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Discontinued Operations
 9 Months Ended
Oct. 01, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations DISCONTINUED OPERATIONS
On September 7, 2021, the Company entered into a master sale and purchase agreement (the "Purchase Agreement") with planmeca Verwaltungs GmbH, Germany ("Planmeca"), and Planmeca Oy, a privately-held Finnish company, as guarantor, pursuant to which the Company will sell to Planmeca its KaVo Treatment Unit and Instrument Business for total consideration of up to $455 million, which includes a potential earn-out payment of up to $30 million, subject to certain adjustments as provided in the Purchase Agreement. The Purchase Agreement provides that the Company will sell the KaVo Treatment Unit and Instrument Business through the sale of certain assets, the transfer of the equity of certain of its subsidiaries, and the assumption by Planmeca of certain liabilities and agreements, in each case used in or related to the KaVo Treatment Unit and Instrument Business (the "Divestiture"). The transaction is expected to close at the end of 2021.

The Divestiture was part of the Company’s strategy to structurally improve its long-term margins and represents a strategic shift with a major effect on the Company’s operations and financial results as described in Accounting Standards Codification—Discontinued Operations ("ASC 205-20"). The pending sale meets the criteria to be accounted for as a discontinued operation. Accordingly, the Company has applied discontinued operations treatment for the Divestiture as required by ASC 205-20. In accordance with ASC 205-20, the Company reclassified the Divestiture to assets and liabilities held for sale on its Condensed Consolidated Balance Sheets as of October 1, 2021 and December 31, 2020 and reclassified the financial results of the Divestiture in its Condensed Consolidated Statements of Operations for all periods presented. The Company’s Condensed Consolidated Statements of Cash Flows for the three and nine months ended October 1, 2021 and October 2, 2020 include the financial results of the KaVo Treatment Unit and Instrument Business.
The carrying amounts of the assets and liabilities of the Divestiture have been reclassified from their historical balance sheet presentation to current and noncurrent assets and current and noncurrent liabilities held for sale as follows:
As of
October 1, 2021December 31, 2020
ASSETS
Current assets:
Trade accounts receivable, less allowance for credit losses of $4.4 and $6.6, respectively
$57.4 $59.3 
Inventories, net53.5 50.9 
Prepaid expenses and other current assets6.7 3.7 
Property, plant and equipment, net27.5 — 
Operating lease right-of-use assets2.8 — 
Other assets8.2 — 
Goodwill212.0 — 
Other intangible assets, net99.9 — 
Current assets held for sale$468.0 $113.9 
Property, plant and equipment, net$— $28.4 
Operating lease right-of-use assets— 2.6 
Other long-term assets— 8.2 
Goodwill— 223.3 
Other intangible assets, net— 106.5 
Noncurrent assets held for sale$— $369.0 
LIABILITIES AND EQUITY
Current liabilities:
Trade accounts payable$20.4 $32.6 
Accrued expenses and other liabilities53.5 62.5 
Operating lease liabilities2.7 1.4 
Other liabilities60.5 — 
Current liabilities held for sale$137.1 $96.5 
Operating lease liabilities$— $1.2 
Other long-term liabilities— 61.8 
Noncurrent liabilities held for sale$— $63.0 
The operating results of the Divestiture are reflected in the Condensed Consolidated Statements of Operations within income (loss) from discontinued operations, net of tax as follows:

 Three Months EndedNine Months Ended
 October 1, 2021October 2, 2020October 1, 2021October 2, 2020
Sales$102.5 $93.3 302.0 $236.8 
Cost of sales57.2 61.1 174.4 182.1 
Gross profit45.3 32.2 127.6 54.7 
Operating expenses:
Selling, general and administrative25.2 22.0 70.4 78.1 
Research and development3.8 2.4 12.5 10.1 
Operating profit (loss)16.3 7.8 44.7 (33.5)
Income tax expense (benefit)$3.6 $(4.2)$11.0 $(7.0)
Income (loss) from discontinued operations$12.7 $12.0 $33.7 $(26.5)

Significant non-cash operating items and capital expenditures for the Divestiture are reflected in the cash flows from operations as follows:

Nine Months Ended
October 1, 2021October 2, 2020
Cash flows from operating activities
Non-cash restructuring charges$— $9.6 
Impairment charges$— $10.3 
Depreciation and amortization1
$5.6 $9.0 
Cash flows from investing activities:
Capital expenditures$4.2 $4.5 
1 Depreciation and amortization are no longer recognized once the business is classified as held for sale.