Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jul. 01, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39054 | ||
Entity Registrant Name | ENVISTA HOLDINGS CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-2206728 | ||
Entity Address, Address Line One | 200 S. Kraemer Blvd., Building E | ||
Entity Address, City or Town | Brea | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92821-6208 | ||
City Area Code | 714 | ||
Local Phone Number | 817-7000 | ||
Title of 12(b) Security | Common stock, $0.01 par value | ||
Trading Symbol | NVST | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 163,231,502 | ||
Entity Public Float | $ 4.7 | ||
Documents Incorporated by Reference | Part III incorporates certain information by reference from the Registrant’s proxy statement for its 2023 annual meeting of stockholders to be filed pursuant to Regulation 14A within 120 days after Registrant’s fiscal year-end. With the exception of the sections of the 2023 Proxy Statement specifically incorporated herein by reference, the 2023 Proxy Statement is not deemed to be filed as part of this Form 10-K. In this Annual Report, the terms “Envista” or the “Company” refer to Envista Holdings Corporation, Envista Holdings Corporation and its consolidated subsidiaries or the consolidated subsidiaries of Envista Holdings Corporation, as the context requires. *** We own or have rights to trademarks, service marks or trade names that we use in connection with the operation of our business. In addition, our names, logos and website names and addresses are owned by us or licensed by us. We also own or have the rights to copyrights that protect the content of our solutions. Solely for convenience, the trademarks, service marks, trade names and copyrights referred to in this report are listed without the ©, ® and ™ symbols, but we will assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these trademarks, service marks, trade names and copyrights. This report may include trademarks, service marks or trade names of other companies. Our use or display of other parties’ trademarks, service marks, trade names or products is not intended to, and does not imply a relationship with, or endorsement or sponsorship of us by, the trademark, service mark or trade name owners. *** Unless otherwise indicated, information contained in this report concerning our industry and the markets in which we operate is based on information from independent industry and research organizations, other third-party sources (including industry publications, surveys and forecasts), and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and third-party sources, as well as data from our internal research, and are based on assumptions made by us upon reviewing such data and our knowledge of such industry and markets that we believe to be reasonable. Although we believe the data from these third-party sources is reliable, we have not independently verified any third-party information. *** Unless otherwise indicated, all financial data in this Annual Report refer to continuing operations only. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001757073 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Irvine, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 606.9 | $ 1,073.6 |
Trade accounts receivable, less allowance for credit losses of $16.2 and $20.7, respectively | 393.5 | 331.9 |
Inventories, net | 300.8 | 263.8 |
Prepaid expenses and other current assets | 123.4 | 154.3 |
Assets held for sale | 0 | 12.2 |
Total current assets | 1,424.6 | 1,835.8 |
Property, plant and equipment, net | 293.6 | 264.1 |
Operating lease right-of-use assets | 131.8 | 128.1 |
Other long-term assets | 153.7 | 167.8 |
Goodwill | 3,496.6 | 3,132 |
Other intangible assets, net | 1,086.7 | 1,046.4 |
Total assets | 6,587 | 6,574.2 |
Current liabilities: | ||
Short-term debt | 510 | 432.4 |
Trade accounts payable | 228.3 | 185.8 |
Accrued expenses and other liabilities | 471.4 | 562.3 |
Operating lease liabilities | 27 | 23.7 |
Liabilities held for sale | 0 | 4 |
Total current liabilities | 1,236.7 | 1,208.2 |
Operating lease liabilities | 121.4 | 120.4 |
Other long-term liabilities | 151.3 | 304.2 |
Long-term debt | 870.7 | 883.4 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 15.0 million shares authorized; no shares issued or outstanding at December 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock - $0.01 par value, 500.0 million shares authorized; 163.7 million shares issued and 163.2 million shares outstanding at December 31, 2022; 162.0 million shares issued and 161.6 million shares outstanding at December 31, 2021 | 1.6 | 1.6 |
Additional paid-in capital | 3,699 | 3,732.6 |
Retained earnings | 731.4 | 466.9 |
Accumulated other comprehensive loss | (225.1) | (143.5) |
Total Envista stockholders’ equity | 4,206.9 | 4,057.6 |
Noncontrolling interests | 0 | 0.4 |
Total stockholders’ equity | 4,206.9 | 4,058 |
Total liabilities and stockholders’ equity | $ 6,587 | $ 6,574.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 16.2 | $ 20.7 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred shares issued (in shares) | 0 | 0 |
Preferred shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 163,700,000 | 162,000,000 |
Common stock, shares outstanding (in shares) | 163,200,000 | 161,600,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | ||||
Sales | $ 2,569.1 | $ 2,508.9 | $ 1,929.1 | |
Cost of sales | 1,094.3 | 1,082.4 | 874.3 | |
Gross profit | 1,474.8 | 1,426.5 | 1,054.8 | |
Operating expenses: | ||||
Selling, general and administrative | 1,055.5 | 1,019.8 | 924.6 | |
Research and development | 100.1 | 100.5 | 86.7 | |
Operating profit | 319.2 | 306.2 | 43.5 | |
Nonoperating income (expense): | ||||
Other income (expense) | 3.1 | 2.4 | (1) | |
Interest expense, net | (38.4) | (54.1) | (62.5) | |
Income (loss) before income taxes | 283.9 | 254.5 | (20) | |
Income tax expense (benefit) | 45.9 | (9) | (62.5) | |
Income from continuing operations, net of tax | 238 | 263.5 | 42.5 | |
Income (loss) from discontinued operations, net of tax (Note 4) | 5.1 | 77 | (9.2) | |
Net income | $ 243.1 | $ 340.5 | $ 33.3 | |
Earnings per share: | ||||
Earnings from continuing operations - basic (in USD per share) | $ 1.46 | $ 1.63 | $ 0.27 | |
Earnings from continuing operations - diluted (in USD per share) | 1.34 | 1.48 | 0.26 | |
Earnings (loss) from discontinued operations - basic (in USD per share) | 0.03 | 0.48 | (0.06) | |
Earnings (loss) from discontinued operations - diluted (in USD per share) | 0.03 | 0.43 | (0.06) | |
Earnings - basic (in USD per share) | 1.49 | 2.11 | 0.21 | |
Earnings - diluted (in USD per share) | [1] | $ 1.37 | $ 1.92 | $ 0.20 |
Average common stock and common equivalent shares outstanding: | ||||
Basic (in shares) | 162.9 | 161.2 | 159.6 | |
Diluted (in shares) | 177.6 | 177.6 | 164.1 | |
[1]* Earnings per share is computed independently for earnings per share from continuing operations and earnings per share from discontinued operations. The sum of earnings per share from continuing operations and earnings per share from discontinued operations does not equal earnings per share due to rounding. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 243.1 | $ 340.5 | $ 33.3 |
Other comprehensive (loss) income, net of income taxes: | |||
Foreign currency translation adjustments | (100.9) | (77.1) | 53.9 |
Cash flow hedge adjustments | 1.7 | 4.6 | (6.4) |
Pension plan adjustments | 17.6 | 20.8 | 4.9 |
Total other comprehensive (loss) income, net of income taxes | (81.6) | (51.7) | 52.4 |
Comprehensive income | $ 161.5 | $ 288.8 | $ 85.7 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Total Envista Equity | Total Envista Equity Adjustment | Total Envista Equity Adjusted balance | Common Stock | Common Stock Adjusted balance | Additional Paid-in Capital | Additional Paid-in Capital Adjustment | Additional Paid-in Capital Adjusted balance | Retained Earnings | Retained Earnings Adjustment | Retained Earnings Adjusted balance | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Adjusted balance | Noncontrolling Interests | Noncontrolling Interests Adjusted balance |
Balance, beginning of period at Dec. 31, 2019 | $ 3,540.2 | $ 1.6 | $ 3,589.7 | $ 93.1 | $ (144.2) | $ 2.6 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock-based award activity | 32.2 | 32.2 | ||||||||||||||
Equity component of convertible senior notes, net of financing costs and taxes | 77.9 | 77.9 | ||||||||||||||
Purchase of capped calls related to issuance of convertible senior notes, net of taxes | (15.7) | (15.7) | ||||||||||||||
Separation related adjustments | 0.3 | 0.3 | ||||||||||||||
Net income | $ 33.3 | 33.3 | 33.3 | |||||||||||||
Other comprehensive income (loss) | 52.4 | 52.4 | 52.4 | |||||||||||||
Change in noncontrolling interest | (2.2) | |||||||||||||||
Balance, end of period at Dec. 31, 2020 | 3,720.6 | 1.6 | 3,684.4 | 126.4 | (91.8) | 0.4 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock-based award activity | 41.4 | 41.4 | ||||||||||||||
Separation related adjustments | 6.8 | 6.8 | ||||||||||||||
Net income | 340.5 | 340.5 | 340.5 | |||||||||||||
Other comprehensive income (loss) | $ (51.7) | (51.7) | (51.7) | |||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 [Member] | |||||||||||||||
Balance, end of period at Dec. 31, 2021 | $ 4,058 | 4,057.6 | $ (56.4) | $ 4,001.2 | 1.6 | $ 1.6 | 3,732.6 | $ (77.8) | $ 3,654.8 | 466.9 | $ 21.4 | $ 488.3 | (143.5) | $ (143.5) | 0.4 | $ 0.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock-based award activity | 44.2 | 44.2 | ||||||||||||||
Net income | 243.1 | 243.1 | 243.1 | |||||||||||||
Other comprehensive income (loss) | (81.6) | (81.6) | (81.6) | |||||||||||||
Change in noncontrolling interest | (0.4) | |||||||||||||||
Balance, end of period at Dec. 31, 2022 | $ 4,206.9 | $ 4,206.9 | $ 1.6 | $ 3,699 | $ 731.4 | $ (225.1) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 243.1 | $ 340.5 | $ 33.3 |
Noncash items: | |||
Depreciation | 31.8 | 40.8 | 42.4 |
Amortization | 106 | 82.8 | 90.2 |
Allowance for credit losses | 4.8 | 5.6 | 23 |
Stock-based compensation expense | 30.5 | 28.2 | 22.6 |
Gain on sale of property, plant and equipment | (1.9) | (2.2) | 0 |
Gain on sale of KaVo treatment unit and instrument business | (8.9) | (11.7) | 0 |
Restructuring charges | 4.7 | 10.8 | 11.1 |
Impairment charges | 6.4 | 18.4 | 32.6 |
Fair value adjustment of acquisition-related inventory | 9.5 | 0 | 0 |
Amortization of right-of-use assets | 24.3 | 28.3 | 30.5 |
Amortization of debt discount and issuance costs | 4.1 | 23.3 | 13.4 |
Change in deferred income taxes | (29) | (59) | (91.4) |
Change in trade accounts receivable | (71) | (43.2) | 71.9 |
Change in inventories | (39.9) | (66) | 11.9 |
Change in trade accounts payable | 44.5 | (20.3) | 21.6 |
Change in prepaid expenses and other assets | (11.7) | (11.5) | (2.5) |
Change in accrued expenses and other liabilities | (133) | 34.3 | 10 |
Change in operating lease liabilities | (31.6) | (37.5) | (36.7) |
Net cash provided by operating activities | 182.7 | 361.6 | 283.9 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (696.2) | (2.1) | (40.7) |
Payments for additions to property, plant and equipment | (75.7) | (54.7) | (47.7) |
Proceeds from sales of property, plant and equipment | 3.3 | 11.6 | 5.3 |
Proceeds from sale of KaVo treatment unit and instrument business, net | 73.9 | 312.5 | 0 |
Proceeds from the settlement of derivative financial instruments | 56 | 11.4 | 14 |
All other investing activities, net | (18.6) | (16) | 0 |
Net cash (used in) provided by investing activities | (657.3) | 262.7 | (69.1) |
Cash flows from financing activities: | |||
Proceeds from revolving line of credit | 124 | 0 | 249.8 |
Repayment of revolving line of credit | (124) | 0 | (250) |
Proceeds from borrowing | 0.3 | 0 | 0 |
Repayment of borrowing | (0.5) | (475.7) | 0 |
Proceeds from issuance of convertible senior notes | 0 | 0 | 517.5 |
Payment of debt issuance and other deferred financing costs | 0 | (2.3) | (17.2) |
Purchase of capped calls related to issuance of convertible senior notes | 0 | 0 | (20.7) |
Proceeds from stock option exercises | 21.8 | 19.5 | 13.8 |
Tax withholding payment related to net settlement of equity awards | (9.1) | (7.2) | (5) |
All other financing activities | 0 | 0.1 | 4.3 |
Net cash provided by (used in) financing activities | 12.5 | (465.6) | 492.5 |
Effect of exchange rate changes on cash and cash equivalents | (4.6) | 26 | (29.6) |
Net change in cash and cash equivalents | (466.7) | 184.7 | 677.7 |
Beginning balance of cash and cash equivalents | 1,073.6 | 888.9 | 211.2 |
Ending balance of cash and cash equivalents | 606.9 | 1,073.6 | 888.9 |
Supplemental data: | |||
Cash paid for interest | 38.4 | 35.7 | 56.7 |
Cash paid for taxes | 119.2 | 84 | 28.6 |
ROU assets obtained in exchange for operating lease obligations | $ 36 | $ 24.7 | $ 28.1 |
Business And Basis Of Presentat
Business And Basis Of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Business Overview The Company provides products that are used to diagnose, treat and prevent disease and ailments of the teeth, gums and supporting bone, as well as to improve the aesthetics of the human smile. The Company is a worldwide provider of a broad range of dental implants, orthodontic appliances, general dental consumables, equipment and services and is dedicated to driving technological innovations that help dental professionals improve clinical outcomes and enhance productivity. The Company was formed in 2018, as a wholly-owned subsidiary of Danaher Corporation (“Danaher”), to serve as the ultimate parent company of the dental platform of Danaher. On September 20, 2019, the Company completed its initial public offering and on December 18, 2019, Danaher completed the disposition of its ownership interest in the Company referred to herein as the “Separation”. The Company operates in two business segments: Specialty Products & Technologies and Equipment & Consumables. The Company’s Specialty Products & Technologies segment develops, manufactures and markets dental implant systems, including regenerative solutions, dental prosthetics and associated treatment software and technologies, as well as orthodontic bracket systems, aligners and lab products. The Company’s Equipment & Consumables segment develops, manufactures and markets dental equipment and supplies used in dental offices, including digital imaging systems, software and other visualization/magnification systems; endodontic systems and related consumables; and restorative materials and instruments, rotary burs, impression materials, bonding agents and cements and infection prevention products. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). As discussed in Note 4, Discontinued Operations, on December 31, 2021, the Company sold its KaVo dental treatment unit and instrument business (the "KaVo Treatment Unit and Instrument Business"), which was part of the Company’s Equipment and Consumables segment. The previously reported amounts for the KaVo Treatment Unit and Instrument Business have been reclassified to discontinued operations for all periods presented. All segment information and descriptions exclude the KaVo Treatment Unit and Instrument Business. Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the novel coronavirus (“COVID-19”) pandemic. The extent of the impact of the COVID-19 pandemic on the Company remains uncertain and difficult to predict because of the dynamic and evolving nature of the situation. The global impact of the outbreak continues to adversely affect many industries, and different geographies continue to reflect the effects of public health restrictions in various ways. The economic recovery following the impact of the COVID-19 pandemic is only partially underway and has been gradual, uneven and characterized by meaningful dispersion across sectors and regions with uncertainty regarding its ultimate length and trajectory. During the year ended December 31, 2022, notwithstanding improvement in many markets in which the Company operates due to a return to more normalized business operations, certain markets continued to be adversely impacted by COVID-19. In particular, sales decreased in China due to lockdowns early in the year and a subsequent relaxing of restrictions, which resulted in increased infection rates. In addition, Russia’s invasion of Ukraine and the global response to this invasion, including sanctions imposed by the U.S. and other countries, could have an adverse impact on the Company’s business, including impacting the Company’s ability to market and sell products in the affected regions, potentially heightening our risk of cyber security attacks, impacting its ability to enforce its intellectual property rights in Russia, creating disruptions in the global supply chain, and by potentially having an adverse impact on the global economy, financial markets, energy markets, currency rates and otherwise. Accounting Principles The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. The Consolidated Financial Statements also reflect the impact of noncontrolling interests. Noncontrolling interests do not have a significant impact on the Company’s consolidated results of operations, therefore income attributable to noncontrolling interests are not presented separately in the Company’s Consolidated Statements of Operations. Income attributable to noncontrolling interests have been reflected in selling, general and administrative expenses and were insignificant in all periods presented. Reclassifications of certain prior year amounts have been made to conform to the current year presentation. Use of Estimates The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. The Company bases these estimates on historical experience, the current economic environment and on various other assumptions that are believed to be reasonable under the circumstances. However, uncertainties associated with these estimates exist and actual results may differ materially from these estimates. Acquisitions The Company continually evaluates potential acquisitions that either strategically fit with the Company’s existing portfolio or expand the Company’s portfolio into new and attractive business areas. Among other things, goodwill arises because the purchase prices for these businesses reflect a number of factors including the future earnings and cash flow potential of these businesses, the multiple to earnings, cash flow and other factors at which similar businesses have been purchased by other acquirers, the competitive nature of the processes by which the Company acquired the businesses, avoidance of the time and costs which would be required (and the associated risks that would be encountered) to enhance the Company’s existing product offerings to key target markets and enter into new and profitable businesses and the complementary strategic fit and resulting synergies these businesses bring to existing operations. We account for acquisitions under Accounting Standards Codification (“ASC“) 805 Business Combinations and use the acquisition method of accounting. The consideration transferred for the acquisition of a subsidiary comprises (i) fair values of the assets transferred; (ii) liabilities assumed of the acquired business; and (iii) fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Company makes an initial allocation of the purchase price at the date of acquisition based upon its estimation of the fair value of the acquired assets and assumed liabilities. The Company obtains the information used to estimate the fair values during due diligence and through other sources. In the months after closing, up to 12 months, as the Company obtains additional information that existed at the acquisition date about these assets and liabilities, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Only items that existed as of the acquisition date are considered for subsequent adjustment. The Company makes the appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. Accounts Receivable and Allowances for Credit Losses All trade accounts receivable are reported on the accompanying Consolidated Balance Sheets adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from the Company’s trade accounts receivable portfolio. Determination of the allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, therefore, net income. The Company regularly performs detailed reviews of its portfolios to determine if an impairment has occurred and evaluates the collectability of receivables based on a combination of various financial and qualitative factors that may affect customers’ ability to pay, including customers’ financial condition, debt-servicing ability, past payment experience and credit bureau information and forecasts. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. Inventory Valuation Inventories include the costs of material, labor and overhead. Inventories are stated at the lower of cost or net realizable value primarily using the first-in, first-out method. Market value for raw materials is based on replacement costs and for other inventory classifications is based on net realizable value. The Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume. Based on this evaluation, provisions are made to write inventory down to its net realizable value. Property, Plant and Equipment Property, plant and equipment are carried at cost. The provision for depreciation has been computed principally by the straight-line method based on the estimated useful lives of the depreciable assets as follows: Category Useful Life Buildings 30 years Leased assets and leasehold improvements Amortized over the lesser of the economic life of the asset or the term of the lease Machinery, equipment and other assets 3 – 10 years Estimated useful lives are periodically reviewed and, when appropriate, changes to estimates are made prospectively. Leases The Company determines if an arrangement is a lease at inception and evaluates each lease agreement to determine whether the lease is an operating or finance lease. For leases where the Company is the lessee, right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also consists of any prepaid lease payments, lease incentives received, costs which will be incurred in exiting a lease and the amount of any asset or liability recognized on business combinations relating to favorable or unfavorable lease terms. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, utilities, inflation and/or changes in other indexes. Investments Investments over which the Company has a significant influence but not a controlling interest, are accounted for using the equity method of accounting which requires the Company to record its initial investment at cost and adjust the balance each period for the Company’s share of the investee’s income or loss and dividends paid. No significant realized or unrealized gains or losses were recorded during the three years ended December 31, 2022, 2021 and 2020 with respect to these investments. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, trade accounts receivable, nonqualified deferred compensation plans, contingent consideration, derivatives, trade accounts payable and long-term debt. Due to their short-term nature, the carrying values for cash and cash equivalents, trade accounts receivable and trade accounts payable approximate fair value. Refer to Note 12 for the fair values of the Company’s other financial instruments. Goodwill and Other Intangible Assets Goodwill and other intangible assets result from the Company’s acquisition of existing businesses. In accordance with accounting standards related to business combinations, goodwill is not amortized; however, certain finite-lived identifiable intangible assets, primarily customer relationships and acquired technology, are amortized over their estimated useful lives. Goodwill and indefinite-lived intangible assets are reviewed for impairment annually in the fourth quarter of each fiscal year or whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. The Company first assessed qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount or performed a quantitative impairment test. When tested quantitatively, the Company uses a combination of techniques, including an income approach and a market-based approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In making this assessment, management relies on a number of factors, including expected future operating results, business plans, economic projections, anticipated future cash flows, business trends and the Company’s market capitalization. The Company’s reporting units are the financial components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. The Company did not record any impairment loss for goodwill or indefinite-lived intangible assets in 2022, 2021 and 2020. Management reviews the carrying amounts of other finite-lived intangible assets whenever events or circumstances indicate that the carrying amounts of an asset may not be recoverable. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit, and adverse legal or regulatory developments. If it is determined that such indicators are present and the review indicates that the assets will not be fully recoverable based on undiscounted estimated cash flows, their carrying values are reduced to estimated fair market value. Estimated fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. For the purposes of identifying and measuring impairment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Refer to Note 9 for additional information about the Company’s goodwill and other intangible assets. Revenue Recognition The Company derives revenues primarily from the sale of Specialty Products & Technologies and Equipment & Consumables products and services. Revenue is recognized when control of the promised products or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services (the transaction price). A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. For equipment, consumables and spare parts sold by the Company, control transfers to the customer at a point in time. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer, the customer must have the significant risks and rewards of ownership, and where acceptance is not a formality, the customer must have accepted the product or service. The Company’s principal terms of sale are FOB Shipping Point, or equivalent, and, as such, the Company primarily transfers control and records revenue for product sales upon shipment. Sales arrangements with delivery terms that are not FOB Shipping Point are not recognized upon shipment and the transfer of control for revenue recognition is evaluated based on the associated shipping terms and customer obligations. If a performance obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation or acceptance by the customer), revenue recognition for that performance obligation is deferred until such commitments have been fulfilled. Returns for products sold are estimated and recorded as a reduction of revenue at the time of sale. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are recorded as a reduction of revenue at the time of sale because these allowances reflect a reduction in the transaction price. Product returns, customer allowances and rebates are estimated based on historical experience and known trends. For extended warranty and service, control transfers to the customer over the term of the arrangement. Revenue for extended warranty and service is recognized based upon the period of time elapsed under the arrangement. For a contract with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate standalone selling price is the price observed in standalone sales to customers; however, when prices in standalone sales are not available the Company may use third-party pricing for similar products or services or estimate the standalone selling price. Allocation of the transaction price is determined at the contracts’ inception. The Company does not adjust transaction price for the effects of a significant financing component when the period between the transfer of the promised good or service to the customer and payment for that good or service by the customer is expected to be one year or less. Shipping and Handling Shipping and handling costs are considered a fulfillment cost and are included as a component of cost of sales. Revenue derived from shipping and handling costs billed to customers is included in sales. Advertising Advertising costs are expensed as incurred. Research and Development The Company conducts research and development activities for the purpose of developing new products, enhancing the functionality, effectiveness, ease of use and reliability of the Company’s existing products and expanding the applications for which uses of the Company’s products are appropriate. Research and development costs are expensed as incurred. Income Taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. Deferred tax assets generally represent items that can be used as a tax deduction or credit in the Company’s tax return in future years for which the tax benefit has already been reflected on the Company’s Consolidated Statements of Operations. The Company establishes valuation allowances for its deferred tax assets if it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities generally represent items that have already been taken as a deduction on the Company’s tax return but have not yet been recognized as an expense in the Company’s Consolidated Statements of Operations. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income tax expense in the period that includes the enactment date. The Company provides for unrecognized tax benefits when, based upon the technical merits, it is “more likely than not” that an uncertain tax position will not be sustained upon examination. Judgment is required in evaluating tax positions and determining income tax provisions. The Company re-evaluates the technical merits of its tax positions and may recognize an uncertain tax benefit in certain circumstances, including when: (1) a tax audit is completed; (2) applicable tax laws change, including a tax case ruling or legislative guidance; or (3) the applicable statute of limitations expires. The Company recognizes potential accrued interest and penalties associated with unrecognized tax positions in income tax expense. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. Based on the Company’s current analysis of the provisions, the Company does not believe this legislation will have a material impact on its Consolidated Financial Statements. Restructuring The Company periodically initiates restructuring activities to appropriately position the Company’s cost base relative to prevailing economic conditions and associated customer demand as well as in connection with certain acquisitions. Costs associated with productivity improvement and restructuring actions can include termination benefits and related charges in addition to facility closure, contract termination and other related activities. The Company records the cost of the restructuring activities when impairment is identified or when the associated liability is incurred. Refer to Note 20 for additional information. Foreign Currency Translation Exchange rate adjustments resulting from foreign currency transactions are recognized in net income, whereas effects resulting from the translation of financial statements are reflected as a component of accumulated other comprehensive loss within equity. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates and income statement accounts are translated at weighted average rates. Net foreign currency transaction gains or losses were not material in any of the years presented. Derivative Financial Instruments The Company is neither a dealer nor a trader in derivative instruments. The Company has generally accepted the exposure to transactional exchange rate movements without using derivative instruments to manage this risk, although the Company from time to time partially hedges its net investments in foreign operations against adverse movements in exchange rates through foreign currency-denominated debt and cross-currency swaps. The Company may at times also enter into interest rate swaps to mitigate a portion of its interest rate risk related to the Company’s debt. The derivative instruments are recorded on the Consolidated Balance Sheets as either an asset or liability measured at fair value. To the extent the interest rate swap qualifies as an effective hedge, changes in fair value are recognized in accumulated other comprehensive loss within equity. Changes in the value of the foreign currency denominated debt and cross-currency swaps designated as hedges of the Company’s net investment in foreign operations based on spot rates are recognized in accumulated other comprehensive loss within equity and offset changes in the value of the Company’s foreign currency denominated operations. Refer to Note 11 for additional information on derivative financial instruments. Loss Contingencies The Company records a reserve for loss contingencies when it is both probable that a loss will be incurred and the amount of the loss is reasonably estimable. The Company evaluates pending litigation and other contingencies at least quarterly and adjusts the reserve for such contingencies for changes in probable and reasonably estimable losses. Accumulated Other Comprehensive Loss Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Foreign currency translation adjustments related to the Company’s cross-currency swap arrangements and foreign currency denominated debt that are designated as net investment hedges are adjusted for income taxes as those arrangements are not indefinite. Changes in the funded status of the pension plans, net of taxes, are recognized in the year in which the changes occur and reported in other comprehensive loss. Stock-Based Compensation The Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted, including stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”), based on the fair value of the award as of the grant date. Equity-based compensation expense is recognized net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, except that in the case of RSUs compensation expense is recognized using an accelerated attribution method. Refer to Note 17 for additional information on the stock-based compensation plan in which certain employees of the Company participate. Pension Plans The Company measures its pension assets and obligations that determine the funded status as of the end of the Company’s fiscal year, and recognizes an asset for an over funded status or a liability for an underfunded status in its Consolidated Balance Sheets. Changes in the funded status of the pension plans are recognized in the year in which the changes occur and reported in other comprehensive loss. Refer to Note 13 for additional information on the Company’s pension plans including a discussion of the actuarial assumptions, the Company’s policy for recognizing the associated gains and losses and the method used to estimate service and interest cost components. Accounting Standards Recently Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805) , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts, rather than at fair value. This standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. The Company adopted this guidance on January 1, 2022, which did not have a significant impact on the Company’s Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40),” (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. This guidance is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. ASU 2020-06 was effective for public entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Effective January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective adoption approach. The cumulative effect of the change was recognized as an adjustment to the opening balance of retained earnings at the date of adoption. The comparative prior year information has not been restated and continues to be presented according to accounting standards in effect for those periods. The adoption of ASU 2020-06 resulted in a $75.0 million increase to the carrying value of the convertible notes due 2025, net of deferred debt issuance costs and unamortized discount and a decrease to additional paid-in capital of $77.8 million. Additionally, the adoption resulted in a $21.4 million increase to retained earnings and an $18.6 million decrease to the related net deferred tax liability associated with the reduction of unamortized debt discount and deferred debt issuance costs. Refer to Note 16 for a further discussion of the impact of adopting ASU 2020-06. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective for public entities through December 31, 2022. However, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 to defer the effective date of ASU 2020-04 from December 31, 2022 to December 31, 2024. The Company adopted ASU 2020-04 as of December 31, 2022 and its adoption did not have an impact on the Company’s Consolidated Financial Statements. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | BUSINESS AND BASIS OF PRESENTATION Business Overview The Company provides products that are used to diagnose, treat and prevent disease and ailments of the teeth, gums and supporting bone, as well as to improve the aesthetics of the human smile. The Company is a worldwide provider of a broad range of dental implants, orthodontic appliances, general dental consumables, equipment and services and is dedicated to driving technological innovations that help dental professionals improve clinical outcomes and enhance productivity. The Company was formed in 2018, as a wholly-owned subsidiary of Danaher Corporation (“Danaher”), to serve as the ultimate parent company of the dental platform of Danaher. On September 20, 2019, the Company completed its initial public offering and on December 18, 2019, Danaher completed the disposition of its ownership interest in the Company referred to herein as the “Separation”. The Company operates in two business segments: Specialty Products & Technologies and Equipment & Consumables. The Company’s Specialty Products & Technologies segment develops, manufactures and markets dental implant systems, including regenerative solutions, dental prosthetics and associated treatment software and technologies, as well as orthodontic bracket systems, aligners and lab products. The Company’s Equipment & Consumables segment develops, manufactures and markets dental equipment and supplies used in dental offices, including digital imaging systems, software and other visualization/magnification systems; endodontic systems and related consumables; and restorative materials and instruments, rotary burs, impression materials, bonding agents and cements and infection prevention products. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). As discussed in Note 4, Discontinued Operations, on December 31, 2021, the Company sold its KaVo dental treatment unit and instrument business (the "KaVo Treatment Unit and Instrument Business"), which was part of the Company’s Equipment and Consumables segment. The previously reported amounts for the KaVo Treatment Unit and Instrument Business have been reclassified to discontinued operations for all periods presented. All segment information and descriptions exclude the KaVo Treatment Unit and Instrument Business. Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the novel coronavirus (“COVID-19”) pandemic. The extent of the impact of the COVID-19 pandemic on the Company remains uncertain and difficult to predict because of the dynamic and evolving nature of the situation. The global impact of the outbreak continues to adversely affect many industries, and different geographies continue to reflect the effects of public health restrictions in various ways. The economic recovery following the impact of the COVID-19 pandemic is only partially underway and has been gradual, uneven and characterized by meaningful dispersion across sectors and regions with uncertainty regarding its ultimate length and trajectory. During the year ended December 31, 2022, notwithstanding improvement in many markets in which the Company operates due to a return to more normalized business operations, certain markets continued to be adversely impacted by COVID-19. In particular, sales decreased in China due to lockdowns early in the year and a subsequent relaxing of restrictions, which resulted in increased infection rates. In addition, Russia’s invasion of Ukraine and the global response to this invasion, including sanctions imposed by the U.S. and other countries, could have an adverse impact on the Company’s business, including impacting the Company’s ability to market and sell products in the affected regions, potentially heightening our risk of cyber security attacks, impacting its ability to enforce its intellectual property rights in Russia, creating disruptions in the global supply chain, and by potentially having an adverse impact on the global economy, financial markets, energy markets, currency rates and otherwise. Accounting Principles The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. The Consolidated Financial Statements also reflect the impact of noncontrolling interests. Noncontrolling interests do not have a significant impact on the Company’s consolidated results of operations, therefore income attributable to noncontrolling interests are not presented separately in the Company’s Consolidated Statements of Operations. Income attributable to noncontrolling interests have been reflected in selling, general and administrative expenses and were insignificant in all periods presented. Reclassifications of certain prior year amounts have been made to conform to the current year presentation. Use of Estimates The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. The Company bases these estimates on historical experience, the current economic environment and on various other assumptions that are believed to be reasonable under the circumstances. However, uncertainties associated with these estimates exist and actual results may differ materially from these estimates. Acquisitions The Company continually evaluates potential acquisitions that either strategically fit with the Company’s existing portfolio or expand the Company’s portfolio into new and attractive business areas. Among other things, goodwill arises because the purchase prices for these businesses reflect a number of factors including the future earnings and cash flow potential of these businesses, the multiple to earnings, cash flow and other factors at which similar businesses have been purchased by other acquirers, the competitive nature of the processes by which the Company acquired the businesses, avoidance of the time and costs which would be required (and the associated risks that would be encountered) to enhance the Company’s existing product offerings to key target markets and enter into new and profitable businesses and the complementary strategic fit and resulting synergies these businesses bring to existing operations. We account for acquisitions under Accounting Standards Codification (“ASC“) 805 Business Combinations and use the acquisition method of accounting. The consideration transferred for the acquisition of a subsidiary comprises (i) fair values of the assets transferred; (ii) liabilities assumed of the acquired business; and (iii) fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Company makes an initial allocation of the purchase price at the date of acquisition based upon its estimation of the fair value of the acquired assets and assumed liabilities. The Company obtains the information used to estimate the fair values during due diligence and through other sources. In the months after closing, up to 12 months, as the Company obtains additional information that existed at the acquisition date about these assets and liabilities, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Only items that existed as of the acquisition date are considered for subsequent adjustment. The Company makes the appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. Accounts Receivable and Allowances for Credit Losses All trade accounts receivable are reported on the accompanying Consolidated Balance Sheets adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from the Company’s trade accounts receivable portfolio. Determination of the allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, therefore, net income. The Company regularly performs detailed reviews of its portfolios to determine if an impairment has occurred and evaluates the collectability of receivables based on a combination of various financial and qualitative factors that may affect customers’ ability to pay, including customers’ financial condition, debt-servicing ability, past payment experience and credit bureau information and forecasts. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific reserve is recorded against amounts due to reduce the recognized receivable to the amount reasonably expected to be collected. Inventory Valuation Inventories include the costs of material, labor and overhead. Inventories are stated at the lower of cost or net realizable value primarily using the first-in, first-out method. Market value for raw materials is based on replacement costs and for other inventory classifications is based on net realizable value. The Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume. Based on this evaluation, provisions are made to write inventory down to its net realizable value. Property, Plant and Equipment Property, plant and equipment are carried at cost. The provision for depreciation has been computed principally by the straight-line method based on the estimated useful lives of the depreciable assets as follows: Category Useful Life Buildings 30 years Leased assets and leasehold improvements Amortized over the lesser of the economic life of the asset or the term of the lease Machinery, equipment and other assets 3 – 10 years Estimated useful lives are periodically reviewed and, when appropriate, changes to estimates are made prospectively. Leases The Company determines if an arrangement is a lease at inception and evaluates each lease agreement to determine whether the lease is an operating or finance lease. For leases where the Company is the lessee, right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also consists of any prepaid lease payments, lease incentives received, costs which will be incurred in exiting a lease and the amount of any asset or liability recognized on business combinations relating to favorable or unfavorable lease terms. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, utilities, inflation and/or changes in other indexes. Investments Investments over which the Company has a significant influence but not a controlling interest, are accounted for using the equity method of accounting which requires the Company to record its initial investment at cost and adjust the balance each period for the Company’s share of the investee’s income or loss and dividends paid. No significant realized or unrealized gains or losses were recorded during the three years ended December 31, 2022, 2021 and 2020 with respect to these investments. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, trade accounts receivable, nonqualified deferred compensation plans, contingent consideration, derivatives, trade accounts payable and long-term debt. Due to their short-term nature, the carrying values for cash and cash equivalents, trade accounts receivable and trade accounts payable approximate fair value. Refer to Note 12 for the fair values of the Company’s other financial instruments. Goodwill and Other Intangible Assets Goodwill and other intangible assets result from the Company’s acquisition of existing businesses. In accordance with accounting standards related to business combinations, goodwill is not amortized; however, certain finite-lived identifiable intangible assets, primarily customer relationships and acquired technology, are amortized over their estimated useful lives. Goodwill and indefinite-lived intangible assets are reviewed for impairment annually in the fourth quarter of each fiscal year or whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. The Company first assessed qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount or performed a quantitative impairment test. When tested quantitatively, the Company uses a combination of techniques, including an income approach and a market-based approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In making this assessment, management relies on a number of factors, including expected future operating results, business plans, economic projections, anticipated future cash flows, business trends and the Company’s market capitalization. The Company’s reporting units are the financial components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. The Company did not record any impairment loss for goodwill or indefinite-lived intangible assets in 2022, 2021 and 2020. Management reviews the carrying amounts of other finite-lived intangible assets whenever events or circumstances indicate that the carrying amounts of an asset may not be recoverable. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit, and adverse legal or regulatory developments. If it is determined that such indicators are present and the review indicates that the assets will not be fully recoverable based on undiscounted estimated cash flows, their carrying values are reduced to estimated fair market value. Estimated fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. For the purposes of identifying and measuring impairment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Refer to Note 9 for additional information about the Company’s goodwill and other intangible assets. Revenue Recognition The Company derives revenues primarily from the sale of Specialty Products & Technologies and Equipment & Consumables products and services. Revenue is recognized when control of the promised products or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services (the transaction price). A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. For equipment, consumables and spare parts sold by the Company, control transfers to the customer at a point in time. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer, the customer must have the significant risks and rewards of ownership, and where acceptance is not a formality, the customer must have accepted the product or service. The Company’s principal terms of sale are FOB Shipping Point, or equivalent, and, as such, the Company primarily transfers control and records revenue for product sales upon shipment. Sales arrangements with delivery terms that are not FOB Shipping Point are not recognized upon shipment and the transfer of control for revenue recognition is evaluated based on the associated shipping terms and customer obligations. If a performance obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation or acceptance by the customer), revenue recognition for that performance obligation is deferred until such commitments have been fulfilled. Returns for products sold are estimated and recorded as a reduction of revenue at the time of sale. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are recorded as a reduction of revenue at the time of sale because these allowances reflect a reduction in the transaction price. Product returns, customer allowances and rebates are estimated based on historical experience and known trends. For extended warranty and service, control transfers to the customer over the term of the arrangement. Revenue for extended warranty and service is recognized based upon the period of time elapsed under the arrangement. For a contract with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate standalone selling price is the price observed in standalone sales to customers; however, when prices in standalone sales are not available the Company may use third-party pricing for similar products or services or estimate the standalone selling price. Allocation of the transaction price is determined at the contracts’ inception. The Company does not adjust transaction price for the effects of a significant financing component when the period between the transfer of the promised good or service to the customer and payment for that good or service by the customer is expected to be one year or less. Shipping and Handling Shipping and handling costs are considered a fulfillment cost and are included as a component of cost of sales. Revenue derived from shipping and handling costs billed to customers is included in sales. Advertising Advertising costs are expensed as incurred. Research and Development The Company conducts research and development activities for the purpose of developing new products, enhancing the functionality, effectiveness, ease of use and reliability of the Company’s existing products and expanding the applications for which uses of the Company’s products are appropriate. Research and development costs are expensed as incurred. Income Taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. Deferred tax assets generally represent items that can be used as a tax deduction or credit in the Company’s tax return in future years for which the tax benefit has already been reflected on the Company’s Consolidated Statements of Operations. The Company establishes valuation allowances for its deferred tax assets if it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities generally represent items that have already been taken as a deduction on the Company’s tax return but have not yet been recognized as an expense in the Company’s Consolidated Statements of Operations. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income tax expense in the period that includes the enactment date. The Company provides for unrecognized tax benefits when, based upon the technical merits, it is “more likely than not” that an uncertain tax position will not be sustained upon examination. Judgment is required in evaluating tax positions and determining income tax provisions. The Company re-evaluates the technical merits of its tax positions and may recognize an uncertain tax benefit in certain circumstances, including when: (1) a tax audit is completed; (2) applicable tax laws change, including a tax case ruling or legislative guidance; or (3) the applicable statute of limitations expires. The Company recognizes potential accrued interest and penalties associated with unrecognized tax positions in income tax expense. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. Based on the Company’s current analysis of the provisions, the Company does not believe this legislation will have a material impact on its Consolidated Financial Statements. Restructuring The Company periodically initiates restructuring activities to appropriately position the Company’s cost base relative to prevailing economic conditions and associated customer demand as well as in connection with certain acquisitions. Costs associated with productivity improvement and restructuring actions can include termination benefits and related charges in addition to facility closure, contract termination and other related activities. The Company records the cost of the restructuring activities when impairment is identified or when the associated liability is incurred. Refer to Note 20 for additional information. Foreign Currency Translation Exchange rate adjustments resulting from foreign currency transactions are recognized in net income, whereas effects resulting from the translation of financial statements are reflected as a component of accumulated other comprehensive loss within equity. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates and income statement accounts are translated at weighted average rates. Net foreign currency transaction gains or losses were not material in any of the years presented. Derivative Financial Instruments The Company is neither a dealer nor a trader in derivative instruments. The Company has generally accepted the exposure to transactional exchange rate movements without using derivative instruments to manage this risk, although the Company from time to time partially hedges its net investments in foreign operations against adverse movements in exchange rates through foreign currency-denominated debt and cross-currency swaps. The Company may at times also enter into interest rate swaps to mitigate a portion of its interest rate risk related to the Company’s debt. The derivative instruments are recorded on the Consolidated Balance Sheets as either an asset or liability measured at fair value. To the extent the interest rate swap qualifies as an effective hedge, changes in fair value are recognized in accumulated other comprehensive loss within equity. Changes in the value of the foreign currency denominated debt and cross-currency swaps designated as hedges of the Company’s net investment in foreign operations based on spot rates are recognized in accumulated other comprehensive loss within equity and offset changes in the value of the Company’s foreign currency denominated operations. Refer to Note 11 for additional information on derivative financial instruments. Loss Contingencies The Company records a reserve for loss contingencies when it is both probable that a loss will be incurred and the amount of the loss is reasonably estimable. The Company evaluates pending litigation and other contingencies at least quarterly and adjusts the reserve for such contingencies for changes in probable and reasonably estimable losses. Accumulated Other Comprehensive Loss Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Foreign currency translation adjustments related to the Company’s cross-currency swap arrangements and foreign currency denominated debt that are designated as net investment hedges are adjusted for income taxes as those arrangements are not indefinite. Changes in the funded status of the pension plans, net of taxes, are recognized in the year in which the changes occur and reported in other comprehensive loss. Stock-Based Compensation The Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted, including stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”), based on the fair value of the award as of the grant date. Equity-based compensation expense is recognized net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, except that in the case of RSUs compensation expense is recognized using an accelerated attribution method. Refer to Note 17 for additional information on the stock-based compensation plan in which certain employees of the Company participate. Pension Plans The Company measures its pension assets and obligations that determine the funded status as of the end of the Company’s fiscal year, and recognizes an asset for an over funded status or a liability for an underfunded status in its Consolidated Balance Sheets. Changes in the funded status of the pension plans are recognized in the year in which the changes occur and reported in other comprehensive loss. Refer to Note 13 for additional information on the Company’s pension plans including a discussion of the actuarial assumptions, the Company’s policy for recognizing the associated gains and losses and the method used to estimate service and interest cost components. Accounting Standards Recently Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805) , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts, rather than at fair value. This standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. The Company adopted this guidance on January 1, 2022, which did not have a significant impact on the Company’s Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40),” (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. This guidance is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. ASU 2020-06 was effective for public entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Effective January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective adoption approach. The cumulative effect of the change was recognized as an adjustment to the opening balance of retained earnings at the date of adoption. The comparative prior year information has not been restated and continues to be presented according to accounting standards in effect for those periods. The adoption of ASU 2020-06 resulted in a $75.0 million increase to the carrying value of the convertible notes due 2025, net of deferred debt issuance costs and unamortized discount and a decrease to additional paid-in capital of $77.8 million. Additionally, the adoption resulted in a $21.4 million increase to retained earnings and an $18.6 million decrease to the related net deferred tax liability associated with the reduction of unamortized debt discount and deferred debt issuance costs. Refer to Note 16 for a further discussion of the impact of adopting ASU 2020-06. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective for public entities through December 31, 2022. However, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 to defer the effective date of ASU 2020-04 from December 31, 2022 to December 31, 2024. The Company adopted ASU 2020-04 as of December 31, 2022 and its adoption did not have an impact on the Company’s Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS The Company completed the following acquisitions, using the acquisition method of accounting during, the year ended December 31, 2022: Osteogenics Biomedical Inc., Allotech LLC and OBI Biologics, Inc. On July 5, 2022, the Company acquired all of the equity of Osteogenics Biomedical Inc., Allotech LLC and OBI Biologics, Inc. (together "Osteogenics") for total consideration of approximately $128.2 million, subject to certain customary adjustments as provided in the Equity Purchase Agreement dated May 17, 2022. Osteogenics develops innovative regenerative solutions for periodontists, oral and maxillofacial surgeons, and clinicians involved in implant dentistry throughout the world, and is part of the Company’s Specialty Products & Technologies segment. Carestream Dental Technology Parent Limited’s Intraoral Scanner Business On April 20, 2022, the Company completed the acquisition of Carestream Dental Technology Parent Limited’s (“Carestream Dental”) intraoral scanner business (the “Intraoral Scanner Business”) for total consideration of $580.3 million, including contingent consideration of $7.5 million, and subject to certain customary adjustments as provided in the Stock and Asset Purchase Agreement dated December 21, 2021 and as subsequently amended by the closing agreement dated as of April 20, 2022. The Intraoral Scanner Business manufactures, markets, sells, commercializes, distributes, services, trains, supports, and maintains operations of intraoral scanners and software, and is part of the Company’s Equipment & Consumables segment. The Company purchased the Intraoral Scanner Business through the acquisition of certain assets and the assumption of certain liabilities as well as the acquisition of all of the equity of certain subsidiaries of Carestream Dental. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates ($ in millions): Osteogenics Intraoral Scanner Business Assets acquired: Cash $ 2.1 $ 2.7 Accounts receivable 2.5 0.1 Inventories 13.3 6.1 Intangible assets 53.0 129.8 Property, plant and equipment — 0.3 Prepaids and Other Current Assets 1.3 — Goodwill 77.3 373.1 Non-current deferred tax asset — 96.0 Operating lease right-of-use assets 2.6 0.9 Other long-term assets 4.9 0.2 Total assets acquired 157.0 609.2 Liabilities assumed: Accounts payable (4.1) (0.5) Accrued expenses and other liabilities (2.5) (27.9) Non-current deferred tax liability (14.3) — Other long-term liabilities (5.8) — Operating lease liabilities (2.1) (0.5) Total liabilities assumed (28.8) (28.9) Total net assets acquired $ 128.2 $ 580.3 The Company may up to 12 months after closing refine the estimates of fair value and more accurately allocate the purchase price. Only items that existed as of the acquisition date are considered for subsequent adjustment. The finalization of the acquisition valuation assessment for these acquisitions may result in a change in the valuation of deferred taxes and goodwill, which could have a material impact on the Company’s financial statements. The intangible assets acquired consist of trade name, developed technology, and customer relationships. The weighted average amortization period of the acquired intangible assets in the aggregate is 8 and 10 years for the Intraoral Scanner Business and Osteogenics, respectively. The excess of the purchase price over the fair value assigned to the assets acquired and liabilities assumed represents the goodwill resulting from the acquisitions. Goodwill attributable to the acquisitions has been recorded as a non-current asset and is not amortized, but is subject to review at least on an annual basis for impairment. Goodwill recognized was primarily attributable to expected operating efficiencies and expansion opportunities in the businesses acquired. Goodwill is not deductible for income tax purposes. The pro forma impact of the acquisitions is not presented as the acquisitions were not considered material to the Company's Consolidated Financial Statements. Legal, accounting, and other professional service costs associated with the acquisitions were $14.5 million for the year ended December 31, 2022, and have been recorded as selling, general and administrative expense in the Consolidated Statements of Operations. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS On December 31, 2021, the Company sold substantially all of the KaVo Treatment Unit and Instrument Business (the “Divestiture”) to planmeca Verwaltungs Gmbh, Germany (“Planmeca”), pursuant to the master sale and purchase agreement (the “Purchase Agreement”) among the Company, Planmeca, and Planmeca Oy, as guarantor. On December 30, 2021, the Company entered into an amendment to the Purchase Agreement (the "Amendment"), providing that the transfer of net assets in Russia, China and Brazil (the "Relevant Jurisdictions") would be deferred until the purchaser had formed entities for such transfer of assets in each such Relevant Jurisdiction and the applicable asset transfer agreement could be executed and consummated (each such asset transfer, a "Deferred Local Closing"). Except for the implementation of the Deferred Local Closings and related matters regarding the assets in the Relevant Jurisdictions, the provisions, terms and conditions of the Purchase Agreement were not materially amended by the Amendment. The Amendment did not alter the preliminary purchase price that Planmeca paid to the Company upon the closing of the Divestiture and the Company recognized the applicable gain or loss at the time of each Relevant Jurisdiction’s applicable closing. At December 31, 2021, the Company recorded a liability of $10.8 million for the proceeds related to the Relevant Jurisdictions. At December 31, 2022, all three Relevant Jurisdictions have closed and the related liability associated with the proceeds released. In accordance with the terms of the Purchase Agreement, the Company received total net cash consideration of $386.4 million. The results of the Divestiture are presented as discontinued operations for all periods presented in the accompanying Consolidated Financial Statements, with the exception of the Consolidated Statements of Cash Flows which include the financial results of the KaVo Treatment Unit and Instrument Business for all periods presented. The carrying amounts of the assets and liabilities of the Divestiture held for sale are as follows ($ in millions): December 31, 2021 ASSETS Current assets: Assets for Relevant Jurisdictions $ 12.2 Current assets held for sale $ 12.2 LIABILITIES AND EQUITY Current liabilities: Liabilities for Relevant Jurisdictions $ 4.0 Current liabilities held for sale $ 4.0 For the years ended December 31, 2021 and 2020, the amounts represent activity for the entire Divestiture, while amounts for the year ended December 31, 2022, represent activity for the remaining Relevant Jurisdictions prior to closing. The operating results of the Divestiture are reflected in the Consolidated Statements of Operations within income from discontinued operations, net of tax as follows ($ in millions): Year Ended December 31 2022 2021 2020 Sales $ 11.7 $ 413.5 $ 352.9 Cost of sales 9.1 234.6 249.6 Gross profit 2.6 178.9 103.3 Operating expenses: Selling, general and administrative 3.2 75.6 99.3 Research and development — 16.1 14.1 Operating (loss) profit (0.6) 87.2 (10.1) Income tax expense — 21.9 (0.9) (Loss) income from discontinued operations (0.6) 65.3 (9.2) Gain on sale of discontinued operations, net of tax 5.7 11.7 — Net income (loss) from discontinued operations $ 5.1 $ 77.0 $ (9.2) Significant non-cash operating items and capital expenditures for the Divestiture are reflected in the cash flows from operations as follows ($ in millions): Year Ended December 31 2022 2021 2020 Cash flows from operating activities Non-cash restructuring charges $ — $ — $ 9.6 Impairment charges $ — $ — $ 10.5 Depreciation and amortization 1 $ — $ 5.8 $ 10.9 Cash flows from investing activities: Capital expenditures $ — $ 6.7 $ 3.8 1 Depreciation and amortization were no longer recognized once the business was classified as discontinued operations as of August 27, 2021. |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Credit Losses | CREDIT LOSSES The allowance for credit losses is a valuation account deducted from accounts receivable to present the net amount expected to be collected. Accounts receivable are charged off against the allowance when management believes the uncollectibility of an accounts receivable balance is confirmed. Management estimates the adequacy of the allowance by using relevant available information, from internal and external sources, relating to past events, current conditions and forecasts. Historical credit loss experience provides the basis for estimation of expected credit losses and is adjusted as necessary using the relevant information available. The allowance for credit losses is measured on a collective basis when similar risk characteristics exist. The Company has identified one portfolio segment based on the following risk characteristics: geographic regions, product lines, default rates and customer specific factors. The factors used by management in its credit loss analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, the allowance for credit losses may be overstated or understated and a charge or credit to net income (loss) may be required. The rollforward of the allowance for credit losses is summarized as follows ($ in millions): Balance at December 31, 2021 $ 20.7 Foreign currency translation (0.8) Provision for credit losses 4.8 Write-offs charged against the allowance (4.1) Recoveries (4.4) Balance at December 31, 2022 $ 16.2 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The classes of inventory as of December 31 are summarized as follows ($ in millions): 2022 2021 Finished goods $ 229.2 $ 214.3 Work in process 23.9 22.0 Raw materials 103.4 88.3 Reserve for inventory obsolescence (55.7) (60.8) Total $ 300.8 $ 263.8 |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant And Equipment | PROPERTY, PLANT AND EQUIPMENT The classes of property, plant and equipment as of December 31 are summarized as follows ($ in millions): 2022 2021 Land and improvements $ 10.0 $ 10.7 Buildings and improvements 154.5 168.7 Machinery, equipment and other assets 370.2 354.5 Construction in progress 71.2 45.6 Gross property, plant and equipment 605.9 579.5 Less: accumulated depreciation (312.3) (315.4) Property, plant and equipment, net $ 293.6 $ 264.1 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | LEASES The Company has operating leases for office space, warehouses, distribution centers, research and development and manufacturing facilities, equipment and vehicles. Many leases include one or more options to renew, some of which include options to extend the lease for up to 20 years and some leases include options to terminate the lease within 30 days. The Company regularly evaluates the renewal options and, when the options are reasonably certain of being exercised, they are included in the lease term. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, utilities, inflation and/or changes in other indexes. The Company has elected to combine lease and non-lease components for leases of all asset classes where the Company is the lessee. At inception, the Company determines whether an agreement represents a lease and, at commencement, evaluates each lease agreement to determine whether the lease is an operating or finance lease. Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for leased facilities and vehicles, which are paid based on actual costs incurred. The components of operating lease expense for the years ended December 31 were as follows ($ in millions) : 2022 2021 Fixed operating lease expense (a) $ 31.7 $ 32.4 Variable operating lease expense 7.2 6.1 Total operating lease expense $ 38.9 $ 38.5 ______________ (a) Includes short-term leases and sublease income, both of which were not significant. The following table presents the weighted average remaining lease term and weighted average discount rates related to the Company’s operating leases as of December 31: 2022 2021 Weighted average remaining lease term 8 years 9 years Weighted average discount rate 4.1 % 3.5 % The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2022 ($ in millions): 2023 $ 32.2 2024 28.7 2025 23.9 2026 19.8 2027 16.8 Thereafter 50.3 Total operating lease payments 171.7 Less: imputed interest (23.3) Total operating lease liabilities $ 148.4 As of December 31, 2022, the Company had no additional significant operating or finance leases that had not yet commenced. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The Company performed its annual goodwill impairment test on the first business day of the fourth quarter of 2022. The Company used a combination of techniques, including an income approach and a market-based approach in performing its annual goodwill impairment test to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value amount. The Company’s reporting units are the financial components of operating segments which constitute businesses for which discrete financial information is available and regularly reviewed by segment management. No goodwill impairment charges were recorded for the years ended December 31, 2022, 2021 and 2020 and no “triggering” events have occurred subsequent to the performance of the 2022 annual impairment test. The factors used by management in its impairment analysis are inherently subject to uncertainty. If actual results are not consistent with management’s estimates and assumptions, goodwill and other intangible assets may be overstated and a charge to net income may be required. The following is a rollforward of the Company’s goodwill by segment ($ in millions): Specialty Products & Technologies Equipment & Consumables Total Balance, December 31, 2021 $ 2,029.7 $ 1,102.3 $ 3,132.0 Acquisitions 77.3 373.1 450.4 Foreign currency translation (59.2) (26.6) (85.8) Balance, December 31, 2022 $ 2,047.8 $ 1,448.8 $ 3,496.6 Finite-lived intangible assets are amortized over the shorter of their legal or estimated useful life. The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset as of December 31 ($ in millions): 2022 2021 Gross Accumulated Gross Accumulated Finite-lived intangibles: Patents and technology $ 432.2 $ (236.4) $ 313.8 $ (215.3) Customer relationships and other intangibles 924.1 (648.7) 907.4 (610.9) Trademarks and trade names 224.8 (100.2) 216.3 (75.4) Total finite-lived intangibles 1,581.1 (985.3) 1,437.5 (901.6) Indefinite-lived intangibles: Trademarks and trade names 490.9 — 510.5 — Total intangibles $ 2,072.0 $ (985.3) $ 1,948.0 $ (901.6) Total intangible amortization expense in 2022, 2021 and 2020 was $106.0 million, $81.5 million and $87.3 million, respectively. Based on the intangible assets recorded as of December 31, 2022, amortization expense is estimated as follows for the next five years and thereafter: Years Ending December 31, 2023 $ 99.3 2024 89.6 2025 89.1 2026 81.1 2027 76.5 Thereafter 160.2 $ 595.8 |
Accrued Expenses And Other Liab
Accrued Expenses And Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued expenses and other [Abstract] | |
Accrued Expenses and Other Liabilities | ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities as of December 31 were as follows ($ in millions): 2022 2021 Current Noncurrent Current Noncurrent Compensation and benefits $ 148.0 $ 17.5 $ 188.9 $ 17.9 Sales and product allowances 85.1 1.3 75.4 1.2 Contract liabilities 78.9 8.6 60.1 5.1 Taxes, income and other 42.1 68.6 48.1 201.4 Restructuring-related employee severance, benefits and other 18.9 — 21.9 — Pension benefits 5.6 17.5 5.6 41.7 Loss contingencies 8.1 27.6 8.4 30.3 Derivative financial instruments — — 19.6 — Other 84.7 10.2 134.3 6.6 Total $ 471.4 $ 151.3 $ 562.3 $ 304.2 |
Hedging Transactions And Deriva
Hedging Transactions And Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Transactions and Derivative Financial Instruments | HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS The Company has foreign currency denominated long-term debt in the amount of €208.0 million. This senior unsecured term loan facility represents a partial hedge of the Company’s net investment in foreign operations against adverse movements in exchange rates between the U.S. dollar and the euro. The euro senior unsecured term loan facility is designated and qualifies as a non-derivative hedging instrument. Accordingly, the foreign currency translation of the euro senior unsecured term loan facility is recorded in accumulated other comprehensive loss in equity in the accompanying Consolidated Balance Sheets, offsetting the foreign currency translation adjustment of the Company’s related net investment that is also recorded in accumulated other comprehensive loss in equity (see Note 18). Any ineffective portions of net investment hedges are reclassified from accumulated other comprehensive loss into income during the period of change. The euro senior unsecured term loan facility matures in September 2024. Refer to Note 16 for a further discussion of the above loan facility. The Company has used cross-currency swap derivative contracts to partially hedge its net investments in foreign operations against adverse movements in exchange rates between the U.S. dollar and the euro. The cross-currency swap derivative contracts were agreements to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. The Company maintained cross-currency swap derivative contracts with respect to its $650.0 million senior unsecured term loan facility. These contracts effectively converted the $650.0 million senior unsecured term loan facility to an obligation denominated in euros and partially offset the impact of changes in currency rates on foreign currency denominated net investments. During the year ended December 31, 2022, the Company settled all of its cross-currency swap derivative contracts and as of December 31, 2022 did not have any cross-currency swap derivative contracts outstanding. The changes in the fair value of these instruments were recorded in accumulated other comprehensive loss in equity, in the accompanying Consolidated Balance Sheets, partially offsetting the foreign currency translation adjustment of the Company’s related net investment that was also recorded in accumulated other comprehensive loss as reflected in Note 18. Any ineffective portions of net investment hedges were reclassified from accumulated other comprehensive loss into income during the period of change. The interest income or expense from these swaps was recorded in interest expense, net in the Company’s Consolidated Statements of Operations consistent with the classification of interest expense attributable to the underlying debt. The Company has also used interest rate swap derivative contracts to reduce its variability of cash flows related to interest payments with respect to its senior unsecured term loans. The interest rate swap contracts exchanged interest payments based on variable rates for interest payments based on fixed rates. During the year ended December 31, 2022, the existing interest rate swap matured. As of December 31, 2022, the Company did not have any outstanding interest rate swap contracts. The changes in the fair value of these instruments were recorded in accumulated other comprehensive loss in equity (see Note 18). Any ineffective portions of the cash flow hedges were reclassified from accumulated other comprehensive loss into income during the period of change. The interest income or expense from these swaps was recorded in interest expense in the Company’s Consolidated Statements of Operations consistent with the classification of interest expense attributable to the underlying debt. The following table summarizes the notional values as of December 31, 2022 and 2021 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive loss (“OCI”) for the years ended December 31, 2022 and 2021 ($ in millions): Notional Amount Gain Recognized in OCI Year Ended December 31, 2022 Foreign currency denominated debt $ 222.7 $ 13.8 Interest rate contract — 2.2 Foreign currency contracts — 68.5 Total $ 222.7 $ 84.5 Notional Amount Gain Recognized in OCI Year Ended December 31, 2021 Foreign currency denominated debt $ 236.5 $ 32.5 Interest rate contracts 250.0 6.1 Foreign currency contracts 650.0 49.7 Total $ 1,136.5 $ 88.3 Gains or losses related to the foreign currency contracts and foreign currency denominated debt were classified as foreign currency translation adjustments in the schedule of changes in OCI in Note 18, as these items were attributable to the Company’s hedges of its net investment in foreign operations. Gains or losses related to the interest rate contracts were classified as cash flow hedge adjustments in the schedule of changes in OCI in Note 18. The Company did not reclassify any deferred gains or losses related to net investment and cash flow hedges from accumulated other comprehensive loss to income during the year ended December 31, 2022. The Company reclassified $10.2 million, net of tax, of certain deferred losses related to its net investment hedges from accumulated other comprehensive loss to income during the year ended December 31, 2021 related to the Divestiture. In addition, the Company did not have any ineffectiveness related to net investment and cash flow hedges during the years ended December 31, 2022 and 2021. The cash inflows and outflows associated with the Company’s derivative contracts designated as net investment hedges are classified in investing activities in the accompanying Consolidated Statements of Cash Flows. The Company’s derivative instruments, as well as its non-derivative debt instruments designated and qualifying as net investment hedges, were classified as of December 31, 2022 and 2021, in the Company’s Consolidated Balance Sheets as follows ($ in millions): 2022 2021 Derivative liabilities: Accrued expenses and other liabilities $ — $ 19.6 Nonderivative hedging instruments: Long-term debt $ 222.7 $ 236.5 Amounts related to the Company’s derivatives expected to be reclassified from accumulated other comprehensive loss to net income during the next 12 months are not significant. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value where the Company’s assets and liabilities are required to be carried at fair value and provide for certain disclosures related to the valuation methods used within a valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation; and Level 3 inputs are unobservable inputs based on the Company’s assumptions. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows ($ in millions): Quoted Prices in Significant Other Significant Total December 31, 2022: Liabilities: Deferred compensation plans $ — $ 15.8 $ — $ 15.8 Contingent consideration $ — $ — $ 6.0 $ 6.0 December 31, 2021: Liabilities: Interest rate swap derivative contracts $ — $ 2.2 $ — $ 2.2 Cross-currency swap derivative contracts $ — $ 17.4 $ — $ 17.4 Deferred compensation plans $ — $ 16.5 $ — $ 16.5 Derivative Instruments The cross-currency and interest rate swap derivative contracts were classified as Level 2 in the fair value hierarchy as they are measured using the income approach with the relevant interest rates, foreign currency current exchange rates and forward curves as inputs. Refer to Note 11 for additional information. Deferred Compensation Plans Certain management employees of the Company participate in nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis. All amounts deferred under this plan are unfunded, unsecured obligations and are presented as a component of the Company’s compensation and benefits accrual included in accrued expenses in the accompanying Consolidated Balance Sheets (refer to Note 10). Participants may choose among alternative earnings rates for the amounts they defer, which are primarily based on investment options within the Company’s 401(k) program. Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts, which are based on the applicable earnings rates on investment options within the Company’s 401(k) program. Amounts voluntarily deferred by employees into the Company stock fund and amounts contributed to participant accounts by the Company are deemed invested in the Company’s common stock and future distributions of such contributions will be made solely in shares of Company common stock, and therefore are not reflected in the above amounts. Contingent Consideration Contingent consideration represents a cash hold back intended to be used for certain liabilities related to the Company’s acquisition of the Intraoral Scanner Business (as further discussed in Note 3). Contingent consideration was classified as Level 3 in the fair value hierarchy as the estimated fair value was measured using a probability weighted discounted cash flow model. Fair Value of Financial Instruments The carrying amounts and fair values of the Company’s financial instruments as of December 31, were as follows ($ in millions): 2022 2021 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities: Contingent consideration $ 6.0 $ 6.0 $ — $ — Interest rate swap derivative contracts $ — $ — $ 2.2 $ 2.2 Cross-currency swap derivative contracts $ — $ — $ 17.4 $ 17.4 Convertible senior notes due 2025 $ 510.0 $ 873.0 $ 432.1 $ 1,162.5 Long-term debt $ 870.7 $ 870.7 $ 883.4 $ 883.4 The fair value of long-term debt approximates the carrying value as these borrowings are based on variable market rates. The fair value of the convertible senior notes due 2025 was determined based on the quoted bid price of the convertible senior notes in an over-the-counter market on December 31, 2022 and 2021. The convertible senior notes are considered as Level 2 of the fair value hierarchy. The fair values of cash and cash equivalents, which consist primarily of money market funds, time and demand deposits, trade accounts receivable, net and trade accounts payable approximate their carrying amounts due to the short-term maturities of these instruments. Refer to Note 13 for information related to the fair value of the Company sponsored defined benefit pension plan assets. |
Pension And Other Benefit Plans
Pension And Other Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Benefit Plans | PENSION AND OTHER BENEFIT PLANS Certain of the Company’s employees participate in defined benefit pension plans and under certain of these plans, benefit accruals continue. In general, the Company’s policy is to fund these plans based on considerations relating to legal requirements, underlying asset returns, the plan’s funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates and other factors. In connection with the Company’s restructuring activities (see Note 20), the Company had a reduction in participants in certain plans, which contributed to the change in the funded status through plan settlements and curtailments. The following sets forth the funded status of the Company’s plans as of the most recent actuarial valuations using measurement dates of December 31 ($ in millions): Pension Benefits 2022 2021 Change in pension benefit obligation: Benefit obligation at beginning of year $ (129.1) $ (171.6) Service cost (5.5) (7.3) Interest cost (1.8) (1.2) Employee contributions (2.5) (3.1) Benefits and other expenses paid 3.0 3.3 Actuarial gain 27.3 13.0 Amendments, settlements and curtailments 7.7 33.2 Foreign exchange rate impact 3.4 4.6 Benefit obligation at end of year (97.5) (129.1) Change in plan assets: Fair value of plan assets at beginning of year 80.6 104.1 Actual return on plan assets (1.7) 5.8 Employer contributions 5.5 6.0 Employee contributions 2.5 3.1 Amendments and settlements (6.6) (32.8) Benefits and other expenses paid (3.1) (3.3) Foreign exchange rate impact (2.8) (2.3) Fair value of plan assets at end of year 74.4 80.6 Funded status $ (23.1) $ (48.5) Weighted average assumptions used to determine benefit obligations at date of measurement: December 31, 2022 2021 Discount rate 3.9 % 1.5 % Rate of compensation increase 2.8 % 2.2 % Components of net periodic pension cost: Year Ended December 31, ($ in millions) 2022 2021 2020 Service cost $ (5.5) $ (7.3) $ (9.7) Interest cost (1.8) (1.2) (1.6) Expected return on plan assets 2.6 3.3 3.7 Amortization of prior service credit and initial net obligation 0.3 0.4 0.4 Amortization of actuarial gain (loss) 0.1 (0.7) (1.4) Net settlement and curtailment gain (loss) 1.9 0.8 (1.4) Net periodic pension cost $ (2.4) $ (4.7) $ (10.0) The following table represents the service cost and other net periodic benefit costs of the defined benefit pension plans incurred during the years ended December 31, 2022, 2021 and 2020 ($ in millions): 2022 2021 2020 Service cost: Cost of goods sold $ (0.8) $ (0.8) $ (1.2) Selling, general and administrative (4.7) (6.5) (8.5) Other net periodic pension costs: Other income (expense) 3.1 2.6 (0.3) Total $ (2.4) $ (4.7) $ (10.0) Weighted average assumptions used to determine net periodic pension cost at date of measurement: Year Ended December 31, 2022 2021 Discount rate 2.4 % 1.0 % Expected long-term return on plan assets 3.3 % 3.2 % Rate of compensation increase 2.2 % 1.3 % The discount rate reflects the market rate on December 31 of the prior year for high-quality fixed-income investments with maturities corresponding to the Company’s benefit obligations and is subject to change each year. The rates appropriate for each plan are determined based on investment grade instruments with maturities approximately equal to the average expected benefit payout under the plan. The Company periodically updates the mortality assumptions used to estimate the projected benefit obligation. Included in accumulated other comprehensive loss as of December 31, 2022 are the following amounts that have not yet been recognized in net periodic pension cost: unrecognized prior service credits of $2.3 million ($1.8 million, net of tax) and unrecognized actuarial gain of $17.5 million ($13.6 million, net of tax). The unrecognized actuarial gain and prior service credits, net, are calculated as the difference between the actuarially determined projected benefit obligation and the value of the plan assets less accrued pension costs as of December 31, 2022. The amounts included in accumulated comprehensive income (loss) and expected to be recognized in net periodic pension costs during the year ending December 31, 2023 is a prior service credit of $0.4 million ($0.3 million, net of tax) and an actuarial gain of $1.4 million ($1.1 million, net of tax), respectively. No plan assets are expected to be returned to the Company during the year ending December 31, 2023. Selection of Expected Rate of Return on Assets The expected rate of return reflects the asset allocation of the plans and is based primarily on contractual earnings rates included in existing insurance contracts as well as on broad, publicly-traded equity and fixed-income indices and forward-looking estimates of active portfolio and investment management. Long-term rate of return on asset assumptions for the plans were determined on a plan-by-plan basis based on the composition of assets and ranged from 2.3% to 5.3% in 2022 and 1.8% to 5.3% in 2021, with a weighted average rate of return assumption of 3.3% and 3.2% in 2022 and 2021, respectively. Plan Assets Plan assets are invested in various insurance contracts, equity and debt securities as determined by the administrator of each plan. The Company has some investments that are valued using Net Asset Value (“NAV”) as a practical expedient. In addition, some of the investments valued using NAV may only allow redemption monthly, quarterly, semiannually or annually and require up to 90 days prior written notice. These investments valued using NAV primarily consist of mutual funds which allow the Company to diversify the portfolio. The fair values of the Company’s pension plan assets as of December 31, 2022, by asset category, were as follows ($ in millions): Quoted Prices in Significant Significant Total Cash and cash equivalents $ 8.4 $ — $ — $ 8.4 Insurance contracts — — 49.7 49.7 Total $ 8.4 $ — $ 49.7 $ 58.1 Investments measured at NAV (a) : Mutual funds 16.3 Total assets at fair value $ 74.4 ______________ (a) The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the total plan assets . The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended December 31, 2022 (in millions): Fair Value at January 1 Return on Plan Assets Net Purchases/(Settlements) Transfers Into/(Out of) Level 3 Fair Value at December 31 Insurance contracts $ 50.1 $ (0.1) $ (0.3) $ — $ 49.7 The fair values of the Company’s pension plan assets as of December 31, 2021, by asset category, were as follows ($ in millions): Quoted Prices in Significant Significant Total Cash and cash equivalents $ 0.3 $ — $ — $ 0.3 Insurance contracts — — 50.1 50.1 Total $ 0.3 $ — $ 50.1 $ 50.4 Investments measured at NAV (a) : Mutual funds 30.2 Total assets at fair value $ 80.6 ______________ (a) The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the total plan assets. The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended December 31, 2021 (in millions): Fair Value at January 1 Return on Plan Assets Net Purchases/(Settlements) Transfers Into/(Out of) Level 3 Fair Value at December 31 Insurance contracts $ 77.2 $ (0.6) $ (26.5) $ — $ 50.1 Insurance contracts are valued based upon the quoted prices of the underlying investments of the insurance company. Mutual funds are valued using the NAV based on the information provided by the asset fund managers, which reflects the plan’s share of the fair value of the net assets of the investment. The methods described above may produce a fair value estimate that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes the valuation methods are appropriate and consistent with the methods used by other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Expected Contributions During 2022, the Company contributed $5.5 million to its defined benefit pension plans. During 2023, the Company’s cash contribution requirements for its defined benefit pension plans are expected to be approximately $5.5 million. The following sets forth benefit payments, which reflect expected future service, as appropriate, at December 31, 2022, are expected to be paid by the plans in the periods indicated ($ in millions): 2023 $ 5.6 2024 $ 5.1 2025 $ 5.1 2026 $ 4.8 2027 $ 4.8 2028 - 2032 $ 24.1 Other Matters U.S. employees not covered by defined benefit plans are generally covered by defined contribution plans, which provide for Company funding based on a percentage of compensation. The Company provides eligible employees the opportunity to participate in defined contribution savings plans (commonly known as 401(k) plans), which permit contributions on a before-tax basis. Employees may contribute to various investment alternatives. In most of these plans, the Company matches a portion of the employees’ contributions. The Company’s contributions to these plans amounted to $19.1 million, $18.0 million and $11.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. A limited number of the Company’s subsidiaries, primarily outside of the United States, participate in multiemployer defined benefit plans that require the Company to periodically contribute funds to the plan. Multi-employer pension plans are designed to cover employees from multiple employers. These plans allow multiple employers to pool their pension resources and realize efficiencies associated with the daily administration of the plan. The risks of participating in a multiemployer plan differ from the risks of participating in a single-employer plan in the following respects: (1) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, (2) if a participating employer ceases contributing to the plan, the unfunded obligations of the plan may be required to be borne by the remaining participating employers and (3) if the Company elects to stop participating in the plan, the Company may be required to pay the plan an amount based on the unfunded status of the plan. |
Warranty
Warranty | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty | WARRANTY The Company generally accrues estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly and appropriately maintained. Warranty periods depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor and in certain instances estimated property damage. The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known. The following is a rollforward of the Company’s accrued warranty liability ($ in millions): Balance at December 31, 2021 $ 9.4 Accruals for warranties issued during the year 15.3 Settlements made (15.1) Divestiture (0.1) Effect of foreign currency translation (0.3) Balance at December 31, 2022 $ 9.2 |
Litigation And Contingencies
Litigation And Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation And Contingencies | LITIGATION AND CONTINGENCIES The Company records accruals for loss contingencies associated with legal matters when it is probable that a liability will be incurred, and the amount of the loss can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss does not meet the known or probable level but is reasonably possible, it is disclosed if deemed material and if such loss or range of loss can be reasonably estimated, the estimated loss or range of loss is disclosed. The Company’s reserves consist of specific reserves for individual claims and additional amounts for anticipated developments of these claims as well as for incurred but not yet reported claims. The specific reserves for individual known claims are quantified with the assistance of legal counsel and outside risk professionals where appropriate. In addition, outside risk professionals assist in the determination of reserves for certain incurred but not yet reported claims through evaluation of the Company’s specific loss history, actual claims reported and industry trends among statistical and other factors. The Company has determined that the liabilities associated with certain litigation matters are probable and can be reasonably estimated and has accrued $35.7 million and $38.7 million as of December 31, 2022 and 2021, respectively, which are included in accrued liabilities in the Consolidated Balance Sheets. The Company has accrued for these matters and will continue to monitor each related legal issue and adjust accruals as might be warranted based on new information and further developments in accordance with ASC 450-20-25. Amounts accrued for legal contingencies often result from a complex series of judgments about future events and uncertainties that rely heavily on estimates and assumptions including timing of related payments. The ability to make such estimates and judgments can be affected by various factors including, among other things, whether damages sought in the proceedings are unsubstantiated or indeterminate; legal discovery has not commenced or is not complete; proceedings are in early stages; matters present legal uncertainties; there are significant facts in dispute; procedural or jurisdictional issues; the uncertainty and unpredictability of the number of potential claims; or there are numerous parties involved. To the extent adverse verdicts have been rendered against the Company, the Company does not record an accrual until a loss is determined to be probable and can be reasonably estimated. In the Company's opinion, based on its examination of these matters, its experience to date and discussions with counsel, the ultimate outcome of legal proceedings, net of liabilities accrued in the Company's Consolidated Balance Sheets, is not expected to have a material adverse effect on the Company's financial position. However, the resolution of or increase in accruals for, one or more of these matters in any reporting period may have a material adverse effect on the Company’s results of operations and cash flows for that period. The Company is subject to various environmental laws and regulations both within and outside of the United States. The operations of the Company involve the use of substances regulated under environmental laws, primarily in manufacturing processes. While it is difficult to quantify the potential impact of continuing compliance with environmental protection laws or potential enforcement actions by regulatory agencies, management believes that such compliance or potential enforcement actions will not have a material impact on the Company’s financial position, results of operations, or liquidity. As of December 31, 2022, the Company had $19.0 million of guarantees consisting primarily of outstanding standby letters of credit and bank guarantees. These guarantees have been provided in connection with certain arrangements with vendors, customers, insurance providers, financing counterparties and governmental entities to secure the Company’s obligations and/or performance requirements related to specific transactions. |
Debt And Credit Facilities
Debt And Credit Facilities | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt And Credit Facilities | DEBT AND CREDIT FACILITIES The components of the Company’s debt as of December 31, were as follows, net of debt discount and debt issuance costs ($ in millions): 2022 2021 Senior term loan facility due 2024 (the “Term Loan”) $ 648.3 $ 647.3 Senior euro term loan facility due 2024 (the “Euro Term Loan”) 222.4 236.1 Convertible senior notes due 2025 510.0 432.1 Other — 0.3 Total debt 1,380.7 1,315.8 Less: current portion (510.0) (432.4) Long-term debt $ 870.7 $ 883.4 The Company’s contractual minimum principal payments are as follows ($ in millions): 2023 $ — 2024 872.7 2025 517.5 Total $ 1,390.2 Credit Agreement On September 20, 2019, the Company entered into a credit agreement (the “Credit Agreement”) with a syndicate of banks under which Envista borrowed approximately $1.3 billion, consisting of the three-year $650.0 million Term Loan and the three-year €600.0 million Euro Term Loan (together with the Term Loan, the “Term Loans”). The Credit Agreement also included the five-year, $250.0 million revolving credit facility (together with the Term Loans, the “Senior Credit Facilities”). On February 9, 2021, in connection with an amendment to the Credit Agreement, the Company repaid $472.0 million of its Euro Term Loan. On June 15, 2021, the Company entered into an amended and restated credit agreement (the “Amended Credit Agreement”) with a syndicate of banks. The Amended Credit Agreement amends and restates the Company’s Credit Agreement, originally dated September 20, 2019 (as amended by Amendment No. 1 to Credit Agreement dated as of May 6, 2020, Amendment No. 2 to Credit Agreement dated as of May 19, 2020, and Amendment No. 3 to Credit Agreement dated as of February 9, 2021). Under the Amended Credit Agreement: (a) the maturity date of the Company’s existing Term Loans has been extended to September 20, 2024, (b) the revolving credit facility has been increased from $250.0 million to $750.0 million, (c) the Company may request further increases to the revolving credit facility in an aggregate amount not to exceed $350.0 million, (d) the amount of cash and cash equivalents permitted to be netted in the definition of “Consolidated Funded Indebtedness” has been increased to up to the greater of (i) $250.0 million and (ii) 50% of Consolidated EBITDA as of the most recent measurement period, and (e) the floor on Eurocurrency rate loans applicable to the revolving credit facility and the Term Loan has been reduced to zero, in each case subject to and in accordance with the terms and conditions of the Amended Credit Agreement. The Company paid fees aggregating approximately $2.1 million in connection with the Amended Credit Agreement. The revolving credit facility includes an aggregate available borrowing capacity of $750.0 million with a $20.0 million sublimit for the issuance of standby letters of credit and can be used for working capital and other general corporate purposes. As of December 31, 2022 and December 31, 2021, there were no borrowings outstanding under the revolving credit facility. Under the Senior Credit Facilities, borrowings bear interest as follows: (1) Eurocurrency Rate Loans (as defined in the Amended Credit Agreement) bear interest at a variable rate equal to the London inter-bank offered (“LIBOR”) rate plus a margin of between 0.785% and 1.625%, depending on the Company’s Consolidated Leverage Ratio (as defined in the Amended Credit Agreement) as of the last day of the immediately preceding fiscal quarter; and (2) Base Rate Loans (as defined in the Amended Credit Agreement) bear interest at a variable rate equal to (a) the highest of (i) the Federal funds rate (as published by the Federal Reserve Bank of New York from time to time) plus 0.50%, (ii) Bank of America’s “prime rate” as publicly announced from time to time and (iii) the Eurocurrency Rate (as defined in the Amended Credit Agreement) plus 1.0%, plus (b) a margin of between 0.00% and 0.625%, depending on the Company’s Consolidated Leverage Ratio as of the last day of the immediately preceding fiscal quarter. In no event will Eurocurrency Rate Loans or Base Rate Loans bear interest at a rate lower than 0.0%. The Amended Credit Agreement provides for the use of Secured Overnight Financing Rate (“SOFR”) as a replacement rate upon a LIBOR cessation event. In addition, the Company is required to pay a per annum facility fee of between 0.09% and 0.225% depending on the Company’s Consolidated Leverage Ratio as of the last day of the immediately preceding fiscal quarter and based on the aggregate commitments under the revolving credit facility, whether drawn or not. The interest rates for borrowings under the Term Loan were 5.98% and 1.25% as of December 31, 2022 and 2021, respectively. The interest rate for borrowings under the Euro Term Loan was 3.28% and 0.95% as of December 31, 2022 and 2021, respectively. Interest is payable quarterly for the Term Loans. The Amended Credit Agreement requires the Company to maintain a Consolidated Leverage Ratio of 3.75 to 1.00 or less and includes a provision that the maximum Consolidated Leverage Ratio will be increased to 4.25 to 1.00 for the four consecutive full fiscal quarters immediately following the consummation of any acquisition by the Company or any subsidiary of the Company in which the purchase price exceeds $100.0 million. The Amended Credit Agreement also requires the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Amended Credit Agreement) of at least 3.00 to 1.00. The Amended Credit Agreement contains customary representations, warranties, conditions precedent, events of default, indemnities and affirmative and negative covenants, including covenants that, among other things, limit or restrict the Company’s and/or the Company’s subsidiaries ability, subject to certain exceptions and qualifications, to incur liens or indebtedness, merge, consolidate or sell or otherwise transfer assets, make dividends or distributions, enter into transactions with the Company’s affiliates and use proceeds of the debt financing for other than permitted uses. The Amended Credit Agreement also contains customary events of default. Upon the occurrence and during the continuance of an event of default, the lenders may declare the outstanding advances and all other obligations under the Amended Credit Agreement immediately due and payable. The Company was in compliance with all of its debt covenants as of December 31, 2022. Convertible Senior Notes (the “Notes”) On May 21, 2020, the Company issued the Notes due on June 1, 2025, unless earlier repurchased, redeemed or converted. The aggregate principal amount, which includes the initial purchasers’ exercise in full of their option to purchase an additional $67.5 million principal amount of the Notes, was $517.5 million. The net proceeds from the issuance, after deducting purchasers’ discounts and estimated offering expenses, were $502.6 million. The Company used part of the net proceeds to pay for the capped call transactions (“Capped Calls”) as further described below. The Notes accrue interest at a rate of 2.375% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020. The Notes have an initial conversion rate of 47.5862 shares of the Company’s common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $21.01 per share of the Company’s common stock and is subject to adjustment upon the occurrence of specified events. The Notes are governed by an indenture dated as of May 21, 2020 (the “Indenture”) between the Company and Wilmington Trust, National Association, as trustee. The Indenture does not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness or the issuance or repurchase of the Company’s securities by the Company. Prior to the adoption of ASU 2020-06, the Company separated the carrying amounts of the Notes and total issuance costs incurred into liability and equity components. For the Notes, the carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that did not have an associated convertible feature, while the carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Notes. Total issuance costs incurred were then allocated to the liability and equity components of the Notes based on their relative values. Due to the Company’s adoption of ASU 2020-06 on January 1, 2022, the Notes and related issuance costs incurred are no longer required to be bifurcated into separate liability and equity components. This resulted in a $75.0 million increase to the carrying value of the Notes due 2025, comprised of unamortized discount of $76.5 million and deferred debt issuance costs of $1.5 million and a decrease to additional paid-in capital of $77.8 million. Additionally, the adoption of ASU 2020-06 resulted in a $21.4 million increase to retained earnings and an $18.6 million decrease to the related net deferred tax liability associated with the reduction of unamortized debt discount and deferred debt issuance costs. The Notes are the Company’s senior, unsecured obligations and are (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the Notes; (iii) effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries. Holders of the Notes may convert their Notes at any time on or after December 2, 2024 until the close of business on the second scheduled trading day preceding the maturity date. Holders of the Notes will also have the right to convert the Notes prior to December 2, 2024, but only upon the occurrence of specified events. In December 2021, the Company made the irrevocable election to settle all Notes conversions through combination settlement, satisfying the principal amount outstanding with cash and any Notes conversion value in excess of the principal amount in cash, shares of the Company’s common stock or a combination of both. If a fundamental change occurs prior to the maturity date, holders of the Notes may require the Company to repurchase all or a portion of their Notes for cash at a repurchase price equal to 100.0% of the principal amount plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the maturity date, the Company would increase the conversion rate for a holder who elects to convert its Notes in connection with such an event in certain circumstances. As of December 31, 2022 and 2021, the stock price exceeded 130% of the conversion price of $21.01 in 20 days of the final 30 trading days ended December 31, 2022 and 2021, which satisfied one of the conditions permitting early conversion by holders of the Notes, therefore, the Notes are classified as short-term debt. The Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after June 1, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date, but only if the last reported sale price per share of the Company’s common stock exceeds 130.0% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any Note for redemption will constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption. The following table sets forth total interest expense recognized related to the Notes ($ in millions): Year Ended December 31, 2022 2021 Contractual interest expense $ 12.3 $ 12.3 Amortization of debt issuance costs 2.9 1.9 Amortization of debt discount — 19.0 Total interest expense $ 15.2 $ 33.2 For the years ended December 31, 2022 and 2021, the debt discount and debt issuance costs were amortized using an annual effective interest rate of 3.0% and 7.3%, respectively, to interest expense over the term of the Notes. As of December 31, 2022 and 2021, the if-converted value of the Notes exceeded the outstanding principal amount by $311.7 million and $592.1 million, respectively. Debt Discount and Debt Issuance Costs As of December 31, 2022 and 2021, remaining unamortized debt discount and debt issuance costs for the Term Loan, Euro Term Loan and Convertible Senior Notes are as follows ($ in millions): 2022 2021 Debt Issuance Costs Debt Discount Debt Issuance Costs Debt Discount Convertible Senior Notes $ 7.5 $ — $ 8.9 $ 76.5 Term Loan 1.7 — 2.7 — Euro Term Loan 0.3 — 0.5 — $ 9.5 $ — $ 12.1 $ 76.5 The above unamortized debt discount and debt issuance costs have been netted against their respective aggregate principal amounts of the related debt and are being amortized to interest expense over the term of the respective debt. Capped Call Transactions In connection with the offering of the Notes, the Company entered into Capped Calls with certain counterparties. The Capped Calls each have an initial strike price of approximately $21.01 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $23.79 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, 2.9 million shares of the Company's common stock. The Capped Calls are generally intended to reduce or offset the potential dilution from shares of common stock issued upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. As the Capped Call transactions are considered indexed to the Company's own stock and are considered equity classified, they are recorded in equity and are not accounted for as derivatives. The cost of $20.7 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. |
Stock Transactions And Stock-Ba
Stock Transactions And Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Transactions And Stock-Based Compensation | STOCK TRANSACTIONS AND STOCK-BASED COMPENSATION Capital Stock Under the Company’s amended and restated certificate of incorporation, the Company’s authorized capital stock consists of 500.0 million shares of common stock with a par value of $0.01 per share and 15.0 million shares of preferred stock with a par value of $0.01 per share. No preferred shares were issued or outstanding as of December 31, 2022 and 2021. Each share of the Company’s common stock entitles the holder to one vote on all matters to be voted upon by common stockholders. The Company’s Board of Directors (the “Board”) is authorized to issue shares of preferred stock in one or more series and has discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. The Board’s authority to issue preferred stock with voting rights or conversion rights that, if exercised, could adversely affect the voting power of the holders of common stock, could potentially discourage attempts by third parties to obtain control of the Company through certain types of takeover practices. The following table summarizes the Company’s stock activity (shares in millions): Year Ended December 31, 2022 2021 2020 Common stock - shares issued: Balance, beginning of period 162.0 160.2 158.7 Issuance of common stock 1.7 1.8 1.5 Balance, end of period 163.7 162.0 160.2 Stock-Based Compensation The Company adopted the 2019 Omnibus Incentive Plan (the “Stock Plan”) that provides for the grant of stock appreciation rights, restricted stock units (“RSUs”), and performance stock units (‘PSUs”) (collectively, “Stock Awards”), as well as stock options (“Options”). A total of 21.0 million shares of the Company’s common stock have been authorized for issuance under the Stock Plan. Under the Stock Plan, stock-based grants are awarded at a price equal to the fair market value at the date of grant based upon the closing price on that date. Options and Stock Awards generally vest over a period of three RSUs issued under the Stock Plan provide for the issuance of a share of the Company’s common stock at no cost to the holder. The RSUs granted to employees provide for time-based vesting, generally over a three set at the time of grant. The Company accounts for stock-based compensation by measuring all RSUs, PSUs and Options at fair value as of the grant date. The Company recognizes the compensation expense over the requisite service period (which is generally the vesting period but may be shorter than the vesting period if the employee becomes retirement eligible before the end of the vesting period). The fair value for RSU awards is calculated using the closing price of the Company’s common stock on the date of grant. The fair value of the Options granted is calculated using a Black-Scholes option pricing model (“Black-Scholes”). On December 23, 2021 and January 21, 2022, the Company entered into and finalized, respectively, an RSU agreement with Pacific Dental Services (“PDS”) which awarded PDS RSUs with a fair value of $12.5 million, or 273,522 RSUs, based on the Company’s stock price on December 23, 2021. The RSUs vest over approximately three years and contain performance milestones. All of the 273,522 RSUs remained unvested as of December 31, 2022. The following summarizes the assumptions used in the Black-Scholes model to value Options granted during the years ended December 31: 2022 2021 2020 Risk-free interest rate 1.9 – 3.1% 1.0 – 1.3% 0.4 – 1.2% Weighted average volatility 33.6 % 25.3 % 25.3 % Dividend yield — % — % — % Expected years until exercise 6.0 6.0 6.0 The risk-free rate of interest for periods within the contractual life of the awards is based on a zero-coupon U.S. government instrument with a maturity period that approximates the award’s expected term. The weighted average volatility used in the Black-Scholes model to value Options was estimated based on an average historical stock price volatility of a peer group of companies. The dividend yield was 0.0% as the Company does not offer a dividend. To estimate the option exercise timing used in the valuation model, in addition to considering the vesting period and contractual term of the Option, the Company analyzes and considers actual historical exercise experience for previously granted awards. The amount of stock-based compensation expense recognized during a period is also based on the portion of the awards that are ultimately expected to vest. The Company estimates pre-vesting forfeitures at the time of grant by analyzing historical data and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company has estimated an annual forfeiture rate of 6.0% for the years ended December 31, 2022, 2021 and 2020. The following summarizes the components of the Company’s stock-based compensation expense for the years ended December 31 ($ in millions): 2022 2021 2020 RSUs / PSUs $ 19.3 $ 15.5 $ 13.3 Options 11.2 12.2 8.9 Total stock-based compensation expense $ 30.5 $ 27.7 $ 22.2 The Company’s stock-based compensation is primarily recognized as a component of selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. As of December 31, 2022, $43.6 million of total unrecognized compensation cost related to Options and RSUs/PSUs is expected to be recognized over a weighted average period of approximately two years. The following summarizes the Company’s Option activity (in millions; except price per share and numbers of years): Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of December 31, 2019 8.0 $ 17.81 Granted 2.2 $ 26.14 Exercised (1.0) $ 14.01 Cancelled/forfeited (1.1) $ 21.17 Outstanding as of December 31, 2020 8.1 $ 20.08 Granted 1.7 $ 38.15 Exercised (1.3) $ 15.74 Cancelled/forfeited (0.6) $ 26.74 Outstanding as of December 31, 2021 7.9 $ 24.16 Granted 0.5 $ 48.23 Exercised (1.2) $ 18.61 Cancelled/forfeited (0.7) $ 30.29 Outstanding as of December 31, 2022 6.5 $ 26.24 6.3 $ 59.7 Vested and expected to vest as of December 31, 2022 6.3 $ 26.09 6.3 $ 58.8 Vested as of December 31, 2022 3.2 $ 22.01 5.4 $ 39.3 Options outstanding as of December 31, 2022 are summarized below (in millions; except price per share and numbers of years): Outstanding Exercisable Exercise Price Number of Stock Options Average Average Number of Stock Options Average $9.74 to 12.65 0.4 $ 12.00 2.4 0.4 $ 12.00 $12.66 to 19.22 1.6 $ 17.95 4.8 1.3 $ 17.66 $19.23 to 26.50 2.7 $ 24.15 6.5 1.0 $ 24.10 $26.51 to $41.95 1.4 $ 36.74 7.9 0.5 $ 35.85 $41.96 to 48.52 0.4 $ 48.01 8.9 — $ 43.30 The intrinsic value of Options is calculated as the amount by which the market price of the Company’s stock exceeds the exercise price of the Option. The aggregate intrinsic value of Options exercised during the years ended December 31, 2022, 2021 and 2020 was $31 million, $33 million and $12 million, respectively. The following summarizes information on unvested RSU and PSU activity related to the Company’s employees and non-employee directors (in millions; except weighted average grant-date fair value): Number of Weighted Average Unvested at December 31, 2019 2.1 $ 19.60 Granted 0.7 $ 25.76 Vested (0.5) $ 17.87 Forfeited (0.4) $ 20.98 Unvested at December 31, 2020 1.9 $ 22.01 Granted 0.5 $ 38.76 Vested (0.5) $ 20.34 Forfeited (0.2) $ 26.54 Unvested at December 31, 2021 1.7 $ 26.82 Granted 0.6 $ 47.80 Vested (0.5) $ 24.85 Forfeited (0.3) $ 33.62 Unvested at December 31, 2022 1.5 $ 34.85 The Company recognizes tax benefits for stock compensation in certain jurisdictions, primarily the United States, where tax deductions are based on market value at exercise or release and may exceed the grant-date value. The Company realized such tax benefits of $4 million, $4 million and $1 million in 2022, 2021 and 2020, respectively, related to the exercise of Options and $1 million in each of the years ended December 31, 2022, 2021 and 2020, related to the vesting and release of RSUs and PSUs. For all periods presented, the tax benefits were included as a component of income tax expense and as an operating cash inflow in the accompanying Consolidated Financial Statements. In connection with the exercise of certain Options and the vesting of RSUs and PSUs, a number of shares sufficient to fund statutory minimum tax withholding requirements has been withheld from the total shares issued or released to the award holders (though under the terms of the applicable plan, the shares are considered to have been issued and are not added back to the pool of shares available for grant). During the year ended December 31, 2022, 192.4 thousand shares with an aggregate value of $9 million were withheld to satisfy the requirement. During the year ended December 31, 2021, 181.7 thousand shares with an aggregate value of $7 million were withheld to satisfy the requirement. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component are summarized below ($ in millions): Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Unrealized Pension Costs Total Accumulated Other Comprehensive Loss Balance, December 31, 2019 $ (116.4) $ 0.1 $ (27.9) $ (144.2) Other comprehensive income (loss) before reclassifications: Increase (decrease) 26.0 (8.4) 3.9 21.5 Income tax impact 27.9 2.0 (1.1) 28.8 Other comprehensive income (loss) before reclassifications, net of income taxes 53.9 (6.4) 2.8 50.3 Amounts reclassified from accumulated other comprehensive (loss) income: Increase — — 2.9 2.9 Income tax impact — — (0.8) (0.8) Amounts reclassified from accumulated other comprehensive (loss) income, net of income taxes — — 2.1 2.1 Net current period other comprehensive income (loss), net of income taxes 53.9 (6.4) 4.9 52.4 Balance, December 31, 2020 $ (62.5) $ (6.3) $ (23.0) $ (91.8) Other comprehensive loss before reclassifications: (Decrease) increase (72.7) 6.1 21.9 (44.7) Income tax impact (17.0) (1.5) (4.7) (23.2) Other comprehensive (loss) income before reclassifications, net of income taxes (89.7) 4.6 17.2 (67.9) Amounts reclassified from accumulated other comprehensive loss income: Increase 15.9 — 5.0 20.9 Income tax impact (3.3) — (1.4) (4.7) Amounts reclassified from accumulated other comprehensive loss, net of income taxes 12.6 — 3.6 16.2 Net current period other comprehensive (loss) income, net of income taxes (77.1) 4.6 20.8 (51.7) Balance, December 31, 2021 $ (139.6) $ (1.7) $ (2.2) $ (143.5) Other comprehensive loss before reclassifications: (Decrease) increase (80.5) 2.2 24.6 (53.7) Income tax impact (20.4) (0.5) (5.2) (26.1) Other comprehensive (loss) income before reclassifications, net of income taxes (100.9) 1.7 19.4 (79.8) Amounts reclassified from accumulated other comprehensive loss income: Increase — — (2.3) (2.3) Income tax impact — — 0.5 0.5 Amounts reclassified from accumulated other comprehensive loss, net of income taxes — — (1.8) (1.8) Net current period other comprehensive (loss) income, net of income taxes (100.9) 1.7 17.6 (81.6) Balance, December 31, 2022 $ (240.5) $ — $ 15.4 $ (225.1) |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following table presents the Company’s revenues disaggregated by geographical region for the years ended December 31, 2022 and 2021 ($ in millions). Sales taxes and other usage-based taxes collected from customers are excluded from revenues. The Company has historically defined emerging markets as developing markets of the world, which prior to the COVID-19 pandemic, experienced extended periods of accelerated growth in gross domestic product and infrastructure, including Eastern Europe, the Middle East, Africa, Latin America and Asia (with the exception of Japan and Australia). The Company defines developed markets as all markets of the world that are not emerging markets. Year Ended December 31, 2022 Specialty Products & Technologies Equipment & Consumables Total Geographical region: North America $ 711.1 $ 655.3 $ 1,366.4 Western Europe 388.9 121.1 510.0 Other developed markets 91.0 38.6 129.6 Emerging markets 407.6 155.5 563.1 Total $ 1,598.6 $ 970.5 $ 2,569.1 Year Ended December 31, 2021 Specialty Products & Technologies Equipment & Consumables Total Geographical region: North America $ 668.9 $ 659.3 $ 1,328.2 Western Europe 366.6 125.9 492.5 Other developed markets 98.2 41.2 139.4 Emerging markets 374.1 174.7 548.8 Total $ 1,507.8 $ 1,001.1 $ 2,508.9 Sales by Major Product Group: Year Ended December 31, ($ in millions) 2022 2021 2020 Consumables $ 2,147.5 $ 2,067.9 $ 1,590.7 Equipment 421.6 441.0 338.4 Total $ 2,569.1 $ 2,508.9 $ 1,929.1 Consumable products include implants, regenerative products, prosthetics, orthodontic brackets, aligners and lab products from our Specialty Products & Technologies business segment and traditional consumables such as bonding agents and cements, impression materials, infection prevention products and restorative products from the Company’s Equipment & Consumables business segment. The Company’s equipment products include digital imaging systems, software and other visualization and magnification systems. Remaining Performance Obligations ASC 606 requires disclosure of remaining performance obligations that represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include noncancelable purchase orders, extended warranty and service agreements and do not include revenue from contracts with customers with an original term of one year or less. As of December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $52.7 million and the Company expects to recognize revenue on the majority of this amount over the next 12 months. Contract Liabilities The Company often receives cash payments from customers in advance of the Company’s performance resulting in contract liabilities. These contract liabilities are classified as either current or long-term in the Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue. As of December 31, 2022 and 2021, the contract liabilities were $87.5 million and $65.2 million, respectively, and are included within accrued expenses and other liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheets. The increase in the contract liability balance during the years ended December 31, 2022 and 2021, is primarily due to cash payments received in advance of satisfying performance obligations, partially offset by revenue recognized during the period that was included in the contract liability balance at December 31, 2021 and 2020, respectively. Revenue recognized during the years ended December 31, 2022 and 2021 that was included in the contract liability balance at December 31, 2021 and December 31, 2020 was $52.8 million and $38.4 million, respectively. Significant Customers |
