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RESTRUCTURING AND OTHER COSTS | 12 Months Ended
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Dec. 31, 2020
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND OTHER COSTS | RESTRUCTURING AND OTHER COSTS During the year ended December 31, 2020, the Company recorded restructuring and other costs of $123 million which consists primarily of inventory write-downs of $31 million, accelerated depreciation of $14 million, severance costs of $23 million, indefinite-lived intangible asset impairment of $39 million, and other impairments of $8 million. During the year ended December 31, 2019, the Company recorded restructuring and other costs of $128 million, which consists primarily of inventory write-downs of $20 million, accelerated depreciation of $3 million, severance costs of $37 million, fixed asset impairments of $33 million, and $9 million related to impairments of both definite-lived and indefinite-lived intangible assets. During the year ended December 31, 2018, the Company recorded restructuring and other costs of $262 million which consists primarily of inventory write-downs of $13 million, accelerated depreciation of $11 million, severance costs of $25 million, and indefinite-lived intangible asset impairment charges of $179 million. The details of total restructuring and other costs for the years ended 2020, 2019 and 2018 were as follows:
Affected Line Item in the Consolidated Statements of Operations |  | Year Ended December 31,
(in millions) |  | 2020 |  | 2019 |  | 2018
Cost of products sold |  | $ | 44 |  |  | $ | 25 |  |  | $ | 21 |
Selling, general, and administrative expenses |  | 2 |  |  | 23 |  |  | 15 |
Restructuring and other costs |  | 77 |  |  | 81 |  |  | 226 |
Other income and expenses |  | — |  |  | (1) |  |  | — |
Total restructuring and other costs |  | $ | 123 |  |  | $ | 128 |  |  | $ | 262 |
In November 2018, the Board of Directors of the Company approved a plan to restructure the Company’s business to support revenue growth and margin expansion and to simplify the organization. In July 2020, the Board of Directors of the Company approved an expansion of this plan that further optimizes the Company’s product portfolio and reduces operating expenses. The Company had initially anticipated one-time expenditures and charges of approximately $275 million. The program expansion is expected to result in total charges of approximately $375 million. There can be no assurance that the cost reductions and results will be achieved. 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 year ended December 31, 2020, the Company recorded expenses of approximately $59 million related to these actions which consists primarily of inventory write-downs of approximately $31 million, accelerated depreciation of approximately $14 million, and severance costs of approximately $9 million. These expenses are included in the above table. The Company's restructuring accruals at December 31, 2020 were as follows:
|  | Severance
(in millions) |  | 2018 and Prior Plans |  | 2019 Plans |  | 2020 Plans |  | Total
Balance at December 31, 2019 |  | $ | 7 |  |  | $ | 20 |  |  | $ | — |  |  | $ | 27 |
Provisions and adjustments |  | 2 |  |  | 2 |  |  | 28 |  |  | 32 |
Amounts applied |  | (4) |  |  | (8) |  |  | (9) |  |  | (21) |
Change in estimates |  | — |  |  | (7) |  |  | (2) |  |  | (9) |
Balance at December 31, 2020 |  | $ | 5 |  |  | $ | 7 |  |  | $ | 17 |  |  | $ | 29 |
|  | Other Restructuring Costs
(in millions) |  | 2018 and Prior Plans |  | 2019 Plans |  | 2020 Plans |  | Total
Balance at December 31, 2019 |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 3 |
Provisions and adjustments |  | — |  |  | 1 |  |  | 3 |  |  | 4 |
Amounts applied |  | — |  |  | (1) |  |  | (1) |  |  | (2) |
Balance at December 31, 2020 |  | $ | 3 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 5 |
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 and Adjustments |  | Amounts Applied |  | Change in Estimates |  | December 31, 2020
Technologies & Equipment |  | $ | 19 |  |  | $ | 16 |  |  | $ | (12) |  |  | $ | (7) |  |  | $ | 16 |
Consumables |  | 11 |  |  | 16 |  |  | (8) |  |  | (2) |  |  | 17 |
All Other |  | — |  |  | 4 |  |  | (3) |  |  | — |  |  | 1 |
Total |  | $ | 30 |  |  | $ | 36 |  |  | $ | (23) |  |  | $ | (9) |  |  | $ | 34 |
The Company's restructuring accruals at December 31, 2019 were as follows:
|  | Severances
(in millions) |  | 2017 and Prior Plans |  | 2018 Plans |  | 2019 Plans |  | Total
Balance at December 31, 2018 |  | $ | 27 |  |  | $ | 16 |  |  | $ | — |  |  | $ | 43 |
Provisions and adjustments |  | 4 |  |  | 1 |  |  | 31 |  |  | 36 |
Amounts applied |  | (22) |  |  | (12) |  |  | (9) |  |  | (43) |
Change in estimates |  | (7) |  |  | — |  |  | (2) |  |  | (9) |
Balance at December 31, 2019 |  | $ | 2 |  |  | $ | 5 |  |  | $ | 20 |  |  | $ | 27 |
|  | Other Restructuring Costs
(in millions) |  | 2017 and Prior Plans |  | 2018 Plans |  | 2019 Plans |  | Total
Balance at December 31, 2018 |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 3 |
Provisions and adjustments |  | 2 |  |  | 1 |  |  | 3 |  |  | 6 |
Amounts applied |  | (2) |  |  | (1) |  |  | (3) |  |  | (6) |
Balance at December 31, 2019 |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 3 |
The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows:
(in millions) |  | December 31, 2018 |  | Provisions and Adjustments |  | Amounts Applied |  | Change in Estimates |  | December 31, 2019
Technologies & Equipment (a) |  | $ | 33 |  |  | $ | 24 |  |  | $ | (33) |  |  | $ | (5) |  |  | $ | 19 |
Consumables (a) |  | 13 |  |  | 17 |  |  | (15) |  |  | (4) |  |  | 11 |
All Other |  | — |  |  | 1 |  |  | (1) |  |  | — |  |  | — |
Total |  | $ | 46 |  |  | $ | 42 |  |  | $ | (49) |  |  | $ | (9) |  |  | $ | 30 |

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- 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
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