UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
FORM 8-K
CURRENT REPORT
 Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 4, 2015
THE CLOROX COMPANY
 (Exact name of registrant as specified in its charter)
___________________

Delaware	1-07151	31-0595760	
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer	
incorporation)		Identification No.)	

1221 Broadway, Oakland, California 94612-1888
 (Address of principal executive offices) (Zip code)
(510) 271-7000
 (Registrant's telephone number, including area code)
Not applicable
 (Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]	 	Written communications pursuant to Rule 425 Under the Securities Act (17 CFR 230.425)	
	   		
[ ]		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
		 	
[ ]		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
		 	
[ ]		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 
Item 2.02 Results of Operations and Financial Condition
On February 4, 2015, The Clorox Company issued a press release announcing its financial results for its second quarter ended December 31, 2014. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
Attached hereto as Exhibit 99.2 and incorporated herein by reference is supplemental financial information.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits

Exhibit	     	Description	
99.1	 	Press Release dated February 4, 2015 of The Clorox Company	
99.2		Supplemental information regarding financial results	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		THE CLOROX COMPANY	

Date:  	February 4, 2015	By:  	   /s/ Laura Stein	
			   Senior Vice President –	
 		 	   General Counsel	

THE CLOROX COMPANY
FORM 8-K
INDEX TO EXHIBITS

     Exhibit	    	   	Description	
99.1	 		Press Release dated February 4, 2015 of The Clorox Company	
99.2			Supplemental information regarding financial results	

PRESS RELEASE		

The Clorox Company Reports 3 Percent Sales Growth and 8 Percent EPS Growth in Q2; Raises Fiscal Year 2015 Outlook for Sales and EPS
OAKLAND, Calif., Feb. 4, 2015 – The Clorox Company (NYSE:CLX) today reported 3 percent sales growth and 8 percent diluted net earnings per share (EPS) growth from continuing operations for its second quarter, which ended Dec. 31, 2014. On a currency-neutral basis, sales grew 6 percent.
“Clorox delivered solid first-half results,” said Chief Executive Officer Benno Dorer. “In the second quarter, we delivered strong volume and sales growth, as well as improved market shares across several categories. Importantly, we continued to invest in incremental demand-building programs, which helped drive our topline results.
“While we anticipate increased impacts from unfavorable foreign exchange and other headwinds in the second half of the fiscal year, we’ll remain focused on executing our 2020 Strategy, with the goal to accelerate profitable growth, including investing in our brands to grow our categories and overall market share.”
All results in this press release are reported on a continuing operations basis, unless otherwise stated. As previously announced, Corporación Clorox de Venezuela S.A. (Clorox Venezuela) discontinued operations effective Sept. 22, 2014. For the current and year-ago quarters, the results from Clorox Venezuela are now included in discontinued operations in the company’s financial statements. Some information in this release is reported on a non-GAAP basis. See “Non-GAAP Financial Information” below and the tables toward the end of this press release for more information and reconciliations of key second-quarter results to the most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the U.S. (GAAP).
Fiscal Second-Quarter Results
Following is a summary of key second-quarter results. All comparisons are with the second quarter of fiscal year 2014, unless otherwise stated.

*	     	97 cents diluted EPS (8% growth)	
		 	
*		4% volume growth	
		 	
*		3% sales growth	

In the second quarter, Clorox delivered earnings from continuing operations of $128 million, or 97 cents diluted EPS, compared to $118 million, or 90 cents diluted EPS, in the year-ago quarter. Second-quarter results reflected higher sales and volume, the benefits of cost savings and price increases, as well as lower selling and administrative expenses. These factors were partially offset by the impact of unfavorable foreign currency exchange rates, incremental demand-building investments, higher commodity costs and increased manufacturing and logistics costs.
In the second quarter, sales grew 3 percent, reflecting double-digit growth in the Professional Products, Natural Personal Care and Bags and Wraps businesses. Total company sales growth was driven primarily by higher volume and the benefit of price increases, partially offset by the impact of 3 percentage points from unfavorable foreign currency exchange rates. Volume for the second quarter increased 4 percent, reflecting shipment growth in all four segments.
The company’s second-quarter gross margin increased 10 basis points to 42.5 percent, reflecting the benefits of cost savings and price increases, which were largely offset by higher commodity costs, primarily from resin, as the benefits related to lower energy costs are not expected to be seen until the second half of the fiscal year. The company’s gross margin was also affected by increased manufacturing and logistics costs, largely due to the impact of continued high inflation in International.
Year-to-date net cash provided by continuing operations was $267 million, compared with $222 million in the year-ago period. Contributing factors to the year-over-year change were lower employee incentive compensation payments and lower tax payments in the current quarter, as well as the initial funding of the company’s non-qualified deferred compensation plan in the year-ago quarter. These factors were partially offset by $25 million in payments to settle interest-rate hedges related to the company’s issuance of long-term debt. In December 2014, the company issued $500 million in senior notes, increasing the company’s quarter-end cash balance, with proceeds subsequently used to pay down a portion of notes that matured on January 15 th of this year.

