10q10k10q10k.net

What changed in Church & Dwight's 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of Church & Dwight's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+382 added−355 removedSource: 10-K (2026-02-12) vs 10-K (2025-02-13)

Top changes in Church & Dwight's 2025 10-K

382 paragraphs added · 355 removed · 275 edited across 3 sections

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

7 edited+3 added−1 removed14 unchanged
Biggest changeOur cybersecurity risk management program includes: • risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our global enterprise IT environment; • a security team responsible for managing our (1) cybersecurity risk assessment processes, (2) security controls, and (3) response to security breaches and cyberattacks; • the use of external service providers, where appropriate, to assess, perform tabletop exercises or otherwise assist with aspects of our security controls and designed to anticipate cyberattacks and respond to breaches, including a biennial maturity assessment of our program by an external third-party; • cybersecurity awareness training of our employees and contractors, incident response personnel, and senior management to help them better understand the issues and risks relative to cybersecurity, as well as data privacy (for our employees); • Periodically throughout the year, our IT department performs phishing and other exercises to both test our systems and reinforce training of our personnel; • a cybersecurity incident response plan managed by our CISO that includes procedures for responding to cybersecurity incidents and is designed to protect and preserve the confidentiality, integrity and continued availability of all information possessed by the Company; • policies to establish requirements for protecting information assets and defining acceptable behaviors to ensure compliance, mitigate risks, prevent unauthorized access, and foster a culture of security awareness and accountability, thereby enhancing the organization's overall security posture; and • a third-party risk management process for service providers, suppliers, and vendors.
Biggest changeWe have also conducted training programs for our Board of Directors to enhance Directors’ literacy on information security issues; • periodically throughout the year, our IT department performs phishing and other exercises to both test our systems and reinforce training of our personnel; • a cybersecurity incident response plan managed by our CISO that includes procedures for responding to cybersecurity incidents and is designed to protect and preserve the confidentiality, integrity and continued availability of all information possessed by the Company; • policies to establish requirements for protecting information assets and defining acceptable behaviors to ensure compliance, mitigate risks, prevent unauthorized access, and foster a culture of security awareness and accountability, thereby enhancing the organization's overall security posture; and • a third-party risk management process for service providers, suppliers, and vendors.
The Audit Committee oversees management’s implementation of our cybersecurity risk 31 management program, including reviewing risk assessments from management with respect to our information technology systems and procedures, and overseeing our cybersecurity risk management processes.
The Audit Committee oversees management’s implementation of our cybersecurity risk management program, including reviewing risk assessments from management with respect to our information technology systems and procedures, and overseeing our cybersecurity risk management processes.
In addition, we own an office building in Fort Collins, Colorado that is occupied by Waterpik and an office building in Princeton, New Jersey that is occupied by our research and development department. We own or lease manufacturing facilities, warehouses and other offices in 16 different U.S. states and 12 different countries outside of the U.S.
In addition, we own an office building in Fort Collins, Colorado that is occupied by Waterpik and an office building in Princeton, New Jersey that is occupied by our research and development department. We own or lease manufacturing facilities, warehouses and other offices in 16 different U.S. states and 10 different countries outside of the U.S.
Our cybersecurity incident response plan is part of our overall Information Security Program, which is led by the Company’s Vice President, Global Chief Information Security Officer ("CISO") and overseen by the Company’s Executive Vice President, Global Chief Information Officer, and is designed to protect and preserve the confidentiality, integrity and continued availability of all information owned by, or in the care of, the Company, and the Company’s ability to operate.
Our cybersecurity incident response plan is part of our overall Information Security Program, which is led by the Company’s Vice President, Global Chief Information Security Officer (“CISO”) and overseen by the Company’s Executive Vice President, Chief Technology & Analytics Officer , and is designed to protect and preserve the confidentiality, integrity and continued availability of all information owned by, or in the care of, the Company, and the Company’s ability to operate.
The Audit Committee, which is tasked with oversight of certain risk issues, including cybersecurity, receives reports from the Executive Vice President, Global Chief Information Officer and the Vice President, Chief Information Security Officer each quarter .
The Audit Committee, which is tasked with oversight of certain risk issues, including cybersecurity, receives reports from the Executive Vice President, Chief Technology & Analytics Officer and the Vice President, Chief Information Security Officer each quarter .
In addition, management will update the Audit Committee, as necessary, regarding cybersecurity incidents, that we may experience. Our management team, including our Global Chief Information Officer , is responsible for assessing and managing our material risks from cybersecurity threats.
In addition, management will update the Audit Committee, as necessary, regarding cybersecurity incidents that we may experience. Our management team, including our Executive Vice President, Chief Technology & Analytics Officer , is responsible for assessing and managing our material risks from cybersecurity threats.
We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or cash flows.
We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or cash flows. 31 Cybersecurity Governance Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee oversight of cybersecurity and other information technology risks.
Removed
Cybersecurity Governance Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee oversight of cybersecurity and other information technology risks.
Added
Our cybersecurity risk management program includes: • risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our global enterprise IT environment; • a security team responsible for managing our (1) cybersecurity risk assessment processes, (2) security controls, and (3) response to security breaches and cyberattacks; • the use of external service providers, where appropriate, to assess, perform tabletop exercises or otherwise assist with aspects of our security controls and designed to anticipate cyberattacks and respond to breaches, including a biennial maturity assessment of our program by an external third-party; • cybersecurity information security awareness training that all employees, including the Executive Leadership Team and independent contractors who have a Church & Dwight email address participate in annually, to help them better understand the issues and risks relative to cybersecurity, as well as data privacy (for our employees).
Added
We have not experienced any material cybersecurity events or incidents. Although third party service providers that we engage have encountered cybersecurity events or incidents during the year ended December 31, 2025, our investigation of each event or incident concluded that these occurrences have not resulted in a material impact on our systems, computing environments, customers, or data.
Added
We follow our cybersecurity incident response plan, to monitor for threats when a third-party we use experience a cyberattack.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+2 added−2 removed1 unchanged
Biggest changePeriod Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under All Programs 10/1/2024 to 10/31/2024 - $ - - $ 658,905,959 11/1/2024 to 11/30/2024 - - - $ 658,905,959 12/1/2024 to 12/31/2024 48 105.85 - $ 658,905,959 Total 48 $ 105.85 - 34
Biggest changePeriod Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under All Programs 10/1/2025 to 10/31/2025 - $ - - $ 528,905,959 11/1/2025 to 11/30/2025 1,831,267 83.54 1,831,267 $ 375,905,959 12/1/2025 to 12/31/2025 1,759,980 83.63 1,757,860 $ 228,905,959 Total 3,591,247 $ 83.59 3,589,127 (1) Includes shares of Common Stock withheld by the Company to satisfy tax withholding obligations in connection with the vesting of restricted stock. 34
The following graph compares the yearly change in the cumulative total stockholder return on our Common Stock for the past five fiscal years with the cumulative total return of the S&P 500 Index and the S&P 500 Household Products Index described more fully below. The returns are indexed to a value of $100 at December 31, 2019.
The following graph compares the yearly change in the cumulative total stockholder return on our Common Stock for the past five fiscal years with the cumulative total return of the S&P 500 Index and the S&P 500 Household Products Index described more fully below. The returns are indexed to a value of $100 at December 31, 2020.
ITEM 5. MAR KET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our shares of common stock are traded on the New York Stock Exchange with the stock ticker symbol “CHD”. Approximate number of record holders of our Common Stock as of December 31, 2024: 1,600.
ITEM 5. MAR KET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our shares of common stock are traded on the New York Stock Exchange with the stock ticker symbol “CHD”. Approximate number of record holders of our Common Stock as of December 31, 2025: 1,500.
As a result of the Company’s stock repurchases, there remains $658.9 of share repurchase availability under the 2021 Share Repurchase Program as of December 31, 2024.
There remains $228.9 of share repurchase availability under the 2021 Share Repurchase Program as of December 31, 2025.
Company / Index 2019 2020 2021 2022 2023 2024 ■ Church & Dwight Co., Inc. 100.00 125.48 149.16 118.71 140.92 157.77 ■ S&P 500 Index 100.00 118.39 152.34 124.72 157.47 196.84 ■ S&P 500 Household Products Index 100.00 115.77 133.41 125.51 125.67 146.37 33 Share Repurchase Authorization The Company repurchases shares of its Common Stock from time to time pursuant to its publicly announced share repurchase programs.
Company / Index 2020 2021 2022 2023 2024 2025 ■ Church & Dwight Co., Inc. 100.00 118.88 94.60 112.31 125.74 101.96 ■ S&P 500 Index 100.00 128.68 105.35 133.02 166.27 195.96 ■ S&P 500 Household Products Index 100.00 115.24 108.42 108.56 126.44 108.96 33 Share Repurchase Authorization The Company repurchases shares of its Common Stock from time to time pursuant to its publicly announced share repurchase programs.
Removed
During the fourth quarter of 2024 the Company did not repurchase any shares of Common Stock pursuant to its share repurchase programs.
Added
On October 28, 2021, the Board authorized the Company’s share repurchase program, under which the Company may repurchase up to $1,000.0 in shares of Common Stock (the “2021 Share Repurchase Program”).
Removed
The following table contains information for shares repurchased during the fourth quarter of 2024, which was solely due to shares of Common Stock withheld by the Company to satisfy tax withholding obligations in connection with the vesting of restricted stock.
Added
During the fourth quarter of 2025, the Company executed open market purchases of 3.6 million shares for $300.0, inclusive of fees, of which all 3.6 shares were purchased under the 2021 Share Repurchase Program. The shares were purchased at an average share price of $83.59 and the Company used cash on hand to fund the open market purchases.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

263 edited+102 added−77 removed150 unchanged
Biggest changeAND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) (In millions, except share and per share data) The following tables present financial information relating to the Company’s segments for each of the three years in the period ended December 31, 2024: Year Ended December 31, 2024 Consumer Domestic Consumer International SPD Corporate (1) Total Consolidated Net Sales $ 4,732.3 $ 1,071.5 $ 303.3 - $ 6,107.1 Cost of sales 2,450.1 605.5 193.5 67.9 3,317.0 Gross Profit 2,282.2 466.0 109.8 ( 67.9 ) 2,790.1 Marketing expenses 538.5 156.9 2.7 - 698.1 Research and Development (2) 123.7 12.7 3.3 - 139.7 Selling, general and administrative expenses 607.7 183.6 64.7 ( 67.9 ) 788.1 VMS Trade name and other asset impairments 327.4 29.7 - - 357.1 Income from Operations 684.9 83.1 39.1 - 807.1 Year Ended December 31, 2023 Consumer Domestic Consumer International SPD Corporate (1) Total Consolidated Net Sales $ 4,571.2 $ 975.7 $ 321.0 $ - $ 5,867.9 Cost of sales 2,434.0 568.7 216.3 60.4 3,279.4 Gross Profit 2,137.2 407.0 104.7 ( 60.4 ) 2,588.5 Marketing expenses 509.5 127.7 4.1 - 641.3 Research and Development (2) 107.1 11.1 4.2 - 122.4 Selling, general and administrative expenses 590.9 164.0 72.9 ( 60.4 ) 767.4 Income from Operations 929.7 104.2 23.5 - 1,057.4 Year Ended December 31, 2022 Consumer Domestic Consumer International SPD Corporate (1) Total Consolidated Net Sales $ 4,131.0 $ 896.1 $ 348.5 - $ 5,375.6 Cost of sales 2,336.9 523.7 230.7 34.3 3,125.6 Gross Profit 1,794.1 372.4 117.8 ( 34.3 ) 2,250.0 Marketing expenses 412.9 117.7 4.6 - 535.2 Research and Development (2) 96.2 10.0 3.8 - 110.0 Selling, general and administrative expenses 436.6 136.8 56.9 ( 34.3 ) 596.0 Flawless Trade name and other asset impairments 349.3 61.7 - - 411.0 Income from Operations 499.1 46.2 52.5 - 597.8 (1) C orporate reflects the administrative costs of the production planning and logistics functions which are elements of Cost of Sales in the Company’s Consolidated Statements of Income but are allocated to the operating segments in Selling, General and Administrative expenses to determine operating segment income before income taxes.
Biggest changeThe following tables present financial information relating to the Company’s segments for each of the three years in the period ended December 31, 2025: Year Ended December 31, 2025 Consumer Domestic Consumer International SPD Consolidating Reclassification (1) Total Consolidated Net Sales $ 4,774.8 $ 1,129.4 $ 299.0 - $ 6,203.2 Cost of sales 2,544.0 625.5 190.4 68.5 3,428.4 Gross Profit 2,230.8 503.9 108.6 ( 68.5 ) 2,774.8 Marketing expenses 532.7 172.7 3.5 - 708.9 Research and Development (2) 129.1 13.5 3.0 - 145.6 Selling, general and administrative expenses 648.2 201.5 61.5 ( 68.5 ) 842.7 Income from Operations 920.8 116.2 40.6 - 1,077.6 Year Ended December 31, 2024 Consumer Domestic Consumer International SPD Consolidating Reclassification (1) Total Consolidated Net Sales $ 4,732.3 $ 1,071.5 $ 303.3 $ - $ 6,107.1 Cost of sales 2,450.1 605.5 193.5 67.9 3,317.0 Gross Profit 2,282.2 466.0 109.8 ( 67.9 ) 2,790.1 Marketing expenses 538.5 156.9 2.7 - 698.1 Research and Development (2) 123.7 12.7 3.3 - 139.7 Selling, general and administrative expenses 607.7 183.6 64.7 ( 67.9 ) 788.1 VMS Trade name and other asset impairments 327.4 29.7 - - 357.1 Income from Operations 684.9 83.1 39.1 - 807.1 Year Ended December 31, 2023 Consumer Domestic Consumer International SPD Consolidating Reclassification (1) Total Consolidated Net Sales $ 4,571.2 $ 975.7 $ 321.0 - $ 5,867.9 Cost of sales 2,434.0 568.7 216.3 60.4 3,279.4 Gross Profit 2,137.2 407.0 104.7 ( 60.4 ) 2,588.5 Marketing expenses 509.5 127.7 4.1 - 641.3 Research and Development (2) 107.1 11.1 4.2 - 122.4 Selling, general and administrative expenses 590.9 164.0 72.9 ( 60.4 ) 767.4 Income from Operations 929.7 104.2 23.5 - 1,057.4 87 CHURCH & DWIGHT CO., INC.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) (In millions, except share and per share data) Unrealized gains and losses related to currency translation are recorded in Accumulated Other Comprehensive Income (Loss). Gains and losses on foreign currency transactions are recorded in the Consolidated Statements of Income.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) (In millions, except share and per share data) Foreign Currency Translation Unrealized gains and losses related to currency translation are recorded in Accumulated Other Comprehensive Income (Loss). Gains and losses on foreign currency transactions are recorded in the Consolidated Statements of Income.
Deferred tax assets and liabilities are recognized to reflect the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards.
Deferred tax assets and liabilities are recognized to reflect the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the differences are expected to be recovered or settled. Management provides a valuation allowance against deferred tax assets for amounts which are not considered “more likely than not” to be realized.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the differences are expected to be recovered or settled. Management provides a valuation allowance against deferred tax assets for amounts which are not considered “more likely than not” to be realized.
Additional information regarding the Company’s risk management activities, including derivative instruments and hedging activities, are separately disclosed. See Notes 2 and 3. Goodwill and Other Intangible Assets The Company has intangible assets of substantial value on its consolidated balance sheet. Intangible assets are generally related to intangible assets with a useful life, indefinite-lived trade names and goodwill.
Additional information regarding the Company’s risk management activities, including derivative instruments and hedging activities, is separately disclosed. See Notes 2 and 3. Goodwill and Other Intangible Assets The Company has intangible assets of substantial value on its consolidated balance sheet. Intangible assets are generally related to intangible assets with a useful life, indefinite-lived trade names and goodwill.
The Consumer Domestic and Consumer International segments market a variety of personal care, household and over-the-counter products, including but not limited to baking soda, cat litter, laundry detergent, condoms, stain removers, hair removal, gummy dietary supplements, dry shampoo, oral care, cold remedy, acne treatment, water flossers and showerheads.
The Consumer Domestic and Consumer International segments market a variety of personal care, household and over-the-counter products, including but not limited to baking soda, cat litter, laundry detergent, condoms, stain removers, hair removal, gummy dietary supplements, dry shampoo, oral care, cold remedy, acne treatment, and water flossers.
The number of shares that may be issued ranges from 0 % to 200 % based on relative TSR during the three-year performance period. Discounted Employee Stock Purchase Plan The Company’s discounted Employee Stock Purchase Plan (“ESPP”) was adopted in February 2023 by the Company’s Board of Directors and became effective in April 2023 upon approval by the Company’s stockholders.
The number of shares that may be issued ranges from 0 % to 200 % based on relative TSR during the three-year performance period. Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan (“ESPP”) was adopted in February 2023 by the Company’s Board of Directors and became effective in April 2023 upon approval by the Company’s stockholders.
The goodwill is a result of expected synergies from combined operations of the acquired business and the Company. Pro forma results are not presented because the impact of the acquisition is not material to the Company’s consolidated financial results. The goodwill and other intangible assets associated with the Graphico Acquisition are not deductible for U.S. tax purposes.
The goodwill is a result of expected synergies from combined operations of the acquired business and the Company. Pro forma results are not presented because the impact of the acquisition is not material to the Company’s consolidated financial results. The goodwill and other intangible assets associated with the Graphico Acquisition are not deductible for U.S. tax purposes. 7.
The 2021 Share Repurchase Program did not modify our evergreen share repurchase program, authorized by the Board on January 29, 2014, under which we may repurchase, from time to time, Common Stock to reduce or eliminate dilution associated with issuances of Common Stock under its incentive plans.
The 2021 Share Repurchase Program did not modify our evergreen share repurchase program, authorized by the Board on January 29, 2014, under which we may repurchase, from time to time, Common Stock to reduce or eliminate dilution associated with issuances of Common Stock under our incentive plans.
A future impairment charge for goodwill or intangible assets could have a material effect on our consolidated financial position or results of operations. Income Taxes Income taxes are accounted for under the asset and liability method.
A future impairment charge for goodwill or intangible assets could have a material effect on our consolidated financial position or results of operations. Income and other Taxes Income taxes are accounted for under the asset and liability method.
We anticipate that our cash from operations, together with our current borrowing capacity, will be sufficient to fund our share repurchase programs to the extent implemented by management, pay debt and interest as it comes due, pay dividends at the latest approved rate, and meet our capital expenditure program costs, which are expected to be approximately $130.0 in 2025 including manufacturing capacity investments for Therabreath and Sterimar and an ERP project.
We anticipate that our cash from operations, together with our current borrowing capacity, will be sufficient to fund our share repurchase programs to the extent implemented by management, pay debt and interest as it comes due, pay dividends at the latest approved rate, and meet our capital expenditure program costs, which are expected to be approximately $130.0 in 2026 including manufacturing capacity investments for TheraBreath and Sterimar and an ERP project.
The Revolving Credit Facility also contains customary events of default, including failure to make certain payments under the Term Loan Facility when due beyond the grace period, event of default on other material indebtedness, breach of covenants, materially incorrect representations and warranties, events of bankruptcy, material adverse judgments, certain events relating to pension plans, the failure of any of the loan documents to remain in full force and effect and the occurrence of any change in control with respect to the Company. 11.
The Revolving Credit Facility also contains customary events of default, including failure to make certain payments under the Term Loan Facility when due beyond the grace period, event of default on other material indebtedness, breach of covenants, materially incorrect representations and warranties, events of bankruptcy, material adverse judgments, certain events relating to pension plans, the failure of any of the loan documents to remain in full force and effect and the occurrence of any change in control with respect to the Company. 12.
Ewing, New Jersey Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Church & Dwight Co., Inc. and subsidiaries (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements").
Ewing, New Jersey Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Church & Dwight Co., Inc. and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements").
There were no transfers between input levels during the twelve months ended December 31, 2024. The following methods and assumptions were used to estimate the fair value of each class of financial instruments reflected in the Consolidated Balance Sheets: Cash Equivalents: Cash equivalents consist of highly liquid short-term investments and term bank deposits, which mature within three months.
There were no transfers between input levels during the twelve months ended December 31, 2025. The following methods and assumptions were used to estimate the fair value of each class of financial instruments reflected in the Consolidated Balance Sheets: Cash Equivalents: Cash equivalents consist of highly liquid short-term investments and term bank deposits, which mature within three months.
The fair value of these commodity hedge agreements is reflected in the Consolidated Balance Sheet within Other Current Assets, Accounts Payable, and Accrued and Other Liabilities.
The fair value of these commodity hedge agreements is reflected in the Consolidated Balance Sheet within Other Current Assets, Accounts Payable, and Accrued Expenses and Other Liabilities.
I TEM 9B. OTHER INFORMATION (c) During the quarter ended December 31, 2024, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K).
I TEM 9B. OTHER INFORMATION (c) During the quarter ended December 31, 2025, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K).
The assumptions used in the model require significant judgement in determining the expected future cash flows. The key assumptions utilized in the Company's impairment analysis included, but were not limited, net sales growth rates between -15.2% and 2.1%, EBITA margins in the low single digits, and a discount rate of 8.25 %.
The assumptions used in the model required significant judgement in determining the expected future cash flows. The key assumptions utilized in the Company's impairment analysis included, but were not limited, net sales growth rates between - 15.2 % and 2.1 %, EBITA margins in the low single digits, and a discount rate of 8.25 %.
The following table sets forth a reconciliation of the weighted-average number of shares of Common Stock outstanding to the weighted-average number of shares outstanding on a diluted basis: 2024 2023 2022 Weighted average common shares outstanding - basic 244.4 244.9 242.9 Dilutive effect of stock options 2.5 2.7 3.4 Weighted average common shares outstanding - diluted 246.9 247.6 246.3 Antidilutive stock options outstanding 1.1 2.6 3.0 Employee and Director Stock Based Compensation The fair value of stock-based compensation is determined at the grant date and the related expense is generally recognized over the required employee service period in which the share-based compensation vests.
The following table sets forth a reconciliation of the weighted-average number of shares of Common Stock outstanding to the weighted-average number of shares outstanding on a diluted basis: 2025 2024 2023 Weighted average common shares outstanding - basic 242.7 244.4 244.9 Dilutive effect of stock options 1.6 2.5 2.7 Weighted average common shares outstanding - diluted 244.3 246.9 247.6 Antidilutive stock options outstanding 2.1 1.1 2.6 Employee and Director Stock Based Compensation The fair value of stock-based compensation is determined at the grant date and the related expense is generally recognized over the required employee service period in which the share-based compensation vests.
We determined that the fair value of all indefinite-lived intangible assets for each of the years in the three-year period ended December 31, 2024, exceeded their respective carrying values based upon the forecasted cash flows and profitability, with the exception of our VMS business described below.
We determined that the fair value of all indefinite-lived intangible assets for each of the years in the three-year period ended December 31, 2025, exceeded their respective carrying values based upon the forecasted cash flows and profitability, with the exception of our VMS business described below.
Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023.
Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.
During the third quarter of 2024, the Company continued to experience a decline in market share and a deterioration in the financial performance of its VMS business, which includes the VITAFUSION and L'IL CRITTERS trade name, primarily due to significant product competition coming from new category entrants, including private label.
During the third quarter of 2024, the Company continued to experience a decline in market share and a deterioration in the financial performance of its VMS business, which includes the VITAFUSION and L'IL CRITTERS trade names, primarily due to significant product competition coming from new category entrants, including private label.
Over the past two decades, we have diversified from an almost exclusively U.S. business to a global company with approximately 18% of sales derived from countries outside of the United States in 2024, and we believe ongoing international expansion represents a significant opportunity to grow our business.
Over the past two two decades, we have diversified from an almost exclusively U.S. business to a global company with approximately 18% of sales derived from countries outside of the United States in 2025, and we believe ongoing international expansion represents a significant opportunity to grow our business.
Ewing, New Jersey Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Church & Dwight Co., Inc. and subsidiaries (the "Company") as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Ewing, New Jersey Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Church & Dwight Co., Inc. and subsidiaries (the "Company") as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
The continued decline in profitability caused management to reassess its long-term strategy and financial outlook of the business. The revised financial outlook reflects lower estimates of future sales growth and cash flows which resulted in a triggering event in the third quarter. The triggering event required the Company to review the carrying value of assets supporting the business.
The continued decline in profitability caused management to reassess its long-term strategy and financial outlook of the business. The revised financial outlook reflected lower estimates of future sales growth and cash flows which resulted in a triggering event in the third quarter. The triggering event required the Company to review the carrying value of assets supporting the business.
Such proceedings are generally subject to considerable uncertainty and their outcomes, and any related damages, may not be reasonably predictable or estimable. Any such proceedings could result in a material adverse outcome negatively impacting the Company’s business, financial condition, results of operations or cash flows. 16.
Such proceedings are generally subject to considerable uncertainty and their outcomes, and any related damages, may not be reasonably predictable or estimable. Any such proceedings could result in a material adverse outcome negatively impacting the Company’s business, financial condition, results of operations or cash flows. 17.
Our reportable segments comprise the structure used by our Chief Executive Officer, who has been determined to be the Chief Operating Decision Maker ("CODM") to make key operating decisions and assess performance. The CODM considers Operating Income for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment.
Our reportable segments comprise the structure used by our Chief Executive Officer, who has been determined to be the Chief Operating Decision Maker ("CODM") to make key operating decisions and assess performance. The CODM considers Income from Operations for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment.
This is evidenced by our 2015 acquisition of certain assets of Varied Industries Corporation (the “Vi-cor Acquisition”), the 2016 acquisitions of Spencer Forrest, Inc., the maker of TOPPIK (the “Toppik Acquisition”), and the ANUSOL and RECTINOL businesses from Johnson & Johnson (the “Anusol Acquisition”), the 2017 acquisitions of the VIVISCAL brand from Lifes2Good Holdings Limited (the “Viviscal Acquisition”), and the WATERPIK brand from Pik Holdings, Inc.
This is evidenced by our 2015 acquisition of certain assets of Varied Industries Corporation, the 2016 acquisitions of Spencer Forrest, Inc., the maker of TOPPIK (the “Toppik Acquisition”), and the ANUSOL and RECTINOL businesses from Johnson & Johnson (the “Anusol Acquisition”), the 2017 acquisitions of the VIVISCAL brand from Lifes2Good Holdings Limited (the “Viviscal Acquisition”), and the WATERPIK brand from Pik Holdings, Inc.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with the accounting principles generally accepted in the United States of America.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with the accounting principles generally accepted in the United States of America.
Some retail customers have responded to economic conditions by increasing their private label offerings (primarily in the dietary supplements, stain fighters, diagnostic kits and oral analgesics categories), launching their own brands, and consolidating the product selections they offer to the top few leading brands in each category.
Some retail customers have responded to economic conditions by increasing their private label offerings (primarily in the stain fighters, diagnostic kits and oral analgesics categories), launching their own brands, and consolidating the product selections they offer to the top few leading brands in each category.
As a result of this assessment and based on the criteria in the COSO framework, management has concluded that as of December 31, 2024, the Company’s internal control over financial reporting was effective. The Company’s independent registered public accounting firm, Deloitte & Touche LLP, has audited the Company’s internal control over financial reporting.
As a result of this assessment and based on the criteria in the COSO framework, management has concluded that as of December 31, 2025, the Company’s internal control over financial reporting was effective. The Company’s independent registered public accounting firm, Deloitte & Touche LLP, has audited the Company’s internal control over financial reporting.
AND SUBSIDIARIES CONSO LIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Years Ended December 31, 2024, 2023 and 2022 (In millions) Number of Shares Amounts Common Stock Treasury Stock Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Church & Dwight Co., Inc.
AND SUBSIDIARIES CONSO LIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Years Ended December 31, 2025, 2024 and 2023 (In millions) Number of Shares Amounts Common Stock Treasury Stock Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Church & Dwight Co., Inc.
The annual RSU grants vest one-third on each of the first, second and third anniversaries of the grant date, subject to the recipient’s continued employment with the Company from the grant date through the applicable vesting date, and are settled with shares of the Company’s Common Stock within 60 days following the applicable vesting date.
The annual RSU grants vest in one-third increments on each of the first, second and third anniversaries of the grant date, subject to the recipient’s continued employment with the Company from the grant date through the applicable vesting date, and are settled with shares of the Company’s Common Stock within 60 days following the applicable vesting date.
The impairment was due to a continued decline in market share and a deterioration in the financial performance for the VMS business, which includes the VITAFUSION and L'IL CRITTERS trade name, primarily due to significant product competition coming from new category entrants, including private label.
The impairment was due to a continued decline in market share and a deterioration in the financial performance for the VMS business, which included the VITAFUSION and L'IL CRITTERS trade name, primarily due to significant product competition coming from new category entrants, including private label.
The assets supporting the VMS business include the VITAFUSION and L'IL CRITTERS indefinite-lived trade name, a definite-lived customer relationship intangible asset and PP&E specific to the VMS business. The Company used an excess earnings discounted cash flow model to determine the fair value of the trade name.
The assets supporting the VMS business included the VITAFUSION and L'IL CRITTERS indefinite-lived trade name, a definite-lived customer relationship intangible asset and PP&E specific to the VMS business. The Company used an excess earnings discounted cash flow model to determine the fair value of the trade name.
The Company is not party to those agreements and do not have an economic interest in the suppliers' decisions to sell their receivables and has not been required to pledge any assets as security nor to provide any guarantee to third-party finance providers or intermediaries.
The Company is not party to those agreements and does not have an economic interest in the suppliers' decisions to sell their receivables and has not been required to pledge any assets as security nor to provide any guarantee to third-party finance providers or intermediaries.
Estimates are based on market conditions and management’s current expectation of the success of growth and profitability initiatives. The valuation resulted in a full impairment of the $ 281.3 trade name. The remaining carry value of the trade name at December 31, 2024 is $ 0.0 .
Estimates were based on market conditions and management’s current expectation of the success of growth and profitability initiatives. The valuation resulted in a full impairment of the $ 281.3 trade name. The remaining carry value of the trade name at December 31, 2024 is $ 0.0 .
Under the hedge agreements, the Company agreed to pay a fixed price per gallon of diesel fuel determined at the time the agreements were executed and to receive a floating rate payment that is determined on a monthly basis based on the average price of the Department of Energy’s Diesel Fuel Index during the applicable month and is d esigned to offset any increase or decrease in fuel costs that the Company pays to it common carriers.
Under the hedge agreements, the Company agreed to pay a fixed price per gallon of diesel fuel determined at the time the agreements were executed and to receive a floating rate payment that is determined on a monthly basis based on the average price of the Department of Energy’s Diesel Fuel Index during the applicable month and is designed to offset any increase or decrease in fuel costs that the Company pays to it common carriers.
Such untimely transactions require immediate recognition in earnings of gains and losses previously recorded in other comprehensive income. During 2024 and 2023, the Company used derivative instruments to mitigate risk, some of which were designated as hedging instruments.
Such untimely transactions require immediate recognition in earnings of gains and losses previously recorded in other comprehensive income. During 2025 and 2024, the Company used derivative instruments to mitigate risk, some of which were designated as hedging instruments.
We also continue to focus on controlling our costs. Historically, we have been able to mitigate the effects of cost increases primarily by implementing cost reduction programs and, to a lesser extent, by passing along cost increases to customers.
We also continue to focus on controlling our costs. Historically, we have been able to mitigate the effects of cost increases including tariffs primarily by implementing cost reduction programs and, to a lesser extent, by passing along cost increases to customers.
It is reasonably possible that a decrease of approximately $ 0.3 in the unrecognized tax benefits may occur within the next twelve months related to the settlement of these audits or the lapse of applicable statutes of limitations.
It is reasonably possible that a decrease of approximately $ 0.5 in the unrecognized tax benefits may occur within the next twelve months related to the settlement of these audits or the lapse of applicable statutes of limitations.
Management evaluated the Company’s internal control over financial reporting as of December 31, 2024. In making this assessment, management used the framework established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Management evaluated the Company’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the framework established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
The Company determined that the fair value of all indefinite-lived trade names for each of the years in the three-year period ended December 31, 2024 exceeded their respective carrying values based upon the forecasted cash flows and profitability, with the exception of the Vitamins, Minerals and Supplements ("VMS") business described below.
The Company determined that the fair value of all indefinite-lived trade names for each of the years in the three-year period ended December 31, 2025 exceeded their respective carrying values based upon the forecasted cash flows and profitability, with the exception of the Vitamins, Minerals and Supplements ("VMS") business and the Spinbrush business described below.
The PSUs were valued at a weighted average grant date fair value per PSU equal to $ 122.24 in 2024 and $ 110.95 in 2023 using a Monte Carlo model. The performance target is based on the Company's total shareholder return ("TSR") relative to a Company selected peer group.
The PSUs were valued at a weighted average grant date fair value equal to $ 136.76 in 2025, $ 122.24 in 2024 and $ 110.95 in 2023 per PSU using a Monte Carlo model. The performance target is based on the Company's total shareholder return ("TSR") relative to a Company selected peer group.
Also included in the balance of unrecognized tax benefits at December 31, 2024, 2023 and 2022 are $ 0.9 , $ 0.9 and $ 1.0 , respectively, of tax benefits that, if recognized, would result in adjustments to deferred taxes. The Company is subject to U.S. federal income tax as well as income tax in multiple state and international jurisdictions.
Also included in the balance of unrecognized tax benefits at December 31, 2025, 2024 and 2023 are $ 1.7 , $ 0.9 and $ 0.9 , respectively, of tax benefits that, if recognized, would result in adjustments to deferred taxes. The Company is subject to U.S. federal income tax as well as income tax in multiple state and international jurisdictions.
New Accounting Pronouncements Refer to Note 1 to the Consolidated Financial Statements included in this Annual Report for recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted as of December 31, 2024. 42 CHURCH & DWIGHT CO., INC AND SUBSIDIARIES (Dollars in millions, except share and per share data) RESULTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022 The discussion of consolidated results of operations presented below is followed by a more detailed discussion of results of operations by segment.
New Accounting Pronouncements Refer to Note 1 to the Consolidated Financial Statements included in this Annual Report for recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted as of December 31, 2025. 41 CHURCH & DWIGHT CO., INC AND SUBSIDIARIES (Dollars in millions, except share and per share data) RESULTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023 The discussion of consolidated results of operations presented below is followed by a more detailed discussion of results of operations by segment.
Other : The carrying amounts of Accounts Receivable, Accounts Payable, and Accrued and Other Liabilities approximated estimated fair values as of December 31, 2024 and 2023. 3. Derivative Instruments and Risk Management Changes in interest rates, foreign exchange rates, the price of the Company's Common Stock and commodity prices expose the Company to market risk.
Other : The carrying amounts of Accounts Receivable, Accounts Payable, and Accrued Expenses and Other Liabilities approximated estimated fair values as of December 31, 2025 and 2024. 3. Derivative Instruments and Risk Management Changes in interest rates, foreign exchange rates, the price of the Company's Common Stock and commodity prices expose the Company to market risk.
Since 2001, we have acquired six of our seven “power brands.” We believe we are well positioned to meet the ongoing challenges described above due to our strong financial condition, experience operating in challenging environments and continued focus on key strategic initiatives.
Since 2001, we have acquired six of our seven “power brands.” We believe we are well positioned to meet the ongoing challenges described above due to our strong financial condition, experience operating in challenging environments, talented and dedicated employees and continued focus on key strategic initiatives.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 13, 2025,expressed an unqualified opinion on the Company's internal control over financial reporting.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 12, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting.
The identification and integration of strategic acquisitions are an important component of our overall strategy and product category diversification. Acquisitions have added significantly to our sales, profits and product category diversification over the last decade.
The identification and integration of strategic acquisitions is an important component of our overall strategy and product category diversification. Acquisitions have added significantly to our sales, profits and product category diversification over the last decade.
Transactions under this agreement are accounted for as sales of accounts receivable and are removed from the Consolidated Balance Sheet at the time of the sales transaction. The level of customers associated with the Company’ s factoring program and the sales performance by those customers has driven the amount factored each year.
Transactions under this agreement are accounted for as sales of accounts receivable and are removed from the Consolidated Balance Sheet at the time of the sales transaction. The level of customers associated with the Company’s factoring program and the sales performance by those customers has driven the amount factored each year.
In this regard, settlement of any issue with, or an adverse determination in litigation against, a taxing authority could require the use of cash and result in an increase in the Company’s annual effective tax rate. Conversely, favorable resolution of an issue with a taxing authority would be recognized as a reduction to the Company’s annual effective tax rate.
In this regard, settlement of any issue, or an adverse determination in litigation, with a taxing authority could require the use of cash and result in an increase in our annual effective tax rate. Conversely, favorable resolution of an issue with a taxing authority would be recognized as a reduction to our annual effective tax rate.
Currently, the purchase price equals 85 % of the fair market value of our Common Stock on the last trading day of the applicable quarterly purchase period. The maximum value of Common Stock that an eligible employee may purchase each calendar year is the lesser of 10% of an eligible employee’s annual pay and $ 25,000 .
Currently, the purchase price under the ESPP is 85 % of the fair market value of our Common Stock on the last trading day of the applicable quarterly purchase period. The maximum value of Common Stock that an eligible employee may purchase each calendar year is the lesser of 10% of an eligible employee’s annual pay and $ 25,000 .
We have subsidiary operations in eight countries (Canada, Mexico, U.K., France, Germany, China, Australia, and Japan). We also export products to over 130 other countries through our Global Markets Group using a broad network of third-party distributors. In 2024, we benefited from our expanded global footprint and expect to continue to focus on selectively expanding our global business.
We have subsidiary operations in eight countries (Canada, Mexico, U.K., France, Germany, China, Australia, and Japan). We also export products to over 100 other countries through our Global Markets Group using a broad network of third-party distributors. In 2025, we benefited from our expanded global footprint and expect to continue to focus on selectively expanding our global business.
The amounts charged to earnings, including the effect of the hedges, totaled expense of $ 2.0 , $ 3.7 and $ 1.2 in 2024, 2023 and 2022, respectively. Non-employee mem bers of the Company’s Board are eligible to defer up to 100 % of their directors’ compensation into a similar plan; however, the only option for investment is Common Stock.
The amounts charged to earnings, including the effect of the hedges, totaled expense of $ 2.8 , $ 2.0 and $ 3.7 in 2025, 2024 and 2023, respectively. Non-employee mem bers of the Company’s Board are eligible to defer up to 100 % of their directors’ compensation into a similar plan; however, the only option for investment is Common Stock.
Changes in these assumptions could have a significant impact on the fair value of the trade names, leading to an impairment or a change in an identified impairment.
Changes in these assumptions could have a significant impact on the fair value of the trade name, leading to an impairment or a change in an identified impairment.
There have been no other accounting pronouncements issued but not yet adopted by the Company which are expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. 2.
There have been no other accounting pronouncements is sued but not yet adopted by the Company which are expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. 2.
The Company sells its specialty products to industrial customers, livestock producers and through distributors. Refer to Note 17 for disaggregated revenue information with respect to each of the Company’s segments. 60 CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) (In millions, except share and per share data) b.
The Company sells its specialty products to industrial customers, livestock producers and through distributors. Refer to Note 18 for disaggregated revenue information with respect to each of the Company’s segments. 61 CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) (In millions, except share and per share data) b.
Approximately 96 %, 96 % and 97 % of long-lived assets were located in the U.S. at December 31, 2024, 2023 and 2022, respectively. Other than the U.S., no one country accounts for more than 5 % of consolidated net sales and 5 % of total assets.
Approximately 96 % , 96 % and 96 % of long-lived assets were located in the U.S. at December 31, 2025, 2024 and 2023, respectively. Other than the U.S., no one country accounts for more than 5 % of consolidated net sales and 5 % of total assets.
The Company also believes that it is more likely than not that the benefit from certain additional deferred tax assets of a foreign subsidiary will not be realized. In recognition of this risk, the Company maintains a valuation allowance of $ 0.7 and $ 0.8 at December 31, 2024 and 2023, respectively, on these deferred tax assets.
The Company also believes that it is more likely than not that the benefit from certain additional deferred tax assets of a foreign subsidiary will not be realized. In recognition of this risk, the Company maintains a valuation allowance of $ 0.6 and $ 0.7 at December 31, 2025 and 2024, respectively, on these deferred tax assets.
Additionally, in connection with the Hero Acquisition (see Note 6), 854,882 shares of restricted stock were issued to certain individuals in October 2022 with a total fair value of $ 61.5 . This restricted stock is recognized as compensation expense ratably over the vesting period if those individuals continue to be employed by the Company.
In connection with the Hero Acquisition , 854,882 shares of restricted stock were issued to certain individuals in October 2022 with a total fair value of $ 61.5 . This restricted stock is recognized as compensation expense ratably over the vesting period if those individuals continue to be employed by the Company.
Estimates as to the future demand used in the valuation of inventory involve judgments regarding the ongoing success of the Company’s products. The Company evaluates its inventory levels and expected usage on a periodic basis and records adjustments as required.
Estimates as to the future demand used in the valuation of inventory involve judgments regarding the ongoing success of the Company’s products. The Company evaluates its inventory levels and expected usage on a periodic basis and records adjustments as require d.
Restricted Stock Units The Company granted employees 121,050 RSUs with a total fair value of $ 12.4 at a weighted average grant date fair value of $ 102.40 per RSU during the year ended December 31, 2024.
The Company granted employees 121,050 RSUs with a total fair value of $ 12.4 at a weighted average grant date fair value of $ 102.40 per RSU during the year ended December 31, 2024.
Cash, together with our current borrowing capacity, may be used for acquisitions that would complement our existing product lines or geographic markets. 48 CHURCH & DWIGHT CO., INC AND SUBSIDIARIES (Dollars in millions, except share and per share data) Cash Flow Analysis Year Ended December 31, December 31, December 31, 2024 2023 2022 Net cash provided by operating activities $ 1,156.2 $ 1,030.6 $ 885.2 Net cash used in investing activities $ (183.3 ) $ (234.3 ) $ (728.6 ) Net cash used in financing activities $ (343.4 ) $ (725.6 ) $ (120.9 ) 2024 compared to 2023 Net Cash Provided by Operating Activities – Our primary source of liquidity is our cash flow provided by operating activities, which is dependent on the level of net income and changes in working capital.
Cash, together with our current borrowing capacity, may be used for acquisitions that would complement our existing product lines or geographic markets. 48 CHURCH & DWIGHT CO., INC AND SUBSIDIARIES (Dollars in millions, except share and per share data) Cash Flow Analysis Year Ended December 31, December 31, December 31, 2025 2024 2023 Net cash provided by operating activities $ 1,215.4 $ 1,156.2 $ 1,030.6 Net cash used in investing activities $ (616.9 ) $ (183.3 ) $ (234.3 ) Net cash used in financing activities $ (1,162.4 ) $ (343.4 ) $ (725.6 ) 2025 compared to 2024 Net Cash Provided by Operating Activities – Our primary source of liquidity is our cash flow provided by operating activities, which is dependent on the level of net income and changes in working capital.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2024, of the Company and our report dated February 13, 2025, expressed an unqualified opinion on those consolidated financial statements.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2025, of the Company and our report dated February 12, 2026, expressed an unqualified opinion on those consolidated financial statements.
Adjustments to reflect inventory at net realizable value were $ 45.2 at December 31, 2024, and $ 52.5 at December 31, 2023. Property, Plant and Equipment Property, Plant and Equipment (“PP&E”) are stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets.
Adjustments to reflect inventory at net realizable value were $ 33.5 at December 31, 2025, and $ 45.2 at December 31, 2024. Property, Plant and Equipment Property, Plant and Equipment (“PP& E”) are stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets.
Nonoperating Expenses Trade name and other asset impairment charges were $357.1 million in 2024 related to non-cash charges to adjust the carrying value of intangible assets and property, plant, and equipment related to the VMS business.
Nonoperating Expenses VMS trade name and other asset impairment charges were $357.1 in 2024 related to non-cash charges to reduce the carrying value of intangible assets and property, plant, and equipment related to the VMS business.
As a result of the issued cash-settled stock units, the Company recorded stock compensation expense of $ 0.9 , $ 1.3 and $ 0.3 in 2024, 2023 and 2022, respectively. The liability was approximately $ 4.4 and $ 3.5 as of December 31, 2024 and 2023, respectively.
As a result of the issued cash-settled stock units, the Company recorded stock compensation expense of $ 0.9 and $ 1.3 in 2024 and 2023, respectively. The liability was approximately $ 3.4 and $ 4.4 as of December 31, 2025 and 2024, respectively.
Seven of those brands are designated as "power brands" because they compete in large categories, and we believe they have the potential for significant global expansion. Those seven brands are ARM & HAMMER®; OXICLEAN®; VITAFUSION® and L’IL CRITTERS®; BATISTE®; WATERPIK®; THERABREATH®; and HERO® and represent approximately 70% of our net sales and profits.
Seven of those brands are designated as "power brands" because they compete in large categories, and we believe they have the potential for significant global expansion. Those seven brands are ARM & HAMMER®; OXICLEAN®; TOUCHLAND®; BATISTE®; WATERPIK®; THERABREATH®; and HERO® and represent approximately 70% of our net sales and profits.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. 64 CHURCH & DWIGHT CO., INC.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. 65 CHURCH & DWIGHT CO., INC.
The determination of fair value contains numerous variables that are subject to change as business conditions change and therefore could impact fair value in the future. 72 CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) (In millions, except share and per share data) 8.
The determination of fair value contains numerous variables that are subject to change as business conditions change and therefore could impact fair value in the future. 74 CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) (In millions, except share and per share data) 9.
In recognition of this risk, the Company has provided a valuation allowance of $ 5.2 and $ 0.0 at December 31, 2024 and 2023, respectively, on the deferred tax asset relating to these foreign tax credit carryforwards. The Company does not have any undistributed earnings of foreign subsidiaries that are considered to be indefinitely reinvested outside of the U.S.
In recognition of this risk, the Company has provided a valuation allowance of $ 8.4 and $ 5.2 at December 31, 2025 and 2024, respectively, on the deferred tax asset relating to these foreign tax credit carryforwards. The Company does not have any undistributed earnings of foreign subsidiaries that are considered to be indefinitely reinvested outside of the U.S.
We adjust this liability as a result of changes in tax legislation, interpretations of laws by courts, guidance and rulings issued by tax authorities, changes in estimates and the expiration of the statute of limitations. Many of the judgments involved in adjusting the liability involve assumptions and estimates that are highly uncertain and subject to change.
We adjust this liability due to changes in tax legislation, interpretations of laws by courts, guidance and rulings issued by tax authorities, changes in estimates and the expiration of the statute of limitations. Many of the judgments involved in adjusting the liability involve assumptions and estimates that are highly uncertain and subject to change.
The Company believes that it is more likely than not that the benefit from these net operating loss carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance of $ 8.3 and $ 9.0 at December 31, 2024 and 2023, respectively, on the deferred tax asset relating to these net operating loss carryforwards.
The Company believes that it is more likely than not that the benefit from these net operating loss carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance of $ 8.1 and $ 8.3 at December 31, 2025 and 2024, respectively, on the deferred tax asset relating to these net operating loss carryforwards.
Given the significant judgments made by management to estimate the trade names’ fair value, performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to the revenue growth rates and the selection of the discount rates involved a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.
Given the significant judgments made by management to estimate the trade name's fair value, performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to the revenue growth rates, EBITA margin, and the selection of a discount rate involved a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.
Trade Names and Other Intangibles, Net –Vitamins and Waterpik — Refer to Notes 1 and 7 to the Consolidated Financial Statements Critical Audit Matter Description The Company owns trade names that are considered to have indefinite lives. These trade names are required to be measured periodically for impairment.
Trade Names and Other Intangibles, Net –Waterpik — Refer to Notes 1 and 8 to the Financial Statements Critical Audit Matter Description The Company owns trade names that are considered to have indefinite lives. These trade names are required to be measured periodically for impairment.
Dollars, of which $ 317.0 qualifies as foreign currency cash flow hedges and, therefore, changes in the fair value of the contracts are recorded in Accumulated Other Comprehensive Income (Loss) and reclassified to earnings when the hedged transaction affected earnings.
Dollars, of which $ 438.2 qualifies as foreign currency cash flow hedges and, therefore, changes in the fair value of the contracts are recorded in Accumulated Other Comprehensive Income (Loss) and reclassified to earnings when the hedged transaction affected earnings.
Starting with stock options granted in 2018, a terminated employee who meets the above conditions may exercise any stock options until the date such stock options otherwise would have expired, subject to specified conditions. Issuances of Common Stock to satisfy employee stock option exercises currently are made from treasury stock.
Starting with stock options granted in 2018, a terminated employee who meets the above conditions may exercise any stock options until the date such stock options otherwise would have expired, subject to specified conditions. Issuances of Common Stock to satisfy employee stock option exercises currently are made from treasury stock. 81 CHURCH & DWIGHT CO., INC.
The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards: 2024 2023 2022 Intrinsic Value of Stock Options Exercised $ 134.0 $ 125.5 $ 32.1 Stock Compensation Expense Related to Stock Option Awards $ 28.7 $ 26.3 $ 25.7 Issued Stock Options 1.1 1.0 1.6 Weighted Average Fair Value of Stock Options issued (per share) $ 29.90 $ 24.06 $ 21.50 Fair Value of Stock Options Issued $ 31.5 $ 24.9 $ 33.6 The following table provides a summary of the assumptions used in the valuation of issued stock options: 2024 2023 2022 Risk-free interest rate 4.2 % 4.0 % 2.9 % Expected life in years 7.2 7.3 7.1 Expected volatility 22.3 % 22.4 % 21.7 % Dividend yield 1.1 % 1.3 % 1.2 % The fair value of stock options is based upon the Black Scholes option pricing model.
The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards: 2025 2024 2023 Intrinsic Value of Stock Options Exercised $ 23.0 $ 134.0 $ 125.5 Stock Compensation Expense Related to Stock Option Awards $ 26.9 $ 28.7 $ 26.3 Issued Stock Options 1.1 1.1 1.0 Weighted Average Fair Value of Stock Options issued (per share) $ 32.86 $ 29.90 $ 24.06 Fair Value of Stock Options Issued $ 34.9 $ 31.5 $ 24.9 The following table provides a summary of the assumptions used in the valuation of issued stock options: 2025 2024 2023 Risk-free interest rate 4.2 % 4.2 % 4.0 % Expected life in years 7.0 7.2 7.3 Expected volatility 22.6 % 22.3 % 22.4 % Dividend yield 1.1 % 1.1 % 1.3 % The fair value of stock options is based upon the Black Scholes option pricing model.
This section of this Form 10-K generally discusses 2024 and 2023 results and year-to-year comparisons between 2024 and 2023.
This section of this Form 10-K generally discusses 2025 and 2024 results and year-to-year comparisons between 2025 and 2024.

… 362 more changes not shown on this page.

Other CHD 10-K year-over-year comparisons