CLOROX CO /DE/ (CLX) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that CLOROX CO /DE/ surfaced in its latest filing.

• Ongoing joint review of the United States-Mexico-Canada Agreement (USMCA), which could result in modifications, annual reviews, or termination, affecting cross-border trade, sourcing, and supply chain arrangements across North America.
• Conflicts in Ukraine and the Middle East affecting global energy markets and key shipping routes, with indirect impacts including increases in raw material and commodity costs, supply chain and logistics challenges, and sanctions and export controls imposed or that may be imposed.
• Rising tensions between China and Taiwan.
• Completed replacement of its ERP system in January 2026, with subsequent system inefficiencies, integration challenges, delays in business processes, data quality issues, and operational disruptions.January 2026
• Completed acquisition of GOJO (now operating as Clorox Purell) on April 1, 2026, expanding presence in health, hygiene, and B2B channels, including healthcare and institutional markets.April 1, 2026
• Glad business joint venture with P&G expired on January 31, 2026, and the Company purchased P&G’s 20% interest, resulting in 100% ownership, with payment of $476 million in cash on March 2, 2026.March 2, 2026
• Sold its Argentina business in March 2024 and its Better Health VMS business in September 2024, recording a loss for each sale.March 2024 and September 2024
• CEO and Chair Linda Rendle announced her planned resignation in May 2026, and the Board has initiated a search for a successor.May 2026
• Cyberattack experienced in August 2023.August 2023
• Recorded liability of $28 million as of June 30, 2026 for future remediation costs related to certain environmental matters, with two matters in Alameda County, California and Dickinson County, Michigan accounting for a significant portion.June 30, 2026
• Approximately $5.1 billion of debt as of June 30, 2026, with the GOJO acquisition of approximately $2.15 billion primarily debt-financed; S&P Global Ratings downgraded long-term credit rating to BBB from BBB+ in February 2026.February 2026
• U.S. tax legislation, the One Big Beautiful Bill Act, introduced provisions applicable to U.S. corporate taxpayers.
• OECD's Global Anti-Base Erosion (GloBE) rules (Pillar Two) adopted or being implemented in multiple jurisdictions.
• Net sales to Walmart Stores, Inc. and its affiliates were 26%, 27%, and 25% of consolidated net sales for fiscal years ended June 30, 2026, 2025, and 2024, respectively, with the five largest customers accounting for about half of consolidated net sales.
• 84% of net sales in fiscal year 2026 attributable to U.S. markets, with 16% to international markets.2026
• Recorded liability of $27 million as of June 30, 2025 for future remediation costs related to certain environmental matters.June 30, 2025