Company: CLX
Filing Date: 2025-02-03
Form Type: 10-Q
Source: 0000021076-25-000013
Chunk: 64

Company: CLOROX CO /DE/
Filing Date: 2025-02-03
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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 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 December 31, 2024, respectively, and 29.3% and 26.7% for the three and six months ended December 31, 2023, respectively. The lower tax rate in the current three month period compared to the prior three month period was primarily driven by an international legal entity reorganization and higher compensation deductions in the current period.Income taxes paid, net of refunds, were $148 and $194 for the six months ended December 31, 2024 and 2023, respectively. The higher payments in the prior period were primarily driven by income tax payments for fiscal year 2023 that were deferred to fiscal year 2024 as a result of tax relief provided by the IRS due to winter storms in California.

NOTE 10. NET EARNINGS PER SHARE (EPS)

The following is the reconciliation of the weighted average number of shares outstanding (in thousands) used to calculate basic net EPS to those used to calculate diluted net EPS:Three months endedSix months ended12/31/202412/31/202312/31/202412/31/2023Basic123,766124,176123,781124,075Dilutive effect of stock options and other896444888560Diluted124,662124,620124,669124,635Antidilutive stock options and other8413,527 841 3,527 Basic net earnings per share and Diluted net earnings per share are calculated on Net earnings attributable to Clorox.

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NOTE 11. COMPREHENSIVE INCOME

The following table provides a summary of Comprehensive income for the periods indicated:Three months endedSix months ended12/31/202412/31/202312/31/202412/31/2023Net earnings$