0001193125-14-252699.txt : 20140627 0001193125-14-252699.hdr.sgml : 20140627 20140627122436 ACCESSION NUMBER: 0001193125-14-252699 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20131231 FILED AS OF DATE: 20140627 DATE AS OF CHANGE: 20140627 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHURCH & DWIGHT CO INC /DE/ CENTRAL INDEX KEY: 0000313927 STANDARD INDUSTRIAL CLASSIFICATION: SOAP, DETERGENT, CLEANING PREPARATIONS, PERFUMES, COSMETICS [2840] IRS NUMBER: 134996950 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10585 FILM NUMBER: 14944997 BUSINESS ADDRESS: STREET 1: 500 CHARLES EWING BOULEVARD CITY: EWING STATE: NJ ZIP: 08628 BUSINESS PHONE: 609-806-1200 MAIL ADDRESS: STREET 1: 500 CHARLES EWING BOULEVARD CITY: EWING STATE: NJ ZIP: 08628 11-K 1 d747737d11k.htm CHURCH & DWIGHT CO., INC. SALARIED EMPLOYEES FORM 11-K <![CDATA[Church & Dwight Co., Inc. Salaried Employees Form 11-K]]>
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

LOGO

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, 2013

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.

500 CHARLES EWING BOULEVARD

EWING TOWNSHIP, NEW JERSEY 08628

 

 

 


Table of Contents

CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

Table of Contents

 

     Page  
Financial Statements and Supplemental Schedule:   
 

Report of Independent Registered Public Accounting Firm

     2  
    
Financial Statements:   
 

Statements of Net Assets Available for Benefits December 31, 2013 and 2012

     3  
 

Statements of Changes in Net Assets Available for Benefits Years Ended December 31, 2013 and 2012

     4  
 

Notes to Financial Statements

     5  
    
Supplemental Schedule:   
 

Schedule of Assets (Held at End of Year) (Schedule H, Line 4i) December 31, 2013

     19  
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

  

 

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Table of Contents

Report of Independent Registered Public Accounting Firm

To the Retirement and Administrative Committee, Plan Administrator and Participants of 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 the Church & Dwight Co., Inc. Savings and Profit Sharing Plan for Salaried Employees (the “Plan”) as of December 31, 2013 and 2012, 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. The Plan is not required to have, nor were we engaged to perform, an audit of the Plan’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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 the Plan as of December 31, 2013 and 2012, 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) (Schedule H, Line 4i) as of December 31, 2013 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. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ CohnReznick LLP

Roseland, New Jersey

June 27, 2014

 

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Table of Contents

CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

DECEMBER 31, 2013 AND 2012

 

ASSETS

   2013     2012  

Investments, at fair value:

    

Plan’s interest in the Church & Dwight Co., Inc. Master Trust for Salaried and Hourly 401(k) Plans

   $ 134,679,993      $ 114,113,975   

Mutual funds

     225,204,206        179,843,559   

Collective trust

     33,841,214        32,763,779   
  

 

 

   

 

 

 

Totals

     393,725,413        326,721,313   
  

 

 

   

 

 

 

Receivables:

    

Notes receivable from participants

     2,021,183        1,674,750   

Employer contributions

     10,160,334        9,057,825   
  

 

 

   

 

 

 

Totals

     12,181,517        10,732,575   
  

 

 

   

 

 

 

Net assets available for benefits, at fair value

     405,906,930        337,453,888   

Adjustment from fair value to contract value for interest in collective trust relating to fully benefit-responsive investment contracts

     (917,518     (1,649,409
  

 

 

   

 

 

 

Net assets available for benefits

   $ 404,989,412      $ 335,804,479   
  

 

 

   

 

 

 

See Notes to Financial Statements.

