Delaware
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39-1434669
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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221 West Philadelphia Street, York, PA
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17405-2558
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $.01 per share
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The NASDAQ Stock Market LLC
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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DENTSPLY International Inc.
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Table of Contents
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PART I
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Page
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Item 1
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Business
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Item 1A
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Risk Factors
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Item 1B
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Unresolved Staff Comments
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Item 2
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Properties
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Item 3
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Legal Proceedings
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Executive Officers of the Registrant
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Item 4
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Not Applicable
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PART II
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Item 5
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Market for Registrant’s Common Equity, Related Stockholder
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Matters and Issuer Purchases of Equity Securities
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Item 6
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Selected Financial Data
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Item 7
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Management’s Discussion and Analysis of Financial Condition and
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Results of Operations
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Item 7A
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Quantitative and Qualitative Disclosures About Market Risk
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Item 8
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Financial Statements and Supplementary Data
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Item 9
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Changes In and Disagreements With Accountants on Accounting
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and Financial Disclosure
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Item 9A
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Controls and Procedures
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Item 9B
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Other Information
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PART III
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Item 10
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Directors, Executive Officers and Corporate Governance
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Item 11
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Executive Compensation
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Item 12
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Security Ownership of Certain Beneficial Owners and Management
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and Related Stock Matters
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Item 13
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Certain Relationships and Related Transactions and Director
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Independence
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Item 14
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Principal Accountant Fees and Services
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PART IV
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Item 15
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Exhibits and Financial Statement Schedule
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•
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Increasing worldwide population.
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•
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Aging mix of population in developed countries - The U.S., European, Japanese and other regions have aging population with significant needs for dental care and healthcare, the elderly in these regions are well positioned to pay for the required procedures since they control sizable amounts of discretionary income.
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•
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Natural teeth are being retained longer - Individuals with natural teeth are much more likely to visit a dentist in a given year than those without any natural teeth remaining.
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•
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The changing dental practice in North America and Western Europe - Dentistry in North America and Western Europe has been transformed from a profession primarily dealing with pain, infections and tooth decay to one with increased emphasis on preventive care and cosmetic dentistry.
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•
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The demands for patient comfort and ease of product use and handling.
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•
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Per capita and discretionary incomes are increasing in emerging markets - As personal incomes continue to rise in the emerging nations of the Pacific Rim, CIS and Latin America, obtaining healthcare, including dental services, is a growing priority. Many surveys indicate the middle class population will expand significantly within these emerging markets.
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•
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The Company’s business is less susceptible than many other industries to general downturns in the economies in which it operates. Many of the products the Company offers relate to dental procedures and health conditions that are considered necessary by patients regardless of the economic environment. Dental specialty products and products that support discretionary dental procedures are the most susceptible to changes in economic conditions.
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•
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The timing of new product introductions by DENTSPLY and its competitors;
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•
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Timing of industry tradeshows;
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•
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Changes in customer inventory levels;
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•
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Developments in government reimbursement policies;
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•
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Changes in customer preferences and product mix;
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•
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The Company’s ability to supply products to meet customer demand;
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•
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Fluctuations in manufacturing costs;
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•
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Changes in income tax laws and incentives which could create adverse tax consequences;
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•
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Fluctuations in currency exchange rates; and
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•
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General economic conditions, as well as those specific to the healthcare and related industries.
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•
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Economic and political instability;
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•
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Import or export licensing requirements;
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•
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Additional compliance-related risks;
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•
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Trade restrictions;
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•
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Product registration requirements;
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•
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Longer payment cycles;
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•
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Changes in regulatory requirements and tariffs;
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•
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Fluctuations in currency exchange rates;
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•
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Potentially adverse tax consequences; and
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•
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Potentially weak protection of intellectual property rights.
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•
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making it more difficult for the Company to satisfy its obligations with respect to its indebtedness;
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•
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requiring DENTSPLY to dedicate significant cash flow from operations to the payment of principal and interest on its indebtedness, which would reduce the funds the Company has available for other purposes, including working capital, capital expenditures and acquisitions; and
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•
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reducing DENTSPLY’s flexibility in planning for or reacting to changes in its business and market conditions.
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Location
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Function
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Leased
or Owned
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United States:
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Milford, Delaware (1)
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Manufacture of dental consumable products
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Owned
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Sarasota, Florida (2)
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Manufacture of orthodontic accessory products
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Owned
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Des Plaines, Illinois (1)
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Manufacture and assembly of dental handpieces
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Leased
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Elgin, Illinois (1)
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Manufacture of dental x-ray film holders, film
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Owned/Leased
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mounts and accessories
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Waltham, Massachusetts (4)
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Manufacture and distribution of dental implant products
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Leased
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Islandia, New York (2)
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Manufacture and distribution of orthodontic
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Leased
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products and materials
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Maumee, Ohio (1)
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Manufacture and distribution of investment casting products
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Owned
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Lancaster, Pennsylvania (1)
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Distribution of dental products
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Leased
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York, Pennsylvania (1)
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Manufacture and distribution of artificial teeth
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Owned
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and other dental laboratory products
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York, Pennsylvania (1)
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Manufacture of small dental equipment, bone grafting
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Owned
|
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products, and preventive dental products
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Johnson City, Tennessee (4)
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Manufacture and distribution of endodontic
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Leased
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instruments and materials
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Foreign:
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Hasselt, Belgium (4)
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Manufacture and distribution of dental products
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Owned
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Leuven, Belgium (4)
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Manufacture and distribution of 3D digital implantology
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Leased
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Catanduva, Brazil (4)
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Manufacture and distribution of dental anesthetic products
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Owned
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Petropolis, Brazil (4)
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Manufacture and distribution of artificial teeth,
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Owned
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dental consumable products and endodontic material
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Shanghai, China (1)
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Manufacture and distribution of dental laboratory products
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Leased
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Tianjin, China (4)
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Manufacture and distribution of dental products
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Leased
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Ivry Sur-Seine, France (3)
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Manufacture and distribution of investment casting products
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Leased
|
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Bohmte, Germany (1)
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Manufacture and distribution of dental laboratory products
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Owned
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Hanau, Germany (1)
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Manufacture and distribution of precious metal dental
|
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Owned
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alloys, dental ceramics and dental implant products
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Konstanz, Germany (1)
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Manufacture and distribution of dental consumable products
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Owned
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Mannheim, Germany (4)
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Manufacture and distribution of dental implant products
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Owned/Leased
|
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Munich, Germany (4)
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Manufacture and distribution of endodontic
|
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Owned
|
(1)
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These properties are included in the Dental Consumables and Laboratory segment.
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(2)
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These properties are included in the Orthodontics/Canada/Mexico/Japan segment.
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(3)
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These properties are included in the Select Distribution segment.
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(4)
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These properties are included in the Implants/Endodontics/Healthcare/Pacific Rim segment.
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(5)
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This property is a distribution warehouse not managed by named segments.
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Name
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Age
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Position
|
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Bret W. Wise
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53
|
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Chairman of the Board and Chief Executive Officer
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Christopher T. Clark
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52
|
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President and Chief Financial Officer
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James G. Mosch
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56
|
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Executive Vice President and Chief Operating Officer
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Robert J. Size
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55
|
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Senior Vice President
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Albert J. Sterkenburg
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50
|
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Senior Vice President
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Deborah M. Rasin
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47
|
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Vice President, Secretary and General Counsel
|
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Market Range of Common Stock
|
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Period-end
Closing
Price
|
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Cash
Dividend
Declared
|
||||||||||
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High
|
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Low
|
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||||||||||
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||||||||
2013
|
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||||||||
First Quarter
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$
|
43.63
|
|
|
$
|
39.36
|
|
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$
|
42.44
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|
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$
|
0.0625
|
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Second Quarter
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44.21
|
|
|
39.90
|
|
|
40.96
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|
|
0.0625
|
|
||||
Third Quarter
|
45.37
|
|
|
40.81
|
|
|
43.41
|
|
|
0.0625
|
|
||||
Fourth Quarter
|
50.99
|
|
|
42.99
|
|
|
48.48
|
|
|
0.0625
|
|
||||
|
|
|
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|
||||||||
2012
|
|
|
|
|
|
|
|
|
|
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|
||||
First Quarter
|
$
|
40.32
|
|
|
$
|
34.77
|
|
|
$
|
40.13
|
|
|
$
|
0.055
|
|
Second Quarter
|
41.38
|
|
|
35.88
|
|
|
37.81
|
|
|
0.055
|
|
||||
Third Quarter
|
39.27
|
|
|
35.04
|
|
|
38.14
|
|
|
0.055
|
|
||||
Fourth Quarter
|
40.82
|
|
|
35.83
|
|
|
39.61
|
|
|
0.055
|
|
(in thousands, except per share amounts)
|
|
|
|
|
|
Number of
Shares that
May Yet be
Purchased
Under the Share
Repurchase
Program
|
||||||||
Period
|
|
Total Number
of Shares
Purchased
|
|
Average Price
Paid Per
Share
|
|
Total Cost
of Shares
Purchased
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||
October 1-31, 2013
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
13,962.8
|
|
November 1-30, 2013
|
|
220,400
|
|
|
47.55
|
|
|
10,479.5
|
|
|
13,908.8
|
|
||
December 1-31, 2013
|
|
737,573
|
|
|
47.68
|
|
|
35,163.9
|
|
|
13,465.9
|
|
||
|
|
957,973
|
|
|
$
|
47.65
|
|
|
$
|
45,643.4
|
|
|
|
|
(in thousands, except share price)
|
|
|
|
|
|
||
Plan Category
|
Securities to Be Issued Upon Exercise of Outstanding Options
|
|
Weighted Average Exercise Price per Share
|
|
Securities Available for Future Issuance
|
||
|
|
|
|
|
|
||
Equity compensation plans approved by security holders
|
9,425,749
|
|
$
|
35.50
|
|
|
9,441,618
|
Total
|
9,425,749
|
|
$
|
35.50
|
|
|
9,441,618
|
|
12/08
|
|
12/09
|
|
12/10
|
|
12/11
|
|
12/12
|
|
12/13
|
||||||
DENTSPLY International Inc.
|
100.00
|
|
|
125.35
|
|
|
122.53
|
|
|
126.22
|
|
|
143.70
|
|
|
176.89
|
|
NASDAQ Composite
|
100.00
|
|
|
144.88
|
|
|
170.58
|
|
|
171.30
|
|
|
199.99
|
|
|
283.39
|
|
S&P 500
|
100.00
|
|
|
126.46
|
|
|
145.51
|
|
|
148.59
|
|
|
172.37
|
|
|
228.19
|
|
S&P Health Care
|
100.00
|
|
|
119.70
|
|
|
123.17
|
|
|
138.85
|
|
|
163.69
|
|
|
231.55
|
|
|
Year ended December 31,
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011 (a)
|
|
2010
|
|
2009
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
2,950,770
|
|
|
$
|
2,928,429
|
|
|
$
|
2,537,718
|
|
|
$
|
2,221,014
|
|
|
$
|
2,159,378
|
|
Net sales, excluding precious metal content
|
2,771,728
|
|
|
2,714,698
|
|
|
2,332,589
|
|
|
2,031,757
|
|
|
1,990,666
|
|
|||||
Gross profit
|
1,577,412
|
|
|
1,556,387
|
|
|
1,273,440
|
|
|
1,130,158
|
|
|
1,106,363
|
|
|||||
Restructuring and other costs
|
13,356
|
|
|
25,717
|
|
|
35,865
|
|
|
10,984
|
|
|
6,890
|
|
|||||
Operating income
|
419,166
|
|
|
381,939
|
|
|
300,728
|
|
|
380,273
|
|
|
381,243
|
|
|||||
Income before income taxes
|
369,335
|
|
|
330,679
|
|
|
256,111
|
|
|
357,656
|
|
|
363,356
|
|
|||||
Net income
|
318,161
|
|
|
318,489
|
|
|
247,446
|
|
|
267,335
|
|
|
274,412
|
|
|||||
Net income attributable to DENTSPLY International
|
$
|
313,192
|
|
|
$
|
314,213
|
|
|
$
|
244,520
|
|
|
$
|
265,708
|
|
|
$
|
274,258
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
$
|
2.20
|
|
|
$
|
2.22
|
|
|
$
|
1.73
|
|
|
$
|
1.85
|
|
|
$
|
1.85
|
|
Diluted
|
$
|
2.16
|
|
|
$
|
2.18
|
|
|
$
|
1.70
|
|
|
$
|
1.82
|
|
|
$
|
1.83
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends declared per common share
|
$
|
0.250
|
|
|
$
|
0.220
|
|
|
$
|
0.205
|
|
|
$
|
0.200
|
|
|
$
|
0.200
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
142,663
|
|
|
141,850
|
|
|
141,386
|
|
|
143,980
|
|
|
148,319
|
|
|||||
Diluted
|
144,965
|
|
|
143,945
|
|
|
143,553
|
|
|
145,985
|
|
|
150,102
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
74,954
|
|
|
$
|
80,132
|
|
|
$
|
77,128
|
|
|
$
|
540,038
|
|
|
$
|
450,348
|
|
Property, plant and equipment, net
|
637,172
|
|
|
614,705
|
|
|
591,445
|
|
|
423,105
|
|
|
439,619
|
|
|||||
Goodwill and other intangibles, net
|
3,076,919
|
|
|
3,041,595
|
|
|
2,981,163
|
|
|
1,381,798
|
|
|
1,401,682
|
|
|||||
Total assets
|
5,078,047
|
|
|
4,972,297
|
|
|
4,755,398
|
|
|
3,257,951
|
|
|
3,087,932
|
|
|||||
Total debt, current and long-term portions
|
1,476,040
|
|
|
1,520,998
|
|
|
1,766,711
|
|
|
611,769
|
|
|
469,325
|
|
|||||
Equity
|
2,577,974
|
|
|
2,249,443
|
|
|
1,884,151
|
|
|
1,909,912
|
|
|
1,906,958
|
|
|||||
Return on average equity
|
13.0
|
%
|
|
15.2
|
%
|
|
12.9
|
%
|
|
13.9
|
%
|
|
15.4
|
%
|
|||||
Total net debt to total capitalization (b)
|
35.2
|
%
|
|
39.0
|
%
|
|
47.3
|
%
|
|
3.6
|
%
|
|
1.0
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization
|
$
|
127,903
|
|
|
$
|
129,199
|
|
|
$
|
85,035
|
|
|
$
|
65,912
|
|
|
$
|
65,175
|
|
Cash flows from operating activities
|
417,848
|
|
|
369,685
|
|
|
393,469
|
|
|
377,461
|
|
|
362,489
|
|
|||||
Capital expenditures
|
100,345
|
|
|
92,072
|
|
|
71,186
|
|
|
44,236
|
|
|
56,481
|
|
|||||
Interest expense (income), net
|
41,502
|
|
|
48,091
|
|
|
35,577
|
|
|
20,835
|
|
|
16,864
|
|
|||||
Inventory days
|
114
|
|
|
106
|
|
|
100
|
|
|
100
|
|
|
99
|
|
|||||
Receivable days
|
56
|
|
|
53
|
|
|
54
|
|
|
54
|
|
|
55
|
|
|||||
Effective tax rate
|
14.1
|
%
|
|
2.7
|
%
|
|
4.3
|
%
|
|
25.0
|
%
|
|
24.5
|
%
|
•
|
Business - a general description of DENTSPLY’s business and how performance is measured;
|
•
|
Results of Operations - an analysis of the Company’s consolidated results of operations for the three years presented in the consolidated financial statements;
|
•
|
Critical Accounting Estimates - a discussion of accounting policies that require critical judgments and estimates; and
|
•
|
Liquidity and Capital Resources - an analysis of cash flows; debt and other obligations; and aggregate contractual obligations.
|
•
|
For the year ended December 31, 2013, sales grew by 0.8% on a reported basis and grew 2.1%, excluding precious metal content. The sales growth excluding precious metal content was driven by internal growth of 1.9%, with acquisitions and currency translation each adding 0.1%. This internal sales growth was comprised of increases of 3.8% in the United States, 0.2% in Europe and 2.7% in the rest of world regions.
|
•
|
During 2013 the Company completed the integration of its regional sales and marketing organizations of the combined DENTSPLY Implants organization. Integration efforts during the year and continuing into 2014 are now primarily focused on efficiency improvements, including in-sourcing of certain products previously produced by outside parties.
|
•
|
Operating margins on a reported basis for the year ended December 31, 2013 increased 120 basis points to 14.2% from 13.0% in fiscal 2012. On an adjusted basis (a non-US GAAP measure), excluding precious metals and certain other items, operating margin improved by 10 basis points to 17.6% from 17.5%.
|
•
|
Operating cash flow for the year ended December 31, 2013 was $418 million, an all time record for the Company and a 13% increase versus $370 million in fiscal year 2012.
