exo-is/governance-reporting-on-listed-companies huggingface dataset:
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
United Nations Sustainable Development Goals (continued)
Targets and actions FY22 outcomes and impacts
Goal 12 — Responsible Consumption and Production — Ensure Sustainable Consumption and Production Patterns
We set ambitious targets to reduce plastic and other waste by 2030. These efforts are in • 13% combined virgin plastic and fiber packaging reduction, per case of
conjunction with long-standing efforts to reduce our waste impacts across our value chain, product sold vs. 2018 baseline, as of CY215.✪
from sourcing our raw materials to within our own manufacturing and operations, as well as
• 84% of packaging is recyclable, reusable or compostable, as of CY216.✪
during consumer use. We are also focusin
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
ESG endnotes
Throughout report
• Reviewed by Ernst & Young LLP. Refer to pages 48-50 for the Review Report and 6 Percentage that is recyclable, reusable and/or compostable: Data has been
exhibit A: The Clorox Company Schedule of Selected Quantitative Performance calculated using the Ellen MacArthur Foundation’s recyclability assessment tool and
Indicators for the Year Ended Dec. 31, 2021, or June 30, 2022. Recycling Rate Survey, and the Association of Plastic Recyclers Design Guide for
Plastics Recyclability. Recyclability reporting is based on CY21 U.S. sales data and is
• ✪ IGNITE ESG goal
estimated to reflect global results for this metric.
7 Zero waste to landfill: Where infrastructure allows. Cloro
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
ESG endnotes
9 Energy: Through our first VPPA and other market purchases of RECs, Clorox met would recommend the company as a good place to work. Inclusion index and
our 100% renewable electricity goal beginning in January 2021, four years ahead employee engagement data were measured through an FY22 engagement
of the original target date. Our first VPPA for 70 megawatts was executed in 2019 survey administered by Perceptyx between February and March 2022, and 6,527
and began producing renewable energy for Clorox in January 2021. Our second employees participated. Perceptyx’s Fortune 500 benchmark is comprised of
VPPA for 47 MW was executed in April 2022 and is expected to begin producing 98 companies an
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
About this report
Content priorities Third-party ESG frameworks
The Clorox Company’s integrated annual report highlights our financial This year’s report has been developed in alignment with the Sustainability
and environmental, social and governance performance. Unless otherwise Accounting Standards Board’s Household and Personal Products standard,
noted, fiscal year financial performance is presented in accordance the Task Force on Climate-Related Financial Disclosures and the United
with generally accepted accounting principles in the U.S., which include Nations Global Compact’s Ten Principles. We also disclose how our priority
principles for determining materiality related to financial reporting. Fo
Keyword: governance
MESSAGE STRATEGY SNAPSHOT TRANSFORMATION LIVES WORLD COMMUNITIES GOVERNANCE STATEMENTS CREATION REPORTING REPORT
Shareholder information
Stock listing and number of For more information or plan materials, management’s expectations. The information in this report reflected management’s
record holders visit thecloroxcompany.com > estimates, assumptions and projections as of Aug. 10, 2022. Clorox has not made
The Clorox Company’s common Investors>Investor Resources>Direct updates since then and makes no representation, express or implied, that the
stock is listed on the New York Stock Stock Purchase Plan or contact information is still current or complete. The company is under no obligation to update
Exchange, identified by the symbol CLX. Computershare. any part of this document.
As of July 25, 2022, the number of r
Keyword: tax
(1) Adjusted EBIT (a non-Generally Accepted Accounting Principles [non-GAAP] measure) represents earnings before income taxes (a GAAP measure), excluding interest
income, interest expense and other significant items that are nonrecurring or unusual (such as asset impairments, charges related to the streamlined operating model,
charges related to the digital capabilities and productivity enhancements investment, significant losses/gains related to acquisitions and other nonrecurring or unusual
items). Adjusted EBIT margin is the ratio of adjusted EBIT to net sales. The four-year average adjusted EBIT margin growth/decrease is calculated as the sum of the growth/
decrease in adjusted EBIT margin between each of fiscal years 2019 and 2020, 2020 and 2021, 2021 and 2022, and 2022 and 2023, divided by four.
(2) Free cash flow (a non-GAAP measure) represents net cash pr
Keyword: tax
Before Income Taxes to EBITi, iii and Adjusted EBITii, iii
Otherc 15 7
Dollars in millions and percentages
FY23 FY22 FY21
based on rounded numbers
Total $ 100 $ 61
Earnings (losses) before income taxes $ 238 $ 607 $ 900
a. C omprised of third-party consulting fees incurred to assist in the project
Interest income (16) (5) (5) management and the preliminary project stage of this transformative
investment. The company relies on consultants for certain capabilities required
Interest expense 90 106 99 for these programs that it does not maintain internally. These costs support the
implementation of these programs incremental to the company’s normal IT costs
EBITi, iii $ 312 $ 708 $ 994 and will not be incurred following implementation.
b. C omprised of labor cost
Keyword: tax
i EBIT (a non-GAAP measure) represents earnings (losses) before income taxes
(a GAAP measure), excluding interest income and interest expense, as reported
above. EBIT margin is the ratio of EBIT to net sales.
ii Adjusted EBIT (a non-GAAP measure) represents earnings (losses) before income
taxes (a GAAP measure), excluding interest income, interest expense and other
significant items that are nonrecurring or unusual (such as asset impairments,
charges related to the streamlined operating model, charges related to the
digital capabilities and productivity enhancements investment, significant
losses/(gains) related to acquisitions and other nonrecurring or unusual items as
reported above). Adjusted EBIT margin is the ratio of adjusted EBIT to net sales.
