COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-16211 | ||
Entity Registrant Name | DENTSPLY SIRONA Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 39-1434669 | ||
Entity Address, Address Line One | 13320 Ballantyne Corporate Place | ||
Entity Address, City or Town | Charlotte | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28277-3607 | ||
City Area Code | 844 | ||
Local Phone Number | 848-0137 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | XRAY | ||
Security Exchange Name | NASDAQ | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,605,744,689 | ||
Entity Common Stock, Shares Outstanding | 219,048,498 | ||
Documents Incorporated by Reference | Certain portions of the definitive Proxy Statement of DENTSPLY SIRONA Inc. (the “Proxy Statement”) to be used in connection with the 2021 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K to the extent provided herein. Except as specifically incorporated by reference herein the Proxy Statement is not deemed to be filed as part of this Form 10-K. | ||
Entity Central Index Key | 0000818479 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Total net sales | $ 3,342,000,000 | $ 4,029,000,000 | $ 3,986,000,000 |
Cost of products sold | 1,685,000,000 | 1,864,000,000 | 1,918,000,000 |
Gross profit | 1,657,000,000 | 2,165,000,000 | 2,068,000,000 |
Selling, general and administrative expenses | 1,435,000,000 | 1,723,000,000 | 1,719,000,000 |
Impairment | 157,000,000 | 0 | 1,086,000,000 |
Restructuring and other costs | 77,000,000 | 81,000,000 | 221,000,000 |
Operating (loss) income | (12,000,000) | 361,000,000 | (958,000,000) |
Other income and expenses: | |||
Interest expense | 48,000,000 | 30,000,000 | 37,000,000 |
Interest income | (1,000,000) | (2,000,000) | (2,000,000) |
Other expense (income), net | 1,000,000 | (12,000,000) | (35,000,000) |
(Loss) income before income taxes | (60,000,000) | 345,000,000 | (958,000,000) |
Provision for income taxes | 23,000,000 | 82,000,000 | 53,000,000 |
Net (loss) income | (83,000,000) | 263,000,000 | (1,011,000,000) |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 |
Net (loss) income attributable to Dentsply Sirona | $ (83,000,000) | $ 263,000,000 | $ (1,011,000,000) |
Net (loss) income per common share attributable to Dentsply Sirona: | |||
Basic (in dollars per share) | $ (0.38) | $ 1.18 | $ (4.51) |
Diluted (in dollars per share) | $ (0.38) | $ 1.17 | $ (4.51) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 219.2 | 223.1 | 224.3 |
Diluted (in shares) | 219.2 | 224.4 | 224.3 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (83) | $ 263 | $ (1,011) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gain (loss) | 182 | (83) | (180) |
Net (loss) gain on derivative financial instruments | (32) | (1) | 29 |
Net unrealized holding gain on available-for-sale securities | 0 | 0 | (44) |
Pension liability adjustments | (13) | (36) | 7 |
Total other comprehensive income (loss) | 137 | (120) | (188) |
Total comprehensive income (loss) | 54 | 143 | (1,199) |
Less: Comprehensive income attributable to noncontrolling interests | 1 | 1 | 0 |
Comprehensive income (loss) attributable to Dentsply Sirona | $ 53 | $ 142 | $ (1,199) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 438 | $ 405 |
Accounts and notes receivable-trade, net | 673 | 782 |
Inventories, net | 466 | 562 |
Prepaid expenses and other current assets, net | 214 | 251 |
Total Current Assets | 1,791 | 2,000 |
Property, plant and equipment, net | 791 | 802 |
Operating lease right-of-use assets, net | 176 | 159 |
Identifiable intangible assets, net | 2,504 | 2,176 |
Goodwill, net | 3,986 | 3,397 |
Other noncurrent assets, net | 94 | 69 |
Total Assets | 9,342 | 8,603 |
Current Liabilities: | ||
Accounts payable | 305 | 308 |
Accrued liabilities | 653 | 629 |
Income taxes payable | 60 | 56 |
Notes payable and current portion of long-term debt | 299 | 2 |
Total Current Liabilities | 1,317 | 995 |
Long-term debt | 1,978 | 1,433 |
Operating lease liabilities | 130 | 120 |
Deferred income taxes | 393 | 480 |
Other noncurrent liabilities | 554 | 480 |
Total Liabilities | 4,372 | 3,508 |
Equity: | ||
Preferred stock, $1.00 par value; 0.25 million shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value; 400.0 million shares authorized at December 31, 2020 and 2019; 264.5 million shares issued at December 31, 2020 and 2019; 218.7 million and 221.3 million shares outstanding at December 31, 2020 and 2019, respectively | 3 | 3 |
Capital in excess of par value | 6,604 | 6,587 |
Retained earnings | 1,233 | 1,404 |
Accumulated other comprehensive loss | (464) | (600) |
Treasury stock, at cost, 45.8 million and 43.2 million shares at December 31, 2020 and 2019, respectively | (2,409) | (2,301) |
Total Dentsply Sirona Equity | 4,967 | 5,093 |
Noncontrolling interests | 3 | 2 |
Total Equity | 4,970 | 5,095 |
Total Liabilities and Equity | $ 9,342 | $ 8,603 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par or stated value per share (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 250,000 | 250,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 264,500,000 | 264,500,000 |
Common stock, shares outstanding (in shares) | 218,700,000 | 221,300,000 |
Treasury stock, shares (in shares) | 45,800,000 | 43,200,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Revision of Prior Period, Accounting Standards Update, Adjustment | Cumulative Effect, Period of Adoption, Adjustment | Total Dentsply Sirona Equity | Total Dentsply Sirona EquityRevision of Prior Period, Accounting Standards Update, Adjustment | Total Dentsply Sirona EquityCumulative Effect, Period of Adoption, Adjustment | Common Stock | Capital in Excess of Par Value | Retained Earnings | Retained EarningsRevision of Prior Period, Accounting Standards Update, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2017 | $ 6,628 | $ 6,616 | $ 3 | $ 6,544 | $ 2,316 | $ (291) | $ (1,956) | $ 12 | ||||||
Beginning Balance (Accounting Standards Update 2014-09) at Dec. 31, 2017 | $ (6) | $ (6) | $ (6) | |||||||||||
Beginning Balance (Accounting Standards Update 2016-16) at Dec. 31, 2017 | $ (3) | $ (3) | $ (3) | |||||||||||
Beginning Balance (Accounting Standards Update 2018-02) at Dec. 31, 2017 | $ 8 | $ 8 | $ 8 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net (loss) income | (1,011) | (1,011) | (1,011) | 0 | ||||||||||
Other comprehensive (loss) income | (188) | (188) | (188) | |||||||||||
Exercise of stock options | 25 | 25 | (14) | 39 | ||||||||||
Stock based compensation expense | 21 | 21 | 21 | |||||||||||
Treasury shares purchased | (250) | (250) | (250) | |||||||||||
Restricted stock unit distributions | (13) | (13) | (29) | 16 | ||||||||||
Cash dividends | (78) | (78) | (78) | |||||||||||
Ending Balance at Dec. 31, 2018 | 5,133 | 5,121 | 3 | 6,522 | 1,226 | (479) | (2,151) | 12 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net (loss) income attributable to Dentsply Sirona | (1,011) | |||||||||||||
Net (loss) income | 263 | 263 | 263 | 0 | ||||||||||
Other comprehensive (loss) income | (120) | (121) | (121) | 1 | ||||||||||
Divesture of noncontrolling interest | (11) | (11) | ||||||||||||
Exercise of stock options | 109 | 109 | 13 | 96 | ||||||||||
Stock based compensation expense | 66 | 66 | 66 | |||||||||||
Funding of employee stock ownership plan | 5 | 5 | 1 | 4 | ||||||||||
Treasury shares purchased | (260) | (260) | (260) | |||||||||||
Restricted stock unit distributions | (6) | (6) | (16) | 10 | ||||||||||
RSU dividends | 1 | (1) | ||||||||||||
Cash dividends | (84) | (84) | (84) | |||||||||||
Ending Balance at Dec. 31, 2019 | 5,095 | 5,093 | 3 | 6,587 | 1,404 | (600) | (2,301) | 2 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net (loss) income attributable to Dentsply Sirona | 263 | |||||||||||||
Net (loss) income | (83) | (83) | 0 | |||||||||||
Other comprehensive (loss) income | 137 | 136 | 136 | 1 | ||||||||||
Exercise of stock options | 11 | 11 | 1 | 10 | ||||||||||
Stock based compensation expense | 47 | 47 | 47 | |||||||||||
Funding of employee stock ownership plan | 5 | 5 | 2 | 3 | ||||||||||
Treasury shares purchased | (140) | (140) | (140) | |||||||||||
Restricted stock unit distributions | (15) | (15) | (34) | 19 | ||||||||||
RSU dividends | 0 | 1 | (1) | |||||||||||
Cash dividends | (87) | (87) | (87) | |||||||||||
Ending Balance at Dec. 31, 2020 | 4,970 | $ 4,967 | $ 3 | $ 6,604 | 1,233 | $ (464) | $ (2,409) | $ 3 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net (loss) income attributable to Dentsply Sirona | $ (83) | $ (83) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (in dollars per share) | $ 0.400 | $ 0.375 | $ 0.35 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (83,000,000) | $ 263,000,000 | $ (1,011,000,000) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 142,000,000 | 133,000,000 | 133,000,000 |
Amortization of intangible assets | 192,000,000 | 190,000,000 | 198,000,000 |
Amortization of deferred financing costs | 5,000,000 | 3,000,000 | 3,000,000 |
Fixed asset impairment | 3,000,000 | 33,000,000 | 0 |
Goodwill impairment | 157,000,000 | 0 | 1,086,000,000 |
Indefinite-lived intangible asset impairment | 39,000,000 | 5,000,000 | 179,000,000 |
Definite-lived intangible asset impairment | 0 | 4,000,000 | 0 |
Deferred income taxes | (64,000,000) | (37,000,000) | (62,000,000) |
Stock based compensation expense | 47,000,000 | 66,000,000 | 21,000,000 |
Restructuring and other costs - non-cash | 10,000,000 | 16,000,000 | 23,000,000 |
Gain on sale of equity security | 0 | 0 | (44,000,000) |
Other non-cash (income) expense | (14,000,000) | (20,000,000) | 3,000,000 |
Loss on disposal of property, plant and equipment | 1,000,000 | 4,000,000 | 5,000,000 |
Gain on divestiture of noncontrolling interest | 0 | (9,000,000) | 0 |
Loss on sale on non-strategic businesses and product lines | 1,000,000 | 2,000,000 | 0 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts and notes receivable-trade, net | 126,000,000 | (91,000,000) | 24,000,000 |
Inventories, net | 124,000,000 | 14,000,000 | (20,000,000) |
Prepaid expenses and other current assets, net | 42,000,000 | 13,000,000 | (27,000,000) |
Other noncurrent assets, net | 1,000,000 | (9,000,000) | (13,000,000) |
Accounts payable | (23,000,000) | 26,000,000 | 7,000,000 |
Accrued liabilities | (17,000,000) | 45,000,000 | 0 |
Income taxes | (39,000,000) | (16,000,000) | 12,000,000 |
Other noncurrent liabilities | (15,000,000) | (2,000,000) | (17,000,000) |
Net cash provided by operating activities | 635,000,000 | 633,000,000 | 500,000,000 |
Cash flows from investing activities: | |||
Cash paid for acquisitions of businesses and equity investments, net of cash acquired | (1,078,000,000) | (3,000,000) | (130,000,000) |
Cash received on sale of non-strategic businesses or product lines | 1,000,000 | 11,000,000 | 0 |
Purchases of short term investments | 0 | 0 | (4,000,000) |
Liquidation of short term investments | 0 | 1,000,000 | 0 |
Capital expenditures | (87,000,000) | (123,000,000) | (183,000,000) |
Cash received on derivative contracts | 58,000,000 | 40,000,000 | 8,000,000 |
Cash paid on derivative contracts | (1,000,000) | 0 | (2,000,000) |
Expenditures for identifiable intangible assets | 0 | 0 | (5,000,000) |
Proceeds from the sale of equity security | 0 | 0 | 54,000,000 |
Proceeds from sale of property, plant and equipment, net | 1,000,000 | 5,000,000 | 9,000,000 |
Net cash used in investing activities | (1,106,000,000) | (69,000,000) | (253,000,000) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings, net of deferred financing costs | 1,448,000,000 | 120,000,000 | 0 |
Cash paid for deferred financing costs | (6,000,000) | (1,000,000) | 0 |
Repayments on long-term borrowings, net | (701,000,000) | (251,000,000) | (9,000,000) |
Net borrowings (repayments) on short-term borrowings | 2,000,000 | (69,000,000) | 60,000,000 |
Payments on terminated derivative instruments | (30,000,000) | 0 | 0 |
Proceeds from exercised stock options | 11,000,000 | 109,000,000 | 28,000,000 |
Cash paid for acquisition of noncontrolling interests of consolidated subsidiaries | (2,000,000) | 0 | 0 |
Cash paid for contingent consideration on prior acquisitions | (4,000,000) | (33,000,000) | 0 |
Cash paid for treasury stock | (140,000,000) | (260,000,000) | (250,000,000) |
Cash dividends paid | (88,000,000) | (81,000,000) | (79,000,000) |
Net cash provided by (used in) financing activities | 490,000,000 | (466,000,000) | (250,000,000) |
Effect of exchange rate changes on cash and cash equivalents | 14,000,000 | (3,000,000) | (8,000,000) |
Net increase (decrease) in cash and cash equivalents | 33,000,000 | 95,000,000 | (11,000,000) |
Cash and cash equivalents at beginning of period | 405,000,000 | 310,000,000 | 321,000,000 |
Cash and cash equivalents at end of period | 438,000,000 | 405,000,000 | 310,000,000 |
Supplemental disclosures of cash flow information: | |||
Interest paid, net of amounts capitalized | 45,000,000 | 30,000,000 | 35,000,000 |
Income taxes paid, net of refunds | 82,000,000 | 112,000,000 | 105,000,000 |
Non-cash investing activities: | |||
Property, plant and equipment in accounts payable at end of period | 14,000,000 | 14,000,000 | 15,000,000 |
Exchange of inventory for naming rights | $ 4,000,000 | $ 3,000,000 | $ 0 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Description of Business DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the “Company”), is the world’s largest manufacturer of dental products and technologies, with a 134-year history of innovation and service to the dental industry and patients worldwide. The Company’s principal product categories include dental consumable products, dental equipment, dental technologies and certain healthcare consumable products. The Company sells its products in over 120 countries under some of the most well-established brand names in the industry. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from those estimates. Specifically, for the year ended December 31, 2020, some of these estimates and assumptions were based on the potential impacts of the COVID-19 pandemic. The full extent to which the COVID-19 pandemic will directly or indirectly have a negative material impact on the Company's financial condition, liquidity, or results of operations, is highly uncertain and difficult to predict. More specifically, the demand for the Company's products has been, and continues to be, affected by social distancing guidelines, newly implemented dental practice safety protocols which reduce patient traffic, and patient reluctance to seek dental care. At this time, it is uncertain how long these impacts will continue. During the year the Company's business was impacted by COVID-19. The impact began in the early part of the first quarter as the Company began to experience declines in customer demand in Asia and then further in mid-March where it was most pronounced in Europe and where the Company experienced partial or country-wide business lockdowns in various markets, including China, France, and Italy. The United States was most impacted in April and May. Most regions throughout the world continue to experience localized surges of COVID-19 cases which are being responded to by governmental authorities with partial lockdowns. While the duration and severity of this continuing p andemic is uncertain, the Company currently expects that the COVID-19 pandemic may have a negative impact on its operations in 2021. As a result of the economic uncertainties caused by the COVID-19 pandemic, the Company implemented several measures to improve liquidity and operating results, including reduction of employee hours and salaries, furloughs, suspended hiring, travel bans, delaying some of its planned capital expenditures, and deferring other discretionary spending for 2020. Many of these measures have been eased during the second half of the year as demand for the Company's products has improved. The Company continues to monitor the COVID-19 pandemic and may need to reduce operations in the event of a resurgence of COVID-19 or in the event of actions from governmental authorities to combat a resurgence. The Company believes it will be able to generate sufficient liquidity to satisfy its obligations and remain in compliance with the Company's existing debt covenants for the next twelve months. At December 31, 2020, the Company's liquidity includes $438 million of cash and has access to a $700 million 2018 Credit Facility as well as other short-term credit facilities of approximately $400 million. (See Note 13, Financing Arrangements). At December 31, 2020, the Company is in compliance with all of its debt covenants and expects to remain in compliance with all covenants for the next twelve months. However, if recovery from the pandemic takes longer than currently estimated, the Company may not be able to comply with its debt covenants and may have to seek covenant waivers. Inability to obtain debt covenant waivers may lead to default and acceleration of all of its outstanding debt, which could have a material adverse effect on liquidity. Basis of Presentation The consolidated financial statements include the results of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. For the year ended December 31, 2020, amounts recorded in the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income reflect certain adjustments pertaining to prior periods, the impact of which are not material to the financial statements for the years presented. These corrections, which primarily include adjustments to accruals recorded through cost of products sold and selling, general, and administrative expenses, resulted in a net $9 million and $7 million decrease to pre-tax income and net income, respectively, in the twelve months ended December 31, 2020. Investments in non-consolidated affiliates, joint ventures and partnerships where the Company maintains significant influence over an entity are accounted for using the equity method. Cash and Cash Equivalents Cash and cash equivalents include deposits with banks as well as highly liquid time deposits with original maturities of ninety days or less. Short-term Investments Short-term investments are highly liquid time deposits with original maturities greater than ninety days and with remaining maturities of one year or less. Accounts and Notes Receivable The Company establishes an allowance for doubtful accounts based on an estimate of current expected credit losses resulting from the inability of its customers to make required payments. The allowance is determined based on a combination of factors, including the length of time that the receivable is past due, history of write-offs, and the Company's knowledge of circumstances relating to specific customers' ability to meet their financial obligations. Provision for doubtful accounts are included in Selling, General and Administrative expenses in the Consolidated Statements of Operations. For customers on credit terms, the Company performs ongoing credit evaluation of those customers’ financial condition and generally does not require collateral from them. Accounts receivable are stated net of allowances for doubtful accounts of $18 million and $29 million at December 31, 2020 and 2019, respectively. For the years ended December 31, 2020 and 2019, the Company wrote-off $12 million and $6 million, respectively, of accounts receivable that were previously reserved. The Company increased the provision for doubtful accounts by $1 million and $10 million during 2020 and 2019, respectively. Inventories Inventories are stated at the lower of cost and net realizable value. The cost of inventories is based upon the First In First Out Method ("FIFO") or average cost methods, except for $3 million and $5 million of inventories was determined by the last-in, first-out (“LIFO”) method as of December 31, 2020 and 2019, 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 December 31, 2020 and 2019 by $22 million and $14 million, respectively. The Company establishes reserves for inventory estimated to be excess, obsolete or unmarketable based upon assumptions about future demand, market conditions, and expiration of products. Valuation of Goodwill and Indefinite-Lived and Definite-Lived Intangible Assets Assessment of the potential impairment of goodwill and indefinite-lived and definite-lived intangible assets is an integral part of the Company’s normal ongoing review of operations. Testing for potential impairment of these assets is significantly dependent on assumptions and reflects management’s best estimates at a particular point in time. The dynamic economic environments in which the Company’s businesses operate and key economic and business assumptions with respect to projected selling prices, increased competition and introductions of new technologies can significantly affect the outcome of impairment tests. Estimates based on these assumptions may differ significantly from actual results. Changes in factors and assumptions used in assessing potential impairments can have a significant impact on the existence and magnitude of impairments, as well as the time at which such impairments are recognized. If there are unfavorable changes in these assumptions, future cash flows, a key variable in assessing the impairment of these assets, may decrease and as a result the Company may be required to recognize impairment charges. Future changes in the environment and the economic outlook for the assets being evaluated could also result in additional impairment charges being recognized. The following information outlines the Company’s significant accounting policies on long-lived assets by type. Goodwill Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired and liabilities assumed in a business combination. Goodwill is not amortized. The Company conducts an impairment test as of April 30 of each year, or more frequently if events or circumstances indicate that the carrying value of goodwill may be impaired. This impairment assessment includes an evaluation of reporting units, which the Company has determined are either an operating segment or one level below its operating segments, as determined in accordance with ASC 350. The Company performs impairment tests by comparing the fair value of each reporting unit to its carrying amount to determine if there is a potential impairment. If the carrying value of a reporting unit with goodwill exceeds its fair value, an impairment charge is recognized for the excess amount. To determine the fair value of the Company’s reporting units, the Company uses a discounted cash flow model as its valuation technique to measure the fair value for its reporting units. The discounted cash flow model uses five- to ten-year forecasted cash flows plus a terminal value based on a multiple of earnings or by capitalizing the last period’s cash flows using a perpetual growth rate. The Company's significant assumptions in the discounted cash flow models include, but are not limited to, the discount rates, revenue growth rates, perpetual revenue growth rates, and operating margin percentages of the reporting unit's business. The Company considers the current market conditions when determining its assumptions. Lastly, the Company reconciles the aggregate fair values of its reporting units to its market capitalization, which include a reasonable control premium based on market conditions. Additional information related to the testing for goodwill impairment including results of the annual test performed at April 30, 2020 is provided in Note 10, Goodwill and Intangible Assets. Indefinite-Lived Intangible Assets Indefinite-lived intangible assets consist of tradenames and trademarks acquired during business combinations, and these are not subject to amortization. Valuations of indefinite life intangibles assets acquired are based on information and assumptions available at the time of their acquisition, using income and market approaches to determine fair value. The Company conducts an impairment test as of April 30 of each year, or more frequently if events or circumstances indicate that the carrying value of indefinite-lived intangible assets may be impaired. Potential impairment is identified by comparing the fair value of an intangible asset to its carrying value. The Company performs impairment tests using an income approach, more specifically a relief from royalty method. In the development of the forecasted cash flows, the Company applies significant judgment to determine key assumptions, including revenue growth rates, perpetual revenue growth rates, royalty rates, and discount rates. If the carrying value exceeds the fair value, an impairment loss in the amount equal to the excess is recognized. Additional information related to the testing for indefinite-lived intangible asset impairment including results of the annual test performed at April 30, 2020 is provided in Note 10, Goodwill and Intangible Assets. Definite-Lived Intangible Assets Definite-lived intangible assets primarily consist of patents, tradenames, trademarks, licensing agreements, technology know-how, and customer relationships. Valuation of definite-lived intangibles assets acquired in business combinations are based on information and assumptions available at the time of acquisition, using income and market model approaches to determine fair value. Identifiable definite-lived intangible assets are amortized on a basis that best reflects how their economic benefits are utilized over the life of the asset or on a straight-line basis if not materially different from actual utilization. The useful life is the period over which the asset is expected to contribute to the future cash flows of the Company. The Company uses the following useful lives for its definite-lived intangible assets: Definite-lived Intangible Asset Type Useful Life Patents Up to date patent expires Tradenames and trademarks Up to 20 years Licensing agreements Up to 20 years Customer relationships Up to 15 years Technology know-how Up to 10 years When the expected useful life of an intangible is not known, the Company will estimate its useful life based on similar asset or asset groups, any legal, regulatory, or contractual provision that limits the useful life, the effect of economic factors, including obsolescence, demand, competition, and the level of maintenance expenditures required to obtain the expected future economic benefit from the asset. These assets are reviewed for impairment whenever events or circumstances suggest that the carrying amount of the asset may not be recoverable. The Company closely monitors all intangible assets including those related to new and existing technologies for indicators of impairment as these assets have more risk of becoming impaired. Impairment is based upon an initial evaluation of the identifiable undiscounted cash flows. If the initial evaluation identifies a potential impairment, a fair value of the asset is determined by using a discounted cash flows valuation. If impaired, the resulting charge reflects the excess of the asset’s carrying cost over its fair value. Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Assets acquired through acquisitions are recorded at fair value. Except for leasehold improvements, depreciation is computed by the straight-line method over the assets' estimated useful lives: Property, Plant, and Equipment Assets Type Useful Life Buildings 40 years Machinery and Equipment 4 to 15 years Leasehold Improvements Shorter of the estimated useful life or the term of the lease Maintenance and repairs are expensed as incurred; replacements and major improvements are capitalized. If events or circumstances exist which suggest that the carrying amount of the asset group may not be recoverable the asset group is reviewed for impairment whenever impairment is calculated based upon an evaluation of the identifiable undiscounted cash flows as compared to the carrying value of the asset. If impaired, the resulting charge reflects the excess of the asset group’s carrying cost over its fair value. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) with subsequent amendments (collectively, “ASC 842”). The Company adopted the new leasing standards on January 1, 2019 using the modified retrospective approach transition method. Results for reporting periods beginning after January 1, 2019 are presented under ASC 842, while prior periods are not adjusted and continue to be reported in accordance with historic accounting under ASC 840. The Company elected the package of practical expedients permitted under the transition guidance within the standard, which eliminates the reassessment of past leases, their classification and initial direct costs for existing leases. The Company did not elect to adopt the hindsight practical expedient. The Company recognized material right-of-use assets and liabilities in the Consolidated Balance Sheets for its operating lease commitments with terms greater than 12 months. The adoption of this standard was not material to retained earnings. 2018 lease expense under ASC 840 was $39 million. See Note 9, Leases for additional information. Derivative Financial Instruments The Company employs derivative financial instruments to hedge certain anticipated transactions, firm commitments, and assets and liabilities denominated in foreign currencies. Additionally, the Company utilizes interest rate swaps to convert floating rate debt to fixed rate. The Company records all derivative instruments at fair value and changes in fair value are recorded each period in the consolidated statements of operations or accumulated other comprehensive income (“AOCI”). The Company classifies derivative assets and liabilities as current when the remaining term of the derivative contract is one year or less. The Company has elected to classify the cash flow from derivative instruments in the same category as the cash flows from the items being hedged. Should the Company enter into a derivative instrument that included an other-than-insignificant financing element then all cash flows will be classified as financing activities in the Consolidated Statements of Cash Flows as required by US GAAP. Pension and Other Postemployment Benefits Some of the employees of the Company and its subsidiaries are covered by government or Company-sponsored defined benefit plans and defined contribution plans. Additionally, certain union and salaried employee groups in the United States are covered by postemployment healthcare plans. Costs for Company-sponsored defined benefit and postemployment benefit plans are based on expected return on plan assets, discount rates, employee compensation increase rates and health care cost trends. Expected return on plan assets, discount rates and health care cost trend assumptions are particularly important when determining the Company’s benefit obligations and net periodic benefit costs associated with postemployment benefits. Changes in these assumptions can impact the Company’s earnings. In determining the cost of postemployment benefits, certain assumptions are established annually to reflect market conditions and plan experience to appropriately reflect the expected costs as actuarially determined. These assumptions include medical inflation trend rates, discount rates, employee turnover and mortality rates. The Company predominantly uses liability durations in establishing its discount rates, which are observed from indices of high-grade corporate bond yields in the respective economic regions of the plans. The expected return on plan assets is the weighted average long-term expected return based upon asset allocations and historic average returns for the markets where the assets are invested, principally in foreign locations. The Company reports the funded status of its defined benefit pension and other postemployment benefit plans on its consolidated balance sheets as a net liability or asset. Additional information related to the impact of changes in these assumptions is provided in Note 16, Benefit Plans. Accruals for Self-Insured Losses The Company maintains insurance for certain risks, including workers’ compensation, and is self-insured for employee related healthcare benefits. The Company accrues for the expected costs associated with these risks by considering historical claims experience, demographic factors, severity factors and other relevant information. Costs are recognized in the period the claim is incurred, and the financial statement accruals include an estimate of claims incurred but not yet reported. The Company has stop-loss coverage to limit its exposure to any significant exposure on a per claim basis. Litigation The Company and its subsidiaries, from time to time, are parties to lawsuits arising from operations. The Company records liabilities when a loss is probable and can be reasonably estimated. If these estimates are in the form of ranges, the Company records the liabilities at the most likely outcome within the range. If no point within the range represents a better estimate of the probable loss, then the low point in the range is accrued. The ranges established by management are based on analysis made by internal and external legal counsel who considers information known at the time. If the Company determines that a contingency is reasonably possible, it considers the same information to estimate the possible exposure and discloses any material potential liability. These loss contingencies are monitored regularly for a change in fact or circumstance that would require an accrual adjustment. The Company believes it has estimated liabilities for probable losses appropriately in the past; however, the unpredictability of litigation and court decisions could cause a liability to be incurred in excess of estimates. Legal costs related to these lawsuits are expensed as incurred. Foreign Currency Translation The functional currency for foreign operations, except for those in highly inflationary economies, generally has been determined to be the local currency. Assets and liabilities of foreign subsidiaries are translated at foreign exchange rates on the balance sheet date; revenue and expenses are translated at the average year-to-date foreign exchange rates. The effects of these translation adjustments are reported in Equity within AOCI in the Consolidated Balance Sheets. During the year ended December 31, 2020, the Company had losses of $54 million on its loans designated as hedges of net investments and translation gains of $235 million. During the year ended December 31, 2019, the Company had gains of $4 million on its loans designated as hedges of net investments and translation losses of $87 million. Foreign currency gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved and remeasurement adjustments in countries with highly inflationary economies are included in income. During the year ended December 31, 2020, 2019, 2018, net foreign currency gain of $13 million, gain of $27 million in 2019, and loss of $6 million in 2018, respectively, are included in Other expense (income), net in the Consolidated Statements of Operations. Revenue Recognition Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally this occurs with the transfer of risk and/or control of products to its customers. Sales, value-added, and other taxes collected concurrent with revenue-producing activities are excluded from revenue. For most of consumable, technology, and equipment products, the Company transfers control and recognizes revenue when products are shipped from the Company's manufacturing facility or warehouse to the customer (distributors and direct to dentists). For contracts with customers that contain destination shipping terms, revenue is not recognized until risk has transferred and the goods are delivered to the agreed upon destination. The amount of consideration received and revenue recognized varies with changes in marketing incentives (e.g. discounts, rebates, free goods) and returns offered to customers and their customers. When the Company gives customers the right to return eligible products and receive credit, returns are estimated based on an analysis of historical experience. However, returns of products, excluding warranty-related returns, are infrequent and insignificant. The Company adjusts the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Depending on the terms of the arrangement, the Company may also defer the recognition of a portion of revenue on a relative stand-alone selling price basis when performance obligations are not yet satisfied (e.g., free extended maintenance/service contracts, software and licenses, customer loyalty points and coupon programs). The Company uses an observable price, typically average selling price, to determine the stand-alone selling price for separate performance obligations. The Company determines the stand-alone selling price, based on Company geographic sales locations' database of pricing and discounting practices for the specific product or service when sold separately, and utilizes this data to arrive at average selling prices by product. Revenue is then allocated proportionately, based on the determined stand-alone selling price, to the unsatisfied performance obligation, which is deferred until satisfied. At December 31, 2020, the Company had $41 million of deferred revenue recorded in Accrued liabilities in the Consolidated Balance Sheets. The Company expects to recognize significantly all of the deferred revenue within the next twelve months. The prior year amount of $29 million was recognized in the current year. The Company has elected to account for shipping and handling activities as a fulfillment cost within the cost of products sold, and records shipping and handling costs collected from customers in net sales. The Company has adopted two practical expedients: the “right to invoice” practical expedient, which allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date; and relief from considering the existence of a significant financing component when the payment for the good or service is expected to be one year or less. The Company offers discounts to its customers and distributors if certain conditions are met. Discounts are primarily based on the volume of products purchased or targeted to be purchased by the customer or distributor. Discounts are deducted from revenue at the time of sale or when the discount is offered, whichever is later. The Company estimates volume discounts based on the individual customer’s or distributor's historical and estimated future product purchases. Certain of the Company’s customers are offered cash rebates based on targeted sales increases. The Company estimates rebates based on the forecasted performance of a customer and their expected level of achievement within the rebate programs. In accounting for these rebate programs, the Company records an accrual and reduces net sales ratably as sales occur over the rebate period. The Company updates the accruals for these rebate programs as actual results and updated forecasts impact the estimated achievement for customers within the rebate programs. A portion of the Company’s net sales is comprised of sales of precious metals generated through its precious metal dental alloy product offerings. As the precious metal content of the Company’s sales is largely a pass-through to customers, the Company uses its cost of precious metal purchased as a proxy for the precious metal content of sales, as the precious metal content of sales is not separately tracked and invoiced to customers. The Company believes that it is reasonable to use the cost of precious metal content purchased in this manner since precious metal alloy sale prices are typically adjusted when the prices of underlying precious metals change. Cost of Products Sold Cost of products sold represents costs directly related to the manufacture and distribution of the Company’s products. Primary costs include raw materials, packaging, direct labor, overhead, shipping and handling, warehousing and the depreciation of manufacturing, warehousing and distribution facilities. Overhead and related expenses include salaries, wages, employee benefits, utilities, lease costs, maintenance and property taxes. Warranties The Company provides warranties on certain equipment products. Estimated warranty costs are accrued when sales are made to customers. Estimates for warranty costs are based primarily on historical warranty claim experience. Warranty costs are included in Cost of products sold in the Consolidated Statements of Operations. The Company’s warranty expense and warranty accrual were as follows: December 31, (in millions) 2020 2019 2018 Warranty Expense $ 29 $ 36 $ 24 Warranty Accrual 18 18 13 Selling, General and Administrative Expenses Selling, general and administrative expenses represent indirect costs associated with generating revenues and in managing the business of the Company. Such costs include advertising and other marketing expenses, salaries, employee benefits, incentive compensation, research and development, travel, office expenses, lease costs, amortization of capitalized software and depreciation of administrative facilities. Advertising cost are expensed as incurred. Research and Development Costs Research and development (“R&D”) costs relate primarily to salaries and direct overhead expenses associated with R&D activities. In addition, the Company contracts with outside vendors to conduct R&D activities. All such R&D costs are charged to expense when incurred. The Company capitalizes the costs of equipment that have general R&D uses and expenses such equipment that is solely for specific R&D projects. The depreciation expense related to this capitalized equipment is included in the Company’s R&D costs. Software development costs related to software to be sold, leased, or otherwise marketed incurred prior to the attainment of technological feasibility are considered R&D and are expensed as incurred. Once technological feasibility is established, software development costs are capitalized until the product is available for general release to customers. Amortization of these costs are included in Cost of products sold over the estimated life of the products. R&D costs were $115 million, $131 million and $161 million for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in Selling, general and administrative expenses in the Consolidated Statements of Operations. Stock Compensation Stock-based compensation is measured at the grant date, fair value, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity awards). The compensation cost is only recognized for the portion of the awards that are expected to vest. Stock options granted become exercisable as determined by the grant agreement and expire ten years after the date of grant under these plans. Restricted Stock Units ("RSU") vest as determined by the grant agreement and are subject to a service condition, which requires grantees to remain employed by the Company during the period following the date of grant. Under the terms of the RSUs, the vesting period is referred to as the restricted period. In addition to the service condition, certain granted RSUs are subject to performance requirements that can vary between the first year and up to the final year of the RSU award. If targeted performance is not met the RSU granted is adjusted to reflect the achievement level. Upon the expiration of the applicable restricted period and the satisfaction of all conditions imposed, the restrictions on RSUs will lapse, and shares of common stock will be issued as payment for each vested RSU. Upon death, disability or qualified retirement all awards become immediately exercisable for up to one year. Awards are expensed as compensation over their respective vesting periods or to the eligible retirement date if shorter. The Company records forfeitures on stock-based compensation as the participant terminates rather than estimating forfeitures. During 2019, the Company granted certain performance-based RSUs issued under the 2016 Omnibus Incentive Plan to provide performance targets for the Company's previously disclosed three year restructuring program announced in November 2018. The adjusted operating income margin performance target approximates the adjusted operating income margin targets previously disclosed by |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The computation of basic and diluted earnings (loss) per common share for the years ended December 31 were as follows: Basic (Loss) Earnings Per Common Share (in millions, except per share amounts) 2020 2019 2018 Net (loss) income attributable to Dentsply Sirona $ (83) $ 263 $ (1,011) Weighted average common shares outstanding 219.2 223.1 224.3 (Loss) earnings per common share - basic $ (0.38) $ 1.18 $ (4.51) Diluted (Loss) Earnings Per Common Share (in millions, except per share amounts) 2020 2019 2018 Net (loss) income attributable to Dentsply Sirona $ (83) $ 263 $ (1,011) Weighted average common shares outstanding 219.2 223.1 224.3 Incremental weighted average shares from assumed exercise of dilutive options from stock-based compensation awards — 1.3 — Total weighted average diluted shares outstanding 219.2 224.4 224.3 (Loss) earnings per common share - diluted $ (0.38) $ 1.17 $ (4.51) The calculation of weighted average diluted common shares outstanding excluded 0.9 million and 1.6 million of potentially diluted common shares because the Company reported a net loss for year ended December 31, 2020 and 2018, respectively. Stock options and RSUs of 3.1 million, 3.1 million, and 3.5 million equivalent shares of common stock that were outstanding during the years ended December 31, 2020, 2019, and 2018, respectively were excluded from the computation of weighted average diluted shares outstanding because their effect would be antidilutive. On March 9, 2020, the Company entered into an accelerated share repurchase agreement with a financial institution pursuant to an Accelerated Share Repurchase Transaction (“ASR Agreement") to purchase $140 million of the Company's common stock. Pursuant to the terms of the ASR Agreement, the Company delivered $140 million cash to a financial institution and received an initial delivery of 2.7 million shares of the Company’s common stock on March 9, 2020 based on a closing market price of $42.12 per share and the applicable contractual discount. The Company received an additional 1.0 million shares on May 12, 2020, upon termination of the ASR Agreement. The average price per share for the total shares purchased under the ASR Agreement was $38.88 per share. |
