Delaware | 39-1434669 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
221 West Philadelphia Street, York, PA | 17401-2991 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Page | ||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 1,022.0 | $ | 698.0 | $ | 1,794.6 | $ | 1,354.3 | |||||||
Cost of products sold | 495.1 | 298.3 | 848.8 | 581.3 | |||||||||||
Gross profit | 526.9 | 399.7 | 945.8 | 773.0 | |||||||||||
Selling, general and administrative expenses | 402.1 | 275.0 | 744.2 | 545.2 | |||||||||||
Restructuring and other costs | 3.6 | 38.9 | 7.7 | 44.3 | |||||||||||
Operating income | 121.2 | 85.8 | 193.9 | 183.5 | |||||||||||
Other income and expenses: | |||||||||||||||
Interest expense | 9.3 | 9.8 | 18.5 | 20.5 | |||||||||||
Interest income | (0.4 | ) | (0.7 | ) | (0.9 | ) | (1.4 | ) | |||||||
Other expense (income), net | (11.5 | ) | (0.3 | ) | (14.9 | ) | 0.2 | ||||||||
Income before income taxes | 123.8 | 77.0 | 191.2 | 164.2 | |||||||||||
Provision (benefit) for income taxes | 17.9 | 24.8 | (40.0 | ) | 43.6 | ||||||||||
Equity in net loss of unconsolidated affiliated company | — | (8.1 | ) | — | (12.6 | ) | |||||||||
Net income | 105.9 | 44.1 | 231.2 | 108.0 | |||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.5 | — | 0.8 | (0.1 | ) | ||||||||||
Net income attributable to Dentsply Sirona | $ | 105.4 | $ | 44.1 | $ | 230.4 | $ | 108.1 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.45 | $ | 0.32 | $ | 1.13 | $ | 0.77 | |||||||
Diluted | $ | 0.44 | $ | 0.31 | $ | 1.11 | $ | 0.76 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 233.7 | 139.8 | 204.2 | 140.1 | |||||||||||
Diluted | 237.4 | 142.3 | 207.9 | 142.5 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 105.9 | $ | 44.1 | $ | 231.2 | $ | 108.0 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | (92.8 | ) | 76.0 | 94.0 | (112.9 | ) | |||||||||
Net gain (loss) on derivative financial instruments | 8.5 | (16.8 | ) | (16.3 | ) | 7.9 | |||||||||
Net unrealized holding gain on available-for-sale securities | — | 39.4 | — | 70.3 | |||||||||||
Pension liability adjustments | 0.9 | — | 1.8 | 1.4 | |||||||||||
Total other comprehensive income (loss), net of tax | (83.4 | ) | 98.6 | 79.5 | (33.3 | ) | |||||||||
Total comprehensive income | 22.5 | 142.7 | 310.7 | 74.7 | |||||||||||
Less: Comprehensive income attributable | |||||||||||||||
to noncontrolling interests | 0.5 | — | 0.9 | 0.5 | |||||||||||
Comprehensive income attributable to | |||||||||||||||
Dentsply Sirona | $ | 22.0 | $ | 142.7 | $ | 309.8 | $ | 74.2 | |||||||
June 30, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 311.6 | $ | 284.6 | |||
Accounts and notes receivables-trade, net | 637.2 | 399.9 | |||||
Inventories, net | 523.1 | 340.4 | |||||
Prepaid expenses and other current assets, net | 266.5 | 171.8 | |||||
Total Current Assets | 1,738.4 | 1,196.7 | |||||
Property, plant and equipment, net | 794.1 | 558.8 | |||||
Identifiable intangible assets, net | 3,028.5 | 600.7 | |||||
Goodwill, net | 5,794.7 | 1,987.6 | |||||
Other noncurrent assets, net | 95.7 | 59.1 | |||||
Total Assets | $ | 11,451.4 | $ | 4,402.9 | |||
Liabilities and Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 227.1 | $ | 133.6 | |||
Accrued liabilities | 466.1 | 310.1 | |||||
Income taxes payable | 19.5 | 20.2 | |||||
Notes payable and current portion of long-term debt | 9.8 | 12.1 | |||||
Total Current Liabilities | 722.5 | 476.0 | |||||
Long-term debt | 1,171.8 | 1,141.0 | |||||
Deferred income taxes | 849.8 | 160.3 | |||||
Other noncurrent liabilities | 391.7 | 286.2 | |||||
Total Liabilities | 3,135.8 | 2,063.5 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Preferred stock, $1.00 par value; .25 million shares authorized; no shares issued | — | — | |||||
Common stock, $.01 par value; | 2.6 | 1.6 | |||||
400.0 million and 200.0 million shares authorized at June 30, 2016 and December 31, 2015, respectively | |||||||
264.5 million and 162.8 million shares issued at June 30, 2016 and December 31, 2015, respectively | |||||||
233.0 million and 140.1 million shares outstanding at June 30, 2016 and December 31, 2015, respectively. | |||||||
Capital in excess of par value | 6,498.8 | 237.8 | |||||
Retained earnings | 3,784.7 | 3,591.0 | |||||
Accumulated other comprehensive loss | (514.6 | ) | (594.0 | ) | |||
Treasury stock, at cost, 31.5 million and 22.7 million shares at June 30, 2016 and December 31, 2015, respectively | (1,460.0 | ) | (898.4 | ) | |||
Total Dentsply Sirona Equity | 8,311.5 | 2,338.0 | |||||
Noncontrolling interests | 4.1 | 1.4 | |||||
Total Equity | 8,315.6 | 2,339.4 | |||||
Total Liabilities and Equity | $ | 11,451.4 | $ | 4,402.9 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 231.2 | $ | 108.0 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 55.1 | 38.8 | |||||
Amortization | 65.6 | 21.8 | |||||
Amortization of deferred financing costs | 2.1 | 2.2 | |||||
Deferred income taxes | (70.5 | ) | 28.7 | ||||
Share-based compensation expense | 17.4 | 11.8 | |||||
Restructuring and other costs - non-cash | 3.3 | 45.8 | |||||
Excess tax benefits from share-based compensation | (8.8 | ) | (8.8 | ) | |||
Equity in net loss from unconsolidated affiliates | — | 12.6 | |||||
Other non-cash income | (31.5 | ) | (13.6 | ) | |||
Loss on disposal of property, plant and equipment | 0.5 | 0.5 | |||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts and notes receivable-trade, net | (82.8 | ) | (40.0 | ) | |||
Inventories, net | 44.7 | 4.1 | |||||
Prepaid expenses and other current assets, net | (8.5 | ) | 1.8 | ||||
Other noncurrent assets, net | 1.6 | 0.7 | |||||
Accounts payable | 13.9 | 4.9 | |||||
Accrued liabilities | (11.1 | ) | (17.7 | ) | |||
Income taxes | (41.5 | ) | (0.1 | ) | |||
Other noncurrent liabilities | 7.4 | 9.7 | |||||
Net cash provided by operating activities | 188.1 | 211.2 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (47.8 | ) | (33.5 | ) | |||
Cash assumed in Sirona merger | 522.3 | — | |||||
Cash paid for acquisitions of businesses, net of cash acquired | (0.4 | ) | (3.3 | ) | |||
Cash received from sale of business or product line | 2.4 | — | |||||
Cash received on derivatives contracts | 10.7 | 14.3 | |||||
Cash paid on derivatives contracts | (3.6 | ) | (0.8 | ) | |||
Purchase of Company-owned life insurance policies | (1.7 | ) | — | ||||
Proceeds from sale of property, plant and equipment, net | 4.4 | 0.3 | |||||
Net cash provided by (used in) investing activities | 486.3 | (23.0 | ) | ||||
Cash flows from financing activities: | |||||||
(Decrease) increase in short-term borrowings | (3.6 | ) | 33.4 | ||||
Cash paid for treasury stock | (600.0 | ) | (99.0 | ) | |||
Cash dividends paid | (28.6 | ) | (19.6 | ) | |||
Cash paid for acquisition of noncontrolling interests of consolidated subsidiary | — | (80.5 | ) | ||||
Proceeds from long-term borrowings | 79.9 | — | |||||
Repayments on long-term borrowings | (127.5 | ) | (100.2 | ) | |||
Proceeds from exercised stock options | 20.4 | 18.6 | |||||
Excess tax benefits from share-based compensation | 8.8 | 8.8 | |||||
Net cash used in financing activities | (650.6 | ) | (238.5 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 3.2 | (4.8 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 27.0 | (55.1 | ) | ||||
Cash and cash equivalents at beginning of period | 284.6 | 151.6 | |||||
Cash and cash equivalents at end of period | $ | 311.6 | $ | 96.5 | |||
Schedule of non-cash investing activities: | |||||||
Merger financed by common stock | $ | 6,256.2 | $ | — |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Dentsply Sirona Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 1.6 | $ | 221.7 | $ | 3,380.7 | $ | (441.1 | ) | $ | (841.6 | ) | $ | 2,321.3 | $ | 0.9 | $ | 2,322.2 | |||||||||||||
Net income | — | — | 108.1 | — | — | 108.1 | (0.1 | ) | 108.0 | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | (33.9 | ) | — | (33.9 | ) | 0.5 | (33.4 | ) | ||||||||||||||||||||
Exercise of stock options | — | (4.7 | ) | — | — | 23.3 | 18.6 | — | 18.6 | ||||||||||||||||||||||
Tax benefit from stock options exercised | — | 8.8 | — | — | — | 8.8 | — | 8.8 | |||||||||||||||||||||||
Share based compensation expense | — | 11.8 | — | — | — | 11.8 | — | 11.8 | |||||||||||||||||||||||
Funding of Employee Stock Ownership Plan | — | 1.1 | — | — | 3.6 | 4.7 | — | 4.7 | |||||||||||||||||||||||
Treasury shares purchased | — | — | — | — | (99.0 | ) | (99.0 | ) | — | (99.0 | ) | ||||||||||||||||||||
RSU distributions | — | (13.9 | ) | — | — | 8.6 | (5.3 | ) | — | (5.3 | ) | ||||||||||||||||||||
RSU dividends | — | 0.2 | (0.2 | ) | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends ($0.145 per share) | — | — | (20.2 | ) | — | — | (20.2 | ) | — | (20.2 | ) | ||||||||||||||||||||
Balance at June 30, 2015 | $ | 1.6 | $ | 225.0 | $ | 3,468.4 | $ | (475.0 | ) | $ | (905.1 | ) | $ | 2,314.9 | $ | 1.3 | $ | 2,316.2 |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Dentsply Sirona Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
Balance at December 31, 2015 | $ | 1.6 | $ | 237.8 | $ | 3,591.0 | $ | (594.0 | ) | $ | (898.4 | ) | $ | 2,338.0 | $ | 1.4 | $ | 2,339.4 | |||||||||||||
Net income | — | — | 230.4 | — | — | 230.4 | 0.8 | 231.2 | |||||||||||||||||||||||
Other comprehensive income | — | — | — | 79.4 | — | 79.4 | 0.1 | 79.5 | |||||||||||||||||||||||
Common stock issuance related to Sirona merger | 1.0 | 6,253.4 | — | — | — | 6,254.4 | 1.8 | 6,256.2 | |||||||||||||||||||||||
Exercise of stock options | — | (4.5 | ) | — | — | 24.8 | 20.3 | — | 20.3 | ||||||||||||||||||||||
Tax benefit from stock options exercised | — | 8.8 | — | — | — | 8.8 | — | 8.8 | |||||||||||||||||||||||
Share based compensation expense | — | 17.4 | — | — | — | 17.4 | — | 17.4 | |||||||||||||||||||||||
Funding of Employee Stock Ownership Plan | — | 2.1 | — | — | 4.2 | 6.3 | — | 6.3 | |||||||||||||||||||||||
Treasury shares purchased | — | — | — | — | (600.0 | ) | (600.0 | ) | — | (600.0 | ) | ||||||||||||||||||||
RSU distributions | — | (16.5 | ) | — | — | 9.4 | (7.1 | ) | — | (7.1 | ) | ||||||||||||||||||||
RSU dividends | — | 0.3 | (0.3 | ) | — | — | — | — | — | ||||||||||||||||||||||
Cash dividends ($0.155 per share) | — | — | (36.4 | ) | — | — | (36.4 | ) | — | (36.4 | ) | ||||||||||||||||||||
Balance at June 30, 2016 | $ | 2.6 | $ | 6,498.8 | $ | 3,784.7 | $ | (514.6 | ) | $ | (1,460.0 | ) | $ | 8,311.5 | $ | 4.1 | $ | 8,315.6 |
Three Months Ended | Six Months Ended | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Stock option expense | $ | 3.4 | $ | 2.3 | $ | 5.5 | $ | 3.8 | ||||||||
RSU expense | 8.7 | 4.3 | 11.1 | 7.4 | ||||||||||||
Total stock based compensation expense | $ | 12.1 | $ | 6.6 | $ | 16.6 | $ | 11.2 | ||||||||
Total related tax benefit | $ | 2.8 | $ | 1.8 | $ | 4.1 | $ | 3.4 |
(in millions) | Foreign Currency Translation Adjustments | Gain (Loss) on Derivative Financial Instruments Designated as Cash Flow Hedges | Gain (Loss) on Derivative Financial Instruments Designated as Net Investment Hedges | Pension Liability Adjustments | Total | |||||||||||||||
Balance at December 31, 2015 | $ | (401.2 | ) | $ | (1.2 | ) | $ | (110.2 | ) | $ | (81.4 | ) | $ | (594.0 | ) | |||||
Other comprehensive income (loss) before reclassifications and tax impact | 86.0 | (4.6 | ) | (17.2 | ) | — | 64.2 | |||||||||||||
Tax benefit | 7.9 | 1.7 | 6.6 | — | 16.2 | |||||||||||||||
Other comprehensive income (loss), net of tax, before reclassifications | 93.9 | (2.9 | ) | (10.6 | ) | — | 80.4 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (2.8 | ) | — | 1.8 | (1.0 | ) | |||||||||||||
Net increase (decrease) in other comprehensive income | 93.9 | (5.7 | ) | (10.6 | ) | 1.8 | 79.4 | |||||||||||||
Balance at June 30, 2016 | $ | (307.3 | ) | $ | (6.9 | ) | $ | (120.8 | ) | $ | (79.6 | ) | $ | (514.6 | ) |
(in millions) | Foreign Currency Translation Adjustments | Gain (Loss) on Derivative Financial Instruments Designated as Cash Flow Hedges | Gain (Loss) on Derivative Financial Instruments Designated as Net Investment Hedges | Net Unrealized Holding Gain (Loss)on Available-for-Sale Securities | Pension Liability Adjustments | Total | ||||||||||||||||||
Balance at December 31, 2014 | $ | (212.5 | ) | $ | (10.8 | ) | $ | (112.7 | ) | $ | 8.5 | $ | (113.6 | ) | $ | (441.1 | ) | |||||||
Other comprehensive (loss) income before reclassifications and tax impact | (107.3 | ) | 21.0 | (3.4 | ) | 101.4 | — | 11.7 | ||||||||||||||||
Tax expense | (7.6 | ) | (2.6 | ) | 1.0 | (31.1 | ) | — | (40.3 | ) | ||||||||||||||
Other comprehensive (loss) income, net of tax, before reclassifications | (114.9 | ) | 18.4 | (2.4 | ) | 70.3 | — | (28.6 | ) | |||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | — | (8.2 | ) | — | — | 2.9 | (5.3 | ) | ||||||||||||||||
Net (decrease) increase in other comprehensive income | (114.9 | ) | 10.2 | (2.4 | ) | 70.3 | 2.9 | (33.9 | ) | |||||||||||||||
Balance at June 30, 2015 | $ | (327.4 | ) | $ | (0.6 | ) | $ | (115.1 | ) | $ | 78.8 | $ | (110.7 | ) | $ | (475.0 | ) |
(in millions) | ||||||||||
Details about AOCI Components | Amounts Reclassified from AOCI | Affected Line Item in the Consolidated Statements of Operations | ||||||||
Three Months Ended June 30, | ||||||||||
2016 | 2015 | |||||||||
Gain (loss) on derivative financial instruments: | ||||||||||
Interest rate swaps | $ | (0.9 | ) | $ | (1.1 | ) | Interest expense | |||
Foreign exchange forward contracts | 2.1 | 6.8 | Cost of products sold | |||||||
Foreign exchange forward contracts | — | 0.2 | SG&A expenses | |||||||
Commodity contracts | 0.2 | (0.1 | ) | Cost of products sold | ||||||
Net gain before tax | 1.4 | 5.8 | ||||||||
Tax impact | (0.1 | ) | (1.2 | ) | Provision (benefit) for income taxes | |||||
Net gain after tax | $ | 1.3 | $ | 4.6 | ||||||
Amortization of defined benefit pension and other postemployment benefit items: | ||||||||||
Amortization of prior service benefits | $ | 0.1 | $ | — | (a) | |||||
Amortization of net actuarial losses | (1.4 | ) | (2.0 | ) | (a) | |||||
Net loss before tax | (1.3 | ) | (2.0 | ) | ||||||
Tax impact | 0.4 | 0.6 | Provision (benefit) for income taxes | |||||||
Net loss after tax | $ | (0.9 | ) | $ | (1.4 | ) | ||||
Total reclassifications for the period | $ | 0.4 | $ | 3.2 |
(in millions) | ||||||||||
Details about AOCI Components | Amounts Reclassified from AOCI | Affected Line Item in the Consolidated Statements of Operations | ||||||||
Six Months Ended June 30, | ||||||||||
2016 | 2015 | |||||||||
Gain (loss) on derivative financial instruments: | ||||||||||
Interest rate swaps | $ | (2.0 | ) | $ | (2.0 | ) | Interest expense | |||
Foreign exchange forward contracts | 5.2 | 10.7 | Cost of products sold | |||||||
Foreign exchange forward contracts | 0.1 | 0.4 | SG&A expenses | |||||||
Commodity contracts | (0.1 | ) | (0.3 | ) | Cost of products sold | |||||
Net gain before tax | 3.2 | 8.8 | ||||||||
Tax impact | (0.4 | ) | (0.6 | ) | Provision (benefit) for income taxes | |||||
Net gain after tax | $ | 2.8 | $ | 8.2 | ||||||
Amortization of defined benefit pension and other postemployment benefit items: | ||||||||||
Amortization of prior service benefits | $ | 0.1 | $ | 0.1 | (a) | |||||
Amortization of net actuarial losses | (2.6 | ) | (4.1 | ) | (a) | |||||
Net loss before tax | (2.5 | ) | (4.0 | ) | ||||||
Tax impact | 0.7 | 1.1 | Provision (benefit) for income taxes | |||||||
Net loss after tax | $ | (1.8 | ) | $ | (2.9 | ) | ||||
Total reclassifications for the period | $ | 1.0 | $ | 5.3 |
Basic Earnings Per Common Share Computation | Three Months Ended | Six Months Ended | ||||||||||||||
(in millions, except per share amounts) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributable to Dentsply Sirona | $ | 105.4 | $ | 44.1 | $ | 230.4 | $ | 108.1 | ||||||||
Weighted average common shares outstanding | 233.7 | 139.8 | 204.2 | 140.1 | ||||||||||||
Earnings per common share - basic | $ | 0.45 | $ | 0.32 | $ | 1.13 | $ | 0.77 | ||||||||
Diluted Earnings Per Common Share Computation | ||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Net income attributable to Dentsply Sirona | $ | 105.4 | $ | 44.1 | $ | 230.4 | $ | 108.1 | ||||||||
Weighted average common shares outstanding | 233.7 | 139.8 | 204.2 | 140.1 | ||||||||||||
Incremental weighted average shares from assumed exercise of dilutive options from stock-based compensation awards | 3.7 | 2.5 | 3.7 | 2.4 | ||||||||||||
Total weighted average diluted shares outstanding | 237.4 | 142.3 | 207.9 | 142.5 | ||||||||||||
Earnings per common share - diluted | $ | 0.44 | $ | 0.31 | $ | 1.11 | $ | 0.76 |
(in millions, except per share amount)* | ||||||||
Sirona common shares outstanding at February 29, 2016 | 56.1 | |||||||
Exchange ratio | 1.8142 | |||||||
DENTSPLY common stock issued for consideration | 101.8 | |||||||
DENTSPLY common stock per share price at February 26, 2016 | $ | 60.67 | ||||||
Fair value of DENTSPLY common stock issued to Sirona shareholders | $ | 6,173.8 | ||||||
Fair value of vested portion of Sirona share-based awards outstanding - 1.5 million | ||||||||
at February 29, 2016 | 82.4 | |||||||
Total acquisition consideration | $ | 6,256.2 |
(in millions) | ||||
Cash and cash equivalents | $ | 522.3 | ||
Trade receivables | 143.0 | |||
Inventory | 220.7 | |||
Prepaid expenses and other current assets | 109.4 | |||
Property, plant and equipment | 237.1 | |||
Identifiable intangible assets | 2,435.0 | |||
Goodwill | 3,754.6 | |||
Other long-term assets | 10.9 | |||
Total assets | 7,433.0 | |||
Accounts payable | 68.0 | |||
Other current liabilities | 191.0 | |||
Debt | 57.5 | |||
Deferred income taxes | 766.9 | |||
Other long-term liabilities | 93.4 | |||
Total liabilities | 1,176.8 | |||
Total identifiable net assets | $ | 6,256.2 |
(in millions, except for useful life) | Weighted Average | |||||
Useful Life | ||||||
Amount | (in years) | |||||
Customer relationships | $ | 495.0 | 14 | |||
Developed technology and patents | 1,035.0 | 12 | ||||
Trade names and trademarks | 905.0 | Indefinite | ||||
Total | $ | 2,435.0 |
Pro forma - unaudited | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in millions, except per share amount) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 1,022.0 | $ | 1,001.8 | $ | 1,962.2 | $ | 1,905.0 | ||||||||
Net income attributable to Dentsply Sirona | $ | 141.2 | $ | 81.5 | $ | 234.9 | $ | 175.9 | ||||||||
Diluted earnings per common share | $ | 0.59 | $ | 0.33 | $ | 0.99 | $ | 0.72 |
Three Months Ended | Six Months Ended | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Dental and Healthcare Consumables | $ | 543.8 | $ | 510.9 | $ | 1,032.7 | $ | 991.0 | ||||||||
Technologies | 478.2 | 187.1 | 761.9 | 363.3 | ||||||||||||
Total net sales | $ | 1,022.0 | $ | 698.0 | $ | 1,794.6 | $ | 1,354.3 |
Three Months Ended | Six Months Ended | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Dental and Healthcare Consumables | $ | 526.7 | $ | 487.8 | $ | 997.5 | $ | 943.3 | ||||||||
Technologies | 478.0 | 186.9 | 761.7 | 362.9 | ||||||||||||
Total net sales, excluding precious metal content | 1,004.7 | 674.7 | 1,759.2 | 1,306.2 | ||||||||||||
Precious metal content of sales | 17.3 | 23.3 | 35.4 | 48.1 | ||||||||||||
Total net sales, including precious metal content | $ | 1,022.0 | $ | 698.0 | $ | 1,794.6 | $ | 1,354.3 |
Three Months Ended | Six Months Ended | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Dental and Healthcare Consumables | $ | 58.2 | $ | 55.9 | $ | 113.5 | $ | 108.0 | ||||||||
Technologies | 2.1 | 1.6 | 3.5 | 3.3 | ||||||||||||
All Other (a) | 74.0 | 67.1 | 142.7 | 132.2 | ||||||||||||
Eliminations | (134.3 | ) | (124.6 | ) | (259.7 | ) | (243.5 | ) | ||||||||
Total | $ | — | $ | — | $ | — | $ | — |
Three Months Ended | Six Months Ended | |||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Dental and Healthcare Consumables | $ | 151.7 | $ | 125.8 | $ | 282.4 | $ | 239.1 | ||||||||
Technologies | 112.1 | 21.7 | 165.9 | 42.6 | ||||||||||||
Segment adjusted operating income before income taxes and interest | 263.8 | 147.5 | 448.3 | 281.7 | ||||||||||||
Reconciling items (income) expense: | ||||||||||||||||
All Other (b) | 93.8 | 11.4 | 178.9 | 31.2 | ||||||||||||
Restructuring and other costs | 3.6 | 38.9 | 7.7 | 44.3 | ||||||||||||
Interest expense | 9.3 | 9.8 | 18.5 | 20.5 | ||||||||||||
Interest income | (0.4 | ) | (0.7 | ) | (0.9 | ) | (1.4 | ) | ||||||||
Other expense (income), net | (11.5 | ) | (0.3 | ) | (14.9 | ) | 0.2 | |||||||||
Amortization of intangible assets | 43.8 | 10.9 | 65.6 | 21.8 | ||||||||||||
Depreciation resulting from the fair value step-up of property, plant and equipment from business combinations | 1.4 | 0.5 | 2.2 | 0.9 | ||||||||||||
Income before income taxes | $ | 123.8 | $ | 77.0 | $ | 191.2 | $ | 164.2 |
(in millions) | June 30, 2016 | December 31, 2015 | ||||||
Dental and Healthcare Consumables | $ | 2,160.5 | $ | 1,776.5 | ||||
Technologies | 7,068.4 | 951.2 | ||||||
All Other (c) | 2,222.5 | 1,675.2 | ||||||
Total | $ | 11,451.4 | $ | 4,402.9 |
(in millions) | June 30, 2016 | December 31, 2015 | ||||||
Finished goods | $ | 327.5 | $ | 218.2 | ||||
Work-in-process | 76.4 | 52.3 | ||||||
Raw materials and supplies | 119.2 | 69.9 | ||||||
Inventories, net | $ | 523.1 | $ | 340.4 |
Defined Benefit Plans | Three Months Ended | Six Months Ended | ||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Service cost | $ | 3.9 | $ | 4.3 | $ | 7.7 | $ | 8.7 | ||||||||
Interest cost | 2.0 | 1.8 | 3.8 | 3.7 | ||||||||||||
Expected return on plan assets | (1.2 | ) | (1.4 | ) | (2.4 | ) | (2.8 | ) | ||||||||
Amortization of prior service credit | (0.1 | ) | — | (0.1 | ) | (0.1 | ) | |||||||||
Amortization of net actuarial loss | 1.3 | 2.0 | 2.5 | 4.0 | ||||||||||||
Net periodic benefit cost | $ | 5.9 | $ | 6.7 | $ | 11.5 | $ | 13.5 |
Other Postemployment Benefit Plans | Three Months Ended | Six Months Ended | ||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Service cost | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 0.2 | ||||||||
Interest cost | 0.1 | 0.2 | 0.3 | 0.3 | ||||||||||||
Amortization of net actuarial loss | 0.1 | — | 0.1 | 0.1 | ||||||||||||
Net periodic benefit cost | $ | 0.3 | $ | 0.3 | $ | 0.6 | $ | 0.6 |
(in millions) | Pension Benefits | Other Postemployment Benefits | ||||||
Actual contributions through June 30, 2016 | $ | 6.6 | $ | 0.1 | ||||
Projected contributions for the remainder of the year | 8.1 | 0.6 | ||||||
Total projected contributions | $ | 14.7 | $ | 0.7 |
Severance | ||||||||||||||||
(in millions) | 2014 and Prior Plans | 2015 Plans | 2016 Plans | Total | ||||||||||||
Balance at December 31, 2015 | $ | 1.5 | $ | 34.6 | $ | — | $ | 36.1 | ||||||||
Provisions | — | 2.4 | 3.1 | 5.5 | ||||||||||||
Amounts applied | (0.8 | ) | (11.1 | ) | (0.4 | ) | (12.3 | ) | ||||||||
Change in estimates | (0.1 | ) | (0.2 | ) | — | (0.3 | ) | |||||||||
Balance at June 30, 2016 | $ | 0.6 | $ | 25.7 | $ | 2.7 | $ | 29.0 |
Lease/Contract Terminations | ||||||||||||||||
(in millions) | 2014 and Prior Plans | 2015 Plans | 2016 Plans | Total | ||||||||||||
Balance at December 31, 2015 | $ | 0.7 | $ | 3.4 | $ | — | $ | 4.1 | ||||||||
Provisions | — | 0.8 | — | 0.8 | ||||||||||||
Amounts applied | (0.3 | ) | (0.5 | ) | — | (0.8 | ) | |||||||||
Change in estimates | — | (0.3 | ) | — | (0.3 | ) | ||||||||||
Balance at June 30, 2016 | $ | 0.4 | $ | 3.4 | $ | — | $ | 3.8 |
Other Restructuring Costs | ||||||||||||||||
(in millions) | 2014 and Prior Plans | 2015 Plans | 2016 Plans | Total | ||||||||||||
Balance at December 31, 2015 | $ | 0.3 | $ | 0.6 | $ | — | $ | 0.9 | ||||||||
Provisions | — | 0.7 | — | 0.7 | ||||||||||||
Amounts applied | (0.3 | ) | (0.9 | ) | — | (1.2 | ) | |||||||||
Change in estimate | — | (0.1 | ) | — | (0.1 | ) | ||||||||||
Balance at June 30, 2016 | $ | — | $ | 0.3 | $ | — | $ | 0.3 |
(in millions) | December 31, 2015 | Provisions | Amounts Applied | Change in Estimates | June 30, 2016 | |||||||||||||||
Dental and Healthcare Consumables | $ | 35.7 | $ | 4.2 | $ | (10.9 | ) | $ | (0.3 | ) | $ | 28.7 | ||||||||
Technologies | 4.3 | 2.1 | (3.0 | ) | (0.1 | ) | 3.3 | |||||||||||||
All Other | 1.1 | 0.7 | (0.4 | ) | (0.3 | ) | 1.1 | |||||||||||||
Total | $ | 41.1 | $ | 7.0 | $ | (14.3 | ) | $ | (0.7 | ) | $ | 33.1 |
Aggregate Notional Amount | Aggregate Notional Amount Maturing within 12 Months | |||||||
(in millions) | ||||||||
Foreign exchange forward contracts | $ | 316.5 | $ | 240.7 | ||||
Interest rate swaps | 188.1 | 66.5 | ||||||
Commodity contracts | 0.2 | 0.2 | ||||||
Total derivative instruments designated as cash flow hedges | $ | 504.8 | $ | 307.4 |
June 30, 2016 | ||||||||||||||
Gain (Loss) in AOCI | Consolidated Statements of Operations Location | Effective Portion Reclassified from AOCI into Income (Expense) | Ineffective Portion Recognized in Income (Expense) | |||||||||||
(in millions) | ||||||||||||||
Effective Portion: | ||||||||||||||
Interest rate swaps | $ | (0.3 | ) | Interest expense | $ | (0.9 | ) | $ | — | |||||
Foreign exchange forward contracts | 1.8 | Cost of products sold | 2.1 | — | ||||||||||
Foreign exchange forward contracts | 0.1 | SG&A expenses | — | — | ||||||||||
Commodity contracts | 0.3 | Cost of products sold | 0.2 | — | ||||||||||
Ineffective Portion: | ||||||||||||||
Foreign exchange forward contracts | — | Other expense (income), net | — | (0.1 | ) | |||||||||
Total in cash flow hedging | $ | 1.9 | $ | 1.4 | $ | (0.1 | ) |
June 30, 2015 | ||||||||||||||
Gain (Loss) in AOCI | Consolidated Statements of Operations Location | Effective Portion Reclassified from AOCI into Income (Expense) | Ineffective Portion Recognized in Income (Expense) | |||||||||||
(in millions) | ||||||||||||||
Effective Portion: | ||||||||||||||
Interest rate swaps | $ | (0.1 | ) | Interest expense | $ | (1.1 | ) | $ | — | |||||
Foreign exchange forward contracts | (2.1 | ) | Cost of products sold | 6.8 | — | |||||||||
Foreign exchange forward contracts | (0.1 | ) | SG&A expenses | 0.2 | — | |||||||||
Commodity contracts | (0.1 | ) | Cost of products sold | (0.1 | ) | — | ||||||||
Ineffective Portion: | ||||||||||||||
Foreign exchange forward contracts | — | Other expense (income), net | — | (0.2 | ) | |||||||||
Total for cash flow hedging | $ | (2.4 | ) | $ | 5.8 | $ | (0.2 | ) |
June 30, 2016 | ||||||||||||||
Gain (Loss) in AOCI | Consolidated Statements of Operations Location | Effective Portion Reclassified from AOCI into Income (Expense) | Ineffective Portion Recognized in Income (Expense) | |||||||||||
(in millions) | ||||||||||||||
Effective Portion: | ||||||||||||||
Interest rate swaps | $ | (1.5 | ) | Interest expense | $ | (2.0 | ) | $ | — | |||||
Foreign exchange forward contracts | (3.1 | ) | Cost of products sold | 5.2 | — | |||||||||
Foreign exchange forward contracts | (0.2 | ) | SG&A expenses | 0.1 | — | |||||||||
Commodity contracts | 0.2 | Cost of products sold | (0.1 | ) | — | |||||||||
Ineffective Portion: | ||||||||||||||
Foreign exchange forward contracts | — | Other expense (income), net | — | (0.1 | ) | |||||||||
Total in cash flow hedging | $ | (4.6 | ) | $ | 3.2 | $ | (0.1 | ) |
June 30, 2015 | ||||||||||||||
Gain (Loss) in AOCI | Consolidated Statements of Operations Location | Effective Portion Reclassified from AOCI into Income (Expense) | Ineffective Portion Recognized in Income (Expense) | |||||||||||
(in millions) | ||||||||||||||
Effective Portion: | ||||||||||||||
Interest rate swaps | $ | (1.2 | ) | Interest expense | $ | (2.0 | ) | $ | — | |||||
Foreign exchange forward contracts | 22.0 | Cost of products sold | 10.7 | — | ||||||||||
Foreign exchange forward contracts | 0.3 | SG&A expenses | 0.4 | — | ||||||||||
Commodity contracts | (0.1 | ) | Cost of products sold | (0.3 | ) | — | ||||||||
Ineffective Portion: | ||||||||||||||
Foreign exchange forward contracts | — | Other expense (income), net | — | 0.2 | ||||||||||
Total for cash flow hedging | $ | 21.0 | $ | 8.8 | $ | 0.2 |
Aggregate Notional Amount | Aggregate Notional Amount Maturing within 12 Months | |||||||
(in millions) | ||||||||
Foreign exchange forward contracts | $ | 559.3 | $ | 526.3 |
June 30, 2016 | ||||||||||
Gain (Loss) in AOCI | Consolidated Statements of Operations Location | Recognized in Income (Expense) | ||||||||
(in millions) | ||||||||||
Effective Portion: | ||||||||||
Foreign exchange forward contracts | $ | 13.2 | Other expense (income), net | $ | 2.2 | |||||
Total for net investment hedging | $ | 13.2 | $ | 2.2 |
June 30, 2015 | ||||||||||
Gain (Loss) in AOCI | Consolidated Statements of Operations Location | Recognized in Income (Expense) | ||||||||
(in millions) | ||||||||||
Effective Portion: | ||||||||||
Foreign exchange forward contracts | $ | (15.8 | ) | Other expense (income), net | $ | 1.2 | ||||
Total for net investment hedging | $ | (15.8 | ) | $ | 1.2 |
June 30, 2016 | ||||||||||
Gain (Loss) in AOCI | Consolidated Statements of Operations Location | Recognized in Income (Expense) | ||||||||
(in millions) | ||||||||||
Effective Portion: | ||||||||||
Foreign exchange forward contracts | $ | (17.2 | ) | Other expense (income), net | $ | 4.7 | ||||
Total for net investment hedging | $ | (17.2 | ) | $ | 4.7 |
June 30, 2015 | ||||||||||
Gain (Loss) in AOCI | Consolidated Statements of Operations Location | Recognized in Income (Expense) | ||||||||
(in millions) | ||||||||||
Effective Portion: | ||||||||||
Foreign exchange forward contracts | $ | (3.3 | ) | Other expense (income), net | $ | 0.9 | ||||
Total for net investment hedging | $ | (3.3 | ) | $ | 0.9 |
Consolidated Statements of Operations Location | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||
Interest rate swaps | Interest expense | $ | — | $ | — | $ | — | $ | 0.2 |
Aggregate Notional Amount | Aggregate Notional Amount Maturing within 12 Months | |||||||
(in millions) | ||||||||
Foreign exchange forward contracts | $ | 780.2 | $ | 614.5 | ||||
Interest rate swaps | 1.4 | 0.8 | ||||||
Total for instruments not designated as hedges | $ | 781.6 | $ | 615.3 |
Consolidated Statements of Operations Location | Gain (Loss) Recognized | |||||||||
Three Months Ended June 30, | ||||||||||
(in millions) | 2016 | 2015 | ||||||||
Foreign exchange forward contracts (a) | Other expense (income), net | $ | 9.0 | $ | (0.8 | ) | ||||
DIO equity option contracts | Other expense (income), net | — | 0.1 | |||||||
Cross currency basis swaps (a) | Other expense (income), net | — | (0.6 | ) | ||||||
Total for instruments not designated as hedges | $ | 9.0 | $ | (1.3 | ) |
Consolidated Statements of Operations Location | Gain (Loss) Recognized | |||||||||
Six Months Ended June 30, | ||||||||||
(in millions) | 2016 | 2015 | ||||||||
Foreign exchange forward contracts (a) | Other expense (income), net | $ | (7.4 | ) | $ | 7.8 | ||||
DIO equity option contracts | Other expense (income), net | — | 0.1 | |||||||
Cross currency basis swaps (a) | Other expense (income), net | — | (1.8 | ) | ||||||
Total for instruments not designated as hedges | $ | (7.4 | ) | $ | 6.1 |
June 30, 2016 | ||||||||||||||||
(in millions) | Prepaid Expenses and Other Current Assets, Net | Other Noncurrent Assets, Net | Accrued Liabilities | Other Noncurrent Liabilities | ||||||||||||
Designated as Hedges | ||||||||||||||||
Foreign exchange forward contracts | $ | 9.4 | $ | 1.2 | $ | 11.8 | $ | 0.4 | ||||||||
Interest rate swaps | — | — | 0.5 | 1.2 | ||||||||||||
Total | $ | 9.4 | $ | 1.2 | $ | 12.3 | $ | 1.6 | ||||||||
Not Designated as Hedges | ||||||||||||||||
Foreign exchange forward contracts | $ | 8.0 | $ | 3.7 | $ | 2.6 | $ | — | ||||||||
Total | $ | 8.0 | $ | 3.7 | $ | 2.6 | $ | — |
December 31, 2015 | ||||||||||||||||
(in millions) | Prepaid Expenses and Other Current Assets, Net | Other Noncurrent Assets, Net | Accrued Liabilities | Other Noncurrent Liabilities | ||||||||||||
Designated as Hedges | ||||||||||||||||
Foreign exchange forward contracts | $ | 23.0 | $ | 7.9 | $ | 6.9 | $ | 0.4 | ||||||||
Commodity contracts | — | — | 0.1 | — | ||||||||||||
Interest rate swaps | 0.1 | — | 1.0 | 0.2 | ||||||||||||
Total | $ | 23.1 | $ | 7.9 | $ | 8.0 | $ | 0.6 | ||||||||
Not Designated as Hedges | ||||||||||||||||
Foreign exchange forward contracts | $ | 5.0 | $ | — | $ | 3.0 | $ | — | ||||||||
Total | $ | 5.0 | $ | — | $ | 3.0 | $ | — |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amount Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received/Pledged | Net Amount | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 22.3 | $ | — | $ | 22.3 | $ | (6.8 | ) | $ | — | $ | 15.5 | |||||||||||
Total Assets | $ | 22.3 | $ | — | $ | 22.3 | $ | (6.8 | ) | $ | — | $ | 15.5 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amount Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received/Pledged | Net Amount | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 14.8 | $ | — | $ | 14.8 | $ | (6.0 | ) | $ | — | $ | 8.8 | |||||||||||
Interest rate swaps | 1.7 | — | 1.7 | (0.8 | ) | — | 0.9 | |||||||||||||||||
Total Liabilities | $ | 16.5 | $ | — | $ | 16.5 | $ | (6.8 | ) | $ | — | $ | 9.7 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amount Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received/Pledged | Net Amount | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 35.9 | $ | — | $ | 35.9 | $ | (7.4 | ) | $ | — | $ | 28.5 | |||||||||||
Interest rate swaps | 0.1 | — | 0.1 | — | — | 0.1 | ||||||||||||||||||
Total Assets | $ | 36.0 | $ | — | $ | 36.0 | $ | (7.4 | ) | $ | — | $ | 28.6 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
(in millions) | Gross Amounts Recognized | Gross Amount Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received/Pledged | Net Amount | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 10.3 | $ | — | $ | 10.3 | $ | (6.3 | ) | $ | — | $ | 4.0 | |||||||||||
Commodity contracts | 0.1 | — | 0.1 | — | — | 0.1 | ||||||||||||||||||
Interest rate swaps | 1.2 | — | 1.2 | (1.1 | ) | — | 0.1 | |||||||||||||||||
Total Liabilities | $ | 11.6 | $ | — | $ | 11.6 | $ | (7.4 | ) | $ | — | $ | 4.2 |
June 30, 2016 | ||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets | ||||||||||||||||
Foreign exchange forward contracts | 22.3 | — | 22.3 | — | ||||||||||||
Total assets | $ | 22.3 | $ | — | $ | 22.3 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Interest rate swaps | $ | 1.7 | $ | — | $ | 1.7 | $ | — | ||||||||
Foreign exchange forward contracts | 14.8 | — | 14.8 | — | ||||||||||||
Contingent considerations on acquisitions | 7.5 | — | — | 7.5 | ||||||||||||
Total liabilities | $ | 24.0 | $ | — | $ | 16.5 | $ | 7.5 |
December 31, 2015 | ||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets | ||||||||||||||||
Interest rate swaps | $ | 0.1 | $ | — | $ | 0.1 | $ | — | ||||||||
Foreign exchange forward contracts | 35.9 | — | 35.9 | — | ||||||||||||
Total assets | $ | 36.0 | $ | — | $ | 36.0 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Interest rate swaps | $ | 1.2 | $ | — | $ | 1.2 | $ | — | ||||||||
Commodity contracts | 0.1 | — | 0.1 | — | ||||||||||||
Foreign exchange forward contracts | 10.3 | — | 10.3 | — | ||||||||||||
Long-term debt | 45.1 | — | 45.1 | — | ||||||||||||
Total liabilities | $ | 56.7 | $ | — | $ | 56.7 | $ | — |
(in millions) | ||||
Balance, February 29, 2016 | $ | 7.6 | ||
Unrealized gain: | ||||
Reported in Other expense (income), net | 0.1 | |||
Effect of exchange rate changes | (0.2 | ) | ||
Balance at June 30, 2016 | $ | 7.5 |
(in millions) | Dental and Healthcare Consumables | Technologies | Total | |||||||||
Balance at December 31, 2015 | $ | 956.6 | $ | 1,031.0 | $ | 1,987.6 | ||||||
Merger related additions | 112.6 | 3,642.0 | 3,754.6 | |||||||||
Adjustments of provisional amounts on prior acquisitions | 1.6 | — | 1.6 | |||||||||
Effects of exchange rate changes | 19.0 | 31.9 | 50.9 | |||||||||
Balance at June 30, 2016 | $ | 1,089.8 | $ | 4,704.9 | $ | 5,794.7 |
June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Patents and developed technology | $ | 1,227.2 | $ | (131.0 | ) | $ | 1,096.2 | $ | 164.8 | $ | (95.0 | ) | $ | 69.8 | ||||||||||
Trademarks | 68.5 | (38.4 | ) | 30.1 | 67.0 | (36.0 | ) | 31.0 | ||||||||||||||||
Licensing agreements | 33.9 | (26.0 | ) | 7.9 | 33.7 | (24.9 | ) | 8.8 | ||||||||||||||||
Customer relationships | 952.6 | (154.1 | ) | 798.5 | 437.7 | (125.4 | ) | 312.3 | ||||||||||||||||
Total definite-lived | $ | 2,282.2 | $ | (349.5 | ) | $ | 1,932.7 | $ | 703.2 | $ | (281.3 | ) | $ | 421.9 | ||||||||||
Indefinite-lived Trademarks and In-process R&D | $ | 1,095.8 | $ | — | $ | 1,095.8 | $ | 178.8 | $ | — | $ | 178.8 | ||||||||||||
Total identifiable intangible assets | $ | 3,378.0 | $ | (349.5 | ) | $ | 3,028.5 | $ | 882.0 | $ | (281.3 | ) | $ | 600.7 |
• | For the three months ended June 30, 2016, the Company reported a sales increase of 46.4%, which primarily reflects the impact of consolidating three months of Sirona’s revenues. For the three month period ended June 30, 2016, sales of our combined businesses grew 3.4% on a constant currency basis. This includes a benefit of 1.5% from net acquisitions and was unfavorably impacted by discontinued products by approximately 50 basis points, which leads to internal growth of 2.4%. |
• | On a geographic basis, the combined businesses generated constant currency sales growth of 3.8% in the United States, negative 0.4% in Europe and 8.6% in the Rest of World region for the three month period ended June 30, 2016. In the prior year period, sales within the Technologies segment, particularly in Europe, reflect the strong performance related to the biennial International Dental show. |
• | Second quarter 2016 earnings per diluted share of $0.44 increased 42% from $0.31 in the second quarter of 2015, which largely reflects the impact of consolidating three months of Sirona’s results, partially offset by the higher weighted average common shares outstanding and costs associated with the merger. On an adjusted basis (a non-US GAAP measure), second quarter 2016 earnings per diluted share of $0.76 grew 4% from $0.73, also reflecting the impact of consolidating three months of Sirona’s results, offset by the increase in common shares outstanding from the merger. |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Net sales | $ | 1,022.0 | $ | 698.0 | $ | 324.0 | 46.4 | % | |||||||
Less: precious metal content of sales | 17.3 | 23.3 | (6.0 | ) | (25.8 | %) | |||||||||
Net sales, excluding precious metal content | $ | 1,004.7 | $ | 674.7 | $ | 330.0 | 48.9 | % |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Net sales | $ | 1,022.0 | $ | 698.0 | $ | 324.0 | 46.4 | % | |||||||
Less: precious metal content of sales | 17.3 | 23.3 | (6.0 | ) | (25.8 | %) | |||||||||
Net sales, excluding precious metal content | 1,004.7 | 674.7 | 330.0 | 48.9 | % | ||||||||||
Sirona net sales (a) | — | 306.1 | (306.1 | ) | NM | ||||||||||
Merger related adjustments (b) | 1.6 | — | 1.6 | NM | |||||||||||
Elimination of intercompany net sales | — | (0.7 | ) | 0.7 | NM | ||||||||||
Non-US GAAP combined business, net sales, excluding precious metal content | $ | 1,006.3 | $ | 980.1 | $ | 26.2 | 2.7 | % |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
United States | $ | 365.9 | $ | 250.1 | $ | 115.8 | 46.3 | % | |||||||
Europe | 382.2 | 279.0 | 103.2 | 37.0 | % | ||||||||||
Rest of World | 256.6 | 145.6 | 111.0 | 76.2 | % |
Three Months Ended | ||||||||||||||||
June 30, 2016 | ||||||||||||||||
(in millions) | United States | Europe | Rest of World | Total | ||||||||||||
Net sales | $ | 367.2 | $ | 392.4 | $ | 262.4 | $ | 1,022.0 | ||||||||
Less: precious metal content of sales | 1.3 | 10.2 | 5.8 | 17.3 | ||||||||||||
Net sales, excluding precious metal content | 365.9 | 382.2 | 256.6 | 1,004.7 | ||||||||||||
Merger related adjustments (a) | 1.1 | 0.5 | — | 1.6 | ||||||||||||
Non-US GAAP combined business, net sales, excluding precious metal content | $ | 367.0 | $ | 382.7 | $ | 256.6 | $ | 1,006.3 |
Three Months Ended | ||||||||||||||||
June 30, 2015 | ||||||||||||||||
(in millions) | United States | Europe | Rest of World | Total | ||||||||||||
Net sales | $ | 252.1 | $ | 292.9 | $ | 153.0 | $ | 698.0 | ||||||||
Less: precious metal content of sales | 2.0 | 13.9 | 7.4 | 23.3 | ||||||||||||
Net sales, excluding precious metal content | 250.1 | 279.0 | 145.6 | 674.7 | ||||||||||||
Sirona net sales (a) | 103.5 | 106.5 | 96.1 | 306.1 | ||||||||||||
Elimination of intercompany net sales | — | (0.7 | ) | — | (0.7 | ) | ||||||||||
Non-US GAAP combined business, net sales, excluding precious metal content | $ | 353.6 | $ | 384.8 | $ | 241.7 | $ | 980.1 |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Gross profit | $ | 526.9 | $ | 399.7 | $ | 127.2 | 31.8 | % | |||||||
Gross profit as a percentage of net sales, including precious metal content | 51.6 | % | 57.3 | % | |||||||||||
Gross profit as a percentage of net sales, excluding precious metal content | 52.4 | % | 59.2 | % |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Selling, general and administrative expenses (“SG&A”) | $ | 402.1 | $ | 275.0 | $ | 127.1 | 46.2 | % | |||||||
Restructuring and other costs | 3.6 | 38.9 | (35.3 | ) | (90.7 | %) | |||||||||
SG&A as a percentage of net sales, including precious metal content | 39.3 | % | 39.4 | % | |||||||||||
SG&A as a percentage of net sales, excluding precious metal content | 40.0 | % | 40.8 | % |
Three Months Ended June 30, | ||||||||||||
(in millions) | 2016 | 2015 | Change | |||||||||
Net interest expense | $ | 8.9 | $ | 9.1 | $ | (0.2 | ) | |||||
Other expense (income), net | (11.5 | ) | (0.3 | ) | (11.2 | ) | ||||||
Net interest and other expense | $ | (2.6 | ) | $ | 8.8 | $ | (11.4 | ) |
Three Months Ended June 30, | ||||||||||||
(in millions, except per share data) | 2016 | 2015 | $ Change | |||||||||
Provision (benefit) for income taxes | $ | 17.9 | $ | 24.8 | $ | (6.9 | ) | |||||
Effective income tax rate | 14.5 | % | 32.2 | % | ||||||||
Equity in net income (loss) of unconsolidated affiliated company | $ | — | $ | (8.1 | ) | $ | 8.1 | |||||
Net income attributable to Dentsply Sirona | $ | 105.4 | $ | 44.1 | $ | 61.3 | ||||||
Earnings per common share - diluted | $ | 0.44 | $ | 0.31 |
Three Months Ended | ||||||||
June 30, 2016 | ||||||||
(in millions, except per share amounts) | Net Income | Per Diluted Common Share | ||||||
Net income attributable to Dentsply Sirona | $ | 105.4 | $ | 0.44 | ||||
Business combination related costs and fair value adjustments, net of tax | 46.4 | 0.20 | ||||||
Amortization of purchased intangible assets, net of tax | 31.0 | 0.13 | ||||||
Restructuring program related costs and other costs, net of tax | 3.0 | 0.01 | ||||||
Credit risk and fair value adjustments, net of tax | 1.3 | 0.01 | ||||||
Income tax related adjustments | (6.2 | ) | (0.03 | ) | ||||
Adjusted non-US GAAP earnings | $ | 180.9 | $ | 0.76 |
Three Months Ended | ||||||||
June 30, 2015 | ||||||||
(in millions, except per share amounts) | Net Income | Per Diluted Common Share | ||||||
Net income attributable to Dentsply Sirona | $ | 44.1 | $ | 0.31 | ||||
Restructuring program related costs and other costs, net of tax | 37.0 | 0.26 | ||||||
Certain fair value adjustments related to an unconsolidated affiliated company, net of tax | 8.3 | 0.06 | ||||||
Amortization of purchased intangible assets, net of tax | 7.6 | 0.05 | ||||||
Income tax related adjustments | 5.0 | 0.04 | ||||||
Credit risk and fair value adjustments, net of tax | 1.3 | 0.01 | ||||||
Business combination related costs and fair value adjustments, net of tax | 0.3 | — | ||||||
Adjusted non-US GAAP earnings | $ | 103.6 | $ | 0.73 |
Three Months Ended | |||||||
June 30, 2016 | |||||||
(in millions) | Operating Income | Percentage of Net Sales, Excluding Precious Metal Content | |||||
Operating income attributable to Dentsply Sirona | $ | 121.2 | 12.1 | % | |||
Business combination related costs and fair value adjustments | 62.0 | 6.2 | % | ||||
Amortization of purchased intangible assets | 43.6 | 4.3 | % | ||||
Restructuring program related costs and other costs | 4.3 | 0.4 | % | ||||
Credit risk and fair value adjustments | 1.3 | 0.1 | % | ||||
Adjusted non-US GAAP Operating Income | $ | 232.4 | 23.1 | % |
Three Months Ended | |||||||
June 30, 2015 | |||||||
(in millions) | Operating Income | Percentage of Net Sales, Excluding Precious Metal Content | |||||
Operating income attributable to Dentsply Sirona | $ | 85.8 | 12.7 | % | |||
Restructuring program related costs and other costs | 43.9 | 6.5 | % | ||||
Amortization of purchased intangible assets | 10.9 | 1.6 | % | ||||
Credit risk and fair value adjustments | 2.0 | 0.3 | % | ||||
Business combination related costs and fair value adjustments | 0.4 | 0.1 | % | ||||
Adjusted non-US GAAP Operating Income | $ | 143.0 | 21.2 | % |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Dental and Healthcare Consumables | $ | 526.7 | $ | 487.8 | $ | 38.9 | 8.0 | % | |||||||
Technologies | 478.0 | 186.9 | 291.1 | NM |
Three Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Dental and Healthcare Consumables | $ | 151.7 | $ | 125.8 | $ | 25.9 | 20.6 | % | |||||||
Technologies | 112.1 | 21.7 | 90.4 | NM |
Three Months Ended | ||||||||||||
June 30, 2016 | ||||||||||||
(in millions) | Dental and Healthcare Consumables | Technologies | Total | |||||||||
Net sales | $ | 543.8 | $ | 478.2 | $ | 1,022.0 | ||||||
Less: precious metal content of sales | 17.1 | 0.2 | 17.3 | |||||||||
Net sales, excluding precious metal content | 526.7 | 478.0 | 1,004.7 | |||||||||
Merger related adjustments (a) | — | 1.6 | 1.6 | |||||||||
Non-US GAAP combined business, net sales, excluding precious metal content | $ | 526.7 | $ | 479.6 | $ | 1,006.3 |
Three Months Ended | ||||||||||||
June 30, 2015 | ||||||||||||
(in millions) | Dental and Healthcare Consumables | Technologies | Total | |||||||||
Net sales | $ | 510.9 | $ | 187.1 | $ | 698.0 | ||||||
Less: precious metal content of sales | 23.1 | 0.2 | 23.3 | |||||||||
Net sales, excluding precious metal content | 487.8 | 186.9 | 674.7 | |||||||||
Sirona net sales (a) | 26.8 | 279.3 | 306.1 | |||||||||
Elimination of intercompany net sales | (0.7 | ) | — | (0.7 | ) | |||||||
Non-US GAAP combined business, net sales, excluding precious metal content | $ | 513.9 | $ | 466.2 | $ | 980.1 |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Net sales | $ | 1,794.6 | $ | 1,354.3 | $ | 440.3 | 32.5 | % | |||||||
Less: precious metal content of sales | 35.4 | 48.1 | (12.7 | ) | (26.4 | %) | |||||||||
Net sales, excluding precious metal content | $ | 1,759.2 | $ | 1,306.2 | $ | 453.0 | 34.7 | % |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Net sales | $ | 1,794.6 | $ | 1,354.3 | $ | 440.3 | 32.5 | % | |||||||
Less: precious metal content of sales | 35.4 | 48.1 | (12.7 | ) | (26.4 | %) | |||||||||
Net sales, excluding precious metal content | 1,759.2 | 1,306.2 | 453.0 | 34.7 | % | ||||||||||
Sirona net sales (a) | 160.7 | 563.4 | (402.7 | ) | NM | ||||||||||
Merger related adjustments (b) | 10.4 | — | 10.4 | NM | |||||||||||
Elimination of intercompany net sales | (0.4 | ) | (1.2 | ) | 0.8 | NM | |||||||||
Non-US GAAP combined business, net sales, excluding precious metal content | $ | 1,929.9 | $ | 1,868.4 | $ | 61.5 | 3.3 | % |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
United States | $ | 644.4 | $ | 488.7 | $ | 155.7 | 31.9 | % | |||||||
Europe | 682.1 | 545.1 | 137.0 | 25.1 | % | ||||||||||
Rest of World | 432.7 | 272.4 | 160.3 | 58.8 | % |
Six Months Ended | ||||||||||||||||
June 30, 2016 | ||||||||||||||||
(in millions) | United States | Europe | Rest of World | Total | ||||||||||||
Net sales | $ | 647.0 | $ | 703.6 | $ | 444.0 | $ | 1,794.6 | ||||||||
Less: precious metal content of sales | 2.6 | 21.5 | 11.3 | 35.4 | ||||||||||||
Net sales, excluding precious metal content | 644.4 | 682.1 | 432.7 | 1,759.2 | ||||||||||||
Sirona net sales (a) | 60.5 | 59.4 | 40.8 | 160.7 | ||||||||||||
Merger related adjustments (b) | 9.9 | 0.5 | — | 10.4 | ||||||||||||
Elimination of intercompany net sales | (0.1 | ) | (0.3 | ) | — | (0.4 | ) | |||||||||
Non-US GAAP combined business, net sales, excluding precious metal content | $ | 714.7 | $ | 741.7 | $ | 473.5 | $ | 1,929.9 |
Six Months Ended | ||||||||||||||||
June 30, 2015 | ||||||||||||||||
(in millions) | United States | Europe | Rest of World | Total | ||||||||||||
Net sales | $ | 492.9 | $ | 575.0 | $ | 286.4 | $ | 1,354.3 | ||||||||
Less: precious metal content of sales | 4.2 | 29.9 | 14.0 | 48.1 | ||||||||||||
Net sales, excluding precious metal content | 488.7 | 545.1 | 272.4 | 1,306.2 | ||||||||||||
Sirona net sales (a) | 184.7 | 198.7 | 180.0 | 563.4 | ||||||||||||
Elimination of intercompany net sales | (0.1 | ) | (1.1 | ) | — | (1.2 | ) | |||||||||
Non-US GAAP combined business, net sales, excluding precious metal content | $ | 673.3 | $ | 742.7 | $ | 452.4 | $ | 1,868.4 |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Gross profit | $ | 945.8 | $ | 773.0 | $ | 172.8 | 22.4 | % | |||||||
Gross profit as a percentage of net sales, including precious metal content | 52.7 | % | 57.1 | % | |||||||||||
Gross profit as a percentage of net sales, excluding precious metal content | 53.8 | % | 59.2 | % |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Selling, general and administrative expenses (“SG&A”) | $ | 744.2 | $ | 545.2 | $ | 199.0 | 36.5 | % | |||||||
Restructuring and other costs | 7.7 | 44.3 | (36.6 | ) | (82.6 | %) | |||||||||
SG&A as a percentage of net sales, including precious metal content | 41.5 | % | 40.3 | % | |||||||||||
SG&A as a percentage of net sales, excluding precious metal content | 42.3 | % | 41.7 | % |
Six Months Ended June 30, | ||||||||||||
(in millions) | 2016 | 2015 | Change | |||||||||
Net interest expense | $ | 17.6 | $ | 19.1 | $ | (1.5 | ) | |||||
Other expense (income), net | (14.9 | ) | 0.2 | (15.1 | ) | |||||||
Net interest and other expense | $ | 2.7 | $ | 19.3 | $ | (16.6 | ) |
Six Months Ended June 30, | ||||||||||||
(in millions, except per share data) | 2016 | 2015 | $ Change | |||||||||
Provision (benefit) for income taxes | $ | (40.0 | ) | $ | 43.6 | NM | ||||||
Effective income tax rate | NM | 26.6 | % | |||||||||
Equity in net income (loss) of unconsolidated affiliated company | $ | — | $ | (12.6 | ) | $ | 12.6 | |||||
Net income attributable to Dentsply Sirona | $ | 230.4 | $ | 108.1 | $ | 122.3 | ||||||
Earnings per common share - diluted | $ | 1.11 | $ | 0.76 | ||||||||
Six Months Ended | ||||||||
June 30, 2016 | ||||||||
(in millions, except per share amounts) | Net Income | Per Diluted Common Share | ||||||
Net income attributable to Dentsply Sirona | $ | 230.4 | $ | 1.11 | ||||
Business combination related costs and fair value adjustments, net of tax | 100.6 | 0.48 | ||||||
Amortization of purchased intangible assets, net of tax | 46.5 | 0.22 | ||||||
Credit risk and fair value adjustments, net of tax | 2.0 | 0.01 | ||||||
Restructuring program related costs and other costs, net of tax | 1.7 | 0.01 | ||||||
Income tax related adjustments | (77.9 | ) | (0.37 | ) | ||||
Adjusted non-US GAAP earnings | $ | 303.3 | $ | 1.46 |
Six Months Ended | ||||||||
June 30, 2015 | ||||||||
(in millions, except per share amounts) | Net Income | Per Diluted Common Share | ||||||
Net income attributable to Dentsply Sirona | $ | 108.1 | $ | 0.76 | ||||
Restructuring program related costs and other costs, net of tax | 41.4 | 0.29 | ||||||
Amortization of purchased intangible assets, net of tax | 15.3 | 0.11 | ||||||
Certain fair value adjustments related to an unconsolidated affiliated company, net of tax | 12.8 | 0.09 | ||||||
Income tax related adjustments | 5.5 | 0.04 | ||||||
Credit risk and fair value adjustments, net of tax | 3.3 | 0.02 | ||||||
Business combination related costs and fair value adjustments, net of tax | 1.3 | 0.01 | ||||||
Adjusted non-US GAAP earnings | $ | 187.7 | $ | 1.32 |
Six Months Ended | |||||||
June 30, 2016 | |||||||
(in millions) | Operating Income | Percentage of Net Sales, Excluding Precious Metal Content | |||||
Operating income attributable to Dentsply Sirona | $ | 193.9 | 11.0 | % | |||
Business combination related costs and fair value adjustments | 130.8 | 7.4 | % | ||||
Amortization of purchased intangible assets | 65.4 | 3.7 | % | ||||
Restructuring program related costs and other costs | 9.2 | 0.5 | % | ||||
Credit risk and fair value adjustments | 2.6 | 0.1 | % | ||||
Adjusted non-US GAAP Operating Income | $ | 401.9 | 22.7 | % |
Six Months Ended | |||||||
June 30, 2015 | |||||||
(in millions) | Operating Income | Percentage of Net Sales, Excluding Precious Metal Content | |||||
Operating income attributable to Dentsply Sirona | $ | 183.5 | 14.0 | % | |||
Restructuring program related costs and other costs | 50.3 | 3.9 | % | ||||
Amortization of purchased intangible assets | 21.9 | 1.7 | % | ||||
Credit risk and fair value adjustments | 4.0 | 0.3 | % | ||||
Business combination related costs and fair value adjustments | 1.8 | 0.1 | % | ||||
Adjusted non-US GAAP Operating Income | $ | 261.5 | 20.0 | % |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Dental and Healthcare Consumables | $ | 997.5 | $ | 943.3 | $ | 54.2 | 5.7 | % | |||||||
Technologies | 761.7 | 362.9 | 398.8 | NM |
Six Months Ended | |||||||||||||||
June 30, | |||||||||||||||
(in millions) | 2016 | 2015 | $ Change | % Change | |||||||||||
Dental and Healthcare Consumables | $ | 282.4 | $ | 239.1 | $ | 43.3 | 18.1 | % | |||||||
Technologies | 165.9 | 42.6 | $ | 123.3 | NM |
Six Months Ended | ||||||||||||
June 30, 2016 | ||||||||||||
(in millions) | Dental and Healthcare Consumables | Technologies | Total | |||||||||
Net sales | $ | 1,032.7 | $ | 761.9 | $ | 1,794.6 | ||||||
Less: precious metal content of sales | 35.2 | 0.2 | 35.4 | |||||||||
Net sales, excluding precious metal content | 997.5 | 761.7 | 1,759.2 | |||||||||
Sirona net sales (a) | 15.7 | 145.0 | 160.7 | |||||||||
Merger related adjustments (b) | — | 10.4 | 10.4 | |||||||||
Elimination of intercompany net sales | (0.4 | ) | — | (0.4 | ) | |||||||
Non-US GAAP combined business, net sales, excluding precious metal content | $ | 1,012.8 | $ | 917.1 | $ | 1,929.9 |
Six Months Ended | ||||||||||||
June 30, 2015 | ||||||||||||
(in millions) | Dental and Healthcare Consumables | Technologies | Total | |||||||||
Net sales | $ | 991.0 | $ | 363.3 | $ | 1,354.3 | ||||||
Less: precious metal content of sales | 47.7 | 0.4 | 48.1 | |||||||||
Net sales, excluding precious metal content | 943.3 | 362.9 | 1,306.2 | |||||||||
Sirona net sales (a) | 52.5 | 510.9 | 563.4 | |||||||||
Elimination of intercompany net sales | (1.2 | ) | — | (1.2 | ) | |||||||
Non-US GAAP combined business, net sales, excluding precious metal content | $ | 994.6 | $ | 873.8 | $ | 1,868.4 |
(in millions, except per share amounts) | ||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Cost of Shares Purchased | Number of Shares that May be Purchased Under the Share Repurchase Program | ||||||||||
April 1, 2016 to April 30, 2016 | — | — | — | 3.7 | ||||||||||
May 1, 2016 to May 31, 2016 | 1.1 | $ | 61.50 | $ | 70.0 | 2.7 | ||||||||
June 1, 2016 to June 30, 2016 | 0.5 | 62.91 | 30.0 | 2.5 | ||||||||||
1.6 | $ | 61.92 | $ | 100.0 |
Exhibit Number | Description | |
31 | Section 302 Certification Statements | |
32 | Section 906 Certification Statements | |
101.INS | XBRL Instance 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 Extension Labels Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
/s/ | Jeffrey T. Slovin | August 5, 2016 | |
Jeffrey T. Slovin | Date | ||
Chief Executive Officer |
/s/ | Ulrich Michel | August 5, 2016 | |
Ulrich Michel | Date | ||
Executive Vice President and | |||
Chief Financial Officer |
1. | I have reviewed this Form 10-Q of DENTSPLY SIRONA Inc.; |
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: |
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 equivalent functions): |
/s/ | Jeffrey T. Slovin |
Jeffrey T. Slovin | |
Chief Executive Officer |
1. | I have reviewed this Form 10-Q of DENTSPLY SIRONA Inc..; |
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: |
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 equivalent functions): |
/s/ | Ulrich Michel |
Ulrich Michel | |
Executive Vice President and | |
Chief Financial Officer |
(1) | The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company as of the date of the Report. |
/s/ | Jeffrey T. Slovin |
Jeffrey T. Slovin | |
Chief Executive Officer |
/s/ | Ulrich Michel |
Ulrich Michel | |
Executive Vice President and | |
Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 28, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DENTSPLY SIRONA Inc. | |
Entity Central Index Key | 0000818479 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Trading Symbol | XRAY | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 233,012,331 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Statement [Abstract] | ||||
Net sales | $ 1,022.0 | $ 698.0 | $ 1,794.6 | $ 1,354.3 |
Cost of products sold | 495.1 | 298.3 | 848.8 | 581.3 |
Gross profit | 526.9 | 399.7 | 945.8 | 773.0 |
Selling, general and administrative expenses | 402.1 | 275.0 | 744.2 | 545.2 |
Restructuring and other costs | 3.6 | 38.9 | 7.7 | 44.3 |
Operating income | 121.2 | 85.8 | 193.9 | 183.5 |
Other income and expenses: | ||||
Interest expense | 9.3 | 9.8 | 18.5 | 20.5 |
Interest income | (0.4) | (0.7) | (0.9) | (1.4) |
Other expense (income), net | (11.5) | (0.3) | (14.9) | 0.2 |
Income before income taxes | 123.8 | 77.0 | 191.2 | 164.2 |
Provision (benefit) for income taxes | 17.9 | 24.8 | (40.0) | 43.6 |
Equity in net loss of unconsolidated affiliated company | 0.0 | (8.1) | 0.0 | (12.6) |
Net income | 105.9 | 44.1 | 231.2 | 108.0 |
Less: Net income (loss) attributable to noncontrolling interests | 0.5 | 0.0 | 0.8 | (0.1) |
Net income attributable to Dentsply Sirona | $ 105.4 | $ 44.1 | $ 230.4 | $ 108.1 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.45 | $ 0.32 | $ 1.13 | $ 0.77 |
Diluted (in dollars per share) | $ 0.44 | $ 0.31 | $ 1.11 | $ 0.76 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 233.7 | 139.8 | 204.2 | 140.1 |
Diluted (in shares) | 237.4 | 142.3 | 207.9 | 142.5 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 105.9 | $ 44.1 | $ 231.2 | $ 108.0 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (92.8) | 76.0 | 94.0 | (112.9) |
Net gain (loss) on derivative financial instruments | 8.5 | (16.8) | (16.3) | 7.9 |
Net unrealized holding gain on available-for-sale securities | 0.0 | 39.4 | 0.0 | 70.3 |
Pension liability adjustments | 0.9 | 0.0 | 1.8 | 1.4 |
Total other comprehensive income (loss), net of tax | (83.4) | 98.6 | 79.5 | (33.3) |
Total comprehensive income | 22.5 | 142.7 | 310.7 | 74.7 |
Less: Comprehensive income attributable to noncontrolling interests | 0.5 | 0.0 | 0.9 | 0.5 |
Comprehensive income attributable to Dentsply Sirona | $ 22.0 | $ 142.7 | $ 309.8 | $ 74.2 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized | 250,000 | 250,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 200,000,000 |
Common stock, shares issued | 264,500,000 | 162,800,000 |
Common stock, shares outstanding | 233,000,000 | 140,100,000 |
Treasury stock, shares | 31,500,000 | 22,700,000 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions |
Total |
Common Stock |
Capital in Excess of Par Value |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Treasury Stock |
Total Dentsply Sirona Equity |
Noncontrolling Interests |
---|---|---|---|---|---|---|---|---|
Beginning Balance at Dec. 31, 2014 | $ 2,322.2 | $ 1.6 | $ 221.7 | $ 3,380.7 | $ (441.1) | $ (841.6) | $ 2,321.3 | $ 0.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 108.0 | 108.1 | 108.1 | (0.1) | ||||
Other comprehensive income (loss) | (33.4) | (33.9) | (33.9) | 0.5 | ||||
Exercise of stock options | 18.6 | (4.7) | 23.3 | 18.6 | ||||
Tax benefit from stock options exercised | 8.8 | 8.8 | 8.8 | |||||
Share based compensation expense | 11.8 | 11.8 | 11.8 | |||||
Funding of Employee Stock Ownership Plan | 4.7 | 1.1 | 3.6 | 4.7 | ||||
Treasury shares purchased | (99.0) | (99.0) | (99.0) | |||||
RSU distributions | (5.3) | (13.9) | 8.6 | (5.3) | ||||
RSU dividends | 0.2 | (0.2) | ||||||
Cash dividends | (20.2) | (20.2) | (20.2) | |||||
Ending Balance at Jun. 30, 2015 | 2,316.2 | 1.6 | 225.0 | 3,468.4 | (475.0) | (905.1) | 2,314.9 | 1.3 |
Beginning Balance at Dec. 31, 2015 | 2,339.4 | 1.6 | 237.8 | 3,591.0 | (594.0) | (898.4) | 2,338.0 | 1.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 231.2 | 230.4 | 230.4 | 0.8 | ||||
Other comprehensive income (loss) | 79.5 | 79.4 | 79.4 | 0.1 | ||||
Common stock issuance related to Sirona merger | 6,256.2 | 1.0 | 6,253.4 | 6,254.4 | 1.8 | |||
Exercise of stock options | 20.3 | (4.5) | 24.8 | 20.3 | ||||
Tax benefit from stock options exercised | 8.8 | 8.8 | 8.8 | |||||
Share based compensation expense | 17.4 | 17.4 | 17.4 | |||||
Funding of Employee Stock Ownership Plan | 6.3 | 2.1 | 4.2 | 6.3 | ||||
Treasury shares purchased | (600.0) | (600.0) | (600.0) | |||||
RSU distributions | (7.1) | (16.5) | 9.4 | (7.1) | ||||
RSU dividends | 0.3 | (0.3) | ||||||
Cash dividends | (36.4) | (36.4) | (36.4) | |||||
Ending Balance at Jun. 30, 2016 | $ 8,315.6 | $ 2.6 | $ 6,498.8 | $ 3,784.7 | $ (514.6) | $ (1,460.0) | $ 8,311.5 | $ 4.1 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends, per share (in dollars per share) | $ 0.155 | $ 0.145 |
SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Company, as applied in the interim consolidated financial statements presented herein are substantially the same as presented in DENTSPLY’s Form 10-K for the year ended December 31, 2015, except as may be indicated below: Accounts and Notes Receivable The Company records a provision for doubtful accounts, which is included in Selling, general and administrative expenses in the Consolidated Statements of Operations. Accounts and notes receivables – trade, net are stated net of allowances for doubtful accounts and trade discounts, which were $19.2 million at June 30, 2016 and $10.7 million at December 31, 2015. Marketable Securities The Company accounts for its direct investment in the DIO Corporation (“DIO”) using the cost-basis method of accounting. At June 30, 2016, the fair value of the direct investment was $79.8 million. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” that seeks to provide a single, comprehensive revenue recognition model for all contracts with customers that improve comparability within industries, across industries and across capital markets. Under this standard, an entity should recognize revenue for the transfer of goods or services equal to the amount it expects to be entitled to receive for those goods or services. Enhanced disclosure requirements regarding the nature, timing and uncertainty of revenue and related cash flows exist. To assist entities in applying the standard, a five step model for recognizing and measuring revenue from contracts with customers has been introduced. Entities have the option to apply the new guidance retrospectively to each prior reporting period presented (full retrospective approach) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of initial adoption (modified retrospective method). On July 9, 2015, the FASB issued ASU No. 2015-14, deferring the effective date by one year to annual reporting periods beginning after December 15, 2017. Early adoption is permitted. In April 2016, the FASB issued ASU No. 2016-10, which clarifies the “identifying performance obligations and licensing implementations guidance” aspects of Topic 606. In May 2016, the FASB issued ASU No. 2016-11, which amends and or rescinds certain aspects of the Accounting Standards Codification (“ASC”) to reflect the requirements under Topic 606. Additionally, the FASB issued ASU No. 2016-12, which clarifies the criteria for assessing collectibility, permits an entity to elect an accounting policy to exclude from the transaction price amounts collected from customers for all sales taxes, and provides a practical expedient that permits an entity to reflect the aggregate effect of all contract modifications that occur before the beginning of the earliest period presented in accordance with Topic 606. The Company expects to adopt these accounting standards for the quarter ended March 31, 2018. The Company is currently assessing the impact that these pronouncements may have on its financial position, results of operations, cash flows and disclosures, as well as the transition method it will use to adopt the guidance. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” This newly issued accounting standard requires that an entity measure inventory at the lower of cost or net realizable value, as opposed to the lower of cost or market value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Excluded from this update are the last-in, first-out (“LIFO”) and retail inventory methods of accounting for inventory. The amendments in this standard are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. Prospective application is required for presentation purposes. The Company is currently assessing the impact that this pronouncements may have on its financial position and disclosures. In September 2015, the FASB issued ASU No. 2015-16, “Simplifying Accounting for Measurement Period Adjustments.” This accounting standard seeks to simplify the accounting related to Business Combinations. Current US GAAP requires retrospective adjustment for provisional amounts recognized during the measurement periods when facts and circumstances that existed at the measurement date, if known, would have affected the measurement of the accounts initially recognized. This standard eliminates the requirement for retrospective adjustments and requires adjustments to the Financial Statements as needed in current period earnings for the full effect of changes. The Company adopted this accounting standard for the quarter ended March 31, 2016. The adoption of this standard did not materially impact the Company’s financial position or results of operations. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes.” This accounting standard seeks to simplify the accounting related to deferred income taxes. Current US GAAP requires an entity to separate deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) into current and noncurrent amounts for each tax jurisdiction based on the classification of the related asset or liability for financial reporting. DTAs and DTLs not related to assets and liabilities for financial reporting are classified based on the expected reversal date. The new standard requires DTAs or DTLs for each tax jurisdictions to be classified as noncurrent in a classified statement of financial position. The adoption of this standard is required for interim and fiscal periods ending after December 15, 2016 and is permitted to be adopted prospectively or retrospectively. The Company is currently assessing the impact that this standard may have on its financial position and disclosures. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This newly issued accounting standard seeks to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information as well as to improve and achieve convergence of the FASB and International Accounting Standards Board (“IASB”) standards on the accounting for financial instruments. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. It also requires enhanced disclosures about those investments and reduces the number of items that are recognized in other comprehensive income. The adoption of this standard is required for interim and fiscal periods ending after December 15, 2017 and should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently assessing the impact that this standard may have on its financial position, results of operations, cash flows and disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” This newly issued accounting standard seeks to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Current US GAAP does not require lessees to recognize assets and liabilities arising from operating leases on the balance sheet. This standard also provides guidance from the lessees prospective on how to determine if a lease is an operating lease or a financing lease and the differences in accounting for each. The adoption of this standard is required for interim and fiscal periods ending after December 15, 2018 and it is required to be applied retrospectively using the modified retrospective approach. Early adoption is permitted. The Company is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. In March 2016, the FASB issued ASU No. 2016-09, “Stock Compensation.” This newly issued accounting standard seeks to simplify the accounting for all entities that issue share-based payment awards to their employees. The primary areas of change include accounting for income taxes, cash flow statement classification of excess tax benefits and employee taxes paid when an employer withholds shares, accounting for forfeitures and tax withholding requirements. The adoption of this standard is required for interim and fiscal periods ending after December 15, 2016. Early adoption is permitted. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements and forfeitures should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement should be applied prospectively. The Company is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. |
STOCK COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK COMPENSATION | STOCK COMPENSATION The following table represents total stock based compensation expense for non-qualified stock options, restricted stock units (“RSU”) and the tax related benefit for the three and six months ended June 30, 2016 and 2015.
For the three and six months ended June 30, 2016, stock compensation expense of $12.1 million and $16.6 million, respectively, of which, $11.9 million and $16.3 million, respectively, was recorded in Selling, general and administrative expenses and $0.2 million and $0.3 million, respectively, was recorded in Cost of products sold on the Consolidated Statements of Operations. For the three and six months ended June 30, 2015, stock compensation expense of $6.6 million and $11.2 million, respectively, of which $6.4 million and $10.9 million, respectively, was recorded in Selling, general and administrative expense and $0.2 million and $0.3 million, respectively, was recorded in Cost of products sold on the Consolidated Statements of Operations. |
COMPREHENSIVE INCOME |
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COMPREHENSIVE INCOME [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME During the quarter ended June 30, 2016, foreign currency translation adjustments included currency translation gains of $91.4 million and losses of $1.6 million on the Company’s loans designated as hedges of net investments. During the quarter ended June 30, 2015, foreign currency translation adjustments included currency translation losses of $74.9 million and losses of $0.4 million on the Company’s loans designated as hedges of net investments. During the six months ended June 30, 2016, foreign currency translation adjustments included currency translation gains of $107.2 million and losses of $13.3 million on the Company’s loans designated as hedges of net investments. During the six months ended June 30, 2015, foreign currency translation adjustments included currency translation losses of $113.7 million and losses of $1.2 million on the Company’s loans designated as hedges of net investments. These amounts are recorded in AOCI, net of any related tax adjustments. At June 30, 2016 and December 31, 2015, the cumulative tax adjustments were $185.5 million and $169.3 million, respectively, primarily related to foreign currency translation adjustments. The cumulative foreign currency translation adjustments included translation losses of $200.3 million and $307.5 million at June 30, 2016 and December 31, 2015, respectively, and cumulative losses on loans designated as hedges of net investments of $107.0 million and $93.7 million, respectively. These foreign currency translation adjustments were partially offset by movements on derivative financial instruments, which are discussed in Note 10, Financial Instruments and Derivatives. Changes in AOCI, net of tax, by component for the six months ended June 30, 2016 and 2015:
Reclassifications out of accumulated other comprehensive income (expense) to the Consolidated Statements of Operations for the three and six months ended June 30, 2016 and 2015:
(a) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost for the three months ended June 30, 2016 and 2015 (see Note 8, Benefit Plans, for additional details).
(a) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost for the six months ended June 30, 2016 and 2015 (see Note 8, Benefit Plans, for additional details). |
EARNINGS PER COMMON SHARE |
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EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2016 and 2015:
The calculation of weighted average diluted common shares outstanding excludes stock options and RSUs of 0.5 million and 0.8 million shares of common stock that were outstanding during the three and six months ended June 30, 2016, respectively, because their effect would be antidilutive. On February 29, 2016, in conjunction with the merger, the Company increased the authorized number of common shares to 400.0 million. |
BUSINESS COMBINATIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS On February 29, 2016, DENTSPLY merged with Sirona in an all-stock transaction and the registrant was renamed DENSTPLY SIRONA Inc. In connection with the merger, each former share of Sirona common stock issued and outstanding immediately prior to February 29, 2016, was converted to 1.8142 shares of DENTSPLY common stock. The Company issued approximately 101.8 million shares of DENTSPLY common stock to former shareholders of Sirona common stock, representing approximately 42% of the approximately 242.2 million of the total shares of DENTSPLY common stock outstanding on the merger date. DENTSPLY was determined to be the accounting acquirer. In this all-stock transaction, only DENTSPLY common stock was transferred and DENTSPLY shareholders received approximately 58% of the voting interest of the combined company, and the Sirona shareholders received approximately 42% of the voting interest. Additional indicators included the combined company’s eleven Board of Directors which includes six members of the former DENTSPLY board, and five members of the former Sirona board, as well as DENTSPLY’s financial size. The Company changed its name to DENTSPLY SIRONA Inc. and the common stock continues to trade on the NASDAQ under the ticker “XRAY”. The merger combines leading platforms in consumables, equipment, and technologies which creates complimentary end to end solutions to meet customer needs and improve patient care. The combined company is positioned to capitalize on key industry trends to drive growth, including accelerating adoption of digital dentistry. The following table summarizes the consideration transferred:
*Table may not foot due to rounding The merger was recorded in accordance with US GAAP pursuant to the provisions of ASC Topic 805, Business Combinations. The Company has performed a preliminary valuation analysis of identifiable assets acquired and liabilities assumed and allocated the consideration based on the preliminary fair values of those identifiable assets acquired and liabilities assumed, but there may be material changes as the valuation is finalized. In addition, completion of the valuation may impact the assessment of the net deferred tax liability currently recognized with any adjustment resulting in a corresponding change to goodwill. The amount of these potential adjustments could be significant. The following table summarizes the preliminary fair value of identifiable assets acquired and liabilities assumed at the date of the merger:
Inventory held by Sirona includes a fair value adjustment of $72.0 million. The Company expensed this amount by June 30, 2016 as the acquired inventory was sold. Property, plant and equipment includes a fair value adjustment of $33.6 million, and consists of land, buildings, plant and equipment. Depreciable lives range from 25 to 50 years for buildings and from 3 to 10 years for plant and equipment. Deferred income for service contracts previously recorded by Sirona now includes a fair value adjustment which reduced Other current liabilities by $17.3 million. The consequence is that this amount cannot be recognized as revenue under US GAAP. Weighted average useful lives for intangible assets were determined based upon the useful economic lives of the intangible assets that are expected to contribute to future cash flows. The acquired definite-lived intangible assets are being amortized on a straight-line basis over their expected useful lives. Intangible assets acquired consist of the following:
The fair values assigned to intangible assets were determined through the use of the income approach, specifically the relief from royalty method was used to fair value the developed technology and patents and tradenames and trademarks and the multi-period excess earnings method was used to fair value customer relationships. Both valuation methods rely on management’s judgments, including expected future cash flows resulting from existing customer relationships, customer attrition rates, contributory effects of other assets utilized in the business, peer group cost of capital and royalty rates as well as other factors. The valuation of tangible assets was derived using a combination of the income approach, the market approach and the cost approach. Significant judgments used in valuing tangible assets include estimated reproduction or replacement cost, weighted average useful lives of assets, estimated selling prices, costs to complete and reasonable profit. The $3,754.6 million of goodwill is attributable to the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill is considered to represent the value associated with workforce and synergies the two Companies anticipate realizing as a combined company. Goodwill of $3,642.0 million has been assigned to the Company's Technologies segment and $112.6 million has been assigned to the Company’s Dental and Healthcare Consumables segment. The goodwill is not expected to be deductible for tax purposes. Sirona contributed net sales of $438.3 million and operating income of $102.4 million to the Company's Consolidated Statements of Operations during the period from February 29, 2016 to June 30, 2016 and is primarily included in the Technologies segment. The following unaudited pro forma financial information reflects the consolidated results of operations of the Company had the merger occurred on January 1, 2015. Sirona’s financial information has been compiled in a manner consistent with the accounting policies adopted by DENTSPLY. The unaudited pro forma financial information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the merger occurred on January 1, 2015, nor are they indicative of any future results.
The pro forma financial information is based on the Company's preliminary assignment of consideration given and therefore subject to adjustment. These pro forma amounts were calculated after applying the Company’s accounting policies and adjusting Sirona’s results to reflect adjustments that are directly attributable to the merger. These adjustments mainly include additional intangible asset amortization, depreciation, inventory fair value adjustments, transaction costs and taxes that would have been charged assuming the fair value adjustments had been applied from January 1, 2015, together with the consequential tax effects at the statutory rate. Pro forma results do not include any anticipated synergies or other benefits of the merger. For the six months ended June 30, 2016, in connection with the merger, the Company has incurred $31.4 million of transaction related costs, primarily amounts paid to third party advisers, legal and banking fees, which are included in Selling, general and administrative expenses in the Consolidated Statements of Operations. On June 27, 2016, the Company announced a definitive agreement to acquire all of the outstanding shares of privately held MIS Implants Technologies Ltd. (“MIS”), a dental implant systems manufacturer headquartered in northern Israel, for $375.0 million in cash. MIS is a growing and profitable manufacturer of dental implant systems with annual sales of approximately $80.0 million. The company is a leader in the value segment of the market, selling its products under the MIS brand through a wide distribution network that includes a direct sales force, reaching over 65 countries. The Company expects to close the acquisition by the end of 2016 upon successful completion of pre-closing conditions and routine governmental clearances. |
SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has numerous operating businesses covering a wide range of dental consumable products, dental technology products and certain healthcare products primarily serving the professional dental market. Professional dental products represented approximately 92% of net sales for the three and six months ended June 30, 2016 and 88% of net sales for the three and six months ended June 30, 2015. The operating businesses are combined into two operating groups, which generally have overlapping geographical presence, customer bases, distribution channels, and regulatory oversight. These operating groups are considered the Company’s reportable segments as the Company’s chief operating decision-maker regularly reviews financial results at the operating group level and uses this information to manage the Company’s operations. The accounting policies of the segments are consistent with those described in DENTSPLY’s most recently filed Form 10-K, in the summary of significant accounting policies. The Company evaluates performance of the segments based on the groups’ net third party sales, excluding precious metal content, and segment adjusted operating income. The Company defines net third party sales excluding precious metal content as the Company’s net sales excluding the precious metal cost within the products sold, which is considered a measure not calculated in accordance with US GAAP, and is therefore considered a non-US GAAP measure. The Company’s exclusion of precious metal content in the measurement of net third party sales enhances comparability of performance between periods as it excludes the fluctuating market prices of the precious metal content. The Company also evaluates segment performance based on each segment’s adjusted operating income before provision for income taxes and interest. Segment adjusted operating income is defined as operating income before income taxes and before certain corporate headquarter unallocated costs, restructuring and other costs, interest expense, interest income, other expense (income), net, amortization of intangible assets and depreciation resulting from the fair value step-up of property, plant and equipment from acquisitions. The Company’s segment adjusted operating income is considered a non-US GAAP measure. A description of the products and services provided within each of the Company’s two reportable segments is provided below. During the March 31, 2016 quarter, the Company realigned reporting responsibilities as a result of the merger and changed the management structure. The segment information below reflects the revised structure for all periods shown. Dental and Healthcare Consumables This segment includes responsibility for the worldwide design, manufacture, sales and distribution of the Company’s preventive, restorative, instruments, endodontic, and laboratory dental products, as well as consumable medical device products. Technologies This segment is responsible for the worldwide design, manufacture, sales and distribution of the Company’s dental implants, CAD/CAM systems, imaging systems, treatment centers and orthodontic products. The following tables set forth information about the Company’s segments for the three and six months ended June 30, 2016 and 2015: Third Party Net Sales
Third Party Net Sales, Excluding Precious Metal Content
Inter-segment Net Sales
(a) Includes amounts recorded at one distribution warehouse not managed by named segments. Segment Adjusted Operating Income
(b) Includes the results of unassigned Corporate headquarter costs, inter-segment eliminations and one distribution warehouse not managed by named segments. Assets
(c) Includes the assets of Corporate headquarters, inter-segment eliminations and one distribution warehouse not managed by named segments. For the three and six months ended June 30, 2016, two customers accounted for more than ten percent of consolidated net sales for the period and more than ten percent of the consolidated accounts receivable balance at the period ended. |
INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or market. The cost of inventories determined by the last-in, first-out (“LIFO”) method at June 30, 2016 and December 31, 2015 were $7.6 million and $8.1 million, respectively. The cost of other inventories was determined by the first-in, first-out (“FIFO”) or average cost methods. If the FIFO method had been used to determine the cost of LIFO inventories, the amounts at which net inventories are stated would be higher than reported at June 30, 2016 and December 31, 2015 by $6.5 million and $6.6 million, respectively. Inventories, net of inventory valuation reserves, consist of the following:
The inventory valuation reserves were $61.2 million and $36.3 million at June 30, 2016 and December 31, 2015, respectively. |
BENEFIT PLANS |
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Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BENEFIT PLANS | BENEFIT PLANS The following sets forth the components of net periodic benefit cost of the Company’s defined benefit plans and for the Company’s other postemployment benefit plans for the three and six months ended June 30, 2016 and 2015:
The following sets forth the information related to the contributions to the Company’s benefit plans for 2016:
The Company predominantly uses liability durations in establishing its discount rates, which are observed from indices of high-grade corporate bond yield curves in the respective economic regions of the plan. During the first quarter of 2016, the Company changed the method utilized to estimate the service cost and interest cost components of net periodic benefit costs for the Company’s major defined benefit pension plans in Germany, Switzerland and for all defined benefit pension and other postemployment healthcare plans in the United States. Historically, the Company estimated the service cost and interest cost components using a single weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. The Company has elected to use a spot rate approach for the estimation of these components of benefit cost by applying the specific spot rates along the yield curve to the relevant projected cash flows, as the Company believes this provides a better estimate of service and interest costs. The Company considers this a change in estimate and, accordingly, will account for it prospectively starting in 2016. This change does not affect the measurement of the Company’s total benefit obligation. |
RESTRUCTURING AND OTHER COSTS |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING AND OTHER COSTS | RESTRUCTURING AND OTHER COSTS Restructuring Costs During the three and six months ended June 30, 2016 , the Company recorded net restructuring costs and other costs of $3.6 million and $7.7 million, respectively. During the three and six months ended June 30, 2015, the Company recorded net restructuring costs and other costs of $38.9 million and $44.3 million, respectively. During 2015, the Company reorganized portions of its laboratory business and associated manufacturing capabilities within the Dental and Healthcare Consumables segment. These costs are recorded in Restructuring and other costs in the Consolidated Statements of Operations and the associated liabilities are recorded in Accrued liabilities in the Consolidated Balance Sheets. At June 30, 2016, the Company’s restructuring accruals were as follows:
The following table provides the year-to-date changes in the restructuring accruals by segment:
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FINANCIAL INSTRUMENTS AND DERIVATIVES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND DERIVATIVES | FINANCIAL INSTRUMENTS AND DERIVATIVES Derivative Instruments and Hedging Activities The Company’s activities expose it to a variety of market risks, which primarily include the risks related to the effects of changes in foreign currency exchange rates, interest rates and commodity prices. These financial exposures are monitored and managed by the Company as part of its overall risk management program. The objective of this risk management program is to reduce the volatility that these market risks may have on the Company’s operating results and equity. The Company employs derivative financial instruments to hedge certain anticipated transactions, firm commitments, or assets and liabilities denominated in foreign currencies. Additionally, the Company utilizes interest rate swaps to convert variable rate debt to fixed rate debt and to convert fixed rate debt to variable rate debt, cross currency basis swaps to convert debt denominated in one currency to another currency and commodity swaps to fix certain variable raw material costs. Derivative Instruments Designated as Hedging Cash Flow Hedges The following table summarizes the notional amounts of cash flow hedges by derivative instrument type at June 30, 2016 and the notional amounts expected to mature during the next 12 months, with a discussion of the various cash flow hedges by derivative instrument type following the table:
Foreign Exchange Risk Management The Company uses a layered hedging program to hedge select anticipated foreign currency cash flows to reduce volatility in both cash flows and reported earnings of the consolidated Company. The Company accounts for the designated foreign exchange forward contracts as cash flow hedges. As a result, the Company records the fair value of the contracts primarily through AOCI based on the tested effectiveness of the foreign exchange forward contracts. The Company measures the effectiveness of cash flow hedges of anticipated transactions on a spot-to-spot basis rather than on a forward-to-forward basis. Accordingly, the spot-to-spot change in the derivative fair value will be deferred in AOCI and released and recorded in the Consolidated Statements of Operations in the same period that the hedged transaction is recorded. The time value component of the fair value of the derivative is deemed ineffective and is reported currently in Other expense (income), net in the Consolidated Statements of Operations in the period which it is applicable. Any cash flows associated with these instruments are included in cash from operating activities in the Consolidated Statements of Cash Flows. The Company hedges various currencies, with the most significant activity occurring in euros, Swedish kronor, Canadian dollars, and Swiss francs. These foreign exchange forward contracts generally have maturities up to 18 months and the counterparties to the transactions are typically large international financial institutions. Interest Rate Risk Management The Company uses interest rate swaps to convert a portion of its variable interest rate debt to fixed interest rate debt. At June 30, 2016, the Company has two significant exposures hedged with interest rate contracts. One exposure is hedged with derivative contracts having notional amounts totaling 12.6 billion Japanese yen, which effectively converts the underlying variable interest rate debt facility to a fixed interest rate of 0.9% for an initial term of five years ending September 2019. Another exposure hedged with derivative contracts has a notional amount of 65.0 million Swiss francs, and effectively converts the underlying variable interest rate of a Swiss franc denominated loan to a fixed interest rate of 1.8% for an initial term of five years, ending in September 2016. The Company enters into interest rate swap contracts infrequently as they are only used to manage interest rate risk on long-term debt instruments and not for speculative purposes. Any cash flows associated with these instruments are included in cash from operating activities in the Consolidated Statements of Cash Flows. Commodity Risk Management The Company enters into precious metal commodity swap contracts to effectively fix certain variable raw material costs typically for up to 18 months. These swaps are used to stabilize the cost of components used in the production of certain products. The Company generally accounts for the commodity swaps as cash flow hedges. As a result, the Company records the fair value of the contracts primarily through AOCI based on the tested effectiveness of the commodity swaps. The Company measures the effectiveness of cash flow hedges of anticipated transactions on a spot-to-spot basis rather than on a forward-to-forward basis. Accordingly, the spot-to-spot change in the derivative fair value will be deferred in AOCI and released and recorded in the Consolidated Statements of Operations in the same period that the hedged transaction is recorded. The time value component of the fair value of the derivative is deemed ineffective and is reported currently in Interest expense in the Consolidated Statements of Operations in the period which it is applicable. Any cash flows associated with these instruments are included in cash from operating activities in the Consolidated Statements of Cash Flows. The following tables summarize the amount of gains (losses) recorded in AOCI in the Consolidated Balance Sheets and income (expense) in the Company’s Consolidated Statements of Operations related to all cash flow hedges for the three months ended June 30, 2016 and 2015:
The following tables summarize the amount of gains (losses) recorded in AOCI in the Consolidated Balance Sheets and income (expense) in the Company’s Consolidated Statements of Operations related to all cash flow hedges for the six months ended June 30, 2016 and 2015:
Overall, the derivatives designated as cash flow hedges are considered to be highly effective. At June 30, 2016, the Company expects to reclassify $1.0 million of deferred net losses on cash flow hedges recorded in AOCI to the Consolidated Statements of Operations during the next 12 months. This reclassification is primarily due to the sale of inventory that includes hedged purchases and recognized interest expense on interest rate swaps. The term over which the Company is hedging exposures to variability of cash flows (for all forecasted transactions, excluding interest payments on variable interest rate debt) is typically 18 months. For the rollforward of derivative instruments designated as cash flow hedges in AOCI see Note 3, Comprehensive Income. Hedges of Net Investments in Foreign Operations The Company has significant investments in foreign subsidiaries the most significant of which are denominated in euros, Swiss francs, Japanese yen and Swedish kronor. The net assets of these subsidiaries are exposed to volatility in currency exchange rates. The Company employs both derivative and non-derivative financial instruments to hedge a portion of this exposure. The derivative instruments consist of foreign exchange forward contracts. The non-derivative instruments consist of foreign currency denominated debt held at the parent company level. Translation gains and losses related to the net assets of the foreign subsidiaries are offset by gains and losses in derivative and non-derivative financial instruments designated as hedges of net investments, which are included in AOCI. Any cash flows associated with these instruments are included in investing activities in the Consolidated Statements of Cash Flows except for derivative instruments that include an other-than-insignificant financing element, in which case all cash flows will be classified as financing activities in the Consolidated Statements of Cash Flows. The following table summarizes the notional amounts of hedges of net investments by derivative instrument type at June 30, 2016 and the notional amounts expected to mature during the next 12 months:
The fair value of the foreign exchange forward contracts is the estimated amount the Company would receive or pay at the reporting date, taking into account the effective interest rates and foreign exchange rates. The effective portion of the change in the value of these derivatives is recorded in AOCI, net of tax effects. The following tables summarize the amount of gains (losses) recorded in AOCI in the Consolidated Balance Sheets and other income (expense) in the Company’s Consolidated Statements of Operations related to the hedges of net investments for the three months ended June 30, 2016 and 2015:
The following tables summarize the amount of gains (losses) recorded in AOCI in the Consolidated Balance Sheets and other income (expense) in the Company’s Consolidated Statements of Operations related to the hedges of net investments for the six months ended June 30, 2016 and 2015:
Fair Value Hedges The Company used interest rate swaps to convert a portion of its fixed interest rate debt to variable interest rate debt. The Company had U.S. dollar denominated interest rate swaps with an initial total notional value of $150.0 million to effectively convert the underlying fixed interest rate of 4.1% on the Company’s $250.0 million Private Placement Notes (“PPN”) to variable rate, the debt and interest rate swap matured in February 2016. The notional value of the swaps declined proportionately as portions of the PPN matured. These interest rate swaps were designated as fair value hedges of the interest rate risk associated with the hedged portion of the fixed rate PPN. Accordingly, the Company carried the portion of the hedged debt at fair value, with the change in debt and swaps offsetting each other in the Consolidated Statements of Operations. Any cash flows associated with these instruments were included in operating activities in the Consolidated Statements of Cash Flows. The following tables summarize the amount of income (expense) recorded in the Company’s Consolidated Statements of Operations related to the hedges of fair value for the three and six months ended June 30, 2016 and 2015:
Derivative Instruments Not Designated as Hedges The Company enters into derivative instruments with the intent to partially mitigate the foreign exchange revaluation risk associated with recorded assets and liabilities that are denominated in a non-functional currency. The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying non-functional currency balances and are recorded in Other expense (income), net in the Consolidated Statements of Operations. The Company primarily uses foreign exchange forward contracts and cross currency basis swaps to hedge these risks. Any cash flows associated with the foreign exchange forward contracts and interest rate swaps not designated as hedges are included in cash from operating activities in the Consolidated Statements of Cash Flows. Any cash flows associated with the cross currency basis swaps not designated as hedges are included in investing activities in the Consolidated Statements of Cash Flows except for derivative instruments that include an other-than-insignificant financing element, in which case the cash flows will be classified as financing activities in the Consolidated Statements of Cash Flows. The following tables summarize the aggregate notional amounts of the Company’s economic hedges not designated as hedges by derivative instrument types at June 30, 2016 and the notional amounts expected to mature during the next 12 months:
The following table summarizes the amounts of gains (losses) recorded in the Company’s Consolidated Statements of Operations related to the economic hedges not designated as hedging for the three and six months ended June 30, 2016 and 2015:
(a) The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying non-functional currency balances which are recorded in Other expense (income), net in the Consolidated Statements of Operations.
(a) The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying non-functional currency balances which are recorded in Other expense (income), net in the Consolidated Statements of Operations. During March 2016, the Company established hedges totaling 316.5 million euros to offset a euro denominated intercompany note receivable at a U.S. dollar functional entity. The change in the value of the hedges resulted in a $12.1 million loss, which were offset by the changes in the value of the euro denominated intercompany note receivable at a U.S. dollar functional entity. Consolidated Balance Sheets Location of Derivative Fair Values The following tables summarize the fair value and the location of the Company’s derivatives in the Consolidated Balance Sheets at June 30, 2016 and December 31, 2015:
Balance Sheet Offsetting Substantially all of the Company’s derivative contracts are subject to netting arrangements, whereby the right to offset occurs in the event of default or termination in accordance with the terms of the arrangements with the counterparty. While these contracts contain the enforceable right to offset through netting arrangements with the same counterparty, the Company elects to present them on a gross basis in the Consolidated Balance Sheets. Offsetting of financial assets and liabilities under netting arrangements at June 30, 2016:
Offsetting of financial assets and liabilities under netting arrangements at December 31, 2015:
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FAIR VALUE MEASUREMENT |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT The Company records financial instruments at fair value with unrealized gains and losses related to certain financial instruments reflected in AOCI in the Consolidated Balance Sheets. In addition, the Company recognizes certain liabilities at fair value. The Company applies the market approach for recurring fair value measurements. Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value of financial instruments is determined by reference to various market data and other valuation techniques as appropriate. The Company believes the carrying amounts of cash and cash equivalents, accounts receivable (net of allowance for doubtful accounts), prepaid expenses and other current assets, accounts payable, accrued liabilities, income taxes payable and notes payable approximate fair value due to the short-term nature of these instruments. The Company estimated the fair value and carrying value of total long-term debt, including the current portion, was $1,202.3 million and $1,181.5 million, respectively at June 30, 2016. At December 31, 2015, the Company estimated the fair value and carrying value, including the current portion, was $1,160.7 million and $1,150.2 million, respectively. The interest rate on the $450.0 million Senior Notes, the $300.0 million Senior Notes, and the $250.0 million PPN are fixed rates of 4.1%, 2.8% and 4.1%, respectively, and their fair value is based on the interest rates as of June 30, 2016. The interest rates on variable rate term loan debt and commercial paper are consistent with current market conditions, therefore the fair value of these instruments approximates their carrying values. The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at June 30, 2016 and December 31, 2015, which are classified as Cash and cash equivalents, Prepaid expenses and other current assets, net, Other noncurrent assets, net, Accrued liabilities, and Other noncurrent liabilities in the Consolidated Balance Sheets. Financial assets and liabilities that are recorded at fair value as of the balance sheet date are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Derivative valuations are based on observable inputs to the valuation model including interest rates, foreign currency exchange rates, future commodities prices and credit risks. As discussed in Note 10, Financial Instruments and Derivatives, commodity contracts, certain interest rate swaps and foreign exchange forward contracts are considered cash flow hedges. In addition, certain cross currency basis swaps and foreign exchange forward contracts are considered hedges of net investments in foreign operations. The Company’s Level 3 liabilities are related to earn-out obligations on prior acquisitions that were assumed as part of the merger with Sirona. The following table presents a reconciliation of the Company’s Level 3 holdings measured at fair value on a recurring basis using unobservable inputs:
For the six months ended June 30, 2016, there were no other purchases, issuances or transfers of Level 3 financial instruments. |
INCOME TAXES |
6 Months Ended |
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Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Uncertainties in Income Taxes The Company recognizes in the interim consolidated financial statements, the impact of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. It is reasonably possible that certain amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date of the Company’s interim consolidated financial statements. Final settlement and resolution of outstanding tax matters in various jurisdictions during the next twelve months are not expected to be significant. Other Tax Matters During the first six months of 2016, the Company recorded a tax benefit from the release of a valuation allowance of approximately $78.6 million as a result of the merger related to previously unrecognized tax assets on foreign interest deduction carryforwards of a non-U.S. legacy DENTSPLY subsidiary. In addition, for the three and six months ended June 30, 2016, the Company recorded $4.1 million and $0.5 million of tax expense related to other discrete tax matters. |
