OAKLAND, Calif., Feb. 3, 2017 /PRNewswire/ -- For its second
quarter ending Dec. 31, 2016, The
Clorox Company (NYSE:CLX) today reported sales growth of 5 percent
and flat diluted net earnings per share (EPS) from continuing
operations of $1.14, which includes
an 11-cent noncash charge related to
the Aplicare business as discussed below.
"I'm very pleased with the results we're reporting today, the
highlight being we delivered our second consecutive quarter of 8
percent volume growth. This is the highest volume increase we've
seen in nearly 10 years, with gains in each of our segments in the
U.S. and International," said Chairman and CEO Benno Dorer. "Excluding the noncash charge, we
delivered strong earnings per share growth on top of 18 percent
growth in the year-ago period. Notably, we continue to drive cost
savings and productivity improvements, including in International,
which delivered significant margin improvement."
"As we look to the remainder of fiscal year 2017, incremental
investment behind our brands remains a priority, with promising
innovation launching across our portfolio," continued Dorer.
"Importantly, our core business remains strong. We're confident in
our strategy and staying the course."
All results in this press release are reported on a continuing
operations basis, unless otherwise stated. Some information in this
release is reported on a non-GAAP basis. See "Non-GAAP Financial
Information" below and the tables toward the end of this press
release for more information and reconciliations of key
second-quarter fiscal year 2017 and fiscal year 2016 results to the
most directly comparable financial measures calculated in
accordance with generally accepted accounting principles in the
U.S. (GAAP).
Fiscal Second-Quarter Results
Following is a summary of key second-quarter results. All
comparisons are with the second quarter of fiscal year 2016, unless
otherwise stated.
- 8% volume growth
- 5% sales growth
- $1.14 diluted EPS
In the second quarter, volume grew 8 percent, reflecting
increases in all reportable segments. Total company sales grew 5
percent, driven by strong volume growth, including 2 points from
the RenewLife digestive health business, which was acquired in
May 2016, and the benefit of price
increases in the company's International business. These factors
were partially offset by slightly less than 2 points of unfavorable
foreign currency exchange rates as well as unfavorable mix. On a
currency-neutral basis, second quarter sales grew 6 percent.
Clorox delivered earnings from continuing operations of
$150 million, or $1.14 diluted EPS, equal to the year-ago quarter.
Second-quarter diluted EPS results reflect higher sales growth and
cost savings, offset by higher manufacturing and logistics costs as
well as the aforementioned 11-cent
reduction from a $21 million noncash
charge related to impairing certain assets of the Aplicare skin
antisepsis business within the Cleaning segment, which was recorded
to Other Expense. The impairment charge resulted from an updated
valuation related to anticipated lower future cash flows for the
Aplicare business. This was based on increased investment levels
and actions the company is taking in an evolving regulatory
landscape for the skin antisepsis business.
The company's second-quarter gross margin increased 10 basis
points to 44.7 percent from 44.6 percent in the year-ago quarter,
driven by the benefits of cost savings and international price
increases, partially offset by higher manufacturing and logistics
costs.
Year-to-date net cash provided by continuing operations was
$271 million, compared with
$178 million in the year-ago period.
The year-over-year increase was primarily related to higher
earnings, excluding noncash items, and lower tax payments in the
first half of fiscal year 2017.
Key Segment Results
Following is a summary of key second-quarter results from
continuing operations by reportable segment. All comparisons are
with the second quarter of fiscal year 2016, unless otherwise
stated.
Cleaning
(Laundry, Home Care, Professional
Products)
- 10% volume growth
- 3% sales growth
- 15% pretax earnings decrease
Segment volume growth was driven largely by gains in Home Care,
with another quarter of record shipments of Clorox®
disinfecting wipes behind expanded club-channel distribution as
well as record shipments across a number of other Clorox-branded
products, including toilet bowl cleaners. Professional Products
also contributed to segment volume growth, reflecting gains across
cleaning brands. These factors were partially offset by volume
decreases in Laundry, primarily driven by lower shipments of
Clorox® bleach due to category softness. The variance
between volume and sales was driven primarily by unfavorable mix
due to expanded disinfecting wipes distribution in the club channel
and higher trade promotion investments. The decrease in pretax
earnings was driven by the $21
million noncash charge related to the Aplicare business,
partially offset by cost savings.
Household
(Bags and Wraps, Charcoal, Cat Litter, Digestive Health)
- 11% volume growth
- 12% sales growth
- 6% pretax earnings growth
Segment volume growth was driven primarily by the benefit of the
RenewLife acquisition and higher shipments in Charcoal. Segment
volume results also reflect continued strength in Glad®
premium trash bags. Pretax earnings growth reflected higher sales
and the benefit of cost savings, partially offset by higher
manufacturing and logistics costs.
Lifestyle
(Dressings and Sauces, Water Filtration, Natural Personal Care)
- 5% volume growth
- 4% sales growth
- 7% pretax earnings growth
Segment volume growth was driven primarily by gains in Natural
Personal Care behind innovation in Burt's Bees® lip care
and color products. Gains in Dressings & Sauces also
contributed to volume growth from increased merchandising support
behind Hidden Valley® bottled salad dressings. Pretax
earnings grew primarily driven by higher sales.
International
(Sales outside of the U.S.)
- 2% volume increase
- 2% sales decrease (8% growth, currency-neutral basis)
- 27% pretax earnings growth
Segment volume results were driven primarily by gains in
Canada, reflecting the benefit of
the RenewLife business and base business growth, partially offset
by decreases in certain Latin American countries, mainly
Argentina. Volume outpaced sales,
primarily driven by the impact of 10 percentage points of
unfavorable foreign currency exchange rates, partially offset by
the benefit of price increases. Excluding the impact
of unfavorable foreign currency exchange rates, segment sales
grew 8 percent. Pretax earnings grew, reflecting the benefit
of price increases as well as cost savings resulting from the
International business' focus on driving productivity gains to
expand margins. These factors were partially offset by higher
manufacturing and logistics costs from continued high inflation and
the impact of unfavorable foreign currency exchange rates.
Clorox Updates Fiscal Year 2017 Outlook Behind Strong Sales
Growth
- 3% to 4% sales growth (updated)
- 25 basis points to 50 basis points of EBIT margin expansion
(unchanged)
- $5.23 to $5.38 diluted EPS range
(updated)
Clorox now anticipates sales growth of 3 percent to 4 percent in
fiscal year 2017, versus its previous sales outlook of 2 percent to
4 percent. The company's fiscal year 2017 sales outlook reflects
strong sales results in the first half of the fiscal year, robust
innovation plans in the second half of the fiscal year and about 2
percentage points of benefit from the RenewLife acquisition. The
company anticipates these factors to be partially offset by 1
percent to 2 percent of unfavorable foreign currency exchange
rates. Excluding the impact of unfavorable foreign currency
exchange rates, the company continues to anticipate fiscal year
sales growth in the range of 4 percent to 6 percent.
Clorox continues to anticipate EBIT margin expansion for fiscal
year 2017 in the range of 25 to 50 basis points, reflecting lower
selling and administrative expenses as a percentage of sales driven
by ongoing productivity initiatives and normalized levels of
performance-based incentive compensation costs.
Clorox now anticipates fiscal year 2017 diluted EPS from
continuing operations in the range of $5.23
to $5.38, versus the previous outlook of $5.23 to $5.43, reflecting a 5-cent reduction in anticipated benefit from
adopting Accounting Standards Update (ASU) 2016-09, issued by the
Financial Accounting Standards Board, related to the accounting of
employee share-based payments. Clorox's fiscal year diluted EPS
outlook also reflects strong fiscal year-to-date sales growth,
innovation across the company's portfolio in the second half of the
fiscal year and continued expectations for full-year EBIT margin
expansion.
"We feel good about our strong sales results to date and look
forward to continued topline momentum in the second half of the
fiscal year supported by our upcoming new product launches," said
Chief Financial Officer Steve Robb.
"Moreover, we're confident in our long-term plans for margin
improvement, including in our International business, which is
making good progress in driving productivity improvements."
For More Detailed Financial Information
Visit the company's Financial Information: Quarterly Results
section of the company's website at TheCloroxCompany.com for the
following:
- Supplemental unaudited volume and sales growth information
- Supplemental unaudited gross margin driver information
- Supplemental unaudited reconciliation of certain non-GAAP
financial information, including earnings from continuing
operations before interest and taxes (EBIT) and earnings from
continuing operations before interest, taxes, depreciation and
amortization (EBITDA)
- Supplemental unaudited balance sheet and cash flow information
and free cash flow reconciliation
- Supplemental price-change information
Note: Percentage and basis-point changes noted in this press
release are calculated based on rounded numbers. Supplemental
materials are available in the Financial Information: Quarterly
Results section of the company's website at
TheCloroxCompany.com.
