XML 28 R15.htm IDEA: XBRL DOCUMENT
v3.20.2

RESTRUCTURING AND OTHER COSTS | 9 Months Ended
--- | ---
Sep. 30, 2020
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND OTHER COSTS | RESTRUCTURING AND OTHER COSTS During the three and nine months ended September 30, 2020, the Company recorded restructuring costs of $52.3 million and $95.5 million, respectively, which consists primarily of inventory write-downs of $24.5 million and $24.6 million, respectively, accelerated depreciation of $8.4 million and $9.1 million, respectively, severance costs of $15.7 million and $20.6 million, respectively, and asset impairments of $2.2 million and $41.0 million, respectively. During the three and nine months ended September 30, 2019, the Company recorded restructuring costs of $7.3 million and $117.7 million, respectively, which consists primarily of inventory write-downs of $2.5 million and $19.5 million, respectively, severance income of $1.9 million and expense of $29.3 million, respectively, and asset impairments of $3.8 million and $41.8 million, respectively. The details of total restructuring costs for the three and nine months ended September 30 were as follows:
Affected Line Item in the Consolidated Statements of Operations |  | Three Months Ended |  | Nine Months Ended |
(in millions) |  | 2020 |  | 2019 |  | 2020 |  | 2019 |
Cost of products sold |  | $ | 32.3 |  |  | $ | 3.6 |  |  | $ | 32.7 |  |  | $ | 24.3 |  |
Selling, general, and administrative expenses |  | 1.3 |  |  | (1.1) |  |  | 0.6 |  |  | 20.3 |  |
Restructuring and other costs |  | 18.7 |  |  | 5.2 |  |  | 62.5 |  |  | 68.1 |  |
Other income and expenses |  | — |  |  | (0.4) |  |  | (0.3) |  |  | 5.0 |  |
Total restructuring costs |  | $ | 52.3 |  |  | $ | 7.3 |  |  | $ | 95.5 |  |  | $ | 117.7 |  |
The Company announced on August 6, 2020 that it will exit its traditional orthodontics business as well as both exit and restructure certain portions of its laboratory business. The traditional orthodontics business is part of the Technologies & Equipment segment and the laboratory business is part of the Consumables segment. The Company is exiting several of its facilities and reducing its workforce by approximately 4% to 5%. The Company expects to record restructuring charges in a range of $70 million to $80 million for inventory write-downs, severance costs, fixed asset write-offs, and other facility closure costs. During the three months ended September 30, 2020, the Company recorded expenses of approximately $48 million related to these actions which consists primarily of inventory write-downs of approximately $25 million, accelerated depreciation of approximately $8 million, and severance costs of approximately $13 million. These expenses are included in the above table. The Company expects most of the remaining restructuring charges will be recorded during the fourth quarter of 2020. The Company’s restructuring accruals at September 30, 2020 were as follows:
|  | Severance
(in millions) |  | 2018 and Prior Plans |  | 2019 Plans |  | 2020 Plans |  | Total
Balance at December 31, 2019 |  | $ | 7.2 |  |  | $ | 19.8 |  |  | $ | — |  |  | $ | 27.0 |
Provisions |  | 1.1 |  |  | 1.5 |  |  | 19.3 |  |  | 21.9 |
Amounts applied |  | (3.2) |  |  | (7.4) |  |  | (1.8) |  |  | (12.4) |
Change in estimates |  | (0.5) |  |  | (3.6) |  |  | — |  |  | (4.1) |
Balance at September 30, 2020 |  | $ | 4.6 |  |  | $ | 10.3 |  |  | $ | 17.5 |  |  | $ | 32.4 |
|  | Lease/Contract Terminations
(in millions) |  | 2018 and Prior Plans |  |  |  | 2020 Plans |  | Total
Balance at December 31, 2019 |  | $ | 0.5 |  |  |  |  | $ | — |  |  | $ | 0.5 |
Provisions |  | 0.4 |  |  |  |  | 0.3 |  |  | 0.7 |
Amounts applied |  | (0.4) |  |  |  |  | (0.1) |  |  | (0.5) |
Balance at September 30, 2020 |  | $ | 0.5 |  |  |  |  | $ | 0.2 |  |  | $ | 0.7 |
|  | Other Restructuring Costs
(in millions) |  | 2018 and Prior Plans |  | 2019 Plans |  | 2020 Plans |  | Total
Balance at December 31, 2019 |  | $ | 2.2 |  |  | $ | 0.3 |  |  | $ | — |  |  | $ | 2.5 |
Provisions |  | — |  |  | 0.5 |  |  | 0.4 |  |  | 0.9 |
Amounts applied |  | — |  |  | (0.7) |  |  | 0.1 |  |  | (0.6) |
Change in estimate |  | — |  |  | (0.1) |  |  | — |  |  | (0.1) |
Balance at September 30, 2020 |  | $ | 2.2 |  |  | $ | — |  |  | $ | 0.5 |  |  | $ | 2.7 |
The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows:
(in millions) |  | December 31, 2019 |  | Provisions |  | Amounts Applied |  | Change in Estimates |  | September 30, 2020
Technologies & Equipment |  | $ | 19.1 |  |  | $ | 16.3 |  |  | $ | (8.0) |  |  | $ | (4.0) |  |  | $ | 23.4 |
Consumables |  | 11.4 |  |  | 4.5 |  |  | (3.9) |  |  | (0.1) |  |  | 11.9 |
All Other |  | (0.5) |  |  | 2.7 |  |  | (1.6) |  |  | (0.1) |  |  | 0.5 |
Total |  | $ | 30.0 |  |  | $ | 23.5 |  |  | $ | (13.5) |  |  | $ | (4.2) |  |  | $ | 35.8 |
The associated restructuring liabilities are recorded in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
Name: | us-gaap_RestructuringImpairmentAndOtherActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration