1000 - CONSOLIDATED CONDENSED S
1000 - CONSOLIDATED CONDENSED STATEMENTS OF INCOME (USD $) | ||||
In Thousands, except Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Net sales | $553,216 | $594,847 | $1,060,165 | $1,155,629 |
Cost of products sold | 266,245 | 279,361 | 506,225 | 554,900 |
Gross profit | 286,971 | 315,486 | 553,940 | 600,729 |
Selling, general and administrative expenses | 185,138 | 200,867 | 364,366 | 384,869 |
Restructuring, impairments and other costs (Note 9) | 3,125 | 1,458 | 4,695 | 1,662 |
Operating income | 98,708 | 113,161 | 184,879 | 214,198 |
Other income and expenses: | ||||
Interest expense | 5,268 | 7,901 | 11,421 | 16,153 |
Interest income | (1,512) | (4,685) | (3,468) | (9,895) |
Other (income) expense, net | (68) | (51) | 846 | 3,071 |
Income before income taxes | 95,020 | 109,996 | 176,080 | 204,869 |
Provision for income taxes | 24,440 | 31,297 | 45,571 | 58,015 |
Net income | 70,580 | 78,699 | 130,509 | 146,854 |
Less: Net gain (loss) attributable to the noncontrolling interests | 381 | 51 | (1,433) | 26 |
Net income attributable to DENTSPLY International | $70,199 | $78,648 | $131,942 | $146,828 |
Earnings per common share | ||||
-Basic | 0.47 | 0.53 | 0.89 | 0.98 |
-Diluted | 0.47 | 0.52 | 0.88 | 0.96 |
Cash dividends declared per common share | 0.05 | 0.045 | 0.1 | 0.09 |
Weighted average common shares outstanding | ||||
-Basic | 148,577 | 148,851 | 148,546 | 149,394 |
-Diluted | 150,057 | 151,790 | 149,822 | 152,371 |
2000 - CONSOLIDATED CONDENSED B
2000 - CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) | ||
In Thousands | 6 Months Ended
Jun. 30, 2009 | 12 Months Ended
Dec. 31, 2008 |
Current Assets: | ||
Cash and cash equivalents | $251,871 | $203,991 |
Short-term investments | 36 | 258 |
Accounts and notes receivables-trade, net (Note 1) | 357,546 | 319,260 |
Inventories, net (Note 7) | 309,431 | 306,125 |
Prepaid expenses and other current assets | 113,621 | 120,228 |
Total Current Assets | 1,032,505 | 949,862 |
Property, plant and equipment, net | 429,935 | 432,276 |
Identifiable intangible assets, net | 122,696 | 103,718 |
Goodwill, net | 1,267,898 | 1,277,026 |
Other noncurrent assets, net | 45,445 | 67,518 |
Total Assets | 2,898,479 | 2,830,400 |
Current Liabilities: | ||
Accounts payable | 93,420 | 104,329 |
Accrued liabilities | 207,430 | 193,660 |
Income taxes payable | 15,737 | 36,178 |
Notes payable and current portion of long-term debt (Note 13) | 273,906 | 25,795 |
Total Current Liabilities | 590,493 | 359,962 |
Long-term debt (Note 13) | 145,949 | 423,679 |
Deferred income taxes | 70,508 | 69,049 |
Other noncurrent liabilities | 287,407 | 318,297 |
Total Liabilities | 1,094,357 | 1,170,987 |
Commitments and contingencies (Note 14) | - | - |
Stockholders' Equity: | ||
Preferred stock, $.01 par value; .25 million shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value; 200 million shares authorized; 162.8 million shares issued at June 30, 2009 and December 31, 2008 | 1,628 | 1,628 |
Capital in excess of par value | 192,501 | 187,154 |
Retained earnings | 1,955,977 | 1,838,958 |
Accumulated other comprehensive income (Note 3) | 58,277 | 39,612 |
Treasury stock, at cost, 14.2 million shares at June 30, 2009 and 14.2 million shares at December 31, 2008 | (475,765) | (479,630) |
Total DENTSPLY International Stockholders' Equity | 1,732,618 | 1,587,722 |
Noncontrolling interests | 71,504 | 71,691 |
Total Stockholders' Equity | 1,804,122 | 1,659,413 |
Total Liabilities and Stockholders' Equity | $2,898,479 | $2,830,400 |
2100 - Parenthetical Data For C
2100 - Parenthetical Data For Consolidated Condensed Balance Sheets (USD $) | ||
Share data in Millions, except Per Share data | Jun. 30, 2009
| Dec. 31, 2008
|
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | 0.01 | 0.01 |
Preferred stock, shares authorized (in shares) | 0.25 | 0.25 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollar per share) | 0.01 | 0.01 |
Common stock, share authorized (in shares) | 200 | 200 |
Common stock, shares issued (in shares) | 162.8 | 162.8 |
Treasury stock, shares (in shares) | 14.2 | 14.2 |
3000 - CONSOLIDATED CONDENSED S
3000 - CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) | ||
In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Cash flows from operating activities: | ||
Net income | $130,509 | $146,854 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 26,373 | 23,943 |
Amortization | 6,574 | 4,363 |
Deferred income taxes | 4,379 | 18,542 |
Share-based compensation expense | 9,723 | 8,404 |
Restructuring, impairments and other costs | 3,039 | 1,127 |
Stock option income tax benefit | (2,003) | (2,008) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts and notes receivable-trade, net | (34,458) | (49,711) |
Inventories, net | 2,291 | (10,283) |
Prepaid expenses and other current assets | 4,124 | (5,314) |
Accounts payable | (11,257) | 9,179 |
Accrued liabilities | (12,972) | (62) |
Income tax payable | (9,878) | (9,754) |
Other, net | (1,085) | 3,745 |
Net cash provided by operating activities | 115,360 | 139,025 |
Cash flows from investing activities: | ||
Capital expenditures | (24,957) | (36,574) |
Cash paid for acquisitions of businesses and equity investment, net of cash acquired | (2,986) | (2,415) |
Purchases of short-term investments | 0 | (147,434) |
Liquidation of short-term investments | 214 | 12 |
Expenditures for identifiable intangible assets | 1,258 | 2,191 |
Proceeds from sale of property, plant and equipment, net | 998 | 799 |
Net cash used in investing activities | (27,989) | (187,803) |
Cash flows from financing activities: | ||
Net change in short-term borrowings | 36,342 | 3,488 |
Cash paid for treasury stock | (9,778) | (95,467) |
Cash dividends paid | (14,919) | (13,517) |
Proceeds from long-term borrowings | 0 | 77,799 |
Payments on long-term borrowings | (55,140) | 0 |
Proceeds from exercise of stock options | 5,850 | 5,741 |
Excess tax benefits from share-based compensation | 2,003 | 2,008 |
Net cash used in financing activities | (35,642) | (19,948) |
Effect of exchange rate changes on cash and cash equivalents | (3,848) | 12,796 |
Net increase (decrease) in cash and cash equivalents | 47,880 | (55,930) |
Cash and cash equivalents at beginning of period | 203,991 | 169,384 |
Cash and cash equivalents at end of period | $251,871 | $113,454 |
4000 - CONSOLIDATED STATEMENT O
4000 - CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) | ||
In Thousands | 6 Months Ended
Jun. 30, 2009 | 12 Months Ended
Dec. 31, 2008 |
Balance, Beginning | $1,659,413 | $1,516,402 |
Purchase of subsidiary shares from noncontrolling shareholder | 0 | 71,931 |
Net income | 130,509 | 283,270 |
Foreign currency translation adjustment | 11,152 | (71,458) |
Net loss on derivative financial instruments | 7,631 | (13,986) |
Unrecognized losses and prior service cost, net | 1,128 | (20,700) |
Comprehensive Income | 150,420 | 177,126 |
Exercise of stock options | 5,850 | 12,726 |
Tax benefit from stock options exercised | (2,003) | 3,910 |
Share based compensation expense | 9,723 | 17,290 |
Funding of Employee Stock Option Plan | 1,346 | 180 |
Treasury shares purchased | (9,778) | (112,634) |
Cash dividends | (14,855) | (27,518) |
Balance, Ending | 1,804,122 | 1,659,413 |
Common Stock | ||
Balance, Beginning | 1,628 | 1,628 |
Balance, Ending | 1,628 | |
Capital in Excess of Par Value | ||
Balance, Beginning | 187,154 | 173,084 |
Exercise of stock options | (6,386) | (7,268) |
Tax benefit from stock options exercised | 2,003 | 3,910 |
Share based compensation expense | 9,723 | 17,290 |
RSU dividends | 68 | 76 |
Funding of Employee Stock Option Plan | (61) | 62 |
Balance, Ending | 192,501 | 187,154 |
Retained Earnings | ||
Balance, Beginning | 1,838,958 | 1,582,683 |
Net income | 131,942 | 283,869 |
RSU dividends | (68) | (76) |
Cash dividends | (14,855) | (27,518) |
Balance, Ending | 1,955,977 | 1,838,958 |
Accumulated Other Comprehensive Income (Loss) | ||
Balance, Beginning | 39,612 | 145,819 |
Foreign currency translation adjustment | 9,907 | (71,521) |
Net loss on derivative financial instruments | 7,631 | (13,986) |
Unrecognized losses and prior service cost, net | 1,127 | (20,700) |
Balance, Ending | 58,277 | 39,612 |
Treasury Stock | ||
Balance, Beginning | (479,630) | (387,108) |
Exercise of stock options | 12,236 | 19,994 |
Funding of Employee Stock Option Plan | 1,407 | 118 |
Treasury shares purchased | (9,778) | (112,634) |
Balance, Ending | (475,765) | (479,630) |
Total Dentsply International Stockholders Equity | ||
Balance, Beginning | 1,587,722 | 1,516,106 |
Net income | 131,942 | 283,869 |
Foreign currency translation adjustment | 9,907 | (71,521) |
Net loss on derivative financial instruments | 7,631 | (13,986) |
Unrecognized losses and prior service cost, net | 1,127 | (20,700) |
Comprehensive Income | 150,607 | 177,662 |
Exercise of stock options | 5,850 | 12,726 |
Tax benefit from stock options exercised | 2,003 | 3,910 |
Share based compensation expense | 9,723 | 17,290 |
Funding of Employee Stock Option Plan | 1,346 | 180 |
Treasury shares purchased | (9,778) | (112,634) |
Cash dividends | (14,855) | (27,518) |
Balance, Ending | 1,732,618 | 1,587,722 |
Noncontrolling Interest | ||
Balance, Beginning | 71,691 | 296 |
Purchase of subsidiary shares from noncontrolling shareholder | 0 | 71,931 |
Net income | (1,433) | (599) |
Foreign currency translation adjustment | 1,245 | 63 |
Unrecognized losses and prior service cost, net | 1 | |
Comprehensive Income | (187) | (536) |
Balance, Ending | $71,504 | $71,691 |
6000 - SIGNIFICANT ACCOUNTING P
6000 - SIGNIFICANT ACCOUNTING POLICIES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES The accounting policies of DENTSPLY International Inc., as applied in the consolidated interim financial statements presented herein, are substantially the same as presented on pages 52 through 58 of the Annual Report Form 10-K/A for the fiscal year ended December 31, 2008, except as indicated below: Accounts and Notes Receivable-Trade, Net Accounts and notes receivables trade, net are stated net of allowances for doubtful accounts and trade discounts, which were $22.1 million and $19.4 million at June 30, 2009 and December 31, 2008, respectively. Business Acquisitions In December 2007, the FASB issued Statement of Financial Accounting Standards No. 141(R) (SFAS 141(R)), Business Combinations. It requires the acquiring entity in a business combination to recognize all assets acquired and liabilities assumed in the transaction, establishes the acquisition-date fair value as the measurement objectivefor all assets acquired and liabilities assumed, and requires the acquirer to disclose the nature and financial effect of the business combination. SFAS 141(R) is effective for fiscal years beginning after December 15, 2008. The Company has adopted SFAS 141(R) in the first quarter of fiscal year 2009. On April 1, 2009, the FASB issued FASB Staff Position (FSP) No. SFAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business Combination that Arise from Contingencies, which amends and clarifies SFAS 141(R) to address application issues raised by preparers, auditors and members of the legal profession on initialrecognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination.The FSP is effective for fiscal years ending after December 15, 2008.The Company has adopted the FSP in the first quarter of fiscal year 2009, and as of June 30, 2009, the implementation did not impact the Companys net income attributable to DENTSPLY International. Noncontrolling Interests In December 2007, the FASB issued Statement of Financial Accounting Standards No. 160 (SFAS 160), Noncontrolling Interests (NCI) in Consolidated Financial Statements. This statement amends Accounting Research Bulletin No. 51, Consolidated Financial Statements, to establish accounting and reporting standards for the noncontrollinginterest in a subsidiary and for the deconsolidation of a subsidiary. The Company adopted SFAS 160 on January 1, 2009 and retrospectively reclassed NCI to equity in the Condensed Balance Sheet, retrospectively included NCI in consolidated net income and consolidated comprehensive income, and provided other applicable disclosures.The implementation of SFAS 160 did not impact the Companys net income attributable to DENTSPLY International in the current or prior periods. Fair Value Measurement In February2008, the FASB issued FASB Staff Position No. SFAS 157-2, Effective Date of FASB Statement No.157, which amends SFAS 157 by delaying its effective date by one year for non-financial assets and non-financial liabilities, except for items that are recognized or disclosedat fair value in the financia |
6010 - STOCK COMPENSATION
6010 - STOCK COMPENSATION | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
STOCK COMPENSATION | |
STOCK COMPENSATION | NOTE 2 STOCK COMPENSATION The Company maintains the 2002 Equity Incentive Plan (the Plan) under which it may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units (RSU) and stock appreciation rights, collectively referred to as Awards.Awards are granted at exercise prices that are equal to the closing stock price on the date of grant.The Company authorizes grants of 14,000,000 shares of common stock, plus any unexercised portion of cancelled or terminated stock options granted under the DENTSPLY International Inc. 1993, 1998, and 2002 Plans, subject to adjustment as follows:each January, if 7% of the total outstanding common shares of the Company exceed 14,000,000, the excess becomes available for grant under the Plan.No more than 2,000,000 shares may be awarded as restrictedstock and restricted stock units, and no key employee may be granted restricted stock units in excess of 150,000 shares of common stock in any calendar year. Stock options generally expire ten years after the date of grant under these plans and grants become exercisable over a period of three years after the date of grant at the rate of one-third per year, except when they become immediately exercisable upon death, disability or qualified retirement.Restricted stockunits vest 100% on the third anniversary of the date of grant and are subject to a service condition, which requires grantees to remain employed by the Company during the three year period following the date of grant.In addition to the service condition, certain key executives are subject to performance requirements. It is the Companys practice to issue shares from treasury stock when options are exercised. Under SFAS 123(R), the Company continues to use the Black-Scholes option-pricing model to estimate the fair value of the non-qualified stock options. The assumptions used to calculate the fair value of the awards granted are evaluated and revised, as necessary, to reflect market conditions and the Companys experience. The following table represents total stock based compensation expense and the tax related benefit for the three and six months ended June 30, 2009 and 2008: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in millions) Stock option expense $ 3.0 $ 2.9 $ 5.9 $ 5.7 RSU expense 1.7 1.1 3.2 2.1 Total stock based compensation expense $ 4.7 $ 4.0 $ 9.1 $ 7.8 Total related tax benefit $ 1.5 $ 0.7 $ 2.6 $ 1.8 The remaining unamortized compensation cost related to non-qualified stock options is $19.3 million, which will be expensed over the weighted average remaining vesting period of the options, or 1.5 years.The unamortized compensation cost related to RSUs is $12.3 million, which will be expensed over the remaining restrictedperiod of the RSUs, or 1.7 years. The following table reflects the non-qualified stock options transactions from December 31, 2008 through June 30, 2009: Outstanding Exercisable Weighted Weighted Average Aggregate |