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
(in millions)
|
2013
|
|
2012
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Net sales
|
$
|
2,950.8
|
|
|
$
|
2,928.4
|
|
|
$
|
22.4
|
|
|
0.8
|
%
|
Less: Precious metal content of sales
|
179.1
|
|
|
213.7
|
|
|
(34.6
|
)
|
|
(16.2
|
%)
|
|||
Net sales, excluding precious metal content
|
$
|
2,771.7
|
|
|
$
|
2,714.7
|
|
|
$
|
57.0
|
|
|
2.1
|
%
|
|
Year Ended December 31, 2013
|
||||||||||
|
United
States
|
|
Europe
|
|
All Other
Regions
|
|
Worldwide
|
||||
|
|
|
|
|
|
|
|
||||
Internal sales growth
|
3.8
|
%
|
|
0.2
|
%
|
|
2.7
|
%
|
|
1.9
|
%
|
Net acquisition sales growth
|
—
|
%
|
|
0.2
|
%
|
|
(0.1
|
%)
|
|
0.1
|
%
|
Constant currency sales growth
|
3.8
|
%
|
|
0.4
|
%
|
|
2.6
|
%
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
(in millions)
|
2013
|
|
2012
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Gross profit
|
$
|
1,577.4
|
|
|
$
|
1,556.4
|
|
|
$
|
21.0
|
|
|
1.3
|
%
|
Gross profit as a percentage of net sales, including precious metal content
|
53.5
|
%
|
|
53.1
|
%
|
|
|
|
|
|
|
|||
Gross profit as a percentage of net sales, excluding precious metal content
|
56.9
|
%
|
|
57.3
|
%
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
(in millions)
|
2013
|
|
2012
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
SG&A expenses
|
$
|
1,144.9
|
|
|
$
|
1,148.7
|
|
|
$
|
(3.8
|
)
|
|
(0.3
|
%)
|
SG&A expenses as a percentage of net sales, including precious metal content
|
38.8
|
%
|
|
39.2
|
%
|
|
|
|
|
|
|
|||
SG&A expenses as a percentage of net sales, excluding precious metal content
|
41.3
|
%
|
|
42.3
|
%
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
(in millions)
|
2013
|
|
2012
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Restructuring and other costs
|
$
|
13.4
|
|
|
$
|
25.7
|
|
|
$
|
(12.3
|
)
|
|
(47.9
|
%)
|
|
Year Ended December 31,
|
|
|
||||||||
(in millions)
|
2013
|
|
2012
|
|
$ Change
|
||||||
|
|
|
|
|
|
||||||
Net interest expense
|
$
|
41.5
|
|
|
$
|
48.1
|
|
|
$
|
(6.6
|
)
|
Other expense (income), net
|
8.3
|
|
|
3.2
|
|
|
5.1
|
|
|||
Net interest and other expense
|
$
|
49.8
|
|
|
$
|
51.3
|
|
|
$
|
(1.5
|
)
|
|
Year Ended December 31,
|
|
|
||||||||
(in millions, except per share amounts)
|
2013
|
|
2012
|
|
$ Change
|
||||||
|
|
|
|
|
|
||||||
Effective income tax rate
|
14.1
|
%
|
|
2.7
|
%
|
|
|
||||
|
|
|
|
|
|
||||||
Equity in net income (loss) of unconsolidated affiliated company
|
$
|
1.0
|
|
|
$
|
(3.3
|
)
|
|
$
|
4.3
|
|
|
|
|
|
|
|
||||||
Net income attributable to noncontrolling interests
|
$
|
5.0
|
|
|
$
|
4.3
|
|
|
$
|
0.7
|
|
|
|
|
|
|
|
||||||
Net income attributable to DENTSPLY International
|
$
|
313.2
|
|
|
$
|
314.2
|
|
|
$
|
(1.0
|
)
|
|
|
|
|
|
|
||||||
Diluted earnings per common share
|
$
|
2.16
|
|
|
$
|
2.18
|
|
|
|
|
|
Year Ended December 31, 2013
|
||||||
(in thousands, except per share amounts)
|
Net Income
|
|
Per Diluted
Common Share
|
||||
|
|
|
|
||||
Net income attributable to DENTSPLY International
|
$
|
313,192
|
|
|
$
|
2.16
|
|
Amortization of purchased intangible assets, net of tax
|
32,309
|
|
|
0.22
|
|
||
Restructuring and other costs, net of tax
|
9,721
|
|
|
0.07
|
|
||
Acquisition related activities, net of tax
|
5,890
|
|
|
0.04
|
|
||
Credit risk and fair value adjustments to outstanding derivatives, net of tax
|
2,339
|
|
|
0.02
|
|
||
Gain on fair value adjustment related to an unconsolidated affiliated company, net of tax
|
(1,200
|
)
|
|
(0.01
|
)
|
||
Income tax related adjustments
|
(21,054
|
)
|
|
(0.15
|
)
|
||
Adjusted non-US GAAP earnings
|
$
|
341,197
|
|
|
$
|
2.35
|
|
|
Year Ended December 31, 2012
|
||||||
(in thousands, except per share amounts)
|
Net Income
|
|
Per Diluted
Common Share
|
||||
|
|
|
|
||||
Net income attributable to DENTSPLY International
|
$
|
314,213
|
|
|
$
|
2.18
|
|
Amortization of purchased intangible assets, net of tax
|
33,612
|
|
|
0.23
|
|
||
Restructuring and other costs, net of tax
|
18,549
|
|
|
0.13
|
|
||
Acquisition related activities, net of tax
|
9,299
|
|
|
0.07
|
|
||
Loss on fair value adjustment related to an unconsolidated affiliated company, net of tax
|
2,927
|
|
|
0.02
|
|
||
Orthodontic business continuity costs, net of tax
|
600
|
|
|
—
|
|
||
Income tax related adjustments
|
(59,992
|
)
|
|
(0.41
|
)
|
||
Adjusted non-US GAAP earnings
|
$
|
319,208
|
|
|
$
|
2.22
|
|
Net Sales, Excluding Precious Metal Content
|
|
|
|
|
|
|
|
|||||||
(in millions)
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2013
|
|
2012
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Dental Consumable and Laboratory Businesses
|
$
|
842.7
|
|
|
$
|
816.3
|
|
|
$
|
26.4
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Orthodontics/Canada/Mexico/Japan
|
$
|
279.0
|
|
|
$
|
286.7
|
|
|
$
|
(7.7
|
)
|
|
(2.7
|
%)
|
|
|
|
|
|
|
|
|
|
||||||
Select Distribution Businesses
|
$
|
267.3
|
|
|
$
|
252.1
|
|
|
$
|
15.2
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|||||||
Implants/Endodontics/Healthcare/Pacific Rim
|
$
|
1,386.9
|
|
|
$
|
1,363.3
|
|
|
$
|
23.6
|
|
|
1.7
|
%
|
Segment Operating Income (Loss)
|
|
|
|
|
|
|
|
|||||||
(in millions)
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2013
|
|
2012
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Dental Consumable and Laboratory Businesses
|
$
|
229.6
|
|
|
$
|
223.7
|
|
|
$
|
5.9
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|||||||
Orthodontics/Canada/Mexico/Japan
|
$
|
13.9
|
|
|
$
|
14.1
|
|
|
$
|
(0.2
|
)
|
|
(1.4
|
%)
|
|
|
|
|
|
|
|
|
|||||||
Select Distribution Businesses
|
$
|
(1.0
|
)
|
|
$
|
(4.2
|
)
|
|
$
|
3.2
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|||||||
Implants/Endodontics/Healthcare/Pacific Rim
|
$
|
295.4
|
|
|
$
|
293.0
|
|
|
$
|
2.4
|
|
|
0.8
|
%
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
(in millions)
|
2012
|
|
2011
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Net sales
|
$
|
2,928.4
|
|
|
$
|
2,537.7
|
|
|
$
|
390.7
|
|
|
15.4
|
%
|
Less: Precious metal content of sales
|
213.7
|
|
|
205.1
|
|
|
8.6
|
|
|
4.2
|
%
|
|||
Net sales, excluding precious metal content
|
$
|
2,714.7
|
|
|
$
|
2,332.6
|
|
|
$
|
382.1
|
|
|
16.4
|
%
|
|
Year Ended December 31, 2012
|
||||||||||
|
United
States
|
|
Europe
|
|
All Other
Regions
|
|
Worldwide
|
||||
|
|
|
|
|
|
|
|
||||
Internal sales growth
|
3.6
|
%
|
|
2.6
|
%
|
|
7.2
|
%
|
|
4.0
|
%
|
Net acquisition sales growth
|
10.2
|
%
|
|
24.9
|
%
|
|
8.7
|
%
|
|
16.2
|
%
|
Constant currency sales growth
|
13.8
|
%
|
|
27.5
|
%
|
|
15.9
|
%
|
|
20.2
|
%
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
(in millions)
|
2012
|
|
2011
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Gross profit
|
$
|
1,556.4
|
|
|
$
|
1,273.4
|
|
|
$
|
283.0
|
|
|
22.2
|
%
|
Gross profit as a percentage of net sales, including precious metal content
|
53.1
|
%
|
|
50.2
|
%
|
|
|
|
|
|
|
|||
Gross profit as a percentage of net sales, excluding precious metal content
|
57.3
|
%
|
|
54.6
|
%
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
(in millions)
|
2012
|
|
2011
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
SG&A expenses
|
$
|
1,148.7
|
|
|
$
|
936.8
|
|
|
$
|
211.9
|
|
|
22.6
|
%
|
SG&A expenses as a percentage of net sales, including precious metal content
|
39.2
|
%
|
|
36.9
|
%
|
|
|
|
|
|
|
|||
SG&A expenses as a percentage of net sales, excluding precious metal content
|
42.3
|
%
|
|
40.2
|
%
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|||||||||
(in millions)
|
2012
|
|
2011
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Restructuring and other costs
|
$
|
25.7
|
|
|
$
|
35.9
|
|
|
$
|
(10.2
|
)
|
|
(28.4
|
%)
|
|
Year Ended December 31,
|
|
|
||||||||
(in millions)
|
2012
|
|
2011
|
|
$ Change
|
||||||
|
|
|
|
|
|
||||||
Net interest expense
|
$
|
48.1
|
|
|
$
|
35.6
|
|
|
$
|
12.5
|
|
Other expense, net
|
3.2
|
|
|
9.0
|
|
|
(5.8
|
)
|
|||
Net interest and other expense
|
$
|
51.3
|
|
|
$
|
44.6
|
|
|
$
|
6.7
|
|
|
Year Ended December 31,
|
|
|
||||||||
(in millions, except per share amounts)
|
2012
|
|
2011
|
|
$ Change
|
||||||
|
|
|
|
|
|
||||||
Effective income tax rate
|
2.7
|
%
|
|
4.3
|
%
|
|
|
||||
|
|
|
|
|
|
||||||
Equity in net income (loss) of unconsolidated affiliated company
|
$
|
(3.3
|
)
|
|
$
|
2.4
|
|
|
$
|
(5.7
|
)
|
|
|
|
|
|
|
||||||
Net income attributable to noncontrolling interests
|
$
|
4.3
|
|
|
$
|
2.9
|
|
|
$
|
1.4
|
|
|
|
|
|
|
|
||||||
Net income attributable to DENTSPLY International
|
$
|
314.2
|
|
|
$
|
244.5
|
|
|
$
|
69.7
|
|
|
|
|
|
|
|
||||||
Diluted earnings per common share
|
$
|
2.18
|
|
|
$
|
1.70
|
|
|
|
|
|
Year Ended December 31, 2012
|
||||||
(in thousands, except per share amounts)
|
Net Income
|
|
Per Diluted
Common Share
|
||||
|
|
|
|
||||
Net income attributable to DENTSPLY International
|
$
|
314,213
|
|
|
$
|
2.18
|
|
Amortization of purchased intangible assets, net of tax
|
33,612
|
|
|
0.23
|
|
||
Restructuring and other costs, net of tax
|
18,549
|
|
|
0.13
|
|
||
Acquisition related activities, net of tax
|
9,299
|
|
|
0.07
|
|
||
Loss on fair value adjustment at an unconsolidated affiliated company, net of tax
|
2,927
|
|
|
0.02
|
|
||
Orthodontic business continuity costs, net of tax
|
600
|
|
|
—
|
|
||
Income tax related adjustments
|
(59,992
|
)
|
|
(0.41
|
)
|
||
Adjusted non-US GAAP earnings
|
$
|
319,208
|
|
|
$
|
2.22
|
|
|
Year Ended December 31, 2011
|
||||||
(in thousands, except per share amounts)
|
Net Income
|
|
Per Diluted
Common Share
|
||||
|
|
|
|
||||
Net income attributable to DENTSPLY International
|
$
|
244,520
|
|
|
$
|
1.70
|
|
Acquisition related activities, net of tax
|
62,723
|
|
|
0.44
|
|
||
Amortization of purchased intangible assets, net of tax
|
14,428
|
|
|
0.10
|
|
||
Restructuring and other costs, net of tax
|
11,395
|
|
|
0.08
|
|
||
Orthodontic business continuity costs, net of tax
|
2,128
|
|
|
0.01
|
|
||
Credit risk adjustment to outstanding derivatives, net of tax
|
(783
|
)
|
|
—
|
|
||
Gain on fair value adjustment at an unconsolidated affiliated company, net of tax
|
(2,486
|
)
|
|
(0.02
|
)
|
||
Income tax related adjustments
|
(41,053
|
)
|
|
(0.28
|
)
|
||
Adjusted non-US GAAP earnings
|
$
|
290,872
|
|
|
$
|
2.03
|
|
Net Sales, Excluding Precious Metal Content
|
|
|
|
|
|
|
|
|||||||
(in millions)
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2012
|
|
2011
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Dental Consumable and Laboratory Businesses
|
$
|
816.3
|
|
|
$
|
824.3
|
|
|
$
|
(8.0
|
)
|
|
(1.0
|
%)
|
|
|
|
|
|
|
|
|
|
||||||
Orthodontics/Canada/Mexico/Japan
|
$
|
286.7
|
|
|
$
|
276.2
|
|
|
$
|
10.5
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Select Distribution Businesses
|
$
|
252.1
|
|
|
$
|
252.5
|
|
|
$
|
(0.4
|
)
|
|
(0.2
|
%)
|
|
|
|
|
|
|
|
|
|||||||
Implants/Endodontics/Healthcare/Pacific Rim
|
$
|
1,363.3
|
|
|
$
|
984.5
|
|
|
$
|
378.8
|
|
|
38.5
|
%
|
Segment Operating Income (Loss)
|
|
|
|
|
|
|
|
|||||||
(in millions)
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2012
|
|
2011
|
|
$ Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Dental Consumable and Laboratory Businesses
|
$
|
223.7
|
|
|
$
|
209.4
|
|
|
$
|
14.3
|
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|||||||
Orthodontics/Canada/Mexico/Japan
|
$
|
14.1
|
|
|
$
|
13.0
|
|
|
$
|
1.1
|
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
|||||||
Select Distribution Businesses
|
$
|
(4.2
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(2.8
|
)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|||||||
Implants/Endodontics/Healthcare/Pacific Rim
|
$
|
293.0
|
|
|
$
|
218.4
|
|
|
$
|
74.6
|
|
|
34.2
|
%
|
Contractual Obligations
|
Less Than
1 Year
|
|
1-3
Years
|
|
3-5
Years
|
|
Greater
Than
5 Years
|
|
Total
|
||||||||||
(in thousands)
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term borrowings
|
$
|
204,656
|
|
|
$
|
567,888
|
|
|
$
|
17,984
|
|
|
$
|
580,305
|
|
|
$
|
1,370,833
|
|
Operating leases
|
38,068
|
|
|
50,317
|
|
|
33,793
|
|
|
21,381
|
|
|
143,559
|
|
|||||
Interest on long-term borrowings, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
of interest rate swap agreements
|
37,877
|
|
|
58,574
|
|
|
40,298
|
|
|
51,657
|
|
|
188,406
|
|
|||||
Postemployment obligations
|
11,097
|
|
|
23,852
|
|
|
27,686
|
|
|
84,824
|
|
|
147,459
|
|
|||||
Cross currency basis swaps
|
40,756
|
|
|
9,187
|
|
|
8,655
|
|
|
—
|
|
|
58,598
|
|
|||||
Precious metal consignment agreements
|
80,766
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80,766
|
|
|||||
Other commitments
|
89,122
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,122
|
|
|||||
|
$
|
502,342
|
|
|
$
|
709,818
|
|
|
$
|
128,416
|
|
|
$
|
738,167
|
|
|
$
|
2,078,743
|
|
(a)
|
Documents filed as part of this Report
|
1.
|
Financial Statements
|
2.
|
Financial Statement Schedule
|
3.
|
Exhibits
|
Exhibit
Number
|
|
Description
|
3.1
|
|
Restated Certificate of Incorporation (Filed herewith)
|
3.2
|
|
By-Laws, as amended (Filed herewith)
|
4.1
|
(a)
|
United States Commercial Paper Issuing and paying Agency Agreement dated as of August 12, 1999 between the Company and the Chase Manhattan Bank (2)
|
|
(b)
|
United States Commercial Paper Dealer Agreement dated as of March 28, 2002 between the Company and Salomon Smith Barney Inc. (6)
|
|
(c)
|
12.5 Billion Japanese Yen Term Loan Agreement, due March 28, 2012 dated as of July 25, 2008 (9)
|
|
(d)
|
United States Commercial Paper Dealer Agreement dated as of March 28, 2002 between the Company and J.P. Morgan Chase Bank, N.A. (6)
|
4.4
|
|
$250.0 Million Private Placement Note Purchase Agreement, due February 19, 2016 dated as of October 16, 2009 (10)
|
4.5
|
|
65.0 Million Swiss Franc Term Loan Agreement, due March 1, 2012 dated as of February 24, 2010 (11)
|
4.6
|
|
$500.0 Million Credit Agreement, dated as of July 27, 2011 final maturity in July 2016, by and among the Company, the subsidiary borrowers party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A. as administrative agent, Morgan Stanley Senior Funding, Inc. as Syndication Agent, Citigroup Global Markets, Inc., Bank of Tokyo-Mitsubishi UFJ, LTD and Wells Fargo Bank, N.A. as co-documentation agents, and Morgan Stanley Senior Funding, Inc. and J.P. Morgan Securities LLC, as Joint Bookrunners and Joint Lead Arrangers. (12)
|
4.8
|
|
Second Amendment to the 65.0 Million Swiss Franc Term Loan Agreement dated August 31, 2011 due September 1, 2016, between the Company, the Lenders, and PNC Bank, National Association , as Agent (12)
|
4.9
|
|
12.5 Billion Japanese Yen Term Loan Agreement between the Company and Bank of Tokyo dated September 21, 2011 due September 28, 2014, between the Company, The Bank of Tokyo as Arranger, Development Bank of Japan, Inc. as Co-Arranger, The Bank of Tokyo-Mitsubishi UFJ, Inc, as Agent, and the Bank of Tokyo-Mitsubishi UFJ, LTD, Development Bank of Japan, Inc., The Shinkumi Federation Bank, Mitsui Sumitomo Insurance Company, Limited, and The Chiba Bank, LTD as Lenders. (12)
|
4.10
|
|
$175.0 Million Credit Agreement dated August 26, 2013 among DENTSPLY International Inc., PNC Bank, National Association as Administrative Agent and the Lenders Party thereto (Filed herewith)
|
4.11
|
|
Form of Indenture (13)
|
4.12
|
|
Supplemental Indenture, dated August 23, 2011 between DENTSPLY International Inc., as Issuer and Wells Fargo, National Association, as Trustee (14)
|
10.1
|
|
1998 Stock Option Plan (1)
|
10.2
|
|
2002 Amended and Restated Equity Incentive Plan (8)
|
10.3
|
|
Restricted Stock Unit Deferral Plan (7)
|
10.4
|
(a)
|
Trust Agreement for the Company’s Employee Stock Ownership Plan between the Company and T. Rowe Price Trust Company dated as of November 1, 2000 (3)
|
|
(b)
|
Plan Recordkeeping Agreement for the Company’s Employee Stock Ownership Plan between the Company and T. Rowe Price Trust Company dated as of November 1, 2000 (3)
|
10.5
|
|
DENTSPLY Supplemental Saving Plan Agreement dated as of December 10, 2007 (8)
|
10.6
|
|
Amended and Restated Employment Agreement entered February 19, 2008 between the Company and Bret W. Wise* (8)
|
10.7
|
|
Amended and Restated Employment Agreement entered February 19, 2008 between the Company and Christopher T. Clark* (8)
|
10.8
|
|
Amended and Restated Employment Agreement entered February 19, 2008 between the Company and William R. Jellison* (8)
|
10.10
|
|
Amended and Restated Employment Agreement entered February 19, 2008 between the Company and James G. Mosch* (8)
|
10.11
|
|
Amended and Restated Employment Agreement entered February 19, 2008 between the Company and Robert J. Size* (8)
|
10.12
|
|
Amended and Restated Employment Agreement entered January 1, 2009 between the Company’s subsidiary, DeguDent GMBH and Albert Sterkenburg* (9)
|
10.13
|
|
DENTSPLY International Inc. Directors’ Deferred Compensation Plan effective January 1, 2007, as amended* (9)
|
10.14
|
|
Board Compensation Arrangement* (15)
|
10.15
|
|
Supplemental Executive Retirement Plan effective January 1, 1999, as amended January 1, 2008* (9)
|
10.16
|
|
Incentive Compensation Plan, amended and restated* (12)
|
10.17
|
|
AZ Trade Marks License Agreement, dated January 18, 2001 between AstraZeneca AB and Maillefer Instruments Holdings, S.A. (3)
|
10.18
|
(a)
|
Precious metal inventory Purchase and Sale Agreement dated November 30, 2001, as amended October 10, 2006 between Bank of Nova Scotia and the Company (7)
|
|
(b)
|
Precious metal inventory Purchase and Sale Agreement dated December 20, 2001 between JPMorgan Chase Bank and the Company (4)
|
|
(c)
|
Precious metal inventory Purchase and Sale Agreement dated December 20, 2001 between Mitsui & Co., Precious Metals Inc. and the Company (4)
|
|
(e)
|
Precious metal inventory Purchase and Sale Agreement dated January 30, 2002 between CommerzbankAG, Frankfurt, and the Company (8)
|
|
(f)
|
Precious metal inventory Purchase and Sale Agreement dated December 6, 2010, as amended February 8, 2013 between HSBC Bank USA, National Association and the Company (Filed herewith)
|
|
(g)
|
Precious metal inventory Purchase and Sale Agreement dated April 29, 2013 between The Toronto-Dominion Bank and the Company (Filed herewith)
|
10.19
|
|
Executive Change in Control Plan for foreign executives, as amended December 31, 2008* (10)
|
10.20
|
|
2010 Equity Incentive Plan, amended and restated (12)
|
10.21
|
|
Employment Agreement between the Company and Deborah M. Rasin* (12)
|
12.1
|
|
Computation of Ratio of Earnings to Fixed Charges (Filed herewith)
|
21.1
|
|
Subsidiaries of the Company (Filed herewith)
|
23.1
|
|
Consent of Independent Registered Public Accounting Firm - PricewaterhouseCoopers LLP
|
31.1
|
|
Section 302 Certification Statement Chief Executive Officer
|
31.2
|
|
Section 302 Certification Statements Chief Financial Officer
|
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
|
*
|
Management contract or compensatory plan.
|
(1)
|
Incorporated by reference to exhibit included in the Company’s Registration Statement on Form S-8 dated June 4, 1998 (No. 333-56093).
|
|
|
(2)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 1999, File No. 0-16211.
|
|
|
(3)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 2000, File No. 0-16211.
|
|
|
(4)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 2001, File No. 0-16211.
|
|
|
(5)
|
Incorporated by reference to exhibit included in the Company’s Registration Statement on Form S-8 dated November 27, 2002 (No. 333-101548).
|
|
|
(6)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 2002, File No. 0-16211.
|
|
|
(7)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 2006, File no. 0-16211.
|
|
|
(8)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 2007, File No. 0-16211.
|
|
|
(9)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 2008, File No. 0-16211
|
|
|
(10)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 2009, File no. 0-16211.
|
|
|
(11)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 2010, File no. 0-16211.
|
|
|
(12)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 2011, File no. 0-16211.
|
|
|
(13)
|
Incorporated by reference to exhibit included in the Company’s Registration Statement on Form S-3 dated August 15, 2011 (No. 333-176307).
|
|
|
(14)
|
Incorporated by reference to exhibit included in the Company’s Form 8-K dated August 29, 2011, File no. 0-16211.
|
|
|
(15)
|
Incorporated by reference to exhibit included in the Company’s Form 10-K for the fiscal year ended December 31, 2012, File no. 0-16211.
