Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 $.01 per share | |
Trading Symbol | XRAY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business Entity | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 211,860,391 | |
Entity Central Index Key | 0000818479 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 947 | $ 947 | $ 2,953 | $ 2,939 |
Cost of products sold | 452 | 439 | 1,389 | 1,329 |
Gross profit | 495 | 508 | 1,564 | 1,610 |
Selling, general, and administrative expenses | 372 | 401 | 1,204 | 1,187 |
Research and development expenses | 46 | 41 | 141 | 131 |
Goodwill and intangible asset impairments | 307 | 1,281 | 307 | 1,281 |
Restructuring and other costs | 6 | 3 | 70 | 13 |
Operating loss | (236) | (1,218) | (158) | (1,002) |
Other income and expenses: | ||||
Interest expense, net | 18 | 14 | 58 | 41 |
Other (income) expense, net | (4) | 9 | 16 | 20 |
Loss before income taxes | (250) | (1,241) | (232) | (1,063) |
Provision (benefit) for income taxes | 16 | (164) | (28) | (128) |
Net loss | (266) | (1,077) | (204) | (935) |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | (5) | 0 |
Net loss attributable to Dentsply Sirona | $ (266) | $ (1,077) | $ (199) | $ (935) |
Net loss per common share attributable to Dentsply Sirona: | ||||
Basic (in dollars per share) | $ (1.25) | $ (5.01) | $ (0.94) | $ (4.34) |
Diluted (in dollars per share) | $ (1.25) | $ (5.01) | $ (0.94) | $ (4.34) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 211.8 | 214.9 | 212.7 | 215.6 |
Diluted (in shares) | 211.8 | 214.9 | 212.7 | 215.6 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (266) | $ (1,077) | $ (204) | $ (935) |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation loss | (64) | (148) | (49) | (310) |
Net gain on derivative financial instruments | 27 | 22 | 20 | 54 |
Pension liability gain | 0 | 1 | 0 | 4 |
Total other comprehensive loss, net of tax | (37) | (125) | (29) | (252) |
Total comprehensive loss | (303) | (1,202) | (233) | (1,187) |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | 0 | (5) | 0 |
Total comprehensive loss attributable to Dentsply Sirona | $ (303) | $ (1,202) | $ (228) | $ (1,187) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 309 | $ 365 |
Accounts and notes receivables-trade, net | 649 | 632 |
Inventories, net | 651 | 627 |
Prepaid expenses and other current assets | 304 | 269 |
Total Current Assets | 1,913 | 1,893 |
Property, plant, and equipment, net | 753 | 761 |
Operating lease right-of-use assets, net | 182 | 200 |
Identifiable intangible assets, net | 1,711 | 1,903 |
Goodwill | 2,374 | 2,688 |
Other noncurrent assets | 268 | 198 |
Total Assets | 7,201 | 7,643 |
Current Liabilities: | ||
Accounts payable | 262 | 279 |
Accrued liabilities | 732 | 727 |
Income taxes payable | 37 | 46 |
Notes payable and current portion of long-term debt | 187 | 118 |
Total Current Liabilities | 1,218 | 1,170 |
Long-term debt | 1,803 | 1,826 |
Operating lease liabilities | 133 | 149 |
Deferred income taxes | 249 | 287 |
Other noncurrent liabilities | 427 | 399 |
Total Liabilities | 3,830 | 3,831 |
Commitments and contingencies (Note 14) | ||
Equity: | ||
Preferred stock, $1.00 par value; 0.25 million shares authorized; no shares issued | 0 | 0 |
Common stock, $0.01 par value; 400.0 million shares authorized, and 264.5 million shares issued at September 30, 2023 and December 31, 2022, 211.7 million and 215.3 million shares outstanding at September 30, 2023 and December 31, 2022 | 3 | 3 |
Capital in excess of par value | 6,645 | 6,629 |
Retained earnings | 167 | 456 |
Accumulated other comprehensive loss | (657) | (628) |
Treasury stock, at cost, 52.7 million and 49.3 million shares at September 30, 2023 and December 31, 2022, respectively | (2,783) | (2,649) |
Total Dentsply Sirona Equity | 3,375 | 3,811 |
Noncontrolling interests | (4) | 1 |
Total Equity | 3,371 | 3,812 |
Total Liabilities and Equity | $ 7,201 | $ 7,643 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Equity: | ||
Preferred stock, par value (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 value (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) | 211,800,000 | 215,300,000 |
Treasury stock, shares (in shares) | 52,700,000 | 49,300,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Total Dentsply Sirona Equity | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2021 | $ 4,997 | $ 4,996 | $ 3 | $ 6,606 | $ 1,514 | $ (592) | $ (2,535) | $ 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 69 | 69 | 69 | |||||
Other comprehensive income (loss) | (37) | (37) | (37) | |||||
Exercise of stock options | 5 | 5 | 1 | 4 | ||||
Stock based compensation expense | 11 | 11 | 11 | |||||
Funding of employee stock purchase plan | 2 | 2 | 1 | 1 | ||||
Accelerated share repurchase | (150) | (150) | (30) | (120) | ||||
Restricted stock unit distributions | (6) | (6) | (16) | 10 | ||||
Cash dividends | (27) | (27) | (27) | |||||
Ending Balance at Mar. 31, 2022 | 4,864 | 4,863 | 3 | 6,573 | 1,556 | (629) | (2,640) | 1 |
Beginning Balance at Dec. 31, 2021 | 4,997 | 4,996 | 3 | 6,606 | 1,514 | (592) | (2,535) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (935) | |||||||
Other comprehensive income (loss) | (252) | |||||||
Ending Balance at Sep. 30, 2022 | 3,614 | 3,613 | 3 | 6,619 | 498 | (844) | (2,663) | 1 |
Beginning Balance at Mar. 31, 2022 | 4,864 | 4,863 | 3 | 6,573 | 1,556 | (629) | (2,640) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 73 | 73 | 73 | |||||
Other comprehensive income (loss) | (90) | (90) | (90) | |||||
Exercise of stock options | 2 | 2 | 2 | |||||
Stock based compensation expense | 16 | 16 | 16 | |||||
Funding of employee stock purchase plan | 1 | 1 | 1 | |||||
Accelerated share repurchase | 0 | 0 | 30 | (30) | ||||
Restricted stock unit distributions | (2) | (2) | (3) | 1 | ||||
Restricted stock unit dividends | 0 | 1 | (1) | |||||
Cash dividends | (26) | (26) | (26) | |||||
Ending Balance at Jun. 30, 2022 | 4,838 | 4,837 | 3 | 6,617 | 1,602 | (719) | (2,666) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (1,077) | (1,077) | (1,077) | |||||
Other comprehensive income (loss) | (125) | (125) | (125) | |||||
Stock based compensation expense | 3 | 3 | 3 | |||||
Funding of employee stock purchase plan | 3 | 3 | 3 | |||||
Restricted stock unit distributions | (1) | (1) | (1) | |||||
Cash dividends | (27) | (27) | (27) | |||||
Ending Balance at Sep. 30, 2022 | 3,614 | 3,613 | 3 | 6,619 | 498 | (844) | (2,663) | 1 |
Beginning Balance at Dec. 31, 2022 | 3,812 | 3,811 | 3 | 6,629 | 456 | (628) | (2,649) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (23) | (19) | (19) | (4) | ||||
Other comprehensive income (loss) | 14 | 14 | 14 | |||||
Stock based compensation expense | 17 | 17 | 17 | |||||
Funding of employee stock purchase plan | 3 | 3 | 3 | |||||
Accelerated share repurchase | (151) | (151) | (30) | (121) | ||||
Restricted stock unit distributions | (4) | (4) | (12) | 8 | ||||
Cash dividends | (30) | (30) | (30) | |||||
Ending Balance at Mar. 31, 2023 | 3,638 | 3,641 | 3 | 6,604 | 407 | (614) | (2,759) | (3) |
Beginning Balance at Dec. 31, 2022 | 3,812 | 3,811 | 3 | 6,629 | 456 | (628) | (2,649) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (204) | |||||||
Other comprehensive income (loss) | (29) | |||||||
Ending Balance at Sep. 30, 2023 | 3,371 | 3,375 | 3 | 6,645 | 167 | (657) | (2,783) | (4) |
Beginning Balance at Mar. 31, 2023 | 3,638 | 3,641 | 3 | 6,604 | 407 | (614) | (2,759) | (3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 85 | 86 | 86 | (1) | ||||
Other comprehensive income (loss) | (6) | (6) | (6) | |||||
Exercise of stock options | 1 | 1 | 1 | |||||
Stock based compensation expense | 14 | 14 | 14 | |||||
Accelerated share repurchase | 0 | 0 | 30 | (30) | ||||
Restricted stock unit dividends | (1) | (1) | (1) | |||||
Cash dividends | (29) | (29) | (29) | |||||
Ending Balance at Jun. 30, 2023 | 3,702 | 3,706 | 3 | 6,648 | 463 | (620) | (2,788) | (4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (266) | (266) | (266) | |||||
Other comprehensive income (loss) | (37) | (37) | (37) | |||||
Stock based compensation expense | 2 | 2 | 2 | |||||
Funding of employee stock purchase plan | 2 | 2 | (1) | 3 | ||||
Restricted stock unit distributions | (2) | (2) | (4) | 2 | ||||
Cash dividends | (30) | (30) | (30) | |||||
Ending Balance at Sep. 30, 2023 | $ 3,371 | $ 3,375 | $ 3 | $ 6,645 | $ 167 | $ (657) | $ (2,783) | $ (4) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividends (in dollars per share) | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.125 | $ 0.125 | $ 0.125 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (204) | $ (935) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 99 | 90 |
Amortization of intangible assets | 159 | 159 |
Goodwill impairment | 291 | 1,187 |
Indefinite-lived intangible asset impairment | 16 | 94 |
Deferred income taxes | (107) | (220) |
Stock based compensation expense | 33 | 47 |
Restructuring and other costs | 39 | (5) |
Other non-cash expense | 29 | 38 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts and notes receivable-trade, net | (31) | 43 |
Inventories, net | (45) | (140) |
Prepaid expenses and other current assets | (52) | (46) |
Other noncurrent assets | (4) | (13) |
Accounts payable | (10) | 40 |
Accrued liabilities | (23) | 3 |
Income taxes | (6) | 41 |
Other noncurrent liabilities | 33 | (8) |
Net cash provided by operating activities | 217 | 375 |
Cash flows from investing activities: | ||
Capital expenditures | (109) | (117) |
Cash received on derivative contracts | 39 | 10 |
Other investing activities | 1 | (2) |
Net cash used in investing activities | (69) | (109) |
Cash flows from financing activities: | ||
Cash paid for treasury stock | (150) | (150) |
Proceeds on short-term borrowings | 68 | 64 |
Cash dividends paid | (86) | (78) |
Proceeds from long-term borrowings, net of deferred financing costs | 2 | 7 |
Repayments on long-term borrowings | (6) | (2) |
Proceeds from exercised stock options | 0 | 6 |
Other financing activities, net | (7) | (15) |
Net cash used in financing activities | (179) | (168) |
Effect of exchange rate changes on cash and cash equivalents | (25) | (19) |
Net (decrease) increase in cash and cash equivalents | (56) | 79 |
Cash and cash equivalents at beginning of period | 365 | 339 |
Cash and cash equivalents at end of period | $ 309 | $ 418 |
BUSINESS AND BASIS OF PRESENTAT
BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
BUSINESS AND BASIS OF PRESENTATION | BUSINESS AND BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Results for interim periods should not be considered indicative of results for a full year. These financial statements and related notes contain the accounts of DENTSPLY SIRONA Inc. and subsidiaries (“Dentsply Sirona” or the “Company”) on a consolidated basis and should be read in conjunction with the consolidated financial statements and notes included in the Company’s most recent Form 10-K/A for the year ended December 31, 2022, filed with the Securities and Exchange Commission on August 7, 2023 (the "2022 Form 10-K/A"). Effective April 1, 2023 the Company realigned its reporting structure due to certain organizational changes. As a result, the Company's reportable segments changed from Technology & Equipment and Consumables to (i) Connected Technology Solutions, (ii) Essential Dental Solutions, (iii) Orthodontic and Implant Solutions, and (iv) Wellspect Healthcare. All comparative segment information and disaggregated revenue information has been recast to reflect the Company's new segment structure and current period presentation. Refer to Note 6, Segment Information, for further discussion on this change. Use of Estimates The preparation of financial statements in conformity with 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 Net sales and expense during the reporting period. Actual results could differ materially from those estimates. Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers , as if it had originated the contracts. The new standard requirement to measure contract assets and contract liabilities acquired in a business combination at fair value differs from the current approach. The amendments in this update were effective for the fiscal years and interim periods ending after December 31, 2022. The Company adopted this accounting standard on January 1, 2023. The adoption of this standard did not materially impact the Company's consolidated financial statements or related disclosures. In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which was subsequently amended by ASU No. 2021-01 “Reference Rate Reform (Topic 848): Scope” in January 2021 and by ASU No. 2022-06 “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” in December 2022. The new standard provides optional expedients and exceptions to contracts, hedging relationships, and other transactions that reference the London Interbank Offer Rate or another rate expected to be discontinued due to the reference rate reform. This standard was effective upon issuance. The adoption of this standard did not materially impact the Company's consolidated financial statements or related disclosures. Seasonality Our business is subject to quarterly fluctuations in demand due to price changes, marketing and promotional programs, management of inventory levels by distributors and other customers, and implementation of strategic initiatives which may impact sales levels in any given period. Demand can also fluctuate based on the timing of dental tradeshows, new product introductions, and variability in dental patient traffic, which can be exacerbated by seasonal or severe weather patterns, other demographic disruptions, or macroeconomic conditions. Some dental practices in certain countries may also delay purchasing equipment and restocking consumables until year-end due to tax or other financial planning reasons which can impact the timing of our consolidated net sales, net income and cash flows. Sales for the industry and the Company are generally strongest in the second and fourth quarters and weaker in the first and third quarters, due to the effects of the items noted above and due to the impact of holidays and vacations, particularly throughout Europe. Because of the seasonal nature of our business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenues are derived primarily from the sale of dental equipment and dental and healthcare consumable products. Revenues are measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Net sales disaggregated by product category for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Equipment & Instruments $ 148 $ 163 $ 480 $ 498 CAD/CAM 128 123 370 377 Connected Technology Solutions $ 276 $ 286 $ 850 $ 875 Essential Dental Solutions $ 347 $ 348 $ 1,110 $ 1,084 Orthodontics $ 83 $ 76 $ 255 $ 220 Implants & Prosthetics 169 171 526 552 Orthodontic and Implant Solutions $ 252 $ 247 $ 781 $ 772 Wellspect Healthcare $ 72 $ 66 $ 212 $ 208 Total net sales $ 947 $ 947 $ 2,953 $ 2,939 Net sales disaggregated by geographic region for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 United States $ 356 $ 357 $ 1,069 $ 1,023 Europe 354 358 1,153 1,183 Rest of World 237 232 731 733 Total net sales $ 947 $ 947 $ 2,953 $ 2,939 Contract Assets and Liabilities The Company does not typically have contract assets in the normal course of its business. Contract liabilities, which represent billings in excess of revenue recognized, are primarily related to advanced billings for customer aligner treatment where the performance obligation has not yet been fulfilled. The Company had deferred revenue of $87 million and $54 million recorded in Accrued liabilities and Other noncurrent liabilities, respectively, in the Consolidated Balance Sheets at September 30, 2023. The Company had deferred revenue of $91 million and $27 million recorded in Accrued liabilities and Other noncurrent liabilities, respectively, in the Consolidated Balance Sheets at December 31, 2022. The Company recognized approximately $59 million of revenue during the current year which was previously deferred as of December 31, 2022. The Company expects to recognize a majority of the remaining deferred revenue within the next twelve months. Allowance for Doubtful Accounts Accounts and notes receivables-trade, net are stated net of allowances for doubtful accounts and trade discounts, which were $13 million at September 30, 2023 and $14 million at December 31, 2022. For the three and nine months ended September 30, 2023 and 2022, changes to the provision for doubtful accounts including write-offs of accounts receivable that were previously reserved were insignificant. Changes to this provision are included in Selling, general, and administrative expenses in the Consolidated Statements of Operations. |
STOCK COMPENSATION
