Company: CLX
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000021076-25-000023
Chunk: 85

Company: CLOROX CO /DE/
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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estiture, pension settlement charge, interest expense, other (income) expense, net and the effective tax rate on earnings (losses) 

Three months endedNine months ended3/31/20253/31/20243/31/20253/31/2024Loss on divestiture$— $240 $118 $240 Pension settlement charge— — — 171 Interest expense23 22 66 69 Other (income) expense, net(34)(2)(79)3 Effective tax rate on earnings (losses)24.8 %(18.6)%26.9 %41.9 %

Loss on divestiture of $240 in the prior three and nine month periods reflected the loss on the divestiture of the Argentina business. The loss on divestiture of $118 in the current nine month period reflects the divestiture of the Better Health VMS business. See Notes to Condensed Consolidated Financial Statements for further information.

Pension settlement charge of $171 in the prior nine month period reflected the settlement of the domestic qualified pension plan. See Notes to Condensed Consolidated Financial Statements for further information.

Other (income) expense, net was ($34) and ($2) in the current and prior three month periods, respectively, and ($79) and $3 in the current and prior nine month periods, respectively. The variance between the current and prior three month periods was primarily due to the benefit of insurance recoveries related to the cyberattack in the current period. The variance between the current and prior nine month periods was primarily due to the benefit of insurance recoveries related to the cyberattack in the current period and unfavorable foreign exchange rates primarily related to Argentina in the prior period. For further information on the cyberattack, see Notes to Condensed Consolidated Financial Statements. 

The effective tax rate on earnings (losses) was 24.8% and 26.9% for the current three and nine month periods, respectively, and (18.6)% and 41.9% for the prior three and nine month periods, respectively. The change in tax rate on earnings in the current three month period as compared to the prior period was primarily driven by the divestiture of the Argentina business and a legal entity reorganization both in the prior period. The change in tax rate on earnings in the current nine month period as compared to the prior period was primarily driven by the divestiture of the Argentina business and