XML 40 R21.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended
--- | ---
Jun. 30, 2024
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Financial Risk Management and Derivative Instruments The Company is exposed to certain commodity, foreign currency and interest rate 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 futures, options and swap contracts to limit the impact of price volatility on a portion of its forecasted raw material requirements. These commodity derivatives may be exchange traded or over-the-counter contracts and generally have original contractual maturities of less than 2 years. Commodity purchase and option contracts are measured at fair value using market quotations obtained from the Chicago Board of Trade commodity futures exchange and commodity derivative dealers. As of June 30, 2024, the notional amount of commodity derivatives was $38, of which $27 related to soybean oil futures used for the food business and $11 related to jet fuel swaps used for the grilling business. As of June 30, 2023, the notional amount of commodity derivatives was $41, of which $29 related to soybean oil futures and $12 related to jet fuel swaps. 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 original contractual maturities of less than 2 years. The foreign exchange contracts are measured at fair value using information quoted by foreign exchange dealers. The notional amounts of outstanding foreign currency forward contracts used by the Company’s subsidiaries to hedge forecasted purchases of inventory were $29 and $51 as of June 30, 2024 and 2023, respectively. Interest Rate Risk Management The Company may enter into over-the-counter interest rate contracts to fix a portion of the benchmark interest rate prior to the anticipated issuance of fixed rate debt. These interest rate contracts generally have original contractual maturities of less than 3 years. The interest rate contracts are measured at fair value using information quoted by bond dealers. The Company held no interest rate contracts as of both June 30, 2024 and 2023. During fiscal year 2022, the Company entered into an additional $650 of interest rate contracts. All contracts represented interest rate swap lock agreements to manage the exposure to interest rate volatility associated with future interest payments on forecasted debt issuance, and were terminated in May 2022 upon issuance of $1,100 in senior notes (See Note 10). These contracts resulted in a $114 gain recorded in Other comprehensive (loss) income, comprised of $25 attributable to the May 2029 senior notes and $89 attributable to the May 2032 senior notes, which is being amortized into Interest expense in the consolidated statements of earnings over the 7-year and 10-year term of the notes. Commodity, Foreign Exchange and Interest Rate Derivatives The Company designates its commodity forward, futures and options contracts for forecasted purchases of raw materials, foreign currency forward contracts for forecasted purchases of inventory, and interest rate contracts for forecasted interest payments as cash flow hedges. The effects of derivative instruments designated as hedging instruments on Other comprehensive (loss) income and Net earnings were as follows during the fiscal years ended June 30:
| Gains (losses) recognized in Other comprehensive (loss) income
| 2024 |  | 2023 |  | 2022
Commodity purchase derivative contracts | $ | (8) |  |  | $ | (6) |  |  | $ | 17 |
Foreign exchange derivative contracts | — |  |  | — |  |  | 1 |
Interest rate derivative contracts | — |  |  | — |  |  | 89 |
Total | $ | (8) |  |  | $ | (6) |  |  | $ | 107 |
| Location of gains (losses) reclassified from Accumulated other comprehensive net (loss) income into Net earnings | Gains (losses) reclassified from Accumulated other comprehensive net (loss) income and recognized in Net earnings
|  | 2024 |  | 2023 |  | 2022
Commodity purchase derivative contracts | Cost of products sold | $ | (6) |  |  | $ | 5 |  |  | $ | 23 |
Foreign exchange derivative contracts | Cost of products sold | — |  |  | 1 |  |  | — |
Interest rate derivative contracts | Interest expense | 13 |  |  | 13 |  |  | (9) |
Total |  | $ | 7 |  |  | $ | 19 |  |  | $ | 14 |
The estimated amount of the existing net gain (loss) in Accumulated other comprehensive net (loss) income as of June 30, 2024 that is expected to be reclassified into Net earnings within the next twelve months is $8. 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 instruments exceeds contractually defined counterparty liability position limits. Of the over-the-counter derivative instruments in liability positions, $0 and $1 contained such terms as of June 30, 2024 and 2023, respectively. As of both June 30, 2024 and 2023, 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 Company's 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 June 30, 2024 and 2023, the Company and each of its counterparties had been assigned investment grade ratings by both Standard & Poor’s and Moody’s. Certain of the Company’s exchange-traded futures and options 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 June 30, 2024 and 2023, the Company maintained required cash margin balances related to exchange-traded futures and options contracts of $3 and $0, respectively, which are classified as Prepaid expenses and other current assets on the consolidated balance sheets. Trust Assets The Company holds interests in mutual funds and cash equivalents as part of trust assets related to its nonqualified deferred compensation plans. The participants in the nonqualified deferred compensation plans, who are the Company’s current and former employees, 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. The trusts represent variable interest entities for which the Company is considered the primary beneficiary, and, therefore, trust assets are consolidated and included in Other assets in the consolidated balance sheets. The gains and losses on the trust assets are recorded in Other (income) expense, net in the consolidated statements of earnings. The interests in mutual funds are measured at fair value using quoted market prices. The Company has designated these marketable securities as trading investments. As of June 30, 2024, the balance of the trust assets related to the Company’s nonqualified deferred compensation plans increased by $25 as compared to June 30, 2023. Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis in the 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 June 30, 2024 and 2023, the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the period included derivative financial instruments, which were classified as either Level 1 or Level 2, and trust assets to fund the Company’s nonqualified deferred compensation plans, which were classified as Level 1. All of the Company's derivative instruments qualify for hedge accounting. The following table provides information about the balance sheet classification and the fair values of the Company's derivative instruments:
|  |  |  |  | 2024 |  | 2023
| Balance Sheet Classification |  | Fair Value Hierarchy Level |  | Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Assets |  |  |  |  |  |  |  |  |  |  |
Commodity purchase options contracts | Prepaid expenses and other current assets |  | 1 |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | 2 |
Commodity purchase swaps contracts | Prepaid expenses and other current assets |  | 2 |  | 1 |  |  | 1 |  |  | — |  |  | — |
Foreign exchange forward contracts | Prepaid expenses and other current assets |  | 2 |  | — |  |  | — |  |  | — |  |  | — |
|  |  |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 2 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Commodity purchase futures contracts | Accounts payable and accrued liabilities |  | 1 |  | $ | 2 |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |
Commodity purchase swaps contracts | Accounts payable and accrued liabilities |  | 2 |  | — |  |  | — |  |  | 1 |  |  | 1 |
|  |  |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | 1 |
The following table provides information about the balance sheet classification and the fair values of the Company's other assets and liabilities for which disclosure of fair value is required:
|  |  |  |  | 2024 |  | 2023
| Balance sheet classification |  | Fair value hierarchy level |  | Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Assets |  |  |  |  |  |  |  |  |  |  |
Interest-bearing investments, including money market funds | Cash and cash equivalents (1) |  | 1 |  | $ | 95 |  |  | $ | 95 |  |  | $ | 243 |  |  | $ | 243 |
Time deposits | Cash and cash equivalents (1) |  | 2 |  | 9 |  |  | 9 |  |  | 9 |  |  | 9 |
Trust assets for nonqualified deferred compensation plans | Other assets |  | 1 |  | 154 |  |  | 154 |  |  | 129 |  |  | 129 |
|  |  |  |  | $ | 258 |  |  | $ | 258 |  |  | $ | 381 |  |  | $ | 381 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Notes and loans payable | Notes and loans payable (2) |  | 2 |  | $ | 4 |  |  | $ | 4 |  |  | $ | 50 |  |  | $ | 50 |
Long-term debt | Long-term debt (3) |  | 2 |  | 2,481 |  |  | 2,341 |  |  | 2,477 |  |  | 2,327 |
|  |  |  |  | $ | 2,485 |  |  | $ | 2,345 |  |  | $ | 2,527 |  |  | $ | 2,377 |
(1)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. (2)Notes and loans payable are composed of outstanding U.S. commercial paper balances and/or amounts drawn on the Company’s credit agreements, all of which are recorded at cost, which approximates fair value. (3)Long-term debt is recorded at cost. The fair value of Long-term debt was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2. Furthermore, impairment charges of $445 were record during fiscal year 2023, of which $306 and $139 related to goodwill and certain indefinite-lived trademarks, respectively. These adjustments were included as noncash charges in the consolidated statements of earnings. The nonrecurring fair values utilized included unobservable Level 3 inputs based on management’s best estimates and assumptions. See Note 8 for additional information.

X
- Definition Financial Instruments and Fair Value Measurements [Abstract] + References No definition available. + Details
Name: | clx_FinancialInstrumentsAndFairValueMeasurementsAbstract
Namespace Prefix: | clx_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Financial Instruments And Fair Value Measurements + References No definition available. + Details
Name: | clx_FinancialInstrumentsAndFairValueMeasurementsTextBlock
Namespace Prefix: | clx_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration