CLOROX CO /DE/, 10-Q filed on 2/5/2014
Quarterly Report
Document and Entity Information
6 Months Ended
Dec. 31, 2013
Jan. 31, 2014
Document and Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Dec. 31, 2013 
 
Entity Registrant Name
CLOROX CO /DE/ 
 
Entity Central Index Key
0000021076 
 
Current Fiscal Year End Date
--06-30 
 
Document Fiscal Period Focus
Q2 
 
Document Fiscal Year Focus
2014 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
129,914,045 
Condensed Consolidated Statements of Earnings and Comprehensive Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Condensed Consolidated Statements of Earnings and Comprehensive Income [Abstract]
 
 
 
 
Net sales
$ 1,330 
$ 1,325 
$ 2,694 
$ 2,663 
Cost of products sold
773 
762 
1,552 
1,526 
Gross profit
557 
563 
1,142 
1,137 
Selling and administrative expenses
200 
204 
398 
399 
Advertising costs
123 
116 
243 
238 
Research and development costs
31 
31 
62 
61 
Interest expense
26 
33 
52 
66 
Other income, net
(4)
(9)
(2)
(9)
Earnings from continuing operations before income taxes
181 
188 
389 
382 
Income taxes on continuing operations
65 
65 
136 
126 
Earnings from continuing operations
116 
123 
253 
256 
Losses from discontinued operations, net of tax
(1)
(2)
Net earnings
115 
123 
251 
256 
Basic net earnings (losses) per share
 
 
 
 
Continuing operations
$ 0.90 
$ 0.94 
$ 1.95 
$ 1.96 
Discontinued operations
$ (0.01)
$ 0.00 
$ (0.02)
$ 0.00 
Basic net earnings per share
$ 0.89 
$ 0.94 
$ 1.93 
$ 1.96 
Diluted net earnings (losses) per share
 
 
 
 
Continuing operations
$ 0.88 
$ 0.93 
$ 1.92 
$ 1.94 
Discontinued operations
$ (0.01)
$ 0.00 
$ (0.02)
$ 0.00 
Diluted net earnings per share
$ 0.87 
$ 0.93 
$ 1.90 
$ 1.94 
Weighted average shares outstanding (in thousands)
 
 
 
 
Basic
129,836 
130,991 
129,955 
130,630 
Diluted
132,278 
132,444 
132,276 
132,120 
Dividend declared per share
$ 0.71 
$ 0.64 
$ 1.42 
$ 1.28 
Comprehensive income
$ 96 
$ 116 
$ 231 
$ 276 
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Jun. 30, 2013
Current assets
 
 
Cash and cash equivalents
$ 341 
$ 299 
Receivables, net
499 
580 
Inventories, net
466 
394 
Other current assets
194 
147 
Total current assets
1,500 
1,420 
Property, plant and equipment, net of accumulated depreciation and amortization of $1,750 and $1,711, respectively
992 
1,021 
Goodwill
1,100 
1,105 
Trademarks, net
552 
553 
Other intangible assets, net
67 
74 
Other assets
177 
138 
Total assets
4,388 
4,311 
Current liabilities
 
 
Notes and loans payable
342 
202 
Accounts payable
359 
413 
Accrued liabilities
480 
490 
Income taxes payable
29 
Total current liabilities
1,181 
1,134 
Long-term debt
2,170 
2,170 
Other liabilities
765 
742 
Deferred income taxes
116 
119 
Total liabilities
4,232 
4,165 
Contingencies
   
   
Stockholders' equity
 
 
Preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued or outstanding
Common stock: $1.00 par value; 750,000,000 shares authorized; 158,741,461 shares issued at both December 31, 2013 and June 30, 2013; and 129,857,471 and 130,366,911 shares outstanding at December 31, 2013 and June 30, 2013, respectively
159 
159 
Additional paid-in capital
693 
661 
Retained earnings
1,623 
1,561 
Treasury shares, at cost: 28,883,990 and 28,374,550 shares at December 31, 2013 and June 30, 2013, respectively
(1,932)
(1,868)
Accumulated other comprehensive net losses
(387)
(367)
Stockholders' equity
156 
146 
Total liabilities and stockholders' equity
$ 4,388 
$ 4,311 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2013
Jun. 30, 2013
Condensed Consolidated Balance Sheets [Abstract]
 
 
Property, plant and equipment, accumulated depreciation
$ 1,750 
$ 1,711 
Preferred stock, par value per share
$ 1.00 
$ 1.00 
Preferred stock, shares authorized
5,000,000 
5,000,000 
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value per share
$ 1.00 
$ 1.00 
Common stock, shares authorized
750,000,000 
750,000,000 
Common stock, shares issued
158,741,461 
158,741,461 
Common stock, shares outstanding
129,857,471 
130,366,911 
Treasury shares, shares
28,883,990 
28,374,550 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Operating activities:
 
 
Net earnings
$ 251 
$ 256 
Deduct: Losses from discontinued operations, net of tax
(2)
Earnings from continuing operations
253 
256 
Adjustments to reconcile earnings from continuing operations to net cash provided by continuing operations:
 
 
Depreciation and amortization
89 
90 
Share-based compensation
23 
18 
Deferred income taxes
(8)
(2)
Funding of non-qualified deferred compensation plans
(26)
Other
27 
13 
Changes in:
 
 
Receivables, net
76 
71 
Inventories, net
(75)
(57)
Other current assets
(7)
Accounts payable and accrued liabilities
(74)
(59)
Income taxes payable
(66)
(8)
Net cash provided by continuing operations
212 
325 
Net cash used for discontinued operations
(2)
Net cash provided by operations
210 
325 
Investing activities:
 
 
Capital expenditures
(63)
(102)
Proceeds from sale-leaseback, net of transaction costs
108 
Other
Net cash (used for) provided by investing activities
(62)
Financing activities:
 
 
Notes and loans payable, net
140 
(295)
Long-term debt borrowings, net of issuance costs
593 
Long-term debt repayments
(350)
Treasury stock purchased
(130)
Cash dividends paid
(184)
(167)
Issuance of common stock for employee stock plans and other
71 
64 
Net cash used for financing activities
(103)
(155)
Effect of exchange rate changes on cash and cash equivalents
(3)
Net increase in cash and cash equivalents
42 
178 
Cash and cash equivalents:
 
 
Beginning of period
299 
267 
End of period
$ 341 
$ 445 
INTERIM FINANCIAL STATEMENTS
INTERIM FINANCIAL STATEMENTS

NOTE 1. INTERIM FINANCIAL STATEMENTS

Basis of Presentation

The unaudited interim condensed consolidated financial statements for the three and six months ended December 31, 2013 and 2012, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its subsidiaries (the Company) for the periods presented. The results for the interim period ended December 31, 2013, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2014, or for any other future period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (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, 2013, which includes a complete set of footnote disclosures, including the Company's significant accounting policies.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ materially from estimates and assumptions made.

Recently Issued Accounting Pronouncements

On January 15, 2014, the Financial Accounting Standards Board (FASB) issued an update to current accounting standards related to investments in low-income housing partnerships, which permits an accounting policy election for the method of accounting applied if certain conditions are met, as well as introduces new disclosure requirements. The Company currently accounts for its investments in low-income housing partnerships using the equity method of accounting (Note 3). The Company is evaluating the impact of these amendments, which are effective for the Company beginning the first quarter of fiscal year 2016, with early adoption permitted.

INVENTORIES, NET
INVENTORIES, NET

NOTE 2. INVENTORIES, NET

Inventories, net, consisted of the following as of:

        12/31/2013       6/30/2013
Finished goods   $       391     $       321  
Raw materials and packaging     123       121  
Work in process     3       3  
LIFO allowances     (39 )     (40 )
Allowances for obsolescence     (12 )     (11 )
Total   $ 466     $ 394  
OTHER ASSETS
OTHER ASSETS

NOTE 3. OTHER ASSETS

Investments in Low-Income Housing Partnerships

The Company owns, directly or indirectly, limited partnership interests in low-income housing partnerships, which are accounted for using the equity method of accounting. The Company's investment balance as of December 31, 2013 and June 30, 2013, was $4 and $6, respectively. These partnerships are considered to be variable interest entities; however, the Company does not consolidate them because it does not have the power to direct the activities of the partnerships that significantly impact their economic performance. The purpose of the partnerships is to develop and operate low-income housing rental properties. The general partners, who typically hold 1% of the partnership interests, are third parties unrelated to the Company and its affiliates, and are responsible for controlling and managing the business and financial operations of the partnerships. As a limited partner, the Company is not responsible for any of the liabilities and obligations of the partnerships nor do the partnerships or their creditors have any recourse to the Company other than for the capital requirements. All available tax benefits from low-income housing tax credits provided by the partnerships were claimed as of fiscal year 2012. The risk that previously claimed low-income housing tax credits might be recaptured or otherwise retroactively invalidated is considered remote.

OTHER LIABILITIES
OTHER LIABILITIES

NOTE 4. OTHER LIABILITIES

Other liabilities consisted of the following as of:

        12/31/2013       6/30/2013
Employee benefit obligations   $         292   $        

270

Venture agreement net terminal obligation     287     284
Taxes     78     74
Other     108     114
Total   $ 765   $ 742
NET EARNINGS PER SHARE
NET EARNINGS PER SHARE

NOTE 5. NET EARNINGS PER SHARE

The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net earnings per share (EPS) to those used to calculate diluted net EPS:

    Three Months Ended   Six Months Ended
        12/31/2013       12/31/2012       12/31/2013       12/31/2012
Basic   129,836   130,991   129,955   130,630
Dilutive effect of stock options and other   2,442   1,453   2,321   1,490
Diluted   132,278   132,444   132,276   132,120

During the three and six months ended December 31, 2013 and 2012, the Company included all stock options to purchase shares of the Company's common stock in the calculations of diluted net EPS because the average market price was greater than the exercise price of all outstanding options.

The Company has two share repurchase programs: an open-market repurchase program with an authorized aggregate purchase amount of up to $750, all of which was available for share repurchases as of December 31, 2013, and a program to offset the impact of share dilution related to share-based awards (the Evergreen Program), which has no authorization limit as to amount or timing of repurchases.

During the three and six months ended December 31, 2013, the Company repurchased zero shares and approximately 1.6 million shares, respectively, under its Evergreen Program, for an aggregate amount of $0 and $130, respectively. During the three and six months ended December 31, 2012, the Company did not repurchase any shares under the Evergreen Program. During the three and six months ended December 31, 2013 and 2012, the Company did not repurchase any shares under the open-market repurchase program.

COMPREHENSIVE INCOME
COMPREHENSIVE INCOME
NOTE 6. COMPREHENSIVE INCOME
 
Comprehensive income is defined as net earnings and other changes in stockholders' equity from transactions and other events from sources other than stockholders. Comprehensive income was as follows:
 
    Three Months Ended   Six Months Ended
        12/31/2013       12/31/2012       12/31/2013       12/31/2012
Net earnings   $        115       123     $ 251       256
Other comprehensive (loss) income, net of tax:                              
       Foreign currency translation adjustments,                              
              net of tax of $2, $1, $4 and $4, respectively     (23 )     (9 )     (19 )     18
       Net unrealized gains on derivatives,                              
              net of tax of $1, $0, $0 and $1, respectively     3       1       2       -
       Pension and postretirement benefit adjustments,                              
              net of tax of $0, $1, $2 and $1, respectively     1       1       (3 )     2
Total other comprehensive (loss) income, net of tax     (19 )     (7 )     (20 )     20
Comprehensive income   $ 96     $        116     $        231     $        276

On February 5, 2013, the FASB issued an update to current accounting standards related to disclosures of reclassifications out of accumulated other comprehensive income. The presentation requirements were adopted by the Company effective July 1, 2013 and are reflected below.
 
Changes in accumulated other comprehensive net losses by component were as follows:
 
          Foreign
currency
translation
adjustments
        Net unrealized
(losses) gains on
derivatives
        Pension and
postretirement
benefit
adjustments
        Total
Balance as of June 30, 2013, net of tax   $        (209 )   $              (30 )   $              (128 )   $        (367 )
       Other comprehensive (loss) income                                
              before reclassifications     (19 )     2       (5 )     (22 )
       Amounts reclassified from accumulated other                                
              comprehensive net losses     -       -       2       2  
Net other comprehensive (loss) income     (19 )     2       (3 )     (20 )
Balance as of December 31, 2013, net of tax   $ (228 )   $ (28 )   $ (131 )   $ (387 )

Pension and postretirement benefit reclassification adjustments are reflected in cost of products sold and selling and administrative expenses.
INCOME TAXES
INCOME TAXES
NOTE 7. INCOME TAXES
 
In determining its quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual taxable income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The effective tax rate on earnings from continuing operationswas 35.6% and 34.8% for the three and six months ended December 31, 2013, respectively, and 34.3% and 32.9% for the three and six months ended December 31, 2012, respectively.
 
The balance of unrecognized tax benefits as of December 31, 2013 and June 30, 2013, included potential benefits of $59 and $56, respectively, which, if recognized, would affect the effective tax rate on earnings.
 
The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. The total balance of accrued interest and penalties related to uncertain tax positions was $9 and $8 as of December 31, 2013 and June 30, 2013, respectively. Interest and penalties included in income tax expense resulted in a net expense of $0 and $1 for the three and six months ended December 31, 2013, respectively, and net benefits of $0 for both the three and six months ended December 31, 2012.
 
The Company files income tax returns in U.S. federal and various state, local and foreign jurisdictions. The federal statute of limitations has expired for all tax years through June 30, 2009. Various income tax returns in state and foreign jurisdictions are currently in the process of examination.
 
