v3.25.2
REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Revenues are derived primarily from the sale of dental equipment and dental and healthcare consumable products. Revenues are measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services.

Net sales disaggregated by product category were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Equipment & Instruments$136 $139 $270 $264 
CAD/CAM107 114 208 236 
Connected Technology Solutions243 253 $478 $500 
Essential Dental Solutions387 375 $740 $739 
Orthodontics63 95 $122 $193 
Implants & Prosthetics163 181 321 354 
Orthodontic and Implant Solutions226 276 $443 $547 
Wellspect Healthcare80 80 $154 $151 
Total net sales$936 $984 $1,815 $1,937 
Net sales disaggregated by geographic region were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
United States$293 $360 $595 $715 
Europe404 387 766 763 
Rest of World239 237 454 459 
Total net sales$936 $984 $1,815 $1,937 

Contract Assets and Liabilities

The Company does not typically have contract assets in the normal course of its business. Contract liabilities, which represent billings in excess of revenue recognized, are primarily related to advanced billings for customer orthodontic aligner treatments where the performance obligation has not yet been satisfied, and deferred revenue associated with loyalty points earned but not yet redeemed by customers under the Company’s loyalty point program. The Company recorded deferred revenue of $109 million and $36 million in Accrued liabilities and Other noncurrent liabilities, respectively, in the Consolidated Balance Sheets at June 30, 2025. The Company recorded deferred revenue of $95 million and $49 million in Accrued liabilities and Other noncurrent liabilities, respectively, in the Consolidated Balance Sheets at December 31, 2024. During the three and six months ended June 30, 2025, the Company recognized approximately $29 million and $70 million of net sales, respectively, which were previously deferred as of December 31, 2024. During the three and six months ended June 30, 2024, the Company recognized approximately $23 million and $62 million of net sales, respectively, which were previously deferred as of December 31, 2023. The Company expects to recognize most of the remaining deferred revenue in net sales within the next twelve months.

Allowance for Doubtful Accounts

Accounts and notes receivable-trade, net are stated net of allowances for doubtful accounts and trade discounts, which were $11 million at June 30, 2025 and $14 million at December 31, 2024. For the three and six months ended June 30, 2025 and 2024, changes to the provision for doubtful accounts, including write-offs of accounts receivable that were previously reserved, were not significant. Changes to this provision are included in Selling, general, and administrative expenses in the Consolidated Statements of Operations.