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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2019
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has numerous operating businesses covering a wide range of dental consumable products, dental technology, and dental equipment products primarily serving the professional dental market, and certain healthcare products. Professional dental products represented approximately 92% of net sales for the three and nine months ended September 30, 2019 and September 30, 2018, respectively. The operating businesses are combined into two operating groups, which generally have overlapping geographical presence, customer bases, distribution channels, and regulatory oversight. These operating groups are considered the Company’s reportable segments as the Company’s chief operating decision-maker regularly reviews financial results at the operating group level and uses this information to manage the Company’s operations. The accounting policies of the segments are consistent with those described in the Company’s most recently filed Form 10-K, in the summary of significant accounting policies. The Company evaluates performance of the segments based on the groups’ net third party sales, excluding precious metal content, and segment adjusted operating income. Net third party sales excluding precious metal content is considered a measure not calculated in accordance with US GAAP, and is therefore considered a non-US GAAP measure. Management believes that the presentation of net sales, excluding precious metal content, provides useful information to investors because a portion of Dentsply Sirona’s net sales is comprised of sales of precious metals generated through sales of the Company’s precious metal dental alloy products, which are used by third parties to construct crown and bridge materials. Due to the fluctuations of precious metal prices and because the cost of the precious metal content of the Company’s sales is largely passed through to customers and has minimal effect on earnings, Dentsply Sirona reports net sales both with and without precious metal content to show the Company’s performance independent of precious metal price volatility and to enhance comparability of performance between periods. The Company uses its cost of precious metal purchased as a proxy for the precious metal content of sales, as the precious metal content of sales is not separately tracked and invoiced to customers. The Company believes that it is reasonable to use the cost of precious metal content purchased in this manner since precious metal dental alloy sale prices are typically adjusted when the prices of underlying precious metals change. The Company’s exclusion of precious metal content in the measurement of net third party sales enhances comparability of performance between periods as it excludes the fluctuating market prices of the precious metal content. The Company also evaluates segment performance based on each segment’s adjusted operating income before provision for income taxes and interest. Segment adjusted operating income is defined as operating income before income taxes and before certain corporate headquarter unallocated costs, restructuring and other costs, interest expense, interest income, other expense (income), net, amortization of intangible assets, and depreciation resulting from the fair value step-up of property, plant and equipment from acquisitions. The Company’s segment adjusted operating income is considered a non-US GAAP measure. A description of the products and services provided within each of the Company’s two operating segments is provided below. During the three and nine months ended September 30, 2019, certain reclassifications have been made to prior year’s data in order to conform to current year presentation. Specifically, during the three months ended March 31, 2019; the Company moved the dental laboratory business into the Consumables segment as the products sold from this business are typically made on a recurring basis and have similar sales and operating characteristics as the other businesses in this segment. The Company moved the orthodontics business into the Technologies & Equipment segment to take advantage of the synergies related to digital planning and treatment within this segment. The Company also moved the instruments business into the Technologies & Equipment segment in order to take advantage of the synergies that stem from pairing equipment with instruments, which are often sold in conjunction with each other. The segment information reflects the revised structure for all periods shown. Technologies & Equipment This segment is responsible for the worldwide design, manufacture, sales, and distribution of the Company’s Dental Technology and Equipment Products and Healthcare Consumable Products. These products include dental implants, CAD/CAM systems, orthodontic dental products, imaging systems, treatment centers, instruments, as well as consumable medical device products. Consumables This segment is responsible for the worldwide design, manufacture, sale, and distribution 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 were as follows: Third Party Net Sales
|  | Three Months Ended |  |  |  | Nine Months Ended |  |
(in millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Technologies & Equipment |  | $ | 534.5 |  |  | $ | 508.5 |  |  | $ | 1,613.7 |  |  | $ | 1,571.8 |
Consumables |  | 427.6 |  |  | 419.9 |  |  | 1,304.0 |  |  | 1,354.8 |
Total net sales |  | $ | 962.1 |  |  | $ | 928.4 |  |  | $ | 2,917.7 |  |  | $ | 2,926.6 |
Third Party Net Sales, Excluding Precious Metal Content
|  | Three Months Ended |  |  |  | Nine Months Ended |  |
(in millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Technologies & Equipment |  | $ | 534.5 |  |  | $ | 508.5 |  |  | $ | 1,613.7 |  |  | $ | 1,571.8 |
Consumables |  | 416.1 |  |  | 412.1 |  |  | 1,272.4 |  |  | 1,327.3 |
Total net sales, excluding precious metal content |  | 950.6 |  |  | 920.6 |  |  | 2,886.1 |  |  | 2,899.1 |
Precious metal content of sales |  | 11.5 |  |  | 7.8 |  |  | 31.6 |  |  | 27.5 |
Total net sales, including precious metal content |  | $ | 962.1 |  |  | $ | 928.4 |  |  | $ | 2,917.7 |  |  | $ | 2,926.6 |
Segment Adjusted Operating Income
|  | Three Months Ended |  |  |  | Nine Months Ended |  |
(in millions) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Technologies & Equipment |  | $ | 104.7 |  |  | $ | 48.1 |  |  | $ | 272.5 |  |  | $ | 185.4 |
Consumables |  | 113.8 |  |  | 102.3 |  |  | 341.3 |  |  | 360.4 |
Segment adjusted operating income before income taxes and interest |  | 218.5 |  |  | 150.4 |  |  | 613.8 |  |  | 545.8 |
Reconciling items expense (income): |  |  |  |  |  |  |  |
All Other (a) |  | 54.7 |  |  | 41.4 |  |  | 173.3 |  |  | 133.6 |
Goodwill impairment |  | — |  |  | — |  |  | — |  |  | 1,085.8 |
Restructuring and other costs |  | 5.2 |  |  | 12.1 |  |  | 68.1 |  |  | 211.2 |
Interest expense |  | 6.6 |  |  | 9.7 |  |  | 23.0 |  |  | 27.9 |
Interest income |  | (0.7) |  |  | (0.6) |  |  | (2.0) |  |  | (1.6) |
Other expense (income), net |  | (2.9) |  |  | 4.7 |  |  | (4.6) |  |  | (30.4) |
Amortization of intangible assets |  | 47.4 |  |  | 49.6 |  |  | 142.9 |  |  | 149.7 |
Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations |  | 1.7 |  |  | 1.8 |  |  | 5.2 |  |  | 5.4 |
Income (loss) before income taxes |  | $ | 106.5 |  |  | $ | 31.7 |  |  | $ | 207.9 |  |  | $ | (1,035.8) |
(a) Includes the results of unassigned Corporate headquarter costs and inter-segment eliminations.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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