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 | ||||||
☒ | Accelerated Filer | ☐ | |||||||||||||||
Non-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 | |||||||||||
April 1, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable, less allowance for credit losses of $ | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Assets held for sale | |||||||||||
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 | |||||||||||
Liabilities held for sale | |||||||||||
Total current liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Long-term debt | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock - $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Envista stockholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Sales | $ | $ | |||||||||
Cost of sales | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | |||||||||||
Research and development | |||||||||||
Operating profit | |||||||||||
Nonoperating income (expense): | |||||||||||
Other income | |||||||||||
Interest expense, net | ( | ( | |||||||||
Income before income taxes | |||||||||||
Income tax expense | |||||||||||
Income from continuing operations, net of tax | |||||||||||
Income from discontinued operations, net of tax (refer to Note 2) | |||||||||||
Net income | $ | $ | |||||||||
Earnings per share: | |||||||||||
Earnings from continuing operations - basic | $ | $ | |||||||||
Earnings from continuing operations - diluted | $ | $ | |||||||||
Earnings from discontinued operations - basic | $ | $ | |||||||||
Earnings from discontinued operations - diluted | $ | $ | |||||||||
Earnings - basic | $ | $ | |||||||||
Earnings - diluted | $ | $ | |||||||||
Average common stock and common equivalent shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive (loss) income, net of income taxes: | |||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||
Cash flow hedge adjustments | |||||||||||
Pension plan adjustments | ( | ||||||||||
Total other comprehensive loss, net of income taxes | ( | ( | |||||||||
Comprehensive income | $ | $ |
Three Months Ended April 1, 2022 | |||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Envista Equity | Noncontrolling Interests | ||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
— | ( | — | ( | — | |||||||||||||||||||||||||||||||
Balance, January 1, 2022 | ( | ||||||||||||||||||||||||||||||||||
Change in noncontrolling interest | — | — | — | — | — | ( | |||||||||||||||||||||||||||||
Common stock-based award activity | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | ( | — | |||||||||||||||||||||||||||||
Balance, April 1, 2022 | $ | $ | $ | $ | ( | $ | $ |
Three Months Ended April 2, 2021 | |||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Envista Equity | Noncontrolling Interests | ||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Common stock-based award activity | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | ( | — | |||||||||||||||||||||||||||||
Balance, April 2, 2021 | $ | $ | $ | $ | ( | $ | $ |
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Noncash items: | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
Allowance for credit losses | |||||||||||
Stock-based compensation expense | |||||||||||
Gain on sale of Kavo treatment unit and instrument business | ( | ||||||||||
Restructuring charges | ( | ||||||||||
Impairment charges | |||||||||||
Amortization of right-of-use assets | |||||||||||
Amortization of debt discount and issuance costs | |||||||||||
Change in trade accounts receivable | ( | ( | |||||||||
Change in inventories | ( | ( | |||||||||
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 provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Payments for additions to property, plant and equipment | ( | ( | |||||||||
Proceeds from sale of Kavo treatment unit and instrument business | |||||||||||
All other investing activities, net | ( | ||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Payment of debt issuance and other deferred financing costs | ( | ||||||||||
Proceeds from borrowings | |||||||||||
Repayment of borrowings | ( | ( | |||||||||
Proceeds from stock option exercises | |||||||||||
Tax withholding payment related to net settlement of equity awards | ( | ( | |||||||||
All other financing activities | |||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net change in cash and cash equivalents | ( | ||||||||||
Beginning balance of cash and cash equivalents | |||||||||||
Ending balance of cash and cash equivalents | $ | $ | |||||||||
Supplemental data: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for taxes | $ | $ | |||||||||
ROU assets obtained in exchange for operating lease obligations | $ | $ |
As of | |||||||||||
April 1, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Assets for relevant jurisdictions | $ | $ | |||||||||
Current assets held for sale | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Liabilities for relevant jurisdictions | $ | $ | |||||||||
Current liabilities held for sale | $ | $ | |||||||||
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Sales | $ | $ | |||||||||
Cost of sales | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | |||||||||||
Research and development | |||||||||||
Operating (loss) profit | ( | ||||||||||
Income tax (benefit) expense | |||||||||||
(Loss) income from discontinued operations | ( | ||||||||||
Gain on sale of discontinued operations, net of tax | |||||||||||
Net income from discontinued operations | $ | $ |
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Cash flows from operating activities | |||||||||||
Depreciation and amortization1 | $ | $ | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | $ | $ | |||||||||
1 Depreciation and amortization were no longer recognized once the business was classified as discontinued operations as of August 27, 2021. |
Balance at December 31, 2021 | $ | ||||
Foreign currency translation | |||||
Provision for credit losses | |||||
Write-offs charged against the allowance | ( | ||||
Recoveries | ( | ||||
Balance at April 1, 2022 | $ |
April 1, 2022 | December 31, 2021 | ||||||||||
Finished goods | $ | $ | |||||||||
Work in process | |||||||||||
Raw materials | |||||||||||
Reserve for inventory obsolescence | ( | ( | |||||||||
Total | $ | $ |
April 1, 2022 | December 31, 2021 | ||||||||||
Land and improvements | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Machinery, equipment and other assets | |||||||||||
Construction in progress | |||||||||||
Gross property, plant and equipment | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ |
Specialty Products & Technologies | Equipment & Consumables | Total | |||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ||||||||||||||
Foreign currency translation | ( | ( | ( | ||||||||||||||
Balance at April 1, 2022 | $ | $ | $ |
April 1, 2022 | December 31, 2021 | ||||||||||||||||||||||
Current | Noncurrent | Current | Noncurrent | ||||||||||||||||||||
Compensation and benefits | $ | $ | $ | $ | |||||||||||||||||||
Restructuring-related employee severance, benefits and other | |||||||||||||||||||||||
Pension benefits | |||||||||||||||||||||||
Taxes, income and other | |||||||||||||||||||||||
Contract liabilities | |||||||||||||||||||||||
Sales and product allowances | |||||||||||||||||||||||
Loss contingencies | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Notional Amount | Gain Recognized in OCI | ||||||||||
Three Months Ended April 1, 2022 | |||||||||||
Interest rate contract | $ | $ | |||||||||
Foreign currency contracts | |||||||||||
Foreign currency denominated debt | |||||||||||
Total | $ | $ |
Notional Amount | Gain Recognized in OCI | ||||||||||
Three Months Ended April 2, 2021 | |||||||||||
Interest rate contracts | $ | $ | |||||||||
Foreign currency contracts | |||||||||||
Foreign currency denominated debt | |||||||||||
Total | $ | $ |
April 1, 2022 | December 31, 2021 | ||||||||||
Derivative Assets: | |||||||||||
Other long-term assets | $ | $ | |||||||||
Derivative liabilities: | |||||||||||
Accrued expenses and other liabilities | $ | $ | |||||||||
Nonderivative hedging instruments: | |||||||||||
Long-term debt | $ | $ |
Quoted Prices in Active Market (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
April 1, 2022: | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cross-currency swap derivative contracts | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate swap derivative contracts | $ | $ | $ | $ | |||||||||||||||||||
Deferred compensation plans | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2021: | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate swap derivative contracts | $ | $ | $ | $ | |||||||||||||||||||
Cross-currency swap derivative contracts | $ | $ | $ | $ | |||||||||||||||||||
Deferred compensation plans | $ | $ | $ | $ |
