comprehensive (loss) income | 22 | (55) | 87 | (54) | |
Dividends | (139) | (135) | (421) | (402) | |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (3) | (9) | |||
Business combinations including purchase accounting adjustments | 198 | ||||
Stock-based compensation | 17 | 18 | 52 | 37 | |
Other employee stock plan activities | 25 | 101 | 109 | 123 | |
Treasury stock purchased | $ (305) | $ (30) | $ (605) | $ (219) | |
Treasury stock purchased (in shares) | (1,648) | (184) | (3,072) | (1,424) | |
Treasury stock retirement | $ 0 | ||||
Balance, ending | $ 938 | $ 695 | 938 | $ 695 | |
Cumulative Effect of Accounting Changes, Net of Tax [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning | 22 | ||||
Common Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning | $ 131 | $ 159 | $ 159 | $ 159 | |
Balance, beginning (in shares) | 130,741 | 158,741 | 158,741 | 158,741 | |
Treasury stock retirement | $ (28) | ||||
Treasury stock retirement (in shares) | 28,000 | ||||
Balance, ending | $ 131 | $ 159 | $ 131 | $ 159 | |
Balance, ending (in shares) | 130,741 | 158,741 | 130,741 | 158,741 | |
Additional Paid-in Capital [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning | $ 1,176 | $ 1,062 | $ 1,137 | $ 1,046 | |
Stock-based compensation | 17 | 18 | 52 | 37 | |
Other employee stock plan activities | (3) | 31 | 1 | 28 | |
Balance, ending | 1,190 | 1,111 | 1,190 | 1,111 | |
Retained Earnings [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning | 1,302 | 3,292 | 3,567 | 3,150 | |
Net earnings (losses) | (61) | 241 | 613 | 629 | |
Dividends | (139) | (135) | (421) | (402) | |
Other employee stock plan activities | (16) | 0 | (33) | (1) | |
Treasury stock retirement | (2,640) | ||||
Balance, ending | 1,086 | 3,398 | 1,086 | 3,398 | |
Retained Earnings [Member] | Cumulative Effect of Accounting Changes, Net of Tax [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning | 22 | ||||
Treasury Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning | $ (850) | $ (3,357) | $ (3,315) | $ (3,194) | |
Balance, beginning (in shares) | 5,017 | 33,717 | 32,543 | 33,055 | |
Other employee stock plan activities | $ 44 | $ 70 | $ 141 | $ 96 | |
Other employee stock plan activities (in shares) | 283 | 1,083 | 1,233 | 1,661 | |
Treasury stock purchased | $ (305) | $ (30) | $ (605) | $ (219) | |
Treasury stock purchased (in shares) | (1,648) | (184) | (3,072) | (1,424) | |
Treasury stock retirement | $ 2,668 | ||||
Treasury stock retirement (in shares) | 28,000 | 28,000 | |||
Balance, ending | $ (1,111) | $ (3,317) | $ (1,111) | $ (3,317) | |
Balance, ending (in shares) | 6,382 | 32,818 | 6,382 | 32,818 | |
Accumulated other comprehensive net (loss) income [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning | $ (575) | $ (601) | $ (640) | $ (602) | |
Other comprehensive (loss) income | 22 | (55) | 87 | (54) | |
Balance, ending | (553) | (656) | (553) | (656) | |
Noncontrolling Interest [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning | 196 | 0 | 0 | 0 | |
Net earnings (losses) | 2 | 6 | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (3) | (9) | |||
Business combinations including purchase accounting adjustments | 198 | ||||
Treasury stock retirement | 0 | ||||
Balance, ending | $ 195 | $ 0 | $ 195 | $ 0 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) shares in Thousands | Nov. 18, 2020shares | Mar. 31, 2021USD ($)repurchaseProgram | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)repurchaseProgramshares | Mar. 31, 2020USD ($) |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Number of repurchase programs | repurchaseProgram | 2 | 2 | |||
Amounts reclassified from accumulated other comprehensive net (loss) income | $ (5,000,000) | $ (4,000,000) | $ (14,000,000) | $ (11,000,000) | |
Long-Term Inter-Company Loans [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Amounts reclassified from accumulated other comprehensive net (loss) income | 0 | $ 0 | $ 0 | $ 0 | |
Treasury Stock [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Treasury stock retired | shares | 28,000 | 28,000 | |||
