CLOROX CO /DE/, 10-Q filed on 5/3/2016
Quarterly Report
Document and Entity Information
9 Months Ended
Mar. 31, 2016
Apr. 19, 2016
Document and Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2016 
 
Entity Registrant Name
CLOROX CO /DE/ 
 
Entity Central Index Key
0000021076 
 
Current Fiscal Year End Date
--06-30 
 
Document Fiscal Period Focus
Q3 
 
Document Fiscal Year Focus
2016 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
129,340,425 
Condensed Consolidated Statements of Earnings and Comprehensive Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Condensed Consolidated Statements of Earnings and Comprehensive Income [Abstract]
 
 
 
 
Net sales
$ 1,426 
$ 1,401 
$ 4,161 
$ 4,098 
Cost of products sold
780 
796 
2,290 
2,343 
Gross profit
646 
605 
1,871 
1,755 
Selling and administrative expenses
204 
206 
581 
577 
Advertising costs
146 
124 
395 
372 
Research and development costs
35 
34 
99 
97 
Interest expense
22 
25 
67 
77 
Other (income) expense, net
(1)
(2)
Earnings from continuing operations before income taxes
237 
217 
731 
632 
Income taxes on continuing operations
78 
73 
248 
215 
Earnings from continuing operations
159 
144 
483 
417 
Earnings (losses) from discontinued operations, net of tax
30 
(28)
Net earnings
162 
174 
483 
389 
Basic net earnings (losses) per share
 
 
 
 
Continuing operations
$ 1.23 
$ 1.09 
$ 3.73 
$ 3.20 
Discontinued operations
$ 0.02 
$ 0.22 
$ 0.00 
$ (0.22)
Basic net earnings per share
$ 1.25 
$ 1.31 
$ 3.73 
$ 2.98 
Diluted net earnings (losses) per share
 
 
 
 
Continuing operations
$ 1.21 
$ 1.08 
$ 3.67 
$ 3.14 
Discontinued operations
$ 0.02 
$ 0.22 
$ 0.00 
$ (0.21)
Diluted net earnings per share
$ 1.23 
$ 1.30 
$ 3.67 
$ 2.93 
Weighted average shares outstanding (in thousands)
 
 
 
 
Basic
129,690 
131,833 
129,463 
130,566 
Diluted
131,647 
134,115 
131,652 
133,090 
Dividends declared per share
$ 0.77 
$ 0.74 
$ 2.31 
$ 2.22 
Comprehensive income
$ 181 
$ 146 
$ 443 
$ 325 
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Jun. 30, 2015
Current assets
 
 
Cash and cash equivalents
$ 414 
$ 382 
Receivables, net
530 
519 
Inventories, net
460 
385 
Other current assets
186 
143 
Total current assets
1,590 
1,429 
Property, plant and equipment, net of accumulated depreciation and amortization of $1,907 and $1,839, respectively
887 
918 
Goodwill
1,059 
1,067 
Trademarks, net
528 
535 
Other intangible assets, net
45 
50 
Other assets
175 
165 
Total assets
4,284 
4,164 
Current liabilities
 
 
Notes and loans payable
432 
95 
Current maturities of long-term debt
300 
Accounts payable
436 
431 
Accrued liabilities
519 
548 
Income taxes payable
31 
Total current liabilities
1,387 
1,405 
Long-term debt
1,796 
1,796 
Other liabilities
735 
750 
Deferred income taxes
107 
95 
Total liabilities
4,025 
4,046 
Commitments and 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 March 31, 2016 and June 30, 2015; and 129,296,653 and 128,614,310 shares outstanding at March 31, 2016 and June 30, 2015, respectively
159 
159 
Additional paid-in capital
846 
775 
Retained earnings
2,103 
1,923 
Treasury shares, at cost: 29,444,808 and 30,127,151 shares at March 31, 2016 and June 30, 2015, respectively
(2,307)
(2,237)
Accumulated other comprehensive net loss
(542)
(502)
Stockholders' equity
259 
118 
Total liabilities and stockholders' equity
$ 4,284 
$ 4,164 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Mar. 31, 2016
Jun. 30, 2015
Condensed Consolidated Balance Sheets [Abstract]
 
 
Property, plant and equipment, accumulated depreciation and amortization
$ 1,907 
$ 1,839 
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
129,296,653 
128,614,310 
Treasury shares, shares
29,444,808 
30,127,151 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Operating activities:
 
 
Net earnings
$ 483 
$ 389 
Deduct: Losses from discontinued operations, net of tax
(28)
Earnings from continuing operations
483 
417 
Adjustments to reconcile earnings from continuing operations to net cash provided by continuing operations:
 
 
Depreciation and amortization
122 
126 
Share-based compensation
33 
21 
Deferred income taxes
10 
(6)
Settlement of interest rate forward contracts
(25)
Other
(4)
(6)
Changes in:
 
 
Receivables, net
(24)
Inventories, net
(86)
(77)
Other current assets
(1)
Accounts payable and accrued liabilities
(2)
37 
Income taxes payable
(95)
(10)
Net cash provided by continuing operations
436 
481 
Net cash provided by discontinued operations
11 
14 
Net cash provided by operations
447 
495 
Investing activities:
 
 
Capital expenditures
(113)
(83)
Other
12 
Net cash used for investing activities
(101)
(80)
Financing activities:
 
 
Notes and loans payable, net
337 
(73)
Long-term debt borrowing, net of issuance costs
496 
Long-term debt repayments
(300)
(575)
Treasury stock purchased
(216)
(144)
Cash dividends paid
(298)
(288)
Issuance of common stock for employee stock plans and other
176 
236 
Net cash used for financing activities
(301)
(348)
Effect of exchange rate changes on cash and cash equivalents
(13)
(18)
Net increase in cash and cash equivalents
32 
49 
Cash and cash equivalents:
 
 
Beginning of period
382 
329 
End of period
$ 414 
$ 378 
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 nine months ended March 31, 2016 and 2015, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its subsidiaries (the Company) for the periods presented. However, the financial results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period.

