Item 1. Business
ITEM 1 – BUSINESS
O VERVIEW O F B USINESS
Except as otherwise indicated herein or as the context otherwise requires, references to “Oil-Dri,” the “Company,” “we,” “us” or “our” refer to Oil-Dri Corporation of America and its subsidiaries.
Oil-Dri is a leader in developing, manufacturing and/or marketing sorbent products. Our sorbent products are principally produced from hydrated aluminosilicate minerals, primarily consisting of calcium bentonite, attapulgite and diatomaceous shale, which we refer to collectively as our “clay,” our “minerals,” or “Fuller's Earth.” We surface mine our clay on leased or owned land near our manufacturing facilities in Mississippi, Georgia, Illinois and California. We produce both absorbent and adsorbent products from our clay. Absorbents, like sponges, draw liquids up into their many pores. Examples of our absorbent clay products are Cat’s Pride and Jonny Cat branded premium cat litter, as well as other private label cat litters. Additional examples are our Oil-Dri branded floor absorbents, Amlan branded animal health and nutrition solutions for livestock, and Agsorb and Verge agricultural chemical carriers. Adsorbent products attract impurities in liquids, such as metals and surfactants, and form low-level chemical bonds. Examples of our adsorbent products include Ultra-Clear, Pure-Flo, Supreme, Perform, Select, Metal-X and Metal-Z which act as purification mediums for edible and non-edible oils. We also sell nonclay-based products, such as our Oil-Dri synthetic sorbents used for automotive, industrial and marine cleanup, silica gel-based crystal cat litter, and plastic cat litter box liners. Our principal products are described in more detail below.
Oil-Dri Corporation of America was incorporated in Delaware in 1969 as the successor to an Illinois corporation incorporated in 1946 (which was the successor to a partnership that commenced business in 1941). For additional information on recent business developments, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Part II, Item 7, incorporated herein by reference.
O PERATING S EGMENTS
We have two reportable operating segments for financial reporting derived from the different characteristics of our two major customer groups: the Retail and Wholesale Products Group and the Business to Business Products Group. The Retail and Wholesale Products Group customers include mass merchandisers, the farm & fleet channel, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, online retailers, co-packaged products customers, distributors of industrial cleanup and automotive products, environmental service companies and users of sports field products and sports turf materials. The Business to Business Products Group customers include processors and refiners of edible oils, renewable diesel, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; and distributors of animal health and nutrition products. Certain financial information on both segments is contained in Note 3 of the Notes to the Consolidated Financial Statements and is incorporated herein by reference.
P RINCIPAL P RODUCTS B Y O PERATING S EGMENT
Retail and Wholesale Products Group
Cat Litter
We manufacture clay-based cat litter and supply crystal cat litter products. Both are designed for absorbency and odor control. Our clay-based offerings include scoopable and coarse non-clumping litters. Scoopable litters clump when exposed to moisture, allowing consumers to remove and dispose of only the used portion. These products are further differentiated into lightweight and heavyweight varieties, with lightweight scoopable litters providing strong performance along with the added convenience of easier carrying and pouring. Our crystal cat litter is made from synthetic silica-gel granules and, like lightweight clay-based litter, offers a lightweight format with superior odor control. Our crystal litter is 99.9% dust-free and provides long-lasting performance with minimal maintenance. We sell our cat litter products domestically and internationally through e-commerce platforms and brick-and-mortar retail stores.
Branded products . Our scoopable and non-clumping clay-based litters are sold under our Cat’s Pride and Jonny Cat brand names. Our Cat's Pride litters created the lightweight segment of the scoopable litter market. Our Cat’s Pride Antibacterial Clumping Litter was the first and is the only Environmental Protection Agency (“EPA”) approved antibacterial cat litter in the United States. In addition, we offer our non-clumping litter in a pre-packaged, disposable tray under the Cat’s Pride KatKit brand. Our crystal cat litters are sold under our Cat's Pride, Ultra and Litter Pearls brand names. Moreover, we offer litter box liners under the Cat's Pride and Jonny Cat product lines. These products are sold through independent food
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brokers and by our sales force to major grocery, drug, dollar store, mass-merchandiser, farm & fleet, and pet outlets, as well as through online retailers.
Private label products. We produce private label scoopable and non-clumping clay-based cat litters as well as crystal cat litter.
