Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 12, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Current Fiscal Year End Date | --12-29 | ||
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 | 151,403,703 | ||
Entity Public Float | $ 11,016,833,000 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 80,209 | $ 174,658 |
Accounts receivable, net of reserves of $60,533 and $53,832 | 1,603,711 | 1,522,807 |
Inventories, net | 1,970,742 | 1,933,803 |
Prepaid expenses and other | 520,558 | 454,752 |
Total current assets | 4,175,220 | 4,086,020 |
Property and equipment, net | 382,398 | 375,001 |
Goodwill | 2,820,295 | 2,301,331 |
Other intangibles, net | 584,244 | 669,641 |
Investments and other | 538,370 | 432,002 |
Total assets | 8,500,527 | 7,863,995 |
Current liabilities: | ||
Accounts payable | 1,227,209 | 1,153,012 |
Bank credit lines | 951,458 | 741,653 |
Current maturities of long-term debt | 8,955 | 16,659 |
Accrued expenses: | ||
Payroll and related | 279,764 | 272,998 |
Taxes | 172,165 | 188,873 |
Other | 579,276 | 455,780 |
Total current liabilities | 3,218,827 | 2,828,975 |
Long-term debt, net | 1,003,873 | 907,756 |
Deferred income taxes | 31,570 | 50,431 |
Other liabilities | 392,313 | 420,285 |
Total liabilities | 4,646,583 | 4,207,447 |
Redeemable noncontrolling interests | 312,156 | 832,138 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 1,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value, 480,000,000 shares authorized, 151,401,668 outstanding on December 29, 2018 and 240,000,000 shares authorized, 153,690,146 outstanding on December 30, 2017 | 1,514 | 1,537 |
Retained earnings | 3,208,589 | 2,940,029 |
Accumulated other comprehensive loss | (248,771) | (130,067) |
Total Henry Schein, Inc. stockholders' equity | 2,961,332 | 2,811,499 |
Noncontrolling interests | 580,456 | 12,911 |
Total stockholders' equity | 3,541,788 | 2,824,410 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 8,500,527 | $ 7,863,995 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Accounts receivable, reserves (in dollars) | $ 60,533 | $ 53,832 |
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) | 480,000,000 | 240,000,000 |
Common stock, shares outstanding (in shares) | 151,401,668 | 153,690,146 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 13,201,995 | $ 12,461,543 | $ 11,571,668 |
Cost of sales | 9,606,911 | 9,062,440 | 8,345,195 |
Gross profit | 3,595,084 | 3,399,103 | 3,226,473 |
Operating expenses: | |||
Selling, general and administrative | 2,701,876 | 2,534,409 | 2,409,008 |
Litigation settlements | 38,488 | 5,325 | 0 |
Transaction costs related to Animal Health spin-off | 38,756 | 0 | 0 |
Restructuring costs | 62,912 | 0 | 45,891 |
Operating income | 753,052 | 859,369 | 771,574 |
Other income (expense): | |||
Interest income | 21,236 | 17,553 | 13,275 |
Interest expense | (78,786) | (53,654) | (31,893) |
Other, net | (154) | (420) | 2,879 |
Total income before taxes and equity in earnings of affiliates | 695,348 | 822,848 | 755,835 |
Income taxes | (155,492) | (362,506) | (217,958) |
Equity in earnings of affiliates | 22,270 | 16,587 | 18,518 |
Loss on sale of equity investment | 0 | (17,636) | 0 |
Net income | 562,126 | 459,293 | 556,395 |
Less: Net income attributable to noncontrolling interests | (26,245) | (52,994) | (49,617) |
Net income attributable to Henry Schein, Inc. | $ 535,881 | $ 406,299 | $ 506,778 |
Earnings per share attributable to Henry Schein, Inc.: | |||
Basic (in dollars per share) | $ 3.51 | $ 2.59 | $ 3.14 |
Diluted (in dollars per share) | $ 3.49 | $ 2.57 | $ 3.1 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 152,656 | 156,787 | 161,641 |
Diluted (in shares) | 153,707 | 158,208 | 163,723 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 562,126 | $ 459,293 | $ 556,395 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gain (loss) | (136,356) | 191,886 | (98,402) |
Unrealized gain (loss) from foreign currency hedging activities | 626 | (729) | (992) |
Unrealized investment gain (loss) | (3) | (3) | 2 |
Pension adjustment gain (loss) | 3,033 | 3,933 | (399) |
Other comprehensive income (loss), net of tax | (132,700) | 195,087 | (99,791) |
Comprehensive income (loss) | 429,426 | 654,380 | 456,604 |
Comprehensive income attributable to noncontrolling interests: | |||
Net income | (26,245) | (52,994) | (49,617) |
Foreign currency translation (gain) loss | 13,996 | (8,113) | 2,689 |
Comprehensive income attributable to noncontrolling interests | (12,249) | (61,107) | (46,928) |
Comprehensive income (loss) attributable to Henry Schein, Inc. | $ 417,177 | $ 593,273 | $ 409,676 |
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. 26, 2015 | $ 2,886,814 | $ 1,648 | $ 206,550 | $ 2,895,997 | $ (219,939) | $ 2,558 |
Beginning Balance (in shares) at Dec. 26, 2015 | 164,830,640 | |||||
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 |
Change in fair value of redeemable securities | (66,864) | 0 | (66,864) | 0 | 0 | 0 |
Initial noncontrolling interests and adjustments related to business acquisitions | 4,943 | 0 | 0 | 0 | 0 | 4,943 |
Repurchase and retirement of common stock - Value | (550,024) | $ (70) | (128,956) | (420,998) | 0 | 0 |
Repurchase and retirement of common stock - Shares | (6,923,564) | |||||
Stock issued upon exercise of stock options, including tax benefit - Value | 34,796 | $ 4 | 34,792 | 0 | 0 | 0 |
Stock issued upon exercise of stock options, including tax benefit - Shares | 415,832 | |||||
Stock-based compensation expense - Value | 58,246 | $ 8 | 58,238 | 0 | 0 | 0 |
Stock-based compensation expense - Shares | 755,104 | |||||
Shares withheld for payroll taxes - Value | (29,114) | $ (2) | (29,112) | 0 | 0 | 0 |
Shares withheld for payroll taxes - Shares | (328,888) | |||||
Settlement of stock-based compensation awards - Value | 4,052 | $ 0 | 4,052 | 0 | 0 | 0 |
Settlement of stock-based compensation awards, shares | 55,886 | |||||
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 | $ 1,588 | 126,742 | 2,981,777 | (317,041) | 7,738 |
Ending Balance (in shares) at Dec. 31, 2016 | 158,805,010 | |||||
Net income (excluding amounts attributable to Redeemable noncontrolling interests) | 407,090 | $ 0 | 0 | 406,299 | 0 | 791 |
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) | 184,425 | 0 | 0 | 0 | 183,773 | 652 |
Unrealized gain (loss) from foreign currency hedging activities, net of tax impact | (729) | 0 | 0 | 0 | (729) | 0 |
Unrealized investment gain (loss), net of tax impact | (3) | 0 | 0 | 0 | (3) | 0 |
Pension adjustment gain (loss), net of tax impact | 3,933 | 0 | 0 | 0 | 3,933 | 0 |
Dividends paid | (546) | 0 | 0 | 0 | 0 | (546) |
Other adjustments | 399 | 0 | 23 | 0 | 0 | 376 |
Purchase of noncontrolling interests | (4,150) | 0 | 0 | 0 | 0 | (4,150) |
Change in fair value of redeemable securities | (162,729) | 0 | (162,729) | 0 | 0 | 0 |
Initial noncontrolling interests and adjustments related to business acquisitions | 8,050 | 0 | 0 | 0 | 0 | 8,050 |
Repurchase and retirement of common stock - Value | (450,000) | $ (59) | (97,205) | (352,736) | 0 | 0 |
Repurchase and retirement of common stock - Shares | (5,864,404) | |||||
Stock issued upon exercise of stock options, including tax benefit - Value | 5,266 | $ 2 | 5,264 | 0 | 0 | 0 |
Stock issued upon exercise of stock options, including tax benefit - Shares | 197,434 | |||||
Stock-based compensation expense - Value | 42,294 | $ 11 | 42,283 | 0 | 0 | 0 |
Stock-based compensation expense - Shares | 1,072,922 | |||||
Shares withheld for payroll taxes - Value | (44,776) | $ (5) | (44,771) | 0 | 0 | 0 |
Shares withheld for payroll taxes - Shares | (520,816) | |||||
Settlement of stock-based compensation awards - Value | (599) | $ 0 | (599) | 0 | 0 | 0 |
Settlement of stock-based compensation awards, shares | 0 | |||||
Deferred tax benefit arising from acquisition of noncontrolling interest in partnership | 35,681 | $ 0 | 35,681 | 0 | 0 | 0 |
Transfer of charges in excess of captial | 0 | 0 | 95,311 | (95,311) | 0 | 0 |
Ending Balance at Dec. 30, 2017 | $ 2,824,410 | $ 1,537 | 0 | 2,940,029 | (130,067) | 12,911 |
Ending Balance (in shares) at Dec. 30, 2017 | 153,690,146 | 153,690,146 | ||||
Net income (excluding amounts attributable to Redeemable noncontrolling interests) | $ 540,278 | $ 0 | 0 | 535,881 | 0 | 4,397 |
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) | (123,325) | 0 | 0 | 0 | (122,360) | (965) |
Unrealized gain (loss) from foreign currency hedging activities, net of tax impact | 626 | 0 | 0 | 0 | 626 | 0 |
Unrealized investment gain (loss), net of tax impact | (3) | 0 | 0 | 0 | (3) | 0 |
Pension adjustment gain (loss), net of tax impact | 3,033 | 0 | 0 | 0 | 3,033 | 0 |
Dividends paid | (656) | 0 | 0 | 0 | 0 | (656) |
Other adjustments | 694 | 0 | (19) | 0 | 0 | 713 |
Purchase of noncontrolling interests | (214) | 0 | 0 | 0 | 0 | (214) |
Change in fair value of redeemable securities | (148,919) | 0 | (148,919) | 0 | 0 | 0 |
Initial noncontrolling interests and adjustments related to business acquisitions | 564,270 | 0 | 0 | 0 | 0 | 564,270 |
Repurchase and retirement of common stock - Value | (200,000) | $ (25) | (36,206) | (163,769) | 0 | 0 |
Repurchase and retirement of common stock - Shares | (2,518,387) | |||||
Stock issued upon exercise of stock options, including tax benefit - Value | 3,076 | $ 1 | 3,075 | 0 | 0 | 0 |
Stock issued upon exercise of stock options, including tax benefit - Shares | 153,516 | |||||
Stock-based compensation expense - Value | 36,240 | $ 4 | 36,236 | 0 | 0 | 0 |
Stock-based compensation expense - Shares | 340,794 | |||||
Shares withheld for payroll taxes - Value | (18,143) | $ (3) | (18,140) | 0 | 0 | 0 |
Shares withheld for payroll taxes - Shares | (267,772) | |||||
Settlement of stock-based compensation awards - Value | (727) | $ 0 | (727) | 0 | 0 | 0 |
Settlement of stock-based compensation awards, shares | (3,371) | |||||
Deferred tax benefit arising from acquisition of noncontrolling interest in partnership | 58,554 | $ 0 | 58,554 | 0 | 0 | 0 |
Transfer of charges in excess of captial | 0 | 0 | 106,146 | (106,146) | 0 | 0 |
Ending Balance at Dec. 29, 2018 | $ 3,541,788 | $ 1,514 | 0 | 3,208,589 | (248,771) | 580,456 |
Ending Balance (in shares) at Dec. 29, 2018 | 151,401,668 | 151,401,668 | ||||
Cumulative impact of adopting new accounting standards | $ 2,594 | $ 0 | $ 0 | $ 2,594 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Net income attributable to redeemable noncontrolling interests | $ 21,848 | $ 52,203 | $ 48,760 |
Foreign currency translation (gain) loss | 13,031 | (7,461) | 2,652 |
Unrealized gain (loss) from foreign currency hedging activities, (tax benefit) tax | (396) | 786 | 33 |
Unrealized investment gain (loss), tax benefit (tax) | 0 | 1 | 0 |
Pension adjustment gain (loss), tax benefit (tax) | 1,179 | 314 | (548) |
Stock issued upon exercise of stock options, tax benefit | $ 0 | $ 0 | $ 23,392 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 562,126 | $ 459,293 | $ 556,395 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 207,560 | 193,072 | 169,780 |
Loss on sale of equity investment | 0 | 17,636 | 0 |
Stock-based compensation expense | 36,240 | 42,294 | 58,246 |
Provision for losses on trade and other accounts receivable | 15,105 | 9,370 | 2,647 |
Provision for (benefit from) deferred income taxes | (41,213) | 485 | (37,066) |
Equity in earnings of affiliates | (22,270) | (16,587) | (18,518) |
Distributions from equity affiliates | 21,311 | 23,157 | 20,351 |
Changes in unrecognized tax benefits | (650) | (2,318) | 6,013 |
Provision for (benefit from) transitional tax | (10,000) | 140,000 | 0 |
Other | (807) | 10,921 | 12,595 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (147,499) | (160,266) | (7,655) |
Inventories | (84,784) | (175,059) | (104,787) |
Other current assets | (92,059) | (85,759) | (22,657) |
Accounts payable and accrued expenses | 241,646 | 89,276 | 7,232 |
Net cash provided by operating activities | 684,706 | 545,515 | 642,576 |
Cash flows from investing activities: | |||
Purchases of fixed assets | (90,637) | (81,501) | (70,179) |
Payments related to equity investments and business acquisitions, net of cash acquired | (61,570) | (288,673) | (228,575) |
Proceeds from sale of equity investment | 1,000 | 34,048 | 0 |
Repayments from (borrowings for) loan to affiliate | (25,700) | 6,700 | (4,500) |
Other | (16,047) | (12,850) | (13,168) |
Net cash used in investing activities | (192,954) | (342,276) | (316,422) |
Cash flows from financing activities: | |||
Proceeds from bank borrowings | 210,741 | 302,941 | 98,748 |
Proceeds from issuance of long-term debt | 115,000 | 200,440 | 260,799 |
Debt issuance costs | (501) | (1,990) | (233) |
Principal payments for long-term debt | (28,042) | (60,050) | (15,381) |
Proceeds from issuance of stock upon exercise of stock options | 3,076 | 5,266 | 11,404 |
Payments for repurchases of common stock | (200,000) | (450,000) | (550,024) |
Payments for taxes related to shares withheld for employee taxes | (18,023) | (44,832) | (27,115) |
Excess tax benefits related to stock-based compensation | 0 | 0 | (463) |
Distributions to noncontrolling stockholders | (17,515) | (29,134) | (32,350) |
Acquisitions of noncontrolling interests in subsidiaries | (668,512) | (35,192) | (72,729) |
Net cash used in financing activities | (603,776) | (112,551) | (327,344) |
Effect of exchange rate changes on cash and cash equivalents | 17,575 | 21,589 | (8,515) |
Net change in cash and cash equivalents | (94,449) | 112,277 | (9,705) |
Cash and cash equivalents, beginning of period | 174,658 | 62,381 | 72,086 |
Cash and cash equivalents, end of period | $ 80,209 | $ 174,658 | $ 62,381 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
Overview and Significant 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, Ireland, Israel, I taly, Japan, Liechtenstein, Luxembourg, Malaysia, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovakia, South Africa, Spain, Sweden, Switzerland, Thailand, United Arab Emirates 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 . We consolidate a Variable Interest Entity ( “VIE”) where we hold a variable interest and are the primary beneficiary. The VIE is a trade accounts receivable securitization. We are the primary beneficiary because we have the power to direct activities that most significantly affect the economic perfo rmance and have the obligation to absorb the majority of the losses or benefits. The results of operations and financial position of this VIE are included in our consolidated financial statements. For the consolidated VIE, the trade accounts receivable t ransferred to the VIE are pledged as collateral to the related debt. The creditors have recourse to us for losses on these trade accounts receivable. For the years ended December 29, 2018 and December 30, 2017, trade accounts receivable that can only be u sed to settle obligations of this VIE were $ 422 million and $ 422 million, respectively, and the liabilities of the VIE where the creditors have recourse to us were $ 350 million and $ 350 million, respectively . 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 d uring 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 s ended December 29, 2018 and December 30, 2017 consisted of 52 weeks, and the year ended December 31, 2016 consisted of 53 weeks. Stock Split On August 16, 2017, we announced that our Board of Directors approved a two-for-one stock split of our common stock. Each Henry Schein, Inc. stockholder of record at the close of business on September 1, 2017 received a distribution of one additional share for every share held. T rading began on a split-adjusted basis on September 15, 2017. Revenue Recognition On December 31, 2017, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of the adoption date. Results for reporting periods beginning after December 30, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for those periods. Our revenue recognition accounting policies applied prior to adoption of Topic 606 are outlined i n the financial statements in our Annual Report on Form 10-K for the year ended December 30, 2017 . The disclosures included herein reflect our accounting policies under Topic 606. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we do the following: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when, or as, the entity satisfies a performance obligation. We generate revenue from the sale of dental, animal health and medical con sumable products, equipment (Healthcare distribution revenues) , software products and services and other sources (Technology and value-added services revenues) . Provisions for discounts, rebates to customers, customer returns and other contra revenue adjustments are included in the transaction price at contract inception by e stimating the most likely amount 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 at a point in time when control transfers to the customer. 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 control has transferred to the customer because we have no post-shipment obligations and this is when legal title and risks and rewards of ownership transfer to the customer and the point at wh ich we have an enforceable right to payment. Revenue derived from the sale of equipment is recognized when control transfers to the customer. This occurs when the equipment is delivered. Such sales typically entail scheduled deliveries of large equipme nt primarily by equipment service technicians. Some equipment sales require minimal installation, which is typically completed at the time of delivery. Our product generally carries standard warranty terms provided by the manufacturer, however, in instance s where we provide warranty labor services, the warranty costs are accrued in accordance with ASC 460 “Guarantees”. Revenue derived from the sale of software products is recognized when products are shipped to customers or made available electronically. Such software is generally 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 generally recognized o ver time using time elapsed as the input method that best depicts the transfer of control to the customer. Revenue derived from other sources, including freight charges, equipment repairs and financial services, is recognized when the related product re venue is recognized or when the services are provided. We apply the practical expedient to treat shipping and handling activities performed after the customer obtains control as fulfillment activities, rather than a separate performance obligation in the contract. Sales, value-add and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Certain of our revenue is derived from bundled arrangements that include multiple distinct performance obligations which are acc ounted for separately. When we sell software products together with related services (i.e., training and technical support), we allocate revenue to software using the residual method, using an estimate of the standalone selling price to estimate the fair value of the undelivered elements. There are no cases where revenue is deferred due to a lack of a standalone selling price. Bundled arrangements that include elements that are not considered software consist primarily of equipment and the related install ation service. We allocate revenue for such arrangements based on the relative selling prices of the goods or services. If an observable selling price is not available (i.e., we do not sell the goods or services separately), we use one of the following te chniques to estimate the standalone selling price: adjusted market approach; cost-plus approach; or the residual method. There is no specific hierarchy for the use of these methods, but the estimated selling price reflects our best estimate of what the s elling prices of each deliverable would be if it were sold regularly on a standalone basis taking into consideration the cost structure of our business, technical skill required, customer location and other market conditions See Note 15 for additional disclosures of disaggregated net sales and Note 16 for disclosures of net sales by segment and geographic data . Contract Balances Contract balances represent amounts presented in our consolidated balance sheet when either we have transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable, contract assets and contract liabilities. Accounts Receivable Accounts receivable are generally recognized when heath care distribution and technology and value-added services revenues are recognized. The carrying amount of a ccounts receivable is reduced by a valuation allowance that reflects our best estimate of the amounts that will not be collected. In addition to reviewing delinquent accounts receivable, we consider many factors in estimating our reserve, including histori cal 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 factors expected to affect collectability. Contract Assets Contract assets include amounts related to any conditional right to consideration for work completed but not billed as of the reporting date and generally represent amounts owed to us by customers, but not yet billed. Contract assets are transferred to accounts receivable when th e right becomes unconditional. The contract assets primarily relate to our bundled arrangements for the sale of equipment and consumables and sales of term software licenses. Current contract assets are included in Prepaid expenses and other and the non-c urrent contract assets are included in Investments and other within our consolidated balance sheet. Current and non-current contract asset balances as of December 29, 2018 and December 31, 2017 were not material. Contract Liabilities Contract liabilities are comprised of advance payments and upfront payments for service arrangements provided over time that are accounted for as deferred revenue amounts. Contract liabilities are transferred to revenue once the performance obligation has been satisfied. Cur rent contract liabilities are included in Accrued expenses: Other and the non-current contract liabilities are included in Other liabilities within our consolidated balance sheet. At December 31, 2017, the current portion of contract liabilities of $85.7 million was reported in Accrued expenses: Other, and $5.2 million related to non-current contract liabilities were reported in Other liabilities. During the year ended December 29, 2018, we recognized substantially all of the current contract liability am ounts that were previously deferred at December 31, 2017. At December 29, 2018, the current and non-current portion of contract liabilities were $83.6 million and $5.3 million, respectively. Deferred Commissions Sales commissions earned by our sales for ce that relate to long term arrangements are capitalized as costs to obtain a contract when the costs incurred are incremental and are expected to be recovered. Deferred sales commissions are amortized over the estimated customer relationship period. We a pply the practical expedient related to the capitalization of incremental costs of obtaining a contract, and recognize such costs as an expense when incurred if the amortization period of the assets that we would have recognized is one year or less. Sales Returns Sales returns are recognized as a reduction of revenue by the amount of expected returns and are recorded as refund liability within current liabilities. We estimate the amount of revenue expected to be reversed to calculate the sales return liab ility based on historical data for specific products, adjusted as necessary for new products. The allowance for returns is presented gross as a refund liability and we record an inventory asset (and a corresponding adjustment to cost of sales) for any goo ds or services that we expect to be returned. 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 $ 72.0 million and $ 83.6 million, primarily related to payments for inventory, were classified as accounts payable as of December 29, 2018 and December 30, 2017 . Inventories and Reserves Inventories consist primarily of finished goods and are valued at the lower of cost or net realizable value . 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 $ 102.1 million, $ 93.3 million and $ 84.0 million for the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 . Advertising and Promotional Costs We generally expense advertising and promotional costs as incurred. Total advertising and promotional expenses were $ 28.9 million, $ 15.7 million and $ 18.4 million for the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 . 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 incurr ed 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 deferred income tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Our accounting for the Tax Cuts and Jobs Act, enacted on December 22, 2017, is further discussed in Note 12 of “Notes to Consolidated Financial Statements.” We file a consol idated 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 h edge 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 inv entory purchase commitments with foreign suppliers. Our foreign currency forward agreements related to forecasted inventory purchase commitments are designated as cash flow hedges. For cash flow hedges, the effective portion of the changes in the fair v alue 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 transa ction 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 . 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 . 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 identifiable 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 relationships and lists and non-compete agreements), property, plant and equipment, deferred taxes and other current and long-term assets and liabilities. The estimated fair value of identifiable intangible assets is based on critical estimates, judgments and assumptions derived from: analysis of market conditions; discount rates ; discounted cash flows; customer retention rates; and estimated useful lives. Some prior owners of such acquired subsidiaries are eligible to receive additional purchase price cash consideration if cert ain financial targets are met. For the year s ended December 29, 2018 , December 30, 2017 and December 31, 2016 , there were no material adjustments recorded in our consolidated statement of income relating to changes in estimated contingent purchase price liabilities. Redeemable Noncontrolling Interests Some minority s tockholders 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 rede emable noncontrolling interests cannot go below the floor level. These adjustments do not impact the calculation of earnings per share. Noncontrolling Interests Noncontrolling interests represent our less than 50% ownership interest in an acquired subsi diary. Our net income is reduced by the portion of the subsidiaries net income that is attributable to noncontrolling interests. 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 29, 2018 and December 30, 2017 , and December 31, 2016 we tested goodwill for imp airment using a quantitative analysis consisting of 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 un its 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 l oss, if any, that we would record for such reporting 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 c ash 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 profits and operating profits and projected capital ex penditures. 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 th at are based upon future growth projections. 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 for ecasted 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 assess the potent ial 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 fac tors we consider important that could trigger an interim impairment review include: significant 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, w e record an impairment charge in our consolidated statements of income. For the year s ended December 29, 2018 , December 30, 2017 and December 31, 2016 , 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-liv ed 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 carryi ng 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 different practices of categorizing costs associated with d istribution networks throughout our industry, our gross margins may not necessarily be comparable to other distribution companies. Total distribution network costs were $ 87.3 million, $ 83.2 million and $ 79.4 million for the years ende d December 29, 2018 , December 30, 2017 and December 31, 2016 . 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) from foreign currency hedging activities, unrealized investment gain (loss) and pension adjustment gain (loss). Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, Accounting Standards Codification (“ASC”) 606 (“Topic 606”). We adopted the provisions of this standard as of December 31, 2017, on a modified retrospective basis. We applied the requirements of the new standard only to contracts that were not completed as of the adoption date. We recorded an immaterial adjustment to the opening balance of retained earnings for the adoption of Topic 606. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The impact of the new standard on our c onsolidated statements of income, which we expect to be immaterial on an ongoing basis, is primarily related to software sales and sales commissions and is described as follows: Software Sales For software licenses sold together with post contract suppor t (PCS), we previously deferred software revenue if it did not have vendor-specific evidence of fair value of the PCS. Under Topic 606, the concept of vendor-specific objective evidence is eliminated and there are no cases where revenue is deferred due to a lack of standalone selling price. In addition, we previously recognized revenue from term licenses ratably over the contract term. Under Topic 606, such licenses represent a right to use intellectual property and therefore require upfront recognition. Furthermore, certain upfront fees related to service arrangements were previously deferred and recognized over the estimated customer life. Under Topic 606, the period over which we will recognize these fees is reduced, as the upfront fee represents add itional contract price which will be allocated to the performance obligations in the contract and recognized as those performance obligations are satisfied, rather than being amortized over the estimated customer life. Based on the aforementioned changes, such software revenue will be recognized sooner than under the previous revenue recognition standard. Sales Commissions We previously recognized sales commissions as an expense when incurred. Under Topic 606, we defer such sales commissions as costs t o obtain a contract when the costs are incremental and expected to be recovered. Deferred sales commissions are amortized over the estimated customer relationship period. We apply the practical expedient to expense, as incurred, commissions with an expec ted amortization period of one year or less. The impact of adoption on our consolidated balance sheet and income statement was as follows: As of December 29, 2018 Balances Effect of As Without Adoption Change Balance Sheet Reported of Topic 606 Increase/(Decrease) Assets: Prepaid expenses and other $ 520,558 $ 520,778 $ (220) Investments and other 538,370 535,879 2,491 Liabilities: Accrued expenses -Taxes $ 172,165 $ 171,809 $ 356 Accrued expenses - Other 579,276 581,138 (1,862) Deferred income taxes 31,570 30,979 591 Other liabilities (long-term) 392,313 393,024 (711) Stockholders' equity: Retained earnings $ 3,208,589 $ 3,204,548 $ 4,041 Accumulated other comprehensive loss $ (248,771) $ (248,627) $ (144) Year Ended December 29, 2018 Balances Without Effect of Adoption Change Statement of Income As Reported of Topic 606 Increase/ (Decrease) Net sales: Dental $ 6,348,945 $ 6,348,945 $ - Animal Health 3,682,639 3,682,639 - Medical 2,661,166 2,661,166 - Total healthcare distribution $ 12,692,750 $ 12,692,750 $ - Technology and value-added services 509,245 508,939 306 Total $ 13,201,995 $ 13,201,689 $ 306 Costs and expenses: Cost of sales 9,606,911 9,606,911 - Selling, general and administrative 2,701,876 2,702,552 (676) Income taxes (155,492) (155,347) 145 Net income $ 562,126 $ 561,289 $ 837 Additional information related to Topic 606 can be found below in “Critical Accounting Policies and Estimates” as well as in Note 15 . In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes, Intra-Entity Transfers of Assets Other Than Inventory” (“Topic 740”). Topic 740 requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period which the transfer occurs. Previously, companies were required to defer the income tax effect s on intercompany transfer of assets until the asset has been sold to an outside party. On December 31, 2017, we adopted the guidance, which is effective for annual periods and related interim periods beginning after December 15, 2017 on a modified retrosp ective basis. As a result of the adoption of Topic 740, we have recorded an immaterial adjustment to the opening balance of retained earnings and a reduction to prepaid assets. The cumulative effect of the changes made to our consolidated balance sheet as of December 31, 2017 related to Topic 606 and Topic 740 were as follows: Balance at December 30, Adjustments Adjustments Balance at 2017 Due To Due To December 31, (As Reported) Topic 606 Topic 740 2017 Assets: Prepaid expenses and other $ 454,752 $ 119 $ (610) $ 454 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 29, 2018 | |
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 29, December 30, 2018 2017 Land $ 20,400 $ 21,019 Buildings and permanent improvements 144,407 143,250 Leasehold improvements 115,993 106,236 Machinery and warehouse equipment 150,672 138,478 Furniture, fixtures and other 151,999 149,136 Computer equipment and software 463,240 432,379 1,046,711 990,498 Less accumulated depreciation (664,313) (615,497) Property and equipment, net $ 382,398 $ 375,001 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 29, 2018 , December 30, 2017 and December 31, 2016 was $ 73.5 million, $ 67.3 million and $ 63.8 million. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018 and December 30, 2017 were as follows: Health Care Distribution Technology and Value-Added Services Total Balance as of December 31, 2016 $ 1,831,535 $ 188,205 $ 2,019,740 Adjustments to goodwill: Acquisitions 216,144 8,736 224,880 Foreign currency translation 48,915 7,796 56,711 Balance as of December 30, 2017 2,096,594 204,737 2,301,331 Adjustments to goodwill: Acquisitions 40,437 530,012 570,449 Foreign currency translation (46,590) (4,895) (51,485) Balance as of December 29, 2018 $ 2,090,441 $ 729,854 $ 2,820,295 Other intangible assets consisted of the following: December 29, 2018 December 30, 2017 Accumulated Accumulated Cost Amortization Net Cost Amortization Net Non-compete agreements $ 38,384 $ (9,224) $ 29,160 $ 41,758 $ (9,539) $ 32,219 Trademarks / trade names - definite lived 113,286 (59,038) 54,248 151,918 (76,497) 75,421 Customer relationships and lists 847,561 (409,301) 438,260 851,339 (355,327) 496,012 Product Development 79,363 (37,373) 41,990 77,958 (37,105) 40,853 Other 64,913 (44,327) 20,586 58,582 (33,446) 25,136 Total $ 1,143,507 $ (559,263) $ 584,244 $ 1,181,555 $ (511,914) $ 669,641 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 5.2 years as of December 29, 2018 . 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 8.2 years as of December 29, 2018 . Customer relationships and customer lists are definite-lived intangible assets that are amortized on a straight-line basis over a weighted-average period of app roximately 10.8 years as of December 29, 2018 . Product development is a definite-lived intangible asset that is amortized on a straight-line basis over a weighted-average period of approximately 10.1 years as of December 29, 2018 . Amortization expense related to definite-lived intangible assets for the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 was $ 123.3 million, $ 116.5 million and $ 98.2 million. The annual amortization expense expected to be recorded for existing intangibles assets for the years 2019 through 2023 is $ 115.7 million, $ 106.5 million, $ 93.7 million, $ 69.2 million and $ 59.6 millio n. |
Investments and Other
Investments and Other | 12 Months Ended |
Dec. 29, 2018 | |
Investments And Other [Abstract] | |
Investments and Other | Note 4 – Investments and Other Investments and other consisted of the following: December 29, December 30, 2018 2017 Investment in unconsolidated affiliates $ 283,091 $ 268,364 Non-current deferred foreign, state and local income taxes 83,242 10,962 Notes receivable (1) 66,652 35,015 Capitalized costs for internally generated software for resale 40,070 35,359 Distribution rights and exclusivity agreements, net of amortization 582 1,378 Acquisition related indemnification 47,828 65,558 Other long-term assets 16,905 15,366 Total $ 538,370 $ 432,002 (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 29, 2018 , December 30, 2017 and December 31, 2016 was $ 10.7 million, $ 9.3 million and $ 7.8 million. |
Debt
Debt | 12 Months Ended |
Dec. 29, 2018 | |
Debt [Abstract] | |
Debt | Note 5 – Debt Bank Credit Lines On April 18 , 201 7 , we entered into a new $ 75 0 million revolving credit agreement (the “Credit Agreement”) . This facility, which matures in April 2022 , replaced our $ 500 million revolving credit facility, which was scheduled to mature in September 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. On June 29, 2018, we amended the Credit Agreement to, among other things, (i) pe rmit the consummation of the Animal Health Spin-off (See Note 21) , (ii) provide for swing-line commitments in the amount of $ 75 million, and (iii) provide for the designation of subsidiary borrowers under the facility. 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 lie ns, indebtedness, significant corporate changes (including mergers), dispositions and certain restrictive agreements. A s of December 29, 2018 and December 30, 2017 , the borrowings outstanding on this revolving credit facility were $ 175.0 million and $ 320.0 million, respectively . As of December 29, 2018 and December 30, 2017 , there were $ 11.2 million and $ 11.3 million of letters of credit , respectively, provided to third parties under th is credit facility. As of December 29, 2018 and December 30, 2017 , we had various other short-term bank credit lines available, of which $ 376.5 million and $ 421.7 million, respectively, were outstanding. At December 29, 2018 and December 30, 2017 , borrowing s under all of our credit lines had a weighted average interest rate of 3.30 % and 2.27 %, respectively . Committed Loan Associated with Animal Health Spin-off On May 21, 2018, we obtained a $ 400 mill ion committed loan which matured on the earlier of (i) March 31, 2019 and (ii) the consummation of the Animal Health Spin-o ff. The proceeds of this loan were used, among other things, to fund our purchase of all of the equity interests in Butler Animal Health Holding Company, LLC (“BAHHC”) directly or indirectly owned by Darby Group Companies, Inc. (“Darby”) and certain other sellers pursuant to the terms of th at certain Amendment to Put Rights Agreements, dated as of April 20, 2018, by and among us, Darby, BAHHC and the individual sellers party thereto for an aggregate purchase price of $ 365 million. As of December 29, 2018 , the balance outstanding on this loan was $ 400 million and is included within the “Bank credit lines” caption within our consolidated balance sheet. At December 29, 2018 , the interest rate on this loan was 3. 38 %. Concurrent with the completion of the Animal Health Spin-off on February 7, 2 019, we re-paid the balance of this loan. Long-term debt Long-term debt consisted of the following: December 29, December 30, 2018 2017 Private placement facilities $ 628,189 $ 535,295 U.S. trade accounts receivable securitization 350,000 350,000 Various collateralized and uncollateralized loans payable with interest, in varying installments through 2023 at interest rates ranging from 2.61% to 5.01% at December 29, 2018 and ranging from 2.56% to 12.90% at December 30, 2017 29,491 34,027 Capital lease obligations (see Note 18) 5,148 5,093 Total 1,012,828 924,415 Less current maturities (8,955) (16,659) Total long-term debt $ 1,003,873 $ 907,756 Private Placement Facilities On September 15, 2017, we increased our available private placement facilities with three insurance companies to a total facility amount of $ 1 billion, and extended the expiration date to September 15, 2020. 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 15, 2020 . The facilities allow us to issue senior 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. On June 29, 2018, we amended and restated the above p rivate placement facilities to, among other things, (i) permit the consummation of the Animal H ealth Spin-off and (ii) provide for the issuance of notes in Euros, British Pounds and Australian Dollars, in addition to U.S. Dollars. The agreements provide, among other th ings, 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 contain 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 29, 2018 are presented in the following table: Amount of Date of Borrowing Borrowing 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) 28,571 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 June 16, 2017 100,000 3.42 June 16, 2027 September 15, 2017 100,000 3.52 September 15, 2029 January 2, 2018 100,000 3.32 January 2, 2028 Less: Deferred debt issuance costs (382) $ 628,189 (1) Annual repayments of approximately $7.1 million for this borrowing commenced on January 20, 2016. U.S. Trade Accounts Receivable Securitization We have a facility agreement with a bank, as agent, based on the securitization of our U.S. trade accounts receivable that is structured as an asset-backed securitization program with pricing committed for up to three years. 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 to $ 350 million. On July 6, 2017, we extended the expiration date of this facility agreement to April 29, 2020. The borrowings outstanding under this securitization facility were $ 350 .0 million and $ 350 .0 million as o f December 29, 2018 and December 30, 2017 , respectively . At December 29, 2018 , the interest rate on borrow ings under this facility was based on the asset-backed commercial paper rate of 2.66% plus 0. 75 % , for a combined rate of 3.41 %. At December 30, 2017 , the interest rate on borrowings under this facility was based on the asset-backed commercial paper rate o f 1.53% plus 0. 75 % , for a combined rate of 2.28 %. 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 balance sheet. As of December 29, 2018 , the aggregate amounts of long-ter m debt, including capital lease obligations and net of deferred debt issuance costs of $382, maturing in each of the next five years and thereafter are as follows: 2019 $ 8,955 2020 458,445 2021 108,050 2022 30,421 2023 3,671 Thereafter 403,286 Total $ 1,012,828 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Dec. 29, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Noncontrolling Interests | Note 6 – Redeemable Noncontrolling Interests Some minority s tockholders 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. ASC 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 29, 2018 , December 30, 2017 and December 31, 2016 are presented in the following table: December 29, December 30, December 31, 2018 2017 2016 Balance, beginning of period $ 832,138 $ 607,636 $ 542,194 Decrease in redeemable noncontrolling interests due to redemptions (669,947) (48,669) (72,729) Increase in redeemable noncontrolling interests due to business acquisitions 10,294 78,939 58,172 Net income attributable to redeemable noncontrolling interests 21,848 52,203 48,760 Dividends declared (18,065) (28,161) (32,973) Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests (13,031) 7,461 (2,652) Change in fair value of redeemable securities 148,919 162,729 66,864 Balance, end of period $ 312,156 $ 832,138 $ 607,636 Changes in the estimated redemption amounts of the noncontrolling interests subject to put options are adjusted at e ach 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 redeema ble 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. 29, 2018 | |
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. The following table summarizes our Accumulate d other comprehensive income, net of applicable taxes as of: December 29, December 30, December 31, 2018 2017 2016 Attributable to Redeemable noncontrolling interests: Foreign currency translation adjustment $ (18,595) $ (5,564) $ (13,025) Attributable to noncontrolling interests: Foreign currency translation adjustment $ (426) $ 539 $ (113) Attributable to Henry Schein, Inc.: Foreign currency translation loss $ (234,799) $ (112,439) $ (296,212) Unrealized loss from foreign currency hedging activities (156) (782) (53) Unrealized investment loss (6) (3) - Pension adjustment loss (13,810) (16,843) (20,776) Accumulated other comprehensive loss $ (248,771) $ (130,067) $ (317,041) Total Accumulated other comprehensive loss $ (267,792) $ (135,092) $ (330,179) The following table summarizes the components of comprehensive income, net of applicable taxes as follows: December 29, December 30, December 31, 2018 2017 2016 Net income $ 562,126 $ 459,293 $ 556,395 Foreign currency translation gain (loss) (136,356) 191,886 (98,402) Tax effect - - - Foreign currency translation gain (loss) (136,356) 191,886 (98,402) Unrealized gain (loss) from foreign currency hedging activities 1,022 (1,515) (1,025) Tax effect (396) 786 33 Unrealized gain (loss) from foreign currency hedging activities 626 (729) (992) Unrealized investment gain (loss) (3) (4) 2 Tax effect - 1 - Unrealized investment gain (loss) (3) (3) 2 Pension adjustment gain (loss) 4,212 4,247 (947) Tax effect (1,179) (314) 548 Pension adjustment gain (loss) 3,033 3,933 (399) Comprehensive income $ 429,426 $ 654,380 $ 456,604 Our financial statements are denominated in the U.S. Dollar currency. Fluctuations in the value 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 29, 2018 , December 30, 2017 and December 31, 2016 was i mpacted by changes in foreign currency exchange rates as follows: Foreign Currency Translation Gain (Loss) for the Year Ended FX Rate in USD December 29, December 29, December 30, Currency 2018 2018 2017 Euro $ (40,681) 1.14 1.20 Brazilian Real (27,313) 0.26 0.30 Australian Dollar (25,639) 0.70 0.78 British Pound (21,329) 1.26 1.35 Canadian Dollar (9,111) 0.73 0.80 Polish Zloty (5,025) 0.27 0.29 Swiss Franc (2,442) 1.01 1.03 All other currencies (4,816) Total $ (136,356) Foreign Currency Translation Gain (Loss) for the Year Ended FX Rate in USD December 30, December 30, December 31, Currency 2017 2017 2016 Euro $ 113,259 1.20 1.05 Brazilian Real (2,411) 0.30 0.31 Australian Dollar 15,124 0.78 0.72 British Pound 28,001 1.35 1.23 Canadian Dollar 9,403 0.80 0.74 Polish Zloty 11,058 0.29 0.24 Swiss Franc 5,544 1.03 0.98 All other currencies 11,908 Total $ 191,886 Foreign Currency Translation Gain (Loss) for the Year Ended FX Rate in USD December 31, December 31, December 26, Currency 2016 2016 2015 Euro $ (41,245) 1.05 1.10 Brazilian Real 2,856 0.31 0.25 Australian Dollar (562) 0.72 0.73 British Pound (53,723) 1.23 1.49 Canadian Dollar 3,345 0.74 0.72 Polish Zloty (3,849) 0.24 0.26 Swiss Franc (2,365) 0.98 1.01 All other currencies (2,859) Total $ (98,402) The following table summarizes our total comprehensive income, net of applicable taxes as follows: December 29, December 30, December 31, 2018 2017 2016 Comprehensive income attributable to Henry Schein, Inc. $ 417,177 $ 593,273 $ 409,676 Comprehensive income attributable to noncontrolling interests 3,432 1,443 820 Comprehensive income attributable to Redeemable noncontrolling interests 8,817 59,664 46,108 Comprehensive income $ 429,426 $ 654,380 $ 456,604 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value Measurements [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 29, 2018 and December 30, 2017 was estimated at $ 1,964.3 million and $ 1,666.1 million, respectively. Factors that we considered when estimating the fair value of our debt include market conditions, such as interest rates and credit spreads . 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 stockholders 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 29, 2018 and December 30, 2017 : December 29, 2018 Level 1 Level 2 Level 3 Total Assets: Derivative contracts $ - $ 12,533 $ - $ 12,533 Total assets $ - $ 12,533 $ - $ 12,533 Liabilities: Derivative contracts $ - $ 1,708 $ - $ 1,708 Total liabilities $ - $ 1,708 $ - $ 1,708 Redeemable noncontrolling interests $ - $ - $ 312,156 $ 312,156 December 30, 2017 Level 1 Level 2 Level 3 Total Assets: Derivative contracts $ - $ 11,799 $ - $ 11,799 Total assets $ - $ 11,799 $ - $ 11,799 Liabilities: Derivative contracts $ - $ 2,089 $ - $ 2,089 Total liabilities $ - $ 2,089 $ - $ 2,089 Redeemable noncontrolling interests $ - $ - $ 832,138 $ 832,138 |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 29, 2018 | |
Business Acquisitions [Abstract] | |
Business Acquisitions | Note 9 – Business Acquisitions The operating results of all acquisitions are reflected in our financial statements from their respective acquisition dates. On July 1, 2018, we closed on a joint venture with Internet Brands, a provider of web presence and online marketing software, to create a newly formed entity, Henry Schein One, LLC. The joint venture includes Henry Schein Practice Solutions products and services, as well as Henry Schein’s international dental practice management systems an d the dental businesses of Internet Brands. We own 74 % of the joint venture and Internet Brands owns the remaining 26 % noncontrolling interest, which is accounted for with in stockholders’ equity. In addition, Internet Brands received a freestanding and separately exercisable right to put their noncontrolling interest to Henry Schein, Inc. for fair value following the fifth anniversary of the effective date of the formation of the joint venture. Beginning with the second anniversary of the effective date of the formation of the joint venture, Henry Schein One will issue a fixed number of additional interests to Internet Brands through the fifth anniversary of the effective date, thereby increasing Internet Brands’ ownership by approximately 7.6 %. Interne t Brands will also be entitled to receive a fixed number of additional interests, in the aggregate up to approximately 1.6 % of the joint venture’s ownership, if certain operating targets are met by the joint venture in its fourth, fifth and sixth operating years. These additional shares are considered contingent consideration that are accounted for within stockholders’ equity; however these shares will not be allocated any net income of Henry Schein One until the shares vest or are earned by Internet Brand s. As a result of the transaction with Internet Brands, we recorded $ 567.6 million of noncontrolling interest within stockholders’ equity reflecting certain fair value methodology. Senior management from Henry Schein and Internet Brands serve on the bo ard of Henry Schein One. The goodwill recorded as part of the acquisition primarily reflects the value of future synergies. We allocated all of the goodwill to our Technology and value-added services reporting segment. As of December 29, 2018, the goodw ill associated with this transaction is $ 551.7 million. None of the goodwill recognized is deductible for income tax purposes, and as such, no deferred taxes have been recorded related to goodwill. Concurrent with the formation of Henry Schein One, LLC, we entered into a separate agreement with Internet Brands whereby (1) beginning July 1, 2023, Internet Brands will have the right to require Henry Schein to purchase all or a portion of Internet Brands ownership in terests in Henry Schein One, LLC for fair market value, and (2) beginning July 1, 2028, or earlier if certain events occur, Henry Schein will have the right to require Internet Brands to sell all or a portion of its ownership interests in Henry Schein One, LLC to Henry Schein for fair market value . We completed certain other acquisitions d uring the year ended December 29, 2018 , which were immaterial to our financial statements individually and in the aggregate . As of December 29, 2018, we recorded approximately $ 15.2 million of goodwill through p reliminary purchase price allocations for these acquisitions . Total acquisition transaction costs incurred in the year ended December 29, 2018 were immaterial to our financial results. On May 2, 2017, we announced the acquis ition of Southern Anesthesia and Surgical, Inc. (SAS), a leading U.S. distributor of anesthesia and surgical supplies to oral surgeons, dental anesthesiologists and periodontists. SAS had sales in 2016 of approximately $72 million. As of December 29, 201 8, we have recorded $74.2 million of goodwill related to this acquisition. On August 28, 2017, we announced the acquisition of Merritt Veterinary Supplies, Inc. (Merritt), an independent supplier of animal health products. Merritt had sales in 2016 of ap proximately $115 million. As of December 29, 2018, we have recorded $34.4 million of goodwill related to this acquisition. We completed certain other acquisitions d uring the year ended December 30, 2017 , which were immaterial to our financial statements individually and in the aggregate . As of December 29, 2018, we recorded approximately $ 43.2 million of goodwill through preliminary purchase price allocations for these acquisitions . Total acquisition transaction costs incurred in the year ended Decembe r 30, 2017 were immaterial to our financial results. 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 of December 29, 2018, we have recorded $21.4 million of goodwil l related to this acquisition. On February 3, 2016, we announced the completion of the acquisition of RxWorks, Inc., a leading provider of veterinary practice management software primarily to customers in Australia, New Zealand, the United Kingdom, the Ne therlands and other countries around the world. The company had sales for the 12 months ended June 30, 2015 of approximately $7 million. As of December 29, 2018, we have recorded $8.1 million of goodwill related to this acquisition. On February 5, 2016 , we announced that we 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 bus iness of Cremer S.A., had 2015 sales of approximately $70 million. On December 28, 2016, we completed this transaction. As of December 29, 2018, we have recorded $63.2 million of goodwill related to this acquisition. On March 23, 2016, we announced that we entered into a definitive agreement with J. Morita Corp. to expand our presence in Japan. This transaction was completed on June 20, 2016 and, as a result, we own a 50% non-consolidating interest in One Piece Corp., a subsidiary of J. Morita, one of t he 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 . As of December 29, 2018, we recorded approximately $ 101.3 million of goodwill through preliminary purchase price allocations for these acquisitions . Total acquisition transact ion costs incurred in the year ended December 31, 2016 were immaterial to our financial results. Some prior owners of acquired subsidiaries are eligible to receive additional purchase price cash consideration if certain financial targets are met. We have accrued liabilities for the estimated fair value of additional purchase price consideration at the time of the acquisition. Any adjustments to these accrual amounts are recorded in our consolidated statements of income. For the years ended December 29, 2018, December 30, 2017 and December 31, 2016, there were no material adjustments recorded in our consolidated statement of income relating to changes in estimated contingent purchase price liabilities. |
Plans of Restructuring