April 1, 2022 | December 31, 2021 | ||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cross-currency swap derivative contracts | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate swap derivative contracts | $ | $ | $ | $ | |||||||||||||||||||
Cross-currency swap derivative contracts | $ | $ | $ | $ | |||||||||||||||||||
Convertible senior notes due 2025 | $ | $ | $ | $ | |||||||||||||||||||
Long-term debt | $ | $ | $ | $ |
Balance at December 31, 2021 | $ | ||||
Accruals for warranties issued during the year | |||||
Settlements made | ( | ||||
Effect of foreign currency translation | ( | ||||
Balance at April 1, 2022 | $ |
April 1, 2022 | December 31, 2021 | ||||||||||
Senior term loan facility due 2024 ($ | $ | $ | |||||||||
Senior euro term loan facility due 2024 (€ | |||||||||||
Convertible senior notes due 2025 ($ | |||||||||||
Other | |||||||||||
Total debt | |||||||||||
Less: current portion | ( | ( | |||||||||
Long-term debt | $ | $ |
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
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 April 1, 2022 | |||||||||||||||||||||||
Balance, December 31, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive (loss) income before reclassifications: | |||||||||||||||||||||||
(Decrease) increase | ( | ( | |||||||||||||||||||||
Income tax impact | ( | ( | ( | ||||||||||||||||||||
Other comprehensive (loss) income 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, April 1, 2022 | $ | ( | $ | ( | $ | ( | $ | ( |
Foreign Currency Translation Adjustments | Unrealized Gain (Loss) on Cash Flow Hedges | Unrealized Pension Costs | Total Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Three Months Ended April 2, 2021 | |||||||||||||||||||||||
Balance, December 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive loss before reclassifications: | |||||||||||||||||||||||
(Decrease) increase | ( | ( | |||||||||||||||||||||
Income tax impact | ( | ( | ( | ||||||||||||||||||||
Other comprehensive (loss) 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 (loss) income, net of income taxes | ( | ( | |||||||||||||||||||||
Balance, April 2, 2021 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended April 1, 2022 | |||||||||||||||||
Specialty Products & Technologies | Equipment & Consumables | Total | |||||||||||||||
Geographical region: | |||||||||||||||||
North America | $ | $ | $ | ||||||||||||||
Western Europe | |||||||||||||||||
Other developed markets | |||||||||||||||||
Emerging markets | |||||||||||||||||
Total | $ | $ | $ |
Three Months Ended April 2, 2021 | |||||||||||||||||
Specialty Products & Technologies | Equipment & Consumables | Total | |||||||||||||||
Geographical region: | |||||||||||||||||
North America | $ | $ | $ | ||||||||||||||
Western Europe | |||||||||||||||||
Other developed markets | |||||||||||||||||
Emerging markets | |||||||||||||||||
Total | $ | $ | $ |
Three Months Ended | |||||||||||
($ in millions) | April 1, 2022 | April 2, 2021 | |||||||||
Consumables | $ | $ | |||||||||
Equipment | |||||||||||
Total | $ | $ |
Employee Severance and Related | Facility Exit and Related | Total | |||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | ||||||||||||||
Costs incurred | ( | ( | |||||||||||||||
Paid/settled | ( | ( | ( | ||||||||||||||
Balance, April 1, 2022 | $ | $ | $ |
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Specialty Products & Technologies | $ | $ | |||||||||
Equipment & Consumables | ( | ||||||||||
Other | |||||||||||
Total | $ | $ |
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Cost of sales | $ | ( | $ | ||||||||
Selling, general and administrative expenses | |||||||||||
Total | $ | $ |
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Numerator: | |||||||||||
Income from continuing operations, net of tax | $ | $ | |||||||||
Income from discontinued operations, net of tax | $ | $ | |||||||||
Net income | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding used in basic earnings (loss) per share | |||||||||||
Incremental common shares from: | |||||||||||
Assumed exercise of dilutive options and vesting of dilutive restricted stock units | |||||||||||
Assumed conversion of the Notes | |||||||||||
Weighted average common shares outstanding used in diluted earnings (loss) per share | |||||||||||
Earnings per share: | |||||||||||
Earnings from continuing operations - basic | $ | $ | |||||||||
Earnings from continuing operations - diluted | $ | $ | |||||||||
Earnings from discontinued operations - basic | $ | $ | |||||||||
Earnings from discontinued operations - diluted | $ | $ | |||||||||
Earnings - basic | $ | $ | |||||||||
Earnings - diluted | $ | $ | |||||||||
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Stock-based awards | |||||||||||
Total |
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Sales: | |||||||||||
Specialty Products & Technologies | $ | $ | |||||||||
Equipment & Consumables | |||||||||||
Total | $ | $ | |||||||||
Operating profit and reconciliation to income before taxes from continuing operations: | |||||||||||
Specialty Products & Technologies | $ | $ | |||||||||
Equipment & Consumables | |||||||||||
Other | ( | ( | |||||||||
Operating profit | |||||||||||
Nonoperating income (expense): | |||||||||||
Other income | |||||||||||
Interest expense, net | ( | ( | |||||||||
Income before taxes from continuing operations | $ | $ | |||||||||
Identifiable assets: | April 1, 2022 | December 31, 2021 | |||||||||
Specialty Products & Technologies | $ | $ | |||||||||
Equipment & Consumables | |||||||||||
Held for Sale | |||||||||||
Other | |||||||||||
Total | $ | $ |
Three Months Ended | ||||||||||||||||||||
($ in millions) | April 1, 2022 | April 2, 2021 | % Change | |||||||||||||||||
Sales | $ | 631.4 | 100.0% | $ | 612.6 | 100.0% | 3.1 | % | ||||||||||||
Cost of sales | 257.3 | 40.8% | 254.2 | 41.5% | 1.2 | % | ||||||||||||||
Gross profit | 374.1 | 59.2% | 358.4 | 58.5% | 4.4 | % | ||||||||||||||
Operating costs: | ||||||||||||||||||||
Selling, general and administrative (“SG&A”) expenses | 258.2 | 40.9% | 237.5 | 38.8% | 8.7 | % | ||||||||||||||
Research and development (“R&D”) expenses | 24.4 | 3.9% | 25.8 | 4.2% | (5.4) | % | ||||||||||||||
Operating profit | 91.5 | 14.5% | 95.1 | 15.5% | (3.8) | % | ||||||||||||||
Nonoperating income (expense): | ||||||||||||||||||||
Other income | 0.3 | —% | 0.3 | —% | — | % | ||||||||||||||
Interest expense, net | (5.9) | (0.9)% | (18.0) | (2.9)% | (67.2) | % | ||||||||||||||
Income before income taxes | 85.9 | 13.6% | 77.4 | 12.6% | 11.0 | % | ||||||||||||||
Income tax expense | 15.5 | 2.5% | 15.6 | 2.5% | (0.6) | % | ||||||||||||||
Income from continuing operations | 70.4 | 11.1% | 61.8 | 10.1% | 13.9 | % | ||||||||||||||
Income from discontinued operations, net of tax | 4.5 | 0.7% | 9.9 | 1.6% | (54.5) | % | ||||||||||||||
Net income | $ | 74.9 | 11.9% | $ | 71.7 | 11.7% | 4.5 | % | ||||||||||||
Effective tax rate from continuing operations | 18.0 | % | 20.2 | % |
% Change Three Month Period Ended April 1, 2022 vs. Comparable 2021 Period | |||||
Total sales growth (GAAP) | 3.1 | % | |||
Plus the impact of: | |||||
Currency exchange rates | 2.3 | % | |||
Core sales growth (non-GAAP) | 5.4 | % |
Three Months Ended | |||||||||||
($ in millions) | April 1, 2022 | April 2, 2021 | |||||||||
Sales | $ | 631.4 | $ | 612.6 | |||||||
Cost of sales | 257.3 | 254.2 | |||||||||
Gross profit | $ | 374.1 | $ | 358.4 | |||||||
Gross profit margin | 59.2 | % | 58.5 | % |
Three Months Ended | |||||||||||
($ in millions) | April 1, 2022 | April 2, 2021 | |||||||||
Sales | $ | 631.4 | $ | 612.6 | |||||||
Selling, general and administrative expenses | $ | 258.2 | $ | 237.5 | |||||||
Research and development expenses | $ | 24.4 | $ | 25.8 | |||||||
SG&A as a % of sales | 40.9 | % | 38.8 | % | |||||||
R&D as a % of sales | 3.9 | % | 4.2 | % |
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Effective tax rate from continuing operations | 18.0 | % | 20.2 | % |
Three Months Ended | |||||||||||
($ in millions) | April 1, 2022 | April 2, 2021 | |||||||||
Sales | $ | 397.1 | $ | 366.5 | |||||||
Operating profit | $ | 70.3 | $ | 78.4 | |||||||
Operating profit as a % of sales | 17.7 | % | 21.4 | % |
% Change Three Month Period Ended April 1, 2022 vs. Comparable 2021 Period | |||||
Total sales growth (GAAP) | 8.3 | % | |||
Plus the impact of: | |||||
Currency exchange rates | 2.9 | % | |||
Core sales growth (non-GAAP) | 11.2 | % |
Three Months Ended | |||||||||||
($ in millions) | April 1, 2022 | April 2, 2021 | |||||||||
Sales | $ | 234.3 | $ | 246.1 | |||||||
Operating profit | $ | 45.5 | $ | 45.0 | |||||||
Operating profit as a % of sales | 19.4 | % | 18.3 | % |
% Change Three Month Period Ended April 1, 2022 vs. Comparable 2021 Period | |||||
