| DEBT
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12/31/2017 | 6/30/2017 | ||||||
Finished goods | $ | 399 | $ | 363 | |||
Raw materials and packaging | 115 | 119 | |||||
Work in process | 6 | 3 | |||||
LIFO allowances | (26 | ) | (26 | ) | |||
Total | $ | 494 | $ | 459 |
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Gains (losses) recognized in Other comprehensive income | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Commodity purchase derivative contracts | $ | 1 | $ | 1 | $ | 3 | $ | 1 | |||||||
Foreign exchange derivative contracts | 1 | 1 | — | 1 | |||||||||||
Interest rate derivative contracts | — | — | 2 | — | |||||||||||
Total | $ | 2 | $ | 2 | $ | 5 | $ | 2 |
Gains (losses) reclassified from Accumulated other comprehensive net (losses) income and recognized in Net earnings | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Commodity purchase derivative contracts | $ | — | $ | — | $ | — | $ | (1 | ) | ||||||
Foreign exchange derivative contracts | — | (2 | ) | (1 | ) | (3 | ) | ||||||||
Interest rate derivative contracts | (2 | ) | (1 | ) | (4 | ) | (3 | ) | |||||||
Total | $ | (2 | ) | $ | (3 | ) | $ | (5 | ) | $ | (7 | ) |
12/31/2017 | 6/30/2017 | ||||||||||||||||||
Balance sheet classification | Fair value hierarchy level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Investments including money market funds | Cash and cash equivalents (a) | 1 | $ | 240 | $ | 240 | $ | 221 | $ | 221 | |||||||||
Time deposits | Cash and cash equivalents (a) | 2 | 149 | 149 | 115 | 115 | |||||||||||||
Commodity purchase swaps contracts | Prepaid expenses and other current assets | 2 | 2 | 2 | 1 | 1 | |||||||||||||
Commodity purchase swaps contracts | Other assets | 2 | 1 | 1 | — | — | |||||||||||||
Trust assets for nonqualified deferred compensation plans | Other assets | 1 | 84 | 84 | 72 | 72 | |||||||||||||
$ | 476 | $ | 476 | $ | 409 | $ | 409 | ||||||||||||
Liabilities | |||||||||||||||||||
Notes and loans payable | Notes and loans payable (b) | 2 | $ | 495 | $ | 495 | $ | 404 | $ | 404 | |||||||||
Commodity purchase swaps contracts | Accounts payable and accrued liabilities | 2 | — | — | 1 | 1 | |||||||||||||
Foreign exchange forward contracts | Accounts payable and accrued liabilities | 2 | 1 | 1 | 1 | 1 | |||||||||||||
Current maturities of long-term debt and Long-term debt | Current maturities of long- term debt and Long-term debt (c) | 2 | 1,788 | 1,843 | 1,791 | 1,855 | |||||||||||||
$ | 2,284 | $ | 2,339 | $ | 2,197 | $ | 2,261 |
(a) | Cash and cash equivalents are composed of time deposits and other interest bearing investments including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value. |
(b) | Notes and loans payable is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value. |
(c) | Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of Long-term debt, including current maturities, was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2. |
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12/31/2017 | 6/30/2017 | ||||||
Venture agreement terminal obligation, net | $ | 327 | $ | 317 | |||
Employee benefit obligations | 307 | 298 | |||||
Taxes | 47 | 42 | |||||
Other | 110 | 113 | |||||
Total | $ | 791 | $ | 770 |
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Three Months Ended | Six Months Ended | ||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||
Basic | 129,359 | 128,497 | 129,189 | 128,973 | |||||
Dilutive effect of stock options and other | 2,296 | 2,278 | 2,370 | 2,433 | |||||
Diluted | 131,655 | 130,775 | 131,559 | 131,406 | |||||
Antidilutive stock options and other | 1,223 | 1,335 | 1,223 | 39 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||||||||||||||
