CHURCH & DWIGHT CO INC /DE/ Goodwill & Intangibles Disclosure
The Company has intangible assets of substantial value on its consolidated balance sheet. These intangible assets are generally related to intangible assets with a useful life, indefinite-lived trade names and goodwill. The Company determines whether an intangible asset (other than goodwill) has a useful life based on multiple factors, including how long the Company intends to generate cash flows from the asset. These intangible assets are more fully explained in the following sections.
Indefinite-Lived Intangible Assets
The following table presents the carrying value of indefinite-lived intangible assets:
|
December 31, |
|
|
December 31, |
|
||
|
2025 |
|
|
2024 |
|
||
Gross Carrying Value Trade Names |
$ |
1,680.7 |
|
|
$ |
1,960.7 |
|
VMS impairment |
0.0 |
|
|
$ |
(281.3 |
) |
|
Spinbrush impairment |
|
(7.9 |
) |
|
|
0.0 |
|
Net Carrying Value Trade Names |
$ |
1,672.8 |
|
|
$ |
1,679.4 |
|
The Company’s indefinite-lived intangible impairment review is completed in the fourth quarter of each year.
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, 2025 exceeded their respective carrying values based upon the forecasted cash flows and profitability, with the exception of the Vitamins, Minerals and Supplements ("VMS") business and the Spinbrush business described below.
On May 1, 2025, the Company announced that it would exit the Spinbrush business. In December 2025, the Company entered into an agreement to transfer all Spinbrush intellectual property to a third party for nominal consideration. Net sales of the Spinbrush business were $53.6 in the year ended December 31, 2025. The Company recorded $12.6 in Cost of Sales for inventory and fixed and $8.6 in SG&A, of which $7.9 was related to the indefinite lived Trade name.
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 names, 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 reflected 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 included 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 discounted cash flow model to determine the fair value of the trade name. The assumptions used in the model required significant judgement in determining the expected future cash flows. The key assumptions utilized in the Company's impairment analysis included, but were not limited, net sales growth rates between -15.2% and 2.1%, EBITA margins in the low single digits, and a discount rate of 8.25%. Estimates were based on market conditions and management’s current expectation of the success of growth and profitability initiatives. The valuation resulted in a full impairment of the $281.3 trade name. The remaining carry value of the trade name at December 31, 2024 is $0.0.
On December 9, 2025, the Company announced a definitive agreement to sell the VitaFusion and L’il Critters brands to Piping Rock Health Products, Inc. The transaction closed on December 31, 2025. See Note 7 for further details.
A summary of the VMS intangible and fixed asset impairment charges are as follows:
|
December 31, |
|
|
|
2024 |
|
|
Trade Name |
$ |
281.3 |
|
Customer Relationship Intangible Asset |
|
15.8 |
|
PP&E |
|
60.0 |
|
Total VMS impairment charges |
$ |
357.1 |
|
The Company’s global WATERPIK business is experiencing customer distribution losses and a decline in consumer demand, mainly due to lower consumer spending and more customers choosing value brands amid inflation. This has reduced sales, profits, and expected cash flows, eroding much of the excess fair value over carrying value for the WATERPIK trade name. As of October 1, 2025, the trade name’s carrying value was $644.7, with fair value at 117% of carrying value, down from 135% in 2024, reflecting falling sales, rising competition, business exits, and margin pressure from higher costs and tariffs. The Company's impairment analysis used an 8.0% discount rate, projected mid-single- to low double-digit revenue growth, and EBITA margins around 25%, based on current market trends and cost-lowering initiatives. Further declines in performance or adverse changes could trigger an impairment charge for the WATERPIK trade name.
Intangible Assets With a Useful Life
The following table provides information related to the carrying value of amortizable intangible assets:
|
December 31, 2025 |
|
|
|
|
December 31, 2024 |
|
||||||||||||||||||||||||||
|
Gross |
|
|
|
|
|
|
|
|
|
|
|
Amortization |
|
Gross |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Carrying |
|
|
Accumulated |
|
|
Impairment |
|
|
|
|
|
Period |
|
Carrying |
|
|
Accumulated |
|
|
Impairment |
|
|
|
|
||||||||
|
Amount |
|
|
Amortization |
|
|
Charges(2) |
|
|
Net |
|
|
(Years) |
|
Amount |
|
|
Amortization |
|
|
Charges(1) |
|
|
Net |
|
||||||||
Amortizable intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Trade names |
$ |
2,113.4 |
|
|
$ |
(562.1 |
) |
|
$ |
(11.6 |
) |
|
$ |
1,539.7 |
|
|
3-20 |
|
$ |
1,383.4 |
|
|
$ |
(479.6 |
) |
|
$ |
0.0 |
|
|
$ |
903.8 |
|
Customer Relationships |
|
598.5 |
|
|
|
(365.2 |
) |
|
|
(0.7 |
) |
|
|
232.6 |
|
|
15-20 |
|
|
644.9 |
|
|
|
(402.1 |
) |
|
|
(15.8 |
) |
|
|
227.0 |
|
Patents/Formulas |
|
205.6 |
|
|
|
(139.2 |
) |
|
|
0.0 |
|
|
|
66.4 |
|
|
4-20 |
|
|
205.5 |
|
|
|
(127.2 |
) |
|
0.0 |
|
|
|
78.3 |
|
|
Total |
$ |
2,917.5 |
|
|
$ |
(1,066.5 |
) |
|
$ |
(12.3 |
) |
|
$ |
1,838.7 |
|
|
|
|
$ |
2,233.8 |
|
|
$ |
(1,008.9 |
) |
|
$ |
(15.8 |
) |
|
$ |
1,209.1 |
|
(1) The $15.8 impairment charge relates to the VMS customer relationship intangible asset, which had a gross value of $79.2 and accumulated amortization of $63.4 prior to full impairment (as discussed above).
(2) The $12.3 impairment charge relates to the Flawless trade name and Spinbrush customer relationship intangible asset, which had a gross value of $76.2 and accumulated amortization of $63.9 prior to full impairment. The impairments were a result of the Company's decision to exit these businesses (as discussed above).
Intangible amortization expense amounted to $121.1 for 2025, $121.5 for 2024 and $124.3 for 2023, respectively. The Company estimates that intangible amortization expense will be approximately $135.0 in 2026 and approximately $134.0 declining to $120.0 annually over the next five years.
Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 are as follows:
|
Consumer |
|
|
Consumer |
|
|
Specialty |
|
|
|
|
||||
|
Domestic |
|
|
International |
|
|
Products |
|
|
Total |
|
||||
Balance at December 31, 2023 |
$ |
2,061.1 |
|
|
$ |
234.4 |
|
|
$ |
136.0 |
|
|
$ |
2,431.5 |
|
Graphico acquired goodwill |
|
0.0 |
|
|
|
2.8 |
|
|
|
0.0 |
|
|
|
2.8 |
|
Passport divestiture |
|
0.0 |
|
|
|
0.0 |
|
|
|
(1.1 |
) |
|
|
(1.1 |
) |
Balance at December 31, 2024 |
$ |
2,061.1 |
|
|
$ |
237.2 |
|
|
$ |
134.9 |
|
|
$ |
2,433.2 |
|
Touchland acquired goodwill |
|
206.5 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
206.5 |
|
VMS divestiture (as discussed above) |
|
(12.6 |
) |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
(12.6 |
) |
Other |
|
0.4 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.4 |
|
Balance at December 31, 2025 |
$ |
2,255.4 |
|
|
$ |
237.2 |
|
|
$ |
134.9 |
|
|
$ |
2,627.5 |
|
The Company tests goodwill for each reporting unit which are also the Company's reportable segments. The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2025, determined that the estimated fair value substantially exceeded the carrying values of all reporting units. The determination of fair value contains numerous variables that are subject to change as business conditions change and therefore could impact fair value in the future.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.