Total sales growth (GAAP) | (4.8) | % | |||
Plus the impact of: | |||||
Currency exchange rates | 1.5 | % | |||
Core sales growth (non-GAAP) | (3.3) | % |
Three Months Ended | |||||||||||
April 1, 2022 | April 2, 2021 | ||||||||||
Net cash provided by operating activities | $ | 3.5 | $ | 16.6 | |||||||
Payments for additions to property, plant and equipment | (19.8) | (8.3) | |||||||||
Proceeds from sale of Kavo treatment unit and instrument business | 30.0 | — | |||||||||
All other investing activities, net | (5.1) | 2.8 | |||||||||
Net cash provided by (used in) investing activities | $ | 5.1 | $ | (5.5) | |||||||
Payment of debt issuance and other deferred financing costs | — | (0.4) | |||||||||
Proceeds from borrowings | 0.3 | — | |||||||||
Repayment of borrowings | (0.5) | (475.5) | |||||||||
Proceeds from stock option exercises | 13.1 | 5.3 | |||||||||
Tax withholding payment related to net settlement of equity awards | (7.6) | (5.2) | |||||||||
All other financing activities | — | 6.2 | |||||||||
Net cash provided by (used in) financing activities | $ | 5.3 | $ | (469.6) |
Exhibit Number | Description | ||||
3.1 | |||||
3.2 | |||||
10.1 | |||||
10.2* | |||||
10.3* | |||||
10.4* | |||||
10.5* | |||||
10.6* | |||||
10.7* | |||||
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) | ||||
*Indicates management contract or compensatory plan, contract or arrangement. |
ENVISTA HOLDINGS CORPORATION | ||||||||
Date: May 4, 2022 | By: | /s/ Howard H. Yu | ||||||
Howard H. Yu | ||||||||
Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
CARESTREAM DENTAL | ||
TECHNOLOGY PARENT LIMITED | ||
By: /s/ Jane Guinn | ||
Name: Jane Guinn | ||
Title: Director | ||
ENVISTA HOLDINGS CORPORATION | ||
By: /s/ Amir Aghdaei | ||
Name: Amir Aghdaei | ||
Title: CEO |
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: May 4, 2022 | ||||||||
/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: May 4, 2022 | ||||||||
/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 April 1, 2022, 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 as of and for the periods presented in the Report. | ||||||||||||||
Date: May 4, 2022 | ||||||||||||||
/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 April 1, 2022, 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 as of and for the periods presented in the Report. | ||||||||||||||
Date: May 4, 2022 | ||||||||||||||
/s/ Howard H. Yu | ||||||||||||||
Howard H. Yu | ||||||||||||||
Senior Vice President and Chief Financial Officer |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
Apr. 01, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 20.3 | $ 20.7 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred shares issued (in shares) | 0 | 0 |
Preferred shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 163,200,000 | 162,000,000 |
Common stock, shares outstanding (in shares) | 162,600,000 | 161,600,000 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 01, 2022 |
Apr. 02, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 74.9 | $ 71.7 |
Other comprehensive (loss) income, net of income taxes: | ||
Foreign currency translation adjustments | (59.6) | (53.7) |
Cash flow hedge adjustments | 1.4 | 1.4 |
Pension plan adjustments | (0.1) | 0.2 |
Total other comprehensive loss, net of income taxes | (58.3) | (52.1) |
Comprehensive income | $ 16.6 | $ 19.6 |
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Millions |
Total |
Total Envista Equity |
Total Envista Equity
Adjustment
|
Total Envista Equity
Adjusted balance
|
Common Stock |
Common Stock
Adjusted balance
|
Additional Paid-in Capital |
Additional Paid-in Capital
Adjustment
|
Additional Paid-in Capital
Adjusted balance
|
Retained Earnings |
Retained Earnings
Adjustment
|
Retained Earnings
Adjusted balance
|
Accumulated Other Comprehensive Loss |
Accumulated Other Comprehensive Loss
Adjusted balance
|
Noncontrolling Interests |
Noncontrolling Interests
Adjusted balance
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance, beginning of period at Dec. 31, 2020 | $ 3,720.6 | $ 1.6 | $ 3,684.4 | $ 126.4 | $ (91.8) | $ 0.4 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock-based award activity | 6.7 | 6.7 | ||||||||||||||
Net income | $ 71.7 | 71.7 | 71.7 | |||||||||||||
Other comprehensive income (loss) | $ (52.1) | (52.1) | (52.1) | |||||||||||||
Balance, end of period at Apr. 02, 2021 | 3,746.9 | 1.6 | 3,691.1 | 198.1 | (143.9) | 0.4 | ||||||||||
Balance, beginning of period at Dec. 31, 2020 | 3,720.6 | 1.6 | 3,684.4 | 126.4 | (91.8) | 0.4 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 [Member] | |||||||||||||||
Balance, end of period at Dec. 31, 2021 | $ 4,058.0 | 4,057.6 | $ (56.4) | $ 4,001.2 | 1.6 | $ 1.6 | 3,732.6 | $ (77.8) | $ 3,654.8 | 466.9 | $ 21.4 | $ 488.3 | (143.5) | $ (143.5) | 0.4 | $ 0.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Change in noncontrolling interest | (0.4) | |||||||||||||||
Common stock-based award activity | 13.1 | 13.1 | ||||||||||||||
Net income | 74.9 | 74.9 | 74.9 | |||||||||||||
Other comprehensive income (loss) | (58.3) | (58.3) | (58.3) | |||||||||||||
Balance, end of period at Apr. 01, 2022 | $ 4,030.9 | $ 4,030.9 | $ 1.6 | $ 3,667.9 | $ 563.2 | $ (201.8) | $ 0.0 |
Business And Basis Of Presentation |
3 Months Ended |
---|---|
Apr. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION 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; 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 All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the financial statements. All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). 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 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 April 1, 2022 and December 31, 2021, and its results of operations and cash flows for the three month periods ended April 1, 2022 and April 2, 2021. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Consolidated and Combined Financial Statements and accompanying notes for the three years ended December 31, 2021, included in the Annual Report on Form 10-K filed by the Company with the SEC on February 24, 2022. As discussed in Note 2, Discontinued Operations, on December 31, 2021, the Company completed the sale of its KaVo dental treatment unit and instrument business (the "KaVo Treatment Unit and Instrument Business"), which was part of the Company’s Equipment and Consumables segment. The previously reported amounts for the KaVo Treatment Unit and Instrument Business have been reclassified to discontinued operations for all periods presented. All segment information and descriptions exclude the KaVo Treatment Unit and Instrument Business. Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the novel coronavirus (“COVID-19”) pandemic. During the first quarter of 2022, the Company continued to see positive signs of recovery in certain markets in which it operates, however, certain markets continue to be more adversely impacted than others. Late in the first quarter of 2022, the Chinese authorities instituted COVID-19-related lockdowns, shut-downs and restrictions in certain parts of China, specifically the Shanghai area, which impacted the Company’s operations in China. The extent to which these restrictions continue and the possible geographical expansion of these restrictions will depend upon the Chinese authorities’ response to the affected regions of China. 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 rise of new variants, 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 (including its various mutations) and 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 and to find suitable alternative products at reasonable prices, the Company’s ability to continue to ship and deliver its products in a cost-effective and timely manner, uncertain demand, staffing shortages, 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 pandemic has subsided, the Company may continue to experience materially adverse impacts on the Company’s financial condition and results of operations. In addition, Russia’s invasion of Ukraine and the global response to this invasion, including sanctions imposed by the U.S. and other countries, could have an adverse impact on the Company’s business, including by impacting the Company’s ability to market and sell products in Russia, by impacting its ability to enforce its intellectual property rights in Russia, by creating disruptions in the global supply chain, and by potentially having an adverse impact on the global economy, financial markets, energy markets, currency rates and otherwise. Accounting Standards Recently Adopted In October 2021, the FASB issued ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805), which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts, rather than at fair value. This standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. The Company adopted this guidance on January 1, 2022, which did not have a significant impact on the Company’s Condensed Consolidated Financial Statements. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40),” (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. This guidance is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. The ASU was effective for public entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Effective January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective adoption approach. The cumulative effect of the change was recognized as an adjustment to the opening balance of retained earnings at the date of adoption. The comparative prior year information has not been restated and continues to be presented according to accounting standards in effect for those periods. The adoption of ASU 2020-06 resulted in a $75.0 million increase to the carrying value of the convertible notes due 2025, net of deferred debt issuance costs and unamortized discount and a decrease to additional paid-in capital of $77.8 million. Additionally, the adoption resulted in a $21.4 million increase to retained earnings and a $18.6 million decrease to the related net deferred tax liability associated with the reduction of unamortized debt discount and deferred debt issuance costs. Refer to Note 12 for a further discussion of the impact of adopting ASU 2020-06. 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 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 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 Financial Statements.
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Discontinued Operations |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 recognized a gain of $4.6 million on the Divestiture during the three months ended April 1, 2022 primarily due to the recognition of certain purchase price adjustments. In addition, the Company received an earnout payment of $30.0 million in the first quarter of 2022. 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 $10.8 million for the proceeds related to the Relevant Jurisdictions as of April 1, 2022, and December 31, 2021. The Company will recognize the applicable gain or loss at the time of each Relevant Jurisdiction’s applicable closing. As of April 1, 2022, none of the Relevant Jurisdictions had closed. The Relevant Jurisdictions are expected to close at various points throughout 2022. In conjunction with the Divestiture, the Company entered into a customary transition services agreement, which requires support transition services to Planmeca throughout the applicable transition period. For the three months ended April 1, 2022 the Divestiture continued to meet the criteria to be classified as held for sale and to be presented as a discontinued operation. Accordingly, the Company reclassified the results of operations and financial position of the Divestiture to discontinued operations in its accompanying Condensed Consolidated Statements of Income and Condensed Consolidated Balance Sheets for all periods presented. The Company’s Condensed Consolidated Statements of Cash Flows for all periods presented include the financial results of the KaVo Treatment Unit and Instruments Business. For the three months ended April 2, 2021, balances represent activity for the entire Divestiture, while balances for the three month ended April 1, 2022, represent activity for the remaining Relevant Jurisdictions. The carrying amounts of the assets and liabilities of the Divestiture held for sale are as follows ($ in millions):
The operating results of the Divestiture are reflected in the Condensed Consolidated Statements of Income within income from discontinued operations, net of tax as follows ($ in millions):
Significant non-cash operating items and capital expenditures for the Divestiture are reflected in the cash flows from operations as follows ($ in millions):
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Credit Losses |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||
Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Credit Losses | CREDIT LOSSESThe allowance for credit 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. 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):
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Inventories |
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES The classes of inventory are summarized as follows ($ in millions):
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Property, Plant And Equipment |
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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):
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Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | GOODWILL The following is a rollforward of the Company’s goodwill by segment ($ in millions):
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Accrued Expenses And Other Liabilities |
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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):
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Hedging Transactions And Derivative Financial Instruments |
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedging Transactions and Derivative Financial Instruments | 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. The Company maintains cross-currency swap derivative contracts with respect to its $650.0 million senior unsecured term loan facility. These contracts effectively convert the $650.0 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, in the accompanying Condensed Consolidated Balance Sheets, 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 13. 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, net in the Company’s Condensed Consolidated Statements of Income consistent with the classification of interest expense attributable to the underlying debt. These instruments mature in September 2024. The Company also has foreign currency denominated long-term debt in the amount of €208.0 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 in equity (see Note 13). 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 2024. Refer to Note 12 for a further discussion of the above 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 13). 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 Statements of Income consistent with the classification of interest expense attributable to the underlying debt. The current outstanding interest rate swap matures in September 2022. The following table summarizes the notional values as of April 1, 2022 and April 2, 2021 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 months ended April 1, 2022 and April 2, 2021 ($ in millions):
Gains or losses related to the foreign currency contracts and foreign currency denominated debt are classified as foreign currency translation adjustments in the schedule of changes in OCI in Note 13, as these items are attributable to the Company’s hedges of its net investment in foreign operations. Gains or losses related to the interest rate contracts are classified as cash flow hedge adjustments in the schedule of changes in OCI in Note 13. 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 months ended April 1, 2022 and April 2, 2021. In addition, the Company did not have any ineffectiveness related to net investment and cash flow hedges during the three months ended April 1, 2022 and April 2, 2021. 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 Statements of Cash Flows. 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):
Amounts related to the Company’s derivatives expected to be reclassified from accumulated other comprehensive loss to net income during the next 12 months are not significant.
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Fair Value Measurements |
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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):
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Warranty |
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Warranty | WARRANTYThe 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):
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Litigation And Contingencies |
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Apr. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation And Contingencies | LITIGATION AND CONTINGENCIES 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 $41.0 million and $38.7 million as of April 1, 2022 and December 31, 2021, 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 Condensed Consolidated Balance Sheets, 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.
