The significant reduction in cash and cash equivalents during Q3 2024 was driven by several key factors. **Operating activities** saw a dramatic decline, with net cash provided dropping to **$355 million** compared to **$728 million** in the same period of the prior year. This decrease was influenced by lower net earnings due to a cyberattack and the divestiture of the Argentina business, along with changes in working capital such as a **$120 million** decrease in accounts payable and a **$144 million** decrease in income taxes payable. In **investing activities**, cash was used significantly due to **$131 million** in capital expenditures, partially offset by **$17 million** from the Argentina divestiture. Furthermore, **financing activities** contributed to the drop, with **$446 million** paid out in cash dividends (offset by **$61 million** from net proceeds of notes and loans payable) and an additional **$26 million** reduction due to unfavorable exchange rate changes.  **[20240430SF00715:0]** **[0000021076-24-000016_clx-20240331.htm:3]** 

Why did cash and cash equivalents drop so drastically by Q3 2024?

The decline in total assets by Q1 2025 was driven by several factors. **First**, there was a **reduction in cash and cash equivalents**, which contributed to a decrease in liquidity. **Second**, the company experienced a **decrease in inventories**, reflecting lower stock levels. **Third**, there was a **decline in intangible assets**, notably due to the divestiture of the Better Health VMS business that included trademarks, licenses, and related assets. These factors together resulted in a net decline of **$254 million** in total assets.  **[0000021076-24-000038_ex991-pressreleasedatedoct.htm:16]** **[20241030SF43759:9]** **[0000021076-24-000038_ex991-pressreleasedatedoct.htm:2]** 

What factors contributed to the decline in total assets by Q1 2025?

The dramatic drop in notes and loans payable in Q4 2024 was primarily caused by a **reduction in short-term borrowings**—including U.S. commercial paper and borrowings under the revolving credit agreements—and Clorox's financing activities, which included **net repayments of $45 million** for notes and loans payable during FY 2024.  **[0000021076-24-000027_ex991-pressreleasedatedaug.htm:20]** **[0001552781-24-000563_e24323_clx-def14a.htm:124]** **[0000021076-24-000030_clx-20240630_d2.htm:12]** 

What caused the dramatic drop in notes and loans payable in Q4 2024?

The significant increase in **notes and loans payable** in Q2 2025 was driven primarily by the company's financing activities, which resulted in a **net increase of $184 million** during the six months ended December 31, 2024.  **[0000021076-25-000010_ex991-pressreleasedatedfeb.htm:19]** **[0000021076-25-000013_clx-20241231.htm:2]** 

What drove the significant increase in notes and loans payable in Q2 2025?

25c287724180c57de0fbe06b7e67ce5fc820e3f5ed40647276b58a0c0aac1e35

The significant drop in operating cash flow was primarily driven by **higher tax payments**—resulting from the settlement of deferred income taxes following IRS relief related to California winter storms—which increased the fiscal burden in FY 2024. Additionally, there was an **increase in working capital** due to a decrease in accounts payable and accrued liabilities, and **employee incentive compensation payments** were higher compared to FY 2023. These factors, although partially offset by higher cash earnings, collectively led to the marked decline in operating cash flow in FY 2024.  **[0000021076-24-000030_clx-20240630_d2.htm:10]** **[0001552781-24-000563_e24323_clx-def14a.htm:87]** 

What contributed to the marked drop in Operating Cash Flow in FY 2024?

Operating Cash Flow nearly halved in Q3 2024 because the company faced multiple challenges that collectively reduced cash flow. A significant cyberattack led to temporary distribution losses and operational disruptions, adversely affecting sales and efficiency.  **[20240430SF00715:0]** **[0000021076-24-000014_ex991-pressreleasedatedapr.htm:0]**  Additionally, a loss on the divestiture of its Argentina business resulted in a **$240 million pretax charge** that further drained cash flow.  **[20240430SF00715:2]** **[20240430SF00715:10]**  The company also incurred higher costs for IT recovery and forensic services, along with a **$171 million noncash pension settlement charge** that compounded the negative impact on operating cash flow.  **[0000021076-24-000014_ex991-pressreleasedatedapr.htm:20]** **[20240430SF00715:10]** 

Why did Operating Cash Flow nearly halve in Q3 2024 compared to the previous year?

The sharp rebound in Operating Cash Flow in Q1 2025 was driven by several key factors. **Higher net earnings** increased significantly to **$103 million** from **$25 million** as a result of strong operational performance and recovery from the August 2023 cyberattack.  **[20241030SF43759:0]** **[0000021076-24-000040_clx-20240930.htm:2]**  Additionally, a **$112 million adjustment** related to the divestiture of the Better Health VMS business played a major role. Changes in working capital were also important—for example, a **$84 million improvement in receivables**, a less pronounced reduction in inventories, and consistent timing differences in accounts payable and accrued liabilities. Finally, a favorable shift in income taxes payable (from a negative **$8 million** to a positive **$42 million** change) further contributed to the robust operating cash flow.  **[20241030SF43759:0]** **[0000021076-24-000040_clx-20240930.htm:2]** 

What factors drove the sharp rebound in Operating Cash Flow in Q1 2025?

ebf9fb30af45886a33bed02cdae0842b2e8a5703e1929e5e2c26f071c7a0f2fa

Basic EPS was negative in Q3 2024 because several expense factors outweighed earnings. Specifically, a **loss on the Argentina divestiture of $1.85 per share** and additional charges—such as **16 cents per share** related to long-term digital investments, **6 cents per share** from implementing a more streamlined operating model, and **5 cents per share** in incremental cyberattack expenses—collectively resulted in a net negative impact, despite the improvement from last year's heavy noncash impairment charge. This combination of factors led to a loss of **$0.41 per share** for the quarter.  **[0000021076-24-000014_ex991-pressreleasedatedapr.htm:0]** **[20240430SF00715:0]** 

Why was Basic EPS negative in Q3 2024?