COMPREHENSIVE (LOSS) INCOME
COMPREHENSIVE (LOSS) INCOME | 12 Months Ended |
Dec. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
COMPREHENSIVE (LOSS) INCOME | COMPREHENSIVE (LOSS) INCOME AOCI includes foreign currency translation adjustments related to consolidation of the Company’s foreign subsidiaries, fair value adjustments related to the Company’s derivative financial instruments, and actuarial gains and losses related to the Company's pension plans. These changes are recorded in AOCI net of any related tax adjustments. For the years ended December 31, 2020, 2019 and 2018, these tax adjustments were $216 million, $173 million and $158 million, respectively, primarily related to foreign currency translation adjustments. The cumulative foreign currency translation adjustments included translation losses of $25 million and $260 million at December 31, 2020 and 2019, respectively, and which included losses of $162 million and $108 million, at December 31, 2020 and 2019, respectively, on loans designated as hedges of net investments. Changes in AOCI, net of tax, by component for the years ended December 31, 2020 and 2019 were as follows: (in millions) Foreign Currency Translation Gain (Loss) Gain and (Loss) on Cash Flow Hedges Gain and (Loss) on Net Investment and Fair Value Hedges Pension Liability Gain (Loss) Total Balance, net of tax, at December 31, 2019 $ (368) $ (11) $ (101) $ (120) $ (600) Other comprehensive income (loss) before reclassifications and tax impact 151 (17) (23) (26) 85 Tax benefit 30 1 5 7 43 Other comprehensive income (loss), net of tax, before reclassifications $ 181 $ (16) $ (18) $ (19) $ 128 Amounts reclassified from accumulated other comprehensive income, net of tax — 2 — 6 8 Net increase (decrease) in other comprehensive income 181 (14) (18) (13) 136 Balance, net of tax, at December 31, 2020 $ (187) $ (25) $ (119) $ (133) $ (464) (in millions) Foreign Currency Translation Gain (Loss) Gain and (Loss) on Cash Flow Hedges Gain and (Loss) on Net Investment and Fair Value Hedges Pension Liability Gain (Loss) Total Balance, net of tax, at December 31, 2018 $ (284) $ 1 $ (112) $ (84) $ (479) Other comprehensive (loss) income before reclassifications and tax impact (88) (17) 18 (54) (141) Tax benefit (expense) 4 4 (7) 14 15 Other comprehensive (loss) income, net of tax, before reclassifications $ (84) $ (13) $ 11 $ (40) $ (126) Amounts reclassified from accumulated other comprehensive income, net of tax — 1 — 4 5 Net (decrease) increase in other comprehensive income (84) (12) 11 (36) (121) Balance, net of tax, at December 31, 2019 $ (368) $ (11) $ (101) $ (120) $ (600) Reclassification out of AOCI to the Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018 were as follows: Details about AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Consolidated Statements of Operations Year Ended December 31, (in millions) 2020 2019 2018 Loss on derivative financial instruments: Interest rate swaps $ (4) $ (2) $ (2) Interest expense Foreign exchange forward contracts 2 1 (9) Cost of products sold Net loss before tax $ (2) $ (1) $ (11) Tax impact — — 1 Provision for income taxes Net loss after tax $ (2) $ (1) $ (10) Realized gain on available-for-sale securities: Available -for-sale-securities $ — $ — $ 45 Other expense (income), net Tax impact — — (1) Provision for income taxes Net gain after tax $ — $ — $ 44 Amortization of defined benefit pension and other postemployment benefit items: Amortization of prior service benefits $ 1 $ 1 $ — (a) Amortization of net actuarial losses (9) (6) (6) (a) Net loss before tax $ (8) $ (5) $ (6) Tax impact 2 1 2 Provision for income taxes Net loss after tax $ (6) $ (4) $ (4) Total reclassifications for the period $ (8) $ (5) $ 30 (a) These AOCI components are included in the computation of net periodic benefit cost for the years ended December 31, 2020, 2019, and 2018, respectively. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Acquisitions 2020 Transactions On December 31, 2020, the effective date of the transaction, the Company acquired 100% of the outstanding interests of Byte, a privately-held company, for approximately $1.0 billion using cash on hand. Byte is a doctor-directed, direct-to-consumer, clear aligner business. The acquisition is expected to enhance scale and accelerate the growth and profitability of the Company's combined clear aligners business. The preliminary fair values of the assets acquired and liabilities assumed in connection with the Byte acquisition for the year ended December 31, 2020 were as follows: (in millions) Cash and cash equivalents $ 13 Current assets 15 Intangible assets 416 Current liabilities (32) Long-term assets (liabilities), net 2 Net assets acquired 414 Goodwill 631 Purchase consideration $ 1,045 The purchase price has been allocated on the basis of the preliminary estimates of fair values of assets acquired and liabilities assumed, which resulted in the recording of $631 million in goodwill. The amount of goodwill is considered to represent the value associated with workforce and synergies the two companies anticipate realizing as a combined company, including alignment with the Company’s existing clear aligner business, and is deductible for tax purposes. Final consideration is subject to a post-closing adjustment for the change in working capital to the date of closing, which is expected to be completed by the end of the first quarter of 2021. Management is continuing to finalize its valuation of certain assets including other intangible assets and will conclude its valuation no later than one year from the acquisition date. Intangible assets acquired were as follows: Weighted Average Useful Life (in millions, except for useful life) Amount (in years) Non-compete agreements $ 16 5 Technology know-how 210 10 Tradenames and trademarks 190 20 Total $ 416 The results of operations for this business upon the effective date of the transaction have been included in the accompanying financial statements. These results, as well as the historical results for the Byte business for the both the years ended December 31, 2020 and 2019, are not material in relation to the Company’s net sales and earnings for those periods. The Company therefore does not believe this acquisition represents a material transaction requiring the supplemental pro-forma information prescribed by ASC 805 and accordingly, this information is not presented. 2018 Transactions On May 1, 2018, the Company acquired all of the outstanding shares of privately held OraMetrix, Inc. for $120 million, with an additional payment totaling $30 million, subject to meeting certain earn-out provisions. During the year ended December 31, 2019, the Company paid the earn-out provision. OraMetrix specializes in orthodontic treatment planning software, wire bending, and clear aligner manufacturing and is headquartered in Richardson, Texas. The Company recorded $58 million in goodwill related to the fair value of assets acquired and liabilities assumed and the consideration given for the acquisition. The purchase price has been assigned on the basis of the fair values of assets acquired and liabilities assumed. Goodwill is considered to represent the value associated with workforce and synergies the two companies anticipate realizing as a combined company. The goodwill is not expected to be deductible for tax purposes. Intangible assets acquired were as follows: Weighted Average Useful Life (in millions, except for useful life) Amount (in years) Customer relationships $ 18 15 Developed technology and patents 65 15 Tradenames and trademarks 14 Indefinite Total $ 97 The results of operation for this business have been included in the accompanying financial statements as of the effective date of the transaction. The purchase price has been assigned on the basis of the fair values of assets acquired and liabilities assumed. This transaction was not material to the Company’s net sales and net loss attributable to Dentsply Sirona for the year ended December 31, 2018. Acquisition-related costs incurred for the year ended December 31, 2020 were $16 million, consisting primarily of legal and professional fees in relation to the Byte acquisition, and are recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. Acquisition-related costs were immaterial for the years ended December 31, 2019 and 2018. Investment in Affiliates During the three months ended December 31, 2020, the Company paid $45 million for a minority ownership position in a privately-held dental services company. The investment is recorded as an equity-method investment and recorded in Other non-current assets, net in the Consolidated Balance Sheets. The Company's share of earnings from this investment, which are immaterial to the year ended December 31, 2020, are included in the Other income and expense line item within the Consolidated Statements of Operations. During the year ended December 31, 2018, the Company sold its direct investment in DIO Corporation, which resulted in a gain of $44 million was recorded in Other expense (income), net in the Consolidated Statements of Operations. |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION The Company’s two operating segments are organized primarily by product and generally have overlapping geographical presence, customer bases, distribution channels, and regulatory oversight. These operating segments also comprise the Company’s reportable segments in accordance with how the Company’s chief operating decision-maker regularly reviews financial results and uses this information to evaluate the Company’s performance and allocate resources. The Company evaluates performance of the segments based on the net sales and adjusted operating income. Segment adjusted operating income is defined as operating income before income taxes and before certain corporate headquarters unallocated costs, restructuring and other costs, interest expense, interest income, other expense (income), net, amortization of intangible assets and depreciation resulting from the fair value step-up of property, plant, and equipment from acquisitions. A description of the products and services provided within each of the Company’s two reportable segments is provided below. Technologies & Equipment This segment is responsible for the design, manufacture, and sales of the Company’s Dental Technology and Equipment Products and Healthcare Consumable Products. These products include dental implants, CAD/CAM systems, orthodontic clear aligners products, imaging systems, treatment centers, instruments, as well as consumable medical device products. Consumables This segment is responsible for the design, manufacture, and sales of the Company’s Dental Consumable Products which include preventive, restorative, endodontic, and dental laboratory products. The Company’s segment information for the years ended December 31 was as follows: Net Sales Year Ended December 31, (in millions) 2020 2019 2018 Technologies & Equipment $ 1,961 $ 2,283 $ 2,168 Consumables 1,381 1,746 1,818 Total net sales $ 3,342 $ 4,029 $ 3,986 Depreciation and Amortization Year Ended December 31, (in millions) 2020 2019 2018 Technologies & Equipment $ 261 $ 258 $ 238 Consumables 61 54 91 All Other (a) 12 11 2 Total $ 334 $ 323 $ 331 (a) Includes amounts recorded at Corporate headquarters. Segment Adjusted Operating Income Year Ended December 31, (in millions) 2020 2019 2018 Technologies & Equipment (a) $ 387 $ 467 $ 312 Consumables (a) 314 440 462 Segment adjusted operating income $ 701 $ 907 $ 774 Reconciling items (income) expense: All other (a) (b) 281 269 220 Goodwill impairment 157 — 1,086 Restructuring and other costs 77 81 221 Interest expense 48 30 37 Interest income (1) (2) (2) Other expense (income), net 1 (12) (35) Amortization of intangible assets 192 189 198 Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations 6 7 7 (Loss) income before income taxes $ (60) $ 345 $ (958) (a) Certain charges related to discontinuance of product lines which were previously reported in adjusted operating income for the reportable segments, $38 million in 2019 and $36 million in 2018, have been reclassified to the “All other” category to conform to current year presentation and our internal reporting to our Chief Operating Decision Maker package ("CODM"). These amounts are not material to the measure of segment results for the years presented. (b) Includes the results of unassigned Corporate headquarters costs and inter-segment eliminations. Capital Expenditures Year Ended December 31, (in millions) 2020 2019 2018 Technologies & Equipment $ 50 $ 73 $ 126 Consumables 26 34 43 All Other (a) 11 16 14 Total $ 87 $ 123 $ 183 (a) Includes capital expenditures of Corporate headquarters. Assets Year Ended December 31, (in millions) 2020 2019 Technologies & Equipment $ 7,014 $ 5,927 Consumables 2,172 2,443 All Other (a) 156 233 Total $ 9,342 $ 8,603 (a) Includes the results of unassigned Corporate headquarters costs and inter-segment eliminations. Geographic Information The following table sets forth information about the Company’s operations in different geographic areas for the years ended December 31, 2020, 2019, and 2018. Net sales reported below represent revenues for shipments made by operating businesses located in the country or territory identified, including export sales. Property, plant and equipment, net, represents those long-lived assets held by the operating businesses located in the respective geographic areas. (in millions) United States Germany Sweden Other Foreign Consolidated 2020 Net sales $ 1,109 $ 439 $ 53 $ 1,741 $ 3,342 Property, plant, and equipment, net 145 337 110 199 791 2019 Net sales $ 1,375 $ 478 $ 56 $ 2,120 $ 4,029 Property, plant, and equipment, net 168 327 99 208 802 2018 Net sales $ 1,270 $ 494 $ 55 $ 2,167 $ 3,986 Property, plant, and equipment, net 211 340 99 221 871 Product and Customer Information Net sales by product category were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Dental technology and equipment products $ 1,674 $ 2,005 $ 1,897 Dental consumables products 1,337 1,688 1,740 Healthcare consumable products 331 336 349 Total net sales $ 3,342 $ 4,029 $ 3,986 Dental Technology and Equipment Products Dental technology products consist of basic and high-tech dental equipment such as treatment centers, imaging equipment, dental handpieces and computer aided design and machining "CAD/CAM" systems equipment for dental practitioners. The product category also includes high-tech and state-of-art dental implants and related scanning equipment and treatment software, orthodontic clear aligner products and appliances for dental practitioners and specialists. The Company offers the broadest line of products to fully outfit a dental practitioner’s office. Treatment centers comprise a broad range of products from basic dentist chairs to sophisticated chair-based units with integrated diagnostic, hygiene and ergonomic functionalities, as well as specialist centers used in preventative treatment and for training purposes. Imaging systems consist of a broad range of diagnostic imaging systems for 2D or 3D, panoramic, and intra-oral applications. Dental CAD/CAM Systems are products designed for dental offices used for dental restorations, which includes several types of restorations, such as inlays, onlays, veneers, crowns, bridges, copings and bridge frameworks made from ceramic, metal or composite blocks. This product line also includes high-tech CAD/CAM techniques of chairside economical restoration of aesthetic ceramic dentistry, or CEREC equipment. This equipment allows for in-office application that enables dentists to produce high quality restorations from ceramic material and insert them into the patient’s mouth during a single appointment. CEREC has a number of advantages compared to the traditional out-of-mouth pre-shaped restoration method, as CEREC does not require a physical model, restorations can be created in the dentist’s office and the procedure can be completed in a single visit. Dental Consumable Products Dental consumable products consist of value-added dental supplies and small equipment used in dental offices for the treatment of patients. It also includes specialized treatment products used within the dental office and laboratory settings including products used in the preparation of dental appliances by dental laboratories. Dentsply Sirona’s dental supplies include endodontic (root canal) instruments and materials, dental anesthetics, prophylaxis paste, dental sealants, impression materials, restorative materials, tooth whiteners and topical fluoride. Small equipment products include intraoral curing light systems, dental diagnostic systems and ultrasonic scalers and polishers. The Company’s products used in dental laboratories include dental prosthetics, including artificial teeth, precious metal dental alloys, dental ceramics and crown and bridge materials. Dental laboratory equipment products include laboratory-based CAD/CAM milling systems, amalgamators, mixing machines and porcelain furnaces. Healthcare Consumable Products Healthcare consumable products consist mainly of urology catheters, medical drills and other non-medical products. Concentration Risk For the year ended December 31, 2020, two customers each accounted for approximately 14% and 10% of consolidated net sales. At December 31, 2020, one customer accounted for approximately 18% of the consolidated accounts receivable balance. For the year ended December 31, 2019, one customer accounted for approximately 13% of consolidated net sales. At December 31, 2019, two customers accounted for approximately 12% and 17% of the consolidated accounts receivable balance. For the year ended December 31, 2018, one customer accounted for approximately 10% of consolidated net sales. At December 31, 2018, two customers accounted for approximately 10% and 13% of the consolidated accounts receivable balance. For the years ended December 31, 2020, 2019, and 2018, third party export sales from the U.S. were less than ten percent of consolidated net sales. |
OTHER EXPENSE (INCOME), NET
OTHER EXPENSE (INCOME), NET | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE (INCOME), NET | OTHER EXPENSE (INCOME), NET Other expense (income), net, were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Foreign exchange transaction (gain) loss $ (13) $ (27) $ 6 Other expense (income), net 14 15 (41) Total other expense (income), net $ 1 $ (12) $ (35) |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET Inventories, net of inventory valuation reserves, were as follows: Year Ended December 31, (in millions) 2020 2019 Finished goods $ 264 $ 356 Work-in-process 68 83 Raw materials and supplies 134 123 Inventories, net $ 466 $ 562 The Company’s inventory valuation reserve was $117 million and $85 million at December 31, 2020 and 2019, respectively. The increase in the inventory reserve is primarily due to the full year 2020 restructuring plans, see Note 17, Restructuring and Other Costs. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, were as follows: Year Ended December 31, (in millions) 2020 2019 Assets, at cost: Land $ 54 $ 52 Buildings and improvements 595 554 Machinery and equipment 1,414 1,327 Construction in progress 120 102 $ 2,183 $ 2,035 Less: Accumulated depreciation 1,392 1,233 Property, plant and equipment, net $ 791 $ 802 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES The Company leases real estate, automobiles and equipment under various operating and finance leases. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the implicit rate is not readily determinable in most of the Company’s lease agreements, the Company uses its estimated secured incremental borrowing rate, based on the information available, at commencement of the lease to determine the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Beginning January 1, 2019, any new real estate and equipment operating lease agreements with lease and non-lease components, were accounted for as a single lease component; auto leases were accounted for as separate lease components. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of approximately 1 year to 10 years. Many of the Company's real estate and equipment leases have one or more options to renew, with terms that can extend primarily from 1 year to 3 years, which are not included in the initial lease term. The Company does not have lease agreements with residual value guarantees, sale-and-leaseback terms, or material restrictive covenants. The Company does not have any material sublease arrangements. The net present value of finance and operating lease right-of-use assets and liabilities were as follows: Year Ended December 31, (in millions, except percentages) Location in the Consolidated Balance Sheets 2020 2019 Assets Finance leases Property, plant, and equipment, net $ 1 $ 1 Operating leases Operating lease right-of-use assets, net 176 159 Total right-of-use assets $ 177 $ 160 Liabilities Current liabilities Operating leases Accrued liabilities $ 48 $ 44 Noncurrent liabilities Finance leases Long-term debt 1 1 Operating leases Operating lease liabilities 130 120 Total lease liabilities $ 179 $ 165 Supplemental information: Weighted-average discount rate Finance leases 3.7 % 3.6 % Operating leases 3.0 % 2.9 % Weighted-average remaining lease term in years Finance leases 6.5 7.0 Operating leases 5.2 5.3 The lease cost recognized in the Consolidated Statements of Operations for the year ended December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Operating lease cost $ 57 $ 55 Short-term lease cost 1 1 Variable lease cost 9 10 Total lease cost $ 67 $ 66 The contractual maturity dates of the remaining lease liabilities for the year ended December 31, 2020 were as follows: (in millions) Finance Leases Operating Leases Total 2021 $ — $ 52 $ 52 2022 — 41 41 2023 — 31 31 2024 — 22 22 2025 — 14 14 2026 and beyond 1 34 35 Total lease payments $ 1 $ 194 $ 195 Less imputed interest — 16 16 Present value of lease liabilities $ 1 $ 178 $ 179 The supplemental cash flow information for the year ended December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 56 $ 53 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 43 $ 35 |
Leases | LEASES The Company leases real estate, automobiles and equipment under various operating and finance leases. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the implicit rate is not readily determinable in most of the Company’s lease agreements, the Company uses its estimated secured incremental borrowing rate, based on the information available, at commencement of the lease to determine the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Beginning January 1, 2019, any new real estate and equipment operating lease agreements with lease and non-lease components, were accounted for as a single lease component; auto leases were accounted for as separate lease components. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of approximately 1 year to 10 years. Many of the Company's real estate and equipment leases have one or more options to renew, with terms that can extend primarily from 1 year to 3 years, which are not included in the initial lease term. The Company does not have lease agreements with residual value guarantees, sale-and-leaseback terms, or material restrictive covenants. The Company does not have any material sublease arrangements. The net present value of finance and operating lease right-of-use assets and liabilities were as follows: Year Ended December 31, (in millions, except percentages) Location in the Consolidated Balance Sheets 2020 2019 Assets Finance leases Property, plant, and equipment, net $ 1 $ 1 Operating leases Operating lease right-of-use assets, net 176 159 Total right-of-use assets $ 177 $ 160 Liabilities Current liabilities Operating leases Accrued liabilities $ 48 $ 44 Noncurrent liabilities Finance leases Long-term debt 1 1 Operating leases Operating lease liabilities 130 120 Total lease liabilities $ 179 $ 165 Supplemental information: Weighted-average discount rate Finance leases 3.7 % 3.6 % Operating leases 3.0 % 2.9 % Weighted-average remaining lease term in years Finance leases 6.5 7.0 Operating leases 5.2 5.3 The lease cost recognized in the Consolidated Statements of Operations for the year ended December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Operating lease cost $ 57 $ 55 Short-term lease cost 1 1 Variable lease cost 9 10 Total lease cost $ 67 $ 66 The contractual maturity dates of the remaining lease liabilities for the year ended December 31, 2020 were as follows: (in millions) Finance Leases Operating Leases Total 2021 $ — $ 52 $ 52 2022 — 41 41 2023 — 31 31 2024 — 22 22 2025 — 14 14 2026 and beyond 1 34 35 Total lease payments $ 1 $ 194 $ 195 Less imputed interest — 16 16 Present value of lease liabilities $ 1 $ 178 $ 179 The supplemental cash flow information for the year ended December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 56 $ 53 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 43 $ 35 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS 2020 Annual Goodwill Impairment Testing The Company performed the required annual impairment tests of goodwill at April 30, 2020 on its five reporting units. To determine the fair value of these reporting units, the Company uses a discounted cash flow model as its valuation technique to measure the fair value for its reporting units. The discounted cash flow model uses five- to ten- year forecasted cash flows plus a terminal value based on a multiple of earnings or by capitalizing the last period’s cash flows using a perpetual growth rate. The Company's significant assumptions in the discounted cash flow models include, but are not limited to, the discount rates, revenue growth rates, perpetual revenue growth rates, and operating margin percentages of the reporting unit's business. The Company considered the current market conditions when determining its assumptions. The total forecasted cash flows for each of the reporting units were discounted using rates ranging between 9.0% to 11.5%. Further, the Company reconciled the aggregate fair values of its reporting units to its market capitalization, which included a reasonable control premium based on market conditions. The revenue growth rate assumptions were developed in consideration of future expectations which include, but were not limited to, distribution channel changes, impact from competition, and new product development changes for these reporting units. The Company also considered the current and projected market and economic conditions amid the ongoing COVID-19 pandemic for the dental industry both in the U.S. and globally, when determining its assumptions. As a result of the annual tests of goodwill performed at April 30, 2020, no impairment was identified. The use of estimates and the development of assumptions results in uncertainties around forecasted cash flows. For this reason, in conjunction with the annual test, the Company applied a hypothetical sensitivity analysis to its reporting units. If the discount rate of these reporting units had been hypothetically increased by 100 basis points at April 30, 2020, or, in a separate test, each reporting unit were subject to a 10% hypothetical reduction in fair value, it is noted that the Implants reporting unit within the Company's Technologies & Equipment segment would have a fair value that would approximate book value. For the Equipment & Instruments reporting unit that recorded goodwill impairment at March 31, 2020 as described below, the implied fair value continues to approximate net book value at April 30, 2020, and therefore this reporting unit is sensitive to any unfavorable change in assumptions. Goodwill associated with the Implants and Equipment & Instruments reporting units was $1,232 million and $292 million, respectively as of December 31, 2020. During the time subsequent to the annual evaluation, and at December 31, 2020, the Company considered whether any events or changes in circumstances had resulted in the likelihood that the goodwill of any of its reporting units may have been impaired. It is management's assessment that no such events have occurred. A change in any of the estimates and assumptions used in the annual test, as well as further unfavorable changes in the ongoing COVID-19 pandemic, a decline in the overall markets served by these reporting units, among other factors, could have a negative material impact to the fair value of the reporting units and could result in a future impairment charge. There can be no assurance that the Company’s future goodwill impairment testing will not result in a material charge to earnings. 2020 Annual Indefinite-Lived Intangibles Impairment Testing The Company also assessed the annual impairment of indefinite-lived intangible assets at April 30, 2020, which largely consists of acquired tradenames and trademarks, in conjunction with the annual impairment tests of goodwill. As a result of the annual impairment test of indefinite-lived intangible assets, no impairment was identified. The Company applied a hypothetical sensitivity analysis. With the exception of the previously impaired intangible assets, it was noted that is the fair value of each of these indefinite-lived intangibles assets had been hypothetically reduced by 10% or the discount rate had been hypothetically increased by 100 basis points at April 30, 2020, the fair value of these assets would still exceed their book value. For the indefinite-lived intangible assets that were previously impaired at March 31, 2020 as described below, which are comprised of certain tradenames and trademarks related to the Equipment & Instruments reporting unit, the implied fair values continue to approximate net book values at April 30, 2020 and are therefore sensitive to any unfavorable changes in assumptions. At December 31, 2020, the remaining indefinite-lived tradenames and trademarks related to the Equipment & Instruments reporting unit was $82 million, of which one business unit in the Equipment & Instruments reporting unit makes up a significant portion of the balance. Should the Company’s analysis in the future indicate additional unfavorable impacts related to the ongoing COVID-19 pandemic, an increase in discount rates, or a decline in the use of the tradenames and trademarks, any of which could have a negative material impact to the implied fair values and could result in a future impairment to the carrying value of the indefinite-lived intangible assets. There can be no assurance that the Company’s future indefinite-lived intangible asset impairment testing will not result in a material charge to earnings. March 31, 2020 Impairment In the first quarter of 2020, the Company concluded that due to the negative effects of the COVID-19 pandemic on revenue and profitability, a triggering event existed for four of the Company’s five reporting units containing a goodwill balance as of March 31, 2020. The Company had experienced a meaningful decrease in customer demand for its products as a result of stay-at-home orders, travel restrictions, and social distancing guidelines set forth by governmental authorities throughout the world in response to the COVID-19 pandemic. These actions meaningfully impacted end-user demand for routine dental procedures in most of the Company's markets. The Company updated its future forecasted revenues, operating margins, and discount rates for all four of the reporting units which were impacted by the continuing pandemic. Based on the Company's best estimates and assumptions at March 31, 2020, the Company believed forecasted future revenue growth related to the Equipment & Instruments reporting unit will experience an extended recovery period in returning to the pre-COVID-19 levels. The Company believed that dental practitioners will focus their initial post-COVID-19 equipment spending on products that deliver short-term revenue gains for their practices before replacing the Imaging, Treatment Center, and Instruments products that comprise the Equipment & Instruments reporting unit. After this extended recovery period, the Company expects the growth rates of the Equipment & Instruments reporting unit to return to pre-COVID-19 levels. To determine the fair value of each of the four reporting units for which a triggering event was concluded to exist, the Company used a discounted cash flow model consistent with the valuation approach described above for the annual impairment test, and utilized discount rates for each of the reporting units which ranged between 9.5% to 11.5%. As a result of these models which included updates to the estimates and assumptions resulting from the ongoing COVID-19 pandemic the Company determined that the goodwill associated with the Equipment & Instruments reporting unit was impaired and recorded an impairment charge of $157 million. This reporting unit is within the Technologies & Equipment segment. Based on the quantitative assessments performed for the three other reporting units, the Company believed that its adjusted long-term forecasted cash flows did not indicate that the fair value of these reporting units may be below their carrying value. Additionally, the Company also concluded in the first quarter of 2020 that due to the negative effects of the COVID-19 pandemic on revenue and profitability, a triggering event also existed for all but two of the Company’s indefinite-lived intangible assets as of March 31, 2020. In preparing the financial statements for the three months ended March 31, 2020 in conjunction with the goodwill impairment, the Company tested the indefinite-lived intangible assets related to the businesses within the four reporting units for impairment. The Company performed impairment tests using an income approach, more specifically a relief from royalty method. In the development of the forecasted cash flows, the Company applied significant judgment to determine key assumptions, including royalty rates, and discount rates. Royalty rates used are consistent with those assumed for the original purchase accounting valuation. If the carrying value exceeds the fair value, an impairment loss in the amount equal to the excess is recognized. The first quarter impairment test resulted in an impairment charge of $39 million related to certain tradenames and trademarks related to the Equipment & Instruments reporting unit. This impairment charge was recorded in Restructuring and other costs in the Consolidated Statements of Operations. The impairment charge was driven by a decline in forecasted sales as a result of the COVID-19 pandemic as discussed above, as well as an unfavorable change in the discount rates. The Company utilized discount rates ranging from 10.0% to 17.5%. The assumptions and estimates used in determining the fair value of the indefinite-lived intangible assets contain uncertainties and any changes to these assumptions and estimates, including unfavorable changes related to the COVID-19 pandemic, could have a negative impact and result in a material future impairment charge to the Company's results of operations. Based on the quantitative assessments performed for the indefinite-lived intangible assets related to the businesses in the three other reporting units, the Company believed that its adjusted long-term forecasted cash flows did not indicate that the fair value of the indefinite-lived intangible assets may be below their carrying value. 2019 Annual Goodwill Impairment Testing Effective January 1, 2019, the Company realigned certain businesses between segments resulting in a change from eleven reporting units to five. As a result, the Company transferred goodwill between segments due to these changes. Affected reporting units, including the CAD/CAM and Treatment Center reporting units in the Technologies & Equipment segment, were tested for potential impairment of goodwill before the transfers. No goodwill impairment was identified due to the realignment. The Company further performed the required annual impairment tests of goodwill at April 30, 2019 on all five reporting units. The performance of the Company’s annual impairment test did not result in any impairment of the Company’s goodwill. 