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SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION 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 Company evaluates performance of the segments based on the groups’ net third party sales, excluding precious metal content, and segment adjusted operating income. The Company defines net third party sales excluding precious metal content as the Company’s net sales excluding the precious metal cost within the products sold, which 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. Technologies & Equipment This segment is responsible for the worldwide design, manufacture, sales and distribution of the Company’s Dental Technology & Equipment Products and Healthcare Consumable Products. These products includes dental implants, CAD/CAM systems, orthodontic clear aligners, 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 laboratory dental products. Reclassification of Prior Years Amounts For the year ended December 31, 2019, certain reclassifications have been made to data for the years ended December 31, 2018 and 2017 in order to conform to the 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. The Company’s segment information for the years ended December 31 were as follows:
Net Sales |  | Year Ended December 31, |  |  |  |
(in millions) |  | 2019 |  | 2018 |  | 2017
Technologies & Equipment |  | $ | 2,283.2 |  |  | $ | 2,167.7 |  |  | $ | 2,202.8 |
Consumables |  | 1,746.0 |  |  | 1,818.6 |  |  | 1,790.6 |
Total net sales |  | $ | 4,029.2 |  |  | $ | 3,986.3 |  |  | $ | 3,993.4 |
Net Sales, Excluding Precious Metal Content |  | Year Ended December 31, |  |  |  |
(in millions) |  | 2019 |  | 2018 |  | 2017
Technologies & Equipment |  | $ | 2,283.2 |  |  | $ | 2,167.7 |  |  | $ | 2,202.8 |
Consumables |  | 1,704.9 |  |  | 1,781.4 |  |  | 1,750.1 |
Total net sales, excluding precious metal content |  | $ | 3,988.1 |  |  | $ | 3,949.1 |  |  | $ | 3,952.9 |
Precious metal content of sales |  | 41.1 |  |  | 37.2 |  |  | 40.5 |
Total net sales, including precious metal content |  | $ | 4,029.2 |  |  | $ | 3,986.3 |  |  | $ | 3,993.4 |
Depreciation and Amortization |  | Year Ended December 31, |  |  |  |
(in millions) |  | 2019 |  | 2018 |  | 2017
Technologies & Equipment |  | $ | 257.8 |  |  | $ | 238.4 |  |  | $ | 261.3 |
Consumables |  | 54.2 |  |  | 90.8 |  |  | 53.7 |
All Other (a) |  | 10.8 |  |  | 1.6 |  |  | 1.4 |
Total |  | $ | 322.8 |  |  | $ | 330.8 |  |  | $ | 316.4 |
(a) Includes amounts recorded at Corporate headquarters.
Segment Adjusted Operating Income (Loss) |  | Year Ended December 31, |  |  |  |
(in millions) |  | 2019 |  | 2018 |  | 2017
Technologies & Equipment |  | $ | 431.4 |  |  | $ | 277.9 |  |  | $ | 393.9 |
Consumables |  | 437.1 |  |  | 459.9 |  |  | 495.5 |
Segment adjusted operating income before income taxes and interest |  | $ | 868.5 |  |  | $ | 737.8 |  |  | $ | 889.4 |
Reconciling Items (income) expense: |  |  |  |  |  |
All other (a) |  | 230.7 |  |  | 184.0 |  |  | 180.3 |
Restructuring and other costs |  | 80.7 |  |  | 221.0 |  |  | 425.2 |
Goodwill impairment |  | — |  |  | 1,085.8 |  |  | 1,650.9 |
Interest expense |  | 29.4 |  |  | 37.3 |  |  | 38.3 |
Interest income |  | (2.4) |  |  | (2.1) |  |  | (2.4) |
Other expense (income), net |  | (11.5) |  |  | (34.9) |  |  | 5.3 |
Amortization of intangible assets |  | 189.6 |  |  | 197.9 |  |  | 189.1 |
Depreciation resulting from the fair value step-up of property, plant and equipment from business combinations |  | 6.6 |  |  | 7.2 |  |  | 6.2 |
Income (loss) before income taxes |  | $ | 345.4 |  |  | $ | (958.4) |  |  | $ | (1,603.5) |
(a) Includes the results of unassigned Corporate headquarters costs and inter-segment eliminations.
Capital Expenditures |  | Year Ended December 31, |  |  |  |
(in millions) |  | 2019 |  | 2018 |  | 2017
Technologies & Equipment |  | $ | 72.8 |  |  | $ | 126.1 |  |  | $ | 92.2 |
Consumables |  | 34.0 |  |  | 42.8 |  |  | 44.0 |
All Other (a) |  | 16.1 |  |  | 13.6 |  |  | 8.1 |
Total |  | $ | 122.9 |  |  | $ | 182.5 |  |  | $ | 144.3 |
(a) Includes capital expenditures of Corporate headquarters.