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Debt And Credit Facilities |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt And Credit Facilities | DEBT AND CREDIT FACILITIES The components of the Company’s debt were as follows ($ in millions):
As of April 1, 2022 unamortized debt issuance costs totaled $12.5 million. As of December 31, 2021 unamortized debt issuance costs and discount totaled $88.6 million. Unamortized debt issuance costs and discount 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 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 $650.0 million Term Loan Facility and the three-year €600.0 million Euro Term Loan Facility (together with the Term Loan Facility, the “Term Loans”). The Credit Agreement also included the five-year, $250.0 million revolving credit facility (the “Revolving Credit Facility” and 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. On February 9, 2021, in connection with an amendment to the Credit Agreement, the Company repaid $472.0 million of its Euro Term Loan Facility. On June 15, 2021, the Company entered into an amended and restated credit agreement (the “Amended Credit Agreement”) with a syndicate of banks including Bank of America, N.A. as administrative agent (the “Administrative Agent”). The Amended Credit Agreement amends and restates the Company’s Credit Agreement, originally dated September 20, 2019 (as amended by Amendment No. 1 to Credit Agreement dated as of May 6, 2020, Amendment No. 2 to Credit Agreement dated as of May 19, 2020, and Amendment No. 3 to Credit Agreement dated as of February 9, 2021). Under the Amended Credit Agreement: (a) the maturity date of the Company’s existing Term Loans has been extended to September 20, 2024, (b) the Revolving Credit Facility has been increased from $250.0 million to $750.0 million, (c) the Company may request further increases to the Revolving Credit Facility in an aggregate amount not to exceed $350.0 million, (d) the amount of cash and cash equivalents permitted to be netted in the definition of “Consolidated Funded Indebtedness” has been increased to up to the greater of (i) $250.0 million and (ii) 50% of Consolidated EBITDA as of the most recent measurement period, and (e) the floor on Eurocurrency rate loans applicable to the Revolving Credit Facility and the Term Loan Facility has been reduced to zero, in each case subject to and in accordance with the terms and conditions of the Amended Credit Agreement. The Company paid fees aggregating approximately $2.1 million in connection with the Amended Credit Agreement. The Revolving Credit Facility includes an aggregate principal amount of $750.0 million with a $20.0 million sublimit for the issuance of standby letters of credit. The Revolving Credit Facility can be used for working capital and other general corporate purposes. As of April 1, 2022 and December 31, 2021, there were no borrowings outstanding under the Revolving Credit Facility. Under the Senior Credit Facilities, borrowings bear interest as follows: (1) Eurocurrency Rate Loans (as defined in the Amended Credit Agreement) bear interest at a variable rate equal to the London inter-bank offered (“LIBOR”) rate plus a margin of between 0.785% and 1.625%, depending on the Company’s Consolidated Leverage Ratio (as defined in the Amended Credit Agreement) as of the last day of the immediately preceding fiscal quarter; and (2) Base Rate Loans (as defined in the Amended Credit Agreement) bear interest at a variable rate equal to (a) the highest of (i) the Federal funds rate (as published by the Federal Reserve Bank of New York from time to time) plus 0.50%, (ii) Bank of America’s “prime rate” as publicly announced from time to time and (iii) the Eurocurrency Rate (as defined in the Amended Credit Agreement) plus 1.0%, plus (b) a margin of between 0.00% and 0.625%, depending on the Company’s Consolidated Leverage Ratio as of the last day of the immediately preceding fiscal quarter. In no event will Eurocurrency Rate Loans or Base Rate Loans bear interest at a rate lower than 0.0%. In addition, the Company is required to pay a per annum facility fee of between 0.09% and 0.225% depending on the Company’s Consolidated Leverage Ratio as of the last day of the immediately preceding fiscal quarter and based on the aggregate commitments under the Revolving Credit Facility, whether drawn or not. The interest rates for borrowings under the Term Loan Facility were 1.34% and 1.25% as of April 1, 2022 and December 31, 2021, respectively. The interest rate for borrowings under the Euro Term Loan Facility was 0.95% as of April 1, 2022 and December 31, 2021. Interest is payable quarterly for the Term Loans. The Company has entered into interest rate swap derivative contracts for the Term Loan Facility, as further discussed in Note 8. The Amended Credit Agreement requires the Company to maintain a Consolidated Leverage Ratio of 3.75 to 1.00 or less and includes a provision that the maximum Consolidated Leverage Ratio will be increased to 4.25 to 1.00 for the four consecutive full fiscal quarters immediately following the consummation of any acquisition by the Company or any subsidiary of the Company in which the purchase price exceeds $100.0 million. The Amended Credit Agreement also requires the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Amended Credit Agreement) of at least 3.00 to 1.00. The Amended Credit Agreement contains customary representations, warranties, conditions precedent, events of default, indemnities and affirmative and negative covenants, including covenants that, among other things, limit or restrict the Company’s and/or the Company’s subsidiaries ability, subject to certain exceptions and qualifications, to incur liens or indebtedness, merge, consolidate or sell or otherwise transfer assets, make dividends or distributions, enter into transactions with the Company’s affiliates and use proceeds of the debt financing for other than permitted uses. The Amended 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 Amended Credit Agreement immediately due and payable. The Company was in compliance with all of its debt covenants as of April 1, 2022. 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 $67.5 million principal amount of the Notes, was $517.5 million. The net proceeds from the issuance, after deducting purchasers’ discounts and estimated offering expenses, were $502.6 million. The Company used part of the net proceeds to pay for the capped call transactions (“Capped Calls”) as further described below. The Notes 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. Prior to the adoption of ASU 2020-06, the Company separated the carrying amounts of the Notes and total issuance costs incurred into liability and equity components. For the Notes, 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, while 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. Total issuance costs incurred were then allocated to the liability and equity components of the Notes based on their relative values. Due to the Company’s adoption of ASU 2020-06 on January 1, 2022, as discussed in Note 1, the Notes and related issuance costs incurred are no longer required to be bifurcated into separate liability and equity components. This resulted in a $75.0 million increase to the carrying value of the Notes due 2025, comprised of unamortized discount of $76.5 million and deferred debt issuance costs of $1.5 million and a decrease to additional paid-in capital of $77.8 million. Additionally, the adoption of ASU 2020-06 resulted in a $21.4 million increase to retained earnings and a $18.6 million decrease to the related net deferred tax liability associated with the reduction of unamortized debt discount and deferred debt issuance costs. As of April 1, 2022, the unamortized debt issuance costs on the Notes was $9.7 million and is being amortized over the term of the Notes. The Notes are the Company’s senior, unsecured obligations and are (i) equal in right of payment with the Company’s 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. In December 2021, the Company made the irrevocable election 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 cash, shares of the Company’s common stock or a combination of both. 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 100.0% 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 April 1, 2022 and December 31, 2021, the stock price exceeded 130% of the conversion price of $21.01 in 20 days of the final 30 trading days ended April 1, 2022 and December 31, 2021, which satisfied one of the conditions permitting early conversion by holders of the Notes, therefore, the Notes are classified as short-term debt. The Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after June 1, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date, but only if the last reported sale price per share of the Company’s common stock exceeds 130.0% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any Note for redemption will constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption. The following table sets forth total interest expense recognized related to the Notes ($ in millions):
For the three months ended April 1, 2022, the debt discount and debt issuance costs were amortized using an annual effective interest rate of 3.0%, to interest expense over the term of the Notes. As of April 1, 2022 and December 31, 2021, the if-converted value of the Notes exceeded the outstanding principal amount by $667.0 million and $592.1 million, respectively. 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 $20.7 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital.
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Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component are summarized below ($ in millions).