23 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Inno
Keyword: tax
iii The tax rate applied is the effective tax rate before the identified U.S. GAAP items
Dollars in millions FY23 FY22 FY21 was 23.6%, 22.5% and 20.7% in fiscal years 2023, 2022, and 2021, respectively.
The difference between the fiscal year 2023 effective tax rate on earnings of
32.4% is due to the tax rate impact of the FY23 VMS impairment and incremental
Earnings before income taxes $ 238 $ 607 $ 900 operating expenses recorded related to the implementation of the Company’s
digital capabilities and productivity enhancements investment of (8.9)% and
Add back: 0.1%, respectively. The difference between the fiscal year 2022 effective tax rate
on earnings of 22.4% is due to the tax rate impact of the incremental operating
expenses recorded related to the implementation of the Company’s
Keyword: tax
between the fiscal year 2021 effective tax rate on earnings of 20.1% is due to the tax
Interest expense 90 106 99 rate impact of the Professional Products supplier charge, FY21 VMS impairment, and
Saudi JV acquisition gain of 0.1%, (0.4)%, and 0.9%, respectively.
Less:
iv Total capital employed represents total assets less non-interest bearing liabilities.
Adjusted capital employed represents total capital employed adjusted to add back
Saudi JV acquisition gainii — — (82) current year after tax U.S. GAAP items, as applicable, and deduct the current year
after tax noncash, nonrecurring gain. Average capital employed is the average of
Earnings before income taxes, certain
933 774 1,274 adjusted capital employed for the current year and total capital employed for the
U.S. GAAP items and interest expense
prior year, based on yea
Keyword: tax
Income taxes on earnings before income taxes,
certain U.S. GAAP items and interest expenseiii 220 174 264 which was 9% for all fiscal years presented. The calculation of capital charge
includes the impact of rounding numbers.
Adjusted after tax profit $ 713 $ 600 $ 1,010
Less: After tax profit attributable to
12 9 9
noncontrolling interests
Dollars in millions FY23 FY22 FY21
Adjusted after tax profit attributable to Clorox 701 591 1,001
Total assets $ 5,945 $ 6,158 $ 6,334
Average capital employediv $ 3,383 $ 3,428 $ 3,655
Less:
Less: Capital chargev $ 304 $ 309 $ 329
Accounts payable and
Economicprofiti (Adjusted after-tax profit $ 397 $ 282 $ 672 accrued liabilitiesvi 1,650 1,463 1,670
attributable to Clorox less capital charge)
Current operating lease liabilities 87 78 81
i Econo
Keyword: tax
mic profit (EP) is defined by the Company as earnings before income taxes, Income taxes payable 121 — —
excluding certain U.S. GAAP items (such as asset impairments, charges related
to implementation of the streamlined operating model, charges related to digital
Long-term operating lease liabilities 310 314 301
capabilities and productivity enhancements investment, significant losses/
(gains) related to acquisitions and other nonrecurring or unusual items impacting
comparability) and interest expense; less income taxes (calculated based on the Other liabilitiesvi 804 778 819
Company’s effective tax rate excluding the identified U.S. GAAP items), and less
after tax profit attributable to noncontrolling interests, and less a capital charge Deferred income taxes 28 66 67
(calculated as average capital employed multiplied by a co
Keyword: tax
by the business to generate that profit. After tax certain U.S. GAAP itemsii 362 0 212
ii Certain U.S. GAAP charges includes incremental operating expenses related Adjusted capital employediv $ 3,307 $ 3,459 $ 3,608
to the implementation of the Company’s digital capabilities and productivity
enhancements investment, restructuring and related implementation costs related
to implementation of the streamlined operating model, noncash impairments Average capital employed $ 3,383 $ 3,428 $ 3,655
related to the Vitamins, Minerals and Supplements (VMS) business, noncash
charges on investments and related arrangements made with a Professional
Products business supplier and a noncash nonrecurring net gain related to the vi A ccounts payable and accrued liabilities and Other liabilities are adjusted
Keyword: tax
goodwill and trademarks was recorded of $445 ($362 after tax) related to
the VMS business.
ii During the year ended June 30, 2023, the company incurred approximately $60
($45 after tax) of restructuring and related costs, net for implementation of the
streamlined operating model.
