EX-99.3 9 f31205exv99w3.htm EXHIBIT 99.3 exv99w3
 

Exhibit 99.3
 
THE CLOROX COMPANY
 
RETURN ON INVESTED CAPITAL
 
                                         
Dollars in millions   FY07     FY06     FY05     FY04     FY03  
 
Gross profit
  $ 2,091     $ 1,959     $ 1,895     $ 1,831     $ 1,815  
Selling and administrative expenses
    642       631       551       543       523  
Advertising costs
    474       450       435       420       446  
Research and development costs
    108       99       88       84       75  
                                         
Adjusted operating profit
    867       779       821       784       771  
Other charges added back to adjusted operating profit(1)
    23       9       15       8       4  
                                         
Subtotal
    890       788       836       792       775  
                                         
After tax
    595       529       543       516       508  
Average invested capital(2)
    4,037       3,965       3,898       3,819       3,658  
Return on invested capital
    14.7 %     13.3 %     13.9 %     13.5 %     13.9 %
change versus prior year
    +140 bps       -60 bps       +40 bps       -40 bps       +140 bps  
 
 
(1) Other charges added to adjusted operating profit relate primarily to amortization expense and other smaller items included in gross profit. In addition, the current year included IT transition cost included in selling and administrative expenses.
 
(2) Average invested capital includes total assets less current liabilities (excluding short-term debt) adjusted to add back cumulative historical goodwill amortization, impairment and other charges since fiscal year 1989.