 

3


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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, 2013 AND 2012

 

     2013     2012  

Additions to net assets attributable to:

    

Investment income:

    

Net appreciation in fair value of investments

   $ 36,456,213      $ 16,400,797   

Plan’s interest in the Church & Dwight Co., Inc. Master Trust for Salaried and Hourly 401(k) Plans investment income

     26,370,283        17,784,858   

Plan’s interest in the Church & Dwight Co., Inc. Master Trust for Salaried and Hourly 401(k) Plans dividend income

     2,356,783        2,181,174   

Dividend and interest income

     6,402,047        5,418,349   
  

 

 

   

 

 

 

Totals

     71,585,326        41,785,178   
  

 

 

   

 

 

 

Contributions:

    

Employee

     11,718,258        10,816,781   

Employer

     13,198,953        11,755,549   
  

 

 

   

 

 

 

Totals

     24,917,211        22,572,330   
  

 

 

   

 

 

 

Interest income on notes receivable from participants

     77,516        70,289   

Other additions

     145,094        124,832   
  

 

 

   

 

 

 

Totals

     222,610        195,121   
  

 

 

   

 

 

 

Total additions

     96,725,147        64,552,629   
  

 

 

   

 

 

 

Deductions from net assets attributable to:

    

Distributions to participants

     27,366,310        27,080,815   

Other deductions

     74,856        83,301   
  

 

 

   

 

 

 

Total deductions

     27,441,166        27,164,116   
  

 

 

   

 

 

 

Net increase in Plan assets before transfers

     69,283,981        37,388,513   

Transfers from (to) other plans

     (99,048     92,392   
  

 

 

   

 

 

 

Net increase in Plan assets after transfers

     69,184,933        37,480,905   

Net assets available for benefits:

    

Beginning of year

     335,804,479        298,323,574   
  

 

 

   

 

 

 

End of year

   $ 404,989,412      $ 335,804,479   
  

 

 

   

 

 

 

See Notes to Financial Statements.

 

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Table of Contents

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 the 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)), 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.

 

    

Effective January 1, 2006, the Church & Dwight Co., Inc. Profit Sharing Plan was renamed the 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 the 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 401(k) 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.

 

    

In a Stock Purchase Agreement dated August 17, 2012 with Avid Health, Inc. (“AHI”), the Company acquired AHI effective October 1, 2012. Effective October 1, 2012, the Plan was amended to allow regular salaried employees of the Vancouver/Ridgefield facilities to participate in the savings portion of the Plan.

 

    

Each former AHI employee who had met the eligibility requirements of the Northwest Natural Products, Inc. 401(k) Plan (“NNP Plan”) and had an account under the NNP Plan as of October 1, 2012 was eligible to participate in the Plan immediately. Other Vancouver/Ridgefield employees were eligible to participate in the Plan effective with

 

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CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

 

    

the first payroll period following January 1 or July 1 coincident with or next following the individual’s completion of one year of service and attainment of age 21, but in any event no earlier than January 1, 2013. Any Vancouver/Ridgefield employee who satisfied the eligibility requirements and did not start making contributions immediately may elect to begin making contributions effective with any subsequent payroll period.

 

    

Effective January 1, 2014, all Vancouver/Ridgefield Washington employees will follow the same enrollment, match and profit sharing rules as all Church & Dwight Co., Inc. employees.

 

  

Administrative expenses:

 

    

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

 

  

Contributions:

 

    

Participants may elect to make pre-tax, Roth 401(k) (effective July 1, 2009), and post-tax contributions of 1% to 6% of compensation (that are matched by the Company at the rate of $0.50 for each $1.00), provided, however, that all contributions are in fixed in multiples of 1%. Participants may also elect to make pre-tax, Roth 401(k) 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. (HCEs, highly compensated employees, are subject to separate limits). 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.

 

    

For the Plan years beginning before January 1, 2014, the Company will contribute, on behalf of each participant who is a Vancouver/Ridgefield employee, a matching contribution in an amount equal to 50% of the participant’s full pre-tax and Roth contributions (including catch-up contributions) and post-tax contributions.

 

    

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 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 the Company Stock Fund.

 

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CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

 

    

Participants who are Vancouver/Ridgefield employees are not eligible for profit sharing contributions made for Plan years beginning before January 1, 2014.

 

    

A participant will specify in which investment fund, in increments of 1%, that the Company’s profit sharing contributions to their account will be invested. However, 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.

 

    

The matching contribution and profit sharing restrictions detailed above do not apply to employees of the Company who transfer from a different location of the Company to the Vancouver/Ridgefield facilities.

 

  

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 and charged with an allocation of administrative expenses. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

 

   Vesting:

 

    

Participants are fully vested at all times in the value of their pre-tax or post-tax contributions, Roth contributions and rollover contributions and earnings thereon. Effective 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

 

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CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

 

    

retirement age or death. Employees who are approved for long-term disability are eligible for a continuing profit sharing contribution and vesting provided they do not take a distribution of their profit sharing account. The continuing profit sharing contribution and additional vesting credit ends after two years and the account balance 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.

 

  

Notes receivable from participants:

 

    

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% at the date of the loan. 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 contribution to a qualified plan or individual retirement account. In-kind distributions of Company stock are also permitted.

 

  

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 $603,571 and $372,446 for such forfeitures during the years ended December 31, 2013 and 2012, respectively. The amount in the forfeitures account was $623,437 and $375,865 as of December 31, 2013 and 2012, respectively.

 

  

Participation in the Master Trust:

 

    

Certain of the Plan’s investment assets are held in a trust account at the trustee and consist of an undivided interest in the Master Trust established by the Company and administered by the trustee. The Master Trust permits the commingling of the Plan’s assets with the assets of the Church and Dwight Co., Inc. Savings and Profit Sharing Plan for Hourly Employees for investment and administrative purposes. Although the assets of both plans are commingled in the Master Trust, the trustee maintains records for the purposes of allocating the net investment income or loss to the plans. The allocation is based on the relationship of the assets of each plan to the total of the assets in the Master Trust.

 

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Table of Contents

CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies:

 

  

Basis of presentation:

 

    

The accompanying financial statements are prepared under the accrual basis 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 statements of net assets available for benefits present 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 statements of changes in net assets available for benefits are prepared on a contract value basis for fully benefit-responsive investment contracts.

 

  

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.

 

  

Investment valuation and income recognition:

 

    

Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan’s Investment Committee determines the Plan’s valuation policies utilizing information provided by the investment advisors and the Trustee.

 

    

Investments in mutual funds are carried at fair value 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 statements of changes in net assets available for benefits. 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 includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

 

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Table of Contents

CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 2 — Summary of significant accounting policies (concluded):

 

  

Notes receivable from participants:

 

    

Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. No allowance for credit losses had been recorded as of December 31, 2013 or 2012. Delinquent notes receivable from participants are reclassified as distributions based upon the terms of the Plan document.

 

  

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, 2013 and 2012:

 

     2013     2012  

Vanguard Retirement Savings Trust IV

   $ —     $ 31,114,370   

Vanguard Retirement Savings Trust III

     32,923,696        —  

T. Rowe Price Blue Chip Growth Fund

     31,631,467        21,769,544   

PIMCO Total Return Fund

     21,429,165        27,271,517   

*Investment is less than 5% of the Plan’s net assets

 

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CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 3 — Investments (concluded):

 

    

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

 

     2013     2012  

Columbia Mid Cap Value Fund Class Z

   $ —        $ 721,803   

JP Morgan Mid Cap Value Fund

     1,476,208        —     

Munder Mid Cap Core Growth Fund

     3,440,824        1,551,065   

Neuberger Berman Genesis Fund

     3,843,412        707,469   

PIMCO Total Return Fund

     (1,254,639     754,976   

T. Rowe Price Blue Chip Growth Fund

     9,186,537        3,194,142   

Thornburg International Value Fund

     1,695,146        1,540,063   

Van Kampen Growth & Income Fund

     2,226,084        816,644   

Vanguard S&P 500 Index Fund

     3,770,286        1,373,491   

Vanguard Small Cap Index Fund

     —          436,853   

Vanguard Target Retirement 2005 Fund

     —          20,232   

Vanguard Target Retirement 2010 Fund

     89,949        98,396   

Vanguard Target Retirement 2015 Fund

     727,610        476,925   

Vanguard Target Retirement 2020 Fund

     1,294,509        771,339   

Vanguard Target Retirement 2025 Fund

     1,256,468        670,669   

Vanguard Target Retirement 2030 Fund

     1,161,900        547,767   

Vanguard Target Retirement 2035 Fund

     1,388,039        612,802   

Vanguard Target Retirement 2040 Fund

     1,250,282        511,432   

Vanguard Target Retirement 2045 Fund

     887,021        368,292   

Vanguard Target Retirement 2050 Fund

Vanguard Target Retirement 2055 Fund

    