Assets |  | Year Ended December 31, |  |
(in millions) |  | 2019 |  | 2018
Technologies & Equipment |  | $ | 5,926.8 |  |  | $ | 6,479.2 |
Consumables |  | 2,443.4 |  |  | 2,059.4 |
All Other (a) |  | 232.7 |  |  | 148.4 |
Total |  | $ | 8,602.9 |  |  | $ | 8,687.0 |
(a) Includes the results of unassigned Corporate headquarters costs and inter-segment eliminations. Geographic Information The following table sets forth information about the Company’s operations in different geographic areas for the years ended December 31, 2019, 2018 and 2017. Net sales reported below represent revenues for shipments made by operating businesses located in the country or territory identified, including export sales. Property, plant and equipment, net, represents those long-lived assets held by the operating businesses located in the respective geographic areas.
(in millions) |  | United States |  | Germany |  | Sweden |  | Other Foreign |  | Consolidated
2019 |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 1,374.8 |  |  | $ | 478.1 |  |  | $ | 56.6 |  |  | $ | 2,119.7 |  |  | $ | 4,029.2 |
Property, plant and equipment, net |  | 168.4 |  |  | 327.5 |  |  | 98.7 |  |  | 207.8 |  |  | 802.4 |
2018 |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 1,269.9 |  |  | $ | 494.3 |  |  | $ | 55.2 |  |  | $ | 2,166.9 |  |  | $ | 3,986.3 |
Property, plant and equipment, net |  | 211.1 |  |  | 339.3 |  |  | 99.3 |  |  | 220.9 |  |  | 870.6 |
2017 |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 1,376.5 |  |  | $ | 493.3 |  |  | $ | 52.4 |  |  | $ | 2,071.2 |  |  | $ | 3,993.4 |
Property, plant and equipment, net |  | 202.0 |  |  | 331.5 |  |  | 103.4 |  |  | 239.1 |  |  | 876.0 |
Product and Customer Information Net sales by product category were as follows:
|  | Year Ended December 31, |  |  |  |
(in millions) |  | 2019 |  | 2018 |  | 2017
Dental consumables products |  | $ | 1,687.7 |  |  | $ | 1,739.8 |  |  | $ | 1,663.6 |
Dental technology and equipment products |  | 2,004.8 |  |  | 1,897.7 |  |  | 2001.8 |
Healthcare consumable products |  | 336.7 |  |  | 348.8 |  |  | 328.0 |
Total net sales |  | $ | 4,029.2 |  |  | $ | 3,986.3 |  |  | $ | 3,993.4 |
Dental Consumable Products Dental consumable products consist of value added dental supplies and small equipment used in dental offices for the treatment of patients. It also includes specialized treatment products used within the dental office and laboratory settings including products used in the preparation of dental appliances by dental laboratories. Dentsply Sirona’s dental supplies include endodontic (root canal) instruments and materials, dental anesthetics, prophylaxis paste, dental sealants, impression materials, restorative materials, tooth whiteners and topical fluoride. Small equipment products include intraoral curing light systems, dental diagnostic systems and ultrasonic scalers and polishers. The Company’s products used in dental laboratories include dental prosthetics, including artificial teeth, precious metal dental alloys, dental ceramics and crown and bridge materials. Dental laboratory equipment products include laboratory-based CAD/CAM milling systems, amalgamators, mixing machines and porcelain furnaces. Dental Technology and Equipment Products Dental technology products consist of basic and high-tech dental equipment such as treatment centers, imaging equipment, dental handpieces and computer aided design and machining "CAD/CAM" systems equipment for dental practitioners. The product category also includes high-tech and state-of-art dental implants and related scanning equipment and treatment software, orthodontic clear aligners and appliances for dental practitioners and specialists. The Company offers the broadest line of products to fully outfit a dental practitioner’s office. Treatment centers comprise a broad range of products from basic dentist chairs to sophisticated chair-based units with integrated diagnostic, hygiene and ergonomic functionalities, as well as specialist centers used in preventative treatment and for training purposes. Imaging systems consist of a broad range of diagnostic imaging systems for 2D or 3D, panoramic, and intra-oral applications. Dental CAD/CAM Systems are products designed for dental offices used for dental restorations, which includes several types of restorations, such as inlays, onlays, veneers, crowns, bridges, copings and bridge frameworks made from ceramic, metal or composite blocks. This product line also includes high-tech CAD/CAM techniques of chairside economical restoration of aesthetic ceramic dentistry, or CEREC equipment. This equipment allows for in-office application that enables dentists to produce high quality restorations from ceramic material and insert them into the patient’s mouth during a single appointment. CEREC has a number of advantages compared to the traditional out-of-mouth pre-shaped restoration method, as CEREC does not require a physical model, restorations can be created in the dentist’s office and the procedure can be completed in a single visit. Healthcare Consumable Products Healthcare consumable products consist mainly of urology catheters, medical drills and other non-medical products. Concentration Risk For the year ended December 31, 2019, one customer accounted for approximately 13% of consolidated net sales. At December 31, 2019, two customers each accounted for approximately 12% and 17% of the consolidated accounts receivable balance. For the year ended December 31, 2018, one customer accounted for approximately 10% of consolidated net sales. At December 31, 2018, two customers accounted for approximately 10% and 13%, respectively, of the consolidated accounts receivable balance. For the year ended December 31, 2017, the Company had one customers that accounted for approximately 15% each of consolidated net sales. For the years ended December 31, 2019, 2018, and 2017, third party export sales from the U.S. were less than ten percent of consolidated net sales.

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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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