|
/s/
|
Bret W. Wise
|
|
/s/
|
Christopher T. Clark
|
|
Bret W. Wise
|
|
|
Christopher T. Clark
|
|
Chairman of the Board and
|
|
|
President and
|
|
Chief Executive Officer
|
|
|
Chief Financial Officer
|
|
February 20, 2014
|
|
|
February 20, 2014
|
/s/
|
PricewaterhouseCoopers LLP
|
|
PricewaterhouseCoopers LLP
|
|
Philadelphia, Pennsylvania
|
|
February 20, 2014
|
|
Year Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Net sales
|
$
|
2,950,770
|
|
|
$
|
2,928,429
|
|
|
$
|
2,537,718
|
|
Cost of products sold
|
1,373,358
|
|
|
1,372,042
|
|
|
1,264,278
|
|
|||
|
|
|
|
|
|
||||||
Gross profit
|
1,577,412
|
|
|
1,556,387
|
|
|
1,273,440
|
|
|||
Selling, general and administrative expenses
|
1,144,890
|
|
|
1,148,731
|
|
|
936,847
|
|
|||
Restructuring and other costs
|
13,356
|
|
|
25,717
|
|
|
35,865
|
|
|||
|
|
|
|
|
|
||||||
Operating income
|
419,166
|
|
|
381,939
|
|
|
300,728
|
|
|||
|
|
|
|
|
|
||||||
Other income and expenses:
|
|
|
|
|
|
|
|
|
|||
Interest expense
|
49,625
|
|
|
56,851
|
|
|
43,814
|
|
|||
Interest income
|
(8,123
|
)
|
|
(8,760
|
)
|
|
(8,237
|
)
|
|||
Other expense (income), net
|
8,329
|
|
|
3,169
|
|
|
9,040
|
|
|||
|
|
|
|
|
|
||||||
Income before income taxes
|
369,335
|
|
|
330,679
|
|
|
256,111
|
|
|||
Provision for income taxes
|
52,150
|
|
|
8,920
|
|
|
11,016
|
|
|||
Equity in net income (loss) of
unconsolidated affiliated company
|
976
|
|
|
(3,270
|
)
|
|
2,351
|
|
|||
|
|
|
|
|
|
||||||
Net income
|
318,161
|
|
|
318,489
|
|
|
247,446
|
|
|||
|
|
|
|
|
|
||||||
Less: Net income attributable to noncontrolling interests
|
4,969
|
|
|
4,276
|
|
|
2,926
|
|
|||
|
|
|
|
|
|
||||||
Net income attributable to DENTSPLY International
|
$
|
313,192
|
|
|
$
|
314,213
|
|
|
$
|
244,520
|
|
|
|
|
|
|
|
||||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
2.20
|
|
|
$
|
2.22
|
|
|
$
|
1.73
|
|
Diluted
|
$
|
2.16
|
|
|
$
|
2.18
|
|
|
$
|
1.70
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|||
Basic
|
142,663
|
|
|
141,850
|
|
|
141,386
|
|
|||
Diluted
|
144,965
|
|
|
143,945
|
|
|
143,553
|
|
|
Year Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Net Income
|
$
|
318,161
|
|
|
$
|
318,489
|
|
|
$
|
247,446
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
88,931
|
|
|
93,775
|
|
|
(208,009
|
)
|
|||
Net (loss) gain on derivative financial instruments
|
(29,725
|
)
|
|
(25,752
|
)
|
|
9,258
|
|
|||
Net unrealized holding (loss) gain on available-for-sale securities
|
(5,093
|
)
|
|
18,338
|
|
|
(11,545
|
)
|
|||
Pension liability adjustments
|
23,266
|
|
|
(39,196
|
)
|
|
(3,164
|
)
|
|||
Total other comprehensive income (loss)
|
77,379
|
|
|
47,165
|
|
|
(213,460
|
)
|
|||
|
|
|
|
|
|
||||||
Total comprehensive income
|
395,540
|
|
|
365,654
|
|
|
33,986
|
|
|||
|
|
|
|
|
|
||||||
Less: Comprehensive income attributable to noncontrolling interests
|
7,210
|
|
|
4,671
|
|
|
2,730
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive income attributable to DENTSPLY International
|
$
|
388,330
|
|
|
$
|
360,983
|
|
|
$
|
31,256
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Assets
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
74,954
|
|
|
$
|
80,132
|
|
Accounts and notes receivable-trade, net
|
472,802
|
|
|
442,412
|
|
||
Inventories, net
|
438,559
|
|
|
402,940
|
|
||
Prepaid expenses and other current assets
|
157,487
|
|
|
185,612
|
|
||
Total Current Assets
|
1,143,802
|
|
|
1,111,096
|
|
||
|
|
|
|
||||
Property, plant and equipment, net
|
637,172
|
|
|
614,705
|
|
||
Identifiable intangible assets, net
|
795,323
|
|
|
830,642
|
|
||
Goodwill, net
|
2,281,596
|
|
|
2,210,953
|
|
||
Other noncurrent assets, net
|
220,154
|
|
|
204,901
|
|
||
Total Assets
|
$
|
5,078,047
|
|
|
$
|
4,972,297
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
|
|
||
Current Liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
132,789
|
|
|
$
|
165,290
|
|
Accrued liabilities
|
339,308
|
|
|
424,336
|
|
||
Income taxes payable
|
14,446
|
|
|
39,191
|
|
||
Notes payable and current portion of long-term debt
|
309,862
|
|
|
298,963
|
|
||
Total Current Liabilities
|
796,405
|
|
|
927,780
|
|
||
|
|
|
|
||||
Long-term debt
|
1,166,178
|
|
|
1,222,035
|
|
||
Deferred income taxes
|
238,394
|
|
|
232,641
|
|
||
Other noncurrent liabilities
|
299,096
|
|
|
340,398
|
|
||
Total Liabilities
|
2,500,073
|
|
|
2,722,854
|
|
||
|
|
|
|
||||
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 December 31, 2013 and 2012
|
1,628
|
|
|
1,628
|
|
||
Capital in excess of par value
|
255,272
|
|
|
246,548
|
|
||
Retained earnings
|
3,095,721
|
|
|
2,818,461
|
|
||
Accumulated other comprehensive income (loss)
|
(69,062
|
)
|
|
(144,200
|
)
|
||
Treasury stock, at cost, 20.5 million shares at December 31, 2013 and 2012
|
(748,506
|
)
|
|
(713,739
|
)
|
||
Total DENTSPLY International Equity
|
2,535,053
|
|
|
2,208,698
|
|
||
Noncontrolling Interests
|
42,921
|
|
|
40,745
|
|
||
Total Equity
|
2,577,974
|
|
|
2,249,443
|
|
||
Total Liabilities and Equity
|
$
|
5,078,047
|
|
|
$
|
4,972,297
|
|
DENTSPLY INTERNATIONAL INC. AND SUBSIDIARIES
|
|||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|||||||||||||||||||||||||||||||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Common
Stock
|
|
Capital in
Excess of
Par Value
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Total
DENTSPLY
International
Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2010
|
$
|
1,628
|
|
|
$
|
204,902
|
|
|
$
|
2,320,350
|
|
|
$
|
24,156
|
|
|
$
|
(711,650
|
)
|
|
$
|
1,839,386
|
|
|
$
|
70,526
|
|
|
$
|
1,909,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
244,520
|
|
|
—
|
|
|
—
|
|
|
244,520
|
|
|
2,926
|
|
|
247,446
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(213,264
|
)
|
|
—
|
|
|
(213,264
|
)
|
|
(196
|
)
|
|
(213,460
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition of noncontrolling interest
|
—
|
|
|
22,782
|
|
|
—
|
|
|
(1,862
|
)
|
|
—
|
|
|
20,920
|
|
|
(37,008
|
)
|
|
(16,088
|
)
|
||||||||
Exercise of stock options
|
—
|
|
|
(14,677
|
)
|
|
—
|
|
|
—
|
|
|
56,952
|
|
|
42,275
|
|
|
—
|
|
|
42,275
|
|
||||||||
Tax benefit from stock options exercised
|
—
|
|
|
1,039
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,039
|
|
|
—
|
|
|
1,039
|
|
||||||||
Share based compensation expense
|
—
|
|
|
20,947
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,947
|
|
|
—
|
|
|
20,947
|
|
||||||||
Funding of Employee Stock Option Plan
|
—
|
|
|
379
|
|
|
—
|
|
|
—
|
|
|
2,595
|
|
|
2,974
|
|
|
—
|
|
|
2,974
|
|
||||||||
Treasury shares purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(79,500
|
)
|
|
(79,500
|
)
|
|
—
|
|
|
(79,500
|
)
|
||||||||
Dividends from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(174
|
)
|
|
(174
|
)
|
||||||||
RSU distributions
|
—
|
|
|
(5,872
|
)
|
|
—
|
|
|
—
|
|
|
3,626
|
|
|
(2,246
|
)
|
|
—
|
|
|
(2,246
|
)
|
||||||||
RSU dividends
|
—
|
|
|
187
|
|
|
(187
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Cash dividends ($0.205 per share)
|
—
|
|
|
—
|
|
|
(28,974
|
)
|
|
—
|
|
|
—
|
|
|
(28,974
|
)
|
|
—
|
|
|
(28,974
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2011
|
$
|
1,628
|
|
|
$
|
229,687
|
|
|
$
|
2,535,709
|
|
|
$
|
(190,970
|
)
|
|
$
|
(727,977
|
)
|
|
$
|
1,848,077
|
|
|
$
|
36,074
|
|
|
$
|
1,884,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
314,213
|
|
|
—
|
|
|
—
|
|
|
314,213
|
|
|
4,276
|
|
|
318,489
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
46,770
|
|
|
—
|
|
|
46,770
|
|
|
395
|
|
|
47,165
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Exercise of stock options
|
—
|
|
|
(10,482
|
)
|
|
—
|
|
|
—
|
|
|
44,665
|
|
|
34,183
|
|
|
—
|
|
|
34,183
|
|
||||||||
Tax benefit from stock options exercised
|
—
|
|
|
13,009
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,009
|
|
|
—
|
|
|
13,009
|
|
||||||||
Share based compensation expense
|
—
|
|
|
22,187
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,187
|
|
|
—
|
|
|
22,187
|
|
||||||||
Funding of Employee Stock Option Plan
|
—
|
|
|
370
|
|
|
—
|
|
|
—
|
|
|
3,271
|
|
|
3,641
|
|
|
—
|
|
|
3,641
|
|
||||||||
Treasury shares purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38,837
|
)
|
|
(38,837
|
)
|
|
—
|
|
|
(38,837
|
)
|
||||||||
RSU distributions
|
—
|
|
|
(8,453
|
)
|
|
—
|
|
|
—
|
|
|
5,139
|
|
|
(3,314
|
)
|
|
—
|
|
|
(3,314
|
)
|
||||||||
RSU dividends
|
—
|
|
|
230
|
|
|
(230
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Cash dividends ($0.220 per share)
|
—
|
|
|
—
|
|
|
(31,231
|
)
|
|
—
|
|
|
—
|
|
|
(31,231
|
)
|
|
—
|
|
|
(31,231
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2012
|
$
|
1,628
|
|
|
$
|
246,548
|
|
|
$
|
2,818,461
|
|
|
$
|
(144,200
|
)
|
|
$
|
(713,739
|
)
|
|
$
|
2,208,698
|
|
|
$
|
40,745
|
|
|
$
|
2,249,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
313,192
|
|
|
—
|
|
|
—
|
|
|
313,192
|
|
|
4,969
|
|
|
318,161
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
75,138
|
|
|
—
|
|
|
75,138
|
|
|
2,241
|
|
|
77,379
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisition of noncontrolling interest
|
—
|
|
|
(3,926
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,926
|
)
|
|
(5,034
|
)
|
|
(8,960
|
)
|
||||||||
Exercise of stock options
|
—
|
|
|
(7,317
|
)
|
|
—
|
|
|
—
|
|
|
74,230
|
|
|
66,913
|
|
|
—
|
|
|
66,913
|
|
||||||||
Tax benefit from stock options exercised
|
—
|
|
|
2,406
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,406
|
|
|
—
|
|
|
2,406
|
|
||||||||
Share based compensation expense
|
—
|
|
|
25,099
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,099
|
|
|
—
|
|
|
25,099
|
|
||||||||
Funding of Employee Stock Option Plan
|
—
|
|
|
959
|
|
|
—
|
|
|
—
|
|
|
3,698
|
|
|
4,657
|
|
|
—
|
|
|
4,657
|
|
||||||||
Treasury shares purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(118,024
|
)
|
|
(118,024
|
)
|
|
—
|
|
|
(118,024
|
)
|
||||||||
RSU distributions
|
—
|
|
|
(8,795
|
)
|
|
—
|
|
|
—
|
|
|
5,329
|
|
|
(3,466
|
)
|
|
—
|
|
|
(3,466
|
)
|
||||||||
RSU dividends
|
—
|
|
|
298
|
|
|
(298
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Cash dividends ($0.250 per share)
|
—
|
|
|
—
|
|
|
(35,634
|
)
|
|
—
|
|
|
—
|
|
|
(35,634
|
)
|
|
—
|
|
|
(35,634
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2013
|
$
|
1,628
|
|
|
$
|
255,272
|
|
|
$
|
3,095,721
|
|
|
$
|
(69,062
|
)
|
|
$
|
(748,506
|
)
|
|
$
|
2,535,053
|
|
|
$
|
42,921
|
|
|
$
|
2,577,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DENTSPLY INTERNATIONAL INC. AND SUBSIDIARIES
|
|
|
|
|
|
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
||||||
(in thousands)
|
Year Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Net income
|
$
|
318,161
|
|
|
$
|
318,489
|
|
|
$
|
247,446
|
|
|
|
|
|
|
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Depreciation
|
81,639
|
|
|
79,456
|
|
|
64,039
|
|
|||
Amortization of intangible and other assets
|
46,264
|
|
|
49,743
|
|
|
20,996
|
|
|||
Amortization of deferred financing costs
|
4,984
|
|
|
7,045
|
|
|
8,023
|
|
|||
Deferred income taxes
|
(29,156
|
)
|
|
(65,527
|
)
|
|
(88,402
|
)
|
|||
Share based compensation expense
|
25,099
|
|
|
22,187
|
|
|
20,947
|
|
|||
Restructuring and other costs - non-cash
|
14,008
|
|
|
20,229
|
|
|
2,460
|
|
|||
Stock option income tax benefit
|
(2,406
|
)
|
|
(13,009
|
)
|
|
(1,039
|
)
|
|||
Equity in earnings from unconsolidated affiliates
|
(976
|
)
|
|
3,270
|
|
|
(2,351
|
)
|
|||
Other non-cash expense (income)
|
19,760
|
|
|
(15,564
|
)
|
|
20,938
|
|
|||
Loss on disposal of property, plant and equipment
|
685
|
|
|
808
|
|
|
570
|
|
|||
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|||
Accounts and notes receivable-trade, net
|
(32,532
|
)
|
|
(12,591
|
)
|
|
1,469
|
|
|||
Inventories, net
|
(25,367
|
)
|
|
(36,792
|
)
|
|
21,503
|
|
|||
Prepaid expenses and other current assets
|
26,929
|
|
|
(15,126
|
)
|
|
(933
|
)
|
|||
Other noncurrent assets
|
(1,065
|
)
|
|
853
|
|
|
(1,560
|
)
|
|||
Accounts payable
|
(36,728
|
)
|
|
12,843
|
|
|
10,816
|
|
|||
Accrued liabilities
|
(4,187
|
)
|
|
(976
|
)
|
|
42,218
|
|
|||
Income taxes
|
(458
|
)
|
|
22,105
|
|
|
26,139
|
|
|||
Other noncurrent liabilities
|
13,192
|
|
|
(7,758
|
)
|
|
190
|
|
|||
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
417,846
|
|
|
369,685
|
|
|
393,469
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
||||||
Cash paid for acquisitions of businesses and equity investments
|
(66,247
|
)
|
|
(4,861
|
)
|
|
(1,787,516
|
)
|
|||
Capital expenditures
|
(100,345
|
)
|
|
(92,072
|
)
|
|
(71,186
|
)
|
|||
Purchase of company owned life insurance policies
|
(1,500
|
)
|
|
(1,577
|
)
|
|
—
|
|
|||
Cash received on derivative contracts
|
10,784
|
|
|
—
|
|
|
—
|
|
|||
Cash paid on derivative contracts
|
(104,880
|
)
|
|
(14,221
|
)
|
|
(25,575
|
)
|
|||
Expenditures for identifiable intangible assets
|
(1,076
|
)
|
|
(3,329
|
)
|
|
(3,068
|
)
|
|||
Liquidations of short-term investments
|
—
|
|
|
—
|
|
|
6
|
|
|||
Proceeds from sale of property, plant and equipment
|
3,033
|
|
|
1,039
|
|
|
497
|
|
|||
|
|
|
|
|
|
||||||
Net cash used in investing activities
|
(260,231
|
)
|
|
(115,021
|
)
|
|
(1,886,842
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
||||||
Proceeds from long-term borrowings, net of deferred financing costs
|
174,628
|
|
|
—
|
|
|
1,106,514
|
|
|||
Payments on long-term borrowings
|
(251,383
|
)
|
|
—
|
|
|
(251,932
|
)
|
|||
(Decrease) increase in short-term borrowings
|
57,261
|
|
|
(228,912
|
)
|
|
270,209
|
|
|||
Proceeds from exercise of stock options
|
66,913
|
|
|
34,183
|
|
|
42,275
|
|
|||
Excess tax benefits from share based compensation
|
2,406
|
|
|
13,009
|
|
|
1,039
|
|
|||
Cash paid for contingent consideration on prior acquisitions
|
—
|
|
|
(2,519
|
)
|
|
(3,023
|
)
|
|||
Cash paid for acquisition of noncontrolling interests of consolidated subsidiaries
|
(8,960
|
)
|
|
—
|
|
|
(16,088
|
)
|
|||
Cash paid for treasury stock
|
(118,024
|
)
|
|
(38,837
|
)
|
|
(79,500
|
)
|
|||
Cash dividends paid
|
(34,874
|
)
|
|
(31,425
|
)
|
|
(28,632
|
)
|
|||
Cash received on derivative contracts
|
7
|
|
|
—
|
|
|
—
|
|
|||
Cash paid on derivative contracts
|
(49,659
|
)
|
|
(1,108
|
)
|
|
(38,481
|
)
|
|||
|
|
|
|
|
|
||||||
Net cash (used in) provided by financing activities
|
(161,685
|
)
|
|
(255,609
|
)
|
|
1,002,381
|
|
|||
|
|
|
|
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
(1,108
|
)
|
|
3,949
|
|
|
28,082
|
|
|||
|
|
|
|
|
|
||||||
Net (decrease) increase in cash and cash equivalents
|
(5,178
|
)
|
|
3,004
|
|
|
(462,910
|
)
|
|||
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of period
|
80,132
|
|
|
77,128
|
|
|
540,038
|
|
|||
|
|
|
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
74,954
|
|
|
$
|
80,132
|
|
|
$
|
77,128
|
|
|
|
|
|
|
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|||
Interest paid, net of amounts capitalized
|
$
|
50,469
|
|
|
$
|
60,166
|
|
|
$
|
34,048
|
|
Income taxes paid
|
$
|
49,832
|
|
|
$
|
109,544
|
|
|
$
|
58,646
|
|
(in thousands, except for per share amounts)
|
Net income
attributable to
DENTSPLY
International
|
|
Shares
|
|
Earnings per
common share
|
|||||
|
|
|
|
|
|
|||||
Year Ended December 31, 2013
|
|
|
|
|
|
|||||
Basic
|
$
|
313,192
|
|
|
142,663
|
|
|
$
|
2.20
|
|
Incremental shares from assumed exercise of dilutive options
|
|
|
|
2,302
|
|
|
|
|
||
|
|
|
|
|
|
|||||
Diluted
|
$
|
313,192
|
|
|
144,965
|
|
|
$
|
2.16
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
|
||
Basic
|
$
|
314,213
|
|
|
141,850
|
|
|
$
|
2.22
|
|
Incremental shares from assumed exercise of dilutive options
|
|
|
|
2,095
|
|
|
|
|
||
|
|
|
|
|
|
|||||
Diluted
|
$
|
314,213
|
|
|
143,945
|
|
|
$
|
2.18
|
|
|
|
|
|
|
|
|||||
Year Ended December 31, 2011
|
|
|
|
|
|
|
|
|
||
Basic
|
$
|
244,520
|
|
|
141,386
|
|
|
$
|
1.73
|
|
Incremental shares from assumed exercise of dilutive options
|
|
|
|
2,167
|
|
|
|
|
||
|
|
|
|
|
|
|||||
Diluted
|
$
|
244,520
|
|
|
143,553
|
|
|
$
|
1.70
|
|
(in thousands)
|
Foreign Currency Translation Adjustments
|
|
Gains and (Loss) on Derivative Financial Instruments
|
|
Net Unrealized Holding Gain (Loss) on Available-for-Sale Securities
|
|
Pension Liability Adjustments
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2012
|
$
|
54,302
|
|
|
$
|
(143,142
|
)
|
|
$
|
17,822
|
|
|
$
|
(73,182
|
)
|
|
$
|
(144,200
|
)
|
Other comprehensive income (loss) before reclassifications
|
86,690
|
|
|
(31,687
|
)
|
|
(5,093
|
)
|
|
19,478
|
|
|
69,388
|
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
|
|
1,962
|
|
|
—
|
|
|
3,788
|
|
|
5,750
|
|
|||||
Net increase (decrease) in other comprehensive income
|
86,690
|
|
|
(29,725
|
)
|
|
(5,093
|
)
|
|
23,266
|
|
|
75,138
|
|
|||||
Balance at December 31, 2013
|
$
|
140,992
|
|
|
$
|
(172,867
|
)
|
|
$
|
12,729
|
|
|
$
|
(49,916
|
)
|
|
$
|
(69,062
|
)
|
(in thousands)
|
Foreign Currency Translation Adjustments
|
|
Gains and (Loss) on Derivative Financial Instruments
|
|
Net Unrealized Holding Gain (Loss) on Available-for-Sale Securities
|
|
Pension Liability Adjustments
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2011
|
$
|
(39,078
|
)
|
|
$
|
(117,390
|
)
|
|
$
|
(516
|
)
|
|
$
|
(33,986
|
)
|
|
$
|
(190,970
|
)
|
Other comprehensive income (loss) before reclassifications
|
93,380
|
|
|
(20,903
|
)
|
|
18,338
|
|
|
(40,474
|
)
|
|
50,341
|
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
|
|
(4,849
|
)
|
|
—
|
|
|
1,278
|
|
|
(3,571
|
)
|
|||||
Net increase (decrease) in other comprehensive income
|
93,380
|
|
|
(25,752
|
)
|
|
18,338
|
|
|
(39,196
|
)
|
|
46,770
|
|
|||||
Balance at December 31, 2012
|
$
|
54,302
|
|
|
$
|
(143,142
|
)
|
|
$
|
17,822
|
|
|
$
|
(73,182
|
)
|
|
$
|
(144,200
|
)
|
(in thousands, except per share data)
|
Year Ended December 31,
|
||
|
2011
|
||
|
|
||
Net Sales
|
$
|
2,918,347
|
|
Net income attributable to DENTSPLY
|
250,363
|
|
|
Diluted earnings per common share
|
$
|
1.74
|
|
Third Party Net Sales
|
|
|
|
|
|
||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Dental Consumable and Laboratory Businesses
|
$
|
991,694
|
|
|
$
|
993,624
|
|
|
$
|
992,406
|
|
Orthodontics/Canada/Mexico/Japan
|
307,160
|
|
|
320,614
|
|
|
309,143
|
|
|||
Select Distribution Businesses
|
267,949
|
|
|
252,632
|
|
|
253,421
|
|
|||
Implants/Endodontics/Healthcare/Pacific Rim
|
1,388,152
|
|
|
1,365,231
|
|
|
987,778
|
|
|||
All Other (a)
|
(4,185
|
)
|
|
(3,672
|
)
|
|
(5,030
|
)
|
|||
Total net sales
|
$
|
2,950,770
|
|
|
$
|
2,928,429
|
|
|
$
|
2,537,718
|
|
(a)
|
Includes amounts recorded at Corporate headquarters.
