RESTRUCTURING AND OTHER COSTS

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

During the three and nine months ended September 30, 2021, the Company recorded net restructuring and other costs of $6 million and $14 million, respectively, which consists of severance and other restructuring costs of $6 million and $17 million, respectively, offset by adjustments to inventory reserves of $3 million for the nine months ended September 30, 2021.

During the three and nine months ended September 30, 2020, the Company recorded restructuring and other costs of $52 million and $96 million, respectively, which consists of inventory write-downs of $25 million for both the three and nine months ended, severance costs of $16 million and $21 million, respectively, accelerated depreciation of $9 million for both the three and nine months ended, and asset impairments of $2 million and $41 million, respectively.

The details of total restructuring and other costs for the three and nine months ended September 30, 2021 and 2020 were as follows:


Affected Line Item in the Consolidated Statements of Operations	Three Months Ended				Nine Months Ended
(in millions)	2021		2020		2021		2020

Cost of products sold	$	—	$	33	$	(3)	$	33
Selling, general, and administrative expenses	3		1		6		1
Restructuring and other costs	3		18		11		62

Total restructuring and other costs	$	6	$	52	$	14	$	96

Restructuring Programs and Accruals

The Company announced on August 6, 2020 that it will exit its traditional orthodontics business as well as both exit and restructure certain portions of its laboratory business (the “2020 Plan”). The traditional orthodontics business is part of the Technologies & Equipment segment and the laboratory business is part of the Consumables segment. The Company is exiting several of its facilities and reducing its workforce by approximately 4% to 5%. The Company expects to record restructuring charges in a range of $60 million to $70 million for inventory write-downs, severance costs, fixed asset write-offs, and other facility closure costs. The Company recorded total expenses of approximately $58 million related to these actions which consists primarily of inventory write-downs of approximately $28 million, accelerated depreciation of approximately $14 million, and severance costs of approximately $11 million. For the nine months ended September 30, 2021, the Company made a $3 million adjustment related to inventory reserves and recorded severance costs of $2 million. The Company expects nearly all of the remaining restructuring charges to be completed by the first quarter of 2022.

The Company’s restructuring accruals at September 30, 2021 were as follows:


	Severance
(in millions)	2019 and Prior Plans		2020 Plans		2021 Plans		Total

Balance at December 31, 2020	$	12	$	17	$	—	$	29
Provisions	2		4		7		13
Amounts applied	(8)		(11)		(3)		(22)
Change in estimates	(1)		(5)		—		(6)
Balance at September 30, 2021	$	5	$	5	$	4	$	14


	Other Restructuring Costs
(in millions)	2019 and Prior Plans		2020 Plans		2021 Plans		Total

Balance at December 31, 2020	$	3	$	2	$	—	$	5
Provisions	2		3		3		8
Amounts applied	(2)		(4)		(2)		(8)
Change in estimate	—		(1)		—		(1)
Balance at September 30, 2021	$	3	$	—	$	1	$	4

The cumulative amounts for the provisions and adjustments and amounts applied for all the plans by segment were as follows:


(in millions)	December 31, 2020		Provisions		Amounts Applied		Change in Estimates		September 30, 2021

Technologies & Equipment	$	16	$	6	$	(13)	$	(5)	$	4
Consumables	17		12		(14)		(2)		13
All Other	1		3		(3)		—		1
Total	$	34	$	21	$	(30)	$	(7)	$	18

The associated restructuring liabilities are recorded in Accrued liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets.