| DEBT
|
|
|
|
|
|
|
|
Estimated Useful Lives | |
Buildings and leasehold improvements | 7 - 40 years |
Land improvements | 10 - 30 years |
Machinery and equipment | 3 - 15 years |
Computer equipment | 3 - 5 years |
Capitalized software costs | 3 - 7 years |
|
2017 | 2016 | 2015 | |||||||||
Operating losses from Clorox Venezuela before income taxes | $ | — | $ | — | $ | (6 | ) | ||||
Exit costs and other related expenses for Clorox Venezuela | (4 | ) | (2 | ) | (78 | ) | |||||
Total earnings (losses) from Clorox Venezuela before income taxes | (4 | ) | (2 | ) | (84 | ) | |||||
Income tax benefit attributable to Clorox Venezuela | 2 | 2 | 29 | ||||||||
Total earnings (losses) from Clorox Venezuela, net of tax | (2 | ) | — | (55 | ) | ||||||
Gains (losses) from discontinued operations other than | |||||||||||
Clorox Venezuela, net of tax | — | — | 29 | ||||||||
Losses from discontinued operations, net of tax | $ | (2 | ) | $ | — | $ | (26 | ) |
2017 | 2016 | 2015 | |||||||||
Operating losses from Clorox Venezuela before income taxes | $ | — | $ | — | $ | (6 | ) | ||||
Net asset charges: | |||||||||||
Inventories | — | — | (11 | ) | |||||||
Property, plant and equipment | — | — | (16 | ) | |||||||
Trademark and other intangible assets | — | — | (6 | ) | |||||||
Other assets | — | — | (2 | ) | |||||||
Other exit and business termination costs: | |||||||||||
Severance | — | — | (3 | ) | |||||||
Recognition of deferred foreign currency translation loss | — | — | (30 | ) | |||||||
Other | (4 | ) | (2 | ) | (10 | ) | |||||
Total losses from Clorox Venezuela before income taxes | (4 | ) | (2 | ) | (84 | ) | |||||
Income tax benefit attributable to Clorox Venezuela | 2 | 2 | 29 | ||||||||
Total losses from Clorox Venezuela, net of tax | (2 | ) | — | (55 | ) | ||||||
Gains from discontinued operations other than Clorox Venezuela, net of tax | — | — | 29 | ||||||||
Losses from discontinued operations, net of tax | $ | (2 | ) | $ | — | $ | (26 | ) |
|
RenewLife | |||
Goodwill | $ | 137 | |
Trademarks | 134 | ||
Customer relationships | 36 | ||
Property, plant and equipment | 3 | ||
Working capital, net | 40 | ||
Deferred income taxes | (60 | ) | |
Purchase Price | $ | 290 |
|
2017 | 2016 | ||||||
Finished goods | $ | 363 | $ | 361 | |||
Raw materials and packaging | 119 | 111 | |||||
Work in process | 3 | 3 | |||||
LIFO allowances | (26 | ) | (32 | ) | |||
Total | $ | 459 | $ | 443 |
|
2017 | 2016 | ||||||
Machinery and equipment | $ | 1,696 | $ | 1,607 | |||
Buildings | 524 | 524 | |||||
Capitalized software costs | 371 | 368 | |||||
Land and improvements | 116 | 118 | |||||
Construction in progress | 130 | 112 | |||||
Computer equipment | 95 | 88 | |||||
Total | 2,932 | 2,817 | |||||
Less: Accumulated depreciation and amortization | (2,001 | ) | (1,911 | ) | |||
Property, plant and equipment, net | $ | 931 | $ | 906 |
|
Goodwill | |||||||||||||||||||
Cleaning | Household | Lifestyle | International | Total | |||||||||||||||
Balance June 30, 2015 | $ | 323 | $ | 85 | $ | 244 | $ | 415 | $ | 1,067 | |||||||||
Acquisition | — | 122 | — | 15 | 137 | ||||||||||||||
Effect of foreign currency translation | — | — | — | (7 | ) | (7 | ) | ||||||||||||
Balance June 30, 2016 | 323 | 207 | 244 | 423 | 1,197 | ||||||||||||||
Effect of foreign currency translation | — | — | — | (1 | ) | (1 | ) | ||||||||||||
Balance June 30, 2017 | $ | 323 | $ | 207 | $ | 244 | $ | 422 | $ | 1,196 |
As of June 30, 2017 | As of June 30, 2016 | ||||||||||||||||||||||
Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | ||||||||||||||||||
Trademarks not subject to amortization | $ | 645 | $ | — | $ | 645 | $ | 647 | $ | — | $ | 647 | |||||||||||
Trademarks subject to amortization | 32 | 23 | 9 | 32 | 22 | 10 | |||||||||||||||||
Other intangible assets | 358 | 290 | 68 | 358 | 280 | 78 | |||||||||||||||||
Total | $ | 1,035 | $ | 313 | $ | 722 | $ | 1,037 | $ | 302 | $ | 735 |
|
2017 | 2016 | ||||||
Accounts payable | $ | 501 | $ | 490 | |||
Compensation and employee benefit costs | 162 | 192 | |||||
Trade and sales promotion | 117 | 127 | |||||
Dividends | 116 | 108 | |||||
Other | 109 | 118 | |||||
Total | $ | 1,005 | $ | 1,035 |
|
2017 | 2016 | ||||||
Commercial paper | $ | 403 | $ | 522 | |||
Foreign borrowings | 1 | 1 | |||||
Total | $ | 404 | $ | 523 |
2017 | 2016 | ||||||
Senior unsecured notes and debentures: | |||||||
5.95%, $400 due October 2017 | $ | 400 | $ | 400 | |||
3.80%, $300 due November 2021 | 298 | 297 | |||||
3.05%, $600 due September 2022 | 596 | 596 | |||||
3.50%, $500 due December 2024 | 497 | 496 | |||||
Total | 1,791 | 1,789 | |||||
Less: Current maturities of long-term debt | (400 | ) | — | ||||
Long-term debt (1) | $ | 1,391 | $ | 1,789 |
2017 | 2016 | ||||||
Revolving credit facility | $ | 1,100 | $ | 1,100 | |||
Foreign and other credit lines | 29 | 28 | |||||
Total | $ | 1,129 | $ | 1,128 |
|
2017 | 2016 | ||||||
Venture agreement terminal obligation, net | $ | 317 | $ | 302 | |||
Employee benefit obligations | 298 | 335 | |||||
Taxes | 42 | 40 | |||||
Other | 113 | 107 | |||||
Total | $ | 770 | $ | 784 |
|
Gains (losses) recognized in Other comprehensive income | |||||||||||
2017 | 2016 | 2015 | |||||||||
Commodity purchase derivative contracts | $ | (3 | ) | $ | (4 | ) | $ | (13 | ) | ||
Foreign exchange derivative contracts | (1 | ) | (3 | ) | 7 | ||||||
Interest rate derivative contracts | — | — | (12 | ) | |||||||
Total | $ | (4 | ) | $ | (7 | ) | $ | (18 | ) |
Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings | |||||||||||
2017 | 2016 | 2015 | |||||||||
Commodity purchase derivative contracts | $ | (2 | ) | $ | (13 | ) | $ | (5 | ) | ||
Foreign exchange derivative contracts | (3 | ) | 1 | 3 | |||||||
Interest rate derivative contracts | (6 | ) | (6 | ) | (5 | ) | |||||
Total | $ | (11 | ) | $ | (18 | ) | $ | (7 | ) |
2017 | 2016 | ||||||||||||||||||
Assets | Balance sheet classification | Fair value hierarchy level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||
Investments including money market funds | Cash and cash equivalents (a) | 1 | $ | 221 | $ | 221 | $ | 234 | $ | 234 | |||||||||
Time deposits | Cash and cash equivalents (a) | 2 | 115 | 115 | 79 | 79 | |||||||||||||
Commodity purchase futures contracts | Prepaid expenses and other current assets | 1 | — | — | 1 | 1 | |||||||||||||
Commodity purchase swaps contracts | Prepaid expenses and other current assets | 2 | 1 | 1 | — | — | |||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other current assets | 2 | — | — | 1 | 1 | |||||||||||||
Commodity purchase swaps contracts | Other assets | 2 | — | — | 1 | 1 | |||||||||||||
Trust assets for nonqualified deferred compensation plans | Other assets | 1 | 72 | 72 | 52 | 52 | |||||||||||||
$ | 409 | $ | 409 | $ | 368 | $ | 368 | ||||||||||||
Liabilities | |||||||||||||||||||
Notes and loans payable | Notes and loans payable (b) | 2 | $ | 404 | $ | 404 | $ | 523 | $ | 523 | |||||||||
Commodity purchase swaps contracts | Accounts payable and accrued liabilities | 2 | 1 | 1 | 1 | 1 | |||||||||||||
Foreign exchange forward contracts | Accounts payable and accrued liabilities | 2 | 1 | 1 | 4 | 4 | |||||||||||||
Current maturities of long-term debt and Long-term debt | Current maturities of long- term debt and Long-term debt (c) | 2 | 1,791 | 1,855 | 1,789 | 1,922 | |||||||||||||
$ | 2,197 | $ | 2,261 | $ | 2,317 | $ | 2,450 |
(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 loan payable is composed of U.S. commercial paper and/or other similar short-term debts 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. |
|
|
Year | Operating leases | Capital leases | |||||
2018 | $ | 52 | $ | 2 | |||
2019 | 46 | 1 | |||||
2020 | 41 | — | |||||
2021 | 37 | — | |||||
2022 | 32 | — | |||||
Thereafter | 137 | — | |||||
Total | $ | 345 | $ | 3 |
Year | Purchase Obligations | ||
2018 | $ | 158 | |
2019 | 70 | ||
2020 | 36 | ||
2021 | 20 | ||
2022 | 13 | ||
Thereafter | 21 | ||
Total | $ | 318 |
|
2017 | 2016 | 2015 | ||||||||||||||||||
Amount | Shares (in 000's) | Amount | Shares (in 000's) | Amount | Shares (in 000's) | |||||||||||||||
Evergreen Program | $ | 189 | 1,505 | $ | 254 | 2,151 | $ | 434 | 4,016 |
2017 | 2016 | 2015 | |||||||||
Dividends per share declared | $ | 3.24 | $ | 3.11 | $ | 2.99 | |||||
Dividends per share paid | 3.20 | 3.08 | 2.96 |
Foreign currency translation adjustments | Net unrealized gains (losses) on derivatives | Pension and postretirement benefit adjustments | Accumulated other comprehensive (losses) income | ||||||||||||
Balance June 30, 2014 | $ | (246 | ) | $ | (39 | ) | $ | (132 | ) | $ | (417 | ) | |||
Other comprehensive income (loss) before reclassifications | (92 | ) | (18 | ) | (29 | ) | (139 | ) | |||||||
Amounts reclassified from Accumulated other comprehensive net losses | — | 7 | — | 7 | |||||||||||
Recognition of deferred foreign currency translation loss | 30 | — | — | 30 | |||||||||||
Income tax benefit (expense) | 8 | (3 | ) | 12 | 17 | ||||||||||
Net current period other comprehensive income (loss) | (54 | ) | (14 | ) | (17 | ) | (85 | ) | |||||||
Balance June 30, 2015 | (300 | ) | (53 | ) | (149 | ) | (502 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (43 | ) | (7 | ) | (38 | ) | (88 | ) | |||||||
Amounts reclassified from Accumulated other comprehensive net losses | — | 18 | — | 18 | |||||||||||
Income tax benefit (expense) | (10 | ) | (2 | ) | 14 | 2 | |||||||||
Net current period other comprehensive income (loss) | (53 | ) | 9 | (24 | ) | (68 | ) | ||||||||
Balance June 30, 2016 | (353 | ) | (44 | ) | (173 | ) | (570 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (3 | ) | (4 | ) | 27 | 20 | |||||||||
Amounts reclassified from Accumulated other comprehensive net losses | — | 11 | 9 | 20 | |||||||||||
Income tax benefit (expense) | — | — | (13 | ) | (13 | ) | |||||||||
Net current period other comprehensive income (loss) | (3 | ) | 7 | 23 | 27 | ||||||||||
Balance June 30, 2017 | $ | (356 | ) | $ | (37 | ) | $ | (150 | ) | $ | (543 | ) |
|
2017 | 2016 | 2015 | ||||||
Basic | 128,953 | 129,472 | 130,310 | |||||
Dilutive effect of stock options and other | 2,613 | 2,245 | 2,466 | |||||
Diluted | 131,566 | 131,717 | 132,776 | |||||
Antidilutive stock options and other | 11 | 42 | 23 |
|
2017 | 2016 | 2015 | |||||||||
Cost of products sold | $ | 7 | $ | 6 | $ | 4 | |||||
Selling and administrative expenses | 40 | 35 | 25 | ||||||||
Research and development costs | 4 | 4 | 3 | ||||||||
Total compensation costs | $ | 51 | $ | 45 | $ | 32 | |||||
Related income tax benefit | $ | 19 | $ | 17 | $ | 12 |
2017 | 2016 | 2015 | |||
Expected life | 5.5 years | 5.6 years | 5.6 to 5.8 years | ||
Weighted-average expected life | 5.5 years | 5.6 years | 5.7 years | ||
Expected volatility | 16.2% to 16.9% | 16.4% to 17.3% | 16.3% to 18.6% | ||
Weighted-average volatility | 16.9% | 17.2% | 16.6% | ||
Risk-free interest rate | 1.3% to 2.2% | 1.3% to 1.7% | 1.4% to 2.0% | ||
Weighted-average risk-free interest rate | 1.3% | 1.7% | 1.9% | ||
Dividend yield | 2.4% to 2.8% | 2.5% to 2.8% | 2.8% to 3.4% | ||
Weighted-average dividend yield | 2.6% | 2.8% | 3.3% |
Number of Shares (In thousands) | Weighted- Average Exercise Price per Share | Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
Options outstanding as of June 30, 2016 | 6,827 | $ | 85 | 7 years | $ | 366 | ||||||
Granted | 1,318 | 123 | ||||||||||
Exercised | (1,115 | ) | 75 | |||||||||
Canceled | (123 | ) | 112 | |||||||||
Options outstanding as of June 30, 2017 | 6,907 | $ | 93 | 6 years | $ | 277 | ||||||
Options vested as of June 30, 2017 | 3,835 | $ | 80 | 5 years | $ | 204 |
Number of Shares (In thousands) | Weighted-Average Grant Date Fair Value per Share | |||||
Restricted stock awards as of June 30, 2016 | 13 | $ | 108 | |||
Granted | 10 | 132 | ||||
Vested | (4 | ) | 110 | |||
Forfeited | (1 | ) | 96 | |||
Restricted stock awards as of June 30, 2017 | 18 | $ | 120 |
Number of Shares (In thousands) | Weighted-Average Grant Date Fair Value per Share | |||||
Performance unit awards as of June 30, 2016 | 952 | $ | 90 | |||
Granted | 253 | 123 | ||||
Distributed | (35 | ) | 59 | |||
Forfeited | (308 | ) | 87 | |||
Performance unit awards as of June 30, 2017 | 862 | $ | 102 | |||
Performance units vested and deferred as of June 30, 2017 | — | $ | — |
|
2017 | 2016 | 2015 | |||||||||
Income from equity investees | $ | (19 | ) | $ | (15 | ) | $ | (14 | ) | ||
Gain on sale of assets and investments, net | (11 | ) | (11 | ) | (13 | ) | |||||
Interest income | (4 | ) | (5 | ) | (4 | ) | |||||
Asset impairment charges | 23 | 10 | 3 | ||||||||
Amortization of trademarks and other intangible assets | 10 | 8 | 8 | ||||||||
Foreign exchange transaction losses, net | (1 | ) | 1 | 9 | |||||||
Other | 8 | 5 | (2 | ) | |||||||
Total | $ | 6 | $ | (7 | ) | $ | (13 | ) |
|
2017 | 2016 | 2015 | |||||||||
Current | |||||||||||
Federal | $ | 291 | $ | 254 | $ | 265 | |||||
State | 36 | 31 | 28 | ||||||||
Foreign | 38 | 45 | 38 | ||||||||
Total current | 365 | 330 | 331 | ||||||||
Deferred | |||||||||||
Federal | (29 | ) | 11 | (13 | ) | ||||||
State | (2 | ) | 1 | (1 | ) | ||||||
Foreign | (4 | ) | (7 | ) | (2 | ) | |||||
Total deferred | (35 | ) | 5 | (16 | ) | ||||||
Total | $ | 330 | $ | 335 | $ | 315 |
2017 | 2016 | 2015 | |||||||||
United States | $ | 927 | $ | 900 | $ | 829 | |||||
Foreign | 106 | 83 | 92 | ||||||||
Total | $ | 1,033 | $ | 983 | $ | 921 |
2017 | 2016 | 2015 | ||||||
Statutory federal tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State taxes (net of federal tax benefits) | 2.2 | 2.1 | 2.1 | |||||
Tax differential on foreign earnings | (0.6 | ) | 0.5 | (0.3 | ) | |||
Federal domestic manufacturing deduction | (2.6 | ) | (2.4 | ) | (2.1 | ) | ||
Change in valuation allowance | 0.2 | 0.5 | 0.6 | |||||
Federal excess tax benefits | (2.0 | ) | — | — | ||||
Other differences | (0.3 | ) | (1.6 | ) | (1.1 | ) | ||
Effective tax rate | 31.9 | % | 34.1 | % | 34.2 | % |
2017 | 2016 | ||||||
Deferred tax assets (a) | |||||||
Compensation and benefit programs | $ | 182 | $ | 193 | |||
Basis difference related to Venture Agreement | 30 | 30 | |||||
Accruals and reserves | 41 | 34 | |||||
Inventory costs | 25 | 21 | |||||
Net operating loss and tax credit carryforwards | 52 | 48 | |||||
Other | 54 | 54 | |||||
Subtotal | 384 | 380 | |||||
Valuation allowance | (40 | ) | (37 | ) | |||
Total deferred tax assets | 344 | 343 | |||||
Deferred tax liabilities (a) | |||||||
Fixed and intangible assets | (311 | ) | (325 | ) | |||
