REVENUE

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Revenues are derived primarily from the sale of dental equipment and dental and healthcare consumable products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services.

Net sales disaggregated by product category for the three and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended				Nine Months Ended
(in millions)	2021		2020		2021		2020
Equipment & Instruments	$	176	$	152	$	523	$	373
CAD/CAM	147		97		403		296
Orthodontics	63		52		212		119
Implants	150		126		461		329
Healthcare	76		70		225		210
Technology & Equipment segment net sales	$	612	$	497	$	1,824	$	1,327
Endodontic & Restorative	$	313	$	268	$	953	$	642
Other Consumables	115		118		351		294
Consumables segment net sales	$	428	$	386	$	1,304	$	936
Total net sales	$	1,040	$	883	$	3,128	$	2,263

Net sales disaggregated by geographic region for the three and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended				Nine Months Ended
(in millions)	2021		2020		2021		2020
United States	$	384	$	312	$	1,094	$	758
Europe	393		346		1,239		934
Rest of World	263		225		795		571
Total net sales	$	1,040	$	883	$	3,128	$	2,263

Contract Assets and Liabilities

The Company normally does not have contract assets in the course of its business. Contract liabilities, which represent billings in excess of revenue recognized, are primarily related to advanced billings for customer aligner treatment where the performance obligation has not yet been fulfilled. The Company had $59 million and $53 million of deferred revenue recorded in Accrued liabilities in the Consolidated Balance Sheets at September 30, 2021 and December 31, 2020, respectively. Prior year deferred revenue of approximately $35 million was recognized in the current year. The Company expects to recognize significantly all of the remaining deferred revenue within the next twelve months.

Allowance for Doubtful Accounts

Accounts and notes receivables-trade, net are stated net of allowances for doubtful accounts and trade discounts, which were $14 million at September 30, 2021 and $18 million at December 31, 2020. For the three months and nine months ended September 30, 2021, changes to the provision for doubtful accounts including write-offs of accounts receivable that were previously reserved were insignificant. For the three months ended September 30, 2020 changes to the provision were insignificant. For the nine months ended September 30, 2020, the Company wrote-off $10 million of accounts receivable that were previously reserved and increased the provision for doubtful accounts by $2 million. Changes to this provision are included in Selling, general, and administrative expenses in the Consolidated Statements of Operations.