iii D uring the year ended June 30, 2023 and June 30, 2022, the company incurred
approximately $100 ($76 after tax) and $61 ($47 after tax), respectively,
of operating expenses related to its digital capabilities and productivity 4Reconciliation of Free Cash Flow
enhancements investment.
iv Adjusted EPS is defined as diluted earnings per share that excludes or has Dollars in millions and percentages based
FY23 FY22 FY21
otherwise been adjusted for significant items that are nonrecurring or unusual. on rounded numbers
The in
Keyword: tax
come tax effect on non-GAAP items is calculated based upon the tax
laws and statutory income tax rates applicable in the tax jurisdiction(s) of the Net cash provided by operations — GAAP $ 1,158 $ 786 $ 1,276
underlying non-GAAP adjustment.
v Adjusted EPS is supplemental information that management uses to help Less: Capital expenditures 228 251 331
evaluate the company’s historical and prospective financial performance
on a consistent basis over time. Management believes that by adjusting for Freecashflow—non-GAAPi $ 930 $ 535 $ 945
certain items affecting comparability of performance over time, such as asset
impairments, charges related to the streamlined operating model, charges Free cash flow as a percentage of net sales —
12.6% 7.5% 12.9%
related to the digital capabilities and productivity enhan
Keyword: tax
Earnings before income taxes 238 607 900
Income taxes 77 136 181
Net earnings 161 471 719
Less: Net earnings attributable to noncontrolling interests 12 9 9
Net earnings attributable to Clorox $ 149 $ 462 $ 710
Net earnings per share attributable to Clorox
Basic net earnings per share $ 1.21 $ 3.75 $ 5.66
Diluted net earnings per share $ 1.20 $ 3.73 $ 5.58
Weighted average shares outstanding (in thousands)
Basic 123,589 123,113 125,570
Diluted 124,181 123,906 127,299
30 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
Keyword: tax
Foreign currency adjustments, net of tax 3 (45) 47
Net unrealized gains (losses) on derivatives, net of tax (22) 100 39
Pension and postretirement benefit adjustments, net of tax 5 12 8
Total other comprehensive (loss) income, net of tax (14) 67 94
Comprehensive income 147 538 813
Less: Total comprehensive income attributable to noncontrolling interests 12 9 9
Total comprehensive income attributable to Clorox $ 135 $ 529 $ 804
31 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
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CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30
2023 2022
DOLLARS IN MILLIONS, EXCEPT PER SHARE DAT
Keyword: tax
Income taxes payable 121 —
Total current liabilities 1,917 1,784
Long-term debt 2,477 2,474
Long-term operating lease liabilities 310 314
Other liabilities 825 791
Deferred income taxes 28 66
Total liabilities 5,557 5,429
Commitments and contingencies
Stockholders’ equity
Preferred stock: $1.00 par value; 5,000,000 shares authorized; none issued or outstanding — —
Common stock: $1.00 par value; 750,000,000 shares authorized; 130,741,461 shares issued
as of June 30, 2023 and 2022; and 123,820,022 and 123,152,132 shares outstanding as of 131 131
June 30, 2023 and 2022, respectively
Additional paid-in capital 1,245 1,202
Retained earnings 583 1,048
Treasury stock, at cost: 6,921,439 and 7,589,329 shares as of June 30, 2023
(1,246) (1,346)
and 2022, respec
Keyword: tax
Deferred income taxes (149) 5 (32)
Goodwill, trademark and other asset impairments 445 — 329
Settlement of interest rate derivative contracts — 114 —
Other 38 19 10
Changes in:
Receivables, net (13) (84) 82
Inventories, net 58 (18) (282)
Prepaid expenses and other current assets (1) 16 (30)
Account payable and accrued liabilities 157 (47) 311
Operating lease right-of-use assets and liabilities, net 1 (1) (2)
Income taxes payable/prepaid 152 35 (90)
Net cash provided by operations 1,158 786 1,276
Investing activities:
Capital expenditures (228) (251) (331)
Businesses acquired, net of cash acquired — — (85)
Other 5 22 (36)
Net cash used for investing activities (223) (229) (452)
34 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Ev
Keyword: tax
Income taxes paid, net of refunds 73 100 303
Noncash financing activities:
Cash dividends declared and accrued, but not paid 16 14 156
35 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
AUDITOR STATEMENT
Report of Independent Registered Public Accounting Firm on Condensed
Financial Statements
To the Stockholders and the Board of We also have audited, in accordance with the standards
Directors of The Clorox Company of the Public Company Accounting Oversight Board
(United States), the effectiveness of The Clorox Company’s
internal control over financial
Keyword: tax
• Tax and economic contribution • Advocacy and public practices
• Cybersecurity, data security and privacy • Product accessibility and affordability
41 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
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ESG
PROGRESS KEY
Achieved: Met IGNITE goal
REPORTING
Achieved/ongoing: Met IGNITE goal this fiscal year; commitment to
continue meeting same goal annually through 2030
On track: Meeting internal milestones to achieve goal
In progress: Taking action to achieve goal or set targets; however,
internal milestones have not yet been met
HEALTHY LIVES
PERF
Keyword: tax
fees or taxes paid by manufacturers or importers to fund recycling and waste management
initiatives, with emerging regulations focused heavily on plastic packaging. The financial impact
to Clorox is estimated based on potential fees charged to the company for selling packaging,
including those made with virgin plastic, a significant contributor to GHG emissions, in the medium-
term. To mitigate these risks, we are focusing on reducing our use of virgin plastics as part of our
commitment to achieving SBTs by 2030 and net-zero emissions by 2050.
• Transitional risks (medium-term, [2-5 years]) and opportunities (long-term, [5-10 years])
associated with shifts in market preferences as consumers seek products and services from
companies that are proactively
Keyword: tax
• Quantitative definitions include percentage of earnings before income taxes and volatility
of Clorox’s share price. Given that businesses are not static and can experience growth and
contractions, we chose to use a percentage of earnings to identify substantive financial and
strategic risks.
• Qualitative definitions address topics such as reputation/brand equity and customer and
consumer impacts.
48 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
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TCFD FRAMEWORK (continued)
CORE TCFD
THE CLOROX COMPANY DISCLOSURE
ELEMENT DISCLOSURE
Risk Process for Based on these definitions, we rate potential risk impacts from v
Keyword: governance
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TABLE OF CONTENTS
6 22
Company Purpose & Strategy Financial Performance
7 44
Company Snapshot ESG Reporting
57
About this Report
STRENGTH IN NUMBERS:
FY23 AT A GLANCE
$7.4B
net sales
8,700
employees
100+
markets
25
country/territory
operations
80%
of portfolio is
#1 or #2 share brands
9 OUT OF 10
u.s. homes have
our products
60%
of portfolio with superior
consumer value*
* as measured by our consumer value metricCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
We see a strong, Resilient company
Guided by our IGNITE strategy, Clorox is position
Keyword: governance
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
DEAR STAKEHOLDER,
Fiscal 2023 was a milestone year as we returned to growth and
expanded margins amid challenging operating conditions, all while
living our purpose and values.
Though we faced significant inflationary pressures, demand normalization and pockets of supply chain disruptions, we
went into the year committed to driving top-line growth and rebuilding margins while investing in the long-term health of
our brands, categories and capabilities. And, our team delivered just that. Furthermore, by playing to win in an increasingly
competitive marketplace, we continued to take the right steps to build a stronger, more resilient company and create long-
term value for stakeholders.
This fiscal year we
Keyword: governance
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The investments we’re making
to develop consumer-inspired
innovation, strengthen our
advantaged portfolio of
superior brands and transform
our company are reinforcing
TRANSFORMING OUR COMPANY THROUGH IGNITE
our competitive advantage
IGNITE continues to be the right strategy for our company,
and positioning us to drive
balancing the delivery of short-term results with our long-
term vision. The investments we’re making to develop sustainable, profitable growth.”
consumer-inspired innovation, strengthen our advantaged
portfolio of superior brands and transform our company
are reinforcing our competitive advantage and positioning
us to drive sustainable, profitable growth. At the same
time, IGNITE fully int
Keyword: governance
governance considerations into our commercial plans and transformation and new operating model to create a more
business units to mitigate risks, increase resilience and consumer-obsessed, faster and leaner company, and
maximize opportunities and impact. maximize our ability to grow and operate more efficiently.
Our digital transformation, which will enable new ways of
Fuel Growth: We leaned into our hallmark cost-savings
working and put in place the capabilities and technology
program and delivered savings above our IGNITE goal
to increase our speed and agility, is on track, and we’re set
of 175 basis point EBIT margin accretion. On top of that,
to roll out our new enterprise resource planning platform
we generated incremental savings from our strea
Keyword: governance
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DELIVERING ACCELERATED FINANCIAL PERFORMANCE
ANNUAL GOALS IGNITE PROGRESS*
4.4% (four-year compound annual
Sales Growth +3 to 5%
growth rate)
-140 basis points (four-year
Adjusted EBIT Margin Improvement +25 to 50 basis points
average)1
Free Cash Flow % of Sales 11 to 13% 13.1% (four-year average)2
* As of June 30, 2023.
(1) Adjusted EBIT (a non-Generally Accepted Accounting Principles [non-GAAP] measure) represents earnings before income taxes (a GAAP measure), excluding interest
income, interest expense and other significant items that are nonrecurring or unusual (such as asset impairments, charges related to the streamlined operating model,
charges related to the digital capabilities and productivity
Keyword: governance
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programs globally, including inclusive leadership As a result of our efforts, we earned the top ranking on
training; and progressing on diverse representation and Barron’s list of 100 Most Sustainable U.S. Companies for
advancement efforts while promoting equitable practices. 2023. While we’re incredibly honored by this achievement,
Innovation is people-led, and we know that creating a we have more work ahead to continue creating more
workplace where people can be their best selves, do their value for our stakeholders.
best work and play an active role helping us innovate and
CONFIDENCE IN THE FUTURE
grow will make Clorox a stronger company and accelerate
our IGNITE journey. We expect the environment to
Keyword: governance
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COMPANY PURPOSE & STRATEGY
PURPOSE VISION OBJECTIVE
We champion people to be well and Exceptional innovators who earn Deliver purpose-driven growth.
thrive every single day. people’s enduring loyalty.
