Company: CHD
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000950170-25-019801
Chunk: 123

Company: CHURCH & DWIGHT CO INC /DE/
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1B
Chunk 123
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Indefinite-Lived Intangible AssetsThe following table presents the carrying value of indefinite-lived intangible assets:  

        December 31,

        December 31,

        2024

        2023

        Gross Carrying Value Trade Names
        $
        1,960.7

        $
        1,961.9

        VMS impairment
         
        281.3

        0.0

        Net Carrying Value Trade Names
        $
        1,679.4

        $
        1,961.9

      The Company’s indefinite-lived intangible impairment review is completed in the fourth quarter of each year. 

70

CHURCH & DWIGHT CO., INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)(In millions, except share and per share data) 

Fair value of indefinite-lived trade names was estimated based on a “relief from royalty” or “excess earnings” discounted cash flow method, which contains numerous variables that are subject to change as business conditions change, and therefore could impact fair values in the future.  The key assumptions used in determining fair value are sales growth, profitability margins, tax rates, discount rates and royalty rates. 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. 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.  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 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