Restructuring Activities And Re
Restructuring Activities And Related Impairments | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities And Related Impairments | RESTRUCTURING ACTIVITIES AND RELATED IMPAIRMENTS Restructuring Activities The Company’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, take advantage of available capacity and resources, and ultimately achieve net cost reductions. These activities generally relate to the realignment of existing manufacturing capacity and closure of facilities and other exit or disposal activities, as it relates to executing the Company’s strategy, pursuant to significant restructuring programs. The related liability which is included in accrued liabilities in the Consolidated Balance Sheets is summarized below ($ in millions): Employee Severance Facility Exit Total Balance, December 31, 2021 $ 21.4 $ 0.5 21.9 Costs incurred 20.8 5.7 26.5 Paid/settled (24.0) (5.5) (29.5) Balance, December 31, 2022 $ 18.2 $ 0.7 $ 18.9 Restructuring related charges recorded for the years ended December 31 by segment were as follows ($ in millions): 2022 2021 2020 Specialty Products & Technologies $ 14.7 $ 25.2 $ 43.8 Equipment & Consumables 19.7 32.1 34.6 Other 3.2 6.3 6.0 Total $ 37.6 $ 63.6 $ 84.4 The restructuring related charges incurred during the years ended December 31, are reflected in the following captions in the accompanying Consolidated Statements of Operations ($ in millions): 2022 2021 2020 Cost of sales $ 13.6 $ 35.9 $ 18.3 Selling, general and administrative expenses 24.0 27.7 66.1 Total $ 37.6 $ 63.6 $ 84.4 Impairments During the year ended December 31, 2022 and 2021, the Company made the decision to consolidate certain facilities in an effort to improve its cost structure. For the year ended December 31, 2022, the Company recognized a non-cash loss of $11.1 million with the majority of this loss consisting of $4.8 million related to the impairment of certain fixed assets and leases, which are included in selling, general and administrative expense and cost of sales and $4.7 million of inventory write-offs, which is included in cost of sales. For the year ended December 31, 2021, the Company recognized a non-cash loss of $29.8 million with the majority of this loss consisting of $19.0 million related to the impairment of certain fixed assets and leases, which are included in selling, general and administrative expense and cost of sales and $10.8 million of inventory write-offs, which is included in cost of sales. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income (loss) before income taxes for the years ended December 31 were as follows ($ in millions): 2022 2021 2020 United States $ 21.9 $ 35.0 $ (64.3) International 262.0 219.5 44.3 Total $ 283.9 $ 254.5 $ (20.0) The provision (benefit) for income taxes for the years ended December 31 were as follows ($ in millions): 2022 2021 2020 Current: Federal U.S. $ 42.5 $ 17.7 $ 13.1 Non-U.S. 22.4 26.9 13.5 State and local 8.6 4.4 0.9 Deferred: Federal U.S. (31.3) (2.2) (13.1) Non-U.S. 11.3 (57.5) (72.7) State and local (7.6) 1.7 (4.2) Income tax provision (benefit) $ 45.9 $ (9.0) $ (62.5) Deferred tax assets and deferred tax liabilities are classified as long-term and are included in other long-term assets and other long-term liabilities, respectively, in the accompanying Consolidated Balance Sheets. Significant components of deferred tax assets and liabilities as of December 31 were as follows ($ in millions): 2022 2021 Deferred tax assets: Inventories $ 15.4 $ 17.4 Pension benefits 6.2 11.5 Other accruals and prepayments 45.3 54.3 Lease liabilities 35.5 34.2 Stock-based compensation expense 7.5 6.8 Interest expense 36.0 8.7 Capitalized research expenses 15.1 3.8 Tax credit and loss carryforwards 38.2 117.3 Valuation allowances (38.7) (90.0) Total deferred tax asset 160.5 164.0 Deferred tax liabilities: Property, plant and equipment (5.7) (9.6) Unrealized gains and losses (6.2) (6.5) Right-of-use assets (31.5) (30.3) Goodwill and other intangible assets (92.2) (192.3) Total deferred tax liability (135.6) (238.7) Net deferred tax asset (liability) $ 24.9 $ (74.7) Deferred taxes associated with U.S. entities consist of net deferred tax liabilities of $15.1 million and $133.0 million as of December 31, 2022 and 2021, respectively. Deferred taxes associated with non-U.S. entities consist of net deferred tax assets of $40.0 million and $58.5 million as of December 31, 2022 and 2021, respectively. During 2022, the Company’s valuation allowance decreased by $51.3 million primarily due to a corresponding expiration of certain foreign net operating losses. The Company’s intent is to permanently reinvest substantially all funds outside of the United States and current plans do not demonstrate a need to repatriate the cash to fund U.S. operations. However, if these funds were repatriated, they would likely not be subject to United States federal income tax under the previously taxed income or the dividend exemption rules. The Company would likely be required to accrue and pay United States state and local taxes and withholding taxes payable to various countries. It is not practicable to estimate the tax impact of the reversal of the outside basis difference, or the repatriation of cash due to the complexity of its hypothetical calculation. The 2022 decrease in the deferred tax liability for goodwill and other intangible assets included an income tax benefit of approximately $100.2 million related primarily to the acquisition of amortizable deferred tax assets associated with the Intraoral Scanner Business acquisition partially offset with deferred tax liabilities established in connection with the Osteogenics acquisition. Current tax law in the United States imposes tax on U.S. stockholders for global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The Company is required to make an accounting policy election of either: (1) treating taxes due on future amounts included in the U.S. taxable income related to GILTI as a current period tax expense when incurred (“the period cost method”); or (2) factoring such amounts into the Company’s measurement of its deferred tax its deferred tax expense (the “deferred method”). In 2018, the Company elected the period cost method for its accounting for GILTI. The effective income tax rate for the years ended December 31 varies from the U.S. statutory federal income tax rate as follows: Percentage of Pretax Income 2022 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax rate resulting from: State income taxes (net of federal income tax benefit) 0.3 1.2 17.0 Impact of foreign operations (5.0) (6.4) 80.4 Foreign-Derived Intangible Income (“FDII”) (0.7) — — Subpart F and GILTI, net of foreign tax credits 6.7 6.4 (72.4) Change in uncertain tax positions (0.5) — 3.4 Research and experimentation credits and other (1.6) (1.6) 13.2 Permanent differences and other (0.9) 2.7 (20.3) Excess tax benefit from stock-based compensation (1.6) (1.9) 11.6 Valuation allowance release on certain Swiss NOLs — (8.1) — Impact of step-up of Swiss assets (1.5) (16.8) 258.6 Effective income tax rate 16.2 % (3.5) % 312.5 % The Company realized tax benefits of $7.2 million, $6.7 million, and $4.2 million in 2022, 2021 and 2020 respectively, for tax deductions attributable to stock-based compensation, of which, the excess tax benefit over the amount recorded for financial reporting purposes was $4.6 million, $4.8 million and $2.3 million in 2022, 2021 and 2020, respectively. As required by ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), the excess tax benefits for the years ended December 31, 2022, 2021 and 2020 have been included in the provision for income taxes. The Company evaluates the future realizability of tax credits and loss carryforwards considering the anticipated future earnings of the Company’s subsidiaries as well as tax planning strategies in the associated jurisdictions. Included in deferred income taxes as of December 31, 2022 are tax benefits for U.S. and non-U.S. net operating loss carryforwards totaling $35.5 million ($29.1 million of which the Company does not expect to realize and has corresponding valuation allowances). Certain of the losses can be carried forward indefinitely and others can be carried forward to various dates from 2023 through 2042. As of December 31, 2022, gross unrecognized tax benefits totaled $6.6 million ($9.2 million, including $2.6 million associated with potential interest and penalties). As of December 31, 2021, gross unrecognized tax benefits totaled $5.7 million ($7.6 million, including $1.9 million associated with potential interest and penalties). The Company recognized $0.6 million, $(0.1) million and $0.0 million in potential interest and penalties associated with uncertain tax positions during 2022, 2021 and 2020, respectively. To the extent unrecognized tax benefits (including interest and penalties) are recognized with respect to uncertain tax positions, the tax expense in future periods would be reduced by $9.2 million based upon the tax positions as of December 31, 2022. The Company recognized interest and penalties related to unrecognized tax benefits within income taxes in the accompanying Consolidated Statements of Operations. Unrecognized tax benefits and associated accrued interest and penalties are included in taxes, income and other accrued expenses as detailed in Note 10. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties, is as follows ($ in millions): 2022 2021 2020 Unrecognized tax benefits, beginning of year $ 5.7 $ 7.1 $ 9.1 Additions based on tax positions related to the current year 0.3 0.3 0.3 Additions for tax positions of prior years 4.2 — 0.3 Reductions for tax positions of prior years — (0.3) (1.7) Lapse of statute of limitations (2.3) (1.0) (1.0) Settlements (1.1) (0.4) — Effect of foreign currency translation (0.2) — 0.1 Unrecognized tax benefits, end of year $ 6.6 $ 5.7 $ 7.1 The Company is routinely examined by various domestic and international taxing authorities and operations in certain U.S. states and foreign jurisdictions remain subject to routine examination for tax years beginning with 2009. The Company estimates that it is reasonably possible that the amount of unrecognized tax benefits may be reduced by approximately $2.7 million within twelve months through resolution of worldwide tax matters, payments of tax audit settlements and/or statute of limitations expirations. The Company operates in various non-U.S. tax jurisdictions where “tax holiday” income tax incentives have been granted for a specific period. These tax benefits are not material to the Company’s financial statements. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Earnings per share is calculated by dividing the applicable income by the weighted average number of shares of common stock outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential shares outstanding during the period using the treasury stock method. Dilutive potential common shares include employee equity options, non-vested shares and similar instruments granted by the Company and the assumed conversion impact of the Notes. The Company will settle any Notes conversions through a combination settlement by satisfying the principal amount outstanding with cash and any Notes conversion value in excess of the principal amount in cash or shares of the Company’s common stock or any combination thereof. As such, the Company uses the treasury stock method for the assumed conversion of the Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share. As the Company will settle the principal amount of the Notes in cash upon conversion, the Notes do not have an impact on the Company's diluted earnings per share until the average share price of the Company’s common stock exceeds the conversion price of $21.01 per share in any applicable period. See the computation of earnings per share below for the dilutive impact of the Notes for the years ended December 31, 2022, 2021 and 2020. In connection with the offering of the Notes, the Company entered into Capped Calls (see further discussion in Note 16), which are intended to reduce or offset the potential dilution from shares of common stock issued upon conversion of the Notes. However, this impact is not included when calculating potentially dilutive shares since their effect is anti-dilutive. The Capped Calls will mitigate dilution from the conversion of the Notes up to the Company’s common stock price of $23.79. If the Notes are converted at a price higher than $23.79 per share, the Capped Calls will no longer mitigate dilution from the conversion of the Notes. The table below presents the computation of basic and diluted earnings per share ($ and shares in millions, except per share amounts): Year Ended December 31, 2022 2021 2020 Numerator: Income from continuing operations, net of tax $ 238.0 $ 263.5 42.5 Income (loss) from discontinued operations, net of tax $ 5.1 $ 77.0 $ (9.2) Net income $ 243.1 $ 340.5 $ 33.3 Denominator: Weighted-average common shares outstanding used in basic earnings (loss) per share 162.9 161.2 159.6 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive restricted stock units 3.2 4.4 2.2 Assumed conversion of the Notes 11.5 12.0 2.3 Weighted average common shares outstanding used in diluted earnings (loss) per share 177.6 177.6 164.1 Earnings per share: Earnings from continuing operations - basic $ 1.46 $ 1.63 $ 0.27 Earnings from continuing operations - diluted $ 1.34 $ 1.48 $ 0.26 Earnings (loss) from discontinued operations - basic $ 0.03 $ 0.48 $ (0.06) Earnings (loss) from discontinued operations - diluted $ 0.03 $ 0.43 $ (0.06) Earnings - basic $ 1.49 $ 2.11 $ 0.21 Earnings - diluted $ 1.37 $ 1.92 * $ 0.20 * Earnings per share is computed independently for earnings per share from continuing operations and earnings per share from discontinued operations. The sum of earnings per share from continuing operations and earnings per share from discontinued operations does not equal earnings per share due to rounding. The following table presents the number of outstanding securities not included in the computation of diluted income per share, because their effect was anti-dilutive (in millions): Year Ended December 31, 2022 2021 2020 Stock-based awards 1.5 1.2 4.1 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company operates and reports its results in two separate business segments, the Specialty Products & Technologies and Equipment & Consumables segments. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. Operating profit represents total revenues less operating expenses, excluding nonoperating income (expense), interest expense and income taxes. Operating profit amounts in the Other segment consist of unallocated corporate costs and other costs not considered part of management’s evaluation of reportable segment operating performance. The identifiable assets by segment are those used in each segment’s operations. Inter-segment amounts are not significant and are eliminated to arrive at combined totals. The Company’s Specialty Products & Technologies products include implants, regenerative products, prosthetics, orthodontic brackets, aligners and lab products. The Company’s Equipment & Consumables products include traditional consumables such as bonding agents and cements, impression materials, infection prevention products and restorative products, while the Company’s equipment products include digital imaging systems, software and other visualization and magnification systems. On December 31, 2021, the Company completed the sale of its KaVo Treatment Unit and Instrument Business, which is part of the Company’s Equipment & Consumables segment. The previously reported amounts for the KaVo Treatment Unit and Instrument Business have been reclassified to discontinued operations for all periods presented. All segment information and descriptions exclude the KaVo Treatment Unit and Instrument Business. Refer to Note 4 for more information on the Company’s discontinued operations. Detailed segment data as of and for the years ended December 31 is as follows ($ in millions): 2022 2021 2020 Sales: Specialty Products & Technologies $ 1,598.6 $ 1,507.8 $ 1,117.3 Equipment & Consumables 970.5 1,001.1 811.8 Total $ 2,569.1 $ 2,508.9 $ 1,929.1 Operating profit and reconciliation to income (loss) before taxes: Specialty Products & Technologies $ 268.6 $ 272.3 $ 65.8 Equipment & Consumables 172.4 153.8 53.6 Other (121.8) (119.9) (75.9) Operating profit 319.2 306.2 43.5 Nonoperating income (expense): Other income (expense) 3.1 2.4 (1.0) Interest expense, net (38.4) (54.1) (62.5) Income (loss) before taxes $ 283.9 $ 254.5 $ (20.0) Depreciation and amortization: Specialty Products & Technologies $ 80.7 $ 84.0 $ 80.6 Equipment & Consumables 54.6 31.4 38.7 Other 2.5 2.4 2.4 Total $ 137.8 $ 117.8 $ 121.7 Capital expenditures, gross: Specialty Products & Technologies $ 48.8 $ 37.2 $ 36.4 Equipment & Consumables 20.6 10.6 5.8 Other 2.7 1.3 1.7 Total $ 72.1 $ 49.1 $ 43.9 Identifiable assets: December 31, 2022 December 31, 2021 Specialty Products & Technologies $ 3,475.7 $ 3,498.2 Equipment & Consumables 2,455.3 1,946.1 Held for sale — 12.2 Other 656.0 1,117.7 Total $ 6,587.0 $ 6,574.2 Operations in Geographical Areas: Year Ended December 31, ($ in millions) 2022 2021 2020 Sales: United States $ 1,261.9 $ 1,223.4 $ 960.1 China 222.2 236.7 198.2 All other (each country individually less than 5% of total sales) 1,085.0 1,048.8 770.8 Total $ 2,569.1 $ 2,508.9 $ 1,929.1 Property, plant and equipment, net: December 31, 2022 December 31, 2021 United States $ 183.4 $ 157.1 Sweden 41.4 49.0 Mexico 15.2 8.8 All other (each country individually less than 5% of total long-lived assets) 53.6 49.2 Total $ 293.6 $ 264.1 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - of Valuation and Qualifying Accounts | Classification Balance at Beginning of Period (a) Charged to Impact of Write Offs, Recoveries Balance at End of Period (a) Year ended December 31, 2022: Allowances deducted from asset account — — — — — — Allowance for credit losses $ 20.7 $ 4.8 $ (0.8) $ (4.1) $ (4.4) $ 16.2 Year ended December 31, 2021: Allowances deducted from asset account — — — — — — Allowance for credit losses $ 30.5 $ 4.7 $ (1.5) $ (7.3) $ (5.7) $ 20.7 Year ended December 31, 2020: Allowances deducted from asset account — — — — — — Allowance for credit losses $ 18.7 $ 19.2 $ 0.3 $ (7.7) $ — $ 30.5 ______________ (a) Amounts include allowance for credit losses classified as current. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounting Principles | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). As discussed in Note 4, Discontinued Operations, on December 31, 2021, the Company sold its KaVo dental treatment unit and instrument business (the "KaVo Treatment Unit and Instrument Business"), which was part of the Company’s Equipment and Consumables segment. The previously reported amounts for the KaVo Treatment Unit and Instrument Business have been reclassified to discontinued operations for all periods presented. All segment information and descriptions exclude the KaVo Treatment Unit and Instrument Business. Accounting Principles The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. The Consolidated Financial Statements also reflect the impact of noncontrolling interests. Noncontrolling interests do not have a significant impact on the Company’s consolidated results of operations, therefore income attributable to noncontrolling interests are not presented separately in the Company’s Consolidated Statements of Operations. Income attributable to noncontrolling interests have been reflected in selling, general and administrative expenses and were insignificant in all periods presented. Reclassifications of certain prior year amounts have been made to conform to the current year presentation. |
Use of Estimates | Use of EstimatesThe preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. The Company bases these estimates on historical experience, the current economic environment and on various other assumptions that are believed to be reasonable under the circumstances. However, uncertainties associated with these estimates exist and actual results may differ materially from these estimates. |
Acquisitions | Acquisitions The Company continually evaluates potential acquisitions that either strategically fit with the Company’s existing portfolio or expand the Company’s portfolio into new and attractive business areas. Among other things, goodwill arises because the purchase prices for these businesses reflect a number of factors including the future earnings and cash flow potential of these businesses, the multiple to earnings, cash flow and other factors at which similar businesses have been purchased by other acquirers, the competitive nature of the processes by which the Company acquired the businesses, avoidance of the time and costs which would be required (and the associated risks that would be encountered) to enhance the Company’s existing product offerings to key target markets and enter into new and profitable businesses and the complementary strategic fit and resulting synergies these businesses bring to existing operations. We account for acquisitions under Accounting Standards Codification (“ASC“) 805 Business Combinations and use the acquisition method of accounting. The consideration transferred for the acquisition of a subsidiary comprises (i) fair values of the assets transferred; (ii) liabilities assumed of the acquired business; and (iii) fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Company makes an initial allocation of the purchase price at the date of acquisition based upon its estimation of the fair value of the acquired assets and assumed liabilities. The Company obtains the information used to estimate the fair values during due diligence and through other sources. In the months after closing, up to 12 months, as the Company obtains additional information that existed at the acquisition date about these assets and liabilities, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Only items that existed as of the acquisition date are considered for subsequent adjustment. The Company makes the appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required. |
Cash and Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. |
Accounts Receivable and Allowances for Credit Losses | Accounts Receivable and Allowances for Credit Losses All trade accounts receivable are reported on the accompanying Consolidated Balance Sheets adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from the Company’s trade accounts receivable portfolio. Determination of the allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, therefore, net income. The Company regularly performs detailed reviews of its portfolios to determine if an impairment has occurred and evaluates the collectability of receivables based on a combination of various financial and qualitative factors that may affect customers’ ability to pay, including customers’ financial condition, debt-servicing ability, past payment experience and credit bureau information and forecasts. In circumstances where the Company is aware of a |
Inventory Valuation | Inventory Valuation Inventories include the costs of material, labor and overhead. Inventories are stated at the lower of cost or net realizable value primarily using the first-in, first-out method. Market value for raw materials is based on replacement costs and for other inventory classifications is based on net realizable value. The Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume. Based on this evaluation, provisions are made to write inventory down to its net realizable value. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost. The provision for depreciation has been computed principally by the straight-line method based on the estimated useful lives of the depreciable assets as follows: Category Useful Life Buildings 30 years Leased assets and leasehold improvements Amortized over the lesser of the economic life of the asset or the term of the lease Machinery, equipment and other assets 3 – 10 years |
Leases | LeasesThe Company determines if an arrangement is a lease at inception and evaluates each lease agreement to determine whether the lease is an operating or finance lease. For leases where the Company is the lessee, right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also consists of any prepaid lease payments, lease incentives received, costs which will be incurred in exiting a lease and the amount of any asset or liability recognized on business combinations relating to favorable or unfavorable lease terms. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, utilities, inflation and/or changes in other indexes. |
Investments | InvestmentsInvestments over which the Company has a significant influence but not a controlling interest, are accounted for using the equity method of accounting which requires the Company to record its initial investment at cost and adjust the balance each period for the Company’s share of the investee’s income or loss and dividends paid. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe Company’s financial instruments consist primarily of cash and cash equivalents, trade accounts receivable, nonqualified deferred compensation plans, contingent consideration, derivatives, trade accounts payable and long-term debt. Due to their short-term nature, the carrying values for cash and cash equivalents, trade accounts receivable and trade accounts payable approximate fair value. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets result from the Company’s acquisition of existing businesses. In accordance with accounting standards related to business combinations, goodwill is not amortized; however, certain finite-lived identifiable intangible assets, primarily customer relationships and acquired technology, are amortized over their estimated useful lives. Goodwill and indefinite-lived intangible assets are reviewed for impairment annually in the fourth quarter of each fiscal year or whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. The Company first assessed qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount or performed a quantitative impairment test. When tested quantitatively, the Company uses a combination of techniques, including an income approach and a market-based approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In making this assessment, management relies on a number of factors, including expected future operating results, business plans, economic projections, anticipated future cash flows, business trends and the Company’s market capitalization. The Company’s reporting units are the financial components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. The Company did not record any impairment loss for goodwill or indefinite-lived intangible assets in 2022, 2021 and 2020. |
Revenue Recognition | Revenue Recognition The Company derives revenues primarily from the sale of Specialty Products & Technologies and Equipment & Consumables products and services. Revenue is recognized when control of the promised products or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services (the transaction price). A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. For equipment, consumables and spare parts sold by the Company, control transfers to the customer at a point in time. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer, the customer must have the significant risks and rewards of ownership, and where acceptance is not a formality, the customer must have accepted the product or service. The Company’s principal terms of sale are FOB Shipping Point, or equivalent, and, as such, the Company primarily transfers control and records revenue for product sales upon shipment. Sales arrangements with delivery terms that are not FOB Shipping Point are not recognized upon shipment and the transfer of control for revenue recognition is evaluated based on the associated shipping terms and customer obligations. If a performance obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation or acceptance by the customer), revenue recognition for that performance obligation is deferred until such commitments have been fulfilled. Returns for products sold are estimated and recorded as a reduction of revenue at the time of sale. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are recorded as a reduction of revenue at the time of sale because these allowances reflect a reduction in the transaction price. Product returns, customer allowances and rebates are estimated based on historical experience and known trends. For extended warranty and service, control transfers to the customer over the term of the arrangement. Revenue for extended warranty and service is recognized based upon the period of time elapsed under the arrangement. For a contract with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate standalone selling price is the price observed in standalone sales to customers; however, when prices in standalone sales are not available the Company may use third-party pricing for similar products or services or estimate the standalone selling price. Allocation of the transaction price is determined at the contracts’ inception. The Company does not adjust transaction price for the effects of a significant financing component when the period between the transfer of the promised good or service to the customer and payment for that good or service by the customer is expected to be one year or less. |
Shipping and Handling | Shipping and HandlingShipping and handling costs are considered a fulfillment cost and are included as a component of cost of sales. Revenue derived from shipping and handling costs billed to customers is included in sales. |
Advertising | AdvertisingAdvertising costs are expensed as incurred. |
Research and Development | Research and DevelopmentThe Company conducts research and development activities for the purpose of developing new products, enhancing the functionality, effectiveness, ease of use and reliability of the Company’s existing products and expanding the applications for which uses of the Company’s products are appropriate. Research and development costs are expensed as incurred. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. Deferred tax assets generally represent items that can be used as a tax deduction or credit in the Company’s tax return in future years for which the tax benefit has already been reflected on the Company’s Consolidated Statements of Operations. The Company establishes valuation allowances for its deferred tax assets if it is more likely than not that some or all of the deferred tax assets will not be realized. Deferred tax liabilities generally represent items that have already been taken as a deduction on the Company’s tax return but have not yet been recognized as an expense in the Company’s Consolidated Statements of Operations. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income tax expense in the period that includes the enactment date. The Company provides for unrecognized tax benefits when, based upon the technical merits, it is “more likely than not” that an uncertain tax position will not be sustained upon examination. Judgment is required in evaluating tax positions and determining income tax provisions. The Company re-evaluates the technical merits of its tax positions and may recognize an uncertain tax benefit in certain circumstances, including when: (1) a tax audit is completed; (2) applicable tax laws change, including a tax case ruling or legislative guidance; or (3) the applicable statute of limitations expires. The Company recognizes potential accrued interest and penalties associated with unrecognized tax positions in income tax expense. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. Based on the Company’s current analysis of the provisions, the Company does not believe this legislation will have a material impact on its Consolidated Financial Statements. |
Restructuring | RestructuringThe Company periodically initiates restructuring activities to appropriately position the Company’s cost base relative to prevailing economic conditions and associated customer demand as well as in connection with certain acquisitions. Costs associated with productivity improvement and restructuring actions can include termination benefits and related charges in addition to facility closure, contract termination and other related activities. The Company records the cost of the restructuring activities when impairment is identified or when the associated liability is incurred. |
Foreign Currency Translation | Foreign Currency TranslationExchange rate adjustments resulting from foreign currency transactions are recognized in net income, whereas effects resulting from the translation of financial statements are reflected as a component of accumulated other comprehensive loss within equity. Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates and income statement accounts are translated at weighted average rates. Net foreign currency transaction gains or losses were not material in any of the years presented. |
Derivative Financial Instruments | Derivative Financial Instruments The Company is neither a dealer nor a trader in derivative instruments. The Company has generally accepted the exposure to transactional exchange rate movements without using derivative instruments to manage this risk, although the Company from time to time partially hedges its net investments in foreign operations against adverse movements in exchange rates through foreign currency-denominated debt and cross-currency swaps. The Company may at times also enter into interest rate swaps to mitigate a portion of its interest rate risk related to the Company’s debt. The derivative instruments are recorded on the Consolidated Balance Sheets as either an asset or liability measured at fair value. To the extent the interest rate swap qualifies as an effective hedge, changes in fair value are recognized in accumulated other comprehensive loss within equity. |
Loss Contingencies | Loss Contingencies The Company records a reserve for loss contingencies when it is both probable that a loss will be incurred and the amount of the loss is reasonably estimable. The Company evaluates pending litigation and other contingencies at least quarterly and adjusts the reserve for such contingencies for changes in probable and reasonably estimable losses. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Foreign currency translation adjustments related to the Company’s cross-currency swap arrangements and foreign currency denominated debt that are designated as net investment hedges are adjusted for income taxes as those arrangements are not indefinite. Changes in the funded status of the pension plans, net of taxes, are recognized in the year in which the changes occur and reported in other comprehensive loss. |
Stock-Based Compensation | Stock-Based CompensationThe Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted, including stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”), based on the fair value of the award as of the grant date. Equity-based compensation expense is recognized net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, except that in the case of RSUs compensation expense is recognized using an accelerated attribution method. |
Pension Plans | Pension PlansThe Company measures its pension assets and obligations that determine the funded status as of the end of the Company’s fiscal year, and recognizes an asset for an over funded status or a liability for an underfunded status in its Consolidated Balance Sheets. Changes in the funded status of the pension plans are recognized in the year in which the changes occur and reported in other comprehensive loss. |
Accounting Standards Recently Adopted | Accounting Standards Recently Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805) , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts, rather than at fair value. This standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. The Company adopted this guidance on January 1, 2022, which did not have a significant impact on the Company’s Consolidated Financial Statements. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40),” (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. This guidance is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. ASU 2020-06 was effective for public entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Effective January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective adoption approach. The cumulative effect of the change was recognized as an adjustment to the opening balance of retained earnings at the date of adoption. The comparative prior year information has not been restated and continues to be presented according to accounting standards in effect for those periods. The adoption of ASU 2020-06 resulted in a $75.0 million increase to the carrying value of the convertible notes due 2025, net of deferred debt issuance costs and unamortized discount and a decrease to additional paid-in capital of $77.8 million. Additionally, the adoption resulted in a $21.4 million increase to retained earnings and an $18.6 million decrease to the related net deferred tax liability associated with the reduction of unamortized debt discount and deferred debt issuance costs. Refer to Note 16 for a further discussion of the impact of adopting ASU 2020-06. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective for public entities through December 31, 2022. However, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 to defer the effective date of ASU 2020-04 from December 31, 2022 to December 31, 2024. The Company adopted ASU 2020-04 as of December 31, 2022 and its adoption did not have an impact on the Company’s Consolidated Financial Statements. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Depreciable Assets | The provision for depreciation has been computed principally by the straight-line method based on the estimated useful lives of the depreciable assets as follows: Category Useful Life Buildings 30 years Leased assets and leasehold improvements Amortized over the lesser of the economic life of the asset or the term of the lease Machinery, equipment and other assets 3 – 10 years The classes of property, plant and equipment as of December 31 are summarized as follows ($ in millions): 2022 2021 Land and improvements $ 10.0 $ 10.7 Buildings and improvements 154.5 168.7 Machinery, equipment and other assets 370.2 354.5 Construction in progress 71.2 45.6 Gross property, plant and equipment 605.9 579.5 Less: accumulated depreciation (312.3) (315.4) Property, plant and equipment, net $ 293.6 $ 264.1 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates ($ in millions): Osteogenics Intraoral Scanner Business Assets acquired: Cash $ 2.1 $ 2.7 Accounts receivable 2.5 0.1 Inventories 13.3 6.1 Intangible assets 53.0 129.8 Property, plant and equipment — 0.3 Prepaids and Other Current Assets 1.3 — Goodwill 77.3 373.1 Non-current deferred tax asset — 96.0 Operating lease right-of-use assets 2.6 0.9 Other long-term assets 4.9 0.2 Total assets acquired 157.0 609.2 Liabilities assumed: Accounts payable (4.1) (0.5) Accrued expenses and other liabilities (2.5) (27.9) Non-current deferred tax liability (14.3) — Other long-term liabilities (5.8) — Operating lease liabilities (2.1) (0.5) Total liabilities assumed (28.8) (28.9) Total net assets acquired $ 128.2 $ 580.3 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The carrying amounts of the assets and liabilities of the Divestiture held for sale are as follows ($ in millions): December 31, 2021 ASSETS Current assets: Assets for Relevant Jurisdictions $ 12.2 Current assets held for sale $ 12.2 LIABILITIES AND EQUITY Current liabilities: Liabilities for Relevant Jurisdictions $ 4.0 Current liabilities held for sale $ 4.0 Year Ended December 31 2022 2021 2020 Sales $ 11.7 $ 413.5 $ 352.9 Cost of sales 9.1 234.6 249.6 Gross profit 2.6 178.9 103.3 Operating expenses: Selling, general and administrative 3.2 75.6 99.3 Research and development — 16.1 14.1 Operating (loss) profit (0.6) 87.2 (10.1) Income tax expense — 21.9 (0.9) (Loss) income from discontinued operations (0.6) 65.3 (9.2) Gain on sale of discontinued operations, net of tax 5.7 11.7 — Net income (loss) from discontinued operations $ 5.1 $ 77.0 $ (9.2) Significant non-cash operating items and capital expenditures for the Divestiture are reflected in the cash flows from operations as follows ($ in millions): Year Ended December 31 2022 2021 2020 Cash flows from operating activities Non-cash restructuring charges $ — $ — $ 9.6 Impairment charges $ — $ — $ 10.5 Depreciation and amortization 1 $ — $ 5.8 $ 10.9 Cash flows from investing activities: Capital expenditures $ — $ 6.7 $ 3.8 1 Depreciation and amortization were no longer recognized once the business was classified as discontinued operations as of August 27, 2021. |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Allowance for Credit Loss | The rollforward of the allowance for credit losses is summarized as follows ($ in millions): Balance at December 31, 2021 $ 20.7 Foreign currency translation (0.8) Provision for credit losses 4.8 Write-offs charged against the allowance (4.1) Recoveries (4.4) Balance at December 31, 2022 $ 16.2 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The classes of inventory as of December 31 are summarized as follows ($ in millions): 2022 2021 Finished goods $ 229.2 $ 214.3 Work in process 23.9 22.0 Raw materials 103.4 88.3 Reserve for inventory obsolescence (55.7) (60.8) Total $ 300.8 $ 263.8 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The provision for depreciation has been computed principally by the straight-line method based on the estimated useful lives of the depreciable assets as follows: Category Useful Life Buildings 30 years Leased assets and leasehold improvements Amortized over the lesser of the economic life of the asset or the term of the lease Machinery, equipment and other assets 3 – 10 years The classes of property, plant and equipment as of December 31 are summarized as follows ($ in millions): 2022 2021 Land and improvements $ 10.0 $ 10.7 Buildings and improvements 154.5 168.7 Machinery, equipment and other assets 370.2 354.5 Construction in progress 71.2 45.6 Gross property, plant and equipment 605.9 579.5 Less: accumulated depreciation (312.3) (315.4) Property, plant and equipment, net $ 293.6 $ 264.1 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Operating Lease Expense | The components of operating lease expense for the years ended December 31 were as follows ($ in millions) : 2022 2021 Fixed operating lease expense (a) $ 31.7 $ 32.4 Variable operating lease expense 7.2 6.1 Total operating lease expense $ 38.9 $ 38.5 ______________ (a) Includes short-term leases and sublease income, both of which were not significant. |
Schedule of Weighted Average Remaining Lease Term and Discount Rate | The following table presents the weighted average remaining lease term and weighted average discount rates related to the Company’s operating leases as of December 31: 2022 2021 Weighted average remaining lease term 8 years 9 years Weighted average discount rate 4.1 % 3.5 % |
Schedule of Maturity Of Operating Lease Liabilities | The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2022 ($ in millions): 2023 $ 32.2 2024 28.7 2025 23.9 2026 19.8 2027 16.8 Thereafter 50.3 Total operating lease payments 171.7 Less: imputed interest (23.3) Total operating lease liabilities $ 148.4 |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Rollforward and Carrying Value Of Goodwill | The following is a rollforward of the Company’s goodwill by segment ($ in millions): Specialty Products & Technologies Equipment & Consumables Total Balance, December 31, 2021 $ 2,029.7 $ 1,102.3 $ 3,132.0 Acquisitions 77.3 373.1 450.4 Foreign currency translation (59.2) (26.6) (85.8) Balance, December 31, 2022 $ 2,047.8 $ 1,448.8 $ 3,496.6 |
Schedule of Acquired Indefinite-Lived Intangible Assets by Major Class | The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset as of December 31 ($ in millions): 2022 2021 Gross Accumulated Gross Accumulated Finite-lived intangibles: Patents and technology $ 432.2 $ (236.4) $ 313.8 $ (215.3) Customer relationships and other intangibles 924.1 (648.7) 907.4 (610.9) Trademarks and trade names 224.8 (100.2) 216.3 (75.4) Total finite-lived intangibles 1,581.1 (985.3) 1,437.5 (901.6) Indefinite-lived intangibles: Trademarks and trade names 490.9 — 510.5 — Total intangibles $ 2,072.0 $ (985.3) $ 1,948.0 $ (901.6) |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following summarizes the gross carrying value and accumulated amortization for each major category of intangible asset as of December 31 ($ in millions): 2022 2021 Gross Accumulated Gross Accumulated Finite-lived intangibles: Patents and technology $ 432.2 $ (236.4) $ 313.8 $ (215.3) Customer relationships and other intangibles 924.1 (648.7) 907.4 (610.9) Trademarks and trade names 224.8 (100.2) 216.3 (75.4) Total finite-lived intangibles 1,581.1 (985.3) 1,437.5 (901.6) Indefinite-lived intangibles: Trademarks and trade names 490.9 — 510.5 — Total intangibles $ 2,072.0 $ (985.3) $ 1,948.0 $ (901.6) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the intangible assets recorded as of December 31, 2022, amortization expense is estimated as follows for the next five years and thereafter: Years Ending December 31, 2023 $ 99.3 2024 89.6 2025 89.1 2026 81.1 2027 76.5 Thereafter 160.2 $ 595.8 |
Accrued Expenses And Other Li_2
Accrued Expenses And Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued expenses and other [Abstract] | |
The components of accrued expenses and other liabilities | Accrued expenses and other liabilities as of December 31 were as follows ($ in millions): 2022 2021 Current Noncurrent Current Noncurrent Compensation and benefits $ 148.0 $ 17.5 $ 188.9 $ 17.9 Sales and product allowances 85.1 1.3 75.4 1.2 Contract liabilities 78.9 8.6 60.1 5.1 Taxes, income and other 42.1 68.6 48.1 201.4 Restructuring-related employee severance, benefits and other 18.9 — 21.9 — Pension benefits 5.6 17.5 5.6 41.7 Loss contingencies 8.1 27.6 8.4 30.3 Derivative financial instruments — — 19.6 — Other 84.7 10.2 134.3 6.6 Total $ 471.4 $ 151.3 $ 562.3 $ 304.2 |
Hedging Transactions And Deri_2
Hedging Transactions And Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments, gain (loss) | The following table summarizes the notional values as of December 31, 2022 and 2021 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive loss (“OCI”) for the years ended December 31, 2022 and 2021 ($ in millions): Notional Amount Gain Recognized in OCI Year Ended December 31, 2022 Foreign currency denominated debt $ 222.7 $ 13.8 Interest rate contract — 2.2 Foreign currency contracts — 68.5 Total $ 222.7 $ 84.5 Notional Amount Gain Recognized in OCI Year Ended December 31, 2021 Foreign currency denominated debt $ 236.5 $ 32.5 Interest rate contracts 250.0 6.1 Foreign currency contracts 650.0 49.7 Total $ 1,136.5 $ 88.3 |
Schedule of notional amounts of outstanding derivative positions | The following table summarizes the notional values as of December 31, 2022 and 2021 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive loss (“OCI”) for the years ended December 31, 2022 and 2021 ($ in millions): Notional Amount Gain Recognized in OCI Year Ended December 31, 2022 Foreign currency denominated debt $ 222.7 $ 13.8 Interest rate contract — 2.2 Foreign currency contracts — 68.5 Total $ 222.7 $ 84.5 Notional Amount Gain Recognized in OCI Year Ended December 31, 2021 Foreign currency denominated debt $ 236.5 $ 32.5 Interest rate contracts 250.0 6.1 Foreign currency contracts 650.0 49.7 Total $ 1,136.5 $ 88.3 |
Schedule of derivative instruments in statement of financial position, fair value | The Company’s derivative instruments, as well as its non-derivative debt instruments designated and qualifying as net investment hedges, were classified as of December 31, 2022 and 2021, in the Company’s Consolidated Balance Sheets as follows ($ in millions): 2022 2021 Derivative liabilities: Accrued expenses and other liabilities $ — $ 19.6 Nonderivative hedging instruments: Long-term debt $ 222.7 $ 236.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities at carrying and fair value | A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows ($ in millions): Quoted Prices in Significant Other Significant Total December 31, 2022: Liabilities: Deferred compensation plans $ — $ 15.8 $ — $ 15.8 Contingent consideration $ — $ — $ 6.0 $ 6.0 December 31, 2021: Liabilities: Interest rate swap derivative contracts $ — $ 2.2 $ — $ 2.2 Cross-currency swap derivative contracts $ — $ 17.4 $ — $ 17.4 Deferred compensation plans $ — $ 16.5 $ — $ 16.5 The carrying amounts and fair values of the Company’s financial instruments as of December 31, were as follows ($ in millions): 2022 2021 Carrying Amount Fair Value Carrying Amount Fair Value Liabilities: Contingent consideration $ 6.0 $ 6.0 $ — $ — Interest rate swap derivative contracts $ — $ — $ 2.2 $ 2.2 Cross-currency swap derivative contracts $ — $ — $ 17.4 $ 17.4 Convertible senior notes due 2025 $ 510.0 $ 873.0 $ 432.1 $ 1,162.5 Long-term debt $ 870.7 $ 870.7 $ 883.4 $ 883.4 |
Pension And Other Benefit Pla_2
Pension And Other Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | The following sets forth the funded status of the Company’s plans as of the most recent actuarial valuations using measurement dates of December 31 ($ in millions): Pension Benefits 2022 2021 Change in pension benefit obligation: Benefit obligation at beginning of year $ (129.1) $ (171.6) Service cost (5.5) (7.3) Interest cost (1.8) (1.2) Employee contributions (2.5) (3.1) Benefits and other expenses paid 3.0 3.3 Actuarial gain 27.3 13.0 Amendments, settlements and curtailments 7.7 33.2 Foreign exchange rate impact 3.4 4.6 Benefit obligation at end of year (97.5) (129.1) Change in plan assets: Fair value of plan assets at beginning of year 80.6 104.1 Actual return on plan assets (1.7) 5.8 Employer contributions 5.5 6.0 Employee contributions 2.5 3.1 Amendments and settlements (6.6) (32.8) Benefits and other expenses paid (3.1) (3.3) Foreign exchange rate impact (2.8) (2.3) Fair value of plan assets at end of year 74.4 80.6 Funded status $ (23.1) $ (48.5) |
Defined Benefit Plan, Assumptions | Weighted average assumptions used to determine benefit obligations at date of measurement: December 31, 2022 2021 Discount rate 3.9 % 1.5 % Rate of compensation increase 2.8 % 2.2 % Weighted average assumptions used to determine net periodic pension cost at date of measurement: Year Ended December 31, 2022 2021 Discount rate 2.4 % 1.0 % Expected long-term return on plan assets 3.3 % 3.2 % Rate of compensation increase 2.2 % 1.3 % |
Schedule of Net Benefit Costs | Components of net periodic pension cost: Year Ended December 31, ($ in millions) 2022 2021 2020 Service cost $ (5.5) $ (7.3) $ (9.7) Interest cost (1.8) (1.2) (1.6) Expected return on plan assets 2.6 3.3 3.7 Amortization of prior service credit and initial net obligation 0.3 0.4 0.4 Amortization of actuarial gain (loss) 0.1 (0.7) (1.4) Net settlement and curtailment gain (loss) 1.9 0.8 (1.4) Net periodic pension cost $ (2.4) $ (4.7) $ (10.0) |
Schedule of Defined Benefit Plans Disclosures | The following table represents the service cost and other net periodic benefit costs of the defined benefit pension plans incurred during the years ended December 31, 2022, 2021 and 2020 ($ in millions): 2022 2021 2020 Service cost: Cost of goods sold $ (0.8) $ (0.8) $ (1.2) Selling, general and administrative (4.7) (6.5) (8.5) Other net periodic pension costs: Other income (expense) 3.1 2.6 (0.3) Total $ (2.4) $ (4.7) $ (10.0) |
Schedule of Allocation of Plan Assets | The fair values of the Company’s pension plan assets as of December 31, 2022, by asset category, were as follows ($ in millions): Quoted Prices in Significant Significant Total Cash and cash equivalents $ 8.4 $ — $ — $ 8.4 Insurance contracts — — 49.7 49.7 Total $ 8.4 $ — $ 49.7 $ 58.1 Investments measured at NAV (a) : Mutual funds 16.3 Total assets at fair value $ 74.4 ______________ (a) The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the total plan assets . The fair values of the Company’s pension plan assets as of December 31, 2021, by asset category, were as follows ($ in millions): Quoted Prices in Significant Significant Total Cash and cash equivalents $ 0.3 $ — $ — $ 0.3 Insurance contracts — — 50.1 50.1 Total $ 0.3 $ — $ 50.1 $ 50.4 Investments measured at NAV (a) : Mutual funds 30.2 Total assets at fair value $ 80.6 ______________ (a) The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the total plan assets. |
Summary of Changes in Level 3 Pension Plan Assets | The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended December 31, 2022 (in millions): Fair Value at January 1 Return on Plan Assets Net Purchases/(Settlements) Transfers Into/(Out of) Level 3 Fair Value at December 31 Insurance contracts $ 50.1 $ (0.1) $ (0.3) $ — $ 49.7 The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended December 31, 2021 (in millions): Fair Value at January 1 Return on Plan Assets Net Purchases/(Settlements) Transfers Into/(Out of) Level 3 Fair Value at December 31 Insurance contracts $ 77.2 $ (0.6) $ (26.5) $ — $ 50.1 |
Schedule of Expected Benefit Payments | The following sets forth benefit payments, which reflect expected future service, as appropriate, at December 31, 2022, are expected to be paid by the plans in the periods indicated ($ in millions): 2023 $ 5.6 2024 $ 5.1 2025 $ 5.1 2026 $ 4.8 2027 $ 4.8 2028 - 2032 $ 24.1 |
Warranty (Tables)
Warranty (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty accrual | The following is a rollforward of the Company’s accrued warranty liability ($ in millions): Balance at December 31, 2021 $ 9.4 Accruals for warranties issued during the year 15.3 Settlements made (15.1) Divestiture (0.1) Effect of foreign currency translation (0.3) Balance at December 31, 2022 $ 9.2 |
Debt And Credit Facilities (Tab
Debt And Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Components of debt | The components of the Company’s debt as of December 31, were as follows, net of debt discount and debt issuance costs ($ in millions): 2022 2021 Senior term loan facility due 2024 (the “Term Loan”) $ 648.3 $ 647.3 Senior euro term loan facility due 2024 (the “Euro Term Loan”) 222.4 236.1 Convertible senior notes due 2025 510.0 432.1 Other — 0.3 Total debt 1,380.7 1,315.8 Less: current portion (510.0) (432.4) Long-term debt $ 870.7 $ 883.4 |
Contractual Minimum Principal Payments on Debt | The Company’s contractual minimum principal payments are as follows ($ in millions): 2023 $ — 2024 872.7 2025 517.5 Total $ 1,390.2 |
Components of note interest expense | The following table sets forth total interest expense recognized related to the Notes ($ in millions): Year Ended December 31, 2022 2021 Contractual interest expense $ 12.3 $ 12.3 Amortization of debt issuance costs 2.9 1.9 Amortization of debt discount — 19.0 Total interest expense $ 15.2 $ 33.2 |
Components of unamortized debt discount and issuance costs | As of December 31, 2022 and 2021, remaining unamortized debt discount and debt issuance costs for the Term Loan, Euro Term Loan and Convertible Senior Notes are as follows ($ in millions): 2022 2021 Debt Issuance Costs Debt Discount Debt Issuance Costs Debt Discount Convertible Senior Notes $ 7.5 $ — $ 8.9 $ 76.5 Term Loan 1.7 — 2.7 — Euro Term Loan 0.3 — 0.5 — $ 9.5 $ — $ 12.1 $ 76.5 |
Stock Transactions And Stock-_2
Stock Transactions And Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share Activity | The following table summarizes the Company’s stock activity (shares in millions): Year Ended December 31, 2022 2021 2020 Common stock - shares issued: Balance, beginning of period 162.0 160.2 158.7 Issuance of common stock 1.7 1.8 1.5 Balance, end of period 163.7 162.0 160.2 |
Summary of Assumption Used in the Black-Scholes Value Options Granted | The following summarizes the assumptions used in the Black-Scholes model to value Options granted during the years ended December 31: 2022 2021 2020 Risk-free interest rate 1.9 – 3.1% 1.0 – 1.3% 0.4 – 1.2% Weighted average volatility 33.6 % 25.3 % 25.3 % Dividend yield — % — % — % Expected years until exercise 6.0 6.0 6.0 |
Components Of Stock-Based Compensation Program | The following summarizes the components of the Company’s stock-based compensation expense for the years ended December 31 ($ in millions): 2022 2021 2020 RSUs / PSUs $ 19.3 $ 15.5 $ 13.3 Options 11.2 12.2 8.9 Total stock-based compensation expense $ 30.5 $ 27.7 $ 22.2 |
Schedule of Option Activity | The following summarizes the Company’s Option activity (in millions; except price per share and numbers of years): Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of December 31, 2019 8.0 $ 17.81 Granted 2.2 $ 26.14 Exercised (1.0) $ 14.01 Cancelled/forfeited (1.1) $ 21.17 Outstanding as of December 31, 2020 8.1 $ 20.08 Granted 1.7 $ 38.15 Exercised (1.3) $ 15.74 Cancelled/forfeited (0.6) $ 26.74 Outstanding as of December 31, 2021 7.9 $ 24.16 Granted 0.5 $ 48.23 Exercised (1.2) $ 18.61 Cancelled/forfeited (0.7) $ 30.29 Outstanding as of December 31, 2022 6.5 $ 26.24 6.3 $ 59.7 Vested and expected to vest as of December 31, 2022 6.3 $ 26.09 6.3 $ 58.8 Vested as of December 31, 2022 3.2 $ 22.01 5.4 $ 39.3 |
Schedule of Options Outstanding | Options outstanding as of December 31, 2022 are summarized below (in millions; except price per share and numbers of years): Outstanding Exercisable Exercise Price Number of Stock Options Average Average Number of Stock Options Average $9.74 to 12.65 0.4 $ 12.00 2.4 0.4 $ 12.00 $12.66 to 19.22 1.6 $ 17.95 4.8 1.3 $ 17.66 $19.23 to 26.50 2.7 $ 24.15 6.5 1.0 $ 24.10 $26.51 to $41.95 1.4 $ 36.74 7.9 0.5 $ 35.85 $41.96 to 48.52 0.4 $ 48.01 8.9 — $ 43.30 |
Summary Information of Unvested RSUs and PSUs Activity | The following summarizes information on unvested RSU and PSU activity related to the Company’s employees and non-employee directors (in millions; except weighted average grant-date fair value): Number of Weighted Average Unvested at December 31, 2019 2.1 $ 19.60 Granted 0.7 $ 25.76 Vested (0.5) $ 17.87 Forfeited (0.4) $ 20.98 Unvested at December 31, 2020 1.9 $ 22.01 Granted 0.5 $ 38.76 Vested (0.5) $ 20.34 Forfeited (0.2) $ 26.54 Unvested at December 31, 2021 1.7 $ 26.82 Granted 0.6 $ 47.80 Vested (0.5) $ 24.85 Forfeited (0.3) $ 33.62 Unvested at December 31, 2022 1.5 $ 34.85 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The changes in accumulated other comprehensive loss by component are summarized below ($ in millions): Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Cash Flow Hedges Unrealized Pension Costs Total Accumulated Other Comprehensive Loss Balance, December 31, 2019 $ (116.4) $ 0.1 $ (27.9) $ (144.2) Other comprehensive income (loss) before reclassifications: Increase (decrease) 26.0 (8.4) 3.9 21.5 Income tax impact 27.9 2.0 (1.1) 28.8 Other comprehensive income (loss) before reclassifications, net of income taxes 53.9 (6.4) 2.8 50.3 Amounts reclassified from accumulated other comprehensive (loss) income: Increase — — 2.9 2.9 Income tax impact — — (0.8) (0.8) Amounts reclassified from accumulated other comprehensive (loss) income, net of income taxes — — 2.1 2.1 Net current period other comprehensive income (loss), net of income taxes 53.9 (6.4) 4.9 52.4 Balance, December 31, 2020 $ (62.5) $ (6.3) $ (23.0) $ (91.8) Other comprehensive loss before reclassifications: (Decrease) increase (72.7) 6.1 21.9 (44.7) Income tax impact (17.0) (1.5) (4.7) (23.2) Other comprehensive (loss) income before reclassifications, net of income taxes (89.7) 4.6 17.2 (67.9) Amounts reclassified from accumulated other comprehensive loss income: Increase 15.9 — 5.0 20.9 Income tax impact (3.3) — (1.4) (4.7) Amounts reclassified from accumulated other comprehensive loss, net of income taxes 12.6 — 3.6 16.2 Net current period other comprehensive (loss) income, net of income taxes (77.1) 4.6 20.8 (51.7) Balance, December 31, 2021 $ (139.6) $ (1.7) $ (2.2) $ (143.5) Other comprehensive loss before reclassifications: (Decrease) increase (80.5) 2.2 24.6 (53.7) Income tax impact (20.4) (0.5) (5.2) (26.1) Other comprehensive (loss) income before reclassifications, net of income taxes (100.9) 1.7 19.4 (79.8) Amounts reclassified from accumulated other comprehensive loss income: Increase — — (2.3) (2.3) Income tax impact — — 0.5 0.5 Amounts reclassified from accumulated other comprehensive loss, net of income taxes — — (1.8) (1.8) Net current period other comprehensive (loss) income, net of income taxes (100.9) 1.7 17.6 (81.6) Balance, December 31, 2022 $ (240.5) $ — $ 15.4 $ (225.1) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue by geographical region and type | The following table presents the Company’s revenues disaggregated by geographical region for the years ended December 31, 2022 and 2021 ($ in millions). Sales taxes and other usage-based taxes collected from customers are excluded from revenues. The Company has historically defined emerging markets as developing markets of the world, which prior to the COVID-19 pandemic, experienced extended periods of accelerated growth in gross domestic product and infrastructure, including Eastern Europe, the Middle East, Africa, Latin America and Asia (with the exception of Japan and Australia). The Company defines developed markets as all markets of the world that are not emerging markets. Year Ended December 31, 2022 Specialty Products & Technologies Equipment & Consumables Total Geographical region: North America $ 711.1 $ 655.3 $ 1,366.4 Western Europe 388.9 121.1 510.0 Other developed markets 91.0 38.6 129.6 Emerging markets 407.6 155.5 563.1 Total $ 1,598.6 $ 970.5 $ 2,569.1 Year Ended December 31, 2021 Specialty Products & Technologies Equipment & Consumables Total Geographical region: North America $ 668.9 $ 659.3 $ 1,328.2 Western Europe 366.6 125.9 492.5 Other developed markets 98.2 41.2 139.4 Emerging markets 374.1 174.7 548.8 Total $ 1,507.8 $ 1,001.1 $ 2,508.9 Sales by Major Product Group: Year Ended December 31, ($ in millions) 2022 2021 2020 Consumables $ 2,147.5 $ 2,067.9 $ 1,590.7 Equipment 421.6 441.0 338.4 Total $ 2,569.1 $ 2,508.9 $ 1,929.1 |
Restructuring Activities And _2
Restructuring Activities And Related Impairments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | The related liability which is included in accrued liabilities in the Consolidated Balance Sheets is summarized below ($ in millions): Employee Severance Facility Exit Total Balance, December 31, 2021 $ 21.4 $ 0.5 21.9 Costs incurred 20.8 5.7 26.5 Paid/settled (24.0) (5.5) (29.5) Balance, December 31, 2022 $ 18.2 $ 0.7 $ 18.9 |
Schedule of restructuring reserve by type of cost | Restructuring related charges recorded for the years ended December 31 by segment were as follows ($ in millions): 2022 2021 2020 Specialty Products & Technologies $ 14.7 $ 25.2 $ 43.8 Equipment & Consumables 19.7 32.1 34.6 Other 3.2 6.3 6.0 Total $ 37.6 $ 63.6 $ 84.4 The restructuring related charges incurred during the years ended December 31, are reflected in the following captions in the accompanying Consolidated Statements of Operations ($ in millions): 2022 2021 2020 Cost of sales $ 13.6 $ 35.9 $ 18.3 Selling, general and administrative expenses 24.0 27.7 66.1 Total $ 37.6 $ 63.6 $ 84.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) before income taxes for the years ended December 31 were as follows ($ in millions): 2022 2021 2020 United States $ 21.9 $ 35.0 $ (64.3) International 262.0 219.5 44.3 Total $ 283.9 $ 254.5 $ (20.0) |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes for the years ended December 31 were as follows ($ in millions): 2022 2021 2020 Current: Federal U.S. $ 42.5 $ 17.7 $ 13.1 Non-U.S. 22.4 26.9 13.5 State and local 8.6 4.4 0.9 Deferred: Federal U.S. (31.3) (2.2) (13.1) Non-U.S. 11.3 (57.5) (72.7) State and local (7.6) 1.7 (4.2) Income tax provision (benefit) $ 45.9 $ (9.0) $ (62.5) |
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities as of December 31 were as follows ($ in millions): 2022 2021 Deferred tax assets: Inventories $ 15.4 $ 17.4 Pension benefits 6.2 11.5 Other accruals and prepayments 45.3 54.3 Lease liabilities 35.5 34.2 Stock-based compensation expense 7.5 6.8 Interest expense 36.0 8.7 Capitalized research expenses 15.1 3.8 Tax credit and loss carryforwards 38.2 117.3 Valuation allowances (38.7) (90.0) Total deferred tax asset 160.5 164.0 Deferred tax liabilities: Property, plant and equipment (5.7) (9.6) Unrealized gains and losses (6.2) (6.5) Right-of-use assets (31.5) (30.3) Goodwill and other intangible assets (92.2) (192.3) Total deferred tax liability (135.6) (238.7) Net deferred tax asset (liability) $ 24.9 $ (74.7) |
Summary Of Effective Income Tax Rate | The effective income tax rate for the years ended December 31 varies from the U.S. statutory federal income tax rate as follows: Percentage of Pretax Income 2022 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax rate resulting from: State income taxes (net of federal income tax benefit) 0.3 1.2 17.0 Impact of foreign operations (5.0) (6.4) 80.4 Foreign-Derived Intangible Income (“FDII”) (0.7) — — Subpart F and GILTI, net of foreign tax credits 6.7 6.4 (72.4) Change in uncertain tax positions (0.5) — 3.4 Research and experimentation credits and other (1.6) (1.6) 13.2 Permanent differences and other (0.9) 2.7 (20.3) Excess tax benefit from stock-based compensation (1.6) (1.9) 11.6 Valuation allowance release on certain Swiss NOLs — (8.1) — Impact of step-up of Swiss assets (1.5) (16.8) 258.6 Effective income tax rate 16.2 % (3.5) % 312.5 % |
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties, is as follows ($ in millions): 2022 2021 2020 Unrecognized tax benefits, beginning of year $ 5.7 $ 7.1 $ 9.1 Additions based on tax positions related to the current year 0.3 0.3 0.3 Additions for tax positions of prior years 4.2 — 0.3 Reductions for tax positions of prior years — (0.3) (1.7) Lapse of statute of limitations (2.3) (1.0) (1.0) Settlements (1.1) (0.4) — Effect of foreign currency translation (0.2) — 0.1 Unrecognized tax benefits, end of year $ 6.6 $ 5.7 $ 7.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The table below presents the computation of basic and diluted earnings per share ($ and shares in millions, except per share amounts): Year Ended December 31, 2022 2021 2020 Numerator: Income from continuing operations, net of tax $ 238.0 $ 263.5 42.5 Income (loss) from discontinued operations, net of tax $ 5.1 $ 77.0 $ (9.2) Net income $ 243.1 $ 340.5 $ 33.3 Denominator: Weighted-average common shares outstanding used in basic earnings (loss) per share 162.9 161.2 159.6 Incremental common shares from: Assumed exercise of dilutive options and vesting of dilutive restricted stock units 3.2 4.4 2.2 Assumed conversion of the Notes 11.5 12.0 2.3 Weighted average common shares outstanding used in diluted earnings (loss) per share 177.6 177.6 164.1 Earnings per share: Earnings from continuing operations - basic $ 1.46 $ 1.63 $ 0.27 Earnings from continuing operations - diluted $ 1.34 $ 1.48 $ 0.26 Earnings (loss) from discontinued operations - basic $ 0.03 $ 0.48 $ (0.06) Earnings (loss) from discontinued operations - diluted $ 0.03 $ 0.43 $ (0.06) Earnings - basic $ 1.49 $ 2.11 $ 0.21 Earnings - diluted $ 1.37 $ 1.92 * $ 0.20 * Earnings per share is computed independently for earnings per share from continuing operations and earnings per share from discontinued operations. The sum of earnings per share from continuing operations and earnings per share from discontinued operations does not equal earnings per share due to rounding. |
Schedule of antidilutive securities excluded from computation of earnings per share | The following table presents the number of outstanding securities not included in the computation of diluted income per share, because their effect was anti-dilutive (in millions): Year Ended December 31, 2022 2021 2020 Stock-based awards 1.5 1.2 4.1 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment results | Detailed segment data as of and for the years ended December 31 is as follows ($ in millions): 2022 2021 2020 Sales: Specialty Products & Technologies $ 1,598.6 $ 1,507.8 $ 1,117.3 Equipment & Consumables 970.5 1,001.1 811.8 Total $ 2,569.1 $ 2,508.9 $ 1,929.1 Operating profit and reconciliation to income (loss) before taxes: Specialty Products & Technologies $ 268.6 $ 272.3 $ 65.8 Equipment & Consumables 172.4 153.8 53.6 Other (121.8) (119.9) (75.9) Operating profit 319.2 306.2 43.5 Nonoperating income (expense): Other income (expense) 3.1 2.4 (1.0) Interest expense, net (38.4) (54.1) (62.5) Income (loss) before taxes $ 283.9 $ 254.5 $ (20.0) Depreciation and amortization: Specialty Products & Technologies $ 80.7 $ 84.0 $ 80.6 Equipment & Consumables 54.6 31.4 38.7 Other 2.5 2.4 2.4 Total $ 137.8 $ 117.8 $ 121.7 Capital expenditures, gross: Specialty Products & Technologies $ 48.8 $ 37.2 $ 36.4 Equipment & Consumables 20.6 10.6 5.8 Other 2.7 1.3 1.7 Total $ 72.1 $ 49.1 $ 43.9 Identifiable assets: December 31, 2022 December 31, 2021 Specialty Products & Technologies $ 3,475.7 $ 3,498.2 Equipment & Consumables 2,455.3 1,946.1 Held for sale — 12.2 Other 656.0 1,117.7 Total $ 6,587.0 $ 6,574.2 Operations in Geographical Areas: Year Ended December 31, ($ in millions) 2022 2021 2020 Sales: United States $ 1,261.9 $ 1,223.4 $ 960.1 China 222.2 236.7 198.2 All other (each country individually less than 5% of total sales) 1,085.0 1,048.8 770.8 Total $ 2,569.1 $ 2,508.9 $ 1,929.1 Property, plant and equipment, net: December 31, 2022 December 31, 2021 United States $ 183.4 $ 157.1 Sweden 41.4 49.0 Mexico 15.2 8.8 All other (each country individually less than 5% of total long-lived assets) 53.6 49.2 Total $ 293.6 $ 264.1 |
Business And Basis Of Present_2
Business And Basis Of Presentation - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments (in segments) | 2 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies - Estimated Useful Lives of Depreciable Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of depreciable asset | 30 years |
Machinery, equipment and other assets | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of depreciable asset | 3 years |
Machinery, equipment and other assets | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of depreciable asset | 10 years |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||||
Impairment loss | $ 0 | $ 0 | $ 0 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Long-term debt | 1,380,700,000 | 1,315,800,000 | ||
Increase (decrease) in stockholders' equity | 4,206,900,000 | 4,058,000,000 | ||
Additional Paid-in Capital | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in stockholders' equity | 3,699,000,000 | 3,732,600,000 | 3,684,400,000 | $ 3,589,700,000 |
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in stockholders' equity | $ 731,400,000 | 466,900,000 | $ 126,400,000 | $ 93,100,000 |
Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net deferred tax liability | 18,600,000 | |||
Adjustment | Additional Paid-in Capital | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in stockholders' equity | (77,800,000) | |||
Adjustment | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in stockholders' equity | 21,400,000 | |||
Adjustment | Convertible Debt | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Long-term debt | $ 75,000,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 05, 2022 | Apr. 20, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||
Contingent consideration | $ 6,000 | ||
Osteogenics Biomedical Inc | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 128,200 | ||
Weighted-average useful life of acquired intangible assets | 10 years | ||
Carestream Dental Technology | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 580,300 | ||
Contingent consideration | $ 7,500 | ||
Weighted-average useful life of acquired intangible assets | 8 years | ||
Osteogenics Biomedical Inc & Carestream Dental Technology | |||
Business Acquisition [Line Items] | |||
Acquisition costs | $ 14,500 |
Acquisitions - Fair Values of A
Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jul. 05, 2022 | Apr. 20, 2022 | Dec. 31, 2021 |
Assets acquired: | ||||
Goodwill | $ 3,496.6 | $ 3,132 | ||
Osteogenics Biomedical Inc | ||||
Assets acquired: | ||||
Cash | $ 2.1 | |||
Accounts receivable | 2.5 | |||
Inventories | 13.3 | |||
Intangible assets | 53 | |||
Property, plant and equipment | 0 | |||
Prepaids and Other Current Assets | 1.3 | |||
Goodwill | 77.3 | |||
Non-current deferred tax asset | 0 | |||
Operating lease right-of-use assets | 2.6 | |||
Other long-term assets | 4.9 | |||
Total assets acquired | 157 | |||
Liabilities assumed: | ||||
Accounts payable | (4.1) | |||
Accrued expenses and other liabilities | (2.5) | |||
Non-current deferred tax liability | (14.3) | |||
Other long-term liabilities | (5.8) | |||
Operating lease liabilities | (2.1) | |||
Total liabilities assumed | (28.8) | |||
Total net assets acquired | $ 128.2 | |||
Carestream Dental Technology | ||||
Assets acquired: | ||||
Cash | $ 2.7 | |||
Accounts receivable | 0.1 | |||
Inventories | 6.1 | |||
Intangible assets | 129.8 | |||
Property, plant and equipment | 0.3 | |||
Prepaids and Other Current Assets | 0 | |||
Goodwill | 373.1 | |||
Non-current deferred tax asset | 96 | |||
Operating lease right-of-use assets | 0.9 | |||
Other long-term assets | 0.2 | |||
Total assets acquired | 609.2 | |||
Liabilities assumed: | ||||
Accounts payable | (0.5) | |||
Accrued expenses and other liabilities | (27.9) | |||
Non-current deferred tax liability | 0 | |||
Other long-term liabilities | 0 | |||
Operating lease liabilities | (0.5) | |||
Total liabilities assumed | (28.9) | |||
Total net assets acquired | $ 580.3 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Discontinued operations disposed of by sale - Plamenca $ in Millions | Dec. 31, 2021 USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Liability for proceeds related to the Relevant Jurisdictions | $ 10.8 |
Consideration | $ 386.4 |
Discontinued Operations - Carry
Discontinued Operations - Carrying Amount of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Current assets held for sale | $ 0 | $ 12.2 |
Current liabilities: | ||
Current liabilities held for sale | $ 0 | 4 |
Discontinued operations disposed of by sale | Plamenca | ||
Current assets: | ||
Assets for Relevant Jurisdictions | 12.2 | |
Current assets held for sale | 12.2 | |
Current liabilities: | ||
Liabilities for Relevant Jurisdictions | 4 | |
Current liabilities held for sale | $ 4 |
Discontinued Operations - Opera
Discontinued Operations - Operating Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating expenses: | |||
Income (loss) from discontinued operations, net of tax | $ 5.1 | $ 77 | $ (9.2) |
Discontinued operations disposed of by sale | Plamenca | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales | 11.7 | 413.5 | 352.9 |
Cost of sales | 9.1 | 234.6 | 249.6 |
Gross profit | 2.6 | 178.9 | 103.3 |
Operating expenses: | |||
Selling, general and administrative | 3.2 | 75.6 | 99.3 |
Research and development | 0 | 16.1 | 14.1 |
Operating (loss) profit | (0.6) | 87.2 | (10.1) |
Income tax expense | 0 | 21.9 | (0.9) |
(Loss) income from discontinued operations | (0.6) | 65.3 | (9.2) |
Gain on sale of discontinued operations, net of tax | 5.7 | 11.7 | 0 |
Income (loss) from discontinued operations, net of tax | $ 5.1 | $ 77 | $ (9.2) |
Discontinued Operations - Signi
Discontinued Operations - Significant Non-Cash Operating Items and Capital Expenditures (Details) - Discontinued operations disposed of by sale - Plamenca - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Non-cash restructuring charges | $ 0 | $ 0 | $ 9.6 |
Impairment charges | 0 | 0 | 10.5 |
Depreciation and amortization | 0 | 5.8 | 10.9 |
Cash flows from investing activities: | |||
Capital expenditures | $ 0 | $ 6.7 | $ 3.8 |
Credit Losses - Narrative (Deta
Credit Losses - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Credit Loss [Abstract] | |
Number of portfolio segments (in segments) | 1 |
Credit Losses - Allowance for C
Credit Losses - Allowance for Credit Losses (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 20.7 |
Foreign currency translation | (0.8) |
Provision for credit losses | 4.8 |
Write-offs charged against the allowance | (4.1) |
Recoveries | (4.4) |
Ending balance | $ 16.2 |
Inventories - Summary (Details)
Inventories - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 229.2 | $ 214.3 |
Work in process | 23.9 | 22 |
Raw materials | 103.4 | 88.3 |
Reserve for inventory obsolescence | (55.7) | (60.8) |
Total | $ 300.8 | $ 263.8 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 605.9 | $ 579.5 |
Less: accumulated depreciation | (312.3) | (315.4) |
Property, plant and equipment, net | 293.6 | 264.1 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 10 | 10.7 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 154.5 | 168.7 |
Machinery, equipment and other assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 370.2 | 354.5 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 71.2 | $ 45.6 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |
Duration of option to terminate lease (in days) | 30 days |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term (in years) | 20 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Fixed operating lease expense | $ 31.7 | $ 32.4 |
Variable operating lease expense | 7.2 | 6.1 |
Total operating lease expense | $ 38.9 | $ 38.5 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term | 8 years | 9 years |
Weighted average discount rate | 4.10% | 3.50% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2023 | $ 32.2 |
2024 | 28.7 |
2025 | 23.9 |
2026 | 19.8 |
2027 | 16.8 |
Thereafter | 50.3 |
Total operating lease payments | 171.7 |
Less: imputed interest | (23.3) |
Total operating lease liabilities | $ 148.4 |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment loss | $ 0 | $ 0 | $ 0 |
Total intangible amortization expense | $ 106,000,000 | $ 81,500,000 | $ 87,300,000 |
Goodwill And Other Intangible_4
Goodwill And Other Intangible Assets - Rollforward (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 3,132 |
Acquisitions | 450.4 |
Foreign currency translation | (85.8) |
Ending balance | 3,496.6 |
Specialty Products & Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 2,029.7 |
Acquisitions | 77.3 |
Foreign currency translation | (59.2) |
Ending balance | 2,047.8 |
Equipment & Consumables | |
Goodwill [Roll Forward] | |
Beginning balance | 1,102.3 |
Acquisitions | 373.1 |
Foreign currency translation | (26.6) |
Ending balance | $ 1,448.8 |
Goodwill And Other Intangible_5
Goodwill And Other Intangible Assets - Intangible Assets by Major Class (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | $ 1,581.1 | $ 1,437.5 |
Accumulated Amortization | (985.3) | (901.6) |
Gross carrying amount of total intangibles | 2,072 | 1,948 |
Trademarks and trade names | ||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Trademarks and trade names of indefinite-live intangibles | 490.9 | 510.5 |
Patents and technology | ||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 432.2 | 313.8 |
Accumulated Amortization | (236.4) | (215.3) |
Customer relationships and other intangibles | ||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 924.1 | 907.4 |
Accumulated Amortization | (648.7) | (610.9) |
Trademarks and trade names | ||
Intangible Assets, Gross (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 224.8 | 216.3 |
Accumulated Amortization | $ (100.2) | $ (75.4) |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other - Intangible Assets Future Amortization Expense (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 99.3 |
2024 | 89.6 |
2025 | 89.1 |
2026 | 81.1 |
2027 | 76.5 |
Thereafter | 160.2 |
Total amortization | $ 595.8 |
Accrued Expenses And Other Li_3
Accrued Expenses And Other Liabilities - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current | ||
Compensation and benefits | $ 148 | $ 188.9 |
Sales and product allowances | 85.1 | 75.4 |
Contract liabilities | 78.9 | 60.1 |
Taxes, income and other | 42.1 | 48.1 |
Restructuring-related employee severance, benefits and other | 18.9 | 21.9 |
Pension benefits | 5.6 | 5.6 |
Loss contingencies | 8.1 | 8.4 |
Derivative financial instruments | 0 | 19.6 |
Other | 84.7 | 134.3 |
Total | 471.4 | 562.3 |
Noncurrent | ||
Compensation and benefits | 17.5 | 17.9 |
Sales and product allowances | 1.3 | 1.2 |
Contract liabilities | 8.6 | 5.1 |
Taxes, income and other | 68.6 | 201.4 |
Restructuring-related employee severance, benefits and other | 0 | 0 |
Pension benefits | 17.5 | 41.7 |
Loss contingencies | 27.6 | 30.3 |
Derivative financial instruments | 0 | 0 |
Other | 10.2 | 6.6 |
Total | $ 151.3 | $ 304.2 |
Hedging Transactions And Deri_3
Hedging Transactions And Derivative Financial Instruments - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 EUR (€) | Sep. 20, 2019 USD ($) | Sep. 20, 2019 EUR (€) | |
Derivative [Line Items] | |||||
Total debt | $ 1,380,700,000 | $ 1,315,800,000 | |||
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | 0 | 10,200,000 | |||
Euro term loan due 2024 | |||||
Derivative [Line Items] | |||||
Term loan | € | € 208,000,000 | € 600,000,000 | |||
Total debt | 222,400,000 | 236,100,000 | |||
US term loan due 2024 | |||||
Derivative [Line Items] | |||||
Term loan | $ 650,000,000 | ||||
Total debt | $ 648,300,000 | $ 647,300,000 | $ 650,000,000 |
Hedging Transactions And Deri_4
Hedging Transactions And Derivative Financial Instruments - Summary of Notional Values and Pretax Impact in Fair Values of Net Investment Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 222.7 | $ 1,136.5 |
Gain Recognized in OCI | 84.5 | 88.3 |
Net investment hedging | Foreign currency denominated debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 222.7 | 236.5 |
Gain Recognized in OCI | 13.8 | 32.5 |
Net investment hedging | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 0 | 250 |
Gain Recognized in OCI | 2.2 | 6.1 |
Net investment hedging | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 0 | 650 |
Gain Recognized in OCI | $ 68.5 | $ 49.7 |
Hedging Transactions And Deri_5
Hedging Transactions And Derivative Financial Instruments - Derivative and Nonderivative Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Accrued expenses and other liabilities | $ 0 | $ 19.6 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | |
Long-term debt | ||
Derivatives, Fair Value [Line Items] | ||
Long-term debt | $ 222.7 | $ 236.5 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Liabilities: | ||
Swap derivative contracts | $ 0 | $ 19.6 |
Deferred compensation plans | 15.8 | 16.5 |
Contingent consideration | 6 | |
Quoted Prices in Active Market (Level 1) | ||
Liabilities: | ||
Deferred compensation plans | 0 | 0 |
Contingent consideration | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Deferred compensation plans | 15.8 | 16.5 |
Contingent consideration | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Deferred compensation plans | 0 | 0 |
Contingent consideration | $ 6 | |
Interest rate swap derivative contracts | ||
Liabilities: | ||
Swap derivative contracts | 2.2 | |
Interest rate swap derivative contracts | Quoted Prices in Active Market (Level 1) | ||
Liabilities: | ||
Swap derivative contracts | 0 | |
Interest rate swap derivative contracts | Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Swap derivative contracts | 2.2 | |
Interest rate swap derivative contracts | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Swap derivative contracts | 0 | |
Cross-currency swap derivative contracts | ||
Liabilities: | ||
Swap derivative contracts | 17.4 | |
Cross-currency swap derivative contracts | Quoted Prices in Active Market (Level 1) | ||
Liabilities: | ||
Swap derivative contracts | 0 | |
Cross-currency swap derivative contracts | Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Swap derivative contracts | 17.4 | |
Cross-currency swap derivative contracts | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Swap derivative contracts | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 6 | |
Swap derivative contracts | 0 | $ 19.6 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 6 | 0 |
Convertible senior notes due 2025 | 510 | 432.1 |
Long-term debt | 870.7 | 883.4 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 6 | 0 |
Convertible senior notes due 2025 | 873 | 1,162.5 |
Long-term debt | 870.7 | 883.4 |
Interest rate swap derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap derivative contracts | 2.2 | |
Interest rate swap derivative contracts | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap derivative contracts | 0 | 2.2 |
Interest rate swap derivative contracts | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap derivative contracts | 0 | 2.2 |
Cross-currency swap derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap derivative contracts | 17.4 | |
Cross-currency swap derivative contracts | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap derivative contracts | 0 | 17.4 |
Cross-currency swap derivative contracts | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Swap derivative contracts | $ 0 | $ 17.4 |
Pension And Other Benefit Pla_3
Pension And Other Benefit Plans - Funded Status Of Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in plan assets: | |||
Funded status | $ (23.1) | $ (48.5) | |
Defined benefit pension plans | |||
Change in pension benefit obligation: | |||
Benefit obligation at beginning of year | (129.1) | (171.6) | |
Service cost | (5.5) | (7.3) | $ (9.7) |
Interest cost | (1.8) | (1.2) | (1.6) |
Employee contributions | (2.5) | (3.1) | |
Benefits and other expenses paid | 3 | 3.3 | |
Actuarial gain | 27.3 | 13 | |
Amendments, settlements and curtailments | 7.7 | 33.2 | |
Foreign exchange rate impact | 3.4 | 4.6 | |
Benefit obligation at end of year | (97.5) | (129.1) | (171.6) |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 80.6 | 104.1 | |
Actual return on plan assets | (1.7) | 5.8 | |
Employer contributions | 5.5 | 6 | |
Employee contributions | 2.5 | 3.1 | |
Amendments and settlements | (6.6) | (32.8) | |
Benefits and other expenses paid | (3.1) | (3.3) | |
Foreign exchange rate impact | (2.8) | (2.3) | |
Fair value of plan assets at end of year | $ 74.4 | $ 80.6 | $ 104.1 |
Pension And Other Benefit Pla_4
Pension And Other Benefit Plans - Weighted Average Assumptions Used To Determine Benefit Obligations (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Discount rate | 3.90% | 1.50% |
Rate of compensation increase | 2.80% | 2.20% |
Pension And Other Benefit Pla_5
Pension And Other Benefit Plans - Components of Net Periodic Benefit Cost of Defined Benefit Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | $ (2.4) | $ (4.7) | $ (10) |
Defined benefit pension plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | (5.5) | (7.3) | (9.7) |
Interest cost | (1.8) | (1.2) | (1.6) |
Expected return on plan assets | 2.6 | 3.3 | 3.7 |
Amortization of prior service credit and initial net obligation | 0.3 | 0.4 | 0.4 |
Amortization of actuarial loss | 0.1 | (0.7) | (1.4) |
Net settlement and curtailment gain (loss) | 1.9 | 0.8 | (1.4) |
Net periodic pension cost | $ (2.4) | $ (4.7) | $ (10) |
Pension And Other Benefit Pla_6
Pension And Other Benefit Plans - Components of Net Periodic Benefit Cost Reflected in the Consolidated Condensed Statement of Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other net periodic pension costs: | |||
Other income (expense) | $ 3.1 | $ 2.6 | $ (0.3) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense) | ||
Net periodic pension cost | $ (2.4) | (4.7) | (10) |
Cost of sales | |||
Service cost: | |||
Service costs | (0.8) | (0.8) | (1.2) |
Selling, general and administrative expenses | |||
Service cost: | |||
Service costs | $ (4.7) | $ (6.5) | $ (8.5) |
Pension And Other Benefit Pla_7
Pension And Other Benefit Plans - Weighted Average Assumptions Used To Determine Net Periodic Pension Cost (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Discount rate | 2.40% | 1% |
Expected long-term return on plan assets | 3.30% | 3.20% |
Rate of compensation increase | 2.20% | 1.30% |
Pension And Other Benefit Pla_8
Pension And Other Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term rate of return on asset assumptions | 3.30% | 3.20% | ||
NAV per share, investment redemption, notice period | 90 days | |||
Expense for all defined benefit and defined contributions pension plans | $ 19.1 | $ 18 | $ 11 | |
Multiemployer plan, employer contribution cost | 1.6 | 3.9 | $ 8.2 | |
Defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Unrecognized prior service credits, before tax | 2.3 | |||
Unrecognized prior service credits, net of tax | 1.8 | |||
Unrecognized actuarial gain, before tax | 17.5 | |||
Unrecognized actuarial gain, net of tax | 13.6 | |||
Employer contributions | 5.5 | $ 6 | ||
Expected employer contributions within the next year | $ 5.5 | |||
Defined benefit pension plans | Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Future amortization of prior service cost (credit) | $ 0.4 | |||
Future amortization of prior service cost (credit), net of tax | 0.3 | |||
Future amortization of gain (loss) | 1.4 | |||
Future amortization of gain (loss), net of tax | $ 1.1 | |||
Minimum | Defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term rate of return on asset assumptions | 2.30% | 1.80% | ||
Maximum | Defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term rate of return on asset assumptions | 5.30% | 5.30% | ||
Weighted Average | Defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term rate of return on asset assumptions | 3.30% | 3.20% |
Pension And Other Benefit Pla_9
Pension And Other Benefit Plans - Fair Values Of Pension Plan Assets (Details) - Defined benefit pension plans - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | $ 74.4 | $ 80.6 | $ 104.1 |
Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 8.4 | 0.3 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 49.7 | 50.1 | $ 77.2 |
Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 58.1 | 50.4 | |
Cash and cash equivalents | Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 8.4 | 0.3 | |
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 0 | 0 | |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 0 | 0 | |
Cash and cash equivalents | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 8.4 | 0.3 | |
Insurance contracts | Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 0 | 0 | |
Insurance contracts | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 0 | 0 | |
Insurance contracts | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 49.7 | 50.1 | |
Insurance contracts | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | 49.7 | 50.1 | |
Mutual funds | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets | $ 16.3 | $ 30.2 |
Pension And Other Benefit Pl_10
Pension And Other Benefit Plans - Changes in Fair Value of Plan Assets (Details) - Defined benefit pension plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Plan Assets Measured on Recurring Basis [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 80.6 | $ 104.1 |
Fair value of plan assets at end of year | 74.4 | 80.6 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Plan Assets Measured on Recurring Basis [Roll Forward] | ||
Fair value of plan assets at beginning of year | 50.1 | 77.2 |
Return on Plan Assets | (0.1) | (0.6) |
Net Purchases/(Settlements) | (0.3) | (26.5) |
Transfers Into/(Out of) Level 3 | 0 | 0 |
Fair value of plan assets at end of year | $ 49.7 | $ 50.1 |
Pension And Other Benefit Pl_11
Pension And Other Benefit Plans - Benefit Payments That Reflect Expected Future Service (Details) - Defined benefit pension plans $ in Millions | Dec. 31, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 5.6 |
2024 | 5.1 |
2025 | 5.1 |
2026 | 4.8 |
2027 | 4.8 |
2028 - 2032 | $ 24.1 |
Warranty - Narrative (Details)
Warranty - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product warranty period | 90 days |
Warranty - Warranty Accrual (De
Warranty - Warranty Accrual (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |
Beginning balance | $ 9.4 |
Accruals for warranties issued during the year | 15.3 |
Settlements made | (15.1) |
Divestiture | (0.1) |
Effect of foreign currency translation | (0.3) |
Ending balance | $ 9.2 |
Litigation And Contingencies -
Litigation And Contingencies - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for legal matters | $ 35.7 | $ 38.7 |
Guarantees | $ 19 |
Debt And Credit Facilities - Co
Debt And Credit Facilities - Components Of Debt (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 20, 2019 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,380,700,000 | $ 1,315,800,000 | |
Less: current portion | (510,000,000) | (432,400,000) | |
Long-term debt | 870,700,000 | 883,400,000 | |
US term loan due 2024 | |||
Debt Instrument [Line Items] | |||
Total debt | 648,300,000 | 647,300,000 | $ 650,000,000 |
Euro term loan due 2024 | |||
Debt Instrument [Line Items] | |||
Total debt | 222,400,000 | 236,100,000 | |
Other | |||
Debt Instrument [Line Items] | |||
Total debt | 0 | 300,000 | |
Convertible Debt | Convertible senior notes due 2025 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 510,000,000 | $ 432,100,000 |
Debt And Credit Facilities - De
Debt And Credit Facilities - Debt Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 0 |
