This excerpt taken from the CLX 8-K filed Mar 3, 2005.
13. Stockholders Equity
The Company has two share repurchase programs, consisting of an open-market program and a program to offset the impact of share dilution related to the exercise of stock options (evergreen program). Under the open-market program, the Companys Board of Directors authorized an additional $700 in share repurchases during fiscal year 2004, bringing the total authorization for that program from $1.0 billion to $1.7 billion.
Treasury share repurchases were $220 (5 million shares) in fiscal year 2004, $486 (12 million shares) in fiscal year 2003 and $412 (10 million shares) in fiscal year 2002. Of the 5 million shares repurchased in fiscal year 2004, 1.5 million shares were acquired from Henkel at a total cost of $65.
Treasury share repurchases in fiscal year 2004 were made under both the Companys open-market and evergreen programs. Treasury shares repurchased during fiscal year 2004 under the Companys open-market program were $159 (4 million shares). The total number of shares repurchased as of June 30, 2004 under the open-market program was 22 million at a cost of $932, leaving $768 of authorized repurchases remaining under that program. The remainder of shares repurchased in fiscal year 2004 were allocated to the evergreen program.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. Stockholders Equity (Continued)
At June 30, 2001, the Company had share repurchase agreements totaling approximately $246, whereby the Company contracted for future delivery of 2.3 million shares at a strike price of $43 per share on September 15, 2002 and on September 15, 2004, and for future delivery of 1 million shares on November 1, 2003 at a strike price of $51.70 per share. The Company applied the equity treatment of accounting to the share repurchase agreements, which allows for classification of such agreements as treasury shares. All share repurchase contracts were settled as of June 30, 2002, including the settlement and delivery of 5.5 million shares for $257 in fiscal year 2002 and the settlement and receipt of net cash proceeds of $76 in fiscal year 2000.
Accumulated other comprehensive net losses at June 30, 2004, 2003, and 2002 included net of tax translation adjustments of $267, $270, and $237 respectively; net of tax estimated fair value of derivative contracts of $1, ($3) and ($9) respectively, and minimum pension liability adjustments of $6 (net of tax), $72 (net of tax) and $68, respectively.