SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s two operating segments are organized primarily by product and generally have overlapping geographical presence, customer bases, distribution channels, and regulatory oversight. These operating segments are also the Company’s reportable segments in accordance with how the Company’s chief operating decision-maker regularly reviews financial results and uses this information to evaluate the Company’s performance and allocate resources.

The Company evaluates performance of the segments based on net sales and adjusted operating income. Segment adjusted operating income is defined as operating income before income taxes and before certain corporate headquarters unallocated costs, goodwill impairments, intangible asset impairments and other costs, interest expense, net, other expense (income), net, amortization of intangible assets and depreciation resulting from the fair value step-up of property, plant, and equipment from acquisitions.

A description of the products and services provided within each of the Company’s two reportable segments is provided below.

Technologies & Equipment

This segment is responsible for the design, manufacture, and sales of the Company’s dental technology and equipment products and healthcare products. These products include dental implants, CAD/CAM systems, orthodontic clear aligners, imaging systems, treatment centers, instruments, as well as medical devices.

Consumables

This segment is responsible for the design, manufacture, and sales of the Company’s consumable products which include various preventive, restorative, endodontic, and dental laboratory products.

The Company’s segment information for the three and nine months ended September 30, 2022 and 2021 was as follows:

Net Sales

	Three Months Ended				Nine Months Ended
(in millions)	2022		2021		2022		2021
Technologies & Equipment	$	556	$	612	$	1,716	$	1,824
Consumables	391		428		1,223		1,304
Total net sales	$	947	$	1,040	$	2,939	$	3,128

Segment Adjusted Operating Income

	Three Months Ended				Nine Months Ended
(in millions)	2022		2021		2022		2021
Technologies & Equipment	$	73	$	134	$	278	$	391
Consumables	121		123		398		426
Segment adjusted operating income	194		257		676		817
Reconciling items expense (income):
All other (a)	77		67		223		199
Goodwill impairment	1,187		—		1,187		—
Intangible asset impairment and other costs	97		3		107		11
Interest expense, net	14		14		41		43
Other expense (income), net	9		5		20		4
Amortization of intangible assets	51		56		159		167
Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations	—		(1)		2		4
(Loss) income before income taxes	$	(1,241)	$	113	$	(1,063)	$	389

(a) Includes the results of unassigned Corporate headquarters costs and inter-segment eliminations.