SEGMENT REPORTING

12 Months Ended

Jun. 30, 2019

The Company operates through strategic business units (SBU) that are aggregated into the following four reportable segments based on the economics and nature of the products sold:

•

Cleaning consists of laundry, home care and professional products marketed and sold in the United States. Products within this segment include laundry additives, such as 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, disinfecting and food service products under the CloroxPro^™, Dispatch^®, Clorox Healthcare^®, Hidden Valley^® and KC Masterpiece^® 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, natural personal care products, and dietary supplements mainly 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; natural personal care products under the Burt’s Bees^®brand; and dietary supplements under the Rainbow Light^®, Natural Vitality^™, and NeoCell^® brands.

•

International consists of products sold outside the United States. Products within this segment include laundry; home care; water-filtration systems and filters; digestive health products; charcoal; 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^®, CloroxPro^™, and Clorox Healthcare^® brands.

Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, other investments and deferred taxes.



	Fiscal Year	Cleaning		Household		Lifestyle		International		Corporate			Total Company
Net sales	2019	$	2,109	$	1,870	$	1,265	$	970	$	—		$	6,214
	2018	2,060		1,959		1,077		1,028		—			6,124
	2017	2,002		1,961		1,000		1,010		—			5,973
Earnings (losses) from continuing operations before income taxes	2019	600		316		255		96		(243		)	1,024
	2018	574		370		243		84		(217		)	1,054
	2017	523		419		244		81		(234		)	1,033
Income from equity investees	2019	—		—		—		15		—			15
	2018	—		—		—		12		—			12
	2017	—		—		—		19		—			19
Total assets	2019	903		1,223		1,581		1,027		382			5,116
	2018	902		1,223		1,533		1,045		357			5,060
Capital expenditures	2019	49		81		39		26		11			206
	2018	60		73		22		33		6			194
	2017	76		82		30		37		6			231
Depreciation and amortization	2019	52		67		31		25		5			180
	2018	49		65		23		24		5			166
	2017	51		64		20		22		6			163
Significant non-cash charges included in earnings (losses) from continuing operations before income taxes:
Stock-based compensation	2019	14		12		7		1		9			43
	2018	13		12		7		1		20			53
	2017	16		15		9		2		9			51

All intersegment sales are eliminated and are not included in the Company’s reportable segments’ net sales.

Net sales to the Company’s largest customer, Walmart Stores, Inc. and its affiliates, were 25%, 26% and 26% of consolidated net sales for each of the fiscal years ended June 30, 2019, 2018 and 2017, respectively, and occurred across all of the Company’s reportable segments. No other customers accounted for 10% or more of the Company’s consolidated net sales in any of these fiscal years.

The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by SBU, for the fiscal years ended June 30:



	2019		2018		2017
Home care	19	%	19	%	19	%
Laundry	9	%	9	%	9	%
Professional products	6	%	6	%	6	%
Cleaning	34	%	34	%	34	%
Bags, wraps, and containers	13	%	14	%	14	%
Charcoal	8	%	9	%	10	%
Cat litter	7	%	7	%	7	%
Digestive health	2	%	2	%	2	%
Household	30	%	32	%	33	%
Food products	9	%	9	%	9	%
Natural personal care	5	%	4	%	4	%
Water filtration	3	%	3	%	3	%
Dietary supplements ⁽¹⁾	3	%	1	%	—	%
Lifestyle	20	%	17	%	16	%
International	16	%	17	%	17	%
Total	100	%	100	%	100	%

(1) The dietary supplements business was acquired in April 2018. See Note 2 for details.

The Company’s products are marketed and sold globally. The following table provides the Company’s global product lines, which were sold in the U.S. (including Professional products SBU) and International, that accounted for 10% or more of consolidated net sales for the fiscal years ended June 30:



	2019		2018		2017
Home Care products	26	%	26	%	25	%
Bags, wraps and containers	16	%	18	%	18	%
Laundry additives	14	%	15	%	15	%
Food products	10	%	10	%	10	%
Charcoal products	9	%	10	%	11	%

Net sales and property, plant and equipment, net, by geographic area as of and for the fiscal years ended June 30 were as follows:



	Fiscal Year	United States		Foreign		Total Company
Net sales	2019	$	5,281	$	933	$	6,214
	2018	5,135		989		6,124
	2017	5,001		972		5,973
Property, plant and equipment, net	2019	929		105		1,034
	2018	887		109		996