OAKLAND, Calif., Feb. 2, 2005 - The Clorox Company (NYSE: CLX) (PCX: CLX) today announced it has applied discontinued operations accounting treatment to its fiscal year 2004 and fiscal year-to-date 2005 results to reflect the impact of its share exchange with Henkel KgaA. As previously communicated, the share exchange and related financing have been completed.
The Financial Accounting Standards Board (FASB) recently ratified the consensus of its Emerging Issues Task Force in EITF Issue No. 03-13, which provided additional guidance for determining when components of a business can be treated as discontinued operations. After reviewing this pronouncement, Clorox determined it should record as discontinued operations the operating results and gain associated with the businesses it transferred to Henkel, as well as income generated by its interim service agreements with Henkel. Because the company's investment in the Henkel Iberica, S.A., joint venture cannot be treated as discontinued operations, the earnings, royalties and gain from the exchange of the joint venture investment are recorded in continuing operations as other income. Additionally, the full tax effect of the transaction will be reflected in the company's second-quarter results.
To reflect these changes, Clorox has reclassified the operating results of the transferred businesses as discontinued operations for each quarter of fiscal year 2004, the full fiscal year 2004 and the first quarter of fiscal year 2005. This data is available within the Investors section of the company's Web site at www.TheCloroxCompany.com > Investors > Financial Information > Financial Results.
Second-Quarter Conference Call and Webcast
On Monday, Feb. 7, 2005, Clorox will host a live audio webcast of a discussion with the investment community regarding the company's second-quarter results, which will be released earlier that day. The webcast will begin at 10:30 a.m. Pacific time (1:30 p.m. Eastern time), and can be accessed at www.TheCloroxCompany.com/investors/index.html. A replay of the webcast will be available for one week on the company's Web site.
The Clorox Company
The Clorox Company is a leading manufacturer and marketer of consumer products with fiscal year 2004 revenues of $4.3 billion. Clorox markets some of consumers' most trusted and recognized brand names, including its namesake bleach and cleaning products, Armor All® and STP® auto care products, Fresh Step® and Scoop Away® cat litters, Kingsford® charcoal briquets, Hidden Valley® and K C Masterpiece® dressings and sauces, Brita® water-filtration systems, and Glad® bags, wraps and containers. With 8,600 employees worldwide, the company manufactures products in 25 countries and markets them in more than 100 countries. Clorox is committed to making a positive difference in the communities where its employees work and live. Founded in 1980, The Clorox Company Foundation has awarded cash grants totaling more than $58.3 million to nonprofit organizations, schools and colleges; and in fiscal 2004 alone made product donations valued at $5 million. For more information about Clorox, visit www.TheCloroxCompany.com.
Forward-Looking Statements
Except for historical information, matters discussed above, including statements about future volume, sales and earnings growth, profitability, costs, cost savings or expectations, are forward-looking statements based on management's estimates, assumptions and projections. Important factors that could cause results to differ materially from management's expectations are described in "Forward-Looking Statements and Risk Factors" and "Management's Discussion & Analysis" in the company's SEC Form 10-K for the year ended June 30, 2004, as updated from time to time in the company's SEC filings. Those factors include, but are not limited to, general economic and marketplace conditions and events; competitors' actions; the company's costs, including changes in the company's exposure to commodity cost increases; the effects on cash flow of tax payments, debt payments and share repurchases, including interest costs and repayment of debt incurred to finance repurchases and the Henkel exchange transaction; the ability to manage and realize the benefits of joint ventures and other cooperative relationships; risks inherent in litigation and international operations; the success of new products; the integration of acquisitions; and environmental, regulatory and intellectual property matters.
The company's forward-looking statements are and will be based on management's then current views and assumptions regarding future events and speak only as of their dates. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the Securities laws.
Discontinued Operations Accounting Treatment Reflecting Impact of Henkel Transaction
Fiscal 2004, First Quarter (PDF)
Fiscal 2004, Second Quarter (PDF)
Fiscal 2004, Third Quarter (PDF)
Fiscal 2004, Fourth Quarter and Full Year (PDF)
Fiscal 2005, First Quarter (PDF)
Summary: Q1 Fiscal 2004 Through Q1 Fiscal 2005 (PDF)
Q1 Fiscal 2004 Through Q1 Fiscal 2005 Volume Growth Statement (PDF)