Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 16, 2017 | Jun. 25, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Central Index Key | 1,000,228 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | HSIC | ||
Entity Registrant Name | HENRY SCHEIN INC | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 79,196,697 | ||
Entity Public Float | $ 13,826,764,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 62,381 | $ 72,086 |
Accounts receivable, net of reserves of $90,329 and $77,008 | 1,254,139 | 1,229,816 |
Inventories, net | 1,635,750 | 1,509,957 |
Deferred income taxes | 0 | 58,159 |
Prepaid expenses and other | 360,510 | 361,082 |
Total current assets | 3,312,780 | 3,231,100 |
Property and equipment, net | 333,906 | 318,476 |
Goodwill | 2,019,740 | 1,907,593 |
Other intangibles, net | 621,180 | 592,971 |
Investments and other | 442,790 | 454,600 |
Total assets | 6,730,396 | 6,504,740 |
Current liabilities: | ||
Accounts payable | 977,249 | 1,005,798 |
Bank credit lines | 437,476 | 328,631 |
Current maturities of long-term debt | 65,923 | 17,331 |
Accrued expenses: | ||
Payroll and related | 266,463 | 258,416 |
Taxes | 151,750 | 161,760 |
Other | 391,785 | 375,061 |
Total current liabilities | 2,290,646 | 2,146,997 |
Long-term debt | 715,457 | 463,752 |
Deferred income taxes | 51,589 | 252,862 |
Other liabilities | 264,264 | 212,121 |
Total liabilities | 3,321,956 | 3,075,732 |
Redeemable noncontrolling interests | 607,636 | 542,194 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 1,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value, 240,000,000 shares authorized, 79,402,505 outstanding on December 31, 2016 and 82,415,320 outstanding on December 26, 2015 | 794 | 824 |
Additional paid-in capital | 127,536 | 207,374 |
Retained earnings | 2,981,777 | 2,895,997 |
Accumulated other comprehensive income (loss) | (317,041) | (219,939) |
Total Henry Schein, Inc. stockholders' equity | 2,793,066 | 2,884,256 |
Noncontrolling interests | 7,738 | 2,558 |
Total stockholders' equity | 2,800,804 | 2,886,814 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 6,730,396 | $ 6,504,740 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Current assets: | ||
Accounts receivable, reserves (in dollars) | $ 90,329 | $ 77,008 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, shares outstanding (in shares) | 79,402,505 | 82,415,320 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 11,571,668 | $ 10,629,719 | $ 10,371,390 |
Cost of sales | 8,337,699 | 7,617,460 | 7,460,075 |
Gross profit | 3,233,969 | 3,012,259 | 2,911,315 |
Operating expenses: | |||
Selling, general and administrative | 2,416,504 | 2,243,356 | 2,196,173 |
Restructuring costs | 45,891 | 34,931 | 0 |
Operating income | 771,574 | 733,972 | 715,142 |
Other income (expense): | |||
Interest income | 13,275 | 12,935 | 13,655 |
Interest expense | (31,893) | (26,008) | (24,057) |
Other, net | 2,879 | (141) | 4,572 |
Income before taxes and equity in earnings of affiliates | 755,835 | 720,758 | 709,312 |
Income taxes | (217,958) | (211,391) | (215,610) |
Equity in earnings of affiliates | 18,518 | 14,060 | 11,734 |
Net income | 556,395 | 523,427 | 505,436 |
Less: Net income attributable to noncontrolling interests | (49,617) | (44,369) | (39,359) |
Net income attributable to Henry Schein, Inc. | $ 506,778 | $ 479,058 | $ 466,077 |
Earnings per share attributable to Henry Schein, Inc.: | |||
Basic (in dollars per share) | $ 6.27 | $ 5.78 | $ 5.53 |
Diluted (in dollars per share) | $ 6.19 | $ 5.69 | $ 5.44 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 80,820 | 82,844 | 84,265 |
Diluted (in shares) | 81,862 | 84,125 | 85,740 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 556,395 | $ 523,427 | $ 505,436 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gain (loss) | (98,402) | (134,035) | (157,698) |
Unrealized gain (loss) from foreign currency hedging activities | (992) | 1,994 | (2,337) |
Unrealized investment gain (loss) | 2 | 134 | 379 |
Pension adjustment gain (loss) | (399) | 2,270 | (7,441) |
Other comprehensive income (loss), net of tax | (99,791) | (129,637) | (167,097) |
Comprehensive income (loss) | 456,604 | 393,790 | 338,339 |
Comprehensive income attributable to noncontrolling interests: | |||
Net income | (49,617) | (44,369) | (39,359) |
Foreign currency translation (gain) loss | 2,689 | 4,830 | 4,116 |
Comprehensive income attributable to noncontrolling interests | (46,928) | (39,539) | (35,243) |
Comprehensive income (loss) attributable to Henry Schein, Inc. | $ 409,676 | $ 354,251 | $ 303,096 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 28, 2013 | $ 2,788,001 | $ 856 | $ 318,225 | $ 2,398,267 | $ 67,849 | $ 2,804 |
Beginning Balance (in shares) at Dec. 28, 2013 | 85,622,452 | |||||
Net income (excluding amounts attributable to Redeemable noncontrolling interests) | 466,695 | $ 0 | 0 | 466,077 | 0 | 618 |
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) | (153,618) | 0 | 0 | 0 | (153,582) | (36) |
Unrealized gain (loss) from foreign currency hedging activities, net of tax impact | (2,337) | 0 | 0 | 0 | (2,337) | 0 |
Unrealized investment gain (loss), net of tax impact | 379 | 0 | 0 | 0 | 379 | 0 |
Pension adjustment gain (loss), net of tax impact | (7,441) | 0 | 0 | 0 | (7,441) | 0 |
Dividends paid | (544) | 0 | 0 | 0 | 0 | (544) |
Initial noncontrolling interests and adjustments related to business acquisitions | 753 | 0 | 744 | 0 | 0 | 9 |
Change in fair value of redeemable securities | (40,836) | 0 | (40,836) | 0 | 0 | 0 |
Repurchase and retirement of common stock - Value | (299,989) | $ (25) | (78,143) | (221,821) | 0 | 0 |
Repurchase and retirement of common stock - Shares | (2,528,209) | |||||
Stock issued upon exercise of stock options, including tax benefit - Value | 42,652 | $ 6 | 42,646 | 0 | 0 | 0 |
Stock issued upon exercise of stock options, including tax benefit - Shares | 637,014 | |||||
Stock-based compensation expense - Value | 45,876 | $ 5 | 45,871 | 0 | 0 | 0 |
Stock-based compensation expense - Shares | 464,124 | |||||
Shares withheld for payroll taxes - Value | (22,572) | $ (2) | (22,570) | 0 | 0 | 0 |
Shares withheld for payroll taxes - Shares | (186,844) | |||||
Liability for cash settlement stock-based compensation awards | (574) | $ 0 | (574) | 0 | 0 | 0 |
Ending Balance at Dec. 27, 2014 | 2,816,445 | $ 840 | 265,363 | 2,642,523 | (95,132) | 2,851 |
Ending Balance (in shares) at Dec. 27, 2014 | 84,008,537 | |||||
Net income (excluding amounts attributable to Redeemable noncontrolling interests) | 479,839 | $ 0 | 0 | 479,058 | 0 | 781 |
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) | (129,245) | 0 | 0 | 0 | (129,205) | (40) |
Unrealized gain (loss) from foreign currency hedging activities, net of tax impact | 1,994 | 0 | 0 | 0 | 1,994 | 0 |
Unrealized investment gain (loss), net of tax impact | 134 | 0 | 0 | 0 | 134 | 0 |
Pension adjustment gain (loss), net of tax impact | 2,270 | 0 | 0 | 0 | 2,270 | 0 |
Dividends paid | (657) | 0 | 0 | 0 | 0 | (657) |
Other adjustments | 213 | 0 | 222 | 0 | 0 | (9) |
Initial noncontrolling interests and adjustments related to business acquisitions | (368) | 0 | 0 | 0 | 0 | (368) |
Change in fair value of redeemable securities | (35,202) | 0 | (35,202) | 0 | 0 | 0 |
Repurchase and retirement of common stock - Value | (299,852) | $ (21) | (74,247) | (225,584) | 0 | 0 |
Repurchase and retirement of common stock - Shares | (2,084,297) | |||||
Stock issued upon exercise of stock options, including tax benefit - Value | 35,672 | $ 3 | 35,669 | 0 | 0 | 0 |
Stock issued upon exercise of stock options, including tax benefit - Shares | 297,866 | |||||
Stock-based compensation expense - Value | 44,614 | $ 4 | 44,610 | 0 | 0 | 0 |
Stock-based compensation expense - Shares | 392,855 | |||||
Shares withheld for payroll taxes - Value | (28,314) | $ (2) | (28,312) | 0 | 0 | 0 |
Shares withheld for payroll taxes - Shares | (199,641) | |||||
Liability for cash settlement stock-based compensation awards | (729) | $ 0 | (729) | 0 | 0 | 0 |
Ending Balance at Dec. 26, 2015 | $ 2,886,814 | $ 824 | 207,374 | 2,895,997 | (219,939) | 2,558 |
Ending Balance (in shares) at Dec. 26, 2015 | 82,415,320 | 82,415,320 | ||||
Net income (excluding amounts attributable to Redeemable noncontrolling interests) | $ 507,635 | $ 0 | 0 | 506,778 | 0 | 857 |
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) | (95,750) | 0 | 0 | 0 | (95,713) | (37) |
Unrealized gain (loss) from foreign currency hedging activities, net of tax impact | (992) | 0 | 0 | 0 | (992) | 0 |
Unrealized investment gain (loss), net of tax impact | 2 | 0 | 0 | 0 | 2 | 0 |
Pension adjustment gain (loss), net of tax impact | (399) | 0 | 0 | 0 | (399) | 0 |
Dividends paid | (593) | 0 | 0 | 0 | 0 | (593) |
Other adjustments | 15 | 0 | 5 | 0 | 0 | 10 |
Initial noncontrolling interests and adjustments related to business acquisitions | 4,943 | 0 | 0 | 0 | 0 | 4,943 |
Change in fair value of redeemable securities | (66,864) | 0 | (66,864) | 0 | 0 | 0 |
Repurchase and retirement of common stock - Value | (550,024) | $ (35) | (128,991) | (420,998) | 0 | 0 |
Repurchase and retirement of common stock - Shares | (3,461,782) | |||||
Stock issued upon exercise of stock options, including tax benefit - Value | 34,796 | $ 2 | 34,794 | 0 | 0 | 0 |
Stock issued upon exercise of stock options, including tax benefit - Shares | 207,916 | |||||
Stock-based compensation expense - Value | 58,246 | $ 4 | 58,242 | 0 | 0 | 0 |
Stock-based compensation expense - Shares | 377,552 | |||||
Shares withheld for payroll taxes - Value | (29,114) | $ (1) | (29,113) | 0 | 0 | 0 |
Shares withheld for payroll taxes - Shares | (164,444) | |||||
Liability for cash settlement stock-based compensation awards | 4,052 | $ 0 | 4,052 | 0 | 0 | 0 |
Liability for cash settlement stock-based compensation awards, shares | 27,943 | |||||
Deferred tax benefit arising from acquisition of noncontrolling interest in partnership | 48,037 | $ 0 | 48,037 | 0 | 0 | 0 |
Ending Balance at Dec. 31, 2016 | $ 2,800,804 | $ 794 | $ 127,536 | $ 2,981,777 | $ (317,041) | $ 7,738 |
Ending Balance (in shares) at Dec. 31, 2016 | 79,402,505 | 79,402,505 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Net income attributable to redeemable noncontrolling interests | $ 48,760 | $ 43,588 | $ 38,741 |
Foreign currency translation gain (loss) attributable to Redeemable noncontrolling interests | (2,652) | (4,790) | (4,080) |
Unrealized gain (loss) from foreign currency hedging activities, (tax benefit) tax | (33) | 153 | (155) |
Unrealized investment gain (loss), tax benefit (tax) | 0 | 0 | (250) |
Pension adjustment gain (loss), tax benefit (tax) | (548) | 1,008 | (2,781) |
Stock issued upon exercise of stock options, tax benefit | $ 23,392 | $ 20,802 | $ 11,161 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 556,395 | $ 523,427 | $ 505,436 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 169,780 | 159,127 | 152,238 |
Stock-based compensation expense | 58,246 | 44,614 | 45,876 |
Provision for losses on trade and other accounts receivable | 2,647 | 3,184 | 4,619 |
Provision for (benefit from) deferred income taxes | (37,066) | (6,241) | (1,092) |
Equity in earnings of affiliates | (18,518) | (14,060) | (11,734) |
Distributions from equity affiliates | 20,351 | 18,029 | 15,727 |
Changes in unrecognized tax benefits | 6,997 | 11,847 | 22,597 |
Other | 11,611 | 7,549 | 3,303 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (1,904) | (120,001) | (81,441) |
Inventories | (104,787) | (194,869) | (71,899) |
Other current assets | (22,657) | (58,376) | (40,407) |
Accounts payable and accrued expenses | (25,634) | 212,611 | 49,281 |
Net cash provided by (used in) operating activities | 615,461 | 586,841 | 592,504 |
Cash flows from investing activities: | |||
Purchases of fixed assets | (70,179) | (71,684) | (82,116) |
Payments related to equity investments and business acquisitions, net of cash acquired | (228,575) | (171,861) | (424,283) |
Proceeds from sales of available-for-sale securities | 0 | 20 | 0 |
Proceeds from maturities of available-for-sale securities | 0 | 0 | 3,250 |
Other | (17,668) | (16,506) | (13,490) |
Net cash provided by (used in) investing activities | (316,422) | (260,031) | (516,639) |
Cash flows from financing activities: | |||
Proceeds from (repayments of) bank borrowings | 98,748 | 145,173 | 152,641 |
Proceeds from issuance of long-term debt | 260,799 | 135,000 | 314,787 |
Debt issuance costs | (233) | (150) | (687) |
Principal payments for long-term debt | (15,381) | (201,203) | (228,407) |
Proceeds from issuance of stock upon exercise of stock options | 11,404 | 14,870 | 31,491 |
Payments for repurchases of common stock | (550,024) | (299,852) | (299,989) |
Excess tax benefits related to stock-based compensation | (463) | 2,199 | 5,886 |
Distributions to noncontrolling shareholders | (32,350) | (33,301) | (24,986) |
Acquisitions of noncontrolling interests in subsidiaries | (72,729) | (82,107) | (105,383) |
Net cash provided by (used in) financing activities | (300,229) | (319,371) | (154,647) |
Effect of exchange rate changes on cash and cash equivalents | (8,515) | (24,827) | (20,360) |
Net change in cash and cash equivalents | (9,705) | (17,388) | (99,142) |
Cash and cash equivalents, beginning of period | 72,086 | 89,474 | 188,616 |
Cash and cash equivalents, end of period | $ 62,381 | $ 72,086 | $ 89,474 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 – Significant Accounting Policies Nature of Operations We dis tribute health care products and services primarily to office-based health care practitioners with operations or affiliates in the United States, Australia, Austria, Belgium, Brazil, Canada, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong SAR, Iceland, Ireland, Israel, Italy, Japan, Luxembourg, Malaysia, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, South Africa, Spain, Sweden, Switzerland, Thailand and the United Kingdom. Principles of Consolidation Our consolidated financial statements include the accounts of Henry Schein, Inc. and all of our controlled subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated affiliates, which are greater than or equal to 20% and less than or equal to 50% owned or investments in unconsolidated affiliates of less than 20% in which we have the ability to influence the operating or financial decisions, are accounted for under the equity method. See Note 6 for accounting treatment of Redeemable noncontrolling interests. Certain prior period amounts have been reclassified to conform to the current period presentation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fiscal Year We report our results of operations and cash flows on a 52 -53 week basis ending on the last Saturday of December. The year ended December 31, 2016 consisted of 53 weeks, and the years ended December 26, 2015 and December 27, 2014 consisted of 52 weeks. Revenue Recognition We generate revenue from the sale of dental, animal health and medical consumable products, as well as equipment, software products and services and other sources. Provisions for discounts, rebates to customers, customer returns and other contra-revenue adjustments are recorded based upon historical data and estimates and are provided for in the period in which the related sales are recognized. Revenue derived from the sale of consumable products is recognized when products are shipped to customers. Such sales typically entail high- volume, low-dollar orders shipped using third-party common carriers. We believe that the shipment date is the most appropriate point in time indicating the completion of the earnings process because we have no post-shipment obligations, the product price is fixed and determinable, collection of the resulting receivable is reasonably assured and product returns are reasonably estimable. Revenue derived from the sale of equipment is recognized when products are delivered to customers. Such sales typically entail scheduled deliveries of large equipment primarily by equipment service technicians. Some equipment sales require minimal installation, which is typically completed at the time of delivery. Revenue derived from the sale of software products is recognized when products are shipped to customers. Such software is general ly installed by customers and does not require extensive training due to the nature of its design. Revenue derived from post-contract customer support for software, including annual support and/or training, is recognized over the period in which the servic es are provided. Revenue derived from multiple element arrangements, and the related deferral of such revenue (which is insignificant to our financial statements), is recognized as follows. When we sell software products together with related services (i. e., training and technical support) we allocate revenue to the delivered elements using the residual method, based upon vendor-specific objective evidence (“VSOE”) of the fair value of the undelivered elements, or defer it until such time as vendor-specifi c evidence of fair value is obtained. Multiple element arrangements that include elements that are not considered software consist primarily of equipment and the related installation service. We allocate revenue for such arrangements based on the relative selling prices of the elements applying the following hierarchy: first VSOE, then third-party evidence (“TPE”) of selling price if VSOE is not available, and finally our estimate of the selling price if neither VSOE nor TPE is available. VSOE exists when we sell the deliverables separately and represents the actual price charged by us for each deliverable. Estimated selling price reflects our best estimate of what the selling prices of each deliverable would be if it were sold regularly on a standalone bas is taking into consideration the cost structure of our business, technical skill required, customer location and other market conditions. Each element that has standalone value is accounted for as a separate unit of accounting. Revenue allocated to each un it of accounting is recognized when the service is provided or the product is delivered. Revenue derived from other sources including freight charges, equipment repairs and financial services, is recognized when the related product revenue is recognized o r when the services are provided. Cash and Cash Equivalents We consider all highly liquid short-term investments with an original maturity of three months or less to be cash equivalents. Due to the short-term maturity of such investments, the carrying amounts are a reasonable estimate of fair value. Outstanding checks in excess of funds on deposit of $ 98.5 mill ion and $ 54.4 million, primarily related to payments for inventory, were classified as accounts payable as of December 31, 2016 and December 26, 2015 . Acc ounts Receivable and Reserves The carrying amount of accounts receivable is reduced by a valuation allowance that reflects our best estimate of the amounts that will not be collected. The reserve for accounts receivable is comprised of allowance for doubtful accounts and sales returns. In addition to reviewing delinquent accounts receivable, we consider many factors in estimating our reserve, including historical data, experience, customer types, credit worthiness and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other fac tors expected to affect collecta bility. Inventories and Reserves Inventories consist primarily of finished goods and are valued at the lower of cost or market. Cost is determined by the first-in, first-out method for merchandise or actual cost for large equipment and high tech equipment. In accordance with our policy for inventory valuation, we consider many factors including the condition and salability of the inventory, historical sales, forecasted sales and market and economic t rends. From time to time, we adjust our assumptions for anticipated changes in any of these or other factors expected to affect the value of inventory. Direct Shipping and Handling Costs Freight and other direct shipping costs are included in cost of sales. Direct handling costs, which represent primarily direct compensation costs of employees who pick, pack and otherwise prepare, if necessary, merchandise for shipment to our customers are reflected in selling, general and administrative expenses. Direct shipping and handling costs were $ 86.2 million, $ 78.7 million and $ 78.4 million for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 . Adve rtising and Promotional Costs We generally expense advertising and promotional costs as incurred. Total advertising and promotional expenses were $ 18.4 million, $ 19.2 million and $ 18.4 million for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 . Additionally, advertising and promotional costs incurred in connection with direct marketing, including product catalogs and printed material, are deferred and amortized on a straight-line basis over the period which is benefited, generally not exceeding one year. As of December 31, 2016 and December 26, 2015 , we had $ 3.5 million and $ 4.4 million of deferred direct marketing expenses included in other current assets. Supplier Rebates Supplier rebates are included as a reduction of cost of sales and are recognized over the period they are earned. The factors we consider in estimating supplier rebate accruals include forecasted inventory purchases and sales, in conjunction with supplier rebate contract terms, which generally provide for increasing rebates based on either increased purchase or sales volume. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation or amortization. Depreciation is computed primarily under the straight-line method (see Note 2 - Property and Equipment, Net for estimated useful lives). Amortization of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term. Capitalized software costs consist of costs to purchase and develop software. Costs incurred during the application development stage for software bought and further customized by outside suppliers for our use and software developed by a supplier for our proprietary use are capitalized. Costs incurred for our own personnel who are directly associated with software development are capitalized. Income Taxes We account for income taxes under an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in tax laws or rates. The effect on defe rred income tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period that includes the enactment date. We file a consolidated U.S. federal income tax return with our 80% or greater owned U.S. subsidiaries . Foreign Currency T ranslation and Transactions The financial position and results of operations of our foreign subsidiaries are determined using local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each year-end. Income statement accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from the use of differing exchange rates from period to period are included in Accumulated other comprehensive income in stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in earnings. Risk Management and De rivative Financial Instruments We use derivative instruments to minimize our exposure to fluctuations in foreign currency exchange rates. Our objective is to manage the impact that foreign currency exchange rate fluctuations could have on recognized asset and liability fair values, earnings and cash flows. Our risk management policy requires that derivative contracts used as hedges be effective at reducing the risks associated with the exposure being hedged and be designated as a hedge at the inception of the contract. We do not enter into derivative instruments for speculative purposes. Our derivative instruments primarily include foreign currency forward agreements related to certain intercompany loans and certain forecasted inventory purchase commitments with foreign suppliers. Our foreign currency forward agreements related to forecasted inventory purchase commitments are designated as cash flow hedges. Our foreign currency forward agreements related to foreign currency balance sheet exposure provide economic hedges but are not designated as hedges for accounting purposes. For agreements not designated as hedges, changes in the value of the derivative, along with the transaction gain or loss on the hedged item, are recorded in earnings. For cash flow hedges, the effective portion of the changes in the fair value of the derivative, along with any gain or loss on the hedged item, is recorded as a component of Accumulated other comprehensive income in stockholders’ equity and subsequently reclassified into earnings in the period(s) during which the hedged transaction affects earnings. We classify the cash flows related to our hedging activities in the same category on our consolidated statements of cash flows as the cash flows related to the hedged item. Acquisitions The net assets of businesses purchased are recorded at their fair value at the acquisition date and our consolidated financial statements include their results of operations from that date. Any excess of acquisition consideration over the fair value of id entifiable net assets acquired is recorded as goodwill. The major classes of assets and liabilities that we generally allocate purchase price to, excluding goodwill, include identifiable intangible assets (i.e., trademarks and trade names, customer relati onships and lists and non-compete agreements), property, plant and equipment, deferred taxes and other current and long-term assets and liabilities. The estimated fair v alue of identifiable intangible assets is based on critical estimates, judgments and a ssumptions derived from: analysis of market conditions; discount rate; discounted cash f lows; customer retention rates; and estimated useful lives. Some prior owners of such acquired subsidiaries are eligible to receive additional purchase price cash cons ideration if cert ain financial targets are met. For the year s ended December 31, 2016 , December 26, 2015 and