Company: CHD
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000950170-25-019801
Chunk: 286

Company: CHURCH & DWIGHT CO INC /DE/
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 286
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ING TOUCH FLAWLESS assets consist of the definite-lived trade name, customer relationships and technology assets recorded at acquisition. The Company evaluated our ability to recover the intangible assets by comparing the carrying amount to the future undiscounted cash flows and determined that the cash flows would not be sufficient to recover the carrying value of the assets.  After determining the estimated fair value of the assets, which included a reduction in cash flows due to the loss of distribution mentioned above along with an expected continued decline in discretionary consumption and higher interest rates, a non-cash impairment charge of $411.0 was recorded in the fourth quarter of 2022.  The impairment charge is included in SG&A with $349.3 recorded in the Consumer Domestic segment and $61.7 recorded in the Consumer International segment.  The impairment charge was applied as a full impairment of the customer relationship and technology assets and a partial impairment of the trade name.  The remaining net book value of the trade name as of December 31, 2024 is $15.4 and will be amortized over a remaining useful life of one year.  The estimated fair value of the intangible assets was determined using the income approach with Level 3 inputs.  The Level 3 inputs include the discount rate of 8.5% applied to management’s estimates of future cash flows based on projections of revenue, gross margin, marketing expense and tax rates considering the loss of product distribution and the reduction in customer demand that FINISHING TOUCH FLAWLESS had been experiencing through December 31, 2022.      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