Company: CLX
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000021076-25-000023
Chunk: 60

Company: CLOROX CO /DE/
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 tax loss of $118 during the nine months ended March 31, 2025.The major classes of assets and liabilities of the Better Health VMS business divested as of September 10, 2024 were as follows:DivestitureWorking capital, net$41 Property, plant and equipment, net59 Trademarks, net37 Other intangible assets, net58 Other assets (1)45 Other liabilities(1)Net assets divested$239 (1) Includes net deferred tax assets of $45The following table presents Net sales of the Better Health VMS business, which includes the financial results up to September 10, 2024, the date of sale:Three months endedNine months ended3/31/20253/31/20243/31/20253/31/2024Net sales$— $54 $38 $166 The divestiture of the Company’s Better Health VMS business does not meet the criteria to be reported as discontinued operations in the condensed consolidated financial statements as the Company’s decision to divest this business did not represent a strategic shift that will have a major effect on the Company’s operations and financial results.Divestiture of Argentina BusinessOn March 20, 2024, the Company completed the divestiture of its Argentina business. As a result of the transaction, the Company recorded a pre-tax loss of $240 during the third quarter of fiscal year 2024. Net sales of the Argentina business for the three and nine months ended March 31, 2024 were $43 and $123, respectively. Refer to Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 for further information related to the Argentina business divestiture.

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NOTE 4. AUGUST 2023 CYBERATTACK

On Monday, August 14, 2023, the Company identified unauthorized activity on some of its Information Technology (IT) systems and immediately began taking steps to stop and remediate the activity. The Company took certain systems offline, engaged third-party cybersecurity experts and implemented its business continuity plans. However, the incident resulted in wide-scale disruptions to the Company’s business operations. The impacts of these system disruptions resulted in a negative impact on net sales and earnings. The Company experienced lessening operational impacts in the second quarter of fiscal year 2024 and has since returned to normalized operations.The Company recorded insurance recoveries of $35 and $