Discontinued Operations

12 Months Ended

Dec. 31, 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 in Russia, China and Brazil was not executed and closed until 2022 (the “Deferred Local Closings”). 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.

The results of the Divestiture are presented as discontinued operations for the years ended December 31, 2022 and 2021 in the accompanying Consolidated Financial Statements, with the exception of the Consolidated Statements of Cash Flows which include the financial results of the KaVo Treatment Unit and Instrument Business. As all Deferred Local Closings were completed as of December 31, 2022, there are no assets held for sale as of December 31, 2022 or any discontinued operations reported for the year ended December 31, 2023.

The operating results of the Divestiture are reflected in the Consolidated Statements of Operations within income from discontinued operations, net of tax as follows ($ in millions):

	Year Ended December 31,
	2022		2021
Sales	$	11.7	$	413.5
Cost of sales	9.1		234.6
Gross profit	2.6		178.9
Operating expenses:
Selling, general and administrative	3.2		75.6
Research and development	—		16.1
Operating (loss) income	(0.6)		87.2
Income tax expense	—		21.9
(Loss) income from discontinued operations	(0.6)		65.3
Gain on sale of discontinued operations, net of tax	5.7		11.7
Net income from discontinued operations	$	5.1	$	77.0

For the year ended December 31, 2021, the amounts represent activity for the entire Divestiture, while amounts for the year ended December 31, 2022, represent activity for the remaining deferred local closing countries.

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

	Year Ended December 31
	2021
Cash flows from operating activities
Depreciation and amortization1	$	5.8
Cash flows from investing activities:
Capital expenditures	$	6.7
1 Depreciation and amortization were no longer recognized once the business was classified as discontinued operations as of August 27, 2021.