The Clorox Company
The Clorox Company (NYSE: CLX) is a leading
multinational manufacturer and marketer of consumer and
professional products with about 8,000 employees worldwide and
fiscal year 2016 sales of $5.8 billion. Clorox markets some of
the most trusted and recognized consumer brand names, including its
namesake bleach and cleaning products; Pine-Sol® cleaners; Liquid
Plumr® clog removers; Poett® home care products; Fresh Step® cat
litter; Glad® bags, wraps and containers; Kingsford® charcoal;
Hidden Valley® dressings and sauces; Brita® water-filtration
products; Burt's Bees® natural personal care products; and
RenewLife® digestive health products. The company also markets
brands for professional services, including Clorox Healthcare® and
Clorox Commercial Solutions®. More than 80 percent of the company's
sales are generated from brands that hold the No. 1 or No. 2 market
share positions in their categories.
Clorox is a signatory of the United Nations Global Compact, a
community of global leaders committed to sustainability. The
company also has been broadly recognized for its corporate
responsibility efforts, most notably receiving two Climate
Leadership Awards for Excellence in 2015 and a Safer Choice
Partner of the Year Award in 2016 from the U.S.
Environmental Protection Agency as well as being named to CR
Magazine's 2016 Best Corporate Citizens list and included in
the 2016 Newsweek Green Rankings. The Clorox
Company and its foundations contributed
nearly $17 million in combined cash grants, product
donations, cause marketing and employee volunteerism in the past
year. For more information, visit TheCloroxCompany.com,
including the Good Growth blog, and follow the company on
Twitter at @CloroxCo.
CLX-F
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and such forward-looking statements involve risks and
uncertainties. Except for historical information, statements about
future volumes, sales, foreign currencies, costs, cost savings,
margins, earnings, earnings per share, diluted earnings per share,
foreign currency exchange rates, cash flows, plans, objectives,
expectations, growth, or profitability are forward-looking
statements based on management's estimates, beliefs, assumptions
and projections. Words such as "could," "may," "expects,"
"anticipates," "targets," "goals," "projects," "intends," "plans,"
"believes," "seeks," "estimates," "predicts" and variations on such
words, and similar expressions that reflect our current views with
respect to future events and operational, economic and financial
performance, are intended to identify such forward-looking
statements. These forward-looking statements are only predictions,
subject to risks and uncertainties, and actual results could differ
materially from those discussed. Important factors that could
affect performance and cause results to differ materially from
management's expectations are described in the sections entitled
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the company's
Annual Report on Form 10-K for the fiscal year ended June 30,
2016, as updated from time to time in the
company's SEC filings. These factors include, but are not
limited to: intense competition in the company's markets;
worldwide, regional and local economic conditions and financial
market volatility; the ability of the company to drive sales
growth, increase prices and market share, grow its product
categories and achieve favorable product and geographic mix;
volatility and increases in commodity costs such as resin, sodium
hypochlorite and agricultural commodities, and increases in energy,
transportation or other costs; dependence on key customers and
risks related to customer consolidation and ordering patterns;
risks related to reliance on information technology systems,
including potential security breaches, cyber-attacks, privacy
breaches or data breaches that result in the unauthorized
disclosure of consumer, customer, employee or company information,
or service interruptions; lower revenue or increased costs
resulting from government actions and regulations, including with
respect to the Aplicare business, despite the write down of
Aplicare assets in the second quarter ended December 31, 2016; the ability of the company to
successfully manage global, political, legal, tax and regulatory
risks, including changes in regulatory or administrative activity;
risks related to international operations, including political
instability; government-imposed price controls or other
regulations; foreign currency exchange rate controls, including
periodic changes in such controls, fluctuations and devaluations;
labor claims, labor unrest and inflationary pressures, particularly
in Argentina; potential harm and
liabilities from the use, storage and transportation of chlorine in
certain international markets where chlorine is used in the
production of bleach; and the possibility of nationalization,
expropriation of assets or other government action in foreign
jurisdictions; risks relating to acquisitions, new ventures and
divestitures, and associated costs, including the potential for
asset impairment charges related to, among others, intangible
assets and goodwill; the ability of the company to develop and
introduce commercially successful products; supply disruptions and
other risks inherent in reliance on a limited base of suppliers;
the impact of product liability claims, labor claims and other
legal proceedings, including in foreign jurisdictions; the success
of the company's business strategies; the ability of the company to
implement and generate anticipated cost savings and efficiencies;
the company's ability to attract and retain key personnel; the
company's ability to maintain its business reputation and the
reputation of its brands; environmental matters, including costs
associated with the remediation and monitoring of past
contamination, and possible increases in those costs resulting from
actions by relevant regulators, and the handling and/or
transportation of hazardous substances; the impact of natural
disasters, terrorism and other events beyond the company's control;
the company's ability to maximize, assert and defend its
intellectual property rights; any infringement or claimed
infringement by the company of third-party intellectual property
rights; risks related to the potential increase in the company's
purchase price for The Procter & Gamble Company's (P&G)
interest in the Glad® business and the impact from the
decision on whether or not to extend the term of the related
agreement with P&G; the effect of the company's indebtedness
and credit rating on its business operations and financial results;
risks related to the company's discontinuation of operations in
Venezuela; the company's ability
to pay and declare dividends or repurchase its stock in the future;
the company's ability to maintain an effective system of internal
controls, including after completing acquisitions; uncertainties
relating to tax positions, tax disputes and changes in the
company's tax rate; the accuracy of the company's estimates and
assumptions on which its financial projections are based; and the
impacts of potential stockholder activism.
The company's forward-looking statements in this press release
are based on management's current views, beliefs and assumptions
regarding future events and speak only as of their dates. The
company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by the federal
securities laws.
Non-GAAP Financial Information
This press release contains non-GAAP financial information
relating to currency-neutral net sales growth, EBIT and EBIT
margin. The company has included reconciliations of these non-GAAP
financial measures to the most directly comparable financial
measure calculated in accordance with GAAP. See the end of this
press release for these reconciliations.
The company discloses these non-GAAP financial measures to
supplement its consolidated financial statements presented in
accordance with GAAP. These non-GAAP financial measures should not
be considered in isolation or as a substitute for the comparable
GAAP measures. In addition, these non-GAAP financial measures may
not be the same as similar measures provided by other companies due
to potential differences in methods of calculation and items being
excluded. They should be read in connection with the company's
consolidated financial statements presented in accordance with
GAAP.
EBIT represents earnings from continuing operations before
income taxes, interest income and interest expense. EBIT margin is
the ratio of EBIT to net sales. The company's management believes
these measures provide useful additional information to investors
about trends in the company's operations and are useful for
period-over-period comparisons.
Currency-neutral net sales growth represents U.S. GAAP net sales
growth excluding the impact of the change in foreign currency
exchange rates, and is calculated by re-measuring the current
period net sales using the comparable prior year's exchange rates.
The company's management believes these measures provide useful
additional information to investors about changes in the company's
core business operations without the unpredictability and
volatility of currency fluctuations.
For recent presentations made by company management and other
investor materials, visit Investor Events on the company's
website.
