REVENUE

3 Months Ended

Mar. 31, 2022

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 months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended
(in millions)	2022		2021
Equipment & Instruments	$	166	$	171
CAD/CAM	106		129
Orthodontics	68		68
Implants	155		153
Healthcare	70		74
Technology & Equipment segment net sales	$	565	$	595
Endodontic & Restorative	$	293	$	312
Other Consumables	111		119
Consumables segment sales	$	404	$	431
Total net sales	$	969	$	1,026

Net sales disaggregated by geographic region for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended
(in millions)	2022		2021
United States	$	308	$	347
Europe	411		417
Rest of World	250		262
Total net sales	$	969	$	1,026

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 $64 million and $68 million of deferred revenue recorded in Accrued liabilities in the Consolidated Balance Sheets at March 31, 2022 and December 31, 2021, respectively. Prior year deferred revenue of approximately $32 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 $11 million at March 31, 2022 and $13 million at December 31, 2021. For the three months ended March 31, 2022 and 2021, changes to the provision for doubtful accounts including write-offs of accounts receivable that were previously reserved were insignificant. Changes to this provision are included in Selling, general, and administrative expenses in the Consolidated Statements of Operations.