|
Third Party Net Sales, Excluding Precious Metal Content
|
|
|
|
|
|
||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Dental Consumable and Laboratory Businesses
|
$
|
842,736
|
|
|
$
|
816,281
|
|
|
$
|
824,341
|
|
Orthodontics/Canada/Mexico/Japan
|
278,994
|
|
|
286,680
|
|
|
276,228
|
|
|||
Select Distribution Businesses
|
267,300
|
|
|
252,064
|
|
|
252,539
|
|
|||
Implants/Endodontics/Healthcare/Pacific Rim
|
1,386,883
|
|
|
1,363,344
|
|
|
984,509
|
|
|||
All Other (b)
|
(4,185
|
)
|
|
(3,671
|
)
|
|
(5,030
|
)
|
|||
Total net sales, excluding precious metal content
|
$
|
2,771,728
|
|
|
$
|
2,714,698
|
|
|
$
|
2,332,587
|
|
Precious metal content of sales
|
179,042
|
|
|
213,731
|
|
|
205,131
|
|
|||
Total net sales, including precious metal content
|
$
|
2,950,770
|
|
|
$
|
2,928,429
|
|
|
$
|
2,537,718
|
|
(b)
|
Includes amounts recorded at Corporate headquarters.
|
Intersegment Net Sales
|
|
|
|
|
|
||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Dental Consumable and Laboratory Businesses
|
$
|
172,827
|
|
|
$
|
173,194
|
|
|
$
|
167,621
|
|
Orthodontics/Canada/Mexico/Japan
|
3,913
|
|
|
4,000
|
|
|
4,065
|
|
|||
Select Distribution Businesses
|
2,129
|
|
|
1,534
|
|
|
1,549
|
|
|||
Implants/Endodontics/Healthcare/Pacific Rim
|
143,455
|
|
|
139,460
|
|
|
158,724
|
|
|||
All Other (c)
|
243,127
|
|
|
221,867
|
|
|
211,658
|
|
|||
Eliminations
|
(565,451
|
)
|
|
(540,055
|
)
|
|
(543,617
|
)
|
|||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(c)
|
Includes amounts recorded at Corporate headquarters and one distribution warehouse not managed by named segments.
|
Depreciation and Amortization
|
|
|
|
|
|
||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Dental Consumable and Laboratory Businesses
|
$
|
31,137
|
|
|
$
|
33,855
|
|
|
$
|
34,575
|
|
Orthodontics/Canada/Mexico/Japan
|
3,716
|
|
|
4,959
|
|
|
4,432
|
|
|||
Select Distribution Businesses
|
931
|
|
|
964
|
|
|
875
|
|
|||
Implants/Endodontics/Healthcare/Pacific Rim
|
90,175
|
|
|
86,900
|
|
|
42,546
|
|
|||
All Other (d)
|
1,944
|
|
|
2,521
|
|
|
2,607
|
|
|||
Total
|
$
|
127,903
|
|
|
$
|
129,199
|
|
|
$
|
85,035
|
|
(d)
|
Includes amounts recorded at Corporate headquarters.
|
Segment Operating Income (Loss)
|
|
|
|
|
|
||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Dental Consumable and Laboratory Businesses
|
$
|
229,566
|
|
|
$
|
223,702
|
|
|
$
|
209,353
|
|
Orthodontics/Canada/Mexico/Japan
|
13,946
|
|
|
14,104
|
|
|
12,998
|
|
|||
Select Distribution Businesses
|
(1,005
|
)
|
|
(4,191
|
)
|
|
(1,358
|
)
|
|||
Implants/Endodontics/Healthcare/Pacific Rim
|
295,419
|
|
|
292,991
|
|
|
218,396
|
|
|||
All Other (e)
|
(105,404
|
)
|
|
(118,950
|
)
|
|
(102,796
|
)
|
|||
Segment Operating Income
|
$
|
432,522
|
|
|
$
|
407,656
|
|
|
$
|
336,593
|
|
|
|
|
|
|
|
||||||
Reconciling Items:
|
|
|
|
|
|
|
|
|
|||
Restructuring and other costs
|
13,356
|
|
|
25,717
|
|
|
35,865
|
|
|||
Interest expense
|
49,625
|
|
|
56,851
|
|
|
43,814
|
|
|||
Interest income
|
(8,123
|
)
|
|
(8,760
|
)
|
|
(8,237
|
)
|
|||
Other expense (income), net
|
8,329
|
|
|
3,169
|
|
|
9,040
|
|
|||
Income before income taxes
|
$
|
369,335
|
|
|
$
|
330,679
|
|
|
$
|
256,111
|
|
(e)
|
Includes results of Corporate headquarters, inter-segment eliminations and one distribution warehouse not managed by named segments. Amount recorded in 2011 includes
$31.9 million
of Astra Tech acquisition costs.
|
Capital Expenditures
|
|
|
|
|
|
||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Dental Consumable and Laboratory Businesses
|
$
|
21,122
|
|
|
$
|
18,957
|
|
|
$
|
20,693
|
|
Orthodontics/Canada/Mexico/Japan
|
14,423
|
|
|
9,071
|
|
|
7,494
|
|
|||
Select Distribution Businesses
|
1,377
|
|
|
657
|
|
|
1,123
|
|
|||
Implants/Endodontics/Healthcare/Pacific Rim
|
58,104
|
|
|
58,372
|
|
|
32,958
|
|
|||
All Other (f)
|
5,319
|
|
|
5,015
|
|
|
8,918
|
|
|||
Total
|
$
|
100,345
|
|
|
$
|
92,072
|
|
|
$
|
71,186
|
|
(f)
|
Includes capital expenditures of Corporate headquarters.
|
Assets
|
|
|
|
||||
(in thousands)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Dental Consumable and Laboratory Businesses
|
$
|
961,989
|
|
|
$
|
1,007,307
|
|
Orthodontics/Canada/Mexico/Japan
|
308,393
|
|
|
294,348
|
|
||
Select Distribution Businesses
|
166,679
|
|
|
192,684
|
|
||
Implants/Endodontics/Healthcare/Pacific Rim
|
3,450,670
|
|
|
3,195,382
|
|
||
All Other (g)
|
190,316
|
|
|
282,576
|
|
||
Total
|
$
|
5,078,047
|
|
|
$
|
4,972,297
|
|
(g)
|
Includes assets of Corporate headquarters, inter-segment eliminations and one distribution warehouse not managed by named segments.
|
(in thousands)
|
United
States
|
|
Germany
|
|
Sweden
|
|
Other
Foreign
|
|
Consolidated
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
1,011,646
|
|
|
$
|
559,109
|
|
|
$
|
57,504
|
|
|
$
|
1,322,511
|
|
|
$
|
2,950,770
|
|
Property, plant and equipment, net
|
158,673
|
|
|
129,685
|
|
|
134,083
|
|
|
214,731
|
|
|
637,172
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales
|
$
|
993,980
|
|
|
$
|
546,092
|
|
|
$
|
54,507
|
|
|
$
|
1,333,850
|
|
|
$
|
2,928,429
|
|
Property, plant and equipment, net
|
148,950
|
|
|
122,310
|
|
|
133,502
|
|
|
209,943
|
|
|
614,705
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales
|
$
|
875,471
|
|
|
$
|
515,819
|
|
|
$
|
20,383
|
|
|
$
|
1,126,045
|
|
|
$
|
2,537,718
|
|
Property, plant and equipment, net
|
137,871
|
|
|
118,229
|
|
|
150,167
|
|
|
185,178
|
|
|
591,445
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Dental consumables products
|
$
|
777,935
|
|
|
$
|
768,098
|
|
|
$
|
766,385
|
|
Dental laboratory products
|
472,080
|
|
|
511,850
|
|
|
515,491
|
|
|||
Dental specialty products
|
1,347,417
|
|
|
1,313,035
|
|
|
1,087,551
|
|
|||
Consumable medical device products
|
353,338
|
|
|
335,446
|
|
|
168,291
|
|
|||
Total net sales
|
$
|
2,950,770
|
|
|
$
|
2,928,429
|
|
|
$
|
2,537,718
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Foreign exchange transaction losses
|
$
|
8,982
|
|
|
$
|
2,679
|
|
|
$
|
1,713
|
|
Other (income) expense, net
|
(653
|
)
|
|
490
|
|
|
7,327
|
|
|||
Total other expense (income), net
|
$
|
8,329
|
|
|
$
|
3,169
|
|
|
$
|
9,040
|
|
|
December 31,
|
||||||
(in thousands)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Finished goods
|
$
|
285,271
|
|
|
$
|
248,870
|
|
Work-in-process
|
67,718
|
|
|
72,533
|
|
||
Raw materials and supplies
|
85,570
|
|
|
81,537
|
|
||
Inventories, net
|
$
|
438,559
|
|
|
$
|
402,940
|
|
|
December 31,
|
||||||
(in thousands)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Assets, at cost:
|
|
|
|
||||
Land
|
$
|
47,616
|
|
|
$
|
45,561
|
|
Buildings and improvements
|
427,826
|
|
|
409,451
|
|
||
Machinery and equipment
|
907,541
|
|
|
848,331
|
|
||
Construction in progress
|
59,583
|
|
|
50,647
|
|
||
|
1,442,566
|
|
|
1,353,990
|
|
||
Less: Accumulated depreciation
|
805,394
|
|
|
739,285
|
|
||
Property, plant and equipment, net
|
$
|
637,172
|
|
|
$
|
614,705
|
|
(in thousands)
|
Dental Consumable and Laboratory Businesses
|
|
Orthodontics/Canada/Mexico/Japan
|
|
Select Distribution Businesses
|
|
Implants/Endodontics/Healthcare/Pacific Rim
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2012
|
$
|
488,206
|
|
|
$
|
102,065
|
|
|
$
|
92,473
|
|
|
$
|
1,528,209
|
|
|
$
|
2,210,953
|
|
Acquisition activity
|
42,998
|
|
|
—
|
|
|
—
|
|
|
9,901
|
|
|
52,899
|
|
|||||
Business unit transfers
|
(111,766
|
)
|
|
(4,365
|
)
|
|
(29,510
|
)
|
|
145,641
|
|
|
—
|
|
|||||
Additional consideration for post closing adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
610
|
|
|
610
|
|
|||||
Effect of exchange rate changes
|
1,844
|
|
|
(2,531
|
)
|
|
3,571
|
|
|
14,250
|
|
|
17,134
|
|
|||||
Balance, at December 31, 2013
|
$
|
421,282
|
|
|
$
|
95,169
|
|
|
$
|
66,534
|
|
|
$
|
1,698,611
|
|
|
$
|
2,281,596
|
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(in thousands)
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Patents
|
$
|
181,847
|
|
|
$
|
(91,736
|
)
|
|
$
|
90,111
|
|
|
$
|
179,512
|
|
|
$
|
(81,390
|
)
|
|
$
|
98,122
|
|
Trademarks
|
85,922
|
|
|
(35,994
|
)
|
|
49,928
|
|
|
83,073
|
|
|
(33,129
|
)
|
|
49,944
|
|
||||||
Licensing agreements
|
31,950
|
|
|
(20,992
|
)
|
|
10,958
|
|
|
30,695
|
|
|
(18,966
|
)
|
|
11,729
|
|
||||||
Customer relationships
|
497,108
|
|
|
(82,381
|
)
|
|
414,727
|
|
|
491,859
|
|
|
(50,632
|
)
|
|
441,227
|
|
||||||
Total definite-lived
|
$
|
796,827
|
|
|
$
|
(231,103
|
)
|
|
$
|
565,724
|
|
|
$
|
785,139
|
|
|
$
|
(184,117
|
)
|
|
$
|
601,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trademarks and In-process R&D
|
$
|
229,599
|
|
|
$
|
—
|
|
|
$
|
229,599
|
|
|
$
|
229,620
|
|
|
$
|
—
|
|
|
$
|
229,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total identifiable intangible assets
|
$
|
1,026,426
|
|
|
$
|
(231,103
|
)
|
|
$
|
795,323
|
|
|
$
|
1,014,759
|
|
|
$
|
(184,117
|
)
|
|
$
|
830,642
|
|
|
December 31,
|
||||||
(in thousands)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Deferred taxes
|
$
|
86,929
|
|
|
$
|
80,903
|
|
Prepaid expenses
|
36,129
|
|
|
54,881
|
|
||
Other current assets
|
34,429
|
|
|
49,828
|
|
||
Prepaid expenses and other current assets
|
$
|
157,487
|
|
|
$
|
185,612
|
|
|
December 31,
|
||||||
(in thousands)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Payroll, commissions, bonuses, other cash compensation and employee benefits
|
$
|
101,274
|
|
|
$
|
96,206
|
|
General insurance
|
12,178
|
|
|
12,204
|
|
||
Sales and marketing programs
|
38,514
|
|
|
32,742
|
|
||
Professional and legal costs
|
14,855
|
|
|
12,202
|
|
||
Restructuring costs
|
8,608
|
|
|
14,452
|
|
||
Warranty liabilities
|
3,608
|
|
|
3,693
|
|
||
Deferred income
|
4,922
|
|
|
5,514
|
|
||
Accrued vacation and holidays
|
29,944
|
|
|
29,804
|
|
||
Third party royalties
|
11,494
|
|
|
11,288
|
|
||
Current portion of derivatives
|
54,367
|
|
|
144,195
|
|
||
Other
|
59,544
|
|
|
62,036
|
|
||
Accrued liabilities
|
$
|
339,308
|
|
|
$
|
424,336
|
|
|
|
December 31,
|
||||||||||||
|
|
2013
|
|
2012
|
||||||||||
|
|
Principal
|
|
Interest
|
|
Principal
|
|
Interest
|
||||||
(in thousands)
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Bank overdrafts
|
|
$
|
1,429
|
|
|
1.0
|
%
|
|
$
|
123
|
|
|
—
|
%
|
Corporate commercial paper facility
|
|
101,900
|
|
|
0.3
|
%
|
|
45,000
|
|
|
0.5
|
%
|
||
Brazil short-term loans
|
|
1,314
|
|
|
2.8
|
%
|
|
1,000
|
|
|
2.0
|
%
|
||
Other short-term loans
|
|
563
|
|
|
1.8
|
%
|
|
1,962
|
|
|
3.9
|
%
|
||
Add: Current portion of long-term debt
|
|
204,656
|
|
|
|
|
250,878
|
|
|
|
||||
Total short-term debt
|
|
$
|
309,862
|
|
|
|
|
$
|
298,963
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
2013
|
|
|
|
2012
|
|
|
||||||
Maximum month-end short-term debt outstanding during the year
|
|
$
|
417,065
|
|
|
|
|
$
|
399,931
|
|
|
|
||
Average amount of short-term debt outstanding during the year
|
|
$
|
318,817
|
|
|
|
|
$
|
248,318
|
|
|
|
||
Weighted-average interest rate on short-term debt at year-end
|
|
|
|
1.6
|
%
|
|
|
|
0.6
|
%
|
|
|
December 31,
|
||||||||||||
|
|
2013
|
|
2012
|
||||||||||
|
|
Principal
|
|
Interest
|
|
Principal
|
|
Interest
|
||||||
(in thousands)
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Floating rate senior notes $250 million due August 2013
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
250,000
|
|
|
1.8
|
%
|
Term loan Japanese yen denominated due September 2014
|
|
119,213
|
|
|
1.0
|
%
|
|
144,681
|
|
|
1.1
|
%
|
||
Private placement notes $250 million due February 2016
|
|
252,370
|
|
|
4.1
|
%
|
|
254,560
|
|
|
4.1
|
%
|
||
Fixed rate senior notes $300 million due August 2016
|
|
299,775
|
|
|
2.8
|
%
|
|
299,689
|
|
|
2.8
|
%
|
||
Term loan Swiss francs denominated due September 2016
|
|
72,829
|
|
|
1.1
|
%
|
|
71,027
|
|
|
1.2
|
%
|
||
Term loan $175 million due August 2020
|
|
175,000
|
|
|
1.4
|
%
|
|
—
|
|
|
—
|
%
|
||
Fixed rate senior notes $450 million due August 2021
|
|
448,809
|
|
|
4.2
|
%
|
|
448,653
|
|
|
4.2
|
%
|
||
Other borrowings, various currencies and rates
|
|
2,838
|
|
|
|
|
4,303
|
|
|
|
||||
|
|
$
|
1,370,834
|
|
|
|
|
$
|
1,472,913
|
|
|
|
||
Less: Current portion
|
|
|
|
|
|
|
|
|
||||||
(included in notes payable and current portion of long-term debt)
|
|
204,656
|
|
|
|
|
250,878
|
|
|
|
||||
Long-term portion
|
|
$
|
1,166,178
|
|
|
|
|
$
|
1,222,035
|
|
|
|
(in thousands)
|
Common
Shares
|
|
Treasury
Shares
|
|
Outstanding
Shares
|
|||
|
|
|
|
|
|
|||
Balance at December 31, 2010
|
162,776
|
|
|
(21,041
|
)
|
|
141,735
|
|
Shares issued
|
—
|
|
|
2,084
|
|
|
2,084
|
|
Repurchase of common stock at cost
|
—
|
|
|
(2,187
|
)
|
|
(2,187
|
)
|
|
|
|
|
|
|
|||
Balance at December 31, 2011
|
162,776
|
|
|
(21,144
|
)
|
|
141,632
|
|
Shares issued
|
—
|
|
|
1,688
|
|
|
1,688
|
|
Repurchase of common stock at cost
|
—
|
|
|
(998
|
)
|
|
(998
|
)
|
|
|
|
|
|
|
|||
Balance at December 31, 2012
|
162,776
|
|
|
(20,454
|
)
|
|
142,322
|
|
Shares issued
|
—
|
|
|
2,605
|
|
|
2,605
|
|
Repurchase of common stock at cost
|
—
|
|
|
(2,686
|
)
|
|
(2,686
|
)
|
|
|
|
|
|
|
|||
Balance at December 31, 2013
|
162,776
|
|
|
(20,535
|
)
|
|
142,241
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Stock option expense
|
$
|
10,554
|
|
|
$
|
11,126
|
|
|
$
|
10,369
|
|
RSU expense
|
13,059
|
|
|
9,644
|
|
|
9,243
|
|
|||
Total stock based compensation expense
|
$
|
23,613
|
|
|
$
|
20,770
|
|
|
$
|
19,612
|
|
|
|
|
|
|
|
||||||
Related deferred income tax benefit
|
$
|
6,057
|
|
|
$
|
5,775
|
|
|
$
|
5,021
|
|
|
December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Weighted average fair value per share
|
$
|
9.30
|
|
|
$
|
8.91
|
|
|
$
|
8.86
|
|
Expected dividend yield
|
0.53
|
%
|
|
0.57
|
%
|
|
0.55
|
%
|
|||
Risk-free interest rate
|
0.87
|
%
|
|
0.93
|
%
|
|
2.35
|
%
|
|||
Expected volatility
|
25
|
%
|
|
26
|
%
|
|
24
|
%
|
|||
Expected life (years)
|
4.98
|
|
|
5.10
|
|
|
5.07
|
|
|
Outstanding
|
|
Exercisable
|
||||||||||||||||||
(in thousands, except per share amounts)
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Aggregate
Intrinsic
Value
|
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Aggregate
Intrinsic
Value
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2012
|
9,906
|
|
|
$
|
33.18
|
|
|
$
|
69,079
|
|
|
7,599
|
|
|
$
|
31.79
|
|
|
$
|
64,819
|
|
Granted
|
923
|
|
|
40.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exercised
|
(2,309
|
)
|
|
28.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cancelled
|
(31
|
)
|
|
42.82
|
|
|
|
|
|
|
|
|
|
||||||||
Forfeited
|
(194
|
)
|
|
38.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
December 31, 2013
|
8,295
|
|
|
$
|
35.04
|
|
|
$
|
111,450
|
|
|
6,225
|
|
|
$
|
33.67
|
|
|
$
|
92,200
|
|
|
|
|
|
Outstanding
|
|
Exercisable
|
|||||||||||||
(in thousands, except per share amounts and life)
|
|
Number
Outstanding
at
December 31,
|
|
Weighted
Average
Remaining
Contractual
Life
(in years)
|
|
Weighted
Average
Exercise
Price
|
|
Number
Exercisable
at
December 31,
|
|
Weighted
Average
Exercise
Price
|
|||||||||
Range of
|
|
|
|
|
|
||||||||||||||
Exercise Prices
|
|
2013
|
|
|
|
2013
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
20.01
|
|
-
|
30.00
|
|
1,938
|
|
|
3.6
|
|
$
|
26.83
|
|
|
1,938
|
|
|
$
|
26.83
|
|
30.01
|
|
-
|
40.00
|
|
4,622
|
|
|
6.2
|
|
35.51
|
|
|
3,408
|
|
|
34.64
|
|
||
40.01
|
|
-
|
50.00
|
|
1,735
|
|
|
6.5
|
|
42.98
|
|
|
879
|
|
|
44.97
|
|
||
|
|
|
|
8,295
|
|
|
5.6
|
|
$
|
35.04
|
|
|
6,225
|
|
|
$
|
33.67
|
|
|
Unvested Restricted Stock Units
|
|||||
|
Shares
|
|
Weighted Average
Grant Date
Fair Value
|
|||
(in thousands, except per share amounts)
|
|
|||||
|
|
|||||
|
|
|
|
|||
Unvested at December 31, 2012
|
1,034
|
|
|
$
|
36.34
|
|
Granted
|
506
|
|
|
40.92
|
|
|
Vested
|
(248
|
)
|
|
32.80
|
|
|
Forfeited
|
(161
|
)
|
|
38.82
|
|
|
Unvested at December 31, 2013
|
1,131
|
|
|
$
|
38.81
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
United States
|
$
|
58,383
|
|
|
$
|
67,668
|
|
|
$
|
7,041
|
|
Foreign
|
310,952
|
|
|
263,011
|
|
|
249,070
|
|
|||
|
$
|
369,335
|
|
|
$
|
330,679
|
|
|
$
|
256,111
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Current:
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
10,340
|
|
|
$
|
23,412
|
|
|
$
|
34,870
|
|
U.S. state
|
4,660
|
|
|
2,788
|
|
|
5,151
|
|
|||
Foreign
|
66,306
|
|
|
69,954
|
|
|
59,397
|
|
|||
Total
|
$
|
81,306
|
|
|
$
|
96,154
|
|
|
$
|
99,418
|
|
|
|
|
|
|
|
||||||
Deferred:
|
|
|
|
|
|
|
|
|
|||
U.S. federal
|
$
|
(28,941
|
)
|
|
$
|
(128,832
|
)
|
|
$
|
(29,664
|
)
|
U.S. state
|
(1,377
|
)
|
|
11,730
|
|
|
(4,089
|
)
|
|||
Foreign
|
1,162
|
|
|
29,868
|
|
|
(54,649
|
)
|
|||
Total
|
$
|
(29,156
|
)
|
|
$
|
(87,234
|
)
|
|
$
|
(88,402
|
)
|
|
|
|
|
|
|
||||||
|
$
|
52,150
|
|
|
$
|
8,920
|
|
|
$
|
11,016
|
|
|
December 31,
|
|||||||
|
2013
|
|
2012
|
|
2011
|
|||
|
|
|
|
|
|
|||
Statutory U. S. federal income tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Effect of:
|
|
|
|
|
|
|
|
|
State income taxes, net of federal benefit
|
0.7
|
|
|
0.7
|
|
|
0.3
|
|
Federal benefit of R&D and foreign tax credits
|
(5.9
|
)
|
|
(7.2
|
)
|
|
(8.6
|
)
|
Tax effect of international operations
|
(10.2
|
)
|
|
(7.4
|
)
|
|
(7.9
|
)
|
Net effect of tax audit activity
|
1.9
|
|
|
(0.6
|
)
|
|
2.1
|
|
Tax effect of enacted statutory rate changes
|
0.1
|
|
|
(3.7
|
)
|
|
0.2
|
|
Federal tax on unremitted earnings of certain foreign subsidiaries
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Valuation allowance adjustments
|
(0.6
|
)
|
|
12.0
|
|
|
(18.1
|
)
|
Tax effect of enacted U.S. federal legislation
|
(2.6
|
)
|
|
—
|
|
|
—
|
|
Foreign outside basis differences
|
(1.5
|
)
|
|
(26.5
|
)
|
|
—
|
|
Other
|
(2.8
|
)
|
|
0.3
|
|
|
1.2
|
|
|
|
|
|
|
|
|||
Effective income tax rate on operations
|
14.1
|
%
|
|
2.7
|
%
|
|
4.3
|
%
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||
(in thousands)
|
Deferred
Tax
Asset
|
|
Deferred
Tax
Liability
|
|
Deferred
Tax
Asset
|
|
Deferred
Tax
Liability
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Commission and bonus accrual
|
$
|
5,793
|
|
|
$
|
—
|
|
|
$
|
2,529
|
|
|
$
|
—
|
|
Employee benefit accruals
|
46,740
|
|
|
—
|
|
|
44,266
|
|
|
—
|
|
||||
Foreign outside basis difference
|
—
|
|
|
—
|
|
|
189,125
|
|
|
—
|
|
||||
Inventory
|
21,941
|
|
|
—
|
|
|
21,173
|
|
|
—
|
|
||||
Identifiable intangible assets
|
—
|
|
|
374,240
|
|
|
—
|
|
|
359,303
|
|
||||
Insurance premium accruals
|
4,402
|
|
|
—
|
|
|
4,381
|
|
|
—
|
|
||||
Miscellaneous accruals
|
10,089
|
|
|
—
|
|
|
12,685
|
|
|
—
|
|
||||
Other
|
35,734
|
|
|
—
|
|
|
15,844
|
|
|
—
|
|
||||
Unrealized losses included in AOCI
|
32,908
|
|
|
—
|
|
|
39,879
|
|
|
—
|
|
||||
Property, plant and equipment
|
—
|
|
|
49,368
|
|
|
—
|
|
|
51,020
|
|
||||
Product warranty accruals
|
1,069
|
|
|
—
|
|
|
1,154
|
|
|
—
|
|
||||
Foreign tax credit carryforward
|
48,450
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Restructuring and other cost accruals
|
956
|
|
|
—
|
|
|
1,048
|
|
|
—
|
|
||||
Sales and marketing accrual
|
5,768
|
|
|
—
|
|
|
4,480
|
|
|
—
|
|
||||
Taxes on unremitted earnings of foreign subsidiaries
|
—
|
|
|
2,506
|
|
|
—
|
|
|
2,556
|
|
||||
Tax loss carryforwards and other tax attributes
|
389,614
|
|
|
—
|
|
|
187,449
|
|
|
—
|
|
||||
Valuation allowance
|
(228,846
|
)
|
|
—
|
|
|
(179,699
|
)
|
|
—
|
|
||||
|
$
|
374,618
|
|
|
$
|
426,114
|
|
|
$
|
344,314
|
|
|
$
|
412,879
|
|
|
December 31,
|
||||||
(in thousands)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Prepaid expenses and other current assets
|
$
|
86,929
|
|
|
$
|
80,903
|
|
Income taxes payable
|
4,416
|
|
|
2,856
|
|
||
Other noncurrent assets, net
|
104,385
|
|
|
86,029
|
|
||
Deferred income taxes
|
238,394
|
|
|
232,641
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
||||||
Unrecognized tax benefits at beginning of period
|
$
|
12,264
|
|
|
$
|
14,956
|
|
|
$
|
13,143
|
|
Gross change for prior period positions
|
2,471
|
|
|
(3,029
|
)
|
|
1,425
|
|
|||
Gross change for current year positions
|
4,517
|
|
|
268
|
|
|
640
|
|
|||
Decrease due to settlements and payments
|
—
|
|
|
—
|
|
|
—
|
|
|||
Decrease due to statute expirations
|
(1,381
|
)
|
|
—
|
|
|
(123
|
)
|
|||
Increase due to effect of foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|||
Decrease due to effect from foreign currency translation
|
126
|
|
|
69
|
|
|
(129
|
)
|
|||
|
|
|
|
|
|
||||||
Unrecognized tax benefits at end of period
|
$
|
17,997
|
|
|
$
|
12,264
|
|
|
$
|
14,956
|
|
|
|
|
|
|
Other Postemployment
|
||||||||||
|
Pension Benefits
|
|
Benefits
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Change in Benefit Obligation
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
$
|
355,766
|
|
|
$
|
270,607
|
|
|
$
|
14,218
|
|
|
$
|
12,217
|
|
Service cost
|
14,863
|
|
|
12,178
|
|
|
234
|
|
|
195
|
|
||||
Interest cost
|
9,901
|
|
|
10,600
|
|
|
464
|
|
|
490
|
|
||||
Participant contributions
|
3,968
|
|
|
3,638
|
|
|
515
|
|
|
535
|
|
||||
Actuarial (gains) losses
|
(20,727
|
)
|
|
59,461
|
|
|
(2,708
|
)
|
|
1,601
|
|
||||
Plan amendments
|
—
|
|
|
(93
|
)
|
|
11
|
|
|
—
|
|
||||
Acquisitions/Divestitures
|
30
|
|
|
3,745
|
|
|
—
|
|
|
—
|
|
||||
Effect of exchange rate changes
|
8,248
|
|
|
8,100
|
|
|
—
|
|
|
—
|
|
||||
Foreign plan additions
|
—
|
|
|
540
|
|
|
—
|
|
|
—
|
|
||||
Foreign plan deletions
|
(524
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Plan curtailments
|
(1,669
|
)
|
|
(310
|
)
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
(10,440
|
)
|
|
(12,700
|
)
|
|
(798
|
)
|
|
(820
|
)
|
||||
Benefit obligation at end of year
|
$
|
359,416
|
|
|
$
|
355,766
|
|
|
$
|
11,936
|
|
|
$
|
14,218
|
|
|
|
|
|
|
|
|
|
||||||||
Change in Plan Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
$
|
124,884
|
|
|
$
|
108,708
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on assets
|
9,658
|
|
|
10,732
|
|
|
—
|
|
|
—
|
|
||||
Effect of exchange rate changes
|
2,377
|
|
|
2,362
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
12,718
|
|
|
12,144
|
|
|
283
|
|
|
285
|
|
||||
Participant contributions
|
3,968
|
|
|
3,638
|
|
|
515
|
|
|
535
|
|
||||
Benefits paid
|
(10,440
|
)
|
|
(12,700
|
)
|
|
(798
|
)
|
|
(820
|
)
|
||||
Fair value of plan assets at end of year
|
$
|
143,165
|
|
|
$
|
124,884
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Funded status at end of year
|
$
|
(216,251
|
)
|
|
$
|
(230,882
|
)
|
|
$
|
(11,936
|
)
|
|
$
|
(14,218
|
)
|
|
Pension Benefits
|
|
Other Postemployment
Benefits |
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Other noncurrent assets, net
|
$
|
23
|
|
|
$
|
263
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Deferred tax asset
|
19,618
|
|
|
26,421
|
|
|
605
|
|
|
1,764
|
|
||||
Total assets
|
$
|
19,641
|
|
|
$
|
26,684
|
|
|
$
|
605
|
|
|
$
|
1,764
|
|
|
|
|
|
|
|
|
|
||||||||
Current liabilities
|
(5,097
|
)
|
|
(4,561
|
)
|
|
(491
|
)
|
|
(654
|
)
|
||||
Other noncurrent liabilities
|
(211,177
|
)
|
|
(226,584
|
)
|
|
(11,445
|
)
|
|
(13,564
|
)
|
||||
Deferred tax liability
|
(644
|
)
|
|
(449
|
)
|
|
—
|
|
|
—
|
|
||||
Total liabilities
|
$
|
(216,918
|
)
|
|
$
|
(231,594
|
)
|
|
$
|
(11,936
|
)
|
|
$
|
(14,218
|
)
|
|
|
|
|
|
|
|
|
||||||||
Accumulated other comprehensive income
|
48,957
|
|
|
70,377
|
|
|
961
|
|
|
2,805
|
|
||||
Net amount recognized
|
$
|
(148,320
|
)
|
|
$
|
(134,533
|
)
|
|
$
|
(10,370
|
)
|
|
$
|
(9,649
|
)
|
|
|
|
|
|
Other Postemployment
|
||||||||||
|
Pension Benefits
|
|
Benefits
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net actuarial loss
|
$
|
70,615
|
|
|
$
|
99,129
|
|
|
$
|
1,557
|
|
|
$
|
4,569
|
|
Net prior service cost
|
(2,684
|
)
|
|
(2,780
|
)
|
|
9
|
|
|
—
|
|
||||
Before tax AOCI
|
$
|
67,931
|
|
|
$
|
96,349
|
|
|
$
|
1,566
|
|
|
$
|
4,569
|
|
Less: Deferred taxes
|
18,974
|
|
|
25,972
|
|
|
605
|
|
|
1,764
|
|
||||
Net of tax AOCI
|
$
|
48,957
|
|
|
$
|
70,377
|
|
|
$
|
961
|
|
|
$
|
2,805
|
|
|
December 31,
|
||||||
(in thousands)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Projected benefit obligation
|
$
|
357,459
|
|
|
$
|
344,653
|
|
Accumulated benefit obligation
|
330,215
|
|
|
315,963
|
|
||
Fair value of plan assets
|
141,186
|
|
|
117,413
|
|
|
Pension Benefits
|
|
Other Postemployment
Benefits |
||||||||||||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
14,863
|
|
|
$
|
12,178
|
|
|
$
|
10,950
|
|
|
$
|
234
|
|
|
$
|
195
|
|
|
$
|
61
|
|
Interest cost
|
9,901
|
|
|
10,600
|
|
|
9,633
|
|
|
464
|
|
|
490
|
|
|
553
|
|
||||||
Expected return on assets
|
(4,998
|
)
|
|
(4,727
|
)
|
|
(5,184
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service cost (credit)
|
(133
|
)
|
|
(138
|
)
|
|
80
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net actuarial loss
|
5,150
|
|
|
1,995
|
|
|
1,584
|
|
|
303
|
|
|
264
|
|
|
189
|
|
||||||
Curtailment and settlement gains
|
(1,600
|
)
|
|
(303
|
)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost
|
$
|
23,183
|
|
|
$
|
19,605
|
|
|
$
|
17,067
|
|
|
$
|
1,003
|
|
|
$
|
949
|
|
|
$
|
803
|
|
|
Pension Benefits
|
|
Other Postemployment
Benefits |
||||||||||||||||||||
(in thousands)
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial (gain) loss
|
$
|
(23,364
|
)
|
|
$
|
55,662
|
|
|
$
|
8,352
|
|
|
$
|
(2,709
|
)
|
|
$
|
1,601
|
|
|
$
|
537
|
|
Net prior service (credit)
|
(37
|
)
|
|
(161
|
)
|
|
(2,845
|
)
|
|
11
|
|
|
—
|
|
|
—
|
|
||||||
Amortization
|
(5,017
|
)
|
|
(1,857
|
)
|
|
(1,664
|
)
|
|
(305
|
)
|
|
(264
|
)
|
|
(189
|
)
|
||||||
Total recognized in AOCI
|
$
|
(28,418
|
)
|
|
$
|
53,644
|
|
|
$
|
3,843
|
|
|
$
|
(3,003
|
)
|
|
$
|
1,337
|
|
|
$
|
348
|
|
Total recognized in net periodic benefit cost and AOCI
|
$
|
(5,235
|
)
|
|
$
|
73,249
|
|
|
$
|
20,910
|
|
|
$
|
(2,000
|
)
|
|
$
|
2,286
|
|
|
$
|
1,151
|
|
(in thousands)
|
Pension
Benefits
|
|
Other Postemployment
Benefits |
||||
|
|
|
|
||||
Amount of net prior service cost (credit)
|
$
|
(138
|
)
|
|
$
|
2
|
|
Amount of net loss
|
2,838
|
|
|
43
|
|
|
Pension Benefits
|
|
Other Postemployment
Benefits |
||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
3.2
|
%
|
|
2.8
|
%
|
|
4.0
|
%
|
|
4.8
|
%
|
|
3.5
|
%
|
|
4.0
|
%
|
Rate of compensation increase
|
2.7
|
%
|
|
2.7
|
%
|
|
2.8
|
%
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
Health care cost trend
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
8.5
|
%
|
|
8.0
|
%
|
|
7.5
|
%
|
Ultimate health care cost trend
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
5.0
|
%
|
|
5.0
|
%
|
|
5.0
|
%
|
Years until ultimate trend is reached
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
8.0
|
|
|
7.0
|
|
|
6.0
|
|
|
Pension Benefits
|
|
Other Postemployment
Benefits |
||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Discount rate
|
2.8
|
%
|
|
4.0
|
%
|
|
4.1
|
%
|
|
3.5
|
%
|
|
4.0
|
%
|
|
5.0
|
%
|
Expected return on plan assets
|
4.3
|
%
|
|
4.1
|
%
|
|
4.8
|
%
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
Rate of compensation increase
|
2.7
|
%
|
|
2.8
|
%
|
|
2.6
|
%
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
Health care cost trend
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
8.5
|
%
|
|
8.0
|
%
|
|
7.5
|
%
|
Ultimate health care cost trend
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
5.0
|
%
|
|
5.0
|
%
|
|
5.0
|
%
|
Years until ultimate trend is reached
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
8.0
|
|
|
7.0
|
|
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Measurement Date
|
12/31/2013
|
|
|
12/31/2012
|
|
|
12/31/2011
|
|
|
12/31/2013
|
|
|
12/31/2012
|
|
|
12/31/2011
|
|
|
Other Postemployment
Benefits |
||||||
(in thousands)
|
1% Increase
|
|
1% Decrease
|
||||
|
|
|
|
||||
Effect on total of service and interest cost components
|
$
|
161
|
|
|
$
|
(123
|
)
|
Effect on postemployment benefit obligation
|
2,104
|
|
|
(1,656
|
)
|
|
December 31, 2013
|
||||||||||||||
(in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Assets Category
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
15,231
|
|
|
$
|
15,231
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
U. S.
|
929
|
|
|
929
|
|
|
—
|
|
|
—
|
|
||||
International
|
37,904
|
|
|
37,904
|
|
|
—
|
|
|
—
|
|
||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed rate bonds (a)
|
51,066
|
|
|
51,066
|
|
|
—
|
|
|
—
|
|
||||
Other types of investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mutual funds (b)
|
3,367
|
|
|
3,367
|
|
|
—
|
|
|
—
|
|
||||
Real estate mutual funds
|
8,906
|
|
|
8,906
|
|
|
—
|
|
|
—
|
|
||||
Common trusts (c)
|
10,100
|
|
|
—
|
|
|
6,802
|
|
|
3,298
|
|
||||
Insurance contracts
|
13,240
|
|
|
—
|
|
|
3,739
|
|
|
9,501
|
|
||||
Hedge funds
|
2,046
|
|
|
—
|
|
|
—
|
|
|
2,046
|
|
||||
Real estate
|
376
|
|
|
—
|
|
|
—
|
|
|
376
|
|
||||
Total
|
$
|
143,165
|
|
|
$
|
117,403
|
|
|
$
|
10,541
|
|
|
$
|
15,221
|
|
|
December 31, 2012
|
||||||||||||||
(in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Assets Category
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
5,930
|
|
|
$
|
5,930
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
U. S.
|
1,015
|
|
|
1,015
|
|
|
—
|
|
|
—
|
|
||||
International
|
34,197
|
|
|
34,197
|
|
|
—
|
|
|
—
|
|
||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed rate bonds (a)
|
48,450
|
|
|
48,450
|
|
|
—
|
|
|
—
|
|
||||
Other types of investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mutual funds (b)
|
8,994
|
|
|
—
|
|
|
8,994
|
|
|
—
|
|
||||
Real estate mutual funds
|
9,713
|
|
|
9,713
|
|
|
—
|
|
|
—
|
|
||||
Common trusts (c)
|
2,708
|
|
|
—
|
|
|
—
|
|
|
2,708
|
|
||||
Insurance contracts
|
12,199
|
|
|
—
|
|
|
3,865
|
|
|
8,334
|
|
||||
Hedge funds
|
1,311
|
|
|
—
|
|
|
—
|
|
|
1,311
|
|
||||
Real estate
|
367
|
|
|
—
|
|
|
—
|
|
|
367
|
|
||||
Total
|
$
|
124,884
|
|
|
$
|
99,305
|
|
|
$
|
12,859
|
|
|
$
|
12,720
|
|
(a)
|
This category includes fixed income securities invested primarily in Swiss bonds, foreign bonds denominated in Swiss francs, foreign currency bonds, mortgage notes and pledged letters.
