Segment Data |
6 Months Ended |
|---|---|
Jun. 27, 2026 | |
| Segment Data [Abstract] | |
| Segment Data | Note 4 Segment Data We conduct our business through three reportable segments : (i) Global Distribution and Value-Added Services; (ii) Global Specialty Products; and (iii) Global Technology. 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 also includes value-added services such as financial services, continuing services. quality consumable merchandise. implant and biomaterial products; and endodontic, orthodontic and orthopedic related products and services. software, e-services and other products, which are distributed to health Our organizational structure also includes Corporate, which consists primarily of with support functions and projects. Our chief operating decision maker (“CODM”) is our Chief Executive operating income as the profitability metric for purposes of making decisions segment and assessing performance of each segment. underlying segment results that is in line with our approach to risk and performance adjusted operating income as operating income adjusted to exclude insurance recovery proceeds, (b) amortization of acquisition intangibles, (c) organizational expenses, (d) impairment of intangible assets, (e) changes in fair value of settlements, and (g) costs associated with shareholder advisory creation consulting costs. controlled by the segment; or (iii) not tied to the operational performance not a measure used to assess the performance of the Company by CODM and disclosures. Segment adjusted operating income is presented in the following presented on the condensed consolidated statement of income. before taxes and equity in earnings of affiliates is presented on our condensed consolidated Three Months Ended Six Months Ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Gross Sales: Global Distribution and Value (1) $ 2,911 $ 2,731 $ 5,750 $ 5,407 Global Specialty Products (2) 419 386 816 753 Global Technology (3) 181 167 354 329 Total Gross Sales 3,511 3,284 6,920 6,489 Less: Eliminations: Global Distribution and Value (6) (4) (9) (8) Global Specialty Products (47) (40) (85) (73) Global Technology - - - - Total Eliminations (53) (44) (94) (81) Net Sales: Global Distribution and Value 2,905 2,727 5,741 5,399 Global Specialty Products 372 346 731 680 Global Technology 181 167 354 329 Total Net Sales 3,458 3,240 6,826 6,408 Segment Cost of Sales: (4) Global Distribution and Value 2,167 2,043 4,274 4,038 Global Specialty Products 186 175 363 336 Global Technology 55 53 109 105 Segment Operating Expenses: (5) Global Distribution and Value 563 529 1,112 1,043 Global Specialty Products 171 159 333 309 Global Technology 77 69 150 137 Operating Income: Global Distribution and Value 181 159 364 326 Global Specialty Products 62 52 120 108 Global Technology 49 45 95 87 Total Segment Operating Income 292 256 579 521 Corporate, net (42) (31) (76) (66) Adjustments (6) (79) (74) (150) (129) Total Operating Income $ 171 $ 151 $ 353 $ 326 Three Months Ended Six Months Ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Depreciation and Amortization: Global Distribution and Value $ 7 $ 7 $ 14 $ 13 Global Specialty Products 9 9 18 17 Global Technology 11 9 21 17 Total Segment Depreciation and Amortization 27 25 53 47 Corporate 11 7 21 15 Acquisition intangible amortization within adjustments (6) 46 44 91 87 Total Depreciation and Amortization $ 84 $ 76 $ 165 $ 149 Global Distribution and Value impression materials, composites, anesthetics, teeth, gypsum, acrylics, articulators, abrasives, personal protective equipment (“PPE”) products, 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. (4) Cost of goods sold in our Global Distribution and Value-Added Services segment and our Global Specialty Products segment includes product cost and inbound and outbound freight charges. primarily of software development and third-party provider costs, including technology use and hosting fees. (5) Significant segment operating expenses for our reportable segments and Corporate include primarily compensation costs, and to a lesser extent, rent, depreciation and maintenance costs related to operating our facilities. 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 Six Months Ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Adjustments: Restructuring and related costs $ (29) $ (23) $ (41) $ (48) Acquisition intangible amortization (46) (44) (91) (87) Cyber incident-insurance proceeds, net of third-party advisory expenses - - - 20 Change in contingent consideration 2 - 1 2 Litigation settlements - (1) - (1) Impairment of intangible assets - - - (1) Costs associated with shareholder advisory matters and select implementation related value creation consulting costs (6) (6) (19) (14) Total adjustments $ (79) $ (74) $ (150) $ (129) |