$2 Billion Open-Market Purchase Program [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Stock repurchase program, authorized amount | 2,000,000,000 | $ 2,000,000,000 | |||
Evergreen Program [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Authorization limit | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY (Share Rep
STOCKHOLDERS' EQUITY (Share Repurchase Programs) (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share Repurchase Programs [Line Items] | ||||
Value of shares repurchased | $ 305 | $ 30 | $ 605 | $ 219 |
Shares repurchased (in shares) | 1,648 | 184 | 3,072 | 1,424 |
$2 Billion Open-Market Purchase Program [Member] | ||||
Share Repurchase Programs [Line Items] | ||||
Value of shares repurchased | $ 200 | $ 0 | $ 200 | $ 85 |
Shares repurchased (in shares) | 1,088 | 0 | 1,088 | 577 |
Evergreen Program [Member] | ||||
Share Repurchase Programs [Line Items] | ||||
Value of shares repurchased | $ 105 | $ 30 | $ 405 | $ 134 |
Shares repurchased (in shares) | 560 | 184 | 1,984 | 847 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of Changes in Accumulated Other Comprehensive Net (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | $ 908 | |||
Other comprehensive (loss) income before reclassifications | $ 27 | $ (58) | 85 | $ (61) |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 5 | 4 | 14 | 11 |
Income tax benefit (expense) | (10) | (1) | (12) | (4) |
Net current period other comprehensive (loss) income | 22 | (55) | 87 | (54) |
Balance, ending | 743 | 743 | ||
Foreign currency translation adjustments [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | (403) | (421) | (450) | (414) |
Other comprehensive (loss) income before reclassifications | (6) | (49) | 38 | (55) |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 0 | 0 | 0 | 0 |
Income tax benefit (expense) | (1) | (2) | 2 | (3) |
Net current period other comprehensive (loss) income | (7) | (51) | 40 | (58) |
Balance, ending | (410) | (472) | (410) | (472) |
Net unrealized gains (losses) on derivatives [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | (3) | (17) | (18) | (23) |
Other comprehensive (loss) income before reclassifications | 33 | (9) | 47 | (6) |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 2 | 2 | 7 | 6 |
Income tax benefit (expense) | (8) | 2 | (12) | 1 |
Net current period other comprehensive (loss) income | 27 | (5) | 42 | 1 |
Balance, ending | 24 | (22) | 24 | (22) |
Pension and postretirement benefit adjustments [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | (169) | (163) | (172) | (165) |
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from Accumulated other comprehensive net (loss) income | 3 | 2 | 7 | 5 |
Income tax benefit (expense) | (1) | (1) | (2) | (2) |
Net current period other comprehensive (loss) income | 2 | 1 | 5 | 3 |
Balance, ending | (167) | (162) | (167) | (162) |
Accumulated other comprehensive net (loss) income [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning | (575) | (601) | (640) | (602) |
Balance, ending | $ (553) | $ (656) | $ (553) | $ (656) |
EMPLOYEE BENEFIT PLANS (Compone
EMPLOYEE BENEFIT PLANS (Components of the Net Cost of Retirement Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total | $ 0 | $ 0 | $ (1) | $ (1) |
Weighted average long-term expected rate or return on plan assets | 3.10% | |||
Other Postretirement Benefits Plan [Member] | Retirement Income Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | $ 0 | 0 |
Interest cost | 4 | 5 | 11 | 15 |
Expected return on plan assets | (4) | (5) | (11) | (14) |
Amortization of unrecognized items | 3 | 3 | 8 | 7 |
Total | $ 3 | $ 3 | $ 8 | $ 8 |
EMPLOYEE BENEFIT PLANS (Narrati
EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost (benefit) | $ 0 | $ 0 | $ (1) | $ (1) |
Retirement Income Plans [Member] | UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discretionary contributions | $ 6 | $ 7 | $ 10 | $ 10 |
OTHER CONTINGENCIES AND GUARA_2
OTHER CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2017 | |
Loss Contingencies [Line Items] | |||
Liability for aggregate future remediation costs | $ 27 | $ 28 | |
