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The information below reclassifies the operating results of the businesses exchanged with Henkel in November 2004 as
discontinued operations. Based on accounting principles generally accepted in the United States of America, Clorox's equity
earnings in Henkel Iberica continue to be reflected as a component of continuing operations. Audited historical financial
statements reflecting the businesses transferred to Henkel as discontinued operations will be provided when available.


                                                    The Clorox Company
                                Unaudited Condensed Consolidated Statements of Earnings
                                    (In millions, except share and per-share amounts)

                                                                               Three Months Ended 12/31/2003

                                                                                          Adjustments for
                                                                                           Discontinued
                                                                         As Reported        Operations      As Adjusted

Net sales                                                                       $947                $(27)         $920
Cost of products sold                                                            535                  (8)          527

Gross profit                                                                     412                 (19)          393

Selling and administrative expenses                                              129                  (2)          127
Advertising costs                                                                 88                  (1)           87
Research and development costs                                                    20                    -           20
Restructuring and asset impairment costs                                           -                    -            -
Interest expense                                                                   7                    -            7
Other income:
  Equity investment in Henkel Iberica, S.A.                                       (2)                   -           (2)
  Other, net                                                                        -                   -             -

Earnings from continuing operations before income taxes                          170                 (16)          154
Income taxes on continuing operations                                             59                  (6)           53

Earnings from continuing operations                                              111                 (10)          101

Discontinued operations:
  Earnings from exchanged businesses                                                -                 16            16
  Losses from Brazil operations                                                   (3)                   -           (3)
  Income taxes benefit (expense) on discontinued operations                         1                 (6)           (5)

Earnings (losses) from discontinued operations                                    (2)                 10              8

Net earnings                                                                    $109                   $-         $109



Earnings (losses) per common share:
 Basic
   Continuing operations                                                       $0.53              $(0.05)         $0.48
   Discontinued operations                                                     (0.01)                0.05          0.04

   Basic net earnings per common share                                         $0.52                   $-         $0.52



  Diluted
    Continuing operations                                                      $0.52              $(0.05)         $0.47
    Discontinued operations                                                    (0.01)                0.05          0.04

   Diluted net earnings per common share                                       $0.51                   $-         $0.51

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fy04_q2_henkel

  • 1. The information below reclassifies the operating results of the businesses exchanged with Henkel in November 2004 as discontinued operations. Based on accounting principles generally accepted in the United States of America, Clorox's equity earnings in Henkel Iberica continue to be reflected as a component of continuing operations. Audited historical financial statements reflecting the businesses transferred to Henkel as discontinued operations will be provided when available. The Clorox Company Unaudited Condensed Consolidated Statements of Earnings (In millions, except share and per-share amounts) Three Months Ended 12/31/2003 Adjustments for Discontinued As Reported Operations As Adjusted Net sales $947 $(27) $920 Cost of products sold 535 (8) 527 Gross profit 412 (19) 393 Selling and administrative expenses 129 (2) 127 Advertising costs 88 (1) 87 Research and development costs 20 - 20 Restructuring and asset impairment costs - - - Interest expense 7 - 7 Other income: Equity investment in Henkel Iberica, S.A. (2) - (2) Other, net - - - Earnings from continuing operations before income taxes 170 (16) 154 Income taxes on continuing operations 59 (6) 53 Earnings from continuing operations 111 (10) 101 Discontinued operations: Earnings from exchanged businesses - 16 16 Losses from Brazil operations (3) - (3) Income taxes benefit (expense) on discontinued operations 1 (6) (5) Earnings (losses) from discontinued operations (2) 10 8 Net earnings $109 $- $109 Earnings (losses) per common share: Basic Continuing operations $0.53 $(0.05) $0.48 Discontinued operations (0.01) 0.05 0.04 Basic net earnings per common share $0.52 $- $0.52 Diluted Continuing operations $0.52 $(0.05) $0.47 Discontinued operations (0.01) 0.05 0.04 Diluted net earnings per common share $0.51 $- $0.51