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | REVENUE The following table presents the Company’s revenues disaggregated by geographical region for the three months ended April 1, 2022 and April 2, 2021 ($ 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, experienced extended periods of accelerated growth in gross domestic product and infrastructure, including 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:
Remaining Performance Obligations 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 April 1, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $35.5 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 April 1, 2022 and December 31, 2021, the contract liabilities were $79.0 million and $65.2 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 three months ended April 1, 2022 that was included in the contract liability balance at December 31, 2021 was $24.8 million. Revenue recognized during the three months ended April 2, 2021 that was included in the contract liability balance at December 31, 2020 was $18.9 million. Significant Customers Sales to the Company’s largest customer were 10% and 13% of sales for the three months ended April 1, 2022 and April 2, 2021, respectively. No other individual customer accounted for more than 10% of sales for the three months ended April 1, 2022 and April 2, 2021, respectively. Seasonality Based on historical experience, the Company generally has more sales in the second half of the calendar year than in the first half of the calendar year, with the first quarter typically having the lowest sales of the year. Based on historical customer buying patterns, the Company generally has more sales in the fourth quarter than in any other quarter of the year, driven in particular by capital spending in the Equipment & Consumables segment. As a result of this seasonality in sales, profitability in the Equipment & Consumables segment also tends to be higher in the second half of the year. There are no assurances that these historical trends will continue in the future and the ongoing COVID-19 pandemic may impact these trends.
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Restructuring Activities And Related Impairments |
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Restructuring Activities And Related Impairments | RESTRUCTURING ACTIVITIES AND RELATED IMPAIRMENTS Restructuring Activities The Company’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, take advantage of available capacity and resources, and ultimately achieve net cost reductions. These activities generally relate to the realignment of existing manufacturing capacity and closure of facilities and other exit or disposal activities, as it relates to executing the Company’s strategy, either in the normal course of business or pursuant to significant restructuring programs. The related liability which is included in accrued liabilities in the Condensed Consolidated Balance Sheets is summarized below ($ in millions):
Restructuring related charges recorded for the three months ended April 1, 2022 and April 2, 2021, by segment were as follows ($ in millions):
The restructuring related charges incurred during the three months ended April 1, 2022 and April 2, 2021, are reflected in the following captions in the accompanying Condensed Consolidated Statements of Income ($ in millions):
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Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rates from continuing operations of 18.0% and 20.2% for the three months ended April 1, 2022 and April 2, 2021, respectively, differ from the U.S. federal statutory rate of 21.0%, primarily due to the Company’s geographical mix of earnings and net discrete tax benefits. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE Earnings per share is calculated by dividing the applicable 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 will settle any 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 cash or shares in the Company’s common stock or any combination thereof. 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 will settle the principal amount of the Notes in cash upon conversion, the Notes do 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 any applicable period. See the computation of earnings per share below for the dilutive impact of the Notes for the three months ended April 1, 2022 and April 2, 2021. In connection with the offering of the Notes, the Company entered into Capped Calls (see further discussion in Note 12), 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. The Capped Calls will mitigate dilution from the conversion of the Notes up to the Company’s common stock price of $23.79. If the Notes are converted at a price higher than $23.79 per share, the Capped Calls will no longer mitigate dilution from the conversion of the Notes. The table below presents the computation of basic and diluted earnings per share ($ and shares in millions, except per share amounts):
The following table presents the number of outstanding securities not included in the computation of diluted income per share, because their effect was anti-dilutive (in millions):
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Segment Information |
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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 digital imaging systems, software and other visualization and magnification systems. On December 31, 2021, the Company completed the sale of its KaVo Treatment Unit and Instrument Business, which was part of the Company’s Equipment & Consumables segment. The previously reported amounts for the KaVo Treatment Unit and Instrument Business have been reclassified to discontinued operations for all periods presented. All segment information and descriptions exclude the KaVo Treatment Unit and Instrument Business. Refer to Note 2 for more information on the Company’s discontinued operations. Segment related information is shown below ($ in millions):
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Subsequent Events |
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Apr. 01, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTOn April 20, 2022, the Company completed its purchase of Carestream Dental Technology Parent Limited’s (“Carestream”) intraoral scanner business for total consideration of approximately $582.5 million, subject to certain customary adjustments as provided in the Stock and Asset Purchase Agreement dated December 21, 2021. The Company has purchased the intraoral scanner business through the acquisition of certain assets and the assumption of certain liabilities, as well as the acquisition of the equity of certain subsidiaries of Carestream. |
Business And Basis Of Presentation (Policies) |
3 Months Ended |
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Apr. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the financial statements. All significant intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). 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 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 April 1, 2022 and December 31, 2021, and its results of operations and cash flows for the three month periods ended April 1, 2022 and April 2, 2021. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Consolidated and Combined Financial Statements and accompanying notes for the three years ended December 31, 2021, included in the Annual Report on Form 10-K filed by the Company with the SEC on February 24, 2022. As discussed in Note 2, Discontinued Operations, on December 31, 2021, the Company completed the sale of its KaVo dental treatment unit and instrument business (the "KaVo Treatment Unit and Instrument Business"), which was part of the Company’s Equipment and Consumables segment. The previously reported amounts for the KaVo Treatment Unit and Instrument Business have been reclassified to discontinued operations for all periods presented. All segment information and descriptions exclude the KaVo Treatment Unit and Instrument Business.
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Accounting Standards Recently Adopted and Not Yet Adopted | Accounting Standards Recently Adopted In October 2021, the FASB issued ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805), which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts, rather than at fair value. This standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. The Company adopted this guidance on January 1, 2022, which did not have a significant impact on the Company’s Condensed Consolidated Financial Statements. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40),” (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. This guidance is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. The ASU was effective for public entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Effective January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective adoption approach. The cumulative effect of the change was recognized as an adjustment to the opening balance of retained earnings at the date of adoption. The comparative prior year information has not been restated and continues to be presented according to accounting standards in effect for those periods. The adoption of ASU 2020-06 resulted in a $75.0 million increase to the carrying value of the convertible notes due 2025, net of deferred debt issuance costs and unamortized discount and a decrease to additional paid-in capital of $77.8 million. Additionally, the adoption resulted in a $21.4 million increase to retained earnings and a $18.6 million decrease to the related net deferred tax liability associated with the reduction of unamortized debt discount and deferred debt issuance costs. Refer to Note 12 for a further discussion of the impact of adopting ASU 2020-06. 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 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 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 Financial Statements.
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Discontinued Operations (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Discontinued Operations | The carrying amounts of the assets and liabilities of the Divestiture held for sale are as follows ($ in millions):
The operating results of the Divestiture are reflected in the Condensed Consolidated Statements of Income within income from discontinued operations, net of tax as follows ($ in millions):
Significant non-cash operating items and capital expenditures for the Divestiture are reflected in the cash flows from operations as follows ($ in millions):
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Credit Losses (Tables) |
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Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Loss | The rollforward of the allowance for credit losses is summarized as follows ($ in millions):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | The classes of inventory are summarized as follows ($ in millions):
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Property, Plant And Equipment (Tables) |
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | The classes of property, plant and equipment are summarized as follows ($ in millions):
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Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollforward and Carrying Value Of Goodwill | The following is a rollforward of the Company’s goodwill by segment ($ in millions):
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Accrued Expenses And Other Liabilities (Tables) |
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Accrued expenses and other [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Components of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities were as follows ($ in millions):
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Hedging Transactions And Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) | The following table summarizes the notional values as of April 1, 2022 and April 2, 2021 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 months ended April 1, 2022 and April 2, 2021 ($ in millions):
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Schedule of Notional Amounts of Outstanding Derivative Positions | The following table summarizes the notional values as of April 1, 2022 and April 2, 2021 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 months ended April 1, 2022 and April 2, 2021 ($ in millions):
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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):
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets And Liabilities At Carrying and Fair Value | A summary of financial assets and liabilities that are measured at fair value on a recurring basis were as follows ($ in millions):
The carrying amounts and fair values of the Company’s financial instruments were as follows ($ in millions):
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Warranty (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Warranty Accrual | The following is a rollforward of the Company’s accrued warranty liability ($ in millions):
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Debt And Credit Facilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Debt | The components of the Company’s debt were as follows ($ in millions):
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Components of Note Interest Expense | The following table sets forth total interest expense recognized related to the Notes ($ in millions):
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Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss by component are summarized below ($ in millions).
