Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 27, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CHD | |
Entity Registrant Name | CHURCH & DWIGHT CO., INC. | |
Entity Central Index Key | 0000313927 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-10585 | |
Entity Tax Identification Number | 13-4996950 | |
Entity Address, Address Line One | 500 Charles Ewing Boulevard | |
Entity Address, City or Town | Ewing | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08628 | |
City Area Code | 609 | |
Local Phone Number | 806-1200 | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Common Stock, $1 par value | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 248,450,377 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Income Statement [Abstract] | |||||
Net Sales | [1] | $ 1,241 | $ 1,089.4 | $ 3,600.5 | $ 3,213.5 |
Cost of sales | 675.8 | 581.7 | 1,943.7 | 1,753.5 | |
Gross Profit | 565.2 | 507.7 | 1,656.8 | 1,460 | |
Marketing expenses | 170.9 | 125.2 | 389.6 | 352.4 | |
Selling, general and administrative expenses | 120.5 | 165.7 | 428.1 | 462.6 | |
Income from Operations | 273.8 | 216.8 | 839.1 | 645 | |
Equity in earnings of affiliates | 1.9 | 2.1 | 5.5 | 5.5 | |
Investment earnings | 0 | 0.3 | 0.4 | 1 | |
Other income (expense), net | (0.3) | 0.3 | (1.1) | 0.1 | |
Interest expense | (13.9) | (18.9) | (47) | (55.6) | |
Income before Income Taxes | [2] | 261.5 | 200.6 | 796.9 | 596 |
Income taxes | 45.3 | 43.3 | 161.2 | 124.5 | |
Net Income | $ 216.2 | $ 157.3 | $ 635.7 | $ 471.5 | |
Weighted average shares outstanding - Basic | 247.7 | 246.8 | 246.5 | 246.4 | |
Weighted average shares outstanding - Diluted | 253.3 | 252.9 | 252 | 252.5 | |
Net income per share - Basic | $ 0.87 | $ 0.64 | $ 2.58 | $ 1.91 | |
Net income per share - Diluted | 0.85 | 0.62 | 2.52 | 1.87 | |
Cash dividends per share | $ 0.24 | $ 0.23 | $ 0.72 | $ 0.68 | |
[1] | Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $3.3 and $2.8 for the three months ended September 30, 2020 and September 30, 2019, respectively , and were $9.1 and $7.5 for the nine months ended September 30, 2020 and September 30, 2019, respectively. | ||||
[2] | In determining income before income taxes, interest expense, investment earnings and certain aspects of other income and expense were allocated among segments based upon each segment’s relative income from operations. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income | $ 216.2 | $ 157.3 | $ 635.7 | $ 471.5 |
Other comprehensive income, net of tax: | ||||
Foreign exchange translation adjustments | 6.2 | (5.1) | (0.4) | (2.2) |
Income (loss) from derivative agreements | 1.3 | (7.2) | (23.7) | (24.9) |
Other comprehensive income (loss) | 7.5 | (12.3) | (24.1) | (27.1) |
Comprehensive income | $ 223.7 | $ 145 | $ 611.6 | $ 444.4 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 549.1 | $ 155.7 |
Accounts receivable, less allowances of $4.4 and $2.4 | 372.8 | 356.4 |
Inventories | 497.7 | 417.4 |
Other current assets | 24.9 | 26.9 |
Total Current Assets | 1,444.5 | 956.4 |
Property, Plant and Equipment, Net | 579.5 | 573 |
Equity Investment in Affiliates | 9.4 | 9.7 |
Trade Names and Other Intangibles, Net | 2,674.1 | 2,750 |
Goodwill | 2,078.2 | 2,079.5 |
Other Assets | 291.3 | 288.8 |
Total Assets | 7,077 | 6,657.4 |
Current Liabilities | ||
Short-term borrowings | 1.6 | 252.9 |
Accounts payable and accrued expenses | 955.8 | 831.9 |
Income taxes payable | 14.5 | 7.5 |
Total Current Liabilities | 971.9 | 1,092.3 |
Long-term Debt | 1,811.9 | 1,810.2 |
Deferred Income Taxes | 599.9 | 579.6 |
Deferred and Other Long-term Liabilities | 363 | 315.5 |
Business Acquisition Liabilities | 120 | 192 |
Total Liabilities | 3,866.7 | 3,989.6 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred Stock, $1.00 par value, Authorized 2,500,000 shares; none issued | 0 | 0 |
Common Stock, $1.00 par value, Authorized 600,000,000 shares and 292,855,100 shares issued as of September 30, 2020 and December 31, 2019 | 292.8 | 292.8 |
Additional paid-in capital | 302 | 295.5 |
Retained earnings | 4,695.4 | 4,237.4 |
Accumulated other comprehensive loss | (90.8) | (66.7) |
Common stock in treasury, at cost: 44,477,807 shares as of September 30, 2020 and 47,439,300 shares as of December 31, 2019 | (1,989.1) | (2,091.2) |
Total Stockholders' Equity | 3,210.3 | 2,667.8 |
Total Liabilities and Stockholders' Equity | $ 7,077 | $ 6,657.4 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 4.4 | $ 2.4 |
Preferred Stock, par value | $ 1 | $ 1 |
Preferred Stock, Authorized | 2,500,000 | 2,500,000 |
Preferred Stock, issued | 0 | 0 |
Common Stock, par value | $ 1 | $ 1 |
Common Stock, Authorized | 600,000,000 | 600,000,000 |
Common Stock, shares issued | 292,855,100 | 292,855,100 |
Common stock in treasury, shares | 44,477,807 | 47,439,300 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flow From Operating Activities | ||
Net Income | $ 635.7 | $ 471.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 48.4 | 47.9 |
Amortization expense | 90.5 | 82 |
Change in fair value of business acquisition liabilities | (71.7) | 9.7 |
Deferred income taxes | 28 | 6.1 |
Equity in net earnings of affiliates | (5.5) | (5.5) |
Distributions from unconsolidated affiliates | 5.8 | 3.8 |
Non-cash compensation expense | 18.7 | 17.7 |
Gain on sale of assets | (3) | 0 |
Other | 1.4 | 6.7 |
Change in assets and liabilities: | ||
Accounts receivable | (18.1) | (41.8) |
Inventories | (82.3) | (7.1) |
Other current assets | (4.1) | 6.5 |
Accounts payable and accrued expenses | 140.1 | 1.8 |
Income taxes payable | 13.1 | 14.9 |
Other operating assets and liabilities, net | 1.2 | 3.3 |
Net Cash Provided By Operating Activities | 798.2 | 617.5 |
Cash Flow From Investing Activities | ||
Additions to property, plant and equipment | (54.6) | (39.7) |
Proceeds from sale of assets | 7 | 0 |
Acquisitions | 0 | (475) |
Other | (3.6) | (4.3) |
Net Cash Used In Investing Activities | (51.2) | (519) |
Cash Flow From Financing Activities | ||
Long-term debt borrowings | 0 | 300 |
Long-term debt (repayments) | 0 | (300) |
Short-term debt borrowings, net of (repayments) | (250.4) | 72.4 |
Proceeds from stock options exercised | 89.1 | 49.8 |
Payment of cash dividends | (177.7) | (168.2) |
Purchase of treasury stock | 0 | (250) |
Payment of business acquisition liabilities | (14.5) | 0 |
Deferred financing and other | (0.2) | (2.6) |
Net Cash Used In Financing Activities | (353.7) | (298.6) |
Effect of exchange rate changes on cash and cash equivalents | 0.1 | (1.9) |
Net Change In Cash and Cash Equivalents | 393.4 | (202) |
Cash and Cash Equivalents at Beginning of Period | 155.7 | 316.7 |
Cash and Cash Equivalents at End of Period | 549.1 | 114.7 |
Cash paid during the period for: | ||
Interest (net of amounts capitalized) | 52 | 57.4 |
Income taxes | 120 | 91.3 |
Supplemental disclosure of non-cash investing activities: | ||
Property, plant and equipment expenditures included in Accounts Payable | $ 15.4 | $ 8.5 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2018 | $ 2,453.8 | $ 292.8 | $ (1,898.8) | $ 280.8 | $ 3,832.6 | $ (53.6) |
Beginning Balance (in shares) at Dec. 31, 2018 | 292.8 | (46) | ||||
Adoption of new accounting pronouncements | 13 | $ 0 | $ 0 | 0 | 13 | 0 |
Net Income | 175.7 | 0 | 0 | 0 | 175.7 | 0 |
Other comprehensive income (loss) | (5.9) | 0 | 0 | 0 | 0 | (5.9) |
Cash dividends | (55.9) | 0 | 0 | 0 | (55.9) | 0 |
Stock purchases | (100) | $ 0 | $ (100) | 0 | 0 | 0 |
Stock purchases (in shares) | 0 | (1.5) | ||||
Stock based compensation expense and stock option plan transactions | 18.6 | $ 0 | $ 18.1 | 0.5 | 0 | 0 |
Stock based compensation expense and stock option plan transactions (in shares) | 0 | 0.7 | ||||
Ending Balance at Mar. 31, 2019 | 2,499.3 | $ 292.8 | $ (1,980.7) | 281.3 | 3,965.4 | (59.5) |
Ending Balance (in shares) at Mar. 31, 2019 | 292.8 | (46.8) | ||||
Beginning Balance at Dec. 31, 2018 | 2,453.8 | $ 292.8 | $ (1,898.8) | 280.8 | 3,832.6 | (53.6) |
Beginning Balance (in shares) at Dec. 31, 2018 | 292.8 | (46) | ||||
Net Income | 471.5 | |||||
Other comprehensive income (loss) | (27.1) | |||||
Ending Balance at Sep. 30, 2019 | 2,559.3 | $ 292.8 | $ (2,095.3) | 293.6 | 4,148.9 | (80.7) |
Ending Balance (in shares) at Sep. 30, 2019 | 292.8 | (47.6) | ||||
Beginning Balance at Mar. 31, 2019 | 2,499.3 | $ 292.8 | $ (1,980.7) | 281.3 | 3,965.4 | (59.5) |
Beginning Balance (in shares) at Mar. 31, 2019 | 292.8 | (46.8) | ||||
Net Income | 138.5 | $ 0 | $ 0 | 0 | 138.5 | 0 |
Other comprehensive income (loss) | (8.9) | 0 | 0 | 0 | 0 | (8.9) |
Cash dividends | (56.1) | 0 | 0 | 0 | (56.1) | 0 |
Stock based compensation expense and stock option plan transactions | 32 | $ 0 | $ 25 | 7 | 0 | 0 |
Stock based compensation expense and stock option plan transactions (in shares) | 0 | 0.9 | ||||
Ending Balance at Jun. 30, 2019 | 2,604.8 | $ 292.8 | $ (1,955.7) | 288.3 | 4,047.8 | (68.4) |
Ending Balance (in shares) at Jun. 30, 2019 | 292.8 | (45.9) | ||||
Net Income | 157.3 | $ 0 | $ 0 | 0 | 157.3 | 0 |
Other comprehensive income (loss) | (12.3) | 0 | 0 | 0 | 0 | (12.3) |
Cash dividends | (56.2) | 0 | 0 | 0 | (56.2) | 0 |
Stock purchases | (150) | $ 0 | $ (150) | 0 | 0 | 0 |
Stock purchases (in shares) | 0 | (2.1) | ||||
Stock based compensation expense and stock option plan transactions | 15.7 | $ 0 | $ 10.4 | 5.3 | 0 | 0 |
Stock based compensation expense and stock option plan transactions (in shares) | 0 | 0.4 | ||||
Ending Balance at Sep. 30, 2019 | 2,559.3 | $ 292.8 | $ (2,095.3) | 293.6 | 4,148.9 | (80.7) |
Ending Balance (in shares) at Sep. 30, 2019 | 292.8 | (47.6) | ||||
Beginning Balance at Dec. 31, 2019 | 2,667.8 | $ 292.8 | $ (2,091.2) | 295.5 | 4,237.4 | (66.7) |
Beginning Balance (in shares) at Dec. 31, 2019 | 292.8 | (47.4) | ||||
Net Income | 229.8 | $ 0 | $ 0 | 0 | 229.8 | 0 |
Other comprehensive income (loss) | (32.7) | 0 | 0 | 0 | 0 | (32.7) |
Cash dividends | (59) | 0 | 0 | 0 | (59) | 0 |
Stock based compensation expense and stock option plan transactions | 11.9 | $ 0 | $ 11.7 | 0.2 | 0 | 0 |
Stock based compensation expense and stock option plan transactions (in shares) | 0 | 0.3 | ||||
Ending Balance at Mar. 31, 2020 | 2,817.8 | $ 292.8 | $ (2,079.5) | 295.7 | 4,408.2 | (99.4) |
Ending Balance (in shares) at Mar. 31, 2020 | 292.8 | (47.1) | ||||
Beginning Balance at Dec. 31, 2019 | 2,667.8 | $ 292.8 | $ (2,091.2) | 295.5 | 4,237.4 | (66.7) |
Beginning Balance (in shares) at Dec. 31, 2019 | 292.8 | (47.4) | ||||
Net Income | 635.7 | |||||
Other comprehensive income (loss) | (24.1) | |||||
Ending Balance at Sep. 30, 2020 | 3,210.3 | $ 292.8 | $ (1,989.1) | 302 | 4,695.4 | (90.8) |
Ending Balance (in shares) at Sep. 30, 2020 | 292.8 | (44.5) | ||||
Beginning Balance at Mar. 31, 2020 | 2,817.8 | $ 292.8 | $ (2,079.5) | 295.7 | 4,408.2 | (99.4) |
Beginning Balance (in shares) at Mar. 31, 2020 | 292.8 | (47.1) | ||||
Net Income | 189.7 | $ 0 | $ 0 | 0 | 189.7 | 0 |
Other comprehensive income (loss) | 1.1 | 0 | 0 | 0 | 0 | 1.1 |
Cash dividends | (59.1) | 0 | 0 | 0 | (59.1) | 0 |
Stock based compensation expense and stock option plan transactions | 49.3 | $ 0 | $ 42.2 | 7.1 | 0 | 0 |
Stock based compensation expense and stock option plan transactions (in shares) | 0 | 1.2 | ||||
Ending Balance at Jun. 30, 2020 | 2,998.8 | $ 292.8 | $ (2,037.3) | 302.8 | 4,538.8 | (98.3) |
Ending Balance (in shares) at Jun. 30, 2020 | 292.8 | (45.9) | ||||
Net Income | 216.2 | $ 0 | $ 0 | 0 | 216.2 | 0 |
Other comprehensive income (loss) | 7.5 | 0 | 0 | 0 | 0 | 7.5 |
Cash dividends | (59.6) | 0 | 0 | 0 | (59.6) | 0 |
Stock based compensation expense and stock option plan transactions | 47.4 | $ 0 | $ 48.2 | (0.8) | 0 | 0 |
Stock based compensation expense and stock option plan transactions (in shares) | 0 | 1.4 | ||||
Ending Balance at Sep. 30, 2020 | $ 3,210.3 | $ 292.8 | $ (1,989.1) | $ 302 | $ 4,695.4 | $ (90.8) |
Ending Balance (in shares) at Sep. 30, 2020 | 292.8 | (44.5) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation These condensed consolidated financial statements have been prepared by Church & Dwight Co., Inc. (the “Company”). In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position and results of operations and cash flows for all periods presented have been made. Results of operations for interim periods may not be representative of results to be expected for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “Form 10-K”). The Company incurred research and development expenses in the third quarter of 2020 and 2019 of $27.0 and $24.5, respectively. The Company incurred research and development expenses in the first nine months of 2020 and 2019 of $73.3 and $67.6, respectively. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued accounting guidance (with subsequent targeted amendments) which modifies the measurements of expected credit losses for certain financial instruments and financial assets, including trade receivables. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The standard did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In March 2020, the FASB issued new accounting guidance intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This guidance was effective beginning on March 12, 2020, and the Company may apply the amendments prospectively to contract modifications made or relationships entered into or evaluated through December 31, 2022. The adoption of this guidance did not have an impact on the Company’s consolidated financial position, results of operations or cash flows in the current period. The Company will continue to evaluate the impacts of this guidance on future contract modifications. There have been no other accounting pronouncements issued but not yet adopted by the Company which are expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 3 . Inventories Inventories consist of the following: September 30, December 31, 2020 2019 Raw materials and supplies $ 108.6 $ 85.9 Work in process 31.6 29.0 Finished goods 357.5 302.5 Total $ 497.7 $ 417.4 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net ("PP&E") | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net ("PP&E") | 4 . Property, Plant and Equipment, Net (“PP&E”) PP&E consists of the following: September 30, December 31, 2020 2019 Land $ 28.2 $ 27.8 Buildings and improvements 258.7 255.4 Machinery and equipment 768.2 737.4 Software 100.4 96.7 Office equipment and other assets 82.0 76.0 Construction in progress 79.7 72.9 Gross PP&E 1,317.2 1,266.2 Less accumulated depreciation and amortization 737.7 693.2 Net PP&E $ 579.5 $ 573.0 Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Depreciation and amortization on PP&E $ 16.4 $ 16.0 $ 48.4 $ 47.9 |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | 5 . Earnings Per Share (“EPS”) Basic EPS is calculated based on income available to holders of the Company’s common stock (“Common Stock”) and the weighted average number of shares outstanding during the reported period. Diluted EPS includes additional dilution from potential Common Stock issuable pursuant to the exercise of outstanding stock options. The following table sets forth a reconciliation of the weighted average number of shares of Common Stock outstanding to the weighted average number of shares outstanding on a diluted basis: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Weighted average common shares outstanding - basic 247.7 246.8 246.5 246.4 Dilutive effect of stock options 5.6 6.1 5.5 6.1 Weighted average common shares outstanding - diluted 253.3 252.9 252.0 252.5 Antidilutive stock options outstanding 0.0 1.4 1.5 1.4 |
Stock Based Compensation Plans
Stock Based Compensation Plans | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation Plans | 6 . Stock Based Compensation Plans The following table provides a summary of option activity: Weighted Average Weighted Remaining Average Contractual Aggregate Exercise Term Intrinsic Options Price (in Years) Value Outstanding at December 31, 2019 14.0 $ 43.23 Granted 1.8 73.98 Exercised (2.9 ) 30.21 Cancelled (0.1 ) 62.17 Outstanding at September 30, 2020 12.8 $ 50.48 6.0 $ 553.2 Exercisable at September 30, 2020 7.6 $ 39.71 4.2 $ 410.2 The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Intrinsic Value of Stock Options Exercised $ 84.7 $ 15.7 $ 153.6 $ 87.6 Stock Compensation Expense Related to Stock Option Awards $ 2.9 $ 2.7 $ 18.3 $ 17.2 Issued Stock Options 0.0 0.0 1.8 1.4 Weighted Average Fair Value of Stock Options issued (per share) $ 0.0 $ 0.0 $ 12.75 $ 14.94 Fair Value of Stock Options Issued $ 0.0 $ 0.0 $ 23.8 $ 21.3 The following table provides a summary of the assumptions used in the valuation of issued stock options: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Risk-free interest rate - - 0.5 % 2.1 % Expected life in years - - 7.3 7.3 Expected volatility - - 19.8 % 17.2 % Dividend yield - - 1.3 % 1.2 % |
Share Repurchases
Share Repurchases | 9 Months Ended |
Sep. 30, 2020 | |
Payments For Repurchase Of Equity [Abstract] | |
Share Repurchases | 7. Share Repurchases On November 1, 2017, the Board authorized a share repurchase program, under which the Company may repurchase up to $500.0 in shares of Common Stock (the “2017 Share Repurchase Program”). The 2017 Share Repurchase Program does not have an expiration. The Company also continued its evergreen share repurchase program, authorized by the Board on January 29, 2014, under which the Company may repurchase, from time to time, Common Stock to reduce or eliminate dilution associated with issuances of Common Stock under the Company’s incentive plans The Company did not repurchase any shares of its common stock in the first nine months of 2020. As a result of the Company’s stock repurchases in recent years, there remains $210.0 of share repurchase availability under the 2017 Share Repurchase Program as of September 30, 2020. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Input Carrying Fair Carrying Fair Level Amount Value Amount Value Financial Assets: Cash equivalents Level 1 $ 352.2 $ 352.2 $ 65.3 $ 65.3 Financial Liabilities: Short-term borrowings Level 2 1.6 1.6 252.9 252.9 Term loan due May 1, 2022 Level 2 300.0 300.0 300.0 300.0 2.45% Senior notes due August 1, 2022 Level 2 299.9 310.1 299.8 302.6 2.875% Senior notes due October 1, 2022 Level 2 399.9 418.8 399.9 408.2 3.15% Senior notes due August 1, 2027 Level 2 424.7 470.0 424.7 438.9 3.95% Senior notes due August 1, 2047 Level 2 397.4 471.3 397.3 427.1 Interest Rate Swap Lock Agreement asset (liability) Level 2 (64.8 ) (64.8 ) (29.5 ) (29.5 ) Business Acquisition Liabilities Level 3 120.0 120.0 206.2 206.2 The Company recognizes transfers between input levels as of the actual date of the event. There were no transfers between input levels during the nine months ended September 30, 2020. Refer to Note 2 in the Form 10-K for a description of the methods and assumptions used to estimate the fair value of each class of financial instruments reflected in the c ondensed c onsolidated b alance s heets. The business acquisition liabilities represent the estimated fair value of additional future contingent consideration payable for acquisitions of businesses that included contingent consideration clauses. The fair value of the contingent consideration is evaluated on an ongoing basis and is based on management estimates and entity-specific assumptions which are considered Level 3 inputs. In the nine-months ended September 30, 2020, the Company decreased the fair value estimate of the contingent consideration liability for the Flawless Acquisition (as defined in Note 10) by $72.0 from $192.0 to $120.0 based on the revised valuation due to updated sales forecasts. The $72.0 reduction of SG&A expense was recorded within the Consumer Domestic and Consumer International segments. The Flawless Acquisition contingent consideration is expected to be paid in the first half of 2022. The business acquisition liabilities for December 31, 2019 also included a $14.2 liability in connection with the acquisition of Agro BioSciences, Inc. on January 17, 2017 (the “Agro Acquisition”). The Agro Acquisition contingent consideration was paid in the second quarter of 2020. As of December 31, 2019, the Agro Acquisition liability was recorded within Accounts Payable and Accrued Expenses. The interest rate swap lock agreements are used to hedge the risk of changes in the interest payments attributable to changes in the benchmark U.S. Dollar LIBOR interest rate associated with anticipated issuances of debt. The liability increased by $35.3 during the first nine months of 2020 primarily due to lower current and projected interest rates and is recorded in Deferred and Other Long-term Liabilities with the offset to Accumulated Other Comprehensive Loss and Deferred Taxes. The carrying amounts of accounts receivable, and accounts payable and accrued expenses, approximated estimated fair values as of September 30, 2020 and December 31, 2019. |
Derivative Instruments and Risk
Derivative Instruments and Risk Management | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Risk Management | 9 . Derivative Instruments and Risk Management Changes in interest rates, foreign exchange rates, the price of the Common Stock and commodity prices expose the Company to market risk. The Company manages these risks by the use of derivative instruments, such as cash flow and fair value hedges, diesel and commodity hedge contracts, equity derivatives and foreign exchange forward contracts. The Company does not use derivatives for trading or speculative purposes. Refer to Note 3 in the Form 10-K for a discussion of each of the Company’s derivative instruments in effect as of December 31, 2019. The notional amount of a derivative instrument is the nominal or face amount used to calculate payments made on that instrument. Notional amounts are presented in the following table: Notional Notional Amount Amount September 30, 2020 December 31, 2019 Derivatives designated as hedging instruments Foreign exchange contracts $ 226.7 $ 216.0 Interest rate swap lock $ 300.0 $ 300.0 Diesel fuel contracts 4.7 gallons 4.8 gallons Commodities contracts 99.0 pounds 81.2 pounds Derivatives not designated as hedging instruments Equity derivatives $ 22.1 $ 22.1 Excluding the Interest Rate Swap Lock Agreement disclosed in Note 8, the fair values and amount of gain (loss) recognized in income and Other Comprehensive Income (“OCI”) associated with the derivative instruments disclosed above did not have a material impact on the Company’s condensed consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 10. Acquisitions On May 1, 2019, the Company closed on its previously announced acquisition of the FLAWLESS hair removal business (the “Flawless Acquisition”) from Ideavillage Products Corporation (“Ideavillage”). The Company paid $475.0 at closing and may make an additional contingent consideration payment twelve-month three-year The fair values of the net assets acquired are set forth as follows: Trade name $ 447.3 Other intangible assets 121.8 Goodwill 87.9 Contingent consideration (182.0 ) Cash purchase price $ 475.0 As a result of the Company purchasing assets, the goodwill and other intangible assets associated with the Flawless Acquisition are deductible for U.S. tax purposes. The trade names and other intangible assets were valued using a discounted cash flow model. The life of the amortizable intangible assets recognized from the Flawless Acquisition ranges from 15 - 20 years. The goodwill is a result of expected synergies from combined operations of the acquired business and the Company. Pro forma results are not presented because the impact of the acquisition is not material to the Company’s consolidated financial results. Ideavillage will continue to help support the business through a separate long-term transition services agreement. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, Net | 1 1 . Goodwill and Other Intangibles, Net The following table provides information related to the carrying value of all intangible assets, other than goodwill: September 30, 2020 December 31, 2019 Gross Amortization Gross Carrying Accumulated Period Carrying Accumulated Amount Amortization Net (Years) Amount Amortization Net Amortizable intangible assets: Trade Names $ 1,021.0 $ (254.9 ) $ 766.1 3-20 $ 1,025.8 $ (219.7 ) $ 806.1 Customer Relationships 584.8 (281.9 ) 302.9 15-20 584.8 (255.0 ) 329.8 Patents/Formulas 211.4 (82.1 ) 129.3 4-20 211.4 (73.0 ) 138.4 Non-Compete Agreement 0.0 0.0 0.0 5-10 0.4 (0.4 ) 0.0 Total $ 1,817.2 $ (618.9 ) $ 1,198.3 $ 1,822.4 $ (548.1 ) $ 1,274.3 Indefinite Lived Intangible Assets - Gross Carrying Amount September 30, December 31, 2020 2019 Trade Names $ 1,475.8 $ 1,475.7 Intangible amortization expense was $24.4 and $25.2 for the third quarter of 2020 and 2019, respectively. Intangible amortization expense amounted to $73.4 and $65.5 for the first nine months of 2020 and 2019, respectively. The Company estimates that intangible amortization expense will be approximately $98.0 in 2020 and approximately $96.0 to $88.0 annually over the next five years. During the first quarter of 2020, the Company sold its PERL WEISS® toothpaste brand in Germany with a tradename net book value of $2.7 and corresponding goodwill of $1.3 for cash proceeds of $7.0. The $3.0 gain associated with this transaction was recorded as a reduction of SG&A expense in the Consumer International segment. Fair value for indefinite lived intangible assets 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 and discount rates. The Company determined that the fair value of all indefinite lived intangible assets for each of the years in the three-year period ended December 31, 2019 exceeded their respective carrying values based upon the forecasted cash flows and profitability. However, in recent years the Company’s TROJAN business, specifically the condom category, has not grown and competition has increased resulting in a reduction in expected future cash flows. As a result, the TROJAN business has experienced sales and profit declines that has eroded a portion of the excess between fair and carrying value, which could potentially result in an impairment of the tradename. The carrying value of the TROJAN tradename is $176.4. As of December 31, 2019, fair value exceeded carrying value by 26%. Key assumptions used in the projections include discount rates of 9.5% in the U.S. and 11.5% internationally, growth assumptions of 0% to 2% and an average royalty rate of approximately 10%. This indefinite-lived intangible asset is susceptible to impairment risk. While management can and has implemented strategies to address the risk, including lowering the Company’s production costs, investing in new product ideas, and developing new creative advertising, significant changes in operating plans or adverse changes in the future could reduce the underlying cash flows used to estimate fair value. This could result in a decline in fair value that could trigger a future impairment charge of the tradename. The Company’s indefinite lived intangible impairment review is completed in the fourth quarter of each year. The Company has continued to experience a significant increase in consumer demand for many of its products that began in March of 2020, including VITAFUSION gummy vitamins, SIMPLY SALINE and STERIMAR nasal hygiene products, A&H baking soda, and A&H cat litter and KABOOM bathroom cleaners. On the other hand, some other personal care brands have been negatively impacted by the temporary closures of certain non-essential retailers and the reduction of consumer foot traffic at retailers from which these brands derive a significant proportion of sales. The Company’s WATERPIK business had been negatively impacted by the temporary closure of dental offices across the United States in the first half of the year but has recently had positive sales growth as dental offices have re-opened. The Company is monitoring the impact the pandemic and the associated governmental response is having on its customers and consumer demand, as well as the potential impact on the Company’s short and long term cash flows as it relates to its intangible asset carrying values. In addition, the Company’s Passport Food Safety business, under pressure as a result of the The carrying amount of goodwill is as follows: Consumer Consumer Specialty Domestic International Products Total Balance at December 31, 2019 $ 1,707.9 $ 235.6 $ 136.0 $ 2,079.5 PERL WEISS divestiture 0.0 (1.3 ) 0.0 (1.3 ) Balance at September 30, 2020 $ 1,707.9 $ 234.3 $ 136.0 $ 2,078.2 The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2020, 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. The Company has never incurred a goodwill impairment charge. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 1 2 . Leases The Company leases certain manufacturing facilities, warehouses, office space, railcars and equipment. Leases with an initial term of twelve months or less are not recorded on the condensed consolidated balance sheet. All recorded leases are classified as operating leases and lease expense is recognized on a straight-line basis over the lease term. For leases beginning in 2019, lease components (base rental costs) are accounted for separately from the nonlease components (e.g., common-area maintenance costs). For leases that do not provide an implicit rate, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. A summary of the Company’s lease information is as follows: September 30, December 31, Classification 2020 2019 Assets Right of use assets Other Assets $ 154.9 $ 150.7 Liabilities Current lease liabilities Accounts Payable and Accrued Expenses $ 19.0 $ 16.4 Long-term lease liabilities Deferred and Other Long-term Liabilities 146.5 144.0 Total lease liabilities $ 165.5 $ 160.4 Other information Weighted-average remaining lease term (years) 10.7 11.1 Weighted-average discount rate 4.8 % 4.9 % Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Statement of Income Lease cost (1) $ 6.6 $ 6.5 $ 20.0 $ 18.1 Other information Leased assets obtained in exchange for new lease liabilities (2) $ 2.2 $ 2.0 $ 18.7 $ 59.1 Cash paid for amounts included in the measurement of lease liabilities $ 6.3 $ 6.1 $ 18.9 $ 18.2 (1) Lease expense is included in cost of sales or SG&A expenses based on the nature of the leased item. Short-term lease expense is excluded from this amount and is not material. The Company also has certain variable leases which are not material. The noncash component of lease expense for the first nine months of 2020 and 2019 was $14.4 and $13.2, respectively, and is included in the Amortization caption in the condensed consolidated statement of cash flows. (2) In March 2020, the Company approved a capital project to purchase additional machinery and equipment at one of its leased manufacturing facilities. This led to a lease modification to include a renewal option that would extend the lease for an additional five years through 2029. The modification resulted in an increase to the Company’s right of use assets and corresponding lease liabilities of approximately $7.3 recorded in the first quarter of 2020. In June 2019, the Company amended an operating lease for one of its manufacturing facilities to extend the lease an additional ten years through 2033. The amendment resulted in an increase to the Company’s right of use assets and corresponding lease liabilities of approximately $53.0 recorded in the second quarter of 2019. The Company’s minimum annual rentals including reasonably assured renewal options under lease agreements are as follows: Operating Leases 2020 $ 6.0 2021 26.4 2022 24.1 2023 18.4 2024 16.7 2025 and thereafter 121.8 Total future minimum lease commitments 213.4 Less: Imputed Interest (47.9 ) Present value of lease liabilities $ 165.5 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 1 3 . Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: September 30, December 31, 2020 2019 Trade accounts payable $ 580.8 $ 473.3 Accrued marketing and promotion costs 188.0 138.1 Accrued wages and related benefit costs 89.4 96.5 Other accrued current liabilities 97.6 124.0 Total $ 955.8 $ 831.9 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | 1 4 . Short-Term Borrowings and Long-Term Debt Short-term borrowings and long-term debt consist of the following: September 30, December 31, 2020 2019 Short-term borrowings Commercial paper issuances $ 0.0 $ 248.6 Various debt due to international banks 1.6 4.3 Total short-term borrowings $ 1.6 $ 252.9 Long-term debt Term loan due May 1, 2022 300.0 300.0 2.45% Senior notes due August 1, 2022 300.0 300.0 Less: Discount (0.1 ) (0.2 ) 2.875% Senior notes due October 1, 2022 400.0 400.0 Less: Discount (0.1 ) (0.1 ) 3.15% Senior notes due August 1, 2027 425.0 425.0 Less: Discount (0.3 ) (0.3 ) 3.95% Senior notes due August 1, 2047 400.0 400.0 Less: Discount (2.6 ) (2.7 ) Debt issuance costs, net (10.0 ) (11.5 ) Net long-term debt $ 1,811.9 $ 1,810.2 The Company |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 1 5 . Accumulated Other Comprehensive Income (Loss) The components of changes in accumulated other comprehensive income (loss) are as follows: Accumulated Foreign Defined Other Currency Benefit Derivative Comprehensive Adjustments Plans Agreements Income (Loss) Balance at December 31, 2018 $ (42.5 ) $ 0.9 $ (12.0 ) $ (53.6 ) Other comprehensive income (loss) before reclassifications (4.1 ) 0.0 (37.1 ) (41.2 ) Amounts reclassified to consolidated statement of income (a) (b) 1.9 0.0 3.8 5.7 Tax benefit (expense) 0.0 0.0 8.4 8.4 Other comprehensive income (loss) (2.2 ) 0.0 (24.9 ) (27.1 ) Balance at September 30, 2019 $ (44.7 ) $ 0.9 $ (36.9 ) $ (80.7 ) Balance at December 31, 2019 $ (36.8 ) $ 0.0 $ (29.9 ) $ (66.7 ) Other comprehensive income (loss) before reclassifications (0.4 ) 0.0 (36.7 ) (37.1 ) Amounts reclassified to consolidated statement of income (a) (b) 0.0 0.0 4.1 4.1 Tax benefit (expense) 0.0 0.0 8.9 8.9 Other comprehensive income (loss) (0.4 ) 0.0 (23.7 ) (24.1 ) Balance at September 30, 2020 $ (37.2 ) $ 0.0 $ (53.6 ) $ (90.8 ) (a) Amounts reclassified to cost of sales, selling, general and administrative expenses or interest expense. (b) The Company reclassified a loss of $2.2 and a loss of $2.8 to the condensed consolidated statement of income during the three months ended September 30, 2020 and 2019, respectively. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | 16 . Commitments, Contingencies and Guarantees Commitments a. The Company has a partnership with a supplier of raw materials that mines and processes sodium-based mineral deposits. The Company purchases the majority of its sodium-based raw material requirements from the partnership. The partnership agreement terminates upon two years’ written notice by either partner. Under the partnership agreement, the Company has an annual commitment to purchase 240,000 tons of sodium-based raw materials at the prevailing market price. The Company is not engaged in any other material transactions with the partnership or the partner supplier. b. As of September 30, 2020, the Company had commitments of approximately $ 284.3 c. As of September 30, 2020, the Company had various guarantees and letters of credit totaling $4.1. d. In connection with the Company’s acquisition of Agro BioSciences, Inc. on January 17, 2017, the Company was obligated to pay an additional amount of up to $25.0 based on sales performance in 2019. The initial fair value of this contingent liability was $17.8, which was established in the purchase price allocation. In April 2020, a payment of $14.5 was paid to settle the liability. In connection with the acquisition in 2018 of Passport Food Safety Solutions, Inc. (the “Passport Acquisition”), the Company is obligated to pay an additional amount of up to $25.0 based on sales performance through 2020. The initial fair value of this contingent liability was $7.3, which was established in the purchase price allocation. During the second quarter of 2019, the Company recorded a reduction in fair value of the entire $7.3 Passport contingent liability based on the revised valuation due to updated sales forecasts. The reduction was recorded in SG&A in the SPD segment. There was no change in the contingent liability in the first nine months of 2020 and it will be reassessed at December 31, 2020. In connection with the Flawless Acquisition, the Company is obligated to pay an additional amount of up to $425.0 based on sales performance through 2021. The initial fair value of this contingent liability of $182.0 was established in the purchase price allocation. During the three and nine months ended September 30, 2020 the Company reduced the fair value of the contingent liability associated with the Flawless Acquisition by $51.0 and $72.0, respectively, based on updated sales forecasts. As a result of these adjustments and further adjustments in 2019, the fair value of this contingent liability was $120.0 as of September 30, 2020. The change in fair value was recorded within the Consumer Domestic and Consumer International segments. The contingent liability is remeasured at each balance sheet date until the contingency is resolved. The liability is expected to be paid in the first half of 2022. Legal proceedings e. The Company was named as a defendant in a breach of contract action filed by Scantibodies Laboratory, Inc. (the “Plaintiff”) on April 1, 2014, in the U.S. District Court for the Southern District of New York. The complaint alleged, among other things, that the Company (i) breached two agreements for the manufacture and supply of pregnancy and ovulation test kits by switching suppliers, (ii) failed to give Plaintiff the proper notice, (iii) failed to reimburse Plaintiff for costs and expenses under the agreements and (iv) misrepresented its future requirements. The complaint sought compensatory and punitive damages in an amount in excess of $20.0, as well as declaratory relief, statutory prejudgment interest and attorneys’ fees and costs. On September 19, 2018, the trial court granted the Company’s motion for summary judgment, dismissing all claims brought by the Plaintiff as a matter of law. The Plaintiff appealed that decision, and the 2 nd f. In addition, in conjunction with the Company’s acquisition and divestiture activities, the Company entered into select guarantees and indemnifications of performance with respect to the fulfillment of the Company’s commitments under applicable purchase and sale agreements. The arrangements generally indemnify the buyer or seller for damages associated with breach of contract, inaccuracies in representations and warranties surviving the closing date and satisfaction of liabilities and commitments retained under the applicable contract. Representations and warranties that survive the closing date generally survive for periods up to five years or the expiration of the applicable statutes of limitations. Potential losses under the indemnifications are generally limited to a portion of the original transaction price, or to other lesser specific dollar amounts for select provisions. With respect to sale transactions, the Company also routinely enters into non-competition agreements for varying periods of time. Guarantees and indemnifications with respect to acquisition and divestiture activities, if triggered, could have a materially adverse impact on the Company’s financial condition, results of operations and cash flows. g. In addition to the matters described above, from time to time in the ordinary course of its business the Company is the subject of, or party to, various pending or threatened legal, regulatory or governmental actions or other proceedings, including, without limitation, those relating to, intellectual property, commercial transactions, product liability, purported consumer class actions, employment matters, antitrust, environmental, health, safety and other compliance related matters. Such proceedings are generally subject to considerable uncertainty and their outcomes, and any related damages, may not be reasonably predictable or estimable. Any such proceedings could result in an adverse outcome on the Company’s business, financial condition, results of operations or cash flows. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 7 . Related Party Transactions The following summarizes the balances and transactions between the Company and Armand Products Company (“Armand”) and The ArmaKleen Company (“ArmaKleen”), in each of which the Company holds a 50% ownership interest: Armand ArmaKleen Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Purchases by Company $ 10.7 $ 10.5 $ 0.0 $ 0.0 Sales by Company $ 0.0 $ 0.0 $ 0.7 $ 0.9 Outstanding Accounts Receivable $ 0.3 $ 0.3 $ 0.7 $ 0.7 Outstanding Accounts Payable $ 1.4 $ 1.2 $ 0.0 $ 0.0 Administration & Management Oversight Services (1) $ 1.6 $ 1.9 $ 1.6 $ 1.6 (1) Billed by the Company and recorded as a reduction of SG&A expenses. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments | 1 8 . Segments Segment Information The Company operates three reportable segments: Consumer Domestic, Consumer International and Specialty Products Division. These segments are determined based on differences in the nature of products and organizational and ownership structures. The Company also has a Corporate segment. Segment revenues are derived from the sale of the following products: Segment Products Consumer Domestic Household and personal care products Consumer International Primarily personal care products SPD Specialty chemical products The Corporate segment income consists of equity in earnings of affiliates. As of September 30, 2020, the Company held 50% ownership interests in each of Armand and ArmaKleen, respectively . Certain subsidiaries that are included in the Consumer International segment manufacture and sell personal care products to the Consumer Domestic segment. These sales are eliminated from the Consumer International segment results set forth in the table below. Segment net sales and income before income taxes are as follows: Consumer Consumer Domestic International SPD Corporate Total Net Sales (1) Third Quarter 2020 $ 954.6 $ 213.6 $ 72.8 $ 0.0 $ 1,241.0 Third Quarter 2019 827.6 186.4 75.4 0.0 1,089.4 First Nine Months of 2020 $ 2,776.7 $ 599.7 $ 224.1 $ 0.0 $ 3,600.5 First Nine Months of 2019 2,431.8 559.7 222.0 0.0 3,213.5 Income before Income Taxes (2) Third Quarter 2020 $ 220.6 $ 32.4 $ 6.6 $ 1.9 $ 261.5 Third Quarter 2019 165.9 22.1 10.5 2.1 200.6 First Nine Months of 2020 $ 671.8 $ 94.0 $ 25.6 $ 5.5 $ 796.9 First Nine Months of 2019 484.8 67.4 38.3 5.5 596.0 (1) Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $3.3 and $2.8 for the three months ended September 30, 2020 and September 30, 2019, respectively , and were $9.1 and $7.5 for the nine months ended September 30, 2020 and September 30, 2019, respectively. (2) In determining income before income taxes, interest expense, investment earnings and certain aspects of other income and expense were allocated among segments based upon each segment’s relative income from operations. Product line revenues from external customers are as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Household Products $ 501.4 $ 463.5 $ 1,540.4 $ 1,371.1 Personal Care Products 453.2 364.1 1,236.3 1,060.7 Total Consumer Domestic 954.6 827.6 2,776.7 2,431.8 Total Consumer International 213.6 186.4 599.7 559.7 Total SPD 72.8 75.4 224.1 222.0 Total Consolidated Net Sales $ 1,241.0 $ 1,089.4 $ 3,600.5 $ 3,213.5 Household Products include laundry, deodorizing and cleaning products. Personal Care Products include condoms, pregnancy kits, oral care products, skin care and hair care products and gummy dietary supplements. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Research and Development | The Company incurred research and development expenses in the third quarter of 2020 and 2019 of $27.0 and $24.5, respectively. The Company incurred research and development expenses in the first nine months of 2020 and 2019 of $73.3 and $67.6, respectively. |
New Accounting Pronouncements Adopted and Issued | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued accounting guidance (with subsequent targeted amendments) which modifies the measurements of expected credit losses for certain financial instruments and financial assets, including trade receivables. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The standard did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In March 2020, the FASB issued new accounting guidance intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This guidance was effective beginning on March 12, 2020, and the Company may apply the amendments prospectively to contract modifications made or relationships entered into or evaluated through December 31, 2022. The adoption of this guidance did not have an impact on the Company’s consolidated financial position, results of operations or cash flows in the current period. The Company will continue to evaluate the impacts of this guidance on future contract modifications. There have been no other accounting pronouncements issued but not yet adopted by the Company which are expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. |
Earnings Per Share ("EPS") | Basic EPS is calculated based on income available to holders of the Company’s common stock (“Common Stock”) and the weighted average number of shares outstanding during the reported period. Diluted EPS includes additional dilution from potential Common Stock issuable pursuant to the exercise of outstanding stock options. The following table sets forth a reconciliation of the weighted average number of shares of Common Stock outstanding to the weighted average number of shares outstanding on a diluted basis: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Weighted average common shares outstanding - basic 247.7 246.8 246.5 246.4 Dilutive effect of stock options 5.6 6.1 5.5 6.1 Weighted average common shares outstanding - diluted 253.3 252.9 252.0 252.5 Antidilutive stock options outstanding 0.0 1.4 1.5 1.4 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following: September 30, December 31, 2020 2019 Raw materials and supplies $ 108.6 $ 85.9 Work in process 31.6 29.0 Finished goods 357.5 302.5 Total $ 497.7 $ 417.4 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net ("PP&E") (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | PP&E consists of the following: September 30, December 31, 2020 2019 Land $ 28.2 $ 27.8 Buildings and improvements 258.7 255.4 Machinery and equipment 768.2 737.4 Software 100.4 96.7 Office equipment and other assets 82.0 76.0 Construction in progress 79.7 72.9 Gross PP&E 1,317.2 1,266.2 Less accumulated depreciation and amortization 737.7 693.2 Net PP&E $ 579.5 $ 573.0 Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Depreciation and amortization on PP&E $ 16.4 $ 16.0 $ 48.4 $ 47.9 |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Weighted Average Number Of Common Shares Outstanding | The following table sets forth a reconciliation of the weighted average number of shares of Common Stock outstanding to the weighted average number of shares outstanding on a diluted basis: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Weighted average common shares outstanding - basic 247.7 246.8 246.5 246.4 Dilutive effect of stock options 5.6 6.1 5.5 6.1 Weighted average common shares outstanding - diluted 253.3 252.9 252.0 252.5 Antidilutive stock options outstanding 0.0 1.4 1.5 1.4 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Option Activity | The following table provides a summary of option activity: Weighted Average Weighted Remaining Average Contractual Aggregate Exercise Term Intrinsic Options Price (in Years) Value Outstanding at December 31, 2019 14.0 $ 43.23 Granted 1.8 73.98 Exercised (2.9 ) 30.21 Cancelled (0.1 ) 62.17 Outstanding at September 30, 2020 12.8 $ 50.48 6.0 $ 553.2 Exercisable at September 30, 2020 7.6 $ 39.71 4.2 $ 410.2 |
Information Regarding Intrinsic Value of Stock Options Exercised and Stock Compensation Expense Related to Stock Option Awards | The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Intrinsic Value of Stock Options Exercised $ 84.7 $ 15.7 $ 153.6 $ 87.6 Stock Compensation Expense Related to Stock Option Awards $ 2.9 $ 2.7 $ 18.3 $ 17.2 Issued Stock Options 0.0 0.0 1.8 1.4 Weighted Average Fair Value of Stock Options issued (per share) $ 0.0 $ 0.0 $ 12.75 $ 14.94 Fair Value of Stock Options Issued $ 0.0 $ 0.0 $ 23.8 $ 21.3 |
Assumptions Used in Valuation of Issued Stock Options | The following table provides a summary of the assumptions used in the valuation of issued stock options: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Risk-free interest rate - - 0.5 % 2.1 % Expected life in years - - 7.3 7.3 Expected volatility - - 19.8 % 17.2 % Dividend yield - - 1.3 % 1.2 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Estimated 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 September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Input Carrying Fair Carrying Fair Level Amount Value Amount Value Financial Assets: Cash equivalents Level 1 $ 352.2 $ 352.2 $ 65.3 $ 65.3 Financial Liabilities: Short-term borrowings Level 2 1.6 1.6 252.9 252.9 Term loan due May 1, 2022 Level 2 300.0 300.0 300.0 300.0 2.45% Senior notes due August 1, 2022 Level 2 299.9 310.1 299.8 302.6 2.875% Senior notes due October 1, 2022 Level 2 399.9 418.8 399.9 408.2 3.15% Senior notes due August 1, 2027 Level 2 424.7 470.0 424.7 438.9 3.95% Senior notes due August 1, 2047 Level 2 397.4 471.3 397.3 427.1 Interest Rate Swap Lock Agreement asset (liability) Level 2 (64.8 ) (64.8 ) (29.5 ) (29.5 ) Business Acquisition Liabilities Level 3 120.0 120.0 206.2 206.2 |
Derivative Instruments and Ri_2
Derivative Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts | The notional amount of a derivative instrument is the nominal or face amount used to calculate payments made on that instrument. Notional amounts are presented in the following table: Notional Notional Amount Amount September 30, 2020 December 31, 2019 Derivatives designated as hedging instruments Foreign exchange contracts $ 226.7 $ 216.0 Interest rate swap lock $ 300.0 $ 300.0 Diesel fuel contracts 4.7 gallons 4.8 gallons Commodities contracts 99.0 pounds 81.2 pounds Derivatives not designated as hedging instruments Equity derivatives $ 22.1 $ 22.1 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Flawless Acquisition | |
Fair Values of Assets Acquired | The fair values of the net assets acquired are set forth as follows: Trade name $ 447.3 Other intangible assets 121.8 Goodwill 87.9 Contingent consideration (182.0 ) Cash purchase price $ 475.0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets | The following table provides information related to the carrying value of all intangible assets, other than goodwill: September 30, 2020 December 31, 2019 Gross Amortization Gross Carrying Accumulated Period Carrying Accumulated Amount Amortization Net (Years) Amount Amortization Net Amortizable intangible assets: Trade Names $ 1,021.0 $ (254.9 ) $ 766.1 3-20 $ 1,025.8 $ (219.7 ) $ 806.1 Customer Relationships 584.8 (281.9 ) 302.9 15-20 584.8 (255.0 ) 329.8 Patents/Formulas 211.4 (82.1 ) 129.3 4-20 211.4 (73.0 ) 138.4 Non-Compete Agreement 0.0 0.0 0.0 5-10 0.4 (0.4 ) 0.0 Total $ 1,817.2 $ (618.9 ) $ 1,198.3 $ 1,822.4 $ (548.1 ) $ 1,274.3 |
Indefinite Lived Intangible Assets | Indefinite Lived Intangible Assets - Gross Carrying Amount September 30, December 31, 2020 2019 Trade Names $ 1,475.8 $ 1,475.7 |
Carrying Amount of Goodwill | The carrying amount of goodwill is as follows: Consumer Consumer Specialty Domestic International Products Total Balance at December 31, 2019 $ 1,707.9 $ 235.6 $ 136.0 $ 2,079.5 PERL WEISS divestiture 0.0 (1.3 ) 0.0 (1.3 ) Balance at September 30, 2020 $ 1,707.9 $ 234.3 $ 136.0 $ 2,078.2 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of Lease Information | A summary of the Company’s lease information is as follows: September 30, December 31, Classification 2020 2019 Assets Right of use assets Other Assets $ 154.9 $ 150.7 Liabilities Current lease liabilities Accounts Payable and Accrued Expenses $ 19.0 $ 16.4 Long-term lease liabilities Deferred and Other Long-term Liabilities 146.5 144.0 Total lease liabilities $ 165.5 $ 160.4 Other information Weighted-average remaining lease term (years) 10.7 11.1 Weighted-average discount rate 4.8 % 4.9 % Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Statement of Income Lease cost (1) $ 6.6 $ 6.5 $ 20.0 $ 18.1 Other information Leased assets obtained in exchange for new lease liabilities (2) $ 2.2 $ 2.0 $ 18.7 $ 59.1 Cash paid for amounts included in the measurement of lease liabilities $ 6.3 $ 6.1 $ 18.9 $ 18.2 (1) Lease expense is included in cost of sales or SG&A expenses based on the nature of the leased item. Short-term lease expense is excluded from this amount and is not material. The Company also has certain variable leases which are not material. The noncash component of lease expense for the first nine months of 2020 and 2019 was $14.4 and $13.2, respectively, and is included in the Amortization caption in the condensed consolidated statement of cash flows. (2) In March 2020, the Company approved a capital project to purchase additional machinery and equipment at one of its leased manufacturing facilities. This led to a lease modification to include a renewal option that would extend the lease for an additional five years through 2029. The modification resulted in an increase to the Company’s right of use assets and corresponding lease liabilities of approximately $7.3 recorded in the first quarter of 2020. In June 2019, the Company amended an operating lease for one of its manufacturing facilities to extend the lease an additional ten years through 2033. The amendment resulted in an increase to the Company’s right of use assets and corresponding lease liabilities of approximately $53.0 recorded in the second quarter of 2019. |
