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  "documentTitle": "Church & Dwight Co., Inc. (CHD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-05 00:00:00",
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  "notes": "Uses a 'before-after' or 'contradiction' framing to highlight the gap between executive rhetoric and financial reporting.",
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      "kind": "callout",
      "text": "The acquisition comes with a pipeline of new products to drive double-digit sales growth... There is a robust innovation pipeline that comes along with the business. So it's not a one-trick pony. We got things coming up in 2020 - 2021",
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      "text": "I actually said that we really don't expect material synergies over the next two, three, four years because we do have a service agreement in place.... we're not calling or quantifying any synergies because we're focused on just - like Matt said, making them hit their $900 million earn-out and have the support that Church & Dwight would give and innovation that those guys would have",
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      "text": "It’s a huge red flag when management says one thing and does another. The CFO specifically said there would be no deal synergies for at least four years, yet it assigned $88m to goodwill, which it is using to reduce U.S. taxes and underpay the IRS.",
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      "text": "It's a huge red flag when management says one thing and does another. The CFO specifically said there would be no deal synergies for at least four years, yet it assigned $88m to goodwill, which it is using to reduce U.S. taxes and underpay the IRS.",
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      "text": "The goodwill and other intangible assets associated with the Flawless Acquisition are deductible for U.S. tax purposes. The goodwill is a result of expected synergies from combined operations of the acquisition and the Company.",
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      "text": "I actually said that we really don't expect material synergies over the next two, three, four years because we do have a service agreement in place.... we're not calling or quantifying any synergies because we're focused on just - like Matt said, making them hit their $900 million earn-out and have the support that Church & Dwight would give and innovation that those guys would have — CFO on Deal Conf Call 3/28/19",
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      "kind": "source-note",
      "text": "Source: CHD 2019 Q2 10-Q, p. 23 – Filed July 31, 2019 four months later",
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      "text": "Trade name 447.3; Other intangible assets 121.8; Goodwill 87.9; Contingent consideration (182.0); Cash purchase price 475.0",
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      "kind": "title",
      "text": "Is CHD A Government Tax Dodger?",
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