December 27, 2014 , there were no material adjustments recorded in our consolidated statement of income relating to changes in estimated conti ngent purchase price liabilities. Redeemable Noncontrolling Interests Some minority shareholders in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. Their interests in these subsidiaries are classified outside permanent equity on our consolidated balance sheets and are carried at the estimated redemption amounts. The redemption amounts have been estimated based on expected future earnings and cash flow and, if such earnings and cash flow are not achieved, the value of the redeemable noncontrolling interests might be impacted . Changes in the estimated redemption amounts of the noncontrolling interests subject to put options are reflected at each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments do not impact the calculation of earnings per share. Goodwill and Other Indefinite-Lived Intangible Assets Goodwill and other indefinite-lived intangible assets (primarily trademarks) are not amortized, but are subject to impairment analysis at least once annually. Such impairment analyses for goodwill require a comparison of the fair value to the carrying value of reporting units. We regard our reporting units to be our operating segments: health care distribution (global dental, animal health and medical) and technology and value-added services. Good will was allocated to such reporting units, for the purposes of preparing our impairment analyses, based on a specific identification basis. For the year s ended December 31, 2016 and December 26, 2015 , we tested goodwill for impairment using a quantitative analysis consisting o f a two-step approach. The first step of our quantitative analysis consists of a comparison of the carrying value of our reporting units, including goodwill, to the estimated fair value of our reporting units using a discounted cash flow methodology. If step one results in the carrying value of the reporting unit exceeding the fair value of such reporting unit, we would then proceed to step two which would require us to calculate the amount of impairment loss, if any, that we would record for such reporti ng unit. The calculation of the impairment loss in step two would be equivalent to the reporting unit ’ s carrying value of goodwill less the implied fair value of such goodwill. Our use of a discounted cash flow methodology includes estimates of future revenue based upon budget projections and growth rates which take into account estimated inflation rates. We also develop estimates for future levels of gross and operating profits and projected capital expenditures. Our methodology also includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. The estimates that we use in our discounted cash flow methodology involve many assumptions by management that are based upon future growth projections. For the year ended December 27, 2014 , we tested goodwill impairment under the provisions of Accounting Standards Update 2011-08, “Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment,” which allowed us to use quali tative factors to determine whether it is more likely than not that the fair values of our reporting units are less than their carrying values. The factors that we considered in developing our qualitative assessment included: Macroeconomic conditions con sisting of the overall sales growth of our business and the overall sales growth of each of our operating segments. We also consider our growth in market share in the markets in which we compete; Credit markets and our ability to access debt facilities a t favorable terms; Key personnel and management expertise, as well as our growth strategies for the next several years; and Our expectations of selling or disposing all, or a portion, of a reporting unit. Our impairment analysis for indefinite-lived intangibles consists of a comparison of the fair value to the carrying value of the assets. This comparison is made based on a review of historical, current and forecasted sales and gross profit levels, as well as a review of any factors that may indicate potential impairment. For indefinite-lived intangible assets, a present value technique, such as estimates of future cash flows, is utilized. We assessed the potential impairment of goodwill and other indefinite-lived intangible assets annually (at the beginning of our fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. S ome factors we consider important that could trigger an interim impairment review include: sign ificant underperformance relative to expected historical or projected future operating results; significant changes in the manner of our use of acquired assets or the strategy for our overall business (e.g., decision to divest a business); or significant negative industry or economic trends. If we determine through the impairment review process that goodwill or other indefinite-lived intangible assets are impaired, we record an impairment charge in our consolidated statements of income. For the year s en ded December 31, 2016 , December 26, 2015 and December 27, 2014 , the results of our goodwill and intangible impairment analysis did not result in any impairments. Long-Lived Assets Long-lived assets, other than goodwill and other indefinite-lived intangibles, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows to be derived from such assets. Definite-lived intangible assets primarily consist of non-compete agreements, trademarks, trade names, customer lists, customer relationshi ps and intellectual property. For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and the estimated fair value. When an impairment exists, the related assets are written down to fair value. Cost of Sales The primary components of cost of sales include the cost of the product (net of purchase discounts, supplier chargebacks and rebates) and inbound and outbound freight charges. Costs related to purchasing, receiving, inspections, warehousing, internal inventory transfers and other costs of our distribution network are included in selling, general and administrative expenses along with other operating costs. As a result of differ ent practices of categorizing costs associated with distribution networks throughout our industry, our gross margins may not necessarily be comparable to other distribution companies. Total distribution network costs were $ 84.4 million, $ 70.4 million and $ 64.5 million for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 . Comprehensive Income Comprehensive income includes certain gains and losses that, under accounting principles generally accepted in the United States, are excluded from net income as such amounts are recorded directly as an adjustment to stockholders’ equity. Our comprehensive income is primarily comprised of net income, foreign currency translation gain (loss), unrealized gain (loss) on foreign currency hedging activities, unrealized investment gain (loss) and pension adjustment gain (loss). Accounting Pronouncements Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued A ccounting S tandards U pdate (“ASU”) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs be reported in the balance sheet as a direct deduction from the face amount of the related liability, consistent with the pr esentation of debt discounts. Further, ASU 2015-03 requires the amortization of debt issuance costs to be reported as interest expense. Similarly, debt issuance costs and any discount or premium are considered in the aggregate when determining the effect ive interest rate on the debt. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. ASU 2015-03 must be applied retrospectively. Entities may choose to adopt the new requirements as of an earlier date for financial statements that have not been previously issued. The adoption of this ASU during 2016 did not have a material impact on our consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Simplifyin g the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 removes the previous requirement for an acquiring company to restate prior period financial results due to measurement-period adjustments. ASU 2015-16 requires that an acqu irer recognize provisional amounts that are identified during the measurement-period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 also requires presentation of the amount recorded in current period earnings by line i tem, either on the face of the income statement or within the notes to financial statements, which would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015 -16 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The guidance is to be applied prospectively to adjustments to provisional amounts that occur after the effective date o f the guidance. The adoption of this ASU during 2016 did not have a material impact on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17 (Topic 740), “ Balance Sheet Classification of Deferred Taxes ” (“ASU 2015-17”) . A SU 2015-17 requires deferred tax liabilities and assets to be classified as noncurrent in the Consolidated Balance Sheet. The standard will be effective for financial statements issued for annual periods beginning after December 15, 2016, and interim perio ds within those annual periods. Early adoption is permitted for financial statements that have not been previously issued. The ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. T he Company elected to early adopt ASU 2015-17 prospectively in the third quarter of 2016. As a result, all deferred tax assets and liabilities have been presented as noncurrent on the consolidated balance sheet as of December 31, 2016 . There was no impact on our results of operations as a result of the adoption of ASU 2015-17 and prior periods have not been adjusted. Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under accounting principles generally accepted in United States (“U.S. GAAP”). The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to c ustomers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be require d within the revenue recognition process than are required under existing U.S. GAAP. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers” (“ASU 2015-14”), which deferred the effective date by one year to December 15, 201 7 for interim and annual reporting periods beginning after that date. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. When effective, ASU 2014-09 will use either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients; or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Currently, we are reviewing our various revenue streams within our two reportable segments: (i) health care distribution and (ii) technology and value-added services. We are gathering data to quantify the amount of sales by type of revenue stream. Concurrently, through the use of various data gathering methods, we are categorizing the types of sales for our b usiness units for the purpose of comparing how we currently recognize revenue for the purpose of quantifying the impact, if any, that this ASU will have on our cons olidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842) (“ASU 2016-02”). ASU 2016-02 contains guidance on accounting for leases and requires that most lease assets and liabilities and the associated rights and obligations be recognized on the Company’s balance sheet. ASU 2016-02 focuses on lease a ssets and lease liabilities by lessees classified as operating leases under previous generally accepted accounting principles. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. ASU 2016-02 will require disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. The standard which requires the use of a modified retrospective approach will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. We are currently in the early stages of evaluating the impact of ASU 2016-02 on our consolidated financial statements. In March 2016, the FASB iss ued ASU No. 2016-09, “Stock Compensation” (Topic 718) (“ASU 2016-09”). ASU 2016-09 contains amended guidance for share-based payment accounting. We will adopt the provisions of this standard during the first quarter of 2017. The impact of ASU 2016-09 to our consolidated financial statements relating to our accounting for income taxes will require us to record all excess tax benefits and deficiencies as a component of income tax expense using the prospective method beginning as of January 1, 2017. Prio r to the implementation of this ASU, excess tax benefits were recorded as a component of additional paid in capital and tax deficiencies were recognized either as an offset to accumulated excess tax benefits, if any, or in the income statement. In addit ion, the ASU clarifies the classification of certain share based payment activities within the statements of cash flow. We have elected to prospectively present the amount of excess tax benefits related to stock compensation as a component of cash flow fr om operating activities. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which requires the measurement and recognition of expected credit losses for fi nancial assets held at amortized cost. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. This ASU is required to be adopted using the modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance of this ASU is effective. Based upon the level and makeup of o ur financial asset portfolio, past loan loss activity and current known activity regarding our outstanding loans, we do not expect that this ASU will have a material impact on the results of our consolidated financial statements. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 2 – Property and Equipment, Net P roperty and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed primarily under th e straight-line method over the estimated useful li fe . Depreciation of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term. Property and equipment , including related estimated useful lives, consisted of the following: December 31, December 26, 2016 2015 Land $ 19,438 $ 18,762 Buildings and permanent improvements 127,097 117,674 Leasehold improvements 95,048 89,766 Machinery and warehouse equipment 121,395 117,068 Furniture, fixtures and other 129,444 114,304 Computer equipment and software 372,322 339,006 864,744 796,580 Less accumulated depreciation (530,838) (478,104) Property and equipment, net $ 333,906 $ 318,476 Estimated Useful Lives (in years) Buildings and permanent improvements 40 Machinery and warehouse equipment 5-10 Furniture, fixtures and other 3-10 Computer equipment and software 3-10 Property and equipment related depreciation expense for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 was $ 63.8 million, $ 60.2 million and $ 57.6 million. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, Net | Note 3 – Goodwill and Other Intangibles, Net The changes in the carrying amount of goodwill for the years ended December 31, 2016 and December 26, 2015 were as follows: Health Care Distribution Technology and Value-Added Services Total Balance as of December 27, 2014 $ 1,710,554 $ 173,569 $ 1,884,123 Adjustments to goodwill: Acquisitions 66,070 5,464 71,534 Foreign currency translation (34,602) (13,462) (48,064) Balance as of December 26, 2015 1,742,022 165,571 1,907,593 Adjustments to goodwill: Acquisitions 116,640 29,165 145,805 Foreign currency translation (27,127) (6,531) (33,658) Balance as of December 31, 2016 $ 1,831,535 $ 188,205 $ 2,019,740 Other intangible assets consisted of the following: December 31, 2016 December 26, 2015 Accumulated Accumulated Cost Amortization Net Cost Amortization Net Non-compete agreements $ 40,783 $ (6,927) $ 33,856 $ 40,898 $ (10,131) $ 30,767 Trademarks / trade names - definite lived 136,211 (55,124) 81,087 114,271 (41,275) 72,996 Trademarks / trade names - indefinite lived 2,848 - 2,848 2,963 - 2,963 Customer relationships and lists 713,437 (288,417) 425,020 638,276 (236,485) 401,791 Other 134,254 (55,885) 78,369 127,532 (43,078) 84,454 Total $ 1,027,533 $ (406,353) $ 621,180 $ 923,940 $ (330,969) $ 592,971 Non-compete agreements represent amounts paid primarily to key employees and prior owners of acquired businesses, as well as certain sales persons, in exchange for placing restrictions on their ability to pose a competitive risk to us. Such amounts are amortized, on a straight-line basis over the respective non-compete period, which generally commences upon termination of employment or separation from us. The weighted-average non-compete period for agreements currently being amortized was approximately 4.2 years as of December 31, 2016 . Trademarks, trade names, customer lists and customer relationships were established through business acquisitions. Definite-lived trademarks and trade names are amortized on a straight-line basis over a weighted-average period of approximately 7.8 years as of December 31, 2016 . Customer relationships and customer lists are definite-lived intangible assets that are amortized on a straight-line basis over a weighted-average period of approximately 10.8 years as of December 31, 2016 . Amortization expense related to definite-lived intangible assets for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 was $ 97.2 million, $ 91.9 million and $ 89.6 million. The annual amortization expense expected to be recorded for existing intangibles assets for the years 2017 through 2021 is $ 104.9 million, $ 98.4 million, $ 91.1 million, $ 82.7 million and $ 71.2 million. |
Investments and Other
Investments and Other | 12 Months Ended |
Dec. 31, 2016 | |
Investments And Other [Abstract] | |
Investments and Other | Note 4 – Investments and Other Investments and other consisted of the following: December 31, December 26, 2016 2015 Investment in unconsolidated affiliates $ 299,249 $ 293,273 Non-current deferred foreign, state and local income taxes 16,685 58,249 Notes receivable (1) 27,492 27,509 Capitalized costs for internally generated software for resale 32,321 27,851 Distribution rights and exclusivity agreements, net of amortization 1,937 2,514 Acquisition related indemnification 51,294 32,828 Other long-term assets 13,812 12,376 Total $ 442,790 $ 454,600 (1) Long-term notes receivable carry interest rates ranging from 1.0% to 12.0% and are due in varying installments through December 31, 2030. Amortization expense related to other long-term assets for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 was $ 8.7 million, $ 7.0 million and $ 5.0 million. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 – Debt Bank Credit Lines On September 12, 2012, we entered into a new $ 500 million revolving credit agreement (the “Credit Agreement”) with a $ 200 million expansion feature, which was originally set to expire on September 12, 2017. On September 22, 2014, we extended the expiration date of the Credit Agreement to September 22, 2019. The interest rate is based on the USD LIBOR plus a spread based on our leverage ratio at the end of each financial reporting quarter. The Credit Agreement provides, among other things, that we are required to maintain maximum leverage ratios, and contains customary representations, warranties and affirmative covenants. The Credit Agreement also contains customary negative covenants, subject to negotiated exceptions on liens, indebtedness, significant corporate changes (including mergers), dispositions and certain restrictive agreements. A s of December 31, 2016 and December 26, 2015 , the borrowings outstanding on this revolving credit facility were $ 65.0 million and $40.0, respectively . As of December 31, 2016 and December 26, 2015 , there were $ 13.0 million and $ 11.4 million of letters of credit , respectively, provided to third parties under the credit facility. As of December 31, 2016 and December 26, 2015 , we had various other short-term bank credit lines available, of which $ 372.5 million and $ 288.6 million , respectively, was outstanding. At December 31, 2016 and December 26, 2015 , borrowings under all of our credit lines had a weighted average interest rate of 1.61 % and 1.21 %, respectively . Private Placement Facilities On August 10, 2010, we entered into $ 400 million private placement facilities with two insurance companies. On April 30, 2012, we increased our available credit facilities by $ 375 million by entering into an additional agreement with one insurance company and amending our existing agreements with two insurance companies. On September 22, 2014, we increased our available private placement facilities by $ 200 million to a total facility amount of $ 975 million, and extende d the expiration date to September 22, 2017 . These facilities are available on an uncommitted basis at fixed rate economic terms to be agreed upon at the time of issuance, from time to time through September 22, 2017. The facilities allow us to issue sen ior promissory notes to the lenders at a fixed rate based on an agreed upon spread over applicable treasury notes at the time of issuance. The term of each possible issuance will be selected by us and can range from five to 15 years (with an average life no longer than 12 years). The proceeds of any issuances under the facilities will be used for general corporate purposes, including working capital and capital expenditures, to refinance existing indebtedness and/or to fund potential acquisitions. The agr eements provide, among other things, that we maintain certain maximum leverage ratios, and contain restrictions relating to subsidiary indebtedness, liens, affiliate transactions, disposal of assets and certain changes in ownership. These facilities conta in make-whole provisions in the event that we pay off the facilities prior to the applicable due dates. The components of our private placement facility borrowings as of December 31, 2016 are presented in the following table: Amount of Borrowing Borrowing Date of Borrowing Outstanding Rate Due Date September 2, 2010 $ 100,000 3.79 % September 2, 2020 January 20, 2012 50,000 3.45 January 20, 2024 January 20, 2012 (1) 42,857 3.09 January 20, 2022 December 24, 2012 50,000 3.00 December 24, 2024 June 2, 2014 100,000 3.19 June 2, 2021 $ 342,857 (1) Annual repayments of approximately $7.1 million for this borrowing commenced on January 20, 2016. U.S. Trade Accounts Receivable Securitization On April 17, 2013, we entered into a facility agreement of up to $ 300 million with a bank, as agent, based on the securitization of our U.S. trade accounts receivable. This facility allowed us to replace public debt (approximately $ 220 million), which had a higher interest rate at Henry Schein Animal Health (formerly Butle r Schein Animal Health) (“HSAH”) during February 2013 and provided funding for working capital and general corporate purposes. The financing was structured as an asset-backed securitization program with pricing committed for up to three years. On April 1 7, 2015, we extended the expiration date of this facility agreement to April 15, 2018 , and on June 1, 2016, we extended the expiration date of this facility agreement to April 29, 2019 and increased the purchase limit under the facility from $300 million t o $ 350 million . The borrowings outstanding under this securitization facility were $350.0 million and $ 90 .0 million as of December 31, 2016 and December 26, 2015 , respectively . At December 31, 2016 , the interest rate on borrowings under this facility was based on the asset-backed commercial paper rate of 101 basis points plus 75 basis points, for a combined rate of 1.76 %. At December 26, 2015 , the interest rate on borrowings under this facility was based on the asset-backed commercial paper rate of 4 0 basis points plus 75 basis points, for a combined rate of 1 . 15 %. We are required to pay a commitment fee of 30 basis points on the daily balance of the unused portion of the facility if our usage is greater than or equal to 50% of the facility limit or a commitment fee of 35 basis points on the daily balance of the unused portion of the facility if our usage is less than 50% of the facility limit. Borrowings under this facility are presented as a component of Long-term debt within our consolidated balan ce sheet. Long-term debt Long-term debt consisted of the following: December 31, December 26, 2016 2015 Private placement facilities $ 342,857 $ 350,000 U.S. trade accounts receivable securitization 350,000 90,000 Notes payable to banks at a weighted-average interest rate of 21.37% and 8.83% 47,957 5 Various collateralized and uncollateralized loans payable with interest, in varying installments through 2023 at interest rates ranging from 2.56% to 12.9% 35,150 38,215 Capital lease obligations (see Note 17) 5,416 2,863 Total 781,380 481,083 Less current maturities (65,923) (17,331) Total long-term debt $ 715,457 $ 463,752 As of December 31, 2016 , the aggregate amounts of long-ter m debt, including capital lease obligations , maturing in each of the next five years and thereafter are as follows: 2017 $ 65,923 2018 32,184 2019 358,568 2020 107,904 2021 107,867 Thereafter 108,934 Total $ 781,380 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2016 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Noncontrolling Interests | Note 6 – Redeemable Noncontrolling Interests Some minority shareholders in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. Accounting Standards Codification (“ASC”) Topic 480-10 is applicable for noncontrolling interests where we are or may be required to purchase all or a portion of the outstanding interest in a consolidated subsidiary from the noncontrolling interest holder under the terms of a put option contained in contractual agreements. The components of the change in the Redeemable noncontrolling interests for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 are presented in the following table: December 31, December 26, December 27, 2016 2015 2014 Balance, beginning of period $ 542,194 $ 564,527 $ 497,539 Decrease in redeemable noncontrolling interests due to redemptions (72,729) (82,563) (105,383) Increase in redeemable noncontrolling interests due to business acquisitions 58,172 18,936 120,220 Net income attributable to redeemable noncontrolling interests 48,760 43,588 38,741 Dividends declared (32,973) (32,706) (23,346) Effect of foreign currency translation loss attributable to redeemable noncontrolling interests (2,652) (4,790) (4,080) Change in fair value of redeemable securities 66,864 35,202 40,836 Balance, end of period $ 607,636 $ 542,194 $ 564,527 Changes in the estimated redemption amounts of the noncontrolling interests subject to put options are adjusted at each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments do not impact the calculation of earnings per share. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |
Comprehensive Income | Note 7 – Comprehensive Income Comprehensive income includes certain gains and losses that, under U.S. GAAP, are excluded from net income as such amounts are recorded directly as an adjustment to stockholders’ equity. Our comprehensive income is primarily comprised of net income, foreign currency translation gain (loss), unrealized gain (loss) on foreign currency hedging activities, unrealized investment gain (loss) and pension adjustment gain (loss). The following table summarizes our Accumulated other comprehensive income, net of applicable taxes as of: December 31, December 26, December 27, 2016 2015 2014 Attributable to Redeemable noncontrolling interests: Foreign currency translation adjustment $ (13,025) $ (10,373) $ (5,583) Attributable to noncontrolling interests: Foreign currency translation adjustment $ (113) $ (76) $ (36) Attributable to Henry Schein, Inc.: Foreign currency translation loss $ (296,212) $ (200,499) $ (71,294) Unrealized gain (loss) from foreign currency hedging activities (53) 939 (1,055) Unrealized investment loss - (2) (136) Pension adjustment loss (20,776) (20,377) (22,647) Accumulated other comprehensive loss $ (317,041) $ (219,939) $ (95,132) Total Accumulated other comprehensive loss $ (330,179) $ (230,388) $ (100,751) The following table summarizes the components of comprehensive income, net of applicable taxes as follows: December 31, December 26, December 27, 2016 2015 2014 Net income $ 556,395 $ 523,427 $ 505,436 Foreign currency translation loss (98,402) (134,035) (157,698) Tax effect - - - Foreign currency translation loss (98,402) (134,035) (157,698) Unrealized gain (loss) from foreign currency hedging activities (1,025) 2,147 (2,492) Tax effect 33 (153) 155 Unrealized gain (loss) from foreign currency hedging activities (992) 1,994 (2,337) Unrealized investment gain 2 134 629 Tax effect - - (250) Unrealized investment gain 2 134 379 Pension adjustment gain (loss) (947) 3,278 (10,222) Tax effect 548 (1,008) 2,781 Pension adjustment gain (loss) (399) 2,270 (7,441) Comprehensive income $ 456,604 $ 393,790 $ 338,339 During the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 , we recognized, as a component of our comprehensive income, a foreign currency translation loss of $ (98.4) million, $ (134.0) million and $ (157.7) million , respectively, due to changes in foreign exchange rates from the beginning of the period to the end of the period . Our financial statements are denominated in the U.S. Dollar currency. Fluctuations in the v alue of foreign currencies as compared to the U.S. Dollar may have a significant impact on our comprehensive income. The foreign currency translation gain (loss) during the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 was im pacted by changes in foreign currency exchange rates as follows: Foreign Currency Translation Gain (Loss) for the Year Ended FX Rate in USD December 31, December 31, December 26, Currency 2016 2016 2015 British Pound $ (53,723) 1.23 1.49 Euro (41,245) 1.05 1.10 Polish Zloty (3,849) 0.24 0.26 Canadian Dollar 3,345 0.74 0.72 Brazilian Real 2,856 0.31 0.25 Swiss Franc (2,365) 0.98 1.01 Australian Dollar (562) 0.72 0.73 All other currencies (2,859) Total $ (98,402) Foreign Currency Translation Gain (Loss) for the Year Ended FX Rate in USD December 26, December 26, December 27, Currency 2015 2015 2014 Euro $ (76,754) 1.10 1.22 Australian Dollar (19,864) 0.73 0.81 British Pound (15,404) 1.49 1.56 Canadian Dollar (10,071) 0.72 0.86 Brazilian Real (5,942) 0.25 0.37 Polish Zloty (3,281) 0.26 0.28 Swiss Franc 928 1.01 1.01 All other currencies (3,647) Total $ (134,035) Foreign Currency Translation Loss for the Year Ended FX Rate in USD December 27, December 27, December 28, Currency 2014 2014 2013 Euro $ (93,882) 1.22 1.38 Australian Dollar (15,710) 0.81 0.89 British Pound (19,150) 1.56 1.65 Canadian Dollar (6,891) 0.86 0.94 Polish Zloty (7,135) 0.28 0.33 Swiss Franc (7,154) 1.01 1.12 All other currencies (7,776) Total $ (157,698) The following table summarizes our total comprehensive income, net of applicable taxes as follows: December 31, December 26, December 27, 2016 2015 2014 Comprehensive income attributable to Henry Schein, Inc. $ 409,676 $ 354,251 $ 303,096 Comprehensive income attributable to noncontrolling interests 820 741 582 Comprehensive income attributable to Redeemable noncontrolling interests 46,108 38,798 34,661 Comprehensive income $ 456,604 $ 393,790 $ 338,339 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 – Fair Value Measurements ASC Topic 820 “Fair Value Measurements and Disclosures” (“ASC Topic 820”) provides a framework for measuring fair value in generally accepted accounting principles. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumption s developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). T he fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC Topic 820 are described as follows: • Level 1— Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date . • Level 2— Inputs other than quoted p rices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabili ties in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means . • Level 3— Input s that are unobservable for the asset or liability . The following section describes the fair values of our financial instruments and the methodologies that we used to measure their fair value s. Investments and notes receivable There are no quoted market prices available for investments in unconsolidated affiliates and notes receivable; however, we believe the carrying amounts are a reasonable estimate of fair value . Debt The fair value of our debt (including bank credit lines) as of December 31, 2016 and December 26, 2015 was estimated at $ 1,218.9 million and $ 809.7 million, respectively. Factors that we considered when estimating the fair value of our debt include market conditions, prepayment and make-whole provisions, liquidity levels in the private placement market, variability in pricing from multiple lenders and term of debt. Derivative contracts Derivative contracts are valued using quoted market prices and significant other observable and unobservable inputs. We use derivative instruments to minimize our exposure to fluctuations in foreign currency exchange rates. Our derivative instruments primarily include foreign currency forward agreements related to intercompany loans and certain forecasted inventory purcha se commitments with suppliers. The fair values for the majority of our foreign currency derivative contracts are obtained by comparing our contract rate to a published forward price of the underlying market rates, which is based on market rates for compar able transactions and are classified within Level 2 of the fair value hierarchy. Redeemable noncontrolling interests Some minority shareholders in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership inte rest in those entities at fair value based on third-party valuations. The primary factor affecting the future value of redeemable noncontrolling interests is expected earnings and, if such earnings are not achieved, the value of the redeemable noncontroll ing interests might be impacted. The noncontrolling interests subject to put options are adjusted to their estimated redemption amounts each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments do not impact the calculation of earnings per share. The values for Redeemable noncontrolling interests are classified within Level 3 of the fair value hierarchy. The details of the changes in Redeemable noncontrolling interests are pre sented in Note 6. The following table presents our assets and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of December 31, 2016 and December 26, 2015 : December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Derivative contracts $ - $ 1,240 $ - $ 1,240 Total assets $ - $ 1,240 $ - $ 1,240 Liabilities: Derivative contracts $ - $ 931 $ - $ 931 Total liabilities $ - $ 931 $ - $ 931 Redeemable noncontrolling interests $ - $ - $ 607,636 $ 607,636 December 26, 2015 Level 1 Level 2 Level 3 Total Assets: Derivative contracts $ - $ 4,289 $ - $ 4,289 Total assets $ - $ 4,289 $ - $ 4,289 Liabilities: Derivative contracts $ - $ 2,477 $ - $ 2,477 Total liabilities $ - $ 2,477 $ - $ 2,477 Redeemable noncontrolling interests $ - $ - $ 542,194 $ 542,194 |
Business Acquisitions and Dives
Business Acquisitions and Divestiture | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations And Divestitures [Abstract] | |
Business Acquisitions and Divestiture | N ote 9 – Business Acquisitions and Divestiture Acquisitions The operating results of all acquisitions are reflected in our financial statements from their respective acquisition dates. On January 12, 2016, we announced that our U.S. animal health business, Henry Schein Animal Health, completed the purchase of an 80.1% interest in Vetstreet, Inc., a leading software as a service (SaaS) provider of marketing solutions and health information analytics to veterinary practices and animal health product manufacturers. Vetstreet had sales in 2015 of approximately $40 million. As a result of this acquisition, we recorded $17.9 million of initial goodwill. On February 3, 2016, we announced the completion of the acquisition of RxWorks, Inc., a leading provi der of veterinary practice management software primarily to customers in Australia, New Zealand, the United Kingdom, the Netherlands and other countries around the world. The company had sales for the 12 months ended June 30, 2015 of approximately $7 milli on. As a result of this acquisition, we recorded $4.2 million of initial goodwill. On February 5, 2016 , we announced that we have entered into an agreement to acquire a majority ownership interest in Dental Cremer S.A., a distributor of dental supplies and equipment in Brazil. Headquartered in Blumenau, Brazil, Dental Cremer, which is the dental distribution business of Cremer S.A., had 2015 sales of approximat ely $70 million. On Decembe r 28, 2016 , we completed this transaction. As a result of this acquisition, we recorded $37.5 million of initial goodwill. On March 23, 2016, we announced that we entered into a definitive agreement with J. Morita Corp. to ex pand our presence in Japan. This transaction was completed on June 20, 2016 and, as a result, we own a 50% interest in One Piece Corp., a subsidiary of J. Morita, one of the world's largest manufacturers and distributors of dental equipment and supplies. One Piece Corp. had aggregate sales in fiscal 2015 of approximately $125 million. We completed certain other acquisitions d uring the year ended December 31, 2016 , which were immaterial to our financial statements individually and in the aggregate and res ulted in the recording of approximately $ 69.9 million of initial goodwill through preliminary purchase price allocations. Total acquisition transaction costs incurred in the year ended December 31, 2016 were immaterial to our financial results. On March 31, 2015, we completed the acquisition of scil animal care company GmbH (“scil”), a specialty distributor of animal health laboratory and imaging diagnostic products and services to veterinarians primarily in North America and Europe. scil ha d annual sales in 2014 of approximately $83 million. As a result of this acquisition, we recorded $3.5 million of initial goodwill. On July 10, 2015, we announced that, during the second quarter ended June 27, 2015, we made a 50% non-consolidating ownersh ip investment in Maravet S.A. (“Maravet”), an animal health distributor in Romania. Maravet is a privately held company with annual sales of approximately $23 million. On September 1, 2015, we announced the completion of the acquisition of an 85% interes t in Jorgen Kruuse A/S (“KRUUSE”), a leading distributor of veterinary supplies in Denmark, Norway and Sweden. KRUUSE had sales in 2014 of approximately $90 million. As a result of this acquisition, we recorded $20.7 million of initial goodwill. On Nove mber 30 , 2015, we completed the acquisition of Dental Trey (S.R.L.) (“ Dental Trey ”), a leading distributor of dental consumable merchandise and equipment in Italy . Dental Trey had sales for the 12 months ended June 30, 2015 of approximately $49 million . As a result of this acquisition, we recorded $8.5 million of initial goodwill. We completed certain other acquisitions during the year ended December 26, 2015, which were immaterial to our financial statements individually and in the aggregate and resulte d in the recording of approximately $ 27.1 million of initial goodwill through preliminary purchase price allocations. Total acquisition transaction costs incurred in the year ended December 26, 2015 were immaterial to our financial results. On December 30, 2013, we completed the acquisition of approximately 60% of the equity interest in BioHorizons, Inc., a U.S. - based manufacturer of advanced dental implants with annual revenues of approximately $115 million. Prior to completion of the acquisition, we f unded BioHorizons, Inc. $145 million, which was recorded as a long-term loan included in Investments and Other within our consolidated balance sheet at December 28, 2013. This long-term loan was subsequently recorded as an intercompany loan upon completio n of the acquisition and has been eliminated from our consolidated balance sheet as of December 27 , 2014. As a result of this acquisition, we recorded $143.7 million of initial goodwill. On February 3 , 2014, we completed the acquisition of 100% ownership of five businesses in three European countries from Arseus NV. The businesses combine for annual sales of approximately $97 million and include a dental practice management software company in France and distributors of dental products in France, the Net herlands and Belgium. As a result of this acquisition, we recorded $21.4 million of initial goodwill. On April 2, 2014, we completed our previously announced acquisition of an 80% ownership position in Medivet S.A., a privately held distributor of animal h ealth products and services in Poland. Medivet has annual sales of approximately $80 million. As a result of this acquisition, we recorded $ 18.7 million of initial goodwill. On June 30, 2014, we completed our previously announced acquisition by our U.S. Animal Health business, Butler Animal Health Supply LLC, together with our wholly-owned subsidiary, W.A. Butler Company, of a 60% ownership position in SmartPak Equine, LLC (“SmartPak”), a privately held provid er of equine supplements and horse supplies in the United States. SmartPak had sales of approximately $105 million in 2013. As a result of this acquisition, we recorded $ 59.7 million of initial goodwill. On November 2 0 , 2014, we entered into a long-term strategic agreement with Cardinal Health, Inc. Under the terms of the agreement, the physician office-focused commercial organization of Cardinal Health ’ s Medical segment was acquired and has been consolidated into the commercial organization of our m edi cal g roup. The physician office sales team and physician office distribution business of Cardinal Health ’ s m edical segment, with annual sales of more than $ 230 million, will be integrated into our m edical g roup. Additionally, w e committed to purchase Car dinal Health™ Brand products and utilize Cardinal Health as a primary source for various medical products. There was no goodwill recorded on this transaction. We completed certain other acquisitions during the year ended December 27, 2014 , which were immaterial to our financial statements individually and in the aggregate and resulted in the recording of approximately $ 16.4 million of initial goodwill through preliminary purchase price allocations. |
Plans of Restructuring
Plans of Restructuring | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Plans of Restructuring | N ote 10 – Plans of Restructuring On November 6, 2014, we announced a corporate initiative to rationalize our operations and provide expense efficiencies, which was expected to be completed by the end of fiscal 2015. This initiative originally planned for the elimination of approximately 2% to 3% of our workforce and the closing of certain facilities. We subsequently announced our plan to extend these restructuring activities through the end of 2016 to further implement cost-savings initiatives, which ultimately resulted in the elimination of approximately 900 positions, representing slightly more than 4% of our workforce. The total costs associated with the actions to date for this restructuring include $34.9 million pre-tax, which was recorded in fiscal 2015 and $45.9 million pre-tax, which has been recorded in fiscal 2016. The costs associated with this restructuring are included in a separate line item, “Restructuring costs” within our consolidated statements of income. As of December 31, 2016 our restructuring activities are complete and we do not expect to incur any additional restructuring charges in fiscal 2017. The following table shows the amounts expensed and paid for restructuring costs that were incurred during our 2016 , 2015 and 2014 fiscal years and the remaining accrued balance of restructuring costs as of December 31, 2016 , which is included in Accrued expenses: Other and Other liabilities within our consolidated balance sheet : Facility Severance Closing Costs Costs Other Total Balance, December 28, 2013 $ 227 $ 484 $ - $ 711 Provision - - - - Payments and other adjustments (107) (183) - (290) Balance, December 27, 2014 $ 120 $ 301 $ - $ 421 Provision 26,742 5,706 2,483 34,931 Payments and other adjustments (17,759) (3,856) (1,672) (23,287) Balance, December 26, 2015 $ 9,103 $ 2,151 $ 811 $ 12,065 Provision 40,728 3,587 1,576 45,891 Payments and other adjustments (27,477) (3,284) (1,492) (32,253) Balance, December 31, 2016 $ 22,354 $ 2,454 $ 895 $ 25,703 The following table shows , by reportable segment, the amounts expensed and paid for restructuring costs that were incurred during our 2016 , 2015 and 2014 fiscal years and the remaining accrued balance of restructuring costs as of December 31, 2016 : Technology and Health Care Value-Added Distribution Services Total Balance, December 28, 2013 $ 711 $ - $ 711 Provision - - - Payments and other adjustments (290) - (290) Balance, December 27, 2014 $ 421 $ - $ 421 Provision 33,889 1,042 34,931 Payments and other adjustments (22,248) (1,039) (23,287) Balance, December 26, 2015 $ 12,062 $ 3 $ 12,065 Provision 44,082 1,809 45,891 Payments and other adjustments (30,906) (1,347) (32,253) Balance, December 31, 2016 $ 25,238 $ 465 $ 25,703 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11 – Earnings Per Share Basic earnings per share is computed by dividing net income attributable to Henry Schein, Inc. by the weighted-average number of common shares outstanding for the period. Our diluted earnings per share is computed similarly to basic earnings per share, except that it reflects the effect of common shares issuable for presently unvested restricted stock and restricted stock units and upon exercise of stock options, using the treasury stock method in periods in which t hey have a dilutive effec t. A reconciliation of shares used in calculating earnings per basic and diluted share follows: Years Ended December 31, December 26, December 27, 2016 2015 2014 Basic 80,820 82,844 84,265 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 1,042 1,281 1,475 Diluted 81,862 84,125 85,740 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 – Income Taxes Income before taxes and equity in earnings of affiliates was as follows: Years ended December 31, December 26, December 27, 2016 2015 2014 Domestic $ 625,792 $ 591,320 $ 543,433 Foreign 130,043 129,438 165,879 Total $ 755,835 $ 720,758 $ 709,312 The provisions for income taxes were as follows: Years ended December 31, December 26, December 27, 2016 2015 2014 Current income tax expense: U.S. Federal $ 185,438 $ 162,948 $ 156,956 State and local 28,229 29,580 28,708 Foreign 41,357 25,104 31,038 Total current 255,024 217,632 216,702 Deferred income tax expense (benefit): U.S. Federal (18,090) (3,381) (2,389) State and local (4,809) 992 (2,682) Foreign (14,167) (3,852) 3,979 Total deferred (37,066) (6,241) (1,092) Total provision $ 217,958 $ 211,391 $ 215,610 The tax effects of temporary differences that give rise to our deferred income tax asset (liability) were as follows: Years Ended December 31, December 26, 2016 2015 Current deferred income tax asset (liability): Inventory, premium coupon redemptions and accounts receivable valuation allowances $ - $ 25,403 Uniform capitalization adjustments to inventories - 10,719 Other current assets - 15,645 Current deferred income tax asset (1) - 51,767 Non-current deferred income tax asset (liability): Inventory, premium coupon redemptions and accounts receivable valuation allowances 29,422 - Uniform capitalization adjustments to inventories 10,632 - Property and equipment (15,882) (10,035) Stock-based compensation 41,677 35,942 Intangibles amortization (142,678) (218,097) Other non-current asset (liability) 23,836 (19,377) Net operating losses of foreign subsidiaries 44,493 37,455 Total non-current deferred tax liability (8,500) (174,112) Valuation allowance for non-current deferred tax assets (2) (26,403) (20,501) Net non-current deferred tax liability (1) (34,903) (194,613) Net deferred income tax liability $ (34,903) $ (142,846) (1) Certain deferred tax amounts do not have a right of offset and are therefore reflected on a gross basis in non-current assets and liabilities in our consolidated balance sheets. (2) Primarily relates to operating losses of acquired subsidiaries, the benefits of which are uncertain. Any future reductions of such valuation allowances will be reflected as a reduction of income tax expense in accordance with the provisions of ASC Topic 805, “Business Combinations.” The assessment of the amount of value assigned to our deferred tax assets under the applicable accounting rules is judgmental. We are required to consider all available positive and negative evidence in evaluating the likelihood that we will be able to realize the benefit of our deferred tax assets in the future. Such evidence includes scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and the results of recent operations. Since this evaluation req uires consideration of events that may occur some years into the future, there is an element of judgment involved. Realization of our deferred tax assets is dependent on generating sufficient taxable income in future periods. We believe that it is more l ikely than not that future taxable income will be sufficient to allow us to recover substantially all of the value assigned to our deferred tax assets. However, if future events cause us to conclude that it is not more likely than not that we will be able to recover all of the value assigned to our deferred tax assets, we will be required to adjust our valuation allowance accordingly . During the third quarter of 2016, the Company elected to early adopt ASU No. 2015-17 (Topic 740), “ Balance Sheet Cla ssification of Deferred Taxes” , prospectively. As a result, all deferred tax assets and liabilities are presented as noncurrent on the consolidated balance sheet as of December 31, 2016. There was no impact on our results of operations as a result of the a doption of ASU 2015-17 and prior periods have not been adjusted. In 2016, we utilized federal and state net operating loss carryforwards upon filing the 2015 federal and state tax returns. As of December 31, 2016 , we had foreign net operating loss carryforwards of $ 8.0 million , which can be utilized against future foreign income through December 31, 2025 . Additionally, as of December 31, 2016 , there were foreign net operating loss carryforwards of $ 153.4 million that have an indefinite life. The tax provisions differ from the amount computed using the federal statutory income tax rate as follows: Years ended December 31, December 26, December 27, 2016 2015 2014 Income tax provision at federal statutory rate $ 264,542 $ 252,265 $ 248,260 State income tax provision, net of federal income tax effect 11,236 14,627 11,381 Foreign income tax provision (18,036) (25,942) (22,960) Pass through noncontrolling interest (13,083) (12,463) (11,431) Valuation allowance 1,472 (5,006) (770) Unrecognized tax benefits and audit settlements 3,066 13,867 11,501 Interest expense related to loans (21,737) (22,415) (24,043) Other (9,502) (3,542) 3,672 Total income tax provision $ 217,958 $ 211,391 $ 215,610 For the year ended December 31, 2016 , our effective tax rate was 28.8 % compared to 29.3 % for the prior year period. The difference between our effective tax rates and the federal statutory tax rates for both periods primarily relates to state and foreign income taxes and interest expense. During the second quarter of 2016 , the effective tax rate was affected by a feder al tax audit settlement, which reduced our income tax expense by approximately $ 4.5 million which is included in the unrecognized tax benefits amount above. During the third quarter of 2015, we received a favorable response to a tax petition, which allo wed us to conclude that it wa s more likely than not that certain unrecognized tax benefits, which had been previously reserved, would be realized. As a result, our provision for income taxes in 2015 included a $6.3 million income tax benefit, which is inc luded in the unrecognized tax benefits amount above. Absent the effects of this income tax benefit in the third quarter of 2015, our effective tax rate for the year ended December 26, 2015 would have been 30 .2 % as compared to our actual effective tax rate of 29.3 %. The remaining difference between our effective tax rate and the federal statutory tax rate for the period primarily relates to state and foreign income taxes and interest expense. Provision has not been made for U.S. or addi tional foreign taxes on undistributed earnings of foreign subsidiaries, which have been, and will continue to be reinvested. These earnings could become subject to additional tax if they were remitted as dividends, if foreign earnings were loaned to us or a U.S. affiliate, or if we should sell, transfer or dispose of our stock in the foreign subsidiaries. It is not practicable to determine the amount of additional tax, if any, that might be payable on the foreign earnings because if we were to repatriate these earnings, we believe there would be various methods available to us, each with different U.S. tax consequences . As of December 31, 2016 , the cumulative amount of reinvested earnings was approximately $ 937.0 million. ASC Topic 740 clarifies the accounting for uncertainty in income taxes recognized in the financial statements in accordance with other provisions contained within this guidance. This topic prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by the taxing authoritie s. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate audit settlement . In the normal course of business, our tax returns are subject to examination by various taxing authori ties. Such examinations may result in future tax and interest assessments by these taxing authorities for uncertain tax positions taken in respect to certain tax matters . The total amount of unrecognized tax benefits , which are included in “Other liabilities” within our consolidated balance sheets as of December 31, 2016 was approximately $ 107.4 million, of which $ 81.4 million would affect the effective tax rate if recognized. It is expected that the amount of unrecognized tax benefits will change in the next 12 months; however, we do not expect the change to have a material impact on our consolidated financial statem ents. The total amounts of interest and penalties , which are classified as a component of the provision for income taxes, were approximately $ 17.1 million and $ 0 , respectively , as of December 31, 2016 . The tax years subject to examination by major tax jurisdictions include the years 2012 and forward by the U.S. Internal Revenue Service (“IRS”), as well as the years 2008 and forward for certain states and certain foreign jurisdictions. In December 2014, the IRS issued a Statutory Notice of Deficiency for 2009, 2010 and 2011. During the quarter ended March 28, 2015, we filed our petition to the U.S. Tax Court disputing the adjustments proposed by the IRS. During the quarter ended June 27, 2015, we were notified by the IRS that our protest was transferred to the Appellate Divisions (Appeals Section) of the IRS. During the quarter ended March 26, 2016, we filed our protest with the Appellate Division. The opening appeals conference was held on June 8, 2016 and a propose d settlement was reached. On July 13, 2016, a joint status report was filed with the Tax Court indic ating a basis for settlement had been reached on all of the issues in this case. On October 7, 2016 an executed decision document was signed by the Intern al Revenue Service’s Special Trial Attorney and submitted to the Tax Court finalizing the Appeals decision. During the quarter ended December 31, 2016, we filed a Mutual Agreement Procedure request with the IRS for assistance from the U.S. Competent Autho rity for an open Transfer Pricing issue. We do not expect this to have a significant effect on our consolidated financial position, liquidity or the results of operations. The following table provides a reconciliation of unrecognized tax benefits exclud ing the effects of deferred taxes , interest and penalties : December 31, December 26, 2016 2015 Balance, beginning of period $ 77,600 $ 65,800 Additions based on current year tax positions 7,300 10,400 Additions based on prior year tax positions 20,400 19,600 Reductions based on prior year tax positions (900) (10,500) Reductions resulting from settlements with taxing authorities (9,700) (7,600) Reductions resulting from lapse in statutes of limitations (4,300) (100) Balance, end of period $ 90,400 $ 77,600 |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Note 13 – Concentrations of Risk Certain financial instruments potentially subject us to concentrations of credit risk. These financial instruments consist primarily of cash equivalents, trade receivables, long-term investments, notes receivable and derivative instruments. In all cases, our maximum exposure to loss from credit risk equals the gross fair value of the financial instruments. We continuously assess the need for reserves for such losses, which have been within our expectations. We d o not require collateral or other security to support financial instruments subject to credit risk, except for long-term notes receivable. We limit our credit risk with respect to our cash equivalents, short-term and long-term investments and derivative i nstruments, by monitoring the credit worthiness of the financial institutions who are the counter-parties to such financial instruments. As a risk management policy, we limit the amount of credit exposure by diversifying and utilizing numerous inve stment grade counter-parties. With respect to our trade receivables, our credit risk is somewhat limited due to a relatively large customer base and its dispersion across different types of health care professionals and geographic areas. No single customer acco unted for more than 1 % of our net sales in 2016 or 2015 . With respect to our sources of supply, our top 10 health care distribution suppliers and our single largest supplier accounted for approximately 34 % and 6 %, respectively, of our aggregate purchases in 2016 and approximately 34 % and 7 %, respectively, of our aggregate purchases in 2015 . Our long-term notes receivable primarily represent strategi c financing arrangements with certain industry affiliates and amounts owed to us from sales of certain businesses. Generally, these notes are secured by certain assets of the counter-party; however, in most cases our security is subordinate to other comme rcial financial institutions. While we have exposure to credit loss in the event of non-performance by these counter-parties, we conduct ongoing assessments of their financial and operational performance. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 14 – Derivatives and Hedging Activities We are exposed to market risks as well as changes in foreign currency exchange rates as measured against the U.S. dollar and each other, and changes to the credit markets. We attempt to minimize these risks by primarily using foreign currency forward contracts and by maintaining counter-party credit limits. These hedging activities provide only limited protection against currency exchange and credit risks. Factors that could influence the effectiveness of our hedging programs include currency markets and availability of hedging instruments and liquidity of the credit markets. All foreign currency forward contracts that we enter i nto are components of hedging programs and are entered into for the sole purpose of hedging an existing or anticipated currency exposure. We do not enter into such contracts for speculative purposes and we manage our credit risks by diversifying our investments, maintaining a strong balance sheet and having multiple sources of capital. Fluctuations in the value of certain foreign currencies as compared to the U.S. dollar may positively or negatively affect our revenues, gross margins, operating expenses and retained earnings, all of which are expressed in U.S. dollars. Where we deem it prudent, we engage in hedging programs using primarily foreign currency forward contracts aimed at limiting the impact of foreign currency exchange rate fluctuations on earnings. We purchase short-term (i.e., 18 months or less) foreign currency forward contracts to protect against currency exchange risks associated with intercompany loans due from our international subsidiaries and the payment of merchandise purchases to our foreign suppliers. We do not hedge the translation of foreign currency profits into U.S. dollars, as we regard this as an accounting exposure, not an economic exposure. Our hedging activities have historically not had a material impact on our consolidated financial statements. Accordingly, additional disclosures related to derivatives and hedging activities required by ASC Topic 815 have been omitted. |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Data | Note 15 – Segment and Geographic Data We conduct our business through two reportable segments: ( i ) health care distribution and (ii) technology and value-added services. These segments offer different products and services to the same customer base. The health care distribution reportable segment aggregates our global dental, animal health and medical operating segments. This segment distributes consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and vitamins. Our global dental group serves office-based dental practitioners, dental laboratories, schools and other institutions. Our global animal health group serves animal health practices and clinics. Our global medical group serves office-based medical practitioners, ambulatory surgery centers, other alternate-care settings and other institutions. Our global dental, animal health and medical groups serve practitioners in 33 countries worldwide. Our technology and value-added services group provides software, technology and other value-added services to health care practitioners. Our technology group offerings include practice management software systems for dental and medical practitioners and animal health clinics. Our value-added practice solutions include financial services on a non-recourse basis, e-services, continuing education services for practitioners, consulting and other services . The following tables present information about our reportable and operating segments: Years Ended December 31, December 26, December 27, 2016 2015 2014 Net Sales: Health care distribution (1): Dental $ 5,555,299 $ 5,276,407 $ 5,381,215 Animal health 3,253,095 2,921,624 2,898,612 Medical 2,337,661 2,072,915 1,742,685 Total health care distribution 11,146,055 10,270,946 10,022,512 Technology and value-added services (2) 425,613 358,773 348,878 Total $ 11,571,668 $ 10,629,719 $ 10,371,390 (1) Consists of consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and vitamins. (2) Consists of practice management software and other value-added products, which are distributed primarily to health care providers, and financial services on a non-recourse basis, e-services, continuing education services for practitioners, consulting and other services. Years ended December 31, December 26, December 27, 2016 2015 2014 Operating Income: Health care distribution $ 652,106 $ 626,574 $ 611,771 Technology and value-added services 119,468 107,398 103,371 Total $ 771,574 $ 733,972 $ 715,142 Income before taxes and equity in earnings of affiliates: Health care distribution $ 640,184 $ 617,582 $ 609,619 Technology and value-added services 115,651 103,176 99,693 Total $ 755,835 $ 720,758 $ 709,312 Depreciation and Amortization: Health care distribution $ 146,276 $ 141,184 $ 136,126 Technology and value-added services 23,504 17,943 16,112 Total $ 169,780 $ 159,127 $ 152,238 Income Tax Expense: Health care distribution $ 185,571 $ 180,133 $ 185,649 Technology and value-added services 32,387 31,258 29,961 Total $ 217,958 $ 211,391 $ 215,610 Interest Income: Health care distribution $ 13,086 $ 12,833 $ 13,585 Technology and value-added services 189 102 70 Total $ 13,275 $ 12,935 $ 13,655 Interest Expense: Health care distribution $ 31,845 $ 25,926 $ 23,916 Technology and value-added services 48 82 141 Total $ 31,893 $ 26,008 $ 24,057 Purchases of Fixed Assets: Health care distribution $ 66,943 $ 68,235 $ 74,955 Technology and value-added services 3,236 3,449 7,161 Total $ 70,179 $ 71,684 $ 82,116 As of December 31, December 26, December 27, 2016 2015 2014 Total Assets: Health care distribution $ 6,294,735 $ 6,129,285 $ 5,756,993 Technology and value-added services 435,661 375,455 381,814 Total $ 6,730,396 $ 6,504,740 $ 6,138,807 The following table presents information about our operations by geographic area as of and for the three years ended December 31, 2016 . Net sales by geographic area are based on the respective locations of our subsidiaries. No country, except for the United States, generated net sales greater than 10 % of consolidated net sales. There were no material amounts of sales or transfers amon g geographic areas and there were no material amounts of export sales. 2016 2015 2014 Net Sales Long-Lived Assets Net Sales Long-Lived Assets Net Sales Long-Lived Assets United States $ 7,536,897 $ 1,803,689 $ 6,798,847 $ 1,739,546 $ 6,247,056 $ 1,771,719 Other 4,034,771 1,171,137 3,830,872 1,079,494 4,124,334 1,067,636 Consolidated total $ 11,571,668 $ 2,974,826 $ 10,629,719 $ 2,819,040 $ 10,371,390 $ 2,839,355 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation Related Costs [Abstract] | |
Employee Benefit Plans | Note 16 – Employee Benefit Plans Stock-based Compensation Our accompanying consolidated statements of income reflect pre-tax share-based compensation expense of $ 58.2 million ($ 41.4 million after-tax), $ 44.6 million ($ 31.5 million after-tax) and $ 45.9 million ($ 31.9 million after-tax) for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 . Our accompanying consolidated stateme nts of cash flows present our stock-based compensation expense as an adjustment to reconcile net income to net cash provided by operating activities for all periods presented. In the accompanying consolidated statements of cash flows, we presented $ (0.5) million, $ 2.2 million and $ 5.9 million of benefits associated with tax deductions in excess of recognized compensation as a cash inflow from financing activities for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 . Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. We measure stock-based compensation at the grant date, based on the estimated fair value of the award, and recognize the cost (net of estimated forfeitures) as compensation expense on a straight-line basis over the requisite service period. Our stock-based compensation expense is reflected in selling, general and administrative exp enses in our consolidated statements of income. Stock-based awards are provided to certain employees and non-employee directors under the terms of our 2013 Stock Incentive Plan, as amended, and our 2015 Non-Employee Director Stock Incentive Plan (together , the “Plans”). The Plans are administered by the Compensation Committee of the Board of Directors. Prior to March 2009, awards under the Plans principally included a combination of at-the-money stock options and restricted stock/units. Since March 2009 , equity-based awards have been granted solely in the form of restricted stock/units, with the exception of providing stock options to employees pursuant to certain pre-existing contractual obligations. As of December 31, 2016 , there were 31,229 shares authorized and 4,678 shares available to be granted under the 2013 Stock Incentive Plan and 900 shares authorized and 141 shares available to be granted under the 2015 Non-Employee Director Stock Incentive Plan. Grants of restricted stock/units are stock-based awards granted to recipients with specified vesting provisions. In the case of restricted stock, common stock is delivered on the date of grant, subject to vesting conditions. In the case of restricted stock units, common stock is generally delivered on or following satisfaction of vesting conditions. We issue restricted stock/units that vest solely based on the recipient’s continued service over time (primarily four-year cliff vesting, except for grants made under the 2015 Non-Employee Director Stock Incentive Plan, which are primarily 12-month cliff vesting) and restricted stock/units that vest based on our achieving specified performance measurements and the recipient’s continued service over time (primarily three-year cliff vesting). With respect to time-based restricted stock/units, we estimate the fair value on the date of grant based on our closing stock price. With respect to performance-based restricted stock/units, the number of shares that ultimately vest and are received by the recipient is based upon our performance as measured against specified targets over a specified period, as determined by the Compensation Committee of the Board of Directors. Although there is no guarantee that performance targets will be achieved, we estimate the fair value of performance-based restricted stock/units based on our closing stock price at time of grant. The Plans provide for adjustments to the performance-based restricted stock/units targets for significant events such as acquisitions, d ivestitures, new business ventures, certain capital transactions (including share repurchases), restructuring costs, if any, changes in accounting principles or in applicable laws or regulations and certain foreign exchange fluctuations. Over the performa nce period, the number of shares of common stock that will ultimately vest and be issued and the related compensation expense is adjusted upward or downward based upon our estimation of achieving such performance targets. The ultimate number of shares del ivered to recipients and the related compensation cost recognized as an expense will be based on our actual performance metrics as defined under the Plans. We record deferred income tax assets for awards that will result in future deductions on our income tax returns based on the amount of compensation cost recognized and our statutory tax rate in the jurisdiction in which we will receive a deduction. Differences between the deferred income tax assets recognized for financial reporting purposes and the ac tual tax deduction reported on our income tax return are recorded in additional paid-in capital (if the tax deduction exceeds the deferred income tax asset) or in earnings (if the deferred income tax asset exceeds the tax deduction and no additional paid-i n capital exists from previous awards). Stock-based compensation grants for the three years ended December 31, 2016 primarily consisted of restri cted stock/ unit grants. Certain stock-based compensation granted may require us to settle in the form of a cash payment. During the year ended December 31, 2016 , we recorded a liability of $ 0.8 million relating to the grant date fair value of stock-based compensation to be settled in cash, as well as an expense of $ 0.3 million rel ating to the change in the fair value of these grants . The weighted-average grant date fair value of stock-based awards granted before forfeitures was $ 167.80 , $ 140.80 and $ 119.45 per share during the yea rs ended December 31, 2016 , December 26, 2015 and December 27, 2014 . Total unrecognized compensation cost related to non-vested awards as of December 31, 2016 was $ 85.9 million, which is expected to be recognized over a we ighted-average period of approximately 2.0 years. A summary of the stock option activity under the Plans is presented below: Years Ended December 31, December 26, December 27, 2016 2015 2014 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 385 $ 56.00 684 $ 53.41 1,323 $ 51.53 Granted - - - - - - Exercised (208) 54.99 (299) 50.09 (639) 49.51 Forfeited - - - - - - Outstanding at end of year 177 $ 57.19 385 $ 56.00 684 $ 53.41 Options exercisable at end of year 177 $ 57.19 385 $ 56.00 684 $ 53.41 During the year s ended December 31, 2016 , December 26, 2015 and December 27, 2014 , we did not grant any stock options. The following table represents the intrinsic values of: As of December 31, December 26, December 27, 2016 2015 2014 Stock options outstanding $ 16,681 $ 38,882 $ 57,421 Stock options exercisable 16,681 38,882 57,421 The total cash received as a result of stock option exercises for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 was approximately $ 11.4 million, $ 14.9 million and $ 31.5 million. In connection with these exercises, the tax benefits that we realized for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 were $ 23.4 million, $ 20.8 millio n and $ 11.2 million. We settle employee stock option exercises with newly issued common shares. The total intrinsic value per share of restricted stock /units that vested was $ 163.71 , $ 143.20 and $ 119.36 during the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 . The following table summarizes the status of our non-vested restricted stock /units for the year ended December 31, 2016 : Time-Based Restricted Stock/Units Weighted Average Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Outstanding at beginning of period 775 $ 99.29 Granted 175 155.06 Vested (239) 74.66 Forfeited (41) 124.22 Outstanding at end of period 670 $ 121.08 $ 151.71 Performance-Based Restricted Stock/Units Weighted Average Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Outstanding at beginning of period 930 $ 91.33 Granted 246 159.78 Vested (214) 90.58 Forfeited (37) 137.92 Outstanding at end of period 925 $ 108.09 $ 151.71 401(k) Plans We offer qualified 401(k) plans to substantially all our domestic full-time employees. As determined by our Board of Directors, matching contributions to these plans generally do not exceed 100 % of the participants’ contributions up to 7 % of their base compensation, subject to applicable legal limits. Matching contributions consist of cash and were alloca ted entirely to the participant s ’ investment elections on file, subject to a 20 % allocation limit to the Henry Schein Stock Fund . Forf eitures attributable to participants whose employment terminates prior to becoming fully vested are used to reduce our matching contributions and offset administrative expenses of the 401(k) plans. Assets of the 401(k) and other defined contribution plans are held in self-directed accounts enabling participants to choose from various investment fund options. Matching contributions and administrative expenses related to these plans charged to operations during the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 amounted to $ 34.0 million, $ 31.5 million and $ 28.6 million. Supplemental Executive Retirement Plan We offer an unfunded, non-qualified supplemental executive r etirement plan to eligible employees. This plan generally covers officers and certain highly-compensated employees after they have reached the maximum IRS allowed pre-tax 401(k) contribution limit. Our contributions to this plan are equal to the 401(k) e mployee-elected contribution percentage applied to base compensation for the portion of the year in which such employees are not eligible to make pre-tax contributions to the 401(k) plan. The amounts charged to operations during the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 amounted to $ 0.3 million, $ 1.5 million and $ 1.9 million. Deferred Compensation Plan During 2011, we began to offer a deferred compe nsation plan to a select group o f management or highly compensated employees of the Company and certain associated companies. This plan allows for the elective deferral of base salary, bonus and/or commission compensation by eligible employees. The amount s charged to operations during the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 were approximately $ 1.7 million, $ 0.1 million and $ 0.7 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 17 – Commitments and Contingencies Operating Leases We lease facilities and equipment under non-cancelable operating leases expiring through 2033 . We expect that in the normal course of business, leases will be renewed or replaced by other leases. Future minimum annual r ental payments under our non-cancelable operating leases as of December 31, 2016 were : 2017 $ 84,010 2018 67,633 2019 52,382 2020 40,749 2021 29,374 Thereafter 63,393 Total minimum operating lease payments $ 337,541 Total rental expense for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 was $ 79.6 million, $ 76.0 million and $ 76.1 million. Capital Leases We lease certain equipment under capital leases. Future minimum annual lease payments under our capital leases together with the present value of the minimum capital lease payments as of December 31, 2016 were: 2017 $ 1,517 2018 1,244 2019 738 2020 310 2021 266 Thereafter 1,834 Total minimum capital lease payments 5,909 Less: Amount representing interest at 1.38% to 19.15% (493) Total present value of minimum capital lease payments $ 5,416 Purchase Commitments In our health care distribution business, we sometimes enter into long-term purchase commitments to ensure the availability of products for distribution. Future minimum annual payments for inventory purchase commitments as of December 31, 2016 were: 2017 $ 179,562 2018 116,394 2019 91,780 2020 101,280 2021 111,680 Thereafter 116,200 Total minimum inventory purchase commitment payments $ 716,896 Litigation In September 2015, Henry Schein, Inc. was served with a summons and complaint in an action commenced in the United States District Court for the Eastern District of New York, entitled SourceOne Dental, Inc. v. Patterson Companies, Inc., Henry Schein, Inc. and Benco Dental Supply Company, Civil Action No. 15-cv-05440-JMA-GRB. Plaintiff alleges that, through its website, it markets and sells dental supplies and equipment to dentists. Plaintiff a lleges, among other things, that defendants conspired to eliminate plaintiff as a viable competitor and to exclude plaintiff from the market for the marketing, distribution and sale of dental supplies and equipment in the United States and that defendants unlawfully agreed with one another to boycott dentists, manufacturers and state dental associations that deal with, or considered dealing with, plaintiff. Plaintiff asserts the following claims: (i) unreasonable restraint of trade in violation of state a nd federal antitrust laws; (ii) tortious interference with prospective business relations; (iii) civil conspiracy; and (iv) aiding and abetting the other defendants’ ongoing tortious and anticompetitive conduct. Plaintiff seeks equitable relief, compensat ory and treble damages, jointly and severally, punitive damages, interest and reasonable costs and expenses, including attorneys’ fees and expert fees. We intend to defend ourselves vigorously against the action. Beginning in January 2016, class action c omplaints were filed against Patterson Companies, Inc., Benco Dental Supply Co. and Henry Schein, Inc. Each of these complaints allege, among other things, that defendants conspired to fix prices, allocate customers and foreclose competitors by boycotting manufacturers, state dental associations and others that deal with defendants’ competitors. Subject to certain exclusions, these classes seek to represent all persons who purchased dental supplies or equipment in the United States directly from any of th e defendants or Burkhart Dental Supply Co. since August 31, 2008 . Each class action complaint asserts a single count under Section 1 of the Sherman Act, and seeks equitable relief, compensatory and treble damages, jointly and severally, and reasonable cos ts and expenses, including attorneys’ fees and expert fees. We intend to defend ourselves vigorously against these actions. From time to time, we may become a party to other legal proceedings, including, without limitation, product liability claims, empl oyment matters, commercial disputes, governmental inquiries and investigations (which may in some cases involve our entering into settlement arrangements or consent decrees), and other matters arising out of the ordinary course of our business. While the results of any legal proceeding cannot be predicted with certainty, in our opinion none of these other pending matters are currently anticipated to have a material adverse effect on our financial condition or results of operations. As of December 31, 2016 , we had accrued our best estimate of potential losses relating to claims that were probable to result in liability and for which we were able to reasonably estimate a loss. This accrued amount, as well as related expenses, was not material to our financial position, results of operations or cash flows. Our method for determining estimated losses considers currently available facts, presently enacted laws and regulations and other factors, including probable recoveries from third parties. Employment, Consulting and Non-Compete Agreements We have definite-lived employment, consulting and non-compete agreements that have varying base aggregate annual payments for the years 2017 through 2021 and thereafter of approximately $ 16.3 million, $ 3.8 million, $ 2.3 million, $ 1.1 million and $ 1.0 million . We also have l ifetime consulting agreement s that provide for current compensation of $ 0.5 million per year, increasing $ 25 every fifth year with the next increase in 2017 . In addition, some agre ements have provisions for additional incentiv es and compensation. |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Information (Unaudited) | Note 18 – Quarterly Informati on (Unaudited) The following tables present certain quarterly financial data: Quarters ended March 26, June 25, September 24, December 31, 2016 (1) 2016 (1) 2016 (1) 2016 (1) Net sales $ 2,712,956 $ 2,872,630 $ 2,865,148 $ 3,120,934 Gross profit 779,305 803,316 789,491 861,857 Restructuring costs 4,058 20,383 5,370 16,080 Operating income 176,194 180,677 200,721 213,982 Net income 124,533 133,098 145,291 153,473 Amounts attributable to Henry Schein, Inc.: Net income 113,752 120,097 133,713 139,216 Earnings per share attributable to Henry Schein, Inc.: Basic $ 1.39 $ 1.47 $ 1.65 $ 1.75 Diluted 1.37 1.46 1.63 1.73 Quarters ended March 28, June 27, September 26, December 26, 2015 (1) 2015 (1) 2015 (1) (2) 2015 (1) Net sales $ 2,463,646 $ 2,629,320 $ 2,685,835 $ 2,850,918 Gross profit 713,395 750,678 748,908 799,278 Restructuring costs 6,862 7,222 8,438 12,409 Operating income 161,367 183,030 188,882 200,693 Net income 111,580 129,608 141,396 140,843 Amounts attributable to Henry Schein, Inc.: Net income 103,447 117,928 127,735 129,948 Earnings per share attributable to Henry Schein, Inc.: Basic $ 1.24 $ 1.42 $ 1.54 $ 1.58 Diluted 1.22 1.40 1.52 1.56 (1) See Note 10 - "Plans of Restructuring" for details of the restructuring costs incurred during the fiscal years of 2016 and 2015. (2) See Note 12 - "Incomes Taxes" for details of the income tax benefit from a favorable tax ruling received by a subsidiary, net of noncontrolling interest, during the third quarter of 2015. We experience fluctuations in quarterly financial results . As a result, we may fail to meet or exceed the expectations of securities analysts and investors, which could cause our stock price to decline. Our business is subject to seasonal and other quarterly fluctuations. Revenues and profitability generally have been higher in the third and fourth quarters due to the timing of sales of seasonal products (including influenza vaccine, equipm ent and software products), purchasing patterns of office-based health care practitioners and year-end promotions. Revenues and profitability generally have been lower in the first quarter, primarily due to increased sales in the prior two quarters. We e xpect our historical seasonality of sales to continue in the foreseeable future. Quarterly results may also be materially adversely affected by a variety of other factors, including: • timing and amount of sales and marketing expenditures; • timing o f pricing changes offered by our supplier s; • timing of the introduction of new products and services by our supplier s; • timing of the release of upgrades and enhancements to our technology-related products and services; • changes in or availability of supplier contracts or rebate programs; • supplier rebates based upon attaining certain growth goals; • changes in the way supplier s introduce or deliver products to market; • costs of developing new applications and services; • our ability to correctly identify customer needs and preferences and predict future needs and preferences ; • uncertainties regarding potential significant breaches of data security or disruptions of our information technology systems ; • unexpected r egulatory actions, or government regulation generally ; • exclusivity requirements with certain supplier s may prohibit us from distributing competitive products manufactured by other supplier s; • loss of sales representatives; • costs related to acquisitions and/or integrations of technologies or businesses; • costs associated with our self-insured medical and dental insurance programs ; • general market and economic conditions, as well as those specific to the health care industry and related industries; • our success in establishing or maintaining business relationships; • unexpected difficulties in developing and manufacturing products; • product demand and availability or recalls by manufacturers; • exposure to product li ability and other claims in the event that the use of the product s we sell results in injury; • increases in shipping costs or service issue s with our third-party shippers; • fluctuations in the value of foreign currencies; • restructuring costs; • the adoption or repeal of legislation ; and • c hanges in accounting principles. Any change in one or more of these or other factors could cause our annual or quarterly financial results to fluctuate. If our financial results do not meet market expecta tions, our stock price may decline. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 19 – Supplemental Cash Flow Information Cash paid for i nterest and income taxes was : Years ended December 31, December 26, December 27, 2016 2015 2014 Interest $ 29,391 $ 24,033 $ 22,285 Income taxes 205,196 180,897 208,272 There was approximately $ 63.8 million, $ 5.0 million and $ 3.3 million of debt assumed as a part of the acquisitions for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 , respectively. Debt assumed during the year ended December 31, 2016 primarily relates to the acquisitions of Dental Cremer S.A. and Dental Speed Graph. Debt assumed during the year ended December 26, 2015 relates to the acquisitions of scil animal car e company GmbH, Jorgen Kruuse A/S and Dental Trey (S.R.L.). Debt assumed during the year ended December 27, 2014 relates to the acquisitions of BioHorizons, Inc. and Medivet S.A. For the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 , we had $ (1.0) million, $ 2.1 million and $ (2.5) million of non-cash net unrealized gains (losses) related to foreign currency hedging activities, respectively. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (in thousands) Additions Balance at Charged to Charged to Balance at beginning of statement of other end of Description period income (1) accounts (2) Deductions (3) period Year ended December 31, 2016: Allowance for doubtful accounts, sales returns and other $ 77,008 $ 2,647 $ 16,909 $ (6,235) $ 90,329 Year ended December 26, 2015: Allowance for doubtful accounts, sales returns and other $ 80,671 $ 3,184 $ 1,124 $ (7,971) $ 77,008 Year ended December 27, 2014: Allowance for doubtful accounts, sales returns and other $ 78,298 $ 4,619 $ 5,828 $ (8,074) $ 80,671 (1) Represents amounts charged to bad debt expense. (2) Amounts charged to net sales primarily relate to increases in allowances for sales returns. (3) Deductions primarily consist of fully reserved accounts receivable that have been written off. |
Significant Accounting Polici29
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of Henry Schein, Inc. and all of our controlled subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated affiliates, which are greater than or equal to 20% and less than or equal to 50% owned or investments in unconsolidated affiliates of less than 20% in which we have the ability to influence the operating or financial decisions, are accounted for under the equity method. See Note 6 for accounting treatment of Redeemable noncontrolling interests. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fiscal Year | Fiscal Year We report our results of operations and cash flows on a 52 -53 week basis ending on the last Saturday of December. The year ended December 31, 2016 consisted of 53 weeks, and the years ended December 26, 2015 and December 27, 2014 consisted of 52 weeks. |
Revenue Recognition | Revenue Recognition We generate revenue from the sale of dental, animal health and medical consumable products, as well as equipment, software products and services and other sources. Provisions for discounts, rebates to customers, customer returns and other contra-revenue adjustments are recorded based upon historical data and estimates and are provided for in the period in which the related sales are recognized. Revenue derived from the sale of consumable products is recognized when products are shipped to customers. Such sales typically entail high- volume, low-dollar orders shipped using third-party common carriers. We believe that the shipment date is the most appropriate point in time indicating the completion of the earnings process because we have no post-shipment obligations, the product price is fixed and determinable, collection of the resulting receivable is reasonably assured and product returns are reasonably estimable. Revenue derived from the sale of equipment is recognized when products are delivered to customers. Such sales typically entail scheduled deliveries of large equipment primarily by equipment service technicians. Some equipment sales require minimal installation, which is typically completed at the time of delivery. Revenue derived from the sale of software products is recognized when products are shipped to customers. Such software is general ly installed by customers and does not require extensive training due to the nature of its design. Revenue derived from post-contract customer support for software, including annual support and/or training, is recognized over the period in which the servic es are provided. Revenue derived from multiple element arrangements, and the related deferral of such revenue (which is insignificant to our financial statements), is recognized as follows. When we sell software products together with related services (i. e., training and technical support) we allocate revenue to the delivered elements using the residual method, based upon vendor-specific objective evidence (“VSOE”) of the fair value of the undelivered elements, or defer it until such time as vendor-specifi c evidence of fair value is obtained. Multiple element arrangements that include elements that are not considered software consist primarily of equipment and the related installation service. We allocate revenue for such arrangements based on the relative selling prices of the elements applying the following hierarchy: first VSOE, then third-party evidence (“TPE”) of selling price if VSOE is not available, and finally our estimate of the selling price if neither VSOE nor TPE is available. VSOE exists when we sell the deliverables separately and represents the actual price charged by us for each deliverable. Estimated selling price reflects our best estimate of what the selling prices of each deliverable would be if it were sold regularly on a standalone bas is taking into consideration the cost structure of our business, technical skill required, customer location and other market conditions. Each element that has standalone value is accounted for as a separate unit of accounting. Revenue allocated to each un it of accounting is recognized when the service is provided or the product is delivered. Revenue derived from other sources including freight charges, equipment repairs and financial services, is recognized when the related product revenue is recognized o r when the services are provided. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid short-term investments with an original maturity of three months or less to be cash equivalents. Due to the short-term maturity of such investments, the carrying amounts are a reasonable estimate of fair value. Outstanding checks in excess of funds on deposit of $ 98.5 mill ion and $ 54.4 million, primarily related to payments for inventory, were classified as accounts payable as of December 31, 2016 and December 26, 2015 . |
Accounts Receivable and Reserves | Acc ounts Receivable and Reserves The carrying amount of accounts receivable is reduced by a valuation allowance that reflects our best estimate of the amounts that will not be collected. The reserve for accounts receivable is comprised of allowance for doubtful accounts and sales returns. In addition to reviewing delinquent accounts receivable, we consider many factors in estimating our reserve, including historical data, experience, customer types, credit worthiness and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other fac tors expected to affect collecta bility. |
Inventories and Reserves | Inventories and Reserves Inventories consist primarily of finished goods and are valued at the lower of cost or market. Cost is determined by the first-in, first-out method for merchandise or actual cost for large equipment and high tech equipment. In accordance with our policy for inventory valuation, we consider many factors including the condition and salability of the inventory, historical sales, forecasted sales and market and economic t rends. From time to time, we adjust our assumptions for anticipated changes in any of these or other factors expected to affect the value of inventory. |
Direct Shipping and Handling Costs | Direct Shipping and Handling Costs Freight and other direct shipping costs are included in cost of sales. Direct handling costs, which represent primarily direct compensation costs of employees who pick, pack and otherwise prepare, if necessary, merchandise for shipment to our customers are reflected in selling, general and administrative expenses. Direct shipping and handling costs were $ 86.2 million, $ 78.7 million and $ 78.4 million for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 . |
Advertising and Promotional Costs | Adve rtising and Promotional Costs We generally expense advertising and promotional costs as incurred. Total advertising and promotional expenses were $ 18.4 million, $ 19.2 million and $ 18.4 million for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 . Additionally, advertising and promotional costs incurred in connection with direct marketing, including product catalogs and printed material, are deferred and amortized on a straight-line basis over the period which is benefited, generally not exceeding one year. As of December 31, 2016 and December 26, 2015 , we had $ 3.5 million and $ 4.4 million of deferred direct marketing expenses included in other current assets. |
Supplier Rebates | Supplier Rebates Supplier rebates are included as a reduction of cost of sales and are recognized over the period they are earned. The factors we consider in estimating supplier rebate accruals include forecasted inventory purchases and sales, in conjunction with supplier rebate contract terms, which generally provide for increasing rebates based on either increased purchase or sales volume. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation or amortization. Depreciation is computed primarily under the straight-line method (see Note 2 - Property and Equipment, Net for estimated useful lives). Amortization of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term. Capitalized software costs consist of costs to purchase and develop software. Costs incurred during the application development stage for software bought and further customized by outside suppliers for our use and software developed by a supplier for our proprietary use are capitalized. Costs incurred for our own personnel who are directly associated with software development are capitalized. |
Income Taxes | Income Taxes We account for income taxes under an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in tax laws or rates. The effect on defe rred income tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period that includes the enactment date. We file a consolidated U.S. federal income tax return with our 80% or greater owned U.S. subsidiaries . |
Foreign Currency Translation and Transactions | Foreign Currency T ranslation and Transactions The financial position and results of operations of our foreign subsidiaries are determined using local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each year-end. Income statement accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from the use of differing exchange rates from period to period are included in Accumulated other comprehensive income in stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in earnings. |
Risk Management and Derivative Financial Instruments | Risk Management and De rivative Financial Instruments We use derivative instruments to minimize our exposure to fluctuations in foreign currency exchange rates. Our objective is to manage the impact that foreign currency exchange rate fluctuations could have on recognized asset and liability fair values, earnings and cash flows. Our risk management policy requires that derivative contracts used as hedges be effective at reducing the risks associated with the exposure being hedged and be designated as a hedge at the inception of the contract. We do not enter into derivative instruments for speculative purposes. Our derivative instruments primarily include foreign currency forward agreements related to certain intercompany loans and certain forecasted inventory purchase commitments with foreign suppliers. Our foreign currency forward agreements related to forecasted inventory purchase commitments are designated as cash flow hedges. Our foreign currency forward agreements related to foreign currency balance sheet exposure provide economic hedges but are not designated as hedges for accounting purposes. For agreements not designated as hedges, changes in the value of the derivative, along with the transaction gain or loss on the hedged item, are recorded in earnings. For cash flow hedges, the effective portion of the changes in the fair value of the derivative, along with any gain or loss on the hedged item, is recorded as a component of Accumulated other comprehensive income in stockholders’ equity and subsequently reclassified into earnings in the period(s) during which the hedged transaction affects earnings. We classify the cash flows related to our hedging activities in the same category on our consolidated statements of cash flows as the cash flows related to the hedged item. |
Acquisitions | Acquisitions The net assets of businesses purchased are recorded at their fair value at the acquisition date and our consolidated financial statements include their results of operations from that date. Any excess of acquisition consideration over the fair value of id entifiable net assets acquired is recorded as goodwill. The major classes of assets and liabilities that we generally allocate purchase price to, excluding goodwill, include identifiable intangible assets (i.e., trademarks and trade names, customer relati onships and lists and non-compete agreements), property, plant and equipment, deferred taxes and other current and long-term assets and liabilities. The estimated fair v alue of identifiable intangible assets is based on critical estimates, judgments and a ssumptions derived from: analysis of market conditions; discount rate; discounted cash f lows; customer retention rates; and estimated useful lives. Some prior owners of such acquired subsidiaries are eligible to receive additional purchase price cash cons ideration if cert ain financial targets are met. For the year s ended December 31, 2016 , December 26, 2015 and December 27, 2014 , there were no material adjustments recorded in our consolidated statement of income relating to changes in estimated conti ngent purchase price liabilities. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Some minority shareholders in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. Their interests in these subsidiaries are classified outside permanent equity on our consolidated balance sheets and are carried at the estimated redemption amounts. The redemption amounts have been estimated based on expected future earnings and cash flow and, if such earnings and cash flow are not achieved, the value of the redeemable noncontrolling interests might be impacted . Changes in the estimated redemption amounts of the noncontrolling interests subject to put options are reflected at each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments do not impact the calculation of earnings per share. |
Goodwill and Other Indefinite-Lived Intangibles Assets | Goodwill and Other Indefinite-Lived Intangible Assets Goodwill and other indefinite-lived intangible assets (primarily trademarks) are not amortized, but are subject to impairment analysis at least once annually. Such impairment analyses for goodwill require a comparison of the fair value to the carrying value of reporting units. We regard our reporting units to be our operating segments: health care distribution (global dental, animal health and medical) and technology and value-added services. Good will was allocated to such reporting units, for the purposes of preparing our impairment analyses, based on a specific identification basis. For the year s ended December 31, 2016 and December 26, 2015 , we tested goodwill for impairment using a quantitative analysis consisting o f a two-step approach. The first step of our quantitative analysis consists of a comparison of the carrying value of our reporting units, including goodwill, to the estimated fair value of our reporting units using a discounted cash flow methodology. If step one results in the carrying value of the reporting unit exceeding the fair value of such reporting unit, we would then proceed to step two which would require us to calculate the amount of impairment loss, if any, that we would record for such reporti ng unit. The calculation of the impairment loss in step two would be equivalent to the reporting unit ’ s carrying value of goodwill less the implied fair value of such goodwill. Our use of a discounted cash flow methodology includes estimates of future revenue based upon budget projections and growth rates which take into account estimated inflation rates. We also develop estimates for future levels of gross and operating profits and projected capital expenditures. Our methodology also includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. The estimates that we use in our discounted cash flow methodology involve many assumptions by management that are based upon future growth projections. For the year ended December 27, 2014 , we tested goodwill impairment under the provisions of Accounting Standards Update 2011-08, “Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment,” which allowed us to use quali tative factors to determine whether it is more likely than not that the fair values of our reporting units are less than their carrying values. The factors that we considered in developing our qualitative assessment included: Macroeconomic conditions con sisting of the overall sales growth of our business and the overall sales growth of each of our operating segments. We also consider our growth in market share in the markets in which we compete; Credit markets and our ability to access debt facilities a t favorable terms; Key personnel and management expertise, as well as our growth strategies for the next several years; and Our expectations of selling or disposing all, or a portion, of a reporting unit. Our impairment analysis for indefinite-lived intangibles consists of a comparison of the fair value to the carrying value of the assets. This comparison is made based on a review of historical, current and forecasted sales and gross profit levels, as well as a review of any factors that may indicate potential impairment. For indefinite-lived intangible assets, a present value technique, such as estimates of future cash flows, is utilized. We assessed the potential impairment of goodwill and other indefinite-lived intangible assets annually (at the beginning of our fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. S ome factors we consider important that could trigger an interim impairment review include: sign ificant underperformance relative to expected historical or projected future operating results; significant changes in the manner of our use of acquired assets or the strategy for our overall business (e.g., decision to divest a business); or significant negative industry or economic trends. If we determine through the impairment review process that goodwill or other indefinite-lived intangible assets are impaired, we record an impairment charge in our consolidated statements of income. For the year s en ded December 31, 2016 , December 26, 2015 and December 27, 2014 , the results of our goodwill and intangible impairment analysis did not result in any impairments. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, other than goodwill and other indefinite-lived intangibles, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows to be derived from such assets. Definite-lived intangible assets primarily consist of non-compete agreements, trademarks, trade names, customer lists, customer relationshi ps and intellectual property. For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and the estimated fair value. When an impairment exists, the related assets are written down to fair value. |
