SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2023

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 (including certain inter-segment eliminations which are generally based on estimated external selling prices and are eliminated during consolidation), goodwill and intangible asset impairments, restructuring 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 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 months ended March 31, 2023 and 2022 was as follows:

Net Sales

	Three Months Ended
(in millions)	2023		2022
Technologies & Equipment	$	548	$	565
Consumables	430		404
Total net sales	$	978	$	969

Segment Adjusted Operating Income

	Three Months Ended
(in millions)	2023		2022
Technologies & Equipment	$	67	$	86
Consumables	131		135
Segment adjusted operating income	198		221
Reconciling items expense (income):
All other (a)	87		65
Restructuring and other costs	59		3
Interest expense, net	19		12
Other expense (income), net	7		(2)
Amortization of intangible assets	53		55
Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations	1		1
(Loss) income before income taxes	$	(28)	$	87

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