Delaware
|
39-1434669
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
221 West Philadelphia Street, York,
PA
|
17405-0872
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Yes
|
x
|
No
|
¨
|
Yes
|
x
|
No
|
¨
|
Large
accelerated filer
|
x
|
Accelerated
filer
|
¨
|
Non-accelerated
filer
|
¨
|
Smaller
reporting company
|
¨
|
Yes
|
¨
|
No
|
x
|
Page
|
||||
PART I
|
FINANCIAL INFORMATION
|
|||
Item
1
|
Financial
Statements (unaudited)
|
|||
Consolidated
Statements of Operations
|
3
|
|||
Consolidated
Balance Sheets
|
4
|
|||
Consolidated
Statements of Cash Flows
|
5
|
|||
Consolidated
Statements of Changes in Equity
|
6
|
|||
Notes
to Unaudited Interim Consolidated Financial Statements
|
7
|
|||
Item
2
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
27
|
||
Item
3
|
Quantitative
and Qualitative Disclosures About Market Risk
|
40
|
||
Item
4
|
Controls
and Procedures
|
40
|
||
PART II
|
OTHER INFORMATION
|
|||
Item
1
|
Legal
Proceedings
|
41
|
||
Item
1A
|
Risk
Factors
|
41
|
||
Item
2
|
Unregistered
Sales of Securities and Use of Proceeds
|
41
|
||
Item
4
|
Submission
of Matters to a Vote of Security Holders
|
41
|
||
Item
6
|
Exhibits
|
41
|
||
Signatures
|
42
|
|||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net
sales
|
$ | 541,815 | $ | 531,203 | $ | 1,652,845 | $ | 1,590,984 | ||||||||
Cost
of products sold
|
269,001 | 259,473 | 810,399 | 767,854 | ||||||||||||
Gross
profit
|
272,814 | 271,730 | 842,446 | 823,130 | ||||||||||||
Selling,
general and administrative expenses ("SG&A")
|
182,057 | 177,579 | 552,474 | 539,383 | ||||||||||||
Restructuring
and other costs
|
338 | 1,210 | 5,261 | 5,905 | ||||||||||||
Operating
income
|
90,419 | 92,941 | 284,711 | 277,842 | ||||||||||||
Other
income and expenses:
|
||||||||||||||||
Interest
expense
|
5,999 | 5,456 | 18,406 | 16,877 | ||||||||||||
Interest
income
|
(1,268 | ) | (858 | ) | (2,883 | ) | (4,326 | ) | ||||||||
Other
expense (income), net
|
585 | 491 | 2,252 | 1,359 | ||||||||||||
Income
before income taxes
|
85,103 | 87,852 | 266,936 | 263,932 | ||||||||||||
Provision
for income taxes
|
21,288 | 19,999 | 67,585 | 65,570 | ||||||||||||
Net
income
|
63,815 | 67,853 | 199,351 | 198,362 | ||||||||||||
Less:
Net income (loss) attributable to the noncontrolling
interests
|
162 | 370 | 1,470 | (1,062 | ) | |||||||||||
Net
income attributable to DENTSPLY International
|
$ | 63,653 | $ | 67,483 | $ | 197,881 | $ | 199,424 | ||||||||
Earnings
per common share:
|
||||||||||||||||
Basic
|
$ | 0.45 | $ | 0.45 | $ | 1.37 | $ | 1.34 | ||||||||
Diluted
|
$ | 0.44 | $ | 0.45 | $ | 1.35 | $ | 1.33 | ||||||||
Cash
dividends declared per common share
|
$ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 | ||||||||
Weighted
average common shares outstanding:
|
||||||||||||||||
Basic
|
142,501 | 148,547 | 144,670 | 148,546 | ||||||||||||
Diluted
|
144,063 | 150,638 | 146,679 | 150,077 |
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Assets
|
||||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents
|
$ | 534,243 | $ | 450,348 | ||||
Accounts
and notes receivables-trade, net
|
366,789 | 348,684 | ||||||
Inventories,
net
|
318,071 | 291,640 | ||||||
Prepaid
expenses and other current assets
|
112,454 | 127,124 | ||||||
Total
Current Assets
|
1,331,557 | 1,217,796 | ||||||
Property,
plant and equipment, net
|
423,802 | 439,619 | ||||||
Identifiable
intangible assets, net
|
79,701 | 89,086 | ||||||
Goodwill,
net
|
1,304,938 | 1,312,596 | ||||||
Other
noncurrent assets, net
|
55,158 | 28,835 | ||||||
Total
Assets
|
$ | 3,195,156 | $ | 3,087,932 | ||||
Liabilities
and Equity
|
||||||||
Current
Liabilities:
|
||||||||
Accounts
payable
|
$ | 100,663 | $ | 100,847 | ||||
Accrued
liabilities
|
224,624 | 249,169 | ||||||
Income
taxes payable
|
19,335 | 12,366 | ||||||
Notes
payable and current portion of long-term debt
|
7,290 | 82,174 | ||||||
Total
Current Liabilities
|
351,912 | 444,556 | ||||||
Long-term
debt
|
592,376 | 387,151 | ||||||
Deferred
income taxes
|
74,238 | 72,524 | ||||||
Other
noncurrent liabilities
|
300,074 | 276,743 | ||||||
Total
Liabilities
|
1,318,600 | 1,180,974 | ||||||
Commitments
and contingencies
|
||||||||
Equity:
|
||||||||
Preferred
stock, $.01 par value; .25 million shares authorized; no shares
issued
|
- | - | ||||||
Common
stock, $.01 par value; 200.0 million shares authorized; 162.8 million
shares issued at September 30, 2010 and December 31, 2009
|
1,628 | 1,628 | ||||||
Capital
in excess of par value
|
202,482 | 195,495 | ||||||
Retained
earnings
|
2,258,531 | 2,083,459 | ||||||
Accumulated
other comprehensive income (loss)
|
41,820 | 83,542 | ||||||
Treasury
stock, at cost, 20.7 million shares at September 30, 2010 and 15.8 million
shares at December 31, 2009
|
(700,980 | ) | (532,019 | ) | ||||
Total
DENTSPLY International Equity
|
1,803,481 | 1,832,105 | ||||||
Noncontrolling
interests
|
73,075 | 74,853 | ||||||
Total
Equity
|
1,876,556 | 1,906,958 | ||||||
Total
Liabilities and Equity
|
$ | 3,195,156 | $ | 3,087,932 |
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
2010
|
2009
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 199,351 | $ | 198,362 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
|
43,022 | 40,118 | ||||||
Amortization
|
7,097 | 9,227 | ||||||
Deferred
income taxes
|
2,672 | 9,655 | ||||||
Share-based
compensation expense
|
14,769 | 14,778 | ||||||
Restructuring
and other costs - noncash
|
363 | 328 | ||||||
Excess
tax benefits from share-based compensation
|
(4,784 | ) | (2,921 | ) | ||||
Changes
in operating assets and liabilities, net of acquisitions:
|
||||||||
Accounts
and notes receivable-trade, net
|
(16,768 | ) | (23,166 | ) | ||||
Inventories,
net
|
(20,799 | ) | 10,670 | |||||
Prepaid
expenses and other current assets
|
(6,305 | ) | 248 | |||||
Accounts
payable
|
(2,390 | ) | (9,699 | ) | ||||