Effective September 22, 2014, the Company's Venezuela affiliate, Corporación Clorox de Venezuela S.A. (Clorox Venezuela), discontinued its operations. Consequently, the Company reclassified the financial results of Clorox Venezuela as a discontinued operation in the condensed consolidated financial statements for all periods presented herein.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The information in this report should be read in conjunction with the Company's Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2015, which includes a complete set of footnote disclosures including the Company's significant accounting policies.


Recently Issued Accounting Standards

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions, including requiring excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement and excess tax benefits to be classified as an operating activity. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation will depend on classification as a finance or operating lease. ASU 2016-02 also requires expanded disclosures about leasing arrangements. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which requires all deferred tax liabilities and assets to be classified as noncurrent. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company does not expect the adoption of this guidance will have a significant impact on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Cost,” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2017, with early adoption permitted. The Company does not expect the adoption of this guidance will have a significant impact on its consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis,” which changes the guidance for evaluating whether to consolidate certain legal entities. The amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which replaces most existing U.S. GAAP revenue recognition guidance and is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers, including information about significant judgments and changes in judgments. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with the option to early adopt in the first quarter of fiscal year 2018. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS

NOTE 2. DISCONTINUED OPERATIONS

On September 22, 2014, Clorox Venezuela announced that it was discontinuing its operations, effective immediately, and seeking to sell its assets. Since fiscal year 2012, Clorox Venezuela was required to sell more than two thirds of its products at prices frozen by the Venezuelan government. During this same period, Clorox Venezuela experienced successive years of hyperinflation resulting in significant sustained increases in its input costs, including packaging, raw materials, transportation and wages. As a result, Clorox Venezuela had been selling its products at a loss, resulting in ongoing operating losses. Clorox Venezuela repeatedly met with government authorities in an effort to help them understand the rapidly declining state of the business, including the need for immediate, significant and ongoing price increases and other critical remedial actions to address these adverse impacts. Based on the Venezuelan government's representations, Clorox Venezuela had expected significant price increases would be forthcoming much earlier; however, the price increases subsequently approved were insufficient and would have caused Clorox Venezuela to continue operating at a significant loss into the foreseeable future. As such, Clorox Venezuela was no longer financially viable and was forced to discontinue its operations.

On September 26, 2014, the Company reported that Venezuelan Vice President Jorge Arreaza announced, with endorsement by President Nicolás Maduro, that the Venezuelan government had occupied the Santa Lucía and Guacara production facilities of Clorox Venezuela. On November 6, 2014, the Company reported that the Venezuelan government had published a resolution granting a government-sponsored Special Administrative Board full authority to restart and operate the business of Clorox Venezuela, thereby reaffirming the government's expropriation of Clorox Venezuela's assets. Further, President Nicolás Maduro announced the government's intention to facilitate the resumed production of bleach and other cleaning products at Clorox Venezuela plants. He also announced his approval of a financial credit to invest in raw materials and production at the plants. These actions by the Venezuelan government were taken without the consent or involvement of Clorox Venezuela, its parent Clorox Spain S.L. (Clorox Spain) or any of their affiliates. Clorox Venezuela, Clorox Spain and their affiliates reserved their rights under all applicable laws and treaties.

With this exit, the financial results of Clorox Venezuela are reflected as discontinued operations in the Company's condensed consolidated financial statements for all periods presented. The results of Clorox Venezuela have historically been part of the International reportable segment.

Net sales for Clorox Venezuela were $0 for both the three and nine months ended March 31, 2016, and $0 and $11 for the three and nine months ended March 31, 2015, respectively.

The following table provides a summary of earnings (losses) from discontinued operations for Clorox Venezuela and earnings (losses) from discontinued operations other than Clorox Venezuela for the periods indicated:

Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Operating losses from Clorox Venezuela before income taxes $ - $ - $ -   $ (6 )
Exit costs and other related expenses for Clorox Venezuela         (1 ) -         (2 )         (77 )
Total losses from Clorox Venezuela before income taxes (1 )   -   (2 ) (83 )
Income tax benefit attributable to Clorox Venezuela 2 - 2 25
Total earnings (losses) from Clorox Venezuela, net of tax 1 - - (58 )
 
Earnings from discontinued operations
       other than Clorox Venezuela, net of tax   2             30   -   30
Earnings (losses) from discontinued operations, net of tax $ 3 $ 30 $ -   $ (28 )


Unrelated to Clorox Venezuela, in the three months ended March 31, 2015, $30 of gross unrecognized tax benefits relating to other discontinued operations for periods prior to fiscal year 2015 were recognized upon the expiration of the applicable statute of limitations. Recognition of these previously disclosed tax benefits had no impact on the Company's cash flow or earnings from continuing operations for the three or nine months ended March 31, 2015.

INVENTORIES, NET
INVENTORIES

NOTE 3. INVENTORIES, NET

Inventories, net, consisted of the following as of:

3/31/2016       6/30/2015
Finished goods $ 379 $ 316
Raw materials and packaging   110 101
Work in process 2     3
LIFO allowances (31 )   (35 )
Total $        460 $        385


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

NOTE 4. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

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 2 years, are matched to the length of the raw material purchase contracts. Commodity purchase contracts are measured at fair value using market quotations obtained from commodity futures exchanges or commodity derivative dealers.

As of March 31, 2016, the notional amount of commodity derivatives was $40, of which $21 related to jet fuel swaps and $19 related to soybean oil futures. As of June 30, 2015, the notional amount of commodity derivatives was $47, of which $27 related to jet fuel swaps and $20 related to soybean oil futures.

Interest Rate Risk Management

The Company may also enter into over-the-counter interest rate derivative instruments to fix a portion of the benchmark interest rate prior to an anticipated issuance of fixed rate debt or to manage the Company's level of fixed and floating rate debt. The interest rate derivative instruments are measured at fair value using information quoted by U.S. government bond dealers.

As of both March 31, 2016 and June 30, 2015, the Company had no interest rate derivative instruments.

Foreign Currency Risk Management

The Company may also enter into certain over-the-counter derivative contracts to manage a portion of the Company's forecasted foreign currency exposure associated with the purchase of inventory. These foreign currency contracts generally have durations of no longer than 2 years. The foreign exchange contracts are measured at fair value using information quoted by foreign exchange dealers.

