CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Income Statement [Abstract] | |||
Net sales | $2,159,916 | $2,193,723 | $2,009,833 |
Cost of products sold | 1,048,612 | 1,041,779 | 969,050 |
Gross profit | 1,111,304 | 1,151,944 | 1,040,783 |
Selling, general and administrative expenses | 723,227 | 739,168 | 675,365 |
Restructuring, impairments and other costs | 6,890 | 32,355 | 10,527 |
Operating income | 381,187 | 380,421 | 354,891 |
Other income and expenses: | |||
Interest expense | 21,896 | 32,527 | 23,783 |
Interest income | (5,032) | (17,089) | (26,428) |
Other expense (income), net | 967 | 10,110 | (656) |
Income before income taxes | 363,356 | 354,873 | 358,192 |
Provision for income taxes | 88,944 | 71,603 | 98,481 |
Net income | 274,412 | 283,270 | 259,711 |
Less: Net income (loss) attributable to noncontrolling interests | 154 | (599) | 57 |
Net income attributable to DENTSPLY International | $274,258 | $283,869 | $259,654 |
Earnings per common share | |||
Basic | 1.85 | 1.9 | 1.71 |
Diluted | 1.83 | 1.87 | 1.68 |
Cash dividends declared per common share | 0.2 | 0.185 | 0.165 |
Weighted average common shares outstanding | |||
Basic | 148,319 | 149,069 | 151,707 |
Diluted | 150,102 | 151,679 | 154,721 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands | Dec. 31, 2009
| Dec. 31, 2008
|
Current Assets: | ||
Cash and cash equivalents | $450,348 | $203,991 |
Short-term investments | 37 | 258 |
Accounts and notes receivable-trade, net | 348,684 | 319,260 |
Inventories, net | 291,640 | 306,125 |
Prepaid expenses and other current assets | 127,087 | 120,228 |
Total Current Assets | 1,217,796 | 949,862 |
Property, plant and equipment, net | 439,619 | 432,276 |
Identifiable intangible assets, net | 89,086 | 103,718 |
Goodwill, net | 1,312,596 | 1,277,026 |
Other noncurrent assets, net | 28,835 | 67,518 |
Total Assets | 3,087,932 | 2,830,400 |
Current Liabilities: | ||
Accounts payable | 100,847 | 104,329 |
Accrued liabilities | 249,169 | 193,660 |
Income taxes payable | 12,366 | 36,178 |
Notes payable and current portion of long-term debt | 82,174 | 25,795 |
Total Current Liabilities | 444,556 | 359,962 |
Long-term debt | 387,151 | 423,679 |
Deferred income taxes | 72,524 | 69,049 |
Other noncurrent liabilities | 276,743 | 318,297 |
Total Liabilities | 1,180,974 | 1,170,987 |
Equity: | ||
Preferred stock, $.01 par value; .25 million shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value; 200 million shares authorized; 162.8 million shares issued at December 31, 2009 and December 31, 2008 | 1,628 | 1,628 |
Capital in excess of par value | 195,495 | 187,154 |
Retained earnings | 2,083,459 | 1,838,958 |
Accumulated other comprehensive income | 83,542 | 39,612 |
Treasury stock, at cost, 15.8 million shares at December 31, 2009 and 14.2 million shares at December 31, 2008 | (532,019) | (479,630) |
Total DENTSPLY International Equity | 1,832,105 | 1,587,722 |
Noncontrolling interests | 74,853 | 71,691 |
Total Equity | 1,906,958 | 1,659,413 |
Total Liabilities and Equity | $3,087,932 | $2,830,400 |
PARENTHETICAL DATA FOR CONSOLID
PARENTHETICAL DATA FOR CONSOLIDATED BALANCE SHEETS (USD $) | ||
Share data in Millions, except Per Share data | Dec. 31, 2009
| Dec. 31, 2008
|
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | 0.01 | 0.01 |
Preferred stock, shares authorized (in shares) | 0.25 | 0.25 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollar per share) | 0.01 | 0.01 |
Common stock, share authorized (in shares) | 200 | 200 |
Common stock, shares issued (in shares) | 162.8 | 162.8 |
Treasury stock, shares (in shares) | 15.8 | 14.2 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Balance, Beginning | $1,659,413 | $1,516,402 | $1,274,074 |
Purchase of subsidiary shares from noncontrolling interest | 71,931 | ||
Comprehensive Income: | |||
Net income | 274,412 | 283,270 | 259,711 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 53,574 | (71,458) | 106,231 |
Unrealized loss on available-for-sale securities | (333) | ||
Net loss on derivative financial instruments | (13,960) | (13,986) | (53,790) |
Pension liability adjustments | 7,324 | (20,700) | 13,797 |
Comprehensive Income | 321,350 | 177,126 | 325,616 |
Exercise of stock options | 13,406 | 12,726 | 45,594 |
Tax benefit from stock options exercised | 3,505 | 3,910 | 11,378 |
Share based compensation expense | 16,276 | 17,290 | 14,088 |
Funding of Employee Stock Option Plan | 1,345 | 180 | 351 |
Treasury shares purchased | (78,718) | (112,634) | (125,422) |
Adjustments to initially apply changes in US GAAP | (4,282) | ||
RSU dividends | 0 | 0 | 0 |
Cash dividends | (29,619) | (27,518) | (24,995) |
Balance, Ending | 1,906,958 | 1,659,413 | 1,516,402 |
Common Stock | |||
Balance, Beginning | 1,628 | 1,628 | 1,628 |
Purchase of subsidiary shares from noncontrolling interest | 0 | ||
Comprehensive Income: | |||
Net income | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 0 | 0 | 0 |
Unrealized loss on available-for-sale securities | 0 | ||
Net loss on derivative financial instruments | 0 | 0 | 0 |
Pension liability adjustments | 0 | 0 | 0 |
Comprehensive Income | 0 | 0 | 0 |
Exercise of stock options | 0 | 0 | 0 |
Tax benefit from stock options exercised | 0 | 0 | 0 |
Share based compensation expense | 0 | 0 | 0 |
Funding of Employee Stock Option Plan | 0 | 0 | 0 |
Treasury shares purchased | 0 | 0 | 0 |
Adjustments to initially apply changes in US GAAP | 0 | ||
RSU dividends | 0 | 0 | 0 |
Cash dividends | 0 | 0 | 0 |
Balance, Ending | 1,628 | 1,628 | 1,628 |
Capital in Excess of Par Value | |||
Balance, Beginning | 187,154 | 173,084 | 168,135 |
Purchase of subsidiary shares from noncontrolling interest | 0 | ||
Comprehensive Income: | |||
Net income | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 0 | 0 | 0 |
Unrealized loss on available-for-sale securities | 0 | ||
Net loss on derivative financial instruments | 0 | 0 | 0 |
Pension liability adjustments | 0 | 0 | 0 |
Comprehensive Income | 0 | 0 | 0 |
Exercise of stock options | (11,515) | (7,268) | (20,592) |
Tax benefit from stock options exercised | 3,505 | 3,910 | 11,378 |
Share based compensation expense | 16,276 | 17,290 | 14,088 |
Funding of Employee Stock Option Plan | (63) | 62 | 39 |
Treasury shares purchased | 0 | 0 | 0 |
Adjustments to initially apply changes in US GAAP | 0 | ||
RSU dividends | 138 | 76 | 36 |
Cash dividends | 0 | 0 | 0 |
Balance, Ending | 195,495 | 187,154 | 173,084 |
Retained Earnings | |||
Balance, Beginning | 1,838,958 | 1,582,683 | 1,352,342 |
Purchase of subsidiary shares from noncontrolling interest | 0 | ||
Comprehensive Income: | |||
Net income | 274,258 | 283,869 | 259,654 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 0 | 0 | 0 |
Unrealized loss on available-for-sale securities | 0 | ||
Net loss on derivative financial instruments | 0 | 0 | 0 |
Pension liability adjustments | 0 | 0 | 0 |
Comprehensive Income | 0 | 0 | 0 |
Exercise of stock options | 0 | 0 | 0 |
Tax benefit from stock options exercised | 0 | 0 | 0 |
Share based compensation expense | 0 | 0 | 0 |
Funding of Employee Stock Option Plan | 0 | 0 | 0 |
Treasury shares purchased | 0 | 0 | 0 |
Adjustments to initially apply changes in US GAAP | (4,282) | ||
RSU dividends | (138) | (76) | (36) |
Cash dividends | (29,619) | (27,518) | (24,995) |
Balance, Ending | 2,083,459 | 1,838,958 | 1,582,683 |
Accumulated Other Comprehensive Income (Loss) | |||
Balance, Beginning | 39,612 | 145,819 | 79,914 |
Purchase of subsidiary shares from noncontrolling interest | 0 | ||
Comprehensive Income: | |||
Net income | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 50,566 | (71,521) | 106,231 |
Unrealized loss on available-for-sale securities | (333) | ||
Net loss on derivative financial instruments | (13,960) | (13,986) | (53,790) |
Pension liability adjustments | 7,324 | (20,700) | 13,797 |
Comprehensive Income | 0 | 0 | 0 |
Exercise of stock options | 0 | 0 | 0 |
Tax benefit from stock options exercised | 0 | 0 | 0 |
Share based compensation expense | 0 | 0 | 0 |
Funding of Employee Stock Option Plan | 0 | 0 | 0 |
Treasury shares purchased | 0 | 0 | 0 |
Adjustments to initially apply changes in US GAAP | 0 | ||
RSU dividends | 0 | 0 | 0 |
Cash dividends | 0 | 0 | 0 |
Balance, Ending | 83,542 | 39,612 | 145,819 |
Treasury Stock | |||
Balance, Beginning | (479,630) | (387,108) | (328,184) |
Purchase of subsidiary shares from noncontrolling interest | 0 | ||
Comprehensive Income: | |||
Net income | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 0 | 0 | 0 |
Unrealized loss on available-for-sale securities | 0 | ||
Net loss on derivative financial instruments | 0 | 0 | 0 |
Pension liability adjustments | 0 | 0 | 0 |
Comprehensive Income | 0 | 0 | 0 |
Exercise of stock options | 24,921 | 19,994 | 66,186 |
Tax benefit from stock options exercised | 0 | 0 | 0 |
Share based compensation expense | 0 | 0 | 0 |
Funding of Employee Stock Option Plan | 1,408 | 118 | 312 |
Treasury shares purchased | (78,718) | (112,634) | (125,422) |
Adjustments to initially apply changes in US GAAP | 0 | ||
RSU dividends | 0 | 0 | 0 |
Cash dividends | 0 | 0 | 0 |
Balance, Ending | (532,019) | (479,630) | (387,108) |
Total Dentsply International Stockholders Equity | |||
Balance, Beginning | 1,587,722 | 1,516,106 | 1,273,835 |
Purchase of subsidiary shares from noncontrolling interest | 0 | ||
Comprehensive Income: | |||
Net income | 274,258 | 283,869 | 259,654 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 50,566 | (71,521) | 106,231 |
Unrealized loss on available-for-sale securities | (333) | ||
Net loss on derivative financial instruments | (13,960) | (13,986) | (53,790) |
Pension liability adjustments | 7,324 | (20,700) | 13,797 |
Comprehensive Income | 318,188 | 177,662 | 325,559 |
Exercise of stock options | 13,406 | 12,726 | 45,594 |
Tax benefit from stock options exercised | 3,505 | 3,910 | 11,378 |
Share based compensation expense | 16,276 | 17,290 | 14,088 |
Funding of Employee Stock Option Plan | 1,345 | 180 | 351 |
Treasury shares purchased | (78,718) | (112,634) | (125,422) |
Adjustments to initially apply changes in US GAAP | (4,282) | ||
RSU dividends | 0 | 0 | 0 |
Cash dividends | (29,619) | (27,518) | (24,995) |
Balance, Ending | 1,832,105 | 1,587,722 | 1,516,106 |
Noncontrolling Interest | |||
Balance, Beginning | 71,691 | 296 | 239 |
Purchase of subsidiary shares from noncontrolling interest | 71,931 | ||
Comprehensive Income: | |||
Net income | 154 | (599) | 57 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 3,008 | 63 | 0 |
Unrealized loss on available-for-sale securities | 0 | ||
Net loss on derivative financial instruments | 0 | 0 | 0 |
Pension liability adjustments | 0 | 0 | 0 |
Comprehensive Income | 3,162 | (536) | 57 |
Exercise of stock options | 0 | 0 | 0 |
Tax benefit from stock options exercised | 0 | 0 | 0 |
Share based compensation expense | 0 | 0 | 0 |
Funding of Employee Stock Option Plan | 0 | 0 | 0 |
Treasury shares purchased | 0 | 0 | 0 |
Adjustments to initially apply changes in US GAAP | 0 | ||
RSU dividends | 0 | 0 | 0 |
Cash dividends | 0 | 0 | 0 |
Balance, Ending | $74,853 | $71,691 | $296 |
1_PARENTHETICAL DATA FOR CONSOL
PARENTHETICAL DATA FOR CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) | |||
Dec. 31, 2009
| Dec. 31, 2008
| Dec. 31, 2007
| |
Comprehensive Income: | |||
Cash Dividends, Value Per Share | 0.2 | 0.185 | 0.165 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Cash flows from operating activities: | |||
Net income | $274,412 | $283,270 | $259,711 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 54,087 | 47,887 | 42,628 |
Amortization | 11,088 | 9,042 | 7,661 |
Deferred income taxes | 195 | 13,371 | 25,568 |
Share based compensation expense | 16,276 | 17,290 | 14,088 |
Restructuring, impairments and other costs - noncash | 369 | 8,303 | 190 |
Stock option income tax benefit | (3,505) | (3,910) | (11,414) |
Other non-cash income | (8,650) | (19,654) | (10,676) |
(Gain) loss on disposal of property, plant and equipment | (1,997) | 1,373 | (1,904) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts and notes receivable-trade, net | (16,942) | (3,690) | 9,029 |
Inventories, net | 27,710 | (32,824) | (716) |
Prepaid expenses and other current assets | 6,996 | (1,220) | 644 |
Other non current assets | (192) | 390 | 1,253 |
Accounts payable | (4,947) | 5,430 | (7,395) |
Accrued liabilities | (1,708) | 5,748 | (396) |
Income taxes | 8,104 | 4,594 | 59,421 |
Other noncurrent liabilities | 1,193 | 581 | 5 |
Net cash provided by operating activities | 362,489 | 335,981 | 387,697 |
Cash flows from investing activities: | |||
Cash paid for acquisitions of businesses and equity investments | (2,986) | (117,300) | (101,492) |
Capital expenditures | (56,481) | (76,440) | (64,163) |
Expenditures for identifiable intangible assets | (14) | (2,477) | (1,665) |
Purchases of short-term investments | 0 | (166,208) | (138,471) |
Liquidations of short-term investments | 222 | 314,025 | 73 |
Proceeds from sale of property, plant and equipment | 5,860 | 596 | 6,327 |
Net cash used in investing activities | (53,399) | (47,804) | (299,391) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings, net of deferred financing costs | 86,091 | 117,900 | 149,500 |
Payments on long-term borrowings | (58,403) | (226,147) | (50,543) |
(Decrease) increase in short-term borrowings | (7,465) | 2,111 | (2,166) |
Proceeds from exercise of stock options | 13,406 | 12,726 | 45,594 |
Excess tax benefits from share based compensation | 3,505 | 3,910 | 11,378 |
Cash paid for treasury stock | (78,718) | (112,634) | (125,422) |
Cash dividends paid | (29,836) | (26,952) | (25,134) |
Net cash (used in) provided by financing activities | (71,420) | (229,086) | 3,207 |
Effect of exchange rate changes on cash and cash equivalents | 8,687 | (24,484) | 12,807 |
Net increase in cash and cash equivalents | 246,357 | 34,607 | 104,320 |
Cash and cash equivalents at beginning of period | 203,991 | 169,384 | 65,064 |
Cash and cash equivalents at end of period | 450,348 | 203,991 | 169,384 |
Supplemental disclosures of cash flow information: | |||
Interest paid, net of amounts capitalized | 23,231 | 34,222 | 21,926 |
Income taxes paid | $76,207 | $66,696 | $38,091 |
NOTE 1 - SIGNIFICANT ACCOUNTING
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Description of Business DENTSPLY International Inc (DENTSPLY or the Company), designs, develops, manufactures and markets a broad range of products for the dental market.The Company believes that it is the world's leading manufacturer and distributor of dental prosthetics, endodontic instruments and materials, and ultrasonic scalers; the leading United States manufacturer and distributor of denture teeth, dental handpieces, dental x-ray film holders, film mounts and prophylaxis paste; and a leading worldwide manufacturer or distributor of dental injectable anesthetics, impression materials, orthodontic appliances, dental cutting instruments, dental implants, restorative dental materials, dental sealants, and crown and bridge materials. The Company distributes its dental products in over 120 countries under some of the most well established brand names in the industry. DENTSPLY is committed to the development of innovative, high quality, cost effective products for the dental market. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (US GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the reporting period.Actual results could differ from those estimates, if different assumptions are made or if different conditions exist. Principles of Consolidation The consolidated financial statements include the accounts of the Company. The Company also consolidates all variable interest entities (VIE) where theCompany has determined that it has the power to direct the activities that most significantly impact the VIEs economic performance and shares in either the significant risks or rewards of the VIE. The Company continually reassess VIE to determine if consolidation is appropriate.All significant intercompany accounts and transactions are eliminated in consolidation. Cash and Cash Equivalents Cash and cash equivalents include deposits with banks as well as highly liquid time deposits with maturities at the date of purchase of ninety days or less. Short-term Investments Short-term investments are highly liquid time deposits with original maturities at the date of purchase greater than ninety days and with remaining maturities of approximately one year or less. Accounts and Notes Receivable-Trade The Company sells dental products through a worldwide network of distributors and directly to end users.For customers on credit terms, the Company performs ongoing credit evaluation of those customers' financial condition and generally does not require collateral from them.The Company establishes allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments.The Company records a provision for doubtful accounts, which is included in Selling, general and administrative expenses. Accounts receivable tra |
NOTE 2 - EARNINGS PER COMMON SH
NOTE 2 - EARNINGS PER COMMON SHARE | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
EARNINGS PER COMMON SHARE | NOTE 2 - EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share: Net income attributable to (in thousands, except for share amounts) DENTSPLY Earnings per International Shares common share Year Ended December 31, 2009 Basic $ 274,258 148,319 $ 1.85 Incremental shares from assumed exercise of dilutive options - 1,783 Diluted $ 274,258 150,102 $ 1.83 Year Ended December 31, 2008 Basic $ 283,869 149,069 $ 1.90 Incremental shares from assumed exercise of dilutive options - 2,610 Diluted $ 283,869 151,679 $ 1.87 Year Ended December 31, 2007 Basic $ 259,654 151,707 $ 1.71 Incremental shares from assumed exercise of dilutive options - 3,014 Diluted $ 259,654 154,721 $ 1.68 Options to purchase 2.9 million, 1.6 million and 0.2 million shares of common stock that were outstanding during the years ended 2009, 2008 and 2007, respectively, were not included in the computation of diluted earnings per common share since the options' exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. |
NOTE 3 - BUSINESS ACQUISITIONS
NOTE 3 - BUSINESS ACQUISITIONS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
BUSINESS ACQUISITIONS | NOTE 3 - BUSINESS ACQUISITIONS The Company accounts for all business combinations under the acquisition method of accounting; and accordingly, the results of the operations acquired are included in the accompanying financial statements for the periods subsequent to the respective dates of the acquisitions. During 2009, the acquisition related activity was $3.0 million, net of cash.This activity was related to an additional earn-out payment on a prior acquisition from 2007 and acquisition of a small sales and marketing organization of 3D digital implantology products. During 2008, the acquisition related activity was $117.3 million, net of cash and assumed debt.This activity was related to three business combinations, the acquisition and consolidation of two VIE, and three earn-out payments on acquisitions from prior years. Business Combinations The following list provides information about the companies acquired in 2008, excluding the VIE: In July 2008, the Company acquired Dental Depot Lomberg B.V. (Lomberg), which markets and sells various dental products, including but not limited to, orthodontic products and materials.Lomberg is included in the Canada/Latin America/ Endodontics/ Orthodontics segment and further strengthens the Companys dental specialty business. In July 2008, the Company acquired E.S. Holding N.V. (E.S. Holding), which manufactures, markets and sells dental products, particularly dental laboratory products, and non-dental products.E.S. Holding is included in the Dental Laboratory Business/Implants/Non-Dental segment and further strengthens the Companys dental specialty and laboratory businesses. In December 2008, the Company acquired the assets of Apollonia Fama Implant S.r.l. (AFI), which markets and sells dental implant products in Italy.AFI is included in the France, U.K., Italy and Certain Other European Countries, CIS, Middle East, Africa, Pacific Rim Businesses segment and further strengthens the Companys dental specialty business. Variable Interest Entities During 2006, the Company acquired a 40% interest in Materialise Dental N.V. (Materialise), a simulation software company and a leading manufacturer of a variety of surgical guides to assist in the placement of dental implants.The transaction provides the opportunity for the Company to acquire the remaining interest over time.The Company accounted for the initial purchase of 40% interest under the equity method. In 2007, Materialise received a $2.7 million uncollateralized loan of which the Company funded $1.1 million, which was equivalent to its ownership interest.The loan has a five year term and was issued to support Materialises working capital.If the Company purchases additional shares subsequent to December 31, 2009 under the provisions of the Sale and Purchase Agreement (SPA), the loan is repayable immediately. In the fourth quarter of 2008, the Company purchased an additional 6% interest in Materialise. The purchase of additional interest increased the Companys total ownership to 46%, and created a reconsideration event in determining if the Company is the primary beneficiary of Materialise. The Company |
NOTE 4 - SEGMENT AND GEOGRAPHIC