2019 Indefinite-Lived Intangibles Impairment During the three months ended March 31, 2019, the Company impaired $5 million of product tradenames and trademarks within the Technologies & Equipment segment. The impairment was the result of a change in forecasted sales related to the divestitures of non-strategic product lines. The Company further assessed the annual impairment of the remaining indefinite-lived intangible assets at April 30, 2019, which largely consists of acquired tradenames and trademarks, in conjunction with the annual impairment tests of goodwill. The performance of the Company’s annual impairment test did not result in any impairment of the Company’s indefinite-lived intangible assets. 2018 Goodwill Impairment In connection with the April 30, 2018 annual impairment test of goodwill the Company determined that the goodwill associated with the CAD/CAM, Imaging, and Orthodontics businesses, all within the Technologies & Equipment segment, was impaired. As a result, the Company recorded a goodwill impairment charge of $1,086 million. The 2018 goodwill impairment charges were driven by lower than expected sales growth and operating margins, in turn driven by transition of distribution relationships for the equipment businesses and increased price competition. 2018 Indefinite-Lived Intangibles Impairment As a result of the annual impairment tests of indefinite-lived intangible assets as of April 30, 2018, the Company previously recorded an impairment charge of $179 million in the twelve months ended December 31, 2018 which was recorded in Restructuring and other costs in the Consolidated Statements of Operations. The impaired indefinite-lived intangible assets were tradenames and trademarks related to the CAD/CAM, Imaging, and Instrument businesses. The impairment charge was primarily driven by a decline in forecasted sales resulting from increased competition and the impact of low-cost competitive products. A reconciliation of changes in the Company’s goodwill by reportable segment were as follows (the segment information below reflects the current structure for all periods shown): (in millions) Technologies & Equipment Consumables Total Balance at December 31, 2018 $ 2,545 $ 886 $ 3,431 Acquisition activity 3 — 3 Divestiture of business (4) — (4) Effect of exchange rate changes (28) (5) (33) Balance at December 31, 2019 $ 2,516 $ 881 $ 3,397 Acquisition activity 631 — 631 Impairment (157) — (157) Effect of exchange rate changes 102 13 115 Balance at December 31, 2020 $ 3,092 $ 894 $ 3,986 The gross carrying amount of goodwill and the cumulative goodwill impairment were as follows: Year Ended December 31, 2020 2019 (in millions) Gross Carrying Amount Cumulative Impairment Net Carrying Amount Gross Carrying Amount Cumulative Impairment Net Carrying Amount Technologies & Equipment $ 5,985 $ (2,893) $ 3,092 $ 5,253 $ (2,737) $ 2,516 Consumables 894 — 894 881 — 881 Total effect of cumulative impairment $ 6,879 $ (2,893) $ 3,986 $ 6,134 $ (2,737) $ 3,397 Identifiable definite-lived and indefinite-lived intangible assets at were as follows: Year Ended December 31, 2020 2019 (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 1,681 $ (677) $ 1,004 $ 1,371 $ (518) $ 853 Tradenames and trademarks 273 (70) 203 79 (63) 16 Licensing agreements 37 (30) 7 36 (28) 8 Customer relationships 1,142 (494) 648 1,070 (399) 671 Total definite-lived $ 3,133 $ (1,271) $ 1,862 $ 2,556 $ (1,008) $ 1,548 Indefinite-lived tradenames and trademarks $ 642 $ — $ 642 $ 628 $ — $ 628 Total identifiable intangible assets $ 3,775 $ (1,271) $ 2,504 $ 3,184 $ (1,008) $ 2,176 Amortization expense for identifiable definite-lived intangible assets for the years ended December 31, 2020, 2019 and 2018 was $192 million, $190 million and $198 million, respectively. The annual estimated amortization expense related to these intangible assets for each of the five succeeding calendar years is $216 million, $215 million, $217 million, $219 million and $223 million for 2021, 2022, 2023, 2024 and 2025, respectively. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets were as follows: Year Ended December 31, (in millions) 2020 2019 Prepaid expenses $ 79 $ 81 Accrued value-added tax on purchases 36 46 Deposits 33 40 Other current assets 66 84 Prepaid expenses and other current assets $ 214 $ 251 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities were as follows: Year Ended December 31, (in millions) 2020 2019 Payroll, commissions, bonuses, other cash compensation and employee benefits $ 142 $ 179 Sales and marketing programs 21 17 Reserve for dealer rebates 134 125 Restructuring costs 31 28 Accrued vacation and holidays 41 37 Professional and legal costs 33 36 Current portion of derivatives 32 3 General insurance 12 12 Warranty liabilities 18 18 Third party royalties 11 11 Deferred income 41 29 Accrued interest 13 11 Accrued property taxes 13 11 Current operating lease liabilities 48 44 Other 63 68 Accrued liabilities $ 653 $ 629 |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Short-Term Debt Short-term debt was as follows: Year Ended December 31, 2020 2019 Principal Interest Principal Interest (in millions except percentages) Balance Rate Balance Rate Other short-term loans $ 3 1.9 % $ 2 3.7 % Add: Current portion of long-term debt 296 — Total short-term debt $ 299 $ 2 Maximum month-end short-term debt outstanding during the year $ 299 $ 148 Average amount of short-term debt outstanding during the year 95 50 Weighted-average interest rate on short-term debt at year-end 1.9 % 3.7 % Short-Term Borrowings The Company has access to a $700 million multi-currency revolving credit facility ("2018 Credit Facility") through July 28, 2024. The facility is unsecured and contains certain affirmative and negative covenants relating to the operations and financial condition of the Company. The most restrictive of these covenants pertain to asset dispositions and prescribed ratios of indebtedness to total capital and operating income, plus depreciation and amortization to interest expense. The credit facility serves as a back-stop facility for the Company's commercial paper program. The Company has a $500 million commercial paper facility. As of December 31, 2020 and 2019, the Company had no outstanding borrowings under this commercial paper facility. The average balance outstanding for the commercial paper facility during the year ended December 31, 2020 was $2 million. In response to the COVID-19 pandemic, the Company took the following actions during the year ended December 31, 2020 to strengthen its liquidity and financial flexibility: • On April 9, 2020, the Company entered into a $310 million 364-day revolving credit facility with a maturity date of April 8, 2021. The 364-day revolving credit facility mirrors the original five-year facility in all major respects and is unsecured. As of December 31, 2020 there were no outstanding borrowings under this facility. • On April 17, 2020, the Company provided a notice to the administrative agent to draw down the full available amount under the 2018 Credit Facility. The Company had previously not drawn down any sums under this facility. The borrowings incurred interest at the rate of adjusted LIBOR plus 1.25%. The Company subsequently repaid the $700 million revolver borrowing on May 26, 2020. • On May 26, 2020, the Company issued $750 million of senior unsecured notes with a final maturity date of June 1, 2030 at a semi-annual coupon rate of 3.25%. The net proceeds were $748 million, net of discount of $2 million. Issuance fees totaled $6 million. The Company paid $31 million to settle the $150 million notional Treasury Rate Lock ("T-Lock") contract which partially hedged the interest rate risk of the note issuance, see Note 18, Financial Instruments and Derivatives. This cost will be amortized over the ten-year life of the notes. The proceeds were used to repay the $700 million borrowed against the 2018 Credit Facility and the remaining proceeds will be used for working capital and other general corporate purposes. • Various other credit facilities: ◦ On May 5, 2020, the Company entered into a 40 million euro 364-day revolving credit facility with a maturity date of April 30, 2021. As of December 31, 2020 there were no outstanding borrowings under this facility. ◦ On May 12, 2020 the Company entered into a 30 million euro 364-day revolving credit facility with a maturity date of May 6, 2021. As of December 31, 2020 there were no outstanding borrowings under this facility. ◦ On June 11, 2020, the Company entered into a 3.3 billion Japanese yen 364-day revolving credit facility with a maturity date of June 11, 2021. As of December 31, 2020 there were no outstanding borrowings under this facility. These agreements are unsecured and contain certain affirmative and negative covenants relating to the operations and financial condition of the Company. Long-Term Debt Long-term debt was as follows: Year Ended December 31, 2020 2019 Principal Interest Principal Interest (in millions except percentages) Balance Rate Balance Rate Fixed rate senior notes $450 million due August 2021 $ 296 4.1 % $ 296 4.1 % Private placement notes 70 million euros due October 2024 85 1.0 % 78 1.0 % Private placement notes 25 million Swiss franc due December 2025 28 0.9 % 26 0.9 % Private placement notes 97 million euros due December 2025 118 2.1 % 109 2.1 % Private placement notes 26 million euros due February 2026 32 2.1 % 29 2.1 % Private placement notes 58 million Swiss franc due August 2026 65 1.0 % 60 1.0 % Private placement notes 106 million euros due August 2026 129 2.3 % 119 2.3 % Private placement notes 70 million euros due October 2027 85 1.3 % 78 1.3 % Private placement notes 8 million Swiss franc due December 2027 8 1.0 % 8 1.0 % Private placement notes 15 million euros due December 2027 18 2.2 % 17 2.2 % Private placement notes 140 million Swiss franc due August 2028 158 1.2 % 145 1.2 % Private placement notes 70 million euros due October 2029 85 1.5 % 78 1.5 % Fixed rate senior notes 750 million due June 2030 750 3.3 % — — % Private placement notes 70 million euros due October 2030 85 1.6 % 78 1.6 % Private placement notes 45 million euros due February 2031 55 2.5 % 51 2.5 % Private placement notes 65 million Swiss franc due August 2031 73 1.3 % 67 1.3 % Private placement notes 12.6 billion Japanese yen due September 2031 122 1.0 % 116 1.0 % Private placement notes 70 million euros due October 2031 85 1.7 % 79 1.7 % Other borrowings, various currencies and rates 7 4 $ 2,284 $ 1,438 Less: Current portion (included in “Notes payable and current portion of long-term debt” in the Consolidated Balance Sheets) 296 — Less: Long-term portion of deferred financing costs 10 5 Long-term portion $ 1,978 $ 1,433 At December 31, 2020, the Company had $1,173 million borrowings available under unused lines of credit, including lines available under its short-term arrangements and revolving credit agreement. The Company’s revolving credit facility, term loans and senior notes contain certain affirmative and negative covenants relating to the Company's operations and financial condition. At December 31, 2020, the Company was in compliance with all debt covenants. The table below reflects the contractual maturity dates of the various long-term borrowings as follows: (in millions) December 31, 2020 2021 $ 296 2022 3 2023 — 2024 86 2025 147 2025 and beyond 1,752 $ 2,284 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
EQUITY | EQUITY At December 31, 2020, the Company had authorization to purchase $1.0 billion in shares of common stock under the share repurchase program and has $350 million remaining under this program. Share repurchases will be made through open market purchases, Rule 10b5-1 plans, accelerated share repurchase transactions and other structured share repurchases, privately negotiated transactions or other transactions in such amounts and at such times as the Company deems appropriate based upon prevailing market and business conditions and other factors. For the years ended December 31, 2020, 2019 and 2018, the Company repurchased outstanding shares of common stock at a cost of $140 million, $260 million and $250 million, respectively. For the years ended December 31, 2020, 2019 and 2018, the Company received proceeds of $11 million, $109 million and $28 million, respectively, primarily as a result of stock options exercised in the amount of 0.3 million, 2.7 million and 1.0 million in each of the years, respectively. It is the Company’s practice to issue shares from treasury stock when options are exercised. Total outstanding shares of common stock and treasury stock were as follows: (in millions) Shares of Common Stock Shares of Treasury Stock Outstanding Shares Balance at December 31, 2017 264.5 (37.7) 226.8 Shares of treasury stock issued — 1.6 1.6 Repurchase of common stock at an average cost of $45.92 — (5.4) (5.4) Balance at December 31, 2018 264.5 (41.5) 223.0 Shares of treasury stock issued — 3.1 3.1 Repurchase of common stock at an average cost of $54.18 — (4.8) (4.8) Balance at December 31, 2019 264.5 (43.2) 221.3 Shares of treasury stock issued — 1.1 1.1 Repurchase of common stock at an average cost of $38.25 — (3.7) (3.7) Balance at December 31, 2020 264.5 (45.8) 218.7 The Company maintains the 2016 Omnibus Incentive Plan (the “Plan”) under which it may grant non-qualified stock options (“NQSOs”), incentive stock options, restricted stock, RSUs 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 authorized grants under the Plan of 25 million shares of common stock, plus any unexercised portion of canceled or terminated stock options granted under the legacy DENTSPLY International Inc. 2010 and 2002 Equity Incentive Plans, as amended, and under the legacy Sirona Dental Systems, Inc. 2015 and 2006 Equity Incentive Plans, as amended. For each restricted stock and RSU issued, it is counted as a reduction of 3.09 shares of common stock available to be issued under the Plan. No key employee may be granted awards in excess of 1 million shares of common stock in any calendar year. The number of shares available for grant under the 2016 Plan at December 31, 2020 is 25 million. Total stock based compensation expense and the tax related benefit were as follows: Year End December 31, (in millions) 2020 2019 2018 Stock option expense $ 7 $ 7 $ 7 RSU expense 39 58 13 Total stock based compensation expense $ 46 $ 65 $ 20 Related deferred income tax benefit $ 5 $ 8 $ 2 For the years ended December 31, 2020, 2019, and 2018, $45 million, $63 million and $18 million, respectively, was recorded in Selling, general and administrative expense and $1 million, $2 million and $1 million, respectively, was recorded in Cost of products sold. For the year ended December 31, 2018, the Company recorded $1 million in Restructuring and other costs in the Consolidated Statements of Operations. There were 1.3 million non-qualified stock options unvested at December 31, 2020. The remaining unamortized compensation cost related to non-qualified stock options is $8 million, which will be expensed over the weighted average remaining vesting period of the options, or 1.8 years. The unamortized compensation cost related to RSUs is $70 million, which will be expensed over the remaining weighted average restricted period of the RSUs, or 2.1 years. The Company uses the Black-Scholes option-pricing model to estimate the fair value of each option awarded. The average assumptions used to determine compensation cost for the Company’s NQSOs issued were as follows: Year End December 31, 2020 2019 2018 Weighted average fair value per share $ 10.03 $ 12.20 $ 12.38 Expected dividend yield 0.84 % 0.71 % 0.64 % Risk-free interest rate 0.77 % 2.36 % 2.72 % Expected volatility 24.0 % 22.6 % 19.7 % Expected life (years) 5.49 6.00 6.07 The total intrinsic value of options exercised for the years ended December 31, 2020, 2019 and 2018 was $3 million, $37 million and $22 million, respectively. The total fair value of shares vested for the years ended December 31, 2020, 2019 and 2018 was $54 million, $44 million and $48 million, respectively. The NQSO transactions for the year ended December 31, 2020 were as follows: Outstanding Exercisable (in millions, except per share amounts) Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value December 31, 2019 3.8 $ 50.02 $ 28 2.7 $ 48.85 $ 23 Granted 0.7 47.84 Exercised (0.3) 39.59 Cancelled (0.2) 56.21 December 31, 2020 4.0 $ 50.01 $ 17 2.7 $ 50.28 $ 12 The weighted average remaining contractual term of all outstanding options is 5.3 years and the weighted average remaining contractual term of exercisable options is 3.9 years. Information about NQSOs outstanding for the year ended December 31, 2020 were as follows: Outstanding Exercisable Number Outstanding at December 31, 2020 Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable at December 31, 2020 Weighted Average Exercise Price Range of Exercise Prices (in millions, except per share amounts and life) 30.01 - 40.00 0.4 1.5 $ 37.54 0.4 $ 37.55 40.01 - 50.00 2.0 6.3 46.83 0.9 45.22 50.01 - 60.00 1.2 4.8 54.82 1.0 54.69 60.01 - 70.00 0.4 5.2 62.26 0.4 62.25 4.0 5.3 $ 50.01 2.7 $ 50.28 The unvested RSU transactions for the year ended December 31, 2020 were as follows: Unvested Restricted Stock Units Shares Weighted Average Grant Date Fair Value (in millions, except per share amounts) Unvested at December 31, 2019 4.5 $ 47.79 Granted 1.0 49.40 Vested (0.9) 49.74 Forfeited (0.4) 46.16 Unvested at December 31, 2020 4.2 $ 47.29 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income (loss) before income taxes were as follows: Year Ended December 31, (in millions) 2020 2019 2018 United States $ (109) $ (110) $ (279) Foreign 49 455 (679) $ (60) $ 345 $ (958) The components of the provision (benefit) for income taxes from operations were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Current: U.S. federal $ (5) $ (11) $ 10 U.S. state 1 1 3 Foreign 91 129 102 Total $ 87 $ 119 $ 115 Deferred: U.S. federal $ — $ (2) $ 46 U.S. state (2) 2 (3) Foreign (62) (37) (105) Total $ (64) $ (37) $ (62) $ 23 $ 82 $ 53 The reconciliation of the U.S. federal statutory tax rate to the effective rate were as follows: Year Ended December 31, 2020 2019 2018 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State income taxes, net of federal benefit 2.3 0.7 (0.1) Federal benefit of R&D and foreign tax credits 15.8 (2.0) 1.0 US other permanent differences (5.6) 0.8 (0.1) Tax effect of international operations 4.7 0.4 1.4 Global Intangible Low Taxed Income (GILTI) (10.9) 3.7 (1.1) Foreign Derived Intangible Income (FDII) 9.9 (0.1) — Net effect of tax audit activity (6.9) 0.4 (1.0) Tax effect of enacted statutory rate changes on Non-U.S. jurisdictions (0.2) 0.1 0.3 Federal tax on unremitted earnings of certain foreign subsidiaries (4.6) 0.1 (0.1) Valuation allowance adjustments (12.9) (1.3) (5.7) U.S. tax reform - net impacts — — 0.4 Tax effect of impairment of goodwill and intangibles (51.0) (0.2) (22.2) Other 0.1 0.2 0.7 Effective income tax rate on operations (38.3 %) 23.8 % (5.5 %) The tax effect of significant temporary differences giving rise to deferred tax assets and liabilities were as follows: Year Ended December 31, 2020 2019 (in millions) Deferred Tax Asset Deferred Tax Liability Deferred Tax Asset Deferred Tax Liability Commission and bonus accrual $ 8 $ — $ 11 $ — Employee benefit accruals 58 — 56 — Inventory 25 — 15 — Identifiable intangible assets — 613 — 631 Insurance premium accruals 3 — 3 — Miscellaneous accruals 11 — 21 — Other 11 — — 2 Unrealized losses included in AOCI 98 — 46 — Property, plant and equipment — 50 — 50 Lease right-of-use asset — 42 — 39 Lease right-of-use liability 42 — 40 — Product warranty accruals 1 — 1 — Foreign tax credit and R&D carryforward 60 — 73 — Restructuring and other cost accruals 9 — 4 — Sales and marketing accrual 7 — 6 — Taxes on unremitted earnings of foreign subsidiaries — 6 — 3 Tax loss carryforwards and other tax attributes 280 — 269 — Subtotal $ 613 $ 711 $ 545 $ 725 Valuation allowances (287) — (288) — Total $ 326 $ 711 $ 257 $ 725 Deferred tax assets and liabilities are included in the following Consolidated Balance Sheets line items at December 31 were as follows: (in millions) 2020 2019 Assets Other noncurrent assets, net $ 8 $ 12 Liabilities Deferred income taxes $ 393 $ 480 The Company has $57 million of foreign tax credit carryforwards at December 31, 2020, of which $8 million will expire in 2024, $39 million will expire in 2025, and $10 million will expire at various times from 2027 through 2030. The Company has tax loss carryforwards related to certain foreign and domestic subsidiaries of approximately $1,278 million at December 31, 2020, of which $1,025 million expires at various times through 2040 and $253 million may be carried forward indefinitely. Included in deferred income tax assets at December 31, 2020 are tax benefits totaling $232 million, before valuation allowances, for the tax loss carryforwards. In addition the Company has recorded a deferred tax asset of $48 million, related to tax attributes. The Company has recorded $214 million of valuation allowance to offset the tax benefit of net operating losses, $57 million to offset the tax benefit of foreign tax credits, and $16 million of valuation allowance for other deferred tax assets. The Company has recorded these valuation allowances due to the uncertainty that these assets can be realized in the future. The Company has provided $6 million of withholding taxes on certain undistributed earnings of its foreign subsidiaries that the Company anticipates will be repatriated. Tax Contingencies The total amount of gross unrecognized tax benefits at December 31, 2020 is approximately $31 million, of this total, approximately $30 million represents the amount of unrecognized tax benefits that, if recognized, would affect the effective income tax rate. It is reasonably possible that certain amounts of unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date of the Company’s consolidated financial statements. Final settlement and resolution of outstanding tax matters in various jurisdictions during the next twelve months could include unrecognized tax benefits of approximately $6 million. Of this approximately $5 million represents the amount of unrecognized tax benefits that, if recognized would affect the effective income tax rate. The total amount of accrued interest and penalties were $4 million and $3 million at December 31, 2020 and 2019, respectively. The Company has consistently classified interest and penalties recognized in its consolidated financial statements as income taxes based on the accounting policy election of the Company. During the years ended December 31, 2020 and 2018, the Company recognized income tax expense of $2 million and $1 million respectively, related to interest and penalties. During the year ended December 31, 2019, the Company recognized income tax benefit of $2 million related to interest and penalties. The Company is subject to U.S. federal income tax as well as income tax of multiple state and foreign jurisdictions. The significant jurisdictions include the U.S., Germany, Sweden and Switzerland. The Company has substantially concluded all U.S. federal income tax matters for years through 2011. The Company is currently under audit for the tax years 2012 and 2013 and 2015 and 2016. For further information on the Internal Revenue Service (“IRS”) Audit, see Note 20, Commitments and Contingencies. The tax years 2014 through 2019 are subject to future potential tax audit adjustments. The Company has concluded audits in Germany through the tax year 2014 and is currently under audit for the years 2015 through 2017. The tax year 2018 is subject to future potential audit adjustments in Germany. The taxable years that remain open for Sweden are 2013 through 2019. For information related to Sweden, see Note 20, Commitments and Contingencies. The taxable years that remain open for Switzerland are 2010 through 2019. The activity recorded for unrecognized tax benefits were as follows: (in millions) 2020 2019 2018 Unrecognized tax benefits at beginning of period $ 24 $ 28 $ 21 Gross change for prior-period positions 1 — 8 Gross change for current year positions 1 — — Decrease due to settlements and payments — (4) — Decrease due to statute expirations — — — Increase due to effect of foreign currency translation 1 — — Decrease due to effect from foreign currency translation — — (1) Unrecognized tax benefits at end of period $ 27 $ 24 $ 28 U.S. Federal Legislative Changes On December 22, 2017, the Tax Cuts and Jobs Act (the "Act" or "U.S. tax reform") was enacted. U.S. tax reform, among other things, reduced the U.S. federal income tax rate to 21% in 2018 from 35%, instituted a dividends received deduction for foreign earnings with a related tax for the deemed repatriation of unremitted foreign earnings and created a new U.S. minimum tax on earnings of foreign subsidiaries. In addition, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for enactment effects of the Act and provides a measurement period of up to one year from the Act’s enactment date for companies to complete their accounting under Accounting Standards Codification No. 740 “Income Taxes”, (“ASC 740”). In accordance with SAB 118, income tax effects of the Act were refined upon obtaining, preparing, and analyzing additional information during the measurement period. At December 31, 2018 the Company had completed its accounting for the tax effects of the Act. Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested amounted to $1,807 million at December 31, 2020 and $1,575 million at December 31, 2019. The Act imposed U.S. tax on all post-1986 foreign unrepatriated earnings accumulated through December 31, 2017. Unrepatriated earnings generated after December 31, 2017, are now subject to tax in the current year. All undistributed earnings are still subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply. It is not practicable to calculate the unrecognized deferred tax liability on undistributed earnings. For the GILTI provision of the Act, the Company has made the policy election to record any liability associated with GILTI in the period in which it is incurred. The U.S. Department of the Treasury continues to issue interpretative guidance and regulations associated with the Act. In March 2020, in response to the impact of the COVID-19 pandemic in the U.S. and across the globe, the U.S. Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act. In December 2020, the U.S. Congress passed a second relief package, Consolidated Appropriations Act, 2021. The enactment period impacts to the Company were immaterial to income tax expense. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS Defined Contribution Plans The Company maintains both U.S. and non-U.S. employee defined contribution plans. The primary U.S. plan, the Dentsply Sirona Inc. 401(k) Savings (the "Plan"), allows eligible employees to contribute a portion of their cash compensation to the plan on a tax-deferred basis, and in most cases, the Company provides a matching contribution. The Plan includes various investment funds. The Company makes a discretionary cash contribution that is initially targeted to be 3% of compensation. Each eligible participant who elects to defer to the Plan will receive a matching contribution of 100% on the first 1% contributed and 50% on the next 5% contributed for a total maximum matching contribution of 3.5%. In addition to the primary U.S. plan, the Company also maintains various other U.S. and non-U.S. defined contribution and non-qualified deferred compensation plans. The annual expenses, net of forfeitures, were $36 million, $35 million and $35 million for the years ended December 31, 2020, 2019, and 2018, respectively. Defined Benefit Plans The Company maintains defined benefit pension plans for certain employees in Austria, France, Germany, Italy, Japan, the Netherlands, Norway, Sweden, Switzerland and Taiwan. These plans provide benefits based upon age, years of service and remuneration. The United States and other foreign pension plans are not significant individually or in the aggregate. Substantially all of the German and Swedish plans are unfunded book reserve plans. Most employees and retirees outside the U.S. are covered by government health plans. The Company predominantly derives its discount rates by applying the specific spot rates along the yield curve to the relevant projected cash flows; or, in markets where there is an absence of a sufficiently deep corporate bond market, it uses liability durations in establishing its discount rates, which are observed from indices of high-grade corporate bond yield curves in the respective economic regions of the plan. For the large defined benefits pension plans, the Company uses a spot rate approach for the estimation of the Service Cost and Interest Cost components of benefit cost by applying the specific spot rates along the yield curve to the relevant projected cash flows. Significant changes in the retirement plan benefit obligations for the year ended December 31, 2020 include a $31 million actuarial loss primarily attributable to the change in discount rates, the effect of which is slightly offset by the change in inflation and salary increase assumptions in some plans. Significant changes in the retirement plan benefit obligations for the year ended December 31, 2019 include a $68 million actuarial loss primarily attributable to the change in discount rates, the effect of which is slightly offset by the change in inflation and salary increase assumptions in some plans. The changes also include a $2 million actuarial gain due to demographic assumption changes and a $13 million actuarial loss due to plan experience different than anticipated. Defined Benefit Pension Plan Assets The primary investment strategy is to ensure that the assets of the plans, along with anticipated future contributions, will be invested in order that the benefit entitlements of employees, pensioners and beneficiaries covered under the plan can be met when due with high probability. Pension plan assets consist mainly of common stock and fixed income investments. The target allocations for defined benefit plan assets are 30% to 65% equity securities, 30% to 65% fixed income securities, 0% to 15% real estate, and 0% to 25% in all other types of investments. Equity securities include investments in companies located both in and outside the U.S. Equity securities in the defined benefit pension plans do not include Company common stock contributed directly by the Company. Fixed income securities include corporate bonds of companies from diversified industries, government bonds, mortgage notes and pledge letters. Other types of investments include investments in mutual funds, common trusts, insurance contracts, hedge funds and real estate. These plan assets are not recorded in the Company’s Consolidated Balance Sheet as they are held in trust or other off-balance sheet investment vehicles. The defined benefit pension plan assets maintained in Austria, France, Germany, Norway, the Netherlands, Switzerland and Taiwan all have separate investment policies but generally have an objective to achieve a long-term rate of return in excess of 4% while at the same time mitigating the impact of investment risk associated with investment categories that are expected to yield greater than average returns. In accordance with the investment policies, the plans’ assets were invested in the following investment categories: interest-bearing cash, U.S. and foreign equities, foreign fixed income securities (primarily corporate and government bonds), insurance company contracts, real estate and hedge funds. Reconciliation of changes in the defined benefit obligations, fair value of assets and statement of funded status were as follows: Year Ended December 31, (in millions) 2020 2019 Change in Benefit Obligation Benefit obligation at beginning of year $ 578 $ 512 Service cost 16 14 Interest cost 5 8 Participant contributions 4 4 Actuarial losses (gains) 31 79 Effect of exchange rate changes 59 (7) Plan curtailments and settlements (1) (23) Benefits paid (17) (9) Benefit obligation at end of year $ 675 $ 578 Change in Plan Assets Fair value of plan assets at beginning of year $ 185 $ 173 Actual return on assets 9 24 Plan settlements — (23) Effect of exchange rate changes 17 2 Employer contributions 15 14 Participant contributions 4 4 Benefits paid (17) (9) Fair value of plan assets at end of year $ 213 $ 185 Funded status at end of year $ (462) $ (393) The amounts recognized in the accompanying Consolidated Balance Sheets, net of tax effects, were as follows: Location In The Year Ended December 31, (in millions) Consolidated Balance Sheets 2020 2019 Deferred tax asset Other noncurrent assets, net $ 49 $ 40 Total assets $ 49 $ 40 Current liabilities Accrued liabilities (10) (9) Other noncurrent liabilities Other noncurrent liabilities (452) (384) Deferred tax liability Deferred income taxes (1) (1) Total liabilities $ (463) $ (394) Accumulated other comprehensive income Accumulated other comprehensive loss 139 113 Net amount recognized $ (275) $ (241) Amounts recognized in AOCI were as follows: Year Ended December 31, (in millions) 2020 2019 Net actuarial loss $ 191 $ 156 Net prior service cost (4) (4) Before tax AOCI $ 187 $ 152 Less: Deferred taxes 48 39 Net of tax AOCI $ 139 $ 113 Information for pension plans with a projected or accumulated benefit obligation in excess of plan assets were as follows: Year Ended December 31, (in millions) 2020 2019 Projected benefit obligation $ 484 $ 398 Accumulated benefit obligation 455 371 Fair value of plan assets 26 8 Components of net periodic benefit cost were as follows: Year Ended December 31, Location in Consolidated (in millions) 2020 2019 2018 Statements of Operations Service cost $ 6 $ 6 $ 6 Cost of products sold Service cost 10 8 10 Selling, general and administrative expenses Interest cost 5 8 7 Other expense (income), net Expected return on plan assets (4) (5) (5) Other expense (income), net Amortization of prior service credit (1) (1) — Other expense (income), net Amortization of net actuarial loss 9 6 6 Other expense (income), net Curtailment and settlement (gains) loss — 6 (1) Other expense (income), net Net periodic benefit cost $ 25 $ 28 $ 23 Other changes in plan assets and benefit obligations recognized in AOCI were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Net actuarial loss (gain) $ 43 $ 53 $ (6) Net prior service cost (credit) — — (3) Amortization (9) (5) (6) Total recognized in AOCI $ 34 $ 48 $ (15) Total recognized in net periodic benefit cost and AOCI $ 59 $ 76 $ 8 Assumptions The weighted average assumptions used to determine benefit obligations for the Company’s plans, principally in foreign locations were as follows: Year Ended December 31, 2020 2019 2018 Interest crediting rate 1.3 % 1.3 % 1.5 % Discount rate 0.6 % 1.0 % 1.8 % Rate of compensation increase 2.4 % 2.5 % 2.5 % The weighted average assumptions used to determine net periodic benefit cost for the Company’s plans, principally in foreign locations were as follows: Year Ended December 31, 2020 2019 2018 Interest crediting rate 1.3 % 1.3 % 1.5 % Discount rate 1.0 % 1.8 % 1.6 % Expected return on plan assets 2.3 % 2.9 % 2.9 % Rate of compensation increase 2.5 % 2.5 % 2.5 % Measurement date 12/31/2020 12/31/2019 12/31/2018 To develop the assumptions for the expected long-term rate of return on assets, the Company considered the current level of expected returns on risk free investments (primarily U.S. government bonds), the historical level of the risk premium associated with the other asset classes in which the assets are invested and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocations to develop the assumptions for the expected long-term rate of return on assets. Fair Value Measurements of Plan Assets The fair value of the Company’s pension plan assets at December 31, 2020 and 2019 is presented in the table below by asset category. Approximately 75% of the total plan assets are categorized as Level 1, and therefore, the values assigned to these pension assets are based on quoted prices available in active markets. For the other category levels, a description of the valuation is provided in Note 1, Significant Accounting Policies, under the “Fair Value Measurement” heading. December 31, 2020 (in millions) Total Level 1 Level 2 Level 3 Assets Category Cash and cash equivalents $ 16 $ 16 $ — $ — Equity securities: International 58 58 — — Fixed income securities: Fixed rate bonds (a) 65 65 — — Other types of investments: Mutual funds (b) 20 20 — — Common trusts (c) 5 — 5 — Insurance contracts 37 — — 37 Hedge funds 12 — — 12 Total $ 213 $ 159 $ 5 $ 49 December 31, 2019 (in millions) Total Level 1 Level 2 Level 3 Assets Category Cash and cash equivalents $ 13 $ 13 $ — $ — Equity securities: International 56 56 — — Fixed income securities: Fixed rate bonds (a) 55 55 — — Other types of investments: Mutual funds (b) 18 18 — — Common trusts (c) 4 — 4 — Insurance contracts 30 — — 30 Hedge funds 9 — — 9 Total $ 185 $ 142 $ 4 $ 39 (a) This category includes fixed income securities invested primarily in Swiss bonds, foreign bonds denominated in Swiss francs, foreign currency bonds, mortgage notes and pledged letters. (b) This category includes mutual funds balanced between moderate-income generation and moderate capital appreciation with investment allocations of approximately 50% equities and 50% fixed income investments. (c) This category includes common/collective funds with investments in approximately 65% equities and 35% in fixed income investments. A reconciliation from December 31, 2019 to December 31, 2020 for the plan assets categorized as Level 3 were as follows: December 31, 2020 (in millions) Insurance Contracts Hedge Funds Total Balance at December 31, 2019 $ 30 $ 9 $ 39 Actual return on plan assets: Relating to assets still held at the reporting date 3 — 3 Purchases, sales and settlements, net — 2 2 Effect of exchange rate changes 4 1 5 Balance at December 31, 2020 $ 37 $ 12 $ 49 December 31, 2019 (in millions) Insurance Contracts Hedge Funds Total Balance at December 31, 2018 $ 28 $ 7 $ 35 Actual return on plan assets: Relating to assets still held at the reporting date 4 (1) 3 Purchases, sales and settlements, net (1) 3 2 Effect of exchange rate changes (1) — (1) Balance at December 31, 2019 $ 30 $ 9 $ 39 Fair values for Level 3 assets are determined as follows: Hedge Funds: The investments are valued using the net asset value provided by the administrator of the fund, which is based on the fair value of the underlying securities. Real Estate: Investment is stated by its appraised value. Insurance Contracts: The value of the asset represents the mathematical reserve of the insurance policies and is calculated by the insurance firms using their own assumptions. Cash Flows In 2021, the Company expects to make employer contributions of $17 million to its defined benefit pension plans. Estimated Future Benefit Payments Total benefits expected to be paid from the plans in the future were as follows: (in millions) Pension Benefits 2021 $ 22 2022 21 2023 21 2024 21 2025 23 2026-2030 121 |
RESTRUCTURING AND OTHER COSTS
RESTRUCTURING AND OTHER COSTS | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER COSTS | RESTRUCTURING AND OTHER COSTS During the year ended December 31, 2020, the Company recorded restructuring and other costs of $123 million which consists primarily of inventory write-downs of $31 million, accelerated depreciation of $14 million, severance costs of $23 million, indefinite-lived intangible asset impairment of $39 million, and other impairments of $8 million. During the year ended December 31, 2019, the Company recorded restructuring and other costs of $128 million, which consists primarily of inventory write-downs of $20 million, accelerated depreciation of $3 million, severance costs of $37 million, fixed asset impairments of $33 million, and $9 million related to impairments of both definite-lived and indefinite-lived intangible assets. During the year ended December 31, 2018, the Company recorded restructuring and other costs of $262 million which consists primarily of inventory write-downs of $13 million, accelerated depreciation of $11 million, severance costs of $25 million, and indefinite-lived intangible asset impairment charges of $179 million. The details of total restructuring and other costs for the years ended 2020, 2019 and 2018 were as follows: Affected Line Item in the Consolidated Statements of Operations Year Ended December 31, (in millions) 2020 2019 2018 Cost of products sold $ 44 $ 25 $ 21 Selling, general, and administrative expenses 2 23 15 Restructuring and other costs 77 81 226 Other income and expenses — (1) — Total restructuring and other costs $ 123 $ 128 $ 262 In November 2018, the Board of Directors of the Company approved a plan to restructure the Company’s business to support revenue growth and margin expansion and to simplify the organization. In July 2020, the Board of Directors of the Company approved an expansion of this plan that further optimizes the Company’s product portfolio and reduces operating expenses. The Company had initially anticipated one-time expenditures and charges of approximately $275 million. The program expansion is expected to result in total charges of approximately $375 million. There can be no assurance that the cost reductions and results will be achieved. The Company announced on August 6, 2020 that it will exit its traditional orthodontics business as well as both exit and restructure certain portions of its laboratory business. The traditional orthodontics business is part of the Technologies & Equipment segment and the laboratory business is part of the Consumables segment. The Company is exiting several of its facilities and reducing its workforce by approximately 4% to 5%. The Company expects to record restructuring charges in a range of $70 million to $80 million for inventory write-downs, severance costs, fixed asset write-offs, and other facility closure costs. During the year ended December 31, 2020, the Company recorded expenses of approximately $59 million related to these actions which consists primarily of inventory write-downs of approximately $31 million, accelerated depreciation of approximately $14 million, and severance costs of approximately $9 million. These expenses are included in the above table. The Company's restructuring accruals at December 31, 2020 were as follows: Severance (in millions) 2018 and Prior Plans 2019 Plans 2020 Plans Total Balance at December 31, 2019 $ 7 $ 20 $ — $ 27 Provisions and adjustments 2 2 28 32 Amounts applied (4) (8) (9) (21) Change in estimates — (7) (2) (9) Balance at December 31, 2020 $ 5 $ 7 $ 17 $ 29 Other Restructuring Costs (in millions) 2018 and Prior Plans 2019 Plans 2020 Plans Total Balance at December 31, 2019 $ 3 $ — $ — $ 3 Provisions and adjustments — 1 3 4 Amounts applied — (1) (1) (2) Balance at December 31, 2020 $ 3 $ — $ 2 $ 5 The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows: (in millions) December 31, 2019 Provisions and Adjustments Amounts Applied Change in Estimates December 31, 2020 Technologies & Equipment $ 19 $ 16 $ (12) $ (7) $ 16 Consumables 11 16 (8) (2) 17 All Other — 4 (3) — 1 Total $ 30 $ 36 $ (23) $ (9) $ 34 The Company's restructuring accruals at December 31, 2019 were as follows: Severances (in millions) 2017 and Prior Plans 2018 Plans 2019 Plans Total Balance at December 31, 2018 $ 27 $ 16 $ — $ 43 Provisions and adjustments 4 1 31 36 Amounts applied (22) (12) (9) (43) Change in estimates (7) — (2) (9) Balance at December 31, 2019 $ 2 $ 5 $ 20 $ 27 Other Restructuring Costs (in millions) 2017 and Prior Plans 2018 Plans 2019 Plans Total Balance at December 31, 2018 $ 3 $ — $ — $ 3 Provisions and adjustments 2 1 3 6 Amounts applied (2) (1) (3) (6) Balance at December 31, 2019 $ 3 $ — $ — $ 3 The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows: (in millions) December 31, 2018 Provisions and Adjustments Amounts Applied Change in Estimates December 31, 2019 Technologies & Equipment (a) $ 33 $ 24 $ (33) $ (5) $ 19 Consumables (a) 13 17 (15) (4) 11 All Other — 1 (1) — — Total $ 46 $ 42 $ (49) $ (9) $ 30 |
FINANCIAL INSTRUMENTS AND DERIV
FINANCIAL INSTRUMENTS AND DERIVATIVES | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS AND DERIVATIVES | FINANCIAL INSTRUMENTS AND DERIVATIVES 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 and interest rates. 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. The Company employs derivative financial instruments to hedge certain anticipated transactions, firm commitments, or assets and liabilities denominated in foreign currencies. Additionally, the Company has utilized interest rate swaps to convert variable rate debt to fixed rate debt. The Company does not hold derivative instruments for trading or speculative purposes. Derivative Instruments The following summarizes the notional amounts of cash flow hedges, hedges of net investments, fair value hedges, and derivative instruments not designated as hedges for accounting purposes, by derivative instrument type at December 31, 2020 and the notional amounts expected to mature during the next 12 months: Aggregate Notional Amount Aggregate Notional Amount Maturing within 12 Months (in millions) Cash Flow Hedges Foreign exchange forward contracts $ 369 $ 281 Total derivative instruments designated as cash flow hedges $ 369 $ 281 Hedges of Net Investments Cross currency basis swaps $ 322 322 Total derivative instruments designated as hedges of net investments $ 322 $ 322 Fair Value Hedges Foreign exchange forward contracts $ 63 $ 44 Total derivative instruments designated as fair value hedges $ 63 $ 44 Derivative Instruments not Designated as Hedges Foreign exchange forward contracts $ 276 $ 276 Total derivative instruments not designated as hedges $ 276 $ 276 Cash Flow Hedges Foreign Exchange Risk Management The Company uses a program to hedge select anticipated foreign currency cash flows to reduce volatility in both cash flows and reported earnings. The Company accounts for the designated foreign exchange forward contracts as cash flow hedges. As a result, the Company records the fair value of the contracts primarily through AOCI based on the assessed effectiveness of the foreign exchange forward contracts. The Company measures the effectiveness of cash flow hedges of anticipated transactions on a spot-to-spot basis rather than on a forward-to-forward basis. Accordingly, the spot-to-spot change in the derivative fair value will be deferred in AOCI and released and recorded in the Consolidated Statements of Operations in the same period that the hedged transaction is recorded. The time-value component of the fair value of the derivative is reported on a straight-line basis in Cost of products sold in the Consolidated Statements of Operations in the period which it is applicable. Any cash flows associated with these instruments are included in operating activities in the Consolidated Statements of Cash Flows. These foreign exchange forward contracts generally have maturities up to 18 months, which is the period over which the Company is hedging exposures to variability of cash flows and the counterparties to the transactions are typically large international financial institutions. Interest Rate Risk Management The Company enters into interest rate swap contracts infrequently as they are only used to manage interest rate risk on long-term debt instruments and not for speculative purposes. Any cash flows associated with these instruments are included in operating activities in the Consolidated Statements of Cash Flows. On May 26, 2020, the Company paid $31 million to settle the $150 million notional T-Lock contract, which partially hedged the interest rate risk of the $750 million senior unsecured notes. This loss will be amortized over the ten-year life of the notes. AOCI Release Overall, the derivatives designated as cash flow hedges are considered to be highly effective for accounting purposes. At December 31, 2020, the Company expects to reclassify $3 million of deferred net losses on cash flow hedges recorded in AOCI in the Consolidated Statements of Operations during the next 12 months. For the rollforward of derivative instruments designated as cash flow hedges in AOCI see Note 3, Comprehensive (Loss) Income. Hedges of Net Investments in Foreign Operations The Company has significant investments in foreign subsidiaries. The net assets of these subsidiaries are exposed to volatility in currency exchange rates. The Company employs both derivative and non-derivative financial instruments to hedge a portion of this exposure. The derivative instruments consist of foreign exchange forward contracts and cross currency basis swaps. The non-derivative instruments consist of foreign currency denominated debt held at the parent company level. Translation gains and losses related to the net assets of the foreign subsidiaries are offset by gains and losses in derivative and non-derivative financial instruments, which are designated as hedges of net investments and are included in AOCI. The time-value component of the fair value of the derivative is reported on a straight-line basis in Other expense (income), net in the Consolidated Statements of Operations in the applicable period. Any cash flows associated with these instruments are included in investing activities in the Consolidated Statements of Cash Flows except for derivative instruments that include an other-than-insignificant financing element, for which all cash flows are classified as financing activities in the Consolidated Statements of Cash Flows. The fair value of the foreign exchange forward contracts and cross currency basis swaps is the estimated amount the Company would receive or pay at the reporting date, taking into account the effective interest rates, cross currency swap basis rates and foreign exchange rates. The effective portion of the change in the value of these derivatives is recorded in AOCI, net of tax effects. On April 7, 2020, the Company terminated its entire foreign exchange forward contracts net investment hedge portfolio early which resulted in a $48 million cash receipt. The Company elected to enter into this transaction to convert the favorable gain position into additional liquidity. Fair Value Hedges The Company has intercompany loans denominated in Swedish kronor that are exposed to volatility in currency exchange rates. The Company employs derivative financial instruments to hedge this exposure. The Company accounts for these designated foreign exchange forward contracts as fair value hedges. The Company measures the effectiveness of fair value hedges of anticipated transactions on a spot-to-spot basis rather than on a forward-to-forward basis. Accordingly, the spot-to-spot change in the derivative fair value will be recorded in the Consolidated Statements of Operations. Any cash flows associated with these instruments are included in operating activities in the Consolidated Statements of Cash Flows. Derivative Instruments Not Designated as Hedges The Company enters into derivative instruments with the intent to partially mitigate the foreign exchange revaluation risk associated with recorded assets and liabilities that are denominated in a non-functional currency. The Company primarily uses foreign exchange forward contracts to hedge these risks. The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying non-functional currency balances and are recorded in Other expense (income), net in the Consolidated Statements of Operations. Any cash flows associated with the foreign exchange forward contracts and interest rate swaps not designated as hedges are included in operating activities in the Consolidated Statements of Cash Flows. Derivative Instrument Activity The amount of gains and losses recorded in AOCI in the Consolidated Balance Sheets, Cost of products sold, Interest expense, and Other expense (income), net in the Company’s Consolidated Statements of Operations related to all derivative instruments were as follows: Year Ended December 31, 2020 (in millions) Gain (Loss) in AOCI Consolidated Statements of Operations Location Effective Portion Reclassified from AOCI into Income (Expense) Ineffective Portion Recognized in Income (Expense) Recognized in Income (Expense) Cash Flow Hedges Foreign exchange forward contracts $ (2) Cost of products sold $ 2 $ 4 $ — Interest rate swaps (16) Interest expense (4) — — Total for cash flow hedging $ (18) $ (2) $ 4 $ — Hedges of Net Investments Cross currency basis swaps $ (26) Interest expense $ — $ — $ 9 Foreign exchange forward contracts 6 Other expense (income), net — 6 — Total for net investment hedging $ (20) $ — $ 6 $ 9 Fair Value Hedges Foreign exchange forward contracts $ (3) Interest expense $ — $ 3 $ — Total for fair value hedging $ (3) $ — $ 3 $ — Year Ended December 31, 2019 (in millions) Gain (Loss) in AOCI Consolidated Statements of Operations Location Effective Portion Reclassified from AOCI into Income (Expense) Ineffective Portion Recognized in Income (Expense) Recognized in Income (Expense) Cash Flow Hedges Foreign exchange forward contracts $ (6) Cost of products sold $ 1 $ 2 $ — Interest rate swaps (11) Interest expense (2) — — Total for cash flow hedging $ (17) $ (1) $ 2 $ — Hedges of Net Investments Cross currency basis swaps $ 9 Interest expense $ — $ — $ 8 Foreign exchange forward contracts 9 Other expense (income), net — 22 — Total for net investment hedging $ 18 $ — $ 22 $ 8 Fair Value Hedges Foreign exchange forward contracts $ 3 Interest expense $ — $ 3 $ — Total for fair value hedging $ 3 $ — $ 3 $ — . Year Ended December 31, 2018 (in millions) Gain (Loss) in AOCI Consolidated Statements of Operations Location Effective Portion Reclassified from AOCI into Income (Expense) Ineffective Portion Recognized in Income (Expense) Recognized in Income (Expense) Cash Flow Hedges Foreign exchange forward contracts $ 5 Cost of products sold $ (9) $ — $ — Interest rate swaps — Interest expense (2) — — Other expense (income), net — 1 — Total for cash flow hedging $ 5 $ (11) $ 1 $ — Hedges of Net Investments Cross currency basis swaps $ 15 Interest expense $ — $ — $ 7 Other expense (income), net (3) — — Foreign exchange forward contracts 21 Other expense (income), net — 16 — Total for net investment hedging $ 36 $ (3) $ 16 $ 7 Consolidated Statements of Operations Location Gain (Loss) Recognized December 31, (in millions) 2020 2019 2018 Derivative Instruments not Designated as Hedges Foreign exchange forward contracts Other expense (income), net $ 7 $ (3) $ (6) Total for instruments not designated as hedges $ 7 $ (3) $ (6) Consolidated Balance Sheets Location of Derivative Fair Values The fair value and the location of the Company's derivatives in the Consolidated Balance Sheets were as follows: Year Ended December 31, 2020 (in millions) Prepaid Expenses and Other Current Assets Other Noncurrent Assets Accrued Liabilities Other Noncurrent Liabilities Designated as Hedges: Foreign exchange forward contracts $ 5 $ 2 $ 10 $ 3 Cross currency basis swaps — — 20 — Total $ 5 $ 2 $ 30 $ 3 Not Designated as Hedges: Foreign exchange forward contracts $ 3 $ — $ 2 $ — Total $ 3 $ — $ 2 $ — Year Ended December 31, 2019 (in millions) Prepaid Expenses and Other Current Assets Other Noncurrent Assets Accrued Liabilities Other Noncurrent Liabilities Designated as Hedges: Foreign exchange forward contracts $ 27 $ 11 $ 1 $ 2 Interest rate swaps — — — 11 Cross currency basis swaps — 7 — — Total $ 27 $ 18 $ 1 $ 13 Not Designated as Hedges: Foreign exchange forward contracts $ 2 $ — $ 2 $ — Total $ 2 $ — $ 2 $ — Balance Sheet Offsetting Substantially all of the Company’s derivative contracts are subject to netting arrangements; whereby the right to offset occurs in the event of default or termination in accordance with the terms of the arrangements with the counterparty. While these contracts contain the enforceable right to offset through netting arrangements with the same counterparty, the Company elects to present them on a gross basis in the Consolidated Balance Sheets. Offsetting of financial assets and liabilities under netting arrangements at December 31, 2020 were as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (in millions) Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/Pledged Net Amount Assets Foreign exchange forward contracts $ 9 $ — $ 9 $ (9) $ — $ — Total assets $ 9 $ — $ 9 $ (9) $ — $ — Liabilities Foreign exchange forward contracts $ 15 $ — $ 15 $ — $ — $ 15 Cross currency basis swaps 20 — 20 (7) — 13 Total liabilities $ 35 $ — $ 35 $ (7) $ — $ 28 Offsetting of financial assets and liabilities under netting arrangements at December 31, 2019 were as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (in millions) Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/Pledged Net Amount Assets Foreign exchange forward contracts $ 39 $ — $ 39 $ (8) $ — $ 31 Cross currency basis swaps 7 — 7 (1) — 6 Total assets $ 46 $ — $ 46 $ (9) $ — $ 37 Liabilities Foreign exchange forward contracts $ 3 $ — $ 3 $ (3) $ — $ — Interest rate swaps 11 — 11 (6) — 5 Total liabilities $ 14 $ — $ 14 $ (9) $ — $ 5 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Assets and liabilities measured at fair value on a recurring basis The Company estimated the fair value and carrying value of its total long-term debt, including current portion, was $2,509 million and $2,281 million, respectively, at December 31, 2020. At December 31, 2019, the Company estimated the fair value and carrying value was $1,441 million. The fair value of long-term debt is based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available at December 31, 2020 to companies with similar credit ratings for issues with similar terms and maturities. It is considered a Level 2 fair value measurement. The interest rate on the outstanding principal of the $450 million Senior Notes is a fixed rate of 4.1% and the interest rate on the outstanding principal of the $750 million Senior Notes is a fixed rate of 3.3%. The fair value of each of the Senior Notes is based on interest rates at December 31, 2020. For additional details on interest rates of long-term debt, please see Note 13, Financing Arrangements. The Company’s financial assets and liabilities set forth by level within the fair value hierarchy that were accounted for at fair value on a recurring basis were as follows: Year Ended December 31, 2020 (in millions) Total Level 1 Level 2 Level 3 Assets Foreign exchange forward contracts $ 10 $ — $ 10 $ — Total assets $ 10 $ — $ 10 $ — Liabilities Cross currency interest rate swaps $ 20 $ — $ 20 $ — Foreign exchange forward contracts 15 — 15 — Contingent considerations on acquisitions 5 — — 5 Total liabilities $ 40 $ — $ 35 $ 5 Year Ended December 31, 2019 (in millions) Total Level 1 Level 2 Level 3 Assets Cross currency interest rate swaps $ 7 $ — $ 7 $ — Foreign exchange forward contracts 40 — 40 — Total assets $ 47 $ — $ 47 $ — Liabilities Interest rate swaps $ 11 $ — $ 11 $ — Foreign exchange forward contracts 4 — 4 — Contingent considerations on acquisitions 9 — — 9 Total liabilities $ 24 $ — $ 15 $ 9 Derivative valuations are based on observable inputs to the valuation model including interest rates, foreign currency exchange rates, and credit risks. The Company utilizes interest rates swaps and foreign exchange forward contracts that are considered cash flow hedges. In addition, the Company at times employs certain cross currency interest rate swaps and forward exchange contracts that are considered hedges of net investment in foreign operations. Both types of designated derivative instruments are further discussed in Note 18, Financial Instruments and Derivatives. Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (level 3) The Company’s Level 3 liabilities at December 31, 2020 are related to earn-out obligations on prior acquisitions that were assumed as part of the merger with Sirona. The following table presents a reconciliation of the Company’s Level 3 holdings measured at fair value on a recurring basis using unobservable inputs: (in millions) Level 3 Balance, December 31, 2018 $ 9 Unrealized gain: Reported in Other expense (income), net 2 Payments (2) Effect of exchange rate changes — Balance, December 31, 2019 $ 9 Unrealized gain: Reported in Other expense (income), net — Payments (4) Effect of exchange rate changes — Balance, December 31, 2020 $ 5 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES As previously disclosed, in 2017, the Division of Enforcement of the SEC asked the Company to provide documents and information relating to the Company’s accounting and disclosures related to various matters including the Company’s distributors and their levels of inventory. On December 16, 2020, the Company and the SEC entered into a settlement resolving this matter. Pursuant to the administrative order settling this matter, under which the Company neither admitted nor denied the SEC’s findings (except as to the SEC’s jurisdiction), the Company agreed to cease and desist from committing or causing any violations and any future violations of Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder, and pay a $1 million civil penalty. The $1 million settlement amount, which had previously been recorded as an accrued liability within the Company’s consolidated balance sheet as of December 31, 2019, was paid in December 2020. On January 11, 2018, Tom Redlich, a former employee, filed a lawsuit against the Company, demanding supplemental compensation pursuant to an agreement allegedly entered into with Sirona Dental GmbH which was intended to entice Mr. Redlich to continue to work for the company for no less than eight years following the date of this agreement. The Company filed its response on April 4, 2018, denying the authenticity and enforceability of, and all liability under, the alleged agreement. Mr. Jost Fischer, upon invitation of the Company, joined the litigation against Mr. Redlich as a third party. In his submission to the Court, Mr. Fischer disputed the central allegations raised by Mr. Redlich in his lawsuit. The Court held several hearings in the matter, and then closed the hearings in June 2019 pending the Court’s decision on the capacity of Mr. Fischer to enter into a binding agreement of the type alleged by Mr. Redlich in the manner alleged. On November 5, 2019, the Company received the Court’s judgment rejecting Mr. Redlich’s lawsuit and dismissing his claims. Mr. Redlich appealed in December 2019 and the Company filed its response in January 2020 seeking to uphold the Court’s ruling. On February 27, 2020, the Company received the Appellate Court’s decision rejecting Mr. Redlich’s appeal and upholding the decision of the lower court dismissing his claims. The Court of Appeals has denied Mr. Redlich the right to file a further appeal in this matter, however, on March 23, 2020, Mr. Redlich filed an extraordinary appeal with the Austrian Supreme Court which will assess the appeal. If the Austrian Supreme Court accepts Mr. Redlich’s extraordinary appeal, the Company will then file its response. On January 25, 2018, Futuredontics, Inc., a former wholly-owned subsidiary of the Company, received service of a purported class action lawsuit brought by Henry Olivares and other similarly situated individuals in the Superior Court of the State of California for the County of Los Angeles. In January 2019, an amended complaint was filed adding another named plaintiff, Rachael Clarke, and various claims. The plaintiff class alleges several violations of the California wage and hours laws, including, but not limited to, failure to provide rest and meal breaks and the failure to pay overtime. The parties have engaged in written and other discovery. On February 5, 2019, Plaintiff Calethia Holt (represented by the same counsel as Mr. Olivares and Ms. Clarke) filed a separate representative action in Los Angeles Superior Court alleging a single violation of the Private Attorneys’ General Act that is based on the same underlying claims as the Olivares/Clarke lawsuit. On April 5, 2019, Plaintiff Kendra Cato filed a similar action in Los Angeles Superior Court alleging a single violation of the Private Attorneys’ General Act that is based on the same underlying claims as the Olivares/Clarke lawsuit. The Company has agreed to resolve all three actions (Olivares, Holt, and Cato), the parties to each action are in the process of finalizing the settlement terms, and the parties will then seek court approval of the settlements. The expected settlement amount, which is immaterial to the financial statements, has been recorded as an accrued liability within the Company's consolidated balance sheet as of December 31, 2020. On June 7, 2018, and August 9, 2018, two putative class action suits were filed, and later consolidated, in the Supreme Court of the State of New York, County of New York claiming that the Company and certain individual defendants, violated U.S. securities laws (the "State Court Action") by making material misrepresentations and omitting required information in the December 4, 2015 registration statement filed with the SEC in connection with the Merger. The amended complaint alleges that the defendants failed to disclose, among other things, that a distributor had purchased excessive inventory of legacy Sirona products and that three distributors of the Company's products had been engaging in anticompetitive conduct. The plaintiffs seek to recover damages on behalf of a class of former Sirona shareholders who exchanged their shares for shares of the Company's stock in the Merger. On September 26, 2019, the Court granted the Company's motion to dismiss all claims and a judgment dismissing the case was subsequently entered. On February 4, 2020, the Court denied plaintiffs' post-judgment motion to vacate or modify the judgment and to grant them leave to amend their complaint. The plaintiffs appealed the dismissal and the denial of the post-judgment motion to the Supreme Court of the State of New York, Appellate Division, First Department, and the Company cross-appealed select rulings in the Court's decision dismissing the action. The plaintiffs' appeals and the Company's cross-appeal were consolidated and argued on January 12, 2021. On February 2, 2021, the Appellate Division issued its decision upholding the dismissal of the State Court Action with prejudice on statute of limitations grounds. On December 19, 2018, a related putative class action was filed in the U.S. District Court for the Eastern District of New York against the Company and certain individual defendants (the "Federal Class Action"). The plaintiff makes similar allegations and asserts the same claims as those asserted in the State Court Action. In addition, the plaintiff alleges that the defendants violated U.S. securities laws by making false and misleading statements in quarterly and annual reports and other public statements between February 20, 2014, and August 7, 2018. The plaintiff asserts claims on behalf of a putative class consisting of (a) all purchasers of the Company's stock during the period February 20, 2014 through August 7, 2018 and (b) former shareholders of Sirona who exchanged their shares of Sirona stock for shares of the Company's stock in the Merger. The Company moved to dismiss the amended complaint on August 15, 2019. On January 8, 2021, the parties filed a stipulation, which is subject to the Court's approval, (1) withdrawing the Company's motion to dismiss without prejudice, (2) allowing plaintiff to file a second amended complaint by January 22, 2021, and (3) providing for a briefing schedule on a motion to dismiss that will be completed by May 13, 2021. The plaintiff filed its second amended complaint on January 22, 2021, and the Company intends to move to dismiss the second amended complaint. On April 29, 2019, two purported stockholders of the Company filed a derivative action on behalf of the Company in the U.S. District Court for the District of Delaware against the Company's directors (the "Stockholder's Derivative Action"). Based on allegations similar to those asserted in the class actions described above, the plaintiffs allege that the directors caused the Company to misrepresent its business prospects and thereby subjected the Company to multiple securities class actions and other litigation. On September 20, 2019, the plaintiffs in the Stockholder's Derivative Action filed an amended derivative complaint on behalf of the Company in the U.S. District Court for the District of Delaware against the Company's directors. The plaintiffs assert claims for breach of fiduciary duty, unjust enrichment, waste of corporate assets, and violations of the U.S. securities laws. The plaintiffs seek relief that includes, among other things, monetary damages and various corporate governance reforms. The Company filed a motion to dismiss, and on July 31, 2020 the Magistrate Judge issued a report and recommendation to the District Court Judge recommending dismissal of the case with prejudice. On September 25, 2020, the District Court Judge issued an order adopting the Magistrate Judge’s report dismissing the case, but without prejudice, and provided the plaintiffs with three weeks to file a motion to amend their complaint. On October 16, 2020, the plaintiffs filed a notice advising the Court that they would not be amending their complaint. On October 23, 2020, the Court issued an order dismissing the case with prejudice as to the plaintiffs. The same day, the plaintiffs submitted a letter to the Board of Directors demanding that the Board investigate and commence legal proceedings against the same current and former directors and officers of the Company previously named as defendants in the Stockholder's Derivative Action on the basis of the same claims alleged in the Stockholder's Derivative Action. On November 6, 2020, the Company sent a letter to counsel for the plaintiffs stating that the Board would consider the litigation demand and respond with its decision. The Company intends to defend itself vigorously in these actions. As a result of an audit by the IRS for fiscal years 2012 through 2013, on February 11, 2019, the IRS issued to the Company a “30-day letter” and a Revenue Agent’s Report (“RAR”), relating to the Company’s worthless stock deduction in 2013 in the amount of $546 million. The RAR disallows the deduction and, after adjusting the Company’s net operating loss carryforward, asserts that the Company is entitled to a refund of $5 million for 2012, has no tax liability for 2013, and owes a deficiency of $17 million in tax for 2014, excluding interest. In accordance with ASC 740, the Company recorded the tax benefit associated with the worthless stock deduction in the Company’s 2012 financial statements. In March 2019, the Company submitted a formal protest disputing on multiple grounds the proposed taxes. The Company and its advisors discussed its position with the IRS Appeals Office Team on October 28, 2020 and, on November 13, 2020, submitted a supplemental response to questions raised by the Appeals Team. The Company’s position continues to be reviewed by the IRS Appeals Office team. The Company believes the IRS' position is without merit and believes that it is more likely-than-not the Company’s position will be sustained in 2021 upon further review by the IRS Appeals Office Team. The Company has not accrued a liability relating to the proposed tax adjustments. However, the outcome of this dispute involves a number of uncertainties, including those inherent in the valuation of various assets at the time of the worthless stock deduction, and those relating to the application of the Internal Revenue Code and other federal income tax authorities and judicial precedent. Accordingly, there can be no assurance that the dispute with the IRS will be resolved favorably. If determined adversely, the dispute would result in a current period charge to earnings and could have a material adverse effect in the consolidated results of operations, financial position, and liquidity of the Company. The Swedish Tax Agency has disallowed certain of the Company’s interest expense deductions for the tax years from 2013 to 2018. If such interest expense deductions were disallowed, the Company would be subject to an additional $57 million in tax expense. The Company has appealed the disallowance to the Swedish Administrative Court. With respect to such deductions taken in the tax years from 2013 to 2014, the Court ruled against the Company on July 5, 2017. On August 7, 2017, the Company appealed the unfavorable decision of the Swedish Administrative Court. On November 5, 2018, the Company delivered its final argument to the Administrative Court of Appeals at a hearing. The European Union Commission has taken the view that Sweden’s interest deduction limitation rules are incompatible with European Union law and supporting legal opinions, and therefore the Company has not paid the tax or made provision in its financial statements for such potential expense. This view has now been confirmed by the European Union Court of Justice in a preliminary ruling requested by the Swedish Supreme Administrative Court in a pending case. The Company intends to vigorously defend its position and pursue related appeals. In addition to the matters disclosed above, the Company is, from time to time, subject to a variety of litigation and similar proceedings incidental to its business. These legal matters primarily involve claims for damages arising out of the use of the Company’s products and services and claims relating to intellectual property matters including patent infringement, employment matters, tax matters, commercial disputes, competition and sales and trading practices, personal injury, and insurance coverage. The Company may also become subject to lawsuits as a result of past or future acquisitions or as a result of liabilities retained from, or representations, warranties or indemnities provided in connection with, divested businesses. Some of these lawsuits may include claims for punitive and consequential, as well as compensatory damages. Based upon the Company’s experience, current information, and applicable law, it does not believe that these proceedings and claims will have a material adverse effect on its consolidated results of operations, financial position, or liquidity. However, in the event of unexpected further developments, it is possible that the ultimate resolution of these matters, or other similar matters, if unfavorable, may be materially adverse to the Company’s business, financial condition, results of operations, or liquidity. While the Company maintains general, product, property, workers’ compensation, automobile, cargo, aviation, crime, fiduciary and directors’ and officers’ liability insurance up to certain limits that cover certain of these claims, this insurance may be insufficient or unavailable to cover such losses. In addition, while the Company believes it is entitled to indemnification from third parties for some of these claims, these rights may also be insufficient or unavailable to cover such losses. Commitments From time to time, the Company enters into long-term inventory purchase commitments with minimum purchase requirements for raw materials and finished goods to ensure the availability of products for production and distribution. Future minimum annual payments for inventory purchase commitments were immaterial as of December 31, 2020. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II DENTSPLY SIRONA INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2020, 2019, and 2018 Additions Description Balance at Beginning of Period Charged (Credited) To Costs And Expenses Charged to Other Accounts Write-offs Net of Recoveries Translation Adjustment Balance at End of Period (in millions) Allowance for doubtful accounts: For the Year Ended December 31, 2018 $ 22 $ 6 $ 1 $ (2) $ (2) $ 25 2019 25 10 1 (6) (1) 29 2020 29 1 (2) (12) 2 18 Deferred tax asset valuation allowance: For the Year Ended December 31, 2018 $ 3,015 $ 108 $ — $ (2,769) $ (66) $ 288 2019 288 8 — (6) (2) 288 2020 288 (5) — (2) 6 287 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 6, 2021 the Company entered into foreign exchange forward contracts with a notional value of SEK 1.3 billion as a result of an increased exposure to intercompany loans denominated in Swedish kronor. The foreign exchange forwards are designated as fair value hedges. On January 21, 2021, the Company paid $95 million, with the potential for additional earn-out provision payments of up to $10 million, to acquire 100% of the outstanding shares of a Datum Dental, Ltd., a privately-owned producer and distributor of specialized regenerative dental material based in Israel. The Company is in the process of determining fair values of assets acquired and liabilities assumed. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ materially from those estimates. Specifically, for the year ended December 31, 2020, some of these estimates and assumptions were based on the potential impacts of the COVID-19 pandemic. The full extent to which the COVID-19 pandemic will directly or indirectly have a negative material impact on the Company's financial condition, liquidity, or results of operations, is highly uncertain and difficult to predict. More specifically, the demand for the Company's products has been, and continues to be, affected by social distancing guidelines, newly implemented dental practice safety protocols which reduce patient traffic, and patient reluctance to seek dental care. At this time, it is uncertain how long these impacts will continue. During the year the Company's business was impacted by COVID-19. The impact began in the early part of the first quarter as the Company began to experience declines in customer demand in Asia and then further in mid-March where it was most pronounced in Europe and where the Company experienced partial or country-wide business lockdowns in various markets, including China, France, and Italy. The United States was most impacted in April and May. Most regions throughout the world continue to experience localized surges of COVID-19 cases which are being responded to by governmental authorities with partial lockdowns. While the duration and severity of this continuing p andemic is uncertain, the Company currently expects that the COVID-19 pandemic may have a negative impact on its operations in 2021. As a result of the economic uncertainties caused by the COVID-19 pandemic, the Company implemented several measures to improve liquidity and operating results, including reduction of employee hours and salaries, furloughs, suspended hiring, travel bans, delaying some of its planned capital expenditures, and deferring other discretionary spending for 2020. Many of these measures have been eased during the second half of the year as demand for the Company's products has improved. The Company continues to monitor the COVID-19 pandemic and may need to reduce operations in the event of a resurgence of COVID-19 or in the event of actions from governmental authorities to combat a resurgence. The Company believes it will be able to generate sufficient liquidity to satisfy its obligations and remain in compliance with the Company's existing debt covenants for the next twelve months. At December 31, 2020, the Company's liquidity includes $438 million of cash and has access to a $700 million 2018 Credit Facility as well as other short-term credit facilities of approximately $400 million. (See Note 13, Financing Arrangements). At December 31, 2020, the Company is in compliance with all of its debt covenants and expects to remain in compliance with all covenants for the next twelve months. However, if recovery from the pandemic takes longer than currently estimated, the Company may not be able to comply with its debt covenants and may have to seek covenant waivers. Inability to obtain debt covenant waivers may lead to default and acceleration of all of its outstanding debt, which could have a material adverse effect on liquidity. |
Principles of Presentation | Basis of Presentation The consolidated financial statements include the results of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. For the year ended December 31, 2020, amounts recorded in the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income reflect certain adjustments pertaining to prior periods, the impact of which are not material to the financial statements for the years presented. These corrections, which primarily include adjustments to accruals recorded through cost of products sold and selling, general, and administrative expenses, resulted in a net $9 million and $7 million decrease to pre-tax income and net income, respectively, in the twelve months ended December 31, 2020. Investments in non-consolidated affiliates, joint ventures and partnerships where the Company maintains significant influence over an entity are accounted for using the equity method. |
Cash and Cash Equivalents | Cash and cash equivalents include deposits with banks as well as highly liquid time deposits with original maturities of ninety days or less. |
Short-term Investments | Short-term investments are highly liquid time deposits with original maturities greater than ninety days and with remaining maturities of one year or less. |
Accounts and Notes Receivable-Trade | The Company establishes an allowance for doubtful accounts based on an estimate of current expected credit losses resulting from the inability of its customers to make required payments. The allowance is determined based on a combination of factors, including the length of time that the receivable is past due, history of write-offs, and the Company's knowledge of circumstances relating to specific customers' ability to meet their financial obligations. Provision for doubtful accounts are included in Selling, General and Administrative expenses in the Consolidated Statements of Operations. For customers on credit terms, the Company performs ongoing credit evaluation of those customers’ financial condition and generally does not require collateral from them. |
Inventories | Inventories are stated at the lower of cost and net realizable value. The cost of inventories is based upon the First In First Out Method ("FIFO") or average cost methods, except for $3 million and $5 million of inventories was determined by the last-in, first-out (“LIFO”) method as of December 31, 2020 and 2019, 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 December 31, 2020 and 2019 by $22 million and $14 million, respectively. The Company establishes reserves for inventory estimated to be excess, obsolete or unmarketable based upon assumptions about future demand, market conditions, and expiration of products. |
