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Three Months Ended March 31, 2022
Percentage change versus the year-ago period
	Reported (GAAP) Net Sales Growth/ (Decrease)	Reported Volume	Acquisitions & Divestitures	Foreign Exchange Impact	Price Mix and Other (1)	Organic Sales Growth/ (Decrease) (Non-GAAP) (2)	Organic Volume (3)
Health and Wellness	(3)%	1%	—%	—%	(4)%	(3)%	1%
Household	6	2	—	—	4	6	2
Lifestyle	4	6	—	—	(2)	4	6
International	1	2	—	(5)	4	6	2
Total	2%	2%	—%	—%	—%	2%	2%


Nine Months Ended March 31, 2022
Percentage change versus the year-ago period
	Reported (GAAP) Net Sales Growth/ (Decrease)	Reported Volume	Acquisitions & Divestitures	Foreign Exchange Impact	Price Mix and Other (1)	Organic Sales Growth/ (Decrease) (Non-GAAP) (2)	Organic Volume (3)
Health and Wellness	(11)%	(6)%	—%	—%	(5)%	(11)%	(6)%
Household	(1)	(2)	—	—	1	(1)	(2)
Lifestyle	4	4	—	—	—	4	4
International	1	(1)	—	(3)	5	4	(1)
Total	(4)%	(3)%	—%	—%	(1)%	(4)%	(3)%

(1) This represents the net impact on net sales growth/ (decrease) from pricing actions, mix and other factors.
(2) Organic sales growth/ (decrease) is defined as net sales growth/ (decrease) excluding the effect of any acquisitions and divestitures and foreign exchange rate changes. See “Non-GAAP Financial Information” below for reconciliation of organic sales growth/ (decrease) to net sales growth/ (decrease), the most directly comparable GAAP financial information.
(3) Organic volume represents volume excluding the effect of any acquisitions and divestitures.

Management believes that the presentation of organic sales growth / (decrease) is useful to investors because it excludes sales from any acquisitions and divestitures, which results in a comparison of sales only from the businesses that the company was operating throughout the relevant periods, and the impact of foreign exchange rate changes, which are out of the control of the company and management. However, organic sales growth / (decrease) may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded.


	Three Months Ended March 31, 2022
	Percentage change versus the year-ago period
	Health and Wellness	Household	Lifestyle	International	Total
Net sales growth / (decrease) (GAAP)	(3)%	6%	4%	1%	2%
Add: Foreign Exchange	—	—	—	5	—
Add/(Subtract): Divestitures/Acquisitions	—	—	—	—	—
Organic sales growth / (decrease) (non-GAAP)	(3)%	6%	4%	6%	2%


	Nine Months Ended March 31, 2022
	Percentage change versus the year-ago period
	Health and Wellness	Household	Lifestyle	International	Total
Net sales growth / (decrease) (GAAP)	(11)%	(1)%	4%	1%	(4)%
Add: Foreign Exchange	—	—	—	3	—
Add/(Subtract): Divestitures/Acquisitions	—	—	—	—	—
Organic sales growth / (decrease) (non-GAAP)	(11)%	(1)%	4%	4%	(4)%


Driver	Gross Margin Change vs. Prior Year (basis points)
	FY21					FY22
	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3
Cost Savings	+170	+160	+110	+90	+130	+90	+80	+100
Price Changes	+50	+20	+30	+50	+30	+50	+100	+170
Market Movement (commodities)	+40	-50	-170	-290	-130	-550	-510	-410
Manufacturing & Logistics	-300	-420	-360	-490	-400	-470	-640	-570
All other (1,2)	+440	+420	+70	-330	+170	-210	-270	-50
Change vs prior year	+400	+130	-320	-970	-200	-1090	-1240	-760

Gross Margin (%)	48.0%	45.4%	43.5%	37.1%	43.6%	37.1%	33.0%	35.9%


	Q3 Fiscal YTD 2022	Q3 Fiscal YTD 2021
Net cash provided by operations – GAAP	$451	$893
Less: Capital expenditures	$172	$232
Free cash flow – non-GAAP (1)	$279	$661
Free cash flow as a percentage of net sales – non-GAAP (1)	5.3%	11.9%
Net sales	$5,306	$5,539

(1)In accordance with the SEC's Regulation G, this schedule provides the definition of certain non-GAAP measures and the reconciliation to the most closely related GAAP measure. Management uses free cash flow and free cash flow as a percentage of net sales to help assess the cash generation ability of the business and funds available for investing activities, such as acquisitions, investing in the business to drive growth, and financing activities, including debt payments, dividend payments and stock repurchases. Free cash flow does not represent cash available only for discretionary expenditures since the Company has mandatory debt service requirements and other contractual and non-discretionary expenditures. In addition, free cash flow may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read in connection with the company’s consolidated financial statements presented in accordance with GAAP.


