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RESTRUCTURING AND OTHER COSTS | 6 Months Ended
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Jun. 30, 2025
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND OTHER COSTS | RESTRUCTURING AND OTHER COSTS Restructuring and other costs were recorded in the Consolidated Statements of Operations as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Cost of products sold |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |
Selling, general, and administrative expenses |  | — |  |  | 1 |  |  | 1 |  |  | 4 |
Restructuring and other costs |  | 4 |  |  | 21 |  |  | 13 |  |  | 22 |
Total restructuring and other costs |  | $ | 4 |  |  | $ | 23 |  |  | $ | 14 |  |  | $ | 27 |
Restructuring and other costs of $13 million recorded in the first six months of 2025 consisted primarily of employee severance benefits and other restructuring costs for various restructuring actions, including the continuation of the global supply chain transformation initiatives from prior years, and for the plan approved by the Board of Directors of the Company on July 29, 2024 (the “2024 Plan”). With the 2024 Plan, the Company seeks to improve operational performance and drive stockholder value creation. 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 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. As of June 30, 2025, the Company has incurred $30 million in restructuring charges under the 2024 Plan since its inception, primarily related to employee transition, severance payments and employee benefits, which are expected to be paid by the end of 2025. Remaining restructuring charges attributable to the 2024 Plan are not expected to be material. With the restructuring plan approved by the Board of Directors of the Company on February 14, 2023 (the “2023 Plan”), the Company sought 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, with the benefits mostly offset in the short term by additional investments in sales personnel, the Company’s new global Enterprise Resource Planning (“ERP”) system, and other transformation initiatives. As of June 30, 2025, the Company has incurred $86 million in restructuring charges under the 2023 Plan since its inception, 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. 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, 2025 was as follows:
|  |  |  | Severance
(in millions) |  |  |  | 2023 and Prior Plans |  | 2024 Plans |  | Other Actions |  | Total
Balance at December 31, 2024 |  |  |  | $ | 13 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 32 |
Provisions |  |  |  | 1 |  |  | 2 |  |  | 9 |  |  | 12 |
Amounts applied |  |  |  | (10) |  |  | (16) |  |  | (1) |  |  | (27) |
Change in estimates |  |  |  | (2) |  |  | — |  |  | — |  |  | (2) |
Balance at June 30, 2025 |  |  |  | $ | 2 |  |  | $ | 5 |  |  | $ | 8 |  |  | $ | 15 |
|  | Other Restructuring Costs
(in millions) |  | 2023 and Prior Plans |  | 2024 Plans |  | Other Actions |  | Total
Balance at December 31, 2024 |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Provisions |  | 1 |  |  | — |  |  | — |  |  | 1 |
Amounts applied |  | (1) |  |  | — |  |  | — |  |  | (1) |
Balance at June 30, 2025 |  | $ | 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, 2024 |  | Provisions |  | Amounts Applied |  | Change in Estimates |  | June 30, 2025
Connected Technology Solutions |  | $ | 9 |  |  | $ | 3 |  |  | $ | (9) |  |  | $ | (2) |  |  | $ | 1 |
Essential Dental Solutions |  | 11 |  |  | — |  |  | (6) |  |  | — |  |  | 5 |
Orthodontic and Implant Solutions |  | 9 |  |  | 2 |  |  | (4) |  |  | — |  |  | 7 |
Wellspect Healthcare |  | 3 |  |  | 1 |  |  | (2) |  |  | — |  |  | 2 |
All Other |  | 1 |  |  | 7 |  |  | (7) |  |  | — |  |  | 1 |
Total |  | $ | 33 |  |  | $ | 13 |  |  | $ | (28) |  |  | $ | (2) |  |  | $ | 16 |

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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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