SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2022

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, 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 clear 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, 2022 and 2021 was as follows:

Net Sales

	Three Months Ended
(in millions)	2022		2021
Technologies & Equipment	$	565	$	595
Consumables	404		431
Total net sales	$	969	$	1,026

Segment Adjusted Operating Income

	Three Months Ended
(in millions)	2022		2021
Technologies & Equipment	$	86	$	124
Consumables	135		149
Segment adjusted operating income	221		273
Reconciling items expense (income):
All other (a)	65		63
Restructuring and other costs	3		3
Interest expense, net	12		14
Other expense (income), net	(2)		(9)
Amortization of intangible assets	55		55
Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations	1		2
Income before income taxes	$	87	$	145

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