|
(b)
|
This category includes mutual funds balanced between moderate-income generation and moderate capital appreciation with investment allocations of approximately
50%
equities and
50%
fixed income investments.
|
(c)
|
This category includes common/collective funds with investments in approximately
65%
equities and
35%
in fixed income investments.
|
|
Changes within Level 3 Category for
|
||||||||||||||||||
|
Year Ended December 31, 2013
|
||||||||||||||||||
(in thousands)
|
Common
Trust
|
|
Insurance
Contracts
|
|
Hedge
Funds
|
|
Real
Estate
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2012
|
$
|
2,708
|
|
|
$
|
8,334
|
|
|
$
|
1,311
|
|
|
$
|
367
|
|
|
$
|
12,720
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Relating to assets still held at the reporting date
|
409
|
|
|
421
|
|
|
82
|
|
|
—
|
|
|
912
|
|
|||||
Relating to assets sold during the period
|
99
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|||||
Purchases, sales and settlements, net
|
82
|
|
|
637
|
|
|
596
|
|
|
—
|
|
|
1,315
|
|
|||||
Effect of exchange rate changes
|
—
|
|
|
109
|
|
|
57
|
|
|
9
|
|
|
175
|
|
|||||
Balance at December 31, 2013
|
$
|
3,298
|
|
|
$
|
9,501
|
|
|
$
|
2,046
|
|
|
$
|
376
|
|
|
$
|
15,221
|
|
|
Changes within Level 3 Category for
|
||||||||||||||||||
|
Year Ended December 31, 2012
|
||||||||||||||||||
(in thousands)
|
Common
Trust
|
|
Insurance
Contracts
|
|
Hedge
Funds
|
|
Real
Estate
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2011
|
$
|
2,083
|
|
|
$
|
5,820
|
|
|
$
|
890
|
|
|
$
|
358
|
|
|
$
|
9,151
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Relating to assets still held at the reporting date
|
284
|
|
|
1,700
|
|
|
52
|
|
|
—
|
|
|
2,036
|
|
|||||
Relating to assets sold during the period
|
8
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
14
|
|
|||||
Purchases, sales and settlements, net
|
333
|
|
|
533
|
|
|
331
|
|
|
—
|
|
|
1,197
|
|
|||||
Effect of exchange rate changes
|
—
|
|
|
281
|
|
|
32
|
|
|
9
|
|
|
322
|
|
|||||
Balance at December 31, 2012
|
$
|
2,708
|
|
|
$
|
8,334
|
|
|
$
|
1,311
|
|
|
$
|
367
|
|
|
$
|
12,720
|
|
(in thousands)
|
Pension
Benefits
|
|
Other
Postemployment Benefits |
||||
|
|
|
|
||||
2014
|
$
|
10,595
|
|
|
$
|
502
|
|
2015
|
11,697
|
|
|
497
|
|
||
2016
|
11,171
|
|
|
487
|
|
||
2017
|
12,221
|
|
|
504
|
|
||
2018
|
14,437
|
|
|
524
|
|
||
2019-2022
|
82,030
|
|
|
2,794
|
|
|
Severances
|
||||||||||||||
(in thousands)
|
2011 and
Prior Plans
|
|
2012 Plans
|
|
2013 Plans
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2012
|
$
|
1,495
|
|
|
$
|
11,412
|
|
|
$
|
—
|
|
|
$
|
12,907
|
|
Provisions and adjustments
|
—
|
|
|
1,314
|
|
|
8,615
|
|
|
9,929
|
|
||||
Amounts applied
|
(1,069
|
)
|
|
(9,832
|
)
|
|
(2,615
|
)
|
|
(13,516
|
)
|
||||
Change in estimates
|
(24
|
)
|
|
(2,014
|
)
|
|
(236
|
)
|
|
(2,274
|
)
|
||||
Balance at December 31, 2013
|
$
|
402
|
|
|
$
|
880
|
|
|
$
|
5,764
|
|
|
$
|
7,046
|
|
|
Lease/Contract Terminations
|
||||||||||||||
(in thousands)
|
2011 and
Prior Plans
|
|
2012 Plans
|
|
2013 Plans
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2012
|
$
|
792
|
|
|
$
|
682
|
|
|
$
|
—
|
|
|
$
|
1,474
|
|
Provisions and adjustments
|
—
|
|
|
77
|
|
|
1,999
|
|
|
2,076
|
|
||||
Amounts applied
|
(136
|
)
|
|
(626
|
)
|
|
(1,887
|
)
|
|
(2,649
|
)
|
||||
Change in estimates
|
$
|
—
|
|
|
(41
|
)
|
|
(14
|
)
|
|
(55
|
)
|
|||
Balance at December 31, 2013
|
$
|
656
|
|
|
$
|
92
|
|
|
$
|
98
|
|
|
$
|
846
|
|
|
Other Restructuring Costs
|
||||||||||
(in thousands)
|
2012 Plans
|
|
2013 Plans
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Balance at December 31, 2012
|
$
|
94
|
|
|
$
|
—
|
|
|
$
|
94
|
|
Provisions and adjustments
|
957
|
|
|
1,383
|
|
|
2,340
|
|
|||
Amounts applied
|
(994
|
)
|
|
(716
|
)
|
|
(1,710
|
)
|
|||
Change in estimates
|
1
|
|
|
(9
|
)
|
|
(8
|
)
|
|||
Balance at December 31, 2013
|
$
|
58
|
|
|
$
|
658
|
|
|
$
|
716
|
|
(in thousands)
|
December 31, 2012
|
|
Provisions and
Adjustments
|
|
Amounts
Applied
|
|
Change in Estimates
|
|
December 31, 2013
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Dental Consumable and Laboratory Businesses
|
$
|
9,132
|
|
|
$
|
1,236
|
|
|
$
|
(7,635
|
)
|
|
$
|
(1,390
|
)
|
|
$
|
1,343
|
|
Orthodontics/Canada/Mexico/Japan
|
361
|
|
|
164
|
|
|
(415
|
)
|
|
(4
|
)
|
|
106
|
|
|||||
Select Distribution Businesses
|
222
|
|
|
383
|
|
|
(266
|
)
|
|
—
|
|
|
339
|
|
|||||
Implants/Endodontics/Healthcare/Pacific Rim
|
4,760
|
|
|
11,869
|
|
|
(9,242
|
)
|
|
(943
|
)
|
|
6,444
|
|
|||||
All Other
|
—
|
|
|
693
|
|
|
(317
|
)
|
|
—
|
|
|
376
|
|
|||||
Total
|
$
|
14,475
|
|
|
$
|
14,345
|
|
|
$
|
(17,875
|
)
|
|
$
|
(2,337
|
)
|
|
$
|
8,608
|
|
Foreign Exchange Forward Contracts
|
|
Notional
Amounts Maturing in the Year
|
|
Fair Value Net
Asset (Liability)
|
||||||||
(in thousands)
|
|
2014
|
|
2015
|
|
December 31, 2013
|
||||||
|
|
|
|
|
|
|
||||||
Forward sale, 14.9 million Australian dollars
|
|
$
|
12,331
|
|
|
$
|
1,610
|
|
|
$
|
757
|
|
Forward purchase, 12.6 million British pounds
|
|
(20,916
|
)
|
|
—
|
|
|
193
|
|
|||
Forward sale, 46.5 million Canadian dollars
|
|
35,861
|
|
|
8,247
|
|
|
1,045
|
|
|||
Forward purchase, 22.7 million Danish kroner
|
|
(4,181
|
)
|
|
—
|
|
|
(4
|
)
|
|||
Forward sale, 212.9 million euros
|
|
243,739
|
|
|
47,344
|
|
|
(2,755
|
)
|
|||
Forward sale, 23.3 million Hong Kong dollars
|
|
3,006
|
|
|
—
|
|
|
133
|
|
|||
Forward sale, 870.6 million Japanese yen
|
|
8,263
|
|
|
—
|
|
|
(626
|
)
|
|||
Forward sale, 180.9 million Mexican pesos
|
|
13,837
|
|
|
—
|
|
|
46
|
|
|||
Forward purchase, 12.9 million Norwegian kroner
|
|
(2,118
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Forward sale, 0.5 million New Zealand dollars
|
|
417
|
|
|
—
|
|
|
2
|
|
|||
Forward sale, 17.0 million Polish zlotys
|
|
5,621
|
|
|
—
|
|
|
(73
|
)
|
|||
Forward sale, 3.2 million Singapore dollars
|
|
2,515
|
|
|
—
|
|
|
7
|
|
|||
Forward sale, 4.2 billion South Korean won
|
|
4,000
|
|
|
—
|
|
|
1
|
|
|||
Forward purchase, 1.3 billion Swedish kronor
|
|
(183,015
|
)
|
|
(28,429
|
)
|
|
(1,282
|
)
|
|||
Forward purchase, 48.1 million Swiss francs
|
|
(62,278
|
)
|
|
7,225
|
|
|
(1,009
|
)
|
|||
Forward sale, 71.6 million Taiwanese dollars
|
|
2,401
|
|
|
—
|
|
|
31
|
|
|||
Total foreign exchange forward contracts
|
|
$
|
59,483
|
|
|
$
|
35,997
|
|
|
$
|
(3,536
|
)
|
Interest Rate Swaps
|
|
Notional Amounts Maturing in the Year
|
|
Fair Value Net
Asset (Liability)
|
||||||||||||||||||||
(in thousands)
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018 and Beyond
|
|
December 31, 2013
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Euro
|
|
$
|
993
|
|
|
$
|
993
|
|
|
$
|
993
|
|
|
$
|
993
|
|
|
$
|
248
|
|
|
$
|
(341
|
)
|
Japanese yen
|
|
119,213
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||||
Swiss francs
|
|
—
|
|
|
—
|
|
|
72,829
|
|
|
—
|
|
|
—
|
|
|
(885
|
)
|
||||||
Total interest rate swaps
|
|
$
|
120,206
|
|
|
$
|
993
|
|
|
$
|
73,822
|
|
|
$
|
993
|
|
|
$
|
248
|
|
|
$
|
(1,179
|
)
|
Commodity Swap Contracts
|
|
Notional
Amounts Maturing in the Year
|
|
Fair Value Net
Asset (Liability)
|
||||||||
(in thousands)
|
|
2014
|
|
2015
|
|
December 31, 2013
|
||||||
|
|
|
|
|
|
|
||||||
Silver swap - U.S. dollar
|
|
$
|
1,446
|
|
|
$
|
112
|
|
|
$
|
(343
|
)
|
Platinum swap - U.S. dollar
|
|
1,351
|
|
|
101
|
|
|
(91
|
)
|
|||
Total commodity contracts
|
|
$
|
2,797
|
|
|
$
|
213
|
|
|
$
|
(434
|
)
|
Cross Currency Basis Swaps
|
|
Notional
Amounts Maturing in the Year
|
|
Fair Value Net Asset (Liability)
|
||||||||
(in thousands)
|
|
2014
|
|
2015
|
|
December 31, 2013
|
||||||
|
|
|
|
|
|
|
||||||
449.8 million euros at 1.45 pay U.S. dollar three-month LIBOR receive three-month Euro Inter-Bank Offered Rate
|
|
$
|
618,449
|
|
|
$
|
—
|
|
|
$
|
(33,800
|
)
|
141.4 million Swiss francs at 0.93 pay Swiss francs three-month LIBOR receive U.S. dollar three-month LIBOR
|
|
112,045
|
|
|
46,370
|
|
|
(6,692
|
)
|
|||
Total cross currency basis swaps
|
|
$
|
730,494
|
|
|
$
|
46,370
|
|
|
$
|
(40,492
|
)
|
Foreign Exchange Forward Contracts
|
|
Notional Amounts Maturing in the Year
|
|
Fair Value Net
Asset (Liability)
|
||||||||
(in thousands)
|
|
2014
|
|
2015
|
|
December 31, 2013
|
||||||
|
|
|
|
|
|
|
||||||
Forward sale, 555.8 million euros
|
|
$
|
705,078
|
|
|
$
|
59,127
|
|
|
$
|
(5,112
|
)
|
Total foreign exchange forward contracts
|
|
$
|
705,078
|
|
|
$
|
59,127
|
|
|
$
|
(5,112
|
)
|
Cross Currency Basis Swaps
|
|
Notional Amounts Maturing in the Year
|
|
Fair Value Net
Asset (Liability)
|
||||||||||||||||||||
(in thousands)
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
December 31, 2013
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
432.5 million Swiss francs at 0.93 pay Swiss francs three-month LIBOR receive U.S. dollar three-month LIBOR
|
|
$
|
90,084
|
|
|
$
|
63,417
|
|
|
$
|
112,045
|
|
|
$
|
112,045
|
|
|
$
|
107,003
|
|
|
$
|
(18,106
|
)
|
Total cross currency basis swaps
|
|
$
|
90,084
|
|
|
$
|
63,417
|
|
|
$
|
112,045
|
|
|
$
|
112,045
|
|
|
$
|
107,003
|
|
|
$
|
(18,106
|
)
|
|
|
|
|
|
|
|
|
Fair Value Net
|
||||||||
Interest Rate Swaps
|
|
Notional Amounts Maturing in the Year
|
|
Asset (Liability)
|
||||||||||||
(in thousands)
|
|
2014
|
|
2015
|
|
2016
|
|
December 31, 2013
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
U.S. dollar
|
|
$
|
45,000
|
|
|
$
|
60,000
|
|
|
$
|
45,000
|
|
|
$
|
2,359
|
|
Total interest rate swaps
|
|
$
|
45,000
|
|
|
$
|
60,000
|
|
|
$
|
45,000
|
|
|
$
|
2,359
|
|
|
|
December 31, 2013
|
|||||||||||||||
|
|
Prepaid
Expenses
and Other
Current Assets
|
|
Other
Noncurrent
Assets, Net
|
|
Accrued
Liabilities
|
|
Other
Noncurrent
Liabilities
|
|||||||||
(in thousands)
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|||||||||||||
Designated as Hedges
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Foreign exchange forward contracts
|
|
$
|
1,517
|
|
|
$
|
255
|
|
|
$
|
10,280
|
|
|
$
|
940
|
|
|
Commodity contracts
|
|
—
|
|
|
1
|
|
|
434
|
|
|
1
|
|
|||||
Interest rate swaps
|
|
789
|
|
|
1,617
|
|
|
466
|
|
|
419
|
|
|||||
Cross currency basis swaps
|
|
530
|
|
|
—
|
|
|
2,223
|
|
|
16,413
|
|
|||||
Total
|
|
$
|
2,836
|
|
|
$
|
1,873
|
|
|
$
|
13,403
|
|
|
$
|
17,773
|
|
|
Not Designated as Hedges
|
|
|
|
||||||||||||||
Foreign exchange forward contracts
|
|
$
|
3,128
|
|
|
$
|
—
|
|
|
$
|
2,328
|
|
|
$
|
—
|
|
|
DIO equity option contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|||||
Interest rate swaps
|
|
—
|
|
|
—
|
|
|
85
|
|
|
256
|
|
|||||
Cross currency basis swaps
|
|
—
|
|
|
—
|
|
|
38,551
|
|
|
1,941
|
|
|||||
Total
|
|
$
|
3,128
|
|
|
$
|
—
|
|
|
$
|
40,964
|
|
|
$
|
2,339
|
|
|
|
December 31, 2012
|
||||||||||||||
|
|
Prepaid
Expenses
and Other
Current Assets
|
|
Other
Noncurrent
Assets, Net
|
|
Accrued
Liabilities
|
|
Other
Noncurrent
Liabilities
|
||||||||
(in thousands)
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Designated as Hedges
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts
|
|
$
|
2,353
|
|
|
$
|
65
|
|
|
$
|
2,243
|
|
|
$
|
844
|
|
Commodity contracts
|
|
—
|
|
|
—
|
|
|
95
|
|
|
—
|
|
||||
Interest rate swaps
|
|
2,192
|
|
|
2,535
|
|
|
525
|
|
|
948
|
|
||||
Cross currency basis swaps
|
|
8,191
|
|
|
—
|
|
|
97,281
|
|
|
1,588
|
|
||||
Total
|
|
$
|
12,736
|
|
|
$
|
2,600
|
|
|
$
|
100,144
|
|
|
$
|
3,380
|
|
Not Designated as Hedges
|
|
|
|
|||||||||||||
|
||||||||||||||||
Foreign exchange forward contracts
|
|
$
|
6,652
|
|
|
$
|
—
|
|
|
$
|
1,353
|
|
|
$
|
—
|
|
DIO equity option contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153
|
|
||||
Interest rate swaps
|
|
—
|
|
|
—
|
|
|
114
|
|
|
416
|
|
||||
Cross currency basis swaps
|
|
537
|
|
|
—
|
|
|
40,026
|
|
|
55,858
|
|
||||
Total
|
|
$
|
7,189
|
|
|
$
|
—
|
|
|
$
|
41,493
|
|
|
$
|
56,427
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Consolidated Balance Sheets
|
|
|
||||||||||||||
(in thousands)
|
|
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
|
|
$
|
4,900
|
|
|
$
|
—
|
|
|
$
|
4,900
|
|
|
$
|
(4,641
|
)
|
|
$
|
—
|
|
|
$
|
259
|
|
Commodity contracts
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||
Interest rate swaps
|
|
2,406
|
|
|
—
|
|
|
2,406
|
|
|
(1,979
|
)
|
|
—
|
|
|
427
|
|
||||||
Cross currency basis swaps
|
|
530
|
|
|
—
|
|
|
530
|
|
|
(530
|
)
|
|
—
|
|
|
—
|
|
||||||
Total Assets
|
|
$
|
7,837
|
|
|
$
|
—
|
|
|
$
|
7,837
|
|
|
$
|
(7,151
|
)
|
|
$
|
—
|
|
|
$
|
686
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Consolidated Balance Sheets
|
|
|
||||||||||||||
(in thousands)
|
|
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
|
|
$
|
13,548
|
|
|
$
|
—
|
|
|
$
|
13,548
|
|
|
$
|
(3,467
|
)
|
|
$
|
—
|
|
|
$
|
10,081
|
|
Commodity contracts
|
|
435
|
|
|
—
|
|
|
435
|
|
|
(1
|
)
|
|
—
|
|
|
434
|
|
||||||
DIO equity option contracts
|
|
142
|
|
|
—
|
|
|
142
|
|
|
—
|
|
|
—
|
|
|
142
|
|
||||||
Interest rate swaps
|
|
1,226
|
|
|
—
|
|
|
1,226
|
|
|
(62
|
)
|
|
—
|
|
|
1,164
|
|
||||||
Cross currency basis swaps
|
|
59,128
|
|
|
—
|
|
|
59,128
|
|
|
(3,621
|
)
|
|
—
|
|
|
55,507
|
|
||||||
Total Liabilities
|
|
$
|
74,479
|
|
|
$
|
—
|
|
|
$
|
74,479
|
|
|
$
|
(7,151
|
)
|
|
$
|
—
|
|
|
$
|
67,328
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Consolidated Balance Sheets
|
|
|
||||||||||||||
(in thousands)
|
|
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
|
|
$
|
9,070
|
|
|
$
|
—
|
|
|
$
|
9,070
|
|
|
$
|
(6,131
|
)
|
|
$
|
—
|
|
|
$
|
2,939
|
|
Interest rate swaps
|
|
4,727
|
|
|
—
|
|
|
4,727
|
|
|
(3,146
|
)
|
|
—
|
|
|
1,581
|
|
||||||
Cross currency basis swaps
|
|
8,728
|
|
|
—
|
|
|
8,728
|
|
|
(7,821
|
)
|
|
—
|
|
|
907
|
|
||||||
Total Assets
|
|
$
|
22,525
|
|
|
$
|
—
|
|
|
$
|
22,525
|
|
|
$
|
(17,098
|
)
|
|
$
|
—
|
|
|
$
|
5,427
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Consolidated Balance Sheets
|
|
|
||||||||||||||
(in thousands)
|
|
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
|
|
$
|
4,440
|
|
|
$
|
—
|
|
|
$
|
4,440
|
|
|
$
|
(2,339
|
)
|
|
$
|
—
|
|
|
$
|
2,101
|
|
Commodity contracts
|
|
95
|
|
|
—
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
95
|
|
||||||
DIO equity option contracts
|
|
153
|
|
|
—
|
|
|
153
|
|
|
—
|
|
|
—
|
|
|
153
|
|
||||||
Interest rate swaps
|
|
2,003
|
|
|
—
|
|
|
2,003
|
|
|
(1,339
|
)
|
|
—
|
|
|
664
|
|
||||||
Cross currency basis swaps
|
|
194,753
|
|
|
—
|
|
|
194,753
|
|
|
(13,420
|
)
|
|
—
|
|
|
181,333
|
|
||||||
Total Liabilities
|
|
$
|
201,444
|
|
|
$
|
—
|
|
|
$
|
201,444
|
|
|
$
|
(17,098
|
)
|
|
$
|
—
|
|
|
$
|
184,346
|
|
Derivatives in Cash Flow Hedging
|
|
Affected Line Item in the Consolidated Statements of Operations
|
|
Ineffective Portion
Recognized
in Income
|
||
|
|
|||||
(in thousands)
|
|
|||||
|
|
|
|
|
||
Foreign exchange forward contracts
|
|
Other expense (income), net
|
|
$
|
666
|
|
Commodity contracts
|
|
Interest expense
|
|
(56
|
)
|
|
Total
|
|
|
|
$
|
610
|
|
Derivatives in Cash Flow Hedging
|
|
Affected Line Item in the Consolidated Statements of Operations
|
|
Ineffective Portion
Recognized
in Income
|
||
|
|
|||||
(in thousands)
|
|
|||||
|
|
|
|
|
||
Foreign exchange forward contracts
|
|
Other expense (income), net
|
|
$
|
915
|
|
