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SEGMENT REPORTING | 12 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING 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 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, water-filtration and natural personal care 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; bags and wraps; cat litter; water-filtration products; professional cleaning and disinfecting products; natural personal care products; food; grilling products and digestive health products marketed primarily under the Clorox, Glad, Poett, Brita, Burt's Bees, Pine-Sol, Ever Clean, Clorinda, Chux and Fresh Step Brands. Corporate and Other includes certain non-allocated administrative costs, various other non-operating income and expenses, as well as the results of the Better Health 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 Better Health VMS business. The principle measure of segment profitability used by management is segment adjusted earnings (losses) before interest and income taxes (segment adjusted EBIT). Segment adjusted EBIT is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as the pension settlement charge, incremental costs, net of insurance recoveries, relating to the cyberattack, 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 / divestitures and other nonrecurring or unusual items impacting comparability). Management 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 as it removes the impact of the items that management believes do not directly reflect the performance of each segment's underlying operations. The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated net sales and earnings (losses) before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate and Other.
| Net Sales
| Fiscal year
| 2024 |  | 2023 |  | 2022
Health and Wellness | $ | 2,485 |  |  | $ | 2,532 |  |  | $ | 2,427 |
Household | 1,950 |  |  | 2,098 |  |  | 1,984 |
Lifestyle | 1,275 |  |  | 1,338 |  |  | 1,253 |
International | 1,162 |  |  | 1,181 |  |  | 1,180 |
Reportable segment total | 6,872 |  |  | 7,149 |  |  | 6,844 |
Corporate and Other | 221 |  |  | 240 |  |  | 263 |
Total | $ | 7,093 |  |  | $ | 7,389 |  |  | $ | 7,107 |
| Segment adjusted earnings (losses) before interest and income taxes
| Fiscal year
| 2024 |  | 2023 |  | 2022
Health and Wellness | $ | 719 |  |  | $ | 594 |  |  | $ | 381 |
Household | 260 |  |  | 308 |  |  | 234 |
Lifestyle | 253 |  |  | 284 |  |  | 280 |
International | 122 |  |  | 89 |  |  | 97 |
Reportable segment total | 1,354 |  |  | 1,275 |  |  | 992 |
Corporate and Other | (309) |  |  | (358) |  |  | (223) |
Total | $ | 1,045 |  |  | $ | 917 |  |  | $ | 769 |
Interest income | 23 |  |  | 16 |  |  | 5 |
Interest expense | (90) |  |  | (90) |  |  | (106) |
Loss on divestiture (1) | (240) |  |  | — |  |  | — |
Pension settlement charge (2) | (171) |  |  | — |  |  | — |
Cyberattack costs, net of insurance recoveries (3) | (29) |  |  | — |  |  | — |
VMS impairment (4) | — |  |  | (445) |  |  | — |
Streamlined operating model (5) | (32) |  |  | (60) |  |  | — |
Digital capabilities and productivity enhancements investment (6) | (108) |  |  | (100) |  |  | (61) |
Earnings (losses) before income taxes | $ | 398 |  |  | $ | 238 |  |  | $ | 607 |
(1)Represents the loss on divestiture of the Argentina business corresponding to International. See Note 2 for additional details. (2)Represents costs related to the settlement of the domestic qualified pension plan corresponding to Corporate and Other. See Note 20 for additional details. (3)Represents incremental costs, net of insurance recoveries, related to the cyberattack. See Note 3 for additional details relating to the cyberattack. All insurance recoveries are recorded in Corporate and Other. For informational purposes, the following table provides the approximate cyberattack costs, net of insurance recoveries, corresponding to the Company’s reportable segments as a percentage of total net costs:
| 2024 |  |  |  |  |  |
Health and Wellness | 30 | % |  |  |  |  |  |
Household | 24 |  |  |  |  |  |  |
Lifestyle | 23 |  |  |  |  |  |  |
International | 8 |  |  |  |  |  |  |
Corporate and Other | 15 |  |  |  |  |  |  |
Total | 100 | % |  |  |  |  |  |
(4)Represents a noncash impairment charge of $445 related to the Better Health VMS business recorded in fiscal year 2023. (5)Represents restructuring and related implementation costs, net for the streamlined operating model of $32 and $60 in fiscal year 2024 and 2023, respectively. 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 years ended June 30:
|  |  |  |  | Inception to date ended
| 2024 |  | 2023 |  | 2024
Health and Wellness | 3 | % |  | 6 | % |  | 5 | %
Household | 2 |  |  | 1 |  |  | 2 |
Lifestyle | — |  |  | 4 |  |  | 2 |
International | 4 |  |  | 16 |  |  | 11 |
Corporate and Other | 91 |  |  | 73 |  |  | 80 |
Total | 100 | % |  | 100 | % |  | 100 | %
(6)Represents expenses related to the Company's digital capabilities and productivity enhancements investment corresponding to 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 | 2024 |  | — |  |  | — |  |  | — |  |  | (5) |  |  | — |  |  | (5) |
2023 |  | — |  |  | — |  |  | — |  |  | (4) |  |  | — |  |  | (4) |
| 2022 |  | — |  |  | — |  |  | — |  |  | (6) |  |  | — |  |  | (6) |
Total assets | 2024 |  | 1,124 |  |  | 1,088 |  |  | 1,110 |  |  | 1,327 |  |  | 1,102 |  |  | 5,751 |
| 2023 |  | 1,184 |  |  | 1,082 |  |  | 1,091 |  |  | 1,410 |  |  | 1,178 |  |  | 5,945 |
Capital expenditures | 2024 |  | 47 |  |  | 84 |  |  | 36 |  |  | 21 |  |  | 24 |  |  | 212 |
| 2023 |  | 51 |  |  | 97 |  |  | 29 |  |  | 24 |  |  | 27 |  |  | 228 |
| 2022 |  | 61 |  |  | 112 |  |  | 24 |  |  | 27 |  |  | 27 |  |  | 251 |
Depreciation and amortization | 2024 |  | 58 |  |  | 77 |  |  | 24 |  |  | 45 |  |  | 31 |  |  | 235 |
| 2023 |  | 59 |  |  | 78 |  |  | 25 |  |  | 46 |  |  | 28 |  |  | 236 |
| 2022 |  | 57 |  |  | 67 |  |  | 24 |  |  | 47 |  |  | 29 |  |  | 224 |
Significant noncash charges included in earnings (losses) before interest and income taxes:
Stock-based compensation | 2024 |  | 14 |  |  | 11 |  |  | 8 |  |  | 6 |  |  | 35 |  |  | 74 |
| 2023 |  | 14 |  |  | 10 |  |  | 7 |  |  | 4 |  |  | 38 |  |  | 73 |
| 2022 |  | 14 |  |  | 8 |  |  | 6 |  |  | 3 |  |  | 21 |  |  | 52 |
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 25%, 26% and 25% of consolidated net sales for each of the fiscal years ended June 30, 2024, 2023 and 2022, 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, for the fiscal years ended June 30:
|  | 2024 |  | 2023 |  | 2022
Cleaning |  | 30 | % |  | 30 | % |  | 29 | %
Professional Products |  | 5 | % |  | 5 | % |  | 4 | %
Health and Wellness |  | 35 | % |  | 35 | % |  | 33 | %
Bags and Wraps |  | 11 | % |  | 12 | % |  | 12 | %
Cat Litter |  | 9 | % |  | 9 | % |  | 8 | %
Grilling |  | 8 | % |  | 7 | % |  | 8 | %
Household |  | 28 | % |  | 28 | % |  | 28 | %
Food |  | 11 | % |  | 10 | % |  | 10 | %
Water Filtration |  | 4 | % |  | 4 | % |  | 4 | %
Natural Personal Care |  | 3 | % |  | 4 | % |  | 4 | %
Lifestyle |  | 18 | % |  | 18 | % |  | 18 | %
International |  | 16 | % |  | 16 | % |  | 17 | %
Corporate and Other |  | 3 | % |  | 3 | % |  | 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:
| 2024 |  | 2023 |  | 2022
Cleaning products | 43 | % |  | 42 | % |  | 42 | %
Bags and wraps | 15 | % |  | 16 | % |  | 16 | %
Food products | 11 | % |  | 11 | % |  | 11 | %
Cat litter products | 10 | % |  | 10 | % |  | 9 | %
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 | 2024 |  | $ | 5,956 |  |  | $ | 1,137 |  |  | $ | 7,093 |
| 2023 |  | 6,237 |  |  | 1,152 |  |  | 7,389 |
| 2022 |  | 5,951 |  |  | 1,156 |  |  | 7,107 |
Property, plant and equipment, net | 2024 |  | 1,188 |  |  | 127 |  |  | 1,315 |
| 2023 |  | 1,192 |  |  | 153 |  |  | 1,345 |

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- Definition The entire disclosure for reporting segments including data and tables. 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