XML 42 R28.htm IDEA: XBRL DOCUMENT
v3.23.2

SEGMENT REPORTING | 12 Months Ended
--- | ---
Jun. 30, 2023
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING During the fourth quarter of fiscal year 2023, the Company realigned its reportable segments following management’s decision to narrow the focus on core brands and streamline investment levels in the VMS business. As a result of this decision and the financial impact of the related impairment charges incurred in prior periods, the VMS operating segment, previously included in the Health and Wellness reportable segment, no longer meets the criteria to be presented as a reportable segment and is now combined with Corporate. In connection with this change, Corporate was renamed Corporate and Other. The Health and Wellness reportable segment is now comprised of the Cleaning and Professional Products operating segments. Additionally, beginning in the fourth quarter of fiscal year 2023, management changed its principle measure of segment profitability to segment adjusted earnings (losses) before interest and income taxes. Segment adjusted earnings (losses) before interest and income taxes is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as asset impairments, charges related to the streamlined operating model, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions and other nonrecurring or unusual items impacting comparability). The Company uses this measure to assess the operating results and performance of its segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. Management believes that the presentation of segment adjusted earnings (losses) before interest and income taxes excluding these items is useful to investors to assess operating performance on a consistent basis by removing the impact of the items that management believes do not directly reflect the performance of each segment's underlying operations. All periods presented have been recast to reflect these changes. The Company operates through strategic business units (SBUs) that are organized into the Company’s operating segments. Operating segments with shared economic and qualitative characteristics are aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Operating segments not aggregated into a reportable segment are reflected in Corporate and Other. The four reportable segments consist of the following: •Health and Wellness consists of cleaning, disinfecting and professional products mainly marketed and sold in the United States. •Household consists of bags and wraps, cat litter and grilling products marketed and sold in the United States. •Lifestyle consists of food, natural personal care products and water-filtration products marketed and sold in the United States. •International consists of products sold outside the United States. Products within this segment include laundry additives; home care products; water-filtration products; digestive health products; grilling products; cat litter; food; bags and wraps; natural personal care products; and professional cleaning and disinfecting products. Corporate and Other includes certain non-allocated administrative costs, various other non-operating income and expenses, as well as the results of the VMS business. Assets in Corporate and Other include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, operating lease right-of-use assets, other long-term assets and deferred taxes, as well as the assets related to the VMS business.
| Net Sales
| Fiscal year
| 2023 |  | 2022 |  | 2021
Health and Wellness | $ | 2,532 |  |  | $ | 2,427 |  |  | $ | 2,690 |
Household | 2,098 |  |  | 1,984 |  |  | 1,981 |
Lifestyle | 1,338 |  |  | 1,253 |  |  | 1,218 |
International | 1,181 |  |  | 1,180 |  |  | 1,162 |
Corporate and Other | 240 |  |  | 263 |  |  | 290 |
Total | $ | 7,389 |  |  | $ | 7,107 |  |  | $ | 7,341 |
| Segment Adjusted Earnings (losses) before interest and income taxes
| Fiscal year
| 2023 |  | 2022 |  | 2021
Health and Wellness | $ | 594 |  |  | $ | 381 |  |  | $ | 748 |
Household | 308 |  |  | 234 |  |  | 375 |
Lifestyle | 284 |  |  | 280 |  |  | 320 |
International | 89 |  |  | 97 |  |  | 119 |
Corporate and Other | (358) |  |  | (223) |  |  | (293) |
Total | $ | 917 |  |  | $ | 769 |  |  | $ | 1,269 |
Interest income | 16 |  |  | 5 |  |  | 5 |
Interest expense | (90) |  |  | (106) |  |  | (99) |
VMS impairments (1) (2) | (445) |  |  | — |  |  | (329) |
Professional Products supplier charge (3) | — |  |  | — |  |  | (28) |
Saudi JV acquisition gain (4) | — |  |  | — |  |  | 82 |
Streamlined operating model (5) | (60) |  |  | — |  |  | — |
Digital capabilities and productivity enhancements investment (6) | (100) |  |  | (61) |  |  | — |
Earnings (losses) before income taxes | $ | 238 |  |  | $ | 607 |  |  | $ | 900 |
(1)Represents a noncash impairment charge of $445 related to the VMS business recorded in fiscal year 2023. As a result of the segment changes noted above, $433 and $12 was recast from the third quarter fiscal year 2023 interim reporting period for the Health and Wellness and International reportable segments, respectively. (2)Represents a noncash impairment charge of $329 related to the VMS business recorded in fiscal year 2021. As a result of the segment reporting changes noted above, $329 was recast from the fiscal year 2021 reporting period from the Health and Wellness reportable segment. (3)Represents noncash charges of $28 on investments and related arrangements made with a Professional Products business supplier. As a result of the segment changes noted above, this amount was recast from the fiscal year 2021 reporting period for the Health and Wellness reportable segment. (4)Represents an $82 noncash net gain from the remeasurement of the Company’s previously held investment in its Saudi joint venture. As a result of the segment changes noted above, this amount was recast from the fiscal year 2021 reporting period for the International reportable segment. (5)Represents restructuring and related implementation costs, net for the streamlined operating model of $60. As a result of the segment changes noted above, this amount was recast from the fiscal year 2023 reporting period for Corporate and Other. For informational purposes the following table provides the approximate restructuring and related implementation costs, net corresponding to the Company's segments as a percent of the total costs for the fiscal year ended June 30:
|  |  |  | 2023
| Health and Wellness |  |  | 6 | %
| Household |  |  | 1 |
| Lifestyle |  |  | 4 |
| International |  |  | 16 |
| Corporate and Other |  |  | 73 |
| Total |  |  | 100 | %
(6)Represents expenses related to the Company's digital capabilities and productivity enhancements investment. As a result of the segment changes noted above, these amounts were recast from the fiscal year 2023 and fiscal year 2022 reporting periods for Corporate and Other.
| Fiscal Year |  | Health and Wellness |  | Household |  | Lifestyle |  | International |  | Corporate and Other |  | Total Company
(Income) Loss from equity investees included in Other (income) expense, net | 2023 |  | — |  |  | — |  |  | — |  |  | (4) |  |  | — |  |  | (4) |
2022 |  | — |  |  | — |  |  | — |  |  | (6) |  |  | — |  |  | (6) |
| 2021 |  | — |  |  | — |  |  | — |  |  | (5) |  |  | — |  |  | (5) |
Total assets | 2023 |  | 1,184 |  |  | 1,082 |  |  | 1,091 |  |  | 1,410 |  |  | 1,178 |  |  | 5,945 |
| 2022 |  | 1,275 |  |  | 1,045 |  |  | 1,035 |  |  | 1,453 |  |  | 1,350 |  |  | 6,158 |
Capital expenditures | 2023 |  | 51 |  |  | 97 |  |  | 29 |  |  | 24 |  |  | 27 |  |  | 228 |
| 2022 |  | 61 |  |  | 112 |  |  | 24 |  |  | 27 |  |  | 27 |  |  | 251 |
| 2021 |  | 120 |  |  | 108 |  |  | 29 |  |  | 42 |  |  | 32 |  |  | 331 |
Depreciation and amortization | 2023 |  | 59 |  |  | 78 |  |  | 25 |  |  | 46 |  |  | 28 |  |  | 236 |
| 2022 |  | 57 |  |  | 67 |  |  | 24 |  |  | 47 |  |  | 29 |  |  | 224 |
| 2021 |  | 52 |  |  | 67 |  |  | 23 |  |  | 45 |  |  | 24 |  |  | 211 |
Significant noncash charges included in earnings (losses) before interest and income taxes:
Stock-based compensation | 2023 |  | 14 |  |  | 10 |  |  | 7 |  |  | 4 |  |  | 38 |  |  | 73 |
| 2022 |  | 14 |  |  | 8 |  |  | 6 |  |  | 3 |  |  | 21 |  |  | 52 |
| 2021 |  | 16 |  |  | 10 |  |  | 7 |  |  | 2 |  |  | 15 |  |  | 50 |
All intersegment sales are eliminated and are not included in the Company’s reportable net sales. Net sales to the Company’s largest customer, Walmart Stores, Inc. and its affiliates, were 26%, 25%, and 25% of consolidated net sales for each of the fiscal years ended June 30, 2023, 2022 and 2021, respectively, and occurred across all of the Company’s reportable segments. No other customers accounted for 10% or more of the Company’s consolidated net sales in any of these fiscal years. The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by operating segment under the new reporting structure, for the fiscal years ended June 30:
|  | 2023 |  | 2022 |  | 2021
Cleaning |  | 30 | % |  | 29 | % |  | 30 | %
Professional Products |  | 5 | % |  | 4 | % |  | 7 | %
Health and Wellness |  | 35 | % |  | 33 | % |  | 37 | %
Bags and Wraps |  | 12 | % |  | 12 | % |  | 11 | %
Cat Litter |  | 9 | % |  | 8 | % |  | 7 | %
Grilling |  | 7 | % |  | 8 | % |  | 9 | %
Household |  | 28 | % |  | 28 | % |  | 27 | %
Food |  | 10 | % |  | 10 | % |  | 9 | %
Natural Personal Care |  | 4 | % |  | 4 | % |  | 4 | %
Water Filtration |  | 4 | % |  | 4 | % |  | 3 | %
Lifestyle |  | 18 | % |  | 18 | % |  | 16 | %
International |  | 16 | % |  | 17 | % |  | 16 | %
Corporate and Other |  | 3 | % |  | 4 | % |  | 4 | %
Total |  | 100 | % |  | 100 | % |  | 100 | %
The Company’s products are marketed and sold globally. The following table provides the Company’s global product lines, which were sold in the U.S. and International, that accounted for 10% or more of consolidated net sales for the fiscal years ended June 30:
| 2023 |  | 2022 |  | 2021
Cleaning products | 42 | % |  | 42 | % |  | 43 | %
Bags and wraps | 16 | % |  | 16 | % |  | 14 | %
Food products | 11 | % |  | 11 | % |  | 10 | %
Cat litter products | 10 | % |  | 9 | % |  | 8 | %
Net sales and property, plant and equipment, net, by geographic area for and as of the fiscal years ended June 30 were as follows:
| Fiscal Year |  | United States |  | Foreign |  | Total Company
Net sales | 2023 |  | $ | 6,237 |  |  | $ | 1,152 |  |  | $ | 7,389 |
| 2022 |  | 5,951 |  |  | 1,156 |  |  | 7,107 |
| 2021 |  | 6,207 |  |  | 1,134 |  |  | 7,341 |
Property, plant and equipment, net | 2023 |  | 1,192 |  |  | 153 |  |  | 1,345 |
| 2022 |  | 1,180 |  |  | 154 |  |  | 1,334 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration