11-K 1 chd11ksalaried2010.htm FORM 11-K SALARIED EMPLOYEES chd11ksalaried2010.htm


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 11-K
 
 
(Mark One)
x
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the fiscal year ended December 31, 2009
 
OR
 
¨
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the transition period from              to             
 
Commission File Number 1-10585
 
A.
Full title of the plan and the address of the plan, if different from that of the issuer named below:
 
CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN
FOR SALARIED EMPLOYEES
 
B.
Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

CHURCH & DWIGHT CO., INC.
469 NORTH HARRISON STREET
PRINCETON, NEW JERSEY 08543-5297
 
 
 
 
 


 

 
 
CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES
 
Table of Contents

 
Page
Financial Statements and Supplemental Schedule:
 
    2
   
Financial Statements:
 
    3
    4
    5
   
Supplemental Schedule:
 
    16
   
All other schedules are omitted since they are not applicable or are not required based on the disclosure requirements of the Employee Retirement Income Security Act of 1974 and applicable regulations issued by the Department of Labor.
 
   
Exhibit:
 
 
23.1 Consent of Independent Registered Public Accounting Firm
 
 
Report of Independent Registered Public Accounting Firm
 
The Retirement and Administrative Committee, Plan Administrator and Participants
Church & Dwight Co., Inc. Savings and Profit Sharing Plan for Salaried Employees

We have audited the accompanying statements of net assets available for benefits of Church & Dwight Co., Inc. Savings and Profit Sharing Plan for Salaried Employees as of December 31, 2009 and 2008, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Church & Dwight Co., Inc. Savings and Profit Sharing Plan for Salaried Employees as of December 31, 2009 and 2008, and the changes in its net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
 
Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the 2009 basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the 2009 basic financial statements taken as a whole.
 

/s/ J.H. Cohn LLP
Roseland, New Jersey
June 29, 2010
 
CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES


STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2009 AND 2008


ASSETS
 
2009
   
2008
 
Investments, at fair value:
           
     Church & Dwight Co., Inc. common stock
  $ 76,883,908     $ 72,104,003  
     Mutual funds
    115,905,542       78,816,658  
     Collective trusts
    30,484,007       27,806,460  
          Totals
    223,273,457       178,727,121  
     Participant  Loans
    1,430,870       1,162,209  
          Totals
    224,704,327       179,889,330  
Receivables-Employer contributions
    11,168,627       8,247,509  
          Total
    235,872,954       188,136,839  
Payables-Excess employee contributions
    (9,806 )     -  
Net assets available for benefits, at fair value
    235,863,148       188,136,839  
Adjustment from fair value to contract value for interest in collective trusts relating to fully benefit-responsive investment contracts
    (659,008 )       363,521  
 Net assets available for benefits
  $ 235,204,140     $ 188,500,360  

See Notes to Financial Statements.
CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES
 
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 2009 AND 2008
 
   
2009
   
2008
 
Additions (deductions) to net assets attributable to:
           
Investment income:
           
Net appreciation (depreciation) in fair value of investments
  $ 27,090,891     $ (37,114,149 )
Dividend and interest income
    3,832,280       4,777,301  
Totals
    30,923,171       (32,336,848 )
Contributions:
               
Participant
    8,599,488       8,155,709  
Employer
    13,533,403       10,292,880  
Totals
    22,132,891       18,448,589  
Other additions
    128,285       -  
Totals
    53,184,347       (13,888,259 )
Deductions from net assets attributable to:
               
Distributions to participants
    6,657,912       11,580,219  
Excess employee contributions
    9,806       -  
Other deductions
    83,628       3,403  
Totals
    6,751,346       11,583,622  
Net increase (decrease)  in plan assets before transfers
    46,433,001       (25,471,881 )
Transfers in from other plans
    270,779       2,594,827  
Net increase (decrease) in plan assets after transfers
     46,703,780       (22,877,054 )
Net assets available for benefits:
               
Beginning of year
    188,500,360       211,377,414  
End of year
  $ 235,204,140     $ 188,500,360  
 
See Notes to Financial Statements.

CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS
 
Note 1 - Description of Plan:
The following description of Church & Dwight Co., Inc. (the "Company") Savings and Profit Sharing Plan for Salaried Employees (the "Plan") provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions.

General:
Effective July 1, 1984, the Church & Dwight Co., Inc. Investment Savings Plan was amended and restated to provide a cash or deferred arrangement (Internal Revenue Code Section 401(k)), for after-tax employee contributions and employer matching contributions. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA").  In 1994 the Investment Savings Plan was merged with the Profit Sharing Plan with the Profit Sharing Plan being the survivor of the merger.

Establishment of New Plan
Effective January 1, 2006, Church & Dwight Co., Inc. Profit Sharing Plan was renamed Church & Dwight Co., Inc. Savings and Profit Sharing Plan for Hourly Employees and amended to exclude salaried employees. Coincident with such changes, the Company established Church & Dwight Co., Inc. Savings and Profit Sharing Plan for Salaried Employees (collectively, the “New Plans”) to which the account balances of salaried employees under the Plan were transferred.

All salaried employees of the Company are eligible for participation in the Plan.

Effective January 1, 2006, the Plan was amended to bring it into compliance with the Pension Protection Act of 2006.

That portion of the Plan derived from account balances invested in Company stock and all contributions (including pre-tax, Roth 401K effective July 1, 2009, post-tax, Company match and profit sharing) made after April 30, 2003 are considered and designated as an Employee Stock Ownership Plan (“ESOP”) component. The principal purpose of the ESOP is to provide participants and beneficiaries an ownership interest in the Company.

Administrative expenses:
Administrative costs are paid by the Company and by the Plan.

Contributions:
Participants may elect to make pre-tax, Roth or post-tax contributions of 1% to 6% of compensation, provided, however, that all contributions must be fixed in multiples of 1%. The Company matches an amount equal to 50% of each participant's pre-tax, Roth 401K effective July 1, 2009, or post-tax contributions up to a maximum of 6%. Participants may also elect to make pre-tax, Roth 401K effective July 1, 2009, or post-tax contributions in excess of 6% of compensation that are not matched (HCE, highly compensated employees, are subject to separate limits). Effective July 1, 2003, the Plan maximum was changed so that total participant contributions cannot exceed 70% of compensation. Participants who have attained age 50 before the end of the Plan Year are eligible to make catch-up contributions but there is no Company match on catch-up contributions.

CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 1 - Description of Plan (continued):
Until July 1, 2009, the Company’s matching contributions of participants with less than 3 years of service were invested in the Company Stock Fund. For all other participants and for participants with less than 3 years of service effective July 1, 2009, Company match contributions are directed to the fund allocation selected by the participant. Participants specify which investment funds, in increments of 1% that their contributions are invested in, provided that not more than 50% (20% as of July 1, 2009) of such contributions are contributed to the Company Stock Fund.

Each year, the Company shall make a profit sharing contribution to the fund in such amount as the Board in its discretion deems appropriate to Plan participants eligible as of December 31.  The minimum contribution shall be 4% for 2003 and beyond as long as this plan design is in place. Effective July 1, 2009, the first 1% of the profit sharing contribution percentage will be invested in Company stock.

The participant will specify in which investment fund, in increments of 1%, that the Company's profit sharing contributions to their account will be invested. If no allocation is on file, the contribution is made to the target dated Retirement Fund nearest the participant’s 65th birthday.

A participant may, with the consent of the Plan administrator, make a rollover contribution to the Plan at any time. Rollover contributions are assets transferred to the Plan from a qualified retirement plan or a conduit individual retirement account in which employees participated prior to their employment by the Company.

Participant accounts:
Each participant’s account is credited with the participant’s contribution and allocations of (a) the Company’s contributions and (b) Plan earnings. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
 
CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 1 - Description of Plan (continued):
Vesting:
Participants are fully vested at all times in their pre- or post-tax contributions and rollover contributions. Effective on August 1, 2007, Company match and profit sharing contributions for employees hired after that date vest in the same time frame as shown below:

Service
 
Vested Percentage (%)
Less than 2 years
 
0
2 years but less than 3 years
 
25
3 years but less than 4 years
 
50
4 years but less than 5 years
 
75
5 years or more
 
100

Upon termination of employment for any reason, other than retirement, death or total and permanent disability, a participant shall be entitled to a benefit equal to the vested portion, if any, of the participant's profit sharing account and Company matching contributions. A participant shall be 100% vested in the participant's profit sharing account and Company matching contributions upon the attainment of normal retirement age or death.  Employees who are approved for long-term disability are eligible for a continuing profit sharing contribution provided they do not take a distribution of their profit sharing account. The continuing profit sharing contribution ends after two years and the account is paid out based upon the vesting schedule above.  Participants with 20 or more years of service at the onset of their disability are subject to different limits.