Co-packaged products. We have long-term supply agreements with A&M Products Manufacturing Company, a subsidiary of The Clorox Company ("Clorox"), under which we manufacture certain branded cat litter products. Under these agreements, we are responsible for manufacturing finished goods of certain Fresh Step cat litter products based on market demand.
Industrial and Automotive
We manufacture and market clay-based, polypropylene and recycled absorbent products used to absorb oil, water, chemicals and other liquids across industrial, automotive, marine, environmental, and residential applications. Our product portfolio includes floor absorbents, spill containment products, pads, rolls, socks, booms and spill kits sold under branded and private-label offerings. These products are distributed through industrial, automotive, safety, janitorial, chemical, and paper distributors as well as through retailers and e-commerce channels in domestic and international markets.
Sports
We manufacture and market Pro's Choice branded and private label sports field products used in the construction, maintenance, and improvement of natural turf athletic fields. Our product offerings include infield conditioners, soil conditioners, packing clays, and drying agents that enhance drainage, field performance, and playability. These products serve professional, collegiate, high school, and municipal sports facilities and are sold through multiple distribution channels.
Business to Business Products Group
Fluids Purification
We produce an array of adsorbent products for bleaching, purification and filtration applications that are used around the world by edible oil processors, as well as by refiners of renewable diesel, jet fuel, including sustainable aviation fuel, and other petroleum-based products. Bleaching clays are used by edible oil processors to adsorb soluble contaminants that promote oxidation problems. Our Pure-Flo and Perform bleaching clays remove impurities, such as trace metals, chlorophyll and color bodies, in various types of edible oils. Perform products provide increased activity for hard-to-bleach oils. Our Select adsorbents are used in a pre-treatment process to remove metals and trace soap in vegetable oil processing. Our Select adsorbents can also be used to pre-treat oil in the processing of biodiesel. Metal-X and Metal-Z are highly efficient adsorbents for the renewable diesel and sustainable aviation fuel markets. Our Ultra-Clear product is used as a purification and filtration medium for jet fuel and other petroleum-based products. These products are sold in the United States and in international markets by our team of technical sales employees, distributors and sales agents.
Agricultural and Horticultural
We manufacture granules and powders that enhance agricultural and horticultural products. Our mineral-based absorbents serve as carriers for biological and chemical active ingredients, drying agents, and growing media. Our brands include: Agsorb, an agricultural and horticultural carrier and drying agent; Verge, an engineered carrier and drying granule; and Flo-Fre, a highly absorbent microgranule designed to improve flowability.
Agsorb and Verge carriers support lawn and garden and row crop products that serve as alternatives to liquid sprays. Their mineral granules absorb active ingredients and deliver them directly into or onto the soil, enabling more targeted application. Verge carriers are spherical, uniformly sized granules with very low dust. Agsorb drying agents are blended into fertilizer-pesticide formulations to absorb moisture and improve flowability. Flo-Fre microgranules are used by grain processors and other bulk handlers to absorb excess moisture and prevent caking. These products are sold primarily in the United States through our technical sales force.
Animal Health and Nutrition
We produce, or use contract processors to produce, Amlan brand name and private label products that support good health and productivity of species in livestock industries. For example, our products, including our Calibrin, Varium and
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NeoPrime products in our international markets, and Sorbiam, Ambio P and Ambio S products sold to customers in North America, provide a number of solutions for swine, poultry and dairy cattle livestock production. In addition, our MD-09 moisture manager product is a feed additive for the reduction of wet droppings in poultry and our Pel-Unite and Pel-Unite Plus products are specialized animal feed pellet binders.
Our animal health and nutrition products are sold both directly and through a network of distributors to livestock producers, feed mill operators, nutritionists and veterinarians in the United States, Latin America, Mexico, Asia and Africa. The sales force for our subsidiaries located in China, Mexico and Indonesia also sell these products, as further described in Foreign Operations below.
F OREIGN O PERATIONS
Our foreign operations located in Canada and the Netherlands are included in the Retail and Wholesale Products Group, while operations in the United Kingdom, China, Switzerland, Mexico and Indonesia are included in the Business to Business Products Group.
Our wholly-owned subsidiary, Oil-Dri Canada ULC, located in Canada, is a manufacturer, distributor and marketer of branded and private label cat litter in the Canadian marketplace. Among its leading brands are Saular, Cat’s Pride and Jonny Cat. Our Canadian business also manufactures or purchases and sells industrial granule floor absorbents, synthetic polypropylene sorbent materials and agricultural chemical carriers.
Our wholly-owned subsidiary, MBA Pet BV, located in the Netherlands, which was acquired on May 1, 2024 as part of the acquisition of Ultra Pet Company, Inc. ("Ultra Pet"), is a distributor of silica gel-based cat litter to the Europe region.
Our wholly-owned subsidiary, Oil-Dri (U.K.) Limited, located in the United Kingdom, is a manufacturer, distributor and marketer of bleaching earth, industrial floor absorbents and cat litter. These products are marketed in the United Kingdom and Western Europe. Oil-Dri (U.K.) Limited also sells synthetic polypropylene sorbent materials and plastic containment products.
Our wholly-owned subsidiaries, Amlan Trading (Shenzhen) Company, Ltd., located in China, and PT Amlan Perdagangan Internasional, located in Indonesia, are dedicated to our animal health business.
Our wholly-owned subsidiary, Oil-Dri SARL, located in Switzerland, performs various management, customer service and administrative functions for some of the international customers of our domestic operations.
Our wholly-owned subsidiary, Agromex Importaciones, S.A de C.V, located in Mexico, sells our international animal health and nutrition products.
Our foreign operations are subject to the normal risks of doing business in non-U.S. countries, such as currency fluctuations, restrictions on the transfer of funds and import/export duties; however, historically our operating results have not been materially impacted by these factors. Incorporated herein by reference are Item 1A "Risk Factors," which describes other risks that could impact our foreign operations, and Note 3 of the Notes to the Consolidated Financial Statements, which contains certain financial information about our foreign operations.
C USTOMERS
Walmart Inc. (“Walmart”) is a customer in our Retail and Wholesale Products Group with whom we have a long-term relationship. Sales to Walmart and its affiliates accounted for approximately 18% and 19% of our total net sales for fiscal years 2026 and 2025, respectively. Sales to Walmart are comprised of a variety of products including but not limited to, multiple scoopable, coarse, and crystal cat litter items and accessories. There are no customers in the Business to Business Products Group with sales equal to or greater than 10% of our total sales. The degree of margin contribution of our significant customers in the Business to Business Products Group varies, with certain customers having a greater effect on our operating results . The loss of any customer other than those described in this paragraph would not be expected to have a material adverse effect on our business.
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C OMPETITION
Product performance, price, brand recognition, customer service, technical support, and distribution resources are the principal methods of competition in our markets and competition historically has been very vigorous. Advertising, promotion, merchandising and packaging also have a significant impact on retail consumer purchasing decisions, which primarily affects our Retail and Wholesale Products Group. Most of the principal competitors for our Retail and Wholesale Products Group have established brands as well as substantially greater financial resources or market presence than we do. These competitors may be able to spend more aggressively on advertising and promotional activities, introduce competing products more quickly and respond more effectively to changing business and economic conditions than us.
We have six principal competitors in our Retail and Wholesale Products Group, one of which is also our customer. Two of the principal competitors relate to our Industrial and Sports products while the other four relate to our cat litter products. The overwhelming majority of all cat litter is mineral based, including both scoopable and coarse non-clumping litter. Through our acquisition of Ultra Pet, we have expanded our footprint into the silica gel-based cat litter market, which is a growing cat litter market. Cat litters based on other alternatives, such as paper and various agricultural waste products, have niche positions. Scoopable products have a majority of the cat litter market share followed by coarse non-clumping litters.
There is significant competition to attract cat litter consumers across multi-outlet channels, including grocery, mass-merchandiser, dollar, pet and drug stores, as well as through online retailers. Competition for the scoopable litter market continues to be impacted by new product offerings and increased advertising and promotions by our competitors and by us. We provide our customers with product innovation, a nation-wide distribution network and strong customer service. Our exceptional sales and research and development teams, as well as our being vertically integrated, give us a further advantage over smaller and regional manufacturers. We also continue to expand our customer offerings, as evidenced by our recent entrance into the crystal cat litter market.