6020 - COMPREHENSIVE INCOME
6020 - COMPREHENSIVE INCOME | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
COMPREHENSIVE INCOME | |
COMPREHENSIVE INCOME | NOTE 3 COMPREHENSIVE INCOME The balances included in accumulated other comprehensive income in the consolidated balance sheets are as follows: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in thousands) Net income $ 70,580 $ 78,699 $ 130,509 $ 146,854 Other comprehensive income: Foreign currency translation adjustments, net of tax 91,338 (2,903 ) 11,152 97,821 Amortization of unrecognized losses and prior year service cost, net of tax (851 ) 208 1,128 (119 ) Change in assumptions for the Company's benefit plans - 3,713 - 3,713 Net (loss) gain on derivative financial instruments, net of tax (34,840 ) 16,167 7,631 (62,645 ) Total other comprehensive income, net of tax 55,647 17,185 19,911 38,770 Total Comprehensive income 126,227 95,884 150,420 185,624 Comprehensive income attributable to the noncontrolling interests 6,053 (1 ) (187 ) (26 ) Comprehensive income attributable to DENTSPLY International $ 120,174 $ 95,885 $ 150,607 $ 185,650 During the quarter ended June 30, 2009, foreign currency translation adjustments included currency translation gains of $101.7 million and losses of $4.3 million on the Companys loans designated as hedges of net investments.During the quarter ended June 30, 2008, foreign currency translation adjustments included currency translationlosses of $8.8 million partially offset by gains of $5.9 million on the Companys loans designated as hedges of net investments.During the six months ended June 30, 2009, foreign currency translation adjustments included currency translation gains of $5.4 million and gains of $5.6 million on the Companys loans designated as hedges of net investments.During the six months ended June 30, 2008, foreign currency translation adjustments included currency translation gains of $108.1 millionand losses of $10.3 million on the Companys loans designated as hedges of net investments.These foreign currency translation adjustments were offset by net gains on derivatives financial instruments, which are discussed in Note 10, Financial Instruments and Derivatives. The balances included in accumulated other comprehensive income in the consolidated balance sheets are as follows: June 30, December 31, 2009 2008 (in thousands) Foreign currency translation adjustments $ 179,457 $ 169,550 Unrecognized losses and prior service cost, net (28,971 ) (30,098 ) Net loss on derivative financial instruments (92,209 ) (99,840 ) $ 58,277 $ 39,612 The cumulative foreign currency translation adjustments included translation gains of $282.6 million and $278.1 million as of June 30, 2009 and December 31, 2008, respectively, offset by losses of $103.1 million and $108.5 million, respectively, on loans designated as hedges of net investments.These foreign currency translationadjustments were offset by net gains on derivatives financial instruments, which are discussed in Note 10, |
6030 - EARNINGS PER COMMON SHAR
6030 - EARNINGS PER COMMON SHARE | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | NOTE 4 - EARNINGS PER COMMON SHARE The dilutive effect of outstanding options and restricted stock is reflected in diluted earnings per share by application of the treasury stock method.The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in thousands, except per share amounts) Basic Earnings Per Common Share Computation Net income attributable to DENTSPLY International $ 70,199 $ 78,648 $ 131,942 $ 146,828 Common shares outstanding 148,577 148,851 148,546 149,394 Earnings per common share - basic $ 0.47 $ 0.53 $ 0.89 $ 0.98 Diluted Earnings Per Common Share Computation Net income attributable to DENTSPLY International $ 70,199 $ 78,648 $ 131,942 $ 146,828 Common shares outstanding 148,577 148,851 148,546 149,394 Incremental shares from assumed exercise of dilutive options 1,480 2,939 1,276 2,977 Total shares 150,057 151,790 149,822 152,371 Earnings per common share - diluted $ 0.47 $ 0.52 $ 0.88 $ 0.96 Options to purchase 4.6 million and 7.8 million shares of common stock that were outstanding during the three and six months ended June 30, 2009, respectively, were not included in the computation of diluted earnings per share since the options exercise prices were greater than the average market price of the common shares and, therefore,the effect would be antidilutive.Antidilutive shares during the three and six months ended June 30, 2008, were 1.3 million and 1.4 million, respectively. |
6040 - BUSINESS ACQUISITIONS
6040 - BUSINESS ACQUISITIONS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
BUSINESS ACQUISITIONS | |
BUSINESS ACQUISITIONS | NOTE 5 - BUSINESS ACQUISITIONS During the first six months of 2009, the Company paid $3.0 million, net of cash acquired, primarily related to a payment for an additional purchase price related to an acquisition completed in 2007.The payment was related to provisions in the purchase agreement that allow for additional payments based on the post closing performance of the individual business. |
6050 - SEGMENT INFORMATION
6050 - SEGMENT INFORMATION | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 6 - SEGMENT INFORMATION The Company follows Statement of Financial Accounting Standards No. 131 ("SFAS 131"), Disclosures about Segments of an Enterprise and Related Information.SFAS 131 establishes standards for disclosing information about reportable segments in financial statements. The Company has numerous operating businesses covering a widerange of products and geographic regions, primarily serving the professional dental market. Professional dental products represented approximately 97% of sales for the periods ended June 30, 2009 and 2008. The operating businesses are combined into operating groups, which have overlapping product offerings, geographical presence, customer bases, distribution channels, and regulatory oversight. These operating groups are considered the Companys reportable segments under SFAS 131 as the Companys chief operating decision-maker regularly reviewsfinancial results at the operating group level and uses this information to manage the Companys operations. The accounting policies of the groups are consistent with those described in the most recently filed 10-K/A Consolidated Financial Statements in the summary of significant accounting policies.The Company measures segment income for reporting purposes as net operating profit before restructuring, interest and taxes. In January 2009, the Company moved several locations between segments which resulted in a change to the management structure and helped the Company gain operating efficiencies and effectiveness. The segment information below reflects this revised structure for all periods shown. United States, Germany, and Certain Other European Regions Consumable Businesses This business group includes responsibility for the design, manufacturing, sales and distribution for certain small equipment and chairside consumable products in the United States, Germany, and certain other European regions.It also has responsibility for the sales and distribution of certain Endodontic products in Germany. France, United Kingdom, Italy and Certain Other European Countries, CIS, Middle East, Africa, Pacific Rim Businesses This business group includes responsibility for the sales and distribution for certain small equipment, chairside consumable products, certain laboratory products and certain Endodontic products in France, United Kingdom, Italy, the Commonwealth of Independent States (CIS), Middle East, Africa, Asia (excluding Japan), Japan and Australia,as well as the sale and distribution of implant products and bone substitute/grafting materials in Italy, Asia and Australia. This business group also includes the responsibility for sales and distribution for certain laboratory products, implants products and bone substitution/grafting materials for Austria.It also is responsible for sales and distribution for certain small equipment and chairside consumable products, certain laboratory products, implant products and bone substation/grafting materials in certain other European countries.In addition this business group also includes the manufacturing and sale of Orthodontic products and certain laboratory products in Japan, and the manufacturing of certain l |
6060 - INVENTORIES
6060 - INVENTORIES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
INVENTORIES | |
INVENTORIES | NOTE 7 - INVENTORIES Inventories are stated at the lower of cost or market.At June 30, 2009 and December 31, 2008, the cost of $9.1 million, or 2.9%, and $9.6 million, or 3.1%, respectively, of inventories was determined by the last-in, first-out (LIFO) method. The cost of other inventories was determined by the first-in, first-out (FIFO) oraverage cost methods. The Company establishes reserves for inventory estimated to be obsolete or unmarketable equal to the difference between the cost of inventory and estimated market value based upon assumptions about future demand and market conditions.The inventory valuation reserves were $30.9 million and $28.4 million as of June 30, 2009 and December 31, 2008, respectively. If the FIFO method had been used to determine the cost of LIFO inventories, the amounts at which net inventories are stated would be higher than reported at June 30, 2009 and December 31, 2008 by $3.5 million at both dates. Inventories, net of inventory valuation reserves, consist of the following: June 30, December 31, 2009 2008 (in thousands) Finished goods $ 187,907 $ 184,226 Work-in-process 54,067 58,123 Raw materials and supplies 67,457 63,776 $ 309,431 $ 306,125 |
6070 - BENEFIT PLANS
6070 - BENEFIT PLANS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
BENEFIT PLANS | |
BENEFIT PLANS | NOTE 8 - BENEFIT PLANS The following sets forth the components of net periodic benefit cost of the Companys benefit plans and for the Companys other postretirement employee benefit plans for the three and six months ended June 30, 2009 and June 30, 2008, respectively: Defined Benefit Plans Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in thousands) Service cost $ 2,061 $ 1,610 $ 4,067 $ 3,416 Interest cost 1,979 2,187 3,898 4,435 Expected return on plan assets (981 ) (1,207 ) (1,939 ) (2,365 ) Amortization of transition obligation 59 63 116 124 Amortization of prior service cost 35 43 69 89 Amortization of net loss 415 (11 ) 818 62 Net periodic benefit cost $ 3,568 $ 2,685 $ 7,029 $ 5,761 Other Postretirement Plans Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (in thousands) Service cost $ 14 $ 13 $ 27 $ 25 Interest cost 155 157 311 313 Expected return on plan assets - - - - Amortization of transition obligation - - - - Amortization of prior service cost - - - - Amortization of net loss 51 37 101 74 Net periodic benefit cost $ 220 $ 207 $ 439 $ 412 The following sets forth the information related to the funding of the Companys benefit plans for 2009: Other Pension Postretirement Benefits Benefits (in thousands) Actual, June 30, 2009 $ 4,078 $ 328 Projected for the remainder of the year 4,319 757 Total for year $ 8,397 $ 1,085 |
6080 - RESTRUCTURING, IMPAIRMEN
6080 - RESTRUCTURING, IMPAIRMENT AND OTHER COSTS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
RESTRUCTURING, IMPAIRMENT AND OTHER COSTS | |
RESTRUCTURING, IMPAIRMENT AND OTHER COSTS | NOTE 9 RESTRUCTURING, IMPAIRMENTS AND OTHER COSTS Restructuring Costs During the three and six months ended June 30, 2009, the Company recorded restructuring costs of $3.1 million and $4.3 million, respectively.During the three and six months ended June 30, 2008, the Company recorded restructuring costs of $0.6 million and $0.8 million, respectively.These costs are recorded in Restructuring,impairments and other costs in the income statement and the associated liabilities are recorded in accrued liabilities and other non-current liabilities in the consolidated condensed balance sheet.These costs consist of employee severance benefits, payments due under operating contracts and other restructuring costs. During 2009, the Company initiated several restructuring plans primarily related to the integration, reorganization and closure or consolidation of certain production and selling facilities in order to better leverage the Companys resources by minimizing costs and obtaining operational efficiencies. As of June 30 2009, the Companys restructuring accruals were as follows: Severance 2007 and Prior Plans 2008 Plans 2009 Plans Total (in thousands) Balance, December 31, 2008 $ 664 $ 2,806 $ - $ 3,470 Provisions and adjustments (132 ) 2,402 1,497 3,767 Amounts applied (86 ) - (893 ) (979 ) Balance, June 30, 2009 $ 446 $ 5,208 $ 604 $ 6,258 Lease/contract terminations 2007 and Prior Plans Total (in thousands) Balance, December 31, 2008 $ 1,271 $ 1,271 Provisions and adjustments 50 50 Amounts applied (82 ) (82 ) Balance, June 30, 2009 $ 1,239 $ 1,239 Other restructuring costs 2007 and Prior Plans 2008 Plans Total (in thousands) Balance, December 31, 2008 $ 108 $ 56 $ 164 Provisions and adjustments 101 421 522 Amounts applied (97 ) (449 ) (546 ) Balance, June 30, 2009 $ 112 $ 28 $ 140 December 31, Provisions and Amounts June 30, 2008 Adjustments applied 2009 (in thousands) (1 ) United States, Germany, and Certain Other EuropeanRegions Consumable Businesses $ 1,286 $ 325 $ (325 ) $ 1,286 (2 ) France, U.K., Italy, and Certain Other European Countries, CIS, Middle 190 222 (315 ) 97 East, Africa, Pacific Rim Businesses (3 ) Canada/Latin America/ Endodontics/Orthodontics 178 287 (427 ) 38 (4 ) Dental Laboratory Business/ Implants/Non-Dental 3,251 3,280 (315 ) 6,216 All Other (a) - 225 (225 ) - $ 4,905 $ 4,339 $ (1,607 ) $ 7,637 (a) Includes: amounts recorded at Corporate headquarters and one distribution warehou |
6090 - FINANCIAL INSTRUMENTS AN
6090 - FINANCIAL INSTRUMENTS AND DERIVATIVES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
FINANCIAL INSTRUMENTS AND DERIVATIVES | |
FINANCIAL INSTRUMENTS AND DERIVATIVES | NOTE 10 FINANCIAL INSTRUMENTS AND DERIVATIVES The Company has adopted the Statement of Financial Accounting Standards No. 161 (SFAS 161),Disclosures about Derivative Instruments and Hedging Activities.SFAS 161 is effective for fiscal years beginning after December 15, 2008 and amends and expands the disclosure requirements of SFAS 133, Accounting for Derivative Instrumentsand Hedging.The Companys expanded disclosures are included below. Derivative Instruments and Hedging Activities The Company's activities expose it to a variety of market risks, which primarily include the risks related to the effects of changes in foreign currency exchange rates, interest rates and commodity prices.These financial exposures are monitored and managed by the Company as part of its overall risk management program.The objective of this risk management program is to reduce the volatility that these market risks may have on the Company's operating results and equity. Certain of the Company's inventory purchases are denominated in foreign currencies, which expose the Company to market risk associated with exchange rate movements.The Company's policy generally is to hedge major foreign currency transaction exposures through foreign exchange forward contracts.These contracts areentered into with major financial institutions thereby minimizing the risk of credit loss.In addition, the Company's investments in foreign subsidiaries are denominated in foreign currencies, which create exposures to changes in exchange rates.The Company uses debt and derivatives denominated in the applicable foreign currency as a means of hedging a portion of this risk. With the Companys significant level of variable rate long-term debt and net investment hedges, changes in the interest rate environment can have a major impact on the Companys earnings, depending upon its interest rate exposure.As a result, the Company manages its interest rate exposure with the use of interest rate swaps,when appropriate, based upon market conditions. The manufacturing of some of the Companys products requires the use of commodities, which are subject to market fluctuations.In order to limit the unanticipated impact on earnings from such market fluctuations, the Company selectively enters into commodity swaps for certain materials used in the production of its products.Additionally, the Company uses non-derivative methods, such as the precious metal consignment agreements to effectively hedge commodity risks. Cash Flow Hedges The Company uses interest rate swaps to convert a portion of its variable rate debt to fixed rate debt.As of June 30, 2009, the Company has three groups of significant variable rate to fixed rate interest rate swaps.One of the groups of swaps has notional amounts totaling 12.6 billion Japanese yen, and effectivelyconverts the underlying variable interest rates to an average fixed rate of 1.6% for a term of ten years, ending in March 2012.Another swap has a notional amount of 65.0 million Swiss francs, and effectively converts the underlying variable interest rates to a fixed rate of 4.2% for a term of seven years, ending in March 2012.A third group of swaps has a noti |
6100 - FAIR VALUE MEASUREMENT
6100 - FAIR VALUE MEASUREMENT | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | NOTE 11 FAIR VALUE MEASUREMENT The Company records financial instruments at fair value with unrealized gains and losses related to certain financial instruments reflected in accumulated other comprehensive income on the consolidated condensed Balance Sheets.In addition, the Company recognizes certain liabilities at fair value.The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information.Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The degree of judgment utilized in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Pricing observability is impacted by a number of factors, including the type of financial instrument.Financial instruments with readily available active quoted prices or for whichfair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, financial instruments rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value. The Company has adopted the Statement of Financial Accounting Standards No. 157 (SFAS 157), and for a more detailed discussion of the definition of fair value and the three levels defined by the SFAS 157 hierarchy, refer to the Companys 2008 Annual Report on Form 10-K/A. The following tables set forth by level within the fair value hierarchy the Companys financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2009 and December 31, 2008, which are classified as Cash and cash equivalents, Other noncurrent assets, net, Other noncurrent liabilities,and Accrued liabilities.As required by SFAS 157, financial assets and liabilities that are recorded at fair value as of the balance sheet date are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of June 30, 2009 Total Level 1 Level 2 Level 3 (in thousands) Assets Money market funds $ 251,871 $ 251,871 $ - $ - Commodity forward purchase contracts 18 - 18 - Foreign exchange forward contracts 2,042 - 2,042 - Total assets $ 253,931 $ 251,871 $ 2,060 $ - Liabilities Interest rate swaps $ 11,482 $ - $ 11,482 $ - Commodity forward purchase contracts 191 - 191 - Cross currency interest rate swaps 139,522 - 139,522 - Foreign exchange forward contracts 836 836 Total liabilities $ 152,031 $ - $ 152,031 $ - As of December 31, 2008 Total Level 1 Level 2 Level 3 (in thousands) Assets Money market funds $ 203,991 $ 203,991 $ - $ - Interest Rate Swaps 2 - 2 - Foreign exchange forward contracts 2,053 - 2,053 - Total asse |
6110 - UNCERTAINTIES IN INCOME
6110 - UNCERTAINTIES IN INCOME TAXES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
UNCERTAINTIES IN INCOME TAXES | |
UNCERTAINTIES IN INCOME TAXES | NOTE 12 UNCERTAINTIES IN INCOME TAXES FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Interpretation requires that the Company recognize in the financial statements, the impact of a tax position, if that position is more likely thannot of being sustained on audit, based on the technical merits of the position. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure. It is reasonably possible that certain amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date of the Companys consolidated financial statements. Expiration of statutes of limitation in various jurisdictions could include unrecognized tax benefits of approximately $0.8 million.Afavorable unrecognized tax benefit of approximately $6.7 million could occur as a result of final settlement and resolution of outstanding tax matters in foreign jurisdictions during the next twelve months. |
6120 - FINANCING ARRANGEMENTS
6120 - FINANCING ARRANGEMENTS | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
FINANCING ARRANGEMENTS | |
FINANCING ARRANGEMENTS | NOTE 13 - FINANCING ARRANGEMENTS In the second quarter of 2009, the Companys U.S. dollar denominated private placement note, U.S. dollar commercial paper facility, and multi-currency revolving credit agreement were classified as short-term liabilities as they mature within the next twelve months.Notes payable and current portion of long-term debt, as classifiedon the condensed consolidated balance sheets, amounted to $273.9 million and $25.8 million at June 30, 2009 and December 31, 2008, respectively. The Company estimates the fair value and carrying value of its total debt was $419.9 million as of June 30, 2009.The fair value of the Companys long-term debt equaled its carrying value as the Companys debt is variable rate and reflects current market rates. The interest rates on private placement notes, revolving debt andcommercial paper are variable and therefore the fair value of these instruments approximates their carrying values. |
6130 - COMMITMENTS AND CONTINGE
6130 - COMMITMENTS AND CONTINGENCIES | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 14 - COMMITMENTS AND CONTINGENCIES Legal Proceedings On January 5, 1999, the Department of Justice filed a Complaint against the Company in the U.S. District Court in Wilmington, Delaware alleging that the Companys tooth distribution practices violated the antitrust laws and seeking an order for the Company to discontinue its practices.This case has been concluded and the DistrictCourt, upon the direction of the Court of Appeals, issued an injunction in May 2006, preventing DENTSPLY from taking action to restrict its tooth dealers in the U.S. from adding new competitive teeth lines. Subsequent to the filing of the Department of Justice Complaint in 1999, a private party putative class action was filed based on allegations similar to those in the Department of Justice case, on behalf of dental laboratories who purchased Trubyte teeth or products containing Trubyte teeth.The District Court granted the CompanysMotion on the lack of standing of the laboratory class action to pursue damage claims.The Plaintiffs appealed this decision to the Third Circuit and the Court largely upheld the decision of the District Court in dismissing the Plaintiffs damages claims against DENTSPLY, with the exception of allowing the Plaintiffs to pursue a damage claim based on a theory of resale price maintenance between the Company and its tooth dealers.The Plaintiffs then filed an amended complaint in the DistrictCourt asserting that DENTSPLY and its tooth dealers, and the dealers among themselves, engaged in a conspiracy to violate the antitrust laws.The District Court has granted the Motions filed by DENTSPLY and the dealers, to dismiss Plaintiffs claims, except for the resale price maintenance claims.The Plaintiffs have appealed the dismissal of these claims to the Third Circuit.Also pending is a case filed by a manufacturer of a competitive tooth line seeking unspecified damagesalleged to have been incurred as a result of the Companys tooth distribution practices, including the practice found to be a violation of the antitrust law. On June 18, 2004, Marvin Weinstat, DDS and Richard Nathan, DDS filed a class action suit in San Francisco County, California alleging that the Company misrepresented that its Cavitron ultrasonic scalers are suitable for use in oral surgical procedures.The Complaint seeks a recall of the product and refund of its purchase priceto dentists who have purchased it for use in oral surgery.The Court certified the case as a class action in June 2006 with respect to the breach of warranty and unfair business practices claims.The class is defined as California dental professionals who purchased and used one or more Cavitron ultrasonic scalers for the performance of oral surgical procedures.The Company filed a motion for decertification of the class and this motion was granted.Plaintiffs haveappealed the decertification of the class to the California Court of Appeals. On December 12, 2006, a Complaint was filed by Carole Hildebrand, DDS and Robert Jaffin, DDS in the Eastern District of PA.The case was filed by the same law firm that filed the Weinstat case in California.The Complaint asserts putative class action claims on behalf of |
Document Information
Document Information | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Period End Date | 2009-06-30 |
Amendment Flag | false |
Amendment Description | none |
Entity Information
Entity Information (USD $) | |||
6 Months Ended
Jun. 30, 2009 | Jul. 29, 2009
| Jun. 30, 2008
| |
Entity Information [Line Items] | |||
Entity Registrant Name | DENTSPLY International Inc. | ||
Entity Central Index Key | 0000818479 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $5,741,814,318 | ||
Entity Common Stock, Shares Outstanding | 148,592,159 |