Company: CLX
Filing Date: 2025-10-07
Form Type: DEF 14A
Source: 0001552781-25-000311
Chunk: 84

Company: CLOROX CO /DE/
Filing Date: 2025-10-07
Form: DEF 14A
Chunk 84
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 on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

| The                                              
 Clorox Company 2025 Proxy Statement > Appendix A | A-20 |

|                         |     | Valuation                                                                                                                              
 of Venture Agreement Terminal Obligation                                                                                               |
| Description             
 of the Matter           |     | As                                                                                                                                     
 discussed in Note 8 of the consolidated financial statements, the Company has an agreement with The Procter & Gamble Company           
 (P&G) for the Company’s Glad bags and wraps business, for which the Company is required to purchase P&G’s 20%                          
 interest in the venture for cash at fair value of the global Glad business upon termination of the agreement. At June 30, 2025, $501   
 million has been recognized as a venture agreement terminal obligation and represented 10% of total liabilities.                       |
|                         |     | Auditing                                                                                                                               
 the Company’s Glad venture agreement terminal obligation is complex and highly judgmental and required the involvement