Slide 1: Church & Dwight Co., Inc. CAGNY
CHURCH & DWIGHT CO., INC. CAGNY February 23, 2018
Slide 2: Agenda
01 – THE SHORT STORY 06 – INTERNATIONAL STORY 02 – WHO WE ARE 07 – ANIMAL PRODUCTIVITY STORY 03 – STATE OF THE BUSINESS 08 – HOW WE RUN THE COMPANY 04 - 2018 INNOVATION 09 – FINANCIALS 05 – DIGITAL CAPABILITIES 2
Slide 3: The Short Story
01 THE SHORT STORY
Slide 4: The Short Story
The Short Story 2017 was another solid year. We have confidence in 2018 and beyond... Consistent innovation Digital capabilities growing International growth continues Animal Productivity opportunity 4
Slide 5: Who We Are
02 WHO WE ARE
Slide 6: We have an Evergreen Business Model
We have an Evergreen Business Model Organic Sales Growth 3% EPS Growth 8% 6
Slide 7: Power Brands
TROANR = Nii fous) 11 sranos Baliste waterpi k:
Slide 8: These Brands Drive Our Results
These 11 Brands Drive Our Results more than 80% of sales & profits are represented by these 11 POWER BRANDS 8
Slide 9: Our Portfolio Is Balanced & Diversified
Our Portfolio Is Balanced & Diversified A well-balanced portfolio of household and personal care products. Household: 47% Specialty Products: Personal Care: 8% 45% 9
Slide 10: Diversified Product Portfolio
Diversified Product Portfolio Our Unique Product Portfolio Has Both Value and Premium Products Premium: 60% Value: 40% 10
Slide 11: We Operate in the Land of Giants
We Operate in the Land of Giants 2017 Net Sales (billions) $65.1 $55.5 $18.3 $15.5 $12.2 $6.0 $3.8 P&G Unilever Kimberly Clark Colgate Reckitt Clorox Church & Dwight Source: 2017 SEC Filings and Corporate Websites 11
Slide 12: Nimble Organizational Structure
Nimble Organizational Structure quick decision easy ability to making communication adapt 12
Slide 13: We are an Acquisition Platform
We are an Acquisition Platform BBB+ Revenue Operational Excellent Access to Growth Efficiencies Integration Capital Track Record 13
Slide 14: Long History of Growth Through Acquisitions
Long History of Growth Through Acquisitions net sales in billions $4.5 $4.0 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.5 $1.0 $0.5 $- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Note: Trojan, Nair and First Response acquired in two parts – 2001 and 2004. 14
Slide 15: Acquired 10 of our 11 Power Brands Since 2001
Acquired 10 of our 11 Power Brands Since 2001 Acquired 2001 Acquired 2001 Acquired 2001 Acquired 2001 Acquired 2005 #1 Extreme Value Laundry #1 Battery Powered #1 Condom #1 Pregnancy Kit #1 Depilatory Detergent Toothbrush Acquired 2006 Acquired 2008 Acquired 2011 Acquired 2012 Acquired 2017 #1 Power
Slide 16: We Have Clear Acquisition Criteria
We Have Clear Acquisition Criteria Primarily #1 Higher growth, Asset Light Leverage CHD Deliver or #2 share higher margin capital base in sustainable brands brands manufacturing, competitive logistics and advantage purchasing 16
Slide 17: Catching a wave with our acquisitions
Catching a wave with our acquisitions 17
Slide 18: Dry Shampoo
“Dry Shampoo” of women do not 80% wash their hair daily Acquired 2011 18
Slide 19: Gummies vs Pills & Capsules
“Gummies vs Pills & Capsules” of adult VMS is 12% now gummy form. Acquired 2012 * all other category includes powders, liquids, etc. 19
Slide 20: Hair – Thinning Solutions
“Hair – Thinning Solutions” of men and women will have 40% noticeable hair loss by age forty. Acquired Acquired 2015 2016 20
Slide 21: Demand for Non-Antibiotic Foods
“Demand for Non-Antibiotic Foods” Acquired 2015 Acquired 2017 21
Slide 22: Need for Better Flossing Solutions
“Need for Better Flossing Solutions” 55% of non-flossers 16% say flossing is say “too time “too painful” consuming” Source: American Dental Association, October 2017 22
Slide 23: 2017 Acquisition: 11th Power Brand
2017 Acquisition: 11TH Power Brand #1 power flosser, #1 showerhead replacement 23
Slide 24: 11 Power Brands Today, 20 Tomorrow
11 Power Brands Today, 20 Tomorrow Net sales in billions $4.0 $3.5 11 $3.0 10 9 $2.5 8 $2.0 7 6 $1.5 $1.0 5 $0.5 1 $0.0 … 1846 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: Trojan, Nair and First Response acquired in two part
Slide 25: State of the Business
O03 STATE OF THE BUSINESS
Slide 26: All Three Businesses Are Healthy
All Three Businesses Are Healthy 2017 Consumer Domestic 2017 Consumer International 2017 Specialty Products organic sales: 1.4% organic sales: 7.8% organic sales: 5.3% net sales: ~$2,850M net sales: ~$600M net sales: ~$300M Organic sales is a non-GAAP measure. Please refer to the Appendix for a reco
Slide 27: Measured Channels - Church & Dwight Report Card
Measured Channels - Church & Dwight Report Card 2013 2014 2015 2016 2017 7 out of 11 power brands grew share in 2017. share increase share unchanged share decreased Source: Nielsen Total U.S. AOC 27
Slide 28: "All In" Category Growth is Healthy
“All In” Category Growth is Healthy ALL IN NON – CATEGORY MEASURED MEASURED GROWTH ~1.7% ~1.0% ~2.7% Source: Nielsen Total U.S. AOC & Company Estimates 28
Slide 29: Private Label Shares are Stable
Private Label Shares are Stable Only 5 of our 14 categories have private label exposure. PREGNANCY TEST KITS BAKING SODA GUMMY VITAMINS 40% 30% 20% 25% 30% 15% 20% 20% 15% 10% 10% 10% 5% 5% 0% 0% 0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 ORAJEL EQUIVALENT CLUMPING
Slide 30: 2018 Innovation
04 2018 INNOVATION
Slide 31: Build on SLIDE Success in 2018
Build on SLIDE Success in 2018 In 2017, SLIDE had the #2 highest repeat among the past 15 category launches, next to #1 Clump & Seal. 31
Slide 32: Unscented Clump & Seal Lightweight
Unscented Clump & Seal Lightweight with powerful odor neutralizers Unscented litter is growing in appeal. 32
Slide 33: Odor Blasters
Odor Blasters Eliminates tough odors. “Odor is the new stain” 33
Slide 34: Gummy Probiotics
Gummy Probiotics Supports digestive health by providing friendly bacteria to the gut. Health starts in the gut. 34
Slide 35: First Response Triple Check
First Response Triple Check Get results three ways. Hopeful positives will test early and often. 35
Slide 36: Batiste Naughty & Nice
Batiste Naughty & Nice Dry shampoo to match your mood 36
Slide 37: Waterpik Whitening Water Flosser
Waterpik Whitening Water Flosser Precision whitening while you floss. Convenience of whitening while flossing 37
Slide 38: Waterpik Pet Wand Pro
Waterpik Pet Wand Pro Watercomb spray for a more effective clean. Shampooing your dog is a challenge. 38
Slide 39: Digital Capabilities
05 (())) DIGITAL Ni CAPABILITIES
Slide 40: Church & Dwight Online Sales
Church & Dwight Online Sales 5% 2% 1% 2015 2016 2017 40
Slide 41: How Did We Accelerate?
How Did We Accelerate? Skilled in digital advertising Growing expertise in digital attribution models DTC Developing our DTC skills Group 41
Slide 42: Consumers are online over 5½ hours per day
consumers are online over 5½ hours per day Source: eMarketer 9/14 (2008-2010), eMarketer 4/15 (2011-2013), eMarketer 4/17 (2014-2016). Note: Other connected devices include OTT and game consoles. Mobile includes smartphone and tablet. Usage includes both home and work. Ages 18+; time spent with each
Slide 43: Online presents great opportunities for Church & Dwight
Online presents great opportunities for Church & Dwight… 43
Slide 44: …while obtaining great consumer insights…
…while obtaining great consumer insights… 44
Slide 45: …which leads to better targeting
…which leads to better targeting, a better message and better results. 45
Slide 46: Predictive Modeling Drives Results
Predictive Modeling Drives Results +12% 46
Slide 47: OxiClean: A Great Example Of Targeting
OxiClean: A Great Example Of Targeting 47
Slide 48: Targeting Wine Drinkers
Targeting Wine Drinkers DEAR OXICLEAN,
Slide 49: OxiClean – The Result?