We currently have ten principal competitors in our Business to Business Products Group compared to nine reported in the prior year. This is due to a reassessment of principal competitors as a result of a competitor's increased product offerings. Our bleaching clay and fluids purification products are sold in a highly cost competitive global marketplace. The demand for these products has grown in recent years due to the use of our products in the filtration of renewable diesel. Performance is a primary competitive factor for these products. The animal health portion of this segment also operates in a global marketplace with price and performance competition from multi-national and local competitors. Competition for our crop protection products is primarily based on price, but competitor differentiation also exists in the ability to meet customer product specifications and enhancements in engineered granule technologies.
R ESEARCH AND D EVELOPMENT
We develop new products and applications and improve existing products at our research and development ("R&D") facilities in Vernon Hills, Illinois, which are comprised of the Nick Jaffee Center for Innovation (the "Innovation Center") and the Richard M. Jaffee Laboratory for Applied Microbiology the "Microbiology Lab"). The Innovation Center includes a pilot plant that simulates the production processes of our customers and our manufacturing plants. The Microbiology Lab is dedicated primarily to the development of our animal health products while also supporting growth of our agriculture and horticulture and cat litter products. Our R&D team has experience in disciplines such as biology, microbiology, chemistry, physics, engineering, mathematics, geological and earth science, material science, geochemistry, physical catalysis, animal nutrition, and the animal sciences. The R&D team collaborates with manufacturing teams at all Oil-Dri plants as well as with our commercial teams. In the past several years, our research efforts and partnerships have resulted in several new sorbent products and processes. The R&D team produces prototype samples and tests new products for customer trial and evaluation across all Oil-Dri businesses. No significant R&D was customer sponsored, and all R&D costs are expensed in the period in which incurred. See Note 1 of the Notes to the Consolidated Financial Statements for further information about R&D expenses.
S EASONALITY
We consider our business, taken as a whole, to be moderately seasonal; however, business activities of certain customers, such as agricultural chemical manufacturers and edible oil producers, are subject to such seasonal factors as crop acreage planted, product formulation cycles and weather conditions. Additionally, demand for our sports products fluctuates depending on the time of year that certain sports, including baseball, softball, football, cricket, and soccer are played.
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R ESOURCES
Patents
We have obtained or applied for patents for certain of our processes and products sold to customers in both the Retail and Wholesale Products Group and the Business to Business Products Group. U.S. patents are currently granted for a term of 20 years from the date the patent application is filed, and our U.S. patents generally have durations of 15-20 years. The durations of patents issued outside of the United States vary from country to country, and generally have durations of 10-15 years. Our patents, particularly our U.S. patents, are highly important to our business and we assert our patent rights and vigorously protect our patents from apparent infringement where appropriate, although no single patent is considered material to the business as a whole. The risks associated with our patents (and intellectual property, generally), are discussed in Item 1A "Risk Factors."
Reserves
We mine our clay on leased or owned land near our manufacturing facilities in Mississippi, Georgia, Illinois and California, and we also have reserves in Nevada and Tennessee. We estimate that our proven mineral reserves as of July 31, 2026, were approximately 98.9 million tons in aggregate and our probable mineral reserves were approximately 129.6 million tons in aggregate, for a total of 228.5 million tons of mineral reserves. Based on our rate of consumption during fiscal year 2026, and without regard to any of our reserves in Nevada or Tennessee, we consider our proven and probable reserves adequate to supply our needs for over forty years. Although we consider these reserves to be extremely valuable to our business, we do not believe they have inherent value and only become valuable through the mining and manufacturing methods as further described in Item 2 "Properties".
It is our policy to attempt to maintain a minimum of forty years of proven and probable reserves of each type of clay at each location. We have an ongoing program of exploration for additional reserves, but we cannot provide assurance that additional reserves will continue to become available. Our use of these reserves, and our ability to explore for additional reserves, are subject to compliance with existing and future federal and state statutes and regulations regarding mining and environmental compliance. During fiscal year 2026, we utilized these reserves to produce substantially all of the sorbent products that we sold.
Proven reserves are those reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; grade and/or quality are computed from results of detailed sampling, and (b) the sites for inspection, sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well established. Probable reserves are computed from information similar to that used for proven reserves, but the sites for inspection, sampling and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation. We use certified professional geologists and mineral specialists who estimate and evaluate existing and potential reserves in terms of quality, quantity and availability.
