Clorox Restating Sales in Accounting Rule Change

Clorox Co., said Wednesday that it will restate sales by about 2% for the last seven quarters to reflect how the company must account now for coupons and other promotions.

Clorox, the nation’s largest household-bleach maker, said in a regulatory filing that it will change its accounting in its fiscal fourth quarter, ending June 30. To make prior periods comparable, sales in the first nine months of fiscal 2001 will be lowered by $64 million to $2.81 billion, the Oakland-based company said in its filing with the Securities and Exchange Commission.

The change won’t affect earnings, Clorox spokeswoman Kathryn Caulfield said.

Sales in the same nine months of fiscal 2000 will be lowered by $63 million to $2.87 billion, the company said. The company hasn’t said how the restatement will affect sales results for the year-ago fourth quarter.

The Financial Accounting Standards Board mandated last year that companies stop including coupons, rebates and free products in their sales. Gillette Co., R.J. Reynolds Tobacco Holdings Inc. and Alberto-Culver Co. have said the new accounting rules will reduce sales.

Previously, companies reported sales that included coupons as a selling expense. Advertising expenses will be reduced as part of the change, Clorox said.

Shares of Clorox, whose other products include Glad bags and Formula 409 cleaner, closed up 94 cents at $34.80 on the New York Stock Exchange.