Valuation of Goodwill and Indefinite-Lived Intangible Assets | Assessment of the potential impairment of goodwill and indefinite-lived and definite-lived intangible assets is an integral part of the Company’s normal ongoing review of operations. Testing for potential impairment of these assets is significantly dependent on assumptions and reflects management’s best estimates at a particular point in time. The dynamic economic environments in which the Company’s businesses operate and key economic and business assumptions with respect to projected selling prices, increased competition and introductions of new technologies can significantly affect the outcome of impairment tests. Estimates based on these assumptions may differ significantly from actual results. Changes in factors and assumptions used in assessing potential impairments can have a significant impact on the existence and magnitude of impairments, as well as the time at which such impairments are recognized. If there are unfavorable changes in these assumptions, future cash flows, a key variable in assessing the impairment of these assets, may decrease and as a result the Company may be required to recognize impairment charges. Future changes in the environment and the economic outlook for the assets being evaluated could also result in additional impairment charges being recognized. The following information outlines the Company’s significant accounting policies on long-lived assets by type. Goodwill Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired and liabilities assumed in a business combination. Goodwill is not amortized. The Company conducts an impairment test as of April 30 of each year, or more frequently if events or circumstances indicate that the carrying value of goodwill may be impaired. This impairment assessment includes an evaluation of reporting units, which the Company has determined are either an operating segment or one level below its operating segments, as determined in accordance with ASC 350. The Company performs impairment tests by comparing the fair value of each reporting unit to its carrying amount to determine if there is a potential impairment. If the carrying value of a reporting unit with goodwill exceeds its fair value, an impairment charge is recognized for the excess amount. To determine the fair value of the Company’s reporting units, the Company uses a discounted cash flow model as its valuation technique to measure the fair value for its reporting units. The discounted cash flow model uses five- to ten-year forecasted cash flows plus a terminal value based on a multiple of earnings or by capitalizing the last period’s cash flows using a perpetual growth rate. The Company's significant assumptions in the discounted cash flow models include, but are not limited to, the discount rates, revenue growth rates, perpetual revenue growth rates, and operating margin percentages of the reporting unit's business. The Company considers the current market conditions when determining its assumptions. Lastly, the Company reconciles the aggregate fair values of its reporting units to its market capitalization, which include a reasonable control premium based on market conditions. Additional information related to the testing for goodwill impairment including results of the annual test performed at April 30, 2020 is provided in Note 10, Goodwill and Intangible Assets. Indefinite-Lived Intangible Assets Indefinite-lived intangible assets consist of tradenames and trademarks acquired during business combinations, and these are not subject to amortization. Valuations of indefinite life intangibles assets acquired are based on information and assumptions available at the time of their acquisition, using income and market approaches to determine fair value. The Company conducts an impairment test as of April 30 of each year, or more frequently if events or circumstances indicate that the carrying value of indefinite-lived intangible assets may be impaired. Potential impairment is identified by comparing the fair value of an intangible asset to its carrying value. The Company performs impairment tests using an income approach, more specifically a relief from royalty method. In the development of the forecasted cash flows, the Company applies significant judgment to determine key assumptions, including revenue growth rates, perpetual revenue growth rates, royalty rates, and discount rates. If the carrying value exceeds the fair value, an impairment loss in the amount equal to the excess is recognized. Additional information related to the testing for indefinite-lived intangible asset impairment including results of the annual test performed at April 30, 2020 is provided in Note 10, Goodwill and Intangible Assets. Definite-Lived Intangible Assets Definite-lived intangible assets primarily consist of patents, tradenames, trademarks, licensing agreements, technology know-how, and customer relationships. Valuation of definite-lived intangibles assets acquired in business combinations are based on information and assumptions available at the time of acquisition, using income and market model approaches to determine fair value. Identifiable definite-lived intangible assets are amortized on a basis that best reflects how their economic benefits are utilized over the life of the asset or on a straight-line basis if not materially different from actual utilization. The useful life is the period over which the asset is expected to contribute to the future cash flows of the Company. The Company uses the following useful lives for its definite-lived intangible assets: Definite-lived Intangible Asset Type Useful Life Patents Up to date patent expires Tradenames and trademarks Up to 20 years Licensing agreements Up to 20 years Customer relationships Up to 15 years Technology know-how Up to 10 years When the expected useful life of an intangible is not known, the Company will estimate its useful life based on similar asset or asset groups, any legal, regulatory, or contractual provision that limits the useful life, the effect of economic factors, including obsolescence, demand, competition, and the level of maintenance expenditures required to obtain the expected future economic benefit from the asset. |
Property, Plant and Equipment | Property, plant and equipment are stated at cost, net of accumulated depreciation. Assets acquired through acquisitions are recorded at fair value. Except for leasehold improvements, depreciation is computed by the straight-line method over the assets' estimated useful lives: Property, Plant, and Equipment Assets Type Useful Life Buildings 40 years Machinery and Equipment 4 to 15 years Leasehold Improvements Shorter of the estimated useful life or the term of the lease Maintenance and repairs are expensed as incurred; replacements and major improvements are capitalized. If events or circumstances exist which suggest that the carrying amount of the asset group may not be recoverable the asset group is reviewed for impairment whenever impairment is calculated based upon an evaluation of the identifiable undiscounted cash flows as compared to the carrying value of the asset. If impaired, the resulting charge reflects the excess of the asset group’s carrying cost over its fair value. |
Leases | In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) with subsequent amendments (collectively, “ASC 842”). The Company adopted the new leasing standards on January 1, 2019 using the modified retrospective approach transition method. Results for reporting periods beginning after January 1, 2019 are presented under ASC 842, while prior periods are not adjusted and continue to be reported in accordance with historic accounting under ASC 840. The Company elected the package of practical expedients permitted under the transition guidance within the standard, which eliminates the reassessment of past leases, their classification and initial direct costs for existing leases. The Company did not elect to adopt the hindsight practical expedient. The Company recognized material right-of-use assets and liabilities in the Consolidated Balance Sheets for its operating lease commitments with terms greater than 12 months. |
Derivative Financial Instruments | The Company employs derivative financial instruments to hedge certain anticipated transactions, firm commitments, and assets and liabilities denominated in foreign currencies. Additionally, the Company utilizes interest rate swaps to convert floating rate debt to fixed rate. The Company records all derivative instruments at fair value and changes in fair value are recorded each period in the consolidated statements of operations or accumulated other comprehensive income (“AOCI”). The Company classifies derivative assets and liabilities as current when the remaining term of the derivative contract is one year or less. The Company has elected to classify the cash flow from derivative instruments in the same category as the cash flows from the items being hedged. Should the Company enter into a derivative instrument that included an other-than-insignificant financing element then all cash flows will be classified as financing activities in the Consolidated Statements of Cash Flows as required by US GAAP. |
Pension and Other Postemployment Benefits | Some of the employees of the Company and its subsidiaries are covered by government or Company-sponsored defined benefit plans and defined contribution plans. Additionally, certain union and salaried employee groups in the United States are covered by postemployment healthcare plans. Costs for Company-sponsored defined benefit and postemployment benefit plans are based on expected return on plan assets, discount rates, employee compensation increase rates and health care cost trends. Expected return on plan assets, discount rates and health care cost trend assumptions are particularly important when determining the Company’s benefit obligations and net periodic benefit costs associated with postemployment benefits. Changes in these assumptions can impact the Company’s earnings. In determining the cost of postemployment benefits, certain assumptions are established annually to reflect market conditions and plan experience to appropriately reflect the expected costs as actuarially determined. These assumptions include medical inflation trend rates, discount rates, employee turnover and mortality rates. The Company predominantly uses liability durations in establishing its discount rates, which are observed from indices of high-grade corporate bond yields in the respective economic regions of the plans. The expected return on plan assets is the weighted average long-term expected return based upon asset allocations and historic average returns for the markets where the assets are invested, principally in foreign locations. The Company reports the funded status of its defined benefit pension and other postemployment benefit plans on its consolidated balance sheets as a net liability or asset. |
Accruals for Self-Insured Losses | The Company maintains insurance for certain risks, including workers’ compensation, and is self-insured for employee related healthcare benefits. The Company accrues for the expected costs associated with these risks by considering historical claims experience, demographic factors, severity factors and other relevant information. Costs are recognized in the period the claim is incurred, and the financial statement accruals include an estimate of claims incurred but not yet reported. The Company has stop-loss coverage to limit its exposure to any significant exposure on a per claim basis. |
Litigation | The Company and its subsidiaries, from time to time, are parties to lawsuits arising from operations. The Company records liabilities when a loss is probable and can be reasonably estimated. If these estimates are in the form of ranges, the Company records the liabilities at the most likely outcome within the range. If no point within the range represents a better estimate of the probable loss, then the low point in the range is accrued. The ranges established by management are based on analysis made by internal and external legal counsel who considers information known at the time. If the Company determines that a contingency is reasonably possible, it considers the same information to estimate the possible exposure and discloses any material potential liability. These loss contingencies are monitored regularly for a change in fact or circumstance that would require an accrual adjustment. The Company believes it has estimated liabilities for probable losses appropriately in the past; however, the unpredictability of litigation and court decisions could cause a liability to be incurred in excess of estimates. Legal costs related to these lawsuits are expensed as incurred. |
Foreign Currency Translation | The functional currency for foreign operations, except for those in highly inflationary economies, generally has been determined to be the local currency. Assets and liabilities of foreign subsidiaries are translated at foreign exchange rates on the balance sheet date; revenue and expenses are translated at the average year-to-date foreign exchange rates. The effects of these translation adjustments are reported in Equity within AOCI in the Consolidated Balance Sheets. During the year ended December 31, 2020, the Company had losses of $54 million on its loans designated as hedges of net investments and translation gains of $235 million. During the year ended December 31, 2019, the Company had gains of $4 million on its loans designated as hedges of net investments and translation losses of $87 million. |
Revenue Recognition | Revenue Recognition Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally this occurs with the transfer of risk and/or control of products to its customers. Sales, value-added, and other taxes collected concurrent with revenue-producing activities are excluded from revenue. For most of consumable, technology, and equipment products, the Company transfers control and recognizes revenue when products are shipped from the Company's manufacturing facility or warehouse to the customer (distributors and direct to dentists). For contracts with customers that contain destination shipping terms, revenue is not recognized until risk has transferred and the goods are delivered to the agreed upon destination. The amount of consideration received and revenue recognized varies with changes in marketing incentives (e.g. discounts, rebates, free goods) and returns offered to customers and their customers. When the Company gives customers the right to return eligible products and receive credit, returns are estimated based on an analysis of historical experience. However, returns of products, excluding warranty-related returns, are infrequent and insignificant. The Company adjusts the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Depending on the terms of the arrangement, the Company may also defer the recognition of a portion of revenue on a relative stand-alone selling price basis when performance obligations are not yet satisfied (e.g., free extended maintenance/service contracts, software and licenses, customer loyalty points and coupon programs). The Company uses an observable price, typically average selling price, to determine the stand-alone selling price for separate performance obligations. The Company determines the stand-alone selling price, based on Company geographic sales locations' database of pricing and discounting practices for the specific product or service when sold separately, and utilizes this data to arrive at average selling prices by product. Revenue is then allocated proportionately, based on the determined stand-alone selling price, to the unsatisfied performance obligation, which is deferred until satisfied. At December 31, 2020, the Company had $41 million of deferred revenue recorded in Accrued liabilities in the Consolidated Balance Sheets. The Company expects to recognize significantly all of the deferred revenue within the next twelve months. The prior year amount of $29 million was recognized in the current year. The Company has elected to account for shipping and handling activities as a fulfillment cost within the cost of products sold, and records shipping and handling costs collected from customers in net sales. The Company has adopted two practical expedients: the “right to invoice” practical expedient, which allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date; and relief from considering the existence of a significant financing component when the payment for the good or service is expected to be one year or less. The Company offers discounts to its customers and distributors if certain conditions are met. Discounts are primarily based on the volume of products purchased or targeted to be purchased by the customer or distributor. Discounts are deducted from revenue at the time of sale or when the discount is offered, whichever is later. The Company estimates volume discounts based on the individual customer’s or distributor's historical and estimated future product purchases. Certain of the Company’s customers are offered cash rebates based on targeted sales increases. The Company estimates rebates based on the forecasted performance of a customer and their expected level of achievement within the rebate programs. In accounting for these rebate programs, the Company records an accrual and reduces net sales ratably as sales occur over the rebate period. The Company updates the accruals for these rebate programs as actual results and updated forecasts impact the estimated achievement for customers within the rebate programs. A portion of the Company’s net sales is comprised of sales of precious metals generated through its precious metal dental alloy product offerings. As the precious metal content of the Company’s sales is largely a pass-through to customers, the Company uses its cost of precious metal purchased as a proxy for the precious metal content of sales, as the precious metal content of sales is not separately tracked and invoiced to customers. The Company believes that it is reasonable to use the cost of precious metal content purchased in this manner since precious metal alloy sale prices are typically adjusted when the prices of underlying precious metals change. |
Cost of Products Sold | Cost of products sold represents costs directly related to the manufacture and distribution of the Company’s products. Primary costs include raw materials, packaging, direct labor, overhead, shipping and handling, warehousing and the depreciation of manufacturing, warehousing and distribution facilities. Overhead and related expenses include salaries, wages, employee benefits, utilities, lease costs, maintenance and property taxes. |
Warranties | The Company provides warranties on certain equipment products. Estimated warranty costs are accrued when sales are made to customers. Estimates for warranty costs are based primarily on historical warranty claim experience. Warranty costs are included in Cost of products sold in the Consolidated Statements of Operations. |
Selling, General and Administrative Expenses | Selling, general and administrative expenses represent indirect costs associated with generating revenues and in managing the business of the Company. Such costs include advertising and other marketing expenses, salaries, employee benefits, incentive compensation, research and development, travel, office expenses, lease costs, amortization of capitalized software and depreciation of administrative facilities. Advertising cost are expensed as incurred. |
Research and Development Costs | Research and development (“R&D”) costs relate primarily to salaries and direct overhead expenses associated with R&D activities. In addition, the Company contracts with outside vendors to conduct R&D activities. All such R&D costs are charged to expense when incurred. The Company capitalizes the costs of equipment that have general R&D uses and expenses such equipment that is solely for specific R&D projects. The depreciation expense related to this capitalized equipment is included in the Company’s R&D costs. Software development costs related to software to be sold, leased, or otherwise marketed incurred prior to the attainment of technological feasibility are considered R&D and are expensed as incurred. Once technological feasibility is established, software development costs are capitalized until the product is available for general release to customers. Amortization of these costs are included in Cost of products sold over the estimated life of the products. R&D costs were $115 million, $131 million and $161 million for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in Selling, general and administrative expenses in the Consolidated Statements of Operations. |
Stock Compensation | Stock-based compensation is measured at the grant date, fair value, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity awards). The compensation cost is only recognized for the portion of the awards that are expected to vest. Stock options granted become exercisable as determined by the grant agreement and expire ten years after the date of grant under these plans. Restricted Stock Units ("RSU") vest as determined by the grant agreement and are subject to a service condition, which requires grantees to remain employed by the Company during the period following the date of grant. Under the terms of the RSUs, the vesting period is referred to as the restricted period. In addition to the service condition, certain granted RSUs are subject to performance requirements that can vary between the first year and up to the final year of the RSU award. If targeted performance is not met the RSU granted is adjusted to reflect the achievement level. Upon the expiration of the applicable restricted period and the satisfaction of all conditions imposed, the restrictions on RSUs will lapse, and shares of common stock will be issued as payment for each vested RSU. Upon death, disability or qualified retirement all awards become immediately exercisable for up to one year. Awards are expensed as compensation over their respective vesting periods or to the eligible retirement date if shorter. The Company records forfeitures on stock-based compensation as the participant terminates rather than estimating forfeitures. |
Income Taxes | The Company’s tax expense includes U.S. and international income taxes plus the provision for U.S. taxes on undistributed earnings of international subsidiaries not deemed to be permanently invested. Tax credits and other incentives reduce tax expense in the year the credits are claimed. Certain items of income and expense are not reported in tax returns and financial statements in the same year. The tax effect of such temporary differences is reported as deferred income taxes. Deferred tax assets are recognized if it is more likely than not that the assets will be realized in future years. The Company establishes a valuation allowance for deferred tax assets for which realization is not likely. The Company applies 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 Company recognizes in the consolidated financial statements the impact of a tax position if that position is more likely than not of being sustained upon examination by the taxing authorities based on the technical merits of the position. The Company’s tax positions are subject to ongoing examinations by the tax authorities. The Company operates within multiple taxing jurisdictions throughout the world and in the normal course of business is examined by taxing authorities in those jurisdictions. Adjustments to the uncertain tax positions are recorded when taxing authority examinations are completed, statutes of limitation are closed, changes in tax laws occur or as new information comes to light with regard to the technical merits of the tax position. |
Earnings Per Share | Basic earnings per share are calculated by dividing net earnings attributable to Company’s shareholders by the weighted average number of shares outstanding for the period. Diluted earnings per share is calculated by dividing net earnings attributable to Company’s shareholders by the weighted average number of shares outstanding for the period, adjusted for the effect of an assumed exercise of all dilutive options outstanding at the end of the period, unless the impact of including these options is anti-dilutive. |
Business Acquisitions | The Company acquires businesses as well as partial interests in businesses. Acquired businesses are accounted for using the acquisition method of accounting which requires the Company to record assets acquired and liabilities assumed at their respective fair values with the excess of the purchase price over estimated fair values recorded as goodwill. The assumptions made in determining the fair value of acquired assets and assumed liabilities as well as asset lives can materially impact the results of operations. The Company obtains information during due diligence and through other sources to establish respective fair values. Examples of factors and information that the Company uses to determine the fair values include: tangible and intangible asset valuations and appraisals, and evaluations of existing contingencies, liabilities, and product line information. If the initial valuation for an acquisition is incomplete by the end of the reporting period in which the acquisition occurred, the Company will record a provisional estimate in the financial statements. The provisional estimate will be finalized as soon as information becomes available, but will only occur up to one year from the acquisition date. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, we could record impairment charges. |
Noncontrolling Interests | The Company reports noncontrolling interest (“NCI”) in a subsidiary as a separate component of Equity in the Consolidated Balance Sheets. Additionally, the Company reports the portion of net income (loss) and comprehensive income (loss) attributed to the Company and NCI separately in the Consolidated Statements of Operations. |
Segment Reporting | The Company has numerous operating businesses covering a wide range of products and geographic regions, primarily serving the professional dental market and to a lesser extent the consumable medical device market. The Company has two reportable segments and a description of the activities within these segments is included in Note 5, Segment and Geographic Information. |
Fair Value Measurement | Recurring Basis The Company records certain financial assets and liabilities at fair value in accordance with the accounting guidance, which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date in current markets. The accounting guidance establishes a hierarchical disclosure framework associated with the level of pricing observability utilized in measuring financial instruments at fair value. The three broad levels defined by the fair value hierarchy are as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. These financial instruments include derivative instruments whose fair value have been derived using a model where inputs to the model are directly observable in the market or can be derived principally from, or corroborated by observable market data. Level 3 - Instruments that have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The degree of judgment utilized in measuring the fair value of certain financial assets and liabilities generally correlates to the level of pricing observability. Pricing observability is impacted by a number of factors, including the type of financial instrument. Financial assets and liabilities with readily available active quoted prices or for which fair 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 assets and liabilities 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 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. Additionally, the Company considers its credit risks and its counterparties’ credit risks when determining the fair values of its financial assets and liabilities. The Company records its derivatives and contingent considerations on a recurring fair value basis. The Company believes the carrying amounts of cash and cash equivalents, accounts receivable (net of allowance for doubtful accounts), prepaid expenses and other current assets, accounts payable, accrued liabilities, income taxes payable and notes payable approximate fair value due to the short-term nature of these instruments. The Company has presented the required disclosures in Note 19, Fair Value Measurement. Non-Recurring Basis |
Recently Adopted Accounting Pronouncements and Accounting Standards Not Yet Adopted | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This newly issued accounting standard changes the recognition and measurement of credit losses, including trade accounts receivable. Under current accounting standards, a loss is recognized when loss becomes probable of occurring. The new standard broadens the information that an entity must consider when developing expected credit loss estimates. The amendments in this update are effective for fiscal years and interim periods ending after December 15, 2019. Early adoption is permitted. The amendments in this update should be applied on a prospective basis for all periods presented with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company adopted this accounting standard on January 1, 2020. The adoption of this standard did not materially impact the Company's consolidated financial statements or related disclosures. In August 2018, the FASB issued ASU No. 2018-14 "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." This newly issued accounting standard changes disclosure requirements for defined benefit plans, including removal and modification of existing disclosures. The amendments in this update are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The amendments in this update should be applied on a retrospective basis for all periods presented. The Company adopted this accounting standard on January 1, 2020. The adoption of this standard did not materially impact the Company’s disclosures. In December 2019, the FASB issued ASU No. 2019-12 "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This newly issued accounting standard simplifies key provisions for accounting for income taxes, as part of the FASB's initiative to reduce complexity in accounting standards. The amendments eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The amendments also clarify and simplify other aspects of the accounting for income taxes. The amendments in this update are effective for interim and fiscal period beginning after December 31, 2020. The Company adopted this accounting standard on January 1, 2020. The adoption of this standard did not materially impact the Company’s consolidated financial statements or related disclosures. Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04 "Reference Rate Reform (Topic 828): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." Specifically, there is risk of cessation of the London Interbank Offer Rate ("LIBOR"). The Company has certain variable interest rate debt that uses LIBOR as a reference rate. The guidance provided by this accounting standard may be used for contracts entered into on or before December 31, 2022 on a prospective basis. The Company is currently assessing the impact that this standard will have on its consolidated financial statements and related disclosures. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Intangible Assets | The Company uses the following useful lives for its definite-lived intangible assets: Definite-lived Intangible Asset Type Useful Life Patents Up to date patent expires Tradenames and trademarks Up to 20 years Licensing agreements Up to 20 years Customer relationships Up to 15 years Technology know-how Up to 10 years |
Property, Plant and Equipment | Except for leasehold improvements, depreciation is computed by the straight-line method over the assets' estimated useful lives: Property, Plant, and Equipment Assets Type Useful Life Buildings 40 years Machinery and Equipment 4 to 15 years Leasehold Improvements Shorter of the estimated useful life or the term of the lease Property, plant and equipment, net, were as follows: Year Ended December 31, (in millions) 2020 2019 Assets, at cost: Land $ 54 $ 52 Buildings and improvements 595 554 Machinery and equipment 1,414 1,327 Construction in progress 120 102 $ 2,183 $ 2,035 Less: Accumulated depreciation 1,392 1,233 Property, plant and equipment, net $ 791 $ 802 |
Schedule of Warranty Expense and Accrual | The Company’s warranty expense and warranty accrual were as follows: December 31, (in millions) 2020 2019 2018 Warranty Expense $ 29 $ 36 $ 24 Warranty Accrual 18 18 13 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The computation of basic and diluted earnings (loss) per common share for the years ended December 31 were as follows: Basic (Loss) Earnings Per Common Share (in millions, except per share amounts) 2020 2019 2018 Net (loss) income attributable to Dentsply Sirona $ (83) $ 263 $ (1,011) Weighted average common shares outstanding 219.2 223.1 224.3 (Loss) earnings per common share - basic $ (0.38) $ 1.18 $ (4.51) Diluted (Loss) Earnings Per Common Share (in millions, except per share amounts) 2020 2019 2018 Net (loss) income attributable to Dentsply Sirona $ (83) $ 263 $ (1,011) Weighted average common shares outstanding 219.2 223.1 224.3 Incremental weighted average shares from assumed exercise of dilutive options from stock-based compensation awards — 1.3 — Total weighted average diluted shares outstanding 219.2 224.4 224.3 (Loss) earnings per common share - diluted $ (0.38) $ 1.17 $ (4.51) |
COMPREHENSIVE (LOSS) INCOME (Ta
COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in AOCI, net of tax, by component for the years ended December 31, 2020 and 2019 were as follows: (in millions) Foreign Currency Translation Gain (Loss) Gain and (Loss) on Cash Flow Hedges Gain and (Loss) on Net Investment and Fair Value Hedges Pension Liability Gain (Loss) Total Balance, net of tax, at December 31, 2019 $ (368) $ (11) $ (101) $ (120) $ (600) Other comprehensive income (loss) before reclassifications and tax impact 151 (17) (23) (26) 85 Tax benefit 30 1 5 7 43 Other comprehensive income (loss), net of tax, before reclassifications $ 181 $ (16) $ (18) $ (19) $ 128 Amounts reclassified from accumulated other comprehensive income, net of tax — 2 — 6 8 Net increase (decrease) in other comprehensive income 181 (14) (18) (13) 136 Balance, net of tax, at December 31, 2020 $ (187) $ (25) $ (119) $ (133) $ (464) (in millions) Foreign Currency Translation Gain (Loss) Gain and (Loss) on Cash Flow Hedges Gain and (Loss) on Net Investment and Fair Value Hedges Pension Liability Gain (Loss) Total Balance, net of tax, at December 31, 2018 $ (284) $ 1 $ (112) $ (84) $ (479) Other comprehensive (loss) income before reclassifications and tax impact (88) (17) 18 (54) (141) Tax benefit (expense) 4 4 (7) 14 15 Other comprehensive (loss) income, net of tax, before reclassifications $ (84) $ (13) $ 11 $ (40) $ (126) Amounts reclassified from accumulated other comprehensive income, net of tax — 1 — 4 5 Net (decrease) increase in other comprehensive income (84) (12) 11 (36) (121) Balance, net of tax, at December 31, 2019 $ (368) $ (11) $ (101) $ (120) $ (600) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassification out of AOCI to the Consolidated Statements of Operations for the years ended December 31, 2020, 2019, and 2018 were as follows: Details about AOCI Components Amounts Reclassified from AOCI Affected Line Item in the Consolidated Statements of Operations Year Ended December 31, (in millions) 2020 2019 2018 Loss on derivative financial instruments: Interest rate swaps $ (4) $ (2) $ (2) Interest expense Foreign exchange forward contracts 2 1 (9) Cost of products sold Net loss before tax $ (2) $ (1) $ (11) Tax impact — — 1 Provision for income taxes Net loss after tax $ (2) $ (1) $ (10) Realized gain on available-for-sale securities: Available -for-sale-securities $ — $ — $ 45 Other expense (income), net Tax impact — — (1) Provision for income taxes Net gain after tax $ — $ — $ 44 Amortization of defined benefit pension and other postemployment benefit items: Amortization of prior service benefits $ 1 $ 1 $ — (a) Amortization of net actuarial losses (9) (6) (6) (a) Net loss before tax $ (8) $ (5) $ (6) Tax impact 2 1 2 Provision for income taxes Net loss after tax $ (6) $ (4) $ (4) Total reclassifications for the period $ (8) $ (5) $ 30 (a) These AOCI components are included in the computation of net periodic benefit cost for the years ended December 31, 2020, 2019, and 2018, respectively. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Intangible Assets Acquired | Intangible assets acquired were as follows: Weighted Average Useful Life (in millions, except for useful life) Amount (in years) Non-compete agreements $ 16 5 Technology know-how 210 10 Tradenames and trademarks 190 20 Total $ 416 Intangible assets acquired were as follows: Weighted Average Useful Life (in millions, except for useful life) Amount (in years) Customer relationships $ 18 15 Developed technology and patents 65 15 Tradenames and trademarks 14 Indefinite Total $ 97 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary fair values of the assets acquired and liabilities assumed in connection with the Byte acquisition for the year ended December 31, 2020 were as follows: (in millions) Cash and cash equivalents $ 13 Current assets 15 Intangible assets 416 Current liabilities (32) Long-term assets (liabilities), net 2 Net assets acquired 414 Goodwill 631 Purchase consideration $ 1,045 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales | The Company’s segment information for the years ended December 31 was as follows: Net Sales Year Ended December 31, (in millions) 2020 2019 2018 Technologies & Equipment $ 1,961 $ 2,283 $ 2,168 Consumables 1,381 1,746 1,818 Total net sales $ 3,342 $ 4,029 $ 3,986 |
Schedule of Depreciation and Amortization | Depreciation and Amortization Year Ended December 31, (in millions) 2020 2019 2018 Technologies & Equipment $ 261 $ 258 $ 238 Consumables 61 54 91 All Other (a) 12 11 2 Total $ 334 $ 323 $ 331 (a) Includes amounts recorded at Corporate headquarters. |
Schedule of Segment Operating Income (Loss) | Segment Adjusted Operating Income Year Ended December 31, (in millions) 2020 2019 2018 Technologies & Equipment (a) $ 387 $ 467 $ 312 Consumables (a) 314 440 462 Segment adjusted operating income $ 701 $ 907 $ 774 Reconciling items (income) expense: All other (a) (b) 281 269 220 Goodwill impairment 157 — 1,086 Restructuring and other costs 77 81 221 Interest expense 48 30 37 Interest income (1) (2) (2) Other expense (income), net 1 (12) (35) Amortization of intangible assets 192 189 198 Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations 6 7 7 (Loss) income before income taxes $ (60) $ 345 $ (958) (a) Certain charges related to discontinuance of product lines which were previously reported in adjusted operating income for the reportable segments, $38 million in 2019 and $36 million in 2018, have been reclassified to the “All other” category to conform to current year presentation and our internal reporting to our Chief Operating Decision Maker package ("CODM"). These amounts are not material to the measure of segment results for the years presented. (b) Includes the results of unassigned Corporate headquarters costs and inter-segment eliminations. |
Schedule of Capital Expenditures | Capital Expenditures Year Ended December 31, (in millions) 2020 2019 2018 Technologies & Equipment $ 50 $ 73 $ 126 Consumables 26 34 43 All Other (a) 11 16 14 Total $ 87 $ 123 $ 183 (a) Includes capital expenditures of Corporate headquarters. |
Schedule of Assets | Assets Year Ended December 31, (in millions) 2020 2019 Technologies & Equipment $ 7,014 $ 5,927 Consumables 2,172 2,443 All Other (a) 156 233 Total $ 9,342 $ 8,603 (a) Includes the results of unassigned Corporate headquarters costs and inter-segment eliminations. |
Schedule of Revenue and Long Lived Assets by Geographic Location | The following table sets forth information about the Company’s operations in different geographic areas for the years ended December 31, 2020, 2019, and 2018. Net sales reported below represent revenues for shipments made by operating businesses located in the country or territory identified, including export sales. Property, plant and equipment, net, represents those long-lived assets held by the operating businesses located in the respective geographic areas. (in millions) United States Germany Sweden Other Foreign Consolidated 2020 Net sales $ 1,109 $ 439 $ 53 $ 1,741 $ 3,342 Property, plant, and equipment, net 145 337 110 199 791 2019 Net sales $ 1,375 $ 478 $ 56 $ 2,120 $ 4,029 Property, plant, and equipment, net 168 327 99 208 802 2018 Net sales $ 1,270 $ 494 $ 55 $ 2,167 $ 3,986 Property, plant, and equipment, net 211 340 99 221 871 |
