Company: CLX
Filing Date: 2025-02-03
Form Type: 10-Q
Source: 0000021076-25-000013
Chunk: 12

Company: CLOROX CO /DE/
Filing Date: 2025-02-03
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 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.

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NOTE 8. OTHER (INCOME) EXPENSE, NET

The major components of Other (income) expense, net were:Three months endedSix months ended12/31/202412/31/202312/31/202412/31/2023Amortization of trademarks and other intangible assets$5 $7 $11 $15 Trust investment (gains) losses, net1 (12)(8)(10)Net periodic benefit (credit) cost (4)5 (3)10 Foreign exchange transaction (gains) losses, net (1)2 15 3 23 Income from equity investees(1)(1)(3)(2)Interest income(2)(7)(5)(17)Gain on sale-leaseback transaction (2)— (16)— (16)Cyberattack insurance recoveries (3)(23)— (32)— Other(1)2 (8)2 Total$(23)$(7)$(45)$5 (1)Foreign exchange losses were primarily related to the Company’s operations in Argentina in the three and six month periods ended December 31, 2023.(2)On December 14, 2023, the Company completed an asset sale-leaseback transaction on a warehouse in Fairfield, California. The transaction resulted in a $16 gain which was recognized in Other (income) expense, net in the Health and Wellness segment. 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 sale-leaseback transaction.  (3)Insurance recoveries related to the August 2023 cyberattack. See Note 3 for additional details.

NOTE 9. INCOME TAXES

In determining its quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The effective tax rate on earnings was 18.1% and 28.2% for the three and six months ended