STOCK COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION The amounts of stock compensation expense recorded in the Company's Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Cost of products sold $ 1 $ 1 $ 3 $ 2 Selling, general, and administrative expense 1 12 25 43 Research and development expense 1 1 3 2 Restructuring and other costs (1) — 2 — Total stock based compensation expense $ 2 $ 14 $ 33 $ 47 Related deferred income tax benefit $ 2 $ 1 $ 5 $ 4 |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) Changes in Accumulated other comprehensive income (loss) ("AOCI"), net of tax, by component for the nine months ended September 30, 2023 and 2022 were as follows: (in millions) Foreign Currency Translation Gain (Loss) Gain (Loss) on Cash Flow Hedges Gain (Loss) on Net Investment and Fair Value Hedges Pension Total Balance, net of tax, at December 31, 2022 $ (522) $ (17) $ (73) $ (16) $ (628) Other comprehensive income (loss) before reclassifications and tax impact 6 (1) — — 5 Tax benefit 9 — — — 9 Other comprehensive income (loss), net of tax, before reclassifications 15 (1) — — 14 Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — — — Net increase (decrease) in other comprehensive income 15 (1) — — 14 Balance, net of tax, at March 31, 2023 $ (507) $ (18) $ (73) $ (16) $ (614) Other comprehensive loss before reclassifications and tax impact (3) — (11) — (14) Tax benefit 3 — 3 — 6 Other comprehensive loss, net of tax, before reclassifications — — (8) — (8) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 2 — — 2 Net increase (decrease) in other comprehensive income — 2 (8) — (6) Balance, net of tax, at June 30, 2023 $ (507) $ (16) $ (81) $ (16) $ (620) Other comprehensive (loss) income before reclassifications and tax impact (60) 1 33 — (26) Tax expense (4) — (8) — (12) Other comprehensive (loss) benefit, net of tax, before reclassifications (64) 1 25 — (38) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 1 — — 1 Net (decrease) increase in other comprehensive income (64) 2 25 — (37) Balance, net of tax, at September 30, 2023 $ (571) $ (14) $ (56) $ (16) $ (657) (in millions) Foreign Currency Translation Gain (Loss) Gain (Loss) on Cash Flow Hedges Gain (Loss) on Net Investment and Fair Value Hedges Pension Total Balance, net of tax, at December 31, 2021 $ (366) $ (16) $ (103) $ (107) $ (592) Other comprehensive (loss) income before reclassifications and tax impact (37) 3 9 — (25) Tax expense (11) — (1) — (12) Other comprehensive (loss) income, net of tax, before reclassifications (48) 3 8 — (37) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — (1) — 1 — Net (decrease) increase in other comprehensive income (48) 2 8 1 (37) Balance, net of tax, at March 31, 2022 $ (414) $ (14) $ (95) $ (106) $ (629) Other comprehensive (loss) income before reclassifications and tax impact (86) (3) 32 — (57) Tax expense (28) — (8) — (36) Other comprehensive (loss) income, net of tax, before reclassifications (114) (3) 24 — (93) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 1 — 2 3 Net (decrease) increase in other comprehensive income (114) (2) 24 2 (90) Balance, net of tax, at June 30, 2022 $ (528) $ (16) $ (71) $ (104) $ (719) Other comprehensive (loss) income before reclassifications and tax impact (120) 3 28 — (89) Tax expense (28) (1) (7) — (36) Other comprehensive (loss) income, net of tax, before reclassifications (148) 2 21 — (125) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — (1) — 1 — Net (decrease) increase in other comprehensive income (148) 1 21 1 (125) Balance, net of tax, at September 30, 2022 $ (676) $ (15) $ (50) $ (103) $ (844) At September 30, 2023 and December 31, 2022, the cumulative tax adjustments were $103 million and $100 million, respectively, primarily related to foreign currency translation adjustments. The cumulative foreign currency translation adjustments included translation losses of $497 million and $438 million at September 30, 2023 and December 31, 2022, respectively, and cumulative losses on loans designated as hedges of net investments of $74 million and $84 million, respectively. Reclassifications out of AOCI to the Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022 were not significant. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2023 and 2022 were as follows: Basic Earnings Per Common Share Three Months Ended Nine Months Ended (in millions, except per share amounts) 2023 2022 2023 2022 Net loss attributable to Dentsply Sirona $ (266) $ (1,077) $ (199) $ (935) Weighted average common shares outstanding 211.8 214.9 212.7 215.6 Loss per common share - basic $ (1.25) $ (5.01) $ (0.94) $ (4.34) Diluted Earnings Per Common Share Three Months Ended Nine Months Ended (in millions, except per share amounts) 2023 2022 2023 2022 Net loss attributable to Dentsply Sirona $ (266) $ (1,077) $ (199) $ (935) Weighted average common shares outstanding 211.8 214.9 212.7 215.6 Incremental weighted average shares from assumed exercise of dilutive options from stock-based compensation awards — — — — Total weighted average diluted shares outstanding 211.8 214.9 212.7 215.6 Loss per common share - diluted $ (1.25) $ (5.01) $ (0.94) $ (4.34) Weighted average shares excluded from diluted common shares outstanding due to reported net loss 1.1 0.3 1.1 0.5 Weighted average shares excluded from diluted common shares outstanding due to antidilutive nature 3.0 3.6 3.4 3.6 On July 28, 2021, the Board of Directors approved a share repurchase program, of up to $1.0 billion. Share repurchases may be made through open market purchases, Rule 10b5-1 plans, accelerated 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. At September 30, 2023, the Company had authorization to repurchase $590 million in shares of common stock remaining under the share repurchase program. On March 3, 2023, the Company entered into an Accelerated Share Repurchase Agreement ("ASR Agreement") with a financial institution to repurchase the Company's common stock. The Company repurchased shares under the ASR Agreement as part of the share repurchase program described above. During the nine months ended September 30, 2023, the Company repurchased approximately 3.1 million shares delivered during March 2023 at a volume-weighted average price of $38.74 representing $120 million of the total anticipated repurchase. In April 2023, an additional 0.8 million shares were delivered upon the final settlement of the ASR Agreement resulting in a total of 3.9 million shares repurchased under the agreement. (in millions, except per share amounts) Initial Delivery Final Settlement Agreement Date Amount Paid Shares Received Price per share Value of Shares as a % of Contract Value Settlement Date Total Shares Received Average Price per Share March 3, 2023 $ 150 3.1 $ 38.74 80 % April 28, 2023 3.9 $ 38.55 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Effective April 1, 2023 the Company realigned its reporting structure due to certain organizational changes. The Company has realigned its reportable segments to reflect changes in how the Company manages its operations, specifically the level at which its chief operating decision maker ("CODM") regularly reviews operating results and allocates resources. As a result, the reportable segments changed from Technology & Equipment and Consumables to (i) Connected Technology Solutions, (ii) Essential Dental Solutions, (iii) Orthodontic and Implant Solutions, and (iv) Wellspect Healthcare. Segment Descriptions A description of the products and services provided within each of the Company’s four reportable segments under the new structure is provided below. Connected Technology Solutions This segment is responsible for the design, manufacture and sales of the Company’s dental technology and equipment products. These products include the Equipment & Instruments and CAD/CAM product categories. Equipment & Instruments The Equipment & Instruments product category consists of basic and high-tech dental equipment such as imaging equipment, motorized dental handpieces, treatment centers, and other instruments for dental practitioners and specialists. Imaging equipment serves as the point of entry to the Company’s digital workflow offerings and consists of a broad range of diagnostic imaging systems for 2D or 3D, panoramic, and intra-oral applications, as well as cone-beam computed tomography systems (CBCT). Treatment centers comprise a broad range of products from basic dental chairs to sophisticated chair-based units with integrated diagnostic, hygienic and ergonomic functionalities, as well as specialist centers used in preventive treatment and for training purposes. This product group also includes other lab equipment such as amalgamators, mixing machines and porcelain furnaces. CAD/CAM Dental CAD/CAM technologies are products designed for dental offices to support numerous digital dental procedures including dental restorations. This product category includes a full-chairside economical restoration of esthetic ceramic dentistry offering called CEREC, as well as stand-alone CAD/CAM, digital impressions ("DI") intra-oral scanners, 3-D printer mills, and certain software and services. A full-chairside offering enables dentists to practice same day or single visit dentistry. Essential Dental Solutions This segment is responsible for the design, manufacture and sales of the Company's value-added endodontic, restorative, and preventive consumable products and small equipment used in dental offices for the treatment of patients. Offerings in this segment also include specialized treatment products including products used in the creation of dental appliances. Essential Dental Solutions products are designed to operate in an integrated system to provide solutions for high-tech dental procedures. The endodontic products include drills, files, sealers, irrigation needles and other tools or single-use solutions which support root canal procedures. The restorative products include dental ceramic offerings. The preventive products include small equipment products such as intraoral curing light systems, dental diagnostic systems and ultrasonic scalers and polishers, as well as other dental supplies including dental anesthetics, prophylaxis paste, dental sealants and impression materials. Orthodontic and Implant Solutions This segment is responsible for the design, manufacture, and sale of the Company’s various digital implant systems and innovative dental implant products, digital dentures and dentist directed aligner solutions. Offerings in this segment also include application of our digital services and technology, including those provided by our cloud-based platform. Orthodontics The Orthodontics product category includes an in-office aligner solution, SureSmile, and a direct-to-consumer aligner solution, Byte. The Orthodontics product category also includes a High Frequency Vibration technology device known as VPro or as HyperByte within Byte's product offering. The aligner offerings include software technology that enables aligner treatment planning and seamless connectivity of a digital workflow from diagnostics through treatment delivery. Implants & Prosthetics The Implants & Prosthetics product category includes technology to support the Company's digital workflows for implant systems, a portfolio of innovative dental implant products, digital dentures, crown and bridge porcelain products, bone regenerative and restorative solutions, treatment planning software and educational programs. The Implants & Prosthetics product category is supported by key technologies including custom abutments, advanced tapered immediate load screws and regenerative bone growth factor. Offerings in this segment also include dental prosthetics such as artificial teeth and precious metal dental alloys. Wellspect Healthcare This segment is responsible for the design, manufacture, and sale of the Company’s innovative continence care solutions for both urinary and bowel management. This category consists mainly of urology catheters and other healthcare-related consumable products. Segment Performance The Company’s four operating segments are organized primarily by product. They generally have overlapping geographical presence, customer bases, distribution channels, and regulatory oversight, with the exception of Wellspect Healthcare which has a more discreet market and regulatory environment specific to the industry for medical devices. These operating segments, which also form the Company’s reportable segments, are identified in accordance with how the Company’s CODM 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 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, goodwill and intangible asset impairments, restructuring and other costs, interest expense, net, other expense (income), net, amortization of intangible assets and depreciation resulting from the fair value step-up of property, plant, and equipment from acquisitions. The Company’s segment information for the three and nine months ended September 30, 2023 and 2022 was as follows: Net Sales Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Connected Technology Solutions $ 276 $ 286 $ 850 $ 875 Essential Dental Solutions 347 348 1,110 1,084 Orthodontic and Implant Solutions 252 247 781 772 Wellspect Healthcare 72 66 212 208 Total net sales $ 947 $ 947 $ 2,953 $ 2,939 Segment Adjusted Operating Income Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Connected Technology Solutions $ 22 $ 25 $ 54 $ 101 Essential Dental Solutions 115 110 365 361 Orthodontic and Implant Solutions 31 40 129 157 Wellspect Healthcare 26 19 65 57 Segment adjusted operating income 194 194 613 676 Reconciling items expense (income): All other (a) 63 77 233 223 Goodwill and intangible asset impairments 307 1,281 307 1,281 Restructuring and other costs 6 3 70 13 Interest expense, net 18 14 58 41 Other expense (income), net (4) 9 16 20 Amortization of intangible assets 53 51 159 159 Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations 1 — 2 2 Loss before income taxes $ (250) $ (1,241) $ (232) $ (1,063) (a) Includes the results of unassigned Corporate headquarters costs. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories, net were as follows: (in millions) September 30, 2023 December 31, 2022 Raw materials and supplies $ 173 $ 169 Work-in-process 83 77 Finished goods 395 381 Inventories, net $ 651 $ 627 |
RESTRUCTURING AND OTHER COSTS
RESTRUCTURING AND OTHER COSTS | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER COSTS | RESTRUCTURING AND OTHER COSTS Restructuring and other costs for the three and nine months ended September 30, 2023 and 2022 were recorded in the Consolidated Statements of Operations as follows: Affected Line Item Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Cost of products sold $ — $ — $ 4 $ — Selling, general, and administrative expenses 1 — 2 — Restructuring and other costs 6 3 70 13 Total restructuring and other costs $ 7 $ 3 $ 76 $ 13 Restructuring and other costs of $70 million recorded in the first nine months of 2023 consist primarily of employee severance benefits and other restructuring costs related to the plan approved by the Board of Directors of the Company on February 14, 2023. This plan seeks to restructure the Company’s business to improve operational performance and drive shareholder value creation through a new operating model with four operating segments, optimization of central functions and overall management infrastructure, and other efforts aimed at cost savings. The restructuring plan anticipates a reduction in the Company’s global workforce of approximately 8% to 10%, subject to co-determination processes with employee representative groups in countries where required which are now substantially complete. The Company expects to incur between $115 and $135 million in one-time charges, comprising $80 to $100 million in restructuring expenditures and charges, primarily related to employee transition, severance payments, employee benefits and facility closure costs, and $35 million in other non-recurring costs which mostly consist of consulting, legal and other professional service fees. The plan is expected to be substantially completed by mid-2024 and we expect that the majority of these costs will be incurred as cash expenditures in 2023. The estimates of these charges and their timing are subject to several assumptions, including local law requirements in various jurisdictions and co-determination aspects in countries where required. Actual amounts may differ materially from estimates. In addition, the Company may incur other charges or cash expenditures in connection with this plan which are not currently contemplated. The liabilities associated with the Company's restructuring plans are recorded in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. Activity in the Company’s restructuring accruals at September 30, 2023 was as follows: Severance (in millions) 2022 and Prior Plans 2023 Plan Total Balance at December 31, 2022 $ 7 $ — $ 7 Provisions 2 56 58 Amounts applied (4) (19) (23) Change in estimates (2) 6 4 Balance at September 30, 2023 $ 3 $ 43 $ 46 Other Restructuring Costs (in millions) 2022 and Prior Plans 2023 Plan Total Balance at December 31, 2022 $ 1 $ — $ 1 Provisions 1 7 8 Amounts applied (1) (7) (8) Balance at September 30, 2023 $ 1 $ — $ 1 The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows: (in millions) December 31, 2022 Provisions Amounts Change in Estimates September 30, 2023 Connected Technology Solutions $ 3 $ 15 $ (6) $ 6 $ 18 Essential Dental Solutions 4 23 (8) (1) 18 Orthodontic and Implant Solutions 1 14 (4) — 11 Wellspect Healthcare — 4 (3) — 1 All Other — 10 (10) (1) (1) Total $ 8 $ 66 $ (31) $ 4 $ 47 |