Schedule of Disaggregation of Revenue | Net sales by product category were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Dental technology and equipment products $ 1,674 $ 2,005 $ 1,897 Dental consumables products 1,337 1,688 1,740 Healthcare consumable products 331 336 349 Total net sales $ 3,342 $ 4,029 $ 3,986 |
OTHER EXPENSE (INCOME) , NET (T
OTHER EXPENSE (INCOME) , NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense (Income) | Other expense (income), net, were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Foreign exchange transaction (gain) loss $ (13) $ (27) $ 6 Other expense (income), net 14 15 (41) Total other expense (income), net $ 1 $ (12) $ (35) |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net of inventory valuation reserves, were as follows: Year Ended December 31, (in millions) 2020 2019 Finished goods $ 264 $ 356 Work-in-process 68 83 Raw materials and supplies 134 123 Inventories, net $ 466 $ 562 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Except for leasehold improvements, depreciation is computed by the straight-line method over the assets' estimated useful lives: Property, Plant, and Equipment Assets Type Useful Life Buildings 40 years Machinery and Equipment 4 to 15 years Leasehold Improvements Shorter of the estimated useful life or the term of the lease Property, plant and equipment, net, were as follows: Year Ended December 31, (in millions) 2020 2019 Assets, at cost: Land $ 54 $ 52 Buildings and improvements 595 554 Machinery and equipment 1,414 1,327 Construction in progress 120 102 $ 2,183 $ 2,035 Less: Accumulated depreciation 1,392 1,233 Property, plant and equipment, net $ 791 $ 802 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities, Leases | The net present value of finance and operating lease right-of-use assets and liabilities were as follows: Year Ended December 31, (in millions, except percentages) Location in the Consolidated Balance Sheets 2020 2019 Assets Finance leases Property, plant, and equipment, net $ 1 $ 1 Operating leases Operating lease right-of-use assets, net 176 159 Total right-of-use assets $ 177 $ 160 Liabilities Current liabilities Operating leases Accrued liabilities $ 48 $ 44 Noncurrent liabilities Finance leases Long-term debt 1 1 Operating leases Operating lease liabilities 130 120 Total lease liabilities $ 179 $ 165 Supplemental information: Weighted-average discount rate Finance leases 3.7 % 3.6 % Operating leases 3.0 % 2.9 % Weighted-average remaining lease term in years Finance leases 6.5 7.0 Operating leases 5.2 5.3 |
Schedule of Lease Costs | The lease cost recognized in the Consolidated Statements of Operations for the year ended December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Operating lease cost $ 57 $ 55 Short-term lease cost 1 1 Variable lease cost 9 10 Total lease cost $ 67 $ 66 The supplemental cash flow information for the year ended December 31, 2020 and 2019 were as follows: (in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 56 $ 53 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 43 $ 35 |
Schedule of Finance Lease Maturity | The contractual maturity dates of the remaining lease liabilities for the year ended December 31, 2020 were as follows: (in millions) Finance Leases Operating Leases Total 2021 $ — $ 52 $ 52 2022 — 41 41 2023 — 31 31 2024 — 22 22 2025 — 14 14 2026 and beyond 1 34 35 Total lease payments $ 1 $ 194 $ 195 Less imputed interest — 16 16 Present value of lease liabilities $ 1 $ 178 $ 179 |
Schedule of Operating Lease Maturity | The contractual maturity dates of the remaining lease liabilities for the year ended December 31, 2020 were as follows: (in millions) Finance Leases Operating Leases Total 2021 $ — $ 52 $ 52 2022 — 41 41 2023 — 31 31 2024 — 22 22 2025 — 14 14 2026 and beyond 1 34 35 Total lease payments $ 1 $ 194 $ 195 Less imputed interest — 16 16 Present value of lease liabilities $ 1 $ 178 $ 179 |
Schedule of Financing Payments Under Topic 840 | |
Schedule of Operating Leases Under Topic 840 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Reconciliation of Changes in the Company's Goodwill | A reconciliation of changes in the Company’s goodwill by reportable segment were as follows (the segment information below reflects the current structure for all periods shown): (in millions) Technologies & Equipment Consumables Total Balance at December 31, 2018 $ 2,545 $ 886 $ 3,431 Acquisition activity 3 — 3 Divestiture of business (4) — (4) Effect of exchange rate changes (28) (5) (33) Balance at December 31, 2019 $ 2,516 $ 881 $ 3,397 Acquisition activity 631 — 631 Impairment (157) — (157) Effect of exchange rate changes 102 13 115 Balance at December 31, 2020 $ 3,092 $ 894 $ 3,986 The gross carrying amount of goodwill and the cumulative goodwill impairment were as follows: Year Ended December 31, 2020 2019 (in millions) Gross Carrying Amount Cumulative Impairment Net Carrying Amount Gross Carrying Amount Cumulative Impairment Net Carrying Amount Technologies & Equipment $ 5,985 $ (2,893) $ 3,092 $ 5,253 $ (2,737) $ 2,516 Consumables 894 — 894 881 — 881 Total effect of cumulative impairment $ 6,879 $ (2,893) $ 3,986 $ 6,134 $ (2,737) $ 3,397 |
Schedule of Identifiable Definite-Lived Intangible Assets | Identifiable definite-lived and indefinite-lived intangible assets at were as follows: Year Ended December 31, 2020 2019 (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 1,681 $ (677) $ 1,004 $ 1,371 $ (518) $ 853 Tradenames and trademarks 273 (70) 203 79 (63) 16 Licensing agreements 37 (30) 7 36 (28) 8 Customer relationships 1,142 (494) 648 1,070 (399) 671 Total definite-lived $ 3,133 $ (1,271) $ 1,862 $ 2,556 $ (1,008) $ 1,548 Indefinite-lived tradenames and trademarks $ 642 $ — $ 642 $ 628 $ — $ 628 Total identifiable intangible assets $ 3,775 $ (1,271) $ 2,504 $ 3,184 $ (1,008) $ 2,176 |
Schedule of Indefinite-Lived Intangible Assets | Identifiable definite-lived and indefinite-lived intangible assets at were as follows: Year Ended December 31, 2020 2019 (in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents $ 1,681 $ (677) $ 1,004 $ 1,371 $ (518) $ 853 Tradenames and trademarks 273 (70) 203 79 (63) 16 Licensing agreements 37 (30) 7 36 (28) 8 Customer relationships 1,142 (494) 648 1,070 (399) 671 Total definite-lived $ 3,133 $ (1,271) $ 1,862 $ 2,556 $ (1,008) $ 1,548 Indefinite-lived tradenames and trademarks $ 642 $ — $ 642 $ 628 $ — $ 628 Total identifiable intangible assets $ 3,775 $ (1,271) $ 2,504 $ 3,184 $ (1,008) $ 2,176 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | Prepaid expenses and other current assets were as follows: Year Ended December 31, (in millions) 2020 2019 Prepaid expenses $ 79 $ 81 Accrued value-added tax on purchases 36 46 Deposits 33 40 Other current assets 66 84 Prepaid expenses and other current assets $ 214 $ 251 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities were as follows: Year Ended December 31, (in millions) 2020 2019 Payroll, commissions, bonuses, other cash compensation and employee benefits $ 142 $ 179 Sales and marketing programs 21 17 Reserve for dealer rebates 134 125 Restructuring costs 31 28 Accrued vacation and holidays 41 37 Professional and legal costs 33 36 Current portion of derivatives 32 3 General insurance 12 12 Warranty liabilities 18 18 Third party royalties 11 11 Deferred income 41 29 Accrued interest 13 11 Accrued property taxes 13 11 Current operating lease liabilities 48 44 Other 63 68 Accrued liabilities $ 653 $ 629 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | Short-term debt was as follows: Year Ended December 31, 2020 2019 Principal Interest Principal Interest (in millions except percentages) Balance Rate Balance Rate Other short-term loans $ 3 1.9 % $ 2 3.7 % Add: Current portion of long-term debt 296 — Total short-term debt $ 299 $ 2 Maximum month-end short-term debt outstanding during the year $ 299 $ 148 Average amount of short-term debt outstanding during the year 95 50 Weighted-average interest rate on short-term debt at year-end 1.9 % 3.7 % |
Schedule of Long-term Debt | Long-term debt was as follows: Year Ended December 31, 2020 2019 Principal Interest Principal Interest (in millions except percentages) Balance Rate Balance Rate Fixed rate senior notes $450 million due August 2021 $ 296 4.1 % $ 296 4.1 % Private placement notes 70 million euros due October 2024 85 1.0 % 78 1.0 % Private placement notes 25 million Swiss franc due December 2025 28 0.9 % 26 0.9 % Private placement notes 97 million euros due December 2025 118 2.1 % 109 2.1 % Private placement notes 26 million euros due February 2026 32 2.1 % 29 2.1 % Private placement notes 58 million Swiss franc due August 2026 65 1.0 % 60 1.0 % Private placement notes 106 million euros due August 2026 129 2.3 % 119 2.3 % Private placement notes 70 million euros due October 2027 85 1.3 % 78 1.3 % Private placement notes 8 million Swiss franc due December 2027 8 1.0 % 8 1.0 % Private placement notes 15 million euros due December 2027 18 2.2 % 17 2.2 % Private placement notes 140 million Swiss franc due August 2028 158 1.2 % 145 1.2 % Private placement notes 70 million euros due October 2029 85 1.5 % 78 1.5 % Fixed rate senior notes 750 million due June 2030 750 3.3 % — — % Private placement notes 70 million euros due October 2030 85 1.6 % 78 1.6 % Private placement notes 45 million euros due February 2031 55 2.5 % 51 2.5 % Private placement notes 65 million Swiss franc due August 2031 73 1.3 % 67 1.3 % Private placement notes 12.6 billion Japanese yen due September 2031 122 1.0 % 116 1.0 % Private placement notes 70 million euros due October 2031 85 1.7 % 79 1.7 % Other borrowings, various currencies and rates 7 4 $ 2,284 $ 1,438 Less: Current portion (included in “Notes payable and current portion of long-term debt” in the Consolidated Balance Sheets) 296 — Less: Long-term portion of deferred financing costs 10 5 Long-term portion $ 1,978 $ 1,433 |
Schedule of Maturities of Long-term Debt | The table below reflects the contractual maturity dates of the various long-term borrowings as follows: (in millions) December 31, 2020 2021 $ 296 2022 3 2023 — 2024 86 2025 147 2025 and beyond 1,752 $ 2,284 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Total Outstanding Shares | Total outstanding shares of common stock and treasury stock were as follows: (in millions) Shares of Common Stock Shares of Treasury Stock Outstanding Shares Balance at December 31, 2017 264.5 (37.7) 226.8 Shares of treasury stock issued — 1.6 1.6 Repurchase of common stock at an average cost of $45.92 — (5.4) (5.4) Balance at December 31, 2018 264.5 (41.5) 223.0 Shares of treasury stock issued — 3.1 3.1 Repurchase of common stock at an average cost of $54.18 — (4.8) (4.8) Balance at December 31, 2019 264.5 (43.2) 221.3 Shares of treasury stock issued — 1.1 1.1 Repurchase of common stock at an average cost of $38.25 — (3.7) (3.7) Balance at December 31, 2020 264.5 (45.8) 218.7 |
Schedule of Total Stock Based Compensation Expense and the Tax Related Benefit | Total stock based compensation expense and the tax related benefit were as follows: Year End December 31, (in millions) 2020 2019 2018 Stock option expense $ 7 $ 7 $ 7 RSU expense 39 58 13 Total stock based compensation expense $ 46 $ 65 $ 20 Related deferred income tax benefit $ 5 $ 8 $ 2 |
Schedule of Assumptions Used to Determine Compensation Cost for the Company's Non-qualified Stock Options Issued | The average assumptions used to determine compensation cost for the Company’s NQSOs issued were as follows: Year End December 31, 2020 2019 2018 Weighted average fair value per share $ 10.03 $ 12.20 $ 12.38 Expected dividend yield 0.84 % 0.71 % 0.64 % Risk-free interest rate 0.77 % 2.36 % 2.72 % Expected volatility 24.0 % 22.6 % 19.7 % Expected life (years) 5.49 6.00 6.07 |
Schedule of Non-qualified Stock Option Transactions | The NQSO transactions for the year ended December 31, 2020 were as follows: Outstanding Exercisable (in millions, except per share amounts) Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value December 31, 2019 3.8 $ 50.02 $ 28 2.7 $ 48.85 $ 23 Granted 0.7 47.84 Exercised (0.3) 39.59 Cancelled (0.2) 56.21 December 31, 2020 4.0 $ 50.01 $ 17 2.7 $ 50.28 $ 12 |
Schedule of Information about Non-qualified Stock Options Outstanding | Information about NQSOs outstanding for the year ended December 31, 2020 were as follows: Outstanding Exercisable Number Outstanding at December 31, 2020 Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable at December 31, 2020 Weighted Average Exercise Price Range of Exercise Prices (in millions, except per share amounts and life) 30.01 - 40.00 0.4 1.5 $ 37.54 0.4 $ 37.55 40.01 - 50.00 2.0 6.3 46.83 0.9 45.22 50.01 - 60.00 1.2 4.8 54.82 1.0 54.69 60.01 - 70.00 0.4 5.2 62.26 0.4 62.25 4.0 5.3 $ 50.01 2.7 $ 50.28 |
Schedule of the Unvested RSU Transactions | The unvested RSU transactions for the year ended December 31, 2020 were as follows: Unvested Restricted Stock Units Shares Weighted Average Grant Date Fair Value (in millions, except per share amounts) Unvested at December 31, 2019 4.5 $ 47.79 Granted 1.0 49.40 Vested (0.9) 49.74 Forfeited (0.4) 46.16 Unvested at December 31, 2020 4.2 $ 47.29 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes from Operations | The components of income (loss) before income taxes were as follows: Year Ended December 31, (in millions) 2020 2019 2018 United States $ (109) $ (110) $ (279) Foreign 49 455 (679) $ (60) $ 345 $ (958) |
Schedule of Components of the Provision for Income Taxes from Operations | The components of the provision (benefit) for income taxes from operations were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Current: U.S. federal $ (5) $ (11) $ 10 U.S. state 1 1 3 Foreign 91 129 102 Total $ 87 $ 119 $ 115 Deferred: U.S. federal $ — $ (2) $ 46 U.S. state (2) 2 (3) Foreign (62) (37) (105) Total $ (64) $ (37) $ (62) $ 23 $ 82 $ 53 |
Schedule of Reconciliation of the U.S. Federal Statutory Tax Rate to the Effective Rate | The reconciliation of the U.S. federal statutory tax rate to the effective rate were as follows: Year Ended December 31, 2020 2019 2018 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State income taxes, net of federal benefit 2.3 0.7 (0.1) Federal benefit of R&D and foreign tax credits 15.8 (2.0) 1.0 US other permanent differences (5.6) 0.8 (0.1) Tax effect of international operations 4.7 0.4 1.4 Global Intangible Low Taxed Income (GILTI) (10.9) 3.7 (1.1) Foreign Derived Intangible Income (FDII) 9.9 (0.1) — Net effect of tax audit activity (6.9) 0.4 (1.0) Tax effect of enacted statutory rate changes on Non-U.S. jurisdictions (0.2) 0.1 0.3 Federal tax on unremitted earnings of certain foreign subsidiaries (4.6) 0.1 (0.1) Valuation allowance adjustments (12.9) (1.3) (5.7) U.S. tax reform - net impacts — — 0.4 Tax effect of impairment of goodwill and intangibles (51.0) (0.2) (22.2) Other 0.1 0.2 0.7 Effective income tax rate on operations (38.3 %) 23.8 % (5.5 %) |
Schedule of Tax Effect of Significant Temporary Differences Giving Rise to Deferred Tax Assets and Liabilities | The tax effect of significant temporary differences giving rise to deferred tax assets and liabilities were as follows: Year Ended December 31, 2020 2019 (in millions) Deferred Tax Asset Deferred Tax Liability Deferred Tax Asset Deferred Tax Liability Commission and bonus accrual $ 8 $ — $ 11 $ — Employee benefit accruals 58 — 56 — Inventory 25 — 15 — Identifiable intangible assets — 613 — 631 Insurance premium accruals 3 — 3 — Miscellaneous accruals 11 — 21 — Other 11 — — 2 Unrealized losses included in AOCI 98 — 46 — Property, plant and equipment — 50 — 50 Lease right-of-use asset — 42 — 39 Lease right-of-use liability 42 — 40 — Product warranty accruals 1 — 1 — Foreign tax credit and R&D carryforward 60 — 73 — Restructuring and other cost accruals 9 — 4 — Sales and marketing accrual 7 — 6 — Taxes on unremitted earnings of foreign subsidiaries — 6 — 3 Tax loss carryforwards and other tax attributes 280 — 269 — Subtotal $ 613 $ 711 $ 545 $ 725 Valuation allowances (287) — (288) — Total $ 326 $ 711 $ 257 $ 725 |
Schedule of Deferred Tax Assets and Liabilities Included in the Consolidated Balance Sheet | Deferred tax assets and liabilities are included in the following Consolidated Balance Sheets line items at December 31 were as follows: (in millions) 2020 2019 Assets Other noncurrent assets, net $ 8 $ 12 Liabilities Deferred income taxes $ 393 $ 480 |
Schedule of Unrecognized Tax Benefits | The activity recorded for unrecognized tax benefits were as follows: (in millions) 2020 2019 2018 Unrecognized tax benefits at beginning of period $ 24 $ 28 $ 21 Gross change for prior-period positions 1 — 8 Gross change for current year positions 1 — — Decrease due to settlements and payments — (4) — Decrease due to statute expirations — — — Increase due to effect of foreign currency translation 1 — — Decrease due to effect from foreign currency translation — — (1) Unrecognized tax benefits at end of period $ 27 $ 24 $ 28 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Reconciliations of Changes in the Defined Benefit and Postretirement Healthcare Plans' Benefit Obligations, Fair Value of Assets and Statement of Funded Status | Reconciliation of changes in the defined benefit obligations, fair value of assets and statement of funded status were as follows: Year Ended December 31, (in millions) 2020 2019 Change in Benefit Obligation Benefit obligation at beginning of year $ 578 $ 512 Service cost 16 14 Interest cost 5 8 Participant contributions 4 4 Actuarial losses (gains) 31 79 Effect of exchange rate changes 59 (7) Plan curtailments and settlements (1) (23) Benefits paid (17) (9) Benefit obligation at end of year $ 675 $ 578 Change in Plan Assets Fair value of plan assets at beginning of year $ 185 $ 173 Actual return on assets 9 24 Plan settlements — (23) Effect of exchange rate changes 17 2 Employer contributions 15 14 Participant contributions 4 4 Benefits paid (17) (9) Fair value of plan assets at end of year $ 213 $ 185 Funded status at end of year $ (462) $ (393) |
Schedule of Amounts Recognized in the Accompanying Consolidated Balance Sheets, Net of Tax Effects | The amounts recognized in the accompanying Consolidated Balance Sheets, net of tax effects, were as follows: Location In The Year Ended December 31, (in millions) Consolidated Balance Sheets 2020 2019 Deferred tax asset Other noncurrent assets, net $ 49 $ 40 Total assets $ 49 $ 40 Current liabilities Accrued liabilities (10) (9) Other noncurrent liabilities Other noncurrent liabilities (452) (384) Deferred tax liability Deferred income taxes (1) (1) Total liabilities $ (463) $ (394) Accumulated other comprehensive income Accumulated other comprehensive loss 139 113 Net amount recognized $ (275) $ (241) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income | Amounts recognized in AOCI were as follows: Year Ended December 31, (in millions) 2020 2019 Net actuarial loss $ 191 $ 156 Net prior service cost (4) (4) Before tax AOCI $ 187 $ 152 Less: Deferred taxes 48 39 Net of tax AOCI $ 139 $ 113 |
Schedule of Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | Information for pension plans with a projected or accumulated benefit obligation in excess of plan assets were as follows: Year Ended December 31, (in millions) 2020 2019 Projected benefit obligation $ 484 $ 398 Accumulated benefit obligation 455 371 Fair value of plan assets 26 8 |
Schedule of Components of Net Periodic Benefit Cost | Components of net periodic benefit cost were as follows: Year Ended December 31, Location in Consolidated (in millions) 2020 2019 2018 Statements of Operations Service cost $ 6 $ 6 $ 6 Cost of products sold Service cost 10 8 10 Selling, general and administrative expenses Interest cost 5 8 7 Other expense (income), net Expected return on plan assets (4) (5) (5) Other expense (income), net Amortization of prior service credit (1) (1) — Other expense (income), net Amortization of net actuarial loss 9 6 6 Other expense (income), net Curtailment and settlement (gains) loss — 6 (1) Other expense (income), net Net periodic benefit cost $ 25 $ 28 $ 23 |
Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in AOCI | Other changes in plan assets and benefit obligations recognized in AOCI were as follows: Year Ended December 31, (in millions) 2020 2019 2018 Net actuarial loss (gain) $ 43 $ 53 $ (6) Net prior service cost (credit) — — (3) Amortization (9) (5) (6) Total recognized in AOCI $ 34 $ 48 $ (15) Total recognized in net periodic benefit cost and AOCI $ 59 $ 76 $ 8 |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations, Principally in Foreign Locations | The weighted average assumptions used to determine benefit obligations for the Company’s plans, principally in foreign locations were as follows: Year Ended December 31, 2020 2019 2018 Interest crediting rate 1.3 % 1.3 % 1.5 % Discount rate 0.6 % 1.0 % 1.8 % Rate of compensation increase 2.4 % 2.5 % 2.5 % |
Schedule of Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | The weighted average assumptions used to determine net periodic benefit cost for the Company’s plans, principally in foreign locations were as follows: Year Ended December 31, 2020 2019 2018 Interest crediting rate 1.3 % 1.3 % 1.5 % Discount rate 1.0 % 1.8 % 1.6 % Expected return on plan assets 2.3 % 2.9 % 2.9 % Rate of compensation increase 2.5 % 2.5 % 2.5 % Measurement date 12/31/2020 12/31/2019 12/31/2018 |
Schedule of Fair Value Measurements of Plan Assets | The fair value of the Company’s pension plan assets at December 31, 2020 and 2019 is presented in the table below by asset category. Approximately 75% of the total plan assets are categorized as Level 1, and therefore, the values assigned to these pension assets are based on quoted prices available in active markets. For the other category levels, a description of the valuation is provided in Note 1, Significant Accounting Policies, under the “Fair Value Measurement” heading. December 31, 2020 (in millions) Total Level 1 Level 2 Level 3 Assets Category Cash and cash equivalents $ 16 $ 16 $ — $ — Equity securities: International 58 58 — — Fixed income securities: Fixed rate bonds (a) 65 65 — — Other types of investments: Mutual funds (b) 20 20 — — Common trusts (c) 5 — 5 — Insurance contracts 37 — — 37 Hedge funds 12 — — 12 Total $ 213 $ 159 $ 5 $ 49 December 31, 2019 (in millions) Total Level 1 Level 2 Level 3 Assets Category Cash and cash equivalents $ 13 $ 13 $ — $ — Equity securities: International 56 56 — — Fixed income securities: Fixed rate bonds (a) 55 55 — — Other types of investments: Mutual funds (b) 18 18 — — Common trusts (c) 4 — 4 — Insurance contracts 30 — — 30 Hedge funds 9 — — 9 Total $ 185 $ 142 $ 4 $ 39 (a) This category includes fixed income securities invested primarily in Swiss bonds, foreign bonds denominated in Swiss francs, foreign currency bonds, mortgage notes and pledged letters. (b) This category includes mutual funds balanced between moderate-income generation and moderate capital appreciation with investment allocations of approximately 50% equities and 50% fixed income investments. (c) This category includes common/collective funds with investments in approximately 65% equities and 35% in fixed income investments. |
Schedule of Reconciliation for the Plans Assets Categorized as Level 3 | A reconciliation from December 31, 2019 to December 31, 2020 for the plan assets categorized as Level 3 were as follows: December 31, 2020 (in millions) Insurance Contracts Hedge Funds Total Balance at December 31, 2019 $ 30 $ 9 $ 39 Actual return on plan assets: Relating to assets still held at the reporting date 3 — 3 Purchases, sales and settlements, net — 2 2 Effect of exchange rate changes 4 1 5 Balance at December 31, 2020 $ 37 $ 12 $ 49 December 31, 2019 (in millions) Insurance Contracts Hedge Funds Total Balance at December 31, 2018 $ 28 $ 7 $ 35 Actual return on plan assets: Relating to assets still held at the reporting date 4 (1) 3 Purchases, sales and settlements, net (1) 3 2 Effect of exchange rate changes (1) — (1) Balance at December 31, 2019 $ 30 $ 9 $ 39 |
Schedule of Estimated Future Benefit Payments | Estimated Future Benefit Payments Total benefits expected to be paid from the plans in the future were as follows: (in millions) Pension Benefits 2021 $ 22 2022 21 2023 21 2024 21 2025 23 2026-2030 121 |
RESTRUCTURING AND OTHER COSTS (
RESTRUCTURING AND OTHER COSTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The details of total restructuring and other costs for the years ended 2020, 2019 and 2018 were as follows: Affected Line Item in the Consolidated Statements of Operations Year Ended December 31, (in millions) 2020 2019 2018 Cost of products sold $ 44 $ 25 $ 21 Selling, general, and administrative expenses 2 23 15 Restructuring and other costs 77 81 226 Other income and expenses — (1) — Total restructuring and other costs $ 123 $ 128 $ 262 |
Schedule of Restructuring Accruals | The Company's restructuring accruals at December 31, 2020 were as follows: Severance (in millions) 2018 and Prior Plans 2019 Plans 2020 Plans Total Balance at December 31, 2019 $ 7 $ 20 $ — $ 27 Provisions and adjustments 2 2 28 32 Amounts applied (4) (8) (9) (21) Change in estimates — (7) (2) (9) Balance at December 31, 2020 $ 5 $ 7 $ 17 $ 29 Other Restructuring Costs (in millions) 2018 and Prior Plans 2019 Plans 2020 Plans Total Balance at December 31, 2019 $ 3 $ — $ — $ 3 Provisions and adjustments — 1 3 4 Amounts applied — (1) (1) (2) Balance at December 31, 2020 $ 3 $ — $ 2 $ 5 The Company's restructuring accruals at December 31, 2019 were as follows: Severances (in millions) 2017 and Prior Plans 2018 Plans 2019 Plans Total Balance at December 31, 2018 $ 27 $ 16 $ — $ 43 Provisions and adjustments 4 1 31 36 Amounts applied (22) (12) (9) (43) Change in estimates (7) — (2) (9) Balance at December 31, 2019 $ 2 $ 5 $ 20 $ 27 Other Restructuring Costs (in millions) 2017 and Prior Plans 2018 Plans 2019 Plans Total Balance at December 31, 2018 $ 3 $ — $ — $ 3 Provisions and adjustments 2 1 3 6 Amounts applied (2) (1) (3) (6) Balance at December 31, 2019 $ 3 $ — $ — $ 3 |
Schedule of Cumulative Amounts for the Provisions and Adjustments and Amounts Applied for All the Plans by Segment | The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows: (in millions) December 31, 2019 Provisions and Adjustments Amounts Applied Change in Estimates December 31, 2020 Technologies & Equipment $ 19 $ 16 $ (12) $ (7) $ 16 Consumables 11 16 (8) (2) 17 All Other — 4 (3) — 1 Total $ 30 $ 36 $ (23) $ (9) $ 34 The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows: (in millions) December 31, 2018 Provisions and Adjustments Amounts Applied Change in Estimates December 31, 2019 Technologies & Equipment (a) $ 33 $ 24 $ (33) $ (5) $ 19 Consumables (a) 13 17 (15) (4) 11 All Other — 1 (1) — — Total $ 46 $ 42 $ (49) $ (9) $ 30 |
FINANCIAL INSTRUMENTS AND DER_2
FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following summarizes the notional amounts of cash flow hedges, hedges of net investments, fair value hedges, and derivative instruments not designated as hedges for accounting purposes, by derivative instrument type at December 31, 2020 and the notional amounts expected to mature during the next 12 months: Aggregate Notional Amount Aggregate Notional Amount Maturing within 12 Months (in millions) Cash Flow Hedges Foreign exchange forward contracts $ 369 $ 281 Total derivative instruments designated as cash flow hedges $ 369 $ 281 Hedges of Net Investments Cross currency basis swaps $ 322 322 Total derivative instruments designated as hedges of net investments $ 322 $ 322 Fair Value Hedges Foreign exchange forward contracts $ 63 $ 44 Total derivative instruments designated as fair value hedges $ 63 $ 44 Derivative Instruments not Designated as Hedges Foreign exchange forward contracts $ 276 $ 276 Total derivative instruments not designated as hedges $ 276 $ 276 |
Schedule of Derivative Instruments | The amount of gains and losses recorded in AOCI in the Consolidated Balance Sheets, Cost of products sold, Interest expense, and Other expense (income), net in the Company’s Consolidated Statements of Operations related to all derivative instruments were as follows: Year Ended December 31, 2020 (in millions) Gain (Loss) in AOCI Consolidated Statements of Operations Location Effective Portion Reclassified from AOCI into Income (Expense) Ineffective Portion Recognized in Income (Expense) Recognized in Income (Expense) Cash Flow Hedges Foreign exchange forward contracts $ (2) Cost of products sold $ 2 $ 4 $ — Interest rate swaps (16) Interest expense (4) — — Total for cash flow hedging $ (18) $ (2) $ 4 $ — Hedges of Net Investments Cross currency basis swaps $ (26) Interest expense $ — $ — $ 9 Foreign exchange forward contracts 6 Other expense (income), net — 6 — Total for net investment hedging $ (20) $ — $ 6 $ 9 Fair Value Hedges Foreign exchange forward contracts $ (3) Interest expense $ — $ 3 $ — Total for fair value hedging $ (3) $ — $ 3 $ — Year Ended December 31, 2019 (in millions) Gain (Loss) in AOCI Consolidated Statements of Operations Location Effective Portion Reclassified from AOCI into Income (Expense) Ineffective Portion Recognized in Income (Expense) Recognized in Income (Expense) Cash Flow Hedges Foreign exchange forward contracts $ (6) Cost of products sold $ 1 $ 2 $ — Interest rate swaps (11) Interest expense (2) — — Total for cash flow hedging $ (17) $ (1) $ 2 $ — Hedges of Net Investments Cross currency basis swaps $ 9 Interest expense $ — $ — $ 8 Foreign exchange forward contracts 9 Other expense (income), net — 22 — Total for net investment hedging $ 18 $ — $ 22 $ 8 Fair Value Hedges Foreign exchange forward contracts $ 3 Interest expense $ — $ 3 $ — Total for fair value hedging $ 3 $ — $ 3 $ — . Year Ended December 31, 2018 (in millions) Gain (Loss) in AOCI Consolidated Statements of Operations Location Effective Portion Reclassified from AOCI into Income (Expense) Ineffective Portion Recognized in Income (Expense) Recognized in Income (Expense) Cash Flow Hedges Foreign exchange forward contracts $ 5 Cost of products sold $ (9) $ — $ — Interest rate swaps — Interest expense (2) — — Other expense (income), net — 1 — Total for cash flow hedging $ 5 $ (11) $ 1 $ — Hedges of Net Investments Cross currency basis swaps $ 15 Interest expense $ — $ — $ 7 Other expense (income), net (3) — — Foreign exchange forward contracts 21 Other expense (income), net — 16 — Total for net investment hedging $ 36 $ (3) $ 16 $ 7 Consolidated Statements of Operations Location Gain (Loss) Recognized December 31, (in millions) 2020 2019 2018 Derivative Instruments not Designated as Hedges Foreign exchange forward contracts Other expense (income), net $ 7 $ (3) $ (6) Total for instruments not designated as hedges $ 7 $ (3) $ (6) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value and the location of the Company's derivatives in the Consolidated Balance Sheets were as follows: Year Ended December 31, 2020 (in millions) Prepaid Expenses and Other Current Assets Other Noncurrent Assets Accrued Liabilities Other Noncurrent Liabilities Designated as Hedges: Foreign exchange forward contracts $ 5 $ 2 $ 10 $ 3 Cross currency basis swaps — — 20 — Total $ 5 $ 2 $ 30 $ 3 Not Designated as Hedges: Foreign exchange forward contracts $ 3 $ — $ 2 $ — Total $ 3 $ — $ 2 $ — Year Ended December 31, 2019 (in millions) Prepaid Expenses and Other Current Assets Other Noncurrent Assets Accrued Liabilities Other Noncurrent Liabilities Designated as Hedges: Foreign exchange forward contracts $ 27 $ 11 $ 1 $ 2 Interest rate swaps — — — 11 Cross currency basis swaps — 7 — — Total $ 27 $ 18 $ 1 $ 13 Not Designated as Hedges: Foreign exchange forward contracts $ 2 $ — $ 2 $ — Total $ 2 $ — $ 2 $ — |
Offsetting Derivative Assets and Liabilities | Offsetting of financial assets and liabilities under netting arrangements at December 31, 2020 were as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (in millions) Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/Pledged Net Amount Assets Foreign exchange forward contracts $ 9 $ — $ 9 $ (9) $ — $ — Total assets $ 9 $ — $ 9 $ (9) $ — $ — Liabilities Foreign exchange forward contracts $ 15 $ — $ 15 $ — $ — $ 15 Cross currency basis swaps 20 — 20 (7) — 13 Total liabilities $ 35 $ — $ 35 $ (7) $ — $ 28 Offsetting of financial assets and liabilities under netting arrangements at December 31, 2019 were as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (in millions) Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/Pledged Net Amount Assets Foreign exchange forward contracts $ 39 $ — $ 39 $ (8) $ — $ 31 Cross currency basis swaps 7 — 7 (1) — 6 Total assets $ 46 $ — $ 46 $ (9) $ — $ 37 Liabilities Foreign exchange forward contracts $ 3 $ — $ 3 $ (3) $ — $ — Interest rate swaps 11 — 11 (6) — 5 Total liabilities $ 14 $ — $ 14 $ (9) $ — $ 5 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities that are Recorded at Fair Value and Classified Based on the Lowest Level of Input | The Company’s financial assets and liabilities set forth by level within the fair value hierarchy that were accounted for at fair value on a recurring basis were as follows: Year Ended December 31, 2020 (in millions) Total Level 1 Level 2 Level 3 Assets Foreign exchange forward contracts $ 10 $ — $ 10 $ — Total assets $ 10 $ — $ 10 $ — Liabilities Cross currency interest rate swaps $ 20 $ — $ 20 $ — Foreign exchange forward contracts 15 — 15 — Contingent considerations on acquisitions 5 — — 5 Total liabilities $ 40 $ — $ 35 $ 5 Year Ended December 31, 2019 (in millions) Total Level 1 Level 2 Level 3 Assets Cross currency interest rate swaps $ 7 $ — $ 7 $ — Foreign exchange forward contracts 40 — 40 — Total assets $ 47 $ — $ 47 $ — Liabilities Interest rate swaps $ 11 $ — $ 11 $ — Foreign exchange forward contracts 4 — 4 — Contingent considerations on acquisitions 9 — — 9 Total liabilities $ 24 $ — $ 15 $ 9 |
Schedule of Reconciliation of the Company's Assets Measured at Fair Value on a Recurring Basis Using Unobservable Inputs (Level 3) | The following table presents a reconciliation of the Company’s Level 3 holdings measured at fair value on a recurring basis using unobservable inputs: (in millions) Level 3 Balance, December 31, 2018 $ 9 Unrealized gain: Reported in Other expense (income), net 2 Payments (2) Effect of exchange rate changes — Balance, December 31, 2019 $ 9 Unrealized gain: Reported in Other expense (income), net — Payments (4) Effect of exchange rate changes — Balance, December 31, 2020 $ 5 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Description of Business (Details) | 12 Months Ended |
Dec. 31, 2020country | |
Accounting Policies [Abstract] | |
Company years in innovation and service | 134 years |
Number of countries in which entity operates | 120 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) shares in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)segmentshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 438,000,000 | $ 405,000,000 | ||
Decrease to pre-tax income | 60,000,000 | (345,000,000) | $ 958,000,000 | |
Decrease to net income | 83,000,000 | (263,000,000) | 1,011,000,000 | |
Cost of inventories determined by LIFO method | 3,000,000 | 5,000,000 | ||
Cost of inventories determined by LIFO method, amount of increase if FIFO method was used | 22,000,000 | 14,000,000 | ||
Foreign currency translation gain (loss) | 182,000,000 | (83,000,000) | (180,000,000) | |
Stockholders' equity | 4,970,000,000 | 5,095,000,000 | 5,133,000,000 | $ 6,628,000,000 |
Net exchange gains (losses) | (13,000,000) | (27,000,000) | 6,000,000 | |
R&D costs included in selling, general and administrative expenses | $ 115,000,000 | 131,000,000 | 161,000,000 | |
Adjusted operating income margin target, achievement period for vesting | 12 months | |||
Operating income margin and target threshold measurement period | 12 months | |||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | shares | 3 | |||
Goodwill | $ 3,986,000,000 | 3,397,000,000 | 3,431,000,000 | |
Number of reportable segments | segment | 2 | |||
Restatement Adjustment | ||||
Significant Accounting Policies [Line Items] | ||||
Decrease to pre-tax income | $ 9,000,000 | |||
Decrease to net income | 7,000,000 | |||
Straight Smile LLC | ||||
Significant Accounting Policies [Line Items] | ||||
Total acquisition consideration | 1,000,000,000 | |||
Goodwill | 631,000,000 | |||
Intangible assets | 416,000,000 | |||
Various Credit Facilities | Line of Credit | ||||
Significant Accounting Policies [Line Items] | ||||
Credit facilities, maximum borrowing capacity | 400,000,000 | |||
Line of Credit | 2018 Revolving Credit Facility | ||||
Significant Accounting Policies [Line Items] | ||||
Credit facilities, maximum borrowing capacity | $ 700,000,000 | |||
Restricted Stock Units (RSUs) | ||||
Significant Accounting Policies [Line Items] | ||||
Exercisable period following death, disability or qualified retirement | 1 year | |||
Employee Stock Option | ||||
Significant Accounting Policies [Line Items] | ||||
Award expiration period | 10 years | |||
Accrued Liabilities | ||||
Significant Accounting Policies [Line Items] | ||||
Deferred revenue | $ 41,000,000 | 29,000,000 | ||
Gain and (Loss) on Cash Flow Hedges | ||||
Significant Accounting Policies [Line Items] | ||||
Foreign currency translation gain (loss) | 4,000,000 | |||
Gain and (Loss) on Cash Flow Hedges | Hedges of Net Investments | ||||
Significant Accounting Policies [Line Items] | ||||
Foreign currency translation gain (loss) | (54,000,000) | |||
Foreign Currency Translation Gain (Loss) | ||||
Significant Accounting Policies [Line Items] | ||||
Stockholders' equity | (187,000,000) | (368,000,000) | (284,000,000) | |
Foreign currency translation adjustments recorded in AOCI net of tax effects | (87,000,000) | |||
Accumulated foreign currency adjustment, translation gain (loss) | ||||
Significant Accounting Policies [Line Items] | ||||
Stockholders' equity | (25,000,000) | (260,000,000) | ||
Accumulated foreign currency adjustment, translation gain (loss) | Hedges of Net Investments | ||||
Significant Accounting Policies [Line Items] | ||||
Stockholders' equity | $ 235,000,000 | |||
Building | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 40 years | |||
Machinery and equipment | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 4 years | |||
Machinery and equipment | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 15 years | |||
Allowance for doubtful accounts | ||||
Significant Accounting Policies [Line Items] | ||||
Allowance for Sirona opening balance | $ 18,000,000 | 29,000,000 | 25,000,000 | $ 22,000,000 |
Allowance for doubtful accounts receivable, write-offs | 12,000,000 | 6,000,000 | ||
Additions - charged (credited) to costs and expenses | $ 1,000,000 | $ 10,000,000 | $ 6,000,000 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Intangible Assets (Details) - Maximum | 12 Months Ended |
Dec. 31, 2020 | |
Tradenames and trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life (in years) | 20 years |
Licensing agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life (in years) | 20 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life (in years) | 15 years |
Technology know-how | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, useful life (in years) | 10 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Warranty Expense | $ 29 | $ 36 | $ 24 |
Warranty Accrual | $ 18 | $ 18 | $ 13 |
EARNINGS PER COMMON SHARE - COM
EARNINGS PER COMMON SHARE - COMPUTATION OF BASIC AND DILUTED (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Net (loss) income attributable to Dentsply Sirona | $ (83) | $ 263 | $ (1,011) |
Shares | |||
Weighted average common shares outstanding (in shares) | 219.2 | 223.1 | 224.3 |
(Loss) earnings per common share - basic (in dollars per share) | $ (0.38) | $ 1.18 | $ (4.51) |
Incremental weighted average shares from assumed exercise of dilutive options from stock-based compensation awards (in shares) | 0 | 1.3 | 0 |
Diluted (in shares) | 219.2 | 224.4 | 224.3 |
(Loss) earnings per common share | |||
(Loss) earnings per common share - diluted (in dollars per share) | $ (0.38) | $ 1.17 | $ (4.51) |
EARNINGS PER COMMON SHARE - ADD
EARNINGS PER COMMON SHARE - ADDITIONAL INFORMATION (Details) - USD ($) | May 12, 2020 | Mar. 09, 2020 | May 12, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Potentially dilutive securities excluded from computation of earnings, amount (in shares) | 900,000 | 1,600,000 | ||||
Antidilutive common stock options not included in the computation of diluted earnings per common share (in dollars per share) | 3,100,000 | 3,100,000 | 3,500,000 | |||
Accelerated share repurchases, authorized amount | $ 140,000,000 | |||||
Accelerated share repurchases, settlement (payment) or receipt | $ 140,000,000 | |||||
Stock repurchased during period, shares (in shares) | 1,000,000 | 2,700,000 | ||||
Accelerated share repurchases, final price paid per share (usd per share) | $ 42.12 | |||||
Arithmetic Average | ||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||
Accelerated share repurchases, final price paid per share (usd per share) | $ 38.88 |
COMPREHENSIVE (LOSS) INCOME - A
COMPREHENSIVE (LOSS) INCOME - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency tax adjustments | $ 216 | $ 173 | $ 158 | |
Stockholders' equity | 4,970 | 5,095 | $ 5,133 | $ 6,628 |
Accumulated foreign currency adjustment, translation gain (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | (25) | (260) | ||
