The Clorox
Company Pro Forma
Disclosure for 8-K (millions)  The following unaudited
pro forma condensed consolidated statements of earnings reflect
adjustments to Clorox’s historical consolidated statement of
earnings for the year-ended June 30, 2004 and the three month
period ended September 30, 2004 to give effect to:  The exchange of a Clorox subsidiary for Henkel
KGaA’s, a major shareholder, interest in Clorox common stock
as if it had occurred on July 1, 2003. The transitional services to be provided by
Clorox to Henkel, including some interim production of insecticides
and Soft Scrub. The issuance of long-term debt to reduce
outstanding commercial paper balances initially used to fund the
exchange transaction. The following unaudited
pro forma condensed consolidated balance sheet reflects adjustments
to Clorox’s historical consolidated balance sheet at
September 30, 2004 to give effect of this exchange, as if it has
occurred on September 30, 2004. PRO FORMA CONDENSED
CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)The Clorox Company Three-month period ended
September 30, 2004As
ReportedEffect
of  Share ExchangeOther        
Pro Forma AdjustmentsPro
FormaIn millions, except share
and per-share amountsNet sales$1,090$(42)$-$1,048Cost of products
sold605(14)-591Gross profit485(28)-457Selling and administrative
expenses132(2)-130Advertising costs108(3)-105Research and development
costs21--21Restructuring and asset
impairment costs30--30Interest expense8-20(i)28Other (income) expense,
net(3)3--Earnings from continuing
operations before income taxes189(26)(20)143Income taxes66(9)(k)(7)(j)50Earnings from continuing
operations$123$(17)$(13)$93Earnings per common
shareBasicContinuing
operations0.580.62DilutedContinuing
operations0.570.61Weighted average common
shares outstanding (in thousands)Basic212,905151,499Diluted215,117153,712 
  PRO FORMA CONDENSED
CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)The Clorox Company Year ended June 30,
2004As
ReportedEffect
of  Share ExchangeOther          
Pro Forma AdjustmentsPro
FormaIn millions, except share
and per-share amountsNet sales$4,324$(162)$33(l)$4,195Cost of products
sold2,387(56)29(l)2,360Gross profit1,937(106)41,835Selling and administrative
expenses552(9)-543Advertising costs429(9)-420Research and development
costs84(1)-83Interest expense30-77(m)107Miscellaneous, net211-13Earnings from continuing
operations before income taxes840(98)(73)669Income taxes294(32)(o)(27)(n)235Earnings from continuing
operations$546$(66)$(46)$434Earnings per common
shareBasic:Continuing
operations2.582.90DilutedContinuing
operations2.552.85Weighted average common
shares outstanding (in thousands)Basic211,683149,669Diluted214,371152,358 
  PRO FORMA CONDENSED
CONSOLIDATED BALANCE SHEET (UNAUDITED)The Clorox Company As of September 30, 2004,
In millionsAs ReportedPro Forma
AdjustmentsOffering
AdjustmentsPro
FormaAssetsCurrent assetsCash and cash
equivalents
.........................................................................................$255$(2,105)(a,
c)$2,111(c,
g)$261Receivables,
net
........................................................................................................385--385Inventories
...............................................................................................................305--305Other current
assets..................................................................................................53--53Assets held
for
exchange..........................................................................................132(132)(a)--Total current
assets
....................................................................................................1,130(2,237)2,1111,004Property, plant and
equipment, net
.............................................................................995--995Goodwill, net
...............................................................................................................736--736Trademarks and other
intangible assets, net
.................................................................602--602Other assets
.................................................................................................................309--309Total assets
.................................................................................................................$
3,772$(2,237)$2,111$
3,646Liabilities and
Stockholders’ EquityCurrent liabilitiesNotes and
loans payable
...........................................................................................$170-471(g)$641Current
maturities of long-term debt
........................................................................3--3Accounts
payable
.....................................................................................................287--287Accrued
liabilities
.....................................................................................................6176(h)-623Income taxes payable
...............................................................................................18--18Total current
liabilities
..........................................................................................1,09564711,572Long-term debt
...........................................................................................................474-1,640(g)2,114Other liabilities
............................................................................................................385--385Deferred income taxes
.................................................................................................174(8)(b)-166Stockholders’
equityCommon
stock250--250Additional
paid-in capital
.........................................................................................304--304Retained
earnings
.....................................................................................................2,906582(d)-3,488Treasury
shares, at cost(1,552)(2,843)(e)-(4,395)Accumulated
other comprehensive net losses
...........................................................(252)26(f)-(226)Unearned
compensation
...........................................................................................(12)--(12)Stockholders’ equity
....................................................................................................1,644(2,235)-(591)Total liabilities and
stockholders’ equity
......................................................................$3,772$(2,237)$2,111$3,646  
  Pro Forma
Adjustments  Balance sheet
adjustments:  Reflects the elimination of assets
and liabilities being transferred to Henkel. Reflects the income tax benefit
from the release of deferred tax liabilities. Reflects estimated transaction
costs of $7. Reflects the estimated gain on the
transaction, including the release of deferred tax liabilities of
$8 and estimated transaction costs of $7. Reflects the treasury shares
expected to be purchased by the Company in the agreed upon
transaction with Henkel, including $4 of estimated share repurchase
costs. Reflects the estimated $26
translation impact of HIBSA, and other entities. Reflects the expected issuance of
commercial paper of $2,121, of which $1,650 will be refinanced
shortly after with long-term debt. The long-term debt is net of
estimated loan issuance costs of $10. The share exchange agreement
includes a purchase price adjustment based on the working capital
balance at the date of the close. The entry reflects the estimated
purchase price adjustment.  Statement of earnings
adjustments for the three months ended September 30, 2004:  Reflects 3 months of interest
expense and debt issuance amortization expense on $471 of
commercial paper and $1,650 of long-term debt expected to be issued
to fund this transaction. The weighted average interest rate on the
commercial paper and long-term debt are estimated to be 1.5% and
4.1%, respectively. Reflects the estimated incremental
tax benefit for federal and state taxes from interest expense using
a 37.4% effective tax rate. Reflects the estimated blended
domestic and international effective tax rates for the transferred
business and HIBSA  Statement of earnings
adjustments for the year ended June 30, 2004:  Reflects the estimated net sales
and cost of products sold from the transitional services with
Henkel. Reflects 12 months of interest
expense and debt issuance amortization expense on $471 of
commercial paper and $1,650 of long-term debt expected to be issued
to fund this transaction. The average weighted average interest
rate on the commercial paper and long-term debt are 1.1% and 4.1%,
respectively. Reflects the estimated incremental
tax benefit for federal and state taxes from interest expense using
a 37.4% effective tax rate. Reflects the estimated blended
domestic and international effective tax rates for the transferred
business and HIBSA.