Payments on terminated derivative instruments

  


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| DENTSPLY SIRONA INC. AND SUBSIDIARIES |   |  |   |  |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |   |  |   |  |   |
| (in millions) | Year Ended December 31, |
|   | 2021 |  | 2020 |  | 2019 |
| Cash flows from operating activities: |   |  |   |  |   |
|  |  |  |  |  |  |
| Net income (loss) | $ | 421  |  |  | $ | (83) |  |  | $ | 263  |  |
|  |  |  |  |  |  |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |   |  |   |  |   |
| Depreciation | 124  |  |  | 142  |  |  | 133  |  |
| Amortization of intangible assets | 222  |  |  | 192  |  |  | 190  |  |
|  |  |  |  |  |  |
| Fixed asset impairment | —  |  |  | 3  |  |  | 33  |  |
| Goodwill impairment | —  |  |  | 157  |  |  | —  |  |
| Indefinite-lived intangible asset impairment | —  |  |  | 39  |  |  | 9  |  |
|  |  |  |  |  |  |
| Deferred income taxes | (20) |  |  | (64) |  |  | (37) |  |
| Stock based compensation expense | 48  |  |  | 47  |  |  | 66  |  |
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| Other non-cash (income) expense | 34  |  |  | 2  |  |  | (6) |  |
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| (Gain) loss on sale on non-strategic businesses and product lines | (14) |  |  | 1  |  |  | 2  |  |
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| Changes in operating assets and liabilities, net of acquisitions: |   |  |   |  |   |
| Accounts and notes receivable-trade, net | (109) |  |  | 126  |  |  | (91) |  |
| Inventories, net | (63) |  |  | 124  |  |  | 14  |  |
| Prepaid expenses and other current assets, net | (35) |  |  | 42  |  |  | 13  |  |
| Other noncurrent assets | (10) |  |  | 1  |  |  | (9) |  |
| Accounts payable | (46) |  |  | (23) |  |  | 26  |  |
| Accrued liabilities | 78  |  |  | (17) |  |  | 45  |  |
| Income taxes | 17  |  |  | (39) |  |  | (16) |  |
| Other noncurrent liabilities | 10  |  |  | (15) |  |  | (2) |  |
|  |  |  |  |  |  |
| Net cash provided by operating activities | 657  |  |  | 635  |  |  | 633  |  |
|  |  |  |  |  |  |
| Cash flows from investing activities: |   |  |   |  |   |
|  |  |  |  |  |  |
| Cash paid for acquisitions of businesses and equity investments, net of cash acquired | (248) |  |  | (1,078) |  |  | (3) |  |
|  |  |  |  |  |  |
| Cash received on sale of non-strategic businesses or product lines | 28  |  |  | 1  |  |  | 11  |  |
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| Capital expenditures | (142) |  |  | (87) |  |  | (123) |  |
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| Cash received on derivative contracts | 2  |  |  | 58  |  |  | 40  |  |
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| Other investing activities, net | 2  |  |  | —  |  |  | 6  |  |
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| Net cash used in investing activities | (358) |  |  | (1,106) |  |  | (69) |  |
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| Cash flows from financing activities: |   |  |   |  |   |
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| Proceeds from long-term borrowings, net of deferred financing costs | 16  |  |  | 1,448  |  |  | 120  |  |
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| Repayments on long-term borrowings | (297) |  |  | (701) |  |  | (251) |  |
| Net borrowings (repayments) on short-term borrowings | 179  |  |  | 2  |  |  | (69) |  |
| Payments on terminated derivative instruments | —  |  |  | (30) |  |  | —  |  |
| Proceeds from exercised stock options | 51  |  |  | 11  |  |  | 109  |  |
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| Cash paid for treasury stock | (200) |  |  | (140) |  |  | (260) |  |
| Cash dividends paid | (92) |  |  | (88) |  |  | (81) |  |
| Other financing activities, net | (36) |  |  | (12) |  |  | (34) |  |
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| Net cash (used in) provided by financing activities | (379) |  |  | 490  |  |  | (466) |  |
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| Effect of exchange rate changes on cash and cash equivalents | (19) |  |  | 14  |  |  | (3) |  |
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| Net (decrease) increase in cash and cash equivalents | (99) |  |  | 33  |  |  | 95  |  |
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| Cash and cash equivalents at beginning of period | 438  |  |  | 405  |  |  | 310  |  |
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| Cash and cash equivalents at end of period | $ | 339  |  |  | $ | 438  |  |  | $ | 405  |  |
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| Supplemental disclosures of cash flow information: |   |  |   |  |   |
| Interest paid, net of amounts capitalized | $ | 64  |  |  | $ | 45  |  |  | $ | 30  |  |
| Income taxes paid, net of refunds | 148  |  |  | 82  |  |  | 112  |  |
| Non-cash investing activities: |  |  |  |  |  |
| Property, plant and equipment in accounts payable at end of period | $ | 33  |  |  | $ | 14  |  |  | $ | 14  |  |
| Exchange of inventory for naming rights | 2  |  |  | 4  |  |  | 3  |  |

The accompanying notes are an integral part of these consolidated financial statements.59