Low-income housing partnerships | (25 | ) | (23 | ) | |||
Unremitted foreign earnings | (7 | ) | (16 | ) | |||
Other | (24 | ) | (25 | ) | |||
Total deferred tax liabilities | (367 | ) | (389 | ) | |||
Net deferred tax assets (liabilities) | $ | (23 | ) | $ | (46 | ) |
2017 | 2016 | ||||||
Valuation allowance at beginning of year | $ | (37 | ) | $ | (34 | ) | |
Net decrease/(increase) for other foreign deferred tax assets | — | 3 | |||||
Net decrease/(increase) for foreign net operating loss carryforwards and tax credits | (3 | ) | (6 | ) | |||
Valuation allowance at end of year | $ | (40 | ) | $ | (37 | ) |
2017 | 2016 | 2015 | |||||||||
Unrecognized tax benefits at beginning of year | $ | 37 | $ | 38 | $ | 71 | |||||
Gross increases - tax positions in prior periods | 1 | 3 | 3 | ||||||||
Gross decreases - tax positions in prior periods | (6 | ) | (3 | ) | (8 | ) | |||||
Gross increases - current period tax positions | 9 | 8 | 6 | ||||||||
Gross decreases - current period tax positions | — | — | — | ||||||||
Lapse of applicable statute of limitations | (1 | ) | (4 | ) | (34 | ) | |||||
Settlements | — | (5 | ) | — | |||||||
Unrecognized tax benefits at end of year | $ | 40 | $ | 37 | $ | 38 |
|
Retirement Income | Retirement Health Care | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in benefit obligations: | |||||||||||||||
Benefit obligation as of beginning of year | $ | 673 | $ | 639 | $ | 47 | $ | 45 | |||||||
Service cost | 1 | 1 | — | — | |||||||||||
Interest cost | 22 | 26 | 2 | 2 | |||||||||||
Actuarial loss (gain) | (21 | ) | 51 | (4 | ) | 2 | |||||||||
Plan amendments | — | (1 | ) | — | — | ||||||||||
Translation and other adjustments | — | (1 | ) | — | — | ||||||||||
Benefits paid | (42 | ) | (42 | ) | (3 | ) | (2 | ) | |||||||
Benefit obligation as of end of year | 633 | 673 | 42 | 47 | |||||||||||
Change in plan assets: | |||||||||||||||
Fair value of assets as of beginning of year | $ | 423 | $ | 409 | $ | — | $ | — | |||||||
Actual return on plan assets | 22 | 26 | — | — | |||||||||||
Employer contributions | 31 | 31 | 3 | 2 | |||||||||||
Benefits paid | (42 | ) | (42 | ) | (3 | ) | (2 | ) | |||||||
Translation and other adjustments | — | (1 | ) | — | — | ||||||||||
Fair value of plan assets as of end of year | 434 | 423 | — | — | |||||||||||
Accrued benefit cost, net funded status | $ | (199 | ) | $ | (250 | ) | $ | (42 | ) | $ | (47 | ) |
Amount recognized in the balance sheets consists of: | |||||||||||||||
Pension benefit assets | $ | 2 | $ | 1 | $ | — | $ | — | |||||||
Current accrued benefit liability | (15 | ) | (14 | ) | (3 | ) | (3 | ) | |||||||
Non-current accrued benefit liability | (186 | ) | (237 | ) | (39 | ) | (44 | ) | |||||||
Accrued benefit cost, net | $ | (199 | ) | $ | (250 | ) | $ | (42 | ) | $ | (47 | ) |
ABO Exceeds the Fair Value of Plan Assets | |||||||
2017 | 2016 | ||||||
Projected benefit obligation | $ | 611 | $ | 651 | |||
Accumulated benefit obligation | 610 | 650 | |||||
Fair value of plan assets | 409 | 399 |
Retirement Income | Retirement Health Care | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 2 | $ | — | $ | — | $ | — | |||||||||||
Interest cost | 22 | 26 | 25 | 2 | 2 | 2 | |||||||||||||||||
Expected return on plan assets | (20 | ) | (17 | ) | (20 | ) | — | — | — | ||||||||||||||
Amortization of unrecognized items | 11 | 10 | 12 | (2 | ) | (3 | ) | 2 | |||||||||||||||
Total | $ | 14 | $ | 20 | $ | 19 | $ | — | $ | (1 | ) | $ | 4 |
Retirement Income | Retirement Health Care | ||||||
Net actuarial loss (gain) | $ | 262 | $ | (16 | ) | ||
Prior service benefit | — | (5 | ) | ||||
Net deferred income tax (assets) liabilities | (98 | ) | 7 | ||||
Accumulated other comprehensive loss (income) | $ | 164 | $ | (14 | ) |
Retirement Income | Retirement Health Care | ||||||
Net actuarial loss (gain) as of beginning of year | $ | 296 | $ | (13 | ) | ||
Amortization during the year | (11 | ) | 1 | ||||
Loss (gain) during the year | (23 | ) | (4 | ) | |||
Net actuarial loss (gain) as of end of year | $ | 262 | $ | (16 | ) |
Retirement Income | Retirement Health Care | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Discount rate | 3.70 | % | 3.42 | % | 3.66 | % | 3.42 | % | |||
Rate of compensation increase | 2.83 | % | 2.92 | % | n/a | n/a |
Retirement Income | ||||||||
2017 | 2016 | 2015 | ||||||
Discount rate | 3.42 | % | 4.20 | % | 4.05 | % | ||
Rate of compensation increase | 2.92 | % | 3.37 | % | 4.46 | % | ||
Expected return on plan assets | 4.73 | % | 4.34 | % | 5.28 | % | ||
Retirement Health Care | ||||||||
2017 | 2016 | 2015 | ||||||
Discount rate | 3.42 | % | 4.16 | % | 4.00 | % |
Retirement Income | Retirement Health Care | ||||||
2018 | $ | 40 | $ | 3 | |||
2019 | 51 | 3 | |||||
2020 | 38 | 3 | |||||
2021 | 37 | 3 | |||||
2022 | 37 | 3 | |||||
Fiscal years 2023 through 2027 | 190 | 12 |
% Target Allocation | % of Plan Assets | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
U.S. equity | 11 | % | 11 | % | 11 | % | 11 | % | |||
International equity | 12 | % | 12 | % | 12 | % | 11 | % | |||
Fixed income | 74 | % | 74 | % | 73 | % | 74 | % | |||
Other | 3 | % | 3 | % | 4 | % | 4 | % | |||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
2017 | |||||||||||
Level 1 | Level 2 | Total | |||||||||
Cash equivalents | $ | 2 | $ | — | $ | 2 | |||||
Total assets in the fair value hierarchy | 2 | — | 2 | ||||||||
Common collective trusts measured at net asset value | |||||||||||
Bond funds | $ | 310 | |||||||||
International equity funds | 64 | ||||||||||
Domestic equity funds | 46 | ||||||||||
Real estate fund | 12 | ||||||||||
Total common collective trusts measured at net asset value | 432 | ||||||||||
Total assets at fair value | $ | 434 |
2016 | |||||||||||
Level 1 | Level 2 | Total | |||||||||
Cash equivalents | $ | 2 | $ | — | $ | 2 | |||||
Total assets in the fair value hierarchy | 2 | — | 2 | ||||||||
Common collective trusts measured at net asset value | |||||||||||
Bond funds | $ | 307 | |||||||||
International equity funds | 56 | ||||||||||
Domestic equity funds | 44 | ||||||||||
Real estate fund | 14 | ||||||||||
Total common collective trusts measured at net asset value | 421 | ||||||||||
Total assets at fair value | $ | 423 |
|
• | Cleaning consists of laundry, home care and professional products marketed and sold in the United States. Products within this segment include laundry additives, including bleach products under the Clorox® brand and Clorox 2® stain fighter and color booster; home care products, primarily under the Clorox® , Formula 409® , Liquid-Plumr® , Pine-Sol® , S.O.S® and Tilex® brands; naturally derived products under the Green Works® brand; and professional cleaning and disinfecting products under the Clorox® , Dispatch® , Aplicare® , HealthLink® and Clorox Healthcare® brands. |
• | Household consists of charcoal, bags, wraps and containers, cat litter and digestive health products marketed and sold in the United States. Products within this segment include charcoal products under the Kingsford® and Match Light® brands; bags, wraps and containers under the Glad® brand; cat litter products under the Fresh Step® , Scoop Away® and Ever Clean® brands; and digestive health products under the RenewLife® brand. |
• | Lifestyle consists of food products, water-filtration systems and filters and natural personal care products marketed and sold in the United States. Products within this segment include dressings and sauces, primarily under the Hidden Valley® , KC Masterpiece®, Kingsford® and Soy Vay® brands; water-filtration systems and filters under the Brita® brand; and natural personal care products under the Burt’s Bees® brand. |
• | International consists of products sold outside the United States. Products within this segment include laundry, home care, water-filtration, digestive health products, charcoal and cat litter products, food products, bags, wraps and containers, natural personal care products and professional cleaning and disinfecting products, primarily under the Clorox®, Glad®, PinoLuz®, Ayudin®, Limpido®, Clorinda®, Poett®, Mistolin®, Lestoil®, Bon Bril®, Brita®, Green Works®, Pine-Sol®, Agua Jane®, Chux®, RenewLife®, Kingsford®, Fresh Step®, Scoop Away®, Ever Clean®, KC Masterpiece®, Hidden Valley®, Burt’s Bees® brands and Clorox Healthcare® brands. |
Fiscal Year | Cleaning | Household | Lifestyle | International | Corporate | Total Company | |||||||||||||||||||
Net sales | 2017 | $ | 2,002 | $ | 1,961 | $ | 1,000 | $ | 1,010 | $ | — | $ | 5,973 | ||||||||||||
2016 | 1,912 | 1,862 | 990 | 997 | — | 5,761 | |||||||||||||||||||
2015 | 1,824 | 1,794 | 950 | 1,087 | — | 5,655 | |||||||||||||||||||
Earnings (losses) from continuing operations before income taxes | 2017 | 523 | 419 | 244 | 81 | (234 | ) | 1,033 | |||||||||||||||||
2016 | 511 | 428 | 251 | 66 | (273 | ) | 983 | ||||||||||||||||||
2015 | 445 | 375 | 257 | 79 | (235 | ) | 921 | ||||||||||||||||||
Income from equity investees | 2017 | — | — | — | 19 | — | 19 | ||||||||||||||||||
2016 | — | — | — | 15 | — | 15 | |||||||||||||||||||
2015 | — | — | — | 14 | — | 14 | |||||||||||||||||||
Total assets (1) | 2017 | 881 | 1,103 | 902 | 1,060 | 627 | 4,573 | ||||||||||||||||||
2016 | 883 | 1,092 | 880 | 1,057 | 598 | 4,510 | |||||||||||||||||||
Capital expenditures | 2017 | 76 | 82 | 30 | 37 | 6 | 231 | ||||||||||||||||||
2016 | 44 | 83 | 18 | 24 | 3 | 172 | |||||||||||||||||||
2015 | 35 | 50 | 11 | 25 | 4 | 125 | |||||||||||||||||||
Depreciation and amortization | 2017 | 51 | 64 | 20 | 22 | 6 | 163 | ||||||||||||||||||
2016 | 61 | 60 | 19 | 21 | 4 | 165 | |||||||||||||||||||
2015 | 52 | 67 | 19 | 24 | 7 | 169 | |||||||||||||||||||
Significant non-cash charges included in earnings (losses) from continuing operations before income taxes: | |||||||||||||||||||||||||
Stock-based compensation | 2017 | 16 | 15 | 9 | 2 | 9 | 51 | ||||||||||||||||||
2016 | 10 | 8 | 5 | 1 | 21 | 45 | |||||||||||||||||||
2015 | 8 | 7 | 4 | 1 | 12 | 32 |
2017 | 2016 | 2015 | ||||||
Home Care products | 25 | % | 24 | % | 24 | % | ||
Bags, wraps and containers | 18 | % | 19 | % | 19 | % | ||
Laundry additives | 15 | % | 16 | % | 17 | % | ||
Charcoal products | 11 | % | 11 | % | 11 | % | ||
Food products | 10 | % | 10 | % | 10 | % |
Fiscal Year | United States | Foreign | Total Company | ||||||||||
Net sales | 2017 | $ | 5,001 | $ | 972 | $ | 5,973 | ||||||
2016 | 4,805 | 956 | 5,761 | ||||||||||
2015 | 4,609 | 1,046 | 5,655 | ||||||||||
Property, plant and equipment, net | 2017 | 823 | 108 | 931 | |||||||||
2016 | 799 | 107 | 906 |
|
|
Dollars in millions, except market price and per share data | Quarters Ended | ||||||||||||||||||
September 30 | December 31 | March 31 | June 30 | Total Year | |||||||||||||||
Fiscal year ended June 30, 2017 | |||||||||||||||||||
Net sales | $ | 1,443 | $ | 1,406 | $ | 1,477 | $ | 1,647 | $ | 5,973 | |||||||||
Cost of products sold | 803 | 777 | 827 | 895 | 3,302 | ||||||||||||||
Earnings from continuing operations | 179 | 150 | 172 | 202 | 703 | ||||||||||||||
Earnings (losses) from discontinued operations, net of tax | — | (1 | ) | — | (1 | ) | (2 | ) | |||||||||||
Net earnings | 179 | 149 | 172 | 201 | 701 | ||||||||||||||
Per common share: | |||||||||||||||||||
Basic | |||||||||||||||||||
Continuing operations | $ | 1.39 | $ | 1.16 | $ | 1.34 | $ | 1.56 | $ | 5.45 | |||||||||
Discontinued operations | — | — | — | (0.01 | ) | (0.02 | ) | ||||||||||||
Basic net earnings per share | $ | 1.39 | $ | 1.16 | $ | 1.34 | $ | 1.55 | $ | 5.43 | |||||||||
Diluted | |||||||||||||||||||
Continuing operations | $ | 1.36 | $ | 1.14 | $ | 1.31 | $ | 1.53 | $ | 5.35 | |||||||||
Discontinued operations | — | — | — | (0.01 | ) | (0.02 | ) | ||||||||||||
Diluted net earnings per share | $ | 1.36 | $ | 1.14 | $ | 1.31 | $ | 1.52 | $ | 5.33 | |||||||||
Dividends declared per common share | $ | 0.80 | $ | 0.80 | $ | 0.80 | $ | 0.84 | $ | 3.24 | |||||||||
Market price (NYSE) | |||||||||||||||||||
High | $ | 140.47 | $ | 124.70 | 139.30 | $ | 141.76 | $ | 141.76 | ||||||||||
Low | 121.75 | 111.24 | 118.41 | 127.62 | 111.24 | ||||||||||||||
Year-end | 133.24 | ||||||||||||||||||
Fiscal year ended June 30, 2016 | |||||||||||||||||||
Net sales | $ | 1,390 | $ | 1,345 | $ | 1,426 | $ | 1,600 | $ | 5,761 | |||||||||
Cost of products sold | 765 | 745 | 780 | 873 | 3,163 | ||||||||||||||
Earnings from continuing operations | 173 | 151 | 159 | 165 | 648 | ||||||||||||||
Losses from discontinued operations, | |||||||||||||||||||
net of tax | (1 | ) | (2 | ) | 3 | — | — | ||||||||||||
Net earnings | 172 | 149 | 162 | 165 | 648 | ||||||||||||||
Per common share: | |||||||||||||||||||
Basic | |||||||||||||||||||
Continuing operations | $ | 1.34 | $ | 1.16 | $ | 1.23 | $ | 1.28 | $ | 5.01 | |||||||||
Discontinued operations | (0.01 | ) | (0.01 | ) | 0.02 | — | — | ||||||||||||
Basic net earnings per share | $ | 1.33 | $ | 1.15 | $ | 1.25 | $ | 1.28 | $ | 5.01 | |||||||||
Diluted | |||||||||||||||||||
Continuing operations | $ | 1.32 | $ | 1.14 | $ | 1.21 | $ | 1.26 | $ | 4.92 | |||||||||
Discontinued operations | (0.01 | ) | (0.01 | ) | 0.02 | — | — | ||||||||||||
Diluted net earnings per share | $ | 1.31 | $ | 1.13 | $ | 1.23 | $ | 1.26 | $ | 4.92 | |||||||||
Dividends declared per common share | $ | 0.77 | $ | 0.77 | $ | 0.77 | $ | 0.80 | $ | 3.11 | |||||||||
Market price (NYSE) | |||||||||||||||||||
High | $ | 119.75 | $ | 131.78 | $ | 132.19 | $ | 138.41 | $ | 138.41 | |||||||||
Low | 104.26 | 114.06 | 122.40 | 119.23 | 104.26 | ||||||||||||||
Year-end | 138.39 |
Years ended June 30 | |||||||||||||||||||
Dollars in millions, except per share data | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
OPERATIONS | |||||||||||||||||||
Net sales | $ | 5,973 | $ | 5,761 | $ | 5,655 | $ | 5,514 | $ | 5,533 | |||||||||
Gross profit | 2,671 | 2,598 | 2,465 | 2,356 | 2,391 | ||||||||||||||
Earnings from continuing operations | $ | 703 | $ | 648 | $ | 606 | $ | 579 | $ | 573 | |||||||||
(Losses) earnings from discontinued operations, net of tax | (2 | ) | — | (26 | ) | (21 | ) | (1 | ) | ||||||||||
Net earnings | $ | 701 | $ | 648 | $ | 580 | $ | 558 | $ | 572 | |||||||||
COMMON STOCK | |||||||||||||||||||
Earnings per share | |||||||||||||||||||
Continuing operations | |||||||||||||||||||
Basic | $ | 5.45 | $ | 5.01 | $ | 4.65 | $ | 4.47 | $ | 4.37 | |||||||||
Diluted | 5.35 | 4.92 | 4.57 | 4.39 | 4.31 | ||||||||||||||
Dividends declared per share | 3.24 | 3.11 | 2.99 | 2.87 | 2.63 | ||||||||||||||
