Company: CLX
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000021076-25-000023
Chunk: 14

Company: CLOROX CO /DE/
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 in Argentina in the three and nine months ended March 31, 2024.(2)Restructuring costs related to the implementation of the Company’s streamlined operating model. See Note 6 for additional details.(3)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.  (4)Insurance recoveries related to the August 2023 cyberattack. See Note 4 for additional details.

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NOTE 11. 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 24.8% and 26.9% for the three and nine months ended March 31, 2025, respectively, and the effective tax rate on (losses) earnings was (18.6)% and 41.9% for the three and nine months ended March 31, 2024, respectively. The change in tax rate on earnings in the current three month period as compared to the prior period was primarily driven by the divestiture of the Argentina business and a legal entity reorganization both in the prior period. The change in tax rate on earnings in the current nine month period as compared to the prior period was primarily driven by the divestiture of the Argentina business and a legal entity reorganization both in the prior period, and the nondeductibility of the loss on the divestiture of the Better Health VMS business in the current period.Income taxes paid, net of refunds, were $208 and $314 for the nine months ended March 31, 2025 and 2024, respectively. The lower tax payments in the current nine-month period were primarily driven by payments of fiscal year 2023 income taxes in fiscal year 2024, that were previously deferred as a result of the relief