NOTE 4 - SEGMENT AND GEOGRAPHIC INFORMATION | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | NOTE 4 SEGMENT AND GEOGRAPHIC INFORMATION The operating businesses are combined into operating groups, which have overlapping product offerings, geographical presence, customer bases, distribution channels and regulatory oversight. These operating groups are considered the Companys reportable segments as the Companys chief operating decision-maker regularly reviews financial results at the operating group level and uses this information to manage the Companys operations. The accounting policies of the segments are consistent with those described for the consolidated financial statements in the summary of significant accounting policies (see Note 1, Significant Accounting Policies).The Company measures segment income for reporting purposes as net operating income before restructuring, impairments, and other costs, interest and taxes. Additionally, net operating income is derived from net third party sales, excluding precious metal content.A description of the services provided within each of the Companys four reportable segments is provided below.The disclosure below reflects the Companys segment reporting structure. In January 2009, the Company moved the reporting responsibility for several locations between segments as a result of a change to the management structure.This change also helped the Company gain operating efficiencies and effectiveness.The segment information below reflects this revised structure for all periods shown. United States, Germany, and Certain Other European Regions Consumable Businesses This business group includes responsibility for the design, manufacture, sales and distribution for certain small equipment and chairside consumable products in the United States, Germany, and certain other European regions.It also has responsibility for the sales and distribution of certain Endodontic products in Germany. France, United Kingdom, Italy and Certain Other European Countries, CIS, Middle East, Africa, Pacific Rim Businesses This business group includes responsibility for the sales and distribution for certain small equipment, chairside consumable products, certain laboratory products and certain Endodontic products in France, United Kingdom, Italy, the Commonwealth of Independent States (CIS), Middle East, Africa, Asia (excluding Japan), Japan and Australia, as well as the sale and distribution of implant products and bone substitute/grafting materials in Italy, Asia and Australia. This business group also includes the responsibility for sales and distribution for certain laboratory products, implants products and bone substitution/grafting materials for Austria.It also is responsible for sales and distribution for certain small equipment and chairside consumable products, certain laboratory products, implant products and bone substation/grafting materials in certain other European countries.In addition this business group also includes the manufacture and sale of Orthodontic products and certain laboratory products in Japan, and the manufacture of certain laboratory and certain Endodontic products in Asia. Canada/Latin America/Endodontics/Orthodontics This business group includes responsibility |
NOTE 5 - OTHER EXPENSE
NOTE 5 - OTHER EXPENSE (INCOME) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
OTHER EXPENSE (INCOME) | NOTE 5 OTHER EXPENSE (INCOME) Other expense (income), net, consists of the following: December 31, (in thousands) 2009 2008 2007 Foreign exchange transaction losses (gains) $ 336 $ 8,881 $ (452 ) Other expense (income) 631 1,229 (204 ) $ 967 $ 10,110 $ (656 ) |
NOTE 6 - INVENTORIES, NET
NOTE 6 - INVENTORIES, NET | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
INVENTORIES | NOTE 6 INVENTORIES, NET Inventories, net, consist of the following: December 31, (in thousands) 2009 2008 Finished goods $ 178,721 $ 184,226 Work-in-process 53,056 58,123 Raw materials and supplies 59,863 63,776 $ 291,640 $ 306,125 The Companys inventory valuation reserve was $31.9 million for 2009 and $28.4 million for 2008. |
NOTE 7 - PROPERTY, PLANT AND EQ
NOTE 7 - PROPERTY, PLANT AND EQUIPMENT, NET | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 7- PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consist of the following: December 31, (in thousands) 2009 2008 Assets, at cost: Land $ 43,207 $ 40,702 Buildings and improvements 295,297 256,172 Machinery and equipment 546,806 511,618 Construction in progress 18,610 31,659 903,920 840,151 Less:Accumulated depreciation 464,301 407,875 Property, plant and equipment, net $ 439,619 $ 432,276 |
NOTE 8 - GOODWILL AND INTANGIBL
NOTE 8 - GOODWILL AND INTANGIBLE ASSETS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 8 GOODWILL AND INTANGIBLE ASSETS The Company requires that impairment tests on goodwill or other indefinite-lived intangible assets be performed annually and are based upon a fair value approach rather than an evaluation of undiscounted cash flows. If goodwill impairment is identified, the resulting charge is determined by recalculating goodwill through a hypothetical purchase price allocation of the fair value and reducing the current carrying value to the extent it exceeds the recalculated goodwill. If impairment is identified on indefinite-lived intangibles, the resulting charge reflects the excess of the assets carrying cost over its fair value. Other intangible assets with finite lives are amortized over their useful lives and tested for impairment when events or changes in circumstances indicate that the finite-lived intangible assets may be impaired In addition to minimum annual impairment tests, the Company also requires that impairment assessments be made more frequently if events or changes in circumstances indicate that the goodwill or indefinite-lived intangible assets might be impaired.As the Company learns of such changes in circumstances through periodic analysis of actual results or through the annual development of operating unit business plans in the fourth quarter of each year, for example, impairment assessments will be performed as necessary. The Company performs its annual goodwill impairment test in the second quarter of each year.This impairment assessment includes an evaluation of various reporting units, which are generally an operating segment or one reporting level below the operating segment. The Company compares the fair value of each reporting unit to its carrying amount to determine if there is potential goodwill impairment. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill of the reporting unit is less than the carrying value of its goodwill. The Company performed the required annual impairment tests of goodwill as of April 30, 2009 on seven reporting units.To determine the fair value of our reporting units, the Company uses a discounted cash flow model with market-based support as its valuation technique to measure the fair value for its reporting units.The discounted cash flow model uses five year forecasted cash flows plus a terminal value based on a multiple of earnings.In addition, the Company applied gross margin and operating expense assumptions consistent with historical trends.The total cash flows were discounted based on a range between 8% to 11%, which included assumptions regarding the Companys weighted-average cost of capital.The Company considered the current market conditions when determining its assumptions as the U.S. economy, and to a certain extent, the global economy, were in a recession during 2009.Lastly, the Company reconciled the aggregated fair values of its reporting units to its market capitalization, which included a reasonable control premium based on market conditions.As a result of the annual impairment tests of goodwill, no impairment was identified. As o |