As of June 30 | |||||||||||||||||||
Dollars in millions | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
OTHER DATA | |||||||||||||||||||
Total assets (1) | $ | 4,573 | $ | 4,510 | $ | 4,154 | $ | 4,251 | $ | 4,302 | |||||||||
Long-term debt (1) | 1,391 | 1,789 | 1,786 | 1,588 | 2,161 |
|
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||
Additions | Deductions | |||||||||||||||||||
Description | Balance at beginning of period | Charged to costs and expenses | Credited to costs and expenses | Credited to other accounts | Balance at end of period | |||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||||
Year ended June 30, 2017 | $ | (5 | ) | $ | — | $ | 2 | $ | — | $ | (3 | ) | ||||||||
Year ended June 30, 2016 | (4 | ) | (1 | ) | — | — | (5 | ) | ||||||||||||
Year ended June 30, 2015 | (3 | ) | (1 | ) | — | — | (4 | ) | ||||||||||||
LIFO allowance | ||||||||||||||||||||
Year ended June 30, 2017 | $ | (32 | ) | $ | — | $ | — | $ | 6 | $ | (26 | ) | ||||||||
Year ended June 30, 2016 | (34 | ) | (1 | ) | — | 3 | (32 | ) | ||||||||||||
Year ended June 30, 2015 | (36 | ) | — | — | 2 | (34 | ) | |||||||||||||
Valuation allowance on deferred tax assets | ||||||||||||||||||||
Year ended June 30, 2017 | $ | (37 | ) | $ | (3 | ) | $ | — | $ | — | $ | (40 | ) | |||||||
Year ended June 30, 2016 | (34 | ) | (5 | ) | — | 2 | (37 | ) | ||||||||||||
Year ended June 30, 2015 | (51 | ) | (4 | ) | — | 21 | (34 | ) |
|
Estimated Useful Lives | |
Buildings and leasehold improvements | 7 - 40 years |
Land improvements | 10 - 30 years |
Machinery and equipment | 3 - 15 years |
Computer equipment | 3 - 5 years |
Capitalized software costs | 3 - 7 years |
|
Estimated Useful Lives | |
Buildings and leasehold improvements | 7 - 40 years |
Land improvements | 10 - 30 years |
Machinery and equipment | 3 - 15 years |
Computer equipment | 3 - 5 years |
Capitalized software costs | 3 - 7 years |
|
2017 | 2016 | 2015 | |||||||||
Operating losses from Clorox Venezuela before income taxes | $ | — | $ | — | $ | (6 | ) | ||||
Exit costs and other related expenses for Clorox Venezuela | (4 | ) | (2 | ) | (78 | ) | |||||
Total earnings (losses) from Clorox Venezuela before income taxes | (4 | ) | (2 | ) | (84 | ) | |||||
Income tax benefit attributable to Clorox Venezuela | 2 | 2 | 29 | ||||||||
Total earnings (losses) from Clorox Venezuela, net of tax | (2 | ) | — | (55 | ) | ||||||
Gains (losses) from discontinued operations other than | |||||||||||
Clorox Venezuela, net of tax | — | — | 29 | ||||||||
Losses from discontinued operations, net of tax | $ | (2 | ) | $ | — | $ | (26 | ) |
2017 | 2016 | 2015 | |||||||||
Operating losses from Clorox Venezuela before income taxes | $ | — | $ | — | $ | (6 | ) | ||||
Net asset charges: | |||||||||||
Inventories | — | — | (11 | ) | |||||||
Property, plant and equipment | — | — | (16 | ) | |||||||
Trademark and other intangible assets | — | — | (6 | ) | |||||||
Other assets | — | — | (2 | ) | |||||||
Other exit and business termination costs: | |||||||||||
Severance | — | — | (3 | ) | |||||||
Recognition of deferred foreign currency translation loss | — | — | (30 | ) | |||||||
Other | (4 | ) | (2 | ) | (10 | ) | |||||
Total losses from Clorox Venezuela before income taxes | (4 | ) | (2 | ) | (84 | ) | |||||
Income tax benefit attributable to Clorox Venezuela | 2 | 2 | 29 | ||||||||
Total losses from Clorox Venezuela, net of tax | (2 | ) | — | (55 | ) | ||||||
Gains from discontinued operations other than Clorox Venezuela, net of tax | — | — | 29 | ||||||||
Losses from discontinued operations, net of tax | $ | (2 | ) | $ | — | $ | (26 | ) |
|
RenewLife | |||
Goodwill | $ | 137 | |
Trademarks | 134 | ||
Customer relationships | 36 | ||
Property, plant and equipment | 3 | ||
Working capital, net | 40 | ||
Deferred income taxes | (60 | ) | |
Purchase Price | $ | 290 |
|
2017 | 2016 | ||||||
Finished goods | $ | 363 | $ | 361 | |||
Raw materials and packaging | 119 | 111 | |||||
Work in process | 3 | 3 | |||||
LIFO allowances | (26 | ) | (32 | ) | |||
Total | $ | 459 | $ | 443 |
|
2017 | 2016 | ||||||
Machinery and equipment | $ | 1,696 | $ | 1,607 | |||
Buildings | 524 | 524 | |||||
Capitalized software costs | 371 | 368 | |||||
Land and improvements | 116 | 118 | |||||
Construction in progress | 130 | 112 | |||||
Computer equipment | 95 | 88 | |||||
Total | 2,932 | 2,817 | |||||
Less: Accumulated depreciation and amortization | (2,001 | ) | (1,911 | ) | |||
Property, plant and equipment, net | $ | 931 | $ | 906 |
|
Goodwill | |||||||||||||||||||
Cleaning | Household | Lifestyle | International | Total | |||||||||||||||
Balance June 30, 2015 | $ | 323 | $ | 85 | $ | 244 | $ | 415 | $ | 1,067 | |||||||||
Acquisition | — | 122 | — | 15 | 137 | ||||||||||||||
Effect of foreign currency translation | — | — | — | (7 | ) | (7 | ) | ||||||||||||
Balance June 30, 2016 | 323 | 207 | 244 | 423 | 1,197 | ||||||||||||||
Effect of foreign currency translation | — | — | — | (1 | ) | (1 | ) | ||||||||||||
Balance June 30, 2017 | $ | 323 | $ | 207 | $ | 244 | $ | 422 | $ | 1,196 |
As of June 30, 2017 | As of June 30, 2016 | ||||||||||||||||||||||
Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | ||||||||||||||||||
Trademarks not subject to amortization | $ | 645 | $ | — | $ | 645 | $ | 647 | $ | — | $ | 647 | |||||||||||
Trademarks subject to amortization | 32 | 23 | 9 | 32 | 22 | 10 | |||||||||||||||||
Other intangible assets | 358 | 290 | 68 | 358 | 280 | 78 | |||||||||||||||||
Total | $ | 1,035 | $ | 313 | $ | 722 | $ | 1,037 | $ | 302 | $ | 735 |
|
2017 | 2016 | ||||||
Accounts payable | $ | 501 | $ | 490 | |||
Compensation and employee benefit costs | 162 | 192 | |||||
Trade and sales promotion | 117 | 127 | |||||
Dividends | 116 | 108 | |||||
Other | 109 | 118 | |||||
Total | $ | 1,005 | $ | 1,035 |
|
2017 | 2016 | ||||||
Commercial paper | $ | 403 | $ | 522 | |||
Foreign borrowings | 1 | 1 | |||||
Total | $ | 404 | $ | 523 |
2017 | 2016 | ||||||
Senior unsecured notes and debentures: | |||||||
5.95%, $400 due October 2017 | $ | 400 | $ | 400 | |||
3.80%, $300 due November 2021 | 298 | 297 | |||||
3.05%, $600 due September 2022 | 596 | 596 | |||||
3.50%, $500 due December 2024 | 497 | 496 | |||||
Total | 1,791 | 1,789 | |||||
Less: Current maturities of long-term debt | (400 | ) | — | ||||
Long-term debt (1) | $ | 1,391 | $ | 1,789 |
2017 | 2016 | ||||||
Revolving credit facility | $ | 1,100 | $ | 1,100 | |||
Foreign and other credit lines | 29 | 28 | |||||
Total | $ | 1,129 | $ | 1,128 |
|
2017 | 2016 | ||||||
Venture agreement terminal obligation, net | $ | 317 | $ | 302 | |||
Employee benefit obligations | 298 | 335 | |||||
Taxes | 42 | 40 | |||||
Other | 113 | 107 | |||||
Total | $ | 770 | $ | 784 |
|
Gains (losses) recognized in Other comprehensive income | |||||||||||
2017 | 2016 | 2015 | |||||||||
Commodity purchase derivative contracts | $ | (3 | ) | $ | (4 | ) | $ | (13 | ) | ||
Foreign exchange derivative contracts | (1 | ) | (3 | ) | 7 | ||||||
Interest rate derivative contracts | — | — | (12 | ) | |||||||
Total | $ | (4 | ) | $ | (7 | ) | $ | (18 | ) |
Gains (losses) reclassified from Accumulated other comprehensive loss and recognized in Net earnings | |||||||||||