Clorox’s Q3 2024 net earnings were driven into a loss mainly by several one-time charges. The company recorded a **pretax charge of $240 million** related to the divestiture of its Argentina business, which involved releasing cumulative currency translation losses.  **[20240430SF00715:0]** **[20240430SF00715:10]**  In addition, it incurred **$8 million in pretax costs** due to a cyberattack and **$10 million in pretax costs** associated with restructuring and a streamlined operating model.  **[20240430SF00715:13]** **[20240430SF00715:10]**  Although there were some mitigating factors—such as improved gross margin and reduced operating expenses—the impact of these charges ultimately drove the net earnings into a loss.  **[20240430SF00715:0]** **[0000021076-24-000014_ex991-pressreleasedatedapr.htm:0]** **[20240430SF00715:15]** 

What factors drove net earnings into a loss in Q3 2024?

In **Q3 2024**, Clorox's earnings before income taxes fell into negative territory primarily due to several significant charges. The most notable was a **$240 million pretax charge** associated with the loss on the divestiture of its Argentina business.  **[20240430SF00715:15]** **[20240430SF00715:2]**  In addition, the company incurred **$8 million in cyberattack-related costs**, **$10 million in restructuring costs**, and **$26 million in expenses for digital investments**, which further weighed on its earnings.  **[0000021076-24-000014_ex992-supplementalinformat.htm:3]** **[20240430SF00715:15]** **[0000021076-24-000014_ex991-pressreleasedatedapr.htm:19]**  These combined factors contributed to an overall loss of **$42 million** in Q3 2024.

Why did earnings before income taxes fall into negative territory in Q3 2024?

The emergence of the **pension settlement charge in FY 2024** was driven by the company's decision to settle plan benefits associated with its domestic qualified pension plan. This was achieved through a combination of an **annuity contract purchase** with a third-party insurance provider and **lump sum payouts** funded using plan assets, which resulted in a one-time noncash charge of **$171 million** (or **$130 million after tax**).  **[0000021076-24-000030_clx-20240630_d2.htm:29]** **[20240801SF74383:10]** **[0000021076-24-000027_ex991-pressreleasedatedaug.htm:10]** 

What led to the emergence of a pension settlement charge in FY 2024?

In **FY 2024**, the significant **loss on divestiture** of **$240 million** was attributed to the **divestiture of the Argentina business**.  **[0000021076-24-000030_clx-20240630_d2.htm:29]** **[20240801SF74383:14]** **[0000021076-24-000027_ex991-pressreleasedatedaug.htm:18]** **[20240801SF74383:13]** 

What contributed to the significant loss on divestiture in FY 2024?

c3a8833ebd4456ce4d1d1441d2f39d73670375b711614a1608bdd50672f9c43c

Net Cash Provided by Operations (USD, millions)

Capital Expenditures (USD, millions)

01fd21b08bd26361b48d5b3579688ce845a35394bf46752139c6de111b6da033

Net sales (USD, millions)

Cost of products sold (USD, millions)

Gross profit (USD, millions)

Selling and administrative expenses (USD, millions)

Advertising costs (USD, millions)

Research and development costs (USD, millions)

Loss on divestiture (USD, millions)

Pension settlement charge (USD, millions)

Interest expense (USD, millions)

Other (income) expense, net (USD, millions)

Earnings before income taxes (USD, millions)

Income tax expense (benefit) (USD, millions)

Net earnings (losses) (USD, millions)

Net earnings attributable to Clorox (USD, millions)

Basic net earnings per share attributable to Clorox (USD)

Diluted net earnings per share attributable to Clorox (USD)

16fa0d2ae772fca2d1335f3eafc74c4acfcfe838572dd44628afd332befdfd81

ee666cfff7ac7f5081a689ee82ef885b1c79ee5a567ca5e7fd81b406f5b84313

c5d3995c55b2279aad521ef072121316d11f239ce2adffee895692e1f2869c39

09d8ef663866a2c7b7fe574f4fd0658e834a4dff38335db10838ca255d28db1b

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

e1420e5812b1d6d074706204043369fea406629bcc824feee69af77f2dcda9a4

25a23c41a89cf9a1a7e8e5e069c1e7315a10d7f2aaf36e40a6d0271d7fcc270a

International

United States

Foreign

Total Revenue

8f0b923ff952445a6a3f579d3ee8e23b83b5cb0b1908b1a75d24cd29a203edea

e2d27ad998e878fd7465c43e82923fc8a163e7773f9c32d3239612ad27a33c9a

CLOROX CO /DE/ (CLX)

Financials