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RESTRUCTURING AND OTHER COSTS
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND OTHER COSTS RESTRUCTURING AND OTHER COSTS
Restructuring and other costs for the years ended December 31, 2024, 2023 and 2022 were recorded in the Consolidated Statements of Operations as follows:

Affected Line Item in the Consolidated Statements of OperationsYear Ended December 31,
(in millions)202420232022
Cost of products sold$10 $4 $— 
Selling, general, and administrative expenses32 3 — 
Restructuring costs53 67 14 
Total Restructuring and other costs$95 $74 $14 

Restructuring and other costs of $95 million were recorded in the year ended December 31, 2024, which consisted primarily of employee severance benefits and other costs related to the restructuring plans approved by the Board of Directors of the Company on July 29, 2024 (the “2024 Plan”) and on February 14, 2023 (the “2023 Plan”), as well as certain asset impairments resulting from the strategic actions related to the Byte aligners business beginning in October 2024 (the “Byte Realignment”).

Restructuring Plans

With the 2024 Plan, the Company seeks to improve operational performance and drive stockholder value creation. In connection with the 2024 Plan, which is expected to be substantially completed by the end of 2025, the Company anticipates a net reduction in the Company’s global workforce of approximately 2% to 4%. The proposed changes are subject to co-determination processes with employee representative groups in countries where required. Actions taken under the 2024 Plan seek to further streamline the Company’s operations and global footprint, as well as improve alignment of the Company’s cost structure with its strategic growth objectives. As of December 31, 2024, the Company has incurred $28 million in restructuring charges under the 2024 Plan since its inception. In total, the Company expects to incur between $35 million and $50 million in non-recurring restructuring charges under the 2024 Plan, primarily related to employee transition, severance payments, and employee benefits, which are expected to be expensed and paid in cash by the end of 2025.

With the 2023 Plan, the Company sought to restructure the business through a new operating model with five global business units, optimize central functions and overall management infrastructure, and implement other efforts aimed at cost savings. The 2023 Plan’s annual cost savings target of $200 million has been substantially met, with the benefits mostly offset in the short term by additional investments in sales personnel, the Company’s new global Enterprise Resource Planning (“ERP”) system, and other transformation initiatives. As of December 31, 2024, the Company has incurred $87 million in restructuring charges under the 2023 Plan since its inception, primarily related to employee transition, severance payments, employee benefits, and facility closure costs, and $20 million in other non-recurring costs related to restructuring activities, which mostly consist of consulting, legal, and other professional service fees. Remaining restructuring charges attributable to the 2023 Plan are not expected to be material.

The estimates of the charges and expenditures that the Company expects to incur in connection with the 2024 Plan, and the timing thereof, are subject to several assumptions, including local law requirements in various jurisdictions and co-determination aspects in countries where required. Actual amounts may differ materially from estimates. In addition, the Company may incur additional charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the 2024 Plan.
The liabilities associated with the Company’s restructuring plans are recorded in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. Activity in the Company’s restructuring accruals at December 31, 2024 was as follows:
Severance
(in millions)2022 and Prior Plans2023 Plans2024 PlansTotal
Balance at December 31, 2023$2 $37 $— $39 
Provisions and adjustments1 23 30 54 
Amounts applied(2)(44)(11)(57)
Change in estimates— (4)— (4)
Balance at December 31, 2024$1 $12 $19 $32 

Other Restructuring Costs
(in millions)2022 and Prior Plans2023 Plans2024 PlansTotal
Balance at December 31, 2023$1 $— $— $1 
Provisions and adjustments— 3 — 3 
Amounts applied— (3)— (3)
Balance at December 31, 2024$1 $— $— $1 


The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows:
(in millions)December 31, 2023
Provisions and
 Adjustments
Amounts
Applied
Change in EstimatesDecember 31, 2024
Connected Technology Solutions$13 $23 $(25)$(2)$9 
Essential Dental Solutions17 15 (20)(1)11 
Orthodontic and Implant Solutions9 11 (11)— 9 
Wellspect Healthcare1 5 (2)(1)3 
All Other— 3 (2)— 1 
Total$40 $57 $(60)$(4)$33 


The Company’s restructuring accruals at December 31, 2023 were as follows:
Severances
(in millions)2021 and Prior Plans2022 Plans2023 PlansTotal
Balance at December 31, 2022$4 $3 $— $7 
Provisions and adjustments— 2 62 64 
Amounts applied(2)(3)(24)(29)
Change in estimates— (2)(1)(3)
Balance at December 31, 2023$2 $— $37 $39 
Other Restructuring Costs
(in millions)2021 and Prior Plans2022 Plans2023 PlansTotal
Balance at December 31, 2022$— $1 $— $1 
Provisions and adjustments1 — 9 10 
Amounts applied(1)— (8)(9)
Change in estimates— — (1)(1)
Balance at December 31, 2023$— $1 $— $1 

The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows:
(in millions)December 31, 2022
Provisions and
 Adjustments
Amounts
Applied
Change in EstimatesDecember 31, 2023
Connected Technology Solutions$3 $18 $(8)$— $13 
Essential Dental Solutions4 25 (10)(2)17 
Orthodontic and Implant Solutions1 16 (7)(1)9 
Wellspect Healthcare— 5 (3)(1)1 
All Other— 10 (10)— — 
Total$8 $74 $(38)$(4)$40 

Byte Realignment

The changes to the Byte clear aligners business disclosed in Note 6, Segment and Geographic Information, have resulted in significant reductions in revenue forecasts and a triggering event in the fourth quarter of 2024 to evaluate the recoverability of assets attributable to Byte. The Company recorded long-term tangible asset charges, which include production equipment and capitalized software, as well as working capital for certain inventory and customer receivables specific to Byte. Additionally, the Company recorded a full impairment of the Byte trademark intangible asset.

In addition to these impairments, the Company recorded a full accrual for expected customer refunds and other reimbursement payments stemming from the cessation of sales, which resulted in a $35 million reduction to net sales, of which $13 million was paid during the three months ended December 31, 2024, with the remainder expected to be paid in 2025.

The impact of these charges related to the Byte Realignment was as follows:

Location in the Consolidated Statements of Operations
(in millions)December 31, 2024
Net sales
   Change in refund estimate$(35)
Cost of products sold
   Inventory reserve(8)
Selling, general, and administrative expenses
   Intangible asset impairment - trademark(152)
   Property, plant and equipment write-off(17)
   Accounts receivable reserve and prepaid write-off(10)
Total impact on operating loss$(222)