{
  "docId": "019dd923-622c-750b-8b98-c3e7825e1948",
  "docSlug": "8b6a62f49fba",
  "documentTitle": "Church & Dwight Co., Inc. (CHD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-05 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 77,
  "pageCount": 92,
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  "slideType": "expose_contradiction",
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  "density": "balanced",
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  "notes": "The slide uses a red box to highlight the specific discrepancy in the 'Cash From Operations' row of the compensation table.",
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      "kind": "callout",
      "text": "CHD reported $763.6m of operating cash flow in 2018. Yet, according to its bonus calculation, actual performance was $771m. So is it claiming better cash flow performance? The difference of $7.5m is exactly the amount of factored receivables in 2018.",
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      "text": "Cash From Operations: $771m",
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      "componentId": "019dd953-1ac2-71b6-bf56-89f678a14011",
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      "kind": "paragraph",
      "text": "CHD's annual incentive plan is based on four equal financial factors. We will show how CHD manipulates every single metric to its advantage. Evidence points to management padding its cash flow metric for bonus calculations by adding back factored receivables in 2018.",
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      "kind": "source-note",
      "text": "Source: 2018 Proxy Statement, p. 46",
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      "kind": "table",
      "text": "2018 Annual Incentive Plan Performance Ranges, Actual Performance and Performance Ratings",
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      "kind": "title",
      "text": "Manipulative Cash Flow To Reap Unjust Bonuses",
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      "evidence": "The overall thesis implies that failing to act on Spruce Point's analysis could lead to significant financial losses for investors holding onto CHD stock.",
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      "objective": "The cost of not selling CHD",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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