Church & Dwight (CHD) as of March 31, 2026 presents a deeply negative liquidation posture, consistent with its prior-period profile and the MFFAIS-reported CLV of approximately -$3.3B. Total assets of $9.0B are dominated by intangibles ($3.5B net, including $2.6B goodwill and $1.8B finite-lived intangibles) and goodwill that carry zero recovery under liquidation assumptions. Applying standard haircuts: cash $503M (100% = $503M), AR $577M (92.5% = $533M), inventory $578M (60% = $347M), PP&E net $824M (60% = $494M), intangibles/goodwill $3.5B (0% = $0), other assets ~$713M (minimal recovery). Gross liquidation asset recovery approximates $1.9-2.0B before any contingent items. Against this, total liabilities stand at $4.8B at face value: current liabilities $1.4B (including $730M AP, $197M contingent acquisition consideration, and $452M other accrued), long-term debt $2.2B, deferred tax liabilities $892M, operating lease liabilities $172M, and other noncurrent liabilities $310M. The liability stack of $4.8B materially exceeds recoverable asset value, yielding a negative equity recovery in the range of -$2.8B to -$3.1B, consistent with MFFAIS figures. Key drivers of the negative gap are: (1) goodwill of $2.6B and finite-lived intangibles of $1.8B that collectively represent ~48% of total assets but contribute zero in liquidation; (2) long-term debt of $2.2B that stays at face; (3) a $197M contingent consideration liability (Touchland acquisition earnout, current portion) that does not extinguish on wind-up; (4) deferred tax liabilities of $892M which remain a claim on liquidation proceeds. Since the prior 10-K filing (December 31, 2025), the balance sheet reflects Q1 2026 normal operating activity: cash increased ~$94M on positive OCF of $175M, inventory rose modestly (+$45M per cash flow), and goodwill was essentially flat ($2.6B). No material debt issuances, restructurings, or impairments occurred in Q1 2026. The portfolio rationalization from 2025 (vitamin divestiture, Flawless/Spinbrush/Waterpik exits) is fully reflected; the Touchland acquisition (July 2025) introduced the $197M contingent consideration liability now sitting in current liabilities. Recovery posture is unchanged from year-end: equity holders receive nothing in a forced liquidation.
▼ Community Notes