FINANCING ARRANGEMENTS |
6 Months Ended |
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Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS On February 19, 2016, the Company issued the following: 11.0 million euros aggregate principal amount bearing interest of 2.05%, Series F Senior Notes due February 19, 2026; 15.0 million euros aggregate principal amount bearing interest of 2.05%, Series G Senior Notes due February 19, 2026; and 45.0 million euros aggregate principal amount bearing interest of 2.45%, Series H Senior Notes due February 19, 2031. Proceeds from the Senior Notes were used to pay the final required payment of $75.0 million under the $250.0 million PPN that matured on February 19, 2016. On March 16, 2016, the Company terminated the Sirona Senior Facilities Agreement and repaid the $52.5 million Facility A Term Loan that was set to mature November 16, 2016. Effective June 30, 2016, the Company amended and extended its $500 million multicurrency revolving credit facility for an additional year thorough July 23, 2021. In addition, certain non-extending members of the bank group were replaced with existing and new lenders. The Company has access to the full $500 million through July 23, 2021. The facility is unsecured and contains certain affirmative and negative covenants relating to the operations and financial condition of the Company. The most restrictive of these covenants pertain to asset dispositions and prescribed ratios of indebtedness to total capital and operating income, plus depreciation and amortization to interest expense. The Company’s revolving credit facility, term loans and Senior Notes contain certain affirmative and negative covenants relating to the Company's operations and financial condition. At June 30, 2016, the Company was in compliance with all debt covenants. At June 30, 2016, there were no outstanding borrowings, in the form of issued commercial paper, under the current $500.0 million multi-currency revolving credit facility. At June 30, 2016, the Company had $552 million of borrowing available under lines of credit, including lines available under its short-term arrangements and revolving credit agreement. |
GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company performed the required annual impairment tests of goodwill as of April 30, 2016 on 20 reporting units. As discussed in Note 6, Segment Information, effective in the first quarter of 2016, the Company realigned reporting responsibilities for multiple locations. For any realignment that resulted in reporting unit changes, the Company applied the relative fair value method to determine the reallocation of goodwill of the associated reporting units. To determine the fair value of the Company’s reporting units, the Company uses a discounted cash flow model with market-based support as its valuation technique to measure the fair value for its reporting units. The discounted cash flow model uses five-year forecasted cash flows plus a terminal value based on a multiple of earnings. In addition, the Company applies gross margin and operating expense assumptions consistent with historical trends. The total cash flows were discounted based on a range between 6.7% to 14.7%, which included assumptions regarding the Company’s weighted-average cost of capital. The Company considered the current market conditions both in the U.S. and globally, when determining its assumptions and reconciled the aggregated fair values of its reporting units to its market capitalization, which included a reasonable control premium based on market conditions. As a result of the annual impairment tests of goodwill, no impairment was identified. In addition, the Company assessed the annual impairment of indefinite-lived intangible assets as of April 30, 2016, which largely consists of acquired tradenames, in conjunction with the annual impairment tests of goodwill. The performance of the Company’s annual impairment test did not result in any impairment of the Company’s indefinite-lived assets. A reconciliation of changes in the Company’s goodwill by reportable segment is as follows:
Identifiable definite-lived and indefinite-lived intangible assets consist of the following:
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation On June 18, 2004, Marvin Weinstat, DDS and Richard Nathan, DDS filed a class action suit in San Francisco County, California alleging that the Company misrepresented that its Cavitron® ultrasonic scalers are suitable for use in oral surgical procedures. The Complaint seeks a recall of the product and refund of its purchase price to dentists who have purchased it for use in oral surgery. The Court certified the case as a class action in June 2006 with respect to the breach of warranty and unfair business practices claims. The class that was certified is defined as California dental professionals who, at any time during the period beginning June 18, 2000 through September 14, 2012, purchased and used one or more Cavitron® ultrasonic scalers for the performance of oral surgical procedures on their patients, which Cavitrons® were accompanied by Directions for Use that “Indicated” Cavitron® use for “periodontal debridement for all types of periodontal disease.” The case went to trial in September 2013, and on January 22, 2014, the San Francisco Superior Court issued its decision in the Company’s favor, rejecting all of the plaintiffs’ claims. The plaintiffs have appealed the Superior Court’s decision, and the appeal is now pending. The Company is defending against this appeal. On December 12, 2006, a Complaint was filed by Carole Hildebrand, DDS and Robert Jaffin, DDS in the Eastern District of Pennsylvania (the Plaintiffs subsequently added Dr. Mitchell Goldman as a named class representative). The case was filed by the same law firm that filed the Weinstat case in California. The Complaint asserts putative class action claims on behalf of dentists located in New Jersey and Pennsylvania. The Complaint seeks damages and asserts that the Company’s Cavitron® ultrasonic scaler was negligently designed and sold in breach of contract and warranty arising from misrepresentations about the potential uses of the product because it cannot assure the delivery of potable or sterile water. Following grant of a Company Motion and dismissal of the case for lack of jurisdiction, the plaintiffs filed a second complaint under the name of Dr. Hildebrand’s corporate practice, Center City Periodontists, asserting the same allegations (this case is now proceeding under the name “Center City Periodontists”). The plaintiffs moved to have the case certified as a class action, to which the Company has objected and filed its brief. The Court subsequently granted a Motion filed by the Company and dismissed plaintiffs’ New Jersey Consumer Fraud and negligent design claims, leaving only a breach of express warranty claim, in response to which the Company has filed a Motion for Summary Judgment on the express warranty cause of action, which was denied. The Court held four days of hearings during January and February 2016 on plaintiffs’ class certification motion. The Court has scheduled further hearings in the matter for August 2016. On January 20, 2014, the Company was served with a qui tam complaint filed by two former and one current employee of the Company under the Federal False Claims Act and equivalent state and city laws. The lawsuit was previously under seal in the U.S. District Court for the Eastern District of Pennsylvania. The complaint alleges, among other things, that the Company engaged in various illegal marketing activities, and thereby caused dental and other healthcare professionals to file false claims for reimbursement with Federal and State governments. The relators seek injunctive relief, fines, treble damages, and attorneys’ fees and costs. On January 27, 2014, the United States filed with the Court a notice that it had elected not to intervene in the qui tam action at this time. The United States’ notice indicated that the named state and city co-plaintiffs had authorized the United States to communicate to the Court that they also had decided not to intervene at this time. These non-intervention decisions do not prevent the qui tam relators from litigating this action, and the United States and/or the named states and/or cities may seek to intervene in the action at a later time. On September 4, 2014, the Company’s motion to dismiss the complaint was granted in part and denied in part. The Company filed a motion for summary judgment in December 2015. In April 2016, the Court granted the Company’s motion for summary judgment, which disposes of all remaining claims against the Company in the matter. The plaintiffs filed a notice of appeal in May 2016 and the matter has been assigned by the Court of Appeals for mediation in September 2016. The Company will continue to vigorously defend itself. On October 2, 2015 and October 5, 2015, the Company and its wholly-owned subsidiary Dawkins Merger Sub Inc. (“Merger Sub”) were served with two separate putative class action complaints filed in the Court of Chancery of the State of Delaware by purported stockholders of Sirona Dental Systems, Inc. (“Sirona”) against the members of Sirona’s Board of Directors, the Company, and Merger Sub. The Complaints allege that the Company and Merger Sub aided and abetted and/or assisted Sirona’s Board members in breaching their fiduciary duties to Sirona’s stockholders in connection with the Agreement and Plan of Merger entered into between the Company and Sirona on September 15, 2015. The plaintiffs subsequently withdrew the two cases in December 2015 and April 2016. The Company does not believe a loss is probable related to the above litigation. Further a reasonable estimate of a possible range of loss cannot be made. In the event that one or more of these matters is unfavorably resolved, it is possible the Company’s results from operations, financial position or liquidity could be materially impacted. In 2012, the Company received subpoenas from the U. S. Attorney’s Office for the Southern District of Indiana (the “USAO”) and from the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”) requesting documents and information related to compliance with export controls and economic sanctions regulations by certain of its subsidiaries. The Company has voluntarily contacted OFAC and the Bureau of Industry and Security of the U. S. Department of Commerce (“BIS”), in connection with these matters as well as regarding compliance with export controls and economic sanctions regulations by certain other business units of the Company identified in connection with an internal review by the Company. On August 24, 2015, the Company entered into an extension of the tolling agreement originally entered into in August 2014, such that the statute of limitations is now tolled until September 1, 2016. The Company is cooperating with the USAO, OFAC and BIS with respect to these matters. At this stage of the inquiries, the Company is unable to predict the ultimate outcome of these matters or what impact, if any, the outcome of these matters might have on the Company’s consolidated financial position, results of operations or cash flows. Violations of export control or economic sanctions laws or regulations could result in a range of governmental enforcement actions, including fines or penalties, injunctions and/or criminal or other civil proceedings, which actions could have a material adverse effect on the Company’s reputation, business, financial condition and results of operations. At this time, no claims have been made against the Company. In addition to the matters disclosed above, the Company is, from time to time, subject to a variety of litigation and similar proceedings incidental to its business. These legal matters primarily involve claims for damages arising out of the use of the Company’s products and services and claims relating to intellectual property matters including patent infringement, employment matters, tax matters, commercial disputes, competition and sales and trading practices, personal injury and insurance coverage. The Company may also become subject to lawsuits as a result of past or future acquisitions or as a result of liabilities retained from, representations, warranties or indemnities provided in connection with, divested businesses. Some of these lawsuits may include claims for punitive and consequential, as well as compensatory damages. Based upon the Company’s experience, current information and applicable law, it does not believe that these proceedings and claims will have a material adverse effect on its consolidated results of operations, financial position or liquidity. However, in the event of unexpected further developments, it is possible that the ultimate resolution of these matters, or other similar matters, if unfavorable, may be materially adverse to the Company’s business, financial condition, results of operations or liquidity. While the Company maintains general, products, property, workers’ compensation, automobile, cargo, aviation, crime, fiduciary and directors’ and officers’ liability insurance up to certain limits that cover certain of these claims, this insurance may be insufficient or unavailable to cover such losses. In addition, while the Company believes it is entitled to indemnification from third parties for some of these claims, these rights may also be insufficient or unavailable to cover such losses. Purchase Commitments From time to time, the Company enters into long-term inventory purchase commitments with minimum purchase requirements for raw materials and finished goods to ensure the availability of products for production and distribution. These commitments may have a significant impact on levels of inventory maintained by the Company. |
SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Accounts and Notes Receivable | The Company records a provision for doubtful accounts, which is included in Selling, general and administrative expenses in the Consolidated Statements of Operations. |
Marketable Securities | The Company accounts for its direct investment in the DIO Corporation (“DIO”) using the cost-basis method of accounting. |
New Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” that seeks to provide a single, comprehensive revenue recognition model for all contracts with customers that improve comparability within industries, across industries and across capital markets. Under this standard, an entity should recognize revenue for the transfer of goods or services equal to the amount it expects to be entitled to receive for those goods or services. Enhanced disclosure requirements regarding the nature, timing and uncertainty of revenue and related cash flows exist. To assist entities in applying the standard, a five step model for recognizing and measuring revenue from contracts with customers has been introduced. Entities have the option to apply the new guidance retrospectively to each prior reporting period presented (full retrospective approach) or retrospectively with a cumulative effect adjustment to retained earnings for initial application of the guidance at the date of initial adoption (modified retrospective method). On July 9, 2015, the FASB issued ASU No. 2015-14, deferring the effective date by one year to annual reporting periods beginning after December 15, 2017. Early adoption is permitted. In April 2016, the FASB issued ASU No. 2016-10, which clarifies the “identifying performance obligations and licensing implementations guidance” aspects of Topic 606. In May 2016, the FASB issued ASU No. 2016-11, which amends and or rescinds certain aspects of the Accounting Standards Codification (“ASC”) to reflect the requirements under Topic 606. Additionally, the FASB issued ASU No. 2016-12, which clarifies the criteria for assessing collectibility, permits an entity to elect an accounting policy to exclude from the transaction price amounts collected from customers for all sales taxes, and provides a practical expedient that permits an entity to reflect the aggregate effect of all contract modifications that occur before the beginning of the earliest period presented in accordance with Topic 606. The Company expects to adopt these accounting standards for the quarter ended March 31, 2018. The Company is currently assessing the impact that these pronouncements may have on its financial position, results of operations, cash flows and disclosures, as well as the transition method it will use to adopt the guidance. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” This newly issued accounting standard requires that an entity measure inventory at the lower of cost or net realizable value, as opposed to the lower of cost or market value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Excluded from this update are the last-in, first-out (“LIFO”) and retail inventory methods of accounting for inventory. The amendments in this standard are effective for fiscal years beginning after December 15, 2016 and for interim periods within fiscal years beginning after December 15, 2017. Prospective application is required for presentation purposes. The Company is currently assessing the impact that this pronouncements may have on its financial position and disclosures. In September 2015, the FASB issued ASU No. 2015-16, “Simplifying Accounting for Measurement Period Adjustments.” This accounting standard seeks to simplify the accounting related to Business Combinations. Current US GAAP requires retrospective adjustment for provisional amounts recognized during the measurement periods when facts and circumstances that existed at the measurement date, if known, would have affected the measurement of the accounts initially recognized. This standard eliminates the requirement for retrospective adjustments and requires adjustments to the Financial Statements as needed in current period earnings for the full effect of changes. The Company adopted this accounting standard for the quarter ended March 31, 2016. The adoption of this standard did not materially impact the Company’s financial position or results of operations. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes.” This accounting standard seeks to simplify the accounting related to deferred income taxes. Current US GAAP requires an entity to separate deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) into current and noncurrent amounts for each tax jurisdiction based on the classification of the related asset or liability for financial reporting. DTAs and DTLs not related to assets and liabilities for financial reporting are classified based on the expected reversal date. The new standard requires DTAs or DTLs for each tax jurisdictions to be classified as noncurrent in a classified statement of financial position. The adoption of this standard is required for interim and fiscal periods ending after December 15, 2016 and is permitted to be adopted prospectively or retrospectively. The Company is currently assessing the impact that this standard may have on its financial position and disclosures. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This newly issued accounting standard seeks to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information as well as to improve and achieve convergence of the FASB and International Accounting Standards Board (“IASB”) standards on the accounting for financial instruments. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. It also requires enhanced disclosures about those investments and reduces the number of items that are recognized in other comprehensive income. The adoption of this standard is required for interim and fiscal periods ending after December 15, 2017 and should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company is currently assessing the impact that this standard may have on its financial position, results of operations, cash flows and disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” This newly issued accounting standard seeks to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Current US GAAP does not require lessees to recognize assets and liabilities arising from operating leases on the balance sheet. This standard also provides guidance from the lessees prospective on how to determine if a lease is an operating lease or a financing lease and the differences in accounting for each. The adoption of this standard is required for interim and fiscal periods ending after December 15, 2018 and it is required to be applied retrospectively using the modified retrospective approach. Early adoption is permitted. The Company is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. In March 2016, the FASB issued ASU No. 2016-09, “Stock Compensation.” This newly issued accounting standard seeks to simplify the accounting for all entities that issue share-based payment awards to their employees. The primary areas of change include accounting for income taxes, cash flow statement classification of excess tax benefits and employee taxes paid when an employer withholds shares, accounting for forfeitures and tax withholding requirements. The adoption of this standard is required for interim and fiscal periods ending after December 15, 2016. Early adoption is permitted. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements and forfeitures should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement should be applied prospectively. The Company is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. |
STOCK COMPENSATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Based Compensation | The following table represents total stock based compensation expense for non-qualified stock options, restricted stock units (“RSU”) and the tax related benefit for the three and six months ended June 30, 2016 and 2015.
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COMPREHENSIVE INCOME (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE INCOME [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in AOCI, net of tax, by component for the six months ended June 30, 2016 and 2015:
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Reclassification Out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income (expense) to the Consolidated Statements of Operations for the three and six months ended June 30, 2016 and 2015:
(a) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost for the three months ended June 30, 2016 and 2015 (see Note 8, Benefit Plans, for additional details).
(a) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost for the six months ended June 30, 2016 and 2015 (see Note 8, Benefit Plans, for additional details). |
EARNINGS PER COMMON SHARE (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2016 and 2015:
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BUSINESS COMBINATIONS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Business Combination | The following table summarizes the consideration transferred:
*Table may not foot due to rounding The following table summarizes the preliminary fair value of identifiable assets acquired and liabilities assumed at the date of the merger:
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Summary of Intangible Assets Acquired | Intangible assets acquired consist of the following:
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Summary of Pro Forma Information | The following unaudited pro forma financial information reflects the consolidated results of operations of the Company had the merger occurred on January 1, 2015. Sirona’s financial information has been compiled in a manner consistent with the accounting policies adopted by DENTSPLY. The unaudited pro forma financial information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the merger occurred on January 1, 2015, nor are they indicative of any future results.
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SEGMENT INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | The following tables set forth information about the Company’s segments for the three and six months ended June 30, 2016 and 2015: Third Party Net Sales
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Net Sales, Excluding Precious Metal Content | Third Party Net Sales, Excluding Precious Metal Content
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Intersegment Net Sales | Inter-segment Net Sales
(a) Includes amounts recorded at one distribution warehouse not managed by named segments. |
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Segment Operating Income | Segment Adjusted Operating Income
(b) Includes the results of unassigned Corporate headquarter costs, inter-segment eliminations and one distribution warehouse not managed by named segments. |
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Assets | Assets
(c) Includes the assets of Corporate headquarters, inter-segment eliminations and one distribution warehouse not managed by named segments. |
INVENTORIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net | Inventories, net of inventory valuation reserves, consist of the following:
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BENEFIT PLANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | The following sets forth the components of net periodic benefit cost of the Company’s defined benefit plans and for the Company’s other postemployment benefit plans for the three and six months ended June 30, 2016 and 2015:
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Information Related to the Contributions to the Company's Benefit Plans | The following sets forth the information related to the contributions to the Company’s benefit plans for 2016:
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RESTRUCTURING AND OTHER COSTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Accruals | At June 30, 2016, the Company’s restructuring accruals were as follows:
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Cumulative Amounts for the Provisions and Adjustments and Amounts Applied for All the Plans by Segment | The following table provides the year-to-date changes in the restructuring accruals by segment:
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FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table summarizes the notional amounts of cash flow hedges by derivative instrument type at June 30, 2016 and the notional amounts expected to mature during the next 12 months, with a discussion of the various cash flow hedges by derivative instrument type following the table:
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Derivative Instruments, Gain (Loss) | The following table summarizes the amounts of gains (losses) recorded in the Company’s Consolidated Statements of Operations related to the economic hedges not designated as hedging for the three and six months ended June 30, 2016 and 2015:
(a) The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying non-functional currency balances which are recorded in Other expense (income), net in the Consolidated Statements of Operations.
