Church & Dwight's **Cash and Cash Equivalents** were so high in Q3 2023 primarily because of a **robust operating cash flow** that generated **$795.1 million**, significantly boosting the cash balance from **$270.3 million** at the start of the period to **$573.3 million** by the end. This strong cash performance was complemented by relatively **lower cash usage in investing activities** (mainly modest capital expenditures) and offset net outflows from financing activities, resulting in the overall high cash level in Q3 2023.  **[0000950170-23-058681_chd-20230930.htm:3]** 

Why was Cash and cash equivalents so high in Q3 2023?

The documents provide an explanation for the change in cash and cash equivalents when comparing the Q4 2023 balance (**$344.5 million**  **[0000950170-24-015810_chd-20231231.htm:91]** ) with the previous year's Q4 balance, noting a significant increase from **$270.3 million** as of December 31, 2022.  **[0000950170-24-015810_chd-20231231.htm:91]** **[0000950170-24-010091_chd-ex99_1.htm:8]**  However, they do not discuss or explain the decline observed when comparing Q3 2023’s balance (**$573.3 million**  **[0000950170-23-058681_chd-20230930.htm:2]** ) to Q4 2023’s balance. Therefore, the reasons behind the Q3 to Q4 decline in cash and cash equivalents are not provided in the available documents.  **[0000950170-23-058681_chd-20230930.htm:2]** **[0000950170-24-015810_chd-20231231.htm:91]** 

What caused the decline in Cash and cash equivalents in Q4 2023?

The drop in **Long-term Debt** in Q4 2023 was mainly driven by **$200 million in repayments of the term loan due December 22, 2024**, along with additional **net debt repayments of $270.6 million** during the year, which significantly reduced the overall debt level compared to the previous period.  **[0000950170-24-015810_chd-20231231.htm:115]** **[0000950170-24-015810_chd-20231231.htm:82]** 

Why did Long-term Debt drop in Q4 2023?

The emergence of a current portion in Q4 2023 is due to the reclassification of a portion of Church & Dwight’s term loan. Specifically, **$200 million** of the term loan due on **December 22, 2024** was reclassified from long-term debt to current liabilities because it is now due within the next 12 months.  **[0000950170-24-015810_chd-20231231.htm:91]** **[0000950170-24-015810_chd-20231231.htm:115]** 

What led to the emergence of a Current portion of long-term debt in Q4 2023?

The increase in Total Assets in Q3 2023 was primarily driven by several factors. **Cash and cash equivalents** saw a significant rise, increasing from **$270.3 million** to **$573.3 million**, which reflects strong cash flow generation. Additionally, **accounts receivable** increased from **$422.0 million** to **$460.9 million**, likely as a result of elevated sales activity during the period. **Inventories** also grew from **$646.6 million** to **$671.7 million**, suggesting preparations for expected higher demand or new product launches. Furthermore, **property, plant, and equipment (net)** increased from **$761.1 million** to **$862.4 million**, indicating ongoing capacity investments. These positive changes were partially offset by a decline in **trade names and other intangibles (net)** from **$3,431.6 million** to **$3,338.2 million**, as well as a minor reduction in **other assets**.  **[0000950170-23-058681_chd-20230930.htm:2]** 

What factors contributed to the Total Assets increase in Q3 2023?

bebddde835709ab159d21df0f6ec417633055084ee1da2add0eaf02ac6a9ac7e

The strong operating cash flow in Q3 2024 was primarily driven by an improvement in **cash earnings**—meaning net income adjusted for non‐cash items—as well as favorable changes in working capital. Notably, there was a significant increase in **accounts payable** (an increase of **$88.0 million** in 2024 compared to a decrease of **$10.1 million** in 2023) and adjustments in accrued expenses. Additionally, a substantial **$357.1 million impairment** of tradename and other assets, although non‐cash in nature, contributed to the overall change by impacting the net income adjustment. These factors together were the key reasons for the increased operating cash flow in Q3 2024.  **[0000950170-24-120026_chd-20240930.htm:34]** **[0000950170-24-119799_chd-ex99_1.htm:9]** **[0000950170-24-120026_chd-20240930.htm:3]** 

Why was Operating Cash Flow so high in Q3 2024?

The documents indicate that the capital expenditures in Q3 2024 were lower at **$48.60 million** compared to **$58.30 million** in Q3 2023.  **[0000950170-23-058681_chd-20230930.htm:3]** **[0000950170-24-120026_chd-20240930.htm:3]**  However, there is no information provided in the documents regarding the specific factors or reasons that drove this reduction in capital expenditures in Q3 2024.  **[0000950170-23-058681_chd-20230930.htm:3]** **[0000950170-24-120026_chd-20240930.htm:3]** 

What drove the reduction in capital expenditures in Q3 2024?

The **negative Net Income** in Q3 2024 is primarily attributed to a **non-cash asset impairment charge of $357.1 million** related to Church & Dwight’s vitamin business, specifically due to reduced expectations for the long-term growth and profitability of its **gummy vitamins segment**. This significant impairment caused the company to register a **net loss of $0.31 per share** compared to a **net income of $0.71 per share** in Q3 2023.  **[0000950170-24-119799_chd-ex99_1.htm:0]** **[CHD_3405469_3]** **[0000950170-24-120026_chd-20240930.htm:26]** 

Why did Net Income turn negative in Q3 2024?

The sharp drop in Other adjustments to net income in Q4 2024 was primarily caused by **non-cash asset impairment charges**, including a **$357.1 million impairment** related to the VMS trade name and other assets in 2024.  **[0000950170-25-011420_chd-ex99_1.htm:10]** **[0000950170-25-019801_chd-20241231.htm:94]** 

What caused Other adjustments to net income to drop sharply in Q4 2024?

