QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered |
Large Accelerated Filer | ☐ | Accelerated Filer | ☐ | ||
☒ | Smaller Reporting company | ||||
Emerging Growth Company |
PART I. FINANCIAL INFORMATION | ||
PAGE | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. |
As of | |||||||
July 3, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | $ | |||||
Trade accounts receivable, less allowance for credit losses of $30.6 and $22.8, respectively | |||||||
Inventories, net | |||||||
Prepaid expenses and other current assets | |||||||
Total current assets | |||||||
Property, plant and equipment, net | |||||||
Operating lease right-of-use assets | |||||||
Other long-term assets | |||||||
Goodwill | |||||||
Other intangible assets, net | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | $ | |||||
Trade accounts payable | |||||||
Accrued expenses and other liabilities | |||||||
Operating lease liabilities | |||||||
Total current liabilities | |||||||
Operating lease liabilities | |||||||
Other long-term liabilities | |||||||
Long-term debt | |||||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, no par value, 15.0 million shares authorized; no shares issued or outstanding at July 3, 2020 and December 31, 2019 | |||||||
Common stock - $0.01 par value, 500.0 million shares authorized; 159.4 million shares issued and 159.3 million outstanding at July 3, 2020; 158.7 million shares issued and outstanding at December 31, 2019 | |||||||
Additional paid-in capital | |||||||
(Accumulated deficit) retained earnings | ( | ) | |||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Total Envista stockholders’ equity | |||||||
Noncontrolling interests | |||||||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||
July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | ||||||||||||
Sales | $ | $ | $ | $ | |||||||||||
Cost of sales | |||||||||||||||
Gross profit | |||||||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | |||||||||||||||
Research and development | |||||||||||||||
Operating (loss) profit | ( | ) | ( | ) | |||||||||||
Nonoperating income (expense): | |||||||||||||||
Other income | |||||||||||||||
Interest expense, net | ( | ) | ( | ) | |||||||||||
(Loss) income before income taxes | ( | ) | ( | ) | |||||||||||
Income tax (benefit) expense | ( | ) | ( | ) | |||||||||||
Net (loss) income | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
(Loss) earnings per share: | |||||||||||||||
Basic and diluted | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Average common stock and common equivalent shares outstanding: | |||||||||||||||
Basic and diluted |
Three Months Ended | Six Months Ended | ||||||||||||||
July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | ||||||||||||
Net (loss) income | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Other comprehensive income (loss), net of income taxes: | |||||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | |||||||||||
Cash flow hedge adjustments | ( | ) | |||||||||||||
Pension plan adjustments | ( | ) | ( | ) | |||||||||||
Total other comprehensive income (loss), net of income taxes | ( | ) | ( | ) | |||||||||||
Comprehensive (loss) income | $ | ( | ) | $ | $ | ( | ) | $ |
Six Months Ended July 3, 2020 | |||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Envista Equity | Noncontrolling Interests | ||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||
Common stock-based award activity | — | — | — | — | |||||||||||||||||||
Net loss | — | — | ( | ) | — | ( | ) | — | |||||||||||||||
Other comprehensive loss | — | — | — | ( | ) | ( | ) | — | |||||||||||||||
Balance at April 3, 2020 | ( | ) | |||||||||||||||||||||
Common stock-based award activity | — | — | — | — | |||||||||||||||||||
Equity component of convertible senior notes, net of financing costs and taxes | — | — | — | — | |||||||||||||||||||
Purchase of capped calls related to issuance of convertible senior notes, net of taxes | — | ( | ) | — | — | ( | ) | — | |||||||||||||||
Net loss | — | — | ( | ) | — | ( | ) | — | |||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||
Changes in noncontrolling interests | — | — | — | — | — | ( | ) | ||||||||||||||||
Balance at July 3, 2020 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ |
Six Months Ended June 28, 2019 | |||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Former Parent Investment, Net | Accumulated Other Comprehensive Loss | Total Envista Equity | Noncontrolling Interests | |||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||
Former Parent common stock-based award activity | — | — | — | — | — | ||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||
Net transfers from Former Parent | — | — | — | — | — | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ) | ( | ) | — | ||||||||||||||||||
Changes in noncontrolling interests | — | — | — | — | — | — | ( | ) | |||||||||||||||||||
Balance at March 29, 2019 | $ | ( | ) | ||||||||||||||||||||||||
Former Parent common stock-based award activity | — | — | — | — | — | ||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||
Net transfers to Former Parent | — | — | — | ( | ) | — | ( | ) | — | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||
Changes in noncontrolling interests | — | — | — | — | — | — | ( | ) | |||||||||||||||||||
Balance at June 28, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | $ |
Six Months Ended | |||||||
July 3, 2020 | June 28, 2019 | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | ( | ) | $ | |||
Noncash items: | |||||||
Depreciation | |||||||
Amortization | |||||||
Allowance for doubtful accounts | |||||||
Stock-based compensation expense | |||||||
Restructuring charges | |||||||
Impairment charges | |||||||
Amortization of right-of-use assets | |||||||
Amortization of debt discount and issuance costs | |||||||
Change in trade accounts receivable, net | ( | ) | |||||
Change in inventories, net | ( | ) | ( | ) | |||
Change in trade accounts payable | ( | ) | ( | ) | |||
Change in prepaid expenses and other assets | ( | ) | ( | ) | |||
Change in accrued expenses and other liabilities | ( | ) | |||||
Change in operating lease liabilities | ( | ) | ( | ) | |||
Net cash (used in) provided by operating activities | ( | ) | |||||
Cash flows from investing activities: | |||||||
Acquisitions, net of cash acquired | ( | ) | |||||
Payments for additions to property, plant and equipment | ( | ) | ( | ) | |||
Proceeds from sales of property, plant and equipment | |||||||
All other investing activities | ( | ) | |||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of convertible senior notes | |||||||
Payment of debt issuance and other deferred financing costs | ( | ) | |||||
Proceeds from revolving line of credit | |||||||
Repayment of borrowings | ( | ) | |||||
Purchase of capped calls related to issuance of convertible senior notes | ( | ) | |||||
Proceeds from stock option exercises | |||||||
Net transfers to Former Parent | ( | ) | |||||
All other financing activities | ( | ) | |||||
Net cash provided by (used) in financing activities | ( | ) | |||||
Effect of exchange rate changes on cash and equivalents | ( | ) | |||||
Net change in cash and equivalents | |||||||
Beginning balance of cash and equivalents | |||||||
Ending balance of cash and equivalents | $ | $ | |||||
Supplemental data: | |||||||
Cash paid for interest | $ | $ | |||||
Cash paid for taxes | $ | $ | |||||
ROU assets obtained in exchange for operating lease obligations | $ | $ |
January 21, 2020 | |||
Assets acquired: | |||
Cash | $ | ||
Trade accounts receivable | |||
Inventories | |||
Prepaid expenses and other current assets | |||
Property, plant and equipment | |||
Goodwill | |||
Other intangible assets | |||
Total assets acquired | |||
Liabilities assumed: | |||
Trade accounts payable | ( | ) | |
Accrued expenses and other liabilities | ( | ) | |
Total liabilities assumed | ( | ) | |
Total net assets acquired | $ |
Balance at December 31, 2019 | $ | ||
Foreign currency translation | ( | ) | |
Provision for credit losses | |||
Write-offs charged against the allowance | ( | ) | |
Balance at July 3, 2020 | $ |
July 3, 2020 | December 31, 2019 | ||||||
Finished goods | $ | $ | |||||
Work in process | |||||||
Raw materials | |||||||
Inventories, gross | |||||||
Less: reserve for excess and obsolescence | ( | ) | ( | ) | |||
Inventories, net | $ | $ |
July 3, 2020 | December 31, 2019 | ||||||
Land and improvements | $ | $ | |||||
Buildings | |||||||
Machinery and equipment | |||||||
Property, plant and equipment, gross | |||||||
Less: accumulated depreciation | ( | ) | ( | ) | |||
Property, plant and equipment, net | $ | $ |
Specialty Products & Technologies | Equipment & Consumables | Total | |||||||||
Balance at December 31, 2019 | $ | $ | $ | ||||||||
Acquisitions | |||||||||||
Foreign currency translation and other | |||||||||||
Balance at July 3, 2020 | $ | $ | $ |
July 3, 2020 | December 31, 2019 | ||||||||||||||
Current | Noncurrent | Current | Noncurrent | ||||||||||||
Compensation and benefits | $ | $ | $ | $ | |||||||||||
Employee severance and other benefits | |||||||||||||||
Pension benefits | |||||||||||||||
Income and other taxes | |||||||||||||||
Contract liabilities | |||||||||||||||
Sales and product allowances | |||||||||||||||
Loss contingencies | |||||||||||||||
Other | |||||||||||||||
Total | $ | $ | $ | $ |
Notional Amount | (Loss) Gain Recognized in OCI | ||||||
Three Months Ended July 3, 2020 | |||||||
Interest rate contracts | $ | $ | |||||
Foreign currency contracts | ( | ) | |||||
Foreign currency denominated debt | ( | ) | |||||
Total | $ | $ | ( | ) |
Notional Amount | (Loss) Gain Recognized in OCI | ||||||
Six Months Ended July 3, 2020 | |||||||
Interest rate contracts | $ | $ | ( | ) | |||
Foreign currency contracts | |||||||
Foreign currency denominated debt | ( | ) | |||||
Total | $ | $ | ( | ) |
July 3, 2020 | December 31, 2019 | ||||||
Derivative assets: | |||||||
Prepaid expenses and other current assets | $ | $ | |||||
Other long-term assets | $ | $ | |||||
Derivative liabilities: | |||||||
Accrued expense and other liabilities | $ | $ | |||||
Other long-term liabilities | $ | $ | |||||
Non-derivative hedging instruments: | |||||||
Long-term debt | $ | $ |
Quoted Prices in Active Market (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
July 3, 2020: | |||||||||||||||
Assets: | |||||||||||||||
Cross-currency swap derivative contracts | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Cross-currency swap derivative contracts | $ | $ | $ | $ | |||||||||||
Interest rate swap derivative contracts | $ | $ | $ | $ | |||||||||||
Deferred compensation plans | $ | $ | $ | $ | |||||||||||
December 31, 2019: | |||||||||||||||
Assets: | |||||||||||||||
Interest rate swap derivative contracts | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Cross-currency swap derivative contracts | $ | $ | $ | $ | |||||||||||
Deferred compensation plans | $ | $ | $ | $ |
July 3, 2020 | December 31, 2019 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Assets: | |||||||||||||||
Cross-currency swap derivative contracts | $ | $ | $ | $ | |||||||||||
Interest rate swap derivative contracts | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Cross-currency swap derivative contracts | $ | $ | $ | $ | |||||||||||
Interest rate swap derivative contracts | $ | $ | $ | $ | |||||||||||
Long-term debt, excluding convertible senior notes due 2025 | $ | $ | $ | $ | |||||||||||
Convertible senior notes due 2025 | $ | $ | $ | $ |
Three Month Period Ended | Six Month Period Ended | ||||||||||||||
($ in millions) | July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | |||||||||||
Service cost | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Interest cost | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Expected return on plan assets | |||||||||||||||
Amortization of initial net obligation | ( | ) | ( | ) | ( | ) | |||||||||
Amortization of prior service credit | |||||||||||||||
Amortization of actuarial loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Curtailment and settlement gains recognized | |||||||||||||||
Net periodic pension cost | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Three Month Period Ended | Six Month Period Ended | ||||||||||||||
July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | ||||||||||||
Service cost: | |||||||||||||||
Selling, general and administrative expenses | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Other net periodic pension costs: | |||||||||||||||
Nonoperating income (expense), net | |||||||||||||||
Total | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Balance at December 31, 2019 | $ | ||
Accruals for warranties issued during the year | |||
Payments made | ( | ) | |
Effect of foreign currency translation | ( | ) | |
Balance at July 3, 2020 | $ |
July 3, 2020 | December 31, 2019 | ||||||
Senior term loan facility due 2022 ($650.0 million aggregate principal amount) (the “Term Loan Facility”), net of deferred debt issuance costs of $2.3 million and $1.3 million, respectively | $ | $ | |||||
Senior euro term loan facility due 2022 (€600.0 million aggregate principal amount) (the “Euro Term Loan Facility”), net of deferred debt issuance costs of $1.7 million and $0.9 million, respectively | |||||||
Senior multi-currency revolving credit facility ($250.0 million borrowing capacity) (the “Revolving Credit Facility”) | |||||||
Convertible senior notes, net of deferred debt issuance costs of $11.7 million and unamortized discount of $104.6 million | |||||||
Other | |||||||
Total debt | |||||||
Less: current portion | ( | ) | ( | ) | |||
Long-term debt | $ | $ |
Three and Six Months Ended | |||
July 3, 2020 | |||
Contractual interest expense | $ | ||
Amortization of debt issuance costs | |||
Amortization of debt discount | |||
Total interest expense | $ |
Foreign Currency Translation Adjustments | Unrealized Gain (Loss) on Cash Flow Hedges | Unrealized Pension Costs | Total Accumulated Other Comprehensive Loss | ||||||||||||
Three Months Ended July 3, 2020 | |||||||||||||||
Balance at April 3, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Other comprehensive income before reclassifications: | |||||||||||||||
Increase | |||||||||||||||
Income tax impact | |||||||||||||||
Other comprehensive income before reclassifications, net of income taxes | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||
Increase | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | |||||||||||||||
Net current period other comprehensive income, net of income taxes | |||||||||||||||
Balance at July 3, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Foreign Currency Translation Adjustments | Unrealized Gain (Loss) on Cash Flow Hedges | Unrealized Pension Costs | Total Accumulated Other Comprehensive Loss | ||||||||||||
Three Months Ended June 28, 2019 | |||||||||||||||
Balance at March 29, 2019 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||
Other comprehensive income before reclassifications: | |||||||||||||||
Increase | |||||||||||||||
Other comprehensive loss before reclassifications, net of income taxes | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||
Decrease | ( | ) | ( | ) | |||||||||||
Income tax impact | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | ( | ) | ( | ) | |||||||||||
Net current period other comprehensive income (loss), net of income taxes | ( | ) | |||||||||||||
Balance at June 28, 2019 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
Foreign Currency Translation Adjustments | Unrealized Gain (Loss) on Cash Flow Hedges | Unrealized Pension Costs | Total Accumulated Other Comprehensive Loss | ||||||||||||
Six Months Ended July 3, 2020 | |||||||||||||||
Balance at December 31, 2019 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||
