Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company operates and reports its results in two separate business segments, the Specialty Products & Technologies and Equipment & Consumables segments. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. Operating profit represents total revenues less operating expenses, excluding nonoperating income (expense), interest expense and income taxes. Operating profit amounts in the Other segment consist of unallocated corporate costs and other costs not considered part of management’s evaluation of reportable segment operating performance. The identifiable assets by segment are those used in each segment’s operations. Inter-segment amounts are not significant and are eliminated to arrive at consolidated totals.

The Company’s Specialty Products & Technologies products include implants, regenerative products, prosthetics, orthodontic brackets, aligners and lab products. The Company’s Equipment & Consumables products include traditional consumables such as bonding agents and cements, impression materials, infection prevention products and restorative products, while the Company’s equipment products include digital imaging systems, software and other visualization and magnification systems.

On December 31, 2021, the Company sold substantially all of its KaVo Treatment Unit and Instrument Business, which was part of the Company’s Equipment & Consumables segment. As a result, the financial results of the KaVo Treatment Unit and Instrument Business for the three months ended April 1, 2022, were reported as discontinued operations and all segment information and descriptions exclude the KaVo Treatment Unit and Instrument Business. As of December 31, 2022, all activities related to the sale of the KaVo Treatment Unit and Instrument Business were completed and therefore there are no discontinued operations reported for the three months ended March 31, 2023. Refer to Note 3 for more information on the Company’s discontinued operations.

Segment related information is shown below ($ in millions):

	Three Months Ended
	March 31, 2023		April 1, 2022
Sales:
Specialty Products & Technologies	$	410.0	$	397.1
Equipment & Consumables	217.2		234.3
Total	$	627.2	$	631.4
Operating profit and reconciliation to income before taxes from continuing operations:
Specialty Products & Technologies	$	71.1	$	70.3
Equipment & Consumables	32.5		45.5
Other	(31.5)		(24.3)
Operating profit	72.1		91.5
Nonoperating income (expense):
Other income	0.3		0.3
Interest expense, net	(16.7)		(5.9)
Income before taxes from continuing operations	$	55.7	$	85.9
Identifiable assets:	March 31, 2023		December 31, 2022
Specialty Products & Technologies	$	3,486.1	$	3,475.7
Equipment & Consumables	2,458.9		2,455.3
Other	630.0		656.0
Total	$	6,575.0	$	6,587.0