Company: CLX
Filing Date: 2025-10-07
Form Type: DEF 14A
Source: 0001552781-25-000311
Chunk: 63

Company: CLOROX CO /DE/
Filing Date: 2025-10-07
Form: DEF 14A
Chunk 63
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.5% |
| Advertising                 
 costs                       |      |   770 |     832 |     -7 |   10.8 |  11.7 |
| Research                    
 and development costs       |      |   121 |     126 |     -4 |    1.7 |   1.8 |

Selling and administrative expenses, as a percentage of net sales, decreased by 70 basis points in fiscal year 2025. The dollar decrease in selling and administrative expenses was primarily due to productivity initiatives and the impact from divestitures both in the current year. Advertising costs, as a percentage of net sales, decreased 90 basis points in fiscal year 2025. The Company continues to support its brands. The Company’s U.S. retail advertising spend as a percentage of net sales was 12% for fiscal year 2025 and 13% for fiscal year 2024. Research and development costs, as a percentage of net sales, were essentially flat in the current year as compared to the prior year. The Company continues to invest behind product innovation and cost savings.

Loss on divestiture, pension settlement charge, Interest expense, Other expense (income), net and Effective tax rate on earnings

|                                |  2025 |  2024 |
| Loss on divestiture            | $ 118 | $ 240 |
| Pension settlement charge      |     — |   171 |
| Interest expense               |    88 |    90 |
| Other (income) expense, net    |   -86 |    24 |
| Effective tax rate on earnings | 23.6% | 26.5% |

Loss on divestitureof $118 in fiscal year 2025 reflects the divestiture of the Better Health VMS business. The loss on divestiture of $240 in fiscal year 2024 reflected the loss on the divestiture of the Argentina business. See Notes to Consolidated Financial Statements for further information. Pension settlement chargewas $171 in fiscal year 2024 and reflected the settlement of the domestic qualified pension plan. See Notes to Consolidated Financial Statements for further information. Other (income) expense, netwas ($86) and $24 in fiscal year 2025 and fiscal year 2024, respectively. The variance was primarily due to the benefit of insurance recoveries related to the cyberattack in the current year and unfavorable exchange rates primarily related to Argentina in the prior year. The effective tax