FINANCIAL INSTRUMENTS AND DERIV
FINANCIAL INSTRUMENTS AND DERIVATIVES | 9 Months Ended |
Sep. 30, 2023 | |
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 cash flows. The Company employs derivative financial instruments to hedge certain anticipated transactions, firm commitments, or assets and liabilities denominated in foreign currencies. Additionally, the Company utilizes interest rate swaps to convert fixed rate debt into variable rate debt or vice versa. The Company does not hold derivative instruments for trading or speculative purposes. 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 September 30, 2023 and the notional amounts expected to mature during the next 12 months. (in millions) Aggregate Notional Amount Aggregate Notional Amount Maturing within 12 Months Cash Flow Hedges Foreign exchange forward contracts $ 46 $ 46 Total derivative instruments designated as cash flow hedges $ 46 $ 46 Hedges of Net Investments Foreign exchange forward contracts $ 825 $ 85 Cross currency basis swaps 282 — Total derivative instruments designated as hedges of net investments $ 1,107 $ 85 Fair Value Hedges Interest rate swaps $ 250 $ — Foreign exchange forward contracts 50 50 Total derivative instruments designated as fair value hedges $ 300 $ 50 Derivative Instruments not Designated as Hedges Foreign exchange forward contracts $ 470 $ 470 Total derivative instruments not designated as hedges $ 470 $ 470 Cash Flow Hedges Foreign Exchange Risk Management The Company hedges select anticipated foreign currency cash flows to reduce volatility in both cash flows and reported earnings. The Company designates certain foreign exchange forward contracts as cash flow hedges. As a result, the Company records the fair value of the contracts 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 is amortized over the ten-year life of the notes. As of September 30, 2023 and December 31, 2022, $21 million and $23 million, respectively, of this loss is remaining to be amortized from AOCI in future periods. AOCI Release Overall, the derivatives designated as cash flow hedges are considered to be highly effective for accounting purposes. At September 30, 2023, 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 4, Comprehensive Income (Loss). 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 the aforementioned 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 (income) expense, 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, 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 July 2, 2021, the Company entered into a cross currency basis swap totaling a notional amount of $300 million which matures on June 3, 2030. The cross currency basis swap is designated as a hedge of net investments. This contract effectively converted a portion of the $750 million bond coupon from 3.3% to 1.7%. On May 25, 2021, the Company re-established its euro net investment hedge portfolio by entering into eight foreign exchange forward contracts, each with a notional amount of 10 million euro. The original contracts have quarterly maturity dates through March 2023 and the Company entered into additional foreign exchange contracts as individual contracts within the portfolio matured. As of September 30, 2023, the euro net investment hedge portfolio has an aggregate notional value of 160 million euro with maturity dates through September 2025. On July 20, 2023, the Company entered into a Swiss franc foreign exchange forward contract designated as a net investment hedge. The foreign exchange forward contract had a notional amount of 600 million Swiss francs. This net investment hedge was settled in September 2023 which resulted in cash receipts totaling $32 million. The Company subsequently entered into Swiss franc foreign exchange contracts designated as a net investment hedge with a total notional amount of 600 million Swiss francs. This portfolio of contracts has semi-annual maturity dates through July 2028. Fair Value Hedges Foreign Exchange Risk Management 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 these exposures. 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. The time-value component of the fair value of the derivative is reported on a straight-line basis in Other (income) expense, net in the Consolidated Statements of Operations in the applicable period. Any cash flows associated with these instruments are included in operating activities in the Consolidated Statements of Cash Flows. Interest Rate Risk Management On July 1, 2021, the Company entered into variable interest rate swaps with a notional amount of $250 million, which effectively converted a portion of the underlying fixed rate of 3.3% on the $750 million Senior Notes due June 2030 to a variable interest rate. Of the $250 million notional amount, $100 million has a term of five-years maturing on June 1, 2026 and $150 million has a term of nine years maturing on March 1, 2030. 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 (income) expense, 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. Gains and (losses) recorded in the Company’s Consolidated Statements of Operations related to the economic hedges not designated as hedges for the three and nine months ended September 30, 2023 and 2022 were not significant. Derivative Instrument Activity The effect of derivative hedging instruments on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (in millions) Cost of products sold Interest expense, net Other (income) expense, net Cost of products sold Interest expense, net Other (income) expense, net Total amounts of line items presented in the Statement of Operations in which the effects of cash flow, net investment or fair value hedges are recorded $ 452 $ 18 $ (4) $ 439 $ 14 $ 9 (Gain) loss on Cash Flow Hedges reclassified from AOCI into income Foreign exchange forward contracts $ 1 $ — $ — $ (1) $ — $ — Interest rate swaps — — — — — — (Gain) loss on Hedges of Net Investment Cross currency basis swaps $ — $ (1) $ — $ — $ (2) $ — Foreign exchange forward contracts — — (5) — — — (Gain) loss on Fair Value Hedges: Interest rate swaps $ — $ 3 $ — $ — $ 1 $ — Foreign exchange forward contracts — — (1) — — (13) Amount of Gain or (Loss) Recognized in AOCI Amount of Gain or (Loss) Reclassified from AOCI into Income Three Months Ended September 30, Consolidated Statements of Operations Location Three Months Ended September 30, (in millions) 2023 2022 2023 2022 Cash Flow Hedges Foreign exchange forward contracts $ 1 $ 3 Cost of products sold $ (1) $ 1 Interest rate swaps — — Interest expense, net — — Hedges of Net Investments Cross currency basis swaps $ 3 $ 18 Interest expense, net $ — $ — Foreign exchange forward contracts 29 11 Other expense (income), net — — Fair Value Hedges Interest rate swaps $ — $ — Interest expense, net $ — $ — Foreign exchange forward contracts 1 (1) Other expense (income), net — — 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: September 30, 2023 (in millions) Prepaid Expenses and Other Current Assets Other Noncurrent Assets Accrued Liabilities Other Noncurrent Liabilities Designated as Hedges: Foreign exchange forward contracts $ 27 $ 1 $ 5 $ 4 Interest rate swaps — — 12 25 Cross currency basis swaps 3 17 — — Total $ 30 $ 18 $ 17 $ 29 Not Designated as Hedges: Foreign exchange forward contracts $ 8 $ — $ 3 $ — Total $ 8 $ — $ 3 $ — December 31, 2022 (in millions) Prepaid Expenses and Other Current Assets Other Noncurrent Assets Accrued Liabilities Other Noncurrent Liabilities Designated as Hedges: Foreign exchange forward contracts $ 32 $ 3 $ 5 $ 2 Interest rate swaps — — 9 25 Cross currency basis swaps 4 22 — — Total $ 36 $ 25 $ 14 $ 27 Not Designated as Hedges: Foreign exchange forward contracts $ 3 $ — $ 5 $ — Total $ 3 $ — $ 5 $ — 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 September 30, 2023 were as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (in millions) Gross Amounts Recognized Gross Amount 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 $ 36 $ — $ 36 $ (5) $ — $ 31 Cross currency basis swaps 20 — 20 (8) — 12 Total assets $ 56 $ — $ 56 $ (13) $ — $ 43 Liabilities Foreign exchange forward contracts $ 12 $ — $ 12 $ (6) $ — $ 6 Interest rate swaps 37 — 37 (7) — 30 Total liabilities $ 49 $ — $ 49 $ (13) $ — $ 36 Offsetting of financial assets and liabilities under netting arrangements at December 31, 2022 were as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (in millions) Gross Amounts Recognized Gross Amount 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 $ 38 $ — $ 38 $ (7) $ — $ 31 Cross currency basis swaps 26 — 26 (12) — 14 Total assets $ 64 $ — $ 64 $ (19) $ — $ 45 Liabilities Foreign exchange forward contracts $ 12 $ — $ 12 $ (10) $ — $ 2 Interest rate swaps 34 — 34 (9) — 25 Total liabilities $ 46 $ — $ 46 $ (19) $ — $ 27 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT The estimated fair value and carrying value of the Company's total debt was $1,817 million and $1,989 million, respectively, at September 30, 2023. At December 31, 2022, the estimated fair value and carrying value were $1,769 million and $1,944 million, respectively. 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 September 30, 2023 and December 31, 2022 to companies with similar credit ratings for issues with similar terms and maturities. It is considered a Level 2 fair value measurement for disclosure purposes. Assets and liabilities measured at fair value on a recurring basis 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: September 30, 2023 (in millions) Total Level 1 Level 2 Level 3 Assets Cross currency basis swaps $ 20 $ — $ 20 $ — Foreign exchange forward contracts 36 — 36 — Total assets $ 56 $ — $ 56 $ — Liabilities Interest rate swaps $ 37 $ — $ 37 $ — Foreign exchange forward contracts 12 — 12 — Contingent considerations on acquisitions 4 — — 4 Total liabilities $ 53 $ — $ 49 $ 4 December 31, 2022 (in millions) Total Level 1 Level 2 Level 3 Assets Cross currency basis swaps $ 26 $ — $ 26 $ — Foreign exchange forward contracts 38 — 38 — Total assets $ 64 $ — $ 64 $ — Liabilities Interest rate swaps $ 34 $ — $ 34 $ — Foreign exchange forward contracts 12 — 12 — Contingent considerations on acquisitions 4 — — 4 Total liabilities $ 50 $ — $ 46 $ 4 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 rate swaps and foreign exchange forward contracts that are considered cash flow hedges. In addition, the Company at times employs certain cross currency basis swaps and forward exchange contracts that are considered hedges of net investment in foreign operations. There have been no transfers between fair value measurement levels during the nine months ended September 30, 2023. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe effective tax rate for the three months ended September 30, 2023, and 2022 was (6.3%) and 13.2%, respectively. The effective tax rate for the nine months ended September 30, 2023, and 2022 was 12.1% and 12.1%, respectively. The quarter to date decrease in the effective tax rate is due to the goodwill and intangible impairments. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS At September 30, 2023, the Company had $562 million of borrowing available under lines of credit, including lines available under its short-term arrangements and revolving credit facility. On May 12, 2023, the Company entered into the five-year senior unsecured multicurrency revolving facility, for an aggregate principal amount of $700 million that expires on May 12, 2028. The Facility replaced the $700 million five-year senior unsecured multicurrency revolving facility that was scheduled to expire on July 26, 2024. The Company also has a $500 million commercial paper program. The $700 million revolver serves as a back-up to the commercial paper facility, thus the total available credit under the commercial paper facility and the multi-currency revolving credit facility in the aggregate is $700 million. The Company had outstanding borrowings of $165 million and $95 million under the commercial paper facility at September 30, 2023 and December 31, 2022, respectively, and no outstanding borrowings under the multi-currency revolving credit facility. The Company also has access to $48 million in uncommitted short-term financing under lines of credit from various financial institutions, the availability of which is reduced by other short-term borrowings of $21 million. At September 30, 2023, the weighted-average interest rate for short-term debt was 5.5%. The Company’s revolving credit facility, term loans and senior notes contain certain affirmative and negative debt covenants relating to the Company's operations and financial condition. At September 30, 2023, the Company was in compliance with all debt covenants. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company assesses both goodwill and indefinite-lived intangible assets for impairment annually as of April 1 or more frequently if events or changes in circumstances indicate the asset might be impaired. On April 1, 2023, the Company realigned its reporting due to a change in organizational structure. Reporting units under the former structure were tested for impairment prior to the realignment, and no impairment was identified. As a result of the realignment, the Company reallocated its goodwill to align its new reporting units which resulted from the change in its operating segments. Goodwill was reassigned to each of the new reporting units using a relative fair value approach. The Company assessed the goodwill of the new reporting units and its indefinite-lived intangible assets for impairment as of April 1, 2023. Based on this test, it was determined that the fair values of its reporting units and indefinite-lived intangible assets more likely than not exceeded their carrying values, resulting in no impairment. In the quarter ended September 30, 2023, the Company identified indicators of a "more likely than not" impairment related to its Connected Technology Solutions reporting unit, which comprises all of the Connected Technology Solutions segment. The decline in fair value for this reporting unit was driven by adverse macroeconomic factors as a result of weakened demand, particularly in European markets, and increased discount rates. Since the second quarter, core underlying market interest rates, which serve as the basis for the discount rate assumptions in our impairment models, rose by approximately 110 basis points. These factors contributed to reduced forecasted revenues, lower operating margins, and reduced expectations for future cash flows in the near term, particularly demand for products which are commonly financed by end customers and are therefore adversely impacted by an environment of higher interest rates. The higher inflationary environment has also impacted the discretionary spending behavior of our customers more generally, further reducing global demand for certain products in favor of lower cost options. For the goodwill impairment test as of September 30, 2023, the fair value of the Connected Technology Solutions reporting unit was computed using a discounted cash flow model with inputs developed using both internal and market-based data. The discounted cash flow model uses ten-year forecasted cash flows plus a terminal value based on capitalizing the last period's cash flows using a perpetual growth rate. Significant assumptions used in the discounted cash flow model included, but were not limited to, discount rates of 11.5%, revenue growth rates (including perpetual growth rates), operating margin percentages, and net working capital changes of the reporting unit's business. As a result, the Company recorded a pre-tax goodwill impairment charge as of September 30, 2023 related to the Connected Technology Solutions reporting unit of $291 million, resulting in a full write-off of the remaining goodwill balance for the Connected Technology Solutions reporting unit within the Connected Technology Solutions segment. Based on quantitative and qualitative analyses performed for the other four reporting units, the Company believes there is no indication that the carrying value "more likely than not" exceeds the fair value in each case as of September 30, 2023; however, any further deterioration in key assumptions could result in impairment charges in the future. For the Company's reporting units that were not impaired, the Company applied a hypothetical sensitivity analysis by increasing the discount rate of these reporting units by 100 basis points. If discount rates were hypothetically increased by 100 basis points at September 30, 2023, the Implants & Prosthetics reporting unit within the Orthodontic and Implant Solutions segment would have an estimated fair value less than 10% in excess of its carrying value. Goodwill associated with this reporting unit was $1,133 million at September 30, 2023. Additionally, in conjunction with the goodwill impairment test in the quarter ended September 30, 2023, the Company tested the long-lived intangible assets related to the businesses within the Connected Technology Solutions reporting unit within the Connected Technology Solutions segment for impairment. The Company also identified an indicator of impairment for the indefinite-lived intangible assets within the Implants & Prosthetics reporting unit within the Orthodontic and Implant Solutions segment, and determined certain tradenames and trademarks were impaired. These indefinite-lived intangible assets were evaluated for impairment using an income approach, specifically a relief from royalty method. Significant assumptions used in the relief from royalty method included, but were not limited to, discount rates (ranging from 11.5% to 16.5%) revenue growth rates (including perpetual growth rates), and royalty rates. As a result, the Company recorded indefinite-lived intangible asset impairment charges of $14 million and $2 million for the Connected Technology Solutions and Orthodontic and Implant Solutions segments, respectively, for the three months ended September 30, 2023. The impairment charge was primarily driven by macroeconomic factors such as weakened demand, higher cost of capital, and cost inflation, which are contributing to reduced forecasted revenues. These charges were recorded in Goodwill and intangible asset impairment in the Consolidated Statements of Operations. As the fair value of these indefinite-lived intangible assets approximate carrying value as of September 30, 2023, any further decline in key assumptions could result in additional impairment in future periods. Based on qualitative assessments performed on the indefinite-lived intangible assets related to the businesses in the other reporting units, the Company believes there is no indication that the carrying value "more likely than not" exceeds the fair value of these indefinite-lived intangible assets in each case as of September 30, 2023; however, any further deterioration in key assumptions could result in impairment charges in the future. For the Company's indefinite-lived intangible assets that were not impaired, the Company performed a hypothetical sensitivity analysis by increasing the discount rate by 100 basis points. Under this sensitivity, certain indefinite-lived intangibles within the Connected Technology Solutions and Essential Dental Solutions segments would have a fair value less than 10% in excess of carrying value. The carrying value of these indefinite-lived intangible assets within the aforementioned segments was $27 million and $7 million, respectively, at September 30, 2023. Any deviation in actual financial results compared to the forecasted financial results or valuation assumptions used in the annual or interim tests, a decline in equity valuations, increases in interest rates, or changes in the use of intangible assets, among other factors, could have a material adverse effect to the fair value of either the reporting units or intangible assets and could result in a future impairment charge. There can be no assurance that the Company’s future asset impairment testing will not result in a material charge to earnings. Third Quarter 2022 Impairment In the third quarter of 2022, the Company identified indicators of a more likely than not impairment related to its former Digital Dental Group and Equipment & Instruments reporting units and indefinite-lived intangible assets, included within the former Technologies & Equipment segment, and indicators of a more likely than not impairment related to its indefinite-lived intangible assets for the former Consumables reporting unit within the former Consumables segment. The Company recorded a pre-tax goodwill impairment charge related to its former Digital Dental Group and Equipment & Instruments reporting units within the former Technologies & Equipment segment of $1,100 million and $87 million, respectively, and an indefinite-lived intangible asset impairment charge of $66 million and $26 million for the former Digital Dental Group and Equipment & Instruments reporting units, respectively, within the former Technologies & Equipment segment and a $2 million impairment charge for the former Consumables reporting unit within the former Consumables segment for the three months ended September 30, 2022. A reconciliation of changes in the Company’s goodwill by reportable segment were as follows: (in millions) Technologies & Equipment Consumables Connected Technology Solutions Essential Dental Solutions Orthodontic and Implant Solutions Wellspect Healthcare Total Balance at December 31, 2022 Goodwill $ 5,902 $ 866 $ — $ — $ — $ — $ 6,768 Accumulated impairment losses (4,080) — — — — — (4,080) Goodwill, net December 31, 2022 $ 1,822 $ 866 $ — $ — $ — $ — $ 2,688 Translation 9 4 — — — — 13 Balance at March 31, 2023 Goodwill $ 5,911 $ 870 $ — $ — $ — $ — $ 6,781 Accumulated impairment losses (4,080) — — — — — (4,080) Goodwill, net March 31, 2023 $ 1,831 $ 870 $ — $ — $ — $ — $ 2,701 Realignment of goodwill $ (1,831) $ (870) $ 293 $ 835 $ 1,303 $ 270 $ — Translation — — — 1 (5) 6 2 Goodwill, net June 30, 2023 $ — $ — $ 293 $ 836 $ 1,298 $ 276 $ 2,703 Impairment — — (291) — — — (291) Translation — — (2) (7) (19) (10) (38) Balance at September 30, 2023 Goodwill $ — $ — $ 291 $ 829 $ 1,279 $ 266 $ 2,665 Accumulated impairment losses — — (291) — — — (291) Goodwill, net September 30, 2023 $ — $ — $ — $ 829 $ 1,279 $ 266 $ 2,374 Identifiable definite-lived and indefinite-lived intangible assets were as follows: September 30, 2023 December 31, 2022 (in millions) Gross Accumulated Net Gross Accumulated Net Developed technology and patents $ 1,648 $ (939) $ 709 $ 1,658 $ (848) $ 810 Tradenames and trademarks 271 (98) 173 273 (96) 177 Licensing agreements 29 (27) 2 30 (26) 4 Customer relationships 1,038 (642) 396 1,057 (600) 457 Total definite-lived $ 2,986 $ (1,706) $ 1,280 $ 3,018 $ (1,570) $ 1,448 Indefinite-lived tradenames and trademarks $ 426 $ — $ 426 $ 450 $ — $ 450 In-process R&D (a) 5 — 5 5 — 5 Total indefinite-lived $ 431 $ — $ 431 $ 455 $ — $ 455 Total identifiable intangible assets $ 3,417 $ (1,706) $ 1,711 $ 3,473 $ (1,570) $ 1,903 (a) Intangible assets acquired in a business combination that are in-process and used in research and development ("R&D") activities are considered indefinite-lived until the completion or abandonment of the R&D efforts. The useful life and amortization of those assets will be determined once the R&D efforts are completed. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingencies 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 court in Cato approved the settlement in that case, the settlement payment has been made, and the court dismissed the lawsuit. The parties have also reached a settlement in the Olivares and Holt class action, which is immaterial to the financial statements of the Company. The final settlement amount has been approved by the Court and was paid by the Company in the first quarter of 2023. 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 2016 merger of Sirona Dental Systems Inc. ("Sirona") with DENTSPLY International Inc. (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. The Plaintiffs did not appeal the Appellate Division decision. 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 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. The plaintiff filed its second amended complaint on January 22, 2021, and the Company filed a motion to dismiss the second amended complaint on March 8, 2021, with briefing on the motion fully submitted on May 21, 2021. The Company’s motion to dismiss was denied in a ruling by the Court on March 29, 2023 and the Company’s answer to the second amended complaint was filed on May 12, 2023. On September 29, 2023, the plaintiff filed a motion for class certification. The Company opposition to the plaintiff's motion for class certification is due December 21, 2023, with briefing on the plaintiff's motion to be fully completed by February 23, 2024. On June 2, 2022, the Company was named as a defendant in a putative class action filed in the U.S. District Court for the Southern District of Ohio captioned City of Miami General Employees’ & Sanitation Employees’ Retirement Trust v. Casey, Jr. et al., No. 2:22-cv-02371 (S.D. Ohio), and on July 28, 2022, the Company was named as a defendant in a putative class action filed in the U.S. District Court for the Southern District of New York captioned San Antonio Fire and Police Pension Fund v. Dentsply Sirona Inc. et al., No. 1:22-cv-06339 (together, the “Securities Litigation”). The complaints in the Securities Litigation are substantially similar and both allege that, during the period from June 9, 2021 through May 9, 2022, the Company, Mr. Donald M. Casey Jr., the Company’s former Chief Executive Officer, and Mr. Jorge Gomez, the Company’s former Chief Financial Officer, violated U.S. securities laws by, among other things, making materially false and misleading statements or omissions, including regarding the manner in which the Company recognized revenue tied to distributor rebate and incentive programs. On March 27, 2023, the Court in the Southern District of Ohio ordered the transfer of the putative class action to the Southern District of New York (the "Court"). On June 1, 2023, the Court consolidated the two separate actions under case No. 1:22-cv-06339 and appointed the City of Birmingham Retirement and Relief System, the El Paso Firemen & Policemen’s Pension Fund, and the Wayne County Employees’ Retirement System as Lead Plaintiffs for the putative class. Lead Plaintiffs filed an amended class action complaint on July 28, 2023 (the "Amended Complaint"). In addition to asserting the same claims against the Company, Mr. Casey, and Mr. Gomez, the Amended Complaint added the Company’s former Chief Accounting Officer, Mr. Ranjit S. Chadha, as a defendant (collectively, “Defendants”). On October 10, 2023, Defendants filed a motion to dismiss the Amended Complaint. Lead Plaintiffs’ opposition to Defendants’ motion to dismiss is due by December 8, 2023, and Defendants’ reply is due by January 8, 2024. In addition to the Securities Litigation, as previously disclosed, the Company voluntarily contacted the SEC following the Company’s announcement on May 10, 2022 of the Audit and Finance Committee’s internal investigation. The Company continues to cooperate with the SEC regarding this matter. Separately, on July 13, 2023, Dentsply Sirona stockholder George Presura filed a shareholder derivative suit in the Delaware Court of Chancery captioned George Presura, Derivatively on Behalf of Nominal Defendant Dentsply Sirona Inc. v. Donald M. Casey Jr. et al. and Dentsply Sirona, Inc., No. 2023-0708-NAC (the “Derivative Litigation”). The complaint, filed derivatively on behalf of the Company, asserts claims against current and former members of the Company’s Board of Directors and current and former executive officers, including Messrs. Casey and Gomez. The derivative complaint in this case contains allegations similar to those in the Securities Litigation, and it alleges that during the period from June 9, 2021 through July 13, 2023, various of the defendants breached fiduciary duties, committed corporate waste, and misappropriated information to conduct insider trading by making materially false and misleading statements or omissions regarding the Company’s recognition of revenue tied to distributor rebate and incentive programs and distributor inventory levels. On August 4, 2023, the Delaware Court of Chancery stayed the Derivative Litigation until the earlier of public announcement of a settlement of the Securities Litigation or resolution of the pending motion to dismiss in the Securities Litigation. On March 21, 2023, Mr. Carlo Gobbetti filed a claim in the Milan Chamber of Arbitration against Dentsply Sirona Italia S.r.l. ("DSI"), Italy, a wholly owned subsidiary of the Company, seeking a total of €28 million for the alleged failure to pay a portion of the purchase price pursuant to a Share Purchase Agreement, dated October 8, 2012 (the “SPA”), in which Sirona Dental Systems, S.r.l., which at the time of execution of the SPA was a wholly-owned subsidiary of Sirona Dental Systems, Inc., acquired all of the shares of MHT S.p.A., an Italian corporation, from Mr. Gobbetti, and various other sellers. Sirona Dental Systems S.r.l. merged into Dentsply Italia S.r.l. in 2018 (the surviving entity is now Dentsply Sirona Italia S.r.l.). In connection with the closing of that transaction, SIRONA Dental Systems GmbH paid an amount equal to €7 million into an escrow account (the “Escrow Account”). The proceeds of the Escrow Account were to be released to Mr. Gobbetti and the other sellers upon the satisfaction of certain conditions, including the delivery by July 2013 of a new prototype of an MHT S.p.A. camera which had to meet certain specifications. Mr. Gobbetti claims that he is entitled to receive the €7 million outstanding balance of the purchase price under the SPA, plus €21 million for damages incurred as a consequence of the failure to make the payment. Mr. Gobbetti claims that he has a right to receive the full purchase price under the SPA even if the conditions set out in the SPA to deliver a prototype of the MHT S.p.A. camera by July 2013 were not met. On May 15, 2023, DSI filed its initial statement of Defense denying that Mr. Gobbetti and the other sellers were entitled to receive the funds deposited in the Escrow Account and further disputing the allegations. Following the constitution of the arbitral tribunal, the first hearing was held on September 13, 2023 and the next hearing is scheduled for January 19, 2024. Except as noted above, no specific amounts of damages have been alleged in these lawsuits. The Company will continue to incur legal fees in connection with these pending cases, including expenses for the reimbursement of legal fees of present and former officers and directors under indemnification obligations. The expense of continuing to defend such litigation may be significant. The Company intends to defend these lawsuits vigorously, but there can be no assurance that the Company will be successful in any defense. If any of the lawsuits are decided adversely, the Company may be liable for significant damages directly or under our indemnification obligations, which could adversely affect our business, results of operations and cash flows. At this stage, the Company is unable to assess whether any material loss or adverse effect is reasonably possible as a result of these lawsuits or estimate the range of any potential loss. The Internal Revenue Service (“IRS”) conducted an examination of the U.S. federal income tax returns for tax years 2012 through 2014. In February 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 Independent Office of Appeals (the "Appeals Office") in October 2020, and in November 2020 submitted a supplemental response to questions raised by the Appeals Office. During the first quarter of 2023, after an extended review by the Appeals Office, the Company received a notice from the IRS, allowing the Company’s worthless stock deduction for tax year 2013. As a result, the Company received a refund of $5 million for tax year 2012 with no further adjustments to the 2013 or 2014 tax return. IRS is conducting an examination of our U.S. federal income tax returns for the tax years 2015 through 2016. In April 2023, the Company received a Notice of Proposed Adjustment from the IRS examination team proposing an adjustment related to an internal reorganization completed in 2016 with respect to the integration of certain operations of Sirona Dental Systems, Inc. following its acquisition in 2016. Although the proposed adjustment does not result in any additional federal income tax liability for the internal reorganization, if sustained, the proposed adjustment would result in the Company owing additional federal income taxes on a distribution of $451 million as a result of a stock redemption that occurred after the internal reorganization was completed in 2016. We believe that we accurately reported the federal income tax consequences of the internal restructuring and stock redemption in our tax returns and will submit an administrative protest with the IRS Independent Office of Appeals contesting the examination team’s proposed adjustments if the issue is not resolved with the IRS examination team. We intend to vigorously defend our reported positions. However, the outcome of this dispute involves a number of uncertainties, including 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 could have a material adverse effect on the consolidated results of operations, financial position, and liquidity of the Company. The Company intends to vigorously defend its positions and pursue related appeals in the above-described pending matters. 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. Except as otherwise noted, the Company generally cannot predict what the eventual outcome of the above described pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter may be. 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 Purchase Commitments The Company has certain non-cancelable future commitments primarily related to long-term supply contracts for key components and raw materials. At September 30, 2023, non-cancelable purchase commitments are as follows: (in millions) 2023 $ 58 2024 174 2025 56 2026 57 2027 1 Thereafter — Total $ 346 The above information should be read in conjunction with Part II, Item 7 “Contractual Obligations” and Part II, Item 8, Note 22, Commitments and Contingencies, in our 2022 Form 10-K/A. Off-Balance Sheet Arrangements As of September 30, 2023, we had no material off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources other than certain items disclosed in the sections above. Indemnification In the normal course of business to facilitate sale of our products and services, we indemnify certain parties: customers, vendors, lessors, and other parties with respect to certain matters, including, but not limited to, services to be provided by us and intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with our directors and our executive officers that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net loss attributable to Dentsply Sirona | $ (266) | $ (1,077) | $ (199) | $ (935) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BUSINESS AND BASIS OF PRESENT_2
BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and the rules of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Results for interim periods should not be considered indicative of results for a full year. These financial statements and related notes contain the accounts of DENTSPLY SIRONA Inc. and subsidiaries (“Dentsply Sirona” or the “Company”) on a consolidated basis and should be read in conjunction with the consolidated financial statements and notes included in the Company’s most recent Form 10-K/A for the year ended December 31, 2022, filed with the Securities and Exchange Commission on August 7, 2023 (the "2022 Form 10-K/A"). |
Reportable Segments | Effective April 1, 2023 the Company realigned its reporting structure due to certain organizational changes. As a result, the Company's reportable segments changed from Technology & Equipment and Consumables to (i) Connected Technology Solutions, (ii) Essential Dental Solutions, (iii) Orthodontic and Implant Solutions, and (iv) Wellspect Healthcare. All comparative segment information and disaggregated revenue information has been recast to reflect the Company's new segment structure and current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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 Net sales and expense during the reporting period. Actual results could differ materially from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers , as if it had originated the contracts. The new standard requirement to measure contract assets and contract liabilities acquired in a business combination at fair value differs from the current approach. The amendments in this update were effective for the fiscal years and interim periods ending after December 31, 2022. The Company adopted this accounting standard on January 1, 2023. The adoption of this standard did not materially impact the Company's consolidated financial statements or related disclosures. In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which was subsequently amended by ASU No. 2021-01 “Reference Rate Reform (Topic 848): Scope” in January 2021 and by ASU No. 2022-06 “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” in December 2022. The new standard provides optional expedients and exceptions to contracts, hedging relationships, and other transactions that reference the London Interbank Offer Rate or another rate expected to be discontinued due to the reference rate reform. This standard was effective upon issuance. The adoption of this standard did not materially impact the Company's consolidated financial statements or related disclosures. |
Revenue | Revenues are measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. |
Inventory | Inventories are stated at the lower of cost and net realizable value. |
Foreign Exchange Risk Management | Foreign Exchange Risk Management The Company hedges select anticipated foreign currency cash flows to reduce volatility in both cash flows and reported earnings. The Company designates certain foreign exchange forward contracts as cash flow hedges. As a result, the Company records the fair value of the contracts 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. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Net sales disaggregated by product category for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Equipment & Instruments $ 148 $ 163 $ 480 $ 498 CAD/CAM 128 123 370 377 Connected Technology Solutions $ 276 $ 286 $ 850 $ 875 Essential Dental Solutions $ 347 $ 348 $ 1,110 $ 1,084 Orthodontics $ 83 $ 76 $ 255 $ 220 Implants & Prosthetics 169 171 526 552 Orthodontic and Implant Solutions $ 252 $ 247 $ 781 $ 772 Wellspect Healthcare $ 72 $ 66 $ 212 $ 208 Total net sales $ 947 $ 947 $ 2,953 $ 2,939 |
Schedule of Net Sales Disaggregated by Geographic Region | Net sales disaggregated by geographic region for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 United States $ 356 $ 357 $ 1,069 $ 1,023 Europe 354 358 1,153 1,183 Rest of World 237 232 731 733 Total net sales $ 947 $ 947 $ 2,953 $ 2,939 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation | The amounts of stock compensation expense recorded in the Company's Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Cost of products sold $ 1 $ 1 $ 3 $ 2 Selling, general, and administrative expense 1 12 25 43 Research and development expense 1 1 3 2 Restructuring and other costs (1) — 2 — Total stock based compensation expense $ 2 $ 14 $ 33 $ 47 Related deferred income tax benefit $ 2 $ 1 $ 5 $ 4 |
COMPREHENSIVE INCOME (LOSS) (Ta
COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive income (loss) ("AOCI"), net of tax, by component for the nine months ended September 30, 2023 and 2022 were as follows: (in millions) Foreign Currency Translation Gain (Loss) Gain (Loss) on Cash Flow Hedges Gain (Loss) on Net Investment and Fair Value Hedges Pension Total Balance, net of tax, at December 31, 2022 $ (522) $ (17) $ (73) $ (16) $ (628) Other comprehensive income (loss) before reclassifications and tax impact 6 (1) — — 5 Tax benefit 9 — — — 9 Other comprehensive income (loss), net of tax, before reclassifications 15 (1) — — 14 Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — — — Net increase (decrease) in other comprehensive income 15 (1) — — 14 Balance, net of tax, at March 31, 2023 $ (507) $ (18) $ (73) $ (16) $ (614) Other comprehensive loss before reclassifications and tax impact (3) — (11) — (14) Tax benefit 3 — 3 — 6 Other comprehensive loss, net of tax, before reclassifications — — (8) — (8) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 2 — — 2 Net increase (decrease) in other comprehensive income — 2 (8) — (6) Balance, net of tax, at June 30, 2023 $ (507) $ (16) $ (81) $ (16) $ (620) Other comprehensive (loss) income before reclassifications and tax impact (60) 1 33 — (26) Tax expense (4) — (8) — (12) Other comprehensive (loss) benefit, net of tax, before reclassifications (64) 1 25 — (38) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 1 — — 1 Net (decrease) increase in other comprehensive income (64) 2 25 — (37) Balance, net of tax, at September 30, 2023 $ (571) $ (14) $ (56) $ (16) $ (657) (in millions) Foreign Currency Translation Gain (Loss) Gain (Loss) on Cash Flow Hedges Gain (Loss) on Net Investment and Fair Value Hedges Pension Total Balance, net of tax, at December 31, 2021 $ (366) $ (16) $ (103) $ (107) $ (592) Other comprehensive (loss) income before reclassifications and tax impact (37) 3 9 — (25) Tax expense (11) — (1) — (12) Other comprehensive (loss) income, net of tax, before reclassifications (48) 3 8 — (37) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — (1) — 1 — Net (decrease) increase in other comprehensive income (48) 2 8 1 (37) Balance, net of tax, at March 31, 2022 $ (414) $ (14) $ (95) $ (106) $ (629) Other comprehensive (loss) income before reclassifications and tax impact (86) (3) 32 — (57) Tax expense (28) — (8) — (36) Other comprehensive (loss) income, net of tax, before reclassifications (114) (3) 24 — (93) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 1 — 2 3 Net (decrease) increase in other comprehensive income (114) (2) 24 2 (90) Balance, net of tax, at June 30, 2022 $ (528) $ (16) $ (71) $ (104) $ (719) Other comprehensive (loss) income before reclassifications and tax impact (120) 3 28 — (89) Tax expense (28) (1) (7) — (36) Other comprehensive (loss) income, net of tax, before reclassifications (148) 2 21 — (125) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — (1) — 1 — Net (decrease) increase in other comprehensive income (148) 1 21 1 (125) Balance, net of tax, at September 30, 2022 $ (676) $ (15) $ (50) $ (103) $ (844) |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2023 and 2022 were as follows: Basic Earnings Per Common Share Three Months Ended Nine Months Ended (in millions, except per share amounts) 2023 2022 2023 2022 Net loss attributable to Dentsply Sirona $ (266) $ (1,077) $ (199) $ (935) Weighted average common shares outstanding 211.8 214.9 212.7 215.6 Loss per common share - basic $ (1.25) $ (5.01) $ (0.94) $ (4.34) Diluted Earnings Per Common Share Three Months Ended Nine Months Ended (in millions, except per share amounts) 2023 2022 2023 2022 Net loss attributable to Dentsply Sirona $ (266) $ (1,077) $ (199) $ (935) Weighted average common shares outstanding 211.8 214.9 212.7 215.6 Incremental weighted average shares from assumed exercise of dilutive options from stock-based compensation awards — — — — Total weighted average diluted shares outstanding 211.8 214.9 212.7 215.6 Loss per common share - diluted $ (1.25) $ (5.01) $ (0.94) $ (4.34) Weighted average shares excluded from diluted common shares outstanding due to reported net loss 1.1 0.3 1.1 0.5 Weighted average shares excluded from diluted common shares outstanding due to antidilutive nature 3.0 3.6 3.4 3.6 |
Accelerated Share Repurchases | (in millions, except per share amounts) Initial Delivery Final Settlement Agreement Date Amount Paid Shares Received Price per share Value of Shares as a % of Contract Value Settlement Date Total Shares Received Average Price per Share March 3, 2023 $ 150 3.1 $ 38.74 80 % April 28, 2023 3.9 $ 38.55 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Company’s Segment Information | The Company’s segment information for the three and nine months ended September 30, 2023 and 2022 was as follows: Net Sales Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Connected Technology Solutions $ 276 $ 286 $ 850 $ 875 Essential Dental Solutions 347 348 1,110 1,084 Orthodontic and Implant Solutions 252 247 781 772 Wellspect Healthcare 72 66 212 208 Total net sales $ 947 $ 947 $ 2,953 $ 2,939 |
Segment Adjusted Operating Income | Segment Adjusted Operating Income Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Connected Technology Solutions $ 22 $ 25 $ 54 $ 101 Essential Dental Solutions 115 110 365 361 Orthodontic and Implant Solutions 31 40 129 157 Wellspect Healthcare 26 19 65 57 Segment adjusted operating income 194 194 613 676 Reconciling items expense (income): All other (a) 63 77 233 223 Goodwill and intangible asset impairments 307 1,281 307 1,281 Restructuring and other costs 6 3 70 13 Interest expense, net 18 14 58 41 Other expense (income), net (4) 9 16 20 Amortization of intangible assets 53 51 159 159 Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations 1 — 2 2 Loss before income taxes $ (250) $ (1,241) $ (232) $ (1,063) (a) Includes the results of unassigned Corporate headquarters costs. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, net were as follows: (in millions) September 30, 2023 December 31, 2022 Raw materials and supplies $ 173 $ 169 Work-in-process 83 77 Finished goods 395 381 Inventories, net $ 651 $ 627 |
RESTRUCTURING AND OTHER COSTS (
RESTRUCTURING AND OTHER COSTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring and other costs for the three and nine months ended September 30, 2023 and 2022 were recorded in the Consolidated Statements of Operations as follows: Affected Line Item Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Cost of products sold $ — $ — $ 4 $ — Selling, general, and administrative expenses 1 — 2 — Restructuring and other costs 6 3 70 13 Total restructuring and other costs $ 7 $ 3 $ 76 $ 13 Severance (in millions) 2022 and Prior Plans 2023 Plan Total Balance at December 31, 2022 $ 7 $ — $ 7 Provisions 2 56 58 Amounts applied (4) (19) (23) Change in estimates (2) 6 4 Balance at September 30, 2023 $ 3 $ 43 $ 46 Other Restructuring Costs (in millions) 2022 and Prior Plans 2023 Plan Total Balance at December 31, 2022 $ 1 $ — $ 1 Provisions 1 7 8 Amounts applied (1) (7) (8) Balance at September 30, 2023 $ 1 $ — $ 1 |
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, 2022 Provisions Amounts Change in Estimates September 30, 2023 Connected Technology Solutions $ 3 $ 15 $ (6) $ 6 $ 18 Essential Dental Solutions 4 23 (8) (1) 18 Orthodontic and Implant Solutions 1 14 (4) — 11 Wellspect Healthcare — 4 (3) — 1 All Other — 10 (10) (1) (1) Total $ 8 $ 66 $ (31) $ 4 $ 47 |
FINANCIAL INSTRUMENTS AND DER_2
FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and the notional amounts expected to mature during the next 12 months. (in millions) Aggregate Notional Amount Aggregate Notional Amount Maturing within 12 Months Cash Flow Hedges Foreign exchange forward contracts $ 46 $ 46 Total derivative instruments designated as cash flow hedges $ 46 $ 46 Hedges of Net Investments Foreign exchange forward contracts $ 825 $ 85 Cross currency basis swaps 282 — Total derivative instruments designated as hedges of net investments $ 1,107 $ 85 Fair Value Hedges Interest rate swaps $ 250 $ — Foreign exchange forward contracts 50 50 Total derivative instruments designated as fair value hedges $ 300 $ 50 Derivative Instruments not Designated as Hedges Foreign exchange forward contracts $ 470 $ 470 Total derivative instruments not designated as hedges $ 470 $ 470 |
Schedule of Derivative Instruments | The effect of derivative hedging instruments on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (in millions) Cost of products sold Interest expense, net Other (income) expense, net Cost of products sold Interest expense, net Other (income) expense, net Total amounts of line items presented in the Statement of Operations in which the effects of cash flow, net investment or fair value hedges are recorded $ 452 $ 18 $ (4) $ 439 $ 14 $ 9 (Gain) loss on Cash Flow Hedges reclassified from AOCI into income Foreign exchange forward contracts $ 1 $ — $ — $ (1) $ — $ — Interest rate swaps — — — — — — (Gain) loss on Hedges of Net Investment Cross currency basis swaps $ — $ (1) $ — $ — $ (2) $ — Foreign exchange forward contracts — — (5) — — — (Gain) loss on Fair Value Hedges: Interest rate swaps $ — $ 3 $ — $ — $ 1 $ — Foreign exchange forward contracts — — (1) — — (13) Amount of Gain or (Loss) Recognized in AOCI Amount of Gain or (Loss) Reclassified from AOCI into Income Three Months Ended September 30, Consolidated Statements of Operations Location Three Months Ended September 30, (in millions) 2023 2022 2023 2022 Cash Flow Hedges Foreign exchange forward contracts $ 1 $ 3 Cost of products sold $ (1) $ 1 Interest rate swaps — — Interest expense, net — — Hedges of Net Investments Cross currency basis swaps $ 3 $ 18 Interest expense, net $ — $ — Foreign exchange forward contracts 29 11 Other expense (income), net — — Fair Value Hedges Interest rate swaps $ — $ — Interest expense, net $ — $ — Foreign exchange forward contracts 1 (1) Other expense (income), net — — Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (in millions) Cost of products sold Interest expense, net Other expense (income), net Cost of products sold Interest expense, net Other expense (income), net Total amounts of line items presented in the Statement of Operations in which the effects of cash flow, net investment or fair value hedges are recorded $ 1,389 $ 58 $ 16 $ 1,329 $ 41 $ 20 (Gain) loss on Cash Flow Hedges reclassified from AOCI into income Foreign exchange forward contracts $ 1 $ — $ — $ (3) $ — $ — Interest rate swaps — 2 — — 2 — (Gain) loss on Hedges of Net Investment Cross currency basis swaps $ — $ (3) $ — $ — $ (4) $ — Foreign exchange forward contracts — — (6) — — (1) (Gain) loss on Fair Value Hedges: Interest rate swaps $ — $ 8 $ — $ — $ — $ — Foreign exchange forward contracts — — (4) — — (37) Amount of Gain or (Loss) Recognized in AOCI Amount of Gain or (Loss) Reclassified from AOCI into Income Nine Months Ended September 30, Consolidated Statements of Operations Location Nine Months Ended September 30, (in millions) 2023 2022 2023 2022 Cash Flow Hedges Foreign exchange forward contracts $ — $ 3 Cost of products sold $ (1) $ 3 Interest rate swaps — — Interest expense, net (2) (2) Hedges of Net Investments Cross currency basis swaps $ (6) $ 47 Interest expense, net $ — $ — Foreign exchange forward contracts 26 24 Other expense (income), net — — Fair Value Hedges Interest rate swaps $ — $ — Interest expense, net $ — $ — Foreign exchange forward contracts 2 (2) Other expense (income), net — — |
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: September 30, 2023 (in millions) Prepaid Expenses and Other Current Assets Other Noncurrent Assets Accrued Liabilities Other Noncurrent Liabilities Designated as Hedges: Foreign exchange forward contracts $ 27 $ 1 $ 5 $ 4 Interest rate swaps — — 12 25 Cross currency basis swaps 3 17 — — Total $ 30 $ 18 $ 17 $ 29 Not Designated as Hedges: Foreign exchange forward contracts $ 8 $ — $ 3 $ — Total $ 8 $ — $ 3 $ — December 31, 2022 (in millions) Prepaid Expenses and Other Current Assets Other Noncurrent Assets Accrued Liabilities Other Noncurrent Liabilities Designated as Hedges: Foreign exchange forward contracts $ 32 $ 3 $ 5 $ 2 Interest rate swaps — — 9 25 Cross currency basis swaps 4 22 — — Total $ 36 $ 25 $ 14 $ 27 Not Designated as Hedges: Foreign exchange forward contracts $ 3 $ — $ 5 $ — Total $ 3 $ — $ 5 $ — |
Offsetting Derivative Assets and Liabilities | Offsetting of financial assets and liabilities under netting arrangements at September 30, 2023 were as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (in millions) Gross Amounts Recognized Gross Amount 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 $ 36 $ — $ 36 $ (5) $ — $ 31 Cross currency basis swaps 20 — 20 (8) — 12 Total assets $ 56 $ — $ 56 $ (13) $ — $ 43 Liabilities Foreign exchange forward contracts $ 12 $ — $ 12 $ (6) $ — $ 6 Interest rate swaps 37 — 37 (7) — 30 Total liabilities $ 49 $ — $ 49 $ (13) $ — $ 36 Offsetting of financial assets and liabilities under netting arrangements at December 31, 2022 were as follows: Gross Amounts Not Offset in the Consolidated Balance Sheets (in millions) Gross Amounts Recognized Gross Amount 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 $ 38 $ — $ 38 $ (7) $ — $ 31 Cross currency basis swaps 26 — 26 (12) — 14 Total assets $ 64 $ — $ 64 $ (19) $ — $ 45 Liabilities Foreign exchange forward contracts $ 12 $ — $ 12 $ (10) $ — $ 2 Interest rate swaps 34 — 34 (9) — 25 Total liabilities $ 46 $ — $ 46 $ (19) $ — $ 27 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities at Fair Value | 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: September 30, 2023 (in millions) Total Level 1 Level 2 Level 3 Assets Cross currency basis swaps $ 20 $ — $ 20 $ — Foreign exchange forward contracts 36 — 36 — Total assets $ 56 $ — $ 56 $ — Liabilities Interest rate swaps $ 37 $ — $ 37 $ — Foreign exchange forward contracts 12 — 12 — Contingent considerations on acquisitions 4 — — 4 Total liabilities $ 53 $ — $ 49 $ 4 December 31, 2022 (in millions) Total Level 1 Level 2 Level 3 Assets Cross currency basis swaps $ 26 $ — $ 26 $ — Foreign exchange forward contracts 38 — 38 — Total assets $ 64 $ — $ 64 $ — Liabilities Interest rate swaps $ 34 $ — $ 34 $ — Foreign exchange forward contracts 12 — 12 — Contingent considerations on acquisitions 4 — — 4 Total liabilities $ 50 $ — $ 46 $ 4 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A reconciliation of changes in the Company’s goodwill by reportable segment were as follows: (in millions) Technologies & Equipment Consumables Connected Technology Solutions Essential Dental Solutions Orthodontic and Implant Solutions Wellspect Healthcare Total Balance at December 31, 2022 Goodwill $ 5,902 $ 866 $ — $ — $ — $ — $ 6,768 Accumulated impairment losses (4,080) — — — — — (4,080) Goodwill, net December 31, 2022 $ 1,822 $ 866 $ — $ — $ — $ — $ 2,688 Translation 9 4 — — — — 13 Balance at March 31, 2023 Goodwill $ 5,911 $ 870 $ — $ — $ — $ — $ 6,781 Accumulated impairment losses (4,080) — — — — — (4,080) Goodwill, net March 31, 2023 $ 1,831 $ 870 $ — $ — $ — $ — $ 2,701 Realignment of goodwill $ (1,831) $ (870) $ 293 $ 835 $ 1,303 $ 270 $ — Translation — — — 1 (5) 6 2 Goodwill, net June 30, 2023 $ — $ — $ 293 $ 836 $ 1,298 $ 276 $ 2,703 Impairment — — (291) — — — (291) Translation — — (2) (7) (19) (10) (38) Balance at September 30, 2023 Goodwill $ — $ — $ 291 $ 829 $ 1,279 $ 266 $ 2,665 Accumulated impairment losses — — (291) — — — (291) Goodwill, net September 30, 2023 $ — $ — $ — $ 829 $ 1,279 $ 266 $ 2,374 |
Schedule of Definite-lived and Indefinite-lived Intangible Assets | Identifiable definite-lived and indefinite-lived intangible assets were as follows: September 30, 2023 December 31, 2022 (in millions) Gross Accumulated Net Gross Accumulated Net Developed technology and patents $ 1,648 $ (939) $ 709 $ 1,658 $ (848) $ 810 Tradenames and trademarks 271 (98) 173 273 (96) 177 Licensing agreements 29 (27) 2 30 (26) 4 Customer relationships 1,038 (642) 396 1,057 (600) 457 Total definite-lived $ 2,986 $ (1,706) $ 1,280 $ 3,018 $ (1,570) $ 1,448 Indefinite-lived tradenames and trademarks $ 426 $ — $ 426 $ 450 $ — $ 450 In-process R&D (a) 5 — 5 5 — 5 Total indefinite-lived $ 431 $ — $ 431 $ 455 $ — $ 455 Total identifiable intangible assets $ 3,417 $ (1,706) $ 1,711 $ 3,473 $ (1,570) $ 1,903 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | The Company has certain non-cancelable future commitments primarily related to long-term supply contracts for key components and raw materials. At September 30, 2023, non-cancelable purchase commitments are as follows: (in millions) 2023 $ 58 2024 174 2025 56 2026 57 2027 1 Thereafter — Total $ 346 The above information should be read in conjunction with Part II, Item 7 “Contractual Obligations” and Part II, Item 8, Note 22, Commitments and Contingencies, in our 2022 Form 10-K/A. |
REVENUE - SCHEDULE OF DISAGGREG
REVENUE - SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 947 | $ 947 | $ 2,953 | $ 2,939 |
Connected Technology Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 276 | 286 | 850 | 875 |
Essential Dental Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 347 | 348 | 1,110 | 1,084 |
Orthodontic and Implant Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 252 | 247 | 781 | 772 |
Wellspect Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 72 | 66 | 212 | 208 |
Equipment & Instruments | Connected Technology Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 148 | 163 | 480 | 498 |
CAD/CAM | Connected Technology Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 128 | 123 | 370 | 377 |
Orthodontics | Orthodontic and Implant Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 83 | 76 | 255 | 220 |
Implants & Prosthetics | Orthodontic and Implant Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 169 | $ 171 | $ 526 | $ 552 |
REVENUE - REVENUE FROM EXTERNAL
REVENUE - REVENUE FROM EXTERNAL CUSTOMERS BY GEOGRAPHIC AREAS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 947 | $ 947 | $ 2,953 | $ 2,939 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 356 | 357 | 1,069 | 1,023 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 354 | 358 | 1,153 | 1,183 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 237 | $ 232 | $ 731 | $ 733 |
REVENUE - ADDITIONAL INFORMATIO
REVENUE - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue, accrued liabilities | $ 87 | $ 91 |
Deferred revenue, other noncurrent liabilities | 54 | 27 |
Deferred revenue recognized during the year | 59 | |
Allowance for doubtful accounts and trade discounts | $ 13 | $ 14 |
STOCK COMPENSATION (Details)
STOCK COMPENSATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 2 | $ 14 | $ 33 | $ 47 |
Related deferred income tax benefit | 2 | 1 | 5 | 4 |
Cost of products sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 1 | 1 | 3 | 2 |
Selling, general, and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 1 | 12 | 25 | 43 |
Research and development expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | 1 | 1 | 3 | 2 |
Restructuring and other costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ (1) | $ 0 | $ 2 | $ 0 |
COMPREHENSIVE INCOME (LOSS) - B
COMPREHENSIVE INCOME (LOSS) - BALANCES INCLUDED IN AOCI, NET OF TAX, IN THE CONSOLIDATED BALANCE SHEETS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | $ 3,702 | $ 3,638 | $ 3,812 | $ 4,838 | $ 4,864 | $ 4,997 | $ 3,812 | $ 4,997 |
Other comprehensive income (loss) before reclassifications and tax impact | (26) | (14) | 5 | (89) | (57) | (25) | ||
Tax benefit (expense) | (12) | 6 | 9 | (36) | (36) | (12) | ||
Other comprehensive income (loss), net of tax, before reclassifications | (38) | (8) | 14 | (125) | (93) | (37) | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1 | 2 | 0 | 0 | 3 | 0 | ||
Total other comprehensive loss, net of tax | (37) | (6) | 14 | (125) | (90) | (37) | (29) | (252) |
Ending Balance | 3,371 | 3,702 | 3,638 | 3,614 | 4,838 | 4,864 | 3,371 | 3,614 |
Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | (620) | (614) | (628) | (719) | (629) | (592) | (628) | (592) |
Total other comprehensive loss, net of tax | (37) | (6) | 14 | (125) | (90) | (37) | ||
Ending Balance | (657) | (620) | (614) | (844) | (719) | (629) | (657) | (844) |
Foreign Currency Translation Gain (Loss) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | (507) | (507) | (522) | (528) | (414) | (366) | (522) | (366) |
Other comprehensive income (loss) before reclassifications and tax impact | (60) | (3) | 6 | (120) | (86) | (37) | ||
Tax benefit (expense) | (4) | 3 | 9 | (28) | (28) | (11) | ||
Other comprehensive income (loss), net of tax, before reclassifications | (64) | 0 | 15 | (148) | (114) | (48) | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 0 | 0 | ||
Total other comprehensive loss, net of tax | (64) | 0 | 15 | (148) | (114) | (48) | ||
Ending Balance | (571) | (507) | (507) | (676) | (528) | (414) | (571) | (676) |
Gain (Loss) on Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | (16) | (18) | (17) | (16) | (14) | (16) | (17) | (16) |
Other comprehensive income (loss) before reclassifications and tax impact | 1 | 0 | (1) | 3 | (3) | 3 | ||
Tax benefit (expense) | 0 | 0 | 0 | (1) | 0 | 0 | ||
Other comprehensive income (loss), net of tax, before reclassifications | 1 | 0 | (1) | 2 | (3) | 3 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1 | 2 | 0 | (1) | 1 | (1) | ||
Total other comprehensive loss, net of tax | 2 | 2 | (1) | 1 | (2) | 2 | ||
Ending Balance | (14) | (16) | (18) | (15) | (16) | (14) | (14) | (15) |
Gain (Loss) on Net Investment and Fair Value Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | (81) | (73) | (73) | (71) | (95) | (103) | (73) | (103) |
Other comprehensive income (loss) before reclassifications and tax impact | 33 | (11) | 0 | 28 | 32 | 9 | ||
Tax benefit (expense) | (8) | 3 | 0 | (7) | (8) | (1) | ||
Other comprehensive income (loss), net of tax, before reclassifications | 25 | (8) | 0 | 21 | 24 | 8 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 0 | 0 | ||
Total other comprehensive loss, net of tax | 25 | (8) | 0 | 21 | 24 | 8 | ||
Ending Balance | (56) | (81) | (73) | (50) | (71) | (95) | (56) | (50) |
Pension Liability Gain (Loss) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Beginning Balance | (16) | (16) | (16) | (104) | (106) | (107) | (16) | (107) |
Other comprehensive income (loss) before reclassifications and tax impact | 0 | 0 | 0 | 0 | 0 | 0 | ||
Tax benefit (expense) | 0 | 0 | 0 | 0 | 0 | 0 | ||
Other comprehensive income (loss), net of tax, before reclassifications | 0 | 0 | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | 0 | 1 | 2 | 1 | ||
Total other comprehensive loss, net of tax | 0 | 0 | 0 | 1 | 2 | 1 | ||
Ending Balance | $ (16) | $ (16) | $ (16) | $ (103) | $ (104) | $ (106) | $ (16) | $ (103) |
COMPREHENSIVE INCOME (LOSS) - A
COMPREHENSIVE INCOME (LOSS) - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||||||||
Foreign currency tax adjustment | $ 103 | $ 100 | ||||||
Equity | 3,371 | $ 3,702 | $ 3,638 | 3,812 | $ 3,614 | $ 4,838 | $ 4,864 | $ 4,997 |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest, Translation Gain (Loss) | ||||||||
Derivative [Line Items] | ||||||||
Equity | (497) | (438) | ||||||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest, Net Investment Hedges | ||||||||
Derivative [Line Items] | ||||||||
Equity | $ (74) | $ (84) |
EARNINGS PER COMMON SHARE - EAR
EARNINGS PER COMMON SHARE - EARNINGS PER SHARE COMPUTATION (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic Earnings Per Common Share | ||||
Net loss attributable to Dentsply Sirona | $ (266) | $ (1,077) | $ (199) | $ (935) |
Weighted average common shares outstanding (in shares) | 211.8 | 214.9 | 212.7 | 215.6 |
Loss per common share - basic (in dollars per share) | $ (1.25) | $ (5.01) | $ (0.94) | $ (4.34) |
Diluted Earnings Per Common Share | ||||
Net loss attributable to Dentsply Sirona | $ (266) | $ (1,077) | $ (199) | $ (935) |
Weighted average common shares outstanding (in shares) | 211.8 | 214.9 | 212.7 | 215.6 |
Incremental weighted average shares from assumed exercise of dilutive options from stock-based compensation awards (in shares) | 0 | 0 | 0 | 0 |
Total weighted average diluted shares outstanding (in shares) | 211.8 | 214.9 | 212.7 | 215.6 |
(Loss) earnings per common share - diluted (in dollars per share) | $ (1.25) | $ (5.01) | $ (0.94) | $ (4.34) |
Weighted average shares excluded from diluted common shares outstanding due to reported net loss (in shares) | 1.1 | 0.3 | 1.1 | 0.5 |
Weighted average shares excluded from diluted common shares outstanding due to antidilutive nature (in shares) | 3 | 3.6 | 3.4 | 3.6 |
EARNINGS PER COMMON SHARE - ADD
EARNINGS PER COMMON SHARE - ADDITIONAL INFORMATION (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | |||||||||
Apr. 28, 2023 | Mar. 31, 2023 | Mar. 06, 2023 | Mar. 03, 2023 | Mar. 31, 2023 | Apr. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Jul. 28, 2021 | |
Earnings Per Share [Abstract] | ||||||||||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | |||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 590,000,000 | |||||||||||
Shares received (in shares) | 3.1 | 3.1 | 3.1 | 0.8 | 3.1 | |||||||
Price per share (in dollars per share) | $ 38.74 | $ 38.74 | ||||||||||
Amount Paid | $ 150,000,000 | $ 120,000,000 | $ 120,000,000 | $ 120,000,000 | ||||||||
Total shares received (in shares) | 3.9 | 3.9 | ||||||||||
Accelerated share repurchases, delivery of common shares | $ 121,000,000 | |||||||||||
Accelerated share repurchases, excise tax amount | $ 1,000,000 | |||||||||||
Accelerated share repurchase | $ 30,000,000 | $ 0 | $ (151,000,000) | $ 0 | $ (150,000,000) |
EARNINGS PER COMMON SHARE - ACC
EARNINGS PER COMMON SHARE - ACCELERATED SHARE REPURCHASE PROGRAM (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 2 Months Ended | ||
Apr. 28, 2023 | Mar. 03, 2023 | Mar. 31, 2023 | Apr. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Amount Paid | $ 150 | $ 120 | ||
Initial Delivery | ||||
Shares received (in shares) | 3.1 | 3.1 | 0.8 | |
Price per share (in dollars per share) | $ 38.74 | $ 38.74 | ||
Value of Shares as a % of Contract Value | 80% | |||
Final Settlement | ||||
Total shares received (in shares) | 3.9 | 3.9 | ||
Average price per share (in dollars per share) | $ 38.55 |
SEGMENT INFORMATION - ADDITIONA
SEGMENT INFORMATION - ADDITIONAL INFORMATION (Details) - segment | 9 Months Ended | |
Feb. 14, 2023 | Sep. 30, 2023 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 4 | 4 |
SEGMENT INFORMATION - THIRD PAR
SEGMENT INFORMATION - THIRD PARTY NET SALES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue, Major Customer [Line Items] | ||||
Net sales | $ 947 | $ 947 | $ 2,953 | $ 2,939 |
Connected Technology Solutions | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 276 | 286 | 850 | 875 |
Essential Dental Solutions | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 347 | 348 | 1,110 | 1,084 |
Orthodontic and Implant Solutions | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 252 | 247 | 781 | 772 |
Wellspect Healthcare | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | $ 72 | $ 66 | $ 212 | $ 208 |
SEGMENT INFORMATION - SEGMENT A
SEGMENT INFORMATION - SEGMENT ADJUSTED OPERATING INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment adjusted operating income | $ (236) | $ (1,218) | $ (158) | $ (1,002) |