The notional amount of outstanding foreign currency forward contracts used by the Company's subsidiaries in Canada, Australia and New Zealand were $58, $40 and $8, respectively, as of March 31, 2016, and $64, $35 and $6, respectively, as of June 30, 2015.

Counterparty Risk Management and Derivative Contract Requirements

The Company utilizes a variety of financial institutions as counterparties for over-the counter derivative instruments. The Company enters into agreements governing the use of over-the-counter derivative instruments and sets internal limits on the aggregate over-the-counter derivative instrument positions held with each counterparty. Certain terms of these agreements require the Company or the counterparty to post collateral when the fair value of the derivative instrument exceeds contractually defined counterparty liability position limits. Of the derivative instruments of $9 and $8 reflected in accrued liabilities and other liabilities as of March 31, 2016 and June 30, 2015, respectively, $8 and $8, respectively, contained such terms. As of both March 31, 2016 and June 30, 2015, neither the Company nor any counterparty was required to post any collateral as no counterparty liability position limits were exceeded.

Certain terms of the agreements governing the Company's over-the-counter derivative instruments require the credit ratings, as assigned by Standard & Poor's and Moody's to the Company and its counterparties, to remain at a level equal to or better than the minimum of an investment grade credit rating. If the Company's credit ratings were to fall below investment grade, the counterparties to the derivative instruments could request full collateralization on derivative instruments in net liability positions. As of both March 31, 2016 and June 30, 2015, the Company and each of its counterparties had been assigned investment grade credit ratings by both Standard & Poor's and Moody's.

Certain of the Company's exchange-traded futures contracts used for commodity price risk management include requirements for the Company to post collateral in the form of a cash margin account held by the Company's broker for trades conducted on that exchange. As of March 31, 2016 and June 30, 2015, the Company maintained cash margin balances related to exchange-traded futures contracts of $1 and $2, respectively, which are classified as other current assets on the condensed consolidated balance sheets.

Trust Assets

The Company has held interests in mutual funds and cash equivalents as part of trust assets related to certain of its nonqualified deferred compensation plans. The participants in the deferred compensation plans may select among certain mutual funds in which their compensation deferrals are invested in accordance with the terms of the plans and within the confines of the trusts which hold the marketable securities. These trusts represent variable interest entities for which the Company is considered the primary beneficiary, and therefore, trust assets are consolidated and included in other assets in the condensed consolidated balance sheets. The interests in mutual funds are measured at fair value using quoted market prices. The Company has designated these marketable securities as trading investments.

Fair Value Measurements

Financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets are required to be classified and disclosed in one of the following three categories of the fair value hierarchy:

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

As of March 31, 2016 and June 30, 2015, the Company's financial assets and liabilities that were measured at fair value on a recurring basis during the applicable periods included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund certain of the Company's nonqualified deferred compensation plans, which were classified as Level 1.

The following table summarizes the fair value of the Company's financial assets and liabilities for which disclosure of fair value is required:

3/31/2016 6/30/2015
    Balance sheet
classification
    Fair value
hierarchy
level
    Carrying
Amount
    Estimated
Fair
Value
    Carrying
Amount
    Estimated
Fair
Value
Assets
Investments including money market Cash and cash
funds equivalents (a) 1 $ 232 $ 232 $ 212 $ 212
Cash and cash
Time deposits equivalents (a) 2 86 86 84 84
Commodity purchase derivative contracts   Other current assets 1 3 3 - -
Foreign exchange derivative contracts Other current assets 2 - - 1 1
Trust assets for nonqualified deferred Other assets 1 50 50 38 38
compensation plans
$ 371 $ 371 $ 335 $ 335
 
Liabilities
Notes and loans
Notes and loans payable payable (b) 2 $ 432 $ 432 $ 95 $ 95
Commodity purchase derivative contracts   Accrued liabilities 2 5 5 8 8
Foreign exchange derivative contracts Accrued liabilities 2 3 3 - -
Foreign exchange derivative contracts Other liabilities 2 1 1 - -
 
  Current maturities of    
Current maturities of long-term   long-term debt and                
debt and Long-term debt Long-term debt (c) 2 1,796 1,885 2,096 2,137
 
$      2,237 $      2,326 $      2,199 $      2,240
____________________


(a) Cash and cash equivalents are composed of time deposits and other interest bearing investments including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value.
(b) Notes and loans payable is composed of U.S. commercial paper and/or other similar short-term debts issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value.
(c) Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of long-term debt, including current maturities, is determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2.

Commodity, Interest Rate and Foreign Exchange Derivatives

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 effects of derivative instruments designated as hedging instruments on comprehensive income and net earnings were as follows:

Gains (losses) recognized in comprehensive income
Three Months Ended Nine Months Ended
3/31/2016 3/31/2015       3/31/2016       3/31/2015
Commodity purchase derivative contracts $ 3       $ - $ (4 ) $ (16 )
Interest rate derivative contracts - - - (12 )
Foreign exchange derivative contracts              (9 ) 2 (4 ) 7
Total $ (6 ) $ 2 $ (8 ) $ (21 )
 
Gains (losses) reclassified from accumulated other comprehensive loss and
recognized in net earnings
Three Months Ended Nine Months Ended
3/31/2016 3/31/2015 3/31/2016 3/31/2015
Commodity purchase derivative contracts $ (4 ) $              (3 ) $ (9 )   $ (3 )
Interest rate derivative contracts (2 )   -     (5 ) (3 )
Foreign exchange derivative contracts   1   - 1 -
Total $ (5 ) $ (3 ) $              (13 ) $              (6 )


The gains (losses) reclassified from accumulated other comprehensive loss and recognized in net earnings during the three and nine months ended March 31, 2016 and 2015, for commodity purchase and foreign exchange contracts were included in cost of products sold, and for interest rate contracts were included in interest expense.

The estimated amount of the existing net gain (loss) in accumulated other comprehensive losses as of March 31, 2016, that is expected to be reclassified into net earnings within the next twelve months is $(16). 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 nine months ended March 31, 2016 and 2015, hedge ineffectiveness was not significant.