Accrued
liabilities
|
13,710 | 1,621 | ||||||
Income
taxes payable
|
10,395 | (546 | ) | |||||
Other,
net
|
8,557 | (3,311 | ) | |||||
Net
cash provided by operating activities
|
248,890 | 245,364 | ||||||
Cash
flows from investing activities:
|
||||||||
Capital
expenditures
|
(29,566 | ) | (43,282 | ) | ||||
Cash
paid for acquisitions of businesses, net of cash acquired
|
(21,997 | ) | (2,986 | ) | ||||
Liquidation
of short-term investments
|
- | 219 | ||||||
Expenditures
for identifiable intangible assets
|
(291 | ) | (128 | ) | ||||
Proceeds
from sale of property, plant and equipment, net
|
509 | 2,143 | ||||||
Net
cash used in investing activities
|
(51,345 | ) | (44,034 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Net
change in short-term borrowings
|
(10,367 | ) | (1,482 | ) | ||||
Cash
paid for treasury stock
|
(208,535 | ) | (21,253 | ) | ||||
Cash
dividends paid
|
(23,052 | ) | (22,383 | ) | ||||
Proceeds
from long-term borrowings
|
363,700 | - | ||||||
Payments
on long-term borrowings
|
(240,385 | ) | (57,150 | ) | ||||
Proceeds
from exercise of stock options
|
26,932 | 9,451 | ||||||
Excess
tax benefits from share-based compensation
|
4,784 | 2,921 | ||||||
Net
cash used in financing activities
|
(86,923 | ) | (89,896 | ) | ||||
Effect
of exchange rate changes on cash and cash equivalents
|
(26,727 | ) | 17,943 | |||||
Net
increase in cash and cash equivalents
|
83,895 | 129,377 | ||||||
Cash
and cash equivalents at beginning of period
|
450,348 | 203,991 | ||||||
Cash
and cash equivalents at end of period
|
$ | 534,243 | $ | 333,368 |
Capital in
|
Accumulated
Other
|
Total DENTSPLY
|
||||||||||||||||||||||||||||||
Common
|
Excess of
|
Retained
|
Comprehensive
|
Treasury
|
International
|
Noncontrolling
|
Total
|
|||||||||||||||||||||||||
Stock
|
Par Value
|
Earnings
|
Income (Loss)
|
Stock
|
Equity
|
Interests
|
Equity
|
|||||||||||||||||||||||||
Balance
at December 31, 2008
|
$ | 1,628 | $ | 187,154 | $ | 1,838,958 | $ | 39,612 | $ | (479,630 | ) | $ | 1,587,722 | $ | 71,691 | $ | 1,659,413 | |||||||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||||||||||
Net
income
|
- | - | 199,424 | - | - | 199,424 | (1,062 | ) | 198,362 | |||||||||||||||||||||||
Other
comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||||||||||
Foreign
currency translation adjustments
|
- | - | - | 76,518 | - | 76,518 | 4,567 | 81,085 | ||||||||||||||||||||||||
Net
loss on derivative financial instruments
|
- | - | - | (21,422 | ) | - | (21,422 | ) | - | (21,422 | ) | |||||||||||||||||||||
Unrecognized
losses and prior service pension cost, net
|
- | - | - | 431 | - | 431 | - | 431 | ||||||||||||||||||||||||
Comprehensive
Income
|
254,951 | 3,505 | 258,456 | |||||||||||||||||||||||||||||
Exercise
of stock options
|
- | (8,724 | ) | - | - | 18,175 | 9,451 | - | 9,451 | |||||||||||||||||||||||
Tax
benefit from stock options exercised
|
- | 2,921 | - | - | - | 2,921 | - | 2,921 | ||||||||||||||||||||||||
Share
based compensation expense
|
- | 14,778 | - | - | - | 14,778 | - | 14,778 | ||||||||||||||||||||||||
Funding
of Employee Stock Option Plan
|
- | (61 | ) | - | - | 1,408 | 1,347 | - | 1,347 | |||||||||||||||||||||||
Adjustment
from acquisitions
|
- | (388 | ) | - | - | - | (388 | ) | - | (388 | ) | |||||||||||||||||||||
Treasury
shares purchased
|
- | - | - | - | (21,253 | ) | (21,253 | ) | - | (21,253 | ) | |||||||||||||||||||||
RSU
dividends
|
- | 101 | (101 | ) | - | - | - | - | - | |||||||||||||||||||||||
Cash
dividends ($0.15 per share)
|
- | - | (22,274 | ) | - | - | (22,274 | ) | - | (22,274 | ) | |||||||||||||||||||||
Balance
at September 30, 2009
|
$ | 1,628 | $ | 195,781 | $ | 2,016,007 | $ | 95,139 | $ | (481,300 | ) | $ | 1,827,255 | $ | 75,196 | $ | 1,902,451 |
Capital in
|
Accumulated
Other
|
Total DENTSPLY
|
||||||||||||||||||||||||||||||
Common
|
Excess of
|
Retained
|
Comprehensive
|
Treasury
|
International
|
Noncontrolling
|
Total
|
|||||||||||||||||||||||||
Stock
|
Par Value
|
Earnings
|
Income (Loss)
|
Stock
|
Equity
|
Interests
|
Equity
|
|||||||||||||||||||||||||
Balance
at December 31, 2009
|
$ | 1,628 | $ | 195,495 | $ | 2,083,459 | $ | 83,542 | $ | (532,019 | ) | $ | 1,832,105 | $ | 74,853 | $ | 1,906,958 | |||||||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||||||||||
Net
income
|
- | - | 197,881 | - | - | 197,881 | 1,470 | 199,351 | ||||||||||||||||||||||||
Other
comprehensive income (loss), net of tax:
|
||||||||||||||||||||||||||||||||
Foreign
currency translation adjustments
|
- | - | - | (41,699 | ) | - | (41,699 | ) | (3,248 | ) | (44,947 | ) | ||||||||||||||||||||
Net
loss on derivative financial instruments
|
- | - | - | (322 | ) | - | (322 | ) | - | (322 | ) | |||||||||||||||||||||
Unrecognized
losses and prior service pension cost, net
|
- | - | - | 299 | - | 299 | - | 299 | ||||||||||||||||||||||||
Comprehensive
Income
|
156,159 | (1,778 | ) | 154,381 | ||||||||||||||||||||||||||||
Exercise
of stock options
|
- | (8,577 | ) | - | - | 35,509 | 26,932 | - | 26,932 | |||||||||||||||||||||||
Tax
benefit from stock options exercised
|
- | 4,784 | - | - | - | 4,784 | - | 4,784 | ||||||||||||||||||||||||
Share
based compensation expense
|
- | 14,769 | - | - | - | 14,769 | - | 14,769 | ||||||||||||||||||||||||
Funding
of Employee Stock Option Plan
|
- | 209 | - | - | 1,132 | 1,341 | - | 1,341 | ||||||||||||||||||||||||
Treasury
shares purchased
|
- | - | - | - | (208,535 | ) | (208,535 | ) | - | (208,535 | ) | |||||||||||||||||||||
RSU
distributions
|
- | (4,313 | ) | - | - | 2,933 | (1,380 | ) | - | (1,380 | ) | |||||||||||||||||||||
RSU
dividends
|
- | 115 | (115 | ) | - | - | - | - | - | |||||||||||||||||||||||
Cash
dividends ($0.15 per share)
|
- | - | (22,694 | ) | - | - | (22,694 | ) | - | (22,694 | ) | |||||||||||||||||||||
Balance
at September 30, 2010
|
$ | 1,628 | $ | 202,482 | $ | 2,258,531 | $ | 41,820 | $ | (700,980 | ) | $ | 1,803,481 | $ | 73,075 | $ | 1,876,556 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(in millions)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Stock
option expense
|
$ | 2.4 | $ | 3.1 | $ | 8.2 | $ | 9.0 | ||||||||
RSU
expense
|
1.8 | 1.6 | 5.6 | 4.8 | ||||||||||||
Total
stock based compensation expense
|
$ | 4.2 | $ | 4.7 | $ | 13.8 | $ | 13.8 | ||||||||
Total
related tax benefit
|
$ | 1.2 | $ | 1.4 | $ | 2.7 | $ | 4.0 |
Outstanding
|
Exercisable
|
|||||||||||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||||||||||
Average
|
Aggregate
|
Average
|
Aggregate
|
|||||||||||||||||||||
(in
thousands,
|
Exercise
|
Intrinsic
|
Exercise
|
Intrinsic
|
||||||||||||||||||||
except
per share data)
|
Shares
|
Price
|
Value
|
Shares
|
Price
|
Value
|
||||||||||||||||||
December
31, 2009
|
12,038 | $ | 28.34 | $ | 94,148 | 8,682 | $ | 26.78 | $ | 80,839 | ||||||||||||||
Granted
|
145 | 34.65 | ||||||||||||||||||||||
Exercised
|
(1,183 | ) | 22.76 | |||||||||||||||||||||
Forfeited
|
(162 | ) | 33.93 | |||||||||||||||||||||
September
30, 2010
|
10,838 | $ | 28.95 | $ | 51,226 | 7,611 | $ | 27.47 | $ | 44,527 |
Unvested Restricted Stock and Stock Dividend Units
|
||||||||
Weighted
Average
|
||||||||
Grant
Date
|
||||||||
(in
thousands, except per share data)
|
Shares
|
Fair Value
|
||||||
Unvested
at December 31, 2009
|
662 | $ | 31.94 | |||||
Granted
|
252 | 32.92 | ||||||
Vested
|
(207 | ) | 31.42 | |||||
Forfeited
|
(25 | ) | 32.87 | |||||
Unvested
at September 30, 2010
|
682 | $ | 32.43 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
(in
thousands)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Net
income
|
$ | 63,815 | $ | 67,853 | $ | 199,351 | $ | 198,362 | ||||||||
Other
comprehensive income:
|
||||||||||||||||
Foreign
currency translation adjustments
|
170,086 | 69,933 | (44,947 | ) | 81,085 | |||||||||||
Net
loss on derivative financial instruments
|
(63,994 | ) | (29,053 | ) | (322 | ) | (21,422 | ) | ||||||||
Amortization
of unrecognized losses and prior year service pension cost
|
(1,377 | ) | (697 | ) | 299 | 431 | ||||||||||
Total
other comprehensive income (loss)
|
104,715 | 40,183 | (44,970 | ) | 60,094 | |||||||||||
Total
comprehensive income
|
168,530 | 108,036 | 154,381 | 258,456 | ||||||||||||
Comprehensive
income (loss) attributable to the noncontrolling interests
|
7,379 | 3,692 | (1,778 | ) | 3,505 | |||||||||||
Comprehensive
income attributable to DENTSPLY International
|
$ | 161,151 | $ | 104,344 | $ | 156,159 | $ | 254,951 |
|
September 30,
|
December 31,
|
||||||
(in
thousands)
|
2010
|
2009
|
||||||
|
||||||||
Foreign
currency translation adjustments
|
$ | 178,417 | $ | 220,116 | ||||
Net
loss on derivative financial instruments
|
(114,122 | ) | (113,800 | ) | ||||
Unrecognized
losses and prior year service pension cost
|
(22,475 | ) | (22,774 | ) | ||||
|
$ | 41,820 | $ | 83,542 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Basic Earnings Per Common Share Computation
|
||||||||||||||||
(in thousands, except per share amounts)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Net
income attributable to DENTSPLY International
|
$ | 63,653 | $ | 67,483 | $ | 197,881 | $ | 199,424 | ||||||||
Common
shares outstanding
|
142,501 | 148,547 | 144,670 | 148,546 | ||||||||||||
Earnings
per common share - basic
|
$ | 0.45 | $ | 0.45 | $ | 1.37 | $ | 1.34 | ||||||||
Diluted
Earnings Per Common Share Computation
|
||||||||||||||||
(in
thousands, except per share amounts)
|
||||||||||||||||
Net
income attributable to DENTSPLY International
|
$ | 63,653 | $ | 67,483 | $ | 197,881 | $ | 199,424 | ||||||||
Common
shares outstanding
|
142,501 | 148,547 | 144,670 | 148,546 | ||||||||||||
Incremental
shares from assumed exercise of dilutive options
|
1,562 | 2,091 | 2,009 | 1,531 | ||||||||||||
Total
shares
|
144,063 | 150,638 | 146,679 | 150,077 | ||||||||||||
Earnings
per common share - diluted
|
$ | 0.44 | $ | 0.45 | $ | 1.35 | $ | 1.33 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(in thousands)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
U.S.,
Germany and Certain Other European Regions Consumable
Businesses
|
$ | 139,137 | $ | 142,983 | $ | 411,356 | $ | 407,495 | ||||||||
France,
U.K., Italy and Certain Other European Countries, CIS, Middle East,
Africa, Pacific Rim Businesses
|
114,338 | 112,196 | 346,224 | 336,184 | ||||||||||||
Canada/Latin
America/Endodontics/ Orthodontics
|
159,238 | 149,907 | 486,573 |
451,893
|
||||||||||||
Dental
Laboratory Business/
Implants/Non-Dental
|
129,809 | 126,759 | 411,185 | 397,610 | ||||||||||||
All
Other (a)
|
(707 | ) | (642 | ) | (2,493 | ) | (2,198 | ) | ||||||||
Total
|
$ | 541,815 | $ | 531,203 | $ | 1,652,845 | $ | 1,590,984 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(in thousands)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
U.S.,
Germany and Certain Other European Regions Consumable
Businesses
|
$ | 139,137 | $ | 142,983 | $ | 411,356 | $ | 407,495 | ||||||||
France,
U.K., Italy and Certain Other European Countries, CIS, Middle East,
Africa, Pacific Rim Businesses
|
106,499 | 104,008 | 320,606 | 311,098 | ||||||||||||
Canada/Latin
America/Endodontics/ Orthodontics
|
158,682 | 149,219 | 484,723 | 449,815 | ||||||||||||
Dental
Laboratory Business/ Implants/Non-Dental
|
90,735 | 98,250 | 296,309 | 304,784 | ||||||||||||
All
Other (a)
|
(707 | ) | (642 | ) | (2,493 | ) | (2,198 | ) | ||||||||
Total
excluding precious metal content
|
494,346 | 493,818 | 1,510,501 | 1,470,994 | ||||||||||||
Precious
metal content
|
47,469 | 37,385 | 142,344 | 119,990 | ||||||||||||
Total
including precious metal content
|
$ | 541,815 | $ | 531,203 | $ | 1,652,845 | $ | 1,590,984 |
Three Months Ended
|
Nine Months Ended | |||||||||||||||