Cost of Sales | Cost of Sales The primary components of cost of sales include the cost of the product (net of purchase discounts, supplier chargebacks and rebates) and inbound and outbound freight charges. Costs related to purchasing, receiving, inspections, warehousing, internal inventory transfers and other costs of our distribution network are included in selling, general and administrative expenses along with other operating costs. As a result of differ ent practices of categorizing costs associated with distribution networks throughout our industry, our gross margins may not necessarily be comparable to other distribution companies. Total distribution network costs were $ 84.4 million, $ 70.4 million and $ 64.5 million for the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 . |
Comprehensive Income | Comprehensive Income Comprehensive income includes certain gains and losses that, under accounting principles generally accepted in the United States, are excluded from net income as such amounts are recorded directly as an adjustment to stockholders’ equity. Our comprehensive income is primarily comprised of net income, foreign currency translation gain (loss), unrealized gain (loss) on foreign currency hedging activities, unrealized investment gain (loss) and pension adjustment gain (loss). |
Recently Issued Accounting Standards [Policy Text Block] | Accounting Pronouncements Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued A ccounting S tandards U pdate (“ASU”) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs be reported in the balance sheet as a direct deduction from the face amount of the related liability, consistent with the pr esentation of debt discounts. Further, ASU 2015-03 requires the amortization of debt issuance costs to be reported as interest expense. Similarly, debt issuance costs and any discount or premium are considered in the aggregate when determining the effect ive interest rate on the debt. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. ASU 2015-03 must be applied retrospectively. Entities may choose to adopt the new requirements as of an earlier date for financial statements that have not been previously issued. The adoption of this ASU during 2016 did not have a material impact on our consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Simplifyin g the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 removes the previous requirement for an acquiring company to restate prior period financial results due to measurement-period adjustments. ASU 2015-16 requires that an acqu irer recognize provisional amounts that are identified during the measurement-period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 also requires presentation of the amount recorded in current period earnings by line i tem, either on the face of the income statement or within the notes to financial statements, which would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015 -16 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The guidance is to be applied prospectively to adjustments to provisional amounts that occur after the effective date o f the guidance. The adoption of this ASU during 2016 did not have a material impact on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17 (Topic 740), “ Balance Sheet Classification of Deferred Taxes ” (“ASU 2015-17”) . A SU 2015-17 requires deferred tax liabilities and assets to be classified as noncurrent in the Consolidated Balance Sheet. The standard will be effective for financial statements issued for annual periods beginning after December 15, 2016, and interim perio ds within those annual periods. Early adoption is permitted for financial statements that have not been previously issued. The ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. T he Company elected to early adopt ASU 2015-17 prospectively in the third quarter of 2016. As a result, all deferred tax assets and liabilities have been presented as noncurrent on the consolidated balance sheet as of December 31, 2016 . There was no impact on our results of operations as a result of the adoption of ASU 2015-17 and prior periods have not been adjusted. Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under accounting principles generally accepted in United States (“U.S. GAAP”). The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to c ustomers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be require d within the revenue recognition process than are required under existing U.S. GAAP. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers” (“ASU 2015-14”), which deferred the effective date by one year to December 15, 201 7 for interim and annual reporting periods beginning after that date. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. When effective, ASU 2014-09 will use either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients; or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Currently, we are reviewing our various revenue streams within our two reportable segments: (i) health care distribution and (ii) technology and value-added services. We are gathering data to quantify the amount of sales by type of revenue stream. Concurrently, through the use of various data gathering methods, we are categorizing the types of sales for our b usiness units for the purpose of comparing how we currently recognize revenue for the purpose of quantifying the impact, if any, that this ASU will have on our cons olidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842) (“ASU 2016-02”). ASU 2016-02 contains guidance on accounting for leases and requires that most lease assets and liabilities and the associated rights and obligations be recognized on the Company’s balance sheet. ASU 2016-02 focuses on lease a ssets and lease liabilities by lessees classified as operating leases under previous generally accepted accounting principles. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. ASU 2016-02 will require disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. The standard which requires the use of a modified retrospective approach will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. We are currently in the early stages of evaluating the impact of ASU 2016-02 on our consolidated financial statements. In March 2016, the FASB iss ued ASU No. 2016-09, “Stock Compensation” (Topic 718) (“ASU 2016-09”). ASU 2016-09 contains amended guidance for share-based payment accounting. We will adopt the provisions of this standard during the first quarter of 2017. The impact of ASU 2016-09 to our consolidated financial statements relating to our accounting for income taxes will require us to record all excess tax benefits and deficiencies as a component of income tax expense using the prospective method beginning as of January 1, 2017. Prio r to the implementation of this ASU, excess tax benefits were recorded as a component of additional paid in capital and tax deficiencies were recognized either as an offset to accumulated excess tax benefits, if any, or in the income statement. In addit ion, the ASU clarifies the classification of certain share based payment activities within the statements of cash flow. We have elected to prospectively present the amount of excess tax benefits related to stock compensation as a component of cash flow fr om operating activities. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which requires the measurement and recognition of expected credit losses for fi nancial assets held at amortized cost. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. This ASU is required to be adopted using the modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance of this ASU is effective. Based upon the level and makeup of o ur financial asset portfolio, past loan loss activity and current known activity regarding our outstanding loans, we do not expect that this ASU will have a material impact on the results of our consolidated financial statements. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, including related estimated useful lives | December 31, December 26, 2016 2015 Land $ 19,438 $ 18,762 Buildings and permanent improvements 127,097 117,674 Leasehold improvements 95,048 89,766 Machinery and warehouse equipment 121,395 117,068 Furniture, fixtures and other 129,444 114,304 Computer equipment and software 372,322 339,006 864,744 796,580 Less accumulated depreciation (530,838) (478,104) Property and equipment, net $ 333,906 $ 318,476 Estimated Useful Lives (in years) Buildings and permanent improvements 40 Machinery and warehouse equipment 5-10 Furniture, fixtures and other 3-10 Computer equipment and software 3-10 |
Goodwill and Other Intangible31
Goodwill and Other Intangibles, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | Health Care Distribution Technology and Value-Added Services Total Balance as of December 27, 2014 $ 1,710,554 $ 173,569 $ 1,884,123 Adjustments to goodwill: Acquisitions 66,070 5,464 71,534 Foreign currency translation (34,602) (13,462) (48,064) Balance as of December 26, 2015 1,742,022 165,571 1,907,593 Adjustments to goodwill: Acquisitions 116,640 29,165 145,805 Foreign currency translation (27,127) (6,531) (33,658) Balance as of December 31, 2016 $ 1,831,535 $ 188,205 $ 2,019,740 |
Other intangible assets - finite-lived | December 31, 2016 December 26, 2015 Accumulated Accumulated Cost Amortization Net Cost Amortization Net Non-compete agreements $ 40,783 $ (6,927) $ 33,856 $ 40,898 $ (10,131) $ 30,767 Trademarks / trade names - definite lived 136,211 (55,124) 81,087 114,271 (41,275) 72,996 Trademarks / trade names - indefinite lived 2,848 - 2,848 2,963 - 2,963 Customer relationships and lists 713,437 (288,417) 425,020 638,276 (236,485) 401,791 Other 134,254 (55,885) 78,369 127,532 (43,078) 84,454 Total $ 1,027,533 $ (406,353) $ 621,180 $ 923,940 $ (330,969) $ 592,971 |
Other intangible assets - indefinite-lived | December 31, 2016 December 26, 2015 Accumulated Accumulated Cost Amortization Net Cost Amortization Net Non-compete agreements $ 40,783 $ (6,927) $ 33,856 $ 40,898 $ (10,131) $ 30,767 Trademarks / trade names - definite lived 136,211 (55,124) 81,087 114,271 (41,275) 72,996 Trademarks / trade names - indefinite lived 2,848 - 2,848 2,963 - 2,963 Customer relationships and lists 713,437 (288,417) 425,020 638,276 (236,485) 401,791 Other 134,254 (55,885) 78,369 127,532 (43,078) 84,454 Total $ 1,027,533 $ (406,353) $ 621,180 $ 923,940 $ (330,969) $ 592,971 |
Investments and Other (Tables)
Investments and Other (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments And Other [Abstract] | |
Investments and other | December 31, December 26, 2016 2015 Investment in unconsolidated affiliates $ 299,249 $ 293,273 Non-current deferred foreign, state and local income taxes 16,685 58,249 Notes receivable (1) 27,492 27,509 Capitalized costs for internally generated software for resale 32,321 27,851 Distribution rights and exclusivity agreements, net of amortization 1,937 2,514 Acquisition related indemnification 51,294 32,828 Other long-term assets 13,812 12,376 Total $ 442,790 $ 454,600 (1) Long-term notes receivable carry interest rates ranging from 1.0% to 12.0% and are due in varying installments through December 31, 2030. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Private placement facilities | Amount of Borrowing Borrowing Date of Borrowing Outstanding Rate Due Date September 2, 2010 $ 100,000 3.79 % September 2, 2020 January 20, 2012 50,000 3.45 January 20, 2024 January 20, 2012 (1) 42,857 3.09 January 20, 2022 December 24, 2012 50,000 3.00 December 24, 2024 June 2, 2014 100,000 3.19 June 2, 2021 $ 342,857 (1) Annual repayments of approximately $7.1 million for this borrowing commenced on January 20, 2016. |
Schedule of long-term debt | December 31, December 26, 2016 2015 Private placement facilities $ 342,857 $ 350,000 U.S. trade accounts receivable securitization 350,000 90,000 Notes payable to banks at a weighted-average interest rate of 21.37% and 8.83% 47,957 5 Various collateralized and uncollateralized loans payable with interest, in varying installments through 2023 at interest rates ranging from 2.56% to 12.9% 35,150 38,215 Capital lease obligations (see Note 17) 5,416 2,863 Total 781,380 481,083 Less current maturities (65,923) (17,331) Total long-term debt $ 715,457 $ 463,752 |
Schedule of long-term debt maturities | 2017 $ 65,923 2018 32,184 2019 358,568 2020 107,904 2021 107,867 Thereafter 108,934 Total $ 781,380 |
Redeemable Noncontrolling Int34
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Temporary Equity Disclosure [Abstract] | |
Change in fair value of redeemable noncontrolling interests | December 31, December 26, December 27, 2016 2015 2014 Balance, beginning of period $ 542,194 $ 564,527 $ 497,539 Decrease in redeemable noncontrolling interests due to redemptions (72,729) (82,563) (105,383) Increase in redeemable noncontrolling interests due to business acquisitions 58,172 18,936 120,220 Net income attributable to redeemable noncontrolling interests 48,760 43,588 38,741 Dividends declared (32,973) (32,706) (23,346) Effect of foreign currency translation loss attributable to redeemable noncontrolling interests (2,652) (4,790) (4,080) Change in fair value of redeemable securities 66,864 35,202 40,836 Balance, end of period $ 607,636 $ 542,194 $ 564,527 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |
Accumulated other comprehensive income, net of applicable taxes | December 31, December 26, December 27, 2016 2015 2014 Attributable to Redeemable noncontrolling interests: Foreign currency translation adjustment $ (13,025) $ (10,373) $ (5,583) Attributable to noncontrolling interests: Foreign currency translation adjustment $ (113) $ (76) $ (36) Attributable to Henry Schein, Inc.: Foreign currency translation loss $ (296,212) $ (200,499) $ (71,294) Unrealized gain (loss) from foreign currency hedging activities (53) 939 (1,055) Unrealized investment loss - (2) (136) Pension adjustment loss (20,776) (20,377) (22,647) Accumulated other comprehensive loss $ (317,041) $ (219,939) $ (95,132) Total Accumulated other comprehensive loss $ (330,179) $ (230,388) $ (100,751) |
Components of comprehensive income, net of applicable taxes | December 31, December 26, December 27, 2016 2015 2014 Net income $ 556,395 $ 523,427 $ 505,436 Foreign currency translation loss (98,402) (134,035) (157,698) Tax effect - - - Foreign currency translation loss (98,402) (134,035) (157,698) Unrealized gain (loss) from foreign currency hedging activities (1,025) 2,147 (2,492) Tax effect 33 (153) 155 Unrealized gain (loss) from foreign currency hedging activities (992) 1,994 (2,337) Unrealized investment gain 2 134 629 Tax effect - - (250) Unrealized investment gain 2 134 379 Pension adjustment gain (loss) (947) 3,278 (10,222) Tax effect 548 (1,008) 2,781 Pension adjustment gain (loss) (399) 2,270 (7,441) Comprehensive income $ 456,604 $ 393,790 $ 338,339 |
Components of foreign currency translation gain (loss) by foreign currency | Foreign Currency Translation Gain (Loss) for the Year Ended FX Rate in USD December 31, December 31, December 26, Currency 2016 2016 2015 British Pound $ (53,723) 1.23 1.49 Euro (41,245) 1.05 1.10 Polish Zloty (3,849) 0.24 0.26 Canadian Dollar 3,345 0.74 0.72 Brazilian Real 2,856 0.31 0.25 Swiss Franc (2,365) 0.98 1.01 Australian Dollar (562) 0.72 0.73 All other currencies (2,859) Total $ (98,402) Foreign Currency Translation Gain (Loss) for the Year Ended FX Rate in USD December 26, December 26, December 27, Currency 2015 2015 2014 Euro $ (76,754) 1.10 1.22 Australian Dollar (19,864) 0.73 0.81 British Pound (15,404) 1.49 1.56 Canadian Dollar (10,071) 0.72 0.86 Brazilian Real (5,942) 0.25 0.37 Polish Zloty (3,281) 0.26 0.28 Swiss Franc 928 1.01 1.01 All other currencies (3,647) Total $ (134,035) Foreign Currency Translation Loss for the Year Ended FX Rate in USD December 27, December 27, December 28, Currency 2014 2014 2013 Euro $ (93,882) 1.22 1.38 Australian Dollar (15,710) 0.81 0.89 British Pound (19,150) 1.56 1.65 Canadian Dollar (6,891) 0.86 0.94 Polish Zloty (7,135) 0.28 0.33 Swiss Franc (7,154) 1.01 1.12 All other currencies (7,776) Total $ (157,698) |
Total comprehensive income, net of applicable taxes | December 31, December 26, December 27, 2016 2015 2014 Comprehensive income attributable to Henry Schein, Inc. $ 409,676 $ 354,251 $ 303,096 Comprehensive income attributable to noncontrolling interests 820 741 582 Comprehensive income attributable to Redeemable noncontrolling interests 46,108 38,798 34,661 Comprehensive income $ 456,604 $ 393,790 $ 338,339 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value - assets and liabilities measured and recognized on a recurring basis | December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Derivative contracts $ - $ 1,240 $ - $ 1,240 Total assets $ - $ 1,240 $ - $ 1,240 Liabilities: Derivative contracts $ - $ 931 $ - $ 931 Total liabilities $ - $ 931 $ - $ 931 Redeemable noncontrolling interests $ - $ - $ 607,636 $ 607,636 December 26, 2015 Level 1 Level 2 Level 3 Total Assets: Derivative contracts $ - $ 4,289 $ - $ 4,289 Total assets $ - $ 4,289 $ - $ 4,289 Liabilities: Derivative contracts $ - $ 2,477 $ - $ 2,477 Total liabilities $ - $ 2,477 $ - $ 2,477 Redeemable noncontrolling interests $ - $ - $ 542,194 $ 542,194 |
Plans of Restructuring (Tables)
Plans of Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve by type of cost | Facility Severance Closing Costs Costs Other Total Balance, December 28, 2013 $ 227 $ 484 $ - $ 711 Provision - - - - Payments and other adjustments (107) (183) - (290) Balance, December 27, 2014 $ 120 $ 301 $ - $ 421 Provision 26,742 5,706 2,483 34,931 Payments and other adjustments (17,759) (3,856) (1,672) (23,287) Balance, December 26, 2015 $ 9,103 $ 2,151 $ 811 $ 12,065 Provision 40,728 3,587 1,576 45,891 Payments and other adjustments (27,477) (3,284) (1,492) (32,253) Balance, December 31, 2016 $ 22,354 $ 2,454 $ 895 $ 25,703 |
Schedule of restructuring reserve by segment | Technology and Health Care Value-Added Distribution Services Total Balance, December 28, 2013 $ 711 $ - $ 711 Provision - - - Payments and other adjustments (290) - (290) Balance, December 27, 2014 $ 421 $ - $ 421 Provision 33,889 1,042 34,931 Payments and other adjustments (22,248) (1,039) (23,287) Balance, December 26, 2015 $ 12,062 $ 3 $ 12,065 Provision 44,082 1,809 45,891 Payments and other adjustments (30,906) (1,347) (32,253) Balance, December 31, 2016 $ 25,238 $ 465 $ 25,703 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted shares used to calculate earnings per share | Years Ended December 31, December 26, December 27, 2016 2015 2014 Basic 80,820 82,844 84,265 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 1,042 1,281 1,475 Diluted 81,862 84,125 85,740 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income before taxes, equity in earnings of affiliates and loss on sale of equity investment | Years ended December 31, December 26, December 27, 2016 2015 2014 Domestic $ 625,792 $ 591,320 $ 543,433 Foreign 130,043 129,438 165,879 Total $ 755,835 $ 720,758 $ 709,312 |
Provision for income taxes attributable to continuing operations | Years ended December 31, December 26, December 27, 2016 2015 2014 Current income tax expense: U.S. Federal $ 185,438 $ 162,948 $ 156,956 State and local 28,229 29,580 28,708 Foreign 41,357 25,104 31,038 Total current 255,024 217,632 216,702 Deferred income tax expense (benefit): U.S. Federal (18,090) (3,381) (2,389) State and local (4,809) 992 (2,682) Foreign (14,167) (3,852) 3,979 Total deferred (37,066) (6,241) (1,092) Total provision $ 217,958 $ 211,391 $ 215,610 |
Tax effects of temporary differences to deferred income tax asset (liability) | Years Ended December 31, December 26, 2016 2015 Current deferred income tax asset (liability): Inventory, premium coupon redemptions and accounts receivable valuation allowances $ - $ 25,403 Uniform capitalization adjustments to inventories - 10,719 Other current assets - 15,645 Current deferred income tax asset (1) - 51,767 Non-current deferred income tax asset (liability): Inventory, premium coupon redemptions and accounts receivable valuation allowances 29,422 - Uniform capitalization adjustments to inventories 10,632 - Property and equipment (15,882) (10,035) Stock-based compensation 41,677 35,942 Intangibles amortization (142,678) (218,097) Other non-current asset (liability) 23,836 (19,377) Net operating losses of foreign subsidiaries 44,493 37,455 Total non-current deferred tax liability (8,500) (174,112) Valuation allowance for non-current deferred tax assets (2) (26,403) (20,501) Net non-current deferred tax liability (1) (34,903) (194,613) Net deferred income tax liability $ (34,903) $ (142,846) (1) Certain deferred tax amounts do not have a right of offset and are therefore reflected on a gross basis in non-current assets and liabilities in our consolidated balance sheets. (2) Primarily relates to operating losses of acquired subsidiaries, the benefits of which are uncertain. Any future reductions of such valuation allowances will be reflected as a reduction of income tax expense in accordance with the provisions of ASC Topic 805, “Business Combinations.” |
Reconciliation of income tax provision at federal statutory rate to total income tax provision | Years ended December 31, December 26, December 27, 2016 2015 2014 Income tax provision at federal statutory rate $ 264,542 $ 252,265 $ 248,260 State income tax provision, net of federal income tax effect 11,236 14,627 11,381 Foreign income tax provision (18,036) (25,942) (22,960) Pass through noncontrolling interest (13,083) (12,463) (11,431) Valuation allowance 1,472 (5,006) (770) Unrecognized tax benefits and audit settlements 3,066 13,867 11,501 Interest expense related to loans (21,737) (22,415) (24,043) Other (9,502) (3,542) 3,672 Total income tax provision $ 217,958 $ 211,391 $ 215,610 |
Reconciliation of unrecognized tax benefits excluding the effect of deferred taxes | December 31, December 26, 2016 2015 Balance, beginning of period $ 77,600 $ 65,800 Additions based on current year tax positions 7,300 10,400 Additions based on prior year tax positions 20,400 19,600 Reductions based on prior year tax positions (900) (10,500) Reductions resulting from settlements with taxing authorities (9,700) (7,600) Reductions resulting from lapse in statutes of limitations (4,300) (100) Balance, end of period $ 90,400 $ 77,600 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business segment information | Years Ended December 31, December 26, December 27, 2016 2015 2014 Net Sales: Health care distribution (1): Dental $ 5,555,299 $ 5,276,407 $ 5,381,215 Animal health 3,253,095 2,921,624 2,898,612 Medical 2,337,661 2,072,915 1,742,685 Total health care distribution 11,146,055 10,270,946 10,022,512 Technology and value-added services (2) 425,613 358,773 348,878 Total $ 11,571,668 $ 10,629,719 $ 10,371,390 (1) Consists of consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and vitamins. (2) Consists of practice management software and other value-added products, which are distributed primarily to health care providers, and financial services on a non-recourse basis, e-services, continuing education services for practitioners, consulting and other services. Years ended December 31, December 26, December 27, 2016 2015 2014 Operating Income: Health care distribution $ 652,106 $ 626,574 $ 611,771 Technology and value-added services 119,468 107,398 103,371 Total $ 771,574 $ 733,972 $ 715,142 Income before taxes and equity in earnings of affiliates: Health care distribution $ 640,184 $ 617,582 $ 609,619 Technology and value-added services 115,651 103,176 99,693 Total $ 755,835 $ 720,758 $ 709,312 Depreciation and Amortization: Health care distribution $ 146,276 $ 141,184 $ 136,126 Technology and value-added services 23,504 17,943 16,112 Total $ 169,780 $ 159,127 $ 152,238 Income Tax Expense: Health care distribution $ 185,571 $ 180,133 $ 185,649 Technology and value-added services 32,387 31,258 29,961 Total $ 217,958 $ 211,391 $ 215,610 Interest Income: Health care distribution $ 13,086 $ 12,833 $ 13,585 Technology and value-added services 189 102 70 Total $ 13,275 $ 12,935 $ 13,655 Interest Expense: Health care distribution $ 31,845 $ 25,926 $ 23,916 Technology and value-added services 48 82 141 Total $ 31,893 $ 26,008 $ 24,057 Purchases of Fixed Assets: Health care distribution $ 66,943 $ 68,235 $ 74,955 Technology and value-added services 3,236 3,449 7,161 Total $ 70,179 $ 71,684 $ 82,116 As of December 31, December 26, December 27, 2016 2015 2014 Total Assets: Health care distribution $ 6,294,735 $ 6,129,285 $ 5,756,993 Technology and value-added services 435,661 375,455 381,814 Total $ 6,730,396 $ 6,504,740 $ 6,138,807 |