2017 | 2016 | 2015 | |||||||||
Commodity purchase derivative contracts | $ | (2 | ) | $ | (13 | ) | $ | (5 | ) | ||
Foreign exchange derivative contracts | (3 | ) | 1 | 3 | |||||||
Interest rate derivative contracts | (6 | ) | (6 | ) | (5 | ) | |||||
Total | $ | (11 | ) | $ | (18 | ) | $ | (7 | ) |
2017 | 2016 | ||||||||||||||||||
Assets | Balance sheet classification | Fair value hierarchy level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||
Investments including money market funds | Cash and cash equivalents (a) | 1 | $ | 221 | $ | 221 | $ | 234 | $ | 234 | |||||||||
Time deposits | Cash and cash equivalents (a) | 2 | 115 | 115 | 79 | 79 | |||||||||||||
Commodity purchase futures contracts | Prepaid expenses and other current assets | 1 | — | — | 1 | 1 | |||||||||||||
Commodity purchase swaps contracts | Prepaid expenses and other current assets | 2 | 1 | 1 | — | — | |||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other current assets | 2 | — | — | 1 | 1 | |||||||||||||
Commodity purchase swaps contracts | Other assets | 2 | — | — | 1 | 1 | |||||||||||||
Trust assets for nonqualified deferred compensation plans | Other assets | 1 | 72 | 72 | 52 | 52 | |||||||||||||
$ | 409 | $ | 409 | $ | 368 | $ | 368 | ||||||||||||
Liabilities | |||||||||||||||||||
Notes and loans payable | Notes and loans payable (b) | 2 | $ | 404 | $ | 404 | $ | 523 | $ | 523 | |||||||||
Commodity purchase swaps contracts | Accounts payable and accrued liabilities | 2 | 1 | 1 | 1 | 1 | |||||||||||||
Foreign exchange forward contracts | Accounts payable and accrued liabilities | 2 | 1 | 1 | 4 | 4 | |||||||||||||
Current maturities of long-term debt and Long-term debt | Current maturities of long- term debt and Long-term debt (c) | 2 | 1,791 | 1,855 | 1,789 | 1,922 | |||||||||||||
$ | 2,197 | $ | 2,261 | $ | 2,317 | $ | 2,450 |
(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 loan payable is composed of U.S. commercial paper and/or other similar short-term debts 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. |
|
Year | Operating leases | Capital leases | |||||
2018 | $ | 52 | $ | 2 | |||
2019 | 46 | 1 | |||||
2020 | 41 | — | |||||
2021 | 37 | — | |||||
2022 | 32 | — | |||||
Thereafter | 137 | — | |||||
Total | $ | 345 | $ | 3 |
Year | Purchase Obligations | ||
2018 | $ | 158 | |
2019 | 70 | ||
2020 | 36 | ||
2021 | 20 | ||
2022 | 13 | ||
Thereafter | 21 | ||
Total | $ | 318 |
|
2017 | 2016 | 2015 | ||||||||||||||||||
Amount | Shares (in 000's) | Amount | Shares (in 000's) | Amount | Shares (in 000's) | |||||||||||||||
Evergreen Program | $ | 189 | 1,505 | $ | 254 | 2,151 | $ | 434 | 4,016 |
2017 | 2016 | 2015 | |||||||||
Dividends per share declared | $ | 3.24 | $ | 3.11 | $ | 2.99 | |||||
Dividends per share paid | 3.20 | 3.08 | 2.96 |
Foreign currency translation adjustments | Net unrealized gains (losses) on derivatives | Pension and postretirement benefit adjustments | Accumulated other comprehensive (losses) income | ||||||||||||
Balance June 30, 2014 | $ | (246 | ) | $ | (39 | ) | $ | (132 | ) | $ | (417 | ) | |||
Other comprehensive income (loss) before reclassifications | (92 | ) | (18 | ) | (29 | ) | (139 | ) | |||||||
Amounts reclassified from Accumulated other comprehensive net losses | — | 7 | — | 7 | |||||||||||
Recognition of deferred foreign currency translation loss | 30 | — | — | 30 | |||||||||||
Income tax benefit (expense) | 8 | (3 | ) | 12 | 17 | ||||||||||
Net current period other comprehensive income (loss) | (54 | ) | (14 | ) | (17 | ) | (85 | ) | |||||||
Balance June 30, 2015 | (300 | ) | (53 | ) | (149 | ) | (502 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (43 | ) | (7 | ) | (38 | ) | (88 | ) | |||||||
Amounts reclassified from Accumulated other comprehensive net losses | — | 18 | — | 18 | |||||||||||
Income tax benefit (expense) | (10 | ) | (2 | ) | 14 | 2 | |||||||||
Net current period other comprehensive income (loss) | (53 | ) | 9 | (24 | ) | (68 | ) | ||||||||
Balance June 30, 2016 | (353 | ) | (44 | ) | (173 | ) | (570 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (3 | ) | (4 | ) | 27 | 20 | |||||||||
Amounts reclassified from Accumulated other comprehensive net losses | — | 11 | 9 | 20 | |||||||||||
Income tax benefit (expense) | — | — | (13 | ) | (13 | ) | |||||||||
Net current period other comprehensive income (loss) | (3 | ) | 7 | 23 | 27 | ||||||||||
Balance June 30, 2017 | $ | (356 | ) | $ | (37 | ) | $ | (150 | ) | $ | (543 | ) |
|
2017 | 2016 | 2015 | ||||||
Basic | 128,953 | 129,472 | 130,310 | |||||
Dilutive effect of stock options and other | 2,613 | 2,245 | 2,466 | |||||
Diluted | 131,566 | 131,717 | 132,776 | |||||
Antidilutive stock options and other | 11 | 42 | 23 |
|
2017 | 2016 | 2015 | |||||||||
Cost of products sold | $ | 7 | $ | 6 | $ | 4 | |||||
Selling and administrative expenses | 40 | 35 | 25 | ||||||||
Research and development costs | 4 | 4 | 3 | ||||||||
Total compensation costs | $ | 51 | $ | 45 | $ | 32 | |||||
Related income tax benefit | $ | 19 | $ | 17 | $ | 12 |
2017 | 2016 | 2015 | |||
Expected life | 5.5 years | 5.6 years | 5.6 to 5.8 years | ||
Weighted-average expected life | 5.5 years | 5.6 years | 5.7 years | ||
Expected volatility | 16.2% to 16.9% | 16.4% to 17.3% | 16.3% to 18.6% | ||
Weighted-average volatility | 16.9% | 17.2% | 16.6% | ||
Risk-free interest rate | 1.3% to 2.2% | 1.3% to 1.7% | 1.4% to 2.0% | ||
Weighted-average risk-free interest rate | 1.3% | 1.7% | 1.9% | ||
Dividend yield | 2.4% to 2.8% | 2.5% to 2.8% | 2.8% to 3.4% | ||
Weighted-average dividend yield | 2.6% | 2.8% | 3.3% |
Number of Shares (In thousands) | Weighted- Average Exercise Price per Share | Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
Options outstanding as of June 30, 2016 | 6,827 | $ | 85 | 7 years | $ | 366 | ||||||
Granted | 1,318 | 123 | ||||||||||
Exercised | (1,115 | ) | 75 | |||||||||
Canceled | (123 | ) | 112 | |||||||||
Options outstanding as of June 30, 2017 | 6,907 | $ | 93 | 6 years | $ | 277 | ||||||
Options vested as of June 30, 2017 | 3,835 | $ | 80 | 5 years | $ | 204 |
Number of Shares (In thousands) | Weighted-Average Grant Date Fair Value per Share | |||||
Restricted stock awards as of June 30, 2016 | 13 | $ | 108 | |||
Granted | 10 | 132 | ||||
Vested | (4 | ) | 110 | |||
Forfeited | (1 | ) | 96 | |||
Restricted stock awards as of June 30, 2017 | 18 | $ | 120 |
Number of Shares (In thousands) | Weighted-Average Grant Date Fair Value per Share | |||||
Performance unit awards as of June 30, 2016 | 952 | $ | 90 | |||
Granted | 253 | 123 | ||||
Distributed | (35 | ) | 59 | |||
Forfeited | (308 | ) | 87 | |||
Performance unit awards as of June 30, 2017 | 862 | $ | 102 | |||
Performance units vested and deferred as of June 30, 2017 | — | $ | — |
|
2017 | 2016 | 2015 | |||||||||
Income from equity investees | $ | (19 | ) | $ | (15 | ) | $ | (14 | ) | ||
Gain on sale of assets and investments, net | (11 | ) | (11 | ) | (13 | ) | |||||
Interest income | (4 | ) | (5 | ) | (4 | ) | |||||
Asset impairment charges | 23 | 10 | 3 | ||||||||
Amortization of trademarks and other intangible assets | 10 | 8 | 8 | ||||||||
Foreign exchange transaction losses, net | (1 | ) | 1 | 9 | |||||||
Other | 8 | 5 | (2 | ) | |||||||