X P E
RIENCES
E
E
T
A
V O
O I
L
N O
N F
I T
R
O
P
E
V
L
O
V
E
F
UEL
GROWTH
REIMAGINE WOR K
IGNITE STRATEGY ESG
Integrated strategic choices
FUEL GROWTH INNOVATE EXPERIENCES REIMAGINE WORK EVOLVE PORTFOLIO
Widen the funnel on how Turn data into insights Galvanize our people with Broaden our playing field
we deliver cost savings, to build purpose-driven, a bolder, more inclusive in and around our core
leveraging technology and personalized brands and workplace in which we business, emphasizing
sustainability
Keyword: governance
STRONG GOVERNANCE
Enhancing our leadership in ESG through an unwavering commitment to strong corporate governance
and ESG performance overseen by the board of directors.
6 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
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OUR 2023
PROGRESS
During the year, we continued to make progress against our IGNITE
strategy. We drove top-line growth and rebuilt margins amid a
challenging operating environment while continuing to invest in the
long-term health of our brands, categories and capabilities. These
investments helped us deliver consumer-inspired innovation, f
Keyword: governance
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We See Growth Fueled
By harnessing technology and embracing sustainability, we can achieve cost savings
that can then be used to fund investments in brand innovation and portfolio evolution.
We achieve this by executing our hallmark cost-savings program successfully and
capitalizing on the superior value of our brands and their role in consumers’ daily lives.
FY23 HIGHLIGHTS
• Achieved four consecutive quarters of record cost • Invested in the business to find efficiencies and meet
savings, above our 175 basis-point IGNITE goal. This, increased consumer demand through our new cat litter
coupled with the implementation of record levels of manufacturing facility in Martinsburg, West Virginia.
cost-justifie
Keyword: governance
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DRIVING OUR DIGITAL TRANSFORMATION
REINVENTING CONNECTIONS WITH CONSUMERS
AND CUSTOMERS
A $500 million investment in our digital transformation is gaining
momentum and creating important business efficiencies and
growth. The intent is to ensure that every technology component
that’s part of this work is enabled by integrated, clean data
that’s used across systems and functions. Concurrently, we’re
CREATING PERSONALIZED
sharpening internal capabilities and processes to best leverage
INTERACTIONS THROUGH
this data for analytics and insights that help us make smarter
TRANSFORMATIVE TECHNOLOGY
decisions faster and delight consumers and customers. Some
CloroxPro, part of our professional
examples of this digi
Keyword: governance
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We See Innovative Experiences
We enhance consumer satisfaction by delivering purpose-driven and personalized
brands, creating more engaging innovation platforms and providing improved
shopping experiences. With an innovation focus that extends beyond our products to
our supply chain, packaging and business models, we’re tapping technology for better
insights and agility and to deliver frictionless brand experiences.
FY23 HIGHLIGHTS
• Introduced innovation across all major brands, • Unveiledfirst-everdirect-to-consumersite
including Clorox, Fresh Step and Glad, that meets at Clorox.com that simplifies shopping for the next
consumers’ needs and supports their well-being. generation of consumers, whil
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FY23 INNOVATION HIGHLIGHTS
Innovation with environmental sustainability attributes
International
• Brita Hub Instant Powerful
Countertop Water Filtration
• Burt’s Bees & Above & Beyond Refillable • Burt’s Bees SPF 30 Sensitive Solutions
Beeswax Lip Balm Calming Day Lotion
• Burt’s Bees Beeswax + Shea Lip Balms • Burt’s Bees Rescue Lip Relief
with paper tube packaging
• Burt’s Bees Baby Bee Refillable Shampoo
• Burt’s Bees Clear & Balanced line and Wash
Post Acne Mark Cream
• Burt’s Bees Shea line
Even Tone Liquid Exfoliant
Shea + Creamy Coconut Healing Hand & Body Lotion
Skin Balancing Gel Cream
Shea + Creamy Coconut Deeply Moisturizing Hydra Balm
Breakout Defense Foaming Wash
Deep Cleansing Acne Scrub
•
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• Fresh Step Crystals Health Monitor Unscented
• Fresh Step Febreze with Gain Moonlight Breeze
• Scoop Away Complete Performance Plus
• Glad ForceFlex MaxStrength
Trash Bags
• Glad ForceFlex with Pine-Sol
Trash Bags
• Natural Vitality CALM
MIND Powders
Magnesium Powder Stick Packs
Magnesium Glycinate Capsules
Magnesium Citrate Strawberry Gummies
• Hidden Valley Easy Squeeze Bottle • Natural Vitality BRAIN Health & Memory Gummies
Pickle Flavored Ranch
• NeoCell
Buffalo Ranch
Marine Collagen with Beauty Blend Powder
• Hidden Valley Secret Sauce Vegan Beauty Builder
Cajun Super Collagen Powder with Aloe
Super Collagen Peptides Powder Stick Packs
• Hidden Valley Ranch Night!
Premium Seasoning Mix
Black Peppe
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We See Reimagined work
Our culture evolves by galvanizing people through an inclusive workplace, simplifying
operations and leveraging technology for growth. We thoughtfully invested in digital
resources to make work faster and leaner, while placing our people at the center of our
experiences. Strengthened by an unwavering commitment to inclusion, diversity, equity
and allyship, we’re driving agility, efficiency and impact that aligns with financial goals.
FY23 HIGHLIGHTS
• Executed our ongoing listening strategy as part of a continuous
improvement mindset to gauge teammates’ perceptions of Clorox as a place
to work. In fiscal year 2023, our teammate engagement score was again 82%,
in line with the 50th
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SUPPORTING TEAMMATES’ GROWTH AND WELL-BEING
Clorox teammates are the driving force behind our success. They live our purpose
and help advance our IGNITE goals. In turn, we put a considerable focus on
teammates’ well-being and professional growth.
This fiscal year, for instance, we organized a global Career Week — five days packed
with engaging content, panels, mentorship guidance and conversations to guide
people on what it means to have a successful career at Clorox and actions they
can take to achieve that. We made it easier for teammates to explore new job
opportunities by internally posting all roles below director level in an effort to increase transparency and support career
growth at the company.
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DRIVING GREATER INCLUSION
AND IMPACT
Clorox is making strides and marking milestones on our
journey to become a more diverse and inclusive company.
This year we welcomed our new chief diversity and social
impact officer, Shanique Bonelli-Moore, to the Clorox family.
We also evolved our strategy from inclusion and diversity
to IDEA — inclusion, diversity, equity, and allyship. This helps
make sure processes and programs are impartial, fair and
provide equal opportunities to everyone. The addition of
allyship is a call to action for each teammate to take an
active part in driving IDEA and makes our strategy a more
actionable one across the company.
To ensure that each teammate plays an active role in
shapi
Keyword: governance
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We see an Evolving portfolio
We broaden our core business by unlocking organic growth in the U.S. while maximizing
performance internationally with strong brands and operational excellence. As we
continue to pursue consumer-driven opportunities, we’re thoughtfully making investments
to reshape our portfolio with a focus on megatrends, particularly in the areas of enhanced
wellness and sustainability.
FY23 HIGHLIGHTS
• Introduced Burt’s Bees Rescue Lip Relief in a squeezable • Added user-friendly ingredient definitions to
form. As the lip care leader, the brand extended its SmartLabel to help consumers better understand
core equity around hydration to address consumers’ the function of our ingredients. Cl
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SUPPORTING WELLNESS OF TODAY’S
PET FAMILIES
Pets and their people are more connected than ever. Today, 96%* of
pet owners view their pets as family. This trend is especially true among
Millennials and Gen Z consumers, who make up almost half of U.S. pet
parents. This evolving relationship influences purchase decisions, with
80%** of pet owners paying closer attention to wellness while still prioritizing
convenience, efficacy and cost.
Our Fresh Step brand, which is committed to helping pets and their families
live in harmony, tapped into this trend when it launched Crystals Health
Monitor Litter. This evolution of Fresh Step’s core crystal product helps owners
easily monitor their cat’s health and detect
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We see our Purpose in action
We invest in our people and communities to contribute to a more equitable and
sustainable world. Being a good global corporate citizen has been part of our DNA
for more than 110 years and is just another way we fulfill our purpose to champion
people to be well and thrive every single day.
ADVANCING ENVIRONMENTAL JUSTICE
Rooted in our ambitions to create a cleaner world, support healthy
lives and help communities thrive, The Clorox Company Foundation
expanded its Healthy Parks Project, further advancing its commitment
to environmental justice by improving access to green spaces within
underserved communities.
Through grants totaling $200,000 and volunteer hours from hundreds o
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GROWING ECONOMIES AND ECOSYSTEMS THROUGH
RESPONSIBLE SOURCING
We’re working to reduce the impacts of raw materials used across our brands. This includes helping
to combat deforestation by increasing the percentage of recycled or responsibly sourced certified
virgin fiber used in purchased packaging. Our efforts have resulted in an increase from 93% in CY21
to 99% in CY22, just short of our 100% goal.