2024 | 872.7 |
2025 | 517.5 |
Total | $ 1,390.2 |
Debt And Credit Facilities - Na
Debt And Credit Facilities - Narrative (Details) $ / shares in Units, shares in Millions | 12 Months Ended | |||||||||
Jun. 15, 2021 USD ($) | Feb. 09, 2021 USD ($) | May 21, 2020 USD ($) tradingDay $ / shares shares | Sep. 20, 2019 USD ($) | Dec. 31, 2022 USD ($) tradingDay $ / shares | Dec. 31, 2021 USD ($) tradingDay $ / shares | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2019 USD ($) | Sep. 20, 2019 EUR (€) | |
Debt Instrument [Line Items] | ||||||||||
Total borrowings under term loan | $ 1,300,000,000 | |||||||||
Senior unsecured revolving credit facility | $ 250,000,000 | |||||||||
Rate in excess of Federal funds rate | 0.0050 | 0.0050 | ||||||||
Rate in excess of Eurocurrency rate | 0.010 | 0.010 | ||||||||
Leverage ratio | 3.75 | 3.75 | ||||||||
Contingency provision on the ratio of indebtedness to net capital | 4.25 | 4.25 | ||||||||
Contingency provision, purchase price in excess of $100 million | $ 100,000,000 | |||||||||
Interest coverage ratio (at least) | 3 | 3 | ||||||||
Proceeds from issuance of convertible senior notes | $ 0 | $ 0 | $ 517,500,000 | |||||||
Conversion ratio | 0.0475862 | |||||||||
Conversion price (in USD per share) | $ / shares | $ 21.01 | $ 21.01 | ||||||||
Total debt | $ 1,380,700,000 | $ 1,315,800,000 | ||||||||
Debt Issuance Costs | 9,500,000 | 12,100,000 | ||||||||
Increase (decrease) in stockholders' equity | (4,206,900,000) | (4,058,000,000) | ||||||||
Additional Paid-in Capital | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Increase (decrease) in stockholders' equity | (3,699,000,000) | (3,732,600,000) | (3,684,400,000) | $ (3,589,700,000) | ||||||
Retained Earnings | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Increase (decrease) in stockholders' equity | (731,400,000) | (466,900,000) | $ (126,400,000) | $ (93,100,000) | ||||||
Adjustment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Net deferred tax liability | 18,600,000 | |||||||||
Adjustment | Additional Paid-in Capital | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Increase (decrease) in stockholders' equity | 77,800,000 | |||||||||
Adjustment | Retained Earnings | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Increase (decrease) in stockholders' equity | (21,400,000) | |||||||||
Fair Value | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Convertible debt, fair value | $ 873,000,000 | $ 1,162,500,000 | ||||||||
US term loan due 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 3 years | |||||||||
Term loan | $ 650,000,000 | |||||||||
Loan facility interest rates | 5.98% | 1.25% | ||||||||
Total debt | $ 650,000,000 | $ 648,300,000 | $ 647,300,000 | |||||||
Debt Issuance Costs | $ 1,700,000 | $ 2,700,000 | ||||||||
Euro term loan due 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 3 years | |||||||||
Term loan | € | € 208,000,000 | € 600,000,000 | ||||||||
Repayment of debt | $ 472,000,000 | |||||||||
Loan facility interest rates | 3.28% | 0.95% | ||||||||
Total debt | $ 222,400,000 | $ 236,100,000 | ||||||||
Debt Issuance Costs | 300,000 | 500,000 | ||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior unsecured revolving credit facility | $ 750,000,000 | $ 250,000,000 | ||||||||
Increase limit of revolving credit facility | 350,000,000 | |||||||||
Cash and cash equivalent threshold | $ 250,000,000 | |||||||||
EBITDA threshold | 0.50 | |||||||||
Payments of debt restructuring costs | $ 2,100,000 | |||||||||
Revolving credit facility maximum borrowing capacity | 750,000,000 | |||||||||
Line of credit facility, outstanding borrowings | 0 | 0 | ||||||||
Revolving Credit Facility | Standby letters of credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit facility maximum borrowing capacity | $ 20,000,000 | |||||||||
Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility fee | 0.09% | |||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility fee | 0.225% | |||||||||
LIBOR | Minimum | Credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Margin spread of variable interest rate | 0.785% | |||||||||
LIBOR | Maximum | Credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Margin spread of variable interest rate | 1.625% | |||||||||
Base Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Margin spread of variable interest rate | 0% | |||||||||
Base Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Margin spread of variable interest rate | 0.625% | |||||||||
Revolving credit facility due 2024 | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 5 years | |||||||||
Convertible Debt | Adjustment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt | 75,000,000 | |||||||||
Unamortized discount (premium), net | 76,500,000 | |||||||||
Debt Issuance Costs | 1,500,000 | |||||||||
Convertible Debt | 2.375% convertible senior notes over allotment option | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term loan | $ 67,500,000 | |||||||||
Convertible Debt | 2.375% convertible senior notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term loan | 517,500,000 | |||||||||
Proceeds from issuance of convertible senior notes | $ 502,600,000 | |||||||||
Interest rate | 2.375% | |||||||||
Conversion price (in USD per share) | $ / shares | $ 21.01 | |||||||||
Total debt | $ 510,000,000 | 432,100,000 | ||||||||
Debt Issuance Costs | $ 7,500,000 | $ 8,900,000 | ||||||||
Redemption price | 100% | |||||||||
Threshold percentage of stock price trigger | 130% | 130% | 130% | |||||||
Convertible debt, trading days (in trading days) | tradingDay | 20 | 20 | 20 | |||||||
Convertible debt, consecutive trading days (in trading days) | tradingDay | 30 | 30 | 30 | |||||||
Effective interest rate | 3% | 7.30% | 3% | |||||||
If-converted value in excess of principal | $ 311,700,000 | $ 592,100,000 | ||||||||
Convertible Debt | 2.375% convertible senior notes, capped calls | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Conversion price (in USD per share) | $ / shares | $ 23.79 | |||||||||
Convertible debt, stock price trigger (in USD per share) | $ / shares | $ 21.01 | |||||||||
Convertible debt, capped calls (in shares) | shares | 2.9 | |||||||||
Convertible debt expense, capped calls | $ 20,700,000 |
Debt And Credit Facilities - In
Debt And Credit Facilities - Interest Expense (Details) - Convertible Debt - 2.375% convertible senior notes - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 12.3 | $ 12.3 |
Amortization of debt issuance costs | 2.9 | 1.9 |
Amortization of debt discount | 0 | 19 |
Total interest expense | $ 15.2 | $ 33.2 |
Debt And Credit Facilities - Un
Debt And Credit Facilities - Unamortized Debt Discount and Issuance Costs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt Issuance Costs | $ 9.5 | $ 12.1 |
Debt Discount | 0 | 76.5 |
Convertible senior notes due 2025 | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs | 7.5 | 8.9 |
Debt Discount | 0 | 76.5 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs | 1.7 | 2.7 |
Debt Discount | 0 | 0 |
Euro Term Loan | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs | 0.3 | 0.5 |
Debt Discount | $ 0 | $ 0 |
Stock Transactions And Stock-_3
Stock Transactions And Stock-Based Compensation (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 23, 2021 USD ($) shares | Sep. 30, 2019 shares | Dec. 31, 2022 USD ($) vote $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2019 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Preferred shares authorized (in shares) | 15,000,000 | 15,000,000 | ||||
Preferred shares outstanding (in shares) | 0 | 0 | ||||
Preferred shares issued (in shares) | 0 | 0 | ||||
Common stock voting rights (in votes per share) | vote | 1 | |||||
Total unrecognized compensation cost related to RSUs/PSUs | $ | $ 43.6 | |||||
Granted (in shares) | 600,000 | 500,000 | 700,000 | |||
Unvested (in shares) | 1,500,000 | 1,700,000 | 1,900,000 | 2,100,000 | ||
Expected forfeiture rate | 6% | 6% | 6% | |||
Period of recognition | 2 years | |||||
Aggregate intrinsic value of options exercised | $ | $ 31 | $ 33 | $ 12 | |||
Employee service share-based compensation, tax benefit from exercise of stock options | $ | $ 7.2 | $ 6.7 | 4.2 | |||
Share withheld (in shares) | 192,400 | 181,700 | ||||
Tax withholding payment related to net settlement of equity awards | $ | $ 9.1 | $ 7.2 | 5 | |||
RSUs / PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee service share-based compensation, tax benefit from exercise of stock options | $ | $ 1 | $ 1 | $ 1 | |||
RSUs / PSUs | Pacific Dental Services | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Total unrecognized compensation cost related to RSUs/PSUs | $ | $ 12.5 | |||||
Granted (in shares) | 273,522 | |||||
Unvested (in shares) | 273,522 | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividend yield | 0% | 0% | 0% | |||
Employee service share-based compensation, tax benefit from exercise of stock options | $ | $ 4 | $ 4 | $ 1 | |||
2019 Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized under the Stock Plan (in shares) | 21,000,000 | |||||
Award expiration period | 10 years | |||||
2019 Omnibus Incentive Plan | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
2019 Omnibus Incentive Plan | Minimum | RSUs / PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
2019 Omnibus Incentive Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years | |||||
2019 Omnibus Incentive Plan | Maximum | RSUs / PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years |
Stock Transactions And Stock-_4
Stock Transactions And Stock-Based Compensation - Summary of Share Activity (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning of period, common stock (in shares) | 161,600,000 | ||
End of period, common stock (in shares) | 163,200,000 | 161,600,000 | |
Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning of period, common stock (in shares) | 162,000,000 | 160,200,000 | 158,700,000 |
Issuance of common stock (in shares) | 1,700,000 | 1,800,000 | 1,500,000 |
End of period, common stock (in shares) | 163,700,000 | 162,000,000 | 160,200,000 |
Stock Transactions And Stock-_5
Stock Transactions And Stock-Based Compensation - Assumptions Used To Value Options Granted (Details) - Stock options | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average volatility | 33.60% | 25.30% | 25.30% |
Dividend yield | 0% | 0% | 0% |
Expected years until exercise | 6 years | 6 years | 6 years |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.90% | 1% | 0.40% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 3.10% | 1.30% | 1.20% |
Stock Transactions And Stock-_6
Stock Transactions And Stock-Based Compensation - Components of Stock-Based Compensation Program (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 30.5 | $ 27.7 | $ 22.2 |
RSUs / PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 19.3 | 15.5 | 13.3 |
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 11.2 | $ 12.2 | $ 8.9 |
Stock Transactions And Stock-_7
Stock Transactions And Stock-Based Compensation - Option Activity Under The Company's Stock Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Stock Options | |||
Outstanding at beginning of year (in shares) | 7.9 | 8.1 | 8 |
Granted (in shares) | 0.5 | 1.7 | 2.2 |
Exercised (in shares) | (1.2) | (1.3) | (1) |
Cancelled/forfeited (in shares) | (0.7) | (0.6) | (1.1) |
Outstanding at end of year (in shares) | 6.5 | 7.9 | 8.1 |
Vested and expected to vest at end of year (in shares) | 6.3 | ||
Vested at end of year (in shares) | 3.2 | ||
Weighted Average Exercise Price | |||
Outstanding as of beginning of year (in USD per share) | $ 24.16 | $ 20.08 | $ 17.81 |
Granted (in USD per share) | 48.23 | 38.15 | 26.14 |
Exercised (in USD per share) | 18.61 | 15.74 | 14.01 |
Cancelled/forfeited (in USD per share) | 30.29 | 26.74 | 21.17 |
Outstanding as of end of year (in USD per share) | 26.24 | $ 24.16 | $ 20.08 |
Vested and expected to vest at end of year (in USD per share) | 26.09 | ||
Vested at end of year (in USD per share) | $ 22.01 | ||
Weighted Average Remaining Contractual Term (in years) | |||
Outstanding at end of year | 6 years 3 months 18 days | ||
Vested and expected to vest at end of year | 6 years 3 months 18 days | ||
Vested at end of year | 5 years 4 months 24 days | ||
Aggregate Intrinsic Value | |||
Outstanding at end of year | $ 59.7 | ||
Vested and expected to vest at end of year | 58.8 | ||
Vested at end of year | $ 39.3 |
Stock Transactions And Stock-_8
Stock Transactions And Stock-Based Compensation - Summary Of Options Outstanding (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
$9.74 to 12.65 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price, lower limit (in USD per share) | $ 9.74 |
Exercise price, upper limit (in USD per share) | $ 12.65 |
Outstanding, shares (in shares) | shares | 0.4 |
Outstanding, average exercise price (in USD per share) | $ 12 |
Outstanding, average remaining life (in years) | 2 years 4 months 24 days |
Exercisable, shares (in shares) | shares | 0.4 |
Exercisable, average exercise price (in USD per share) | $ 12 |
$12.66 to 19.22 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price, lower limit (in USD per share) | 12.66 |
Exercise price, upper limit (in USD per share) | $ 19.22 |
Outstanding, shares (in shares) | shares | 1.6 |
Outstanding, average exercise price (in USD per share) | $ 17.95 |
Outstanding, average remaining life (in years) | 4 years 9 months 18 days |
Exercisable, shares (in shares) | shares | 1.3 |
Exercisable, average exercise price (in USD per share) | $ 17.66 |
$19.23 to 26.50 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price, lower limit (in USD per share) | 19.23 |
Exercise price, upper limit (in USD per share) | $ 26.50 |
Outstanding, shares (in shares) | shares | 2.7 |
Outstanding, average exercise price (in USD per share) | $ 24.15 |
Outstanding, average remaining life (in years) | 6 years 6 months |
Exercisable, shares (in shares) | shares | 1 |
Exercisable, average exercise price (in USD per share) | $ 24.10 |
$26.51 to $41.95 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price, lower limit (in USD per share) | 26.51 |
Exercise price, upper limit (in USD per share) | $ 41.95 |
Outstanding, shares (in shares) | shares | 1.4 |
Outstanding, average exercise price (in USD per share) | $ 36.74 |
Outstanding, average remaining life (in years) | 7 years 10 months 24 days |
Exercisable, shares (in shares) | shares | 0.5 |
Exercisable, average exercise price (in USD per share) | $ 35.85 |
$41.96 to 48.52 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price, lower limit (in USD per share) | 41.96 |
Exercise price, upper limit (in USD per share) | $ 48.52 |
Outstanding, shares (in shares) | shares | 0.4 |
Outstanding, average exercise price (in USD per share) | $ 48.01 |
Outstanding, average remaining life (in years) | 8 years 10 months 24 days |
Exercisable, shares (in shares) | shares | 0 |
Exercisable, average exercise price (in USD per share) | $ 43.30 |
Stock Transactions And Stock-_9
Stock Transactions And Stock-Based Compensation - Summary Of Unrecognized RSU And PRU Activity (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of RSUs/PSUs | |||
Unvested at beginning of year (in shares) | 1.7 | 1.9 | 2.1 |
Granted (in shares) | 0.6 | 0.5 | 0.7 |
Vested (in shares) | (0.5) | (0.5) | (0.5) |
Forfeited (in shares) | (0.3) | (0.2) | (0.4) |
Unvested at end of year (in shares) | 1.5 | 1.7 | 1.9 |
Weighted Average Grant-Date Fair Value | |||
Unvested at beginning of year (in USD per share) | $ 26.82 | $ 22.01 | $ 19.60 |
Grant (in USD per share) | 47.80 | 38.76 | 25.76 |
Vested (in USD per share) | 24.85 | 20.34 | 17.87 |
Forfeited (in USD per share) | 33.62 | 26.54 | 20.98 |
Unvested at end of year (in USD per share) | $ 34.85 | $ 26.82 | $ 22.01 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 4,058 | ||
Total other comprehensive (loss) income, net of income taxes | (81.6) | $ (51.7) | $ 52.4 |
Balance, end of period | 4,206.9 | 4,058 | |
Accumulated Other Comprehensive Loss | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (143.5) | (91.8) | (144.2) |
(Decrease) increase before reclassifications | (53.7) | (44.7) | 21.5 |
Income tax impact | (26.1) | (23.2) | 28.8 |
Other comprehensive (loss) income before reclassifications, net of income taxes | (79.8) | (67.9) | 50.3 |
Increase | (2.3) | 20.9 | 2.9 |
Income tax impact | 0.5 | (4.7) | (0.8) |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | (1.8) | 16.2 | 2.1 |
Total other comprehensive (loss) income, net of income taxes | (81.6) | (51.7) | 52.4 |
Balance, end of period | (225.1) | (143.5) | (91.8) |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (139.6) | (62.5) | (116.4) |
(Decrease) increase before reclassifications | (80.5) | (72.7) | 26 |
Income tax impact | (20.4) | (17) | 27.9 |
Other comprehensive (loss) income before reclassifications, net of income taxes | (100.9) | (89.7) | 53.9 |
Increase | 0 | 15.9 | 0 |
Income tax impact | 0 | (3.3) | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | 0 | 12.6 | 0 |
Total other comprehensive (loss) income, net of income taxes | (100.9) | (77.1) | 53.9 |
Balance, end of period | (240.5) | (139.6) | (62.5) |
Unrealized Loss on Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (1.7) | (6.3) | 0.1 |
(Decrease) increase before reclassifications | 2.2 | 6.1 | (8.4) |
Income tax impact | (0.5) | (1.5) | 2 |
Other comprehensive (loss) income before reclassifications, net of income taxes | 1.7 | 4.6 | (6.4) |
Increase | 0 | 0 | 0 |
Income tax impact | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | 0 | 0 | 0 |
Total other comprehensive (loss) income, net of income taxes | 1.7 | 4.6 | (6.4) |
Balance, end of period | 0 | (1.7) | (6.3) |
Unrealized Pension Costs | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (2.2) | (23) | (27.9) |
(Decrease) increase before reclassifications | 24.6 | 21.9 | 3.9 |
Income tax impact | (5.2) | (4.7) | (1.1) |
Other comprehensive (loss) income before reclassifications, net of income taxes | 19.4 | 17.2 | 2.8 |
Increase | (2.3) | 5 | 2.9 |
Income tax impact | 0.5 | (1.4) | (0.8) |
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | (1.8) | 3.6 | 2.1 |
Total other comprehensive (loss) income, net of income taxes | 17.6 | 20.8 | 4.9 |
Balance, end of period | $ 15.4 | $ (2.2) | $ (23) |
Revenue - Disaggregation by Rev
Revenue - Disaggregation by Revenue Type and Geographical Region (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 2,569.1 | $ 2,508.9 | $ 1,929.1 |
Consumables | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 2,147.5 | 2,067.9 | 1,590.7 |
Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 421.6 | 441 | 338.4 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,366.4 | 1,328.2 | |
Western Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 510 | 492.5 | |
Other developed markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 129.6 | 139.4 | |
Emerging markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 563.1 | 548.8 | |
Specialty Products & Technologies | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,598.6 | 1,507.8 | 1,117.3 |
Specialty Products & Technologies | North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 711.1 | 668.9 | |
Specialty Products & Technologies | Western Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 388.9 | 366.6 | |
Specialty Products & Technologies | Other developed markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 91 | 98.2 | |
Specialty Products & Technologies | Emerging markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 407.6 | 374.1 | |
Equipment & Consumables | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 970.5 | 1,001.1 | $ 811.8 |
Equipment & Consumables | North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 655.3 | 659.3 | |
Equipment & Consumables | Western Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 121.1 | 125.9 | |
Equipment & Consumables | Other developed markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 38.6 | 41.2 | |
Equipment & Consumables | Emerging markets | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 155.5 | $ 174.7 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 52.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 12 months |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Contract liability | $ 87.5 | $ 65.2 | |
Revenue recognized | $ 52.8 | $ 38.4 | |
Revenue Benchmark | Customer Concentration Risk | Largest customer | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 11% | 12% | 11% |
Restructuring Activities And _3
Restructuring Activities And Related Impairments - Schedule Of Restructuring And Related Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of year | $ 21.9 |
Costs incurred | 26.5 |
Paid/settled | (29.5) |
Balance at end of year | 18.9 |
Employee Severance and Related | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of year | 21.4 |
Costs incurred | 20.8 |
Paid/settled | (24) |
Balance at end of year | 18.2 |
Facility Exit and Related | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of year | 0.5 |
Costs incurred | 5.7 |
Paid/settled | (5.5) |
Balance at end of year | $ 0.7 |
Restructuring Activities And _4
Restructuring Activities And Related Impairments - Schedule Of Restructuring And Other Related Charges By Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | $ 37.6 | $ 63.6 | $ 84.4 |
Specialty Products & Technologies | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | 14.7 | 25.2 | 43.8 |
Equipment & Consumables | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | 19.7 | 32.1 | 34.6 |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | $ 3.2 | $ 6.3 | $ 6 |
Restructuring Activities And _5
Restructuring Activities And Related Impairments - Schedule Of Restructuring Reserve By Type Of Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | $ 37.6 | $ 63.6 | $ 84.4 |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | 13.6 | 35.9 | 18.3 |
Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred | $ 24 | $ 27.7 | $ 66.1 |
Restructuring Activities And _6
Restructuring Activities And Related Impairments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Inventory write-off | $ 4.7 | $ 10.8 | $ 11.1 |
Consolidation of facilities | Disposal by abandonment | |||
Restructuring Cost and Reserve [Line Items] | |||
Non-cash loss | 11.1 | 29.8 | |
Asset impairment charges | 4.8 | 19 | |
Inventory write-off | $ 4.7 | $ 10.8 |
Income Taxes - Earnings From Co
Income Taxes - Earnings From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings from continuing operations before income taxes | $ 283.9 | $ 254.5 | $ (20) |
United States | |||
Earnings from continuing operations before income taxes | 21.9 | 35 | (64.3) |
International | |||
Earnings from continuing operations before income taxes | $ 262 | $ 219.5 | $ 44.3 |
Income Taxes - Provision For In
Income Taxes - Provision For Income Taxes From Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal U.S. | $ 42.5 | $ 17.7 | $ 13.1 |
Non-U.S. | 22.4 | 26.9 | 13.5 |
State and local | 8.6 | 4.4 | 0.9 |
Deferred: | |||
Federal U.S. | (31.3) | (2.2) | (13.1) |
Non-U.S. | 11.3 | (57.5) | (72.7) |
State and local | (7.6) | 1.7 | (4.2) |
Income tax provision (benefit) | $ 45.9 | $ (9) | $ (62.5) |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets And Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Inventories | $ 15.4 | $ 17.4 |
Pension benefits | 6.2 | 11.5 |
Other accruals and prepayments | 45.3 | 54.3 |
Lease liabilities | 35.5 | 34.2 |
Stock-based compensation expense | 7.5 | 6.8 |
Interest expense | 36 | 8.7 |
Capitalized research expenses | 15.1 | 3.8 |
Tax credit and loss carryforwards | 38.2 | 117.3 |
Valuation allowances | (38.7) | (90) |
Total deferred tax asset | 160.5 | 164 |
Deferred tax liabilities: | ||
Property, plant and equipment | (5.7) | (9.6) |
Unrealized gains and losses | (6.2) | (6.5) |
Right-of-use assets | (31.5) | (30.3) |
Goodwill and other intangible assets | (92.2) | (192.3) |
Total deferred tax liability | (135.6) | (238.7) |
Net deferred tax assets | $ 24.9 | |
Net deferred tax liabilities | $ (74.7) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||||
Net deferred tax liabilities | $ 74.7 | |||
Net deferred tax assets | $ 24.9 | |||
Decrease in valuation allowance | 51.3 | |||
Decrease in deferred tax liability | 100.2 | |||
Employee service share-based compensation, tax benefit from exercise of stock options | 7.2 | 6.7 | $ 4.2 | |
Excess tax benefit from share-based compensation, operating activities | 4.6 | 4.8 | 2.3 | |
Net operating loss carryforwards | 35.5 | |||
Operating loss carryforwards, valuation allowances | 29.1 | |||
Gross unrecognized tax benefits | 6.6 | 5.7 | 7.1 | $ 9.1 |
Recognized potential interest and penalties | 0.6 | (0.1) | $ 0 | |
Unrecognized tax benefits that would impact effective tax rate | 9.2 | |||
Estimated reduction in unrecognized tax benefits within twelve months | 2.7 | |||
Continuing operations | ||||
Income Tax Contingency [Line Items] | ||||
Gross unrecognized tax benefits | 6.6 | 5.7 | ||
Unrecognized tax benefits, net of offsetting indirect tax benefits | 9.2 | 7.6 | ||
Potential interest and penalties | 2.6 | 1.9 | ||
Danaher | United States | ||||
Income Tax Contingency [Line Items] | ||||
Net deferred tax liabilities | 15.1 | 133 | ||
Danaher | Foreign tax | ||||
Income Tax Contingency [Line Items] | ||||
Net deferred tax assets | $ 40 | $ 58.5 |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of The Statutory Federal Income Tax Rate To The Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21% | 21% | 21% |
Increase (decrease) in tax rate resulting from: | |||
State income taxes (net of federal income tax benefit) | 0.30% | 1.20% | 17% |
Impact of foreign operations | (5.00%) | (6.40%) | 80.40% |
Foreign-Derived Intangible Income (“FDII”) | (0.70%) | 0% | 0% |
Subpart F and GILTI, net of foreign tax credits | 6.70% | 6.40% | (72.40%) |
Change in uncertain tax positions | (0.50%) | 0% | 3.40% |
Research and experimentation credits and other | (1.60%) | (1.60%) | 13.20% |
Permanent differences and other | (0.90%) | 2.70% | (20.30%) |
Excess tax benefit from stock-based compensation | (1.60%) | (1.90%) | 11.60% |
Valuation allowance release on certain Swiss NOLs | 0% | (8.10%) | 0% |
Impact of step-up of Swiss assets | (1.50%) | (16.80%) | 258.60% |
Effective income tax rate | 16.20% | (3.50%) | 312.50% |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 5.7 | $ 7.1 | $ 9.1 |
Additions based on tax positions related to the current year | 0.3 | 0.3 | 0.3 |
Additions for tax positions of prior years | 4.2 | 0 | 0.3 |
Reductions for tax positions of prior years | 0 | (0.3) | (1.7) |
Lapse of statute of limitations | (2.3) | (1) | (1) |
Settlements | (1.1) | (0.4) | 0 |
Effect of foreign currency translation | (0.2) | 0 | 0.1 |
Unrecognized tax benefits, end of year | $ 6.6 | $ 5.7 | $ 7.1 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | May 21, 2020 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Conversion price (in USD per share) | $ 21.01 | $ 21.01 | |
2.375% convertible senior notes | Convertible Debt | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Conversion price (in USD per share) | $ 21.01 | ||
Dilution threshold (in USD per share) | $ 23.79 |
Earnings Per Share - Components
Earnings Per Share - Components of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Numerator: | ||||
Income from continuing operations, net of tax | $ 238 | $ 263.5 | $ 42.5 | |
Income (loss) from discontinued operations, net of tax | 5.1 | 77 | (9.2) | |
Net income | $ 243.1 | $ 340.5 | $ 33.3 | |
Denominator: | ||||
Weighted-average common shares outstanding used in basic earnings per share (in shares) | 162.9 | 161.2 | 159.6 | |
Assumed exercise of dilutive options and vesting of dilutive restricted stock units (in shares) | 3.2 | 4.4 | 2.2 | |
Assumed conversion of the Notes (in shares) | 11.5 | 12 | 2.3 | |
Weighted average common shares outstanding used in diluted earnings (loss) per share (in shares) | 177.6 | 177.6 | 164.1 | |
Earnings per share: | ||||
Earnings from continuing operations - basic (in USD per share) | $ 1.46 | $ 1.63 | $ 0.27 | |
Earnings from continuing operations - diluted (in USD per share) | 1.34 | 1.48 | 0.26 | |
Earnings (loss) from discontinued operations - basic (in USD per share) | 0.03 | 0.48 | (0.06) | |
Earnings (loss) from discontinued operations - diluted (in USD per share) | 0.03 | 0.43 | (0.06) | |
Earnings - basic (in USD per share) | 1.49 | 2.11 | 0.21 | |
Earnings - diluted (in USD per share) | [1] | $ 1.37 | $ 1.92 | $ 0.20 |
[1]* Earnings per share is computed independently for earnings per share from continuing operations and earnings per share from discontinued operations. The sum of earnings per share from continuing operations and earnings per share from discontinued operations does not equal earnings per share due to rounding. |
Earnings Per Share - Securities
Earnings Per Share - Securities Not Included in the Computation of Diluted Loss Income per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-based awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted (loss) income per share (in shares) | 1.5 | 1.2 | 4.1 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (in segments) | 2 |
Number of operating segments (in segments) | 2 |
Segment Information - Segment R
Segment Information - Segment Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 2,569.1 | $ 2,508.9 | $ 1,929.1 |
Operating profit (loss) | 319.2 | 306.2 | 43.5 |
Other income (expense) | 3.1 | 2.4 | (1) |
Interest expense, net | (38.4) | (54.1) | (62.5) |
Income (loss) before income taxes | 283.9 | 254.5 | (20) |
Depreciation and amortization | 137.8 | 117.8 | 121.7 |
Capital expenditures, gross | 72.1 | 49.1 | 43.9 |
Identifiable assets | 6,587 | 6,574.2 | |
Held for sale | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 0 | 12.2 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | (121.8) | (119.9) | (75.9) |
Depreciation and amortization | 2.5 | 2.4 | 2.4 |
Capital expenditures, gross | 2.7 | 1.3 | 1.7 |
Identifiable assets | 656 | 1,117.7 | |
Specialty Products & Technologies | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,598.6 | 1,507.8 | 1,117.3 |
Specialty Products & Technologies | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | 268.6 | 272.3 | 65.8 |
Depreciation and amortization | 80.7 | 84 | 80.6 |
Capital expenditures, gross | 48.8 | 37.2 | 36.4 |
Identifiable assets | 3,475.7 | 3,498.2 | |
Equipment & Consumables | |||
Segment Reporting Information [Line Items] | |||
Sales | 970.5 | 1,001.1 | 811.8 |
Equipment & Consumables | Operating segments | |||
Segment Reporting Information [Line Items] | |||
Operating profit (loss) | 172.4 | 153.8 | 53.6 |
Depreciation and amortization | 54.6 | 31.4 | 38.7 |
Capital expenditures, gross | 20.6 | 10.6 | $ 5.8 |
Identifiable assets | $ 2,455.3 | $ 1,946.1 |
Segment Information - Schedule
Segment Information - Schedule Of Operations In Geographical Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 2,569.1 | $ 2,508.9 | $ 1,929.1 |
Property, plant and equipment, net | 293.6 | 264.1 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,261.9 | 1,223.4 | 960.1 |
Property, plant and equipment, net | 183.4 | 157.1 | |
China | |||
Segment Reporting Information [Line Items] | |||
Sales | 222.2 | 236.7 | 198.2 |
Sweden | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 41.4 | 49 | |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 15.2 | 8.8 | |
All other (each country individually less than 5% of total long-lived assets) | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,085 | 1,048.8 | $ 770.8 |
Property, plant and equipment, net | $ 53.6 | $ 49.2 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 20.7 | $ 30.5 | $ 18.7 |
Charged to Costs & Expenses | 4.8 | 4.7 | 19.2 |
Impact of Currency | (0.8) | (1.5) | 0.3 |
Write Offs, Write Downs & Deductions | (4.1) | (7.3) | (7.7) |
Recoveries | (4.4) | (5.7) | 0 |
Balance at End of Period | $ 16.2 | $ 20.7 | $ 30.5 |