	FY 2021						FY 2022

	Q1	Q2	Q3		Q4	FY	Q1		Q2	Q3
	9/30/20	12/31/20	3/31/21		6/30/21	6/30/21	9/30/21		12/31/21	3/31/22
Earnings before income taxes	$526	$332	-$59		$101	$900	$185		$93	$200
Interest income	-$1	-$1	-$1		-$2	-$5	-$1		-$1	-$1
Interest expense	$25	$24	$25		$25	$99	$25		$23	$21
EBIT (1)(3)	$550	$355	-$35		$124	$994	$209		$115	$220
EBIT margin (1)(3)	28.7%	19.3%	-2.0	%	6.9%	13.5%	11.6%		6.8%	12.2%
Saudi JV acquisition gain(4)	-$82	$0	$0		$0	-$82	$0		$0	$0
VMS impairment(5)	$0	$0	$329		$0	$329	$0		$0	$0
Professional Products supplier charge(6)	$0	$0	$0		$28	$28	$0		$0	$0
Digital capabilities and productivity enhancements investment (7)	$0	$0	$0		$0	$0	$12		$15	$15
Adjusted EBIT – non-GAAP(2)(3)	$468	$355	$294		$152	$1,269	$221		$130	$235
Adjusted EBIT margin(2)(3)	24.4%	19.3%	16.5%		8.4%	17.3%	12.2	%	7.7%	13.0%
Net sales	$1,916	$1,842	$1,781		$1,802	$7,341	$1,806		$1,691	$1,809

(2)Adjusted EBIT (a non-GAAP measure) represents earnings before income taxes (a GAAP measure), excluding interest income, interest expense and other significant items that are nonrecurring or unusual, (such as significant losses/(gains) related to acquisitions, impairment charges and other nonrecurring or unusual items as reported above). Adjusted EBIT margin is the ratio of adjusted EBIT to net sales.

(3)In accordance with the SEC's Regulation G, this schedule provides the definition of certain non-GAAP measures and the reconciliation to the most closely related GAAP measure. Management believes the presentation of EBIT, EBIT margin, adjusted EBIT and adjusted EBIT margin provides useful additional information to investors about trends in the company's operations and is useful for period-over-period comparisons. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP financial measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read in connection with the company’s consolidated financial statements presented in accordance with GAAP.

(4)On July 9, 2020, the company increased its investment in each of the two entities comprising its joint venture in the Kingdom of Saudi Arabia (Saudi joint venture). As a result of this transaction, a noncash nonrecurring net gain was recognized of $82 ($76 after tax) in Other (income) expense, net in the quarter ended September 30, 2020, primarily due to the remeasurement of the carrying value of the company’s previously held equity investment to fair value.

(7)Reflects the operating expenses incurred by the company related to its digital capabilities and productivity enhancements investment. The majority of these expenses relate to external consulting fees. The remaining expenses relate to internal IT project management and supporting personnel costs and other costs. Refer to the Non-GAAP Financial Information within the third quarter of fiscal year 2022 earnings release for further discussion.


(Dollars in millions except per share data)
	Diluted Earnings per Share
	Three Months Ended March 31
	2022		2021		% Change

As reported (GAAP)	$	1.21	$	(0.49)	347%
Digital capabilities and productivity enhancements investment(1)	$	0.10	$	—
VMS impairment (2)(3)	$	—	$	2.11
As adjusted (Non-GAAP)(6)(7)	$	1.31	$	1.62	(19)%

	Diluted Earnings per Share
	Nine Months Ended March 31
	2022		2021		% Change

As reported (GAAP)	$	2.91	$	4.78	(39)%
Digital capabilities and productivity enhancements investment(1)	$	0.26	$	—
VMS impairment (2)	$	—	$	2.10
Saudi JV acquisition gain(4)	$	—	$	(0.60)
As adjusted (Non-GAAP)(6)(7)	$	3.17	$	6.28	(50)%

	Full Year 2022 Outlook (Estimated Range)
	Diluted Earnings Per Share
	Low		High

As estimated (GAAP)	$	3.60	$	3.85
Digital capabilities and productivity enhancements investment(5)	$	0.45	$	0.45
As adjusted (Non-GAAP)(6)(7)	$	4.05	$	4.30

(1)During the three and nine ended March 31, 2022, the company incurred approximately $15 ($11 after tax) and $42 ($32 after tax), respectively, of operating expenses related to its digital capabilities and productivity enhancements investment. Refer to the Non-GAAP Financial Information within the third quarter of fiscal year 2022 earnings release for further discussion.

(3)The three months ended March 31, 2021 includes the dilution impact of the difference between the diluted weighted-average shares used in calculating the diluted (losses) per share, as reported to the diluted weighted-average shares used in calculating the non-GAAP diluted earnings per share, as adjusted (127,108 shares).

(7)Adjusted EPS is supplemental information that management uses to help evaluate the company's historical and prospective financial performance. Management believes that by adjusting for certain nonrecurring or unusual items, such as significant losses/(gains) related to acquisitions, impairment charges and other nonrecurring or unusual items, investors and management are able to gain additional insight into the company's underlying operating performance on a consistent basis over time. However, adjusted EPS may not be the same as similar measures provided by other companies due to potential differences in methods of calculation or differences in which items are incorporated into these adjustments.