Good morning, ladies and gentlemen, and welcome to the Church & Dwight conference call. Before we begin, I have been asked to remind you that on this call, the company's management may make forward-looking statements regarding, among other things, Church & Dwight's financial objectives and forecasts. As you know, risk and uncertainties involved in Church & Dwight's business may affect the matters referred to and forward-looking statements. As a result, the company's performance may materially differ from those expressed and/or indicated by such forward-looking statements. Church & Dwight will be discussing their results as reported on a GAAP basis and also on a non-GAAP basis. The company believes the non-GAAP financial measures provide investors with useful supplemental information about the financial performance of its business, enable comparisons of financial results between periods where certain items may vary independent of business performance and allow for greater transparency with respect to key metrics used by management in operating their business. These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding GAAP measures. See the Appendix in this morning's press release for a reconciliation. I would now like to introduce your host for today's call, Mr. Matt Farrell, Chief Executive Officer of Church & Dwight. Please go ahead, sir. Matthew T. Farrell - Church & Dwight Co., Inc.: Good morning, everyone. Thanks for joining us today. I'll provide some color on the quarter, and then turn the call over to Rick Dierker, our CFO. And when Rick is finished, we'll have a Q&A session. We're happy with our organic sales growth of 1.8%. This was in line with our Q2 outlook of approximately 1% to 2%. The 1.8% organic growth was driven by continued strong performance from international consumer business and…

And our first question comes from Dara Mohsenian from Morgan Stanley. Your line is open. Dara W. Mohsenian - Morgan Stanley & Co. LLC: Hey, guys. Matthew T. Farrell - Church & Dwight Co., Inc.: Hey, Dara. Dara W. Mohsenian - Morgan Stanley & Co. LLC: So, two questions. First, I was just hoping we could discuss the promotional levels in the quarter a bit more. The domestic consumer business obviously price mix is down significantly by 6%. It seems like it's kind of a unprecedented level of promotional spending. So I just wanted to understand better the decision making behind that large a magnitude of higher spend or lower price and how much of that continues or lingers going forward? And has something changed here longer-term in terms of the competitive spending levels that's necessary or sort of the cost of doing business in the industry? Thanks. Matthew T. Farrell - Church & Dwight Co., Inc.: Yeah. It's a good question. I wouldn't look at that as a sea change at all Dara. I think, if you looked at historical numbers, you would see for us that we were actually on more on the sidelines when it came to the amount that we promoted on products, particularly in laundry. So, but we had two new innovations this past quarter, the Triple Chamber and also the OXICLEAN restage. So, we wanted to get behind those in a significant way, which is what we did in order to promote trial. And in my remarks, I said we had very high promotional effectiveness and what that means is that you're able to steal share from other brands to your brand as a result of your promotion. So, that's a good measure of whether or not they're effective, but you can't keep that…

Thank you. And our next question comes from Kevin Grundy from Jefferies. Your line is open.

Thanks. Good morning guys. Richard A. Dierker - Church & Dwight Co., Inc.: Hey, Kevin. Matthew T. Farrell - Church & Dwight Co., Inc.: Hey, Kevin.

So question on the guidance. Just wanted to make sure I was clear in terms of how the year is progressing here. So it seems like international momentum continues. That's now expected to be a little bit better. Specialty looks like it's going to be considerably better and consumer domestic a bit worse. And then to bring this back to the EPS guidance, it looks like on an FX neutral basis that comes down by about a point. So Matt, is that just around – is it higher investment levels than you anticipated? I think, category growth maybe slowed half a point, maybe a function of mix with personal care probably not coming in quite where you expected year-to-date and that being a higher margin than the household side. So just – can you maybe quantify a bit that point that came down on the FX neutral guide? Richard A. Dierker - Church & Dwight Co., Inc.: Yeah. I'll take that, Kevin. It's a couple of things, really. You're right. Domestic, we brought down slightly. Personal care in the front half was negative in the quarter especially, but we believe that's going to turnaround because of the comps and other category growth in the back half. So we feel good about that. To the degree that we get any benefits from FX, remember we're typically spending that back. So to be blunt, our marketing line will probably go up slightly versus our previous expectations. We're not changing anything. So we just reinvest that if we need to. So I guess, that's a short answer.

Okay. That's kind of what I had figured. Just one follow-up from me and then I'll pass it on. Just getting back to the promotional intensity in laundry, and it seems like Procter ramped its level of trade spend pretty significantly through mid July. Matt, would you care to comment on what you saw in the back half of July? Did you see that level continue? You guys obviously ramped pretty considerably. What's sort of the expectation with respect to laundry here for the balance of the year and do you have enough in the guidance to sort of combat any level, should it remain this elevated? Thanks. Richard A. Dierker - Church & Dwight Co., Inc.: Yeah. Kevin, I'll take the first part maybe. P&G and everybody always continues to, it's a promotional category, laundry is always a promotional category. But in the long term, if you take a step back, what's happening at the end of the day, the premium tier usually wins with innovation and the value tier wins because of value and the mid-tier shrinks. I would say that's no different than what's been happening for the last 52 weeks, 26 weeks and 13 weeks. And so, if they promote a little bit more, that's usually the higher end. Matthew T. Farrell - Church & Dwight Co., Inc.: Yeah. So, to answer your question, Kevin. As far as July goes yeah. I mean if you talk to Lou and our sales guys, you'll see that things have heated up with some of the other brands, but we always expect the worst. So, I would say that that's in our guidance, we always expect it's going to be tougher in the second half, especially after we took things up in the Q2.

Okay. Very good. Thank you, guys. Good luck.

Thank you. And our next question comes from Stephen Powers with UBS. Your line is open.

Hey, thanks. Just to, I guess press on that a little bit. The laundry couponing obviously you just said it was targeted at new products. But we also saw significant activity around the core ARM & HAMMER brand. In the whole category it looks like volumes accelerated led by your brands. And I guess out of that a few questions. So just – I just want a little bit more color on why be so aggressive, so broadly aggressive at a time when everyone's kind of on pins and needles with respect to this category in particular with the Henkel change and what P&G is doing and it just – it feels like the risk of provoking a continued cycle of retaliation is especially high, so just some color there? And then your confidence that the trial you've generated will translate to repeat once the couponing subsides? And lastly, just your sense of the pantry inventory you may have created, just because again it feels like the volumes sold this past quarter likely outpaced consumption by a fair degree? Richard A. Dierker - Church & Dwight Co., Inc.: Yeah, okay. So, I've got three questions here. I'll take the first one. Really, it's all relative to your perspective, Steve. I mean for us, we aren't outspending the competition, and I'll give you a couple of facts. For the quarter, our amount sold on deal for laundry detergent was 36%. On average the category was 35%. For couponing, this is more of a limited measurement, but our data says we're around 30% and the category is around 27%, 28%. So, maybe we're a basis point two or higher. For a long time, we've kind of held back, but I think we are not making the situation worse, we're just getting up…

Okay. Fair enough, fair enough. And I if I could just squeeze in one question unrelated just on the new subsidiary in Germany, just some color there. It's obviously a large market, but it's also historically been pretty tough at least a tough one in which to make some money. So, just your approach to targeting Germany? Matthew T. Farrell - Church & Dwight Co., Inc.: Well. Look the – we have a subsidiary in the UK and one in France. So we have – and then and that's it in Europe. And all the other countries we served through distributors historically. Germany was unique in our minds because it is the largest economy in Europe and strongest economy in Europe in a well. And so we felt that's a place that we should be. So, that was the logic behind it. And obviously, we do have sales into Germany today through distributors, so, we have a base of sales in Germany. So, we are not going in with a donut. But we do think that that our brands are going to resonate there, and we're going to be able to generate some sales growth there.

Okay. Thank you very much. Matthew T. Farrell - Church & Dwight Co., Inc.: Okay.

Thank you. And our next question comes from Lauren Lieberman from Barclays. Your line is open.

Thanks. Good morning. Matthew T. Farrell - Church & Dwight Co., Inc.: Hey Lauren.

Hey. First of all, could you talk a little bit – you mentioned specific of the e-commerce growth in the release, but talk a little bit about e-commerce what you're kind of doing proactively strategically to do that. Primary retailers where you're sourcing that growth, and then also same kind of conversation around club and the performance there? Matthew T. Farrell - Church & Dwight Co., Inc.: Yeah. We're working with all of our retailers on their dot com sales. So we have – we took somebody, one of our more senior people in the company and dedicated her to working with all of our retailers to drive their online sales. And obviously, we have a structure behind her as well. Amazon is the big dog, I'm sure that's true for virtually every CPG company. So we continue to grow with them, but Wal-Mart you probably know this more recently started in-store pickup or experimenting with in-store pickup, online ordering and in-store pickup on the East Coast. So it's kind of a wait and see to see how that's going. They're naturally integrating Wal-Mart and Jet.com right now. So we'll be working closely with them, but all the retailers have an interest in getting our products online on their dot coms. So we've been working with them to set up the pages.

Okay. And then, I know, Rick you shared that, you said about a third of that 6% price promotion drag on consumer domestic was related to trial and couponing if I heard you correctly. But that's still – I mean 400 basis points is still a big number, right. And it does sound like, I mean last quarter, you were very clear around the promotional environment, you gave a little tweak to the outlook for Q2 and in general to account for that. But it does feel like something picked up intra-quarter on that front. So can you just talk – just address that. I mean, was it reactionary? Was it pressure from you? We know that there is incredible price pressure among – competition between and among retailers. But it does feel like it's worse. If you can talk a little – address that and why that – anything I've said is incorrect? Richard A. Dierker - Church & Dwight Co., Inc.: Yeah. It's probably two things, one is just mix. As Matt said, some of the personal care items are down. So it just looks like the negative drag on price mix because some of our household businesses have higher trade rates. So I think that's part of it. I think and the other part, it's probably some of these trial activities are very enticing for the consumer. And so, when that happens, the volume goes up, but also price – the negative price mix goes up right along with it. So, that's kind of what happened I think in both cases.

Thanks.

Thank you. And our next question comes from Bill Chappell of SunTrust. Your line is open.

Thanks. Good morning. Matthew T. Farrell - Church & Dwight Co., Inc.: Hey, Bill.

Hey, just switching to cat litter, I mean certainly fine performance of – good performance in the first half. I guess one is, is cat litter a growth category, I mean I don't currently own a cat, but I know plenty of people do, but I mean the whole category is growing 3.5% its outperforming most CPG categories out there. So, I mean is that something that's sustainable, is everybody kind of playing well in the – I'm not going to go there, playing well in the sandbox. Or do you think you should see more competitive pressure there as we look to the back half? Matthew T. Farrell - Church & Dwight Co., Inc.: No. In fact, if you go back, Bill and look at the last few years of 2014, 2015, and 2016, the clumping cat litter category actually grew faster than 3.4%. So, that has been a perennial grower for a number of years. So, we don't expect that to change. Pets are the new, they're like children. People are happy to invest in them and innovation and price has driven a lot of that growth over time.

But you're not seeing Nestle or Clorox get, trying to win, I mean last year it was much more competitive. It seems like it's eased per se this year? Matthew T. Farrell - Church & Dwight Co., Inc.: Yeah. No. In fact, the amount sold on deal was 21%, it was 22% in the first quarter. So, it's pretty level.

Okay. And then on the vitamins side, this is the first time I've really – I think, really heard you say that there has been more discounting more BOGOs. I mean it's been more of the category has had its ups and downs, but now it sounds like everybody is jumping into the gummy side. Is that something that you just kind of step back and let it play out, or I mean is there anything you can do to really push your brands and kind of differentiate yourself? I mean how should I look at that especially as we move into not only the back half of the year, but into 2018? Matthew T. Farrell - Church & Dwight Co., Inc.: Yeah. So we've been on the side lines with respect to the buy one, get ones. So what, our focus is on the brand equity. So it is a sea of brands, there are 30 gummy vitamin brands with all the gummy vitamin brands. So the game really long-term is they're not all sustainable. And so over time what will happen is the retailers will pull those back. So the long game is to win with the brand equities that connect with consumers. So you'll be seeing us being very focused on differentiating our brand versus the other brands. And of course I won't tell you how we're going to do that.