(in thousands)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
U.S.,
Germany and Certain Other European Regions Consumable
Businesses
|
$ | 30,940 | $ | 27,759 | $ | 88,003 | $ | 74,488 | ||||||||
France,
U.K., Italy and Certain Other European Countries, CIS, Middle East,
Africa, Pacific Rim Businesses
|
3,396 | 2,590 | 12,052 | 9,037 | ||||||||||||
Canada/Latin
America/Endodontics/ Orthodontics
|
31,187 | 24,424 | 85,864 | 77,241 | ||||||||||||
Dental
Laboratory Business/ Implants/Non-Dental
|
25,355 | 27,823 | 82,950 | 82,972 | ||||||||||||
All
Other (b)
|
43,218 | 42,914 | 132,302 | 124,261 | ||||||||||||
Eliminations
|
(134,096 | ) | (125,510 | ) | (401,171 | ) | (367,999 | ) | ||||||||
Total
|
$ | - | $ | - | $ | - | $ | - |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(in thousands)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
U.S.,
Germany and Certain Other European Regions Consumable
Businesses
|
$ | 53,164 | $ | 49,034 | $ | 147,679 | $ | 125,780 | ||||||||
France,
U.K., Italy and Certain Other European Countries, CIS, Middle
East, Africa, Pacific Rim Businesses
|
3,892 | 3,743 | 9,299 | 11,268 | ||||||||||||
Canada/Latin
America/Endodontics/ Orthodontics
|
44,910 | 39,543 | 142,073 | 135,068 | ||||||||||||
Dental
Laboratory Business/ Implants/Non-Dental
|
14,691 | 19,032 | 59,648 | 65,222 | ||||||||||||
All
Other (a)
|
(25,900 | ) | (17,201 | ) | (68,727 | ) | (53,591 | ) | ||||||||
Segment
operating income
|
90,757 | 94,151 | 289,972 | 283,747 | ||||||||||||
Reconciling
Items:
|
||||||||||||||||
Restructuring
and other costs
|
(338 | ) | (1,210 | ) | (5,261 | ) | (5,905 | ) | ||||||||
Interest
expense
|
(5,999 | ) | (5,456 | ) | (18,406 | ) | (16,877 | ) | ||||||||
Interest
income
|
1,268 | 858 | 2,883 | 4,326 | ||||||||||||
Other
expense (income), net
|
(585 | ) | (491 | ) | (2,252 | ) | (1,359 | ) | ||||||||
Income
before income taxes
|
$ | 85,103 | $ | 87,852 | $ | 266,936 | $ | 263,932 |
Assets
|
||||||||
September 30,
|
December 31,
|
|||||||
(in thousands)
|
2010
|
2009
|
||||||
U.S.,
Germany and Certain Other European
|
||||||||
Regions
Consumable Businesses
|
$ | 604,496 | $ | 602,272 | ||||
France,
U.K., Italy and Certain Other European
|
||||||||
Countries,
CIS, Middle East, Africa,
|
||||||||
Pacific
Rim Businesses
|
395,587 | 388,831 | ||||||
Canada/Latin
America/Endodontics/
|
||||||||
Orthodontics
|
890,657 | 809,924 | ||||||
Dental
Laboratory Business/
|
||||||||
Implants/Non-Dental
|
933,908 | 973,764 | ||||||
All
Other (b)
|
370,508 | 313,141 | ||||||
Total
|
$ | 3,195,156 | $ | 3,087,932 |
September 30,
|
December 31,
|
|||||||
(in thousands)
|
2010
|
2009
|
||||||
Finished
goods
|
$ | 194,285 | $ | 178,721 | ||||
Work-in-process
|
54,976 | 53,056 | ||||||
Raw
materials and supplies
|
68,810 | 59,863 | ||||||
$ | 318,071 | $ | 291,640 |
Defined Benefit Plans
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
(in thousands)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Service
cost
|
$ | 2,017 | $ | 2,144 | $ | 5,950 | $ | 6,211 | ||||||||
Interest
cost
|
2,094 | 2,059 | 6,251 | 5,957 | ||||||||||||
Expected
return on plan assets
|
(1,179 | ) | (1,012 | ) | (3,447 | ) | (2,951 | ) | ||||||||
Amortization
of transition obligation
|
32 | 61 | 91 | 177 | ||||||||||||
Amortization
of prior service cost
|
19 | 34 | 63 | 103 | ||||||||||||
Amortization
of net loss
|
247 | 423 | 722 | 1,241 | ||||||||||||
Net
periodic benefit cost
|
$ | 3,230 | $ | 3,709 | $ | 9,630 | $ | 10,738 |
Other Postretirement Plans
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
(in thousands)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Service
cost
|
$ | 14 | $ | 13 | $ | 43 | $ | 40 | ||||||||
Interest
cost
|
152 | 156 | 458 | 467 | ||||||||||||
Amortization
of net loss
|
69 | 50 | 206 | 151 | ||||||||||||
Net
periodic benefit cost
|
$ | 235 | $ | 219 | $ | 707 | $ | 658 |
Pension
|
Other
Postretirement
|
|||||||
(in thousands)
|
Benefits
|
Benefits
|
||||||
Actual
at September 30, 2010
|
$ | 5,677 | $ | 68 | ||||
Projected
for the remainder of the year
|
3,049 | 1,039 | ||||||
Total
for year
|
$ | 8,726 | $ | 1,107 |
Severance
|
||||||||||||||||
2008 and
|
||||||||||||||||
(in thousands)
|
Prior Plans
|
2009 Plans
|
2010 Plans
|
Total
|
||||||||||||
Balance
at December 31, 2009
|
$ | 5,301 | $ | 3,240 | $ | - | $ | 8,541 | ||||||||
Provisions
and adjustments
|
(127 | ) | - | 1,037 | 910 | |||||||||||
Amounts
applied
|
(2,288 | ) | (1,655 | ) | (1,014 | ) | (4,957 | ) | ||||||||
Balance
at September 30, 2010
|
$ | 2,886 | $ | 1,585 | $ | 23 | $ | 4,494 |
Lease/Contract Terminations
|
||||||||
2008 and
|
||||||||
(in thousands)
|
Prior Plans
|
Total
|
||||||
Balance
at December 31, 2009
|
$ | 1,093 | $ | 1,093 | ||||
Provisions
and adjustments
|
- | - | ||||||
Amounts
applied
|
(65 | ) | (65 | ) | ||||
Balance
at September 30, 2010
|
$ | 1,028 | $ | 1,028 |
Other Restructuring Costs
|
||||||||||||||||
2008 and
|
||||||||||||||||
(in thousands)
|
Prior Plans
|
2009 Plans
|
2010 Plans
|
Total
|
||||||||||||
Balance
at December 31, 2009
|
$ | 112 | $ | 16 | $ | - | $ | 128 | ||||||||
Provisions
and adjustments
|
45 | 172 | 82 | 299 | ||||||||||||
Amounts
applied
|
(67 | ) | (188 | ) | (82 | ) | (337 | ) | ||||||||
Balance
at September 30, 2010
|
$ | 90 | $ | - | $ | - | $ | 90 |
December 31,
|
Provisions and
|
Amounts
|
September 30,
|
|||||||||||||
(in thousands)
|
2009
|
Adjustments
|
Applied
|
2010
|
||||||||||||
United
States, Germany and Certain
|
||||||||||||||||
Other
European Regions
|
||||||||||||||||
Consumable
Businesses
|
$ | 1,245 | $ | 472 | $ | (529 | ) | $ | 1,188 | |||||||
France,
U.K., Italy and Certain
|
||||||||||||||||
Other
European Countries, CIS, Middle
|
||||||||||||||||
East,
Africa, Pacific Rim Businesses
|
84 | 212 | (212 | ) | 84 | |||||||||||
Canada/Latin
America/
|
||||||||||||||||