Participant loans:
A participant may request a loan to be made from the value of the vested portion of the participant’s account for a minimum of $500 up to a maximum equal to the lesser of $50,000 or 50% of their account balance.

Loans are secured by an equiv­a­lent lien on the participant’s non-forfeitable interest in the Plan and bear interest at prime plus 1%. Principal and interest are paid through payroll deductions. Funds in an employee’s profit sharing account are not available for loans.

Distributions:
Distributions may be taken as a lump sum cash payment or as a rollover to a qualified plan or individual retirement account. In-kind distributions of Company Stock are also permitted.
 
CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of Plan (concluded):
Forfeitures:
Forfeitures of non-vested Company matching and profit-sharing contributions are used to reduce future Company contributions. Company matching and profit sharing contributions were reduced by $337,920 and $457,105 for such forfeitures during the years ended December 31, 2009 and 2008, respectively. The amount in the forfeitures account was $342,871 and $280,957 as of December 31, 2009 and 2008, respectively.
 
Note 2 - Summary of significant accounting policies:
Basis of presentation:
The accompanying financial statements are prepared under the accrual method of accounting.
 
Investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan.  The statement of net assets available for benefits presents the fair value of the investment contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The statement of changes in net assets available for benefits is prepared on a contract value basis.

Use of estimates:
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Plan management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
 
CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 2 - Summary of significant accounting policies (concluded):
Investment valuation and income recognition:
Investments in mutual funds are carried at market as determined by Vanguard Fiduciary Trust Company (the "Trustee") based upon quoted market prices. The investment in Company common stock is valued at the closing price as quoted by a national exchange. In accordance with this policy, the net gain (loss) for each year is reflected in the statement of changes in net assets available for benefits. Participant loans are valued at their outstanding balance, which approximates fair value. The Plan’s interest in the collective trust at year-end is valued based on information reported by the investment advisor using the audited financial statements of the collective trust at year-end.
 
Purchases and sales of securities are recorded on a trade-date basis. Dividends are recorded on the ex-dividend date. Interest income is recorded as earned on an accrual basis.  Net appreciation (depreciation) includes the Plan’s gains and losses on investments bought and sold as well as held during the year.
 
Payment of benefits:
Benefits are recorded when paid.
 
Note 3 - Investments:
The following table presents investments that represent 5% or more of the Plan’s net assets at December 31, 2009 and 2008:

   
2009
   
2008
 
Church & Dwight Co., Inc. common stock
  $ 76,883,908     $ 72,104,003  
Neuberger Berman Genesis Fund
    -       9,670,206  
PIMCO Total Return Bond Fund
    18,009,891       12,988,143  
Vanguard Retirement Savings Trust
    30,484,007       27,806,460  
Thornburg International Value Fund
    12,020,002       -  
T. Rowe Price Blue Chip Growth Fund
    14,709,597       -  

CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 3- Investments (continued):
The Plan’s investment assets appreciated (depreciated) in fair value as deter­mined by quoted market prices as follows:

   
2009
   
2008
 
Church & Dwight Co., Inc common stock
  $ 5,460,746     $ 3,352,269  
Columbia Mid Cap Value Fund
    987,583       (1,159,621 )
Munder Mid Cap Core Growth Shares
    1,588,051       (1,359,871 )
Neuberger Berman Genesis Fund
    2,473,850       (5,126,522 )
PIMCO Total Return Bond Fund
    981,269       (724,258 )
T. Rowe Price Blue Chip Growth Fund
    4,241,183       (6,504,739 )
Thornburg International Value Fund
    2,697,617       (2,075,315 )
Van Kampen Growth & Income Fund
    1,121,208       (2,194,014 )
Vanguard S&P 500 Index Fund
    1,727,623       (3,528,299 )
Vanguard Small Cap Index Fund
    484,826       (292,185 )
Vanguard Target Retirement 2005 Fund
    34,487       (18,059 )
Vanguard Target Retirement 2010 Fund
    240,496       (197,925 )
Vanguard Target Retirement 2015 Fund
    605,121       (524,214 )
Vanguard Target Retirement 2020 Fund
    1,003,516       (830,658 )
Vanguard Target Retirement 2025 Fund
    628,248       (546,929 )
Vanguard Target Retirement 2030 Fund
    461,251       (404,698 )
Vanguard Target Retirement 2035 Fund
    559,426       (404,496 )
Vanguard Target Retirement 2040 Fund
    382,440       (207,668 )
Vanguard Target Retirement 2045 Fund
    328,054       (202,110 )
Vanguard Target Retirement 2050 Fund
    104,144       (55,553 )
Vanguard Target Retirement Income Fund
    16,743       (2,710 )
Vanguard Wellington Fund
    963,009       (593,621 )
George Putnam Fund of Boston
    -       (1,337,362 )
ING Index Plus Small Cap Fund
    -       (129,338 )
Lord Abbett Mid Cap Value Fund
    -       (1,524,735 )
Putnam International Equity Fund
    -       (4,778,119 )
Putnam Retirement Ready Maturity Fund
    -       (32,312 )
Putnam Retirement Ready 2010 Fund
    -       (170,708 )
Putnam Retirement Ready 2015 Fund
    -       (542,227 )
Putnam Retirement Ready 2020 Fund
    -       (942,418 )
Putnam Retirement Ready 2025 Fund
    -       (649,406 )
Putnam Retirement Ready 2030 Fund
    -       (472,805 )
Putnam Retirement Ready 2035 Fund
    -       (425,918 )
Putnam Retirement Ready 2040 Fund
    -       (226,554 )
Putnam Retirement Ready 2045 Fund
    -       (211,016 )
Putnam Retirement Ready 2050 Fund
    -       (64,471 )
Putnam Vista Fund
    -       (2,005,564 )
          Totals
  $ 27,090,891     $ (37,114,149 )
 
CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 4 - Nonparticipant-directed investments:
Information about the net assets and the significant components of the changes in net assets relating to the nonparticipant-directed investments is as follows as of December 31, 2009 and 2008 and for the years then ended:

   
2009
   
2008
 
Net assets:
           
Company Stock
  $ -     $ 623,556  
Changes in net assets:
               
Net appreciation (depreciation)
  $ (56,932 )   $ 34,458  
Dividends/interest
    -       23  
Employer contributions
    363,650       489,758  
Terminations and withdrawals
    (12,607 )     (54,488 )
Forfeitures
    (27,217 )     (55,458 )
Transfers to participant – directed investments
    (888,267 )     (469,587 )
Loans
    (2,183 )     (3,750 )
Fees and miscellaneous
    -       42,053  
Net decrease
    (623,556 )     (16,991 )
Balance, beginning of year
    623,556       640,547  
Balance, end of year
  $ -     $ 623,556  
 
Only the Company matching contributions for those participants with less than three years of service, made to the Company Stock Fund are nonparticipant-directed investments.

Effective July 1, 2009, the first 1% of the profit sharing contribution percentage is a nonparticipant directed investments and Company matching contribution for participants with less than 7 years of service are no longer nonparticipant directed investments.

Note 5 - Related party transactions:
The Trustee is provided with the authority to invest, sell, dispose of or otherwise deal with such assets held in trust based on the most recent agreement effective October 1, 2008 with the Company. Certain Plan investments are in shares of mutual funds managed by the Trustee and, therefore, these transactions qualify as party-in-interest transactions.

The Company is also a party-in-interest to the Plan under the definition provided in Section 3 (14) of ERISA. Therefore, the Company's common stock transactions qualify as party-in-interest transactions.

CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 6 - Plan termination:
The Company intends to continue the Plan indefinitely, but reserves the right to terminate it at any time, subject to the provisions of ERISA. Upon termination of the Plan or upon complete discontinuance of contributions, all participants will become fully vested in their account balances under the Plan.

Note 7 - Tax status:
The Internal Revenue Service has determined and informed the Company by letter dated August 20, 2003, that the Plan is qualified and the trust established under the Plan is tax-exempt, under the appropriate sections of the Internal Revenue Code (the “Code”). The Plan has been amended since receiving the determination letter. However, the Plan administrator and the Plan's tax counsel believe that the Plan is currently designed and being operated in compliance with the applicable requirements of the Code. Therefore, they believe that the Plan was qualified and the related trust was tax-exempt as of the financial statement date.

Note 8 - Risks and uncertainties:
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statements of net assets available for benefits.
 