Key Segment Results
 Following is a summary of key second-quarter results from continuing operations by reportable segment. All comparisons are with the second quarter of fiscal 2014, unless otherwise stated.
Cleaning
(Laundry, Home Care, Professional Products)
● 3% volume growth
 
● 3% sales growth
 
● 6% pretax earnings growth
Volume growth in the segment was driven by double-digit gains in Professional Products, reflecting increases in its cleaning and health care businesses, which were driven, in part, by Ebola and Enterovirus concerns. Volume for Home Care and Laundry was essentially flat. Home Care volume results reflected the distribution loss of Clorox ® disinfecting wipes at a major club customer in calendar year 2014, offset by double-digit Clorox ® disinfecting wipes gains at other retailers and volume growth across multiple Home Care brands. Laundry volume results reflected continued bleach category softness. Home Care and Laundry grew market share in total, with gains across multiple brands. Pretax earnings growth reflected higher sales, as well as the benefits of cost savings and price increases, partially offset by incremental demand-building investments and higher commodity costs.
Household
(Bags and Wraps, Charcoal, Cat Litter)
● 3% volume growth
 
● 5% sales growth
 
● 24% pretax earnings growth
Segment volume growth was driven primarily by gains in Bags and Wraps behind innovation and increased distribution of Glad ® OdorShield ® trash bags. Cat Litter also grew volume behind new Fresh Step ® extreme light weight cat litter. The variance between volume and sales results was due primarily to the benefit of price increases in Bags and Wraps. Pretax earnings growth reflected higher sales and the benefit of cost savings, partially offset by higher commodity costs and incremental demand-building investments.
Lifestyle
(Dressings and Sauces, Water Filtration, Natural Personal Care)
● 5% volume growth
 
● 4% sales growth
 
● 6% pretax earnings growth
Volume results in the segment were driven by strong double-digit gains in Natural Personal Care, largely due to innovation in Burt’s Bees ® lip and face-care products, including continued growth in towelettes. Incremental demand-building programs, including the first-ever television campaign for the Burt’s Bees ® brand, also contributed to Natural Personal Care’s strong sales results. Dressings and Sauces also grew volume primarily from increased merchandising of Hidden Valley ® dry mixes and salad dressings. These results were partially offset by lower shipments in Water Filtration due to increased merchandising of private-label filter products. Volume growth outpaced sales growth primarily due to unfavorable mix. Pretax earnings growth reflected higher sales, lower commodity costs and the benefit of cost savings. These factors were partially offset by higher manufacturing costs and higher advertising spending.
Page 2 of 9

International
(All countries outside of the U.S.)
● 5% volume growth
 
● 2% sales decrease (11% growth, currency-neutral basis)
 
● 27% pretax earnings decrease
The segment’s volume growth reflected gains primarily in Mexico, Canada, Europe and Argentina. Segment sales reflected the impact of unfavorable foreign currency exchange rates across most countries, partially offset by the benefit of price increases. On a currency-neutral basis, segment sales grew 11 percent. Pretax earnings declined $9 million primarily due to the impact of unfavorable foreign currency exchange rates and higher selling and administrative expenses, as well as increased manufacturing and logistics costs and higher commodity costs, largely driven by continued high inflation. These factors were partially offset by higher volume and the benefits of price increases and cost savings.
Clorox Updates Outlook for Fiscal Year 2015
● About 1% sales growth (previously sales about flat)
 
● EBIT margin about flat (unchanged)
 