Our commitment to greater sustainability extends to enhancing biodiversity, fueling economic
growth and championing human and labor rights in our supply chains, in particular those with
vulnerable populations. Through Clorox’s continued support of Earthworm Foundation’s Aceh
Landscape Project, the organizati
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COMMUNITY IMPACT HIGHLIGHTS*
$0.5M 127,000
u.s. cause employee
marketing volunteer hours
or $4M in CY22D15
$4.4M
53%
foundation &
corporate participation in
community employee giving
cash grants campaign
$44.5M 4,516
u.s. corporate nonprofit
product beneficiaries
donationsD13
82%
$201.3M
employee
spending engagement
with diverse
(in line with the
suppliersD14 50th percentile
of fortune 500
companies)D12
*As of June 30, 2023, unless stated otherwise
20 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
DIVE
Keyword: governance
Leadership & Governance
25% 50%
people of color women board
board members members
(vs. 22% fortune 500 (vs. 30% fortune 500
average in 2022) average in 2022)
14% 50%
people of color women clorox
clorox executive executive committee
committee members members
Across the company
People of color — U.S. Women — Global
42% 36%
total employees total employees
(2,623) (3,088)
17% 50%
senior executives (4) senior executives (12)
34% 49%
managers (569) managers (1,142)
50% 58%
other nonproduction other nonproduction
employees (556) employees (1,109)
44% 19%
production production
employees (1,493) employees (824)
* For a comprehensive update on our IGNITE ESG goals and metrics, see pages 42-43, and visit our ESG Data Hub at https://clorox.metrio.net to view progress over ti
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SALES BY SEGMENT
35% 28% 16%
Health and Household International
Wellness Bags and Wraps Clorox
Cleaning Glad Ayudin
Clorox Clorinda
Cat Litter
Clorox 2 Poett
Fresh Step
Scentiva Pine-Sol
Scoop Away
Pine-Sol Glad
Ever Clean
Liquid-Plumr Brita
Tilex Grilling RenewLife
Formula 409 Kingsford Ever Clean
Burt’s Bees
Professional Products
Clorox Healthcare
18%
L ifestyle
3%
Corporate
CloroxPro
Food Products and Other
Hidden Valley Vitamins,
Minerals and
Natural Personal Care
Supplements
Burt’s Bees
Rainbow Light
Water Filtration Natural Vitality
Brita NeoCell
RenewLife
22 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
Message
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FINANCIAL FOOTNOTES
See footnotes below for descriptions of these not iii Management believes the presentation of EBIT, EBIT margin, adjusted EBIT
and adjusted EBIT margin provides useful additional information to investors
generally accepted accounting principles, or non-GAAP about trends in the company’s operations and is useful for comparability of
performance over time. These non-GAAP financial measures should not be
measures, how management uses them, the reasons
considered in isolation or as a substitute for the comparable GAAP measures.
management believes they are useful to investors and In addition, these non-GAAP financial measures may not be the same as
similar measures provided by other compa
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2ReconciliationofEconomicProfit(unaudited)i
iii The tax rate applied is the effective tax rate before the identified U.S. GAAP items
Dollars in millions FY23 FY22 FY21 was 23.6%, 22.5% and 20.7% in fiscal years 2023, 2022, and 2021, respectively.
The difference between the fiscal year 2023 effective tax rate on earnings of
32.4% is due to the tax rate impact of the FY23 VMS impairment and incremental
Earnings before income taxes $ 238 $ 607 $ 900 operating expenses recorded related to the implementation of the Company’s
digital capabilities and productivity enhancements investment of (8.9)% and
Add back: 0.1%, respectively. The difference between the fiscal year 2022 effective tax rate
on earnings of
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3Reconciliation of Adjusted EPSv
Dollars in millions except per share data FY23 FY22 % Change
As reported (GAAP) $ 1.20 $ 3.73 (68)%
VMS impairmenti 2.91 — —
Streamlined operating modelii 0.37 — —
Digital capabilities and productivity
enhancements investmentiii 0.61 0.37 —
As adjusted (Non-GAAP)iv, v $ 5.09 $ 4.10 24%
i D uring the year ended June 30, 2023, noncash impairment charge of
goodwill and trademarks was recorded of $445 ($362 after tax) related to
the VMS business.
ii During the year ended June 30, 2023, the company incurred approximately $60
($45 after tax) of restructuring and related costs, net for implementation of the
streamlined operating model.
iii D uring the year ended June 30, 2023 an
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OUR COMMITMENT TO STRONG
CORPORATE GOVERNANCE
Our board of directors continued to apply their strong, • Consideration of stakeholder feedback, with
diverse and relevant skills to provide meaningful oversight subsequent enhancements to our governance
of the company and its execution of the IGNITE strategy, processes, including public disclosure in alignment
demonstrating active engagement with the issues most with stakeholder-preferred reporting frameworks,
important to investors. incorporation of a third-party facilitator into our
board evaluation process (see pages 44-54), and
Our governance practices extend to transparency in our
creation and expansion of our ESG Data Hub, the
disclosures, robust board
Keyword: governance
following are some examples of strong governance matters, including through engagements with employees
practices at Clorox: via site visits and town halls; oversight of engagement
survey results and follow-up actions; and regular updates
• Regular board refreshment, with average tenure
on ESG activities in town halls, community events and
of approximately five years. We seek diverse skills,
companywide communications.