Note 9 - Fair value measurements:
On January 1, 2008, the Plan adopted a Financial Accounting Standards Board (“FASB”) fair value measurements accounting standard, which defines fair value and establishes a framework for measuring fair value.  That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the FASB standard are described as follows:

 
Level 1:
Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

 
Level 2:
Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in inactive markets; or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data.

 
Level 3:
Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
 
CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS
 
Note 9 - Fair value measurements (continued):
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

Financial assets carried at fair value at December 31, 2009 are classified in the table below in one of the three categories described above:

   
Level 1
   
Level 2
   
Level 3
   
Total
 
Equity securities
  $ 76,883,908       -       -     $ 76,883,908  
Mutual funds
    115,905,542       -       -       115,905,542  
Common collective trust
    -       -     $ 30,484,007       30,484,007  
Participant loans
    -       -       1,430,870       1,430,870  
Total assets at fair value
  $ 192,789,450       -     $ 31,914,877     $ 224,704,327  

Financial assets carried at fair value at December 31, 2008 are classified in the table below in one of the three categories described above:

   
Level 1
   
Level 2
   
Level 3
   
Total
 
Equity securities
  $ 72,104,003       -       -     $ 72,104,003  
Mutual funds
    78,816,658       -       -       78,816,658  
Common collective trust
    -       -     $ 27,806,460       27,806,460  
Participant loans
    -       -       1,162,209       1,162,209  
Total assets at fair value
  $ 150,920,661       -     $ 28,968,669     $ 179,889,330  

Equity securities and mutual funds are valued using market prices on active markets (Level 1). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets.
 
Level Three Gains and Losses:
Level 3 Assets
Year Ended December 31, 2009
 
   
Participant Loans
   
Common Collective Trust
   
 
Total
 
Balance, beginning of year
  $ 1,162,209     $ 27,806,460     $ 28,968,669  
Dividends and interest
    82,624       909,721       992,345  
Purchases, sales, issuances and settlements (net)
    186,037       1,767,826       1,953,863  
Balance, end of year
  $ 1,430,870     $ 30,484,007     $ 31,914,877  

CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS
Note 9 - Fair value measurements (concluded):
Common collective trust
The Plan’s interest in the common collective trust is valued based on information reported by the investment advisor using the audited financial statements of the common collective trust at year end. The net asset value is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding.

Participant loans
Participant loans are valued at amortized cost which approximate fair value.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Note 10 - Reconciliation of Financial Statements to Form 5500:
 
The following is a reconciliation of amounts reported in the 2009 and 2008 financial statements to amounts reported in the 2009 and 2008 Form 5500:

   
2009
   
2008
 
Net assets available for benefits, per the financial statements
  $ 235,204,140     $ 188,500,360  
Adjustment from contract value to fair value for fully benefit-responsive investment contracts
     659,008       (363,521 )
Net assets available for benefits, per Form 5500
  $ 235,863,148     $ 188,136,839  
Net appreciation (depreciation) in fair value of investments, per the financial  statements
  $ 27,090,891     $ (37,114,149 )
Adjustment from contract value to fair value for full benefit-responsive investment contracts
      1,022,529       (831,655 )
Net appreciation (depreciation) in fair value of investments, per Form 5500
  $ 28,113,420     $ (37,945,804 )
 
CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 11 - Investment Contract:
The Plan entered into a benefit-responsive investment contract with Vanguard Retirement Services Master Trust (the “Trust”).  The Trust maintains contributions in a general account. The account is credited with earnings on the underlying investments and charged for participant withdrawals and administrative expenses. The guaranteed investment contract issuer is contractually obligated to repay the principal and a specified interest rate that is guaranteed to the Plan.

As described in Note 2, because the guaranteed investment contract is fully benefit-responsive, contract value is the relevant measurement attribute for that portion of the net assets available for benefits attributable to the guaranteed investment contract.  Contract value, as reported to the Plan by Vanguard and the Trust, represents contributions made under the contract, plus earnings, less parti­cipant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value.

There are no reserves against contract value for credit risk of the contract issuer or otherwise. The crediting interest rate is based on a formula agreed upon with the issuer, but it may not be less than 0% for the contracts with the Trust. Such interest rates are reviewed on a quarterly basis for resetting.