And just a quick – I thought you were rolling out a lot of new, a lot more SKUs there. Did that have the impact on growth that you were expecting or is it, the overall category slow down is offsetting that? Matthew T. Farrell - Church & Dwight Co., Inc.: No, no, no. The gummy category is growing. So we're going sideways because we haven't been engaging in the BOGOs and competitors have been doing the BOGOs and we have not. I mean it's as simple as that.

Okay. Matthew T. Farrell - Church & Dwight Co., Inc.: The new products are doing well. So we have Simply Good, this is one of our new products we've got an energy gummy vitamin, but that's not enough to offset the BOGOs. So we've lost some sales to other brands.

Got it. Matthew T. Farrell - Church & Dwight Co., Inc.: But it's not something you want – you don't want to follow that one down the hole. You got to take the long view on it.

I understand. Thanks so much. Matthew T. Farrell - Church & Dwight Co., Inc.: Okay.

Thank you. And our next question comes from Joe Altobello with Raymond James. Your line is open. Joseph Nicholas Altobello - Raymond James & Associates, Inc.: Hey, guys. Good morning. Matthew T. Farrell - Church & Dwight Co., Inc.: Hey, Joe. Joseph Nicholas Altobello - Raymond James & Associates, Inc.: So, first question just want to go back to your outlook for category growth for this year, I guess early in the year was plus 2%, and first half you mentioned it's been plus 1.5%. That 50 basis points delta, that's all price or is there any volume slow down that you're seeing in some of those categories in the U.S.? Matthew T. Farrell - Church & Dwight Co., Inc.: Well, look, I'd say it's both, I wouldn't say it's all one or the other. I mentioned there were five categories that were in personal care that are down between 2% and 5% in the second quarter. And I don't have any stats for you for the full year, but that is one of the drags that we're dealing with there. Joseph Nicholas Altobello - Raymond James & Associates, Inc.: Okay. So, it's a little bit of both. In terms of the gross margin outlook, you're sticking with plus 40 bps this year, that's what you've done in the first half, but it looks like second quarter obviously well below that. How much confidence do you have that the improving mix and things like that will help you in the second half, and how much are you counting on and easing of the promotion environment to help drive that second half? Matthew T. Farrell - Church & Dwight Co., Inc.: Yeah. I think we're very confident in the gross margin outlook, Joe, I mean part of it is like I said before the comps right for example in the first half our vitamin business was up 5% in 2016. And our second half was flat, right. And so we did a lot to win back the consumer in the first half of 2016, and that's what we're comping over this year. So, we expect to have some good tailwinds on the personal care side in the back half, and we also have some good productivity projects in the pipeline. So, we feel really good about our Q4 number and our full year number for gross margin. Joseph Nicholas Altobello - Raymond James & Associates, Inc.: Okay. And just one last one, the timing of the closure of Water Pik, any guess as to late in the quarter? Matthew T. Farrell - Church & Dwight Co., Inc.: It'll probably be sometime in this month. Joseph Nicholas Altobello - Raymond James & Associates, Inc.: Okay, great. Thank you, guys.