Other comprehensive loss before reclassifications: | |||||||||||||||
Decrease | ( | ) | ( | ) | ( | ) | |||||||||
Income tax impact | ( | ) | |||||||||||||
Other comprehensive loss before reclassifications, net of income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||
Increase | |||||||||||||||
Income tax impact | ( | ) | ( | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | |||||||||||||||
Net current period other comprehensive (loss) income, net of income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Balance at July 3, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Foreign Currency Translation Adjustments | Unrealized Gain (Loss) on Cash Flow Hedges | Unrealized Pension Costs | Total Accumulated Other Comprehensive Loss | ||||||||||||
Six Months Ended June 28, 2019 | |||||||||||||||
Balance at December 31, 2018 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||
Other comprehensive loss before reclassifications: | |||||||||||||||
Decrease | ( | ) | ( | ) | |||||||||||
Other comprehensive loss before reclassifications, net of income taxes | ( | ) | ( | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||
Decrease | ( | ) | (a) | ( | ) | ||||||||||
Income tax impact | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | ( | ) | ( | ) | |||||||||||
Net current period other comprehensive loss, net of income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Balance at June 28, 2019 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
Specialty Products & Technologies | Equipment & Consumables | Total | |||||||||
Three Months Ended July 3, 2020 | |||||||||||
Geographical region: | |||||||||||
North America | $ | $ | $ | ||||||||
Western Europe | |||||||||||
Other developed markets | |||||||||||
Emerging markets | |||||||||||
Total | $ | $ | $ | ||||||||
Three Months Ended June 28, 2019 | |||||||||||
Geographical region: | |||||||||||
North America | $ | $ | $ | ||||||||
Western Europe | $ | ||||||||||
Other developed markets | $ | ||||||||||
Emerging markets | |||||||||||
Total | $ | $ | $ |
Specialty Products & Technologies | Equipment & Consumables | Total | |||||||||
Six Months Ended July 3, 2020 | |||||||||||
Geographical region: | |||||||||||
North America | $ | $ | $ | ||||||||
Western Europe | |||||||||||
Other developed markets | |||||||||||
Emerging markets | |||||||||||
Total | $ | $ | $ | ||||||||
Six Months Ended June 28, 2019 | |||||||||||
Geographical region: | |||||||||||
North America | $ | $ | $ | ||||||||
Western Europe | $ | ||||||||||
Other developed markets | $ | ||||||||||
Emerging markets | |||||||||||
Total | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||
July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | ||||||||||||
Consumables | $ | $ | $ | $ | |||||||||||
Equipment | |||||||||||||||
Total | $ | $ | $ | $ |
Employee Severance and Related | Facility Exit and Related | Total | |||||||||
Balance at December 31, 2019 | $ | $ | $ | ||||||||
Costs incurred | |||||||||||
Paid/settled | ( | ) | ( | ) | ( | ) | |||||
Balance at July 3, 2020 | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||
July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | ||||||||||||
Specialty Products & Technologies | $ | $ | $ | $ | |||||||||||
Equipment & Consumables | |||||||||||||||
Other | |||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||
July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | ||||||||||||
Cost of sales | $ | $ | $ | $ | |||||||||||
Selling, general and administrative expenses | |||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||
July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | ||||||||||||
Numerator: | |||||||||||||||
Net (loss) income | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Denominator: | |||||||||||||||
Weighted-average common shares outstanding used in basic and diluted (loss) earnings per share | |||||||||||||||
(Loss) earnings per share: | |||||||||||||||
Basic and diluted | $ | ( | ) | $ | $ | ( | ) | $ |
Three Months Ended | Six Months Ended | ||||||||||
July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | ||||||||
Stock-based awards |
Three Months Ended | Six Months Ended | ||||||||||||||
July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | ||||||||||||
Sales: | |||||||||||||||
Specialty Products & Technologies | $ | $ | $ | $ | |||||||||||
Equipment & Consumables | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Operating (loss) profit and reconciliation to (loss) income before income taxes: | |||||||||||||||
Specialty Products & Technologies | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Equipment & Consumables | ( | ) | ( | ) | |||||||||||
Other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Operating (loss) profit | ( | ) | ( | ) | |||||||||||
Nonoperating income (expense): | |||||||||||||||
Other income | |||||||||||||||
Interest expense, net | ( | ) | ( | ) | |||||||||||
(Loss) income before income taxes | $ | ( | ) | $ | $ | ( | ) | $ |
July 3, 2020 | December 31, 2019 | ||||||
Identifiable assets: | |||||||
Specialty Products & Technologies | $ | $ | |||||
Equipment & Consumables | |||||||
Other | |||||||
Total | $ | $ |
Three Months Ended | Six Months Ended | ||||||
June 28, 2019 | June 28, 2019 | ||||||
Allocated corporate expenses | $ | $ | |||||
Directly related charges: | |||||||
Insurance programs expenses | |||||||
Medical insurance programs expenses | |||||||
Deferred compensation program expenses | |||||||
Total related-party expenses | $ | $ |
• | additional personnel costs, including salaries, benefits and potential bonuses and/or stock-based compensation awards for staff additions to replace support provided by Danaher that is not covered by the Transition Services Agreement; and |
• | corporate governance costs, including board of director compensation and expenses, audit and other professional services fees, annual report and proxy statement costs, SEC filing fees, transfer agent fees, consulting and legal fees and stock exchange listing fees. |
• | sales from acquired businesses; |
• | sales from discontinued products; and |
• | the impact of currency translation. |
• | the period-to-period change in sales; and |
• | the period-to-period change in sales after applying current period foreign exchange rates to the prior year period. |
Three Months Ended | ||||||||||||||||
($ in millions) | July 3, 2020 | June 28, 2019 | $ Variance | % Change | ||||||||||||
Sales | $ | 362.0 | 100.0 | % | $ | 712.1 | 100.0 | % | (350.1 | ) | (49.2 | )% | ||||
Cost of sales | 211.5 | 58.4 | % | 318.5 | 44.7 | % | (107.0 | ) | (33.6 | )% | ||||||
Gross profit | 150.5 | 41.6 | % | 393.6 | 55.3 | % | (243.1 | ) | (61.8 | )% | ||||||
Operating costs: | ||||||||||||||||
SG&A expenses | 241.9 | 66.8 | % | 278.0 | 39.0 | % | (36.1 | ) | (13.0 | )% | ||||||
R&D expenses | 16.5 | 4.6 | % | 39.7 | 5.6 | % | (23.2 | ) | (58.4 | )% | ||||||
Operating (loss) profit | (107.9 | ) | (29.8 | )% | 75.9 | 10.7 | % | (183.8 | ) | (242.2 | )% | |||||
Nonoperating income (expense), net | ||||||||||||||||
Other income | 0.1 | — | % | 1.3 | 0.2 | % | (1.2 | ) | NM | |||||||
Interest expense, net | (14.5 | ) | (4.0 | )% | — | — | % | (14.5 | ) | NM | ||||||
(Loss) earnings before income taxes | (122.3 | ) | (33.8 | )% | 77.2 | 10.8 | % | (199.5 | ) | (258.4 | )% | |||||
Income tax (benefit) expense | (28.8 | ) | (8.0 | )% | 15.7 | 2.2 | % | (44.5 | ) | (283.4 | )% | |||||
Net (loss) income | $ | (93.5 | ) | (25.8 | )% | $ | 61.5 | 8.6 | % | (155.0 | ) | (252.0 | )% | |||
Effective tax rate | 23.5 | % | 20.3 | % |
Six Months Ended | ||||||||||||||||
($ in millions) | July 3, 2020 | June 28, 2019 | $ Variance | % Change | ||||||||||||
Sales | $ | 909.2 | 100.0 | % | $ | 1,371.8 | 100.0 | % | (462.6 | ) | (33.7 | )% | ||||
Cost of sales | 480.3 | 52.8 | % | 615.1 | 44.8 | % | (134.8 | ) | (21.9 | )% | ||||||
Gross profit | 428.9 | 47.2 | % | 756.7 | 55.2 | % | (327.8 | ) | (43.3 | )% | ||||||
Operating costs: | ||||||||||||||||
SG&A expenses | 510.6 | 56.2 | % | 552.9 | 40.3 | % | (42.3 | ) | (7.7 | )% | ||||||
R&D expenses | 51.2 | 5.6 | % | 83.0 | 6.1 | % | (31.8 | ) | (38.3 | )% | ||||||
Operating (loss) profit | (132.9 | ) | (14.6 | )% | 120.8 | 8.8 | % | (253.7 | ) | (210.0 | )% | |||||
Nonoperating income (expense), net | ||||||||||||||||
Other income | 0.2 | — | % | 1.4 | 0.1 | % | (1.2 | ) | NM | |||||||
Interest expense, net | (17.8 | ) | (2.0 | )% | — | — | % | (17.8 | ) | NM | ||||||
(Loss) earnings before income taxes | (150.5 | ) | (16.6 | )% | 122.2 | 8.9 | % | (272.7 | ) | (223.2 | )% | |||||
Income tax (benefit) expense | (39.8 | ) | (4.4 | )% | 22.8 | 1.7 | % | (62.6 | ) | (274.6 | )% | |||||
Net (loss) income | $ | (110.7 | ) | (12.2 | )% | $ | 99.4 | 7.2 | % | (210.1 | ) | (211.4 | )% | |||
Effective tax rate | 26.4 | % | 18.7 | % |
% Change Three Month Period Ended July 3, 2020 vs. Comparable 2019 Period | % Change Six Month Period Ended July 3, 2020 vs. Comparable 2019 Period | ||||
Total sales growth (GAAP) | (49.2 | )% | (33.7 | )% | |
Less the impact of: | |||||
Acquisitions | (0.3 | )% | (0.2 | )% | |
Discontinued products | 1.6 | % | 1.2 | % | |
Currency exchange rates | 1.7 | % | 1.7 | % | |
Core sales growth (non-GAAP) | (46.2 | )% | (31.0 | )% |
• | Lower sales primarily due to the impact of the COVID-19 pandemic, an unfavorable sales mix, higher restructuring and productivity improvement expenses, excess capacity costs, incremental corporate costs and the impact of foreign currency exchange rates, partially offset by cost reduction initiatives including employee furloughs, pay cuts, reduced discretionary spend including sales, marketing and travel and incremental period-over-period savings associated with restructuring and productivity improvement actions taken in prior periods. |
Three Months Ended | Six Months Ended | ||||||||||||||
July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | ||||||||||||
Specialty Products & Technologies | $ | 184.6 | $ | 347.3 | $ | 457.2 | $ | 696.1 | |||||||
Equipment & Consumables | 177.4 | 364.8 | 452.0 | 675.7 | |||||||||||
Total | $ | 362.0 | $ | 712.1 | $ | 909.2 | $ | 1,371.8 |
Three Months Ended | Six Months Ended | ||||||||||||||
($ in millions) | July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | |||||||||||
Sales | $ | 184.6 | $ | 347.3 | $ | 457.2 | $ | 696.1 | |||||||
Operating (loss) profit | $ | (19.2 | ) | $ | 54.5 | $ | (11.4 | ) | $ | 120.6 | |||||
Operating (loss) profit as a % of sales | (10.4 | )% | 15.7 | % | (2.5 | )% | 17.3 | % |
% Change Three Month Period Ended July 3, 2020 vs. Comparable 2019 Period | % Change Six Month Period Ended July 3, 2020 vs. Comparable 2019 Period | ||||
Total sales growth (GAAP) | (46.8 | )% | (34.3 | )% | |
Less the impact of: | |||||
Acquisitions | (0.6 | )% | (0.5 | )% | |
Discontinued products | 0.5 | % | 0.9 | % | |
Currency exchange rates | 1.3 | % | 1.5 | % | |
Core sales growth (non-GAAP) | (45.6 | )% | (32.4 | )% |
• | Lower sales with an unfavorable sales mix, higher restructuring and productivity improvement expenses, excess capacity costs and the impact of foreign currency exchange rates, partially offset by cost reduction initiatives including employee furloughs, pay cuts, reduced discretionary spend including sales, marketing and travel and incremental period-over-period savings associated with restructuring and productivity improvement actions taken in prior periods. |
Three Months Ended | Six Months Ended | ||||||||||||||
($ in millions) | July 3, 2020 | June 28, 2019 | July 3, 2020 | June 28, 2019 | |||||||||||
Sales | $ | 177.4 | $ | 364.8 | $ | 452.0 | $ | 675.7 | |||||||
Operating (loss) profit | $ | (53.8 | ) | $ | 29.2 | $ | (73.1 | ) | $ | 17.0 | |||||
Operating (loss) profit as a % of sales | (30.3 | )% | 8.0 | % | (16.2 | )% | 2.5 | % |
% Change Three Month Period Ended July 3, 2020 vs. Comparable 2019 Period | % Change Six Month Period Ended July 3, 2020 vs. Comparable 2019 Period | ||||
Total sales growth (GAAP) | (51.4 | )% | (33.1 | )% | |
Less the impact of: | |||||
Discontinued products | 2.6 | % | 1.6 | % | |
Currency exchange rates | 1.9 | % | 2.1 | % | |
Core sales growth (non-GAAP) | (46.9 | )% | (29.4 | )% |
• | Lower sales with an unfavorable sales mix, higher restructuring and productivity improvement expenses, excess capacity costs and the impact of foreign currency exchange rates, partially offset by cost reduction initiatives including employee furloughs, pay cuts, reduced discretionary spend including sales, marketing and travel and incremental period-over-period savings associated with restructuring and productivity improvement actions taken in prior periods. |
Six Months Ended | |||||||
($ in millions) | July 3, 2020 | June 28, 2019 | |||||
Net cash (used in) provided by operating activities | $ | (57.6 | ) | $ | 112.7 | ||
Acquisitions, net of cash acquired | $ | (40.7 | ) | $ | — | ||
Payments for additions to property, plant and equipment | (21.4 | ) | (42.1 | ) | |||
Proceeds from sales of property, plant and equipment | — | 0.4 | |||||
All other investing activities | 7.7 | (0.2 | ) | ||||
Net cash used in investing activities | $ | (54.4 | ) | $ | (41.9 | ) | |
Proceeds from issuance of convertible senior notes | $ | 517.5 | $ | — | |||
Payment of debt issuance costs and other deferred financing costs | (17.3 | ) | — | ||||
Proceeds from revolving line of credit | 249.8 | — | |||||
Repayment of borrowings | (0.1 | ) | — | ||||
Purchase of capped calls related to issuance of convertible senior notes | (20.7 | ) | — | ||||
Proceeds from stock option exercises | 5.0 | — | |||||
Net transfers to Former Parent | — | (70.8 | ) | ||||
All other financing activities | (1.1 | ) | — | ||||
Net cash provided by (used in) financing activities | $ | 733.1 | $ | (70.8 | ) |
• | increasing our vulnerability to adverse economic and industry conditions; |
• | limiting our ability to obtain additional financing; |
• | requiring the dedication of a substantial portion of our cash flow from operations to service our indebtedness, which will reduce the amount of cash available for other purposes; |
• | limiting our flexibility to plan for, or react to, changes in our businesses and industries; |
• | diluting the interests of our existing stockholders as a result of issuing shares of our common stock upon conversion of the Notes; and |
• | placing us at a possible competitive disadvantage with competitors that are less leveraged than us or have better access to capital. |
• | our quarterly or annual earnings, or those of other companies in our industry; |
• | actual or anticipated fluctuations in our operating results; |
• | changes in earnings estimated by securities analysts or our ability to meet those estimates; |
• | the operating and stock price performance of other comparable companies; |
• | changes to the regulatory and legal environment in which we operate; |
• | market and business conditions related to COVID-19; |
• | overall market fluctuations and domestic and worldwide economic conditions; and |
• | other factors described in our 2019 10-K and in this Quarterly Report. |
• | the inability of our stockholders to call a special meeting; |
• | the inability of our stockholders to act by written consent; |
• | rules regarding how stockholders may present proposals or nominate directors for election at stockholder meetings; |
• | the right of our board of directors to issue preferred stock without stockholder approval; |
• | the division of our board of directors into three classes of directors, with each class serving a staggered three-year term, and this classified board provision could have the effect of making the replacement of incumbent directors more time consuming and difficult; |
