SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2021

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 also comprise 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, 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 Consumable Products. These products include dental implants, CAD/CAM systems, orthodontic clear aligner products, imaging systems, treatment centers, instruments, as well as consumable medical device products.

Consumables

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

The Company’s segment information for the three and nine months ended September 30, 2021 and 2020 was as follows:

Net Sales

	Three Months Ended				Nine Months Ended
(in millions)	2021		2020		2021		2020
Technologies & Equipment	$	612	$	497	$	1,824	$	1,327
Consumables	428		386		1,304		936
Total net sales	$	1,040	$	883	$	3,128	$	2,263

Segment Adjusted Operating Income

	Three Months Ended				Nine Months Ended
(in millions)	2021		2020		2021		2020
Technologies & Equipment (a)	$	134	$	122	$	391	$	231
Consumables (a)	123		114		426		166
Segment adjusted operating income (loss)	257		236		817		397
Reconciling items expense (income):
All other (b)	67		95		199		174
Goodwill impairment	—		—		—		157
Restructuring and other costs	3		18		11		62
Interest expense, net	14		14		43		31
Other expense (income), net	5		1		4		4
Amortization of intangible assets	56		49		167		143
Depreciation and other adjustments resulting from the fair value step-up of property, plant, and equipment from business combinations	(1)		2		4		5
Income (loss) before income taxes	$	113	$	57	$	389	$	(179)

(a) Certain charges related to discontinuance of product lines which were previously reported in adjusted operating income for the reportable segments, $33 million and $34 million for the three and nine months ended September 30, 2020, respectively, have been reclassified to the “All other” category to conform to current year presentation and the Company’s internal reporting in the Chief Operating Decision Maker package. These amounts are not material to the measure of segment results for the years presented.

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