Company: CLX
Filing Date: 2025-02-03
Form Type: 10-Q
Source: 0000021076-25-000013
Chunk: 29

Company: CLOROX CO /DE/
Filing Date: 2025-02-03
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 12 11.4 10.4 Research and development costs62 61 2 1.8 1.8 

Selling and administrative expenses, as a percentage of net sales, increased by 40 basis points and decreased by 140 basis points in the current three and six month periods, respectively, while dollars decreased in both the current three and six month periods. The dollar decrease in selling and administrative expenses in the current three month period was primarily due to incremental costs resulting from the cyberattack in the prior period and the impact from the divestitures in the current period. The dollar decrease in selling and administrative expenses in the current six month period was primarily due to incremental costs resulting from the cyberattack and an arbitral decision related to a commercial dispute in the prior period. For further information on the cyberattack, see Notes to Condensed Consolidated Financial Statements.

Advertising costs, as a percentage of net sales, increased by 200 basis and 100 basis points in the current three and six month periods, respectively, versus the prior periods. The dollar increase in advertising costs reflects the Company’s continued support behind its brands. The Company’s U.S. retail advertising spend as a percentage of net sales increased from 10% to 12% versus the prior three month period.

Research and development costs, both as a percentage of net sales and dollars, were essentially flat in both the current three and six month period as compared to the prior periods. The Company continues to invest behind product innovation and cost savings.

24

RESULTS OF OPERATIONS (Continued)

 Loss on divestiture, pension settlement charge, interest expense, other (income) expense, net and the effective tax rate on earnings 

Three months endedSix months ended12/31/202412/31/202312/31/202412/31/2023Loss on divestiture$— $— $118 $— Pension settlement charge— 171 — 171 Interest expense22 26 43 47 Other (income) expense, net(23)(7)(45)5 Effective tax rate on earnings18.1 %29.3 %28.2 %26.7 %

Loss on divestiture of $118 in the current six month period reflects the loss on the divestiture of the Better Health VMS business. See Notes to Condensed Consolidated Financial Statements for further information.

Pension settlement charge of $171 in both the prior three and six month