Summary of Minimum Annual Rentals Including Reasonably Assured Renewal Options under Lease Agreements | The Company’s minimum annual rentals including reasonably assured renewal options under lease agreements are as follows: Operating Leases 2020 $ 6.0 2021 26.4 2022 24.1 2023 18.4 2024 16.7 2025 and thereafter 121.8 Total future minimum lease commitments 213.4 Less: Imputed Interest (47.9 ) Present value of lease liabilities $ 165.5 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: September 30, December 31, 2020 2019 Trade accounts payable $ 580.8 $ 473.3 Accrued marketing and promotion costs 188.0 138.1 Accrued wages and related benefit costs 89.4 96.5 Other accrued current liabilities 97.6 124.0 Total $ 955.8 $ 831.9 |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Components of Short-Term Borrowings and Long-Term Debt | Short-term borrowings and long-term debt consist of the following: September 30, December 31, 2020 2019 Short-term borrowings Commercial paper issuances $ 0.0 $ 248.6 Various debt due to international banks 1.6 4.3 Total short-term borrowings $ 1.6 $ 252.9 Long-term debt Term loan due May 1, 2022 300.0 300.0 2.45% Senior notes due August 1, 2022 300.0 300.0 Less: Discount (0.1 ) (0.2 ) 2.875% Senior notes due October 1, 2022 400.0 400.0 Less: Discount (0.1 ) (0.1 ) 3.15% Senior notes due August 1, 2027 425.0 425.0 Less: Discount (0.3 ) (0.3 ) 3.95% Senior notes due August 1, 2047 400.0 400.0 Less: Discount (2.6 ) (2.7 ) Debt issuance costs, net (10.0 ) (11.5 ) Net long-term debt $ 1,811.9 $ 1,810.2 Company |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Components of Changes in Accumulated Other Comprehensive Income (Loss) | The components of changes in accumulated other comprehensive income (loss) are as follows: Accumulated Foreign Defined Other Currency Benefit Derivative Comprehensive Adjustments Plans Agreements Income (Loss) Balance at December 31, 2018 $ (42.5 ) $ 0.9 $ (12.0 ) $ (53.6 ) Other comprehensive income (loss) before reclassifications (4.1 ) 0.0 (37.1 ) (41.2 ) Amounts reclassified to consolidated statement of income (a) (b) 1.9 0.0 3.8 5.7 Tax benefit (expense) 0.0 0.0 8.4 8.4 Other comprehensive income (loss) (2.2 ) 0.0 (24.9 ) (27.1 ) Balance at September 30, 2019 $ (44.7 ) $ 0.9 $ (36.9 ) $ (80.7 ) Balance at December 31, 2019 $ (36.8 ) $ 0.0 $ (29.9 ) $ (66.7 ) Other comprehensive income (loss) before reclassifications (0.4 ) 0.0 (36.7 ) (37.1 ) Amounts reclassified to consolidated statement of income (a) (b) 0.0 0.0 4.1 4.1 Tax benefit (expense) 0.0 0.0 8.9 8.9 Other comprehensive income (loss) (0.4 ) 0.0 (23.7 ) (24.1 ) Balance at September 30, 2020 $ (37.2 ) $ 0.0 $ (53.6 ) $ (90.8 ) (a) Amounts reclassified to cost of sales, selling, general and administrative expenses or interest expense. (b) The Company reclassified a loss of $2.2 and a loss of $2.8 to the condensed consolidated statement of income during the three months ended September 30, 2020 and 2019, respectively. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following summarizes the balances and transactions between the Company and Armand Products Company (“Armand”) and The ArmaKleen Company (“ArmaKleen”), in each of which the Company holds a 50% ownership interest: Armand ArmaKleen Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Purchases by Company $ 10.7 $ 10.5 $ 0.0 $ 0.0 Sales by Company $ 0.0 $ 0.0 $ 0.7 $ 0.9 Outstanding Accounts Receivable $ 0.3 $ 0.3 $ 0.7 $ 0.7 Outstanding Accounts Payable $ 1.4 $ 1.2 $ 0.0 $ 0.0 Administration & Management Oversight Services (1) $ 1.6 $ 1.9 $ 1.6 $ 1.6 (1) Billed by the Company and recorded as a reduction of SG&A expenses. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Selected Financial Information Relating To Company's Segments | Segment net sales and income before income taxes are as follows: Consumer Consumer Domestic International SPD Corporate Total Net Sales (1) Third Quarter 2020 $ 954.6 $ 213.6 $ 72.8 $ 0.0 $ 1,241.0 Third Quarter 2019 827.6 186.4 75.4 0.0 1,089.4 First Nine Months of 2020 $ 2,776.7 $ 599.7 $ 224.1 $ 0.0 $ 3,600.5 First Nine Months of 2019 2,431.8 559.7 222.0 0.0 3,213.5 Income before Income Taxes (2) Third Quarter 2020 $ 220.6 $ 32.4 $ 6.6 $ 1.9 $ 261.5 Third Quarter 2019 165.9 22.1 10.5 2.1 200.6 First Nine Months of 2020 $ 671.8 $ 94.0 $ 25.6 $ 5.5 $ 796.9 First Nine Months of 2019 484.8 67.4 38.3 5.5 596.0 (1) Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $3.3 and $2.8 for the three months ended September 30, 2020 and September 30, 2019, respectively , and were $9.1 and $7.5 for the nine months ended September 30, 2020 and September 30, 2019, respectively. (2) In determining income before income taxes, interest expense, investment earnings and certain aspects of other income and expense were allocated among segments based upon each segment’s relative income from operations. |
Product Line Revenues From External Customers | Product line revenues from external customers are as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Household Products $ 501.4 $ 463.5 $ 1,540.4 $ 1,371.1 Personal Care Products 453.2 364.1 1,236.3 1,060.7 Total Consumer Domestic 954.6 827.6 2,776.7 2,431.8 Total Consumer International 213.6 186.4 599.7 559.7 Total SPD 72.8 75.4 224.1 222.0 Total Consolidated Net Sales $ 1,241.0 $ 1,089.4 $ 3,600.5 $ 3,213.5 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Research and development expenses | $ 27 | $ 24.5 | $ 73.3 | $ 67.6 |
Components of Inventories (Deta
Components of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory, Finished Goods and Work in Process, Net of Reserves [Abstract] | ||
Raw materials and supplies | $ 108.6 | $ 85.9 |
Work in process | 31.6 | 29 |
Finished goods | 357.5 | 302.5 |
Total | $ 497.7 | $ 417.4 |
Components of Property, Plant a
Components of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 1,317.2 | $ 1,266.2 |
Less accumulated depreciation and amortization | 737.7 | 693.2 |
Net PP&E | 579.5 | 573 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 28.2 | 27.8 |
Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 258.7 | 255.4 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 768.2 | 737.4 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 100.4 | 96.7 |
Office equipment and other assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 82 | 76 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 79.7 | $ 72.9 |
Depreciation and Interest Charg
Depreciation and Interest Charges on Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization on PP&E | $ 16.4 | $ 16 | $ 48.4 | $ 47.9 |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Number of Shares of Common Stock Outstanding (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding - Basic | 247.7 | 246.8 | 246.5 | 246.4 |
Dilutive effect of stock options | 5.6 | 6.1 | 5.5 | 6.1 |
Weighted average common shares outstanding - diluted | 253.3 | 252.9 | 252 | 252.5 |
Antidilutive stock options outstanding | 0 | 1.4 | 1.5 | 1.4 |
Summary of Option Activity (Det
Summary of Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Beginning Balance, Options | shares | 14 |
Granted, Options | shares | 1.8 |
Exercised, Options | shares | (2.9) |
Cancelled, Options | shares | (0.1) |
Ending Balance, Options | shares | 12.8 |
Exercisable at September 30, 2020, Options | shares | 7.6 |
Beginning Balance, Weighted-Average Exercise Price | $ / shares | $ 43.23 |
Granted, Weighted-Average Exercise Price | $ / shares | 73.98 |
Exercised, Weighted-Average Exercise Price | $ / shares | 30.21 |
Cancelled, Weighted-Average Exercise Price | $ / shares | 62.17 |
Ending Balance, Weighted-Average Exercise Price | $ / shares | 50.48 |
Exercisable at September 30, 2020 Weighted-Average Exercise Price | $ / shares | $ 39.71 |
Outstanding at September 30, 2020, Weighted-Average Remaining Contractual Term, years | 6 years |
Exercisable at September 30, 2020, Weighted-Average Remaining Contractual Term, years | 4 years 2 months 12 days |
Outstanding at September 30, 2020, Aggregate Intrinsic Value | $ | $ 553.2 |
Exercisable at September 30, 2020, Aggregate Intrinsic Value | $ | $ 410.2 |
Schedule of Share Based Compens
Schedule of Share Based Compensation Stock Options (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Intrinsic Value of Stock Options Exercised | $ 84.7 | $ 15.7 | $ 153.6 | $ 87.6 |
Stock Compensation Expense Related to Stock Option Awards | $ 2.9 | $ 2.7 | $ 18.3 | $ 17.2 |
Issued Stock Options | 0 | 0 | 1.8 | 1.4 |
Weighted Average Fair Value of Stock Options issued (per share) | $ 0 | $ 0 | $ 12.75 | $ 14.94 |
Fair Value of Stock Options Issued | $ 0 | $ 0 | $ 23.8 | $ 21.3 |
Assumptions Used in Valuation o
Assumptions Used in Valuation of Issued Stock Options (Details) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 0.50% | 2.10% |
Expected life in years | 7 years 3 months 18 days | 7 years 3 months 18 days |
Expected volatility | 19.80% | 17.20% |
Dividend yield | 1.30% | 1.20% |
Share Repurchases - Additional
Share Repurchases - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Nov. 01, 2017 | |
Equity Class Of Treasury Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 500 | |
Shares repurchase | 0 | |
Repurchase Program | ||
Equity Class Of Treasury Stock [Line Items] | ||
Remaining amount of share repurchase program | $ 210 |
Carrying Amounts and Estimated
Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Short-term borrowings | $ 1.6 | $ 252.9 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 352.2 | 65.3 |
Short-term borrowings | 1.6 | 252.9 |
Business Acquisition Liabilities | 120 | 206.2 |
Fair Value | Fair Value, Inputs, Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 352.2 | 65.3 |
Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Short-term borrowings | 1.6 | 252.9 |
Fair Value | Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Business Acquisition Liabilities | 120 | 206.2 |
Interest Rate Swap Lock Agreement Asset (Liability) | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Lock Agreement asset (liability) | (64.8) | (29.5) |
Interest Rate Swap Lock Agreement Asset (Liability) | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Lock Agreement asset (liability) | (64.8) | (29.5) |
Term Loan Due May 1, 2022 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term loan | 300 | 300 |
Term Loan Due May 1, 2022 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term loan | 300 | 300 |
2.45% Senior notes due August 1, 2022 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 299.9 | 299.8 |
2.45% Senior notes due August 1, 2022 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 310.1 | 302.6 |
2.875% Senior notes due October 1, 2022 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 399.9 | 399.9 |
2.875% Senior notes due October 1, 2022 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 418.8 | 408.2 |
3.15% Senior notes due August 1, 2027 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 424.7 | 424.7 |
3.15% Senior notes due August 1, 2027 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 470 | 438.9 |
3.95% Senior notes due August 1, 2047 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 397.4 | 397.3 |
3.95% Senior notes due August 1, 2047 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 471.3 | $ 427.1 |
Carrying Amounts and Estimate_2
Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Parenthetical) (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
2.45% Senior notes due August 1, 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
2.45% Senior notes due August 1, 2022 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
2.875% Senior notes due October 1, 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.875% | 2.875% |
2.875% Senior notes due October 1, 2022 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.875% | 2.875% |
3.15% Senior notes due August 1, 2027 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.15% | 3.15% |
3.15% Senior notes due August 1, 2027 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.15% | 3.15% |
3.95% Senior notes due August 1, 2047 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.95% | 3.95% |
3.95% Senior notes due August 1, 2047 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.95% | 3.95% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | May 01, 2019 | Jan. 17, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Increase in interest rate swap lock agreements liability | $ 35.3 | $ 35.3 | |||
Consumer Domestic and Consumer International Segment | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Increase (decrease) in estimate of contingent consideration liability | (72) | ||||
Flawless Acquisition | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Business Acquisition Liabilities | 120 | 120 | $ 192 | $ 182 | |
Flawless Acquisition | Updated Sales Forecasts | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Business Acquisition Liabilities | 120 | 120 | |||
Increase (decrease) in estimate of contingent consideration liability | $ (51) | $ (72) | |||
Agro Bio Sciences Inc | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Business Acquisition Liabilities | $ 17.8 | ||||
Agro Bio Sciences Inc | Updated Sales Forecasts | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Business Acquisition Liabilities | $ 14.2 |
Schedule of Notional Amounts (D
Schedule of Notional Amounts (Details) lb in Millions, gal in Millions, $ in Millions | Sep. 30, 2020USD ($)gallb | Dec. 31, 2019USD ($)gallb |
Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount | $ 226.7 | $ 216 |
Designated as Hedging Instrument | Interest Rate Swap Lock | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount | $ 300 | $ 300 |
Designated as Hedging Instrument | Diesel fuel contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount, Volume | gal | 4.7 | 4.8 |
Designated as Hedging Instrument | Commodities Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount, Volume | lb | 99 | 81.2 |
Not Designated as Hedging Instrument | Equity derivatives | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount | $ 22.1 | $ 22.1 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - Flawless Acquisition | May 01, 2019USD ($) |
Business Acquisition [Line Items] | |
Purchase price paid at closing | $ 475,000,000 |
Commercial paper borrowings and loan term | 3 years |
Net sales target period | 12 months |
Net sales target ending date | Dec. 31, 2021 |
Maximum | |
Business Acquisition [Line Items] | |
Additional earn-out payment | $ 425,000,000 |
Average life of the amortizable intangible assets, years | 20 years |
Minimum | |
Business Acquisition [Line Items] | |
Average life of the amortizable intangible assets, years | 15 years |
Fair Values of Net Assets Acqui
Fair Values of Net Assets Acquired (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | May 01, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,078.2 | $ 2,079.5 | |
Flawless Acquisition | |||
Business Acquisition [Line Items] | |||
Trade name | $ 447.3 | ||
Other intangible assets | 121.8 | ||
Goodwill | 87.9 | ||
Contingent consideration | $ (120) | $ (192) | (182) |
Cash purchase price | $ 475 |
Amortizable Intangible Assets (
Amortizable Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,817.2 | $ 1,822.4 |
Accumulated Amortization | (618.9) | (548.1) |
Net | 1,198.3 | 1,274.3 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,021 | 1,025.8 |
Accumulated Amortization | (254.9) | (219.7) |
Net | $ 766.1 | 806.1 |
Trade Names | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 3 years | |
Trade Names | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 20 years | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 584.8 | 584.8 |
Accumulated Amortization | (281.9) | (255) |
Net | $ 302.9 | 329.8 |
Customer Relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 15 years | |
Customer Relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 20 years | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 211.4 | 211.4 |
Accumulated Amortization | (82.1) | (73) |
Net | $ 129.3 | 138.4 |
Patents | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 4 years | |
Patents | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 20 years | |
Noncompete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 0 | 0.4 |
Accumulated Amortization | 0 | (0.4) |
Net | $ 0 | $ 0 |
Noncompete Agreements | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 5 years | |
Noncompete Agreements | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 10 years |
Indefinite Lived Intangible Ass
Indefinite Lived Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, Trade names | $ 1,475.8 | $ 1,475.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Amortization expense of intangible assets | $ 24.4 | $ 25.2 | $ 73.4 | $ 65.5 | ||
Estimated amortization expense, 2020 | 98 | 98 | ||||
Cash proceeds for sale of business | 7 | 0 | ||||
Gain on sale of business | 3 | $ 0 | ||||
Gross Carrying Amount | 1,817.2 | 1,817.2 | $ 1,822.4 | |||
Percent of fair value in excess of carrying value | 26.00% | |||||
Average royalty rate | 10.00% | |||||
Net book value | 1,198.3 | 1,198.3 | $ 1,274.3 | |||
U.S | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Fair value assumptions discount rate | 9.50% | |||||
International | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Fair value assumptions discount rate | 11.50% | |||||
Trade Names | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Gross Carrying Amount | 1,021 | 1,021 | $ 1,025.8 | |||
Net book value | 766.1 | 766.1 | 806.1 | |||
Trojan Trade Name | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Gross Carrying Amount | $ 176.4 | |||||
Trade Name and Other Intangible Assets | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Net book value | 23 | $ 23 | ||||
Remaining amortization period | 12 years | |||||
PERL WEISS Toothpaste | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Goodwill | $ 1.3 | |||||
Cash proceeds for sale of business | $ 7 | |||||
Discontinued Operation, Name of Segment [Extensible List] | chd:ConsumerInternationalSegmentMember | |||||
PERL WEISS Toothpaste | Selling General and Administrative Expenses | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Gain on sale of business | $ 3 | |||||
PERL WEISS Toothpaste | Trade Names | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Net book value of trade name | $ 2.7 | |||||
Maximum | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Estimated amortization expense, 2021 | 96 | $ 96 | ||||
Estimated amortization expense, 2022 | 96 | 96 | ||||
Estimated amortization expense, 2023 | 96 | 96 | ||||
Estimated amortization expense, 2024 | 96 | 96 | ||||
Estimated amortization expense, 2025 | 96 | 96 | ||||
Fair value assumptions growth rate | 2.00% | |||||
Minimum | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Estimated amortization expense, 2021 | 88 | 88 | ||||
Estimated amortization expense, 2022 | 88 | 88 | ||||
Estimated amortization expense, 2023 | 88 | 88 | ||||
Estimated amortization expense, 2024 | 88 | 88 | ||||
Estimated amortization expense, 2025 | $ 88 | $ 88 | ||||
Fair value assumptions growth rate | 0.00% |
Carrying Amount of Goodwill (De
Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 2,079.5 |
Ending balance | 2,078.2 |
PERL WEISS Toothpaste | |
Goodwill [Line Items] | |
PERL WEISS divestiture | (1.3) |
Consumer Domestic | |
Goodwill [Line Items] | |
Beginning balance | 1,707.9 |
Ending balance | 1,707.9 |
Consumer Domestic | PERL WEISS Toothpaste | |
Goodwill [Line Items] | |
PERL WEISS divestiture | 0 |
Consumer International | |
Goodwill [Line Items] | |
Beginning balance | 235.6 |
Ending balance | 234.3 |
Consumer International | PERL WEISS Toothpaste | |
Goodwill [Line Items] | |
PERL WEISS divestiture | (1.3) |
Specialty Products | |
Goodwill [Line Items] | |
Beginning balance | 136 |
Ending balance | 136 |
Specialty Products | PERL WEISS Toothpaste | |
Goodwill [Line Items] | |
PERL WEISS divestiture | $ 0 |
Summary of Lease information (D
Summary of Lease information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Leases [Abstract] | ||||||
Right of use assets | $ 154.9 | $ 154.9 | $ 150.7 | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | |||||
Current lease liabilities | 19 | 19 | $ 16.4 | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | |||||
Long-term lease liabilities | 146.5 | 146.5 | $ 144 | |||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |||||
Total lease liabilities | $ 165.5 | $ 165.5 | $ 160.4 | |||
Weighted-average remaining lease term (years) | 10 years 8 months 12 days | 10 years 8 months 12 days | 11 years 1 month 6 days | |||
Weighted-average discount rate | 4.80% | 4.80% | 4.90% | |||
Lease cost | [1] | $ 6.6 | $ 6.5 | $ 20 | $ 18.1 | |
Leased assets obtained in exchange for new lease liabilities | [2] | 2.2 | 2 | 18.7 | 59.1 | |
Cash paid for amounts included in the measurement of lease liabilities | $ 6.3 | $ 6.1 | $ 18.9 | $ 18.2 | ||
[1] | Lease expense is included in cost of sales or SG&A expenses based on the nature of the leased item. Short-term lease expense is excluded from this amount and is not material. The Company also has certain variable leases which are not material. The noncash component of lease expense for the first nine months of 2020 and 2019 was $14.4 and $13.2, respectively, and is included in the Amortization caption in the condensed consolidated statement of cash flows. | |||||
[2] | In March 2020, the Company approved a capital project to purchase additional machinery and equipment at one of its leased manufacturing facilities. This led to a lease modification to include a renewal option that would extend the lease for an additional five years through 2029. The modification resulted in an increase to the Company’s right of use assets and corresponding lease liabilities of approximately $7.3 recorded in the first quarter of 2020. In June 2019, the Company amended an operating lease for one of its manufacturing facilities to extend the lease an additional ten years through 2033. The amendment resulted in an increase to the Company’s right of use assets and corresponding lease liabilities of approximately $53.0 recorded in the second quarter of 2019. |
Summary of Lease information (P
Summary of Lease information (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | |||||
Noncash component of lease expense | $ 14.4 | $ 13.2 | |||
Lease extension term | 5 years | 10 years | 10 years | ||
Lease expiration period | 2029 | 2033 | |||
Increase (decrease) in right-of-use asset | $ 7.3 | $ 53 | |||
Increase (decrease) in operating lease liabilities | $ 7.3 | $ 53 |
Summary of Minimum Annual Renta
Summary of Minimum Annual Rentals Including Reasonably Assured Renewal Options under Lease Agreements (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2020 | $ 6 | |
2021 | 26.4 | |
2022 | 24.1 | |
2023 | 18.4 | |
2024 | 16.7 | |
2025 and thereafter | 121.8 | |
Total future minimum lease commitments | 213.4 | |
Less: Imputed Interest | (47.9) | |
Present value of lease liabilities | $ 165.5 | $ 160.4 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Trade accounts payable | $ 580.8 | $ 473.3 |
Accrued marketing and promotion costs | 188 | 138.1 |
Accrued wages and related benefit costs | 89.4 | 96.5 |
Other accrued current liabilities | 97.6 | 124 |
Total | $ 955.8 | $ 831.9 |
Summary of Short-Term Borrowing
Summary of Short-Term Borrowings and Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Short-term borrowings | ||
Commercial paper issuances | $ 0 | $ 248.6 |
Various debt due to international banks | 1.6 | 4.3 |
Total short-term borrowings | 1.6 | 252.9 |
Long-term debt | ||
Debt issuance costs, net | (10) | (11.5) |