Amount | Shares (in 000's) | Amount | Shares (in 000's) | Amount | Shares (in 000's) | Amount | Shares (in 000's) | ||||||||||||||||||||
Evergreen Program | $ | 3 | 26 | $ | 70 | 572 | $ | 63 | 476 | $ | 183 | 1,455 |
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Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Earnings from continuing operations | $ | 233 | $ | 150 | $ | 425 | $ | 329 | |||||||
Earnings (losses) from discontinued operations, net of tax | — | (1 | ) | — | (1 | ) | |||||||||
Net earnings | 233 | 149 | 425 | 328 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | (4 | ) | (17 | ) | 10 | (18 | ) | ||||||||
Net unrealized gains (losses) on derivatives | 3 | 4 | 8 | 7 | |||||||||||
Pension and postretirement benefit adjustments | 1 | 1 | 1 | 2 | |||||||||||
Total other comprehensive income (loss), net of tax | — | (12 | ) | 19 | (9 | ) | |||||||||
Comprehensive income | $ | 233 | $ | 137 | $ | 444 | $ | 319 |
Foreign currency translation adjustments | Net unrealized gains (losses) on derivatives | Pension and postretirement benefit adjustments | Accumulated other comprehensive (losses) income | ||||||||||||
Balance as of June 30, 2016 | $ | (353 | ) | $ | (44 | ) | $ | (173 | ) | $ | (570 | ) | |||
Other comprehensive income (loss) before reclassifications | (20 | ) | 2 | — | (18 | ) | |||||||||
Amounts reclassified from Accumulated other comprehensive net losses | — | 7 | 4 | 11 | |||||||||||
Income tax benefit (expense) | 2 | (2 | ) | (2 | ) | (2 | ) | ||||||||
Net current period other comprehensive income (loss) | (18 | ) | 7 | 2 | (9 | ) | |||||||||
Balance as of December 31, 2016 | $ | (371 | ) | $ | (37 | ) | $ | (171 | ) | $ | (579 | ) | |||
Balance as of June 30, 2017 | $ | (356 | ) | $ | (37 | ) | $ | (150 | ) | $ | (543 | ) | |||
Other comprehensive income (loss) before reclassifications | 13 | 5 | — | 18 | |||||||||||
Amounts reclassified from Accumulated other comprehensive net losses | — | 5 | 3 | 8 | |||||||||||
Income tax benefit (expense) | (3 | ) | (2 | ) | (2 | ) | (7 | ) | |||||||
Net current period other comprehensive income (loss) | 10 | 8 | 1 | 19 | |||||||||||
Balance as of December 31, 2017 | $ | (346 | ) | $ | (29 | ) | $ | (149 | ) | $ | (524 | ) |
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Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | |||||||
Interest cost | 5 | 6 | 11 | 11 | |||||||||||
Expected return on plan assets (1) | (4 | ) | (5 | ) | (9 | ) | (10 | ) | |||||||
Amortization of unrecognized items | 2 | 3 | 5 | 6 | |||||||||||
Total | $ | 3 | $ | 4 | $ | 7 | $ | 7 |
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Net sales | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Cleaning | $ | 472 | $ | 469 | $ | 1,031 | $ | 1,003 | |||||||
Household | 410 | 421 | 851 | 843 | |||||||||||
Lifestyle | 268 | 260 | 514 | 496 | |||||||||||
International | 266 | 256 | 520 | 507 | |||||||||||
Corporate | — | — | — | — | |||||||||||
Total | $ | 1,416 | $ | 1,406 | $ | 2,916 | $ | 2,849 | |||||||
Earnings (losses) from continuing operations before income taxes | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Cleaning | $ | 121 | $ | 104 | $ | 293 | $ | 268 | |||||||
Household | 54 | 71 | 127 | 140 | |||||||||||
Lifestyle | 69 | 77 | 133 | 139 | |||||||||||
International | 23 | 28 | 46 | 55 | |||||||||||
Corporate | (40 | ) | (53 | ) | (93 | ) | (111 | ) | |||||||
Total | $ | 227 | $ | 227 | $ | 506 | $ | 491 |
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12/31/2017 | 6/30/2017 | ||||||
Finished goods | $ | 399 | $ | 363 | |||
Raw materials and packaging | 115 | 119 | |||||
