Company: CHD
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000950170-25-019801
Chunk: 125

Company: CHURCH & DWIGHT CO INC /DE/
Filing Date: 2025-02-13
Form: 10-K
Item: Item 1B
Chunk 125
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 water flosser consumers switching to more value-branded products.  As a result, the WATERPIK business has experienced declining sales and profits resulting in a reduction in expected future cash flows which have eroded a substantial portion of the excess between the fair and carrying value of the trade name. This indefinite-lived intangible asset may be susceptible to impairment and a continued decline in fair value could trigger a future impairment charge of the WATERPIK trade name. The carrying value of the WATERPIK trade name was $644.7 and fair value represented 135% of the carrying value as of October 1, 2024 (the date of the Company's last annual impairment test). The fair value represented 109% of the carrying value as of October 1, 2023.  The increase in fair value is mainly attributable to a favorable tariff ruling on certain Waterpik products imported from China.  The key assumptions used in the projections from the Company’s October 1, 2024 impairment analysis include a discount rate of 8.1%, revenue growth rates between 2% and 7% and EBITA margins between 25% and 29%. These assumptions were based on current market conditions as of the date of the impairment analysis, recent trends and management’s expectation of the success of initiatives to lower costs and to develop lower-cost water flosser alternatives.  While management has implemented strategies to address the risk, significant changes in operating plans or adverse changes in the future could reduce the underlying cash flows used to estimate fair value. 

71

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

 GoodwillThe changes in the carrying amount of goodwill for the years ended December 31, 2024 and 2023 are as follows: 

        Consumer

        Consumer

        Specialty

        Domestic

        International

        Products

        Total

        Balance at December 31, 2022
        $
        2,056.4

        $
        234.4

        $
        136.0

        $
        2,426.8

        Hero Acquisition adjustments
         
        4.7

        0.0

        0.0

        4.7

        Balance at December 31, 2023
        $
        2,061.1