● $4.40 to $4.55 diluted EPS range (previously $4.35 to $4.50)
The company now anticipates fiscal-year 2015 sales to grow about 1 percent, reflecting first-half sales results, product innovation and the benefit of price increases. The fiscal-year sales outlook also now anticipates a greater impact from unfavorable foreign exchange rates in the range of 2 percent to 3 percent. Other moderating factors include slowing economies in international markets and an increase in full-year trade-promotion spending to drive the company’s core business and trial of new products in a highly competitive environment.
Clorox continues to anticipate moderate gross margin expansion in fiscal year 2015, reflecting the benefits of cost savings and price increases. The company now anticipates commodity costs to be about flat, due to energy cost declines, which are expected to be partially offset by higher logistics costs, as well as the aforementioned increase in full-year trade-promotion spending.
Clorox continues to anticipate EBIT margin to be about flat for fiscal year 2015, reflecting moderate gross margin expansion, offset by higher demand-building investments.
Clorox continues to anticipate its effective fiscal year 2015 tax rate to be about 34 percent.
Net of all these factors, Clorox now anticipates fiscal 2015 diluted EPS from continuing operations in the range of $4.40 to $4.55.
For More Detailed Financial Information
Visit the Investors: Financial Reporting: Financial Results section of the company’s website at TheCloroxCompany.com for the following:

*	       	Combined financial tables that include the schedules below	
		 	
*		Supplemental unaudited condensed volume and sales growth information	
		 	
*		Supplemental unaudited condensed gross margin driver information	
		 	
*		Supplemental unaudited reconciliation of certain non-GAAP financial information, including earnings from continuing operations before interest and taxes (EBIT) and earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA)	
	 		
*		Supplemental balance sheet and cash flow information and free cash flow reconciliation (unaudited)	
		 	
*		Supplemental price-change information	

Page 3 of 9

Note: Percentage and basis-point changes noted in this press release are calculated based on rounded numbers. Supplemental materials are available in the Investors: Financial Reporting: Financial Results section of the company’s website at TheCloroxCompany.com.
The Clorox Company
The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products with about 7,700 employees worldwide and fiscal year 2014 sales of $5.5 billion. Clorox markets some of the most trusted and recognized consumer brand names, including its namesake bleach and cleaning products; Pine-Sol ® cleaners; Liquid Plumr ® clog removers; Poett ® home care products; Fresh Step ® cat litter; Glad ® bags, wraps and containers; Kingsford ® charcoal; Hidden Valley ® and KC Masterpiece ® dressings and sauces; Brita ® water-filtration products and Burt’s Bees ® natural personal care products. The company also markets brands for professional services, including Clorox Healthcare ® , HealthLink ® , Aplicare ® and Dispatch ® infection control products for the healthcare industry. More than 80 percent of the company's brands hold the No. 1 or No. 2 market share positions in their categories. Clorox's commitment to corporate responsibility includes making a positive difference in its communities. In fiscal year 2014, The Clorox Company and The Clorox Company Foundation contributed more than $16 million in combined cash grants, product donations, cause marketing and employee volunteerism. For more information, visit TheCloroxCompany.com .
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements involve risks and uncertainties. Except for historical information, matters discussed above, including statements about future volume, sales, costs, cost savings, earnings, cash flows, plans, objectives, expectations, growth, or profitability, are forward-looking statements based on management's estimates, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," and variations on such words, and similar expressions, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed above. Important factors that could affect performance and cause results to differ materially from management's expectations are described in the sections entitled "Risk Factors" in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2014, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Exhibit 99.2 of the Company’s Current Report on Form 8-K filed on December 4, 2014, as updated from time to time in the company's SEC filings. These factors include, but are not limited to: risks related to international operations, including political instability; government-imposed price controls or other regulations; foreign currency exchange rate controls, including periodic changes in such controls, fluctuations and devaluations; labor unrest and inflationary pressures, particularly in Argentina and other challenging markets; risks related to the possibility of nationalization, expropriation of assets, or other government action in foreign jurisdictions; risks related to the Company’s discontinuation of operations in Venezuela; intense competition in the company's markets; changes in the company’s leadership; worldwide, regional and local economic conditions and financial market volatility; volatility and increases in commodity costs such as resin, sodium hypochlorite and agricultural commodities and increases in energy, transportation or other costs; the ability of the company to drive sales growth, increase price and market share, grow its product categories and achieve favorable product and geographic mix; dependence on key customers and risks related to customer consolidation and ordering patterns; costs resulting from government regulations; the ability of the company to successfully manage global political, legal, tax and regulatory risks, including changes in regulatory or administrative activity; supply disruptions and other risks inherent in reliance on a limited base of suppliers; the ability of the company to implement and generate anticipated cost savings and efficiencies; the success of the company's business strategies; the impact of product liability claims, labor claims and other legal proceedings, including in foreign jurisdictions and the company's litigation related to its discontinued operations in Brazil; the ability of the company to develop and introduce commercially successful products; risks relating to acquisitions, new ventures and divestitures and associated costs, including the potential for asset impairment charges, related to, among others, intangible assets and goodwill; risks related to reliance on information technology systems, including potential security breaches, cyber attacks or privacy breaches that result in the unauthorized disclosure of consumer, customer, employee or company information, or service interruptions; the company's ability to attract and retain key personnel; the company's ability to maintain its business reputation and the reputation of its brands; environmental matters including costs associated with the remediation of past contamination and the handling and/or transportation of hazardous substances; the impact of natural disasters, terrorism and other events beyond the company's control; the company's ability to maximize, assert and defend its intellectual property rights; any infringement or claimed infringement by the company of third-party intellectual property rights; the effect of the company's indebtedness and credit rating on its operations and financial results; the company's ability to maintain an effective system of internal controls; uncertainties relating to tax positions, tax disputes and changes in the company's tax rate; the accuracy of the company's estimates and assumptions on which its financial statement projections are based; the company's ability to pay and declare dividends or repurchase its stock in the future; and the impacts of potential stockholder activism.
Page 4 of 9

