Discontinued Operations

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

On December 31, 2021, the Company sold substantially all of the KaVo Treatment Unit and Instrument 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. However, the transfer of assets for Deferred Local Closing countries was not executed and closed until 2022. As of December 31, 2022, all Deferred Local Closings were completed and the Company received total net cash consideration of $386.4 million in accordance with the terms of the Purchase Agreement.

For the six months ended July 1, 2022, the Company recognized an earnout payment of $30.0 million. As all Deferred Local Closings were completed as of December 31, 2022, there are no discontinued operations reported for the three and six months ended June 30, 2023.

The operating results of the Divestiture for the three and six months ended July 1, 2022 are reflected in the Condensed Consolidated Statements of Operations within income from discontinued operations, net of tax as follows ($ in millions):

	Three Months Ended		Six Months Ended
	July 1, 2022		July 1, 2022
Sales	$	2.0	$	8.9
Cost of sales	1.1		7.0
Gross profit	0.9		1.9
Operating expenses:
Selling, general and administrative	1.0		2.1
Research and development	—		—
Operating loss	(0.1)		(0.2)
Income tax expense	—		—
Loss from discontinued operations	(0.1)		(0.2)
Gain on sale of discontinued operations, net of tax	2.7		7.3
Net income from discontinued operations	$	2.6	$	7.1