• | a provision that stockholders may only remove directors with cause; |
• | the ability of our directors, and not stockholders, to fill vacancies (including those resulting from an enlargement of our board of directors) on our board of directors; and |
• | the requirement that the affirmative vote of stockholders holding at least two-thirds of our voting stock is required to amend our amended and restated bylaws and certain provisions in our amended and restated certificate of incorporation. |
Exhibit Number | Description |
3.1 | |
3.2 | |
4.1 | |
4.2 | |
10.1 | |
10.2 | |
10.3 | |
10.4 | |
31.1 | |
31.2 | |
32.1 | |
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
ENVISTA HOLDINGS CORPORATION | ||
Date: July 30, 2020 | By: | /s/ Howard H. Yu |
Howard H. Yu | ||
Senior Vice President and Chief Financial Officer | ||
Date: July 30, 2020 | By: | /s/ Kari-Lyn Moore |
Kari-Lyn Moore | ||
Vice President and Chief Accounting Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Envista Holdings Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | ||
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | ||
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | ||
Date: July 30, 2020 | ||
/s/ Amir Aghdaei | ||
Amir Aghdaei | ||
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Envista Holdings Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | ||
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | ||
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | ||
Date: July 30, 2020 | ||
/s/ Howard H. Yu | ||
Howard H. Yu | ||
Senior Vice President and Chief Financial Officer |
I, Amir Aghdaei, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Envista Holdings Corporation for the period ended July 3, 2020, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Envista Holdings Corporation. | ||||
Date: July 30, 2020 | ||||
/s/ Amir Aghdaei | ||||
Amir Aghdaei | ||||
President and Chief Executive Officer | ||||
I, Howard H. Yu, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Envista Holdings Corporation for the period ended July 3, 2020, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Envista Holdings Corporation. | ||||
Date: July 30, 2020 | ||||
/s/ Howard H. Yu | ||||
Howard H. Yu | ||||
Senior Vice President and Chief Financial Officer |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
Jul. 03, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 30.6 | $ 22.8 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000.0 | 500,000,000.0 |
Common stock, shares issued (in shares) | 159,400,000 | 158,700,000 |
Common stock, shares outstanding (in shares) | 159,300,000 | 158,700,000 |
Preferred shares authorized (in shares) | 15,000,000.0 | 15,000,000.0 |
Preferred shares issued (in shares) | 0 | 0 |
Preferred shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated and Combined Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2020 |
Jun. 28, 2019 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Income Statement [Abstract] | ||||
Sales | $ 362.0 | $ 712.1 | $ 909.2 | $ 1,371.8 |
Cost of sales | 211.5 | 318.5 | 480.3 | 615.1 |
Gross profit | 150.5 | 393.6 | 428.9 | 756.7 |
Operating expenses: | ||||
Selling, general and administrative | 241.9 | 278.0 | 510.6 | 552.9 |
Research and development | 16.5 | 39.7 | 51.2 | 83.0 |
Operating (loss) profit | (107.9) | 75.9 | (132.9) | 120.8 |
Nonoperating income (expense): | ||||
Other income | 0.1 | 1.3 | 0.2 | 1.4 |
Interest expense, net | (14.5) | 0.0 | (17.8) | 0.0 |
(Loss) income before income taxes | (122.3) | 77.2 | (150.5) | 122.2 |
Income tax (benefit) expense | (28.8) | 15.7 | (39.8) | 22.8 |
Net (loss) income | $ (93.5) | $ 61.5 | $ (110.7) | $ 99.4 |
(Loss) earnings per share: | ||||
Basic and diluted (in USD per share) | $ (0.59) | $ 0.48 | $ (0.69) | $ 0.78 |
Average common stock and common equivalent shares outstanding: | ||||
Basic and diluted (in shares) | 159.5 | 127.9 | 159.3 | 127.9 |
Condensed Consolidated and Combined Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2020 |
Jun. 28, 2019 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (93.5) | $ 61.5 | $ (110.7) | $ 99.4 |
Other comprehensive income (loss), net of income taxes: | ||||
Foreign currency translation adjustments | 33.1 | 31.2 | (4.1) | (6.6) |
Cash flow hedge adjustments | 0.0 | 0.0 | (8.9) | 0.0 |
Pension plan adjustments | 0.3 | (0.7) | 0.7 | (0.6) |
Total other comprehensive income (loss), net of income taxes | 33.4 | 30.5 | (12.3) | (7.2) |
Comprehensive (loss) income | $ (60.1) | $ 92.0 | $ (123.0) | $ 92.2 |
Business and Basis of Presentation |
6 Months Ended |
---|---|
Jul. 03, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Separation and Initial Public Offering Envista Holdings Corporation (together with its subsidiaries, “Envista” or the “Company”) was formed as a wholly-owned subsidiary of Danaher Corporation (“Danaher” or “Former Parent”). Danaher formed Envista to ultimately acquire, own and operate the Dental business of Danaher. On September 20, 2019, the Company completed an initial public offering (“IPO”) resulting in the issuance of 30.8 million shares of its common stock (including shares issued pursuant to the underwriters’ option to purchase additional shares) to the public, which represented 19.4% of the Company’s outstanding common stock, at $22.00 per share, the initial public offering price, for total net proceeds, after deducting underwriting discounts and commissions, of $643 million. In connection with the completion of the IPO, through a series of equity and other transactions, Danaher transferred substantially all of its Dental business to the Company. As consideration for the transfer of the Dental business to the Company, the Company paid Danaher approximately $2.0 billion, which included the net proceeds from the IPO and the net proceeds from term debt financing, as further discussed in Note 13, and issued to Danaher 127.9 million shares of the Company’s common stock. The transactions described above related to the transfer of the Dental business are collectively referred to herein as the “Separation.” On November 15, 2019, Danaher announced an exchange offer whereby Danaher stockholders could exchange all or a portion of Danaher common stock for shares of the Company’s common stock owned by Danaher. The disposition of the Company’s shares (the “Split-Off”) was completed on December 18, 2019 and resulted in the full separation of the Company and disposal of Danaher’s entire ownership and voting interest in the Company. Business Overview The Company provides products that are used to diagnose, treat and prevent disease and ailments of the teeth, gums and supporting bone, as well as to improve the aesthetics of the human smile. The Company is a worldwide provider of a broad range of dental implants, orthodontic appliances, general dental consumables, equipment and services and is dedicated to driving technological innovations that help dental professionals improve clinical outcomes and enhance productivity. The Company operates in two business segments: Specialty Products & Technologies and Equipment & Consumables. The Company’s Specialty Products & Technologies segment develops, manufactures and markets dental implant systems, dental prosthetics and associated treatment software and technologies, as well as orthodontic bracket systems, aligners and lab products. The Company’s Equipment & Consumables segment develops, manufactures and markets dental equipment and supplies used in dental offices, including digital imaging systems, software and other visualization/magnification systems; handpieces and associated consumables; treatment units and other dental practice equipment; endodontic systems and related consumables; and restorative materials and instruments, rotary burs, impression materials, bonding agents and cements and infection prevention products. Basis of Presentation For periods after the Separation, the financial statements are prepared on a consolidated basis. Prior to the Separation, the Company operated as part of Danaher and not as a separate, publicly-traded company and the Company’s financial statements are combined, have been prepared on a stand-alone basis and are derived from Danaher's consolidated financial statements and accounting records. The Condensed Consolidated and Combined Financial Statements reflect the financial position, results of operations and cash flows related to the Dental business that was transferred to the Company. All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included as a component in the financial statements. Prior to the Separation, the financial statements also included allocations of certain general, administrative, sales and marketing expenses and cost of sales from Danaher’s corporate office and from other Danaher businesses to the Company and allocations of related assets, liabilities and Danaher’s investment, as applicable. The allocations were determined on a reasonable basis; however, the amounts are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company been an entity that operated independently of Danaher. Related-party allocations are discussed further in Note 21. Prior to the Separation, the Company was dependent upon Danaher for all of its working capital and financing requirements under Danaher’s centralized approach to cash management and financing of its operations. Financial transactions relating to the Company were accounted for through the Former Parent investment, net account of the Company. Accordingly, none of Danaher’s cash, cash equivalents or debt was assigned to the Company in these financial statements for the periods prior to the Separation. Former Parent investment, net, which included retained earnings, represented Danaher’s interest in the recorded net assets of the Company. Prior to the Separation, all significant transactions between the Company and Danaher have been included in the accompanying Condensed Consolidated and Combined Financial Statements. Transactions with Danaher are reflected in the accompanying Condensed Consolidated and Combined Statements of Changes in Equity as “Net transfers to Former Parent.” In connection with the Separation, the Former Parent investment, net balance was redesignated within equity and allocated between common stock and additional paid-in capital based on the number of the Company’s common shares outstanding at the Separation. In periods subsequent to the Separation, the Company may make adjustments to balances transferred at the Separation date and may record additional adjustments in the future. Any such adjustments are recorded through additional paid-in capital in equity. All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying Condensed Consolidated and Combined Financial Statements. The Condensed Consolidated and Combined Financial Statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying Condensed Consolidated and Combined Financial Statements contain all adjustments (consisting of only normal recurring adjustments and reclassifications to conform to current year presentation) necessary to present fairly the financial position of the Company as of July 3, 2020 and December 31, 2019, and its results of operations for the three and six month periods ended July 3, 2020 and June 28, 2019 and cash flows for the six month periods ended July 3, 2020 and June 28, 2019. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s combined financial statements and accompanying notes for the three years ended December 31, 2019, included in the Annual Report on Form 10-K filed by the Company on February 21, 2020. Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the novel coronavirus (“COVID-19”) pandemic. The extent of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict because of the dynamic and evolving nature of the crisis. In response to COVID-19 many dental associations recommended that dental practices delay elective procedures and only perform emergency procedures. As a result, there have been widespread temporary closures of dental practices around the world due to the pandemic, except to perform emergency procedures, thereby preventing our end customers from conducting most or all business activities and significantly adversely impacting our sales. During the three months ended July 3, 2020, dental practices in the markets in which we operate have started to reopen, however, the average practice’s patient volume is below pre-COVID-19 levels. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a local and/or material global economic slowdown or global recession. Such economic disruption could have a material adverse effect on the Company as the Company’s customers curtail and reduce capital and overall spending. Policymakers around the globe have responded with fiscal policy actions to support the healthcare industry and economy as a whole. The magnitude and overall effectiveness of these actions remains uncertain. The severity of the impact of the COVID-19 pandemic on the Company's business will depend on a number of factors, including, but not limited to, the scope and duration of the pandemic, the extent and severity of the impact on the Company's customers, the measures that have been and may be taken to contain the virus or mitigate its impact, U.S. and foreign government actions to respond to the reduction in global economic activity, the ability of the Company to continue to manufacture and source its products, the impact of the pandemic and associated economic downturn on the Company’s ability to access capital if and when needed and how quickly and to what extent normal economic and operating conditions can resume, all of which are uncertain and cannot be predicted. Even after the COVID-19 outbreak has subsided, the Company may continue to experience materially adverse impacts on the Company’s financial condition and results of operations. The Company's future results of operations and liquidity could be adversely impacted by delays in payments of outstanding receivable amounts beyond normal payment terms, supply chain disruptions and uncertain demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. As of the date of issuance of these Condensed Consolidated and Combined Financial Statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. Accounting Standards Recently Adopted—In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820), which modified the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income (loss). The Company adopted this guidance on January 1, 2020, which did not have a significant impact on the Company’s Condensed Consolidated and Combined Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplified the test for goodwill impairment by removing Step 2 from the goodwill impairment test. Companies will now perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value not to exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted this guidance on January 1, 2020, which did not have a significant impact on the Company’s Condensed Consolidated and Combined Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that uses a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. The Company adopted this guidance on January 1, 2020, which did not have a significant impact on the Company’s Condensed Consolidated and Combined Financial Statements. Refer to Note 3 for additional disclosures required by Topic 326. Accounting Standards Not Yet Adopted—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 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The ASU is effective for public entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. If an entity elects to apply any of the amendments for an eligible hedging relationship existing as of the beginning of the interim period that includes March 12, 2020, any adjustments as a result of those elections must be reflected as of the beginning of that interim period and recognized in accordance with the guidance in Reference Rate Reform Subtopics 848-30, 848-40, and 848-50 (as applicable). If an entity elects to apply any of the amendments for a new hedging relationship entered into between the beginning of the interim period that includes March 12, 2020 and March 12, 2020, any adjustments as a result of those elections must be reflected as of the beginning of the hedging relationship and recognized in accordance with the guidance in Reference Rate Reform Subtopics 848-30, 848-40, and 848-50 (as applicable). The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company has not yet completed its assessment of the impact of the new standard on the Company’s Condensed Consolidated and Combined Financial Statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The ASU is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company has not yet completed its assessment of the impact of the new standard on the Company’s Condensed Consolidated and Combined Financial Statements. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans, which amends Accounting Standards Codification (“ASC”) 715 to add, remove, and clarify disclosure requirements related to defined benefit pension plans. The ASU is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company has not yet completed its assessment of the impact of the new standard on the Company’s Condensed Consolidated and Combined Financial Statements.
|
Acquisitions |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ACQUISITIONS The Company continually evaluates potential acquisitions that either strategically fit with the Company’s existing portfolio or expand the Company’s portfolio into new and attractive business areas. The Company has completed a number of acquisitions that have been accounted for as business combinations and have resulted in the recognition of goodwill in the Company’s financial statements. Among other things, goodwill arises because the purchase prices for these businesses reflect a number of factors including the future earnings and cash flow potential of these businesses, the multiple to earnings, cash flow and other factors at which similar businesses have been purchased by other acquirers, the competitive nature of the processes by which the Company acquired the businesses, avoidance of the time and costs which would be required (and the associated risks that would be encountered) to enhance the Company’s existing product offerings to key target markets and enter into new and profitable businesses and the complementary strategic fit and resulting synergies these businesses bring to existing operations. The Company makes an initial allocation of the purchase price at the date of acquisition based upon its understanding of the fair value of the acquired assets and assumed liabilities. The Company obtains this information during due diligence and through other sources. In the months after closing, up to 12 months, as the Company obtains additional information that existed at the acquisition date about these assets and liabilities, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Only items that existed as of the acquisition date are considered for subsequent adjustment. The Company will make appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required. On January 21, 2020, the Company acquired all of the shares of Matricel GmbH (“Matricel”) for cash consideration of approximately $44 million. Matricel, a German company, is a provider of biomaterials used in dental applications and complements the Company’s Specialty Products & Technologies segment. For the three and six months ended July 3, 2020, Matricel’s revenue and earnings were not material to the Condensed Consolidated and Combined Statement of Operations. During the three months ended July 3, 2020, the Company finalized the working capital adjustment and received $0.8 million, which was recorded as a reduction of goodwill. The Company is continuing to evaluate the deductibility of goodwill for income tax purposes. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date ($ in millions):
The excess of the purchase price over the fair value assigned to the assets acquired and liabilities assumed represents the goodwill resulting from the acquisition. Goodwill attributable to the acquisition has been recorded as a non-current asset and is not amortized, but is subject to review at least on an annual basis for impairment. Goodwill recognized was primarily attributable to expected operating efficiencies and expansion opportunities in the business acquired. The pro forma impact of this acquisition is not presented as it was not considered material to the Company's Condensed Consolidated and Combined Financial Statements. The intangible assets acquired consist of technology and customer relationships. The weighted average amortization period of the acquired intangible assets in the aggregate is 10 years.
|
Credit Losses |
6 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||
Credit Loss [Abstract] | |||||||||||||||||||||||||||||
Credit Losses | CREDIT LOSSES The allowance for credits losses is a valuation account deducted from accounts receivable to present the net amount expected to be collected. Accounts receivable are charged off against the allowance when management believes the uncollectibility of an accounts receivable balance is confirmed. Management estimates the adequacy of the allowance by using relevant available information, from internal and external sources, relating to past events, current conditions and forecasts. Historical credit loss experience provides the basis for estimation of expected credit losses and is adjusted as necessary using the relevant information available. The allowance for credit losses is measured on a collective basis when similar risk characteristics exist. The Company has identified one portfolio segment based on the following risk characteristics: geographic regions, product lines, default rates and customer specific factors. The factors used by management in its credit loss analysis are inherently subject to uncertainty. The extent of the impact of the COVID-19 pandemic on the Company's business is highly uncertain and difficult to predict. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic, including the impact of delays in payments of outstanding receivable amounts beyond normal payment terms. If actual results are not consistent with management’s estimates and assumptions, the allowance for credit losses may be overstated or understated and a charge or credit to net income (loss) may be required. The rollforward of the allowance for credit losses is summarized as follows ($ in millions):
|
Inventories |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES The classes of inventory are summarized as follows ($ in millions):
|
Property, Plant and Equipment |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT The classes of property, plant and equipment are summarized as follows ($ in millions):
|
Goodwill |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | GOODWILL The following is a rollforward of the Company’s goodwill ($ in millions):
In addition to the annual impairment test, the Company is required to regularly assess whether a “triggering” event has occurred which would require interim impairment testing. Among other factors, the Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of the reporting units. Based on this assessment the Company did not identify any “triggering” events, which would indicate an impairment of goodwill is more likely than not as of July 3, 2020. The Company will continue to assess whether a “triggering” event has occurred which would require an interim impairment test and will perform an annual impairment test of goodwill during the fourth quarter. Determining the fair value of a reporting unit for purposes of the goodwill impairment test is judgmental in nature and involves the use of estimates and assumptions. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and also the magnitude of any such charge. Unforeseen negative changes in future business or other market conditions for any of our reporting units including margin compression or loss of business, could cause recorded goodwill to be impaired in the future. |
Accrued Expenses And Other Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses and other [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Liabilities | ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities were as follows ($ in millions):
|
Hedging Transactions And Derivative Financial Instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedging Transactions and Derivative Financial Instruments | The Company uses cross-currency swap derivative contracts to partially hedge its net investments in foreign operations against adverse movements in exchange rates between the U.S. dollar and the euro. The cross-currency swap derivative contracts are agreements to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. On September 20, 2019, the Company entered into cross-currency swap derivative contracts with respect to its $650 million senior unsecured term loan facility. These contracts effectively convert the $650 million senior unsecured term loan facility to an obligation denominated in euros and partially offsets the impact of changes in currency rates on foreign currency denominated net investments. The changes in the fair value of these instruments are recorded in accumulated other comprehensive loss in equity, partially offsetting the foreign currency translation adjustment of the Company’s related net investment that is also recorded in accumulated other comprehensive loss as reflected in Note 15. Any ineffective portions of net investment hedges are reclassified from accumulated other comprehensive loss into income during the period of change. The interest income or expense from these swaps is recorded in interest expense in the Company’s Condensed Consolidated and Combined Statements of Operations consistent with the classification of interest expense attributable to the underlying debt. These instruments mature on dates ranging from September 2020 to September 2022. The Company also has foreign currency denominated long-term debt in the amount of €600.0 million. This senior unsecured term loan facility represents a partial hedge of the Company’s net investment in foreign operations against adverse movements in exchange rates between the U.S. dollar and the euro. The euro senior unsecured term loan facility is designated and qualifies as a non-derivative hedging instrument. Accordingly, the foreign currency translation of the euro senior unsecured term loan facility is recorded in accumulated other comprehensive loss in equity in the accompanying Condensed Consolidated Balance Sheets, offsetting the foreign currency translation adjustment of the Company’s related net investment that is also recorded in accumulated other comprehensive loss (see Note 15). Any ineffective portions of net investment hedges are reclassified from accumulated other comprehensive loss into income during the period of change. The euro senior unsecured term loan facility matures in September 2022. Refer to Note 13 for a further discussion of the above noted loan facilities. The Company uses interest rate swap derivative contracts to reduce its variability of cash flows related to interest payments with respect to its senior unsecured term loans. The interest rate swap contracts exchange interest payments based on variable rates for interest payments based on fixed rates. The changes in the fair value of these instruments are recorded in accumulated other comprehensive loss in equity (see Note 15). Any ineffective portions of the cash flow hedges are reclassified from accumulated other comprehensive loss into income during the period of change. The interest income or expense from these swaps is recorded in interest expense in the Company’s Condensed Consolidated and Combined Statements of Operations consistent with the classification of interest expense attributable to the underlying debt. These instruments mature on dates ranging from September 2020 to September 2022. The following table summarizes the notional values as of July 3, 2020 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive loss (“OCI”) for the three and six months ended July 3, 2020 ($ in millions):
The Company did not reclassify any deferred gains or losses related to net investment and cash flow hedges from accumulated other comprehensive loss to income during the three and six months ended July 3, 2020. In addition, the Company did not have any ineffectiveness related to net investment and cash flow hedges during the three and six months ended July 3, 2020. The cash inflows and outflows associated with the Company’s derivative contracts designated as net investment hedges are classified in investing activities in the accompanying Condensed Consolidated and Combined Statements of Cash Flows. The Company did not have any such derivatives during the three and six months ended June 28, 2019. The Company’s derivative instruments, as well as its non-derivative debt instruments designated and qualifying as net investment hedges, were classified in the Company’s Condensed Consolidated Balance Sheets as follows ($ in millions):
|
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value where the Company’s assets and liabilities are required to be carried at fair value and provide for certain disclosures related to the valuation methods used within a valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation; and Level 3 inputs are unobservable inputs based on the Company’s assumptions. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows ($ in millions):
Derivative Instruments The cross-currency swap derivative contracts are classified as Level 2 in the fair value hierarchy as they are measured using the income approach with the relevant interest rates and foreign currency current exchange rates and forward curves as inputs. The interest rate swap derivative contracts are classified as Level 2 in the fair value hierarchy as they are measured using the income approach with the relevant interest rates and forward curves as inputs. Refer to Note 8 for additional information. Deferred Compensation Plans Certain management employees of the Company participate in nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis. All amounts deferred under this plan are unfunded, unsecured obligations and are presented as a component of the Company’s compensation and benefits accrual included in accrued expenses in the accompanying Condensed Consolidated Balance Sheets (refer to Note 7). Participants may choose among alternative earnings rates for the amounts they defer, which are primarily based on investment options within the Company’s 401(k) program. Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts, which are based on the applicable earnings rates on investment options within the Company’s 401(k) program. Amounts voluntarily deferred by employees into the Company stock fund and amounts contributed to participant accounts by the Company are deemed invested in the Company’s common stock and future distributions of such contributions will be made solely in shares of Company common stock, and therefore are not reflected in the above amounts. Fair Value of Financial Instruments The carrying amounts and fair values of the Company’s financial instruments were as follows ($ in millions):