Net long-term debt | 1,811.9 | 1,810.2 |
Term Loan | ||
Long-term debt | ||
Term loan | 300 | 300 |
2.45% Senior notes due August 1, 2022 | ||
Long-term debt | ||
Senior notes | 300 | 300 |
Less: Discount | (0.1) | (0.2) |
2.875% Senior notes due October 1, 2022 | ||
Long-term debt | ||
Senior notes | 400 | 400 |
Less: Discount | (0.1) | (0.1) |
3.15% Senior notes due August 1, 2027 | ||
Long-term debt | ||
Senior notes | 425 | 425 |
Less: Discount | (0.3) | (0.3) |
3.95% Senior notes due August 1, 2047 | ||
Long-term debt | ||
Senior notes | 400 | 400 |
Less: Discount | $ (2.6) | $ (2.7) |
Summary of Short-Term Borrowi_2
Summary of Short-Term Borrowings and Long-Term Debt - Additional Information (Details) - Unsecured Revolving Credit Facility - USD ($) $ in Millions | 1 Months Ended | |
May 31, 2020 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Unsecured revolving credit facility | $ 1,000 | |
Amount borrowed under unsecured revolving credit facility | $ 825 | |
Repayment of unsecured revolving credit facility | $ 825 |
Components of Changes in Accumu
Components of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning balance | $ (66.7) | $ (53.6) | |||||
Other comprehensive income (loss) before reclassifications | (37.1) | (41.2) | |||||
Amounts reclassified to consolidated statement of income | $ 2.2 | $ 2.8 | 4.1 | [1],[2] | 5.7 | [1],[2] | |
Tax benefit (expense) | 8.9 | 8.4 | |||||
Other comprehensive income (loss) | (24.1) | (27.1) | |||||
Ending balance | (90.8) | (80.7) | (90.8) | (80.7) | |||
Foreign Currency Adjustments | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning balance | (36.8) | (42.5) | |||||
Other comprehensive income (loss) before reclassifications | (0.4) | (4.1) | |||||
Amounts reclassified to consolidated statement of income | [1],[2] | 0 | 1.9 | ||||
Tax benefit (expense) | 0 | 0 | |||||
Other comprehensive income (loss) | (0.4) | (2.2) | |||||
Ending balance | (37.2) | (44.7) | (37.2) | (44.7) | |||
Defined Benefit Plans | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning balance | 0 | 0.9 | |||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | |||||
Amounts reclassified to consolidated statement of income | [1],[2] | 0 | 0 | ||||
Tax benefit (expense) | 0 | 0 | |||||
Other comprehensive income (loss) | 0 | 0 | |||||
Ending balance | 0 | 0.9 | 0 | 0.9 | |||
Derivative Agreements | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning balance | (29.9) | (12) | |||||
Other comprehensive income (loss) before reclassifications | (36.7) | (37.1) | |||||
Amounts reclassified to consolidated statement of income | [1],[2] | 4.1 | 3.8 | ||||
Tax benefit (expense) | 8.9 | 8.4 | |||||
Other comprehensive income (loss) | (23.7) | (24.9) | |||||
Ending balance | $ (53.6) | $ (36.9) | $ (53.6) | $ (36.9) | |||
[1] | The Company reclassified a loss of $2.2 and a loss of $2.8 to the condensed consolidated statement of income during the three months ended September 30, 2020 and 2019, respectively. | ||||||
[2] | Amounts reclassified to cost of sales, selling, general and administrative expenses or interest expense. |
Components of Changes in Accu_2
Components of Changes in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Statement Of Stockholders Equity [Abstract] | ||||||
Amounts loss (gain) reclassified to condensed consolidated statement of income | $ 2.2 | $ 2.8 | $ 4.1 | [1],[2] | $ 5.7 | [1],[2] |
[1] | The Company reclassified a loss of $2.2 and a loss of $2.8 to the condensed consolidated statement of income during the three months ended September 30, 2020 and 2019, respectively. | |||||
[2] | Amounts reclassified to cost of sales, selling, general and administrative expenses or interest expense. |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees - Additional Information (Details) | Apr. 30, 2020USD ($) | May 01, 2019USD ($) | Mar. 08, 2018USD ($) | Jan. 17, 2017USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($)T | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Annual purchase commitment, in tons | T | 240,000 | ||||||||
Commitments | $ 284,300,000 | ||||||||
Outstanding guarantees and letters of credit | $ 4,100,000 | 4,100,000 | |||||||
Payment Of Contingent Consideration | 14,500,000 | $ 0 | |||||||
Estimated minimum compensatory punitive damages | 20,000,000 | ||||||||
Agro Bio Sciences Inc | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Payment year of achieving certain operating performance | 2019 | ||||||||
Payment to be made if certain operating performance is achieved | $ 17,800,000 | ||||||||
Payment Of Contingent Consideration | $ 14,500,000 | ||||||||
Agro Bio Sciences Inc | Updated Sales Forecasts | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Payment to be made if certain operating performance is achieved | $ 14,200,000 | ||||||||
Passport Food Safety Solutions Inc | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Payment year of achieving certain operating performance | 2020 | ||||||||
Payment to be made if certain operating performance is achieved | $ 7,300,000 | ||||||||
Increase (decrease) in estimate of contingent consideration liability | 0 | ||||||||
Passport Food Safety Solutions Inc | Updated Sales Forecasts | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Reversed contingent liability | $ 7,300,000 | ||||||||
Flawless Acquisition | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Payment year of achieving certain operating performance | 2021 | ||||||||
Payment to be made if certain operating performance is achieved | $ 182,000,000 | 120,000,000 | 120,000,000 | $ 192,000,000 | |||||
Flawless Acquisition | Updated Sales Forecasts | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Payment to be made if certain operating performance is achieved | 120,000,000 | 120,000,000 | |||||||
Increase (decrease) in estimate of contingent consideration liability | $ (51,000,000) | $ (72,000,000) | |||||||
Maximum | Agro Bio Sciences Inc | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Additional earn-out payment | $ 25,000,000 | ||||||||
Maximum | Passport Food Safety Solutions Inc | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Additional earn-out payment | $ 25,000,000 | ||||||||
Maximum | Flawless Acquisition | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Additional earn-out payment | $ 425,000,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | Sep. 30, 2020 | Sep. 30, 2019 |
Armand Products Company | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership interest | 50.00% | 50.00% |
ArmaKleen Company | ||
Related Party Transaction [Line Items] | ||
Percentage of ownership interest | 50.00% | 50.00% |
Balance and Transactions Betwee
Balance and Transactions Between Company and Related Party (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Armand Products Company | |||
Related Party Transaction [Line Items] | |||
Purchases by Company | $ 10.7 | $ 10.5 | |
Sales by Company | 0 | 0 | |
Outstanding Accounts Receivable | 0.3 | 0.3 | |
Outstanding Accounts Payable | 1.4 | 1.2 | |
Administration & Management Oversight Services | [1] | 1.6 | 1.9 |
ArmaKleen Company | |||
Related Party Transaction [Line Items] | |||
Purchases by Company | 0 | 0 | |
Sales by Company | 0.7 | 0.9 | |
Outstanding Accounts Receivable | 0.7 | 0.7 | |
Outstanding Accounts Payable | 0 | 0 | |
Administration & Management Oversight Services | [1] | $ 1.6 | $ 1.6 |
[1] | Billed by the Company and recorded as a reduction of SG&A expenses. |
Segments - Additional Informati
Segments - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 3 | |||
Equity in earnings of affiliates | $ 1.9 | $ 2.1 | $ 5.5 | $ 5.5 |
Armand Products Company | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% | 50.00% |
ArmaKleen Company | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% | 50.00% |
Armand Products Company and ArmaKleen Company | ||||
Segment Reporting Information [Line Items] | ||||
Equity in earnings of affiliates | $ 1.9 | $ 2.1 | $ 5.5 | $ 5.5 |
Selected Financial Information
Selected Financial Information Relating To Company's Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | $ 1,241 | $ 1,089.4 | $ 3,600.5 | $ 3,213.5 |
Income Before Income Taxes | [2] | 261.5 | 200.6 | 796.9 | 596 |
Operating Segments | Consumer Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 954.6 | 827.6 | 2,776.7 | 2,431.8 |
Income Before Income Taxes | [2] | 220.6 | 165.9 | 671.8 | 484.8 |
Operating Segments | Consumer International | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 213.6 | 186.4 | 599.7 | 559.7 |
Income Before Income Taxes | [2] | 32.4 | 22.1 | 94 | 67.4 |
Operating Segments | Specialty Products | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 72.8 | 75.4 | 224.1 | 222 |
Income Before Income Taxes | [2] | 6.6 | 10.5 | 25.6 | 38.3 |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 0 | 0 | 0 | 0 |
Income Before Income Taxes | [2] | $ 1.9 | $ 2.1 | $ 5.5 | $ 5.5 |
[1] | Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $3.3 and $2.8 for the three months ended September 30, 2020 and September 30, 2019, respectively , and were $9.1 and $7.5 for the nine months ended September 30, 2020 and September 30, 2019, respectively. | ||||
[2] | In determining income before income taxes, interest expense, investment earnings and certain aspects of other income and expense were allocated among segments based upon each segment’s relative income from operations. |
Selected Financial Informatio_2
Selected Financial Information Relating To Company's Segments (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | $ 1,241 | $ 1,089.4 | $ 3,600.5 | $ 3,213.5 |
Intersegment Sales | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 3.3 | $ 2.8 | $ 9.1 | $ 7.5 | |
[1] | Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $3.3 and $2.8 for the three months ended September 30, 2020 and September 30, 2019, respectively , and were $9.1 and $7.5 for the nine months ended September 30, 2020 and September 30, 2019, respectively. |
Product Line Revenues from Exte
Product Line Revenues from External Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | $ 1,241 | $ 1,089.4 | $ 3,600.5 | $ 3,213.5 |
Operating Segments | Consumer Domestic | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 954.6 | 827.6 | 2,776.7 | 2,431.8 |
Operating Segments | Consumer Domestic | Household Products | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 501.4 | 463.5 | 1,540.4 | 1,371.1 | |
Operating Segments | Consumer Domestic | Personal Care Products | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 453.2 | 364.1 | 1,236.3 | 1,060.7 | |
Operating Segments | Consumer International | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | 213.6 | 186.4 | 599.7 | 559.7 |
Operating Segments | Specialty Products | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | [1] | $ 72.8 | $ 75.4 | $ 224.1 | $ 222 |
[1] | Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table, were $3.3 and $2.8 for the three months ended September 30, 2020 and September 30, 2019, respectively , and were $9.1 and $7.5 for the nine months ended September 30, 2020 and September 30, 2019, respectively. |