Operations by geographic area | 2016 2015 2014 Net Sales Long-Lived Assets Net Sales Long-Lived Assets Net Sales Long-Lived Assets United States $ 7,536,897 $ 1,803,689 $ 6,798,847 $ 1,739,546 $ 6,247,056 $ 1,771,719 Other 4,034,771 1,171,137 3,830,872 1,079,494 4,124,334 1,067,636 Consolidated total $ 11,571,668 $ 2,974,826 $ 10,629,719 $ 2,819,040 $ 10,371,390 $ 2,839,355 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation Related Costs [Abstract] | |
Summary of the stock option activity under the plans | Years Ended December 31, December 26, December 27, 2016 2015 2014 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 385 $ 56.00 684 $ 53.41 1,323 $ 51.53 Granted - - - - - - Exercised (208) 54.99 (299) 50.09 (639) 49.51 Forfeited - - - - - - Outstanding at end of year 177 $ 57.19 385 $ 56.00 684 $ 53.41 Options exercisable at end of year 177 $ 57.19 385 $ 56.00 684 $ 53.41 |
Intrinsic values | As of December 31, December 26, December 27, 2016 2015 2014 Stock options outstanding $ 16,681 $ 38,882 $ 57,421 Stock options exercisable 16,681 38,882 57,421 |
Status of non-vested restricted shares/units | Time-Based Restricted Stock/Units Weighted Average Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Outstanding at beginning of period 775 $ 99.29 Granted 175 155.06 Vested (239) 74.66 Forfeited (41) 124.22 Outstanding at end of period 670 $ 121.08 $ 151.71 Performance-Based Restricted Stock/Units Weighted Average Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Outstanding at beginning of period 930 $ 91.33 Granted 246 159.78 Vested (214) 90.58 Forfeited (37) 137.92 Outstanding at end of period 925 $ 108.09 $ 151.71 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases | 2017 $ 84,010 2018 67,633 2019 52,382 2020 40,749 2021 29,374 Thereafter 63,393 Total minimum operating lease payments $ 337,541 |
Capital leases | 2017 $ 1,517 2018 1,244 2019 738 2020 310 2021 266 Thereafter 1,834 Total minimum capital lease payments 5,909 Less: Amount representing interest at 1.38% to 19.15% (493) Total present value of minimum capital lease payments $ 5,416 |
Purchase commitments | 2017 $ 179,562 2018 116,394 2019 91,780 2020 101,280 2021 111,680 Thereafter 116,200 Total minimum inventory purchase commitment payments $ 716,896 |
Quarterly Information (Unaudi43
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly financial information (unaudited) | Quarters ended March 26, June 25, September 24, December 31, 2016 (1) 2016 (1) 2016 (1) 2016 (1) Net sales $ 2,712,956 $ 2,872,630 $ 2,865,148 $ 3,120,934 Gross profit 779,305 803,316 789,491 861,857 Restructuring costs 4,058 20,383 5,370 16,080 Operating income 176,194 180,677 200,721 213,982 Net income 124,533 133,098 145,291 153,473 Amounts attributable to Henry Schein, Inc.: Net income 113,752 120,097 133,713 139,216 Earnings per share attributable to Henry Schein, Inc.: Basic $ 1.39 $ 1.47 $ 1.65 $ 1.75 Diluted 1.37 1.46 1.63 1.73 Quarters ended March 28, June 27, September 26, December 26, 2015 (1) 2015 (1) 2015 (1) (2) 2015 (1) Net sales $ 2,463,646 $ 2,629,320 $ 2,685,835 $ 2,850,918 Gross profit 713,395 750,678 748,908 799,278 Restructuring costs 6,862 7,222 8,438 12,409 Operating income 161,367 183,030 188,882 200,693 Net income 111,580 129,608 141,396 140,843 Amounts attributable to Henry Schein, Inc.: Net income 103,447 117,928 127,735 129,948 Earnings per share attributable to Henry Schein, Inc.: Basic $ 1.24 $ 1.42 $ 1.54 $ 1.58 Diluted 1.22 1.40 1.52 1.56 (1) See Note 10 - "Plans of Restructuring" for details of the restructuring costs incurred during the fiscal years of 2016 and 2015. (2) See Note 12 - "Incomes Taxes" for details of the income tax benefit from a favorable tax ruling received by a subsidiary, net of noncontrolling interest, during the third quarter of 2015. |
Supplemental Cash Flow Inform44
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash paid for interest and income taxes | Years ended December 31, December 26, December 27, 2016 2015 2014 Interest $ 29,391 $ 24,033 $ 22,285 Income taxes 205,196 180,897 208,272 |
Significant Accounting Polici45
Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Fiscal year duration | 372 days | 365 days | 365 days |
Outstanding checks in excess of funds on deposit classified as accounts payable | $ 98,500,000 | $ 54,400,000 | |
Direct shipping and handling costs | 86,200,000 | 78,700,000 | $ 78,400,000 |
Advertising and promotional costs | 18,400,000 | 19,200,000 | $ 18,400,000 |
Amount of deferred direct marketing expenses included in other current assets | $ 3,500,000 | $ 4,400,000 | |
Percentage ownership of subsidiaries included in consolidated tax return | 80.00% | 80.00% | 80.00% |
Business combination, contingent consideration arrangements, change in amount of contingent consideration, liability | |||
Goodwill impairment loss | 0 | 0 | 0 |
Total distribution network costs | $ 84,400,000 | $ 70,400,000 | $ 64,500,000 |
Minimum [Member] | |||
Fiscal year duration | 365 days | ||
Maximum [Member] | |||
Fiscal year duration | 372 days |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 864,744 | $ 796,580 | |
Less accumulated depreciation and amortization | (530,838) | (478,104) | |
Property and equipment, net | 333,906 | 318,476 | |
Property and equipment related depreciation expense | 63,800 | 60,200 | $ 57,600 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 19,438 | 18,762 | |
Buildings and permanent improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 127,097 | 117,674 | |
Property and equipment, average useful life (in years) | 40 years | ||
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 95,048 | 89,766 | |
Machinery and warehouse equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 121,395 | 117,068 | |
Machinery and warehouse equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, average useful life (in years) | 5 years | ||
Machinery and warehouse equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, average useful life (in years) | 10 years | ||
Furniture, fixtures and other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 129,444 | 114,304 | |
Furniture, fixtures and other [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, average useful life (in years) | 3 years | ||
Furniture, fixtures and other [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, average useful life (in years) | 10 years | ||
Computer equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 372,322 | $ 339,006 | |
Computer equipment and software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, average useful life (in years) | 3 years | ||
Computer equipment and software [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, average useful life (in years) | 10 years |
Goodwill and Other Intangible47
Goodwill and Other Intangibles, Net - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,907,593 | $ 1,884,123 |
Adjustments to goodwill: Acquisitions | 145,805 | 71,534 |
Adjustments to goodwill: Foreign currency translation | (33,658) | (48,064) |
Ending balance | 2,019,740 | 1,907,593 |
Health Care Distribution [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,742,022 | 1,710,554 |
Adjustments to goodwill: Acquisitions | 116,640 | 66,070 |
Adjustments to goodwill: Foreign currency translation | (27,127) | (34,602) |
Ending balance | 1,831,535 | 1,742,022 |
Technology and Value-Added Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 165,571 | 173,569 |
Adjustments to goodwill: Acquisitions | 29,165 | 5,464 |
Adjustments to goodwill: Foreign currency translation | (6,531) | (13,462) |
Ending balance | $ 188,205 | $ 165,571 |
Goodwill and Other Intangible48
Goodwill and Other Intangibles, Net - Other Intangibles (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Other intangible assets cost | $ 1,027,533 | $ 923,940 |
Other intangible assets net | 621,180 | 592,971 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Accumulated amortization | (406,353) | (330,969) |
Trademarks and tradenames [Member] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-lived intangibles | 2,848 | 2,963 |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 40,783 | 40,898 |
Accumulated amortization | (6,927) | (10,131) |
Net | $ 33,856 | 30,767 |
Non-compete agreements [Member] | Weighted average [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Average useful life (in years) | 4 years 2 months 12 days | |
Trademarks and tradenames [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 136,211 | 114,271 |
Accumulated amortization | (55,124) | (41,275) |
Net | $ 81,087 | 72,996 |
Trademarks and tradenames [Member] | Weighted average [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Average useful life (in years) | 7 years 9 months 18 days | |
Customer relationships and lists [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 713,437 | 638,276 |
Accumulated amortization | (288,417) | (236,485) |
Net | $ 425,020 | 401,791 |
Customer relationships and lists [Member] | Weighted average [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Average useful life (in years) | 10 years 9 months 18 days | |
Other intangibles assets [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 134,254 | 127,532 |
Accumulated amortization | (55,885) | (43,078) |
Net | $ 78,369 | $ 84,454 |
Goodwill and Other Intangible49
Goodwill and Other Intangibles, Net - Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to definite-lived intangible assets | $ 97.2 | $ 91.9 | $ 89.6 |
Annual amortization expense expected for 2017 | 104.9 | ||
Annual amortization expense expected for 2018 | 98.4 | ||
Annual amortization expense expected for 2019 | 91.1 | ||
Annual amortization expense expected for 2020 | 82.7 | ||
Annual amortization expense expected for 2021 | $ 71.2 |
Investments and Other (Details)
Investments and Other (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Investments And Other [Abstract] | |||
Investments in unconsolidated affiliates | $ 299,249 | $ 293,273 | |
Non-current deferred foreign, state and local income taxes | 16,685 | 58,249 | |
Notes receivable | 27,492 | 27,509 | |
Capitalized costs for internally generated software for resale | 32,321 | 27,851 | |
Distribution rights and exclusivity agreements, net of amortization | 1,937 | 2,514 | |
Acquisition related indemnification | 51,294 | 32,828 | |
Other long-term assets | 13,812 | 12,376 | |
Total | 442,790 | 454,600 | |
Amortization of other long-term assets | $ 8,700 | $ 7,000 | $ 5,000 |
Investments and Other - Notes R
Investments and Other - Notes Receivable Items (Details) - Financing Receivable [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Latest maturity date of varying installments of long-term notes receivable | Dec. 31, 2030 |
Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Long-term notes receivable interest rate (as a percent) | 1.00% |
Maximum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Long-term notes receivable interest rate (as a percent) | 12.00% |
Debt - Bank Credit Lines (Detai
Debt - Bank Credit Lines (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Line of Credit Facility [Line Items] | ||
Weighted average interest rate on borrowings under credit lines at period end (as a percent) | 1.61% | 1.21% |
Revolving credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility borrowing capacity | $ 500 | |
Additional credit available under expansion feature of revolving credit facility | $ 200 | |
Revolving credit facility expiration date | Sep. 22, 2019 | |
Line of credit facility, amount outstanding | $ 65 | $ 40 |
Outstanding letters of credit provided to third parties | 13 | 11.4 |
Various other short-term bank credit lines [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, amount outstanding | $ 372.5 | $ 288.6 |
Debt - Long-term (Details)
Debt - Long-term (Details) $ in Thousands | Jan. 20, 2016USD ($) | Sep. 22, 2014USD ($) | Feb. 21, 2013USD ($) | Dec. 31, 2016USD ($) | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Jun. 01, 2016USD ($) | Apr. 17, 2013USD ($) | Apr. 30, 2012USD ($)company | Aug. 10, 2010USD ($)company |
Debt Instrument [Line Items] | ||||||||||
Debt instrument, amount repaid | $ 15,381 | $ 201,203 | $ 228,407 | |||||||
Long-term debt and capital lease obligations including current maturities | 781,380 | 481,083 | ||||||||
Less current maturities | (65,923) | (17,331) | ||||||||
Total long-term debt | 715,457 | 463,752 | ||||||||
Henry Schein Animal Health debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, amount repaid | $ 220,000 | |||||||||
Private placement facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, maximum borrowing capacity | 975,000 | $ 400,000 | ||||||||
Debt Instrument additional borrowing capacity | $ 200,000 | $ 375,000 | ||||||||
Number of insurance companies providing private placement facilities (in number of insurance companies) | company | 1 | 2 | ||||||||
Due date | Sep. 22, 2017 | |||||||||
Long-term debt and capital lease obligations including current maturities | $ 342,857 | 350,000 | ||||||||
Private placement facilities [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term of issuances under private placement facilities | 5 years | |||||||||
Private placement facilities [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term of issuances under private placement facilities | 15 years | |||||||||
Average term of issuances under private placement facilities | 12 years | |||||||||
Private placement facilities [Member] | Private placement facilities maturing in September 2020 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Date of borrowing | Sep. 2, 2010 | |||||||||
Due date | Sep. 2, 2020 | |||||||||
Long-term debt and capital lease obligations including current maturities | $ 100,000 | |||||||||
Debt instrument, interest rate, stated percentage (as a percent) | 3.79% | |||||||||
Private placement facilities [Member] | Private placement facilities maturing in January 2024 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Date of borrowing | Jan. 20, 2012 | |||||||||
Due date | Jan. 20, 2024 | |||||||||
Long-term debt and capital lease obligations including current maturities | $ 50,000 | |||||||||
Debt instrument, interest rate, stated percentage (as a percent) | 3.45% | |||||||||
Private placement facilities [Member] | Private placement facilities maturing in January 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Date of borrowing | Jan. 20, 2012 | |||||||||
Due date | Jan. 20, 2022 | |||||||||
Private placement facility, amount of periodic repayments | $ 7,100 | |||||||||
Private placement facility, repayment frequency | Annual | |||||||||
Long-term debt and capital lease obligations including current maturities | $ 42,857 | |||||||||
Debt instrument, interest rate, stated percentage (as a percent) | 3.09% | |||||||||
Private placement facilities [Member] | Private placement facilities maturing in December 2024 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Date of borrowing | Dec. 24, 2012 | |||||||||
Due date | Dec. 24, 2024 | |||||||||
Long-term debt and capital lease obligations including current maturities | $ 50,000 | |||||||||
Debt instrument, interest rate, stated percentage (as a percent) | 3.00% | |||||||||
Private placement facilities [Member] | Private placement facilities maturing in June 2021 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Date of borrowing | Jun. 2, 2014 | |||||||||
Due date | Jun. 2, 2021 | |||||||||
Long-term debt and capital lease obligations including current maturities | $ 100,000 | |||||||||
Debt instrument, interest rate, stated percentage (as a percent) | 3.19% | |||||||||
U.S. trade accounts receivable securitization [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, maximum borrowing capacity | $ 350,000 | $ 300,000 | ||||||||
Long-term debt and capital lease obligations including current maturities | $ 350,000 | $ 90,000 | ||||||||
Pricing commitment period | 3 years | |||||||||
Debt instrument, interest rate at period end | 1.76% | 1.15% | ||||||||
Commitment fee for facility usage - facility limit greater than or equal to fifty percent usage (as a percent) | 0.30% | |||||||||
Commitment fee for facility usage - facility limit less than fifty percent usage (as a percent) | 0.35% | |||||||||
Debt instrument borrowing percentage of facility used for calculating commitment fee (as a percent) | 50.00% | |||||||||
U.S. trade accounts receivable securitization [Member] | Asset backed commercial paper rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, variable rate basis at period end | 1.01% | 0.40% | ||||||||
Debt instrument, basis spread on variable rate | 0.75% | 0.75% | ||||||||
Notes payable to banks [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt and capital lease obligations including current maturities | $ 47,957 | $ 5 | ||||||||
Debt instrument, interest rate, weighted-average percentage (as a percent) | 21.37% | 8.83% | ||||||||
Various collateralized and uncollateralized long-term loans payable with interest, in varying installments [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt and capital lease obligations including current maturities | $ 35,150 | $ 38,215 | ||||||||
Various collateralized and uncollateralized long-term loans payable with interest, in varying installments [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage (as a percent) | 2.56% | |||||||||
Various collateralized and uncollateralized long-term loans payable with interest, in varying installments [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage (as a percent) | 12.90% | |||||||||
Capital lease obligations [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt and capital lease obligations including current maturities | $ 5,416 | $ 2,863 | ||||||||
Capital lease obligations [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage (as a percent) | 1.38% | |||||||||
Capital lease obligations [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage (as a percent) | 19.15% |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Maturities of Long-term Debt [Abstract] | ||
2,017 | $ 65,923 | |
2,018 | 32,184 | |
2,019 | 358,568 | |
2,020 | 107,904 | |
2,021 | 107,867 | |
Thereafter | 108,934 | |
Long-term debt and capital lease obligations including current maturities | $ 781,380 | $ 481,083 |
Redeemable Noncontrolling Int55
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Components of the change in the redeemable noncontrolling interests [Abstract] | |||
Balance, beginning of period | $ 542,194 | $ 564,527 | $ 497,539 |
Decrease in redeemable noncontrolling interests due to redemptions | (72,729) | (82,563) | (105,383) |
Increase in redeemable noncontrolling interests due to business acquisitions | 58,172 | 18,936 | 120,220 |
Net income attributable to redeemable noncontrolling interests | 48,760 | 43,588 | 38,741 |
Dividends declared | (32,973) | (32,706) | (23,346) |
Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests | (2,652) | (4,790) | (4,080) |
Change in fair value of redeemable securities | 66,864 | 35,202 | 40,836 |
Balance, end of period | $ 607,636 | $ 542,194 | $ 564,527 |
Comprehensive Income - Accumula
Comprehensive Income - Accumulated Other Comprehensive Income and Comprehensive Income Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Attributable to Redeemable noncontrolling interests: | |||||||||||
Foreign currency translation adjustment | $ (13,025) | $ (10,373) | $ (13,025) | $ (10,373) | $ (5,583) | ||||||
Attributable to noncontrolling interests: | |||||||||||
Foreign currency translation adjustment | (113) | (76) | (113) | (76) | (36) | ||||||
Attributable to Henry Schein, Inc.: | |||||||||||
Foreign currency translation gain (loss) | (296,212) | (200,499) | (296,212) | (200,499) | (71,294) | ||||||
Unrealized gain (loss) from foreign currency hedging activities | (53) | 939 | (53) | 939 | (1,055) | ||||||
Unrealized investment gain (loss) | 0 | (2) | 0 | (2) | (136) | ||||||
Pension adjustment gain (loss) | (20,776) | (20,377) | (20,776) | (20,377) | (22,647) | ||||||
Accumulated other comprehensive income (loss) | (317,041) | (219,939) | (317,041) | (219,939) | (95,132) | ||||||
Total Accumulated other comprehensive income (loss) | (330,179) | (230,388) | (330,179) | (230,388) | (100,751) | ||||||
Components of comprehensive income [Abstract] | |||||||||||
Net income | $ 153,473 | $ 145,291 | $ 133,098 | $ 124,533 | $ 140,843 | $ 141,396 | $ 129,608 | $ 111,580 | 556,395 | 523,427 | 505,436 |
Foreign currency translation gain (loss) | (98,402) | (134,035) | (157,698) | ||||||||
Tax effect | 0 | 0 | 0 | ||||||||
Foreign currency translation gain (loss) | (98,402) | (134,035) | (157,698) | ||||||||
Unrealized gain (loss) from foreign currency hedging activities | (1,025) | 2,147 | (2,492) | ||||||||
Tax effect | 33 | (153) | 155 | ||||||||
Unrealized gain (loss) from foreign currency hedging activities | (992) | 1,994 | (2,337) | ||||||||
Unrealized investment gain (loss) | 2 | 134 | 629 | ||||||||
Tax effect | 0 | 0 | (250) | ||||||||
Unrealized investment gain (loss) | 2 | 134 | 379 | ||||||||
Pension adjustment gain (loss) | (947) | 3,278 | (10,222) | ||||||||
Tax effect | 548 | (1,008) | 2,781 | ||||||||
Pension adjustment gain (loss) | (399) | 2,270 | (7,441) | ||||||||
Comprehensive income | $ 456,604 | $ 393,790 | $ 338,339 |
Comprehensive Income - Foreign
Comprehensive Income - Foreign Currency Translation Gain (Loss) Components (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 28, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (98,402) | $ (134,035) | $ (157,698) | |
British Pound | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (53,723) | $ (15,404) | $ (19,150) | |
FX rate into USD | 1.23 | 1.49 | 1.56 | 1.65 |
Euro | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (41,245) | $ (76,754) | $ (93,882) | |
FX rate into USD | 1.05 | 1.1 | 1.22 | 1.38 |
Polish Zloty | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (3,849) | $ (3,281) | $ (7,135) | |
FX rate into USD | 0.24 | 0.26 | 0.28 | 0.33 |
Canadian Dollar | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ 3,345 | $ (10,071) | $ (6,891) | |
FX rate into USD | 0.74 | 0.72 | 0.86 | 0.94 |
Brazilian Real | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ 2,856 | $ (5,942) | ||
FX rate into USD | 0.31 | 0.25 | 0.37 | |
Swiss Franc | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (2,365) | $ 928 | $ (7,154) | |
FX rate into USD | 0.98 | 1.01 | 1.01 | 1.12 |
Australian Dollar | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (562) | $ (19,864) | $ (15,710) | |
FX rate into USD | 0.72 | 0.73 | 0.81 | 0.89 |
All other currencies | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (2,859) | $ (3,647) | $ (7,776) |
Comprehensive Income - Total Co
Comprehensive Income - Total Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Comprehensive Income Net Of Applicable Taxes [Abstract] | |||
Comprehensive income (loss) attributable to Henry Schein, Inc. | $ 409,676 | $ 354,251 | $ 303,096 |
Comprehensive income (loss) attributable to noncontrolling interests | 820 | 741 | 582 |
Comprehensive income (loss) attributable to Redeemable noncontrolling interests | 46,108 | 38,798 | 34,661 |
Comprehensive income (loss) | $ 456,604 | $ 393,790 | $ 338,339 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of debt | $ 1,218,900 | $ 809,700 | ||
Attributable To Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | 607,636 | 542,194 | $ 564,527 | $ 497,539 |
Fair value, measurements, recurring [Member] | ||||
Assets [Abstract] | ||||
Derivative contracts - assets | 1,240 | 4,289 | ||
Total assets | 1,240 | 4,289 | ||
Liabilities [Abstract] | ||||
Derivative contracts - liabilities | 931 | 2,477 | ||
Total liabilities | 931 | 2,477 | ||
Attributable To Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | 607,636 | 542,194 | ||
Fair value, measurements, recurring [Member] | Level 1 [Member] | ||||
Assets [Abstract] | ||||
Derivative contracts - assets | 0 | 0 | ||
Total assets | 0 | 0 | ||
Liabilities [Abstract] | ||||
Derivative contracts - liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Attributable To Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | 0 | 0 | ||
Fair value, measurements, recurring [Member] | Level 2 [Member] | ||||
Assets [Abstract] | ||||
Derivative contracts - assets | 1,240 | 4,289 | ||
Total assets | 1,240 | 4,289 | ||
Liabilities [Abstract] | ||||
Derivative contracts - liabilities | 931 | 2,477 | ||
Total liabilities | 931 | 2,477 | ||
Attributable To Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | 0 | 0 | ||
Fair value, measurements, recurring [Member] | Level 3 [Member] | ||||
Assets [Abstract] | ||||
Derivative contracts - assets | 0 | 0 | ||
Total assets | 0 | 0 | ||
Liabilities [Abstract] | ||||
Derivative contracts - liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Attributable To Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | $ 607,636 | $ 542,194 |
Business Acquisitions and Div60