NOTE 9 - ACCRUED LIABILITIES
NOTE 9 - ACCRUED LIABILITIES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
ACCRUED LIABILITIES | NOTE 9 - ACCRUED LIABILITIES Accrued liabilities consist of the following: December 31, (in thousands) 2009 2008 Payroll, commissions, bonuses, other cash compensation and employee benefits $ 60,083 $ 68,602 General insurance 13,222 14,130 Sales and marketing programs 28,468 27,441 Professional and legal costs 10,248 10,075 Restructuring costs 9,358 4,905 Warranty liabilities 4,141 4,260 Deferred income 3,385 2,613 Accrued vacation and holidays 13,425 12,391 Third party royalties 9,806 9,053 Current portion of derivatives 59,250 8,520 Other 37,783 31,670 $ 249,169 $ 193,660 A reconciliation of changes in the Company's warranty liability for 2009 and 2008 is as follows: December 31, (in thousands) 2009 2008 Balance, beginning of the year $ 4,260 $ 4,431 Accruals for warranties issued during the year 1,129 859 Accruals related to pre-existing warranties - (48 ) Warranty settlements made during the year (1,295 ) (875 ) Effects of exchange rate changes 47 (107 ) Balance, end of the year $ 4,141 $ 4,260 |
NOTE 10 - FINANCING ARRANGEMENT
NOTE 10 - FINANCING ARRANGEMENTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
FINANCING ARRANGEMENTS | NOTE 10 - FINANCING ARRANGEMENTS Recent Financing Activities On October 16, 2009, the Company and a group of investors agreed to a new $250.0 million Private Placement Note (PPN) to be funded not later than February 19, 2010 with an average maturity of five years and a final maturity of six years at a fixed rate of 4.11%.The PPN is unsecured and contains certain affirmative and negative covenants relating to operations and financial condition of the Company similar in substance to the existing $150.0 million U.S. Private Placement Note maturing March 15, 2010. In accordance with the terms of PPN Purchase Agreement (the Agreement), the Company received net proceeds of $250.0 million on February 19, 2010.The proceeds will be used to refinance the $150.0 million U.S. Private Placement Note due on March 15, 2010 with the remaining proceeds used to repay the commercial paper borrowing of $85.2 million and fund book overdrafts of $4.0 million.As of December 31, 2009, the Company has classified $239.2 million as long-term debt.The long-term debt classification is supported by the fact that the Company has demonstrated its intent and ability to fund existing short-term debt with the proceeds from the PPN.Additionally, the Agreement has an average maturity of five years, and the lenders are not permitted to cancel the Agreement or accelerate repayments.The Agreement does not contain a material adverse change clause subsequent to funding. Short-Term Borrowings Short-term bank borrowings amounted to $15.6 million and $21.8 million at December 31, 2009 and 2008, respectively. The weighted average interest rates of these borrowings were 3.0% and 5.3% at December 31, 2009 and 2008, respectively. Unused lines of credit for short-term financing at December 31, 2009 and 2008 were $56.9 million and $43.4 million, respectively. Substantially all other short-term borrowings were classified as long-term as of December 31, 2009 and 2008, reflecting the Company's intent and ability to refinance these obligations beyond one year and are included in the following table. The unused lines of credit have no major restrictions and are provided under demand notes between the Company and the lending institution. Interest is charged on borrowings under these lines of credit at various rates, generally below prime or equivalent money rates. Long-Term Borrowings December 31, (in thousands) 2009 2008 Multi-currency revolving credit agreement expiring May 2010: Swiss francs 65 million at 0.60% $ 62,844 $ 60,809 Swiss francs 57 million - 53,507 Private placement notes: U.S. dollar denominated expiring March 2010 at 0.55% 150,000 150,000 Term Loan Agreement: Japanese yen denominated expiring March 2012 at 1.00% 134,776 138,247 U.S. dollar commercial paper: Facility rated A/2-P/2 U.S. dollar borrowings at 0.30% 85,200 - Other borrowings, various currencies and rates 20,911 25,096 $ 453,731 $ 427,659 Less: Current portion (included in notes payable and cur |
NOTE 11 - EQUITY
NOTE 11 - EQUITY | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
EQUITY | NOTE 11 - EQUITY At December 31, 2009, the Company had authorization to repurchase shares under its stock repurchase program in an amount up to 17,000,000 shares of treasury stock. Under its stock repurchase program, the Company purchased 2,452,903 shares and 2,971,155 shares during 2009 and 2008 at an average price of $32.09 and $37.91, respectively. As of December 31, 2009 and 2008, the Company held 15.8 million and 14.2 million shares of treasury stock, respectively. During 2009, the Company repurchased $78.7 million in treasury stock. The Company also received proceeds of $13.4 million primarily as a result of the exercise of 0.9 million stock options during the year ended December 31, 2009. It is the Companys practice to issue shares from treasury stock when options are exercised. The tax benefit realized for the options exercised during the year ended December 31, 2009 is $3.9 million. The following table represents total outstanding shares for the years ended December 31: Common Treasury Outstanding (in thousands) Shares Shares Shares Balance at December 31, 2006 162,776 (10,985 ) 151,791 Shares Issued - 2,421 2,421 Repurchase of common stock at cost - (3,390 ) (3,390 ) Balance at December 31, 2007 162,776 (11,954 ) 150,822 Shares Issued - 677 677 Repurchase of common stock at cost - (2,971 ) (2,971 ) Balance at December 31, 2008 162,776 (14,248 ) 148,528 Shares Issued - 886 886 Repurchase of common stock at cost - (2,453 ) (2,453 ) Balance at December 31, 2009 162,776 (15,815 ) 146,961 The Company maintains the 2002 Equity Incentive Plan (the Plan) under which it may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units (RSU) and stock appreciation rights, collectively referred to as Awards.Awards are granted at exercise prices that approximate the fair market value of the common stock on the grant date.The Plan authorizes grants of 14,000,000 shares of common stock, plus any unexercised portion of canceled or terminated stock options granted under the DENTSPLY International Inc 1993 and 1998 Plans, subject to adjustment as follows:each January, if 7% of the total outstanding common shares of the Company exceed 14,000,000, the excess becomes available for grant under the Plan.No more than 2,000,000 shares may be awarded as restricted stock and restricted stock units, and no key employee may be granted restricted stock units in excess of 150,000 shares of common stock in any calendar year.The number of shares available for grant under the 2002 Plan as of December 31, 2009 is 1.0 million. Stock options generally expire ten years after the date of grant under these plans and grants become exercisable over a period of three years after the date of grant at the rate of one-third per year, except when they become immediately exercisable upon death, disability or qualifie |
NOTE 12 - INCOME TAXES
NOTE 12 - INCOME TAXES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
INCOME TAXES | NOTE 12 - INCOME TAXES The components of income before income taxes from operations are as follows: December31, (inthousands) 2009 2008 2007 United States $ 99,009 $ 45,171 $ 100,740 Foreign 264,347 309,702 257,452 $ 363,356 $ 354,873 $ 358,192 The components of the provision for income taxes from operations are as follows: December31, (inthousands) 2009 2008 2007 Current: U.S. federal $ 30,851 $ (9,913 ) $ 14,395 U.S. state 5,886 2,291 4,122 Foreign 52,012 65,854 54,396 Total $ 88,749 $ 58,232 $ 72,913 Deferred: U.S. federal $ (8,046 ) $ 23,496 $ 28,131 U.S. state (476 ) 3,283 1,627 Foreign 8,717 (13,408 ) (4,190 ) Total $ 195 $ 13,371 $ 25,568 $ 88,944 $ 71,603 $ 98,481 The reconciliation of the U.S. federal statutory tax rate to the effective rate for the years ended is as follows: December 31, 2009 2008 2007 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % Effect of: State income taxes, net of federal benefit 1.0 1.0 1.0 Federal benefit of RD and foreign tax credits (11.3 ) (15.8 ) (3.2 ) Tax effect of international operations 0.7 5.3 (2.4 ) Net effect of tax audit activity (1.3 ) (4.4 ) 1.0 Tax effect of enacted statutory rate changes - 0.1 (3.1 ) Federal tax on unremitted earnings of certain foreign subsidiaries 0.1 (0.3 ) 0.1 Valuation allowance adjustments - (0.4 ) - Other 0.3 (0.3 ) (0.9 ) Effective income tax rate on operations 24.5 % 20.2 % 27.5 % The tax effect of temporary differences giving rise to deferred tax assets and liabilities are as follows: December31,2009 December31,2008 Current Noncurrent Current Noncurrent Asset Asset Asset Asset (inthousands) (Liability) (Liability) (Liability) (Liability) Employee benefit accruals $ 2,791 $ 25,085 $ 4,159 $ 20,832 Product warranty accruals 980 - 1,065 - Insurance premium accruals 5,068 - 5,401 - Commission and bonus accrual 1,764 - 1,904 - Sales and marketing accrual 4,553 - 3,799 - Restructuring and other cost accruals 777 - 800 2,178 Differences in financial reporting and tax basis for: Inventory 15,554 - 14,196 - Property, plant and equipment - (38,663 ) - (40,493 ) Identifiable intangible assets - ( |
NOTE 13 - BENEFIT PLANS
NOTE 13 - BENEFIT PLANS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
BENEFIT PLANS | NOTE 13 - BENEFIT PLANS Substantially all of the employees of the Company and its subsidiaries are covered by government or Company-sponsored benefit plans. Total costs for Company-sponsored defined benefit, defined contribution and employee stock ownership plans amounted to $24.6 million, $21.2 million and $20.9 million in 2009, 2008 and 2007, respectively. Defined Contribution Plans In December 2006, the Board of Directors amended the DENTSPLY Employee Stock Ownership Plan (ESOP) and 401(k) plans to redesign the future distribution of allocations of Covered Compensation, with a targeted 3% going into the ESOP in Company stock and a targeted 3% going into the 401(k) as a Non-Elective Contribution (NEC) in cash. The principal driver of this redesign is to provide quicker diversification opportunity to the participants as the investment of the NEC is participant directed. The Company sponsors an employee 401(k) savings plan for its U.S. workforce to which enrolled participants may contribute up to Internal Revenue Service (IRS) defined limits. The annual expense and cash contribution to the 401(k) is expected to be $5.3 million for 2009 (to be contributed in the first quarter of 2010), and was $5.0 million and $4.6 million in 2008 and 2007, respectively. The ESOP is a non-contributory defined contribution plan that covers substantially all of the U.S. based non-union employees of the Company. Contributions to the ESOP, net of forfeitures, are expected to be $1.4 million for 2009 (to be contributed in the first quarter of 2010), and were $1.3 million for 2008 (contributed in the first quarter of 2009), and were $0.2 million for 2007 (contributed in the first quarter of 2008). All future ESOP allocations will come from a combination of forfeited shares and shares acquired in the open market. The Company has targeted future ESOP allocations at 3% of Covered Compensation. The share allocation will be accounted at fair value at the point of allocation, which is normally year-end. Defined Benefit Plans The Company maintains a number of separate contributory and non-contributory qualified defined benefit pension plans and other postretirement medical plans for certain union and salaried employee groups in the U.S. Pension benefits for salaried plans are based on salary and years of service; hourly plans are based on negotiated benefits and years of service. Annual contributions to the pension plans are sufficient to satisfy minimum funding requirements. Pension plan assets are held in trust and consist mainly of common stock and fixed income investments. The U.S. plans are funded in excess of the funding required by the U.S. Department of Labor. The Company maintains defined benefit pension plans for its employees in Germany, Japan, the Netherlands, Switzerland and Taiwan. These plans provide benefits based upon age, years of service and remuneration. Substantially all of the German plans are unfunded book reserve plans. Other foreign plans are not significant individually or in the aggregate. Most employees and retirees outside the U.S. are covered by government health plans. Defined Benefit Pension Plan Assets The C |
NOTE 14 - RESTRUCTURING, IMPAIR
NOTE 14 - RESTRUCTURING, IMPAIRMENTS AND OTHER COSTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
RESTRUCTURING, IMPAIRMENT AND OTHER COSTS | NOTE 14 RESTRUCTURING, IMPAIRMENTS AND OTHER COSTS Restructuring Costs Restructuring costs of $5.9 million for 2009 are reflected in Restructuring, impairments and other costs in the statement of operations and the associated liabilities are recorded in accrued liabilities and other non-current liabilities in the consolidated balance sheet.These costs consist of employee severance benefits, payments due under operating contracts, and other restructuring costs. During 2009, the Company initiated several restructuring plans primarily related to the closure and/or consolidation of certain production and selling facilities in the United States, Europe and South America to better leverage the Companys resources by reducing costs and obtaining operational efficiencies.Additionally, the Company executed targeted reductions in workforce both in the manufacturing and non-manufacturing business functions in certain locations. During 2008, the Company initiated several restructuring plans primarily related to the integration, reorganization, and closure or consolidation of certain production and selling facilities in order to better leverage the Companys resources by minimizing costs and obtaining operational efficiencies. As of December 31, 2009, the Companys restructuring accruals were as follows: Severances 2007and (inthousands) PriorPlans 2008Plans 2009Plans Total Balance, December 31, 2008 $ 664 $ 2,806 $ - $ 3,470 Provisions and adjustments (185 ) 3,165 4,389 7,369 Amounts applied (46 ) (1,102 ) (1,133 ) (2,281 ) Balance, December 31, 2009 $ 433 $ 4,869 $ 3,256 $ 8,558 Lease/contractterminations 2007and (inthousands) PriorPlans Total Balance, December 31, 2008 $ 1,271 $ 1,271 Provisions and adjustments 50 50 Amounts applied (196 ) (196 ) Balance, December 31, 2009 $ 1,125 $ 1,125 Otherrestructuringcosts 2007and (inthousands) PriorPlans 2008Plans 2009Plans Total Balance, December 31, 2008 $ 108 $ 56 $ - $ 164 Provisions and adjustments 137 568 (2,190 ) (1,485 ) Amounts applied (133 ) (624 ) 2,190 1,433 Balance, December 31, 2009 $ 112 $ - $ - $ 112 The following table provides the cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment: December31, Provisions Amounts December31, (inthousands) 2008 andadjustments applied 2009 U.S., Germany and Certain Other European Regions Consumable Businesses $ 1,286 $ 338 $ (346 ) $ 1,278 France, U.K., Italy and Certain Other European Countries, CIS, Middle East, Africa, Pacific Rim Busine |