Endodontics/Orthodontics
|
639 | - | (639 | ) | - | |||||||||||
Dental
Laboratory Business/
|
||||||||||||||||
Implants/Non-Dental
|
7,794 | 525 | (3,979 | ) | 4,340 | |||||||||||
$ | 9,762 | $ | 1,209 | $ | (5,359 | ) | $ | 5,612 |
Notional Amounts Maturing in the Year
|
Fair Value
Net Asset
(Liability)
|
|||||||||||||||
Foreign Exchange Forward Contracts
|
2010
|
2011
|
2012
|
September
30,
2010
|
||||||||||||
(in
thousands)
|
||||||||||||||||
Forward
sale, 11.7 million Australian dollars
|
$ | 4,951 | $ | 5,528 | $ | 786 | $ | (532 | ) | |||||||
Forward
purchase, 5.5 million British pounds
|
(3,250 | ) | (5,364 | ) | - | 72 | ||||||||||
Forward
sale, 23.7 million Canadian dollars
|
5,499 | 15,887 | 1,665 | 131 | ||||||||||||
Forward
sale, 5.1 million Danish kroner
|
935 | - | - | 9 | ||||||||||||
Forward
purchase, 0.9 million euros
|
(1,189 | ) | - | - | 640 | |||||||||||
Forward
sale, 9.7 million euros
|
- | 13,154 | - | 897 | ||||||||||||
Forward
sale, 439.9 million Japanese yen
|
5,271 | - | - | 409 | ||||||||||||
Forward
purchase, 313.4 million Japanese yen
|
- | (3,756 | ) | - | 401 | |||||||||||
Forward
sale, 115.1 million Mexican pesos
|
9,135 | - | - | 97 | ||||||||||||
Forward
purchase, 1.0 million Norwegian kroner
|
(173 | ) | - | - | (2 | ) | ||||||||||
Forward
sale, 2.0 million Singapore dollars
|
1,534 | - | - | 55 | ||||||||||||
Forward
sale, 1.2 billion South Korean won
|
1,024 | - | - | 48 | ||||||||||||
Forward
purchase, 42.0 million Swiss francs
|
(42,805 | ) | - | - | 301 | |||||||||||
Total
foreign exchange forward contracts
|
$ | (19,068 | ) | $ | 25,449 | $ | 2,451 | $ | 2,526 |
Notional
Amounts Maturing in the Year
|
Fair
Value Net
Asset (Liability)
|
|||||||||||||||||||||||
Interest
Rate Swaps
|
2010
|
2011
|
2012
|
2013
|
2014
and
Beyond
|
September
30,
2010
|
||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||||
Euro
|
$ | 322 | $ | 1,286 | $ | 1,286 | $ | 1,286 | $ | 4,180 | $ | (817 | ) | |||||||||||
Japanese
yen
|
- | - | 150,410 | - | - | (2,400 | ) | |||||||||||||||||
Swiss
francs
|
- | - | 66,266 | - | - | (3,521 | ) | |||||||||||||||||
Total
interest rate swaps
|
$ | 322 | $ | 1,286 | $ | 217,962 | $ | 1,286 | $ | 4,180 | $ | (6,738 | ) |
Notional Amounts Maturing
in the Year
|
Fair Value Net
|
|||||||||||
Asset (Liability)
|
||||||||||||
Commodity
Contracts
|
2010
|
2011
|
September
30,
2010
|
|||||||||
(in
thousands)
|
||||||||||||
Silver
swap - U.S. dollar
|
$ | (254 | ) | $ | (127 | ) | $ | 94 | ||||
Platinum
swap - U.S. dollar
|
(55 | ) | - | 12 | ||||||||
Total
commodity contracts
|
$ | (309 | ) | $ | (127 | ) | $ | 106 |
Notional
Amounts Maturing in the Year
|
Fair
Value
Net
Asset
(Liability)
|
|||||||||||||||||||
Cross
Currency Basis Swaps
|
2010
|
2011
|
2012
|
2013
|
September
30,
2010
|
|||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Swiss
franc 592.5 million @ 1.17 pay CHF three month LIBOR rec. USD three
month LIBOR
|
$ | - | $ | 81,966 | $ | 57,702 | $ | 464,369 | $ | (97,057 | ) | |||||||||
Euros
358.0 million @ $1.17 pay EUR three month LIBOR rec. USD three
month LIBOR
|
147,069 | - | - | 340,438 | (67,578 | ) | ||||||||||||||
Total
cross currency basis swaps
|
$ | 147,069 | $ | 81,966 | $ | 57,702 | $ | 804,807 | $ | (164,635 | ) |
September 30, 2010
|
||||||||||||||||
Prepaid
|
||||||||||||||||
(in thousands)
|
Expenses
|
Other
|
Other
|
|||||||||||||
and Other
|
Noncurrent
|
Accrued
|
Noncurrent
|
|||||||||||||
Designated as Hedges
|
Current Assets
|
Assets, Net
|
Liabilities
|
Liabilities
|
||||||||||||
Foreign
exchange forward contracts
|
$ | 1,824 | $ | 248 | $ | 199 | $ | 51 | ||||||||
Commodity
contracts
|
106 | - | - | - | ||||||||||||
Interest
rate swaps
|
- | 172 | 5,419 | 674 | ||||||||||||
Cross
currency basis swaps
|
- | - | 20,348 | 144,287 | ||||||||||||
Total
|
$ | 1,930 | $ | 420 | $ | 25,966 | $ | 145,012 | ||||||||
Not
Designated as Hedges
|
||||||||||||||||
Foreign
exchange forward contracts
|
$ | 1,138 | $ | - | $ | 434 | $ | - | ||||||||
Interest
rate swaps
|
- | - | 123 | 694 | ||||||||||||
Total
|
$ | 1,138 | $ | - | $ | 557 | $ | 694 |
December 31, 2009
|
||||||||||||||||
Prepaid
|
||||||||||||||||
(in thousands)
|
Expenses
|
Other
|
Other
|
|||||||||||||
and Other
|
Noncurrent
|
Accrued
|
Noncurrent
|
|||||||||||||
Designated as Hedges
|
Current Assets
|
Assets, Net
|
Liabilities
|
Liabilities
|
||||||||||||
Foreign
exchange forward contracts
|
$ | 598 | $ | 5 | $ | 1,010 | $ | 16 | ||||||||
Commodity
contracts
|
293 | - | - | - | ||||||||||||
Interest
rate swaps
|
- | - | 6,130 | 2,775 | ||||||||||||
Cross
currency basis swaps
|
- | - | 52,411 | 124,210 | ||||||||||||
Total
|
$ | 891 | $ | 5 | $ | 59,551 | $ | 127,001 | ||||||||
Not
Designated as Hedges
|
||||||||||||||||
Foreign
exchange forward contracts
|
$ | 556 | $ | - | $ | 409 | $ | - | ||||||||
Interest
rate swaps
|
- | - | - | 882 | ||||||||||||
Total
|
$ | 556 | $ | - | $ | 409 | $ | 882 |
Derivatives in Cash Flow Hedging
|
Effective Portion
|
||||||||
Gain (Loss)
|
Classification
|
Reclassified from
|
|||||||
(in thousands)
|
in AOCI
|
of Gains (Losses)
|
AOCI into Income
|
||||||
Interest
rate contracts
|
$ | (636 | ) |
Interest
expense
|
$ | (1,175 | ) | ||
Foreign
exchange forward contracts
|
(597 | ) |
Cost
of products sold
|
189 | |||||
Foreign
exchange forward contracts
|
(336 | ) |
SG&A
expenses
|
312 | |||||
Commodity
contracts
|
61 |
Cost
of products sold
|
140 | ||||||
Total
|
$ | (1,508 | ) | $ | (534 | ) |
Derivatives
in Cash Flow Hedging
|
Ineffective portion
|
|||||
Classification
|
Recognized
|
|||||
(in
thousands)
|
of
Gains (Losses)
|
in
Income
|
||||
Interest
rate contracts
|
Other
expense, net
|
$ | (43 | ) | ||
Foreign
exchange forward contracts
|
Interest
expense
|
(120 | ) | |||
Foreign
exchange forward contracts
|
Interest
expense
|
7 | ||||
Commodity
contracts
