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RESTRUCTURING AND OTHER COSTS | 3 Months Ended
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Mar. 31, 2024
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND OTHER COSTS | RESTRUCTURING AND OTHER COSTS Restructuring and other costs for the three months ended March 31, 2024 and 2023 were recorded in the Consolidated Statements of Operations as follows:
Affected Line Item |  |  |  | Three Months Ended
(in millions) |  |  |  |  |  | 2024 |  | 2023
Cost of products sold |  |  |  |  |  | $ | — |  |  | $ | 4 |
Selling, general, and administrative expenses |  |  |  |  |  | 3 |  |  | — |
Restructuring and other costs |  |  |  |  |  | 1 |  |  | 59 |
Total restructuring and other costs |  |  |  |  |  | $ | 4 |  |  | $ | 63 |
Restructuring and other costs of $1 million recorded in the first three months of 2024 consisted primarily of employee severance benefits and other restructuring costs related to the plan approved by the Board of Directors of the Company on February 14, 2023. This plan seeks to restructure the Company’s business to improve operational performance and drive shareholder value creation through a new operating model with four operating segments, optimization of central functions and overall management infrastructure, and other efforts aimed at cost savings. The restructuring plan anticipates a reduction in the Company’s global workforce of approximately 8% to 10%, subject to co-determination processes with employee representative groups in countries where required, which processes are now substantially complete. The Company expects to incur between $115 million and $135 million in one-time charges, comprising $80 million to $100 million in restructuring expenditures and charges, primarily related to employee transition, severance payments, employee benefits and facility closure costs, and $35 million in other non-recurring costs which mostly consist of consulting, legal and other professional service fees. The plan is expected to be substantially completed in 2024. The estimates of these charges and their timing are subject to several assumptions, including local law requirements in various jurisdictions and co-determination aspects in countries where required. Actual amounts may differ materially from estimates. In addition, the Company may incur other charges or cash expenditures in connection with this plan which are not currently contemplated. The liabilities associated with the Company's restructuring plans are recorded in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. Activity in the Company’s restructuring accruals at March 31, 2024 was as follows:
|  |  |  | Severance
(in millions) |  |  |  | 2022 and Prior Plans |  | 2023 Plan |  | Total
Balance at December 31, 2023 |  |  |  | $ | 2 |  |  | $ | 37 |  |  | $ | 39 |
Provisions |  |  |  | 1 |  |  | 2 |  |  | 3 |
Amounts applied |  |  |  | — |  |  | (11) |  |  | (11) |
Change in estimates |  |  |  | — |  |  | (2) |  |  | (2) |
Balance at March 31, 2024 |  |  |  | $ | 3 |  |  | $ | 26 |  |  | $ | 29 |
|  |  |  | Other Restructuring Costs
(in millions) |  |  |  | 2022 and Prior Plans |  | 2023 Plan |  | Total
Balance at December 31, 2023 |  |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
Provisions |  |  |  | — |  |  | 1 |  |  | 1 |
Amounts applied |  |  |  | — |  |  | (1) |  |  | (1) |
Balance at March 31, 2024 |  |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows:
(in millions) |  | December 31, 2023 |  | Provisions |  | Amounts Applied |  | Change in Estimates |  | March 31, 2024
Connected Technology Solutions |  | $ | 13 |  |  | $ | 1 |  |  | $ | (7) |  |  | $ | (2) |  |  | $ | 5 |
Essential Dental Solutions |  | 17 |  |  | 1 |  |  | (2) |  |  | — |  |  | 16 |
Orthodontic and Implant Solutions |  | 9 |  |  | — |  |  | (2) |  |  | — |  |  | 7 |
Wellspect Healthcare |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
All Other |  | — |  |  | 2 |  |  | (1) |  |  | — |  |  | 1 |
Total |  | $ | 40 |  |  | $ | 4 |  |  | $ | (12) |  |  | $ | (2) |  |  | $ | 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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