Thank you. And our next question comes from Jason English from Goldman Sachs. Your line is open. Jason English - Goldman Sachs & Co.: Hey. Good morning, folks. Richard A. Dierker - Church & Dwight Co., Inc.: Hey, Jason. Matthew T. Farrell - Church & Dwight Co., Inc.: Hey, Jason. Jason English - Goldman Sachs & Co.: Thank you for sliding me in. I suppose I want to take up on the gross margin line of questioning. Certainly, some of the algorithm for ongoing evergreen gross margin expansion for you guys has been predicated on healthy business mix shifts. What I'm hearing you describe today is a more challenging environment for the personal care sleeve of your portfolio, condoms lower, pregnancy test kits lower, vitamin category fragmented becoming more competitive, and obviously it's kind of played out in results with personal care lagging. Meanwhile, the household side really, really aggressive. How do we think about the enablers of margin on a go-forward and also while we're at it maybe you can give us a few of the puts and takes that contribute to margin this quarter? Richard A. Dierker - Church & Dwight Co., Inc.: Yeah, sure. I'll start with that one and then go into the, kind of the outlook again, but in my script I said we had a drag of about 180 basis points on promotional spending, with negative price mix, mainly negative price. We had a 30 basis point drag from commodities, plus 60 basis point on productivity and then we had around 80 basis points of help from acquisitions and divestitures to get to the minus 80 basis points for the quarter. And so we're essentially flat to slightly up for the first half. I think as you look at the second half, there's a…

Thank you. And our next question comes from Andrea Teixeira from JPMorgan. Your line is open.

Is it fair to assume that your guidance for the balance of the year, you're assuming the $0.02 drag from Water Pik in 3Q, but it would reverse again in the fourth quarter because you had said before that it would be flat or neutral for fiscal year 2017 – I am sorry for fiscal year, yeah so for this fiscal year 2017 just to make sure that I have the right number here? And then related to that, so then if I take the $0.53 of the fourth quarter, you would still take that, those $0.02 accretion, then you'd imply as to meeting (41:54) rebounding year-on-year on EPS. So, I was wondering, if you can help us bridge that. So, as you're talking before and if I understood it correctly. The 4 percentage points drag in pricing, you said obviously and that's your couponing, that is still kind of a category drag. You're assuming the category drag goes away in the fourth quarter or in other words perhaps people are just going to use their stocks or destocking and then you're going to have a pickup in repurchases after they've tried your product, is that the way we should think about it? Richard A. Dierker - Church & Dwight Co., Inc.: Okay, Andrea. So, there is a couple of questions in there. The first is on Water Pik, you're exactly right. It's flat for the full year. We have a $0.02 drag in Q3, largely because of the transactional and transitional expenses and not a full quarter worth of earnings. And then a plus $0.02 for the fourth quarter and flat for the year. Your second question, so that implies with our Q3 outlook, that implies a 20% growth rate in earnings in Q4. You're exactly right, that's really two things, 20% is around $0.09 and that's really two things. One is that half of it is the shift of marketing that we've been talking about all year long, right we said we're going to move a lot of our Q4 spending into Q2 and Q3 to better line up with our new product launches. That's about half of it. The other half is, as we've mentioned before we have a better organic growth rate in the back half of the year, so and some gross margin improvement. So, those are the two things driving 20% growth. And then the third question you had was a 400 basis point drag in couponing. Now remember a year ago – that's not just couponing by itself, it's also couponing trade spends and plotting and what not. So, it's a little lumpy in 2016 compared to 2017. I'd tell you that we have some promotional spending throughout the balance of the year, but it's not like we're pulling everything back and we hope we're going to continue to do great without spending. Like we said before, we're hitting our levels right at our competition.

Rick, just what I meant the 400 basis points is that out of the 600 basis points that you had as a drag in price mix, 200 bps was related couponing and then the balance would be industry trends or as you guys were mentioning five categories being very negative. So, I was just wondering if you're assuming that the industry embedded in your guidance that the industry stabilize in the fourth quarter, because I understand the couponing that you had in the fourth quarter or the second half of last year was very mild, it was like 35 bps drag. So, I was wondering if, 50 bps drag – I'm sorry. So I'm wondering if it's mostly related to the industry, that you believe it will stabilize or it's probably that right, so if you... Richard A. Dierker - Church & Dwight Co., Inc.: Right. I understand. The biggest driver is actually mix right. We've said in the first half of the year, part of that 400 basis points drag is personal care, right. And so we expect personal care to be better in the second half right. My answer to Lauren was part of the reason we have a negative price mix, when you look at organic growth is because we have more household increase and then personal care declining. And so just as that naturally balances back out that will improve the negative drag on the price mix line too.

Okay. That's fair. Thank you so much, Rick.

