CHURCH & DWIGHT CO INC /DE/ Fair Value Disclosure
Fair Value Hierarchy
Accounting guidance on fair value measurements and disclosures establishes a hierarchy that prioritizes the inputs used to measure fair value (generally, assumptions that market participants would use in pricing an asset or liability) based on the quality and reliability of the information provided by the inputs, as follows:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
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.
Fair Values of Other Financial Instruments
The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments at December 31, 2025 and 2024:
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December 31, 2025 |
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December 31, 2024 |
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Input |
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Carrying |
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Fair |
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Carrying |
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Fair |
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Level |
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Amount |
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Value |
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Amount |
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Value |
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Financial Assets: |
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Cash equivalents |
Level 1 |
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$ |
217.5 |
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$ |
217.5 |
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$ |
793.3 |
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$ |
793.3 |
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Financial Liabilities: |
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3.15% Senior notes due August 1, 2027 |
Level 2 |
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424.9 |
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420.1 |
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424.9 |
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411.1 |
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2.3% Senior notes due December 15, 2031 |
Level 2 |
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399.5 |
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355.4 |
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399.4 |
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338.9 |
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5.6% Senior notes due November 15, 2032 |
Level 2 |
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499.3 |
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532.3 |
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499.2 |
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515.3 |
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3.95% Senior notes due August 1, 2047 |
Level 2 |
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397.9 |
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318.4 |
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397.8 |
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307.7 |
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5.0% Senior notes due June 15, 2052 |
Level 2 |
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499.9 |
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457.3 |
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499.9 |
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451.9 |
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The Company recognizes transfers between input levels as of the actual date of the event. 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 estimated fair value of the Company’s cash equivalents approximates their carrying value.
Short-Term Borrowings: The carrying amounts of the Company’s unsecured lines of credit and commercial paper issuances approximates fair value because of their short maturities and variable interest rates.
Senior Notes: The Company determines the fair value of its senior notes based on their quoted market value or broker quotes, when possible. In the absence of observable market quotes, the notes are valued using non-binding market consensus prices that the Company seeks to corroborate with observable market data.
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.Historical Timeline
| Fiscal Year | Filed | |
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| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.