|
Pension And Other Benefit Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Benefit Plans | PENSION AND OTHER BENEFIT PLANS The following sets forth the components of the Company’s net periodic benefit costs of the defined benefit pension plans ($ in millions): Components of net periodic pension cost:
The net periodic benefit costs are reflected in the following captions in the accompanying Condensed Consolidated and Combined Statements of Operations ($ in millions):
|
Warranty |
6 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Warranty | WARRANTY The Company generally accrues estimated warranty costs at the time of sale. In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly and appropriately maintained. Warranty periods depend on the nature of the product and range from 90 days up to the life of the product. The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor and in certain instances estimated property damage. The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known. The following is a rollforward of the Company’s accrued warranty liability ($ in millions):
|
Litigation And Contingencies |
6 Months Ended |
---|---|
Jul. 03, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation And Contingencies | LITIGATION AND CONTINGENCIES For a description of the Company’s litigation and contingencies, refer to Note 12 of the Company’s Consolidated and Combined Financial Statements as of and for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The Company records accruals for loss contingencies associated with these legal matters when it is probable that a liability will be incurred, and the amount of the loss can be reasonably estimated. The Company has determined that the liabilities associated with certain litigation matters are probable and can be reasonably estimated and has accrued $92 million and $87 million as of July 3, 2020 and December 31, 2019, respectively, which are included in accrued liabilities in the condensed consolidated balance sheets. The Company has accrued for these matters and will continue to monitor each related legal issue and adjust accruals as might be warranted based on new information and further developments in accordance with ASC 450-20-25. Amounts accrued for legal contingencies often result from a complex series of judgments about future events and uncertainties that rely heavily on estimates and assumptions including timing of related payments. The ability to make such estimates and judgments can be affected by various factors including, among other things, whether damages sought in the proceedings are unsubstantiated or indeterminate; legal discovery has not commenced or is not complete; proceedings are in early stages; matters present legal uncertainties; there are significant facts in dispute; procedural or jurisdictional issues; the uncertainty and unpredictability of the number of potential claims; or there are numerous parties involved. To the extent adverse verdicts have been rendered against the Company, the Company does not record an accrual until a loss is determined to be probable and can be reasonably estimated. In the Company's opinion, based on its examination of these matters, its experience to date and discussions with counsel, the ultimate outcome of legal proceedings, net of liabilities accrued in the Company's balance sheet, is not expected to have a material adverse effect on the Company's financial position. However, the resolution of, or increase in accruals for, one or more of these matters in any reporting period may have a material adverse effect on the Company’s results of operations and cash flows for that period. On October 6, 2015, Professor Nitzan Bichacho, Dr. Ophir Fromovich, Dr. Ben-Zion Karmon and Dr. Yuval Yaacoby (collectively, “Claimants”) initiated arbitration against Nobel Biocare Services AG (“Nobel”) in the International Court of Arbitration of the International Chamber of Commerce in Zurich, Switzerland, seeking damages for alleged breaches by Nobel of a 2005 patent transfer and consultancy agreement between the parties and Nobel’s alleged underpayment of royalties related thereto. Claimants’ Request for Arbitration alleged damages of $30 million and Claimants have presented arguments that suggest that they are, in fact, seeking damages in excess of that amount. The Company has recognized a loss reserve for its best estimate in the range of probable damages related to this matter, which is included within the Company’s accrual for legal matters described above. |
Debt and Credit Facilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES The components of the Company’s debt were as follows ($ in millions):
Unamortized debt issuance costs and discount totaled $120 million as of July 3, 2020, which have been netted against their respective aggregate principal amounts of the related debt in the table above and are being amortized to interest expense over the term of the respective debt. Long-Term Indebtedness 2019 Credit Agreement On September 20, 2019, the Company entered into a credit agreement (the “Credit Agreement”) with a syndicate of banks under which Envista borrowed approximately $1.3 billion, consisting of the three-year $650 million Term Loan Facility and the three-year €600 million Euro Term Loan Facility (together with the Term Loan Facility, the “Term Loans”). The Credit Agreement also includes the five-year, $250 million Revolving Credit Facility (together with the Term Loans, the “Senior Credit Facilities”). Pursuant to the Separation Agreement, all of the net proceeds of the Term Loans were paid to Danaher as partial consideration for the Dental business Danaher transferred to Envista, as further discussed in Note 1. The Revolving Credit Facility includes an initial aggregate principal amount of $250 million with a $20 million sublimit for the issuance of standby letters of credit. The Company has the option to increase the amount available under the Revolving Credit Facility, subject to agreement by the lenders, by up to an additional $200 million in the aggregate. The Revolving Credit Facility can be used for working capital and other general corporate purposes. As of July 3, 2020, the Revolving Credit Facility has been fully drawn down. This amount is classified as current as of July 3, 2020 as the Company expects that it will be repaid within the next twelve months. The interest rates for borrowings under the Term Loan Facility, Euro Term Loan Facility and Revolving Credit Facility were 3.7%, 2.5% and 3.1%, respectively, for the three months ended July 3, 2020 and 3.4%, 1.8% and 3.0%, respectively, for the six months ended July 3, 2020. The Company has entered into interest rate swap derivative contracts for the Term Loan Facility, as further discussed in Note 8. On May 6, 2020, the Company entered into an amendment to its Credit Agreement (the “Amendment”) that, among other changes, waives the quarterly-tested leverage covenant and reduces the interest coverage ratio through and including the first quarter of 2021. In connection with this Amendment, the lenders obtained a first priority security interest in substantially all of the Company’s assets. The Amendment also imposes limitations on liens, indebtedness, asset sales, investments and acquisitions. In addition, the Company will be required to maintain a monthly-tested minimum liquidity covenant during the waiver period. The Amendment increases the interest and fees payable under the Credit Agreement for the duration of the period during which the waiver of the debt covenants remains in effect. Substantially all terms of the Credit Agreement revert back to the original terms as soon as the Company submits a quarterly compliance certificate with debt covenants at pre-Amendment levels. The Company incurred fees aggregating $3 million in connection with this Amendment, of which $2 million were deferred and will be amortized to interest expense over the term of the debt and the remaining amount was expensed. The Credit Agreement also contains customary events of default. Upon the occurrence and during the continuance of an event of default, the lenders may declare the outstanding advances and all other obligations under the Credit Agreement immediately due and payable. The Company was in compliance with the interest coverage ratio and other applicable covenants as of July 3, 2020. Convertible Senior Notes (the “Notes”) On May 21, 2020, the Company issued the Notes due on June 1, 2025, unless earlier repurchased, redeemed or converted. The aggregate principal amount, which includes the initial purchasers’ exercise in full of their option to purchase an additional $68 million principal amount of the Notes, was $518 million. The net proceeds from the issuance, after deducting purchasers’ discounts and estimated offering expenses, were $503 million. The Company used part of the net proceeds to pay for the capped call transactions (“Capped Calls”) as further described below. The Notes will accrue interest at a rate of 2.375% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020. The Notes have an initial conversion rate of 47.5862 shares of the Company’s common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $21.01 per share of the Company’s common stock and is subject to adjustment upon the occurrence of specified events. The Notes are governed by an indenture dated as of May 21, 2020 (the “Indenture”) between the Company and Wilmington Trust, National Association, as trustee. The Indenture does not contain any financial covenants or any restrictions on the payment of dividends, the incurrence of senior debt or other indebtedness or the issuance or repurchase of the Company’s securities by the Company. The Notes are the Company’s senior, unsecured obligations and are (i) equal in right of payment with our existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the Notes; (iii) effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries. Holders of the Notes may convert their Notes at any time on or after December 2, 2024 until the close of business on the second scheduled trading day preceding the maturity date. Holders of the Notes will also have the right to convert the Notes prior to December 2, 2024, but only upon the occurrence of specified events. Upon conversion, the Notes will be settled in cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. The Company’s current intent and policy is to settle all Notes conversions through combination settlement, satisfying the principal amount outstanding with cash and any Notes conversion value in excess of the principal amount in shares of the Company’s common stock. If a fundamental change occurs prior to the maturity date, holders of the Notes may require the Company to repurchase all or a portion of their Notes for cash at a repurchase price equal to 100% of the principal amount plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the maturity date, the Company would increase the conversion rate for a holder who elects to convert its Notes in connection with such an event in certain circumstances. As of July 3, 2020, none of the conditions permitting early conversion by holders of the Notes had been met, therefore, the Notes are classified as long-term. The Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after June 1, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any Note for redemption will constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components of $411 million and $107 million, respectively. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component is not re-measured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) will be amortized to interest expense over the term of the Notes. The Company allocated the total issuance costs incurred to the liability and equity components of the Notes based on their relative values. Issuance costs attributable to the liability component of $12 million were recorded as a reduction to the liability portion of the Notes and will be amortized as interest expense over the term of the Notes. The issuance costs of $3 million attributable to the equity component were netted with the equity component in stockholders’ equity. The Company recorded a net deferred tax liability of $20 million in connection with the issuance of the Notes, which was recorded to stockholders’ equity. The following table sets forth total interest expense recognized related to the Notes ($ in millions):
For the three and six months ended July 3, 2020, the debt discount and debt issuance costs were amortized using an annual effective interest rate of 7.3% to interest expense over the term of the Notes. As of July 3, 2020, the fair value of the Notes was $644 million. The fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on July 3, 2020. The Notes are considered as Level 2 of the fair value hierarchy. As of July 3, 2020, the if-converted value of the Notes exceeds the outstanding principal amount by $9 million. Capped Call Transactions In connection with the offering of the Notes, the Company entered into Capped Calls with certain counterparties. The Capped Calls each have an initial strike price of approximately $21.01 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $23.79 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, 2.9 million shares of the Company's common stock. The Capped Calls are generally intended to reduce or offset the potential dilution from shares of common stock issued upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. As the Capped Call transactions are considered indexed to the Company's own stock and are considered equity classified, they are recorded in equity and are not accounted for as derivatives. The cost of $21 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital.
|
Stock Transactions |
6 Months Ended |
---|---|
Jul. 03, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Transactions | STOCK TRANSACTIONS Capital Stock Under the Company’s amended and restated certificate of incorporation, as of September 20, 2019, the Company’s authorized capital stock consists of 500 million shares of common stock with a par value of $0.01 per share and 15 million shares of preferred stock with no par value per share. On September 17, 2019, the Company issued shares of the Company’s common stock to Danaher as partial consideration for the transfer of the Dental business by Danaher to the Company, which, together with the 100 shares of the Company’s common stock previously held by Danaher resulted in Danaher owning 127.9 million shares of the Company’s common stock. On September 20, 2019, the Company completed its IPO resulting in the issuance of an additional 30.8 million shares of its common stock. No preferred shares were issued or outstanding as of July 3, 2020. |
Accumulated Other Comprehensive Loss |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component are summarized below ($ in millions).
|
Revenue |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | REVENUE The following tables present the Company’s revenues disaggregated by geographical region for the three and six months ended July 3, 2020 and June 28, 2019 ($ in millions). Sales taxes and other usage-based taxes collected from customers are excluded from revenues. The Company has historically defined emerging markets as developing markets of the world, which prior to the COVID-19 pandemic, have experienced extended periods of accelerated growth in gross domestic product and infrastructure, which includes Eastern Europe, the Middle East, Africa, Latin America and Asia (with the exception of Japan and Australia). The Company defines developed markets as all markets of the world that are not emerging markets.