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Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue by Geographical Region and Type | The following table presents the Company’s revenues disaggregated by geographical region for the three months ended April 1, 2022 and April 2, 2021 ($ 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, experienced extended periods of accelerated growth in gross domestic product and infrastructure, including 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:
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Restructuring Activities And Related Impairments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The related liability which is included in accrued liabilities in the Condensed Consolidated Balance Sheets is summarized below ($ in millions):
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Schedule of Restructuring Reserve by Type of Cost | Restructuring related charges recorded for the three months ended April 1, 2022 and April 2, 2021, by segment were as follows ($ in millions):
The restructuring related charges incurred during the three months ended April 1, 2022 and April 2, 2021, are reflected in the following captions in the accompanying Condensed Consolidated Statements of Income ($ in millions):
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The table below presents the computation of basic and diluted earnings per share ($ and shares in millions, except per share amounts):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the number of outstanding securities not included in the computation of diluted income per share, because their effect was anti-dilutive (in millions):
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Results | Segment related information is shown below ($ in millions):
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Discontinued Operations - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Apr. 01, 2022 |
Apr. 02, 2021 |
Dec. 31, 2021 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of Kavo treatment unit and instrument business | $ 30.0 | $ 0.0 | |
Discontinued Operations, Disposed of by Sale | Plamenca | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration | $ 317.3 | ||
Gain (loss) on disposal | 4.6 | $ 0.0 | |
Proceeds from sale of Kavo treatment unit and instrument business | $ 30.0 | ||
Liability for proceeds related to the Relevant Jurisdictions | $ 10.8 |
Discontinued Operations - Carrying Amount of Assets and Liabilities (Details) - USD ($) $ in Millions |
Apr. 01, 2022 |
Dec. 31, 2021 |
---|---|---|
Current assets: | ||
Current assets held for sale | $ 10.2 | $ 12.2 |
Current liabilities: | ||
Current liabilities held for sale | 2.4 | 4.0 |
Discontinued Operations, Disposed of by Sale | Plamenca | ||
Current assets: | ||
Assets for relevant jurisdictions | 10.2 | 12.2 |
Current assets held for sale | 10.2 | 12.2 |
Current liabilities: | ||
Liabilities for relevant jurisdictions | 2.4 | 4.0 |
Current liabilities held for sale | $ 2.4 | $ 4.0 |
Discontinued Operations - Operating Results (Details) - Discontinued Operations, Disposed of by Sale - Plamenca - USD ($) $ in Millions |
3 Months Ended | |
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Apr. 01, 2022 |
Apr. 02, 2021 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales | $ 6.9 | $ 96.6 |
Cost of sales | 5.9 | 57.7 |
Gross profit | 1.0 | 38.9 |
Operating expenses: | ||
Selling, general and administrative | 1.1 | 21.3 |
Research and development | 0.0 | 4.4 |
Operating (loss) profit | (0.1) | 13.2 |
Income tax (benefit) expense | 0.0 | 3.3 |
(Loss) income from discontinued operations | (0.1) | 9.9 |
Gain on sale of discontinued operations, net of tax | 4.6 | 0.0 |
Net income from discontinued operations | $ 4.5 | $ 9.9 |
Discontinued Operations - Significant Non-Cash Operating Items and Capital Expenditures (Details) - Discontinued Operations, Disposed of by Sale - Plamenca - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 01, 2022 |
Apr. 02, 2021 |
|
Cash flows from operating activities | ||
Depreciation and amortization | $ 0.0 | $ 2.1 |
Cash flows from investing activities: | ||
Capital expenditures | $ 0.0 | $ 0.9 |
Credit Losses - Narrative (Details) |
3 Months Ended |
---|---|
Apr. 01, 2022
segment
| |
Credit Loss [Abstract] | |
Number of portfolio segments (in segments) | 1 |
Credit Losses - Allowance for Credit Losses (Details) $ in Millions |
3 Months Ended |
---|---|
Apr. 01, 2022
USD ($)
| |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 20.7 |
Foreign currency translation | 0.2 |
Provision for credit losses | 1.7 |
Write-offs charged against the allowance | (1.6) |
Recoveries | (0.7) |
Ending balance | $ 20.3 |
Inventories - Summary (Details) - USD ($) $ in Millions |
Apr. 01, 2022 |
Dec. 31, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 228.0 | $ 214.3 |
Work in process | 23.5 | 22.0 |
Raw materials | 87.5 | 88.3 |
Reserve for inventory obsolescence | (58.6) | (60.8) |
Total | $ 280.4 | $ 263.8 |
Property, Plant And Equipment (Details) - USD ($) $ in Millions |
Apr. 01, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 580.8 | $ 579.5 |
Less: accumulated depreciation | (316.6) | (315.4) |
Property, plant and equipment, net | 264.2 | 264.1 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 10.7 | 10.7 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 161.1 | 168.7 |
Machinery, equipment and other assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 360.1 | 354.5 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 48.9 | $ 45.6 |
Goodwill - Rollforward (Details) $ in Millions |
3 Months Ended |
---|---|
Apr. 01, 2022
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 3,132.0 |
Foreign currency translation | (41.5) |
Ending balance | 3,090.5 |
Specialty Products & Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 2,029.7 |
Foreign currency translation | (33.0) |
Ending balance | 1,996.7 |
Equipment & Consumables | |
Goodwill [Roll Forward] | |
Beginning balance | 1,102.3 |
Foreign currency translation | (8.5) |
Ending balance | $ 1,093.8 |
Accrued Expenses And Other Liabilities - Summary (Details) - USD ($) $ in Millions |
Apr. 01, 2022 |
Dec. 31, 2021 |
---|---|---|
Current | ||
Compensation and benefits | $ 140.8 | $ 188.9 |
Restructuring-related employee severance, benefits and other | 14.0 | 21.9 |
Pension benefits | 5.6 | 5.6 |
Taxes, income and other | 48.3 | 48.1 |
Contract liabilities | 73.3 | 60.1 |
Sales and product allowances | 63.7 | 75.4 |
Loss contingencies | 10.1 | 8.4 |
Derivative financial instruments | 0.4 | 19.6 |
Other | 185.2 | 134.3 |
Total | 541.4 | 562.3 |
Noncurrent | ||
Compensation and benefits | 19.6 | 17.9 |
Restructuring-related employee severance, benefits and other | 0.0 | 0.0 |
Pension benefits | 40.1 | 41.7 |
Taxes, income and other | 184.4 | 201.4 |
Contract liabilities | 5.7 | 5.1 |
Sales and product allowances | 1.5 | 1.2 |
Loss contingencies | 30.9 | 30.3 |
Derivative financial instruments | 0.0 | 0.0 |
Other | 6.0 | 6.6 |
Total | $ 288.2 | $ 304.2 |
Hedging Transactions And Derivative Financial Instruments - Narrative (Details) |
Apr. 01, 2022
USD ($)
|
Apr. 01, 2022
EUR (€)
|
Dec. 31, 2021
USD ($)
|
Sep. 20, 2019
USD ($)
|
Sep. 20, 2019
EUR (€)
|
---|---|---|---|---|---|
Derivative [Line Items] | |||||
Total debt | $ 1,384,700,000 | $ 1,315,800,000 | |||
US term loan due 2024 | |||||