DEBT
DEBT

NOTE 5. DEBT

In November 2015, $300 of the Company's senior notes with an annual fixed interest rate of 3.55% became due and were repaid using commercial paper borrowings and cash on hand.

INCOME TAXES
INCOME TAXES

NOTE 6. INCOME TAXES

In determining its quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The effective tax rate on earnings from continuing operations was 33.0% and 34.0% for the current three and nine months ended March 31, 2016, and 33.4% and 34.0% for the three and nine months ended March 31, 2015, respectively.

NET EARNINGS PER SHARE (EPS)
NET EARNINGS PER SHARE (EPS)

NOTE 7. NET EARNINGS PER SHARE (EPS)

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

Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Basic      129,690      131,833        129,463      130,566
Dilutive effect of stock options and other 1,957   2,282 2,189   2,524
Diluted 131,647 134,115 131,652 133,090
 
Antidilutive stock options and other(a) 14 13 40 269
____________________

(a) Shares are considered antidilutive if the impact of their conversion would cause an increase in earnings per share amounts or a decrease in loss per share amounts.

The Company has two share repurchase programs: an open-market purchase program with an authorized aggregate purchase amount of up to $750, all of which was available for share repurchases as of March 31, 2016, and a program to offset the anticipated impact of share dilution related to share-based awards (the Evergreen Program), which has no specified cap. During the three and nine months ended March 31, 2016, the Company repurchased approximately 0.6 million shares and 1.9 million shares, respectively, under its Evergreen Program for an aggregate cost of $74 and $218, respectively. During the three and nine months ended March 31, 2015, the Company repurchased 1.4 and 1.5 million shares, respectively, under its Evergreen Program for an aggregate amount of $150 and $158, respectively. The Company did not repurchase any shares under the open-market purchase program during the three and nine months ended March 31, 2016 and 2015.

COMPREHENSIVE INCOME
COMPREHENSIVE INCOME

NOTE 8. COMPREHENSIVE INCOME

Comprehensive income was as follows for the periods indicated:

Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Earnings from continuing operations $ 159 $ 144 $ 483 $ 417
Earnings (losses) from discontinued operations, net of tax 3 30 - (28 )
Net earnings 162 174 483 389
Other comprehensive income (loss), net of tax:  
       Foreign currency translation adjustments   20 (32 ) (47 ) (51 )
       Net unrealized gains (losses) on derivatives (1 )   3       4 (17 )
       Pension and postretirement benefit adjustments - 1 3 4
Total other comprehensive income (loss), net of tax 19 (28 ) (40 )   (64 )
Comprehensive income $           181 $           146 $           443 $           325

Changes in accumulated other comprehensive net loss by component were as follows:

Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Foreign currency adjustments
              Other comprehensive gains (losses) before reclassifications $ 21 $ (33 ) $ (40 ) $ (88 )
              Reclassification of (gains) losses into earnings:
                     Recognition of deferred foreign currency translation loss - - - 30
              Income tax benefit (expense) (1 ) 1 (7 ) 7
       Foreign currency adjustments, net of tax $ 20 $ (32 ) $ (47 ) $ (51 )
 
Net unrealized gains (losses) on derivatives
              Other comprehensive gains (losses) before reclassifications $ (6 ) $ 2 $ (8 ) $ (21 )
              Reclassification of (gains) losses into earnings 5 3 13 6
              Income tax benefit (expense) - (2 ) (1 ) (2 )
       Net unrealized gains (losses) on derivatives, net of tax $ (1 ) $ 3 $ 4 $ (17 )
 
Pension and postretirement benefit adjustments
              Other comprehensive gains (losses) before reclassifications $ - $ - $ - $ (2 )
              Reclassification of (gains) losses into earnings 1 2 4 7
              Income tax benefit (expense) (1 ) (1 ) (1 ) (1 )
       Pension and postretirement benefit adjustments, net of tax $ -   $ 1 $ 3 $ 4
                 
Total other comprehensive income (loss), net of tax $             19 $             (28 ) $             (40 ) $             (64 )


Included in foreign currency adjustments are re-measurement losses on long-term intercompany loans where settlement is not planned or anticipated in the foreseeable future. For the three and nine months ended March 31, 2016, other comprehensive net income (loss) on these loans totaled $0 and $(11), respectively. For the three and nine months ended March 31, 2015, other comprehensive net income (loss) on these loans totaled $(4) and $(8), respectively. There were no amounts reclassified from accumulated other comprehensive net loss for the periods presented related to long-term intercompany loans where settlement is not planned or anticipated in the foreseeable future.

EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS

NOTE 9. EMPLOYEE BENEFIT PLANS

The following table summarizes the components of net periodic benefit cost for the Company's retirement income plans:

Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Service cost $ 1 $ -   $ 1 $ 1
Interest cost 6     7   19   19
Expected return on plan assets               (4 )               (5 )               (13 )               (15 )
Amortization of unrecognized items 2 3 7 9  
Total $ 5 $ 5 $ 14 $ 14


The net periodic benefit cost for the Company's retirement health care plans was a credit of $1 for both the three and nine months ended March 31, 2016, and a credit of $1 and $2 for the three and nine months ended March 31, 2015, respectively.

In the three and nine months ended March 31, 2016, the Company made $0 and $15 in discretionary contributions to the domestic qualified retirement income plan, respectively.

OTHER CONTINGENCIES AND GUARANTEES
OTHER CONTINGENCIES AND GUARANTEES

NOTE 10. OTHER 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 $13 and $12 as of March 31, 2016 and June 30, 2015, 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 March 31, 2016 and June 30, 2015. 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.

The Company is subject to various legal proceedings, claims and other loss contingencies, including, without limitation, loss contingencies relating to contractual arrangements, product liability, patents and trademarks, advertising, labor and employment, environmental, health and safety and other matters. With respect to these proceedings, claims and other loss contingencies, while considerable uncertainty exists, in the opinion of management at this time, the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, either individually or in the aggregate, on the Company's condensed consolidated financial statements taken as a whole.

