Business Context and Reporting Period
Company: The Clorox Company
Filing Type: Form 8-K (Current Report)
Date of Report: May 13, 2013
Event: Update to share repurchase authorization.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. It focuses exclusively on capital allocation regarding share repurchases.
- Previous Repurchase Authorization: $821 million (aggregate of prior programs).
- New Repurchase Authorization: $750 million.
- Net Change in Authorization: Reduction of $71 million in total available repurchase capacity.
Material Changes
On May 13, 2013, the Board of Directors terminated the share repurchase authorizations previously announced on May 13, 2008, and May 18, 2011. These were replaced by a single updated program authorizing up to $750 million in aggregate purchases. This action reduces the total dollar value of shares the Company could repurchase under its open market program from $821 million to $750 million.
Guidance, Outlook, and Management Commentary
Repurchase Program Details:
- Repurchases may occur from time to time depending on market conditions.
- The Company has no obligation to repurchase shares under this authorization.
- The actual number and value of shares repurchased will depend on factors including share price.
This $750 million open market program is in addition to the Company's previously announced "evergreen" repurchase program, which is designed to reduce or eliminate dilution from stock incentive plan issuances.
Risks and Contingencies:The filing notes that the actual execution of repurchases is contingent on market conditions and share price, with no guaranteed volume or timing.
Investor Verification Checklist
- Verify the exact date the $750 million authorization became effective (May 13, 2013).
- Confirm the status of the separate "evergreen" program intended to offset dilution from stock incentive plans.
- Monitor future 8-K filings or quarterly reports for actual share repurchase activity under the new $750 million limit.
- Review the Company's most recent 10-Q or 10-K for comprehensive financial metrics (revenue, cash flow, debt) not included in this specific 8-K.