|
Interest
expense
|
(5 | ) | |||
Total
|
$ | (161 | ) |
Derivatives in Cash Flow Hedging
|
Effective Portion
|
||||||||
Gain (Loss)
|
Classification
|
Reclassified from
|
|||||||
(in thousands)
|
in AOCI
|
of Gains (Losses)
|
AOCI into Income
|
||||||
Interest rate contracts
|
$ | (2,051 | ) |
Interest expense
|
$ | (2,252 | ) | ||
Foreign exchange forward contracts
|
(243 | ) |
Cost of products sold
|
(302 | ) | ||||
Foreign exchange forward contracts
|
(449 | ) |
SG&A expenses
|
240 | |||||
Commodity contracts
|
343 |
Cost of products sold
|
(190 | ) | |||||
Total
|
$ | (2,400 | ) | $ | (2,504 | ) |
Three Months Ended September 30, 2009
|
||||||
Derivatives in Cash Flow Hedging
|
Ineffective portion
|
|||||
Classification
|
Recognized
|
|||||
(in thousands)
|
of Gains (Losses)
|
in Income
|
||||
Interest rate contracts
|
Other expense, net
|
$ | (54 | ) | ||
Foreign exchange forward contracts
|
Interest expense
|
(54 | ) | |||
Foreign exchange forward contracts
|
Interest expense
|
13 | ||||
Commodity contracts
|
Interest expense
|
(9 | ) | |||
Total
|
$ | (104 | ) |
Nine Months Ended September 30, 2010
|
|||||||||
Derivatives in Cash Flow Hedging
|
Effective Portion
|
||||||||
Gain (Loss)
|
Classification
|
Reclassified from
|
|||||||
(in thousands)
|
in AOCI
|
of Gains (Losses)
|
AOCI into Income
|
||||||
Interest rate contracts
|
$ | (1,515 | ) |
Interest expense
|
$ | (4,414 | ) | ||
Foreign exchange forward contracts
|
2,306 |
Cost of products sold
|
214 | ||||||
Foreign exchange forward contracts
|
361 |
SG&A expenses
|
530 | ||||||
Commodity contracts
|
232 |
Cost of products sold
|
580 | ||||||
Total
|
$ | 1,384 | $ | (3,090 | ) |
Nine Months Ended September 30, 2010
|
||||||
Derivatives in Cash Flow Hedging
|
Ineffective portion
|
|||||
Classification
|
Recognized
|
|||||
(in thousands)
|
of Gains (Losses)
|
in Income
|
||||
Interest rate contracts
|
Other expense, net
|
$ | 149 | |||
Foreign exchange forward contracts
|
Interest expense
|
(405 | ) | |||
Foreign exchange forward contracts
|
Interest expense
|
4 | ||||
Commodity contracts
|
Interest expense
|
(11 | ) | |||
Total
|
$ | (263 | ) |
Nine Months Ended September 30, 2009
|
|||||||||
Derivatives in Cash Flow Hedging
|
Effective Portion
|
||||||||
Gain (Loss)
|
Classification
|
Reclassified from
|
|||||||
(in thousands)
|
in AOCI
|
of Gains (Losses)
|
AOCI into Income
|
||||||
Interest rate contracts
|
$ | (3,425 | ) |
Interest expense
|
$ | (5,594 | ) | ||
Foreign exchange forward contracts
|
(501 | ) |
Cost of products sold
|
1,106 | |||||
Foreign exchange forward contracts
|
431 |
SG&A expenses
|
434 | ||||||
Commodity contracts
|
1,465 |
Cost of products sold
|
(1,095 | ) | |||||
Total
|
$ | (2,030 | ) | $ | (5,149 | ) |
Nine Months Ended September 30, 2009
|
||||||
Derivatives in Cash Flow Hedging
|
Ineffective portion
|
|||||
Classification
|
Recognized
|
|||||
(in thousands)
|
of Gains (Losses)
|
in Income
|
||||
Interest rate contracts
|
Other expense, net
|
$ | (155 | ) | ||
Foreign exchange forward contracts
|
Interest expense
|
(235 | ) | |||
Foreign exchange forward contracts
|
Interest expense
|
(35 | ) | |||
Commodity contracts
|
Interest expense
|
(38 | ) | |||
Total
|
$ | (463 | ) |
Three Months Ended September 30, 2010
|
|||||||||
Derivatives in Net Investment Hedging
|
Gain (Loss)
|
||||||||
Gain (Loss)
|
Classification
|
Recognized
|
|||||||
(in thousands)
|
in AOCI
|
of Gains (Losses)
|
in Income
|
||||||
Cross currency interest rate swaps
|
$ | (54,204 | ) |
Interest income
|
$ | 423 | |||
Interest expense
|
(6 | ) | |||||||
Cross currency interest rate swaps
|
(48,688 | ) |
Interest expense
|
(542 | ) | ||||
Total
|
$ | (102,892 | ) | $ | (125 | ) |
Three Months Ended September 30, 2009
|
|||||||||
Derivatives in Net Investment Hedging
|
Gain (Loss)
|
||||||||
Gain (Loss)
|
Classification
|
Recognized
|
|||||||
(in thousands)
|
in AOCI
|
of Gains (Losses)
|
in Income
|
||||||
Cross currency interest rate swaps
|
$ | (25,826 | ) |
Interest income
|
$ | 190 | |||
Cross currency interest rate swaps
|
(21,525 | ) |
Interest expense
|
(896 | ) | ||||
Total
|
$ | (47,351 | ) | $ | (706 | ) |
Derivatives
in Net Investment Hedging
|
Gain
(Loss)
|
||||||||
Gain
(Loss)
|
Classification
|
Recognized
|
|||||||
(in thousands)
|
in AOCI
|
of Gains (Losses)
|
in Income
|
||||||
Cross
currency interest rate swaps
|
$ | (31,186 | ) |
Interest
income
|
$ | 643 | |||
Interest
expense
|
(85 | ) | |||||||
Cross
currency interest rate swaps
|
25,715 |
Interest
expense
|
(1,663 | ) | |||||
Total
|
$ | (5,471 | ) | $ | (1,105 | ) |
Derivatives
in Net Investment Hedging
|
Gain
(Loss)
|
||||||||
Gain
(Loss)
|
Classification
|
Recognized
|
|||||||
(in thousands)
|
in AOCI
|
of Gains (Losses)
|
in Income
|
||||||
Cross
currency interest rate swaps
|
$ | (12,911 | ) |
Interest
income
|
$ | 1,402 | |||
Cross
currency interest rate swaps
|
(25,054 | ) |
Interest
expense
|
(3,340 | ) | ||||
Total
|
$ | (37,965 | ) | $ | (1,938 | ) |
Classification
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||
(in thousands)
|
of Gains (Losses)
|
September 30, 2010
|
September 30, 2010
|
|||||||
Foreign
exchange forward contracts
|
Other
expense, net
|
$ | 12,173 | $ | 1,296 | |||||
Interest
rate contracts
|
Interest
expense
|
(41 | ) | (220 | ) | |||||
Total
|
$ | 12,132 | $ | 1,076 |
Classification
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||
(in thousands)
|
of Gains (Losses)
|
September 30, 2009
|
September 30, 2009
|
|||||||
Foreign
exchange forward contracts
|
Other
expense, net
|
$ | 2,485 | $ | (13,428 | ) | ||||
Interest
rate contracts
|
Other
expense, net
|
- | (2 | ) | ||||||
Interest
rate contracts
|
Interest
expense
|
(124 | ) | (390 | ) | |||||
Total
|
$ | 2,361 | $ | (13,820 | ) |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(in
