XML 26 R16.htm IDEA: XBRL DOCUMENT
v3.21.1

RESTRUCTURING AND OTHER COSTS | 3 Months Ended
--- | ---
Mar. 31, 2021
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND OTHER COSTS | RESTRUCTURING AND OTHER COSTS During the three months ended March 31, 2021, the Company recorded net restructuring and other costs of $1 million which consists of $3 million in severance and other restructuring related costs offset by $2 million in adjustments to inventory reserves. During the three months ended March 31, 2020, the Company recorded restructuring and other costs of $42 million which consists of asset impairments of $39 million and severance costs of $3 million. The details of total restructuring and other costs for the three months ended March 31 were as follows:
Affected Line Item in the Consolidated Statements of Operations |  |  |  | Three Months Ended |
(in millions) |  |  |  |  |  | 2021 |  | 2020 |
Cost of products sold |  |  |  |  |  | $ | (2) |  |  | $ | — |  |
Selling, general, and administrative expenses |  |  |  |  |  | — |  |  | (1) |  |
Restructuring and other costs |  |  |  |  |  | 3 |  |  | 43 |  |
Total restructuring and other costs |  |  |  |  |  | $ | 1 |  |  | $ | 42 |  |
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 $60 million to $70 million for inventory write-downs, severance costs, fixed asset write-offs, and other facility closure costs. The Company recorded total expenses of approximately $57 million related to these actions which consists primarily of inventory write-downs of approximately $29 million, accelerated depreciation of approximately $14 million, and severance costs of approximately $9 million. For the three months ended March 31, 2021, the Company made a $2 million adjustment related to inventory reserves. The Company expects most of the remaining restructuring charges will be recorded during the second quarter of 2021. The Company’s restructuring accruals at March 31, 2021 were as follows:
|  | Severance
(in millions) |  | 2019 and Prior Plans |  | 2020 Plans |  | 2021 Plans |  | Total
Balance at December 31, 2020 |  | $ | 12 |  |  | $ | 17 |  |  | $ | — |  |  | $ | 29 |
Provisions |  | 1 |  |  | — |  |  | 2 |  |  | 3 |
Amounts applied |  | (7) |  |  | (7) |  |  | — |  |  | (14) |
Change in estimates |  | — |  |  | (1) |  |  | — |  |  | (1) |
Balance at March 31, 2021 |  | $ | 6 |  |  | $ | 9 |  |  | $ | 2 |  |  | $ | 17 |
|  | Other Restructuring Costs
(in millions) |  | 2019 and Prior Plans |  | 2020 Plans |  | 2021 Plans |  | Total
Balance at December 31, 2020 |  | $ | 3 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 5 |
Provisions |  | 1 |  |  | — |  |  | — |  |  | 1 |
Amounts applied |  | (1) |  |  | (1) |  |  | — |  |  | (2) |
Balance at March 31, 2021 |  | $ | 3 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 4 |
The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows:
(in millions) |  | December 31, 2020 |  | Provisions |  | Amounts Applied |  | Change in Estimates |  | March 31, 2021
Technologies & Equipment |  | $ | 16 |  |  | $ | — |  |  | $ | (8) |  |  | $ | (1) |  |  | $ | 7 |
Consumables |  | 17 |  |  | 3 |  |  | (7) |  |  |  |  | 13 |
All Other |  | 1 |  |  | 1 |  |  | (1) |  |  | — |  |  | 1 |
Total |  | $ | 34 |  |  | $ | 4 |  |  | $ | (16) |  |  | $ | (1) |  |  | $ | 21 |
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