OxiClean – The Result? greater than 50% market share 49
Slide 50: Direct-to-Consumer Skills via Acquisitions
Direct-to-Consumer Skills via Acquisitions 2016 DTC Group 2017 50
Slide 51: Skills in Online Advertising
Skills in Online Advertising PRESENT & PAST FUTURE Features Emotion & Benefits & Humor 51
Slide 52: Kaboom – Having Fun With How Online Works
Kaboom – Having Fun With How Online Works 52
Slide 53: Consumers are Online
Consumers are Online over 35% of our advertising spend is online a majority of our products have 4.5 stars or higher 53
Slide 54: Church & Dwight Products - #1 on Amazon
Church & Dwight Products - #1 on Amazon 54
Slide 55: Church & Dwight Products - #1 on Amazon
Church & Dwight Products - #1 on Amazon 55
Slide 56: Church & Dwight Products - #1 on Amazon
Church & Dwight Products - #1 on Amazon greater than 50% market share 56
Slide 57: The Future is Bright
The Future is Bright • #1 online market shares • Growing expertise in digital attribution models • Developing our DTC skills DTC Group • Skilled in connecting with consumers 57
Slide 58: International Story
O06 INTERNATIONAL STORY
Slide 59: International Business is Growing Organically
International Business is Growing Organically EVERGREEN 10.0% 6.0% GROWTH 8.1% 7.8% TARGET 6.0% 3.7% 3.3% 2013 2014 2015 2016 2017 2018E Note: Organic sales growth is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most directly comparable GAAP measure. 59
Slide 60: Developed Markets – Leveraging Markets & Brands
Developed Markets – Leveraging Markets & Brands North America Europe North Asia (UK) 60
Slide 61: Emerging Markets – Leveraging Markets & Brands
Emerging Markets – Leveraging Markets & Brands China & SE Asia South America Middle East & Africa 61
Slide 62: International Net Sales Composition
International Net Sales Composition Europe 22% 2017 International Canada Australia 10% Net Sales: 31% Mexico 8% ~$600 million 81% Total Export* 26% United States Brazil 3% *Includes exports from our subsidiaries to over 100 countries. 62
Slide 63: Established Export Offices in Panama, Singapore and UK
Established Export Offices in Panama, Singapore and UK denotes new office 63
Slide 64: Transforming Church & Dwight's Asia Pacific Business
Transforming Church & Dwight’s Asia Pacific Business 64
Slide 65: Transforming Church & Dwight's Asia Pacific Business
Transforming Church & Dwight’s Asia Pacific Business 65
Slide 66: International Has Achieved Critical Mass
International Has Achieved Critical Mass OVER $600MM NET SALES IN 2017 Leveraging our global platform to drive growth of acquired businesses. 66
Slide 67: Positioned for 6% Organic Growth
Positioned for 6% Organic Growth • Brands have significant runway • Acquired brands are big opportunity • Exports grow double digits • Investment in SE Asia & China 67
Slide 68: Animal Productivity Story
07 ANIMAL PRODUCTIVITY STORY
Slide 69: Animal Productivity Opportunity
Animal Productivity Opportunity EVERGREEN 5.0% GROWTH TARGET OVER $200MM NET SALES IN 2017 69
Slide 70: Humans are consuming resources faster than we are replacing them
Humans are consuming resources faster than we are replacing them. Source: World Wild Life Fund and the Global Footprint Network 70
Slide 71: Improving Productivity is Key
Improving Productivity is Key Control Change What Leverage Population We Eat Technology 71
Slide 72: An Example of the Significance of Improved Productivity
An Example of the Significance of Improved Productivity ½ glass Just per cow per day…reduces the need to add 66,000,000 Feed to fill 6,000 Land the Size of Alaska Water to Supply Which saves: Source: Elanco Animal Health 72
Slide 73: Consumers Drive Alternatives to Traditionally Raised Livestock
Consumers Drive Alternatives to Traditionally Raised Livestock Consumers Retailers Farmers no antibiotics ever no added hormones no chemicals added 73
Slide 74: Natural Solutions: Nutritional Supplements
Natural Solutions NUTRITIONAL SUPPLEMENTS 74
Slide 75: Acquisitions Created a More Balanced Business…
Acquisitions Created a More Balanced Business… % Non-Dairy Sales 2015 2017 2018E 75
Slide 76: …and an International Presence
…and an International Presence % International Sales 2015 2017 2018E 76
Slide 77: Positioned for 5% Organic Growth
Positioned for 5% Organic Growth • Trusted brand • Aligned with consumers trend • Multiple species • Global growth 77
Slide 78: How We Run the Company
08 HOW WE RUN THE COMPANY
Slide 79: We Have 4 Operating Principles
We Have 4 Operating Principles 1 LEVERAGE BRANDS #1 brands Brands Consumers Love 2 LEVERAGE ASSETS Asset light 3 LEVERAGE PEOPLE Highly productive people 4 LEVERAGE ACQUISITIONS GOOD shareholder returns become GREAT shareholder returns 79
Slide 80: Key Gross Margin Growth Drivers
Key Gross Margin Growth Drivers Good to Supply Chain Great Cost Optimization Optimization Acquisition New Synergies Products 80
Slide 81: Incentive Compensation Directly Linked to TSR
Incentive Compensation Directly Linked to TSR 1. Bonuses tied 100% to NET business results REVENUE GROSS MARGIN 2. Equity compensation is EXPANSION 100% stock options EPS 3. Management required to be CASH FROM OPERATIONS heavily invested in company stock 81
Slide 82: All CHD Employees Focus on Gross Margin
All CHD Employees Focus on Gross Margin GROSS MARGIN IS 25% OF ALL EMPLOYEES’ ANNUAL BONUS. 82
Slide 83: Financials
.\ a - FINANCIALS
Slide 84: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, including, among others, statements relating to net sales and earnings growth; gross margin changes; trade and marketing spending; marketing expense as a percentage of net sales; sufficiency of cash flows from operations; e
Slide 85: Evergreen Model
Evergreen Model TSR Model Organic Net Sales Growth +3.0% Gross Margin +25 bps Marketing FLAT SG&A -25 bps Operating Margin ∆ +50 bps EPS Growth 8% 85
Slide 86: Evergreen Model – Organic Sales
Evergreen Model – Organic Sales Total Domestic International SPD Organic Sales +2.0% +6.0% +5.0% +3.0% 86
Slide 87: Q4 2017 Highlights – Strong Finish
Q4 2017 Highlights – Strong Finish Domestic: 2.7% Organic sales growth +3.4% International: 5.8% SPD: 5.1% Consumer organic +3.2% Adjusted gross margin +50 bps Adjusted operating margin +90 bps Adjusted EPS +18.2% to $0.52 Organic sales, adjusted gross margin, adjusted operating margin, and adjusted
Slide 88: 2017 Quarterly Organic Sales
2017 Quarterly Organic Sales 3.4% 3.2% 2.3% 1.8% Q1 Q2 Q3 Q4 88
Slide 89: 2 Year Stacked Quarterly Organic Sales – Global Consumer
2 Year Stacked Quarterly Organic Sales – Global Consumer 8.5% 6.7% 6.6% 6.1% 5.4% Q1 Q2 Q3 Q4 FY 2016 2017 Organic sales is a non-GAAP measure. Please refer to the Appendix for a reconciliation to net sales, the most directly comparable GAAP measure. 89
Slide 90: Full Year 2017 Highlights
Full Year 2017 Highlights Domestic: 1.4% Organic sales growth +2.7% International: 7.8% SPD: 5.3% Adjusted gross margin +10 bps Marketing % -20 bps to 12.0% Adjusted SG&A +70 bps to 13.3% Adjusted operating margin -40 bps Adjusted EPS +9.6% to $1.94 Free Cash Flow $637MM Adjusted FCF Conversion 123%
Slide 91: We are exiting 2017 with strong momentum
We are exiting 2017 with strong momentum. 91
Slide 92: 16% - 18% Adjusted EPS Growth in 2018
16% - 18% Adjusted EPS Growth in 2018 2018 Outlook Reported Sales 8% Organic Sales ~3% Adjusted Gross Margin flat Marketing flat SG&A + Adjusted Operating Margin - FY Other Expense ~($70MM) Adjusted Effective Tax Rate 24% - 25% Adjusted EPS 16% - 18% Outlook as of February 5, 2018. Organic sales, ad
Slide 93: CHD Consistent Solid Organic Sales Growth
CHD Consistent Solid Organic Sales Growth 3.5% 3.6% 3.2% ~3.0% 2.7% 1.9% 2013 2014 2015 2016 2017 2018E Note: Organic sales growth is a non-GAAP measure. Refer to the Appendix for a reconciliation to net sales the most comparable GAAP measures. 93
Slide 94: Focus on Gross Margin
Focus on Gross Margin 45.7% 45.8% 45.8% 45.0% 44.5% 44.1% 2013 2014 2015 2016 2017 2018E Note: Percentages are adjusted gross margin, a non GAAP measure. See appendix for adjustments to gross margin presented in accordance with GAAP. 94
Slide 95: Commodities & Distribution Costs Continue to Rise
Commodities & Distribution Costs Continue to Rise resin surfactants diesel transportation 95
Slide 96: Consistent Marketing Spend
Consistent Marketing Spend 12.5% 12.6% 12.3% 12.2% 12.0% ~12.0% 2013 2014 2015 2016 2017 2018E 96
Slide 97: Superior SG&A Management
Superior “SG&A” Management • Acquisition higher rate + • Amortization 13.3% 13.0% 12.6% 12.1% 12.1% 2013 2014 2015 2016 2017 2018E Note: Adjusted SG&A is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measures. Excludes Waterpik. 97
Slide 98: SG&A Flat Excluding Acquisition Amortization
“SG&A” Flat Excluding Acquisition Amortization Flat 12.4% 12.1% + 11.0% 10.9% 11.3% 11.6% 2012 2013 2014 2015 2016 2017 2018E Note: Adjusted SG&A is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measures. Excludes Waterpik. 98
Slide 99: Consistent Strong Adjusted EPS Growth
Consistent Strong Adjusted EPS Growth $2.24 – $2.28 $1.94 $1.77 16% - $1.62 18% $1.51 9.6% $1.40 9.3% 7.3% 7.9% 13.8% 2013 2014 2015 2016 2017 2018E 99
Slide 100: Cash Flow Generator
EPC CHD AVP CLX CL HSY RB-GB EL K GIS KMB 2017 Revenue ($) KHC Cash Flow Generator KO PEP PG KO KHC HSY K RB-GB PEP EPC GIS EL CLX CL KMB PG 2017 FCF Conversion (%) AVP CHD 100
Slide 101: Cash Conversion Cycle
Cash Conversion Cycle Tight Control of Working Capital Drives CCC Improvement. 52 40 34 36 32 32 27 21 18 2009 2010 2011 2012 2013 2014 2015 2016 2017 Days 101
Slide 102: Strong Balance Sheet
Strong Balance Sheet Total Debt/Bank EBITDA 2.6x 1.4x 1.5x 1.4x 1.4x 1.2x 2012 2013 2014 2015 2016 2017 2018E 2019E Note: Total debt/EBITA is a non-GAAP measure. Refer to the Appendix for a reconciliation to the most comparable GAAP measures. 102
Slide 103: Prioritized Uses of Free Cash Flow
Prioritized Uses of Free Cash Flow 1 TSR-Accretive M&A 2 Debt Reduction 3 New Product Development 4 Capex For Organic Growth & G2G 5 Return Of Cash To Shareholders 103
Slide 104: Significant Financial Capacity
Significant Financial Capacity As of December 31, 2017 (in $millions) Cash & Cash Equivalents on Hand $250 Acquisition Power: Leverage Capacity $1,250 $1.5B Credit Rating Current Debt $2,400 BBB+/Baa1 ▪ 2017 Bank EBITDA = $951M ▪ Leverage capacity to 3.50x EBITDA ▪ Example: Acquisition EBITDA multip
Slide 105: Minimal Capital Investment
Minimal Capital Investment Capital Expenditures as a % of Sales $100 $90 $80 2.1% 1.7% 2.1% $70 1.8% $11 $35 $8 $60 VMS VMS Capacity Capacity $16 1.4% VMS 1.2% $50 Capacity $62 $56 $40 $50 $45 $45 $36 $30 2013 2014 2015 2016 2017 2018 Major Projects On-going CapEx 105
Slide 106: 14% Dividend Increase in 2018
14% Dividend Increase in 2018 $0.87 $0.76 +14% $0.71 $0.67 117 $0.56 +17% $0.62 +11% +8% +11% +6% +8% +11% +7% +6% +8% +7% consecutive +17% +41% +17% +41% years of +119% dividends +35% 2013 2014 2015 2016 2017 2018 106
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Slide 108: Reconciliations
Reconciliations www.churchdwight.com 108
Slide 109: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Church & Dwight Co., Inc.’s Reconciliation of Non-GAAP Measures: The following pages provide definitions of the non-GAAP measures used in this presentation and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures. These non-GAAP