Thank you. And our next question comes from Olivia Tong with Bank of America. Your line is open.

Great. Thanks. First, I just want to follow up on an earlier question around pantry inventory. Given all the couponing and the promotion. Do you think that you're just pulling forward demand like has it – in your view, has there been pantry stocking on the part of consumers, because of all the promotional activity. And then as commodity prices continue to move, how do you think that – will that impact levels of competitive promotion going forward? Matthew T. Farrell - Church & Dwight Co., Inc.: Well pantry loading is always a matter of a conjecture, right. We cannot – if you look at the amount of promotion in the quarter, as we said before, it's 36%. The fact that we – it shifted from other retailer stocks. Remember, we were the only manufacturer that grew share in the quarter. So everybody lost share to us, I wouldn't say that there's pantry loading broadly as a result. Richard A. Dierker - Church & Dwight Co., Inc.: And the laundry category is only up around 1% or 1.5%. So it's not like the consumption was sky high.

Got it. And then just in terms of like the track versus untracked growth, it seems to be moving around quite a bit. I mean, last quarter you were well ahead of track. This quarter it went the opposite way. I mean is this just a function of lapping some of the recent gains you've had in the untracked channels and now you're sort of lapping that or has your thoughts on promotion in channels shifted in some way? Richard A. Dierker - Church & Dwight Co., Inc.: No, Olivia, we still have growth in untracked channels, we're not lapping any big gains or anything like that. We still have growth, it's just the biggest driver is between the Nielsen data and even when you add in the untracked stuff is the negative drag from couponing. And there is a little bit of retailer inventory shifts but the primary driver is the gross to net couponing stuff.

Great. Thank you.

Thank you. And our next question comes from Bonnie Herzog with Wells Fargo. Your line is open.

Thank you. Good morning. Matthew T. Farrell - Church & Dwight Co., Inc.: Good morning.

So, there has been a lot of questions on your promotional spending in the quarter. But I guess – I just wanted to circle back on something. I was hoping you guys could compare the magnitude of your incremental couponing and promotional investments in your tracked maybe versus non-tracked channels. I guess, I'm trying to get a sense of how much you're driving growth in non-tracked or maybe online, via promos or is that just, that growth really just coming from the long-term structural shifts we've been seeing out of the brick and mortar channels? Matthew T. Farrell - Church & Dwight Co., Inc.: Yeah. It's a simple answer, it's primarily bricks and mortar. So, it's just – don't think of it as – that it's online promotions.

Okay. And then another question on BATISTE, it continues to have great momentum. So, I guess I'm wondering what you guys think the real opportunity is for this brand. And then what the opportunities are to leverage the brand further into other adjacent categories. And essentially how quickly could you guys execute on this, I mean. And then finally I guess I'm curious, if you think there is any risk that your momentum in dry shampoo could fade over time due to some of the momentum from the hair care, heritage brands, as the category grows in the U.S.? Matthew T. Farrell - Church & Dwight Co., Inc.: Actually, the simple way to think about the opportunity for dry shampoo for us is – this originated in the UK and in the UK the value of the category is $60 million, and they have a little over 60 million people in the UK. In the U.S., with 335 million people, the category size is only $130 million right now. Now it's growing rapidly, I think it grew 30% in the second quarter. So, it's growing like a rocket but ship but it has a long it with ago. The category size could double over the next few years. And we would enjoy a tremendous amount of growth as a result of that, because we have the number one share and we're in the low-30%'s.

And then what about the opportunity to further leverage the brand? What are your thoughts there? Matthew T. Farrell - Church & Dwight Co., Inc.: Yeah. That's always an opportunity to go in adjacencies, because the BATISTE brand is so strong, particularly with young users, but we wouldn't telegraph what we might be thinking about doing there.

Okay. Understood. Thank you. Matthew T. Farrell - Church & Dwight Co., Inc.: Okay. Thank you. Is that it? Matthew T. Farrell - Church & Dwight Co., Inc.: Okay. I guess we're done. Thanks for joining us today. And we'll talk to you at end of the third quarter.

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program. You may all disconnect. Everyone, have a great day.