Condensed
Consolidated Statements of Earnings (Unaudited)
|
Dollars in millions,
except share and per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
12/31/2016
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,406
|
|
$
|
1,345
|
|
$
|
2,849
|
|
|
2,735
|
Cost of products
sold
|
|
777
|
|
|
745
|
|
|
1,580
|
|
|
1,510
|
Gross
profit
|
|
629
|
|
|
600
|
|
|
1,269
|
|
|
1,225
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
197
|
|
|
191
|
|
|
397
|
|
|
377
|
Advertising
costs
|
|
128
|
|
|
126
|
|
|
256
|
|
|
249
|
Research and
development costs
|
|
32
|
|
|
34
|
|
|
63
|
|
|
64
|
Interest
expense
|
|
22
|
|
|
22
|
|
|
44
|
|
|
45
|
Other (income)
expense, net
|
|
23
|
|
|
(3)
|
|
|
18
|
|
|
(4)
|
Earnings from
continuing operations before income taxes
|
|
227
|
|
|
230
|
|
|
491
|
|
|
494
|
Income taxes on
continuing operations
|
|
77
|
|
|
79
|
|
|
162
|
|
|
170
|
Earnings from
continuing operations
|
|
150
|
|
|
151
|
|
|
329
|
|
|
324
|
Earnings (losses)
from discontinued operations, net of tax
|
|
(1)
|
|
|
(2)
|
|
|
(1)
|
|
|
(3)
|
Net
earnings
|
$
|
149
|
|
$
|
149
|
|
$
|
328
|
|
$
|
321
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (losses)
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.16
|
|
$
|
1.16
|
|
$
|
2.55
|
|
|
2.50
|
|
|
Discontinued
operations
|
|
-
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.02)
|
|
Basic net earnings
per share
|
$
|
1.16
|
|
$
|
1.15
|
|
$
|
2.54
|
|
$
|
2.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.14
|
|
$
|
1.14
|
|
$
|
2.51
|
|
|
2.46
|
|
|
Discontinued
operations
|
|
-
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.02)
|
|
Diluted net earnings
per share
|
$
|
1.14
|
|
$
|
1.13
|
|
$
|
2.50
|
|
$
|
2.44
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
128,497
|
|
|
129,543
|
|
|
128,973
|
|
|
129,349
|
|
Diluted
|
|
130,775
|
|
|
131,546
|
|
|
131,406
|
|
|
131,477
|
Reportable Segment
Information
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
Earnings (losses)
from continuing operations
before income taxes
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
12/31/2016
|
|
12/31/2015
|
|
%
Change(1)
|
|
12/31/2016
|
|
12/31/2015
|
|
%
Change(1)
|
Cleaning
|
$
|
469
|
|
$
|
457
|
|
3%
|
|
$
|
104
|
|
$
|
123
|
|
-15%
|
Household
|
|
421
|
|
|
375
|
|
12%
|
|
|
71
|
|
|
67
|
|
6%
|
Lifestyle
|
|
260
|
|
|
251
|
|
4%
|
|
|
77
|
|
|
72
|
|
7%
|
International
|
|
256
|
|
|
262
|
|
-2%
|
|
|
28
|
|
|
22
|
|
27%
|
Corporate
|
|
-
|
|
|
-
|
|
0%
|
|
|
(53)
|
|
|
(54)
|
|
-2%
|
Total
|
$
|
1,406
|
|
$
|
1,345
|
|
5%
|
|
$
|
227
|
|
$
|
230
|
|
-1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
Earnings (losses)
from continuing operations before income taxes
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
12/31/2016
|
|
12/31/2015
|
|
%
Change(1)
|
|
12/31/2016
|
|
12/31/2015
|
|
%
Change(1)
|
Cleaning
|
$
|
1,003
|
|
$
|
954
|
|
5%
|
|
$
|
268
|
|
$
|
272
|
|
-1%
|
Household
|
|
843
|
|
|
786
|
|
7%
|
|
|
140
|
|
|
149
|
|
-6%
|
Lifestyle
|
|
496
|
|
|
482
|
|
3%
|
|
|
139
|
|
|
131
|
|
6%
|
International
|
|
507
|
|
|
513
|
|
-1%
|
|
|
55
|
|
|
54
|
|
2%
|
Corporate
|
|
-
|
|
|
-
|
|
0%
|
|
|
(111)
|
|
|
(112)
|
|
-1%
|
Total
|
$
|
2,849
|
|
$
|
2,735
|
|
4%
|
|
$
|
491
|
|
$
|
494
|
|
-1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Percentages based on rounded numbers.