Commodity contracts
|
|
Interest expense
|
|
(25
|
)
|
|
Total
|
|
|
|
$
|
890
|
|
Derivatives Not Designated as Hedging
|
|
|
|
Gain (Loss) Recognized in Income
|
||||||
|
|
Affected Line Item in the Consolidated Statements of Operations
|
|
|||||||
(in thousands)
|
|
|
2013
|
|
2012
|
|||||
|
|
|
|
|
|
|
||||
Foreign exchange forward contracts (a)
|
|
Other expense (income), net
|
|
$
|
6,733
|
|
|
$
|
(1,224
|
)
|
DIO equity option contracts
|
|
Other expense (income), net
|
|
17
|
|
|
272
|
|
||
Interest rate swaps
|
|
Interest expense
|
|
6
|
|
|
(155
|
)
|
||
Cross currency basis swaps (a)
|
|
Other expense (income), net
|
|
15,483
|
|
|
12,323
|
|
||
Total
|
|
|
|
$
|
22,239
|
|
|
$
|
11,216
|
|
|
December 31,
|
||||||
(in thousands, net of tax)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Beginning balance
|
$
|
(17,481
|
)
|
|
$
|
(12,737
|
)
|
|
|
|
|
||||
Changes in fair value of derivatives
|
(6,234
|
)
|
|
105
|
|
||
Reclassifications to earnings from equity
|
1,964
|
|
|
(4,849
|
)
|
||
Total activity
|
(4,270
|
)
|
|
(4,744
|
)
|
||
Ending balance
|
$
|
(21,751
|
)
|
|
$
|
(17,481
|
)
|
|
December 31,
|
||||||
(in thousands, net of tax)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Beginning balance
|
$
|
(71,358
|
)
|
|
$
|
(143,730
|
)
|
|
|
|
|
||||
Foreign currency translation adjustment
|
72,159
|
|
|
83,283
|
|
||
Changes in fair value of:
|
|
|
|
|
|
||
Foreign currency debt
|
14,531
|
|
|
10,097
|
|
||
Derivative hedge instruments
|
(25,453
|
)
|
|
(21,008
|
)
|
||
Total activity
|
61,237
|
|
|
72,372
|
|
||
Ending balance
|
$
|
(10,121
|
)
|
|
$
|
(71,358
|
)
|
|
December 31, 2013
|
||||||||||||||
(in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
2,406
|
|
|
$
|
—
|
|
|
$
|
2,406
|
|
|
$
|
—
|
|
Commodity contracts
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Cross currency basis swaps
|
530
|
|
|
—
|
|
|
530
|
|
|
—
|
|
||||
Foreign exchange forward contracts
|
4,900
|
|
|
—
|
|
|
4,900
|
|
|
—
|
|
||||
Corporate convertible bonds
|
70,019
|
|
|
—
|
|
|
—
|
|
|
70,019
|
|
||||
Total assets
|
$
|
77,856
|
|
|
$
|
—
|
|
|
$
|
7,837
|
|
|
$
|
70,019
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swaps
|
$
|
1,226
|
|
|
$
|
—
|
|
|
$
|
1,226
|
|
|
$
|
—
|
|
Commodity contracts
|
435
|
|
|
—
|
|
|
435
|
|
|
—
|
|
||||
Cross currency basis swaps
|
59,128
|
|
|
—
|
|
|
59,128
|
|
|
—
|
|
||||
Foreign exchange forward contracts
|
13,548
|
|
|
—
|
|
|
13,548
|
|
|
—
|
|
||||
Long-term debt
|
152,370
|
|
|
—
|
|
|
152,370
|
|
|
—
|
|
||||
DIO equity option contracts
|
142
|
|
|
—
|
|
|
—
|
|
|
142
|
|
||||
Total liabilities
|
$
|
226,849
|
|
|
$
|
—
|
|
|
$
|
226,707
|
|
|
$
|
142
|
|
|
December 31, 2012
|
||||||||||||||
(in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
4,727
|
|
|
$
|
—
|
|
|
$
|
4,727
|
|
|
$
|
—
|
|
Cross currency basis swaps
|
8,728
|
|
|
—
|
|
|
8,728
|
|
|
—
|
|
||||
Foreign exchange forward contracts
|
9,070
|
|
|
—
|
|
|
9,070
|
|
|
—
|
|
||||
Corporate convertible bonds
|
75,143
|
|
|
—
|
|
|
—
|
|
|
75,143
|
|
||||
Total assets
|
$
|
97,668
|
|
|
$
|
—
|
|
|
$
|
22,525
|
|
|
$
|
75,143
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swaps
|
$
|
2,003
|
|
|
$
|
—
|
|
|
$
|
2,003
|
|
|
$
|
—
|
|
Commodity contracts
|
95
|
|
|
—
|
|
|
95
|
|
|
—
|
|
||||
Cross currency basis swaps
|
194,753
|
|
|
—
|
|
|
194,753
|
|
|
—
|
|
||||
Foreign exchange forward contracts
|
4,440
|
|
|
—
|
|
|
4,440
|
|
|
—
|
|
||||
Long-term debt
|
154,560
|
|
|
—
|
|
|
154,560
|
|
|
—
|
|
||||
DIO equity option contracts
|
153
|
|
|
$
|
—
|
|
|
—
|
|
|
153
|
|
|||
Total liabilities
|
$
|
356,004
|
|
|
$
|
—
|
|
|
$
|
355,851
|
|
|
$
|
153
|
|
|
Corporate
|
|
DIO Equity
|
||||
(in thousands)
|
Convertible
|
|
Options
|
||||
|
Bonds
|
|
Contracts
|
||||
|
|
|
|
||||
Balance at December 31, 2012
|
$
|
75,143
|
|
|
$
|
(153
|
)
|
Unrealized loss:
|
|
|
|
||||
Reported in AOCI
|
(7,592
|
)
|
|
—
|
|
||
Unrealized gain:
|
|
|
|
||||
Reported in other expense (income), net
|
—
|
|
|
17
|
|
||
Effect of exchange rate changes
|
2,468
|
|
|
(6
|
)
|
||
Balance at December 31, 2013
|
$
|
70,019
|
|
|
$
|
(142
|
)
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Rounding
|
|
Total
Year
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
732,084
|
|
|
$
|
761,010
|
|
|
$
|
704,018
|
|
|
$
|
753,658
|
|
|
$
|
—
|
|
|
$
|
2,950,770
|
|
Gross profit
|
388,200
|
|
|
414,956
|
|
|
376,417
|
|
|
397,839
|
|
|
—
|
|
|
1,577,412
|
|
||||||
Operating income
|
93,858
|
|
|
122,866
|
|
|
105,021
|
|
|
97,421
|
|
|
—
|
|
|
419,166
|
|
||||||
Net income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
DENTSPLY International
|
71,685
|
|
|
87,228
|
|
|
79,851
|
|
|
74,428
|
|
|
—
|
|
|
313,192
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per common share - basic
|
$
|
0.50
|
|
|
$
|
0.61
|
|
|
$
|
0.56
|
|
|
$
|
0.52
|
|
|
$
|
0.01
|
|
|
$
|
2.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per common share - diluted
|
$
|
0.49
|
|
|
$
|
0.60
|
|
|
$
|
0.55
|
|
|
$
|
0.51
|
|
|
$
|
0.01
|
|
|
$
|
2.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash dividends declared per common share
|
$
|
0.0625
|
|
|
$
|
0.0625
|
|
|
$
|
0.0625
|
|
|
$
|
0.0625
|
|
|
$
|
—
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
716,413
|
|
|
$
|
762,994
|
|
|
$
|
695,734
|
|
|
$
|
753,288
|
|
|
$
|
—
|
|
|
$
|
2,928,429
|
|
Gross profit
|
392,750
|
|
|
407,469
|
|
|
364,115
|
|
|
392,053
|
|
|
—
|
|
|
1,556,387
|
|
||||||
Operating income
|
87,160
|
|
|
108,907
|
|
|
88,666
|
|
|
97,207
|
|
|
(1
|
)
|
|
381,939
|
|
||||||
Net income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
DENTSPLY International
|
53,284
|
|
|
80,764
|
|
|
53,364
|
|
|
126,800
|
|
|
1
|
|
|
314,213
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per common share - basic
|
$
|
0.38
|
|
|
$
|
0.57
|
|
|
$
|
0.38
|
|
|
$
|
0.89
|
|
|
$
|
—
|
|
|
$
|
2.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per common share - diluted
|
$
|
0.37
|
|
|
$
|
0.56
|
|
|
$
|
0.37
|
|
|
$
|
0.88
|
|
|
$
|
—
|
|
|
$
|
2.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash dividends declared per common share
|
$
|
0.055
|
|
|
$
|
0.055
|
|
|
$
|
0.055
|
|
|
$
|
0.055
|
|
|
$
|
—
|
|
|
$
|
0.220
|
|
DENTSPLY INTERNATIONAL INC.
|
||
|
|
|
By:
|
/s/
|
Bret W. Wise
|
|
|
Bret W. Wise
|
|
|
Chairman of the Board and
|
|
|
Chief Executive Officer
|
/s/
|
Bret W. Wise
|
|
February 20, 2014
|
|
Bret W. Wise
|
|
Date
|
|
Chairman of the Board and
|
|
|
|
Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
/s/
|
Christopher T. Clark
|
|
February 20, 2014
|
|
Christopher T. Clark
|
|
Date
|
|
President and
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
|
/s/
|
Dr. Michael C. Alfano
|
|
February 20, 2014
|
|
Dr. Michael C. Alfano
|
|
Date
|
|
Director
|
|
|
|
|
|
|
/s/
|
Eric K. Brandt
|
|
February 20, 2014
|
|
Eric K. Brandt
|
|
Date
|
|
Director
|
|
|
|
|
|
|
/s/
|
Paula H. Cholmondeley
|
|
February 20, 2014
|
|
Paula H. Cholmondeley
|
|
Date
|
|
Director
|
|
|
|
|
|
|
/s/
|
Michael J. Coleman
|
|
February 20, 2014
|
|
Michael J. Coleman
|
|
Date
|
|
Director
|
|
|
|
|
|
|
/s/
|
Willie A. Deese
|
|
February 20, 2014
|
|
Willie A. Deese
|
|
Date
|
|
Director
|
|
|
|
|
|
|
/s/
|
William F. Hecht
|
|
February 20, 2014
|
|
William F. Hecht
|
|
Date
|
|
Director
|
|
|
|
|
|
|
/s/
|
Leslie A. Jones
|
|
February 20, 2014
|
|
Leslie A. Jones
|
|
Date
|
|
Director
|
|
|
|
|
|
|
/s/
|
Francis J. Lunger
|
|
February 20, 2014
|
|
Francis J. Lunger
|
|
Date
|
|
Director
|
|
|
|
|
|
|
/s/
|
John L. Miclot
|
|
February 20, 2014
|
|
John L. Miclot
|
|
Date
|
|
Director
|
|
|
|
|
|
|
/s/
|
John C. Miles II
|
|
February 20, 2014
|
|
John C. Miles II
|
|
Date
|
|
Director
|
|
|
|
|
|
|
1.
|
The name of the corporation is DENTSPLY International Inc.
|
2.
|
The address of its registered office in the State of Delaware is Corporation Trust Center, 1209 Orange Street, in the City of Wilmington, County of New Castle. The name of the registered agent at such address is The Corporation Trust Company.
|
3.
|
The nature and business or purposes to be conducted or promoted is:
To engage is any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware. |
4A.
|
Number of Shares and Classes
. The aggregate number of shares of stock which the corporation shall have authority to issue is Two Hundred Million Two Hundred Fifty Thousand (200,250,000) shares, which shall be divided into two classes as follows:
|
(1)
|
Two Hundred Million (200,000,000) shares of Common Stock, the par value of each of such shares is One Cent ($.01), amounting in the aggregate to Two Million Dollars ($2,000,000.00); and
|
(2)
|
Two Hundred Fifty Thousand (250,000) shares of Preferred Stock, the par value of each of which shares is One Dollar ($1.00), amounting in the aggregate to Two Hundred Fifty Thousand Dollars ($250,000.00).
|
4B.
|
Preferred Stock
. The corporation’s board of directors is hereby expressly authorized to provide by resolution or resolutions from time to time for the issue of the Preferred Stock in one or more series, the shares of each of which series may have such voting powers, full or limited, or no voting powers, and such designations, preferences and relative, participating, optional or other special rights, and qualification, limitations or restrictions thereof, as shall be permitted under the General Corporation Law of the State of Delaware and as shall be stated in the resolution or resolutions providing for the issue of such stock adopted by the board of directors pursuant to the authority expressly vested in the board of directors hereby.
|
4C.
|
Common Stock
.
|
(1)
|
Voting
. Except as otherwise required by the General Corporation Law of the State of Delaware, this Amended and Restated Certificate of Incorporation or any series of Preferred Stock designated by the board of directors, all of the voting power of the corporation shall be vested in the holders of the Common Stock and each holder of the Common Stock shall have one (1) vote for each share of such Common Stock held by him of record on all matters voted upon by the Stockholders.
|
(2)
|
Dividends
. Whenever all accrued dividends on any series of Preferred Stock have been paid or declared and a sum sufficient for the payment thereof set aside, the board of directors of the corporation may declare a dividend on the Common Stock out of the remaining unreserved and unrestricted surplus of the corporation, and the holders of the Common Stock shall share ratably in such dividend in proportion to the number of shares of such Common Stock held by each.
|
(3)
|
Liquidation
. Except as otherwise required by any series of Preferred Stock designated by the board of directors, in the event of any voluntary or involuntary liquidation, dissolution or winding up of the corporation, after distribution in full of the preferential amounts to be distributed to the holders of any series of Preferred Stock, the remaining assets of the corporation shall be distributed ratably among the holders of the Common Stock in proportion to the number of shares of such Common Stock held by each.
|
5.
|
The business and affairs of the corporation shall be managed by or under the direction of a board of directors consisting of such number of directors as is determined from time to time by resolution adopted by affirmative vote of a majority of the entire board of directors; provided, however, that in no event shall the number of directors be less than three (3). The term of office for the class of directors elected in 2011 shall expire at the annual meeting of stockholders to be held in 2014, the term of office for the class of directors elected in 2012 shall expire at the annual meeting of stockholders to be held in 2015, and the term of office for the class of directors elected in 2013 shall expire at the annual meeting of stockholders to be held in 2016, with the members of each class to hold office until their successors are elected and qualified. Commencing at the annual meeting of stockholders to be held in 2014, directors succeeding those whose terms are then expired shall be elected to hold office for a term expiring at the annual meeting of stockholders held in the year following the year of their election and until their successors are elected and qualified. Commencing with the annual meeting of stockholders to be held in 2016, the classification of the board of directors shall terminate and all directors shall be of one class. Any additional director elected to fill a vacancy resulting from an increase in the number of directors shall hold office until the next annual meeting of stockholders, but in no case will a decrease in the number of directors shorten the term of any incumbent director. A director shall hold office until the annual meeting for the year in which his or her term expires
|
6.
|
The corporation is to have perpetual existence.
|
7.
|
Notwithstanding any other provision of this Amended and Restated Certificate of Incorporation or the corporation’s by-laws (and notwithstanding the fact that some lesser percentage may be specified by law, this Amended and Restated Certificate of Incorporation or the corporation’s by-laws, this Amended and Restated Certificate of Incorporation or the corporation’s by-laws), the corporation’s by-laws may be amended, altered or repealed, and new by-laws enacted, only by the affirmative vote of not less than two-thirds (2/3) of the outstanding shares of capital stock of the corporation entitled to vote at a meeting of stockholders duly called for such purpose, or by a vote of not less than three-quarters (3/4) of the entire board of directors then in office.
|
8.
|
Elections of directors need not be by written ballot unless the by-laws of the corporation shall so provide.
|
9.
|
A director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director except for liability (i) for any breach of the director’s duty of loyalty to the corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or knowing violation of law, (iii) under Section 174 of the Delaware General Corporation Law, or (iv) for any transaction from which the director derived any improper personal benefit.
|
10.
|
The stockholders of the corporation shall have no authority to call a special meeting of the stockholders.
|
11.
|
No action required to be taken or which may be taken at any annual or special meeting of stockholders of the corporation may be taken without a meeting, and the power of the stockholders to consent in writing, without a meeting, to the taking of any action is specifically denied.
|
|
|
|
|
Page
|
|
ARTICLE 1 STOCKHOLDERS' MEETING
|
|
1
|
|
||
|
|
|
|
|
|
Section 1.
|
|
Annual Meetings
|
|
1
|
|
Section 2.
|
|
Special Meetings
|
|
1
|
|
Section 3.
|
|
Place of Meeting
|
|
1
|
|
Section 4.
|
|
Notice of Meeting
|
|
1
|
|
Section 5.
|
|
Fixing of Record Date
|
|
1
|
|
Section 6.
|
|
Quorum
|
|
2
|
|
Section 7.
|
|
Proxies
|
|
2
|
|
Section 8.
|
|
Voting of Shares
|
|
2
|
|
Section 9.
|
|
List of Stockholders
|
|
3
|
|
Section 10.
|
|
Waiver of Notice by Stockholders
|
|
3
|
|
Section 11.
|
|
Advance Notice of Stockholder-Proposed Business at Annual Meetings
|
|
3
|
|
Section 12.