85182dbbfd080e37714ab97f2f8079589aba26d715be3bbce51cccbc324c5ca5

The operating income turnaround in Q4 2023 was primarily driven by the **elimination of a significant $411 million impairment charge** that weighed on Q4 2022. In addition, the quarter benefited from strong underlying performance—including **higher net sales driven by 6.4% growth** (with **5.3% organic sales increase, supported by favorable pricing and product mix**) and a **260 basis point improvement in gross margin**—along with better cost management shown by **lower SG&A expenses as a percentage of net sales**. This combination of improved sales performance and enhanced operational efficiency led to the substantial turnaround in operating income.  **[0000950170-24-010091_chd-ex99_1.htm:11]** **[0000950170-24-010091_chd-ex99_1.htm:0]** **[0000950170-24-010091_chd-ex99_1.htm:9]** 

What drove the operating income turnaround in Q4 2023?

Church & Dwight's net income turned positive in Q4 2023 primarily because the **$411 million impairment charge** recorded in Q4 2022 was absent in Q4 2023, significantly reducing expenses. This change was further supported by a **higher gross profit** resulting from increased net sales and margin expansion, as well as **substantially lower SG&A expenses** (from **$611.2 million** in Q4 2022 to **$246.2 million** in Q4 2023), which together improved operating income and led to the positive net income in Q4 2023.  **[0000950170-24-010091_chd-ex99_1.htm:11]** **[0000950170-24-010091_chd-ex99_1.htm:8]** 

Why did net income shift from negative to positive in Q4 2023?

The EPS surge in FY 2023 was driven by several factors. **Higher net income**, fueled by increased sales, improved gross margins, and lower tax rates, played a key role. Additionally, the **absence of a non-cash impairment charge of $411 million** that was recorded in FY 2022 significantly boosted EPS. Enhanced operational efficiency, including improved operating margins and robust sales growth with margin expansion, also contributed to the higher net income per share in FY 2023.  **[0000950170-24-015810_chd-20231231.htm:89]** **[0000950170-24-010091_chd-ex99_1.htm:0]** **[0000950170-24-015810_chd-20231231.htm:66]** 

What factors contributed to the EPS surge in FY 2023?

The documents do not provide a definitive explanation for the spike in Q4 2023 other income. However, it is noted that the **Other income (expense), net** category typically includes factors such as **foreign exchange impacts**, **derivative gains or losses**, and other **non-operating items**, any of which could lead to significant fluctuations between periods.  **[0000950170-24-010091_chd-ex99_1.htm:8]** 

What caused the spike in other income in Q4 2023?

cd665c6e83a0840017b8c3a090d45ded1536ae656d3f9e075e2a49fe1191c63a

Net Income (USD, millions)

Depreciation expense (USD, millions)

Amortization expense (USD, millions)

Non-cash compensation expense (USD, millions)

Other adjustments to net income (USD, millions)

Net Cash Provided By Operating Activities (USD, millions)

Additions to property, plant and equipment (USD, millions)

Other investing activities (USD, millions)

Net Cash Used In Investing Activities (USD, millions)

Payment of cash dividends (USD, millions)

Proceeds from stock options exercised (USD, millions)

Deferred financing and other (USD, millions)

Net Cash Used In Financing Activities (USD, millions)

Effect of exchange rate changes on cash and cash equivalents (USD, millions)

Net Change In Cash and Cash Equivalents (USD, millions)

Deferred income taxes (USD, millions)

Accounts receivable (USD, millions)

Inventories (USD, millions)

Other current assets (USD, millions)

Accounts payable (USD, millions)

Accrued expenses (USD, millions)

Income taxes payable (USD, millions)

Other operating assets and liabilities, net (USD, millions)

b6c895c5b2e8166e98d3e5dc38427d9c8e303f003e893586991a78ae4631328a

Net Sales (USD, millions)

Cost of sales (USD, millions)

Gross Profit (USD, millions)

Marketing expenses (USD, millions)

Selling, general and administrative expenses (USD, millions)

Income from Operations (USD, millions)

Equity in earnings of affiliates (USD, millions)

Other income (expense), net (USD, millions)

Income before Income Taxes (USD, millions)

Income taxes (USD, millions)

Weighted average shares outstanding - Basic (millions)

Weighted average shares outstanding - Diluted (millions)

Net income per share - Basic (USD)

Net income per share - Diluted (USD)

Cash dividends per share (USD)

8a39ef1c4a975797ab30f460f9c6637f7eb5c85975f794606a8fa73bfbb111a3

Accrued expenses and other liabilities (USD, millions)

Long-term Debt (USD, millions)

Deferred and Other Long-term Liabilities (USD, millions)

Total Stockholders' Equity (USD, millions)

Total Liabilities and Stockholders’ Equity (USD, millions)

873ea1752da15f04c2b2d77f6a830ca1e8c32d33bbfad9d7b70e714f967d9fc3

7228ab6f770b5b0e5fb483d895d794f84d85f8660f7c443c3b0dd618efc87cda

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

b258cee20be3d207779ff03a302f030c62e795b4ef3910379fb5f17dfbc5f97c

d808e3ea6c8f8c79e8615a53cc75c81c201567021e881cd0fbf0e291fbc9c2c0

1c14ce59a94144d29e117f3f6e4445112005e0b8959d9e4c6366ef94237e59d5

United States

International

Other

Consumer Domestic

Consumer International

Specialty Products Division (SPD)

Total Revenue

f1a7fa32cc49265a3c984d8e4e4cd667007aea8c88becb08f4d0b235eb7efc97

- Household Products

- Personal Care Products

Specialty Products

a4361b59261302e43f0745614ee9f66898fca76f9056b10c303489d09bff2d96

CHURCH & DWIGHT CO INC /DE/ (CHD)

Financials