backgrounds and experiences that support the
company’s strategy, which also results in a diverse • Annual mandatory training for Clorox teammates
board mix of both longer-tenured and newer directors. on our Clorox Code of Conduct, which outlines our
expectations in areas including human rights and
• Strong shareholder-friendly practices, including the
health and safety.
rig
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OUR ESG GOVERNANCE & STRUCTURE
This included creating a new internal ESG management Additional highlights include:
structure and hiring our first full-time vice president and
• Published our Climate Action Plan this fiscal year,
head of sustainability to lead ESG work. The governance
disclosing progress against our science-based targets
structure starts at the top with oversight from our board
for scope 3 emissions (categories 1 and 11) in our annual
and senior management team. Our ESG Executive
report, and disclosing all scope 3 categories relevant to
Committee determines strategic considerations to ensure
our business, on our ESG Data Hub.
we continue our ESG leadership, while the ESG Steering
Team, le
Keyword: governance
Our ESG governance structure and related processes
Even as the external environment is constantly evolving,
include a system of mechanisms to further integrate
we’re committed to continuously evaluating our approach
our IGNITE ESG goals into our business units, allocate
to governance as we drive toward our IGNITE goals and
resources and assign decision-making authority and
strive to achieve our integrated ESG ambitions.
accountability. This enables us to better set ESG targets
and measure performance. The structure also helps
identify and mitigate risks associated with ESG issues
such as resource dependency, resource scarcity and
physical business disruption.
27 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose
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CLOROX BOARD OF DIRECTORS*
Matthew J. Shattock Amy Banse Julia Denman Spencer C. Fleischer
Independent Chair, Venture Partner, Corporate Vice President Chairman,
former Non-Executive Mastry Inc. and Head of Internal Audit, FFL Partners LP
Chairman, Enterprise Risk and
Beam Suntory Inc. Compliance,
Microsoft Corporation
Esther Lee A.D. David Mackay Paul Parker Stephanie Plaines
Former Executive Vice Former President and Senior Vice President, Chief Financial Officer,
President and Global Chief Chief Executive Officer, Strategy and Corporate JCPenney
Marketing Officer, The Kellogg Company Development,
MetLife Inc. Thermo Fisher Scientific Inc.
Linda Rendle Kathryn Tesija Russell J. Weiner Christopher J. Wi
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CLOROX EXECUTIVE COMMITTEE
Linda Rendle Stacey Grier Angela Hilt Kevin Jacobsen
Chief Executive Officer Executive Vice President Executive Vice President Executive Vice President
and Chief Growth and Chief Legal Officer and Chief Financial Officer
and Strategy Officer
Kirsten Marriner Eric Reynolds Chau Banks Shanique Bonelli-Moore
Executive Vice President Executive Vice President Senior Vice President Vice President and Chief
and Chief People and and Chief Operating Officer and Chief Information Diversity and Social
Corporate Affairs Officer and Data Officer Impact Officer
Rebecca Dunphey* Matt Gregory Chris Hyder Rick McDonald
Group President – Senior Vice President and Group President – Senior Vice Pr
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CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
YEARS ENDED JUNE 30
2023 2022 2021
DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA
Net sales $ 7,389 $ 7,107 $ 7,341
Cost of products sold 4,481 4,562 4,142
Gross profit 2,908 2,545 3,199
Selling and administrative expenses 1,183 954 1,004
Advertising costs 734 709 790
Research and development costs 138 132 149
Goodwill, trademark, and other asset impairments 445 — 329
Interest expense 90 106 99
Other (income) expense, net 80 37 (72)
Earnings before income taxes 238 607 900
Income taxes 77 136 181
Net earnings 161 471 719
Less: Net earnings attributable to noncontrolling interests 12 9 9
Net earnings attributable to Clorox $ 149 $ 462 $ 710
Net earnings per share a
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED JUNE 30
2023 2022 2021
DOLLARS IN MILLIONS
Net earnings $ 161 $ 471 $ 719
Other comprehensive (loss) income:
Foreign currency adjustments, net of tax 3 (45) 47
Net unrealized gains (losses) on derivatives, net of tax (22) 100 39
Pension and postretirement benefit adjustments, net of tax 5 12 8
Total other comprehensive (loss) income, net of tax (14) 67 94
Comprehensive income 147 538 813
Less: Total comprehensive income attributable to noncontrolling interests 12 9 9
Total comprehensive income attributable to Clorox $ 135 $ 529 $ 804
31 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our
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CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30
2023 2022
DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA
ASSETS
Current assets
Cash and cash equivalents $ 367 $ 183
Receivables, net 688 681
Inventories, net 696 755
Prepaid expenses and other current assets 77 106
Total current assets 1,828 1,725
Property, plant, and equipment, net 1,345 1,334
Operating lease right-of-use assets 346 342
Goodwill 1,252 1,558
Trademarks, net 543 687
Other intangible assets, net 169 197
Other assets 462 315
Total assets $ 5,945 $ 6,158
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Notes and loans payable $ 50 $ 237
Current operating lease liabilities 87 78
Accounts payable and accrued liabilities 1,659 1,469
Incom