Derivative [Line Items] | |||||
Total debt | 647,600,000 | 647,300,000 | $ 650,000,000.0 | ||
Term loan | $ 650,000,000.0 | ||||
Euro term loan due 2024 | |||||
Derivative [Line Items] | |||||
Total debt | $ 229,300,000 | $ 236,100,000 | |||
Term loan | € | € 208,000,000.0 | € 600,000,000.0 |
Hedging Transactions And Derivative Financial Instruments - Summary of Notional Values and Pretax Impact in Fair Values of Net Investment Hedges (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 01, 2022 |
Apr. 02, 2021 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | $ 1,129.7 | $ 1,344.7 |
Gain Recognized in OCI | 26.5 | 43.6 |
Net investment hedging | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 250.0 | 450.0 |
Gain Recognized in OCI | 1.8 | 1.8 |
Net investment hedging | Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 650.0 | 650.0 |
Gain Recognized in OCI | 17.9 | 25.6 |
Net investment hedging | Foreign currency denominated debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Amount | 229.7 | 244.7 |
Gain Recognized in OCI | $ 6.8 | $ 16.2 |
Hedging Transactions And Derivative Financial Instruments - Derivative and Nonderivative Debt Instruments (Details) - USD ($) $ in Millions |
Apr. 01, 2022 |
Dec. 31, 2021 |
---|---|---|
Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 0.9 | $ 0.0 |
Accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0.4 | 19.6 |
Long-term debt | ||
Derivatives, Fair Value [Line Items] | ||
Nonderivative hedging instruments | $ 229.7 | $ 236.5 |
Warranty - Narrative (Details) |
3 Months Ended |
---|---|
Apr. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product warranty period | 90 days |
Warranty - Warranty Accrual (Details) $ in Millions |
3 Months Ended |
---|---|
Apr. 01, 2022
USD ($)
| |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |
Beginning balance | $ 9.4 |
Accruals for warranties issued during the year | 4.2 |
Settlements made | (3.7) |
Effect of foreign currency translation | (0.1) |
Ending balance | $ 9.8 |
Litigation And Contingencies - Narrative (Details) - USD ($) $ in Millions |
Apr. 01, 2022 |
Dec. 31, 2021 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for legal matters | $ 41.0 | $ 38.7 |
Debt And Credit Facilities - Components Of Debt (Details) |
Apr. 01, 2022
USD ($)
|
Apr. 01, 2022
EUR (€)
|
Dec. 31, 2021
USD ($)
|
May 21, 2020
USD ($)
|
Sep. 20, 2019
USD ($)
|
Sep. 20, 2019
EUR (€)
|
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Total debt | $ 1,384,700,000 | $ 1,315,800,000 | ||||
Less: current portion | (507,800,000) | (432,400,000) | ||||
Long-term debt | 876,900,000 | 883,400,000 | ||||
US term loan due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Term loan | $ 650,000,000.0 | |||||
Debt issuance costs | 2,400,000 | 2,700,000 | ||||
Total debt | 647,600,000 | 647,300,000 | $ 650,000,000.0 | |||
Euro term loan due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Term loan | € | € 208,000,000.0 | € 600,000,000.0 | ||||
Debt issuance costs | 400,000 | 500,000 | ||||
Total debt | 229,300,000 | 236,100,000 | ||||
Other | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | 0 | 300,000 | ||||
Convertible Debt | Convertible senior notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Term loan | $ 517,500,000 | |||||
Debt issuance costs | 9,700,000 | 8,900,000 | ||||
Unamortized discount | 0.0 | 76,500,000 | ||||
Total debt | $ 507,800,000 | $ 432,100,000 |
Debt And Credit Facilities - Interest Expense (Details) - Convertible Debt - 2.375% convertible senior notes - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 01, 2022 |
Apr. 02, 2021 |
|
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 3.1 | $ 3.1 |
Amortization of debt issuance costs | 0.7 | 0.5 |
Amortization of debt discount | 0.0 | 4.6 |
Total interest expense | $ 3.8 | $ 8.2 |
Revenue - Remaining Performance Obligations (Details) $ in Millions |
Apr. 01, 2022
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 35.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 12 months |
Revenue - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Apr. 01, 2022 |
Apr. 02, 2021 |
Dec. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | |||
Contract liability | $ 79.0 | $ 65.2 | |
Revenue recognized | $ 24.8 | $ 18.9 | |
Revenue Benchmark | Customer Concentration Risk | Largest customer | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 10.00% | 13.00% |
Restructuring Activities And Related Impairments - Schedule Of Restructuring And Related Costs (Details) $ in Millions |
3 Months Ended |
---|---|
Apr. 01, 2022
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of year | $ 21.9 |
Costs incurred | (0.5) |
Paid/settled | (7.4) |
Balance at end of year | 14.0 |
Employee Severance and Related | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of year | 21.4 |
Costs incurred | (0.8) |
Paid/settled | (7.0) |
Balance at end of year | 13.6 |
Facility Exit and Related | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of year | 0.5 |
Costs incurred | 0.3 |
Paid/settled | (0.4) |
Balance at end of year | $ 0.4 |
Restructuring Activities And Related Impairments - Schedule Of Restructuring And Other Related Charges By Segment (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 01, 2022 |
Apr. 02, 2021 |
|
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | $ 3.7 | $ 7.8 |
Specialty Products & Technologies | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | 4.0 | 3.4 |
Equipment & Consumables | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | (0.9) | 1.9 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | $ 0.6 | $ 2.5 |
Restructuring Activities And Related Impairments - Schedule Of Restructuring Reserve By Type Of Cost (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 01, 2022 |
Apr. 02, 2021 |
|
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | $ 3.7 | $ 7.8 |
Cost of sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | (0.3) | 2.9 |
Selling, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred | $ 4.0 | $ 4.9 |
Income Taxes - Narrative (Details) |
3 Months Ended | |
---|---|---|
Apr. 01, 2022 |
Apr. 02, 2021 |
|
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 18.00% | 20.20% |
Earnings Per Share - Narrative (Details) - $ / shares |
Apr. 01, 2022 |
Dec. 31, 2021 |
May 21, 2020 |
---|---|---|---|
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Conversion price (in USD per share) | $ 21.01 | $ 21.01 | |
2.375% convertible senior notes | Convertible Debt | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Conversion price (in USD per share) | $ 21.01 | ||
Dilution threshold (in USD per share) | $ 23.79 |
Earnings Per Share - Securities Not Included in the Computation of Diluted Loss Income per Share (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Apr. 01, 2022 |
Apr. 02, 2021 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted (loss) income per share (in shares) | 0.6 | 0.6 |
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 (in shares) | 0.6 | 0.6 |
Segment Information - Narrative (Details) |
3 Months Ended |
---|---|
Apr. 01, 2022
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments (in segments) | 2 |
Number of operating segments (in segments) | 2 |
Subsequent Events (Details) $ in Millions |
Apr. 20, 2022
USD ($)
|
---|---|
Subsequent Event | Carestream Dental Technology | |
Subsequent Event [Line Items] | |
Consideration transferred | $ 582.5 |