Plans of Restructuring | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Plans of Restructuring | Note 10 – Plans of Restructuring On July 9, 2018, we committed to an initiative to rationalize our operations and provide expense efficiencies. These actions will allow us to execute on our plan to reduce our cost structure and fund new initiatives that are expected to drive future growth under our 2018 to 2020 strategic plan. This initiative is expected to include the elimination of approximately 2 % to 3 % of our workforce and the closing of certain facilities. The total 2018 costs associated with the actions to complete this restructuring were previously expected to be in the range of $45 million to $55 million , h owever, additional cost savings opportunities were identified in the fourth quarter of 2018 resulting in a charge of $35.4 million, which increased our full year 2018 restructuring charges to $62.9 million, consisting primarily of severance costs. We plan to continue restructuring activities in the first half of 2019 and expect to incur additional restructuring costs related to these acti vities during Q1 and Q2 2019. At this time we are identifying specific opportunities and cannot reasonably estimate the amount of additio nal restructuring costs in 2019. On November 6, 2014, we announced a corporate initiative to rationalize our operat ions 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 workfo rce. The total costs associated with the actions for this restructuring included $34.9 million pre-tax, which was recorded in fiscal 2015, and $45.9 million pre-tax, which was recorded in fiscal 2016. The costs associated with these restructurings are included in a separate line item, “Restructuring costs” within our consolidated statements of income. The following table shows the amounts expensed and paid for restructuring costs that were incurred during our 2018 , 2017 and 2016 fiscal years and the remaining accrued balance of restructuring costs as of December 29, 2018 , which is included in Accrued expenses: Other and Other liabilities within our consolidated balance sheet : Facility Severance Closing Costs Costs Other Total 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 Provision - - - - Payments and other adjustments (19,136) (1,139) (871) (21,146) Balance, December 30, 2017 $ 3,218 $ 1,315 $ 24 $ 4,557 Provision 58,154 3,607 1,151 62,912 Payments and other adjustments (30,649) (3,167) (1,017) (34,833) Balance, December 29, 2018 $ 30,723 $ 1,755 $ 158 $ 32,636 The following table shows , by reportable segment, the amounts expensed and paid for restructuring costs that were incurred during our 2018 , 2017 and 2016 fiscal years and the remaining accrued balance of restructuring costs as of December 29, 2018 : Technology and Health Care Value-Added Distribution Services Total 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 Provision - - - Payments and other adjustments (20,681) (465) (21,146) Balance, December 30, 2017 $ 4,557 $ - $ 4,557 Provision 59,126 3,786 62,912 Payments and other adjustments (32,483) (2,350) (34,833) Balance, December 29, 2018 $ 31,200 $ 1,436 $ 32,636 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 29, 2018 | |
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 29, December 30, December 31, 2018 2017 2016 Basic 152,656 156,787 161,641 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 1,051 1,421 2,082 Diluted 153,707 158,208 163,723 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | Note 12 – Income Taxes Income before taxes and equity in earnings of affiliates was as follows: Years ended December 29, December 30, December 31, 2018 2017 2016 Domestic $ 505,877 $ 649,657 $ 625,792 Foreign 189,471 173,191 130,043 Total $ 695,348 $ 822,848 $ 755,835 The provisions for income taxes were as follows: Years ended December 29, December 30, December 31, 2018 2017 2016 Current income tax expense: U.S. Federal $ 93,209 $ 283,417 $ 185,438 State and local 35,197 28,520 28,229 Foreign 68,299 50,084 41,357 Total current 196,705 362,021 255,024 Deferred income tax expense (benefit): U.S. Federal (9,331) 13,686 (18,090) State and local (4,625) 856 (4,809) Foreign (27,257) (14,057) (14,167) Total deferred (41,213) 485 (37,066) Total provision $ 155,492 $ 362,506 $ 217,958 The tax effects of temporary differences that give rise to our deferred income tax asset (liability) were as follows: Years Ended December 29, December 30, 2018 2017 Deferred income tax asset: Investment in partnerships $ 76,232 $ 22,600 Net operating losses and other carryforwards 44,630 48,711 Inventory, premium coupon redemptions and accounts receivable valuation allowances 25,270 23,715 Stock-based compensation 18,473 22,525 Uniform capitalization adjustment to inventories 8,189 6,591 Other asset 38,514 13,669 Total deferred income tax asset 211,308 137,811 Valuation allowance for deferred tax assets (1) (23,535) (31,223) Net deferred income tax asset 187,773 106,588 Deferred income tax liability Intangibles amortization (122,805) (132,280) Property and equipment (13,296) (13,777) Total deferred tax liability (136,101) (146,057) Net deferred income tax asset (liability) (2) $ 51,672 $ (39,469) (1) 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.” (2) 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. The table above has been revised for presentational purposes to separately present total deferred tax assets and total deferred tax liabilities. 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 b e 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 requires consideration of events that may occur some years into the future, there is an element of judgment inv olved. Realization of our deferred tax assets is dependent on generating sufficient taxable income in future periods. We believe that it is more likely 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 valuatio n allowance accordingly . As of December 29, 2018 , we had foreign net operating loss carryforwards of $ 2.4 million , which can be utilized against future foreign income through December 31, 2026 . Additionally, as of December 29, 2018 , there were foreign net operating loss carryforwards of $ 135.9 million that have an indefinite life. As of December 29, 2018, the company had post-apportionment state net opera ting loss carryforwards of $16.9 million, which can be uti lized against future state income through December 31, 2038 . Additionally, as of December 29, 2018, there were post-apportionment state operating loss carryforwards of $12.5 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 29, December 30, December 31, 2018 2017 2016 Income tax provision at federal statutory rate $ 146,023 $ 287,996 $ 264,542 State income tax provision, net of federal income tax effect 16,271 12,457 11,236 Foreign income tax provision (420) (24,433) (18,036) Pass through noncontrolling interest (4,595) (11,623) (13,083) Valuation allowance 2,037 1,008 1,472 Unrecognized tax benefits and audit settlements 4,166 3,899 3,066 Interest expense related to loans (11,925) (18,717) (21,737) Excess tax benefits related to stock compensation (837) (17,387) - Transition tax on deemed repatriation of foreign earnings (10,000) 140,000 - Revaluation of deferred tax assets and liabilities (1,676) 2,953 - Tax on global intangible low-taxed income ("GILTI") 7,455 - - Transaction costs related to Animal Health spin-off 7,325 - - Tax benefit related to legal entity reorganization outside the U.S. (13,852) - - Tax charge related to reorganization of legal entities related to forming Henry Schein One 3,914 - - Tax charge related to reorganization of legal entities completed in preparation for the Animal Health spin-off 3,135 - - Other 8,471 (13,647) (9,502) Total income tax provision $ 155,492 $ 362,506 $ 217,958 For the year ended December 29, 2018, our effective tax rate was 22.4 % compared to 44.1 % for the prior year period. In 2018, our effective tax rate was primarily impacted by a reduction in the estimate of our transition tax associated with the Tax Cuts and Jobs Act (“the Tax Act”), tax charges and credits associated with legal entity reorganizations outside the U.S., and state and foreign income taxes and interest expense. In 2017, our effective tax rate was primarily impacted by the Tax Act, the adopti on of ASU 2016-09, as well as state and foreign income taxes and interest expense. On December 22, 2017, the U.S. government passed the Tax Act. The Tax Act is comprehensive tax legislation that implemented complex changes to the U.S. tax code including, but not limited to, the reduction of the corporate tax rate from 35% to 21%, modification of accelerated depreciation, the repeal of the domestic manufacturing deduction and changes to the limitations of the deductibility of interest. Additionally, the Ta x Act moved from a global tax regime to a modified territorial regime, which requires U.S. companies to pay a mandatory one-time transition tax on historical offshore earnings that have not been repatriated to the U.S. The transition tax is payable over e ight years. The Tax Act also included provisions to tax global intangible low-taxed income (“GILTI”), a beneficial tax rate for eign Derived Intangible Income (“FDII”), a base erosion and anti-abuse tax (“BEAT”) that imposes tax on certain foreign related- party payments, and IRC Section 163(j) interest limitation (Interest Limitation). We became subject to the GILTI, FDII, BEAT and Interest Limitation provisions effective January 1, 2018. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangi ble Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. We elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. Under Topic 740, we estimated the impact of each provision of the Tax Act on our effective tax and recorded a current tax expense for the GILTI p rovision of $7.5 million in our effective tax rate for the year ended December 29, 2018. For the BEAT, FDII and Interest Limitation computations, we have not recorded an estimate in our effective tax rate for the year ended December 29, 2018 because we ha ve concluded that these provisions of the Tax Act will not apply to us in 2018. Due to the complexities of the Tax Act, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) that allowed the company to record a provisional amount for any incom e tax effects of the Tax Act in accordance with ASC 740, to the extent that a reasonable estimate can be made, in its 2017 financial statements. SAB 118 allowed for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. In the fourth quarter of 2017, we recorded provisional amounts for any items that could be reasonably estimated at the time. This included the one-time transition tax that we estimated to be $ 140.0 million and a net deferred tax expense of $3.0 million attributable to the revaluation of deferred tax assets and liabilities due to the lower enacted federal income tax rate of 21%. Within our consolidated balance sheets, $ 27.4 million was included in “Accrued taxes ” and $ 112.6 million was included in “Other liabilities”. In the aggregate, for the quarter ended December 30, 2017, these Tax Act modifications resulted in a one-time tax expense of approximately $ 143.0 million. Absent the effects of the transition tax and the revaluation of deferred tax assets and liabilities, our effective tax rate for the year ended December 30, 2017 would have been 26.7 % as compared to our actual effective tax rate of 44.1%. For the year ended December 29, 2018 we have recorded a n et $10.0 million reduction to the one-time transition tax and an additional $1.7 million net deferred tax benefit from the revaluation of deferred tax assets and liabilities to reflect the new tax rate. Within our consolidated balance sheets, $ 9.9 million is included in “Accrued taxes” and $ 104.2 million is included in “Other liabilities” for the transition tax. The changes were a result of additional analysis, changes in interpretation and assumptions, as well as additional regulatory guidance that was i ssued. As of December 22, 2018 , the Company has completed its analysis of the impact of the Tax Act in accordance with SAB 118 and the amounts are now considered final . During 2016, the effective tax rate was affected by a federal tax audit settlement , which reduced our income tax expense by approximately $4.5 million which is included in the unrecognized tax benefits amount above. Due to the one-time transition tax and the imposition of the GILTI provisions, all previously unremitted earnings will no longer be subject to U.S. federal income tax; however, there could be U.S. state and/or foreign withholding taxes upon distribution of such unremitted earnings. Determination of the amount of unrecognized deferred tax liability with respect t o such ear nings is not practicable . ASC Topic 740 prescribes 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 examinat ion by the taxing authorities. 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 examinati on by various taxing authorities. 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 ar e included in “Other liabilities” within our consolidated balance sheets as of December 29, 2018 was approximately $ 100.0 million, of which $ 86.1 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 statements. The total amounts of interest and penalties, which are classified as a component of the provision for inc ome taxes and included in “Other liabilities”, were approximately $ 16.4 million and $ 0 , respectively , as of December 29, 2018. 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 proposed settlement was reached. On July 13, 2016, a joint status report was filed with the Tax Court indicating 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 Internal Revenue Service’s Special Trial Attorney and submitted to the Tax Court finalizing the Appeals decision. Addit ionally, during the quarter ended December 31, 2016 we filed a Mutual Agreement Procedure request with the IRS for assistance from the U.S. Competent Authority for an open Transfer Pricing issue which resulted in a partial settlement during the quarter end ed December 30, 2017. We received a 30 Day Letter from the IRS during the quarter ended April 1, 2017 for the remaining open audit issues for the years 2012 and 2013. We filed a Protest with the Appellate Division regarding these issues during the second quarter of 2017. We had an initial Appeals Conference during the third quarter of 2018, of which we are awaiting a final settlement. During the quarter ended December 29, 2018, we submitted the first draft of our proposed Advanced Pricing Agreeme nt cove ring tax years 2014-2024 to the IRS in which Henry Schein, Inc. and the IRS would agree on an appropriate transfer pricing methodology. We do not expect this to have a material effect on our consolidated financial position, liquidity or the results of ope rations. The following table provides a reconciliation of unrecognized tax benefits excluding the effects of deferred taxes, interest and penalties: December 29, December 30, December 31, 2018 2017 2016 Balance, beginning of period $ 90,900 $ 90,400 $ 77,600 Additions based on current year tax positions 5,000 8,500 7,300 Additions based on prior year tax positions 11,600 6,100 20,400 Reductions based on prior year tax positions (1,700) (800) (900) Reductions resulting from settlements with taxing authorities (1,900) (10,500) (9,700) Reductions resulting from lapse in statutes of limitations (20,400) (2,800) (4,300) Balance, end of period $ 83,500 $ 90,900 $ 90,400 |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 29, 2018 | |
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 2018 or 2017 . With respect to our sources of supply, our top 10 health care distribution suppliers and our single largest supplier accounted for approximately 32 % and 6 %, respectively, of our aggregate purchases in 2018 and approximately 34 % and 5 %, respectively, of our aggregate purchases in 2017 . 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. 29, 2018 | |
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 credit risk of the derivative counterp arties . 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 into are components of hedging programs an d 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 counterparties , maintaining a strong balance s heet 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contract with Customer | Note 15 – Revenue fro m Contr acts with Customers Revenue (Net sales) is recognized in accordance with the policies discussed in Note 1 – Significant Accounting Policies . Disaggregation of Net sales The following table disaggregates our Net sales by reportable segment and geographic area: Year Ended December 29, 2018 North America International Global Net sales: Health care distribution Dental $ 3,867,118 $ 2,481,827 $ 6,348,945 Animal health 1,865,316 1,817,323 3,682,639 Medical 2,581,696 79,470 2,661,166 Total health care distribution 8,314,130 4,378,620 12,692,750 Technology and value-added services 426,653 82,592 509,245 Total $ 8,740,783 $ 4,461,212 $ 13,201,995 |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Data | Note 16 – 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 servic es, 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 gl obal 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 an d medical groups serve practitioners in 31 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 inclu de 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, con sulting and other services. The following tables present information about our reportable and operating segments: Years Ended December 29, December 30, December 31, 2018 2017 2016 Net Sales: Health care distribution (1): Dental $ 6,348,945 $ 6,048,813 $ 5,555,299 Animal health 3,682,639 3,476,635 3,253,095 Medical 2,661,166 2,497,994 2,337,661 Total health care distribution 12,692,750 12,023,442 11,146,055 Technology and value-added services (2) 509,245 438,101 425,613 Total $ 13,201,995 $ 12,461,543 $ 11,571,668 (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 29, December 30, December 31, 2018 2017 2016 Operating Income: Health care distribution $ 618,788 $ 728,520 $ 652,106 Technology and value-added services 134,264 130,849 119,468 Total $ 753,052 $ 859,369 $ 771,574 Income before taxes and equity in earnings of affiliates: Health care distribution $ 563,006 $ 696,453 $ 640,184 Technology and value-added services 132,342 126,395 115,651 Total $ 695,348 $ 822,848 $ 755,835 Depreciation and Amortization: Health care distribution $ 179,760 $ 168,186 $ 146,276 Technology and value-added services 27,800 24,886 23,504 Total $ 207,560 $ 193,072 $ 169,780 Income Tax Expense: Health care distribution $ 101,179 $ 325,302 $ 185,571 Technology and value-added services 54,313 37,204 32,387 Total $ 155,492 $ 362,506 $ 217,958 Interest Income: Health care distribution $ 20,849 $ 17,318 $ 13,086 Technology and value-added services 387 235 189 Total $ 21,236 $ 17,553 $ 13,275 Interest Expense: Health care distribution $ 78,769 $ 53,607 $ 31,845 Technology and value-added services 17 47 48 Total $ 78,786 $ 53,654 $ 31,893 Purchases of Fixed Assets: Health care distribution $ 87,131 $ 76,449 $ 66,611 Technology and value-added services 3,506 5,052 3,568 Total $ 90,637 $ 81,501 $ 70,179 As of December 29, December 30, December 31, 2018 2017 2016 Total Assets: Health care distribution $ 7,375,723 $ 7,399,718 $ 6,377,253 Technology and value-added services 1,124,804 464,277 434,510 Total $ 8,500,527 $ 7,863,995 $ 6,811,763 The following table presents information about our operations by geographic area as of and for the three years ended December 29, 2018 . 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. 2018 2017 2016 Net Sales Long-Lived Assets Net Sales Long-Lived Assets Net Sales Long-Lived Assets United States $ 8,348,398 $ 2,522,477 $ 7,904,698 $ 2,000,624 $ 7,536,897 $ 1,803,689 Other 4,853,597 1,264,459 4,556,845 1,345,349 4,034,771 1,171,137 Consolidated total $ 13,201,995 $ 3,786,936 $ 12,461,543 $ 3,345,973 $ 11,571,668 $ 2,974,826 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 29, 2018 | |
Compensation Related Costs [Abstract] | |
Employee Benefit Plans | Note 17 – Employee Benefit Plans Stock-based Compensation Our accompanying consolidated statements of income reflect pre-tax share-based compensation expense of $ 36.2 million ($ 28.1 million after-tax), $ 42.3 million ($ 23.7 million after-tax) and $ 58.2 million ($ 41.4 million after-tax) for the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 . 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, there were no benefi ts associated with tax deductions in excess of recognized compensation as a cash inflow from financing activities for the years ended December 29, 2018 and December 30, 2017 and $ 0.5 million of such benefits for the year ended December 31, 2016 . 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 recog nize 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 expenses in our consolidated statemen ts 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 adm inistered 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 gr anted 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 29, 2018 , there were 62,459 shares authorized and 6,262 shares available to be granted under the 2013 Stock Incentive Plan and 1,800 shares authorized and 256 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 grant s 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 (pr imarily 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 , including, without lim itation, acquisitions, divestitures, 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 fluctuat ions. Over the performance 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 ultim ate number of shares delivered 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. During the first quarter of 2017, we adopted the provisions of ASU 2016-09 whic h requires that all excess tax benefits and tax deficiencies resulting from the difference between the deduction for tax purposes and the stock-based compensation cost recognized for financial reporting purposes be included as a component of income tax ex pense as of January 1, 2017. Prior to the implementation of ASU 2016-09, 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 or in the i ncome statement if there were no accumulated excess tax benefits. Stock-based compensation grants for the three years ended December 29, 2018 primarily consisted of restri cted stock/ unit grants. Certain stock-based compensation granted may require us t o settle in the form of a cash payment. During the year ended December 29, 2018 , we recorded a liability of $ 0.8 million relating to the grant date fair value of stock-based compensation to be settled in cash. T he weighted-average grant date fair value of stock-based awards granted before forfeitures was $ 71.38 , $ 85.43 and $ 83.90 per share during the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 . Total unrecognized compensation cost related to non-vested awards as of December 29, 2018 was $ 77.9 million, which is expected to be recognized over a weighted-average period of approximately 2.0 years. A summary of the stock option activity under the Plans is presented below: Years Ended December 29, December 30, December 31, 2018 2017 2016 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 155 $ 29.65 353 $ 28.59 769 $ 28.00 Granted - - - - - - Exercised (153) 29.81 (198) 27.76 (416) 27.49 Forfeited - - - - - - Outstanding at end of year 2 $ 17.22 155 $ 29.65 353 $ 28.59 Options exercisable at end of year 2 $ 17.22 155 $ 29.65 353 $ 28.59 During the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 , we did not grant any stock options. The following table represents the intrinsic values of: As of December 29, December 30, December 31, 2018 2017 2016 Stock options outstanding $ 121 $ 6,256 $ 16,681 Stock options exercisable 121 6,256 16,681 The total cash received as a result of stock option exercises for the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 was approximately $ 3.1 million, $ 5.3 million and $ 11.4 million. In connection with these exercises, we did not realize any tax benefits for the years ended December 29, 2018 and December 30, 2017 . During the year ended December 31, 2016 the tax benefit that we realized was $ 23.4 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 $ 76.48 , $ 83.16 and $ 81.86 during the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 . The following table summarizes the status of our non-vested restricted stock /units for the year ended December 29, 2018 : Time-Based Restricted Stock/Units Weighted Average Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Outstanding at beginning of period 1,233 $ 70.28 Granted 367 66.00 Vested (312) 62.98 Forfeited (88) 77.67 Outstanding at end of period 1,200 $ 70.33 $ 77.92 Performance-Based Restricted Stock/Units Weighted Average Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Outstanding at beginning of period 1,226 $ 60.81 Granted 200 72.16 Vested (426) 71.33 Forfeited (80) 77.27 Outstanding at end of period 920 $ 50.86 $ 77.92 401(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 29, 2018 , December 30, 2017 and December 31, 2016 amounted to $ 35.0 million, $ 39.0 million and $ 33.9 million, respectively. Supplemental Executive Retirement Plan We offer an unfunded, non-qualified supplementa l executive retirement 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) employee-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 (credited) to operations during th e years ended December 29, 2018 , December 30, 2017 and December 31, 2016 amounted to $ (0.4) million, $ 0.6 million and $ 0.3 million, respectively. Deferred Compensation Plan During 2011, we began to offer a deferred compensation plan to a select group o f management or highly compensated employees of the Company and certain subsidiaries . This plan allows for the elective deferral of base salary, bonus and/or commission compensation by eligible employees. The amounts charged to operations during the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 were approximately $ 2.3 million, $ 5.0 million and $ 1.7 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18 – 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 rental payments under our non-cancelable operating leases as of December 29, 2018 were : 2019 $ 78,940 2020 61,605 2021 44,574 2022 31,501 2023 23,365 Thereafter 68,373 Total minimum operating lease payments $ 308,358 Total rental expense for the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 was $ 91.1 million, $ 84.8 million and $ 79.6 million , respectively . 