(a) The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying non-functional currency balances which are recorded in Other expense (income), net in the Consolidated Statements of Operations. |
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Schedule of Aggregate Notional Amounts of Economic Hedges Not Designated as Hedges | The following tables summarize the aggregate notional amounts of the Company’s economic hedges not designated as hedges by derivative instrument types at June 30, 2016 and the notional amounts expected to mature during the next 12 months:
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables summarize the fair value and the location of the Company’s derivatives in the Consolidated Balance Sheets at June 30, 2016 and December 31, 2015:
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Offsetting Derivative Assets and Liabilities | Offsetting of financial assets and liabilities under netting arrangements at June 30, 2016:
Offsetting of financial assets and liabilities under netting arrangements at December 31, 2015:
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Cash Flow Hedging | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following tables summarize the amount of gains (losses) recorded in AOCI in the Consolidated Balance Sheets and income (expense) in the Company’s Consolidated Statements of Operations related to all cash flow hedges for the three months ended June 30, 2016 and 2015:
The following tables summarize the amount of gains (losses) recorded in AOCI in the Consolidated Balance Sheets and income (expense) in the Company’s Consolidated Statements of Operations related to all cash flow hedges for the six months ended June 30, 2016 and 2015:
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Net Investment Hedging | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following tables summarize the amount of gains (losses) recorded in AOCI in the Consolidated Balance Sheets and other income (expense) in the Company’s Consolidated Statements of Operations related to the hedges of net investments for the three months ended June 30, 2016 and 2015:
The following tables summarize the amount of gains (losses) recorded in AOCI in the Consolidated Balance Sheets and other income (expense) in the Company’s Consolidated Statements of Operations related to the hedges of net investments for the six months ended June 30, 2016 and 2015:
The following table summarizes the notional amounts of hedges of net investments by derivative instrument type at June 30, 2016 and the notional amounts expected to mature during the next 12 months:
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Fair Value Hedging | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) | The following tables summarize the amount of income (expense) recorded in the Company’s Consolidated Statements of Operations related to the hedges of fair value for the three and six months ended June 30, 2016 and 2015:
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FAIR VALUE MEASUREMENT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities that are Recorded at Fair Value and Classified Based on the Lowest Level of Input | The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at June 30, 2016 and December 31, 2015, which are classified as Cash and cash equivalents, Prepaid expenses and other current assets, net, Other noncurrent assets, net, Accrued liabilities, and Other noncurrent liabilities in the Consolidated Balance Sheets. Financial assets and liabilities that are recorded at fair value as of the balance sheet date are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
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Reconciliation of Level 3 Holdings Measured at Fair Value on a Recurring Basis Using Unobservable Inputs | The following table presents a reconciliation of the Company’s Level 3 holdings measured at fair value on a recurring basis using unobservable inputs:
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Goodwill | A reconciliation of changes in the Company’s goodwill by reportable segment is as follows:
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Schedule of Definite-lived and Indefinite-lived Intangible Assets | Identifiable definite-lived and indefinite-lived intangible assets consist of the following:
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SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
DIO Corporation | ||
Significant Accounting Policies [Line Items] | ||
Fair value of direct investment | $ 79.8 | |
Trade Accounts Receivable | ||
Significant Accounting Policies [Line Items] | ||
Allowance for doubtful accounts and trade discounts | $ 19.2 | $ 10.7 |
STOCK COMPENSATION - STOCK BASED COMPENSATION EXPENSE AND TAX RELATED BENEFIT (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 12.1 | $ 6.6 | $ 16.6 | $ 11.2 |
Total related tax benefit | 2.8 | 1.8 | 4.1 | 3.4 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 3.4 | 2.3 | 5.5 | 3.8 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 8.7 | $ 4.3 | $ 11.1 | $ 7.4 |
STOCK COMPENSATION - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 12.1 | $ 6.6 | $ 16.6 | $ 11.2 |
Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 11.9 | 6.4 | 16.3 | 10.9 |
Cost of Products Sold | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.3 |
EARNINGS PER COMMON SHARE - COMPUTATION OF BASIC AND DILUTED EARNINGS PER COMMON SHARE (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Earnings Per Share [Abstract] | ||||
Net income attributable to Dentsply Sirona | $ 105.4 | $ 44.1 | $ 230.4 | $ 108.1 |
Shares | ||||
Weighted average common shares outstanding (in shares) | 233.7 | 139.8 | 204.2 | 140.1 |
Incremental weighted average shares from assumed exercise of dilutive options from stock-based compensation awards (in shares) | 3.7 | 2.5 | 3.7 | 2.4 |
Diluted (in shares) | 237.4 | 142.3 | 207.9 | 142.5 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.45 | $ 0.32 | $ 1.13 | $ 0.77 |
Diluted (in dollars per share) | $ 0.44 | $ 0.31 | $ 1.11 | $ 0.76 |
EARNINGS PER COMMON SHARE - ADDITIONAL INFORMATION (Detail) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2016 |
Feb. 29, 2016 |
Dec. 31, 2015 |
|
Earnings Per Share [Abstract] | ||||
Antidilutive common stock options not included in the computation of diluted earnings per common share (in shares) | 500,000 | 800,000 | ||
Common stock, shares authorized | 400,000,000 | 400,000,000 | 400,000,000 | 200,000,000 |
BUSINESS COMBINATIONS - SUMMARY OF CONSIDERATION (Details) $ / shares in Units, shares in Millions, $ in Millions |
Feb. 29, 2016
USD ($)
$ / shares
shares
|
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Sirona Dental Systems Inc | |
Business Acquisition [Line Items] | |
DENTSPLY common stock per share price at February 26, 2016 (in dollars per share) | $ / shares | $ 60.67 |
Fair value of DENTSPLY common stock issued to Sirona shareholders | $ | $ 6,173.8 |
Total acquisition consideration | $ | $ 6,256.2 |
Common Stock | Sirona Dental Systems Inc | |
Business Acquisition [Line Items] | |
Exchange ratio | 1.8142 |
DENTSPLY common stock issued for consideration | shares | 101.8 |
Sirona Dental Systems Inc | |
Business Acquisition [Line Items] | |
Sirona common shares outstanding at February 29, 2016 | shares | 56.1 |
Fair value of vested portion of Sirona share based awards outstanding - 1.5 million at February 29, 2016 | $ | $ 82.4 |
Equity awards canceled, shares | shares | 1.5 |
BUSINESS COMBINATIONS - PURCHASE PRICE ALLOCATION (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Feb. 29, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||
Goodwill | $ 5,794.7 | $ 1,987.6 | |
Sirona Dental Systems Inc | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||
Cash and cash equivalents | $ 522.3 | ||
Trade receivables | 143.0 | ||
Inventory | 220.7 | ||
Prepaid expenses and other current assets | 109.4 | ||
Property, plant and equipment | 237.1 | ||
Identifiable intangible assets | 2,435.0 | ||
Goodwill | 3,754.6 | ||
Other long-term assets | 10.9 | ||
Total assets | 7,433.0 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||
Accounts payable | 68.0 | ||
Other current liabilities | 191.0 | ||
Debt | 57.5 | ||
Deferred income taxes | 766.9 | ||
Other long-term liabilities | 93.4 | ||
Total liabilities | 1,176.8 | ||
Total identifiable net assets | $ 6,256.2 |
BUSINESS COMBINATIONS - SUMMARY OF INTANGIBLE ASSETS (Details) - USD ($) $ in Millions |
Feb. 29, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets, net | $ 3,028.5 | $ 600.7 | |
Sirona Dental Systems Inc | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets, net | $ 2,435.0 | ||
Sirona Dental Systems Inc | Trade names and trademarks | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets acquired, amount | 905.0 | ||
Sirona Dental Systems Inc | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired, amount | $ 495.0 | ||
Intangible assets acquired, useful life | 14 years | ||
Sirona Dental Systems Inc | Developed technology and patents | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired, amount | $ 1,035.0 | ||
Intangible assets acquired, useful life | 12 years |
BUSINESS COMBINATIONS - PRO FORMA INFORMATION (Details) - Sirona Dental Systems Inc - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Business Acquisition [Line Items] | ||||
Net sales | $ 1,022.0 | $ 1,001.8 | $ 1,962.2 | $ 1,905.0 |
Net income attributable to Dentsply Sirona | $ 141.2 | $ 81.5 | $ 234.9 | $ 175.9 |
Diluted earnings per common share (in dollars per share) | $ 0.59 | $ 0.33 | $ 0.99 | $ 0.72 |
SEGMENT INFORMATION - NET SALES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Revenue, Major Customer [Line Items] | ||||
Net sales | $ 1,022.0 | $ 698.0 | $ 1,794.6 | $ 1,354.3 |
Operating Segments | Dental And Healthcare Consumables | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | 543.8 | 510.9 | 1,032.7 | 991.0 |
Operating Segments | Technologies | ||||
Revenue, Major Customer [Line Items] | ||||
Net sales | $ 478.2 | $ 187.1 | $ 761.9 | $ 363.3 |
SEGMENT INFORMATION - NET SALES, EXCLUDING PRECIOUS METAL CONTENT (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Revenue, Major Customer [Line Items] | ||||
Net Sales, excluding precious metal content | $ 1,004.7 | $ 674.7 | $ 1,759.2 | $ 1,306.2 |
Precious metal content of sales | 17.3 | 23.3 | 35.4 | 48.1 |
Net Sales, including precious metal content | 1,022.0 | 698.0 | 1,794.6 | 1,354.3 |
Operating Segments | Dental And Healthcare Consumables | ||||
Revenue, Major Customer [Line Items] | ||||
Net Sales, excluding precious metal content | 526.7 | 487.8 | 997.5 | 943.3 |
Net Sales, including precious metal content | 543.8 | 510.9 | 1,032.7 | 991.0 |
Operating Segments | Technologies | ||||
Revenue, Major Customer [Line Items] | ||||
Net Sales, excluding precious metal content | 478.0 | 186.9 | 761.7 | 362.9 |
Net Sales, including precious metal content | $ 478.2 | $ 187.1 | $ 761.9 | $ 363.3 |
SEGMENT INFORMATION - INTERSEGMENT NET SALES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Operating Segments | Dental And Healthcare Consumables | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 58.2 | 55.9 | 113.5 | 108.0 |
Operating Segments | Technologies | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 2.1 | 1.6 | 3.5 | 3.3 |
All Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 74.0 | 67.1 | 142.7 | 132.2 |
Intersegment Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ (134.3) | $ (124.6) | $ (259.7) | $ (243.5) |
SEGMENT INFORMATION - ASSETS (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 11,451.4 | $ 4,402.9 |
Operating Segments | Dental And Healthcare Consumables | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 2,160.5 | 1,776.5 |
Operating Segments | Technologies | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 7,068.4 | 951.2 |
All Other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 2,222.5 | $ 1,675.2 |
SEGMENT INFORMATION - ADDITIONAL INFORMATION (Detail) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016
customer
|
Jun. 30, 2015 |
Jun. 30, 2016
segment
customer
|
Jun. 30, 2015 |
|
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 2 | |||
Number of operating groups | 2 | |||
Customer Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Number of customers accounting for more than 10% of net sales | customer | 2 | 2 | ||
Dental Products | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of sales, professional dental products | 92.00% | 88.00% | 92.00% | 88.00% |
INVENTORIES - SUMMARY OF INVENTORY (Detail) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 327.5 | $ 218.2 |
Work-in-process | 76.4 | 52.3 |
Raw materials and supplies | 119.2 | 69.9 |
Inventory, net | $ 523.1 | $ 340.4 |
INVENTORIES - ADDITIONAL INFORMATION (Detail) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
LIFO inventory amount | $ 7.6 | $ 8.1 |
Inventory, LIFO reserve | 6.5 | 6.6 |
Inventory valuation reserve | $ 61.2 | $ 36.3 |
BENEFIT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Pension Plans, Defined Benefit | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 3.9 | $ 4.3 | $ 7.7 | $ 8.7 |
Interest cost | 2.0 | 1.8 | 3.8 | 3.7 |
Expected return on plan assets | (1.2) | (1.4) | (2.4) | (2.8) |
Amortization of prior service credit | (0.1) | 0.0 | (0.1) | (0.1) |
Amortization of net actuarial loss | 1.3 | 2.0 | 2.5 | 4.0 |
Net periodic benefit cost | 5.9 | 6.7 | 11.5 | 13.5 |
Other Postretirement Benefit Plans, Defined Benefit | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0.1 | 0.1 | 0.2 | 0.2 |
Interest cost | 0.1 | 0.2 | 0.3 | 0.3 |
Amortization of net actuarial loss | 0.1 | 0.0 | 0.1 | 0.1 |
Net periodic benefit cost | $ 0.3 | $ 0.3 | $ 0.6 | $ 0.6 |
BENEFIT PLANS - INFORMATION RELATED TO THE CONTRIBUTIONS TO THE COMPANY'S BENEFIT PLANS (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Pension Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actual contributions through June 30, 2016 | $ 6.6 |
Projected contributions for the remainder of the year | 8.1 |
Total projected contributions | 14.7 |
Other Postretirement Benefit Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actual contributions through June 30, 2016 | 0.1 |
Projected contributions for the remainder of the year | 0.6 |
Total projected contributions | $ 0.7 |
RESTRUCTURING AND OTHER COSTS - PROVISIONS AND ADJUSTMENTS AND AMOUNTS APPLIED FOR ALL PLANS BY SEGMENT (Detail) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 41.1 |
Provisions | 7.0 |
Amounts applied | (14.3) |
Change in estimates | (0.7) |
Ending Balance | 33.1 |
All Other | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 1.1 |
Provisions | 0.7 |
Amounts applied | (0.4) |
Change in estimates | (0.3) |
Ending Balance | 1.1 |
Operating Segments | Dental And Healthcare Consumables | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 35.7 |
Provisions | 4.2 |
Amounts applied | (10.9) |
Change in estimates | (0.3) |
Ending Balance | 28.7 |
Operating Segments | Technologies | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 4.3 |
Provisions | 2.1 |
Amounts applied | (3.0) |
Change in estimates | (0.1) |
Ending Balance | $ 3.3 |
RESTRUCTURING AND OTHER COSTS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Restructuring and Related Activities [Abstract] | ||||
Restructuring, incurred cost | $ 3.6 | $ 38.9 | $ 7.7 | $ 44.3 |
FINANCIAL INSTRUMENTS AND DERIVATIVES - CASH FLOW HEDGES (Details) - Jun. 30, 2016 - Cash Flow Hedging - Designated as Hedging Instrument $ in Millions |
USD ($) |
CHF (SFr) |
---|---|---|
Derivative [Line Items] | ||
Aggregate Notional Amount | $ 504.8 | |
Aggregate Notional Amount Maturing within 12 Months | 307.4 | |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 316.5 | |
Aggregate Notional Amount Maturing within 12 Months | 240.7 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 188.1 | SFr 65,000,000 |
Aggregate Notional Amount Maturing within 12 Months | 66.5 | |
Commodity Contract | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | 0.2 | |
Aggregate Notional Amount Maturing within 12 Months | $ 0.2 |
FINANCIAL INSTRUMENTS AND DERIVATIVES - NET INVESTMENT HEDGES (Details) - Net Investment Hedging - Designated as Hedging Instrument - Foreign Exchange Contract $ in Millions |
Jun. 30, 2016
USD ($)
|
---|---|
Derivative [Line Items] | |
Aggregate Notional Amount | $ 559.3 |
Aggregate Notional Amount Maturing within 12 Months | $ 526.3 |
FINANCIAL INSTRUMENTS AND DERIVATIVES - GAIN (LOSS) ON AOCI - NET INVESTMENT HEDGES (Details) - Net Investment Hedging - Designated as Hedging Instrument - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Derivative [Line Items] | ||||
Derivative, gain (loss) recognized in Other Comprehensive Income | $ 13.2 | $ (15.8) | $ (17.2) | $ (3.3) |
Derivative, gain (loss) recognized in income (expense) | 2.2 | 1.2 | 4.7 | 0.9 |
Foreign Exchange Contract | ||||
Derivative [Line Items] | ||||
Derivative, gain (loss) recognized in Other Comprehensive Income | 13.2 | (15.8) | (17.2) | (3.3) |
Foreign Exchange Contract | Other Expense (Income), Net | ||||
Derivative [Line Items] | ||||
Derivative, gain (loss) recognized in income (expense) | $ 2.2 | $ 1.2 | $ 4.7 | $ 0.9 |
FINANCIAL INSTRUMENTS AND DERIVATIVES - FAIR VALUE HEDGES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Interest Rate Swap | Fair Value Hedging | Designated as Hedging Instrument | Interest Expense | ||||
Derivative [Line Items] | ||||
Derivative, gain (loss) recognized in income (expense) | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.2 |
FAIR VALUE MEASUREMENT - LEVEL 3 LIABILITIES WITH UNOBSERVABLE INPUTS (Details) $ in Millions |
4 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, February 29, 2016 | $ 7.6 |
Effect of exchange rate changes | (0.2) |
Balance at June 30, 2016 | 7.5 |
Other Expense (Income) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Reported in Other expense (income), net | $ 0.1 |
INCOME TAXES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2016 |
|
Income Tax Disclosure [Abstract] | ||
Tax benefit from release of valuation allowance | $ 78.6 | |
Tax expense related to prior years tax matters | $ 4.1 | $ 0.5 |
COMMITMENTS AND CONTINGENCIES - ADDITIONAL INFORMATION (Detail) |
1 Months Ended | 3 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 20, 2014
employee
|
Apr. 30, 2016
lawsuit
|
Dec. 31, 2015
lawsuit
|
Jan. 31, 2014 |
Dec. 31, 2006 |
Jun. 30, 2004 |
Jun. 30, 2016 |
Oct. 05, 2015
lawsuit
|
|
San Francisco County California | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Trial or alternative dispute resolution | On June 18, 2004, Marvin Weinstat, DDS and Richard Nathan, DDS filed a class action suit in San Francisco County, California alleging that the Company misrepresented that its Cavitron® ultrasonic scalers are suitable for use in oral surgical procedures. | |||||||
Lawsuit filing date | June 18, 2004 | |||||||
Name of plaintiff | Marvin Weinstat, DDS and Richard Nathan, DDS | |||||||
Eastern District Of Pennsylvania | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Trial or alternative dispute resolution | On January 20, 2014, the Company was served with a qui tam complaint filed by two former and one current employee of the Company under the Federal False Claims Act and equivalent state and city laws. The lawsuit was previously under seal in the U.S. District Court for the Eastern District of Pennsylvania | On December 12, 2006, a Complaint was filed by Carole Hildebrand, DDS and Robert Jaffin, DDS in the Eastern District of Pennsylvania (the Plaintiffs subsequently added Dr. Mitchell Goldman as a named class representative). The case was filed by the same law firm that filed the Weinstat case in California. The Complaint asserts putative class action claims on behalf of dentists located in New Jersey and Pennsylvania. | ||||||
Lawsuit filing date | Jan. 20, 2014 | December 12, 2006 | ||||||
Name of plaintiff | Former and Current Employees | Carole Hildebrand, DDS and Robert Jaffin, DDS and Dr. Mitchell Goldman | ||||||
Sirona Dental Shareholders Case | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Trial or alternative dispute resolution | On October 2, 2015 and October 5, 2015, the Company and its wholly-owned subsidiary Dawkins Merger Sub Inc. (“Merger Sub”) were served with two separate putative class action complaints filed in the Court of Chancery of the State of Delaware by purported stockholders of Sirona Dental Systems, Inc. (“Sirona”) against the members of Sirona’s Board of Directors, the Company, and Merger Sub. | |||||||
Former Employee | Eastern District Of Pennsylvania | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Number of plaintiffs | employee | 2 | |||||||
Employee | Eastern District Of Pennsylvania | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Number of plaintiffs | employee | 1 | |||||||
Class Action Lawsuit, Sirona Merger | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Number of pending claims | lawsuit | 2 | |||||||
Number of cases withdrawn | lawsuit | 1 | 1 |
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