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RESTRUCTURING AND OTHER COSTS | 6 Months Ended
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Jun. 30, 2024
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND OTHER COSTS | RESTRUCTURING AND OTHER COSTS Restructuring and other costs for the three and six months ended June 30, 2024 and 2023 were recorded in the Consolidated Statements of Operations as follows:
Affected Line Item |  | Three Months Ended |  | Six Months Ended
(in millions) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Cost of products sold |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 4 |
Selling, general, and administrative expenses |  | 1 |  |  | 1 |  |  | 4 |  |  | 1 |
Restructuring and other costs |  | 21 |  |  | 5 |  |  | 22 |  |  | 64 |
Total restructuring and other costs |  | $ | 23 |  |  | $ | 6 |  |  | $ | 27 |  |  | $ | 69 |
Restructuring and other costs of $22 million recorded in the first six 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 (the “2023 Plan”). The 2023 Plan seeks to restructure the business through a new operating model with five global business units, optimize central functions and overall management infrastructure, and implement other efforts aimed at cost savings. The 2023 Plan’s annual cost savings target of $200 million has been substantially met as of June 30, 2024, with the benefits mostly offset in the short term by additional investments in sales personnel, our new global ERP system, and other transformation initiatives. As of June 30, 2024, the Company has incurred $86 million in restructuring charges since the inception of the 2023 Plan, primarily related to employee transition, severance payments, employee benefits, and facility closure costs, and $20 million in other non-recurring costs related to restructuring activities which mostly consist of consulting, legal, and other professional service fees. Remaining restructuring charges attributable to the 2023 Plan are not expected to be material. On July 29, 2024 the Board of Directors of the Company approved an additional plan to restructure the Company’s business to improve operational performance and drive shareholder value creation (the “2024 Plan”). In connection with the 2024 Plan, which is expected to be substantially completed by the end of 2025, the Company anticipates a net reduction in the Company’s global workforce of approximately 2% to 4%. The proposed changes are subject to co-determination processes with employee representative groups in countries where required. Actions taken under the 2024 Plan will seek to further streamline the Company’s operations and global footprint, as well as improve alignment of the Company’s cost structure with its strategic growth objectives. The Company expects to incur between $40 million and $50 million in non-recurring restructuring charges under the 2024 Plan, primarily related to employee transition, severance payments and employee benefits, which are expected to be expensed and paid in cash in 2024 and 2025. The estimates of the charges and expenditures that the Company expects to incur in connection with the 2024 Plan, and the timing thereof, 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 additional charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the 2024 Plan. 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 June 30, 2024 was as follows:
|  |  |  | Severance
(in millions) |  |  |  | 2022 and Prior Plans |  | 2023 Plans |  |  |  | Total
Balance at December 31, 2023 |  |  |  | $ | 2 |  |  | $ | 37 |  |  |  |  | $ | 39 |
Provisions |  |  |  | — |  |  | 22 |  |  |  |  | 22 |
Amounts applied |  |  |  | — |  |  | (23) |  |  |  |  | (23) |
Change in estimates |  |  |  | — |  |  | (3) |  |  |  |  | (3) |
Balance at June 30, 2024 |  |  |  | $ | 2 |  |  | $ | 33 |  |  |  |  | $ | 35 |
|  | Other Restructuring Costs
(in millions) |  | 2022 and Prior Plans |  | 2023 Plans |  |  |  | Total
Balance at December 31, 2023 |  | $ | 1 |  |  | $ | — |  |  |  |  | $ | 1 |
Provisions |  | — |  |  | 2 |  |  |  |  | 2 |
Amounts applied |  | — |  |  | (1) |  |  |  |  | (1) |
Change in estimates |  | — |  |  | — |  |  |  |  | — |
Balance at June 30, 2024 |  | $ | 1 |  |  | $ | 1 |  |  |  |  | $ | 2 |
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 |  | June 30, 2024
Connected Technology Solutions |  | $ | 13 |  |  | $ | 11 |  |  | $ | (13) |  |  | $ | (3) |  |  | $ | 8 |
Essential Dental Solutions |  | 17 |  |  | 5 |  |  | (4) |  |  | — |  |  | 18 |
Orthodontic and Implant Solutions |  | 9 |  |  | 6 |  |  | (5) |  |  | — |  |  | 10 |
Wellspect Healthcare |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 2 |
All Other |  | — |  |  | 1 |  |  | (2) |  |  | — |  |  | (1) |
Total |  | $ | 40 |  |  | $ | 24 |  |  | $ | (24) |  |  | $ | (3) |  |  | $ | 37 |

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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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