Sales by major product group ($ in millions):
Remaining Performance Obligations ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) requires disclosure of remaining performance obligations that represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include noncancelable purchase orders, extended warranty and service agreements and do not include revenue from contracts with customers with an original term of one year or less. As of July 3, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $18 million and the Company expects to recognize revenue on the majority of this amount over the next 12 months. Contract Liabilities The Company often receives cash payments from customers in advance of the Company’s performance resulting in contract liabilities. These contract liabilities are classified as either current or long-term in the Condensed Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue. As of July 3, 2020, and December 31, 2019, the contract liabilities were $47 million and $57 million, respectively, and are included within accrued expenses and other liabilities and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets. Revenue recognized during the six months ended July 3, 2020 and June 28, 2019 that was included in the contract liability balance on December 31, 2019 and December 31, 2018, was $32 million and $39 million, respectively. Significant Customers No individual customer accounted for more than 10% of sales in the three and six months ended July 3, 2020. Sales to the Company’s largest customer were 13% and 12% of sales in the three and six months ended June 28, 2019, respectively. Seasonality Based on historical experience, the Company generally has more sales in the second half of the calendar year than in the first half of the calendar year, with the first quarter typically having the lowest sales of the year. Based on historical customer buying patterns, the Company generally has more sales in the fourth quarter than in any other quarter of the year, driven in particular by capital spending in the Equipment & Consumables segment. As a result of this seasonality in sales, profitability in the Equipment & Consumables segment also tends to be higher in the second half of the year. There are no assurances that these historical trends will continue in the future.
|
Restructuring Activities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Activities | RESTRUCTURING ACTIVITIES The Company’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, take advantage of available capacity and resources, and ultimately achieve net cost reductions. These activities generally relate to the realignment of existing manufacturing capacity and closure of facilities and other exit or disposal activities, as it relates to executing the Company’s strategy, either in the normal course of business or pursuant to significant restructuring programs. As of the end of the second quarter, the Company was unable to reasonably estimate an obligation for any future employee severance and other benefits related to the Company’s restructuring activities. The Company initiated restructuring related activities during the six months ended July 3, 2020. The related liability, which is included in accrued liabilities in the Condensed Consolidated Balance Sheets, is summarized below ($ in millions):
During the three months ended July 3, 2020, the Company made the decision to exit a portion of its treatment unit business, which is part of the Equipment & Consumables segment, as part of its strategy to restructure its portfolio and improve its cost structure. In connection with the planned exit, which is expected to be substantially complete by the end of the third quarter, the Company recognized a non-cash loss of $19 million. The majority of this loss included $9 million related to the impairment of certain intangible assets, which is included in selling, general and administrative expenses and $9 million of inventory write-offs, which is included in cost of sales. As soon as the production activities are completed, the Company expects to sell the manufacturing facility related to this business. Restructuring related charges recorded for the three and six months ended July 3, 2020 and June 28, 2019, by segment were as follows ($ in millions):
The restructuring related charges incurred during the three and six months ended July 3, 2020 and June 28, 2019, are reflected in the following captions in the accompanying Condensed Consolidated and Combined Statements of Operations ($ in millions):
|
Income Taxes |
6 Months Ended |
---|---|
Jul. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Prior to the Split-Off, the Company’s operating results were included in Danaher’s various consolidated U.S. federal and certain state income tax returns, as well as certain non-U.S. returns. For periods prior to the Split-Off, the Company’s Condensed Consolidated and Combined Financial Statements reflect income tax expense and deferred tax balances as if the Company had filed tax returns on a standalone basis separate from Danaher. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if the Company was a separate taxpayer and a standalone enterprise for periods prior to the Split-Off. The Company’s effective tax rate of 23.5% and 20.3% for the three months ended July 3, 2020 and June 28, 2019, respectively, and effective tax rate of 26.4% and 18.7% for the six months ended July 3, 2020 and June 28, 2019, respectively, differ from the U.S. federal statutory rate of 21.0%, primarily due to the Company’s geographical mix of earnings as a result of the impact of COVID-19 in the three and six months ended July 3, 2020. On March 27, 2020, the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act is an emergency economic stimulus package in response to the COVID-19 outbreak which, among other things, contains numerous income tax provisions. Some of these tax provisions are expected to be effective retroactively for years ending before the date of enactment. The Company has not identified material impacts to the quarterly provision as of and for the three and six months ended July 3, 2020 and does not anticipate that the provisions of the CARES Act will impact income taxes in 2020. The Company will continue to evaluate the impact of the CARES Act as new clarifying guidance is issued throughout 2020.
|
(Loss) Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) Earnings Per Share | (LOSS) EARNINGS PER SHARE Basic (loss) earnings per share is calculated by dividing net (loss) income by the weighted average number of shares of common stock outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential shares outstanding during the period using the treasury stock method. Dilutive potential common shares include employee equity options, non-vested shares and similar instruments granted by the Company and the assumed conversion impact of the Notes. The Company’s current intent and policy is to settle all Notes conversions through a combination settlement by satisfying the principal amount outstanding with cash and any Notes conversion value in excess of the principal amount in shares of the Company’s common stock. As such, the Company uses the treasury stock method for the assumed conversion of the Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share. As the Company intends and has the ability to settle the principal amount of the Notes in cash upon conversion, the Notes will not have an impact on the Company's diluted earnings per share until the average share price of the Company’s common stock exceeds the conversion price of $21.01 per share. In connection with the offering of the Notes, the Company entered into Capped Calls (see further discussion in Note 13), which are intended to reduce or offset the potential dilution from shares of common stock issued upon conversion of the Notes. However, this impact is not included when calculating potentially dilutive shares since their effect is anti-dilutive. Until the average market price of the Company's common stock exceeds the cap price of $23.79 per share, exercise of the Capped Calls will mitigate dilution from the Notes. The Company’s issuance of shares of its common stock to Danaher as partial consideration for the transfer of the Dental business by Danaher to the Company on September 17, 2019, together with the 100 shares of the Company’s common stock previously held by Danaher, resulted in 127.9 million shares of the Company’s common stock being held by Danaher, which are being utilized for the calculation of both basic and diluted earnings per share for the three and six months ended June 28, 2019. In connection with the IPO, an additional 30.8 million shares were issued on September 20, 2019. For periods prior to the Separation, the Company’s stock-based compensation expense includes expense for Danaher equity awards granted to certain of the Company’s employees. As these equity awards related to Danaher common stock, rather than common stock of the Company, the calculation of diluted earnings per share does not include the potential dilutive impact of these equity awards for periods prior to the Split-Off. At the time of the Split-Off, the equity awards held by certain employees to purchase Danaher shares were converted into equity awards to purchase the Company’s shares and the converted equity awards are included in the Company’s calculation of diluted earnings per share in periods where the Company has net income. The table below presents the computation of basic and diluted (loss) earnings per share (in millions, except per share amounts):
Since the Company was in a net loss position for the three and six months ended July 3, 2020, no shares reserved for issuance upon exercise of stock options, vesting of restricted stock units or assumed conversion of the Notes were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive. The Notes did not have an impact on the Company’s diluted share count as the average stock price of the Company’s common stock did not exceed $21.01. The following table presents outstanding securities not included in the computation of diluted (loss) income per share, because their effect was anti-dilutive (in millions):
|
Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION The Company operates and reports its results in two separate business segments, the Specialty Products & Technologies and Equipment & Consumables segments. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. Operating profit represents total revenues less operating expenses, excluding nonoperating income (expense) and income taxes. Operating profit amounts in the Other segment consist of unallocated corporate costs and other costs not considered part of management’s evaluation of reportable segment operating performance. The identifiable assets by segment are those used in each segment’s operations. Inter-segment amounts are not significant and are eliminated to arrive at consolidated totals. The Company’s Specialty Products & Technologies products include implants, prosthetics, orthodontic brackets, aligners and lab products. The Company’s Equipment & Consumables products include traditional consumables such as bonding agents and cements, impression materials, infection prevention products and restorative products, while the Company’s equipment products include treatment units, instruments, digital imaging systems, software and other visualization and magnification systems. Segment related information is shown below ($ in millions):
|
Related-Party Transactions |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related-Party Transactions | RELATED-PARTY TRANSACTIONS In connection with the Separation, the Company entered into various agreements with Danaher, including but not limited to, a Separation Agreement, a Transition Services Agreement, a Tax Matters Agreement, an Employee Matters Agreement, an Intellectual Property Matters Agreement and a Danaher Business System (“DBS”) License Agreement, which set forth certain terms and conditions related to transactions which will continue between Danaher and the Company post-Separation. Separation Agreement The Separation Agreement governs the Separation and provides a framework for the relationship between the parties going forward. Transition Services Agreement The Transition Services Agreement sets forth the terms and conditions pursuant to which the Company and its subsidiaries and Danaher and its subsidiaries will provide to each other various services after the Separation. The services to be provided include information technology, facilities, certain accounting and other financial functions, and administrative services. The charges for the transition services generally are expected to allow the providing company to fully recover all out-of-pocket costs and expenses it actually incurs in connection with providing the service, plus, in some cases, the allocated indirect costs of providing the services, generally without profit. Tax Matters Agreement The Tax Matters Agreement governs the respective rights, responsibilities and obligations of both the Company and Danaher after the Separation with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and other matters regarding taxes. Employee Matters Agreement The Employee Matters Agreement sets forth, among other things, the allocation of assets, liabilities and responsibilities relating to employee compensation and benefit plans and programs and other related matters in connection with the Separation, including the treatment of outstanding equity and other incentive awards and certain retirement and welfare benefit obligations. Intellectual Property Matters Agreement The Intellectual Property Matters Agreement sets forth the terms and conditions pursuant to which Danaher and the Company have mutually granted certain personal, generally irrevocable, non-exclusive, worldwide, and royalty-free rights to use certain intellectual property. Both parties are able to sublicense their rights in connection with activities relating to their businesses, but not for independent use by third parties. DBS License Agreement The DBS License Agreement sets forth the terms and conditions pursuant to which Danaher has granted a non-exclusive, worldwide, non-transferable, perpetual license to us to use DBS solely in support of our businesses. The Company is able to sublicense such license solely to direct and indirect wholly-owned subsidiaries. In addition, both parties have licensed to each other improvements made by such party to DBS during the first two years of the term of the DBS license agreement. The Company has historically operated as part of Danaher and not as a separate, publicly-traded company. Accordingly, Danaher has allocated certain shared costs to the Company that are reflected as expenses in these Condensed Consolidated and Combined Financial Statements for the periods prior to Separation. Management considers the allocation methodologies used by Danaher to be reasonable and to appropriately reflect the related expenses attributable to the Company for purposes of the Condensed Consolidated and Combined Financial Statements; however, the expenses reflected in these financial statements may not be indicative of the actual expenses that would have been incurred during the periods presented if the Company had operated as a separate entity. In addition, the expenses reflected in the financial statements may not be indicative of expenses the Company will incur in the future. Following the Split-Off, Danaher no longer owns any of the Company’s outstanding common stock and is no longer a related party and the Company no longer considers transactions with Danaher as related party transactions. Corporate Expenses Certain corporate overhead and shared expenses incurred by Danaher and its subsidiaries have been allocated to the Company and are reflected in the Condensed Consolidated and Combined Statements of Operations. These amounts included, but were not limited to, items such as general management and executive oversight, costs to support Danaher information technology infrastructure, facilities, compliance, human resources and legal functions and financial management and transaction processing including public company reporting, consolidated tax filings and tax planning, Danaher benefit plan administration, risk management and consolidated treasury services, certain employee benefits and incentives and stock based compensation administration. These costs were allocated using methodologies that management believes are reasonable for the item being allocated. Allocation methodologies included the Company’s relative share of revenues, headcount or functional spend as a percentage of the total. Insurance Programs Administered by Former Parent In addition to the corporate allocations discussed above, the Company was allocated expenses related to certain insurance programs Danaher administered on behalf of the Company, including workers’ compensation, property, cargo, automobile, crime, fiduciary, product, general and directors’ and officers’ liability insurance. The insurance costs of these policies were allocated by Danaher to the Company using various methodologies related to the respective, underlying exposure base. For the self-insured component of the policies referenced above, Danaher allocated costs to the Company based on the Company’s incurred claims. Medical Insurance Programs Administered by Former Parent In addition to the corporate allocations noted above, the Company was allocated expenses related to the medical insurance programs Danaher administered on behalf of the Company. These amounts were allocated using actual medical claims incurred during the period for the associated employees attributable to the Company. In connection with the Separation, the Company established independent medical insurance programs similar to those previously provided by Danaher. Deferred Compensation Program Administered by Former Parent Certain of the Company’s management employees participated in Danaher’s nonqualified deferred compensation programs that permit participants to defer a portion of their compensation, on a pretax basis prior to the Separation. All amounts deferred under this plan are unfunded, unsecured obligations of Danaher and subject to reimbursement by the Company. In connection with the Separation, the Company established a similar independent, nonqualified deferred compensation program. After the Separation there were no related-party expenses allocated to the Company. The amounts of related-party expenses allocated to the Company from Danaher for the three and six months ended June 28, 2019, were as follows ($ in millions):
Revenue and other transactions entered into in the ordinary course of business Certain of the Company’s revenue arrangements relate to contracts entered into in the ordinary course of business with Danaher and Danaher affiliates. The amount of related-party revenue was not significant for the three and six months ended June 28, 2019.