 

560,153

41,541

  

  

   

 

203,717

11,180

  

  

Vanguard Target Retirement 2060 Fund

     4,725        145   

Vanguard Target Retirement Income Fund

     81,498        113,610   

Vanguard Wellington Fund

     1,229,240        679,119   

Vanguard Institutional Index Fund

     532,241        180,975   

Vanguard Extended Market Index Fund

     1,558,402        32,240   

Vanguard Total Bond Mkt Index Fund Signal Shares

     (48,430     (1,707

Vanguard Total Int’l Stock Index Fund Signal Shares

     57,207        7,158   
  

 

 

   

 

 

 

Totals

   $ 36,456,213      $ 16,400,797   
  

 

 

   

 

 

 

 

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CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 4 — 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 and a collective trust 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.

Note 5 — 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 6 — Tax status:

 

    

The Internal Revenue Service (the “IRS”) has determined and informed the Company by letter dated September 19, 2013 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.

 

    

Accounting principles generally accepted in the United States of America require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan administrator has concluded that the Plan has taken no uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2010.

 

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CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 7 — 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 8 — Fair value measurements:

 

    

The framework for measuring fair value 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) and the lowest priority to unobservable inputs (level 3). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows:

 

  Level 1:

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.

 

  Level 2:

Inputs to the valuation methodology include:

 

   

quoted prices for similar assets or liabilities in active markets;

 

   

quoted prices for identical or similar assets or liabilities in inactive markets;

 

   

inputs other than quoted prices that are observable for the asset or liability;

 

   

inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

    

If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

 

  Level 3:

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

    

The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs.

 

    

Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2013 and 2012. Common stocks: Valued at the closing price reported on the active market on which the individual securities are traded.

 

13


Table of Contents

Note 8 — Fair value measurements (continued):

 

    

Mutual funds: Valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value (“NAV”) and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded.

 

    

Collective trust fund: Valued at the NAV of units of a bank collective trust. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. Participant transactions (purchases and sales) may occur daily. Were the Plan to initiate a full redemption of the collective trust, the investment adviser reserves the right to temporarily delay withdrawal from the trust in order to ensure that securities liquidations will be carried out in an orderly business manner.

 

   The following tables set forth a summary of the Plan’s investments with a reported NAV at December 31, 2013 and 2012:

 

     Fair Value Estimated Using Net Asset Value per Share December 31, 2013  
Investment    Fair Value     

Unfunded

Commitment

    

Redemption

Frequency

    

Other

Redemption

Restrictions

    

Redemption

Notice

Period

 

Vanguard Retirement Savings Trust III

   $ 33,841,214         None         Immediate         None         None   
     Fair Value Estimated Using Net Asset Value per Share December 31, 2012  
Investment    Fair Value      Unfunded
Commitment
     Redemption
Frequency
     Other
Redemption
Restrictions
     Redemption
Notice
Period
 

Vanguard Retirement Savings Trust IV

   $ 32,763,779         None         Immediate         None         None   

 

  

The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2013 and 2012. The following table does not include the Plan’s interest in the Church & Dwight Co., Inc. Master Trust for Salaried and Hourly 401(k) Plans because that information is presented in a separate disclosure (see Note 11).