Guarantees

In conjunction with divestitures and other transactions, the Company may provide typical indemnifications (e.g., indemnifications for representations and warranties and retention of previously existing environmental, tax and employee liabilities) that have terms that vary in duration and in the potential amount of the total obligation and, in many circumstances, are not explicitly defined. The Company has not made, nor does it believe that it is probable that it will make, any payments relating to its indemnifications, and believes that any reasonably possible payments would not have a material adverse effect, either individually or in the aggregate, on the Company's condensed consolidated financial statements taken as a whole.

The Company had not recorded any liabilities on the aforementioned guarantees as of March 31, 2016.

As of March 31, 2016, the Company was a party to letters of credit of $10 primarily related to one of its insurance carriers, of which $0 had been drawn upon.

SEGMENT RESULTS
SEGMENT RESULTS

NOTE 11. SEGMENT RESULTS

The Company operates through strategic business units that are aggregated into four reportable segments: Cleaning, Household, Lifestyle and International. As a result of Clorox Venezuela being reported as discontinued operations, the results of Clorox Venezuela are no longer included in the International reportable segment.

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 Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Cleaning $ 465 $ 442 $ 1,419 $ 1,359
Household   467 451 1,253 1,214
Lifestyle 254 243   736   705
International 240 265   753 820
Corporate -     - -   -
Total $          1,426 $          1,401 $          4,161 $          4,098


Earnings (losses) from continuing operations before income taxes
Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Cleaning $ 122 $ 100 $ 394 $ 331
Household 113 102 262 205
Lifestyle 70       71   201   200
International   11 17     65     67
Corporate (79 ) (73 )          (191 )          (171 )
Total $          237 $          217 $ 731 $ 632


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 condensed consolidated net sales, were 27% for each of the three and nine months ended March 31, 2016, and 27% and 26% for the three and nine months ended March 31, 2015, respectively.

SUBSEQUENT EVENTS
Subsequent Events [Text Block]

NOTE 12. SUBSEQUENT EVENTS

On May 2, 2016, the Company acquired 100 percent of Renew Life Holdings Corporation (Renew Life), a leading brand in dietary health, with an emphasis on digestive health. Renew Life was founded in 1997, and is based in Palm Harbor, Florida. The total purchase price was approximately $290, but may ultimately be adjusted for any cash acquired, working capital adjustments and any amounts to be paid by the Company pending final cash settlements. Results for Renew Life's domestic business will be reflected in the Household reportable segment and results for Renew Life's international business will be reflected in the International reportable segment.

Purchase accounting for this acquisition will be included in the Company's fourth quarter results subject to customary closing adjustments. Pro forma results reflecting the acquisition will not be presented because the acquisition is not significant to the Company's consolidated financial results.

INTERIM FINANCIAL STATEMENTS (Policy)

Basis of Presentation

The unaudited interim condensed consolidated financial statements for the three and nine months ended March 31, 2016 and 2015, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the consolidated results of operations, financial position and cash flows of The Clorox Company and its subsidiaries (the Company) for the periods presented. However, the financial results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period.

Effective September 22, 2014, the Company's Venezuela affiliate, Corporación Clorox de Venezuela S.A. (Clorox Venezuela), discontinued its operations. Consequently, the Company reclassified the financial results of Clorox Venezuela as a discontinued operation in the condensed consolidated financial statements for all periods presented herein.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) have been omitted or condensed pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The information in this report should be read in conjunction with the Company's Annual Report on Form 10-K filed with the SEC for the fiscal year ended June 30, 2015, which includes a complete set of footnote disclosures including the Company's significant accounting policies.

Recently Issued Accounting Standards

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions, including requiring excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement and excess tax benefits to be classified as an operating activity. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation will depend on classification as a finance or operating lease. ASU 2016-02 also requires expanded disclosures about leasing arrangements. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which requires all deferred tax liabilities and assets to be classified as noncurrent. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company does not expect the adoption of this guidance will have a significant impact on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Cost,” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2017, with early adoption permitted. The Company does not expect the adoption of this guidance will have a significant impact on its consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis,” which changes the guidance for evaluating whether to consolidate certain legal entities. The amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which replaces most existing U.S. GAAP revenue recognition guidance and is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers, including information about significant judgments and changes in judgments. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with the option to early adopt in the first quarter of fiscal year 2018. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

DISCONTINUED OPERATIONS (Tables)
Summary of Earnings (Losses) from Discontinued Operations
Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Operating losses from Clorox Venezuela before income taxes $ - $ - $ -   $ (6 )
Exit costs and other related expenses for Clorox Venezuela         (1 ) -         (2 )         (77 )
Total losses from Clorox Venezuela before income taxes (1 )   -   (2 ) (83 )
Income tax benefit attributable to Clorox Venezuela 2 - 2 25
Total earnings (losses) from Clorox Venezuela, net of tax 1 - - (58 )
 
Earnings from discontinued operations
       other than Clorox Venezuela, net of tax   2             30   -   30
Earnings (losses) from discontinued operations, net of tax $ 3 $ 30 $ -   $ (28 )


INVENTORIES, NET (Tables)
Schedule of Inventories
3/31/2016       6/30/2015
Finished goods $ 379 $ 316
Raw materials and packaging   110 101
Work in process 2     3
LIFO allowances (31 )   (35 )
Total $        460 $        385
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
3/31/2016 6/30/2015
    Balance sheet
classification
    Fair value
hierarchy
level
    Carrying
Amount
    Estimated
Fair
Value
    Carrying
Amount
    Estimated
Fair
Value
Assets
Investments including money market Cash and cash
funds equivalents (a) 1 $ 232 $ 232 $ 212 $ 212
Cash and cash
Time deposits equivalents (a) 2 86 86 84 84
Commodity purchase derivative contracts   Other current assets 1 3 3 - -
Foreign exchange derivative contracts Other current assets 2 - - 1 1
Trust assets for nonqualified deferred Other assets 1 50 50 38 38
compensation plans
$ 371 $ 371 $ 335 $ 335
 