|
Acquisitions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values Of The Assets Acquired And Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date ($ in millions):
|
Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||
Credit Loss [Abstract] | |||||||||||||||||||||||||||||
Allowance for Credit Losses | The rollforward of the allowance for credit losses is summarized as follows ($ in millions):
|
Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | The classes of inventory are summarized as follows ($ in millions):
|
Property, Plant and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | The classes of property, plant and equipment are summarized as follows ($ in millions):
|
Goodwill (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollforward and Carrying Value Of Goodwill | The following is a rollforward of the Company’s goodwill ($ in millions):
|
Accrued Expenses And Other Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses and other [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Components of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities were as follows ($ in millions):
|
Hedging Transactions And Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) | The following table summarizes the notional values as of July 3, 2020 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive loss (“OCI”) for the three and six months ended July 3, 2020 ($ in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table summarizes the notional values as of July 3, 2020 and pretax impact of changes in the fair values of instruments designated as net investment hedges and cash flow hedges in accumulated other comprehensive loss (“OCI”) for the three and six months ended July 3, 2020 ($ in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The Company’s derivative instruments, as well as its non-derivative debt instruments designated and qualifying as net investment hedges, were classified in the Company’s Condensed Consolidated Balance Sheets as follows ($ in millions):
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets And Liabilities At Carrying and Fair Value | The carrying amounts and fair values of the Company’s financial instruments were as follows ($ in millions):
A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows ($ in millions):
|
Pension And Other Benefit Plans (Tables) - Defined benefit pension plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following sets forth the components of the Company’s net periodic benefit costs of the defined benefit pension plans ($ in millions): Components of net periodic pension cost:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The net periodic benefit costs are reflected in the following captions in the accompanying Condensed Consolidated and Combined Statements of Operations ($ in millions):
|
Commitments And Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Warranty Accrual | The following is a rollforward of the Company’s accrued warranty liability ($ in millions):
|
Debt and Credit Facilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Debt | The components of the Company’s debt were as follows ($ in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Note Interest Expense | The following table sets forth total interest expense recognized related to the Notes ($ in millions):
|
Accumulated Other Comprehensive Loss (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss by component are summarized below ($ in millions).
|
Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue by geographical region and revenue type | The following tables present the Company’s revenues disaggregated by geographical region for the three and six months ended July 3, 2020 and June 28, 2019 ($ in millions). Sales taxes and other usage-based taxes collected from customers are excluded from revenues. The Company has historically defined emerging markets as developing markets of the world, which prior to the COVID-19 pandemic, have experienced extended periods of accelerated growth in gross domestic product and infrastructure, which includes Eastern Europe, the Middle East, Africa, Latin America and Asia (with the exception of Japan and Australia). The Company defines developed markets as all markets of the world that are not emerging markets.
Sales by major product group ($ in millions):
|
Restructuring Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The Company initiated restructuring related activities during the six months ended July 3, 2020. The related liability, which is included in accrued liabilities in the Condensed Consolidated Balance Sheets, is summarized below ($ in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | Restructuring related charges recorded for the three and six months ended July 3, 2020 and June 28, 2019, by segment were as follows ($ in millions):
The restructuring related charges incurred during the three and six months ended July 3, 2020 and June 28, 2019, are reflected in the following captions in the accompanying Condensed Consolidated and Combined Statements of Operations ($ in millions):
|
(Loss) Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings per Share | The table below presents the computation of basic and diluted (loss) earnings per share (in millions, except per share amounts):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Not Included in the Computation of Diluted (Loss) Income per Share | The following table presents outstanding securities not included in the computation of diluted (loss) income per share, because their effect was anti-dilutive (in millions):
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Results | Segment related information is shown below ($ in millions):
|
Related-Party Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 03, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Expenses | The amounts of related-party expenses allocated to the Company from Danaher for the three and six months ended June 28, 2019, were as follows ($ in millions):
|
Business and Basis of Presentation (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions |
6 Months Ended | |
---|---|---|
Sep. 20, 2019
USD ($)
$ / shares
shares
|
Jul. 03, 2020
Segment
|
|
Business Acquisition [Line Items] | ||
Issuance of common stock (in shares) | 30.8 | |
Payments to acquire business | $ | $ 2,000 | |
Common stock, shares issued (in shares) | 127.9 | |
Number of business segments (in segments) | Segment | 2 | |
IPO | ||
Business Acquisition [Line Items] | ||
Issuance of common stock (in shares) | 30.8 | |
Percentage of outstanding share issues in sale of stock | 19.40% | |
Price per share (in dollars per share) | $ / shares | $ 22.00 | |
Proceeds from issuance IPO | $ | $ 643 |
Acquisitions (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jan. 21, 2020 |
Jul. 03, 2020 |
Jul. 03, 2020 |
|
Business Acquisition [Line Items] | |||
Acquisitions | $ 24.4 | ||
Matricel | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 44.0 | ||
Acquisitions | $ (0.8) | ||
Weighted average amortization period | 10 years |
Acquisitions (Fair Values Of The Assets Acquired And Liabilities) (Details) - USD ($) $ in Millions |
Jul. 03, 2020 |
Jan. 21, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 3,333.8 | $ 3,306.0 | |
Matricel | |||
Business Acquisition [Line Items] | |||
Cash | $ 2.9 | ||
Trade accounts receivable | 1.0 | ||
Inventories | 1.9 | ||
Prepaid expenses and other current assets | 0.2 | ||
Property, plant and equipment | 0.5 | ||
Goodwill | 24.4 | ||
Other intangible assets | 22.3 | ||
Total assets acquired | 53.2 | ||
Trade accounts payable | (0.1) | ||
Accrued expenses and other liabilities | (9.4) | ||
Total liabilities assumed | (9.5) | ||
Total net assets acquired | $ 43.7 |
Credit Losses (Details) |
6 Months Ended |
---|---|
Jul. 03, 2020
segment
| |
Credit Loss [Abstract] | |
Number of portfolio segments (in segments) | 1 |
Credit Losses (Allowance for Credit Losses) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at December 31, 2019 | $ 22.8 | |
Foreign currency translation | (0.7) | |
Provision for credit losses | 11.6 | $ 3.1 |
Write-offs charged against the allowance | (3.1) | |
Balance at July 3, 2020 | $ 30.6 |
Inventories (Details) - USD ($) $ in Millions |
Jul. 03, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 230.3 | $ 223.5 |
Work in process | 38.3 | 36.5 |
Raw materials | 90.3 | 89.9 |
Inventories, gross | 358.9 | 349.9 |
Less: reserve for excess and obsolescence | (78.1) | (72.0) |
Inventories, net | $ 280.8 | $ 277.9 |
Property, Plant and Equipment (Details) - USD ($) $ in Millions |
Jul. 03, 2020 |
Dec. 31, 2019 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 699.5 | $ 692.9 |
Less: accumulated depreciation | (405.2) | (402.6) |
Property, plant and equipment, net | 294.3 | 290.3 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 23.8 | 23.7 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 173.1 | 166.9 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 502.6 | $ 502.3 |
Goodwill (Rollforward of Goodwill) (Details) $ in Millions |
6 Months Ended |
---|---|
Jul. 03, 2020
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 3,306.0 |
Acquisitions | 24.4 |
Foreign currency translation and other | 3.4 |
Ending balance | 3,333.8 |
Specialty Products & Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 2,008.1 |
Acquisitions | 24.4 |
Foreign currency translation and other | 3.0 |
Ending balance | 2,035.5 |
Equipment & Consumables | |
Goodwill [Roll Forward] | |
Beginning balance | 1,297.9 |
Acquisitions | 0.0 |
Foreign currency translation and other | 0.4 |
Ending balance | $ 1,298.3 |
Accrued Expenses And Other Liabilities - (Details) - USD ($) $ in Millions |
Jul. 03, 2020 |
Dec. 31, 2019 |
---|---|---|
Current | ||
Compensation and benefits | $ 111.8 | $ 151.2 |
Employee severance and other benefits | 37.3 | 5.6 |
Pension benefits | 8.5 | 8.5 |
Income and other taxes | 12.5 | 39.3 |
Contract liabilities | 43.1 | 52.6 |
Sales and product allowances | 50.9 | 68.8 |
Loss contingencies | 62.7 | 57.5 |
Other | 92.6 | 87.1 |
Total | 419.4 | 470.6 |
Noncurrent | ||
Compensation and benefits | 11.7 | 8.9 |
Employee severance and other benefits | 0.5 | 0.0 |
Pension benefits | 89.9 | 89.4 |
Income and other taxes | 283.2 | 254.0 |
Contract liabilities | 3.9 | 4.4 |
Sales and product allowances | 0.8 | 0.7 |
Loss contingencies | 29.0 | 29.1 |
Other | 21.9 | 12.8 |
Total | $ 440.9 | $ 399.3 |
Hedging Transactions And Derivative Financial Instruments (Narrative) (Details) |
Jul. 03, 2020
USD ($)
|
Jul. 03, 2020
EUR (€)
|
Dec. 31, 2019
USD ($)
|
Sep. 20, 2019
USD ($)
|
Sep. 20, 2019
EUR (€)
|
---|---|---|---|---|---|
Derivative [Line Items] | |||||
Long-term debt | $ 1,975,700,000 | $ 1,324,900,000 | |||
US term loan due 2022 | |||||
Derivative [Line Items] | |||||
Long-term debt | 647,700,000 | 648,700,000 | $ 650,000,000 | ||
Term loan | 650,000,000 | $ 650,000,000 | |||
Euro term loan due 2022 | |||||
Derivative [Line Items] | |||||
Long-term debt | $ 673,200,000 | $ 672,000,000.0 | |||
Term loan | € | € 600,000,000 | € 600,000,000 |
Hedging Transactions And Derivative Financial Instruments (Summary of Notional Values and Pretax Impact in Fair Values of Net Investment Hedges) (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jul. 03, 2020
USD ($)
|
Jul. 03, 2020
USD ($)
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 1,974.9 | $ 1,974.9 |
(Loss) Gain Recognized in OCI | (53.5) | (4.0) |
Net investment hedging | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 650.0 | 650.0 |
(Loss) Gain Recognized in OCI | 0.0 | (11.7) |
Net investment hedging | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 650.0 | 650.0 |
(Loss) Gain Recognized in OCI | (27.3) | 9.7 |
Net investment hedging | Foreign currency denominated debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 674.9 | 674.9 |
(Loss) Gain Recognized in OCI | $ (26.2) | $ (2.0) |