thousands, net of tax)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Beginning
balance
|
$ | (944 | ) | $ | (6,005 | ) | $ | (4,799 | ) | $ | (7,874 | ) | ||||
Changes
in fair value of derivatives
|
(1,051 | ) | (1,506 | ) | 1,221 | (1,152 | ) | |||||||||
Reclassifications
to earnings from equity
|
233 | 1,526 | 1,816 | 3,041 | ||||||||||||
Total
activity
|
(818 | ) | 20 | 3,037 | 1,889 | |||||||||||
Ending
balance
|
$ | (1,762 | ) | $ | (5,985 | ) | $ | (1,762 | ) | $ | (5,985 | ) |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(in
thousands, net of tax)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Beginning
balance
|
$ | (33,636 | ) | $ | 93,272 | $ | 111,115 | $ | 77,585 | |||||||
Foreign
currency translation adjustment
|
171,847 | 74,264 | (29,999 | ) | 78,776 | |||||||||||
Changes
in fair value of:
|
||||||||||||||||
Foreign
currency debt
|
(8,978 | ) | (7,673 | ) | (11,700 | ) | (2,260 | ) | ||||||||
Derivative
hedge instruments
|
(63,176 | ) | (29,073 | ) | (3,359 | ) | (23,311 | ) | ||||||||
Total
activity
|
99,693 | 37,518 | (45,058 | ) | 53,205 | |||||||||||
Ending
balance
|
$ | 66,057 | $ | 130,790 | $ | 66,057 | $ | 130,790 |
September 30, 2010
|
||||||||||||||||
(in
thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Assets
|
||||||||||||||||
Money
market funds
|
$ | 424,445 | $ | 424,445 | $ | - | $ | - | ||||||||
Commodity
contracts
|
106 | - | 106 | - | ||||||||||||
Interest
rate swaps
|
172 | 172 | ||||||||||||||
Foreign
exchange forward contracts
|
3,210 | - | 3,210 | - | ||||||||||||
Total
assets
|
$ | 427,933 | $ | 424,445 | $ | 3,488 | $ | - | ||||||||
Liabilities
|
||||||||||||||||
Interest
rate swaps
|
$ | 6,910 | $ | - | $ | 6,910 | $ | - | ||||||||
Cross
currency basis swaps
|
164,635 | - | 164,635 | - | ||||||||||||
Foreign
exchange forward contracts
|
684 | - | 684 | - | ||||||||||||
Total
liabilities
|
$ | 172,229 | $ | - | $ | 172,229 | $ | - |
December 31, 2009
|
||||||||||||||||
(in
thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Assets
|
||||||||||||||||
Money
market funds
|
$ | 364,765 | $ | 364,765 | $ | - | $ | - | ||||||||
Commodity
contracts
|
293 | - | 293 | - | ||||||||||||
Foreign
exchange forward contracts
|
1,159 | - | 1,159 | - | ||||||||||||
Total
assets
|
$ | 366,217 | $ | 364,765 | $ | 1,452 | $ | - | ||||||||
Liabilities
|
||||||||||||||||
Interest
rate swaps
|
$ | 9,787 | $ | - | $ | 9,787 | $ | - | ||||||||
Cross
currency basis swaps
|
176,621 | - | 176,621 | - | ||||||||||||
Foreign
exchange forward contracts
|
1,435 | - | 1,435 | - | ||||||||||||
Total
liabilities
|
$ | 187,843 | $ | - | $ | 187,843 | $ | - |
Three
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
Net
sales
|
$ | 541.8 | $ | 531.2 | $ | 10.6 | 2.0 | % | ||||||||
Less:
precious metal content of sales
|
47.5 | 37.4 | 10.1 | 27.0 | % | |||||||||||
Net
sales, excluding precious metal content
|
$ | 494.3 | $ | 493.8 | $ | 0.5 | 0.1 | % |
Three
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
Gross
profit
|
$ | 272.8 | $ | 271.7 | $ | 1.1 | 0.4 | % | ||||||||
Gross
profit as a percentage of net sales, including precious metal
content
|
50.4 | % | 51.2 | % | ||||||||||||
Gross
profit as a percentage of net sales, excluding precious metal
content
|
55.2 | % | 55.0 | % |
Three
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
Selling,
general and administrative expenses (“SG&A”)
|
$ | 182.1 | $ | 177.6 | $ | 4.5 | 2.5 | % | ||||||||
Restructuring
and other costs
|
$ | 0.3 | $ | 1.2 | $ | (0.9 | ) |
NM
|
||||||||
SG&A
as a percentage of net sales, including precious metal
content
|
33.6 | % | 33.4 | % | ||||||||||||
SG&A
as a percentage of net sales, excluding precious metal
content
|
36.8 | % | 36.0 | % |
Three
Months Ended
|
||||||||||||
September
30,
|
||||||||||||
(in
millions)
|
2010
|
2009
|
Change
|
|||||||||
Net
interest expense
|
$ | 4.7 | $ | 4.6 | $ | 0.1 | ||||||
Other
expense (income), net
|
0.6 | 0.5 | 0.1 | |||||||||
Net
interest and other expense
|
$ | 5.3 | $ | 5.1 | $ | 0.2 |
Three
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions, except per share data)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
Effective
income tax rates
|
25.0 | % | 22.8 | % | ||||||||||||
Net
income attributable to DENTSPLY International
|
$ | 63.7 | $ | 67.5 | $ | (3.8 | ) | (5.6 | )% | |||||||
Earnings
per common share:
|
||||||||||||||||
Diluted
|
$ | 0.44 | $ | 0.45 |
Three
Months Ended
|
||||||||
September
30, 2010
|
||||||||
Income
|
Per
Diluted
|
|||||||
(in
thousands)
|
(Expense)
|
Common Share
|
||||||
Net
income attributable to DENTSPLY International
|
$ | 63,653 | $ | 0.44 | ||||
Restructuring
and other costs, net of tax and noncontrolling interests
|
240 | - | ||||||
Acquisition
related activities, net of tax and noncontrolling
interests
|
1,283 | 0.01 | ||||||
Income
tax related adjustments
|
(320 | ) | - | |||||
Adjusted
non-US GAAP earnings
|
$ | 64,856 | $ | 0.45 |
Three
Months Ended
|
||||||||
September
30, 2009
|
||||||||
Income
|
Per
Diluted
|
|||||||
(in
thousands)
|
(Expense)
|
Common Share
|
||||||
Net
income attributable to DENTSPLY International
|
$ | 67,483 | $ | 0.45 | ||||
Restructuring
and other costs, net of tax and noncontrolling interests
|
843 | 0.01 | ||||||
Acquisition
related activities, net of tax and noncontrolling
interests
|
131 | - | ||||||
Income
tax related adjustments
|
(2,570 | ) | (0.02 | ) | ||||
Adjusted
non-US GAAP earnings
|
$ | 65,887 | $ | 0.44 |
Three
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
U.S.,
Germany and Certain Other European Regions Consumable
Businesses
|
$ | 139.1 | $ | 143.0 | $ | (3.9 | ) | (2.7 | )% | |||||||
France,
U.K., Italy and Certain Other European Countries, CIS, Middle
East, Africa, Pacific Rim Businesses
|
$ | 106.5 | $ | 104.0 | $ | 2.5 | 2.4 | % | ||||||||
Canada/Latin
America/Endodontics/ Orthodontics