Total | $ | 6 | $ | (7 | ) | $ | (13 | ) |
|
2017 | 2016 | 2015 | |||||||||
Current | |||||||||||
Federal | $ | 291 | $ | 254 | $ | 265 | |||||
State | 36 | 31 | 28 | ||||||||
Foreign | 38 | 45 | 38 | ||||||||
Total current | 365 | 330 | 331 | ||||||||
Deferred | |||||||||||
Federal | (29 | ) | 11 | (13 | ) | ||||||
State | (2 | ) | 1 | (1 | ) | ||||||
Foreign | (4 | ) | (7 | ) | (2 | ) | |||||
Total deferred | (35 | ) | 5 | (16 | ) | ||||||
Total | $ | 330 | $ | 335 | $ | 315 |
2017 | 2016 | 2015 | |||||||||
United States | $ | 927 | $ | 900 | $ | 829 | |||||
Foreign | 106 | 83 | 92 | ||||||||
Total | $ | 1,033 | $ | 983 | $ | 921 |
2017 | 2016 | 2015 | ||||||
Statutory federal tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State taxes (net of federal tax benefits) | 2.2 | 2.1 | 2.1 | |||||
Tax differential on foreign earnings | (0.6 | ) | 0.5 | (0.3 | ) | |||
Federal domestic manufacturing deduction | (2.6 | ) | (2.4 | ) | (2.1 | ) | ||
Change in valuation allowance | 0.2 | 0.5 | 0.6 | |||||
Federal excess tax benefits | (2.0 | ) | — | — | ||||
Other differences | (0.3 | ) | (1.6 | ) | (1.1 | ) | ||
Effective tax rate | 31.9 | % | 34.1 | % | 34.2 | % |
2017 | 2016 | ||||||
Deferred tax assets (a) | |||||||
Compensation and benefit programs | $ | 182 | $ | 193 | |||
Basis difference related to Venture Agreement | 30 | 30 | |||||
Accruals and reserves | 41 | 34 | |||||
Inventory costs | 25 | 21 | |||||
Net operating loss and tax credit carryforwards | 52 | 48 | |||||
Other | 54 | 54 | |||||
Subtotal | 384 | 380 | |||||
Valuation allowance | (40 | ) | (37 | ) | |||
Total deferred tax assets | 344 | 343 | |||||
Deferred tax liabilities (a) | |||||||
Fixed and intangible assets | (311 | ) | (325 | ) | |||
Low-income housing partnerships | (25 | ) | (23 | ) | |||
Unremitted foreign earnings | (7 | ) | (16 | ) | |||
Other | (24 | ) | (25 | ) | |||
Total deferred tax liabilities | (367 | ) | (389 | ) | |||
Net deferred tax assets (liabilities) | $ | (23 | ) | $ | (46 | ) |
2017 | 2016 | ||||||
Valuation allowance at beginning of year | $ | (37 | ) | $ | (34 | ) | |
Net decrease/(increase) for other foreign deferred tax assets | — | 3 | |||||
Net decrease/(increase) for foreign net operating loss carryforwards and tax credits | (3 | ) | (6 | ) | |||
Valuation allowance at end of year | $ | (40 | ) | $ | (37 | ) |
2017 | 2016 | 2015 | |||||||||
Unrecognized tax benefits at beginning of year | $ | 37 | $ | 38 | $ | 71 | |||||
Gross increases - tax positions in prior periods | 1 | 3 | 3 | ||||||||
Gross decreases - tax positions in prior periods | (6 | ) | (3 | ) | (8 | ) | |||||
Gross increases - current period tax positions | 9 | 8 | 6 | ||||||||
Gross decreases - current period tax positions | — | — | — | ||||||||
Lapse of applicable statute of limitations | (1 | ) | (4 | ) | (34 | ) | |||||
Settlements | — | (5 | ) | — | |||||||
Unrecognized tax benefits at end of year | $ | 40 | $ | 37 | $ | 38 |
|
Retirement Income | Retirement Health Care | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in benefit obligations: | |||||||||||||||
Benefit obligation as of beginning of year | $ | 673 | $ | 639 | $ | 47 | $ | 45 | |||||||
Service cost | 1 | 1 | — | — | |||||||||||
Interest cost | 22 | 26 | 2 | 2 | |||||||||||
Actuarial loss (gain) | (21 | ) | 51 | (4 | ) | 2 | |||||||||
Plan amendments | — | (1 | ) | — | — | ||||||||||
Translation and other adjustments | — | (1 | ) | — | — | ||||||||||
Benefits paid | (42 | ) | (42 | ) | (3 | ) | (2 | ) | |||||||
Benefit obligation as of end of year | 633 | 673 | 42 | 47 | |||||||||||
Change in plan assets: | |||||||||||||||
Fair value of assets as of beginning of year | $ | 423 | $ | 409 | $ | — | $ | — | |||||||
Actual return on plan assets | 22 | 26 | — | — | |||||||||||
Employer contributions | 31 | 31 | 3 | 2 | |||||||||||
Benefits paid | (42 | ) | (42 | ) | (3 | ) | (2 | ) | |||||||
Translation and other adjustments | — | (1 | ) | — | — | ||||||||||
Fair value of plan assets as of end of year | 434 | 423 | — | — | |||||||||||
Accrued benefit cost, net funded status | $ | (199 | ) | $ | (250 | ) | $ | (42 | ) | $ | (47 | ) |
Amount recognized in the balance sheets consists of: | |||||||||||||||
Pension benefit assets | $ | 2 | $ | 1 | $ | — | $ | — | |||||||
Current accrued benefit liability | (15 | ) | (14 | ) | (3 | ) | (3 | ) | |||||||
Non-current accrued benefit liability | (186 | ) | (237 | ) | (39 | ) | (44 | ) | |||||||
Accrued benefit cost, net | $ | (199 | ) | $ | (250 | ) | $ | (42 | ) | $ | (47 | ) |
ABO Exceeds the Fair Value of Plan Assets | |||||||
2017 | 2016 | ||||||
Projected benefit obligation | $ | 611 | $ | 651 | |||
Accumulated benefit obligation | 610 | 650 | |||||
Fair value of plan assets | 409 | 399 |
Retirement Income | Retirement Health Care | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 2 | $ | — | $ | — | $ | — | |||||||||||
Interest cost | 22 | 26 | 25 | 2 | 2 | 2 | |||||||||||||||||
Expected return on plan assets | (20 | ) | (17 | ) | (20 | ) | — | — | — | ||||||||||||||
Amortization of unrecognized items | 11 | 10 | 12 | (2 | ) | (3 | ) | 2 | |||||||||||||||
Total | $ | 14 | $ | 20 | $ | 19 | $ | — | $ | (1 | ) | $ | 4 |
Retirement Income | Retirement Health Care | ||||||
Net actuarial loss (gain) | $ | 262 | $ | (16 | ) | ||
Prior service benefit | — | (5 | ) | ||||
Net deferred income tax (assets) liabilities | (98 | ) | 7 | ||||
Accumulated other comprehensive loss (income) | $ | 164 | $ | (14 | ) |
Retirement Income | Retirement Health Care | ||||||
Net actuarial loss (gain) as of beginning of year | $ | 296 | $ | (13 | ) | ||
Amortization during the year | (11 | ) | 1 | ||||
Loss (gain) during the year | (23 | ) | (4 | ) | |||
Net actuarial loss (gain) as of end of year | $ | 262 | $ | (16 | ) |
Retirement Income | Retirement Health Care | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Discount rate | 3.70 | % | 3.42 | % | 3.66 | % | 3.42 | % | |||
Rate of compensation increase | 2.83 | % | 2.92 | % | n/a | n/a |
Retirement Income | ||||||||
2017 | 2016 | 2015 | ||||||
Discount rate | 3.42 | % | 4.20 | % | 4.05 | % | ||
Rate of compensation increase | 2.92 | % | 3.37 | % | 4.46 | % | ||
Expected return on plan assets | 4.73 | % | 4.34 | % | 5.28 | % | ||
Retirement Health Care | ||||||||
2017 | 2016 | 2015 | ||||||
Discount rate | 3.42 | % | 4.16 | % | 4.00 | % |
Retirement Income | Retirement Health Care | ||||||
2018 | $ | 40 | $ | 3 | |||
2019 | 51 | 3 | |||||
2020 | 38 | 3 | |||||
2021 | 37 | 3 | |||||
2022 | 37 | 3 | |||||
Fiscal years 2023 through 2027 | 190 | 12 |
2017 | |||||||||||
Level 1 | Level 2 | Total | |||||||||
Cash equivalents | $ | 2 | $ | — | $ | 2 | |||||
Total assets in the fair value hierarchy | 2 | — | 2 | ||||||||
Common collective trusts measured at net asset value | |||||||||||
Bond funds | $ | 310 | |||||||||
International equity funds | 64 | ||||||||||
Domestic equity funds | 46 | ||||||||||
Real estate fund | 12 | ||||||||||
Total common collective trusts measured at net asset value | 432 | ||||||||||
Total assets at fair value | $ | 434 |
2016 | |||||||||||
Level 1 | Level 2 | Total | |||||||||
Cash equivalents | $ | 2 | $ | — | $ | 2 | |||||
Total assets in the fair value hierarchy | 2 | — | 2 | ||||||||
Common collective trusts measured at net asset value | |||||||||||
Bond funds | $ | 307 | |||||||||
International equity funds | 56 | ||||||||||
Domestic equity funds | 44 | ||||||||||
Real estate fund | 14 | ||||||||||
Total common collective trusts measured at net asset value | 421 | ||||||||||
Total assets at fair value | $ | 423 |
% Target Allocation | % of Plan Assets | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
U.S. equity | 11 | % | 11 | % | 11 | % | 11 | % | |||
International equity | 12 | % | 12 | % | 12 | % | 11 | % | |||
Fixed income | 74 | % | 74 | % | 73 | % | 74 | % | |||
Other | 3 | % | 3 | % | 4 | % | 4 | % | |||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
|
Fiscal Year | Cleaning | Household | Lifestyle | International | Corporate | Total Company | |||||||||||||||||||
Net sales | 2017 | $ | 2,002 | $ | 1,961 | $ | 1,000 | $ | 1,010 | $ | — | $ | 5,973 | ||||||||||||
2016 | 1,912 | 1,862 | 990 | 997 | — | 5,761 | |||||||||||||||||||
2015 | 1,824 | 1,794 | 950 | 1,087 | — | 5,655 | |||||||||||||||||||
Earnings (losses) from continuing operations before income taxes | 2017 | 523 | 419 | 244 | 81 | (234 | ) | 1,033 | |||||||||||||||||
2016 | 511 | 428 | 251 | 66 | (273 | ) | 983 | ||||||||||||||||||
2015 | 445 | 375 | 257 | 79 | (235 | ) | 921 | ||||||||||||||||||
Income from equity investees | 2017 | — | — | — | 19 | — | 19 | ||||||||||||||||||
2016 | — | — | — | 15 | — | 15 | |||||||||||||||||||
2015 | — | — | — | 14 | — | 14 | |||||||||||||||||||
Total assets (1) | 2017 | 881 | 1,103 | 902 | 1,060 | 627 | 4,573 | ||||||||||||||||||
2016 | 883 | 1,092 | 880 | 1,057 | 598 | 4,510 | |||||||||||||||||||
Capital expenditures | 2017 | 76 | 82 | 30 | 37 | 6 | 231 | ||||||||||||||||||
2016 | 44 | 83 | 18 | 24 | 3 | 172 | |||||||||||||||||||
2015 | 35 | 50 | 11 | 25 | 4 | 125 | |||||||||||||||||||
Depreciation and amortization | 2017 | 51 | 64 | 20 | 22 | 6 | 163 | ||||||||||||||||||
2016 | 61 | 60 | 19 | 21 | 4 | 165 | |||||||||||||||||||
2015 | 52 | 67 | 19 | 24 | 7 | 169 | |||||||||||||||||||
Significant non-cash charges included in earnings (losses) from continuing operations before income taxes: | |||||||||||||||||||||||||
Stock-based compensation | 2017 | 16 | 15 | 9 | 2 | 9 | 51 | ||||||||||||||||||
2016 | 10 | 8 | 5 | 1 | 21 | 45 | |||||||||||||||||||
2015 | 8 | 7 | 4 | 1 | 12 | 32 |
2017 | 2016 | 2015 | ||||||
Home Care products | 25 | % | 24 | % | 24 | % | ||
Bags, wraps and containers | 18 | % | 19 | % | 19 | % | ||
Laundry additives | 15 | % | 16 | % | 17 | % | ||
Charcoal products | 11 | % | 11 | % | 11 | % | ||
Food products | 10 | % | 10 | % | 10 | % |
Fiscal Year | United States | Foreign | Total Company | ||||||||||
Net sales | 2017 | $ | 5,001 | $ | 972 | $ | 5,973 | ||||||
2016 | 4,805 | 956 | 5,761 | ||||||||||
2015 | 4,609 | 1,046 | 5,655 | ||||||||||
Property, plant and equipment, net | 2017 | 823 | 108 | 931 | |||||||||
2016 | 799 | 107 | 906 |
|
Dollars in millions, except market price and per share data | Quarters Ended | ||||||||||||||||||
September 30 | December 31 | March 31 | June 30 | Total Year | |||||||||||||||
Fiscal year ended June 30, 2017 | |||||||||||||||||||
Net sales | $ | 1,443 | $ | 1,406 | $ | 1,477 | $ | 1,647 | $ | 5,973 | |||||||||
Cost of products sold | 803 | 777 | 827 | 895 | 3,302 | ||||||||||||||
Earnings from continuing operations | 179 | 150 | 172 | 202 | 703 | ||||||||||||||
Earnings (losses) from discontinued operations, net of tax | — | (1 | ) | — | (1 | ) | (2 | ) | |||||||||||
Net earnings | 179 | 149 | 172 | 201 | 701 | ||||||||||||||
Per common share: | |||||||||||||||||||
Basic | |||||||||||||||||||
Continuing operations | $ | 1.39 | $ | 1.16 | $ | 1.34 | $ | 1.56 | $ | 5.45 | |||||||||
Discontinued operations | — | — | — | (0.01 | ) | (0.02 | ) | ||||||||||||
Basic net earnings per share | $ | 1.39 | $ | 1.16 | $ | 1.34 | $ | 1.55 | $ | 5.43 | |||||||||
Diluted | |||||||||||||||||||
Continuing operations | $ | 1.36 | $ | 1.14 | $ | 1.31 | $ | 1.53 | $ | 5.35 | |||||||||
Discontinued operations | — | — | — | (0.01 | ) | (0.02 | ) | ||||||||||||
Diluted net earnings per share | $ | 1.36 | $ | 1.14 | $ | 1.31 | $ | 1.52 | $ | 5.33 | |||||||||
Dividends declared per common share | $ | 0.80 | $ | 0.80 | $ | 0.80 | $ | 0.84 | $ | 3.24 | |||||||||
Market price (NYSE) | |||||||||||||||||||
High | $ | 140.47 | $ | 124.70 | 139.30 | $ | 141.76 | $ | 141.76 | ||||||||||
Low | 121.75 | 111.24 | 118.41 | 127.62 | 111.24 | ||||||||||||||
Year-end | 133.24 | ||||||||||||||||||
Fiscal year ended June 30, 2016 | |||||||||||||||||||
Net sales | $ | 1,390 | $ | 1,345 | $ | 1,426 | $ | 1,600 | $ | 5,761 | |||||||||
Cost of products sold | 765 | 745 | 780 | 873 | 3,163 | ||||||||||||||
Earnings from continuing operations | 173 | 151 | 159 | 165 | 648 | ||||||||||||||
Losses from discontinued operations, | |||||||||||||||||||
net of tax | (1 | ) | (2 | ) | 3 | — | — | ||||||||||||
Net earnings | 172 | 149 | 162 | 165 | 648 | ||||||||||||||
Per common share: | |||||||||||||||||||
Basic | |||||||||||||||||||
Continuing operations | $ | 1.34 | $ | 1.16 | $ | 1.23 | $ | 1.28 | $ | 5.01 | |||||||||
Discontinued operations | (0.01 | ) | (0.01 | ) | 0.02 | — | — | ||||||||||||
Basic net earnings per share | $ | 1.33 | $ | 1.15 | $ | 1.25 | $ | 1.28 | $ | 5.01 | |||||||||
Diluted | |||||||||||||||||||
Continuing operations | $ | 1.32 | $ | 1.14 | $ | 1.21 | $ | 1.26 | $ | 4.92 | |||||||||
Discontinued operations | (0.01 | ) | (0.01 | ) | 0.02 | — | — | ||||||||||||
Diluted net earnings per share | $ | 1.31 | $ | 1.13 | $ | 1.23 | $ | 1.26 | $ | 4.92 | |||||||||
Dividends declared per common share | $ | 0.77 | $ | 0.77 | $ | 0.77 | $ | 0.80 | $ | 3.11 | |||||||||
Market price (NYSE) | |||||||||||||||||||
High | $ | 119.75 | $ | 131.78 | $ | 132.19 | $ | 138.41 | $ | 138.41 | |||||||||
Low | 104.26 | 114.06 | 122.40 | 119.23 | 104.26 | ||||||||||||||
Year-end | 138.39 |
Years ended June 30 | |||||||||||||||||||
Dollars in millions, except per share data | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
OPERATIONS | |||||||||||||||||||
Net sales | $ | 5,973 | $ | 5,761 | $ | 5,655 | $ | 5,514 | $ | 5,533 | |||||||||
Gross profit | 2,671 | 2,598 | 2,465 | 2,356 | 2,391 | ||||||||||||||
Earnings from continuing operations | $ | 703 | $ | 648 | $ | 606 | $ | 579 | $ | 573 | |||||||||
(Losses) earnings from discontinued operations, net of tax | (2 | ) | — | (26 | ) | (21 | ) | (1 | ) | ||||||||||
Net earnings | $ | 701 | $ | 648 | $ | 580 | $ | 558 | $ | 572 | |||||||||
COMMON STOCK | |||||||||||||||||||
Earnings per share | |||||||||||||||||||
Continuing operations | |||||||||||||||||||
Basic | $ | 5.45 | $ | 5.01 | $ | 4.65 | $ | 4.47 | $ | 4.37 | |||||||||
Diluted | 5.35 | 4.92 | 4.57 | 4.39 | 4.31 | ||||||||||||||
Dividends declared per share | 3.24 | 3.11 | 2.99 | 2.87 | 2.63 | ||||||||||||||
As of June 30 | |||||||||||||||||||
Dollars in millions | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
OTHER DATA | |||||||||||||||||||
Total assets (1) | $ | 4,573 | $ | 4,510 | $ | 4,154 | $ | 4,251 | $ | 4,302 | |||||||||
Long-term debt (1) | 1,391 | 1,789 | 1,786 | 1,588 | 2,161 |
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