Hedging Transactions And Derivative Financial Instruments (Derivative and Nonderivative Debt Instruments) (Details) - USD ($) $ in Millions |
Jul. 03, 2020 |
Dec. 31, 2019 |
---|---|---|
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets: | $ 0.0 | $ 0.1 |
Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets: | 3.3 | 0.0 |
Accrued expense and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities: | 3.2 | 8.9 |
Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities: | 10.9 | 0.0 |
Long-term debt | ||
Derivatives, Fair Value [Line Items] | ||
Non-derivative hedging instruments: | $ 674.9 | $ 672.9 |
Pension And Other Benefit Plans - (Components of Net Periodic Benefit Cost of Defined Benefit Pension Pans) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2020 |
Jun. 28, 2019 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ (2.6) | $ (2.3) | $ (5.2) | $ (4.6) |
Net periodic pension cost | (2.5) | (1.0) | (5.0) | (3.2) |
Defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | (2.6) | (2.3) | (5.2) | (4.6) |
Interest cost | (0.4) | (0.6) | (0.8) | (1.1) |
Expected return on plan assets | 0.9 | 0.8 | 1.8 | 1.6 |
Amortization of initial net obligation | (0.1) | 0.0 | (0.2) | (0.1) |
Amortization of prior service credit | 0.1 | 0.0 | 0.2 | 0.0 |
Amortization of actuarial loss | (0.4) | (0.1) | (0.8) | (0.2) |
Curtailment and settlement gains recognized | 0.0 | 1.2 | 0.0 | 1.2 |
Net periodic pension cost | $ (2.5) | $ (1.0) | $ (5.0) | $ (3.2) |
Pension And Other Benefit Plans - (Components of Net Periodic Benefit Cost Reflected in the Consolidated Condensed Statement of Earnings) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2020 |
Jun. 28, 2019 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Retirement Benefits [Abstract] | ||||
Service cost: | $ (2.6) | $ (2.3) | $ (5.2) | $ (4.6) |
Other net periodic pension costs: | ||||
Nonoperating income (expense) | 0.1 | 1.3 | 0.2 | 1.4 |
Net periodic pension cost | $ (2.5) | $ (1.0) | $ (5.0) | $ (3.2) |
Commitments And Contingencies (Narrative) (Details) |
6 Months Ended |
---|---|
Jul. 03, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product warranty period | 90 days |
Commitments And Contingencies (Warranty Accrual) (Details) $ in Millions |
6 Months Ended |
---|---|
Jul. 03, 2020
USD ($)
| |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |
Balance at December 31, 2019 | $ 9.6 |
Accruals for warranties issued during the year | 7.4 |
Payments made | (7.3) |
Effect of foreign currency translation | (0.1) |
Balance at July 3, 2020 | $ 9.6 |
Litigation And Contingencies (Narrative) (Details) - USD ($) $ in Millions |
Jul. 03, 2020 |
Dec. 31, 2019 |
Oct. 06, 2015 |
---|---|---|---|
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for legal matters | $ 92 | $ 87 | |
Loss contingency, estimate of possible loss | $ 30 |
Debt and Credit Facilities (Interest Expense) (Details) - Convertible Debt - 2.375% Convertible Senior Notes $ in Millions |
6 Months Ended |
---|---|
Jul. 03, 2020
USD ($)
| |
Debt Instrument [Line Items] | |
Contractual interest expense | $ 1.4 |
Amortization of debt issuance costs | 0.2 |
Amortization of debt discount | 2.0 |
Total interest expense | $ 3.6 |
Revenue (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2020 |
Jul. 03, 2020 |
Jun. 28, 2019 |
Dec. 31, 2019 |
|
Concentration Risk [Line Items] | ||||
Contract liability | $ 47 | $ 47 | $ 57 | |
Revenue recognized | $ 32 | $ 39 | ||
Customer Concentration Risk | Revenue Benchmark | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 13.00% | 12.00% |
Revenue Remaining Performance Obligation (Details) $ in Millions |
Jul. 03, 2020
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 18 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 12 months |
Restructuring Activities (Schedule Of Restructuring And Related Costs) (Details) $ in Millions |
6 Months Ended |
---|---|
Jul. 03, 2020
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of year | $ 5.6 |
Costs incurred | 52.9 |
Paid/settled | (20.7) |
Balance at end of year | 37.8 |
Employee Severance and Related | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of year | 5.6 |
Costs incurred | 45.6 |
Paid/settled | (15.5) |
Balance at end of year | 35.7 |
Facility Exit and Related | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of year | 0.0 |
Costs incurred | 7.3 |
Paid/settled | (5.2) |
Balance at end of year | $ 2.1 |
Restructuring Activities (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jul. 03, 2020 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Restructuring Cost and Reserve [Line Items] | |||
Inventory write-off | $ 9.0 | $ 0.0 | |
Portion of Treatment Unit Business | Disposal by abandonment | |||
Restructuring Cost and Reserve [Line Items] | |||
Non-cash loss on disposal of partial business unit | $ 19.0 | ||
Impairment of intangible assets | 9.0 | ||
Inventory write-off | $ 9.0 |
Restructuring Activities (Schedule Of Restructuring And Other Related Charges By Segment) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2020 |
Jun. 28, 2019 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Costs incurred | $ 59.9 | $ 4.8 | $ 72.2 | $ 6.8 |
Specialty Products & Technologies | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs incurred | 15.7 | 3.5 | 16.5 | 3.2 |
Equipment & Consumables | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs incurred | 41.2 | 1.3 | 52.0 | 3.6 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs incurred | $ 3.0 | $ 0.0 | $ 3.7 | $ 0.0 |
Restructuring Activities (Schedule Of Restructuring Reserve By Type Of Cost) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2020 |
Jun. 28, 2019 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Costs incurred | $ 59.9 | $ 4.8 | $ 72.2 | $ 6.8 |
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs incurred | 23.9 | 0.9 | 26.7 | 1.8 |
Selling, general and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Costs incurred | $ 36.0 | $ 3.9 | $ 45.5 | $ 5.0 |
Income Taxes - (Narrative) (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2020 |
Jun. 28, 2019 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 23.50% | 20.30% | 26.40% | 18.70% |
(Loss) Earnings Per Share (Narrative) (Details) - $ / shares |
Sep. 20, 2019 |
Sep. 17, 2019 |
Jul. 03, 2020 |
May 21, 2020 |
---|---|---|---|---|
Share Information [Line Items] | ||||
Shares of common stock previously held by Danaher (in shares) | 100 | |||
Issuance of common stock (in shares) | 30,800,000 | |||
Common Stock | ||||
Share Information [Line Items] | ||||
Envista stock issued as consideration to Danaher as part of separation agreement (in shares) | 127,900,000 | |||
2.375% Convertible Senior Notes | Convertible Debt | ||||
Share Information [Line Items] | ||||
Conversion price (in USD per share) | $ 23.79 | $ 21.01 |
(Loss) Earnings Per Share (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2020 |
Jun. 28, 2019 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Numerator: | ||||
Net (loss) income | $ (93.5) | $ 61.5 | $ (110.7) | $ 99.4 |
Denominator: | ||||
Weighted-average common shares outstanding used in basic and diluted (loss) earnings per share (in shares) | 159.5 | 127.9 | 159.3 | 127.9 |
(Loss) earnings per share: | ||||
Basic and diluted (in USD per share) | $ (0.59) | $ 0.48 | $ (0.69) | $ 0.78 |
(Loss) Earnings Per Share (Securities Not Included in the Computation of Diluted Loss Income per Share) (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2020 |
Jun. 28, 2019 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Stock-based awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted (loss) income per share (shares) | 8.4 | 0.0 | 7.1 | 0.0 |
Related-Party Transactions (Related Party Expenses) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 28, 2019 |
Jul. 03, 2020 |
Jun. 28, 2019 |
|
Related Party Transaction [Line Items] | |||
License agreement improvement period | 2 years | ||
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ 22.0 | $ 43.0 | |
Affiliated Entity | Allocated corporate expenses | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 8.4 | 16.0 | |
Affiliated Entity | Insurance programs expenses | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 1.0 | 1.9 | |
Affiliated Entity | Medical insurance programs expenses | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 12.3 | 24.5 | |
Affiliated Entity | Deferred compensation program expenses | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ 0.3 | $ 0.6 |
LAK1-\@ %8-3H-3)KC: ?PX@.![.O%:0.CL<0"A
MJ)VJ@F5G D#F,_RXFAOQ&B@'6TRW\5D^)8 9MD(G;\N\6\$F!W(*F!R,/*SK
M80[9UY?+5$D$Z)@0(4.?*^N*U)N&5/P>#U+AK,JB.4:4ZX6=#H)![+7)O*2>
MB:381@1LQ7J(WJS%:5T72_LL\!+A4)>)'")KT#+B"1^M=HMBQ0O6UJ,Y;-FX
M)FP5'37F$>_7B/>4%'](/:ZV:_BPHQ<$8604@$@RH-:)O2" SBOK"":1XS>\
M*6!X#6Z(6\, CO=T44H:Y$_5( %=C-2\70K\N7;%.@:S4UL9]K,- <70 J?=85!_Z\OT6
M*/5=/DBH%JOGTV>\?+YX 2 E*I$_!C=M0/S
MO,S ]G!VV?J$:R/#5 5S*A*^'3C'VB-3&A,'&E4ZK=%,\\5W5]2ILLDOV-1L
MF=G_E(X8!3_4$7J=:N071$0Q^)UB1D?G^9@M'>@J8S@8K++@>
MO;*KU5.6.$,X DI7%6MZ:WDP BB^#-)NLJ.P#\L(;IRJ<"B8H8X@ADB&U '7HJDHPZ,-&0;G7]U**4!?N_;[
M*OIC;;#FL+(=0O& SSOR<;05.AC5\29/;*FUN ,6E@V*1Z>Z0W$/+QMX:T:3
M05."6 M?1+7:\,9N#BOH'C*7-!I >(),K>Z#U;/V26E;FR)Y%XZCO:BR32!
M1< ,J:/8'6AP@\A#&/IMRT!7*&\C\:)RCE(G ,Z2/$UZ+C>4!KJ,RLP9",U#
M(N,BN/O)'XM7S4V*"M_C;GKBVE"%,+G0P).]<&Y-#B/7QP"0LD8UPK4,N+7O
MH:+/C-P[ON%%M$BS*Q!F@,+IC9>)%:%G.'H0&\BZ5L#0H5IWL" &=,C_0W3A,F?#^TX%/527^Q#$\')$X
M.;OF\8?F<- +[D!-\PR]1:
M6@,SS)!OV%S@%9Q,,OR<*2& ZG/+=/[K3/R;.OZ-CW]S(OZ("1^(69B0@G*.
M&I)VD[TJN15;ZME< ]@,XKC5[86;!@VWM8;;LQK(#ETF2=6L-BH[WI$*,G"+ENQ4$<52J7)F=!.D,CD5#
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M;YAH*(]W \
(XCOT,S.B]H?1"EP)^G,I7K#Z4QUG>"L\?MP_OZ]7K
MHO^=#_V&^*2+-]4%$T]*;F?:ILRFHXN/=Q_"K_'%F[ 9"9>?XS08U#OYB&D@
MO+L0].YBW]/3)7SS'NS3EME1B7FSCR[/\ 4V_8=Q@O0)V9F6F$,)0=S"+0
M9*;_:F1=_8+Z;+;%WH_GW)@ ,MS<<\I#Q7%VO;J8W
M_/,9?GK)3%.5CXL'KI;7JQ?7L[\BY'LB_^^0= Z6>Y+.IL]/2'I]LYPN\/\"
M_'HIW'1R]RE2V3VRZ%
M!VFYH,.G#IN-\Q70OJ0!&TD>..(*K-N]UR_ZLU^>.I+G#'N!;E[03D&Z!!TV
MGK37*KCIH+G4NJ]9S6;H!7VP"T=RS@)H/Z.>_,8SV81+P@G4YCVD(=1 LLB0N-$))-C
M/D+/G 0&<"? W];).)FQ(?$TP5.@'A+._R\B7*%B_8\TB((I$R"*)AR-) YA
MZ!VDPB >S<0BP$^X2!"MAX"*9P34'.NF$_S<@RD, \ 1!KPL)&A:H)+)C.U(
M)A'#O @6N#_BX$]S(0Y"SX%XRB&8QF3?70_!@ZD(DYA!B$,"Y2$G$Y(#(;1R
M/@$:]]V<4;2)4S.H#4>3SLWI@GB&ZXSP >^&\8P ]ZT#K:J0_T89;DLD*F>]
MO=MH7AY+DL>I< C;(Z_Z' ,I)A-F;[*(&NAB#M)B0CCM^1D&Y&D4+K ZFDT1
MP"2D?.^R8.J#ZMG?!G?O_2=% S,A^%%9'JW18<2'9:[1PLEG<7[U!8$=D9')
MBV Q%$?G&7>^:4#W3OO^$R4PO9+@=M0J/<_&GHX0D8&8YF
MW^!LF+_K-I8&?!'98,SB0T^9Q\GN$>+JRW=TJ>O-W[2?55JUR97IIK^FJRSG
M6'G/6O\U+!E
)L_G3,^%UQ'C<<8_WQ_!F[)<;S6&B>L,4"
M2CQA9Z?X=^VY57Y)GD]8DV]=PXCB+E' #* ,X=Y])Q!NMG9]^WR4?;V/0K1R
M/V(PS-$X_TU_^C3]3N+"_SQ@7.Y_9/$1#H;#, ]4V'H\_^GI@;^IC&^LZMV/
M!9;*@M&XET09A:8%>%XI-+GPA@Y(OQYY_3]02P,$% @ ,IC^4&=_B!P"
M P C08 !D !X;"]W;W)K
2T0U!J.TKZ5YN/0CP5")I@Q:!QZU:%7'3IVHIC&MOCX3\R!&5@K055IX/0$
MN*3G)015BNE-@+*]@S;9<(T9EBO4D/;=27\,MP[8?;PDRA=T\ 9.($G#BV8Z
MAT7-1<[EQD#_/ W[T!^-PC'
:MQ?0\IA)]Z7!;+@I]%6_
MQJPZ6S9V<@2?:E-^E]L50]P[[IWL8D+0N WDJ)?^SF.(C]0,RHM!/5M?JZ;E
M;>)9O+R3?6::$!D0N"#5L'=$_R==WG/*#ZM6_FXQ5Y9N*GZ8T=40M1.@]852
M=O/A'-27S'B@S\F0@EU
M,B9ZKJH[:5&CL7"(GX!$=YVK? SO?IJRA+TG>Z![LG]]0VVO&F-TD9.M'&8F
M2/+8PSHA&;E>C.D'K+!;$=,T.8SJ74T:B[5PR@(W!NT/=#&=%+/4MX]V-&KY
MV;:Q29),21HV87E!+1XTFU(S"V"IZ^5Q; M"RX>?P"3)IV'ZO4]-].PCWJ'>
M^*?*0*6VT@[?\Y/W]!I>#X_ ?^'#4_J9ZXV0!EI<4VH
OB.^QZA=Z^R'CDNM&/_7CCX,-MZT
M)QP>%?>F-^'HTW!'.R1Q4$*9\XX.W>)XT]EP=6N[+S@GYJRJJGO3D7#CJ( W
M'0HW*[6;L_:B=-C.\D.<;L[;_;";.VVXV:KOTMYG%N[L;[]TZ[!7O@
-G)=JI[UDD-H]?U&_*P9O!3(BB(\'_8U,]O^Q<=,"4SLB2Z^]B_1>M
M!I04>JG@JOP+UE5LU 'I4FF15NWZ#=Y\C:9*=%T+/G?
M;&:6PT:O 69T3C)N'N7Z#UHDU';Q$LEU_A>L"]NX 9),&YD6SA9!RL3FE[P4
M&U%Q@*T]#JAP0'4=<.&0[URT09:G-2&&C 9*KH%RUC::N\CW)O>VV3#AROAD
ME'W+K)\9W1"FP'?",PKN*=&9HK9&1H,+<%9Y)>?@A@DB$D8XN!7:J"PW^PK.
M)M00QNW5!?CV- %G7[Z"+X )<,\XMW72@\A8F&ZQ*"D@76\@H3V0_LQX$\3X
M'* 8Q3O
*3K7W#U0)["BVC"B_]@
M7=G:/1#E7-"T