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Dollars in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2016
|
|
6/30/2016
|
|
12/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
414
|
|
$
|
401
|
|
$
|
390
|
|
|
Receivables,
net
|
|
|
514
|
|
|
569
|
|
|
474
|
|
|
Inventories,
net
|
|
|
501
|
|
|
443
|
|
|
450
|
|
|
Other current
assets
|
|
|
120
|
|
|
72
|
|
|
176
|
|
|
|
Total current
assets
|
|
|
1,549
|
|
|
1,485
|
|
|
1,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
904
|
|
|
906
|
|
|
878
|
|
Goodwill
|
|
|
1,190
|
|
|
1,197
|
|
|
1,051
|
|
Trademarks,
net
|
|
|
655
|
|
|
657
|
|
|
532
|
|
Other intangible
assets, net
|
|
|
72
|
|
|
78
|
|
|
47
|
|
Other
assets*
|
|
|
198
|
|
|
187
|
|
|
168
|
|
Total
assets
|
|
$
|
4,568
|
|
$
|
4,510
|
|
$
|
4,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Notes and loans
payable
|
|
$
|
759
|
|
$
|
523
|
|
$
|
500
|
|
|
Current maturities of
long-term debt
|
|
|
400
|
|
|
-
|
|
|
-
|
|
|
Accounts payable and
accrued liabilities
|
|
|
878
|
|
|
1,035
|
|
|
858
|
|
|
Income taxes
payable
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Total current
liabilities
|
|
|
2,037
|
|
|
1,558
|
|
|
1,358
|
|
Long-term
debt*
|
|
|
1,390
|
|
|
1,789
|
|
|
1,787
|
|
Other
liabilities
|
|
|
794
|
|
|
784
|
|
|
740
|
|
Deferred income
taxes
|
|
|
77
|
|
|
82
|
|
|
83
|
|
Total
liabilities
|
|
|
4,298
|
|
|
4,213
|
|
|
3,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
159
|
|
|
159
|
|
|
159
|
|
Additional paid-in
capital
|
|
|
895
|
|
|
868
|
|
|
823
|
|
Retained
earnings
|
|
|
2,284
|
|
|
2,163
|
|
|
2,042
|
|
Treasury
shares
|
|
|
(2,489)
|
|
|
(2,323)
|
|
|
(2,265)
|
|
Accumulated other
comprehensive net losses
|
|
|
(579)
|
|
|
(570)
|
|
|
(561)
|
|
Stockholders'
equity
|
|
|
270
|
|
|
297
|
|
|
198
|
|
Total liabilities and
stockholders' equity
|
|
$
|
4,568
|
|
$
|
4,510
|
|
$
|
4,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*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 Company adopted this
standard in the first quarter of fiscal year 2017 and
retrospectively applied the standard to all periods
presented.
|
The tables below present the reconciliation of non-GAAP
financial measures to the most directly comparable financial
measures calculated in accordance with GAAP and other supplemental
information. See "Non-GAAP Financial Information" above for further
information regarding the company's use of non-GAAP financial
measures.
The reconciliations below are on a continuing operations
basis
Second-Quarter and Fiscal Year-to-Date Net Sales Growth
Reconciliation
|
Q2
Fiscal
2017
|
|
Q2
Fiscal
2016
|
|
Q2
FYTD
Fiscal
2017
|
|
Q2
FYTD
Fiscal
2016
|
|
|
|
|
|
|
|
|
Total Net Sales
Growth – GAAP
|
4.5%
|
|
0.0%
|
|
4.2%
|
|
1.4%
|
|
|
|
|
|
|
|
|
Less: Foreign
exchange
|
-1.9%
|
|
-2.7%
|
|
-1.9%
|
|
-2.8%
|
|
|
|
|
|
|
|
|
Currency-Neutral
Net Sales Growth – Non-GAAP(1)
|
6.4%
|
|
2.7%
|
|
6.1%
|
|
4.2%
|
|
(1) Currency-neutral
net sales growth represents GAAP net sales growth excluding the
impact of the change in foreign currency exchange rates, and is
calculated by re-measuring the current period net sales using the
comparable prior year's exchange rates.
|
The reconciliations below for fiscal year 2016 are provided
as a reference point for the fiscal year 2017 outlook.
Fiscal Year EBIT Margin(2) Reconciliation
Dollar in millions
|
|
FY
Fiscal
2016
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$983
|
|
|
before income
taxes – GAAP
|
|
|
|
|
|
|
|
Interest
Income
|
-5
|
|
|
Interest
Expense
|
88
|
|
|
|
|
|
|
EBIT
(2) – non-GAAP
|
$1,066
|
|
|
|
|
|
|
Net Sales
|
$5,761
|
|
|
EBIT
margin(2) – non-GAAP
|
18.5%
|
|
|
|
|
|
|
|
|
|
|
(2) EBIT represents
earnings from continuing operations before interest and taxes. EBIT
margin is the ratio of EBIT to net sales.
|
For Gross Margin Drivers, please refer to the Supplemental
Information: Gross Margin Driver page in the Financial Information:
Quarterly Results section of the company's website
TheCloroxCompany.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/clorox-reports-q2-fiscal-year-2017-results-updates-fiscal-year-2017-outlook-behind-strong-sales-growth-300401773.html
SOURCE The Clorox Company