The company's forward-looking statements in this press release are based on management's current views and assumptions regarding future events and speak only as of their dates. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
Non-GAAP Financial Information
This press release contains non-GAAP financial information relating to sales growth, diluted EPS, the debt to EBITDA ratio and EBIT margin. The company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for these reconciliations.
The company disclosed these non-GAAP financial measures to supplement its consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures exclude certain items that are included in the company’s results reported in accordance with GAAP, including income taxes, interest income, interest expense and foreign exchange impact. The exclusion of foreign exchange impact is also referred to as currency-neutral. Management believes these non-GAAP financial measures provide useful additional information to investors about trends in the company’s operations and are useful for period-over-period comparisons. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read in connection with the company’s consolidated financial statements presented in accordance with GAAP.
Media Relations
 Aileen Zerrudo (510) 271-3075, aileen.zerrudo@clorox.com
Kathryn Caulfield (510) 271-7209, kathryn.caulfield@clorox.com
Investor Relations
 Landon Dunn (510) 271-7256, landon.dunn@clorox.com
Steve Austenfeld (510) 271-2270, steve.austenfeld@clorox.com
For recent presentations made by company management and other investor materials, visit Investor Events on the company’s website.
Page 5 of 9

Condensed Consolidated Statements of Earnings (Unaudited)
Dollars in millions, except per share amounts

		Three Months Ended		Six Months Ended	
	     	12/31/2014	     	12/31/2013	     	12/31/2014	     	12/31/2013	
Net sales		$    	1,345			$    	1,308			$    	2,697			$    	2,651		
Cost of products sold			773				753				1,547				1,512		
Gross profit			572				555				1,150				1,139		
 	
Selling and administrative expenses			191				196				371				390		
Advertising costs			127				122				248				242		
Research and development costs			33				31				63				62		
Interest expense			26				26				52				52		
Other (income) expense, net			(2	)			(4	)			1				(2	)	
Earnings from continuing operations before income taxes			197				184				415				395		
Income taxes on continuing operations			69				66				142				138		
Earnings from continuing operations			128				118				273				257		
Losses from discontinued operations, net of tax			(3	)			(3	)			(58	)			(6	)	
Net earnings		$	125			$	115			$	215			$	251	 	
 	
Net earnings (losses) per share																	
       Basic																	
              Continuing operations		$	0.98			$	0.91			$	2.10			$	1.99		
              Discontinued operations			(0.02	)			(0.02	)			(0.44	)			(0.06	)	
       Basic net earnings per share		$	0.96			$	0.89			$	1.66			$	1.93		
 	
       Diluted																	
              Continuing operations		$	0.97			$	0.90			$	2.07			$	1.95		
              Discontinued operations			(0.02	)			(0.03	)			(0.44	)			(0.05	)	
       Diluted net earnings per share		$	0.95			$	0.87			$	1.63			$	1.90		
 	
