Business Context and Reporting Period
Company: The Clorox Company
Filing Type: Form 8-K (Current Report)
Date of Report: November 22, 2010
Event Date: November 5, 2010 (Completion of sale)
The Company completed the sale of substantially all of its global auto care businesses (the "Auto Businesses") to Viking Acquisition Inc., an affiliate of Avista Capital Holdings, L.P. The Auto Businesses included brands such as Armor All, STP, Oomph!, Son of a Gun, Tuff Stuff, and Car Buddy.
Key Financial Metrics
This filing serves as a disclosure of the transaction and the reclassification of financial results. It does not contain specific revenue, profit, cash flow, margin, debt, or liquidity figures within the text body.
- Accounting Treatment: Beginning in the fiscal quarter ended September 30, 2010, the financial results of the Auto Businesses are included in discontinued operations.
- Data Availability: Unaudited Quarterly and Fiscal Year 2010 condensed consolidated data (both as reported and as adjusted) are provided in Exhibit 99.1, which is attached to the filing but not included in the text provided.
Material Changes
The primary material change is the divestiture of the Auto Businesses and the subsequent reclassification of historical results for these businesses into discontinued operations. This change affects the comparability of financial results for the fiscal quarter ended September 30, 2010, and the full fiscal year 2010.
Guidance, Outlook, and Risks
The filing does not contain updated financial guidance, management commentary on future outlook, or specific risk factors beyond the disclosure of the completed sale. The document focuses on compliance with Regulation FD regarding the disclosure of the transaction details and the availability of adjusted financial schedules.
Investor Verification Checklist
- Review Exhibit 99.1 to obtain the specific unaudited quarterly and fiscal year 2010 condensed consolidated data on an as-adjusted basis.
- Verify the impact of the discontinued operations classification on year-over-year revenue and earnings comparisons.
- Confirm the final purchase price and any earn-out provisions in the Purchase and Sale Agreement dated September 21, 2010, if not detailed in the attached exhibit.