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 29, 2018 were : 2019 $ 1,695 2020 1,134 2021 710 2022 313 2023 291 Thereafter 1,430 Total minimum capital lease payments 5,573 Less: Amount representing interest at 0.07% to 19.79% (425) Total present value of minimum capital lease payments $ 5,148 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 29, 2018 were : 2019 $ 499,346 2020 215,445 2021 230,967 2022 124,465 2023 446 Thereafter - Total minimum inventory purchase commitment payments $ 1,070,669 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 2019 through 2023 and thereafter of approximately $ 16.6 million, $ 1.8 million, $ 0.8 million, $ 0.1 million and $ 0.0 million. We also have lifetime consulting agreement s that pr ovide for current compensation of $ 0.5 million per year, increasing $ 25 every fifth year with the next increase in 2022 . In addition, some agreements have provisions for additional incentives and compensat ion. Litigation Beginning in January 2016 , purported class action complaints were filed against Patterson Companies, Inc. (“Patterson”), Benco Dental Supply Co. (“Benco”) and Henry Schein, Inc. Although there were factual and legal variations among these complaints, each of these complaints alleges, 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 . On February 9, 2016, the U.S. District Court for the Eastern District of New York ordered all of these actions, and all other actions filed thereafter asserting substantially similar claims against defendants, consolidated for pre-trial purposes. On Fe bruary 26, 2016, a consolidated class action complaint was filed by Arnell Prato, D.D.S., P.L.L.C., d/b/a Down to Earth Dental, Evolution Dental Sciences, LLC, Howard M. May, DDS, P.C., Casey Nelson, D.D.S., Jim Peck, D.D.S., Bernard W. Kurek, D.M.D., Larc hmont Dental Associates, P.C., and Keith Schwartz, D.M.D., P.A. (collectively, “putative class representatives”) in the U.S. District Court for the Eastern District of New York, entitled In re Dental Supplies Antitrust Litigation, Civil Action No. 1:16-CV- 00696-BMC-GRB. In the consolidated class action complaint, putative class representatives allege a nationwide agreement among Henry Schein, Benco, Patterson and non-party Burkhart Dental Supply Company, Inc. (“Burkhart”) not to compete on price. The conso lidated 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 costs and expenses, including attorneys’ fees and expert fees. On September 28, 2018, the parties executed a settlement agreement that proposes, subject to court approval, a full and final settlement of the lawsuit on a classwide basis. Subject to certain exceptions, the settlement class consists of all persons or entit ies that purchased dental products directly from Henry Schein, Patterson, Benco, Burkhart, or any combination thereof, during the period August 31, 2008 through and including March 31, 2016. As a result, we recorded a charge of $ 38.5 million in our third quarter 2018 results. On August 31, 2012 , Archer and White Sales, Inc. (“Archer”) filed a complaint against Henry Schein, Inc. as well as Danaher Corporation and its subsidiaries Instrumentarium Dental, Inc., Dental Equipment, LLC, Kavo Dental Technolo gies, LLC and Dental Imaging Technologies Corporation (collectively, the “Danaher Defendants”) in the U.S. District Court for the Eastern District of Texas, Civil Action No. 2:12-CV-00572-JRG, styled as an antitrust action under Section 1 of the Sherman Ac t, and the Texas Free Enterprise Antitrust Act. Archer alleges a conspiracy between Henry Schein, an unnamed company and the Danaher Defendants to terminate or limit Archer’s distribution rights. On August 1, 2017 , Archer filed an amended complaint, addi ng Patterson and Benco as defendants, and alleging that Henry Schein, Patterson, Benco and Burkhart conspired to fix prices and refused to compete with each other for sales of dental equipment to dental professionals and agreed to enlist their common suppl iers, the Danaher Defendants, to join a price-fixing conspiracy and boycott by reducing the distribution territory of, and eventually terminating, their price-cutting competing distributor Archer. Archer seeks damages in an amount to be proved at trial, t o be trebled with interest and costs, including attorneys’ fees, jointly and severally, as well as injunctive relief. On October 30, 2017 , Archer filed a second amended complaint, to add additional allegations that it believes support its claims . The nam ed parties and causes of action are the same as the August 1, 2017 amended complaint. On October 1, 2012, we filed a motion for an order: (i) compelling Archer to arbitrate its claims against us; (2) staying all proceedings pending arbitration; and (3) joining the Danaher Defendants’ motion to arbitrate and stay. On May 28, 2013, the Magistrate Judge granted the motions to arbitrate and stayed proceedings pending arbitration. On June 10, 2013, Archer moved for reconsideration before the District Court judge. On December 7, 2016, the District Court Judge granted Archer’s motion for reconsideration and lifted the stay. Defendants appealed the District Court’s order. On December 21, 2017, the U.S. Court of Appeals for the Fifth Circuit affirmed the Dist rict Court’s order denying the motions to compel arbitration. On February 12, 2018, defendants filed an Application for Stay of Proceedings in the District Court in the Supreme Court of the United States, seeking to stay proceedings in the District Court pending a decision on defendants’ forthcoming petition for writ of certiorari. On June 25, 2018, the Supreme Court of the United States granted defendants’ petition for writ of certiorari. On October 29, 2018, the Supreme Court heard oral arguments. On January 8, 2019, the Supreme Court issued its published decision vacating the judgment of the Fifth Circuit and remanding the case to the Fifth Circuit for further procee dings consistent with the Supreme Court’s opinion. We intend to defend ourselves vigorously against this action. On August 17, 2017 , IQ Dental Supply, Inc . (“IQ Dental”) filed a complaint in the U.S. District Court for the Eastern District of New York, entitled IQ Dental Supply, Inc. v. Henry Schein, Inc., Patterson Companies, Inc. and Benco Dental Supply Company , Case No. 2:17-cv-4834. Plaintiff alleges that it is a distributor of dental supplies and equipment, and sells dental products through an onli ne dental distribution platform operated by SourceOne Dental (“SourceOne”). SourceOne had previously brought an antitrust lawsuit against Henry Schein, Patterson and Benco, which Henry Schein settled in the second quarter of 2017 and which is described in our prior filings with the SEC. IQ Dental alleges, among other things, that defendants conspired to suppress competition from IQ Dental and SourceOne 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 and SourceOne. Plaintiff claims that this alleged conduct constitutes unreasonable restra int of trade in violation of Section 1 of the Sherman Act, New York’s Donnelly Act and the New Jersey Antitrust Act, and also makes pendant state law claims for tortious interference with prospective business relations, civil conspiracy and aiding and abet ting. Plaintiff seeks injunctive relief, compensatory, treble and punitive damages, jointly and severally, and reasonable costs and expenses, including attorneys’ fees and expert fees. On December 21, 2017, the District Court granted the defendants’ moti on to dismiss. On January 19, 2018, IQ Dental appealed the District Court’s order. The U.S. Court of Appeals for the Second Circuit heard oral argument on the appeal on September 13, 2018. The court’s decision is pending. We intend to defend ourselves vigorously against this action. On February 12, 2018 , the United States Federal Trade Commission (“FTC”) filed a complaint against Benco Dental Supply Co., Henry Schein, Inc. and Patterson Companies, Inc. The FTC alleges, among other things, that defenda nts violated U.S. antitrust laws by conspiring, and entering into an agreement, to refuse to provide discounts to or otherwise serve buying groups representing dental practitioners. The FTC alleges that defendants conspired in violation of Section 5 of th e FTC Act. The complaint seeks equitable relief only and does not seek monetary damages. We deny the allegation that we conspired to refuse to provide discounts to or otherwise serve dental buying groups and intend to defend ourselves vigorously against this action. A hearing before an administrative law judge began on October 16, 2018 and is ongoing. We believe this matter will not have a material adverse effect on our consolidated financial position, liquidity or results of operations. On March 7, 201 8 , Joseph Salkowitz, individually and on behalf of all others similarly situated , filed a putative class action complaint for violation of the federal securities laws against Henry Schein, Inc., Stanley M. Bergman and Steven Paladino in the U.S. District C ourt for the Eastern District of New York, Case No. 1:18-cv-01428. The complaint sought to certify a class consisting of all persons and entities who, subject to certain exclusions, purchased Henry Schein securities from March 7, 2013 through February 12, 2018 (the “Class Period”). The complaint alleged, among other things, that the defendants had made materially false and misleading statements about Henry Schein’s business, operations and prospects during the Class Period, including matters relating to t he issues in the antitrust class action and the FTC action described above, thereby causing the plaintiff and members of the purported class to pay artificially inflated prices for Henry Schein securities. The complaint sought unspecified monetary damages and a jury trial. Pursuant to the provisions of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”), the court appointed lead plaintiff and lead counsel on June 22, 2018 and recaptioned the putative class action as In re Henry Schein, Inc. Securities Litigation, under the same case number. Lead plaintiff filed a consolidated class action complaint on September 14, 2018. The consolidated class action complaint asserts similar claims against the same defendants (plus Timothy Sullivan) on be half of the same putative class of purchasers during the Class Period. It alleges that Henry Schein’s stock price was inflated during that period because Henry Schein had misleadingly portrayed its dental-distribution business “as successfully producing e xcellent profits while operating in a highly competitive environment” even though, “in reality, [Henry Schein] had engaged for years in collusive and anticompetitive practices in order to maintain Schein’s margins, profits, and market share.” The complain t alleges that the stock price started to fall from August 8, 2017, when the company announced below-expected financial performance that allegedly “revealed that Schein’s poor results were a product of abandoning prior attempts to inflate sales volume and margins through anticompetitive collusion,” through February 13, 2018, after the FTC filed a complaint against Benco, Henry Schein and Patterson alleging that they violated U.S. antitrust laws. The complaint alleges violations of Section 10(b) of the Exch ange Act and Rule 10b-5 and Section 20(a) of the Exchange Act. We intend to defend ourselves vigorously against this action. Henry Schein has also received a request under 8 Del. C. § 220 to inspect corporate books and records relating to the issues raise d in the securities class action and the antitrust matters discussed above. On May 3, 2018 , a purported class action complaint, Marion Diagnostic Center, LLC, et al. v. Becton, Dickinson, and Co., et al., Case No. 3:18-cv-010509, was filed in the U.S. Dist rict Court for the Southern District of Illinois against Becton, Dickinson, and Co. (“Becton”); Premier, Inc. (“Premier”), Vizient, Inc. (“Vizient”), Cardinal Health, Inc. (“Cardinal”), Owens & Minor Inc. (“O&M”), Henry Schein, Inc., and Unnamed Becton Dis tributor Co-Conspirators . The complaint alleges that the defendants entered into a vertical conspiracy to force healthcare providers into long-term exclusionary contracts that restrain trade in the nationwide markets for conventional and safety syringes a nd safety IV catheters and inflate the prices of certain Becton products to above-competitive levels. The named plaintiffs seek to represent three separate classes consisting of all healthcare providers that purchased (i) Becton’s conventional syringes, ( ii) Becton’s safety syringes, or (iii) Becton’s safety catheters directly from Becton, Premier, Vizient, Cardinal, O&M or Henry Schein on or after May 3, 2014. The complaint asserts a single count under Section 1 of the Sherman Act, and seeks equitable re lief, treble damages, reasonable attorneys’ fees and costs and expenses, and pre-judgment and post-judgment interest. On June 15, 2018, an amended complaint was filed asserting the same allegations against the same parties and adding McKesson Medical-Surg ical, Inc. as an additional defendant. On November 30, 2018, the District Court granted defendants’ motion to dismiss and entered a final judgment, dismissing plaintiffs’ complaint with prejudice. On December 27, 2018, plaintiffs appealed the District Co urt’s decision to the Seventh Circuit Court of Appeals. We intend to defend ourselves vigorously against this action. On May 29, 2018 , an amended complaint was filed in the MultiDistrict Litigation (“MDL”) proceeding In Re National Prescription Opiate Li tigation (MDL No. 2804; Case No. 17-md-2804) in an action entitled The County of Summit, Ohio et al. v. Purdue Pharma, L.P., et al., Civil Action No. 1:18-op-45090-DAP (“County of Summit Action”), in the U.S. District Court for the Northern District of Oh io, adding Henry Schein, Inc., Henry Schein Medical Systems, Inc. and others as defendants . Plaintiffs allege that manufacturers of prescription opioid drugs engaged in a false advertising campaign to expand the market for such drugs and their own market share and that the entities in the supply chain (including Henry Schein, Inc. and Henry Schein Medical Systems, Inc.) reaped financial rewards by refusing or otherwise failing to monitor appropriately and restrict the improper distribution of those drugs. Plaintiffs assert the following claims for relief against Henry Schein, Inc. and Henry Schein Medical Systems, Inc.: statutory public nuisance; common law absolute public nuisance; negligence; injury through criminal acts (R.C. 2307.60); unjust enrichment ; and civil conspiracy. This case has been designated “Track 1” and is currently set for trial on October 21, 2019. We intend to defend ourselves vigorously against this action. In addition to the Summit County Action, Henry Schein and/or one or more of its affiliated companies have currently been named as a defendant in twenty-one (21) additional lawsuits, which allege claims similar to those alleged in the Summit County Action . None of these other cases have been set for trial. These actions consis t of some that have been consolidated within the MDL and are currently abated for discovery purposes, and others which remain pending in state courts and are proceeding independently and outside of the MDL. Sales of opioids in North America from October 2017 through October 2018 were less than 1 % of all North American sales. We intend to defend ourselves vigorously against these actions. On October 9, 2018 , a purported class action complaint entitled Kramer v. Henry Schein, Inc., Patterson Co., Inc., Be nco Dental Supply Co., and Unnamed Co-Conspirators , was filed in the U.S. District Court for the Northern District of California. The complaint alleges that members of the proposed class, comprised of purchasers of dental services from dental practices in California, suffered antitrust injury due to an unlawful boycott, price-fixing or otherwise anticompetitive conspiracy among Henry Schein, Patterson and Benco. The complaint alleges that the alleged conspiracy overcharged California dental practices, ort hodontic practices and dental laboratories on their purchase of dental supplies, which in turn passed on some or all of such overcharges to members of the California class purchasing dental services. Subject to certain exclusions, the complaint defines th e class as “all persons residing in California purchasing and/or reimbursing for dental services from California dental practices on or after August 31, 2012.” The complaint alleges violations of California antitrust laws, including the Cartwright Act (Cal . Bus. and Prof. Code § 16720) and the Unfair Competition Act (Cal. Bus. and Prof. Code § 17200), and seeks a permanent injunction, actual damages to be determined at trial, trebled, reasonable attorneys’ fees and costs, and pre- and post-judgment interest . On December 7, 2018, an amended complaint was filed asserting the same claims against the same parties. We intend to defend ourselves vigorously against this action. On January 29, 2019 , a purported class action complaint was filed by R. Lawrence Hatc hett, M.D. against Henry Schein, Inc., Patterson Co., Inc., Benco Dental Supply Co., and unnamed co-conspirators in the U.S. District Court for the Southern District of Illinois. The complaint alleges that members of the proposed class suffered antitrust injury due to an unlawful boycott, price-fixing or otherwise anticompetitive conspiracy among Henry Schein, Patterson and Benco. The complaint alleges that the alleged conspiracy overcharged Illinois dental practices, orthodontic practices and dental labor atories on their purchase of dental supplies, which in turn passed on some or all of such overcharges to members of the class. Subject to certain exclusions, the complaint defines the class as “all persons residing in Illinois purchasing and/or reimbursin g for dental care provided by independent Illinois dental practices purchasing dental supplies from the defendants, or purchasing from buying groups purchasing these supplies from the defendants, on or after January 29, 2015.” The complaint alleges violat ions of the Illinois Antitrust Act, 740 Ill. Comp. Stat. §§ 10/3(2), 10/7(2), and seeks a permanent injunction, actual damages to be determined at trial, trebled, reasonable attorneys’ fees and costs, and pre- and post-judgment interest. We intend to defe nd ourselves vigorously against this action. From time to time, we may become a party to other legal proceedings, including, without limitation, product liability claims, employment 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 opin ion none of these other pending matters are currently anticipated to have a material adverse effect on our consolidated financial position, liquidity or results of operations. As of December 29, 2018, we had accrued our best estimate of potential losses r elating 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 m ethod for determining estimated losses considers currently available facts, presently enacted laws and regulations and other factors, including probable recoveries from third parties . |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Information (Unaudited) | Note 19 – Quarterly Information (Unaudited) The following tables present certain quarterly financial data: Quarters ended March 31, June 30, September 29, December 29, 2018 (1) 2018 (1) 2018 (1) 2018 (1) Net sales $ 3,220,439 $ 3,326,676 $ 3,279,678 $ 3,375,202 Gross profit 895,592 901,072 888,560 909,860 Litigation settlements - - 38,488 - Transaction costs related to Animal Health spin-off 3,777 7,611 7,282 20,086 Restructuring costs 3,762 14,896 8,853 35,401 Operating income 206,142 201,349 165,926 179,635 Net income 148,631 147,509 126,976 139,010 Amounts attributable to Henry Schein, Inc.: Net income 140,218 141,212 121,478 132,973 Earnings per share attributable to Henry Schein, Inc.: Basic $ 0.92 $ 0.92 $ 0.80 $ 0.88 Diluted 0.91 0.92 0.79 0.87 Quarters ended April 1, July 1, September 30, December 30, 2017 (2) 2017 (2) 2017 (2) 2017 (2) Net sales $ 2,922,948 $ 3,059,458 $ 3,161,083 $ 3,318,054 Gross profit 822,920 839,173 836,054 900,956 Litigation settlement - 5,325 - - Operating income 193,968 210,662 213,548 241,191 Net income 150,253 149,582 150,948 8,510 Amounts attributable to Henry Schein, Inc.: Net income (loss) 140,748 136,055 138,031 (8,535) Earnings (loss) per share attributable to Henry Schein, Inc.: Basic $ 0.89 $ 0.86 $ 0.88 $ (0.06) Diluted 0.88 0.86 0.87 (0.06) (1) See Note 10 - "Plans of Restructuring" for details of the restructuring costs incurred during the fiscal year of 2018. (2) See Item 5 - "Purchases of Equity Securities by the Issuer" for details of the 2-for-1 split of our common stock, during the third quarter of 2017. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 29, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 20 – Supplemental Cash Flow Information Ca sh paid for interest and income taxes was : Years ended December 29, December 30, December 31, 2018 2017 2016 Interest $ 72,310 $ 49,311 $ 29,391 Income taxes 248,245 221,832 205,196 There was approximately $ 0.0 million, $ 0.4 million and $ 63.8 million of debt assumed as a part of the acquisitions for the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 , respectively. Debt assumed during the year ended December 31, 2016 primarily relates to the acquisitions of Dental Cremer S.A. and Dental Speed Graph. For the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 , we had $ 1.0 million, $ (1.5) million and $ (1.0) million of non-cash net unrealized gains (losses) related to foreign currency hedging activities, respectively. During the years ended December 29, 2018 and December 30, 2017, as part of business acquisitions, we increased our ownerships in subsidiaries through non-cash transactions of $ 1.4 million and $ 17.6 million, respectively. During the third quarter of 2018, we closed on a joint venture with Internet Brands to create a newly formed entity, Henry Schein One, LLC, through a non-cash transaction resulting in an initial estimate of approximately $ 385 million of noncontrolling interest representing Internet Brands’ current 26 % minority interest and an initial estimate of $ 182.6 million o f deferred additional ownership interests of Internet Brands in Henry Schein One, representing up to an additional 9.2 % ownership interests, a portion of which is contingent upon the achievement of certain operating targets (See Note 9). |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 29, 2018 | |
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 29, 2018: Allowance for doubtful accounts and other $ 53,832 $ 15,105 $ (700) $ (7,704) $ 60,533 Year ended December 30, 2017: Allowance for doubtful accounts and other $ 38,962 $ 9,370 $ 12,206 $ (6,706) $ 53,832 Year ended December 31, 2016: Allowance for doubtful accounts and other $ 30,974 $ 2,647 $ 11,576 $ (6,235) $ 38,962 (1) Represents amounts charged to bad debt expense. (2) Amounts charged to other accounts primarily relate to provision for late fees and the impact of foreign currency exchange rates. (3) Deductions primarily consist of fully reserved accounts receivable that have been written off. |
Overview and Significant Accoun
Overview and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Overview and Significant 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 . We consolidate a Variable Interest Entity ( “VIE”) where we hold a variable interest and are the primary beneficiary. The VIE is a trade accounts receivable securitization. We are the primary beneficiary because we have the power to direct activities that most significantly affect the economic perfo rmance and have the obligation to absorb the majority of the losses or benefits. The results of operations and financial position of this VIE are included in our consolidated financial statements. For the consolidated VIE, the trade accounts receivable t ransferred to the VIE are pledged as collateral to the related debt. The creditors have recourse to us for losses on these trade accounts receivable. For the years ended December 29, 2018 and December 30, 2017, trade accounts receivable that can only be u sed to settle obligations of this VIE were $ 422 million and $ 422 million, respectively, and the liabilities of the VIE where the creditors have recourse to us were $ 350 million and $ 350 million, respectively . |
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 d uring 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 s ended December 29, 2018 and December 30, 2017 consisted of 52 weeks, and the year ended December 31, 2016 consisted of 53 weeks. |
Stock Split | On August 16, 2017, we announced that our Board of Directors approved a two-for-one stock split of our common stock. Each Henry Schein, Inc. stockholder of record at the close of business on September 1, 2017 received a distribution of one additional share for every share held. T rading began on a split-adjusted basis on September 15, 2017. |
Revenue Recognition | Revenue Recognition On December 31, 2017, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of the adoption date. Results for reporting periods beginning after December 30, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for those periods. Our revenue recognition accounting policies applied prior to adoption of Topic 606 are outlined i n the financial statements in our Annual Report on Form 10-K for the year ended December 30, 2017 . The disclosures included herein reflect our accounting policies under Topic 606. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we do the following: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when, or as, the entity satisfies a performance obligation. We generate revenue from the sale of dental, animal health and medical con sumable products, equipment (Healthcare distribution revenues) , software products and services and other sources (Technology and value-added services revenues) . Provisions for discounts, rebates to customers, customer returns and other contra revenue adjustments are included in the transaction price at contract inception by e stimating the most likely amount 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 at a point in time when control transfers to the customer. 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 control has transferred to the customer because we have no post-shipment obligations and this is when legal title and risks and rewards of ownership transfer to the customer and the point at wh ich we have an enforceable right to payment. Revenue derived from the sale of equipment is recognized when control transfers to the customer. This occurs when the equipment is delivered. Such sales typically entail scheduled deliveries of large equipme nt primarily by equipment service technicians. Some equipment sales require minimal installation, which is typically completed at the time of delivery. Our product generally carries standard warranty terms provided by the manufacturer, however, in instance s where we provide warranty labor services, the warranty costs are accrued in accordance with ASC 460 “Guarantees”. Revenue derived from the sale of software products is recognized when products are shipped to customers or made available electronically. Such software is generally 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 generally recognized o ver time using time elapsed as the input method that best depicts the transfer of control to the customer. Revenue derived from other sources, including freight charges, equipment repairs and financial services, is recognized when the related product re venue is recognized or when the services are provided. We apply the practical expedient to treat shipping and handling activities performed after the customer obtains control as fulfillment activities, rather than a separate performance obligation in the contract. Sales, value-add and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Certain of our revenue is derived from bundled arrangements that include multiple distinct performance obligations which are acc ounted for separately. When we sell software products together with related services (i.e., training and technical support), we allocate revenue to software using the residual method, using an estimate of the standalone selling price to estimate the fair value of the undelivered elements. There are no cases where revenue is deferred due to a lack of a standalone selling price. Bundled arrangements that include elements that are not considered software consist primarily of equipment and the related install ation service. We allocate revenue for such arrangements based on the relative selling prices of the goods or services. If an observable selling price is not available (i.e., we do not sell the goods or services separately), we use one of the following te chniques to estimate the standalone selling price: adjusted market approach; cost-plus approach; or the residual method. There is no specific hierarchy for the use of these methods, but the estimated selling price reflects our best estimate of what the s elling prices of each deliverable would be if it were sold regularly on a standalone basis taking into consideration the cost structure of our business, technical skill required, customer location and other market conditions See Note 15 for additional disclosures of disaggregated net sales and Note 16 for disclosures of net sales by segment and geographic data . Contract Balances Contract balances represent amounts presented in our consolidated balance sheet when either we have transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable, contract assets and contract liabilities. Accounts Receivable Accounts receivable are generally recognized when heath care distribution and technology and value-added services revenues are recognized. The carrying amount of a ccounts receivable is reduced by a valuation allowance that reflects our best estimate of the amounts that will not be collected. In addition to reviewing delinquent accounts receivable, we consider many factors in estimating our reserve, including histori cal 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 factors expected to affect collectability. Contract Assets Contract assets include amounts related to any conditional right to consideration for work completed but not billed as of the reporting date and generally represent amounts owed to us by customers, but not yet billed. Contract assets are transferred to accounts receivable when th e right becomes unconditional. The contract assets primarily relate to our bundled arrangements for the sale of equipment and consumables and sales of term software licenses. Current contract assets are included in Prepaid expenses and other and the non-c urrent contract assets are included in Investments and other within our consolidated balance sheet. Current and non-current contract asset balances as of December 29, 2018 and December 31, 2017 were not material. Contract Liabilities Contract liabilities are comprised of advance payments and upfront payments for service arrangements provided over time that are accounted for as deferred revenue amounts. Contract liabilities are transferred to revenue once the performance obligation has been satisfied. Cur rent contract liabilities are included in Accrued expenses: Other and the non-current contract liabilities are included in Other liabilities within our consolidated balance sheet. At December 31, 2017, the current portion of contract liabilities of $85.7 million was reported in Accrued expenses: Other, and $5.2 million related to non-current contract liabilities were reported in Other liabilities. During the year ended December 29, 2018, we recognized substantially all of the current contract liability am ounts that were previously deferred at December 31, 2017. At December 29, 2018, the current and non-current portion of contract liabilities were $83.6 million and $5.3 million, respectively. Deferred Commissions Sales commissions earned by our sales for ce that relate to long term arrangements are capitalized as costs to obtain a contract when the costs incurred are incremental and are expected to be recovered. Deferred sales commissions are amortized over the estimated customer relationship period. We a pply the practical expedient related to the capitalization of incremental costs of obtaining a contract, and recognize such costs as an expense when incurred if the amortization period of the assets that we would have recognized is one year or less. Sales Returns Sales returns are recognized as a reduction of revenue by the amount of expected returns and are recorded as refund liability within current liabilities. We estimate the amount of revenue expected to be reversed to calculate the sales return liab ility based on historical data for specific products, adjusted as necessary for new products. The allowance for returns is presented gross as a refund liability and we record an inventory asset (and a corresponding adjustment to cost of sales) for any goo ds or services that we expect to be returned. 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 $ 102.1 million, $ 93.3 million and $ 84.0 million for the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 . 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. |
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 $ 72.0 million and $ 83.6 million, primarily related to payments for inventory, were classified as accounts payable as of December 29, 2018 and December 30, 2017 . |
Inventories and Reserves | Inventories and Reserves Inventories consist primarily of finished goods and are valued at the lower of cost or net realizable value . 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. |
Advertising and Promotional Costs | Advertising and Promotional Costs We generally expense advertising and promotional costs as incurred. Total advertising and promotional expenses were $ 28.9 million, $ 15.7 million and $ 18.4 million for the years ended December 29, 2018 , December 30, 2017 and December 31, 2016 . |
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 incurr ed 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 deferred income tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Our accounting for the Tax Cuts and Jobs Act, enacted on December 22, 2017, is further discussed in Note 12 of “Notes to Consolidated Financial Statements.” We file a consol idated U.S. federal income tax return with our 80% or greater owned U.S. subsidiaries . On December 22, 2017, the U.S. government passed the Tax Act. The Tax Act is comprehensive tax legislation that implemented complex changes to the U.S. tax code including, but not limited to, the reduction of the corporate tax rate from 35% to 21%, modification of accelerated depreciation, the repeal of the domestic manufacturing deduction and changes to the limitations of the deductibility of interest. Additionally, the Ta x Act moved from a global tax regime to a modified territorial regime, which requires U.S. companies to pay a mandatory one-time transition tax on historical offshore earnings that have not been repatriated to the U.S. The transition tax is payable over e ight years. The Tax Act also included provisions to tax global intangible low-taxed income (“GILTI”), a beneficial tax rate for eign Derived Intangible Income (“FDII”), a base erosion and anti-abuse tax (“BEAT”) that imposes tax on certain foreign related- party payments, and IRC Section 163(j) interest limitation (Interest Limitation). We became subject to the GILTI, FDII, BEAT and Interest Limitation provisions effective January 1, 2018. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangi ble Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. We elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. Under Topic 740, we estimated the impact of each provision of the Tax Act on our effective tax and recorded a current tax expense for the GILTI p rovision of $7.5 million in our effective tax rate for the year ended December 29, 2018. For the BEAT, FDII and Interest Limitation computations, we have not recorded an estimate in our effective tax rate for the year ended December 29, 2018 because we ha ve concluded that these provisions of the Tax Act will not apply to us in 2018. Due to the complexities of the Tax Act, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) that allowed the company to record a provisional amount for any incom e tax effects of the Tax Act in accordance with ASC 740, to the extent that a reasonable estimate can be made, in its 2017 financial statements. SAB 118 allowed for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. In the fourth quarter of 2017, we recorded provisional amounts for any items that could be reasonably estimated at the time. This included the one-time transition tax that we estimated to be $ 140.0 million and a net deferred tax expense of $3.0 million attributable to the revaluation of deferred tax assets and liabilities due to the lower enacted federal income tax rate of 21%. Within our consolidated balance sheets, $ 27.4 million was included in “Accrued taxes ” and $ 112.6 million was included in “Other liabilities”. In the aggregate, for the quarter ended December 30, 2017, these Tax Act modifications resulted in a one-time tax expense of approximately $ 143.0 million. Absent the effects of the transition tax and the revaluation of deferred tax assets and liabilities, our effective tax rate for the year ended December 30, 2017 would have been 26.7 % as compared to our actual effective tax rate of 44.1%. For the year ended December 29, 2018 we have recorded a n et $10.0 million reduction to the one-time transition tax and an additional $1.7 million net deferred tax benefit from the revaluation of deferred tax assets and liabilities to reflect the new tax rate. Within our consolidated balance sheets, $ 9.9 million is included in “Accrued taxes” and $ 104.2 million is included in “Other liabilities” for the transition tax. The changes were a result of additional analysis, changes in interpretation and assumptions, as well as additional regulatory guidance that was i ssued. As of December 22, 2018 , the Company has completed its analysis of the impact of the Tax Act in accordance with SAB 118 and the amounts are now considered final . |
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 h edge 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 inv entory purchase commitments with foreign suppliers. Our foreign currency forward agreements related to forecasted inventory purchase commitments are designated as cash flow hedges. For cash flow hedges, the effective portion of the changes in the fair v alue 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 transa ction 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 . 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 . |
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 identifiable 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 relationships and lists and non-compete agreements), property, plant and equipment, deferred taxes and other current and long-term assets and liabilities. The estimated fair value of identifiable intangible assets is based on critical estimates, judgments and assumptions derived from: analysis of market conditions; discount rates ; discounted cash flows; customer retention rates; and estimated useful lives. Some prior owners of such acquired subsidiaries are eligible to receive additional purchase price cash consideration if cert ain financial targets are met. For the year s ended December 29, 2018 , December 30, 2017 and December 31, 2016 , there were no material adjustments recorded in our consolidated statement of income relating to changes in estimated contingent purchase price liabilities. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Some minority s tockholders 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 rede emable noncontrolling interests cannot go below the floor level. These adjustments do not impact the calculation of earnings per share. Noncontrolling Interests Noncontrolling interests represent our less than 50% ownership interest in an acquired subsi diary. Our net income is reduced by the portion of the subsidiaries net income that is attributable to noncontrolling interests. |
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 29, 2018 and December 30, 2017 , and December 31, 2016 we tested goodwill for imp airment using a quantitative analysis consisting of 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 un its 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 l oss, if any, that we would record for such reporting 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 c ash 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 profits and operating profits and projected capital ex penditures. 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 th at are based upon future growth projections. 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 for ecasted 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 assess the potent ial 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 fac tors we consider important that could trigger an interim impairment review include: significant 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, w e record an impairment charge in our consolidated statements of income. For the year s ended December 29, 2018 , December 30, 2017 and December 31, 2016 , 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-liv ed 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 carryi ng 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 different practices of categorizing costs associated with d istribution networks throughout our industry, our gross margins may not necessarily be comparable to other distribution companies. Total distribution network costs were $ 87.3 million, $ 83.2 million and $ 79.4 million for the years ende d December 29, 2018 , December 30, 2017 and December 31, 2016 . |
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) from foreign currency hedging activities, unrealized investment gain (loss) and pension adjustment gain (loss). |
Recently Issued Accounting Standards | Accounting Pronouncements Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, Accounting Standards Codification (“ASC”) 606 (“Topic 606”). We adopted the provisions of this standard as of December 31, 2017, on a modified retrospective basis. We applied the requirements of the new standard only to contracts that were not completed as of the adoption date. We recorded an immaterial adjustment to the opening balance of retained earnings for the adoption of Topic 606. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The impact of the new standard on our c onsolidated statements of income, which we expect to be immaterial on an ongoing basis, is primarily related to software sales and sales commissions and is described as follows: Software Sales For software licenses sold together with post contract suppor t (PCS), we previously deferred software revenue if it did not have vendor-specific evidence of fair value of the PCS. Under Topic 606, the concept of vendor-specific objective evidence is eliminated and there are no cases where revenue is deferred due to a lack of standalone selling price. In addition, we previously recognized revenue from term licenses ratably over the contract term. Under Topic 606, such licenses represent a right to use intellectual property and therefore require upfront recognition. Furthermore, certain upfront fees related to service arrangements were previously deferred and recognized over the estimated customer life. Under Topic 606, the period over which we will recognize these fees is reduced, as the upfront fee represents add itional contract price which will be allocated to the performance obligations in the contract and recognized as those performance obligations are satisfied, rather than being amortized over the estimated customer life. Based on the aforementioned changes, such software revenue will be recognized sooner than under the previous revenue recognition standard. Sales Commissions We previously recognized sales commissions as an expense when incurred. Under Topic 606, we defer such sales commissions as costs t o obtain a contract when the costs are incremental and expected to be recovered. Deferred sales commissions are amortized over the estimated customer relationship period. We apply the practical expedient to expense, as incurred, commissions with an expec ted amortization period of one year or less. The impact of adoption on our consolidated balance sheet and income statement was as follows: As of December 29, 2018 Balances Effect of As Without Adoption Change Balance Sheet Reported of Topic 606 Increase/(Decrease) Assets: Prepaid expenses and other $ 520,558 $ 520,778 $ (220) Investments and other 538,370 535,879 2,491 Liabilities: Accrued expenses -Taxes $ 172,165 $ 171,809 $ 356 Accrued expenses - Other 579,276 581,138 (1,862) Deferred income taxes 31,570 30,979 591 Other liabilities (long-term) 392,313 393,024 (711) Stockholders' equity: Retained earnings $ 3,208,589 $ 3,204,548 $ 4,041 Accumulated other comprehensive loss $ (248,771) $ (248,627) $ (144) Year Ended December 29, 2018 Balances Without Effect of Adoption Change Statement of Income As Reported of Topic 606 Increase/ (Decrease) Net sales: Dental $ 6,348,945 $ 6,348,945 $ - Animal Health 3,682,639 3,682,639 - Medical 2,661,166 2,661,166 - Total healthcare distribution $ 12,692,750 $ 12,692,750 $ - Technology and value-added services 509,245 508,939 306 Total $ 13,201,995 $ 13,201,689 $ 306 Costs and expenses: Cost of sales 9,606,911 9,606,911 - Selling, general and administrative 2,701,876 2,702,552 (676) Income taxes (155,492) (155,347) 145 Net income $ 562,126 $ 561,289 $ 837 Additional information related to Topic 606 can be found below in “Critical Accounting Policies and Estimates” as well as in Note 15 . In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes, Intra-Entity Transfers of Assets Other Than Inventory” (“Topic 740”). Topic 740 requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period which the transfer occurs. Previously, companies were required to defer the income tax effect s on intercompany transfer of assets until the asset has been sold to an outside party. On December 31, 2017, we adopted the guidance, which is effective for annual periods and related interim periods beginning after December 15, 2017 on a modified retrosp ective basis. As a result of the adoption of Topic 740, we have recorded an immaterial adjustment to the opening balance of retained earnings and a reduction to prepaid assets. The cumulative effect of the changes made to our consolidated balance sheet as of December 31, 2017 related to Topic 606 and Topic 740 were as follows: Balance at December 30, Adjustments Adjustments Balance at 2017 Due To Due To December 31, (As Reported) Topic 606 Topic 740 2017 Assets: Prepaid expenses and other $ 454,752 $ 119 $ (610) $ 454,261 Investments and other 432,002 1,133 - 433,135 Liabilities: Accrued expenses - Taxes $ 188,873 $ 437 $ - $ 189,310 Accrued expenses - Other 455,780 (2,614) - 453,166 Deferred income taxes 50,431 471 - 50,902 Other liabilities (long-term) 420,285 (246) - 420,039 Stockholders' equity: Retained earnings $ 2,940,029 $ 3,204 $ (610) $ 2,942,623 Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842) (“ASU 2016-02”), which will require lessees to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current accounting principles generally accepted in the United States (“U.S. GAAP”), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current U.S. GAAP, which requires only capital leases to be recognized on the balance sheet, the new guidance will require both types of leases to be recognized on the balance sheet. The ASU is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. In August 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” which permits adoption of the guidance in ASU 2016-02 using either a modified ret rospective transition, requiring application at the beginning of the earliest comparative period presented or a transition method whereby companies could continue to apply existing lease guidance during the comparative periods and apply the new lease requi rements through a cumulative-effect adjustment in the period of adoption rather than in the earliest period presented without adjusting historical financial statements. We will use the modified retrospective transition approach in ASU No. 2018-11 and ap ply the new lease requirements through a cumulative-effect adjustment in the period of adoption. We are currently finalizing the effects that the adoption of ASU 2016-02 will have on our consolidated financial statements, but anticipate that the new guida nce will significantly impact our consolidated balance sheet as we will recognize right of use assets and lease liabilities for our operating leases. The new standard provides a number of optional practical expedients in transition. We expect to elect the package of practical expedients, which permits us not to reassess, under the new standard, our prior conclusions about lease identification, lease classification and initial direct costs. We do not expect to elect the use-of-hindsight or the practical exp edient pertaining to land easements; the latter not being applicable to us. We do not expect that this accounting standard will have a material impact on our debt covenants. We also do not expect that the implementation of this standard will have a mater ial impact on our results of operations. We are implementing a new lease accounting system and updating our processes in preparation for the adoption of the new standard. 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 financial assets held at amortized cost. This ASU is effective for interim and annual reporting periods begin ning after December 15, 2019 . This ASU is required to be adopted using the modified retrospective basis, with a cumulative-effect adjustment to retai ned 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 our financial asset portfolio, past receivables loss activity and current known activity regarding our outstanding receivables , we do not expect that this ASU will have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other” (Topic 350) (“ASU 2017-04”). ASU 2017-04 eliminates step two fro m the goodwill impairment test, thereby eliminating the requirement to calculate the implied fair value of a reporting unit. ASU 2017-04 will require us to perform our annual goodwill impairment test by comparing the fair value of our reporting units to t he carrying value of those units. If the carrying value exceeds the fair value, we will be required to recognize an impairment charge; however, the impairment charge should not exceed the amount of goodwill allocated to such reporting unit. ASU 2017-04 i s required to be implemented on a prospective basis for fiscal years beginning after December 15, 2019. We do not expect that the requirements of ASU 2017-04 will have a material impact on our consolidated financial statements. In August 2017, the FASB i ssued ASU No. 2017-12, “Derivatives and Hedging” (Topic 815) (“ASU 2017-12”), which simplifies the requirements for hedge accounting, more closely aligns hedge accounting with risk management activities and increases transparency of the scope and results o f hedging activities. This ASU amends the presentation and disclosure requirements and changes how we can assess the effectiveness of our hedging relationships. This ASU will make more financial and nonfinancial hedging strategies eligible for hedge accou nting. ASU 2017-12 is required to be implemented for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. We do not expect that the requirements of ASU 2017-12 will have a material impact on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, "Treatment of Stranded Tax Effects in Accumulated Other Comprehensive Income Resulting From the Tax Cuts and Jobs Act of 2017 " which allows the reclassification from accumulated comprehensive income to retained earnings the income tax effects resulting from the Tax Act. This ASU is effective for interim and annual reporting periods beginni ng after December 15, 2018 . We do not expect that the requirements of ASU 2018-02 will have a material impact on our consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, “Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”), which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods a nd services from nonemployees. ASU 2018-07 simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees. ASU 2018-07 is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We do not expect that the requirements of ASU-2018-07 will have a material impact on our consolidated financial statements. In August 2018 , the FASB issued ASU No. 2018-15, “Intangibles – Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements t hat include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. ASU 2018-15 is effective for public business entities for fiscal year s beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We do not expect that the requirements of this ASU will have a material impact on our consolidated financial statements. |
Overview and Significant Acco_2
Overview and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Overview and Significant Accounting Policies [Abstract] | |
The impact of adoption on our consolidated income statement and balance sheet and the cumulative effect of the changes made to our consolidated balance sheet | As of December 29, 2018 Balances Effect of As Without Adoption Change Balance Sheet Reported of Topic 606 Increase/(Decrease) Assets: Prepaid expenses and other $ 520,558 $ 520,778 $ (220) Investments and other 538,370 535,879 2,491 Liabilities: Accrued expenses -Taxes $ 172,165 $ 171,809 $ 356 Accrued expenses - Other 579,276 581,138 (1,862) Deferred income taxes 31,570 30,979 591 Other liabilities (long-term) 392,313 393,024 (711) Stockholders' equity: Retained earnings $ 3,208,589 $ 3,204,548 $ 4,041 Accumulated other comprehensive loss $ (248,771) $ (248,627) $ (144) Year Ended December 29, 2018 Balances Without Effect of Adoption Change Statement of Income As Reported of Topic 606 Increase/ (Decrease) Net sales: Dental $ 6,348,945 $ 6,348,945 $ - Animal Health 3,682,639 3,682,639 - Medical 2,661,166 2,661,166 - Total healthcare distribution $ 12,692,750 $ 12,692,750 $ - Technology and value-added services 509,245 508,939 306 Total $ 13,201,995 $ 13,201,689 $ 306 Costs and expenses: Cost of sales 9,606,911 9,606,911 - Selling, general and administrative 2,701,876 2,702,552 (676) Income taxes (155,492) (155,347) 145 Net income $ 562,126 $ 561,289 $ 837 Balance at December 30, Adjustments Adjustments Balance at 2017 Due To Due To December 31, (As Reported) Topic 606 Topic 740 2017 Assets: Prepaid expenses and other $ 454,752 $ 119 $ (610) $ 454,261 Investments and other 432,002 1,133 - 433,135 Liabilities: Accrued expenses - Taxes $ 188,873 $ 437 $ - $ 189,310 Accrued expenses - Other 455,780 (2,614) - 453,166 Deferred income taxes 50,431 471 - 50,902 Other liabilities (long-term) 420,285 (246) - 420,039 Stockholders' equity: Retained earnings $ 2,940,029 $ 3,204 $ (610) $ 2,942,623 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, including related estimated useful lives | December 29, December 30, 2018 2017 Land $ 20,400 $ 21,019 Buildings and permanent improvements 144,407 143,250 Leasehold improvements 115,993 106,236 Machinery and warehouse equipment 150,672 138,478 Furniture, fixtures and other 151,999 149,136 Computer equipment and software 463,240 432,379 1,046,711 990,498 Less accumulated depreciation (664,313) (615,497) Property and equipment, net $ 382,398 $ 375,001 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 Intangible_2
Goodwill and Other Intangibles, Net (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 31, 2016 $ 1,831,535 $ 188,205 $ 2,019,740 Adjustments to goodwill: Acquisitions 216,144 8,736 224,880 Foreign currency translation 48,915 7,796 56,711 Balance as of December 30, 2017 2,096,594 204,737 2,301,331 Adjustments to goodwill: Acquisitions 40,437 530,012 570,449 Foreign currency translation (46,590) (4,895) (51,485) Balance as of December 29, 2018 $ 2,090,441 $ 729,854 $ 2,820,295 |
Other intangible assets - finite-lived | December 29, 2018 December 30, 2017 Accumulated Accumulated Cost Amortization Net Cost Amortization Net Non-compete agreements $ 38,384 $ (9,224) $ 29,160 $ 41,758 $ (9,539) $ 32,219 Trademarks / trade names - definite lived 113,286 (59,038) 54,248 151,918 (76,497) 75,421 Customer relationships and lists 847,561 (409,301) 438,260 851,339 (355,327) 496,012 Product Development 79,363 (37,373) 41,990 77,958 (37,105) 40,853 Other 64,913 (44,327) 20,586 58,582 (33,446) 25,136 Total $ 1,143,507 $ (559,263) $ 584,244 $ 1,181,555 $ (511,914) $ 669,641 |
Investments and Other (Tables)
Investments and Other (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Investments And Other [Abstract] | |
Investments and other | December 29, December 30, 2018 2017 Investment in unconsolidated affiliates $ 283,091 $ 268,364 Non-current deferred foreign, state and local income taxes 83,242 10,962 Notes receivable (1) 66,652 35,015 Capitalized costs for internally generated software for resale 40,070 35,359 Distribution rights and exclusivity agreements, net of amortization 582 1,378 Acquisition related indemnification 47,828 65,558 Other long-term assets 16,905 15,366 Total $ 538,370 $ 432,002 (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. 29, 2018 | |
Debt [Abstract] | |
Private placement corrowing facilities | Amount of Date of Borrowing Borrowing 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) 28,571 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 June 16, 2017 100,000 3.42 June 16, 2027 September 15, 2017 100,000 3.52 September 15, 2029 January 2, 2018 100,000 3.32 January 2, 2028 Less: Deferred debt issuance costs (382) $ 628,189 (1) Annual repayments of approximately $7.1 million for this borrowing commenced on January 20, 2016. |
Schedule of long-term debt | December 29, December 30, 2018 2017 Private placement facilities $ 628,189 $ 535,295 U.S. trade accounts receivable securitization 350,000 350,000 Various collateralized and uncollateralized loans payable with interest, in varying installments through 2023 at interest rates ranging from 2.61% to 5.01% at December 29, 2018 and ranging from 2.56% to 12.90% at December 30, 2017 29,491 34,027 Capital lease obligations (see Note 18) 5,148 5,093 Total 1,012,828 924,415 Less current maturities (8,955) (16,659) Total long-term debt $ 1,003,873 $ 907,756 |
Schedule of long-term debt maturities | 2019 $ 8,955 2020 458,445 2021 108,050 2022 30,421 2023 3,671 Thereafter 403,286 Total $ 1,012,828 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Change in fair value of redeemable noncontrolling interests | December 29, December 30, December 31, 2018 2017 2016 Balance, beginning of period $ 832,138 $ 607,636 $ 542,194 Decrease in redeemable noncontrolling interests due to redemptions (669,947) (48,669) (72,729) Increase in redeemable noncontrolling interests due to business acquisitions 10,294 78,939 58,172 Net income attributable to redeemable noncontrolling interests 21,848 52,203 48,760 Dividends declared (18,065) (28,161) (32,973) Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests (13,031) 7,461 (2,652) Change in fair value of redeemable securities 148,919 162,729 66,864 Balance, end of period $ 312,156 $ 832,138 $ 607,636 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |
Accumulated other comprehensive income, net of applicable taxes | December 29, December 30, December 31, 2018 2017 2016 Attributable to Redeemable noncontrolling interests: Foreign currency translation adjustment $ (18,595) $ (5,564) $ (13,025) Attributable to noncontrolling interests: Foreign currency translation adjustment $ (426) $ 539 $ (113) Attributable to Henry Schein, Inc.: Foreign currency translation loss $ (234,799) $ (112,439) $ (296,212) Unrealized loss from foreign currency hedging activities (156) (782) (53) Unrealized investment loss (6) (3) - Pension adjustment loss (13,810) (16,843) (20,776) Accumulated other comprehensive loss $ (248,771) $ (130,067) $ (317,041) Total Accumulated other comprehensive loss $ (267,792) $ (135,092) $ (330,179) |
Components of comprehensive income, net of applicable taxes | December 29, December 30, December 31, 2018 2017 2016 Net income $ 562,126 $ 459,293 $ 556,395 Foreign currency translation gain (loss) (136,356) 191,886 (98,402) Tax effect - - - Foreign currency translation gain (loss) (136,356) 191,886 (98,402) Unrealized gain (loss) from foreign currency hedging activities 1,022 (1,515) (1,025) Tax effect (396) 786 33 Unrealized gain (loss) from foreign currency hedging activities 626 (729) (992) Unrealized investment gain (loss) (3) (4) 2 Tax effect - 1 - Unrealized investment gain (loss) (3) (3) 2 Pension adjustment gain (loss) 4,212 4,247 (947) Tax effect (1,179) (314) 548 Pension adjustment gain (loss) 3,033 3,933 (399) Comprehensive income $ 429,426 $ 654,380 $ 456,604 |
Components of foreign currency translation gain (loss) by foreign currency | Foreign Currency Translation Gain (Loss) for the Year Ended FX Rate in USD December 29, December 29, December 30, Currency 2018 2018 2017 Euro $ (40,681) 1.14 1.20 Brazilian Real (27,313) 0.26 0.30 Australian Dollar (25,639) 0.70 0.78 British Pound (21,329) 1.26 1.35 Canadian Dollar (9,111) 0.73 0.80 Polish Zloty (5,025) 0.27 0.29 Swiss Franc (2,442) 1.01 1.03 All other currencies (4,816) Total $ (136,356) Foreign Currency Translation Gain (Loss) for the Year Ended FX Rate in USD December 30, December 30, December 31, Currency 2017 2017 2016 Euro $ 113,259 1.20 1.05 Brazilian Real (2,411) 0.30 0.31 Australian Dollar 15,124 0.78 0.72 British Pound 28,001 1.35 1.23 Canadian Dollar 9,403 0.80 0.74 Polish Zloty 11,058 0.29 0.24 Swiss Franc 5,544 1.03 0.98 All other currencies 11,908 Total $ 191,886 Foreign Currency Translation Gain (Loss) for the Year Ended FX Rate in USD December 31, December 31, December 26, Currency 2016 2016 2015 Euro $ (41,245) 1.05 1.10 Brazilian Real 2,856 0.31 0.25 Australian Dollar (562) 0.72 0.73 British Pound (53,723) 1.23 1.49 Canadian Dollar 3,345 0.74 0.72 Polish Zloty (3,849) 0.24 0.26 Swiss Franc (2,365) 0.98 1.01 All other currencies (2,859) Total $ (98,402) |
Total comprehensive income, net of applicable taxes | December 29, December 30, December 31, 2018 2017 2016 Comprehensive income attributable to Henry Schein, Inc. $ 417,177 $ 593,273 $ 409,676 Comprehensive income attributable to noncontrolling interests 3,432 1,443 820 Comprehensive income attributable to Redeemable noncontrolling interests 8,817 59,664 46,108 Comprehensive income $ 429,426 $ 654,380 $ 456,604 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value Measurements [Abstract] | |
Fair value - assets and liabilities measured and recognized on a recurring basis | December 29, 2018 Level 1 Level 2 Level 3 Total Assets: Derivative contracts $ - $ 12,533 $ - $ 12,533 Total assets $ - $ 12,533 $ - $ 12,533 Liabilities: Derivative contracts $ - $ 1,708 $ - $ 1,708 Total liabilities $ - $ 1,708 $ - $ 1,708 Redeemable noncontrolling interests $ - $ - $ 312,156 $ 312,156 December 30, 2017 Level 1 Level 2 Level 3 Total Assets: Derivative contracts $ - $ 11,799 $ - $ 11,799 Total assets $ - $ 11,799 $ - $ 11,799 Liabilities: Derivative contracts $ - $ 2,089 $ - $ 2,089 Total liabilities $ - $ 2,089 $ - $ 2,089 Redeemable noncontrolling interests $ - $ - $ 832,138 $ 832,138 |
Plans of Restructuring (Tables)
Plans of Restructuring (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve by type of cost | Facility Severance Closing Costs Costs Other Total 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 Provision - - - - Payments and other adjustments (19,136) (1,139) (871) (21,146) Balance, December 30, 2017 $ 3,218 $ 1,315 $ 24 $ 4,557 Provision 58,154 3,607 1,151 62,912 Payments and other adjustments (30,649) (3,167) (1,017) (34,833) Balance, December 29, 2018 $ 30,723 $ 1,755 $ 158 $ 32,636 |
Schedule of restructuring reserve by segment | Technology and Health Care Value-Added Distribution Services Total 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 Provision - - - Payments and other adjustments (20,681) (465) (21,146) Balance, December 30, 2017 $ 4,557 $ - $ 4,557 Provision 59,126 3,786 62,912 Payments and other adjustments (32,483) (2,350) (34,833) Balance, December 29, 2018 $ 31,200 $ 1,436 $ 32,636 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted shares used to calculate earnings per share | Years Ended December 29, December 30, December 31, 2018 2017 2016 Basic 152,656 156,787 161,641 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 1,051 1,421 2,082 Diluted 153,707 158,208 163,723 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Taxes [Abstract] | |
Income before taxes, equity in earnings of affiliates and loss on sale of equity investment | Years ended December 29, December 30, December 31, 2018 2017 2016 Domestic $ 505,877 $ 649,657 $ 625,792 Foreign 189,471 173,191 130,043 Total $ 695,348 $ 822,848 $ 755,835 |
Provision for income taxes attributable to continuing operations | Years ended December 29, December 30, December 31, 2018 2017 2016 Current income tax expense: U.S. Federal $ 93,209 $ 283,417 $ 185,438 State and local 35,197 28,520 28,229 Foreign 68,299 50,084 41,357 Total current 196,705 362,021 255,024 Deferred income tax expense (benefit): U.S. Federal (9,331) 13,686 (18,090) State and local (4,625) 856 (4,809) Foreign (27,257) (14,057) (14,167) Total deferred (41,213) 485 (37,066) Total provision $ 155,492 $ 362,506 $ 217,958 |
Tax effects of temporary differences to deferred income tax asset (liability) | Years Ended December 29, December 30, 2018 2017 Deferred income tax asset: Investment in partnerships $ 76,232 $ 22,600 Net operating losses and other carryforwards 44,630 48,711 Inventory, premium coupon redemptions and accounts receivable valuation allowances 25,270 23,715 Stock-based compensation 18,473 22,525 Uniform capitalization adjustment to inventories 8,189 6,591 Other asset 38,514 13,669 Total deferred income tax asset 211,308 137,811 Valuation allowance for deferred tax assets (1) (23,535) (31,223) Net deferred income tax asset 187,773 106,588 Deferred income tax liability Intangibles amortization (122,805) (132,280) Property and equipment (13,296) (13,777) Total deferred tax liability (136,101) (146,057) Net deferred income tax asset (liability) (2) $ 51,672 $ (39,469) (1) 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.” (2) 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. |
Reconciliation of income tax provision at federal statutory rate to total income tax provision | Years ended December 29, December 30, December 31, 2018 2017 2016 Income tax provision at federal statutory rate $ 146,023 $ 287,996 $ 264,542 State income tax provision, net of federal income tax effect 16,271 12,457 11,236 Foreign income tax provision (420) (24,433) (18,036) Pass through noncontrolling interest (4,595) (11,623) (13,083) Valuation allowance 2,037 1,008 1,472 Unrecognized tax benefits and audit settlements 4,166 3,899 3,066 Interest expense related to loans (11,925) (18,717) (21,737) Excess tax benefits related to stock compensation (837) (17,387) - Transition tax on deemed repatriation of foreign earnings (10,000) 140,000 - Revaluation of deferred tax assets and liabilities (1,676) 2,953 - Tax on global intangible low-taxed income ("GILTI") 7,455 - - Transaction costs related to Animal Health spin-off 7,325 - - Tax benefit related to legal entity reorganization outside the U.S. (13,852) - - Tax charge related to reorganization of legal entities related to forming Henry Schein One 3,914 - - Tax charge related to reorganization of legal entities completed in preparation for the Animal Health spin-off 3,135 - - Other 8,471 (13,647) (9,502) Total income tax provision $ 155,492 $ 362,506 $ 217,958 |
Reconciliation of unrecognized tax benefits excluding the effect of deferred taxes | December 29, December 30, December 31, 2018 2017 2016 Balance, beginning of period $ 90,900 $ 90,400 $ 77,600 Additions based on current year tax positions 5,000 8,500 7,300 Additions based on prior year tax positions 11,600 6,100 20,400 Reductions based on prior year tax positions (1,700) (800) (900) Reductions resulting from settlements with taxing authorities (1,900) (10,500) (9,700) Reductions resulting from lapse in statutes of limitations (20,400) (2,800) (4,300) Balance, end of period $ 83,500 $ 90,900 $ 90,400 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contracts with Customers [Abstract] | |
Disaggregation of Revenue | Year Ended December 29, 2018 North America International Global Net sales: Health care distribution Dental $ 3,867,118 $ 2,481,827 $ 6,348,945 Animal health 1,865,316 1,817,323 3,682,639 Medical 2,581,696 79,470 2,661,166 Total health care distribution 8,314,130 4,378,620 12,692,750 Technology and value-added services 426,653 82,592 509,245 Total $ 8,740,783 $ 4,461,212 $ 13,201,995 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Business segment information | Years Ended December 29, December 30, December 31, 2018 2017 2016 Net Sales: Health care distribution (1): Dental $ 6,348,945 $ 6,048,813 $ 5,555,299 Animal health 3,682,639 3,476,635 3,253,095 Medical 2,661,166 2,497,994 2,337,661 Total health care distribution 12,692,750 12,023,442 11,146,055 Technology and value-added services (2) 509,245 438,101 425,613 Total $ 13,201,995 $ 12,461,543 $ 11,571,668 (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 29, December 30, December 31, 2018 2017 2016 Operating Income: Health care distribution $ 618,788 $ 728,520 $ 652,106 Technology and value-added services 134,264 130,849 119,468 Total $ 753,052 $ 859,369 $ 771,574 Income before taxes and equity in earnings of affiliates: Health care distribution $ 563,006 $ 696,453 $ 640,184 Technology and value-added services 132,342 126,395 115,651 Total $ 695,348 $ 822,848 $ 755,835 Depreciation and Amortization: Health care distribution $ 179,760 $ 168,186 $ 146,276 Technology and value-added services 27,800 24,886 23,504 Total $ 207,560 $ 193,072 $ 169,780 Income Tax Expense: Health care distribution $ 101,179 $ 325,302 $ 185,571 Technology and value-added services 54,313 37,204 32,387 Total $ 155,492 $ 362,506 $ 217,958 Interest Income: Health care distribution $ 20,849 $ 17,318 $ 13,086 Technology and value-added services 387 235 189 Total $ 21,236 $ 17,553 $ 13,275 Interest Expense: Health care distribution $ 78,769 $ 53,607 $ 31,845 Technology and value-added services 17 47 48 Total $ 78,786 $ 53,654 $ 31,893 Purchases of Fixed Assets: Health care distribution $ 87,131 $ 76,449 $ 66,611 Technology and value-added services 3,506 5,052 3,568 Total $ 90,637 $ 81,501 $ 70,179 As of December 29, December 30, December 31, 2018 2017 2016 Total Assets: Health care distribution $ 7,375,723 $ 7,399,718 $ 6,377,253 Technology and value-added services 1,124,804 464,277 434,510 Total $ 8,500,527 $ 7,863,995 $ 6,811,763 |
Operations by geographic area | 2018 2017 2016 Net Sales Long-Lived Assets Net Sales Long-Lived Assets Net Sales Long-Lived Assets United States $ 8,348,398 $ 2,522,477 $ 7,904,698 $ 2,000,624 $ 7,536,897 $ 1,803,689 Other 4,853,597 1,264,459 4,556,845 1,345,349 4,034,771 1,171,137 Consolidated total $ 13,201,995 $ 3,786,936 $ 12,461,543 $ 3,345,973 $ 11,571,668 $ 2,974,826 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Compensation Related Costs [Abstract] | |
Summary of the stock option activity under the plans | Years Ended December 29, December 30, December 31, 2018 2017 2016 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 155 $ 29.65 353 $ 28.59 769 $ 28.00 Granted - - - - - - Exercised (153) 29.81 (198) 27.76 (416) 27.49 Forfeited - - - - - - Outstanding at end of year 2 $ 17.22 155 $ 29.65 353 $ 28.59 Options exercisable at end of year 2 $ 17.22 155 $ 29.65 353 $ 28.59 |
Intrinsic values | As of December 29, December 30, December 31, 2018 2017 2016 Stock options outstanding $ 121 $ 6,256 $ 16,681 Stock options exercisable 121 6,256 16,681 |
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 1,233 $ 70.28 Granted 367 66.00 Vested (312) 62.98 Forfeited (88) 77.67 Outstanding at end of period 1,200 $ 70.33 $ 77.92 Performance-Based Restricted Stock/Units Weighted Average Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Outstanding at beginning of period 1,226 $ 60.81 Granted 200 72.16 Vested (426) 71.33 Forfeited (80) 77.27 Outstanding at end of period 920 $ 50.86 $ 77.92 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases | 2019 $ 78,940 2020 61,605 2021 44,574 2022 31,501 2023 23,365 Thereafter 68,373 Total minimum operating lease payments $ 308,358 |
Capital leases | 2019 $ 1,695 2020 1,134 2021 710 2022 313 2023 291 Thereafter 1,430 Total minimum capital lease payments 5,573 Less: Amount representing interest at 0.07% to 19.79% (425) Total present value of minimum capital lease payments $ 5,148 |
Purchase commitments | 2019 $ 499,346 2020 215,445 2021 230,967 2022 124,465 2023 446 Thereafter - Total minimum inventory purchase commitment payments $ 1,070,669 |
Quarterly Information (Unaudi_2
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly financial information (unaudited) | Quarters ended March 31, June 30, September 29, December 29, 2018 (1) 2018 (1) 2018 (1) 2018 (1) Net sales $ 3,220,439 $ 3,326,676 $ 3,279,678 $ 3,375,202 Gross profit 895,592 901,072 888,560 909,860 Litigation settlements - - 38,488 - Transaction costs related to Animal Health spin-off 3,777 7,611 7,282 20,086 Restructuring costs 3,762 14,896 8,853 35,401 Operating income 206,142 201,349 165,926 179,635 Net income 148,631 147,509 126,976 139,010 Amounts attributable to Henry Schein, Inc.: Net income 140,218 141,212 121,478 132,973 Earnings per share attributable to Henry Schein, Inc.: Basic $ 0.92 $ 0.92 $ 0.80 $ 0.88 Diluted 0.91 0.92 0.79 0.87 Quarters ended April 1, July 1, September 30, December 30, 2017 (2) 2017 (2) 2017 (2) 2017 (2) Net sales $ 2,922,948 $ 3,059,458 $ 3,161,083 $ 3,318,054 Gross profit 822,920 839,173 836,054 900,956 Litigation settlement - 5,325 - - Operating income 193,968 210,662 213,548 241,191 Net income 150,253 149,582 150,948 8,510 Amounts attributable to Henry Schein, Inc.: Net income (loss) 140,748 136,055 138,031 (8,535) Earnings (loss) per share attributable to Henry Schein, Inc.: Basic $ 0.89 $ 0.86 $ 0.88 $ (0.06) Diluted 0.88 0.86 0.87 (0.06) (1) See Note 10 - "Plans of Restructuring" for details of the restructuring costs incurred during the fiscal year of 2018. (2) See Item 5 - "Purchases of Equity Securities by the Issuer" for details of the 2-for-1 split of our common stock, during the third quarter of 2017. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash paid for interest and income taxes | Years ended December 29, December 30, December 31, 2018 2017 2016 Interest $ 72,310 $ 49,311 $ 29,391 Income taxes 248,245 221,832 205,196 |
Significant Accounting Polici_2
Significant Accounting Policies (Details) | Aug. 16, 2017 | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Fiscal year duration | 365 days | 365 days | 372 days | |
Outstanding checks in excess of funds on deposit classified as accounts payable | $ 72,000,000 | $ 83,600,000 | ||
Selling, general and administrative | 9,606,911,000 | 9,062,440,000 | $ 8,345,195,000 | |
Advertising and promotional costs | $ 28,900,000 | $ 15,700,000 | $ 18,400,000 | |
Percentage ownership of subsidiaries included in consolidated tax return | 80.00% | 80.00% | 80.00% | |
Goodwill impairment loss | $ 0 | $ 0 | $ 0 | |
Total distribution network costs | 87,300,000 | 83,200,000 | 79,400,000 | |
Income taxes | (155,492,000) | (362,506,000) | $ (217,958,000) | |
Contract with Customer, Liability, Current | 83,600,000 | 85,700,000 | ||
Contract with Customer, Liability, Noncurrent | 5,300,000 | 5,200,000 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity, Consolidated, Assets, Pledged | 422,000,000 | 422,000,000 | ||
Variable Interest Entity, Consolidated, Liabilities, Recourse | $ 350,000,000 | 350,000,000 | ||
Common Stock [Member] | ||||
Stock split, conversion ratio | 2 | |||
Stock split, description | On August 16, 2017, we announced that our Board of Directors approved a two-for-one stock split of our common stock. Each Henry Schein, Inc. stockholder of record at the close of business on September 1, 2017 received a distribution of one additional share for every share held. Trading began on a split-adjusted basis on September 15, 2017. | |||
Accounting Standards Update 2016-09 [Member] | ||||
Income taxes | $ 19,600,000 | |||
Minimum [Member] | ||||
Fiscal year duration | 365 days | |||
Maximum [Member] | ||||
Fiscal year duration | 372 days |
Overview and Significant Acco_3
Overview and Significant Accounting Policies - Topic 606, the disclosure of the impact of adoption on our consolidated balance sheet and income statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | ||
Assets | |||||||||||||
Prepaid expenses and other | $ 520,558 | $ 454,752 | $ 520,558 | $ 454,752 | $ 454,261 | ||||||||
Investments and other | 538,370 | 432,002 | 538,370 | 432,002 | 433,135 | ||||||||
Liabilities | |||||||||||||
Accrued Expenses - Taxes | 172,165 | 188,873 | 172,165 | 188,873 | 189,310 | ||||||||
Accrued Expenses - Other | 579,276 | 455,780 | 579,276 | 455,780 | 453,166 | ||||||||
Deferred income taxes | 31,570 | 50,431 | 31,570 | 50,431 | 50,902 | ||||||||
Other Liabilities (long-term) | 392,313 | 420,285 | 392,313 | 420,285 | 420,039 | ||||||||
Stockholders' equity | |||||||||||||
Retained earnings | 3,208,589 | 2,940,029 | 3,208,589 | 2,940,029 | 2,942,623 | ||||||||
Accumulated other comprehensive loss | (248,771) | (130,067) | (248,771) | (130,067) | $ (317,041) | ||||||||
Income Statement | |||||||||||||
Revenues | 3,375,202 | $ 3,279,678 | $ 3,326,676 | $ 3,220,439 | 3,318,054 | $ 3,161,083 | $ 3,059,458 | $ 2,922,948 | 13,201,995 | 12,461,543 | 11,571,668 | ||
Cost and expenses | |||||||||||||
Cost of sales | 9,606,911 | 9,062,440 | 8,345,195 | ||||||||||
Selling, general and administrative | 2,701,876 | 2,534,409 | 2,409,008 | ||||||||||
Income taxes | (155,492) | (362,506) | (217,958) | ||||||||||
Net income | 139,010 | $ 126,976 | $ 147,509 | $ 148,631 | $ 8,510 | $ 150,948 | $ 149,582 | $ 150,253 | 562,126 | 459,293 | 556,395 | ||
Accounting Standards Update 2014-09 [Member] | |||||||||||||
Assets | |||||||||||||
Prepaid expenses and other | 119 | ||||||||||||
Investments and other | 1,133 | ||||||||||||
Liabilities | |||||||||||||
Accrued Expenses - Taxes | 437 | ||||||||||||
Accrued Expenses - Other | (2,614) | ||||||||||||
Deferred income taxes | 471 | ||||||||||||
Other Liabilities (long-term) | (246) | ||||||||||||
Stockholders' equity | |||||||||||||
Retained earnings | $ 3,204 | ||||||||||||
Healthcare Distribution [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | [1] | 12,692,750 | 12,023,442 | 11,146,055 | |||||||||
Cost and expenses | |||||||||||||
Income taxes | (101,179) | (325,302) | (185,571) | ||||||||||
Healthcare Distribution [Member] | Dental [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 6,348,945 | 6,048,813 | 5,555,299 | ||||||||||
Healthcare Distribution [Member] | Animal Health [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 3,682,639 | 3,476,635 | 3,253,095 | ||||||||||
Healthcare Distribution [Member] | Medical [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 2,661,166 | 2,497,994 | 2,337,661 | ||||||||||
Technology and Value-Added Services [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | [2] | 509,245 | 438,101 | 425,613 | |||||||||
Cost and expenses | |||||||||||||
Income taxes | (54,313) | $ (37,204) | $ (32,387) | ||||||||||
Balances Without Adoption of Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Assets | |||||||||||||
Prepaid expenses and other | 520,778 | 520,778 | |||||||||||
Investments and other | 535,879 | 535,879 | |||||||||||
Liabilities | |||||||||||||
Accrued Expenses - Taxes | 171,809 | 171,809 | |||||||||||
Accrued Expenses - Other | 581,138 | 581,138 | |||||||||||
Deferred income taxes | 30,979 | 30,979 | |||||||||||
Other Liabilities (long-term) | 393,024 | 393,024 | |||||||||||
Stockholders' equity | |||||||||||||
Retained earnings | 3,204,548 | 3,204,548 | |||||||||||
Accumulated other comprehensive loss | (248,627) | (248,627) | |||||||||||
Income Statement | |||||||||||||
Revenues | 13,201,689 | ||||||||||||
Cost and expenses | |||||||||||||
Cost of sales | 9,606,911 | ||||||||||||
Selling, general and administrative | 2,702,552 | ||||||||||||
Income taxes | (155,347) | ||||||||||||
Net income | 561,289 | ||||||||||||
Balances Without Adoption of Topic 606 [Member] | Healthcare Distribution [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 12,692,750 | ||||||||||||
Balances Without Adoption of Topic 606 [Member] | Healthcare Distribution [Member] | Dental [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 6,348,945 | ||||||||||||
Balances Without Adoption of Topic 606 [Member] | Healthcare Distribution [Member] | Animal Health [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 3,682,639 | ||||||||||||
Balances Without Adoption of Topic 606 [Member] | Healthcare Distribution [Member] | Medical [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 2,661,166 | ||||||||||||
Balances Without Adoption of Topic 606 [Member] | Technology and Value-Added Services [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 508,939 | ||||||||||||
Effect of Change Increase/(Decrease) [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Assets | |||||||||||||
Prepaid expenses and other | (220) | (220) | |||||||||||
Investments and other | 2,491 | 2,491 | |||||||||||
Liabilities | |||||||||||||
Accrued Expenses - Taxes | 356 | 356 | |||||||||||
Accrued Expenses - Other | (1,862) | (1,862) | |||||||||||
Deferred income taxes | 591 | 591 | |||||||||||
Other Liabilities (long-term) | (711) | (711) | |||||||||||
Stockholders' equity | |||||||||||||
Retained earnings | 4,041 | 4,041 | |||||||||||
Accumulated other comprehensive loss | $ (144) | (144) | |||||||||||
Income Statement | |||||||||||||
Revenues | 306 | ||||||||||||
Cost and expenses | |||||||||||||
Cost of sales | 0 | ||||||||||||
Selling, general and administrative | (676) | ||||||||||||
Income taxes | 145 | ||||||||||||
Net income | 837 | ||||||||||||
Effect of Change Increase/(Decrease) [Member] | Healthcare Distribution [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 0 | ||||||||||||
Effect of Change Increase/(Decrease) [Member] | Healthcare Distribution [Member] | Dental [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 0 | ||||||||||||
Effect of Change Increase/(Decrease) [Member] | Healthcare Distribution [Member] | Animal Health [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 0 | ||||||||||||
Effect of Change Increase/(Decrease) [Member] | Healthcare Distribution [Member] | Medical [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | 0 | ||||||||||||
Effect of Change Increase/(Decrease) [Member] | Technology and Value-Added Services [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||||||
Income Statement | |||||||||||||
Revenues | $ 306 | ||||||||||||
[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. |
Significant Accounting Polici_3
Significant Accounting Policies - The cumulative effect of the changes made to our consolidated balance sheet (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 31, 2017 | Dec. 30, 2017 |
Assets | |||
Prepaid expenses and other | $ 520,558 | $ 454,261 | $ 454,752 |
Investments and other | 538,370 | 433,135 | 432,002 |
Liabilities | |||
Accrued Expenses - Taxes | 172,165 | 189,310 | 188,873 |
Accrued Expenses - Other | 579,276 | 453,166 | 455,780 |
Deferred income taxes | 31,570 | 50,902 | 50,431 |
Other Liabilities (long-term) | 392,313 | 420,039 | 420,285 |
Stockholders' equity | |||
Retained earnings | $ 3,208,589 | 2,942,623 | $ 2,940,029 |
Adjustments Due To Topic 606 [Member] | |||
Assets | |||
Prepaid expenses and other | 119 | ||
Investments and other | 1,133 | ||
Liabilities | |||
Accrued Expenses - Taxes | 437 | ||
Accrued Expenses - Other | (2,614) | ||
Deferred income taxes | 471 | ||
Other Liabilities (long-term) | (246) | ||
Stockholders' equity | |||
Retained earnings | 3,204 | ||
Adjustments Due To Topic 740 [Member] | |||
Assets | |||
Prepaid expenses and other | (610) | ||
Investments and other | 0 | ||
Liabilities | |||
Accrued Expenses - Taxes | 0 | ||
Accrued Expenses - Other | 0 | ||
Deferred income taxes | 0 | ||
Other Liabilities (long-term) | 0 | ||
Stockholders' equity | |||
Retained earnings | $ (610) |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,046,711 | $ 990,498 | |
Less accumulated depreciation and amortization | (664,313) | (615,497) | |
Property and equipment, net | 382,398 | 375,001 | |
Property and equipment related depreciation expense | 73,500 | 67,300 | $ 63,800 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 20,400 | 21,019 | |
Buildings and permanent improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 144,407 | 143,250 | |
Property and equipment, average useful life (in years) | 40 years | ||
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 115,993 | 106,236 | |
Machinery and warehouse equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 150,672 | 138,478 | |
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 | $ 151,999 | 149,136 | |
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 | $ 463,240 | $ 432,379 | |
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 Intangible_3
Goodwill and Other Intangibles, Net - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 2,301,331 | $ 2,019,740 |
Adjustments to goodwill: Acquisitions | 570,449 | 224,880 |
Adjustments to goodwill: Foreign currency translation | (51,485) | 56,711 |
Ending balance | 2,820,295 | 2,301,331 |
Health Care Distribution [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,096,594 | 1,831,535 |
Adjustments to goodwill: Acquisitions | 40,437 | 216,144 |
Adjustments to goodwill: Foreign currency translation | (46,590) | 48,915 |
Ending balance | 2,090,441 | 2,096,594 |
Technology and Value-Added Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 204,737 | 188,205 |
Adjustments to goodwill: Acquisitions | 530,012 | 8,736 |
Adjustments to goodwill: Foreign currency translation | (4,895) | 7,796 |
Ending balance | $ 729,854 | $ 204,737 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles, Net - Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Other intangible assets cost | $ 1,143,507 | $ 1,181,555 |
Other intangible assets net | 584,244 | 669,641 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Accumulated amortization | (559,263) | (511,914) |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 38,384 | 41,758 |
Accumulated amortization | (9,224) | (9,539) |
Net | $ 29,160 | 32,219 |
Non-compete agreements [Member] | Weighted average [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Average useful life (in years) | 5 years 2 months 12 days | |
Trademarks and tradenames [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 113,286 | 151,918 |
Accumulated amortization | (59,038) | (76,497) |
Net | $ 54,248 | 75,421 |
Trademarks and tradenames [Member] | Weighted average [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Average useful life (in years) | 8 years 2 months 12 days | |