Weighted average shares outstanding (in thousands)													 	 			
       Basic	 		130,555	 	 	 	129,836				129,933	 			129,955		
       Diluted		 	132,819				132,278	 	 	 	132,203				132,276		

Page 6 of 9

Reportable Segment Information
(Unaudited)
 Dollars in millions

Second Quarter		Net Sales		Earnings (Losses) from Continuing Operations
Before Income Taxes	
		Three Months Ended					Three Months Ended			
	     	12/31/14	     	12/31/13 (1)	     	% Change (2)	     	12/31/14	     	12/31/13 (1)	     	% Change (2)	
Cleaning Segment		$    	447		$    	432		              3	%		$    	107			$           	101			6%	
Household Segment			371			352		5	%			51				41			24%	
Lifestyle Segment			246			237		4	%			73				69			6%	
International Segment			281			287		-2	%			24				33			-27%	
Corporate			-			-		-				(58	)			(60	)		-3%	
Total Company		$	1,345		$	1,308		3	%		$	197			$	184			7%	
  													
Year-to-Date		Net Sales		Earnings (Losses) from Continuing Operations
Before Income Taxes	
		Six Months Ended					Six Months Ended			
	     	12/31/14	     	12/31/13 (1)	     	% Change (2)	     	12/31/14	     	12/31/13 (1)	     	% Change (2)	
Cleaning Segment		$	917		$	911		1	%		$	231			$	232			0%	
Household Segment			763			724		5	%			103				93			11%	
Lifestyle Segment			462		 	455		2	%			129				122			6%	
International Segment			555	 		561	 	-1	%		 	50	 	 		64	 	 	-22%	
Corporate	 	 	-			-		-	 	 		(98	)		 	(116	)		-16%	
Total Company		$	2,697		$	2,651		2	%		$	415			$	395			5%	

(1) As a result of Clorox Venezuela results being included in discontinued operations beginning in the first fiscal quarter of the current fiscal year, the prior comparative period has been reclassified to conform with current quarter presentation.
 (2) Percentages based on rounded numbers.
Page 7 of 9

Condensed Consolidated Balance Sheets
 Dollars in millions

		12/31/2014		6/30/2014		12/31/2013	
	     	(Unaudited)	     		     	(Unaudited)	
ASSETS													
Current assets													
       Cash and cash equivalents		$       	819			$       	329			$       	341		
       Receivables, net			473				546				499		
       Inventories, net			446				386				466		
       Other current assets			167				134				194		
              Total current assets			1,905				1,395				1,500		
 	
Property, plant and equipment, net			933				977				992		
Goodwill			1,080				1,101				1,100		
Trademarks, net			537				547				552		
Other intangible assets, net			55				64				67		
Other assets			164				174				177		
Total assets		$	4,674			$	4,258			$	4,388		
 	
LIABILITIES AND STOCKHOLDERS’ EQUITY													
Current liabilities													
       Notes and loans payable		$	2			$	143			$	342		
       Current maturities of long-term debt			875				575				-		
       Accounts payable			375				440				359		
       Accrued liabilities			492				472				480		
       Income taxes payable			-				8				-		
              Total current liabilities			1,744				1,638				1,181		
Long-term debt			1,795				1,595				2,170		
Other liabilities			773				768				765		
Deferred income taxes			81				103				116		
              Total liabilities			4,393				4,104				4,232		
	
Stockholders’ equity													
Common stock			159				159				159		
Additional paid-in capital			726				709				693		
Retained earnings			1,757				1,739				1,623		
Treasury shares			(1,908	)			(2,036	)			(1,932	)	
Accumulated other comprehensive net losses			(453	)			(417	)			(387	)	
Stockholders’ equity			281				154				156		
Total liabilities and stockholders’ equity		$	4,674			$	4,258			$	4,388		

Page 8 of 9

The tables below present the reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP and other supplemental information. See “Non-GAAP Financial Information” above for further information regarding the company’s use of non-GAAP financial measures.
The reconciliations below are on a continuing operations basis
Second-Quarter and Fiscal Year-to-Date Sales Growth Reconciliation

	 	Q2		Q2		Q2 YTD		Q2 YTD	
 		Fiscal		Fiscal		Fiscal		Fiscal	
		2015		2014		2015		2014	
Total Sales Growth – GAAP	     	2.9%	     	0.5%	     	1.7%	     	1.4%	
 	