Accumulated foreign currency adjustment, net investments hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | $ (162) | $ (108) |
COMPREHENSIVE (LOSS) INCOME - C
COMPREHENSIVE (LOSS) INCOME - CHANGES IN AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated other comprehensive income (loss) rollforward [Roll Forward] | |||
Beginning Balance | $ 5,095 | $ 5,133 | $ 6,628 |
Total other comprehensive income (loss) | 137 | (120) | (188) |
Ending Balance | 4,970 | 5,095 | 5,133 |
Total | |||
Accumulated other comprehensive income (loss) rollforward [Roll Forward] | |||
Beginning Balance | (600) | (479) | (291) |
Other comprehensive income (loss) before reclassifications and tax impact | 85 | (141) | |
Tax benefit | 43 | 15 | |
Other comprehensive income (loss), net of tax, before reclassifications | 128 | (126) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 8 | 5 | |
Total other comprehensive income (loss) | 136 | (121) | (188) |
Ending Balance | (464) | (600) | (479) |
Foreign Currency Translation Gain (Loss) | |||
Accumulated other comprehensive income (loss) rollforward [Roll Forward] | |||
Beginning Balance | (368) | (284) | |
Other comprehensive income (loss) before reclassifications and tax impact | 151 | (88) | |
Tax benefit | 30 | 4 | |
Other comprehensive income (loss), net of tax, before reclassifications | 181 | (84) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | |
Total other comprehensive income (loss) | 181 | (84) | |
Ending Balance | (187) | (368) | (284) |
Gain and (Loss) on Cash Flow Hedges | |||
Accumulated other comprehensive income (loss) rollforward [Roll Forward] | |||
Beginning Balance | (11) | 1 | |
Other comprehensive income (loss) before reclassifications and tax impact | (17) | (17) | |
Tax benefit | 1 | 4 | |
Other comprehensive income (loss), net of tax, before reclassifications | (16) | (13) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 2 | 1 | |
Total other comprehensive income (loss) | (14) | (12) | |
Ending Balance | (25) | (11) | 1 |
Gain and (Loss) on Net Investment and Fair Value Hedges | |||
Accumulated other comprehensive income (loss) rollforward [Roll Forward] | |||
Beginning Balance | (101) | (112) | |
Other comprehensive income (loss) before reclassifications and tax impact | (23) | 18 | |
Tax benefit | 5 | (7) | |
Other comprehensive income (loss), net of tax, before reclassifications | (18) | 11 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | |
Total other comprehensive income (loss) | (18) | 11 | |
Ending Balance | (119) | (101) | (112) |
Pension Liability Gain (Loss) | |||
Accumulated other comprehensive income (loss) rollforward [Roll Forward] | |||
Beginning Balance | (120) | (84) | |
Other comprehensive income (loss) before reclassifications and tax impact | (26) | (54) | |
Tax benefit | 7 | 14 | |
Other comprehensive income (loss), net of tax, before reclassifications | (19) | (40) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 6 | 4 | |
Total other comprehensive income (loss) | (13) | (36) | |
Ending Balance | $ (133) | $ (120) | $ (84) |
COMPREHENSIVE (LOSS) INCOME - R
COMPREHENSIVE (LOSS) INCOME - RECLASSIFICATION OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (EXPENSE) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest expense | $ (48) | $ (30) | $ (37) |
Cost of products sold | (1,685) | (1,864) | (1,918) |
Other expense (income), net | (1) | 12 | 35 |
Net loss before tax | (60) | 345 | (958) |
Provision for income taxes | (23) | (82) | (53) |
Net gain (loss) after tax | (83) | 263 | (1,011) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net gain (loss) after tax | (8) | (5) | 30 |
Gain and (Loss) on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net loss before tax | (2) | (1) | (11) |
Provision for income taxes | 0 | 0 | 1 |
Net gain (loss) after tax | (2) | (1) | (10) |
Gain and (Loss) on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | Interest rate swaps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest expense | (4) | (2) | (2) |
Gain and (Loss) on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange forward contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Cost of products sold | 2 | 1 | (9) |
Realized gain on available-for-sale securities: | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other expense (income), net | 0 | 0 | 45 |
Provision for income taxes | 0 | 0 | (1) |
Net gain (loss) after tax | 0 | 0 | 44 |
Pension Liability Gain (Loss) | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net loss before tax | (8) | (5) | (6) |
Provision for income taxes | 2 | 1 | 2 |
Net gain (loss) after tax | (6) | (4) | (4) |
Amortization of prior service benefits | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net loss before tax | 1 | 1 | 0 |
Amortization of net actuarial losses | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net loss before tax | $ (9) | $ (6) | $ (6) |
BUSINESS COMBINATIONS - ADDITIO
BUSINESS COMBINATIONS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Dec. 31, 2020 | May 01, 2018 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 3,986 | $ 3,986 | $ 3,431 | $ 3,397 | |
Transaction related costs | 16 | ||||
Privately Held Dental Service | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire equity method investments | $ 45 | ||||
Reclassification out of Accumulated Other Comprehensive Income | DIO Corporation | |||||
Business Acquisition [Line Items] | |||||
Unrealized holding gain, available-for-sale securities | $ 44 | ||||
Straight Smile LLC | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interest acquired | 100.00% | 100.00% | |||
Payments to acquire businesses, gross | $ 1,000 | ||||
Total acquisition consideration | $ 1,000 | ||||
Goodwill | $ 631 | $ 631 | |||
OraMetrix, Inc. | |||||
Business Acquisition [Line Items] | |||||
Total acquisition consideration | $ 120 | ||||
Goodwill | 58 | ||||
Additional consideration based on earn out | $ 30 |
BUSINESS COMBINATIONS - FAIR VA
BUSINESS COMBINATIONS - FAIR VALUES OF ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,986 | $ 3,397 | $ 3,431 |
Straight Smile LLC | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 13 | ||
Current assets | 15 | ||
Intangible assets | 416 | ||
Current liabilities | (32) | ||
Long-term assets (liabilities), net | 2 | ||
Net assets acquired | 414 | ||
Goodwill | 631 | ||
Purchase consideration | $ 1,045 |
BUSINESS COMBINATIONS - SUMMARY
BUSINESS COMBINATIONS - SUMMARY OF INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | May 01, 2018 |
Straight Smile LLC | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired, amount | $ 416 | |
OraMetrix, Inc. | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired, amount | $ 97 | |
Tradenames and trademarks | OraMetrix, Inc. | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets acquired, amount | 14 | |
Non-compete agreements | Straight Smile LLC | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired, amount | $ 16 | |
Weighted average useful life (in years) | 5 years | |
Technology know-how | Straight Smile LLC | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired, amount | $ 210 | |
Weighted average useful life (in years) | 10 years | |
Customer relationships | OraMetrix, Inc. | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired, amount | $ 18 | |
Weighted average useful life (in years) | 15 years | |
Developed technology and patents | OraMetrix, Inc. | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired, amount | $ 65 | |
Weighted average useful life (in years) | 15 years | |
Tradenames and trademarks | Straight Smile LLC | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired, amount | $ 190 | |
Weighted average useful life (in years) | 20 years |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION - NARRATIVE (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
SEGMENT AND GEOGRAPHIC INFORM_4
SEGMENT AND GEOGRAPHIC INFORMATION - NET SALES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 2 | ||
Revenue, Major Customer [Line Items] | |||
Total net sales | $ 3,342 | $ 4,029 | $ 3,986 |
Technologies & Equipment | |||
Revenue, Major Customer [Line Items] | |||
Total net sales | 1,961 | 2,283 | 2,168 |
Consumables | |||
Revenue, Major Customer [Line Items] | |||
Total net sales | $ 1,381 | $ 1,746 | $ 1,818 |
SEGMENT AND GEOGRAPHIC INFORM_5
SEGMENT AND GEOGRAPHIC INFORMATION - DEPRECIATION AND AMORTIZATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Depreciation by Segment [Line Items] | |||
Depreciation and amortization | $ 334 | $ 323 | $ 331 |
Operating Segments | Technologies & Equipment | |||
Reconciliation of Depreciation by Segment [Line Items] | |||
Depreciation and amortization | 261 | 258 | 238 |
Operating Segments | Consumables | |||
Reconciliation of Depreciation by Segment [Line Items] | |||
Depreciation and amortization | 61 | 54 | 91 |
All Other | |||
Reconciliation of Depreciation by Segment [Line Items] | |||
Depreciation and amortization | $ 12 | $ 11 | $ 2 |
SEGMENT AND GEOGRAPHIC INFORM_6
SEGMENT AND GEOGRAPHIC INFORMATION - SEGMENT OPERATING INCOME (LOSS) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment adjusted operating income | $ (12,000,000) | $ 361,000,000 | $ (958,000,000) |
Goodwill impairment | 157,000,000 | 0 | 1,086,000,000 |
Interest expense | 48,000,000 | 30,000,000 | 37,000,000 |
Interest income | (1,000,000) | (2,000,000) | (2,000,000) |
Other expense (income), net | 1,000,000 | (12,000,000) | (35,000,000) |
Amortization of intangible assets | 192,000,000 | 190,000,000 | 198,000,000 |
(Loss) income before income taxes | (60,000,000) | 345,000,000 | (958,000,000) |
Previously Reported | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
All other | (38,000,000) | (36,000,000) | |
Technologies & Equipment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Goodwill impairment | 157,000,000 | 1,086,000,000 | |
Consumables | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Goodwill impairment | 0 | ||
Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment adjusted operating income | 701,000,000 | 907,000,000 | 774,000,000 |
Operating Segments | Technologies & Equipment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment adjusted operating income | 387,000,000 | 467,000,000 | 312,000,000 |
Operating Segments | Consumables | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment adjusted operating income | 314,000,000 | 440,000,000 | 462,000,000 |
Corporate, Reconciling Items, And Eliminations | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
All other | 281,000,000 | 269,000,000 | 220,000,000 |
Segment Reconciling Items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Goodwill impairment | 157,000,000 | 0 | 1,086,000,000 |
Restructuring and other costs | 77,000,000 | 81,000,000 | 221,000,000 |
Interest expense | 48,000,000 | 30,000,000 | 37,000,000 |
Interest income | (1,000,000) | (2,000,000) | (2,000,000) |
Other expense (income), net | 1,000,000 | (12,000,000) | (35,000,000) |
Amortization of intangible assets | 192,000,000 | 189,000,000 | 198,000,000 |
Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations | $ 6,000,000 | $ 7,000,000 | $ 7,000,000 |
SEGMENT AND GEOGRAPHIC INFORM_7
SEGMENT AND GEOGRAPHIC INFORMATION - CAPITAL EXPENDITURES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capital expenditures | $ 87 | $ 123 | $ 183 |
Operating Segments | Technologies & Equipment | |||
Capital expenditures | 50 | 73 | 126 |
Operating Segments | Consumables | |||
Capital expenditures | 26 | 34 | 43 |
All Other | |||
Capital expenditures | $ 11 | $ 16 | $ 14 |
SEGMENT AND GEOGRAPHIC INFORM_8
SEGMENT AND GEOGRAPHIC INFORMATION - ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 9,342 | $ 8,603 |
Operating Segments | Technologies & Equipment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 7,014 | 5,927 |
Operating Segments | Consumables | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 2,172 | 2,443 |
Corporate, Reconciling Items, And Eliminations | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 156 | $ 233 |
SEGMENT AND GEOGRAPHIC INFORM_9
SEGMENT AND GEOGRAPHIC INFORMATION - INFORMATION ABOUT THE COMPANY'S OPERATINGS IN DIFFERENT GEOGRAPHIC AREAS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 3,342 | $ 4,029 | $ 3,986 |
Property, plant, and equipment, net | 791 | 802 | 871 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,109 | 1,375 | 1,270 |
Property, plant, and equipment, net | 145 | 168 | 211 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 439 | 478 | 494 |
Property, plant, and equipment, net | 337 | 327 | 340 |
Sweden | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 53 | 56 | 55 |
Property, plant, and equipment, net | 110 | 99 | 99 |
Other Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,741 | 2,120 | 2,167 |
Property, plant, and equipment, net | $ 199 | $ 208 | $ 221 |
SEGMENT AND GEOGRAPHIC INFOR_10
SEGMENT AND GEOGRAPHIC INFORMATION - SCHEDULE OF SALES BY PRODUCT CATEGORY (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total net sales | $ 3,342 | $ 4,029 | $ 3,986 |
Dental technology and equipment products | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,674 | 2,005 | 1,897 |
Dental consumables products | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,337 | 1,688 | 1,740 |
Healthcare consumable products | |||
Segment Reporting Information [Line Items] | |||
Total net sales | $ 331 | $ 336 | $ 349 |
SEGMENT AND GEOGRAPHIC INFOR_11
SEGMENT AND GEOGRAPHIC INFORMATION - CONCENTRATION RISK (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer Benchmark | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | 13.00% | 10.00% |
Revenue from Contract with Customer Benchmark | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 10.00% | |
Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18.00% | 17.00% | 13.00% |
OTHER EXPENSE (INCOME) , NET (D
OTHER EXPENSE (INCOME) , NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange transaction (gain) loss | $ (13) | $ (27) | $ 6 |
Other expense (income), net | 14 | 15 | (41) |
Total other expense (income), net | $ 1 | $ (12) | $ (35) |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 264 | $ 356 |
Work-in-process | 68 | 83 |
Raw materials and supplies | 134 | 123 |
Inventories, net | $ 466 | $ 562 |
INVENTORIES, NET - ADDITIONAL I
INVENTORIES, NET - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserve | $ 117 | $ 85 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 2,183 | $ 2,035 | |
Less: Accumulated depreciation | 1,392 | 1,233 | |
Property, plant and equipment, net | 791 | 802 | $ 871 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 54 | 52 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 595 | 554 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,414 | 1,327 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 120 | $ 102 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease, remaining lease term | 1 year |
Lessee, lease, renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease, remaining lease term | 10 years |
Lessee, lease, renewal term | 3 years |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Finance leases | $ 1 | $ 1 |
Operating leases | 176 | 159 |
Total right-of-use assets | 177 | 160 |
Current Liabilities: | ||
Operating leases | 48 | 44 |
Noncurrent liabilities | ||
Finance leases | 1 | 1 |
Operating leases | 130 | 120 |
Total lease liabilities | $ 179 | $ 165 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Weighted-average discount rate | ||
Finance leases | 3.70% | 3.60% |
Operating leases | 3.00% | 2.90% |
Weighted-average remaining lease term in years | ||
Finance leases | 6 years 6 months | 7 years |
Operating leases | 5 years 2 months 12 days | 5 years 3 months 18 days |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 57 | $ 55 |
Short-term lease cost | 1 | 1 |
Variable lease cost | 9 | 10 |
Total lease cost | $ 67 | $ 66 |
LEASES - Contractual Maturity D
LEASES - Contractual Maturity Dates (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finance Leases | ||
2021 | $ 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 and beyond | 1 | |
Total lease payments | 1 | |
Less imputed interest | 0 | |
Present value of lease liabilities | 1 | |
Operating Leases | ||
2021 | 52 | |
2022 | 41 | |
2023 | 31 | |
2024 | 22 | |
2025 | 14 | |
2026 and beyond | 34 | |
Total lease payments | 194 | |
Less imputed interest | 16 | |
Present value of lease liabilities | 178 | |
Total | ||
2021 | 52 | |
2022 | 41 | |
2023 | 31 | |
2024 | 22 | |
2025 | 14 | |
2026 and beyond | 35 | |
Total lease payments | 195 | |
Less imputed interest | 16 | |
Total lease liabilities | $ 179 | $ 165 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows paid for operating leases | $ 56 | $ 53 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||
Operating leases | $ 43 | $ 35 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - ADDITIONAL INFORMATION (Details) | Jan. 01, 2019reporting_unit | Dec. 31, 2018USD ($)reporting_unit | Mar. 31, 2020USD ($)reporting_unit | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)reporting_unit | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Goodwill [Line Items] | |||||||
Number of reporting units | reporting_unit | 5 | 11 | 5 | 5 | |||
Goodwill | $ 3,431,000,000 | $ 3,986,000,000 | $ 3,397,000,000 | $ 3,431,000,000 | |||
Impairment | 157,000,000 | 0 | 1,086,000,000 | ||||
Indefinite-lived intangible asset impairment | $ 5,000,000 | 39,000,000 | 5,000,000 | 179,000,000 | |||
Amortization of intangible assets | 192,000,000 | 190,000,000 | 198,000,000 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||
2021 | 216,000,000 | ||||||
2022 | 215,000,000 | ||||||
2023 | 217,000,000 | ||||||
2024 | 219,000,000 | ||||||
2025 | 223,000,000 | ||||||
Tradenames and trademarks | |||||||
Goodwill [Line Items] | |||||||
Indefinite-lived intangibles, carrying amount | $ 642,000,000 | 628,000,000 | |||||
C O V I D19 [Member] | |||||||
Goodwill [Line Items] | |||||||
Number of reporting units | reporting_unit | 4 | ||||||
Minimum | |||||||
Goodwill [Line Items] | |||||||
Indefinite lived intangible asset, discount rate | 10.00% | ||||||
Minimum | Measurement Input, Discount Rate [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill, measurement input | 0.090 | ||||||
Minimum | Measurement Input, Discount Rate [Member] | C O V I D19 [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill, measurement input | 0.095 | ||||||
Maximum | |||||||
Goodwill [Line Items] | |||||||
Indefinite lived intangible asset, discount rate | 17.50% | ||||||
Maximum | Measurement Input, Discount Rate [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill, measurement input | 0.115 | ||||||
Maximum | Measurement Input, Discount Rate [Member] | C O V I D19 [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill, measurement input | 0.115 | ||||||
Technologies & Equipment | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 2,545,000,000 | $ 3,092,000,000 | $ 2,516,000,000 | 2,545,000,000 | |||
Impairment | 157,000,000 | $ 1,086,000,000 | |||||
Equipment And Instruments Reporting Unit | Tradenames and trademarks | |||||||
Goodwill [Line Items] | |||||||
Indefinite-lived intangibles, carrying amount | 82,000,000 | ||||||
Indefinite-lived intangible asset impairment | $ 39,000,000 | ||||||
Equipment And Instruments Reporting Unit | Technologies & Equipment | |||||||
Goodwill [Line Items] | |||||||
Goodwill | 292,000,000 | ||||||
Equipment And Instruments Reporting Unit | Technologies & Equipment | C O V I D19 [Member] | |||||||
Goodwill [Line Items] | |||||||
Impairment | $ 157,000,000 | ||||||
MIS Implants Technologies Ltd. and Health Consumable Business | Technologies & Equipment | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 1,232,000,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - GOODWILL BY REPORTABLE SEGMENT (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Balance, beginning of the year | $ 3,397,000,000 | $ 3,431,000,000 | |
Acquisition activity | 631,000,000 | 3,000,000 | |
Divestiture of business | (4,000,000) | ||
Impairment | (157,000,000) | 0 | $ (1,086,000,000) |
Effect of exchange rate changes | 115,000,000 | (33,000,000) | |
Balance, end of the year | 3,986,000,000 | 3,397,000,000 | 3,431,000,000 |
Technologies & Equipment | |||
Goodwill [Roll Forward] | |||
Balance, beginning of the year | 2,516,000,000 | 2,545,000,000 | |
Acquisition activity | 631,000,000 | 3,000,000 | |
Divestiture of business | (4,000,000) | ||
Impairment | (157,000,000) | (1,086,000,000) | |
Effect of exchange rate changes | 102,000,000 | (28,000,000) | |
Balance, end of the year | 3,092,000,000 | 2,516,000,000 | 2,545,000,000 |
Consumables | |||
Goodwill [Roll Forward] | |||
Balance, beginning of the year | 881,000,000 | 886,000,000 | |
Acquisition activity | 0 | 0 | |
Divestiture of business | 0 | ||
Impairment | 0 | ||
Effect of exchange rate changes | 13,000,000 | (5,000,000) | |
Balance, end of the year | $ 894,000,000 | $ 881,000,000 | $ 886,000,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - GOODWILL CARRYING AMOUNT (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | |||
Gross Carrying Amount | $ 6,879 | $ 6,134 | |
Cumulative Impairment | (2,893) | (2,737) | |
Net Carrying Amount | 3,986 | 3,397 | $ 3,431 |
Technologies & Equipment | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 5,985 | 5,253 | |
Cumulative Impairment | (2,893) | (2,737) | |
Net Carrying Amount | 3,092 | 2,516 | 2,545 |
Consumables | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | 894 | 881 | |
Cumulative Impairment | 0 | 0 | |
Net Carrying Amount | $ 894 | $ 881 | $ 886 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - IDENTIFIABLE DEFINITE-LIVED ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | $ 3,133 | $ 2,556 |
Accumulated Amortization | (1,271) | (1,008) |
Finite-lived intangibles, net carrying amount | 1,862 | 1,548 |
Identifiable intangible assets, gross carrying amount | 3,775 | 3,184 |
Identifiable intangible assets, net carrying amount | 2,504 | 2,176 |
Tradenames and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles, carrying amount | 642 | 628 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | 1,681 | 1,371 |
Accumulated Amortization | (677) | (518) |
Finite-lived intangibles, net carrying amount | 1,004 | 853 |
Tradenames and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | 273 | 79 |
Accumulated Amortization | (70) | (63) |
Finite-lived intangibles, net carrying amount | 203 | 16 |
Licensing agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | 37 | 36 |
Accumulated Amortization | (30) | (28) |
Finite-lived intangibles, net carrying amount | 7 | 8 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangibles, gross carrying amount | 1,142 | 1,070 |
Accumulated Amortization | (494) | (399) |
Finite-lived intangibles, net carrying amount | $ 648 | $ 671 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 79 | $ 81 |
Accrued value-added tax on purchases | 36 | 46 |
Deposits | 33 | 40 |
Other current assets | 66 | 84 |
Prepaid expenses and other current assets, net | $ 214 | $ 251 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Payroll, commissions, bonuses, other cash compensation and employee benefits | $ 142 | $ 179 |
Sales and marketing programs | 21 | 17 |
Reserve for dealer rebates | 134 | 125 |
Restructuring costs | 31 | 28 |
Accrued vacation and holidays | 41 | 37 |
Professional and legal costs | 33 | 36 |
Current portion of derivatives | 32 | 3 |
General insurance | 12 | 12 |
Warranty liabilities | 18 | 18 |
Third party royalties | 11 | 11 |
Deferred income | 41 | 29 |
Accrued interest | 13 | 11 |
Accrued property taxes | 13 | 11 |
Current operating lease liabilities | 48 | 44 |
Other | 63 | 68 |
Accrued liabilities | $ 653 | $ 629 |
FINANCING ARRANGEMENTS - SHORT
FINANCING ARRANGEMENTS - SHORT TERM BORROWINGS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | ||
Total short-term debt | $ 299 | $ 2 |
Add: Current portion of long-term debt | 296 | 0 |
Maximum month-end short-term debt outstanding during the year | $ 299 | $ 148 |
Weighted-average interest rate on short-term debt at year-end | 1.90% | 3.70% |
Other short-term loans | ||
Short-term Debt [Line Items] | ||
Total short-term debt | $ 3 | $ 2 |
Fixed interest rate | 1.90% | 3.70% |
FINANCING ARRANGEMENTS - ADDITI
FINANCING ARRANGEMENTS - ADDITIONAL INFORMATION (Details) | Jun. 11, 2020JPY (¥) | May 26, 2020USD ($) | May 12, 2020EUR (€) | May 05, 2020EUR (€) | Apr. 09, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 11, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||
Average amount of short-term debt outstanding during the year | $ 95,000,000 | $ 50,000,000 | |||||||
Notes payable and current portion of long-term debt | $ 299,000,000 | 299,000,000 | 2,000,000 | ||||||
Total unused lines of credit | 1,173,000,000 | 1,173,000,000 | |||||||
Cash Flow Hedges | Treasury Lock | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 10 years | ||||||||
Notional amount | $ 150,000,000 | ||||||||
Revolving Credit Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facilities, maximum borrowing capacity | ¥ 3,300,000,000 | € 30,000,000 | € 40,000,000 | $ 310,000,000 | |||||
Notes payable and current portion of long-term debt | 0 | 0 | |||||||
Debt instrument, term | 364 days | 364 days | 364 days | 364 days | |||||
Line of Credit | 2018 Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facilities, maximum borrowing capacity | $ 700,000,000 | 700,000,000 | |||||||
Repayments of long-term lines of credit | $ 700,000,000 | ||||||||
Line of Credit | 2018 Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.25% | ||||||||
Line of Credit | Corporate commercial paper facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facilities, maximum borrowing capacity | $ 500,000,000 | 500,000,000 | |||||||
Average amount of short-term debt outstanding during the year | 2,000,000 | ||||||||
Notes payable and current portion of long-term debt | 0 | 0 | $ 0 | ||||||
Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Notes payable and current portion of long-term debt | $ 0 | $ 0 | |||||||
Debt instrument, term | 5 years | ||||||||
Senior Unsecured Notes Maturing June 1, 2030 | Cash Flow Hedges | Treasury Lock | |||||||||
Debt Instrument [Line Items] | |||||||||
Cash paid on derivative contracts | 31,000,000 | ||||||||
Notional amount | 150,000,000 | ||||||||
Senior Unsecured Notes Maturing June 1, 2030 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument face amount | $ 750,000,000 | ||||||||
Debt instrument,interest rate, stated percentage | 3.25% | ||||||||
Proceeds from issuance of unsecured debt | $ 748,000,000 | ||||||||
Debt instrument, unamortized discount | 2,000,000 | ||||||||
Debt issuance costs, gross | $ 6,000,000 |
FINANCING ARRANGEMENTS - LONG T
FINANCING ARRANGEMENTS - LONG TERM BORROWINGS (Details) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020CHF (SFr) | Dec. 31, 2020JPY (¥) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Floating rate senior term loan | $ 2,284,000,000 | $ 1,438,000,000 | |||
Less: Current portion (included in notes payable and current portion of long-term debt) | 296,000,000 | 0 | |||
Less: Long-term portion of deferred financing costs | 10,000,000 | 5,000,000 | |||
Long-term debt | 1,978,000,000 | 1,433,000,000 | |||
Senior Notes | Fixed rate senior notes $450 million due August 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | 450,000,000 | ||||
Floating rate senior term loan | $ 296,000,000 | $ 296,000,000 | |||
Debt, fixed rate | 4.10% | 4.10% | 4.10% | 4.10% | 4.10% |
Senior Notes | Fixed rate senior notes 750 million due June 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 750,000,000 | ||||
Floating rate senior term loan | $ 750,000,000 | $ 0 | |||
Debt, fixed rate | 3.30% | 3.30% | 3.30% | 3.30% | 0.00% |
Private Placement Notes | Private placement notes 70 million euros due October 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | € | € 70,000,000 | ||||
Floating rate senior term loan | $ 85,000,000 | $ 78,000,000 | |||
Debt, fixed rate | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Private Placement Notes | Private placement notes 25 million Swiss franc due December 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | SFr | SFr 25,000,000 | ||||
Floating rate senior term loan | $ 28,000,000 | $ 26,000,000 | |||
Debt, fixed rate | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% |
Private Placement Notes | Private placement notes 97 million euros due December 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | € | € 97,000,000 | ||||
Floating rate senior term loan | $ 118,000,000 | $ 109,000,000 | |||
Debt, fixed rate | 2.10% | 2.10% | 2.10% | 2.10% | 2.10% |
Private Placement Notes | Private placement notes 26 million euros due February 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | € | € 26,000,000 | ||||
Floating rate senior term loan | $ 32,000,000 | $ 29,000,000 | |||
Debt, fixed rate | 2.10% | 2.10% | 2.10% | 2.10% | 2.10% |
Private Placement Notes | Private placement notes 58 million Swiss franc due August 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | SFr | SFr 58,000,000 | ||||
Floating rate senior term loan | $ 65,000,000 | $ 60,000,000 | |||
Debt, fixed rate | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Private Placement Notes | Private placement notes 106 million euros due August 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | € | € 106,000,000 | ||||
Floating rate senior term loan | $ 129,000,000 | $ 119,000,000 | |||
Debt, fixed rate | 2.30% | 2.30% | 2.30% | 2.30% | 2.30% |
Private Placement Notes | Private placement notes 70 million euros due October 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | € | € 70,000,000 | ||||
Floating rate senior term loan | $ 85,000,000 | $ 78,000,000 | |||
Debt, fixed rate | 1.30% | 1.30% | 1.30% | 1.30% | 1.30% |
Private Placement Notes | Private placement notes 8 million Swiss franc due December 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | SFr | SFr 8,000,000 | ||||
Floating rate senior term loan | $ 8,000,000 | $ 8,000,000 | |||
Debt, fixed rate | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Private Placement Notes | Private placement notes 15 million euros due December 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | € | € 15,000,000 | ||||
Floating rate senior term loan | $ 18,000,000 | $ 17,000,000 | |||
Debt, fixed rate | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% |
Private Placement Notes | Private placement notes 140 million Swiss franc due August 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | SFr | SFr 140,000,000 | ||||
Floating rate senior term loan | $ 158,000,000 | $ 145,000,000 | |||
Debt, fixed rate | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% |
Private Placement Notes | Private placement notes 70 million euros due October 2029 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | € | € 70,000,000 | ||||
Floating rate senior term loan | $ 85,000,000 | $ 78,000,000 | |||
Debt, fixed rate | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Private Placement Notes | Private placement notes 45 million euros due February 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | € | € 45,000,000 | ||||
Floating rate senior term loan | $ 55,000,000 | $ 51,000,000 | |||
Debt, fixed rate | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |
Private Placement Notes | Private placement notes 65 million Swiss franc due August 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | SFr | SFr 65,000,000 | ||||
Floating rate senior term loan | $ 73,000,000 | $ 67,000,000 | |||
Debt, fixed rate | 1.30% | 1.30% | 1.30% | 1.30% | 1.30% |
Private Placement Notes | Private placement notes 12.6 billion Japanese yen due September 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | ¥ | ¥ 12,600,000,000 | ||||
Floating rate senior term loan | $ 122,000,000 | $ 116,000,000 | |||
Debt, fixed rate | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Private Placement Notes | Private placement notes 70 million euros due October 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | € | € 70,000,000 | ||||
Floating rate senior term loan | $ 85,000,000 | $ 79,000,000 | |||
Debt, fixed rate | 1.70% | 1.70% | 1.70% | 1.70% | 1.70% |
Other Borrowings Various Currencies And Rates | |||||
Debt Instrument [Line Items] | |||||
Floating rate senior term loan | $ 7,000,000 | $ 4,000,000 | |||
Private Placement | Private placement notes 70 million euros due October 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | € | € 70,000,000 | ||||
Floating rate senior term loan | $ 85,000,000 | $ 78,000,000 | |||
Debt, fixed rate | 1.60% | 1.60% | 1.60% | 1.60% | 1.60% |
FINANCING ARRANGEMENTS - CONTRA
FINANCING ARRANGEMENTS - CONTRACTUAL MATURITY DATES OF THE VAIROUS BORROWINGS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 296 | |
2022 | 3 | |
2023 | 0 | |
2024 | 86 | |
2025 | 147 | |
2025 and beyond | 1,752 | |
Floating rate senior term loan | $ 2,284 | $ 1,438 |
EQUITY - ADDITIONAL INFORMATION
EQUITY - ADDITIONAL INFORMATION (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | |||
Common shares available under share repurchase program (in shares) | shares | 350,000,000 | |||
Treasury shares purchased | $ 140,000,000 | $ 260,000,000 | $ 250,000,000 | |
Proceeds from exercised stock options | $ 11,000,000 | $ 109,000,000 | $ 28,000,000 | |
Number of stock option exercised (in shares) | shares | 300,000 | 2,700,000 | 1,000,000 | |
Conversion ratio for RSUs and restricted stock | 3.09 | |||
Share-based compensation expense | $ 46,000,000 | $ 65,000,000 | $ 20,000,000 | |
Intrinsic value of options exercised | 3,000,000 | 37,000,000 | 22,000,000 | |
Total fair value of share vested during the period | $ 54,000,000 | 44,000,000 | 48,000,000 | |
Weighted average remaining contractual life (in years) | 5 years 3 months 18 days | |||
Weighted average remaining contractual term of exercisable options (in years) | 3 years 10 months 24 days | |||
Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 45,000,000 | 63,000,000 | 18,000,000 | |
Cost of products sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,000,000 | $ 2,000,000 | 1,000,000 | |
Restructuring and other costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,000,000 | |||
Equity Incentive Plan 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized grants under the plan (in shares) | shares | 25,000,000 | |||
Number of shares available for grant (in shares) | shares | 25,000,000 | |||
Equity Incentive Plan 2016 | Key Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cap on restricted stock or RSU (in shares) | shares | 1,000,000 | |||
Nonqualified Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock option exercised (in shares) | shares | 300,000 | |||
Number of unvested stock options (in shares) | shares | 1,300,000 | |||
Unamortized compensation costs | $ 8,000,000 | |||
Weighted average period for cost recognition | 1 year 9 months 18 days | |||
Weighted average remaining contractual life (in years) | 5 years 3 months 18 days | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unamortized compensation costs | $ 70,000,000 | |||
Weighted average period for cost recognition | 2 years 1 month 6 days |
EQUITY - TOTAL OUTSTANDING SHAR
EQUITY - TOTAL OUTSTANDING SHARES (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Shares Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 221.3 | 223 | 226.8 |
Shares of treasury stock issued (in shares) | 1.1 | 3.1 | 1.6 |
Repurchase of common stock at an average cost (in shares) | (3.7) | (4.8) | (5.4) |
Ending balance (in shares) | 218.7 | 221.3 | 223 |
Stock repurchased under the repurchase program, average price (in dollars per share) | $ 38.25 | $ 54.18 | $ 45.92 |
Common Stock | |||
Increase (Decrease) in Shares Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 264.5 | 264.5 | 264.5 |
Shares of treasury stock issued (in shares) | 0 | 0 | 0 |
Repurchase of common stock at an average cost (in shares) | 0 | 0 | 0 |
Ending balance (in shares) | 264.5 | 264.5 | 264.5 |
Treasury Stock | |||
Increase (Decrease) in Shares Outstanding [Roll Forward] | |||
Beginning balance (in shares) | 43.2 | 41.5 | 37.7 |
Shares of treasury stock issued (in shares) | 1.1 | 3.1 | 1.6 |
Repurchase of common stock at an average cost (in shares) | (3.7) | (4.8) | (5.4) |
Ending balance (in shares) | 45.8 | 43.2 | 41.5 |
EQUITY - TOTAL STOCK BASED COMP
EQUITY - TOTAL STOCK BASED COMPENSATION EXPENSE AND THE TAX RELATED BENEFIT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Stock option expense | $ 7 | $ 7 | $ 7 |
RSU expense | 39 | 58 | 13 |
Total stock based compensation expense | 46 | 65 | 20 |
Related deferred income tax benefit | $ 5 | $ 8 | $ 2 |
EQUITY - ASSUMPTIONS USED TO DE
EQUITY - ASSUMPTIONS USED TO DETERMINE COMPENSATION COST FOR THE COMPANY'S NON-QUALIFIED STOCK OPTIONS ISSUED (Details) - Nonqualified Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value per share (in dollars per share) | $ 10.03 | $ 12.20 | $ 12.38 |
Expected dividend yield | 0.84% | 0.71% | 0.64% |
Risk-free interest rate | 0.77% | 2.36% | 2.72% |
Expected volatility | 24.00% | 22.60% | 19.70% |
Expected life (years) | 5 years 5 months 26 days | 6 years | 6 years 25 days |
EQUITY - NON-QUALIFIED STOCK OP
EQUITY - NON-QUALIFIED STOCK OPTION TRANSACTIONS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares | |||
Exercised (in shares) | (0.3) | (2.7) | (1) |
Nonqualified Stock Options | |||
Shares | |||
Beginning balance (in shares) | 3.8 | ||
Granted (in shares) | 0.7 | ||
Exercised (in shares) | (0.3) | ||
Cancelled (in shares) | (0.2) | ||
Ending balance (in shares) | 4 | 3.8 | |
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 50.02 | ||
Granted (in dollars per share) | 47.84 | ||
Exercised (in dollars per share) | 39.59 | ||
Cancelled (in dollars per share) | 56.21 | ||
Ending balance (in dollars per share) | $ 50.01 | $ 50.02 | |
Aggregate Intrinsic Value | |||
Balance | $ 17 | $ 28 | |
Exercisable | |||
Shares at year end (in shares) | 2.7 | 2.7 | |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 50.28 | $ 48.85 | |
Aggregate Intrinsic Value | $ 12 | $ 23 |
EQUITY - INFORMATION ABOUT NON-
EQUITY - INFORMATION ABOUT NON-QUALIFIED STOCK OPTIONS OUTSTANDING (Details) - $ / shares shares in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Remaining Contractual Life (in years) | 5 years 3 months 18 days | |
Nonqualified Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number Outstanding (in shares) | 4 | 3.8 |
Weighted Average Remaining Contractual Life (in years) | 5 years 3 months 18 days | |
Weighted Average Exercise Price (in dollars per share) | $ 50.01 | $ 50.02 |
Number Exercisable (in shares) | 2.7 | 2.7 |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 50.28 | $ 48.85 |
Nonqualified Stock Options | Exercise Prices: $30.01 - $40.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, lower range limit (in dollars per share) | 30.01 | |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 40 | |
Number Outstanding (in shares) | 0.4 | |
Weighted Average Remaining Contractual Life (in years) | 1 year 6 months | |
Weighted Average Exercise Price (in dollars per share) | $ 37.54 | |
Number Exercisable (in shares) | 0.4 | |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 37.55 | |
Nonqualified Stock Options | Exercise Prices: $40.01 - $50.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, lower range limit (in dollars per share) | 40.01 | |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 50 | |
Number Outstanding (in shares) | 2 | |
Weighted Average Remaining Contractual Life (in years) | 6 years 3 months 18 days | |
Weighted Average Exercise Price (in dollars per share) | $ 46.83 | |
Number Exercisable (in shares) | 0.9 | |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 45.22 | |
Nonqualified Stock Options | Exercise Prices: $50.01 - $60.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, lower range limit (in dollars per share) | 50.01 | |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 60 | |
Number Outstanding (in shares) | 1.2 | |
Weighted Average Remaining Contractual Life (in years) | 4 years 9 months 18 days | |
Weighted Average Exercise Price (in dollars per share) | $ 54.82 | |
Number Exercisable (in shares) | 1 | |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 54.69 | |
Nonqualified Stock Options | Exercise Prices: $60.01 - $70.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, lower range limit (in dollars per share) | 60.01 | |
Range of Exercise Prices, upper range limit (in dollars per share) | $ 70 | |
Number Outstanding (in shares) | 0.4 | |
Weighted Average Remaining Contractual Life (in years) | 5 years 2 months 12 days | |
Weighted Average Exercise Price (in dollars per share) | $ 62.26 | |
Number Exercisable (in shares) | 0.4 | |
Weighted Average Exercise Price Exercisable (in dollars per share) | $ 62.25 |
EQUITY - UNVESTED RSU TRANSACTI
EQUITY - UNVESTED RSU TRANSACTIONS (Details) - Restricted Stock Units (RSUs) shares in Millions | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shares | |
Beginning balance, unvested (in shares) | shares | 4.5 |
Granted (in shares) | shares | 1 |
Vested (in shares) | shares | (0.9) |
Forfeited (in shares) | shares | (0.4) |
Ending balance, unvested (in shares) | shares | 4.2 |
Weighted Average Grant Date Fair Value | |
Beginning balance, unvested (in dollars per share) | $ / shares | $ 47.79 |
Granted (in dollars per share) | $ / shares | 49.40 |
Vested (in dollars per share) | $ / shares | 49.74 |