NOTE 15 - FINANCIAL INSTRUMENTS
NOTE 15 - FINANCIAL INSTRUMENTS AND DERIVATIVES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
FINANCIAL INSTRUMENTS AND DERIVATIVES | NOTE 15 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, interest rates and commodity prices.These financial exposures are monitored and managed by the Company as part of its overall risk management program. The objective of this risk management program is to reduce the volatility that these market risks may have on the Company's operating results and equity. Certain of the Company's inventory purchases are denominated in foreign currencies, which expose the Company to market risk associated with exchange rate movements.The Company's policy generally is to hedge major foreign currency transaction exposures through foreign exchange forward contracts.These contracts are entered into with major financial institutions thereby minimizing the risk of credit loss.In addition, the Company's investments in foreign subsidiaries are denominated in foreign currencies, which create exposures to changes in exchange rates.The Company uses debt and derivatives denominated in the applicable foreign currency as a means of hedging a portion of this risk. With the Companys significant level of variable interest rate long-term debt and net investment hedges, changes in the interest rate environment can have a major impact on the Companys earnings, depending upon its interest rate exposure.As a result, the Company manages its interest rate exposure with the use of interest rate swaps, when appropriate, based upon market conditions. The manufacturing of some of the Companys products requires the use of commodities, which are subject to market fluctuations.In order to limit the unanticipated impact on earnings from such market fluctuations, the Company selectively enters into commodity swaps for certain materials used in the production of its products.Additionally, the Company uses non-derivative methods, such as the precious metal consignment agreements to effectively hedge commodity risks. Cash Flow Hedges The Company uses interest rate swaps to convert a portion of its variable interest rate debt to fixed interest rate debt.As of December 31, 2009, the Company has three groups of significant variable interest rate to fixed rate interest rate swaps.One of the groups of swaps has notional amounts totaling 12.6 billion Japanese yen, and effectively converts the underlying variable interest rates to an average fixed interest rate of 1.6% for a term of ten years, ending in September 2012.Another swap has a notional amount of 65.0 million Swiss francs, and effectively converts the underlying variable interest rates to a fixed interest rate of 4.2% for a term of seven years, ending in September 2012.A third group of swaps has a notional amount of $150.0 million, and effectively converts the underlying variable interest rates to a fixed interest rate of 3.9% for a term of two years, ending March 2010.The Company enters into interest rate swap contracts infrequently as they are only used to manage interest rate risk on long-term debt instruments a |
NOTE 16 - FAIR VALUE MEASUREMEN
NOTE 16 - FAIR VALUE MEASUREMENT | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 16 FAIR VALUE MEASUREMENT The Company records financial instruments at fair value with unrealized gains and losses related to certain financial instruments reflected in AOCI on the Consolidated Balance Sheets.In addition, the Company recognizes certain liabilities at fair value. The fair value of financial instruments is determined by reference to various market data and other valuation techniques as appropriate. The Company believes the carrying amounts of accounts receivable (net of allowance for doubtful accounts), prepaid expenses and other current assets, accounts payable, accrued liabilities, income taxes payable and notes payable approximate fair value due to the short-term nature of these instruments. The Company estimates the fair value and carrying value of its total long term debt, including current portion of long-term debt, was $453.7 million and $427.7 million as of December 31, 2009 and 2008, respectively.The fair value of the Companys long-term debt equaled its carrying value as the Companys debt is variable rate and reflects current market rates. The interest rates on private placement notes, revolving debt and commercial paper are variable and therefore the fair value of these instruments approximates their carrying values. The following tables set forth by level within the fair value hierarchy the Companys financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2009 and December 31, 2008, which are classified as Cash and cash equivalents, Prepaid expenses and other current assets, Other noncurrent assets, net, Accrued liabilities, and Other noncurrent liabilities.Financial assets and liabilities that are recorded at fair value as of the balance sheet date are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. December 31, 2009 (in thousands) Total Level 1 Level 2 Level 3 Assets Money market funds $ 450,348 $ 450,348 $ - $ - Commodity forward purchase contracts 293 - 293 - Foreign exchange forward contracts 1,159 - 1,159 - Total assets $ 451,800 $ 450,348 $ 1,452 $ - Liabilities Interest rate swaps $ 9,787 $ - $ 9,787 $ - Cross currency interest rate swaps 176,621 - 176,621 - Foreign exchange forward contracts 1,435 - 1,435 - Total liabilities $ 187,843 $ - $ 187,843 $ - December 31, 2008 (in thousands) Total Level 1 Level 2 Level 3 Assets Money market funds $ 203,991 $ 203,991 $ - $ - Interest rate swaps 2 - 2 - Foreign exchange forward contracts 2,053 - 2,053 - Total assets $ 206,046 $ 203,991 $ 2,055 $ - Liabilities |
NOTE 17 - COMMITMENTS AND CONTI
