Business Context and Reporting Period
Company: The Clorox Company
Filing Type: Form 8-K (Current Report)
Date of Report: October 3, 2006
Event: Entry into a Material Definitive Agreement
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It discloses a specific contractual commitment:
- Agreement Value: Approximately $260 million
- Counterparty: Hewlett-Packard Company (HP)
- Term: Seven years
- Scope: Information technology services and related services
Material Changes
The filing reports the execution of a new seven-year IT services agreement. No financial performance changes versus prior periods are disclosed in this document.
Outlook, Risks, and Contingencies
- Termination Obligations: The agreement may be terminated or extended under specified conditions. Under certain circumstances, the Company is obligated to pay a fee upon termination.
- Documentation: The full agreement is scheduled to be filed as an exhibit to the Form 10-Q for the quarter ending December 31, 2006.
Investor Verification Checklist
- Verify the specific termination fee structure and conditions in the full agreement exhibit.
- Review the upcoming Form 10-Q (Q3 2006) for the complete text of the IT Services Agreement.
- Assess the impact of the $260 million commitment on future operating cash flows and IT capital expenditure budgets.