Discontinued Operations

9 Months Ended

Sep. 29, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

On December 31, 2021, the Company sold substantially all of the KaVo Treatment Unit and Instrument Business (the “Divestiture”) to planmeca Verwaltungs Gmbh, Germany (“Planmeca”), pursuant to the master sale and purchase agreement (the “Purchase Agreement”) among the Company, Planmeca, and Planmeca Oy, as guarantor. However, the transfer of assets for Deferred Local Closing countries was not executed and closed until 2022. As of December 31, 2022, all Deferred Local Closings were completed and the Company received total net cash consideration of $386.4 million in accordance with the terms of the Purchase Agreement.

For the nine months ended September 30, 2022, the Company recognized an earnout payment of $30.0 million. As all Deferred Local Closings were completed as of December 31, 2022, there are no discontinued operations reported for the three and nine months ended September 29, 2023.

The operating results of the Divestiture for the three and nine months ended September 30, 2022 are reflected in the Condensed Consolidated Statements of Operations within income from discontinued operations, net of tax as follows ($ in millions):

	Three Months Ended		Nine Months Ended
	September 30, 2022		September 30, 2022
Sales	$	2.8	$	11.7
Cost of sales	2.1		9.1
Gross profit	0.7		2.6
Operating expenses:
Selling, general and administrative	1.1		3.2
Research and development	—		—
Operating loss	(0.4)		(0.6)
Income tax expense	—		—
Loss from discontinued operations	(0.4)		(0.6)
(Loss) gain on sale of discontinued operations, net of tax	(1.6)		5.7
Net (loss) income from discontinued operations	$	(2.0)	$	5.1