v3.26.3
Segment Data
 9 Months Ended
Sep. 26, 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
technical services.
This segment
also includes value-added services such as financial services, continuing
education services, consulting and other
services.
This segment also markets and sells under our own corporate brand
a portfolio of cost-effective, high-
quality consumable merchandise.
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.
Global Technology includes development and distribution of practice management
software, e-services and other products, which are distributed to health
care providers.
Our organizational structure also includes Corporate, which consists primarily of
income and expenses associated
with support functions and projects.
Our chief operating decision maker (“CODM”) is our Chief Executive
Officer (“CEO”).
Our CODM uses adjusted
operating income as the profitability metric for purposes of making decisions
about allocation of resources to each
segment and assessing performance of each segment.
Adjusted operating income provides a measure of our
underlying segment results that is in line with our approach to risk and performance
management.
We define
adjusted operating income as operating income adjusted to exclude
(a) direct cybersecurity costs and related
insurance recovery proceeds, (b) amortization of acquisition intangibles, (c) organizational
restructuring and related
expenses, (d) impairment of intangible assets, (e) changes in fair value of
contingent consideration, (f) litigation
settlements, and (g) costs associated with shareholder advisory
matters and select implementation related value
creation consulting costs.
These adjustments are: (i) non-cash or non-recurring in nature; (ii) not
allocable or
controlled by the segment; or (iii) not tied to the operational performance
of the segment.
Assets by segment are
not a measure used to assess the performance of the Company by CODM and
thus are not reported in our
disclosures.
Segment adjusted operating income is presented in the following
table to reconcile to operating income as
presented on the condensed consolidated statement of income.
The reconciliation from operating income to income
before taxes and equity in earnings of affiliates is presented on our condensed consolidated
statements of income.
Three Months Ended
Nine Months Ended
September 26,
September 27,
September 26,
September 27,
2026
2025
2026
2025
Gross Sales:
Global Distribution and Value
-Added Services
(1)
$
2,944
$
2,840
$
8,694
$
8,247
Global Specialty Products
(2)
391
369
1,207
1,122
Global Technology
(3)
181
173
535
502
Total Gross Sales
3,516
3,382
10,436
9,871
Less: Eliminations:
Global Distribution and Value
-Added Services
(4)
(5)
(13)
(13)
Global Specialty Products
(41)
(38)
(126)
(111)
Global Technology
-
-
-
-
Total Eliminations
(45)
(43)
(139)
(124)
Net Sales:
Global Distribution and Value
-Added Services
2,940
2,835
8,681
8,234
Global Specialty Products
350
331
1,081
1,011
Global Technology
181
173
535
502
Total Net Sales
3,471
3,339
10,297
9,747
Segment Cost of Sales:
(4)
Global Distribution and Value
-Added Services
2,186
2,138
6,460
6,176
Global Specialty Products
169
165
532
501
Global Technology
56
58
165
163
Segment Operating Expenses:
(5)
Global Distribution and Value
-Added Services
537
524
1,649
1,567
Global Specialty Products
166
133
499
442
Global Technology
72
69
222
206
Operating Income:
Global Distribution and Value
-Added Services
221
178
585
504
Global Specialty Products
56
71
176
179
Global Technology
53
46
148
133
Total Segment Operating Income
330
295
909
816
Corporate, net
(51)
(33)
(127)
(99)
Adjustments
(6)
(86)
(98)
(236)
(227)
Total Operating Income
$
193
$
164
$
546
$
490
Three Months Ended
Nine Months Ended
September 26,
September 27,
September 26,
September 27,
2026
2025
2026
2025
Depreciation and Amortization:
Global Distribution and Value
-Added Services
$
8
$
7
$
22
$
20
Global Specialty Products
10
11
28
28
Global Technology
10
9
31
26
Total Segment Depreciation and Amortization
28
27
81
74
Corporate
14
7
35
22
Acquisition intangible amortization within
adjustments
(6)
44
46
135
133
Total Depreciation and Amortization
$
86
$
80
$
251
$
229
Global Distribution and Value
-Added Services: Includes distribution of infection-control products, handpieces, preventatives,
impression materials, composites, anesthetics, teeth, gypsum, acrylics, articulators, abrasives, personal protective equipment
(“PPE”) products,
branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, dental chairs, delivery units
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.
Cost of goods sold in our Global Technology segment consists
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
Nine Months Ended
September 26,
September 27,
September 26,
September 27,
2026
2025
2026
2025
Adjustments:
Restructuring and related costs
$
(22)
$
(34)
$
(63)
$
(82)
Acquisition intangible amortization
(44)
(46)
(135)
(133)
Cyber incident-insurance proceeds, net of third-party advisory
expenses
-
-
-
20
Change in contingent consideration
(1)
(6)
-
(4)
Litigation settlements
(1)
(2)
(1)
(3)
Impairment of intangible assets
-
-
-
(1)
Costs associated with shareholder advisory matters and select
implementation related value creation consulting costs
(18)
(10)
(37)
(24)
Total adjustments
$
(86)
$
(98)
$
(236)
$
(227)