NOTE 17 - COMMITMENTS AND CONTINGENCIES | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 17 - COMMITMENTS AND CONTINGENCIES Leases The Company leases automobiles and machinery and equipment and certain office, warehouse and manufacturing facilities under non-cancellable operating leases. These leases generally require the Company to pay insurance, taxes and other expenses related to the leased property. Total rental expense for all operating leases was $32.2 million for 2009, $29.5 million for 2008 and $27.4 million for 2007. Rental commitments, principally for real estate (exclusive of taxes, insurance and maintenance), automobiles and office equipment are as follows: (in thousands) 2010 $ 26,688 2011 18,207 2012 12,814 2013 7,289 2014 4,799 2015 and thereafter 12,423 $ 82,220 Litigation On January 5, 1999, the Department of Justice filed a Complaint against the Company in the U.S. District Court in Wilmington, Delaware alleging that the Companys tooth distribution practices violated the antitrust laws and seeking an order for the Company to discontinue its practices.This case has been concluded and the District Court, upon the direction of the Court of Appeals, issued an injunction in May 2006, preventing DENTSPLY from taking action to restrict its tooth dealers in the U.S. from adding new competitive teeth lines. Subsequent to the filing of the Department of Justice Complaint in 1999, a private party putative class action was filed based on allegations similar to those in the Department of Justice case, on behalf of dental laboratories who purchased Trubyte teeth or products containing Trubyte teeth.The District Court granted the Companys Motion on the lack of standing of the laboratory class action to pursue damage claims.The Plaintiffs appealed this decision to the Third Circuit and the Court largely upheld the decision of the District Court in dismissing the Plaintiffs damages claims against DENTSPLY, with the exception of allowing the Plaintiffs to pursue a damage claim based on a theory of resale price maintenance between the Company and its tooth dealers.The Plaintiffs then filed an amended complaint in the District Court asserting that DENTSPLY and its tooth dealers, and the dealers among themselves, engaged in a conspiracy to violate the antitrust laws.The District Court has granted the Motions filed by DENTSPLY and the dealers, to dismiss Plaintiffs claims, except for the resale price maintenance claims.The Plaintiffs have appealed the dismissal of these claims to the Third Circuit.The Third Circuit held oral arguments in January 2010 and we are awaiting a decision.Also pending is a case filed by a manufacturer of a competitive tooth line seeking damages alleged to have been incurred as a result of the Companys tooth distribution practices, including the practice found to be a violation of the antitrust law.This case is currently scheduled for trial in May 2010 and the Plaintiffs have submitted their experts report, which claims single damages in the range of $1.6 million to $4.2 million. On June 18, 2004, Marvin Weinstat, DDS and Richard Nathan, DDS filed a class action suit in San Francisco County, California alleg |
NOTE 18 - SUBSEQUENT EVENT
NOTE 18 - SUBSEQUENT EVENT | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
SUBSEQUENT EVENT | NOTE 18 SUBSEQUENT EVENT According to the terms of the Private Placement Note Purchase Agreement entered into on October 16, 2009 and further discussed in Note 10, Financing Arrangements, the Company received $250.0 million aggregate principal on February 19, 2010.The net proceeds after deducting fees and expenses of the loan are $250.0 million.The proceeds will be used to refinance the $150.0 million U.S. Private Placement Note and other short term obligations. |
NOTE 19 - QUARTERLY FINANCIAL I
NOTE 19 - QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | NOTE 19 - QUARTERLY FINANCIAL INFORMATION (UNAUDITED) DENTSPLY INTERNATIONAL INC Quarterly Financial Information (Unaudited) (in thousands, except per share amounts) First Second Third Fourth Total Quarter Quarter Quarter Quarter Rounding Year 2009 Net sales $ 506,949 $ 553,216 $ 531,032 $ 568,719 $ - $ 2,159,916 Gross profit 266,969 286,971 272,981 284,383 - 1,111,304 Operating income 86,171 98,708 92,930 103,378 - 381,187 Net income attributable to DENTSPLY International 61,743 70,199 67,483 74,834 (1 ) 274,258 Earnings per common share - basic $ 0.42 $ 0.47 $ 0.45 $ 0.51 $ - $ 1.85 Earnings per common share - diluted $ 0.41 $ 0.47 $ 0.45 $ 0.50 $ - $ 1.83 Cash dividends declared per common share $ 0.050 $ 0.050 $ 0.050 $ 0.050 $ - $ 0.200 2008 Net sales $ 560,782 $ 594,847 $ 529,953 $ 508,141 $ - $ 2,193,723 Gross profit 285,243 315,486 280,183 271,032 - 1,151,944 Operating income 101,037 113,161 80,915 85,310 (2 ) 380,421 Net income attributable to DENTSPLY International 68,180 78,648 66,047 70,995 (1 ) 283,869 Earnings per common share - basic $ 0.45 $ 0.53 $ 0.44 $ 0.48 $ - $ 1.90 Earnings per common share - diluted $ 0.45 $ 0.52 $ 0.44 $ 0.47 $ (0.01 ) $ 1.87 Cash dividends declared per common share $ 0.045 $ 0.045 $ 0.045 $ 0.050 $ - $ 0.185 Net sales, excluding precious metal content, were $465.6 million, $511.9 million, $493.6 million and $520.1 million, respectively, for the first, second, third and fourth quarters of 2009.Net sales, excluding precious metal content, were $496.2 million, $542.3million, $488.1 million and $467.2 million, respectively, for the first, second, third and fourth quarters of 2008. This measurement should be considered a non-US GAAP measure as discussed further in Management's Discussion and Analysis of Financial Condition and Results of Operations. Supplemental Stock Information The common stock of the Company is traded on the NASDAQ National Market under the symbol XRAY. The following table sets forth high, low and closing sale prices of the Company's common stock for the periods indicated as reported on the NASDAQ National Market: Market Range of Common Stock Period-end Cash Closing Divid |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Schedule to Financial Statements [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2009, 2008 and 2007 Additions (in thousands) Charged Balanceat (Credited) Chargedto Write-offs Balance Beginning ToCosts Other Netof Translation atEnd Description ofPeriod AndExpenses Accounts Recoveries Adjustment ofPeriod Allowance for doubtful accounts: For Year Ended December 31, 2007 $ 16,183 $ 2,854 $ (182 ) $ (1,927 ) $ 1,650 $ 18,578 2008 18,578 3,674 (348 ) (1,705 ) (1,350 ) 18,849 2009 18,849 (3,124 ) (a) 17 (4,253 ) 746 12,235 Allowance for trade discounts: For Year Ended December 31, 2007 $ 457 $ (155 ) $ - $ - $ 5 $ 307 2008 307 267 4 - (59 ) 519 2009 519 505 - - 79 1,103 Inventory valuation reserves: For Year Ended December 31, 2007 $ 26,305 $ 3,134 $ (449 ) $ (4,525 ) $ 1,725 $ 26,190 2008 26,190 3,261 1,938 (1,981 ) (1,019 ) 28,389 2009 28,389 5,883 80 (3,610 ) 1,190 31,932 Deferred tax asset valuation allowance: For Year Ended December 31, 2007 $ 49,379 $ 7,076 $ - $ (11,124 ) (b) $ 4,919 $ 50,250 2008 50,250 603 - (13,203 ) (c) (909 ) 36,741 2009 36,741 13,419 - - 1,649 51,809 (a) See Note 1, Significant Accounting Policies, to the consolidated financial statements, for further discussion. (b) The significant increase for write-offs during 2007 isthe result of a global tax restructuring project, where-in net operating losses subject to a full valuation allowance are not available for future use. (c) The write-offs during 2008 are the result of a global tax restructuring project, tax audit closures, and expired tax losses. |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-K |
Document Period End Date | 2010-02-19 |
Amendment Flag | false |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 16, 2010
| Jun. 30, 2009
| |
Entity [Text Block] | |||
Entity Registrant Name | DENTSPLY INTERNATIONAL INC /DE/ | ||
Entity Central Index Key | 0000818479 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $4,762,176,900 | ||
Entity Common Stock, Shares Outstanding | 147,173,059 |