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Discontinued Operations
 12 Months Ended
Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations DISCONTINUED OPERATIONS
On December 31, 2021, the Company completed the sale of substantially all of KaVo Treatment Units and Instruments Business (the “Divestiture”) to planmeca Verwaltungs Gmbh, Germany (“Planmeca”), pursuant to the master sale and purchase agreement (the “Purchase Agreement”) among the Company, Planmeca, and Planmeca Oy, as guarantor. In accordance with the terms of the Purchase Agreement, the Company received cash consideration of $317.3 million upon closing, which remains subject to certain adjustments. The Company expects to receive an earnout payment of $30 million in the first quarter of 2022, plus an estimated $40.9 million in adjustments under the Purchase Agreement in the second quarter of 2022. A gain of $11.7 million, net of taxes has been recorded and included in income from discontinued operations in the Consolidated and Combined Statements of Operations.

On December 30, 2021, the Company entered into an amendment to the Purchase Agreement (the "Amendment"), providing that the transfer of net assets in Russia, China and Brazil (the "Relevant Jurisdictions") will be deferred until the purchaser has formed entities for such transfer of assets in each such Relevant Jurisdiction and the applicable asset transfer agreement can be executed and consummated (each such asset transfer, a "Deferred Local Closing"). Except for the implementation of the Deferred Local Closings and related matters regarding the assets in the Relevant Jurisdictions, the provisions, terms and conditions of the Purchase Agreement were not materially amended by the Amendment. The Amendment did not alter the preliminary purchase price that Planmeca paid to the Company upon the closing of the Divestiture. The Company recognized a liability of $10.8 million for the proceeds related to the Relevant Jurisdictions. The Company will recognize the applicable gain or loss at the time of each Relevant Jurisdictions applicable closing.

In conjunction with the Divestiture, the Company entered into a customary transition services agreement, which requires support transition services to Planmeca throughout the applicable transition period.

For the year ended December 31, 2021 the Divestiture met the criteria to be classified as held for sale and to be presented as a discontinued operation. Accordingly, the Company reclassified the results of operations and financial position of the Divestiture to discontinued operations in its accompanying Consolidated and Combined Statements of Operations and consolidated balance sheets for all periods presented. The Company’s consolidated and combined statements of cash flows for all periods presented include the financial results of the KaVo Treatment Unit and Instruments 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 ($ in millions):
As of
December 31, 2021December 31, 2020
ASSETS
Current assets:
Trade accounts receivable, less allowance for credit losses of $5.8 million
$— $53.3 
Inventories, net— 42.1 
Prepaid expenses and other current assets— 3.7 
Assets for relevant jurisdictions12.2 14.8 
Current assets held for sale$12.2 $113.9 
Property, plant and equipment, net$— $28.4 
Operating lease right-of-use assets— 2.6 
Other long-term assets— 8.2 
Goodwill— 223.3 
Other intangible assets, net— 106.5 
Noncurrent assets held for sale$— $369.0 
LIABILITIES AND EQUITY
Current liabilities:
Trade accounts payable$— $31.9 
Accrued expenses and other liabilities— 59.6 
Operating lease liabilities— 1.4 
Liabilities for relevant jurisdictions4.0 3.6 
Current liabilities held for sale$4.0 $96.5 
Operating lease liabilities$— $1.2 
Other long-term liabilities— 61.5 
Non-current liabilities for relevant jurisdictions— 0.3 
Noncurrent liabilities held for sale$— $63.0 

The operating results of the Divestiture are reflected in the Consolidated and Combined Statements of Operations within income (loss) from discontinued operations, net of tax as follows ($ in millions):
 Year Ended December 31
 202120202019
Sales$413.5 $352.9 $466.8 
Cost of sales234.6 249.6 302.9 
Gross profit178.9 103.3 163.9 
Operating expenses:
Selling, general and administrative75.6 99.3 100.6 
Research and development16.1 14.1 21.5 
Operating profit (loss)87.2 (10.1)41.8 
Income tax expense (benefit)21.9 (0.9)$8.3 
Income (loss) from discontinued operations65.3 (9.2)33.5 
Gain on sale of discontinued operations, net of tax11.7 — — 
Net income (loss) from discontinued operations$77.0 $(9.2)$33.5 
Significant non-cash operating items and capital expenditures for the Divestiture are reflected in the cash flows from operations as follows ($ in millions):

Year Ended December 31
202120202019
Cash flows from operating activities
Non-cash restructuring charges$— $9.6 $— 
Impairment charges$— $10.5 $— 
Depreciation and amortization1
$5.8 $10.9 $4.2 
Cash flows from investing activities:
Capital expenditures$6.7 $3.8 $3.3 
1 Depreciation and amortization was no longer recognized once the business was classified as discontinued operations as of August 27, 2021.