Item 4. CONTROLS AND PROCEDURES
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Item 4. CONTROLS AND PROCEDURES
CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of management, including
our principal executive officer and
principal financial officer, we evaluated the effectiveness of the design and operation of our disclosure controls and
procedures as of the end of the period covered by this quarterly report
as such term is defined in Rules 13a-15(e)
and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”).
Based
on this evaluation, our management, including our principal executive officer and principal
financial officer,
concluded that our disclosure controls and procedures were effective as of July 1, 2023, to
ensure that all material
information required to be disclosed by us in reports that we file or submit
under the Exchange Act is accumulated
and communicated to them as appropriate to allow timely decisions
regarding required disclosure and that all such
information is recorded, processed, summarized and reported within the
time periods specified in the SEC’s rules
and forms.
Changes in Internal Control over Financial Reporting
On April 5, 2023, we acquired a 57% voting equity interest in Biotech Dental
(“Biotech Dental”),
which is a
provider of dental implants, clear aligners, and digital dental software
headquartered in France with operations
throughout Europe.
The full integration of Biotech Dental will extend beyond year-end
and, therefore, we
anticipate excluding Biotech Dental from our annual assessment of
internal control over financial reporting as of
December 30, 2023, as permitted by SEC staff interpretive guidance for newly acquired
businesses.
During the quarter ended July 1, 2023,
we completed the acquisition of dental businesses in Europe and South
America, a medical business in Australia and a technology business in
the U.S.
Also, post-acquisition integration
related activities continued for our dental and medical businesses acquired
during prior quarters.
These
acquisitions, the majority of which utilize separate information and
financial accounting systems, have been
included in our condensed consolidated financial statements since their respective
dates of acquisition.
We also completed systems implementation activities in China related to a new ERP system for a dental business.
Finally, we continued systems implementation activities in the U.S. for two of our dental businesses.
The combination of acquisitions (including Biotech Dental), continued acquisition
integrations and systems
implementation activity undertaken during the quarter and carried over
from prior quarters when considered in the
aggregate, represents a material change in our internal control over financial reporting.
All acquisitions, continued acquisition integrations and systems implementation
activity involve necessary and
appropriate change-management controls that are considered in our quarterly
assessment of changes in our internal
control over financial reporting.
Limitations of the Effectiveness of Internal Control
A control system, no matter how well conceived and operated, can provide only
reasonable, not absolute, assurance
that the objectives of the internal control system are met.
Because of the inherent limitations of any internal control
system, no evaluation of controls can provide absolute assurance that all control
issues, if any, within a company
have been detected.
PART
II.
OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS
For a discussion of Legal Proceedings, see
of the Notes to the Condensed Consolidated
Financial Statements included under Item 1.
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