Forfeited (in dollars per share) | $ / shares | 46.16 |
Ending balance, unvested (in dollars per share) | $ / shares | $ 47.29 |
INCOME TAXES - COMPONENTS OF IN
INCOME TAXES - COMPONENTS OF INCOME BEFORE INCOME TAXES FROM OPERATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (109) | $ (110) | $ (279) |
Foreign | 49 | 455 | (679) |
(Loss) income before income taxes | $ (60) | $ 345 | $ (958) |
INCOME TAXES - COMPONENTS OF TH
INCOME TAXES - COMPONENTS OF THE PROVISION FOR INCOME TAXES FROM OPERATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
U.S. federal | $ (5) | $ (11) | $ 10 |
U.S. state | 1 | 1 | 3 |
Foreign | 91 | 129 | 102 |
Total | 87 | 119 | 115 |
Deferred: | |||
U.S. federal | 0 | (2) | 46 |
U.S. state | (2) | 2 | (3) |
Foreign | (62) | (37) | (105) |
Total | (64) | (37) | (62) |
Provision for income taxes | $ 23 | $ 82 | $ 53 |
INCOME TAXES - THE RECONCILIATI
INCOME TAXES - THE RECONCILIATION OF THE U.S. FEDERAL STATUTORY TAX RATE TO THE EFFECTIVE RATE (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 2.30% | 0.70% | (0.10%) |
Federal benefit of R&D and foreign tax credits | 15.80% | (2.00%) | 1.00% |
US other permanent differences | (0.056) | 0.008 | (0.001) |
Tax effect of international operations | 4.70% | 0.40% | 1.40% |
Global Intangible Low Taxed Income (GILTI) | (10.90%) | 3.70% | (1.10%) |
Foreign Derived Intangible Income (FDII) | 9.90% | (0.10%) | 0.00% |
Net effect of tax audit activity | (6.90%) | 0.40% | (1.00%) |
Tax effect of enacted statutory rate changes on Non-U.S. jurisdictions | (0.20%) | 0.10% | 0.30% |
Federal tax on unremitted earnings of certain foreign subsidiaries | (4.60%) | 0.10% | (0.10%) |
Valuation allowance adjustments | (12.90%) | (1.30%) | (5.70%) |
U.S. tax reform - net impacts | 0 | 0 | 0.004 |
Tax effect of impairment of goodwill and intangibles | (51.00%) | (0.20%) | (22.20%) |
Other | 0.10% | 0.20% | 0.70% |
Effective income tax rate on operations | (38.30%) | 23.80% | (5.50%) |
INCOME TAXES - THE TAX EFFECT O
INCOME TAXES - THE TAX EFFECT OF SIGNIFICANT TEMPORARY DIFFERENCES GIVING RISE TO DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Asset | ||
Commission and bonus accrual | $ 8 | $ 11 |
Employee benefit accruals | 58 | 56 |
Inventory | 25 | 15 |
Insurance premium accruals | 3 | 3 |
Miscellaneous accruals | 11 | 21 |
Other | 11 | |
Unrealized losses included in AOCI | 98 | 46 |
Lease right-of-use liability | 42 | 40 |
Product warranty accruals | 1 | 1 |
Foreign tax credit and R&D carryforward | 60 | 73 |
Restructuring and other cost accruals | 9 | 4 |
Sales and marketing accrual | 7 | 6 |
Tax loss carryforwards and other tax attributes | 280 | 269 |
Subtotal | 613 | 545 |
Valuation allowances | (287) | (288) |
Total | 326 | 257 |
Deferred Tax Liability | ||
Identifiable intangible assets | 613 | 631 |
Other | 2 | |
Property, plant and equipment | 50 | 50 |
Lease right-of-use asset | 42 | 39 |
Taxes on unremitted earnings of foreign subsidiaries | 6 | 3 |
Subtotal | 711 | 725 |
Total | $ 711 | $ 725 |
INCOME TAXES - THE DEFERRED TAX
INCOME TAXES - THE DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred income tax liabilities | $ 393 | $ 480 |
Other noncurrent assets, net | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred income tax assets | 8 | 12 |
Deferred income taxes | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred income tax liabilities | $ 393 | $ 480 |
INCOME TAXES - ADDITIONAL INFOR
INCOME TAXES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Tax credit carryforwards | $ 1,025 | ||
Tax loss carryforward | 1,278 | ||
Deferred tax assets, operating loss carryforward | 232 | ||
Deferred tax assets, tax attributes | 48 | ||
Translation Adjustment | 214 | ||
Change in valuation allowance for deferred tax asset | 16 | ||
Withholding taxes on certain undistributed earnings of foreign subsidiaries anticipated to be repatriated | 6 | ||
The total gross unrecognized tax benefits | 31 | ||
Unrecognized tax benefits, if recognized, would affect the effective income tax rate | 30 | ||
The total amount of accrued interest and penalties | 4 | $ 3 | |
Recognized income tax expense (benefits), interest and penalties | 2 | 2 | $ 1 |
Undistributed earnings of foreign subsidiaries | 1,807 | $ 1,575 | |
Foreign Tax Credits Expiring Future Years | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards | 57 | ||
Foreign Tax Credits Expiring Future Years | Tax Year 2024 | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards | 8 | ||
Foreign Tax Credits Expiring Future Years | Tax Year 2025 | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards | 39 | ||
Foreign Tax Credits Expiring Future Years | Tax Years 2027 through 2030 | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards | 10 | ||
Without Expiry Date | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards | 253 | ||
Foreign | |||
Income Taxes [Line Items] | |||
Tax credit valuation allowance | 57 | ||
Settlement with Taxing Authority | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits, if recognized, would affect the effective income tax rate | 5 | ||
Possible benefit of unrecognized tax benefits | $ 6 |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of period | $ 24 | $ 28 | $ 21 |
Gross change for prior-period positions | 1 | 0 | 8 |
Gross change for current year positions | 1 | 0 | 0 |
Decrease due to settlements and payments | 0 | (4) | 0 |
Decrease due to statute expirations | 0 | 0 | 0 |
Increase due to effect of foreign currency translation | 1 | 0 | 0 |
Decrease due to effect from foreign currency translation | 0 | 0 | (1) |
Unrecognized tax benefits at end of period | $ 27 | $ 24 | $ 28 |
BENEFIT PLANS - ADDITIONAL INFO
BENEFIT PLANS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution of first 1% of contribution | 100.00% | ||
Employer matching contribution of next 5% of contribution | 50.00% | ||
Employer maximum matching contribution | 3.50% | ||
Defined contribution plan, cost recognized | $ 36 | $ 35 | $ 35 |
Defined benefit plan, benefit obligation, period (increase) decrease for actuarial loss, discount rates | $ 31 | 68 | |
Defined benefit plan, benefit obligation, period (increase) decrease for actuarial loss, discount rates, demographic assumptions | 2 | ||
Defined benefit plan, benefit obligation, period (increase) decrease for actuarial loss, discount rates, plan experience different than anticipated | $ 13 | ||
Expected return on plan assets | 4.00% | ||
Percentage of total plan assets categorized as level 1 | 75.00% | 75.00% | |
Expected contributions to defined benefit pension plans in 2020 | $ 17 | ||
Minimum | Defined Benefit Plan, Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan asset of equity securities | 30.00% | ||
Minimum | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan asset of equity securities | 30.00% | ||
Minimum | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan asset of equity securities | 0.00% | ||
Minimum | Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan asset of equity securities | 0.00% | ||
Maximum | Defined Benefit Plan, Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan asset of equity securities | 65.00% | ||
Maximum | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan asset of equity securities | 65.00% | ||
Maximum | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan asset of equity securities | 15.00% | ||
Maximum | Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation for plan asset of equity securities | 25.00% | ||
Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
ESOP target contribution | 3.00% |
BENEFIT PLANS - RECONCILIATION
BENEFIT PLANS - RECONCILIATION OF CHANGES IN THE DEFINED BENEFIT AND POSTRETIREMENT HEALTHCARE PLANS' BENEFIT OBLIGATIONS, FIAR VALUE OF ASSETS AND FUNDED STATUS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Benefit Obligation | ||
Benefit obligation at beginning of year | $ 578 | $ 512 |
Service cost | 16 | 14 |
Interest cost | 5 | 8 |
Participant contributions | 4 | 4 |
Actuarial losses (gains) | 31 | 79 |
Effect of exchange rate changes | 59 | (7) |
Plan curtailments and settlements | (1) | (23) |
Benefits paid | (17) | (9) |
Benefit obligation at end of year | 675 | 578 |
Change in Plan Assets | ||
Fair value of plan assets at beginning of year | 185 | 173 |
Actual return on assets | 9 | 24 |
Plan settlements | 0 | (23) |
Effect of exchange rate changes | 17 | 2 |
Employer contributions | 15 | 14 |
Participant contributions | 4 | 4 |
Benefits paid | (17) | (9) |
Fair value of plan assets at end of year | 213 | 185 |
Funded status at end of year | $ (462) | $ (393) |
BENEFIT PLANS - PENSION BENEFIT
BENEFIT PLANS - PENSION BENEFITS AND OTHER POSTRETIREMENT BENEFITS RECOGNIZED IN THE ACCOMPANYING CONSOLIDATED BALANCE SHEETS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Deferred tax asset | $ 49 | $ 40 |
Total assets | 49 | 40 |
Current liabilities | (10) | (9) |
Other noncurrent liabilities | (452) | (384) |
Deferred tax liability | (1) | (1) |
Total liabilities | (463) | (394) |
Accumulated other comprehensive income | 139 | 113 |
Net amount recognized | $ (275) | $ (241) |
BENEFIT PLANS - AMOUNTS RECOGNI
BENEFIT PLANS - AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Net actuarial loss | $ 191 | $ 156 |
Net prior service cost | (4) | (4) |
Before tax AOCI | 187 | 152 |
Less: Deferred taxes | 48 | 39 |
Net of tax AOCI | $ 139 | $ 113 |
BENEFIT PLANS - PENSION PLANS W
BENEFIT PLANS - PENSION PLANS WITH AN ACCUMULATED BENEFIT OBLIGATION IN EXCESS OF PLAN ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 484 | $ 398 |
Accumulated benefit obligation | 455 | 371 |
Fair value of plan assets | $ 26 | $ 8 |
BENEFIT PLANS - COMPONENETS OF
BENEFIT PLANS - COMPONENETS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 16 | $ 14 | |
Interest cost | 5 | 8 | |
Net periodic benefit cost | 25 | 28 | $ 23 |
Cost of products sold | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 6 | 6 | 6 |
Selling, general and administrative expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 10 | 8 | 10 |
Other expense (income), net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 5 | 8 | 7 |
Expected return on plan assets | (4) | (5) | (5) |
Amortization of prior service credit | (1) | (1) | 0 |
Amortization of net actuarial loss | 9 | 6 | 6 |
Curtailment and settlement (gains) loss | $ 0 | $ 6 | $ (1) |
BENEFIT PLANS - OTHER CHANGES I
BENEFIT PLANS - OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Net actuarial loss (gain) | $ 43 | $ 53 | $ (6) |
Net prior service cost (credit) | 0 | 0 | (3) |
Amortization | (9) | (5) | (6) |
Total recognized in AOCI | 34 | 48 | (15) |
Total recognized in net periodic benefit cost and AOCI | $ 59 | $ 76 | $ 8 |
BENEFIT PLANS - WEIGHTED AVERAG
BENEFIT PLANS - WEIGHTED AVERAGE ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATIONS (Details) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | |||
Interest crediting rate | 1.30% | 1.30% | 1.50% |
Discount rate | 0.60% | 1.00% | 1.80% |
Rate of compensation increase | 2.40% | 2.50% | 2.50% |
BENEFIT PLANS - WEIGHTED AVER_2
BENEFIT PLANS - WEIGHTED AVERAGE ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST TREND RATES (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Interest crediting rate | 1.30% | 1.30% | 1.50% |
Discount rate | 1.00% | 1.80% | 1.60% |
Expected return on plan assets | 2.30% | 2.90% | 2.90% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
BENEFIT PLANS - FAIR VALUE OF P
BENEFIT PLANS - FAIR VALUE OF PENSION PLAN ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | $ 213 | $ 185 | $ 173 |
Cash and cash equivalents | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 16 | 13 | |
Equity securities, International | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 58 | 56 | |
Fixed income securities, Fixed rate bonds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 65 | 55 | |
Mutual funds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 20 | 18 | |
Common trusts | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 5 | 4 | |
Insurance contracts | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 37 | 30 | |
Hedge funds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | $ 12 | 9 | |
Equity | Mutual funds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of investments | 50.00% | ||
Equity | Common trusts | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of investments | 65.00% | ||
Fixed Income Investments | Mutual funds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of investments | 50.00% | ||
Fixed Income Investments | Common trusts | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Percentage of investments | 35.00% | ||
Fair Value, Inputs, Level 1, 2 and 3 | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 185 | ||
Level 1 | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | $ 159 | 142 | |
Level 1 | Cash and cash equivalents | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 16 | 13 | |
Level 1 | Equity securities, International | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 58 | 56 | |
Level 1 | Fixed income securities, Fixed rate bonds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 65 | 55 | |
Level 1 | Mutual funds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 20 | 18 | |
Level 1 | Common trusts | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 1 | Insurance contracts | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 1 | Hedge funds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 2 | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 5 | 4 | |
Level 2 | Cash and cash equivalents | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 2 | Equity securities, International | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 2 | Fixed income securities, Fixed rate bonds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 2 | Mutual funds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 2 | Common trusts | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 5 | 4 | |
Level 2 | Insurance contracts | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 2 | Hedge funds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 3 | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 49 | 39 | 35 |
Level 3 | Cash and cash equivalents | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 3 | Equity securities, International | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 3 | Fixed income securities, Fixed rate bonds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 3 | Mutual funds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 3 | Common trusts | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 0 | 0 | |
Level 3 | Insurance contracts | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | 37 | 30 | 28 |
Level 3 | Hedge funds | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Plan assets | $ 12 | $ 9 | $ 7 |
BENEFIT PLANS - RECONCILIATIO_2
BENEFIT PLANS - RECONCILIATION FOR THE PLAN ASSETS CATEGORIZED AS LEVEL 3 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Plan Assets. Level 3 [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 185 | $ 173 |
Actual return on plan assets: | ||
Effect of exchange rate changes | 17 | 2 |
Fair value of plan assets at end of year | 213 | 185 |
Insurance contracts | ||
Change in Plan Assets. Level 3 [Roll Forward] | ||
Fair value of plan assets at beginning of year | 30 | |
Actual return on plan assets: | ||
Fair value of plan assets at end of year | 37 | 30 |
Hedge funds | ||
Change in Plan Assets. Level 3 [Roll Forward] | ||
Fair value of plan assets at beginning of year | 9 | |
Actual return on plan assets: | ||
Fair value of plan assets at end of year | 12 | 9 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Change in Plan Assets. Level 3 [Roll Forward] | ||
Fair value of plan assets at beginning of year | 185 | |
Actual return on plan assets: | ||
Fair value of plan assets at end of year | 185 | |
Level 3 | ||
Change in Plan Assets. Level 3 [Roll Forward] | ||
Fair value of plan assets at beginning of year | 39 | 35 |
Actual return on plan assets: | ||
Relating to assets still held at the reporting date | 3 | 3 |
Purchases, sales and settlements, net | 2 | 2 |
Effect of exchange rate changes | 5 | (1) |
Fair value of plan assets at end of year | 49 | 39 |
Level 3 | Insurance contracts | ||
Change in Plan Assets. Level 3 [Roll Forward] | ||
Fair value of plan assets at beginning of year | 30 | 28 |
Actual return on plan assets: | ||
Relating to assets still held at the reporting date | 3 | 4 |
Purchases, sales and settlements, net | 0 | (1) |
Effect of exchange rate changes | 4 | (1) |
Fair value of plan assets at end of year | 37 | 30 |
Level 3 | Hedge funds | ||
Change in Plan Assets. Level 3 [Roll Forward] | ||
Fair value of plan assets at beginning of year | 9 | 7 |
Actual return on plan assets: | ||
Relating to assets still held at the reporting date | 0 | (1) |
Purchases, sales and settlements, net | 2 | 3 |
Effect of exchange rate changes | 1 | 0 |
Fair value of plan assets at end of year | $ 12 | $ 9 |
BENEFIT PLANS - ESTIMATED FUTUR
BENEFIT PLANS - ESTIMATED FUTURE BENEFIT PAYMENTS ON DEFINED BENEFIT PLAN (Details) $ in Millions | Dec. 31, 2020USD ($) |
Retirement Benefits [Abstract] | |
2021 | $ 22 |
2022 | 21 |
2023 | 21 |
2024 | 21 |
2025 | 23 |
2026-2030 | $ 121 |
RESTRUCTURING AND OTHER COSTS -
RESTRUCTURING AND OTHER COSTS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Aug. 06, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2020 | Nov. 30, 2018 |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs and asset impairment charges | $ 123 | $ 128 | $ 262 | |||
Restructuring and related cost, accelerated depreciation | 14 | 3 | 11 | |||
Severance costs | 23 | 37 | 25 | |||
Impairment of intangible assets | 39 | 9 | ||||
Other asset impairment charges | 8 | |||||
Fixed asset impairment | 3 | 33 | 0 | |||
Asset impairment charges | 179 | |||||
Restructuring incurred cost | 59 | |||||
Inventory write-down | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs and asset impairment charges | 31 | $ 20 | $ 13 | |||
Restructuring incurred cost | 31 | |||||
Restructuring and other costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected cost | $ 375 | $ 275 | ||||
Accelerated depreciation | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring incurred cost | 14 | |||||
Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring incurred cost | $ 9 | |||||
Traditional Orthodontics Business And Portions Of Laboratory Business | Technologies And Equipment And Consumables Segments | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected cost | $ 70 | |||||
Restructuring and related cost, number of positions eliminated, period percent | 4.00% | |||||
Traditional Orthodontics Business And Portions Of Laboratory Business | Technologies And Equipment And Consumables Segments | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected cost | $ 80 | |||||
Restructuring and related cost, number of positions eliminated, period percent | 5.00% |
RESTRUCTURING AND OTHER COSTS_2
RESTRUCTURING AND OTHER COSTS - TOTAL RESTRUCTURING COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs and asset impairment charges | $ 123 | $ 128 | $ 262 |
Restructuring and other costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs and asset impairment charges | 123 | 128 | 262 |
Restructuring and other costs | Cost of products sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs and asset impairment charges | 44 | 25 | 21 |
Restructuring and other costs | Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs and asset impairment charges | 2 | 23 | 15 |
Restructuring and other costs | Other Restructuring Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs and asset impairment charges | 77 | 81 | 226 |
Restructuring and other costs | Other income and expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs and asset impairment charges | $ 0 | $ (1) | $ 0 |
RESTRUCTURING AND OTHER COSTS_3
RESTRUCTURING AND OTHER COSTS - RESTRUCTURING ACCRUALS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve | ||
Beginning balance | $ 30 | $ 46 |
Provisions and adjustments | 36 | 42 |
Amounts applied | (23) | (49) |
Change in estimates | (9) | (9) |
Ending balance | 34 | 30 |
Severance | ||
Restructuring Reserve | ||
Beginning balance | 27 | 43 |
Provisions and adjustments | 32 | 36 |
Amounts applied | (21) | (43) |
Change in estimates | (9) | (9) |
Ending balance | 29 | 27 |
Severance | 2018 and Prior Plans | ||
Restructuring Reserve | ||
Beginning balance | 7 | |
Provisions and adjustments | 2 | |
Amounts applied | (4) | |
Change in estimates | 0 | |
Ending balance | 5 | 7 |
Severance | 2019 Plans | ||
Restructuring Reserve | ||
Beginning balance | 20 | 0 |
Provisions and adjustments | 2 | 31 |
Amounts applied | (8) | (9) |
Change in estimates | (7) | (2) |
Ending balance | 7 | 20 |
Severance | 2020 Plans | ||
Restructuring Reserve | ||
Beginning balance | 0 | |
Provisions and adjustments | 28 | |
Amounts applied | (9) | |
Change in estimates | (2) | |
Ending balance | 17 | 0 |
Severance | 2017 and Prior Plans | ||
Restructuring Reserve | ||
Beginning balance | 2 | 27 |
Provisions and adjustments | 4 | |
Amounts applied | (22) | |
Change in estimates | (7) | |
Ending balance | 2 | |
Severance | 2018 Plans | ||
Restructuring Reserve | ||
Beginning balance | 5 | 16 |
Provisions and adjustments | 1 | |
Amounts applied | (12) | |
Change in estimates | 0 | |
Ending balance | 5 | |
Other Restructuring Costs | ||
Restructuring Reserve | ||
Beginning balance | 3 | 3 |
Provisions and adjustments | 4 | 6 |
Amounts applied | (2) | (6) |
Ending balance | 5 | 3 |
Other Restructuring Costs | 2018 and Prior Plans | ||
Restructuring Reserve | ||
Beginning balance | 3 | |
Provisions and adjustments | 0 | |
Amounts applied | 0 | |
Ending balance | 3 | 3 |
Other Restructuring Costs | 2019 Plans | ||
Restructuring Reserve | ||
Beginning balance | 0 | 0 |
Provisions and adjustments | 1 | 3 |
Amounts applied | (1) | (3) |
Ending balance | 0 | 0 |
Other Restructuring Costs | 2020 Plans | ||
Restructuring Reserve | ||
Beginning balance | 0 | |
Provisions and adjustments | 3 | |
Amounts applied | (1) | |
Ending balance | 2 | 0 |
Other Restructuring Costs | 2017 and Prior Plans | ||
Restructuring Reserve | ||
Beginning balance | 3 | 3 |
Provisions and adjustments | 2 | |
Amounts applied | (2) | |
Ending balance | 3 | |
Other Restructuring Costs | 2018 Plans | ||
Restructuring Reserve | ||
Beginning balance | $ 0 | 0 |
Provisions and adjustments | 1 | |
Amounts applied | (1) | |
Ending balance | $ 0 |
RESTRUCTURING AND OTHER COSTS_4
RESTRUCTURING AND OTHER COSTS - PROVISIONS AND ADJUSTMENTS AND AMOUNTS APPLIED FOR ALL PLANS BY SEGMENT (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve | ||
Beginning balance | $ 30 | $ 46 |
Provisions and adjustments | 36 | 42 |
Amounts applied | (23) | (49) |
Change in estimates | (9) | (9) |
Ending balance | 34 | 30 |
Operating Segments | Technologies & Equipment | ||
Restructuring Reserve | ||
Beginning balance | 19 | 33 |
Provisions and adjustments | 16 | 24 |
Amounts applied | (12) | (33) |
Change in estimates | (7) | (5) |
Ending balance | 16 | 19 |
Operating Segments | Consumables | ||
Restructuring Reserve | ||
Beginning balance | 11 | 13 |
Provisions and adjustments | 16 | 17 |
Amounts applied | (8) | (15) |
Change in estimates | (2) | (4) |
Ending balance | 17 | 11 |
All Other | ||
Restructuring Reserve | ||
Beginning balance | 0 | 0 |
Provisions and adjustments | 4 | 1 |
Amounts applied | (3) | (1) |
Change in estimates | 0 | 0 |
Ending balance | $ 1 | $ 0 |
FINANCIAL INSTRUMENTS AND DER_3
FINANCIAL INSTRUMENTS AND DERIVATIVES - SUMMARY OF DERIVATIVE INSTRUMENTS (Details) $ in Millions | Dec. 31, 2020USD ($) |
Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Aggregate Notional Amount | $ 276 |
Aggregate Notional Amount Maturing within 12 Months | 276 |
Not Designated as Hedging Instrument | Foreign exchange forward contracts | |
Derivative [Line Items] | |
Aggregate Notional Amount | 276 |
Aggregate Notional Amount Maturing within 12 Months | 276 |
Cash Flow Hedges | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Aggregate Notional Amount | 369 |
Aggregate Notional Amount Maturing within 12 Months | 281 |
Cash Flow Hedges | Designated as Hedging Instrument | Foreign exchange forward contracts | |
Derivative [Line Items] | |
Aggregate Notional Amount | 369 |
Aggregate Notional Amount Maturing within 12 Months | 281 |
Hedges of Net Investments | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Aggregate Notional Amount | 322 |
Aggregate Notional Amount Maturing within 12 Months | 322 |
Hedges of Net Investments | Designated as Hedging Instrument | Cross currency basis swaps | |
Derivative [Line Items] | |
Aggregate Notional Amount | 322 |
Aggregate Notional Amount Maturing within 12 Months | 322 |
Fair Value Hedges | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Aggregate Notional Amount | 63 |
Aggregate Notional Amount Maturing within 12 Months | 44 |
Fair Value Hedges | Designated as Hedging Instrument | Foreign exchange forward contracts | |
Derivative [Line Items] | |
Aggregate Notional Amount | 63 |
Aggregate Notional Amount Maturing within 12 Months | $ 44 |
FINANCIAL INSTRUMENTS AND DER_4
FINANCIAL INSTRUMENTS AND DERIVATIVES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | May 26, 2020 | Apr. 07, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 11, 2019 |
Derivative [Line Items] | ||||||
Effective portion reclassified from AOCI into income (expense) | $ 48 | |||||
Senior Unsecured Notes Maturing June 1, 2030 | Senior Notes | ||||||
Derivative [Line Items] | ||||||
Debt instrument face amount | $ 750 | |||||
Cash Flow Hedges | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 369 | |||||
Gain (Loss) in AOCI | (18) | $ (17) | $ 5 | |||
Effective portion reclassified from AOCI into income (expense) | $ (2) | $ (1) | $ (11) | |||
Foreign exchange forward contracts | Cash Flow Hedges | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Debt instrument, term | 18 months | |||||
Notional amount | $ 369 | |||||
Treasury Lock | Cash Flow Hedges | ||||||
Derivative [Line Items] | ||||||
Debt instrument, term | 10 years | |||||
Repayments of debt | $ 31 | |||||
Notional amount | $ 150 | |||||
Long-term debt, term | 10 years | |||||
Treasury Lock | Cash Flow Hedges | Senior Unsecured Notes Maturing June 1, 2030 | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 150 | |||||
Cross currency basis swaps | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) in AOCI | $ (3) |
FINANCIAL INSTRUMENTS AND DER_5
FINANCIAL INSTRUMENTS AND DERIVATIVES - DERIVATIVE INSTRUMENTS - GAIN (LOSS) RECORDED IN AOCI IN THE CONSOLIDATED BALANCE SHEETS (Details) - USD ($) $ in Millions | Apr. 07, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective Portion Reclassified from AOCI into Income (Expense) | $ 48 | |||
Designated as Hedging Instrument | Cross currency basis swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in AOCI | $ (3) | |||
Designated as Hedging Instrument | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in AOCI | (18) | $ (17) | $ 5 | |
Effective Portion Reclassified from AOCI into Income (Expense) | (2) | (1) | (11) | |
Ineffective Portion Recognized in Income (Expense) | 4 | 2 | 1 | |
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | |
Designated as Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in AOCI | (16) | (11) | 0 | |
Effective Portion Reclassified from AOCI into Income (Expense) | (4) | (2) | (2) | |
Ineffective Portion Recognized in Income (Expense) | 0 | 0 | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | |
Designated as Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other expense (income), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective Portion Reclassified from AOCI into Income (Expense) | 0 | |||
Ineffective Portion Recognized in Income (Expense) | 1 | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | |||
Designated as Hedging Instrument | Cash Flow Hedges | Foreign exchange forward contracts | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in AOCI | (2) | (6) | 5 | |
Effective Portion Reclassified from AOCI into Income (Expense) | 2 | 1 | (9) | |
Ineffective Portion Recognized in Income (Expense) | 4 | 2 | 0 | |
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | |
Designated as Hedging Instrument | Hedges of Net Investments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in AOCI | (20) | 18 | 36 | |
Effective Portion Reclassified from AOCI into Income (Expense) | 0 | 0 | (3) | |
Ineffective Portion Recognized in Income (Expense) | 6 | 22 | 16 | |
Derivative, Gain (Loss) on Derivative, Net | 9 | 8 | 7 | |
Designated as Hedging Instrument | Hedges of Net Investments | Cross currency basis swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in AOCI | (26) | 9 | 15 | |
Effective Portion Reclassified from AOCI into Income (Expense) | 0 | 0 | 0 | |
Ineffective Portion Recognized in Income (Expense) | 0 | 0 | 0 | |
Derivative, Gain (Loss) on Derivative, Net | 9 | 8 | 7 | |
Designated as Hedging Instrument | Hedges of Net Investments | Cross currency basis swaps | Other expense (income), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective Portion Reclassified from AOCI into Income (Expense) | (3) | |||
Ineffective Portion Recognized in Income (Expense) | 0 | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | |||
Designated as Hedging Instrument | Hedges of Net Investments | Foreign exchange forward contracts | Other expense (income), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in AOCI | 6 | 9 | 21 | |
Effective Portion Reclassified from AOCI into Income (Expense) | 0 | 0 | 0 | |
Ineffective Portion Recognized in Income (Expense) | 6 | 22 | 16 | |
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | |
Designated as Hedging Instrument | Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in AOCI | (3) | 3 | ||
Effective Portion Reclassified from AOCI into Income (Expense) | 0 | 0 | ||
Ineffective Portion Recognized in Income (Expense) | 3 | 3 | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | ||
Designated as Hedging Instrument | Fair Value Hedges | Foreign exchange forward contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) in AOCI | (3) | 3 | ||
Effective Portion Reclassified from AOCI into Income (Expense) | 0 | 0 | ||
Ineffective Portion Recognized in Income (Expense) | 3 | 3 | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | ||
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 7 | (3) | (6) | |
Not Designated as Hedging Instrument | Foreign exchange forward contracts | Other expense (income), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 7 | $ (3) | $ (6) |
FINANCIAL INSTRUMENTS AND DER_6
FINANCIAL INSTRUMENTS AND DERIVATIVES - BALANCE SHEET ALLOCATION (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | $ 9 | $ 46 |
Gross liability amount recognized for derivative instruments designated as hedges | 35 | 14 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 11 | |
Cross currency basis swaps | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 7 | |
Gross liability amount recognized for derivative instruments designated as hedges | 20 | |
Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 5 | 27 |
Gross asset amount recognized for derivative instruments not designated as hedges | 3 | 2 |
Prepaid Expenses and Other Current Assets | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 5 | 27 |
Gross asset amount recognized for derivative instruments not designated as hedges | 3 | 2 |
Prepaid Expenses and Other Current Assets | Interest rate swaps | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 0 | |
Prepaid Expenses and Other Current Assets | Cross currency basis swaps | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 0 | 0 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 2 | 18 |
Gross asset amount recognized for derivative instruments not designated as hedges | 0 | 0 |
Other Noncurrent Assets | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 2 | 11 |
Gross asset amount recognized for derivative instruments not designated as hedges | 0 | 0 |
Other Noncurrent Assets | Interest rate swaps | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 0 | |
Other Noncurrent Assets | Cross currency basis swaps | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 0 | 7 |
Accrued Liabilities | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 30 | 1 |
Gross liability amount recognized for derivative instruments not designated as hedges | 2 | 2 |
Accrued Liabilities | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 10 | 1 |
Gross liability amount recognized for derivative instruments not designated as hedges | 2 | 2 |
Accrued Liabilities | Interest rate swaps | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 0 | |
Accrued Liabilities | Cross currency basis swaps | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 20 | 0 |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 3 | 13 |
Gross liability amount recognized for derivative instruments not designated as hedges | 0 | 0 |
Other Noncurrent Liabilities | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 3 | 2 |
Gross liability amount recognized for derivative instruments not designated as hedges | 0 | 0 |
Other Noncurrent Liabilities | Interest rate swaps | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 11 | |
Other Noncurrent Liabilities | Cross currency basis swaps | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS AND DER_7
FINANCIAL INSTRUMENTS AND DERIVATIVES - BALANCE SHEET OFFSETTING (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Gross Amounts Recognized | $ 9 | $ 46 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 9 | 46 |
Gross amounts not offset in the consolidated balance sheets, financial instruments | (9) | (9) |
Gross amounts not offset in the consolidated balance sheets, cash collateral received/pledged | 0 | 0 |
Net Amount | 0 | 37 |
Liabilities | ||
Gross Amounts Recognized | 35 | 14 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 35 | 14 |
Gross amounts not offset in the consolidated balance sheets, financial instruments | (7) | (9) |
Gross amounts not offset in the consolidated balance sheets, cash collateral received/pledged | 0 | 0 |
Net Amount | 28 | 5 |
Foreign exchange forward contracts | ||
Assets | ||
Gross Amounts Recognized | 9 | 39 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 9 | 39 |
Gross amounts not offset in the consolidated balance sheets, financial instruments | (9) | (8) |
Gross amounts not offset in the consolidated balance sheets, cash collateral received/pledged | 0 | 0 |
Net Amount | 0 | 31 |
Liabilities | ||
Gross Amounts Recognized | 15 | 3 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 15 | 3 |
Gross amounts not offset in the consolidated balance sheets, financial instruments | 0 | (3) |
Gross amounts not offset in the consolidated balance sheets, cash collateral received/pledged | 0 | 0 |
Net Amount | 15 | 0 |
Cross currency basis swaps | ||
Assets | ||
Gross Amounts Recognized | 7 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts Presented in the Consolidated Balance Sheets | 7 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments | (1) | |
Gross amounts not offset in the consolidated balance sheets, cash collateral received/pledged | 0 | |
Net Amount | 6 | |
Liabilities | ||
Gross Amounts Recognized | 20 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts Presented in the Consolidated Balance Sheets | 20 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments | (7) | |
Gross amounts not offset in the consolidated balance sheets, cash collateral received/pledged | 0 | |
Net Amount | $ 13 | |
Interest rate swaps | ||
Liabilities | ||
Gross Amounts Recognized | 11 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts Presented in the Consolidated Balance Sheets | 11 | |
Gross amounts not offset in the consolidated balance sheets, financial instruments | (6) | |
Gross amounts not offset in the consolidated balance sheets, cash collateral received/pledged | 0 | |
Net Amount | $ 5 |
FAIR VALUE MEASUREMENT - ADDITI
FAIR VALUE MEASUREMENT - ADDITIONAL INFORMATION (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Floating rate senior term loan | $ 2,284,000,000 | $ 1,438,000,000 |
Senior Notes | Senior Notes, $450 Million | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Debt instrument face amount | $ 450,000,000 | |
Debt, fixed rate | 4.10% | |
Senior Notes | Fixed rate senior notes 750 million due June 2030 | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Floating rate senior term loan | $ 750,000,000 | $ 0 |
Debt instrument face amount | $ 750,000,000 | |
Debt, fixed rate | 3.30% | 0.00% |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Floating rate senior term loan | $ 2,509,000,000 | $ 1,441,000,000 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Floating rate senior term loan | $ 2,281,000,000 | $ 1,441,000,000 |
FAIR VALUE MEASUREMENT - FINANC
FAIR VALUE MEASUREMENT - FINANCIAL ASSETS AND LIABILITIES THAT ARE RECORDED AT FAIR VALUE AND CLASSIFIED BASED ON THE LOWEST LEVEL OF INPUT (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $ 10 | $ 47 |
Liabilities | 40 | 24 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 9 | 9 |
Reported in Other expense (income), net | 0 | 2 |
Payments | (4) | (2) |
Effect of exchange rate changes | 0 | 0 |
Ending balance | 5 | 9 |
Foreign exchange forward contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 10 | 40 |
Liabilities | 15 | 4 |
Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 20 | 11 |
Contingent considerations on acquisitions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 5 | 9 |
Cross currency basis swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 7 | |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 1 | Foreign exchange forward contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 1 | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 0 |
Level 1 | Contingent considerations on acquisitions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 0 |
Level 1 | Cross currency basis swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 10 | 47 |
Liabilities | 35 | 15 |
Level 2 | Foreign exchange forward contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 10 | 40 |
Liabilities | 15 | 4 |
Level 2 | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 20 | 11 |
Level 2 | Contingent considerations on acquisitions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 0 |
Level 2 | Cross currency basis swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 7 | |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 5 | 9 |
Level 3 | Foreign exchange forward contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Level 3 | Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 0 |
Level 3 | Contingent considerations on acquisitions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | $ 5 | 9 |
Level 3 | Cross currency basis swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - ADDITIONAL INFORMATION (Details) | Dec. 16, 2020USD ($) | Apr. 29, 2019stockholder | Jan. 11, 2018 | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Jun. 07, 2018reporting_unitdistributors |
Loss Contingencies [Line Items] | ||||||
Litigation settlement amount | $ 1,000,000 | |||||
Payments for legal settlements | $ 1,000,000 | |||||
Employment agreement terms, minimum period of employment | 8 years | |||||
Number of class action lawsuits | reporting_unit | 2 | |||||
Number of distributors | distributors | 3 | |||||
Number of plaintiffs | stockholder | 2 | |||||
Worthless stock deduction amount | $ 546,000,000 | |||||
IRS | Tax Year 2012 | ||||||
Loss Contingencies [Line Items] | ||||||
Liability (refund) from income tax examination | (5,000,000) | (5,000,000) | ||||
IRS | Tax Year 2013 | ||||||
Loss Contingencies [Line Items] | ||||||
Liability (refund) from income tax examination | $ 0 | 0 | ||||
IRS | Tax Year 2014 | ||||||
Loss Contingencies [Line Items] | ||||||
Penalties expense | 17,000,000 | |||||
Swedish Tax Agency | ||||||
Loss Contingencies [Line Items] | ||||||
Possible tax expense | $ 57,000,000 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Translation Adjustment | $ 214 | ||
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 29 | $ 25 | $ 22 |
Additions - Charged (Credited) To Costs And Expenses | 1 | 10 | 6 |
Additions - Charged to Other Accounts | (2) | 1 | 1 |
Write-offs Net of Recoveries | (12) | (6) | (2) |
Translation Adjustment | 2 | (1) | (2) |
Balance at End of Period | 18 | 29 | 25 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 288 | 288 | 3,015 |
Additions - Charged (Credited) To Costs And Expenses | (5) | 8 | 108 |
Additions - Charged to Other Accounts | 0 | 0 | 0 |
Write-offs Net of Recoveries | (2) | (6) | (2,769) |
Translation Adjustment | 6 | (2) | (66) |
Balance at End of Period | $ 287 | $ 288 | $ 288 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions, kr in Billions | Jan. 21, 2021USD ($) | Jan. 06, 2021SEK (kr) |
Foreign exchange forward contracts | ||
Subsequent Event [Line Items] | ||
Aggregate Notional Amount | kr | kr 1.3 | |
Privately Owned Producer And Distributor Of Specialized Regenerative Dental Material | ||
Subsequent Event [Line Items] | ||
Total acquisition consideration | $ 95 | |
Additional consideration based on earn out | $ 10 | |
Percentage of voting interest acquired | 100.00% |