Company: CLX
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000021076-25-000053
Chunk: 16

Company: CLOROX CO /DE/
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 the results and the Better Health VMS business, through the date of divestiture.The principal measure of segment profitability used by the Chief Operating Decision Maker (CODM), identified as the Company's Chair and Chief Executive Officer, is segment adjusted earnings (losses) before interest and income taxes (segment adjusted EBIT). Segment adjusted EBIT is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as the pension settlement charge, incremental charges and insurance recoveries related to the August 2023 cyberattack, asset impairments, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions / divestitures and other nonrecurring or unusual items impacting comparability).The CODM uses this measure to assess the operating results and performance of its segments, monitor actual results as compared to plan, perform analytical comparisons, identify strategies to improve performance and allocate resources to each segment as it removes the impact of the items that management believes do not directly reflect the performance of each segment’s underlying operations.

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NOTE 12. SEGMENT RESULTS (Continued)

Net sales by segment and a reconciliation to the Company’s consolidated net sales for the three months ended September 30: Net salesThree months ended9/30/20259/30/2024Health and Wellness$565 $698 Household362 447 Lifestyle245 320 International253 259 Reportable segment total$1,425 $1,724 Corporate and Other4 38 Total$1,429 $1,762 All intersegment sales are eliminated and are not included in the Company’s reportable segments’ net sales.Segment adjusted EBIT, including the significant segment expense provided to the CODM, and a reconciliation to earnings before income taxes for the three months ended September 30:Segment adjusted earnings (losses) before interest and income taxesThree months ended September 30, 2025Health and WellnessHouseholdLifestyleInternationalTotalNet sales$565 $362 $245 $253 Cost of products sold291 246 126 165 Other segment items (1)150 89 81 69 Segment adjusted EBIT$124 $27 $38 $19 $208 Corporate and Other (48)Interest income2 Interest expense(23)Digital capabilities and productivity enhancements investment (2)(32)Earnings before income taxes$107