Certain events limit the ability of the Plan to transact at contract value with the issuer. Any event outside the normal operation of the Trust that causes a withdrawal from an investment contract may result in a negative market value adjustment with respect to the withdrawal. Examples of such events include but are not limited to the following: (1) partial or complete legal termination of the Trust or a unit holder, (2) tax disqualification of the Trust or unit holder, and (3) certain Trust amendments if issuers’ consent is not obtained. The Plan Administrator does not believe that the occurrence of any such value event, which would limit the Plan’s ability to transact at contract value with participants, is probable.

Certain data related to the benefit-responsive contracts in effect in 2009 and 2008 is presented below:
 
 
2009
 
2008
Average yields:
     
Trust:
     
   Based on actual earnings
  3.31%
 
 3.74%
   Based on interest rate credited to participants
  3.26%
 
 5.60%

CHURCH & DWIGHT CO., INC.
SAVINGS AND PROFIT SHARING PLAN FOR
SALARIED EMPLOYEES
EIN #13-4996950
Plan #008

SCHEDULE OF ASSETS (HELD AT END OF YEAR)
(Schedule H, Line 4i)
DECEMBER 31, 2009


Identity of Issue, Borrower, Lessor or Similar Party
 
Investment Description
 
Cost
   
Current Value
 
*Church & Dwight Co., Inc.
 
Common Stock
  $ 32,346,190      $ 76,883,908  
Columbia Mid Cap Value Fund
 
Mutual Fund
    4,054,266       4,096,731  
Munder Mid Cap Core Growth Shares
 
Mutual Fund
    6,379,595       6,789,438  
Neuberger Berman Genesis Fund
 
Mutual Fund
    11,767,701       11,238,835  
PIMCO Total Return Bond Fund
 
Mutual Fund
    17,239,131       18,009,891  
T. Rowe Price Blue Chip Growth Fund
 
Mutual Fund
    13,099,015       14,709,597  
Thornburg International Value Fund
 
Mutual Fund
    11,034,041       12,020,002  
Van Kempen Growth & Income Fund
 
Mutual Fund
    6,017,161       6,139,577  
*Vanguard 500 Index Fund
 
Mutual Fund
    8,461,537       8,770,494  
*Vanguard Small Cap Index Fund
 
Mutual Fund
    1,923,092       2,148,318  
*Vanguard Target Retirement 2005 Fund
 
Mutual Fund
    257,551       272,630  
*Vanguard Target Retirement 2010 Fund
 
Mutual Fund
    2,007,383       2,062,366  
*Vanguard Target Retirement 2015 Fund
 
Mutual Fund
    3,863,047       3,959,470  
*Vanguard Target Retirement 2020 Fund
 
Mutual Fund
    5,868,917       6,133,914  
*Vanguard Target Retirement 2025 Fund
 
Mutual Fund
    3,385,828       3,571,512  
*Vanguard Target Retirement 2030 Fund
 
Mutual Fund
    2,182,628       2,312,991  
*Vanguard Target Retirement 2035 Fund
 
Mutual Fund
    2,540,147       2,740,107  
*Vanguard Target Retirement 2040 Fund
 
Mutual Fund
    1,725,271       1,926,392  
*Vanguard Target Retirement 2045 Fund
 
Mutual Fund
    1,373,809       1,532,844  
*Vanguard Target Retirement 2050 Fund
 
Mutual Fund
    442,986       502,324  
*Vanguard Target Retirement Income Fund
 
Mutual Fund
    181,341       192,419  
*Vanguard Wellington Fund
 
Mutual Fund
    5,981,704       6,416,922  
*Vanguard Prime Money Market
 
Mutual Fund
    358,768       358,768  
*Vanguard Retirement Savings Trust
 
Collective Trust
    29,824,999       30,484,007  
 
        172,316,108       223,273,457  
*Participant Loan Fund (various maturity dates with interest rates ranging from 4.25% to 9.25%)
 
Loan
    1,430,870       1,430,870  
Totals
      $ 173,746,978     $ 224,704,327  
 
* Party-in-interest.

See Report of Independent Registered Public Accounting Firm.

- 15 -
 
 

 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Church & Dwight Co., Inc. Profit Sharing Plan for Salaried Employees
   
Date:
June 29, 2010
By:
/s/ Gary P. Halker
 
Name:
Gary P. Halker
 
Title:
Vice President, Finance and Treasurer
   
Church & Dwight Co., Inc.