Liabilities
Notes and loans
Notes and loans payable payable (b) 2 $ 432 $ 432 $ 95 $ 95
Commodity purchase derivative contracts   Accrued liabilities 2 5 5 8 8
Foreign exchange derivative contracts Accrued liabilities 2 3 3 - -
Foreign exchange derivative contracts Other liabilities 2 1 1 - -
 
  Current maturities of    
Current maturities of long-term   long-term debt and                
debt and Long-term debt Long-term debt (c) 2 1,796 1,885 2,096 2,137
 
$      2,237 $      2,326 $      2,199 $      2,240
____________________


(a) Cash and cash equivalents are composed of time deposits and other interest bearing investments including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value.
(b) Notes and loans payable is composed of U.S. commercial paper and/or other similar short-term debts issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value.
(c) Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of long-term debt, including current maturities, is determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2.
Gains (losses) recognized in comprehensive income
Three Months Ended Nine Months Ended
3/31/2016 3/31/2015       3/31/2016       3/31/2015
Commodity purchase derivative contracts $ 3       $ - $ (4 ) $ (16 )
Interest rate derivative contracts - - - (12 )
Foreign exchange derivative contracts              (9 ) 2 (4 ) 7
Total $ (6 ) $ 2 $ (8 ) $ (21 )
 
Gains (losses) reclassified from accumulated other comprehensive loss and
recognized in net earnings
Three Months Ended Nine Months Ended
3/31/2016 3/31/2015 3/31/2016 3/31/2015
Commodity purchase derivative contracts $ (4 ) $              (3 ) $ (9 )   $ (3 )
Interest rate derivative contracts (2 )   -     (5 ) (3 )
Foreign exchange derivative contracts   1   - 1 -
Total $ (5 ) $ (3 ) $              (13 ) $              (6 )
NET EARNINGS PER SHARE (EPS) (Tables)
Schedule of Weighted Average Number of Shares
Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Basic      129,690      131,833        129,463      130,566
Dilutive effect of stock options and other 1,957   2,282 2,189   2,524
Diluted 131,647 134,115 131,652 133,090
 
Antidilutive stock options and other(a) 14 13 40 269
____________________

(a) Shares are considered antidilutive if the impact of their conversion would cause an increase in earnings per share amounts or a decrease in loss per share amounts.

COMPREHENSIVE INCOME (Tables)
Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Earnings from continuing operations $ 159 $ 144 $ 483 $ 417
Earnings (losses) from discontinued operations, net of tax 3 30 - (28 )
Net earnings 162 174 483 389
Other comprehensive income (loss), net of tax:  
       Foreign currency translation adjustments   20 (32 ) (47 ) (51 )
       Net unrealized gains (losses) on derivatives (1 )   3       4 (17 )
       Pension and postretirement benefit adjustments - 1 3 4
Total other comprehensive income (loss), net of tax 19 (28 ) (40 )   (64 )
Comprehensive income $           181 $           146 $           443 $           325
Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Foreign currency adjustments
              Other comprehensive gains (losses) before reclassifications $ 21 $ (33 ) $ (40 ) $ (88 )
              Reclassification of (gains) losses into earnings:
                     Recognition of deferred foreign currency translation loss - - - 30
              Income tax benefit (expense) (1 ) 1 (7 ) 7
       Foreign currency adjustments, net of tax $ 20 $ (32 ) $ (47 ) $ (51 )
 
Net unrealized gains (losses) on derivatives
              Other comprehensive gains (losses) before reclassifications $ (6 ) $ 2 $ (8 ) $ (21 )
              Reclassification of (gains) losses into earnings 5 3 13 6
              Income tax benefit (expense) - (2 ) (1 ) (2 )
       Net unrealized gains (losses) on derivatives, net of tax $ (1 ) $ 3 $ 4 $ (17 )
 
Pension and postretirement benefit adjustments
              Other comprehensive gains (losses) before reclassifications $ - $ - $ - $ (2 )
              Reclassification of (gains) losses into earnings 1 2 4 7
              Income tax benefit (expense) (1 ) (1 ) (1 ) (1 )
       Pension and postretirement benefit adjustments, net of tax $ -   $ 1 $ 3 $ 4
                 
Total other comprehensive income (loss), net of tax $             19 $             (28 ) $             (40 ) $             (64 )


EMPLOYEE BENEFIT PLANS (Tables)
Schedule of Components of Net Periodic Benefit Cost
Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Service cost $ 1 $ -   $ 1 $ 1
Interest cost 6     7   19   19
Expected return on plan assets               (4 )               (5 )               (13 )               (15 )
Amortization of unrecognized items 2 3 7 9  
Total $ 5 $ 5 $ 14 $ 14


SEGMENT RESULTS (Tables)
Schedule of Segment Reporting Information


Net sales
Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Cleaning $ 465 $ 442 $ 1,419 $ 1,359
Household   467 451 1,253 1,214
Lifestyle 254 243   736   705
International 240 265   753 820
Corporate -     - -   -
Total $          1,426 $          1,401 $          4,161 $          4,098


Earnings (losses) from continuing operations before income taxes
Three Months Ended Nine Months Ended
3/31/2016       3/31/2015       3/31/2016       3/31/2015
Cleaning $ 122 $ 100 $ 394 $ 331
Household 113 102 262 205
Lifestyle 70       71   201   200
International   11 17     65     67
Corporate (79 ) (73 )          (191 )          (171 )
Total $          237 $          217 $ 731 $ 632


DISCONTINUED OPERATIONS (Summary of Losses from Discontinued Operations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Earnings (losses) from discontinued operations, net of tax
$ 3 
$ 30 
$ 0 
$ (28)
Clorox Venezuela [Member]
 
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Net sales
11 
Operating losses from discontinued operations before income taxes
(6)
Exit costs and other related expenses
(1)
(2)
(77)
Total losses from discontinued operations before income taxes
(1)
(2)
(83)
Income tax benefit
25 
Earnings (losses) from discontinued operations, net of tax
(58)
Other Discontinued Operations [Member]
 
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Earnings (losses) from discontinued operations, net of tax
30 
30 
Gross unrecognized tax benefits recognized upon the expiration of the applicable statute of limitations
 
$ 30 
 
 
INVENTORIES, NET (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Jun. 30, 2015
INVENTORIES [Abstract]
 
 
Finished goods
$ 379 
$ 316 
Raw materials and packaging
110 
101 
Work in process
LIFO allowances
(31)
(35)
Total
$ 460 
$ 385 
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Mar. 31, 2016
Jun. 30, 2015
Derivative [Line Items]
 
 
Derivatives
$ 9 
$ 8 
Derivative instruments subject to contractually defined counterparty liability position limits
Estimated amount of the existing net gain (loss) to be reclassified into earnings in the next 12 months
(16)
 
Cash margin balances
Commodity Purchase Derivative Contracts [Member]
 
 
Derivative [Line Items]
 
 
Maximum contract duration
2 years 
 
Notional amount
40 
47 
Foreign Exchange Derivative Contracts [Member]
 
 
Derivative [Line Items]
 
 
Maximum contract duration
2 years 
 
Soybean Oil [Member] |
Commodity Purchase Derivative Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amount
19 
20 
Jet Fuel [Member] |
Commodity Purchase Derivative Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amount
21 
27 
Australia [Member] |
Foreign Exchange Derivative Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amount
40 
35 
Canada [Member] |
Foreign Exchange Derivative Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amount
58 
64 
New Zealand [Member] |
Foreign Exchange Derivative Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amount
$ 8 
$ 6 
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Schedule of Financial Instruments Measured at Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Jun. 30, 2015
Carrying Value [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Assets
$ 371 
$ 335 
Liabilities
2,237 
2,199 
Estimated Fair Value [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Assets
371 
335 
Liabilities
2,326 
2,240 
Cash and cash Equivalents [Member] |
Level 1 [Member] |
Carrying Value [Member] |
Investments including money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Investments
232 1
212 1
Cash and cash Equivalents [Member] |
Level 1 [Member] |
Estimated Fair Value [Member] |
Investments including money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Investments
232 1
212 1
Cash and cash Equivalents [Member] |
Level 2 [Member] |
Carrying Value [Member] |
Time deposits [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Investments
86 1
84 1
Cash and cash Equivalents [Member] |
Level 2 [Member] |
Estimated Fair Value [Member] |
Time deposits [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Investments
86 1
84 1
Other Current Assets [Member] |
Level 1 [Member] |
Carrying Value [Member] |
Commodity purchase derivative contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative assets designated as hedging instruments
Other Current Assets [Member] |
Level 1 [Member] |
Estimated Fair Value [Member] |
Commodity purchase derivative contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative assets designated as hedging instruments
Other Current Assets [Member] |
Level 2 [Member] |
Carrying Value [Member] |
Foreign exchange derivative contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative assets designated as hedging instruments
Other Current Assets [Member] |
Level 2 [Member] |
Estimated Fair Value [Member] |
Foreign exchange derivative contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative assets designated as hedging instruments
Other assets [Member] |
Level 1 [Member] |
Carrying Value [Member] |
Trust assets for nonqualified deferred compensation plans [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Investments
50 
38 
Other assets [Member] |
Level 1 [Member] |
Estimated Fair Value [Member] |
Trust assets for nonqualified deferred compensation plans [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Investments
50 
38 
Notes and loans payable [Member] |
Level 2 [Member] |
Carrying Value [Member] |
Notes and loans payable [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Debt
432 2
95 2
Notes and loans payable [Member] |
Level 2 [Member] |
Estimated Fair Value [Member] |
Notes and loans payable [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Debt
432 2
95 2
Accrued Liabilities [Member] |
Level 2 [Member] |
Carrying Value [Member] |
Commodity purchase derivative contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative liabilities designated as hedging instruments
Accrued Liabilities [Member] |
Level 2 [Member] |
Carrying Value [Member] |
Foreign exchange derivative contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative liabilities designated as hedging instruments
Accrued Liabilities [Member] |
Level 2 [Member] |
Estimated Fair Value [Member] |
Commodity purchase derivative contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative liabilities designated as hedging instruments
Accrued Liabilities [Member] |
Level 2 [Member] |
Estimated Fair Value [Member] |
Foreign exchange derivative contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative liabilities designated as hedging instruments
Other liabilities [Member] |
Level 2 [Member] |
Carrying Value [Member] |
Foreign exchange derivative contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative liabilities designated as hedging instruments
Other liabilities [Member] |
Level 2 [Member] |
Estimated Fair Value [Member] |
Foreign exchange derivative contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Derivative liabilities designated as hedging instruments
Current maturities of long-term debt and Long-term debt [Member] |
Level 2 [Member] |
Carrying Value [Member] |
Current maturities of long-term debt and Long-term debt [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Debt
1,796 3
2,096 3
Current maturities of long-term debt and Long-term debt [Member] |
Level 2 [Member] |
Estimated Fair Value [Member] |
Current maturities of long-term debt and Long-term debt [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
 
 
Debt
$ 1,885 3
$ 2,137 3
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 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gains (losses) recognized in comprehensive income
$ (6)
$ 2 
$ (8)
$ (21)
Gains (losses) reclassified from accumulated other comprehensive loss and recognized in net earnings
(5)
(3)
(13)
(6)
Commodity Purchase Derivative Contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gains (losses) recognized in comprehensive income
(4)
(16)
Gains (losses) reclassified from accumulated other comprehensive loss and recognized in net earnings
(4)
(3)
(9)
(3)
Interest Rate Derivative Contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gains (losses) recognized in comprehensive income
(12)
Gains (losses) reclassified from accumulated other comprehensive loss and recognized in net earnings
(2)
(5)
(3)
Foreign Exchange Derivative Contracts [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gains (losses) recognized in comprehensive income
(9)
(4)
Gains (losses) reclassified from accumulated other comprehensive loss and recognized in net earnings
$ 1 
$ 0 
$ 1 
$ 0 
DEBT (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 1 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Nov. 30, 2015
Senior Notes [Member]
DEBT [Line Items]
 
 
 
Repayments of Long-term Debt
$ 300 
$ 575 
$ 300 
Annual fixed interest rate (as a percent)
 
 
3.55% 
INCOME TAXES (Details)
3 Months Ended 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
INCOME TAXES [Abstract]
 