RETIREMENT INCOME AND HEALTH CARE BENEFIT PLANS
RETIREMENT INCOME AND HEALTH CARE BENEFIT PLANS
NOTE 8. RETIREMENT INCOME AND HEALTH CARE BENEFIT PLANS
 
The following table summarizes the components of net periodic benefit cost for the Company's retirement income plans:
 
    Three Months Ended   Six Months Ended
        12/31/2013       12/31/2012       12/31/2013       12/31/2012
Service cost   $           -     $           1     $           1     $           2  
Interest cost     7       6       13       12  
Expected return on plan assets     (7 )     (8 )     (13 )     (15 )
Amortization of unrecognized items     3       4       6       6  
Total   $ 3     $ 3     $ 7     $ 5  

The net periodic benefit cost for the Company's retirement health care plans was $0 for both the three and six months ended December 31, 2013, and $1 for both the three and six months ended December 31, 2012.
CONTINGENCIES AND GUARANTEES
CONTINGENCIES AND GUARANTEES
NOTE 9. CONTINGENCIES AND GUARANTEES
 
Contingencies
 
The Company is involved in certain environmental matters, including response actions at various locations. The Company had a recorded liability of $14 and $13 as of December 31, 2013 and June 30, 2013, respectively, for its share of aggregate future remediation costs related to these matters. One matter in Dickinson County, Michigan, for which the Company is jointly and severally liable, accounted for a substantial majority of the recorded liability as of both December 31, 2013 and June 30, 2013. The Company has agreed to be liable for 24.3% of the aggregate remediation and associated costs for this matter pursuant to a cost-sharing arrangement with a third party. With the assistance of environmental consultants, the Company maintains an undiscounted liability representing its current best estimate of its share of the capital expenditures, maintenance and other costs that may be incurred over an estimated 30-year remediation period. Currently, the Company cannot accurately predict the timing of future payments that may be made under this obligation. In addition, the Company's estimated loss exposure is sensitive to a variety of uncertain factors, including the efficacy of remediation efforts, changes in remediation requirements and the future availability of alternative clean-up technologies. Although it is reasonably possible that the Company's exposure may exceed the amount recorded, any amount of such additional exposures, or range of exposures, is not estimable at this time.
 
In October 2012, a Brazilian appellate court issued an adverse decision in a lawsuit pending in Brazil against the Company and one of its wholly owned subsidiaries, The Glad Products Company (Glad). The lawsuit was initially filed in a Brazilian lower court in 2002 by two Brazilian companies and one Uruguayan company (collectively, Petroplus) related to joint venture agreements for the distribution of STP auto-care products in Brazil with three companies that became subsidiaries of the Company as a result of the Company's merger with First Brands Corporation in January 1999 (collectively, Clorox Subsidiaries). The pending lawsuit seeks indemnification for damages and losses for alleged breaches of the joint venture agreements and abuse of economic power by the Company and Glad. Petroplus had previously unsuccessfully raised the same claims and sought damages from the Company and the Clorox Subsidiaries in an International Chamber of Commerce (ICC) arbitration proceeding in Miami filed in 2001. The ICC arbitration panel unanimously ruled against Petroplus in a final decision in November 2003 (Final ICC Arbitration Award). The Final ICC Arbitration Award was ratified by the Superior Court of Justice of Brazil in May 2007 (Foreign Judgment), and the United States District Court for the Southern District of Florida subsequently confirmed the Final ICC Arbitration Award and recognized and adopted the Foreign Judgment as a judgment of the United States District Court for the Southern District of Florida (U.S. Judgment). Despite this, in March 2008, a Brazilian lower court ruled against the Company and Glad in the pending lawsuit and awarded Petroplus R$23 ($13) plus interest. The value of that judgment, including interest and foreign exchange fluctuations as of December 31, 2013, was approximately $34.
 
Among other defenses, because the Final ICC Arbitration Award, the Foreign Judgment and the U.S. Judgment relate to the same claims as those in the pending lawsuit, the Company believes that Petroplus is precluded from re-litigating these claims. Based on the unfavorable appellate court decision, the Company believes that it is reasonably possible that a loss could be incurred in this matter in excess of amounts accrued, and that the estimated range of such loss in this matter is from $0 to $28. The Company continues to believe that its defenses are meritorious, and has appealed the decision to the highest courts of Brazil, which could take years to resolve. In the first stage of the appellate process, in December 2013 the appellate court declined to admit the Company's appeals to the highest courts. The Company has now appealed directly to the highest courts. Expenses related to this litigation and any potential additional loss would be reflected in discontinued operations, consistent with the Company's classification of expenses related to its discontinued Brazil operations.
 
In a separate action filed in 2004 by Petroplus, a lower Brazilian court in January 2013 nullified the Final ICC Arbitration Award. The Company believes this judgment is inconsistent with the Foreign Judgment and the U.S. Judgment and that it is without merit. The Company has appealed this decision.
 
Glad and the Clorox Subsidiaries have also filed separate lawsuits against Petroplus alleging misuse of the STP trademark and related matters, which are currently pending before Brazilian courts, and have taken other legal actions against Petroplus, which are pending. Additionally, in November 2013, the Clorox Subsidiaries initiated a new ICC arbitration seeking damages against Petroplus.
 
The Company is subject to various lawsuits, claims and other loss contingencies relating to issues such as contract disputes, product liability, patents and trademarks, advertising, and employee and other matters. Based on management's analysis, it is the opinion of management that the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, individually or in the aggregate, on the Company's consolidated financial statements taken as a whole.
 
Guarantees
 
In conjunction with divestitures and other transactions, the Company may provide typical indemnifications (e.g., indemnifications for representations and warranties and retention of previously existing environmental, tax and employee liabilities) that have terms that vary in duration and in the potential amount of the total obligation and, in many circumstances, are not explicitly defined. The Company has not made, nor does it believe that it is probable that it will make, any payments relating to its indemnifications, and believes that any reasonably possible payments would not have a material adverse effect, individually or in the aggregate, on the Company's consolidated financial statements taken as a whole.
 
As of December 31, 2013, the Company was a party to a letter of credit of $12, related to one of its insurance carriers, of which $0 had been drawn upon.
 