Less: Foreign exchange		-2.8		-1.7		-2.4		-1.6	
 	
Currency Neutral Sales Growth - Non-GAAP		5.7%		2.2%		4.1%		3.0%	

The reconciliations below for fiscal year 2014 are provided as a reference point for the fiscal year 2015 outlook, and reflect the reclassification of Clorox Venezuela to discontinued operations in Q1FY15.
Fiscal Year EBIT Margin (1) Reconciliation

		FY	
		Fiscal	
		2014	
Earnings from continuing operations	     	$    	884	
before income taxes – GAAP				
 	
Interest Income			-3	
Interest Expense			103	
 	
EBIT (1) – non-GAAP		$	984	
 	
Net Sales		$	5,514	
EBIT margin (1) – non-GAAP			17.80%	

(1) EBIT represents earnings from continuing operations before interest and taxes. EBIT margin is the ratio of EBIT to net sales.
For Gross Margin Drivers, please refer to the Supplemental Information: Gross Margin Driver page in the Financial Results section of the company’s website TheCloroxCompany.com.
Page 9 of 9

The Clorox Company		

Supplemental Unaudited Condensed Information – Volume Growth

 	% Change vs. Prior Year	 	
Reportable Segments	FY14 (1)	FY15 (1)	Major Drivers of Change	
 	Q1	Q2	Q3	Q4	FY	Q1	Q2	YTD	 	
Cleaning	0%	3%	-5%	0%	-1%	-1%	3%	1%	Q2 volume increase driven by higher shipments in the Professional Products business for Health Care and Cleaning, including benefit related to Ebola and Enterovirus concerns.	
Household	2%	-1%	5%	-2%	1%	4%	3%	3%	Q2 volume increase driven by higher shipments of Glad ® Odorshield Trash behind scent innovation and distribution, and Fresh Step ® Lightweight litter products.	
Lifestyle	4%	-1%	-1%	2%	1%	0%	5%	2%	Q2 volume increase driven by higher shipments of Burt’s Bees ® lip and face care products, partially offset by lower shipments of Brita ® products.	
International	1%	3%	1%	2%	2%	5%	5%	5%	Q2 volume increase driven by higher shipments in Latin America, Canada and Europe.	
Total Company	1%	1%	0%	0%	1%	1%	4%	2%	 	

Supplemental Unaudited Condensed Information – Sales Growth

 	% Change vs. Prior Year	 	
Reportable Segments	FY14 (1)	FY15 (1)	Major Drivers of Change	
 	Q1	Q2	Q3	Q4	FY	Q1	Q2	YTD	 	
Cleaning	1%	2%	-4%	-1%	0%	-2%	3%	1%	Q2 variance between volume and sales was flat.	
Household	5%	-1%	4%	-2%	1%	5%	5%	5%	Q2 variance between volume and sales driven by the benefit of price increases.	
Lifestyle	5%	0%	-3%	2%	1%	-1%	4%	2%	Q2 variance between volume and sales was driven primarily by unfavorable mix.	
International	-2%	1%	-6%	-6%	-3%	0%	-2%	-1%	Q2 variance between volume and sales driven by unfavorable foreign currency exchange rates, partially offset by the benefit of price increases.	
Total Company	2%	0%	-2%	-2%	0%	1%	3%	2%	 	

(1) Volume growth and sales growth percentage changes for the International reportable segment and Total Company reflect the reclassification of Clorox Venezuela to discontinued operations effective Q1 fiscal 2015 for all periods presented.

The Clorox Company		
Supplemental Unaudited Condensed Information – Gross Margin Drivers
The table below provides details on the drivers of gross margin change versus the prior year.

	Gross Margin Change vs. Prior Year (basis points)	
Driver	FY14	FY15	
	Q1	Q2	Q3	Q4	FY	Q1	Q2	
Cost Savings	+180	+150	+140	+110	+140	+120	+130	
Price Changes	+80	+70	+80	+80	+80	+90	+100	
Market Movement (commodities)	-110	-140	-120	-110	-120	-40	-90	
Manufacturing & Logistics	-140	-120	-120	-240	-160	-170	-90	
All other (1)	-10	-20	-10	-10	-10	-70	-40	
Impact of Clorox Venezuela reclassification to
discontinued operations (2)	+30	+10	-	+40	+20	-	-	
Change vs prior year	+30	-50	-30	-130	-50	-70	+10	
Gross Margin (%)	43.5%	42.4%	42.1%	42.9%	42.7%	42.8%	42.5%	

(1)     	In Q2 of fiscal year 2015, ‘All other’ includes -40 bps of unfavorable foreign currency impact.	
(2)	Other than the impact of the Clorox Venezuela reclassification, none of the fiscal year 2013 and 2014 gross margin drivers have changed; all effects of the Clorox Venezuela reclassification to discontinued operations are reflected in this line.	