Mining Operations
We have continuously conducted mining operations in Ripley, Mississippi since 1963, in Ochlocknee, Georgia since 1968, in Blue Mountain, Mississippi since 1989, in Mounds, Illinois since 1998 and in Taft, California since 2002. Our clay is surface mined on a year-round basis, using large earth moving scrapers, bulldozers, or excavators and off-road trucks to strip off overburden (non-usable material atop desired clay). The desired clay is then loaded into dump trucks and transported to the processing facilities. The stripping, mining and hauling of our clay is performed in-house as well as by independent contractors. Our current operating mines range in distance from immediately adjacent to approximately eleven miles from the related processing plants. Processing facilities are generally accessed from the mining areas by private and public roads and in some instances by public highways. Each of our processing facilities maintains inventories of unprocessed clay for approximately one week of production requirements. All material permits have either been obtained by us, or approval is expected to be received in the normal course of business. See Item 2 “Properties” below for additional information regarding our mining properties and operations.
The following schedule summarizes the net book value of land, mining assets and other plant and equipment for each of our manufacturing facilities as of July 31, 2026 (in thousands). Of the mining assets, $0.8 million relates to mineral rights. Mineral rights as of July 31, 2026, were $0.3 million and $0.5 million for our properties in Illinois and California, respectively.
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Land
Mining Assets, Net
Plant and
Equipment, Net
Taft, California $ 384 $ 899 $ 14,137
Ochlocknee, Georgia $ 8,183 $ 4,132 $ 48,650
Mounds, Illinois $ 321 $ 922 $ 19,548
Blue Mountain, Mississippi $ 1,243 $ 81 $ 21,334
Ripley, Mississippi $ 1,855 $ 824 $ 24,475
Energy
We primarily use natural gas in the processing kilns to dry our clay products. We monitor gas market trends, and we may contract for a portion of our anticipated fuel needs using forward purchase contracts to mitigate the volatility of our kiln fuel prices.
H UMAN CAPITAL MANAGEMENT
Overview
As part of our efforts to drive continued growth and profitability, we are keenly focused on building an organization that attracts and retains top talent and develops the skills needed to differentiate our business. As of July 31, 2026, we had approximately 927 employees globally, who we refer to as our teammates, including 892 based in the U.S and 35 located internationally. We believe our corporate offices, research and development center and manufacturing facilities are currently adequately staffed, although there is no guarantee that this will always be possible. Approximately 65 of our U.S. teammates and 12 of our Canadian teammates are represented by labor unions under separate collective bargaining agreements. We consider our relations with union-represented teammates to be satisfactory.
Culture
Oil-Dri’s culture and values, along with its teammates, are our most valuable assets. We take pride in fostering a culture grounded in strong moral and ethical standards, honesty, integrity and a passion for excellence. Our approach emphasizes collaboration, communication, transparency, and an open, accessible corporate structure. We expect all teammates to conduct business ethically and fairly using our “WE CARE” values framework.
Oil-Dri's culture and business objectives are based on our “WE CARE” values, which serve as the foundation for how we conduct business and engage with our teammates, customers, vendors and other stakeholders. We reinforce these values through leadership, training, in-person collaboration, and recognition of positive behaviors. They are embedded into our Code of Ethics and Business Conduct, formal policies and procedures, workplace harassment training, governance structure, and teammate recognition process.
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Our Code of Ethics and Business Conduct outlines how we uphold these standards. The first “E” in "WE CARE" represents Ethics. Oil-Dri’s ethical culture is one of our greatest strengths and a key focus of our Board of Directors ("Board") and management team. Our Chief Executive Officer ("CEO") has been asked to speak on this topic at local business schools, including the Kellogg School of Management at Northwestern and Marquette University. Our CEO regularly communicates expectations related to ethics, integrity, and compliance, helping to promote a strong tone at the top across the organization.
We have codified our compliance and ethics requirements through our Code of Ethics and Business Conduct, Human Rights Policy, Supplier Code of Conduct, and Whistleblower Response Policy.