Goodwill and intangible asset impairments | 307 | 1,281 | 307 | 1,281 |
Restructuring and other costs | 6 | 3 | 70 | 13 |
Other (income) expense, net | (4) | 9 | 16 | 20 |
Amortization of intangible assets | 159 | 159 | ||
Loss before income taxes | (250) | (1,241) | (232) | (1,063) |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment adjusted operating income | 194 | 194 | 613 | 676 |
Operating Segments | Connected Technology Solutions | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment adjusted operating income | 22 | 25 | 54 | 101 |
Operating Segments | Essential Dental Solutions | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment adjusted operating income | 115 | 110 | 365 | 361 |
Operating Segments | Orthodontic and Implant Solutions | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment adjusted operating income | 31 | 40 | 129 | 157 |
Operating Segments | Wellspect Healthcare | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment adjusted operating income | 26 | 19 | 65 | 57 |
All Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
All other | 63 | 77 | 233 | 223 |
Segment Reconciling Items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Goodwill and intangible asset impairments | 307 | 1,281 | 307 | 1,281 |
Restructuring and other costs | 6 | 3 | 70 | 13 |
Interest expense, net | 18 | 14 | 58 | 41 |
Other (income) expense, net | (4) | 9 | 16 | 20 |
Amortization of intangible assets | 53 | 51 | 159 | 159 |
Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations | $ 1 | $ 0 | $ 2 | $ 2 |
INVENTORIES - SUMMARY OF INVENT
INVENTORIES - SUMMARY OF INVENTORY (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 173 | $ 169 |
Work-in-process | 83 | 77 |
Finished goods | 395 | 381 |
Inventories, net | $ 651 | $ 627 |
INVENTORIES - ADDITIONAL INFORM
INVENTORIES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory valuation reserve | $ 105 | $ 83 |
RESTRUCTURING AND OTHER COSTS -
RESTRUCTURING AND OTHER COSTS - CONSOLIDATED STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other costs | $ 7 | $ 3 | $ 76 | $ 13 |
Cost of products sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other costs | 0 | 0 | 4 | 0 |
Selling, general, and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other costs | 1 | 0 | 2 | 0 |
Restructuring and other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other costs | $ 6 | $ 3 | $ 70 | $ 13 |
RESTRUCTURING AND OTHER COSTS_2
RESTRUCTURING AND OTHER COSTS - ADDITIONAL INFORMATION (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Feb. 14, 2023 USD ($) segment | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring and other costs | $ 7 | $ 3 | $ 76 | $ 13 | |
Number of operating segments | segment | 4 | 4 | |||
Non-Recurring Restructuring Activity | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost | $ 35 | ||||
Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, number of positions eliminated, period percent | 8% | ||||
Restructuring and related cost, expected cost | $ 115 | ||||
Minimum | Restructuring Expenditures And Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost | $ 80 | ||||
Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, number of positions eliminated, period percent | 10% | ||||
Restructuring and related cost, expected cost | $ 135 | ||||
Maximum | Restructuring Expenditures And Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost | $ 100 | ||||
Restructuring and other costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring and other costs | $ 6 | $ 3 | $ 70 | $ 13 |
RESTRUCTURING AND OTHER COSTS_3
RESTRUCTURING AND OTHER COSTS - RESTRUCTURING ACCURALS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 8 | |||
Provisions | $ 6 | $ 3 | 70 | $ 13 |
Amounts applied | (31) | |||
Change in estimates | 4 | |||
Ending Balance | 47 | 47 | ||
Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 7 | |||
Provisions | 58 | |||
Amounts applied | (23) | |||
Change in estimates | 4 | |||
Ending Balance | 46 | 46 | ||
Severance | 2022 and Prior Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 7 | |||
Provisions | 2 | |||
Amounts applied | (4) | |||
Change in estimates | (2) | |||
Ending Balance | 3 | 3 | ||
Severance | 2023 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | |||
Provisions | 56 | |||
Amounts applied | (19) | |||
Change in estimates | 6 | |||
Ending Balance | 43 | 43 | ||
Other Restructuring Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 1 | |||
Provisions | 8 | |||
Amounts applied | (8) | |||
Ending Balance | 1 | 1 | ||
Other Restructuring Costs | 2022 and Prior Plans | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 1 | |||
Provisions | 1 | |||
Amounts applied | (1) | |||
Ending Balance | 1 | 1 | ||
Other Restructuring Costs | 2023 Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | |||
Provisions | 7 | |||
Amounts applied | (7) | |||
Ending Balance | $ 0 | $ 0 |
RESTRUCTURING AND OTHER COSTS_4
RESTRUCTURING AND OTHER COSTS - PROVISIONS AND ADJUSTMENTS AND AMOUNTS APPLIED FOR ALL PLANS BY SEGMENT (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 8 |
Provisions | 66 |
Amounts applied | (31) |
Change in estimates | 4 |
Ending Balance | 47 |
Operating Segments | Connected Technology Solutions | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 3 |
Provisions | 15 |
Amounts applied | (6) |
Change in estimates | 6 |
Ending Balance | 18 |
Operating Segments | Essential Dental Solutions | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 4 |
Provisions | 23 |
Amounts applied | (8) |
Change in estimates | (1) |
Ending Balance | 18 |
Operating Segments | Orthodontic and Implant Solutions | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 1 |
Provisions | 14 |
Amounts applied | (4) |
Change in estimates | 0 |
Ending Balance | 11 |
Operating Segments | Wellspect Healthcare | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 0 |
Provisions | 4 |
Amounts applied | (3) |
Change in estimates | 0 |
Ending Balance | 1 |
All Other | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 0 |
Provisions | 10 |
Amounts applied | (10) |
Change in estimates | (1) |
Ending Balance | $ (1) |
FINANCIAL INSTRUMENTS AND DER_3
FINANCIAL INSTRUMENTS AND DERIVATIVES - SUMMARY OF DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Jul. 01, 2021 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | $ 470 | |
Aggregate Notional Amount Maturing within 12 Months | 470 | |
Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 46 | |
Aggregate Notional Amount Maturing within 12 Months | 46 | |
Hedges of Net Investments | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 1,107 | |
Aggregate Notional Amount Maturing within 12 Months | 85 | |
Fair Value Hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 300 | |
Aggregate Notional Amount Maturing within 12 Months | 50 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | $ 250 | |
Interest rate swaps | Fair Value Hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 250 | |
Aggregate Notional Amount Maturing within 12 Months | 0 | |
Foreign exchange forward contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 470 | |
Aggregate Notional Amount Maturing within 12 Months | 470 | |
Foreign exchange forward contracts | Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 46 | |
Aggregate Notional Amount Maturing within 12 Months | 46 | |
Foreign exchange forward contracts | Hedges of Net Investments | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 825 | |
Aggregate Notional Amount Maturing within 12 Months | 85 | |
Foreign exchange forward contracts | Fair Value Hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 50 | |
Aggregate Notional Amount Maturing within 12 Months | 50 | |
Cross currency basis swaps | Hedges of Net Investments | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 282 | |
Aggregate Notional Amount Maturing within 12 Months | $ 0 |
FINANCIAL INSTRUMENTS AND DER_4
FINANCIAL INSTRUMENTS AND DERIVATIVES - ADDITIONAL INFORMATION (Details) € in Millions, SFr in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jul. 01, 2021 USD ($) | May 26, 2020 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Nov. 02, 2023 CHF (SFr) | Sep. 30, 2023 EUR (€) | Jul. 20, 2023 CHF (SFr) | Jul. 02, 2021 USD ($) | May 25, 2021 EUR (€) derivative_instrument | |
Derivative [Line Items] | |||||||||||||
Net loss on derivative financial instruments | $ (27,000,000) | $ (22,000,000) | $ (20,000,000) | $ (54,000,000) | |||||||||
Cash received on derivative contracts | 39,000,000 | $ 10,000,000 | |||||||||||
Senior Unsecured Notes Maturing June 1, 2030 | Senior Notes | |||||||||||||
Derivative [Line Items] | |||||||||||||
Debt instrument, face amount | $ 750,000,000 | $ 750,000,000 | |||||||||||
Debt instrument, interest rate, stated percentage | 3.30% | 1.70% | |||||||||||
Cash Flow Hedges | Designated as Hedging Instrument | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | $ 46,000,000 | 46,000,000 | 46,000,000 | ||||||||||
Hedges of Net Investments | Designated as Hedging Instrument | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | 1,107,000,000 | 1,107,000,000 | $ 1,107,000,000 | ||||||||||
Foreign exchange forward contracts | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, term of contract | 18 months | ||||||||||||
Foreign exchange forward contracts | Hedges of Net Investments | Designated as Hedging Instrument | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | € 160 | SFr 600 | € 10 | ||||||||||
Foreign exchange forward contracts | derivative_instrument | 8 | ||||||||||||
Cash received on derivative contracts | 32,000,000 | ||||||||||||
Foreign exchange forward contracts | Hedges of Net Investments | Designated as Hedging Instrument | Subsequent Event | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | SFr | SFr 600 | ||||||||||||
Treasury Lock | Cash Flow Hedges | |||||||||||||
Derivative [Line Items] | |||||||||||||
Repayments of debt | 31,000,000 | ||||||||||||
Derivative, notional amount | $ 150,000,000 | ||||||||||||
Long-term debt, term | 10 years | ||||||||||||
Net loss on derivative financial instruments | $ 21,000,000 | $ 23,000,000 | |||||||||||
Cross currency basis swaps | Designated as Hedging Instrument | |||||||||||||
Derivative [Line Items] | |||||||||||||
Cash flow hedge loss to be reclassified within 12 months | 3,000,000 | ||||||||||||
Cross currency basis swaps | Hedges of Net Investments | Designated as Hedging Instrument | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | $ 282,000,000 | $ 282,000,000 | $ 282,000,000 | ||||||||||
Cross Currency Interest Rate Contract | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | $ 300,000,000 | ||||||||||||
Interest rate swaps | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | $ 250,000,000 | ||||||||||||
Interest Rate Swap Maturing June 1, 2026 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, term of contract | 5 years | ||||||||||||
Derivative, notional amount | $ 100,000,000 | ||||||||||||
Interest Rate Swap Maturing March 1, 2030 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, term of contract | 9 years | ||||||||||||
Derivative, notional amount | $ 150,000,000 |
FINANCIAL INSTRUMENTS AND DER_5
FINANCIAL INSTRUMENTS AND DERIVATIVES - DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cost of products sold | $ 452 | $ 439 | $ 1,389 | $ 1,329 |
Interest expense, net | 18 | 14 | 58 | 41 |
Other (income) expense, net | (4) | 9 | 16 | 20 |
Cross currency basis swaps | (Gain) loss on Hedges of Net Investment | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Cross currency basis swaps | (Gain) loss on Hedges of Net Investment | Designated as Hedging Instrument | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | 0 | 0 | 0 | 0 |
Cross currency basis swaps | (Gain) loss on Hedges of Net Investment | Designated as Hedging Instrument | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | (1) | (2) | (3) | (4) |
Cross currency basis swaps | (Gain) loss on Hedges of Net Investment | Designated as Hedging Instrument | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | (Gain) loss on Cash Flow Hedges reclassified from AOCI into income | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | (1) | 1 | (1) | 3 |
Foreign exchange forward contracts | (Gain) loss on Cash Flow Hedges reclassified from AOCI into income | Designated as Hedging Instrument | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 1 | (1) | 1 | (3) |
Foreign exchange forward contracts | (Gain) loss on Cash Flow Hedges reclassified from AOCI into income | Designated as Hedging Instrument | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | (Gain) loss on Cash Flow Hedges reclassified from AOCI into income | Designated as Hedging Instrument | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | (Gain) loss on Hedges of Net Investment | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | (Gain) loss on Hedges of Net Investment | Designated as Hedging Instrument | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | (Gain) loss on Hedges of Net Investment | Designated as Hedging Instrument | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | (Gain) loss on Hedges of Net Investment | Designated as Hedging Instrument | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | (5) | 0 | (6) | (1) |
Foreign exchange forward contracts | (Gain) loss on Fair Value Hedges: | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | (Gain) loss on Fair Value Hedges: | Designated as Hedging Instrument | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | (Gain) loss on Fair Value Hedges: | Designated as Hedging Instrument | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | (Gain) loss on Fair Value Hedges: | Designated as Hedging Instrument | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | (1) | (13) | (4) | (37) |
Interest rate swaps | (Gain) loss on Cash Flow Hedges reclassified from AOCI into income | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | (2) | (2) |
Interest rate swaps | (Gain) loss on Cash Flow Hedges reclassified from AOCI into income | Designated as Hedging Instrument | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Interest rate swaps | (Gain) loss on Cash Flow Hedges reclassified from AOCI into income | Designated as Hedging Instrument | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | 2 | 2 |
Interest rate swaps | (Gain) loss on Cash Flow Hedges reclassified from AOCI into income | Designated as Hedging Instrument | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Interest rate swaps | (Gain) loss on Fair Value Hedges: | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Interest rate swaps | (Gain) loss on Fair Value Hedges: | Designated as Hedging Instrument | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | 0 | 0 | 0 | 0 |
Interest rate swaps | (Gain) loss on Fair Value Hedges: | Designated as Hedging Instrument | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | 3 | 1 | 8 | 0 |
Interest rate swaps | (Gain) loss on Fair Value Hedges: | Designated as Hedging Instrument | Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) loss on hedges of net investment and fair value hedges | $ 0 | $ 0 | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS AND DER_6
FINANCIAL INSTRUMENTS AND DERIVATIVES - GAIN (LOSS) RECORDED IN AOCI IN THE CONSOLIDATED STATEMENTS OF OPERATIONS (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Foreign exchange forward contracts | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in AOCI | $ 1 | $ 3 | $ 0 | $ 3 |
Effective Portion Reclassified from AOCI into Income (Expense) | (1) | 1 | (1) | 3 |
Foreign exchange forward contracts | Hedges of Net Investments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in AOCI | 29 | 11 | 26 | 24 |
Effective Portion Reclassified from AOCI into Income (Expense) | 0 | 0 | 0 | 0 |
Foreign exchange forward contracts | Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in AOCI | 1 | (1) | 2 | (2) |
Effective Portion Reclassified from AOCI into Income (Expense) | 0 | 0 | 0 | 0 |
Cross currency basis swaps | Hedges of Net Investments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in AOCI | 3 | 18 | (6) | 47 |
Effective Portion Reclassified from AOCI into Income (Expense) | 0 | 0 | 0 | 0 |
Interest rate swaps | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in AOCI | 0 | 0 | 0 | 0 |
Effective Portion Reclassified from AOCI into Income (Expense) | 0 | 0 | (2) | (2) |
Interest rate swaps | Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in AOCI | 0 | 0 | 0 | 0 |
Effective Portion Reclassified from AOCI into Income (Expense) | $ 0 | $ 0 | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS AND DER_7
FINANCIAL INSTRUMENTS AND DERIVATIVES - BALANCE SHEET ALLOCATION (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | $ 56 | $ 64 |
Gross liability amount recognized for derivative instruments designated as hedges | $ 49 | $ 46 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets, Prepaid expenses and other current assets | Other noncurrent assets, Prepaid expenses and other current assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current, Other Liabilities, Noncurrent | Accrued Liabilities, Current, Other Liabilities, Noncurrent |