Slide 110: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Organic Sales Growth: The presentation provides information regarding organic sales growth, namely net sales growth excluding the effect of acquisitions, divestitures, the change in customer shipping arrangements, foreign exchange rate changes, the impact of an in
Slide 111: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Gross Profit and Gross Profit Margin This presentation discloses the Company’s Gross Profit and Gross Profit Margin. Adjusted Gross Profit and Gross Profit Margin , as used in this presentation, is defined as gross profit excluding significant one-time it
Slide 112: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted EPS: This presentation discloses reported EPS excluding the following, namely, earnings per share calculated in accordance with GAAP adjusted to exclude significant one-time items that are not indicative of the Company’s period to period performance. We b
Slide 113: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted SG&A: This presentation discloses the Company’s SG&A expenses as a percent of net sales. Adjusted SG&A, as used in this presentation, is defined as selling, general and administrative expenses excluding significant one-time items that is not indicative of
Slide 114: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Operating Profit and Margin: The presentation discloses Operating Income and margin (a GAAP measure) and Adjusted Operating Income and margin (a non-GAAP measure) which excludes significant one time items. We believe that excluding the significant one-tim
Slide 115: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Free Cash Flow: Free cash flow (a non-GAAP measure) is defined as cash from operating activities (a GAAP measure) less capital expenditures (a GAAP measure). Management views free cash flow as an important measure because it is one factor in determining the amount
Slide 116: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Total Debt to Bank EBITDA: Total Debt to Bank EBITDA is a ratio used in our debt agreements. Bank EBITDA (a non-GAAP measure) is a form of adjusted EBITDA, and represents earnings from Income (a GAAP measure), excluding interest income, interest expense, and befor
Slide 117: Total Company Organic Sales Reconciliation
Total Company Organic Sales Reconciliation System Calendar/ Shipping Year Reported FX Acq/Div Disc. Ops. Upgrade Other Terms Organic 2017 8.1% 0.0% -5.4% 0.0% 0.0% 0.0% 0.0% 2.7% 2016 2.9% 1.2% -0.9% 0.0% 0.0% 0.0% 0.0% 3.2% 2015 2.9% 2.7% -2.0% 0.0% 0.0% 0.0% 0.0% 3.6% 2014 3.2% 0.5% -0.2% 0.0% 0.0
Slide 118: Reported & Adjusted Non Gaap Reconciliations
Reported & Adjusted Non Gaap Reconciliations For the year ending December 31, 2017 2016 2015 Adjusted Gross Margin Reconciliation Gross margin Reported 45.8% 45.5% Brazil Charge 0.0% 0.2% Gross Margin - Adjusted (non-gaap) 45.8% 45.7% Adjusted SG&A Reconciliation SG&A - Reported 14.4% 12.4% Pension
Slide 119: SG&A less Amortization Expense Reconciliation
Church & Dwight Co., Inc. and Subsidiaries SG&A less Amortization Expense Reconciliation 2017 2016 2015 2014 2013 2012 SG&A as % of Net Sales - Reported 14.4% 12.6% 12.4% 12.0% 13.0% 13.3% Pension Settlement Charge -1.0% 0.0% -0.3% 0.0% 0.0% 0.0% Brazil Charge -0.1% Amortization Expense -1.7% -1.3%
Slide 120: Total Debt to Bank EBITDA Reconciliation
Church & Dwight Co., Inc Total Debt to Bank EBITDA Reconciliation ($ in millions) 2017 2016 2015 2014 2013 2012 Total Debt as Presented (1) $ 2,374.3 $ 1,120.1 $ 1,050.0 $ 1,086.6 $ 797.3 $ 895.6 Other Debt per Covenant (2) 59.2 75.1 83.5 88.0 90.3 79.1 Total Debt per Credit Agreement $ 2,433.5 $ 1,