The Clorox Company		

Supplemental Information – Balance Sheet
 (Unaudited)
 As of December 31, 2014
Working Capital Update

	Q2					
	FY 2015	FY 2014	Change	Days (5) 	Days (5)		
	($ millions)	($ millions)	($ millions)	FY 2015	FY 2014	Change	
Receivables, net	$473	$499	-$26	31	35	-4	
Inventories	$446	$466	-$20	49	54	-5	
Accounts payable (1)	$375	$359	$16	42	42	0	
Accrued liabilities	$492	$480	$12	 	 		
Total WC (2)	$219	$320	-$101	 		 	
Total WC % net sales (3)	4.1%	6.1%	 				
Average WC (2)	$155	$267	-$112		 		
Average WC % net sales (4)	2.9%	5.1%					

Receivables, net : Decrease driven primarily by unfavorable foreign exchange rates.
Inventories : Decrease driven primarily by the write-off of inventory resulting from the discontinuation of Clorox Venezuela’s operations.

(1)     	Days of accounts payable is calculated as follows: average accounts payable / [(cost of products sold + change in inventory) / 90].	
(2)	Working capital (WC) is defined in this context as current assets minus current liabilities excluding cash and short-term debt, based on end of period balances. Average working capital represents a two-point average of working capital .	
(3)	Represents working capital at the end of the period divided by annualized net sales (current quarter net sales x 4).	
(4)	Represents a two-point average of working capital divided by annualized net sales (current quarter net sales x 4).	
(5)	Days calculations based on a two-point average.	

Supplemental Information – Cash Flow
 (Unaudited)
 For the quarter ended December 31, 2014
Capital expenditures for the second quarter were $31 million versus $36 million in the year-ago quarter.
Depreciation and amortization for the second quarter was $42 million versus $45 million in the year ago quarter.
Net cash provided by continuing operations in the second quarter was $33 million, or 2 percent of sales.

The Clorox Company		

Supplemental Unaudited Condensed Information
Fiscal Year to Date Free Cash Flow Reconciliation

	     	Q2	     	Q2	
		Fiscal		Fiscal	
		YTD		YTD	
		2015		2014	
Net cash provided by continuing operations – GAAP		$267		$222	
Less: Capital expenditures		60		63	
Free cash flow – non-GAAP (1)		$207		$159	
       Free cash flow as a percent of sales – non-GAAP (1)		7.7%		6.0%	
Net sales		$2,697		$2,651	

(1)     	In accordance with the SEC's Regulation G, this schedule provides the definition of certain non-GAAP measures and the reconciliation to the most closely related GAAP measure. Management uses free cash flow and free cash flow as a percent of sales to help assess the cash generation ability of the business and funds available for investing activities, such as acquisitions, investing in the business to drive growth, and financing activities, including debt payments, dividend payments and share repurchases. Free cash flow does not represent cash available only for discretionary expenditures, since the Company has mandatory debt service requirements and other contractual and non-discretionary expenditures. In addition, free cash flow may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded.	

The Clorox Company		

Supplemental unaudited reconciliation of earnings from continuing operations before income taxes to EBIT (1)(3) and EBITDA (2)(3)
(Adjusted to reflect Clorox Venezuela reclassified to discontinued operations)
Dollars in millions and percentages based on rounded numbers