 
 
 
Effective tax rate on earnings from continuing operations
33.00% 
33.40% 
34.00% 
34.00% 
NET EARNINGS PER SHARE (EPS) (Schedule of Weighted Average Number of Shares) (Details)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
NET EARNINGS PER SHARE (EPS) [Abstract]
 
 
 
 
Basic
129,690 
131,833 
129,463 
130,566 
Dilutive effect of stock options and other
1,957 
2,282 
2,189 
2,524 
Diluted
131,647 
134,115 
131,652 
133,090 
Antidilutive stock options and other
14 1
13 1
40 1
269 1
NET EARNINGS PER SHARE (EPS) (Share Repurchase Programs) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Open-market [Member]
 
 
 
 
Share Repurchase Programs [Line Items]
 
 
 
 
Authorized repurchase amount
$ 750 
 
$ 750 
 
Remaining authorized repurchase amount
750 
 
750 
 
Shares repurchased
Value of shares repurchased
Evergreen Program [Member]
 
 
 
 
Share Repurchase Programs [Line Items]
 
 
 
 
Shares repurchased
0.6 
1.4 
1.9 
1.5 
Value of shares repurchased
$ 74 
$ 150 
$ 218 
$ 158 
COMPREHENSIVE INCOME (Schedule of Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
COMPREHENSIVE INCOME [Abstract]
 
 
 
 
Earnings from continuing operations
$ 159 
$ 144 
$ 483 
$ 417 
Earnings (losses) from discontinued operations, net of tax
30 
(28)
Net earnings
162 
174 
483 
389 
Other comprehensive income (loss), net of tax:
 
 
 
 
Foreign currency translation adjustments
20 
(32)
(47)
(51)
Net unrealized gains (losses) on derivatives
(1)
(17)
Pension and postretirement benefit adjustments
Total other comprehensive income (loss), net of tax
19 
(28)
(40)
(64)
Comprehensive income
$ 181 
$ 146 
$ 443 
$ 325 
COMPREHENSIVE INCOME (Schedule of Changes in Accumulated Other Comprehensive Net Loss) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Foreign currency adjustments
 
 
 
 
Other comprehensive gains (losses) before reclassifications
$ 21 
$ (33)
$ (40)
$ (88)
Reclassification of (gains) losses into earnings:
 
 
 
 
Recognition of deferred foreign currency translation loss
30 
Income tax benefit (expense)
(1)
(7)
Foreign currency adjustments, net of tax
20 
(32)
(47)
(51)
Net unrealized gains (losses) on derivatives
 
 
 
 
Other comprehensive gains (losses) before reclassifications
(6)
(8)
(21)
Reclassification of (gains) losses into earnings
13 
Income tax benefit (expense)
(2)
(1)
(2)
Net unrealized gains (losses) on derivatives, net of tax
(1)
(17)
Pension and postretirement benefit adjustments
 
 
 
 
Other comprehensive gains (losses) before reclassifications
(2)
Reclassification of (gains) losses into earnings
Income tax benefit (expense)
(1)
(1)
(1)
(1)
Pension and postretirement benefit adjustments, net of tax
Total other comprehensive income (loss), net of tax
19 
(28)
(40)
(64)
Long term intercompany loans [Member]
 
 
 
 
Intercompany Foreign Currency Balance [Line Items]
 
 
 
 
Other comprehensive gains (losses) before reclassifications
(4)
(11)
(8)
Amounts reclassified from accumulated other comprehensive net loss
$ 0 
$ 0 
$ 0 
$ 0 
EMPLOYEE BENEFIT PLANS (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Retirement Income Plans [Member]
 
 
 
 
Defined Benefit Plans [Line Items]
 
 
 
 
Service cost
$ 1 
$ 0 
$ 1 
$ 1 
Interest cost
19 
19 
Expected return on plan assets
(4)
(5)
(13)
(15)
Amortization of unrecognized items
Net periodic benefit cost
14 
14 
Discretionary contributions
 
15 
 
Retirement Health Care Plans [Member]
 
 
 
 
Defined Benefit Plans [Line Items]
 
 
 
 
Net periodic benefit cost
$ (1)
$ (1)
$ (1)
$ (2)
OTHER CONTINGENCIES AND GUARANTEES (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Mar. 31, 2016
Jun. 30, 2015
OTHER CONTINGENCIES AND GUARANTEES [Abstract]
 
 
Liability for future remediation costs
$ 13 
$ 12 
Percentage of liability for aggregate remediation and associated costs, other than legal fees
24.30% 
 
Remediation period
30 years 
 
Letter of credit
10 
 
Letter of credit, amount outstanding
$ 0 
 
SEGMENT RESULTS (Schedule of Segment Reporting Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ 1,426 
$ 1,401 
$ 4,161 
$ 4,098 
Earnings (losses) from continuing operations before income taxes
237 
217 
731 
632 
Cleaning [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
465 
442 
1,419 
1,359 
Earnings (losses) from continuing operations before income taxes
122 
100 
394 
331 
Household [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
467 
451 
1,253 
1,214 
Earnings (losses) from continuing operations before income taxes
113 
102 
262 
205 
Lifestyle [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
254 
243 
736 
705 
Earnings (losses) from continuing operations before income taxes
70 
71 
201 
200 
International [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
240 
265 
753 
820 
Earnings (losses) from continuing operations before income taxes
11 
17 
65 
67 
Corporate [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
Earnings (losses) from continuing operations before income taxes
$ (79)
$ (73)
$ (191)
$ (171)
SEGMENT RESULTS (Narrative) (Details) (Net sales [Member], Wal-Mart Stores, Inc. [Member])
3 Months Ended 9 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Net sales [Member] |
Wal-Mart Stores, Inc. [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Concentration percentage
27.00% 
27.00% 
27.00% 
26.00% 
SUBSEQUENT EVENTS (Details) (Subsequent event [Member], Renew Life [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended
May 2, 2016
Subsequent event [Member] |
Renew Life [Member]
 
Subsequent Event [Line Items]
 
Percent acquired
100.00% 
Purchase price
$ 290