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SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION Effective April 1, 2023 the Company realigned its reporting structure due to certain organizational changes. The Company realigned its reportable segments to reflect changes in how the Company manages its operations, specifically the level at which its chief operating decision maker (“CODM”) regularly reviews operating results and allocates resources. As a result, the reportable segments changed from Technology & Equipment and Consumables to (i) Connected Technology Solutions, (ii) Essential Dental Solutions, (iii) Orthodontic and Implant Solutions, and (iv) Wellspect Healthcare. The Company has four operating segments that are organized primarily by product. They generally have overlapping geographical presence, customer bases, distribution channels, and regulatory oversight with the exception of Wellspect Healthcare, which has a more discrete market and regulatory environment specific to the industry for medical devices. These operating segments which also form the Company’s reportable segments, are identified in accordance with how the Company’s CODM 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 the 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, goodwill and intangible asset impairments, 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 business combinations. Asset and other balance sheet information are not reported to the CODM. A description of the products and services provided within each of the Company’s four reportable segments is provided below. Connected Technology Solutions This segment includes the design, manufacture and sales of the Company’s dental technology and equipment products. These products include the Equipment & Instruments and CAD/CAM product categories. Equipment & Instruments The Equipment & Instruments product category consists of basic and high-tech dental equipment such as imaging equipment, motorized dental handpieces, treatment centers, and other instruments for dental practitioners and specialists. Imaging equipment serves as a key point of entry to the Company’s digital workflow offerings and consists of a broad range of diagnostic imaging systems for 2D or 3D, panoramic, and intraoral applications, as well as cone-beam computed tomography systems (“CBCT”). Treatment centers comprise a broad range of products from basic dental chairs to sophisticated chair-based units with integrated diagnostic, hygienic and ergonomic functionalities, as well as specialist centers used in preventive treatment and for training purposes. This product group also includes other lab equipment, such as amalgamators, mixing machines and porcelain furnaces. CAD/CAM Dental CAD/CAM technologies are products designed for dental offices to support numerous digital workflows for procedures such as dental restorations through integrations with DS Core, our cloud-based platform. This product category includes intraoral scanners, 3-D printers, mills, and certain software and services, as well as a full-chairside economical restoration of esthetic ceramic dentistry offering called CEREC. A full-chairside offering enables dentists to practice same day or single visit dentistry. Essential Dental Solutions This segment includes the development, manufacture and sales of the Company’s value-added endodontic, restorative, and preventive consumable products and small equipment used in dental offices for the treatment of patients. Offerings in this segment also include specialized treatment products including products used in the creation of dental appliances. Essential Dental Solutions products are designed to operate in an integrated system to provide solutions for high-tech dental procedures. The endodontic products include motorized endodontic handpieces, files, sealers, irrigation needles and other tools or single-use solutions which support root canal procedures. The restorative products include dental ceramics and other materials used in prosthetic restorations including crowns and veneers. The preventive products include small equipment products such as curing light systems, dental diagnostic systems and ultrasonic scalers and polishers, as well as other dental supplies including dental anesthetics, prophylaxis paste, dental sealants and impression materials. Orthodontic and Implant Solutions This segment includes the design, manufacture, and sales of the Company’s various digital implant systems and innovative dental implant products, digital dentures and dental professional directed aligner solutions. Offerings in this segment also include application of our digital services and technology, including those provided by DS Core, our cloud-based platform. Orthodontics The Orthodontics product category includes SureSmile, an aligner solution provided through clinician offices, and Byte, a direct-to-consumer aligner solution. The Orthodontics product category also includes a High Frequency Vibration technology device known as VPro or as HyperByte within Byte’s product offering, as well as the new SureSmile Simulator which uses intraoral scanners and our DS Core platform to create a 3D visualization of patient outcomes. SureSmile aligner solutions include whitening kits and retainers. Byte aligner solutions include Byte Plus with in-office intraoral scanning for treatment planning. The aligner offerings also include software technology that enables aligner treatment planning and seamless connectivity of a digital workflow from diagnostics through treatment delivery. Implants & Prosthetics The Implants & Prosthetics product category includes technology to support the Company’s digital workflows for implant systems, a portfolio of innovative dental implant products, digital dentures, crown and bridge porcelain products, bone regenerative and restorative solutions, treatment planning software and educational programs. The Implants & Prosthetics product category is supported by key technologies including custom abutments, advanced tapered immediate load screws and regenerative bone growth factor. Offerings in this category also include dental prosthetics such as artificial teeth and precious metal dental alloys. Wellspect Healthcare This segment includes the design, manufacture, and sales of the Company’s innovative continence care solutions for both urinary and bowel management. This category consists mainly of urology catheters and other healthcare-related consumable products. The Company’s segment information for the years ended December 31 was as follows:
Net Sales |  | Year Ended December 31,
(in millions) |  | 2023 |  | 2022 |  | 2021
Connected Technology Solutions |  | $ | 1,169 |  |  | $ | 1,219 |  |  | $ | 1,348 |
Essential Dental Solutions |  | 1,468 |  |  | 1,427 |  |  | 1,516 |
Orthodontic and Implant Solutions |  | 1,040 |  |  | 1,006 |  |  | 1,064 |
Wellspect Healthcare |  | 288 |  |  | 270 |  |  | 303 |
Total net sales |  | $ | 3,965 |  |  | $ | 3,922 |  |  | $ | 4,231 |
Depreciation and Amortization |  | Year Ended December 31,
(in millions) |  | 2023 |  | 2022 |  | 2021
Connected Technology Solutions |  | $ | 176 |  |  | $ | 172 |  |  | $ | 185 |
Essential Dental Solutions |  | 33 |  |  | 31 |  |  | 41 |
Orthodontic and Implant Solutions |  | 97 |  |  | 90 |  |  | 83 |
Wellspect Healthcare |  | 18 |  |  | 21 |  |  | 24 |
All Other (a) |  | 19 |  |  | 14 |  |  | 14 |
Total |  | $ | 343 |  |  | $ | 328 |  |  | $ | 347 |
(a) Includes amounts recorded at corporate headquarters.
Segment Adjusted Operating Income |  | Year Ended December 31,
(in millions) |  | 2023 |  | 2022 |  | 2021
Connected Technology Solutions |  | $ | 101 |  |  | $ | 161 |  |  | $ | 267 |
Essential Dental Solutions |  | 478 |  |  | 467 |  |  | 511 |
Orthodontic and Implant Solutions |  | 156 |  |  | 193 |  |  | 217 |
Wellspect Healthcare |  | 87 |  |  | 73 |  |  | 87 |
Segment adjusted operating income |  | $ | 822 |  |  | $ | 894 |  |  | $ | 1,082 |
Reconciling items (income) expense: |  |  |  |  |  |
All other (a) |  | 319 |  |  | 318 |  |  | 229 |
Goodwill and intangible asset impairments |  | 307 |  |  | 1,287 |  |  | — |
Restructuring and other costs |  | 67 |  |  | 14 |  |  | 17 |
Interest expense, net |  | 81 |  |  | 65 |  |  | 49 |
Other expense (income), net |  | 9 |  |  | 53 |  |  | 14 |
Amortization of intangible assets |  | 211 |  |  | 209 |  |  | 222 |
Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations |  | 3 |  |  | 3 |  |  | 6 |
(Loss) income before income taxes |  | $ | (175) |  |  | $ | (1,055) |  |  | $ | 545 |
(a) Includes the results of unassigned corporate headquarters costs. Geographic Information The following tables set forth information about the Company’s significant operations by geographic areas, for the years ended December 31, 2023, 2022, and 2021. Net sales reported below represent revenues from external customers in those respective countries based on the destination of shipments.
|  | Year Ended December 31,
(in millions) |  | 2023 |  | 2022 |  | 2021
Net sales |  |  |  |  |  |
United States |  | $ | 1,437 |  |  | $ | 1,393 |  |  | $ | 1,484 |
Germany |  | 431 |  |  | 447 |  |  | 482 |
Other Foreign |  | 2,097 |  |  | 2,082 |  |  | 2,265 |
Total net sales |  | $ | 3,965 |  |  | $ | 3,922 |  |  | $ | 4,231 |
Property, plant and equipment, net, represents those long-lived assets held by the operating businesses located in the respective geographic areas.
|  | Year Ended December 31,
(in millions) |  | 2023 |  | 2022 |  | 2021
Property, plant, and equipment, net |  |  |  |  |  |
United States |  | $ | 194 |  |  | $ | 174 |  |  | $ | 166 |
Germany |  | 260 |  |  | 275 |  |  | 309 |
Sweden |  | 105 |  |  | 98 |  |  | 107 |
Other Foreign |  | 241 |  |  | 214 |  |  | 191 |
Total property, plant, and equipment, net |  | $ | 800 |  |  | $ | 761 |  |  | $ | 773 |
Product and Customer Information For information on the Company’s net sales by product category comprising each of the reportable segments, see Note 2, Revenue. Concentration Risk Customers that accounted for 10% or more of net sales or accounts receivable for the years ended December 31, 2023 and 2022 were as follows:
|  | Year Ended December 31,
|  | 2023 |  | 2022 |
|  | % of net sales |  | % of accounts receivable |  | % of net sales |  | % of accounts receivable |
Henry Schein, Inc. |  | 14 | % |  | 11 | % |  | 11 | % |  | 15 | % |
Patterson Companies, Inc. |  | N/A |  | 10 | % |  | N/A |  | 12 | % |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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