Work in process | 6 | 3 | |||||
LIFO allowances | (26 | ) | (26 | ) | |||
Total | $ | 494 | $ | 459 |
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Gains (losses) recognized in Other comprehensive income | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Commodity purchase derivative contracts | $ | 1 | $ | 1 | $ | 3 | $ | 1 | |||||||
Foreign exchange derivative contracts | 1 | 1 | — | 1 | |||||||||||
Interest rate derivative contracts | — | — | 2 | — | |||||||||||
Total | $ | 2 | $ | 2 | $ | 5 | $ | 2 |
Gains (losses) reclassified from Accumulated other comprehensive net (losses) income and recognized in Net earnings | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Commodity purchase derivative contracts | $ | — | $ | — | $ | — | $ | (1 | ) | ||||||
Foreign exchange derivative contracts | — | (2 | ) | (1 | ) | (3 | ) | ||||||||
Interest rate derivative contracts | (2 | ) | (1 | ) | (4 | ) | (3 | ) | |||||||
Total | $ | (2 | ) | $ | (3 | ) | $ | (5 | ) | $ | (7 | ) |
12/31/2017 | 6/30/2017 | ||||||||||||||||||
Balance sheet classification | Fair value hierarchy level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Investments including money market funds | Cash and cash equivalents (a) | 1 | $ | 240 | $ | 240 | $ | 221 | $ | 221 | |||||||||
Time deposits | Cash and cash equivalents (a) | 2 | 149 | 149 | 115 | 115 | |||||||||||||
Commodity purchase swaps contracts | Prepaid expenses and other current assets | 2 | 2 | 2 | 1 | 1 | |||||||||||||
Commodity purchase swaps contracts | Other assets | 2 | 1 | 1 | — | — | |||||||||||||
Trust assets for nonqualified deferred compensation plans | Other assets | 1 | 84 | 84 | 72 | 72 | |||||||||||||
$ | 476 | $ | 476 | $ | 409 | $ | 409 | ||||||||||||
Liabilities | |||||||||||||||||||
Notes and loans payable | Notes and loans payable (b) | 2 | $ | 495 | $ | 495 | $ | 404 | $ | 404 | |||||||||
Commodity purchase swaps contracts | Accounts payable and accrued liabilities | 2 | — | — | 1 | 1 | |||||||||||||
Foreign exchange forward contracts | Accounts payable and accrued liabilities | 2 | 1 | 1 | 1 | 1 | |||||||||||||
Current maturities of long-term debt and Long-term debt | Current maturities of long- term debt and Long-term debt (c) | 2 | 1,788 | 1,843 | 1,791 | 1,855 | |||||||||||||
$ | 2,284 | $ | 2,339 | $ | 2,197 | $ | 2,261 |
(a) | Cash and cash equivalents are composed of time deposits and other interest bearing investments including money market funds with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value. |
(b) | Notes and loans payable is composed of U.S. commercial paper and/or other similar short-term debt issued by non-U.S. subsidiaries, all of which are recorded at cost, which approximates fair value. |
(c) | Current maturities of long-term debt and Long-term debt are recorded at cost. The fair value of Long-term debt, including current maturities, was determined using secondary market prices quoted by corporate bond dealers, and is classified as Level 2. |
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12/31/2017 | 6/30/2017 | ||||||
Venture agreement terminal obligation, net | $ | 327 | $ | 317 | |||
Employee benefit obligations | 307 | 298 | |||||
Taxes | 47 | 42 | |||||
Other | 110 | 113 | |||||
Total | $ | 791 | $ | 770 |
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Three Months Ended | Six Months Ended | ||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||
Basic | 129,359 | 128,497 | 129,189 | 128,973 | |||||
Dilutive effect of stock options and other | 2,296 | 2,278 | 2,370 | 2,433 | |||||
Diluted | 131,655 | 130,775 | 131,559 | 131,406 | |||||
Antidilutive stock options and other | 1,223 | 1,335 | 1,223 | 39 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||||||||||||||
Amount | Shares (in 000's) | Amount | Shares (in 000's) | Amount | Shares (in 000's) | Amount | Shares (in 000's) | ||||||||||||||||||||
Evergreen Program | $ | 3 | 26 | $ | 70 | 572 | $ | 63 | 476 | $ | 183 | 1,455 |
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Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Earnings from continuing operations | $ | 233 | $ | 150 | $ | 425 | $ | 329 | |||||||
Earnings (losses) from discontinued operations, net of tax | — | (1 | ) | — | (1 | ) | |||||||||
Net earnings | 233 | 149 | 425 | 328 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | (4 | ) | (17 | ) | 10 | (18 | ) | ||||||||
Net unrealized gains (losses) on derivatives | 3 | 4 | 8 | 7 | |||||||||||
Pension and postretirement benefit adjustments | 1 | 1 | 1 | 2 | |||||||||||
Total other comprehensive income (loss), net of tax | — | (12 | ) | 19 | (9 | ) | |||||||||
Comprehensive income | $ | 233 | $ | 137 | $ | 444 | $ | 319 |
Foreign currency translation adjustments | Net unrealized gains (losses) on derivatives | Pension and postretirement benefit adjustments | Accumulated other comprehensive (losses) income | ||||||||||||
Balance as of June 30, 2016 | $ | (353 | ) | $ | (44 | ) | $ | (173 | ) | $ | (570 | ) | |||
Other comprehensive income (loss) before reclassifications | (20 | ) | 2 | — | (18 | ) | |||||||||
Amounts reclassified from Accumulated other comprehensive net losses | — | 7 | 4 | 11 | |||||||||||
Income tax benefit (expense) | 2 | (2 | ) | (2 | ) | (2 | ) | ||||||||
Net current period other comprehensive income (loss) | (18 | ) | 7 | 2 | (9 | ) | |||||||||
Balance as of December 31, 2016 | $ | (371 | ) | $ | (37 | ) | $ | (171 | ) | $ | (579 | ) | |||
Balance as of June 30, 2017 | $ | (356 | ) | $ | (37 | ) | $ | (150 | ) | $ | (543 | ) | |||
Other comprehensive income (loss) before reclassifications | 13 | 5 | — | 18 | |||||||||||
Amounts reclassified from Accumulated other comprehensive net losses | — | 5 | 3 | 8 | |||||||||||
Income tax benefit (expense) | (3 | ) | (2 | ) | (2 | ) | (7 | ) | |||||||
Net current period other comprehensive income (loss) | 10 | 8 | 1 | 19 | |||||||||||
Balance as of December 31, 2017 | $ | (346 | ) | $ | (29 | ) | $ | (149 | ) | $ | (524 | ) |
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Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | |||||||
Interest cost | 5 | 6 | 11 | 11 | |||||||||||
Expected return on plan assets (1) | (4 | ) | (5 | ) | (9 | ) | (10 | ) | |||||||
Amortization of unrecognized items | 2 | 3 | 5 | 6 | |||||||||||
Total | $ | 3 | $ | 4 | $ | 7 | $ | 7 |
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Net sales | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Cleaning | $ | 472 | $ | 469 | $ | 1,031 | $ | 1,003 | |||||||
Household | 410 | 421 | 851 | 843 | |||||||||||
Lifestyle | 268 | 260 | 514 | 496 | |||||||||||
International | 266 | 256 | 520 | 507 | |||||||||||
Corporate | — | — | — | — | |||||||||||
Total | $ | 1,416 | $ | 1,406 | $ | 2,916 | $ | 2,849 | |||||||
Earnings (losses) from continuing operations before income taxes | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
12/31/2017 | 12/31/2016 | 12/31/2017 | 12/31/2016 | ||||||||||||
Cleaning | $ | 121 | $ | 104 | $ | 293 | $ | 268 | |||||||
Household | 54 | 71 | 127 | 140 | |||||||||||
Lifestyle | 69 | 77 | 133 | 139 | |||||||||||
International | 23 | 28 | 46 | 55 | |||||||||||
Corporate | (40 | ) | (53 | ) | (93 | ) | (111 | ) | |||||||
Total | $ | 227 | $ | 227 | $ | 506 | $ | 491 |
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