Business Acquisitions and Divestiture - Acquisitions (Details) | Mar. 23, 2016USD ($) | Feb. 05, 2016USD ($) | Jan. 12, 2016USD ($) | Nov. 30, 2015USD ($) | Sep. 01, 2015USD ($) | Mar. 31, 2015USD ($) | Nov. 20, 2014USD ($) | Jun. 30, 2014USD ($) | Apr. 02, 2014USD ($) | Feb. 03, 2014USD ($)number | Dec. 30, 2013USD ($) | Feb. 03, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) |
Business Acquisition [Line Items] | |||||||||||||||
Business acquisition allocated initial goodwill amount | $ 2,019,740,000 | $ 1,907,593,000 | $ 1,884,123,000 | ||||||||||||
Vetstreet, Inc [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Acquired equity interest (as a percent) | 80.10% | ||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 40,000,000 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 17,900,000 | ||||||||||||||
Rxworks Inc [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 7,000,000 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 4,200,000 | ||||||||||||||
Dental Cremer S.A. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 70,000,000 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 37,500,000 | ||||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business acquisition allocated initial goodwill amount | $ 69,900,000 | 27,100,000 | $ 16,400,000 | ||||||||||||
J Marita [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Acquired equity interest (as a percent) | 50.00% | ||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 125,000,000 | ||||||||||||||
scil animal care company GmbH [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 83,000,000 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 3,500,000 | ||||||||||||||
Jorgen Kruuse A/S [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Acquired equity interest (as a percent) | 85.00% | ||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 90,000,000 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 20,700,000 | ||||||||||||||
Dental Trey (S.R.L.) [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 49,000,000 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 8,500,000 | ||||||||||||||
BioHorizons, Inc. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Acquired equity interest (as a percent) | 60.00% | ||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 115,000,000 | ||||||||||||||
Loan provided prior to completion of the acquisition, converted to intercompany loan and eliminated in consolidation upon completion | $ 145,000,000 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 143,700,000 | ||||||||||||||
Arseus NV [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Acquired equity interest (as a percent) | 100.00% | ||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 97,000,000 | ||||||||||||||
Number of businesses acquired | number | 5 | ||||||||||||||
Number of countries in which acquired business operates | number | 3 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 21,400,000 | ||||||||||||||
Medivet S.A. [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Acquired equity interest (as a percent) | 80.00% | ||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 80,000,000 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 18,700,000 | ||||||||||||||
SmartPak Equine, LLC [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Acquired equity interest (as a percent) | 60.00% | ||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 105,000,000 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 59,700,000 | ||||||||||||||
Cardinal Health, Inc. physician office-focused commercial organization of medical segment [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 230,000,000 | ||||||||||||||
Business acquisition allocated initial goodwill amount | $ 0 |
Business Acquisitions and Div61
Business Acquisitions and Divestiture - Equity Method Investment and Divestiture (Details) - Maravet S.A. [Member] $ in Millions | Jul. 10, 2015USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Acquired equity method investment interest (as a percent) | 50.00% |
Equity method investment, approximate annual sales | $ 23 |
Plans of Restructuring (Details
Plans of Restructuring (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 24, 2016USD ($) | Jun. 25, 2016USD ($) | Mar. 26, 2016USD ($) | Dec. 26, 2015USD ($) | Sep. 26, 2015USD ($) | Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Dec. 31, 2016USD ($)positions | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | |
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | $ 12,065 | $ 421 | $ 12,065 | $ 421 | $ 711 | ||||||
Provision | $ 16,080 | $ 5,370 | $ 20,383 | 4,058 | $ 12,409 | $ 8,438 | $ 7,222 | 6,862 | 45,891 | 34,931 | 0 |
Payments and other adjustments | (32,253) | (23,287) | (290) | ||||||||
Restructuring Reserve, ending balance | 25,703 | 12,065 | 25,703 | 12,065 | 421 | ||||||
Health Care Distribution [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | 12,062 | 421 | 12,062 | 421 | 711 | ||||||
Provision | 44,082 | 33,889 | 0 | ||||||||
Payments and other adjustments | (30,906) | (22,248) | (290) | ||||||||
Restructuring Reserve, ending balance | 25,238 | 12,062 | 25,238 | 12,062 | 421 | ||||||
Technology and Value-Added Services [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | 3 | 0 | 3 | 0 | 0 | ||||||
Provision | 1,809 | 1,042 | 0 | ||||||||
Payments and other adjustments | (1,347) | (1,039) | 0 | ||||||||
Restructuring Reserve, ending balance | 465 | 3 | 465 | 3 | 0 | ||||||
Severance costs [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | 9,103 | 120 | 9,103 | 120 | 227 | ||||||
Provision | 40,728 | 26,742 | 0 | ||||||||
Payments and other adjustments | (27,477) | (17,759) | (107) | ||||||||
Restructuring Reserve, ending balance | 22,354 | 9,103 | 22,354 | 9,103 | 120 | ||||||
Facility closing costs [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | 2,151 | 301 | 2,151 | 301 | 484 | ||||||
Provision | 3,587 | 5,706 | 0 | ||||||||
Payments and other adjustments | (3,284) | (3,856) | (183) | ||||||||
Restructuring Reserve, ending balance | 2,454 | 2,151 | 2,454 | 2,151 | 301 | ||||||
Other [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | $ 811 | $ 0 | 811 | 0 | 0 | ||||||
Provision | 1,576 | 2,483 | 0 | ||||||||
Payments and other adjustments | (1,492) | (1,672) | 0 | ||||||||
Restructuring Reserve, ending balance | $ 895 | $ 811 | $ 895 | $ 811 | $ 0 | ||||||
November 2014 restructuring initiative [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | positions | 900 | ||||||||||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 4.00% | ||||||||||
November 2014 restructuring initiative [Member] | Minimum [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Expected percentage of workforce eliminated (in hundredths) | 2.00% | 2.00% | |||||||||
November 2014 restructuring initiative [Member] | Maximum [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Expected percentage of workforce eliminated (in hundredths) | 3.00% | 3.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 80,820 | 82,844 | 84,265 |
Effect of dilutive securities: | |||
Stock options, restricted stock and restricted stock units (in shares) | 1,042 | 1,281 | 1,475 |
Diluted (in shares) | 81,862 | 84,125 | 85,740 |
Income Taxes - Income before Ta
Income Taxes - Income before Taxes and Equity in Earnings of Affiliates and Provisions for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income before equity method investments, income taxes and loss on sale of equity investment [Abstract] | |||
Domestic | $ 625,792 | $ 591,320 | $ 543,433 |
Foreign | 130,043 | 129,438 | 165,879 |
Income before taxes and equity in earnings of affiliates | 755,835 | 720,758 | 709,312 |
Current income tax expense: | |||
U.S. Federal | 185,438 | 162,948 | 156,956 |
State and local | 28,229 | 29,580 | 28,708 |
Foreign | 41,357 | 25,104 | 31,038 |
Total current | 255,024 | 217,632 | 216,702 |
Deferred income tax expense (benefit): | |||
U.S. Federal | (18,090) | (3,381) | (2,389) |
State and local | (4,809) | 992 | (2,682) |
Foreign | (14,167) | (3,852) | 3,979 |
Total deferred | (37,066) | (6,241) | (1,092) |
Total provision | $ 217,958 | $ 211,391 | $ 215,610 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabiltieis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Current deferred income tax assets [Abstract] | ||
Inventory, premium coupon redemptions and accounts receivable valuation allowances, current | $ 0 | $ 25,403 |
Uniform capitalization adjustments to inventories, current | 0 | 10,719 |
Other current assets, current | 0 | 15,645 |
Current deferred income tax asset | 0 | 51,767 |
Noncurrent deferred income tax assets [Abstract] | ||
Inventory, premium coupon redemptions and accounts receivable valuation allowances, noncurrent | 29,422 | 0 |
Uniform capitalization adjustments to inventories, noncurrent | 10,632 | 0 |
Property and equipment | (15,882) | (10,035) |
Stock-based compensation | 41,677 | 35,942 |
Intangibles amortization | (142,678) | (218,097) |
Other non-current liabilities | (19,377) | |
Other current assets, noncurrent | 23,836 | |
Net operating losses of foreign subsidiaries | 44,493 | 37,455 |
Total non-current deferred tax liability | (8,500) | (174,112) |
Deferred Tax Assets, Valuation Allowance, Noncurrent | (26,403) | (20,501) |
Net non-current deferred tax liability | (34,903) | (194,613) |
Net deferred income tax liability | $ (34,903) | $ (142,846) |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) - Foreign tax authority [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards subject to amortization | $ 8 |
Net operating loss carryforwards not subject to expiration | $ 153.4 |
Net operating loss carryforwards, year of expiration | Dec. 31, 2025 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax provision at federal statutory rate | $ 264,542 | $ 252,265 | $ 248,260 |
State income tax provision, net of federal income tax effect | 11,236 | 14,627 | 11,381 |
Foreign income tax provision | (18,036) | (25,942) | (22,960) |
Pass through noncontrolling interest | (13,083) | (12,463) | (11,431) |
Valuation allowance | 1,472 | (5,006) | (770) |
Unrecognized tax benefits | 3,066 | 13,867 | 11,501 |
Interest expense related to loans | (21,737) | (22,415) | (24,043) |
Other | (9,502) | (3,542) | 3,672 |
Total provision | $ 217,958 | $ 211,391 | $ 215,610 |
Effective tax rate (as a percent) | 28.80% | 29.30% | |
Income tax benefit - favorable tax petition resolution (subsidiary) | $ 6,300 | ||
Effective tax rate without the effect of income tax benefit (as a percent) | 30.20% | ||
Internal Revenue Service (IRS) [Member] | |||
Income Tax Examination [Line Items] | |||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ 4,500 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | ||
Cumulative amount of reinvested earnings | $ 937,000,000 | |
Unrecognized tax benefits | 107,400,000 | |
Unrecognized tax benefits that would affect the effective tax rate if recognized | 81,400,000 | |
Total interest | 17,100,000 | |
Total penalties | 0 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of period | 77,600,000 | $ 65,800,000 |
Additions based on current year tax positions | 7,300,000 | 10,400,000 |
Additions based on prior year tax positions | 20,400,000 | 19,600,000 |
Reductions based on prior year tax positions | (900,000) | (10,500,000) |
Reductions resulting from settlements with taxing authorities | (9,700,000) | (7,600,000) |
Reductions resulting from lapse in statutes of limitations | (4,300,000) | (100,000) |
Balance, end of period | $ 90,400,000 | $ 77,600,000 |
Concentrations of Risk (Details
Concentrations of Risk (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Top customer concentration risk [Member] | Sales revenue, net [Member] | Any single customer [Member] | Maximum [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage (as a percent) | 1.00% | 1.00% |
Supplier concentration risk [Member] | Purchases [Member] | Top ten health care distribution suppliers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage (as a percent) | 34.00% | 34.00% |
Supplier concentration risk [Member] | Purchases [Member] | Single largest supplier [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage (as a percent) | 6.00% | 7.00% |
Derivatives and Hedging Activ70
Derivatives and Hedging Activities (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum duration of foreign currency forward contracts | 18 months |
Segment and Geographic Data (De
Segment and Geographic Data (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($)number | Sep. 24, 2016USD ($) | Jun. 25, 2016USD ($) | Mar. 26, 2016USD ($) | Dec. 26, 2015USD ($) | Sep. 26, 2015USD ($) | Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Dec. 31, 2016USD ($)number | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | number | 2 | ||||||||||
Number of countries served globally | number | 33 | 33 | |||||||||
Net sales | $ 3,120,934 | $ 2,865,148 | $ 2,872,630 | $ 2,712,956 | $ 2,850,918 | $ 2,685,835 | $ 2,629,320 | $ 2,463,646 | $ 11,571,668 | $ 10,629,719 | $ 10,371,390 |
Operating income | 213,982 | $ 200,721 | $ 180,677 | $ 176,194 | 200,693 | $ 188,882 | $ 183,030 | $ 161,367 | 771,574 | 733,972 | 715,142 |
Income before taxes, equity in earnings of affiliates and loss on sale of equity investment | 755,835 | 720,758 | 709,312 | ||||||||
Depreciation and amortization | 169,780 | 159,127 | 152,238 | ||||||||
Income taxes | 217,958 | 211,391 | 215,610 | ||||||||
Interest income | 13,275 | 12,935 | 13,655 | ||||||||
Interest expense | 31,893 | 26,008 | 24,057 | ||||||||
Purchases of fixed assets | 70,179 | 71,684 | 82,116 | ||||||||
Total assets | 6,730,396 | 6,504,740 | 6,730,396 | 6,504,740 | 6,138,807 | ||||||
Health Care Distribution [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 11,146,055 | 10,270,946 | 10,022,512 | ||||||||
Operating income | 652,106 | 626,574 | 611,771 | ||||||||
Income before taxes, equity in earnings of affiliates and loss on sale of equity investment | 640,184 | 617,582 | 609,619 | ||||||||
Depreciation and amortization | 146,276 | 141,184 | 136,126 | ||||||||
Income taxes | 185,571 | 180,133 | 185,649 | ||||||||
Interest income | 13,086 | 12,833 | 13,585 | ||||||||
Interest expense | 31,845 | 25,926 | 23,916 | ||||||||
Purchases of fixed assets | 66,943 | 68,235 | 74,955 | ||||||||
Total assets | 6,294,735 | 6,129,285 | 6,294,735 | 6,129,285 | 5,756,993 | ||||||
Health Care Distribution [Member] | Dental [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 5,555,299 | 5,276,407 | 5,381,215 | ||||||||
Health Care Distribution [Member] | Animal Health [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,253,095 | 2,921,624 | 2,898,612 | ||||||||
Health Care Distribution [Member] | Medical [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,337,661 | 2,072,915 | 1,742,685 | ||||||||
Technology and Value-Added Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 425,613 | 358,773 | 348,878 | ||||||||
Operating income | 119,468 | 107,398 | 103,371 | ||||||||
Income before taxes, equity in earnings of affiliates and loss on sale of equity investment | 115,651 | 103,176 | 99,693 | ||||||||
Depreciation and amortization | 23,504 | 17,943 | 16,112 | ||||||||
Income taxes | 32,387 | 31,258 | 29,961 | ||||||||
Interest income | 189 | 102 | 70 | ||||||||
Interest expense | 48 | 82 | 141 | ||||||||
Purchases of fixed assets | 3,236 | 3,449 | 7,161 | ||||||||
Total assets | $ 435,661 | $ 375,455 | $ 435,661 | $ 375,455 | $ 381,814 |
Segment and Geographic Data - N
Segment and Geographic Data - Net Sales and Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 3,120,934 | $ 2,865,148 | $ 2,872,630 | $ 2,712,956 | $ 2,850,918 | $ 2,685,835 | $ 2,629,320 | $ 2,463,646 | $ 11,571,668 | $ 10,629,719 | $ 10,371,390 |
Long-Lived Assets | 2,974,826 | 2,819,040 | 2,974,826 | 2,819,040 | 2,839,355 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 7,536,897 | 6,798,847 | 6,247,056 | ||||||||
Long-Lived Assets | 1,803,689 | 1,739,546 | $ 1,803,689 | $ 1,739,546 | $ 1,771,719 | ||||||
United States [Member] | Geographic Concentration Risk [Member] | Sales revenue, net [Member] | Minimum [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk percentage (as a percent) | 10.00% | 10.00% | 10.00% | ||||||||
Locations other than the United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 4,034,771 | $ 3,830,872 | $ 4,124,334 | ||||||||
Long-Lived Assets | $ 1,171,137 | $ 1,079,494 | $ 1,171,137 | $ 1,079,494 | $ 1,067,636 |
Employee Benefit Plans - Stock-
Employee Benefit Plans - Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Compensation Related Costs [Abstract] | |||
Pre-tax share-based compensation expense | $ 58,200 | $ 44,600 | $ 45,900 |
After-tax share-based compensation expense | 41,400 | 31,500 | 31,900 |
Excess tax benefits | (463) | $ 2,199 | $ 5,886 |
Liability for cash settlement stock-based compensation awards | 800 | ||
Fair value adjustment for cash settlement stock-based compensation awards | $ 300 | ||
Weighted-average grant date fair value of stock-based awards granted before forfeitures (in dollars per share) | $ 167.8 | $ 140.8 | $ 119.45 |
Total unrecognized compensation cost related to non-vested awards | $ 85,900 | ||
Weighted-average period of recognition for unrecognized compensation costs on nonvested awards (in years) | 2 years | ||
Total cash received as a result of stock options exercises | $ 11,404 | $ 14,870 | $ 31,491 |
Stock option exercises tax benefits | $ 23,392 | $ 20,802 | $ 11,161 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Employee and director stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 385 | 684 | 1,323 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (208) | (299) | (639) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 177 | 385 | 684 |
Ending balance, options exercisable (in shares) | 177 | 385 | 684 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding at beginning of period (in dollars per share) | $ 56 | $ 53.41 | $ 51.53 |
Granted (in dollars per share) | 0 | 0 | 0 |
Exercised (in dollars per share) | 54.99 | 50.09 | 49.51 |
Forfeited (in dollars per share) | 0 | 0 | 0 |
Outstanding at end of period (in dollars per share) | 57.19 | 56 | 53.41 |
Ending balance, options exercisable (in dollars per share) | $ 57.19 | $ 56 | $ 53.41 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Stock option outstanding aggregate intrinsic value as of period end | $ 16,681 | $ 38,882 | $ 57,421 |
Stock option exercisable aggregate intrinsic value as of period end | $ 16,681 | $ 38,882 | $ 57,421 |
Restricted stock/units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of restricted stock that vested during the year (in dollars per share) | $ 163.71 | $ 143.2 | $ 119.36 |
Time-based restricted stock/units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance outstanding (in shares) | 775 | ||
Granted (in shares) | 175 | ||
Vested (in shares) | (239) | ||
Forfeited (in shares) | (41) | ||
Ending balance outstanding (in shares) | 670 | 775 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance outstanding (in dollars per share) | $ 99.29 | ||
Granted (in dollars per share) | 155.06 | ||
Vested (in dollars per share) | 74.66 | ||
Forfeited (in dollars per share) | 124.22 | ||
Ending balance outstanding (in dollars per share) | 121.08 | $ 99.29 | |
Intrinsic value (in dollars per share) | $ 151.71 | ||
Performance-based restricted stock/units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period over which earnings per share performance is measured against specified targets (in years) | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance outstanding (in shares) | 930 | ||
Granted (in shares) | 246 | ||
Vested (in shares) | (214) | ||
Forfeited (in shares) | (37) | ||
Ending balance outstanding (in shares) | 925 | 930 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance outstanding (in dollars per share) | $ 91.33 | ||
Granted (in dollars per share) | 159.78 | ||
Vested (in dollars per share) | 90.58 | ||
Forfeited (in dollars per share) | 137.92 | ||
Ending balance outstanding (in dollars per share) | 108.09 | $ 91.33 | |
Intrinsic value (in dollars per share) | $ 151.71 | ||
2013 Stock Incentive Plan, as amended [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to be granted (in shares) | 31,229 | ||
Shares available to be granted (in shares) | 4,678 | ||
2013 Stock Incentive Plan, as amended [Member] | Time-based restricted stock/units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of years for full vesting (in years) | 4 years | ||
2013 Stock Incentive Plan, as amended [Member] | Performance-based restricted stock/units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of years for full vesting (in years) | 3 years | ||
2015 Non-Employee Director Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to be granted (in shares) | 900 | ||
Shares available to be granted (in shares) | 141 | ||
2015 Non-Employee Director Stock Incentive Plan [Member] | Time-based restricted stock/units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of years for full vesting (in years) | 12 months |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Management [Member] | Deferred compensation bonus and commission plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation plan fair market value amount charged (credited) to operations | $ 1.7 | $ 0.1 | $ 0.7 |
Qualified 401K plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Amounts charged (credited) to operations | $ 34 | 31.5 | 28.6 |
Qualified 401K plan [Member] | Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum matching contributions as a percentage of participants' contributions (as a percent) | 100.00% | ||
Maximum participants' contributions as a percentage of their base compensation (as a percent) | 7.00% | ||
Allowable maximum percentage of contributions allocated to Henry Schein Stock Fund (as a percent) | 20.00% | ||
Supplemental executive retirement plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Amounts charged (credited) to operations | $ 0.3 | $ 1.5 | $ 1.9 |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases, Future Minimum Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2,017 | $ 84,010 | ||
2,018 | 67,633 | ||
2,019 | 52,382 | ||
2,020 | 40,749 | ||
2,021 | 29,374 | ||
Thereafter | 63,393 | ||
Total minimum operating lease payments | 337,541 | ||
Total rent expense | $ 79,600 | $ 76,000 | $ 76,100 |
Commitments and Contingencies77
Commitments and Contingencies - Capital Leases, Future Minimum Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Capital Leases, Future Minimum Payments Due [Abstract] | |
2,017 | $ 1,517 |
2,018 | 1,244 |
2,019 | 738 |
2,020 | 310 |
2,021 | 266 |
Thereafter | 1,834 |
Total minimum capital lease payments | 5,909 |
Less: Amounts representing interest | (493) |
Total present value of minimum capital lease payments | $ 5,416 |
Capital lease obligations [Member] | Minimum [Member] | |
Leases, Capital [Abstract] | |
Debt instrument, interest rate, stated percentage (as a percent) | 1.38% |
Capital lease obligations [Member] | Maximum [Member] | |
Leases, Capital [Abstract] | |
Debt instrument, interest rate, stated percentage (as a percent) | 19.15% |
Commitments and Contingencies78
Commitments and Contingencies - Unrecorded Unconditional Purchase Obligation (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Unrecorded Unconditional Purchase Obligation [Abstract] | |
2,017 | $ 179,562 |
2,018 | 116,394 |
2,019 | 91,780 |
2,020 | 101,280 |
2,021 | 111,680 |
Thereafter | 116,200 |
Total minimum inventory purchase commitment payments | $ 716,896 |
Commitments and Contingencies79
Commitments and Contingencies - Other Commitments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Employment, consulting and non-compete agreements [Member] | |
Other Commitment, Fiscal Year Maturity [Abstract] | |
2,017 | $ 16,300 |
2,018 | 3,800 |
2,019 | 2,300 |
2,020 | 1,100 |
2,021 | 1,000 |
Life-time consulting agreement [Member] | |
Other Commitment, Fiscal Year Maturity [Abstract] | |
Current compensation paid under lifetime consulting agreement | 500 |
Amount of increase effective every fifth year on lifetime consulting agreement | $ 25 |
Quarterly Information (Unaudi80
Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 3,120,934 | $ 2,865,148 | $ 2,872,630 | $ 2,712,956 | $ 2,850,918 | $ 2,685,835 | $ 2,629,320 | $ 2,463,646 | $ 11,571,668 | $ 10,629,719 | $ 10,371,390 |
Gross profit | 861,857 | 789,491 | 803,316 | 779,305 | 799,278 | 748,908 | 750,678 | 713,395 | 3,233,969 | 3,012,259 | 2,911,315 |
Restructuring costs | 16,080 | 5,370 | 20,383 | 4,058 | 12,409 | 8,438 | 7,222 | 6,862 | 45,891 | 34,931 | 0 |
Operating income | 213,982 | 200,721 | 180,677 | 176,194 | 200,693 | 188,882 | 183,030 | 161,367 | 771,574 | 733,972 | 715,142 |
Net income | 153,473 | 145,291 | 133,098 | 124,533 | 140,843 | 141,396 | 129,608 | 111,580 | 556,395 | 523,427 | 505,436 |
Amounts attributable to Henry Schein, Inc.: | |||||||||||
Net income | $ 139,216 | $ 133,713 | $ 120,097 | $ 113,752 | $ 129,948 | $ 127,735 | $ 117,928 | $ 103,447 | $ 506,778 | $ 479,058 | $ 466,077 |
Earnings per share attributable to Henry Schein, Inc.: | |||||||||||
Basic (in dollars per share) | $ 1.75 | $ 1.65 | $ 1.47 | $ 1.39 | $ 1.58 | $ 1.54 | $ 1.42 | $ 1.24 | $ 6.27 | $ 5.78 | $ 5.53 |
Diluted (in dollars per share) | $ 1.73 | $ 1.63 | $ 1.46 | $ 1.37 | $ 1.56 | $ 1.52 | $ 1.4 | $ 1.22 | $ 6.19 | $ 5.69 | $ 5.44 |
Supplemental Cash Flow Inform81
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest | $ 29,391 | $ 24,033 | $ 22,285 |
Income taxes | 205,196 | 180,897 | 208,272 |
Unrealized gain (loss) from foreign currency hedging activities | (1,025) | 2,147 | (2,492) |
Debt assumed as part of acquisitions | $ 63,800 | $ 5,000 | $ 3,300 |
Schedule II - Valuation and Q82
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance For Doubtful Accounts Sales Returns And Other [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 77,008 | $ 80,671 | $ 78,298 |
Charged to statement of income | 2,647 | 3,184 | 4,619 |
Charged to other accounts | 16,909 | 1,124 | 5,828 |
Deductions | (6,235) | (7,971) | (8,074) |
Balance at end of period | $ 90,329 | $ 77,008 | $ 80,671 |