Letter of credit | 11 | ||
Letter of credit, amount outstanding | 0 | ||
Alameda County, California Matter [Member] | |||
Loss Contingencies [Line Items] | |||
Liability for aggregate future remediation costs | $ 14 | 14 | $ 14 |
Remediation period | 30 years | ||
Maximum undiscounted costs | $ 28 | ||
Dickinson County, Michigan Matter [Member] | |||
Loss Contingencies [Line Items] | |||
Liability for aggregate future remediation costs | $ 10 | $ 10 | |
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) - reportableSegment | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Concentration Risk [Line Items] | ||||
Number of reportable segments | 4 | |||
Revenue from Contract with Customer [Member] | Customer Concentration Risk [Member] | Walmart Stores, Inc. [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration percentage | 24.00% | 25.00% | 24.00% | 25.00% |
SEGMENT RESULTS (Selected Finan
SEGMENT RESULTS (Selected Financial Information Relating To Company's Segments ) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,781 | $ 1,783 | $ 5,539 | $ 4,738 |
Earnings (losses) before income taxes | (59) | $ 297 | $ 799 | $ 790 |
Goodwill impairment | $ 228 | |||
Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Health and Wellness | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment | $ 228 | |||
Health and Wellness | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 38.00% | 42.00% | 41.00% | 41.00% |
Health and Wellness | Cleaning [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 29.00% | 32.00% | 30.00% | 31.00% |
Health and Wellness | Professional Products [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 5.00% | 6.00% | 7.00% | 6.00% |
Health and Wellness | Vitamins, Minerals and Supplements [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 4.00% | 4.00% | 4.00% | 4.00% |
Household | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment | $ 0 | |||
Household | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 29.00% | 27.00% | 26.00% | 25.00% |
Household | Bags and Wraps [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 11.00% | 11.00% | 11.00% | 12.00% |
Household | Cat Litter [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 7.00% | 7.00% | 7.00% | 7.00% |
Household | Grilling [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 11.00% | 9.00% | 8.00% | 6.00% |
Lifestyle | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment | $ 0 | |||
Lifestyle | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 16.00% | 16.00% | 17.00% | 18.00% |
Lifestyle | Food Products [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 10.00% | 8.00% | 9.00% | 9.00% |
Lifestyle | Natural Personal Care [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 3.00% | 4.00% | 4.00% | 5.00% |
Lifestyle | Water Filtration [Member] | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 3.00% | 4.00% | 4.00% | 4.00% |
International | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment | $ 0 | |||
International | Product Concentration Risk [Member] | Revenue from Contract with Customer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration percentage | 17.00% | 15.00% | 16.00% | 16.00% |
Operating Segments [Member] | Health and Wellness | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 680 | $ 736 | $ 2,310 | $ 1,944 |
Earnings (losses) before income taxes | (183) | 210 | 315 | 514 |
Operating Segments [Member] | Household | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 510 | 480 | 1,421 | 1,183 |
Earnings (losses) before income taxes | 97 | 114 | 266 | 190 |
Operating Segments [Member] | Lifestyle | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 293 | 294 | 928 | 856 |
Earnings (losses) before income taxes | 68 | 80 | 259 | 242 |
Operating Segments [Member] | International | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 298 | 273 | 880 | 755 |
Earnings (losses) before income taxes | 30 | 36 | 184 | 106 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Earnings (losses) before income taxes | $ (71) | $ (143) | $ (225) | $ (262) |