Customer relationships and lists [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 847,561 | 851,339 |
Accumulated amortization | (409,301) | (355,327) |
Net | $ 438,260 | 496,012 |
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 | |
Product development [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 79,363 | 77,958 |
Accumulated amortization | (37,373) | (37,105) |
Net | $ 41,990 | 40,853 |
Product development [Member] | Weighted average [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Average useful life (in years) | 10 years 1 month 6 days | |
Other intangibles assets [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 64,913 | 58,582 |
Accumulated amortization | (44,327) | (33,446) |
Net | $ 20,586 | $ 25,136 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles, Net - Amortization (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to definite-lived intangible assets | $ 123.3 | $ 116.5 | $ 98.2 |
Annual amortization expense expected for 2019 | 115.7 | ||
Annual amortization expense expected for 2020 | 106.5 | ||
Annual amortization expense expected for 2021 | 93.7 | ||
Annual amortization expense expected for 2022 | 69.2 | ||
Annual amortization expense expected for 2023 | $ 59.6 |
Investments and Other (Details)
Investments and Other (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | ||
Investments And Other [Abstract] | |||||
Investments in unconsolidated affiliates | $ 283,091 | $ 268,364 | |||
Non-current deferred foreign, state and local income taxes | 83,242 | 10,962 | |||
Notes receivable | [1] | 66,652 | 35,015 | ||
Capitalized costs for internally generated software for resale | 40,070 | 35,359 | |||
Distribution rights and exclusivity agreements, net of amortization | 582 | 1,378 | |||
Acquisition related indemnification | 47,828 | 65,558 | |||
Other long-term assets | 16,905 | 15,366 | |||
Total | 538,370 | 432,002 | $ 433,135 | ||
Amortization of other long-term assets | $ 10,700 | $ 9,300 | $ 7,800 | ||
[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. |
Investments and Other - Long-te
Investments and Other - Long-term notes receivable (Details) - Financing Receivable [Member] | 12 Months Ended |
Dec. 29, 2018 | |
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 | 4 Months Ended | 12 Months Ended | |
Apr. 18, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | |
Line of Credit Facility [Line Items] | |||
Weighted average interest rate on borrowings under credit lines at period end (as a percent) | 3.30% | 2.27% | |
Revolving credit facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility expiration date | Sep. 22, 2019 | ||
Revolving credit facility maturing in April 2022 [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility borrowing capacity | $ 750 | ||
Revolving credit facility expiration date | Apr. 1, 2022 | ||
Line of credit facility, amount outstanding | $ 175 | $ 320 | |
Outstanding letters of credit provided to third parties | 11.2 | 11.3 | |
Swing-line commitments [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility borrowing capacity | 75 | ||
Revolving Credit Facility maturing in September 2019 [Member] | |||
Line of Credit Facility [Line Items] | |||
Extinguishment Of Line of Credit | $ 500 | ||
Revolving credit facility expiration date | Sep. 1, 2019 | ||
Various other short-term bank credit lines [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, amount outstanding | $ 376.5 | $ 421.7 |
Debt - Committed Loan Associate
Debt - Committed Loan Associated with Animal Health Spin-off (Details) - USD ($) $ in Thousands | Feb. 07, 2019 | Dec. 29, 2018 | Apr. 20, 2018 | Dec. 30, 2017 |
Line of Credit Facility [Line Items] | ||||
Bank credit lines | $ 951,458 | $ 741,653 | ||
Line of Credit Facility, Interest Rate at Period End | 3.30% | 2.27% | ||
Committed Loan Associated with Animal Health Spin-off [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000 | |||
Bank credit lines | $ 400,000 | |||
Equity Method Investment Aggregate Cost | $ 365,000 | |||
Line of Credit Facility, Interest Rate at Period End | 3.38% | |||
Committed Loan Associated with Animal Health Spin-off [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Repayments of Lines of Credit | $ 400,000 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Total Long-term debt | $ 1,012,828 | $ 924,415 |
Less current maturities | (8,955) | (16,659) |
Long-term debt, net | 1,003,873 | 907,756 |
Private Placement Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-term debt | 628,189 | 535,295 |
U.S. trade accounts receivable securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-term debt | 350,000 | 350,000 |
Various collateralized and uncollateralized long-term loans payable with interest, in varying installments [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-term debt | $ 29,491 | $ 34,027 |
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 | 2.61% | 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 | 5.01% | 12.90% |
Capital lease obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-term debt | $ 5,148 | $ 5,093 |
Capital lease obligations [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.07% | |
Capital lease obligations [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 19.79% |
Debt - Private Placement Facili
Debt - Private Placement Facilities (Details) - Private placement facilities [Member] $ in Billions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument Maximum Borrowing Capacity | $ 1 |
Debt Instrument, Maturity Date | Sep. 15, 2020 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Term of issuances under private placement facilities | 5 years |
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 |
Debt - Private Placement Faci_2
Debt - Private Placement Facility Borrowings (Details) - USD ($) $ in Thousands | Jan. 20, 2016 | Dec. 29, 2018 | Dec. 30, 2017 | |
Debt Instrument [Line Items] | ||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 1,012,828 | $ 924,415 | ||
Private placement facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Less: Deferred debt issuance costs | (382) | |||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 628,189 | $ 535,295 | ||
Debt Instrument, Maturity Date | Sep. 15, 2020 | |||
Private placement facilities [Member] | Private placement facilities maturing in September 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Sep. 2, 2010 | |||
Long-term Debt, Gross | $ 100,000 | |||
Borrowing Rate | 3.79% | |||
Debt Instrument, Maturity Date | Sep. 2, 2020 | |||
Private placement facilities [Member] | Private placement facilities maturing in January 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Jan. 20, 2012 | |||
Long-term Debt, Gross | $ 50,000 | |||
Borrowing Rate | 3.45% | |||
Debt Instrument, Maturity Date | Jan. 20, 2024 | |||
Private placement facilities [Member] | Private placement facilities maturing in January 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | [1] | Jan. 20, 2012 | ||
Long-term Debt, Gross | [1] | $ 28,571 | ||
Borrowing Rate | [1] | 3.09% | ||
Debt Instrument, Maturity Date | [1] | Jan. 20, 2022 | ||
Private placement facility, repayment frequency | Annual | |||
Private placement facility, annual payment | $ 7,100 | |||
Debt Instrument, Date of First Required Payment | Jan. 20, 2016 | |||
Private placement facilities [Member] | Private placement facilities maturing in December 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Dec. 24, 2012 | |||
Long-term Debt, Gross | $ 50,000 | |||
Borrowing Rate | 3.00% | |||
Debt Instrument, Maturity Date | Dec. 24, 2024 | |||
Private placement facilities [Member] | Private placement facilities maturing in June 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Jun. 2, 2014 | |||
Long-term Debt, Gross | $ 100,000 | |||
Borrowing Rate | 3.19% | |||
Debt Instrument, Maturity Date | Jun. 2, 2021 | |||
Private placement facilities [Member] | Private Placement facilities maturing in June 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Jun. 16, 2017 | |||
Long-term Debt, Gross | $ 100,000 | |||
Borrowing Rate | 3.42% | |||
Debt Instrument, Maturity Date | Jun. 16, 2027 | |||
Private placement facilities [Member] | Private Placement Facilities maturing in September 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Sep. 15, 2017 | |||
Long-term Debt, Gross | $ 100,000 | |||
Borrowing Rate | 3.52% | |||
Debt Instrument, Maturity Date | Sep. 15, 2029 | |||
Private placement facilities [Member] | Private Placement facilities maturing in January 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 100,000 | |||
Borrowing Rate | 3.32% | |||
Debt Instrument, Maturity Date | Jan. 2, 2028 | |||
[1] | (1) Annual repayments of approximately $7.1 million for this borrowing commenced on January 20, 2016. |
Debt - U.S. Trade Accounts Rece
Debt - U.S. Trade Accounts Receivable Securitization (Details) - USD ($) $ in Thousands | 5 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 01, 2016 | Jul. 06, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Apr. 17, 2013 | |
Debt Instrument [Line Items] | ||||||
Repayments of Long-term Debt | $ 28,042 | $ 60,050 | $ 15,381 | |||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 1,012,828 | 924,415 | ||||
U.S. trade accounts receivable securitization [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Pricing commitment period | 3 years | |||||
Debt Instrument, Maturity Date | Apr. 29, 2019 | Apr. 29, 2020 | ||||
Debt Instrument Maximum Borrowing Capacity | $ 350,000 | $ 350,000 | 350,000 | $ 300,000 | ||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 350,000 | 350,000 | ||||
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] | Average Asset Backed Commercial Paper Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | $ 350,000 | $ 350,000 | ||||
Debt instrument, variable rate basis at period end | 2.66% | 1.53% | ||||
Debt instrument, basis spread on variable rate | 0.75% | 0.75% | ||||
Debt instrument, interest rate at period end | 3.41% | 2.28% |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Maturities of Long-term Debt [Abstract] | ||
2,019 | $ 8,955 | |
2,020 | 458,445 | |
2,021 | 108,050 | |
2,022 | 30,421 | |
2,023 | 3,671 | |
Thereafter | 403,286 | |
Total Long-term debt | 1,012,828 | $ 924,415 |
Private Placement Facilities [Member] | ||
Maturities of Long-term Debt [Abstract] | ||
Total Long-term debt | 628,189 | $ 535,295 |
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Gross | $ 382 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Components of the change in the redeemable noncontrolling interests [Abstract] | |||
Balance, beginning of period | $ 832,138 | $ 607,636 | $ 542,194 |
Decrease in redeemable noncontrolling interests due to redemptions | (669,947) | (48,669) | (72,729) |
Increase in redeemable noncontrolling interests due to business acquisitions | 10,294 | 78,939 | 58,172 |
Net income attributable to redeemable noncontrolling interests | 21,848 | 52,203 | 48,760 |
Dividends declared | (18,065) | (28,161) | (32,973) |
Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests | (13,031) | 7,461 | (2,652) |
Change in fair value of redeemable securities | 148,919 | 162,729 | 66,864 |
Balance, end of period | $ 312,156 | $ 832,138 | $ 607,636 |
Comprehensive Income - Accumula
Comprehensive Income - Accumulated Other Comprehensive Income and Comprehensive Income Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Attributable to Redeemable noncontrolling interests: | |||||||||||
Foreign currency translation adjustment | $ (18,595) | $ (5,564) | $ (18,595) | $ (5,564) | $ (13,025) | ||||||
Attributable to noncontrolling interests: | |||||||||||
Foreign currency translation adjustment | (426) | 539 | (426) | 539 | (113) | ||||||
Attributable to Henry Schein, Inc.: | |||||||||||
Foreign currency translation gain (loss) | (234,799) | (112,439) | (234,799) | (112,439) | (296,212) | ||||||
Unrealized gain (loss) from foreign currency hedging activities | (156) | (782) | (156) | (782) | (53) | ||||||
Unrealized investment gain (loss) | (6) | (3) | (6) | (3) | 0 | ||||||
Pension adjustment gain (loss) | (13,810) | (16,843) | (13,810) | (16,843) | (20,776) | ||||||
Accumulated other comprehensive income (loss) | (248,771) | (130,067) | (248,771) | (130,067) | (317,041) | ||||||
Total Accumulated other comprehensive income (loss) | (267,792) | (135,092) | (267,792) | (135,092) | (330,179) | ||||||
Components of comprehensive income [Abstract] | |||||||||||
Net income | $ 139,010 | $ 126,976 | $ 147,509 | $ 148,631 | $ 8,510 | $ 150,948 | $ 149,582 | $ 150,253 | 562,126 | 459,293 | 556,395 |
Foreign currency translation gain (loss) | (136,356) | 191,886 | (98,402) | ||||||||
Tax effect | 0 | 0 | 0 | ||||||||
Foreign currency translation gain (loss) | (136,356) | 191,886 | (98,402) | ||||||||
Unrealized gain (loss) from foreign currency hedging activities | 1,022 | (1,515) | (1,025) | ||||||||
Tax effect | (396) | 786 | 33 | ||||||||
Unrealized gain (loss) from foreign currency hedging activities | 626 | (729) | (992) | ||||||||
Unrealized investment gain (loss) | (3) | (4) | 2 | ||||||||
Tax effect | 0 | 1 | 0 | ||||||||
Unrealized investment gain (loss) | (3) | (3) | 2 | ||||||||
Pension adjustment gain (loss) | 4,212 | 4,247 | (947) | ||||||||
Tax effect | (1,179) | (314) | 548 | ||||||||
Pension adjustment gain (loss) | 3,033 | 3,933 | (399) | ||||||||
Comprehensive income | $ 429,426 | $ 654,380 | $ 456,604 |
Comprehensive Income - Foreign
Comprehensive Income - Foreign Currency Translation Gain (Loss) Components (Details) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 26, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (136,356) | $ 191,886 | $ (98,402) | |
Euro | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (40,681) | $ 113,259 | $ (41,245) | |
FX rate into USD | 1.14 | 1.2 | 1.05 | 1.1 |
Brazilian Real | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (27,313) | $ (2,411) | $ 2,856 | |
FX rate into USD | 0.26 | 0.3 | 0.31 | 0.25 |
Australian Dollar | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (25,639) | $ 15,124 | $ (562) | |
FX rate into USD | 0.7 | 0.78 | 0.72 | 0.73 |
British Pound | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (21,329) | $ 28,001 | $ (53,723) | |
FX rate into USD | 1.26 | 1.35 | 1.23 | 1.49 |
Canadian Dollar | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (9,111) | $ 9,403 | $ 3,345 | |
FX rate into USD | 0.73 | 0.8 | 0.74 | 0.72 |
Polish Zloty | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (5,025) | $ 11,058 | $ (3,849) | |
FX rate into USD | 0.27 | 0.29 | 0.24 | 0.26 |
Swiss Franc | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (2,442) | $ 5,544 | $ (2,365) | |
FX rate into USD | 1.01 | 1.03 | 0.98 | 1.01 |
All other currencies | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $ (4,816) | $ 11,908 | $ (2,859) |
Comprehensive Income - Total Co
Comprehensive Income - Total Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Comprehensive Income Net Of Applicable Taxes [Abstract] | |||
Comprehensive income (loss) attributable to Henry Schein, Inc. | $ 417,177 | $ 593,273 | $ 409,676 |
Comprehensive income (loss) attributable to noncontrolling interests | 3,432 | 1,443 | 820 |
Comprehensive income (loss) attributable to Redeemable noncontrolling interests | 8,817 | 59,664 | 46,108 |
Comprehensive income (loss) | $ 429,426 | $ 654,380 | $ 456,604 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 |
Attributable To Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | $ 312,156 | $ 832,138 | $ 607,636 | $ 542,194 |
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of debt | 1,964,300 | 1,666,100 | ||
Fair value, measurements, recurring [Member] | ||||
Assets [Abstract] | ||||
Derivative contracts - assets | 12,533 | 11,799 | ||
Total assets | 12,533 | 11,799 | ||
Liabilities [Abstract] | ||||
Derivative contracts - liabilities | 1,708 | 2,089 | ||
Total liabilities | 1,708 | 2,089 | ||
Attributable To Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | 312,156 | 832,138 | ||
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 | 12,533 | 11,799 | ||
Total assets | 12,533 | 11,799 | ||
Liabilities [Abstract] | ||||
Derivative contracts - liabilities | 1,708 | 2,089 | ||
Total liabilities | 1,708 | 2,089 | ||
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 | $ 312,156 | $ 832,138 |
Business Acquisitions (Narrativ
Business Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Aug. 28, 2017 | May 02, 2017 | Mar. 23, 2016 | Feb. 05, 2016 | Jan. 12, 2016 | Feb. 03, 2016 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||||||||||||||||
Revenues | $ 3,375,202 | $ 3,279,678 | $ 3,326,676 | $ 3,220,439 | $ 3,318,054 | $ 3,161,083 | $ 3,059,458 | $ 2,922,948 | $ 13,201,995 | $ 12,461,543 | $ 11,571,668 | |||||||
Business acquisition allocated, goodwill | 2,820,295 | 2,301,331 | 2,820,295 | 2,301,331 | 2,019,740 | |||||||||||||
Technology and Value-Added Services [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Revenues | [1] | 509,245 | 438,101 | 425,613 | ||||||||||||||
Business acquisition allocated, goodwill | $ 729,854 | 204,737 | 729,854 | 204,737 | 188,205 | |||||||||||||
Internet Brands Inc [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Noncontrolling Interest, Increase from Business Combination | $ 567,600 | |||||||||||||||||
Internet Brands Inc [Member] | Henry Schein One, LLC. [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 26.00% | 26.00% | ||||||||||||||||
Noncontrolling interest, ownership percentage increase, second through fifth anniversary | 7.60% | |||||||||||||||||
Noncontrolling interest, ownership percentage maximum additional increase, contingency | 1.60% | |||||||||||||||||
Henry Schein One, LLC. [Member] | Technology and Value-Added Services [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition allocated, goodwill | $ 551,700 | $ 551,700 | ||||||||||||||||
Henry Schein Inc, and certain minority holders, if applicable [Member] | Henry Schein One, LLC. [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 74.00% | 74.00% | ||||||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition allocated, goodwill | $ 15,200 | $ 43,200 | $ 15,200 | $ 43,200 | $ 101,300 | |||||||||||||
Southern Anesthesia and Surgical, Inc. [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 72,000 | |||||||||||||||||
Business acquisition allocated, goodwill | $ 74,200 | |||||||||||||||||
Merritt Veterinary Supplies, Inc. [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 115,000 | |||||||||||||||||
Business acquisition allocated, goodwill | $ 34,400 | |||||||||||||||||
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 | |||||||||||||||||
Business acquisition allocated, goodwill | $ 21,400 | |||||||||||||||||
Rxworks, Inc. [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 7,000 | |||||||||||||||||
Business acquisition allocated, goodwill | $ 8,100 | |||||||||||||||||
Dental Cremer S.A. [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 70,000 | |||||||||||||||||
Business acquisition allocated, goodwill | $ 63,200 | |||||||||||||||||
J. Morita [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired equity interest (as a percent) | 50.00% | |||||||||||||||||
Business acquisition, approximate annual sales of acquired entity | $ 125,000 | |||||||||||||||||
[1] | 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. |
Plans of Restructuring (Narrati
Plans of Restructuring (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 29, 2018USD ($)positions | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 09, 2018USD ($) | Nov. 06, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges, pre-tax | $ 35,401 | $ 8,853 | $ 14,896 | $ 3,762 | $ 62,912 | $ 0 | $ 45,891 | ||
Employee severance pay and benefits [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges, pre-tax | 58,154 | 0 | 40,728 | ||||||
Facility Closing [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Charges, pre-tax | $ 3,607 | $ 0 | 3,587 | ||||||
November 2014 restructuring initiative [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 4.00% | ||||||||
Restructuring and Related Cost, Number of Positions Eliminated | positions | 900 | ||||||||
Restructuring Charges, pre-tax | $ 34,900 | ||||||||
November 2014 restructuring initiative [Member] | Minimum [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring And Related Cost Expected Percentage Of Workforce Eliminated | 2.00% | ||||||||
November 2014 restructuring initiative [Member] | Maximum [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring And Related Cost Expected Percentage Of Workforce Eliminated | 3.00% | ||||||||
Strategic Plan, 2018 to 2020 [Member] | Minimum [Member] | Scenario, Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring And Related Cost Expected Percentage Of Workforce Eliminated | 2.00% | ||||||||
Restructuring and Related Cost, Expected Cost | $ 45,000 | ||||||||
Strategic Plan, 2018 to 2020 [Member] | Maximum [Member] | Scenario, Plan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring And Related Cost Expected Percentage Of Workforce Eliminated | 3.00% | ||||||||
Restructuring and Related Cost, Expected Cost | $ 55,000 |
Plans of Restructuring - Restru
Plans of Restructuring - Restructuring Reserve Roll Forward by Expense and Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning balance | $ 4,557 | $ 4,557 | $ 25,703 | $ 12,065 | |||
Provision | $ 35,401 | $ 8,853 | $ 14,896 | 3,762 | 62,912 | 0 | 45,891 |
Payments and other adjustments | (34,833) | (21,146) | (32,253) | ||||
Restructuring Reserve, ending balance | 32,636 | 32,636 | 4,557 | 25,703 | |||
Health Care Distribution [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning balance | 4,557 | 4,557 | 25,238 | 12,062 | |||
Provision | 59,126 | 0 | 44,082 | ||||
Payments and other adjustments | (32,483) | (20,681) | (30,906) | ||||
Restructuring Reserve, ending balance | 31,200 | 31,200 | 4,557 | 25,238 | |||
Technology and Value-Added Services [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning balance | 0 | 0 | 465 | 3 | |||
Provision | 3,786 | 0 | 1,809 | ||||
Payments and other adjustments | (2,350) | (465) | (1,347) | ||||
Restructuring Reserve, ending balance | 1,436 | 1,436 | 0 | 465 | |||
Severance costs [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning balance | 3,218 | 3,218 | 22,354 | 9,103 | |||
Provision | 58,154 | 0 | 40,728 | ||||
Payments and other adjustments | (30,649) | (19,136) | (27,477) | ||||
Restructuring Reserve, ending balance | 30,723 | 30,723 | 3,218 | 22,354 | |||
Facility closing costs [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning balance | 1,315 | 1,315 | 2,454 | 2,151 | |||
Provision | 3,607 | 0 | 3,587 | ||||
Payments and other adjustments | (3,167) | (1,139) | (3,284) | ||||
Restructuring Reserve, ending balance | 1,755 | 1,755 | 1,315 | 2,454 | |||
Other [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, beginning balance | $ 24 | 24 | 895 | 811 | |||
Provision | 1,151 | 0 | 1,576 | ||||
Payments and other adjustments | (1,017) | (871) | (1,492) | ||||
Restructuring Reserve, ending balance | $ 158 | $ 158 | $ 24 | $ 895 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 152,656 | 156,787 | 161,641 |
Effect of dilutive securities: | |||
Stock options, restricted stock and restricted stock units (in shares) | 1,051 | 1,421 | 2,082 |
Diluted (in shares) | 153,707 | 158,208 | 163,723 |
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. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income before equity method investments, income taxes and loss on sale of equity investment [Abstract] | |||
Domestic | $ 505,877 | $ 649,657 | $ 625,792 |
Foreign | 189,471 | 173,191 | 130,043 |
Total income before taxes and equity in earnings of affiliates | $ 695,348 | $ 822,848 | $ 755,835 |
Income Taxes - Provisions for i
Income Taxes - Provisions for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current income tax expense: | |||
U.S. Federal | $ 93,209 | $ 283,417 | $ 185,438 |
State and local | 35,197 | 28,520 | 28,229 |
Foreign | 68,299 | 50,084 | 41,357 |
Total current | 196,705 | 362,021 | 255,024 |
Deferred income tax expense (benefit): | |||
U.S. Federal | (9,331) | 13,686 | (18,090) |
State and local | (4,625) | 856 | (4,809) |
Foreign | (27,257) | (14,057) | (14,167) |
Total deferred | (41,213) | 485 | (37,066) |
Total income tax provision | $ 155,492 | $ 362,506 | $ 217,958 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Asset (Liabilty) (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | |
Deferred income tax asset: | |||
Investment in partnerships | $ 76,232 | $ 22,600 | |
Net operating losses and other carryforwards | 44,630 | 48,711 | |
Inventory, premium coupon redemptions and accounts receivable valuation allowances | 25,270 | 23,715 | |
Stock-based compensation | 8,189 | 6,591 | |
Uniform capitalization adjustment to inventories | 18,473 | 22,525 | |
Other asset | 38,514 | 13,669 | |
Total deferred income tax asset | 211,308 | 137,811 | |
Valuation allowance for deferred tax assets | [1] | (23,535) | (31,223) |
Net deferred income tax asset | 187,773 | 106,588 | |
Deferred income tax liability | |||
Intangibles amortization | (122,805) | (132,280) | |
Property and equipment | (13,296) | (13,777) | |
Total deferred tax liability | (136,101) | (146,057) | |
Net deferred income tax asset (liability) | [2] | $ (39,469) | |
Net deferred income tax asset (liability) | [2] | $ 51,672 | |
[1] | 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.” | ||
[2] | 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. |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Foreign tax authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards subject to amortization | $ 2.4 |
Net operating loss carryforwards not subject to expiration | $ 135.9 |
Net operating loss carryforwards, year of expiration | Dec. 31, 2026 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards subject to amortization | $ 16.9 |
Net operating loss carryforwards not subject to expiration | $ 12.5 |
Net operating loss carryforwards, year of expiration | Dec. 31, 2038 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax provision at federal statutory rate | $ 146,023 | $ 287,996 | $ 264,542 |
State income tax provision, net of federal income tax effect | 16,271 | 12,457 | 11,236 |
Foreign income tax provision | (420) | (24,433) | (18,036) |
Pass through noncontrolling interest | (4,595) | (11,623) | (13,083) |
Valuation allowance | 2,037 | 1,008 | 1,472 |
Unrecognized tax benefits and audit settlements | 4,166 | 3,899 | 3,066 |
Interest expense related to loans | (11,925) | (18,717) | (21,737) |
Excess tax benefits related to stock compensation | (837) | (17,387) | 0 |
Transition tax on deemed repatriation of foreign earnings | (10,000) | 140,000 | 0 |
Revaluation of deferred tax assets and liabilities | (1,676) | 2,953 | 0 |
Tax on global intangible low-taxed income ("GILTI") | 7,455 | 0 | 0 |
Transaction costs related to Animal Health spin-off | 7,325 | 0 | 0 |
Tax benefit related to legal entity reorganization outside the U.S. | (13,852) | 0 | 0 |
Tax charge related to reorganization of legal entities related to forming Henry Schein One | 3,914 | 0 | 0 |
Tax charge related to reorganization of legal entities completed in preparation for the Animal Health spin-off | 3,135 | 0 | 0 |
Other | 8,471 | (13,647) | (9,502) |
Total income tax provision | $ 155,492 | $ 362,506 | $ 217,958 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of period | $ 90,900 | $ 90,400 | $ 77,600 |
Additions based on current year tax positions | 5,000 | 8,500 | 7,300 |
Additions based on prior year tax positions | 11,600 | 6,100 | 20,400 |
Reductions based on prior year tax positions | (1,700) | (800) | (900) |
Reductions resulting from settlements with taxing authorities | (1,900) | (10,500) | (9,700) |
Reductions resulting from lapse in statutes of limitations | (20,400) | (2,800) | (4,300) |
Balance, end of period | $ 83,500 | $ 90,900 | $ 90,400 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Effective tax rate (in hundredths) | 22.40% | 44.10% | |
Effective tax rate without the effect of income tax expense (as a percent) | 26.70% | ||
Effect of Tax Cuts and Jobs Act [Abstract] | |||
Tax on global intangible low-taxed income ("GILTI") | $ 7,455 | $ 0 | $ 0 |
Revaluation of deferred tax assets and liabilities | (1,676) | 2,953 | 0 |
Provision for (benefit from) transitional tax | (10,000) | 140,000 | 0 |
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Current | 9,900 | ||
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Noncurrent | $ 104,200 | ||
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | $ 143,000 | ||
Tax Cuts and Jobs Act, Accounting Complete [true false] | true | ||
Tax Cuts and Jobs Act, Accounting Complete, Date | Dec. 22, 2018 | ||
Unrecognized tax benefits | $ 100,000 | ||
Unrecognized tax benefits that would affect the effective tax rate if recognized | 86,100 | ||
Total interest | 16,400 | ||
Total penalties | $ 0 | ||
Other Information Pertaining to Income Taxes | 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 proposed settlement was reached. On July 13, 2016, a joint status report was filed with the Tax Court indicating 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 Internal Revenue Service’s Special Trial Attorney and submitted to the Tax Court finalizing the Appeals decision. Additionally, during the quarter ended December 31, 2016 we filed a Mutual Agreement Procedure request with the IRS for assistance from the U.S. Competent Authority for an open Transfer Pricing issue which resulted in a partial settlement during the quarter ended December 30, 2017. We received a 30 Day Letter from the IRS during the quarter ended April 1, 2017 for the remaining open audit issues for the years 2012 and 2013. We filed a Protest with the Appellate Division regarding these issues during the second quarter of 2017. We had an initial Appeals Conference during the third quarter of 2018, of which we are awaiting a final settlement. During the quarter ended December 29, 2018, we submitted the first draft of our proposed Advanced Pricing Agreement covering tax years 2014-2024 to the IRS in which Henry Schein, Inc. and the IRS would agree on an appropriate transfer pricing methodology. We do not expect this to have a material effect on our consolidated financial position, liquidity or the results of operations. | ||
Internal Revenue Service (IRS) [Member] | |||
Income Tax Examination [Line Items] | |||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ (4,500) |
Concentrations of Risk (Details
Concentrations of Risk (Details) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
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) | 32.00% | 34.00% |
Supplier concentration risk [Member] | Purchases [Member] | Single largest supplier [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage (as a percent) | 6.00% | 5.00% |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum duration of foreign currency forward contracts | 18 months |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Net sales (Details) $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Disaggregation of Revenue [Abstract] | |
Net sales | $ 13,201,995 |
North America [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 8,740,783 |
International [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 4,461,212 |
Healthcare Distribution [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 12,692,750 |
Healthcare Distribution [Member] | North America [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 8,314,130 |
Healthcare Distribution [Member] | International [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 4,378,620 |
Healthcare Distribution [Member] | Dental [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 6,348,945 |
Healthcare Distribution [Member] | Dental [Member] | North America [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 3,867,118 |
Healthcare Distribution [Member] | Dental [Member] | International [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 2,481,827 |
Healthcare Distribution [Member] | Animal Health [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 3,682,639 |
Healthcare Distribution [Member] | Animal Health [Member] | North America [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 1,865,316 |
Healthcare Distribution [Member] | Animal Health [Member] | International [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 1,817,323 |
Healthcare Distribution [Member] | Medical [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 2,661,166 |
Healthcare Distribution [Member] | Medical [Member] | North America [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 2,581,696 |
Healthcare Distribution [Member] | Medical [Member] | International [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 79,470 |
Technology and Value-Added Services [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 509,245 |
Technology and Value-Added Services [Member] | North America [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | 426,653 |
Technology and Value-Added Services [Member] | International [Member] | |
Disaggregation of Revenue [Abstract] | |
Net sales | $ 82,592 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Revenue from Contracts with Customers [Abstract] | ||
Contract with Customer, Liability, Current | $ 83.6 | $ 85.7 |
Contract with Customer, Liability, Noncurrent | $ 5.3 | $ 5.2 |
Segment and Geographic Data (De
Segment and Geographic Data (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2018USD ($)number | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Jul. 01, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 29, 2018USD ($)number | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Number of reportable segments | number | 2 | |||||||||||
Number of countries served globally | number | 31 | 31 | ||||||||||
Net sales | $ 3,375,202 | $ 3,279,678 | $ 3,326,676 | $ 3,220,439 | $ 3,318,054 | $ 3,161,083 | $ 3,059,458 | $ 2,922,948 | $ 13,201,995 | $ 12,461,543 | $ 11,571,668 | |
Operating income | 179,635 | $ 165,926 | $ 201,349 | $ 206,142 | 241,191 | $ 213,548 | $ 210,662 | $ 193,968 | 753,052 | 859,369 | 771,574 | |
Income before taxes, equity in earnings of affiliates and loss on sale of equity investment | 695,348 | 822,848 | 755,835 | |||||||||
Depreciation and amortization | 207,560 | 193,072 | 169,780 | |||||||||
Income taxes | 155,492 | 362,506 | 217,958 | |||||||||
Interest income | 21,236 | 17,553 | 13,275 | |||||||||
Interest expense | 78,786 | 53,654 | 31,893 | |||||||||
Purchases of fixed assets | 90,637 | 81,501 | 70,179 | |||||||||
Total assets | 8,500,527 | 7,863,995 | 8,500,527 | 7,863,995 | 6,811,763 | |||||||
Health Care Distribution [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [1] | 12,692,750 | 12,023,442 | 11,146,055 | ||||||||
Operating income | 618,788 | 728,520 | 652,106 | |||||||||
Income before taxes, equity in earnings of affiliates and loss on sale of equity investment | 563,006 | 696,453 | 640,184 | |||||||||
Depreciation and amortization | 179,760 | 168,186 | 146,276 | |||||||||
Income taxes | 101,179 | 325,302 | 185,571 | |||||||||
Interest income | 20,849 | 17,318 | 13,086 | |||||||||
Interest expense | 78,769 | 53,607 | 31,845 | |||||||||
Purchases of fixed assets | 87,131 | 76,449 | 66,611 | |||||||||
Total assets | 7,375,723 | 7,399,718 | 7,375,723 | 7,399,718 | 6,377,253 | |||||||
Health Care Distribution [Member] | Dental [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 6,348,945 | 6,048,813 | 5,555,299 | |||||||||
Health Care Distribution [Member] | Animal Health [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 3,682,639 | 3,476,635 | 3,253,095 | |||||||||
Health Care Distribution [Member] | Medical [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 2,661,166 | 2,497,994 | 2,337,661 | |||||||||
Technology and Value-Added Services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [2] | 509,245 | 438,101 | 425,613 | ||||||||
Operating income | 134,264 | 130,849 | 119,468 | |||||||||
Income before taxes, equity in earnings of affiliates and loss on sale of equity investment | 132,342 | 126,395 | 115,651 | |||||||||
Depreciation and amortization | 27,800 | 24,886 | 23,504 | |||||||||
Income taxes | 54,313 | 37,204 | 32,387 | |||||||||
Interest income | 387 | 235 | 189 | |||||||||
Interest expense | 17 | 47 | 48 | |||||||||
Purchases of fixed assets | 3,506 | 5,052 | 3,568 | |||||||||
Total assets | $ 1,124,804 | $ 464,277 | $ 1,124,804 | $ 464,277 | $ 434,510 | |||||||
[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. |
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. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 3,375,202 | $ 3,279,678 | $ 3,326,676 | $ 3,220,439 | $ 3,318,054 | $ 3,161,083 | $ 3,059,458 | $ 2,922,948 | $ 13,201,995 | $ 12,461,543 | $ 11,571,668 |
Long-Lived Assets | 3,786,936 | 3,345,973 | 3,786,936 | 3,345,973 | 2,974,826 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 8,348,398 | 7,904,698 | 7,536,897 | ||||||||
Long-Lived Assets | 2,522,477 | 2,000,624 | $ 2,522,477 | $ 2,000,624 | $ 1,803,689 | ||||||
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 | $ 4,853,597 | $ 4,556,845 | $ 4,034,771 | ||||||||
Long-Lived Assets | $ 1,264,459 | $ 1,345,349 | $ 1,264,459 | $ 1,345,349 | $ 1,171,137 |
Employee Benefit Plans - Stock-
Employee Benefit Plans - Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Compensation Related Costs [Abstract] | |||
Pre-tax share-based compensation expense | $ 36,200 | $ 42,300 | $ 58,200 |
After-tax share-based compensation expense | 28,100 | 23,700 | 41,400 |
Excess tax benefits | 0 | $ 0 | $ (463) |
Liability for cash settlement stock-based compensation awards | $ 800 | ||
Weighted-average grant date fair value of stock-based awards granted before forfeitures (in dollars per share) | $ 71.38 | $ 85.43 | $ 83.9 |
Total unrecognized compensation cost related to non-vested awards | $ 77,900 | ||
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 | $ 3,076 | $ 5,266 | $ 11,404 |
Stock option exercises tax benefits | $ 0 | $ 0 | $ 23,392 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
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) | 155 | 353 | 769 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (153) | (198) | (416) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding at end of period (in shares) | 2 | 155 | 353 |
Ending balance, options exercisable (in shares) | 2 | 155 | 353 |
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) | $ 29.65 | $ 28.59 | $ 28 |
Granted (in dollars per share) | 0 | 0 | 0 |
Exercised (in dollars per share) | 29.81 | 27.76 | 27.49 |
Forfeited (in dollars per share) | 0 | 0 | 0 |
Outstanding at end of period (in dollars per share) | 17.22 | 29.65 | 28.59 |
Ending balance, options exercisable (in dollars per share) | $ 17.22 | $ 29.65 | $ 28.59 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Stock option outstanding aggregate intrinsic value as of period end | $ 121 | $ 6,256 | $ 16,681 |
Stock option exercisable aggregate intrinsic value as of period end | $ 121 | $ 6,256 | $ 16,681 |
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) | $ 76.48 | $ 83.16 | $ 81.86 |
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) | 1,233 | ||
Granted (in shares) | 367 | ||
Vested (in shares) | (312) | ||
Forfeited (in shares) | (88) | ||
Ending balance outstanding (in shares) | 1,200 | 1,233 | |
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) | $ 70.28 | ||
Granted (in dollars per share) | 66 | ||
Vested (in dollars per share) | 62.98 | ||
Forfeited (in dollars per share) | 77.67 | ||
Ending balance outstanding (in dollars per share) | 70.33 | $ 70.28 | |
Intrinsic value (in dollars per share) | $ 77.92 | ||
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) | 1,226 | ||
Granted (in shares) | 200 | ||
Vested (in shares) | (426) | ||
Forfeited (in shares) | (80) | ||
Ending balance outstanding (in shares) | 920 | 1,226 | |
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) | $ 60.81 | ||
Granted (in dollars per share) | 72.16 | ||
Vested (in dollars per share) | 71.33 | ||
Forfeited (in dollars per share) | 77.27 | ||
Ending balance outstanding (in dollars per share) | 50.86 | $ 60.81 | |
Intrinsic value (in dollars per share) | $ 77.92 | ||
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) | 62,459 | ||
Shares available to be granted (in shares) | 6,262 | ||
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) | 1,800 | ||
Shares available to be granted (in shares) | 256 | ||
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. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
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 | $ 2.3 | $ 5 | $ 1.7 |
Qualified 401K plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Amounts charged (credited) to operations | $ (35) | (39) | (33.9) |
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 | $ 0.4 | $ (0.6) | $ (0.3) |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases, Future Minimum Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2,019 | $ 78,940 | ||
2,020 | 61,605 | ||
2,021 | 44,574 | ||
2,022 | 31,501 | ||
2,023 | 23,365 | ||
Thereafter | 68,373 | ||
Total minimum operating lease payments | 308,358 | ||
Total rent expense | $ 91,100 | $ 84,800 | $ 79,600 |
Commitments and Contingencies_2
Commitments and Contingencies - Capital Leases, Future Minimum Payments (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Capital Leases, Future Minimum Payments Due [Abstract] | |
2,019 | $ 1,695 |
2,020 | 1,134 |
2,021 | 710 |
2,022 | 313 |
2,023 | 291 |
Thereafter | 1,430 |
Total minimum capital lease payments | 5,573 |
Less: Amount representing interest at 0.07% and 19.79% | (425) |
Total present value of minimum capital lease payments | $ 5,148 |
Capital lease obligations [Member] | Minimum [Member] | |
Leases, Capital [Abstract] | |
Debt instrument, interest rate, stated percentage | 0.07% |
Capital lease obligations [Member] | Maximum [Member] | |
Leases, Capital [Abstract] | |
Debt instrument, interest rate, stated percentage | 19.79% |
Commitments and Contingencies_3
Commitments and Contingencies - Unrecorded Unconditional Purchase Obligation (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Unrecorded Unconditional Purchase Obligation [Abstract] | |
2,019 | $ 499,346 |
2,020 | 215,445 |
2,021 | 230,967 |
2,022 | 124,465 |
2,023 | 446 |
Thereafter | 0 |
Total minimum inventory purchase commitment payments | $ 1,070,669 |
Commitments and Contingencies_4
Commitments and Contingencies - Other Commitments (Details) $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Employment, consulting and non-compete agreements [Member] | |
Other Commitment, Fiscal Year Maturity [Abstract] | |
2,019 | $ 16,600 |
2,020 | 1,800 |
2,021 | 800 |
2,022 | 100 |
2,023 | 0 |
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 |
Commitments and Contingencies_5
Commitments and Contingencies - Litigation (Details) - USD ($) $ in Thousands | Jan. 29, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Oct. 31, 2018 |
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Litigation settlements | $ 0 | $ 38,488 | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,325 | $ 0 | $ 38,488 | $ 5,325 | $ 0 | ||
Loss Contingency, Management's Assessment and Process | As of December 29, 2018, 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. | ||||||||||||
Class Action Complaints Against Patterson Companies, Inc., Benco Dental Supply Co. and Henry Schein, Inc. [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | January 2,016 | ||||||||||||
Loss Contingency, Name of Defendant | Patterson Companies, Inc. (“Patterson”), Benco Dental Supply Co. (“Benco”) and Henry Schein, Inc. | ||||||||||||
Loss Contingency, Name of Plaintiff | class action complaints | ||||||||||||
Loss Contingency, Allegations | each of these complaints alleges, 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. | ||||||||||||
Litigation settlements | $ 38,500 | ||||||||||||
Archer and White Sales, Inc. v. collectively, the Danaher Defendants [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | August 31, 2012 | ||||||||||||
Loss Contingency, Name of Defendant | Henry Schein, Inc. as well as Danaher Corporation and its subsidiaries Instrumentarium Dental, Inc., Dental Equipment, LLC, Kavo Dental Technologies, LLC and Dental Imaging Technologies Corporation (collectively, the “Danaher Defendants”) | ||||||||||||
Loss Contingency, Name of Plaintiff | Archer and White Sales, Inc. | ||||||||||||
Loss Contingency, Allegations | Archer alleges a conspiracy between Henry Schein, an unnamed company and the Danaher Defendants to terminate or limit Archer’s distribution rights. | ||||||||||||
Archer filed amended complaint adding Patterson and Benco as Defendants [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | On August 1, 2017 | ||||||||||||
Loss Contingency, Name of Defendant | Henry Schein, Inc. as well as Danaher Corporation and its subsidiaries Instrumentarium Dental, Inc., Dental Equipment, LLC, Kavo Dental Technologies, LLC and Dental Imaging Technologies Corporation (collectively, the “Danaher Defendants”) | ||||||||||||
Loss Contingency, Name of Plaintiff | Archer and White Sales, Inc. | ||||||||||||
Loss Contingency, Allegations | and alleging that Henry Schein, Patterson, Benco and Burkhart conspired to fix prices and refused to compete with each other for sales of dental equipment to dental professionals and agreed to enlist their common suppliers, the Danaher Defendants, to join a price-fixing conspiracy and boycott by reducing the distribution territory of, and eventually terminating, their price-cutting competing distributor Archer. | ||||||||||||
Archer filed second amended complaint under seal [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | October 30, 2017 | ||||||||||||
Loss Contingency, Name of Defendant | Henry Schein, Inc. as well as Danaher Corporation and its subsidiaries Instrumentarium Dental, Inc., Dental Equipment, LLC, Kavo Dental Technologies, LLC and Dental Imaging Technologies Corporation (collectively, the “Danaher Defendants”), Patterson Companies, Inc. (“Patterson”), Benco Dental Supply Co. (“Benco”) | ||||||||||||
Loss Contingency, Name of Plaintiff | Archer and White Sales, Inc. | ||||||||||||
Loss Contingency, Allegations | additional allegations that it believes support its claims | ||||||||||||
IQ Dental Supply, Inc V. Henry Schein, Inc. Patterson Companies, Inc. [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | August 17, 2017 | ||||||||||||
Loss Contingency, Name of Defendant | Henry Schein, Inc., Patterson Companies, Inc. and Benco Dental Supply Company | ||||||||||||
Loss Contingency, Name of Plaintiff | IQ Dental Supply, Inc | ||||||||||||
Loss Contingency, Allegations | Plaintiff alleges that it is a distributor of dental supplies and equipment, and sells dental products through an online dental distribution platform operated by SourceOne Dental (“SourceOne”). | ||||||||||||
United States Federal Trade Commission [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | February 12, 2018 | ||||||||||||
Loss Contingency, Name of Defendant | Benco Dental Supply Co., Henry Schein, Inc. and Patterson Companies, Inc. | ||||||||||||
Loss Contingency, Name of Plaintiff | United States Federal Trade Commission | ||||||||||||
Loss Contingency, Allegations | The FTC alleges, among other things, that defendants violated U.S. antitrust laws by conspiring, and entering into an agreement, to refuse to provide discounts to or otherwise serve buying groups representing dental practitioners. | ||||||||||||
Salkowitz v. Henry Schein, Inc. et al [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | March 7, 2018 | ||||||||||||
Loss Contingency, Name of Defendant | Henry Schein, Inc., Stanley M. Bergman and Steven Paladino | ||||||||||||
Loss Contingency, Name of Plaintiff | Joseph Salkowitz, individually and on behalf of all others similarly situated | ||||||||||||
Loss Contingency, Allegations | The complaint alleged, among other things, that the defendants had made materially false and misleading statements about Henry Schein’s business, operations and prospects during the Class Period, including matters relating to the issues in the antitrust class action and the FTC action described above, thereby causing the plaintiff and members of the purported class to pay artificially inflated prices for Henry Schein securities. | ||||||||||||
Marion Diagnostic Center, LLC, et al. v. Becton, Dickinson, and Co., et al [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | May 3, 2018 | ||||||||||||
Loss Contingency, Name of Defendant | Becton, Dickinson, and Co. (“Becton”); Premier, Inc. (“Premier”), Vizient, Inc. (“Vizient”), Cardinal Health, Inc. (“Cardinal”), Owens & Minor Inc. (“O&M”), Henry Schein, Inc., and Unnamed Becton Distributor Co-Conspirators | ||||||||||||
Loss Contingency, Name of Plaintiff | Marion Diagnostic Center, LLC, et al. | ||||||||||||
Loss Contingency, Allegations | The complaint alleges that the defendants entered into a vertical conspiracy to force healthcare providers into long-term exclusionary contracts that restrain trade in the nationwide markets for conventional and safety syringes and safety IV catheters and inflate the prices of certain Becton products to above-competitive levels. | ||||||||||||
The County of Summit, Ohio et al. v. Purdue Pharma, L.P., et al [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | May 29, 2018 | ||||||||||||
Loss Contingency, Name of Defendant | Henry Schein, Inc., Henry Schein Medical Systems, Inc. and others as defendants | ||||||||||||
Loss Contingency, Name of Plaintiff | The County of Summit, Ohio et al. | ||||||||||||
Loss Contingency, Allegations | Plaintiffs allege that manufacturers of prescription opioid drugs engaged in a false advertising campaign to expand the market for such drugs and their own market share and that the entities in the supply chain (including Henry Schein, Inc. and Henry Schein Medical Systems, Inc.) reaped financial rewards by refusing or otherwise failing to monitor appropriately and restrict the improper distribution of those drugs. | ||||||||||||
Actions consolidated in the MultiDistrict Litigation [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Name of Defendant | Henry Schein and/or one or more of its affiliated companies | ||||||||||||
Loss Contingency, Allegations | allege claims similar to those alleged in the Summit County Action | ||||||||||||
Maximum sales of opioids in North America during the year, percentage | 1.00% | ||||||||||||
Kramer v. Henry Schein, Inc., Patterson Co., Inc., Benco Dental Supply Co., and Unnamed Co-Conspirators [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | October 9, 2018 | ||||||||||||
Loss Contingency, Name of Defendant | Henry Schein, Inc., Patterson Co., Inc., Benco Dental Supply Co., and Unnamed Co-Conspirators | ||||||||||||
Loss Contingency, Name of Plaintiff | Kramer | ||||||||||||
Loss Contingency, Allegations | The complaint alleges that the alleged conspiracy overcharged California dental practices, orthodontic practices and dental laboratories on their purchase of dental supplies, which in turn passed on some or all of such overcharges to members of the California class purchasing dental services. | ||||||||||||
R. Lawrence Hatchett, M.D. against Henry Schein, Inc., Patterson Co., Inc., Benco Dental Supply Co., and unnamed co-conspirators [Member] | Subsequent Event [Member] | |||||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||||
Loss Contingency, Lawsuit Filing Date | January 29, 2019 | ||||||||||||
Loss Contingency, Name of Defendant | Henry Schein, Inc., Patterson Co., Inc., Benco Dental Supply Co., and unnamed co-conspirators | ||||||||||||
Loss Contingency, Name of Plaintiff | R. Lawrence Hatchett, M.D. | ||||||||||||
Loss Contingency, Allegations | The complaint alleges that members of the proposed class suffered antitrust injury due to an unlawful boycott, price-fixing or otherwise anticompetitive conspiracy among Henry Schein, Patterson and Benco. |
Quarterly Information (Unaudi_3
Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 3,375,202 | $ 3,279,678 | $ 3,326,676 | $ 3,220,439 | $ 3,318,054 | $ 3,161,083 | $ 3,059,458 | $ 2,922,948 | $ 13,201,995 | $ 12,461,543 | $ 11,571,668 |
Gross profit | 909,860 | 888,560 | 901,072 | 895,592 | 900,956 | 836,054 | 839,173 | 822,920 | 3,595,084 | 3,399,103 | 3,226,473 |
Litigation settlements | 0 | 38,488 | 0 | 0 | 0 | 0 | 5,325 | 0 | 38,488 | 5,325 | 0 |
Transaction costs related to Animal Health spin-off | 20,086 | 7,282 | 7,611 | 3,777 | 38,756 | 0 | 0 | ||||
Restructuring costs | 35,401 | 8,853 | 14,896 | 3,762 | 62,912 | 0 | 45,891 | ||||
Operating income | 179,635 | 165,926 | 201,349 | 206,142 | 241,191 | 213,548 | 210,662 | 193,968 | 753,052 | 859,369 | 771,574 |
Net income | 139,010 | 126,976 | 147,509 | 148,631 | 8,510 | 150,948 | 149,582 | 150,253 | 562,126 | 459,293 | 556,395 |
Amounts attributable to Henry Schein, Inc.: | |||||||||||
Net income | $ 132,973 | $ 121,478 | $ 141,212 | $ 140,218 | $ (8,535) | $ 138,031 | $ 136,055 | $ 140,748 | $ 535,881 | $ 406,299 | $ 506,778 |
Earnings per share attributable to Henry Schein, Inc.: | |||||||||||
Basic (in dollars per share) | $ 0.88 | $ 0.8 | $ 0.92 | $ 0.92 | $ (0.06) | $ 0.88 | $ 0.86 | $ 0.89 | $ 3.51 | $ 2.59 | $ 3.14 |
Diluted (in dollars per share) | $ 0.87 | $ 0.79 | $ 0.92 | $ 0.91 | $ (0.06) | $ 0.87 | $ 0.86 | $ 0.88 | $ 3.49 | $ 2.57 | $ 3.1 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | ||||
Interest | $ 72,310 | $ 49,311 | $ 29,391 | |
Income taxes | 248,245 | 221,832 | 205,196 | |
Unrealized gain (loss) from foreign currency hedging activities | 1,022 | (1,515) | (1,025) | |
Debt assumed as part of acquisitions | 0 | 400 | $ 63,800 | |
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Business Acquisition, non-cash transaction | $ 1,400 | $ 17,600 | ||
Internet Brands Inc [Member] | Henry Schein One, LLC. [Member] | Internet Brands Inc [Member] | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Business Acquisition, non-cash transaction | $ 385,000 | |||
Noncash or Part Noncash Acquisition, Interest Acquired | 26.00% | |||
Achievement of certain operating targets [Member] | Henry Schein One, LLC. [Member] | Henry Schein One, LLC. [Member] | Internet Brands Inc [Member] | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Business Acquisition, non-cash transaction | $ 182,600 | |||
Noncash or Part Noncash Acquisition, Interest Acquired | 9.20% |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance For Doubtful Accounts And Other [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 53,832 | $ 38,962 | $ 30,974 |
Charged to statement of income | 15,105 | 9,370 | 2,647 |
Charged to other accounts | (700) | 12,206 | 11,576 |
Deductions | (7,704) | (6,706) | (6,235) |
Balance at end of period | $ 60,533 | $ 53,832 | $ 38,962 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | Feb. 07, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||||||||||||
Revenues | $ 3,375,202 | $ 3,279,678 | $ 3,326,676 | $ 3,220,439 | $ 3,318,054 | $ 3,161,083 | $ 3,059,458 | $ 2,922,948 | $ 13,201,995 | $ 12,461,543 | $ 11,571,668 | ||
Net income | $ 132,973 | $ 121,478 | $ 141,212 | $ 140,218 | $ (8,535) | $ 138,031 | $ 136,055 | $ 140,748 | 535,881 | 406,299 | 506,778 | ||
Healthcare Distribution [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenues | [1] | $ 12,692,750 | $ 12,023,442 | $ 11,146,055 | |||||||||
Subsequent Event [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | $ 361,100 | ||||||||||||
Subsequent Event [Member] | Henry Schein Animal Health Business [Member] | Healthcare Distribution [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Discontinued operation name | Henry Schein Animal Health Business | ||||||||||||
Subsequent Event [Member] | Henry Schein Animal Health Business [Member] | Continuing Operations [Member] | Healthcare Distribution [Member] | Pro Forma [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenues | $ 9,400,000 | ||||||||||||
Net income | 430,700,000 | ||||||||||||
HS Spinco, Inc [Member] | Subsequent Event [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Proceeds from Issuance of Common Stock | $ 361,100 | ||||||||||||
Henry Schein stockholders and the Share Sale Investors [Member] | Subsequent Event [Member] | Covetrus, Inc. [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 63.00% | ||||||||||||
Vets First Corp [Member] | Subsequent Event [Member] | Covetrus, Inc. [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 37.00% | ||||||||||||
HS Spinco, Inc [Member] | HS Spinco, Inc [Member] | Subsequent Event [Member] | Henry Schein Animal Health Business [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Proceeds from dividends received | $ 1,120,000 | ||||||||||||
[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. |