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Segment Data
 3 Months Ended
Mar. 29, 2025
Segment Data [Abstract]  
Segment Data
Note 5
 
–
Segment Data
During the fourth quarter of our fiscal year ended December 28, 2024,
 
we revised our reportable segments to align
with how the Chairman and Chief Executive Officer manages the business, assesses
 
performance and allocates
resources.
 
Our revised reportable segments now consist of: (i) Global Distribution
 
and Value
 
-Added Services; (ii)
Global Specialty Products; and (iii) Global Technology.
 
These segments offer different products and services to
the same customer base.
 
All prior comparative segment information has been recast
 
to reflect our new segment
structure.
 
We aggregate operating segments into these reportable segments based on economic similarities, the nature of their
products, customer base, and methods of distribution.
 
Global Distribution and Value-Added Services includes distribution to the global dental and medical markets of
national brand and corporate brand merchandise, as well as equipment and related
 
technical services.
 
This segment
also includes value-added services such as financial services, continuing
 
education services, consulting and other
services.
 
This segment also markets and sells under our own corporate brand,
 
a portfolio of cost-effective, high-
quality consumable merchandise.
 
Global Specialty Products includes manufacturing, marketing
 
and sales of dental
implant and biomaterial products; and endodontic, orthodontic and orthopedic
 
products and other health care-
related products and services.
 
Global Technology includes development and distribution of practice management
software, e-services, and other products, which are distributed to health
 
care providers.
Our organizational structure also includes Corporate, which consists primarily of
 
income and expenses associated
with support functions and projects.
Our chief operating decision maker (“CODM”) is our Chairman
 
and Chief Executive Officer.
 
Our CODM uses
adjusted operating income as the profitability metric for purposes of making
 
decisions about allocation of resources
to each segment and assessing performance of each segment.
 
Adjusted operating income provides a measure of our
underlying segment results that is in line with our approach to risk and performance
 
management.
 
We define
adjusted operating income as operating income adjusted to exclude
 
(a) direct cybersecurity costs and related
insurance recovery proceeds, (b) amortization of acquisition intangibles,
 
(c) organizational restructuring expenses,
(d) impairment of intangible assets, (e) changes in fair value of contingent consideration,
 
and (f) costs associated
with shareholder advisory matters.
 
These adjustments are either: (i) non-cash or non-recurring in
 
nature; (ii) not
allocable or controlled by the segment; or (iii) not tied to the operational
 
performance of the segment.
 
Assets by
segment are not a measure used to assess the performance of the Company
 
by CODM and thus are not reported in
our disclosures.
Segment adjusted operating income is presented in the following
 
table to reconcile to operating income as
presented on the condensed consolidated statement of operations.
 
The reconciliation from operating income to
income before taxes and equity in earnings of affiliates is presented on our condensed consolidated
 
statements of
income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
March 29,
March 30,
2025
2024
Gross Sales:
Global Distribution and Value
 
-Added Services
(1)
$
2,676
$
2,693
Global Specialty Products
(2)
367
360
Global Technology
(3)
162
157
Total Gross Sales
3,205
3,210
Less: Eliminations:
Global Distribution and Value
 
-Added Services
 
(4)
(8)
Global Specialty Products
(33)
(30)
Total eliminations
(37)
(38)
Net Sales
Global Distribution and Value
 
-Added Services
 
2,672
2,685
Global Specialty Products
 
334
330
Global Technology
162
157
Total Net Sales
$
3,168
$
3,172
Three Months Ended
March 29,
March 30,
2025
2024
Operating Income
Global Distribution and Value
 
-Added Services
$
167
$
171
Global Specialty Products
56
43
Global Technology
42
34
Total Segment Operating Income
265
248
Corporate
(35)
(22)
Adjustments
(4)
(55)
(76)
Total Operating Income
$
175
$
150
Depreciation and Amortization
Global Distribution and Value
 
-Added Services
$
35
$
36
Global Specialty Products
27
25
Global Technology
11
12
Total Depreciation and Amortization
$
73
$
73
Global Distribution and Value
 
-Added Services: Includes distribution of infection-control products, handpieces, preventatives,
impression materials, composites, anesthetics, teeth, gypsum, acrylics, articulators, abrasives, personal protective equipment
(“PPE”) products,
 
branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, dental chairs, delivery units
and lights, digital dental laboratories, X-ray supplies and equipment, high-tech and digital restoration equipment, equipment repair
services, financial services on a non-recourse basis, continuing education services for practitioners, consulting and other services.
 
This segment also markets and sells under our own corporate brand, a portfolio of cost-effective, high-quality consumable
merchandise.
(2)
Global Specialty Products: Includes manufacturing, marketing and sales of dental implant and biomaterial products; and
endodontic, orthodontic and orthopedic products and other health care-related products and services.
(3)
Global Technology: Includes development and distribution of practice management software, e-services, and other products, which
are distributed to health care providers.
Adjustments represent items excluded from segment operating income to enable comparison of financial results between periods.
 
The following table presents a breakdown of such adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
March 29,
March 30,
2025
2024
Adjustments:
Restructuring costs
$
(25)
$
(10)
Acquisition intangible amortization
(43)
(46)
Cyber incident-third-party advisory expenses, net of insurance
20
(5)
Changes in contingent consideration
2
(15)
Impairment of intangible assets
(1)
-
Costs associated with shareholder advisory matters
(8)
-
Total adjustments
$
(55)
$
(76)