 

14


Table of Contents

CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 8—Fair value measurements (continued):

 

2013

   Level 1      Level 2      Level 3    Total  

Mutual funds:

           

Mid cap equity securities

   $ 23,456,034             $ 23,456,034   

Large and mid cap value stocks and bonds

     12,305,082               12,305,082   

International equities

     13,484,550               13,484,550   

Growth and income funds

     61,377,128               61,377,128   

Index funds

     25,959,608               25,959,608   

Bond funds

     22,794,092               22,794,092   

Target date funds

     65,019,109               65,019,109   

Money market funds

     808,603               808,603   

Common collective trusts

      $ 33,841,214            33,841,214   
  

 

 

    

 

 

    

 

  

 

 

 

Total assets excluding Plan’s interest in the Church & Dwight Co., Inc. Master Trust for Salaried and Hourly 401(k) Plans

   $ 225,204,206       $ 33,841,214          $ 259,045,420   
  

 

 

    

 

 

    

 

  

 

 

 

 

2012

   Level 1      Level 2      Level 3    Total  

Mutual funds:

           

Mid cap equity securities

   $ 16,141,576             $ 16,141,576   

Small cap equity securities

     13,995,171               13,995,171   

Large and mid cap value stocks and bonds

     10,015,017               10,015,017   

International equities

     12,202,004               12,202,004   

Growth and income funds

     29,118,309               29,118,309   

Index funds

     18,052,197               18,052,197   

Bond funds

     27,757,821               27,757,821   

Target date funds

     52,058,753               52,058,753   

Money market funds

     502,711               502,711   

Common collective trusts

      $ 32,763,779            32,763,779   
  

 

 

    

 

 

    

 

  

 

 

 

Total assets excluding Plan’s interest in the Church & Dwight Co., Inc. Master Trust for Salaried and Hourly 401 (k) Plans

   $ 179,843,559       $ 32,763,779          $ 212,607,338   
  

 

 

    

 

 

    

 

  

 

 

 

 

15


Table of Contents

CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 9 — Reconciliation of financial statements to Form 5500:

 

    

The following is a reconciliation of amounts reported in the 2013 and 2012 financial statements to amounts reported in the 2013 and 2012 Form 5500:

 

     2013     2012  

Net assets available for benefits, per the financial statements

   $ 404,989,412      $ 335,804,479   

Adjustment from contract value to fair value for fully benefit responsive investment contracts

     917,518        1,649,409   
  

 

 

   

 

 

 

Net assets available for benefits, per Form 5500

   $ 405,906,930      $ 337,453,888   
  

 

 

   

 

 

 

Total additions, per the financial statements

   $ 96,725,147      $ 64,552,629   

Adjustment from contract value to fair value for fully benefit responsive investment contracts

     (731,891     45,713   
  

 

 

   

 

 

 

Total additions, per Form 5500

   $ 95,993,256      $ 64,598,342   
  

 

 

   

 

 

 

Note 10 — Investment contract:

 

    

During 2008, the Plan entered into a benefit-responsive investment contract with Vanguard Retirement Savings 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.

 

16


Table of Contents

CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

Note 10 — Investment contract (concluded):

 

    

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 2013 and 2012 is presented below:

 

     2013     2012  

Average yields:

    

Trust:

    

Based on actual earnings

     2.05     2.69

Based on interest rate credited to participants

     1.56     1.82

Note 11 — Interest in Master Trust:

 

    

The Plan’s investment in Church & Dwight Co., Inc. common stock is held by the Trustee in a Master Trust. The Master Trust also holds the investment in Church & Dwight Co., Inc. common stock of the Church and Dwight Co., Inc. Savings and Profit Sharing Plan for Hourly Employees. At December 31, 2013 and 2012, the Plan’s interest in the net assets of the Master Trust were 75% and 74%, respectively and over 5% of the Plans net assets.

 

    

The following are the changes in net assets for the Master Trust for the years ended December 31, 2013 and 2012:

 

     2013     2012  
Net appreciation in fair value of investments    $ 35,569,943      $ 24,043,315   

Interest and dividends

     3,175,845        2,942,175   
  

 

 

   

 

 

 

Net investment income

     38,745,788        26,985,490   

Net transfers

     (12,776,296     (15,577,798
  

 

 

   

 

 

 

Increase in net assets

     25,969,492        11,407,692   
Net assets:     

Beginning of year

     154,538,654        143,130,962   
  

 

 

   

 

 

 

End of year

   $ 180,508,146      $ 154,538,654   
  

 

 

   

 

 

 

 

17


Table of Contents

CHURCH & DWIGHT CO., INC.