Interest rate swaps | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | $ 37 | $ 34 |
Cross currency basis swaps | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 20 | 26 |
Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 30 | 36 |
Gross asset amount recognized for derivative instruments not designated as hedges | 8 | 3 |
Prepaid Expenses and Other Current Assets | Foreign exchange forward contracts | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 27 | 32 |
Prepaid Expenses and Other Current Assets | Foreign exchange forward contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments not designated as hedges | 8 | 3 |
Prepaid Expenses and Other Current Assets | Interest rate swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 0 | 0 |
Prepaid Expenses and Other Current Assets | Cross currency basis swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 3 | 4 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 18 | 25 |
Gross asset amount recognized for derivative instruments not designated as hedges | 0 | 0 |
Other Noncurrent Assets | Foreign exchange forward contracts | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 1 | 3 |
Other Noncurrent Assets | Foreign exchange forward contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments not designated as hedges | 0 | 0 |
Other Noncurrent Assets | Interest rate swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 0 | 0 |
Other Noncurrent Assets | Cross currency basis swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross asset amount recognized for derivative instruments designated as hedges | 17 | 22 |
Accrued Liabilities | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 17 | 14 |
Gross liability amount recognized for derivative instruments not designated as hedges | 3 | 5 |
Accrued Liabilities | Foreign exchange forward contracts | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 5 | 5 |
Accrued Liabilities | Foreign exchange forward contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments not designated as hedges | 3 | 5 |
Accrued Liabilities | Interest rate swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 12 | 9 |
Accrued Liabilities | Cross currency basis swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 0 | 0 |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 29 | 27 |
Gross liability amount recognized for derivative instruments not designated as hedges | 0 | 0 |
Other Noncurrent Liabilities | Foreign exchange forward contracts | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 4 | 2 |
Other Noncurrent Liabilities | Foreign exchange forward contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments not designated as hedges | 0 | 0 |
Other Noncurrent Liabilities | Interest rate swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | 25 | 25 |
Other Noncurrent Liabilities | Cross currency basis swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Gross liability amount recognized for derivative instruments designated as hedges | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS AND DER_8
FINANCIAL INSTRUMENTS AND DERIVATIVES - BALANCE SHEET OFFSETTING (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Gross Amounts Recognized | $ 56 | $ 64 |
Gross Amount Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 56 | 64 |
Financial Instruments | (13) | (19) |
Cash Collateral Received/Pledged | 0 | 0 |
Net Amount | 43 | 45 |
Liabilities | ||
Gross Amounts Recognized | 49 | 46 |
Gross Amount Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 49 | 46 |
Financial Instruments | (13) | (19) |
Cash Collateral Received/Pledged | 0 | 0 |
Net Amount | 36 | 27 |
Foreign exchange forward contracts | ||
Assets | ||
Gross Amounts Recognized | 36 | 38 |
Gross Amount Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 36 | 38 |
Financial Instruments | (5) | (7) |
Cash Collateral Received/Pledged | 0 | 0 |
Net Amount | 31 | 31 |
Liabilities | ||
Gross Amounts Recognized | 12 | 12 |
Gross Amount Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 12 | 12 |
Financial Instruments | (6) | (10) |
Cash Collateral Received/Pledged | 0 | 0 |
Net Amount | 6 | 2 |
Cross currency basis swaps | ||
Assets | ||
Gross Amounts Recognized | 20 | 26 |
Gross Amount Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 20 | 26 |
Financial Instruments | (8) | (12) |
Cash Collateral Received/Pledged | 0 | 0 |
Net Amount | 12 | 14 |
Interest rate swaps | ||
Liabilities | ||
Gross Amounts Recognized | 37 | 34 |
Gross Amount Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 37 | 34 |
Financial Instruments | (7) | (9) |
Cash Collateral Received/Pledged | 0 | 0 |
Net Amount | $ 30 | $ 25 |
FAIR VALUE MEASUREMENT - ADDITI
FAIR VALUE MEASUREMENT - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,817 | $ 1,769 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,989 | $ 1,944 |
FAIR VALUE MEASUREMENT - ASSETS
FAIR VALUE MEASUREMENT - ASSETS AND LIABILITIES, RECURRING (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | $ 56 | $ 64 |
Derivative liabilities | 49 | 46 |
Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 56 | 64 |
Liabilities | 53 | 50 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 56 | 64 |
Liabilities | 49 | 46 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 4 | 4 |
Cross currency basis swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 20 | 26 |
Cross currency basis swaps | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 20 | 26 |
Cross currency basis swaps | Fair Value, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Cross currency basis swaps | Fair Value, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 20 | 26 |
Cross currency basis swaps | Fair Value, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Interest rate swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 37 | 34 |
Interest rate swaps | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 37 | 34 |
Interest rate swaps | Fair Value, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Interest rate swaps | Fair Value, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 37 | 34 |
Interest rate swaps | Fair Value, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | 0 | 0 |
Foreign exchange forward contracts | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 36 | 38 |
Derivative liabilities | 12 | 12 |
Foreign exchange forward contracts | Fair Value, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Foreign exchange forward contracts | Fair Value, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 36 | 38 |
Derivative liabilities | 12 | 12 |
Foreign exchange forward contracts | Fair Value, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Contingent considerations on acquisitions | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent considerations on acquisitions | 4 | 4 |
Contingent considerations on acquisitions | Fair Value, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent considerations on acquisitions | 0 | 0 |
Contingent considerations on acquisitions | Fair Value, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent considerations on acquisitions | 0 | 0 |
Contingent considerations on acquisitions | Fair Value, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent considerations on acquisitions | $ 4 | $ 4 |
INCOME TAXES - ADDITIONAL INFOR
INCOME TAXES - ADDITIONAL INFORMATION (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | (6.30%) | 13.20% | 12.10% | 12.10% |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) - USD ($) | Sep. 30, 2023 | May 12, 2023 | May 11, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||||
Borrowings available under lines of credit | $ 562,000,000 | |||
Notes payable and current portion of long-term debt | 187,000,000 | $ 118,000,000 | ||
Other short-term borrowings | $ 21,000,000 | |||
Debt, weighted average interest rate | 5.50% | |||
Commercial Paper | ||||
Line of Credit Facility [Line Items] | ||||
Notes payable and current portion of long-term debt | $ 165,000,000 | 95,000,000 | ||
Uncommitted Short-Term Financing | ||||
Line of Credit Facility [Line Items] | ||||
Notes payable and current portion of long-term debt | 48,000,000 | |||
Revolving Credit Facility | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt, term | 5 years | 5 years | ||
Maximum borrowing capacity | $ 700,000,000 | $ 700,000,000 | ||
Notes payable and current portion of long-term debt | 0 | $ 0 | ||
Commercial Paper | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 500,000,000 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - ADDITIONAL INFORMATION (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2023 USD ($) yr | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Goodwill [Line Items] | ||||||||
Underlying market interest rate increase | 0.0110 | |||||||
Goodwill impairment | $ 291 | $ 291 | $ 1,187 | |||||
Goodwill | 2,374 | 2,374 | $ 2,703 | $ 2,701 | $ 2,688 | |||
Indefinite-lived intangible asset impairment | 16 | $ 94 | ||||||
Indefinite-lived tradenames and trademarks | 431 | 431 | 455 | |||||
Developed technology and patents | ||||||||
Goodwill [Line Items] | ||||||||
Payments to acquire intangible assets | $ 3 | |||||||
Asset acquisition, contingent consideration, liability | 17 | 17 | ||||||
Connected Technology Solutions | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill impairment | 291 | 291 | ||||||
Goodwill | 0 | 0 | 293 | 0 | 0 | |||
Indefinite-lived intangible asset impairment | 14 | |||||||
Indefinite-lived tradenames and trademarks | 27 | 27 | ||||||
Orthodontic and Implant Solutions | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill impairment | 0 | |||||||
Goodwill | 1,279 | 1,279 | 1,298 | 0 | 0 | |||
Indefinite-lived intangible asset impairment | 2 | |||||||
Essential Dental Solutions | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill impairment | 0 | |||||||
Goodwill | 829 | 829 | $ 836 | $ 0 | $ 0 | |||
Indefinite-lived tradenames and trademarks | 7 | $ 7 | ||||||
Unimpaired Reporting Unit | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill impairment, sensitivity analysis, hypothetical increase in discount rate | 0.0100 | |||||||
Goodwill | $ 1,133 | $ 1,133 | ||||||
Indefinite-lived intangible asset impairment, sensitivity analysis, hypothetical increase in discount rate | 0.0100 | |||||||
Digital Dental Group | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill impairment | $ 1,100 | |||||||
Indefinite-lived intangible asset impairment | 66 | |||||||
Equipment & Instruments | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill impairment | 87 | |||||||
Indefinite-lived intangible asset impairment | 26 | |||||||
Consumables | ||||||||
Goodwill [Line Items] | ||||||||
Indefinite-lived intangible asset impairment | $ 2 | |||||||
Measurement Input, Perpetual Growth Rate | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill, measurement input | yr | 10 | |||||||
Measurement Input, Discount Rate | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill, measurement input | 0.115 | |||||||
Minimum | Measurement Input, Discount Rate | ||||||||
Goodwill [Line Items] | ||||||||
Indefinite lived intangible asset, discount rate | 0.115 | |||||||
Maximum | Measurement Input, Discount Rate | ||||||||
Goodwill [Line Items] | ||||||||
Indefinite lived intangible asset, discount rate | 0.165 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - RECONCILIATION OF CHANGES IN GOODWILL (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||||||
Goodwill | $ 2,665 | $ 6,781 | $ 2,665 | $ 6,768 | ||
Accumulated impairment losses | (291) | (4,080) | (291) | (4,080) | ||
Goodwill, net, beginning of the year | 2,703 | $ 2,701 | 2,688 | 2,688 | ||
Realignment of goodwill | 0 | |||||
Impairment | (291) | (291) | $ (1,187) | |||
Translation | (38) | 2 | 13 | |||
Goodwill, net, end of the year | 2,374 | 2,703 | 2,701 | 2,374 | ||
Technologies & Equipment | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 0 | 5,911 | 0 | 5,902 | ||
Accumulated impairment losses | 0 | (4,080) | 0 | (4,080) | ||
Goodwill, net, beginning of the year | 0 | 1,831 | 1,822 | 1,822 | ||
Realignment of goodwill | (1,831) | |||||
Impairment | 0 | |||||
Translation | 0 | 0 | 9 | |||
Goodwill, net, end of the year | 0 | 0 | 1,831 | 0 | ||
Consumables | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 0 | 870 | 0 | 866 | ||
Accumulated impairment losses | 0 | 0 | 0 | 0 | ||
Goodwill, net, beginning of the year | 0 | 870 | 866 | 866 | ||
Realignment of goodwill | (870) | |||||
Impairment | 0 | |||||
Translation | 0 | 0 | 4 | |||
Goodwill, net, end of the year | 0 | 0 | 870 | 0 | ||
Connected Technology Solutions | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 291 | 0 | 291 | 0 | ||
Accumulated impairment losses | (291) | 0 | (291) | 0 | ||
Goodwill, net, beginning of the year | 293 | 0 | 0 | 0 | ||
Realignment of goodwill | 293 | |||||
Impairment | (291) | (291) | ||||
Translation | (2) | 0 | 0 | |||
Goodwill, net, end of the year | 0 | 293 | 0 | 0 | ||
Essential Dental Solutions | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 829 | 0 | 829 | 0 | ||
Accumulated impairment losses | 0 | 0 | 0 | 0 | ||
Goodwill, net, beginning of the year | 836 | 0 | 0 | 0 | ||
Realignment of goodwill | 835 | |||||
Impairment | 0 | |||||
Translation | (7) | 1 | 0 | |||
Goodwill, net, end of the year | 829 | 836 | 0 | 829 | ||
Orthodontic and Implant Solutions | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 1,279 | 0 | 1,279 | 0 | ||
Accumulated impairment losses | 0 | 0 | 0 | 0 | ||
Goodwill, net, beginning of the year | 1,298 | 0 | 0 | 0 | ||
Realignment of goodwill | 1,303 | |||||
Impairment | 0 | |||||
Translation | (19) | (5) | 0 | |||
Goodwill, net, end of the year | 1,279 | 1,298 | 0 | 1,279 | ||
Wellspect Healthcare | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 266 | 0 | 266 | 0 | ||
Accumulated impairment losses | 0 | 0 | 0 | $ 0 | ||
Goodwill, net, beginning of the year | 276 | 0 | 0 | 0 | ||
Realignment of goodwill | 270 | |||||
Impairment | 0 | |||||
Translation | (10) | 6 | 0 | |||
Goodwill, net, end of the year | $ 266 | $ 276 | $ 0 | $ 266 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - IDENTIFIABLE DEFINITE-LIVED AND INDEFINITE-LIVED INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,986 | $ 3,018 |
Accumulated Amortization | (1,706) | (1,570) |
Net Carrying Amount | 1,280 | 1,448 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived tradenames and trademarks | 431 | 455 |
Total identifiable intangible assets | ||
Gross Carrying Amount | 3,417 | 3,473 |
Identifiable intangible assets, net | 1,711 | 1,903 |
Indefinite-lived tradenames and trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived tradenames and trademarks | 426 | 450 |
In-process R&D | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived tradenames and trademarks | 5 | 5 |
Developed technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,648 | 1,658 |
Accumulated Amortization | (939) | (848) |
Net Carrying Amount | 709 | 810 |
Indefinite-lived tradenames and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 271 | 273 |
Accumulated Amortization | (98) | (96) |
Net Carrying Amount | 173 | 177 |
Licensing agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 29 | 30 |
Accumulated Amortization | (27) | (26) |
Net Carrying Amount | 2 | 4 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,038 | 1,057 |
Accumulated Amortization | (642) | (600) |
Net Carrying Amount | $ 396 | $ 457 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - ADDITIONAL INFORMATION (Details) € in Millions | 2 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 21, 2023 EUR (€) | Aug. 09, 2018 lawsuit distributor | Sep. 30, 2023 USD ($) lawsuit | Dec. 31, 2016 USD ($) | |
Loss Contingencies [Line Items] | ||||
Loss contingency, claims settled, number | lawsuit | 3 | |||
Loss contingency, new claims filed, number | lawsuit | 2 | |||
Loss contingency, number of distributors allegedly engaged in anticompetitive conduct | distributor | 3 | |||
Income tax penalties | $ 546,000,000 | |||
Distribution amount | $ 451,000,000 | |||
IRS | Tax Year 2012 | ||||
Loss Contingencies [Line Items] | ||||
Liability (refund) from income tax examination | (5,000,000) | |||
IRS | Tax Year 2013 | ||||
Loss Contingencies [Line Items] | ||||
Liability (refund) from income tax examination | 0 | |||
IRS | Tax Year 2014 | ||||
Loss Contingencies [Line Items] | ||||
Liability (refund) from income tax examination | $ 17,000,000 | |||
Mr. Carlo Gobbetti Litigation | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | € | € 28 | |||
Escrow deposit | € | 7 | |||
Loss contingency, punitive damages sought | € | € 21 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - PURCHASE COMMITMENTS (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 58 |
2024 | 174 |
2025 | 56 |
2026 | 57 |
2027 | 1 |
Thereafter | 0 |
Total | $ 346 |