v3.26.1
REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2026
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)2026202520262025
Equipment & Instruments$137 $136 $272 $270 
CAD/CAM102 107 213 208 
Connected Technology Solutions239 243 $485 $478 
Essential Dental Solutions376 387 $726 $740 
Orthodontics40 63 $85 $122 
Implants & Prosthetics157 163 311 321 
Orthodontic and Implant Solutions197 226 $396 $443 
Wellspect Healthcare86 80 $171 $154 
Total net sales$898 $936 $1,778 $1,815 

The Company’s geographic regions for reporting net sales consist of countries in (i) North and South America (“Americas”), (ii) Europe, the Middle East, and Africa (“EMEA”), and (iii) Asia Pacific (“APAC”). Prior period net sales amounts have been recast to conform to the current period presentation, reflecting a shift to a regional geographic presentation,
which aligns with how the Company manages commercial activities and reports net sales internally. The change in regional geographic presentation was effective as of January 1, 2026. This change did not impact the Company’s consolidated financial statements.
Net sales disaggregated by geographic region were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Americas$316 $354 $646 $718 
EMEA452 450 887 857 
APAC130 132 245 240 
Total net sales$898 $936 $1,778 $1,815 

Contract Assets and Liabilities

The Company does not typically have contract assets in the course of its business. Contract liabilities, which represent billings in excess of revenue recognized, are primarily related to deferred revenue associated with advanced billings for customer orthodontic treatments where the performance obligation has not yet been satisfied. The Company recorded deferred revenue of $71 million and $31 million in Accrued liabilities and Other noncurrent liabilities, respectively, in the Consolidated Balance Sheets at June 30, 2026. The Company recorded deferred revenue of $74 million and $33 million in Accrued liabilities and Other noncurrent liabilities, respectively, in the Consolidated Balance Sheets at December 31, 2025. During the three and six months ended June 30, 2026, the Company recognized approximately $14 million and $50 million of net sales, respectively, which were previously deferred as of December 31, 2025. 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. 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 $12 million at June 30, 2026 and $12 million at December 31, 2025. For the three and six months ended June 30, 2026 and 2025, 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.