SAVINGS AND PROFIT SHARING PLAN FOR

SALARIED EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

 

    

Net assets, investment income and gains or losses are allocated to the plans based on shares held by each plan’s participants. Investments in Church & Dwight Co., Inc. common stock are carried at fair value (Level 1) as described in Note 8.

 

18


Table of Contents

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, 2013

 

Identity of Issue, Borrower, Lessor or Similar Party

   Investment
Description
     Cost      Current Value  

JP Morgan Mid Cap Value Fund

     Mutual Fund       $ 7,170,878       $ 8,561,130   

Munder Mid Cap Core Growth Fund

     Mutual Fund         9,046,669         14,894,904   

Neuberger Berman Genesis Fund

     Mutual Fund         19,283,194         18,794,385   

PIMCO Total Return Fund

     Mutual Fund         21,603,425         21,429,165   

T. Rowe Price Blue Chip Growth Fund

     Mutual Fund         17,393,687         31,631,467   

Thornburg International Value Fund

     Mutual Fund         13,055,619         13,484,550   

Van Kampen Growth & Income Fund

     Mutual Fund         7,828,935         10,951,277   

*Vanguard Extended Market Index Fund

     Mutual Fund         6,264,713         6,457,174   

*Vanguard Inst Index Fund

     Mutual Fund         18,119,458         18,648,147   

*Vanguard Prime Money Market

     Mutual Fund         808,603         808,603   

*Vanguard Target Retirement 2010

     Mutual Fund         658,147         776,253   

*Vanguard Target Retirement 2015

     Mutual Fund         6,383,796         7,638,232   

*Vanguard Target Retirement 2020

     Mutual Fund         9,103,930         11,440,974   

*Vanguard Target Retirement 2025

     Mutual Fund         8,073,315         10,112,600   

*Vanguard Target Retirement 2030

     Mutual Fund         5,969,674         7,702,548   

*Vanguard Target Retirement 2035

     Mutual Fund         6,918,077         8,992,635   

*Vanguard Target Retirement 2040

     Mutual Fund         5,730,216         7,564,572   

*Vanguard Target Retirement 2045

     Mutual Fund         3,814,715         5,086,000   

*Vanguard Target Retirement 2050

     Mutual Fund         2,636,623         3,401,606   

*Vanguard Target Retirement 2055

     Mutual Fund         267,103         311,568   

*Vanguard Target Retirement 2060

     Mutual Fund         23,271         26,138   

*Vanguard Target Retirement Inc

     Mutual Fund         1,880,581         1,965,983   

*Vanguard Total Bond Market Signal

     Mutual Fund         1,402,599         1,364,927   

*Vanguard Total International Stock Signal

     Mutual Fund         796,784         854,286   

*Vanguard Wellington Fund

     Mutual Fund         12,616,490         12,305,082   

*Vanguard Retirement Savings Trust III

     Collective Trust         32,923,696         33,841,214   

*Participant loans

     Loan         

(various maturity dates with interest rates ranging from 4.25%-8.75%)

        —           2,021,183   
     

 

 

    

 

 

 
      $ 219,774,198       $ 261,066,603   
     

 

 

    

 

 

 

*Party-in-interest.

See Report of Independent Registered Public Accounting Firm.

 

19


Table of Contents

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 27, 2014     By:   /s/ Charles Witherspoon Jr.
    Name:   Charles Witherspoon Jr.
    Title:   Vice President and Treasurer, Church & Dwight Co., Inc.
EX-23.1 2 d747737dex231.htm EX-23.1 EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in Registration Statement No. 333-112547 on Form S-8 of Church & Dwight Co., Inc. of our report dated June 27, 2014 appearing in the Annual Report on Form 11-K of the Church & Dwight Co., Inc. Savings & Profit Sharing Plan for Salaried Employees as of December 31, 2013 and 2012 and for the year ended December 31, 2013.

/s/ CohnReznick LLP

Roseland, New Jersey

June 27, 2014

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