The Company had not recorded any liabilities on the aforementioned guarantees as of December 31, 2013 and June 30, 2013.
SEGMENT RESULTS
SEGMENT RESULTS
NOTE 10. SEGMENT RESULTS
 
The Company operates through strategic business units that are aggregated into four reportable segments: Cleaning, Household, Lifestyle and International.
  • Cleaning consists of laundry, home care and professional products marketed and sold in the United States. Products within this segment include laundry additives, including bleach products under the Clorox® brand and Clorox 2® stain fighter and color booster; home care products, primarily under the Clorox®, Formula 409®, Liquid-Plumr®, Pine-Sol®, S.O.S® and Tilex® brands; naturally derived products under the Green Works® brand; and professional cleaning and disinfecting products under the Clorox®, Dispatch®, Aplicare®, HealthLink® and Clorox Healthcare™ brands.
  • Household consists of charcoal, cat litter and plastic bags, wraps and container products marketed and sold in the United States. Products within this segment include plastic bags, wraps and containers under the Glad® brand; cat litter products under the Fresh Step®, Scoop Away® and Ever Clean® brands; and charcoal products under the Kingsford® and Match Light® brands.
  • Lifestyle consists of food products, water-filtration systems and filters, and natural personal care products marketed and sold in the United States. Products within this segment include dressings and sauces, primarily under the Hidden Valley®, KC Masterpiece® and Soy Vay® brands; water-filtration systems and filters under the Brita® brand; and natural personal care products under the Burt's Bees® and güd® brands.
  • International consists of products sold outside the United States. Products within this segment include laundry, home care, water-filtration, charcoal and cat litter products, dressings and sauces, plastic bags, wraps and containers and natural personal care products, primarily under the Clorox®, Javex®, Glad®, PinoLuz®, Ayudin®, Limpido®, Clorinda®, Poett®, Mistolin®, Lestoil®, Bon Bril®, Nevex®, Brita®, Green Works®, Pine-Sol®, Agua Jane®, Chux®, Kingsford®, Fresh Step®, Scoop Away®, Ever Clean®, KC Masterpiece®, Hidden Valley® and Burt's Bees® brands.
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, property and equipment, other investments and deferred taxes.
 
The table below presents reportable segment information and a reconciliation of the segment information to the Company's consolidated net sales and earnings from continuing operations before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate.
 
    Net sales
    Three Months Ended   Six Months Ended
        12/31/2013       12/31/2012       12/31/2013       12/31/2012
Cleaning   $       432     $       425     $       911     $       897  
Household     352       357       724       712  
Lifestyle     237       237       455       445  
International     309       306       604       609  
Total   $ 1,330     $ 1,325     $ 2,694     $ 2,663  
 
    Earnings (losses) from continuing operations before income taxes
    Three Months Ended   Six Months Ended
    12/31/2013   12/31/2012   12/31/2013   12/31/2012
Cleaning   $ 101     $ 100     $ 232     $ 220  
Household     41       56       93       106  
Lifestyle     69       70       122       126  
International     30       25       58       53  
Corporate     (60 )     (63 )     (116 )     (123 )
Total   $ 181     $ 188     $ 389     $ 382  
 
All intersegment sales are eliminated and are not included in the Company's reportable segments' net sales.
 
Net sales to the Company's largest customer, Wal-Mart Stores, Inc. and its affiliates, as a percentage of consolidated net sales, were 26% for both the three and six months ended December 31, 2013, and 25% and 26% for the three and six months ended December 31, 2012, respectively.
 
Venezuela
 
The financial statements of the Company's subsidiary in Venezuela are consolidated under the rules governing the preparation of financial statements in a highly inflationary economy. As such, the subsidiary's non-U.S. dollar (non-USD) monetary assets and liabilities are remeasured into USD each reporting period with the resulting gains and losses reflected in other income, net. The operating environment in Venezuela is challenging, with high inflation, governmental restrictions in the form of currency exchange, price and margin controls, labor unrest, and the possibility of government actions such as further devaluations, business occupations or intervention and expropriation of assets. In addition, the foreign exchange controls in Venezuela limit the Company's ability to repatriate earnings and the Venezuela subsidiary's ability to remit dividends and pay intercompany balances at any official exchange rate or at all.
 
As of December 31, 2013, using the official currency exchange (CADIVI) rate of 6.3 bolívares fuertes (VEF) per USD, the Company's Venezuela subsidiary had cash and cash equivalents of $10, a long-term value added tax (VAT) receivable from the Venezuelan government of $14 and total assets of $86. In addition, the Venezuela subsidiary had intangible assets excluding goodwill of $8, which the Company regularly reviews along with its goodwill balances (held and tested at the Latin America reporting unit level) for any current and future risk of impairment. For both the six months ended December 31, 2013 and the year ended June 30, 2013, net sales from the Company's Venezuela subsidiary represented approximately 2% of the Company's consolidated net sales for those periods.

On February 8, 2013, the Venezuelan government announced a devaluation of the CADIVI rate from 4.3 to 6.3 VEF per USD and the elimination of the alternative currency exchange system, SITME. Prior to February 8, 2013, the Company had been utilizing the rate at which it had been obtaining USD through SITME to remeasure its Venezuelan financial statements, which was 5.7 VEF per USD at the announcement date. In response to these developments, the Company began utilizing the CADIVI rate of 6.3 VEF per USD to translate the financial statements of its Venezuela subsidiary.

In March 2013, the Venezuelan government announced the creation of a new alternative currency exchange system (SICAD), which is intended to complement CADIVI. While no official results of the SICAD auctions have been published by the Venezuelan government, the SICAD rate is estimated to be significantly higher than the CADIVI rate. Based on a number of factors, including the limited number of SICAD auctions held to date, the Company's inability to access the SICAD exchange to date, the restrictions placed on eligible participants, the amount of USD available for purchase through the auction process, and the historical lack of official information about the resulting SICAD rate, at this time the Company does not currently believe it would be appropriate to use rates coming from the SICAD exchange system for financial reporting purposes. On January 24, 2014, the Venezuelan government made announcements related to the SICAD exchange system that could potentially impact the Company's operations and financial reporting. At this time, the Company is not able to predict the impact of these announcements and continues to monitor developments.

In addition to exchange controls, a majority of the Company's product portfolio in Venezuela is subject to price controls, which restrict the Company's ability to increase prices to offset the impact of continuing high inflation on product, labor and other operating costs. In addition to the price control laws, in November 2013, the Venezuelan legislature approved an "enabling law" granting the president of Venezuela the authority to enact laws and regulations in certain policy areas by decree. This authority includes the ability to restrict profit margins and impose greater controls on foreign exchange and the production, import, and distribution of staples and other goods. Among other actions, the president has used this decree power to pass the Law of Costs, Earnings, and Fair Profits, which became effective in January 2014 and, among other things, authorizes the Venezuelan government to set "just prices" and maximum profit margins in the private sector.

The Company's business and cash flows in Venezuela have been negatively affected by these difficult political and economic conditions and the business has operated at a loss for the six months ended December 31, 2013. The Company continues to closely monitor developments in this dynamic environment, assess evolving business risks and actively manage its investments in Venezuela.

Argentina

The operating environment in Argentina also presents challenges, including price controls on some of the Company's products, a devaluing currency, and inflation. For the year ended June 30, 2013 and the six months ended December 31, 2013, the value of the Argentine peso (ARS) declined 16% and 18%, respectively. Subsequent to December 31, 2013, the value of the ARS has declined an additional 19% from 6.5 to 8.0 ARS per USD as of January 31, 2014.

As of December 31, 2013, using the exchange rate of 6.5 ARS per USD, the Company's Argentina subsidiary had cash and cash equivalents of $14 and total assets of $106. For the six months ended December 31, 2013 and the year ended June 30, 2013, net sales from the Company's Argentina subsidiary represented approximately 4% and 3%, respectively, of the Company's consolidated net sales for those periods. The Company is closely monitoring developments in Argentina and is taking steps intended to mitigate the adverse conditions.

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

NOTE 11. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Financial assets and liabilities carried at fair value in the consolidated balance sheets are required to be classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs reflecting the reporting entity's own assumptions.

As of December 31, 2013, the Company's financial assets and liabilities that were measured at fair value on a recurring basis during the period included derivative financial instruments, which were all classified as Level 2, and trust assets to fund certain of the Company's non-qualified deferred compensation plans, which were classified as Level 1. As of June 30, 2013, the Company's financial assets and liabilities that were measured at fair value on a recurring basis during the period included derivative financial instruments, which were all classified as Level 2.

Financial Risk Management and Derivative Instruments

The Company is exposed to certain commodity, interest rate and foreign currency 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 to fix the price of a portion of its forecasted raw material requirements. Contract maturities, which are generally no longer than 18 months, are matched to the length of the raw material purchase contracts. Commodity purchase contracts are measured at fair value using market data for similar instruments priced within a relatively similar time period by commodity derivative dealers.

As of December 31, 2013, the notional amount of commodity derivatives was $51, of which $28 related to soybean oil futures and $23 related to jet fuel swaps. As of June 30, 2013, the notional amount of commodity derivatives was $51, of which $32 related to jet fuel swaps and $19 related to soybean oil futures.

Interest Rate Risk Management

The Company may enter into over-the-counter interest rate forward contracts to fix a portion of the benchmark interest rate prior to the anticipated issuance of fixed rate debt. These interest rate forward contracts generally have durations of less than 12 months. Interest rate contracts are measured at fair value using information quoted by U.S. government bond dealers.

As of both December 31, 2013 and June 30, 2013, there were no outstanding interest rate forward contracts. Subsequent to December 31, 2013, the Company entered into interest rate forward contracts with a notional amount of $288 related to the anticipated refinancing of senior notes maturing in January 2015.

Foreign Currency Risk Management

The Company may also enter into certain over-the-counter foreign currency-related derivative contracts to manage a portion of the Company's foreign exchange risk associated with the purchase of inventory and certain intercompany transactions. These foreign currency contracts generally have durations of no longer than 20 months. The foreign exchange contracts are measured at fair value using market data for similar instruments priced by foreign exchange dealers.

The notional amount of outstanding foreign currency forward contracts used by the Company's subsidiaries in Australia, Canada and New Zealand to hedge forecasted purchases of inventory were $20, $6 and $2, respectively, as of December 31, 2013, and $22, $18 and $4, respectively, as of June 30, 2013. There were no outstanding contracts to economically hedge foreign exchange risk associated with certain intercompany transactions as of both December 31, 2013 and June 30, 2013.

Counterparty Risk Management

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. The $2 and $3 of derivative instruments reflected in liabilities as of December 31, 2013 and June 30, 2013, respectively, contained such terms. As of both December 31, 2013 and June 30, 2013, the Company was not required to post any collateral.

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 December 31, 2013 and June 30, 2013, the Company and each of its counterparties had been assigned investment grade ratings with both Standard & Poor's and Moody's.

Fair Value of Financial Instruments

Derivatives
 
The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as an accounting hedge, and, if so, on the type of hedging relationship. For those derivative instruments designated and qualifying as hedging instruments, the Company must designate the hedging instrument as a fair value hedge or a cash flow hedge. The Company designates its commodity forward and future contracts for forecasted purchases of raw materials, interest rate forward contracts for forecasted interest payments, and foreign currency forward contracts for forecasted purchases of inventory as cash flow hedges. The Company does not designate its foreign currency forward contracts for intercompany transactions as accounting hedges. During the three and six months ended December 31, 2013 and 2012, the Company had no hedging instruments designated as fair value hedges.
 
Trust assets
 
Beginning in December 2013, the Company holds mutual funds and cash equivalents as part of trusts related to certain of its non-qualified deferred compensation plans. 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 mutual funds are measured at fair value using quoted market prices. The Company has designated these marketable securities as trading investments because the participants in the deferred compensation plans may select the mutual funds in which their compensation deferrals are invested within the confines of the trusts which hold the marketable securities.

The Company's derivatives designated as hedging instruments and trust assets related to certain of the Company's non-qualified deferred compensation plans were recorded at fair value in the condensed consolidated balance sheets as follows:

    Balance sheet
classification
  12/31/2013   6/30/2013
      Level 1   Level 2   Level 1   Level 2
Assets                                           
Foreign exchange derivative contracts   Other current assets   $ -   $ 2   $ -   $ 4
Commodity purchase derivative contracts   Other current assets     -     1     -     -
Trust assets for non-qualified deferred compensation plans   Other assets     26     -     -     -
        $        26   $        3   $        -   $        4
 
Liabilities                            
Commodity purchase derivative contracts   Accrued liabilities   $ -   $ 1   $ -   $ 3
Commodity purchase derivative contracts   Other liabilities     -     1     -     -
        $ -   $ 2   $ -   $ 3

For derivative instruments designated and qualifying as cash flow hedges, the effective portion of gains or losses is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The estimated amount of the existing net loss in OCI as of December 31, 2013, expected to be reclassified into earnings within the next 12 months is $2. Gains and losses on derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. During the three and six months ended December 31, 2013 and 2012, respectively, hedge ineffectiveness was not significant. The Company de-designates cash flow hedge relationships whenever it determines that the hedge relationships are no longer highly effective or that the forecasted transaction is no longer probable. The portion of gains or losses on the derivative instrument previously accumulated in OCI for de-designated hedges remains in accumulated OCI until the forecasted transaction is recognized in earnings, or is recognized in earnings immediately if the forecasted transaction is no longer probable. Changes in the value of derivative instruments not designated as accounting hedges are recorded in other income, net.

The effects of derivative instruments designated as hedging instruments on OCI and the condensed consolidated statements of earnings and comprehensive income were as follows:

    Gain (loss) recognized in OCI
    Three Months Ended   Six Months Ended
        12/31/2013       12/31/2012       12/31/2013       12/31/2012
Commodity purchase contracts   $ 3     $ -     $ 1     $ 2  
Interest rate contracts     -       -       -       (1 )
Foreign exchange contracts     1       1       1       (1 )
Total   $ 4     $ 1     $ 2     $ -  
  
    Gain (loss) reclassified from OCI and recognized in earnings
    Three Months Ended   Six Months Ended
    12/31/2013   12/31/2012   12/31/2013   12/31/2012
Interest rate contracts   $                (1 )   $                (1 )   $                (2 )   $                 (2 )
Foreign exchange contracts     1       -       2       -  
Total   $ -     $ (1 )   $ -     $ (2 )

The gains reclassified from OCI and recognized in earnings during the three and six months ended December 31, 2013 for foreign exchange contracts were included in cost of products sold. The losses reclassified from OCI and recognized in earnings during the three and six months ended December 31, 2013 and 2012 for interest rate contracts were included in interest expense.

