{
  "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": 79,
  "pageCount": 92,
  "prevPage": 78,
  "nextPage": 80,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 27,
  "notes": "Uses a table of non-GAAP reconciliations and a snippet from a 10-K to highlight the accounting change.",
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  "slideHref": "/slides/019dd923-622c-750b-8b98-c3e7825e1948/79",
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  "components": [
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      "kind": "metric",
      "text": "gross margin",
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      "kind": "paragraph",
      "text": "On April 1, 2018, the Company changed its method of accounting for inventories from last-in-first-out (“LIFO”) to first-in-first-out (“FIFO”)... The cumulative effect of the change in accounting principle of approximately $4.0 pre-tax was recorded as a decrease to cost of goods sold for the quarter ending June 30, 2018.",
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      "kind": "paragraph",
      "text": "In our opinion, the “adjusted” gross margin and operating profit margins that CHD represents are demonstrably inaccurate. CHD pretends that an inventory accounting change that boosted gross margin by $4m should not be “adjusted”.",
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      "kind": "source-note",
      "text": "Source: 2018 10-K, p. 55",
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      "kind": "source-note",
      "text": "Source: 2019 Analyst Day Presentation",
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      "kind": "table",
      "text": "Reported & Adjusted Non GAAP Reconciliations table showing margins for 2016-2018",
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      "kind": "title",
      "text": "An Adjustment By Any Other Name....",
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      "evidence": "The slide explicitly calls out inaccurate reporting and hidden accounting adjustments.",
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      "name": "Cost Of Inaction",
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      "bestFor": "Urgent budget requests, compliance, risk mitigation",
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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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