	FY 2014			FY 2015	
  	Q1		Q2		Q3		Q4		FY			Q1		Q2	
 															
	9/30/13		12/31/13	  	3/31/14	  	6/30/14	  	6/30/14			9/30/14	  	12/31/14	
Earnings from continuing operations	  $	211		  	   $	184			  $	226			  $	263			  $	884		  	  	  $	218			  $	197		
before income taxes																											 		
Interest income		(1	)			-				(1	)			(1	)			(3	)				(1	)			(1	)	
Interest expense		26				26				25				26				103					26				26		
EBIT (1)(3)		236				210				250				288				984					243				222		
EBIT margin (1)(3)		17.6%				16.1%				18.3%				19.2%				17.8%					18.0%				16.5%		
Depreciation and amortization		43				45				43				46				177					43				42		
EBITDA (2)(3)	$	279			$	255			$	293			$	334			$	1,161				$	286			$	264		
EBITDA margin (2)(3)		  20.8%	 			  19.5%	 			  21.4%	 			  22.3%	 			  21.1%	 				  21.2%				  19.6%		
Net sales	$	1,343			$	1,308			$	1,366			$	1,497			$	5,514				$	1,352			$	1,345		
Total debt (4)																	$	2,313				$	2,224			$	2,672		
Debt to EBITDA (3)(5)																		2.0					1.9				2.3		

(1)	     	EBIT (a non-GAAP measure) represents earnings from continuing operations before income taxes (a GAAP measure), excluding interest income and interest expense, as reported above. EBIT margin is the ratio of EBIT to net sales.	
 	
(2)	 	EBITDA (a non-GAAP measure) represents earnings from continuing operations before income taxes (a GAAP measure), excluding interest income, interest expense, depreciation and amortization, as reported above. EBITDA margin is the ratio of EBITDA to net sales.	
 	
(3)	 	In accordance with the SEC's Regulation G, this schedule provides the definition of certain non-GAAP measures and the reconciliation to the most closely related GAAP measure. Management believes the presentation of EBIT, EBIT margin, EBITDA, EBITDA margin and debt to EBITDA provides additional useful information to investors about current trends in the business.	
 	
(4)	 	Total debt represents the sum of notes and loans payable, current maturities of long-term debt, and long-term debt.	
 	
(5)	 	Debt to EBITDA (a non-GAAP measure) represents total debt divided by EBITDA for the trailing four quarters. The Company calculates debt to Consolidated EBITDA for compliance with its debt covenants using Consolidated EBITDA for the trailing four quarters, as contractually defined.	

The Clorox Company
Updated: 2-4-15

U.S. Retail Pricing Actions from CY2009 - CY2015
 
Brand / Product	Average Price Change	Effective Date	
Home Care	                      		                      		        	
Green Works ® cleaners		-7 to -21%		May 2010		
Formula 409 ®		+6%		August 2011		
Clorox Clean-Up ® cleaners		+8%		August 2011		
Clorox ® Toilet Bowl Cleaner		+5%		August 2011		
Liquid-Plumr ® products		+5%		August 2011		
Pine-Sol ® cleaners		+17%		April 2012		
Clorox Clean-Up ® , Formula 409 ® ,						
and Clorox ® Disinfecting Bathroom						
spray cleaners		+5%		March 2013		
Green Works ® cleaners		+21%		July 2014	 	
Laundry						
Green Works ® liquid detergent		approx. -30%		May 2010		
Clorox ® liquid bleach		+12%		August 2011		
Clorox 2 ® stain fighter and color						
booster		+5%		August 2011		
Clorox ® liquid bleach		+7%		February 2015		
Glad					 	
GladWare ® disposable containers		-7%	 	April 2009	 	
Glad ® trash bags	 	-7%	 	May 2009		
Glad ® trash bags	 	+5%		August 2010		
Glad ® trash bags	 	+10%		May 2011		
Glad ® wraps		+7%	 	August 2011		
Glad ® food bags		+10%		November 2011		
GladWare ® disposable containers		+8%		July 2012		
Glad ® trash bags		+6%		March 2014		
Glad ® ClingWrap		+5%		March 2014		
Glad ® trash bags		+6%		November 2014		
Glad ® wraps		+5%		January 2015		
Litter				 		
Cat litter		-8 to -9%		March 2010		
Cat litter		+5%		May 2012		
Food						
Hidden Valley Ranch ® salad						
dressing		+7%		August 2011		
Charcoal						
Charcoal and lighter fluid		+7 to +16%		January 2009		
Charcoal and lighter fluid		+8 to 10%		January 2012		
Charcoal		+6%		December 2012		
Brita						
Brita ® pitchers		+3%		August 2011		
Brita ® pitchers and filters		+5%		July 2012		
Natural Personal Care						
Burt’s Bees ® lip balm		+10%		July 2013		

Notes:	
●	Individual SKUs vary within the range.	
●	This communication reflects pricing actions on primary items, and does not reflect pricing actions on our Professional Products business.