Under the direction of the Vice President of Compliance, the Company’s compliance program ensures adherence to the highest ethical standards, regulatory requirements, and applicable public company obligations, including but not limited to the Foreign Corrupt Practices Act (FCPA), the Company’s Code of Ethics and Business Conduct, and Whistleblower Protection. As part of the focus on addressing potential risks and ensuring a global understanding of the various applicable policies and requirements, we have translated our Code of Ethics and Business Conduct and Supplier Code of Conduct into French, Mandarin and Spanish. Our Board annually attests to Oil-Dri’s Code of Ethics and Business Conduct. The Vice President of Compliance also conducts a thorough third-party due diligence process for new third-parties that includes the use of compliance software and our distributor and agent agreements include a mandatory anti-corruption regulatory compliance section.
Oil-Dri maintains policies and procedures addressing anti-corruption and conflicts of interest, including training and attestation requirements where appropriate. Oil-Dri is committed to whistleblower protection and uses a third-party anonymous hotline available by phone or online, where teammates or third parties worldwide may report concerns anonymously. The Company has procedures to protect whistleblowers' employment status as well as protection from harassment in the workplace. Anti-corruption training emphasizes these protections and is provided within the first few months of hire to new teammates in sales or leadership roles who interact with customers or teammates outside the U.S. Training is repeated annually at our Global Sales Meeting for participating sales teams, leaders and teammates in sales support roles.
As hotline cases are investigated, the Company's Vice President of Compliance works with Human Resources and any other involved teammates to maintain confidentiality and protect whistleblowers. Compliance training emphasizes that these protections are legally required and aligned with our "WE CARE" values. All cases are investigated to conclusion, with follow up provided anonymously through the third-party hotline where possible.
Ultimately, our strength comes from leveraging the uniqueness of all teammates and those in our communities. We strive to promote a diverse and inclusive workforce and foster a safe, collaborative, supportive and respectful environment that values diverse perspectives, mitigates unconscious bias and enables a culture where teammates can bring their authentic self to work. We believe Oil-Dri’s success is enhanced by attracting and retaining a workforce that reflects the communities and
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countries where we live and work. We embrace all people, regardless of race, sex, gender identity, age, religion, nationality, physical ability or sexual orientation and are committed to cultivating a culture of inclusion.
Compensation
We believe our success largely depends on attracting and retaining highly skilled teammates. We invest in our teammates by providing market-competitive salaries and bonuses at all Company levels, aligned with role, skill level, experience, knowledge and geography. Our executive compensation programs include a deferred compensation plan, executive deferred bonuses, and equity ownership opportunities through our restricted stock program under our long-term incentive plan, aligning executive and shareholder interests. We also offer training and development and a benefits package that supports well-being, including health care, retirement plans, and paid time off. In the U.S., we provide a 401(k) savings plan with a Company match of 100% of each employee dollar contributed, up to six percent (6%) of earnings, with full vesting after two (2) years of employment. Outside of the U.S., employees are eligible for supplemental benefits based on local market practices. Our competitive compensation and benefits package supports strong employee retention.
Teammate Health and Wellness
Our business success is closely connected to teammates' well-being, maintaining health and wellness a top priority. We offer robust benefit programs to eligible teammates including health, prescription drug, dental, life and disability insurance. We also provide wellness resources, including no-cost smoking cessation programs and gym and weight loss reimbursement to encourage healthy lifestyles. Our employee assistance program offers face-to-face, telephonic and online counseling for a variety of needs. Paid time off and sick days further support work/life balance as part of our "WE CARE" values framework.
Workplace Flexibility
During fiscal year 2026, Oil-Dri continued a hybrid work environment for many non-manufacturing teammates. Oil-Dri offers a range of full- and part-time employment opportunities that support our work/life balance values. Flexible workplace options help us attract and retain diverse talent across the Company.
Continuous Teammate Development
We encourage our teammates to reach their potential through continuous learning and improvement. All teammates have access to our online training and development library, including on-demand courses, webinars, books and podcasts. Teammates may attend conferences and programs or obtain certifications related to their positions at no cost. We also offer tuition reimbursement programs, at varying levels, after one year of employment. These programs provide financial support for educational goals and academic activities that directly relate to the organization’s identified knowledge, skills, and behaviors which support the mission, vision, and values of the Company.
Teammate Engagement
Oil-Dri maintains an open-door policy that encourages conversations across all levels. We promote two-way communication through newsletters, town halls, video announcements, meetings, new hire luncheons with our CEO and occasional anonymous online surveys. We also celebrate work anniversaries, birthdays, retirements and other special occasions.
Safety
Safety is a core value at Oil-Dri and is embedded in our decision-making processes. We view safety as the responsibility of every teammate, from senior management to frontline personnel. As part of our company-wide safety policies, it is expected that all teammates identify safety risks, implement interim controls, maintain controls, and recommend permanent solutions. As part of annual budget and capital planning, our businesses identify additional safety investments needed for training, education, equipment, and processes. We are committed to protecting the health and safety of our workforce and communities while making decisions consistent with long-term sustainability and stewardship.
Through our corporate safety department, we implemented a safety auditing program to assess adherence to local, state and federal safety standards and regulations including those of the Mine Safety and Health Administration ("MSHA") and the Occupational Safety and Health Administration ("OSHA"). Third-party consultants conduct annual global audits using rigorous assessments of regulatory standards, internal procedures and program performance. Audit scores currently indicate high levels
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of compliance. The program reinforces the Company’s commitment to best management practices and continuous improvement.
G OVERNMENT AND E NVIRONMENTAL R EGULATION AND C OMPLIANCE
We are subject to a variety of federal, state, local and foreign laws and regulatory requirements relating to the environment and to health and safety matters. In particular, our mining and manufacturing operations and facilities in Georgia, Mississippi, California and Illinois are required to comply with state surface mining and environmental protection statutes as well as workplace safety requirements. These domestic locations and our Canadian operations are also subject to various federal, state, provincial and local statutes, regulations, ordinances, building codes, and permitting and licensing requirements which govern the discharge, storage and disposal of materials, water and waste into the environment, maintenance of our locations or otherwise regulate our operations. In recent years, regulation and enforcement have grown increasingly stringent, a trend that we expect will continue. We endeavor to be in compliance at all times and in all material respects with all applicable environmental, health, and safety requirements. As a result, compliance with the various statutes, regulations, ordinances, codes, and other requirements have required continuing management efforts and the expenditures relating to such compliance have varied over the years; however, these expenditures have not had a material adverse effect on our capital expenditures, earnings, or competitive position. As part of our ongoing environmental compliance activities, we also incur expenses related to reclaiming mining sites, which historically have not had a material effect on our cost of goods sold.
In addition to environmental, health and safety requirements related to our mining and manufacturing operations and facilities, there has been increased federal, state and international regulation with respect to the content, labeling, use, packaging, registration, trade compliance, advertising, and disposal of products that we sell. For example, in the United States, some of our operations, products, product claims, labeling and advertising are regulated by the Food and Drug Administration ("FDA"), the Consumer Product Safety Commission ("CPSC"), OSHA, MSHA, EPA and the Federal Trade Commission ("FTC"). Most states have agencies that regulate in parallel to these federal agencies. In addition, our international sales and operations are subject to regulation in each of the foreign jurisdictions in which we manufacture, distribute or sell our products. There is increasing federal and state regulation with respect to the content, labeling, use, and disposal after use of various products we sell. Throughout the world, but particularly in the United States and Europe, there is also increasing government scrutiny and regulation of the food chain and products entering or affecting the food chain. We endeavor to be in compliance at all times and in all material respects with those regulations and assist our customers with their compliance.
We cannot provide assurance that, despite all commercially reasonable efforts, we will always be in compliance in all material respects with all applicable environmental laws and requirements nor can we assure that from time to time enforcement of such requirements will not have a material adverse effect on our business. The imposition of more stringent standards or requirements under such regulations could result in increased expenditures. Additionally, we could be required to alter our operations in order to comply with any new standards or requirements under environmental laws or regulations. See Item 1A “Risk Factors - Risks Related to Regulatory Compliance” below for a discussion of the impact of government regulations on our business and other risks to our business.
A VAILABLE I NFORMATION
This Annual Report on Form 10-K, as well as our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to all of the foregoing reports, are made available free of charge on or through the “Investors” section of our website at www.oildri.com as soon as reasonably practicable after such reports are electronically filed with or furnished to the SEC. Information related to corporate governance at Oil-Dri, including its Code of Ethics and Business Conduct, information concerning executive officers, directors and Board committees, and transactions in Oil-Dri securities by directors and executive officers, is available free of charge on or through the “Investors” section of our website at www.oildri.com. The information on our website is not included as a part of, nor incorporated by reference into, this Annual Report on Form 10-K. The SEC also maintains a website, www.sec.gov, that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC.
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