The gain from derivatives not designated as accounting hedges was $0 for both the three and six months ended December 31, 2013, and $0 and $1 for the three and six months ended December 31, 2012, respectively, and was reflected in other income, net.

Changes in the value of the trust assets related to certain of the Company's non-qualified deferred compensation plans are recorded in other income, net, in the condensed consolidated statements of earnings and comprehensive income. For the three months ended December 31, 2013, the Company reflected $0 in other income, net, related to these assets.

Other

The carrying values of cash and cash equivalents, accounts receivable, notes and loans payable and accounts payable approximated their fair values as of December 31, 2013 and June 30, 2013, due to their short maturity and nature. The estimated fair value of long-term debt, including current maturities, was $2,238 and $2,263 as of December 31, 2013 and June 30, 2013, respectively. The fair value of long-term debt was determined using secondary market prices quoted by corporate bond dealers, and was classified as Level 2. The Company accounts for its long-term debt at face value, net of any unamortized discounts or premiums.

INTERIM FINANCIAL STATEMENTS (Policy)

Basis of Presentation

The unaudited interim condensed consolidated financial statements for the three and six months ended December 31, 2013 and 2012, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its subsidiaries (the Company) for the periods presented. The results for the interim period ended December 31, 2013, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2014, or for any other future period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (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, 2013, which includes a complete set of footnote disclosures, including the Company's significant accounting policies.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ materially from estimates and assumptions made.

Recently Issued Accounting Pronouncements

On January 15, 2014, the Financial Accounting Standards Board (FASB) issued an update to current accounting standards related to investments in low-income housing partnerships, which permits an accounting policy election for the method of accounting applied if certain conditions are met, as well as introduces new disclosure requirements. The Company currently accounts for its investments in low-income housing partnerships using the equity method of accounting (Note 3). The Company is evaluating the impact of these amendments, which are effective for the Company beginning the first quarter of fiscal year 2016, with early adoption permitted.

INVENTORIES, NET (Tables)
Schedule of Inventories
        12/31/2013       6/30/2013
Finished goods   $       391     $       321  
Raw materials and packaging     123       121  
Work in process     3       3  
LIFO allowances     (39 )     (40 )
Allowances for obsolescence     (12 )     (11 )
Total   $ 466     $ 394  
OTHER LIABILITIES (Tables)
Schedule of Other Liabilities
        12/31/2013       6/30/2013
Employee benefit obligations   $         292   $        

270

Venture agreement net terminal obligation     287     284
Taxes     78     74
Other     108     114
Total   $ 765   $ 742
NET EARNINGS PER SHARE (Tables)
Schedule of Weighted Average Number of Shares
    Three Months Ended   Six Months Ended
        12/31/2013       12/31/2012       12/31/2013       12/31/2012
Basic   129,836   130,991   129,955   130,630
Dilutive effect of stock options and other   2,442   1,453   2,321   1,490
Diluted   132,278   132,444   132,276   132,120
COMPREHENSIVE INCOME (Tables)
    Three Months Ended   Six Months Ended
        12/31/2013       12/31/2012       12/31/2013       12/31/2012
Net earnings   $        115       123     $ 251       256
Other comprehensive (loss) income, net of tax:                              
       Foreign currency translation adjustments,                              
              net of tax of $2, $1, $4 and $4, respectively     (23 )     (9 )     (19 )     18
       Net unrealized gains on derivatives,                              
              net of tax of $1, $0, $0 and $1, respectively     3       1       2       -
       Pension and postretirement benefit adjustments,                              
              net of tax of $0, $1, $2 and $1, respectively     1       1       (3 )     2
Total other comprehensive (loss) income, net of tax     (19 )     (7 )     (20 )     20
Comprehensive income   $ 96     $        116     $        231     $        276
          Foreign
currency
translation
adjustments
        Net unrealized
(losses) gains on
derivatives
        Pension and
postretirement
benefit
adjustments
        Total
Balance as of June 30, 2013, net of tax   $        (209 )   $              (30 )   $              (128 )   $        (367 )
       Other comprehensive (loss) income                                
              before reclassifications     (19 )     2       (5 )     (22 )
       Amounts reclassified from accumulated other                                
              comprehensive net losses     -       -       2       2  
Net other comprehensive (loss) income     (19 )     2       (3 )     (20 )
Balance as of December 31, 2013, net of tax   $ (228 )   $ (28 )   $ (131 )   $ (387 )
RETIREMENT INCOME AND HEALTHCARE BENEFIT PLANS (Tables)
Schedule of Components of Net Periodic Benefit Cost
  Three Months Ended   Six Months Ended
        12/31/2013       12/31/2012       12/31/2013       12/31/2012
Service cost   $           -     $           1     $           1     $           2  
Interest cost     7       6       13       12  
Expected return on plan assets     (7 )     (8 )     (13 )     (15 )
Amortization of unrecognized items     3       4       6       6  
Total   $ 3     $ 3     $ 7     $ 5  
SEGMENT RESULTS (Tables)
Schedule of Segment Reporting Information
    Net sales
    Three Months Ended   Six Months Ended
        12/31/2013       12/31/2012       12/31/2013       12/31/2012
Cleaning   $       432     $       425     $       911     $       897  
Household     352       357       724       712  
Lifestyle     237       237       455       445  
International     309       306       604       609  
Total   $ 1,330     $ 1,325     $ 2,694     $ 2,663  
 
    Earnings (losses) from continuing operations before income taxes
    Three Months Ended   Six Months Ended
    12/31/2013   12/31/2012   12/31/2013   12/31/2012
Cleaning   $ 101     $ 100     $ 232     $ 220  
Household     41       56       93       106  
Lifestyle     69       70       122       126  
International     30       25       58       53  
Corporate     (60 )     (63 )     (116 )     (123 )
Total   $ 181     $ 188     $ 389     $ 382  
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
    Balance sheet
classification
  12/31/2013   6/30/2013
      Level 1   Level 2   Level 1   Level 2
Assets                                           
Foreign exchange derivative contracts   Other current assets   $ -   $ 2   $ -   $ 4
Commodity purchase derivative contracts   Other current assets     -     1     -     -
Trust assets for non-qualified deferred compensation plans   Other assets     26     -     -     -
        $        26   $        3   $        -   $        4
 