|
$ | 158.7 | $ | 149.2 | $ | 9.5 | 6.4 | % | ||||||||
Dental
Laboratory Business/ Implants/Non-Dental
|
$ | 90.7 | $ | 98.3 | $ | (7.6 | ) | (7.7 | )% |
Three
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
U.S.,
Germany and Certain Other European Regions Consumable
Businesses
|
$ | 53.2 | $ | 49.0 | $ | 4.2 | 8.6 | % | ||||||||
France,
U.K., Italy and Certain Other European Countries, CIS, Middle
East, Africa, Pacific Rim Businesses
|
$ | 3.9 | $ | 3.7 | $ | 0.2 | 5.4 | % | ||||||||
Canada/Latin
America/Endodontics/ Orthodontics
|
$ | 44.9 | $ | 39.5 | $ | 5.4 | 13.7 | % | ||||||||
Dental
Laboratory Business/ Implants/Non-Dental
|
$ | 14.7 | $ | 19.0 | $ | (4.3 | ) | (22.6 | )% |
Nine
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
Net
sales
|
$ | 1,652.8 | $ | 1,591.0 | $ | 61.8 | 3.9 | % | ||||||||
Less:
precious metal content of sales
|
142.3 | 120.0 | 22.3 | 18.6 | % | |||||||||||
Net
sales, excluding precious metal content
|
$ | 1,510.5 | $ | 1,471.0 | $ | 39.5 | 2.7 | % |
Nine
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
Gross
profit
|
$ | 842.4 | $ | 823.1 | $ | 19.3 | 2.3 | % | ||||||||
Gross
profit as a percentage of net sales, including precious metal
content
|
51.0 | % | 51.7 | % | ||||||||||||
Gross
profit as a percentage of net sales, excluding precious metal
content
|
55.8 | % | 56.0 | % |
Nine
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
Selling,
general and administrative expenses ("SG&A")
|
$ | 552.5 | $ | 539.4 | $ | 13.1 | 2.4 | % | ||||||||
Restructuring
and other costs, net
|
$ | 5.3 | $ | 5.9 | $ | (0.6 | ) | (10.2 | )% | |||||||
SG&A
as a percentage of net sales, including precious metal content
|
33.4 | % | 33.9 | % | ||||||||||||
SG&A
as a percentage of net sales, excluding precious metal content
|
36.6 | % | 36.7 | % |
Nine
Months Ended
|
||||||||||||
September
30,
|
||||||||||||
(in
millions)
|
2010
|
2009
|
Change
|
|||||||||
Net
interest expense
|
$ | 15.5 | $ | 12.6 | $ | 2.9 | ||||||
Other
expense, net
|
2.3 | 1.3 | 1.0 | |||||||||
Net
interest and other expense
|
$ | 17.8 | $ | 13.9 | $ | 3.9 |
Nine
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions, except per share data)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
Effective
income tax rates
|
25.3 | % | 24.8 | % | ||||||||||||
Net
income attributable to DENTSPLY International
|
$ | 197.9 | $ | 199.4 | $ | (1.5 | ) | (0.8 | )% | |||||||
Earnings
per common share:
|
||||||||||||||||
Diluted
|
$ | 1.35 | $ | 1.33 |
Nine
Months Ended
|
||||||||
September
30, 2010
|
||||||||
Income
|
Per
Diluted
|
|||||||
(in
thousands)
|
(Expense)
|
Common Share
|
||||||
Net
income attributable to DENTSPLY International
|
$ | 197,881 | $ | 1.35 | ||||
Restructuring
and other costs, net of tax and noncontrolling interests
|
3,250 | 0.02 | ||||||
Acquisition
related activities, net of tax and noncontrolling
interests
|
1,670 | 0.01 | ||||||
Credit
risk adjustment to outstanding derivatives, net of tax
|
732 | 0.01 | ||||||
Income
tax related adjustments
|
670 | - | ||||||
Adjusted
non-US GAAP earnings
|
$ | 204,203 | $ | 1.39 |
Nine
Months Ended
|
||||||||
September
30, 2009
|
||||||||
Income
|
Per
Diluted
|
|||||||
(in
thousands)
|
(Expense)
|
Common Share
|
||||||
Net
income attributable to DENTSPLY International
|
$ | 199,424 | $ | 1.33 | ||||
Restructuring
and other costs, net of tax and noncontrolling interests
|
4,024 | 0.03 | ||||||
Acquisition
related activities, net of tax and noncontrolling
interests
|
1,770 | 0.01 | ||||||
Income
tax related adjustments
|
(2,076 | ) | (0.01 | ) | ||||
Rounding
|
- | (0.01 | ) | |||||
Adjusted
non-US GAAP earnings
|
$ | 203,142 | $ | 1.35 |
Nine
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
U.S.,
Germany, and Certain Other European Regions Consumable
Businesses
|
$ | 411.4 | $ | 407.5 | $ | 3.9 | 1.0 | % | ||||||||
France,
U.K., Italy and Certain Other European Countries, CIS, Middle
East, Africa, Pacific Rim Businesses
|
$ | 320.6 | $ | 311.1 | $ | 9.5 | 3.1 | % | ||||||||
Canada/Latin
America/Endodontics/ Orthodontics
|
$ | 484.7 | $ | 449.8 | $ | 34.9 | 7.8 | % | ||||||||
Dental
Laboratory Business/ Implants/Non-Dental
|
$ | 296.3 | $ | 304.8 | $ | (8.5 | ) | (2.8 | )% |
Nine
Months Ended
|
||||||||||||||||
September
30,
|
||||||||||||||||
(in
millions)
|
2010
|
2009
|
$ Change
|
% Change
|
||||||||||||
U.S.,
Germany, and Certain Other European Regions Consumable
Businesses
|
$ | 147.7 | $ | 125.8 | $ | 21.9 | 17.4 | % | ||||||||
France,
U.K., Italy and Certain Other European Countries, CIS, Middle
East, Africa, Pacific Rim Businesses
|
$ | 9.3 | $ | 11.3 | $ | (2.0 | ) | (17.7 | )% | |||||||
Canada/Latin
America/Endodontics/ Orthodontics
|
$ | 142.1 | $ | 135.1 | $ | 7.0 | 5.2 | % | ||||||||
Dental
Laboratory Business/ Implants/Non-Dental
|
$ | 59.6 | $ | 65.2 | $ | (5.6 | ) | (8.6 | )% |
Number
of
|
||||||||||||||||
Shares
that
|
||||||||||||||||
May
be Purchased
|
||||||||||||||||
Total
Number
|
Average
Price
|
Total
Cost
|
Under
the Share
|
|||||||||||||
of
Shares
|
Paid
Per
|
of
Shares
|
Repurchase
|
|||||||||||||
Period
|
Purchased
|
Share
|
Purchased
|
Program
|
||||||||||||
July
1-31, 2010
|
288.0 | $ | 29.36 | $ | 8,455.5 | 2,049.1 | ||||||||||
August
1-31, 2010
|
798.4 | 29.37 | 23,450.3 | 1,284.1 | ||||||||||||
September
1-30, 2010
|
- | - | - | 1,299.4 | ||||||||||||
1,086.4 | $ | 29.37 | $ | 31,905.8 |
Exhibit Number
|
Description
|
|
30
|
Section
302 Certification Statements.
|
|
32
|
Section
906 Certification Statement.
|
|
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/
|
Bret W. Wise
|
October 28, 2010
|
||
Bret
W. Wise
|
Date
|
|||
Chairman
of the Board and
|
||||
Chief
Executive Officer
|
||||
/s/
|
William R. Jellison
|
October 28, 2010
|
||
William
R. Jellison
|
Date
|
|||
Senior
Vice President and
|
||||
Chief
Financial Officer
|