|
|
Procedure for Nomination of Directors
|
|
4
|
|
Section 13.
|
|
Election of Directors
|
|
6
|
|
|
|
|
|
|
|
ARTICLE II BOARD OF DIRECTORS
|
|
6
|
|
||
|
|
|
|
|
|
Section 1.
|
|
General Powers
|
|
6
|
|
Section 2.
|
|
Number of Directors, Tenure and Qualifications
|
|
6
|
|
Section 3.
|
|
Regular Meetings
|
|
7
|
|
Section 4.
|
|
Special Meetings
|
|
7
|
|
Section 5.
|
|
Notice
|
|
7
|
|
Section 6.
|
|
Quorum
|
|
8
|
|
Section 7.
|
|
Manner of Acting
|
|
8
|
|
Section 8.
|
|
Vacancies
|
|
8
|
|
Section 9.
|
|
Compensation
|
|
8
|
|
Section 10.
|
|
Presumption of Assent
|
|
8
|
|
Section 11.
|
|
Committees
|
|
8
|
|
Section 12.
|
|
Removal of Directors
|
|
9
|
|
Section 13.
|
|
Action of the Board by Written Consent
|
|
9
|
|
Section 14.
|
|
Conferences
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
ARTICLE III OFFICERS
|
|
9
|
|
||
|
|
|
|
|
|
Section 1.
|
|
Number
|
|
9
|
|
Section 2.
|
|
Election and Term of Office
|
|
9
|
|
Section 3.
|
|
Removal
|
|
10
|
|
Section 4.
|
|
Chairman of the Board
|
|
10
|
|
Section 5.
|
|
Vice Chairman of the Board
|
|
10
|
|
Section 6.
|
|
Chief Executive Officer
|
|
10
|
|
Section 7.
|
|
President
|
|
10
|
|
Section 8.
|
|
Senior Vice President and Vice Presidents
|
|
10
|
|
Section 9.
|
|
Secretary and Assistant Secretaries
|
|
10
|
|
Section 10.
|
|
Treasurer and Assistant Treasurer
|
|
11
|
|
Section 11.
|
|
Salaries
|
|
11
|
|
Section 12.
|
|
Representation in Other Companies
|
|
11
|
|
|
|
|
|
|
|
ARTICLE IV STOCK AND TRANSFER OF STOCK
|
|
11
|
|
||
|
|
|
|
|
|
Section 1.
|
|
Shares of Stock
|
|
11
|
|
Section 2.
|
|
Transfer of Stock
|
|
12
|
|
|
|
|
|
|
|
ARTICLE V INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS
|
|
12
|
|
||
|
|
|
|
|
|
Section 1.
|
|
Indemnification Generally
|
|
12
|
|
Section 2.
|
|
Indemnification in Actions By or In the Right of the Corporation
|
|
13
|
|
Section 3.
|
|
Success on the Merits; Indemnification Against Expenses
|
|
13
|
|
Section 4.
|
|
Determination that Indemnification if Proper
|
|
13
|
|
Section 5.
|
|
Insurance; Indemnification Agreements
|
|
14
|
|
Section 6.
|
|
Advancement of Expenses
|
|
14
|
|
Section 7.
|
|
Rights Not Exclusive
|
|
14
|
|
Section 8.
|
|
Severability
|
|
14
|
|
Section 9.
|
|
Modification
|
|
14
|
|
|
|
Page
|
|
ARTICLE I Definitions
|
1
|
|
|
|
SECTION 1.01. Defined Terms
|
1
|
|
|
SECTION 1.02. Classification of Loans and Borrowings
|
15
|
|
|
SECTION 1.03. Terms Generally
|
15
|
|
|
SECTION 1.04. Accounting Terms; GAAP
|
16
|
|
|
SECTION 1.05. Status of Obligations
|
16
|
|
|
|
|
|
ARTICLE II Amounts and Terms of the Loans
|
16
|
|
|
|
SECTION 2.01. Commitments
|
16
|
|
|
SECTION 2.02. Loans and Borrowings; Repayment Terms
|
17
|
|
|
SECTION 2.03. [Intentionally Omitted]
|
17
|
|
|
SECTION 2.04. [Intentionally Omitted]
|
17
|
|
|
SECTION 2.05. [Intentionally Omitted]
|
17
|
|
|
SECTION 2.06. [Intentionally Omitted]
|
17
|
|
|
SECTION 2.07. Funding of Borrowings
|
17
|
|
|
SECTION 2.08. Interest Elections
|
17
|
|
|
SECTION 2.09. Termination of Commitments
|
19
|
|
|
SECTION 2.10. Evidence of Debt
|
19
|
|
|
SECTION 2.11. Prepayment of Loans
|
20
|
|
|
SECTION 2.12. Fees
|
20
|
|
|
SECTION 2.13. Interest
|
21
|
|
|
SECTION 2.14. Alternate Rate of Interest
|
21
|
|
|
SECTION 2.15. Increased Costs
|
22
|
|
|
SECTION 2.16. Break Funding Payments
|
23
|
|
|
SECTION 2.17. Taxes
|
23
|
|
|
SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
|
27
|
|
|
SECTION 2.19. Mitigation Obligations; Replacement of Lenders
|
28
|
|
|
|
|
|
ARTICLE III Representations and Warranties
|
29
|
|
|
|
SECTION 3.01. Representations and Warranties of the Borrower
|
29
|
|
|
|
|
|
ARTICLE IV Conditions
|
31
|
|
|
|
SECTION 4.01. Effective Date
|
31
|
|
|
|
|
|
ARTICLE V Affirmative Covenants
|
32
|
|
|
|
SECTION 5.01. Compliance with Laws, Etc.
|
32
|
|
|
SECTION 5.02. Payment of Taxes, Etc.
|
32
|
|
|
SECTION 5.03. Maintenance of Insurance
|
33
|
|
|
SECTION 5.04. Preservation of Corporate Existence, Etc
|
33
|
|
|
SECTION 5.05. Visitation Rights
|
33
|
|
|
SECTION 5.06. Keeping of Books
|
33
|
|
|
SECTION 5.07. Maintenance of Properties, Etc.
|
33
|
|
|
SECTION 5.08. Transactions with Affiliates
|
33
|
|
|
SECTION 5.09. Reporting Requirements
|
34
|
|
|
SECTION 5.10. Use of Proceeds
|
35
|
|
|
SECTION 5.11. Subsequent Credit Terms
|
35
|
|
|
SECTION 5.12. Anti-Terrorism Laws
|
35
|
|
|
|
|
|
ARTICLE VI Negative Covenants
|
36
|
|
|
|
SECTION 6.01. Liens, Etc.
|
36
|
|
|
SECTION 6.02. Mergers, Etc.
|
37
|
|
|
SECTION 6.03. Accounting Changes
|
37
|
|
|
SECTION 6.04. Subsidiary Debt
|
37
|
|
|
SECTION 6.05. Change in Nature of Business
|
37
|
|
|
SECTION 6.06. Financial Covenants
|
38
|
|
|
|
|
|
ARTICLE VII Events of Default
|
38
|
|
|
|
SECTION 7.01. Events of Default
|
38
|
|
|
|
|
|
ARTICLE VIII The Administrative Agent
|
40
|
|
|
|
SECTION 8.01. Appointment and Authority
|
40
|
|
|
SECTION 8.02. Rights as a Lender
|
40
|
|
|
SECTION 8.03. Exculpatory Provisions
|
40
|
|
|
SECTION 8.04. Reliance by Administrative Agent
|
41
|
|
|
SECTION 8.05. Delegation of Duties
|
42
|
|
|
SECTION 8.06. Resignation of Administrative Agent
|
42
|
|
|
SECTION 8.07. Non-Reliance on Administrative Agent and Other Lenders
|
42
|
|
|
SECTION 8.08. No Other Duties, etc.
|
42
|
|
|
SECTION 8.09. No Reliance on Administrative Agent’s Customer Identification Program
|
43
|
|
|
|
|
|
ARTICLE IX Miscellaneous
|
43
|
|
|
|
SECTION 9.01. Notices; Effectiveness; Electronic Communication.
|
43
|
|
|
SECTION 9.02. Waivers; Amendments
|
44
|
|
|
SECTION 9.03. Expenses; Indemnity; Damage Waiver
|
45
|
|
|
SECTION 9.04. Successors and Assigns
|
46
|
|
|
SECTION 9.05. Survival
|
50
|
|
|
SECTION 9.06. Counterparts; Integration; Effectiveness
|
50
|
|
|
SECTION 9.07. Severability
|
50
|
|
|
SECTION 9.08. Right of Setoff
|
50
|
|
|
SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
|
51
|
|
|
SECTION 9.10. WAIVER OF JURY TRIAL
|
51
|
|
|
SECTION 9.11. Headings
|
52
|
|
|
SECTION 9.12. Confidentiality
|
52
|
|
|
SECTION 9.13. USA PATRIOT Act
|
52
|
|
Adjusted LIBO Rate =
|
or appropriate successor as shown on
Bloomberg Page BBAM1 |
|
Index Debt Ratings (Moody’s/S&P):
|
Eurocurrency Spread
|
ABR Spread
|
Category 1
:
|
A2/A or higher
|
0.875%
|
0%
|
Category 2
:
|
A3/A-
|
1.00%
|
0%
|
Category 3
:
|
Baa1/BBB+
|
1.125%
|
0.125%
|
Category 4
:
|
Baa2/BBB
|
1.25%
|
0.25%
|
Category 5
:
|
Baa3/BBB-
|
1.75%
|
0.75%
|
Category 6
:
|
Less than Baa3/BBB-
|
2.50%
|
1.50%
|
(b)
|
such limit as the Consignor and the Company may agree upon from time to time as evidenced by an amendment in substantially the form of
Exhibit B
attached hereto and made a part hereof or in such other form as the Consignor shall require, with a copy to the Bank in any case; or
|
(c)
|
such other limit as the Consignor may approve in its sole discretion.
”
|
NY1154412.5
000000-33333 |
|
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NY1154412.5
000000-33333 |
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NY1154412.5
000000-33333 |
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NY1154412.5
000000-33333 |
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000000-33333 |
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000000-33333 |
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000000-33333 |
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000000-33333 |
9
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000000-33333 |
10
|
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NY1154412.5
000000-33333 |
11
|
|
NY1154412.5
000000-33333 |
12
|
|
(a)
|
sales of inventory and other assets in the ordinary course of the Company's business; and
|
(b)
|
the consignment of the Consigned Precious Metal and Other Consignors' Precious Metal to the Dentsply Subsidiaries pursuant to the Subsidiary Consignment Agreement, provided that the terms of the Subsidiary
|
NY1154412.5
000000-33333 |
13
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000000-33333 |
14
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000000-33333 |
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000000-33333 |
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NY1154412
|
|
SIGNATURE PAGE TO
CONSIGNMENT AGREEMENT
|
NY1154412.5
000000-33333 |
|
|
Name
|
Title
|
_____________________________
|
_____________________________
|
_____________________________
|
_____________________________
|
_____________________________
|
_____________________________
|
NY1154412.5
000000-33333 |
1
|
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NY1154412.5
000000-33333 |
1
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NY1154412.5
000000-33333 |
2
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|
NY1154412.5
000000-33333 |
1
|
|
NY1154412.5
000000-33333 |
1
|
|
NY1154412.5
000000-33333 |
2
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|
NY1154412.5
000000-33333 |
3
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NY1154412.5
000000-33333 |
4
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NY1154412.5
000000-33333 |
5
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000000-33333 |
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000000-33333 |
7
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000000-33333 |
8
|
|
1.
|
Advanced Technology Research SRL (Italy)
|
2.
|
AMD Lasers LLC (Indiana)
|
3.
|
Biotech Dental (HK) Limited (Hong Kong)
|
4.
|
Ceramco Manufacturing B.V. (Netherlands)
|
5.
|
DeguDent GmbH (Germany)
|
6.
|
Dental Depot Lomberg BV (Netherlands)
|
7.
|
Dentsply (NZ) Limited (New Zealand)
|
8.
|
Dentsply (Philippines) Inc. (Philippines)
|
9.
|
Dentsply (Singapore) Pte. Ltd. (Singapore)
|
10.
|
Dentsply (Thailand) Ltd. (Thailand)
|
11.
|
Dentsply Acquisition S.a.r.l. (Luxembourg)
|
12.
|
Dentsply Acquisition US LLC (Luxembourg)
|
13.
|
Dentsply Argentina S.A.C.e.I. (Argentina)
|
14.
|
Dentsply Asset Management GmbH & Co KG (Germany)
|
15.
|
Dentsply Australia Pty. Ltd. (Australia)
|
16.
|
Dentsply Benelux Sarl (Luxembourg)
|
17.
|
Dentsply Canada Ltd. (Canada)
|
18.
|
Dentsply CE S.a.r.l. (Luxembourg)
|
19.
|
Dentsply CH S.a.r.l. (Luxembourg)
|
20.
|
Dentsply Dental (Tianjin) Co. Ltd. (China)
|
21.
|
Dentsply Dental S.a.r.l. (Luxembourg)
|
22.
|
Dentsply DeTrey GmbH (Germany)
|
23.
|
Dentsply DeTrey Sarl (Switzerland)
|
24.
|
Dentsply Deutschland GmbH (Germany)
|
25.
|
Dentsply Espana SL (Spain)
|
26.
|
Dentsply EU Holding S.a.r.L (Luxembourg)
|
27.
|
Dentsply Europe S.A.R.L. (Luxembourg)
|
28.
|
DENTSPLY Finance Co. (Delaware)
|
29.
|
Dentsply France S.A.S. (France)
|
30.
|
Dentsply GAC Europe SAS (France)
|
31.
|
Dentsply Germany Holdings GmbH (Germany)
|
32.
|
Dentsply Germany Investments GmbH (Germany)
|
33.
|
Dentsply Holdings S.a.r.l. (Luxembourg)
|
34.
|
Dentsply IH AB (Sweden)
|
35.
|
Dentsply IH AS (Denmark)
|
36.
|
Dentsply IH AS (Norway)
|
37.
|
Dentsply IH Benelux B.V. (Netherlands)
|
38.
|
Dentsply IH France SAS (France)
|
39.
|
Dentsply IH GmbH Austria (Austria)
|
40.
|
Dentsply IH GmbH (Germany)
|
41.
|
Dentsply IH Holding GmbH (Germany)
|
42.
|
Dentsply IH Inc (Delaware)
|
43.
|
Dentsply IH K.K. (Japan)
|
44.
|
Dentsply IH Ltd (UK)
|
45.
|
Dentsply IH Oy (Finland)
|
46.
|
Dentsply IH Pty/ Ltd (Australia)
|
47.
|
Dentsply IH Russia (Russia)
|
48.
|
Dentsply IH S.A. (Spain)
|
49.
|
Dentsply IH S.A. (Switzerland)
|
50.
|
Dentsply IH SP.z.o.o (Poland)
|
51.
|
Dentsply IH SpA (Italy)
|
52.
|
Dentsply IH Sverige AB (Sweden)
|
53.
|
Dentsply Implants Manufacturing GmbH(Germany)
|
54.
|
Dentsply Implants Taiwan Co, Ltd. (Taiwan)
|
55.
|
Dentsply Implants Turkey A.S. (Turkey)
|
56.
|
Dentsply India Pvt. Ltd. (India)
|
57.
|
Dentsply Industria e Comercio Ltda. (Brazil)
|
58.
|
Dentsply Israel Ltd. (Israel)
|
59.
|
Dentsply Italia SrL (Italy)
|
60.
|
Dentsply Korea Limited (Korea)
|
61.
|
Dentsply Limited (Cayman Islands)
|
62.
|
Dentsply LLC (Delaware)
|
63.
|
Dentsply Luxembourg Sarl (Luxembourg)
|
64.
|
Dentsply Mexico S.A. de C.V. (Mexico)
|
65.
|
DENTSPLY North America LLC (Delaware)
|
66.
|
DENTSPLY Prosthetics U.S. LLC (Delaware)
|
67.
|
Dentaply Prosthetics Austria GmbH (Austria)
|
68.
|
Dentsply Russia Limited (U.K.)
|
69.
|
Dentsply Russia LLC (Russia)
|
70.
|
Dentsply Sarl (Luxembourg)
|
71.
|
Dentsply SE S.a.r.l. (Luxembourg)
|
72.
|
Dentsply Services (Switzerland) S.a.r.L. (Switzerland)
|
73.
|
Dentsply South Africa (Pty) Limited (South Africa)
|
74.
|
Dentsply Sweden AB (Sweden)
|
75.
|
Dentsply Switzerland S.a.r.l. (Switzerland)
|
76.
|
Dentsply Tianjin International Trading Co. Ltd. (China)
|
77.
|
DeguDent Industria e Comercio Ltda. (Brazil)
|
78.
|
DENTSPLY-Sankin K.K. (Japan)
|
79.
|
DLA Pharmaceutical Ltda. (Brazil)
|
80.
|
DSHealthcare Inc. (Delaware)
|
81.
|
Ducera Dental Verwaltungs GmbH (Germany)
|
82.
|
Elephant Dental B.V. (Netherlands)
|
83.
|
EndoAction Inc. (Delaware)
|
84.
|
ES Healthcare (Belgium)
|
85.
|
ES Holding NV Co.(Belgium)
|
86.
|
ES Tooling NV (Belgium)
|
87.
|
GAC (International) Pty Ltd (Australia)
|
88.
|
GAC Deutschland GmbH (Germany)
|
89.
|
GAC International Asia Pte. Ltd. (Singapore)
|
90.
|
GAC International LLC (Delaware)
|
91.
|
GAC Norge AS (Norway)
|
92.
|
GAC, SA (Switzerland)
|
93.
|
Maillefer Instruments Consulting S.a.r.l. (Switzerland)
|
94.
|
Maillefer Instruments Holding S.a.r.l. (Switzerland)
|
95.
|
Maillefer Instruments Manufacturing S.a.r.l. (Switzerland)
|
96.
|
Maillefer Instruments Trading S.a.r.l. (Switzerland)
|
97.
|
Materialise Dental France SAS (France)
|
98.
|
Materialise Dental GmbH (Germany)
|
99.
|
Materialise Dental Inc. (Maryland)
|
100.
|
Materialise Dental Japan Inc. (70%)(Japan)
|
101.
|
Materialise Dental NV (Belgium)
|
102.
|
Materialise Dental Spain S.L.U.(Spain)
|
103.
|
Materialise Ukraine LLC (Ukraine)
|
104.
|
Megalopolis Dental S.A. de C.V. (Mexico)
|
105.
|
Ortho Concept S.a.r.l (France)
|
106.
|
Orthodental International, Inc. (California)
|
107.
|
Orthodental S.A. de C.V. (Mexico)
|
108.
|
OrthoSpain S.L. (Spain)
|
109.
|
Osteointegration Materials LLC (Delaware)
|
110.
|
Planer Dentaprise GmbH (Austria)
|
111.
|
Prident (Shanghai) Dental Medical Devices Co., Ltd. (China)
|
112.
|
Prident International, Inc. (California)
|
113.
|
PT Dentsply Indonesia (Indonesia)
|
114.
|
Qi An Hua Rui Limited (Hong Kong)
|
115.
|
Qi An Hua Rui (Bejing) Technology Limited (China)
|
116.
|
Raintree Essix Inc. (Delaware)
|
117.
|
Ransom & Randolph Company (Delaware)
|
118.
|
Sankin Laboratories K.K. (Japan)
|
119.
|
TDP NT LLC (Delaware)
|
120.
|
Tulsa Dental Products LLC (Delaware)
|
121.
|
Tulsa Luxembourg LLC (Luxembourg)
|
122.
|
Tulsa Luxembourg S.a.r..l (Luxembourg)
|
123.
|
Tuzodent S.A. de C.V. (Mexico)
|
124.
|
VDW GmbH (Germany)
|
125.
|
Zhermack GmbH (Germany)
|
126.
|
Zhermack SpA (Italy)
|
127.
|
Zhermack, Inc. (US - Nevada)
|
128.
|
Zhermapol SP Zoo (Poland)
|
1.
|
I have reviewed this Form 10-K of DENTSPLY International 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 officers 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 controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles:
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter( the registrant fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers 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 the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/
|
Bret W. Wise
|
|
Bret W. Wise
|
|
Chairman of the Board and Chief Executive Officer
|
1.
|
I have reviewed this Form 10-K of DENTSPLY International 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 officers 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 controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles:
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter( the registrant fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers 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 the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/
|
Christopher T. Clark
|
|
Christopher T. Clark
|
|
President and Chief Financial Officer
|
/s/
|
Bret W. Wise
|
|
Bret W. Wise
|
|
Chairman of the Board and Chief Executive Officer
|
/s/
|
Christopher T. Clark
|
|
Christopher T. Clark
|
|
President and Chief Financial Officer
|