Liabilities                            
Commodity purchase derivative contracts   Accrued liabilities   $ -   $ 1   $ -   $ 3
Commodity purchase derivative contracts   Other liabilities     -     1     -     -
        $ -   $ 2   $ -   $ 3
    Gain (loss) recognized in OCI
    Three Months Ended   Six Months Ended
        12/31/2013       12/31/2012       12/31/2013       12/31/2012
Commodity purchase contracts   $ 3     $ -     $ 1     $ 2  
Interest rate contracts     -       -       -       (1 )
Foreign exchange contracts     1       1       1       (1 )
Total   $ 4     $ 1     $ 2     $ -  
  
    Gain (loss) reclassified from OCI and recognized in earnings
    Three Months Ended   Six Months Ended
    12/31/2013   12/31/2012   12/31/2013   12/31/2012
Interest rate contracts   $                (1 )   $                (1 )   $                (2 )   $                 (2 )
Foreign exchange contracts     1       -       2       -  
Total   $ -     $ (1 )   $ -     $ (2 )
INVENTORIES, NET (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Jun. 30, 2013
INVENTORIES, NET [Abstract]
 
 
Finished goods
$ 391 
$ 321 
Raw materials and packaging
123 
121 
Work in process
LIFO allowances
(39)
(40)
Allowances for obsolescence
(12)
(11)
Total
$ 466 
$ 394 
OTHER ASSETS (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Jun. 30, 2013
OTHER ASSETS [Abstract]
 
 
Investment in low-income housing partnerships
$ 4 
$ 6 
OTHER LIABILITIES (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Jun. 30, 2013
OTHER LIABILITIES [Abstract]
 
 
Employee benefit obligations
$ 292 
$ 270 
Venture agreement net terminal obligation
287 
284 
Taxes
78 
74 
Other
108 
114 
Total
$ 765 
$ 742 
NET EARNINGS PER SHARE (Schedule of Weighted Average Number of Shares) (Details)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
NET EARNINGS PER SHARE [Abstract]
 
 
 
 
Basic
129,836 
130,991 
129,955 
130,630 
Dilutive effect of stock options and other
2,442 
1,453 
2,321 
1,490 
Diluted
132,278 
132,444 
132,276 
132,120 
NET EARNINGS PER SHARE (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Net Earnings Per Share [Line Items]
 
 
 
 
Stock options excluded from calculation of diluted net EPS
Open-market program [Member]
 
 
 
 
Net Earnings Per Share [Line Items]
 
 
 
 
Share repurchase program, remaining authorized repurchase amount
 
 
$ 750 
 
Share repurchase program, shares repurchased
Share repurchase program, value of shares repurchased
Evergreen Program [Member]
 
 
 
 
Net Earnings Per Share [Line Items]
 
 
 
 
Share repurchase program, shares repurchased
1,600,000 
Share repurchase program, value of shares repurchased
$ 0 
$ 0 
$ 130 
$ 0 
COMPREHENSIVE INCOME (Schedule of Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
COMPREHENSIVE INCOME [Abstract]
 
 
 
 
Net earnings
$ 115 
$ 123 
$ 251 
$ 256 
Other comprehensive income (losses), net of tax:
 
 
 
 
Foreign currency translation adjustments
(23)
(9)
(19)
18 
Net unrealized gains on derivatives
Pension and postretirement benefit adjustments
(3)
Total other comprehensive (loss) income, net of tax
(19)
(7)
(20)
20 
Comprehensive income
96 
116 
231 
276 
Other comprehensive (loss) income, tax:
 
 
 
 
Foreign currency translation adjustments
(2)
(1)
(4)
Net unrealized gains on derivatives
Pension and postretirement benefit adjustments
$ 0 
$ 1 
$ (2)
$ 1 
COMPREHENSIVE INCOME (Schedule of Changes in Accumulated Other Comprehensive Net Losses) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Beginning balance, net of tax
 
 
$ (367)
 
Other comprehensive income (loss) before reclassifications
 
 
(22)
 
Amounts reclassified from accumulated other comprehensive net losses
 
 
 
Total other comprehensive (loss) income, net of tax
(19)
(7)
(20)
20 
Ending balance, net of tax
(387)
 
(387)
 
Foreign currency translation adjustments [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Beginning balance, net of tax
 
 
(209)
 
Other comprehensive income (loss) before reclassifications
 
 
(19)
 
Amounts reclassified from accumulated other comprehensive net losses
 
 
 
Total other comprehensive (loss) income, net of tax
 
 
(19)
 
Ending balance, net of tax
(228)
 
(228)
 
Net unrealized (losses) gains on derivatives [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Beginning balance, net of tax
 
 
(30)
 
Other comprehensive income (loss) before reclassifications
 
 
 
Amounts reclassified from accumulated other comprehensive net losses
 
 
 
Total other comprehensive (loss) income, net of tax
 
 
 
Ending balance, net of tax
(28)
 
(28)
 
Pension and postretirement benefit adjustments [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Beginning balance, net of tax
 
 
(128)
 
Other comprehensive income (loss) before reclassifications
 
 
(5)
 
Amounts reclassified from accumulated other comprehensive net losses
 
 
 
Total other comprehensive (loss) income, net of tax
 
 
(3)
 
Ending balance, net of tax
$ (131)
 
$ (131)
 
INCOME TAXES (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Jun. 30, 2013
INCOME TAXES [Abstract]
 
 
 
 
 
Effective tax rate on earnings
35.60% 
34.30% 
34.80% 
32.90% 
 
Potential unrecognized tax benefits which, if recognized, would affect the effective tax rate on earnings
$ 59 
 
$ 59 
 
$ 56 
Accrued interest and penalties related to uncertain tax positions
 
 
Interest and penalties expense (benefit) included in income tax expense
$ 0 
$ 0 
$ 1 
$ 0 
 
RETIREMENT INCOME AND HEALTH CARE BENEFIT PLANS (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Defined Benefit Plans [Line Items]
 
 
 
 
Service Cost
$ 0 
$ 1 
$ 1 
$ 2 
Interest Cost
13 
12 
Expected return on plan assets
(7)
(8)
(13)
(15)
Amortization of unrecognized items
Net periodic benefit cost
Retirement Health Care Plans [Member]
 
 
 
 
Defined Benefit Plans [Line Items]
 
 
 
 
Net periodic benefit cost
$ 0 
$ 1 
$ 0 
$ 1 
CONTINGENCIES AND GUARANTEES (Details)
In Millions, unless otherwise specified
1 Months Ended 6 Months Ended
Mar. 31, 2008
USD ($)
Mar. 31, 2008
BRL
Dec. 31, 2013
USD ($)
Jun. 30, 2013
USD ($)
CONTINGENCIES AND GUARANTEES [Abstract]
 
 
 
 
Liability for future remediation costs
 
 
$ 14 
$ 13 
Percentage of liability for aggregate remediation and associated costs, other than legal fees
 
 
24.30% 
 
Remediation period
 
 
30 years 
 
Amount awarded to Petroplus
13 
23 
 
 
Current value of judgment
 
 
34 
 
Estimated range of loss in excess of amounts accrued, minimum
 
 
 
Estimated range of loss in excess of amounts accrued, maximum
 
 
28 
 
Letter of credit
 
 
12 
 
Letter of credit, amount outstanding
 
 
$ 0 
 
SEGMENT RESULTS (Schedule of Segment Reporting Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ 1,330 
$ 1,325 
$ 2,694 
$ 2,663 
Earnings (losses) from continuing operations before income taxes
181 
188 
389 
382 
Cleaning [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
432 
425 
911 
897 
Earnings (losses) from continuing operations before income taxes
101 
100 
232 
220 
Household [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
352 
357 
724 
712 
Earnings (losses) from continuing operations before income taxes
41 
56 
93 
106 
Lifestyle [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
237 
237 
455 
445 
Earnings (losses) from continuing operations before income taxes
69 
70 
122 
126 
International [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
309 
306 
604 
609 
Earnings (losses) from continuing operations before income taxes
30 
25 
58 
53 
Corporate [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Earnings (losses) from continuing operations before income taxes
$ (60)
$ (63)
$ (116)
$ (123)
SEGMENT RESULTS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 6 Months Ended
Dec. 31, 2013
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2012
Dec. 31, 2013
Venezuelan Subsidiary [Member]
Jun. 30, 2013
Venezuelan Subsidiary [Member]
Feb. 8, 2013
Venezuelan Subsidiary [Member]
Dec. 31, 2013
Argentine Subsidiary [Member]
Jun. 30, 2013
Argentine Subsidiary [Member]
Jan. 31, 2014
Argentine Subsidiary [Member]
Subsequent Event [Member]
Dec. 31, 2013
Net sales [Member]
Wal-Mart Stores, Inc. [Member]
Dec. 31, 2012
Net sales [Member]
Wal-Mart Stores, Inc. [Member]
Dec. 31, 2013
Net sales [Member]
Wal-Mart Stores, Inc. [Member]
Dec. 31, 2012
Net sales [Member]
Wal-Mart Stores, Inc. [Member]
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Concentration percentage
 
 
 
 
 
 
 
 
 
 
26.00% 
25.00% 
26.00% 
26.00% 
Decline in value of foreign currency
 
 
 
 
 
 
 
18.00% 
16.00% 
19.00% 
 
 
 
 
Exchange rate per USD
 
 
 
 
6.3 
 
6.3 
6.5 
 
8.0 
 
 
 
 
Exchange rate per USD before devaluation
 
 
 
 
 
 
4.3 
 
 
 
 
 
 
 
Venezuela alternative currency exchange system (SITME) rate before elimination
 
 
 
 
 
 
5.7 
 
 
 
 
 
 
 
Cash and cash equivalents
$ 341 
$ 299 
$ 445 
$ 267 
$ 10 
 
 
$ 14 
 
 
 
 
 
 
Long-term value added tax receivable
 
 
 
 
14 
 
 
 
 
 
 
 
 
 
Assets
4,388 
4,311 
 
 
86 
 
 
106 
 
 
 
 
 
 
Intangible assets
 
 
 
 
$ 8 
 
 
 
 
 
 
 
 
 
Subsidiary net sales as a percentage of consolidated net sales
 
 
 
 
2.00% 
2.00% 
 
4.00% 
3.00% 
 
 
 
 
 
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Jun. 30, 2013
Dec. 31, 2013
Commodity purchase contracts [Member]
Jun. 30, 2013
Commodity purchase contracts [Member]
Dec. 31, 2013
Interest rate contracts [Member]
Jun. 30, 2013
Interest rate contracts [Member]
Feb. 5, 2014
Interest rate contracts [Member]
Subsequent Event [Member]
Dec. 31, 2013
Foreign exchange contracts [Member]
Dec. 31, 2013
Jet Fuel [Member]
Commodity purchase contracts [Member]
Jun. 30, 2013
Jet Fuel [Member]
Commodity purchase contracts [Member]
Dec. 31, 2013
Soybean Oil [Member]
Commodity purchase contracts [Member]
Jun. 30, 2013
Soybean Oil [Member]
Commodity purchase contracts [Member]
Dec. 31, 2013
Canada [Member]
Foreign exchange contracts [Member]
Jun. 30, 2013
Canada [Member]
Foreign exchange contracts [Member]
Dec. 31, 2013
Australia [Member]
Foreign exchange contracts [Member]
Jun. 30, 2013
Australia [Member]
Foreign exchange contracts [Member]
Dec. 31, 2013
New Zealand [Member]
Foreign exchange contracts [Member]
Jun. 30, 2013
New Zealand [Member]
Foreign exchange contracts [Member]
Dec. 31, 2013
Economic Hedge of Foreign Exchange Risk [Member]
Foreign exchange contracts [Member]
Jun. 30, 2013
Economic Hedge of Foreign Exchange Risk [Member]
Foreign exchange contracts [Member]
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum contract duration
 
 
 
 
 
18 months 
 
12 months 
 
 
20 months 
 
 
 
 
 
 
 
 
 
 
 
 
Notional amount
 
 
 
 
 
$ 51 
$ 51 
$ 0 
$ 0 
$ 288 
 
$ 23 
$ 32 
$ 28 
$ 19 
$ 6 
$ 18 
$ 20 
$ 22 
$ 2 
$ 4 
$ 0 
$ 0 
Derivative instruments subject to contractually defined counterparty liability position limits
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated amount of the existing net loss to be reclassified into earnings, in the next 12 months, maximum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) from derivatives not designated as accounting hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-qualified deferred compensation plan assets, changes in fair value of trust assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of long-term debt
$ 2,238 
 
$ 2,238 
 
$ 2,263 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Financial Instruments Measured at Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Jun. 30, 2013
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Assets
$ 26 
$ 0 
Liabilities
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Assets
Liabilities
Other assets [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Trust assets for nonqualified deferred compensation plans
26 
Foreign exchange derivative contracts [Member] |
Other current assets [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Cash flow hedge derivative instrument assets, at fair value
Commodity purchase derivative contracts [Member] |
Other current assets [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Cash flow hedge derivative instrument assets, at fair value
Commodity purchase derivative contracts [Member] |
Accrued liabilities [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Cash flow hedge derivative instrument liabilities, at fair value
Commodity purchase derivative contracts [Member] |
Other liabilities [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Cash flow hedge derivative instrument liabilities, at fair value
$ 1 
$ 0 
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of the Effects of Derivative Instruments Designated as Hedging Instruments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (loss) recognized in OCI
$ 4 
$ 1 
$ 2 
$ 0 
Gain (loss) reclassified from OCI and recognized in earnings
(1)
(2)
Commodity purchase contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (loss) recognized in OCI
Interest rate contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (loss) recognized in OCI
(1)
Gain (loss) reclassified from OCI and recognized in earnings
(1)
(1)
(2)
(2)
Foreign exchange contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain (loss) recognized in OCI
(1)
Gain (loss) reclassified from OCI and recognized in earnings
$ 1 
$ 0 
$ 2 
$ 0